Readiness Subcommittee Chairman Solomon Ortiz Opening Statement Hearing on DoD Energy Posture
March 13, 2008
"This hearing will come to order. I thank our distinguished witnesses for appearing before this subcommittee today to discuss energy use and management at military installations and for military operations.
"Energy issues cut across all Department of Defense organizations and functions. Managing the demand for energy is vital not only at facilities but also for fleet vehicles, surface ships and submarines, aircraft, and tactical vehicles.
"The Department is developing innovative energy sources for soldier power and for forward-deployed locations, while also striving to find sources of renewable energy and meet goals for energy efficiency on installations at home.
"Management is vital because the Department of Defense spends billions of dollars every year on energy. The Department's request for 2009 includes $3 billion more for energy than last fiscal year.
"This week, the price of oil topped $109 per barrel and is four times more expensive than it was in 2001.
"Increased fuel prices strain the military services' readiness accounts. For example, in fiscal year 2009, roughly half of the increase in the Navy's Operations and Maintenance budget request is due to projected increases in fuel costs.
"For the past several years, the Defense Energy Supply Center raised bulk fuel rates mid-year, charging the services more than they budgeted for fuel.
"In many ways, the Department has already assumed a leadership role in addressing energy demand challenges. For example, even before the National Defense Authorization Act for Fiscal Year 2007 required it, the Department of Defense already had established an internal goal of using 25 percent renewable electricity by 2025.
"The services are also implementing innovative energy projects.
"For example, at Nellis Air Force Base, the Air Force has partnered with private industry to build the largest solar panel array in the Americas. This was accomplished through an enhanced use lease which allows the installation to lease non-excess land to private entities for 50 years or more.
"Other plans for the use of enhanced use leases raise questions, however.
"The Air Force is proposing enhanced use lease agreements for a coal-to-liquid production facility at Malmstrom Air Force Base and for nuclear power plants on other Air Force installations.
"I am concerned that use of such long-term commitments may impede a base's primary mission and could result in another form of encroachment. I will be very interested to hear whether the Department thinks these proposals serve the overall good for installations.
"I also hope to address the criteria we use to evaluate choices that effect energy use. For example, what lessons are being learned from the pilot study using the fully burdened cost of fuel for mobility systems?
"Of course, we also are anxious to learn about recommendations by the Defense Science Board and Government Accountability Office, as well as specific energy solutions and challenges from the Department's perspective.
"I look forward to thoughtful testimony from the distinguished witnesses we have invited here today on these and other issues of interest to my colleagues on the subcommittee.
"The Chair now recognizes the distinguished gentleman from Virginia, Mr. Forbes, for any remarks he would like to make."
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