Special Federal Budget Issue: Department of Energy

The Administration's FY 2006 budget request for the Department of Energy (DOE) is $23.4 billion, or $475.4 million (2 percent) less than the FY 2005 request. The decrease is largely absorbed by DOE's Environment budget which, at $7.34 billion, reflects a 6.4 percent decrease over FY05. The Science budget, at $3.46 billion, also would have its funding cut by $136.8 million (3.8 percent). The National Nuclear Security Administration and Energy budgets would experience increases of $233.3 million (2.5 percent) and $73.7 million (3 percent), respectively.

The FY06 request for the Office of Energy Efficiency and Renewable Energy (EE), $1.2 billion, reflects a 3.9 percent decrease over the office's FY05 level. EE conducts research, development and deployment activities to advance energy efficiency and clean power technologies and practices. Of the $48.2 million decrease, $26.7 million would be cut from renewable energy activities under the Energy Supply account. The remaining $21.4 million in cuts would come from energy efficiency activities, funded within the Energy Conservation account.

One major DOE program, the Coal Research Initiative, would receive $286 million in FY06 between two components ­ $218 million for the coal research and development (R&D) program and $68 million for the Clean Coal Power Initiative (CCPI). Requested funding for the initiative shows a $13.2 million increase (4.9 percent) over the FY05 level, with both components sharing the increase. Specific areas to receive funding are detailed further below.

The Hydrogen Fuel Initiative would receive $260 million to support hydrogen fuel production, storage, distribution and infrastructure. Funding for this initiative - a $35 million increase over FY05 enacted levels - would be distributed across EE and the Offices of Fossil Energy, Nuclear Energy and Science. The Hydrogen Fuel Initiative complements the FreedomCAR Partnership, which supports hybrid vehicle technologies needed to enable the mass production of affordable, practical hydrogen powered fuel cell vehicles.

Under the Office of Science, $126.6 million is dedicated for nanoscience research and $290.6 million is targeted for fusion sciences research. Combined, the two items receive increases totaling $64.2 million. Other Office of Science initiatives with respective increased or decreased levels, by percent, include:

• Advanced Scientific Computing Research ­ $207.1 million (10.9 percent decrease).
• Basic Energy Sciences Program ­ $1.15 billion (3.7 percent increase)
• Biological and Environmental Research ­ $455.7 million (21.7 percent decrease)
• High Energy Physics ­ $713.9 million (3.1 percent decrease)
• Nuclear Physics ­ $370.7 million (8.4 percent decrease)

Additional DOE programs of interest:

• Advanced Fuel Cycle Initiative ­ $70 million (3.8 percent increase)
• Advanced Metallurgical Processes Research ­ $8 million (19.2 percent decrease)
• Biomass and Biorefinery Systems R&D program ­ $72.2 million (18.1 percent decrease), the combined total between the Energy Supply and Energy Conservation accounts
• Building Technologies ­ $58 million (11.5 percent decrease)
• Clean Coal Technology ­ budget proposes to redirect funds from withdrawn clean coal projects to the Fossil Energy R&D program for work on the Future Gen project beginning in FY 2007. The FutureGen project, which is part of the Clean Coal Power Initiative, is expected to yield the world's first integrated carbon-sequestration and hydrogen production research power plant.
• Coal Research Initiative ­ $286 million (4.9 percent increase)
  • Clean Coal Power Initiative ­ $68 million (1.3 percent increase)
  • Coal R&D ­ $218 million (6 percent increase)
    • Advanced Research ­ $30.5 million (28.6 percent decrease)
    • Fuels ­ $22 million (31.5 percent decrease)
    • Central Systems ­ $98.3 million (15 percent increase)
    • Sequestration R&D ­ $67.2 million (48 percent increase)
• Generation IV Nuclear Energy Systems Initiative ­ $45 million (13.4 percent increase)
• High Temperature Superconductivity R&D ­ $45 million (17.6 percent decrease)
• Industries of the Future ­ $22.4 million (42.1 percent decrease) for Specific industries and $30.6 million (6.9 percent decrease) for Crosscutting industries. The budget request allows for the completion of existing high-payoff projects and concludes work on near-term commercialization efforts that industry can complete on its own. For the Specific subprogram, decreases in funding would be absorbed by all but Supporting industries. For Crosscutting, four industries would actually would experience increases as no new funding is proposed for Robotics ($1.97 million decrease) and Gasification Programs (no change). Funding for industrial technical assistance also is cut by $2.28 million.
• Natural Gas Technologies ­ $10 million (77.7 percent decrease)
• Nuclear Energy Research Initiative (NERI) ­ no new funding requested ($2.5 million decrease). In FY04, DOE began to integrate NERI activities into its mainline nuclear R&D programs. Solicitations were issued in late FY04 and 35 cooperative agreement awards will be made to U.S. universities in early 2005.
• Petroleum/Oil Technology ­ $10 million (70.5 percent decrease)
• University Reactor Fuel Assistance and Support ­ $24 million (0.8 percent increase)
• Vehicle Technologies ­ $165.9 million (0.3 percent increase)