United States President Barack Obama proposed a budget of $29.5 billion for the Department of Energy in fiscal year 2012 with a view to boosting the country’s energy efficiency and renewable energy leadership.
“The United States faces a choice today: will we lead in innovation and out-compete the rest of the world or will we fall behind?” said Steven Chu, United States energy secretary.
“To lead the world in clean energy, we must act now. Through our investments, we are laying the groundwork for the nation’s future prosperity and security,” he said.
The President’s budget request is faithful to the goal of making 80 percent of United States energy generation come from clean sources by 2035.
For energy efficiency and renewable energy programs, the budget allocated $3.2 billion, which comes with broad support for specific programs specially in supporting technological advances in renewable energy.
The budget request includes:
• $300 million in credit subsidies to promote renewable energy and efficiency projects and back up about $3 billion to $4 billion worth of projects
• $550 million for the Advanced Research Projects Agency-Energy to support projects that could potentially deliver breakthrough clean energy technologies
• $146 million on three existing Energy Innovation Hubs and three additional hubs to be built to develop batteries and energy storage and smart grid technologies and systems
• $100 million for 46 Energy Frontier Research Centers that started operations in 2009
Budget cuts
Meanwhile, as with previous years, the department’s Office of Energy Efficiency and Renewable Energy will cut funding for the department’s hydrogen technology program, by over 40 percent or about $70 million.
At the same time, it contracted budget for the Fossil Energy Office by 45 percent or $418 million, which would zero out the programs for fuels, fuel cells, oil and gas research and development and unconventional fossil technology.
The department will also repeal subsidies and tax preferences for fossil fuels, which would reportedly save taxpayers about $3.6 billion.
“While we are investing in areas that are critical to our future, we are also rooting out programs that aren’t needed and making hard choices to tighten our belt. Additionally, we are improving our management and operations so we function more efficiently and effectively,” said Mr. Chu.
On the other hand, a total of $36 billion in loan guarantee authority will be set aside for the local nuclear industry, including further research and development on advanced nuclear technologies.
This is expected to assist six to eight nuclear power projects, which in turn will enable the construction of nine to 13 new reactors.
The department said it was able to reduce the cost of its corporate management by 13 percent in the budget request, equivalent to $45 million in savings.
But Republican Senator John Thune of South Dakota said Mr. Obama’s budget fails to curtail spending, while splurging $45.95 trillion and another $7.2 trillion toward the country’s debt in the next decade.
“President Obama’s budget spends too much, taxes too much and borrows too much,” said Mr. Thune, chairman of the Republican policy committee and member of the Senate budget Committee.
“For the sake of future generations, we cannot continue to ignore the looming fiscal crisis occurring in our nation. Instead of increasing spending, the president needs to work with Congress to find meaningful, bipartisan solutions to reduce dangerous national debt and ultimately grow our economy,” he said.
Congress is now tasked to consider President Obama’s budget and finalize the budget resolution by April.
