The Bush administration recently released its detailed budget proposal for fiscal year 2002, which begins Oct. 1, 2001. Although the budget would expand tax credits for renewable energy, it would reduce funding for most renewable-energy and energy-efficiency research and development.
Proposed tax credits include creating a solar-energy investment tax credit that would be equal to 15 percent of the cost and installation of solar electric and hot water systems (excluding swimming pool heaters), and expanding the existing-production tax credit to include more biomass power facilities.
Proposed cuts include: a 25.9-percent reduction in renewable-energy research, development, and deployment; an 85.9-percent reduction in concentrating solar power research; and a roughly 48-percent reduction in research funding for geothermal energy, photovoltaic systems, solar building technologies, and wind-energy systems.
State energy program grants and energy-efficient power technologies are held at roughly level funding, but all other energy efficiency programs are cut by 31.2 percent overall. This includes programs for energy efficiency in transportation, buildings, and industry, as well as the Federal Energy Management Program, which aims to reduce federal energy use.
For more information, contact the US Department of Energy or the White House press office.
Based on a report by the Energy Department’s Energy Efficiency and Renewable Energy Network
