Obama Rolls Out 2016 Budget Request

In This Issue:

• Congressional Focus: President sends FY16 Budget request to Hill...
• Capacity Markets: New England Members press FERC on FCA8, Energy bill coming soon...
• Energy Policy:  FERC Hosts Conference on EPA Rules, Portman-Shaheen Reintroduced... 
• Cyber Security: McConnell to move CISA...

On Feb. 2, the Obama Administration rolled out its $4 trillion Fiscal Year 2016 Budget Request. Although it has no chance of becoming law given the Republican Congress, it outlines White House policy priorities. One controversial aspect of the President’s budget is that it would exceed the appropriations caps resulting from the 2011 budget deal, with additional spending paid for by increasing taxes on the wealthy and on capital gains.

Department of Energy – The Department of Energy request is $29.9 billion, up from its current $27.3 billion level. Included in that amount is the first installment of a 10-year, $4 billion infrastructure fund for states that make emissions reductions exceeding the Clean Power Plan’s targets.

Environmental Protection Agency – The Environmental Protection Agency (EPA) would receive $8.66 billion, an increase of $500 million over current levels. Of that total, $239 million goes to climate initiatives, with $25 million to assist states craft compliance plans for pending power plant regulations. Programs that would see cuts include clean water and drinking water state revolving funds, which would see a reduction of $54 million.

Tax Policy – The budget would make permanent the Production Tax Credit and the Investment Tax Credit for renewable energy, among others. As expected, the Administration proposal again includes a 28% cap on the deductibility of interest on tax-exempt municipal bonds.  

To read the complete legislative update including the following topics, click the links below: