[Budget of the United States Government]
[III. Creating a Better Government]
[4. General Science, Space, and Technology]
[From the U.S. Government Publishing Office, www.gpo.gov]


 
               4.  GENERAL SCIENCE, SPACE, AND TECHNOLOGY

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               Table 4-1.  Federal Resources in Support of General Science, Space, and Technology
                                            (In millions of dollars)
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                                                                               Estimate
               Function 250                   2000   -----------------------------------------------------------
                                             Actual     2001      2002      2003      2004      2005      2006
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Spending:
  Discretionary Budget Authority..........    19,203    20,861    21,191    21,892    22,441    22,910    23,488
  Mandatory Outlays:
    Existing law..........................        36        94       126       158       150        92        53
Tax Expenditures:
  Existing law............................     3,310     7,700     8,440     7,160     6,590     4,700     3,260
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  More than half of the Nation's economic productivity growth in the 
last 50 years is attributable to technological innovation and the 
science that supported it. Appropriately, the private sector makes the 
largest investments in technology development. The Federal Government, 
however, also plays a role. Total Federal research and development would 
be at an all-time high in inflation-adjusted terms if the President's 
proposal is approved.
  Within the General Science, Space, and Technology 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 a greater understanding of 
the world in which we live, ranging from the edges of the universe to 
the smallest particles, and to new knowledge that may have immediate 
applications for 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 research and contributes to the Nation's 
cadre of skilled scientists and engineers. As a general goal for 
activities in this function, at least 80 percent of the research 
projects will be reviewed by appropriate peers and selected through a 
merit-based competitive process. 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 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; and
  in operating the facilities, agencies will keep the operating 
          time lost due to unscheduled downtime to less than 10 percent 
          of the total scheduled possible operating time, on average.
  The budget proposes $21.2 billion to conduct activities in support of 
general science, space, and technology. The Government also stimulates 
private investment in these activities through over $8.4 billion a year 
in tax credits and other preferences for research and development (R&D). 
With the 2002 Budget, the President proposes that the tax credit for 
research and experimentation be made permanent.

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National Aeronautics and Space Administration (NASA)

  The budget proposes $13.6 billion for NASA activities in this 
function. NASA serves as the lead Federal agency for R&D in civil space 
activities, working to expand frontiers in air and space to serve 
America and improve the quality of life on Earth. To carry out these 
activities, NASA pursues this vision through balanced investment in five 
enterprises: Space Science, Earth Science, Biological and Physical 
Research, Aero-Space Technology, and Human Exploration and Development 
of Space.
  NASA's achievements in 2000 included: launching Terra, the first 
mission in the Earth Observing System series of spacecraft; discovering 
potential evidence of recent liquid water flows on the surface of Mars 
from the Mars Global Surveyor spacecraft; securing the arrival of the 
Shoemaker Near Earth Asteroid Rendezvous mission at the asteroid Eros, 
the first spacecraft ever to orbit an asteroid; and continuing 
successful assembly of the International Space Station in orbit.

  Space Science: Space Science programs, for which the budget proposes 
$2.8 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 2000, NASA developed and 
launched Hubble Servicing Mission 3A, the Imager for Magnetopause-to-
Aurora Expansion mission, and contributions to the X-ray Multi-Mirror 
and Cluster-2 missions, with an average one-percent cost overrun. The 
High Energy Solar Spectroscopic Imager mission and the Thermal, 
Ionosphere, and Mesosphere Energetics and Dynamics mission did not 
launch as planned in 2000 due to spacecraft development issues and 
launch vehicle delays. The Mars Polar Lander mission was lost when it 
did not land successfully on Mars as planned in 2000. Although scheduled 
to launch in 2000, the High-Energy Transient Explorer mission was 
launched shortly after the end of the year.
  For 2000, the NASA Advisory Council, an independent panel, indicated 
that 34 of 65 performance plan objectives and 18 of 19 science 
objectives for Space Science have been successfully met. In 2002:
   NASA will successfully complete its performance goal for 
          design and development of projects to support future Space 
          Science research. These development projects represent near-
          term investments that will allow future research in pursuit of 
          the strategic plan's science objectives. Completion will be 
          demonstrated by a successful rating from the NASA Advisory 
          Council or an equivalent senior-level external review 
          committee. This rating will be based on achievement of six of 
          the eight pre-determined performance objectives, four of which 
          address launch readiness for the Space Infrared Telescope 
          Facility, the Galaxy Evolution Explorer, the Comet Nucleus 
          Tour mission, and the Hubble Space Telescope Servicing Mission 
          3B.
   NASA's annual performance goals in support of strategic plan 
          Space Science objectives will be rated as being successfully 
          met by NASA's Advisory Council or an equivalent senior-level 
          external review committee. Examples of these objectives 
          include: learn how galaxies, stars, and planets form, 
          interact, and evolve; understand the formation and evolution 
          of the Solar System and the Earth within it; and understand 
          our changing Sun and its effects throughout the Solar System. 
          Each of these performance goals calls for obtaining at least 
          80 percent of the expected scientific data from operating 
          missions that support the relevant science objective.
   NASA will continue to expand the integration of education and 
          enhanced public understanding within its Space Science 
          research and flight mission programs. Performance objectives 
          in support of this effort call for Space Science-funded 
          education and public outreach activities for every funded 
          Space Science mission, which will result in projects in at 
          least 40 States. These projects will range from elementary 
          schools to graduate students and post-graduates. In addition, 
          Space Science will ensure that Enterprise-funded projects are 
          underway in Historically Black Colleges and Universities, 
          Hispanic Serving Institutions, and Tribal Colleges.

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  Earth Science: Earth Science programs, for which the budget proposes 
$1.5 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 2000, NASA 
successfully launched five spacecraft (Terra, ACRIMSAT, the Shuttle 
Radar Topography Mission, and two National Oceanic and Atmospheric 
Administration (NOAA) weather satellites (GOES-L, NOAA-L)), and 
delivered four instruments to international spacecraft, with an average 
seven-percent cost overrun. Launches of spacecraft expected in 2001 have 
been delayed: Aqua until no earlier than July 2001, IceSAT until 
December 2001, and Triana pending shuttle availability. Users have 
routinely received earth science data products within five days of 
receipt or production of the requested data product.
  The NASA Advisory Council concluded that 43 of 47 Earth Science 
performance targets were successfully met. In 2002:
  NASA will successfully launch and operate at least two of 
          three planned spacecraft, IceSAT, Gravity Recovery and Climate 
          Experiment and the Solar Radiation and Climate Experiment 
          within 10 percent of their schedules and budgets. For those 
          spacecraft already successfully launched, NASA Earth Science 
          will obtain at least 80 percent of the expected scientific 
          data;
  NASA will increase by 50 percent the volume of climate data it 
          archives over the 2001 target of 442 terabytes, increase the 
          number of products delivered from its archives by 10 percent 
          over the 2001 target of 5.4 million products delivered, and 
          make the data available to users within five days; and,
  NASA's Advisory Council will be able to rate all near-term 
          Earth Science objectives as being met or on schedule. Examples 
          of these 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: Aero-Space Technology programs, for which the 
budget proposes $1.5 billion, work with other NASA enterprises, 
industry, and academia to develop and test technologies that reduce risk 
and improve cost performance for future spacecraft and space 
transportation systems. In 2000, NASA initiated assembly of the X-37 
flight test vehicle. The X-33 and X-34 programs did not perform flight 
tests as planned in 2000, due to technical problems encountered during 
development. Both programs have been canceled. Depending on selections, 
NASA will develop additional 2002 Aero-Space Technology goals based on 
Second Generation Reusable Launch Vehicle awards in 2001. In 2002:
  NASA will perform the rollout and begin test flights of the X-
          37 vehicle. This vehicle will serve as a platform on which to 
          test and verify advanced technologies in the area of 
          lightweight composite airframes, integrated vehicle health 
          monitoring, and thermal protection systems.
  The Space Base program will complete working prototypes of 
          over 40 micro-scaled and low-power electronic spacecraft and 
          sensor components. These components can lead to future science 
          spacecraft that are the functional equivalent or better of 
          current spacecraft but with less than one-tenth the volume and 
          mass.

  Human Exploration and Development of Space: Human Exploration and 
Development of Space (HEDS) programs, for which the budget proposes $7.3 
billion, focus on the use of human skills and expertise in space. In 
2000, the Space Shuttle flew four successful missions, including the 
Hubble Space Telescope Servicing Mission 3A that replaced failing gyros 
on the Hubble. The Shuttle Radar Topography Mission, a joint Department 
of Defense/NASA payload to study the earth, successfully mapped over 98 
percent of the available terrain. Two flights to the International Space 
Station delivered equipment and supplies to set the stage for future 
assembly missions and to prepare for the first Expedition crew. 
Improvements to the Space Shuttle system achieved an additional 10-
percent increase in predicted reliability over the 1999 levels, and 
completed the first flight of a new upgraded cockpit. Space Shuttle 
operations continued to perform well and observed an average of six 
anomalies per flight, achieved 100

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percent on-orbit mission success for primary payloads, and achieved a 
12-month flight preparation cycle. The International Space Station 
program delivered, as planned, two-thirds of the total U.S. flight 
hardware to the launch site, and also conducted successful operations 
throughout the year. However, projected cost overruns have required a 
major restructuring of the program in 2002, which should control cost 
growth, while enabling accommodation of contributions from international 
partners. In 2002:
  NASA will successfully complete a majority of planned 
          operations schedules and milestones for 2002 for the 
          International Space Station. For example, NASA plans to 
          conduct permanent on-orbit operations with crew support 
          dedicated to assembly, vehicle operations, payload operations, 
          and early research, and conduct the first Space Shuttle flight 
          to the Space Station dedicated to research; and
  NASA will ensure that Space Shuttle safety, reliability, 
          availability, and cost will improve, by achieving eight or 
          fewer flight anomalies per mission, 100 percent on-orbit 
          mission success for primary payload on-orbit operations, and a 
          12-month manifest preparation time. NASA will complete the 
          implementation of the Alternate Turboprop to improve the 
          safety of flight operations and continue safety and 
          supportability upgrades to maintain Space Shuttle 
          infrastructure.

  Biological and Physical Research: NASA's Biological and Physical 
Research programs, for which the budget proposes $380 million, focus on 
basic and applied research to support the safe and effective human 
exploration of space, as well as the use of the space environment as a 
laboratory for increasing our understanding of biological, physical, and 
chemical processes. In 2000, the Biological and Physical Research 
Enterprise was created as a separate entity from the HEDS Enterprise to 
provide a greater focus on biological and physical research. The new 
Office of Biological and Physical Research (OBPR) and its predecessor 
organization, the Office of Life and Microgravity Sciences and 
Applications, conducted significant commercial research on the May Space 
Shuttle mission to the Space Station, and inaugurated the Space Station 
research era by conducting the first long-duration experiment on the 
International Space Station. In 2002:
  OBPR will continue to build a productive scientific community 
          to utilize its space assets, expanding agency support to 
          approximately 1,000 scientific investigations (from 877 
          reported in 1999); and
  NASA will collaborate with the National Cancer Institute to 
          develop and test cutting-edge methods and instruments to 
          support molecular-level diagnostics for physiological and 
          chemical processes monitoring.

Management Reform Goals

  To fulfill the President's commitment to make Government more market-
based, NASA will pursue management reforms to promote innovation, open 
Government activities to competition, and improve the depth and quality 
of NASA's R&D expertise. These reforms, described below, will help 
reduce NASA's operational burden and focus resources on Government-
unique R&D at NASA.
  International Space Station. NASA will undertake reforms and 
          develop a plan to ensure that future Space Station costs will 
          remain within the President's 2002 Budget plan. Key elements 
          of this plan will: restore cost estimating credibility, 
          including an external review to validate cost estimates and 
          requirements and suggest additional options as needed; 
          transfer Space Station program management reporting from the 
          Johnson Space Center in Texas to NASA Headquarters until a new 
          program management plan is developed and approved; and open 
          future Station hardware and service procurements to innovation 
          and cost-saving ideas through competition, including launch 
          services and a Non-Government Organization for Space Station 
          research.
  Space Shuttle Privatization. NASA will aggressively pursue 
          Space Shuttle privatization opportunities that improve the 
          Shuttle's safety and operational efficiency. This reform will 
          include continued implementation of planned and new 
          privatization efforts through the Space Shuttle

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          prime contract and further efforts to safely and effectively 
          transfer civil service positions and responsibilities to the 
          Space Shuttle contractor.
  Space Launch Opportunities. NASA's Space Launch Initiative 
          provides commercial industry with the opportunity to meet 
          NASA's future launch needs, including human access to space, 
          with new launch vehicles that promise to dramatically reduce 
          cost and improve safety and reliability. NASA will undertake 
          management reforms within the Space Launch Initiative, 
          including: ensuring vehicle affordability and competitiveness 
          by limiting requirements to essential needs through commercial 
          services; creating requirements flexibility, where possible, 
          to accommodate innovative industry proposals; validating 
          requirements through external, independent review; 
          implementing a well-integrated risk-reduction investment 
          strategy that makes investments only after requirements and 
          vehicle options are well-understood, to ensure a viable 
          competition by the middle of the decade for initial Station 
          cargo and crew launch services; ensuring no set-aside funds 
          for non-industry vehicles like the Space Shuttle; and 
          achieving affordable, near-term successes in Next Generation 
          Launch Services and Alternative Access to the Space Station 
          and integrating these near-term activities into longer-term 
          planning.
  Critical Capabilities. U.S. academia and industry provide a 
          rich R&D resource that NASA can tap to strengthen its mission 
          capabilities. NASA will develop an integrated, long-term 
          agency plan that ensures a national capability to support 
          NASA's mission by: identifying NASA's critical capabilities 
          and, through the use of external reviews, determining which 
          capabilities must be retained by NASA and which can be 
          discontinued or led outside the agency; expanding 
          collaboration with industry, universities and other agencies, 
          and outsourcing appropriate activities to fully leverage 
          outside expertise; and pursuing civil service reforms for 
          capabilities that NASA must retain, to ensure recruitment and 
          retention of top science, engineering and management talent at 
          NASA.

National Science Foundation (NSF)

  Under the President's plan, between 2000-2002, NSF's budget will grow 
by 15 percent to $4.5 billion. This significant increase is consistent 
with the President's support for increasing the Federal investment in 
basic R&D, and funding NSF as the primary agency for supporting peer-
reviewed, competitively awarded, long-term, high-risk research conducted 
through our Nation's university systems. For 2003, the Administration 
will undertake a budgetary review to determine how best to support the 
NSF's budget in a sustained manner over time.
  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 provides 30 percent of Federal support for 
mathematics and science education.
  NSF research and education investments are made in three primary 
areas:

  People: Activities to facilitate development of a diverse and talented 
work force of scientists, engineers, and well-prepared citizens account 
for more than 20 percent of NSF's budget. In 2002, NSF will invest $1.0 
billion in this area. NSF supports formal and informal science, 
mathematics, engineering and technology education at all levels, 
including multidisciplinary education and training for graduate 
students. In addition, resources support projects to develop curriculum, 
enhance teacher professional development, and provide educational 
opportunities for students from pre-K through postdoctoral work. In 
2000, the three major systemic efforts implemented mathematics and 
science standards-based curricula in 6,348, or over 80 percent, of the 
7,630 participating schools. NSF awards provided intensive professional 
development to a total of 89,723 teachers, substantially exceeding the 
performance goal of 65,000. For 2002, NSF will begin the President's 
$200 million Math and Science Partnership initiative.
  In 2002, at least half of the States will activate 
          partnerships with institutions of higher education aimed at 
          strengthening K-12 math and science education through the 
          President's Math and Science Partnership initiative. These 
          partnerships can

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          involve local school districts and will address issues such as 
          preparation and professional development of math and science 
          teachers, implementation of high standards for math and 
          science, and address gaps in performance between majority and 
          minority and disadvantaged students.

  Ideas: Approximately one-half of NSF's resources support research 
projects performed by individuals, small groups, and centers. In 2002, 
NSF will invest $2.2 billion in this area.
  In 2002, results over the period studied will demonstrate 
          significant achievement for the majority of the following 
          indicators: important discoveries; a robust fundamental 
          knowledge base; connections between discovery and learning, 
          innovation, or societal advancement; partnerships that enable 
          the flow of ideas among academic, public or private sectors; 
          and leadership in fostering newly developing or emerging 
          areas. NSF's performance will be determined by aggregating the 
          performance indicator assessments provided by independent 
          external committees of experts.

  Tools: NSF will invest $1.0 billion in this area to provide state-of-
the-art shared 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 
will support large databases as well as computation and computing 
infrastructures for science, engineering, or education. Nearly a quarter 
of NSF's budget is targeted to providing the tools required for cutting-
edge research.
  In 2002, NSF facilities will continue to meet the function-
          wide goals to remain within cost and schedule.

Management Goals

  NSF has identified management and investment process goals to address 
the efficiency and effectiveness of administrative activities, and to 
focus on the means and strategies to achieve its outcome goals. In 2002:
  at least 85 percent of basic and applied research funds will 
          be allocated to projects that undergo merit review;
  for 70 percent of proposals, NSF will be able to inform 
          applicants within six months of receipt whether their 
          proposals have been declined or recommended for funding. In 
          2000, NSF processed 54 percent of proposals within six months; 
          and
  NSF will increase the average annualized award size for 
          research projects to $111,000, compared to a goal of $109,000 
          in 2001.

Management Reforms

  To fulfill the President's commitment to make Government more results-
oriented, NSF will undertake management reforms, focusing on performance 
and results.
  Study Reorganizing Research in Astronomy and Astrophysics: NSF 
          and NASA provide more than 90 percent of Federal funds for 
          academic astronomy research and facilities. Historically, NASA 
          has funded space-based astronomy and NSF has funded ground-
          based astronomy, as well as astronomy research proposals. 
          Several changes have evolved which suggest that now is the 
          time to assess the Federal Government's management and 
          organization of astronomical research. NSF and NASA will 
          establish a Blue Ribbon Panel to assess the organizational 
          effectiveness of Federal support of astronomical sciences and, 
          specifically, the pros and cons of transferring NSF's 
          astronomy responsibilities to NASA. The panel may also develop 
          alternative options. This assessment will be completed by 
          September 1, 2001.
  Document the Efficiency of the Research Process. NSF asserts 
          that the current size of its grants and their duration might 
          be resulting in an inefficient research process at U.S. 
          academic institutions. Researchers might be spending too much 
          time writing proposals instead of doing actual research. NSF 
          has increased grant size and duration in previous years, 
          particularly through its priority research areas; however, 
          there is little documentation that this is having a positive 
          impact on research output. With the assistance of U.S. 
          academic research institutions, NSF will develop metrics to 
          measure the

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          efficiency of the research process and determine the ``right'' 
          grant size for the various types of research the agency funds. 
          These metrics and grant size determination will be developed 
          in time for consideration of the 2003 NSF budget request.
  Enhance NSF Capability to Manage Large Facility Projects. NSF 
          has several multi-year, large facility projects awaiting 
          approval for funding. NSF will enhance its capability to 
          manage proposed projects, given the magnitude and costs of 
          future projects. NSF will develop a plan for costing, 
          approval, and oversight of major facility projects, and also 
          will enhance its capability to estimate costs and provide 
          oversight of project development and construction.
  Improve NSF's Ability to Administer and Manage its Program 
          Activities. Although NSF has had robust increases in its 
          program responsibilities and budgets in the past decade, 
          funding for administration and management has remained 
          relatively flat. NSF has been able to keep pace with the 
          increased workload by investing in information technology. 
          Both the NSF Inspector General and the NSF Management Controls 
          Committee have expressed concern about the adequacy of 
          staffing at a time when the agency is facing turnover and 
          recruitment problems and management of more complex 
          programmatic activities. They also raise concerns with systems 
          and data management. NSF will develop a five-year strategic 
          plan for the work force and information technology needs of 
          the agency in time for consideration of the 2003 Budget.

Department of Energy (DOE)

  The budget proposes $3.2 billion in 2002 for DOE science programs and 
supporting activities. DOE's Office of Science is one of the Nation's 
leading source of support for basic research in the physical sciences, 
conducting research at universities and the national laboratories. DOE 
also operates major scientific facilities including particle 
accelerators, magnetic confinement fusion reactors, 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, to scientists and engineers in 
universities, industry, and other Federal agencies.

  Basic Energy Sciences: The budget proposes $1.0 billion for Basic 
Energy Sciences (BES), which supports basic research in materials 
science, chemistry, engineering, geoscience, plant biology, and 
microbiology. As part of its mission, BES plans, constructs, and 
operates major scientific user facilities. In 2000, Los Alamos National 
Laboratory's Lujan Neutron Scattering Center delivered only 79 percent 
of scheduled operating time, missing its target of no more than 10 
percent unscheduled downtime. A recent review found the Lujan Center 
staff to be seriously over-committed. In 2002:
  DOE will meet the cost and schedule milestones for 
          construction and upgrade of scientific user facilities as 
          confirmed by regular external independent reviews. Major 
          ongoing projects include construction of the Spallation 
          Neutron Source (a powerful tool to explore materials structure 
          and properties) and an upgrade of the SPEAR3 storage ring at 
          the Stanford Synchrotron Radiation Laboratory; and
  DOE science programs will significantly increase their funding 
          for basic research on renewable sources of energy, to advance 
          cost-effective means to further diversify the Nation's energy 
          supply.

  Advanced Scientific Computing Research: The budget proposes $166 
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.
  By the end of 2002, DOE will review the Integrated Software 
          Infrastructure Centers, newly established in 2001, to ensure 
          effective coupling of these centers to scientific application 
          pilot projects and teams funded throughout the Office of 
          Science.

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  Biological and Environmental Research: The budget proposes $443 
million for Biological and Environmental Research, which supports basic 
research to identify, understand, and anticipate the long-term health 
and environmental consequences of energy production, development, and 
use. In addition to its accomplishments in genomics, DOE plays a major 
role in understanding the global carbon cycle.
  In 2002, DOE will develop and test a fully-coupled climate 
          model that integrates the atmosphere with the ocean, land, and 
          sea ice, with higher spatial resolution than is presently 
          available; and
  By the end of 2002, the DOE Joint Genome Institute DNA 
          sequencing will complete the high quality DNA sequence of 
          human chromosomes 5 and 19 and produce six million base pairs 
          of DNA sequence from model organisms to help understand the 
          human sequence.

  High Energy and Nuclear Physics: The budget proposes $1.1 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 2002, DOE will capitalize on its opportunities to discover 
          the particle that gives rise to mass, to search for physics 
          not adequately described by the Standard Model, and to confirm 
          and characterize neutrino oscillations and neutrino mass.

  Fusion Energy Sciences: The budget proposes $238 million for DOE's 
Office of Fusion Energy Sciences, which conducts research to advance 
plasma science, fusion science, and fusion technology. DOE will continue 
to reorient its fusion program to focus on developing the scientific 
understanding necessary to support fusion as a practical energy source.
  In 2002, DOE will study feedback stabilization as means to 
          control disruptive plasma oscillations in the recently 
          upgraded DIII-D fusion reactor.

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 (R&E) 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 budget proposes to make the R&E tax credit permanent. It will 
cost $9.9 billion from 2002 to 2006 (see Table S-10).
  A permanent tax provision also lets companies deduct, up front, the 
costs of certain kinds of R&E, rather than capitalize these costs. This 
tax expenditure will cost $1.7 billion in 2002. 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.