January Government Affairs Updates
Federal Government Affairs
DOE Eliminates Clean Energy Office in Reorganization
On November 20, the Trump administration announced plans to reorganize the U.S. Department of Energy (DOE). The reorganization eliminates several offices that prioritized clean energy while creating new offices that align with the president’s agenda to restore American energy dominance through fossil fuels, nuclear energy, and securing critical minerals. Some highlights of the new structure include:
- Elimination of the Office of Energy Efficiency and Renewable Energy (EERE)
- Several programs under EERE, such as Office of State and Community Energy Programs and several renewable energy offices, will be moved to the new Office of Critical Minerals and Energy Innovation (CMEI)
- Assistant Secretary Audrey Robertson will oversee the CMEI
- Establishment of new offices dedicated to artificial intelligence (AI), hydrocarbons and geothermal energy, and quantum technologies
The new organization chart can be found here.
U.S. Congressional Activities
Senate Appropriators Introduce FY26 Funding
Bill for Energy Agencies
On November 24, the Senate Appropriations Committee released its fiscal year 2026 energy and water bill, one of 12 appropriations bills that Congress must pass each year to fund the federal government. The legislation, which does not acknowledge the Trump administration’s recent reorganization of the Department of Energy (DOE), would provide $57.5 billion in funding for the DOE, U.S. Army Corps of Engineers, Bureau of Reclamation, and other related independent agencies. This would be a $600 million reduction from fiscal year 2025 levels. The legislation would increase defense spending by 3% while cutting non-defense spending by 6.5%. Some highlights in the bill include:
- Reducing the Department of Energy’s budget by $600 million
- Decreasing funding for the Office of Energy Efficiency and Renewable Energy (EERE) by 5% from fiscal year 2025 levels to $3.3 billion
- Language requiring additional oversight and procedures for any grant terminations including:
- DOE must provide written notification to congressional appropriators and grant recipients of any grant terminations within 120 days before the termination date.
- DOE must provide recipients an opportunity to restructure or re-scope their grant to align with agency goals or priorities.
Members of the committee will likely seek a compromise before this legislation receives a full vote in the Senate, as it was introduced without the backing of committee Democrats. More information on the legislation can be found here.
