FY2019 Funding for CCS and Other DOE Fossil Energy R&D

FY2019 Funding for CCS and Other DOE Fossil Energy R&D

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Updated July 2, 2018
FY2019 Funding for CCS and Other DOE Fossil Energy R&D
Carbon Capture and Sequestration Overview
carbon storage (Table 1) would receive $40 million total
Carbon capture and sequestration (CCS, sometimes called
under the Administration’s request, compared to nearly
carbon capture and storage) is a process that aims to capture
$200 million for FY2018, an 80% reduction.
man-made carbon dioxide (CO2) at its source and store it to
prevent its release to the atmosphere. CCS could reduce the
The FY2019 budget request would prioritize the Advanced
amount of CO2 emitted to the atmosphere from the burning
Energy Systems (AES) account, requesting $175 million,
of fossil fuels at power plants and other large, industrial
$63 million above the FY2018-enacted amount, nearly a
facilities. An integrated CCS system would include three
44% increase. The budget request indicates that AES would
main steps: (1) separating CO2 from other gases and
focus on six activities: advanced combustion/gasification,
capturing it; (2) purifying, compressing, and transporting
advanced turbines, solid oxide fuel cells, advanced sensors
the CO2 to the sequestration site; and (3) injecting the CO2
and controls, power generation efficiency, and advanced
into subsurface geological reservoirs.
energy materials. Other accounts under the Coal CCS &
Power Systems program area are proposed to be funded
Funding Overview
slightly above or slightly below FY2018 levels, with the
The U.S. Department of Energy (DOE) has supported
exception of CCS activities. Reductions to CCS-related
research and development (R&D) of aspects of the three
funding would comprise nearly all of the proposed
main steps leading to an integrated CCS system since 1997.
decreased funding for activities in the Coal CCS & Power
From FY2012 to FY2018, Congress has provided more
Systems program area.
than $4 billion in appropriations for CCS activities at DOE.
The American Recovery and Reinvestment Act (P.L. 111-
Other Fossil Energy Research & Development
5) provided an additional $3.4 billion to that total.
The budget request for FY2019 proposes to decrease
funding for programs under Other Fossil Energy R&D by
CCS-focused R&D has come to dominate the coal program
nearly $87 million, a 35% reduction compared to FY2018.
area within DOE Fossil Energy Research and Development
Program Direction ($60 million in FY2018) provides DOE
(FER&D) since 2010. However, the Administration’s
headquarters support and federal field and contractor
FY2019 budget request proposes to shift to other priorities,
support of the FER&D programs overall. Program
decreasing the overall FER&D budget by nearly $225
Direction and National Energy Technology Laboratory
million compared to what Congress enacted for FY2018.
(NETL) Coal R&D together provide support to CCS-related
The FY2019 request cites early-stage research as its focus:
activities directly and indirectly.
“This budget request focuses DOE resources toward early-
stage R&D and reflects an increased reliance on the private
The budget request proposes to decrease funding for
sector to fund later-stage research.” The Administration
Natural Gas Technologies and Unconventional Fossil
previously proposed cuts to FER&D in its FY2018 budget
activities compared to what Congress enacted in FY2018,
request; however, Congress increased funding by nearly
from $90 million to $19.5 million for both programs
$59 million (9%) compared to FY2017.
combined. Congress increased funding for those activities
(by $16 million in FY2018 compared to FY2017), which
Table 1 shows funding for DOE CCS programs under
support collaborative research to foster development of
FER&D from FY2012 through FY2018 and includes the
shale gas resources, the reduction of methane emissions
FY2019 budget request. Table 1 groups mostly CCS-
from natural gas infrastructure, and research on gas
related programs under the Coal CCS and Power Systems
hydrates. The budget request proposes to eliminate funding
category and the remainder of fossil energy spending under
for Transformational Coal Pilot programs (called New
Other Fossil Energy R&D. This grouping follows how
Fossil Pilot in FY2017). Congress provided $50 million for
Congress has funded these programs.
the program in FY2017 and $35 million in FY2018.
House-passed FY2019 appropriations legislation would
[Note: In FY2017, Congress rescinded $240 million in
increase overall funding for FER&D by over $58 million
unobligated balances from the total FER&D account. The
compared to FY2018, and $283 million above the
FY2019 Administration request subtracted the rescission
Administration budget request. The Senate-passed version
from the total FY2017 FER&D enacted amount in its
of the bill would fund FER&D at the FY2018 level of $727
budget justification. Table 1 does not show that rescission,
million, $225 million more than the requested amount.
but it reflects what Congress included in its budget
documents for FY2017—$668 million total enacted for
Coal CCS and Power Systems
FER&D. The congressional Joint Explanatory Statement
Compared to the FY2018 total of $727 million enacted for
for FY2017 shows the $240 million rescission offsetting
all FER&D, the FY2019 request of $502 million would be a
DOE’s total appropriations.]
reduction of approximately 31%. Carbon capture and
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link to page 2 FY2019 Funding for CCS and Other DOE Fossil Energy R&D
Table 1. Funding for DOE Fossil Energy Research, Development, and Demonstration Program Areas
(FY2012 through FY2018, including the Administration’s FY2019 budget request)
FY2019
FER&D Coal
Program/
FY2012
FY2013 FY2014
FY2015
FY2016 FY2017
FY2018
Request
Program Areas Activity
($1,000) ($1,000) ($1,000)
($1,000)
($1,000) ($1,000)
($1,000)
($1,000)
Coal CCS and
Carbon Capture
66,986
63,725
92,000
88,000
101,000
101,000
100,671
20,000
Power Systems

Carbon Storagea
112,208
106,745
108,766
100,000
106,000
95,300
98,096
20,000

Advanced Energy
97,169
92,438
99,500
103,000
105,000
105,000
112,000
175,000
Systems

Cross-Cutting
47,946
45,618
41,925
49,000
50,000
45,500
58,350
53,300
Research

Supercritical CO2
—
—
—
10,000
15,000
24,000
24,000
25,000
Technology

NETL Coal R&D
35,011
33,338
50,011
50,000
53,000
53,000
53,000
50,000

Transformational
—
—
—
—
—
—
35,000
0
Coal Pilots
Subtotal Coal
359,320
341,864 392,202
400,000
430,000
423,800
481,117
343,300
Other FER&D
Natural Gas
14,575
13,865
20,600
25,121
43,000
43,000
50,000
5,500
Technologies

Unconventional
4,859
4,621
15,000
4,500
20,321
21,000
40,000
14,000
Fossil

Program Direction 119,929
114,201
120,000
119,000
114,202
60,000
60,000
61,070

Plant and Capital
16,794
15,982
16,032
15,782
15,782
—
—
—

Environmental
7,897
7,515
5,897
5,897
7,995
—
—
—
Restoration

Special Recruitment
700
667
700
700
700
700
700
200

NETL Research &
—
—
—
—
—
43,000
50,000
40,000
Operations

NETL
—
—
—
—
—
40,500
45,000
38,000
Infrastructure

New Fossil Pilot
—
—
—
—
—
50,000
—
—
Subtotal Other
164,754
156,851 178,229
171,000
202,000
258,200
245,700
158,770
FER&D
Rescissions/Use
(187,000)

(14,000)

of Prior-Year
Balances
Total FER&D
337,074
498,715 570,431
571,000
632,000
668,000
726,817
502,070

FY2012-
Grand
$4.004

FY2018
Total
billion
Sources: U.S. Department of Energy annual budget justifications for FY2012 through FY2019; explanatory statement for P.L. 115-141, Division
D (Consolidated Appropriations Act, 2018, https://rules.house.gov/bil /115/hr-1625-sa).
Notes: FER&D = Fossil Energy Research and Development; NETL = National Energy Technology Laboratory; Grand total for FY2012-FY2018
subject to rounding. Amounts provided by P.L. 111-5 are not shown in the table or included in the grand total.
a. The FY2019 request is split: $11 mil ion for carbon storage, $9 mil ion for carbon utilization.

IF10589
Peter Folger, Specialist in Energy Policy

https://crsreports.congress.gov

FY2019 Funding for CCS and Other DOE Fossil Energy R&D

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