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June 28, 2024

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 enabling renewable energy and end-use
energy efficiency technology development and
implementation. 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.
EEEAppropr at onS
EERE generally receives funding through the annual
Energy and Water Development and Related Agencies
(EWD) appropriations bill. 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 receives 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 directed to FY2025 (see Table 2). EERE also
received $17.962 billion in additional funding through P.L.
117-169 (often referred to as the Inflation Reduction Act of
2022, or IRA). The IRA funding is available from FY2022
through either FY2026, FY2027, FY2029, or FY2031,
depending on the provision.
Executive Branch Actons
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 proposes 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 new 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, is $3.869 billion-a 11.8% increase
over the FY2024 enacted level. Program direction for all
four accounts in the FY2025 budget request comprises
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.
Table 1 lists the new accounts proposed by DOE, broken
out by funding for program activities and program
direction, a type of corporate support. Funding for program
direction would increase by $2.8 million over the FY2024
request for the three accounts, despite a proposed decrease
in program activities funding. For the EERE account, DOE
is requesting $194.8 million for program direction.
Table I. DOE's Proposed New Accounts for FY2025
(in millions of dollars)
Program      Program       Total
Name          Activities   Direction
SCEP              534.0        40.0         574.0
MESC              93.4         20.0         113.4
FEMP              46.8         17.2         64.0
Source: DOE FY2025 Congressional justification, DOE/CF-0204,
Volume 3.
Leg    ative Actions
House Appropriations Committee Chairman Tom Cole
announced a top-line amount of $1.960 billion for EERE in
the draft Energy and Water Development and Related
Agencies Appropriations Act, 2025, that was released June
27, 2024. The draft bill, Title III, continues funding MESC,
SCEP, and FEMP within the EERE appropriations account.

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