The Presidents Budget Request on Energy

The following items, FYI, are take directly from the Presidents budget request (slide 23 & 24):

The Advanced Energy Initiative (AEI):

The AEI is accelerating breakthroughs in how we power our homes, cars, and businesses and will help the U.S. to diversify its sources of energy, reduce dependency on oil and increase our energy security.

• Coal Research Initiative: $385 million to complete the President’s commitment to invest $2 billion over 10 years – three years ahead of schedule— to develop technologies to reduce air emissions while providing domestically secure, cost-efficient electricity from America’s huge coal reserve.

o FutureGen Project: $108 million towards construction of a nearly emissions-free coal plant that captures and stores carbon dioxide rather than releasing it into the atmosphere.

• Solar America Initiative: $148 million toward the goal of making solar technology cost competitive with conventional electricity by 2025.

• Biofuels Initiative: $179 million to research the production of cellulosic ethanol from corn and to make other organic materials available as a competitive energy alternative by 2012.

• Hydrogen Fuel Initiative: $309 million will complete the President’s five-year, $1.2 billion commitment to support the development of commercially viable hydrogen technologies and fuel cell vehicles by 2020.

• Nuclear Power 2010: $114 million—more than double the funding in the 2007 Budget—toward this $1.1 billion government/ private sector partnership to license new reactors and for private industry to obtain licenses for new designs that could result in new power plants ordered by 2009 and operating by 2014.

• Global Nuclear Energy Partnership: $395 million to continue strong support for engineering and design of advanced reactors and new nuclear waste recycling approaches with the potential to reduce the toxicity and volume of nuclear waste that requires disposal in a permanent repository. Solving the nuclear waste issue paves the way for expanding the safe use of nuclear power around the world and at home, promotes nuclear nonproliferation, and resolves nuclear waste disposal issues through an international framework.

• Advanced Battery Research: $42 million to accelerate research on advanced battery technologies for "plug-in" hybrid vehicles that can be recharged at night.

Accelerating deployment of advanced coal technology:

EPAct 2005 authorizes the allocation of $1.65 billion in tax credits to foster more than $9 billion in private investments to construct highly efficient and low emission coal power facilities. $1 billion in tax credits were awarded in 2006

Accelerating scientific progress through the American Competitiveness Initiative (ACI):

ACI is designed to support basic research and world-leading facilities in the physical sciences to enable future breakthroughs and provide economic security benefits.

• Department of Energy's Office of Science: $4.4 billion, to strengthen research and cutting edge facilities, such as new bio-energy research centers; increase contributions toward a major international fusion energy program; expand supercomputing facilities and related research; and support design and construction activities for world-leading light sources.

o $160 million for the United States’ contribution to the International Thermonuclear Experimental Reactor.

Renewable Energy Access also has a post on this subject, they have dug a little deeper in the budget than I have, so it may be worth a read.

Update 12:23 am Feb. 7, 2007: For those interested in more details for the DOE Energy Efficiency and Renewable Energy FY 2008 “Budget-in-Brief” and “Budget Request Presentation” they can be found at:
http://www.eere.energy.gov/ba/pdfs/FY08_budget_brief.pdf
http://www.eere.energy.gov/ba/pdfs/FY08_budget_request.pdf

The Senate Energy & Natural Resources Committee plans a full committee hearing
on the FY 2008 budget proposal for the Department of Energy in 7 February.

While this is a budget request, it is somewhat indicative what might be passed by congress. While I am a big supporter of biofuels, a greater amount for biofuels than solar is not warranted. What is needed is action on demonstration plants for cellulosic biofuels, which was included in last years appropriations (REA found that the amount of loan guarantees would be increased from $4 billion to $9 billion, which I assume includes amounts for IGCC and nuclear plants as well as cellulosic biofuels). Solar, along with wind which is developed to the point that it does not need government funding for research (REA says there is still $40 million in the budget), promises to be the major source of renewable energy in the future. Wave power should have some research at this point.

I support aid for the construction of the first few new generation nuclear plants, but much too much money is being requested for more research, except for the amount to be used to develop better waste disposal technologies. The amount for hydrogen research is also too high compared to what is being requested for biofuels and renewable energy.

Industry is doing pretty well on battery development, but to the extent that the government can help that effort, I don't have any problem with them getting involved.

The fact sheets do not give enough detail to know exactly where the money is going so it is hard to make specific comments or recommendations. That said, I would like to see money removed from the nuclear and hydrogen budgets and transferred to biofuels, solar and a wave research program. I don't see the biofuels amount being reduced, in fact funds should be added for a butanol program. Solar deserves more money than biofuels though. As long as the money is for research and building demonstration projects and not for continuing subsidies, the government has a role to play in providing money that private industry does not have the resources to provide.