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93–217 PDF 2004

S. HRG. 108–422

SUSAN JOHNSON GRANT NOMINATION

HEARING

BEFORE THE

COMMITTEE ON 

ENERGY AND NATURAL RESOURCES 

UNITED STATES SENATE

ONE HUNDRED EIGHTH CONGRESS

SECOND SESSION

on the

NOMINATION OF SUSAN JOHNSON GRANT, NOMINEE TO BE CHIEF 

FINANCIAL OFFICER OF THE DEPARTMENT OF ENERGY

FEBRUARY 26, 2004

(

Printed for the use of the 

Committee on Energy and Natural Resources 

(II)

COMMITTEE ON ENERGY AND NATURAL RESOURCES 

PETE V. DOMENICI, New Mexico, Chairman 

DON NICKLES, Oklahoma 

LARRY E. CRAIG, Idaho 

BEN NIGHTHORSE CAMPBELL, Colorado 

CRAIG THOMAS, Wyoming 

LAMAR ALEXANDER, Tennessee 

LISA MURKOWSKI, Alaska 

JAMES M. TALENT, Missouri 

CONRAD BURNS, Montana 

GORDON SMITH, Oregon 

JIM BUNNING, Kentucky 

JON KYL, Arizona 

JEFF BINGAMAN, New Mexico 

DANIEL K. AKAKA, Hawaii 

BYRON L. DORGAN, North Dakota 

BOB GRAHAM, Florida 

RON WYDEN, Oregon 

TIM JOHNSON, South Dakota 

MARY L. LANDRIEU, Louisiana 

EVAN BAYH, Indiana 

DIANNE FEINSTEIN, California 

CHARLES E. SCHUMER, New York 

MARIA CANTWELL, Washington

ALEX FLINT, Staff Director 

JUDITH K. PENSABENE, Chief Counsel 

ROBERT M. SIMON, Democratic Staff Director 

SAM E. FOWLER, Democratic Chief Counsel 

(III)

C O N T E N T S 

STATEMENTS 

Page

Domenici, Hon. Pete V., U.S. Senator from New Mexico ..................................... 1

Grant, Susan Johnson, Nominee to be Chief Financial Officer, Department 

of Energy ............................................................................................................... 2

Thomas, Hon. Craig, U.S. Senator from Wyoming ............................................... 7

APPENDIX 

Responses to additional questions .......................................................................... 9

(1)

SUSAN JOHNSON GRANT NOMINATION 

THURSDAY, FEBRUARY 26, 2004

U.S. SENATE, 

COMMITTEE ON ENERGY AND NATURAL RESOURCES, 

Washington, DC.

The committee met, pursuant to notice, at 2:30 p.m., in room 

SD–366, Dirksen Senate Office Building, Hon. Pete V. Domenici, 

chairman, presiding. 

OPENING STATEMENT OF HON. PETE V. DOMENICI,

U.S. SENATOR FROM NEW MEXICO 

The CHAIRMAN. I have just been informed the minority member, 

Senator Bingaman, asks that I proceed on the basis that he has already talked with you. So with that, we will get going here. 

The first thing I wanted to recognize is that you have—the reason we have a crowd is because you have all your relatives here. 

And so why do we not start with just asking them to stand up? 

And I will just say that it is good that you have so many wonderful 

relatives who would be supporting you. And you have told me that 

your husband and your 84-year-old father are here. 

Ms. GRANT. Yes, sir. 

The CHAIRMAN. And I am just going to say all of the rest of you 

cannot be any closer than those two, so we are going to say thanks 

to all of you through them for coming. 

It is not going to take us long, and her desire that she get this 

job—other things go slow once they get to the Senate, Susan, which 

is not my doing. 

[Laughter.] 

The CHAIRMAN. Good afternoon and welcome for this hearing 

where we are going to consider the nomination, your nomination to 

be Chief Financial Officer for the Department of Energy. The rules 

of the committee, which apply to all nominees requires that they, 

one, be sworn in in connection with their testimony. 

Please rise and raise your right hand. 

Do you solemnly swear that the testimony you are about to give 

to the Senate Committee on Energy and Natural Resources shall 

be the truth, the whole truth and nothing but the truth? 

Ms. GRANT. I do. 

The CHAIRMAN. Please be seated. 

[Pause.] 

The CHAIRMAN. Before we begin your statement, I will ask you 

three questions that are addressed to each nominee before this 

committee. 

2

One, will you be available before the committee and other congressional committees to represent the Department’s position and 

respond to issues of concern to the Congress? 

Ms. GRANT. I will. 

The CHAIRMAN. Are you aware of any personal holdings, investments, or interests that could constitute a conflict or create the appearance of such a conflict should you be confirmed and assume the 

office to which you are being nominated by the President? 

Ms. GRANT. My investments, personal holdings and other interests have been reviewed both by myself and the appropriate ethics 

counselors within the Federal Government. I have taken appropriate action to avoid any conflicts of interest. There are no conflicts of interest or appearances thereof to my knowledge. 

The CHAIRMAN. Are you involved or do you have any assets held 

in blind trust? 

Ms. GRANT. No. 

The CHAIRMAN. Let me say that it is a challenge these days to 

find qualified individuals who are willing to serve and devote themselves to government service, so I want to thank you for your long 

history of competent service to our government and your willingness to accept this position at the Department. 

I understand that you have—I was repeating your family. That 

is already done. 

[Laughter.] 

The CHAIRMAN. I wanted to say to you before you give your statement, which I hope is brief—and what you do not say we will make 

a part of the record. I just want to tell you that I have more than 

a bit of knowledge of the Department of Energy, and it is a very, 

very tough department, very confusing and very—there is no 

straight line to very many things. They curl and go around the 

table and all kinds of funny things. 

You have a very tough job catching on and getting it done, but 

I think that if you are really as diligent and—that—as diligent as 

you are committed, things will work out. 

I want to indicate to you, as chairman of the committee, I also 

happen to be chairman of the subcommittee which pays for all of 

what you do, and I would be very glad to at any time you would 

like to confer or discuss with you whatever you would like. 

With that, could you give us your opening statement? Whatever 

you have ready will be made a part of the record, and you take 5 

minutes and give us your statement. 

STATEMENT OF SUSAN JOHNSON GRANT, NOMINEE TO BE 

CHIEF FINANCIAL OFFICER, DEPARTMENT OF ENERGY 

Ms. GRANT. Thank you, Mr. Chairman. Thank you for the opportunity to appear before you today. 

I am honored to be the President’s nominee to be Chief Financial 

Officer at the Department of Energy. And I have submitted a formal statement, and I appreciate you including that, sir. If I could, 

I would like to briefly summarize my statement. 

Before I begin, because it is extremely important to me to have 

my family and friends here, I do want to recognize them myself, 

as you have done, and I appreciate that, sir. My strongest supVerDate 0ct 09 2002 12:51 Apr 26, 2004 Jkt 000000 PO 00000 Frm 00006 Fmt 6633 Sfmt 6633 J:\DOCS\93-217 SENERGY3 PsN: SENE3
3

porter and trusted partner is my husband, Douglas Grant, a former 

Air Force Colonel, who served the Nation in uniform for 24 years. 

My anchor and my guide is my father, C.A. Johnson, a World 

War II veteran, and my stepmother, Ann; my sage advisor, my father-in-law, Edmund Grant, also a World War II Veteran and his 

wife Marie; and my siblings, my brother, Charles Johnson and 

wife, Betty; my sister, Faye Johnson; my sister, Brenda Johnson 

King; my brother, Richard Johnson; my brother-in-law, Jeffrey 

Grant, and rounding out the group—and my brother, Richard Johnson. And rounding out the group are my Aunt Annette and Uncle 

Billy Benefield and my good friends, Melody Robinson, Hyesuk 

Bellino and Richard Aiken. 

And, Mr. Chairman, you know it is family and friends that keep 

us grounded and remind us what public service is all about. 

And good government is about what we do every day as responsible stewards for the American taxpayer. Public service is a trust. 

It is a calling that I take with utmost seriousness. I believe it important to tell you a little bit about myself, what I bring to the 

table, and what you as the Department’s oversight body can expect 

from me. 

First, I have served the Nation as a public servant for over 30 

years in the Defense Department, from weapon system development as a logistician, to manpower management as a budget officer, to fiscal responsibility as the chief financial officer in my 

present position at the Defense Finance and Accounting Service. I 

am a responsible, fully accountable and engaged manager and leader. 

Second, growing up in the Defense Department brings with it 

considerable rigor, structure and accountability. The resource management process has at its very core a strict discipline, where planning drives budget, which results in execution and tracks back to 

planning. A disciplined review process throughout the cycle ensures 

planning is focused on quantifiable needs, and final budget decisions are focused on maximizing mission accomplishment with minimum resources. 

This process produces results. Using this rigor in the Defense Finance and Accounting Service, we reduced our costs to our military 

customers by over $250 million in the last two fiscal years, while 

exceeding previous quality levels. I like that discipline. It is a 

closed-loop system and ensures that resources are tied to results. 

If confirmed, I would pursue a similar disciplined approach for ensuring strategy drives budget, is linked to execution, and is measured by results. 

Third, I believe we should manage the Government more like a 

business with an open book policy. There is room to adopt solid financial business practices in all areas of government, regardless of 

how efficient or effective we may believe our operations to be. 

Financial transactions result from business decisions, not vice 

versa, and sound accounting principles dictate the treatment of 

those transactions on the financial statements. That is universal, 

or should be, and is what the Chief Financial Officers Act of 1990 

is all about in its move to bring government accounting more in 

line with private sector accounting. 

4

I am proud to say that, under my leadership, the Defense Finance and Accounting Service became the first operational entity 

to receive an unqualified or clean opinion on its financial statements. That means that our records conformed with accounting 

principles generally accepted in the United States, not just in government. And not only did we receive one such opinion, we have 

now received four consecutive clean opinions. 

Equally important, the Department of Energy has received clean 

opinions for the last 5 years. If I am confirmed, a top priority of 

mine will be to ensure that this record of success continues. 

At the same time, it is important to keep in mind that audits are 

a means to an end, and not an end unto themselves. It is really 

about using quality information to improve the decision making 

process. Successful businesses operations, regardless of private or 

public sector focus, need forward-looking information, or what I 

like to refer to as front windshield versus rearview mirror snapshots. 

So often our financial information is more akin to rearview mirror data, telling us where we have been instead of what we need 

to know about where we are going. Managers need intelligence, 

business intelligence, not just more financial data. If confirmed, I 

would work to provide the Department’s managers the information 

they need to make informed decisions, providing better business intelligence for decision makers. 

Fourth, I am a solid proponent of performance measurement and, 

with that, you get the accountability in government we all want. 

We all recognize you get what you measure, so identifying the appropriate kinds of metrics is critical to successful organizations. 

I believe performance measurement success comes when an organization moves from identifying inputs, raw materials, and goes beyond outputs, producing widgets, to focusing on outcomes or results. 

At the Defense Finance and Accounting Service, through the use 

of metrics, we cascaded the balanced scorecard throughout the 

agency linking organizational and individual performance plans to 

these measures. As a senior executive, my individual performance 

evaluation is directly tied to my organization’s performance measures and, likewise, I link the individual performance plans of my 

direct reports to their organizational measures. This is performance 

accountability at work. If confirmed, I would continue this pursuit 

for performance measurement and accountability in government 

operations. 

And finally, relationship management and the value of solid 

working relationships built on mutual respect, confidence in information sharing, and open communications. If I am confirmed, I 

want to build on the relationship between the Department’s Chief 

Financial Officer and this committee and other committees to pursue what is best for the Nation as a whole. You can count on me 

to be open, honest, and forthright. 

Mr. Chairman, I grew up on a farm in rural Georgia, a proud 

daughter of C.A. Johnson. My father taught me many things. I recall one very important piece of advice he gave me, and I want to 

share it with you all in closing. He taught me while there are many 

ways you can get your foot in the door, there’s only one way you 

5

can keep it there, and that is through your skill, ability, and integrity. I come before you today, I believe, well equipped for the task 

at hand. 

If confirmed, I pledge to work with you to remain in the door, 

just like my daddy taught me. 

Mr. Chairman, this concludes my statement. Thank you for your 

consideration of my nomination and the opportunity to appear before you today. I would be pleased to respond to any questions you 

all may have. 

The CHAIRMAN. Thank you very much. 

[The prepared statement of Ms. Grant follows:]

PREPARED STATEMENT OF SUSAN JOHNSON GRANT, NOMINEE TO BE CHIEF

FINANCIAL OFFICER, DEPARTMENT OF ENERGY

Chairman Domenici, Senator Bingaman, and distinguished Members of the Committee, I am honored to appear before you today as President Bush’s nominee to 

be the Chief Financial Officer of the Department of Energy. I am also extremely 

grateful for the confidence that Secretary Abraham has placed in me. 

Mr. Chairman, I would like to introduce my support group who has accompanied 

me today, a select group of family members and special friends. My most ardent 

supporter, valued friend, and trusted partner, my husband, Douglas Grant, a former 

Air Force colonel. My father, C. A. Johnson, a World War II Veteran hailing from 

the great state of Georgia and my stepmother, Ann. My father-in-law, Edmund 

Grant, also a World War II Veteran representing the state of Florida and his wife 

Marie. And my siblings: my brother Charles Johnson and wife Betty; my sister Faye 

Johnson; my sister Brenda Johnson King; and my brother Richard Johnson. Each 

of them is also from Georgia with the exception of my sister Faye who joins us from 

Nevada. I am also pleased to have my Aunt Annette and Uncle Billy Benefield, also 

from Georgia, here and my good friends, Melody Robinson, Hyesuk Bellino and 

Richard Aiken. I want to thank all those assembled today as well as those family 

members and friends unable to attend for their unending support. 

I have served the Nation as a public servant for the past 30 years and, if confirmed, I will continue to put the interests of the Nation as my top priority. Public 

service is a trust, a calling that I take with utmost seriousness. I believe it important to tell you a little about myself, what I bring to the table, and what you as 

the Department’s oversight body can expect from me. 

First, as you may be aware, my entire career has been in Defense and it has been 

focused on one facet or another within the resource management arena. From weapon system development as a logistician to manpower management as a budget officer to fiscal responsibility as a chief financial officer in my present position, I am 

a fully accountable, responsible and engaged manager and leader. These attributes 

are directly transferable to the Department of Energy. 

Second, growing up in the Defense Department brings with it a certain amount 

of rigor, structure and accountability. The resource management and funds distribution process within Defense, what we refer to as the Planning, Program, Budgeting 

and Execution System, has at its very core a strict discipline. That discipline is 

founded in the need for a viable strategic planning process driven by mission priorities, integrated with resource allocation practices and linked to execution in measurable ways, in other words planning drives budget which results in execution and 

tracks back to a plan. A disciplined review process throughout the cycle ensures 

planning is focused on quantifiable needs and final budget decisions are focused on 

maximizing mission accomplishment with minimum resources. It’s the basic capability needs assessment with gaps in performance levels defined, evaluated and resource levels quantified for trade-off decisions. This process produces results. Using 

this rigor in the Defense Finance and Accounting Service, we reduced our costs to 

our military customers by over $250 million in the last two fiscal years. I like that 

discipline as it’s a closed-loop system and ensures that resources are tied to results. 

If confirmed, I would pursue a similar disciplined approach for ensuring strategy 

drives budget, is linked to execution and measured by results. 

Third, I believe we should manage the government more like a business with an 

open book policy. There is room to adopt solid financial business practices in all 

areas of government operations, regardless of how efficient or effective we may believe our operations to be. The Chief Financial Officers Act of 1990 outlined certain 

statutory responsibilities for the CFO. Prominent among them is the preparation of 

6

an annual report that includes the Department’s financial statements and audit. Financial transactions result from business decisions, not vice versa, and sound accounting principles dictate the treatment of those transactions on the financial 

statements. That’s universal, or should be, and is what the CFO Act of 1990 is all 

about in its move to bring government accounting more in line with private sector 

accounting. 

I am proud to say that, under my leadership, the Defense Finance and Accounting 

Service became the first operational entity in the Defense Department to receive an 

unqualified or clean audit opinion on its financial statements. This means that our 

records conformed with accounting principles generally accepted in the U.S., not just 

in government. Not only did we receive one such opinion, but we have now received 

four consecutive clean audit opinions. These annual audits were conducted by two 

different independent private sector audit firms with the most recent audit occurring while we converted to a new accounting system. Obtaining a clean opinion 

builds credibility with organizational stakeholders and instills confidence in the fiscal health upon which the organization rests. Equally important, the Department 

of Energy has received clean opinions for the last five years. If I am confirmed, a 

top priority of mine will be to ensure that this noteworthy record of success continues. 

At the same time, if confirmed, I would work to provide the Department’s managers the information they need to make informed decisions, providing better business intelligence for decision-makers. Audits are a means to an end, not an end unto 

themselves. It’s really about using quality information to improve the decision making process and successful businesses need forward-looking information, or what I 

like to refer to as ‘‘front windshield’’ versus ‘‘rear view mirror’’ snapshots. So often, 

our financial information has been more akin to rear view mirror data, telling us 

where we’ve been instead of what we need to know about where we’re going. This 

analogy ties back to my earlier remarks on the disciplined review process and the 

need for the direct linkage between mission and budget priorities. Managers need 

intelligence, business intelligence, not just more financial data. If confirmed, this 

will continue to be a priority for me—to ensure that financial data is turned into 

information to enable knowledge for sound business decision making. 

Fourth, I am a solid proponent of performance measurement and with that you 

get the accountability in government we all want. We all recognize you get what 

you measure, so identifying the appropriate kinds of metrics is critical to successful 

organizations. Influencing the right behavior through appropriate measurement programs is both science and art. The science is embedded in understanding the business side of the equation and the application of applicable measurement techniques, 

such as six sigma. The art is resident in the cultural aspects associated with change 

management, such as lean thinking that focuses on customer value and the pursuit 

of perfection. I believe performance measurement success comes when an organization moves from identifying inputs (raw materials), and goes beyond outputs (producing widgets) focusing on outcomes (results). 

As the CFO for the Defense Finance and Accounting Service, I led the initiative 

to implement a performance measurement program for the finance and accounting 

function. We adopted a balanced scorecard methodology to measure our progress in 

attaining our goals and integrated this with a performance management process 

that aligns employee performance standards with scorecard metrics. At the Defense 

Finance and Accounting Service, through the use of metrics, we cascaded the balanced scorecard throughout the Agency linking organizational and individual performance plans to these measures. As a Senior Executive, my individual performance evaluation is directly tied to my organization’s performance measures and, 

likewise, I link the individual performance plans of my direct reports to their measures. This is performance accountability at work. If confirmed, I would continue this 

pursuit for performance measurement and accountability in government operations. 

Finally, I applaud the desire to continue developing a solid working relationship 

between the Department’s Chief Financial Officer and the staff of this Committee 

and other Committees. These relationships are built on mutual respect, confidence 

in information sharing, and open communication. If I am confirmed, I want to build 

on those relationships to pursue what’s best for the Nation as a whole. As a public 

servant, I will endeavor to ensure that the Congress gets the information it wants 

when it wants it and that the information is accurate and reliable. You can count 

on me to be open, honest, and forthright. 

I began my remarks stating my intent to tell you about me and the take-aways 

I trust I have offered are:

7

• I am a firm believer in ‘‘business is business’’ and ‘‘financial management is financial management’’ and sound financial management transcends the business 

commodity, whether it’s private sector, Defense, or Energy. 

• Discipline, review and measurement, accountability and an open book policy 

make strong partnerships. 

• Relationship management is all about communication and trust. 

• I have delivered and, if confirmed, I will continue to do so.

I grew up on a farm in rural Georgia, a proud daughter of C.A. Johnson. My father taught me many things. I recall one very important piece of advice he gave me 

and I want to share it with you all in closing. He taught me that while there are 

many ways you can get your foot in the door, there’s only one way you can keep 

it there and that’s through your skill, ability, and integrity. I come before you today, 

I believe, well equipped for the task ahead, and if confirmed, I pledge to work with 

you to remain in the door. 

Mr. Chairman and Members of the Committee, this concludes my statement. 

Thank you for your consideration of my nomination and the opportunity to appear 

before you today. I would be pleased to respond to any questions you may have.

The CHAIRMAN. The Senator from Wyoming is here. Senator 

Thomas, do you have any questions? 

Senator THOMAS. No, sir. I would like, if I might, just to take—

make a short statement, however. 

The CHAIRMAN. Please do. 

STATEMENT OF HON. CRAIG THOMAS, U.S. SENATOR

FROM WYOMING 

Senator THOMAS. We are glad to have you here. Certainly your 

financial role will be very important, and I just wanted to share 

with you some ideas that I hope that we can follow in the Department of Energy. I think we have to have a policy. We have a long 

ways to go to provide this country with the energy that it needs, 

and we need to plan to do that. 

For instance, in coal, we need the research so we can have clean 

air, so we can use that fossil resource, which is our largest supply. 

We need to look at the alternative uses, such as the hydrogen that 

we are talking about doing. And in that regard, of course, we are 

talking about the future gen facility. And obviously, I would like 

to see them look at Wyoming where the major coal is produced. 

We need to take a look at our gas production. We can produce 

more. We need more permitting and to be able to move it there. 

We need to, I believe, begin to continue to have the Federal research facilities, such as RMOTC in Wyoming that does, for instance, now is working on sequestering CO2. They were not even 

in the budget last year. They are in this year, but we need to pursue those things. 

So I guess all I am saying is: It seems to me one of the responsibilities of the Department of Energy—and I am sure the Secretary is working that way—is to begin to try and develop a vision 

of where we need to go to deal with this question of providing the 

energy this country needs over the 10, 15 years in the future, and 

then to be able to set up a policy and see that we are moving in 

that direction. And the things we decide on intermediately will lead 

us to the goals that we have set. So we look forward to working 

with you and trying to move in that direction. And we are glad you 

are here. 

Ms. GRANT. Thank you, sir. 

The CHAIRMAN. Thank you very much, Senator. 

8

Your background and statement, as well as the information you 

supplied in response to our committee questionnaire demonstrates 

your considerable qualifications for this position. 

I do have a couple of questions related to associations that you 

and your husband have with government contractors, and your response to these would probably be best detailed in writing. So I ask 

that you agree to respond promptly to the written questions from 

me and other members following this hearing. Those responses will 

become part of this record as if they were given today. 

Now, frankly, I know you will want to answer them, but if you 

or anybody over at that agency you are going to work for would 

have the fancy idea that you should not answer them, then you understand it does not harm me; it just means you will not be confirmed. So that would not be a very nice position, so I hope you will 

answer them quickly. 

Ms. GRANT. Yes, sir. 

The CHAIRMAN. They are pretty routine when we know what you 

have done. We are not trying to pry or anything, so if you will get 

them done quickly, you will get confirmed quickly. 

Ms. GRANT. Yes, sir. 

The CHAIRMAN. And that means very quickly, so I call on you to 

do that. 

My observations have to do with the gigantic misnomer that exists when we call your Department, ‘‘The Department of Energy.’’ 

Everybody in the country, including the oldest relative you have 

here, would—when you asked them ‘‘What does the Department of 

Energy do,’’ he would say, ‘‘Well, they probably help the country 

produce energy.’’ Well, just so you will know, that is not what it 

is at all. 

It controls the nuclear weapons of the country. It has very little 

to do with the idea of being the Department of Energy, does it? It 

controls all kinds of peripheral issues that have little to do with energy. And over time, they have become part of what you have to 

work with. 

It will not be easy and it will not take just a few weeks. And 

there are some experts around that have done the financing. Do 

not hesitate to ask them. They have had a couple of pretty good 

ones over the past decade, not very many, but a couple. And you 

can ask us or you can find out who they are, if you want to ask 

what the kind of skills are that you ought to develop to do that job. 

I know you are all here for this big event, and I do not want to 

keep you any longer. I want to thank you, all of you, for showing 

your—by coming, you show us that her relatives think she is a 

great gal, a wonderful woman, and she ought to get this job. 

We have said ‘‘okay’’ to an awful lot of men and women that 

could not muster up this many friends and relatives if we gave 

them two different hearings in three days. They just do not have 

them, but it is good that you have shown us that you do. 

With that, awaiting your responses, which will be made a part 

of this record, we stand in recess. 

Ms. GRANT. Thank you. 

The CHAIRMAN. Thank you. 

[Whereupon, at 2:50 p.m., the hearing was adjourned.] 

(9)

APPENDIX 

RESPONSES TO ADDITIONAL QUESTIONS

DEPARTMENT OF ENERGY, 

OFFICE OF CONGRESSIONAL AND INTERGOVERNMENTAL AFFAIRS, 

Washington, DC, March 5, 2004. 

Hon. PETE DOMENICI, 

Chairman, Committee on Energy and Natural Resources, U.S. Senate, Washington, 

DC. 

Dear Mr. Chairman: Please find enclosed, responses to questions from the Senate 

Energy and Natural Resources Committee for Ms. Susan Johnson Grant, nominee 

to be Chief Financial Officer for the Department of Energy. 

If you have any questions or need further assistance, please do not hesitate to 

contact me. 

Sincerely, 

RICK A. DEARBORN, 

Assistant Secretary. 

[Enclosure] 

RESPONSE TO QUESTION FROM SENATOR DOMENICI

Question. You have noted in your Committee questionnaire that your spouse is 

an employee of a contractor who has considerable business dealings with the Department of Energy. Please describe more specifically your spouse’s position, including the extent to which his position may be associated with Department of Energy 

programs. 

Answer. Mr. Douglas Grant is a Department Manager and Vice President at 

SAIC. As a Department Manager, Mr. Grant oversees a 45-person organization with 

annual revenues of less than $7 million. SAIC is a company of over 42,000 employees with annual revenues over one billion dollars. Assistant Vice President is the 

lowest officer title in the company, followed by Vice President, Mr. Grant’s title. Assistant Vice President and Vice President titles are based upon revenue levels managed. There are over 1,500 Assistant Vice Presidents and Vice Presidents in the 

company. Corporate officer-ship, those levels distinctly above Assistant Vice President and Vice President, is comprised of over 500 senior managers spanning some 

25 different levels or categories. 

All contract work under Mr. Grant’s management supports the Air Force, especially the Deputy Chief of Staff for Air and Space Operations, Headquarters Air 

Force, located in the Pentagon. Mr. Grant has no contracts with DOE, nor does he 

or anyone under his management interface with any DOE organization in any advisory capacity. 

RESPONSES TO QUESTIONS FROM SENATOR SCHUMER

Question. Ms. Grant, as the Department of Energy’s Chief Financial Officer, I understand that a large part of your duties would relate to determining the proper 

sources and timing of funds to be reprogrammed within the Department of Energy 

to ensure the most efficient and effective execution of departmental programs. Could 

you please elaborate on what criteria you intend to use in evaluating reprogramming proposals? 

Answer. As directed by Public Laws and Congressional Reports, the Department 

will promptly inform the House and Senate Committees on Appropriations and relevant Authorization Committees when a change in program execution or funding is 

required during the fiscal year. Reallocations of new or prior year budget authority 

or prior year deobligations will be submitted to the Committees in writing and will 

10

not be implemented prior to approval by the Committees on Appropriations. Reprogramming requests will be considered when an unforeseen situation arises, and 

then only if delay of the project or activity until the next appropriations year would 

result in a detrimental impact to a Departmental program or priority. In addition, 

a reprogramming request may be provided to the Committees if a general reduction 

or prior year balance reduction unduly impacts a specific program, project or activity. 

Reprogramming’s would also be evaluated if the funding increase results in a significant cost savings to a program or activity. If a reprogramming intends to initiate 

new programs or to change program, project, or activity allocations that were denied, limited, reduced or increased by Congress, the Department would provide a 

proposal in advance to the Committees that fully justifies and explains the request. 

Question. Currently, Congressional earmarks and other factors have led to a drastic reduction in the Department of Energy’s budget for high temperature superconductivity (HTSC), which is a technology that promises to have tremendously 

positive impacts on system reliability, transmission capacity and the environment. 

The amount of funding provided for the development of this technology in FY04 has 

been reduced from approximately $48 million to less than $31 million. The cuts 

being faced by the program could lead to severe erosion of the knowledge base and 

infrastructure needed to bring this program to fruition. Would you be willing work 

with the Committee to identify and reprogram idle or low-priority funds that could 

be transferred to restore the HTSC program budget? 

Answer. I am willing to work with the Committees on the Office of Electricity 

Transmission and Distribution’s high temperature superconductivity funding situation.

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