State Energy Accountability Act

— 387 — Department of Energy and Related Commissions ENERGY INFORMATION ADMINISTRATION (EIA) Mission/Overview The U.S. Energy Information Administration “collects, analyzes, and dis- seminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and its inter- action with the economy and the environment.”70 Needed Reforms EIA is not an inherently problematic agency and historically has provided inde- pendent and impartial analysis. Requests for EIA analyses can be made by the Administration or from Members of Congress or congressional committees. EIA needs to be committed to providing unbiased forecasting and data so that poli- cymakers, industry, and the public can have a clear understanding of our energy resources and energy economy. Strong leadership will be needed to ensure that data and reporting are not misused to promote a politicized “energy transition.” New Policies l Clarify levelized cost of electricity. “Levelized cost of electricity (LCOE) refers to the estimated revenue required to build and operate a generator over a specified cost recovery period.”71 It is used in the National Energy Modeling System (NEMS) to compare the cost of technologies to determine which technologies are expected to be constructed in the future. Although it is useful in comparing the costs of resources over time, LCOE can also mask the massive amounts of capital needed to deploy new generation. Moreover, in the case of intermittent resources such as wind and solar, LCOE does not include the cost for backup or firming power from dispatchable resources. EIA should ensure that its reporting provides an accurate assessment of generation costs. The cost of backup power for when wind and solar resources are not available should be included when comparing the technologies and reported as a separate component in the modeling documents. l Revise reserve margins. EIA, in conjunction with FERC, NERC, regional transmission organizations (RTOs), and the electric industry, should change how electric grid reserve margins are defined and calculated. In the past, reserve margins have looked at the amount of nameplate capacity on the grid to serve peak load plus a reserve. With the increasing number of intermittent, nondispatchable resources like wind and solar, peak load and reserve margins need to be reevaluated. Reserve margins need to be timed to load changes throughout the day and consider the availability of dispatchable on-demand resources to meet load when renewables may not be available. — 388 — Mandate for Leadership: The Conservative Promise l Update reports on the impacts of federal financial interventions and subsidies. EIA’s most recent report on federal financial interventions and subsidies was issued in April 2018.72 This is an important analysis because it clearly shows the level of the federal government’s intervention in each area of the energy system for a given fiscal year. In the past, EIA performed the analysis pursuant to a request from Congress or the Administration. This report should become a project that is performed annually or every other year as part of EIA’s base program. l Ensure the objectivity of the International Energy Outlook (IEO). In the past, EIA published the IEO every year. It is now published every two years. IEO forecasts are important because the International Energy Agency’s forecasts in its annual World Energy Outlook are becoming unrealistic and politically oriented to push Europe’s climate goals. EIA forecasts should be based on current laws and regulations and should not be used to promote favored policies. l Assess the case for privatization. There are some who think that EIA should be privatized. The cost savings to taxpayers should be considered. On the other hand, EIA has generally demonstrated neutral data presentation that is helpful to policymakers and the private sector. Budget Congress appropriated $126.8 million for EIA in FY 2021, and the FY 2023 budget request is for approximately $144.5 million.73 OFFICE OF INTERNATIONAL AFFAIRS (IA) Mission/Overview “The Office of International Affairs has primary responsibility for addressing international energy issues that have a direct impact on research, development, utilization, supply, and conservation of energy affecting the United States.”74 It “focuses on enhancing global energy security through countering malign influence, diversifying supplies, and increasing energy access” and “is committed to increas- ing U.S. energy exports and trade to enhance growth.” 75 Needed Reforms l Expand IA’s role and focus its activities on U.S. international energy security interests. International energy activities should be consolidated under IA (and the Department of State’s Bureau of Energy Resources should be eliminated) to ensure a proper understanding of domestic energy

— 386 — Mandate for Leadership: The Conservative Promise energy. The Trump Administration took a less aggressive approach in Executive Order 13834, which specified that “each agency shall prioritize actions that reduce waste, cut costs, enhance the resilience of Federal infrastructure and operations, and enable more effective accomplishment of its mission.”64 New Policies A conservative Administration should follow the language of Executive Order 13834 and direct federal agencies to “reduce waste, cut costs, enhance the resilience of Federal infrastructure and operations, and enable more effective accomplish- ment of its mission.” For FEMP, this means focusing on helping federal agencies to follow the law and use energy efficiently and cost-effectively. Budget FEMP was funded at $40 million in FY 2022,65 and slightly less than $170 mil- lion is requested for FY 2023.66 If it is focused on helping the federal government to carry out its statutorily based energy goal, much less money is needed. CLEAN ENERGY CORPS Mission/Overview Under the IIJA, “the Clean Energy Corps is charged with investing more than $62 billion to deliver a more equitable clean energy future for the American peo- ple[.]”67 The Corps says that it will “focus on deploying next generation clean energy technology” to “help America meet its goals of a carbon-free power sector in 2035 and a decarbonized economy in 2050.”68 Needed Reforms The Clean Energy Corps is a taxpayer-funded program to create new govern- ment jobs for employees “who will work together to research, develop, demonstrate, and deploy solutions to climate change.” DOE anticipates recruiting “an additional 1,000 employees using a special hiring authority included in the Bipartisan Infra- structure Law.”69 Taxpayers should not have to fund a cadre of federal employees to promote a partisan political agenda. New Policies Eliminate the Clean Energy Corps by revoking funding and eliminating all posi- tions and personnel hired under the program. Budget Funding for Clean Energy Corps employees is not clearly defined in the FY 2023 DOE budget request. — 387 — Department of Energy and Related Commissions ENERGY INFORMATION ADMINISTRATION (EIA) Mission/Overview The U.S. Energy Information Administration “collects, analyzes, and dis- seminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and its inter- action with the economy and the environment.”70 Needed Reforms EIA is not an inherently problematic agency and historically has provided inde- pendent and impartial analysis. Requests for EIA analyses can be made by the Administration or from Members of Congress or congressional committees. EIA needs to be committed to providing unbiased forecasting and data so that poli- cymakers, industry, and the public can have a clear understanding of our energy resources and energy economy. Strong leadership will be needed to ensure that data and reporting are not misused to promote a politicized “energy transition.” New Policies l Clarify levelized cost of electricity. “Levelized cost of electricity (LCOE) refers to the estimated revenue required to build and operate a generator over a specified cost recovery period.”71 It is used in the National Energy Modeling System (NEMS) to compare the cost of technologies to determine which technologies are expected to be constructed in the future. Although it is useful in comparing the costs of resources over time, LCOE can also mask the massive amounts of capital needed to deploy new generation. Moreover, in the case of intermittent resources such as wind and solar, LCOE does not include the cost for backup or firming power from dispatchable resources. EIA should ensure that its reporting provides an accurate assessment of generation costs. The cost of backup power for when wind and solar resources are not available should be included when comparing the technologies and reported as a separate component in the modeling documents. l Revise reserve margins. EIA, in conjunction with FERC, NERC, regional transmission organizations (RTOs), and the electric industry, should change how electric grid reserve margins are defined and calculated. In the past, reserve margins have looked at the amount of nameplate capacity on the grid to serve peak load plus a reserve. With the increasing number of intermittent, nondispatchable resources like wind and solar, peak load and reserve margins need to be reevaluated. Reserve margins need to be timed to load changes throughout the day and consider the availability of dispatchable on-demand resources to meet load when renewables may not be available.

— 411 — Department of Energy and Related Commissions 19. President Donald J. Trump, Executive Order 13920, “Securing the United States Bulk-Power System,” May 1, 2020, in Federal Register, Vol. 85, No. 86 (May 4, 2020), pp. 26595–26599, https://www.govinfo.gov/content/ pkg/FR-2020-05-04/pdf/2020-09695.pdf (accessed February 13, 2023). 20. 18 U.S. Code § 824a(c), https://www.law.cornell.edu/uscode/text/16/824a (accessed February 27, 2023). 21. Report No. 117-98, Energy and Water Development and Related Agencies Appropriations Bill, 2022, Committee on Appropriations, U.S. House of Representatives, 117th Cong. 1st Sess., July 20, 2021, p. 6, https:// www.congress.gov/117/crpt/hrpt98/CRPT-117hrpt98.pdf (accessed February 13, 2023). 22. H.R. 3684, Infrastructure Investment and Jobs Act, Public Law No. 11-58, 117th Congress, November 15, 2021, Division J, Title III. 23. U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Budget in Brief, p. 7. 24. Timothy Gardner, “White House Asks Congress for $500 mln to Modernize Oil Reserve,” Reuters, November 16, 2022, https://www.reuters.com/article/usa-oil-spr-idAFL1N32C36I (accessed February 13, 2023). 25. U.S. Department of Energy, Office of Electricity, “Our History,” https://www.energy.gov/oe/about-us/our- history (accessed February 13, 2023). 26. Press release, “Secretary of Energy Signs Order to Mitigate Security Risks to the Nation’s Electric Grid,” U.S. Department of Energy, December 17, 2021, https://www.energy.gov/articles/secretary-energy-signs-order- mitigate-security-risks-nations-electric-grid (accessed February 13, 2023). 27. U.S. Department of Energy, Office of Electricity, “Revocation of Prohibition Order Securing Critical Defense Facilities,” Federal Register, Vol. 86, No. 76 (April 22, 2021), pp. 21308–21309, https://www.govinfo.gov/ content/pkg/FR-2021-04-22/pdf/2021-08483.pdf (accessed February 13, 2023). 28. U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Budget in Brief, pp. 19 and 61. 29. U.S. Department of Energy, Office of Nuclear Energy, “About Us,” https://www.energy.gov/ne/about-us (accessed February 13, 2023). 30. H.R. 3809, Nuclear Waste Policy Act of 1982, Public Law No. 97-425, 97th Congress, January 7, 1983, https:// www.congress.gov/97/statute/STATUTE-96/STATUTE-96-Pg2201.pdf (accessed February 24, 2023). 31. The Heritage Foundation, “Budget Blueprint for Fiscal Year 2023: Reduce the DOE Office of Nuclear Energy,” https://www.heritage.org/budget/pages/recommendations/1.270.127.html. 32. U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Budget in Brief, pp. 23 and 58. 33. 42 USC § 16291, https://www.law.cornell.edu/uscode/text/42/16291 (accessed February 27, 2023). 34. U.S. Department of Energy, Office of Fossil Energy and Carbon Management, “About Us: Mission,” https:// www.energy.gov/fecm/mission (accessed February 13, 2023). 35. U.S. Government Accountability Office, Carbon Capture and Storage: Actions Needed to Improve DOE Management of Demonstration Projects, GAO-22-105111, December2021, https://www.gao.gov/assets/gao-22- 105111.pdf (accessed February 13, 2023). 36. International Energy Agency, The Role of Critical Minerals in Clean Energy Transitions, World Energy Outlook Special Report, revised March 2022, https://iea.blob.core.windows.net/assets/ffd2a83b-8c30-4e9d-980a- 52b6d9a86fdc/TheRoleofCriticalMineralsinCleanEnergyTransitions.pdf (accessed February 13, 2023). 37. See 42 U.S. Code § 16291. 38. 42 U.S. Code Ch. 55, §§ 4321–4347, https://www.law.cornell.edu/uscode/text/42/chapter-55 (accessed February 27, 2023). 39. Nuclear Regulatory Commission, “Categorical Exclusions from Environmental Review,” Advance Notice of Proposed Rulemaking; Request for Comment, Federal Register, Vol. 86, No. 87 (May 7, 2021), pp. 24514–24516, https://www.govinfo.gov/content/pkg/FR-2021-05-07/pdf/2021-09675.pdf (accessed February 27, 2023), and Nuclear Regulatory Commission, “Categorical Exclusions from Environmental Review,” Advance Notice of Proposed Rulemaking; Reopening of Comment Period, Federal Register, Vol. 86, No. 160 (August 23, 2021), pp. 47032–47033, https://www.govinfo.gov/content/pkg/FR-2021-08-23/pdf/2021-18058.pdf (accessed February 27, 2023). 40. U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Budget in Brief, pp. 19, 21, 23, and 52. — 412 — Mandate for Leadership: The Conservative Promise 41. U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Budget in Brief, pp. 3, 6, 12, 19, 21, and 23. 42. S. 622, Energy Policy and Conservation Act, Public Law 94-163, 94th Congress, December 22, 1975, https:// www.congress.gov/94/statute/STATUTE-89/STATUTE-89-Pg871.pdf (accessed February 27, 2023). 43. H.R. 6, Energy Policy Act of 2005, Public Law No. 109-58, 109th Congress, August 8, 2005, https://www. congress.gov/109/plaws/publ58/PLAW-109publ58.pdf (accessed February 27, 2023). 44. U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, “About the Office of Energy Efficiency and Renewable Energy,” https://www.energy.gov/eere/about-office-energy-efficiency-and- renewable-energy (accessed February 28, 2023). 45. Ibid. 46. See note 41, supra. 47. U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Budget in Brief, pp. 19, 23, 43, and 49. 48. See U.S. Department of Energy, Grid Deployment Office, “About Us,” https://www.energy.gov/gdo/about-us (accessed February 13, 2023). 49. U.S. Department of Energy, Grid Deployment Office, “Building a Better Grid Initiative,” https://www.energy. gov/gdo/building-better-grid-initiative (accessed February 13, 2023). 50. U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Budget in Brief, pp. 2, 19, 21, 23, and 84. “The FY 2023 Budget Request to Congress proposes to split the Electricity appropriation account into two accounts: Electricity and Grid Deployment Office (GDO). Had the proposed FY 2023 structure been in place in FY 2021 and FY 2022, the $7,000,000 shown under the Electricity account’s Transmission Permitting and Technical Assistance (TPTA) program would have appeared under Grid Technical Assistance in GDO and the $3,000,000 shown under Program Direction in the Electricity account represents the estimated share of Electricity PD funding associated with TPTA and would have appeared under Program Direction in GDO.” Ibid., p. 84, note. 51. U.S. Department of Energy, Office of Clean Energy Demonstrations, “About Us: Our Mission,” https://www. energy.gov/oced/about-us (accessed February 13, 2023). 52. U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Budget in Brief, p. 6. 53. U.S. Department of Energy, Office of Clean Energy Demonstrations, “About Us: Our Story,” https://www. energy.gov/oced/about-us (accessed February 28, 2023). 54. U.S. Department of Energy, Office of Clean Energy Demonstrations, “OCED Project Portfolio,” https://www. energy.gov/oced/office-clean-energy-demonstrations (accessed February 28, 2023). 55. U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Volume 3, Cybersecurity, Energy Security, and Emergency Response, Federal Energy Management Program, Grid Deployment Office, Indian Energy Policy & Programs, Loan Programs, Manufacturing & Energy Supply Chains, Office of Clean Energy Demonstrations, Petroleum Reserves, Power Marketing Administrations, State and Community Energy Programs, April 2022, p. 104, https://www.energy. gov/sites/default/files/2022-09/doe-fy2023-budget-volume-3-v2.pdf (accessed February 13, 2023). 56. See, for example, ibid., pp. 104 and 107. 57. U.S. Department of Energy, Loan Program Office, “LPO Year in Review 2022: New Legislation,” January 5, 2023, https://www.energy.gov/lpo/articles/lpo-year-review-2022 (accessed February 28, 2023). Emphases in original. 58. H.R. 6256, To Ensure That Goods Made with Forced Labor in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China Do Not Enter the United States Market, and for Other Purposes, Public Law No. 117-78, 117th Congress, December 23, 2021, https://www.congress.gov/117/plaws/publ78/PLAW-117publ78.pdf (accessed February 28, 2023). 59. H.R. 2272, America COMPETES Act, Public Law 110–69, 110th Congress, August 9, 2007, § 5012, https://www. congress.gov/110/plaws/publ69/PLAW-110publ69.pdf (accessed February 13, 2023). 60. Ibid., § 5012(c)(1). 61. U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Budget in Brief, March 2022, p. 103.