forward, i have been focused like the laser on trying to help the country get to a better safety posture when it comes to the movement of crude by rail. su the point we have taken 24 short-term measures that were thought about as bridges long-term answer which is ultimately a rule on this. just to cut to the chase, you have to have a comprehensive approach to is this issue.

there is all lost in the news about hank cars and tank car standards. the cape cod is that mitigation device. is not a device designed to prevent an accident an accident for some period of time. we have to have a prevention strategy, we have to have a mitigation strategy, we have to have an emergency response strategy. one thing we pushed on the department is a comprehensive approach to take into account all those areas and i would say that i think there is the building consensus both outside government but within government, the right way to go. we are still working through the later stages of rulemaking, this

is an area of great focus for me. >> swinging kickback to the question of cybersecurity, there's a mixed ownership depending on the mode. the president's executive order signed out last month brought forward the idea of stronger information sharing and advisory organizations. i wonder what the department might be able to do to build a stronger information sharing organization among the various modes of transportation for which their responsibility because i think the industry is crying out for better coordination informational sharing, information sharing about best practices and best results. >> we are very open to trying to

play a stronger role in assist these conversations across different modes of transportation. to get the most within modes to have the discretion. and aviation that are distinct. to your point. to play an active role on the cost cutting side of the conversation as well. >> i would like to thank you for very interesting informative session. [applause]

[inaudible conversations] [inaudible conversations] >> fcc chair tom wheeler was questioned at a house oversight committee hearing on the fcc's recent vote approving new open internet rules. the net neutrality decision is designed to prohibit internet service providers from blocking more discriminating against legal content moving through their networks. we will show you that hearing at 10:00 eastern on the companion network c-span. >> now isis rivera glee head and

this army is very shaky. we should not be surprised by that. you can't undo decades of soviet iran and said on your rest of with eight years especially when you taught them when they have u.s. and visors and partners. we have 10,000 troops in a training advisory role, and down almost zero the year after that. i would warn we will see a similar result to what we saw in iraq when the isis attack. the afghan army will be very shaky. >> this sunday and q&a, lieutenant general daniel bolger on u.s. strategies in iraq and afghanistan and what we should have done differently sunday night at 8:00 eastern and pacific on c-span's q&a. >> next interior secretary sally jewell talks about u.s. energy and environmental policy. from the center for strategic

and international studies this is 55 minutes. [applause] >> thank you. thank you very much wind where are you up there? bennett and i worked together on the second century commission of the national parks and it was a wonderful experience. great to see you, you are more green than i am. so thanks for that introduction and thanks to the center for strategic and international studies for inviting me to be with you today. i appreciate everything this organization does to advance a bipartisan dialogue around most pressing issues of our time and thanks to those in the audience for being here today. there is no better way to celebrate than talking about energy policy so welcome to the

best party this afternoon. rehab had a breakthrough year for the u.s. economy. as president obama reminded us companies are creating jobs faster than at any time since 1999. wages are climbing deficits are shrinking, graduation rates are at record levels. the economy has emerge from recession with a stronger, more stable foundation. it is no coincidence that our economic recovery has been accompanied by the biggest energy contribution in our lifetimes. the energy revolution we experience in these last six years helped spur the recovery. it has been accelerated by the policies our country put in place so since 2008 american oil location has surged from 5 million to 9 million barrels a day and our dependence on foreign oil has fallen to its lowest level in 30 years.

the amount of solar energy has increased 10fold. wind energy has tripled since 2008. that has been helped by more than $340 billion of private-sector investment and a tax policy that helps move these investments off the sidelines. families are driving farther and ever on a tank of gas. with lower gas prices the average household will have an extra $750 in their pockets in 2015. these shifts in the u.s. energy markets are not marginal or tempura read. they are tectonics shift. from a business perspective these changes will present both challenges, risks and opportunities for industry. i can promise you that every ceo of an energy business is reassessing the plans they had on the books a year ago.

they are asking how to falling oil and gas prices affect them. do we have the right projects in the pipeline or do we need to diversify. can we capitalize on consumer demand for smarter homes and cleaner cars. the tectonics shifts are forcing governments at every level to these questions of the same magnitude. can we adapt in this fast-changing environment, not the fastest place is government coming from the private sector. how do we modernized our energy programs to anticipate the new energy future? are we doing what is needed for the u.s. to lead the world in energy? this is a speech about energy but you can't talk about energy without talking about climate change and that is good. one of the reasons i left the private sector for this job was not just to talk about climate change to do what you could do within the bounds of the country but to do something about it on

a much bigger scale. and i am proud to work for a president who is taking historic meaningful steps to cut dangerous carbon pollution. as of person entrusted with america's biggest land management portfolio, i also ask myself questions like what are we doing to achieve a low carb and future? are we striking the right balance between conservation and development? what measures do we need in place for our land, water and climate today to protect the families of tomorrow. as ceo of our e i, not a public company and any members about their cut, i need to pitch tension to courier earnings but also make long-term decisions to make sure our business would be relevant 10, 20, 30 years down the line. i was just chatting with frank

and charlie about how our colleagues and i did a story about what is impacting us over the long term. just a couple of years and they are almost completely aligned. you do as a business have to think long term. that is the same balance they have to have as secretary of the interior. managing our resources help drive the nation's economy, and the america we want to hand to our children. we all share a desire for cleaner more secure energy future. many thoughtful people will disagree over the right path forward, right? the path we are forging at the department of the interior, put simply our task by the end of this administration is to put in place common-sense reforms that promote good government and helped define the rules of the road for america's energy future

on public lands. these should help businesses produce energy more safely and more certainty. encourage technological innovation, ensure american taxpayers are getting maximum benefit from their resources. and to better protect and sustain our planet for future generations. after all, as my colleague secretary john kerry said this last week there is no planet b. that was clever too. the above administration has launched the most ambitious reform agenda in the department of the interior's history. we saw how it drill everywhere plan doesn't work very well. newly half of the lease sales are challenged or later overturned in court. we put in place leasing reforms different the engagement with the republic about where it does or doesn't make sense to

develop. through smarter planning we are seeing reduced conflict and litigation and more certainty for industry. in 2009 the renewable energy industry was knocking on our door to permit wind and solar projects but there was no clear path forward. my predecessor kim salazar put up a strike team to get the most promising projects across the finish line into establishing an enduring renewable energy program that the department and he did a great job. that legacy is the gift that keeps on giving. in the span of six years we have proved 52 commercial scale projects on public lands across the west. to get there that is 14,000 megawatts of renewable energy that when bills would produce enough electricity to power over 4 million american homes. let me put that in perspective. how many of you have visited hoover dam? quite a number of you.

14,000 megawatts is roughly equivalent to the clean hydropower the bureau of reclamation produces through 53 facilities built over the course of 100 years including hoover dam, glen canyon dam and the other 50 dams we have in the bureau of reclamation portfolio. this is not minor. this is a huge. offshore, a sweeping reforms for safe and responsible development in the wake of the devastating deepwater horizon oil spill. interior strengthen drilling and emergency response status for oil and gas companies we raised the bar through well design, production systems, blowout prevention and will control equipment. we overhaul federal oversight by restructuring ourselves to provide independent regulatory agencies that have clear missions and better resources to carry out their work while keeping pace with rapidly evolving industry. our work is not done.

there are still areas where we need to change how we do business of the united states can better compete and lead the world when it comes to energy and climate change. a reform agenda over the next two years has three goals, safe and responsible energy development, good government and encouraging innovation. i start with state and responsible energy development. pretty simple. we don't have the right measures in place to protect the communities we live in the air we breathe and the water we drink we all lose. i quote the critical path foster sustained an expanded resource development in north america includes regulation and commitment to the industry and regulators to continuous improvement in practices eliminate or minimize environmental risk. sounds like the interior department but it wasn't. the national petroleum council, largely made up of industry.

many in industry get that effective regulations and independent oversight of energy development not only help minimize wrist but are absolutely critical to building the public confidence necessary to sustain our energy revolution. many of the regulations on the books haven't kept pace with the advances in technology. they are the same ones that were in place when i was working on drilling and fracking operations in oklahoma more than 30 years ago, 30-year-old regulations. in the coming days we will release a final rule related to hydraulic fracturing or fracking on public lands. the rule will include measures to protect our nation's groundwater requiring operators to contract sound swells, to disclose the chemicals they use and safely recovered and handle fluids used in the process. some have labeled these baseline standards as overly burdensome to industry but most americans

would call from common sense. standards only apply to activity on public and traveled lands where as a matter of geology listening to my friend that the u.s. geological survey 25% of america's and conventional oil and gas, you can do the math. three quarters of the resources are found on state and private land so the responsibility for developing this energy safely must now be taken up in state capitals and engineering labs and board rooms all across the country. we owe it to our kids to get this right. if we do, we could continue to grow our economy just as we work to protect our water, our air and communities. interior will continue to do its part. in the coming month we will propose standards to cut methane emissions and wasted gas, the results of vending and flaring during oil and gas operations or a leaky pipes like they had in this building. apparently it spelled like natural gas in here a few hours

ago. methane is the third largest source of greenhouse gas emissions. attracts more than 20 times as much heat as carbon dioxide over the course of a century. this powerful greenhouse gas is routinely released during energy development. in fact, above northern new mexico where there are 40,000 gas wells satellite images show a methane plume the size of delaware. updating decades-old standards to encourage the kind of infrastructure and technology companies i have met with in the permian basin have demonstrated can reduce harmful emissions in to capture the natural gas of a source of energy and revenue for the american people. when i was last at the balkans, and there was a device they were about to use to recovers some of the natural gas right after the well had been completed, they mounted it it hadn't worked, it is not only working but they ordered a couple more.

a great example of industry working to innovate. further addressing energy development, moving forward with a proposal to modernize the way coal mining operations protect community water sources and make sure companies restore screens and forced to healthy condition. in the gulf of mexico exploration and development tax committees booming driven by new discoveries in deep waters and the expansion of existing fields. in the next two years, 13 fields are expected to start up. offshore production is expected to steadily increase reaching 1.6 million barrels per gay in 2016. as we make best areas available for offshore oil and gas, tomorrow i'm going to new orleans offering 41 million acres in the gulf of mexico, safety remains our top priority. we can't forget the lessons of the deepwater horizon tragedy. building on the sweeping reforms

that i mentioned earlier propose a rule in coming weeks that raises the bar on a blowout preventer and will control measures based on technological process -- progress advanced by the industry. operators will be required these best practices to protect against and effectively respond to any loss of well control. in the arctic, we just released a proposal to make sure that any oil and gas exploration offshore alaska is subject to strong standards and specifically tailored to the region's challenging and unforgiving conditions. we know the arctic is a sensitive environment but it has sustain natives and their culture for thousands of years and we can't afford to get it wrong. when it comes to these reforms i recognize there will be pushed back from various quarters. i also appreciate the importance of the oil and gas sector and i'm committed to its ongoing success but i strongly believe they are not only achievable

with modern technology and science but absolutely critical of holding public trust to responsibly develop our natural resources, we have got to update these regs. second when it comes to reforms we need to improve the way we do business as a federal government plain and simple. part of that means insuring the american taxpayer is getting a fair return for the you saw of natural resources on their public land. most americans would be surprised to know that coal companies can make a winning bid for $1 a ton to my taxpayer own coal. coal is going to continue to be an important part of the energy in the future but the government accountability office, our own inspector general and members of congress from both sides of the aisle agree the federal whole program needs reform. we need to ask ourselves are taxpayers and local communities getting a fair return from these resources?

how can we make the program more transparent and more competitive? how do we manage the program in a way that is consistent with our climate change objectives. these are hard questions but it is time for an honest and open conversation about modernizing the federal whole program and we welcome that. in the coming weeks -- [applause] in coming weekly will take public comment on a proposal to give the bureau of land management the flexibility to adjust royalty rates on the oil and gas resources that belong to all of us. this is important given the dramatic growth of oil production on public and tribal land. production is increased in each of the past six years and overall combined production from public and travel plans was up 81% in 2014 compared to 2008. not just about royalty rates. it needs smarter management too. in 2015 incredibly we are still

processing a majority of oil and gas permits by paper and we have got 150 inspectors responsible for inspecting 100,000 oil and gas wells spread across millions of acres of public and travel and. that is a lot of territory and it means we are not able to do our job effectively. to carry out our mission and the better part in this tree we need resources, repeated budget cuts have tested the ability to keep up with industry demand for new permits and effectively enforce safety and environmental standards. it is what a president's but it calls on congress to support a strong onshore inspection program partly funded through fees. this proposal takes a page from the energy industry where industry pays fees for permits and inspections which means we can keep pace with the workload. we don't have to divert funds from other programs to support

permitting leasing or inspection activity. coupled with transition to a new automated permit system which is under way that eliminates paper applications these budget resources will significantly strengthen the capacity to do its job well. it is a perfect example. congress needs to move beyond mindless austerity brought about by sequestration and i can tell you my first year in this job was 2013. i left the private sector for this? crazy budget, but this enables us to move beyond the sequestration and make a smart investment in the future. in infrastructure and innovation. that means investing in safe and responsible energy production but also our ability to protect our landscapes wildlife and habitats. when it comes to good government we are also working to provide predictability to industry by identifying on a landscape level where does it make sense for them to develop and where does it make sense for them not to

develop. to that end we are taking a targeted leasing approach in offshore frontier areas, competing comprehensible oil and gas leasing plans onshore in utah in order to open up access to resources in the right places but recognize some places we don't want to develop. we have done that in the natural petroleum reserves in alaska. we have made nearly 12 million acres available for oil and gas development while protecting sensitive habitat critical for species like the care of blue. valuable oil and gas resources that companies can explore and bring to market and facilitating. predictability, identifying places that too special drill places with rich cultural resources or key wildlife habitats or outdoor recreation opportunities. that all matters to our economy and our future. i am also talking about places

at the doorstep of utah at national parks north dakota's theodore roosevelt national park or the coastal plain of the arctic national wildlife refuge not only should we -- [applause] >> we should actively avoid damaging sensitive places like the ones i mentioned, we should permanently protect some areas for conservation value. future generations of americans deserve to enjoy those incredible places like we do. we are using comprehensive land skid level approach for renewable energy too because of energy development has its consequences. we have to be thoughtful about it so we have mapped out 20 zones across the west where solar potential is high and other conflicts are low. because of this early planning work companies will see faster permitting time. solar project in the pipeline in

nevada were reviewed and a third of the time nine months whereas previous project by project approvals often took two years to complete. off shore identifying energy areas that will allow our nation to capture huge potential of wind along the atlantic. is in the along the atlantic. i have been there. it didn't use to. we can do that without compromising fishing, recreation, national security, the environment when we are smart about planning up front. we have held four successful auctions where industry has competitively bid to develop offshore wind farms. we now have 800,000 acres offshore under commercial lease and we look forward to seeing seals in the water coming years. the third and last reform by will talk about today, making sure that our country's position to encourage innovation and be competitive in a global economy.

america is both blessed with diverse natural resources and more importantly the human capital to develop new and better ways to harness them. just as the united states is a leader in and conventional oil extraction and the world's top producer of natural gas there is no reason we shouldn't also be the top producer of solar power and wind power. why not? let's do it. the government has a role to play here. the department of energy has for decades been a key player in research and development, things like directional drilling and tools to assess oil and gas potential. technologies that help spur the nation's recent energy boom is. today the d o e is investigating if technology that make our reproduction cleaner more efficient, finding ways to make solar more cost-effective. the government is also supporting development of a strong and profitable oil and gas industry through many tax credits and incentives the lower the cost of doing business.

i worked with those incentives is what i was a banker and i was surprised to find they are still in place 35 years later. credits may have made sense at the time but i am not sure the makes sense for as mature as the industry has become and we need to look at that. today we should be investing in incentives for industries getting a foothold in the nation's sector like wind and solar energy. we need congress to make tax credits for renewable energy long-term and predictable. instead of allowing sunsets and sputter steps that create uncertainty for businesses and manufacturers. many enlightened states have spurred the growth of clean energy through renewable energy standards and incentive so when you talk about creating jobs and growing the economy this is the action congress can take that will move billions of dollars of capital investment into the clean energy economy. at nation's polishes should

accelerate entrepreneurialism, not want them. renewable energy tax credits, energy efficiency targets, carbon reduction targets, fought for regulations that incentivize clean technology are a few ways we can get there. i talked about a reform agenda from my perspective as secretary of the interior responsible for representing the interests of all of us, taxpayers on their public land but i am also a grandmother and my responsibility to my grandchildren's generation is at the top of my mind with every decision we make. try to determine to help make ntt and safer and more environmentally sound in the next two years. that is why i believe new energy developments should be matched with protection for land and water. that is why we must do more to cut greenhouse gas pollution that is warming our planet. i see the cost of changing

climate everywhere i go. recently i was in alaska. coastal erosion threatens to wipe out an entire native village and is one of several that is in danger. in the marshall islands in 2013 they had to sandbag the airport runway to keep the rising ocean from washing away and i got an e-mail last night from an assistant secretary for insular affairs who said just came tides in some areas of the marshall islands are making parts of inhabited areas uninhabitable. and one storm could wipe out 15,000 people who share 80 acres right now with an average elevation that is just a few feet. right here at home communities are facing more extreme wildfires. we saw some of them in the news biggest bigger storms devastating drought,

disappearing wildlife, rising economic damages. we are already adjusting our land management's strategies for the impacts of climate change. to address the causes of climate change. helping our nation cut carbon pollution should inform the decision. and the single most pressing energy and environmental challenge of our time. we are in a moment of remarkable opportunity and promise. we have risen from the recession, free to write our own future more than any other nation on earth. it is not to us to choose who we want to be over the next 15 years and for decades to come. i share the president's believe that the u.s. should lead the world on energy, climate and

conservation. we need to encourage innovation and provide clear rules of the road and make balance decisions. every day i think about this phrase. you don't inherit the earth from our ancestors, we borrow it from our children. we don't inherit the earth from our ancestors, we borrow it from our children. my job is to take the long view. the american public expects of us and it is what we know the next generation. thank you. [applause] >> thank you, sally jewell. an excellent presentation. i am the senior vice president,

the gas leak in the event, down the stairway out the front, across the street, for those in front, it takes you to an alley way. >> should have pulled that then. >> we could get the crowd warm. got my start at the federal government at the age of 4, i have an affinity for oil and gas up there. you both talked about the trade offs especially at interior where you are charged with resource development in a prudent way and environmental stewardship but when you expand that throughout the government to national security foreign policy interests, labor and economic interests, how do you reconcile, what are the trade offs and balances, the

deliberations but go on to get to a policy decision. >> i would say the american public has an amazing capacity for the truth and when you explain the trade off, when you engage communities in the process he end up with some pretty smart thinking about where we need to go. as i was talking about we have done a fair amount of engaging with communities on landscape level planning. what are the areas to special surveillance for the industry, the areas that have the greatest potential how can we see a development in the right places and avoid the wrong places. the worst thing we can do for industry and the country is to make hasty decisions that are not well thought through that end up in court, slow everything down and there was a fair amount of that.

all the lawsuits of the department of interior a lot of those are formed when you don't have the right up front discussion about the right balance and what is at stake. we have made some important progress in that area of engage in the public, they trust the decisions that are being made or recognize there is balance and trade off at that is unable this to avoid some conflict. and understanding the real conflicts that do exist. >> you talk about in addition to the out reach that the technology moves extraordinary time we have seen for the last five years but with budgets, and i am sure you are keenly aware of restrictions on budget availability the notion that is there a better way to collaborate with industry and

the private sector on research and technology and regulatory proposals so regulations are lined up with the best thinking of the day and best practices. >> we are doing that. and we are looking at upgrading in the 80s. in the oil and gas industry directly, they haven't changed but the technology has gone by. it is is easy to change regulation, but adapt with new technology. the regulatory work we are doing to update these things. i use a quick example in the skid mounted unit to capture natural gas and natural gas liquids at the well and when the pressure is high after they complete a well and we are listening to technologies like that as we formulate the methane

capture strategies. for capturing methane what you need is a gathering system and takes time to put those in place that you have pressure issues that are complicated for industry to deal with early on in that production life. this is innovation by industry and we want to learn from that and figure out what is practical and when it might apply, how practical is it to apply across the network? and a tremendous amount of work has been done post deepwater horizon. that accident really hurts the oil and gas industry, it hurt every producer heard the gulf coast states and it horrified the nation but it inspired a lot of soul-searching on what went wrong. a lot of human error involved, not paying attention to the technologies that were there and that had to do to some extent with the safety culture. we can work with industry on enhancing that. we were not structured to

provide the kind of support and focus on safety from leasing the state from revenue. we have split that into three pars. that is not technology. that is human capital and focus and clarity of mission so all of those things are factoring into how we are updating regulations and when you look at the work we have done around blowout prevent is that is embracing industry and innovation the industry has done in the gulf of mexico to say we need better well containment and we have had so we have two organizations consortiums that pooled their resources to build new technologies to address will control. those are the kinds of ways of working closely with industry so that regulations mesh what they're able to do and so that they are able to progress over time. >> since we are coming up on the fifth year anniversary, this notion that you and expand best

practices internationally and be a leader whether it is the gulf of mexico or offshore cuba and the opportunity that represents for the united states. >> exactly right. my colleagues did these secretary mike connor is in new mexico working on water and also energy. and take into account the oil and gas, international boundaries, we are working closely with them sharing practices the gulf with large was protective in the future. a lot of lessons since the gulf oil spill, we learned a lot in the arctic with a lot more to learn because russia is developing, china is poking around, we need to know what we are doing. >> there is a study coming out

about the arctic but this notion and arctic notions developed the resources as well, if we are a bit of a ladder on that, what if that happens? does that put us at a disadvantage, more is more in terms of capability, shoreline back up systems and staging areas, it is the bigger geopolitical issue. >> the u.s. will chair the arctic council. later on this year the transition occurs. we need to make sure for arctic response capabilities search and rescue capabilities, save the environment, all of those things in place.

and shelf challenges, 2012 drilling season, we are talking about the gulf of mexico, very different. we also say many of the companies that may be interested in developing in the u.s. arctic are the same companies developing in other parts of the arctic. mobile is doing work with russia. we need to know what we are doing to the extent that there is development, strong potential, make sure we do it right and make sure resources are there. to contain the spill if there is a spill. it is not a problem in the gulf even though -- you have a lot of assets there. is not true in new york, it is a lot of time and a much shorter season, lots to learn and it is important to let companies show

interest that we do it right. >> talk a lot about climate change and the focus of the administration and the interior department so if you look at conventional or unconventional energy production or renewable, how do you decide where those areas, talked about primary spots where you think it would be good for wind energy, what is the frost is with the interior? >> it starts with science. where are the areas that are consistently windy? and where it is consistently windy, what other attributes might the area have? is it close to transmission? is it right in somebody's view? we have to think about all of those things. offer wins, 800,000 acres under lease. and we'd be conflicted that

before we put the acres up poorly so we said where it is the navy and coast guard activity? where is the merchant marine and fishing activities? what are the critical recreation areas? can you see these future winter events? is that going to bother anybody? >> short answer. >> we need to d conflict and say these are the areas with the lowest conflict and highest potential. these are areas with high potential but high conflict. there are places, national parks with oil and gas resources. i don't believe we should develop oil and gas in the arctic national wildlife refuge. the president agrees he made that point and that is the recommendation we make in congress. this is through applying science, understanding of the uses of the land, the impact of

the energy development and trying to chart a course forward that says let's go to areas where there is no conflict so we are doing that in utah with natural leasing plans and we are engaging local communities to support that effort. we have done the national petroleum reserve and doing it in the california desert. there are all kinds of areas off the coast of the atlantic and is working and the community is engaged. >> those are good solutions. when i was in the private sector we were developing off the coast of california and there was one proposal to encase the offshore rigs with mirrors so they would not be visual. we thought that was a bad idea. one of the reasons we invite you all is to participate, the secretary does agree to take some questions from the floor. we have a couple simple rules, when is to wait for the microphone. number 2 is to the extent you can, pose your question in the form of a question. have a little boy's infection at the end and identify yourself

and your affiliation. any questions? you are good. all the way in the back. >> my name is andrew, i am an intern and have a question about the department's initiative and forced respiration and energy opportunity energy opportunities and innovation. thank you. >> thank you very much for your question. there is actually a lot of work going on in the u.s. forest service which isn't part of the department of the interior but it is very important potential. for example because of climate change just a few degrees difference cause a proliferation many of you are aware of this, which if you are a westerner as i and you fly over, drive through these landscapes it is astounding how much standing dead timber there

is. there is full potential in this timber and that is something the secretary of agriculture has been working on with his team. it is a matter of economics. how you make it economic to harvest that for energy development or for manufactured wood products or otherwise but it is very important part of the equation. i will also say i visited the national renewable energy lab which is the d o e facility and there is incredible research going on in biomass energy development. more of that is with switch grass but also includes wood products so there is potential doing that and the research is critical to continue. it is not yet been done on an economic scale but only a matter of time and a good illustration where a little incentive, the right kinds of incentives of the oil and gas industry continues to enjoy and has for 30 years,

since i have been in the industry but they replaced me long before that and you take a few of those incentives and move them to areas that are just getting their start so technology could bring the price down and we could learn a lot from the science and that is a big part of where we have an opportunity to go. >> if i could pull back on that second. in times of low prices, fees or structures or economics change, for companies that struggling but you still want to get development can you be flexible in how you encourage or diss incentivize people from doing certain things? >> i have a great example for you, i hope the answers your questions. is a very concerned, being a company that supported outdoor recreation and yet having a

common footprint ourselves and wanted to about understanding that carbon footprint, figuring out where is the low hanging fruit and one of the areas was energy consumption. we went about figuring out what were our dirtiest markets. which stores are located in places that used high carbon producing sources of energy. so we took that and we married that with potential the local utilities had for green power and we locked in green power supply contracts to give those utilities certainty that they had a market for that green power. we signed up for long-term contracts. those contracts were more expensive than buying conventional energy but it was something we were committed to doing. that was in 2007. when oil prices ran up. at an end of the data as contracts end duhduhduduh up being much better for us economically because we locked in several years at a time.

oil and gas prices were high and electricity rates went up. that is an illustration where we as a business could help support renewable energy. the states but typically have those renewable facilities where states where there was some kind of renewal energy standard. it was an expectation that utilities have a certain percentage so basically it was a requirement that they developed it. if you mary that incentive or expectation from a state with a willing buyer and there are lots of buyers that want to reduce their carbon footprint you have a situation that actually drive the costs down for those technologies because more people get into it. and where we get solar panels on our roof and which ones, which states they get to and they have

to do with national a state incentives to support energy development and we accelerated. we did 11 one year because the tax benefits were expiring at the end of the year. a crazy way to do things, difficult to plan that way but that is how the better steps i talked-about worked with tax incentives around renewable. >> answer and does not help planning and that won't put you on the spot. we have a question in the front row. >> i am with advocates for the west in washington d.c.. i am intrigued by your presentation, madam secretary, regarding the conflicting energy development and conservation. i am wondering if you have had a chance to review recent letter from 11 states's scientists noting it appears the agency is abandoning science based conversation measures in

developing more elastic subjective measures. >> anyone in the audience have any idea what that is? quite a few. i know the front row does. two of our three are in a row over here. let me just for those who didn't raise their hands bring you up to speed of a little bit. there is species under consideration on the endangered species act, a minor part but i want to talk about. the major part is we have ecosystem's across the american west that are at risk of a number of different factors. we think about redwood forests in california as old-growth forests, we think about my home state of washington. the only big peninsula and the old growth trees as incredible habitats were the of protection but we have old-growth sagebrush

ecosystems throughout the great basin that are equally important to 350 species. greater sage grass is one of them but the pronghorn antelope and hundreds of other species called these places home. when we have a wild fires that burned for rangeland we can wipe out in the space of a day or two hundreds of thousands of acres hundreds of square miles just like that. we don't think about it as being old growth in the do when you have fires running through yosemite. but it is very important from habitat standpoint so we have 11 states working together to say how do we strike the right balance between conservation and development? in a state like wyoming development, oil and gas

resources some coal resource development can be the biggest potential disruptive to the structural habitat. in the great basin, wild land the biggest threat. comprehensive strategies across the landscape, to understand critical areas for these species to protect those areas with a highest love of protection. we are using sound science, the best available science we have. i haven't read specifically the letter you referenced it is very complicated, there are states that have done a lot of science, independent work, the work we do scientifically is available and open to the public some of the private science that is unbiased is that by states that is not open to the public. we take the official wildlife

science, all of the science into account. when we don't do that missing or not unwarranted, when it is challenged in court. it is unprecedented to have 11 states, 11 governors, seven governors most of the habitat working so hard alongside the fish and wildlife service and bureau of land management and private landowners. put in place approximated measures that protect these lands that helped define the american west and species that call it home. i am very proud of the collaborative work that happened with states, the fish and wildlife service, u.s. geological survey and the others and i am confident we will reach the right conclusion.

>> call it charlie. >> from brookings institution. the pipeline in alaska, such serious jeopardy as to its flow levels whether any criteria when you have these sales in alaska take into consideration those that might be the nearest if something is found to keep the pipeline alive. >> thank you for that question. i worked on the alaska pipeline when i was a college student a little engineering problem like what you doing when the pike moves and how do you keep the inflation on it, very tricky place to do business and what is interesting is when alaska chose land, the federal government shows land, native corporations

chose land, they chose the oil-field to develop that very softly and it peaked in production in the 80s. no surprise production is going down and i will say the state of alaska, and governor walker finds herself in. we support development in the national petroleum reserves in alaska, and the area outlining for myself , and the secretary and tawny has been out there. the national petroleum reserve, the unit which was the record of decision that we just reached in development with conoco phillips will pry into the outlying

facilities. the expectation that the national petroleum reserve was developed, that will keep oil flowing through but the other thing i would say, we did all the work to look at the national petroleum reserve critical habitat to not develop, really critical habitat for para. birds and other species. we thought about if there is exploration and ultimately production, is there a way to move that through the national petroleum reserve to the pipeline and if you look get the areas we set aside for conservation and development you will see that it facilitates the ability for the pipeline

corridor. the state of alaska, it is important to us. we will facilitate making public lands available. a whole bunch of factors with economics and supported with doing it in the right ways in the right places. >> one of the reasons we get folks like secretary sally jewell to join us is we try to adhere to their time constraints. they have an active day out side of csis as hard as that is to believe. i hope you come back. we will look for the proposal and given your background you are the right person at the right time. join me in thanking sally jewell. [applause]

>> thank you very much. [inaudible conversations] [inaudible conversations] [inaudible conversations] >> c-span2 providing live coverage of the u.s. senate floor proceedings and keep public policy events and every weekend booktv, for 15 years the

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