Obama budget rescinds energy industry tax breaks

President Barack Obama outlined a budget plan Thursday that would end $26 billion in oil and gas industry tax breaks, point to a new direction for dealing with nuclear waste and shift government aggressively toward helping to develop renewable energy sources.

Obama’s budget also would largely abandon the Bush administration’s push to develop hydrogen as an energy source, calling its emergence as a viable fuel unrealistic for the near future. Other research into electric car technology, better batteries and development of biofuels is “a much better place to put our money,” said Chu.

The proposed budget, details of which were released Thursday, calls for abandoning the decades-old Yucca Mountain nuclear waste project in Nevada and begin the search for another answer to disposing thousands of tons of used reactor fuel now kept at power plants in 31 states. It also would end government subsidies to the nuclear industry to help them certify and plan new nuclear power plants, cutting the program from $178 million to $20 million.

Associated Press