Environmental Engineering Reference
In-Depth Information
new reactors are built. In addition, while hydropower makes up the bulk of energy
generated from renewable sources, its share of the renewable energy has declined
because new wind, geothermal, and solar-generating capacity has been added
while hydropower generation has remained unchanged.
B
ACKGROUND
Source: GAO analysis of EIA data.
Figure 1. Comparison of the U.S. Energy Portfolio in 1973 and 2004.
EIA's model of energy generation in 2030 projects that the United States will
continue to primarily rely on oil to provide most of the energy in the
transportation sector and coal to provide most of the energy for generating
electricity. EIA projects that U.S. electricity generation will grow from 3,900
billion kilowatt-hours in 2005 to 5,500 billion kilowatt-hours in 2030 (see fig. 2).
In addition to funding energy R and D to develop advanced energy
technologies, DOE has funded efforts to improve energy efficiency and reduce
energy demand. For example, DOE has encouraged energy efficiency by, for
example, establishing energy efficiency standards for home appliances and air
conditioners, and the federal government provides tax credits for purchasing
energy-efficient equipment.
The federal government also provides the energy industry and consumers
with 23 tax expenditures affecting energy supply, some of which are incentives
designed to stimulate the development and deployment of advanced technologies.
From a budgetary perspective, most tax expenditures are comparable to
mandatory spending for entitlement programs because they require no further
action. Tax expenditures do not compete directly in the annual budget process
and, in effect, receive a higher funding priority than discretionary spending
