Biden Administration Budget Stays Focused On Energy
The Biden administration released $11.9 billion budget on March 8, much of it directed toward climate and clean energy research. What’s the intended impact? The sizeable year-over-year injection of cash is meant to accelerate energy efficiency upgrades in commercial, industrial and residential energy.
It’s A Proposal, Not a Budget
The proposed 2024 fiscal budget totals $6.9 trillion and earmarks a substantial increase in DoE funding, approximately 8.7% compared to 2023’s actual budget. Two other departments the Environmental Protection Agency and Interior Department would receive 19.2% and 9.3% more, respectively.
…and a Bit of a Wishlist
The budget isn’t expected to live through the slicing and dicing of either body of Congress. The GOP skewered the proposal, signaling zero interest in negotiating on any components of the proposal. Republican party leaders released a statement after the proposed budget was announced, offering little in the way of bipartisanship.
Biden Administration Budget By the Numbers
The Department of Energy would see a 20% increase over it 2023 FY budget, with $8.8 billion of its $11.9 allotment focused on its Office of Science, which includes several energy-focused research programs.
A Sustained Pushed for Sustainability
While presidential budgets almost never see Congressional approval, they do serve as a reflection of the administration’s main goals. Biden’s 2024 numbers continue what has been considered the most ambitious climate presidency in history.
Biden didn’t carry momentum from the campaign into legislation. His signature Build Back Better build faltered in Congress. Revived with a new name and revisions, the Inflation Reduction Act passed in August 2022,
Some of the IRA’s core components and commitments have succeeded:
Made a national commitment to cut greenhouse gas emissions by 50% before 2030
Passed the Inflation Reduction Act of 2022
Targeted super pollutants HFCs (hydrofluorocarbons) and methane
Related: The Inflation Reduction Act Extends the Product Tax Credit
What’s Next?
Most politicos expect few of Biden’s budget components to survive the House of Representatives or Senate. Whatever budget passes will look very different from the administration’s wish list. What will be important for businesses to watch for is what Biden fights for the hardest; will it be clean energy financing or legislation? Carrot or stick?
Learn more about federal and state energy programs designed to make energy efficiency upgrades more affordable and accelerate ROI. We’re here to help; contact a Keen energy consultant today.