Martin C. Offutt and Corrie E. Clark are the authors of this CRS InFocus report (updated: 23 August 2023): 'DOE Office of Energy Efficiency and Renewable Energy FY2024 Appropriations'.
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The U.S. Department of Energy’s (DOE’s) Office of Energy Efficiency and Renewable Energy (EERE) is responsible for enabling renewable energy and end-use energy efficiency technology development and implementation. Other activities include issuing grants for home energy efficiency and state 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 (NREL) and its research and development on technologies for renewable energy and energy efficiency.
EERE Appropriations
EERE receives funding through the annual Energy and Water Development and Related Agencies (E&W) appropriations bill. Under the Consolidated Appropriations Act, 2023, P.L. 117-328, EERE received $3.46 billion for FY2023, approximately $260 million more than the enacted FY2022 level of $3.20 billion (the Consolidated Appropriations Act, 2022; P.L. 117-103).In addition, EERE received funding through the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58). IIJA provided a total of $16.26 billion in additional emergency appropriations for EERE, of which $1.945 billion is directed to FY2024 (see Table 1). EERE also received $17.96 billion in additional funding through various provisions of P.L. 117-169 (often referred to as the Inflation Reduction Act, or IRA), enacted on August 16, 2022. The IRA funding is available from FY2022 through FY2026, FY2027, FY2029, or FY2031, depending on the provision.
Executive Branch Actions
For FY2024, the Biden Administration requested $3.83 billion for the EERE organization—10.6% higher than the FY2023 enacted level of $3.46 billion. In FY2023, DOE created a position, the Under Secretary for Infrastructure (designated as “S3” in the DOE organization), to manage several programs, including programs previously administered with EERE. Of the $3.83 billion in the FY2024 request for EERE, 5.9% was to be reserved for program direction (i.e., salaries and benefits, travel, support services, and other related expenses). Including current EERE programs proposed to be managed by S3 rather than within the EERE organization, a total of $4.79 billion was requested, a 39% increase from the FY2023 enacted amount.
Overall, DOE’s stated goal for EERE funding is to invest in “programmatic priority areas that are central pillars in lowering the U.S. greenhouse gas (GHG) profile.” Specific proposed funding increases were aimed at decarbonization activities in the electricity sector, transportation, energy- intensive industries, the carbon footprint of buildings, and energy-related aspects of the agriculture sector, especially the energy-water nexus. Other priorities included energy justice efforts under Justice40, an initiative of the Biden Administration in accordance with Executive Order 14008 to prioritize 40% of funding of certain federal investments for disadvantaged communities.
DOE had proposed shifting funding for certain programs outside of EERE to reflect their new functional location in S3, including the Office of Manufacturing and Energy Supply Chains (MESC); Office of State and Community Energy Programs (SCEP); and Office of Federal Energy Management Programs (FEMP). The FY2024 E&W bills approved by both the respective House and Senate committees would continue funding these programs within the EERE appropriations account.
Legislative Actions
Congressional interest in EERE funding includes the large increases proposed in certain program areas.On June 22, 2023, the House Appropriations Committee approved H.R. 4394—Energy and Water Development and Related Agencies Appropriations Act, 2024. The bill would not allow funds to be used for purposes related to increasing an energy efficiency standard on distribution transformers or related to energy conservation standards for natural gas cooking products (e.g., gas stoves). The bill would also rescind the following from the IRA: $1 billion in funding for two programs in support of work by state energy offices aimed at building energy code adoption, $4.5 billion in funding for the High-Efficiency Electric Home Rebate Program, and $200 million in funding to train state energy offices contractors who work in support of the Home Energy Performance-Based, Whole House Rebates.
On July 20, 2023, the Senate Appropriations Committee approved S. 2443—Energy and Water Development and Related Agencies Appropriations Act, 2024. The bill would provide funding for EERE and recommends a separate appropriation for Industrial Emissions and Technology Coordination. The bill also would increase the percentage of funding for program direction for several offices (including EERE) in the IIJA from 3% to 5%.
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