President’s DOE Budget Reinforces Commitment to Position American Workers, Scientists, Industries and Communities at the Center of a Clean Energy
WASHINGTON, D.C. — The Biden-Harris Administration today sent to Congress the President’s Budget for Fiscal Year 2022 (FY22). As the Administration continues to make progress defeating the pandemic and getting our economy back on track, the Department of Energy’s (DOE) Budget makes historic investments that will help the country build back better and lay the foundation to build a clean energy economy and ensure the U.S. reaches net-zero carbon emissions by 2050.
“President Biden’s budget request puts America in the driver's seat as we transition towards a 100% clean energy economy,” said Secretary of Energy Jennifer M. Granholm. “These investments will ensure the U.S. is the global leader in research, development, and deployment of critical energy technologies to combat the climate crisis, create good-paying union jobs, and strengthen our communities in all pockets of America.”
The Budget complements the historic American Jobs Plan that the President put forward prioritizing research, clean energy, and other foundations of our country’s strength, in addition to mission-critical initiatives at the DOE, including:
- Deliver Historic Funding Levels for National Labs and Universities for Energy and Climate Research and Innovation. The request includes an investment of $7.4 billion for the Office of Science to support the foundational research that will bring us the next generation of energy discoveries. The budget request prioritizes investments in climate science and fundamental energy research, including a nearly 10% increase in funding for climate and clean energy focused research. These investments coupled with investments in applied energy programs would leverage the tremendous innovation capacity of the National Laboratories, universities, and entrepreneurs to transform America’s power, transportation, buildings, and industrial sectors to achieve a net-zero emissions economy by 2050. At the same time, the budget will build on and advance the Department’s global leadership in critical technology areas such as quantum science, advanced supercomputing, and artificial intelligence. With an ‘all R&D community’ approach, the new Energy Earthshots initiative will drive integrated program development across DOE’s science and applied energy offices and ARPA-E to advance carbon-neutral fuels such as hydrogen, new grid modernization technologies, and revolutionize carbon management. Additionally, the creation of ARPA-Climate will be critical to advancing climate technology solutions for adaptation, resilience and non-energy emissions mitigation.
- Spur Innovation and Job Creation by Developing and Deploying Clean Energy Technologies. To lead in the transition to a 100% clean energy economy, the request of $4.7 billion for DOE’s Office of Energy Efficiency and Renewable Energy (EERE), a 65% increase from FY21, includes more than $1 billion in new funding to deploy the clean energy technologies that can deliver pollution-free, affordable energy to all Americans while creating jobs and building a more equitable economy. This includes two new Manufacturing USA institutes to ensure that American workers lead the globe in building clean energy technology, $300 million for grants to partner with state and local governments advancing clean energy policies suited to their needs, prioritizing clean energy and benefits for disadvantaged communities, $400 million to create jobs renovating homes to save energy and reduce energy bills for low-income Americans, and $400 million to create well-paying union jobs decarbonizing Federal buildings. The Budget also requests $400 million for a new Office of Clean Energy Demonstrations to keep bringing innovative technologies to market. The $327 million Office of Electricity FY22 budget will accelerate the modernization of the country’s electrical power grid infrastructure through planning and other work to promote transmission deployment, advancing technology and systems development to integrate clean energy, and a major $119 million investment in grid storage technology.
- Secure Record Funding for Nuclear Energy and Advanced Nuclear to Achieve Climate Goals. Nuclear power provides for a fifth of America’s overall electricity and just over half of our zero-emissions energy, making it a key part of our clean energy future. To support existing and advanced nuclear technologies, the request includes a record $1.85 billion for the Office of Nuclear Energy, an increase of over 23% from FY21 enacted. Over $1 billion is dedicated to nuclear energy research, development, and demonstration programs, including $245 million to support the demonstration of two advanced reactor technologies within the next six years. The budget includes funding to support consent-based siting process to support consolidated interim storage for the nation’s used nuclear fuel and high-level radioactive waste.
- Rein in Emissions from Fossil Energy with Investment in New Technologies. To support work that minimizes the climate and environmental impacts of fossil fuels and creates new job opportunities for workers and communities affected by the energy transition, the FY22 budget requests $890 million for Fossil Energy and Carbon Management Research, Development, Demonstration, and Deployment (FECM RDD&D). This money will support a modernized mission advancing technologies that reduce carbon emissions and other environmental impacts of fossil fuel production and use, particularly the hardest-to-decarbonize applications in the electricity and industrial sectors. Priority areas of technology work include point-source carbon capture, hydrogen, methane emissions reduction, critical mineral production, and carbon dioxide (CO2) removal to address the accumulated CO2 emissions in the atmosphere.
- Strengthen the Nation’s Energy Security and Resiliency. With rising threats from cyber attacks and natural disasters to the reliability and security of our nation’s critical energy infrastructure, the FY22 budget will enhance the Office of Cybersecurity, Energy Security, and Emergency Response’s (CESER) risk management, situational awareness and emergency response capabilities. This budget request of $201 million will also advance policies, technologies, and initiatives that will increase the visibility of physical and cyber threats in the operational technology environment, mature the cybersecurity supply chain, and support exercises and partnerships with states and other public and private sector organizations that will bolster our nation's energy security and resiliency.
Additionally, the FY22 budget will reflect the shift of the Office of Petroleum Reserves, including the Strategic Petroleum Reserve (SPR), from the Office of Fossil Energy and Carbon Management to CESER. This reflects the SPR’s crucial status as an emergency preparedness and response asset. While the SPR was not called upon earlier this month, incidents like the Colonial Pipeline disruption showcase how reserve supplies of oil and refined products must be considered part of the emergency management toolset.
- Sustain Support for U.S. Nuclear Security. The budget’s $19.7 billion request sustains the record FY21 program funding levels for the National Nuclear Security Administration, reflecting a commitment to DOE’s contribution to national security and support for the Department of Defense. The request will support critical infrastructure investments including facilities that will produce plutonium pits, an essential capability of a safe, secure and effective nuclear deterrent. In addition, the request maintains the nation’s investment in cleanup of World War II and Cold War nuclear sites. The $7.6 billion request will allow DOE to make progress on some of the most difficult cleanup sites in the country.
For more information on the President’s FY22 Budget, please visit: https://www.whitehouse.gov/omb/budget/.