DOE Office of Energy Efficiency and Renewable Energy FY2024 Appropriations

The U.S. Department of Energy's (DOE's) Office of Energy Efficiency and Renewable Energy (EERE) is responsible for enabling renewable energy and end-use energy efficiency technology development and implementation. Other activities include issuing grants for home energy efficiency and state planning, establishing minimum energy conservation standards for appliances and equipment, and providing technical support.

EERE collaborates with industry, academia, national laboratories, and others to conduct and support research, development, demonstration, and deployment activities. EERE also manages programs that support state and local governments, tribes, and schools. Further, EERE oversees and supports the research and infrastructure of the National Renewable Energy Laboratory (NREL) and its research and development on technologies for renewable energy and energy efficiency.

EERE Appropriations

EERE generally receives funding through the annual Energy and Water Development and Related Agencies (EWD) appropriations bill. EWD funding was enacted as Division D of the Consolidated Appropriations Act, 2024 (P.L. 118-42). Division D included $3.46 billion for EERE, the same as in FY2023 in the Consolidated Appropriations Act, 2023 (P.L. 117-103).

In addition, EERE receives funding through the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58). IIJA provided a total of $16.26 billion in additional emergency appropriations for EERE, of which $1.945 billion is directed to FY2024 (see Table 1). EERE also received $17.96 billion in additional funding through various provisions of P.L. 117-169 (often referred to as the Inflation Reduction Act of 2022, or IRA). The IRA funding is available from FY2022 through either FY2026, FY2027, FY2029, or FY2031, depending on the provision.

Executive Branch Actions

For FY2024, the Biden Administration requested $3.83 billion for the EERE organization—10.6% higher than the FY2023 enacted level of $3.46 billion. In FY2023, DOE created a position, the Under Secretary for Infrastructure (designated as "S3" in the DOE organization), to manage several programs, including programs previously administered with EERE—including the Office of Manufacturing and Energy Supply Chains (MESC); Office of State and Community Energy Programs (SCEP); and Office of Federal Energy Management Programs (FEMP). DOE's FY2023 request shifted these programs out of the EERE appropriations account, reflecting their management by S3. Of the $3.83 billion in the FY2024 request for EERE, 5.9% was to be reserved for program direction (i.e., salaries and benefits, travel, support services, and other related expenses). Including current EERE programs now managed by S3 rather than within the EERE organization, a total of $4.79 billion was requested, which would have been a 39% increase from the FY2023 and FY2024 enacted amounts.

Overall, DOE's stated goal for EERE funding is to invest in "programmatic priority areas that are central pillars in lowering the U.S. greenhouse gas (GHG) profile." Specific proposed funding increases were aimed at decarbonization activities in the electricity sector, transportation, energy-intensive industries, the carbon footprint of buildings, and energy-related aspects of the agriculture sector, especially the energy-water nexus. Other priorities included energy justice efforts under Justice40, an initiative of the Biden Administration in accordance with Executive Order 14008 to prioritize 40% of funding of certain federal investments for disadvantaged communities.

Legislative Actions

The Consolidated Appropriations Act, 2024, continues funding the MESC, SCEP and FEMP within the EERE appropriations account. The enacted law increases the percentage of IIJA funding for EERE that can be reserved for program direction from up to 3% to up to 5% of amounts made available.

The House-passed EWD bill (H.R. 4394) would have disallowed funds to be used for purposes related to increasing an energy efficiency standard on distribution transformers or related to energy conservation standards for natural gas cooking products (e.g., gas stoves). The bill would also have rescinded the following from the IRA: $1 billion in funding for two programs in support of work by state energy offices aimed at building energy code adoption, $4.5 billion in funding for the High-Efficiency Electric Home Rebate Program, and $200 million in funding to train state energy offices contractors who work in support of the Home Energy Performance-Based, Whole House Rebates. The House-passed bill also would have decreased the bill's total for EERE by $1 billion. None of these provisions were enacted in P.L. 118-42.

The joint explanatory statement that accompanied P.L. 118-42 created a control point, Industrial Emissions and Technology Coordination, $3.5 million, separate from EERE, for coordination of low-emission industrial programs and energy technology programs. The EWD bill approved by the Senate Appropriations Committee (S. 2443) would have made an appropriation for Industrial Emissions and Technology Coordination.