DOE’
DOE's Office of Energy Efficiency and
Renewable Energy: FY2016 Appropriations
Fred Sissine
Specialist in Energy Policy
May 13, 2015
Congressional Research Service
7-5700
www.crs.gov
R44004
DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
Summary
Since 2005, the Energy and Water Development (E&W) appropriations bill has funded all
Department of Energy (DOE) programs, including those operated by the Office of Energy
Efficiency and Renewable Energy (EERE). That office conducts two types of programs: research
and development (R&D), usually conducted in partnership with private sector firms, and grant
funds that are distributed to state governments. EERE administers a wide range of R&D
programs, each with its own set of goals and objectives.
President Obama has declared energy efficiency and renewable energy to be a high priority,
stressing their importance to jobs, economic growth, and U.S. manufacturing competitiveness.
Efficiency and renewables are a focus of the President’s Climate Action Plan and comprise two of
the four building blocks of the Environmental Protection Agency’s proposed Clean Power Plan.
DOE’s FY2016 request seeks $2.723 billion, an increase of $809 million (42%) for EERE. That
would be about one-third of the total requested increase for DOE.
Nearly half of the DOE-proposed EERE increase would go to two R&D programs: manufacturing
($204 million) and vehicle technologies ($164 million). For manufacturing, most of the increase
($140 million) would support two new Clean Energy Manufacturing Institutes—part of the
President’s National Network for Manufacturing Innovation (NNMI). For vehicles, the increase
would mainly support the Electric Vehicle (EV) Everywhere Grand Challenge—with funds
spread over several subprograms.
The next largest increases would go to two more R&D programs: solar ($104 million) and
building technologies ($92 million). For solar, the increase would mainly support the SunShot
Initiative goal for utility-scale solar plants to reach 6 cents per kilowatt-hour (kwh) by 2020. For
buildings, the largest share of the increase would go to emerging technologies—sensors, grid
links, and air conditioning/refrigeration R&D. Most of the remaining increase would go to three
other R&D programs: geothermal ($41 million), wind ($39 million), and bioenergy ($21 million).
Also, $75 million would go to increases for three grant programs: weatherization ($35 million),
state energy ($20 million), and local energy ($20 million).
The FY2016 request identifies four new broad cross-cutting initiatives that span multiple EERE
programs—and programs under other Energy (Fossil and Nuclear) and Science offices:
Supercritical Carbon Dioxide, Subsurface Engineering, Energy-Water Nexus, and Cybersecurity.
Also, the EERE request continues a focus on five other key cross-cutting initiatives, established
in previous years: (1) Grid Modernization Initiative, (2) EV Everywhere Grand Challenge, (3)
SunShot Grand Challenge, (4) Clean Energy Manufacturing Initiative, and (5) Wide Bandgap
Semiconductors (solid state electronics).
The House Appropriations Committee recommends (H.R. 2028, H.Rept. 114-91) nearly $1.658
billion for EERE, a cut of $266 million (including use of $13.1 in prior year balances) from the
FY2015 funding level and a reduction of $1.065 billion from the FY2016 request. About half of
the proposed cuts would be applied to the Solar and Bioenergy programs. In floor action, the
House approved H.R. 2028 with seven amendments. Three amendments made small changes to
program funding, with a net increase of $11 million. Another three amendments prohibit the use
of funds to enforce certain efficiency standards and one amendment prohibits the use of funds for
the Cape Wind energy project.
Congressional Research Service
DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
At House and Senate oversight hearings, discussions revealed differing views about the requested
funding amount and the role of market barriers and national interests in EERE program design
and funding. The Administration has issued a veto threat, in part because it finds that the bill
would “underfund critical activities” under EERE.
Congressional Research Service
DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
Contents
Background ...................................................................................................................................... 1
Obama Administration Perspective and Goals .......................................................................... 1
Sustainable Economic Growth ............................................................................................ 1
Climate Protection ............................................................................................................... 2
Spending History in Context ..................................................................................................... 2
Recent Appropriations History .................................................................................................. 3
FY2016 Request Highlights............................................................................................................. 4
EERE Sectors and Programs ..................................................................................................... 5
Major Increases Requested ........................................................................................................ 5
Increases Ranked by Sector................................................................................................. 6
Increases Ranked by Program ............................................................................................. 6
Crosscut Initiatives .................................................................................................................... 7
EERE Funding Table ....................................................................................................................... 9
Congressional Action ..................................................................................................................... 11
House ....................................................................................................................................... 11
Appropriations................................................................................................................... 11
Oversight ........................................................................................................................... 14
Senate ...................................................................................................................................... 16
Appropriations................................................................................................................... 16
Oversight ........................................................................................................................... 17
Goals and Funding for Program Offices ........................................................................................ 17
Sustainable Transportation ...................................................................................................... 17
Hydrogen/Fuel Cell Program ............................................................................................ 17
Bioenergy Program ........................................................................................................... 18
Vehicle Technologies......................................................................................................... 18
Renewable Power .................................................................................................................... 19
Solar Energy ...................................................................................................................... 19
Wind Energy...................................................................................................................... 20
Geothermal Technologies .................................................................................................. 20
Water Power ...................................................................................................................... 21
Energy Efficiency .................................................................................................................... 23
Building Technologies....................................................................................................... 23
Advanced Manufacturing .................................................................................................. 23
Federal Energy Management Program (FEMP) ................................................................ 26
Grant Programs ........................................................................................................................ 26
Weatherization Grants ....................................................................................................... 26
State Energy Grants ........................................................................................................... 27
Local Energy Grants.......................................................................................................... 27
Administration ......................................................................................................................... 28
Program Direction ............................................................................................................. 28
Strategic Programs ............................................................................................................ 28
Facilities and Infrastructure ............................................................................................... 29
Additional Reports on EERE Programs, Funding, and Policy ...................................................... 29
Congressional Research Service
DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
Figures
Figure 1. DOE Energy Technology Share of Funding, Comparison over Three Periods ................ 3
Tables
Table 1. EERE Requests and Final Appropriations, FY2011-FY2016 ............................................ 4
Table 2. EERE Requested Increases, By Sector .............................................................................. 6
Table 3. EERE Major Program Increases from the FY2015 Appropriation to the FY2016
Request ......................................................................................................................................... 6
Table 4. Energy Efficiency and Renewable Energy Programs ...................................................... 10
Table 5. House Appropriations Committee Major Program Decreases from the FY2015
Appropriation to the FY2016 Recommendation ........................................................................ 12
Table 6. Water Power Technical Potentials for Sub-Programs ...................................................... 22
Contacts
Author Contact Information........................................................................................................... 29
Congressional Research Service
DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
Background
The Office of Energy Efficiency and Renewable Energy (EERE) of the Department of Energy
(DOE) invests in high-risk, potentially high-value research, development, and deployment
(RD&D) in the fields of energy efficiency and renewable energy technologies. EERE also
manages a portfolio of grant programs that support state and territorial governments. The office is
led by the Assistant Secretary of Energy Efficiency and Renewable Energy,1 who manages several
internal EERE offices and programs. EERE serves as the steward and primary client of the
National Renewable Energy Laboratory (NREL), which is located in Golden, CO. NREL is the
only national lab dedicated solely to RD&D on efficiency and renewables. In FY2015, the
amount of funding that EERE passed through to NREL was nearly double the amount that the
office provided to all other national labs combined.
Obama Administration Perspective and Goals
President Obama has declared energy efficiency and renewable energy to be high priorities,
stressing their importance to jobs, economic growth, and U.S. manufacturing competitiveness.
The 2013 Economic
February 10, 2016
(R44004)
Jump to Main Text of Report
Summary
Since 2005, the Energy and Water Development (E&W) appropriations bill has funded all Department of Energy (DOE) programs, including those operated by the Office of Energy Efficiency and Renewable Energy (EERE). That office conducts two types of programs: research and development (R&D), usually conducted in partnership with private sector firms, and grant funds that are distributed to state governments. EERE administers a wide range of R&D programs, each with its own set of goals and objectives.
President Obama has declared energy efficiency and renewable energy to be a high priority, stressing their importance to jobs, economic growth, and U.S. manufacturing competitiveness. Also, efficiency and renewables are a focus of the President's Climate Action Plan and both are key strategies for the Environmental Protection Agency's Clean Power Plan regulation.
DOE's FY2016 request for EERE sought $2.723 billion, an increase of $809 million (42%). Nearly half of the proposed EERE increase would have gone to two R&D programs: manufacturing ($204 million) and vehicle technologies ($164 million). For manufacturing, most of the increase ($140 million) would have supported two new Clean Energy Manufacturing Institutes—part of the President's National Network for Manufacturing Innovation (NNMI). For vehicles, the increase would have mainly supported the Electric Vehicle (EV) Everywhere Grand Challenge—with funds spread over several subprograms.
The next largest requested increases would have gone to two more R&D programs: solar ($104 million) and building technologies ($92 million). Most of the remaining increase would have gone to three other R&D programs: geothermal ($41 million), wind ($39 million), and bioenergy ($21 million). Also, $75 million would have gone to increases for three grant programs: weatherization ($35 million), state energy ($20 million), and local energy ($20 million).
At several House and Senate appropriations and oversight hearings, testimony and Member questions revealed differing views about the requested funding amount and the role of market barriers and national interests in EERE program design and funding.
For the EERE portion of the FY2016 E&W bill (H.R. 2028), the House approved $1.652 billion (includes a $17 million rescission of prior year funds and $11 million added by non-program-specific floor amendments) and the Senate Appropriations Committee approved $1.933 billion (includes a $17 million rescission). However, the Administration issued a veto threat, in part because it found that H.R. 2028 would "underfund critical activities" at EERE. Ultimately, E&W appropriations appeared as Division D of the Consolidated Appropriations Bill (H.R. 2029). The bill was enacted as P.L. 114-113. The law provided $2.069 billion for EERE, which was $654 million below the request, but $145 million above the FY2015 level. Specific program increases included Vehicles ($30 million), Manufacturing ($29 million), Buildings ($29 million), Weatherization Grants ($22 million), Geothermal ($16 million), Water ($9 million), and Solar ($9 million). The Wind program was cut by nearly $12 million.
DOE's Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
Organization and Strategy
The Office of Energy Efficiency and Renewable Energy (EERE) of the Department of Energy (DOE) invests in high-risk, potentially high-value research, development, and deployment (RD&D) in the fields of energy efficiency and renewable energy technologies. EERE also manages a portfolio of grant programs that support state and territorial governments. The office is led by the Assistant Secretary of Energy Efficiency and Renewable Energy,1 who manages several internal EERE offices and programs. EERE serves as the steward and primary client of the National Renewable Energy Laboratory (NREL), which is located in Golden, CO. NREL is the only national lab dedicated solely to RD&D on efficiency and renewables. In FY2015, the amount of funding that EERE passed through to NREL was nearly double the amount that the office provided to all other national labs combined.
EERE Sectors and Programs
DOE has organized EERE into four functional groups, or sector offices: sustainable transportation, renewable power, energy efficiency, and corporate management.2 Each sector—and its major component programs—are identified below:
- Sustainable Transportation R&D is made up of three program offices. The Vehicle Technologies office focuses mainly on the development of electric vehicles and on technologies to improve the efficiency and fuel economy of combustion engines of cars and trucks. The Bioenergy office addresses biomass resources and technologies for liquid fuels that can displace petroleum use. The Hydrogen/Fuel Cells office targets the energy efficiency of transportation fuel cells that can use natural gas and/or hydrogen gas as a fuel.
- Renewable Power R&D is made up of four program offices. The Solar Energy office develops electric power systems for buildings and utility-scale installations. The Wind Energy office focuses on hardware for wind farms. The Geothermal Energy office explores technology to generate power from geological resources. Water Power technologies include new hydropower development strategies and hardware for wave, currents (river and ocean), and tidal energy resources.
- Energy Efficiency R&D is made up of three program offices. The Advanced Manufacturing Office (AMO) anchors the Clean Energy Manufacturing Initiative and provides technical assistance for industry. The Building Technologies office addresses building design (codes), component innovation, and equipment standards. The Federal Energy Management Program (FEMP) helps federal agencies with project financing, technical guidance, and planning assistance.
- Corporate Management is made up of three activities. Program Management is the overall administrative arm that manages all EERE programs. Strategic Programs (formerly Program Support) serves an integrative and crosscutting role for EERE. The Facilities and Infrastructure program mainly addresses the development and maintenance of the facilities that make up the National Renewable Energy Laboratory (NREL).
Strategic Plan
EERE's vision aims to promote "clean, affordable, and secure energy." Based on its vision, EERE states that its mission is "... to create and sustain American leadership in the transition to a global clean energy economy."3 To attain its vision and fulfill its mission, EERE has devised several strategic goals. Some of the goals are sector specific and some are crosscutting:
- 1. Accelerate development and adoption of sustainable transportation technologies.
- 2. Increase the generation of electric power from renewable sources.
- 3. Improve the energy efficiency of homes, buildings, and industries.
- 4. Stimulate the growth of a thriving domestic clean energy manufacturing industry.
- 5. Help integrate clean energy into a reliable, resilient, and efficient electricity grid.
- 6. Lead efforts to improve federal sustainability and use of clean energy solutions.4
For each strategic goal, strategic objectives and success indicators were devised as metrics to assess the progress of activities. Further, Multi-Year Program Plans (MYPPs) are developed to provide more detailed strategies for each EERE technology office (e.g., Buildings, Vehicles, Solar Energy). EERE's strategic planning process follows a three-phase innovation model that addresses applied research, development and demonstration, and market barriers.5
Administration Perspective and Goals
President Obama has declared energy efficiency and renewable energy to be high priorities, stressing their importance to jobs, economic growth, and U.S. manufacturing competitiveness. The 2013 Economic Report of the President said that
“"President Obama has set a goal of once
again doubling generation from wind, solar, and geothermal sources by 2020.
”" Other key
Administration goals that directly affect the EERE agenda include leading the world in clean
energy technologies, doubling energy productivity by 2030 (relative to 2010), making
nonresidentialnon-residential buildings 20% more efficient by 2020, attaining 80% clean energy power generation
by 2035 (includes nuclear and efficient gas), reducing oil imports relative to the 2008 level by
one-half by 2020, and cutting greenhouse gases 17% below the 2005 level by 2020.
2
6
Sustainable Economic Growth
The
2015 Economic2015 Economic Report of the President states that the President
’'s strategy for sustainable
economic growth addresses three strategic elements: economic growth and job creation,
improving energy security, and curbing global climate change.
37 Further, it observes that the
President’ President's Climate Action Plan
“"includes a broad range of actions, from providing research,
demonstration, and deployment funding for new energy technologies to the direct regulation of
carbon emissions under the Clean Air Act.
”4
For “infant”"8
For "infant" industries, the report finds that, due to difficulties for a private company to capture
all the economic benefits of innovation, there tends to be underinvestment in clean energy
1
The Department of Energy Organization Act of 1977 (P.L. 95-91) defined the organizational structure and
administrative functions for DOE. Section 203 established eight unspecified Assistant Secretary positions that report to
the Secretary of Energy. The law directs the Secretary to assign a broad range of duties or “functions” to the Assistant
Secretaries. Those functions include energy research, development, and applications for renewable energy and energy
efficiency.
2
DOE, Office of Energy Efficiency and Renewable Energy FY2016 Budget Overview, March 2015, http://energy.gov/
sites/prod/files/2015/03/f20/FY%202016%20Transportation%20Webinar%20%20Presentation.pdf.
3
The White House, Council of Economic Advisers, 2015 Economic Report of the President, Chapter 6 (The Energy
Revolution), p. 242, https://www.whitehouse.gov/administration/eop/cea/economic-report-of-the-President/2015.
Natural gas units accounted for most of the remainder.
4
2015 Economic Report, p. 276.
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DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
all the economic benefits of innovation, there tends to be underinvestment in clean energy technologies, such as wind and solar. As a result,
“"the Administration supports research and early
deployment projects aimed at bringing down the ultimate market price of immature renewable
energy technologies.
”5[Where does the quote end?]
Climate Protection
"9
Climate Protection
The 2015 Economic Report of the President concludes that
“"U.S. leadership is vital to the success
of international negotiations to set meaningful [carbon] reduction goals.... Through low-carbon
technologies developed and demonstrated in the United States ... this Nation can help the rest of
the world reduce its dependence on high-carbon fuels.
”6
"10
Citing authority granted by the Clean Air Act, the Environmental Protection Agency (EPA) has
issued a
proposed rulemakingfinal rule known as the Clean Power Plan (CPP). The CPP aims to reduce
carbon emissions from the nation
’'s fleet of electric power plants. The
CPP could begin to take
effect in 2015.7 Energy efficiency and renewable energy are two of EPA’s four “building blocks”
rule directs states to submit implementation plans by September 6, 2016, unless granted an extension to 2018. The state plans must comply with CPP targets set to begin in 2022.11 Renewable energy is one of EPA's recommended key strategies designed to enable states to comply with the rule
’'s proposed carbon emission goals.
8
12 Implementation of the CPP could increase the demand for EERE technologies. Such a boost to
renewables and efficiency could likely take several forms, including development of renewables
capacity and energy storage, transmission infrastructure and grid integration, and implementation
of more energy-efficient equipment.
Program Funding History
Spending History in Context
From FY1948 through FY1977 the federal government provided an extensive amount of R&D
support for fossil energy and nuclear power technologies. The energy crises of the 1970s spurred
the federal government to expand its R&D programs to include renewable
energy9energy13 and energy
efficiency technologies. In real (constant dollar) terms, funding support for all four of the main
energy technologies skyrocketed during the 1970s to a combined peak in FY1979. Funding then
dropped steadily, reaching a
plateaubottom during the late 1990s. Since then, funding has increased
gradually—except that the Recovery Act provided a one-year spike in FY2009.
10 14 Figure 1
presents a
bar chart showing the relative shares of funding for the four types of energy
technologies over three time periods:
6768 years,
3738 years, and 10 years. EERE funding is portrayed
by the top two portions of each bar in the chart: one for renewables R&D and one for energy
efficiency R&D.
5
2015 Economic Report, p. 284.
2015 Economic Report, p. 288.
7
For more about the background and status of the CPP, see CRS Report R43572, EPA’s Proposed Greenhouse Gas
Regulations for Existing Power Plants: Frequently Asked Questions, by James E. McCarthy et al.
8
For more about the CPP “building blocks” involving renewables and energy efficiency, see CRS Report R43652,
State CO2 Emission Rate Goals in EPA’s Proposed Rule for Existing Power Plants, by Jonathan L. Ramseur.
9
Includes wind, solar, biomass, geothermal, and water (hydropower, marine, and hydrokinetic) energy technologies.
10
More details about DOE—and earlier (pre-1978)—spending for R&D on energy technologies are available in CRS
Report RS22858, Renewable Energy R&D Funding History: A Comparison with Funding for Nuclear Energy, Fossil
Energy, and Energy Efficiency R&D, by Fred Sissine.
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DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
by the top two portions of each bar in the chart: one for renewables R&D and one for energy efficiency R&D.
Figure 1. DOE Energy Technology Share of Funding, Comparison over Three Periods
(Chart taken from CRS Report RS22858)
Source: DOE
Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget Requests
(several years); DOE (Pacific Northwest Laboratory), An Analysis of Federal Incentives Used to Stimulate Energy
Production Production, 1980; DOE Conservation and Renewable Energy Base Table. February 1990. Deflator
Source: The
source: The Budget for Fiscal Year
20152016, Historical Tables, Table 10.1.
Notes:
Note: The portion shown for Nuclear Energy includes funding for both nuclear fission and nuclear fusion.
Recent Appropriations History
Since 2005, the annual Energy and Water Development (E&W) appropriations
bill11bill15 has funded
all DOE programs, including those operated by the Office of Energy Efficiency and Renewable
Energy (EERE).
1216 That office conducts two general types of programs: research and development
(R&D), often conducted in partnership with private sector firms, and distribution of grant funds to
state, territorial, and tribal governments. EERE administers a wide range of R&D programs, each
with its own set of goals and objectives.
11
For an overview of the FY2016 E&W appropriations process, see CRS Report R43966, Energy and Water
Development: FY2016 Appropriations, by Mark Holt.
12
Prior to 2005, DOE programs were supported partly by the E&W bill and partly by the Interior appropriations bill.
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DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
with its own set of goals and objectives.
Since FY2011, DOE has requested sizeable increases in spending each year—but Congress has
generally provided funding for EERE programs at less than requested levels. Table 1, below,
shows the recent pattern of EERE requests and final appropriation levels.
Table 1. EERE Requests and Final Appropriations, FY2011-FY2016
($ billions, current dollars)
Fiscal Year
Request
Final Appropriation
FY2011
$2.4
$1.8
FY2012
$3.2
$1.8
FY2013
$2.3
$1.7
FY2014
$2.8
$1.9
FY2015
$2.3
$1.9
FY2016
$2.7
—-
Source: DOE Budget Requests, FY2011 through FY2016.
For FY2015, DOE’s request for EERE was $2.3 billion, which would have increased funding
relative to the FY2014 level by about $416 million, or nearly 22%.13 The House approved $1.8
billion, and the Senate Committee on Appropriations Subcommittee on Energy and Water
($ billions, current dollars)
|
Fiscal Year
|
Request
|
Final Appropriation
|
|
FY2011
|
$2.4
|
$1.8
|
|
FY2012
|
$3.2
|
$1.8
|
|
FY2013
|
$2.3
|
$1.7
|
|
FY2014
|
$2.8
|
$1.9
|
|
FY2015
|
$2.3
|
$1.9
|
|
FY2016
|
$2.7
|
$2.1
|
Source: DOE Budget Requests, FY2011 through FY2016.
For FY2015, DOE's request for EERE was $2.3 billion, which would have increased funding relative to the FY2014 level by about $416 million, or nearly 22%.17 The House approved $1.8 billion, and the Senate Committee on Appropriations Subcommittee on Energy and Water Development recommended $2.1 billion. The enacted FY2015 measure (P.L. 113-235, Division
D) provided $1.9 billion for EERE.
For FY2016, DOE requests about $2.7 billion for EERE. The draft bill issued by the House
Appropriations Committee’s Subcommittee on Energy and Water Development recommends less
than $1.7 billion.
FY2016 Request Highlights
DOE released its FY2016 budget request on February 2, 2015.14 D) provided $1.9 billion for EERE.
FY2016 Highlights
This section presents the key
EERE program funding increases requested and describes some highlights for each of those
programs. EERE Principal Deputy Assistant Secretary Mike Carr presented a summary of the
EERE request at a February 25, 2015, briefing for congressional staff sponsored by the
Environmental and Energy Study Institute (EESI).15
13
This comparison was calculated on current dollars for the two fiscal years, not constant (inflation-adjusted) dollars.
A video replay of Secretary Moniz’s verbal presentation of the DOE request is available at http://energy.gov/articles/
energy-department-presents-fy16-budget-request. The potion on energy programs, including EERE, begins at about
nine minutes into the video recording. Also, the printed text of the Secretary’s verbal presentation is available at
http://energy.gov/articles/secretary-monizs-remarks-presenting-department-s-fy-2016-budget-request-delivered.
15
A video replay of Mike Carr’s presentation at the EESI briefing is available at http://www.eesi.org/briefings/view/
022515budget.
14
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DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
EERE Sectors and Programs
DOE has organized EERE into four functional groups, or sectors: sustainable transportation,
renewable power, energy efficiency, and corporate management. Each sector—and its major
component programs—are identified below:
•
Sustainable Transportation R&D is made up of three program offices. The
Vehicle Technologies office focuses mainly on the development of electric
vehicles and on technologies to improve the efficiency and fuel economy of
combustion engines of cars and trucks. The Bioenergy office addresses biomass
resources and technologies for liquid fuels that can displace petroleum use. The
Hydrogen/Fuel Cells office targets the energy efficiency of transportation fuel
cells that can use natural gas and/or hydrogen gas as a fuel.
•
Renewable Power R&D is made up of four program offices. The Solar Energy
office develops electric power systems for buildings and utility-scale
installations. The Wind Energy office focuses on hardware for wind farms. The
Geothermal Energy office explores technology to generate power from
geological resources. Water Power technologies include new hydropower
development strategies and hardware for wave, currents (river and ocean), and
tidal energy resources.
•
Energy Efficiency R&D is made up of three program offices. The Advanced
Manufacturing Office (AMO) anchors the Clean Energy Manufacturing Initiative
and provides technical assistance for industry. The Building Technologies office
addresses building design (codes), component innovation, and equipment
standards. The Federal Energy Management Program (FEMP) helps federal
agencies with project financing, technical guidance, and planning assistance.
•
Corporate Management is made up of three activities. Program Management is
the overall administrative arm that manages all EERE programs. Strategic
Programs (formerly Program Support) serves an integrative and crosscutting role
for EERE. The Facilities and Infrastructure program mainly addresses the
development and maintenance of the facilities that make up the National
Renewable Energy Laboratory (NREL).
Major Increases Requested
The FY2016 request seeks a total increase of $2.5 billion (9%) for DOE and an increase of $809
million (42%) for EERE—which would be about one-third of the total DOE increase. At the same
time, the Administration is seeking a revenue offset derived from a proposal to repeal about $4
billion in fossil fuel tax incentives.16
16
The Federal Budget Request for FY2016 would repeal $4 billion in FY2016 fossil fuel tax incentives. This repeal is
part of a longer-term proposal to eliminate fossil fuel incentives, which President Obama promised at the G20 Summit
held in Brisbane, Australia, November 15-16, 2014. For the annual dollar estimates of proposed cuts to fossil energy
incentives see U.S. Department of the Treasury, General Explanations of the Administration’s Fiscal Year 2016
Revenue Proposals, Table 2.
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DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
Increases Ranked by Sector
Regarding the changes proposed for FY2016, Table 2 shows the requested increases for each of
the three functional sectors. Clearly, the largest dollar increase is sought for energy efficiency.
The following section provides a further breakdown for the programs under the sectors.
Table 2. EERE Requested Increases, By Sector
($ millions, current dollars)
Sector
FY2015
FY2016 Request
Increase
Percent Increase
Energy Efficiency
$642
$1,029
$388
60%
Sustainable
Transportation
$602
$793
$191
32%
Renewable Power
$456
$645
$189
42%
Corporate
Management
$237
$255
$18
8%
Source: DOE, FY2016 Budget Request, Vol. 3.
Notes: Figures for Energy Efficiency include both R&D and grants.
Increases Ranked by Program
Table 3 shows that the largest requested EERE increases are for manufacturing and vehicles:
•
Manufacturing. Most of the increase, $140 million, would support two new
Clean Energy Manufacturing Initiatives (CEMIs)—part of the President’s
National Network for Manufacturing Innovation (NNMI).
•
Vehicles. The increase would mainly support the EV Everywhere Grand
Challenge—with funds spread over several subprograms.
Table 3. EERE Major Program Increases from the FY2015 Appropriation to the
FY2016 Request
($ millions, current dollars)
Program
Increase
Percent Increase
Manufacturing
$204
102%
Vehicles
$164
59%
Solar
$104
45%
Buildings
$92
54%
Geothermal
$41
75%
Wind
$39
36%
Bioenergy
$21
9%
$35
18%
Research & Development
Grant Programs
Weatherization
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DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
Program
Increase
Percent Increase
State Energy
$20
40%
Local Energy
$20
New Program
Source: DOE FY2016 Budget Request.
Five other sizable increases are sought for EERE R&D programs:
•
Solar. The $104 million increase would mainly support the SunShot Initiative
goal for utility solar plants to reach 6 cents/kilowatt hour (kwh) by 2020.
•
Buildings. The largest share of the $92 million increase would go to emerging
technologies—sensors, grid links, and air conditioning R&D.
•
Geothermal. The $41 million increase would support a production cost goal of
10 cents/kwh by 2030, mainly by adapting sensing, drilling, and fracking
technologies for “blind” resources and deep reservoirs.
•
Wind. The largest share of the $39 million increase would go to new technology.
Also, a sizable increase would go to mitigate wildlife impacts.
•
Bioenergy. An increase of $21 million would support pilot biorefinery projects
and efforts to raise algae productivity.
Three notable increases are sought for grant programs. Table 3 lists those requested increases,
and ranks them by amount.
•
Weatherization. The $35 million increase would raise the number of retrofits
and support new test models for multifamily buildings.
•
State Energy. Most of the $20 million increase would support a competitive
grant program for innovation and best practices.
•
Local Energy. A new $20 million program of competitive grants would promote
best practices.
Crosscut Initiatives
The FY2016 request identifies four new broad initiatives that cut across multiple EERE
programs—and across programs under other energy (Fossil and Nuclear) offices and the Office of
Science:17
•
Supercritical Carbon Dioxide (sCO2). The aim is to use sCO2 as the working
fluid in power production cycles. Demonstration of feasibility could yield
cleaner, more efficient, and less costly power production for fossil, nuclear,
concentrating solar, geothermal, and industrial waste heat recovery
technologies.18
17
DOE, FY2016 Budget Request, vol. 3, pp. 15-16, http://energy.gov/sites/prod/files/2015/02/f19/
FY2016BudgetVolume3_7.pdf. Also, some cross-cutting initiatives involve coordination with the Advanced Research
Projects Agency-Energy (ARPA-E) and other federal agencies.
18
At high pressure, CO2 has a higher density than steam, giving it a high power density. This crosscut involves $44
(continued...)
Congressional Research Service
7
DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
•
Environmental and Energy Study Institute (EESI).18
Summary
DOE presented its FY2016 budget request on February 2, 2015.19 The request for EERE was about $2.7 billion, which would have been a nearly $809 million, or 42%, increase relative to the FY2015 level. The EERE increase was about one-third of the total requested DOE increase. To balance the requested increase for DOE, the Administration sought a revenue offset derived from a proposal to repeal about $4 billion in fossil fuel tax incentives.20
Key Requested Increases
As part of that requested overall increase, DOE sought the largest increases for manufacturing and vehicles, sought significant increases for several other programs, and proposed to create a new local grants program.
- Manufacturing. Most of the requested increase, $140 million, would have supported two new Clean Energy Manufacturing Initiatives (CEMIs)—part of the President's National Network for Manufacturing Innovation (NNMI).
- Vehicles. The $164 milllion requested increase would have mainly supported the EV Everywhere Grand Challenge—with funds spread over several subprograms.
Five other sizable increases are sought for EERE R&D programs:
- Solar. The $104 million increase would have mainly supported the SunShot Initiative goal for utility solar plants to reach 6 cents/kilowatt hour (kwh) by 2020.
- Buildings. The largest share of the $92 million increase would have gone to emerging technologies—sensors, grid links, and air conditioning R&D.
- Geothermal. The $41 million increase would have supported a production cost goal of 10 cents/kwh by 2030, mainly by adapting sensing, drilling, and fracking technologies for "blind" resources and deep reservoirs.
- Wind. The largest share of the $39 million increase would have gone to new technology. Also, a sizable increase would have gone to mitigate wildlife impacts.
- Bioenergy. An increase of $21 million would have supported pilot biorefinery projects and efforts to raise algae productivity.
Three notable increases were sought for grant programs.
- Weatherization. The $35 million requested increase would have raised the number of retrofits and supported new test models for multifamily buildings.
- State Energy. Most of the $20 million increase requested would have supported a competitive grant program for innovation and best practices.
- Local Energy. A new $20 million program of competitive grants would have promoted best practices.
Main Actions
The House Committee on Appropriations reported (H.R. 2028, H.Rept. 114-91) the Energy and Water Development (E&W) Appropriations Bill, 2016 with a recommendation of about $1.640 billion (includes a $17 million rescission) for EERE. House floor action increased the amount by $11 million to $1.652 billion.21 The House recommended level drew a veto threat from the Administration. Subsequently, the Senate Committee on Appropriations (S.Rept. 114-54) recommended $1.933 billion (includes a $17 million rescission).22 Action on H.R. 2028 was suspended, as Congress adopted two omnibus continuing resolutions and pursued lengthy negotiations over final FY2016 appropriations. Ultimately, the E&W bill was incorporated as Division D of the Consolidated Appropriations Act, FY2016 (H.R. 2029). The final enacted version of H.R. 2029 (P.L. 114-113, Division D) provided nearly $2.1 billion for EERE.23
Congressional Action
After the Administration issued its FY2016 budget request, Congress held a number of DOE oversight and appropriations hearings. As noted above, further actions were taken in the House and Senate on DOE funding recommendations in the E&W bill, H.R. 2028. Late in the first session, after lengthy negotiations, the E&W bill was incorporated into H.R. 2029.
The various steps of the congressional process for the FY2016 E&W appropriations are outlined in Table 2.
Table 2. EERE FY2016 Appropriations Chronology
(Highlights of Committee and Floor Action, with Administration responses.)
|
Date
|
Action
|
|
February 2, 2015
|
DOE issued FY2016 budget request.
|
|
February 11, 2015
|
House Energy and Commerce Committee's Subcommittee on Energy and Power held a hearing on the DOE request.
|
|
February 12, 2015
|
Senate Committee on Energy and Natural Resources (SENR) held a hearing on the DOE request.
|
|
February 26, 2015
|
House Appropriations Committee's Subcommittee on Energy and Water Appropriations held a hearing on the DOE request.
|
|
March 25, 2015
|
Senate Appropriations Committee's Subcommittee on Energy and Water Appropriations held a hearing on the DOE request.
|
|
April 13, 2015
|
House Appropriations Committee's Subcommittee on Energy and Water Appropriations released a draft report with recommended funding for FY2016 E&W appropriations bill.
|
|
April 15, 2015
|
House Appropriations Committee's Subcommittee on Energy and Water Appropriations held a subcommittee markup.
|
|
April 21, 2015
|
House Appropriations Committee issued draft report on FY2016 E&W appropriations bill with recommended funding.
|
|
April 21, 2015
|
Office of Management and Budget (OMB) issued a letter to the House Appropriations Committee that expressed the Administration's concerns with the draft E&W appropriations bill.
|
|
April 22, 2015
|
House Appropriations Committee held a full committee markup. Several amendments were adopted, none of which affected the provisions for EERE.
|
|
April 24, 2015
|
House Appropriations Committee issued the E&W appropriations bill (H.R. 2028) and final report (H.Rept. 114-91) with recommended funding for FY2016 E&W appropriations.
|
|
April 28, 2015
|
OMB issued a Statement of Administration Policy that strongly opposed House passage of H.R. 2028.
|
|
May 1, 2015
|
House approved H.R. 2028. Several amendments to EERE programs were adopted, some of which made small changes to program funding.
|
|
May 21, 2015
|
Senate Appropriations Committee reported (S.Rept. 114-54) its recommendations for H.R. 2028.
|
|
June 2, 2015
|
OMB issued a letter to the Senate Appropriations Committee that expressed the Administration's concerns with the Senate version of H.R. 2028.
|
|
December 17, 2015
|
House approved H.R. 2029, Consolidated Appropriations Act, 2016. A modified version of the E&W appropriations bill (H.R. 2028) was included as Division D. The explanatory statement on H.R. 2029 was printed in Congressional Record.
|
|
December 17, 2015
|
Senate approved H.R. 2029.
|
|
December 18, 2015
|
President signed H.R. 2029 into law as P.L. 114-113. The E&W bill was incorporated as Division D.
|
Source: Multiple sources were used.
Funding Increases
This section presents the key EERE program funding increases enacted and describes some highlights for each of those programs. Several programs received a significant funding increase for FY2016. Table 3 and Table 4 show those increases in dollar amounts and percentages, relative to FY2015.
Increases Ranked by Sector
Regarding the changes proposed for FY2016, Table 3 shows the enacted increases for each of the three functional sectors. The largest dollar and percentage increase was in the energy efficiency sector. The following section provides a further breakdown for the programs under the sectors.
Table 3. EERE Sector Increases, in Rank Order
($ millions, FY2016–FY2015 difference)
|
Sector
|
FY2015
|
FY2016 Final
|
Increase
|
Percent Increase
|
|
Energy Efficiency
|
$642
|
$721
|
$79
|
12%
|
|
Sustainable Transportation
|
$602
|
$636
|
$34
|
6%
|
|
Renewable Power
|
$456
|
$478
|
$22
|
5%
|
|
Corporate Management
|
$237
|
$238
|
$1
|
0.4%
|
Source: Congressional Record, Explanatory Statement on Consolidated Appropriations Act, 2016, December 17, 2015, pp. H10108-H10109, https://www.congress.gov/crec/2015/12/17/CREC-2015-12-17-bk2.pdf.
Note: Figures for Energy Efficiency include both R&D and grants.
Increases Ranked by Program
Table 4 shows that the largest EERE increases are for manufacturing and vehicles.
Table 4. EERE Program Increases, in Rank Order
($ millions, FY2016–FY2015 difference)
|
Program
|
Increase
|
Percent Increase
|
|
Research and Development
|
|
Vehicles
|
$30
|
11%
|
|
Manufacturing
|
$29
|
14%
|
|
Buildings
|
$29
|
17%
|
|
Geothermal
|
$16
|
29%
|
|
Water
|
$9
|
15%
|
|
Solar
|
$9
|
4%
|
|
Grant Programs
|
|
Weatherization
|
$22
|
9%
|
Source: Congressional Record, Explanatory Statement on Consolidated Appropriations Act, 2016, December 17, 2015, pp. H10108-H10109, https://www.congress.gov/crec/2015/12/17/CREC-2015-12-17-bk2.pdf.
Decrease for Wind Energy
Wind Energy is the only program slated to be cut, by nearly $12 million.
Cross-Cutting Initiatives
The FY2016 request also sought to continue crosscutting programs that coordinate across the Department and seek to tap DOE's full capability to effectively and efficiently address national energy, environmental, and national security challenges. The request identified four new broad initiatives that cut across multiple EERE programs—and across programs under other energy (Fossil and Nuclear) offices and the Office of Science:24
Supercritical Carbon Dioxide (sCO2). The aim is to use sCO2 as the working fluid in power production cycles. Demonstration of feasibility could yield cleaner, more efficient, and less costly power production for fossil, nuclear, concentrating solar, geothermal, and industrial waste heat recovery technologies.25
Subsurface Engineering (SubTER). This activity aims to improve technologies
for accessing underground fossil and geothermal resources, while exploring ways
to store
CO2CO2, fluids, and waste products.
19
•
26
Energy-Water Nexus. This collaboration is focused on technology and analysis
to improve the resilience of coupled energy-water systems.
20
•
27
Cybersecurity. This crosscut aims to protect DOE facilities from cyber threats,
bolster the federal government
’'s ability to address cyber threats, and improve
cybersecurity for the industrial subsectors of electric power, oil, and natural gas.
21
28Also, the request continues a focus on five other key EERE cross-cutting initiatives, established
in previous years:
(1) Grid Modernization Initiative. Under this initiative, launched in 2012,
2229 EERE
’'s vehicles,
solar, and buildings programs would work in coordination with DOE
’'s Grid Tech
Team23 to
Team30 to address electric grid integration barriers and opportunities associated with variable, distributed
renewable energy generators, electric vehicle charging, and building efficiency and controls.
Thus, EERE would coordinate with DOE
’'s Office of Electricity Delivery and Energy Reliability
(OE).
(2) EV Everywhere Grand Challenge. This DOE-wide initiative aims to make technology
breakthroughs that would enable the United States, by 2022, to become the first country in the
world to invent and produce plug-in electric vehicles that are as affordable and convenient as
gasoline-powered vehicles.
24
31
(3) SunShot Grand Challenge. This DOE-wide initiative seeks to achieve directly
costcompetitive solar power by 2020.25
(...continued)
million for a 10-mw demonstration project. For details, see DOE, Project Profile: 10-Megawatt Supercritical Carbon
Dioxide Turbine, http://energy.gov/eere/sunshot/project-profile-10-megawatt-supercritical-carbon-dioxide-turbine.
19
For more about SubTER, see DOE, DOE Crosscutting Subsurface Initiative, http://www.energy.gov/sites/prod/files/
2014/12/f19/DOE-SubTER%20AGU%20town%20hall.pdf.
20
For more details see DOE, The Water-Energy Nexus: Challenges and Opportunities, http://energy.gov/downloads/
water-energy-nexus-challenges-and-opportunities.
21
This crosscut is led by the Office of Electricity Delivery and Energy Reliability (OE). More details at DOE,
Cybersecurity, http://energy.gov/oe/services/cybersecurity.
22
The Administration proposed the Grid Modernization Initiative in 2011 (http://www.whitehouse.gov/sites/default/
files/microsites/ostp/smart-grid-press-release-6-13-2011.pdf). The Energy Independence and Security Act (EISA, Title
13) made OE the lead DOE office for this initiative (http://energy.gov/oe/services/technology-development/smart-grid).
The EERE role is described in a 2014 plan http://www.nrel.gov/esi/pdfs/
eere_grid_integration_multi_year_program_plan.pdf.
23
DOE created the Grid Tech Team to develop a stronger and more extensive network of public-private partnerships to
ease the transition to a more modern grid. DOE, EDER, DOE Grid Tech Team, http://energy.gov/oe/services/doe-gridtech-team.
24
For more details, see EV Everywhere: Grand Challenge Blueprint, January 2013, http://energy.gov/sites/prod/files/
2014/02/f8/eveverywhere_blueprint.pdf.
25
For more about SunShot, see (1) this report’s section on Solar Energy, (2) p. 6 of the budget request for FY2014 at
http://energy.gov/sites/prod/files/2013/04/f0/Volume3_1.pdf, and (3) DOE’s SunShot program site at http://energy.gov/
eere/sunshot/sunshot-initiative.
Congressional Research Service
8
DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
cost-competitive solar power by 2020.32
(4) Clean Energy Manufacturing Initiative. Launched in 2014, this EERE initiative aims to
dramatically improve U.S. competitiveness in the manufacture of clean energy products (such as
solar modules, LED lights,
2633 batteries, and wind blades) and to increase energy productivity as a
means to strengthen U.S. competitiveness across multiple manufacturing industries.
27
34
(5) Wide Bandgap (WBG) Semiconductors for Clean Energy Initiative. Wide bandgap
semiconductor technology—a branch of solid state power electronics—was initially developed
for military and solid-state lighting uses. DOE contends it is a key next-generation platform for
semiconductor devices with the potential for developing high-power-conversion electronics that
are much more compact, more energy efficient, and able to operate at much higher temperatures
and voltages than existing commercial technology. DOE says that this
“revolutionary”"revolutionary" technology
could be a platform for the next generation of electric vehicle drivetrains, solar inverters,
highefficiencyhigh-efficiency motors, solid-state transformers for the grid, and many other critical, clean energy
applications.
2835 WBG semiconductors are one focus of DOE
’'s Next Generation Power Electronics
Manufacturing Innovation Institute.
29
36
EERE Funding Table
EERE has 13 program offices and three administrative offices. Each program office has a set of
goals and funding needs. DOE
’'s FY2016 request groups the 13 program offices under four
separate functional themes:
1. Sustainable Transportation, which includes the Vehicles, Bioenergy, and
Hydrogen/Fuel Cell programs.
2. Renewable Electricity Generation, which includes Solar, Geothermal, Wind, and
Water programs.
3. Energy Efficiency, which includes Manufacturing, Buildings, the Federal Energy
Management Program (FEMP), and the grant programs.
4. Corporate Management, which includes the three administrative programs:
Facilities, Program Direction, and Strategic Programs.
Table
45, below, gives the EERE breakdown of recent fiscal year appropriations—and the
current
FY2016 request—by program office.
26
LED is an abbreviation for light-emitting diode, a form of solid state lighting.
For more about CEMI, see (1) this report’s section on Advanced Manufacturing, (2) p. 14 of the budget request for
FY2015 at http://energy.gov/sites/prod/files/2014/04/f14/Volume%203.pdf, and (3) the EERE program site at
http://energy.gov/eere/cemi/clean-energy-manufacturing-initiative.
28
For more about wide bandgap semiconductors, see (1) p. 14 of the budget request for FY2015 at http://energy.gov/
sites/prod/files/2014/04/f14/Volume%203.pdf, (2) p. 6 of the request for FY2014 at http://energy.gov/sites/prod/files/
2013/04/f0/Volume3_1.pdf, (3) the EERE program site at http://manufacturing.gov/docs/
wide_bandgap_semiconductors.pdf, and (4) the EERE program site at http://energy.gov/articles/factsheet-nextgeneration-power-electronics-manufacturing-innovation-institute.
29
For more details, see DOE, Factsheet: Next Generation Power Electronics Manufacturing Innovation Institute, 2014,
http://energy.gov/articles/factsheet-next-generation-power-electronics-manufacturing-innovation-institute.
27
Congressional Research Service
9
DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
Table 4enacted FY2016 appropriation—by program office.
Table 5. Energy Efficiency and Renewable Energy Programs
($ millions, current dollars)
FY2014
Approp.
FY2015
Approp.
FY2016
Request
House
Approp.
Committee
Difference:
House
Committee–
FY2015
Approp.
92.9
97.0
103.0
94.1
-2.9
-3.0%
Bioenergy
232.3
225.0
246.0
165.3
-59.7
-26.5%
Vehicle Technologies
289.7
280.0
444.0
255.4
-24.6
-8.8%
Subtotal, Sustainable
Transportation
615.0
602.0
793.0
514.8
-87.2
-14.5%
Solar Energy
257.1
233.0
336.7
151.6
-81.4
-34.9%
Wind Energy
88.1
107.0
145.5
90.5
-16.6
-15.5%
Geothermal Technology
45.8
55.0
96.0
46.0
-9.0
-16.4%
Water Power (Hydro/Ocean)
58.6
61.0
67.0
38.7
-22.3
-36.6%
($ millions, current dollars)
Program
|
FY2014Approp.
FY2015 Approp.
|
FY2016 Request
|
FY2016 Final Approp.
|
Difference: FY2016 –FY2015
|
Percent Change
|
|
Hydrogen/Fuel Cell Technologies
|
92.9
|
97.0
|
103.0
|
101.0
|
4.0
|
4.1%
|
|
Bioenergy
|
232.3
|
225.0
|
246.0
|
225.0
|
0.0
|
0.0%
|
|
Vehicle Technologies
|
289.7
|
280.0
|
444.0
|
310.0
|
30.0
|
10.7%
|
|
Subtotal, Sustainable Transportation
|
615.0
|
602.0
|
793.0
|
636.0
|
34.0
|
5.6%
|
|
Solar Energy
|
257.1
|
233.0
|
336.7
|
241.6
|
8.6
|
3.7%
|
|
Wind Energy
|
88.1
|
107.0
|
145.5
|
95.5
|
-11.6
|
-10.8%
|
|
Geothermal Technology
|
45.8
|
55.0
|
96.0
|
71.0
|
16.0
|
29.1%
|
|
Water Power (Hydro/Ocean)
|
58.6
|
61.0
|
67.0
|
70.0
|
9.0
|
14.8%
|
Subtotal, Renewable
Power
449.5
|
456.0
|
645.2
|
478.1
|
22.1
|
4.8%
|
|
Building Technologies
|
177.9
|
172.0
|
264.0
|
200.5
|
28.5
|
16.6%
|
|
Advanced Manufacturing
|
180.5
|
200.0
|
404.0
|
228.5
|
28.5
|
14.3%
|
|
Federal Energy Management
|
28.2
|
27.0
|
43.1
|
27.0
|
0.0
|
0.0%
|
|
Subtotal, Efficiency
|
386.6
|
399.0
|
711.1
|
456.0
|
57.0
|
14.3%
|
|
Program Direction
|
162.0
|
160.0
|
165.3
|
155.0
|
-5.0
|
-3.1%
|
|
Strategic Programs
|
23.5
|
21.0
|
27.9
|
21.0
|
0.0
|
0.0%
|
|
Facilities and Infrastructure
|
46.0
|
56.0
|
62.0
|
62.0
|
6.0
|
10.7%
|
R&D Totala
1,451.1
|
1,457.0
|
2,149.3
|
1,570.0
|
113.0
|
7.8%
|
|
Weatherization Grants
|
173.9
|
193.0
|
228.4
|
215.0
|
22.0
|
11.4%
|
|
State Energy Grants
|
50.0
|
50.0
|
70.1
|
50.0
|
0.0
|
0.0%
|
|
Other / Local Energy Grants
|
7.0
|
—
|
20.0
|
0.0
|
0.0
|
0.0%
|
Grants Totalb
230.9
|
243.0
|
318.5
|
265.0
|
22.0
|
9.1%
|
|
Use of Prior Year Balances
|
-2.4
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0%
|
|
Floor amendments
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Rescission
|
-10.4
|
-13.1
|
—
|
-3.8
|
—
|
—
|
|
Total EERE Appropriation
|
1,900.6
|
1,923.9
|
2,723.0
|
2,069.2
|
145.3
|
7.6%
|
Source: P.L. 114-113, FY2015 and FY2016 DOE budget requests.
a.
Does not include R&D programs share of Corporate Management (Program Direction, Strategic Programs, Facilities and Infrastructure).
b.
Does not include Grants programs share of Corporate Management.
Goals and Funding for Program Offices
Sustainable Transportation
Hydrogen/Fuel Cell Program37
This program aims to reduce petroleum use, greenhouse gas emissions, and criteria air pollutants, while contributing to a more diverse and efficient energy infrastructure. The program supports applied research, development, and demonstration (RD&D) of hydrogen and fuel cell technologies, as well as efforts to overcome economic and institutional barriers to commercial deployment. The fuel cell program targets a cost below $40 per kilowatt (kw) and a durability of 5,000 hours (equivalent to 150,000 miles) by 2020. For hydrogen produced from renewable resources, the target is to bring the cost (dispensed and untaxed) below $4.00 per gasoline gallon-equivalent (gge) by 2020.
For FY2016, DOE requested $103 million—a small increase over the FY2015 appropriation. Increases for hydrogen fuel R&D and fuel cell R&D would be offset partially by a reduction for technology validation. The House committee report proposed a $3 million cut from the FY2015 level and recommended cost-shared efforts with states to expand vehicle applications and to address challenges to hydrogen infrastructure. The House-passed Energy and Water Development (E&W) Appropriations bill (H.R. 2028) adopted the committee-recommended level. The Senate committee report recommended level funding with that for FY2015 and a minimum of $35.2 million for R&D. Division D of P.L. 114-113 provided $101 million, an increase of $4 million over the FY2015 level.
Bioenergy Program38
This program aims to foster a domestic bioenergy industry that produces renewable biofuels, bioproducts, and biopower. The goals are to curb oil dependence, reduce greenhouse gas emissions, and stimulate economic and job development—especially in farms and forests. While biofuels and industrial bioproducts (plastics, solvents, and alcohols) may soon be price-competitive, swings in oil prices pose an ongoing challenge to achieving cost-competitiveness. The program aims to overcome a feedstock collection barrier by focusing on converting raw biomass to solid pellets or to "green crude" bio-oil that would be easy to transport at large scale.
Recent goals expand the program scope to include the development of biofuels that would contribute to production targets of the Renewable Fuel Standard (RFS). These "drop-in" liquid fuels would be largely compatible with existing infrastructure that delivers, blends, and dispenses fuels. Examples include biomass-based hydrocarbon fuels (renewable gasoline, diesel, and jet fuel), hydrocarbons from algae, and biobutanol. The program aims to help the non-food drop-in biofuels reach a wholesale finished-fuel cost under $3 per gge by 2017 and $3/gge for algae-based fuels by 2020.
For FY2016, DOE requested $246 million for Bioenergy (formerly Biomass and Biorefinery) programs, a $21 million increase (in current dollars) over the FY2015 appropriation.39 Of that total increase, an $8 million (10%) increase would have gone to the Demonstration & Market Transformation subprogram to support three biorefinery pilot projects—or one new demonstration project—to broaden pathways for converting biomass to hydrocarbon fuels. Also, a $7 million increase would have gone to the Feedstocks subprogram, to increase the yield of algal biomass conversion to biofuel intermediate oil. Under the Demonstration subprogram, EERE would also continue to manage commercial biofuel manufacturing facilities—established jointly with the Departments of the Navy and Agriculture—to produce fuels that meet military-specifications.
The House committee report proposed a cut of $60 million below the FY2015 level and recommended no funding for the drop-in biofuels project with the Departments of the Navy and Agriculture. Also, the committee directed DOE to perform an assessment of the potential for existing facilities to produce bio-based products and chemicals. The House-passed E&W bill (H.R. 2028) adopted the committee recommended level. The Senate report recommended level funding with FY2015 and included $45 million for the drop-in biofuels project and $30 million for algae biofuels. Also, DOE is directed to include biopower projects as eligible for technology development funding. The enacted law provided $225 million, the same level as the FY2015 appropriation.
Vehicle Technologies40
This program is driven by the 10-year EV-Everywhere Challenge (launched in 2012), which aims to achieve parity for plug-in electric vehicle (EV) affordability and convenience by 2022. The EV Challenge focuses on advanced battery technology, power electronics, and advanced charging technology. A key supporting technology goal is to cut battery production cost from $300/kwh of battery capacity in 2014 to $125/kwh by 2022.41 Further, the EV program seeks to reduce vehicle materials weight by 30% from 2002 to 2022 and to cut electric drivetrain cost from $16/kw in 2013 to $8/kw by 2022. Other program goals include (1) a cut of 1.8 million barrels per day (16%) in national oil use by 2020, and (2) a hike in fuel economy to 62 miles per gallon (mpg) for cars by 2025. Also, the Vehicle Technologies program participates in the Grid Modernization Crosscut through its Grid Integration Initiative.
To help achieve those goals and support the EV Everywhere initiative, DOE requested $444 million, an increase of $164 million—the second-largest program increase for FY2016. There are four main parts to the $164 million increase. First, funding for batteries and electric drives would increase by $41 million, focused on advanced batteries, power electronics, and charging stations. Second, funding for materials technology would increase by $35 million, emphasizing carbon fiber and other composites, lightweight materials compatible with manufacturing infrastructure, and high temperature materials for valves and turbochargers. Third, funding for outreach and deployment would rise by $28 million to initiate Alternative Fuel Vehicle Community Partner projects. Fourth, funding for fuels and lubricants would rise by $17 million, mainly for Plug-in EV (PEV) vehicle-grid integration, wireless charging, codes and standards, modelling and simulation, and the Supertruck II (idling, HVAC) project.
The House committee report proposed a cut of $25 million below the FY2015 level. The committee encouraged DOE to address barriers to adoption of lightweight vehicle designs and to work with industry on emissions controls for natural gas vehicles. The House-passed E&W bill adopted the committee recommended level. The Senate report recommended an increase of $12 million over the FY2015 level and included $20 million for the SuperTruck II program. P.L. 114-113 provided $310 million, an increase of $30 million.
Renewable Power
Solar Energy42
For this program, DOE requested $337 million, an increase of $104 million over the FY2015 appropriation. The funding would support the SunShot Initiative goal to achieve a cost of solar power of 6 cents/kwh to make utility-scale solar power cost-competitive without incentives by 2020. This effort includes solar photovoltaic R&D; activities that enable a 50% reduction in non-hardware "soft costs"; and development and demonstration of innovative solar energy manufacturing technologies to increase U.S. competitiveness—in support of EERE's Clean Energy Manufacturing Initiative.
The FY2016 funding increase would be spread mainly over four subprograms: a $33 million increase under Systems Integration, for grid integration and dispatchability; a $27 million increase under Photovoltaic R&D, mainly to improve reliability and cell efficiency; a $27 million increase under Balance of Systems, to address barriers and to identify new markets; and a $16 million increase under Manufacturing Innovations, to cover both processes and tool development.
The House committee report proposed a cut of $129 million below the FY2015 level. Further, the committee recommended no funding for the SUNPATH III program. Also, the committee report directed that the program reduce the amount of silicon needed to produce a solar cell. The House-passed bill adopted the committee recommended level. The Senate report recommended an $8.6 million increase over the FY2015 level. P.L. 114-113 provided $242 million, an increase of $9 million.
Wind Energy43
There are three key goals for the Wind Program. First, for land-based windfarms, there is a goal for the energy cost of land-based utility-scale turbines to reach levelized cost of energy (LCOE)44 parity with other power plants.45 Second, for offshore settings, the goal is to cut energy costs from 21 cents per kilowatt-hour (kwh) in 2010 to 17 cents/kwh (without incentives) by 2020. Third, by achieving those cost reduction goals, there is a further overall goal to meet up to 20% of projected electricity demand by 2030. DOE suggests that it may extend this goal to 35% by 2050.46
DOE requested $146 million, a $39 million increase over the FY2015 appropriation. The main share of that increase, $24 million, would have gone to the Technology RD&T and Resource Analysis subprogram. It would support new initiatives for rotor design, drivetrain, and the atmosphere-to-electrons (A2e) smart technology demonstration partnerships. Also, a $17 million increase would be used to mitigate market barriers involving transmission access, radar, permitting, and environmental issues. The largest share of that increase would aim to reduce the impacts of windfarms on eagles and other wildlife.
The House committee report proposed a cut of nearly $17 million below the FY2015 level. Also, the committee supported an emphasis on development of offshore technologies that address issues such as high winds, icing, and deep water. The House-passed bill adopted the committee recommended level. The Senate report recommended a cut of $61 million from the FY2015 level—the largest cut it recommended for FY2016. All of the funding would have gone to offshore wind development. P.L. 114-113 provided $96 million, a decrease of nearly $12 million.
Geothermal Technologies47
This program aims to lower the risk of resource exploration and cut power production costs to 6 cents/kwh for geothermal power equipment by 2030. The Hydrothermal subprogram has a goal of developing 30 gigawatts48 (gw) of new resources. It is mainly focused on sensing and drilling technologies designed to target and develop "blind" resource areas. Those resources are mainly in the western United States.
For the enhanced geothermal systems (EGS) subprogram,49 a 2006 study50 by the Massachusetts Institute of Technology (MIT) suggested that, at a depth of about six miles, there should be a usable and much larger resource nationwide.51 The long-term goal is to develop 100 gw of this resource. EGS is focused on adapting specialized resource development technology—which has parallels to oil and gas fracking technology—but it may face even greater technical barriers.
DOE requested $96 million, an increase of $41 million over the FY2015 appropriation. The Hydrothermal subprogram would get $24 million of that increase to complete phase 1 of the play fairway analysis (PFA),52 launch PFA phase 2 for certain target areas, and support the Subsurface Engineering crosscutting (SubTER) program. The EGS subprogram would get $13 million of the increase to apply to the first field lab drilling53 and to further supercritical CO2 (sCO2) tests.54 There is some debate over the fracking aspect of EGS.55 Concerns include earthquakes, leakages, and spills. DOE's responses to those concerns include the formulation of a seismicity protocol56 and the development of best management practices.57
The House committee report proposed a cut of $9 million below the FY2015 level. The House-passed bill adopted the committee recommended level. The Senate report recommended an increase of $16 million relative to the FY2015 level. P.L. 114-113 provided $71 million, an increase of $16 million.
Water Power58
Water power technologies employ conventional hydropower resources—and marine and hydrokinetic (wave, tidal, current, and ocean thermal) resources—to generate electricity. The Hydropower program supports technology development, market acceleration, and grid integration across three resource classes: (1) existing water infrastructure—non-powered dams, (2) undeveloped streams, and (3) pumped-storage hydropower (PSH). Hydropower technology is well established, but the fledgling industry for marine and hydrokinetic (MHK) power facilities is still looking to develop a clear technology theme and viable commercial strategy. Because more than 50% of the nation's population lives within 50 miles of a coastline, MHK technologies have significant potential to provide renewable electricity to consumers in coastal load centers, Power
449.5
456.0
645.2
326.8
-129.3
-28.3%
Building Technologies
177.9
172.0
264.0
150.4
-21.6
-12.6%
Advanced Manufacturing
180.5
200.0
404.0
205.0
5.0
2.5%
28.2
27.0
43.1
18.8
-8.2
-30.4%
Subtotal, Efficiency
386.6
399.0
711.1
374.2
-24.4
-6.2%
Program Direction
162.0
160.0
165.3
150.0
-10.0
-6.3%
Strategic Programs
23.5
21.0
27.9
12.0
-9.0
-42.9%
Facilities and Infrastructure
46.0
56.0
62.0
56.0
0.0
0.0%
1,451.1
1,457.0
2,149.3
1,215.7
-241.3
-16.6%
173.9
193.0
228.4
193.4
0.4
0.2%
50.0
50.0
70.1
50.0
0.0
0.0%
7.0
—
20.0
0.0
0.0
—
230.9
243.0
318.5
243.4
0.4
0.2%
-2.4
0.0
0.0
-19.3
-19.3
—
—
—
—
—
—
—
-10.4
-13.1
—
—
13.1
—
1,900.6
1,923.9
2,723.0
1,657.8
-266.2
-13.8%
Program
Hydrogen/Fuel Cell
Technologies
Federal Energy Management
R&D
Totala
Weatherization Grants
State Energy Grants
Other / Local Energy Grants
Grants Totalb
Use of Prior Year Balances
Floor amendments
Rescission
Total EERE Appropriation
Percent
Change
Source: FY2015 and FY2016 DOE budget requests, and various House and Senate appropriations reports.
a.
Does not include R&D programs share of Corporate Management (Program Direction, Strategic Programs,
Facilities and Infrastructure).
b.
Does not include Grants programs share of Corporate Management.
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Congressional Action
House
Appropriations
Subcommittee Action
On February 26, 2015, the House Appropriations Committee’s Subcommittee on Energy and
Water Development held a hearing on DOE’s FY2016 budget request.30 Energy Secretary Ernest
Moniz testified about the request for EERE and other DOE offices.31 One question involved
comparing the size of the EERE request with the amount requested for the other energy
technology programs—fossil energy and nuclear energy. The Secretary stated that the EERE
request should be viewed as funding for three distinct programs—renewable energy, energy
efficiency, and sustainable transportation—and that the funding requested for each of those
activities is comparable to that for fossil and nuclear programs. Regarding EERE programs,
Subcommittee Members offered several questions and discussion points, including the role of
CEMIs in manufacturing, the status of the SunShot initiative, energy efficiency standards for
consumer electronics, and the geographic distribution of funding for the Weatherization program.
On April 13, 2015, the subcommittee released a draft version of the Energy and Water
Development and Related Agencies Appropriations Act, 2016.32 The FY2016 E&W bill would
provide nearly $1.658 billion for EERE, a cut of $266 million from the FY2015 funding level.
The Subcommittee markup was held April 15, 2015.
Full Committee Action
On April 21, 2015, the House Appropriations Committee released a draft report for the FY2016
E&W bill. The draft report recommends that EERE funding be cut by $266 million relative to the
FY2015 level, which would be $1.065 billion less the request.33 The major proposed program cuts
relative to the FY2015 appropriation levels are shown in Table 5.
30
U.S. Congress, House Committee on Appropriations, Subcommittee on Energy and Water Development, and Related
Agencies, Budget Hearing – Department Of Energy, 114th Cong., 1st sess., February 26, 2015. A video replay of the
hearing is available at http://appropriations.house.gov/videos/?VideoID=6v58MwIgiz0 and at
https://www.youtube.com/watch?v=6v58MwIgiz0&t=1266.
31
The prepared written text of his testimony is available at http://energy.gov/articles/secretary-monizs-writtentestimony-presidents-fy2016-budget-us-house-representatives.
32
This is now H.R. 2028. Hereinafter referred to as the FY2016 E&W bill.
33
The final report (H.Rept. 114-91), approved by the full committee, adopted the same funding marks.
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Table 5. House Appropriations Committee Major Program Decreases from the
FY2015 Appropriation to the FY2016 Recommendation
($ millions, current dollars)
Program
Decrease
Percent Decrease
Solar
- $81
- 35%
Bioenergy
- $60
- 27%
Vehicles
- $25
- 9%
Water Power
- $22
- 37%
Buildings
- $22
- 13%
Wind
- $17
- 16%
Source: House Appropriations Committee, H.Rept. 114-91, April 22, 2015.
Notes: Funding and percentages are rounded-off, for simplicity.
In the final report,34 the committee expressed concern about a lack of balance in DOE’s stated “all
of the above” approach to energy technology funding for FY2016. The report cites general
concerns about excessive prior-year balances and the lack of a five-year budget required by
statute.
The committee noted a continuing concern about proposals for new research centers that are
“reliant on out-year funding commitments.” As examples, the report notes:
In fiscal year 2016, the Department proposed funding two new Clean Energy Manufacturing
Innovation Institutes, in addition to providing continued funding for the existing four
Institutes funded in prior years.... The funding of institutes constitutes a growing portion of
the Department’s budget and represents a significant out-year investment.35
Further, the committee reiterated a previous direction that DOE “include in future budget
justifications for all centers, hubs, institutes, facilities, and any other persistent, location-based
grantees; their current and proposed funding levels; expected out-year commitments; and details
on their programmatic and technical goals.”36
As general guidance to EERE, the committee repeats prior year encouragement that DOE
“examine the feasibility of ultraconductive copper as an application-driven, crosscutting
technology area, including funding to support prototype development and the scale-up of
manufacturing with established experts within EERE.”37
The committee report contained several management and program directives for FY2016. One
general directive specifies that DOE “is directed to end the practice of taking a small fraction of
34
H.Rept. 114-91.
H.Rept. 114-91, p. 79.
36
Ibid, p. 80.
37
Ultraconductive copper is a composite material that includes less than 1% of carbon nanotubes suspended in more
than 99% of copper. It has an electrical conductivity, at room temperature, up to double that of pure copper. The
European Commission, the main administrative agency of the European Union (EU), launched an “ultrawire” R&D
initiative late in 2013. Ultra Conductive Copper-Carbon Nanotube Wire http://ultrawire.eu/.
35
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annual funding within EERE technology offices to fund incubator programs.”38 Additional
committee directives are associated with specific programs and are described in the section below
on “Goals and Funding for Program Offices.”
On April 21, 2015, the Office of Management and Budget (OMB) issued a letter to the House
Appropriations Committee that expressed the Administration’s concerns with the draft bill.39 The
letter addresses the committee-proposed funding cuts relative to the DOE request. Regarding the
request for EERE, the letter states that
This significantly reduced level of funding would slash the number of research,
development, and demonstration projects supported in cooperation with industry,
universities, and the national labs—curtailing critical innovation and technological
advancement in clean and renewable energy, as well as solutions to cut U.S. dependence on
oil and reduce energy waste, all while also undermining the Nation’s industrial
competitiveness in the future global clean energy economy.40
In conclusion, the letter states an interest in working with the committee to address the
Administration’s concerns about the bill.
On April 22, 2015, the full committee markup was held. Several amendments were adopted, none
of which affect the provisions for EERE. However, some controversial amendments were adopted
that would affect national water policies and would allow firearms to be carried on Army Corps
of Engineers lands. The Ranking Minority Member noted that “the White House has previously
threatened to veto similar provisions.”41
On April 28, 2015, OMB issued a Statement of Administration Policy on H.R. 2028. 42 The
Statement puts forward the view that the Administration “strongly opposes House passage of H.R.
2028.” The Statement says that the bill “drastically underfunds critical investments that develop
American energy sources to build a clean and secure energy future.... ” Further, the Statement
notes that the bill “would put at risk U.S. competitiveness in new markets for clean energy
industries ... and ... includes “highly problematic ideological riders.... ” Regarding EERE, the
Statement finds that “The proposed reductions significantly underfund critical activities that
support the development and commercialization of clean energy technologies.”
House Floor Action
On May 1, 2015, the House approved H.R. 2028. In House floor action, seven amendments to
EERE programs were adopted, three of which made small changes to program funding.
38
Ibid, p. 82.
This is now H.R. 2028.
40
See Office of Management and Budget, Letter to Chairman Rogers, April 21, 2015, posted by CQ at
http://www.cq.com/pdf/govdoc-4666923.
41
Congressional Quarterly News, Energy-Water Spending Bill Heads to Floor with Environmental Riders, April 22,
2015.
42
See Office of Management and Budget, Statement of Administration Policy: H.R. 2028—Energy and Water
Development and Related Agencies Appropriations Act, 2016, April 28, 2015, posted by CQ at http://www.cq.com/pdf/
govdoc-4671900.
39
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•
H.Amdt. 166 (Lamborn) redirects $4 million of overall EERE funding to support
a specific EERE subprogram: the U.S.-Israel Cooperative Energy Research
partnership.
•
H.Amdt. 169 (Bonamici) increases funding for EERE’s Water Power program by
$9 million. That increase is offset by a reduction in DOE’s Departmental
Administration account.
•
H.Amdt. 170 (Cohen) increases funding for EERE’s Super Truck II subprogram
by $2 million. That increase is offset by a reduction in DOE’s Departmental
Administration account.
Taken together, those three amendments add $11 million to the FY2016 level recommended by
the House Appropriations Committee.
Another group of three amendments prohibits DOE from using funds to enforce energy efficiency
standards for three consumer products.
•
H.Amdt. 192 (Burgess) prohibits the use of bill funding to enforce light bulb
standards set by the Energy Independence and Security Act of 2007 (P.L. 110140).43
•
H.Amdt. 193 (Dent) prohibits the use of bill funding to “finalize, implement, or
enforce” DOE’s effort to develop a proposed rule that may raise efficiency
standards for ceiling fans and ceiling fan light kits.
•
H.Amdt. 205 (Blackburn) prohibits the use of bill funding to enforce DOE’s
February 2015 proposed rule to raise the energy efficiency standard for
residential gas furnaces.
Lastly, H.Amdt. 195 (Stivers) prohibits the use of bill funding to support the Cape Wind Energy
Project.
Oversight
Energy and Commerce Committee
The House Energy and Commerce Committee’s Subcommittee on Energy and Power held a
hearing on the DOE FY2016 request on February 11, 2015.44 Regarding EERE programs,
Subcommittee Members offered some questions and discussion points, including the selection of
themes for CEMI manufacturing institutes, grid modernization and integration with renewables,
the status of enhanced geothermal systems (EGS), building technologies, equipment efficiency
standards, and biofuels developments.
43
H.Amdt. 192 was adopted on a vote of 232-189.
U.S. Congress, House Committee on Energy and Commerce, Subcommittee on Energy and Power, The Fiscal Year
2016 Department of Energy Budget, 114th Cong., 1st sess., February 11, 2015. A video replay of the Energy and Power
Subcommittee’s February 11, 2015, hearing on the DOE request is available at http://energycommerce.house.gov/
hearing/fiscal-year-2016-department-energy-budget. The prepared written testimony of Secretary Moniz is available at
http://energy.gov/articles/secretary-monizs-written-testimony-presidents-fy2016-budget-us-house-representatives.
Also, a hearing background memo prepared by the Majority staff is available at http://docs.house.gov/meetings/IF/
IF03/20150211/102942/HHRG-114-IF03-20150211-SD002.pdf.
44
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Science Committee
The House Science, Space, and Technology Committee’s Subcommittee on Energy held a hearing
on the EERE request on March 24, 2015.45 David Danielson, Assistant Secretary for EERE,
testified for DOE. Discussion and debate at the hearing covered a wide range of points about
market barriers and the role of the federal government. Four key discussion points focused on
funding amount, market failure, program design, and energy security.
Funding Amount
Concern was expressed about DOE’s request for a very large EERE increase while “our national
debt [is] at $18 trillion and rising, and mandatory spending caps [are] guiding budgets on
everything from energy to national defense.... ”46 In reference to the 2013 agreement on budget
sequestration, Dr. Danielson provided testimony that, “The President’s budget builds on this
[agreement’s] progress by reversing sequestration, while also proposing additional deficit
reduction” which would allow pro-growth investments in EERE programs.47
Market Failure
Dr. Danielson asserted that the funding increase requested for EERE is needed to address
international competition. His printed statement stresses that “the U.S. industry is systematically
underinvesting in research and development ... [and] ... is investing significantly less in clean
energy, on a percentage of gross domestic product (GDP) basis, compared to major trading
competitors like China and Japan by a factor of nearly three.”48 Other witnesses countered that
EERE (and Nuclear and Fossil energy R&D program) “subsidies” create market distortions that
crowd-out private sector investment and can serve as “corporate welfare” for some big
companies.49 They suggested that it would be better to eliminate all energy incentives (including
nuclear, coal, and natural gas)50 and to instead pursue governmental market reforms that allow
energy technologies to “be more competitive and operate on a level playing field.”51
Program Design
A concern was expressed that EERE’s program activities should eliminate the focus on “reducing
market barriers,” and instead adopt a focus on basic research only, “to lay the foundation for the
next technology breakthrough.”52 As examples or models for such an approach, two programs at
the Office of Science were cited: the Energy Storage Innovation Hub53 and the Advanced
45
U.S. Congress, House Committee on Science, Space, and Technology, Subcommittee on Energy, Department of
Energy Oversight: Office of Energy Efficiency and Renewable Energy, 114th Cong., 1st sess., March 24, 2015. A video
replay of the Subcommittee’s hearing on the DOE request is available at http://science.house.gov/hearing/
subcommittee-energy-hearing-department-energy-oversight-office-energy-efficiency-and.
46
Printed statement of Energy Subcommittee Chairman Randy Weber.
47
Printed statement of David Danielson, Assistant Secretary of EERE. March 24, 2015, p. 1.
48
Printed statement of David Danielson, p. 2.
49
Printed statement of Nick Loris, Heritage Foundation, p. 7. Printed statement of Veronique De Rugy, p. 2.
50
Printed statement of Nick Loris, Heritage Foundation, p. 5. Printed statement of Veronique De Rugy, p. 2.
51
Printed statement of Nick Loris, Heritage Foundation, p. 10.
52
Printed statement of Energy Subcommittee Chairman Randy Weber.
53
Printed statement of Committee Chairman Lamar Smith.
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DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
Scientific Computing Research (ASCR) facility.54 In contrast to that view, one witness contended
that limiting EERE to basic research would “leave technologies unable to cross the chasm to
commercialization.”55
Energy Security
EERE’s transportation programs were created in response to the oil import shortages of the
1970s. The programs were devised as one part of a broader energy security strategy that also
included a program for coal-based synthetic fuels and creation of the Strategic Petroleum
Reserve. Dr. Danielson provided testimony that the office supports energy security goals through
programs that aim to make vehicles more fuel-efficient and to substitute alternative fuels for
conventional petroleum-based fuels.56 Holding a contrasting view, two other witnesses contended
that oil price volatility does not justify government intervention through DOE spending, because
oil price spikes are “typically short-term issues”57 and markets “adapt to changes in resource
demand and supply through the price mechanism.”58 Further, it was noted that market demand for
transportation fuel is “incentive enough to spur competition in the industry.”59
Senate
Appropriations
On March 25, 2015, the Senate Appropriations Committee’s Subcommittee on Energy and Water
Appropriations held a hearing on DOE’s FY2016 budget request.60 Energy Secretary Ernest
Moniz testified about the request for EERE and other DOE offices.61 He cited examples of
projects in fossil, nuclear, renewables, and energy efficiency as examples of the Administration’s
pursuit of an all-of-the-above energy strategy. Subcommittee Chair Alexander stated that fiscal
constraints on non-defense spending is a major focus because the overall federal budget request
exceeds the spending caps set by the Budget Control Act (P.L. 112-5). His identified four DOE
priorities: (1) double basic energy research, (2) reduce spending on mature technologies (e.g.,
wind energy), (3) regain world leadership in advanced scientific computing (supercomputers),
and (4) solve the nuclear waste disposal problem.
54
Printed statement of Energy Subcommittee Chairman Randy Weber.
Printed statement of Ruth McCormick, Business Council for Sustainable Energy, p. 9. The use of the term “chasm”
was arguably a reference to the concept of the “innovation valley of death,” which is often cited in discussions about
barriers to the commercial development of new applied energy technology R&D and the use of demonstration projects
and other strategies to overcome the barriers.
56
Printed statement of David Danielson, pp. 4-5.
57
Printed statement of Veronique De Rugy, Mercatus Center, p. 3.
58
Printed statement of Nick Loris, Heritage Foundation, p. 3.
59
Printed statement of Nick Loris, Heritage Foundation, p. 3.
60
U.S. Congress, Senate Committee on Appropriations, Subcommittee on Energy and Water Development, and
Related Agencies, FY2016 Department of Energy Budget, 114th Cong., 1st sess., March 25, 2015. A video replay of the
hearing is available at http://www.appropriations.senate.gov/webcast/energy-water-development-subcommitteehearing-fy16-department-energy-budget.
61
The prepared written text of his testimony is available at http://www.appropriations.senate.gov/sites/default/files/
hearings/032515%20Secretary%20Moniz%20Testimony%20-%20EW.pdf.
55
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Oversight
The Senate Committee on Energy and Natural Resources (SENR) held a hearing on the DOE
budget request on February 12, 2015.62 Secretary Moniz provided testimony that emphasized a
number of recent accomplishments—including several by EERE programs—as evidence of
DOE’s all-of-the-above approach for a “clean energy economy.”63 He cited the President’s
Climate Action Plan as a source of guidance and noted that “we need to enable technologies
across all fuel sources to become competitors in a future clean energy marketplace.”64 However,
from another viewpoint, Committee Chair Murkowski stated that she was “obligated to repeat my
usual criticism of DOE’s proposed budget.”65 She noted DOE’s use of the phrase “all-of-theabove” in printed statements, but contended that DOE may not actually employ that strategy in
practice. In support of that view, she observed “We see significant increases for efficiency,
vehicle, and renewable technologies, but virtually all funding for fossil energy would be directed
to carbon capture, methane, or some other environmental consideration.”66
Goals and Funding for Program Offices
Sustainable Transportation
Hydrogen/Fuel Cell Program67
This program aims to reduce petroleum use, greenhouse gas emissions, and criteria air pollutants,
while contributing to a more diverse and efficient energy infrastructure. The program supports
applied research, development, and demonstration (RD&D) of hydrogen and fuel cell
technologies, as well as efforts to overcome economic and institutional barriers to commercial
deployment. The fuel cell program targets a cost below $40 per kilowatt (kw) and a durability of
5,000 hours (equivalent to 150,000 miles) by 2020. For hydrogen produced from renewable
resources, the target is to bring the cost (dispensed and untaxed) below $4.00 per gasoline gallonequivalent (gge) by 2020.
For FY2016, DOE requests $103 million—a small increase over the FY2015 appropriation.
Increases for hydrogen fuel R&D and fuel cell R&D would be offset partially by a reduction for
technology validation. The House committee report proposes a $3 million cut from the FY2015
62
U.S. Congress, Senate Committee on Energy and Natural Resources (SENR), Department of Energy’s FY2016
Budget, 114th Cong., 1st sess., February 12, 2015. A video replay of the SENR hearing is available at
http://www.energy.senate.gov/public/index.cfm/hearings-and-business-meetings?ID=5568eb52-fea5-409a-b037c8e85cc657ec.
63
Printed statement of Secretary of Energy Ernest Moniz, http://www.energy.senate.gov/public/index.cfm/files/serve?
File_id=83f859b6-d91f-4f81-a5ce-9a9a6d515579.
64
Printed statement of Secretary of Energy Ernest Moniz.
65
Printed statement of Committee Chair Lisa Murkowski, http://www.energy.senate.gov/public/index.cfm/files/serve?
File_id=4f2faf2a-2538-411c-ba22-ed2c44e76062.
66
Printed statement of Committee Chair Lisa Murkowski.
67
The Hydrogen/Fuel Cell program is covered in DOE, FY2016 Budget Request, pp. 74-100. Note: This page reference
is for DOE’s PDF file available on the web—the printed version has slightly different pagination.
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level and recommends cost-shared efforts with states to expand vehicle applications and to
address challenges to hydrogen infrastructure.
Bioenergy Program68
This program aims to foster a domestic bioenergy industry that produces renewable biofuels,
bioproducts, and biopower. The goals are to curb oil dependence, reduce greenhouse gas
emissions, and stimulate economic and job development—especially in farms and forests. While
biofuels and industrial bioproducts (plastics, solvents, and alcohols) may soon be pricecompetitive, swings in oil prices pose an ongoing challenge to achieving cost-competitiveness.
The program aims to overcome a feedstock collection barrier by focusing on converting raw
biomass to solid pellets or to “green crude” bio-oil that would be easy to transport at large scale.
Recent goals expand the program scope to include the development of biofuels that would
contribute to production targets of the Renewable Fuel Standard (RFS). These “drop-in” liquid
fuels would be largely compatible with existing infrastructure that delivers, blends, and dispenses
fuels. Examples include biomass-based hydrocarbon fuels (renewable gasoline, diesel, and jet
fuel), hydrocarbons from algae, and biobutanol. The program aims to help the non-food drop-in
biofuels reach a wholesale finished-fuel cost under $3 per gge by 2017 and $3/gge for algaebased fuels by 2020.
For FY2016, DOE requests $246 million for Bioenergy (formerly Biomass and Biorefinery)
programs, a $21 million increase (in current dollars) over the FY2015 appropriation.69 Of that
total increase, an $8 million (10%) increase would go to the Demonstration & Market
Transformation subprogram to support three biorefinery pilot projects—or one new
demonstration project—to broaden pathways for converting biomass to hydrocarbon fuels. Also,
a $7 million increase would go to the Feedstocks subprogram, to increase the yield of algal
biomass conversion to biofuel intermediate oil. Under the Demonstration subprogram, EERE
would also continue to manage commercial biofuel manufacturing facilities—established jointly
with the Departments of the Navy and Agriculture—to produce fuels that meet militaryspecifications.
The House committee report proposes a cut of $60 million below the FY2015 level and
recommends no funding for the drop-in biofuels project with the Departments of the Navy and
Agriculture. Also, the committee directs DOE to perform an assessment of the potential for
existing facilities to produce bio-based products and chemicals.
Vehicle Technologies70
This program is driven by the 10-year EV-Everywhere Challenge (launched in 2012), which aims
to achieve parity for plug-in electric vehicle (EV) affordability and convenience by 2022. The EV
Challenge focuses on advanced battery technology, power electronics, and advanced charging
technology. A key supporting technology goal is to cut battery production cost from $300/kwh of
68
The Bioenergy program is covered in DOE, FY2016 Budget Request, pp. 52-73.
Unless otherwise noted, all comparisons of the FY2016 request with the FY2015 appropriation will employ current
dollars for each year—not constant (inflation-adjusted) dollars.
70
The Vehicle Technologies program is covered in DOE, FY2016 Budget Request, pp. 19-51.
69
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battery capacity in 2014 to $125/kwh by 2022.71 Further, the EV program seeks to reduce vehicle
materials weight by 30% from 2002 to 2022 and to cut electric drivetrain cost from $16/kw in
2013 to $8/kw by 2022. Other program goals include (1) a cut of 1.8 million barrels per day
(16%) in national oil use by 2020, and (2) a hike in fuel economy to 62 miles per gallon (mpg) for
cars by 2025. Also, the Vehicle Technologies program participates in the Grid Modernization
Crosscut through its Grid Integration Initiative.
To help achieve those goals and support the EV Everywhere initiative, DOE requests $444
million, an increase of $164 million—the second-largest program increase for FY2016. There are
four main parts to the $164 million increase. First, funding for batteries and electric drives would
increase by $41 million, focused on advanced batteries, power electronics, and charging stations.
Second, funding for materials technology would increase by $35 million, emphasizing carbon
fiber and other composites, lightweight materials compatible with manufacturing infrastructure,
and high temperature materials for valves and turbochargers. Third, funding for outreach and
deployment would rise by $28 million to initiate Alternative Fuel Vehicle Community Partner
projects. Fourth, funding for fuels and lubricants would rise by $17 million, mainly for Plug-in
EV (PEV) vehicle-grid integration, wireless charging, codes and standards, modelling and
simulation, and the Supertruck II (idling, HVAC) project.
The House committee report proposes a cut of $25 million below the FY2015 level. The
committee encourages DOE to address barriers to adoption of lightweight vehicle designs and to
work with industry on emissions controls for natural gas vehicles.
Renewable Power
Solar Energy72
For this program, DOE requests $337 million, an increase of $104 million over the FY2015
appropriation. The funding would support the SunShot Initiative goal to achieve a cost of solar
power of 6 cents/kwh to make utility-scale solar power cost-competitive without incentives by
2020. This effort includes solar photovoltaic R&D; activities that enable a 50% reduction in nonhardware “soft costs”; and development and demonstration of innovative solar energy
manufacturing technologies to increase U.S. competitiveness—in support of EERE’s Clean
Energy Manufacturing Initiative.
The FY2016 funding increase would be spread mainly over four subprograms: a $33 million
increase under Systems Integration, for grid integration and dispatchability; a $27 million
increase under Photovoltaic R&D, mainly to improve reliability and cell efficiency; a $27 million
increase under Balance of Systems, to address barriers and to identify new markets; and a $16
million increase under Manufacturing Innovations, to cover both processes and tool development.
71
For example, the production cost for present batteries is about $300 for each kwh of battery capacity. So, a battery
capable of generating 25 kwh of motive force energy would cost about $7,500 ($300 multiplied by 25) to produce.
DOE’s goal for 2022 is to reduce that battery production cost to about $3,125 ($125 multiplied by 25).
72
The Solar Energy program is covered in DOE, FY2016 Budget Request, pp. 101-124.
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The House committee report proposes a cut of $129 million below the FY2015 level. The
committee also recommends no funding for the SUNPATH III program. Also, the committee
directs the program to reduce the amount of silicon needed to produce a solar cell.
Wind Energy73
There are three key goals for the Wind Program. First, for land-based windfarms, there is a goal
for the energy cost of land-based utility-scale turbines to reach levelized cost of energy (LCOE)74
parity with other power plants.75 Second, for offshore settings, the goal is to cut energy costs from
21 cents per kilowatt-hour (kwh) in 2010 to 17 cents/kwh (without incentives) by 2020. Third, by
achieving those cost reduction goals, there is a further overall goal to meet up to 20% of projected
electricity demand by 2030. DOE suggests that it may extend this goal to 35% by 2050.76
DOE requests $146 million, a $39 million increase over the FY2015 appropriation. The main
share of that increase, $24 million, would go to the Technology RD&T and Resource Analysis
subprogram. It would support new initiatives for rotor design, drivetrain, and the atmosphere-toelectrons (A2e) smart technology demonstration partnerships. Also, a $17 million increase would
be used to mitigate market barriers involving transmission access, radar, permitting, and
environmental issues. The largest share of that increase would aim to reduce the impacts of
windfarms on eagles and other wildlife.
The House committee report proposes a cut of nearly $17 million below the FY2015 level. Also,
the committee supports an emphasis on development of offshore technologies that address issues
such as high winds, icing, and deep water.
Geothermal Technologies77
This program aims to lower the risk of resource exploration and cut power production costs to 6
cents/kwh for geothermal power equipment by 2030. The Hydrothermal subprogram has a goal of
developing 30 gigawatts78 (gw) of new resources. It is mainly focused on sensing and drilling
technologies designed to target and develop “blind” resource areas. Those resources are mainly in
the western United States.
For the enhanced geothermal systems (EGS) subprogram,79 a 2006 study80 by the Massachusetts
Institute of Technology (MIT) suggested that, at a depth of about six miles, there should be a
73
The Wind Energy program is covered in DOE, FY2016 Budget Request, pp. 125-150.
Levelized cost of electricity (LCOE) is often cited as a convenient summary measure of the overall competiveness of
different generating technologies. It represents the per kilowatt-hour cost (in constant dollars) of building and operating
a generating plant over an assumed financial life and duty cycle. DOE, Energy Information Administration (EIA),
Levelized Cost and Levelized Avoided Cost of New Generation Resources in the Annual Energy Outlook 2014,
http://www.eia.gov/forecasts/aeo/electricity_generation.cfm.
75
In its budget request for FY2014, DOE proposed specific LCOE goals of 5.7 cents/kilowatt-hour (kwh) by 2020 and
4.2 cents/kwh by 2030. That goal for 2020 may have already been reached in some locations.
76
DOE released an update to its analysis of long-term wind energy development goals in early 2015, see DOE,
WindVision: A New Era for Wind Power in the United States, March 2015, http://energy.gov/eere/wind/wind-vision.
77
The Geothermal Technologies program is covered in DOE, FY2016 Budget Request, pp. 167-190.
78
One gigawatt is equal to 1 billion watts, which is the same amount as 1 million kilowatts.
79
EGS are engineered reservoirs. Pressurized fluid is injected into hot rock to open existing fractures. The increased
(continued...)
74
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usable and much larger resource nationwide.81 The long-term goal is to develop 100 gw of this
resource. EGS is focused on adapting specialized resource development technology—which has
parallels to oil and gas fracking technology—but it may face even greater technical barriers.
DOE requests $96 million, an increase of $41 million over the FY2015 appropriation. The
Hydrothermal subprogram would get $24 million of that increase to complete phase 1 of the play
fairway analysis (PFA),82 launch PFA phase 2 for certain target areas, and support the Subsurface
Engineering crosscutting (SubTER) program. The EGS subprogram would get $13 million of the
increase to apply to the first field lab drilling83 and to further supercritical CO2 (sCO2) tests.84
There is some debate over the fracking aspect of EGS.85 Concerns include earthquakes, leakages,
and spills. DOE’s responses to those concerns include the formulation of a seismicity protocol86
and the development of best management practices.87
The House committee report proposes a cut of $9 million below the FY2015 level.
Water Power88
Water power technologies employ conventional hydropower resources—and marine and
hydrokinetic (wave, tidal, current, and ocean thermal) resources—to generate electricity. The
Hydropower program supports technology development, market acceleration, and grid integration
across three resource classes: (1) existing water infrastructure—non-powered dams, (2)
(...continued)
permeability lets fluid circulate into the production well.
80
DOE, Idaho National Laboratory, The Future of Geothermal Energy, 2006 https://mitei.mit.edu/system/files/
geothermal-energy-full.pdf.
81
Enhanced Geothermal System (EGS) projects can be divided into three categories: Infield, Nearfield, and Greenfield
projects. Infield projects are located within an unproductive portion of an operational hydrothermal field. Nearfield
EGS projects lie on the margins of an existing hydrothermal field. Greenfield projects are geothermal resources
engineered where no geothermal development has occurred previously. DOE estimates that the Greenfield resource has
a technical potential of more than 500 gw.
82
The concept of “play fairway analysis” has been used to identify potential locations of blind hydrothermal systems
and to describe geothermal opportunities in rift-zone settings. Borrowed from the petroleum industry, this tool
incorporates the regional or basin-wide distribution of known geologic factors besides heat flow that control the
occurrence of a particular example of a geothermal system. PFA assesses exploration risk and the probability of finding
new resources on a regional scale, resulting in maps and studies that reduce the industry’s drilling and development
risks. For more details, see DOE, Play Fairway Analysis, http://energy.gov/eere/geothermal/play-fairway-analysis.
83
This is a site characterization activity for the Frontier Observatory for Research in Geothermal Energy (FORGE).
FORGE is a dedicated site that enables testing of new technologies and techniques.
84
As part of its participation in the supercritical carbon dioxide (sCO2) crosscutting activity, the increase would support
further testing of CO2 as a geothermal working fluid. This research aims to couple CO2 sequestration with geothermal
energy production.
85
For one discussion of the debate, see Renewable Energy World, Is Fracking for Enhanced Geothermal Systems the
Same as Fracking for Natural Gas?, 2013 http://www.renewableenergyworld.com/rea/news/article/2013/07/isfracking-for-enhanced-geothermal-systems-the-same-as-fracking-for-natural-gas.
86
The DOE seismicity protocol is available at http://www1.eere.energy.gov/geothermal/pdfs/
geothermal_seismicity_protocol_012012.pdf.
87
DOE, Best Practices for Geothermal Power Risk Reduction Workshop Follow-Up Manual, http://geo-energy.org/
reports/Geothermal%20Best%20Practices%20Publication%20Final%20CL188154847.pdf. As an example of best
practices development, DOE cites current work at its proof-of-concept Newberry project in Oregon.
88
The Water Power program is covered in DOE, FY2016 Budget Request, pp. 151-166.
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undeveloped streams, and (3) pumped-storage hydropower (PSH). Hydropower technology is
well established, but the fledgling industry for marine and hydrokinetic (MHK) power facilities is
still looking to develop a clear technology theme and viable commercial strategy. Because more
than 50% of the nation’s population lives within 50 miles of a coastline, MHK technologies have
significant potential to provide renewable electricity to consumers in coastal load centers,
especially where electricity costs are high. Table
56 shows the technical production potential and
program focus for selected water power technologies. Technical potential is different from
economically developable potential, with the latter likely being a much smaller amount.
8959 For
gauging the magnitude of the technical potentials, the bottom line of the table shows the total
U.S. electric power generation during 2013.
Table 6. Water Power Technical Potentials for Sub-Programs
(in trillions of watt-hours, or terawatt-hours)
Sub-Program
Existing Water Infrastructure (NonPowered Dams)
Undeveloped Streams
Wave Energy
Sub-Program
|
Annual Technical Production
Potential
Potential (in terawatt-hours, twh)
Program Focus
31 twh
environmental impact, cost,
competing demands for water
340 twh
environmental impact, endangered
species, modular powertrain
1,170 twh
cost, grid-connected open water test
facility
Tidal Energy
250 twh
cost, innovation
Ocean and River Current Energy
283 twh
cost, innovation
4,066 twh
Not applicable
Total U.S. Power Generation in 2013
Sources: DOE,
Program Focus
|
|
Existing Water Infrastructure (Non-Powered Dams)
|
31 twh
|
environmental impact, cost, competing demands for water
|
|
Undeveloped Streams
|
340 twh
|
environmental impact, endangered species, modular powertrain
|
|
Wave Energy
|
1,170 twh
|
cost, grid-connected open water test facility
|
|
Tidal Energy
|
250 twh
|
cost, innovation
|
|
Ocean and River Current Energy
|
283 twh
|
cost, innovation
|
|
Total U.S. Power Generation in 2013
|
4,066 twh
|
Not applicable
|
Sources: DOE, FY2016 Budget Request, p. 151; DOE Energy Information Administration, Electric Power Annual for
2013 2013, Table 1.1. Total Electric Power Industry Summary Statistics, 2013 and 2012, http://www.eia.gov/electricity/
annual/html/epa_01_01.html
.
Notes: .
Note: One terawatt-hour (twh) is equal to one trillion watt-hours, or 1 billion kilowatt-hours (kwh).
DOE requests
DOE requested $67 million, an increase of $6 million over the FY2015 appropriation. The entire
increase would
gohave gone to the Hydropower subprogram. For non-powered dams, the focus is on
modular powertrains and site engineering designs. For undeveloped streams, the focus is on
innovation in structural materials and construction methods that reduce costs and environmental
disturbance. For FY2016, the Water Power Program supports one DOE crosscut—the
EnergyWaterEnergy-Water Nexus. The crosscut aims to facilitate the transition to more resilient energy and coupled
energy-water systems.
89
An estimate of “technical potential” is always larger than the amount of “economically developable” potential. For
more explanation of these concepts, see DOE, Hydropower Resource Assessment and Characterization
http://energy.gov/eere/water/hydropower-resource-assessment-and-characterization and see DOE, Marine and
Hydrokinetic Resource Assessment and Characterization http://energy.gov/eere/water/marine-and-hydrokineticresource-assessment-and-characterization.
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The House committee report proposes a cut of about $22 million from the FY2015 level. Also,
the committee directs DOE to allocate current (FY2015) funding to MHK based on resource
assessments and stakeholder input.
Energy Efficiency
Building Technologies90
energy-water systems.
The House committee report proposed a cut of about $22 million from the FY2015 level. Also, the committee directed DOE to allocate current (FY2015) funding to MHK based on resource assessments and stakeholder input. The House-passed bill adopted the committee recommended level. The Senate report recommended an increase of $4 million over the FY2015 level. P.L. 114-113 provided $70 million, an increase of $9 million.
Energy Efficiency
Building Technologies60
This program develops energy efficiency technologies to curb building-related energy costs, with
a goal of reducing energy use by 50% from 2010 to 2030. The program strategy is designed with
three linked paths: improve building components (envelope/windows, HVAC,
9161 lighting, and
sensors/controls), strengthen market pull (through cooperation with private industry), and raise
energy efficiency levels for new equipment (via standards) and new buildings (via model codes).
DOE requests
DOE requested $264 million for FY2016, an increase of $92 million over the FY2015
appropriation. That overall increase—combined with $6 million in reductions—would be divided
into increases for three program areas. First, funding for emerging technologies would increase
by $57 million, focused on R&D on sensors, controls, and grid integration, and on new air
conditioning and refrigeration technologies. Second, a $25 million increase for residential
buildings would support retrofits and building codes for new residential construction. Third, a
$16 million increase would aim to accelerate equipment efficiency standards and model building
codes.
The House committee report
proposesproposed a cut of nearly $22 million from the FY2015 level. Also,
the committee
directsdirected DOE to initiate a study of the potential benefits of
‘‘''smart home
’’
'' electronics. Further, the committee
encouragesencouraged DOE to (1) continue to consider energy savings
from increased energy efficiency of consumer electronics, and (2) support collaborative RD&D
with industry on the energy savings potential of adaptive connected equipment and responsive
building technologies.
Advanced Manufacturing92
The House-passed bill adopted the committee recommended level. The Senate report recommended a boost of $6 million over the FY2015 level. P.L. 114-113 provided $201 million, an increase of $29 million.
Advanced Manufacturing62
Domestic manufacturers face increasing challenges in the global marketplace. The Advanced
Manufacturing Office (AMO) was designed to focus on national interests—especially concerns
about jobs, critical materials, and international competitiveness. AMO anchors DOE
’'s Clean
Energy Manufacturing Initiative, which began in 2013. The general goal for AMO programs is to
reduce the energy use of manufactured goods across targeted product life-cycles by 50% over 10
years. More specific objectives include (1) attain 50% energy savings through advanced materials
and industrial processes, (2) help leading companies cut energy intensity by 25% over 10 years,
and (3) facilitate installation of 40 gw of combined heat and power (CHP) equipment by 2020.
93
90
The Building Technologies program is covered in DOE, FY2016 Budget Request, pp. 232-262. For a discussion of
major long-term barriers to buildings energy efficiency, see CRS Report R40670, Energy Efficiency in Buildings:
Critical Barriers and Congressional Policy, by Paul W. Parfomak, Fred Sissine, and Eric A. Fischer.
91
HVAC is an abbreviation for heating, ventilation, and air conditioning equipment.
92
The Advanced Manufacturing program is covered in DOE, FY2016 Budget Request, pp. 190-206.
93
DOE, EERE-Advanced Manufacturing Office, FY14 Budget At-a-Glance, http://www1.eere.energy.gov/office_eere/
pdfs/budget/manufacturing_ataglance_2014.pdf. The 40 gw target would amount to a 50% increase in the total amount
(continued...)
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63
To meet these goals and objectives, DOE
requestsrequested $404 million, a net increase of $204 million
over the FY2015 appropriation—the largest EERE program increase requested for FY2016. Most
of the requested increase—about $149 million—would be directed to the subprogram on
Advanced Manufacturing R&D Facilities. Also, a $49 million increase would be provided for
Advanced Manufacturing R&D Projects.
The proposed $149 million increase for Advanced R&D Facilities would
gohave gone mainly to create two
new Clean Energy Manufacturing Institutes (CEMIs) at a cost of about $70 million each. The
other $9 million would be spread out as support for existing institutes.
9464 The two new institutes
would address any of several topics, including advanced materials (e.g., nanomaterials),
twodimensionaltwo-dimensional roll-to-roll process, high efficiency modular chemical process, bio-manufacturing,
and smart manufacturing, among others. The four existing institutes include Next Generation
Power Electronics (2013), Advanced Composites (2014), Smart Manufacturing (2014), and one
yet to be announced during FY2015.
The CEMIs form part of a larger proposed interagency network aimed at bringing together
universities, industry, and the government to jointly invest in solving industry-relevant problems.
The institutes focus on technologies applicable to multiple industries and markets. This activity
aims to improve U.S. manufacturing competitiveness, in support of DOE
’'s Clean Energy
Manufacturing Initiative and the President
’'s initiative for a multi-agency National Network for
Manufacturing Innovation (NNMI).
9565 A key goal is for each institute to become financially
sustainable within five to seven years after it is established.
CEMIs are a relatively new EERE crosscut activity that is anchored by AMO, and each CEMI
incorporates activities under many of EERE
’'s other programs.
9666 The main goal is to improve U.S.
competitiveness in the manufacturing of clean energy products, such as solar photovoltaic
modules, LEDs, batteries, and wind turbine blades. The CEMI institutes would provide
smallandsmall- and medium-sized enterprises affordable access to cutting-edge physical and virtual
manufacturing capabilities (e.g., 3-D printing equipment) and facilitate technology use in the U.S.
manufacturing sector to bolster its global competitiveness. DOE plans to invest about $70 million
into each CEMI institute, to be used over a five- to seven-year period.
97
67
The final agreement on the FY2015 energy and water development appropriations bill (P.L.
113235113-235, Division D) included some House and Senate policy directives for new funding to establish
additional CEMIs. The House report directed that the request include
“a specific research topic”
(...continued)
that was operating as of 2012. For more details, see DOE, Combined Heat and Power: A Clean Energy Solution, 2012
http://energy.gov/sites/prod/files/2013/11/f4/chp_clean_energy_solution.pdf.
94
The CEMIs are part of the President’s National Network for Manufacturing Innovation (NNMI). For more about
NNMI see CRS Report R42625, The Obama Administration’s Proposal to Establish a National Network for
Manufacturing Innovation, by John F. Sargent Jr.
95
For the NNMI, there were (at the end of 2014) nine institutes in place, and there is an overall goal to establish a total
of 45 institutes over 10 years.
96
Going forward, DOE expects to establish CEMIs as an alternative to the concept of “manufacturing demonstration
facilities” (MDFs), which it implemented in FY2012 with the establishment of the Critical Materials Hub (discussed in
the next paragraph). DOE’s Oak Ridge National Laboratory is the home for AMO’s first MDF focused on additive
manufacturing and low-cost carbon fiber. For more on MDFs, see http://www1.eere.energy.gov/manufacturing/rd/m/
mdf.html.
97
For more about CEMIs, see DOE’s website at http://energy.gov/eere/cemi/clean-energy-manufacturing-initiative.
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"a specific research topic" associated with each newly proposed CEMI. The draft Senate report specified that, for the third
and each subsequent CEMI there shall be a competitive process, committee notification,
development of performance measures, and demonstration of progress toward funding
selfsufficiencyself-sufficiency with prior CEMIs. P.L. 113-235 adopted those House and Senate directives, and
required an EERE report that provides performance measures to assess the effectiveness of
existing CEMIs.
Another R&D facility, the Critical Materials Hub (led by Ames National Laboratory), was created
in FY2012 to focus on technologies that enable manufacturers to make better use of critical
materials (e.g., rare earth elements) and to eliminate the need for materials that are vulnerable to
supply disruptions. Many rare earth elements are essential to technologies of the clean energy
industry.
9868 Examples include wind turbines, solar photovoltaic panels, electric vehicles, and
energy-efficient lighting. DOE
requestsrequested $25 million—level funding—to extend the Hub
’s
's operation for a fifth—and final—year.
Also, DOE
requestsrequested $10 million of further support for the Manufacturing Demonstration Facility
(MDF) at Oak Ridge National Laboratory. This would be the final year of funding for the MDF.
The proposed $49 million increase for Advanced R&D Projects would provide a total of $133
million in FY2016 for this subprogram. Of that total, $113 million would
gohave gone to new projects that
cost $15 million-$20 million each, covering up to six
“foundational”"foundational" areas selected from the
following areas:
•
Chemical process intensification and smart manufacturing—two likely areas of
focus.
•
Grid and resource integration—including advanced combined heat and power,
waste heat recovery, advanced insulation materials, and integration of energy
infrastructure (grid and natural gas).
•
Next generation electric machines—including ultraconductive materials.
•
Sustainable manufacturing—including water-energy nexus.
Also, the request seeks $20 million for the Advanced Manufacturing Incubator, which is focused
on “fundamental” on "fundamental" applied R&D projects for small- and medium-sized manufacturing companies.
The House committee report
proposesproposed an increase of $5 million above the FY2015 level. The
committee recommendation
includesincluded support for one new CEMI institute in FY2016 and
directs
directed that all future budget justifications include a specific research topic associated with
each request for a
new CEMI Institute. Also, the committee
directsdirected DOE to analyze, and report on, the impact
federal investment may have in strengthening the availability and usage of lithium, including
lowsodiumlow-sodium lithium metal. Further, the committee
encouragesencouraged DOE to (1) continue technical
assistance for combined heat and power (CHP) demonstrations for microgrids and grid
integration, as well as R&D on next-generation CHP technologies, and (2) consider the need for
competitively funded advanced textile manufacturing process research.
98
The Hub also supports materials needs for defense and other strategic industries.
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Federal Energy Management Program (FEMP)99
The House-passed bill adopted the committee recommended level.
The Senate report recommended an increase of $14 million over the FY2015 level. Echoing the House report, the Senate committee recommendation included support for one new CEMI institute in FY2016 and directed that all future budget justifications include a specific research topic associated with each request for a new CEMI Institute. For the fourth—and any future—CEMI, the Senate report further required that DOE conduct an open solicitation and competitive, merit-based review process. Also, both reports recommended $25 million for the Critical Materials Hub. P.L. 114-113 provided $229 million, an increase of $29 million.
Federal Energy Management Program (FEMP)69
FEMP provides expertise, training, and other services to help federal agencies achieve
congressionally mandated goals for energy efficiency and renewable energy use. Its mission is
also driven by presidential executive orders that set energy and environmental goals for federal
agencies.
10070 FEMP supports key initiatives to better assist federal agencies in meeting aggressive
energy, water, greenhouse gas (GHG) and other sustainability goals. It also promotes interagency
sharing of solutions—such as best practices, tools, and process improvements.
FEMP helps federal agencies lead by example, by providing assistance to federal agencies
through project financing, technical guidance and assistance, planning and evaluation, and federal
fleet support. By using performance contracts such as energy savings performance contracts
(ESPCs) and utility energy service contracts (UESCs), the federal government is able to engage a
third party (private sector energy service company) to invest in needed energy projects and pay
for the investment through the energy, water, and operations and maintenance (O&M) savings
achieved over the life of the contract.
101
DOE requests71
DOE requested $43 million, about $16 million more than the FY2015 appropriation. Most of the
increase, about $12 million, would support the Federal Energy Efficiency Fund (FEEF), also
known as the Assisting Federal Facilities with Energy Conservation Technologies (AFFECT)
program. This subprogram helps agencies invest in priority projects for efficiency and renewables
with the greatest impact. Efforts under FEEF/AFFECT would be expanded from about six
projects in FY2015 to nearly 30 projects in FY2016. AFFECT awards provide direct funding to
support the best available agency projects and to leverage cost sharing at federal agencies for
capital improvement projects and for other initiatives to increase energy efficiency, conserve
water, and increase renewable energy investments at agency facilities. AFFECT provides a
mechanism for FEMP to help ensure the best projects are funded and stay on schedule.
102
72
The House committee report
proposesproposed a cut of more than $8 million from the FY2015 level.
Grant Programs
Weatherization Grants103
The House-passed bill adopted the committee recommended level. The Senate report recommended funding equal to the FY2015 level. P.L. 114-113 provided $27 million, the same level as the FY2015 appropriation.
Grant Programs
Weatherization Grants73
The Weatherization Assistance Program (WAP) aims to increase the energy efficiency of
dwellings owned and/or occupied by low-income persons, reduce their total energy costs, and
improve their health and safety. Through residential building retrofits, WAP reduces the size of
low-income household energy bills. Energy bills of those households require a larger share of
total income than the energy bills for higher income households. Since 1976, WAP has performed
6 million retrofits, of which 1 million were supported by the Recovery Act of 2009 (P.L. 111-5
). ).
99
The FEMP program is covered in DOE, FY2016 Budget Request, pp. 207-231.
For example, see The White House, Executive Order – Planning for Federal Sustainability in the Next Decade,
March 19, 2015, https://www.whitehouse.gov/the-press-office/2015/03/19/executive-order-planning-federalsustainability-next-decade.
101
DOE, FY2016 Budget Request, p. 212.
102
DOE, FY2016 Budget Request, p. 207.
103
The Weatherization Grants program is covered in DOE, FY2016 Budget Request, pp. 267-270.
100
Congressional Research Service
26
DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
DOE has noted that many states have expended leftover Recovery Act funds and now need new
funds to avoid cutting core programs and services.
104
DOE requests74
DOE requested a $35 million increase over the FY2015 appropriation for a total of $224 million.
About $19 million of that increase (for a total of $209 million) would raise the number of retrofits
in the FY2016 cycle by about 3,000 households (10%).
10575 Also, $15 million of the increase would
be used to test financial models designed to help expand application of the program to
“underserved” "underserved" multifamily buildings.
10676 This action would be accomplished through
competitively selected projects to demonstrate the viability of a variety of financing programs for
replicability across the country.
The House committee report
proposesproposed funding equal to the FY2015 level, and
specifies no
specified no funding of awards for financing models. Also, the committee
directsdirected DOE to report on the use of
solar and other renewables systems in the Weatherization Assistance Program, and to analyze any
requirements of law or regulation that pose a relative cost barrier to the installation of solar
energy systems. Further, the committee
specifiesspecified that DOE should not issue any regulations in
FY2016 which use the May 2013 estimates for the social cost of carbon until a new working
group is convened.
State Energy Grants107
The House-passed bill adopted the committee recommended level. The Senate report recommended a boost of $7.4 million over the FY2015 level. P.L. 114-113 provided $215 million, an increase of $22 million.
State Energy Grants77
The State Energy Program (SEP) assists states in establishing and implementing clean energy
(e.g., energy efficiency and renewable energy) plans, policies, and programs to reduce energy
costs, enhance economic competitiveness, improve emergency planning, and improve the
environment. SEP provides states with capacity building resources, technical assistance, and best
practice sharing networks to facilitate the adoption of plans, policies, and programs that are
appropriate for various state and regional circumstances.
DOE requests
DOE requested an increase of $20 million over the FY2015 appropriation. The proposed increase
would mainly support a new, $15 million program of competitive grants that promotes regional,
sectoral, and national public-private partnerships for innovative scale-up and spread of best
practices for efficiency and renewables.
The House committee report proposes funding equal to the FY2015 level.
Local Energy Grants108
Both the House committee report and Senate report proposed funding equal to the FY2015 level. The House-passed bill adopted the committee recommended level. P.L. 114-113 provided $50 million, the same level as the FY2015 appropriation.
Local Energy Grants78
A new program, with funding of $20 million, would be established with a structure parallel to that
of the SEP grant program. This new program would aim to enhance local government capacity for
energy planning, analysis, and program implementation. Competitive grants would support best
104
For more details about the program, see CRS Report R42147, DOE Weatherization Program: A Review of Funding,
Performance, and Cost-Effectiveness Studies, by Fred Sissine.
105
The estimated increment of retrofits that would be attained with the $19 million increase is based on the DOE
estimate that each household retrofit costs about $6,000.
106
More than half of low-income residents live in multi-family buildings.
107
The State Energy Grants program is covered in DOE, FY2016 Budget Request, pp. 271-273.
108
The proposed Local Energy Grants program is covered in DOE, FY2016 Budget Request, pp. 274-276.
Congressional Research Service
27
DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
practices, technical assistance, and leadership-by-example. DOE expects to support 35 to 40
highly leveraged and replicable projects that would include outdoor lighting, public buildings,
and water/wastewater facilities.
The
Both the House committee report
recommends no funding for this DOE-proposed new program.
Administration
Program Direction109
(and House-passed bill) and the Senate report recommended no funding for this DOE-proposed new program. P.L. 114-113 provided no funds for this program.
Administration
Program Direction79
This administrative program funds federal employee salaries, personnel recruitment, and
workforce training. It also manages contractor support and operational costs. EERE addresses
program cost controls through its Active Project Management (APM) system. DOE
requests $165
requested $165 million, which includes a $5 million increase over the FY2015 level to cover the greater program
activity level that would be associated with the overall requested funding increase of $800 million
for EERE.
The House committee report
proposesproposed a cut of $10 million below the FY2015 level.
Strategic Programs110
The House-passed bill adopted the committee recommended level. The Senate report recommended funding equal to the FY2015 level. P.L. 114-113 provided $155 million, a decrease of $5 million.
Strategic Programs80
The Office of Strategic Programs (formerly Program Support) serves an integrative and
crosscutting mission for EERE. The office has four subprograms: Technology-to-Market,
International, Strategic Priorities and Impact Analysis, and Communications and Outreach. The
Technology-to-Market subprogram organizes partnerships and projects with industry, universities,
DOE’ DOE's national labs, and others to foster recruitment, investment, innovation, technology transfer,
and manufacturing competitiveness. The International subprogram promotes the development of
international export markets for U.S. clean energy equipment and promotes U.S.-based standards,
test procedures, and certifications. The subprogram for Strategic Priorities and Impact Analysis
supports impact assessments and strategic planning for EERE
’'s portfolio. It also leads EERE
implementation of the President
’'s Open Data Policy.
11181 The Communications and Outreach
subprogram handles EERE relations with media and the general public.
For this program, DOE
requestsrequested an increase of about $7 million relative to the FY2015
appropriation. About $4.8 million of that increase would
gohave gone to the Technology-to-Market
subprogram, of which $2.5 million is due to a transfer of the Solar Decathlon activity from
EERE’ EERE's Office of Building Technologies,
11282 and $2.3 million would support a new clean energy
philanthropy alliance and a clean energy jobs initiative.
The House committee report
proposes a cut of about $9 million from the FY2015 level. Also, the
committee directs that $2 million be applied to the U.S.-Israel energy cooperation agreement.
109
The Program Direction activity is covered in DOE, FY2016 Budget Request, pp. 277-281.
Strategic Programs are covered in DOE, FY2016 Budget Request, pp. 282-297.
111
Executive Order M-13-13.
112
The Decathlon is an annual design/build competition for solar-powered homes that involves student teams from
colleges and universities. The transfer is expected to yield better coordination with education and deployment activities.
110
Congressional Research Service
28
DOE’s Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations
Facilities and Infrastructure
The Facilities and Infrastructure (F&I) program budget maintains NREL’s campus of buildings
proposed a cut of about $9 million from the FY2015 level. The Senate report recommended funding equal to the FY2015 level. Also, both committee reports directed that $2 million be applied to the U.S.-Israel energy cooperation agreement. The House-passed bill adopted the committee recommended level. The Senate report directed further that, within six months, DOE report on implementation and coordination plans between EERE and the Office of Fossil Energy to support research and development of natural gas energy technologies as part of the U.S.-Israel cooperative effort. P.L. 114-113 provided $21 million, which is the same as the FY2015 appropriation.
Facilities and Infrastructure
The Facilities and Infrastructure (F&I) program budget maintains NREL's campus of buildings and facilities. The Facility Management subprogram provides the major support for the Energy
Systems Integration Facility (ESIF) at NREL. ESIF is a grid integration research and user facility.
As ESIF completes the third year of start-up activities, its high performance computational
science center (HPC) is oversubscribed and demand for computer time is increasing. The request
seeks an increase of $6 million (20%) to expand the HPC facility, which would nearly double
NREL’ NREL's computer capacity.
The House committee report
proposesproposed no change in funding relative to the FY2015 level.
The House-passed bill adopted the committee recommended level. The Senate report recommended an increase of $6 million relative to the FY2015 level. P.L. 114-113 provided $62 million, an increase of $6 million.
Additional Reports on EERE Programs, Funding,
and Policy
For additional background on selected EERE programs and funding aspects, see
(1) CRS Report R43567, Energy and Water Development: FY2015 Appropriations, coordinated
by Mark Holt.
by [author name scrubbed].
(2) CRS Report RS22858, Renewable Energy R&D Funding History: A Comparison with
Funding for Nuclear Energy, Fossil Energy, and Energy Efficiency R&D
, by [author name scrubbed].
, by Fred Sissine.
(3) CRS Report R40670, Energy Efficiency in Buildings: Critical Barriers and Congressional
Policy, by Paul W. Parfomak, Fred Sissine, and Eric A. Fischer.
Policy, by [author name scrubbed], [author name scrubbed], and [author name scrubbed].
(4) CRS Report R42147, DOE Weatherization Program: A Review of Funding, Performance, and
Cost-Effectiveness Studies
, by [author name scrubbed].
Author Contact Information
[author name scrubbed], Specialist in Energy Policy
([email address scrubbed], [phone number scrubbed])
Footnotes
| 1.
|
The Department of Energy Organization Act of 1977 (P.L. 95-91) defined the organizational structure and administrative functions for DOE. Section 203 established eight unspecified assistant secretary positions that report to the Secretary of Energy. The law directs the Secretary to assign a broad range of duties or "functions" to the Assistant Secretaries. Those functions include energy research, development, and applications for renewable energy and energy efficiency.
|
| 2.
|
Details of EERE's organizational structure of offices and programs—as of January 2015—are presented on DOE's website at http://energy.gov/sites/prod/files/2016/01/f29/EERE%20org%20chart%20public%201-29-2016.pdf.
|
| 3.
|
DOE, EERE, 2016–2020 Strategic Plan and Implementing Framework (EERE Strategic Plan), December 2015, p. 4, http://energy.gov/sites/prod/files/2015/12/f27/EERE_Strategic_Plan_12.16.15.pdf.
|
| 4.
|
EERE Strategic Plan, p. 4.
|
| 5.
|
DOE, EERE Strategic Plan Briefing, January 2016, http://energy.gov/sites/prod/files/2016/01/f28/01072016%20Strategic%20Plan%20External%20Webinar.pdf.
|
| 6.
|
DOE, Office of Energy Efficiency and Renewable Energy FY2016 Budget Overview, March 2015, http://energy.gov/sites/prod/files/2015/03/f20/FY%202016%20Transportation%20Webinar%20%20Presentation.pdf.
|
| 7.
|
The White House, Council of Economic Advisers, 2015 Economic Report of the President, Chapter 6 (The Energy Revolution), p. 242, https://www.whitehouse.gov/administration/eop/cea/economic-report-of-the-President/2015. Natural gas units accounted for most of the remainder.
|
| 8.
|
2015 Economic Report, p. 276.
|
| 9.
|
2015 Economic Report, p. 284.
|
| 10.
|
2015 Economic Report, p. 288.
|
| 11.
|
For more about the background and status of the CPP, see CRS Report R44341, EPA's Clean Power Plan for Existing Power Plants: Frequently Asked Questions, by [author name scrubbed] et al.
|
| 12.
|
For more about the CPP "building blocks" involving renewables and energy efficiency, see CRS Report R43652, State CO2 Emission Rate Goals in EPA's Proposed Rule for Existing Power Plants, by [author name scrubbed].
|
| 13.
|
Includes wind, solar, biomass, geothermal, and water (hydropower, marine, and hydrokinetic) energy technologies.
|
| 14.
|
More details about DOE—and earlier (pre-1978)—spending for R&D on energy technologies are available in CRS Report RS22858, Renewable Energy R&D Funding History: A Comparison with Funding for Nuclear Energy, Fossil Energy, and Energy Efficiency R&D, by [author name scrubbed].
|
| 15.
|
For an overview of the FY2016 E&W appropriations process, see CRS Report R43966, Energy and Water Development: FY2016 Appropriations, by [author name scrubbed].
|
| 16.
|
Prior to 2005, DOE programs were supported partly by the E&W bill and partly by the Interior appropriations bill.
|
| 17.
|
This comparison was calculated on current dollars for the two fiscal years, not constant (inflation-adjusted) dollars.
|
| 18.
|
A video replay of Mike Carr's presentation at the EESI briefing is available at http://www.eesi.org/briefings/view/022515budget.
|
| 19.
|
A video replay of Secretary Moniz's verbal presentation of the DOE request is available at http://energy.gov/articles/energy-department-presents-fy16-budget-request. The portion on energy programs, including EERE, begins at about nine minutes into the video recording. Also, the printed text of the Secretary's verbal presentation is available at http://energy.gov/articles/secretary-monizs-remarks-presenting-department-s-fy-2016-budget-request-delivered.
|
| 20.
|
The Federal Budget Request for FY2016 would repeal $4 billion in FY2016 fossil fuel tax incentives. This repeal is part of a longer-term proposal to eliminate fossil fuel incentives, which President Obama promised at the G20 Summit held in Brisbane, Australia, November 15-16, 2014. For the annual dollar estimates of proposed cuts to fossil energy incentives see U.S. Department of the Treasury, General Explanations of the Administration's Fiscal Year 2016 Revenue Proposals, Table 2.
|
| 21.
|
See H.Rept. 114-91, Energy and Water Development Appropriations Bill, 2016.
|
| 22.
|
S.Rept. 114-54, Energy and Water Development Appropriations Bill, 2016, May 21, 2015.
|
| 23.
|
The text of the enacted bill is available at https://www.congress.gov/114/bills/hr2029/BILLS-114hr2029enr.pdf.
|
| 24.
|
DOE, FY2016 Budget Request, vol. 3, pp. 15-16, http://energy.gov/sites/prod/files/2015/02/f19/FY2016BudgetVolume3_7.pdf. Also, some cross-cutting initiatives involve coordination with the Advanced Research Projects Agency-Energy (ARPA-E) and other federal agencies.
|
| 25.
|
At high pressure, CO2 has a higher density than steam, giving it a high power density. This crosscut involves $44 million for a 10-mw demonstration project. For details, see DOE, Project Profile: 10-Megawatt Supercritical Carbon Dioxide Turbine, http://energy.gov/eere/sunshot/project-profile-10-megawatt-supercritical-carbon-dioxide-turbine.
|
| 26.
|
For more about SubTER, see DOE, DOE Crosscutting Subsurface Initiative, http://www.energy.gov/sites/prod/files/2014/12/f19/DOE-SubTER%20AGU%20town%20hall.pdf.
|
| 27.
|
For more details see DOE, The Water-Energy Nexus: Challenges and Opportunities, http://energy.gov/downloads/water-energy-nexus-challenges-and-opportunities.
|
| 28.
|
This crosscut is led by the Office of Electricity Delivery and Energy Reliability (OE). More details at DOE, Cybersecurity, http://energy.gov/oe/services/cybersecurity.
|
| 29.
|
The Administration proposed the Grid Modernization Initiative in 2011 (http://www.whitehouse.gov/sites/default/files/microsites/ostp/smart-grid-press-release-6-13-2011.pdf). The Energy Independence and Security Act (EISA, Title 13) made OE the lead DOE office for this initiative (http://energy.gov/oe/services/technology-development/smart-grid). The EERE role is described in a 2014 plan http://www.nrel.gov/esi/pdfs/eere_grid_integration_multi_year_program_plan.pdf.
|
| 30.
|
DOE created the Grid Tech Team to develop a stronger and more extensive network of public-private partnerships to ease the transition to a more modern grid. DOE, EDER, DOE Grid Tech Team, http://energy.gov/oe/services/doe-grid-tech-team.
|
| 31.
|
For more details, see EV Everywhere: Grand Challenge Blueprint, January 2013, http://energy.gov/sites/prod/files/2014/02/f8/eveverywhere_blueprint.pdf.
|
| 32.
|
For more about SunShot, see (1) this report's section on Solar Energy, (2) p. 6 of the budget request for FY2014 at http://energy.gov/sites/prod/files/2013/04/f0/Volume3_1.pdf, and (3) DOE's SunShot program site at http://energy.gov/eere/sunshot/sunshot-initiative.
|
| 33.
|
LED is an abbreviation for light-emitting diode, a form of solid state lighting.
|
| 34.
|
For more about CEMI, see (1) this report's section on Advanced Manufacturing, (2) p. 14 of the budget request for FY2015 at http://energy.gov/sites/prod/files/2014/04/f14/Volume%203.pdf, and (3) the EERE program site at http://energy.gov/eere/cemi/clean-energy-manufacturing-initiative.
|
| 35.
|
For more about wide bandgap semiconductors, see (1) p. 14 of the budget request for FY2015 at http://energy.gov/sites/prod/files/2014/04/f14/Volume%203.pdf, (2) p. 6 of the request for FY2014 at http://energy.gov/sites/prod/files/2013/04/f0/Volume3_1.pdf, (3) the EERE program site at http://manufacturing.gov/docs/wide_bandgap_semiconductors.pdf, and (4) the EERE program site at http://energy.gov/articles/factsheet-next-generation-power-electronics-manufacturing-innovation-institute.
|
| 36.
|
For more details, see DOE, Factsheet: Next Generation Power Electronics Manufacturing Innovation Institute, 2014, http://energy.gov/articles/factsheet-next-generation-power-electronics-manufacturing-innovation-institute.
|
| 37.
|
The Hydrogen/Fuel Cell program is covered in DOE, FY2016 Budget Request, pp. 74-100. Note: This page reference is for DOE's PDF file available on the web—the printed version has slightly different pagination.
|
| 38.
|
The Bioenergy program is covered in DOE, FY2016 Budget Request, pp. 52-73.
|
| 39.
|
Unless otherwise noted, all comparisons of the FY2016 request with the FY2015 appropriation will employ current dollars for each year—not constant (inflation-adjusted) dollars.
|
| 40.
|
The Vehicle Technologies program is covered in DOE, FY2016 Budget Request, pp. 19-51.
|
| 41.
|
For example, the production cost for present batteries is about $300 for each kwh of battery capacity. So, a battery capable of generating 25 kwh of motive force energy would cost about $7,500 ($300 multiplied by 25) to produce. DOE's goal for 2022 is to reduce that battery production cost to about $3,125 ($125 multiplied by 25).
|
| 42.
|
The Solar Energy program is covered in DOE, FY2016 Budget Request, pp. 101-124.
|
| 43.
|
The Wind Energy program is covered in DOE, FY2016 Budget Request, pp. 125-150.
|
| 44.
|
Levelized cost of electricity (LCOE) is often cited as a convenient summary measure of the overall competiveness of different generating technologies. It represents the per kilowatt-hour cost (in constant dollars) of building and operating a generating plant over an assumed financial life and duty cycle. DOE, Energy Information Administration (EIA), Levelized Cost and Levelized Avoided Cost of New Generation Resources in the Annual Energy Outlook 2014, http://www.eia.gov/forecasts/aeo/electricity_generation.cfm.
|
| 45.
|
In its budget request for FY2014, DOE proposed specific LCOE goals of 5.7 cents/kilowatt-hour (kwh) by 2020 and 4.2 cents/kwh by 2030. That goal for 2020 may have already been reached in some locations.
|
| 46.
|
DOE released an update to its analysis of long-term wind energy development goals in early 2015, see DOE, WindVision: A New Era for Wind Power in the United States, March 2015, http://energy.gov/eere/wind/wind-vision.
|
| 47.
|
The Geothermal Technologies program is covered in DOE, FY2016 Budget Request, pp. 167-190.
|
| 48.
|
One gigawatt is equal to 1 billion watts, which is the same amount as 1 million kilowatts.
|
| 49.
|
EGS are engineered reservoirs. Pressurized fluid is injected into hot rock to open existing fractures. The increased permeability lets fluid circulate into the production well.
|
| 50.
|
DOE, Idaho National Laboratory, The Future of Geothermal Energy, 2006 https://mitei.mit.edu/system/files/geothermal-energy-full.pdf.
|
| 51.
|
Enhanced Geothermal System (EGS) projects can be divided into three categories: Infield, Nearfield, and Greenfield projects. Infield projects are located within an unproductive portion of an operational hydrothermal field. Nearfield EGS projects lie on the margins of an existing hydrothermal field. Greenfield projects are geothermal resources engineered where no geothermal development has occurred previously. DOE estimates that the Greenfield resource has a technical potential of more than 500 gw.
|
| 52.
|
The concept of "play fairway analysis" has been used to identify potential locations of blind hydrothermal systems and to describe geothermal opportunities in rift-zone settings. Borrowed from the petroleum industry, this tool incorporates the regional or basin-wide distribution of known geologic factors besides heat flow that control the occurrence of a particular example of a geothermal system. PFA assesses exploration risk and the probability of finding new resources on a regional scale, resulting in maps and studies that reduce the industry's drilling and development risks. For more details, see DOE, Play Fairway Analysis, http://energy.gov/eere/geothermal/play-fairway-analysis.
|
| 53.
|
This is a site characterization activity for the Frontier Observatory for Research in Geothermal Energy (FORGE). FORGE is a dedicated site that enables testing of new technologies and techniques.
|
| 54.
|
As part of its participation in the supercritical carbon dioxide (sCO2) crosscutting activity, the increase would support further testing of CO2 as a geothermal working fluid. This research aims to couple CO2 sequestration with geothermal energy production.
|
| 55.
|
For one discussion of the debate, see Renewable Energy World, Is Fracking for Enhanced Geothermal Systems the Same as Fracking for Natural Gas?, 2013 http://www.renewableenergyworld.com/rea/news/article/2013/07/is-fracking-for-enhanced-geothermal-systems-the-same-as-fracking-for-natural-gas.
|
| 56.
|
The DOE seismicity protocol is available at http://www1.eere.energy.gov/geothermal/pdfs/geothermal_seismicity_protocol_012012.pdf.
|
| 57.
|
DOE, Best Practices for Geothermal Power Risk Reduction Workshop Follow-Up Manual, http://geo-energy.org/reports/Geothermal%20Best%20Practices%20Publication%20Final%20CL188154847.pdf. As an example of best practices development, DOE cites current work at its proof-of-concept Newberry project in Oregon.
|
| 58.
|
The Water Power program is covered in DOE, FY2016 Budget Request, pp. 151-166.
|
| 59.
|
An estimate of "technical potential" is always larger than the amount of "economically developable" potential. For more explanation of these concepts, see DOE, Hydropower Resource Assessment and Characterization http://energy.gov/eere/water/hydropower-resource-assessment-and-characterization and see DOE, Marine and Hydrokinetic Resource Assessment and Characterization http://energy.gov/eere/water/marine-and-hydrokinetic-resource-assessment-and-characterization.
|
| 60.
|
The Building Technologies program is covered in DOE, FY2016 Budget Request, pp. 232-262. For a discussion of major long-term barriers to buildings energy efficiency, see CRS Report R40670, Energy Efficiency in Buildings: Critical Barriers and Congressional Policy, by [author name scrubbed], [author name scrubbed], and [author name scrubbed].
|
| 61.
|
HVAC is an abbreviation for heating, ventilation, and air conditioning equipment.
|
| 62.
|
The Advanced Manufacturing program is covered in DOE, FY2016 Budget Request, pp. 190-206.
|
| 63.
|
DOE, EERE-Advanced Manufacturing Office, FY14 Budget At-a-Glance, http://www1.eere.energy.gov/office_eere/pdfs/budget/manufacturing_ataglance_2014.pdf. The 40 gw target would amount to a 50% increase in the total amount that was operating as of 2012. For more details, see DOE, Combined Heat and Power: A Clean Energy Solution, 2012 http://energy.gov/sites/prod/files/2013/11/f4/chp_clean_energy_solution.pdf.
|
| 64.
|
The CEMIs are part of the President's National Network for Manufacturing Innovation (NNMI). For more about NNMI see CRS Report R42625, The Obama Administration's Proposal to Establish a National Network for Manufacturing Innovation, by [author name scrubbed]
|
| 65.
|
For the NNMI, there were (at the end of 2014) nine institutes in place, and there is an overall goal to establish a total of 45 institutes over 10 years.
|
| 66.
|
Going forward, DOE expects to establish CEMIs as an alternative to the concept of "manufacturing demonstration facilities" (MDFs), which it implemented in FY2012 with the establishment of the Critical Materials Hub (discussed in the next paragraph). DOE's Oak Ridge National Laboratory is the home for AMO's first MDF focused on additive manufacturing and low-cost carbon fiber. For more on MDFs, see http://www1.eere.energy.gov/manufacturing/rd/m/mdf.html.
|
| 67.
|
For more about CEMIs, see DOE's website at http://energy.gov/eere/cemi/clean-energy-manufacturing-initiative.
|
| 68.
|
The Hub also supports materials needs for defense and other strategic industries.
|
| 69.
|
The FEMP program is covered in DOE, FY2016 Budget Request, pp. 207-231.
|
| 70.
|
For example, see The White House, Executive Order – Planning for Federal Sustainability in the Next Decade, March 19, 2015, https://www.whitehouse.gov/the-press-office/2015/03/19/executive-order-planning-federal-sustainability-next-decade.
|
| 71.
|
DOE, FY2016 Budget Request, p. 212.
|
| 72.
|
DOE, FY2016 Budget Request, p. 207.
|
| 73.
|
The Weatherization Grants program is covered in DOE, FY2016 Budget Request, pp. 267-270.
|
| 74.
|
For more details about the program, see CRS Report R42147, DOE Weatherization Program: A Review of Funding, Performance, and Cost-Effectiveness Studies, by [author name scrubbed].
|
| 75.
|
The estimated increment of retrofits that would be attained with the $19 million increase is based on the DOE estimate that each household retrofit costs about $6,000.
|
| 76.
|
More than half of low-income residents live in multi-family buildings.
|
| 77.
|
The State Energy Grants program is covered in DOE, FY2016 Budget Request, pp. 271-273.
|
| 78.
|
The proposed Local Energy Grants program is covered in DOE, FY2016 Budget Request, pp. 274-276.
|
| 79.
|
The Program Direction activity is covered in DOE, FY2016 Budget Request, pp. 277-281.
|
| 80.
|
Strategic Programs are covered in DOE, FY2016 Budget Request, pp. 282-297.
|
| 81.
|
Executive Order M-13-13.
|
| 82.
|
The Decathlon is an annual design/build competition for solar-powered homes that involves student teams from colleges and universities. The transfer is expected to yield better coordination with education and deployment activities.
|
, by Fred Sissine.
Author Contact Information
Fred Sissine
Specialist in Energy Policy
fsissine@crs.loc.gov, 7-7039
Congressional Research Service
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