The US Treasury Department yesterday announced the creation of a new office dedicated to managing the department's various energy and environmental initiatives.

The new Office for Environment and Energy is to be headed up by William A Pizer, a former director at research body Resources for the Future and white house economic adviser on energy issues, and will be tasked with developing, co-ordinating and executing the Treasury's role in both domestic and international energy and green policy.

In particular, the office will be tasked with managing the multi-billion dollar Clean Technology Fund announced earlier this year by President Bush and intended to accelerate the development of low carbon technologies in developing economies.

It will also be responsible for the US Tropical Forest Conservation Act and the Global Environmental Facility, as well as the development of new financial mechanisms and initiatives for tackling climate change.

The announcement came on the same day as the US Department of Agriculture announced that almost 650 farms and agricultural businesses have been selected to receive a total of $35m in grants and loans designed to help them install renewable energy technologies.

The funding – which breaks up into $27.5m of grants and $7.4m in guaranteed loans – will pay for a wide range of green technologies, including energy efficiency improvements and wind, biomass, solar and anaerobic digestion projects.

"These projects are good for business, good for the economy, good for jobs, and they help secure more self sufficient energy resources for our country," said agriculture Secretary Ed Schafer.

The moves come as new evidence emerged suggesting that while the White House remains resistant to many environmental measures, attitudes across the other tiers of government are changing.

According to a survey of 197 federal officials released last month by the Government Business Council, many feel their departments are taking green issues more seriously.

Almost half of respondents said that the priority their agency gave to green practices had increased in the past year, while 39 per cent identified greening government as a top federal initiative.

However, almost half said that an absence of clear policies was hampering efforts to reduce the government's environmental impact, while over a third felt a lack of funding was stopping further progress.