Compared with House-passed funding, the FY2007 Senate Appropriations Committee recommendation seeks an increase of $66.1 million (5%). Table 3 shows other differences, most notably those for Biomass & Biorefinery, Geothermal, Hydro, and Weatherization programs. concludes that the lower-than-projected market penetration and flat market share were due primarily to declining fossil fuel and electricity prices during most of that period. In FY2006, as part of a restructuring of the appropriations committees, Congress merged appropriations accounts for the DOE Energy Efficiency Program, which previously had been under the Department of Interior and Related Agencies Appropriations Bill, with the appropriations accounts for the DOE Renewable Energy Program under the Energy and Water Development Appropriations Bill. The DOE request seeks $359.2 million for renewables, which is $84.0 million, or 30.5%, more than the FY2006 appropriations (excluding inflation). The Administration's request includes funding for an Advanced Energy Initiative (AEI) as part of its American Competitiveness Initiative (ACI), which includes accelerated funding for the Solar America and Biorefinery initiatives under DOE's Renewable Energy Program. Second, under the Department of State, the Clean Energy program was created to support the use of renewable energy and energy efficiency to reduce greenhouse gas emissions in developing countries. A major issue erupted over the Cape Wind Associates proposal for a $1 billion offshore development that would install 450 megawatts (millions of watts) of wind turbine capacity in federal waters, the Horseshoe Shoal area, near Cape Cod in Massachusetts. This is to remain in effect until the completion of the study and publishing of the Congressional Report. On June 28, the Sierra Club filed suit against DOD for delaying the study of wind farm impact on radar mandated by the Defense Authorization Act. The British Department of Trade and Industry (DTI) has supported studies of the radar problem for wind farms in the United Kingdom. This study recommended that the problem could be addressed by modifying the design and installation of both the turbines and the radar systems. Biomass-Generated Synthetic Natural Gas (Syngas)

Continuing high natural gas prices have created interest in using renewables to dampen natural gas demand. Both DOE and USDA are conducting research to improve this technology and reduce costs. In July 2006, DOE announced a partnership between EERE and the Office of Science to pursue use of biotechnology to produce cellulosic ethanol. The House approved $20 million and the Senate Appropriations Committee recommends $25 million. Global Climate Change. The Interconnection of Wind Energy and Other Alternative Technologies . Solar Energy Development Policy .
High gasoline and natural gas prices have rekindled interest in the role that renewable energy may play in producing electricity, displacing fossil fuel use, and curbing demand for power transmission equipment. Also, worldwide emphasis on environmental problems of air and water pollution and global climate change, the related development of clean-energy technologies in western Europe and Japan, and technology competitiveness may remain important influences on renewable energy policymaking.
The Bush Administration's FY2007 budget request for the Department of Energy's (DOE's) Renewable Energy Program seeks $359.2 million, which is $84.0 million, or 30.5%, more than the FY2006 appropriation. In support of the President's proposal for an Advanced Energy Initiative (AEI), the request includes major funding increases for solar energy (to support the Solar America initiative) and biomass (to support the Biorefinery Initiative). The main increases are for Solar Photovoltaics ($79.5 million) and Biomass ($59.0 million). Some significant cuts were also proposed, and the request sought to eliminate earmarks.
Appropriations actions by the House and the Senate Appropriations Committee have approved most of the requested FY2007 funding increases for AEI and greatly reduced earmark funding. Compared with House-passed funding, the Senate Appropriations Committee recommendation seeks an increase of $66.1 million (5%). Table 3 shows other differences, most notably those for Biomass & Biorefinery, Geothermal, Hydro, and Weatherization programs.
Important regulatory issues have surfaced for wind energy. A major debate has erupted over the safety and economic and environmental aspects of a proposal by Cape Wind Associates to develop an offshore wind farm near Cape Cod, Massachusetts. The parties to the debate are waiting for the results of a Department of Interior (DOI) environmental impact statement and a Coast Guard study of navigational safety aspects. Also, concern that large wind turbines may disrupt radar systems led to federal actions to halt several wind farm developments, pending the results of a study by the Department of Defense (DOD) that was due in early May 2006. In late June 2006, the Sierra Club filed suit to compel completion of the DOD radar study. An agency of the United Kingdom has studied modifications to turbines and radar systems that may help solve the problem.
Also, high gasoline prices have stimulated a DOE proposal for aggressive development of cellulosic ethanol as an alternative to gasoline and corn-based ethanol. The focus is on using biotechnology to simplify processes and reduce costs.
This report will be updated as events warrant.