However, research money for wind energy would fall 5.5 percent, while solar energy funding would increase 0.1 percent and hydropower research dollars would remain the same.

Energy Secretary Spencer Abraham said many of these renewable energy and energy conservation programs have already resulted in cutting-edge technologies that have been adopted by businesses and increased their profits.

"We've concluded that since much of that research was quite advanced it made sense for the private sector at this point to take on a greater share of the cost," Abraham told reporters in a budget briefing.

The administration's new grand plan to develop hydrogen-powered cars as well as supporting service stations and other infrastructure had the biggest increase in funding.

Research money for hydrogen technology jumped 121 percent to $88 million. The total amount of money in the budget for the hydrogen-based "FreedomFuel" and FreedomCAR initiatives is $272.4 million for the upcoming energy spending.

Research on traditional fossil fuels did worse, with funding unchanged at $533.3 million.

Petroleum research took a huge hit, down 58 percent, while natural gas research funding was up 18 percent. Proposed research funds to develop clean coal increased 0.7 percent.

Research funds are a small part of the Energy Department's total budget, which would increase 5.9 percent to $23.4 billion.