Is Department of Energy Reorganization on the Horizon?

The Department of Energy (DOE) is among the latest round of agencies offering paid administrative leave in return for accepting voluntary layoffs.

Energy Secretary Chris Wright offered around 7,000 employees an opportunity to participate resignation program in effort to reduce the agency by 43%. They have until April 8 to decide, and as of April 4, about 1,200 employees had accepted.

The offer applies only to employees defined as non-essential in its Phase I Agency RIF and Reorganization Planning (ARRP) report and excludes previously fired probationary staff or employees in critical mission-essential roles in the following offices:

• Office of Cybersecurity, Energy Security and Emergency Response
• Office of Environment, Health, Safety and Security
• Office of Environmental Management
• Office of Intelligence and Counterintelligence
• National Nuclear Security Administration
• Bonneville Power Administration
• Southeastern Power Administration
• Southwestern Power Administration
• Western Area Power Administration

The agency also extended its hiring freeze beyond the April 30 deadline and placed more than 70 diversity, equity and inclusion staff on leave. Canceling or not renewing term positions and offering possible voluntary early retirement and voluntary separation incentive payments for about 1,640 eligible employees are also on the table.

Concurrently, the agency asked top level directors to provide comments on potential impacts of proposed changes to their offices including the possibility of either dismantling or consolidating the Office of Energy Efficiency and Renewable Energy into another office. This falls in line with Mr. Trump’s recent proposal to close the Office of Clean Energy Demonstration (OCED) and eliminate about $9B in funding awards for related projects. This would leave the office with about 35 employees and retain $10B for projects such as hydrogen hubs, nuclear reactors and industrial demonstration programs that could be transferred to other departments.

Other organizational details have not been released. However,  current executive orders, Secretary Wright’s order to “Unleash Golden Era of American Energy Dominance,” and the Heritage Foundation’s Mandate for Leadership: The Conservative Promise: Project 2025 Presidential Transition Project initiatives could inform possible restructuring.  

In the mandate’s chapter on the Department of Energy and Related Commissions, author Bernard L. McNamee recommends significant organizational reforms and policy changes. These include renaming the agency to the Department of Energy Security and Advanced Science (DESAS), eliminating seven offices, moving four and significantly revising the policies, scope and funding of ten others. McNamee also proposes revising the missions of the National Laboratories with three prioritizing energy security while the remaining 14 focus on basic research. McNamee also suggests transferring the technology demonstration and deployment functions to private sector responsibility.

 

While several of these recommendations have been included in executive actions, others have neither been announced nor implemented. Deltek/GovWin makes no claim that the Trump Administration will implement those recommendations. However, should the proposed organizational changes occur oversight for existing contracts will change, additional contract modifications and terminations, and changes to future budget appropriations will be necessary to implement them.

For more on the movements of the new administration, refer to GovWin’s First 100 Days Resource Center