Challenges and Recommendations for the Department of Energy’s Office of Clean Energy Demonstrations
The Department of Energy’s Office of Clean Energy Demonstrations (OCED), established in 2021, plays a pivotal role in managing significant investments aimed at advancing clean energy technologies like carbon capture, hydrogen, and advanced nuclear energy. This effort stems from historic funding through the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act, collectively allocating approximately $27 billion from fiscal years 2022 to 2026. The goal is to reduce risks in deploying new technologies, catalyze private investment, and drive the commercialization of innovative energy solutions.
OCED has achieved some milestones, such as issuing funding announcements across its eight portfolio areas and finalizing awards for numerous projects. These activities align with six of eight leading practices for federal coordination, such as bridging organizational cultures and leveraging resources. However, gaps remain in defining long-term goals and ensuring accountability, which are critical for the effective coordination of interagency efforts. Without clearly established outcomes and mechanisms for performance evaluation, OCED risks missing opportunities to fully capitalize on its mandate according to a recent GAO Report.
Performance management is another area requiring improvement. While OCED has partially implemented steps like setting fiscal year goals and collecting some performance data, it has yet to establish comprehensive measures to assess results and guide decisions. For example, the absence of near-term objectives linked to its long-term vision of reducing clean energy risks limits its ability to evaluate progress effectively. Without this framework, the proposed State of the Portfolio annual reports may lack the depth necessary to inform decision-making.
Workforce planning presents another challenge for OCED. As of August 2024, the office had 250 employees but needed to fill 101 additional positions to achieve full staffing. Although OCED has developed a training program and partnered with a talent acquisition firm, it has not created a strategic workforce plan or established mechanisms to monitor human capital progress effectively. The lack of such a plan could hinder OCED’s ability to meet current and future demands, especially as it transitions from issuing funding opportunities to managing awarded projects.
The implications of these issues are significant. OCED is tasked with managing complex, large-scale demonstration projects that require meticulous oversight to mitigate risks and ensure taxpayer dollars are spent effectively. Its inability to fully align with leading practices in coordination, performance management, and workforce planning could undermine its capacity to deliver on its mission. Moreover, these gaps could result in inefficiencies, delays, and missed opportunities to advance critical clean energy technologies.
To address these challenges, the Government Accountability Office (GAO) has recommended that OCED fully implement performance management practices, including defining goals, collecting relevant data, and using the information to assess progress and make informed decisions. Additionally, OCED should develop a strategic workforce plan to align staffing efforts with its mission and goals. The Department of Energy has agreed to these recommendations, signaling a willingness to address the identified shortcomings.
OCED’s journey highlights the complexities of launching a new office tasked with implementing transformative initiatives. While it has made strides in aligning with some best practices and addressing earlier GAO recommendations, the road ahead requires focused efforts to establish robust frameworks for coordination, accountability, and workforce planning. By doing so, OCED can strengthen its foundation, enhance its effectiveness, and fulfill its critical role in shaping a sustainable energy future.
This blog post is for informational purposes only and does not guarantee accuracy or provide legal advice.