Now for the very pleasant task at hand. Very few nominations are approved by everyone, but the nomination of Hazel O'Leary has received particular acclaim all around this town and, I hope I can predict, on this committee.

Hazel, as most of you know, was Administrator of the Energy Regulatory Administration. Back in the old days of price controls that was a tremendously important and difficult job to handle, which she did with great skill. She has had various other jobs in the Energy Department.

She was married to one of the greats of the Energy Department, Jack O'Leary, who was Deputy Secretary of Energy, a great friend of mine, and one of the best we ever had, as all of you who knew Jack will know.

So it is a particular pleasure to have Hazel O'Leary nominated as Secretary of Energy, someone with great experience in energy, with great depth and background, and tremendous skill. It is well that the nomination would be of someone of tremendous skill, because the task of the new Secretary of Energy will be very, very difficult. She must implement the new Energy Policy Act, which covers everything in energy from soup to nuts.

I have seen the plan which was prepared by Admiral Watkins, the preliminary plan, and it is extensive, that which must be done to implement that bill, a probably more formidable task than to have been here when we put the bill together, as difficult as that was. We will face that monumental task of waste cleanup at our former defense installations. Other than the fact that there are no standards and no technologies at this time to clean up these sites, it will be a very easy task.

[Laughter.]

The CHAIRMAN. The budget right now is over $6 billion, with thousands and thousands of employees very quickly growing, and as I say, no standards of technology. All of that must be accomplished along with the management of the Yucca Mountain site, the Waste Isolation Pilot Plant.

We must make decisions on nuclear fusion, whether to enter ITER, the International Tokamak Experiment, which is expected to be at this time a $7 billion undertaking internationally on nuclear fusion, which will be a tremendous and difficult task, to negotiate the international arrangements with that.

In short, there is a tremendous amount to be done, but our new Secretary-designate I believe is going to be equal to the task. [The prepared statement of Senator Johnston follows:]

PREPARED STATEMENT OF HON. J. BENNETT JOHNSTON, U.S. SENATOR FROM

LOUISIANA

Good morning. Today the Committee will consider the nomination of Hazel Rollins O'Leary to be Secretary of the Department of Energy. Hazel is well and favorably known to this Committee, and I am pleased to welcome her back here. I am also pleased to welcome here today Hazel's mother, Hattie Reid, and her son, Carl Rollins.

The position of Secretary of Energy is one of the most important jobs in the Federal Government. The Department of Energy has a critical role to play in the Administration's plans for economic recovery as well as its traditional role in the development and maintenance of energy supply for the future. Development of a sustained and balanced energy policy-coupled with careful utilization and management of the assets of the Department of Energy-will be critical to the Administra

tion's near-term efforts to stimulate economic growth and international competitive

ness.

The position of Secretary of Energy will also be a very challenging one. It will take strong management skills and a strong will to get things done. It will take a commitment to developing a balanced energy policy that recognizes the need for both efficiency measures and a diversity of supply. It will require an ability to juggle at the same time the many issues facing the Department that are not strictly related to energy supply.

There are many daunting tasks that await the Secretary of Energy-cleanup of the nuclear weapons complex, effective management of the civilian nuclear waste program, and development of an effective partnership between the national laboratories and private enterprise, to name just a few of them. The nuclear weapons complex, civilian nuclear waste, and the national laboratories account for a significant portion of the Department of Energy's annual budget. Each of these areas will present the Secretary of Energy with a significant and unique challenge.

I am extremely pleased with president-elect Clinton's selection of Hazel O'Leary for this important position. Hazel has an impressive background in the energy business, and she is a savvy and competent professional. If anyone can succeed at this position and solve the many problems facing the Department of Energy—I am certain that Hazel can.

The quality of people in the positions supporting the Secretary will also be extremely important. This nomination must be followed by the naming of equally qualified and committed professionals for the subordinate positions within the Department. It will be important to fill these positions with people that you can trust and that share your commitment to success.

One of the most important tasks facing you as Secretary will be managing_the cleanup of the environmental problems of the Department's nuclear facilities. Estimates of the total cost of cleanup range as high as $150 billion. Annual expenditures are in the range of $5 billion. One of the most difficult challenges in this program will be to establish priorities for cleanup that will ensure that the worst environmental problems are cleaned up first. In establishing priorities, it will also be necessary to develop realistic and sensible standards for cleanup and to make decisions on the extent of cleanup and schedules for cleanup based upon the risk involved.

Equally important to your success at the Department of Energy will be effective management of the civilian nuclear waste program. You have seen first-hand the problems of the nuclear waste program from the perspective of a utility customer. From your own experience, you know all too well the waste of money in this program and the need for improvements in its management. With each year, this program gets more expensive and its schedule for completion gets further away. We simply must structure this program in a way that it can succeed on a timely schedule.

The Department of Energy is the federal government's largest employer of scientists and engineers and owns the nation's premier laboratories and facilities for basic science. These laboratories and the Department's role in science-have evolved over time from a primary emphasis on nuclear weapons development to a broader role in the development of technology across the full spectrum of fundamental sciences. These laboratories are on the brink of change in how they operate. Properly managed, the tremendous assets of the national laboratories can ensure the continued preeminence of American science while also making a major contribution to the Administration's efforts to stimulate economic growth and competitiveness. To accomplish these goals, we must develop an effective partnership between the national laboratories and the private sector.

Competition for federal dollars for science throughout the Federal government will be keen over the next several years. The Department has within its purview some of the most advanced facilities and programs of the entire Federal government. Many of these programs have the potential both to keep the United States at the forefront of science and to enhance U.S. competitiveness. As competition for federal dollars becomes more fierce, the Administration will have to develop priorities for science. The Department will need to play a key role in the development of those priorities and ensure that the science projects of the Department are not overlooked.

Finally, the Energy Policy Act of 1992 contains major new initiatives and farreaching provisions affecting almost every aspect of energy policy. Effective implementation of these provisions will be a challenge, and there will be severe competition for limited federal dollars. You will need to find the right balance and level of support for these programs. The Energy Act provisions in energy efficiency, renew

able energy, alternative fuels, and global climate policy, taken together with the Clean Air Act Amendments, represent the most significant programmatic response by any nation to the Treaty on Climate Change signed in Rio. Success at the implementation of these provisions will be especially important.

The CHAIRMAN. Now for the very pleasant task of introducing her I am glad first to recognize-oh yes, before we have her introduced, may I first recognize the distinguished ranking minority member of the committee, Malcolm Wallop.

STATEMENT OF HON. MALCOLM WALLOP, U.S. SENATOR FROM

WYOMING

Senator WALLOP. Thank you, Mr. Chairman. These seats are so low up here, it is not surprising I was unnoticeable.

[Laughter.]

Senator WALLOP. I can barely see the nominee up here. [Laughter.]

Senator WALLOP. I want to join you in welcoming Hazel O'Leary. She is no stranger to this committee, having testified before us even on events as recently as the passage of the energy policy and strategy.

I want to say first of all hats off to the new administration for choosing somebody to be Secretary of Energy who knows something of the energy industry. I hope that the monumental task, as you have described it, of implementing the Energy Policy Act is challenging, even more challenging than establishing a Department of Energy with no energy policy was.

We now have some guidelines or purposes, some of which_the nominee was good enough to counsel us on, and whose counsel we took, or at least I think we did-we tried to and I was encouraged as well by your remarks in your acceptance on December 12, when you stated "that there are natural and physical limitations to efficiency conservation and renewables. People will come to realize that you need a supply strategy as well."

We hope that we encourage that in the Energy Policy Act. More, I think, needs to be done, but it is a clear statement of philosophy which I think is important as you take on this most important task, and the challenge does not stop with just the Energy Policy Act, as you well know. There are many other responsibilities of the Secretary of Energy.

They extend to the administration of the national laboratories, which are the crown jewels of America's scientific research capability, and there is the administration of the Federal Government's nuclear weapons production facilities. Though most people would like to think that that is an era that has vanished, it has simply not, and it requires an able and probing mind to figure out what is the best thing for us.

I have a lot of confidence, Ms. O'Leary, in you, and the conversation that we had was encouraging. I hope that you will see this committee as a player and not just a housekeeping committee. We have, I think, demonstrated very well that this committee is creative and responsible. There would not have been, indeed, an Energy Policy Act had it not been for Chairman Johnston and the bipartisan nature of this committee seeking to establish policy.

Bennett mentioned the other things, such as Yucca Mountain and the initiatives of technology transfer. I hope, too, that we move along quickly with the divestiture of the Department's uranium enrichment enterprises and that we get quickly into standardization of nuclear design so that perhaps America, if it is as interested in global warming as it states it is, that we can have safe, reliable, and dependable nuclear power as a part of that mix.

In all, I just want to say welcome. I am glad you are here. I admire this choice, and I do not know why you would take it, with 5 years denied you after you leave here, to go back to the one area in which you are an expert, but I think the Nation will be grateful that you have.

[The prepared statement of Senator Wallop follows:]

PREPARED STATEMENT OF HON. MALCOLM WALLOP, U.S. SENATOR FROM WYOMING Good Morning! It is a Pleasure to join my distinguished colleague, Senator Johnston, in welcoming Hazel O'Leary to the Committee. In nominating her as Secretary of Energy, Governor Clinton has selected someone with solid qualifications.

The Department of Energy is at a critical juncture in its history. With enactment of the 1992 Energy Policy Act, the 102nd Congress and the Bush Administration redefined DOE's charter and set it on a course to meet the challenges of the next century. Whether it gets there or not rests on the leadership of the next Secretary of Energy.

The Energy Policy Act of 1992 contains many of the necessary reforms to assure sustainable economic development. This bipartisan agreement recognizes that an expanding national and global economy requires that America rely both on energy production and increased efficiency and conservation.

From this perspective I was encouraged by your December 12th acceptance remarks when you stated,

Our energy policy decisions are central to creating jobs, to maintaining the health of our nation's economy, and to improving the quality of our environment. The experience that I have has taught me that balance is essential in effective public policy, and most essential in making energy policy. We've got to utilize the wide range of demand-side and supply-side options to ensure adequate supplies of energy resources at reasonable and environmentally correct costs.

You then observed,

That eventually we are going to discover that there are natural and physical limitations to efficiency, conservation and renewables. People will come to realize that you need a supply strategy as well.

This reality is reflected in the Energy Policy Act of 1992 which provides a longterm, comprehensive, and consensus-based energy policy for the United States. The Act sets forth an energy strategy that will further our national security, create American jobs, help our balance of payments, and lessen our dependence on foreign energy markets and international cartels.

But the challenge doesn't stop there. The responsibilities of the Secretary of Energy are not limited to just the administration of a national energy policy. They extend to administration of our national laboratories, the crown jewels of our nation's scientific research capabilities, and administration of the Federal government's nuclear weapons production facilities.

The environmental issues associated with the operations and decontamination of these facilities are numerous. Many of these facilities are more than 45 years old. Under Admiral Watkins, significant steps were taken to bring this situation under control; however, the task of bringing them into compliance with contemporary environmental requirements will confront the Department for many years.

The role of The Secretary within the decision making process in the Clinton Administration is pivotal to the success of all of these missions. As the nominee knows from her own experience, there is an ongoing balancing act between legitimate environmental concerns and legitimate energy or economic concerns. There are also ideas floating about that are just plain stupid.

As the Secretary of Energy, this Committee would expect you to be the voice of reason in the forefront of those debates. For example, such misguided proposals as a carbon tax will have significant, adverse employment, energy and trade competitive implications for the United States. Similarly, proposals to eliminate development of advanced, passively safe, nuclear reactor designs are short-sighted and exhibit a lack of vision for the long-term energy security and environmental well-being of the Nation.

Too often we overlook the economic, social and energy costs of our environmental policies. By our failure to consider the cost-effectiveness of our policies we incur an unnecessary dampening of the marketplace and a loss of competitiveness internationally. A reconciliation of environmental and energy policies is needed in order to assure sustainable economic development and international competitiveness.

As you are aware, significant benefits can be derived from the United States export of new energy technologies such as clean coal technologies as well as renewable and energy efficiency technologies. The 1992 Energy Policy Act, for the first time, places significant responsibilities in the Secretary of Energy in this regard. As Secretary of Energy, I encourage you to give priority to establishment of the necessary interagency mechanisms so that the United States can realize the full economic, employment and trade potentials of these technologies.

I am also interested in a number of other critical issues which you will immediately face as Secretary. Among the priority concerns facing you will be implementation of the Uranium Enrichment Corporation statutes. The Administration also needs to conclude the arrangements necessary for DOE's purchase of weapons grade uranium from Russia.

Equally important is the timely characterization of the nuclear waste site at Yucca Mountain. The Federal government needs to fulfill its commitment to the American people to provide for the long-term disposal of nuclear waste. It is critical that evaluation of the suitability of the Yucca Mountain site proceed as expeditiously as possible.

Among the other critical issues of concern to me are the issues surrounding energy consumption; initiatives in the areas of energy supply and production; and technology transfer.

In addition, there are the Department's nuclear weapons programs that are not within the jurisdiction of this Committee. These programs require a special expertise that is not reflected within your areas of experience. It therefore is critical that you have access to the necessary expertise and advisors so that you can effectively carry out your national security duties and responsibilities.

In closing, I would observe that our nation has made significant progress in the formulation of a national energy strategy since the shortages of the 1970's. We have learned that the command-and-control policies of that period did not work. The Energy Policy Act of 1992 reflects that experience. Congress and the Administration must resist the temptation to again try to dictate specific human behavior.

Let me say that I don't envy you in the task ahead. I hope we can move forward together as partners, with candor and cooperation as our hallmark.

The CHAIRMAN. Senator Bumpers.

Senator BUMPERS. I do not have an opening statement, Mr. Chairman.

The CHAIRMAN. Senator Hatfield.

STATEMENT OF HON. MARK O. HATFIELD, U.S. SENATOR FROM

OREGON

Senator HATFIELD. Mr. Chairman, I, too, join in welcoming Ms. O'Leary to this committee, and to assure Ms. O'Leary that there is a partnership here, there is a partnership for cooperation for achieving the continued goals that we have put before us, and yet we fall short because of time.

Let me just indicate that in 1980 this committee passed what came to be known as the Pacific Northwest Power Act, and for the first time in the history of legislation the committee adopted an amendment that put conservation as equivalent to a new source of energy, committing this Northwest Power Act to the proposition that conservation should be a high level goal.