Washington, D.C., February 15, 2011 — President Barack Obama proposed increasing funds for clean energy research and deployment in his 2012 budget by reducing subsidies for fossil fuels such as oil, gas and coal.
The budget provides the Department of Energy $29.5 billion for fiscal year 2012, up 4.2 percent from the proposed 2011 budget, and up 12 percent from the enacted 2010 budget. About $8 billion would support research in clean energy technologies such as wind, solar and advanced batteries.
The budget would also provide $853 million to support new nuclear energy technologies, such as small modular reactors.
The White House asked for $36 billion in federal loan guarantees to help finance the building of nuclear power plants, as it did last year. The loan program already has $18 billion in authority.
To help pay for the clean energy initiatives, the White House is asking Congress to repeal $3.6 billion in oil, natural gas and coal subsidies, a move that would total $46.2 billion over a decade. In addition, the budget cuts funding for oil and gas research and for hydrogen fuels programs.
The Obama budget cuts the 2012 EPA budget by about $1.3 billion or about 13 percent with reductions in a clean diesel program and in Great Lakes restoration projects.
The budget would double the number of energy innovation hubs to six to bring scientists to work on topics like rare earth elements, energy storage and batteries and development of smart grid technologies.