 Good afternoon everyone. My name is Carol Werner. I'm the executive director of the Environmental and Energy Study Institute EESI We're very very glad that you're here with us this afternoon and we look forward to Holding this annual briefing that we have been doing for a number of years I'm sure it's like more than 10 or 12 years now that we have been holding in partnership with the House Renewable Energy and Energy Efficiency Caucus, so it has always been an important opportunity to have a chance to have a senior Department of Energy official here to walk us through the administration's budget request On energy efficiency and renewable energy so that we can all better understand what really are the key programs Why what's being achieved? So that it's always a very very helpful Exercise to go through so that we all learn a lot more about what's going on And we are also always very glad to have Fred to be joined by Fred Sassin from the Congressional Research Service Since CRS is such an important part of how the Congress is able to really do It's work and in terms of the information and analysis that is provided to members Through through that and and of course our third panelist is Scott Sklar Who not only is You know has been a very very experienced and expert in terms of So much of sustainable energy and in terms of renewable energy and working on efficiency issues But really looking holistically at energy policy and of course while Scott is is an adjunct at George Washington University And is doing many many different kinds of things through his own business Company at the same time We also work very very closely together in that he chairs the steering committee for the sustainable energy coalition Which is an important piece of Work that we do with the Congressional caucus on renewable energy and energy efficiency so at this time I would like to introduce our first speaker who is going to Lead us through DOE's efficiency and renewable energy budget really talk about the priorities what what this represents and and why what the key goals are and We are very very glad to be joined to do this by Mike Carr who is senior advisor and the EER e principal deputy assistant secretary At DOE for the office of energy efficiency renewable energy and of course Mike has been at DOE for a number of years But prior to that he also spent a number of years here on the hill On the Senate side working on energy issues He's also been in other government agencies as well as working on energy in the private sector So we're delighted to have Mike with us this afternoon Thanks, Carol. I appreciate having me here This is actually kind of a homecoming this was this was where I worked for eight years And it's been a heck of a lot of time in this in this room usually facing that direction Or sitting back there But But it's always good to come back in and talk to folks here I also want to recognize Fred Franciscine who was at CRS You know and very helpful back when I was when I was on the committee here and and Scott who's been a Constant voice on these issues for Yeah For a long time, let's see a good consistent voice so I Will try to try to not make this too dry a presentation It's you know ERE is a very big place and so that is a somewhat of a somewhat of a dense topic to go through our budget As I think the secretary has pointed out You know if you if you look at our three pillars Aggregated it looks it looks like a lot But we have ten technology programs within those three pillars and each of those those three pillars themselves are Roughly equivalent to another another pillar within the R&D programs within DOE So Let me let me try to sort of muscle through it somewhat quickly The the defining goal within ERE though is to We're trying to focus on the competitive Opportunity that is created by the technology suite that we work on Across the clean energy space and we believe there is a giant Global opportunity on that Our specific goals you can see up here The the administration has set some clear goals for energy efficiency and renewable energy and Although we have programs that that work on every bit of this One thing that I would like to highlight right up front is that just within President Obama's second term We've issued 12 final energy efficiency rules For appliances which will save an estimated 500 million metric tons of CO2 and Around 87 billion dollars for consumers and electricity bills by 2030 So that's an example of the sort of the the outsized impact that a lot of our work can have So in order to Support the groundbreaking science and innovation that's essential for achieving the president's vision We we support some of the best innovators in the country and businesses These are leaders who research develop demonstrate and deploy High-impact cutting-edge technologies that make clean energy just as affordable and convenient as the traditional forms that we're all used to So we break we break our work down into three fundamental pillars sustainable Transportation energy savings in homes buildings and manufacturing and renewable electricity generation We we do our work Guided by our our five core questions one is this a high-impact problem What you know, will this make a difference when we achieve our goals and then the will will the ERE Specific investment make a large difference relative to what the private sector is already planning on doing And then have we made sure to focus on the broad problem that we are trying to solve and are we open to new ideas? approaches and performers to achieve that goal and How will the ERE funding? Result in enduring economic benefit to the U.S. Is it is it part of our grounded long-term strategy? Is it a long-term opportunity for the country? and Why is this specific thing that we're doing a proper high-impact role of the government versus something best left? potentially to the private sector to address on its own so these are the questions that are our Directors ask every time before they create a new funding opportunity and by asking these critical questions and Making what we call the go-no-go decisions on continued ERE investments It's clear in that the recent product that we've had incredible recent progress Across all of our sectors So just let me give a couple of highlights in transportation in 2014 The five-year super truck program exceeded its goal of a 50% improvement in freight efficiency one year ahead of schedule in long-haul trucking and thanks in many regards and Also in transportation thanks in many regards to DOE investments and electric drive technology Which is now is now more widely available than ever before And in fact all the domestic manufacturers now feature a plug-in vehicle Either available today or in the near future that uses the technologies that we've supported in this area Also, I would I would highlight that we now have three commercial cellulosic ethanol plants have come online That are their first that are first-of-a-kind plants and that were catalyzed by DOE support Oops Renewables in just the first four years of the 10-year Sunshot initiative we're nearly 70% of the way toward our reducing our goal Towards to reducing solar PV costs in that's $2 a watt for Residential and $1 a watt for commercial deployments The cost of a US wind energy has decreased by more than a third in just the last five years alone and The first tidal power plant in the US was connected to the grid in energy efficiency as recently as 2012 replacing a standard incandescent with an LED equivalent might have cost Around $50 per bowl today's LEDs are brighter have better color quality and and many cost less than $10 With a life expectancy of over 10 years these bulbs Were already a solid investment economic investment at $50 a bulb and at $10 or less. They're just an absolute no-brainer And according to our our projections by 2030 LED lighting will save Americans over 30 billion dollars a year in electric costs Just in this one technology alone And finally through our better buildings challenge more than 250 DOE partners are on track to achieve energy savings of Two and a half percent each year and have saved $300 million already due to less wasted energy since the challenge began We talk a little bit about our what we consider our return on investment We strive to ensure that every project and initiative we invest in has the opportunity for a healthy return on investment For the taxpayer dollars invested for example over a 30-year period ERE funded combustion R&D on Heavy-duty trucking efficiency resulted in a net benefit of More than 70 billion dollars. That's a 70-to-1 return on investment an ROI that any company would envy And as we can see through these these statistics these technologies are ready for deployment now and represent a huge near-term economic opportunity According to a new recent report by Bloomberg 310 billion dollars was invested globally in clean energy last year a growing market That's already creating businesses and supporting jobs through the research development and deployment of the clean energy technologies At DOE we believe that we should continue the necessary and appropriate investments to ensure the clean energy technologies today and tomorrow Are not only invented but manufactured here in America in order to maximize the economic return for our ongoing R&D efforts There's a give you a sense of the ERE budget trends We've seen in general a steady incline on our budgets over the past 10 years Mostly coming off of a significant investment made in 2009 through the Recovery Act Since then we've held mostly flat and with some moderate increases Do thanks to thanks to into pretty steady congressional support and I think a good recognition that we've We've in fact, we've invested effectively in a suite of really beneficial technologies So moving on to our 2016 budget a 2016 budget reflects the American the administration's strong commitment to clean energy with increases across all our sectors We're requesting 2.7 to 2 billion dollars towards achieving our mission to create a sustainable American leadership in the transition to a global clean energy economy In the interest of time I'll highlight just a couple of points from each of our technology offices and and there's more information in the slide deck itself, and I'm happy to address anything in the Q&A at the end and Derek Ramos here of ERE Congressional Affairs is also happy to help get any questions answered if you have more specific things that I don't have the answer to So let me go on to vehicles This is the the vehicle technologies Subprogram which includes three Sorry, the vehicle technologies program includes three sub programs. What there's vehicle technologies itself There is Make sure that these are all separated out I guess we do have separate slides for all so let me just start with the vehicles program in 2014 We reduced the production of the production cost of electric drive vehicle batteries by 40 percent from the 2012 baseline cost according to our Recently released report revolution now some private sector and analysts say there is a relatively clear technology path to two hundred dollars a kilowatt hour by 2020 which is another 50% reduction and DOE's goal takes that further to $125 per kilowatt hour by 2022 at that point ownership costs for 240 mile electric vehicles would be equal to that of any standard vehicle today We also completed a successful R&D and demonstration of a four-cylinder clean diesel engine for a full-size pickup with fuel economy standards of Standard improvement of 40% achieving an additional 7 to 10 miles per gallon on average in savings and In distance I guess and and complying with all the new emissions standards The 440 million dollar proposed vehicle budget would help ERE continue and advance these successes To two points to race here are the EV everywhere program at about 250 million dollars Which is a DOE wide initiative that works to prepare the US to produce a wide variety of plug-in electric vehicles and With with the goal of them being just as affordable and convenient and frankly more fun than gas power vehicles by 2022 and Super and our super truck to initiative building on the success of our Super truck initiative to reduce long haul Or improve long haul freight efficiency This will will begin will try to leverage those successes into the rest of the heavy and medium-duty fleet So bioenergy technologies a second pillar of sustainable transportation develops cost-effective technologies that that are a key part of reducing our dependence on imported petroleum and Substituting those with domestically produced non-food biomass resources By 2030 the US could produce more than 1 billion tons of sustainable biomass resources according to our analysis Which that can fuel cars trucks and jets and make chemicals and and including producing power All of which lead could lead to a 30% decrease in our current petroleum usage And that's not including the fuels from algae And this is why Erie has invested in this emerging industry and and has successfully reduced the cost of converting feedstocks to biofuels the 246 million dollar bioenergy budget has as a number of priorities You can see here one. I want I'd like to highlight is our transition into investing in feedstocks in order to develop and validate technologies to help meet this This cost target that the 2017 biomass feedstock cost target, which is still a significant portion of The cost that we need to knock off And to pursue and pursue new research in advanced feedstocks and develop pathways new conversion pathways for those feedstocks Fuel cells develops technologies to enable fuel cells to be cost competitive in a diverse and diversity of applications especially light-duty vehicles, but also including Other other modes and to enable renewable hydrogen to be cost competitive with gasoline We've had a great deal of success in reducing the manufacturing cost of automotive fuel cells To now 55 dollars per kilowatt in 2014 more than a 50% reduction just since 2006 With the budget of about a hundred and three million ERE would invest in reducing the continuing to reduce these costs and increase the durability of fuel cells and advanced technologies to reduce the hydrogen production delivery and storage costs as well as invest in grid modernization projects to enable this production now in renewable power The first of the renewable power technologies I'll talk about is a solar energy office Which we Have under the the Sunshot initiative banner Couple of successes in this area the one highlighted by the Sunshot incubator which since 2007 has provided early-stage assistance to small businesses and brought in new products and services to the marketplace Leveraging about a hundred million dollar investment Resulting in about two billion dollars in subsequent private sector funding The budget there of three hundred and thirty six Million would support the solar programs goals by investing in Best in class solar power Concentrating solar power innovations at the one to ten megawatt scale Focus in in on soft costs in for commercial scale and residential scale PV These soft costs such as permitting and financing costs are an increasingly higher percentage of the overall cost of solar In fact, since the beginning of 2010 the average cost of solar PV panels has dropped more than 60 percent And the cost of the overall PV system has dropped by 50 percent Over the last three years alone However, the installed cost of of solar in Germany with its much lower solar radiation Then then here is is less than half the cost of installing installing solar in California Which shows just the level of improvement we still have to make in that area And so if we can decrease those non-hardware hardware soft costs we can Make make these technologies available to a much more of the country in Wind energy We work to establish We're working to establish a competitive us offshore wind industry through cost reductions focused on technology R&D demonstrations and elimination of and Reduction of market barriers as well as enabling the seamless and cost effective integration of wind power into the grid Wind deployment has grown rapidly in the past few years in 2013 the total cumulative us wind installed capacity Was approximately 65 gigawatts or four and a half percent of total us consumption And with roughly 80 percent of us electricity demand coming from the coastal stage States offshore wind is a crucial resource and a huge opportunity for the country to add to our clean energy mix To that end the EREs has picked three offshore wind technology demonstration projects that are in their the mid stages of development in Virginia, New Jersey and Oregon to develop offshore wind systems that we intend to be ready for commercial operation by the end of 2017 The budget of 145 million will help ensure this project is completed as well as supporting innovative wind turbine R&D both for onshore and offshore and Identify performance barriers and adapt solutions to improving the cost and performance of utility scale wind plans In water power Water power works to tap into the power of the oceans waves and tides While supporting research and innovative technologies capable of generating renewable environmentally responsible and cost-effective electricity from the US Water resources across the country Our assessment of wave and tidal energy resources show that the potential exists to generate One one point. I guess it's one thousand four hundred and twenty terawatt hours I don't know what the next one is up from terawatt Electricity each year off the US coast a budget of sixty seven million dollars For this program allows for the design and front-end engineering of full-scale grid connected open water wave test facility To help unlock this potential This facility would be capable of testing and demonstrating wave power converter components and systems under operating conditions, which is a key component to allowing this industry to develop in the United States Hydro power at Dams is a proven renewable resource and it provides the largest share of US renewable energy generation currently And that's why in this budget we would also include the initiation of hydro next a sub program to develop Low-cost modular technologies for hydroelectric generation at non-powered dams today Geothermal technologies Supports research and development and innovative technologies that reduce and risk the cost of bringing geothermal power online In partnership with industry academia and DOE's national laboratories So the exciting Place here is that the next generation advances in subsurface technologies such as fracking that that people are aware of And high-end horizontal drilling Technologies will enable access to more than a hundred gigawatts of clean renewable Geothermal energy and we've already had a few successes here or mat technologies leverage DOE funding to demonstrate the nation's first enhanced geothermal system project to supply Electricity to the grid generating an additional 1.7 megawatts of power at its desert peak site This is this is upgrading an existing a geothermal Site using the latest technology and Baker Hughes completed a preliminary design for measurement while drilling system for geothermal applications capable of operation at 300 degrees Celsius for 50 hours and at depths of up to 30,000 feet and complete with a mud-pulse telemetry system. Don't ask me what that is a budget of 96 million dollars would enable this geothermal technology office to invest in this subsurface technology and engineering R&D specifically with the Frontier observatory for research in geothermal energy forage Which this budget would help Joe geothermal technologies launch and implement phase three of the forge initiative to advance to a Site-down selection for and to begin field operations Now in the energy savings pillar first buildings We know that our homes and buildings cost the country more than 430 billion dollars a year to power and they consume more than 73 percent of the nation's electricity Contribute and contribute to 40 percent of the nation's greenhouse gas emissions So we're leading the way to continually develop cost-effective energy saving solutions that make our country run better through increased energy conservation and efficiency for example 450,000 homes have been upgraded through the better buildings residential program and home performance with energy star program This has led to up to 25 percent savings on energy bills across 43 states With a budget of 264 million dollars BTO Will develop and promote technologies and practices that when fully deployed would reduce US building related energy use by 50 percent by 2040 saving roughly 200 billion dollars for consumers and businesses Advanced manufacturing The global man the global landscape here is is is changing in ways That that the companies must engineer and manufacture new products The pace of innovation is faster and product development cycle times are getting shorter and shorter Yesterday the premium was on cost Today it's really on innovation So in order to gain a sustainable competitive advantage in the United States We need to invest much more in innovation to take more risks and have the right talent to carry technology for Within ERE's energy efficiency portfolio the advanced manufacturing office or AMO Focuses on targeted technology on a targeted technology portfolio that accelerates research development demonstration and deployment of emerging technologies to increase both increase energy efficiency and productivity and The competitiveness of US manufacturing in global markets A.O. AMO was directly involved in establishing the national network for manufacturing innovation and MIs and the Institute for Advanced Composite Manufacturing Innovation which was stood up this year Made up of more than a hundred industry and academic partners and members In its first year of operation critical materials Institute researchers have already filed seven patent disclosures Led by Ames laboratory laboratories in Iowa The CMI is a five-year investment of up to a hundred and twenty million dollars and serves as the nation's premier research and development and Deployment institution for critical materials their alloys and their oxides In fiscal year 2016 ERE's budget request of four hundred and four million dollars Continues to support R&D facilities where industry and research institutions Conduct shared pre-commercial R&D on high-impact cross-cutting advanced manufacturing Innovations to advance their readiness towards domestic commercial production for example To six new individual competitive funding opportunities of approximately twenty million dollars each that will be released in AMO priority foundational manufacturing technology thrust areas The full funding of two new clean energy manufacturing innovation institutes That will also provide annual support for existing facilities including four institutes one energy innovation hub and one manufacturing demonstration facility and The technologies that enable American manufacturers to use the critical materials more efficiently and reduce or eliminate the need for Materials that are subject to supply supply disruptions Almost there the federal energy management program is also in the energy efficiency pillar As America's largest energy consumer the federal government must lead by example The federal energy management programs $43 million budget request will enable the federal agencies to meet energy related and other sustainability goals and to provide energy federal energy leadership and by leading by example one of the mechanisms we're using is in we used in fiscal year 2014 Through a competitive grant process the federal energy efficiency fund or FIFA Awarded $5 million to nine different energy projects within the government many of which are first-time implementations of these technologies that have been valued with a total investment of a hundred and twenty million dollars So there's a high degree of leverage in these funds Weatherization Since the the weatherization in a governmental program the whip since this program began in 1976 it has helped improve the lives of more than seven million families by reducing their energy bills Whip works with state and local organizations to speed up the deployment of clean energy technologies and practices by a wide variety of government community and business stakeholders a couple of successes to highlight here whip exceeded its 2014 performance goal of 24,600 home retrofits for low-income families by fifty percent through the weatherization assistance formula grants program and Whip successfully recruited 15 to 20 private sector partners for our better buildings initiatives which help Spread at no cost to the to the government our technologies and best practices across the country the budget request of 18 million dollars will help whip award and manage Its weatherization assistance formula grants and provide weatherization retrofits for approximately 33,000 low-income families across the country It'll also allow us to provide competitive grants for weatherization assistance in the underserved multi-family sector and award and manage 56 formula grants to help state governments Expand energy efficiency and renewable energy policies and technologies this is finally our our our Mission critical cross-cutting support programs first is strategic programs With a request of twenty seven point eight million dollars to increase the overall effectiveness and impact of all the areas technical programs specifically strategic programs launched lab core this year Which trains and empowers DOE's national laboratories to accelerate the commercialization of clean energy innovations and increase Their impact We also launched the national incubator initiative for clean energy my favorite acronym nice Which provides critical support to bringing startups closer to the market readiness? Nice will create a national network Support to support and serve the clean energy small business and entrepreneur community Across DOE there are cross cut there are these cross-cutting initiatives. I'll mention a few that are key to EREs portfolio EREs focused on enduring on ensuring the success of American the American manufacturing sector and therefore each program office Contributed to a cross-cutting clean energy manufacturing manufacturing initiative or CME In and in addition In order to maximize the contributions of all ERE technologies to a reliable and secure electrical grid ERE has undertaken a comprehensive grid modernization initiative with partnership across the DOE International labs to develop technical tools as well as design as the design and testing of integrated Energy ecosystems to help realize the full potential of the opportunities of a modern grid So let me just let me just close By saying that that the sustainability and security of the US energy resources We believe are the defining Issue of our time and an immediate and urgent issue for us to address The above the Obama administration continues to show strong support for energy efficiency and renewable energy activities Through these increased budget requests and a strong support of policies that were what will lead to long-term clean energy solutions To help meet our nation's energy demands It is clear that ERE will be a critical player in in America's energy future and in our continued competitiveness in this growing Clean energy technology race across the globe So some there's a lot at stake and we feel like we have a lot of work yet to do But we are on the cusp of really achieving something great The clean energy revolution is real and it is happening and then we believe it's up to all of us to keep that momentum going Thanks for your time, and I'm happy to talk at the end Thanks so much Mike obviously there was a ton of information there and hopefully you'll be able to Formulate some some questions, and it's really worth delving into because there is so much interesting Programmatic information here. I want to recognize One of our Partners with regard to this briefing as I mentioned at the outset that We've been holding these budget briefings every year for a lot of years in in conjunction with the House Renewable Energy and Energy Efficiency Coalition and Many times either the one of the one or both of the co-chairs or the staff will Be able to be here as as part of that the House Coalition is chaired by is co-chaired by congressman reichert of Washington State and by congressman van Hollen of Maryland and Robert Beastman who is with congressman reichert is here and on behalf of the Of behalf of the caucus you could say a few words We would welcome you that would be terrific, and it's a good chance to recruit new members Everyone my name is Robert Beastman. I'm with congressman reichert. Hopefully our speakers aren't putting you to sleep yet Just want to thank ESI For providing speakers for this briefing and for the speakers for taking time to talk about the importance of renewables If your bosses have any interest in joining the caucus feel free to reach out to me at extension five seven seven six one You love to have you join the caucus or if you have any ideas about renewables. We'd love to hear it So thank you for coming And so now we will turn to Our speaker Fred is seen from the congressional research service for his take and kind of an overview analysis of Looking at the EER budget Fred Do you want to come up here? Well Can I do it from here just for the beginning and then I'll move over to the podium? As most of you know CRS is required by law to be non biased and non-partisan So before my remarks on the budget, I must make a formal disclaimer Well, the truth is I'm not really Fred from CRS And my colleague is not really Scott from Stella Corporation Surprise We're actually Dusty and Billy from the rock music band ZZ top Yes, it might be hard to recognize this without our electric guitars But maybe this will help Oh my god, look at you No bias no partisan that you'll find out So as you can see in reality I cut off my beard to conceal my true identity from CRS But Scott is another story Like Mick Jagger of the Rolling Stones Scott loves his rock star persona and as captain of his own company. There was no pressure for him to hide his identity Well, I guess all these years and government caused my sense of humor to dry up since I'm not getting much laughs here And you can obviously see why I gave up on careers in music and in comedy Instead I chose a much more Exciting career to work for Congress Okay, let's get on with the rest of the CRS fact-checking putting my policy face back on Everyone should have a hard copy of the slides in the presentation If you don't this will all be on the website later I will refer to the slides by number Which is shown in the bottom right hand corner of each slide Also note that some slides are shown with a dark blue background. Those are a little different their index slides Each of which lists a group of slides that follow immediately after it just to help you kind of guide through so let's start with slide to entitled outline Which provides an order list of the blue index slides that can help you quickly find different sections of the presentation If you're just looking for pieces of it So I'm just going to motor through these I'm not going to go through all the details plus really Mike's already done that so My job my task was just to hit highlights and show you where the main changes are in funding For example slide 3 a blue index slide identifies the five slides in the overview section Slide 4 on highlights shows that the proposed 809 million dollar increase for eere Accounts for about one third of the total DOE increase of about 2.5 billion Slide 5 lists the administration's goals for cutting oil imports and for advancing US leadership in the global markets for clean energy Unless specified otherwise, I believe these goals are stated relative to a 2010 baseline Slide 6 shows the key national interests addressed by eere's clean energy focus namely international competitiveness climate change and oil imports Slide 7 stresses that the budget comparisons employ FY 16 and FY 15 differences and notes that most figures are rounded off for simplicity Slide 8 describes the four functional groupings or themes of major program areas that DOE uses to organize its account lines The four themes are sustainable transportation renewable electricity energy efficiency and corporate management Slide 9 a blue slide outlines the section on funding changes by each of the four themes slide 10 Shows that DOE sustainable transportation theme brings together the vehicles bioenergy and hydrogen programs with a combined increase of $191 million Slide 11 lays out the $189 million increase for the rest of the renewable energy programs Which are focused on electric power production? Water power is not included in my slides due to the small increase Slide 12 covers the major changes for the rest of the energy efficiency programs for which DOE seeks an increase of $388 million Slide 13 lists the changes for corporate management and in-house activities which cover facilities program direction and strategic programs Slides 14 through 16 describe the major funding changes for specific programs This is where you might want to drill down a little bit and help you get to whatever the most interesting programs are for you or for your office Note that manufacturing vehicles would get the largest dollar share of the increases Slide 17 introduces the next section which provides a more provides more details about specific programs The program slides cover both goals and funding Slide 18 shows the goals and funding increases for the manufacturing program The main increase is sought for advanced manufacturing facilities Also a sizable increase is sought for manufacturing R&D projects Slide 19 breaks down the increase for the facilities portion The larger share is slated for two new clean energy manufacturing institutes DOE says those institutes support the president's national network of manufacturing innovation Slide 20 identifies components of the increase requested for the R&D projects Slide 21 notes that for the vehicles program the main priority is for plug-in electric vehicles to achieve parity with conventional cars Largest funding increases for battery and electric drive technologies Smaller, but still hefty increases are sought for outreach and deployment materials technology and fuels and lubricants Slide 22 provides some details about the increases for those four vehicle technology sub-programs Slide 23 covers the goals and increases for the solar program. The main goal is power cost parity by 2020 Slide 24 breaks down the increase sought for buildings energy efficiency The largest increase for emerging technologies would focus on computer technology grid integration and new technologies for air conditioning and refrigeration Increases are also sought for residential buildings appliance efficiency standards and building codes Slides 25 and 26 present goals and activities of the geothermal program Slide 25 shows the cost reduction and capacity development goals for the hydrothermal sub-program The main focus is on sensing and drilling technologies to target and develop what DOE calls blind resource areas These resources are mainly in the western United States Slide 26 describes the long-term goals of the enhanced geothermal systems or EGS An MIT study from a few years back suggests that at a depth of about six miles There should be usable in a much larger resource nationwide, not just in the western states The focus there is on adapting Technology that has parallels to oil and gas fracking technology, but perhaps with even greater technical barriers Slide 27 covers wind energy Energy production cost targets are cited for both land-based and offshore wind equipment Previous support for offshore wind farm demonstrations is underway This request seeks additional funding for technology initiatives including rotors drive trains and public-private partnerships An increase to address market barriers would focus on offshore wind permitting environmental impacts and grid integration But for this year's request the main focus of that sub-program is on Environmental impact mitigation for eagles and for other wildlife Slide 28 on bioenergy shows goals for drop-in fuels and for algae biofuels Funding would increase slightly for bio refinery pilot projects and to raise the yield for the algae feedstocks Slide 29 on grant programs describes increases sought for weatherization and state energy grant programs Also funding is sought to support a new local government grant program Do you propose something like this last year? I don't believe it got any funding It was a smaller amount than and it was combined with Something else having to do with other projects Slide 30 notes that 25 million is sought for another year of the critical materials hub which especially supports the manufacturing program This would be the last year of that funding For the building energy efficiency hub another year of funding is not requested However, there is a request for 10 million and competitive funding for small and medium-sized commercial buildings Which was the focus of the? building's energy efficiency hub Which has gone through evolution is now known as PSU Okay, after slide 31. I've included some additional reference material This will not show up in DOE's presentation. So it's kind of my effort at value added Slide 32 on context provides some background on the innovation process and demonstration projects The developmental gap between R&D and commercialization of technology poses some key financial risks for private companies Demonstration projects try to help bridge that gap, but tend to be expensive and thus controversial in the budget process Or I should say often controversial, but not necessarily always slide 33 Introduces a section that puts energy efficiency R&D and renewables R&D funding in The historical context of spending for other DOE energy technology R&D programs Slide 34 has a pie chart that shows a long-term view of the relative funding shares For the four main energy technology programs nuclear fossil renewables and efficiency Slide 35 Shows the relative shares of energy R&D funding for three different historical time periods I get this question a lot In my office from staffers The most frequent usually is you know the last ten years or so But I've also given you some deeper historical perspective here And you can see for the longest term funding for nuclear and fossil clearly dominate in the most recent period There is a more even distribution slide 36 presents a table with the energy Program funding breakdowns for the most recent two fiscal years 14 and 15 and the request for FY 16 Slide 37 takes that table and puts it into three pie charts Which give a visual picture of the relative shares of energy technology funding? Those two fiscal years and the new request it does not show funding sizes Just the portions of the total for each of those fiscal years Slide 38 identifies key national interests that shape the framework of issues which in turn Forms the structure for most energy policy debates So any mix of all these factors often come into Things that you have to be concerned with when this comes up to the floor for a vote Slide 39 might be the most important one for the congressional staff that lists some additional resources At CRS that may be helpful to you when you work on these budget issues also I have a report underway on EERE Appropriations It will look like this. This is a rough draft that I'm working on right now, which will soon be available for congressional staff So that's all of my Hardware Discussion but finally I need to make one more one last CRS disclaimer feel bear with me Many of you know the famous American Commentator will Rogers or maybe you don't But he wants Not by much When once asked about the extent of his knowledge on government policy Rogers once famously remarked that all I know is what I read in the newspapers. I Am today in a directly parallel situation because All I know is what I read in the DOE budget documents So if you have any difficult or tricky questions today about the EERE budget Please direct them to DOE's presenter my car Not to me Thank you Thank you, and I think it's always so interesting in terms of looking at this kind of analysis and putting things in Into a context into a historic context so that we can really look at at how things have changed Over the years and as we really kind of look at the whole proportionality with regard to the energy budget and And and besides it's also really important to know that CRS really does have a sense of humor I Now like to turn to our third speaker to Scott Sklar Who is the chair of the sustainable energy coalition steering committee? and the president of the stellar group and Also an adjunct at GW Thank you. I Worked up here for nine years in the u.s. Senate In energy and military affairs in the 1970s, so I've been in this field a long time And I started with air just like all of you And I teach two interdiscipline courses at GW On sustainable energy sponsored by the engineering school the law school the business school and the science part of the Arts and Science School I put on the table outside the 30 studies. I Require my students to be familiar with and these studies in aggregate show that with technology We have today We can meet most or all of Global energy needs our u.s. Energy needs With the portfolio of high-value energy efficiency and renewables Sustainably there are no peer-reviewed studies by the way on using Traditional energy sources Sustainably so just a just a thought I thought rather than nitpicking, which is I've done for the last decade doing these I Would try a different tact with you to sort of end this up and keep it spunky This is a chart that McKinsey and company put out on sort of the 12 disruptive Technologies and these are the technologies frankly that are going to drive our economics, all right, and so you can see a renewable energy the traditional Oil and and gas fracking technology Advanced materials and by the way why you can have and why Oak Ridge National Labs is so important in the portfolio is Some of the greatest successes in photovoltaics Offshore wind marine technologies LED solid-state lighting and an energy storage is because of the material advanced material science Renaissance we are going through right the second none of this could happen without this disruptive Technology coming along at the same time 3d printing many of the Components that you see in advanced renewable systems and telecom systems are made through 3d printing technologies This is astounding energy storage. We are in a battery renaissance for my business where I blend all this energy efficiency and renewable energy in the private sector globally Energy storage I work with 60 different kinds of battery materials from over a hundred companies Not only to be the materials are becoming more diverse and lower cost They are lasting longer and so what appeared to be what I'm doing with the military Thin film batteries is just beyond science fiction That I can ever report here without getting jail Mobile internet and all of the information technologies cloud technologies, you know You think of that in computing, but it's in fact We're using them for smart information systems on energy loads with energy bills with distributed generation With energy efficiency with smart thermostats Apple didn't spend a few sorry Google didn't spend a few billion dollars for the nest thermostat Because they thought it was cute. They are planning to go into linking information and buildings and behavior together So this blend of disruptive technologies is what's going to drive not only the US economy But the energy economy as well This is where we're going although with fits and starts because the traditional utility industry obviously doesn't want to change as The traditional telephone industry wanted to stop cellular and wind that it would never be profitable Well, here's the same thing that's happening is we're going to take We're moving from central station dumb power plants With transmission distribution lines to the load to central station smarter plants with energy storage Combined heen power system renewables and smart web-enabled Efficiency and low reduction and that is the self-healing grid of the future. It will be more economic It will be more reliable. It will be cleaner. It will use less water by the way energy From cradle to grave uses more water in the United States than does growing food So if you are concerned about the water crisis, you damn well better change from central station dumb power plants There's no way around it. So So I want to put the renewable part in the context is that we have a 29.9 billion dollar proposed budget for DOE and all we are talking about is the very thing on the bottom is a 2.7 billion Dollar budget for the blended efficiency renewable So it's less than 10% of the budget when I come up here and talk to members and staff Somehow that's all forgotten. Well, this is the teeny part of the budget. It's the most dynamic as well The other issue I think that's good, and I'm not going to whine about it This is one of the first budgets. I've seen where they didn't try to throw a couple of technologies overboard I think the only other time I've seen it In what I call the modern context is the last year last term of the bush one Administration where they did the same thing Normally how both sides of the aisle do this so I'm not throwing any pointing any figures they decide Oh, we're going to show we're cost-cutting So we're going to create a fake a rationalization to why to throw some technology Overboard to show we're cost-cutting and in this case they didn't do it Again bush one did the same thing did followed a similar situation the last Their last two years, so this this is a this is a good thing. It's a smart way to deal with it When I started in this field in the 1970s There was about 300 million dollars worth of investment in renewables most of that in hydro and I you know, I am happy to tell you. This is the Bloomberg chart, but 2014 it was 310 billion dollars a private sector investment about over a trillion dollars in Government investment, so these are growing. It's not going to stop It's going to be a significant part of the market so the R&D that we were so worried about in the 70s and 80s as the aftermath of the oil embargo is Actually in the marketplace and the private sector is leveraging it just as the traditional energy sector is leveraging it This just came out of the international energy agency. I hate charts like this, but it was colorful And I sort of liked it for that reason, but if you look at the Second to the right that gray set of bubbles which is sort of the traditional energy stuff That's the where its cost is and you can see all these other technologies biomass Geothermal hydro actually below the bottom of those Traditional energy bubbles because their costs are getting better and I want to point out something not only they getting lower But you know, I hear this intermittency or variability stuff all the time well biomass Geothermal and hydropower and actually concentrated solar power all 24-hour power So the whole idea that renewables are variable is nonsense The three out of the five are not variable at all There is actually reliable we'll get to that capacity factors in a second and you can see wind parts of wind are obviously below those bubbles and Solar photovoltaics is moving to parody So the whole issue the whole point is we're oozing into competitiveness and that's good. That's what we want This just came out of the international Renewable energy agency which part of the United Nations Ireena and these are global jobs in these technologies 6.5 billion in 2013 Now the reason solar photovoltaics I get asked this question all the time have more jobs is Actually, they have less jobs per megawatt in Manufacturing this manufacturing is automated But you have to install this stuff, you know, so and it's distributed So you have a lot more on the on the delivery end Then you do with a lot of the more central station, but these blended industries You know solar photovoltaics the liquid biofuels wind power biomass electricity and thermal solar heating and cooling a biomass Geothermal small hydropower and concentrated solar power which is the desert stuff with the concentrators again with storage These are creating global jobs huge jump huge jump so That that's a good news and also in this country Solar foundation puts out its yearly census and so they just put out release theirs again I don't have it as a slide, but the solar industry United States produce actually has more jobs in the US coal industry So I wanted to sort of put you through just a little Retrospection I can do it because I'm as my daughter says ancient and I just want to say That this renewable energy efficiency stuff is thought of as Obama thing it couldn't be further from the truth And so I put since we're I'm in the US Senate now majority party is Republican I just went through and say and look through my files on the leading legislation on renewable energy and energy efficiency in the 70s 80s and 90s and these Are the lead senators who drove a lot of these bills So Carl Curtis in Nebraska for biofuels my old boss Jacob Javits You think he was a New York senator, but cheese and dairy big issue in New York a lot of waste products He did it because of water pollution because I thought to to intercept agricultural residue and turn it into fuels and electricity and Fertilizer makes a lot of economic sense and David Durenberger from Minnesota energy efficiency Chuck Percy at Illinois and in fact was the I think the first senator to To be the nonprofit head of the Alliance to save energy the honorary chairman Mark Hadfield of Oregon National Security Richard Luger from Indiana Jim Woolsey former CIA director not a senator, but Republican very very active today in this field Renewable energy John Chaffee Rhode Island Pete Domenici, New Mexico and So and then on tax credits Bill Roth from Delaware who was chairman of the tax committee Most of the tax stuff we have today in renewables and efficiency Came out of his brain and made sure it happened and then Bob Packwood Oregon the point being is this has been bipartisan for a long time and I want to point out that the Energy Policy Act of 75 and creation of 77 One and every omnibus energy bill right up to the present has been passed by huge majorities of both parties The idea that there is a black and white world between the parties on energy Actually really isn't true. It's more of a media thing than it is a reality thing Some couple of personal insights that I want to leave you today is that energy policy has always been driven in the modern context by a strategic focus on portfolio options in energy you never want to be stuck with one resource or one Technology I spent a lot of time in my courses focusing on risk. It's very depressing They learn about terrorism. They learn about water shortages. They learn about squirrels bring down the grid It's really depressing but the fact of the matter is what members of Congress have done and Virtually every of the last five modern presidents. They have been looking at portfolio theory You want to blend in fuels and electricity and heat and that's really what the game is That's what this budget's all about and has really been followed pretty much to a tee from Bush to Clinton Bush one Clinton Bush to and Obama Regarding risks We have a lot of risks and they have nothing to do And with each other in many cases. We have a terrorism risk. We have a cyber security risks that are real We have intense weather patterns. We have human error, which has brought down the grid more than any other thing We have geological events earthquake tsunamis obviously climate flooding forest fires So the issue is we need a resilient energy system in fuels and electricity and we need a resilient energy system that doesn't hemorrhage every time Something happens. I was hired by Governor Barber after Katrina and the Clinton Foundation New Orleans Also after Katrina because the infrastructure was ripped apart Well, we can't just you build up everything and assume everything is just you know keeping the same approach We need more resilient self-healing grids like the internet. So we need fuels and Systems that are closer to end users More in proximity to end users like cell towers are in communications We need more smarter grids as well as smarter on-site generation and we need Market and policy rewards for predictability Why I am hired by fortune 100 companies around the world to bring in efficiency renewables Blended into their corporate operations. I'm telling you it's not because of the beer. I am brought in because the technology blend that they want is their biggest concern is predictability Ability not lowest cost Lowest cost is great at the moment But then it flips if you've ever seen the cost charts, which I won't bore you with it goes up and down like this They want predictability. They want to know five years and ten years from now Their energy is pretty much flat so they can worry about other things. That's what this is all about so I just want to remind you that There are no dumb questions. What's wonderful about having graduate students is the only kind of Job that is legalized slavery in the United States, which means if you have any questions There are no dumb questions. I can get you research studies. I've already given you my 30 top reports list There is tons of security and reliability studies right now On all sorts and facets of energy. I am happy to share any of them with you as long as they're not I'm allowed to do it and So please feel free and not be shy because I'm just finding that we all have our own Biases and ideas But in fact when you start looking at the broad blend of both technologies and research and Analysis you'll get a much fairer picture of what the options are. Thank you very much Thanks, Scott, and I think once again, you know as we think about all three of our presentations and our speakers today is we think about the context of the issues you know as Fred was mentioning in terms of the the Framing issues and which you know which we saw in in Mike's presentation as as well It's very very clear how interconnected our world is in terms of all of the different sectors And while the world becomes it seems like more complex at the same time We are also seeing that it feels like there is this great race that is underway in this country and also globally as More and more of these technology issues are really really key to Economic and international economic competitiveness in terms of our whole economies and one of the things that I would also mention as we You know talk to people in terms of the the private sector in terms of other governments what we hear over and over again is that policy matters that the private sector Looks to government to help mitigate some of the risk because a lot of the R&D that they Are looking forward they would not undertake themselves and that therefore what we also see and what I have learned Over the years is that there are so many Partnerships between government and the private sector in terms of figuring out what makes sense in terms of R&D and and then where that goes So it's actually really really fascinating This is a great opportunity to really delve into these issues a little bit more and hear from from our specialists here So let's open it up for your up for your questions If you could identify yourself, please or comments. Okay, we'll go here first Hi Amy from the Cartwright office for those offices are getting ready for the appropriations process obviously every office is going to have their own priorities, but When we start getting pushback about Increases, I'm curious if ERE or DOE like has Kind of priorities or will have resources for knowing if there are certain programs that we should really be fighting for those increases Something along those lines Well certainly on a on a Program by program basis, you know, I would encourage offices to reach out to Derrick and and To talk about the particulars of each one of them. I think actually Scott summarized it pretty well there. There's actually two main objectives here and so one is is Maintaining an important level of support to to keep increasing the tool chest here the number of technologies that are available And so baseline support for technologies, even that might be a little bit longer term We think are actually really a key to keeping the pipeline going and developing these technologies on Those specific topic areas where you see the big increases in this year The reasoning really behind that is that the in you know, sort of technology by technology This is the opportunity to double down and to really leverage the competitive the globally competitive Opportunity in those in those technology spaces particularly, you know manufacturing I have to sort of say it again that we are in the midst of seeing on sourcing or on shoring of these of many of our manufacturing in this country and this is the opportunity to To really kind of carve out that space within the clean energy Technology race So I know that's not a direct but but we can definitely work with you on getting you specific answers If you if you need them as this as it comes up And Derek do you want to just stand up so that everybody knows Individually baseline there's specific follow-ups. Thank you. Okay. Okay. Great. Thanks other questions or comments Go ahead Question my regarding The EPA budget for the Clean Power Act and the 111d and to what extent can you share with us to how your programs your funding plays into because Energy efficiency is obviously going to be a huge portion of how states meet the clean power rules. How Does the how does the DOE budget kind of play into what EPA is doing on clean power? Okay, and so I Mean I again, I think I'd go back to what I was was just mentioning is We view our role within the applied programs at DOE as expanding that the tools available to solve these critical problems Efficiency the building technologies office, you know one specific aspect of it But even beyond that in the in the efficiency within the manufacturing sector I think we're bringing new tools to bear LEDs being one of the most obvious and most recent We're seeing incredible uptake in that and and that gives you a whole solution space to to meeting energy efficiency goals We have the same kind of Opportunities we think in the pretty near future and vapor, you know and getting away from vapor compression Air-conditioners and into the next generation of air-conditioners that are much more energy efficient just as an example so, you know the inner and and the interaction is Can be direct. I mean once we see what the opportunity space is We obviously share with all of our federal partners What what that is and then we then and they will begin to incorporate it into their models? at at the end of the day But it is, you know, it is basically about sort of building out the opportunities So that there's a lot of different compliance pathways a lot of different ways to achieve the goals and that they're not region-specific Or you know that there's so that everybody Across the country sort of has the opportunity to get where they where they want to get Okay, other questions Okay over here and why don't you just wait for the mic? Alex fields from the Center for American Progress, so In the budget seems like a big part across the theory is focusing on the grid modernization and the growth is smart grid and I was just wondering especially now that there's a lot of Renewable energy sources are becoming more cost-competitive the grid and approaching grid parity What are the sort of the best strategies for implementing them and gain them integrating to the grid as well as kind of developing? Solutions for demand response to ensure there's not overloads of the grid and that demand can be met Scott might also have an opinion on this I one one bid I would I would highlight is particularly in the recovery act but also in you know in other in other Places we we've begun a pretty substantial investment across the country in in in more intelligent grid And but it is not yet Interconnected and we have not yet Taken advantage of all the opportunities that that more intelligent does more intelligent systems Provide so you know our technology space. We're looking at what those opportunities are and trying to sort of think forward As as we have smarter Appliances we have smarter Solar inverters we have you know all of all the parts of our value chain that we're generating Will only have their value increased by by having being able to plug into a more intelligent More intelligent grid across across the board Those standards are still being worked out and you know and so it is a sort of a it's a lumpy investment environment We're gonna invest in some things that you know You may not realize that value for some number of years thereafter But we we do perceive that once you get to begin to integrate these things into a coherent system You're gonna have a much much higher value proposition than any of the technologies have alone. I I just like to add There are a couple of parallel paths you have to go One obviously is to make the grid smarter actually most utilities don't know they have outages until somebody actually calls them up one of their ratepayers so And it's a lot easier to reduce demand on a distribution line than run another line In fact, I get called a lot of them for my commercial industrial clients for energy efficiency because they have overloaded distribution lines and it's a lot faster and cheaper to just reduce the demand Then build new generation or run new lines so That's the good news and so we need a smarter grid and we need smarter and new Suppliances and we need to track it. We need diagnostics and all that But let us not say that that is a silver bullet. We also need what I call dumb generation And that means particularly for infrastructure things that really matter about 18 percent of our electricity And that means, you know, you don't you want to have if there's a major outage For whatever reason again terrorism earthquake forest fire no matter smart your grid is it's down That's some of the critical functions in society cell towers Pipeline pumps for fuels water and sewage hospitals things like that can run independently and Can run continually means you don't have to rush around helicopters with fossil fuels costing $400 a gallon and during sandy by the way We had for operating for hospitals shut down their operating rooms during operations and moving people around That's beyond it is the idiocy the diesel generators just didn't work or they couldn't get diesel to them So we need a smart grid. We need what I call dedicated Renewable energy generation. We need a lot more high value energy efficiency. It needs to be all in parallel You know, we got to look at this like a mutual fund Not a blue chip stock and to make sure that we have this resilient energy system And we need Congress and members of Congress and staff were sophisticated enough to understand that end game And not pick the flavor of the month Fred prompted me to make sure that I give my colleagues at the Office of Electricity within DOE there do as well so they you know, they work on the macro grid system and they are working on a lot of it of Intelligent technologies, but and and that is one of the reasons that we have instituted in recent years this cross-cutting grid tech team to make sure that we integrate our products You know that are coming out of our our research With an anticipation of how how that's going to interact with that larger grid landscape that OE is working on as well. And if I can just say one more thing as well, there's a lot of move now towards community Solar community win. There's a lot of move for micro grids meaning at a University campus or corporate campus or so an industrial park where you have an internalized grids Not always AC by the way, there's some very exciting work on also DC grids as well But the point being is we have a lot of options and we want to nurture those options we're going to learn a lot from them and so the whole point in this is as technology evolves Just as it has on your your cell phone that first was a dumb Cell phone and then became a cell phone and mp3 player and then became a cell phone and mp3 player and a web-enabled computer and then a gps and Camera and everything else. That's really what's going to happen here, too the same convergence of a lot of elegant blends of technology and So we want to foster an environment that allows that to happen and not just stick Sort of unilateral which we have an inclination to do great Obviously, there are lots of issues in the budget in the budget Document in terms of really looking at what the implications are what a lot of the different kinds of technologies are Why they are being put forward in terms of in conjunction with the overall priorities being espoused by the administration and And so I hope that you will all look at this much more carefully and please feel free to contact any of us with regard to questions or Derrick and We will also have all the presentations posted on our EESI website So please feel free to take advantage of that so that you can see the slides in large living color and Anyway, I want to thank you all for coming and just to let you know too that next Monday We will be holding a briefing the jobs the solar jobs issue came up We're going to be looking at that National Census in terms of looking at where these jobs are what kinds of jobs That will be next Monday, and then we will be also looking at the Buildings energy sector and some of the interesting wonderful success stories coming out of that And we'll also be taking a look at offshore wind So we have about 10 different briefings that are all kind of connected to Some of these areas that we've heard a little bit about today that will be coming up over the next Couple two or three months. So thank you all very much for coming really really appreciate all of you Represents a lot of time and work and we really really appreciate it. Thanks