- Wednesday, April 17, 2024

The United States is entering a radically different energy landscape. It’s not because of the Green New Deal or the energy transition, but because energy demand is skyrocketing once again. The reshoring of American manufacturing, new energy-intensive industries, and an insatiable demand for data centers will require the U.S. energy grid to expand at a rapid clip not seen in generations. Gone are the days of stagnant or declining energy demand.

Just as demand for new energy is set to reach all-time highs, breakthrough technologies are beginning to reach the market and existing industries are innovating new, cleaner ways to produce more energy. There is a strong appetite for these new technologies as companies seek out the right mix of clean, reliable, and affordable energy.

America’s inspiring private-sector innovators, with the help of stable federal investments, can meet this challenge.

As the world’s largest funder of energy research, the U.S. Department of Energy (DOE) plays an important role in supporting private-sector efforts. But to be an effective partner, the Department must prioritize its resources for America’s global energy leadership to advance innovation, protect national security interests and support fundamental research and science.

While DOE has experienced piecemeal changes since its inception during the energy crisis of the 1970s, these tweaks need to be supplemented with bolder, forward-looking changes to effectively respond to the rapidly changing global energy landscape. Today, the United States faces profoundly different conditions from those that spurred the Department’s creation 50 years ago, yet the legacy structure of the Department largely persists.

The Department has a long history of unlocking new technologies through early-stage investments. The forerunner to DOE helped invent nuclear energy. The Department later supported private-sector innovators in the development of hydraulic fracturing technologies that unleashed the shale revolution. Most notably, this era of American energy dominance has been marked by the U.S. becoming the largest oil and gas producer in the history of the world. The commercialization of these technologies has helped transform the U.S. into a net energy exporter since 2019.

Continuing this track record of success will be essential to overcoming new threats to the sector’s ability to provide clean, reliable and affordable energy. American innovation is badly needed to thwart malign foreign interests seeking to control the critical mineral supply chains that are increasingly necessary for clean technologies. Similarly, public-private partnerships will help commercialize the next generation of nuclear, carbon capture, and geothermal energy technologies at scale.

In recent years, Congress has expanded the Department’s energy innovation mission, providing unprecedented funding increases to commercialize new technologies through demonstration programs. These new authorities stem from bipartisan legislation, including the Energy Act of 2020, the CHIPS and Science Act and the Infrastructure Investment and Jobs Act (IIJA) as well as an assortment of energy tax incentives. If implemented effectively, these programs could reduce emissions, lower consumer energy costs, boost domestic manufacturing, and allow the U.S. to retain its position as a global energy leader.

If not done well, we’re talking billions if not trillions of hard-earned American dollars being squandered. Large-scale demonstration projects can present unique risks and challenges, as highlighted by the DOE Inspector General’s recent budget request. Robust Congressional oversight is essential to ensure the accountability, integrity and efficiency of DOE contract awards.

The Department must take steps to better align with industry to advance its technology demonstration mission while protecting U.S. intellectual property from foreign adversaries. One way it can do this is to prioritize the permitting process for DOE-awarded projects. Absent a commitment from DOE to expedite permitting, many of these projects will encounter avoidable delays, jeopardizing potential investment and ultimately succumbing to the “Valley of Death.” While projects will potentially require permits from a dozen agencies, the DOE will be on the receiving end of Congressional scrutiny should they miss key milestones.

These challenges demand bold thinking and modernization of DOE to accelerate American energy innovation. Within the DOE itself, the current approach incentivizes political appointees and career officials alike to advocate for specific technologies rather than promoting a holistic, integrated, and practical application of technology innovation in the energy sector.

The opportunity is ripe for a new Administration to fully embrace a pro-innovation agenda by reorganizing DOE to promote energy security with a focus on getting projects built.

ClearPath released a report offering policy recommendations along with a new organizational structure to accomplish these goals in a new administration. The proposed structure empowers the next Secretary of Energy with the necessary tools to lead strategically from day one. While the report recommendations can all be implemented without new legislation, Congressional support will be vital to ensure long-term durability from one administration to the next.

The report calls for DOE to remain focused on accelerating technologies from basic research in labs to commercial deployment with an emphasis on protecting and strengthening American Intellectual Property, accelerating promising high-impact technology and expediting permitting for DOE awardees.

Taken together, the recommendations will improve DOE’s performance, efficiency and accountability to the taxpayer. It is time to act boldly to unify America’s energy strategy and modernize the DOE.

• Jeremy Harrell is Chief Strategy Officer of ClearPath, a Washington, D.C.-based nonprofit that develops and advances policies that accelerate innovations to reduce and remove global energy emissions.

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