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While the general public awareness of the dangers of

our continuing and growing reliance upon oil produced beyond our borders is higher today than it was prior to the Arab oil embargo in 1973, we have yet to arrive at a national energy policy which is realistic, generally acceptable, and calculated to address our long-term interests. One of the primary objectives of the DOE, working with Congress on a bi-partisan basis, will be the development of such a policy.

I am hopeful that my background in prior governmental energy positions and my subsequent legal representation of energy producers, transporters and consumers can provide assistance in the myriad of legal issues which will arise from the pursuit of a national energy strategy, as well as in the constant flow of legal, regulatory, administrative, and legislative questions which demand the attention of attorneys at the DOE. My specific legal training includes litigating before judicial and administrative bodies, extensive negotiating in both hostile disputes and mutually beneficial business arrangements, and counseling and advising in sophisticated business transactions. I also have had considerable experience as a manager and as an administrator of large numbers of attorneys.

In addition to the 24 years as a practicing attorney that I would bring to the position of General Counsel, my

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experience as an executive and the principal counsel of a major diversified energy concern has enabled me to understand both how this complex industry operates and what motivates business and investors to act, or to refrain from acting, in certain ways. Hopefully, I can call attention to proposed measures designed to achieve an objective which may be non-productive, or even counter-productive, to reaching the desired result.

I believe my background and understanding of energy issues can assist in recognizing those actions DOE may be requested to take that are not only particularly beneficial to the proponent, but may be at cross-purposes with the general mandate given to the DOE by Congress and the President. In other words, I believe I can assess the validity of, and the purpose behind, positions which may be taken at the DOE and ask the appropriate questions to complete the record for the benefit of

the decision-maker.

The major immediate problem confronting the DOE is compliance with environmental, health and safety requirements at its nuclear weapons complex. The Department cannot be expected to achieve public confidence and credibility in dealing with energy issues generally until it makes substantial progress toward placing its own house in order. Admiral Watkins has strongly stated that the DOE is committed to complying with the

Nation's environmental laws and to protecting public health and safety.

In this regard, you may be assured that I am in total agreement with this objective. I shall seek, if confirmed, to render legal advice as to whether the DOE is in compliance with the letter and spirit of the environmental laws and, if not, what must be done to achieve such compliance. I shall not seek to justify a position which is at odds with the clear purposes of these laws, nor do I believe that Admiral Watkins would wish me

to do so.

In closing, I pledge that if confirmed, I will work with the members and staff of this Committee and Congress as a whole to respond to issues of Congressional concern and to carry out the statutory mandates which the DOE has been given.

Thank you for your consideration of my nomination.

The CHAIRMAN. Thank you very much.

Mr. Davis.

STATEMENT OF JON MICHAEL DAVIS, NOMINEE TO BE ASSISTANT SECRETARY FOR CONSERVATION AND RENEWABLE ENERGY, DEPARTMENT OF ENERGY

Mr. DAVIS. Thank you. I would like to thank Senator Armstrong and Senator Wirth for their remarks to the committee. I would also like to thank Senators Hatfield, Domenici, Senator Wirth, Senator Conrad and Senator Burns for the time they made available to us prior to this hearing. Thank you very much.

I would like to take a moment and introduce my wife, Joan.
The CHAIRMAN. Welcome, Mrs. Davis.

Mr. DAVIS. It is a privilege to me. I have my personal partner here and also my business partner. Joan has a good background in marketing both conservation and renewable technologies. So that is, I think, a huge benefit to me.

I appreciate the opportunity to appear before you today as President Bush's and Secretary Watkins' nominee for the position of Assistant Secretary for Conservation and Renewable Energy.

I am proud to be nominated and to have an opportunity to serve under this administration, particularly, at this time of increased awareness on energy supply and environmental protection.

I share Secretary Watkins' commitment to developing and carrying out the President's national energy strategy and to fulfilling the mandates Congress has established, in law, for the department. If confirmed, I will uphold the standards of government established by President Bush, and consider it a privilege to work with this committee and members of Congress to move towards an environmentally safe and nationally secure energy future.

With your approval, Mr. Chairman, I will summarize my written statement.

The CHAIRMAN. Yes, please. All written statements will be put in the record as if read in full.

Mr. DAVIS. Thank you. My formal education was at the United States Air Force Academy and the University of Illinois. My technical background includes active duty, engineering design, construction and educational activities in the United States and Vietnam.

I served on the faculty of the Air Force Academy, where I developed an entire solar curriculum, directed research, and helped build one of the first working solar laboratories.

I also served with the Air Force Civil Engineering Center as an engineer, consulting on energy conservation options world wide.

I am a registered professional engineer in Colorado. I have held management positions within the Department of Energy and also at the Solar Energy Research Institute.

And I have been an investor, owner and operator of businesses dealing with both conservation and renewable technologies.

Admiral Watkins has indicated that he wants the department to have high creditability with Congress and the American people. My ideas and approaches for improving the conservation and renewable energy programs, gained from both public and private experi

ence, will complement the foundation being built by the Admiral for the Department.

The debate continues on the role of the Federal Government and what role it should play in energy research and development. I believe there are special characteristics that pertain to conservation and renewable energy technologies that bear on this debate.

Conservation and renewable programs encompass many different technologies and affect, industries in buildings, industrial process heat, utilities, transportation, international export, and even government programs at the state and local level. Also many of these technologies are at different levels of development as well.

The conservation and renewable energy technologies represent a vast constituency in this country, and we are unique in that we have the opportunity to serve on both sides of the meter.

I think that means that the Federal program needs to be somewhat more flexible in terms of how we support the different technologies.

I personally experienced major energy policy changes over a relatively short time. To the extent possible, such changes should be avoided. It is very difficult for markets, for companies, and for investors to adjust and to make informed decisions.

In the past, we have had examples of market incentives being offered ahead of technology and infrastructure readiness. Now we are moving closer to commercialization with certain technologies, and many of the market incentives are no longer available. This makes capital formation and human resource development unacceptably risky and difficult. We clearly need a more balanced and stable approach.

Conservation and renewable energy technologies have been both oversold and undersold. The questions remain-what are the best near-term, mid-term and long-term investments, and whose data do you believe?

I am not able to answer these questions today, but I will dedicate myself to an appropriate and open process that will address these questions and shape these programs to enhance our national return on investment.

In the past, Congress has viewed DOE's commitment to conservation and renewable energy with some suspicion, and there has been some justification for that. As a result, Congress has taken an active role in directing the course and content of DOE's programs. Let us begin today a new effort to work cooperatively to achieve the goals we all share and provide DOE's new management with the flexibility we need to execute the programs to the best effect.

One aspect of preserving America for future generations must be appropriate, long-term investments in our energy future with stable, predictable funding paths and policy.

Mr. Chairman, if confirmed, I look forward to working with members of this committee and other members of Congress to develop and implement a credible, national energy policy that will support an appropriate contribution from both conservation and renewable technologies.

Thank you very much.

[The prepared statement of Mr. Davis follows:]