Over the past few years, the global context regarding nuclear deterrence and
the national security has changed significandy. In the absence of nuclear testing, the
Department of Energy (DOE) and its defense laboratories, including the Los Alamos
National Laboratory (LANL), are responsible for implementing a stewardship and
management plan to maintain a high level of confidence in safety, reliability, and
performance of the U.S. nuclear stockpile. In this regard, LAISTL retains a unique



1202



stockpile stewardship role. In fact, it is the only location in the Unites States where
facilities exist in a central way to handle and process plutonium. Furthermore,
enhanced radiographic facilities such as the laboratory's DAHRT facility help provide
DOE with precise data about the safety, reliability, and performance of weapons in
the stockpile.

I respectfully request a $297 million increase in the FY97 stockpile
stewardship and management program beyond the budget request for Los
Alamos and other defense laboratories.

Neutron scattering is an important tool in examining the structure of materials
and is complementary to x-ray and other technologies. The Los Alamos Neutron
Science Center (LANSCE) is the focal activity of neutron research at LANL where
scientists have been concentrating on techniques in scientific areas to which neutron
scattering has not been applied in the past. The LANSCE facility has a number of
unique capabilities, among them being neutron radiography which, with microscopic
precision, provides an important and non-destructive evaluation technique for nuclear
capabilities. This is especially relevant to Los Alamos support for the science-based
stockpile stewardship program.

I respectfully request that the Subcommittee sustain the budget request for
the LANSCE operations, as well as provide an additional $54 million beyond the
budget submission for the national tritium supply program which includes
research on accelerator production of tritium.

Los Alamos has always been on the cutting edge in high performance
computing modeling and simulation and has diffused these capabilities into the
national and scientific technical and industrial communities. More specifically, the
laboratory is emphasizing modeling and scientific computation inherent to the
laboratory's mission to support weapons certification and analysis.

I respectfully request the Subcommittee provide an increase of $40 million
beyond the budget request for the ASCI program while ensiuing that the
additional funding for this program should not be taken from the core research
and development.

In order to reduce the threat of the proliferation of nuclear materials, Los
Alamos is continuing to develop a variety of international programs to control,
manage, and dispose of nuclear weapons and materials in a secure manner. The
laboratory has participated in joint efforts at Russian nuclear facilities to extend
material protection, control, and accountability programs. They are also developing
technologies like satellite sensors needed to detect weapons proliferation and to
monitor various arms control agreements.

I respectfully request an increase of $120 million beyond the submission
for the verUlcation and control technology account for nonproliferation research
as weU as intelligence programs.

Concern about the proliferation of nuclear, biological, and chemical (NBC)



1203



weapons and terrorism is decades old. However, recent developments, from reports
of nuclear smuggling out of the former Soviet Union to the terrorist use of nerve gas
in a Tokyo subway, have heightened the NBC threat to national security. With
competencies in NBC research, Los Alamos can help reduce the threat of terrorist
activities and the proliferation of those weapons.

I respectfully request $100 million to support a planned memorandum of
understanding between the DOE and other agencies to help address the NBC
threat. In particular, this funding should be provided for in the verification and
control teclmology account.

The bioscience and biotechnology programs at Los Alamos are playing an
increasingly important role in diverse applications including medicine, environmental
clean-up, and non and counter proliferation. Research in the Human Genome
Project, which was designed to analyze and map certain genes for disease prevention
and health effects has resulted in numerous scientific advances.

I respectfully request the Subcommittee to sustain funding for the DOE
Office of Health and Environmental Research including money for the Hiunan
Genome Project and structural biology research.

Finally, the Los Alamos National Laboratory is attempting to achieve a
recognized environmental science program based on the laboratory's contribution of
science to major need in the environment. Therefore it will be better positioned as a
major participant in the formation of emerging national environmental science
programs.

I respectfully request a $60 million increase beyond the budget request for
the environmental technology initiative which emphasizes the appUcation of
scientific research and development for a more cost effective clean-up of DOE
sites. I also request an additional $13 million for the Environmental
Management account for environmental stewardship including pollution
prevention. Finally, I request $11 million for Los Alamos to ensure near zero
waste operations to avoid futiu-e waste liabilities at the laboratory.

Sandia National Laboratory

I respectfully request the Subcommittee to consider appropriate funding
for the following requests to ensiu-e that Sandia can successfully continue its
important mission in research and development and to ensure national security.

Without nuclear testing and with significandy reduced weapon research and
development and production budgets, an effective science based stockpile stewardship
approach is essential. The eroding stewardship budget erodes Sandia's ability to meet
the Department of Defense requirements to certify nuclear weapon safety and
reliability.

The Sandia Laboratory provides a key researching role for solar and renewable
energy supply. Congressional support is needed to assure future environmentally safe



1204



supplies for the United States while also putting U.S. industries in a position to sell
those capabilities and equipment to the increasing world market.

Continued support and funding for the construction of the Sandia Combustion
Research Facility (CRF) is critical to increasing the efficiency and ability of
combustion processes. In addition, the CRF program has successfully involved
industry, universities, and the research community.



1205



Thursday, February 29, 1996.

LAKE COUNTY GEYSERS EFFLUENT PIPELINE AND
INJECTION PROJECT

WITNESS

HELEN WHITNEY, CHAIR, LAKE COUNTY, CALIFORNIA, BOARD OF
SUPERVISORS

Mr. Myers. I now recognize Mr. Riggs of California to make the
next introduction.

Mr. RiGGS. Thank you, Mr. Chairman. I am just delighted to wel-
come to the subcommittee for her testimony a very good friend and
colleague, Supervisor Helen Whitney from Lake County, and Mark
Bellinger who is the — I want to make sure I say Mark's correct
title. He is the Lake County Energy and Resource Manager. Did I
get it right?

I really regard Helen as not only a personal friend but a trusted
adviser. She has been one of the people who have spearheaded our
geyser's pipeline project using treated wastewater or effluent, as
we heard earlier today, to inject the geysers and extend the energy
life of the geyser's field. It is a win/win for all concerned, and it
is a project we want to see through to completion.

Supervisor Whitney.

Ms. Whitney. Thank you very much, Mr. Myers and members.
I have a prepared statement I would like to read to you, and I be-
lieve that you have a very similar copy given out to you.

As Mr. Riggs says, I am Helen Whitney. I am Chair of the Lake
County Board of Supervisors, and I am also Supervisor for District
1. About 85 percent of the pipeline project is in my district.

I appreciate this opportunity to appear before you today on be-
half of Lake County and the Southeast Geysers effluent pipeline
project. I would like to use this opportunity to update you on the
project's status and to explain our need for a final Department of
Energy cost share in fiscal year 1997 to bring project construction
to completion.

First, we want to acknowledge the support of your subcommittee
over the past three fiscal years when Department of Energy funds
enabled us to create one of the Nation's strongest public/private
partnerships for economic and environmental action and to create
the world's first system for converting municipal wastewater into
geothermal electricity. The funds provided by the Department of
Energy and other stakeholders have allowed us to complete all en-
gineering, environmental and permitting procedures, culminating
in the construction ground breaking that was held last October.

As was remarked upon by the Department of Energy's represent-
ative at the ground breaking, our project now represents a major
step in turning the rhetoric of sustainability into real infrastruc-
ture that delivers tangible long-term economic and environmental
benefits. We are not only cleaning up our wastewater, we are using
it to produce the energy needed to drive a growing economy, and
we are doing it primarily with industry and local funds supple-
mented by Federal and State support. We are particularly proud of
the 25-year operating agreement recently signed by project partici-



1206



pants, which underscores the long-term commitment we have to
this partnership.

As we enter our construction face, we are before you today to re-
spectfully request that the subcommittee include in the Depart-
ment of Energy's geothermal account $2 million to complete the ef-
fluent pipeline project. This $2 million, which equates to only a 5
percent increase in the project's $43 million total cost, is needed for
construction complexities found over the 29 miles of pipeline route.
As with all long pipelines, our preliminary studies were unable to
expose all of the conditions we now face. With our recent comple-
tion of final engineering, we can now precisely know where the
pipeline must go to avoid geologic hazards and what type of pump
motors would be most efficient and some other similar details. We
finished all of the final geo-technical studies that were not avail-
able at the preliminary stage.

This additional 5 percent DOE cost share will still result in over
50 percent of the project budget coming from industry, and Lake
County citizens will still be shouldering a sewer rate increase of
100 percent for their share of the costs. In other words, we know
we are all in this together, and we are not abandoning the partner-
ship principles that are at the foundation of this project.

Most importantly, we also share in the project's benefits. Our
communities will prosper with improved infrastructure. Our geo-
thermal industries will retain its productivity. And according to the
Bureau of Land Management, the Federal Government will more
than recoup its investment because the project will replenish a de-
clining geothermal reservoir and therefore substantially increasing
geothermal royalties to the Federal Treasury.

What this means is that the Treasury actually nets more than
$3 for each Federal dollar invested in this project. So, in fact, the
Federal Government is a working partner with us, realizing a re-
turn on its investment and recouping its investment in less than
10 years.

We hope that you agree this is the kind of investment the Nation
should be making for the future, where government, industry and
citizens take joint responsibility for and work in partnership for in-
novatively achieving both economic progress and environmental
protection.

While I am here, on behalf of Lake County, and since I have
about 1 minute left, I would also like to request the subcommittee's
support for two other projects that fall within the jurisdiction of the
Corps of Engineers. First, I would like to thank the subcommittee
and Congressman Riggs, of course, in particular, for providing
$300,000 in fiscal year 1996 for the Northern California Stream's
Middle Creek Flood Control Project in Lake County. The Corps of
Engineers had estimated about $600,000 for the reconnaissance
study phase; and, therefore, we would respectfully request that the
balance of that, the second $300,000, be put in the 1997 Energy
and Water Bill.

Then my second request is that we, again very respectfully, re-
quest your consideration of $250,000 to update a feasibility study
for Dry Creek Dam. Due to the settlement conditions of a full
stream adjudication, which we are taking to the judge tomorrow,
the project will probably be our last chance to develop a dependable



1207



water supply and some flood protection for the middle town area
of Lake County. So I would like for your consideration on that, too.

Thank you very much.

Mr. Myers. Well, thank you very much, Ms. Whitney. Sorry for
the slight interruption there, but we have a busy schedule around
here.

Ms. Whitney. I have seen that with everyone I think today.
Thank you very much for your time.

[The statement of Ms. Whitney follows:]



1208




COUNTY OF LAKE

BOARD OF SUPERVISORS

Courthouse

Lakeport, California 95453
Telephone 707/263-2368
Fax 707/263-2207



February 29, 1996



Honorable John T. Myers, Chairman
House Appropriations Subcommittee on

Energy & Water Development
2362 Rayburn House Office BIdg.
Washington, D.C. 20515

Dear Chairman Myers:

We appreciate this opportunity to appear before you today on behalf of Lake County, California and the
Southeast Geysers effluent pipeline project. We would like to use this opportunity to update you on the
project's status, and to explain our need for a final Department of Energy cost share in FY 97 to bring
project construction to completion.

First, we want to acknowledge the support of your Subcommittee over the past three fiscal years when
Department of Energy funds enabled us to create one of the nation's strongest public/private partnerships
for economic and environmental action; and to create the world's first system for converting municipal
wastewater into geothermal electricity. The funds provided by the Department of Energy and other
stakeholders have allowed us to complete all engineering, environmental, and permitting procedures,
culminating in the construction ground breaking that was held last October 6.

As was remarked upon by the Department of Energy's representative at the ground breaking, our project
now represents a major step in turning the rhetoric of sustainability into real infrastructure that delivers
tangible long-term economic and environmental benefits. We are not only cleaning up our wastewater,
we are using it to produce the energy needed to drive a growing economy. And we are doing it primarily
with industry and local funds supplemented by federal and state support. We are particularly proud of
the 25-year operating agreement recently signed by project participants, which underscores the long-term
commitment we have to this partnership.

As we enter our construction phase, we are before you today to respectfully request that the
Subcommittee include in the Department of Energy's geothermal account $2 million to help complete the
effluent pipeline project. This $2 million, which equates to a 5 percent increase in the project's $43
million total cost, Is needed for construction complexities found over the 29 miles of pipeline route. As
with all long pipelines, our preliminary studies were unable to expose all of the conditions we now face.
With our recent completion of final engineering, we now know precisely where the pipeline must go to
avoid geologic hazards, what type of pump motors will be most efficient, and other similar details affecting
final costs.



1209



Honorable John T. Myers, Chairman
February 29, 1996
Page 2



This additional 5 percent DOE cost share will still result in over half of the project budget coming from
industry, and Lake County citizens will still be shouldering a sewer rate increase of 1 00 percent for their
share of the costs. In other words, we know we are all in this together, and we are not abandoning the
partnership principles that are at the foundation of this project.

Most importantly, we also share in the project's benefits. Our communities will prosper with improved
infrastructure. Our industries will retain their productivity. And according to the Bureau of Land
Management, the Federal government will more than recoup its investment because the project will
replenish a declining geothermal reservoir and thereby substantially increase geothermal royalties to the
Federal Treasury. In fact, the Treasury will net several dollars for each federal dollar invested in the
project.

We hope that you agree this is the kind of investment the nation should be making for the future, where
government, industry, and citizens take joint responsibility for innovatively achieving both economic
progress and environmental protection. Thank you again for your consideration.

Sincerely,



/JjMm.



Helen Whitney
District 1 Supervisor



1210



6f



^S.E. GEYSERS EFFLUEN'
PIPELINE PROJECT



1^



A Public/Private Partnership for:
Environment: superior wastewater disposal.
Energy: sustaining clean power generation.
Economy: retention and creation of jobs.



Participants:

Lake County Sanitation District
Calpine Corporation
Northern Calif. Power Agency
Unocal Corporation
Pacific Gas & Electric Co.
U.S. Department of Energy



Project Description

A 29-mile, 20-inch diameter buried pipeline will carry 7,8 million gallons per day of treated wastewater effluent and lake
make-up water from Lake County Sanitation District treatment plants at Clearlake and Middletown to three Geysers
steam suppliers; Unocal Corporation, Calpine Corporation and the Northern California Power Agency (NCPA). These
steam suppliers will construct and operate secondary pipelines to distribute the effluent to geothermal injection wells.
^ â– 'wer plants operated by NCPA and Pacific Gas & Electric Company will receive steam supplies created by the effluent
^ection. Depending upon steam recovery rates from the injected effluent, the project will result in a gain of
approximately 70 MW in power output. This will equate to as much as 625,000 MWh of clean, low-cost electricity
generation annually for over one million Northern California consumers. In addition to these energy benefits, the project
will also provide a long-term environmentally-superior method of wastewater disposal for Cieariake, Lower Lake, and
Middletown; and help create and retain jobs in these communities that depend on effective wastewater systems.




1211



CONSTRUCTION COST-SHARING PLAN




Costs & Financing

onstruction of the effluent pipeline and associated
Middletown and S.E. Regional Wastewater Treatment
Plant improvements are estimated at approximately
$45 million. The public/private financing plan uses
County wastewater funds, federal and state financial
assistance, and Geysers operators' funding for
construction. The Geysers operators will also spend an
additional $7 million on secondary distribution and
Injection facilities within the Geysers steamfield.

Schedule

Construction commenced on October 6, 1995, with the
project scheduled to become operational in 1997.

Ownership & Operation

The main effluent pipeline will be owned and operated
by the Lake County Sanitation District up to a point of
delivery near Hwy 175. Unocal, Calpine and NCPA will
own and operate the final stretch of pipeline, and the lift
pump stations up to The Geysers. NCPA will use the
effluent-based steam in its own power plants, and
PG&E will purchase effluent-based steam from Unocal
and Calpine for its power plants.



EFFLUENT PIPELINE ROUTE



Southeast
Regional
Treatment â– 




ADDITIONAL INFORMATION
Mark Delllnger, Lake County Sanitation District, Lakeport, California,



1212



Thursday, February 29, 1996.
GRIDLEY RICE STRAW BIOFUELS PROJECT

WITNESS
TOM SANFORD, DEPUTY MAYOR, CITY OF GRIDLEY, CALIFORNIA

Mr. Myers. The Chair will recognize Mr. Fazio of California for
the next witness.

Mr. Fazio. First of all, I want to say hello to my friends from
Lake County and indicate continuing support for Mr. Riggs' efforts
in helping here, because it is a regional issue in many ways.

Ms. Whitney. It is, and I would like to thank you for your under-
standing and your support.

Mr. Fazio. You are very kind. We will work together, and we will
all benefit.

I have constituents here from Gridley, California, as well, Mr.
Chairman; and I thought that perhaps since they are more patient
than anyone, having missed their chance to get up earlier, that this
might be a good time for them to come.

I would like to particularly indicate that Tom Sanford, as the
Deputy Mayor of Gridley, is a person who I have come to greatly
admire because of the way he has championed the cause that he
is going to be explaining to the committee. Tom, thank you person-
ally.

Mr. Sanford. Thank you, Mr. Fazio, Chairman Myers, members
of the committee. My name is Tom Sanford, as Congressman Fazio
as stated, and I am the Mayor Pro Tem of the City of Gridley in
the Sacramento Valley of California.

Thank you for the opportunity to again testify and appear before
you. I appreciate that opportunity. We want to report on our
progress over the last year and the planning and developing of a
biomass facility utilizing waste rice straw.

Let me say from the outset that we greatly appreciate the sub-
committee's past support, particularly the support of our own Con-
gressman, Congressman Vic Fazio, and certainly the assistance of
Congressman Frank Riggs, who is our neighbor to the west. Both
Members have been very supportive of our efforts to establish a
cost-effective, subsidy-independent, renewable source of liquid fuel
for transportation.

The City of Gridley, which operates its own electrical utility, is
pursuing this project for a number of reasons. The City is situated
in a rice-growing area in the Sacramento Valley. The State of Cali-
fornia is, on a statutory basis, eliminating the open field burning
of rice straw; and this threatens the industry's viability and, hence,
our local economy. The facility we are planning will be large
enough to utilize 20 percent of California's rice straw and will help
the industry to eliminate environmental concerns relative to the
open field burning of that straw.

Second, the City is very concerned about the long-term availabil-
ity of its existing stores of electrical power from the Western Area
Power Administration. The Gridley project will generate significant
amounts of electricity as well. It is the confluence of these two is-
sues, the mandatory elimination of the burning of rice straw in
open fields and the uncertainty associated with our WAPA power



1213



that has lead the City of Gridley to aggressively pursue the con-
struction of this facility.

Over the last year, the City of Gridley has put together a consor-
tium that we believe can match the capabilities of any similar con-
cern in the United States. We have proven engineering capabilities
through Amoco and Stone and Webster and the backing of two
major utilities and another California power agency in the Sac-
ramento municipality district, the University of California at Davis
as well as many people in the rice industry. In addition, Mr. Chair-
man, our consortium has worked in partnership with the Depart-
ment of Energy's National Renewable Energy Laboratory.

Since I appeared before you last year, research performed at the
pilot plant that you funded at NREL in Golden, Colorado, has veri-
fied the dramatic efficiency of this improved technology which we
hope we will be the first in the world to commercialize.

Mr. Chairman, in order to continue the progress we have made
towards construction of a biomass ethanol plant, the City of
Gridley and its non-Federal cost-share partners requested $3 mil-
lion in fiscal year 1997. The request represents what is intended
to be the second of three equal commitments of Federal resources
that will be needed in order for the City and its partners to con-
struct the optimum-sized biomass ethanol plant.

We seek these funds in addition to the amounts requested by the
administration for the transportation sector of the biofuels budget.