The Department of Energy unveiled a reorganization Thursday that rebrands key offices and relocates a 1970s renewable and efficiency office, the latest move by the Trump administration to boost fossil fuels, minerals and nuclear power.
The plan posted on DOE’s website no longer shows the Office of Energy Efficiency and Renewable Energy, the Office of Clean Energy Demonstrations, the Office of State and Community Energy Programs, the Office of Federal Energy Management Program and the grid deployment office. It was not immediately clear whether the work of those offices is changing or is being rebranded.
Energy Secretary Chris Wright hailed the changes as aligning DOE “to restore commonsense to energy policy, lower costs for American families and businesses, and ensure the responsible stewardship of taxpayer dollars.”
“These changes,” he said in a statement, “will help us better execute the DOE mission of delivering affordable, reliable and secure American energy for the American people.”
Under its new structure, DOE will be organized under the Offices of the Under Secretary of Energy, the Under Secretary for Science, and the Under Secretary for National Security and National Nuclear Security Administration (NNSA), respectively.
Previously, DOE had an Under Secretary for Infrastructure, NNSA and an Under Secretary for Science and Innovation, which housed the renewable, fossil, nuclear and electricity offices.
Other changes include the merger of the geothermal office with fossil energy to create the Hydrocarbons and Geothermal Energy Office, and the creation of the Office of Critical Minerals and Energy Innovation, or CMEI.
Gone is the Manufacturing and Energy Supply Chains Office, or MESC, which was created in 2022 with funding from the bipartisan infrastructure law.
Yet another change is the rebranding of the loan program office as the Office of Energy Dominance Financing, or EDF. The Advanced Projects Research Agency-Energy, which Trump sought to eliminate in his first term, remains intact under the plan.
Audrey Robertson, who leads DOE’s efficiency and renewables office, told staff in an email obtained by E&E News that the office is now part of the Office of Critical Minerals and Energy Innovation.
“With these changes, EERE will be combined with MESC, SCEP and FEMP along with the Minerals Sustainability Office from the Hydrocarbons and Geothermal Energy office,” Robertson wrote. “We will also be welcoming elements of [Office of Clean Energy Demonstrations] and [Grid Deployment Office] as those offices will be wound down.”
The changes reflect Trump administration priorities to boost critical minerals, fossil fuels, nuclear and technologies such as fusion, while shrinking support for renewables, electric vehicles and low-carbon power. They will overhaul how the federal government distributes money on everything from oil and gas to efficiency projects.
DOE has gone through reorganizations before, including in Trump’s first term.
But OCED was authorized by the infrastructure law and other offices have specified appropriations, which is likely to spur legal questions.
“The authority of Cabinet secretaries to move around major functions and offices is very limited, especially when those offices were established and funded through congressional action. Congress has put tight handcuffs on reorganizations, and plans typically require either congressional approval or the opportunity for congressional review,” said Donald Kettl, a professor emeritus at the University of Maryland School of Public Policy.
DOE did not immediately respond when asked about the chart or plans to reshuffle its operations.
Project cancellations, staff reductions
The changes will take place as DOE moves to cancel hundreds of awards for energy projects, raising the question of how the department will navigate disputes. In October, DOE announced roughly $7.5 billion in project cancellations, and Wright has signaled more cuts are coming this year.
DOE has also seen the loss of thousands of staffers in recent months, which has drained the agency of contracting, procurement, legal and technical staff. In the Office of Clean Energy Demonstrations — which funds major projects such as hydrogen hubs — the majority of staff took deferred resignations earlier this year.
The department’s staff are also facing possible layoffs, although two people familiar with the reorganization said reductions in force are not expected immediately.
Reesha Trznadel, DOE’s acting chief human capital officer, told a district court earlier this month that the department had notified 180 people that they may be reassigned, fired or transferred. DOE leadership has accused those divisions of “wasteful spending” and “regulatory overreach” under the Biden administration.
Kathleen Hogan, a former long-time senior executive service grade career employee who served across Democratic and Republican administrations, said reshuffling federal agencies is disruptive and takes time away from DOE’s ability to serve the country amid ongoing staff departures.
“Given the recent talent drain and other challenges, let’s hope for the sake of U.S. energy security, competitiveness, and the business certainty that this is a positive,” Hogan said.
A DOE staffer granted anonymity because they are not authorized to speak publicly about internal affairs said fatigue is setting in with yet another major announcement made without any explanation or interaction with DOE staff.
“Hard to see the logic of these rebrands beyond sending a message,” the staffer said.
But some DOE watchers saw an upside to the reorganization.
Abby Wulf, founder and CEO of Lattice Strategies, a Washington-based critical minerals consultancy, said the changes would be beneficial for the purposes of shoring up supply chains that China otherwise dominates.
“Elevating critical minerals to the secretary level is the right move and underscores just how important mineral materials are to every facet of energy generation,” Wulf said. “If you want to be energy dominant, you’ll need to be minerals dominant too.”