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U.S. DEPARTMENT OF ENERGYOFFICE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY

Office of Energy Efficiency and Renewable Energy

Strategic Plan

The Office of Energy Efficiency andRenewable Energy is…

Federal EnergyManagement

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PowerTechnologies

IndustrialTechnologies

Assistant Secretary

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Planning, Budget& Management

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Office of Energy Efficiencyand Renewable Energy

The Office of Energy Efficiency and RenewableEnergy (EERE) leads the nation in the research,development, and deployment (RD&D) of afford-able, advanced clean energy. Clean energydescribes energy-efficient technologies and prac-tices, which use less energy, and renewable energysources and natural gas, which produce power andheat more cleanly than conventional sources.

This leadership is provided by a Federal workforceof more than 500 individuals and is principallyorganized around five energy sectors—(1) build-ings, (2) industry, (3) transportation, (4) power gen-eration and delivery, and (5) Federal Governmentfacilities. EERE’s FY 2000 budget of $1.07 billioncomprises approximately 6 percent of the U.S.Department of Energy (DOE) budget.

EERE’s mission is advanced through a strong andbalanced RD&D portfolio of clean energy technolo-gies and practices, along with support for criticalpolicies and markets. EERE works with itsColorado field office, six regional offices, theNational Renewable Energy Laboratory, othernational laboratories, other Federal agencies, state

energy offices, industry, universities, nongovern-mental organizations (NGOs), and other stakeholdersto research and develop advanced energy technolo-gies and practices, and to facilitate their deployment.These activities will play a critical role in providingclean energy for the twenty-first century.

EERE’s mission is consistent with the FederalGovernment’s role of investing in high-risk, high-value RD&D that is both critical to the nation’sfuture and would not be independently conductedby the private sector.

EERE addresses the nation’s energy challenges intwo fundamental ways:

1. Increasing the efficiency of devices,processes, and systems that consume energy

2. Increasing the use of renewable energyand natural gas technologies and practices.

To learn more about EERE, visit our Web site atwww.eren.doe.gov, or see our Clean Energy for the21st Century brochure, which can be obtained bycalling (800) DOE-EREC.

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I am proud to present the Strategic Plan for the Department of Energy’s (DOE) Office of EnergyEfficiency and Renewable Energy (EERE). This Plan is important because it addresses the energy-related challenges and opportunities facing our country, and identifies the goals and strategies EEREwill pursue in the years ahead to address them.

As we begin a new decade—and a new millennium—it is useful to consider several energytrends that have emerged over the last decade and that will drive great change in the nextdecade: (1) Energy Security—Just 10 years ago, crude oil imports were 30 percent less thanthey are today and this increased reliance on foreign sources is placing ever greater stress on thenation’s security, as recent oil price spikes have demonstrated; (2) Economic Competitiveness—The end of the Cold War has helped unleash a global economy that is forecast to consumealmost twice as much electricity in 2020 as it does today, providing new challenges and oppor-tunities for U.S. energy technology exports and employment; (3) Climate Change—Over thelast 10 years, our confidence in the science of climate change has made greenhouse gas emis-sions an issue of concern for policymakers around the world, significantly changing our view ofthe role of energy efficiency and clean power in the country’s energy economy; (4) Clean Air—In the past decade, we have seen increased regulatory support for urban and rural areas to miti-gate their pollution problems by deploying energy efficiency and clean power technologies;(5) Electricity Industry Restructuring—The 1990s saw significant change in electricity regulato-ry policies, with wholesale competition occurring across the country and about half of the statesimplementing retail competition, providing significant new market opportunities for cleanenergy technologies, as well as new challenges.

In this changing environment, strategic planning is critical to ensure that EERE’s research, devel-opment, and deployment portfolio is adequately addressing the country’s clean energy needs. Inaddition to strengthening EERE’s traditional sector work, EERE’s strategic planning activities areleading to an increased emphasis on a number of cross-cutting initiatives that allow us to leverageour resources across multiple markets. These include, for example, cross-sector work in distributedpower, bioenergy, and energy management in schools.

In EERE, we understand that good corporate management practices are necessary to achieve pro-gram goals. This Strategic Plan is a key part of our Strategic Management System, which is anintegrated method of performing the corporate processes of planning, budgeting, procurement,program execution, evaluation, and analysis.

I view this document as part of a continuing dialogue with EERE’s stakeholders andcustomers on how best to provide clean energy for the twenty-first century, and I invite yourparticipation and insights.

Dan W. ReicherAssistant Secretary

Message from the Assistant Secretary

A key to the United States’ continued prosperitywill be the availability of clean, reliable, and rea-sonably priced energy. Trends suggest continueddomestic growth in energy use for the foreseeablefuture and accelerated energy use in many devel-oping countries.

This EERE Strategic Plan is a direct response tothese trends and is consistent with the frameworkof the DOE energy mission, which is to foster asecure and reliable energy system that is environ-mentally sustainable.

Many indicators in the United States and theworld suggest that a new, cleaner, and more effi-cient energy future is desirable and attainable inthe twenty-first century.

• Health and environmental quality con-tinue to rank high on surveys aboutAmericans’ greatest concerns; whengiven a choice, Americans prefer cleanenergy technologies.

• Commitments are emerging amongstate and local governments and indus-try to use energy efficiency and renew-able energy technologies to improveair quality.

• Clean energy technologies and practicesare helping a growing number of com-panies increase their profit margins andcompetitiveness.

• Scientific evidence continues to affirmthe link between greenhouse gas emis-sions and climate change.

• "Green power" and "green-pricing" pro-grams are appearing across the countryas the electricity sector transitions to acompetitive market.

• Industry, universities, and laboratoriescontinue to make significant advancesin reducing the price and increasing thereliability of clean energy technologies.

• Major fossil-fuel firms are investing inrenewable energy subsidiaries.

• Developing countries are increasinglyfocusing on clean energy as a way toachieve sustainable development.

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Office of Energy Efficiency and Renewable Energy________________________________________________________________

Challenges and Opportunitiesfor the 21st Century

The United States faces major energy-relat-ed challenges as it enters the twenty-firstcentury. Our economic well-being dependson reliable, affordable supplies of energy.Our environmental well-being—fromimproving urban air quality to abating therisk of global warming—requires a mix ofenergy sources that emits less carbon diox-ide and other pollutants than today’s mixdoes. Our national security requires securesupplies of oil or alternatives to it, as wellas prevention of nuclear proliferation. Andfor reasons of economy, environment, secu-rity, and stature as a world power alike, theUnited States must maintain its leadershipin the science and technology of energysupply and use.

Federal Energy Research and Developmentfor the Challenges of the Twenty-FirstCentury by the President’s Committee ofAdvisors on Science and Technology(PCAST), November 1997

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The EEREMission

The mission of the Office of Energy Efficiencyand Renewable Energy is:

To lead the nation in the research,development, and deployment ofadvanced energy efficiency andclean power technologies and prac-tices, providing Americans with astronger economy, healthier envi-ronment, and more secure future.

EERE’s mission is consistent with the FederalGovernment’s role of investing in technologiesand practices that are critical to the nation’s strate-gic interests, but that do not receive adequateresearch and development (R&D) investment fromthe private sector. EERE also works with stake-holders to develop policies and programs to facili-tate the deployment of advanced clean energytechnologies and practices.

This approach enables EERE programs to advanceAmerica’s energy systems by:

• Helping ensure adequate, affordablesupplies of clean energy

• Reducing U.S. vulnerability to energysupply disruptions

• Encouraging energy efficiency

• Advancing renewable energy andnatural gas technologies

• Increasing energy choices for allconsumers

• Reducing the environmental impact ofenergy use.

The EEREVision

The vision of the Office of Energy Efficiency andRenewable Energy is:

A world in which, due to EEREactions, advances in energy efficiencyand clean power technologies andpractices have significantly con-tributed to a stronger economy,healthier environment, and moresecure future.

Specifically, EERE envisions:• An America that uses a higher percentage of

domestic, clean energy supplies and tech-nologies, and is less dependent on interna-tional energy sources.

• An American economy that is thriving, inpart because of the contribution of bothenergy efficiency technologies and amplesupplies of domestic renewable and cleanenergy resources.

• The United States leading the way inreducing global greenhouse gas emissionsthrough the wide-scale use and deploy-ment of advanced energy technologies.

• Americans breathing cleaner air as pollu-tion levels decline due to advances inenergy efficiency technologies and cleanenergy systems.

• A competitive U.S. electric industry reli-ably transmitting and distributing low-cost,cleanly generated electricity through theuse of advanced energy technologies, and afully integrated spectrum of distributedpower systems.

• A United States that has reduced its pay-ments to other countries for imported fuelsand is a major exporter of clean energy tech-nologies that are recognized domesticallyand internationally as the best in the world.

EERE has set three major goals in pursuit of itsmission and vision:

1. Increase the supply and use of cleanenergy resources and increase the reli-ability of the energy system

2. Increase the efficiency of the energysystem

3. Continuously demonstrate EEREmanagerial and operational excel-lence.

Goal 1: Objectives and Benefits

• By 2010, triple domestic use of bio-based prod-ucts and bioenergy from 1999 levels, whichcould lead to the creation of as much as $20billion a year in new income for farmers andrural communities.

• By 2010, increase non-hydroelectricrenewable-energy-generating capacity to25,000 megawatts of installed capacity toprovide clean power for approximately 14million households, and maintain the cur-rent level of U.S. hydropower capacity bydeveloping hydro technologies that aremore "fish friendly."

• By 2010, increase the amount of the nation’sdistributed power to 20 percent of new elec-tricity capacity to mitigate transmission anddistribution constraints by increasing U.S. on-site power generation capability.

• By 2010, double the capacity of combined heatand power systems in the United States fromthe 1999 level to make use of thermal energynormally wasted in the generation of power.

• By 2005, increase the use of dedicated alterna-tive fuel vehicles from 400,000 operating in1998 to 1.5 million, thereby displacing at least130,000 barrels per day of petroleum.

• Maintain and enhance the reliability of thenation’s electricity transmission and distributionsystem as the United States transitions to acompetitive electricity industry.


• By 2010, reduce energy consumption in Federalfacilities by 35 percent relative to the 1985 con-sumption level, saving taxpayers $12 billionfrom 2000-2010.

• By 2010, increase the average fuel efficiency ofnew cars and light trucks by 20 percent relative tothe U.S. Environmental Protection Agency’s refer-ence fuel efficiency level for that year, saving 395million barrels of oil from 2000-2010 and reduc-ing carbon emissions by 33 million metric tons.

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EERE Goals

Goal 1Increase the Supply & Use of Clean Energy

Resources and Increase the Reliability of the

Energy System Goal 2Increase the Efficiency of

the Energy System

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• By 2010, increase the average fuel efficiency oflarge trucks by 7 percent relative to the 1998efficiency level, saving 180 million barrels of oilfrom 2000-2010 and reducing carbon emmis-sions by 20 million metric tons.

• By 2010, reduce industry energy consumptionper dollar of output 25 percent below its 1990level, increasing the competitiveness of U.S.industries by reducing cumulative industryenergy costs by more than $30 billion from2000-2010.

• Through 2010, improve the energy efficiencyof 25 percent of the new building stock by 50percent, and the energy efficiency of 15 percentof the existing building stock by 20 percent,saving over $65 billion in cumulative buildingenergy costs.

• By 2010, achieve $3 billion in annual exportsales of energy efficiency technologies, creat-ing about 100,000 jobs in the United States.


• Implement an integrated corporate system forprogram planning, budgeting, execution, andevaluation that is seamless and transparent.

• Base annual budget requests on sound pro-gram analysis and evaluations and formalpeer reviews to help ensure that EERE RD&D

programs are focused on national energyneeds and demonstrate technical excellence.

• Implement "best management practices" byensuring that EERE programs are perfor-mance-based, and that program progressresults are tracked and reported on amonthly basis.

• Improve employee development programs thattrain and reward employees, and build and retaina diverse workforce to increase employee excel-lence and satisfaction, and improve the deliveryof program benefits.

Goal 3Continuously Demonstrate

EERE Managerial andOperational Excellence

EERE RD&D programs are aligned with theenergy sectors of the economy to better link theadvanced energy technologies to their targetmarkets:

• Buildings

• Industry

• Transportation

• Power Generation and Delivery

• Federal Facilities.

EERE also recognizes the opportunity to link thefundamental and applied research advances thatsupport objectives in more than one sector; thus, itis placing greater emphasis on initiatives that cutacross multiple markets.

EERE advances its mission by addressing threeareas that ultimately determine whether clean ener-gy is deployed in the nation’s energy system—technology, policy, and markets. Although the bulkof EERE’s program activities are in the area oftechnology RD&D, government policies and mar-ket factors significantly affect which technologies

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EERE Strategies

Technology

CleanEnergy

Policy Markets

Examples of Cross-Cutting EERE InitiativesBioenergy Initiative—This initiative coordinates governmentefforts and partners with the private sector to develop an inte-grated bioenergy industry to produce power, fuels, and other bio-products from biomass. An Executive Order signed by PresidentClinton in August 1999 established a Cabinet-level Council onBioenergy, led by DOE and the U.S. Department of Agriculture.The President also established a goal of tripling the use of bio-energy and bio-based products by 2010.Distributed Energy Resources—Four initiatives—distributedenergy, combined heat and power, energy grid reliability, andpower outage prevention—will be consolidated into a singleEERE sector from the three sectors in which these activities arecurrently being carried out. The distributed energy and combinedheat and power work seeks to expand on-site distributed electri-cal and thermal power production. The energy grid reliability andpower outage prevention work is intended to enhance the relia-bility and security of the nation’s electricity and natural gasinfrastructure and to prevent power outages, including increaseduse of distributed power and more energy-efficient air-condition-ing systems.EnergySmart Schools—This initiative is a DOE-led partnershipthat brings together public- and private-sector resources toreduce energy bills in our nation’s schools and redirect the sav-ings to our children’s education. The initiative works to improvethe learning environment through smart energy improvementsand increases the energy awareness of students, teachers, andlocal communities.International Programs—EERE’s International Programs helpdeveloping countries leap-frog conventional approaches to ener-gy production and instead make the best use of clean energytechnologies. The program currently provides technical assis-tance to more than 60 countries, helping to build new marketsfor renewable energy and energy efficiency technologies whilecreating new sales opportunities for U.S. clean energy industries.Million Solar Roofs Initiative—Announced by President Clintonin June 1997, this presidential initiative, led by EERE, is support-ing the installation of one million solar energy systems on U.S.buildings by 2010. Working through more than 40 state and localpartnerships joined with the solar industry, utility serviceproviders, government agencies, and other organizations, theinitiative eliminates barriers to solar energy use and assists indeveloping market demand.Wind Powering America—This initiative establishes partner-ships between public and private organizations to encourage theincreased use of wind energy. This initiative has set a goal ofproviding 5 percent of the nation’s electricity from wind by2020, with the Federal Government setting the example byobtaining 5 percent of its electricity from wind energy by 2010.GeoPowering the West—This DOE initiative will link public-and private-sector efforts to bring geothermal electricity andgeothermal heat to widespread portions of the West. The short-term goal is to double the number of states with geothermal elec-tric power facilities to 8 by 2006. The long-term goal is to sup-ply at least 10 percent of the electricity needs of the West by2020 with 20,000 megawatts of geothermal energy capacity.

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are commercialized. Thus, EERE’s strategiesinclude the development of key policies at theFederal, state, and local levels, and the stimulationof critical end-use markets.

EERE is pursuing four principal strategies toachieve its three clean energy goals. They are:

• Improving energy technologies andpractices through R&D

• Facilitating the deployment of advancedenergy technologies and practices intotheir target markets

• Formulating policies and standards

• Implementing a corporate strategic man-agement system.

These strategies are described in the follow-ing sections, along with examples of accom-plishments.

Investing in Clean Energy R&D

Improvements in energy use and production tech-nologies and practices through R&D programswill provide the building blocks for a cleaner,more efficient, and diverse energy economy in thetwenty-first century. The imperative of investingin a strong R&D portfolio is now reinforced byrecognition of the long periods of time associatedwith significant change in our energy infrastruc-ture. Research and development itself often takesone or two decades to yield technological break-

throughs. The life expectancy of major energysupply and end-use technologies also extends tomany decades. Decisions made every day aboutenergy production and use commit the nation toan energy path for what can be a considerableperiod of time. To the extent that economicallyattractive, clean, and efficient technologies arechosen, both the economy and the environmentbenefit. Thus, a robust energy R&D program isneeded to enable the country to achieve a healthyand prosperous future.

Advances spawned through EERE’s R&D invest-ment will range from improvements seen directlyin our everyday lives—much more efficient light-bulbs, cars, appliances, motors—to new approach-es for large baseload energy sources and com-bined heat and power systems. In particular,EERE will invest in energy efficiency R&D thatprovides the technologies to enable the nation’sindustries and citizens to more cost effectivelymanage energy use in the buildings, industry,transportation, and government sectors. In addi-tion, EERE will invest in a balanced portfolio ofprograms designed to improve the performanceand reduce the costs of clean energy productiontechnologies, alternative fuels, and related storageand power delivery technologies.

EERE will continue to work closely with itsauthorizing and appropriating committees inCongress to assure that sufficient resources aremade available for investment in these technolo-gies and programs.

Implementing Field Verification Projects

While progress in the laboratory is critical to theeventual deployment of advanced clean energytechnologies, many of these technologies are seenas "high-risk" investments by commercial compa-nies and financial institutions because they havenot been proven in commercial settings. EERE ishelping to build confidence in advanced energytechnologies and practices by conducting inde-

Strategy 1Improve Energy

Technologies and Practicesthrough R&D

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pendent, unbiased field valuation projects thatmonitor their performance, cost, and reliability.The data collected from these field verificationactivities also provides important information thatis used by scientists and engineers in their R&Dactivities to bring about further advances in cleanenergy technologies.

Creating R&D Partnerships

EERE’s strategy includes creating R&D partner-ships among energy companies, energy-intensiveindustries, universities, and our national labora-tories to advance the development of new energytechnologies and practices. Such R&D alliances

EERE-funded researchers have won 25 R&D 100 Awardsfrom 1996 to 1999. The R&D 100 Awards are judged eachyear by a panel of 75 highly respected scientists and aregiven by R&D magazine for the most outstanding technolo-gy developments with commercial potential. Samples of the1999 EERE-funded R&D 100 Awards are provided below:

Clean Diesel Technology—New operating technology willenable diesel engines to operate more cleanly and efficient-ly. Oxygen is added to the engine’s air supply to enable itto burn diesel fuel more completely. The oxygen-rich air isproduced from ambient air using membranes that act as achemical filter. This technology reduces visible smoke andminimizes production of both particulate matter and nitro-gen oxides. (Argonne National Laboratory)

Frostless Heat Pump—The heat pump features a newdesign that greatly reduces, by a factor of 5, defrostingrequirements. Indoor thermal comfort is significantlyimproved because the average air supply temperature isincreased by 4°F and the heating capacity is increased21 percent at 33°F ambient temperature. (Oak RidgeNational Laboratory and Tennessee Valley Authority)

Mechanically Fluidized Vacuum (MFV) Reactor forBulk Powders—Using a combination of vacuum-furnaceand fluidized-bed technologies, the MFV reactor is thefirst powder furnace system to simultaneously control allpowder-processing parameters for operations used in theaircraft, automotive, and other industries. This improvesboth product quality and yield while reducing waste andpollution. By decoupling fluidation from gas flow, thereactor reduces gas consumption by as much as 3 ordersof magnitude. (W.E. Kemp, Kemp Development Corp.,and ACTON Materials Inc.)

Advanced Direct-Contact Condensers—This technologyincreases the efficiency and generating capacity in electricpower plants while reducing pollution by using sophisticat-ed geometric shapes to provide the best surface area forcondensing spent steam. Geothermal power plant operators

using the technology in California improved electricityproduction efficiency by 5 percent, increased potential gen-erating capacity by nearly 17 percent, and cut in half thecost of emissions treatment. (National Renewable EnergyLaboratory and Alstom Energy Systems, Inc.)

High-Efficiency Photovoltaic (PV) Modules—This tech-nology converts sunlight into electricity using copper indi-um diselenide-based solar cells. Tests have demonstratedefficiencies of more than 12 percent, by far the highest ofany commercial thin-film module. Thin-film PV moduleshave the potential of greatly reducing the cost of solar elec-tricity and providing a wide range of new products withmass appeal. (Siemens Solar Industries and NationalRenewable Energy Laboratory)

Rolling Assisted Biaxially Textured Substrates(RABiTS)—This technology could make it possible tomanufacture long lengths of ultra-high-performancesuperconducting wires that could significantly increasethe carrying capacity of the electricity grid. RABiTSsubstrates can be mass-produced at a cost of $0.10/cm2,compared to $15-$135/cm2 for traditional single crystals.Long lengths, flexibility, low cost, and single-crystal-likecurrent-carrying capabilities make RABiTS ideal forhigh-temperature ceramic superconductor wires, the mar-ket for which is expected to reach $100 billion by 2010.(Oak Ridge National Laboratory)

Submergible Robotic System—The robotic system,called Maverick, is the only robot certified to inspectaboveground storage tanks containing hazardous, poten-tially explosive fuel. The size of a suitcase, Maverick easilyfits through manways on top of the tanks, is self-righting,and moves on four traction wheels at walking speed.Maverick eliminates the need for hand-probe inspections,which traditionally disable tanks for four-week periods.The robotic inspection also costs three times less than amanual inspection while providing much more data.(Idaho National Engineering and Environmental Lab andSolex Robotics Systems, Inc.)

R&D Accomplishments

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help maximize the efficiency of the technologyR&D process by leveraging public and privateR&D resources, and bringing together interdisci-plinary teams of scientists, engineers, and ana-lysts to deliver technology results acceptable toenergy markets.

EERE works with its domestic and internationalpartners in both the planning and implementationphases of its R&D programs. In recent years,EERE has been making greater use of technology"visions" and "roadmaps" to develop shared goalsamong diverse groups within each sector and pro-vide a framework for cooperative technologydevelopment efforts and market transformationactivities. The roadmaps also serve to align gov-ernment R&D resources with the high-priorityneeds identified by stakeholders. For instance,recent EERE planning activities have suggestedthat changes in its portfolio mix are necessary toplace more emphasis on hybrid and distributedpower technologies.

Realizing the benefits of advanced technologiesrequires that they find their way into the mar-ketplace so they can be used by consumers.Market forces determine which technologiesmake this transition to the market; however,major informational, financial, institutional, andinfrastructure barriers must often be overcomein order for clean energy technologies tobecome a part of our overall energy system. Asa consequence, EERE’s strategy in this area isdesigned to address and mitigate the barriers,both domestic and international, to marketableproducts, as well as the barriers faced by the

Strategy 2Facilitate Deployment ofAdvanced Technologies

and Practices

Deployment AccomplishmentsSome of EERE’s accomplishments in the area ofdeployment are:

Building America—Building America partners areproducing homes that require far less energy. Onehundred Building America partners are producinghomes that require far less energy for heating andcooling than conventional practice at no additionalcost. These homes show how innovative buildingpractices can be cultivated by a consortium ofbuilders, contractors, and suppliers, in combinationwith DOE field support.

Industrial Assessment Centers—EERE’s IndustrialAssessment Centers are helping firms save millionsof dollars in energy costs. Working through 30 uni-versities, this deployment program has provided morethan 7,600 energy and industrial process audits as of1998 to small and mid-size manufacturing firms, gen-erating recommendations that could save participatingfirms $300 million through 2000.

Clean Cities—Government/industry partnershipsformed through the Clean Cities program havehelped deploy 139,000 alternatively fueled vehiclesover the last 5 years, reducing gasoline and dieselfuel use by an estimated 380 million gallonsthrough 1998 and reducing carbon emissions by anestimated 660,000 tons.

Federal Energy Management Program (FEMP)—This program is developing new ways to reduce ener-gy use in Federal Government facilities through theuse of innovative financing arrangements with theprivate sector that enable agencies to implement energy-savings projects at no first cost to the government andleverage hundreds of millions of dollars.

Climate Challenge Initiative—Partnerships withmore than 600 utilities under the Climate Challengeprogram have led to reductions of more than 40 mil-lion metric tons in utility carbon emissions.

Weatherization Assistance Program—This pro-gram is helping low-income families reduce theirenergy bills by implementing energy-savingmeasures. Since 1976, the WeatherizationAssistance Program has cut the utility bills of4.7 million households nationwide, allowing low-income families to use more of their hard-earneddollars for food, education, and other needs.

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end users of those products. EERE facilitates thedeployment of advanced energy technologies andpractices through a variety of mechanisms,which are discussed below.

Leveraging External OrganizationsThe market of energy users is broad and diverse,including hundreds of millions of residential, com-mercial, and transportation users, hundreds of thou-sands of industrial users, and millions of users in thepower sector. To enable deployment of advancedenergy technologies and practices, EERE works withthe leadership of high-leverage public and privateorganizations, such as states, universities, associa-tions, unions, technology companies, utilities, andcivic/community groups who have the direct con-stituencies, markets, and resources that can influenceenergy decisions. In addition, EERE will work withthe banking, insurance, and bonding industries thatdetermine where and how much capital is invested inthe energy economy to look for opportunities to part-ner on initiatives that advance our mutual interests.

Providing Financial Assistance

Adoption of advanced energy technologies isthwarted by consumer hesitancy to accept prod-ucts based on unproven new technologies, lowestfirst-cost procurement policies, tax disincentives,and a lack of credibility about professed benefits.To help overcome these barriers, Congress makesfunds available to EERE that are awarded tostates and communities in targeted grants to helpthem promote energy efficiency and the use ofclean power technologies. EERE has also estab-lished innovative energy efficiency financing pro-grams such as Energy Savings PerformanceContracts, in which private-sector companiesfinance and implement energy conservation proj-ects for Federal agencies.

Removing Institutional Barriers

Established business practices and regulations canact as barriers to the adoption of energy efficiency or

renewable energy technologies and practices, bothdomestically and internationally. EERE is workingwith public- and private-sector officials and foreigngovernments to identify and remove these barriers ingovernment procurement systems, design and con-struction practices, financing practices, insurancepractices, and in codes and standards.

In some cases, energy policies are in conflict withenvironmental and energy security goals, present-ing significant challenges to the market penetrationof clean energy technologies.

EERE works in close collaboration with other DOEoffices, the rest of the Federal Government, stateand local energy officials, Congress, industry, envi-ronmental organizations, energy consumer groups,and foreign governments to look for opportunitiesto mitigate the impact of regulatory barriers to thecommercial success of clean energy technologies.EERE also supports the formulation of policies toencourage the adoption of clean energy technologies.

EERE is directed by Congress to establish cost-effective energy efficiency standards that provide asubstantial increase in the average energy perfor-mance of buildings and energy-related equipment.With the involvement of stakeholders, EEREexpects to maximize the benefits and minimize theburdens of utilizing new, cost-effective, and environ-mentally friendly technologies through the targeteduse of efficiency standards.

EERE is currently involved with policy and stan-dard-setting efforts to:

• Increase the energy efficiency of appliances

Strategy 3Formulate Energy

Policies and Standards

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• Increase use of biodiesel fuel in fleets

• Support the use of efficiency and renewables inthe evolving, restructured electricity sector

• Include energy efficiency and renew-able energytechnologies as options in State ImplementationPlans, under the Clean Air Act

• Reduce mobile-source emissions (with the U.S.Environmental Protection Agency and the trans-portation industries)

• Assist states and local governments with moreadvanced, energy-efficient building codes.

EERE policy and regulatory accomplishments include:

Refrigerator energy efficiency standard adopted in1997—A refrigerator energy efficiency standard wasadopted in 1997 that will require all refrigerators andfreezers manufactured or imported in the United Statesafter July 1, 2001, to be 30 percent more efficient thanthe pre-standard baseline.

Room air conditioner energy efficiency standard set in1997—EERE amended the existing energy conservationstandards for room air conditioners in 1997. EERE projectsthe standards will save 0.64 quads of energy through 2030,which is likely to result in a cumulative reduction of emis-sions of approximately 54 million tons of carbon dioxide.

Ballast energy efficiency standard agreement reachedin 1999—An agreement was reached between DOE,lamp-ballast manufacturers, and energy efficiency advo-cates to improve the energy efficiency of fluorescentlighting in commercial and industrial applications.Adoption of the efficiency standard is expected to savebetween 2 and 5 quads of energy over a 30-year period,or enough energy to supply 12 to 26 million homes inthe United States for 1 year.

Federal renewables portfolio standard proposed by theClinton Administration—EERE worked with the WhiteHouse to draft a Federal Renewables Portfolio Standardprovision for the Administration’s ComprehensiveElectricity Competition Plan to ensure that renewablesaccount for at least 7.5 percent of the electricity generatedin the United States by 2010.

EERE working to remove barriers to the deploymentof combined heat and power (CHP) technologies—EERE is working to remove barriers to the penetration ofcombined heat and power technologies by including CHP-friendly strategies in Federal restructuring legislation,

supporting tax credits and changes to depreciation as eco-nomic incentives to CHP, educating state officials aboutthings they can do to encourage CHP, and increasingawareness about the benefits of CHP and the barriers lim-iting its increased implementation.

Regulatory definition of "alternative fuel" expanded—EERE has published a final rule to add another new substi-tute for gasoline, called the "P-series fuels," to the regulato-ry definition of "alternative fuel." P-series fuels aredesigned to operate in flexible-fuel vehicles that can run onE85 (85 percent ethanol mixed with 15 percent gasoline),or gasoline, or any blend of the two.

Executive Order to develop and promote bio-basedproducts and bioenergy—President Clinton recentlyannounced a bioenergy initiative, to be led by EERE, thatwill develop a comprehensive national strategy, includingresearch, development, and private-sector incentives, tostimulate the creation and early adoption of technologiesneeded to make bio-based products and bioenergy tech-nologies cost competitive in large national and internation-al markets. Bio-based products and bioenergy technologiescan create new markets for farm and forest waste products,new economic opportunities for underused land, and newvalue-added business opportunities.

Executive Order to "green the government" throughefficient energy management—President Clinton recent-ly issued Executive Order 13123 to significantly improvethe Federal Government’s energy management throughcost-effective life-cycle measures that strive to reduceenergy consumption and expand the use of renewableenergy. This Order is designed to save taxpayer dollarsand reduce emissions that contribute to air pollution andglobal climate change. EERE’s Federal EnergyManagement Program (FEMP) is responsible for workingwith the agencies to ensure that they meet the goals ofthis order and report their progress.

Policy and Standards Accomplishments

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Based on the complexity of our nation’s energymarkets, the range of energy technology optionsthat could be pursued, and the need to investFederal resources wisely, it is essential that theEERE programs be carried out with superior cor-porate management and business acumen. Ourprograms must be properly planned, funded, andexecuted to meet the nation’s needs in the areas ofenergy efficiency and clean energy production. Inaddition, EERE must demonstrate the proper ana-lytical underpinning to justify the pursuit of ourindividual and integrated RD&D programs, whilecontinuing to focus on our collective technologyadvancement goals.

Excellence in business management is essential toaccomplishing the EERE mission and goals. Thegovernment cycles often involve the managementof up to four budget years at any one time. To dothis in the most effective manner, an orderly, sys-tematic approach is needed that is transparent, inte-grated, and seamless as it relates to the business ofplanning, budget formulation, budget execution andprogram analysis and evaluation.

A key approach in EERE has been the creationof the Strategic Management System (see figurebelow for more details). This system takes thesecomplex processes of Federal management andlinks them into a cohesive whole based on com-mon terms and definitions, and applies them witha consistent set of principles, procedures, andinformation management systems. This integrat-ed, systematic approach to management envi-sions a deliberate and proactive approach to thebusiness of EERE. Implementing this system isthe key to ensuring overall management excel-

lence on a par with the technological excellenceof the EERE programs. In support of theStrategic Management System, there are a num-ber of related and supportive strategies thatEERE is pursuing, including:

• Institutionalizing a systematic program analysisand evaluation activity, using peer reviews andindependent analyses to aid decision making

• Implementing an integrated baseline manage-ment system that tracks programmatic executionacross all of EERE

Strategy 4Implement a CorporateStrategic Management

System

Corporate ManagementAccomplishments

Some of EERE’s recent corporate managementaccomplishments include:

Laboratory management contracts competed at theNational Renewable Energy Laboratory and OakRidge National Laboratory—The contract to managethe National Renewable Energy Laboratory (NREL)was competed by EERE in 1998—the first time in 15years—and awarded to the Midwest Research Institute-Battelle-Bechtel Team. EERE also assisted with thecompetition of the Oak Ridge National Laboratorymanagement contract, which was awarded to theUniversity of Tennessee, Battelle LLC in 1999.

Larger percentage of Discretionary FinancialAssistance awarded on a competitive basis—Theproportion of EERE Discretionary FinancialAssistance (DFA) funding awarded on a competitivebasis increased from 24 percent of DFA funding in FY1996 to 86 percent in FY 1999.

Merit-review practices and procedures strength-ened—EERE has strengthened its merit-review prac-tices and procedures through increased guidance andtraining of its staff.

Office of Planning, Budget, and Managementestablished within EERE—In 1999, EERE estab-lished a Chief Operating Officer to direct the newOffice of Planning, Budget, and Management thatoversees all corporate EERE planning, budget, andmanagement activities.

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______________________________________________________________________________________________ Strategic Plan

• Institutionalizing a corporate approach to fieldmanagement that clearly delineates and definesthe roles, responsibilities, and authorities amongall participants in the EERE system

• Continuing to seek cross-cutting opportunitiesthat leverage EERE technical capabilities andresources across program organizations

• Consistently communicating with customersand stakeholders to increase understanding andacceptance of EERE technologies and policies.EERE is organizing its communications andoutreach programs around the Clean Energy forthe 21st Century theme to deliver a single com-pelling message about the goals and outcomesof EERE’s programs. EERE is investing timeand resources in "clean energy" informationdevelopment and dissemination activities tosupport this effort, including publications, Web-

based outreach, speeches, conference participa-tion, and other outreach activities.

• Institutionalizing EERE’s core values:

- Be customer-oriented

- Value public safety and respect for the environment

- Demonstrate that people are EERE’s mostimportant resource

- Value creativity and innovation

- Be committed to excellence

- Work as a team and advocate teamwork

- Recognize that leadership, empowerment, andaccountability are essential

- Pursue the highest standards of ethical behavior.

PlanningEERE Strategic PlanEERE Fall 5-Year Planning GuidanceEERE R&D Technology PortfoliosDOE Annual Performance Plan

Program Analysis & EvaluationEERE Monthly Management ReviewsQuarterly Performance Status ReportsProgram EvaluationPeer ReviewDOE Annual Accountability Report

Budget ExecutionEERE Annual Operating PlanEERE Program Guidance Letters & Procurement RequestsEERE-Approved Funding ProgramEERE Performance Contracts, Grants, Agreements

Budget FormulationEERE Spring Budget SummitCFO Corporate Review BudgetOMB Budget RequestCongressional Budget RequestEERE Procurement Plan

Goals

Appropriations

Results

PortfolioInformation

CustomersSecretary

FieldEmployees

Contractors/GranteesPrivate Sector

Federal/State/Local GovernmentsInternational

OMB/CongressNGOsPublic

EERE Strategic Management System

FurtherInformation

The newly implemented EERE StrategicManagement System envisions that strategicplanning will lay the foundation for our pro-grams and decision-making. However, thisStrategic Plan is a living document and will berevisited annually for new insights andapproaches. We welcome the views and sugges-tions of the many people and organizations whohave a stake and interest in our programs. Pleasesend comments to the following address:

Office of Energy Efficiency and

Renewable Energy

U.S. Department of Energy

Washington, DC 20585-0121

To obtain print copies of this document or anyDOE/EERE publications, contact:

Energy Efficiency and Renewable EnergyClearinghouse (EREC)P.O. Box 3048Merrifield, VA 22116Fax: (703) 893-0400BBS: (800) 273-2955Phone: (800) DOE-EREC(800-363-3732)E-mail: [email protected]

EREC can also answer questions concerning cleanenergy technologies.

U.S. Department of Energy1000 Independence Avenue, SWWashington, DC 20585-0121

National Renewable Energy Laboratorya DOE national laboratory

DOE/GO-102000-0956March 2000

Printed with renewable-source ink on paper containing at least 50% wastepaper, including 20% postconsumer waste

Visit Our Web Sites

• U.S. Department of Energywww.doe.gov

• Energy Efficiency and Renewable Energy Network (EREN)www.eren.doe.gov

• Office of Building Technology, State andCommunity Programswww.eren.doe.gov/buildings

• Office of Industrial Technologieswww.oit.doe.gov

• Office of Transportation Technologieswww.ott.doe.gov

• Office of Power Technologieswww.eren.doe.gov/power

• Federal Energy Management Programwww.eren.doe.gov/femp/

• Clean Energy for the 21st Centurywww.eren.doe.gov/cleanenergy

• DOE/EERE’s Regional Officeswww.eren.doe.gov/rso.html

• DOE Golden Field Officewww.eren.doe.gov/golden/

• State Energy Programwww.eren.doe.gov/buildings/state_energy/

• Weatherization Assistance Programwww.eren.doe.gov/buildings/weatherization_assistance/

• Center of Excellence for Sustainable Developmentwww.sustainable.doe.gov

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