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The U.S. Department of Energy's (DOE's) Office of Energy Efficiency and Renewable Energy (EERE) is the principal government agency responsible for renewable energy technologies and energy efficiency efforts. EERE works with industry, academia, national laboratories, and others to conduct research and development (R&D) and to issue grants to state governments. EERE oversees nearly a dozen technologies and programs—from vehicle technologies to solar energy to advanced manufacturing to weatherization and intergovernmental programs—each with its own respective mission and program goals.
EERE receives funding from the annual energy and water development (E&W) appropriations bill. At issue for the 115th Congress is not only the level of EERE appropriations but also which activities EERE should support, including whether to continue support for specific initiatives and programs. On March 16, 2017, the Trump Administration released a budget blueprint for FY2018. The blueprint states that funding for EERE would focus on "limited, early-stage applied energy research and development activities where the Federal role is stronger." The blueprint requests $28.0 billion for DOE, a decrease of $1.7 billion, or 5.6%, from the FY2017 annualized continuing resolution level. The blueprint does not specify how much of the proposed $1.7 billion cut would apply to EERE programs. The blueprint specified that the Trump Administration's request includes two specific program eliminations: the Weatherization Assistance Program and the State Energy Program, which received FY2016 appropriations of $211.6 million and $50.0 million, respectively. The Trump Administration also requested an $18 billion decrease in nondefense appropriations for FY2017; it is not clear how such a cut would apply to EERE.
For FY2017, the Obama Administration requested For FY2017, the Administration is requesting $2.9 billion of discretionary funding for EERE and $1.3 billion of mandatory funding for a new program, bringing the total FY2017 budget request to $4.2 billion. This total request, if enacted, would be an increase of $2.2 billion (104%) over the enacted FY2016 level of $2.1 billion (the Consolidated Appropriations Act, 2016; H.R. 2029; P.L. 114-113, Division D). The $2.9 billion of discretionary funding requested would be an increase of $829 million (40%) over the FY2016 enacted level of $2.1 billion. The bulk of the discretionary portion of the request would be split among three areas: nearly 32% for energy efficiency programs, about 21% for renewable energy programs, and about 29% for sustainable transportation programs. The discretionary funding portion of the request is nearly 10% of the $30.2 billion discretionary portion of the FY2017 request for DOE.
The Obama EERE request includesincluded new and ongoing efforts that range in scale and cost. EERE would continue to support the EV Everywhere Grand Challenge, concerning the adoption and use of plug-in electric vehicles; the SunShot Initiative to make solar energy cost-competitive by 2020; and the establishment of energy efficiency requirements for equipment and appliances. With the discretionary funding, EERE is requestingrequested $40 million to establish a new R&D program focused on reducing the climate impacts of heating, ventilation, and air conditioning systems. Further, EERE is requestingthe Obama Administration requested $215 million for a new EERE Crosscutting Innovation Initiatives program, which has several goals, including the establishment of regionally focused clean energy innovation partnerships across the country and the acceleration of next-generation clean energy technology pathways.
A relatively significant new measure contained in the Obama budget request iswas $1.3 billion in mandatory funding for EERE's portion of the Obama Administration's 21st Century Clean Transportation System—a new multiagency initiative to build a clean transportation system. EERE reports that this initiative willwould "expand investment in transportation technologies of the future; establish regional fueling infrastructure to support the deployment of low-carbon fuels; and accelerate the transition to a cleaner vehicle fleet."
Some in Congress, along with renewable energy and energy efficiency proponents and opponents, and others may express concern about the EERE budget request. The main areas of concern may be the 40% increase in requested discretionary funds, EERE involvement in the 21st Century Clean Transportation System, and the mandatory funding requested for this involvement.
On May 12, 2016, the Senate passed the Energy and Water Development and Related Agencies Appropriations Act, 2017 (H.R. 2028). The bill would providehave provided $2.1 billion for EERE, $825 million below the Obama Administration's FY2017 discretionary request and $3.8 million above the FY2016 enacted level. On May 26, 2016, the House rejected an Energy and Water Development and Related Agencies Appropriations Act for 2017 (H.R. 5055). The bill would have provided $1.8 billion for EERE, $1.1 billion below the Obama Administration's FY2017 discretionary request and $244 million below the FY2016 enacted level.
This report discusses the FY2017 budget request for the U.S. Department of Energy's (DOE's) Office of Energy Efficiency and Renewable Energy (EERE) and the status of FY2017 congressional appropriations for EERE. The Administration requestsas proposed by the Obama Administration in February 2016, the amended FY2017 appropriations request proposed by the Trump Administration in March 2017, and the status of FY2017 congressional appropriations for EERE. It also discusses the Trump Administration's FY2018 budget blueprint released in March 2017 with regard to EERE.
On March 16, 2017, the Trump Administration requested an $18 billion decrease in nondefense appropriations for FY2017.1 It is not clear how such a cut would apply to EERE.2 Additionally, the Administration released a budget blueprint for FY2018.3 The blueprint states that funding for EERE would focus on "limited, early-stage applied energy research and development activities where the Federal role is stronger." The blueprint requests $28.0 billion for DOE, a decrease of $1.7 billion, or 5.6%, from the FY2017 annualized continuing resolution level. The blueprint does not specify how much of the proposed $1.7 billion cut would apply to EERE programs. The blueprint specifies two program eliminations: the Weatherization Assistance Program and the State Energy Program, which received FY2016 appropriations of $211.6 million and $50.0 million, respectively (see Table 1).
In February 2016, the Obama Administration requested both discretionary funding ($2.9 billion) and mandatory funding ($1.3 billion) for EERE for FY2017, for a total of $4.2 billion.14 The total $4.2 billion request is an increase of $2.2 billion (104%) from the enacted FY2016 level of $2.1 billion. The Obama Administration's discretionary portion of the FY2017 request iswas 40% higher than the FY2016 enacted level ($2.1 billion). The Senate-passed energy and water appropriations bill for FY2017 includesincluded $2.1 billion for EERE.2
The funding level Congress decides to provide could impact goals set by EERE, including sustainable transportation goals (e.g., vehicle electrification and biofuels), renewable energy goals (e.g., grid modernization for solar energy, enhanced geothermal technologies), and energy efficiency goals (e.g., establishment of one additional Clean Energy Manufacturing Innovation Institute). It also could affect EERE's involvement in the proposed 21st Century Clean Transportation Plan and EERE assistance with industry competitiveness. This report does not discuss the opportunities, challenges, economic value, or commercial status of the various renewable energy technologies and energy efficiency initiatives selected by EERE, nor does it delve into the goals of the individual EERE programs or congressional oversight of certain EERE issues.36
EERE leads the DOE's effort to accelerate development and facilitate deployment of energy efficiency and renewable energy technologies and market-based solutions intended to strengthen U.S. energy security, environmental quality, and economic vitality. EERE is led by the Assistant Secretary for Energy Efficiency and Renewable Energy, and it is organized into four offices: Office of Transportation, Office of Renewable Power, Office of Energy Efficiency, and Office of Operations.47 EERE contends that it invests in only what it considers to be the highest-impact activities. EERE collaborates with industry, academia, national laboratories, and others to develop technology-specific road maps and then focuses on early stage research and development (R&D), technology validation and risk-reduction activities, and the reduction of market barriers to the adoption of market-ready new technologies. EERE also manages a portfolio of research and development programs that support state and local governments, tribes, and school leaders. In addition, EERE oversees the National Renewable Energy Laboratory (NREL)—the only national laboratory solely dedicated to researching and developing renewable energy and energy efficiency technologies.58
EERE receives its appropriations from the annual energy and water development (E&W) appropriations bill.6 For each of9 During the last several years, DOE has requested increased of the Obama Administration, the budget request was to increase funding to support EERE programs and objectives, and. Congress's response has been to provide funding at levels lower than what was requested. Appropriations for EERE have averaged $1.86 billion annually for the last six years in current dollars (see Table 1). The appropriations are split into four major categories: sustainable transportation, energy efficiency, renewable energy, and corporate support (e.g., program administration). From FY2011 to FY2016, approximately 65% of the appropriations were spent on sustainable transportation and energy efficiency, while approximately 25% of the appropriations were spent on renewable energy and approximately 12% was spent on corporate support.
DOE hasObama Administration Request
The Obama Administration requested $4.2 billion to support EERE programs and objectives for FY2017 ($2.9 billion in discretionary funding and $1.3 billion in mandatory funding). The total $4.2 billion request would represent an increase of $2.2 billion (104%) from the enacted FY2016 level of $2.1 billion.
The discretionary portion of the Obama Administration request, $2.9 billion, would be an increase of $829 million (40%) fromover the FY2016 enacted level of $2.1 billion (see Table 1).710 The discretionary portion of the EERE FY2017 request is approximately 10% of the discretionary portion of the overall DOE FY2017 request of $30.2 billion.811 The FY2017 EERE request would allocate approximately 61% of the appropriations to sustainable transportation and energy efficiency, combined. However, energy efficiency would receive slightly less in its share of the two categories combined than it did in FY2016 (32% in the FY2017 request, as compared with 35% in FY2016). The FY2017 request allocates close to 21% and 10% of the request for renewable energy and corporate support, respectively.
Some of the goals, highlights, and major changes presented in the EERE FY2017 Obama Administration request, as reported by DOE, include the following:
Other Obama Administration EERE initiatives includeincluded technology-to-market activities (e.g., National Incubator Initiative for Clean Energy) and international activities (e.g., expanding the number of Chinese cities using DOE's low-carbon planning tools and conducting demonstration projects featuring low-carbon technologies from U.S. companies). Additionally, under the Obama Administration's FY2017 request, EERE would establish a new crosscutting innovation initiative program introduced as a separate line item in the EERE budget table. The program would focus on providing funding for research, development, and demonstration activities, with the goal of strengthening regional clean energy innovation ecosystems, accelerating next-generation clean energy technology pathways, and encouraging clean energy innovation and commercialization collaborations between the National Laboratories and American entrepreneurs.2629 Approximately 51% of the $215 million requested for the crosscutting innovation initiative would be spent on regional energy innovation partnerships.27
The Obama Administration requested that the new 21st Century Clean Transportation program is, a multiagency effort to, be funded at $320 billion over 10 years. This program aimswould aim to be a key step in "making smart and strategic investments to create a cleaner, more sustainable transportation system," according to the Administration.28."31 The program is to be funded by both a new fee paid by oil companies—a $10 per barrel fee on oil gradually phased in over five years—and "one-time revenues from pro-growth business tax reform."2932 The Administration statesstated that some benefits of the proposed plan include carbon pollution reduction, economic strengthening (i.e., job creation), and transportation expansion.
The EERE FY2017 budget request would provide $1.3 billion of mandatory funding to support the program. More than half, approximately 56%, of the funding would be spent on deployment of low-carbon fueling infrastructure. DOE reports that EERE will seek to support this effort with $11.3 billion over 10 years.3033 EERE participation in the program would include the following activities.31
The Administration is requestingObama Administration requested significantly more funding for EERE compared to the FY2016 enacted appropriations—at least an $829 million increase, and possibly a $2.1 billion increase if the mandatory funding request is taken into account. The funding requested would support numerous programs and activities. The $1.3 billion in mandatory funding requested to support the 21st Century Clean Transportation Plan is part of a multiagency effort that depends on the enactment of a new revenue source. It could be a significant undertaking for EERE to implement the clean transportation plan's activities in addition to current responsibilities given that the funding requested for the plan would represent 64% of the FY2016 EERE enacted appropriations. In addition, it is possible that the plan may involve efforts previously dismissed by Congress. For instance, EERE statesstated that it willwould use the mandatory funding, in part, to "establish regional fueling infrastructure to support the deployment of low-carbon fuels."35 It is not known if EERE considerswould consider blender pumps to be a part of this regional fueling infrastructure. If so, Congress rejected a related effort in the 2014 farm bill (P.L. 113-79) by forbidding the use of Renewable Energy for America Program (REAP) funds to support blender pump installation.3236 Congress may want to examine what impact such a program may have on clean transportation expansion, clean energy sources, or conventional energy sources; how quickly such a program may be implemented; and how effective such a program would be given its scope and that multiple participants—government and others, with various objectives—need to be involved to achieve the proposed outcomes.
The Senate passed the Energy and Water Development and Related Agencies Appropriations Act, 2017 (H.R. 2028) on May 12, 2016. The bill would providehave provided $2.1 billion for EERE, $825 million below the Obama Administration's FY2017 discretionary request and $3.8 million above the FY2016 enacted level. On May 26, 2016, the House rejected an Energy and Water Development and Related Agencies Appropriations Act for 2017 (H.R. 5055). The bill would have provided $1.8 billion for EERE, $1.1 billion below the Obama Administration's FY2017 discretionary request and $244 million below the FY2016 enacted level. Funding is currently being provided by a continuing resolution.
Table 1. EERE FY2011-FY2016 Enacted Appropriations and FY2017 Appropriations Status
(in millions of current dollars)
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FY2011 |
FY2012 |
FY2013 |
FY2014 |
FY2015 |
FY2016 |
FY2017 |
FY2017 House App Com Passed |
FY2017 Senate App Com Passed |
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EERE, Total [Discretionary Funding] |
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Sustainable Transportation |
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Vehicle Technologies |
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Bioenergy Technologiesa |
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Hydrogen and Fuel Cell Technologies |
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Renewable Energy |
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Solar Energy |
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Wind Energy |
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Water Power |
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Geothermal Technologies |
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Energy Efficiency |
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Advanced Manufacturingb |
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Building Technologies |
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Federal Energy Management Program |
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Weatherization and Intergovernmental Programc |
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Weatherization Assistance Program |
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Training and Technical Assistance |
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NREL Site-Wide Facility Report |
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State Energy Program Grants |
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Local Technical Assistance Program |
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Crosscutting Innovation Initiatives |
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Corporate Supportd |
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Facilities and Infrastructure |
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Use of Prior-Year Balances |
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Rescissions |
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EERE [Mandatory Funding] |
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21st Century Clean Transportation Plan Investments |
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EERE, Total [Discretionary + Mandatory Funding] |
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Sources: U.S. Department of Energy, FY2017 Congressional Budget Request, vol. 3 (February 2016); P.L. 114-113 Division D; S.Rept. 114-236; H.Rept. 114-532; H.Rept. 114-91; H.Rept. 113-486; DOE, FY2015 Budget Request vol. 3 (March 2014) (to obtain the FY2013 appropriations that DOE identifies as FY2013 current, or the enacted amount plus or minus any adjustments made since the appropriations bill became law); H.Rept. 112-462; and H.Rept. 112-118.
Notes: Senate-passed detailed funding levels not yet available. EERE = DOE's Office of Energy Efficiency and Renewable Energy; NREL = National Renewable Energy Laboratory.
a.
Biomass & Biorefinery Systems Research and Development, renamed Bioenergy Technologies in FY2014.
b.
Industrial Technologies, renamed Advanced Manufacturing in FY2014.
c.
The Weatherization and Intragovernmental Program included $7 million for tribal energy activities for FY2011, $10 million for FY2012, and $9.4 million for FY2013.
d.
Corporate support includes facilities and infrastructure, program direction, and strategic programs.
Author Contact Information
1. |
The White House, Appropriations Request for Fiscal Year 2017, March 16, 2017.
Due to the limited information available about the Trump Administration's FY2017 appropriations request, this report summarizes the funding request presented by the Obama Administration and compares it to congressional appropriations action. Office of Management and Budget, America First: A Budget Blueprint to Make America Great Again, March 16, 2017. |
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H.R. 2028 |
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For more information on clean energy, energy efficiency, and EERE programs, see CRS Report R44004, DOE's Office of Energy Efficiency and Renewable Energy: FY2016 Appropriations, by |
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DOE was established under the Department of Energy Organization Act of 1977 (P.L. 95-91). Section 203 of the act identifies eight assistant secretary positions and the functions they are to cover. EERE Organization Chart, February 12, 2016. |
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There are other national laboratories that conduct energy efficiency and renewable energy work, such as Lawrence Berkeley National Laboratory and Oak Ridge National Laboratory. |
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The E&W appropriations bill has funded all DOE offices and programs since 2005. Prior to 2005, DOE received its appropriations from both the E&W appropriations bill and the Interior and Related Agencies appropriation bill. |
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DOE, FY2017 Congressional Budget Request, vol. 3 (February 2016). |
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The FY2017 total discretionary funding request for DOE is $30.2 billion and the mandatory portion is $2.3 billion, for a total of $32.5 billion. DOE, FY2017 Summary Control Table by Appropriation, February 2016. |
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The EV Everywhere Grand Challenge is a DOE-wide initiative that seeks to enable the United States to produce a wide array of plug-in electric vehicle models, including plug-in hybrids and all-electric vehicles, that are as affordable and convenient as gasoline-powered vehicles by 2022. |
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This initiative follows the initial SuperTruck program established in 2009 with a challenge by DOE to truck manufacturers and suppliers to improve freight efficiency by 50% compared to a baseline vehicle, among other things. |
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DOE reports that "There is no program within DOE's transportation portfolio directly exploiting these opportunities." DOE, FY2017 Congressional Budget Request, vol. 3 (February 2016), p. 20. |
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Drop-in biofuels are generally described as biofuels that are indistinguishable from conventional petroleum-based fuels that may be used with existing infrastructure with no changes. Funding proposed to be used for cellulosic conversion efforts is not provided as a separate line item in the DOE budget request. For more information on the Advanced Algal Systems subprogram, see |
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Ibid., pp. 51 and 60. |
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A fuel cell uses the |
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Established in 2011, the SunShot Initiative conducts research, manufacturing, and marketing to make solar energy resources in the United States more affordable and accessible. Ibid., pp. 102 and 107. |
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Ibid., p. 130. |
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New stream reach development is hydropower development on U.S. stream segments that do not currently have hydroelectric facilities. For more information, see DOE, New Stream-reach Development: A Comprehensive Assessment of Hydropower Energy Potential in the United States, April 2014; DOE, FY2017 Congressional Budget Request, vol. 3 (February 2016), p. 159. |
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U.S. Department of Energy, FY2017 Congressional Budget Request, vol. 3 (February 2016), p. 163. |
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Ibid., p. 181. |
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DOE reports that the specific technical topic for the additional Clean Energy Manufacturing Innovation Institute will come from the advanced manufacturing challenges identified on page 185 of the 2015 DOE Quadrennial Technology Review. Ibid., p. 200. |
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Ibid., p. 223. |
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Ibid., p. 240. |
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Ibid., p. 242. |
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Weatherization services include a wide variety of energy efficiency measures that encompass the building envelope, its heating and cooling systems, its electrical system, and electricity-consuming appliances (e.g., installing insulation, sealing ducts). Ibid., p. 251. |
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Ibid., p. 260. |
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Ibid., p. 295. |
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DOE reports the regional clean energy innovation partnerships will "fund RD&D [research, development, and demonstration] to address clean energy challenges specific to regional energy resources, customer needs and innovation capabilities of various regions of the country." Ibid., p. 299. |
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The White House, Office of the Press Secretary, "FACT SHEET: President Obama's 21st Century Clean Transportation System," press release, February 4, 2016. Other agencies that |
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Ibid. |
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U.S. Department of Energy, "FY2017 Department of Energy Budget Request Fact Sheet," February 2016. |
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U.S. Department of Energy, FY2017 Congressional Budget Request, vol. 3 (February 2016), p. 310. |
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36.
U.S. Department of Energy, FY2017 Congressional Budget Request, vol. 3 (February 2016), p. 303. |
Blender pumps are fuel dispensers that draw fuel from two separate storage tanks and can dispense preprogrammed blends of those two fuels. For more information, see CRS |