Sen. Jeff Bingaman (D-NM), chairman of the Senate Energy and Natural Resources Committee, Monday blasted a provision in the Bush administration’s $25 billion budget request for the Department of Energy (DOE) in fiscal year (FY) 2009, which allocates zero dollars for oil and natural gas research and development (R&D). The DOE also proposes to repeal $50 million in guaranteed funding outside the regular budget for onshore natural gas exploration.

“This leaves coal as the only fossil fuel on which DOE now proposes to carry out any research. The administration has a real blind spot when it comes to developing new domestic natural gas resources. The gas that is most available to the consumers who need it is located onshore, and the key players in developing it are independent oil and gas producers,” who can’t afford their own R&D departments, Bingaman said.

“If DOE walks away from the R&D needed to keep natural gas flowing in an economic and environmentally responsible manner, then consumers will pay through higher prices and working families will pay through loss of manufacturing jobs that depend on natural gas.”

Bingaman urged Congress to reverse this “short-sighted decision.” He also has called DOE Secretary Samuel Bodman to testify Wednesday before the Senate energy panel on the administration’s budget request for his department.

Even though the Bush administration has neglected oil and gas R&D in its budget, Congress can — and has in the past — restored funding for it, said Bingaman spokesman Bill Wicker. In FY 2007, Congress restored $24.75 million for R&D, and followed up with $50 million in FY 2008, he noted.

Bingaman further questioned the Bush administration’s proposed funding cuts for solar energy research, hydropower and industrial energy efficiency. “If American energy-intensive industries, and the jobs they provide, are to prosper in a future in which we impose a cost on carbon dioxide, we need to act aggressively now to position them as global leaders in energy efficiency of all kinds. It’s a bad time to be rolling back this societal investment in our future high-wage jobs.”

He applauded the administration’s requested increase in funding for geothermal energy. “Here is one area in which Congress’s action to reposition the DOE geothermal program, in the Energy Independence and Security Act of 2007, has paid off. I’m pleased that the program is being supported with a 50% increase,” Bingaman said.

But the request to eliminate funding for DOE’s weatherization program, which currently is funded at $220 million, drew an objection from Bingaman. “It’s hard to fathom why this program is being terminated by the DOE now — a lot of households need help reducing their energy bills, and the work of insulating their homes creates residential construction jobs that are greatly needed right now” as well, he noted.

“I am working to get weatherization funding for an additional 77,000 dwellings into the economic stimulus package before the Senate, so the program can help over 162,000 households this year. I will certainly urge my colleagues to reverse DOE’s ill-timed budget cut for fiscal year 2009.”

In related action, the Federal Energy Regulatory Commission Monday submitted a FY 2009 budget request of $273.4 million in total funding and 1,465 full-time equivalent (FTE) employees, an increase from $260.4 million in FY 2008 and a hike of 65 FTEs. “This year’s budget request reflects the growing importance of FERC’s enforcement and reliability missions,” said Chairman Joseph Kelliher. The bulk of the agency’s budget will be earmarked for FERC’s energy infrastructure program.

The Commodity Futures Trading Commission (CFTC), which has been under pressure from Congress to increase its oversight of energy trading markets, has been budgeted $130 million in FY 2009, up from $112.05 million in FY 2008. “The $130 million request recognizes the continued need for increased funding for the CFTC in light of unprecedented growth in the futures markets,” said Acting CFTC Chairman Walter Lukken.

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