The White House Office of Management and Budget today released a $3.5 trillion budget for FY 2010-2019. The plan calls for the enactment of comprehensive cap-and-trade legislation for greenhouse gases, resulting in a reduction in GHG emissions to 14 percent below 2005 levels by 2020 and 83 percent below 2005 levels by 2050. The budget calls for 100 percent of allowances to be auctioned, with some proceeds going to fund clean energy technologies, but most proceeds going to make permanent the payroll tax credit created by the recently-passed stimulus plan. The budget projects $645.7 billion in "climate revenues" for FY 2010-2019, $120 billion of which will be allocated to clean energy technologies.

The budget increases the Department of Energy's budget to between $26.3 and $28.3 billion per year over the life of the budget (over and above the $38.7 billion allocated in the stimulus package), an increase of about $2 to $3 billion per year over pre-2009 levels. The EPA's budget (though still substantially smaller than DoE's) will be increased by an even greater proportion, from $7.5 billion in 2008 to between $10.5 and $10.9 billion annually over the life of the budget (in addition to the $7.2 billion allocated in the stimulus package).