U.S. Department of Energy: Green Energy Efficiency Spruces Budget Practices

Abstract

The U.S. Department of Energy (DOE) oversees the United States’ energy-related affairs. The department prepares an annual budget by evaluating its fiscal position: the amount of federal funds it received each of the last three to five years, its expenditures’ relationship to these appropriations, and the factors causing its financial situation. Then, since the recent sequestration reduced departments’ federal appropriations, the DOE must critically prioritize its most effective programs and amend or terminate others. This paper’s format follows this budgeting process and analyzes four policies’ costs and benefits. The findings suggest the department recommend that Congress retain or reinstate enhanced loan guarantee programs, strengthen and reestablish the advanced energy manufacturing tax credit, maintain and fortify the renewable energy production tax credit, and eliminate the three to eight costliest fossil fuel tax expenditures for companies whose revenues surpass a defined threshold.