Scoop: DOE proposes shutting down clean energy office
Illustration: Brendan Lynch/Axios
The Energy Department is aiming to close the Office of Clean Energy Demonstrations and terminate nearly half its awarded funding, according to a presentation obtained by Axios.
Why it matters: The departmental presentation describes in detail how the agency plans to quickly carry out DOGE cuts in its $27 billion demonstrations office.
- Final decisions about reorganization and reductions in force could come as soon as next week, according to three people familiar with the situation who requested anonymity to discuss private discussions.
- The agency wants language in President Trump's FY26 budget request "explicitly shutting down OCED and realigning appropriations."
The big picture: The planned closure of the office comes as DOE mulls eliminating thousands of positions it considers "nonessential."
- A second document obtained by Axios on Friday shows just 9,004 of about 17,500 total DOE positions have been deemed essential and excluded from large-scale reductions in force.
- The AP first reported on the agency-wide cuts.
A DOE spokesperson said the agency is conducting a department-wide review to "ensure operations are best positioned to accomplish the DOE mission and align with the Trump administration's priorities."
- "No final decisions have been made and multiple plans are still being considered," the spokesperson said.
Context: OCED, created by the infrastructure law, oversees a portfolio that includes hydrogen, carbon capture, industrial decarbonization, advanced nuclear, energy storage and projects in rural and remote communities.
- Earlier administration moves prompted concern among some employees about the office's fate.
Zoom in: The document proposes OCED conduct a 90-day review to determine the status of about 100 awards worth $19 billion based on a 90-day review, it said.
- The agency would aim to keep about $10 billion in projects, which would be transferred to other DOE offices.
- The two advanced nuclear reactor demonstration projects would remain fully funded and transferred to the Office of Nuclear Energy under the plan.
- It recommends terminating or rescoping a total of $9 billion, which could be used to reissue awards, budget offsets, or deficit reduction.
"Goal: Terminate as many awards as possible using range of options consistent with legal authorities," the document states.
- Awards could be renegotiated "in rare cases" with other department offices serving as the lead, the document said.
Editor's note: This story has been updated with additional reporting.
