The Department of Energy’s FutureGen Program

Opening Statement By Chairman Bart Gordon

Good morning.

Thank you, Chairman Lampson.  I am very pleased that the Energy and Environment Subcommittee is holding this hearing today to receive testimony on the Department of Energy’s major restructuring of its centerpiece climate change program, FutureGen.

This committee worked diligently and carefully to include increased authorization levels for a comprehensive carbon capture and sequestration program.

We are well aware that implementing such a comprehensive carbon capture and storage system for the nation is vastly complicated.  Until less than three months ago, FutureGen was a significant part of the federal government’s research, development and demonstration effort toward full-scale operation of a near-zero emissions coal-based power plant.

Most of us in this room recognize that the January announcement to restructure FutureGen takes the program in a dramatically different direction.  I think it is unfortunate that the Department chose to make this sudden shift in the FutureGen program with no congressional consultation.

Beyond that, I am very concerned about the effectiveness of the new program.  Over the last five years, we appropriated nearly $175 million dollars for the original FutureGen program.  In a pay-as-you-go world, I would like to know that we didn’t throw that money away.

The direction for FutureGen must be one that accomplishes the goal of full-scale demonstration of carbon capture and sequestration technologies in a cost-effect and rapid timeframe.

I am very concerned that this major revision of FutureGen will delay our development of these technologies which in my opinion is terribly unwise.

Climate change is one of the most urgent environmental challenges we face today.  The answers to this global problem are not easy and the technology solutions will not come cheaply.

I believe that investment in advanced technologies such as renewables, increased energy efficiency, and carbon sequestration are integral pieces in reducing our greenhouse gas emissions.

We cannot afford to take any steps backwards in our federal initiatives to address the challenge of climate change.

I look forward to the testimony of our witnesses today so that I can better understand the rationale behind this major revision of the FutureGen program and if this new approach to FutureGen puts us on the best path to accelerate the development of carbon capture and sequestration technologies.

Opening Statement By Chairman Nick Lampson (Energy and Environment)

Good morning and welcome to today’s hearing on the Department of Energy’s decision to undertake a major restructuring of its key climate change technology initiative – the FutureGen program.

Climate change is a tremendous environmental challenge.  If we are to meet this challenge, new low- to no-emission technologies are absolutely necessary.  Our ability to rely upon coal to produce electricity depends upon the successful development and deployment of carbon capture and sequestration systems.  For the last five years, the Administration has told us that FutureGen was the key project that would move coal-fired electricity production forward.  But now they are telling us we must go in a new direction.

I have several concerns about the Department’s revision of the FutureGen program.

High profile, costly, multi-year technology development efforts should not be started and stopped without careful analysis of costs and technological feasibility.  I am not convinced those analyses have been done.  Programs should also not undergo this level of revision without consultation between Congress and the Administration.

This process does not represent the type of partnership between the legislative and executive branches of this government or between the government and industry that is needed to accomplish a technological shift of this complexity.  We simply must do better.

I’m sure there were some Members who questioned the feasibility of the original project when it was first rolled out by the Administration with their FY 2004 budget proposal.  Congress supported this program convinced by the Administration’s support of it and because of the importance of demonstrating the ability to utilize coal in a manner that does not further jeopardize our climate system.

Five years and about $176 million dollars later, the Department of Energy abruptly announces it is abandoning this project and embarks on a new program under the old name.

I need to understand the analyses that support this decision.  The Department told us the original FutureGen was the best approach.  Now it is not.  Before we begin to take yet another approach, we need something more substantive than the current Request for Information.

I am aware of the Department’s concerns about the escalating cost estimate for this program.  Apparently, the Department and the industrial Alliance managing the project were working cooperatively to devise an acceptable funding approach for the FutureGen program as late as last December.

However, the costs are going up for all energy projects, and we all know that large projects suffer from this problem.  I am not convinced that the new program will cost less and achieve more as the Administration claims.  The same factors that were driving up the costs of the FutureGen program will apply to the new program as well.  And we all know that time is money – and at a minimum the decision to restructure this program will result in a delay in CCS technology development of several years.

I look forward to hearing more about the Department’s rationale for restructuring FutureGen.  I want to understand how this new program fits with the other ongoing clean coal programs at DOE.

And finally, I want some assurance that we have a comprehensive federal effort in partnership with industry on carbon capture and sequestration that can deliver the cost-effective technological breakthroughs that we need to generate electricity with coal without degrading the climate.

Witnesses

Panel 1

1 - Mr. C. H. “Bud” Albright
Under Secretary Department of Energy Department of Energy
Download the Witness Testimony

Panel 2

3 - Mr. Jeffrey N. Phillips
Program Manager, Advanced Coal Generation Electric Power Research Institute Electric Power Research Institute
Download the Witness Testimony

2 - Mr. Ben Yamagata
Executive Director Coal Utilization Research Council Coal Utilization Research Council
Download the Witness Testimony

1 - Mr. Paul W. Thompson
Senior Vice President, Energy Services E.ON U.S. LLC E.ON U.S. LLC
Download the Witness Testimony