Domestic ORE Act

— 375 — Department of Energy and Related Commissions OFFICE OF NUCLEAR ENERGY (NE) Mission/Overview The Office of Nuclear Energy’s “mission is to advance nuclear energy science and technology to meet U.S. energy, environmental, and economic needs.” It has five stated goals: “Enable continued operation of existing U.S. nuclear reactors,” “Enable deployment of advanced nuclear reactors,” “Develop advanced nuclear fuel cycles,” “Maintain U.S. leadership in nuclear energy technology,” and “Enable a high-performing organization.”29 Under the Nuclear Waste Policy Act,30 the Office of Nuclear Energy “has also been responsible for the DOE’s statutory requirements to collect and dispose of spent nuclear fuel…since the Obama Administration’s dissolution of the Office of Civilian Radioactive Waste Management.”31 Needed Reforms NE is too influential in driving the business decisions of commercial nuclear energy firms. Instead of focusing on a limited set of basic research and devel- opment activities that solve foundational technical issues that apply broadly to energy production, NE intervenes in nearly all aspects of the commercial nuclear energy industry. Absent wholesale reforms that restructure the federal energy and science bureaucracy to eliminate such functional energy offices, the next Admin- istration should: l Substantially limit NE’s size and scope. l Adopt broader regulatory and energy policy reforms that reduce regulatory obstacles, allow all energy sources to compete fairly in the marketplace, and establish a predictable policy environment. This will avoid unfair bias against the nuclear industry. New Policies NE should transition to a more limited scope of responsibilities that focuses on basic research, solving broadly applicable technology challenges, and solving the nuclear waste management issue as it relates to the development and deployment of advanced next-generation reactors, which can include small modular reactors (SMR). While respecting existing contractual obligations, NE should not initi- ate any new civilian reactor demonstration and commercialization projects. NE also should: l Focus on overcoming technical barriers that are preventing commercial reactor demonstration projects from moving forward. Any activities in support of existing nuclear plants and any other projects — 376 — Mandate for Leadership: The Conservative Promise directed toward commercialization, including licensing support, should be shouldered by the private sector. l Reorganize its remaining activities into three basic lines of responsibility: nuclear fuels across the fuel cycle, reactor technology, and civilian radioactive waste. Budget The above reforms would cost substantially less than the $1,675,060,000 requested for FY 2023.32 Legislation such as the IIJA placed additional funding for new reactor demonstration projects outside of NE. These responsibilities and their associated funds should be moved to NE as appropriate. NE should not simply add or subtract programs, as some programs may help to support NE’s new priorities. The better approach would be to build a new budget and program strategy that accounts for related DOE programs and submit a new budget request reflecting NE’s new priorities. OFFICE OF FOSSIL ENERGY AND CARBON MANAGEMENT (FECM) Mission/Overview DOE is authorized by law to increase the conversion efficiency of all forms of fossil energy, reduce costs, improve environmental performance, and increase the energy security of the United States.33 In recent years, the Office of Fossil Energy (FE) has been transformed from its statutory role of improving fossil energy pro- duction to one that is focused primarily on reducing the carbon dioxide emissions from fossil fuel extraction, transport, and combustion. This change is reflected in the office’s new name, the Office of Fossil Energy and Carbon Management (FECM), effective as of July 2021, and FECM’s mission: “to minimize the environmental impacts of fossil fuels while working towards net-zero emissions.”34 Needed Reforms l Eliminate carbon capture utilization and storage (CCUS) programs. Despite the recent expansion of the 45Q tax credit for carbon capture utilization and storage (CCUS) to $87 per ton, most carbon capture technology remains economically unviable, although private-sector innovations are on the horizon. CCUS programs should be left to the private sector to develop.35 If the office continues any CCUS research, that research should be focused more on innovative utilization. l Pursue the processing of critical minerals. Development of domestic critical material sources is important for national security, as the vast

— 369 — Department of Energy and Related Commissions private sector for government-favored resources. The DOE Office of Clean Energy Demonstrations (OCED); Office of State and Community Energy Programs; ARPA-E; Office of Grid Deployment (OGD); and DOE Loan Program should be eliminated or reformed. If they continue to exist, FECM, NE, OE, and EERE should focus on fundamental science and technology issues, particularly in relation to cyber and physical threats to energy security, rather than subsidizing and commercializing energy resources. l Eliminate political and climate-change interference in DOE approvals of liquefied natural gas (LNG) exports. In addition, Congress should reform the Natural Gas Act8 to expand required approvals from merely nations with free trade agreements to all of our allies, such as NATO countries. l Focus the Federal Energy Management Program (FEMP) on ensuring that government buildings and operations have reliable and cost- effective energy. FEMP should stop using taxpayer dollars to force the purchase of more expensive and less reliable energy resources in the name of combating climate change. l Ensure that information provided by the U.S. Energy Information Agency (EIA), a data and statistical organization, is data-neutral. l Focus FERC on its statutory obligation to ensure access to reliable energy at just, reasonable, and nondiscriminatory rates. FERC is a five-member commission created under the DOE Organization Act that regulates the wholesale sales and transmission of electricity, promotes electric reliability through standards, permits natural gas pipelines and LNG export facilities, sets natural gas pipeline shipping rates, and sets oil pipeline shipping rates. It is an economic regulator and should not make itself a climate regulator. l Streamline the nuclear regulatory requirements and licensing process. Such changes would help to lower costs and accelerate the development and deployment of civilian nuclear, such as advanced nuclear reactors (including small modular nuclear reactors). The Nuclear Regulatory Commission (NRC) is commission tasked with the licensing of civilian nuclear reactors and power plants and regulating other uses of nuclear materials, such as nuclear medicine. Although it is not a DOE agency, its jurisdiction over nuclear reactor, fuel, safety, and trade issues often relates to or impinges on DOE’s jurisdiction. — 370 — Mandate for Leadership: The Conservative Promise l Focus on energy and science issues, not politicized social programs. The next Administration should stop using energy policy to advance politicized social agendas. Programs that sound innocuous, such as “energy justice,”9 Justice40,10 and DEI,11 can be transformed to promote politicized agendas. DOE should focus on providing all Americans with access to abundant, affordable, reliable, and secure energy, and DOE should manage its employees so that everyone is treated fairly based on his or her talent, skills, and hard work. New Policies: International Energy Security To help the President and policymakers understand and apply U.S. energy inter- ests in international affairs more effectively, various DOE programs offices need to be reformed. l Promote American energy interests. The next Administration should make U.S. energy dominance a key component of its foreign policy while ensuring that domestic and international goals are aligned. American energy dominance will allow the United States to secure energy for its citizens, markets for its energy exports, and access to new energy natural resources and will provide tools for U.S. policymakers to assist our allies and deter our adversaries. DESAS should analyze U.S. international energy security interests and develop a National Energy Security Strategy (NESS). This strategy would take account of the energy landscape across the globe to inform the President in his foreign policy and defense roles, but it should not be a tool for U.S. industrial policy, although it might highlight how current domestic industrial and climate policies threaten U.S. energy and national security. l Strengthen the role of the new Department of Energy Security and Advanced Science. There are frequent turf battles on energy issues between the Department of State and DOE. Although the State Department clearly has the policymaking authority under the DOE Organization Act, it tends to ignore the expertise and perspectives that DOE provides. The existing Assistant Secretary for International Affairs should provide the principal support for the DOE Secretary and Deputy Secretary on National Security Council (NSC) activities and should interface with colleagues at the Departments of Defense, State, Treasury, and Commerce, as well as the Intelligence Community (IC). New Policies: Advanced Science To ensure that America continues to lead the world in fundamental science, the National Labs should be refocused, and national science policy should be reviewed and coordinated.

— 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.