Obama Unveils His Budget Plan for the US
DOE Requests $2.4 Billion for Renewable Energy, Efficiency in FY 2011
In his first State of the Union Address, President Obama outlined his vision for additional investments in clean energy, noting it as a priority for his administration. This week, the president announced his 2011 budget request, which included a five percent increase for the Department of Energy’s Office of Energy Efficiency and Renewable Energy, including programs such as solar, wind, geothermal, biomass, water power and hydrogen fuel cell technologies.

Additional funding for the Advanced Research Projects Agency - Energy (ARPA-E) totaling $300 million would be designed to spur innovation in the high-tech areas that America needs to address its energy challenges and strengthen its research and development potential.

These increases, coupled with advances in clean energy technology are aimed at steering the U.S. toward a low-carbon economy, less dependent on foreign oil. The link provides information on clean energy budget highlights from the Departments of Energy and Agriculture, and the Environmental Protection Agency.

Department of Energy
The President's FY 11 budget request for the Department of Energy's (DOE) Energy Efficiency and Renewable Energy (EE/RE) programs is $2.36 billion (approximately eight percent of the total DOE budget), an increase of $113 million (five percent above the FY 10 appropriations). Nuclear Energy programs received an increase of $42 million (five percent above FY 10 appropriations) and Electricity Delivery and Energy Reliability programs increased by $14 million (five percent above FY 10 appropriations). The budget request for fossil energy decreased by $191 million (20 percent below FY 10 appropriations), primarily through a $105 million cut (43 percent below FY 10 appropriations) in the Strategic Petroleum Reserve. The Advanced Research Projects Agency - Energy (ARPA-E) program was authorized in the America COMPETES Act of 2007 (P.L. 110-69), and is responsible for funding specific "high-risk, high-payoff, game-changing research and development projects to meet the nation's long-term energy challenges." The FY 11 budget includes a request of $300 million for this program, following its initial FY 09 funds of approximately $400 million.

Department of Agriculture
The President's FY 11 budget request includes $708 million for U.S. Department of Agriculture (USDA) farm energy programs ($666 million in mandatory funds and $42 million in additional discretionary funds), and requests more than $220 million in funds for Department of Energy biomass and bioenergy programs. Additional bioenergy-related funding is provided through the DOE's energy sciences program, which funds the ongoing Bioenergy Research Centers. Additional funding may be provided on a competitive basis through DOE's Energy Advanced Research Projects Agency and DOE's Innovative Technology Loan Guarantee Program.

Overall biomass energy funding levels (mandatory and discretionary) would increase less than two percent in FY 11 compared to the FY 10 regular appropriations. However, bioenergy programs also are receiving a significant infusion of additional funds ($777 million) in FY 10 through the American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-5). In addition, significant additional federal mandates and incentives for bioenergy production are provided through the Renewable Fuel Standard and in the tax code (various biofuel and biopower producer tax credits, investment tax credits, and fuel blender tax credits).

By far, most of the bioenergy funding in the administration's request would be dedicated to research, development, demonstration, and deployment of cellulosic and advanced biofuels. Relatively little would be allocated to developing and promoting advanced biomass heat, power, or combined heat and power applications - applications that offer the potential to achieve much higher energy conversion efficiencies from biomass and that could reduce overall greenhouse gas emissions more dramatically than when biomass is used only for power or transportation fuels.

Environmental Protection Agency
The President's FY 11 budget request for the Environmental Protection Agency (EPA) is $10 billion, a decrease of approximately $300 million (three percent decrease from FY 10 appropriations). EPA Administrator Lisa Jackson indicated that the slight cut in EPA funds for FY 11 are in response to the President's call to streamline agency operations through targeted program investments. The Greenhouse Gas (GHG) Reporting Registry increased 25 percent to $20.8 million, as EPA prepares to implement its GHG endangerment finding under the Clean Air Act. In addition, the President has requested $30 million in new funds to support developing and deploying the technical capacity to address GHGs, with $25 million of those funds in state grants. The popular Energy STAR program is slated to receive $55.5 million, an increase of $3 million from FY 10 appropriations.

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