Kristen Cheriegate | ICAST Policy Analyst
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President Biden Releases Fiscal Year 2023 Budget Proposal
On March 28, President Biden released his $5.8T fiscal year (FY) 2023 budget proposal. The final FY22 budget was not everything the President had hoped for, so it is fair to wonder how well the proposed budget for FY23 will hold up. That being said, some of the proposed numbers are worth keeping an eye on:
- $11.9B for the Environmental Protection Agency
- A 25% increase over current spending of $9.5 billion
- $48.2B for the U.S. Department of Energy (DOE)
- A 7% increase ($3.3B) over current spending of $44.9B
- $71.9B for the Department of Housing and Urban Development
- Approximately $12.3B more than the FY21 level, and $6.2B more than the FY22 level
- $17.5B for the Interior Department
- A 24% increase over the current $14.1B
- This includes $60M for the Civilian Climate Corps
The proposed budget includes increased spending on numerous climate change, energy research, and environmental programs. According to budget documents, a total of $44.9B would go across agencies to tackle the climate crisis, a $16.7B increase over FY21 enacted levels; unfortunately, the FY23 proposal does not contain exact FY22 comparisons for this spending, as the FY22 budget was only finalized a few weeks ago.
U.S. Department of Energy Unveils Fiscal Year 2023 Spending Plans
The DOE has published its FY23 budget request brief alongside the announcement of the President’s draft FY23 budget. Although many of the numbers remain the same from previous years, there are some new requests for FY23. Some of the new requests seek to scale up clean energy materials and processing and undertake deep retrofits and energy conservation measures for buildings through programs at the Office of Energy Efficiency and Renewable Energy. Additional highlights include:
- $1B+ to create jobs by building and improving clean energy infrastructure through newly established offices led by the Under Secretary for Infrastructure
- $727M for the new office of State and Community Energy Programs. This includes:
- $502M to weatherize at least 50,000 homes through the Weatherization Assistance Program
- $30M for the Weatherization Readiness Fund to support health and safety upgrades necessary for weatherization and efficiency retrofits
- $100M for the Low-Income Home Energy Assistance Program Advantage pilot to retrofit and decarbonize low-income households
- $502M to weatherize at least 50,000 homes through the Weatherization Assistance Program
Renewable Energy Advocates Ask for Florida Net Metering Bill to be Vetoed
Florida’s House Bill 741 has passed both Chambers and is currently sitting on Governor DeSantis’ desk. If signed, HB 741 will reduce the rate paid to solar customers who provide their extra electricity back to the grid. Initially, the legislation called for a swift change in the State’s net metering policy, i.e., by January 1, 2023, rates for new* net-metering customers would be reduced from the retail price (what consumers pay for electricity end-use) to an “avoided cost” rate (the wholesale cost to utilities). However, advocates were able to lobby the sponsors and signatories to amend the language to a slow taper – rates for new* net-metering customers will be reduced by 25% in 2024 and gradually decrease to the avoided cost rate in 2029. If the bill is passed, the extended timeline will at least give the industry time to adapt.
Per the enrolled (i.e., passed in both chambers) legislation, the rule changes will prevent net-metering customers from being “subsidized” by non-net metering customers. Environmentalists and renewable energy advocates are calling on the Governor to veto the bill.
* Existing customers (those participating in net metering before the effective date of the rule changes) would have 20 years to continue using the rates that applied prior to the adoption of the new rule.
* Existing customers would have 20 years to continue using the rates that applied at the time their applications were approved.