FY2009 Department of Energy Appropriations (04-11-08) 
The Department of Energy (DOE) programs of interest to the geosciences include programs for renewable energy and activities within the Office of Science, such as the Basic Energy Science program which has a geoscience division. Also of interest is the Yucca Mountain site characterization activities and environmental remediation of the nuclear weapons complex. The priorities of the Department of Energy's (DOE) energy program are to: increase domestic energy production; revolutionize our approach to energy conservation and efficiency; and promote the development of renewable and alternative energy sources. Fossil fuels – coal, oil and natural gas -- currently provide more than 85% of all the energy consumed in the United States, nearly two-thirds of our electricity, and virtually all of our transportation fuels. Moreover, it is likely that the nation’s reliance on fossil fuels to power an expanding economy will increase over at least the next two decades even with aggressive development and deployment of new renewable and nuclear technologies. Because our economic health depends on the continued availability of reliable and affordable fossil fuels, the Department of Energy’s Office of Fossil Energy oversees two major fossil fuel efforts: emergency stockpiles of crude oil and heating oil and research and development of future fossil energy technologies. For analysis of hearings held by Congress on Energy appropriations, click here.
On February 4, 2008, the President' fiscal year (FY) 2009 budget for the Department of Energy (DOE) was revealed by Secretary Samuel Bodman. The President's request of $25 billion for the Department would represent an increase of $1.1 billion above the FY08 appropriation level. The overall increase of 4.7% in the Department's budget compared to FY08 enacted levels is something few agencies are seeing in this time of fiscal constraint. The additional funds are targeted toward coal technologies, nuclear energy programs and U.S. scientific competitiveness through a significant increase for the Office of Science. According to Bodman "this budget furthers President Bush's comprehensive strategy to increase energy, economic, and national security by focusing on accelerating technological breakthroughs, expanding traditional and renewable sources of energy, and increasing investment in scientific discovery and development." While the proposed increases generally elicited positive responses from members of Congress, lawmakers did express concern regarding the decline in funds for the popular weatherization assistance program within the Office of Energy Efficiency and Renewable Energy. Congress will most likely also, haggle with the President on nuclear energy issues, which have mixed support, and the proposed increase in the Strategic Petroleum Reserve to 1.5 billion barrels. Office of Energy Efficiency and Renewable Energy The Chairman of the Senate Energy and Natural Resources Committee, Jeff Bingaman (D-NM) supported the increase for geothermal: "In the case of geothermal energy, I'm pleased that the Administration listened to and worked with Congress to define a new profile for that program in the recent energy bill, and then came through with a good funding proposal in this budget request." The hydrogen and hydropower programs with proposed levels at $146 million and $3 million represent declines of 31% and 70% respectively, compared to FY08. According to DOE, the hydrogen program is being realigned with the deferral of hydrogen production and delivery efforts and instead focuses on the barriers of hydrogen storage. Office of Fossil Energy The proposed budget funnels $632 million in FY09 into the Coal technology program, $85 million into the Clean Coal Initiative, and $156 million into FutureGen. Earlier this month, Secretary Bodman announced that the FutureGen program would be altered from a single facility in Illinois that would have been designed to demonstrate advanced coal-fire electricity generation, hydrogen production, and carbon capture and sequestration to a variety of capture and sequestration projects that will be announced in an upcoming solicitation. The leaders of the Senate Energy and Natural Resources Committee, Senators Bingaman and Domenici, both indicated in press statements that they'd like the Department to explain their reasoning for the programmatic changes in FutureGen. Also, as part of the Department's focus on 'clean' coal technology development the Carbon Sequestration Regional Partnerships are slated to receive $149 million a boost of $30 million in FY09 for continued efforts to inject one million tons of carbon dioxide into various geologic formations. Office of Science The increases across the board in the Office of Science are part of President Bush's American Competitiveness Initiative (ACI) and some of the increases are also consistent with the bipartisan America COMPETES Act. Both have the overarching goal of keeping America the most innovative nation in the world through the strengthening of education and research in science, math and engineering. However, Senator Pete Domenici (R-NM) had the following to say about the implementation of the act into the Department's request. "While I support the substantial increase for the Office of Science, I do plan on questioning the Department about how it plans to integrate the America COMPETES Act within this budget. I had hoped to see specific components of the COMPETES Act more fully funded in this budget request, but many simply are not mentioned. I certainly hope that the Department plans on carrying out the initiatives of this bipartisan law." Office of Environmental Management Office of Civilian Radioactive Waste Management The Nuclear Waste Disposal program would see a $60 million rise in funding compared to FY08 for a total of $247 million. The Defense Nuclear Waste program would also increase in FY09 by 48%, again to $247 million. The $495 million budget proposal for Yucca Mountain will be challenged
by Senate Majority Leader Harry Reid (D-NV), who has sworn to terminate
the project in the appropriations process. Last year, Reid was able
to convince enough legislators to cut $104.5 million from the project,
which puts DOE's June deadline for the submission of a license application
to the Nuclear Regulatory Commission at risk. However, Bodman assured
reporters that DOE plans on moving forward with the Yucca Mountain
Project and plans submit the license application by the end of 2008;
a new timeline and cost of the repository will be released this spring
based on the FY 08 budget.
The Energy and Water Subcommittee of the House Appropriations Committee is chaired by Representative Visclosky (D-IN). Other members include Representatives Edwards (D-TX), Pastor (D-AZ), Berry (B-AR), Fattah (D-PA), Israel (D-NY), Ryan (D-OH), Serrano (D-NY), Olver (D-MA), Obey (D-WI), Hobson (R-OH), Wamp (R-TN), Emerson (R-MO), Doolittle (R-CA), Simpson (R-ID), Granger (R-TX), and Lewis (R-CA).
The Energy and Water Subcommittee of the Senate Appropriations Committee is chaired by Senator Dorgan (D-ND). Other members include Senators Byrd (D-WV), Murray (D-WA), Feinstein (D-CA), Johnson (D-SD), Landrieu (D-LA), Inouye (D-HI), Reed (D-RI), Lautenberg (D-NJ), Domenici (R-NM), Cochran (R-MS), McConnell (R-KY), Bennett (R-UT), Craig (R-ID), Bond (R-MO), Hutchison (R-TX), and Allard (R-CO).
Senate Appropriations Subcommittee on Energy and Water hearing on the Energy Department's Budget Request and Justification for FY2009 Witnesses Members Present The Senate Appropriations Subcommittee on Energy and Water held a hearing to examine the President’s fiscal year 2009 budget request for the Office of Science, the Office of Energy Efficiency and Renewable Energy (EERE), and the Loan Guarantee Program Office at DOE. Senators Dorgan (D-ND) and Domenici (R-NM) emphasized that the programs under the purview of the witnesses represented the “A-Z” or “entire pipeline” of energy technology development and deployment needed to meet our energy challenges and that breakthroughs in energy technology are necessary to accomplish the goals set out in the Energy Independence and Security Act (EISA) of 2007. Dr. Raymond Orbach, Under Secretary for Science was the first witness to testify focusing on the President’s fiscal year (FY) 2009 budget request for the Office of Science. The request for the Office of Science is $4.7 billion an increase of $749 million compared to FY 2008 enacted levels. The broad base increases in the budget for the Office of Science are in support of the President’s American Competitive Initiative and Congress’s America COMPETES Act, which according to Orbach “recognize the pivotal role of the Office of Science in securing the advantages that basic research as well as science, math, and engineering education can bring to the Nation.” Dr. Orbach highlighted some of the planned FY 2009 initiatives, including the establishment of Energy Frontier Research Centers, which will focus on advancing energy technologies including research in “solar energy utilization; geosciences related to the long-term storage of nuclear waste and carbon dioxide; advanced nuclear energy systems; solid state lighting; and superconductivity.” Mr. Alex Karsner testified regarding the EERE FY 2009 budget request of $1.255 billion, which is $19 million more than the FY 2008 budget request, but $467 million less than FY 2008 enacted levels. Karsner stated “EERE’s budget request supports priority R&D and the achievement of stated goals.” It is estimated that the rapid and broad base deployment of EERE technologies into the market could save consumers $600 billion by 2030 and $4 trillion cumulatively by 2050. Additionally, advancement of EERE technologies could prevent 6 gigatons of carbon from being released into the atmosphere by 2030 and 50 gigatons by 2050. The final witness, Mr. Frantz, discussed the loan guarantee program, which provides funds for demonstration and pilot projects that advance final stage energy projects to commercial viability. The majority of questions asked by the Senators were directed at Karsner and the decline in the EERE budget. In response to questions about the programs under EERE, Karsner expressed his excitement for the geothermal program and the opportunity that exists to galvanize the area of research. Senator Dorgan (D-ND) voiced his concerns about the declining hydrogen technology budget, which is $50 million less than what was spent three years ago and the reduction in investments in solar energy. Senators Murray (D-WA) and Craig (R-ID) questioned Karsner and Orbach about the research programs being undertaken in the national labs located in their states, namely hydropower and biofuel programs in Washington and advanced vehicle research in Idaho. Frantz also received a fair number of questions as senators expressed their frustration at the pace of program, which was authorized in 2005, but will only begin to grant loans this year. The written testimony of the witnesses can viewed at http://appropriations.senate.gov/hearings.cfm?s=erg. -MG
Sources: Department of Energy; Environment and Energy Daily; Greenwire; U.S. House of Representatives; United States Senate; Hearing testimony. Please send any comments or requests for information to the AGI Government Affairs Program at govt@agiweb.org. Contributed by Marcy Gallo, AGI Government Affairs Staff Last Update April 11, 2008. |