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April 22, 2013
President Obama released his $3.77 trillion fiscal year (FY) 2014 budget proposal on April 10, 2013. This budget, the first since his reelection, reflects the priorities President Obama put forward during his campaign, in particular, the Administration's commitment to investments in clean energy and energy efficiency. The proposed 2014 budget increases funding for the Department of Energy’s (DOE) renewable energy and energy efficiency technology programs by more than 59 percent above 2012 enacted levels, to a total of $3.5 billion. According to the White House, it also increases funding for clean energy technology programs across all agencies by 30 percent, to approximately $7.9 billion.
Highlights include a $2 billion Energy Security Trust to help transition the nation off oil, a new Race to the Top program for energy efficiency and grid modernization, $2 billion towards a satellite system that would improve weather forecasts and climate modeling and $5 billion for basic research in energy (a 5.7 percent increase over 2012). The budget also repeats the President's call for the elimination of $4 billion in fossil fuel subsidies.
This fact sheet outlines the Obama administration’s FY 2014 budget request for several clean energy and transportation programs within key agencies. In most cases, comparisons are made to 2012 actual (or current) figures, as the final 2013 appropriations had not been enacted when the budget was drafted.
The President’s FY 2014 budget request for the Department of Energy (DOE) is $28.4 billion, an increase of about 8 percent over FY 2012 current levels. The proposed budget increases funding for clean energy deployment, research and development and advanced manufacturing. The Office of Energy Efficiency and Renewable Energy (EERE) would receive$2.8 billion, an increase of almost 56 percent from 2012 appropriated levels. In addition, the budget outlines a new Presidential goal of doubling energy productivity by 2030 from 2010 levels. To support the goal, the FY 2014 request includes a one-time, $200 million Race to the Top competitive grant program that challenges states to cut energy waste, support energy efficiency and modernize their grids.
The budget request increases the Electric Delivery and Energy Reliability budget 24.1 percent to $169 million, including$20 million for the creation of a new electricity systems hub. The Fossil Energy budget would grow by 15 percent to $638 million, including $276.6 million for carbon capture and storage R&D. The Office of Nuclear Energy, which includes R&D for advanced small modular reactors, is funded at $735 million. The DOE science budget increases 4.4 percent from FY 2012 to $5.2 billion. The budget also provides $379 million for the Advanced Research Projects Agency-Energy (ARPA-E), an increase of 38 percent.
DOE Overall Energy Budget
(Dollars in thousands)
Organization
FY 2012 Current
FY 2013 Annualized CR*
FY 2014
Budget Request
FY 2014 v. FY 2012
$ Change
% Change
Energy Efficiency and Renewable Energy
1,780,548
1,820,713
2,775,700
995,152
55.9%
Electric Delivery and Energy Reliability
136,178
139,954
169,015
32,837
24.1%
Fossil Energy
554,806
714,033
637,975
83,169
15.0%
Nuclear Energy
853,816
863,996
735,460
-118,356
-13.9%
Race to the Top for Energy Efficiency and Grid Modernization
N/A
200,000
Science
4,934,980
4,903,461
5,152,752
217,772
4.4%
Advanced Research Projects Agency-Energy (ARPA-E)
275,000
276,683
379,000
104,000
37.8%
Sub Total
8,535,328
8,718,840
10,049,902
1,514,574
64.2
* Note: FY 2013 amounts shown reflect spending enacted by P.L. 112-175 continuing resolution (annualized to a full year) and do not reflect the impacts of sequestration.
The President’s FY 2014 Energy Efficiency and Renewable Energy budget request for DOE includes:
DOE Energy Efficiency and Renewable Energy Budget
Program
FY 2012
Current
FY 2013
CR (Annualized)
Vehicle Technologies
320,966
330,819
575,000
Bioenergy Technologies
(formerly Biomass and Biorefinery Systems R&D)
194,995
200,496
282,000
Hydrogen and Fuel Cell Technologies
101,326
104,258
100,000
Solar Energy
284,702
290,719
356,500
Wind Energy
91,813
93,825
144,000
Water Power
58,076
59,147
55,000
Geothermal Technology
36,979
38,094
60,000
Advanced Manufacturing (formerly Industrial Technologies)
112,692
116,287
365,000
Federal Energy Management Program
29,891
30,074
36,000
Building Technologies
214,706
220,546
300,000
Weatherization and Intergovernmental
128,000
128,783
248,000
Weatherization Assistance
68,000
--
184,000
State Energy Program
50,000
57,000
Tribal Energy Program
10,000
7,000
Program Direction
165,000
166,010
185,000
Strategic Programs
25,000
25,153
Facilities and Infrastructure (NREL)
26,311
26,472
46,000
Subtotal EERE
1,790,457
1,830,683
2,788,500
Adjustments (Includes Prior Year Balances )
-9,909
-9,970
-12,800
Total EERE
Department of Energy Bioenergy Programs
The Administration is proposing to renew investment for another five years in the nation’s three Bioenergy Research Centers, which conduct basic scientific research, and increase investment in bioenergy technology research and development. The BioEnergy Research Center (BESC) led by Oak Ridge National Laboratory, the Great Lakes Bioenergy Research Center (GLBRC) led by the University of Wisconsin-Madison in partnership with Michigan State University, and the Joint BioEnergy Institute (JBEI) led by Lawrence Berkeley National Laboratory would each be funded at $25 million per year. The initiative would include developing advanced integrated biorefineries that would produce drop-in renewable fuels, feedstock production systems, algae biofuel production, and sustainability research and analysis.
The Energy Efficiency and Renewable Energy Office's bioenergy program will be integrated into the department’s “Sustainable Transportation” initiative. The administration is proposing to boost investment in this area by $82 million (41 percent) over last year.
Department of Energy (DOE) Bioenergy Programs
Actual
FY 2013 Estimated
EERE - Biomass Program
199,000
Science – Bioenergy Research Centers
75,000
Total DOE Bioenergy
274,000
357,000
U.S. Department of Agriculture Bioenergy Programs
Overall Department of Agriculture funding for energy efficiency, bioenergy, or other renewable energy programs hasdeclined dramatically since FY10. Congress has yet to enact a new Farm Bill, and, in the temporary extension of the 2008 Farm Bill enacted at the beginning of the year, it did not provide any new mandatory funding for such programs. The Administration has repeatedly expressed strong support for these programs, but proposed funding for just two of them, leaving the decisions to Congress.
Agriculture committees in both the House and Senate are expected to begin marking up new versions of the Farm Bill this spring, and assuring reauthorization and mandatory funding for energy title programs will be a critical concern for many. For a relatively small public investment – matched by significantly larger private resources – these programs have been a win-win for advancing many critical national environmental, energy, and economic priorities.
U.S. Department of Agriculture Farm Bill Energy Title Programs
FY 2012 Actual
Mandatory|Discretionary
Sec. 9002 Biobased Markets Program
2,000
0
-
Sec. 9003 Biorefinery Assistance Program
21,000
Sec. 9004 Repowering Assistance Program
Sec. 9005 Bioenergy for Advanced Biofuels
65,000
Sec. 9006 Biodiesel Fuel Education Program
1,000
Sec. 9007 Rural Energy for America Program
22,000
4,000
70,000
19,000
Sec. 9008 Biomass Research and Development
40,000
26,000
Sec. 9010 Feedstock Flexibility Program
Sec. 9011 Biomass Crop Assistance Program
17,000
Sec. 9012 Forest Biomass for Energy
Sec. 9013 Community Wood Energy
Total DOE Bioenergy (mandatory + discretionary)
172,000
91,000
115,000
Department of Energy
The U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE) proposes $300 million for Building Technologies in FY 2014, an increase of more than $85 million over FY 2012 appropriations. The focus on improving energy efficiency in residential and commercial buildings is part of the President’s goal of reducing building energy waste by half and doubling energy productivity over the next 20 years.
Funding for research and development of emerging technologies would more than double over the FY 2012 level to nearly$132 million. This includes sensors and controls linked to grid integration of building systems. An increase of $15 millionover FY 2012 is slated for the development of appliance efficiency standards and training and technical assistance on building energy code development and compliance. The budget proposal also urges Congress to pass Home Star legislation “or similar mandatory funding” to provide rebates for residential energy-saving retrofits that also create jobs. Funding would also go to state and local governments to provide financing options for consumers seeking to make efficiency investments.
Department of Energy Building Technologies Programs
Dollars in Thousands
FY 2014 Budget Request
Commercial Building Integration
31,913
36,570
Emerging Technologies
61,182
131,740
Energy Innovation Hub
23,583
24,300
Equipment and Building Standards
66,746
82,000
Residential Buildings Integration
31,282
24,390
NREL User Facility
Total
* Because of the continuing resolution, amounts are only included at the “congressional control” level and above
Department of Housing and Urban Development (HUD)
The President’s budget provides $47.6 billion for HUD programs, an increase of $4.2 billion over the 2012 enacted level. The proposed budget cuts funding for the construction of new affordable housing and invests in revitalizing high-poverty neighborhoods and blighted communities that were hit hard by the foreclosure crisis. Support of sustainable housing and community development continues in a variety of forms including the following "cross-cutting" programs.
Transformation Initiative (TI) Fund – The 2014 budget request seeks authority for the Secretary to transfer up to 0.5 percent or $15 million, whichever is less, from each program account to Technical Assistance and other activities, such as: - $1 million for Advancing Utility Allowance Modeling for HUD Housing Programs to “accurately account for energy usage in select housing assistance programs in which utility costs are paid by tenants.” - $3 million for Standardized Skills Training to ensure that grantees and stakeholders acquire relevant knowledge and skills in areas such as “energy efficiency and weatherization; healthy housing; construction and rehabilitation management; and regional equity and sustainability.”
Choice Neighborhoods – The budget proposal includes $400 million (versus $120 million enacted in FY 2012) to transform 30 neighborhoods of extreme poverty into sustainable, mixed-income communities.
Interagency Partnerships – As part of a partnership between HUD, the Department of Transportation, and the Environmental Protection Agency, the budget includes $75 million in Integrated Planning and Investment Grants to help communities develop housing and transportation plans and improve their resilience to extreme weather and other climate change impacts. This may include incentives to update building codes, revise land-use and zoning ordinances, and other activities to “reduce energy consumption and greenhouse gas emissions and increase affordable housing near public transit.”
The Manufactured Housing Standards Program budget request is $7.53 million in 2014, an increase of 25.88 percent over 2012 enacted levels. The program maintains and updates federal standards for the construction, design and performance of manufactured housing (i.e. housing constructed in factories to "HUD Code" specifications) including "quality, durability, and safety," as well as model installation standards. The program also oversees inspections and code enforcement. However, HUD has not updated the standards to improve the energy efficiency of manufactured homes, which would make them more affordable to own and operate. With the Energy Independence and Security Act of 2007 (Sec. 413), Congress tasked DOE with this responsibility. Regulations have not yet been finalized.
Department of Housing and Urban Development
Selected Programs
FY 2012 Enacted
Choice Neighborhoods
120,000
400,000
Integrated Planning and Implementation Strategies
Manufactured Housing Standards Program
5,982
7,530
Total (Net Budget Authority)
125,982
482,530
The proposed Department of Transportation (DOT) FY 2014 budget calls for a total of $76.6 billion. This represents a 5.5 percent increase over the FY 2012 enacted level. The proposal also calls for an immediate investment of an additional $50 billion in FY 2014 to support critical infrastructure projects and to jump start job creation. The FY 2014 budget proposal for the Federal Transit Administration ($10.9 billion) provides for funding at the level included in the most recent surface transportation authorization law, Moving Ahead for Progress in the 21st Century Act (MAP-21). MAP-21 was enacted in July 2012, providing surface transportation authorization through FY 2014. New Starts and the Formula Programs are allocated $1.98 billion and $8.6 billion, respectively. The $41 billion request for the Federal Highway Administration consolidates Federal-Aid Highways into eight programs and implements the performance-based investment approach laid out by MAP-21. The $820 million Transportation Alternatives Program supports the goal of livable communities.
The Federal Railroad Administration’s FY 2014 budget includes a reauthorization proposal to reorganize its programs. A new five-year $40 billion National High Performance Rail System includes new Current Passenger Rail Service and Rail Service Improvement programs. The budget funds the programs in FY 2014 at $2.7 billion and $3.66 billion, respectively, by establishing a Rail Service account in the Transportation Trust Fund (a proposed renaming of the Highway Trust Fund). The “Current” program includes Amtrak grants, but is divided into four program areas: Northeast Corridor ($675 million), State Corridors ($300 million), Long Distance Routes ($800 million) and National Assets ($925 million). The proposed Rail Service Improvement Program would aim to provide 80 percent of the country with convenient access to passenger rail, featuring high speed service, within 25 years.
The Trust Fund’s solvency would be assured by $214 billion in general funds transfers over six years, including a $2.55 billion transfer in FY 2014. All transfers would be offset by reduced overseas military operations.
Department of Transportation Programs
(Dollars in Thousands)
Program / Organization
Estimated
Office of the Secretary - National Infrastructure Investments
500,000
503,000
Federal Highway Administration (FHWA)
41,871,000
42,528,000
41,019,000
Federal Transit Administration
10,540,000
21,523,000
10,910,000
Transit Formula Program (Mass Transit Account of HTF)
8,361,000
8,412,000
8,595,000
Capital Investment Grants/New Starts
1,886,000
1,923,000
1,981,000
Washington Metropolitan Area Transit Authority
150,000
151,000
Public Transportation Emergency Relief Program (Sandy)
10,894,000
Federal Rail Administration
1,649,000
1,793,000
6,635,000
Current Passenger Rail Service (Rail Account of Transp. Trust Fund (TTF)
2,700,000
Operating Grants to Amtrak (FY 2014 in Current)
466,000
469,000
478,000*
Capital and Debt Service Grants to Amtrak (FY 2014 in Current)
952,000
958,000
976,000*
Rail Service Improvement Program (Rail Account of TTF)
3,660,000
Grants to Amtrak (Sandy repair & mitigation)
118,000
Pipeline and Hazardous Materials Safety Administration
191,000
202,000
255,000
Federal Aviation Administration
15,902,000
16,009,000
15,551,000
Federal Maritime Administration
160,000
157,000
152,000
National Highway Traffic Safety Administration
802,000
811,000
829,000
* Line items discontinued and absorbed into Current Passenger Rail Service request
The administration’s FY 2014 request for $50 billion in immediate investment includes $40 billion for the “Fix-it-First” (FiF) program for urgent repairs to existing infrastructure, and $10 billion to spur State and local infrastructure development innovation, including $200 million for climate change resiliency projects. The additional spending would increase FY 2014’s highway and transit budgets by 66 and 82 percent, respectively.
“Fix-it-First” (FiF) Program Breakdown
Federal Highway Administration (FHWA) - Fix-it-First
27,000,000
Federal Transit Administration - Fix-it-First
9,000,000
Transit Capital Assistance (maintain $663B infrastructure)
2,500,000
Transit Core Capacity Improvement (fixed guideway)
State of Good Repair (formula: 75% fixed, 25% bus)
6,000,000
5,000,000
Rail Service Improvement (intercity passenger new, major improvements)
3,000,000
Current Passenger Rail Service (repair, rehab, upgrade) - Fix-it-First
2,000,000
Grants-in-Aid (airport development) - Fix-it-First
Facilities and Equipment (NextGen navigation)
1,000,000
Office of the Secretary
Transportation Leadership Awards (competitive, process improvement)
Transportation Infrastructure Grants and Financing (competitive)
4,000,000
The President’s budget requests additional funding for the Department of Energy (DOE) to invest in transportation technologies. The DOE Office of Energy Efficiency and Renewable Energy (EERE) proposed budget includes $575 million for EERE’s Vehicle Technologies Office. This would be an increase of 80 percent over current estimates for FY 2012 spending. Of the total request, $240 million would be allocated to improve batteries and electric drive technology. The budget for outreach, deployment, and analysis activities would be tripled over FY 2012 estimates to $126 million. The DOE budget also proposes to establish a new Energy Security Trust, capitalized by $2 billion over the next 10 years from Federal oil and gas development revenue. The Trust would be used to provide mandatory funding for research and development on cost-effective alternative transportation technologies that cut U.S. oil dependence, including vehicle electrification, fuel cells, and natural gas-powered vehicles.
The President’s FY 2014 budget request for the Environmental Protection Agency (EPA) is $8.153 billion, a decrease of $296 million (a 3.5 percent decrease from FY 2012 enacted funding). The request for climate change programs is $176.5 million, a 4.8 percent increase from FY 2012 funding.
The Energy STAR program budget request is $52.9 million, a 6.4 percent increase from FY 2012 appropriations. This increase “will improve quality control over the Energy STAR product labeling program and revise product and building specifications to advance energy efficiency.” The Global Methane Initiative (GMI), formerly known as Methane-to-Markets, is slated to receive $4.8 million, a 4.1 percent decrease from FY 2012 enacted funding. The president has also requested $18.9 million for the Greenhouse Gas Reporting Registry, an increase of 19.7 percent from FY 2012. Federal vehicle and fuel standards initiatives would receive $100.4 million, a 9.2 percent increase from 2012.
Environmental Protection Agency
Clean Air and Climate Programs
Annualized CR
FY 2014 Budget v. FY 2012 Enacted ($)
Clean Air Allowance Trading Programs
20,680
20,805
20,469
-211
Climate Protection Program
Energy STAR
49,668
50,249
52,915
3,247
Methane to Markets
5,013
5,068
4,803
-210
Greenhouse Gas Reporting Registry
15,757
15,941
18,865
3,108
Climate Protection Program (other activities)
28,998
29,265
29,616
618
Subtotal, Clean Air and Climate Programs
99,436
100,523
106,199
6,763
Federal Stationary Source Regulations
27,298
27,484
34,103
6,805
Federal Support for Air Quality Management
123,058
123,338
132,805
9,747
Federal Support for Air Toxics Program
Stratospheric Ozone: Domestic Programs
5,570
5,608
5,002
-568
Stratospheric Ozone: Multilateral Fund
9,479
9,627
9,690
211
Subtotal, Clean Air and Climate
285,521
287,385
308,268
22,747
The FY 2014 EPA budget request also includes:
The Department of State’s FY 2014 budget request includes $427.5 million for international organizations that facilitate climate change resilience and provide affordable renewable energy to developing nations, an increase of $103 million(31.7 percent from FY 2012 levels). This includes an increase of approximately $54 million for the Global Environment Facility (GEF), $31 million for the Clean Technology Fund (CTF), and $18 million for the Strategic Climate Fund (SCF). The Strategic Climate Fund (SCF) includes funding for three programs: the Pilot Program for Climate Resilience (PPCR), the Forest Investment Program (FIP), and the Program for Scaling up Renewable Energy in Low-Income Countries (SREP).
Department of State
State Operations and Foreign Assistance Request
CR Total
FY 2014 Budget v. FY 2012 Actual ($)
Global Environment Facility
89,820
90,370
143,750
53,930
Clean Technology Fund
184,630
185,760
215,700
31,070
Strategic Climate Fund
49,900
50,205
18,100
Subtotal
324,350
326,335
427,450
103,100
In addition, the FY 2014 budget request for the Department of State includes $317 million in bilateral development assistance for climate adaptation, clean energy, and the sustainable landscapes program within the Global Climate Change (GCC) priority area. The Ocean and International Environmental and Scientific Affairs (OES) program would receive $116.5 million in the FY 2014 request. The OES supports, among other programs, the Clean Energy Ministerial, the Global Methane Initiative and the Clean Air and Climate Coalition, as well as the Special Envoy for Climate Change who leads U.S. climate negotiations.
The Department of Defense (DOD) budget includes more than $3 billion for operational and facility energy conservation investments. This includes $2 billion for initiatives to reduce fuel consumption and $1.2 billion for facility energy efficiency and renewable energy upgrades — $200 million more than the FY 2013 request. The Installation Energy Test Bed Program, which demonstrates new technologies and reduces commercial investment risk, would receive $32 million. The Energy Conservation Investment Program, which supports renewable energy and energy efficiency projects at military bases, remains at the FY 2013 appropriations level of $150 million.
The Department of Commerce's $8.6 billion budget request includes $5.4 billion for the National Oceanic and Atmospheric Administration (NOAA). The major focus is $2 billion towards the Geostationary Operational Environmental Satellite System, which will be used to improve weather predictions and modeling. The budget request includes $472.4 million for NOAA’s Office of Oceanic and Atmospheric Research (OAR). This increase of $82 million over FY 2013 will be used to enhance the agency’s ability to help local communities prepare for extreme weather events and to expand its climate change research.
The Department of Interior (DOI) budget request for renewable energy initiatives is $100 million, an increase of $26 million above FY 2012 enacted levels. The DOI climate change science budget is $71 million, an increase of $13 million.
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