DOE Energy Efficiency and Renewable Energy (EERE) Appropriations, FY2025

The U.S. Department of Energy's (DOE's) Office of Energy Efficiency and Renewable Energy (EERE) is responsible for renewable energy and end-use energy efficiency technology development. Other activities include issuing grants for home energy efficiency and state energy planning, establishing minimum energy conservation standards for appliances and equipment, and providing technical support.

EERE collaborates with industry, academia, national laboratories, and others to conduct and support research, development, demonstration, and deployment activities. EERE also manages programs that support state and local governments, tribes, and schools. Further, EERE oversees and supports the research and infrastructure of the National Renewable Energy Laboratory, including its research and development on technologies for renewable energy and energy efficiency.

EERE Appropriations

EERE generally receives funding through the annual Energy and Water Development and Related Agencies (EWD) appropriations bill. FY2024 EWD funding was enacted as Division D of the Consolidated Appropriations Act, 2024 (P.L. 118-42). Division D included $3.460 billion for EERE, the same as in FY2023 in the Consolidated Appropriations Act, 2023 (P.L. 117-328).

In addition, EERE received funding through the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58). IIJA provided a total of $16.264 billion in additional emergency appropriations for EERE, of which $1.945 billion is for FY2025 (see Table 1). EERE also received $17.962 billion in additional funding through P.L. 117-169 (known as the Inflation Reduction Act of 2022, or IRA) in FY2022, expiring at the end of FY2026, FY2027, FY2029, or FY2031, depending on the provision.

Executive Branch Actions

For FY2025, the Biden Administration requested $3.118 billion for EERE, a 9.9% decrease versus FY2024 enacted of $3.460 billion. The FY2025 request also proposed the creation of three new accounts totaling $751.4 million, additional to the EERE money and corresponding to activities managed by the Under Secretary for Infrastructure (designated as "S3" in the DOE organization)—a position DOE created in FY2023. These proposed accounts are the Office of State and Community Energy Programs (SCEP), the Office of Manufacturing and Energy Supply Chains (MESC), and the Federal Energy Management Program (FEMP), which were previously funded within the EERE account. The total request for FY2025, including the newly proposed accounts, was $3.869 billion—an 11.8% increase over the FY2024 enacted level. Program direction for all four accounts in the FY2025 budget request comprised 7.0% of the total request.

Overall, DOE's stated goal for EERE funding is to invest in "programmatic priority areas for lowering the U.S. greenhouse gas (GHG) profile." Specific proposed funding increases were aimed at decarbonization activities in the electricity sector, the transportation industry, and energy-intensive industries; reducing the carbon footprint of buildings; and energy-related aspects of the agriculture sector, especially the energy-water nexus. Other priorities include ensuring economic benefits go to communities that might be impacted by DOE's envisaged transition of the energy system or that might be disproportionately affected by pollution.

Legislative Actions

The Full-Year Continuing Appropriations and Extensions Act, 2025 (P.L. 119-4) provides annual appropriations for FY2025 at the FY2024 level for EERE. The act states that FY2025 appropriations are subject to "the authority and conditions provided in applicable appropriations Acts for fiscal year 2024," such as funding tables in explanatory statements and committee reports, unless otherwise specified. The House Appropriations Committee-reported EWD bill (H.R. 8997) would have appropriated a net total of $1.960 billion for EERE "after accounting for budget structure changes." H.Rept. 118-580, which accompanied H.R. 8997, would have directed DOE to use $803.7 million in prior-year balances from "recent supplemental bills." In the report, the committee had recommended $2.764 billion in gross budget authority. After applying the prior year balances, the bill included net budget authority of $1.960 billion.

The Senate Appropriations Committee-reported EWD bill, S. 4927, would have appropriated $3.440 billion for the EERE account plus $20 million for the MESC account proposed by DOE, in total equaling the FY2024 enacted level for the EERE account.