reduced requirements, delaying the nuclear and non-nuclear consolidation reconfiguration initiatives, reducing laboratory nuclear weapons research and development; and transitioning K-Reactor to a cold standby status. Job dislocations resulting from these reductions will be offset by a $100 million comprehensive worker retraining and assistance program that results in a net reduction of $1.25 billion in the FY 1994 National Defense Programs budget request.

The Coal Research and Development Program has narrowed its focus to concentrate largely on further advances in efficiency and environmental performance for coal-based electric power systems. Of the $141.3 million requested for coal research and development, $92.0 million would be used to continue development of advanced, high efficiency, ultra-clean power systems such as pressurized fluidized bed combustion; low emission boiler systems; integrated gasification combined cycle; and indirectly fired cycles; in addition to supporting research and development on improved coal cleaning, gas cleanup, and other pollution control technologies. Another $26.5 million would go to more fundamental, crosscutting research and technology development that can foster even cleaner and more efficient technologies. Programs that have completed their development phases, such as magnetohydrodynamics and coal-fired heat engines are being phased out. Programs with very long-term market potential, such as coal liquefaction, are being scaled back. The more focused effort in FY 1994 will result in a savings of approximately $47.0 million from the FY 1993 appropriation.

The FY 1994 budget request for the Nuclear Advanced Reactor Program eliminates

the research and development funding support and related facility funding for the liquid metal and the high-temperature gas-cooled reactors, which have no near-term commercial application. Included, however, are the necessary funds for termination costs as well as for safety-related activities that are required to place the test facilities in a safe shutdown condition. Actinide recycle research and the facilities operation to support this research will continue, to allow demonstration of its nuclear waste management potential.

DOE's Uranium Enrichment Program will be conducted by a new, wholly-owned government corporation, to be known as the U.S. Enrichment Corporation, as of July 1, 1993 as required by the Energy Policy Act. The U.S. Enrichment Corporation will be required to operate as a commercial business enterprise on a profitable and efficient basis. The estimated savings are $1.8 billion over five years. The Administration is also proposing to speed up the purchase of enriched uranium from the republics of the former Soviet Union in furtherance of our nuclear non-proliferation policies.

The Federal government owns and operates five Power Marketing Administrations (PMAs) which sell electric power generated at 123 hydroelectric dams across the country. Congress intended that the full cost of the power portions of these facilities be repaid by power customers. Revenues from power sales are used to repay the power portions of these federal investments. The FY 1994 budget proposes that $100.0 million of additional receipts will be generated by the PMAs annually, beginning in FY 1996. These revenues will be derived by shifting PMA debt amortization from the current flexible basis to a straightline basis and by reselling power that is saved through conservation

initiatives.

The Strategic Petroleum Reserve currently contains over 577 million barrels of oil. The Administration proposal is to reduce the fill rate from 34,000 barrels of oil per day to 13,300 barrels per day.

The Administration is committed to the development of the Superconducting Super Collider as a major contribution to scientific information for the future. The Administration believes, however, that in order to ensure that all of the components of this project are technologically effective, and that adequate managerial controls are in place, the project schedule should be extended by three years to 2002. The FY 1994 budget request is $640 million.

BUDGET SUMMARY

The budget request of $19.6 billion is about three percent over the FY 1993 funding level of $19.0 billion. Funding increases for energy-related activities, environmental restoration and waste management, and science and technology programs more than offset a major decrease in funding for national defense.

ENERGY-RELATED ACTIVITIES

The increase in funding for Energy-Related Activities is due to major new investments in energy efficiency and renewable energy programs and additional requirements for the Clean Coal Technology program. These increases more than

offset decreases to Nuclear Energy and the expense reductions and revenue increases of the Power Marketing Administrations. Support for high-payoff research and development technologies emphasized in the Energy Policy Act of 1992 is strong, with $116.0 million in increased funding for energy efficiency and solar and renewable energy technologies related directly to Energy Policy Act initiatives.

Energy conservation and efficiency improvements in homes, commercial

buildings, transportation, and industry can contribute significantly to offsetting increased energy demand. In addition, reducing energy consumption in Federal facilities and in low-income homes are major themes of the Administration. The FY 1994 budget of $788.8 million for Energy Efficiency activities is 35 percent higher than the FY 1993 appropriations. This growth reflects the Administration's commitment to an aggressive program of research and development in promising technology areas, such as efficiency in the buildings, industry, transportation and utility sectors of the economy, and to providing needed technical and financial assistance in these areas to the States and to the public.

The Federal government is the largest single user of energy in the Nation, spending almost $11.3 billion annually in energy costs. Reducing these costs is a major Presidential initiative, and additional funding for both the Department's own In-House Energy Management Program and the Federal Energy Management Program, which the Department manages for other agencies, is included in the FY 1993 stimulus package and the FY 1994-1998 investment package.

In the Transportation sector, the Department continues to support the U.S. Advanced Battery Consortium (USABC) in FY 1994. This increased budget of $40.7 million reflects the rapidly increasing battery consortium activities aimed at achieving commercialization of advanced battery technologies by the mid-1990s. It also follows the initiative taken by the major U.S. automakers, who formed the USABC in FY 1991.

The Department continues to purchase a variety of alternative-fueled vehicles (AFVS) for placement in the Federal fleet and for data-gathering. The Alternative Fuel Vehicle effort is part of the Department's FY 1993 stimulus package and the FY 1994-1998 investment initiatives. This initiative provides $18.0 million in FY 1994 and $30.0 million each following year through FY 1998 for the purchase and/or conversion of petroleum based gasoline powered motor vehicles to alternatively-fueled vehicles for the Federal fleet. Approximately one-half of these purchases/conversions will utilize natural gas. The proposed funding of $34.5 million in FY 1994 will allow the Federal government to purchase at least 7500 AFVs and continue other light and heavy duty vehicle demonstration programs to help introduce AFVs into the marketplace.

The FY 1994 request for conservation grants to States is 31 percent above the amount enacted in FY 1993. The Weatherization grant program provides funds to States to help pay for home weatherization improvements for low-income citizens. The proposed initiative of increased funding of $60.0 million in FY 1994 and $100.0 million per year through FY 1998 would be distributed differently than the typical "formula grants" in order to increase the