Adobe Premiere Elements 12 - Manual (Page 295)

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Select the file in the panel and click the Delete icon.
Right-click/ctrl-click it in the Expert view timeline, and choose Delete. You can also delete by selecting the file and pressing the Delete key.
The file is deleted from the Elements Organizer, but it is not deleted from your hard disk.
Tip: To identify unused items in a project, see the Video Usage and Audio Usage columns in List view. To display these columns, scroll to
the right. A green check mark (list view) and a green dot (grid view) indicates that the asset is being used in the project.
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