Revisiting the Industrial Technologies Program (ITP): Achieving Industrial Efficiency

Opening Statement By Chairman Nick Lampson

Good afternoon. Welcome to this hearing on the Department of Energy’s Industrial Technologies Program and the discussion draft of my bill, The Industrial Energy Efficiency Act of 2007.

I would like to thank our distinguished panel of witnesses for joining us today. We look forward to hearing your perspectives and about your experiences with the Industrial Technology Program as we seek to highlight and enhance its important work.

The program carries out this mission through a coordinated program of research and development, and dissemination of technologies and operating practices.

The Industrial Technology Program leads the federal government’s on-going effort to improve energy efficiency and environmental performance of the nation’s industrial sector in partnership with industry and universities. These efforts not only improve the bottom-line of a wide variety of industries, but enhance the quality of life for American workers, families, and communities they serve.

Unfortunately, we have seen the budget for this program drop rapidly in the last few years. The administration’s FY 2008 budget request for the program is a fraction of what it was in the FY 2001 appropriation.

Today our witnesses will identify opportunities to improve this important program. My region of the country has a significant stake in this issue.

Many energy-intensive industries, most especially chemical manufacturing and petroleum refining, are located east of Highway 35 in Texas. These industries face several challenges to their continued economic strength, and many other businesses in my area depend upon the health of these core industries.

There is significant pressure to reduce the emissions and energy use associated with their processes, while keeping costs low enough to maintain the region’s attractiveness to industry. That’s a tall order when costs for natural gas, one of the primary industrial feedstocks, are among the highest in the country.

Texas has the highest percentage of large energy-intensive industries, 8percent of the U.S. total. Texas consumes 20% of the energy used by U.S. industry. Over half of the energy used in Texas is consumed by the industrial sector.

It is said that the cheapest energy is the energy you don’t have to use at all. With energy costs as high as they are, increasing efficiency through technology advancement is key to keeping these core industries located in the U.S.

Clearly, increasing energy efficiency is in everyone’s interest and the Industrial Technology Program is an important avenue for achieving this important economic, national security, and environmental goal. I look forward to the testimony and recommendations of our witnesses.

Witnesses

Panel

4 - Mr. Malcolm E. Verdict
Associate Director, Energy Systems Laboratory Texas Engineering Experiment Station Texas A&M University Texas Engineering Experiment Station Texas A&M Universit
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1 - Mr. Fred Moore
Global Director Manufacturing and Technology Dow Chemical Company Manufacturing and Technology Dow Chemical Company
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3 - Mr. Lawrence Kavanaugh
Vice President Manufacturing and Technology American Iron and Steel Institute Manufacturing and Technology American Iron and Steel Institute
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2 - Mr. Paul Cicio
President Industrial Energy Consumers of America Industrial Energy Consumers of America
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