Energy Technology Investments Face Funding Cliff

Funding for research and development in the U.S. is running up to a cliff. If sequestration kicks in on March 1, across-the-board cuts and a decade-long spending cap will go into effect. According to the American Association for the Advancement of Science (AAAS), this would mean an 8.2% ($4.6 billion) cut in the Department of Energy's R&D budget between now and 2017. These cuts could impact not only the Department's national laboratories, but also universities and research programs around the country.Looking at the numbers - the U.S. federal government typically spends $4-6 billion a year on energy RD&D. So, sequestration essentially means eliminating funding for one year out of the next five. While this amount is less than one-fifth of the more than $33 billion per year that the government spends on health research, it is no chump change. And, in invests in the basic research that fuels technological innovation. These funds support graduate students around the nation, and are the seed money for research, development, and demonstration projects that have impacts throughout the industry (for example lithium ion batteries and hydraulic fracturing). [More]