Dear Federal Affairs Committee,

Today, June 6, 2012, the U.S. House of Representatives (“House”) approved H.R. 5325, the Fiscal Year (“FY”) 2013 Energy and Water Development and Related Agencies Appropriations act by a 255-165 margin.  Among other things, the legislation funds the operations of the U.S. Department of Energy (“DOE”).

Funding Levels:

H.R. 5325, as approved by the House, provides $1.381 billion for the DOE’s Office of Energy Efficiency and Renewable Energy (“EERE”).  This is $428 million below the current year’s enacted funding level and $886 below the level requested in the Obama Administration’s FY 2013 budget request.  EERE houses DOE’s programs designed to promote solar energy.  Click here to review the committee report for H.R. 5325.      

Based on a number of concerns, notably funding levels provided for EERE in the House-passed bill, the administration signaled its intention to veto the legislation in its current form.  Click here to review the Obama Administration’s Statement of Administration Policy on H.R. 5325.

Amendments of Note:

The House considered H.R. 5325 under an open rule, which allows any Member of Congress to offer amendments to the bill.  Amendments of note include:

• Rep. Tom McClintock (R-CA) offered an amendment to eliminate all funding for EERE and direct the savings to deficit reduction.  The amendment was rejected by a 113-275 margin.
• Rep. Dennis Kucinich (D-OH) offered an amendment that would prohibit the use of funds for the 1703 DOE Loan Guarantee Program (“LGP”) and would further rescind $33 million of the $38 million provided in the bill to administer existing loan guarantees.  The amendment was rejected by a 136-282 margin.
• Rep. Marsha Blackburn (R-TN) offered an amendment to prohibit the use funds in the bill to fund the Section 1705 LGP.  The 1705 LGP has already expired, and the amendment was accepted by voice vote.
• Rep. Cliff Stearns (R-FL), the Chairman of the U.S. House Energy and Commerce Committee Subcommittee on Oversight and Investigations, the subcommittee that is conducting the Solyndra investigation, offered an amendment that prohibits DOE from subordinating any loan obligation to other financing.  This amendment was accepted by a 348-60 margin.
• Rep. Jim Jordan (R-OH) offered an amendment that prohibits the use of funds to issue or administer new loan guarantees for renewable energy systems, electric power transmission systems, or leading edge biofuels projects.  The amendment sponsor recently chaired a hearing in the House Oversight and Government Reform Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending that was highly critical of the DOE LGP.  The amendment was adopted by a voice vote.

Prospects Moving Forward:

On April 26, 2012, the U.S. Senate Committee on Appropriations approved its version of the FY 2013 Energy and Water Appropriations bill by a 28-1 margin.  This version of the bill provides $1.986 billion for EERE, which is $161 million above the levels appropriated for the current fiscal year.  The Senate bill, like the original House measure, provides $38 million to administer existing DOE loan guarantees.  Click here to review the committee report that accompanies the FY 2013 Energy and Water Appropriations bill as approved by the Senate Appropriations Committee.

The timing of full Senate consideration of the FY 2013 Energy and Water Appropriations bill remains uncertain.  Later in the legislative session, the House and Senate will have to reconcile the funding and policy differences between the respective House and Senate positions.  As this process moves forward SEIA will be working to:

• Preserve adequate funding for EERE and the administration of existing DOE loan guarantees, and
• Allow renewable energy projects to participate in the Section 1703 LGP in FY 2013.

Please do not hesitate to contact SEIA Federal Legislative Affairs if you have additional questions about this legislation.