DOE weighs deep cuts to clean energy programs
March 28, 2025
A liquid carbon dioxide containment unit stands outside Glenwood Mason Supply in New York. Carbon capture projects could be affected by the billions of dollars the Department of Energy is proposing to cut from its budget. John Minchillo/AP
The Department of Energy is considering cutting billions of dollars from its grid, renewable and clean energy demonstration offices, according to documents viewed by POLITICO’s E&E News.
The lists of potential cuts are circulating at the agency and on Capitol Hill. One document details eliminating a project in the grid office that would fortify the New England electricity system from extreme weather and grants that would expedite permitting for transmission in both blue and red states. Another document outlines cutting approximately 60 percent of industrial demonstrations in DOE’s Office of Clean Energy Demonstrations, including several large carbon capture and removal projects.
A third document, previously reported by POLITICO, outlines roughly $800 million in potential cuts from the Office of Energy Efficiency and Renewable Energy (EERE) that could affect electric vehicle, wind, battery, heat pump and net-zero building projects. One award recipient on that list confirmed Thursday that its project was canceled, although it’s unclear whether other proposals will be officially implemented.
In a statement, DOE spokesperson Ben Dietderich said the agency is conducting a review to ensure all its activities follow the law and align with the administration’s priorities.
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