This is an excerpt from EERE Network News, a weekly electronic newsletter.

February 04, 2004

President's Budget Retains Funds for Energy Efficiency, Renewable Energy

Photo of the Bush Cabinet.

The President's Cabinet received a budget briefing on February 2nd.
Credit: Eric Draper, White House

President Bush released his proposed federal budget for fiscal year (FY) 2005 on February 2nd. The proposed budget increases defense spending by 7 percent and homeland security spending by nearly 10 percent, while holding the growth in all other spending to 0.5 percent. In light of the tight fiscal constraints, DOE's Office of Energy Efficiency and Renewable Energy (EERE) fared well: the FY 2005 budget request for EERE is $1.25 billion, a $15.3-million increase over the comparable funding level in FY 2004, or about a 1.2 percent increase. That proposed budget increase includes a 4.8 percent increase in funding for the renewable energy programs, while holding energy efficiency funding essentially level (a 0.2 percent decrease). As noted in the EERE "Budget-in-Brief" for FY 2005, DOE allocates more funding for energy efficiency and renewable energy than it does for any other energy activity. See the White House budget briefing, a summary of the overall federal budget proposal, and the full budget proposal, all of which are posted on the White House Web site. EERE's "Budget-in-Brief"—a detailed examination of EERE's proposed budget for FY 2005—is available on the EERE Web site.

According to EERE's detailed budget justifications, by 2025 its programs could yield more than $100 billion in annual energy savings, a reduction of about 200 million metric tons in annual carbon emissions, a savings of about 2 million barrels of oil per day, and an annual reduction in natural gas consumption of more than 1.5 quadrillion Btus. The programs could also avoid the need for some 150,000 megawatts of new conventional power capacity, while increasing the flexibility and diversity of our electricity system and helping to avoid power shortages. See the budget justifications on the EERE Web site.

DOE is also working to assure that its taxpayer's dollars are well managed. Secretary of Energy Spencer Abraham noted last week that DOE was recently ranked first among cabinet-level agencies in implementing the President's Management Agenda (PMA), which aims to make agencies results-oriented organizations. The top ranking by the Office of Management and Budget reflects DOE's maximum use of human resources and efforts to integrate performance assessments into its budget requests, as well as its use of competitive outsourcing, E-Government, and improved financial management. See the DOE press release.