Printable Version

Testimony of Dr. Abraham E. Haspel

Acting Director for Energy Efficiency and Renewable Energy
Department of Energy
Before the Subcommittee on Energy
House Committee on Science

April 26, 2001

Chairman Bartlett, Ms. Woolsey and members of the Subcommittee, it is a pleasure to be here today to discuss the Administration's FY 2002 budget request for the Office of Energy Efficiency and Renewable Energy. FY 2002 is a transition year for our programs. Our budget supports the Administration's commitment to moderate discretionary spending while meeting critical national needs in energy security and environmental quality. Furthermore, our budget adjusts program requests to refine the Department's missions, and to allow the implementation of management strategies that will meet future challenges.

The Office of Energy Efficiency and Renewable Energy's budget also reflects three Administration themes: first, enhancing energy security — decreasing US reliance on oil imports by increasing technology efficiencies and by increasing domestic renewable energy supplies; second, enhancing electricity reliability — ensuring grid reliability and advancing small-scale, on-site power generation; and third, mitigating impacts on our low-income citizens. While we have adjusted the requests for some of our programs, we are still presenting a strong portfolio of R&D activities in FY 2002. Many of our programs such as Distributed Energy Resources, bioenergy, hydrogen, hydropower, electric energy systems, the Renewable Energy Production Incentive are held at or near FY 2001 levels.

The beginning of this decade has already borne witness to the impending energy problems that face our nation and this planet. The Office of Energy Efficiency and Renewable Energy's mission of advancing clean energy technologies, including energy efficiency and renewable energy, will play an increasingly critical role in securing our energy future, improving our environment and maintaining our economic growth. EERE leads the nation in the research, development and demonstration of affordable, advanced energy efficiency and renewable energy technology and practices.

Mr. Chairman, in my testimony today, I plan to cover the following areas. First, I will discuss energy trends that have emerged over the last decade and how they will drive great change into the next decade. Second, I will speak about specific recent events that highlight the energy problems facing our nation. Finally, I will highlight the FY 2002 budget request (as amended), $1.032B, specifically as it outlines the EERE programs within the jurisdiction of this subcommittee.

The Administration plans to send an FY 2002 budget amendment to the Congress that reduces funding of $39.176M from the Partnership for a New Generation of Vehicles (PNGV) program and increases several renewable activities. More detailed information is included in the following budget tables and in the text of my statement.

Recently, the electricity situation in California and other western states have highlighted the effects of low capacity margins for electricity generation. Additionally, the National Electricity Reliability Council predicts that over 35 states will be operating with capacity margins under 10 percent by the year 2009. Another data point in the emerging energy crisis comes from the petroleum product price spikes in the Midwest and northeast last summer. I would offer that the results of our program like: superconducting wires, distributed power generation, and biofuels for cars and trucks, represent government programs that might make a difference. The federal government remains committed to helping develop renewable energy technologies to help relieve these problems.

Our energy efficiency programs also have a substantial impact on our Nation's Energy Security, our Aging Energy Infrastructure, the Economy, and our Environmental Quality. For example, buildings account for more than one-third of energy consumption in the U.S., including two-thirds of all electricity generated. DOE aims to accelerate the introduction of highly-efficient technologies and practices through R&D. Our building sector programs improve building quality, reduce construction wastes, help revitalize the communities they serve, and save the taxpayers money. For example, while DOE programs fostered hundreds of innovations, five technologies alone — electronic ballasts, flame retention oil head burners, supermarket refrigerator compressors, low-e windows and building design software — saved four times as much money as DOE invested in all its energy efficiency programs over the past 20 years.

The Industry sector is the nation's largest energy consumer, accounting for 38 percent of all U.S. energy use. By developing and adopting more energy-efficient technologies, industry can boost productivity and competitiveness and improve the environment. Through our Industries of the Future program, DOE helps industry develop and apply advanced, energy-efficient technologies and processes.

DOE Transportation programs provide support for research, development, and deployment programs, which will reduce oil consumption by achieving significant improvements in vehicle fuel economy, as well as the displacement of oil by other clean and cost-competitive domestic fuels.

Furthermore, our Office of Power Technologies is leading research efforts to significantly improve energy reliability and power quality through the use of on-site distributed energy resources that reduce energy losses and increase stability of the national grid. Moving energy supplies closer to the point of end-use provides advantages in: load management, power quality, high efficiency and reliability. This can be important in regions where the national grid is under stress.

Finally, Mr. Chairman, my statement does not include a discussion of the Federal Energy Management Program ($13.3M), the Weatherization Assistance program ($273.0M) or the State Energy Program ($38.0M) as it is my understanding that those programs are not within the jurisdiction of this Subcommittee. Nevertheless, I would point out that the increase in our weatherization program is just the first installment of a ten-year commitment by Administration to provide $1.4B for the program that will result in an additional hundreds of thousands of low-income homes weatherized. However, I have included these programs in the budget tables to reflect the totality of our FY 2002 budget request to the Congress.

FY 2002 Budget Request

EERE is divided into five programs that focus efforts on specific sectors of the energy economy: buildings, transportation, industry, power and the federal government as an energy user. The field operations for EERE programs are carried out by the Golden Field Office in Colorado, and in six Regional Offices.

The FY 2002 budget request for EERE programs within the Subcommittee's jurisdiction is $708,158,000, a decrease of $264,223,000 from FY 2001 enacted levels.

The following tables provide details of our FY 2002 budget request. The sections following the tables describe ongoing programs and our FY 2002 budget request in the areas of building technologies, industrial technologies, transportation technologies, power technologies and management.

Office of Energy Efficiency and Renewable Energy
FY 2002 request
$ in millions

Program	FY 2001 comparable	FY 2002 request	Amendment ¹	Request with amendment
Renewable Energy Resources	373,179	237,477	39,176	276,653
Biomass/biofuels Energy Systems	86,268	80,500	1,455	81,955
Geothermal Technology Develop.	26,911	13,900	0	13,900
Hydrogen Research	26,881	13,900	12,981	26,881
Hydropower	4,989	2,500	2,489	4,989
Solar Energy
Concentrating Solar Power	13,710	1,932	0	1,932
Photovoltaic Energy	75,060	39,000	0	39,000
Solar Buildings	3,911	2,000	0	2,000
Wind Energy	39,553	20,500		20,500
Electric Energy Systems & Storage	51,746	33,927	17,819	51,746
Renewable Support & Implementation
Departmental Energy Mgmt	1,984	1,000	0	1,000
International Renewable Energy	4,949	0	2,500	2,500
Renewable Energy Production Incentive	3,991	2,059	1,932	3,991
Renewable Indian Energy Resources	6,585	0	0	0
Renewable Program Support	3,991	2,059	0	2,059
National Renewable Energy Laboratory	3,991	5,000	0	5,000
Program Direction	18,659	19,200	0	19,200
Subtotal, Renewable Energy Resources	373,179	237,477	39,176	276,653
Building Technology, State & Comm. Programs	295,142	368,970²		368,970
Building Research and Standards	64,243	32,392	0	32,392
Building Technology Assistance	210,879	321,488	0	321,488
Management & Planning	14,133	15,090	0	15,090
Cooperative Programs with States	1,996	0	0	0
Energy Efficiency Science Initiative	3,891	0	0	0
Federal Energy Management Program	25,661	13,300	0	13,300
Industrial Technologies	148,622	87,724	0	87,724
Industries of the Future (Specific)	72,390	46,424	0	46,424
Industries of the Future (Crosscutting)	61,719	31,900	0	31,900
Management & Planning	8,626	9,400	0	9,400
Cooperative Programs with States	1,996	0	0	0
Energy Efficiency Science Initiative	3,891	0	0	0
Transportation Technologies	255,398	237,541	39,176	198,365
Vehicle Technologies R&D	159,610	154,116	27,694	126,422
Fuels Utilization R&D	23,509	23,529	2,621	20,908
Materials Technologies	42,223	38,814³	8,521	30,293
Technology Deployment	15,017	10,200	340	9,860
Management & Planning	9,152	10,232	0	10,232
Cooperative Programs with States	1,996	0	0	0
Energy Efficiency Science Initiative	3,891	0	0	0
Distributed Energy Resources	47,346	47,346	0	47,346
Policy & Management	43,274	40,750⁴	650	40,750
Total EERE	1,188,622	1,032,458	39,176	1,032,458

¹ The amendment is expected to be submitted by the Administration in the next several weeks.
² Includes $1.829 million reallocation from PNGV Materials.
³ Includes $1.829 million reallocated to Building Research and Standards and $650,000 reallocated to Policy and Management.
⁴ Includes $650,000 reallocated from PNGV Materials.

Renewable Energy Resources

Biomass/Biofuels and the Bioenergy Research and Development Initiative ($81.9M)

The Bioenergy Initiative provides an integrated framework for collaborative research and development to improve our Nation's ability to not only convert biomass into electric power, heat, and clean liquid transportation fuels, but also extract high-value biobased industrial materials such as chemicals, plastics, and building materials.

Developing this "home-grown" resource with multiple applications can provide significant near term benefits to many sectors of our economy, contributing to a healthier, more robust rural economy; improved environmental quality; and reduced oil imports. Our biomass activities in the Energy and Water Development account focus on two distinct elements: Biopower, which co-fires biomass with coal or gasifies biomass material that is combusted to generate power; and Biofuels, which converts agricultural products to ethanol. Combined, these core activities provide the underpinnings of our national effort to more effectively utilize a vast domestic resource. With the strong support from industry, government, academia, and the national laboratories, we believe that biomass holds great promise to help meet our future energy needs.

Biopower Systems ($37.8M)

The Biomass Power Systems Program works towards making biopower systems a significant contributor to the U.S. energy market by 2010, through collaboration with the private-sector and other Federal agencies, and by providing power in a variety of settings, including utility and distributed applications. Biomass systems promise to help meet our national energy needs, while simultaneously strengthening conventional energy security, protecting our environment, and improving our rural economy. To meet these objectives, biopower R&D involves a combination of near-, mid-, and long-term activities. Biopower activities fall within five categories: Thermochemical Conversion ($4.0M); Systems Development ($26.6M); Feedstock Production ($3.5M); Regional Energy Biomass program ($1.2M); and Bioenergy ($2.5M).

Thermochemical Conversion. This effort conducts basic and applied research, testing, and feasibility studies in the areas of biomass combustion and biomass gasification to provide the foundation for advanced and improved technology. Experimental research is conducted in the areas of biomass combustion and cofiring as well as on the coupling of biomass conversion devices to power generation equipment, including engines, gas turbines and fuel cells. Analytical studies are also conducted on the cost, performance, economic potential, and life-cycle emissions of existing, novel, and competing power generation technologies. In FY 2002, the program will add research efforts that support systems integrated research and modeling efforts of gasification, including gas cleanup and conditioning.

Systems Development — Within Systems Development the programs focuses on Cofiring with Coal, Biomass Power for Rural development, Small Modular Biopower and Gasification R&D. Our cofiring activities will continue developing co-firing coal and biomass by exploring advanced technologies that enhance system reliability, performance, and efficiencies including work with municipalities and rural electric cooperatives. Performance is monitored and verified by analyzing initial cofiring and feedstock production trials and establishing operation and maintenance protocols.

Biomass Power for Rural Development activities include the New York Salix Willow project that will produce 30-40 MW of generating capacity through cofired applications, and the Iowa Chariton Valley Switchgrass project that will utilize up to 50,000 acres of switchgrass dedicated to co-firing operations. Performance will be measured by completing two Biomass Power for Rural Development projects with more than 50 MW of new biomass power generating capacity.

The Small Modular biopower program continues its efforts to research and develop systems that integrate small scale gasifiers with advanced power generating components such as internal combustion (IC) engines, microturbines and fuel cells. Performance will be measured through field verification R&D of systems that are being developed under current contracts. This effort will be expanded to include other feedstocks, to increase the flexibility, applicability and reliability of these systems.

The Vermont Gasifier R&D project has been completed and the technology is being commercialized by the contractor (FERCO). Efforts will now focus R&D on technologies that produce product gas from a broad range of biomass feedstocks. These efforts will focus on gas production, hot gas cleanup, gas preparation, and innovative and productive uses of gasifier waste streams. This R&D will form the basis for future bio-refinery development.

Feedstock Production: This program focuses on research to improve yields and reduce handling costs of herbaceous and woody crops produced on farms. We will continue efforts to create tools for evaluating viability of multiple bioenergy technologies, with an emphasis on Biopower, and their impact on feedstock demand. Performance will be measured by developing 3 high-yield willow clones which increase yields by at least 20 percent. A slight increase in FY 2002 will be used to fund an assessment of the effects of variability in soil type and climate on feedstock characteristics relevant to combustion and gasification systems and on soil carbon sequestration processes, as well as yield variability.

Regional Energy Biomass Program: The activity sponsors grants to State Energy Offices that enable technology transfer and industry support of activities to expand the near-term use of biomass conversion technologies and provide reliable information to potential biomass users. This funding continuation will sponsor grants to State Energy Offices and local industries for biomass power projects as well as to complete the integration of biomass resource assessments.

Biofuels Systems ($44.8M) — this is discussed under the Transportation Technologies portion of my statement.

Geothermal Energy Technology Development ($13.9M)

The Geothermal Technology Development Program works in partnership with U.S. industry to establish geothermal energy as an economically competitive contributor to the U.S. energy supply. The Program sponsors research and development that will help the United States realize substantial economic, environmental, and energy security benefits. Technology improvements will reduce the levelized cost of generating geothermal power to 3 to 5 cents/kWh by 2010, as compared to 5 to 8 cents/kWh in 2000.

In helping to meet the priority needs of industry, the Program will focus primarily on exploration and drilling research. Better understanding of geothermal processes and improved analytical methods of exploration will enable industry to locate and characterize new geothermal fields.. Advanced technology for drilling wells will provide access to deeper resources while lowering costs, thereby expanding the economic resource base. Program goals will be achieved with a balanced strategy of technology improvements in partnership with industry on cost-shared, competitively-selected projects.

The Geothermal program is divided into three activities: Geoscience and Supporting Technologies ($3.5M), Exploration and Drilling Research ($6.9M), and Energy Systems Research and Testing ($3.5M).

Geoscience and Supporting Research. Two activities are funded within this category: Core Research and University Research. Within the Core Research program, the Department will continue to investigate complex natural geothermal processes and develop technology to facilitate producing geothermal resources in an economical manner. Research activities include improving reservoir models, studying fracture dynamics, developing tracers, and conducting geochemical research. The funding provides for a continuation of projects in reservoir management that promise to give industry reliable tools for reservoir analysis and production. Our University Research efforts will focus on earth science at studies universities to expand the geothermal knowledge base. Knowledge gained from this work will result in new and improved technology that will help meet cost goals. The decrease in funding reflects the completion, or termination, of multi-year grant awards and a realignment of project activities to complement core research. No funding is requested in FY 2002 for Enhanced Geothermal Systems.

Exploration and Drilling Research. We will continue cost-shared exploration projects initiated with industry in FY 2000 to find and confirm new geothermal resources within the United States. We will also continue to conduct geophysical, geological, and geochemical exploration research. Work will continue on developing new drilling components, such as the Diagnostics-While-Drilling subsystem, for integration into an Advanced Drilling System that will reduce the cost of drilling geothermal wells by up to 50 percent, from $300 per foot in 2000 to $150 per foot by 2008.

Energy Systems Research and Testing. Advanced heat and power systems activities seek to improve technology in heat conversion and power systems for application to a broad range of geothermal resources and environmental conditions. The subactivity involves laboratory research on innovative systems, including heat exchangers, air-cooled condensers, and other components, for both low and high temperature applications. The reduction in funding stems from the completion of work on advanced heat cycles and some condenser studies. Finally, no funding has been requested for the Geopowering the West initiative. FY 2001 efforts will be completed and information accumulated will be shared with the public.

Hydrogen Research ($26.9M)

The Hydrogen Program includes research and validation projects for the development of safe, cost-effective hydrogen energy technologies that support and foster hydrogen energy as an integral part of the energy economy. To enable a future that includes hydrogen energy, four strategies are pursued that will provide benefits in efficiency, environment and economy. (1) Expand the use of hydrogen by working with industry, including hydrogen producers, to improve efficiency, lower emissions, and lower the cost of technologies that produce hydrogen from natural gas. (2) Work with fuel cell manufacturers to develop hydrogen-based electricity storage and generation systems that will enhance the introduction and penetration of distributed, renewables-based utility systems. (3) Continue to coordinate with the Department of Transportation and EERE's Office of Transportation Technologies to demonstrate safe and cost-effective fueling systems for hydrogen vehicles in urban non-attainment areas and to provide on-board hydrogen storage systems. (4) Work with the National Laboratories to lower the cost of technologies that produce hydrogen directly from sunlight and water. The Hydrogen program is divided into three activities: Core Research and Development ($14.8M); Technology Validation ($9.0M); and Analysis and Outreach ($3.1M).

In FY 2002 our emphasis in the Core Research and Development Program will be on thermal processes that improve the efficiency and lower the cost of fossil-based and biomass-based hydrogen production processes to achieve $12 - 15 per million Btu for (5000 psi) pressurized hydrogen when reformers are mass produced; on photolytic processes that support research into biological systems and advanced semi-conductors which will directly split water to hydrogen and oxygen; on storage activities to develop and demonstrate safe and cost-effective storage systems for use in stationary distributed electricity generation and for stationary and vehicle applications in urban non-attainment areas; and utilization which is developing a technology blue print for new building codes and equipment standards for hydrogen technologies. By 2005, we expect to meet key milestones for engineering validation of several reversible fuel cell systems.

We will perform Technology Validation activities that include installing and operating a biomass to hydrogen conversion system as well as installing and testing an integrated wind/reversible hydrogen fuel cell system incorporating hydrogen storage. An important outcome of these activities is to confirm their economic viability in remote and distributed applications. In order to understand the requirements and operation, by 2010, we expect to validate distributed hydrogen refueling systems for hydrogen electric vehicles in collaboration with state and local governments. The fueling system will show the use of high pressure storage systems. We will also explore hydrogen use in distributed energy systems.

Hydropower ($5.0M)

Working with industry and other Federal agencies, the Hydropower Program's R&D activities support the development of a new generation of more environmentally-friendly hydropower turbines. Current hydropower technology, while essentially emission-free, can have undesirable environmental effects, such as fish injury and mortality from passage through turbines, as well as detrimental changes in the quality of dissolved gases in downstream water. Advanced hydropower turbine technology could minimize these adverse effects and help preserve the Nation's ability to generate electricity from an important renewable resource. FY 2002 activities will focus on Biologically-Based Criteria Development, Advanced Turbine Pilot-Scale Testing, Low-Head/Low Power Testing and Mini-Hydro Research and Development.

Solar Energy Programs ($42.9M)

The FY 2002 funding request for the Solar Energy Programs (Concentrating Solar Power, Photovoltaics, and Solar Buildings) is $42.9M. The program supports R&D that improves the performance and reliability while reducing the cost of solar technologies that can harness the sun's energy. With their inherent flexibility and scalability, the solar programs support a tremendous range of applications including large-scale power production, on-site electricity generation, and thermal energy for space heating and hot water.

Concentrating Solar Power — $1.9M. This funding request provides for program close-out costs. After the installation and checkout of the 25 kW dish system at the University of Nevada has been completed, all program activities will be terminated.

Photovoltaics— $39.0M. The Photovoltaics program is divided into three activities: Fundamental Research($9.4M); Advanced Materials ($20.1M); and Technology Development ($9.5M).

Fundamental Research. Within this account we will continue research to identify efficiency-limiting defects and advance the fundamental understanding of both PV materials and devices using state-of-the-art characterization techniques. We will continue university and industrial research in response to competitive solicitation issued in FY 2000 for basic R&D on breakthrough, non-conventional PV technologies (Beyond the Horizon) and conduct research and analysis that improves the understanding of fundamental properties and performance of crystalline silicon, thin film materials and novel materials and cell devices. We will reduce High Performance Initiative to focus only on contracts that can lead to higher efficiency thin film technologies and will postpone contracts and research on 33 percent concentrator systems.

Advanced Materials. We will re-compete the Thin Film Partnership Program in FY 2002 and fund industry cost shared contracts that address near term advancements. Support will continue on high efficiency devices and silicon crystal growth methods but with a reduced emphasis. We will fully fund the 3-year cost shared contracts for a new competitive solicitation to develop in-situ process diagnostics and intelligent processing needed for integrated module manufacturing scale-up. All contracts will have 50 percent cost sharing. The Advanced Manufacturing R&D activity will focus on high throughput large area thin films and next generation high efficiency thin wafer silicon technologies.

Technology Development. All manufacturing R&D and PVMaT activities under Technology Development will be completed in FY 2001. These cost-shared contracts achieved manufacturing cost reductions of 50 percent from 1996 levels. More advanced R&D activities are being funded in Advanced Materials and Devices. The systems and reliability activity will refocus its efforts on the critical need to improve reliability of the entire PV system, including balance-of-system components such as inverters. This effort also supports development of standards and codes, and procedures for certifying performance of commercial systems. No funding is requested for the Million Solar Roofs program in FY 2002. Commitments for installation of nearly a million "roofs" have already been received. This activity will be privatized in FY 2002.

Solar Building Technology Research —$2.0M. In our Space Conditioning and Water Heating activity, we will build and field test prototypes of a low-cost solar water heater, utilizing newly-developed polymers, in collaboration with industrial partners.

Wind Energy Systems ($20.5M)

The FY 2002 funding request for the Wind Energy Systems Program is $20.5M. The program helps the United States attain the substantial economic, environmental, and energy security benefits of expanding the domestic and worldwide use of wind energy, and of fostering a world-class, domestic wind energy industry. The Program focuses on completing the research, testing, and field verification needed by U.S. industry to fully develop advanced wind energy technologies, and on coordinating with partners and stakeholders to overcome barriers to wind energy use. Over the last decade, wind has shown high promise for becoming a major supply of low cost, clean energy in the United States. However, wind is still contributing only a small fraction of its potential and faces many challenges to becoming a substantial contributor to U.S. energy supply, particularly in dynamic restructured markets for electric power. As a result of increased U.S. wind energy development, industry, states, and stakeholder partners are becoming more active in supporting activities to facilitate further introduction of wind energy. The Wind Energy program has three components: Applied Research ($8.4M); Turbine Research ($7.5M) and Cooperative Research and Testing ($4.6M).

Applied Research. Continue research efforts in wind turbine aerodynamics, structures, materials, advanced components, and wind characteristics to support development of new or improved tools for advanced wind energy system design and applications, with a focus on enabling low wind speed turbine technology. Performance measures in FY 2002 will include completion of one year of data collection under the Long-Term Inflow and Structures Test and completion of design code validation using wind tunnel test data obtained in FY 2000. Reduced funding for FY 2002 follows from completion of advanced control systems field testing and several activities for refinement and validation of design codes in FY 2001.

Wind Partnerships for Advanced Component Technologies (WindPACT). Conclude wind turbine system scaling analyses and prepare final reports. As a result of expanded industry interest and research capabilities, transition advanced drive train and rotor blade projects to industry partners. Prototype testing for a sub-scale advanced drive train system and proof of concept blade fabrication processes will commence at the end of FY 2002

Turbine Research. Our activities in the Next Generation Turbine research will focus on completing design and begin fabrication of final prototype turbines. Funding is decreased as industry partners begin assuming higher share of project costs. The Low Wind Speed Turbine activity is the follow on from the FY 2001 Advanced Turbine Concepts activity. In coordination with the outcome of the WindPACT project, we will complete Advanced Turbine Concepts studies initiated in FY 2001 to identify promising technology path(s) leading to cost-effective wind turbines for sites with annual average wind speeds of 13 miles per hour. Two industry partners will be competitively selected to continue WindPACT component technology research efforts and to commence a multi-year effort to develop cost-effective low wind speed turbines.

Cooperative Research and Testing. FY 2002 funding will support laboratory testing and design review services in support of the U.S. wind turbine certification agent. We will continue to operate the National Wind Technology Center facilities at the National Renewable Energy Laboratory, and provide testing support to industry. In our Regional Field Verification activities we will complete development activities and commence field operation of projects selected in FY 2001, and provide technical, data collection, analysis, and reporting support to cost-sharing project hosts. Project development reports will be completed by the end of FY 2002.

Electric Energy Systems and Storage ($51.7M)

The request is $51.7M, level with FY 2001 appropriations. The program is divided into three activities: High Temperature Superconducting R&D ($36.8M); Energy Storage Systems ($6.0M); and Transmission Reliability ($8.9M). The Electric Energy Systems and Storage programs conduct research and development of advanced technologies to enhance the reliability of electric power transmission and distribution and to significantly improve efficiency, reliability, capacity, and power quality of electric generation, delivery, and end-use in the United States. Energy Storage and Transmission Reliability program goals are to develop energy storage facilities with an energy density greater than 5kWh per square foot at a cost below $700/kWh; and improving the reliability of electric power generation and distribution system through the integration and interconnection of distributed energy resources (at least 20 percent of new installed capacity by 2012) and integrating real time measurement and control networks throughout the grid. The FY 2002 request is $51.7M, level with FY 2001 appropriations.

The successful, industry-led, Superconductivity Partnership Initiative supports aggressive projects to design advanced electrical applications such as generators, transformers, motors, transmission cables, current controllers, flywheel energy systems, and magnetic separation systems. The industry-led Second Generation Wire Development exploits breakthroughs at national laboratories that promise unprecedented current-carrying capacity in high-temperature superconducting wires. Several industry teams are now working with the national laboratories to scale-up the new discoveries. The strategic research component, led by the national laboratories, provides the underlying knowledge base needed for the success of these superconductivity projects. The goal of high-temperature superconductivity is to reduce energy losses by half and provide equipment half the size of current systems by 2010 through the use of high temperature superconducting wires to create super efficient generators, transformers, and transmission cables.

DOE's Energy Storage and Transmission Reliability are part of a portfolio of Distributed Energy Resources activities that work together to implement DER technology deployment strategies that address standards making, infrastructure, energy delivery, technical, institutional, and regulatory needs. Transmission Reliability research develops real-time measurement and control networks, and electric system models and tools. This research ensures reliable and efficient grid operations and markets while integrating distributed energy in the competitive marketplace. It also removes technical, regulatory and institutional barriers and develops interconnection standards for deployment of DER near the potential users. Energy Storage Systems funds the design of integrated systems, research on advanced storage components, and development of economic and performance models. The Department partners with EPRI, the National Rural Electric Cooperative Association (NRECA), the American Public Power Association (APPA), the electricity industry, National Laboratories and universities to implement research and development activities.

High Temperature Superconducting R&D. The High Temperature Superconductivity (HTS) R&D program investigates the properties of crystalline materials that become free of electrical resistance at the temperature of liquid nitrogen. The lack of electrical resistance makes possible electrical power systems, super-efficient generators, transformers, and transmission cables, that reduce energy losses by half and allow equipment to be half the size of present electrical systems. Electrical wires from high temperature superconductivity ceramic materials will carry 100 times the amount of electricity compared to the same diameter conventional copper wires. Three activities comprise the High Temperature Superconducting R&D program: Superconductivity Partnership Initiative; the Second Generation Wire Initiative; and Strategic Research.

The Superconductivity Partnership Initiative funding provides for field testing and evaluation of cost-shared, competitively selected, major projects with industry to develop electrical systems demonstrating advances in efficiency and reliability from use of the latest high temperature superconducting wire.

Energy Storage, together with other distributed energy resources, provides the high nines of reliability required by the digital economy, telecommunication, and high tech manufacturing. While today's grid can at best give 3 nines of reliability, energy storage provides seamless power during micro outages, voltage sags, and frequency disturbances. Such disturbances are estimated to cost U.S. industry up to $150 billion per year. Energy storage systems, backed up by distributed generation, are the cost effective way to provide required reliability for the consumer. FY 2002 funding of $5.9M is at last year's levels.

Transmission Reliability. Transmission Reliability will be implemented through National laboratory/electricity industry/ university partnerships to conduct research on the reliability of the Nation's electricity infrastructure. Power System Reliability will develop advanced transmission technologies that promote competitive markets, ensure system reliability, increase network capacity for large scale, long distance power transfers, and promote the large scale integration of distributed energy resources into power system operations and competitive electricity markets. FY 2002 funding of $8.9M is at last year's levels.

Renewable Support and Implementation ($9.5M)

The Renewable Support and Implementation line item is comprised of several programs submitted in prior year budgets as separate line items: Departmental Energy Management; International Renewable Energy Program; Renewable Energy Production Incentive Program; Renewable Indian Energy Resources; and Renewable Program Support. These programs collectively encourage the use of renewable energy technologies by state and local governmental entities, internationally in developing countries worldwide, non-profit electric cooperatives, residents in remote areas of the U.S. not served or under-served by the electric grid, and Native Americans both on Tribal lands and at Tribal colleges and universities. Renewable Support also includes activities which promote the use of renewable technologies, improved energy efficiency measures, and better management of utility costs at Department of Energy facilities throughout the country.

Departmental Energy Management Program (DEMP). The FY 2002 request is $1.0M. The Departmental Energy Management Program is administered by the Federal Energy Management Program's (FEMP) Departmental Utility and Energy Team (DUET). DUET targets FEMP services at DOE facilities to improve energy and water efficiency, promote renewable energy use, and manage utility costs in DOE's facilities and operations.

International Renewable Energy Program. Our FY 2002 request for the International Renewable Energy Program (IREP) is $2.5M. The program supports diplomatic and technical assistance efforts to encourage the use of renewable energy technologies in economies in transition and developing countries worldwide.

Renewable Energy Production Incentive. Our FY 2002 request for the Renewable Energy Production Incentive is $4.0M, equal to current levels. This program encourages state and local governmental entities (usually public power electric utilities) and non-profit electric cooperatives to acquire renewable energy generation resources by providing financial incentives comparable to production tax incentives or investment tax credits that are available to private sector power generators.

Renewable Indian Energy Resources. No funding is being requested for the Indian Renewable Energy Resources Program.

Renewable Program Support. The FY 2002 request is $2.0M. The Competitive Solicitation Program obtains, analyzes, and disseminates essential cost and operational information needed to improve the efficiency and effectiveness of renewable energy projects, as well as to remove the perceptions of risk in selecting renewable energy and hybrid renewable energy generation systems for use in the competitive power market. The Electricity Restructuring activity provides Federal and State officials unbiased technical assessments of utility restructuring issues relating to energy efficiency and renewable energy. As the only national effort, the mission of the restructuring program is to work with states and the electric power industry to either maintain or expand energy efficiency and renewable energy, whether in states that have chosen to restructure their electric markets, or those that have not.

National Renewable Energy Laboratory (NREL) ($5.0M)

The National Renewable Energy Laboratory (NREL) leads the nation toward a sustainable energy future by developing renewable energy technologies, improving energy efficiency, advancing related science, and engineering, and facilitating technology commercialization. NREL's research efforts cover nearly 50 areas of scientific investigation including photovoltaics, wind energy, biomass-derived fuels and chemicals, energy-efficient buildings, advanced vehicles, solar manufacturing, industrial processes, solar thermal systems, hydrogen fuel cells, superconductivity, geothermal, and waste-to-energy technologies. Many of NREL's research achievements have been ranked among the Nation's most significant technical innovations by R&D Magazine, Discover, and Popular Science.

The funds requested support NREL's infrastructure needs including necessary repairs, maintenance, calibration, equipment replacement, new construction, and facility modifications. These expenditures protect the Federal Government's investment and support of the domestic renewable energy industry. In addition, the FY 2002 budget request includes for the first time, facility project engineering design (PED) funding as directed in the FY 2001 Energy and Water Development conference report. The envisioned Science and Technology Facility in Golden, CO is intended to relieve overcrowding at NREL's current Solar Energy Research Facility (SERF). That structure was designed for 160 persons, but now is accommodating over 200 researchers A lack of space is limiting participation by visiting professionals, industrial partners, and students at SERF. This overcrowding is also damaging worker productivity and discouraging the retention of high quality staff.

Building Technology State and Community Programs

As living standards continue to increase, Americans demand more energy to power an ever increasing array of products and labor saving devices in our homes, schools, and workplaces. � In the U.S., buildings account for more than one-third of the annual energy consumption, including two-thirds of all electricity consumed.

Americans spend approximately $240 billion per year to heat, cool, light, and run equipment and appliances in residential and commercial buildings. Adoption of energy-efficient buildings technologies and practices resulting from EERE's buildings programs could save approximately 1 quadrillion Btus annually by 2010. The investment in these energy efficiency improvements are estimated to save approximately $6 billion annually by 2010.
Building energy efficiency programs address our Nation's escalating building energy consumption, while improving the office building environment and worker productivity, as well as the affordability of homes.

Building Research and Standards ($32.3M)

Building Research and Standards develops, implements, and coordinates R&D that improves the energy efficiency of building components and then uses system design and regulatory activities to integrate these components into building energy systems.

Buildings Research and Standards is comprised of three EERE programs: the Residential Buildings Integration Program, the Commercial Buildings Integration Program, and Equipment, Materials, and Tools Program. In addition, Technology Road Maps & Competitive R&D activities are used to inform and guide the three referenced programs.

The request for the Technology Road Maps and Competitive R&D program is $857,000. The implementation phase of existing roadmaps will continue to be coordinated with industry partners, and completed roadmaps for all areas will continue to be disseminated to participants, stakeholders, and the public.

In partnership with homebuilders, industry, States, and communities, the Residential Buildings Integration Program improves the energy efficiency in new and existing homes through R&D, demonstrations, and regulatory strategies. A significant element of the R&D program is making homes more energy efficient and environmentally sound at little or no additional cost. The request for the Residential Buildings Integration program is $7.5M. This program works with industry to jointly fund, develop, demonstrate, and deploy housing that integrates energy-efficient technologies. Building America will reduce the number of homes directly associated with the program from 1,500 to 850. The program will continue to support residential integration activities at a reduced level.

The request for the Commercial Buildings Integration program is $2.5M. This program works to realize energy-saving opportunities during the construction and major renovation of commercial buildings. Late in FY 2002, Commercial Buildings Integration will begin emulation of the public/private partnership successes of the residential buildings-oriented Building America Program. Accordingly, the Commercial Buildings Integration Program will work with competitively solicited industry groups on cost-shared projects that accelerate the development and adoption of new building technologies and practices. Regulatory activity will focus on the FY 2003 update of the International Energy Code Council's commercial building code. Research at National Laboratories and a number of demonstrations with the private sector will be reduced.

In collaboration with industry and other stakeholders, the Equipment, Materials, and Tools Program promotes the widespread adoption of energy-efficient products and technologies in both residential and commercial buildings through a balanced program of R&D and regulatory activities. The program also develops, promulgates, and enforces test procedures and energy conservation standards for residential appliances and certain commercial equipment, under the Energy Policy and Conservation Act, as amended.

The request for the Equipment, Materials, and Tools program is $19.7M. The program may delay some research efforts and can either delay rulemaking activities on certain products or develop standards on four products on a longer schedule.

Building Technology Assistance ($321.4M)

The Office of Building Technology Assistance includes the Weatherization Assistance Program, a Presidential Initiative, the State Energy Program, the Community Energy Program, and the Energy Star program. The FY 2002 request for the Weatherization Assistance Program is $273.0M — an increase of $120M over the FY 2001 enacted levels. The request for the State Energy Program is $38M.

The request for the Community Energy Program is $8.5M. The Community Energy Program helps communities, towns, and cities improve energy efficiency and sustainable building design and operations through three community-related activities: Rebuild America/Community Partnerships,Information Outreach, and Training Assistance State Building Code Professionals. The Community Energy Program results in energy savings, economic growth, more jobs and a better environment. At its reduced level, the program will continue to provide core service to existing community partnerships.

The request for the Energy Star Program is $2.0M. This program educates the public on the energy use of equipment, appliances, and buildings. The funds support the cooperative efforts with EPA to increase consumer awareness of benefits and cost savings of energy-efficient appliances and products and encourages consumers to retire inefficient appliances. We will continue to work toward our program goals of achieving 20 percent market share for Energy Star appliances and 65 percent market share for Energy Star windows.

Management and Planning ($15.1M)

The Office of Management and Planning provides the information, analyses, and personnel necessary to skillfully conduct the Building Sector program.

Industrial Technologies

By developing and adopting more energy-efficient technologies, industry can boost productivity and competitiveness, strengthen national energy partnership between industry and government provides the best strategy to align national energy objectives with the commercial interests of industry for mutual benefit. Through an innovative strategy known as "Industries of the Future", the Department helps industry develop and apply advanced, energy-efficient technologies and processes. The Department invests in pre-competitive and high-risk R&D that individual companies are unable to undertake without government support. By working with entire industries rather than individual companies, we maximize the energy benefits of technology investments and fosters the formation of public-private partnerships.

The Industries of the Future strategy is predicated on the assumption that industry is best qualified to identify its technology priorities. The strategy features three core components:

Industry leaders collaboratively define a vision, develop industry-wide long-term goals, and create technology roadmaps that articulate specific technology and research strategies to achieve the vision.
OIT issues competitive R&D solicitations in support of the roadmaps, requiring a 50 percent cost share from industry over the life of each project. OIT selects projects that address top industry needs, require government support, and help meet national energy goals.
OIT supports related programs that focus on crosscutting technologies, financial assistance, and technical system assessments that serve multiple energy-intensive industries.

Industries of the Future (Specific) ($46.4M)

The Industries of the Future (IOF) Specific Program develops and delivers advanced technologies to improve the energy efficiency and environmental performance of America's most energy-and waste-intensive industries. To provide the best value and optimum use of public investments, the IOF Specific Program focuses on nine major U.S. industries (aluminum, agriculture, chemicals, forest products, glass, metal casting, mining, steel, and petroleum) that account for roughly 75 percent of industrial energy use and over 75 percent of manufacturing wastes.

Funding for the Forest and Paper Products and Agricultural activities will be funded at FY 2001 levels. Reductions will be taken in aluminum, chemicals, glass, metalcasting, mining, and steel industries of the future. These programs will focus solely on developing next generation technologies. Promising R&D programs near completion will be completed and moved to industry. Longer term programs will be continued with a somewhat longer timeframe Activities in the petroleum industry and supporting activities will be terminated

Industries of the Future (Crosscutting) ($31.9M)

Industries of the Futures (Crosscutting) is comprised of three program areas: the Enabling Technologies Program, the Financial Assistance Program, and the Industrial Technology Assistance Program.

Enabling Technologies Program

The Enabling Technologies Program within the Industries of the Future initiative conducts cost-shared R&D on technologies with potential application across several OIT vision industries. The R&D areas are chosen through a strategic review process which identifies the technologies, practices, and needs that exist throughout industry that can be most cost-effectively leveraged. The program focuses on three areas that offer major improvements in energy efficiency and emissions reduction across all industries.

For our Enabling Technologies activities, we are requesting $14.8M. The advanced process heater will complete preliminary testing; the development of gasification technologies activities will be delayed.

Financial Assistance Program

The Financial Assistance Program helps independent inventors, small businesses, and industry who lack the funds and/or know-how to move promising energy-saving and energy production technologies from the research bench to the marketplace. Technologies face a tremendous barrier to acceptance unless this important and unique assistance is provided at the make-or-break intersection on the road to technology commercialization. The Financial Assistance Program provides critical financial assistance in the form of competitive grants to develop and deliver clean, energy-saving technologies; and leverage financial and non-financial resources in cooperation with industry. Our FY 2002 request is $5.1M. We do not expect to fund new I&I projects.

Technical Assistance

We are requesting $8.9M. Technical assistance will focus on plant-wide assessments, training, and recognition programs while continuing to provide at least half the number of industrial assessments for small and medium size companies.

And, for Technical/Program Management Support we are requesting $3.0M

Transportation Technologies

Transportation today accounts for 67 percent of the Nation's oil use, and our vehicles remain 95 percent dependent on a single fuel— petroleum. Transportation's need for oil has brought our country to the point that it uses 4.7 M more barrels of oil per day —just for cars and trucks — than it produces. Imports, currently 54 percent of our consumption, are at an all time-high and currently add an estimated $100 M per year to our balance of payments deficit. Working with partners in industry, research organizations, State governments, and other Federal agencies, the Department's Office of Transportation Technologies programs support research, development, and deployment programs which will reduce oil consumption by achieving: 1) significant improvements in vehicle fuel economy; and 2) displacement of oil by other fuels which are domestic, clean, and cost-competitive. For its transportation programs, the Department is requesting $197.7 M. Programs include: Vehicle Technologies R&D, funded at $126.4 M, Fuels Utilization R&D at $20.9 M, Materials Technologies at $30.3 M, and Technology Deployment at $9.8 M.

The Office of Transportation Technologies' investment focuses on areas that would not be pursued by industry alone due to high risk and uncertain outcomes. OTT's work is primarily focused on research and development of advanced technologies, with priorities established in conjunction with cost-sharing partners, primarily industry. The work is accomplished by numerous organizations, including industry, government and university laboratories, it supports such initiatives as the Partnership for a New Generation of Vehicles (PNGV) and the 21st Century Truck Program.

Amendment to the Partnership for a New Generation of Vehicles (PNGV).

The Partnership for a New Generation of Vehicles has established a highly effective model for the way in which government, industry and academia can work together to address challenges of national importance. Some of the technologies developed or enhanced by the partnership are already appearing in production, improving the fuel efficiency of selected models of today's cars. In addition, Hybrid-electric drive options have been announced by each of the three automakers for production in the 2003-2004 time frame Dodge Durango in 2003, Ford Escape in 2003, Chevrolet Silverado in 2004, and Ford Explorer in late 2004. In general, these configurations will deliver equal or better performance while also improving fuel economy by between 15 to 40 percent. What this means to the individual consumer is an average of 25 percent reduction in fuel use, allowing one-quarter fewer trips to the gas station and reduced fuel costs.

In making these production announcements, industry has exceeded expectations at the inception of the Partnership. For that reason, and the realization that there have been fundamental changes in the passenger vehicle market over the past 7 years, we believe it is time to streamline and refocus this program to give greater flexibility to the automakers and even greater benefits to the taxpayer. The current program attempts to balance a portfolio of near-, mid-, and long-term technologies. In agreement with our industry partners, we will shift emphasis to a more long-term research portfolio that is aimed at overcoming fundamental obstacles to the vehicle technologies that offer the highest potential for significant benefits to this country. These technologies, for example, include fuel cells, advanced power electronics, batteries for power storage and lightweight carbon fiber materials. Considering these changes, the Administration is expected to submit a budget amendment that will reduce DOE's portion of the federal investment in the PNGV program by $39.165M.

21st Century Truck Program.

The 21st Century Truck Program is a relatively new multi-agency partnership with sixteen companies from the truck manufacturing and supplier industries aimed at developing technologies needed to produce trucks and buses with higher fuel economy, reduced emissions, and improved safety. The Department of Energy has been a leader in planning and research related to this effort. The partnership is proceeding well, with over 65 scientists and engineers from industry and government having completed an extensive technical plan that will guide the development and implementation of this program. The Administration proposes $70.6 M to continue the Department's truck-related R&D.

Vehicle Technologies R&D ($126.4M)

The Vehicle Technologies research and development (R& D) program supports work on advanced vehicle technologies that will produce dramatic improvements in fuel economy for automobiles, and light trucks and heavy trucks, without sacrificing safety, environmental performance, and affordability.

Vehicle Technologies R& D includes five vehicle technology development topics: Hybrid Systems R& D, Fuel Cell R& D, Advanced Combustion Engine R& D, Electric Vehicle R& D, and Heavy Vehicle Systems R& D. In addition, the Cooperative Automotive Research for Advanced Technology (CARAT) and the Graduate Automotive Technology Education (GATE) programs support these topics.

Hybrid Systems R& D ($37.8M)
The program develops advanced propulsion and ancillary system components and tests and validates them in a vehicle context. It includes development of advanced power electronics, high power energy storage devices, and hybrid propulsion system components for light duty as well as heavy duty vehicles. Through a combination of component and vehicle testing and computer simulation, the program also sets performance targets for component development programs and validates the achievement of the vehicle- level OTT objectives. All activities are system driven and barrier focused to ensure maximum benefit from the R& D investment and development of hybrid systems technologies that are practical for automobile and heavy vehicle applications.

Fuel Cells R& D ($41.9)
The program develops highly- efficient, low- or zero- emission, cost- competitive automotive fuel cell power system technologies that operate on conventional and alternative fuels. The program integrates efforts of the automotive industry, fuel cell and fuel processor developers, national laboratories, universities, and fuel suppliers in a customer- focused national program to develop more fuel-efficient, cleaner, and cost- effective vehicle power systems that meet the most stringent emission standards while retaining the same performance as today's vehicles.

Advanced Combustion Engine R& D ($37.6M)
The program develops technologies that will significantly improve the fuel efficiency of conventional piston engines while cost- effectively meeting projected emissions regulations. The primary focus is on developing and validating compression- ignition, direct- injection (CIDI) engine technologies that will produce significant improvements in fuel economy for automobiles and SUVs, as well as light and heavy trucks, without sacrificing safety, environmental performance, or affordability. Because of the stringent emissions regulations proposed for particulates and nitrogen oxides, a secondary focus will be to enhance the performance of spark- ignition, direct- injection (SIDI) technology as a power system alternative that will contribute to achievement of the aggressive fuel economy goals. The program collaborates with industry to develop technical roadmaps and establish research priorities. Projects aimed at overcoming the technical barriers to the commercialization of high- payoff technologies are then initiated. Most R& D is performed through co- funded government/ industry partnerships that ensure that results are practical for vehicle applications and that a maximum benefit is achieved from the R& D investment.

Electric Vehicles R& D ($3.5M)
The program develops and validates advanced electric vehicle battery technologies that will enable full- range electric vehicles and facilitate their commercial viability. Advanced lithium batteries are being developed under a cooperative agreement with United States Advanced Battery Consortium (USABC). This work is supported by national laboratories and universities funded directly by DOE. Exploratory work on new electrode and electrolyte materials is conducted by the national laboratories and selected university researchers under Exploratory Technology Research.

Heavy Vehicle Systems R& D ($5.9M)
The program sets performance targets for components and subsystems in the context of the heavy vehicle as an integrated system, and validates achievements associated with vehicle- level OUT objectives. The program focuses on reducing parasitic energy losses, such as aerodynamic drag, rolling resistance, friction/ wear and lubrication, and undercook thermal management, that are common in heavy vehicles. By collaborating with industry to develop technical roadmap and set research priorities, the program identifies R& D which will overcome barriers to the commercialization of high- payoff technologies.

Biofuels ($44.8M)

The Ethanol Program funds research, development, and demonstration of technology to enable and support the expansion of an indigenous, integrated biomass-based industry that will reduce reliance on imported fuels; promote rural economic development; and provide for productive utilization of agricultural residues and municipal solid wastes. Ethanol activities are divided into five activities: Ethanol Production ($34.6M); Renewable Diesel Alternatives ($750,000); Feedstock Production ($3.5M); Regional Biomass Energy Program ($2.0M) and Integrated Bioenergy Research ($2.5M).

Ethanol Production.The Ethanol Program has identified ethanol as the most promising near-term/mid-term liquid transportation fuels option. In the next several years, we expect industry to deploy ethanol by using under-utilized agricultural components (e.g., corn fiber and stover), because they are readily available as low-cost feedstock materials. Energy crops are being developed for the long-term, as demand increases and as scientific and engineering advances make the growing, collection, and conversion of these feedstocks more affordable. We believe that many of the advances in reducing ethanol production costs depend on the development of cost-effective enzyme technology to break down cellulose to simple sugars. These sugars can be converted to ethanol and/or to other chemicals (lactic acid and levulinic acid, among others), which can be used in an integrated biorefinery of the future. Ethanol production activities are divided into Advanced Fermentation, Advanced Cellulase R&D; Pretreatment R&D; and Cellulose to Ethanol production facilities.

Our Advanced Fermentation activities collaborate with industry and academia to develop organism platforms with increased stability, robustness, and ability to ferment mixed sugars from cellulosic wastes, agricultural residues, and energy crops such as switchgrass, and to lower the cost of ethanol production from biomass. Increased funding of $2,000,000 will initiate yeast platform work by developing advanced genetic engineering tools and begin nine genetic manipulation of promising yeast strains. Performance will be measured by developing a yeast that can ferment the biomass-derived sugars, glucose, arabinose and xylose to meet cost goals for ethanol low blend markets. This yeast can also be the basis for the production of other high-value chemicals.

Our Cellulose to Ethanol production facilities effort will continue to support partnerships to demonstrate cost-effective conversion of corn stalks to ethanol. The use of corn fiber for ethanol production offers an opportunity for integrating cellulosic ethanol into existing commercial corn-derived facilities. Competitive solicitations will be conducted to support the integration of cellulosic conversion processes with existing commercial facilities. Performance will be measured by demonstrating feasibility of commercially producing ethanol and co-products from corn fiber stream, in partnership with a major ethanol producer. Decreased funding will reduce the number and require higher cost share by industry partners, in order to focus on core R&D (Advanced Organism R&D, Advanced Cellulase R&D, Pretreatment R&D) and integrated process testing.

Pretreatment R&D: Increased funding of $2,400,000 in FY 2002 will focus on developing and understanding fundamental principles of biomass depolymerizations, in collaboration with academia and industry, to aid in developing novel pretreatment systems to improve process efficiency and reduce costs.

The Feedstock Development Centers program conducts research and development of model energy crops and residues at integrated biomass feedstock development centers in the Southeast and Midwest/Plains States. Projects include residue management, breeding, physiology, advanced biotechnology, carbon sequestration and storage. The funding decrease eliminates research and development of model tree crops such as hybrid poplar and willow at the integrated biomass feedstock development centers, consistent with analyses indicating that agricultural residues and perennial grasses have better potential as feedstocks for ethanol and biobased chemicals production in the near and mid-term.

Fuels Utilization R&D ($20.9M)

The program identifies and develops new fuel options that will enable conventional and advanced propulsion vehicles to meet increasingly challenging performance, fuel-efficiency, and emissions targets. The EPA Tier 2 emissions standards for light-duty vehicles, the Consent Decree to be implemented in 2002, and the EPA heavy-duty engine emission standards affecting heavy-duty trucks require advanced fuel formulations to enable these systems to meet emission levels while maintaining fuel efficiency. Activities within the Fuels Utilization R&D program are divided into Advanced Petroleum Based Fuels, for which we are requesting $11.5M, level funding from FY 2001; and Alternative Fuels, for which we are requesting $11.9M, also level funding.

Technology Deployment ($9.8M)

Transportation Technologies deployment programs accelerate the adoption and use of alternative-fuel and advanced-technology vehicles to help meet national energy and environmental goals.

The Department's deployment efforts logically follow and complement successful technology development by industry and government. For the period FY 2002 through FY 2006, the program will promote both alternative- fuel vehicles (AFVs) and advanced-technology vehicles (ATVs). To help build consumer confidence in these technologies and encourage private sector investment in supporting infrastructure, the program will: forge new partnerships and nurture existing partnerships with fleet owners, fuel providers, vehicle manufacturers, and State and local governments; provide current, accurate, reliable information on all types of alternative fuels and vehicles; pursue rigorous, structured programs to test and evaluate cars and trucks that use alternative fuels and advanced technologies; implement the alternative fuel requirements of the Energy Policy Act; promote consumer acceptance of advanced technology cars and trucks with significantly improved fuel economy; and work with industry and universities to sponsor advanced vehicle competitions that push the technology envelope and expose numerous people, particularly future vehicle engineers, to these technologies. These deployment programs will help ensure that advanced transportation technologies developed by OUT will achieve sufficient market share to provide significant energy and environmental benefits.

Management and Planning ($10.2M)

For Management and Planning, we are requesting $10.2 M, an increase of $1.0 M above FY 2001 levels.

Policy and Management

Support for EERE Policy and Management comes from two budget accounts: Policy and Management in the Interior appropriations and Program Direction in Energy and Water Development. Program Direction provides the Federal staffing resources and associated funding to support the management and oversight of the Solar and Renewable Energy Programs. This activity includes all funding for support service contractors, equipment, travel, crosscutting activities, and Assistant Secretary initiatives. Program Direction encompasses two principal activities: 1)Headquarters executive and program management; and 2) program operations at the Golden Field Office. We have requested $19.2M for this activity.

Our FY 2002 request for Energy Conservation Policy and Management is $40.1M. The Policy and Management activity supports of the Office of Energy Efficiency and Renewable Energy through analysis, information, executive management, planning and budget activities. The Office also provides support for the Golden Field Office and six Regional Offices throughout the United States.

Mr. Chairman, I will be happy to respond to any questions you may have.