The Greens (with support from GetUp) seem to have managed to block at least one of the cuts, with the "solar flagships" program getting a reprieve (the bill has passed the house of reps but still remains stuck in the Senate).
PM Gillard originally tried to claim the programs were unnecessary given her intention to put a cost on carbon emissions one day - given the governments failure to do this in its first term (and the general inadequacy of the CPRS bill they put forward back then) its unsurprising people want to keep the programs in place.
The ABC has a look at the issue - Gillard is gambling with her climate credibility.
AT HER RECENT NATIONAL Press Club address, Prime Minister Julia Gillard rationalised Labor's decision to cut its investment in renewable energy to fund the flood levy on the basis that these policies "are no longer necessary" with a carbon price. Last week, addressing the Committee for Economic Development of Australia, Gillard argued that "a carbon price will drive another sweeping technological revolution like Information Technology did in the 1980s and 90s."
Both cases reveal that those advising the PM grossly misunderstand climate and energy policy.