Renewable Energy and Energy Efficiency Incentives: A Summary of Federal Programs
Released: 2018-07-11T00:00:00

Introduction

The United States has an abundance of natural resources. For much of the nation's history, energy availability was not a concern as commerce and industry needs could be met by domestic supplies. However, industrialization and population growth, and the continuing development of a consumer-oriented society, led to growing dependence on foreign sources of energy during the 20 th century to supplement the demands of a growing economy.

Recognition of the implications of dependence on foreign sources of energy, coupled with concerns over the volatility of prices driven by fluctuations in supply spurred by world events, prompted federal efforts to increase U.S. energy independence and reduce domestic consumption. A major result has been the establishment of a number of programs focused on energy efficiency and conservation of domestic resources and on research programs that target the development of renewable sources of energy. Many of these programs have roots going back almost 40 years and have been redesigned many times over that period.

Many of the current programs have been reauthorized and redesigned periodically to meet changing economic conditions and national interests. The programs apply broadly to sectors ranging from industry to academia, and from state and local governments to rural communities. Each program has been designed to meet current needs as well as future anticipated challenges.

Since 2005, Congress has enacted several major energy laws: the Energy Policy Act of 2005 (EPACT 2005; P.L. 109-58 ); the Energy Independence and Security Act of 2007 (EISA; P.L. 110-140 ); the Energy Improvement and Extension Act (EIEA), enacted as Division B of the Emergency Economic Stabilization Act (EESA; P.L. 110-343 ); and the American Recovery and Reinvestment Act (ARRA; P.L. 111-5 ). Each of those laws established, expanded, or modified energy efficiency and renewable energy research, development, demonstration, and deployment (RDD&D) programs. The Department of Energy (DOE) operates the greatest number of efficiency and renewable energy incentive programs. The Department of the Treasury and the Department of Agriculture (USDA) operate several programs. A few programs can also be found among the Departments of the Interior (DOI), Labor (DOL), Housing and Urban Development (HUD), and Veterans Affairs (VA), and the Small Business Administration (SBA).

This report outlines current federal programs and provisions providing grants, loans, loan guarantees, and other direct or indirect incentives for energy efficiency, energy conservation, and renewable energy RDD&D. The programs are grouped by administering agency with references to applicable federal agency websites. Incentives are summarized and indexed in the appendixes.

Most program descriptions were compiled from authorizing statutes, the U.S. Code, and Administration budget request documents. Other program descriptions and some funding information were compiled from The Database of State Incentives for Renewables and Efficiency (DSIRE), the Assistance Listings (formerly the Catalog of Federal Domestic Assistance or CFDA) housed on the beta.SAM.gov website , and the Energy Star website. Most budgetary figures were compiled from executive agency budget justifications and congressional committee reports. For more information on agriculture-related grant programs, please see CRS Report R43416, Energy Provisions in the 2014 Farm Bill (P.L. 113-79): Status and Funding , by [author name scrubbed]. For more information on programs supporting the development and deployment of alternatives to conventional fuels and engines in transportation, please also see CRS Report R42566, Alternative Fuel and Advanced Vehicle Technology Incentives: A Summary of Federal Programs , by [author name scrubbed] et al.

I. Department of Energy Office of Energy Efficiency and Renewable Energy

Renewable Energy

Biomass

1. Bioenergy Technologies Program (formerly the Biomass and Biorefinery Systems R&D Program)

2. Regional Biomass Energy Grant Programs

3. Geothermal Technologies Program (GTP)

Hydrogen and Fuel Cells

4. Hydrogen & Fuel Cell Technologies Program

Solar

5. Solar Energy Technologies Program (SETP)

Water Power

6. Water Power Program (formerly Wind and Hydropower Technologies Program)

Wind Energy Program

7. Wind Energy Program (formerly Wind and Hydropower Technologies Program)

Energy Efficiency

Buildings

8. Building Technologies Program

9. Weatherization Assistance Program (WAP)

Industrial

10. Advanced Manufacturing Office (AMO, formerly the Industrial Technologies Program - ITP)

11. Inventions and Innovations Program

Vehicles

12. Vehicle Technologies Program

Other Energy Efficiency and Renewable Energy Programs

13. Conservation Research and Development Grants

14. Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training, and Technical Analysis/Assistance Grant Program

15. Renewable Energy Production Incentive (REPI)

16. Renewable Energy Research and Development Program

17. State Energy Program (SEP)

18. Tribal Energy Program (TEP)

Other DOE Offices/Cross-Cutting Programs

19. Advanced Research Projects Energy Financial Assistance Program (ARPA-E)

20. Electricity Delivery and Energy Reliability, Research, Development and Analysis Grant Program (Office of Electricity Delivery and Energy Reliability - OE)

21. Federal Energy Management Program (FEMP)

22. Financial Assistance Program (Office of Science)

23. Loan Guarantee Program (Office of the Chief Financial Officer)

24. Small Business Innovation Research Program (SBIR)/Small Business Technology Transfer Program (STTR)

II. U.S Department of the Treasury

Please note that tax credits for biofuels and vehicles are covered in detail another CRS Report R42566, Alternative Fuel and Advanced Vehicle Technology Incentives: A Summary of Federal Programs , by [author name scrubbed] et al.

Homeowner

1. Residential Energy Conservation Subsidy Exclusion (Corporate and Personal)

2. Residential Energy Efficiency Tax Credit

3. Residential Renewable Energy Tax Credit

Business and Industry

4. Business Energy Investment Tax Credit (ITC)

5. Energy Efficient Commercial Buildings Tax Deduction

6. Energy-Efficient New Homes Tax Credit for Home Builders

7. Renewable Electricity Production Tax Credit

State, Local, and Tribal Governments

Cross-Cutting

8. Modified Accelerated Cost-Recovery System (MACRS)

III. Department of Agriculture

1. Assistance to High Energy Cost Rural Communities Program

2. Bioenergy Program for Advanced Biofuels

3. Biomass Crop Assistance Program (BCAP)

4. Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program. (formerly the Biorefinery Assistance Program)

5. Community Wood Energy Program

6. Repowering Assistance Program (RAP)

7. Rural Energy For America Program (REAP) Grants and Loans

8. Sustainable Agriculture Research and Education Program (SARE)

IV. Department of the Interior

1. Energy and Mineral Development Program (EMDP): Minerals and Mining on Indian Lands

2. Tribal Energy Development Capacity Grant Program

V. Small Business Administration

1. 7(a) Loan Guarantees

2. 504 Loan Guarantees

VI. U.S. Department of Housing and Urban Development

1. Energy Efficient Mortgages (EEMs)

2. FHA PowerSaver Loan Program

VII. Department of Health and Human Services

1. Low Income Home Energy Assistance Program (LIHEAP)

VIII. Department of Veterans Affairs

1. Energy Efficient Mortgages (EEMs)

IX. Fannie Mae

1. Fannie Mae Green Initiative-Loan Program

Appendix A. Summary of Federal Renewable Energy and Energy Efficiency Incentives/Index of Programs

Appendix B. Index of Programs by Applicant Eligibility and Technology Type

Appendix C. Expired Federal Energy Efficiency and Renewable Energy Incentive Programs

1. Assisted Housing Stability and Energy and Green Retrofit Investments Program (Recovery Act Funded)

2. Clean Renewable Energy Bonds (CREBs)

3. Energy Efficiency and Conservation Block Grants Program (EECBG)

4. Energy Efficiency and Renewable Energy Technology Deployment, Demonstration, and Commercialization Grant Program

5. Energy Efficient Appliance Rebate Program (EEARP)

6. Energy Efficient Appliance Tax Credit for Manufacturers

7. New Era Rural Technology Competitive Grants Program

8. Program of Competitive Grants for Worker Training and Placement in High Growth and Emerging Industry Sectors

9. Qualified Energy Conservation Bonds

10 . Qualifying Advanced Energy Manufacturing Investment Tax Credit

11. Renewable Energy Grants (1603 Program)

Appendix D. Appendix D. Summary of Expired Federal Renewable Energy and Energy Efficiency Incentives/Index of Programs