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This is the accessible text file for GAO report number GAO-05-379 entitled 'National Energy Policy: Inventory of Major Federal Energy Programs and Status of Policy Recommendations' which was released on June 14, 2005. This text file was formatted by the U.S. Government Accountability Office (GAO) to be accessible to users with visual impairments, as part of a longer term project to improve GAO products' accessibility. Every attempt has been made to maintain the structural and data integrity of the original printed product. Accessibility features, such as text descriptions of tables, consecutively numbered footnotes placed at the end of the file, and the text of agency comment letters, are provided but may not exactly duplicate the presentation or format of the printed version. The portable document format (PDF) file is an exact electronic replica of the printed version. We welcome your feedback. Please E-mail your comments regarding the contents or accessibility features of this document to Webmaster@gao.gov. This is a work of the U.S. government and is not subject to copyright protection in the United States. It may be reproduced and distributed in its entirety without further permission from GAO. Because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately. Report to Congressional Requesters: June 2005: National Energy Policy: Inventory of Major Federal Energy Programs and Status of Policy Recommendations: [Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-05-379]: GAO Highlights: Highlights of GAO-05-379, a report to congressional requesters: Why GAO Did This Study: The lives of most Americans are affected by energy. Increased energy demand and higher energy prices has led to concerns about dependable, affordable, and environmentally sound energy. The federal government has adopted energy policies and implemented programs over the years that have focused on the appropriate role of the federal government in energy, attempting to achieve balance between supply and conservation. The May 2001 National Energy Policy (NEP) report contained over 100 recommendations that it stated, taken together, provide a national energy plan that addresses the energy challenges facing the nation. As Congress considers existing federal energy programs and proposed energy legislation in support of the May 2001 report, GAO was asked to (1) identify major federal energy-related efforts, (2) review the status of efforts to implement the recommendations in the May 2001 NEP report, and (3) determine the extent to which resources associated with federal energy-related efforts have changed since the release of the NEP report. What GAO Found: Over 150 energy-related program activities and 11 tax preferences address eight major energy activity areas: (1) energy supply, (2) energy's impact on the environment and health, (3) low-income energy consumer assistance, (4) basic energy science research, (5) energy delivery infrastructure, (6) energy conservation, (7) energy assurance and physical security, and (8) energy market competition and education. At least 18 federal agencies, from the Department of Energy (DOE) to the Department of Health and Human Services, have energy-related activities. Based on fiscal year 2003 data (the most complete data available), the federal government provided a minimum of $9.8 billion in estimated budget authority for the energy-related programs we identified. In addition, various federal energy-related income tax preferences provided another estimated $4.4 billion in outlay equivalent value, primarily for energy supply objectives. On the revenue side, the federal government collected about $10.1 billion in fiscal year 2003 through various energy-related programs and about $34.6 billion in energy-related excise taxes. Significant collections involve royalties from the sale of oil and gas resources on federal lands, while taxes on gasoline and other fuels account for most of the excise taxes. While DOE reports that most of the 2001 NEP report recommendations are implemented, it is difficult to independently assess the status of efforts made to implement these recommendations because of limited information and the open-ended nature of some of the recommendations themselves. For example, the NEP report recommended the development of energy educational programs, including possible legislation to create education programs funded by the energy industry. However, DOE's January 2005 status report on NEP implementation provided only an overview of federal energy education efforts and made no mention of possible legislation to create such programs. In addition, some of the recommendations are open-ended and lack a specific, measurable goal, which makes it difficult to assess progress. Without a specific, measurable goal, it can be difficult to understand how and to what extent activities are helping to fulfill a recommendation. While this report does not make recommendations, it provides observations on the lack of information on the status of the NEP recommendations, which may hinder policy makers in assessing progress and determining future energy policies. Resources devoted to energy-related programs have grown since the release of the NEP report. For example, compared with fiscal year 2000, just prior to the 2001 NEP report, fiscal year 2003 estimated budget authority for energy-related programs grew by about 30 percent, from $7.3 billion to $9.6 billion. In addition, over the same period, estimated outlay equivalents for energy-related income tax preferences grew by over 60 percent, from $2.7 billion to $4.4 billion. Federal efforts have continued to address the eight major energy activities. Energy supply continues to be a major emphasis of the federal efforts, accounting for a majority of the growth. What GAO Recommends: This report does not contain any recommendations. In commenting on this report, DOE stated that the NEP report and status report were not intended to provide a full accounting of federal energy-related activities. Our report does not suggest that they were so intended. www.gao.gov/cgi-bin/getrpt?GAO-05-379. To view the full product, including the scope and methodology, click on the link above. For more information, contact Jim Wells at (202) 512- 3841 or wellsj@gao.gov. [End of section] Contents: Letter: Results in Brief: Over 150 Different Federal Government Program Activities Address Energy: It Is Difficult to Assess Progress of Federal Efforts to Implement the National Energy Policy Report Recommendations: Federal Resources Devoted to Energy-Related Activities Have Grown since 2000: Observations: Appendixes: Appendix I: Objectives, Scope, and Methodology: Appendix II: Inventory of Federal Energy Programs, by Activity, Agency, and Energy Type: Appendix III: Federal Electricity Support: PMAs and TVA Market and Deliver Power Generated at Federal Facilities: Rural Utilities Service Provides Federal Loans and Loan Guarantees: Appendix IV: NEP Recommendations, DOE Reported Status, and GAO Observations: Appendix V: Fiscal Years 2000 and 2003 Estimated Budget Authority for Agency Programs, by Energy Activity Area: Appendix VI: Comparison of Budget Requests for Fiscal Years 2000, 2003, and 2005 for Agency Programs, by Energy Activity: Appendix VII: Comments from the Department of Energy: Tables: Table 1: Federal Resources for the Eight Major Energy Activity Areas, Fiscal Year 2003: Table 2: Federal Resources for Energy Supply, Fiscal Year 2003: Table 3: Federal Resources for Energy Supply, by Major Energy Type, Fiscal Year 2003: Table 4: Federal Resources for Energy's Impact on the Environment and Health, by Agency, Fiscal Year 2003: Table 5: Energy Delivery Infrastructure, Fiscal Year 2003 Estimated Budget Authority: Table 6: Federal Resources for Energy Conservation, by Agency, Fiscal Year 2003: Table 7: Energy Assurance and Physical Security Programs, Fiscal Year 2003 Estimated Budget Authority: Table 8: Energy Market Competition and Education, Fiscal Year 2003 Estimated Budget Authority: Table 9: Federal Energy-Related Collections, Fiscal Year 2003: Table 10: Energy-Related Excise Tax Collections, Fiscal Year 2003: Table 11: Estimated Budget Authority for Energy Activity Area, Fiscal Years 2000 and 2003: Table 12: Energy-Related Income Tax Preferences as Reported for Fiscal Years 2000 and 2003: Table 13: Budget Requests, by Major Energy Activity Area, Fiscal Years 2000, 2003, and 2005: Table 14: Inventory of Federal Energy Programs, by Activity and Agency Program, Including Fiscal Year 2003 Estimated Budget Authority: Table 15: Inventory of Agencies and Programs Identified with Energy Activity, Including Fiscal Year 2003 Estimated Budget Authority: Table 16: Inventory of Federal Energy Supply Programs, by Major Energy Type, Including Fiscal Year 2003 Estimated Budget Authority: Table 17: Estimated Implicit Support to Federal Electric Power in 1998 (1999 dollars): Table 18: NEP Recommendations, DOE Reported Status, and GAO Observations: Abbreviations: ASCR: Advanced Scientific Computing Research: BES: Basic Energy Science: BLM: Bureau of Land Management: CAFE: Corporate Average Fuel Economy: CFTC: Commodity Futures Trading Commission: CHP: combined heat and power: CSLF: Carbon Sequestration Leadership Forum: DHS: Department of Homeland Security: DOD: Department of Defense: DOE: Department of Energy: DOI: Department of the Interior: DOJ: Department of Justice: DOT: Department of Transportation: EIA: Energy Information Administration: ENRD: Environment and Natural Resources Division: EPA: Environmental Protection Agency: FEMP: Federal Energy Management Program: FERC: Federal Energy Regulatory Commission: FHWA: Federal Highway Administration: FTA: Federal Transit Administration: FTC: Federal Trade Commission: FY: fiscal year: HHS: Department of Health and Human Services: IEA: International Energy Agency: IPHE: International Partnership for the Hydrogen Economy: LIHEAP: Low-Income Home Energy Assistance Program: MMS: Minerals Management Service: NEP: May 2001 National Energy Policy report: NEPDG: National Energy Policy Development Group: NHHOR: Northeast Home Heating Oil Reserve: NHTSA: National Highway Traffic Safety Administration: NOAA: National Oceanic and Atmospheric Administration: NRC: Nuclear Regulatory Commission: NSF: National Science Foundation: NSR: New Source Review: OAR: Office of Air and Radiation: OCS: outer continental shelf: OMB: Office of Management and Budget: OSM: Office of Surface Mining: PMA: Power Marketing Administration: R&D: research and development: RUS: Rural Utilities Service: SEC: Securities and Exchange Commission: SPR: Strategic Petroleum Reserve: TVA: Tennessee Valley Authority: USAID: U.S. Agency for International Development: USDA: U.S. Department of Agriculture: USTDA: U.S. Trade and Development Agency: WIP: Weatherization and Intergovernmental Program: Letter June 10, 2005: The Honorable Robert Byrd: Ranking Minority Member: Committee on Appropriations: United States Senate: The Honorable Jeff Bingaman: Ranking Minority Member: Committee on Energy and Natural Resources: United States Senate: The Honorable James Jeffords: Ranking Minority Member: Committee on Environment and Public Works: United States Senate: The daily lives of most Americans--as well as the health of our economy and our high standard of living--are directly affected by the availability of energy. Most sectors of American society, from the agricultural and industrial to the transportation and residential, rely upon a readily available supply of energy to function. According to the most recent data from the Department of Energy's (DOE) Energy Information Administration (EIA), the United States is the largest single consumer of energy, accounting for one-fourth of the world's consumption. Consumption is expected to grow here and throughout the world in the near future. Further, energy prices have risen significantly in recent years--American consumers now spend about three- quarters of a trillion dollars a year on it--and prices are not expected to drop significantly in the foreseeable future. The prospect of increased demand--and perhaps still higher prices--has led to concerns about the adequacy of our energy supply to sustain these consumption levels. Although the federal government has adopted various energy policies and implemented related programs over the years, energy policies have frequently been the subject of heated debate. Concerns about these policies and programs have most often focused on the appropriate role of the federal government in energy matters and in how to achieve the appropriate balance between increasing supply and encouraging conservation. The May 2001 National Energy Policy (NEP) report laid out the most recent national energy policy proposal: that is, to promote dependable, affordable, and environmentally sound production and distribution of energy for the future. The NEP report contained over 100 recommendations that it stated, taken together, provide a national energy plan that addresses the energy challenges facing the nation. As Congress considers existing federal energy programs and proposed energy legislation in support of the NEP report, you asked us for a clearer understanding of how the federal government is working to meet our nation's energy needs. Specifically, you asked us to (1) identify the federal government's major energy-related efforts, (2) review the status of efforts to implement the May 2001 NEP report recommendations, and (3) determine the extent to which resources associated with federal energy-related efforts have changed since the release of the NEP report. To identify the federal government's major energy-related efforts, we focused our review on several key federal agencies that have the most responsibility for implementing the recommendations of the NEP report: the Departments of Energy, the Interior, Commerce, Transportation, State, and Agriculture and the Environmental Protection Agency. In addition to identifying energy-related program activities, we identified energy-related income tax preferences[Footnote 1] from the lists of tax expenditures published annually by the Office of Management Budget that accompany the President's budget. We also obtained data on energy-related federal collections, including revenue from royalties, fees, and excise taxes. We collected and analyzed agency-reported program and tax policy descriptions and budget request and funding information at these key agencies and at other agencies as time allowed; we developed an inventory of the energy-related program activities we identified. Because it was often difficult to quantify the resources associated with energy-related aspects of various programs, where possible, we relied on agency estimates of budget authority[Footnote 2] for fiscal year 2003--the most recent year for which data were available for most of the programs as we conducted the majority of our review during fiscal year 2004. For example, some programs received budget authority as part of a larger appropriation, and agencies had to estimate the portion associated with the energy- related activity. To facilitate comparing the energy-related resources associated with outlay and tax programs, we used the Department of the Treasury's outlay equivalent[Footnote 3] estimates for the income tax preferences. The aggregate value for energy-related tax preferences is useful for gauging general magnitude but does not take into account interactions between individual provisions. We were not able to review every agency within the federal government that might have energy- related activities. Principally, we did not review the Department of Defense (DOD), which is, among other things, a principal federal government energy consumer. In addition, although the federal government has a major impact on the energy industry through regulatory actions, this review did not include an inventory of federal regulatory actions that affect energy, but rather focused on federal energy- related programs and tax policies. To review the status of federal efforts to implement the recommendations contained in the May 2001 NEP report, we reviewed publicly reported status information on the implementation of the NEP recommendations, focusing on DOE's most recent January 2005 report on the status of the 106[Footnote 4] NEP recommendations. We discussed efforts to monitor and report on the status of these recommendations with DOE's Office of National Energy Policy and other federal agencies involved in energy-related efforts. We also discussed the energy- related programs with the appropriate agency personnel and, when possible, determined whether and how the programs were related to the NEP report recommendations. To determine the extent to which resources associated with federal energy-related efforts have changed since the release of the NEP report, we compared fiscal year 2000 (shortly before the NEP report) federal programs and budget authority estimates with fiscal year 2003 programs and budget authority estimates. In addition, we compared outlay equivalent estimates for energy-related income tax preferences between fiscal years 2000 and 2003. Due to the constraints of developing an inventory of federal energy-related efforts and associated resources within the review time frame, we did not assess the changes within the individual program activities within our inventory. We conducted our review between December 2003 and May 2005 in accordance with generally accepted government auditing standards. A detailed description of our objectives, scope, and methodology is contained in appendix I. Results in Brief: Federal agencies oversee a myriad of energy-related programs and income tax preferences that address eight major energy activity areas: (1) energy supply, (2) energy's impact on the environment and health, (3) low-income energy consumer assistance, (4) basic energy science research, (5) energy delivery infrastructure, (6) energy conservation, (7) energy assurance and physical security, and (8) energy market competition and education. At least 18 different federal agencies, from the Department of Energy (DOE) to the Department of Health and Human Services (HHS), have energy-related program activities, with DOE accounting for more than one-half the federal government's energy- related budget authority, based on fiscal year 2003 estimates. In fiscal year 2003, the federal government provided a minimum of $9.8 billion in estimated budget authority for the over 150 energy-related program activities we identified. Energy supply programs represent about one-quarter of these federal program resources at $2.4 billion, followed by about $2.2 billion for low-income energy assistance, about $1.9 billion to address energy's impact on the environment and health, $1.2 billion for basic energy science research, about $0.9 billion for energy delivery infrastructure, about $0.8 billion for energy conservation, and about $0.2 billion each for energy assurance and security and energy market competition and education. In addition, various federal energy-related income tax preferences provided another estimated $4.4 billion in outlay equivalent value in fiscal year 2003, primarily for energy supply objectives. On the revenue side, in fiscal year 2003, the federal government collected about $10.1 billion through various energy-related programs and about $34.6 billion in energy- related excise taxes. Collections include offsetting fees that fund energy-related programs; however, significant collections are from federal oil and gas royalties, while taxes on gasoline and other fuels account for most of the excise tax revenue. It is difficult to assess the status of efforts made to implement the NEP report recommendations because of limited information and the open- ended nature of some of the recommendations themselves. Four years after the release of the NEP report, implementation of most of its recommendations remains a work in progress since they either address ongoing federal activities or require legislation to be enacted. While DOE's January 2005 status report provided more information on the status of recommendation implementation than has been previously reported, that information is still incomplete. For example, the 2001 NEP report recommended the development of energy educational programs, including possible legislation to create education programs funded by the energy industry. However, DOE's January 2005 status report provided only an overview of federal energy education efforts and made no mention of possible legislation to create education programs. Some of the recommendations in the 2001 NEP report are open-ended and lack specific, measurable goals, which contribute to the difficulty in assessing progress made toward implementing the recommendations. For example, a NEP report recommendation is that the President make energy security a priority of our trade and foreign policy. In reporting on the status of this recommendation, DOE states that energy security has been made a priority of our trade and foreign policy through various bilateral and multilateral activities, such as the U.S.-China Oil and Gas Industry Forum. Because this recommendation lacks a specific, measurable goal, it is difficult to understand how and to what extent the activities mentioned are helping to fulfill the recommendation. Appendix IV provides a complete list of the NEP recommendations, DOE's January 2005 reported status, and GAO observations on the reported status. Federal resources devoted to energy-related program activities have grown since the release of the 2001 NEP report. For example, compared with fiscal year 2000, just prior to the release of the NEP report, fiscal year 2003 estimated budget authority for energy-related programs grew by about 30 percent, from $7.3 billion to $9.6 billion. In addition, over the same time period, outlay equivalent estimates for energy-related income tax preferences grew by over 60 percent, from $2.7 billion to $4.4 billion. While we did not review changes within individual programs and tax policies, federal efforts have continued to address the eight major energy activities of supply, environment and health, low-income assistance, basic science, infrastructure, conservation, assurance and security, and competition and education. Energy supply continues to be a major emphasis of the federal efforts, accounting for a majority of both total federal resources and their growth since 2000. For example, income tax preferences associated with energy supply have represented almost all of the $1.7 billion growth in income tax preferences. Within energy supply income tax preferences, growth has occurred primarily with efforts targeting fossil and renewable energy supplies. While this report does not contain recommendations, we do note a lack of a central source of information on the progress of federal energy-related efforts that may hinder policy makers in determining the direction of future energy policy initiatives. Over 150 Different Federal Government Program Activities Address Energy: At least 18 different federal agencies, from DOE to HHS, conduct at least 158 energy-related program activities. These programs address eight major categories of activities, ranging from energy supply to energy conservation. In fiscal year 2003, for the energy program activities we identified, the federal government provided at least $9.8 billion in estimated budget authority. In addition, 11 federal energy- related income tax preferences were estimated at $4.4 billion in outlay equivalent value for fiscal year 2003. On the revenue side, in fiscal year 2003, the federal government collected about $10.1 billion through various energy-related programs that include fees and royalties on development of federal energy resources and about $34.6 billion in excise taxes on gasoline and other fuels. Major Energy Program Activities Fall into Eight Categories: Federal energy-related programs and income tax preferences address eight major energy activity areas: (1) energy supply, (2) energy's impact on the environment and health, (3) low-income energy consumer assistance, (4) basic energy science research, (5) energy delivery infrastructure, (6) energy conservation, (7) energy assurance and physical security, and (8) energy market competition and education. On the basis of our analysis of fiscal year 2003 estimated budget authority for energy-related programs and outlay equivalent estimates for energy-related income tax preferences, resources to address energy supply activities accounted for almost one-half of the $14.2 billion in federal energy-related resources. Table 1 provides a summary of fiscal year 2003 resources for energy-related programs we identified and income tax preferences by the eight major energy activity areas. Appendix II provides additional details on energy-related programs by major activity area, by agency, and by energy type. In addition to programs and income tax preferences, other federal policies that are not quantified also affect these major energy areas. For example, in the supply area, the federal government provides electricity support through federal utilities and loan programs. Also, regarding energy's impact on the environment and energy conservation, the federal government, as a major energy user, has energy use policies that influence both the type and amounts of energy used. Table 1: Federal Resources for the Eight Major Energy Activity Areas, Fiscal Year 2003: Dollars in billions. Energy activity area: Energy supply; Agency program activities (estimated budget authority): $2.39; Income tax preferences: (outlay equivalent estimates)[A]: $4.18. Energy activity area: Energy's impact on the environment and health; Agency program activities (estimated budget authority): $1.87; Income tax preferences: (outlay equivalent estimates)[A]: $0.09. Energy activity area: Low-income energy consumer assistance; Agency program activities (estimated budget authority): $2.21; Income tax preferences: (outlay equivalent estimates)[A]: None. Energy activity area: Basic energy science research; Agency program activities (estimated budget authority): $1.17; Income tax preferences: (outlay equivalent estimates)[A]: None. Energy activity area: Energy delivery infrastructure; Agency program activities (estimated budget authority): $0.88; Income tax preferences: (outlay equivalent estimates)[A]: None. Energy activity area: Energy conservation; Agency program activities (estimated budget authority): $0.79; Income tax preferences: (outlay equivalent estimates)[A]: $0.11. Energy activity area: Energy assurance and physical security; Agency program activities (estimated budget authority): $0.25; Income tax preferences: (outlay equivalent estimates)[A]: None. Energy activity area: Energy market competition and education; Agency program activities (estimated budget authority): $0.24; Income tax preferences: (outlay equivalent estimates)[A]: None. Total; Agency program activities (estimated budget authority): $9.80; Income tax preferences: (outlay equivalent estimates)[A]: $4.38. Source: GAO analysis of agency estimates. [A] The aggregate value for energy-related tax preferences is useful for gauging general magnitude and does not take into account interactions between individual provisions. [End of table] Energy Supply: On the basis of our analysis of fiscal year 2003 resources, energy supply programs and related income tax preferences accounted for about $6.6 billion, or almost one-half of the federal resources provided to energy-related programs. We identified 6 agencies, conducting 65 different program activities, addressing supply issues such as access for energy development on federal lands, research and development for energy sources ranging from clean coal to nuclear fusion, and nuclear energy regulation. In addition to these 6 agencies, Treasury reports on 9 different income tax preferences that address energy supply. Specifically, several provisions of the Internal Revenue Code grant favorable tax treatment to activities such as the recovery of the actual capital investment costs of discovering, purchasing, and developing energy. These income tax preferences accounted for about $4.18 billion in fiscal year 2003 outlay equivalent estimates, more than the total estimated budget authority of $2.39 billion for energy supply programs. Table 2 shows fiscal year 2003 outlay equivalent estimates for supply-related income tax preferences and fiscal year 2003 estimated budget authority for energy supply programs by major federal agency. Appendix II provides details on energy supply programs by agency and energy type. Table 2: Federal Resources for Energy Supply, Fiscal Year 2003: Dollars in thousands. Income tax preferences: Alternative (nonconventional) fuel production credit (from fossil sources); Outlay equivalent estimates[A]: $1,720,000. Income tax preferences: Excess of percentage over cost depletion, fuels; Outlay equivalent estimates[A]: $910,000. Income tax preferences: Credit for enhanced oil recovery costs; Outlay equivalent estimates[A]: $620,000. Income tax preferences: New technology credit; Outlay equivalent estimates[A]: $380,000. Income tax preferences: Expensing of exploration and development costs, fuels; Outlay equivalent estimates[A]: $230,000. Income tax preferences: Capital gains treatment of royalties on coal; Outlay equivalent estimates[A]: $140,000. Income tax preferences: Exclusion of interest on energy facility bonds; Outlay equivalent estimates[A]: $130,000. Income tax preferences: Income tax credits for alcohol fuels; Outlay equivalent estimates[A]: $30,000. Income tax preferences: Exception from passive loss limitation for working interests in oil and gas properties; Outlay equivalent estimates[A]: $20,000. Income tax preferences: Total; Outlay equivalent estimates[A]: $4,180,000. Program activities, by agency: Department of Energy; Outlay equivalent estimates[A]: $1,259,299. Program activities, by agency: Department of the Interior; Outlay equivalent estimates[A]: $513,423. Program activities, by agency: Nuclear Regulatory Commission; Outlay equivalent estimates[A]: $392,094. Program activities, by agency: Department of Agriculture; Outlay equivalent estimates[A]: $181,313. Program activities, by agency: National Science Foundation; Outlay equivalent estimates[A]: $44,237. Program activities, by agency: Environmental Protection Agency; Outlay equivalent estimates[A]: $1,200. Program activities, by agency: Total; Outlay equivalent estimates[A]: $2,391,566. Source: GAO analysis of agency estimates. [A] The aggregate value for energy-related tax preferences is useful for gauging general magnitude and does not take into account interactions between individual provisions. [End of table] Supply programs address four primary types of energy: fossil, renewable, nuclear, and alternative. Fossil energy supply includes coal, oil, and natural gas production and accounted for $4.7 billion of the almost $6.6 billion in fiscal year 2003 resources for energy supply programs. Fossil resources included $1.1 billion in estimated budget authority for programs such as clean coal technology research and development. Resources addressing fossil supply also included an estimated $3.6 billion in outlay equivalent value from 6 different income tax preferences. These income tax preferences include the support of fossil fuel production from nonconventional sources such as synthetic fuels produced from coal. Renewable energy supply includes hydropower, biomass, geothermal, wind, and solar energy. Estimated budget authority for renewable programs was at $349 million in fiscal year 2003, and these programs generally address renewable energy research and development. In addition, 2 income tax preferences, a new technology credit and exclusion of interest on facility bonds, supported renewable energy at an estimated outlay equivalent of $510 million in fiscal year 2003. Nuclear energy supply-related programs, with estimated budget authority of about $507 million in fiscal year 2003, address nuclear fission and mainly consist of DOE's nuclear energy research and development programs and the Nuclear Regulatory Commission's (NRC) regulation of nuclear energy. Finally, alternative energy programs, with estimated budget authority of $439 million in fiscal year 2003, include transportation fuels other than gasoline or diesel; traditional energy sources used in untraditional ways (distributed energy);[Footnote 5] and energy sources of the future, such as hydrogen and fusion. Hydrogen and fusion programs account for most of the programs under alternative energy. In addition, 1 tax preference, providing tax credits for alcohol fuels, supports alternative energy supply. Table 3 shows the fiscal year 2003 level of resources by energy supply type. Appendix II provides additional details on the types of energy supply addressed by specific agency programs. Table 3: Federal Resources for Energy Supply, by Major Energy Type, Fiscal Year 2003: Dollars in thousands. Energy type: Fossil; Agency program activities (estimated budget authority): $1,074,021; Income tax preferences (outlay equivalent estimates)[A]: $3,640,000. Energy type: Renewable; Agency program activities (estimated budget authority): 348,962; Income tax preferences (outlay equivalent estimates)[A]: $510,000. Energy type: Nuclear; Agency program activities (estimated budget authority): 506,535; Income tax preferences (outlay equivalent estimates)[A]: $0. Energy type: Alternative; Agency program activities (estimated budget authority): 439,048; Income tax preferences (outlay equivalent estimates)[A]: $30,000. Total; Agency program activities (estimated budget authority): $2,368,566[B]; Income tax preferences (outlay equivalent estimates)[A]: $4,180,000. Source: GAO analysis of agency estimates. [A] The aggregate value for energy-related tax preferences is useful for gauging general magnitude and does not take into account interactions between individual provisions. [B] Total energy supply-related programs were $2,391,566 (in thousands); however, 1 program was not focused on a specific type of energy and, thus, was not included in this table--representing the difference of $23 million. [End of table] In addition to resources for programs and income tax preferences directed at the energy sector, the federal government provides other forms of support, largely to users of electricity. While this support is not captured in the programs or income tax preferences, it does provide benefits that represent implicit federal support for certain users of electricity. Specifically, there are five federal utilities, four Power Marketing Administrations (PMA) and the Tennessee Valley Authority (TVA), that provide electricity and transmission services to customers in their regions. The PMAs market power produced primarily at federal hydroelectric dams and projects that are owned and operated by either the Department of the Interior's (DOI) Bureau of Reclamation, the U.S. Army Corps of Engineers, or the International Boundary and Water Commission. TVA markets electricity produced at its own fossil, nuclear, and hydroelectric energy facilities. In addition, another federal agency, the Rural Utilities Service (RUS), provides federal loan guarantees and other services to rural utilities. The federal support provided through these agencies differs from that of the other programs and incentives described in this report because it does not provide any federal funding to electricity customers. Revenue from sales of electricity generated by federally owned facilities and from loan repayment (in the case of RUS) is intended to largely pay the costs to the federal government of providing the electricity and loans. Therefore, the programs undertaken by these agencies are intended to be revenue-neutral to the federal government. Nonetheless, the electricity support provided by these agencies constitutes a benefit to users--an implicit federal subsidy--because the revenues collected by the agencies have generally been below what would have been collected for the same services by private entities. Appendix III provides additional details on these support programs. Energy's Impact on the Environment and Health: We identified 29 program activities, implemented by 11 different agencies,[Footnote 6] that address the impact of energy development and use on the environment and health. In fiscal year 2003, these programs represented estimated budget authority of $1.87 billion. In addition, an income tax preference for clean-fuel burning vehicles amounted to an estimated $90 million outlay equivalent in fiscal year 2003.[Footnote 7] Major program focuses include nuclear waste cleanup and environmental science research. The largest portion of the funding in this energy policy area goes to DOE, which received an estimated $1.6 billion for energy-related programs in fiscal year 2003. The Environmental Protection Agency (EPA), with a primary mission of protecting the nation's environment, is also a major agency involved in addressing energy's impact on the environment and health. EPA is a major regulator of energy development and use through its implementation of environmental laws, such as the Clean Air Act. We were able to quantify an estimated $24.2 million in fiscal year 2003 that supported EPA programs addressing energy's impact on the environment. However, EPA regulatory activities affect more than the energy sector, and, because EPA does not track costs by industry sector, the agency was not able to determine with complete certainty how much of its $8 billion annual budget is energy-related. Thus, we believe the estimate for EPA programs related to energy's impact on the environment is understated. Finally, because energy development and use can have a significant impact on the environment and health,[Footnote 8] other programs that primarily address other areas, such as renewable supply and energy conservation, also address the environmental impacts of energy. However, within this inventory, those programs are accounted for under their primary area of energy supply and conservation and are not also included here. Table 4 summarizes fiscal year 2003 resources for energy's impact on the environment and health, by major agency; appendix II provides more details on the agencies' individual programs. Table 4: Federal Resources for Energy's Impact on the Environment and Health, by Agency, Fiscal Year 2003: Dollars in thousands. Agency: Department of Energy; Estimated budget authority: $1,599,566. Agency: U.S. Agency for International Development; Estimated budget authority: $91,900. Agency: Nuclear Regulatory Commission; Estimated budget authority: $83,671. Agency: Environmental Protection Agency; Estimated budget authority: $24,200. Agency: Department of the Interior; Estimated budget authority: $19,148. Agency: Department of Agriculture; Estimated budget authority: $18,778. Agency: Department of Commerce; Estimated budget authority: $16,632. Agency: U.S. Army Corps of Engineers; Estimated budget authority: $9,697. Agency: Department of State; Estimated budget authority: $1,440. Agency: Department of Transportation; Estimated budget authority: $650. Agency: National Science Foundation; Estimated budget authority: $111. Agency: Total;