Energy and Water Development: FY2018 Appropriations

Summary

The Energy and Water Development appropriations bill provides funding for civil works projects of the Army Corps of Engineers (Corps); the Department of the Interior’s Bureau of Reclamation (Reclamation) and Central Utah Project (CUP); the Department of Energy (DOE); the Nuclear Regulatory Commission (NRC); and several other independent agencies. DOE typically accounts for about 80% of the bill’s total funding.

President Trump submitted his FY2018 budget proposal to Congress on May 23, 2017. The budget requests for agencies included in the Energy and Water Development appropriations bill total $34.189 billion (including offsets)—$4.261 billion (11.1%) below the FY2017 level. The largest proposed increase would go toward DOE nuclear weapons activities, up by $994 million (10.7%). The House Appropriations Committee approved its version of the FY2018 Energy and Water Development appropriations bill with a manager’s amendment by voice vote on July 12, 2017, with total funding of $37.64 billion without scorekeeping adjustments—$809 million below FY2017 and $3.45 billion above the Administration request (H.R. 3266, H.Rept. 115-230). On July 18, 2017, the House Rules Committee released the amendment process for H.R. 3219, the Department of Defense Appropriations Act, 2018; amendments are to be drafted to a version of the bill that contains the language of four FY2018 appropriations bills including H.R. 3266. The Senate Appropriations Subcommittee on Energy and Water Development approved its version of the Energy and Water Development Appropriations bill by voice vote on July 18, 2017, with total funding of $38.4 billion.

Major Energy and Water Development funding issues for FY2018 include

Water Agency Funding Reductions. The Trump Administration requested reductions of 17.2% for the Corps and 14.3% for Reclamation for FY2018. Those cuts were largely rejected by the House Appropriations Committee and the Senate Appropriations Subcommittee.

Termination of Energy Efficiency Grants. DOE’s Weatherization Assistance Program and State Energy Program would be terminated under the FY2018 budget request. The House committee voted to continue those programs at the FY2017 funding level. The Senate subcommittee also voted to continue those programs.

Cuts in Energy R&D. Under the FY2018 budget request, appropriations for DOE research and development on energy efficiency and renewable energy (EERE), nuclear energy, and fossil energy would be cut by a total of 53.7%. The House panel approved most of the reductions in EERE R&D (54.4% from FY2017 enacted) but largely rejected the proposed nuclear and fossil energy reductions (4.7% and 5.0%, respectively). The Senate subcommittee largely rejected reductions in EERE approving funding at $153 million below FY2017 enacted level (7.3% reduction).

Nuclear Waste Repository. The Administration’s budget request would provide new funding for the first time since FY2010 for a proposed nuclear waste repository at Yucca Mountain, NV. DOE would receive $110 million to seek an NRC license for the repository, and NRC would receive $30 million to consider DOE’s application. DOE would receive $10 million to develop interim nuclear waste storage facilities. The House panel approved the request.

Elimination of Advanced Research Projects Agency—Energy (ARPA-E). The Trump Administration proposes to eliminate funds for new research projects by ARPA-E, and terminate the program after currently funded projects are completed. The ARPA-E termination was approved by the House committee. The Senate subcommittee rejected the termination and approved an increase in funding for ARPA-E above the FY2017 enacted level.

Plutonium Disposition Plant Termination. Construction of the Mixed-Oxide Fuel Fabrication Facility (MFFF), which would make fuel for nuclear reactors out of surplus weapons plutonium, would be terminated under the Trump Administration request. The Obama Administration had recommended termination since FY2015, but Congress has voted to continue construction. For FY2018, the House committee also voted to continue construction.