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The President’s FY2018 Budget Request for the Department of Energy

Changes from March 24, 2017 to June 5, 2017

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Overview

The President's fiscal year (FY) 2018 budget request, America First: A Budget Blueprint to Make America Great AgainBudget of the U.S. Government: A New Foundation for American Greatness, includes $28.0 billion for the Department of Energy (DOE), $12.7 billion (5.68.8%) less than the FY2016FY2017 enacted level of $29appropriations of $30.7 billion (see P.L. 115-31 and Division D Explanatory Statement).7 billion. While this request would reduce the total budget for DOE, it would increase overall funding for the National Nuclear Security Administration (NNSA) andNNSA) and increase funding for cleanup programs within the Office of Environmental Management. The request would reduce funding for the Office of Science; the offices ofOffices of Science, Energy Efficiency and Renewable Energy (EEREEERE), Nuclear Energy (NE), and NE), Electricity Delivery and Energy Reliability (OE); andOE), and Fossil Energy (including the Fossil Energy Research and Development ([R&D) program (herein referred to as "selected energy offices and programs") and would eliminate] program). It would reduce funding for the Advanced Research Projects Agency-Energy (ARPA-E),) to wind down operations in FY2018 for cessation of its functions in FY2019, and would eliminate funding for two programs within EERE—the Weatherization Assistance Program, and State Energy Program, —and two programs within the Loan Program Office—Title XVII Innovative Technology Loan Guarantee Program, (Title XVII Loan Program) and Advanced Technology Vehicle Manufacturing (ATVMATVM) Loan Program in FY2018. (See Figure 1.)

Figure 1. Department of Energy Budget Comparison

FY2016 Enacted vs. Approximate FY2018 Request

Source: Office of Management and Budget, The White House, America First: A Budget Blueprint to Make America Great Again, March 2017; S.Rept. 114-236.

Notes: FY2016 enacted appropriations are used for comparison because FY2017 appropriations are currently provided by a part-year continuing resolution (P.L. 114-254) that expires on April 28, 2017. It is assumed that FY2016 spending would represent annualized FY2017 spending referenced in the budget blueprint. FY2018 requested amounts are approximations. "Other" refers to programs and expenditures not explicitly referenced in the President's FY2018 budget blueprint. "Energy" refers to the officesFY2018 request from DOE, FY2018 Congressional Budget Request: Budget in Brief (May 2017); FY2017 and FY2016 enacted from P.L. 115-31 Division D Explanatory Statement. Notes: "Other" refers to programs and funding not within the specified categories. "Energy" refers to the Offices of EERE, NE, OE, and Fossil Energy (FE), which includes Fossil Energy R&D. "Science" refers to the Office of Science.

Comparison with FY2016 and FY2017 Enacted Appropriations

Proposed changes to the DOE budget are illustrated in Figure 1, which compares FY2016 and FY2017 enacted levels to the approximate FY2018 request. The requested increase in NNSA funding for FY2018 is $1.4 billion (11FY2018 request for NNSA is $13.9 billion (an 8% increase over FY2016FY2017 enacted). AdditionallyAmong other increases, the budget request would provide $120 million to restart licensing activities for the proposed Yucca Mountain nuclear waste repository and to initiate an interim nuclear waste storage program. The Environmental Management budget request of $6.5 billion is an increase of $200-$30088 million (4-5% over FY2016 enacted).

1% over FY2017). This request also would eliminate funding for the defense contribution to the Uranium Enrichment Decontamination & Decommissioning Fund, for which Congress appropriated $563 million in FY2017.

The Office of Science would be reduced by approximately $900$919 million (17%) to approximately $4.45$4.5 billion from the enacted FY2016FY2017 level of $5.354 billion. According to the request, this funding would support investment in the highest priority basic science research, energy R&D, and operation and maintenance of scientific facilities.

The budget would request a $2 billion (48%) decrease for selected energy offices and programs. For comparison, these energy offices and programs received $4.1 billion in FY2016. The FY2018 approximate request of $2.1 billion would focus funding on limited, early-stage applied energy research and development. Twofunding would focus on the core mission of conducting cutting-edge, early-stage research. The budget request would provide $1.9 billion for energy programs as defined in Table 1. These energy programs received $4.2 billion in FY2017. The FY2018 request is a $2.3 billion (54%) decrease. The request decreases funding broadly across energy programs. Funding for two programs within EERE would be eliminated: the : Weatherization Assistance Program and the State Energy Program.

Other activities that would be eliminated under the FY2018 budget request include Advanced Research Projects Agency-Energy (ARPA-E), Title 17 Innovative Technology Loan Guarantee Program, and ATVM Loan Program.

The request would terminate funding for the ARPA-E while providing $20 million for federal staff support and reallocating $45 million in prior-year balances to oversee existing awards to completion. Funding would also be eliminated under the request for the Title XVII Loan Program, and the ATVM Loan Program.

Table 1 shows a summary of changes included in the request.

Table 1. Proposed Changes to Selected Offices and Programs in the Approximate President's FY2018 Request

compared to the FY2016 and FY2017 enacted appropriations. Table 1. FY2018 Request for Selected DOE Offices and Programs

(Dollars in Millions)

$12,527

88

1,939

228

2,100

0

0

Office/Program

FY2016 Enacted

Approximate FY2017 Enacted FY2018 Request

Approximate Change

Requested Change from FY2017
 

 

 

Dollars

 

Percent

Dollars

Increases

Percent

NNSA

 

 

 

 

NNSA

$12,527

938

~$13,900

931

~$1,400

$993

~118%

Environmental Management

6,218

6,500

200-300

420

6,508

4-5

1

Nuclear Waste Disposal

0

120

0

120

New

120

New

Reductions

 

 

 

 

Office of Science

5,350

5,392

4,500

473

(900919)

(17)

Energy Programs

Weatherization Assistance Program

State Energy Program

4,131

214.6

50

4,131

4,249

(2,310)

(54)

Weatherization Assistance Program

214.6

(2,000)

(214.6)

(50)

(48)

0

(100)

228)

(100)

Eliminations

State Energy Program
 

50

 

50

 

0

 

(50)

(100)

ARPA-E

291

0

306

20

(291286)

(10093)

ATVM Loan Program

6

5

0

(65)

(100)

Title XVII Loan Guarantee

Program

17

7

0

(177)

(100)

Source: Office of Management and Budget, The White House, America First: A Budget Blueprint to Make America Great Again, March 2017; S.Rept. 114-236.

Notes: In some cases, the President's Blueprint specifies an approximate increase or decrease. These increases and decreases are indicated with varying degrees of precision and were added to or subtracted from the FY2016 enacted to arrive at the approximate and rounded FY2018 request. The exception to this is the approximate and rounded change range presented for Environmental Management as the approximate FY2018 request was specifically mentioned. Parentheses (DOE, FY2018 Congressional Budget Request: Budget in Brief (May 2017); P.L. 115-31 Division D Explanatory Statement. Notes: Parentheses ( ) indicate negative numbers. Energy Programs refers to the officesOffices of EERE, NE, and OE, and FE, which includes Fossil Energy R&D.

Issues and Considerations

Limited information is currently available about the details of the FY2018 budget request and how proposed funding reductions would be applied to specific programs within DOE. Funding reductions specified for energy programs only account for $264.6 million of the $2 billion overall reduction sought for these programs. It is uncertain how overall reductions would be allocated and prioritized among individual offices, programs, or activities.

The proposed elimination of the Title XVII Loan Guarantee Program and ATVM Loans would affect administration of the programs and preclude any future loans, but would not affect the loans and loan guarantees that have already been issued. Much of the Title XVII administrative budget is offset by fees collected from borrowers and applicants, and one of the administrative functions of the office is to monitor the performance of outstanding loans and loan guarantees. The budget request does not provide details regarding how the existing loan and loan guarantee portfolio would be monitored if these cuts were to proceed as proposed.

ARPA-E obligates the entire amount of funding for multi-year projects in the year of the award. For example, projects awarded in FY2016 are funded in their entirety with FY2016 funds although funds are often distributed over a multi-year period as projects proceed and milestones are met. The budget request does not describe how the administration of remaining funds to existing projects would be managed if the proposed elimination were to proceed.

For additional information regarding FY2017 appropriations for DOE, see CRS Report R44465, Energy and Water Development: FY2017 Appropriations.

Potential Issues

The President's FY2018 request would reduce funding for energy programs within the DOE. Under the request, EERE would receive funding at approximately 30% of the FY2017 enacted level. The budget request for energy programs would provide funding for approximately 290 fewer full time equivalent federal employees than FY2016 enacted levels. Congress may consider the extent that the Administration's priorities as described in the FY2018 request align with congressional priorities for the DOE.

The budget request proposes to eliminate funding for the Title XVII Loan Program and ATVM Loan Program. According to the request, the existing loan portfolio would continue to be managed, and unobligated balances and offsetting fees collected from borrowers would support the administrative functions of the programs. The budget request states its expectation that operations will wind down in FY2018 and any remaining monitoring and closeout functions would be transferred to another office in FY2019.

The FY2018 budget request states that ARPA-E staff will be supported to administer remaining funds for existing projects. ARPA-E obligates the entire amount of funding for multiyear projects in the year of the award. Projects awarded in FY2016 are funded in their entirety with FY2016 funds. Project funds are often spent over a multiyear period. The budget request states its expectation to shut down the office in FY2019.

For additional information, see CRS Report R44465, Energy and Water Development: FY2017 Appropriations.