Amidst the debt ceiling showdown, energy and environmental programs have been singled out for budget cuts by House Republicans. However, with President Obama threatening to veto appropriation bills which he deems as too severe, some degree of compromise is likely- although insiders maintain momentum is clearly with those seeking deep cuts. Today’s GR Energy and Climate Brief analyzes the political debate over proposed GOP cuts to energy and environmental programs for FY2012.

Last night’s dueling speeches to the nation by President Obama and Speaker Boehner highlighted the sharp disagreements that exist between the Obama Administration and the House Republicans over the proper size of the Federal government and the balance between taxation and appropriate levels of US Federal spending. But, they also demonstrated the degree to which both parties are now in agreement that trillions of dollars of spending cuts are necessary, meaning steep program cuts. However, some programs will fare worse than others; in particular, there are some sharp cuts to energy programs, the EPA budget, and critical agriculture line-items like the Biomass Crop Assistance program (BCAP). One thing is clear: no matter how exactly the next six months play out, the conservative faction of House Republicans has used its clout effectively enough so that deep budget cuts to US domestic programs are guaranteed. That said, the Obama Administration and Democrats will fight hard to save their budgetary priorities, including advanced renewable energy research at DOE. Today’s GR Energy and Climate Brief analyzes the latest developments in the budget debate, particularly the energy and environmental programs targeted by the Republican budget cut proposals that have been working their way through the House of Representatives.

EPA Rules Targeted: Amidst the debt ceiling showdown, EPA is being singled out by lawmakers, particularly from industrial and manufacturing states, for budget reductions over and above other agencies – with targeted cuts intended to prevent the agency from implementing the Clean Air Act, chemical, and vehicle rulemaking. The FY 2012 Interior and Environment Appropriations Bill targets environmental and conservation programs under the Department of Interior and EPA funding proposal. House Appropriations Chairman Hal Rogers (R-KY), who is presiding over the Appropriations process, referred to EPA as “the poster child for the Administration’s widespread regulatory overreach” and called his Interior and Environment Appropriations Bill a targeted effort to rein in excessive regulation. The bill would pare back the agency’s budget by an additional 18% on top of the 16% reduction to the EPA’s budget brought about by the April budget deal, for a total of nearly 30% in reductions this year. President Obama, for his part, proposed a 2.7% cut to the EPA budget. As written, the House bill would prevent the EPA from enforcing the following rules:

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