Details of biofuel appropriations in DOE FY2012 budget request

Biorefining Magazine
By Erin Voegele February 16, 2011

Secretary of Energy Steven Chu detailed President Obama’s $29.5 billion Fiscal Year 2012 budget request for the U.S. DOE this week. The request is part of an administration-wide plan to win the future by out-innovating, out-educating and out-building the rest of the world. “This budget is about winning the future,” Chu said, noting that the energy sector is going to play a key role in the future economic prosperity of countries around the world, including the U.S. “The Department of Energy’s FY2012 budget request is really about making those strategic investments to unleash American innovation and promote economic competitiveness,” Chu continued.

The total $29.5 billion request represents a $3.1 billion increase over the FY2010 budget of $26.4 million. However, tough funding choices have been made by the DOE, with cuts in several program areas. “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,” Chu said. “Additionally, we are improving our management and operations so we function more efficiently and effectively.”

The budget specifically calls for increased spending in the areas of clean energy and efficiency, while drastically reducing spending on many fossil energy programs. For example, the total budget for the Fossil Energy Office has been reduced by 45 percent—or $418 million. According to the DOE, this includes zeroing out several programs, including the Oil and Gas Research and Development Program and the Unconventional Fossil Technology Program. The budget also proposes to reel in subsidies and tax preferences for fossil fuels, saving taxpayers approximately $2.6 billion.

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