Eye on Washington
At last…FY 2011 appropriations!
…The good, the bad, the ugly
It’s finally over: After months of deliberations and seven continuing resolutions, on April 14, Congress passed a final FY 2011 appropriations bill, signed the next day by President Obama. Opportunities for federal funding still exist to help America’s innovators commercialize a wide variety of clean technology and bring new products to the market.
The Good:
- ARPA-e receives its first appropriation through the annual Energy & Water bill—$180 million; but $120 million less than the Administration’s FY 2011 budget request.
- DOE’s Office of Science received $4.9 billion, $35 million below FY 2010 funding, and $252 million below the FY 2011 request.
- $20 million for energy security pilot projects at DOD facilities.
- $120 million for DOD’s Energy Conservation Investment Program.
- $246,000 for loans available through the Department of Commerce’s EDA (Economic Development Administration) – a 2% decrease.
The Bad:
- The Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy received $1.8 million, $438 million below FY 2010 funding and $550 million less than the FY 2011 request.
- USDA’s Rural Energy for America grant program received only $5 million, $34 million below FY 2010 funding and the FY 2011 request; however, an additional $36 million in mandatory Farm Bill funding will be available.
- NIST science and technical research and services cut $7 million below FY 2010 funding and $171 million below the FY 2011 request of $678 million.
- National Science Foundation research cut $43 million below FY 2010 funding, and $444 million below the FY 2011 request.
The Ugly:
- The final Continuing Resolution cuts NIST’s Technology Innovation Program to $45 million, $25 million below FY 2010 funding and $30 million below the FY 2011 request. Therefore, TIP will not be able to offer a funding opportunity during the remainder of FY 2011.
America COMPETES Reauthorization
In January 2011, President Obama signed the reauthorization of the 2007 America COMPETES Act. The law authorizes: doubling research budgets over 10 years for NSF, DOE Office of Science, and NIST core science and technology programs; and support for ARPA-E. The Commerce Department is directed to establish an Office of Innovation and Entrepreneurship to develop policies to accelerate innovation and R&D commercialization. The law establishes a loan guarantee program for small- and medium-sized manufacturers to support up to 80% of costs (up to $750,000) for projects that use or produce innovative technologies.
Department of Energy’s SunShot Initiative
The U.S. Department of Energy (DOE) has announced a solar manufacturing partnership entitled “SunShot” which is designed to boost American competitiveness in clean technologies that will lower the cost of renewable energy and create American jobs.
More than $110 million over five years will be dedicated to support the development of advanced solar photovoltaic manufacturing processes in the U.S. DOE’s Advanced Manufacturing Partnerships will assist the solar power industry in overcoming technical and financial barriers for PV installations while boosting the U.S. position in global leadership for solar technologies.
The facilities established through these projects will provide a wide range of support to PV companies and suppliers to assist them in developing new technologies with the goal of making the transition to commercial production. The program will also link universities and national labs with PV cell, materials, and equipment suppliers to help speed the rate of innovation. The selected industry-focused organizations will strongly leverage industry, state, and local funds.
U.S. Department of Agriculture Rural Energy for America Program
The U.S. Department of Agriculture (USDA) REAP Guaranteed Loan Program is designed to encourage commercial solar, wind and hydro power as well as energy efficiency projects. The Rural Energy for America Program (REAP) offers grants for up to $500,000 and loans up to
75% of the project’s cost ranging from $5,000 to $25 million.
Eligible feasibility studies for renewable energy systems include projects that will produce energy from wind, solar, biomass, geothermal, hydro power and hydrogen-based sources. The energy to be produced includes heat, electricity, or fuel. For all projects, the system must be located in a rural area, must be technically feasible, and must be owned by the applicant.
The deadline for applications is June 15.
Obama Proposes Flat R&D Spending in FY 2012 Budget Request
…But new initiatives and budget shifts preview significant funding opportunities
The Big Picture: President Obama unveiled his FY 2012 budget request, proposing $148 billion for Federal R&D, $722 million more than 2010 funding, a mere 1% increase. Basic and applied research would each increase by $3.4 billion for a total of $66 billion, while development would see a 2% cut. $67 billion is proposed for non-defense R&D (up $44 billion over FY 2010), and $81 billion for defense R&D. The non-defense R&D share would be 45% and defense 55%. R&D funding would be concentrated in three agencies; the Departments of Defense and Energy, and HHS/NIH would account for 76% of all Federal R&D funding.
| Agency | 2010 Actual |
2012 Proposed |
$ Change 2012-2010 | % Change 2012-2010 |
| Defense | 80,602 | 76,633 | -3,969 | -5% |
| HHS/NIH | 31,424 | 32,343 | 919 | 3% |
| Energy | 10,836 | 12,989 | 2,153 | 20% |
| NASA | 9,262 | 9,821 | 559 | 6% |
| NSF | 5,445 | 6,320 | 875 | 16% |
| USDA | 2,611 | 2,150 | -461 | -18% |
| Commerce/NIST | 1,344 | 1,720 | 376 | 28% |
| DOT | 1,069 | 1,215 | 146 | 14% |
| Homeland Security | 887 | 1,054 | 167 | 19% |
| Veterans Affairs | 1.162 | 1,018 | -144 | -12% |
| Interior | 776 | 727 | -49 | -6% |
| EPA | 590 | 579 | -11 | -2% |
| Education | 353 | 480 | 127 | 36% |
| Smithsonian | 213 | 212 | -1 | |
| Other | 565 | 650 | 65 | 15% |
| TOTAL | 147,139 | 147,911 | 772 | 1% |
Winners: Within a flat budget, the President proposed funding increases for priorities such as clean energy, energy efficiency, nanotechnology, advanced materials, and manufacturing. For example, funding for energy efficiency activities would more than double to $1.4 billion, and renewable energy R&D and deployment would increase by more than 70%. Several agencies would see substantial increases in their R&D budgets—Department of Energy (+20%), Commerce/NIST (+28%), and the Department of Education (+36%). NSF, DOE Office of Science, and NIST would continue on their multi-year doubling path.
Bottom Line: Despite an overall environment of fiscal restraint, the Administration’s budget proposal contains significant opportunities for U.S. small, medium, and large businesses in R&D and demonstration in renewable energy, nanotechnology, materials, and manufacturing.
However, the House Science, Space, and Technology Committee released its views and estimates of the President’s FY 2012 request. Expect support for a robust DOE Office of Science, but scrutiny of DOE’s plans to invest in infrastructure for electric vehicles, new energy innovation hubs, and utility scale energy storage. Surprisingly, there is some support for ARPA-E, but a desire for a “wait and see” flat budget. Concerns were noted about the size of the NSF budget in the current economic climate, and the agency’s increased investment in applied R&D. Taking a “wait and see” posture on NIST’s Technology Innovation Program. Wild card: gas prices.
Energy Research & Development, and Demonstration
…Obama seeks significant increases in clean energy R&D
Department of Energy (DOE) (in millions)
| Program/Subprogram | 2010 Actual | 2012 Proposed | % Change |
|
EERE |
2,216 | 3,200 | 44% |
| Hydrogen/Fuel Cells | 170 | 100 | -41% |
| Biomass/Biorefineries | 216 | 340 | 57% |
| Solar | 243 | 457 | 88% |
| Wind | 79 | 127 | 61% |
| Geothermal | 43 | 101 | 134% |
| Water Power | 49 | 38 | -22% |
| Vehicles Technologies | 304 | 588 | 93% |
| Building Technologies | 219 | 471 | 115% |
| Industrial Technologies | 94 | 319 | 239% |
|
ARPA-E |
550* | ||
|
Electricity Delivery/Energy Reliability |
168 | 238 | 42% |
|
Science |
4,963 | 5,416 | 9% |
| Basic Energy Science | 1,598 | 1,985 | 24% |
* Did not receive FY 2010 appropriations
- Winners: Obama Administration priorities—electric vehicles, clean electricity, clean fuels, and energy efficiency—would enjoy significant funding boosts: vehicle technologies (+93%), solar energy (+87%), wind energy (+60%), biomass and biorefineries (+57%), industrial technologies (+239%), and building technologies (115%). This includes funds for new or significantly expanded initiatives:
- Biopower ($22 million):New program on biomass for utility scale electricity.
- Solar PV (+$207 million): SunShot Initiative to achieve cost competitive solar electricity.
- Offshore Wind (+$64 million): More technology development and demonstrations.
- Vehicle Technologies: Electric vehicle battery readiness initiative and drivetrains (+91%), and deployment of electric vehicles and charging infrastructure (+615%).
- Next Generation Materials ($78 million): New program on materials for next-generation and clean energy manufacturing.
- New Energy Innovation Hubs: Smart Grid Technology and Systems Hub ($19 million), Critical Materials Hub ($20 million), and Batteries and Energy Storage Hub ($34 million).
- Next Generation Manufacturing Processes ($125 million): New R&D to provide energy-intensive industries with next generation manufacturing processes.
- Commercial Building Retrofit ($181 million): Energy efficiency.
- ARPA-E ($550 million): Potential funding opportunities for FY 2012:
– Stationary Power ($130 million): carbon-free power and carbon capture and storage
– Electrical Infrastructure ($80 million): transmission and distribution
– End-Use Efficiency ($105 million): buildings and appliances
– Embedded Efficiency ($60 million): industrial power generation and use, and water/agriculture
– transportation Systems ($115 million): fuels synthesis - Department of Agriculture (USDA)
USDA continues its support for biofuels and biomass R&D and demonstration:
- Biomass Research and Development Initiative: $40 million requested for FY 2012, a $12 million or 25% increase over FY 2010.
- Rural Energy for America Program (REAP): The President requested $34 million for REAP Grants, $14 million over FY 2010 appropriations; an additional $36 million in mandatory Farm Bill funding would bring the budget to a total $70 million for FY 2012. The President requested $11 million for REAP loans, a $133 million decrease from FY 2010; $130 million in mandatory Farm Bill funding would boost the loan budget to $141 million.
- Agriculture and Food Research Initiative (AFRI): The President requested $325 million, $63 million more than FY 2010. Within this program, funding supports development of regional systems for sustainabl production of bioenergy and bio-based products, and additional regional centers for biomass production.
- Rural Utilities Service: The President requested $6.1 billion in loan authority, of which $4 billion will be used for generation, transmission, and distribution of renewable energy.
Department of Defense (DOD)
DOD funding aims at meeting requirements to improve energy efficiency and energy security. Highlights include:
- Navy Energy Program: The President proposed $70 million for FY 2012, a 74% increase over FY 2010. The program focuses on energy conservation, mobility fuels, energy R&D, aircraft energy conservation, and projects to evaluate, adapt and demonstrate energy technologies for Navy use. Ocean energy is a new program focus.
- Energy Conservation Investment Program (ECIP): The President requested $135 million for ECIP, $34 million less than the FY 2010 enacted level.
- Strategic Environmental Research and Development Program (SERDP): Focused on environmental R&D, the President requested $66 million for SERDP, a $4 million increase over FY 2010, but $2 million less than the FY 2011 request.
- Environmental Security Technology Certification Program (ESTCP): ESTCP conducts environmental and clean energy technology demonstrations at DOD facilities and sites to collect cost and performance data. The President requested $63.3 million for FY 2012, a 57% increase over FY 2010 and 100% increase over the FY 2011 request.
- Energy Technology Demonstration and Validation Project: The President proposed $30 million in new funding for the Energy Technology Demonstration and Validation project, which oversees the Facility Energy Test Bed Initiative. The test bed program uses DOD infrastructure to test energy efficiency and renewable energy technologies in three areas: component technologies (i.e., HVAC, lighting, distributed energy generation); system approaches to building energy design, control, and management; and installation-level smart micro-grid technologies.
National Science Foundation
For FY 2012, the President proposed $576 million for clean energy research across NSF directorates (engineering, biology, chemistry, and physics). Areas of support include smart grid technologies, solar energy, biofuels and bioenergy, wind energy, and energy storage.
Manufacturing and Materials Research and Development
…R&D budget proposes strong support for manufacturing and materials
National Nanotechnology Initiative (NII)
The President requested $2.1 billion for the NII for FY 2012, an increase of $217 million over FY 2010 spending.
Significant investment is proposed for three signature initiatives: Nanoelectronics for 2020 and Beyond ($98.5 million), Sustainable Manufacturing ($84 million), and Nanotechnology for Solar Energy Collection and Conversion ($125.7 million).
The budget proposes $448 million for nanomaterials, a $90 million or 24% increase over FY 2010, and a substantial 44% increase for nanomanufacturing, from $84.8 million in FY 2010 to $122.5 million in FY 2012.
The President requested a 63% and 60% increase in NNI funding for DOE and NASA, respectively; of the proposed $237 million increase for DOE, $183 would go to ARPA-E for nanomaterials, nanoscale devices and systems, and nanomanufacturing.
National Nanotechnology Initiative FY 2012 President’s Budget Request
(in millions)
| NNI Participating Agency | FY 2010 | FY 2012 | Change | Percent |
| National Science Foundation | 429 | 456 | 27 | 6.29% |
| Defense | 440 | 368 | -72 | -16.36% |
| Energy | 374 | 611 | 237 | 63.37% |
| NASA | 20 | 32 | 12 | 60.00% |
| Commerce (NIST) | 115 | 116 | 1 | 0.87% |
| HHS – NIH / CDC / FDA | 473 | 496 | 23 | 4.86% |
| Agriculture | 20 | 17 | -3 | -15.00% |
| Environmental Protection Agency | 18 | 20 | 2 | 11.11% |
| Homeland Security | 22 | 10 | -12 | -54.55% |
| DOT – FHWA | 3 | 2 | -1 | -33.33% |
| All Other | 1 | 2 | 1 | 100.00% |
| Total Nanotechnology | 1,912 | 2,130 | 217 | 11.40% |
National Institute of Standards and Technology (NIST)
The President proposed $679 million for NIST Scientific and Technology Research and Services for FY 2012, which supports research and standards development in areas ranging from advanced manufacturing and cybersecurity, to Smart Grid devices and nanotechnology.
- Leading-edge Technologies: The President requested increases for cyber infrastructure (+$43 million), advanced materials (+$14 million), biomanufacturing (+$9 million), and nanotechnology-based products (+$28 million).
- Technology Innovation Program (TIP): The President’s proposed $74 million, a $5 million increase over FY 2010. New funding topics may include energy, advanced robotics, intelligent automation, healthcare, and water, while previously funded topics that may continue include civil infrastructure technologies and manufacturing. NIST may award 22 new TIP cooperative agreements.
- Innovations for 21st Century U.S. Manufacturing: Faster, Smarter and Cleaner: Slated to receive $13 million for developing measurement science, tools, and standards faster, more efficient, and sustainable manufacturing technologies, including robotics.
- Manufacturing Extension Partnership (MEP): The President requested an additional $17 million for the MEP to expand existing centers.
- Nanotechnology Measurement: The President proposed an increase of $28 million for a total of $42 million for four areas of nanotechnology: recapitalization of the Center for Nanoscale Science and Technology; environmental, health, and safety; high-volume nanomanufacturing with advanced materials; and measurements to enable manufacture of 3rd generation PV.
Department of Energy
DOE will continue to be a major player in materials and manufacturing:
- Next Generation Manufacturing Processes: The President requested $125 million ($74 million increase over FY 2010) for this EERE subprogram. New competitively selected projects will define concepts, conduct early-stage R&D, and develop prototypes. R&D will focus new production systems, including nanoscale manufacturing and processing.
- Materials: In addition to the new Energy Innovation Hub for Critical Materials ($20 million) and new program on Next Generation Materials ($78 million), the President requested $38 million for EERE’s Materials Technology Subprogram.
- Material Science: The President requested $460 million for materials science and engineering research in the Office of Science, a $107 million increase over FY 2010.
- Energy Bottom Line: Despite fiscal restraint and budget cuts, there are significant Federal funding opportunities in clean energy, with prospects for numerous awards ranging from a few hundred thousand to tens of millions of dollars. In its FY 2012 budget, DOE states its intent to issue numerous funding opportunity announcements in a variety of clean energy technologies.