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The U.S. Department of Energy announced February 9, 2022, a major reorganization, creating a new “Undersecretary for Infrastructure” to manage the $62 billion allocated to the department in the 2021 bipartisan infrastructure law, the Infrastructure and Investment Jobs Act.

The new undersecretary will be responsible for implementing the new law to help deploy emerging clean energy technologies and bolster the grid.

The new organizational chart shows a reshuffling of a number of existing offices, placing into the new structure programs ranging from the Loan Program Office, the Office of Clean Energy Demonstrations, and the Office of Indian Energy Policy and Programs.

WHAT DOES THE REORG MEAN FOR HYDROPOWER AND MARINE ENERGY?

The core activities and leadership of DOE’s Water Power Technologies Office (WPTO) remain unchanged. For the waterpower industry (including conventional hydro, pumped storage hydro, and marine energy), WPTO will remain a key partner in funding cutting-edge research, development, and deployment of hydropower and critical early-stage marine energy innovation and technology deployment.

WPTO, under the acting leadership of Jennifer Garson (photo on left, below), will remain an office within DOE’s Office of Energy Efficiency and Renewable Energy (EERE).

Kelly Speakes-Backman (photo in center, below) will continue to lead EERE as the Principal Deputy Assistant Secretary, with the able support of Alejandro Moreno (photo on right, below) as Deputy Assistant Secretary for Renewable Power.

IMPACT ON IMPLEMENTATION OF INFRASTRUCTURE-RELATED FUNDS

The new reorganization will likely impact implementation of the $750 million that the National Hydropower Association (NHA) and its environmental and dam safety community allies in the Uncommon Dialogue were able to secure under the 2021 infrastructure law.

What’s included in the $750 million grant programs?

• The new law provides $125 million (until expended) to incentivize incremental new hydropower production under the section 242 of the 2005 Energy Policy Act (as a reminder, this is a huge increase compared to previous years’ $7 million in annual appropriations).
• For the very first time, incentives for efficiency improvements at existing hydropower facilities under section 243 of the 2005 Act would receive funds — an appropriated $75 million (until expended).
• The law also provides $553.6 million for a new program under section 247 of the 2005 Energy Policy Act to offer grants of up to $5 million for environmental, dam safety, or grid resiliency investments at existing hydropower facilities.

What’s included for Marine Energy?

The reorganization will likely not impact distribution of funds appropriated for marine energy under the 2021 infrastructure law; funding will likely remain within the WPTO’s budget. The law provides $70.4 million for DOE’s WPTO to fund marine energy research and development as authorized under section 635 and $40 million for National Marine Energy Centers for fiscal years 2022 through 2025.

Who at DOE will administrate/implement?

It is unclear whether implementation of the hydropower grant programs will be moved to the newly created DOE Infrastructure Undersecretary or whether they will remain within EERE.

In the immediate term, it is a distinction without a difference as the new Infrastructure Office does not yet have any staff or structure.

For the time being, therefore, DOE’s Water Power Technologies Office (WPTO) will continue to work to develop the guidelines to implement the hydropower grant programs.