---
kind: "section"
citation: "42 U.S.C. § 18861"
title: "42"
title_heading: "The Public Health and Welfare"
number: "18861"
heading: "Office of Clean Energy Demonstrations"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/18861"
units:
  - "Chapter 162 — Energy Infrastructure"
  - "Subchapter VII — Miscellaneous"
---

# §18861. Office of Clean Energy Demonstrations

- (a) **Definitions—** In this section:
  - (1) **Covered project—** The term “covered [project](/usc/42/13641.md?p=2)” means a demonstration [project](/usc/42/13641.md?p=2) of the [Department](/usc/42/18701.md?p=1) that—
    - (A) receives or is eligible to receive funding from the [Secretary](/usc/42/18701.md?p=3); and
    - (B) is authorized under—
      - (i) this division; or
      - (ii) the Energy Act of 2020 (Public Law 116–260; 134 Stat. 1182).[^1]
  - (2) **Program—** The term “[program](/usc/42/18791.md?p=2)” means the [program](/usc/42/18791.md?p=2) established under [subsection (b)](#b).
- (b) **Establishment—** The [Secretary](/usc/42/18701.md?p=3), in coordination with the heads of relevant [program](/usc/42/18791.md?p=2) offices of the [Department](/usc/42/18701.md?p=1), including the Office of Technology Transitions, the Loan [Program](/usc/42/18791.md?p=2) Office, and all applied [program](/usc/42/18791.md?p=2) offices, shall establish a [program](/usc/42/18791.md?p=2) to conduct [project](/usc/42/13641.md?p=2) management and oversight of covered [projects](/usc/42/13641.md?p=2), including by—
  - (1) conducting evaluations of proposals for covered [projects](/usc/42/13641.md?p=2) before the selection of a covered [project](/usc/42/13641.md?p=2) for funding;
  - (2) conducting independent oversight of the execution of a covered [project](/usc/42/13641.md?p=2) after funding has been awarded for that covered [project](/usc/42/13641.md?p=2); and
  - (3) ensuring a balanced portfolio of investments in covered [projects](/usc/42/13641.md?p=2).
- (c) **Duties—** The [Secretary](/usc/42/18701.md?p=3) shall appoint a head of the [program](/usc/42/18791.md?p=2) who shall, in coordination with the heads of relevant [program](/usc/42/18791.md?p=2) offices of the [Department](/usc/42/18701.md?p=1)—
  - (1) evaluate proposals for covered [projects](/usc/42/13641.md?p=2), including scope, technical specifications, maturity of design, funding profile, estimated costs, proposed schedule, proposed technical and financial milestones, and potential for commercial success based on economic and policy projections;
  - (2) develop independent cost estimates for a proposal for a covered [project](/usc/42/13641.md?p=2), if appropriate;
  - (3) recommend to the head of a [program](/usc/42/18791.md?p=2) office of the [Department](/usc/42/18701.md?p=1), as appropriate, whether to fund a proposal for a covered [project](/usc/42/13641.md?p=2);
  - (4) oversee the execution of covered [projects](/usc/42/13641.md?p=2) that receive funding from the [Secretary](/usc/42/18701.md?p=3), including reconciling estimated costs as compared to actual costs;
  - (5) conduct reviews of ongoing covered [projects](/usc/42/13641.md?p=2), including—
    - (A) evaluating the progress of a covered [project](/usc/42/13641.md?p=2) based on the proposed schedule and technical and financial milestones; and
    - (B) providing the evaluations under [subparagraph (A)](#c-5-A) to the [Secretary](/usc/42/18701.md?p=3); and
  - (6) assess the lessons learned in overseeing covered [projects](/usc/42/13641.md?p=2) and implement improvements in the process of evaluating and overseeing covered [projects](/usc/42/13641.md?p=2).
- (d) **Employees—** To carry out the [program](/usc/42/18791.md?p=2), the [Secretary](/usc/42/18701.md?p=3) may hire appropriate personnel, including by using the authorities in [section 19321 of this title](/usc/42/19321.md), to perform the duties of the [program](/usc/42/18791.md?p=2).
- (e) **Additional authority—** The [Secretary](/usc/42/18701.md?p=3) may solicit, select, and manage covered [projects](/usc/42/13641.md?p=2) directly through the [program](/usc/42/18791.md?p=2).
- (f) **Project termination—** Should an ongoing covered [project](/usc/42/13641.md?p=2) receive an unfavorable review under [subsection (c)(5)](#c-5), the [Secretary](/usc/42/18701.md?p=3) or their designee may cease funding the covered [project](/usc/42/13641.md?p=2) and reallocate the remaining funds to new or existing covered [projects](/usc/42/13641.md?p=2) carried out by that [program](/usc/42/18791.md?p=2) office.
- (g) **Coordination—** In carrying out the [program](/usc/42/18791.md?p=2), the head of the [program](/usc/42/18791.md?p=2) shall coordinate with—
  - (1) [project](/usc/42/13641.md?p=2) management and acquisition management entities with the [Department](/usc/42/18701.md?p=1), including the Office of [Project](/usc/42/13641.md?p=2) Management; and
  - (2) professional organizations in [project](/usc/42/13641.md?p=2) management, [construction](/usc/42/300s–3.md?p=7), cost estimation, and other relevant fields.
- (h) **Reports—**
  - (1) **Report by Secretary—** In accordance with [section 16391a of this title](/usc/42/16391a.md), the [Secretary](/usc/42/18701.md?p=3) shall include in each updated technology transfer execution plan submitted under subsection (h)(2) of [section 16391 of this title](/usc/42/16391.md) information on the implementation of and progress made under the [program](/usc/42/18791.md?p=2), including, for the year covered by the report—
    - (A) the covered [projects](/usc/42/13641.md?p=2) under the purview of the [program](/usc/42/18791.md?p=2); and
    - (B) the review of each covered [project](/usc/42/13641.md?p=2) carried out under [subsection (c)(5)](#c-5).
  - (2) **Report by Comptroller General—** Not later than 3 years after November 15, 2021, the Comptroller General of the United States shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Science, Space, and Technology of the House of Representatives a report evaluating the operation of the [program](/usc/42/18791.md?p=2), including—
    - (A) a description of the processes and procedures used by the [program](/usc/42/18791.md?p=2) to evaluate proposals of covered [projects](/usc/42/13641.md?p=2) and the oversight of covered [projects](/usc/42/13641.md?p=2); and
    - (B) any recommended changes in the [program](/usc/42/18791.md?p=2), including changes to—
      - (i) the processes and procedures described in [subparagraph (A)](#h-2-A); and
      - (ii) the structure of the [program](/usc/42/18791.md?p=2), for the purpose of better carrying out the [program](/usc/42/18791.md?p=2).
- (i) **Omitted—**

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Pub. L. 117–58, div. D, title XII, § 41201, Nov. 15, 2021, 135 Stat. 1130; Pub. L. 117–167, div. B, title VI, § 10723, Aug. 9, 2022, 136 Stat. 1709.)

## Notes

### Editorial Notes

### References in Text

This division, referred to in subsec. (a)(1)(B)(i), is div. D of Pub. L. 117–58, Nov. 15, 2021, 135 Stat. 923, which enacted this chapter and enacted and amended numerous other sections and notes in the Code. For complete classification of div. D to the Code, see Tables.

The Energy Act of 2020, referred to in subsec. (a)(1)(B)(ii), is div. Z of Pub. L. 116–260, Dec. 27, 2020, 134 Stat. 2418. For complete classification of div. Z to the Code, see Short Title of 2020 Amendment note under section 17001 of this title and Tables.

### Codification

Section is comprised of section 41201 of div. D of Pub. L. 117–58. Subsec. (g) (now subsec. (i)) of section 41201 of div. D of Pub. L. 117–58 amended section 16391 of this title.

### Amendments

2022—Subsec. (b). Pub. L. 117–167, § 10723(1), inserted “including the Office of Technology Transitions, the Loan Program Office, and all applied program offices,” after “Department,” in introductory provisions.

Subsec. (d). Pub. L. 117–167, § 10723(2), inserted “, including by using the authorities in section 19321 of this title,” after “personnel”.

Subsecs. (e) to (i). Pub. L. 117–167, § 10723(3)–(5), added subsecs. (e) and (f), redesignated former subsecs. (e) to (g) as (g) to (i), respectively, and in introductory provisions of subsec. (h)(1), as redesignated, substituted “In accordance with section 16391a of this title, the Secretary” for “The Secretary”.

### Statutory Notes and Related Subsidiaries

### Wage Rate Requirements

For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of Pub. L. 117–58, including authority of Secretary of Labor, see section 18851 of this title.