On Friday (March 1, 2013) evening, President Obama formally notified the Office of Management and Budget to initiate the sequester, as both sides were unable and/or unwilling to reach an agreement on a plan to avert the automatic across-the-board spending cuts. The sequester affects several notable energy programs. See below for details.

DOE

• Title 17 Innovative Technology Loan Guarantee Program (1703) cut 5% ($2 million from $38 million in FY’13)
• Office of Energy Efficiency and Renewable Energy (EERE) cut 5% ($91 million from $1.8 billion)
• Advanced Research Projects Agency (ARPA-E) cut 5% ($14 million from $277 million)
• Fossil Energy Research and Development cut 5% ($25 million from $495 million)
• Office of Science cut 5% ($245 million from $4.9 billion)
• Nuclear Energy cut 5% ($39 million from $771 million)

USDA

• Rural Cooperative Development Grants cut 5% ($1 million from $25 million)
• Rural Business Program Account cut 5% ($4 million from $75 million)
• Rural Energy for America Program (REAP) cut 5.1% ($1 million from $25 million)
• Rural Development Loan Fund Program Account cut 5% ($1 million from $11 million)
• Energy Assistance Payments cut 5.1% ($3 million from $65 million)

Treasury

• Grants for Specified Energy Property in Lieu of Tax Credits (Sect. 1603) cut 5.1% ($187 million from $3,671 million)
• Payment to Issuer of New Clean Renewable Energy Bonds cut 5.1% ($1 million from $24 million)
• Payment to Issuer of Qualified Energy Conservation Bonds cut 5.1% ($2 million from $32 million)