Federal Spending Compromise to Cut Farm Energy, Bioenergy, and Conservation Programs

At the eleventh hour on April 8, shortly before the federal government would be required to shut down for lack of funds, budget negotiators announced an agreement on the FY 2011 appropriations (i.e. for the current fiscal year, which runs October 1, 2010 – September 30, 2011). Overall, the plan would reduce federal spending by about $38.5 billion below FY 2010 appropriated levels, with significant cuts for farm bill energy and conservation programs and Department of Energy (DOE) Energy Efficiency and Renewable Energy programs. Specific program cuts include:

• The USDA Rural Energy for America Program (REAP) will be cut $34 million or 85 percent of its FY 2010 discretionary funding level.
• The USDA Biomass Crop Assistance Program will be cut $134 million or 54 percent below the total spent in FY 2010.
• The DOE’s Energy Efficiency and Renewable Energy Program, which includes funding for the Biomass RDD&D Program, would be cut $438 million or 20 percent below the FY 2010 level.
• The USDA’s Wetlands Reserve, Conservation Stewardship, and Environmental Quality Incentives Programs will be cut a combined $239 million, or an average of 11 percent below FY 2010 levels.

The House and Senate must approve this budget agreement before the end of this week.