Summary

In his State of the Union address, the President noted that the United States has agreed with other nations to reduce its greenhouse gas emissions through market forces, new technologies, and energy efficiency. The President has proposed spending $6.3 billion during the next five years for the Climate Change Technology Initiative, which would fund research and development and the deployment of new technologies to reduce the amount of carbon dioxide emitted into the atmosphere. The Energy Department (DOE) is expected to undertake most of this initiative. This report provides (1) information on how DOE plans to alter its climate change research and development spending from fiscal year 1998 to fiscal year 1999 and (2) GAO's observations on funding for research and development.

GAO noted that: (1) DOE is proposing to increase its spending to about $1.06 billion for R&D in FY 1999 to support the Climate Change Technology Initiative, a $331-million increase from funding in FY 1998 for programs related to climate change; (2) the $331-million increase, as well as the remaining $729 million, will continue to support and expand existing R&D programs in energy efficiency and renewable energy, as well as other programs related to climate change; (3) total funding, according to DOE, will address multiple energy and environmental goals, including decreasing the United States' dependence on foreign oil, improving air quality, decreasing energy costs for consumers and businesses, increasing economic competitiveness, and cutting greenhouse gas emissions; and (4) from reviewing its previous reports on R&D, GAO has drawn five common themes that Congress may want to consider as it deliberates DOE's budget proposal.