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March 7th, 2011
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Congress and the President have agreed to a temporary funding plan for the government, but the threat of a shutdown still looms, potentially disrupting impending environmental regulations. Whatever deal is ultimately worked out, pressure from the conservative wing of the Republicans means that deep budget cuts, including for the EPA and clean energy programs, are all but inevitable. In this Energy and Climate Brief, Garten Rothkopf examines the current state of play for the budget negotiations, as well as how the debate is likely to play out over the next month.


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OUTLOOK

While Republicans and Democrats on Capitol Hill succeeded last week in passing a stopgap funding bill to keep the government running, the grinding budget fight will hold funding for different agencies and programs hostage and create hurdles for the rollout and management of forthcoming EPA regulations and key energy programs.  Any and all government programs are subject to the budget wars that will continue to play out over both the FY 11 and FY 12 budgets. The sharp disagreement over the size and the target of cuts to public spending make any sort of compromise an exceedingly difficult goal, though both President Obama and House Speaker Boehner have voiced their commitment to preventing a shutdown from happening.  Moreover, even if an agreement is reached on the budget – both for the current fiscal year and for 2012 – pressure from the conservative base of the GOP will make deep budget cuts virtually inevitable.  Today’s GR Energy and Climate Brief analyzes the latest developments on the budget debate, as well as what the energy and environmental impacts of a shutdown may be and what a way forward on the budget might look like.

Source: American Lung Association national survey of 1021 likely 2012 voters

Where the Budget Debate Stands

The continuing resolution passed by House Republicans to fund the government through the end of the current fiscal year cut a total of $61 billion, mostly to domestic discretionary programs.  The Department of Energy and the Environmental Protection Agency are particularly targeted by the GOP's proposal: ARPA-E and other energy innovation programs would be slashed, while the EPA would be prohibited by the budget proposal from spending any money on greenhouse gas and other air pollution programs, in addition to having its administrative budget reduced. 

Full article here.

07 March 2011
John Juech 

GR ANALYSIS
Washington
07 Mar 2011
Bioenergy
07 Mar 2011
National
07 Mar 2011
Fossil Energy
07 Mar 2011
Climate Change
07 Mar 2011



KEY READS
NAMES IN THE NEWS
(D-NJ)
US House of Representatives

Referring to hydraulic fracturing wastewater disposal, Rep. Holt said yesterday that the "EPA has not caught up with the scale of the problem."

(I-VT)
US Senate

Sen. Sanders, along with other Senate Dems, is calling on President Obama to release oil from the 727-million barrel Strategic Petroleum Reserve.


Garten Rothkopf
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Washington, D.C. 20036 | phone: 202.457.7920

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