#23

270 Energy:Eliminate the Advanced Manufacturing Partnership

Savings in Millions of Dollars
  • 2016
    183
  • 2017
    184
  • 2018
    184
  • 2019
    186
  • 2020
    191
  • 2021
    195
  • 2022
    199
  • 2023
    204
  • 2024
    208
  • 2025
    212
  • 2016-2020
    928
  • 2016-2025
    1946

Sources

Savings are expressed as budget authority and were calculated by using the FY 2014 enacted spending levels as found on page 1 of U.S. Department of Energy, “Advanced Manufacturing Office FY 2015 Budget at-a-Glance,” March 2014. The FY 2014 enacted spending was increased at the same rate as discretionary spending for 2016–2025, according to the CBO’s most recent August 2014 baseline spending projections.

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Technical Notes on Scoring

CBO Baseline

Unless otherwise noted, calculations for savings for each recommendation relies on the most recent Congressional Budget Office baseline, as found in “An Update to the Budget and Economic Outlook: 2014 to 2024,” published August 27, 2014, has been used.

Savings “Totals”

While totals for the five and 10 year savings are provided by section and for the complete set of recommendations, there are two reasons they should not be viewed as representing total savings for The Budget Book.

First, as noted in the introduction, The Heritage Foundation would recommend that the savings realized in the Function 050 Defense section would stay within the Department of Defense to strengthen the nation’s defense capabilities.

Second, the numbers cannot be deemed to represent the realized savings if every single recommendation were adopted because policy changes made in one program can impact spending levels in other programs.  Thus, the numbers in the table do not reflect any potential interactions between the various policy changes affecting spending or savings.

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Heritage Recommendation:

Eliminate all Advanced Manufacturing spending. This proposal saves $183 million in 2016, and $1.9 billion over 10 years.

Rationale:

Invest in America’s manufacturing future, eliminate all advanced manufacturing.

Manufacturers already know that energy is a significant input cost and will innovate to find ways to lower costs and gain a competitive advantage. Companies will make these investments if they believe that the technology is promising, worth the risk, and the best use of their investment dollars. American manufacturers and industrial companies will flourish on their own with a good tax policy, immediate expensing of equipment, and increased energy development that would lower their input costs.

Invest in America’s manufacturing future, eliminate all advanced manufacturing.

Contributing Expert

Nicolas (Nick) Loris, an economist, focuses on energy, environmental and regulatory issues as the Herbert and Joyce Morgan fellow at The Heritage Foundation.

See publications by Nicolas Loris

Nicolas (Nick) LorisHerbert and Joyce Morgan Fellow

Heritage Experts

Jack Spencer oversees Heritage Foundation research on a wide range of domestic economic issues as director of the Roe Institute for Economic Policy Studies. Those topics include federal spending, taxes, energy and environment, regulation and retirement savings.

See publications by Jack Spencer

Jack SpencerVice President for the Institute for Economic Freedom and Opportunity

Katie Tubb is a Research Associate and Coordinator in the Thomas A. Roe Institute for Economic Policy Studies

See publications by Katie Tubb

Katie TubbResearch Associate and Coordinator

Additional Reading

*Note: Savings from this proposal are also included in proposal to eliminate the Office of Energy Efficiency and Renewable Energy (EERE).