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and Health program, which increases by almost 95 percent over the FY 1986 level, will support the key elements of the Department's long-range plan which provides for a strong emphasis on environmental and safety matters at DOE facilities.

The Department is conducting a baseline survey of all facilities to identify existing areas of environmental risk. Results from the survey will be used to prioritize areas requiring corrective action. We are committed to developing standards for environmentally sound operations at all DOE facilities.

OTHER ENERGY RESEARCH

This category includes Magnetic Fusion, Biological and Environmental Research, and Basic Energy Sciences.

The Magnetic Fusion budget of $333.0 million in FY 1987 is about 9 percent below FY 1986. Our focus this year will be on the development of the toroidal magnetic confinement system. The program has been structured to maintain the highest priority tasks, improve the cost effectiveness of facility operations, and increase the use of international collaboration. We have always stressed international collaboration in fusion research, and will be emphasizing this even more in light of the agreements reached at the Geneva Summit.

We are proposing a budget of $197 million for Biological and Environmental Research in FY 1987, which is an increase of 9 percent over FY 1986. This program represents the Nation's only long-term research effort specifically focused on energy-related health and environmental issues. The FY 1987 program will continue its focus on understanding the long-term health and environmental effects of radiation and energy-related chemicals. This program also performs research on such issues as acid rain and the so-called "Greenhouse effect." The mission of the Basic Energy Sciences (BES) program is to perform generic, long-range, energy-related research in both nuclear and non-nuclear fields. The FY 1987 budget request of $441 million is slightly above last year's effort. In conducting this program, we support energy-related research and operate research facilities in the physical and biological sciences, engineering, applied mathematics, and geosciences. In FY 1987 funds will continue the construction of the Center for Advanced Materials at the Lawrence Berkeley Laboratory, and support

upgrades of the National Synchrotron Light Source at the Brook haven National Laboratory and the Synchrotron Radiation Laboratory at the Stanford Linear Accelerator Center.

FOSSIL ENERGY

The Fossil Energy program is directed at establishing the scientific and engineering foundation to support private sector efforts to develop and deploy fossil fuel technologies. The budget request of $150 million concentrates adequate resources on high priority activities in coal, petroleum and gas technologies. Clean use of coal is the principal focus of our fossil program, and we will continue work in liquefaction, gasification, combustion systems, fuel cells, heat engines, and techniques for the direct combustion of coal in an environmentally sound manner.

The budget request is divided into three functional elements: Technology base development funds will provide direct support for basic, fundamental and

crosscutting research through contracts and research grants directed principally

to national laboratories, Energy Technology Centers, and universities. Applied research and development activities will be funded with industry using various contractual instruments. Finally, a cooperative research and development venture pool of $12.5 million will be established to fund applied research and development joint ventures with industry consortia. It is expected that the Department would take minority positions in these ventures, which would leverage scarce Federal resources and provide for more active technology transfer..

In addition to activities supported by the budget request, the Department will

begin a 3 year Clean Coal Technology program this year, utilizing $397.6 million of previously appropriated funds. A solicitation for competitive proposals was issued on February 17, 1986. Projects will be cost-shared up to 50 percent by the Federal government, and will be selected by August 1, 1986.

RENEWABLE ENERGY

The focus of the Solar and Other Renewable Energy program in FY 1987 is on sup

porting research and development that will strengthen the technology base on

which industry can draw in developing future new products and processes for the

commercial market. The program supports activities ranging from basic research in universities and national laboratories to applied research and development

and proof-of-concept projects in industrial firms.

Our budget request of $92 million continues program activities in each major solar and renewable technology area, but at levels below FY 1986. Reductions proposed in the 1987 budget will limit support to only the highest priority activities. We are also pursuing a new funding approach for applied, but precompetitive, technology development involving partnerships with industry. Cooperative research and development ventures will be investigated, and

expressions of interest will be solicited from industry. We believe that the use of cooperative research and development ventures will be an effective method of leveraging limited Federal resources, and has the additional advantage of promoting more effective technology transfer to the private sector.

CONSERVATION

The Department views conservation as an energy resource and its practice has

made important contributions to the Nation's improved energy posture. The emphasis of the Energy Conservation Research and Development program is to assist the private sector by conducting research targeted at expanding the technology base upon which industry can draw in developing new products and processes for the marketplace. Although the FY 1987 budget request of $71 million is substantially less than this year's level, we believe that we are directing adequate funding to the highest priority activities.

We will continue efforts in all of our current research and development areas such as buildings and community systems, industrial and transportation conservation, and advanced concepts in energy conversion and utilization. In addition, the new cooperative research and development approach will be explored and expressions of interest will be solicited from the private sector regarding

their participation.

The budget request proposes no further Federal support for the Conservation Grants programs, except for a small amount in FY. 1987 to fund the orderly closeout of Federal responsibilities. We believe that the States should assume responsibility for these activities. They will be able to make use of very

large sums specifically designated for conservation and other energy-related activities which will be made available to them in restitution for oil pricing and allocation violations. Continued use of appropriated Federal funds for these programs is, therefore, no longer necessary.

NUCLEAR ENERGY

The emphasis of the Department's Nuclear Energy programs in FY 1987 is being shifted to ensure that nuclear energy contributes to civilian needs for a balanced and secure domestic energy base as well as emerging military needs to meet national security objectives. The budget request of $333 million, is slightly below the FY 1986 level. However, we have structured a program to coincide with the anticipated timing for commercial deployment of advanced reactors beyond the light water reactor, and which also meets increasing space and defense nuclear energy requirements. This essential program fits within the limited resources available during times of budgetary constraints.

The Light Water Reactor program will continue with emphasis on supporting a

process leading to enhanced safety, rationalized licensing, and certification of advanced designs. These cost-shared activities are closely coordinated with industry and complement industry's own efforts.

The primary emphasis in advanced reactor research and development is to support national security requirements, including the Strategic Defense Initiative. We expect that benefits will accrue from this research and development that can be applied to future commercial, reactor development efforts.

DEFENSE ACTIVITIES

The Department's FY 1987 budget request for Atomic Energy Defense Activities is

$8.2 billion. The request meets the requirements of the Department of Defense

for weapons production and deliveries. It also includes research on new and improved weapons, testing, production of special nuclear materials, and Naval reactors development.

Weapons research, development, and testing is a large portion of the defense programs budget at $2.1 billion. This includes weapons design, advanced weapon

technology, support for the Strategic Defense Initiative, the testing of new weapons, and monitoring and testing of the nuclear weapons stockpile to assure

continued reliability and effectiveness.

Weapons production and the production of special nuclear materials are funded at $2.5 bilion and $2.0 billion, respectively. The Department's defense produce tion activities respond to the requirements of the Defense Department and the need to modernize the Nation's defense force structure. In FY 1987 we will have eight weapons in production and pre-production efforts will be conducted on

another 11 systems.

Within the Atomic Energy Defense appropriation, we also fund the Naval Reactors

Development program which designs, develops, tests, and ultimately disposes of naval nuclear propulsion reactor components and cores. The FY 1987 budget is $594 million, up from $536 million in FY 1986. This increase is due primarily to increased research and development on an Advanced Fleet Reactor and for increased servicing requirements for the eight land-based prototype reactors.

WASTE ACTIVITIES

The safe management and disposal of civilian and defense nuclear waste and cleanup of contaminated facilities have long been prominent elements of the Department's nuclear and defense programs. These programs involve various types of high and low-level waste originating from civilian and defense sources. The budget request for each of these programs has increased in FY 1987.

The Nuclear Waste Fund activities are budgeted at $769 million, a significant increase over FY 1986's $499 million. These funds are directed toward disposal of spent nuclear fuel and high-level radioactive waste in mined, geologic repositories, and the study of monitored retrievable storage.

The Fund is financed by fees collected from owners and generators of spent fuel high-level waste. The increased FY 1987 request will provide for extensive site characterization, continued exploratory shaft design and construction, and intensive engineering tests and analyses required for the first repository. The program is progressing toward initial operation in 1998. The FY 1987 budget also provides support for the continuation of preliminary field investigations

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