[Senate Hearing 115-285]
[From the U.S. Government Publishing Office]
S. Hrg. 115-285
NOMINATIONS OF
BALASH, GLICK, McINTYRE AND NELSON
=======================================================================
HEARING
BEFORE THE
COMMITTEE ON
ENERGY AND NATURAL RESOURCES
UNITED STATES SENATE
ONE HUNDRED FIFTEENTH CONGRESS
FIRST SESSION
To
CONSIDER THE NOMINATIONS OF JOSEPH BALASH TO BE ASSISTANT SECRETARY OF
THE INTERIOR FOR LAND AND MINERALS MANAGEMENT; RICHARD A. GLICK TO BE A
MEMBER OF THE FEDERAL
ENERGY REGULATORY COMMISSION; KEVIN J. McINTYRE TO BE A MEMBER OF THE
FEDERAL ENERGY REGULATORY COMMISSION; AND RYAN NELSON TO BE SOLICITOR
OF THE DEPARTMENT OF THE
INTERIOR
__________
SEPTEMBER 7, 2017
__________
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Printed for the use of the
Committee on Energy and Natural Resources
Available via the World Wide Web: http://www.govinfo.gov
__________
U.S. GOVERNMENT PUBLISHING OFFICE
26-873 WASHINGTON : 2018
----------------------------------------------------------------------------------------
For sale by the Superintendent of Documents, U.S. Government Publishing Office,
http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center,
U.S. Government Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-free).
E-mail, [email protected].
COMMITTEE ON ENERGY AND NATURAL RESOURCES
LISA MURKOWSKI, Alaska, Chairman
JOHN BARRASSO, Wyoming MARIA CANTWELL, Washington
JAMES E. RISCH, Idaho RON WYDEN, Oregon
MIKE LEE, Utah BERNARD SANDERS, Vermont
JEFF FLAKE, Arizona DEBBIE STABENOW, Michigan
STEVE DAINES, Montana AL FRANKEN, Minnesota
CORY GARDNER, Colorado JOE MANCHIN III, West Virginia
LAMAR ALEXANDER, Tennessee MARTIN HEINRICH, New Mexico
JOHN HOEVEN, North Dakota MAZIE K. HIRONO, Hawaii
BILL CASSIDY, Louisiana ANGUS S. KING, JR., Maine
ROB PORTMAN, Ohio TAMMY DUCKWORTH, Illinois
LUTHER STRANGE, Alabama CATHERINE CORTEZ MASTO, Nevada
Colin Hayes, Staff Director
Patrick J. McCormick III, Chief Counsel
Kelie Donnelly, Deputy Chief Counsel
Angela Becker-Dippmann, Democratic Staff Director
Sam E. Fowler, Democratic Chief Counsel
C O N T E N T S
----------
OPENING STATEMENTS
Page
Murkowski, Hon. Lisa, Chairman and a U.S. Senator from Alaska.... 1
Cantwell, Hon. Maria, Ranking Member and a U.S. Senator from
Washington..................................................... 5
Risch, Hon. James E., a U.S. Senator from Idaho.................. 6
Lee, Hon. Mike, a U.S. Senator from Utah......................... 6
WITNESSES
Balash, Joseph, nominated to be Assistant Secretary of the
Interior for Land and Minerals Management...................... 7
Glick, Richard A., nominated to be a Member of the Federal Energy
Regulatory Commission.......................................... 12
McIntyre, Kevin J., nominated to be a Member of the Federal
Energy Regulatory Commission................................... 16
Nelson, Ryan, nominated to be Solicitor of the Department of the
Interior....................................................... 21
ALPHABETICAL LISTING AND APPENDIX MATERIAL SUBMITTED
Alaska Outdoor Council:
Letter for the Record........................................ 140
American Public Gas Association:
Letter for the Record........................................ 141
Athay, William, et al.:
Letter for the Record........................................ 142
Balash, Joseph:
Opening Statement............................................ 7
Written Testimony............................................ 10
Responses to Questions for the Record........................ 55
Cantwell, Hon. Maria:
Opening Statement............................................ 5
Conrad, Gregory:
Letter for the Record........................................ 47
Glick, Richard A.:
Opening Statement............................................ 12
Written Testimony............................................ 14
Responses to Questions for the Record........................ 72
Grasser, Eddie:
Letter for the Record........................................ 48
Kenai River Sportfishing Association:
Letter for the Record........................................ 49
Lee, Hon. Mike:
Opening Statement............................................ 6
McIntyre, Kevin J.:
Opening Statement............................................ 16
Written Testimony............................................ 18
Responses to Questions for the Record........................ 92
Murkowski, Hon. Lisa:
Opening Statement............................................ 1
National Rifle Association of America:
Letter for the Record regarding Joseph Balash................ 50
Letter for the Record regarding Ryan Nelson.................. 146
Nelson, Ryan:
Opening Statement............................................ 21
Written Testimony............................................ 23
Responses to Questions for the Record........................ 130
North Slope Borough (Alaska):
Letter for the Record........................................ 51
Risch, Hon. James E.:
Opening Statement............................................ 6
Sullivan, Hon. Dan:
Statement for the Record..................................... 4
Utilities Technology Council:
Statement for the Record..................................... 147
NOMINATIONS OF
BALASH, GLICK, McINTYRE AND NELSON
----------
THURSDAY, SEPTEMBER 7, 2017
U.S. Senate,
Committee on Energy and Natural Resources,
Washington, DC.
The Committee met, pursuant to notice, at 10:38 a.m. in
Room SD-366, Dirksen Senate Office Building, Hon. Lisa
Murkowski, Chairman of the Committee, presiding.
OPENING STATEMENT OF HON. LISA MURKOWSKI,
U.S. SENATOR FROM ALASKA
The Chairman. Good morning, everyone. The Committee will
come to order.
We are here today to start off the September session by
considering four nominations; two for the Department of the
Interior (DOI) and two for the Federal Energy Regulatory
Commission (FERC). Our Interior nominees are Joe Balash, to be
the Assistant Secretary for Land and Minerals Management, and
Ryan Nelson, to be the Solicitor. Our FERC nominees are Rich
Glick and Kevin McIntyre, who is slated also to be designated
as the Commission's Chairman upon confirmation. I want to thank
all four of our nominees for their willingness to serve or
continue serving our country.
Each of you has been nominated for a critical leadership
position at an agency or department that is very important. You
will certainly have the power to affect millions of American
lives.
As we have noted here many times before, FERC has
significant reach into the national economy. According to the
Congressional Research Service, the value of energy commodities
flowing through FERC-regulated wires and pipes is approximately
three percent of the nation's GDP. Of course, what those
commodities go on to fuel and power make up an even larger
component of our broader economy.
Just before the August state work period we approved two
FERC nominees and restored a working quorum for the Commission.
After six months with just one confirmed commissioner, the
nominees before us today will provide this agency with a full
complement of five members. They have their work cut out for
them as they address----
[Protester interrupting.]
The Chairman. The Committee will come to order.
As I was saying, the FERC will have their work cut out for
them. They have to address a significant backlog of pending
matters, but with these nominees FERC will be back up to speed
with a full roster.
I am confident that Mr. McIntyre will be a capable Chairman
upon his confirmation. He has significant experience and strong
qualifications for the role.
Mr. Glick, who is Senator Cantwell's General Counsel here
on the Committee, is certainly well known to many of us. I will
let Senator Cantwell speak to his background and
qualifications, but I, personally, want to thank him for his
service to this Committee, including his role in shaping our
bipartisan energy bill and many other matters. Mr. Glick, I
truly appreciate the working relationship that we have had and
what you have contributed to the Committee.
Given the extraordinary scope of the Interior Department's
responsibilities, including its administration of more than a
quarter of the land in our nation and about two-thirds of the
land of Alaska, we also recognize that it is well past time
that Secretary Zinke and Deputy Secretary Bernhardt have the
help that they need.
I welcome the nomination of Ryan Nelson of Idaho, a
Westerner and a seasoned General Counsel. Mr. Nelson is
returning to Washington, DC, to resume his already notable
public service, this time as Solicitor. Senator Risch will have
a few words as he will introduce him shortly.
I will focus my own introduction on our fourth nominee, Mr.
Joe Balash of the great State of Alaska. I am delighted to have
Joe before the Committee today. He is a fellow Alaskan which
should be enough to convince everyone to just vote yes on his
nomination.
[Laughter.]
Mr. Balash hails from North Pole, not ``The'' North Pole,
but from North Pole, Alaska. He is currently serving as Senator
Sullivan's Chief of Staff. He previously ran Alaska's
Department of Natural Resources.
I have worked closely with him in both of these roles, and
I truly cannot say enough about his understanding and,
certainly, knowledge of these issues. I think he will be an
excellent Assistant Secretary, overseeing the Bureau of Land
Management (BLM), the Bureau of Ocean Energy Management (BOEM)
and several other key agencies within the Department of the
Interior.
Senator Sullivan did want to be here today to introduce Mr.
Balash but that wasn't possible due to a death in his family,
so I will read a short statement that Senator Sullivan wrote
before submitting his full statement for the record.
Senator Sullivan says, ``Joe Balash currently serves as my
Chief of Staff. While we are sorry to lose him, the job that
Secretary Zinke has tasked him with is one that, I believe, he
is uniquely qualified for. Joe was my Deputy Commissioner of
Alaska's Department of Natural Resources and then he became the
Commissioner of DNR. Alaska's DNR manages one of the largest
portfolios of land, water, oil, gas, renewables, timber and
minerals in the world. Responsible development of Alaska's
resources requires working closely with all groups that have a
stake in Alaska's lands and waters, including
environmentalists, conservationists, hunters, tribes, energy
companies and citizens. Joe understands how to work to develop
our resources while always understanding that our lands sustain
us and stringent environmental safeguards are absolutely
necessary for all Americans. Joe Balash is a hard worker, a
great father and husband and a good friend. I hope this
Committee can vote him out favorably to be considered by the
full Senate.''
[The information referred to follows:]
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
The Chairman. Well, Joe, like Senator Sullivan, I certainly
look forward to having you at the Department of the Interior. I
know a lot of Alaskans, a lot of Westerners, feel the same way.
Again, thank you for your willingness to step up in this
capacity.
Now, to a little bit of the business. For members who will
have questions for our nominees, I will be here for as long as
possible today. I am bouncing in and out of committees, as I
know other members are, but if any members have additional
questions after the hearing, questions for the record will be
due at the close of business today. Finally, I would advise
members to be prepared to report these nominees as soon as
possible.
With that, I turn to Senator Cantwell for her opening
remarks. After that we will have brief remarks from Senator
Risch to introduce Ryan Nelson, and then we will swear in all
the witnesses.
STATEMENT OF HON. MARIA CANTWELL,
U.S. SENATOR FROM WASHINGTON
Senator Cantwell. Thank you, Madam Chair, and thanks for
scheduling this hearing and congratulations to all the nominees
on being nominated for your posts.
Because of the recess, I have not had a chance to meet with
three of the nominees, Mr. McIntyre, Mr. Nelson and Mr. Balash,
but I look forward to doing that now that we are back. So I
look forward to your comments this morning as well.
I did want to say something, though, this morning about our
FERC nominee to the Commission. I am particularly pleased by
the President's nomination of Rich Glick to the Federal Energy
Regulatory Commission. Rich has worked, as the Chairwoman just
said, most recently for us on the Committee for the past 18
months, but he brings a rich wealth of knowledge about electric
utility, natural gas and a myriad of other energy issues
working in both the public and private sectors. He gained that
knowledge working for Senator Dale Bumpers, one of our former
colleagues, as Legislative Director and Chief Counsel, and as
Policy Advisor to Energy Secretary Bill Richardson during the
Western energy crisis. He has also worked for two major
electric utility companies, PacifiCorp and Iberdrola, which is
now Avangrid.
He understands the complex issues that come before the
Commission because he has spent 25 years working on them. He
also understands the importance of FERC and its role in
protecting the public interest and ensuring that just and
reasonable rates for natural gas and electricity help keep the
markets fair and free of market manipulation.
[Protestor interrupting.]
Senator Cantwell. Rich's appointment to the Commission
certainly will be a loss for us here but it will be a gain for
FERC. I look forward to an opportunity for him to elaborate
more on that experience during today's hearing.
So, thank you, Madam Chair, for scheduling this hearing so
promptly as we have returned and, obviously, we have a lot of
work to do.
The Chairman. Thank you, Senator Cantwell.
Senator Risch.
STATEMENT OF HON. JAMES E. RISCH,
U.S. SENATOR FROM IDAHO
Senator Risch. Thank you very much, Madam Chairman.
It is my honor and privilege today to introduce Ryan Nelson
who is here with us today, and he has been nominated by the
President to serve as Solicitor of the Department of the
Interior.
Ryan, we are glad you have agreed to do this, and we are
appreciative of that.
Mr. Nelson lives in Idaho Falls, Idaho, and is General
Counsel for an Idaho-based company. All of you are familiar
with Idaho Falls, Idaho, because you have listened to me wax on
and on about the merits of the Idaho National Laboratory (INL)
and INL is located in Idaho Falls.
Most importantly to me today, Mr. Nelson's family is here.
His wife and his seven children, all seven children, are here
today for this hearing. So we are so honored that you would
bring your family along.
Mr. Nelson graduated from the Brigham Young University
(BYU) Law School with honors and clerked immediately thereafter
for Judge Henderson in the DC Circuit. He has had other
clerkships, but most notably he was a clerk on the Iran/U.S.
Claims Tribunal in The Hague in the Netherlands.
He has served as Deputy Assistant Attorney General in the
Environment and Natural Resources Division of the Department of
Justice, and he has served as Special Counsel here in the
United States Senate for the U.S. Senate Judiciary Committee.
I think the President has made an excellent choice for the
Solicitor's job, so I commend him to the Committee and I have
confidence that after we hear from him the Committee will be
well disposed to send his nomination to the Floor.
I want to yield some time to my seatmate here, Senator Lee,
who is modestly acquainted with the nominee.
STATEMENT OF HON. MIKE LEE, U.S. SENATOR FROM UTAH
Senator Lee. Thank you, Senator Risch, and thank you Madam
Chair for letting me break in for a brief moment of personal
privilege.
Ryan Nelson and I have been friends for over 20 years. I
got to know him in law school. He was known as a brilliant law
student and he absolutely was.
I helped recruit him to the law firm of Sidley Austin where
I was working as Ryan completed his clerkships, and it was a
real pleasure to work with him. We have remained friends ever
since then. Ryan is known throughout the country as a lawyer
who is dedicated to the rule of law and he was willing to do
the hard work to figure out what the law requires and to advise
his clients accordingly, to seek justice at every turn.
In addition to his many other accolades and the fact that
he is a father of seven, which Senator Flake will tell you, is
actually a fairly small family, but----
[Laughter.]
He also is fluent in Dutch and Flemish. I am sure both of
those talents will come in handy in his new position, should he
be confirmed.
Thank you very much. We look forward to hearing from you,
Ryan.
Senator Risch. Thank you, Madam Chairman, we yield back.
The Chairman. Thank you, we appreciate that introduction
and appreciate, again, the willingness of all of you to be with
us today.
The rules of the Committee which apply to all nominees
require that they be sworn in connection with their testimony.
So, I would ask that you all please rise and raise your right
hand.
Do you solemnly swear----
[Protester interrupting.]
The Chairman. Gentlemen, do you solemnly swear that the
testimony you are about to give to the Senate Committee on
Energy and Natural Resources shall be the truth, the whole
truth and nothing but the truth?
[Nominees answer, yes.]
The Chairman. Before you begin your statement I will ask--
you can go ahead and be seated. I will ask three questions
addressed to each of you before this Committee.
Will you be available to appear before this Committee and
other Congressional Committees to represent departmental
positions and respond to issues of concern to the Congress?
[Nominees answer, yes, we will.]
The Chairman. Are you aware of any personal holdings,
investments or interests that could constitute a conflict or
create an appearance of such a conflict should you be confirmed
and assume the office to which you have been nominated by the
President?
[Nominees answer, no.]
The Chairman. Are you involved or do you have any assets
held in blind trusts?
[Nominees answer, no.]
The Chairman. At this point in time we will lead off with
Mr. Balash, again, who has been nominated to be the Assistant
Secretary of the Interior for Land and Minerals Management.
Mr. Balash, welcome to the Committee. To each of you as you
begin your statements, if you would care to introduce any
family members that you might have here with you today, we
would certainly welcome that opportunity as well.
STATEMENT OF JOSEPH BALASH, NOMINATED TO BE ASSISTANT SECRETARY
OF THE INTERIOR FOR LAND AND MINERALS MANAGEMENT
Mr. Balash. Chairman Murkowski, Ranking Member Cantwell,
members of the Committee, I'm humbled to appear here today as
President Trump's nominee for the position of Assistant
Secretary for Land and Minerals Management of the Department of
the Interior. It is an honor to be asked to serve in this role,
and I thank Secretary Zinke for the opportunity to work for the
people of the United States. Thank you as well for your
remarks, Madam Chair, as well as those on behalf of Senator
Sullivan.
I could not be here today without the support of my wife of
21 years, Brenda, who's here with me, seated behind me along
with our youngest child. Our oldest child, our teenager, has
elected to stay in school today since classes just began on
Tuesday. My parents are also in the hearing room, Larry and
Janie Balash, as well as a couple of my sisters.
The Chairman. We welcome them.
Mr. Balash. I grew up in a large Air Force family moving
all around the United States. One of the rules my dad instilled
in us was to leave a place better than we found it, whether
it's a picnic area at a park or the family visiting center for
those times he was called to alert duty.
In the early 1980s, we were able to visit my grandparents'
homes in the Pittsburgh area twice a year, and on those trips I
observed the deterioration of the mighty steel industry that my
grandpap, Dick Sharkins, cherished. At the time, he used to
curse the EPA for shutting down the mills that employed him and
his brother teamsters. At the time, I concluded the only choice
we had was either good jobs or a clean environment.
My dad's next duty station, however, was at Eielson Air
Force Base in the interior of Alaska. This was truly a life-
changing event for me. We spent my early teenage years chasing
salmon wherever his Subaru could take us. As I learned about
the spawning cycle of salmon and their dependence on an entire
system of water bodies, my appreciation for the value of clean
water grew, and at the same time I began to learn about the
permanent fund dividend program and where our state's wealth
came from.
The reality of how Alaska managed to produce so much oil
while sustaining healthy salmon populations caused me to
revisit those earlier conclusions. I realized that with the
right approach, you can have responsible development without
sacrificing clean air and water.
As I wrapped up my collegiate education, I had an
opportunity to work for my hometown legislator in Alaska's
capital. I spent the next eight years working as a Legislative
Aide and learned that our ability to get things done in public
service depends on relationships across regions, across party
lines and despite differences on separate issues.
In 2006, I made my way from the Legislative Branch to the
Executive Branch of state government, and at the Department of
Natural Resources (DNR) I was charged with managing and leading
an organization that manages one of the largest portfolios of
land and water in the world. While I was there we resolved
disputes that bedeviled the state for decades, established new
standards for the transfer of ownership in oil and gas
properties. We oversaw the placement of the first offshore
platform in state waters in nearly 20 years, we opened the
first state park in decades with a view of Denali that rivals
any other I've seen and we published maps with clear
delineations of trails to enable hunters and anglers to access
public lands while respecting private property.
I'm proud of what we accomplished at DNR while I was there,
but all of this was really done by the people who carry out the
day-to-day functions of the Department.
During my time, I learned that managing people who are
smarter than you and know more about the details, requires an
open management approach in order to drive the organization
toward complex decision-making. You have to provide a
transparent view into what you're trying to do and why you want
to do it. I believe that an approach like this helps ensure the
organization, as a whole, focuses on the bigger picture. If
confirmed, I would take such an approach at the Department of
the Interior.
The public lands of the United States contain a tremendous
bounty of natural resources, resources that represent the
assets of the American people. When managed effectively, these
assets can deliver opportunities to recreate, appreciate and
generate wealth. Under Secretary Zinke's leadership and the
goals established by President Trump, I believe the Department
of the Interior can deliver on this promise.
My background and the experiences I've gained managing the
assets of my home state have prepared me well to serve as the
Assistant Secretary for Land and Minerals Management and it
would be my honor to do so.
If confirmed, I will work relentlessly to produce the value
the American people deserve from their public lands and this
includes recreational access, responsible energy development
and active management of the Department's assets. I'll do so
within the confines of the laws established by the Congress and
with the dedication to transparent leadership and
accountability.
Chairman Murkowski, thank you for the opportunity to appear
before the Committee today.
I look forward to your questions.
[The prepared statement of Mr. Balash follows:]
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
The Chairman. Thank you, thank you very much.
Mr. Glick, welcome.
STATEMENT OF RICHARD A. GLICK, NOMINATED TO BE A MEMBER OF THE
FEDERAL ENERGY REGULATORY COMMISSION
Mr. Glick. Thank you.
Chairman Murkowski, Ranking Member Cantwell and members of
this Committee, thank you for the opportunity to appear this
morning as a nominee to serve on the Federal Energy Regulatory
Commission.
Senator Cantwell, I want to begin by thanking you so much
for the very generous statement that you made. I really
appreciate everything you've done for me. I want to thank you
and Senator Schumer for the confidence you all have shown in me
by putting my name forward for this position.
I'm especially grateful to Senator Cantwell for bringing me
back to work in the United States Senate, where I spent six-
and-a-half years in the 1990s. Although the faces have changed
and some of the issues have changed, the Senate, particularly
the Senate Energy and Natural Resources Committee, remains a
special place. It has been a privilege to work for this
Committee and Senator Cantwell over the last 18 months and with
this Committee's extremely professional staff on both sides of
the aisle.
I also want to thank Chairman Murkowski for working
tirelessly to expedite this nomination process.
And I would be remiss if I failed to mention Senator Dale
Bumpers, who served as a senior member of this Committee and
the Ranking Democrat when I worked for him in the 1990s. I owe
so much to Senator Bumpers for taking a chance on me and for
serving as a mentor on politics and life, but especially for
instilling in his staff the notion that public service is a
noble calling.
I also want to recognize my wife, Erin, and our son
Alexander, who have joined me here today. Alexander just
started third grade a couple days ago, and he's already
enjoying his first day off for the year.
[Laughter.]
They are both a constant reminder of what is really
important in life.
I have had the opportunity to work on a number of major
energy issues over my career. As a young lawyer at a
Washington, DC, law firm I helped to represent public power
utilities and utility regulators. As a Legislative Director and
Chief Counsel to Senator Bumpers, I worked on several
provisions that were included in the Energy Policy Act of 1992
and helped to draft bipartisan legislation addressing electric
industry restructuring. As a Senior Policy Advisor to Energy
Secretary, Bill Richardson, I worked on the Clinton
Administration's response to what at the time was known as the
``western energy crisis''. Thereafter I worked for a multistate
electric utility in the West with a significant amount of
baseload electric generation, PacifiCorp. I then went to work
for what is now known as Avangrid, an energy holding company
that is one of the biggest renewable electricity generators in
the U.S. and operates several gas and electric distribution
utilities in the Northeast. And most recently, I have had the
honor of serving as a General Counsel for the Minority on this
Committee where I have worked on several energy policy issues,
including the bipartisan energy bill that's currently pending
on the Senate calendar.
On each occasion, I have witnessed the important roles that
FERC plays. FERC's decisions can have a significant impact on
the lives of everyday Americans.
For instance, the Commission's inability to come together
on a unified response during the height of the western energy
crisis in 2000 caused consumers to pay more for electricity and
natural gas than they should have. If I am so fortunate to be
confirmed by the Senate to serve as a FERC Commissioner, I
intend to work with my colleagues to safeguard the public's
interests.
I also look forward, if confirmed, to working with my
fellow commissioners to help facilitate the ongoing dramatic
transformation to the ways Americans produce and consume
energy. This revolution has the potential to substantially
improve our energy efficiency, reduce emissions, grow the
economy and create millions of new jobs. FERC, working with
state regulators, can help eliminate barriers to the adoption
of these new technologies and processes.
Senator Cantwell and Chairman Murkowski, thank you again
for the opportunity to appear before this Committee today. I
also look forward to answering your questions and the questions
of your colleagues.
[The prepared statement of Mr. Glick follows:]
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Senator Barrasso [presiding]. Thank you and
congratulations, Mr. Glick.
Mr. McIntyre, please proceed.
STATEMENT OF KEVIN J. McINTYRE, NOMINATED TO BE A MEMBER OF THE
FEDERAL ENERGY REGULATORY COMMISSION
Mr. McIntyre. Thank you, Senator.
Good morning. Good morning, Ranking Member Cantwell and
members of the Committee on Energy and Natural Resources.
I am honored to address you today as a nominee to a vital
independent agency that has been the principal focus of my
career, the Federal Energy Regulatory Commission.
I begin by thanking the President of the United States for
this nomination. I am humbled by the confidence that he has
placed in me, and if confirmed by the Senate, I will do my
utmost to exceed the high standards that the American people
expect of their public servants.
Thirty years ago this summer, I first discovered FERC when,
as a law clerk at an energy law firm here in Washington, I was
assigned to a natural gas rate matter. What I encountered in
that first brush with FERC was a bustling, multifaceted agency
with a language all its own and a mission whose importance was
obvious to me even then as a young novice. That first
experience triggered a lifelong passion for the field of energy
law and policy, and it set me on course for a career in the
field of energy regulatory law.
Over the past three decades, I have counseled and
represented clients in nearly all industry sectors, with many
different market roles, including transmission and
transportation providers, customers of such entities,
generators of renewable, nuclear- and fossil-fueled
electricity, integrated utility companies, energy producers,
marketers and traders, a Native American tribe, and many
others. This diverse experience has prepared me for the scope
and variety of matters within FERC's jurisdiction and has
helped me to appreciate the broad range of perspectives on the
complex economic, environmental, community and national
security issues that come before FERC.
It is impossible for me to separate my enthusiasm for
energy law and policy from my equally fervent passion for the
practice of law, a profession that is honorable and essential
for its role in giving voice to the rights and interests of
all, and ultimately for advancing the cause of justice in cases
large and small.
I have the privilege of serving as co-head of the global
energy practice of Jones Day, and in that capacity working with
and learning from colleagues whom I regard as among the finest
lawyers in the world. I have observed first-hand how excellence
in legal advocacy has led to significant improvements in law
and policy.
My belief in the importance of excellence in legal practice
and processes and their role in bringing about a more just
society goes hand-in-hand with my belief in the importance of
the rule of law, which my firm has worked to strengthen through
pro bono and charitable efforts around the world.
I raise this background and these beliefs because they have
engendered in me a philosophy of governance that I would bring
to FERC, if confirmed. Specifically, I believe that any
consideration of potential action by FERC, or by any
governmental body, must begin with a firm understanding of the
applicable legal requirements and that any action taken must
satisfy those requirements in full. Because many situations
permit a range of equally lawful decisions, including some with
profound policy implications, it is also critical to ensure a
full airing of all views on the matter, with input by
stakeholders, including the public.
If confirmed, I would be guided by these principles, rooted
in the rule of law and in a commitment to processes that are
open, transparent and fair, with an insistence on excellence in
the workings of government. I would strive to bring an even-
handed and judicious approach to each matter, with a focus on
listening, which is indispensable to fairness and sound
decision-making.
I would like to thank my family and others who are here
with me today. I begin with my dear wife Jenny, who, besides
being a heroically supportive spouse and mother to our
children, is also a terrific lawyer, on whose counsel I rely
daily. I am delighted that our children are here. Lizzie, a
second-grader at St. Thomas More Cathedral School in Arlington;
Tommy, a new kindergartener, also at St. Thomas More; and wee
Annie, in pre-K at the Reed School in Arlington. I also thank
my parents, Jack and Alice McIntyre, for being here, and, yes,
for enduring my early years with love and patience. My views on
the importance of public service were formed in observing my
dad's long career in the U.S. Air Force and my mom's own
sacrifices as a military spouse in service of our country.
Finally, allow me to acknowledge my parents-in-law, Irene and
Leger Brosnahan, and the other family members, dear friends and
colleagues who are here today. I thank them all for their
enduring support.
With that, I thank you for this opportunity to appear
before the Committee, and I look forward to answering your
questions.
[The prepared statement of Mr. McIntyre follows:]
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Senator Barrasso. Thank you very much, Mr. McIntyre.
Congratulations, again, on your nomination.
Mr. McIntyre. Thank you, Senator.
Senator Barrasso. Mr. Nelson, we welcome your comments.
STATEMENT OF RYAN NELSON, NOMINATED TO BE SOLICITOR OF THE
DEPARTMENT OF THE INTERIOR
Mr. Nelson. Senator Barrasso, Ranking Member Cantwell and
members of the Committee, I am honored to appear before you as
the President's nominee to be Solicitor at the Department of
the Interior. I ask for your consent to the President's
nomination.
I am joined today by my lovely, ever supportive and
eternally patient wife, Barbara, and our seven kids--my son,
Baerett, who is interning here at the Senate; and then Ashley,
Sophie, Savannah, Olivia, Russell and Lucy. Also with me are my
parents, Doug and Billie Nelson. My father is currently
fighting and winning his battle with cancer, and I am very
grateful that he can be here today. My father-in-law, Mark
Baer, and his wife, Shirl, are also here. They are serving
collectively their seventh mission for the church at Fort Lee
Army Base in Prince George, Virginia. My sisters, Angela
Groberg and Hayley Potter, are also here with their sons, Jack
and Isaac. And other family friends are present and watching
this hearing online.
I'm grateful to Senator Risch for his kind words of
introduction. I have long admired Senator Risch as a great
Idaho leader, and he has brought his tenacity to the Senate
where he gets great work done for the American people.
I'm grateful for the public support of Senator Crapo. He is
from my hometown, and I was at his home or he was at our home
when I was just 16 and gave me a great early interest in legal
and political issues.
And I do want to thank Senator Lee for his kind
introduction. He's been a great friend and colleague over the
years as well.
I've been nominated to serve as Secretary Zinke's Chief
Counsel and lead the legal team at the Department of the
Interior, a team of 300 lawyers, who serve 67,000 employees and
manage 20 percent of the land of the United States. I welcome
the opportunity, if confirmed, to further the mission of the
Department, to protect and manage the nation's lands, natural
resources and cultural heritage.
I was born and raised in Idaho, a sixth-generation Idahoan.
My playground growing up was Yellowstone and Grand Teton
National Parks, Island Park, where our family cabin was on
leased federal land, and Craters of the Moon National Monument
and Preserve. I have used federal lands in Idaho and most of
the states for a wide variety of outdoor activities including
boating, skiing, hiking, camping, hunting and fishing.
Growing up in Idaho, I, in Shakespeare's words, found
``tongues in trees, books in running brooks, sermons in stones
and good in everything.''
Although I grew up and was educated in the West, I spent my
early legal career here in Washington. I first came to DC to
work for the Senate Legal Counsel right after President Clinton
had been impeached by the House of Representatives. I recall
walking up to Capitol Hill for my first time to start work on
December 28th, with the city cold, dark and empty and a deep
sense of awe for this Senate body, which I hold today. I was
grateful to assist the Senate Legal Counsel team that was calm
and even-handed in a hot, political environment as we provided
quick, unbiased and accurate legal advice to enhance the
political process.
After an appellate clerkship and several years practicing
as an appellate lawyer, I was appointed Deputy Assistant
Attorney General for the Environment and Natural Resources
Division (ENRD) at the Department of Justice. There, I gained a
deep understanding and respect for natural resource and
environmental law as well as the important mission of the
Department of the Interior, which is, by far, the Division's
largest client.
I managed some of the most complex and natural resource
legal questions and argued several cases and appeals. The ENRD
political team developed productive working relationships with
the exceptional career attorneys, relationships which, if
confirmed, I hope to call on as a colleague, client and friend.
In 2009 I returned home and have since served as General
Counsel for one of Idaho's largest corporations, Melaleuca, a
$1.75-billion worldwide company.
I have seen first-hand the impact government policies have
on working citizens and families. I am proud that much of my
efforts have been spent protecting the ``little guy,'' the
average American who is working hard and trying to get ahead.
If confirmed, I am committed to use my extensive legal
background to accurately interpret the law, follow it and
fulfill the Department of the Interior's vital mission, to
protect our country's resources and heritage for the next
generation.
I am convinced that President Trump's and Secretary Zinke's
goals for the Department will not only preserve, but will
increase our value of our natural resources for future
generations.
Thank you.
I look forward to your questions.
[The prepared statement of Mr. Nelson follows:]
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
The Chairman [presiding]. Thank you.
Again, gentlemen, I apologize that I had to step out.
I am going to defer to Senator Cantwell.
Senator Cantwell. Thank you, Madam Chair.
I want to say, again, congratulations to all of you on your
nominations. Each of you come with a deep resume of experience.
I think it is important. So thank you for that.
I wanted to ask you, Mr. McIntyre, obviously, FERC is an
agency that can play such an important role in prohibiting
manipulation. We saw in the Western energy crisis, the
manipulation to a great degree of electricity with various
schemes that I can still recall. Fat Boy, Get Shorty, a whole
variety of things that were just about moving power in and out
of markets as a way to spike rates.
Since we have given the Commission authority, they have
investigated over 100 cases of alleged manipulation and
collected a half a billion dollars in civil penalties for
market manipulation. Are you committed to policing the energy
markets and keeping them free from this kind of manipulation?
Mr. McIntyre. Thank you for the question, Senator.
Yes, I absolutely am. FERC's role in enforcement is a very
important one, and I believe in a robust program of
enforcement. If confirmed, I would bring that view to my work
at the FERC.
Senator Cantwell. So you do not believe that it is just
calling balls and strikes but protecting the public interest
standard as it relates to just and reasonable rates for
electricity and natural gas?
Mr. McIntyre. I think it goes beyond just just and
reasonable rates. As you suggested in your question, the
Congress did, in the Energy Policy Act of 2005, give express
authority to the FERC to police market manipulation in energy
markets regulated by the FERC. That's something that comes up
in a number of different contexts, and I think it's essential
that the FERC get that right. This goes back to my assistance
on the rule of law.
Senator Cantwell. Thank you.
Mr. Balash, can you talk to me about royalty rates? Where
do you think we are on royalty rates and whether you think that
they are, on coal and oil and gas leases, too high, too low?
Will you seek to lower them? What is your philosophy on that?
You and I have not had a chance to meet yet, so----
Mr. Balash. Thank you, Senator.
When it comes to the collection of royalties and rents, you
know, that is the public's ownership interest in the
subsurface, the mineral estate that belongs to all of us. And
when it comes to establishing those rates it needs to be done
with an eye toward not only earning a return for the American
people but also with an eye toward the circumstances and
economic conditions under which that particular resource can be
extracted.
In some cases, depending upon the price environment, the
specific geological challenges and also the access to
infrastructure, sometimes those rates need to be higher
relative to other places and sometimes lower.
In my experience at DNR, we increased the minimum bid due
on bonuses paid at the time of an auction. We also increased
annual rental rates and, in some circumstances, very tightly
controlled and defined, according to statutes, reduced
royalties. So, it really does depend on the circumstance at the
time.
Senator Cantwell. Well, I will follow up on that. In what
areas were they reduced and why? Maybe that is something you
and I can either talk about or follow up on.
Mr. Nelson, how do you look at this as Solicitor? The Obama
Administration had said that we had outdated rules on royalties
because they had not been updated in 34 years. How do you look
at this issue in the agency's responsibility on royalties?
Mr. Nelson. Senator, I think the agency needs to look at
the rules and review them and make sure that they are
adequately providing value for the American people. Obviously,
any new rules would have to be adopted consistent with the APA,
and I would take a hard look at that once I get in.
Senator Cantwell. Do you think after 34 years--is it time
to update, to look at the environment?
Mr. Nelson. I really don't have an opinion on that,
Senator. I think it depends on the circumstances. It could be
okay, but maybe there is a need to update.
Senator Cantwell. Okay.
I think I will follow up with you on that.
Mr. Glick, cyberattacks on our electric utilities and grid
are a constant and growing threat. Are you satisfied that we
are doing enough here? Do you think that there is more that
needs to be done to protect the grid?
Mr. Glick. Well, thank you, Senator.
Clearly, there's more that does need to be done. Utilities
are under, the grid is under constant attack from both nation
states but other bad actors as well. And we saw a report that
just came out yesterday that indicated that more utilities
were--systems were penetrated. That is something we need to
take a look at.
I think that the FERC has, along with NERC, pursuant to its
reliability authority, subjected utilities to various
standards, cybersecurity standards, physical security standards
as well, to hopefully prevent and limit the ability of others
to attack.
But also, we need to take a look at our supply chain. FERC
asked NERC, I think it was last year, to come up with a
rulemaking to address the supply chain of utilities, especially
as it relates to their industrial control systems. And it's
something, I think, we need to follow through on. So if I am
confirmed, I certainly will want to work on that.
Senator Cantwell. Thank you.
Thank you, Madam Chair.
The Chairman. Senator Barrasso.
Senator Barrasso. Thank you very much, Madam Chair.
Mr. Glick, I sure appreciated your comments there about the
threats, the attacks on the grid and supply chain and
reliability.
I am going to ask you a question first, Mr. McIntyre, and
then you, Mr. Glick.
Wyoming is the nation's leading coal-producing state. The
coal industry is responsible for thousands of certainly,
Wyoming jobs, and billions in state and local government
revenues. But coal also plays a critical role in electric grid
reliability and resilience.
Unlike other generation sources, coal-fired power plants
have fuel storage on site and the ability to generate power 24
hours a day, 7 days a week.
In a recent FERC podcast, Acting Chairman Neil Chatterjee
recognized the importance of maintaining the nation's coal
fleet. Specifically, he said that the baseload generation
resources, such as coal power plants, should be recognized as
an essential part of the fuel mix for power generation.
So Mr. McIntyre, first to you. Do you share the Acting
Chairman's views and do you have any comments you would like to
make about that?
Mr. McIntyre. Thank you for the question, Senator.
I confess, I did not see the podcast or hear the podcast.
However, as you suggest, coal, historically, has played an
enormously important role in our nation's generation of
electricity. And you use the term baseload, the concept being
the electric generating plants that can essentially run full
tilt, around the clock, often nuclear-fueled power plants are
mentioned in this context as well. The importance of such
resources cannot be denied; however, FERC is not an entity
whose role includes choosing fuels for the generation of
electricity. FERC's role, rather, is to ensure that the markets
for the electricity generated by those facilities proceed in
accordance with law.
I think, overall, the FERC's role should be to take a hard
look at these very important questions and determine where
FERC's jurisdiction actually gives it a role in making
decisions that could ensure that there is proper attention to
the reliability and resilience impacts of what have
traditionally been thought of as baseload generation.
Senator Barrasso. Alright, thank you.
Mr. Glick?
Mr. Glick. Well, Senator, as Mr. McIntyre suggested, coal
certainly makes up a significant portion of the grid. And, as I
understand it, coal and natural gas combined make up about 64
percent of all electric generation. So, for me, it's a question
of reliability.
The Department of Energy Grid Study that was released
recently, I had a chance to review it, essentially suggested
that the significant loss of baseload generation of both coal
and nuclear has not impaired reliability to date, but they also
suggested it's something we need to keep an eye on and look for
in the future. And so, I think it's both, both FERC and the
Department of Energy need to keep an eye on that and continue
to study the matter.
Senator Barrasso. Great. Thank you.
Mr. McIntyre, the Department of Energy recently released
the staff report to the Secretary on electricity markets and
reliability, known as the Grid Study. The study expresses
concerns that wholesale electricity markets do not adequately
compensate coal and nuclear baseload power generation
resources. If this problem continues, baseload plants continue
to be taken offline. This study concludes that the reliability
and resilience of the nation's power grid may be at risk. To
fix the problem the study recommends that the FERC take steps
to improve how electricity markets compensate baseload power.
As incoming FERC Chairman, what action would you take to
improve how electricity markets compensate this baseload power
generation?
Mr. McIntyre. Thank you for the question, Senator.
I should note that the FERC already has a good bit of work
underway in this area. They convened a series of conferences
earlier this year on price formation in energy markets with a
particular eye toward issues along those lines. And if
confirmed to the FERC, I would commit to looking very carefully
at these issues and giving them the attention they deserve.
Thank you.
Senator Barrasso. Mr. Balash, on July 6th Secretary Zinke
issued an order to streamline the Bureau of Land Management's
review process for applications to drill oil and gas on federal
land. I am encouraged by his order.
As Secretary Zinke explained, BLM has nearly 3,000 pending
applications and takes an average of 250 days to process an
application. Oil and gas permitting delays directly threaten
our energy security. It threatens American jobs. It threatens
economic stability in many small communities.
As Assistant Secretary for Land and Minerals Management, it
will be your responsibility to implement Secretary Zinke's
orders. What steps will you take to ensure that the BLM field
offices have the resources that they need to relieve this
incredible backlog of oil and gas permit applications?
Mr. Balash. Thank you, Senator Barrasso.
When I assumed the position at the Alaska Department of
Natural Resources in 2010, along with Senator Sullivan, we
found ourselves in a circumstance not unlike this, with a
tremendous backload of applications for permits, rights-of-way
authorizations. We immediately undertook a review, along with
the leadership of the Department, the career professionals, to
understand what the cause of that backlog was, why they weren't
able to process them in a timely manner, what some of the
administrative cycles and appeals might be and also what
resources they needed additionally. We came up with a specific,
robust plan to address all of those questions, including
funding positions, accounts and even worked with our
legislature to identify opportunities to, maybe, streamline
statutory procedures in a more modern way.
The advent of information technology really enables us to
speed up some of those processes that used to require on a more
mundane, sort of, paper format. So I'm pleased to say that we
were able to eliminate more than 50 percent of that backlog and
ultimately, I would seek to perform a similar review and result
here at the Department of the Interior.
Senator Barrasso. That is very encouraging.
Thank you, Madam Chairman.
The Chairman. Thank you, Senator Barrasso.
Senator Heinrich.
Senator Heinrich. Thank you, Madam Chair.
Mr. Balash, I want to bring your attention to the area
around Chaco Culture National Historic Park as we spoke a
little bit in my office yesterday and the role, in particular,
that BLM plays in managing that surrounding area.
As I mentioned to you, it is a very complicated location.
There are BLM lands and minerals, Navajo tribal lands and
minerals, as well as individual Indian allotments, all mixed
together in a very complex, sort of, checkerboard pattern. And
that is not to mention the state lands and state sections, the
private lands that are also mixed into this area.
Chaco is a truly unique site. It is recognized
internationally for its cultural resources, and it has been a
sacred site for both the Pueblo tribes as well as the Navajo
nation for as long as anyone can remember.
Last year the BLM and the BIA signed an agreement to be co-
lead agencies on the Resource Management Plan (RMP) Amendment
that is currently underway for this area. Having both of these
agencies at the head of the table, working together, I believe,
is critical to protecting the important cultural resources and
religious sites while also planning for future energy
development in this basin.
Will you commit to working with the New Mexico delegation
to keep that agreement and working relationship intact and to
ensure that the tribal interests are given full consideration
in this RMP process?
Mr. Balash. Thank you, Senator Heinrich.
Having worked on a smaller level, but equally complex basis
in multiple locations around my home state I understand the
value of bringing everybody to the table and working in a very
collaborative manner. You do have my commitment to reach out
and work with the leadership at BIA to continue the agreement,
assuming it works for both parties.
There's a lot, I'm sure, to review upon confirmation, and I
look forward to working with your office on that.
Senator Heinrich. Thank you, and I as well.
I want to switch over real quick to our two FERC nominees,
and I want to follow up on some questions from Senator
Barrasso.
I, too, have been following very closely DOE's recent staff
report on power markets. I was pleased that they concluded that
the grid is operating reliably. I am concerned that the term
baseload power has potentially become a bit of, less of an
engineering term and more of a political term in recent years.
In particular, the indication within that report that
potentially FERC should modify existing competitive markets for
bulk power as an attempt to either prop up or even subsidize
central generation technologies that are no longer cost
competitive in current market conditions.
Would each of you care to share your thoughts, in
particular, on this DOE report and, in particular, suggestions
to FERC?
You can flip a coin for who goes first. Mr. McIntyre, it
looks like you are ready.
Mr. McIntyre. Thank you, Senator.
It's a complex area and it touches upon a couple of
different aspects of the FERC's jurisdiction, not just the
oversight of energy markets and the assurance of just and
reasonable rates in those markets, but also the reliability
component of protection of the grid and the issues go to both
of those areas of FERC's jurisdiction.
What I would assure you, if confirmed by the Senate, is
that I would give the matter very careful consideration. It
does also overlap with work that's currently underway at the
FERC. In light of that it wouldn't be appropriate for me to
suggest a specific policy position on it here.
Senator Heinrich. Mr. Glick?
Mr. Glick. Senator, like Mr. McIntyre, I'm reluctant to
comment too specifically because it's a pending matter. I will
note that the Commission had a 2-day technical conference on
this matter both, I think, on May 1st and 2nd of this year and
there's been a number of comments filed since. So it's worth
looking at the record.
I will say your comment about prop up, I think, is very
important. The Commission doesn't have the authority nor should
it prop up failing technologies or technologies that are
uneconomically competitive. I think the DOE Grid Study suggests
that there are some reliability attributes that those
technologies provide.
I think so far, as I mentioned earlier, the Grid Study
found that the loss of those technologies, the loss of some
baseload generation hasn't had an impact on reliability. But as
I said before, it's worth looking at. I think it's certainly
worth studying, continuously studying, but certainly the
Commission shouldn't be in the business of propping up
technologies.
Senator Heinrich. Thank you both.
The Chairman. Thank you.
Senator Flake.
Senator Flake. Yes, Mr. Balash, Secretary Zinke has
frequently spoken of restoring trust between the BLM, those who
use federal lands and those who live near those lands. Coming
from a state that is roughly 42 percent federally owned, only
about 18 percent of Arizona is privately owned, I understand
the actions of BLM have significant impacts on the economies in
rural Arizona. I often hear from constituents about issues such
as BLM mismanagement of wild burrows, problems with access to
federal lands and slow permit processing times.
What opportunities do you see for the Bureau to improve
engagement with local stakeholders in actions such as
developing land management plans and cooperatively managing
these critical resources in Arizona?
Mr. Balash. Thank you, Senator Flake.
As a former adjacent landowner and manager in my home
state, I got to experience first-hand various planning
processes and NEPA reviews with BLM and other federal agencies.
And I would say that more than anything I hope to instill, as a
Westerner, the perspective of being, not just a good neighbor,
but a quality neighbor in the Western part of our nation.
These reviews and processes conducted with cooperating
agency recognition of these other governments needs to be more
than just a paper exercise. There needs to be real
consideration given to the comments that come in from those
state, local and tribal governments that we will work with in
these processes.
Senator Flake. Thank you.
Regarding BLM permit processing, Arizona has a long
history, as you know, of responsible mining that has taken
place on BLM, Forest Service and private lands. Because of the
prevalence of BLM lands throughout the state, many mines on
private lands need BLM permits for access or relating land
disturbance activities.
It is shocking to hear stories about the length of time it
takes to get the most straightforward mining permit in Arizona.
For example, there is a proposed gold mine near Quartzsite that
they have been trying to get up and going for years. That is a
very small, simple mine using no toxic chemicals on a few acres
far away from the nearest settlement. It took them several
years just to get their BLM permits in what can only be
described as a very haphazard process.
We cannot afford to have land management agencies be so
slow to work with those who want to pursue much needed economic
activity on these public lands.
I hope that with your experience at the Alaska Department
of Natural Resources, you can bring to bear those experiences
on this agency. Do you think that you can speed up the permit
time?
Mr. Balash. Well, thank you, Senator Flake.
I believe that the overall management approach needs to
reflect the fact that these lands belong to the public, not
necessarily to the agencies that manage them, and with that
change in perspective or attitude we can be timely, efficient
and certain in the administration of permit applications and
adjudications.
Senator Flake. Right. Well, thank you.
Mr. Nelson, your position on BYU football ought to be
enough to secure your nomination, I am sure. But be that as it
may, one area that we want to talk about is cooperation between
Arizona and the Department on tribal water right settlements.
Just this morning I reintroduced the Hualapai Tribes
Comprehensive Water Rights Settlement Act. We have several
settlements that are in need of legislative action this year,
some are in the negotiation phase, others are being
implemented. Can you explain how your previous experience at
DOJ will help guide you as you work with us on these water
right settlements?
Mr. Nelson. Thank you, Senator, for the question.
When I was at the Department of Justice I had the
opportunity to work with Michael Bogert, who was Counselor to
Secretary Kempthorne, and he was heavily involved on these
Indian water rights settlements and they are complicated, to
say the least.
You have a situation where there's sometimes more claims on
the water than there is water and the tribes, their rights,
often predate many of the other water rights that exist and may
be being used. So everyone needs to come to the table. What I
found and what I saw was that the settlement discussions were
much more beneficial than years of protracted litigation that
ultimately, in many cases, didn't actually work to any good.
There are guidelines on how to settle those, and I would
intend to follow those and help expeditiously push those
forward.
Senator Flake. Right. Thank you.
The Chairman. Senator King.
Senator King. Thank you, Madam Chair.
Mr. Balash, I understand that as Commissioner of Natural
Resources in Alaska you filed some claims with regard to ANWR
for exploratory drilling and other claims. Now in your new
position you would be in a position to grant those claims. Do
you intend to recuse yourself? How are you going to handle
this, what looks to me like, conflict?
Mr. Balash. Thank you, Senator King.
The actions that we took at the Department of Natural
Resources in this particular context, as I recall, were
directed at the Fish and Wildlife Service. That is not going to
be one of the bureaus or services that reports to the position
I hope to be confirmed to.
Nevertheless, I absolutely commit to seek all the guidance
and advice I can get from our ethics counselor at the
Department of the Interior and follow that guidance to ensure
that there is no conflict in any particular decision that might
come----
Senator King. And I do not know the details of the issue,
but I think this is a question of appearance and public
confidence in our governmental process. So, I hope you will
consult with the ethics folks on that. Thank you.
On the baseload issue that Senator Heinrich mentioned, I am
also disturbed that the term baseload is becoming a political
term and not necessarily a scientific term. My only request is
when you are making these kinds of decisions, let's just go
with the science. I mean, I think that is obvious, but I think
that is the fall back. We will go with the science in terms of
what the grid can stand and what it cannot and where
reliability is, but I think that it is important that FERC not
get tangled up in, advertently or inadvertently, favoring one
technology over another and getting involved in the politics of
generation. I hope, Mr. McIntyre, that is the position you will
take.
Mr. McIntyre. Thank you, Senator.
Yes, I mean, FERC does not pick fuels among different
generating resources, and so it is important that it be open
to, as you say, the science which I would expand somewhat to
include also the characteristics of reliability and the
characteristics of economics and the other features that are
very important to satisfying the energy needs of our nation.
But yes, I absolutely commit to making decisions on those
bases.
Senator King. Mr. Glick, FERC has taken preliminary steps
over the past couple of years to reduce barriers preventing
distributed energy resources including, particularly energy
storage, to reducing those obstacles. Do you believe that FERC
has a continuing role in being sure that all resources can
compete equitably and evenly and the full value should be
provided for things like storage or distributed energy or
demand response kinds of resources?
Mr. Glick. Yes, Senator.
You know, much of distributed energy resources is regulated
at the state level. It's behind the meter technology, in many
cases, whether it be rooftop solar in some cases, storage or
even demand response.
On the other hand, those technologies also provide benefits
or can provide benefits at the wholesale market. So, for
instance, energy storage plays a potential to provide
significant reliability benefits at the wholesale electric
markets.
As you know, the Commission proposed a rulemaking recently
that would allow the storage facilities, as well as distributed
energy resources, an aggregate to participate in wholesale
energy markets. I don't want to comment on a specific matter
that I might be called upon to vote, but I will say that the
Commission does have a responsibility to prevent undo
discrimination against technologies. It's something, I think,
the Commission needs to take a look at. If I'm confirmed, I
certainly will do that.
Senator King. Well I think for both of you, you are
entering into these positions, assuming you are confirmed, at a
time of tremendous dynamism in the industry; an industry that
essentially was unchanged for 100 years, and now, suddenly,
there are so many different options.
That is going to be a real challenge to be sure that a
regulatory system that was established 70 or 80 years ago can
meet the needs and respond to the technologies of this, of the
coming decades,
both in terms of economics but also in terms of environmental
externalities.
Mr. McIntyre, your thoughts?
Mr. McIntyre. I agree fully with that perspective, Senator.
The----
Senator King. This is not your grandfather's FERC.
Mr. McIntyre. It is not.
The FERC operates under statutory standards that were set
in law decades ago, justness and reasonableness, avoidance of
undo discrimination, and yet our energy industry has, of
course, modernized itself significantly since then. And so, the
challenge at the FERC is to determine how to apply these
statutory standards to today's energy industry.
Senator King. I would hope that as you work through these
issues if you see areas where those statutes, which as you
point out are decades old, could stand some upgrading or
improvement or modernization, you will let this Committee know
so that we can work with you to be sure you have the
legislative and statutory tools necessary to respond to today's
market conditions. I hope you will do that.
Mr. McIntyre. Yes, thank you, Senator.
Senator King. Thank you.
Thank you, Madam Chair.
The Chairman. Thank you, Senator King, that was absolutely
right in line with what I was going to be asking next. I was
going to raise it in the context of----
Senator King. I was afraid you were going to say absolutely
wrong.
The Chairman. Oh, no, no.
[Laughter.]
You are right on the money this time.
Senator King. That long pause made----
The Chairman. Yes, yes, yes. I wanted you to think about
it. But you mentioned the evolving nature of the energy markets
and where we are and an agency that is somewhat locked into
your father's energy world. So whether it is the energy storage
that you have raised, the integration issues that we know
present themselves, the siting infrastructure--
Siting has become more and more difficult and certainly
more complicated whether it is for a wind farm, transmission
lines, natural gas pipelines, whatever it may be, and so how
you define or arrive at the appropriate balance of the
environmental concerns that need to be addressed with the needs
of the public to have adequate infrastructure, these are
important. These are imperatives, and finding that balance is
important.
We expect that you do that in your role. But to Senator
King's point, I would certainly want your assurance that where
you see whether it is the bureaucratic red tape or just the
overlay of regulations that have come over the years that have
not yet been, kind of, cleaned out, that we can have your
commitment to be working with the Committee to let us know how
we can make the process better. I am very worried that we do
not have alignment here with where the industry is going and
where our regulatory structure is currently. I am assuming you
both agree with that and recognize that we need to be working
together on this?
Mr. McIntyre. Yes, Madam Chairman, I absolutely do. And if
confirmed, I would look forward to playing a role in that.
The Chairman. Great.
Mr. Glick, because of your experience on this Committee you
have particular insight, I think, that you can hopefully share
with us.
Mr. Glick. Yes, Madam Chairman, I'd be glad to do that. As
my colleagues behind the dais there know, I already have a lot
of ideas that I'd like to put forward.
The Chairman. Yes.
Mr. Glick. But I would certainly be glad to work with you
all on that.
The Chairman. Good, good.
Mr. Nelson, let me ask you a question, and this relates to
some of what we have seen in the news of late. The Park
Service, some of the other agencies within DOI have been the
subject of numerous investigative reports from Interior's
Inspector General, subjects of which have even included the
previous Park Director himself, topics ranging from sexual
misconduct to really some major ethical violations.
What do you think needs to be done to improve not only the
Park Service but within the Department of the Interior as a
whole to avoid this kind of conduct by employees in the future
and to really make sure that there is a more positive and
conducive work environment for the employees and those who
visit our public lands?
Mr. Nelson. Yes, thank you.
I fully support Secretary Zinke's zero tolerance policy
regarding that type of behavior and those employees need to be
put on notice that if they get out of line then they will be
terminated. There is no way that the Department can operate
looking the other way on any of that type of behavior, and I
would fully support that.
I'd have to get in to see. I've read the public reports,
but I don't know exactly all of the details. So once I get in,
I'd be more than willing to work to stamp that out. I totally
agree that that type of behavior is unacceptable, particularly
as a public servant.
The Chairman. Well, we would certainly hope you make that a
priority. Thank you.
Mr. Balash, I do not need to remind you of the important,
the critical, commitment that we have to our nation's first
peoples. Alaska is home to half of the tribes in the country.
Through the Alaska Native Claims Settlement Act there is a
unique relationship between our tribes and the Federal
Government.
There has been a lot of discussion coming out of leaders in
the State of Alaska that have been concerned that consultation
between our tribes and the Federal Government and our agencies
has been more of a, just a check the box exercise. There has
been frustration on many levels. I know that this is not just
out of Alaska but in other parts of the country as well.
I would like your commitment to conduct meaningful and
consistent consultation with the tribes and native
organizations, not only in Alaska but across the country, and
to really involve them in appropriate decision-making that is
relevant to them. I would ask you to provide that level of
commitment to us.
Mr. Balash. Madam Chair, I'm fully committed to making sure
that we follow all of the law, but more importantly, that we
actually pay attention to what we're told in those consultation
sessions and that we take into account those very real needs
and concerns of the people who are most affected by the
decisions made by the Department.
The Chairman. Thank you. I appreciate that.
Next, let us go to Senator Cortez Masto.
Senator Cortez Masto. Thank you, Madam Chair.
Gentlemen, welcome and thank you for your willingness to
serve. Welcome to your families who I think have taken over the
whole room. It is wonderful to see you all here.
I am from Nevada and just came back from touring rural
Nevada. If you do not know, about 85 percent of the land in
Nevada is owned by the Federal Government. I think the Federal
Government owns more land in Nevada than any other state.
Because of that we interact on a regular basis with the BIA,
BLM, Bureau of Reclamation, DoD, Department of Energy, Fish and
Wildlife Services, Forest Services and the National Park
Service.
Mr. Balash, I would like to start with you because the
number one topic of conversation as I went around our rural
communities where there is farming and ranching and mining is
the BLM.
What I would really like to just get a commitment on, I
have already heard it but I just want to make sure that I can
hear it for purposes of Nevadans, is that you are willing to
work with all of those federal agencies. Number one, when an
issue comes up that we are dealing with, whether it is
addressing fire services or wild horses or sage grouse or lands
in Nevada, that you are willing to come to the table and be not
only a part of that discussion but bring your federal agencies
and work with them where we can streamline issues that we are
dealing with, work together for those resources and help us
bring those other federal agencies to the table. Are you
willing to do so?
Mr. Balash. Senator Cortez Masto, absolutely.
Senator Cortez Masto. Great.
The second question would be are you also willing then to
also come to the table when we have issues at a state, local
level, whether it is our state officials, local officials or
our tribes that are in Nevada, Native American tribes or key
environmental stakeholders to really find solutions? That is
typically how we work in Nevada, bringing everybody together to
find solutions to the issues and hoping that you would be at
the table and would be willing to do so. Is that a yes?
Mr. Balash. Yes, ma'am.
Senator Cortez Masto. And then I am curious about your
position on state's rights because of the positions you have
held before in Alaska. How do you see the role between the
states and the Federal Government and that interplay,
particularly where you are now?
Mr. Balash. Thank you, Senator.
Having previously served in a capacity where I managed a
large portfolio of land, water and a variety of resources, the
need to work with other agencies and specifically, federal
agencies, was something that we had to undertake on a regular
basis in nearly every case.
And I believe that you get much further when people come to
an understanding, jointly, collaboratively, by first
understanding the problems that each other has and then
identify solutions together.
That's an approach that I have seen work in my prior
positions, and I'm committed to doing that at the Department of
the Interior as well.
So as far as the words, state's rights, that's something
for the attorneys to argue about. And what I can tell you is
that I learned a lesson from a colleague long ago that just
because you can do something, doesn't mean you should. There
may be things that BLM or any of the other agencies in the
portfolio I hope to be confirmed to administer that there are
decisions that they can make unilaterally, but that doesn't
mean that they should and taking into account the views.
I'm going to be very deferential to the views of state and
local governments, also their elected Members of Congress. And
while I use the word, deferential, that's not an absolute.
There will be times when there's a pressing national interest
or concern that has to be taken into account, but it's going to
need to be a compelling one for me to be willing to even
consider going a different way.
Senator Cortez Masto. Thank you. Thank you for your
response.
Mr. Glick and Mr. McIntyre, let me, because I am running
out of time here, say just very quickly. I agree with
everything that I have heard here from my colleagues and the
need to recognize the evolving and changing markets that we
have out there. Electricity, what is happening with the new
technology. In Nevada alone, we are moving down the path of
renewable energy and renewable energy resources, and we are
very excited about it. So I have a couple questions, very
briefly--yes or no answers.
In the State of Nevada, we have a successful renewable
portfolio standard and have made great strides in creating a
clean energy economy. Do you agree that states have the
authority to establish the resource mix that best serves their
customers? Yes or no?
Mr. Glick. Yes.
Mr. McIntyre. Senator, I also say, yes.
Senator Cortez Masto. Do you agree that the evidence shows
that solar and wind power can be reliably integrated into the
power grid?
Mr. Glick. Yes, Senator. There are over nine states that
get more than 15 percent of their power from renewable energy
today, and none have had any reliability problems.
Mr. McIntyre. Yes, Senator, in part due to actions taken in
recent years by the FERC, renewable energy resources are making
their way, reliably, to our grid.
Senator Cortez Masto. Great. Thank you very much.
I know I am out of time. Thank you very much, Madam
Chairman.
The Chairman. Thank you, Senator.
Senator Hirono.
Senator Hirono. Thank you, Madam Chair. Welcome to all of
you and a special Aloha to my fellow GULC graduate, Mr.
McIntyre.
Mr. McIntyre. Thank you so much, Senator.
Senator Hirono. I will start with Mr. Balash. Hawaii has
the most ambitious renewable electricity goal in the country of
100 percent reliance on renewable sources by 2045 for
electricity, and the state has already attained 26 percent of
renewable electricity.
Hawaii is exploring its marine energy resources, including at
the Hawaii National Marine Renewable Energy Center, operated by
the University of Hawaii in partnership with the Department of
Energy.
Now, the Department of the Interior's Bureau of Ocean
Energy Management, BOEM, would be responsible for leasing
offshore areas for development of offshore wind, wave energy or
ocean thermal energy generation systems. In 2012, BOEM
established the BOEM/Hawaii Intergovernmental Renewable Energy
Task Force to promote planning and coordination and effective
review of requests for commercial and research leases. I want
your commitment to continue the Renewable Energy Task Force
with Hawaii.
Mr. Balash. Senator Hirono, thank you for the question. I'm
not familiar with that specific task force, but I look forward
to reviewing it and working with your office to make sure that
its work continues.
Senator Hirono. Good.
I want to also ask that you get back to me if you can make
that commitment which is what I am seeking, but not only to
commit, but to think about expanding BOEM's engagement with the
public marine renewable energy resource development and
continuing BOEM's support for ocean science to expand our
knowledge of the marine and coastal environments. So not only
to commit to what you are already doing in Hawaii but to expand
BOEM's efforts. So, we will chat about that, should you be
confirmed.
Another question for you, Mr. Balash. There are concerns
that have been expressed about this Administration's balancing
of commercial interests over conservation efforts, and these
concerns have been voiced by a number of groups and
individuals. And indeed, actions such as Secretary Zinke's,
basically, unprecedented review of national monuments have
raised concerns all across the country, including in Hawaii
which has a very large monument called Pu'ukohola Heiau.
During your time as Commissioner, and Senator King did
address this, you were involved in laying Alaska's claim to
20,000 acres of land. I think I heard you say that you would
take the appropriate actions to recuse yourself. I am assuming
that the Department has recusal and conflict of interest
guidelines that you would follow.
Mr. Balash. Senator Hirono, I'm absolutely committed to
following the guidance proffered by the Department's attorneys.
Senator Hirono. As I said, because there have been concerns
raised about how the Department or how your agency would
balance environmental, for example, versus commercial
interests, I would want your commitment that in future actions
you would bring to the table the stakeholders, such as the
environmental people and the commercial people, before you take
action.
Mr. Balash. Thank you, Senator Hirono.
In my prior post at the State of Alaska we regularly
brought in the various environmental organizations to make sure
that we had an open dialogue, were aware of the issues of
concern that they were monitoring, not only on state lands but
also federal lands and other private adjacent lands. So that is
a practice that is going to require a bigger scale in this
position, if confirmed, but I would seek to have a similar open
channel with those communities.
Senator Hirono. Yes. I think what we are looking for is an
open commitment to that kind of a process because apparently
that has not always been thus at your Department.
For Mr. McIntyre, you may know that Hawaii does not fall
within FERC's jurisdiction over interstate energy transactions
because there is no other contiguous state. But in 2012 the
FERC and Hawaii Pacific Utilities Commission signed an
agreement to share information on energy issues and regulatory
practices. At the time of the agreement, FERC recognized that
Hawaii could provide special insight into integrating high
levels of renewable energy, demand response, microgrids and
energy storage. From Hawaii's perspective, FERC's knowledge and
resources are especially helpful in adapting regulations to fit
the state's shift to 100 percent renewable electricity by 2045.
If you become Chairman of FERC, will you commit to continuing
FERC's information sharing with Hawaii?
Mr. McIntyre. Thank you, Senator.
FERC shares information and collaborates with various
levels of government and indeed, with other countries as well.
I think it's an important part of FERC's role. And if
confirmed, I would hope to continue in that tradition.
Senator Hirono. As I mentioned, I think Hawaii has some
unique experiences to offer in the areas that I talked about.
So it is not just an arrangement that you have with just
anybody, but Hawaii is uniquely positioned, perhaps, to provide
insights and allowing us to go forward with renewable energy
development and grid development.
Mr. McIntyre. Yes, I understand. Thank you, Senator.
Senator Hirono. Thank you.
Thank you, Madam Chair.
The Chairman. Thank you, Senator Hirono.
Senator Duckworth.
Senator Duckworth. Thank you so much, Madam Chair.
To date, gentlemen, 30 states have passed renewable
portfolio standards, and I would like to return the
conversation back to state's rights.
Never thought you would hear so much about state's rights
from Democrats, huh? But here we are. Multiple states,
including Illinois, have adopted policies to support existing
nuclear power plants. We have more nuclear power plants than
any other state in the nation. States are enacting these
policies for a wide variety of reasons, ranging from improving
energy diversity to helping the environment and boosting
economic development.
Mr. Glick and Mr. McIntyre, you have answered this before
with my colleague from Nevada, but I just want to be sure that
I can get your reassurance that you would agree that state
level energy policies, as passed by the duly elected
legislators and governors of each state, that this is the
appropriate place for these policies to be decided, in the
states.
Mr. Glick. Senator, Congress has left for the states the
authority over utility resource decision-making, so that's not
in FERC's role.
I think the Supreme Court in the Hughes case essentially
outlined how states could make resource decisions and not
interfere with FERC's jurisdiction, and I think, without
prejudging any particular matter, I think the Hughes case is
something I will certainly follow.
Senator Duckworth. Thank you.
Mr. McIntyre?
Mr. McIntyre. Yes, thank you, Senator.
We do have a federal system of law. The FERC has its role
and the states have theirs and there is no question the states
have the absolute right to implement these renewable portfolio
standards.
Senator Duckworth. Thank you.
Certainly those as applied in Illinois fall under that
Supreme Court decision.
Infrastructure has been at the front of the mind for us
here in Congress. I believe the right kind of the
infrastructure does not just have the capacity to create
thousands of jobs in the short-term but also should have the
capacity to deliver economic opportunity in the very long-term
as well.
Mr. Glick and Mr. McIntyre, if confirmed, how would each of
you work through FERC to promote greater investment that will
both modernize and expand our nation's energy transmission
infrastructure?
Mr. McIntyre. Thank you, Senator.
FERC's role in energy infrastructure is what I think of as
its original jurisdiction, going back to hydroelectric power in
1920 and then expanded to natural gas facilities in the 1930s.
States here have a role as well. Generally speaking,
electric transmission infrastructure is cited at the state
level. So that, of course, is something that the FERC must
continue to respect.
I can commit to you that, if confirmed, these are areas
that are important issues and I would hope to bring the
attention that these issues deserve to them.
Senator Duckworth. Thank you.
Mr. Glick?
Mr. Glick. So Senator, there are a number of various
infrastructure investments that we're talking about in the
energy industry. As Mr. McIntyre mentioned, some are more
within FERC's jurisdiction than others, but I want to talk
about electric transmission for a second because we clearly
need additional electric transmission, both to access remotely
located renewable resources but also to reduce congestion and
allow consumers to have greater access to less expensive power.
I think the Commission's siting authority is very limited
there. That's mostly an issue left up to the states, but the
Commission does have other authorities.
For instance, in Order 1000 it required utilities to engage
in regional transmission planning. I think that's worked pretty
well. It also has various incentive rate authorities that
Congress gave it, I think, in 2005 that would encourage the
investment in additional transmission resources.
So I think it's something that the Commission does have a
broad set of policies that can produce increased investment,
it's just not on the siting front.
Senator Duckworth. That is a real concern of mine, the
balancing of what consumers can afford against what, really,
are tremendous costs that are required to upgrade existing
facilities. I do not see how we, as a nation, compete on a
global scale when we have aging infrastructure at all levels.
That is a real concern that I would ask both of you to
really think about how we balance that out and yet still be
able to make the commitments to investment and promoting
investments so that we can truly compete on a global scale when
it comes to our energy infrastructure. In fact, you know,
energy and energy infrastructure also have a tremendous impact
on our environment. Given that, what role should FERC play
toward securing a cleaner environment?
Mr. Glick. Well, Senator, I'm not aware FERC has much of a
straightforward, direct role in promoting environmental
enhancement. That's certainly left up to the EPA and other
agencies, as well as the Congress. But I would say that FERC
has, in terms of, and I mentioned this in my opening statement,
in terms of reducing barriers to cleaner technologies such as
distributed generation or energy storage could help promote,
enhance environmental benefits, but also economic benefits as
well.
Senator Duckworth. Thank you.
Mr. McIntyre?
Mr. McIntyre. Senator, I agree with the suggestion that the
FERC is not an environmental regulator per se. I think it's
important for FERC to keep its eyes open to opportunities to
advance public policies in areas where there are, where the
FERC's jurisdiction does extend, including in through our
relevant environmental aspects to look at. This is something
that has been growing recently in the FERC's consideration of
natural gas pipeline applications.
Senator Duckworth. Well, I agree with both of you and I
think it is important for FERC to remain, to keep, a non-
discriminatory attitude toward any specific energy, as long as
we can continue to move the ball forward in that.
Thank you so much.
Thank you, Madam Chair.
The Chairman. Thank you, Senator Duckworth.
Senator Franken.
Senator Franken. Thank you, Madam Chair.
We are seeing devastating wildfires across the West right
now. I have heard from colleagues about the effects in
California and Washington and Oregon and Montana, just to name
a few.
Now, about a month ago, this Committee held a hearing on
wildfire technology and we heard a lot about the importance of
hazardous fuels treatment. We know that removing hazardous
fuels lowers wildfire risk, but we also know that right now it
is not economical to do so and we have so much fire borrowing
that the economy here is an issue. So we have to find a market
for these fuels, if we can.
Now in the past I have discussed the possibility of
hazardous fuel management supplying biomass for district energy
projects or combined heat and power plants, especially in the
wildland urban interface because, stay with me here, you have
the wildland and you have the urban, and the wildland would
have the forests, say, and the hazardous fuels and the urban
part would need electricity and heat and cooling in the summer
and also their houses they are in and that you do not want to
burn up.
To me, doing this would expand distributed energy systems
which would boost grid reliability and resilience but it would
also lower the risk of wildfires significantly. It seems like,
kind of, a win/win to me.
Now, Mr. Balash, if you are confirmed for this position you
would be responsible for overseeing the Bureau of Land
Management and dealing with thousands of wildland fires that
occur on BLM land every year.
So my question is, and especially in the wildland urban
interface, do you think that we can find a way to incentivize
the use of hazardous fuels to generate electricity? In other
words, can we recognize the co-benefit of wildfire risk
reduction in these cases you see there?
Mr. Balash. Senator Franken, I look forward to reviewing
the particulars that relate to locations across the United
States, but I know in my home state, in the community of Tok, a
remarkable demonstration has occurred there where fire breaks
around the surrounding community to protect it against
wildfires from the Tanana Valley State Forest have been used
successfully to generate heat in the core of the community for
the school district and also for some of the residential and
commercial buildings in the nearby area. So not only district
heating but also power gen has been done effectively and
economically through the use of biomass collected from these
fire breaks.
Senator Franken. So you like this idea?
Mr. Balash. I love it.
[Laughter.]
Senator Franken. Okay.
The Chairman. That is good to know.
Senator Franken. Madam Chair, thank you. Because I know the
Chairwoman has also been very interested in this.
I will move on to my next point. Distributed energy and
energy storage technologies help improve the reliability and
resiliency of the electric grid. This is especially true in
disaster situations.
During Superstorm Sandy, large sections of the grid went
down; however, some communities were able to keep the lights on
because of distributed generation, like combined heat and
power. With Hurricane Harvey last month and Hurricane Irma now,
I think this is more important than ever. FERC can play an
important role in promoting these technologies. Late last year
FERC started a rulemaking to ``remove barriers to the
participation of electric storage resources and distributed
energy in electricity markets.''
Mr. McIntyre, what role do you see energy storage playing
in the future in the electricity markets and transmission
systems and how can FERC help ensure that energy storage is
receiving proper compensation for the benefits that it provides
to the grid?
Mr. McIntyre. Thank you for the question, Senator.
Energy storage's role in satisfying our nation's energy
needs is growing year after year irrespective of any action by
the FERC. Your question recognizes that there is a pending
matter before the FERC looking at storage's role in energy
markets overseen by the FERC, so it wouldn't be appropriate for
me to indicate a specific position on that.
But as a general philosophical matter, I'm very much an
all-of-the-above person when it comes to the resources that we
need to satisfy our energy needs and energy storage should
validly be recognized as a growing part of that.
Senator Franken. I am very glad to hear you, well, I know
you cannot take a position. If you are confirmed, will you
finalize the rulemaking for storage and distributed resources?
Mr. McIntyre. Senator, I have not had an opportunity to
review the record of it. I certainly can commit that I would
look at that record and determine, for starters, whether it
needs to, whether it's a good record on which to proceed to a
decision, and if not, take stock from there as to any
additional record steps that would be needed. But I absolutely
commit to you that, if confirmed, I would give the matter the
attention it deserves.
Senator Franken. Okay, thank you, thank you very much.
Thank you, Madam Chair.
The Chairman. Thank you, Senator Franken.
I have just about one question for each of you.
Let me begin with a question directed to our FERC nominees.
This relates to the Alaska gas line project. I am not going to
ask you to prejudge any pending application out there, but I am
sure you are aware back in 2015 the Department of Energy
granted a conditional authorization for the Alaska gas line to
export LNG to countries that do not have a free trade agreement
with the United States. This was a pretty big milestone in our
efforts to advance a gas line, and then in April of this year,
the Alaska Gas Line Development Corporation filed their
application with the FERC. It may be the largest application
ever. I am told it is about 58,000 pages. I bet you just cannot
wait to jump into this.
[Laughter.]
But I know that all applications, particularly applications
of this size, take a significant amount of work by staff and by
the Commissioners and I had an opportunity, prior to the
submission of the application, to speak with those that were at
FERC at the time about just the ability of the Commissioners
and the staff to wade through an application of this size in a
way that gives it the thorough consideration that I think it
deserves but to do so in a timely and a predictable way. I
would just ask the two of you, assuming that you are going to
be confirmed, which I believe you will and I look forward to
that, but that you would give it the same considered effort,
even though it may be just physically daunting to even look at.
Mr. McIntyre. Well, thank you, Senator.
Let me say that I believe that FERC's role in approving
energy infrastructure projects, including specifically natural
gas facilities along the lines that you referenced, is one of
its most important roles. I'm not surprised by the 58,000 page
figure you cite. These are inherently complex matters. They're
not only highly technical facilities involved, but they raise
complex environmental and community issues, all of which need
to be considered carefully. If confirmed, you have my
commitment. I will give the matter the full attention it
deserves.
The Chairman. I appreciate that.
Mr. Glick. Yes, Madam Chair.
I think it's important, not only for the applicant, but for
all stakeholders involved in the process that FERC act in a
timely and predictable manner. And 58,000 pages certainly
sounds like a daunting matter, but I think the Commission has a
lot of staff, a lot of responsibility, a lot of history with
regard to these efforts and I think certainly there are ways to
expedite this matter.
The Chairman. I agree and thank you for that.
Just as a follow-on, more as a principle, as a policy
matter. Again, without asking you to prejudge anything here, do
you support Alaska's efforts to advance its stranded gas?
Mr. McIntyre. Madam Chairman, I'm concerned that commenting
on it might cross the line into suggesting a position on the
Alaska gas line project, so I prefer to refrain from doing
that. But certainly as to any state, I support the efforts of
each and every state to advance its energy cause.
The Chairman. Yes, I do not want to put you in a situation
where you do not feel comfortable in answering that.
Mr. Glick, I will assume that you are going to tell me a
similar response here.
Mr. Glick. Yes, I would, but I'd just add a note. The
Department of Energy has already acted. The Department of
Energy determines whether natural gas should be exported.
FERC's authority is very limited----
The Chairman. Right.
Mr. Glick. In terms of just assessing the facilities
whether they qualify for a certificate of public convenience
and necessity.
The Chairman. Fair enough. Fair enough.
Mr. Balash, we recognize that in Alaska everybody thinks
about our oil and our gas assets. We know that they are
considerable, but we always remind folks that we have more than
just oil and gas. Our coal is considerable, our mineral wealth
is considerable, but we also have extraordinary opportunities
when it comes to renewables. You, in your position as
Commissioner of Natural Resources for the State of Alaska, had
an opportunity to work to advance some of our other
considerable resources.
I want to give you just a quick moment here to speak to
your involvement with advancing renewable resources within the
state at the same time that we were working to advance our oil
and gas and coal and mineral resources.
Mr. Balash. Thank you, Madam Chair.
Even before my appointment at the Department of Natural
Resources, when I was working in the Office of the Governor, I
was part of the team that helped deliver a goal for the State
of Alaska to achieve 50 percent of its electric generation by
renewable sources.
At the same time, we were working with our legislature to
establish a renewable energy fund to help bring capital to the
table for communities and regions that we're seeking to provide
renewable sources of power generation as an alternative to the
diesel that is used in most parts of our state.
At the Department of Natural Resources, I had the
opportunity to work on a variety of renewable energy projects,
including in support of the exploration at Mount Spur for
geothermal resources. We conducted a lease sale for Mount
Augustine to also lease out the geothermal rights for that
particular volcano. And in what I consider to be my own
backyard, for Golden Valley Electric Association there was the
Eva Creek Wind project where it was state property that had the
best potential in proximity to interties to put up and erect
wind turbines that we first had to wrangle through what the
proper valuation methodology was to ensure that the public
received a fair share, so to speak, of the value of its real
estate that happened to be in a nice, consistently windy place
near Healy. So I think if you take a clear-eyed look at our
track record as a state, we have a very balanced approach and
one that I've been proud to be a part of.
The Chairman. Good. I appreciate that, and I appreciate
your leadership, certainly, at the time.
I do want to include as part of the Committee record today
some letters of support that we have received on your behalf,
Mr. Balash. So we will include that as part of the Committee
record today.
[The information referred to follows:]
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
The Chairman. I think we should note for the record that as
we have our two FERC nominees and the one who has been named to
head up the FERC and we are talking about reliability that we
seem to be going in and out of the lights here today. I do not
understand why. We have checked and nobody is leaning against
the light switch. So, I do not know whether you should take
this as an omen, good or bad.
[Laughter.]
That is up for you to determine.
But reliability, it is all key.
I am going to ask the last question to you, Mr. Nelson.
When we spoke in my office, and I thank you for the
conversation, I mentioned ANILCA, the Alaska National Interest
Land Conservation Act. In Alaska that is, kind of, our manual
of operations almost.
There are contained within ANILCA several provisions that
we collectively refer to as the ``no more'' clauses and there
are sections specific to withdrawal of lands, public lands, in
Alaska. New withdrawals cannot be in excess of 5,000 acres in
aggregate. If a
withdrawal exceeds that, it cannot be effective unless and
until Congress acts affirmatively. And it goes further than
that. It disallows certain studies of federal lands in the
state for establishing conservation system units, national
recreation areas, national conservation areas or other areas
that are prohibited or, excuse me, they are prohibited unless
authorized by Congress.
Again, I am not asking you to whip out your ANILCA here and
tell me word for word how you interpret the new ``no more''
clause, but I would ask you, generally, if you can share with
me how you view the meaning of these various clauses within
ANILCA and what it means for Alaska when it comes to for
purposes of withdrawal.
Mr. Nelson. Thank you, Senator.
I am familiar with ANILCA and, obviously, this is a
complicated question. I fully understand how unique Alaska is
and the protections that were granted to Alaska in the
negotiation that was done in adopting that statute. As to the
``no more'' clause, I think the language is pretty clear that
if it's a withdrawal that it's not permitted and then you get
into a legal discussion of what a withdrawal is.
And you know, not being at the Department at this point
it's hard for me to go much further than that, except to say,
we certainly, I'm certainly aware of the commitments that were
made to Alaska and have every intention of keeping that and
reviewing the statute and giving it full consideration.
The Chairman. Good. I appreciate that.
We look at it pretty literally. No more means no more, and
we wish that we could get a more clear interpretation more
often out of our agencies.
As you review, again, I mentioned to you that I think it is
important that those in our agencies, who are implementing
provisions under ANILCA, know and understand and really
appreciate.
So there are ANILCA backgrounder trainings that certainly
those in Alaska have undergone, but I think even more
significant than those in Alaska, those here in Washington, DC,
that are making decisions that have impact on us back home,
have that understanding, that knowledge, that awareness and
would certainly encourage that within the Solicitor's Office.
Mr. Nelson. Senator, you've got my commitment that I will
make sure that all 300 attorneys have read ANILCA within a
month of me being confirmed, if that happens.
The Chairman. I am pretty sure most of them have, but a
little refresher is not a bad thing. Again, we can certainly
provide some level of expertise, but thank you for that.
Gentlemen, I thank you for the time that you have given the
Committee this morning and appreciate all that you are offering
of yourself, your professionalism, your expertise, your time.
To the families that are sitting behind you, who are the
support for these leaders, thank you, because it means that
there is going to be less time at home doing some of the family
things that one would like. This is an important service to our
country and we, certainly, appreciate that.
As I mentioned at the outset, it is my hope that we will be
able to advance your names out of Committee here shortly.
I do think it is important that whether it is the FERC and
restoring FERC to a full quorum or providing the Secretary, in
this case the Secretary of the Interior, his team to be working
on these issues that we all recognize are very important. We
cannot get you there fast enough. So know that it is my
intention to urge my colleagues to get their questions for the
record in and ask you to be rapid with your responses so we can
get your names moved through so that you can get to work.
With that, I thank you and thank those who have joined us
today.
The Committee stands adjourned.
[Whereupon, at 12:23 p.m. the hearing was adjourned.]
APPENDIX MATERIAL SUBMITTED
----------
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
[all]