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April 9, 2001

U.S. Department of Energy Releases FY 2002 Budget

"Setting The Course For Reform And Change In The Future"

Washington, D.C. - United States Energy Secretary Spencer Abraham today released the Department of Energy's (DOE) Fiscal Year 2002 Budget request to Congress, calling it an "important first step and prudent transition setting a course toward comprehensive change and reform as the department looks to the future."

Abraham said that DOE's $19.2 billion budget request reflects a commitment by the Bush Administration to moderate discretionary spending while continuing to meet critical challenges in national security, energy, science and environmental quality.

"Instead of following the status quo, the budget we submit today is principled and sends a clear signal that change is on the way. It strengthens our ability to carry out our national security responsibilities. It meets our key priorities for health and safety. It advances our energy security, and supports important scientific research. And, it reflects President Bush's commitments and my priorities for reform," Abraham said.

"This budget sets a sensible course by clearly fulfilling commitments and establishing key priorities, but at the same time signals our intention to rethink a host of programs while we craft the Bush Administration's policy."

Noting that the ongoing government-wide reviews for national security and energy policy helped shape the budget, Abraham said the FY 2002 budget maintains the flexibility to respond to changes in policy. "Budgets must follow policy, which in turn must follow strategic thinking. On-going policy reviews will evaluate the department's critical tasks and will impact the department more than any other in government."

Abraham also announced that he will direct the department to conduct a sweeping review of its Environmental Management programs and activities while maintaining the department's commitment to health and safety and continued environmental cleanup with the ultimate goal of a "stronger, more effective and efficient environmental management program."

Funding priorities for the FY2002 budget follow four business lines:

National Security ($7.2 billion, an increase of $180 million, or 2.6 percent above FY2001)

"While awaiting the policy shaped by the Administration-wide Defense Posture Review, we will refocus funding to meet vital national security needs, including investments to maintain our nuclear weapons arsenal, shore up an aging weapons infrastructure, and improve safeguards and security at all DOE facilities," said Secretary Abraham.

The total funding for the National Nuclear Security Administration (NNSA), is $6.8 billion. This is a $136 million, or 2 percent increase over the FY 2001 appropriation. Within this total, funding has been shifted to weapons activities to increase support for the near- and long-term needs of the department's nuclear weapons stockpile.

The DOE Stockpile Stewardship Program budget is $5.3 billion, an increase of 4.6 percent over FY 2001, to make immediate investments to support long-term stockpile stewardship and weapons refurbishment programs.

As part of the Stockpile Stewardship Program, the department will launch several campaigns to develop new capabilities to assess weapon status, extend weapon life, and certify that the stockpile remains safe.

To support these efforts, $2 billion is requested for these campaigns. The department's Advanced Strategic Computing Initiative and construction of the world's largest scientific laser, the National Ignition Facility, are two examples of the significant scale and sophistication required in this effort.

The budget calls for $1.03 billion for Safeguards and Security throughout the DOE complex - a $100 million increase over the FY 2001 enacted level. Additionally, the request provides $109.7 million for cyber security - an increase of $32.8 million above FY2001, to enhance protection of information in the NNSA and Science programs. This increase in funding will also be used to improve physical security throughout the complex and enhance materials management and surveillance.

In addition to the NNSA programs, there are five other essential national security programs that report directly to Secretary Abraham - Intelligence, Counterintelligence, Independent Oversight and Performance Assurance, Security and Emergency Operations, and Worker and Community Transition. The FY 2002 request for these five programs total $395.1 million, an increase of $44.4 million or 12.7 percent.

Energy Resources, ($2.3 billion, a decrease of $196 million, or 7.9 percent below FY2001)

"As the Administration's Energy Policy Development Task Force crafts a ‘clear strategy' for addressing America's energy crisis, the department's future budgets will be shaped in critical ways by the conclusions of the task force. The budget has set a course forward without committing the Bush Administration to spending that may well need to change once the task force completes its work. Continuing and expanding programs that have been in place as the country drifted to the brink of an energy crisis does not appear to be a wise course of action. We need a better measure of success in the energy resource area," said Secretary Abraham.

The Clean Coal Power Initiative is a new effort that reflects President Bush's commitment to clean coal technology. The request provides new funding, $150 million in federal matching funds, for innovations in coal-fired power technology.

The new initiative will explore opportunities to develop a consortium of coal companies, utilities, and generating equipment vendors to direct coal research toward the most important problems facing the entire industry. This cooperative effort, totaling more than $2 billion over ten years, will require industry to share the cost of the research work, with the industry share increasing as technologies approach commercial states. Participating companies would take part in program development and evaluate the progress of the research and development efforts.

This year's budget also marks the beginning of the President's commitment to increase funding for Weatherization Assistance by $1.4 billion over 10 years.

The department has also requested $273 million, nearly double the FY2001 enacted level, for Weatherization Assistance grants to provide heating assistance to nearly 123,000 low-income families. In addition, the department will make permanent the Northeast Home Heating Oil Reserve, and important back up for needy families impacted by severe weather conditions.

Environmental Quality ($6.5 billion, a $246 million decrease, or 3.6 percent below FY2001)

"The Department of Energy is committed to the timely, safe and effective cleanup of sites environmentally impacted by the atomic age. First, we need reform in the environmental management area and we will begin immediately to conduct a complete assessment of our environmental management missions, at which time future budget priorities will be set and we will work with a stronger, more efficient environmental management program. In the meantime, the budget fulfills commitments to safety and disposal of nuclear materials and wastes," said Secretary Abraham.

This year's Environmental Management budget of $5.9 billion fulfills commitments to major closure sites, promotes important safety and environmental projects involving treatment and disposal of nuclear materials, and supports the winterization and cold standby of the Portsmouth Gaseous Diffusion Plant in Ohio. The budget also anticipates an upcoming, comprehensive DOE Environmental Management Mission Assessment. This assessment will ensure that taxpayer dollars are used to achieve the overriding goal of a safe and expeditious cleanup of DOE weapons sites.

The budget supports design of a new Waste Treatment and Immobilization Facility at Hanford, Washington, for highly radioactive waste and, the continued operation of the Defense Waste Processing Facility for highly radioactive waste and stabilization of at-risk nuclear materials at the Savannah River site in South Carolina.

With this budget the department retains its capability to receive transuranic waste for permanent disposal at the Waste Isolation Pilot Plant in Carlsbad, New Mexico; continue the movement of spent fuel to safe, dry storage at the Hanford, Washington, and Idaho sites; and continue constructing the Advanced Mixed Waste Treatment Plant at Idaho; and accelerate cleanup activities at Portsmouth, Ohio.

Science and Technology ($3.2 billion, an increase of 0.1 percent over FY2001)

"The department will maintain its commitment to critical scientific research. Our scientific advances contribute to America's competitiveness around the world. Our Basic Energy Science program brings together chemical, biological, and other sciences to uncover fundamental knowledge that will help us to better utilize our energy resources. Our objective, among others, is to learn how to use our scientific advances to address the department's missions in energy resources and cleanup," said Secretary Abraham.

The budget calls for $19.5 million to support the next phase of research in the Human Genome Program - the Genomes to Life - initiative to explore how genomes account for the functioning of cells. The department was the initiator of the Human Genome Program and originally developed the tools and techniques making sequencing of the genome feasible and economical.

The first phase of the Human Genome Program had a major milestone in June 2000 when it completed a working draft of the human DNA sequence. In February 2001, the draft sequence was published for public use.

Also included in this year's science budget is $443 million for biological and environmental research, and $166 million for the Advanced Scientific Computing Research program.

A total of $445 million is requested for the Office of Civilian Radioactive Waste Management. Work during the fiscal year will focus on continuing a transition from predominately investigative science at Yucca Mountain to engineering and design to support the preparation of a license application for submittal to the Nuclear Regulatory Commission, if the site is determined to be scientifically suitable.

The budget also includes $140 million for the Office of Environment, Safety and Health.

Secretary Abraham's Comments
Supporting Documents


Media Contact:Dolline Hatchett, 202/586-5806
Number: R-01-049

 

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