All posts by Megan Nicholson
President Obama released his long-awaited FY2014 budget request and while it’s unlikely the budget will be taken up by Congress in its entirety, it remains an important document. Namely, the proposal is significant because it steadfastly argues that America can continue to support next-generation industries like clean energy. In fact, the President’s proposal budgets for a number of high-profile, high-impact programs, including those aimed at growing the domestic clean energy manufacturing sector, reduce transportation fuel use, and calls on Congress to fund a new Energy Innovation Hub to transform the electricity grid.
Across the board, the FY2014 request boosts key energy innovation offices at DOE by about 15 percent compared to the FY2013 Continuing Resolution and seven percent higher than the President’s FY2013 request. The lion’s share of budget gains are aimed at the Office of Energy Efficiency and Renewable Energy (EERE), which would see a budget increase of 54 percent from FY2013 CR levels, and at the Advanced Research Projects Agency-Energy (ARPA-E), which would see a budget increase of 46 percent.
Expanding Research Capabilities in Advanced Energy Manufacturing
The largest budget increase target at EERE – 22 percent to … Read the rest
This year’s budget process has been complicated by a number of factors: confusion surrounding the sequestration cuts, the absence of the President’s FY2014 budget proposal, an expiring Continuing Resolution (CR), and Congress reviewing budget proposals for FY2014 and appropriations bills for FY2013 at the same time. While the FY2014 budget is yet to be decided, last week the House approved the Senate’s version of the Full-Year Consolidated and Further Continuing Resolution Act of 2013, which funds the federal government for the remainder of the 2013 fiscal year. Since the current Continuing Resolution is set to expire on March 27, the bill, which now heads to President Obama’s desk to be signed into public law, avoids a government shutdown by a matter of days.
As shown in the figure, the new CR is not very different from the old CR in terms of investments in energy innovation. The previous CR was based on FY2012 funding levels, and the new CR lowers investments in energy R&D by less than one percent from FY2012 levels.
The table below shows the recent appropriations legislative history in relationship to FY2012 funding levels. The new … Read the rest
President Obama aggressively called for addressing climate change in his fifth State of the Union address, but ultimately came up short of outlining a clear and compelling vision with the necessary policy scope to address the significant technological challenges impacting clean energy.
Here are my five top take-aways:
1) Demanded Action to Address Climate Change
It is indicative of the sad state of the U.S. climate debate when a mere mention of support for addressing climate change elicits celebration. Nonetheless, the President deserves credit for calling on Congress to take action against climate change and using about 10 percent of his speech to discuss what he would like to see.
“But for the sake of our children and our future, we must do more to combat climate change. Yes, it’s true that no single event makes a trend. But the fact is, the 12 hottest years on record have all come in the last 15. Heat waves, droughts, wildfires, floods – all are now more frequent and more intense. We can choose to believe that Superstorm Sandy, and the most severe drought in decades, and the worst wildfires some states
This is the 5th and final post in a series analyzing and detailing federal investments in clean energy innovation. Part 1 defined “clean energy innovation.” Part 2 broke down the federal clean energy innovation budget. Part 3 took a look at federal investments in clean energy demonstration projects. Part 4 took a deeper dive into clean energy deployment policies.
In the first post of this series, I called attention to the eminent need for supporting a well-developed and funded clean energy manufacturing sector as part of a robust innovation ecosystem. The feedback loops between manufacturing and research is explicitly linked. Even with all the R&D, demonstration, and deployment of clean energy, the United States could lose its competitive advantage over production resulting in the industry (and future innovation) to move overseas without strong policy support for advanced manufacturing. But like many other parts of America’s energy innovation budget, support for advanced manufacturing is rapidly declining.
The figure below shows that investment in clean energy manufacturing has fallen from nearly $9 billion to only $700 million between FY2009 and FY2012, or a 92 percent decrease. Direct spending in FY2009 and FY2010 … Read the rest
The purpose of Energy Innovation 2013 – a half-day conference co-hosted by my organization, the Information Technology and Innovation Foundation, and the Breakthrough Institute – was to discuss the possibility of developing and deploying all of the cheap, high-performing zero-carbon technologies necessary to meet 40 terawatts of projected global demand by mid-century. Most importantly, the conference spurred debate on how the need for clean energy innovation should influence the climate and energy policy debate.
Over the course of three stellar panel discussions as well as follow-on debate via twitter (check out #EI13), a number of themes emerged that merit further debate amongst advocates, thinkers, and policymakers:
It’s Global Warming, Not American Warming
ITIF President Rob Atkinson set the stage for why energy innovation needs to be a policy priority by presenting a straight-forward logic chain: climate change is real and man-made, it’s about developing clean energy technologies that are cheaper than fossil fuel alternatives to drive down carbon emissions, and it’s globally pervasive. Clean energy technologies need to be affordable to all nations, and particularly emerging economies with growing populations that will consume more energy in the coming … Read the rest
This is Part 4 of a series of posts analyzing and detailing federal investments in clean energy innovation. Part 1 defined “clean energy innovation.” Part 2 broke down the federal clean energy innovation budget. Part 3 took a look at federal investments in clean energy demonstration projects.
For the last couple of years, the lion’s share of debate on U.S. clean energy policy has focused on encouraging deployment – or large-scale construction and installation – of low-carbon technologies. By significantly deploying clean energy technologies, supporters say, the United States can encourage integration of emerging technologies in an energy market dominated by entrenched fossil fuel interests, spur cost-cutting economies of scale, and get started on lowering greenhouse gas emissions in the process. However, others argue that there is a necessity to designing well-constructed deployment incentives aimed at directly spurring innovation to address climate change.
A Quick Typology of Deployment Policies
Federal clean energy deployment incentives can be made available through grants and other annually appropriated programs. For instance, the State and Tribal Energy Programs at the Department of Energy (DOE) deploy building efficiency and renewable energy technologies within communities. The New … Read the rest
This is Part 3 of a series of posts analyzing and detailing federal investments in clean energy innovation using the Energy Innovation Tracker. Part 1 defined “clean energy innovation” and Part 2 broke down the federal clean energy innovation budget.
Why Government Investment in Demonstration Projects Can Be Controversial
Transforming the U.S. (and global) energy system from fossil fuels to low-carbon technologies requires a healthy, publicly supported innovation ecosystem that invests in and supports research, development, demonstration, and deployment. But as discussed in Part 2 of this series, America’s energy innovation ecosystem is “hollowed out”, particularly because of reduced investment in technology demonstration projects.
At its very basic level, technology demonstration projects exhibit full-scale models of first-of-kind technologies and systems, as opposed to pilot projects (e.g. an ARPA-E project), which aim to simply prove a technical idea. Demonstration projects aim to prove a technology at commercial scale.
Clean energy demonstration projects are an area of extreme policy debate and controversy for two reasons. First, clean energy demonstration projects are often capital-intensive projects that require significant investment and public-private collaboration, typically invoking considerable attention because of large budgets. Second, … Read the rest
This is Part 2 of a series of posts analyzing and detailing federal investments in clean energy innovation. Part 1, defining clean energy innovation, can be found here.
Clean energy innovation encompasses more than any one policy, whether it is R&D, tax incentives, regulation, or an economy-wide carbon price. Well-designed public investments impact the entire energy innovation ecosystem and fill gaps in next-generation technology development and deployment. Using data from the Energy Innovation Tracker, this post takes a top-line look at the United States’ portfolio of clean energy investments between 2009 and 2012.
The figure below details federal investments in energy innovation since FY2009, which are divided into ‘technology development’ and ‘technology deployment’ categories. In this case, technology development captures all investments in basic science, research and development, demonstration; technology deployment investments facilitate the installation and procurement of clean energy technologies in commercial markets, along with supporting investments in siting and permitting and training and education.
During the past four years, the balance between development and deployment has evolved dramatically, driven in part by increased procurement of emerging and commercial off-the-shelf energy technologies by the Department of Defense, … Read the rest
The Department of Defense’s role in energy innovation and the development of clean energy technologies from basic science through procurement and commercialization has come to the front of policy discussion. This conversation is particularly centered around DOD’s interests in using drop-in biofuels to reduce the department’s significant, costly, and sometimes dangerous reliance on petroleum-based fuels.
According to the Energy Innovation Tracker, DOD investment in basic science, R&D, and procurement of advanced biofuels peaked in FY2010 at $155 million (including ARRA investment) and has fallen to $37 million in FY2012. Ninety-two percent of FY2012 biofuel investment was for research and development.
A November 2012 report prepared by Environmental Entrepreneurs titled, The Economic Benefits of Military Biofuels, finds that meeting DOD’s biofuel utilization targets will generate significant economic activity — between $9.6 and $19.8 billion — and create between 14,000 and 17,000 new jobs by 2020. The report calculates the economic impact of DOD’s scale-up of biofuel usage by starting with the commitments … Read the rest
Last night marked the third and final presidential debate of the 2012 election, and was the first time since 1984 that climate change went unmentioned by the presidential candidates in any of the debates. (“Obviously there are only so many [topics] you can get to,” debate moderator Bob Schieffer noted afterwards. “I had questions about climate change to talk about.”) The election has generally been devoid of serious discussion of climate change and energy innovation, and candidates and moderators alike avoided both the issues in the first and second presidential debates of this cycle as well. Beyond recalling the same rhetoric about energy security used in the last two debates, however, this discussion did highlight the candidates’ positions on federally-funded basic research.
The president observed that “if we’re not making investments in education and basic research, which is not something that the private sector is doing at a sufficient pace right now and has never done, then we will lose the [lead] in things like clean energy technology.” He was right to make the link between smart government investment and technology development, but wrong to focus on basic research. … Read the rest