US House Republicans criticize DOE fiscal 2012 budget priorities

Washington (Platts)--3Mar2011/545 pm EST/2245 GMT

Opposition to the US Department of Energy's fiscal 2012 budget request grew louder Thursday, with Republicans on the House of Representatives committee that oversees DOE research spending Thursday blasting the Obama administration's fiscal 2012 budget request for wasting money at a time of economic turmoil.

"While I strongly support an 'all-of-the-above' approach to energy security, I'm concerned that this plan entails spending we can't afford and taxes and regulations that would raise the cost of energy and harm our economy," said Ralph Hall, a Texas Republican and the chairman of the House Science, Space and Technology Committee.

Energy Secretary Steven Chu defended his agency's fiscal 2012 budget request to the committee, which included steep hikes to the department's Office of Science, as well the Office of Energy Efficiency and Renewable Energy.

"To lead in the global clean-energy economy, we must mobilize American's innovation machine in order to bring technologies from the laboratory to the marketplace," Chu said. DOE "is on the front lines of this effort."

Despite cuts to most other federal agencies, President Barack Obama requested $29.5 billion for the agency in fiscal 2012, 12% above the $26.4 billion it received in fiscal 2010. President Barack Obama's federal budget request also included the elimination of billions of dollars in tax breaks for the petroleum industry.

But Democrats on the committee backed DOE's spending strategy.

"Our economic woes weren't caused by too much science," the senior Democrat on the committee, Representative Eddie Bernice Johnson, said. "At a time like this wee need to make the critical investments to bolster our research infrastructure and our future workforce, advancing our technological capabilities now, while sowing the seeds for the industries of the future.

Obama's budget increases for DOE is unlikely to be an easy sell in Congress, where Republicans and Democrats are currently battling over a stopgap spending measure for the rest of fiscal 2011 that would cut billions from DOE's current spending.

The cuts would mostly target the department's science, energy efficiency and renewable energy programs. In addition, Republicans on the House committee that oversees DOE's budget have said it is unlikely the department will see any increases.

Republicans swept into a majority in the House this year, but Democrats still contol the Senate.

While Democrats in the Senate Energy and Water Committee have supported the DOE request, Republicans on that panel have warned they would oppose increases, and senior Republicans on the Senate Budget Committee also have attacked DOE's strategy.

--Derek Sands, derek_sands@platts.com

To subscribe or visit go to:  http://www.platts.com