cient heating, lighting, refrigeration, industrial processes, and new multifuel propulsion engines or battery-driven automobiles. In the mid-1970s, several R&D laws1 were passed specifically directed at electric vehicles and multifuel automotive propulsion engines. The oil embargo also led to the passage of regulatory, information, and financial incentive laws in that decade, including laws on automotive corporate average fuel economy (CAFE) standards, appliance labeling, tax credits for energy-efficient retrofit improvements in residential buildings, low-income weatherization grants, retrofit grants for schools and hospitals, programs for retrofit activities, and building energy performance standards for new buildings.2 In 1987, Congress enacted the National Appliance Energy Conservation Act (P.L. 100–12), which provided for minimum efficiency standards for selected buildings equipment and appliances. The Energy Policy Act of 1992 (EPAct) (P.L. 102–486) provided additional authority and guidance for R&D programs on energy efficiency. For example, it provided a mandate for DOE to work with the largest users in the industrial sector to develop new energy-efficient technology. A review of the national energy plans of the 1970s and 1980s and the DOE strategic plans of the 1990s indicates that RD&D to improve energy efficiency was an integral part of energy strategy, although the emphasis and the focus changed as administrations changed.3

Table 3–1 shows DOE energy efficiency R&D budget data by year for FY 1978 to FY 2000 in constant 1999 dollars by sector. Figure 3–1 shows the allocation of funds by sector for FY 1978, FY 2000, and FY 1978 to 2000. As can be seen from the figure, the transportation sector always received the largest share of the budget (43 percent in 2000, cumulative 42 percent 1978 to 2000). In the early years (FY 1978) of the program, buildings received 40 percent of the funds and industry, 18 percent. In FY 2000, there was less of a difference, with buildings receiving 28 percent of the funds and industry, 29 percent. Over the total period for the programs, industry and buildings received about 26 and 32 percent of the funds, respectively. The focus of energy efficiency R&D shifted during the early 1980s to emphasize basic sciences and early technology development, resulting in less funding for technology and product development and (as seen in Table 3–1) a reduction in R&D dollars for energy-efficiency programs. In the 1990s, energy-efficiency R&D was broadened to include applied research, development, and demonstrations, which are in general limited to proof of concept.

TABLE 3–1 Summary of the Budget for DOE’s Energy Efficiency R&D Programs, FY 1978 to FY 2000 (thousands of constant 1999 dollars)

Sector

FY 1978

FY 1979

FY 1980

FY 1981

FY 1982

FY 1983

FY 1984

FY 1985

FY 1986

FY 1987

FY 1988

FY 1989

Buildings

129,659

157,644

178,755

152,024

74,798

59,594

54,674

57,809

49,932

39,389

40,725

40,725

Industry

61,553

74,861

105,816

115,872

45,269

42,251

29,657

44,688

54,233

45,811

40,302

37,832

Transportation

138,066

190,991

199,172

174,866

92,497

84,379

94,670

86,457

78,135

73,723

67,230

67,860

Total

329,278

423,496

483,743

442,762

212,564

186,224

199,001

188,954

182,300

158,923

152,466

146,417

Sector

FY 1990

FY 1991

FY 1992

FY 1993

FY 1994

FY 1995

FY 1996

FY 1997

FY 1998

FY 1999

FY 2000

FY 1978–2000

Buildings

43,230

57,449

53,986

57,928

87,631

121,468

91,500

102,516

100,027

120,039

139,416

2,015,127

Industry

61,222

70,326

110,938

123,813

134,486

141,960

113,027

118,501

138,196

165,859

175,200

2,071,673

Transportation

78,133

92,766

125,384

153,388

192,021

216,487

182,164

176,824

196,108

202,071

232,760

3,196,152

Total

182,585

220,541

290,308

335,129

414,138

479,915

386,691

397,841

434,331

487,969

547,376

7,282,952

NOTE: This includes only the R&D budget for energy efficiency. It does not include state and local grants, FEMP policy and management, or renewable technologies managed by the Assistant Secretary for EERE.

1  

For example, the Electric and Hybrid Vehicle Research, Development, and Demonstration Act of 1976 (P.L. 94–413) required the federal Energy Research and Development Administration to purchase several thousand electric or hybrid vehicles from 1978 to 1982, to demonstrate their feasibility.

2  

The Energy Policy and Conservation Act of 1975 (P.L. 94–163), established a wide range of energy conservation programs, including fuel-economy standards for passenger cars, appliance labeling and standards programs, and energy conservation programs for federal buildings. The Energy Conservation and Production Act of 1976 (P.L. 94–385) established energy conservation standards for new buildings; weatherization assistance for low-income people; and demonstration grants and loan guarantees for energy conservation measures in existing buildings. The National Energy Extension Service Act of 1977 authorized states to establish energy conservation extension programs. The National Energy Tax Act of 1978 (P.L. 95–618) established tax credits for residential conservation measures and solar energy applications. The National Energy Conservation Policy Act (P.L. 95–619) created a program of energy conservation grants for schools, hospitals, and local government buildings; required the national mortgage associations to purchase loans for conservation improvements; and authorized grants and standards for improving the energy efficiency of public housing (for further discussion, see Clinton et al., 1986).

3  

DOE, 1979; DOE, 1983; DOE, 1985; DOE, 1990; DOE, 1992; DOE, 1994; DOE, 1997; DOE, 1998; DOE, 2000a.



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