Chairman Latta Delivers Opening Statement at Energy Hearing on DOE's FY27 Budget

Welcome to today's hearing on the Department of Energy's fiscal year 2027 budget and welcome back to you Mr. Secretary of the Energy Subcommittee of the Energy and Commerce Committee. Almost 14 months ago you inherited a department that was not serving the strategic needs of the nation. The previous administration lacked a realistic national energy security strategy. It wasted billions of dollars reducing reliable energy and making our energy systems ill-prepared to meet this historic moment of the next generation economy. After more than a year at the helm of our energy department things look very different. Under your leadership our nation's energy strategy prioritizes core responsibilities of energy and national security, reliable power, affordability, and economic growth. You charted a path to ensure U.S. leadership in future technologies that are reshaping the global order. Finite taxpayer resources have been shifted to focus on abundant, reliable energy expansion. You've harnessed DOE's computing power to AI to use for societal benefit. You've accelerated work on nuclear technologies, increased collaboration to secure the grid during emergencies, and increased resources on our nuclear deterrent. You've also refocused the department's loan program on energy expansion and reliability. Most of these actions are reflected in DOE's proposed budget. These efforts couldn't come at a more important time. International conflicts and decisive military actions by the Trump administration to protect our nation have put increased pressure on ensuring a secure and reliable energy system. While DOE has diligent work to aid to focus on essential energy and security priorities, more work remains. Affordability continues to be a key concern facing American families. I'd like to get your perspective today on the impacts on oil prices from the conflict with Iran and what the prospects for more stable supplies would mean. And we should also impact the forces behind higher energy costs. Average utility bills rose by 11% in 2025 after increasing by 29% in four years prior, and substantially higher across our nation's bluest states. In fact, recent reports from the Lawrence Berkeley National Lab confirmed that far-left policies are driving price increases that are burdening households and businesses. We should examine how misguided policies leave our communities vulnerable when they need electricity the most, and what DOE is doing about that. Recent weather events during winter storm Fern exposed the risk of over-reliance on weather-dependent energy. DOE's decisive 202C orders and effective emergency planning were critical to protect against blackouts, ultimately saving lives and preventing billions of dollars in economic damage. While mismanaged public policies disrupt our power sector, historic projections of demand growth from data centers and reshoring manufacturing continue to decline. Data centers alone could consume up to 70% of the total electricity, which is also 60% higher than estimates projected in 2024. Importantly, DOE has taken several steps to ensure data centers can connect to the grid in a way that drives down prices and does not burden ratepayers with additional costs. The subcommittee has spent considerable time examining this load growth and what type of energy system is needed to fuel data center demand. Without fail, experts across the field have testified that the answer is dispatchable, reliable, and affordable supplies of baseload power. In recognition of these needs, the Department has prioritized dispatchable resources that can power next-generation technologies and can keep the lights on when we most need it. Alongside these efforts, the Department has focused on ushering in a nuclear renaissance. This ranges from your work to accelerate the development of American nuclear fuel infrastructure and of reprocessing used fuel to your work to demonstrate more new reactor designs. We should examine how your work will dovetail with the Nuclear Regulatory Commission's commercial licensing to provide a robust safety process for nuclear expansion. While the previous administration sought to end the use of fossil fuels, your Department has unleashed American energy like liquefied natural gas and reversed unnecessary regulations that attack fossil fuel use. I look forward to the discussion today on how your energy and technology priorities will benefit the American people.