Funding for Energy-related Items

Department of Energy

ARRA includes $39 billion in stimulus funding for the Department of Energy (DoE) as part of the package's support for upgrading the country's infrastructure and power grid. DoE allocations include funding for the department's science office, research grants, and energy efficiency programs.

The stimulus bill provides $16.8 billion for DoE energy efficiency and renewable energy projects, including $2.5 billion to support applied research, development, demonstration and deployment of advanced energy technologies. Almost half of this R&D funding will be dedicated to biomass- and geothermal-related projects, which will receive $800 million and $400 million respectively. Other energy efficiency and renewable energy investments include:

• Energy Efficiency and Conservation Block Grants - $3.2 billion, including $400 million in competitive grants; the program provides federal grants to units of local government, Indian tribes, and states to reduce energy use and fossil fuel emissions, and for improvements in energy efficiency;
• Weatherization Assistance Program - $5 billion;
• State Energy Program - $3.1 billion;
• Advanced Battery Manufacturing Grants - $2 billion;
• Alternative-Fueled Vehicles Pilot Grants - $300 million;
• Transportation Electrification - $400 million; and,
• Energy Efficient Appliance Rebate and Energy Star Program - $300 million.

The bill also extends the renewable electricity production income-tax credit by three years for qualified facilities.

Fossil energy projects are slated to receive $3.4 billion in funding for R&D activities. This funding includes:

• Carbon Capture and Energy Efficiency Competitive Grants - $1.52 billion;
• Fossil Energy R&D - $1 billion;
• Clean Coal Power Initiative - $800 million;
• Site Characterization in Geologic Formations - $20 million; and,
• Program Direction - $10 million.

The DoE science and research offices will receive $2 billion under the stimulus plan. The DoE Office of Science gets $1.6 billion of this allocation, while the Advanced Energy Projects Agency - Energy (ARPA-E) receives $400 million.

A new loan program, the Innovative Technology Guarantee Program, will provide loan guarantees through DoE to support the development of renewable energy and transmission technologies. ARRA includes $6 billion for DoE to cover the cost of these guaranteed loans. The bill reserves $10 million of this amount for the existing Advanced Technology Vehicles Manufacturing Loan program. All projects that receive support through this program must begin construction by September 30, 2011. DoE expects to guarantee more than $60 billion in loans to renewable energy projects.

The act directs DoE to conduct a review of the nation's electrical grid to determine if significant potential sources of renewable energy are locked out of the electrical market by a lack of adequate transmission capacity. In order to update the grid in light of this review, the Western Area Power Administration will receive $10 million, along with $3.25 billion in borrowing authority to fund improvements.

Additionally, funds will be distributed amongst a number of DoE programs, including:

• Defense Environmental Cleanup - $5.127 billion;
• Non-Defense Environmental Cleanup - $483 million;
• Uranium Enrichment Decontamination and Decommissioning Fund - $483 million; and,
• Office of the Inspector General - $15 million.

Department of Defense

ARRA also provides $300 million to the Department of Defense to assist with the development of energy efficiency technology. Each of the Research, Development, Test and Evaluation (RDTE) offices within the Army, Navy and Air Force will receive $75 million, with another $75 million allotted for the Defense-wide RDTE office. These funds will provide financial support for pilot projects, demonstrations and energy efficient manufacturing enhancements.