mr. secretary. let me begin by commending you and the president for getting us back to where we were before the deepwater horizon gulf spill, in terms of domestic drilling. it was the right step to take. now it's just the details of how we actually accomplish what the president laid out. and i can only say that speak -- you know, using words, actions speak louder than words. so that's where we are right now. it's not just about saying we want to expand drilling, but actually doing it. so i want to just clarity just a couple of things that i think are very important for the hearing, mr. chairman, as we try to push a bill through, or several bills to actually accomplish opening up drilling. i want to clear for the record that -- and this is from the eia, short term energy outlook, it's not mary landrieu, not a democratic or republican chart. this clearly says that today production of oil is highest level. but you can clearly see it's going down. if we don't start issuing permits more quickly for new d

mr. secretary, if you could hook up the computer. your packet should include a copy of our latest report for the latest quarter of this fiscal year. this covers december 26 through april 2. the publication of this report was delayed by a few weeks because it is essentially going to be the basis for the program revisions that we will be presenting to you in july. i advised you a month or so ago that we would be coming back to secure approval for budget. if you do approve those, we would turn to the revisions of the department of public health and safety -- safety seismic commissions. i wanted to thank the opportunity to thank my team for the extra effort and diligence that went into this particular report. we want to come out with as accurate of a forecast as possible. that is our understanding of project risks. starting with an overview of our local program, these are as of april 1. the number in parentheses are the projects in each stage. we only have five of our 40 local projects remaining. three of those five projects are actually

mr. secretary. would the clerk please five minutes on clockworks and as mentioned earlier, you visited south dakota with me and saw firsthand the dillinger and facing the country to really appreciate the visit on these needs. i would like to ask about the speed of the hudna distribution. mortgage-backed securities issued in fy 11 on january 27, 2011 compound and at present many have not received their full fy 11 funding. some have held housing development and others have started to eliminate the staff. what is the department dillinger to speed the provision process to ensure the tribes will receive their full allocation of fy 11 ai hbp funding program that the very earliest possible moment? >> senator, obviously the delay in approving the 2011 budget about half the way into the fiscal year has had a significant impact not only on the tribes, but on recipients of the funding across all of our programs. we have moved now that the budget is in place to accelerate the we that we are awarding that fundin

mr. secretary. would the clerk put five minutes on the clock? as you mentioned earlier, you visited south dakota with me and saw first hand the housing challenges facing indian country. i appreciate your visit and the focus on these needs. i would like to ask you about the speed of hud's indian housing block grant distribution. hud issued in fy '11 funding notice to tribes on january 27, 2011, at present many of our tribes have not received their full fy '11 funding. some tribes are halted housing development and others have started to eliminate staff. what is the department doing to speed up the distribution process so ensure tribes will receive their full allocation of fy '11 ihbg program funding at the very earliest possible moment? >> senator, obviously the delay in approving a 2011 budget about half of the way into the fiscal year has had significant impacts not only on tribes, but on recipients of hud funding across all of the programs. we have moved now that the 11 budget is in place to accel

mr. secretary. i want to welcome everyone to this joint special meeting. i want to thank the commissioners for making their very busy schedules available to be here today. if i may, unless there is any objection, hollywood like to quickly go forward and get that out of the way as we are waiting for staff to make their presentation. >> approval of the minutes for the april 18, 2011 meeting. >> these are the minutes. is there any member of the audience that wishes to speak? we have a motion by commissioner schmeltzer: -- supervisor mirkarimi. >> approval of the budget for fiscal year 2011-2012. >> this is the second and final vote on the budget. there are no changes to the draft budget. we are asking for the full amount that we are obligated to ask for under state statute which is $334,000. that is back at the general fund, but be allowed to use it. we have enough in the reserve fund to operate for another year. >> any commissioners have questions on item 9? any member of the public that would like to speak on item nine? public comment is closed. this is the

mr. secretary, it's fun to have you back on the broadcast today. thank you so much.i'll be back in a moment. with some final thoughts. >> thank you, bob. your advertising mail campaign is paying off! business is good! it must be if you're doing all that overnight shipping. that must cost a fortune. it sure does. well, if it doesn't have to get there overnight, you can save a lot with priority mail flat rate envelopes. one flat rate to any state, just $4.95. that's cool and all... but it ain't my money. i seriously do not care... so, you don't care what anyone says, you want to save this company money! that's exactly what i was saying. hmmm... priority mail flat rate envelopes, just $4.95 only from the postal service. a simpler way to ship. >> schieffer: finally this month we begin my 21st year as the moderator of face the nation. as i was looking over our broadcast for the past ten years i was struck by how much time we've devoted to 9/11 and its after math. from that sunday when we heard these chilling words from the president.... >> we're at war. >> schieffer: we h

mr. secretary, it's fun to have you back on the broadcast today. thank you so much. i'll be back in a moment. with some final thoughts. >> thank you, bob. >> schieffer: finally this month we begin my 21st year as the moderator of face the nation. as i was looking over our broadcast for the past ten years i was struck by how much time we've devoted to 9/11 and its after math. from that sunday when we heard these chilling words from the president.... >> we're at war. >> schieffer: we have devoted more time this story and its after math than any other single story. we spent 50% of our time on this one. the bush administration told us early on what was coming. >> we're coming i think to the end of the diplomatic phase, if you will. >> schieffer: we saw a build-up of american forces in iraq, afghanistan. the in's and out's of policy. the things we did right and the things we did wrong. we never found iraq's weapons of mass destruction. but we found the iraqi tyrant saddam hussein. for most of that ten years osama bin laden eluded us. >> we don't know where osama bin laden

mr. secretary. we are happy to have the ear and excited about this appointment. he liked it all so -- we are happy to have you here and deexcited about this appointment. we are also delighted to welcome the family. emily is 6 and she told us where she is going to school. she would be much happier if the hearings were over and her father could leave right now. gary locke's to read it partner in life and this effort, mona. we are happy to have you all here. -- gary locke's terrific partner in life and his efforts, mona. this appointment -- our relationship with the people's republic of china stands as one of the most important relationship for our country -- most important relationships for our country today. much of what we accomplish with china will help shape this century. if confirmed by the senate, which i fully expect, secretary gary locke will join a unique group from george h. w. bush to winston lord, who have served in this position. it is obvious to all, but nevertheless worth pointing out y

mr. secretary. now may i call upon the new chief of staff of the united states army, general dempsey. >> thank you very much, chairman, vice-chairman cochran. thank you for the opportunity to discuss our army with you this morning. and thank you, mr. secretary, for the vote of confidence. since i assumed the duties of the 37th -- a staff of the army i it worked to get a feel for where we are and help and for my thoughts of where we need to go in the future. one of the very first thing they did was to go to iraq and afghanistan to visit our troops and to see firsthand their accomplishments and to thank them for their coverage, their sacrifice, and their service. i visited soldiers and families back here in the continental united states as well and the this week and i will visit the corps of engineers who are working tirelessly to combat the historic flood level along the mississippi river valley. and then i will travel to fort carson, colorado, to hand out awards. what we are able to do as an army at

mr. secretary, let's just do them one at a time. secretary housh: i know of 13, -- i the number 13, discussion possible action to approve additional increases to the cost and schedule contract contingencies in the amount of $339,000 for a total amount of almost $3.50 million and 705 consecutive calendar days. vice president moran: commissioners, we have the package in front of us. would you like to have the presentation, or do you have specific questions could ok, then if i could have a motion? moved and seconded. is there any public comment. secretary housh: we have no speaker cards. vice president moran: ok, the motion carries. secretary housh: the next item would be item number 14, the discussion possible action to approve increases to the existing contract cost and schedule for water and a prize, water system improvement program hh-935a, and to authorize the general manager to consider it is appropriate to approve my invitations to the contract amount and duration for a total of over $16.50 million in 621 consecutive calendar da

mr. secretary. >> thank you, mr. secretary. let me begin by commending you and the president for getting us back to where we were before the deepwater horizon spill, in terms of having a vision for opening up more domestic drilling. i appreciate that. it was the right step to take. now it is the details of how we actually accomplish what the president laid out. i can only say -- using words, actions speak louder than words. that is where we are right now. i am not just saying we want to expand drilling, but actually doing it. i want to clarify a couple of things that are important as we try to push the bill through to actually accomplish opening up drilling. i want to clear for the record -- and this is from the eia short-term energy outlook. this is not a democrat sure. this is not a republican star. this clearly says the production of oil is as high as it has ever been, that you can clearly see it is going down. and if we do not start issuing permits more quickly for new drilling, if we do not start exploring in areas that re

mr. secretary. we appreciate you being here to help us understand the administration proposal for spending in your department for the next fiscal year. i'm pleased to notice that it is recommended that nuclear energy continue to have a place in the national strategy for energy independence and guaranteed supplies of energy for the country. there is an increase in funding for the office of nuclear energy we noticed in the budget request. i wonder what do you think the priorities of that office should be in terms of reaching our goals and helping maintain our energy security as a nation? >> i would love to answer that question. the way we are looking at this is what the industry is going to be doing and what can we do to add value to this thing's for example using high-performance computing which is a sweet spot. high-performance computing like what is done at senator alexander's laboratory in oak ridge and the fastest civilian allies disputed china pushing out ahead, but to use high performance compu

mr. secretary. secretary: a discussion to adopt a fiscal surcharge beginning in 2012 for the environmental surcharge structure beginning in fiscal year 2011-12, and continuing, to authorize the general manager to establish and manage it if it is approved by the board of supervisors and adopt findings pursuant to the california environmental quality act, as required under the terms of the water supply agreement between the city and county of san but cisco and the wholesale customers, which was approved in 2009. -- city and county of san francisco and in wholesale customers. >> you have been hearing about the surcharge over the last six months, when you adopt the interim supply. this is the second part of that. it actually puts into place the projected water use exceeding the amounts, which is not projected to exceed, but nevertheless, we are to adopt the fiscal 2011-12 rate setting process. it is required under the contract. for water sales to be effective, with the fiscal year 2011-2012 delivery, us

mr. secretary, you say it's hard to fill these jobs. >> we want to put up people who can be confirmed. who can do those jobs. finding the intersection between those two things is more difficult. people are willing to come and congress is unwilling to confirm, you know, nobel prize winning economists. people with no political history, no political background, no politics, independent people who have a great record of experience running jobs that are difficult to do in supervision and things like that. so that's going to have to change. you know, i hope it will change. we're working very closely with the people we need to work with to try to find a way to, you know, unfreeze this and it's very important that we do that. >> mr. secretary, before this i was visiting with playbookers and many were kind to suggest questions but the question that was most often suggested this morning -- people want to know how you felt about the portrayal of you in hbo's movie "too big to fail" based on andrew ross sorkin's book which we affectionately called "too big to read." [laughter] >> i have -- i hate

mr. secretary? what other commission business. does any commissioner happening in light of? >> hearing done, next item. >> the report of the general manager. " we have a quarterly financial report? -- >> we have the quarterly financial report? >> [inaudible] >> would you like to make a public comment? we called public comment a little while ago, but these come forward if you have something to say. sorry. >> i have a question about the report or gray water. i want to know if there is a manual in progress that is designed for indoor use of gray water. apparently there is a design manual for outdoor use. can someone answer that? >> yes, please. but paula? >> thank you. what i am the manager of water resources. we do not have a design for indoor use. we have a design manual for outdoor irrigation only. i am happy to share it up with you. >> indoor use is a much more involved process? >> yes. let's not in progress currently. >> thank you. >> other public comments on the general managers' report? sorry, on the communications? now we are moving to the quarterly financial report. >>

mr. secretary. . generous time, and we do have some additional questions they will be submitted for the record. but we appreciate your being here. did you have something you would like to say? go ahead. in very quickly, because tom hunter, we have been working on the ocean safety advisory committee which is really doing some great work with the questions that were asked here. we also have a proposal in front of the u.s. senate and this committee for the creation of an ocean energy safety institute. i like to ask you if you would allow us to give us a quick two- minute summary of what we are seeking their. it is responsive to her question. >> why the night go ahead? >> i will be quick. this in some response to her question. the ocean energy safety committee and populated by folks from academia, other governmental agencies, and industry has the task of trying to do a survey of what research and development is going on in the areas of well control, containment and spill response. but there is no central

mr. chairman. under secretary burns we're grateful for your public service and for your appearance here today and your ongoing commitment to engage in and accept the responsibility of public service yet again. we don't have time to list all of the positions that you've held but they've all been difficult. and they've all been positions of significant responsibility. and when you serve the public, they do as well by extension and i know the support that they give you so we're grateful for that. i want to turn first to iran. it needs no -- i don't need to recite for you the challenges that iran presents for the region, the middle east and the world. we're, of course, concerned about two basic areas. one is their nuclear capability. and their determination to have a nuclear weapon, in my judgment, and i think in the judgment of others. in addition to that, what even absent that, even if that were not a threat, as it is, their demonstrated support for terrorism throughout the region and well beyond the region especial

mr. secretary. would the clerk please five minutes on clockworks and as mentioned earlier, you visited south dakota with me and saw firsthand the dillinger and facing the country toeally appreciate the v .. needs. i would like to ask about the speed of the hudna distribution. mortgage-backed securities issued in fy 11 on january 27, 2011 compound and at present many have not received their full fy 11 funding. some have held housing development and others have started to eliminate the staff. what is the department dillinger to speed the provision process to ensure the tribes will receive their full allocation of fy 11 ai hbp funding program that the very earliest possible moment? >> senator, obviously the delay in approving the 2011 budget about half the way into the fiscal year has had a significant impact not only on the tribes, but on recipients of the funding across all of our programs. we have moved now that the budget is in place to accelerate the we that we are awarding that funding, in fact o

mr. secretary. would the clerk please five minutes on clockworks and as mentioned earlier, you visited south dakota with me and saw firsthand the dillinger and facing the country to really appreciate the visit on these needs. i would like to ask about the speed of the hudna distribution. mortgage-backed securities issued in fy 11 on january 27, 2011 compound and at present many have not received their full fy 11 funding. some have held housing development and others have started to eliminate the staff. what is the department dillinger to speed the provision process to ensure the tribes will receive their full allocation of fy 11 ai hbp funding program that the very earliest possible moment? >> senator, obviously the delay in approving the 2011 budget about half the way into the fiscal year has had a significant impact not only on the tribes, but on recipients of the funding across all of our programs. we have moved now that the budget is in place to accelerate the we that we are awarding that fundin

mr. secretary. secretary: a discussion to adopt a fiscal surcharge beginning in 2012 for the environmental surcharge structure beginning in fiscal year 2011-12, and continuing, to authorize the general manager to establish and manage it if it is approved by the board of supervisors and adopt findings pursuant to the california environmental quality act, as required under the terms of the water supply agreement between the city and county of san but cisco and the wholesale customers, which was approved in 2009.

mr. secretary. >> mr. secretary the governor recently traveled to visit with u.s. senator corker about environmental cleanup at oak ridge urging a focus on the dangers of the mercury there and factoring the large population of region. would be remiss if i didn't say thank you for the meeting and underscore the importance of that. my questions though are along the lines of my comments and opening statement about energy research. does this sound about right that the department has about $6 billion more or less for energy research? what should he? if you were professor -- and were bound by the us is -- office of budget or let me put it another way, you talk about hubs and i talk about manhattan projects. are revoked talking about accelerating energy research in a focused way? bes and i am here to defend the president's budget but i would love to see increases. i think as i said before the research we do, with the goal of getting the private sector to pick up the stuff and run with it and to give them a

mr. chairman. secretary, thank you for being here. mr. bromwich, mr. hayes, thank you. i thank you for the efforts that you have made. i think the president's announcement this week as it related to alaska and the efforts on the annual lease sales up in npra, the permitting, i think these are positive signals. obviously we want to make sure they translate into action and reality so we will be working with you on that. but mr. hayes, i want to simply -- single you out here and thank you for your efforts to try to reach a resolve on cd-5 in the npra. i think we recognize this is critically important and it speaks to some of what senator hutchison and senator begich were discussing earlier about the coordination within agencies. i think we recognize we have a lot to do, but we have to find a path forward there. i want to continue working with you on that. secretary, i want to ask you for a little bit of claire if i -- clarification here. because you have discussed the various incentives that you wish to put in place to advance increased oil and gas production. and when i t

mr. secretary, thank you for your service to our country. it is exceptional and i appreciate it very much. this is an incredibly important position that you have been nominated to. i have three lines of questioning i hope to pursue with you. one is on taiwan, one is iran, and the other is intellectual property issues. i spoke at a caucus, and i am concerned about the military and ballots in the taiwan straits. reports issued by both taiwanese and u.s. authorities outlined the direct threat faced by taiwan as a result of a military buildup by china. an expert in both our country and taiwan has raised concern that taiwan is losing the qualitative advantage in defense that has served as its primary military deterrent against china. to counter this build up, the taiwanese have sought to modernize their fighter fleet, which i believe in terms of taiwan's's defense and deterrence, capacity is in the u.s. security interests as well. all sent a letter to the president along with members of the senate requesting the administration except by 1's lette

mr. secretary. we appreciate you being here to understand the administration's budget for the next fiscal year. it is recommended that nuclear energy continue to have a place in the national strategy for energy independence and provide supplies for our country. an increase for the office of nuclear energy, we notice of the budget request. what do you think the priorities of that office should be in terms of reaching our goals and helping maintain our energy security as a nation? corks sure. i with the to mention that question. -- >> sure. i would love to answer that question. what can we do to add value to this? using high-performance computing is a very sweet spot. >> said again. >> high performance computing. there is -- to you high- performance computing to design next generation reactors and had to deal with these things so you can skip engineering steps and engineering design, you can simulate in a much wider space. we can do things of that nature. senator alexander spoke about how to develop f

mr. secretary if you would call those items please. >> discussion of possible action on behalf of the city ask county of san francisco to allocate and manage costs until the federal energy regulatory commission issues a new license for the don pedro project and further to authorize the general manager of the sfpuc to allocate an amount to not exceed $750,000 for the duration of this five-year agreement between 2011 and 2016. 18, discussion -- 19 discussion and possible tooks approve the terms and conditions and authorize the general manager of the san francisco public utilities commission to convey at no cost to the city of santa clara acting through its electric utility company known as silicon valley power a non-exclusive electrical utility easement to provide the electrical power service needed to operate the bay division pipeline number 3 and crossover facility at the guadalupe a site in the city of santa clara. >> do i have a motion? i have a question on item 19. whose power is actually being provided to run our facilities? >> we have access to silicon valley power agency. >> wait. i

mr. secretary. and what remember what they said a year ago to parties working together in the national interest. now what do we have? two parties threatening to sue to each other in their own interest. and what the public is saying on police cuts objects tuition fees, on the nhs, this is not what he we voted for. having broken so many of their promises a year ago, how can the public believe anything that they are saying in these elections tomorrow. >> even the jokes were bad this week. the fact is what this coalition government has done over the last year is frozen council tax, capped immigration, introduced a pupil premium, linked the pension back to earnings, cut corporation tax and set up more academies in 10 months than the last government set up in 10 years. and with council elections tomorrow, people should remember the mess that labour left us in and resolve themselves, don't let labour or duty cancel what they did to our country. >> caroline dinage, caroline dinage. order, order. the ministe