Obama Budget Permanently Extends Renewable Energy Tax Credits

While you have likely heard many details from President Obama’s proposed 2016 budget, here’s an overview of his goals for energy and environment. 

Noting that the US has spent over $300 billion in direct costs to recover from extreme weather events and wildfires in the past decade, the White House would attack climate and encourage renewable energy through:

The Tax Code

• Renew the Wind Production Tax Credit and solar Investment Tax Credit and make them permanent (costs $31 billion over 10 years).
• Repeal $44 billion in fossil fuel industry tax breaks over the next 10 years.
• Raise incentives for people to buy electric cars to $10,000 (from the current $7500) and instead of giving a tax credit, make it a rebate off the sales price.

Continuing Progress on Deploying Renewable Energy

• $7.4 billion in funding for research and deployment of clean energy technologies across DoD, USDA and DOE – a 13% raise.

Incentives to Go Further Than EPA’s Power Plant Regulations

• Clean Power State Incentive Fund: $4 billion for states that exceed EPA’s Clean Power Plan, either by moving up targets or by going further than it requires. Funds can be used to finance efficiency and renewable energy installations, create incentives for businesses to lower emissions or help low income communities that face disproportionate pollution. This is part of EPA’s budget.

Help on Climate Resilience and Affected Communities

• $400 million for National Flood Insurance risk mapping to help communities and businesses assess local flood risks and $89 million to combat drought.
• $50 million program for the National Oceanic and Atmospheric Administration (NOAA) to help coastal regions plan and implement resilience plans.
• $20 million for the Climate Resilience Toolkit, which provides scientific tools and information that helps tribes, businesses, communities and citizens understand climate change risks and opportunities for action.
• POWER Plus: $55 million for communities experiencing layoffs from the declining coal industry – job training, economic diversification, and to clean up land scarred by pollution.

International Climate Action

• $500 million for the Green Climate Fund, a down payment on the $3 billion he promised, and a total of $1.29 billion to help with the international climate push.

Industry Oversight

New fees on oil and gas production on public land would provide $10 million for increased oversight by the Bureau of Land Management.

Example of What Agencies Would Get 

• EPA: $8.6 billion, a raise of $450 million. Examples: develop fuel economy standards for heavy duty trucks; protect and clean up waterways and lands; improve safety of chemical facilities.
• Department of Energy: $29.9 billion, a raise of 9%, includes: 
  -$2.7 billion for Office of Energy Efficiency and Renewable Energy (EERE), up from $1.9 billion, which includes big boosts for advanced manufacturing, building efficiency and solar;
  – $325 million for ARPA-E 
  – $270 million for Grid Modernization
  – $305 million to enhance cybersecurity of the agency and the energy sector
  – 907.6 million for nuclear energy R&D
  – $560 million for fossil energy R&D to advance carbon capture and storage and natural gas technologies
  – $257 million for the Strategic Petroleum Reserve
  – $8.8 billion for nuclear weapons stockpile; $1.9 billion to reduce it
• Interior Dept: $13.2 billion, a raise of 8%. Examples:  restore national parks and ecosystems, such as the Everglades and Great Lakes

Compare with President Obama’s 2015 Budget.  

Here is the White House budget: