TESTIMONY OF ROBERT W. GEE, NOMINEE TO BE ASSISTANT SECRETARY FOR POLICY AND INTERNATIONAL AFFAIRS, DEPARTMENT OF ENERGY

Mr. GEE. Mr. Chairman, I have no family members with me today. My wife unfortunately is in Austin, Texas, and could not be with us today, but she asked me to convey to you that she is with us in spirit today.

[The prepared statement of Mr. Gee follows:]

PREPARED STATEMENT OF ROBERT W. GEE, NOMINEE TO BE ASSISTANT SECRETARY FOR POLICY AND INTERNATIONAL AFFAIRS, Department OF ENERGY

Mr. Chairman and members of the committee, I am honored to appear before this Committee today as the President's nominee for Assistant Secretary for Policy and International Affairs at the Department of Energy. I also wish to thank President Clinton for his confidence in me, as well as Secretary Peña for his support.

The position for which I have been nominated requires my counsel and leadership for the Secretary and the Department in establishing and improving policies and programs centered on the Department's mission in the areas of energy resources, science and technology, the environment, and national security. My responsibilities will include identifying, developing, and analyzing salient issues; defining long-term goals, objectives and priorities; and working with program offices to implement priorities. I pledge to this Committee and the Senate a commitment to work diligently in this regard, always cognizant of the need to adhere to the public's demand for efficient and accountable government.

I bring to this Administration nearly two decades of diverse professional experience in the public and private sector focused primarily on the energy industry. I believe that my background will enhance the Department's policy deliberations by offering a valuable and fresh perspective:

Very early in my career I served as an attorney with the Federal Energy Regulatory Commission (FERC) where I participated in proceedings that led to the eventual deregulation of the natural gas sales market for interstate pipelines.

Upon my return to Houston, Texas-my hometown-I served as an in-house attorney for a major oil and gas company providing advice to facilitate the production and sale of natural gas.

As an attorney in private practice, I advised natural gas pipeline clients during the difficult transition period that saw the initiation and successful implementation of the FERC's open-access, nondiscriminatory transmission policy for the interstate natural gas pipeline industry.

Finally, and most recently, as the Chairman and a Commissioner for the Public Utility Commission for the State of Texas-the state agency that regulates the electric utility industry-I have been intimately involved in developing and adopting policies and practices that have opened our wholesale electric markets to competition, and have been active in recommending to our legislature measures on how best to introduce retail competition. My term of office at that agency expired last month. As members of this Committee may be aware, in my most recent responsibility I also have been active in the National Association of Regulatory Utility Commissioners (NARUC) by serving as Chairman of its Committee on Electricity. NARUC represents the collective interests of the numerous state public utility commissions. In that capacity, I have been asked, and thereby honored, to appear before this Committee on multiple occasions to testify concerning NARUC's position on proposed federal legislation to restructure the electric utility industry, and to opine about both the market and industry structural changes currently underway and the various state legislative and regulatory responses thereto. Although I have not been involved to date in the development of this Administration's position on electricity restructuring, I look forward to engaging actively in the discussion if I am confirmed to this post.

In addition to my substantive energy policy background, my work history also includes significant experience in public administration and management. As the Chairman of a major state agency with over 200 full-time employees, I led our commission through two legislative "sunset review" processes whereby we were called upon to rejustify the agency's existence and mission. We did more than survive these reviews; the agency emerged with a renewed and enhanced legislative mission to oversee the introduction of greater competition in the two industries it regulates-electricity and telephone. In addition to this accomplishment, I also success

fully prepared and defended our agency's budget through two biennial legislative sessions.

As a former state official, I am in great sympathy with those who ask that federal policies be respectful of and be balanced with state policies and prerogatives. I believe that both these levels of government must always seek to work collaboratively and harmoniously toward the achievement of common objectives. This admittedly is not an easy task. Numerous stakeholders in addition to the states cry for fairness and equity in the apportionment of our nation's financial and natural resources and in the prioritization and development of policies all aimed at fulfilling the national interest. The Department of Energy, the Congress and our country has been and will for the foreseeable future be confronting a host of highly contentious issues against the backdrop of an increasingly interstate and global energy market where environmental and national security concerns are both ubiquitous and escalating.

As Assistant Secretary for Policy and International Affairs, I would serve as the primary policy advisor to the Secretary and the Department on national and international energy policy matters and on Department strategic planning. I believe the Policy Office should play a critical role across individual programs to ensure that Departmental resources are continuously tied to national priorities and that Department efforts are focused on specific delineated missions. I understand that an office of this nature needs strong management to address a variety of policy challenges and strong leadership to promote effective solutions. Armed with my prior experience, I pledge this type leadership.

I deeply appreciate the Committee's time and consideration of my nomination, and I look forward to entertaining your questions. Thank you.

The CHAIRMAN. All right. That is fair enough.

Mr. Reicher.

TESTIMONY OF DAN WILLIAM REICHER, NOMINEE TO BE ASSISTANT SECRETARY FOR ENERGY EFFICIENCY AND RENEWABLE ENERGY, DEPARTMENT OF ENERGY

Mr. REICHER. Mr. Chairman, I'd like to introduce first my mother of 41 years, Phyllis Reicher.

[Laughter.]

Mr. REICHER. That's not her age, an extraordinary woman who has raised 5 children and as a teacher inspired hundreds more; my wife, Carole, a wonderful spouse, mother, and colleague at the Department of Defense; my brother, Andrew, who is the director of a housing organization in New York City; my sister, Eden Anker, an advisor, a friend and a confidante and the mother of Alyssa, who is here with us today as well; and also a lifelong friend of mine, Steven Galson, a senior medical officer in the Public Health Service; my executive assistant, Vernellia Johnson; and my friends Lou and Vee Swafford.

Thank you.

[The prepared statement of Mr. Reicher follows:]

PREPARED STATEMENT OF DAN WILLIAM REICHER, NOMINEE TO BE ASSISTANT SECRETARY FOr Energy Efficiency and Renewable Energy, Department of ENERGY

Mr. Chairman and members of the committee, I am honored to appear before this Committee as the President's nominee to be Assistant Secretary of Energy for Energy Efficiency and Renewable Energy. The Energy Efficiency and Renewable Energy (EERE) program advances important economic, environmental and national security objectives. The program improves U.S. economic competitiveness by decreasing energy costs for U.S. businesses and by promoting rapidly growing domestic and international markets for clean energy technology. It advances environmental quality by reducing pollution in the production of energy and by increasing the efficiency of energy use. It increases our national security by reducing dependence on foreign energy sources. And it improves the quality of life for our citizens by making our homes, offices and factories less costly to operate, more comfortable to live and work in, and less harmful to human health and the environment.

Over the last decade the EERE program has accomplished a great deal in partnership with industry, national laboratories, universities, state and local governments, the environmental community and the public. The program has helped the nation save billions of dollars in energy costs, decrease pollution from industry and transportation, reduce the price of renewable energy sources, and enhance the use of alternative fuels. It has made substantial progress in key areas, from advanced turbines, electric vehicles, natural gas technologies, cleaner manufacturing, and more efficient buildings and appliances to solar, wind, hydropower, biomass, fuel cells and geothermal energy..

However, while it has achieved much, the EERE program is not without its problems. As I see it, the challenge is to shape a program that advances the objectives outlined above in a more efficient and effective manner. To do so, there are three priorities we must tackle.

First, we must have a program that is in better control financially and managerially. The EERE program is entrusted annually with close to one billion in taxpayer dollars. Many improvements have been made over the last several years in how the program budgets and spends these funds, but we can do better. Program spending is not always targeted to achieve the "biggest bang for the buck." The cumbersome procurement process can hamper important R&D work in the private sector. Overhead and "uncosted balances" must be further reduced. Some program offices are not organized to maximize their effectiveness. I pledge, if confirmed, to undertake immediately a targeted review of key financial and management issues in the program and make appropriate changes.

Second, we must have a program that is more outcome-oriented. Much has been achieved in performance-based management over the last several years in the EERE program. But still too often the program measures its success in terms of process: reports, meetings, web-sites, publications. Instead, the program must chart its progress in terms of results: technologies developed and deployed, energy saved, pollution reduced, and costs lowered. It must find more cost-effective and creative means to advance R&D, to build domestic and international markets and to set standards. I pledge, if confirmed, to instill in the program a greater emphasis on results and attention to the bottom line.

Third, we must develop a more dynamic partnership between the Department of Energy and those industries, institutions, and individuals who have the ability to help us advance the program's important energy, environmental and economic objectives. We will be more agile partners with industry and universities; we will continue to build our important relationship with states and cities; we will improve our coordination with other energy and environmental programs within the Department and across the federal government; we will pursue our work with international institutions; and we will ensure a productive relationship with the environmental, consumer and low-income community.

To our supporters, we owe clear programmatic objectives, a defensible budget, and partnerships that minimize bureaucracy and maximize results. To our critics, we owe an open-door policy, timely response to requests for information, and soundlybased measures of success. To everyone, we must do a better job of explaining what we do and why we do it. And to Congress and members of this Committee I pledge a straightforward commitment to work hard, to be responsive to your concerns, and to accept responsibility for my actions.

I bring to the job almost twenty years of energy and environmental experience and significant management background. I have been in the senior ranks of the Department for almost five years in various positions including Senior Policy Advisor to Secretary Peña, Chief of Staff, Acting Assistant Secretary for Policy and Deputy Chief of Staff. I have gained important experience with budgeting, personnel, procurement, legislative relations, and public affairs that would serve me well in leading the EERE program. Equally important, I have earned the confidence of a broad range of people inside and outside the Department.

Prior to DOE, I served in various capacities including as an attorney with the Natural Resources Defense Council, Assistant Attorney General for the Commonwealth of Massachusetts, Adjunct Professor at the University of Maryland Law School, Law Clerk to U.S. District Court Judge David Nelson, Staff Member of the President's Commission on the Accident at Three Mile Island and Paralegal with the U.S. Department of Justice. Together these positions have given me a solid base from which to lead the EERE program: a strong command of energy and environmental policy and technology, a substantial background in legislative and regulatory processes, and significant experience with resolving complex issues.

I believe I am up to the challenge of helping the EERE program become more effective and efficient in discharging its important duties on behalf of Congress, the

Administration, and the American public. I look forward to the challenge-and the opportunity.

The CHAIRMAN. Well, you brought quite a few reinforcements, more than we can accommodate. Good morning. We are happy you are here.

Mr. Angell.

TESTIMONY OF JOHN C. ANGELL, NOMINEE TO BE ASSISTANT SECRETARY FOR CONGRESSIONAL AND INTERGOVERNMENTAL AFFAIRS, DEPARTMENT OF ENERGY

Mr. ANGELL. Mr. Chairman, I am pleased today to have my mother, Margaret Angell, from the local area, my father, James Angell, my wife, Martha Casey, and my young daughter Sarah Angell, right back here.

[The prepared statement of Mr. Angell follows:]

PREPARED STATEMENT OF JOHN C. ANGELL, NOMINEE TO BE ASSISTANT SECRETARY FOR CONGRESSIONAL AND INTERGOVERNMENTAL AFFairs, DepartMENT OF ENERGY Mr. Chairman, members of the Committee, it is an honor to be here today as President Clinton's nominee for Assistant Secretary for Congressional and Intergovernmental Affairs at the U.S. Department of Energy. I want to express my appreciation to the President and the Secretary of Energy for their support of my nomination. I believe my background as a congressional staffer for twelve years, including four years as staff director of the House Budget Committee, my experience as Executive Associate Director at the Office of Management and Budget, and as a Senior Policy Advisor to the White House Chief of Staff has been an excellent preparation for this position. The main focus of my responsibilities during the past 16 years has been on Federal budget policy, consequently I have worked on a broad array of Federal policy issues. My budget focus has also resulted in work on a number of important issues related to the Department of Energy.

I have also had the privilege of being a Senior Policy Advisor to Energy Secretary Federico Peña over the past six months, time spent intensively learning more about the Department's challenges and opportunities.

As you know, the Energy Department encompasses a number of very complex Federal activities. The Department's responsibility for overseeing the energy sector of our nation is critical. Reducing the vulnerability of the U.S. economy to disruptions in energy supplies is a tremendous challenge, requiring greater emphasis on energy research and development, maintenance of an effective Strategic Petroleum Reserve, development of more efficient vehicles, and pursuit of additional international energy reserves. The defense programs within the Department are a key to our national security-we must maintain a safe and reliable nuclear stockpile. It is also clear that the nonproliferation activities of the Department are becoming more important every year. The scientific and technological abilities of the Department and its labs are unsurpassed and a source of great excitement to our Department of Energy team. Finally, the Department's nuclear waste clean-up and environmental management activities are among the most difficult tasks in government. Ensuring that the Department communicates effectively with Congress and state and local government on all of these important responsibilities is a challenge I enthusiastically accept.

I believe my experience on budget issues has prepared me well for bipartisan interaction with the Congress on Energy Department issues. During my years of work in the Congress I was actively involved in reaching bipartisan consensus on a number of major budget agreements: the Gramm-Rudman bills of 1985 and 1987, the budget agreement reached with the Reagan Administration in 1987 after the stock market crash in October of that year, the 1989 budget deal with the Bush Administration and the 1990 budget deal with congressional Republicans and the Bush Administration. I think this extensive experience will serve me well at a time when the Administration and the Congress are controlled by different political parties.

I pledge to establish effective lines of communication between the Department and the Congress. As you know, the Department's responsibilities are diverse and involve complex issues. Clarity of communication between Congress and the Department is critical to ensure that the Department can fulfill its mission consistent with

the wishes of Congress. And in my experience, even disagreements over policy are more effectively dealt with if the Congress and the Department understand the substantive positions of each other. Facilitating that process of understanding will be my job should I be confirmed.

I also intend to establish and maintain excellent lines of communication between the Department of Energy and state and local government. The Department's activities have a tremendous impact on communities all over the nation. The Department owes these communities accurate and timely information about our policies and our plans for the future.

Again, I want to thank the Committee for this opportunity to appear. I very much look forward to working closely with you in the future.

The CHAIRMAN. Sarah is where? There she is.

Mr. ANGELL. She won't be with us long, Mr. Chairman.

The CHAIRMAN. We might hear from her if we go on too long.
Mr. Telson.

TESTIMONY OF MICHAEL L. TELSON, NOMINEE TO BE CHIEF
FINANCIAL OFFICER, DEPARTMENT OF ENERGY

Mr. TELSON. Mr. Chairman, I have no members of my family I'd like to identify, but want to acknowledge the wishes of good friends who are here. Thank you.

[The prepared statement of Mr. Telson follows:]

PREPARED STATEMENT OF MICHAEL L. TELSON, NOMINEE TO BE CHIEF FINANCIAL

OFFICER, DEPARTMENT OF ENERGY

Mr. Chairman and Members of the Committee, I am honored to appear before you today as President Clinton's nominee for Chief Financial Officer of the U. S. Department of Energy. I also appreciate the confidence Secretary Federico Peña has placed in me. Secretary Peña has made clear his insistence on the highest standards of fiscal discipline and his desire to improve the effectiveness and efficiency of the Department's programs. I look forward to this challenge.

I would like to summarize my background and give you some sense of what I would hope to accomplish as Chief Financial Officer, if confirmed by the Senate. I was born in New York City, but grew up in Cuba, the son of a Cuban father, originally from Europe, and an American mother. After Cuba, I finished high school in Miami Beach and then went to MIT where my degrees included a doctorate (Ph.D.) in electrical engineering, as well as a Master's Degree in management from the MIT Sloan School of Management with a concentration in finance.

For a long time I have been deeply interested in the scientific and engineering programs that drive the Department's budget, as well as in the management systems required for the operation of this large and complex organization. I have been in Federal public service for 24 years working on energy and science issues from a budget, finance and economics perspective. I feel as if I have come full circle since 1973 when I became a Congressional Fellow of the American Association for the Advancement of Science (AAAS) working on the staff of this Committee's predecessorthe Senate Committee on Interior and Insular Affairs. Shortly after I started, the 1973 Oil Embargo occurred. I decided after my fellowship year that I needed to spend a little longer working for the Congress and accepted a position with the new House Budget Committee, where I hoped to integrate my policy interests with my budget interests.

At the House Budget Committee I last served as the Senior Analyst for energy and science, which included responsibility for the Department of Energy (DOE), the National Aeronautics and Space Administration (NASA), and the National Science Foundation (NSF). This position allowed me to become involved with the formulation of energy policy issues during a critical time. In 1977-79, I concurrently served as the staff economist to the House ad hoc Committee on Energy, created to enact the National Energy Act of 1978. In 1979-80, I also served as Staff Coordinator to Speaker O'Neill's Task Force on Energy. Over these years, I was fortunate to serve many distinguished Committee Chairmen, and I would like to mention Robert Giaimo, and Thomas Ludlow Ashley who were particularly important mentors. I also had the opportunity to work with the staff to this Committee on many occasions.

I have been at the Department of Energy since 1995, where I was privileged to serve as a Special Assistant to Deputy Secretary Charles Curtis, and currently serve