Testimony of Dr. Robert K. Dixon
Deputy Assistant Secretary
Office of Power Technologies
Energy Efficiency and Renewable Energy
U. S. Department of Energy
before the
Subcommittee on Energy and Water Development
Committee on Appropriations
U.S. House of Representatives
May 10, 2001
Chairman Domenici, Senator Reid 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 two Administration themes: first, enhancing energy security -- decreasing US reliance on oil imports by increasing technology efficiencies and by increasing domestic renewable energy supplies; and second, enhancing electricity reliability -- ensuring grid reliability and advancing small-scale, on-site power generation. 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.
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 (within the Interior and Related Agencies account) and increases several renewable activities. More detailed information is included in the following budget table.
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 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.
FY 2002 Budget Request
The following table provides details of our FY 2002 budget request. The sections following the table describe ongoing programs and our FY 2002 budget request for renewable energy resources and program direction.
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 |
| Total, Renewable Energy Resources | 373,179 | 237,477 | 39,176 | 276,653 |
1 The amendment is expected to be submitted by the Administration in the next several weeks.
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 ($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 Fermenation; Advanced Cellulase R&D; Pretreatment R&D; and Cellulose to Ethanol production facilities.
Our Advanced Fermenation 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.
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.
Program Direction ($19.2M)
Program Direction provides the Federal staffing resources and associated funding to support the management and oversight of the Renewable Energy Resources 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.
Mr. Chairman, I will be happy to respond to any questions you may have.