Formation and consolidation In 1942, during
World War II, the United States started the
Manhattan Project to develop the
atomic bomb under the
U.S. Army Corps of Engineers. After the war, in 1946, the
Atomic Energy Commission (AEC) was created to control the future of the project. The
Atomic Energy Act of 1946 also created the framework for the first
National Laboratories. Among other nuclear projects, the AEC produced fabricated uranium fuel cores at locations such as
Fernald Feed Materials Production Center in
Cincinnati, Ohio. The
Energy Reorganization Act of 1974 split the responsibilities of the AEC into the new
Nuclear Regulatory Commission, which was charged with regulating the nuclear power industry, and the
Energy Research and Development Administration, which was assigned to manage the nuclear weapon, naval reactor, and energy development programs. The
1973 oil crisis called attention to the need to consolidate energy policy. In 1977, President
Jimmy Carter signed into law the
Department of Energy Organization Act, which established the Department of Energy. The new agency, which began operations on October 1, 1977, consolidated the
Federal Energy Administration, the
Energy Research and Development Administration, the
Federal Power Commission, and programs of various other agencies. Former Secretary of Defense
James Schlesinger, who served under Presidents Nixon and Ford during the
Vietnam War, was appointed as the first secretary. President
Jimmy Carter proposed the Department of Energy with the goal of promoting energy conservation and energy independence, and developing alternative sources of energy to reduce the use of
fossil fuels. With international energy's future uncertain for America, Carter acted quickly to have the department come into action the first year of his presidency. This was an extremely important issue of the time as the oil crisis was causing shortages and
inflation. With the
Three Mile Island accident, Carter was able to intervene with the help of the department. Through the DOE, Carter was able to make changes within the
Nuclear Regulatory Commission, including improving management and procedures, since nuclear energy and weapons are responsibilities of the department.
Weapon plans stolen In December 1999, the
Federal Bureau of Investigation began investigating how China acquired plans for a specific nuclear device.
Wen Ho Lee, a scientist at
Los Alamos National Laboratory, was accused of passing nuclear secrets to the Chinese government. Before any formal charges, federal officials, including Energy Secretary
Bill Richardson, publicly identified Lee as a suspect. The U.S. Congress held hearings on the DOE’s handling of the case, with some senators proposing that nuclear security be managed by an independent agency. Of the 59 charges brought against Lee, all but one were later dropped after investigators concluded the leaked plans could not have come from him. Lee later received a $1.6 million settlement from the federal government and several news organizations. In the wake of the scandal and allegations that direct management by the Department of Energy had resulted in U.S. nuclear secrets being leaked to China, the
National Nuclear Security Administration was proposed. Originally proposed to be independent, NNSA was instead chartered as a semiautonomous agency within the Department of Energy to be headed by an administrator reporting to the secretary of energy.
Loan guarantee program of 2005 In 2001,
American Solar Challenge was sponsored by the DOE and the
National Renewable Energy Laboratory. After the 2005 race, the DOE discontinued its sponsorship. Title XVII of
Energy Policy Act of 2005 authorizes the DOE to issue loan guarantees to eligible projects that "avoid, reduce, or sequester air pollutants or anthropogenic emissions of
greenhouse gases" and "employ new or significantly improved technologies as compared to technologies in service in the United States at the time the guarantee is issued". In loan guarantees, a conditional commitment requires to meet an equity commitment, as well as other conditions, before the loan guarantee is completed. In September 2008, the DOE, the
Nuclear Threat Initiative (NTI), the
Institute of Nuclear Materials Management (INMM), and the
International Atomic Energy Agency (IAEA) partnered to develop and launch the
World Institute for Nuclear Security (WINS), an international
non-governmental organization designed to provide a forum to share best practices in strengthening the security and safety of
nuclear and
radioactive materials and facilities. In December 2024, the Loan Programs Office announced it would extend the largest loan ever sanctioned – a $15 billion (US) low-interest loan to support the modernization of
Pacific Gas & Electric’s hydroelectric power structure, enhance transmission lines critical for renewable energy integration, data center operations, and the growing fleet of electric vehicles. Initially requested as a $30 billion (US) loan, the amount was reduced due to concerns over the company’s repayment capacity.
Genesis Mission and AI partnerships (2025) In November 2025, President Donald Trump signed an executive order launching the
Genesis Mission, an initiative involving the Department of Energy and U.S. national laboratories to apply artificial intelligence and advanced computing to accelerate scientific research and support energy and national security-related capabilities. On December 18, 2025, the Department of Energy announced collaboration agreements with 24 organizations to support the initiative. == Organization ==