Energy -- Even Splitting the Difference is Good News

The next few upcoming years could be difficult for defense and government contractors.   Budget cuts are coming, as commented upon in earlier blogs, especially to large-ticket military hardware and defense items.  But there is good news for innovators, especially in alternative energy.

The Obama Adminstration has been a boon to alternative energy.  During its first budget year, it finally provide funding to the previously-moribund DOE's version of DARPA, called ARPA-E.  Stimulus funds totalled $400 million and they continue to be issued in various programs, often in collaboration with the Department of Agriculture. 

Obama's proposed FY12 budget provides for $550 million for ARPA-E, which is a huge amount of funding for what is still a fledgling agency; it also provides for $588 millio for advanced vehicle concepts.

House Republicans countered with much lower values -- $50 million for ARPA-E and similar large cuts elsewhere.

Where will the budget battle end?  No doubt, somewhere in the middle.  This is good news for small businesses looking to get new business with alternative energy solutions.