President�s Energy Budget Invests in Innovation, Clean Energy, and National Security Priorities
DOE also making tough budget choices and instituting
management reform efforts to save taxpayer money
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Secretary Steven Chu |
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Washington, D.C. � 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, emphasizing that it is part of an
Administration-wide plan to win the future by out-innovating,
out-educating and out-building the rest of the world. At the same time,
the FY 2012 makes tough choices, cutting programs and expenses to
underscore the Administration�s commitment to fiscal responsibility and
shared sacrifice.
�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? To lead
the world in clean energy, we must act now. We can�t afford not to.
Through our investments, we are laying the groundwork for the nation�s
future prosperity and security,� said Secretary Chu. �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.�
Specifically the President�s FY 2012 budget request for the
Department of Energy:
- Puts the nation on the path to reach a bold but achievable goal
of generating 80 percent of America�s electricity from clean sources
by 2035 as called for by the President.
- Supports groundbreaking basic science, research and innovation
to solve our energy challenges and ensure that the United States
remains at the forefront of science and technology.
- Leads in the development and deployment of clean and efficient
energy technologies to reduce our dependence on oil, accelerate the
transition to a clean energy economy and promote economic
competitiveness; and
- Strengthens national security by reducing nuclear dangers,
maintaining a safe, secure and effective nuclear deterrent and
cleaning up our Cold War nuclear legacy.
- Advances responsible environmental management by cleaning up
hazardous, radioactive legacy waste from the Manhattan Project and
the Cold War.
Some highlights in the FY 2012 budget include:
- $3.2 billion for energy efficiency and renewable energy
programs, because investing in clean energy will strengthen our
security, protect our planet, and create countless new jobs here at
home.
- Promoting renewable energy and energy efficient projects with
$300 million in credit subsidies to support approximately $3-4
billion in projects.
- $36 billion in loan guarantee authority to help jumpstart the
domestic nuclear industry, as well as additional investments in the
research and development of advanced nuclear technologies, including
small modular reactors. Combined with existing authority, the
additional loan guarantee authority will support 6 to 8 nuclear
power projects, which will result in the construction of anywhere
from 9 to 13 new reactors.
- To spur innovation, the President�s budget request invests in
basic and applied research and keeps us on the path to doubling
funding for key science agencies, including the Department�s Office
of Science.
- $5.4 billion for the Office of Science to expand our investment
in basic energy sciences, advanced scientific computing and
biological and environmental sciences � all key areas for our future
economic competitiveness.
- $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. Through the Hubs, we are bringing together our nation�s
top scientists and engineers to work over a longer time frame to
achieve a specific goal.
- $100 million to continue supporting 46 Energy Frontier Research
Centers started in 2009.
- A five-year FY 12 to FY 16 request of nearly $65 billion for the
National Nuclear Security Administration (NNSA) reflects the
President�s nuclear security priorities, as well as his commitment
to modernize the U.S. nuclear weapons enterprise and sustain a
strong nuclear deterrent for the duration of the New START Treaty
and beyond.
- To support the President�s goal of securing all vulnerable
nuclear material around the world in four years, the budget invests
$2.5 billion in the NNSA Defense Nuclear Nonproliferation program.
This is part of a five-year, $14.2 billion commitment for the
program.
In developing this budget, several program reductions and
terminations are proposed, further demonstrating the Obama
Administration�s commitment to fiscal responsibility. The Department
also continues to make progress on a management excellence agenda to
improve our operations.
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.
- In January, DOE decided that it would end operation of the
Tevatron, at the Fermi National Laboratory, rather than extend them
through FY 2014. It is projected this decision will save the
Department $35 million for FY 2012.
- 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.
In the FY 12 budget request, the Department was able to reduce the
cost of its corporate management by nearly 13 percent, cutting nearly
$45 million from its budget. Some of these spending reductions came
from:
- Office of the Secretary: 14 percent reduction;
- Office of the Chief Financial Officer: 16 percent reduction;
- Office of the Chief Information Officer: 17 percent reduction;
- Office of Human Capital Management: 22 percent reduction;
- Office of Public Affairs: 16 percent reduction
For more information about the Administration�s Fiscal Year 2012
budget proposal for the Department of Energy, please visit
energy.gov.
Editorial Date February 14, 2911
By Brad Bugger
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