Rather than enact an FY 2007 Energy and Water Appropriations bill that normally provides appropriations to the Department of Energy for programs related to coal RD&D, Congress has agreed to fund the federal government in FY 2007 through an extension of funding authorities under a continuing resolution (CR). A continuing resolution funds the Department of Energy at the previous years (FY 2006) enacted levels. Two issues important to CURC^SM members covered by the C.R. include fossil energy appropriations and the DOE loan guarantee program.

FOSSIL ENERGY APPROPRIATIONS

The continuing resolution sets FY 2007 program funding at the FY 2006 enacted level of ~ $580 million. Importantly, the CR does not Congressionally direct subprogram funding levels; this is left to the discretion of DOE. However, the CR directs DOE to submit to Congress a spending plan for FY 2007 at the subprogram level within 30 days of the date the CR goes into effect. There will be no earmarks in the FY 2007 CR; any earmarks that were included in the FY 2006 enacted bill do not exist in the FY 2007 continuing resolution. The $257 million deferral for FutureGen in the FY 2006 enacted bill will still hold in the FY 2007 continuing resolution.

DOE LOAN GUARANTEE PROGRAM

The CR provides $7 million to DOE to administer the DOE loan guarantee program. It caps the level of DOE loan guarantee commitments at $4 billion. The CR does not permit DOE to issue any loan guarantees until final regulations are issued, and directs the Department to issue regulations within 6 months from the date the CR is passed. DOE is also required to submit a report to Congress identifying applicant information, including the technologies seeking the guarantee, amounts of guarantees, and applicants assessment of risk. Congress is also requiring an annual, independent audit of the program, as well as a second, annual audit to be conducted by the Comptroller General.

For more information about FY 2007 Energy & Water appropriations, please contact CURC^SM at (202)298-1850.