In Energy Sector, Renewables Get Less Federal Support (GAO report)

[jpak]

http://www.renewableaccess.com/rea/news/story?id=50615

A report from the Government Accountability Office (GAO) comparing federal electricity subsidies by fuel type shows that renewables such as wind still get only a small share of the overall subsidies awarded to the energy sector.

The GAO report looks specifically at research and development (R&D) and tax expenditures for fossil fuels, nuclear, and renewable energy from fiscal year (FY) 2002 through FY 2007. The report's cover letter — addressed to Senators Thomas Carper (D-Del.) and Lamar Alexander (R-Tenn.), who requested the analysis — notes the importance of federal subsidies in light of energy's crucial role within society.

"Because of electricity's importance to producers, consumers, and businesses, the federal government has undertaken a wide range of programs to develop the electricity sector, which includes fuel suppliers, electric utilities, and others in the electricity industry," the letter states.

The report shows total R&D expenditures from FY 2002 to FY 2007 to be $11.5 billion, which was distributed among nuclear ($6.2 billion), fossil fuel ($3.1 billion) and renewable energy ($1.4 billion). Total tax expenditures for the energy sector from FY 2002 to FY 2007 were $18.2 billion, with fossil fuel receiving $13.7 billion and renewable energy receiving $2.8 billion.

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