Where Bush would steer energy R&D

Some critics question proposed federal spending hikes for nuclear research.

from the February 23, 2007 edition

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Resources devoted to climate change and energy security "are largely anemic," says Jason Grumet, executive director of the National Commission on Energy Policy, a group of energy experts that recommends doubling federal energy-research funding.

Energy Department officials disagree.

"This year's budget request supports the president's energy initiative to accelerate the deployment of renewable energy technology, such as biomass, hydrogen, and solar energy," says Megan Barnett, a DOE spokeswoman. The budget "builds on our commitment to strengthen global energy security by making investment to diversify our energy resources, expand our nation's scientific know-how, and continue to invest in energy that can reduce our carbon footprint," she says.

Is R&D government's job?

The overall decline in federal research dollars since the late 1970s is troubling to many, but not to everyone. Some argue that government is best left out of the energy research business because it's no good at picking winning technologies. The nation has received little in return for its massive investment in energy-technology research since 1978, these analysts say.

"If the utility industry wants clean coal, they can figure out themselves how to have cleaner coal," says Myron Ebell of the Competitive Enterprise Institute, a Washington think tank. "We don't think government-sponsored technology has a very good track record. Markets work better."

Others cite studies that indicate benefits to government involvement. A 2004 National Research Council (NRC) study calculated a historically good return on several categories of energy technology investment. Energy efficiency, for instance, showed a $30 billion return on investment of $7 billion – or $4 for every $1 invested in it since 1978, according to the report.

Innovations flowing from federal research include compact fluorescent light bulbs and refrigerators that use only one-third the electricity of earlier models. These and other gains have helped slash America's "energy intensity," the amount of energy spending per dollar of economic output, economists say.

Funding for energy-efficiency technology at DOE has seen a "substantial decline" during the Bush years, says Ms. Gallagher. Even renewable-energy funding has been only about flat, after inflation is considered, she says. She and others question whether funding for nuclear technology is robbing efficiency and renewable research budgets – and even funds for "clean" coal.

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