FutureGen and the Department of Energy’s Advanced Coal Programs

Opening Statement By Chairman Brian Baird

Good morning. I would like to welcome everybody to the Energy and Environment Subcommittee’s hearing on “FutureGen and the Department of Energy’s Advanced Coal Programs.” I would like to thank our expert panel of witnesses for being here today and I look forward to your testimony about the potential role advanced coal technologies, including carbon capture and storage, may play in helping to solve the daunting challenge of climate change and ocean acidification.

We burn a lot of coal in this country and around the world. The United States is one of the largest consumers of coal and this is one of the major reasons we are one of the largest emitters of greenhouse gases. But we are not the only country with strong dependence on coal. China and India have both expanded their coal use, and in 2007 China surpassed us to become the largest contributor to global CO2 emissions. I do not say this to point fingers, but to point out that climate change truly is a global problem, and we must work with other developed nations and developing economies to find solutions to this staggering problem.

I think the United States should take the lead in reducing energy consumption and particularly consumption of fossil fuels. We have a variety of tools at our disposal to accomplish that goal. We can develop and deploy advanced, green technologies, adopt better conservation practices and energy efficiency policies, and as individuals, behave more responsibly. Without bold policies and public and personal commitment, we run the risk of serious damage to our environment and our society. That outcome is simply unacceptable.

If 41 percent of our global electricity supply comes from burning coal, then it is imperative that we curtail the greenhouse gas emissions from this major source. And we must act now to do so. I recognize that approximately 50 percent of the power supply in the United States comes from coal-fired power plants, so we can’t expect to tackle this challenge overnight. But, it is my sincere hope and expectation that we can devise a strategy forward that achieves remarkable reductions in greenhouse gas emissions in a safe, responsible and sustainable manner.

Today’s hearing provides us with an excellent opportunity to discuss our overall strategy to reduce emissions from large stationary sources, such as our electric generation plants. I think there are some lessons we can learn from the decisions made about the FutureGen program and I am hopeful that we can have a very honest conversation today about the near-term and long-term objectives for the Department of Energy’s advanced coal programs.

Finally, I am pleased that this hearing will include an important dialogue about international collaboration on strategies for implementing carbon capture and sequestration systems. As I said, climate change is a global problem and it requires a global solution.

Again, I thank the panel for being here this morning and I look forward to your testimony and an interesting discussion.

Opening Statement By Senior Member Jerry Costello

Thank you, Mr. Chairman for calling today’s hearing on the FutureGen project. The FutureGen project has been one that I have worked on very closely over the past five and a half years and I am interested in hearing from GAO and our other witnesses on this issue.

Mr. Chairman, we generate over one-half of our electricity from coal and the coal reserves in my home state of Illinois contain more Btu's than the oil reserves of Saudi Arabia and Kuwait. Like many, I want our nation’s energy policy to help reduce carbon emissions and adequately address the real concerns of climate change. In order to meet these goals, our dependence on coal requires a significant investment in clean technologies to reliably burn coal as efficiently and as cleanly as possible. The reality is that our dependence on coal as an energy source is not going away. We are not alone in our reliance on this energy source; to satisfy its rapidly growing population and economy, China is adding one new coal-fired plant to its power grid each week.

For these reasons, the day after the President announced the FutureGen Clean Coal Initiative in his 2003 State of the Union address, I was on the phone with the Department of Energy (DOE), working to get the project off the ground. After five years of work with DOE, with the FutureGen Alliance, the State of Illinois and others, I was extremely disappointed that DOE decided to scrap the project in favor of a “re-scoped” plan. I was pleased to join Chairman Gordon, Chairman Baird, and Mr. Lipinski in requesting GAO to further examine the reasoning behind the decision to abandon the original project.

I have stated previously during Science Committee hearings that I did not find DOE’s justifications for cancelling FutureGen to be based on accurate information or factual analysis. GAO’s final report affirms what we thought from the beginning: to quote directly from the report, “DOE did not base its decision to restructure FutureGen on a comprehensive analysis of factors, such as the associated costs, benefits and risks…[consequently] DOE has no assurance that the restructured FutureGen is the best option to advance CCS.”

As a supporter of clean coal technology, I am focused on getting this project back on track. DOE’s decision has already meant wasted time, and has delayed the project for over a year at a time when the need for public investment in clean, efficient energy technologies could not be more evident. Despite DOE’s decision to back away from its agreement with the FutureGen Alliance, an international non-profit consortium of some of the largest coal producers and users in the world, the group did not dissolve, but in fact continued its commitment to the project by purchasing the land for the plant in Mattoon, Illinois. With the legal and environmental issues surrounding this project already resolved and its investors still committed, FutureGen is as shovel-ready as any other clean coal project in the country. It is my hope that with new leadership and new analysis, the FutureGen project can realize its full potential to become world's first coal-fueled, near-zero emissions power plant.

Thank you, Mr. Chairman, and I look forward to hearing from our distinguished panel of witnesses.
 

Witnesses

Panel

0 - Dr. Victor K. Der
Acting Assistant Secretary U.S. Department of Energy U.S. Department of Energy
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0 - Mr. Mark E. Gaffigan
Director Natural Resources and Environment Team U.S. Government Accountability Office Natural Resources and Environment Team U.S. Government Accountability Offi
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0 - Ms. Sarah M. Forbes
Senior Associate Climate and Energy Program World Resources Institute Climate and Energy Program World Resources Institute
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0 - Mr. Robert J. Finley
Director Energy and Earth Resources Center Illinois State Geological Survey Energy and Earth Resources Center Illinois State Geological Survey
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0 - Dr. Larry Monroe
Senior Research Consultant Southern Company Southern Company
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