Presidentís Releases Budget for Energy Efficiency Programs
February 14, 2011

U.S. Secretary of Energy Steven Chu today detailed President Barack Obama’s $29.5 billion fiscal year 2012 budget request for the Department of Energy (DOE). The budget details funds that will be used to promote the energy efficiency goals that were part of the recently announced Better Buildings Initiative. Highlights in the FY 2012 budget include:

  • $3.2 billion for energy efficiency and renewable energy programs;
  • Promoting renewable energy and energy efficient projects with $300 million in credit subsidies to support $3-4 billion in projects;
  • $5.4 billion for the Office of Science to expand investment in basic energy sciences, advanced scientific computing and biological and environmental sciences;
  • $550 million for the Advanced Research Projects Agency-Energy (ARPA-E) to continue support for the promising early-stage research projects that could deliver game-changing clean energy technologies;
  • $146 million to support the three existing Energy Innovation Hubs and to establish three new Hubs in the areas of batteries and energy storage, smart grid technologies and systems and critical materials; and
  • $100 million to continue supporting 46 Energy Frontier Research Centers started in 2009.
In developing this budget, several program reductions and terminations are proposed. They include:
  • In the Office of Energy Efficiency and Renewable Energy, DOE reduced funding for the hydrogen technology program by more than 40 percent, or nearly $70 million in order to focus on technologies deployable at large-scale in the near term.
  • DOE has reduced the budget for the Fossil Energy Office by 45 percent, or $418 million. This includes zeroing out the Fuels Program, the Fuel Cells Program, the Oil and Gas Research and Development Program, and the Unconventional Fossil Technology Program.
  • The proposal to repeal a number of subsidies and tax preferences available for fossil fuels. Repeal of these subsidies and preferences will save the taxpayer approximately $3.6 billion in FY 2012.
  • The Department is reducing administrative expenses across all programs in the FY 2012 budget from FY 2010 levels.

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