    [Budget of the United States Government]
    [V. Investing in the Common Good: Program Performance in Federal Functions]
    [13. General Science, Space, and Technology]
    [From the U.S. Government Publishing Office, www.gpo.gov]

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                   13.  GENERAL SCIENCE, SPACE, AND TECHNOLOGY

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                   Table 13-1.  Federal Resources in Support of General Science, Space, and Technology
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimate
                   Function 250                   1999   -----------------------------------------------------------
                                                 Actual     2000      2001      2002      2003      2004      2005
    ----------------------------------------------------------------------------------------------------------------
    Spending:
      Discretionary Budget Authority..........    18,793    19,192    20,761    21,179    21,471    22,094    22,495
      Mandatory Outlays:
        Existing law..........................        42       102        66        34        34        34        34
    Tax Expenditures:
      Existing law............................     3,595     2,875     5,245     5,675     5,060     4,850     3,915
    ----------------------------------------------------------------------------------------------------------------

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      Science and technology are principal agents of change and progress,
    with over half of the Nation's economic productivity growth in the last
    50 years attributable to technological innovation and the science that
    supported it. Appropriately enough, the private sector makes many
    investments in technology development. The Federal Government, however,
    also plays a role--particularly when risks are too great or the
    potential return for companies is too long-term.
      Within this function, the Federal Government supports areas of
    cutting-edge science, through the National Aeronautics and Space
    Administration (NASA), the National Science Foundation (NSF), and the
    Department of Energy (DOE). The activities of these agencies contribute
    to greater understanding of the world in which we live, ranging from the
    edges of the universe to the smallest imaginable particles, and to new
    knowledge that may or may not have immediate applications to improving
    our lives. Because the results of basic research are unpredictable,
    developing performance goals for this area presents unique challenges.
      Each of these agencies funds high-quality research and contributes to
    the Nation's cadre of skilled scientists and engineers. To continue this
    tradition, and as a general goal for activities under this function, at
    least 80 percent of the research projects will be reviewed by
    appropriate peers and selected through a merit-based competitive
    process. In 1999, 94 percent of the project funds awarded through grants
    by NSF, 82 percent by NASA, and 91 percent by DOE were reviewed by
    appropriate peers and selected through a merit-based competitive
    process. Because these percentages are based on data that do not reflect
    the entire research activity at all agencies, the Administration will
    need to reform the definitions in next year's report.
      Another important Federal role is to construct and operate major
    scientific facilities and capital assets for multiple users. These
    include telescopes, satellites, oceanographic ships, and particle
    accelerators. Many of today's fast-paced advances in medicine and other
    fields rely on these facilities. As general goals, agencies will keep
    the development and upgrade of these facilities on schedule and within
    budget, not to exceed 110 percent of estimates. In 1999, NASA
    development and upgrades were within 113 percent of cost estimates and
    108 percent of schedule estimates, and those within DOE were within 100
    percent of cost and schedule estimates. In operating the facilities,
    agencies will keep the operating time lost due to unscheduled

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    downtime to less than 10 percent of the total scheduled possible
    operating time, on average. In 1999, NASA developed a baseline for loss
    of scheduled operating time due to scheduled downtime of 5.6 percent to
    enable them to report next year on unscheduled downtime. DOE user
    facilities kept unscheduled downtime to nine percent. NSF is in the
    process of developing a database, and will report in next year's budget.
      One of the specific areas in which the Federal Government has invested
    is the Internet, which has changed the lives of millions of Americans.
    Previous Federal investments helped to establish the Internet, and
    current investments are making the Internet faster and available to more
    Americans. Since 1998, the Federal Government has invested in the Next
    Generation Internet Initiative, which focuses on a variety of ways to
    improve the operation of the network. For example, it is focusing on how
    to make the Internet operate at speeds 100 to 1,000 times faster than
    the current Internet to allow a typical user to view routinely highly-
    detailed pictures and to explore complex data bases. In 1999, the
    testbed connected over 100 sites to a network that will deliver speeds
    100 times faster than the 1998 Internet, and over 10 sites to a second
    network that will deliver speeds 1,000 times faster. This initiative is
    also examining ways to ensure that information transferred over the
    Internet is used only by the intended user for its intended purpose, and
    to make the Internet as reliable as local telephone service while
    greatly reducing the effort required to administer and manage the
    network.
      The budget proposes $20.76 billion to conduct activities in support of
    general science, space, and technology. The Government also stimulates
    private investment in these activities through over $5 billion a year in
    tax credits and other preferences for research and development (R&D).

    National Aeronautics and Space Administration

      The budget proposes $13.1 billion for NASA activities in this
    function. NASA serves as the lead Federal agency for research and
    development in civil space activities, working to expand frontiers in
    air and space to serve America and improve the quality of life on Earth.
    NASA pursues this vision through balanced investment in four
    enterprises--Space Science, Earth Science, Space Transportation
    Technology, Human Exploration and Development of Space--and mission
    support to carry out these activities.
      NASA's achievements in 1999 included direct and independent
    confirmation of the existence of extrasolar planets; production of a
    global, three-dimensional map of Mars; successful launch and operation
    of the Chandra X-ray Observatory, which is now returning unprecedented
    images of never-before-seen objects beyond our galaxy; improvement in
    measuring global rainfall from an uncertainty of 50 percent to 25
    percent; and, the first successful docking of the Space Shuttle to the
    International Space Station.
      Space Science programs, for which the budget proposes $2.4 billion,
    are designed to enhance our understanding of how the universe was
    created, what fundamental rules govern its evolution, how stars and
    planets evolve and die, how space phenomena affect Earth, and the
    possible existence of life beyond Earth. In 1999, NASA developed and
    launched seven spacecraft with an average 3.8 percent cost overrun,
    although two Mars missions failed to return data. The NASA Advisory
    Council indicated that eight of the eight NASA performance plan
    objectives for Space Science have been successfully met. In 2001,
       NASA will successfully launch at least four of its six
              planned spacecraft--the Mars Surveyor--01 Orbiter, the Genesis
              mission, the Galaxy Evolution Explorer, the Microwave
              Anisotropy Probe, Cooperative Astrophysics and Technology
              Satellite, and Gravity Probe B--within 10 percent of their
              schedules and budgets. For those spacecraft already
              successfully launched, NASA Space Science will meet expected
              operations performance for at least 80 percent of its
              operating missions;
       NASA's Advisory Council will rate the Space Science
              performance plan objectives as being successfully met.
              Examples of objectives include: investigate the composition,
              evolution and resources of Mars, the

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              Moon, and small solar system bodies such as asteroids and
              comets; identify planets around other stars; and observe the
              evolution of galaxies and the intergalactic medium; and,
       NASA will continue and expand the integration of education
              and enhanced public understanding within its research and
              flight mission programs. Space Science funded education and
              outreach activities will be in planning or implementation in
              at least 34 States.
      Earth Science programs, for which the budget proposes $1.4 billion,
    focus on the effects of natural and human-induced changes on the global
    environment through long-term, space-based observation of Earth's land,
    oceans, and atmospheric processes. In 1999, NASA launched two
    spacecraft, Landsat-7, and the Quick Scatterometer. Users have routinely
    received earth science data products within five days of receipt or
    production of the requested data product. The NASA Advisory Council
    indicated that 29 of 35 performance targets were successfully met. In
    2001,
       NASA will successfully launch and operate at least two of
              three planned spacecraft--Aqua, IceSat, and Triana--within 10
              percent of their schedules and budgets;
       NASA will increase by 20 percent the volume of climate data
              it archives over the 2000 target of 368 terabytes, increase
              the number of products delivered from its archives by 10
              percent over 2000, and make the data available to users within
              five days; and,
       NASA's Advisory Council will rate all near-term Earth Science
              objectives as being met or on schedule. Examples of objectives
              include: observe and document land cover and land use change
              and impacts on sustained resource productivity; and understand
              the causes and impacts of long-term climate variations on
              global and regional scales.
      Aero-Space Technology programs, for which the budget proposes $616
    million, work with the private sector to develop and test experimental
    launch vehicles that reduce the cost of access to space. In 1999, the X-
    33 program began testing of the liquid hydrogen tank and the aerospike
    engine resulting in a decision to redesign the tank. The X-34 program
    initiated hotfire testing of the Fastrac engine and completed delivery
    roll out and systems verification review of the first flight vehicle. In
    2001,
       the X-34 program will complete assembly of the third
              experimental test vehicle; and,
       the X-37 program will commence vehicle assembly.
      Human Exploration and Development of Space programs, for which the
    budget proposes $5.5 billion, focus on the use of human skills and
    expertise in space. In 1999, the space shuttle achieved a 60 percent
    increase in predicted reliability over the 1995 levels, observed an
    average of 4.75 anomalies per flight, achieved an on-time launch rate of
    67 percent, and achieved a 12-month flight preparation cycle. The
    International Space Station program delivered the first two elements of
    the orbiting laboratory to space, and conducted successful operations
    throughout the year. In 2001,
       NASA will successfully complete no less than 85 percent of
              planned operations schedules and milestones for 2001 for the
              International Space Station. For example, NASA will conduct
              permanent on-orbit operations with an estimated 8,000 crew
              hours dedicated to assembly, vehicle operations, and payload
              operations; and
       NASA will ensure that Space Shuttle safety, reliability,
              availability and cost will improve, by achieving seven or
              fewer flight anomalies per mission, successful on-time
              launches 85 percent of the time, and a 12-month manifest
              preparation time. NASA will complete the checkout launch and
              control system application for the Orbiter Processing
              Facility.

    National Science Foundation

      The budget proposes $4.5 billion in 2001 for NSF in this function.
    While NSF represents just three percent of Federal R&D spending, it
    supports nearly half of the non-medical basic research conducted at
    academic institutions, and 30 percent of Federal support for mathematics
    and science edu

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    cation. In 1999, NSF-funded scientists uncovered the structural basis
    that explains a virus' ability to force host cells to manufacture the
    virus' own proteins. This is important for understanding retroviruses,
    which are responsible for causing many cancers in vertebrates. In
    addition, the May 3, 1999, tornado outbreak in Central Oklahoma was used
    to test a regional forecast system developed at an NSF-funded center.
    The storm-scale forecast showed improved predictive ability and
    increased precision. As this forecasting capability is further
    developed, it will become a critical tool in determining which areas
    will be most severely hit by storms, allowing sufficient and timely
    warnings to be issued to persons in affected areas.
      NSF research and education investments are made in three primary
    areas:
      Ideas: Approximately one-half of NSF's resources support research
    projects performed by individuals, small groups, and centers. In 2001,
       an independent panel will judge whether research results in
              the period demonstrate sufficient progress toward achieving a
              robust and growing fundamental knowledge base; important
              discoveries; partnerships connecting discovery to innovation,
              learning and societal advancement; and research and education
              processes that are synergistically coupled; and,
       NSF will maintain the 2000 goal of having a minimum of 30
              percent of competitive research grants go to new
              investigators. In 1999, 27 percent of competitive research
              grants went to new investigators.
      Tools: NSF investments provide state-of-the art tools for research and
    education, such as instrumentation and equipment, multi-user facilities,
    accelerators, telescopes, research vessels and aircraft, and earthquake
    simulators. In addition, resources support large databases as well as
    computation and computing infrastructures for all fields of science,
    engineering, and education. Nearly a quarter of NSF's budget provides
    the tools required for cutting-edge research. In 2001,
       NSF facilities will continue to meet the function-wide goals
              to remain within cost and schedule, and to operate
              efficiently.
      People: Activities to facilitate development of a diverse and talented
    work force of scientists, engineers, and well-prepared citizens account
    for about 25 percent of NSF's budget. NSF supports formal and informal
    science, mathematics, engineering, and technology education at all
    levels, including multi-disciplinary education and training for graduate
    students. In addition, resources support projects to develop curriculum,
    enhance teacher training and professional development, and provide
    educational opportunities for students from pre-K through postdoctoral.
    In 1999, 40 NSF-sponsored projects implemented mathematics and science
    standards-based curricula in over 81 percent of participating schools,
    and provided professional development for more than 156,000 teachers.
    All participating educational systems demonstrated some level of
    improvement in student achievement in mathematics and science on a
    battery of system-selected assessment instruments. Moreover, in 1999,
    systemic initiatives and related teacher enhancement programs provided
    intensive professional development to a total of 82,400 teachers,
    exceeding the goal of 65,000. For 2001, NSF will continue to adhere to
    the following goal:
       Over 80 percent of schools participating in a systemic
              initiative program will: 1) implement a standards-based
              curriculum in science and mathematics; 2) further professional
              development of the instructional work force; and, 3) improve
              student achievement on a selected battery of tests, after
              three years of NSF support.

    Department of Energy

      The budget proposes $3.2 billion in 2001 for DOE science programs and
    supporting activities. DOE operates major scientific facilities
    including particle accelerators, magnetic plasma confinement reactors
    for fusion research, synchrotron light sources, neutron sources,
    supercomputers, and high-speed networks that researchers use in fields
    ranging from the physical and materials sciences to the biomedical and
    life sciences. These facilities are available, on a competitive basis,

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    to scientists and engineers in universities, industry and other Federal
    agencies.
      In 1999, an international team of nuclear scientists at DOE's Lawrence
    Berkeley National Laboratory added three new elements to the periodic
    table. Elements 116 and 118 are the heaviest yet created and confirm
    physicists' long-standing prediction of an ``island'' within the
    Periodic Table of the elements where heavier nuclei become increasingly
    stable. In addition, DOE-funded university researchers have developed a
    new class of organic magnets that are stable in air. For some of these
    materials, their magnetism can be switched on or off using light, a
    process found only in molecular or polymer-based magnets. The potential
    applications of these new materials are only beginning to be explored.
      The budget proposes $1.02 billion for Basic Energy Sciences (BES),
    which supports basic research in the materials, chemical and engineering
    sciences, geosciences, and plant and microbial biosciences. As part of
    its mission, BES plans, constructs, and operates major scientific user
    facilities. In 1999, DOE redesigned the Spallation Neutron Source to
    have a more defensible cost and schedule baseline. In 2001,
       DOE will meet the cost and schedule milestones for upgrade
              and construction of scientific user facilities, including the
              construction of the Spallation Neutron Source, as confirmed by
              regular external independent reviews.
      The budget proposes $182 million for Advanced Scientific Computing
    Research, which supports applied mathematics, computer science, and
    networking research and operates supercomputer, networking and related
    facilities to enable the analysis, simulation, and prediction of complex
    physical phenomena. In 1999, DOE-funded computer scientists developed a
    technique that reduces the time it takes to process a three-dimensional
    x-ray image from overnight to less than 20 minutes. This advance will
    greatly improve the productivity of the Nation's synchrotron light
    sources. By the end of 2001,
       the National Energy Research Scientific Computing Center will
              deliver 3.6 Teraflop capability to support DOE's science
              mission.
      The budget proposes $445 million for Biological and Environmental
    Research (BER), which supports basic research to identify, understand,
    and anticipate the long-term health and environmental consequences of
    energy production, development, and use. In 1999, BER-funded scientists
    determined the complete gene sequence of three microbes: the radiation-
    resistant Deinococcus radiodu-rans, the pollutant-eating Shewanella
    putrefa-ciens, and the carbon-fixing Chlorobium tepidum. In 2001,
       DOE, through its Joint Genome Institute, will meet its
              commitment to sequence three of the 24 human chromosomes as
              part of an international effort to sequence the entire human
              genome. DOE will sequence and submit to public databases at
              least 10 percent of the human genome with an accuracy of 99.9
              percent.
      The budget proposes $1.08 billion for High Energy and Nuclear Physics,
    which strives to understand the nature of matter and energy in terms of
    the most elementary particles and forces and to more completely explain
    the structure and interactions of atomic nuclei. In the third quarter of
    1999, construction of the Relativistic Heavy Ion Collider was completed
    on schedule and within budget. In 2001,
       DOE will make progress in achieving luminosity and
              operational efficiency goals for the B-factory at the Stanford
              Linear Accelerator Center, and begin Fermilab's Tevatron
              Extended Run II, which has the potential to discover a new
              class of elementary particles.
      The budget proposes $247 million for DOE's Office of Fusion Energy
    Sciences, which conducts research to advance plasma science, fusion
    science, and fusion technology. In 2001,
       DOE will deliver the first physics results from the radio-
              frequency driven Electric Tokamak.

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    Tax Incentives

      Along with direct spending on R&D, the Federal Government has sought
    to stimulate private investment in these activities with tax
    preferences. The current law provides a 20-percent tax credit for
    private research and experimentation expenditures above a certain base
    amount. The credit, which expired in 1999, was retroactively reinstated
    for five years, to 2004, in the Tax Relief Extension Act of 1999. The
    credit will cost $3.4 billion in 2001 and $14.2 billion from 2001 to
    2005.
      A permanent tax provision also lets companies deduct, up front, the
    costs of certain kinds of research and experimentation, rather than
    capitalize these costs. This tax expenditure will cost $1.9 billion in
    2001. Finally, equipment used for research benefits from relatively
    rapid cost recovery. The cost of this tax preference is calculated in
    the tax expenditure estimate for accelerated depreciation of machinery
    and equipment.