WikiLeaks Document Release
                http://wikileaks.org/wiki/CRS-RS22858
                                               February 2, 2009



                        Congressional Research Service
                                       Report RS22858
 Renewable Energy R&D Funding History: A Comparison
with Funding for Nuclear Energy, Fossil Energy, and Energy
                     Efficiency R&D
                          Fred Sissine, Resources, Science, and Industry Division

                                                 April 9, 2008

Abstract. Energy research and development (R&D) intended to advance technology played an important
role in the successful outcome of World War II. In the post-war era, the federal government conducted R&D
on fossil fuel and nuclear energy sources to support peacetime economic growth. The energy crises of the
1970s spurred the government to broaden the focus to include renewable energy and energy efficiency. Over
the 30-year period from the Department of Energy's inception at the beginning of fiscal Year (FY) 1978
through FY2007, federal spending for renewable energy R&D amounted to about 16% of the energy R&D total,
compared with 15% for energy efficiency, 25% for fossil, and 41% for nuclear. For the 60-year period from 1948
through 2007, nearly 11% went to renewables, compared with 9% for efficiency, 25% for fossil, and 54% for nuclear.
                                                                                                                      Order Code RS22858
                                                                                                                              April 9, 2008




                                         Renewable Energy R&D Funding History: A
                                        Comparison with Funding for Nuclear Energy,
                                         Fossil Energy, and Energy Efficiency R&D
                                                                        Fred Sissine
                                                                  Specialist in Energy Policy
                                                           Resources, Science, and Industry Division
http://wikileaks.org/wiki/CRS-RS22858




                                        Summary

                                             Energy research and development (R&D) intended to advance technology played
                                        an important role in the successful outcome of World War II. In the post-war era, the
                                        federal government conducted R&D on fossil fuel and nuclear energy sources to support
                                        peacetime economic growth. The energy crises of the 1970s spurred the government to
                                        broaden the focus to include renewable energy and energy efficiency. Over the 30-year
                                        period from the Department of Energy's inception at the beginning of fiscal Year (FY)
                                        1978 through FY2007, federal spending for renewable energy R&D amounted to about
                                        16% of the energy R&D total, compared with 15% for energy efficiency, 25% for fossil,
                                        and 41% for nuclear. For the 60-year period from 1948 through 2007, nearly 11% went
                                        to renewables, compared with 9% for efficiency, 25% for fossil, and 54% for nuclear.


                                        Introduction
                                              This report provides a cumulative history of Department of Energy (DOE) funding
                                        for renewable energy compared with funding for the other energy technologies -- nuclear
                                        energy, fossil energy, and energy efficiency. Specifically, it provides a comparison that
                                        covers cumulative funding over the past 10 years (FY1998-FY2007), a second
                                        comparison that covers the 30-year period since DOE was established at the beginning of
                                        fiscal year 1978 (FY1978-FY2007), and a third comparison that covers a 60-year funding
                                        history (FY1948-FY2007).

                                        Guide to Tables and Charts
                                             Table 1 shows the cumulative funding totals in real terms for the past 10 years (first
                                        column), 30 years (second column), and 60 years (third column). Table 2 converts the
                                        data from Table 1 into relative shares of spending for each technology, expressed as a
                                        percentage of total spending for each period.
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                                             Figure 1 displays the data from the first column of Table 2 as a pie chart. That chart
                                        shows the relative shares of cumulative DOE spending for each technology over the 10
                                        years from FY1998 through FY2007. Figure 2 provides a similar chart for the period
                                        from FY1978 through FY2007. Figure 3 shows a chart for FY1948 through FY2007.

                                        Background
                                              The availability of energy -- especially gasoline and other liquid fuels -- played a
                                        critical role in World War II. Another energy-related factor was the application of
                                        research and development (R&D) to the atomic bomb and other military technologies.
                                        During the post World War II era, the federal government began to apply R&D to the
                                        peacetime development of energy sources to support economic growth. At that time, the
                                        primary R&D focus was on fossil fuels and new forms of energy derived from nuclear
                                        fission and nuclear fusion.

                                             From FY1948 through FY1977 the federal government provided an extensive
                                        amount of R&D support for fossil energy and nuclear power technologies.1 Total
http://wikileaks.org/wiki/CRS-RS22858




                                        spending on fossil energy technologies over that period amounted to about $15.4 billion,
                                        in constant FY2008 dollars. The federal government spent about $46.4 billion (in
                                        constant FY2008 dollars) during that period for nuclear fission and nuclear fusion energy
                                        R&D.2

                                              The energy crises of the 1970s spurred the federal government to expand its R&D
                                        programs to include renewable (wind, solar, biomass, geothermal, hydro) energy and
                                        energy efficiency technologies. Modest efforts to support renewable energy and energy
                                        efficiency began during the early 1970s. From FY1973 through FY1977 the federal
                                        government spent about $1.5 billion (in constant FY2008 dollars) on renewable energy
                                        R&D, $140 million on energy efficiency R&D, and $170 million on electric systems
                                        R&D.3

                                             The Department of Energy was established by law in 1977. All of the energy R&D
                                        programs -- fossil, nuclear, renewable, and energy efficiency -- were brought under its
                                        administration. DOE also undertook a small program in energy storage and electricity
                                        system R&D that supports the four main energy technology programs.4 DOE's funding
                                        support for those technologies began in FY1978. Funding for all four of the main
                                        technologies skyrocketed initially, and then fell dramatically in the early 1980s.




                                        1
                                          DOE. Pacific Northwest Laboratory. An Analysis of Federal Incentives Used to Stimulate
                                        Energy Production. 1980. The spending for fossil energy included coal, oil, and natural gas
                                        technologies.
                                        2
                                         DOE (Pacific Northwest Laboratory), An Analysis of Federal Incentives Used to Stimulate
                                        Energy Production, 1980.
                                        3
                                            DOE Conservation and Renewable Energy Base Table. February 1990.
                                        4
                                          This program includes R&D on advanced batteries to store electricity and transmission
                                        equipment to transfer electricity with less heat loss (i.e. at higher levels of energy efficiency).
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                                             Table 1. DOE Energy Technology Cumulative Funding Totals
                                                                            (billions of 2008 dollars)

                                                                                                     Period
                                               Technology             FY1998-FY2007            FY1978-FY2007            FY1948-FY2007
                                                                        (10 years)               (30 years)               (60 years)
                                         Renewable Energy                           $ 3.94                 $ 15.43                   $ 16.96
                                         Energy Efficiency                            6.02                    14.18                    14.32
                                         Fossil Energy                                5.36                    24.22                    39.60
                                         Nuclear Energy                               6.41                    38.62                    85.01
                                         Electric Systems                             0.93                     2.85                     3.02
                                         Total                                     $22.66                   $95.30                  $158.91
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                                        Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget
                                        Requests (several years); DOE (Pacific Northwest Laboratory), An Analysis of Federal Incentives Used to
                                        Stimulate Energy Production, 1980. Deflator Source: The Budget for Fiscal Year 2009. Historical Tables.
                                        Table 10.1. Gross Domestic Product and Deflators Used in the Historical Tables, 1940-2013. p. 194-195.



                                                    Table 2. DOE Energy Technology Share of Funding
                                                                        (percent; derived from Table 1)

                                                                                                     Period
                                               Technology             FY1998-FY2007            FY1978-FY2007            FY1948-FY2007
                                                                        (10 years)               (30 years)               (60 years)
                                         Renewable Energy                           17.4%                   16.2%                     10.7%
                                         Energy Efficiency                          26.6%                   14.9%                      9.0%
                                         Fossil Energy                              23.7%                   25.4%                     24.9%
                                         Nuclear Energy                             28.3%                   40.5%                     53.5%
                                         Electric Systems                            4.1%                     3.0%                     1.9%
                                         Total                                    100.0%                   100.0%                    100.0%

                                        Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget
                                        Requests (several years); DOE (Pacific Northwest Laboratory), An Analysis of Federal Incentives Used to
                                        Stimulate Energy Production, 1980; DOE Conservation and Renewable Energy Base Table. February 1990.
                                        Deflator Source: The Budget for Fiscal Year 2009. Historical Tables. Table 10.1. Gross Domestic Product
                                        and Deflators Used in the Historical Tables, 1940-2013. p. 194-195.
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                                                                 Figure 1.


                                             DOE Energy Technology Share of Funding, FY1998-
                                                                FY2007



                                                          4%
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                                                                  17%


                                             28%                                   Renewable Energy
                                                                                   Energy Efficiency
                                                                                   Fossil Energy
                                                                                   Nuclear Energy
                                                                          27%      Electric Systems



                                                    24%



Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget
Requests (several years); Deflator Source: The Budget for Fiscal Year 2009. Historical Tables. Table 10.1.
Gross Domestic Product and Deflators Used in the Historical Tables, 1940-2013. p. 194-195.
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                                                                 Figure 2.


                                             DOE Energy Technology Share of Funding, FY1978-
                                                                FY2007



                                                         3%
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                                                                  17%


                                                                                   Renewable Energy

                                             39%                                   Energy Efficiency
                                                                             15%   Fossil Energy
                                                                                   Nuclear Energy
                                                                                   Electric Systems



                                                                26%



Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget
Requests (several years); Deflator Source: The Budget for Fiscal Year 2009. Historical Tables. Table 10.1.
Gross Domestic Product and Deflators Used in the Historical Tables, 1940-2013. p. 194-195.
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                                                                 Figure 3.

                                             DOE Energy Technology Share of Funding, FY1948-
                                                                FY2007



                                                         2%     11%
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                                                                       9%
                                                                                     Renewable Energy
                                                                                     Energy Efficiency
                                                                                     Fossil Energy
                                             53%                                     Nuclear Energy
                                                                          25%        Electric Systems




Sources: DOE Budget Authority History Table by Appropriation, May 2007; DOE Congressional Budget Requests (several
years); DOE (Pacific Northwest Laboratory), An Analysis of Federal Incentives Used to Stimulate Energy Production,
1980; DOE Conservation and Renewable Energy Base Table. Feb. 1990. Deflator Source: The Budget for Fiscal Year
2009. Historical Tables. Table 10.1. p. 194-195.