|Congressional Research Service Reports
Redistributed as a Service of the NLE*
IB10020: Energy Efficiency: Budget, Oil Conservation,
and Electricity Conservation Issues (pdf)
and Industry Division
July 27, 2001
Energy security, a major driver of federal
energy efficiency programs in the past, came back into play as oil and gas
prices rose late in the year 2000. Also, the electricity shortages in
California have brought a new emphasis to the role that energy efficiency
and energy conservation may play in dampening electricity demand.
Also, worldwide emphasis on environmental
problems of air and water pollution and global climate change, and the
related development of clean energy technologies in western Europe and
Japan may remain important influences on energy efficiency policymaking.
Concern about technology competitiveness may also remain a factor in
In the 107th Congress, debate over
energy efficiency programs appears to be taking a focus on budget, oil
conservation, and electricity conservation.
DOE's FY2002 budget request for the Energy
Efficiency Program proposes to cut funding to $755.8 million -- a decrease
of $59.6 million, or 7%, below the FY2001 level. This includes $444.8
million for R&D programs, a cut of $180.1 million, or 29%. For grant
programs, the request includes $311.0 million, an increase of $120.3
million. All of this increase is for the Weatherization Program, which
would grow from $152.7 million to $273.0 million, a 79% addition.
The House recommends $940.8 million for Energy
Efficiency, including $629.8 million for R&D and $311.0 million for
grants. Compared to FY2001, this would be an increase of $4.9 million, or
1%, for R&D and $120.4 million, or 63%, for grants. Relative to the
request, this includes an increase of $185 million for R&D and $24
million for State grants and a decrease of $24 million for Weatherization
The FY2002 EPA request for Climate Protection
Energy Efficiency Programs (CPP) is $145.0 million (see Table 1). This is
$1.2 million, or 1%, less than the FY2001 level. Regarding specific
programs, the request includes $4.6 million, or 14%, less for Industry,
but $0.8 million, or 15%, more for International Capacity Building, and
$3.0 million, or 10%, more for Transportation.
A recently introduced omnibus energy bill (H.R. 4,
Securing America's Future Energy Act of 2001), includes many, if not most,
of the recommendations from Bush Administration's National Energy Policy
Development Group report. Further, it draws many of these energy
efficiency and conservation provisions from H.R.
2511, and H.R.
2587, including authorizations for R&D appropriations and energy
conservation grants; tax incentives for fuel cells, appliances, home
improvements, energy-efficient buildings, and certain vehicles; programs
for federal facilities; and increased fuel economy standards for certain
light duty vehicles.
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