Pub.1 2019-2020 Issue 3

The Overall Key Priorities from the Budget Message • Better Trade Deals • Preserving Peace Through Strength • Overcoming the Opioid Crisis • Regulation Relief • American Energy Independence Energy Takeaways from the Trump 2021 Budget T he Fiscal 2021 budget proposal was released February 11. President Trump proposed a record $4.8 trillion budget that is taking a firm position on wasteful government spending. While Congress decides what to fund, the budget request is a nice reveal for the key priorities and, shifts inside the Department of Energy and energy related agencies. The following is taken from the DOE chapter of the actual budget document. Funding Highlights: • The 2021 Budget makes strategic investments to maintain global leader- ship in scientific and technological innovation, including basic research in support of the Administration’s efforts to foster industries of the future. The Budget also supports aggressively modernizing the nuclear security enterprise that underpins the safety and security of Americans both at home and abroad. • The Budget proposes to sell federally-owned and operated electricity assets, which would save an estimated $4.1 billion over 10 years. Selling these assets would encourage a more efficient allocation of economic resources and mitigate unnecessary risks to tax-payers. • The 2021 Budget requests $35.4 billion for DOE, an 8.1-percent decrease from the 2020 enacted level of $38.5 billion. The Budget for DOE reflects the critical role DOE has in promoting energy dom- inance and economic growth and in protecting the safety and security of the American people. The Budget enables advancement of American leadership in science and technology, a cornerstone to achieving these goals. Ameri- can ingenuity combined with free-market capitalism can drive tremendous technological breakthroughs, leading to improvements in America’s economy and environment. The Budget focuses resources on early-stage research and development (R&D) of energy technologies, where the Federal role is strongest, while addressing the need to support later-stage R&D in targeted areas where there are unique challenges. Emphasizing the appropriate role of the Federal Government ensures that taxpayer dollars are being effectively used while implementing fiscal discipline. The Budget recognizes the emergence of the United States as a top producer of energy in the world, becoming the world's ’s largest oil producer in 2018, transitioning to a net petroleum exporter in late 2019, and projected to become a net petroleum exporter for the 2020 calendar year. As a result, the commercial sector ably produces the energy needed to guard against supply disruptions in the world market. The Budget proposes a slight reduction in Government ownership of petroleum products to fund higher priorities across the energy landscape, including AI and quantum science. The Administration continues to seek strategic opportunities to utilize America’s resources and innovative technology to strengthen America’s position as a world leader. The Budget also makes strategic investments to accelerate the development of the next generation of American energy technologies and solutions. This includes $2.8 billion across the Applied Energy Office portfolio to support early-stage R&D and targeted later-stage R&D. This investment helps enable the private sector to develop and deploy the next generation of solutions to usher in a more secure, resilient, affordable, and integrated energy system. [This budget] addresses unnecessarily burdensome energy efficiency regulations. Through research and reasonable regulatory actions, DOE will seek opportunities for further improvements in energy efficiency, with an emphasis on solutions that promote consumer choice, the comfort of building occupants, and the performance of labor-saving products, devices, and equipment. Building on the recent light bulb rule success, DOE will pursue improvements to other household appliances through its standards program to improve product efficiency and meet the everyday needs of American households. In addition, DOE will demonstrate the benefits of the revamped Process Rule saving time and money for stakeholders and tax-payers alike through more effective implementation of energy efficiency standards program. The Environmental Protection Agency is facing cuts consistent with what has been requested in past years. A 26% reduction in funding and elimination of 50 programs that have been deemed wasteful or duplicative and/or outside the EPA’s core mission. The 2021 budget has proposed $6.7 billion in total EPA spending. The administration aims to prioritize core functions. Specifically: • The DOE’s Office of Energy Efficiency and Renewable Energy (EERE) reduces by 75% • While the DOE has not identified specific goals for the Energy Storage Grand Challenge program, $97 million has been dedicated to supporting it, with $40 million also going to “Grid Storage Launchpad” inside the Office of Electricity • The Bureau of Ocean Energy Management's total budget proposal would be reduced to $188.8 million for fiscal 2021 from $191.6 million enacted in fiscal 2020. The agency would nix funding to develop a new offshore oil and gas plan, confirming that the Trump administration's push to dramati- cally revise the current five-year plan is "on hold." • The budget request for the Pipeline and Hazardous Materials Safety Administration would fall 1.8%, from $281 million in fiscal 2020 to $276 million in fiscal 2021. Spending on the agency's pipeline safety division would be cut 2.8%, from $145 million to $141 million during the same time period. Article published with permission from the Domestic Energy Producers Alliance (DEPA) and Jerry R. Simmons , Executive Director of DEPA. 22 UP DATE