3. FEDERAL AGENCIES:
Probe finds nearly 700 initiatives focused on renewable energy
Published:
Federal agencies launched almost 700 initiatives focused on renewable energy in fiscal 2010, targeting many of their investments on bioenergy, solar and wind, according to a new report from the Government Accountability Office.
The report builds on GAO's analysis of duplicate programs across the federal government, though analysts do not weigh in on whether any of the 679 renewable energy initiatives are wasteful or redundant. It comes as lawmakers debate the merits of energy investments and how best to cut agency budgets.
Sens. Joe Lieberman (I-Conn.) and Susan Collins (R-Maine) -- chairman and ranking member of the Homeland Security and Governmental Affairs Committee -- requested the report. The dearth of information on renewable energy programs "raised congressional concerns about the ability to identify whether efforts are fragmented, duplicative, or operating at cross-purposes," according to the GAO report.
The result is 174 pages -- plus a detailed inventory -- that lays out the initiatives at 23 agencies and their 130 subagencies. It is bound to become a favorite of lawmakers looking to cut renewable energy investments.
Almost 90 percent of the initiatives supported private-sector recipients, with little less than half also supporting those in the public sector, according to the report. GAO analysts did not estimate the cost of the initiatives and emphasized that the number of programs at each agency did not necessarily reflect their cost.
Senate aides said the report could become a discussion topic at a hearing next week titled "Retooling Government for the 21st Century: The President's Reorganization Plan and Reducing Duplication." The main focus of the hearing, originally scheduled for earlier this month, will be GAO's recent duplicative programs report, which highlights 51 such programs throughout the federal government (E&E Daily, Feb. 28).
Leslie Phillips, Lieberman's spokeswoman, said yesterday that the senator "strongly supports agency investments in renewable energy, but those investments must be coordinated and streamlined to get the most out of taxpayers' dollars."
Some of the initiatives highlighted in the GAO report, however, may already be winding down. The American Recovery and Reinvestment Act pumped money into such efforts, meaning an increase in renewable energy efforts across the government. The future of such investments -- especially in a tight fiscal environment -- is "uncertain," according to the GAO report.
But in fiscal 2010, those investments were thriving.
The Defense Department led the pack in number, with 117 initiatives spread throughout the Army, Marine Corps and Air Force and other subagencies. The departments of Agriculture, Interior and Energy also each had more than 80 renewable energy initiatives.
Bioenergy programs were the most prevalent. The Commerce Department, for example, had nine initiatives that focused on bioenergy in fleets and facilities. USDA had 20 that targeted research and development, including efforts to improve the production of bioenergy from crops.
About half of the agencies' renewable energy initiatives supported solar energy, with the majority focusing on photovoltaic technologies. DOD launched more than 20 percent of those initiatives; 16 initiatives, for example, invested in solar research and development. Those included efforts to develop technologies for use in the Iraq and Afghanistan wars, in which fuel convoys have been targeted by insurgents.
Interior led the way in wind energy, focusing its efforts on permitting and oversight. But many of its initiatives -- and those at other agencies -- did not target wind specifically, instead supporting it along with other renewable energies.
Overall, renewable energy initiatives were evenly split between those that supported one source of energy and those that supported multiple sources. USDA, for example, provided loans and grants to farmers in rural areas for installing all major types of renewable energy equipment. The Small Business Administration also provided support -- in the form of loan guarantees -- to businesses investing in renewable energy sources.
Certain agencies took the lead in specific areas, which GAO separated into four topics: conducting and supporting research and development, using energy in agency vehicle fleets and facilities, providing incentives for commercialization and deployment, and issuing regulations and permits and ensuring compliance.
DOE, for example, joined USDA and DOD in leading the way for research. Almost half of its 51 research initiatives were housed in the Office of Energy Efficiency and Renewable Energy. EERE funded 24 initiatives related to lowering the cost of renewable energy -- a portfolio no doubt related to the $1.4 billion it received through the Recovery Act.
In addition to the stimulus, the GAO report identifies other possible motivations for the influx of renewable energy initiatives. Renewable energy tax credits, for example, resulted in almost $8.9 billion in lost revenue in fiscal 2010. Agency officials also pointed to an increased focus on renewable energy in the administration as an impetus for some programs.
But "at the same time, several officials noted uncertainty as to the future level of their agencies' renewable energy efforts due to potential budgetary constraints," GAO analysts wrote in the report. "Others observed that, although there is interest in increasing renewable energy efforts, such as installing renewable energy projects at their facilities, funding is limited and that they are looking into the possibility of financing these projects through third parties, such as private energy services companies."