DOE Office of Electricity Delivery and Energy Reliability: Organization and FY2019 Budget Request

DOE Office of Electricity Delivery and Energy Reliability: Organization and FY2019 Budget Request

April 20, 2018
DOE Office of Electricity Delivery and Energy Reliability:
Organization and FY2019 Budget Request
Overview
Executive Branch Actions
The Department of Energy’s (DOE’s) Office of Electricity
For FY2019, the Trump Administration requested $157
Delivery and Energy Reliability (OE) has the lead role in
million for OE—roughly a 37% reduction from the FY2018
addressing electricity infrastructure issues. Working with
enacted level of $248 million. With the exception of
the Department of Homeland Security, OE seeks to ensure
infrastructure security and energy restoration (which would
security and reliability of critical energy infrastructure (not
rise 50%), the Administration proposes reductions for all
just electric power). The office has a key role in developing
programs, including energy storage, resilient distribution
energy storage, supporting the grid integration of renewable
systems, and transmission reliability, compared to FY2018
energy, and intergovernmental planning for grid
appropriations. The Administration also proposes that OE-
emergencies. Issues for Congress primarily involve the
funded federal full-time equivalent employees (FTEs)
program’s appropriations and potential changes to the
would be reduced from 118 for FY2017 to 99 for
organizational structure and priorities of OE.
FY2019—roughly a 16% reduction (FTEs for FY2018
enacted not reported).
Existing Organization and Function
OE manages both research and development (R&D)
The FY2019 request proposes to split the Electricity
programs and deployment programs. The largest share of
Delivery and Energy Reliability appropriation into two
OE funding (e.g., about 80% of the FY2018 appropriation)
appropriations: Electricity Delivery; and Cybersecurity,
goes to R&D on technology to improve grid reliability,
Energy Security, and Energy Reliability (CESER). The
resiliency, security, efficiency, flexibility, and
request states that proposing a separate account for CESER
“supports the Administration’s commitment to protecting
controllability. The R&D programs are usually conducted
in cost-shared partnership with private sector firms. The
energy infrastructure security.”
remainder of OE funding (e.g., about 20% of the FY2018
appropriation) goes to a variety of planning and other
Legislative Issues
operational areas. Deployment and technical assistance
There are a number of issues related to DOE’s work on
programs are conducted mainly with state and tribal
electricity delivery and energy reliability for consideration
governments. Each OE program office has its own set of
in the 115th Congress. Funding of OE for FY2019 is likely
goals and objectives. The office plays the central role in
to be a key issue. Concerns may include not only the level
two of DOE’s broad cross-cutting initiatives: grid
of OE appropriations, but also which activities OE should
modernization and cybersecurity.
support. Congress might question whether the goals of the
office can be met with the proposed reorganization and
In 2007, DOE established a new Assistant Secretary for OE
funding reductions in the Administration’s request.
and, thereby, elevated the office to an administrative status
equal to that of the major energy technologies (nuclear,
In addition to appropriations, several bills before the 115th
fossil, renewables). OE currently has five deputy assistant
Congress would propose changes to DOE’s activities within
secretaries, each of whom reports to the Assistant Secretary.
the electricity delivery and energy reliability space.
The corresponding five offices are: Power Systems
 H.R. 4120 would establish an interdisciplinary research,
Engineering R&D, National Electricity Delivery,
development, and demonstration program (RD&D) to
Infrastructure Security and Energy Restoration, Energy
improve the cybersecurity and cyberresiliency of the
Infrastructure Modeling and Analysis, and Advanced Grid
electric grid.
Integration.
OE Appropriations
 H.R. 5174 would create an assistant secretary position at
DOE to focus on emergencies and security.
OE receives funding from the annual Energy and Water
Development (E&W) appropriations bill. Under the
 H.R. 5239 would establish a voluntary Cyber Sense
Consolidated Appropriations Act, 2018, P.L. 115-141, OE
program at DOE to identify and promote cybersecure
will receive $248 million for FY2018, approximately $18
products for use in the bulk power system.
million more than the enacted FY2017 level of $230
million (the Consolidated Appropriations Act of 2017, P.L.
 H.R. 5240 would create a program at DOE to promote
115-31, Division D).
and advance physical security and cybersecurity of
electric utilities and prioritize small or rural utilities.
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 S. 1460 would address numerous energy and natural
 S. 2444 would create new programs at DOE to address
resources issues and includes provisions that would
vulnerabilities to the power system. It is related to S.
establish RD&D priorities related to energy sector
1460.
cybersecurity and cyberresilience, grid energy storage,
grid modeling, micro-grid systems, grid modernization,
 S. 2445 would promote new technologies related to
and evaluating grid performance.
microgrids and electric cars. It is also related to S. 1460.


S. 1851 would establish an energy storage RD&D
program and technical assistance and grant program at

DOE.

Table 1. OE FY2017-FY2018 Enacted Appropriations and FY2019 Budget Request
(in thousands of dollars)
Requested Change
from FY2018

FY2017 Enacted
FY2018 Enacted
FY2019 Request
Dollars
Percent
OE, Total
230,000
248,329
157,109
-91,220
-37%
Electricity Delivery

Transmission Reliabilitya
36,000
39,000
13,000
-26,000
-67%
Resilient Distribution Systems
50,000
38,000
10,000
-28,000
-74%
Energy Storage
31,000
41,000
8,000
-33,000
-81%
Transformer Resilience and
6,000
7,000
5,000
-2,000
-29%
Advanced Components
Transmission Permitting and
7,500
7,000
6,000
-1,000
-14%
Technical Assistance
CESER

Cybersecurity for Energy
62,000
75,829
70,000
-5,829
-8%
Delivery Systems
Infrastructure Security and
9,000
12,000
18,000
6,000
50%
Energy Restoration
Program Direction
28,500
28,500
27,109
-1,391
-5%
Program Direction, Electricity
—
—
19,309
—
—
Delivery
Program Direction, CESER
—
—
7,800
—
—
Source: DOE, FY2019 Budget Request vol. 3, part 1 (March 2018). P.L. 115-141 Division D Explanatory Statement.
Notes: OE = DOE’s Office of Electricity Delivery and Energy Reliability; Electricity Delivery = Proposed Office of Electricity Delivery; CESER =
Proposed Office of Cybersecurity, Energy Security, and Emergency Response. The FY2019 Budget Request also includes $415,000 in rescissions
of prior year unobligated balances for FY2017 that are not included in the table.
a. Transmission Reliability is titled Transmission Reliability and Resilience in the FY2019 Budget Request.

IF10874
Corrie E. Clark, Analyst in Energy Policy

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DOE Office of Electricity Delivery and Energy Reliability: Organization and FY2019 Budget Request

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