President Obama has renewed his proposal to cut over $40 billion in tax breaks for oil, gas and coal producers over the next decade in an attempt to spend more for alternate energy and conservation. The $3.8 trillion budget proposal represents a 29% increase in renewable energy funds in 2013, as compared to 2012.

As part of the budget proposal:

- the DOE is allotted $27.2 billion, $2.3 billion of which would go to the Office of Energy Efficiency and Renewable energy for biofuels, advanced vehicles, renewable electricity and research and development.

- the USDA budget would decrease by 3% to $23 billion. $6.1 billion of the USDA budget would go to loans for rural electric cooperatives, clean energy utilities and to promote renewable energy at electric generation, transmission and distribution sites in rural areas.

- the Rural Energy of America Program would receive $19 million in assistance to rural small businesses and agricultural producers for a variety of renewable energy projects.

- $200 million would go toward continued support for the development of U.S. produced advanced biofuels.

For more information contact Greg Chafee, Morris, Attorney, Manning & Martin, LLP