In a move lauded by the U.S. solar industry, on February 13th, 2012 U.S. President Barack Obama sent to the nation's congress a proposed budget for fiscal year 2013 which includes an extension of the Section 1603 Treasury Grant Program (TGP).

The budget also provides USD 310 million for the U.S. Department of Energy's (DOE) SunShot Initiative, as part of a 3.2% increase to the DOE's budget. However, it is unknown how much of the proposed budget will survive the bitter partisan battles which have characterized the U.S. federal budget process over the last two years.

"America's solar industry appreciates President Obama's support for extending the 1603 Treasury Program," said SEIA President and CEO Rhone Resch.

"The 1603 program has helped leverage over $24 billion in private sector investment in for a wide range of clean energy projects, and extending the 1603 program will create an additional 37,000 jobs in the American solar industry in this year alone."

USD 2.3 billion for EERE

The Obama Administration notes that the budget includes more than USD 140 billion for research and development (R&D) overall, including USD 2.2 billion for advanced manufacturing R&D, increasing the level of investment in non-defense R&D by 5% from 2012 levels.

Additionally, the budget includes USD 2.3 billion for the DOE's Office of Energy Efficiency and Renewable Energy (EERE). These significant increases in clean energy programs and research funding are partially offset by the elimination of an estimated USD 4 billion in subsidies to fossil fuel producers.

The Obama Administration states that the proposals will support a goal of doubling the share of electricity from "clean energy sources" by 2035. However, it is important to note that the Obama Administration includes nuclear generation in its definition of "clean energy" technologies.

Budget includes cutting of defense spending, mass transit funding

Overall, the budget meets the goals of deficit reduction through cutting defense spending 5% from 2012 levels, as well as repealing Bush-era tax cuts for higher income brackets, while increasing funding for science and research.

The National Resources Defense Council (NRDC, Washington D.C., U.S.) also notes that the budget would allot USD 47 billion over six years in funding for high-speed and other passenger rail services.

Link to U.S. President Obama's Fiscal Year 2013 Budget: http://www.slideshare.net/whitehouse/the-presidents-budget-for-fiscal-year-2013

2012-02-14| Courtesy: U.S. Office of Management and Budget; Image Source: Whitehouse.gov | solarserver.com © Heindl Server GmbH

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