The United States Senate will soon render its advice and consent
to the nomination of Steven Chu as the new secretary of the
Department of Energy (DOE).
In addition to overseeing the agency's duties conducting energy
research and dealing with nuclear waste issues, a good secretary of
energy also needs to stand as a secretary for energy--in
favor of plentiful and affordable energy supplies for the American
people and a supporter of the free market processes that work best
to provide them. The federal government already has several
anti-energy forces in place, particularly the Environmental
Protection Agency, whose statutory duties require it to impose
environmental constraints on energy production and use, especially
fossil fuels, and often without regard to cost. Therefore, it is an
important part of the secretary of energy's job to act as a
pro-energy counterweight to EPA rather than as a redundant
anti-energy voice within the executive branch.
Therefore, when considering Chu for this post, the Senate should
consider asking him the following questions.
Question #1: Gasoline Prices
Last September you made the statement that "somehow we have to
figure out how to boost the price of gasoline to the levels in
Europe," which at the time exceeded $8.00 a gallon. As secretary
of energy, will you speak for or against any measures that would
raise the price of gasoline?
Answer: Clearly, the American people want energy that is
more affordable, not less. High gasoline prices hurt everyone,
especially those with low incomes, and weaken the overall
economy.[1] It is the role of the secretary of energy
to work for the benefit of the American people by advocating
policies that keep energy as inexpensive as possible. To do
otherwise would be fundamentally at odds with the very purpose of
the Department of Energy.
Question #2: Coal-Fired
Electricity
You have also stated that American electricity prices are
"anomalously low" and that "coal is my worst nightmare," largely
due to its contribution to global warming. As secretary of
energy, will you support coal-fired electric generation in order to
provide affordable electricity for the American people?
Answer: Coal is the one energy source America has in
overwhelming abundance, and it currently provides 50 percent of
America's electricity. Without it, electric bills would be much
higher. The DOE will continue to conduct research into alternatives
to coal as well as means to reduce its environmental impact. But
major breakthroughs are a long way off from viability, and it is
important for the DOE not to over-promise on them. Premature
efforts to shift away from conventional coal use would do great
harm to the American economy. Being anti-coal is precisely the kind
of misguided approach a secretary of energy should be fighting
against.
Your statements in support of both higher gasoline and
electricity prices are evidence of a belief that the American
people would be better off if energy (and especially fossil fuels)
was deliberately made so expensive that individuals and businesses
were forced to use less of it. This anti-energy, anti-consumer, and
anti-economy view is popular enough among environmental activists
inside and outside the federal government, but it has no place at
the Department of Energy, where energy affordability should not
take a back seat to an environmental agenda.
Question #3: Alternative Energy
Are you going to take a realistic
approach toward alternative energy sources, with particular regard
to the continued need for conventional energy supplies until such
time as alternatives are ready to replace them?
Answer: DOE needs to be realistic about its research into
energy alternatives, especially about the timeframes it will take
for truly viable--both technologically and
economically--alternatives to emerge. The process will likely take
decades, not years. Furthermore, the role of the Department of
Energy in trying to accelerate the process by picking winners and
losers among emerging alternatives is one with a disappointing
track record.[2] A realistic approach toward alternatives
leads to the conclusion that the age of fossil fuels--petroleum for
transportation and coal for electric generation--is not yet over,
so the secretary of energy should support efforts to ensure that
those time-tested energy sources are as plentiful and affordable as
possible until such time as alternatives are genuinely ready to
carry the load. To endorse shutting the door on conventional energy
based on the wishful thinking that replacements are just around the
corner would make for a very regrettable energy policy.
Question #4: EPA Regulation of Carbon
Dioxide
Last July, the Department of Energy spoke out against the EPA's
Advance Notice of Proposed Rulemaking (ANPR) to regulate carbon
dioxide and other greenhouse gas emissions under the Clean Air Act
(CAA). As secretary of energy, will you continue to be a voice
of economic reason and energy policy rationality on this and other
problematic global warming measures?
Answer: The DOE detailed its significant concerns with
the ANPR, stating that the EPA's proposal "lacks the comprehensive
and balanced discussion of the impacts, costs, and possible lack of
effectiveness" were fossil energy use to be regulated in this
manner. Beyond the merits of DOE's comments, the very fact that the
agency weighed in so strongly against the EPA and its ill-advised
proposal demonstrates an important role the secretary of energy
needs to continue playing in the global warming debate.
Question #5: Nuclear Energy
You have publicly recognized the critical role of nuclear energy
in meeting our nation's growing energy demand. You have also
suggested that with nuclear fuel recycling a permanent geologic
repository at Yucca Mountain is not essential.[3] What is your
position on the scientific viability of Yucca Mountain, and do you
support allowing the Nuclear Regulatory Commission to complete its
review of the Department of Energy's permit application for Yucca
Mountain?
Answer: While recycling used nuclear fuel will likely be
a critical element to any comprehensive used nuclear fuel
management strategy, it is unclear that such processes will
alleviate the need for some permanent geologic storage. This is
especially true for America's defense-related nuclear waste, which
requires permanent geologic storage.
Although President-elect Obama and others have voiced opposition
to Yucca based on concerns over safety, the Nuclear Regulatory
Commission, whose job it is to make such determinations, is
currently reviewing the Department of Energy's application to build
Yucca. It should be allowed to carry out its mission.[4]
Outside of defense-related activities, one of the primary jobs
of the DOE is to dispose of the nation's commercial nuclear waste.
The problem is that the DOE has an abysmal record in carrying out
this mission. While America's energy consumers have paid the U.S.
government roughly $28 billion (payments and interest) to dispose
of nuclear waste, the U.S. government has collected no waste from
utilities. In addition to that, there is no consensus on how to
move forward.
This is in direct contrast to nuclear fuel-related activities
and power plant operations. Both of these functions are privatized
and operate safe and efficiently. Only so-called back-end
activities (or those related to waste management) fall under the
purview of the federal government, and only they remain
dysfunctional. That is why it is essential to begin the process of
moving responsibility of waste management to those that produce the
waste.[5]
A Secretary for Energy
Even when DOE does not have regulatory authority, it can be a
powerful pro-energy voice that needs to be heard. It is crucial for
the secretary of energy to remain a secretary for energy as a
number of energy policy initiatives, global warming-related and
others, are considered in the years ahead. Beyond its role
conducting research and dealing with nuclear waste issues, this
pro-energy advocacy role may be the most important one that the
secretary of energy oversees.
Ben Lieberman is Senior
Policy Analyst in Energy and the Environment and Jack Spencer is Research
Fellow in Nuclear Energy in the Thomas A. Roe Institute for
Economic Policy Studies at The Heritage Foundation.
For More Information:
Jack Spencer and Daniella Markheim, "Protectionism Won't Fuel a
Nuclear Renaissance," Heritage Foundation Backgrounder No.
2221, December 16, 2008, at
http://www.heritage.org/Research/Energy
andEnvironment/bg2221.cfm.
Jack Spencer and Nicolas Loris, "Washington Subsidies Not
Necessary to Rebuild U.S. Nuclear Industry," Heritage Foundation
Backgrounder No. 2207, November 10, 2008, at
http://www.heritage.org/Research/Energy
andEnvironment/bg2207.cfm.
Jack Spencer, "Time to Fast-track New Nuclear Reactors,"
Heritage Foundation WebMemo No. 2062, September 15, 2008, at
http://www.heritage.org/Research/Energy
andEnvironment/wm2062.cfm.
Jack Spencer and Nicolas Loris, "Uranium Mining Is Important for
Securing America's Energy Future," Heritage Foundation
WebMemo No. 1866, March 25, 2008, at
http://www.heritage.org/Research/Energy
andEnvironment/wm1866.cfm.
Jack Spencer, "Competitive Nuclear Energy Investment: Avoiding
Past Policy Mistakes," Heritage Foundation Backgrounder No.
2086, November 15, 2007, at
http://www.heritage.org/Research/Energyan
dEnvironment/bg2086.cfm.
Ben Lieberman, "The True Costs of EPA Global Warming
Regulation," Heritage Foundation Backgrounder No. 2213,
November 24, 2008, at
http://www.heritage.org/Research/En
ergyandEnvironment/bg2213.cfm.
David Kreutzer, Ph.D. and Karen Campbell, Ph.D., "CO2-Emission
Cuts: The Economic Costs of the EPA's ANPR Regulations," Heritage
Foundation Center for Data Analysis Report No. 08-10,
October 29, 2008, at
http://www.heritage.org/Research/
Energyandenvironment/cda08-10.cfm.
Ben Lieberman, "Falling Oil Prices: Useful Lessons from the
Slump at the Pump," Heritage Foundation WebMemo No. 2106,
October 17, 2008, at
http://www.heritage.org/Research/
EnergyandEnvironment/wm2106.cfm.
Ben Lieberman, "Whole New World?" Heritage Foundation
Commentary, September 29, 2007, at http://www.heritage.org/Pres
s/Commentary/ed092707d.cfm