The federal renew¼able energy program includes R&D funding, tax credits, and a regulatory framework ensuring utility purchases of electricity from independent renewable power producers. In constant 1996 dollars, DOE's renewable energy R&D (excluding electric energy and storage) funding declined 91%, from $1.3 billion in FY1979 to $132 million in FY1990. Real spending ($1996) rose steadily thereafter, reaching $340 million for FY1995, but 73% below the FY1979 peak.The spending history for DOE renewable energy R&D can be viewed within the context of DOE spending for the three other energy R&D programs: nuclear, fossil, and energy efficiency R&D. From FY1948 through FY1972, the federal government spent about $21 billion ($1996 constant) for nuclear (fission and fusion) energy R&D and about $5 billion for fossil energy R&D. From FY1973 through FY1995, the federal government spent $41 billion for nuclear, $20 billion for fossil, $10 billion for renewables, and $6 billion for energy efficiency. Total spending from FY1948⌐FY1995 reached $103 billion, including $62 billion or 60% for nuclear (fission and fusion), $25 billion or 24% for fossil, $10 billion or 10% for renewables, and $6 billion or 6% for energy efficiency.
The passage of the Energy Policy Act (EPACT, P.L. 102⌐486) and a priority commitment to renewables by the Clinton Administration raised the spending levels for FY1994 and FY1995. The Administrati¡on's FY1996 DOE budget request reflected this priority by seeking $372 million, a $28 million increase primarily for export promotion and pollution prevention. Stressing budget deficit concerns, the 104th Congress soundly rejected this bid. The FY1996 appropriation of $254 million is about $77 million or 23% lower than the FY1995 mark.
The FY1997 DOE Budget Request (excluding electric/storage and energy management) seeks $327 million, a $73 million or 22% increase over the FY1996 mark. The Request includes $27 million more for biofuels, $25 million more for photovoltaics, and $18 million more for wind.
The House Appropriations Committee recommends $202 million for DOE's Renewable Energy program (close to the $191 million in the House Budget Resolution). This would be $52 million or 20% lower than the FY1996 level and it is $125 million or 38% lower than the Administration Request. The House mark would cut wind spending by $26 million and photovoltaics by $6 million while terminating deployment and in-house energy management. The Senate Appropriations Committee recommends $215 million, which is about $12 million or 6% higher than the House mark. Relative to the House mark, it increases wind by $9 million, but it would terminate the National Renewable Energy Laboratory (NREL) and cuts hydrogen by $6 million.
Combining the 23% cut in FY1996 with the House Appropriations Committee recommended 20% cut for FY1997 would reduce the Program to about half (in real terms) its FY1995 capability. If continued, this downsizing trend would bring the Program to an end in FY1999.
A Presidential veto is possible and efforts are underway in both chambers to raise the FY1997 Appropriations Committees' marks in floor action. Floor action to reduce spending further is also possible.
