President Barack Obama proposed on Monday increasing funds for renewable energy research by 2012 and also reducing subsidies for fossil fuels.
The Department of Energy has $29.5 available billion for the fiscal year 2012. About $8 billion would be invested in solar, wind and advanced batteries. “Whomever leads in the global, clean energy economy will also take the lead in creating high-paying, highly skilled jobs for its people,” the administration said about the budget.
Novel small-sized nuclear energy technologies, such as modular reactors, will also be funded $853 mln from this budget. To raise funds for clean energy, the White House asked the Congress to withdraw $3.6 billion in oil industry, coal and natural gas subsidies, a move that will lead to the loss of $46.2 billion by these industries over ten years.
Many Republicans are opposed cutting subsidies for fossil fuels, claiming that it would affect industries that offer jobs at a time when the economy is still fragile.
“Given the broad difference in priorities between House Republicans and the White House on energy issues, we believe that few of the proposed cuts and expansions … will become law,” Whitney Stanco, an energy policy analyst at MF Global, said in a research note.