Energy and Water Development: FY2019 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 FY2019 budget proposal to Congress on February 12, 2018. The President’s budget requests for agencies included in the Energy and Water Development appropriations bill totaled $36.341 billion (excluding rescissions)—$6.871 billion (15.9%) below the FY2018 appropriation. A $375 million increase (3.5%) was proposed for DOE nuclear weapons activities. In contrast, the two versions of the FY2019 Energy and Water Development Appropriations bill passed by the House and Senate (Division A of H.R. 5895, H.Rept. 115-697, S.Rept. 115-258) would boost total appropriations above the FY2018 level. FY2018 Energy and Water Development funding was included in the Consolidated Appropriations Act, 2018 (P.L. 115-141), signed by the President on March 23, 2018.

Major Energy and Water Development funding issues for FY2019 include

Water Agency Funding Reductions. The Trump Administration requested reductions of 29.9% for the Corps and 26.5% for Reclamation for FY2019. Those cuts were largely not followed by the House and Senate.

Termination of Energy Efficiency Grants. DOE’s Weatherization Assistance Program and State Energy Program would be terminated under the FY2019 budget request. Congress did not eliminate the grants for FY2018 and the proposed cuts were not included in the FY2019 House and Senate bills.

Reductions in Energy Research and Development. Under the FY2019 budget request, DOE research and development appropriations would be reduced for energy efficiency and renewable energy (EERE) by 65.5%, nuclear energy by 37.2%, and fossil energy by 30.9%. The House and Senate bills largely did not include the proposed reductions. Energy R&D funding was increased 12.9% from its FY2017 level by the FY2018 Consolidated Appropriations Act.

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 $47.7 million to consider DOE’s application. DOE would also receive $10 million to develop interim nuclear waste storage facilities. The House bill would provide an additional $100 million to DOE for Yucca Mountain licensing above the request, while the Senate bill includes no Yucca Mountain funds. An Administration funding request for the Yucca Mountain project in FY2018 was not included in the FY2018 Consolidated Appropriations Act.

Elimination of Advanced Research Projects Agency—Energy (ARPA-E). The Trump Administration proposed to eliminate funds for new research projects by ARPA-E in FY2019, and called for terminating the program after currently funded projects were completed. The House approved an 8.0% cut and the Senate voted for a 6.1% increase. A similar proposal to terminate ARPA-E in FY2018 was not followed by Congress, with the FY2018 Consolidated Appropriations Act boosting funding for ARPA-E by 15.5%—to $353.3 million.

Low-Yield Warhead. DOE’s FY2019 budget documents proposed a low-yield version of the W76 LEP nuclear warhead. DOE’s initial FY2019 budget request did not request any funding specifically allocated to this modification, but the White House included $65 million for it in a budget amendment package submitted to Congress on April 13, 2018.

Plutonium Disposition Plant Termination. The Administration proposed in FY2018 and FY2019 to terminate construction of the Mixed-Oxide Fuel Fabrication Facility (MFFF), which would make fuel for nuclear reactors out of surplus weapons plutonium. The FY2018 Consolidated Appropriations Act conforms to provisions in the National Defense Authorization Act, 2018 (P.L. 115-91) that allow DOE to pursue an alternative plutonium disposal program if sufficient cost savings are projected. The FY2019 House bill includes a similar provision, while the Senate bill provides funding for termination. The Administration certified under P.L. 115-91 on May 10, 2018, that the cost-saving requirement for termination of MFFF would be met.