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Department of Energy Requests $23.6 Billion for FY 2007

February 6, 2006 - 10:49am

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Increased Funding to Advance National Security, Reduce Dependence on Oil, and Boost Economic Competitiveness

WASHINGTON, DC - U.S. Secretary of Energy Samuel W. Bodman today announced President Bush's Fiscal Year (FY) 2007 Budget for the Department of Energy (DOE) requests $23.6 billion, a $124 million increase over the FY 2006 request.  The FY 2007 budget request makes bold investments to improve America's energy security while protecting our environment, puts policies in place that foster continued economic growth, spurs scientific innovation and discovery, and addresses the threat of nuclear proliferation.  These funds directly advance the goals of the Advanced Energy Initiative, which aims to break America's dependence on foreign sources of energy; and the American Competitiveness Initiative, which encourages innovation to strengthen our nation's ability to compete in the global economy - both announced in President Bush's State of the Union Address on January 31, 2006.

"This budget signifies an investment in our future," Secretary Bodman said.  "Continued support for scientific discovery and the development of alternative energy sources is vital to America's energy and economic security.  From new global threats of the 21st century, to recognizing the importance of providing our next generation of scientists, teachers and engineers with a strong educational foundation, DOE's Fiscal Year 2007 budget represents a comprehensive approach to addressing both the near- and long-term challenges America faces."

American Competitiveness Initiative
As a part of the American Competitiveness Initiative, DOE's Office of Science FY 2007 budget requests $4.1 billion, an additional half-billion more than FY 2006, to support funding for basic scientific research.  This ambitious strategy represents President Bush's commitment to double federal spending on science over the next ten years.  Funding will pursue new technologies in the cutting-edge scientific fields of the 21st century - areas such as nanotechnology, material science, biotechnology, and high-speed computing.

Advanced Energy Initiative
The Advanced Energy Initiative aims to reduce America's dependence on imported energy sources.  The FY 2007 DOE budget requests $2.1 billion to meet these goals, an increase of $381 million over FY 2006.  Funding will help develop clean, affordable sources of energy that will help reduce the use of fossil fuels and lead to changes in the way we power our homes, businesses and cars. 

The FY 2007 budget request emphasizes investment in alternative fuel technologies.  Numerous DOE offices will benefit from the Advanced Energy Initiative.  The Office of Science ($539 million) budget incorporates funding for nuclear fusion, including the ITER project, an experimental reactor that puts the U.S. on the pathway to furthering the potential of nuclear fusion as source of environmentally safe energy; solar, biomass and hydrogen research programs. 

The Office of Energy Efficiency and Renewable Energy ($771 million) budget includes considerable funding increases for hydrogen technology, fuel cell technology, vehicle technology, biomass, solar, and wind research programs.  The Office of Fossil Energy ($444 million) supports the Coal Research Initiative and other power generation/stationary fuel cell research programs.  The Office of Nuclear Energy, Science and Technology ($392 million) includes $250 million for the Global Nuclear Energy Partnership (GNEP); and also supports Generation IV, Nuclear Power 2010, and the Nuclear Hydrogen Initiative. 

GNEP is a comprehensive strategy to increase U.S. and global energy security, encourage clean development around the world, reduce the risk of nuclear proliferation, and improve the environment.

Office of Science ($4.1 billion)
The FY 2007 Office of Science budget requests $4.1 billion, a $505 million (14%) increase over the FY 2006 appropriation.  This funding is DOE's component of the American Competitiveness Initiative, which will double investment in basic science research over the next ten years.  DOE's Office of Science is the single largest supporter of basic research in the physical sciences in the nation and helps ensure U.S. world leadership across a broad range of scientific disciplines. 

National Nuclear Security Administration ($9.3 billion)
The FY 2007 National Nuclear Security Administration budget requests $9.3 billion, a $211.3 million increase over the FY 2006 appropriation.  The majority of the increase, $111.4 million, will go towards Defense Nuclear Nonproliferation programs to accelerate work securing nuclear material in the former Soviet Union and to advance aggressive global nuclear nonproliferation goals.  This request provides $675 million toward the total U.S. commitment to the Global Partnership to address nonproliferation, disarmament, counter-terrorism, and nuclear safety issues.  $6.4 billion, a $38 million increase over FY 2006 appropriation, will fund Weapons Activities to continue the transformation of the United States's nuclear deterrent and support infrastructure enabling the U.S. to be more responsive to 21st century global threats. 

Office of Energy Efficiency and Renewable Energy ($1.2 billion)
Office of Energy Efficiency and Renewable Energy budget requests $1.2 billion, $2.6 million (0.2%) more than the FY 2006 appropriations.  Much of this funding is an integral part of the Advanced Energy Initiative and expands key programs that focus on developing new energy choices, including: Hydrogen Fuel Technology ($114 million); Fuel Cell Technology ($82 million); Biomass ($150 million), including research into cellulosic ethanol, made from switch grass, wood chips and stalks; the Solar America Initiative ($148 million); Vehicle technology ($166 million); and Wind projects ($44 million). 

Office of Nuclear Energy, Science and Technology ($632.7 million)
The Office of Nuclear Energy, Science and Technology FY 2007 budget requests $632.7 million, a $97.0 million (18%) increase over FY 2006 appropriation.  In addition to the $250 million for GNEP, which is currently funded within the Advanced Fuel Cycle Initiative, the request includes Generation IV (Gen IV) R&D ($31.4 million) which will improve the efficiency, sustainability, and proliferation resistance of advanced nuclear systems and Nuclear Power 2010 ($54.0 million), which will pave the way for industry to order new, advanced light-water reactors by 2010.  $95.3 million will also support Idaho Facilities Management, providing the Idaho National Laboratory with the site-wide infrastructure required to support its R&D programs.

Office of Civilian Radioactive Waste Management ($544.5 million)
The Office of Radioactive Waste Management requests $544.5 million for FY 2007 for further development of the Yucca Mountain Project, a $99 million increase from the final FY 2006 appropriation, excluding funds for the Integrated Spent Fuel Recycling Facilities.  These funds will support ongoing efforts to develop a license application to submit to the Nuclear Regulatory Commission.  The FY 2007 budget request includes $67.8 million for the development of transportation infrastructure such as rail lines, casks and rail cars, and establishing a long-term procurement plan for transportation activities. 

The remainder of the request is devoted to the development of nuclear safety programs and the management and scientific work for the Yucca Mountain Project by Sandia National Laboratories.

Office of Environment, Safety and Health ($109.9 million)
The Office of Environment, Safety and Health (EH) requests $109.9 million for FY 2007, approximately 6% above the FY 2006 appropriation, to support its mission of ensuring the safety and health of the DOE workforce and members of the public and the protection of the environment in all DOE activities.  Budget requests for EH are broken into Energy Supply and Conservation activities and Other Defense Programs activities, each of which have requested increases for FY 2007 of 5.1% and 6%, respectively.

The Energy Supply and Conservation budget request includes a $1.4 million increase for DOE-wide EH programs, which will be allocated to support the President's Management Agenda initiatives, fulfill legislative mandates and conduct National Environmental Policy Act technical reviews more efficiently.  EH's Other Defense Activities budget requests increases for activities such as the Corporate Safety Programs (+$4.6 million) and the Energy Employees Occupational Illness Compensation Program (+$4.5 million), which is funded entirely with carryover funds from FY 2005.  

Office of Fossil Energy ($648.9 million)
The Office of Fossil Energy (FE) FY 2007 budget requests $648.9 million, a $192.8 million (23%) reduction from FY 2006 appropriation.  FE's Clean Coal and other power generation/stationary fuel cells programs are a part of the Advanced Energy Initiative, which aims to reduce America's dependence on imported oil, especially through the use of new technology.  $61 million in savings is reflective of terminating support for energy companies to explore for oil and gas because such R&D activities are more appropriate for the private sector to perform.

This budget reflects the Administration's commitment to FutureGen ($54 million), the flagship demonstration project for clean coal technology; and provides $330 million for coal research, nearly completing President Bush's commitment for clean coal R&D four years ahead of schedule.  In addition to this requested funding, the office has a balance of more than $500 million as of the end of FY 2005, which will continue to support clean coal technology research.

Office of Electricity Delivery and Energy Reliability ($124.9 million)
The FY 2007 Office of Electricity Delivery and Energy Reliability (OE) budget requests $124.9 million, an overall decrease of $37.0 million (23%) below FY 2006 appropriation, reflecting the phasing out of completed activities within the Distributed Energy program and building of efficiencies resulting from the merge of the predecessor organizations.  Funding will support R&D in areas such as high-temperature superconductivity, and simulation work needed to enhance the reliability and effectiveness of America's power supply.  This office also operates DOE's energy emergency response capability and led DOE's support effort during and after the 2005 Gulf Coast hurricanes.

Office of Legacy Management ($201.0 million)
The Office of Legacy Management FY 2007 budget requests $201.0 million, a $123.2 million (158%) increase over the FY 2006 appropriation.  This office oversees long-term stewardship activities at sites where active remediation has been completed.  This large increase reflects the transfer of clean-up sites completed by the Office of Environmental Management. 

Office of Environmental Management ($5.8 billion)
The FY 2007 Environmental Management budget requests $5.8 billion, $762 million (12%) below the FY 2006 appropriation, primarily due to the completion of Rocky Flats in Colorado, and the anticipated completion of Fernald, and a group of sites known as the Nevada offsites.  Rocky Flats closed 56 years ahead of schedule at a cost of approximately $7 billion, saving American taxpayers roughly $29 billion.

Media contact(s):

Craig Stevens, 202-586-4940

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