Climate Change: Improvements Needed to Clarify National Priorities and Better Align Them with Federal Funding Decisions
Highlights
Climate change poses risks to many environmental and economic systems, including agriculture, infrastructure, and ecosystems. Federal law has periodically required the Office of Management and Budget (OMB) to report on federal climate change funding. GAO was asked to examine (1) federal funding for climate change activities and how these activities are organized; (2) the extent to which methods for defining and reporting climate change funding are interpreted consistently across the federal government; (3) federal climate change strategic priorities, and the extent to which funding is aligned with these priorities; and (4) what options, if any, are available to better align federal climate change funding with strategic priorities. GAO analyzed OMB funding reports and responses to a Web-based questionnaire sent to federal officials, reviewed available literature, and interviewed stakeholders.
Funding for climate change activities reported by OMB increased from $4.6 billion in 2003 to $8.8 billion in 2010, and is organized in a complex, crosscutting system. OMB reports funding in four categories: technology to reduce emissions, science to better understand climate change, international assistance for developing countries, and wildlife adaptation to respond to actual or expected changes. Over this period, technology funding, the largest category, increased from $2.56 billion to $5.5 billion and increased as a share of total funding. OMB also reported $26.1 billion as funding for climate change programs and activities in the American Recovery and Reinvestment Act of 2009, and tax expenditures to encourage emissions reductions, with $7.2 billion in federal revenue losses in 2010. Many federal entities manage related activities, including interagency programs that coordinate agency actions. Questionnaire responses suggest that methods for defining and reporting climate change funding are not interpreted consistently across the federal government. Respondents identified three methods for defining and reporting climate change funding, foremost of which is guidance contained in OMB Circular A-11. While most said their own organization consistently applied these methods internally, far fewer said that they were applied consistently across the government. Some, for example, noted that other agencies use their own interpretation of definitions, resulting in inconsistent accounting across the government, because of several factors, such as the difficulty in distinguishing between programs related and unrelated to climate change. Respondents, literature, and stakeholders identified two key factors that complicate efforts to align funding with priorities. First, notwithstanding existing coordinating mechanisms, questionnaire results indicated that federal officials do not have a shared understanding of strategic priorities. This is in part due to inconsistent messages articulated in strategic plans and other policy documents. A 2008 Congressional Research Service analysis had similarly found no "overarching policy goal for climate change that guides the programs funded or the priorities among programs." Second, respondents indicated that since mechanisms for aligning funding with priorities are nonbinding, they are limited when in conflict with agencies' own priorities. Questionnaire respondents also identified options to better align funding with strategic priorities. Such options included (1) a governmentwide strategic planning process that promotes a shared understanding among agencies of strategic priorities by articulating what they are expected to do within the overall federal response to climate change and (2) an integrated budget review process that better aligns these priorities with funding decisions through a more consistent method of reporting and reviewing climate change funding. Federal entities are beginning to implement some of these options. However, without further improvement in how federal climate change funding is defined and reported, strategic priorities are set, and funding is aligned with priorities, it will be difficult for the public and Congress to fully understand how climate change funds are accounted for and how they are spent. Among GAO's recommendations are that the appropriate entities within the Executive Office of the President (EOP), in consultation with Congress, clearly establish federal strategic climate change priorities and assess the effectiveness of current practices for defining and reporting related funding. Relevant EOP entities did not provide official written comments, but instead provided technical comments, which GAO incorporated as appropriate.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Office of Science and Technology Policy | To improve the coordination and effectiveness of federal climate change programs and activities, the appropriate entities within the Executive Office of the President, including the Council on Environmental Quality, Office of Energy and Climate Change Policy, Office and Management and Budget, and Office of Science and Technology Policy, in consultation with Congress, should work together with relevant federal agencies and interagency coordinating bodies to clearly establish federal strategic climate change priorities, including the roles and responsibilities of the key federal entities, taking into consideration the full range of activities within the federal climate change enterprise. |
Closed – Not Implemented
According to GAO's 2015 high-risk update, the federal government has recently initiated many climate-related strategic planning activities. Specifically, the President's June 2013 Climate Action Plan and November 2013 Executive Order 13653 on Preparing the United States for the Impacts of Climate Change show how federal agencies have made some progress on better organizing across agencies, within agencies, and among different levels of government. In response to this executive order, agencies created climate change adaptation plans that outline steps they will take to, for example, factor resilience to the effects of climate change into grant-making and investment decisions, and into the design and construction of new and existing agency facilities and infrastructure. Agencies completed their first adaptation plans in 2012 and updated the plans in October 2014. These and other federal efforts identify climate change as a priority and demonstrate commitment and top leadership support. While agencies have begun to take specific actions, most have yet to implement aspects of these plans or sustained momentum over time. It is also unclear how the various planning efforts relate to each other or what they amount to as a government-wide approach for reducing federal fiscal exposures. Further, existing strategic planning efforts generally do not address the roles, responsibilities, and working relationships among federal, state, and local entities; identify how such efforts will be funded and staffed over time; or establish mechanisms to track and monitor progress. Hence, the federal government cannot demonstrate progress in implementing corrective measures.
|
| Council on Environmental Quality | To improve the coordination and effectiveness of federal climate change programs and activities, the appropriate entities within the Executive Office of the President, including the Council on Environmental Quality, Office of Energy and Climate Change Policy, Office and Management and Budget, and Office of Science and Technology Policy, in consultation with Congress, should work together with relevant federal agencies and interagency coordinating bodies to clearly establish federal strategic climate change priorities, including the roles and responsibilities of the key federal entities, taking into consideration the full range of activities within the federal climate change enterprise. |
Closed – Not Implemented
According to GAO's 2015 high-risk update, the federal government has recently initiated many climate-related strategic planning activities. Specifically, the President's June 2013 Climate Action Plan and November 2013 Executive Order 13653 on Preparing the United States for the Impacts of Climate Change show how federal agencies have made some progress on better organizing across agencies, within agencies, and among different levels of government. In response to this executive order, agencies created climate change adaptation plans that outline steps they will take to, for example, factor resilience to the effects of climate change into grant-making and investment decisions, and into the design and construction of new and existing agency facilities and infrastructure. Agencies completed their first adaptation plans in 2012 and updated the plans in October 2014. These and other federal efforts identify climate change as a priority and demonstrate commitment and top leadership support. While agencies have begun to take specific actions, most have yet to implement aspects of these plans or sustained momentum over time. It is also unclear how the various planning efforts relate to each other or what they amount to as a government-wide approach for reducing federal fiscal exposures. Further, existing strategic planning efforts generally do not address the roles, responsibilities, and working relationships among federal, state, and local entities; identify how such efforts will be funded and staffed over time; or establish mechanisms to track and monitor progress. Hence, the federal government cannot demonstrate progress in implementing corrective measures.
|
| Office of Management and Budget | To improve the coordination and effectiveness of federal climate change programs and activities, the appropriate entities within the Executive Office of the President, including the Council on Environmental Quality, Office of Energy and Climate Change Policy, Office and Management and Budget, and Office of Science and Technology Policy, in consultation with Congress, should work together with relevant federal agencies and interagency coordinating bodies to clearly establish federal strategic climate change priorities, including the roles and responsibilities of the key federal entities, taking into consideration the full range of activities within the federal climate change enterprise. |
Closed – Not Implemented
According to GAO's 2015 high-risk update, the federal government has recently initiated many climate-related strategic planning activities. Specifically, the President's June 2013 Climate Action Plan and November 2013 Executive Order 13653 on Preparing the United States for the Impacts of Climate Change show how federal agencies have made some progress on better organizing across agencies, within agencies, and among different levels of government. In response to this executive order, agencies created climate change adaptation plans that outline steps they will take to, for example, factor resilience to the effects of climate change into grant-making and investment decisions, and into the design and construction of new and existing agency facilities and infrastructure. Agencies completed their first adaptation plans in 2012 and updated the plans in October 2014. These and other federal efforts identify climate change as a priority and demonstrate commitment and top leadership support. While agencies have begun to take specific actions, most have yet to implement aspects of these plans or sustained momentum over time. It is also unclear how the various planning efforts relate to each other or what they amount to as a government-wide approach for reducing federal fiscal exposures. Further, existing strategic planning efforts generally do not address the roles, responsibilities, and working relationships among federal, state, and local entities; identify how such efforts will be funded and staffed over time; or establish mechanisms to track and monitor progress. Hence, the federal government cannot demonstrate progress in implementing corrective measures.
|
| Council on Environmental Quality | To improve the coordination and effectiveness of federal climate change programs and activities, we recommend that the appropriate entities within the Executive Office of the President, including the Council on Environmental Quality, Office of Energy and Climate Change Policy, Office and Management and Budget, and Office of Science and Technology Policy, in consultation with Congress, should work together with relevant federal agencies and interagency coordinating bodies to assess the effectiveness of current practices for defining and reporting federal climate change funding and aligning funding with priorities, and make improvements to such practices as needed for Congress and the public to fully understand how climate change funds are spent. |
Closed – Not Implemented
The Office of Management and Budget (OMB) periodically reports climate change funding to Congress, but has yet to publicly make improvements to its reporting practices. For example, a 2013 report by the Congressional Research Service--analyzing the most recent publicly available climate change funding data--noted that OMB and agency sources may report inconsistent or incomplete data and that information is not available for all programs for all years (Federal Climate Change Funding from FY2008 to FY2014; September 13, 2013).
|
| Office of Energy and Climate Change Policy | To improve the coordination and effectiveness of federal climate change programs and activities, we recommend that the appropriate entities within the Executive Office of the President, including the Council on Environmental Quality, Office of Energy and Climate Change Policy, Office and Management and Budget, and Office of Science and Technology Policy, in consultation with Congress, should work together with relevant federal agencies and interagency coordinating bodies to assess the effectiveness of current practices for defining and reporting federal climate change funding and aligning funding with priorities, and make improvements to such practices as needed for Congress and the public to fully understand how climate change funds are spent. |
Closed – Not Implemented
According to GAO's 2015 high-risk update, the federal government has recently initiated many climate-related strategic planning activities. Specifically, the President's June 2013 Climate Action Plan and November 2013 Executive Order 13653 on Preparing the United States for the Impacts of Climate Change show how federal agencies have made some progress on better organizing across agencies, within agencies, and among different levels of government. In response to this executive order, agencies created climate change adaptation plans that outline steps they will take to, for example, factor resilience to the effects of climate change into grant-making and investment decisions, and into the design and construction of new and existing agency facilities and infrastructure. Agencies completed their first adaptation plans in 2012 and updated the plans in October 2014. These and other federal efforts identify climate change as a priority and demonstrate commitment and top leadership support. While agencies have begun to take specific actions, most have yet to implement aspects of these plans or sustained momentum over time. It is also unclear how the various planning efforts relate to each other or what they amount to as a government-wide approach for reducing federal fiscal exposures. Further, existing strategic planning efforts generally do not address the roles, responsibilities, and working relationships among federal, state, and local entities; identify how such efforts will be funded and staffed over time; or establish mechanisms to track and monitor progress. Hence, the federal government cannot demonstrate progress in implementing corrective measures.
|
| Office of Science and Technology Policy | To improve the coordination and effectiveness of federal climate change programs and activities, we recommend that the appropriate entities within the Executive Office of the President, including the Council on Environmental Quality, Office of Energy and Climate Change Policy, Office and Management and Budget, and Office of Science and Technology Policy, in consultation with Congress, should work together with relevant federal agencies and interagency coordinating bodies to assess the effectiveness of current practices for defining and reporting federal climate change funding and aligning funding with priorities, and make improvements to such practices as needed for Congress and the public to fully understand how climate change funds are spent. |
Closed – Not Implemented
The Office of Management and Budget (OMB) periodically reports climate change funding to Congress, but has yet to publicly make improvements to its reporting practices. For example, a 2013 report by the Congressional Research Service--analyzing the most recent publicly available climate change funding data--noted that OMB and agency sources may report inconsistent or incomplete data and that information is not available for all programs for all years (Federal Climate Change Funding from FY2008 to FY2014; September 13, 2013).
|
| Office of Management and Budget | To improve the coordination and effectiveness of federal climate change programs and activities, we recommend that the appropriate entities within the Executive Office of the President, including the Council on Environmental Quality, Office of Energy and Climate Change Policy, Office and Management and Budget, and Office of Science and Technology Policy, in consultation with Congress, should work together with relevant federal agencies and interagency coordinating bodies to assess the effectiveness of current practices for defining and reporting federal climate change funding and aligning funding with priorities, and make improvements to such practices as needed for Congress and the public to fully understand how climate change funds are spent. |
Closed – Not Implemented
The Office of Management and Budget (OMB) periodically reports climate change funding to Congress, but has yet to publicly make improvements to its reporting practices. For example, a 2013 report by the Congressional Research Service--analyzing the most recent publicly available climate change funding data--noted that OMB and agency sources may report inconsistent or incomplete data and that information is not available for all programs for all years (Federal Climate Change Funding from FY2008 to FY2014; September 13, 2013).
|
| Office of Energy and Climate Change Policy | To improve the coordination and effectiveness of federal climate change programs and activities, the appropriate entities within the Executive Office of the President, including the Council on Environmental Quality, Office of Energy and Climate Change Policy, Office and Management and Budget, and Office of Science and Technology Policy, in consultation with Congress, should work together with relevant federal agencies and interagency coordinating bodies to clearly establish federal strategic climate change priorities, including the roles and responsibilities of the key federal entities, taking into consideration the full range of activities within the federal climate change enterprise. |
Closed – Not Implemented
The Office of Management and Budget (OMB) periodically reports climate change funding to Congress, but has yet to publicly make improvements to its reporting practices. For example, a 2013 report by the Congressional Research Service--analyzing the most recent publicly available climate change funding data--noted that OMB and agency sources may report inconsistent or incomplete data and that information is not available for all programs for all years (Federal Climate Change Funding from FY2008 to FY2014; September 13, 2013).
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