BIOMASS HUB

Following up on his clean energy-heavy State of the Union Address last week, President Obama has released his Administration’s Fiscal Year 2011 budget, which includes healthy allowances for renewable energy development.

The budget extends tax credit subsidies and increases spending for biofuels, but provides zero assistance to DOE biomass programs.  The biggest story is the elimination of DOE tax subsidies for fossil fuel, which, according to the Wall Street Journal, includes axing about $39 billion in tax benefits to oil and coal companies over the next decade.  This year’s budget does not reflect income from cap-and-trade, indicating doubt on the part of the administration about the likelihood of cap-and-trade making it out of the Senate this year.

Biofuels Digest reports that the DOE requested $28.4 billion includes:

• $217 million in new funding for science research and discovery
• $40 million for the existing Energy Frontier Research Centers program
• $107 million for Energy Innovation Hubs
• $300 million for the Advanced Research Project Agency – Energy (ARPA-E)
• Lending authority to support approximately $40 billion in loan guarantees for innovative clean energy programs

The DOE also plans to use $50 million to build out a clean energy workforce and train future leaders in energy science and technology.