GRUMBLY, ALM, COBURN, AND BURTON NOMINATIONS TUESDAY, MARCH 5, 1996 U.S. SENATE, COMMITTEE ON ENERGY AND NATURAL RESOURCES, Washington, DC. The committee met, pursuant to notice, at 9:35 a.m., in room SD-366, Dirksen Senate Office Building, Hon. Frank H. Murkowski, Chairman, presiding. OPENING STATEMENT OF HON. FRANK H. MURKOWSKI, U.S. SENATOR FROM ALASKA The CHAIRMAN. Good morning. We will call the committee to order. Today the committee will hear testimony from the President's nominees as follows: Thomas P. Grumbly to be the Under Secretary of the Department of Energy; Alvin L. Alm to be Assistant Secretary for Environmental Management at the Department of Energy; Charles William Burton to be a member of the Board of Directors of the U.S. Enrichment Corporation. Each nominee has submitted all the information required by the committee-and we have one more: Christopher Coburn to be a member of the Board of Directors of the U.S. Enrichment Corporation. I understand that each nominee has submitted all the information required by the committee; is that correct? And in an effort to move this hearing along, I do not intend to make any further opening statements other than to welcome each nominee to the commit tee. I believe that we have the Coburn family. Would you like to introduce Mrs. Coburn? Mr. COBURN. This is my wife Nancy, my daughter Caroline, my son Sean. The CHAIRMAN. Good. You have got your tickets to eternity here this morning, is that right? And Mr. Grumbly? Mr. GRUMBLY. Yes, Senator, I have my wife Judy and my Peg and Ed Pusay. The CHAIRMAN. Good. You have got the whole family. Senator Johnston. STATEMENT OF HON. J. BENNETT JOHNSTON, U.S. SENATOR FROM LOUISIANA Senator JOHNSTON. Thank you, Mr. Chairman. Mr. Chairman, we have two new DOE nominees here. I say new nominees. Tom Grumbly is not new to the Department, nor is Al Alm. But we are extremely fortunate to have both of these nominees. Why anyone would want to go into that sticky wicket of one of the most difficult, impossible areas of all the Federal Government, I do not know. But we are very fortunate that we have them both. Tom, of course, has done just an outstanding job and is now being given a promotion. He has done an outstanding job even though the law that he has had to administer made him do impossible things, with impossible time lines, with nonexistent technology, and with the threat of putting him in jail if he did not get it done. But maybe he is getting out at this time so that he will not go to jail and let Al go for him. Of course, Al Alm was one of Schlesinger's top people back when we created the Department, and we worked with him back in the 1970's. And I must say he was one of the brightest stars back at that time, and I am sure he will be at this time. I just cannot say enough about how lucky we are with both of those. And by the way, I have a written statement that goes into some other issues, which I hope you will read. I would like to put in the statement at this time. The CHAIRMAN. It will be entered into the record. [The prepared statement of Senator Johnston follows:] PREPARED STATEMENT OF HON. J. BENNETT JOHNSTON, U.S. SENATOR FROM LOUISIANA I strongly support all four nominees before the Committee this morning. Tom Grumbly has performed admirably in an impossible job. The laws governing the cleanup of DOE facilities required him to meet unattainable standards, to use nonexistent technologies, to meet impossible deadlines, to employ unnecessary workers, and to do it all without adequate funds. To top it off, we threatened to put him in jail if he failed. Tom did not fail; he made the most of a terrible situation. He did not finish the job; no one could have. It will take decades and hundreds of billions of dollars to complete. But he has dealt with the most pressing problems and he has brought what was a run-away program under some measure of control. I am particularly pleased with the efforts to reduce costs which have occurred in the cleanup program under Tom's direction. Perhaps most impressive is the reduction in the proposed schedule for cleaning up Fernald from 25 years to 10 years, at an estimated savings of $2.4 billion. Central to the approval of that compressed schedule was acceptance by the local community of a plan to dispose of certain very low-level wastes in a disposal cell at the site. This eliminated the need to find an alternative disposal site for these wastes, which eliminated the need for costly transportation and disposal fees. Among other things, this speaks well of the public outreach program the Department has in place at Fernald. Yet the option of on-site disposal does not exist at every site or for every waste stream. Some sites are not ideally suited for waste disposal. Many communities are opposed to long-term storage or disposal of wastes at their sites. For both of these reasons, we need to move significant quantities of waste off site. This is why progress at Yucca Mountain is so important. Many of the wastes streams from the weapons complex are high-level wastes that can only go to the kind of disposal facility we envision at Yucca Mountain. I am hopeful that we will legislate on that subject in the near future. Other waste streams, such as mixed and low-level waste, present a different challenge. With regards to their storage and disposal, I am particularly pleased with the Department's willingness to consider private sites. These sites necessarily have the public support that is so often lacking at government owned sites. And, because they are private, they are forced to be cost competitive. Thus, these facilities may be in a position to dispose of mixed and low-level wastes earlier and cheaper than other alternatives. I am aware that there are several private waste disposal facilities either contemplated or in existence. I am pleased that the Department appears poised to make use of these facilities, and would urge both DOE nominees to do what they can to encourage these facilities in any way possible, including referencing them in the Department's waste management programmatic environmental impact state ment. Al Alm is superbly suited to carry on this important work. He has an outstanding record of achievement in both government and the private sector. He was present at the creation of both the Council on Environmental Quality and the Department of Energy. He was one of Secretary Schlesinger's top lieutenants at DOE. He has held senior management positions at EPA and in private industry. We are extremely fortunate to be able to recruit someone of Al's broad experience and deep knowledge for the environmental management job. I am also pleased to support both Bill Burton and Chris Coburn's appointments to the board of directors of the United States Enrichment Corporation. The Corporation is entering a critical period. Hopefully, Congress will pass legislation to privatize the Corporation this year. The Corporation will need a full compliment of directors as it negotiates the difficult transition into the private sector. Mr. Burton's expertise in international and energy law and Mr. Coburn's expertise in technology development and transfer programs will bring valuable perspectives to the Corporation's board. Finally, Mr. Chairman, I would like to note that I have received a letter from two members of the South Carolina legislature regarding Mr. Grumbly's unwillingness to enter into a political fray over the use of the Barnwell low-level waste facility. I have looked into this matter and am satisfied that Mr. Grumbly acted properly. I ask that you include in the record both the legislators' letter to me and Mr. Grumbly's written explanation. Senator JOHNSTON. I am also very pleased, Mr. Chairman, to support both Bill Burton and Chris Coburn for the USEC, the Ú.S. Enrichment Corporation. That is a very, very important enterprise and this is a vital time for it. Properly managed, I think they can save that enterprise, make a lot of money for the U.S. Government. Bad management, of course, could just sink the whole thing. For that reason, to have both of them here with their outstanding records and their knowledge of government, I think it is very fortunate for the Federal Government. So Mr. Chairman, this is one of the better confirmation hearings we will have, where we can really celebrate our luck and good fortune at having such good nominees. The CHAIRMAN. Thank you, Senator Johnston. Hopefully we have not scared any of the nominees off. Senator Domenici. STATEMENT OF HON. PETE V. DOMENICI, U.S. SENATOR FROM NEW MEXICO Senator DOMENICI. Thank you, Mr. Chairman. I join in praise of the foursome, as Senator Johnston has done. There has been a lot of criticism about the cleanup that DOE has undertaken. The Office of Cleanup is only 7 years old. I must say publicly that Tom Grumbly has done an outstanding job. I want to list the accomplishments of a positive nature that have occurred since he has been in charge. They are rather significant, and ultimately if we follow that lead we will begin to save money instead of throwing it away. I could not believe that, with his promotion (which I wholeheartedly support), that Al Alm would agree to serve. I have met with him and I think we are very fortunate. I hope he is committed to follow the same path that has been blazed in the past 2 years. Finally, we are beginning to see some real achievement and some performance requirements for those companies that are cleaning up the DOE sites, although we do not have a total dose of reality with respect to some of the agreements we have made with localities. Some are still far too open-ended and far too rich. But I think we are making headway. I would like to comment on the two nominees for the U.S. Enrichment Corporation and suggest to the committee that, after diligent work, we are within a month of getting the legislation passed that will sell the corporation for $1 billion. I believe there is accord both in the Senate and the House on the bill's language. We had one hangup that has been resolved. We put it in the balanced budget agreement, but if we cannot get that then I understand Senator Murkowski and Senator Johnston are going to attempt to pass it on some other bill. I say to my good friend from Connecticut who has worked hand in hand with us on this, we are about to see the job done. Senator FORD. I appreciate the compliment. I know you are talking to me, but it is Kentucky. Senator DOMENICI. It is Kentucky. The CHAIRMAN. It is early in the morning. Senator DOMENICI. I did know that and I am very sorry. I have been around here too long. The CHAIRMAN. The new kid on the block. Senator BURNS. The river changed channels or something? Senator DOMENICI. I assume you would agree nonetheless, Senator, from whatever State you come from that this is a rather outstanding achievement, and I assume these two board members are going to be part of the transition to a privately-owned company and I hope that works. Senator Ford, thank you, and I apologize. Senator FORD. That is all right. The CHAIRMAN. Pete, you had better quit while you are ahead. Senator Ford, would you like a rebuttal? STATEMENT OF HON. WENDELL H. FORD, U.S. SENATOR FROM KENTUCKY Senator FORD. No, I do not want a rebuttal. Anything Senator Domenici says I accept, except the State. Everything else you said, Senator, I agree with. Let me welcome all the nominees today. In particular, I want to express my support for the two nominees to serve on the board of the U.S. Enrichment Corporation. I thank you, Mr. Chairman, for scheduling these nominees in such a prompt manner. Mr. Chairman, as you know and just to endorse what my friend from New Mexico, Senator Domenici, has said, this is a critical period for the U.S. Enrichment Corporation. In the next few months it is important that they have a full functioning board at the USEC as they move forward to privatization. Mr. Burton was approved by this committee only a few months ago and is now back for renomination to the board for a full term. I believe both he and Mr. Coburn will make valuable additions to the board. Mr. Coburn has been by the office, visited with staff, and we are very high on his nomination. I know the chairman and others on this committee share my desire that the transition be as smooth as possible, and I would urge the quick approval of these nominees by this committee. It is my understanding-and I go back to an old Kentucky saying-if you think you have got the votes, then stop talking. That is the end of my statement, Mr. Chairman. The CHAIRMAN. Thank you. Senator Craig. STATEMENT OF HON. LARRY E. CRAIG, U.S. SENATOR FROM IDAHO Senator CRAIG. Well, with that admonishment I will be very brief. But again, Mr. Chairman, thank you for moving these nominees quickly. Let me join with my colleague from New Mexico in the recognition of all of the individuals before us. Let me especially single out Tom Grumbly, who I have had the privilege of working with over the last couple of years as Idaho has negotiated what I think is a precedent-setting agreement with the Department of Energy as it relates to the handling of radioactive materials, both transuranic and high-level materials. I think that is important for Idaho. I think it is important for the DOE, and it is extremely important that this country recognize its ability to handle and manage nuclear materials. I must say that Tom and the Department have demonstrated a willingness to work with those States where these substances are stored, in an effort to create finality to the process and put them in a permanent repository. Idahoans are extremely pleased about that, and I am pleased that this administration is recognizing Tom for his services by this appointment. The CHAIRMAN. Thank you very much, Senator Craig. STATEMENT OF HON. CONRAD BURNS, U.S. SENATOR FROM MONTANA Senator BURNS. Aye. That is my speech. The CHAIRMAN. Senator Grams. Senator BURNS. I have a statement and look forward to working with these folks. The CHAIRMAN. It will be entered into the record as if read. Senator BURNS. Okay, on the privatization of Butte, and we will talk about that later. But I vote aye. The CHAIRMAN. Fair enough. Senator Grams. [The prepared statement of Senator Burns follows:] PREPARED STATEMENT OF HON. CONRAD BURNS, U.S. SENATOR FROM MONTANA Thank you, Mr. Chairman, for calling this hearing today and for the opportunity to learn more of these distinguished nominees for positions within the Department of Energy. I will keep my comments short today so that we can get to the business at hand, and hear from the nominees. This past week I had the pleasure of having Acting Assistant Secretary Grumbly come in and talk to me about the issues of vital importance to our country and to my state of Montana. At that meeting we discussed how he had been involved, re |