Appendix - Department of Energy

[Appendix]
[Detailed Budget Estimates by Agency]
[Department of Energy]
[From the U.S. Government Printing Office, www.gpo.gov]

THE BUDGET FOR FISCAL YEAR 1999

[[Page 359]]

DEPARTMENT OF ENERGY

ATOMIC ENERGY DEFENSE ACTIVITIES

Federal Funds

General and special funds:

Weapons Activities

For Department of Energy expenses, including the purchase,
construction and acquisition of plant and capital equipment and other
incidental expenses necessary for atomic energy defense weapons
activities in carrying out the purposes of the Department of Energy
Organization Act (42 U.S.C. 7101 et seq.), including the acquisition or
condemnation of any real property or any facility or for plant or
facility acquisition, construction, or expansion; the purchase of one
fixed wing aircraft; and the purchase of passenger motor vehicles (not
to exceed [70] 32 for replacement only, and one bus), [$4,146,692,000,]
to become available on October 1 of the year specified and to remain
available until expended: [Provided, That funding for any ballistic
missile defense program undertaken by the Department of Energy for the
Department of Defense shall be provided by the Department of Defense
according to procedures established for Work for Others by the
Department of Energy] fiscal year 1999, $4,500,000,000; fiscal year
2000, $518,674,000; fiscal year 2001, $251,096,000; fiscal year 2002,
$145,997,000; fiscal year 2003, $57,804,000; fiscal year 2004,
$32,318,000; fiscal year 2005, $4,451,000; and fiscal year 2006,
$1,704,000. (Energy and Water Development Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Stockpile stewardship........... 1,656 1,864 2,188
00.04 Stockpile management............ 1,916 2,069 2,051
00.06 Program direction............... 309 271 261
--------- --------- ----------
00.91 Total direct program.......... 3,881 4,204 4,500
09.01 Reimbursable program.............. 956 1,119 1,119
--------- --------- ----------
10.00 Total obligations............... 4,837 5,323 5,619
----------------------------------------------------------------------------

Budgetary resources available for obligation:
Unobligated balance available, start of year:

Uninvested:
21.40 Uninvested.................... 25 58
21.40 Uninvested.................... 358 544 544
--------- --------- ----------
21.99 Total unobligated balance,
start of year............... 383 602 544
22.00 New budget authority (gross)...... 5,052 5,266 5,619
22.10 Resources available from
recoveries of prior year
obligations..................... 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,438 5,868 6,163
23.95 New obligations................... -4,837 -5,323 -5,619
Unobligated balance available, end of year:

Uninvested:
24.40 Uninvested.................... 58
24.40 Uninvested.................... 544 544 544
--------- --------- ----------
24.99 Total unobligated balance, end
of year....................... 602 544 544
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 3,911 4,147 4,500
Permanent:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1,141 1,119 1,119
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 5,052 5,266 5,619
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 1,271 1,012 1,137
73.10 New obligations................... 4,837 5,323 5,619
73.20 Total outlays (gross)............. -5,092 -5,198 -5,518
73.31 Obligated balance transferred to
other accounts.................. -1
73.45 Adjustments in unexpired accounts. -3
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 1,012 1,137 1,238
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 2,542 2,696 2,925
86.93 Outlays from current balances..... 1,409 1,383 1,474
86.97 Outlays from new permanent
authority....................... 1,141 1,119 1,119
--------- --------- ----------
87.00 Total outlays (gross)........... 5,092 5,198 5,518
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.40 Non-Federal sources........... -171 -113 -113
88.45 Offsetting governmental
collections................. -970 -1,006 -1,006
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,141 -1,119 -1,119
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3,911 4,147 4,500
90.00 Outlays........................... 3,951 4,079 4,399
---------------------------------------------------------------------------

Weapons activities.--This program includes the following activities:
Stockpile Stewardship.--This activity provides for the research,
development, and engineering activities to support the safety and
reliability of the nuclear weapons stockpile, without underground
nuclear testing, through a science-based Stockpile Stewardship
program. The core stewardship program supports Stockpile Stewardship
by maintaining core competencies at the weapons laboratories and the
Nevada Test Site, and through research on enhanced safety and
reliability of the enduring stockpile and dismantlement techniques.
In addition, the core stewardship program maintains the capability
to execute an underground nuclear test if directed by the President.
Research and development on inertial confinement fusion is also
included and the transfer of nonsensitive Defense Programs' funded
technology to the private sector is promoted.
Stockpile Management.--This activity provides for the
maintenance of the U.S. nuclear weapons stockpile, capabilities to
modify or produce new weapons if required, lifetime surveillance of
the stockpile, and retirement and disposal of weapons and weapon
components. The Stockpile Management program also supports
activities that include maintenance of technical and operational
capabilities for responding to nuclear/radiological accidents and
incidents worldwide. This program also provides for nuclear
materials surveillance for storage, handling, shipping,
safeguarding, control and accountability, and disposition for
defense programs nuclear materials located at Defense Programs'
facilities.
Within the Stockpile Management Program, the Department has been
pursuing a dual track strategy to produce tritium for the Nation's
enduring nuclear weapons stockpile. It plans to select a primary and
backup option in 1998. The budget includes $157 million to pursue
the option that is selected. If the Department selects the purchase
of irradiation services from commercial light water reactors as the
primary option, it will be able to meet current requirements within
the funds available. If the Department selects accelerator
production of tritium as the primary option, it will need to seek
relief from the current target date for initiating new tritium
production or seek additional funding.

[[Page 360]]

Weapons Program Direction.--This activity provides personnel and
contractual services for the Federal management, direction, and the
administration of selected Defense Programs' missions.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 111 124 110
11.3 Other than full-time permanent 2 2 2
11.5 Other personnel compensation.. 6 6 6
--------- --------- ----------
11.9 Total personnel compensation 119 132 118
12.1 Civilian personnel benefits..... 25 22 23
13.0 Benefits for former personnel... 1 1 1
21.0 Travel and transportation of
persons....................... 8 7 10
22.0 Transportation of things........ 1 1
23.2 Rental payments to others....... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
25.1 Advisory and assistance services 23 38 34
25.2 Other services.................. 281 285 290
25.3 Purchases of goods and services
from Government accounts...... 10 10 10
25.4 Operation and maintenance of
facilities.................... 2,894 3,078 3,319
25.5 Research and development
contracts..................... 42 45 49
26.0 Supplies and materials.......... 6 5 5
31.0 Equipment....................... 116 118 120
32.0 Land and structures............. 352 457 515
41.0 Grants, subsidies, and
contributions................. 2 3 3
--------- --------- ----------
99.0 Subtotal, direct obligations.. 3,881 4,204 4,500
99.0 Reimbursable obligations.......... 956 1,119 1,119
--------- --------- ----------
99.9 Total obligations............... 4,837 5,323 5,619
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0240-0-1-053 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 1,966 1,957 1,902
---------------------------------------------------------------------------

Defense Environmental Restoration and Waste Management

For Department of Energy expenses, including the purchase,
construction and acquisition of plant and capital equipment and other
expenses necessary for atomic energy defense environmental restoration
and waste management activities in carrying out the purposes of the
Department of Energy Organization Act (42 U.S.C. 7101 et seq.),
including the acquisition or condemnation of any real property or any
facility or for plant or facility acquisition, construction, or
expansion; and the purchase of passenger motor vehicles (not to exceed
[6 for replacement only) $4,429,438,000] 3 new sedans and 6 for
replacement only, of which 3 are sedans, 2 are buses, and 1 is an
ambulance), $4,259,903,000, to remain available until [expended; and, in
addition, $200,000,000 for privatization projects, to remain available
until] expended. (Energy and Water Development Appropriations Act,
1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Environmental restoration......... 1,731 1,004
00.02 Waste management.................. 1,539 1,555
00.03 Nuclear material and facility
stabilization................... 1,276 1,242
00.04 Policy and management............. 26 22
00.05 Closure projects.................. 15
00.06 Fixed asset acquisition........... 85 75
00.07 Site/project completion........... 1,047
00.08 Post 2006 completion.............. 2,674
00.09 Technology development............ 290 221
00.10 Environmental science program..... 61 54
00.11 Science and technology............ 193
00.12 Program direction................. 383 374 346
00.13 EM privatization.................. 180 190
09.00 Nuclear material and facility
stabilization................... 8
09.02 Asset management pilot projects... 19 21
--------- --------- ----------
10.00 Total obligations............... 5,414 4,746 4,471
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 82 288 190
22.00 New budget authority (gross)...... 5,616 4,648 4,281
22.10 Resources available from
recoveries of prior year
obligations..................... 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,702 4,936 4,471
23.95 New obligations................... -5,414 -4,746 -4,471
24.40 Unobligated balance available, end
of year: Uninvested............. 288 190
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 5,619 4,629 4,260
41.00 Transferred to other accounts... -11
--------- --------- ----------
43.00 Appropriation (total)......... 5,608 4,629 4,260
Permanent:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 8 19 21
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 5,616 4,648 4,281
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 2,030 1,857 1,697
73.10 New obligations................... 5,414 4,746 4,471
73.20 Total outlays (gross)............. -5,579 -4,906 -4,451
73.31 Obligated balance transferred to
other accounts.................. -4
73.45 Adjustments in unexpired accounts. -4
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 1,857 1,697 1,717
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 3,697 3,100 2,982
86.93 Outlays from current balances..... 1,874 1,787 1,448
86.97 Outlays from new permanent
authority....................... 8 19 21
--------- --------- ----------
87.00 Total outlays (gross)........... 5,579 4,906 4,451
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -8 -19 -21
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5,608 4,629 4,260
90.00 Outlays........................... 5,571 4,887 4,430
---------------------------------------------------------------------------

Environmental Management.--The Office of Environmental Management
(EM) manages the thousands of contaminated areas and buildings, huge
waste volumes, and nuclear materials left over from the nuclear weapons
production process. In June 1996, EM began working toward a long-range
goal of completing cleanup at most sites within a decade. FY 1999
represents the first fiscal year in which the budget structure is based
on projects. This budget structure differentiates by completion dates
and end states rather than by activities performed.

The FY 1999 budget request will support the following major program
areas:
Site/Project Completion.--Includes sites and/or projects that
will be completed by 2006 at EM laboratories or other facilities
where DOE will continue to have a presence beyond the year 2006.
Examples of sites with projects included in this account are Idaho
National Engineering and Environmental Laboratory, Idaho; Hanford,
Washington; and Savannah River, South Carolina.
Post 2006 Completion.--Includes projects that will continue
after 2006. Included are various projects at Hanford, Washington;
Savannah River, South Carolina; Idaho National Engineering and
Environmental Laboratory, Idaho;

[[Page 361]]

Nevada Test Site, Nevada; Oak Ridge Reservation, Tennessee; and the
Waste Isolation Pilot Plant (Carlsbad), New Mexico.
Office of Science and Technology.--Conducts technology
development activities which focus on the Department's major
environmental management issues to reduce risk to workers, the
public, and the environment, reduce cleanup costs; and/or provide
solutions that do not exist to current problems shared by multiple
sites. Includes the Environmental Science program which conducts a
targeted long-term basic research program for Environmental
Management problems to significantly reduce long-term cleanup costs
and risks to workers and the public; ``bridging the gap'' between
broad fundamental research such as that performed in DOE's Office of
Energy Research, and applied technology development which has been
historically supported by Environmental Management. In addition, the
Office is responsible for developing risk policy, requirements and
guidance to ensure that risk analysis theory and processes are
integrated into coherent decision making processes.
EM Program Direction.--Provides salaries and benefits, travel
and other contractual support costs for the Federal workforce at
Headquarters and in the field which support the Environmental
Management Program.
Activities performed include: environmental restoration, which
provides for assessments, characterization, remediation, and
decontamination and decommissioning of contaminated DOE facilities
and sites; waste management, which provides for the safe, treatment,
storage, and disposal of wastes generated by defense activities;
and, nuclear material and facility stabilization, which provides for
stabilization, safeguarding, interim storage, and stewardship of
excess nuclear materials, including spent nuclear fuel, awaiting
ultimate disposition.
EM will continue to improve the efficiency of its programs
through a variety of management and contracting strategies. In
addition to privatization efforts, emphasis will continue on the
reduction of support costs and implementation of performance-based
contracts.
Asset Management Pilot Projects.--The Asset Management Program
is designed to provide a financial return to the Federal government
by disposing of unneeded assets. Six pilot projects have been
identified for asset disposition. Revenues received in excess of the
cost of sales, leases, and disposition are returned to Treasury.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 189 161 148
11.3 Other than full-time permanent 5 4 4
11.5 Other personnel compensation.. 4 3 3
--------- --------- ----------
11.9 Total personnel compensation 198 168 155
12.1 Civilian personnel benefits..... 44 38 35
13.0 Benefits for former personnel... 2 2 2
21.0 Travel and transportation of
persons....................... 8 7 6
22.0 Transportation of things........ 1 1 1
23.1 Rental payments to GSA.......... 9 8 7
23.3 Communications, utilities, and
miscellaneous charges......... 19 16 15
25.1 Advisory and assistance services 117 100 92
25.2 Other services.................. 758 750 787
25.3 Purchases of goods and services
from Government accounts...... 37 32 29
25.4 Operation and maintenance of
facilities.................... 3,805 3,257 3,000
25.5 Research and development
contracts..................... 79 67 62
26.0 Supplies and materials.......... 3 3 3
31.0 Equipment....................... 55 47 43
32.0 Land and structures............. 191 163 150
41.0 Grants, subsidies, and
contributions................. 80 68 63
--------- --------- ----------
99.0 Subtotal, direct obligations.. 5,406 4,727 4,450
99.0 Reimbursable obligations.......... 8 19 21
--------- --------- ----------
99.9 Total obligations............... 5,414 4,746 4,471
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0242-0-1-053 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 3,045 3,003 2,869
---------------------------------------------------------------------------

Defense Facilities Closure Projects

For expenses of the Department of Energy to accelerate the closure
of defense environmental management sites, including the purchase,
construction and acquisition of plant and capital equipment and other
necessary expenses, [$890,800,000] $1,006,240,000, to remain available
until expended. (Energy and Water Development Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total obligations................. 891 1,006
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 891 1,006
23.95 New obligations................... -891 -1,006
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 891 1,006
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 267
73.10 New obligations................... 891 1,006
73.20 Total outlays (gross)............. -624 -927
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 267 346
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 624 704
86.93 Outlays from current balances..... 223
--------- --------- ----------
87.00 Total outlays (gross)........... 624 927
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 891 1,006
90.00 Outlays........................... 624 927
---------------------------------------------------------------------------

These funds are managed by the Department of Energy's Environmental
Management Program.

Site Closure.--Provides funding for sites that will meet the goal of
site closure by 2006. The creation of this account supports the
reduction of long-term costs. There will not be a Departmental mission
at sites within this account beyond 2006 except for limited long-term
surveillance and maintenance (i.e., pump and treat). Examples of sites
included under this account are Fernald, Ohio and Rocky Flats, Colorado.

Activities performed include: environmental restoration, which
provides for assessments, characterization, remediation, and
decontamination and decommissioning of contaminated DOE facilities and
sites; waste management, which provides for the safe, treatment,
storage, and disposal of wastes generated by defense activities; and,
nuclear material and facility stabilization, which provides for
stabilization, safeguarding, interim storage, and stewardship of excess
nuclear materials, awaiting ultimate disposition.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0251-0-1-053 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
23.3 Communications, utilities, and
miscellaneous charges........... 8 9
25.1 Advisory and assistance services.. 4 4
25.2 Other services.................... 11 12

[[Page 362]]

25.3 Purchases of goods and services
from Government accounts........ 14 16
25.4 Operation and maintenance of
facilities...................... 828 935
32.0 Land and structures............... 20 23
41.0 Grants, subsidies, and
contributions................... 6 7
--------- --------- ----------
99.9 Total obligations............... 891 1,006
---------------------------------------------------------------------------

Defense Environmental Management Privatization

For Department of Energy expenses for privatization projects
necessary for atomic energy defense environmental restoration and waste
management activities authorized by the Department of Energy
Organization Act (42 U.S.C. 7101, et seq.), $516,857,000, to remain
available until expended.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0249-0-1-053 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations (object class
25.2)........................... 393
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 517
23.95 New obligations................... -393
24.40 Unobligated balance available, end
of year: Uninvested............. 124
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 517
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 New obligations................... 393
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 393
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 517
90.00 Outlays...........................
---------------------------------------------------------------------------

Environmental Management Privatization.--Provides funding
necessary to proceed with privatization of various DOE environmental
management projects that will treat some of DOE's most contaminated
soil and highly radioactive waste, as well as deactivate
contaminated nuclear facilities that cost excessive amounts of money
to maintain. This new approach to cleanup relies on the private
sector to construct and operate facilities or proceed with cleanup
actions on a fixed-price, fee-for-service basis. These competitively
awarded projects are expected to save approximately 30 percent or
more over the life-cycle of the projects, when compared to DOE's
traditional approach of designing, constructing and operating a
government-owned facility. Funds in this account will allow DOE to
enter into these contracts and assures private investors that funds
will be available to pay for services once the facilities are built.

Other Defense Activities

For Department of Energy expenses, including the purchase,
construction and acquisition of plant and capital equipment and other
expenses necessary for atomic energy defense, other defense activities,
in carrying out the purposes of the Department of Energy Organization
Act (42 U.S.C. 7101, et seq.), including the acquisition or condemnation
of any real property or any facility or for plant or facility
acquisition, construction, or expansion, [and the purchase of passenger
motor vehicles (not to exceed 2 for replacement only), $1,666,008,000,]
to become available on October 1 of the fiscal year specified and to
remain available until expended: fiscal year 1999, $1,667,160,000;
fiscal year 2000, $57,871,000; fiscal year 2001, $13,400,000; and fiscal
year 2002, $5,400,000. (Energy and Water Development Appropriations Act,
1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Nonproliferation and national
security........................ 627 670 676
00.02 Fissile materials disposition..... 95 113 169
00.03 Worker and community transition... 66 66 45
00.04 Naval reactors.................... 682 672 666
00.05 International nuclear safety and
security........................ 119 47 35
00.06 Environment, safety and health
(defense)....................... 80 93 74
00.07 Other............................. 41 2
--------- --------- ----------
10.00 Total obligations............... 1,669 1,702 1,667
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 64 36
22.00 New budget authority (gross)...... 1,637 1,666 1,667
22.10 Resources available from
recoveries of prior year
obligations..................... 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,706 1,702 1,667
23.95 New obligations................... -1,669 -1,702 -1,667
24.40 Unobligated balance available, end
of year: Uninvested............. 36
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 1,606 1,666 1,667
41.00 Transferred to other accounts..... -6
42.00 Transferred from other accounts... 37
--------- --------- ----------
43.00 Appropriation (total)........... 1,637 1,666 1,667
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,637 1,666 1,667
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 642 732 693
73.10 New obligations................... 1,669 1,702 1,667
73.20 Total outlays (gross)............. -1,584 -1,741 -1,693
73.32 Obligated balance transferred from
other accounts.................. 9
73.45 Adjustments in unexpired accounts. -5
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 732 693 667
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 1,065 1,083 1,084
86.93 Outlays from current balances..... 519 658 609
--------- --------- ----------
87.00 Total outlays (gross)........... 1,584 1,741 1,693
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,637 1,666 1,667
90.00 Outlays........................... 1,584 1,741 1,693
---------------------------------------------------------------------------

Other defense activities.--This program includes the following
activities:
Nonproliferation and National Security.--The Department's
Nonproliferation and National Security activities consist of the
following areas: Nonproliferation and Verification, Research and
Development, Arms Control and Nonproliferation, Intelligence,
Nuclear Safeguards and Security, Security Investigations, Emergency
Management and Program Direction. These activities provide policy,
direction, technology development and implementation, and leadership
in national and international efforts to reduce the danger to U.S.
national security posed by weapons of mass destruction. Key mission
areas are: (1) preventing the spread of weapons of mass destruction
materials, technology, and expertise; (2) detecting the
proliferation of weapons of mass destruction world wide; (3)
reversing the proliferation of nuclear weapons capabilities; and (4)
responding to weapons of mass destruction emergencies.
Fissile Materials Disposition.--The Fissile Materials
Disposition Program is responsible for defining and implement

[[Page 363]]

ing a path forward for the verifiable storage and disposition of
U.S. weapons-usable fissile material (highly enriched uranium and
plutonium) and for providing technical support for efforts to attain
reciprocal actions for the disposition of surplus Russian plutonium.
The Department is preparing to dispose of surplus weapons highly
enriched uranium by blending it down to low enriched uranium for use
as commercial reactor fuel. The Department is pursuing a hybrid
plutonium disposition strategy that allows for immobilization of
surplus plutonium with ceramic material surrounded by vitrified high
level waste, and burning of surplus plutonium as mixed oxide (MOX)
fuel in existing domestic commercial reactors. Over the next two
years, DOE will complete site-specific environmental reviews and
detailed cost proposals for both disposition approaches; make a
Record of Decision on site(s) for disposition facilities; begin
detailed design of two of the three disposition facilities; and
complete tests, process development and technology demonstrations
required for plutonium disposition. Near term efforts also involve
continued efforts to consolidate the storage of weapons-usable
fissile materials, pending disposition; and development of a pilot
scale plutonium conversion system in Russia. The budget includes $28
million to begin design of a MOX fuel fabrication facility in the
United States. The Administration will not construct new facilities
for disposition of U.S. plutonium unless there is significant
progress on plans for plutonium disposition in Russia.
Worker and Community Transition.--This program provides for the
development and implementation of plans under section 3161 of the
National Defense Authorization Act of 1993, to provide options to
assist workers affected by workforce restructuring including
preference in hiring, outplacement assistance, relocation
assistance, and incentives for early retirement or separation. This
program also provides impact assistance to local communities, as
well as disposition of assets excess to current Department needs.
Naval Reactors.--This program performs the design, development,
and testing necessary to provide the Navy with safe, militarily
effective nuclear propulsion plants in keeping with the Nation's
nuclear-powered fleet defense requirements. During 1999, the program
expects to reach 4,900 cumulative reactor-years of safe operation,
and will continue to support and improve operating reactors and
plant components. In addition, the program will continue to develop
nuclear reactor plant components and systems for the Navy's new
attack submarine, procure equipment needs for development and
testing activities, and maintain or shut down aging facilities as
appropriate.
International Nuclear Safety and Security.--The International
Nuclear Safety Program reflects the Department's commitment to
improve the safety of Soviet-designed nuclear reactors abroad. Since
1992, DOE has led the U.S. Government's effort to reduce the health
and environmental threats posed by the continued operation of aging
nuclear reactors in Russia, Ukraine, and other countries in the
region. The request supports improvements in management and
operational safety, engineering and technology upgrades, and
encourages development of a U.S. equivalent nuclear safety culture.
Environment, safety and health (Defense).--The Office of
Environment, Safety and Health is a corporate resource that provides
Departmental leadership and management to protect the workers,
public, and environment. The programs in the Other Defense
Activities are Oversight, Health Studies, and Radiation Effects
Research Foundation support as well as Program Direction.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 54 68 56
11.3 Other than full-time permanent.. 1 1 1
11.5 Other personnel compensation.... 2 3 2
11.8 Special personal services
payments...................... 2
--------- --------- ----------
11.9 Total personnel compensation.. 59 72 59
12.1 Civilian personnel benefits....... 11 13 12
13.0 Benefits for former personnel..... 1
21.0 Travel and transportation of
persons......................... 4 4 4
23.1 Rental payments to GSA............ 6 7
23.3 Communications, utilities, and
miscellaneous charges........... 1
24.0 Printing and reproduction......... 1 1
25.1 Advisory and assistance services.. 87 85 49
25.2 Other services.................... 222 215 218
25.3 Purchases of goods and services
from Government accounts........ 14 30 10
25.4 Operation and maintenance of
facilities...................... 918 885 879
25.5 Research and development contracts 213 206 206
25.6 Medical care...................... 22 21 21
25.7 Operation and maintenance of
equipment....................... 4 1 1
26.0 Supplies and materials............ 1 1 1
31.0 Equipment......................... 49 75 81
32.0 Land and structures............... 30 29 77
41.0 Grants, subsidies, and
contributions................... 33 58 41
--------- --------- ----------
99.9 Total obligations............... 1,669 1,702 1,667
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0243-0-1-053 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 759 899 720
---------------------------------------------------------------------------

Defense Nuclear Waste Disposal

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0244-0-1-053 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total obligations (object class
25.2)........................... 203 190 190
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 88 85 85
22.00 New budget authority (gross)...... 200 190 190
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 288 275 275
23.95 New obligations................... -203 -190 -190
24.40 Unobligated balance available, end
of year: Uninvested, reserved
pursuant to P.L. 104-46......... 85 85 85
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 200 190 190
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 13 45 45
73.10 New obligations................... 203 190 190
73.20 Total outlays (gross)............. -171 -190 -190
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 45 45 45
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 100 145 145
86.93 Outlays from current balances..... 71 45 45
--------- --------- ----------
87.00 Total outlays (gross)........... 171 190 190
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 200 190 190

[[Page 364]]

90.00 Outlays........................... 171 190 190
---------------------------------------------------------------------------

This appropriation was established by Congress as part of the 1993
Energy and Water Development Appropriation (P.L. 102-377) in lieu of
payment from the Department of Energy into the Nuclear Waste Fund for
activities related to the disposal of defense high-level waste.

The outyear funding for this account does not reflect the impact of
the 1998 viability assessment of Yucca Mountain.

ENERGY PROGRAMS

Federal Funds

General and special funds:

Science

For expenses of the Department of Energy activities including the
purchase, construction and acquisition of plant and capital equipment
and other expenses necessary for science activities in carrying out the
purposes of the Department of Energy Organization Act (42 U.S.C. 7101 et
seq.), including the acquisition or condemnation of any real property or
facility or for plant or facility acquisition, construction, or
expansion, and purchase of [15] 5 passenger motor vehicles for
replacement only, [$2,235,708,000,] to become available on October 1 of
the year specified and to remain available until expended: fiscal year
1999, $2,482,460,000; fiscal year 2000, $318,064,000; fiscal year 2001,
$353,343,000; fiscal year 2002, $333,200,000; fiscal year 2003,
$249,900,000; fiscal year 2004, $132,300,000; and fiscal year 2005,
$43,000,000: Provided, That [$35,000,000] in addition $7,600,000 of the
unobligated balances originally available for Superconducting Super
Collider termination activities shall be made available for other
activities under this heading. (Energy and Water Development
Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 High energy physics............... 658 678 691
00.02 Superconducting super collider.... -20 -8
00.03 Nuclear physics................... 310 320 333
00.04 General science program direction. 12
00.05 Biological and environmental
research........................ 404 392
00.06 Basic energy sciences............. 665 836
00.07 Computational and technology
research........................ 150 161
00.08 Energy research analyses.......... 1 1
00.09 Multiprogram energy labs--facility
support......................... 21 21
00.10 University and science education.. 15
00.11 Program direction................. 38 40
--------- --------- ----------
10.00 Total obligations............... 960 2,269 2,490
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 24 41 8
22.00 New budget authority (gross)...... 977 2,236 2,482
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,001 2,277 2,490
23.95 New obligations................... -960 -2,269 -2,490
24.40 Unobligated balance available, end
of year: Uninvested............. 41 8
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 996 2,236 2,482
41.00 Transferred to other accounts..... -19
--------- --------- ----------
43.00 Appropriation (total)........... 977 2,236 2,482
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 448 385 841
73.10 New obligations................... 960 2,269 2,490
73.20 Total outlays (gross)............. -1,022 -1,813 -2,169
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 385 841 1,162
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 739 1,473 1,430
86.93 Outlays from current balances..... 283 340 738
--------- --------- ----------
87.00 Total outlays (gross)........... 1,022 1,813 2,169
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 977 2,236 2,482
90.00 Outlays........................... 1,022 1,813 2,169
---------------------------------------------------------------------------

High energy physics.--This research program focuses on gaining
insights into the fundamental constituents of matter, the fundamental
forces in nature, and the transformations between matter and energy at
the most elementary level. The program encompasses both experimental and
theoretical particle physics research and related advanced accelerator
and detector technology R&D. The primary mode of experimental research
involves the study of collisions of energetic particles using large
particle accelerators or colliding beam facilities.

Research in 1999 will continue to focus on studies of known
fundamental particle constituents, the search for new particle
constituents, and the pursuit of a unified description of the four
fundamental forces in nature.

In addition to contributing to breakthrough discoveries such as the
existence of the top quark, high energy physics research enhances
national economic competitiveness. State-of-the-art technology developed
for accelerators and detectors contribute to progress in fields such as
fast electronics, high-speed computing, superconducting magnet
technology, and high-power radio frequency devices. High energy physics
research also continues to make major contributions to accelerator
technology and provides the expertise necessary for the expansion of
such technology into fields such as medical diagnostics, and applied
research using synchrotron light sources.

The 1999 high energy physics budget request will support the
continued operation of all three of the Department's major high energy
physics facilities: the Tevatron, the Stanford Linear Collider (SLC),
and the Alternating Gradient Synchrotron (AGS). In addition, $65
million, an increase of $30 million, is provided for the Department's FY
1999 contribution to U.S. participation in the Large Hadron Collider
project at the European Center for Nuclear Research. Advance
appropriations through 2004, totaling $329,000,000, are requested to
complete the US contribution to the project.

The high energy physics R&D request provides funding for advanced
accelerator and detector R&D that is necessary for next-generation high
energy particle accelerators. The FY 1999 request provides $21.7 million
to continue the fabrication of BaBar, the detector for the B-Factory,
and the upgrades of the two detectors at Fermilab, the Collider Detector
Facility and D-Zero. The request also includes $14.3 million for the
neutrinos at the Main Injector Project and $6.7 million for Wilson Hall
safety improvements; Advance appropriations of $64.9 million are
requested to complete these projects.

Superconducting Super Collider.--The Department will continue the
orderly termination of the Superconducting Super Collider (SSC) in 1999,
as directed by Congress in the 1994 Energy and Water Development
Appropriations Act. No additional funding for such activities is
requested in 1999. Due to the efficiency of the SSC termination, $7.6
million in unobligated balances will be transferred to reduce the FY
1999 Science appropriation request.

Nuclear Physics.--The goal of the nuclear physics program is to
understand the interactions and structure of atomic nuclei and to
investigate fundamental particles and forces of nature as manifested in
nuclear matter. In 1999, the pro

[[Page 365]]

gram will continue to focus on the role of quarks in the composition and
interactions of nuclei, the application of nuclear physics methods to
astrophysical problems, the properties of neutrinos, and the mechanisms
by which colliding nuclei exchange mass, energy, and angular momentum.

The nuclear physics program supports and provides experimental
equipment to qualified scientists and research groups conducting
experiments at nuclear physics accelerator facilities. In addition,
nuclear physics accelerators generate many of the radioisotopes used for
medical diagnosis and treatments; support several cooperative programs
in biomedical research and atomic physics; and provide training
opportunities for health physicists concerned with radiation-effects on
humans.

The Thomas Jefferson National Accelerator Facility/Continuous
Electron Beam Accelerator Facility experimental program began in FY 1996
and will continue in FY 1999 with the conduct of research in all three
experimental halls. Experimental operations have also been initiated at
the Radioactive Ion Beam facility in Oak Ridge National Laboratory and
will continue in 1999. Operation of ATLAS (ANL), TAGS (BNL), and the 88-
inch cyclotron (LBNL) will be supported, as will the operation of the
university-based accelerator laboratories.

Relativistic Heavy Ion Collider (RHIC) construction will be
completed in the third quarter of FY 1999 and will begin operations in
the fourth quarter. Funding for the AGS accelerator will be transferred
from the High Energy Physics program to the Nuclear Physics program as
it becomes the injector for the RHIC.

Biological and environmental research.--This program develops the
knowledge base necessary to identify, understand, and anticipate the
long-term health and environmental consequences of energy use and
development and utilizes the Department's unique scientific and
technological capabilities to solve major scientific problems in the
environment, medicine, and biology. Planned 1999 activities include
programs in global climate change; terrestrial, atmospheric and marine
environmental processes; molecular, cellular and systemic studies on the
biological effects of radiation, including radon emissions; structural
biology; and medical applications of nuclear technology and the Human
Genome Program. Funding for the Human Genome Program is provided to
allow for high throughput human DNA sequencing. A carbon management
science program is beginning in FY 1999, focusing on science related to
carbon sequestration and sequencing of genomes of microbes that use
carbon dioxide to produce methane and hydrogen.

Basic Energy Sciences.--The Basic Energy Sciences (BES) program
funds basic research in the physical, biological and engineering
sciences that support the Department's nuclear and non-nuclear
technology programs. The BES program is responsible for operating large
national user research facilities, including synchrotron light and
neutron sources, and a combustion research facility, as well as smaller
user facilities such as materials preparation and electron microscopy
centers.

The BES program also supports a substantial basic research budget
for materials sciences, chemical sciences, energy biosciences,
engineering and the geosciences. The program supports a number of
research areas that are unique within the Federal government; in many
basic research areas, such as materials science, funding provided by the
BES program represents a large percentage, or even the sole source of
Federal funding.

The 1999 BES budget request includes continued support to maintain
utilization of the Department's large state-of-the-art science
facilities. The proposed funding will maintain the quality of service
and availability of facility resources to users, including university
and government scientists, as well as private companies who rely on
unique BES facilities for their basic research needs. Research areas
that will benefit from the facilities funding include structural
biology, materials science, superconductor technology, and medical
research and technology development. The request also includes funding
for an instrumentation enhancement of the Department's neutron source at
the Los Alamos Neutron Scattering Center.

In addition, the BES request includes $157 million in FY 1999 to
initiate construction at Oak Ridge National Laboratory for the national
Spallation Neutron Source (SNS) to meet the Nation's neutron scattering
needs. The SNS will provide significant scientific, technical, and
economic benefits that derive from neutron scattering and materials
irradiation research and the production of medical isotopes. This world
class Neutron source will enable the Nation to carry out major research
activities in areas such as biology, materials science,
superconductivity, pharmaceuticals, electronic materials, and many other
technological areas that are critical for future U.S. economic
competitiveness and national security. This activity also funds a small
portion of the climate change program initiative.

University and Science Education.--This program will continue to
provide leadership and program support necessary to use the resources of
the Department's laboratories to help replenish the overall pool of
well-trained, diverse scientists and engineers of the future and to
achieve significant long term improvements in their scientific and
technological skills.

Energy research analyses.--This activity involves the independent
assessment of existing or proposed technological initiatives, including
examination of the base of research that underlies energy supply and
utilization technologies.

Multiprogram energy laboratories facilities support.--The goal of
the multiprogram energy laboratories facilities support program is to
provide funds for rehabilitating, replacing or demolishing deficient
common-use utilities, roads, and buildings and to correct Environment,
Safety and Health deficiencies at the multiprogram laboratories.

Computational and Technology Research (CTR).--This program includes
research in Mathematical, Information, and Computational Sciences and
Advanced Energy Projects. The program also includes Laboratory
Technology Research activities formerly budgeted as the Technology
Transfer program. The purpose of the CTR program is to provide an
integrated program in long term computational and technology research to
address complex problems. The program also supports the operation of
large supercomputer user facilities. The FY 1999 budget request includes
$22 million for the ``Next Generation Internet'' Initiative.

Research Fund for America.--Funding for the national Spallation
Neutron Source is proposed as part of the Research Fund for America.
This proposal highlights the Administration's priority to provide needed
and sustained investments in important Federal research programs on a
deficit neutral basis. A discussion of the Research Fund for America,
and two other funds for the environment and transportation, can be found
in Section II of the Budget volume.

Funding to Augment Science is proposed as part of the Research Fund
for America. This proposal highlights the Administration's priority to
provide needed and sustained investment in important Federal research
programs on a deficit neutral basis. A discussion of the Research Fund
for America, and two other funds for the environment and transportation,
can be found in Section II of the Budget volume.

Funding for the Climate Change Technology Initiative is proposed as
part of the Research Fund for America. This proposal highlights the
Administration's priority to provide needed and sustained investment in
important Federal research programs on a deficit neutral basis. A
discussion of the Research Fund for America, and two other funds for the
environment and transportation, can be found in Section II of the Budget
volume.

[[Page 366]]

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0222-0-1-251 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 7 20 24
12.1 Civilian personnel benefits....... 1 4 4
21.0 Travel and transportation of
persons......................... 1 1 1
25.1 Advisory and assistance services.. 5 5
25.2 Other services.................... -20 148 205
25.3 Purchases of goods and services
from Government accounts........ 2 4 4
25.4 Operation and maintenance of
facilities...................... 528 1,107 1,150
25.5 Research and development contracts 25 242 275
31.0 Equipment......................... 78 185 208
32.0 Land and structures............... 193 190 244
41.0 Grants, subsidies, and
contributions................... 145 363 370
--------- --------- ----------
99.9 Total obligations............... 960 2,269 2,490
---------------------------------------------------------------------------

Personnel Summary

Energy Supply

For expenses of the Department of Energy activities including the
purchase, construction and acquisition of plant and capital equipment
and other expenses necessary for energy supply, [and] uranium supply and
enrichment activities in carrying out the purposes of the Department of
Energy Organization Act (42 U.S.C. 7101 et seq.), including the
acquisition or condemnation of any real property or any facility or for
plant or facility acquisition, construction, or [expansion,
$906,807,000] expansion; and the purchase of 22 passenger motor vehicles
for replacement only, $1,129,042,000, to remain available until
expended, of which not to exceed $25,000 may be used for official
reception and representation expenses for transparency activities and of
which not to exceed $1,500,000 may be used to pay a portion of the
expenses necessary to meet the United States' annual obligations of
membership in the Nuclear Energy Agency. (Energy and Water Development
Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Solar and renewable energy...... 251 297 389
00.02 Nuclear research & development.. 234 227 326
00.04 Environment, safety and health.. 83 64 76
00.05 Environmental restoration and
waste management.............. 556
00.06 Biological and environmental
research...................... 377
00.07 Magnetic fusion................. 225 232 228
00.08 Supporting research and
technical analysis............ 2
00.09 Multiprogram facilities support. 20
00.10 Technical information management
program....................... 12 10 10
00.13 Computational and technology
research...................... 147
00.15 Oak Ridge landlord.............. 10 12
00.16 Field operations................ 98 95 105
00.17 Energy rsearch program direction 31
00.18 Basic energy sciences........... 633
00.19 Small business innovation....... 80
00.20 Other........................... 11
00.21 AVLIS development &
demonstration program......... 60
--------- --------- ----------
00.91 Total direct obligations...... 2,760 995 1,146
01.01 Reimbursable program.............. 939 1,350 1,350
--------- --------- ----------
10.00 Total obligations............... 3,699 2,345 2,496
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 178 251 138
22.00 New budget authority (gross)...... 3,767 2,256 2,479
22.10 Resources available from
recoveries of prior year
obligations..................... 5
22.21 Unobligated balance transferred to
other accounts.................. -24
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,950 2,483 2,617
23.95 New obligations................... -3,699 -2,345 -2,496
24.40 Unobligated balance available, end
of year: Uninvested............. 251 138 121
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 2,707 907 1,129
40.36 Unobligated balance rescinded... -7
40.79 Line item veto cancellation..... -1
41.00 Transferred to other accounts... -4
42.00 Transferred from other accounts. 42
--------- --------- ----------
43.00 Appropriation (total)......... 2,738 906 1,129
Permanent:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1,029 1,350 1,350
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 3,767 2,256 2,479
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 1,925 1,612 1,455
73.10 New obligations................... 3,699 2,345 2,496
73.20 Total outlays (gross)............. -4,021 -2,237 -2,355
73.31 Obligated balance transferred to
other accounts.................. -4 -265
73.32 Obligated balance transferred from
other accounts.................. 17
73.45 Adjustments in unexpired accounts. -5
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 1,612 1,455 1,596
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 1,344 408 509
86.93 Outlays from current balances..... 1,648 479 497
86.97 Outlays from new permanent
authority....................... 1,029 1,350 1,350
--------- --------- ----------
87.00 Total outlays (gross)........... 4,021 2,237 2,355
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -1,029 -1,225 -1,225
88.40 Non-Federal sources........... -125 -125
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,029 -1,350 -1,350
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2,738 906 1,129
90.00 Outlays........................... 2,992 887 1,005
---------------------------------------------------------------------------

The purpose of energy supply research and development activities is
to develop new energy technologies and improve existing energy
technologies. Included in this mission are basic and applied research
and targeted programs in technology development and market deployment.

This account provides funds for operating expenses, and capital
equipment for the advancement of the various energy technologies under
examination in the energy supply, research and development mission.

Solar and renewable energy technology.--A strong, balanced program
is proposed for FY 1999 that will contribute to strengthening the
Nation's energy security, providing a cleaner environment, enhancing
global sales of U.S. energy products, and increasing industrial
competitiveness and federal technology transfer. The solar and renewable
energy program is a major component of the Administration's activities
to address global climate change. Program activities range from basic
cost-shared research in universities and national laboratories to
applied research, development, and field validations in full partnership
with private sector manufacturers.

The FY 1999 program continues to work in partnership with industry
to develop and promote the use of solar and renewable energy. Specific
goals or activities of solar and renewable energy programs include: (1)
in photovoltaics: an industry-driven effort in research, production,
engineering, and market development; (2) in solar buildings: a focus on
cooperative industry and utility efforts to effectively use advanced
solar technology for water heating; (3) in solar thermal: working with
industry to develop reliable and efficient

[[Page 367]]

power tower and dish/engine systems, while reducing the costs of these
emerging technologies and existing parabolic trough systems; (4) in wind
energy: developing and testing utility-grade wind turbines in
collaboration with utilities and industry; and (5) in biofuels:
continued R&D to achieve further reductions in biomass power and
biofuels production costs, and to develop high-efficiency thermochemical
and biochemical conversion technologies. In addition to these specific
technologies, the 1999 Budget continues to take advantage of the
synergies between emerging biomass power technologies and new biomass
liquid fuel technologies. These developments raise the prospect of
profitable ``energy crop'' farming by rural Americans early in the next
century, accompanied by improved rural economic development, increased
environmental protection in both urban and rural areas, and new global
market opportunities for power technology providers.

The Solar and Renewable Energy programs also include ongoing support
for: (1) international solar energy programs such as the interagency
Committee on Renewable Commerce and Trade (CORECT), and (2) renewable
energy, outreach information, and technical assistance programs.

The Geothermal Energy program supports work with industry and the
utility sector to reduce the life-cycle cost of producing electricity
with geothermal resources. The Hydropower program addresses the primary
environmental mitigation issues associated with licensing and sustaining
hydropower production. The Electric Energy Systems and Storage Programs
include the development of advanced energy storage systems and the
development of wires and power equipment employing advanced high
temperature superconducting technology. A key element of the effort is
the Superconductivity Partnership Initiative, an industry-DOE
collaboration intended to speed the commercialization of
superconductivity products. The program continues to produce world-
record R&D advances. Energy Storage develops advanced technologies to
facilitate the increased utilization of renewable resources. In the
Hydrogen program, R&D efforts are focused on reducing the cost of
hydrogen production, increasing the capability of hydrogen storage, and
validating the benefits of using hydrogen by integrating advanced
technologies.

Nuclear Fission.--Nuclear fission programs represent much of the
federal government's core competency in nuclear technology. This
expertise is critical in assuring that, through its unique research and
development activities, the United States government can respond to
nuclear energy resource, national security, and safety issues. Because
of the nation's reliance on these vital technologies, the Department of
Energy continues to invest in services, products, and technologies that
are beyond the capability of private industry to fund alone.

The FY 1999 budget request supports the recommendations of the
President's Committee of Advisors on Science and Technology (PCAST) to
develop an investigator-initiated, peer-reviewed research and
development program that will address key issues affecting the future of
nuclear energy, including nuclear waste storage and disposal, nuclear
plant economics and operational safety, and potential for weapons
proliferation, that currently impede nuclear energy from becoming a
viable and acceptable energy option in the United States. Projects
proposed by universities, national laboratories, and industry will be
selected competitively, and partnerships and industry cost-sharing will
be encouraged. The Administration's proposal also supports the PCAST
recommendation to initiate a cost-shared program with industry to
address issues that could impact the continued operation of the nation's
107 nuclear power plants.

Nuclear fission program also include ongoing support to: (1) build
and deliver advanced nuclear power systems to NASA and other federal
agencies; (2) maintain an adequate supply of radioisotopes for medical
and research purposes; (3) ensure continued U.S. leadership in nuclear
technology by supporting nuclear education initiatives; (4) oversee the
legacy of the nation's uranium supply and enrichment activities; and (5)
complete a demonstration and comprehensive evaluation of the viability
and cost-effectiveness of electrometallurgical methods of treating the
Department's spent nuclear fuels, taking into account its overall
environmental management strategy and the requirements of its geologic
disposal program. Funding to continue surveillance and maintenance
responsibilities at the Fast Flux Test Facility (FFTF) in Hanford, WA
will be transferred from the Office of Environmental Management. The
FFTF may have potential application to address the nation's need for new
sources of Tritium production.

Environment, safety and health.--The Office of Environment, Safety
and Health is a corporate resource that fosters Departmental excellence
through innovative leadership in the protection of workers, the public,
and the environment. This commitment to excellence will be demonstrated
by striving for continuous improvement in developing meaningful programs
and policies; conducting independent oversight of environment, safety,
health and security performance; and providing technical assistance,
resources and information sharing.

The 1999 budget request for the Office of Environment, Safety and
Health reflects these priorities. It is important to note that the
budget request for the Office of Environment, Safety and Health programs
is contained in two accounts: this and Other Defense Activities. The
funding in this account supports Technical Assistance, National
Environmental Policy Act program, Management and Administration, and
Program Direction.

Fusion Energy Sciences Program.--At the direction of the Congress,
and with guidance from the National Academy of Sciences and the
Department of Energy's Fusion Energy Advisory Committee, the Fusion
Energy Sciences Program was significantly restructured in FY 1997. The
newly restructured program emphasizes the underlying basic research in
plasma and fusion sciences, with the long-term goal of harnessing fusion
as a viable energy source. The program centers on the following goals:
understanding the physics of plasmas; identification and exploration of
innovative and cost effective development paths to fusion energy; and
exploration of the science and technology of energy producing plasmas,
as a partner in an international effort.

The budget request of $228 million provides for support of basic
research in plasma science, plasma containment research, and
investigation of tokamak alternatives, along with continued operation of
DIII-D and Alcator C-Mod. The Tokamak Fusion Test Reactor (TFTR) was
shut down in FY 1997 with remaining staff collaborating on other
machines both domestically and internationally. Fabrication of the NSTX
experiment at PPPL will continue. The FY 1999 budget provides $12
million for the International Thermonuclear Reactor (ITER) joint
baseline design following completion of the U.S. participation in the
ITER Engineering and Design Activity (EDA), which will be completed in
FY 1998. The U.S. plans to continue to participate in the ITER process
to support international collaboration in fusion, including the
evaluation of a variety of options for a next-generation machine. ITER
would address the broad physics and engineering challenges that are
generic to any next step toward the goal of fusion energy, and is also
consistent with the fusion energy science mission.

Technical information management program.--This program contributes
to DOE's missions in advancing energy and nuclear defense technologies
and protecting U.S. economic and military security through the effective
management and control of the Department's scientific and technical
knowledge which is contained in its information resources. Major
objectives are the effective management, control, and use of the

[[Page 368]]

results of DOE's multibillion dollar research program, and the
acquisition and management of results of worldwide investment in energy
R&D.
Policy and management.--Provides executive direction, management
assistance, and administrative support to all programs within energy
supply activities.

Field Operations.--This account funds the Department's multiprogram
Field Operations Offices. The four affected field operations offices are
located at Chicago, Idaho, Oak Ridge, and Oakland. They perform
functions in support of energy activities throughout the country. Among
these functions are field procurement, engineering and construction
management, environmental safety and health monitoring, property
management, labor relations, legal counsel, and maintenance of personnel
and financial systems. These federal employees conduct the management
oversight of the management and operating contractor employees spread
across the four field installations.

Research Fund for America.--Funding for Fusion is proposed as part
of the Research Fund for America. This proposal highlights the
Administration's priority to provide needed and sustained investments in
important Federal research programs on a deficit neutral basis. A
discussion of the Research Fund for America, and two other funds for the
environment and transportation, can be found in Section II of the Budget
volume.

Funding for the Climate Change Technology Initiative is proposed as
part of the Research Fund for America. This proposal highlights the
Administration's priority to provide needed and sustained investments in
important Federal research programs on a deficit neutral basis. A
discussion of the Research Fund for America, and two other funds for the
environment and transportation, can be found in Section II of the Budget
volume.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 116 73 78
11.3 Other than full-time permanent.. 4 3 3
11.5 Other personnel compensation.... 4 3 3
--------- --------- ----------
11.9 Total personnel compensation.. 124 79 84
12.1 Civilian personnel benefits....... 24 15 16
13.0 Benefits for former personnel..... 3 2 2
21.0 Travel and transportation of
persons......................... 6 4 4
23.1 Rental payments to GSA............ 3 2 2
23.2 Rental payments to others......... 33 20 22
23.3 Communications, utilities, and
miscellaneous charges........... 338 212 227
24.0 Printing and reproduction......... 1 1 1
25.1 Advisory and assistance services.. 47 29 32
25.2 Other services.................... 356 223 239
25.3 Purchases of goods and services
from Government accounts........ 94 59 63
25.4 Operation and maintenance of
facilities...................... 1,877 1,177 1,257
25.5 Research and development contracts 142 89 95
25.7 Operation and maintenance of
equipment....................... 6 4 4
26.0 Supplies and materials............ 2 1 1
31.0 Equipment......................... 75 47 50
32.0 Land and structures............... 110 69 74
41.0 Grants, subsidies, and
contributions................... 458 312 323
--------- --------- ----------
99.9 Total obligations............... 3,699 2,345 2,496
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0224-0-1-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 1,931 1,560 1,676
---------------------------------------------------------------------------

Non-Defense Environmental Management

For Department of Energy expenses, including the purchase,
construction and acquisition of plant and capital equipment and other
expenses necessary for non-defense environmental management activities
in carrying out the purposes of the Department of Energy Organization
Act (42 U.S.C. 7101 et seq.), including the acquisition or condemnation
of any real property or any facility or for plant or facility
acquisition, construction or expansion, [$497,059,000] $462,000,000, to
remain available until expended. (Energy and Water Development
Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0250-0-1-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Environmental restoration......... 274
00.02 Waste management.................. 153
00.03 Nuclear material and facility
stabilization................... 71
00.04 Site closure...................... 254
00.05 Site/project completion........... 97
00.06 Post 2006 completion.............. 84
00.07 Science and technology............ 27
--------- --------- ----------
10.00 Total obligations (object class
25.2)......................... 498 462
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 497 462
22.22 Unobligated balance transferred
from other accounts............. 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 498 462
23.95 New obligations................... -498 -462
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 497 462
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 225
73.10 New obligations................... 498 462
73.20 Total outlays (gross)............. -538 -490
73.32 Obligated balance transferred from
other accounts.................. 265
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 225 197
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 348 323
86.93 Outlays from current balances..... 190 167
--------- --------- ----------
87.00 Total outlays (gross)........... 538 490
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 497 462
90.00 Outlays........................... 538 490
---------------------------------------------------------------------------

Environmental Management.--The Office of Environmental Management
(EM) manages the thousands of contaminated areas and buildings, large
waste volumes, and nuclear materials left over from the nuclear weapons
production process. In June 1996, EM began working toward a long-range
goal of completing cleanup at most sites within a decade. FY 1999
represents the first fiscal year in which the budget structure is based
on projects. This budget structure differentiates by completion dates
and end states rather than by activities performed.

The FY 1999 budget request will support the following major program
areas:
Site Closure.--Provides funding for sites that will meet the
goal of site closure by 2006. The creation of this account supports
the reduction of long-term costs. There will not be a Departmental
mission at sites within this account beyond 2006 except for limited
long-term surveillance and maintenance (i.e., pump and treat).
Examples of sites included under this account are Monticello, Utah;
and Weldon Spring, Missouri.
Site/Project Completion.--Provides funding for projects that
will be completed by 2006 at national laboratories or other
facilities where DOE will continue to have a pres

[[Page 369]]

ence beyond the year 2006. Examples of sites with projects included
in this account are Argonne-East, Illinois; and the Idaho National
Engineering and Environmental Laboratory, Idaho.
Post 2006 Completion.--Provides funding for projects that will
continue after 2006. Included are projects at various sites
including the Oak Ridge Reservation, Tennessee.
Office of Science and Technology.--Conducts technology
development activities which focus on the Department's major
environmental management issues to reduce risk to workers, the
public, and the environment, reduce cleanup costs; and/or provide
solutions that do not exist to current problems shared by multiple
sites.
Activities performed include: environmental restoration, which
provides for assessments, characterization, remediation, and
decontamination and decommissioning of contaminated DOE facilities
and sites; waste management, which provides for the safe, treatment,
storage, and disposal of wastes generated by defense activities;
and, nuclear material and facility stabilization, which provides for
stabilization, safeguarding, interim storage, and stewardship of
excess nuclear materials, awaiting ultimate disposition.
EM will continue to improve the efficiency of its programs
through a variety of management and contracting strategies. In
addition to privatization efforts, emphasis will continue on the
reduction of support costs and implementation of performance-based
contracts.

Uranium Supply and Enrichment Activities

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Operating expenses................ 57 1
01.01 Capital investment................ 3
--------- --------- ----------
10.00 Total obligations............... 60 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 19 1
22.00 New budget authority (gross)...... 42
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 61 1
23.95 New obligations................... -60 -1
24.40 Unobligated balance available, end
of year: Uninvested............. 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 43
41.00 Transferred to other accounts..... -1
--------- --------- ----------
43.00 Appropriation (total)........... 42
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 81 50
73.10 New obligations................... 60 1
73.20 Total outlays (gross)............. -91 -51
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 50
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 30
86.93 Outlays from current balances..... 61 51
--------- --------- ----------
87.00 Total outlays (gross)........... 91 51
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 42
90.00 Outlays........................... 90 51
---------------------------------------------------------------------------

Uranium Programs.--Beginning in fiscal year 1998, these programs are
funded in the Energy Supply account.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0226-0-1-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 2
12.1 Civilian personnel benefits....... 1
25.1 Advisory and assistance services.. 1
25.2 Other services.................... 4
25.4 Operation and maintenance of
facilities...................... 49 1
32.0 Land and structures............... 3
--------- --------- ----------
99.9 Total obligations............... 60 1
---------------------------------------------------------------------------

Personnel Summary

Fossil Energy Research and Development

For necessary expenses in carrying out fossil energy research and
development activities, under the authority of the Department of Energy
Organization Act (Public Law 95-91), including the acquisition of
interest, including defeasible and equitable interests in any real
property or any facility or for plant or facility acquisition or
expansion, and for conducting inquiries, technological investigations
and research concerning the extraction, processing, use, and disposal of
mineral substances without objectionable social and environmental costs
(30 U.S.C. 3, 1602, and 1603), performed under the minerals and
materials science programs at the Albany Research Center in Oregon,
[$362,403,000] $383,408,000, to remain available until expended:
Provided, That no part of the sum herein made available shall be used
for the field testing of nuclear explosives in the recovery of oil and
gas. (Department of the Interior and Related Agencies Appropriations
Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Coal research and development..... 106 110 131
00.02 Oil, gas, and shale research and
development..................... 164 177 158
00.03 Program direction and management
support......................... 68 67 67
00.05 Environmental restoration......... 12 13 11
00.06 Cooperative R&D ventures.......... 5 6 6
00.07 Fuels conversion (natural gas and
electricity).................... 2 2 2
00.08 Plant and capital equipment....... 2 3 3
00.09 Mining research and development... 6 5 5
--------- --------- ----------
10.00 Total obligations............... 365 383 383
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 27 21
22.00 New budget authority (gross)...... 359 362 383
22.10 Resources available from
recoveries of prior year
obligations..................... 6
22.21 Unobligated balance transferred to
other accounts.................. -5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 387 383 383
23.95 New obligations................... -365 -383 -383
24.40 Unobligated balance available, end
of year: Uninvested............. 21
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 365 362 383
41.00 Transferred to other accounts..... -6
--------- --------- ----------
43.00 Appropriation (total)........... 359 362 383
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 350 288 300
73.10 New obligations................... 365 383 383
73.20 Total outlays (gross)............. -421 -371 -370
73.32 Obligated balance transferred from
other accounts.................. 2
73.45 Adjustments in unexpired accounts. -6
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 288 300 313
----------------------------------------------------------------------------

[[Page 370]]

Outlays (gross), detail:
86.90 Outlays from new current authority 168 145 153
86.93 Outlays from current balances..... 253 226 217
--------- --------- ----------
87.00 Total outlays (gross)........... 421 371 370
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 359 362 383
90.00 Outlays........................... 421 371 370
---------------------------------------------------------------------------

The Fossil Energy R&D programs support the Energy Policy Act through
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 programs support activities ranging from
basic research in universities and national laboratories to applied R&D
and proof-of-concept projects in private sector firms.

The Fossil Energy R&D programs will continue limited Federal support
of company-specific technology development and demonstration activities.
The program continues to fund high-priority, high risk and cross-cutting
research that will improve the Nation's ability to cleanly and
efficiently use coal, and to enhance the economic recovery of our oil
and gas reserves.

Coal R&D.--Programs will continue to focus on meeting the new goals
and objectives and changing mission of the Department of Energy. An
integrated research and development program consisting of: (1) Advanced
Clean/Efficient Power Systems, (2) Advanced Fuels Research, and (3)
Advanced Research and Technology Development continues to advance clean
coal technology development.

Advanced clean/efficient Power Systems research and development
concentrates on a set of building-block technologies that will yield the
clean coal power generation systems of the future. Typically, many
technologies contribute toward advancing any single system. By focusing
on building-block technologies that will improve a variety of systems,
the Department's program makes optimal use of funds for development and
demonstration. These systems that hold great promise for commercial use
include: Advanced Pulverized Coal-fired Powerplants, High Efficiency
Pressurized Fluidized Bed Combustion, High Efficiency Integrated
Gasification Combined Cycles, Indirectly Fired Cycles, and Advanced
Research and Environmental Technology.

The Advanced Clean Fuels Research program will conduct activities to
develop clean methods to produce coal-derived liquid fuels. This
research consists of Coal Preparation, Direct Liquefaction, Indirect
Liquefaction, and Advanced Research & Environmental Technology.

Oil and gas.--The oil program encompasses new and improved oil
recovery and related research and development, industry cost-shared
demonstration of improved and advanced oil recovery methods, and
environmental research activities directed to facilitate environmentally
acceptable exploration and production of domestic oil resources. The
Department plans to discontinue research directed to improve technology
needed to economically refine domestic crude oils.

The natural gas program emphasizes enhanced gas production, storage
technology, and high efficiency, low NOx turbines.

As in all other programs, industry and Gas Research Institute cost-
sharing is a key feature. The national laboratory partnership focuses on
the transfer of Defense-developed technology to the oil and gas
industry. The fuel cells program will continue to support development of
highly efficient, environmental friendly technologies for generating
electrical and thermal energy.

The request also includes funding for the advanced metallurgical
research program at the Albany Research Center in Oregon, which was
formerly funded by the Bureau of Mines.

Program direction and management support.--This program provides the
funding for all Headquarters and indirect field personnel and overhead
expenses in Fossil Energy. In addition, it provides support for day-to-
day project management functions.

Environmental restoration.--The Department of Energy is assisting in
payments for the environmental clean-up of former Fossil Energy projects
as required by the Environmental Protection Agency. Comprehensive
Environmental Response, Compensation and Liability Act (CERCLA) sites
include the Western Superfund Site at Ft. Lewis, Washington, and the
Rock Springs and Hoe Creek Sites in Wyoming. Resource Conservation
Recovery Act (RCRA) efforts are underway at the Federal Energy
Technology Center Morgantown Office (formerly the Morgantown Energy
Technology Center) to eliminate cross-connections between sewer and
storm water lines, and at the Federal Energy Technology Center
Pittsburgh Office (formerly the Pittsburgh Energy Technology Center) to
clean up contaminated soil and monitor groundwater. In addition, as a
result of internal DOE evaluations other efforts are underway at both
sites of the Federal Energy Technology Center to correct a number of
other environmental problems.

Fuels conversion.--This program will continue regulatory reviews and
oversight of the transmission of natural gas and electricity across the
U.S. borders and to process certifications of alternate fuel capability.

Research Fund for America.--Funding for the Climate Change
Technology Initiative is proposed as part of the Research Fund for
America. This proposal highlights the Administration's priority to
provide needed and sustained investments in important Federal research
programs on a deficit neutral basis. A discussion of the Research Fund
for America, and two other funds for the environment and transportation,
can be found in Section II of the Budget volume.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 38 38 40
11.3 Other than full-time permanent.. 1 1 1
11.5 Other personnel compensation.... 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 40 40 42
12.1 Civilian personnel benefits....... 8 9 9
13.0 Benefits for former personnel..... 1
21.0 Travel and transportation of
persons......................... 2 2 2
23.3 Communications, utilities, and
miscellaneous charges........... 3 3 3
25.1 Advisory and assistance services.. 28 27 26
25.2 Other services.................... 27 30 29
25.3 Purchases of goods and services
from Government accounts........ 10 11 10
25.4 Operation and maintenance of
facilities...................... 49 51 53
25.5 Research and development contracts 178 189 187
26.0 Supplies and materials............ 6 6 6
31.0 Equipment......................... 2 2 2
32.0 Land and structures............... 2 2 2
41.0 Grants, subsidies, and
contributions................... 10 11 11
--------- --------- ----------
99.9 Total obligations............... 365 383 383
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0213-0-1-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 671 683 683
---------------------------------------------------------------------------

[[Page 371]]

Naval Petroleum and Oil Shale Reserves

For necessary expenses in carrying out naval petroleum and oil shale
reserve activities, [$107,000,000, and such sums as are necessary to
operate Naval Petroleum Reserve Numbered 1 between May 16, 1998 and
September 30, 1998] $22,500,000, to remain available until expended:
Provided, That [notwithstanding any other provision of law, revenues
received from use and operation of Naval Petroleum Reserve Numbered 1 in
excess of $163,000,000 shall be used to offset the costs of operating
Naval Petroleum Reserve Numbered 1 between May 16, 1998 and September
30, 1998: Provided further, That revenues retained pursuant to the first
proviso under this heading in Public Law 102-381 (106 Stat. 1404) shall
be immediately transferred to the general fund of the Treasury: Provided
further, That] the requirements of 10 U.S.C. 7430(b)(2)(B) shall not
apply to fiscal year [1998] 1999. (Department of the Interior and
Related Agencies Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 142 114 28
09.01 Reimbursable program.............. 4 3
--------- --------- ----------
10.00 Total obligations............... 146 117 28
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 438 440 8
22.00 New budget authority (gross)...... 148 110 23
22.40 Capital transfer to general fund.. -425
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 586 125 31
23.95 New obligations................... -146 -117 -28
24.40 Unobligated balance available, end
of year: Uninvested............. 440 8 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 144 107 23
Permanent:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 4 3
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 148 110 23
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 109 72 66
73.10 New obligations................... 146 117 28
73.20 Total outlays (gross)............. -183 -123 -58
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 72 66 36
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 59 66 14
86.93 Outlays from current balances..... 122 55 44
86.97 Outlays from new permanent
authority....................... 3
--------- --------- ----------
87.00 Total outlays (gross)........... 183 123 58
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -4 -3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 144 107 23
90.00 Outlays........................... 179 120 58
---------------------------------------------------------------------------

In the past, this program has included activities necessary to
operate, explore, conserve, develop, and produce oil, gas, and
associated hydrocarbons from the naval petroleum reserves at the maximum
efficient rate, and to conserve and protect the oil shale reserves. This
has included routine operation and maintenance, development and
exploration drilling, environmental and conservation work, and
construction and installation of on-reserve facilities and related
systems required for the collection, storage, and distribution of
produced petroleum and related products. The naval petroleum reserves
has been a positive source of revenue for the Treasury since the
resulting oil and gas production was sold commercially.

Public Law 104-106 required the sale of Elk Hills by February 10,
1998. Elk Hills is the major oil and natural gas field located near
Bakersfield, California that accounts for the bulk of this program.
Accordingly, DOE structured a competitive sale, and, on October 6, 1997,
announced it agreed to sell all of the government's interest in Elk
Hills to Occidental Petroleum for $3.65 billion, retroactive to October
1, 1997. Closing the transaction is scheduled to occur on February 2,
1998.

Public Law 104-106 also required DOE to retain an independent
petroleum consultant to conduct a study to determine the best options
for maximizing the value of the remaining Reserves. The study recommends
the Department retain NPR-3 (Teapot Dome). While efforts will continue
to be directed toward maintaining a positive net cash flow through
normal operations, the work at Teapot Dome will increasingly focus on
environmental remediation, abandoning marginal and unproductive wells,
and preparation for abandonment when the oil field reaches its economic
limit. Although no future development activities are planned, NPR-3
should continue to operate economically through approximately FY 2003.
At that time, subject to authorizing legislation, NPR-3 is expected to
be turned over to the private sector or abandoned, coinciding with
completion of the well abandonment program which commences in FY 1998.

Under the Rocky Mountain Oilfield Testing Center (RMOTC) program,
the naval petroleum reserves offers Naval Petroleum Reserve No. 3
(Teapot Dome) to the oil industry for use as a working laboratory on a
cost-sharing basis. Teapot Dome is a unique opportunity for the industry
to test and evaluate innovative production techniques in an impartial
setting. Eventually, the naval petroleum reserve program hopes to
transfer the RMOTC program to a consortium of private and educational
institutions for continued operation.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 5 5 5
12.1 Civilian personnel benefits..... 1 3 1
25.1 Advisory and assistance services 12 3 3
25.2 Other services.................. 117 99 17
25.4 Operation and maintenance of
facilities.................... 7 3 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 142 113 27
99.0 Reimbursable obligations.......... 4 3
99.5 Below reporting threshold......... 1 1
--------- --------- ----------
99.9 Total obligations............... 146 117 28
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0219-0-1-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 70 64 60
---------------------------------------------------------------------------

Energy Conservation

For necessary expenses in carrying out energy conservation
activities, [$611,723,000], $808,500,000 to remain available until
expended, including, notwithstanding any other provision of law, the
excess amount for fiscal year [1998] 1999 determined under the
provisions of section 3003(d) of Public Law 99-509 (15 U.S.C. 4502):
Provided, That [$155,095,000] $191,100,000 shall be for use in energy
conservation programs as defined in section 3008(3) of Public Law 99-509
(15 U.S.C. 4507) and shall not be available until excess amounts are
determined under the provisions of section 3003(d) of Public Law 99-509
(15 U.S.C. 4502): Provided further, That notwithstanding section
3003(d)(2) of Public Law 99-509 such sums shall be allocated to the
eligible programs as follows: [$124,845,000]

[[Page 372]]

$154,100,000 for weatherization assistance grants and [$30,250,000]
$37,000,000 for State energy conservation grants. (Department of the
Interior and Related Agencies Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Building technology, State and
community programs--non-grant... 87 81 127
00.02 Building technology, State and
community programs -grants...... 148 156 191
00.03 Federal energy management program. 20 20 34
00.04 Industrial sector................. 114 139 167
00.05 Transportation sector............. 172 195 246
00.06 Policy and management............. 33 29 44
--------- --------- ----------
10.00 Total obligations............... 574 620 809
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 18 8
22.00 New budget authority (gross)...... 563 612 809
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 582 620 809
23.95 New obligations................... -574 -620 -809
24.40 Unobligated balance available, end
of year: Uninvested............. 8
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 539 591 774
41.00 Transferred to other accounts... -6
--------- --------- ----------
43.00 Appropriation (total)......... 533 591 774
Permanent:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 30 21 35
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 563 612 809
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 594 565 613
73.10 New obligations................... 574 620 809
73.20 Total outlays (gross)............. -602 -572 -673
73.45 Adjustments in unexpired accounts. -1
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 565 613 749
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 169 177 232
86.93 Outlays from current balances..... 403 374 325
86.97 Outlays from new permanent
authority....................... 30 21 35
86.98 Outlays from permanent balances... 81
--------- --------- ----------
87.00 Total outlays (gross)........... 602 572 673
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -30 -21 -35
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 533 591 774
90.00 Outlays........................... 572 551 638
---------------------------------------------------------------------------

The Administration's energy efficiency programs produce substantial
benefits for the Nation--both now and in the future--in terms of
economic growth, increased national security and a cleaner environment
through the research and development of energy efficiency and pollution
prevention technologies. These programs carry out the Department's
responsibility under the bipartisan Energy Policy Act of 1992 and other
major pieces of authorizing legislation.

The dollar benefits of our carefully constructed programs--to
industries, homeowners, and commercial firms--far exceed program costs.
Furthermore, the technologies developed in these programs create jobs
and global market opportunities for U.S. firms. These programs are a
major component of the Administration's climate change response, and
when the benefits to energy security and the environment are included,
it is clear that these programs represent important investments in a
clean, productive future.

In total, the Department's energy efficiency programs are projected
to save consumers and businesses over $20 billion per year by the year
2010. Our transportation technologies research is designed to reduce oil
imports thereby substantially reducing the cost of imported oil.

The activities and programs contained in the 1999 Budget Request
represent a balanced portfolio of research and development, applied
research and demonstration, and market introduction. Virtually all of
the research and development programs are conducted jointly with
industrial partners who share significantly in research costs, often
paying 33 to 50 percent or more. Similarly, demonstration and deployment
programs are specifically designed to leverage the existing programs and
the efforts of utilities and existing state and local government
programs in energy efficiency and pollution prevention.

Building Technology, State and Community Programs.--Research and
development to improve the energy efficiency of appliances, building
equipment, and the building envelope is complemented by new programs
designed to move advanced technologies into the marketplace and produce
near-term energy savings with associated economic and environmental
benefits. Voluntary partnerships for lowering the barriers to cost-
effective, new technologies based on the Energy Policy Act of 1992
represent collaborations with many stakeholders, including
manufacturers, utilities, State and local organizations, and the general
public. The program to develop appliance and lighting test procedures
and standards is utilizing new collaborative processes and analytical
approaches in order to ensure participation by all interested
stakeholders. The program to encourage building efficiency codes and
standards will focus on expanded voluntary programs. The State and Local
Partnership Program, which includes the Weatherization Assistance
Program and the State Energy Program is designed to promote the adoption
of energy efficient and renewable technologies among States,
municipalities, institutions, and by private citizens.

Federal Energy Management Program.--The Federal Energy Management
Program (FEMP) will continue to reduce the cost of government by
advancing energy efficiency and water conservation, and to use renewable
energy as a means to reduce energy costs. FEMP's major emphasis will be
on using private sector investments to retrofit federal facilities using
energy savings performance contracting, thus leveraging federal dollars
to the maximum.

Industrial Sector.--The program focuses on funding cost-shared
research in critical technology areas identified by industry. Through
its ``Industries of the Future'' initiative, the Office of Industrial
Technologies (OIT) encourages the most energy-intensive industries to
develop a strategic vision and a ``technology roadmap'' to help achieve
that vision. By identifying and prioritizing their technology needs, the
industries help OIT target its R&D resources toward where they can do
the most good. The energy-intensive and environmentally sensitive
industries targeted by OIT include chemicals, petroleum refining, forest
products, steel, aluminum, metal casting, and glass. The focus is on
high risk but promising technologies that decrease these industries' use
of raw materials and depletable energy resources and reduce generation
of wastes and pollutants. OIT's Industries of the Future R&D portfolio
is balanced with crosscutting technology development programs in such
areas as cogeneration, advanced materials and combustion. In addition,
technology access programs such

[[Page 373]]

as Motor Challenge, the National Industrial Competitiveness through
Energy, Environment and Economics (NICE3) program, Climate Wise,
Invention and Innovation and the Industrial Assessment Centers help
further round out OIT's overall portfolio.

Transportation Sector.--The program continues development and
commercialization of technologies which can radically alter current
projections of U.S. and world demand for energy, particularly oil. The
program represents a major portion of the Partnership for the Next
Generation of Vehicles with its significant improvements in fuel economy
and environmental emissions including criteria pollutants and carbon
dioxide. Program priorities reflect work on technologies which are most
critical to achieve a tripling of light duty vehicles fuel economy,
including hybrid vehicles, fuel cells, compression ignition direct
injection diesel engines, and advanced materials technologies that
improve engine efficiency and reduce weight. In addition, the program
will continue to develop alternative fuels and vehicles, and advanced
batteries that enable the use of electricity as an alternative fuel, and
technologies for enabling fuel flexibility and fuel economy in heavy
trucks. These activities include demonstrating advanced alternative fuel
vehicles that provide improved range and reduced emissions, with
performance equivalent to conventional vehicles; accelerating the use of
alternative fuels and vehicles through implementation of Energy Policy
Act programs; and continuing support for the U.S. Advanced Battery
Consortium and demonstrating continued progress in improving range and
performance for electric and hybrid vehicles.

Policy and Management.--This activity provides program management
for all of the Energy Conservation programs, and supports management in
the development of policy and program evaluation for energy conservation
programs to ensure effective program delivery.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 26 27 28
11.3 Other than full-time permanent.. 1 2 2
11.5 Other personnel compensation.... 1 2 2
--------- --------- ----------
11.9 Total personnel compensation.. 28 31 32
12.1 Civilian personnel benefits....... 6 7 7
13.0 Benefits for former personnel..... 1 2 2
21.0 Travel and transportation of
persons......................... 3 4 5
23.1 Rental payments to GSA............ 2 2 3
23.3 Communications, utilities, and
miscellaneous charges........... 1 2 3
25.1 Advisory and assistance services.. 24 27 37
25.2 Other services.................... 15 17 24
25.3 Purchases of goods and services
from Government accounts........ 5 6 9
25.4 Operation and maintenance of
facilities...................... 201 210 280
25.5 Research and development contracts 71 81 112
26.0 Supplies and materials............ 1 2 3
31.0 Equipment......................... 1 2 2
41.0 Grants, subsidies, and
contributions................... 215 227 290
--------- --------- ----------
99.9 Total obligations............... 574 620 809
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0215-0-1-272 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 432 434 420
---------------------------------------------------------------------------

Strategic Petroleum Reserve

[(including transfer of funds)]

For necessary expenses for Strategic Petroleum Reserve facility
development and operations and program management activities pursuant to
the Energy Policy and Conservation Act of 1975, as amended (42 U.S.C.
6201 et seq.), [$207,500,000] $160,120,000, to remain available until
expended[, of which $207,500,000 shall be repaid from the ``SPR
Operating Fund'' from amounts made available from the sale of oil from
the Reserve: Provided, That notwithstanding section 161 of the Energy
Policy and Conservation Act of 1975, the Secretary shall draw down and
sell in fiscal year 1998, $207,500,000 worth of oil from the Strategic
Petroleum Reserve: Provided further, That the proceeds from the sale
shall be deposited into the ``SPR Operating Fund'', and shall, upon
receipt, be transferred to the Strategic Petroleum Reserve account for
operations of the Strategic Petroleum Reserve]. (Department of the
Interior and Related Agencies Appropriations Act, 1998.)

Unavailable Collections (in millions of dollars)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Storage facilities operations..... 245 193 144
00.02 Management........................ 16 16
--------- --------- ----------
10.00 Total obligations............... 245 209 160
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 77 41 40
22.00 New budget authority (gross)...... 209 208 160
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 286 249 200
23.95 New obligations................... -245 -209 -160
24.40 Unobligated balance available, end
of year: Uninvested............. 41 40 40
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 160
40.25 Appropriation (special fund,
indefinite)..................... 220 208
40.35 Appropriation rescinded........... -11
--------- --------- ----------
43.00 Appropriation (total)........... 209 208 160
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 149 151 144
73.10 New obligations................... 245 209 160
73.20 Total outlays (gross)............. -242 -216 -182
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 151 144 122
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 133 114 88
86.93 Outlays from current balances..... 109 102 94
--------- --------- ----------
87.00 Total outlays (gross)........... 242 216 182
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 209 208 160
90.00 Outlays........................... 242 216 182
---------------------------------------------------------------------------

The object of this program is to reduce the vulnerability of the
United States to energy supply disruptions by maintaining a crude oil
stockpile capable of rapid deployment at the direction of the President.
This program enables the President to meet the Nation's membership
commitments within the International Energy Agency's coordinated energy

[[Page 374]]

emergency response plans and programs to deter the use of energy supply
disruptions and to take effective, co-ordinated action should such an
energy supply disruption occur.

The account provides for petroleum reserve storage facility
construction, ongoing operations and maintenance activities, planning
studies, and program administration.

The key measure of program performance is expressed as capability to
comply with Level 1 Performance Criteria. These criteria are specific
engineered performance and reliability standards applied to critical
inventory storage, drawdown, and distribution systems required for
drawing down and distributing crude oil inventory.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0218-0-1-274 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 9 9 9
12.1 Civilian personnel benefits....... 2 2 2
21.0 Travel and transportation of
persons......................... 1 1 1
23.2 Rental payments to others......... 2 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 2 5 5
25.1 Advisory and assistance services.. 2 4 4
25.2 Other services.................... 25 2 2
25.3 Purchases of goods and services
from Government accounts........ 1 1
25.4 Operation and maintenance of
facilities...................... 202 184 135
--------- --------- ----------
99.9 Total obligations............... 245 209 160
---------------------------------------------------------------------------

Personnel Summary

SPR Petroleum Account

[Notwithstanding 42 U.S.C. 6240(d), the United States share of crude
oil in Naval Petroleum Reserve Numbered 1 (Elk Hills) may be sold or
otherwise disposed of to other than the Strategic Petroleum Reserve:
Provided, That outlays in fiscal year 1998 resulting from the use of
funds in this account shall not exceed $5,000,000]. (Department of the
Interior and Related Agencies Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total obligations................. 5 5
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 33 33 28
23.95 New obligations................... -5 -5
24.40 Unobligated balance available, end
of year: Uninvested............. 33 28 23
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 3 3 3
73.10 New obligations................... 5 5
73.20 Total outlays (gross)............. -5 -5
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 3 3 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 5 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 5 5
---------------------------------------------------------------------------

This account provides for the acquisition, transportation, and
injection of petroleum into the Strategic Petroleum Reserve and for its
drawdown and distribution. The budget proposes no additional
appropriations in 1999 for SPR oil purchases. The small remaining
balance will support drawdown/distribution readiness and the incremental
costs of drawdown in the event of an energy emergency.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0233-0-1-274 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
25.2 Other services.................... 1 1
25.3 Purchases of goods and services
from Government accounts........ 4 4
--------- --------- ----------
99.9 Total obligations............... 5 5
---------------------------------------------------------------------------

Energy Information Administration

For necessary expenses in carrying out the activities of the Energy
Information Administration, [$66,800,000] $70,500,000, to remain
available until expended. (Department of the Interior and Related
Agencies Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total obligations................. 66 70 71
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 3 3
22.00 New budget authority (gross)...... 66 67 71
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 69 70 71
23.95 New obligations................... -66 -70 -71
24.40 Unobligated balance available, end
of year: Uninvested............. 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 66 67 71
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 26 16 20
73.10 New obligations................... 66 70 71
73.20 Total outlays (gross)............. -75 -67 -70
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 16 20 21
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 50 47 50
86.93 Outlays from current balances..... 25 19 20
--------- --------- ----------
87.00 Total outlays (gross)........... 75 67 70
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 66 67 71
90.00 Outlays........................... 75 67 70
---------------------------------------------------------------------------

This program supports energy information activities which are
designed to provide timely, accurate and relevant energy information for
use by the Administration, the Congress, and the general public. The
activities funded in this program include the design, development and
maintenance of information systems on petroleum, natural gas, coal,
nuclear, electricity, alternate fuel sources, and energy consumption.
This includes collecting data and ensuring its accuracy; preparing
forecasts of alternative energy futures; and preparing reports on energy
sources, end-uses, prices, supply and demand, and associated
environmental, economic, international, and financial matters. In
addition, the National Energy Information Center disseminates
statistical and analytical publications, reports, and data files in
hard-copy and electronic formats, and responds to public inquiries.
Finally, this activity pro

[[Page 375]]

vides survey and statistical design standards, documentation standards,
and energy data public-use forms clearance and burden control services.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 26 25 25
11.3 Other than full-time permanent.. 1 1 1
11.5 Other personnel compensation.... 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 28 27 27
12.1 Civilian personnel benefits....... 5 5 4
23.1 Rental payments to GSA............ 6 5 5
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
24.0 Printing and reproduction......... 1 1 1
25.1 Advisory and assistance services.. 1 1 1
25.2 Other services.................... 17 23 25
26.0 Supplies and materials............ 6 5 5
--------- --------- ----------
99.0 Subtotal, direct obligations.. 65 68 69
99.5 Below reporting threshold......... 1 2 2
--------- --------- ----------
99.9 Total obligations............... 66 70 71
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0216-0-1-276 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 409 374 353
---------------------------------------------------------------------------

Emergency Preparedness

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0234-0-1-274 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 1
73.20 Total outlays (gross)............. -1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 1
---------------------------------------------------------------------------

Economic Regulation

For necessary expenses in carrying out the activities of the Office
of Hearings and Appeals, [$2,725,000] $1,801,000, to remain available
until expended. (Department of the Interior and Related Agencies
Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Economic regulation............... 1
00.02 Hearings and appeals.............. 3 3 2
--------- --------- ----------
10.00 Total obligations............... 4 3 2
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 1
22.00 New budget authority (gross)...... 3 3 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 4 3 2
23.95 New obligations................... -4 -3 -2
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 3 3 2
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 2 1 1
73.10 New obligations................... 4 3 2
73.20 Total outlays (gross)............. -5 -3 -2
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 1 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 2 3 2
86.93 Outlays from current balances..... 3
--------- --------- ----------
87.00 Total outlays (gross)........... 5 3 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3 3 2
90.00 Outlays........................... 5 3 2
---------------------------------------------------------------------------

Compliance.--This program, administered by the Office of General
Counsel, is responsible for resolving all remaining enforcement actions
to ensure that oil companies complied with petroleum regulations in
effect prior to decontrol of oil in January 1981.

Hearings and appeals.--The Office of Hearings and Appeals issues all
final orders of an adjudicatory nature other than those over which the
Federal Energy Regulatory Commission or the Board of Contract Appeals
have jurisdiction. It decides appeals of petroleum enforcement actions
and administers refund proceedings involving funds obtained as a result
of petroleum enforcement actions. This office is also responsible for
(a) conducting hearings and issuing initial agency decisions on
``whistleblower'' complaints made under the DOE Contractor Employee
Protection Program, (b) appeals of Freedom of Information and Privacy
Act Determinations, (c) ``Payment-Equal-to-Taxes'' determinations made
under the Nuclear Waste Policy Act of 1982, as amended, (d) conducting
personnel security administrative review hearings, and (e) requests for
exception relief. The FY 1999 funding request is limited to expenses
related to Petroleum overcharge cases.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0217-0-1-276 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 2 2 1
25.3 Purchases of goods and services
from Government accounts........ 2 1 1
--------- --------- ----------
99.9 Total obligations............... 4 3 2
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0217-0-1-276 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 69 24 21
---------------------------------------------------------------------------

Federal Energy Regulatory Commission

salaries and expenses

For necessary expenses of the Federal Energy Regulatory Commission
to carry out the provisions of the Department of Energy Organization Act
(42 U.S.C. 7101 et seq.), including services as authorized by 5 U.S.C.
3109, the hire of passenger motor vehicles, and official reception and
representation expenses (not to exceed $3,000), [$162,141,000]
$168,898,000, to remain available until expended: Provided, That
notwithstanding any other provision of law, [not to exceed $162,141,000
of] revenues from fees and annual charges, and other services and
collections in fiscal year [1998] 1999 shall be

[[Page 376]]

retained and [used] become available until expended on October 1, 1999,
for necessary expenses in this account[, and shall remain available
until expended: Provided further, That the sum herein appropriated from
the General Fund shall be reduced as revenues are received during fiscal
year 1998 so as to result in a final fiscal year 1998 appropriation from
the General Fund estimated at not more than $0]. (Energy and Water
Development Appropriations Act, 1998.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0212-0-1-276 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............
--------- --------- ----------
03.00 Offsetting collections............ 197
07.99 Total balance, end of year........ 197
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Hydropower regulation............. 45 50 49
00.03 Electric power regulation......... 46 52 54
00.04 Natural gas and oil regulation.... 63 64 66
--------- --------- ----------
10.00 Total obligations............... 154 166 169
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 10 3
22.00 New budget authority (gross)...... 146 162 169
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 156 166 169
23.95 New obligations................... -154 -166 -169
24.40 Unobligated balance available, end
of year: Uninvested............. 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 169
Permanent:

Spending authority from
offsetting collections:
68.00 Offsetting collections (cash). 146 162 197
68.45 Portion not available for
obligation (limitation on
obligations)................ -197
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)................... 146 162
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 146 162 169
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 24 19 24
73.10 New obligations................... 154 166 169
73.20 Total outlays (gross)............. -158 -160 -168
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 19 24 25
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 144
86.97 Outlays from new permanent
authority....................... 124 138
86.98 Outlays from permanent balances... 34 22 24
--------- --------- ----------
87.00 Total outlays (gross)........... 158 160 168
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -146 -162 -197
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -28
90.00 Outlays........................... 12 -2 -29
---------------------------------------------------------------------------

The Federal Energy Regulatory Commission (FERC) is charged with
regulating certain interstate aspects of the natural gas, oil pipeline,
hydropower, and electric industries. Such regulation includes issuing
licenses and certificates for construction of facilities, approving
rates, inspecting dams, implementing compliance and enforcement
activities, and providing other services to regulated businesses. In
1999, these businesses will pay fees and charges sufficient to recover
the Government's full costs of operations.

The Commission's FY 1999 budget is structured to implement the
Administration's policy to fund discretionary programs with user fees
that are offsetting collections. While revenues collected in FY 1999
will continue to offset the Commission's appropriation, the collections
will not be available for obligation in FY 1999. For FY 2000 and
subsequent years, budget levels set by appropriations acts will be made
available from the previous year's collections retained in this account.
In the event of insufficient revenue, a General Fund appropriation will
be requested. Any excess funds remaining after appropriation of
offsetting collections will be returned to the Treasury.

Natural gas and oil.--The Commission is responsible for the
regulation of about 150 natural gas pipeline companies and 130 common
carrier oil pipelines including the Trans-Alaska Pipeline System. The
Commission issues certificates authorizing natural gas pipelines to
construct and operate new facilities and to provide new services;
determines just and reasonable rates for the interstate transportation
of natural gas and oil on the pipelines subject to the Commission's
jurisdiction; and authorizes tariff provisions, as appropriate, to allow
the gas and oil pipelines to adjust their services to meet their
customers' needs and the pipelines' needs to meet competition in their
markets. The Commission has and will continue to develop creative and
flexible pricing policies and new and innovative services to address the
changing competitive marketplace in both the gas and oil industries.
While working to assure the industries are able to meet their service
requirements by staying economically healthy, the Commission will
continue to assure that environmental concerns from construction
projects are properly addressed and that the public interest is
protected when new services or pricing mechanisms are authorized.

Hydropower.--The Commission issues preliminary permits, exemptions,
and licenses, including relicenses, for non-federal hydroelectric
projects, enforces their terms and conditions, and performs dam safety
inspections. The Commission regulates more than 1,600 hydroelectric
projects which supply about 5 percent of the electric energy generated
in the United States. The Commission also performs investigations to
determine the amount of headwater benefits that are derived from
Federally-owned and FERC-licensed headwater improvements and returned
more than $7 million in revenues to the U.S. Treasury in 1997.

Electric power.--The Commission is responsible for setting rates for
the interstate transmission and wholesale sales of electric energy and
for authorizing certain public utility corporate transactions. The
Commission approves rates for all Federal power marketing
administrations except TVA. Since enactment of the Energy Policy Act of
1992, the Commission has introduced a number of initiatives to foster
competition in the generation sector of the electric utility industry
while continuing to ensure system reliability. In 1996, the Commission
issued Order Nos. 888 and 889, which require all jurisdictional public
utilities to provide open access transmission service to all customers
under standard terms and conditions. In the wake of Order Nos. 888 and
889, new market institutions are developing. For example, many utilities
are turning over control of their transmission systems to Independent
System Operators, which requires Commission approval. The Commission
also certifies three special classes of power generators: cogeneration
facilities, small power production facilities, and exempt wholesale
generators.

[[Page 377]]

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 86 92 96
11.3 Other than full-time permanent.. 2 2 2
11.5 Other personnel compensation.... 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 89 95 99
12.1 Civilian personnel benefits....... 16 18 18
13.0 Benefits for former personnel..... 1 1
21.0 Travel and transportation of
persons......................... 2 2 2
23.1 Rental payments to GSA............ 17 18 18
23.3 Communications, utilities, and
miscellaneous charges........... 3 3 3
24.0 Printing and reproduction......... 2 2 2
25.1 Advisory and assistance services.. 4 7 7
25.2 Other services.................... 12 13 12
25.3 Purchases of goods and services
from Government accounts........ 1 1
25.7 Operation and maintenance of
equipment....................... 1 2 2
26.0 Supplies and materials............ 1 1 1
31.0 Equipment......................... 3 3 3
--------- --------- ----------
99.0 Subtotal, direct obligations.. 151 166 168
99.5 Below reporting threshold......... 3 1
--------- --------- ----------
99.9 Total obligations............... 154 166 169
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0212-0-1-276 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 1,335 1,377 1,377
---------------------------------------------------------------------------

Geothermal Resources Development Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0206-0-1-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 1 1
24.40 Unobligated balance available, end
of year: Uninvested............. 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

This loan guarantee program was started in 1979 to subsidize loans
for geothermal energy projects too risky to acquire private sector
financing on their own. The fund is no longer in operation, and has been
closed pursuant to 31 U.S.C. 1555.

Clean Coal Technology

[(rescission)] (deferral)

Of the funds made available under this heading for obligation in
[fiscal year 1997 or] prior years, [$101,000,000 are rescinded]
$10,000,000 of such funds shall not be available until October 1, 1999;
$15,000,000 shall not be available until October 1, 2000; and
$15,000,000 shall not be available until October 1, 2001: Provided, That
funds made available in previous appropriations Acts shall be available
for any ongoing project regardless of the separate request for proposal
under which the project was selected: Provided further, That not to
exceed $14,900,000 in fiscal year 1999 may be used for administrative
oversight of the Clean Coal Technology Program. (Department of the
Interior and Related Agencies Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total obligations................. 203 219 303
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 932 732 411
22.00 New budget authority (gross)...... -2 -101 -40
22.10 Resources available from
recoveries of prior year
obligations..................... 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 934 631 371
23.95 New obligations................... -203 -219 -303
24.40 Unobligated balance available, end
of year: Uninvested............. 732 411 67
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 15
Unobligated balance rescinded:

40.36 Unobligated balance rescinded... -17 -101
40.36 Unobligated balance deferred.... -40
--------- --------- ----------
43.00 Appropriation (total)........... -2 -101 -40
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 206 307 376
73.10 New obligations................... 203 219 303
73.20 Total outlays (gross)............. -98 -150 -183
73.45 Adjustments in unexpired accounts. -4
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 307 376 496
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 98
86.98 Outlays from permanent balances... 150 183
--------- --------- ----------
87.00 Total outlays (gross)........... 98 150 183
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -2 -101 -40
90.00 Outlays........................... 98 150 183
---------------------------------------------------------------------------

Public Law 99-190, making continuing appropriations for 1986,
provided $400 million from funds in the Energy Security Reserve in the
Department of the Treasury for a new Clean Coal Technology program in
the Department of Energy. This program was authorized under the Clean
Coal Technology Reserve proviso of Public Law 98-473 to subsidize the
construction and operation of facilities to demonstrate the potential
commercial feasibility of such technologies.

Termination of the domestic Clean Coal Technology program, after
completion of projects now underway, is part of the President's
realignment of the Department of Energy. The Administration's policy
calls for limiting the program's existing domestic projects which have
been selected under contract. If a project is canceled, the canceled
project's funding will either be used to meet the needs of remaining on-
going projects, or will be rescinded if the funds are not needed by the
program.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0235-0-1-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 5 5 5
12.1 Civilian personnel benefits....... 1 1 1
25.1 Advisory and assistance services.. 3 3 3
25.2 Other services.................... 5 5 5
25.3 Purchases of goods and services
from Government accounts........ 1 1 1
41.0 Grants, subsidies, and
contributions................... 188 204 288
--------- --------- ----------
99.9 Total obligations............... 203 219 303
---------------------------------------------------------------------------

[[Page 378]]

Personnel Summary

Alternative Fuels Production

(including transfer of funds)

Moneys received as investment income on the principal amount in the
Great Plains Project Trust at the Norwest Bank of North Dakota, in such
sums as are earned as of October 1, [1997,] 1998 shall be deposited in
this account and immediately transferred to the general fund of the
Treasury. Moneys received as revenue sharing from operation of the Great
Plains Gasification Plant shall be immediately transferred to the
general fund of the Treasury. (Department of the Interior and Related
Agencies Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5180-0-2-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 5 3 3
22.00 New budget authority (gross)...... -3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2 3 3
24.40 Unobligated balance available, end
of year: Uninvested............. 3 3 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.36 Unobligated balance rescinded... -3
Permanent:

Spending authority from
offsetting collections:
68.00 Offsetting collections (cash). 1 2 1
68.27 Capital transfer to general
fund........................ -1 -2 -1
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)...................
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... -3
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 10 10 10
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 10 10 10
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Interest from principal
in the Great Plains Project
Trust......................... -1 -2 -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -4 -2 -1
90.00 Outlays........................... -2 -1
---------------------------------------------------------------------------

This program was established in 1980 for the purpose of expediting
the development and production of alternative fuels.

When the Synthetic Fuels Corporation was declared to be operational
in 1982, the uncommitted and unobligated funds remaining in the program
were transferred to the Energy Security Reserve for use by the Synthetic
Fuels Corporation, with the exception of the loan guarantee for the
Great Plains Gasification Project, which remained under the jurisdiction
of the Department of Energy. The Department exercised its authority to
borrow from the Treasury to repay the Federal Financing Bank upon
default of the borrower in 1985. This loan was repaid, along with
accrued interest, by a Supplemental appropriation in 1986. The
Department acquired ownership of the Great Plains plant by foreclosure,
which was completed on July 14, 1986, and continued operation of the
plant without the expenditure of appropriated funds. On October 31,
1988, the Department completed the process of establishing an asset
purchase agreement for the Great Plains Gasification Plant by settlement
with Basin Electric Power Cooperative Association. Responsibilities for
other related agreements--Trust Agreement, Gas Transportation Agreement,
Gas Purchase Agreement--were also settled. Under the terms of the asset
purchase agreement a check for $85 million was provided to the
Government as an initial payment. These agreements are currently the
subject of litigation between the Department, Dakota Gasification
Company and the four pipeline companies which purchase the synthetic gas
from the plant. Future revenue sharing payments to the Department are
dependent upon the outcome of this litigation as well as natural gas
prices.

The parties to litigation negotiated settlement agreements in
principle in December 1993. Settlement agreements dated February 16,
1994, have been signed. These settlement agreements resolve all past
disputes as well as restructure the Gas Purchase Agreements pricing
provisions. The settlement agreements are contingent upon final Federal
Energy Regulatory Commission (FERC) approval.

One of the four pipeline companies, which purchases 20 percent of
the plant's output of synthetic natural gas received Federal Energy
Regulatory Commission final approval in December 1994 for its settlement
agreement. On December 18, 1996 initial FERC approval was granted for
the remaining three pipeline companies in FERC Opinion 410.

Elk Hills School Lands Fund

For necessary expenses in fulfilling the first installment payment
under the Settlement Agreement entered into by the United States and the
State of California on October 18, 1996, as authorized by section 3415
of Public Law 104-106, $36,000,000 for payment to the State of
California for the State Teachers' Retirement Fund from the Elk Hills
School Land Fund.

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5428-0-2-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 324
Receipts:
02.01 Elk Hills school lands fund....... 324
--------- --------- ----------
04.00 Total: Balances and collections... 324 324
Appropriation:
05.01 Elk Hills school lands fund....... -36
07.99 Total balance, end of year........ 324 288
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 36
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 36
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 36
23.95 New obligations................... -36
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.20 Appropriation (special fund,
definite)....................... 36
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 New obligations................... 36
73.20 Total outlays (gross)............. -36
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 36
----------------------------------------------------------------------------

[[Page 379]]

Net budget authority and outlays:
89.00 Budget authority.................. 36
90.00 Outlays........................... 36
---------------------------------------------------------------------------

Title XXXIV, Subtitle B of Public Law 104-106 requires the
Department to sell government's interest in Naval Petroleum Reserve No.
1 (Elk Hills) pursuant to the terms of the Act. The sale is scheduled to
occur in February 1998, following a statutorily-required 31-day
congressional review period.

Section 3415 of the Act requires, among other things, that the
Department make an offer of settlement based on the fair value of the
State of California's longstanding claims to two parcels of land
(``school lands'') within the Reserve. Under the Act, as is provided for
in appropriation acts, nine percent of the net proceeds is to be
reserved in contingent fund in the Treasury for payment to the State. In
compliance with the Act and in order to remove any cloud over title
which could diminish the sales value of the Reserve, the Department
entered into a Settlement Agreement with the State on October 18, 1996.
That Agreement calls for payment to the State, subject to
appropriations, of nine percent of the net proceeds of sale, payable
over a seven-year period (without interest), commencing in Fiscal Year
1999. Under the Settlement Agreement and provided that funds are
appropriated, the first five installments are for $36,000,000 each year,
and the remaining balance is to be paid in two equal installments in
years six and seven, FY 2004 and FY 2005.

Payments to States Under Federal Power Act

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5105-0-2-806 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............
Receipts:
02.01 Licenses under Federal Power Act
from public lands and national
forests, payment to States (37
1/2%),Energy.................... 3 3 3
Appropriation:
05.01 Payments to States under Federal
Power Act....................... -3 -3 -3
07.99 Total balance, end of year........
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total obligations (object class
41.0)........................... 3 3 3
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 3 3 3
22.00 New budget authority (gross)...... 3 3 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 6 6 6
23.95 New obligations................... -3 -3 -3
24.40 Unobligated balance available, end
of year: Uninvested............. 3 3 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
60.25 Appropriation (special fund,
indefinite)..................... 3 3 3
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 New obligations................... 3 3 3
73.20 Total outlays (gross)............. -3 -3 -3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 3 3 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3 3 3
90.00 Outlays........................... 3 3 3
---------------------------------------------------------------------------

The States are paid 37.5 percent of the receipts from licenses for
occupancy and use of national forests and public lands within their
boundaries issued by the Federal Energy Regulatory Commission (16 U.S.C.
810).

Nuclear Waste Disposal Fund

For nuclear waste disposal activities to carry out the purposes of
Public Law 97-425, as amended, including the acquisition of real
property or facility construction or expansion, [$160,000,000]
$190,000,000, to remain available until expended, to be derived from the
Nuclear Waste Fund; of which [$4,000,000 shall be available to the
Nuclear Regulatory Commission to license a multi-purpose canister
design; and of which not to exceed $5,000,000] not to exceed $4,875,000
may be provided to the State of Nevada solely to conduct scientific
oversight responsibilities pursuant to the Nuclear Waste Policy Act of
1982, and of which not to exceed $5,540,000 may be provided to affected
local governments, as defined in Public Law 97-425, to conduct
appropriate activities pursuant to the Act: Provided, That the
distribution of the funds [to] as determined by the units of local
government shall be approved by the Department of Energy: Provided
further, That the funds shall be made available to the State and units
of local government by direct payment: Provided further, That within
ninety days of the completion of each Federal fiscal year, The State and
each local entity shall provide certification to the Department of
Energy, that all funds expended from such payments have been expended
for activities as defined in Public Law 97-425. Failure to provide such
certification shall cause such entity to be prohibited from any further
funding provided for similar activities: Provided further, That none of
the funds herein appropriated may be: (1) used directly or indirectly to
influence legislative action on any matter pending before Congress or a
State legislature or for lobbying activity as provided in 18 U.S.C.
1913; (2) used for litigation expenses; or (3) used to support
multistate efforts or other coalition building activities inconsistent
with the restrictions contained in this Act[: Provided further, That
none of the funds provided herein shall be distributed to the State of
Nevada by direct payment, grant, or other means, for financial
assistance under section 116 of the Nuclear Waste Policy Act of 1982, as
amended: Provided further, That the foregoing proviso shall not apply to
payments in lieu of taxes under section 116(c)(3)(A) of the Nuclear
Waste Policy Act of 1982, as amended]. (Energy and Water Development
Appropriations Act, 1998.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5227-0-2-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 5,201 6,072 6,950
Receipts:
02.01 Receipts from nuclear powered
electric utilities.............. 596 602 625
02.02 Net earnings on investments....... 471 450 507
--------- --------- ----------
02.99 Total receipts.................. 1,067 1,052 1,132
--------- --------- ----------
04.00 Total: Balances and collections... 6,268 7,124 8,082
Appropriation:
05.01 Nuclear Waste Fund................ -182 -156 -190
05.02 Nuclear Regulatory Commission..... -11 -15 -19
05.04 Nuclear Waste Technical Review
Board........................... -3 -3 -3
--------- --------- ----------
05.99 Subtotal appropriation............ -196 -174 -212
07.99 Total balance, end of year........ 6,072 6,950 7,870
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total obligations................. 179 178 190
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.41 Unobligated balance available,
start of year: U.S. Securities:
Par value....................... 19 22
22.00 New budget authority (gross)...... 182 156 190
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 201 178 190
23.95 New obligations................... -179 -178 -190

[[Page 380]]

24.41 Unobligated balance available, end
of year: U.S. Securities: Par
value........................... 22
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.20 Budget authority (appropriation).. 182 160 190
40.79 Line item veto cancellation....... -4
--------- --------- ----------
43.00 Appropriation (total)........... 182 156 190
----------------------------------------------------------------------------

Change in unpaid obligations:
72.41 Unpaid obligations, start of year:
Obligated balance: U.S.
Securities: Par value........... 79 93 101
73.10 New obligations................... 179 178 190
73.20 Total outlays (gross)............. -165 -169 -173
74.41 Unpaid obligations, end of year:
Obligated balance: U.S.
Securities: Par value........... 93 101 118
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 90 78 95
86.93 Outlays from current balances..... 75 91 78
--------- --------- ----------
87.00 Total outlays (gross)........... 165 169 173
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 182 156 190
90.00 Outlays........................... 165 169 173
---------------------------------------------------------------------------

The nuclear waste disposal program consists of efforts related to
the development, acquisition, and operation of facilities for the
disposal of civilian and defense high level nuclear waste. These
activities are funded by appropriations from the Nuclear Waste Fund
which is paid for by the users of the disposal service, and the Defense
Nuclear Waste Disposal account, which was established by Congress as
part of the 1993 Energy and Water Development Appropriation (P.L. 102-
377) in lieu of a payment from the Department of Energy into the Nuclear
Waste Fund for activities related to the disposal of defense high-level
waste.

In FY 1999, the Office of Civilian Radioactive Waste Management
Program will focus on the completion of activities that are in direct
support of key program milestones that are planned for completion within
the next several fiscal years. The ongoing technical, scientific, and
environmental documentation activities continue to be critical to the
Program's ability to meet successfully three of the most significant
milestones since the Program's inception--issuance of the Final
Environmental Impact Statement and accompanying Record of Decision in
2000; preparation and submission of the Site Recommendation Report to
the President in 2001 should the Yucca Mountain site be found suitable
for development as a repository; and the preparation and submission of
the License Application for repository construction to the Nuclear
Regulatory Commission in 2002.

The key FY 1999 activities that the Program will complete to support
the major outyear milestones noted above are: 1) issuance of the draft
Environmental Impact Statement for the Yucca Mountain site for public
review and comment, as required by the National Environmental Policy
Act; 2) completion of the Phase II Design of the Mined Geologic Disposal
System to support the total system performance assessment that will be a
key component of the Program's License Application for the Yucca
Mountain site, should it be found suitable; and 3) completion of the
Peer Review for the Total System Performance Assessment component of the
Viability Assessment. This activity also supports the planned License
Application.

The outyear funding for this account does not reflect the impact of
the 1998 viability assessment.

Status of Funds (in millions of dollars)

0220 Nuclear waste disposal fund ,
Energy........................ 596 602 625
Intragovernmental transactions:

0240 Earnings on investments, Nuclear
waste disposal fund , Energy.. 471 450 507
--------- --------- ----------
0299 Total cash income............... 1,067 1,052 1,132
Cash outgo during year:
0500 Nuclear waste disposal fund....... -165 -169 -173
0502 Nuclear Waste Technical Review
Board,.......................... -3 -3 -3
0503 Nuclear Regulatory Commission..... -11 -14 -18
--------- --------- ----------
0599 Total cash outgo (-).............. -179 -186 -194
Unexpended balance, end of year:
0701 U.S. Securities: U.S. securities:
Par value....................... 6,188 7,054 7,992
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5227-0-2-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 15 17 17
12.1 Civilian personnel benefits....... 3 4 4
21.0 Travel and transportation of
persons......................... 1 1 1
23.2 Rental payments to others......... 1 2 2
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.1 Advisory and assistance services.. 132 125 136
25.2 Other services.................... 3 4 4
25.3 Purchases of goods and services
from Government accounts........ 10 11 12
25.4 Operation and maintenance of
facilities...................... 5 5 5
41.0 Grants, subsidies, and
contributions................... 8 8 8
--------- --------- ----------
99.9 Total obligations............... 179 178 190
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-5227-0-2-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 232 206 187
---------------------------------------------------------------------------

Uranium Enrichment Decontamination and Decommissioning Fund

For necessary expenses in carrying out uranium enrichment facility
decontamination and decommissioning, remedial actions and other
activities of title II of the Atomic Energy Act of 1954 and title X,
subtitle A of the Energy Policy Act of 1992, [$220,200,000]
$277,000,000, to be derived from the Fund, to remain available until
expended: Provided, That [$40,000,000] $35,000,000 of amounts derived
from the Fund for such expenses shall be available in accordance with
title X, subtitle A, of the Energy Policy Act of 1992. (Energy and Water
Development Appropriations Act, 1998.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5231-0-2-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 439 818 1,190
Receipts:
02.01 Assessments....................... 165 148 179
02.02 Earnings on investments........... 37 56 73
02.03 General fund payment.............. 377 388 398
--------- --------- ----------
02.99 Total receipts.................. 579 592 650
--------- --------- ----------
04.00 Total: Balances and collections... 1,018 1,410 1,840
Appropriation:
05.01 Uranium enrichment decontamination
and decommissioning fund........ -200 -220 -277
07.99 Total balance, end of year........ 818 1,190 1,563
---------------------------------------------------------------------------

[[Page 381]]

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Environmental restoration and
waste management................ 176 180 242
00.02 Uranium / thorium reimbursements.. 34 40 35
--------- --------- ----------
10.00 Total obligations............... 210 220 277
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 210 220 277
23.95 New obligations................... -210 -220 -277
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.20 Appropriation (special fund,
definite)....................... 200 220 277
42.00 Transferred from other accounts... 10
--------- --------- ----------
43.00 Appropriation (total)........... 210 220 277
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 40 70 76
73.10 New obligations................... 210 220 277
73.20 Total outlays (gross)............. -180 -214 -260
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 70 76 93
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 142 154 194
86.93 Outlays from current balances..... 38 60 66
--------- --------- ----------
87.00 Total outlays (gross)........... 180 214 260
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 210 220 277
90.00 Outlays........................... 180 214 260
---------------------------------------------------------------------------

The Uranium Enrichment Decontamination and Decommissioning Fund will
cover D&D, remedial action and other costs associated with environmental
clean-up activities at sites leased and operated by the United States
Enrichment Corporation as well as DOE facilities at these and other
sites. A portion of the Fund will be used to reimburse current owners of
uranium and thorium sites for a portion of their remediation costs for
tailings attributable to the sale of uranium or thorium to the Federal
Government.

This Fund includes sites and/or projects that will be completed by
2006 at EM national laboratories or other facilities where DOE will
continue to have a presence beyond the year 2006. Sites with projects
included in this account are K-25 Site and Oak Ridge Reservation,
Tennessee; Paducah Gaseous Diffusion Plant, Kentucky; and Portsmouth
Gaseous Diffusion Plant, Ohio.

Status of Funds (in millions of dollars)

0101 Par value....................... 480 888 1,266
0102 Unrealized discounts............ -1
--------- --------- ----------
0199 Total balance, start of year.... 479 888 1,266
Cash income during the year:
Governmental receipts:

0200 Assessments, Decontamination and
Decommissioning Fund.......... 165 148 179
Intragovernmental transactions:

0240 Earnings on investments,
Decontamination and
Decommissioning Fund.......... 37 56 73
0241 General fund payment--Defense,
Decontamination and
Decommissioning Fund.......... 377 388 398
--------- --------- ----------
0299 Total cash income............... 579 592 650
Cash outgo during year:
0500 Uranium enrichment decontamination
and decommissioning fund........ -180 -214 -260
0645 Balance transferred, net.......... 10
Unexpended balance, end of year:
U.S. Securities:

0701 Par value....................... 888 1,266 1,656
0702 Unrealized discounts............
--------- --------- ----------
0799 Total balance, end of year...... 888 1,266 1,656
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5231-0-2-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 8 9 11
25.2 Other services.................... 47 49 62
25.4 Operation and maintenance of
facilities...................... 153 160 201
41.0 Grants, subsidies, and
contributions................... 2 2 3
--------- --------- ----------
99.9 Total obligations............... 210 220 277
---------------------------------------------------------------------------

Public enterprise funds:

Isotope Production and Distribution Program Fund

Program and Financing (in millions of dollars)

Obligations by program activity:
09.00 Reimbursable program.............. 29 28 33
--------- --------- ----------
10.00 Total obligations............... 29 28 33
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 10 5 5
22.00 New budget authority (gross)...... 24 28 33
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 34 33 38
23.95 New obligations................... -29 -28 -33
24.40 Unobligated balance available, end
of year: Uninvested............. 5 5 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 24 28 33
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 7 7 7
73.10 New obligations................... 29 28 33
73.20 Total outlays (gross)............. -30 -28 -33
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 7 7 7
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from current balances..... 6
86.97 Outlays from new permanent
authority....................... 24 28 33
--------- --------- ----------
87.00 Total outlays (gross)........... 30 28 33
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -24 -28 -33
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 6
---------------------------------------------------------------------------

The charter of the Department of Energy (DOE) Isotope Production and
Distribution Program covers the production and sale of isotope products
and related services to the user community utilizing Government-owned
facilities. The isotopes produced by the Department are those that can
be produced in existing DOE production and research facilities dedicated
to the products required by the Isotope Production and Distribution
program. The isotopes are sold at their market value or at a price
determined to be in the best interest of the government for use in
medical diagnoses and therapy, medical and scientific research, and
industrial applications.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-4180-0-3-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 1

[[Page 382]]

25.4 Operation and maintenance of
facilities...................... 27 28 33
31.0 Equipment......................... 1
--------- --------- ----------
99.9 Total obligations............... 29 28 33
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-4180-0-3-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
2001 Total compensable workyears: Full-
time equivalent employment...... 10
---------------------------------------------------------------------------

Trust Funds

Advances for Cooperative Work

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-8575-0-7-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 1 1 1
24.40 Unobligated balance available, end
of year: Uninvested............. 1 1 1
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 18 18 18
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 18 18 18
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 2
---------------------------------------------------------------------------

In past years, this account received advances from domestic and
foreign sources, to fund research and development activities for
civilian reactor, magnetic fusion, and basic energy sciences. Sources
also provided funds for defense programs, the technical information
management program, and conducting the Naval Petroleum Reserves
Community Wells Protection program. The account will be terminated when
balances have been expended.

POWER MARKETING ADMINISTRATIONS

[Operation and Maintenance, Alaska Power Administration]

[For necessary expenses of operation and maintenance of projects in
Alaska and of marketing electric power and energy, $3,500,000, to remain
available until expended; and, in addition, $10,000,000 for capital
assets acquisition, to remain available until expended.] (Energy and
Water Development Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Program direction................. 2 4
00.03 Transition and termination........ 1 2
00.04 Capital assets acquisition........ 10
--------- --------- ----------
10.00 Total obligations............... 2 15 2
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 6 8 7
22.00 New budget authority (gross)...... 4 14
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 10 22 7
23.95 New obligations................... -2 -15 -2
24.40 Unobligated balance available, end
of year: Uninvested............. 8 7 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 4 14
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 5 4 3
73.10 New obligations................... 2 15 2
73.20 Total outlays (gross)............. -3 -16 -3
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 4 3 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 3 14
86.93 Outlays from current balances..... 3
--------- --------- ----------
87.00 Total outlays (gross)........... 3 16 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 4 14
90.00 Outlays........................... 3 16 3
---------------------------------------------------------------------------

The Alaska Power Administration (APA) is responsible for operation
and maintenance and power marketing for the Eklutna and Snettisham
hydroelectric projects in accordance with the authorizing legislation
for each project.

On November 28, 1995, the Alaska Power Administration Asset Sale and
Termination Act (Public Law 104-58) was signed into law. Consistent with
this legislation, APA's remaining activities will concentrate on the
termination of the Alaska Power Administration and transfer of its
assets to non-federal ownership by August 20, 1998. Unobligated balances
will be used for these activities until APA is terminated in 1999.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0304-0-1-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 1 1 1
25.2 Other services.................... 1 1 1
31.0 Equipment......................... 12
--------- --------- ----------
99.0 Subtotal, direct obligations.. 2 14 2
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total obligations............... 2 15 2
---------------------------------------------------------------------------

Personnel Summary

Operation and Maintenance, Southeastern Power Administration

For necessary expenses of operation and maintenance of power
transmission facilities and of marketing electric power and energy
pursuant to the provisions of section 5 of the Flood Control Act of 1944
(16 U.S.C. 825s), as applied to the southeastern power area,
[$12,222,000] $8,500,000, to remain available until expended; in
addition, notwithstanding 31 U.S.C. 3302, not to exceed [$20,000,000]
$28,000,000 in reimbursements [for transmission wheeling and ancillary
services,], of which $20,000,000 is for transmission wheeling and
ancillary services and $8,000,000 is for power purchases at the Richard
B. Russell Project, to remain available until expended. (Energy and
Water Development Appropriations Act, 1998.)

[[Page 383]]

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Program direction............... 4 4 4
00.02 Purchase power and wheeling..... 20 12 7
--------- --------- ----------
00.91 Subtotal, direct program...... 24 16 11
09.01 Reimbursable program.............. 20 28
--------- --------- ----------
10.00 Total obligations............... 24 36 39
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 14 6 2
22.00 New budget authority (gross)...... 16 32 37
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 30 38 39
23.95 New obligations................... -24 -36 -39
24.40 Unobligated balance available, end
of year: Uninvested............. 6 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 16 12 9
Permanent:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 20 28
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 16 32 37
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 2 3 7
73.10 New obligations................... 24 36 39
73.20 Total outlays (gross)............. -24 -32 -37
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 3 7 9
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 16 12 9
86.93 Outlays from current balances..... 8
86.97 Outlays from new permanent
authority....................... 20 28
--------- --------- ----------
87.00 Total outlays (gross)........... 24 32 37
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -20 -28
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 16 12 9
90.00 Outlays........................... 24 12 9
---------------------------------------------------------------------------

The Southeastern Power Administration (SEPA) markets power generated
at Corps of Engineers hydroelectric generating plants in an eleven-State
area of the Southeast. Deliveries are made by means of transmission
facilities owned by others. There are 23 projects now in operation.

SEPA sells wholesale power primarily to publicly and cooperatively-
owned electric distribution utilities using wheeling and pooling
agreements with the region's large private utilities to provide firm
power to its customers. SEPA does not own or operate any transmission
facilities. Its long-term contracts provide for periodic electric rate
adjustments to ensure that the Federal Government recovers costs of
operation and capital invested in power, with interest, in keeping with
statutory requirements.

The SEPA program includes the following activities:
Program direction.--Provision is made for negotiation and
administration of power contracts, collection of revenues,
development of wholesale power rates, the amortization of power
investment, investigation and planning of proposed water resources
projects, scheduling and dispatch of power generation, scheduling
storage and release of water, administration of contractual
operation requirements, and determination of methods of operating
generating plants individually and in coordination with others to
obtain maximum utilization of resources. Proprietary receipts
deposited in the Treasury were $154 million for fiscal year 1997 and
are estimated to be $145 million for fiscal year 1998 and $170
million for fiscal year 1999.
Purchase power and wheeling.--Provision is made for the payment
of wheeling fees and for the purchase of electricity in connection
with disposal of power under contracts with utility companies. After
FY 1999, SEPA customers will pay wheeling fees directly to
transmission suppliers.

Based on Administration policy the Southeastern Power Administration
will set rates, consistent with current law, to recover the full cost of
the Civil Service Retirement System and Post-Retirement Health Benefits,
for its employees, that have not been recovered in the past. The
estimated increase in receipts to the Treasury is $3 million annually.

For display purposes only, the unobligated balances of this account
include a continuing fund of $50 thousand, maintained from receipts from
the transmission and sale of electric power in the southeastern area,
which is available to defray expenses necessary to ensure continuity of
services (16 U.S.C. 825s-2).

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 4 4 4
25.2 Other services.................. 20 12 7
--------- --------- ----------
99.0 Subtotal, direct obligations.. 24 16 11
99.0 Reimbursable obligations.......... 20 28
--------- --------- ----------
99.9 Total obligations............... 24 36 39
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0302-0-1-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 41 41 41
---------------------------------------------------------------------------

Operation and Maintenance, Southwestern Power Administration

For necessary expenses of operation and maintenance of power
transmission facilities and of marketing electric power and energy, and
for construction and acquisition of transmission lines, substations and
appurtenant facilities, and for administrative expenses, including
official reception and representation expenses in an amount not to
exceed $1,500 in carrying out the provisions of section 5 of the Flood
Control Act of 1944 (16 U.S.C. 825s), as applied to the southwestern
power area, [$25,210,000] $26,000,000, to remain available until
expended; in addition, notwithstanding the provisions of 31 U.S.C. 3302,
not to exceed [$4,650,000] $4,200,000 in reimbursements, to remain
available until expended. (Energy and Water Development Appropriations
Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Systems operation and
maintenance................... 2 2 3
00.02 Purchase power and wheeling..... 1
00.03 Construction.................... 6 7 7
00.04 Program direction............... 18 17 16
--------- --------- ----------
00.91 Total direct program.......... 27 26 26
09.01 Reimbursable program.............. 4 5 11
--------- --------- ----------
10.00 Total obligations............... 31 31 37
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 2 1

[[Page 384]]

22.00 New budget authority (gross)...... 29 30 37
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 32 31 37
23.95 New obligations................... -31 -31 -37
24.40 Unobligated balance available, end
of year: Uninvested............. 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 25 25 26
Permanent:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 4 5 11
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 29 30 37
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 16 14 14
73.10 New obligations................... 31 31 37
73.20 Total outlays (gross)............. -32 -32 -37
73.45 Adjustments in unexpired accounts. -1
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 14 14 14
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 20 18 19
86.93 Outlays from current balances..... 8 9 7
86.97 Outlays from new permanent
authority....................... 4 5 11
--------- --------- ----------
87.00 Total outlays (gross)........... 32 32 37
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -7
88.40 Non-Federal sources........... -4 -5 -4
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -4 -5 -11
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 25 25 26
90.00 Outlays........................... 28 27 26
---------------------------------------------------------------------------

The Southwestern Power Administration (Southwestern) operates in a
six-State area as a marketing agent for hydroelectric power produced at
Corps of Engineers dams. It also operates and maintains some 2,225
kilometers (1,380 miles) of high voltage transmission lines, 24
substations and switching stations, and 46 VHF radio and microwave
stations. Southwestern sells its power at wholesale primarily to
publicly and cooperatively owned electric distribution utilities. Its
power sales contracts provide for periodic rate adjustments to ensure
that the Federal Government recovers all costs of operation and all
capital invested in power, with interest, in keeping with statutory
requirements.

Southwestern also is responsible for scheduling and dispatching
power, negotiating power sales contracts, and constructing facilities
required to meet changing customer load requirements.

Program Direction.--This activity provides for the overall direction
and support of Southwestern's program activities and includes salaries
and benefits, travel, support services and other related expenses such
as rent, utilities, communications, supplies, materials and building
maintenance.

Systems operation and maintenance.--Provision is made for
engineering assessments of issues and alternatives that could adversely
impact or optimize the operation of Southwestern's hydroelectric
resources. Provision also is made for maintenance and improvement of the
transmission system and related facilities to ensure reliable service,
negotiation and administration of power contracts, collection of
revenue, development of wholesale power rates and the amortization of
the power investment. Actual proprietary receipts in the amount of $102
million were deposited in the Treasury in 1997. Estimated proprietary
receipts in the amount of $95 million in 1998 and $93 million in 1999
are expected.

Purchase power and wheeling.--Provision is made for the payment of
wheeling fees and for the purchase of energy in connection with the
marketing of power under contracts with utility companies.

Construction.--The construction program provides for transmission,
substation, switching and control facility projects to transmit power
generated at Corps of Engineers' hydroelectric projects in the
Southwest. This program is coordinated with the Corps of Engineers'
construction program and customer requirements.

Reimbursable program.--This program involves services provided by
Southwestern Power Administration to others under various types of
reimbursable arrangements.

Based on Administration policy the Southwestern Power Administration
will set rates, consistent with current law, to recover the full cost of
the Civil Service Retirement System and Post-Retirement Health Benefits,
for its employees, that have not been recovered in the past. The
estimated increase in receipts to the Treasury is $2 million annually.

For display purposes only, the unobligated balances of this account
include a continuing fund of $300 thousand, which is replenished from
power receipts and is available permanently for emergency expenses that
would be necessary to ensure continuity of service (16 U.S.C. 825s-1; 63
Stat. 767; 65 Stat. 249).

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 10 10 10
12.1 Civilian personnel benefits..... 2 2 2
21.0 Travel and transportation of
persons....................... 1 1 1
23.1 Rental payments to GSA.......... 3 1 1
25.2 Other services.................. 7 8 7
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 3 3 4
--------- --------- ----------
99.0 Subtotal, direct obligations.. 27 26 26
99.0 Reimbursable obligations.......... 4 5 11
--------- --------- ----------
99.9 Total obligations............... 31 31 37
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0303-0-1-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 175 189 186
---------------------------------------------------------------------------

Construction, Rehabilitation, Operation and Maintenance, Western Area
Power Administration

(including transfer of funds)

For carrying out the functions authorized by title III, section
302(a)(1)(E) of the Act of August 4, 1977 (42 U.S.C. [7101 et seq.]
7152), and other related activities including conservation and renewable
resources programs as authorized, including [the replacement of not more
than two helicopters through transfers, exchanges, or sale, and]
official reception and representation expenses in an amount not to
exceed $1,500, [$189,043,000] $215,435,000, to remain available until
expended, of which [$182,806,000] $206,222,000 shall be derived from the
Department of the Interior Reclamation Fund: Provided, That of the
amount herein appropriated, [$5,592,000] $5,036,000 is for deposit into
the Utah Reclamation Mitigation and Conservation Account pursuant to
title IV of the Reclamation Projects Authorization and Adjustment Act of
1992[: Provided further, That

[[Page 385]]

the Secretary of the Treasury is authorized to transfer from the
Colorado River Dam Fund to the Western Area Power Administration
$5,592,000 to carry out the power marketing and transmission activities
of the Boulder Canyon project as provided in section 104(a)(4) of the
Hoover Power Plant Act of 1984, to remain available until expended].
(Energy and Water Development Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating expenses:

00.01 Systems operation and
maintenance................... 41 41 37
00.02 Purchase power and wheeling..... 61 54 54
00.04 Program direction............... 94 105 107
00.05 Utah mitigation and conservation
fund.......................... 6 6 5
--------- --------- ----------
00.91 Total operating expenses...... 202 206 203
01.01 Capital investment................ 25 22 21
09.01 Reimbursable program.............. 51 127 129
--------- --------- ----------
10.00 Total obligations............... 278 355 353
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 82 45 9
22.00 New budget authority (gross)...... 237 319 344
22.10 Resources available from
recoveries of prior year
obligations..................... 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 323 364 353
23.95 New obligations................... -278 -355 -353
24.40 Unobligated balance available, end
of year: Uninvested............. 45 9 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 8 6 9
40.20 Appropriation (special fund,
definite)..................... 186 183 206
40.35 Appropriation rescinded......... -11
42.00 Transferred from other accounts. 3 6
--------- --------- ----------
43.00 Appropriation (total)......... 186 195 215
Permanent:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 51 124 129
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 237 319 344
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 143 146 187
73.10 New obligations................... 278 355 353
73.20 Total outlays (gross)............. -269 -314 -333
73.45 Adjustments in unexpired accounts. -4
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 146 187 207
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 186 88 97
86.93 Outlays from current balances..... 32 102 107
86.97 Outlays from new permanent
authority....................... 51 124 129
--------- --------- ----------
87.00 Total outlays (gross)........... 269 314 333
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -38 -67 -63
88.40 Non-Federal sources........... -13 -57 -66
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -51 -124 -129
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 186 195 215
90.00 Outlays........................... 219 190 204
---------------------------------------------------------------------------

The Western Area Power Administration (Western) markets electric
power in 15 western States from federally-owned power plants operated
primarily by the Bureau of Reclamation, Corps of Engineers, and the
International Boundary and Water Commission. Western operates and
maintains approximately 16,850 circuit-miles of high-voltage
transmission lines and 258 substations/switchyards, and constructs
additions and modifications to existing facilities.

In keeping with statutory requirements, Western's long-term power
contracts allow for periodic rate adjustments to ensure that the Federal
Government recovers costs of operation, other costs allocated to power,
and the capital investment in power facilities, with interest.

Systems operation and maintenance.--A total of 13 power systems will
be operated and maintained.

Power is sold to wholesale customers such as municipalities,
cooperatives, irrigation districts, public utility districts, State and
Federal Government agencies, and private utilities. Receipts are
deposited in the Reclamation Fund, the Falcon and Amistad Operating and
Maintenance Fund, the General fund, the Colorado River Dam Fund, the
Central Valley Project Restoration Fund, the Colorado River Basins Power
Marketing Fund.

Purchase of power and wheeling.--The program provides for firming
energy purchases and wheeling necessary to meet power sales authorized
by law. Financing of this program consists of annual appropriated
financing and non-appropriated financing (net billing, bill crediting
Federal reimbursable, and non-Federal customer advances).

System construction.--Western's construction and rehabilitation
activity emphasizes replacement and upgrades of existing infrastructure
to sustain reliable power delivery to our customers, to contain annual
maintenance costs, and to improve overall operational efficiency.
Western will continue to participate in joint construction projects to
encourage more widespread transmission access.

Program direction.--This activity provides compensation and all
related expenses for the workforce that operates and maintains Western's
high voltage interconnected transmission system (systems operation and
maintenance program), and those that plan design, and supervise the
construction of replacement, upgrades and additions (system construction
program) to the transmission facilities.

Utah Mitigation and Conservation.--The request includes $5,036,000
for deposit into the Utah Reclamation Mitigation and Conservation
Account in the U.S. Treasury, pursuant to Title IV of the Reclamation
Projects Authorization and Adjustment Act of 1992. Funds are earmarked
primarily for environmental mitigation expenditures in the State of Utah
covering fish and wildlife, and recreation resources impacted by the
Colorado River Storage Project.

Reimbursable program.--This program involves services provided by
Western to others under various types of reimbursable arrangements.

Based on Adminstration policy, the Western Area Power Administration
will set rates, consistent with current law, to recover the full cost of
the Civil Service Retirement System and Post-Retirement Health Benefits,
for its employees, that have not been recovered in the past. The
estimated increase in receipts to the Treasury is $8 million annually.

For display purposes only, the unobligated balances of this account
include a continuing fund of $500 thousand, which is maintained from
deposits to the Reclamation Fund, and is available to ensure continuous
operation of power systems in the event of below normal hydropower
generation, equipment failure, or other damage caused by acts of God,
flood, drought, strikes, embargoes, or other conditions which might
cause interruptions in service.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 57 54 56
11.3 Other than full-time permanent 1 1 1

[[Page 386]]

11.5 Other personnel compensation.. 3 3 3
--------- --------- ----------
11.9 Total personnel compensation 61 58 60
12.1 Civilian personnel benefits..... 15 14 15
13.0 Benefits for former personnel... 1 1
21.0 Travel and transportation of
persons....................... 5 5 5
22.0 Transportation of things........ 2 3 3
23.1 Rental payments to GSA.......... 3 3 3
23.3 Communications, utilities, and
miscellaneous charges......... 5 4 5
25.2 Other services.................. 80 86 85
25.3 Purchases of goods and services
from Government accounts...... 1 2 1
26.0 Supplies and materials.......... 7 7 7
31.0 Equipment....................... 14 14 11
32.0 Land and structures............. 27 25 24
41.0 Grants, subsidies, and
contributions................. 6 6 5
--------- --------- ----------
99.0 Subtotal, direct obligations.. 227 228 224
99.0 Reimbursable obligations.......... 51 127 129
--------- --------- ----------
99.9 Total obligations............... 278 355 353
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-5068-0-2-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 1,100 1,168 1,168
---------------------------------------------------------------------------

Falcon and Amistad Operating and Maintenance Fund

For operation, maintenance, and emergency costs for the
hydroelectric facilities at the Falcon and Amistad Dams, [$970,000]
$1,010,000, to remain available until expended, and to be derived from
the Falcon and Amistad Operating and Maintenance Fund of the Western
Area Power Administration, as provided in section 423 of the Foreign
Relations Authorization Act, Fiscal Years 1994 and 1995. (Energy and
Water Development Appropriations Act, 1998.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5178-0-2-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 2 2 2
Receipts:
02.01 Falcon and Amistad operating and
maintenance fund................ 1 1 1
--------- --------- ----------
04.00 Total: Balances and collections... 3 3 3
Appropriation:
05.01 Falcon and Amistad operating and
maintenance fund................ -1 -1 -1
07.99 Total balance, end of year........ 2 2 2
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Operating Expense................. 1 1 1
--------- --------- ----------
10.00 Total obligations (object class
25.3)......................... 1 1 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1 1 1
23.95 New obligations................... -1 -1 -1
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.20 Appropriation (special fund,
definite)....................... 1 1 1
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 New obligations................... 1 1 1
73.20 Total outlays (gross)............. -1 -1 -1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 1 1 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1 1 1
90.00 Outlays........................... 1 1 1
---------------------------------------------------------------------------

Pursuant to section 423(c) of the Foreign Relations Authorization
Act, Fiscal Years 1994 and 1995, Western Area Power Administration is
requesting an appropriation from the Falcon and Amistad Operating and
Maintenance Fund, to defray operations, maintenance, and emergency
(O,M&E) expenses for the hydroelectric facilities at Falcon and Amistad
Dams on the Rio Grande River. Most of these funds will be made available
to the United States Section of the International Boundary and Water
Commission through a reimbursable agreement. $200,000 in the Fund is for
an emergency reserve that will remain unobligated unless unanticipated
expenses arise. Revenues in excess of O,M&E will be paid to the General
Fund to repay the costs of replacements and the original investment with
interest. Revenues resulting from the Falcon and Amistad dams power
system operations are deposited to the Falcon and Amistad Operating and
Maintenance Fund.

Public enterprise funds:

Bonneville Power Administration Fund

Expenditures from the Bonneville Power Administration Fund,
established pursuant to Public Law 93-454, are approved for [the
anadromous fish supplementation facilities in the Yakima River Basin,
Methow River Basin and Upper Snake River Basin, for the Billy Shaw
Reservoir resident fish substitution project, and for the resident trout
fish culture facility in Southeast Idaho; and] official reception and
representation expenses in an amount not to exceed $3,000.
During fiscal year [1998] 1999, no new direct loan obligations may
be made. (Energy and Water Development Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating expenses:

00.01 Power business line............. 814 992 1,036
00.02 Residential exchange............ 171 73 60
00.05 Bureau of Reclamation........... 46 43 43
00.06 Corps of Engineers.............. 86 95 98
00.07 Colville settlement............. 16 16 15
00.19 U.S. Fish & Wildlife............ 12 12 12
00.20 Planning council................ 8 8 7
00.21 Fish & wildlife................. 82 110 110
00.23 Transmission business line...... 179 179 177
00.24 Conservation & energy efficiency 32 41 36
00.25 Interest........................ 450 429 428
00.26 Pension and health benefits..... 2 4
--------- --------- ----------
00.91 Total operating expenses...... 1,896 2,000 2,026
Capital investment:

01.01 Power business line............. 19 50 74
01.02 Transmission services........... 134 147 136
01.03 Conservation & energy efficiency 20 16 9
01.04 Fish & wildlife................. 21 27 27
01.05 Capital equipment............... 7 9 7
01.06 Capitalized bonds premiums...... 8 5 5
--------- --------- ----------
01.91 Total capital investment...... 209 254 258
02.01 Projects funded in advance........ 16 30 29
--------- --------- ----------
10.00 Total obligations............... 2,121 2,284 2,313
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 235 424 424
22.00 New budget authority (gross)...... 2,310 2,284 2,313
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,545 2,708 2,737
23.95 New obligations................... -2,121 -2,284 -2,313
24.40 Unobligated balance available, end
of year: Uninvested............. 424 424 424
----------------------------------------------------------------------------

[[Page 387]]

New budget authority (gross), detail:
67.15 Authority to borrow (indefinite).. 221 202 118
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 2,294 2,309 2,359
68.47 Portion applied to debt
reduction..................... -205 -227 -164
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 2,089 2,082 2,195
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,310 2,284 2,313
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 46 30 20
73.10 New obligations................... 2,121 2,284 2,313
73.20 Total outlays (gross)............. -2,137 -2,294 -2,313
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 30 20 20
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 2,310 2,284 2,313
86.98 Outlays from permanent balances... -173 10
--------- --------- ----------
87.00 Total outlays (gross)........... 2,137 2,294 2,313
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -35 -90 -90
88.40 Non-Federal sources........... -2,259 -2,219 -2,269
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -2,294 -2,309 -2,359
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 16 -25 -46
90.00 Outlays........................... -157 -15 -46
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-4045-0-3-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 2 2 2
--------- --------- ----------
1290 Outstanding, end of year........ 2 2 2
---------------------------------------------------------------------------

Bonneville Power Administration (BPA) is the Federal electric power
marketing agency in the Pacific Northwest. BPA markets hydroelectric
power from 21 multipurpose water resource projects of the U.S. Army
Corps of Engineers and 8 projects of the U.S. Bureau of Reclamation,
plus some energy from non-Federal generating projects in the region.
These generating resources and BPA's transmission system, planned by the
end of 1999 to consist of an estimated 14,800 circuit miles of high-
voltage transmission lines and 400 substations, are operated as an
integrated power system with operating and financial results combined
and reported as the Federal Columbia River Power System (FCRPS). BPA is
the largest power wholesaler in the Northwest and provides about one-
half of the region's electric energy supply and about four-fifths of the
region's electric power transmission capacity.

BPA is responsible for meeting the net firm power requirements of
its requesting customers through a variety of means, including energy
conservation programs, acquisition of renewable and other resources, and
power exchanges with utilities both in and outside the region.

BPA will finance its operations on the basis of the self-financing
authority provided by Federal Columbia River Transmission System Act of
1974 (Transmission Act) (Public Law 93-454) and the new borrowing
authority provided by the Pacific Northwest Electric Power Planning and
Conservation Act (Pacific Northwest Power Act) (Public Law 96-501) for
energy conservation, renewable energy resources and capital fish
facilities. Authority to borrow is available to the BPA on a permanent,
indefinite basis. The amount of borrowing outstanding at any time cannot
exceed $3.75 billion.

Operating expenses: Transmission Services Business Line.--Provides
funding from revenues for electric transmission research and development
and program support of the capital investment program described below
for transmission services. Provides for operating an estimated 14,800
miles of line and 400 substations, and for maintaining the facilities
and equipment of the Bonneville transmission system in 1999.

Power Business Line.--Provides for the planning, contractual
acquisition and oversight of reliable, cost effective resources. These
resources are needed to serve BPA's portion of the region's forecasted
net electric load requirements. Also includes protection, mitigation and
enhancement of fish and wildlife affected by hydroelectric facilities on
the Columbia River and its tributaries in accordance with the Pacific
Northwest Power Act. Provides for payment of the operation and
maintenance (O&M) costs of the 29 U.S. Army Corps of Engineers and U.S.
Bureau of Reclamation power generation projects, and amortization on the
U.S. Bureau of Reclamation capital investment in power generating
facilities and irrigation assistance at Bureau facilities. Also provides
for extending the benefits of low cost Federal power to the residential
and small farm customers of investor-owned and publicly-owned utilities,
in accordance with the Pacific Northwest Power Act and for activities of
the Pacific Northwest Electric Power and Conservation Planning Council
required by the Pacific Northwest Power Act.

Energy Efficiency.--Provides for the planning, contractual
acquisition and oversight of reliable, cost effective conservation.

Interest.--Provides for payments to the U.S. Treasury for interest
on borrowings to finance BPA's transmission services, conservation,
capital equipment, fish and wildlife, and associated projects capital
programs under $3.75 billion borrowing authority provided by the
Transmission Act as amended by the Pacific Northwest Power Act and
replenished by Public Law 98-50. This category also includes interest on
Corps of Engineers, BPA and U.S. Bureau of Reclamation appropriated
debt.

Capital Investments: Transmission Services Business Line.--Provides
for the planning, design and construction of transmission lines,
substation and control system additions, replacements, and enhancements
to the FCRPS transmission system for a reliable, efficient and cost-
effective regional transmission system. Provides for planning, design,
and construction work to repair or replace existing transmission lines,
substations, control systems, and general facilities of the FCRPS
transmission system.

Power Business Line.--Provides for direct funding of additions,
improvements, and replacements at existing Federal hydroelectric
projects in the Northwest. Also provides for capital investments to
implement environmental activities, and protect, mitigate, and enhance
fish and wildlife affected by hydroelectric facilities on the Columbia
River and its tributaries, in accordance with the Pacific Northwest
Power Act.

Energy Efficiency.--Provides for the planning, contractual
acquisition and oversight of reliable, cost effective conservation.

Capital equipment.--Provides for general purpose ADP equipment,
office furniture and equipment, and software capital development in
support of all BPA programs.

Contingencies.--Although contingencies are not specifically funded,
the need may arise to provide for purchase of power in low-water years;
for repair and/or replacement of facilities affected by natural and man-
made emergencies, including the resulting additional costs for
contracting, construction, and operation and maintenance work; for
unavoidable increased costs for the planned program due to necessary but
unforeseen adjustments, including engineering and design changes,
contractor and other claims and relocations, or for payment of a
retrospective premium adjustment in excess nuclear property insurance.

[[Page 388]]

Financing.--The Transmission Act provides for the use by BPA of all
receipts, collections, and recoveries in cash from all sources,
including the sale of bonds, to finance the annual budget programs of
BPA. These receipts result primarily from the sale of power and wheeling
services. The Transmission Act also provides for authority to borrow
from the U.S. Treasury at rates comparable to borrowings at open market
rates for similar issues. As amended by the Pacific Northwest Power Act
and replenished by Public Law 98-50, it allows for $3.75 billion of
borrowing to be outstanding at any time. The fiscal year 1999 capital
obligations are estimated to be $258 million. To the extent BPA capital
borrowing authority is insufficient in 1999, BPA would use cash reserves
generated by revenues from customers, if available, to finance some of
these investments.

In FY 1997, BPA made payments to the Treasury of $775 million and
also expects to make payments of $774 million in 1998 and $712 million
in 1999. The 1999 payment will be distributed as follows: U.S. Army
Corps of Engineers, U.S. Fish and Wildlife Service O&M ($110 million),
interest on bonds and appropriations ($438 million), and amortization
($164 million).

Direct loans.--During FY 1999, no new direct loan obligations may be
made.

Operating results.--Total revenues are forecast at approximately
$2.3 billion in FY 1999.

It should be noted that BPA's revenue forecasts are based on several
critical assumptions about both the supply of and demand for Federal
energy. During the operating year, deviation from the conditions assumed
in a rate case may result in a variation in actual revenues of several
hundred million dollars from the forecast.

Consistent with Administration policy, BPA will continue to fully
recover, from the sale of electric power and transmission, funds
sufficient to cover the full cost of Civil Service Retirement System and
Post-Retirement Health Benefits for their employees. The entire cost of
BPA employees working under the Federal Employees Retirement System is
already fully recovered in wholesale electric power and transmission
rates.

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 89-4045-0-3-271 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 2,428 2,281 2,279 2,330
0102 Expense........................... -2,332 -2,083 -2,030 -2,055
------------ -------------- ------------ -------------
0199 Net income or loss................ 96 198 249 275
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

1101 Fund balances with Treasury..... 198 399 300 300
Investments in US securities:
1106 Receivables, net.............. 3 3 3 3
1206 Non-Federal assets: Receivables,
net............................. 197 170 170 170
1601 Net value of assets related to
pre-1992 direct loans receivable
and acquired defaulted
guaranteed loans receivable:
Direct loans, gross............. 2 2 2 2
Other Federal assets:

1802 Inventories and related
properties.................... 61 70 70 70
1803 Property, plant and equipment,
net........................... 3,258 3,257 3,283 3,296
1901 Other assets.................... 8,161 8,086 8,109 8,149
------------ -------------- ------------ -------------
1999 Total assets.................... 11,880 11,987 11,937 11,990
LIABILITIES:
2102 Federal liabilities: Interest
payable......................... 58 40 40 40
Non-Federal liabilities:

2201 Accounts payable................ 151 119 120 120
2203 Debt............................ 11,058 10,961 10,796 10,730
2205 Lease liabilities, net..........
2207 Other........................... 162 230 230 230
------------ -------------- ------------ -------------
2999 Total liabilities............... 11,429 11,350 11,186 11,120
NET POSITION:
3300 Cumulative results of operations.. 451 637 751 870
------------ -------------- ------------ -------------
3999 Total net position.............. 451 637 751 870
------------ -------------- ------------ -------------
4999 Total liabilities and net position 11,880 11,987 11,937 11,990
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 185 183 180
11.3 Other than full-time permanent.. 1 1 1
11.5 Other personnel compensation.... 9 9 9
--------- --------- ----------
11.9 Total personnel compensation.. 195 193 190
Civilian personnel benefits:

12.1 Civilian personnel benefits..... 2 4
12.1 Civilian personnel benefits..... 25 25 23
21.0 Travel and transportation of
persons......................... 10 10 9
22.0 Transportation of things.......... 5 5 5
23.1 Rental payments to GSA............ 10 10 10
23.2 Rental payments to others......... 9 9 9
23.3 Communications, utilities, and
miscellaneous charges........... 5 5 5
24.0 Printing and reproduction......... 1 1 1
25.1 Advisory and assistance services.. 1 2 1
25.2 Other services.................... 1,113 1,269 1,284
25.3 Purchases of goods and services
from Government accounts........ 202 223 223
25.5 Research and development contracts 7 7 7
26.0 Supplies and materials............ 16 16 16
31.0 Equipment......................... 46 46 46
32.0 Land and structures............... 17 17 17
41.0 Grants, subsidies, and
contributions................... 9 9 9
43.0 Interest and dividends............ 450 435 454
--------- --------- ----------
99.9 Total obligations............... 2,121 2,284 2,313
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-4045-0-3-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 2,929 2,930 2,755
---------------------------------------------------------------------------

Colorado River Basins Power Marketing Fund, Western Area Power
Administration

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Program direction................. 29 25 26
09.02 Colorado River storage project.... 59 90 67
09.03 Fort Peck project................. 6 7 7
09.04 Other projects.................... 1 3 1
--------- --------- ----------
10.00 Total obligations............... 95 125 101
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 19 27 27
22.00 New budget authority (gross)...... 104 125 101
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 123 152 128
23.95 New obligations................... -95 -125 -101
24.40 Unobligated balance available, end
of year: Uninvested............. 27 27 28
----------------------------------------------------------------------------

New budget authority (gross), detail:
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 130 141 117
68.27 Capital transfer to general fund -26 -16 -16
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 104 125 101
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 104 125 101
----------------------------------------------------------------------------

[[Page 389]]

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 14 14 14
73.10 New obligations................... 95 125 101
73.20 Total outlays (gross)............. -95 -125 -101
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 14 14 13
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 95 125 101
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -8 -8 -8
88.40 Non-Federal sources........... -122 -133 -109
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -130 -141 -117
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -26 -16 -16
90.00 Outlays........................... -35 -16 -16
---------------------------------------------------------------------------

Western's operation and maintenance and power marketing expenses for
the Colorado River Storage Project, the Colorado River Basin Project,
the Seedskadee Project, the Dolores Project and the Fort Peck Project
are financed from power revenues.

Western operates and maintains approximately 4,000 miles of
transmission lines, substations, switchyards, communications and control
equipment associated with this Fund. The personnel compensation and
related expenses for all these activities are quantified under Program
Direction. Wholesale power is provided to utilities over interconnected
high-voltage transmission systems. In keeping with statutory
requirements, long-term power contracts provide for periodic rate
adjustments to ensure that the Federal Government recovers all costs of
operation and all capital invested in power, with interest.

Colorado River Storage Project.--Western markets power and operates
and maintains the power transmission facilities of the Colorado River
Storage Project. Western also purchases electricity and pays wheeling
fees to meet firm and nonfirm commitments.

Colorado River Basin Project.--The Colorado River Basin Project
includes Western's expenses associated with the Central Arizona Project
and the United States entitlement from the Navajo coal-fired powerplant.
Revenues in excess of operating expenses are transferred to the Lower
Colorado River Basin Development Fund.

Fort Peck Project.--Revenue collected by Western is used to defray
operation and maintenance and power marketing expenses associated with
the power generation and transmission facilities of the Fort Peck
Project, Corps of Engineers--Civil, to defray emergency expenses, and to
ensure continuous operation. The Corps operates and maintains the power
generating facilities, and Western operates and maintains the
transmission system and performs power marketing functions.

Seedskadee Project.--Activity under the Seedskadee Project at
Fontenelle Dam in Wyoming was previously included in the Colorado River
Storage Project. In 1994, separate reporting was initiated to comply
with power repayment requirements.

Dolores Project.--Activity under the Dolores Project at McPhee Dam
in southwestern Colorado was previously included in the Colorado River
Storage Project. The facilities were transferred from the Bureau of
Reclamation to Western late in 1994. Separate reporting was initiated in
1994 to comply with power repayment requirements.

Based on Administration policy, Western Area Power Administration
will set rates, consistent with current law, to recover the full cost of
the Civil Service Retirement System and Post-Retirement Health Benefits,
for its employees, that have not been recovered in the past. The
estimated increase in receipts to the Treasury is $1 million annually.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 89-4452-0-3-271 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 32 42 42 42
Investments in US securities:
1106 Receivables, net.............. 1 1 1 1
1206 Non-Federal assets: Receivables,
net............................. 27 23 23 23
Other Federal assets:

1802 Inventories and related
properties.................... 3 3 3 3
1803 Property, plant and equipment,
net........................... 181 176 176 176
1901 Other assets.................... 1 1 1 1
------------ -------------- ------------ -------------
1999 Total assets.................... 245 246 246 246
LIABILITIES:
Federal liabilities:

2101 Accounts payable................ 2 2 2 2
2105 Other........................... 1 1 1
Non-Federal liabilities:

2201 Accounts payable................ 2 2 2 2
2207 Other........................... 2 1 1 1
------------ -------------- ------------ -------------
2999 Total liabilities............... 6 6 6 6
NET POSITION:
3300 Cumulative results of operations.. -24 -30 -30 -30
3600 Other............................. 263 270 270 270
------------ -------------- ------------ -------------
3999 Total net position.............. 239 240 240 240
------------ -------------- ------------ -------------
4999 Total liabilities and net position 245 246 246 246
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 10 10 10
11.5 Other personnel compensation.... 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 11 11 11
12.1 Civilian personnel benefits....... 2 2 2
21.0 Travel and transportation of
persons......................... 1 1 1
23.1 Rental payments to GSA............ 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.2 Other services.................... 30 63 41
25.3 Purchases of goods and services
from Government accounts........ 3 3
26.0 Supplies and materials............ 2 2 2
31.0 Equipment......................... 1 4 5
32.0 Land and structures............... 5 5 6
43.0 Interest and dividends............ 38 32 31
--------- --------- ----------
99.9 Total obligations............... 95 125 101
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-4452-0-3-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
2001 Total compensable workyears: Full-
time equivalent employment...... 152 161 161
---------------------------------------------------------------------------

DEPARTMENTAL ADMINISTRATION

Departmental Administration

For salaries and expenses of the Department of Energy necessary for
departmental administration in carrying out the purposes of the
Department of Energy Organization Act (42 U.S.C. 7101 et seq.),
including the hire of passenger motor vehicles and official reception
and representation expenses (not to exceed $35,000), [$218,747,000]
$245,788,000, to remain available until expended: Provided, That moneys
received by the Department for miscellaneous revenues [estimated to
total $131,330,000] in fiscal year [1998] 1999 may be retained and
[used] shall become available on October 1, 1999, to remain available
until expended for operating expenses within this account, [and may
remain available until expended,] as authorized by section 201 of Public
Law 95-238, notwithstanding the provisions of 31 U.S.C. 3302[: Provided
further, That the sum herein appropriated shall be reduced by the amount
of miscellaneous revenues

[[Page 390]]

received during fiscal year 1998 so as to result in a final fiscal year
1998 appropriation from the General Fund estimated at not more than
$87,417,000]. (Energy and Water Development Appropriations Act, 1998.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0228-0-1-276 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............
--------- --------- ----------
03.00 Offsetting collections............ 137
07.99 Total balance, end of year........ 137
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Office of Policy.................. 18 19 19
00.04 Chief Financial Officer........... 21 22 22
00.08 Congressional and
Intergovernmental Affairs....... 8 8 5
00.11 General Counsel................... 19 20 21
00.12 Office of the Secretary........... 2 5 4
00.13 Board of Contract Appeals......... 1 1 1
00.18 Cost of work for others........... 27 35 44
00.20 Human Resources and Administration 109 106 111
00.21 Field management.................. 7 8 8
00.22 Economic impact and diversity..... 5 7 7
00.23 Office of Public Affairs.......... 4
--------- --------- ----------
10.00 Total obligations............... 217 231 246
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 13 13
22.00 New budget authority (gross)...... 215 218 246
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 230 231 246
23.95 New obligations................... -217 -231 -246
24.40 Unobligated balance available, end
of year: Uninvested............. 13
----------------------------------------------------------------------------

New budget authority (gross), detail:
Current:

40.00 Appropriation................... 130 87 246
Permanent:

Spending authority from
offsetting collections:
68.00 Offsetting collections (cash). 85 131 137
68.45 Portion not available for
obligation (limitation on
obligations)................ -137
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)................... 85 131
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 215 218 246
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 88 52 65
73.10 New obligations................... 217 231 246
73.20 Total outlays (gross)............. -234 -218 -241
73.31 Obligated balance transferred to
other accounts.................. -18
73.45 Adjustments in unexpired accounts. -2
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 52 65 70
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 74 72 203
86.93 Outlays from current balances..... 75 38 15
86.97 Outlays from new permanent
authority....................... 85 108
86.98 Outlays from permanent balances... 23
--------- --------- ----------
87.00 Total outlays (gross)........... 234 218 241
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -56 -95 -90
88.40 Non-Federal sources........... -29 -36 -47
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -85 -131 -137
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 130 87 109
90.00 Outlays........................... 149 87 104
---------------------------------------------------------------------------

Departmental Administration.--This account funds a wide array of
policy development and analysis activities, institutional and public
liaison functions, and other program support requirements necessary to
ensure effective operation and management. Specific activities provided
for are:

Office of Policy and International Affairs.--This organization is
the principal adviser to the Secretary for formulating and recommending
national energy policy, for conducting environmental and economic impact
analyses, for Departmental planning strategies and outyear program
funding requirements, for conducting integrated policy analysis, for
conducting a systemic evaluation of DOE programs to ensure that each
contributes the maximum toward national energy goals and objectives, for
managing the performance management program, for the formulation of
international energy policy, analyses and assessments of the current
world energy situation, and for international cooperation in energy
matters, for promoting energy security, and for advocating international
trade investment opportunities for U.S. energy companies.

Human Resources and Administration.--This office provides
institutional support services and performs and supplies administration
services to headquarters organizations and to the Department as a whole.
Areas of responsibility include: organization and management systems;
personnel management; automated data processing management and
acquisition; telecommunications management; procurement; and assistance
management and oversight.

Administrative services related to rent and building operations,
printing and graphics, copying, postage, supplies, tele- phones,
Automated Office Support Services charges, payroll processing and
contract closeouts, will be performed in the Department's
Intragovernmental Working Capital Fund (WCF). Funding for the WCF will
be justified in the program's budgets and requested in affected
appropriations.

Chief Financial Officer.--This office provides centralized direction
and oversight of financial activities including Departmental budgeting,
accounting, financial policy, compliance, and financial management. This
office also provides oversight at the Department of government-wide
efforts to improve financial management as mandated by recent
legislation, for example, Government Performance and Results Act and
Government Management Reform Act, through such means as the audited
financial statements.

Congressional and Intergovernmental Affairs.--This office is
responsible for coordinating, directing, and promoting the Secretary's,
Department's, and Administration's policies, legislative initiatives and
budget requests with the Congress, State, territorial, Tribal and local
government officials, and other Federal agencies. The office is also
responsible for managing and overseeing the Department's liaison with
Members of Congress, the White House and other levels of government and
stakeholders which includes consumer liaison and public interest groups.

Office of Public Affairs.--This office is responsible for directing
and managing the Secretary's, Department's, and Administration's
policies and initiatives with the public, news media and other
stakeholders on energy issues. The office also serves as the chief
spokesperson in addition to managing and overseeing all public affairs
efforts, which includes public information, press and media services,
the Departmental newsletter DOE This Month, speech writing, special
projects, editorial services, and publication of special information
materials to include review of proposed publications and audiovisuals.

Field Management.--This office is responsible for the managerial
oversight of the Department's eight Operations Offices

[[Page 391]]

and two Field Offices. The office serves as the corporate integrator for
strengthening stewardship of the Department's facilities,
infrastructure, and major projects establishing consistent approaches
and practical business management solutions that cut across the
Department's programs and operations. The office provides specialized
technical support to the Department in the following areas: project
management, independent project costs assessments, utility intervention
and negotiation, and real estate planning, maintenance, and disposal. In
addition, Field Management is responsible for the program direction
budget which supports the four Multi-Purpose Operations Offices;
Chicago, Idaho, Oak Ridge and Oakland.

General Counsel.--This office is responsible for providing legal
services to all energy activities except for those functions belonging
exclusively to the Federal Energy Regulatory Commission, which is served
by its own General Counsel. Its responsibilities entail the provision of
legal opinion, advice and services to administrative and program
offices, and the conduct of both administrative and judicial litigation,
as well as legal advice and support for enforcement activities. Further,
the General Counsel appears before State and Federal agencies in defense
of national energy policies and activities. The office is responsible
for the coordination and clearance of proposed legislation affecting
energy activities and testimony before Congress. The General Counsel is
also responsible for ensuring consistency and legal sufficiency of all
energy regulations; administering and monitoring standards of conduct
requirements; and conducting the Patents program.

Office of the Secretary.--Directs and supervises the staff and
provides policy guidance to line and staff organizations in the
accomplishment of agency objectives.

Board of Contract Appeals.--Adjudicates disputes arising out of the
Department's contracts and financial assistance programs and provides
for neutral services and facilities alternative dispute resolution.

Economic Impact and Diversity.--This office is responsible for:
advising the Secretary on the effects of the Department's policies,
regulations and actions on minorities and minority business enterprises;
conducting research to determine energy consumption and use patterns of
minorities; and providing technical assistance to minority educational
institutions and minority business enterprises to enable them to
participate more fully in Departmental activities. The office is also
responsible for initiatives on historically black colleges and
universities for the Department; administering a Departmental small and
disadvantaged business program; serves as the Department's enforcer to
ensure that the civil rights of employees are protected and complaints
are processed within applicable regulatory timeframes; implements the
Department's environmental justice strategy; and responsible for the
Office of Employee Concerns which manages the whistle blower reform
initiative.

Cost of Work for Others.--This activity covers the cost of work
performed under orders placed with the Department by non-DOE entities
which are precluded by law from making advance payments and certain
revenue programs. Reimbursement for these costs is made through deposits
of offsetting collections to this account.

Corporate Management Information System.--A FY 1998 initiative
supporting National Performance Review objectives and the requirements
of this Department's Strategic Alignment Initiative by maximizing our
investment in streamlined information and financial systems through the
cooperative development of an automated, technology-based systems
approach. Funding in the amount of $8.0 million is provided for a
Corporate Human Resources Information System to support activities such
as: position management, processing personnel actions, and applicant/
employee tracking of awards and benefits through a user-friendly,
automated information technology system. In addition, some funds will be
used to update and replace a number of independent, antiquated financial
systems with compatible, user-friendly business systems that will
provide real-time management and financial data on a DOE complex-wide
basis. Finally, some funds will support activities for a Department-wide
information technology and system planning effort that is needed to
conform with the principles of the new Information Technology Management
Reform Act.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 87 86 88
11.3 Other than full-time permanent.. 5 4 4
11.5 Other personnel compensation.... 2 2 2
--------- --------- ----------
11.9 Total personnel compensation.. 94 92 94
12.1 Civilian personnel benefits....... 16 16 16
13.0 Benefits for former personnel..... 3 3 3
21.0 Travel and transportation of
persons......................... 2 3 3
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.1 Advisory and assistance services.. 8 8 9
25.2 Other services.................... 24 25 27
25.3 Purchases of goods and services
from Government accounts........ 63 77 87
25.6 Medical care...................... 2 2 2
26.0 Supplies and materials............ 3 3 3
31.0 Equipment......................... 1 1 1
--------- --------- ----------
99.9 Total obligations............... 217 231 246
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0228-0-1-276 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 1,361 1,303 1,304
---------------------------------------------------------------------------

Office of the Inspector General

For necessary expenses of the Office of the Inspector General in
carrying out the provisions of the Inspector General Act of 1978, as
amended, [$27,500,000] $29,500,000, to remain available until expended.
(Energy and Water Development Appropriations Act, 1998.)

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total obligations................. 29 28 30
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 5
22.00 New budget authority (gross)...... 24 28 30
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 29 28 30
23.95 New obligations................... -29 -28 -30
----------------------------------------------------------------------------

New budget authority (gross), detail:
40.00 Appropriation..................... 24 28 30
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 4 4 5
73.10 New obligations................... 29 28 30
73.20 Total outlays (gross)............. -29 -27 -30
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 4 5 5
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 22 24 26
86.93 Outlays from current balances..... 7 3 4
--------- --------- ----------
87.00 Total outlays (gross)........... 29 27 30
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 24 28 30

[[Page 392]]

90.00 Outlays........................... 29 27 30
---------------------------------------------------------------------------

This appropriation provides agencywide audit, inspection, and
investigative functions to identify and correct management and
administrative deficiencies which create conditions for existing or
potential instances of fraud, waste, and mismanagement. The audit
function provides financial and performance audits of programs and
operations. Financial audits include financial statement and financial
related audits. Performance audits include economy and efficiency and
program results audits. The inspections function provides independent
inspections and analyses of the effectiveness, efficiency, and economy
of programs and operations and conducts inquiries to resolve contractor-
employee whistleblower complaints of reprisal. The investigative
function provides for the detection and investigation of improper and
illegal activities involving programs, personnel, and operations.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 18 17 18
11.5 Other personnel compensation.... 1
--------- --------- ----------
11.9 Total personnel compensation.. 19 17 18
12.1 Civilian personnel benefits....... 5 5 5
21.0 Travel and transportation of
persons......................... 1 1 1
23.1 Rental payments to GSA............ 1 1 1
25.1 Advisory and assistance services.. 1 1 2
25.2 Other services.................... 2 2 2
--------- --------- ----------
99.0 Subtotal, direct obligations.. 29 27 29
99.5 Below reporting threshold......... 1 1
--------- --------- ----------
99.9 Total obligations............... 29 28 30
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0236-0-1-276 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 291 273 266
---------------------------------------------------------------------------

Special Foreign Currency Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0205-0-1-271 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

Working Capital Fund

Program and Financing (in millions of dollars)

Obligations by program activity:
09.00 Reimbursable program.............. 89 80 81
--------- --------- ----------
10.00 Total obligations............... 89 80 81
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 3
22.00 New budget authority (gross)...... 92 77 81
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 92 80 81
23.95 New obligations................... -89 -80 -81
24.40 Unobligated balance available, end
of year: Uninvested............. 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 92 77 81
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 19 19
73.10 New obligations................... 89 80 81
73.20 Total outlays (gross)............. -71 -80 -81
73.32 Obligated balance transferred from
other accounts.................. 1
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 19 19 19
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 71 74 78
86.98 Outlays from permanent balances... 6 3
--------- --------- ----------
87.00 Total outlays (gross)........... 71 80 81
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.45 Offsetting collections (cash)
from: Offsetting governmental
collections................... -92 -77 -81
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -21 3
---------------------------------------------------------------------------

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 89-4563-0-4-276 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 92 77 81
0102 Expense........................... -89 -80 -81
------------ -------------- ------------ -------------
0109 Net income or loss (-)............ 3 -3
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 89-4563-0-4-276 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 22 19 19
1802 Other Federal assets: Inventories
and related properties.......... 2 2 2
------------ -------------- ------------ -------------
1999 Total assets.................... 24 21 21
LIABILITIES:
Federal liabilities:

2101 Accounts payable................ 19 19 19
2105 Other........................... 3
------------ -------------- ------------ -------------
2999 Total liabilities............... 22 19 19
NET POSITION:
3600 Fund Equity....................... 2 2 2
------------ -------------- ------------ -------------
3999 Total net position.............. 2 2 2
------------ -------------- ------------ -------------
4999 Total liabilities and net position 24 21 21
-----------------------------------------------------------------------------------------------

The Department's working capital fund, established in FY 1997,
provides common administrative services such as building space,
information and telecommunications services, supplies, printing, and
copying. Establishment of the working capital fund has helped the
Department reduce waste and improve efficiency, since funding for the
goods and services is requested by the program office consumers who
purchase what they need through the working capital fund. In FY 1998
contract audit services were removed from the fund while payroll
processing was added.

[[Page 393]]

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-4563-0-4-276 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
23.1 Rental payments to GSA............ 41 41 41
23.3 Communications, utilities, and
miscellaneous charges........... 12 12 12
24.0 Printing and reproduction......... 6 6 6
25.1 Advisory and assistance services.. 12 2 2
25.2 Other services.................... 13 14 15
25.4 Operation and maintenance of
facilities...................... 1 1 1
25.7 Operation and maintenance of
equipment....................... 2 1 1
26.0 Supplies and materials............ 2 3 3
--------- --------- ----------
99.9 Total obligations............... 89 80 81
---------------------------------------------------------------------------

GENERAL FUND RECEIPT ACCOUNTS

(in millions of dollars)

----------------------------------------------------------------------------
1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
89-089400 Fees and Recoveries,
Federal Energy Regulatory
Commissions, Energy................. 46 21
89-223000 Oil and gas sale proceeds
at NPRs............................. 516 175 7
89-223100 Privatization of Elk Hills. 2,415 728
89-223200 Proceeds from sale of
excess DOE assets................... 26 15 15
89-223300 Proceeds from uranium sales 40 43 36
89-224200 Sale and transmission of
electric energy, Alaska............. 9 6
89-224500 Sale and transmission of
electric energy, Falcon Dam......... 3 3 3
89-224700 Sale and transmission of
electric energy, Southwestern Power
Administration...................... 102 95 93
89-224800 Sale and transmission of
electric energy, Southeastern Power
Administration...................... 154 145 170
89-224900 Sale of power and other
utilities, not otherwise classified. 93 43 43
89-264700 Proceeds from the sale of
Power Marketing Administrations:
APA, SEPA, SWPA, WAPA............... 85
89-288900 Repayments on miscellaneous
recoverable costs, not otherwise
classified.......................... 64 47 12
--------- --------- ----------
General Fund Offsetting receipts from
the public............................. 1,053 3,093 1,107
---------------------------------------------------------------------------

GENERAL PROVISIONS

[Priority Placement, Job Placement, Retraining, and Counseling Programs
for United States Department of Energy Employees Affected By A
Reduction in Force]
[Sec. 301. (a) None of the funds appropriated by this Act or any
prior appropriations Act may be used to award a management and operating
contract unless such contract is awarded using competitive procedures or
the Secretary of Energy grants, on a case-by-case basis, a waiver to
allow for such a deviation. The Secretary may not delegate the authority
to grant such a waiver.
(b) At least 60 days before a contract award, amendment, or
modification for which the Secretary intends to grant such a waiver, the
Secretary shall submit to the Subcommittees on Energy and Water
Development of the Committees on Appropriations of the House of
Representatives and the Senate a report notifying the subcommittees of
the waiver and setting forth the reasons for the waiver.]
[Sec. 302. (a) None of the funds appropriated by this Act or any
prior appropriations Act may be used to award, amend, or modify a
contract in a manner that deviates from the Federal Acquisition
Regulation, unless the Secretary of Energy grants, on a case-by-case
basis, a waiver to allow for such a deviation. The Secretary may not
delegate the authority to grant such a waiver.
(b) At least 60 days before a contract award, amendment, or
modification for which the Secretary intends to grant such a waiver, the
Secretary shall submit to the Subcommittees on Energy and Water
Development of the Committees on Appropriations of the House of
Representatives and the Senate a report notifying the subcommittees of
the waiver and setting forth the reasons for the waiver.]
Sec. [303] 301. None of the funds appropriated by this Act or any
prior appropriations Act may be used to--
(1) develop or implement a workforce restructuring plan that
covers employees of the Department of Energy; or
(2) provide enhanced severance payments or other benefits for
employees of the Department of Energy; under section 3161 of the
National Defense Authorization Act for Fiscal Year 1993 (Public Law
102-484; 106 Stat. 2644; 42 U.S.C. 7274h).
[Sec. 304. None of the funds appropriated by this Act or any prior
appropriations Act may be used to augment the $61,159,000 made available
for obligation by this Act for severance payments and other benefits and
community assistance grants under section 3161 of the National Defense
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat.
2644; 42 U.S.C. 7274h).]
[Sec. 305. None of the funds appropriated by this Act or any prior
appropriations Act may be used to prepare or initiate Requests For
Proposals (RFPs) for a program if the program has not been funded by
Congress.]

[(transfers of unexpended balances)]

[Sec. 306. The unexpended balances of prior appropriations provided
for activities in this Act may be transferred to appropriation accounts
for such activities established pursuant to this title. Balances so
transferred may be merged with funds in the applicable established
accounts and thereafter may be accounted for as one fund for the same
time period as originally enacted.]

TITLE V--GENERAL PROVISIONS

Sec. 501. None of the funds appropriated by this Act may be used in
any way, directly or indirectly, to influence congressional action on
any legislation or appropriation matters pending before Congress, other
than to communicate to Members of Congress as described in section 1913
of title 18, United States Code.
Sec. 502. (a) Purchase of American-Made Equipment and Products.--It
is the sense of the Congress that, to the greatest extent practicable,
all equipment and products purchased with funds made available in this
Act should be American-made.
(b) Notice Requirement.--In providing financial assistance to, or
entering into any contract with, any entity using funds made available
in this Act, the head of each Federal agency, to the greatest extent
practicable, shall provide to such entity a notice describing the
statement made in subsection (a) by the Congress.
(c) Prohibition of Contracts With Persons Falsely Labeling Products
as Made in America.--If it has been finally determined by a court or
Federal agency that any person intentionally affixed a label bearing a
``Made in America'' inscription, or any inscription with the same
meaning, to any product sold in or shipped to the United States that is
not made in the United States, the person shall be ineligible to receive
any contract or subcontract made with funds made available in this Act,
pursuant to the debarment, suspension, and ineligibility procedures
described in sections 9.400 through 9.409 of title 48, Code of Federal
Regulations.
Sec. 503. None of the funds made available in this Act may be
provided by contract or by grant (including a grant of funds to be
available for student aid) to any institution of higher education, or
subelement thereof, that is currently ineligible for contracts and
grants pursuant to section 514 of the Departments of Labor, Health and
Human Services, and Education, and Related Agencies Appropriations Act,
1997 (as contained in section 101(e) of division A of Public Law 104-
208; 110 Stat. 3009-270).
Sec. 504. None of the funds made available in this Act may be
obligated or expended to enter into or renew a contract with a
contractor that is subject to the reporting requirement set forth in
subsection (d) of section 4212 of title 38, United States Code, but has
not submitted the most recent report required by such subsection.
[Sec. 505. None of the funds made available in this Act to pay the
salary of any officer or employee of the Department of the Interior may
be used for the Animas-La Plata Project, in Colorado and New Mexico,
except for: (1) activities required to comply with the applicable
provisions of current law; and (2) continuation of activities pursuant
to the Colorado Ute Indian Water Rights Settlement Act of 1988 (Public
Law 100-585).]
[Sec. 506. Section 1621 of title XVI of the Reclamation Wastewater
and Groundwater Act, Public Law 104-266, is amended by--
(1) striking ``study'' in the section title and in subsection
(a), and inserting ``project'' into the title and in subsection (a);
(2) inserting in subsection (a) ``planning, design, and
construction of the'' following ``to participate in the''; and

[[Page 394]]

(3) inserting in subsection (a) ``and nonpotable surface
water'' following ``impaired ground water''.]
[Sec. 507. Section 1208(a)(2) of the Yavapai-Prescott Indian Treaty
Settlement Act of 1994 (Public Law 103-434) is amended by striking
``$4,000,000 for construction'' and inserting ``$13,000,000, at 1997
prices, for construction plus or minus such amounts as may be justified
by reason of ordinary fluctuations of applicable cost indexes''.]
[Sec. 508. (a) The State of West Virginia shall receive credit
towards its required contribution under Contract No. DACW59-C-0071 for
the cost of recreational facilities to be constructed by a joint venture
of the State in cooperation with private interests for recreation
development at Stonewall Jackson Lake, West Virginia, except that the
State shall receive no credit for costs associated with golf course
development and the amount of the credit may not exceed the amount owed
by the State under the Contract.
(b) The Corps of Engineers shall revise both the 1977 recreation
cost-sharing agreement and the Park and Recreation Lease dated October
2, 1995 to remove the requirement that such recreation facilities are to
be owned by the Government at the time of their completion as contained
in Article 2-06 of the cost-sharing agreement and Article 36 of the
lease.
(c) Nothing in this section shall reduce the amount of funds owed
the United States Government pursuant to the 1977 recreation cost-
sharing agreement.]
[Sec. 509. Amounts to be transferred to the Department of Energy by
the United States Enrichment Corporation (USEC) pursuant to this section
shall be retained and used for the specific purpose of development and
demonstration of AVLIS technology for uranium enrichment: Provided,
That, notwithstanding section 1605 of the Atomic Energy Act of 1954, as
amended (42 U.S.C. 2297e-4), USEC shall transfer to the Department such
sums as are necessary in fiscal year 1998 for AVLIS demonstration and
development activities to be derived only from one or more of the
following sources: savings from adjustments in the level of inventories;
savings from reductions in capital and operating costs; savings from
reductions in power costs including savings from increased use of off-
peak power; or savings from adjustments in the amount of purchases:
Provided further, That the savings from such reductions and adjustments
in the amounts paid by USEC in fiscal year 1998 shall be sufficient to
fund the aforementioned AVLIS demonstration and development activities
such that the net spending authority and resulting outlays for these
activities shall not exceed $0 in fiscal year 1998 and thereafter:
Provided further, That, prior to transferring funds to the Department
for AVLIS activities pursuant to this section, the Chief Financial
Officer of USEC shall submit to the Committees on Appropriations of the
House of Representatives and Senate an itemized listing of the amounts
of the reductions made pursuant to this section to fund the proposed
transfer: Provided further, That, by November 1, 1998, the Chief
Financial Officer of USEC shall submit to the Committees on
Appropriations of the House of Representatives and Senate an itemized
listing of the amounts of the reductions made pursuant to this section
for fiscal year 1998: Provided further, That the provisions in this
section related to the transfer to and use by the Department of funds
for AVLIS demonstration and development activities shall expire as of
the privatization date for USEC, as defined in section 3102 of the USEC
Privatization Act (42 U.S.C. 2297h), and the total amount obligated by
the Department pursuant to this section for AVLIS demonstration and
development activities shall not exceed $60,000,000.]
Sec. [510] 505. (a) None of the funds appropriated or otherwise made
available by this Act may be used to determine the final point of
discharge for the interceptor drain for the San Luis Unit until
development by the Secretary of the Interior and the State of California
of a plan, which shall conform to the water quality standards of the
State of California as approved by the Administrator of the
Environmental Protection Agency, to minimize any detrimental effect of
the San Luis drainage waters.
(b) The costs of the Kesterson Reservoir Cleanup Program and the
costs of the San Joaquin Valley Drainage Program shall be classified by
the Secretary of the Interior as reimbursable or nonreimbursable and
collected until fully repaid pursuant to the ``Cleanup Program--
Alternative Repayment Plan'' and the ``SJVDP--Alternative Repayment
Plan'' described in the report entitled ``Repayment Report, Kesterson
Reservoir Cleanup Program and San Joaquin Valley Drainage Program,
February 1995'', prepared by the Department of the Interior, Bureau of
Reclamation. Any future obligations of funds by the United States
relating to, or providing for, drainage service or drainage studies for
the San Luis Unit shall be fully reimbursable by San Luis Unit
beneficiaries of such service or studies pursuant to Federal Reclamation
law.
[Sec. 511. Maintenance of Security at the Gaseous Diffusion
Plants.--Section 3107 of the USEC Privatization Act (42 U.S.C. 2297h-5)
is amended by adding at the end the following:
``(h) Maintenance of Security.--
``(1) In general.--With respect to the Paducah Gaseous
Diffusion Plant, Kentucky, and the Portsmouth Gaseous Diffusion
Plant, Ohio, the guidelines relating to the authority of the
Department of Energy's contractors (including any Federal agency, or
private entity operating a gaseous diffusion plant under a contract
or lease with the Department of Energy) and any subcontractor (at
any tier) to carry firearms and make arrests in providing security
at Federal installations, issued under section 161k. of the Atomic
Energy Act of 1954 (42 U.S.C. 2201k.) shall require, at a minimum,
the presence of an adequate number of security guards carrying
sidearms at all times to ensure maintenance of security at the
gaseous diffusion plants (whether a gaseous diffusion plant is
operated directly by a Federal agency or by a private entity under a
contract or lease with a Federal agency).''.]
[Sec. 512. None of the funds made available in this or any other Act
may be used to restart the High Flux Beam Reactor.] (Energy and Water
Development Appropriations Act, 1998.)