US President George W. Bush Feb. 2 proposed a $2.4 trillion federal budget for the 2005 fiscal year slated to start Oct. 1. Members of Congress, which decides how much money actually gets spent, likely will fight with the White House and with each other over the proposal. Competing interests delayed the 2004 budget 3 months past its official deadline, and the same thing could happen again, election year or not.
For 2005, Bush wants to raise defense spending by 7% but hold most other programs close to 2004 levels. His budget drew sharp criticisms across the political spectrum. Fiscal conservatives said the projected $364 billion deficit for fiscal 2005 was too high, given that revenue shortfalls in 2004 will be an estimated $521 billion. Moderates said the plan starved important domestic programs.
Closer to home
Of interest to US producers are oil and natural gas research programs administered by the US Department of Energy. This year, as in previously years, the Bush administration requested deep cuts. Its proposed funding for gas technologies is $26 million, a 39.5% drop in spending compared with what Congress appropriated for fiscal year 2004.
Oil technology spending under Bush's latest plan would be $15 million, a 57.2% decline from current levels. Last year, the White House asked for similar amounts, but Congress restored the funding to historical levels.
Meanwhile, this year the White House wants to modestly boost the US Energy Information Administration's budget, from its current $81 million level to $85 million, a 4.8% increase. DOE said the increase would be used to fund pay increases for federal employees and improve data collection. This includes developing a new gas production survey.
DOE's oil and gas research programs, EIA's budget, and related fossil programs such as the Strategic Petroleum Reserve will be considered under an annual spending measure called the Interior Appropriations bill. The legislation is one of 13 annual spending bills Congress considers for the federal budget. The Interior bill also includes spending for the Department of the Interior, including the Bureau of Land Management, Minerals Management Service, and US Geological Survey.
Energy efficiency
The DOE budget boosts some energy conservation programs and cuts others. The agency's overall spending request for conservation is $875.9 million, a 0.2% drop from what Congress gave the department in 2004.
The Alliance to Save Energy (ASE) said it supports Bush's call for funding increases for low-income weatherization and hydrogen fuel cell research. It also applauded the president for specifically identifying funding for the successful public-private partnership Energy Star program in a footnote in the Environmental Protection Agency's budget. But the group, whose members include business, government, environmental, and consumer leaders, said the budget also proposes cuts in funding to some nationally important energy efficiency programs such as equipment standards, state energy programs, and federal energy management programs. Those items need more funding, not less, ASE said.
