Obama's Budget Cuts Fossil Fuels Subsidies and Aims to Double American Energy Production by 2030
Photo Credit: The White House
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WASHINGTON, DC, April 10, 2013 (ENS) – President Barack Obama today introduced his Fiscal Year 2014 budget, which sets two new goals – to cut U.S. net oil imports in half by 2020 and to double American energy productivity by 2030.
The budget for the fiscal year that begins October 1 would cancel the automatic spending cuts known as the sequester and raise about $1 trillion in new tax revenue over 10 years.
The $1.058 trillion budget would increase spending in FY2014 by $160 billion over the current budget. It would mean a $744 billion budget deficit in spite of new entitlement cuts and tax hikes.
Speaking in the Rose Garden at the White House, Obama called the FY2014 budget, “a fiscally responsible blueprint for middle-class jobs and growth.”
Obama pointed out that during his first term he signed into law $2.5 trillion in deficit reductions, two-thirds of that coming from spending cuts. The budget he presented today would further reduce the deficit over 10 years by more than $1.8 trillion.“For years, the debate in this town has raged between reducing our deficits at all costs, and making the investments necessary to grow our economy,” Obama said. “And this budget answers that argument, because we can do both. We can grow our economy and shrink our deficits. In fact, as we saw in the 1990s, nothing shrinks deficits faster than a growing economy. That’s been my goal since I took office. And that should be our goal going forward.”
“We’ll continue our march towards energy independence and address the threat of climate change,” the President said.
New Goal: Double American Energy Productivity by 2030
The President has set a new goal to cut in half the energy wasted by America’s homes and businesses, with action aimed at doubling the economic output per unit of energy consumed in the United States by 2030, relative to 2010 levels.
New Goal: to Cut U.S. Net Oil Imports in Half by 2020
Increased production of domestic oil and biofuels, and improvements in the fuel efficiency of U.S. cars and trucks, allowed the United States to cut imports of oil by almost one-third since 2008. To build on this progress, the President will propose new policies and investments to cut imports of foreign oil in half by the end of the decade, relative to 2008 levels.
Clean Energy Research and Development Investments
To keep the United States on the forefront of clean energy production and deployment, the FY2014 budget increases funding for the Department of Energy’s clean energy technology activities by more than 40 percent above the 2012 enacted level, to $6.2 billion.
It increases funding for clean energy technology across all agencies by 30 percent, to $7.9 billion.
These budget increases are intended to support the cost-competitiveness and deployment of renewable power, electric vehicles, next-generation biofuels, advanced energy-efficient manufacturing, and energy efficiency in homes and commercial buildings.
Permanent Tax Incentive for Renewable Energy Production
The budget includes $23 billion of incentives for renewable energy production and energy efficiency over the next 10 years.
To provide a strong, consistent incentive to encourage investments in renewable energy technologies and to help meet our goal to double generation from wind, solar, and geothermal sources by 2020, the budget would make permanent the tax credit for the production of renewable electricity.
The budget makes the Production Tax Credit refundable so new, growing firms can benefit and provide renewable electricity generation.
The budget also would reform and make permanent the deduction for energy efficient commercial property.