cient heating, lighting, refrigeration, industrial processes, and new multifuel propulsion engines or battery-driven automobiles. In the mid-1970s, several R&D laws¹ were passed specifically directed at electric vehicles and multifuel automotive propulsion engines. The oil embargo also led to the passage of regulatory, information, and financial incentive laws in that decade, including laws on automotive corporate average fuel economy (CAFE) standards, appliance labeling, tax credits for energy-efficient retrofit improvements in residential buildings, low-income weatherization grants, retrofit grants for schools and hospitals, programs for retrofit activities, and building energy performance standards for new buildings.² In 1987, Congress enacted the National Appliance Energy Conservation Act (P.L. 100–12), which provided for minimum efficiency standards for selected buildings equipment and appliances. The Energy Policy Act of 1992 (EPAct) (P.L. 102–486) provided additional authority and guidance for R&D programs on energy efficiency. For example, it provided a mandate for DOE to work with the largest users in the industrial sector to develop new energy-efficient technology. A review of the national energy plans of the 1970s and 1980s and the DOE strategic plans of the 1990s indicates that RD&D to improve energy efficiency was an integral part of energy strategy, although the emphasis and the focus changed as administrations changed.³

Table 3–1 shows DOE energy efficiency R&D budget data by year for FY 1978 to FY 2000 in constant 1999 dollars by sector. Figure 3–1 shows the allocation of funds by sector for FY 1978, FY 2000, and FY 1978 to 2000. As can be seen from the figure, the transportation sector always received the largest share of the budget (43 percent in 2000, cumulative 42 percent 1978 to 2000). In the early years (FY 1978) of the program, buildings received 40 percent of the funds and industry, 18 percent. In FY 2000, there was less of a difference, with buildings receiving 28 percent of the funds and industry, 29 percent. Over the total period for the programs, industry and buildings received about 26 and 32 percent of the funds, respectively. The focus of energy efficiency R&D shifted during the early 1980s to emphasize basic sciences and early technology development, resulting in less funding for technology and product development and (as seen in Table 3–1) a reduction in R&D dollars for energy-efficiency programs. In the 1990s, energy-efficiency R&D was broadened to include applied research, development, and demonstrations, which are in general limited to proof of concept.