    [Economic Outlook, Highlights from FY 1994 to FY 2001, FY 2002 Baseline Projections]
    [III. Major Functions of the Federal Government]
    [4.  General Science, Space, and Technology]
    [From the U.S. Government Printing Office, www.gpo.gov]

    [[Page 61]]

                   4.  GENERAL SCIENCE, SPACE, AND TECHNOLOGY

      ----------------------------------------------------------------------

                   Table 4-1.  Federal Resources in Support of General Science, Space, and Technology
                                              (Dollar amounts in millions)
    ----------------------------------------------------------------------------------------------------------------
                                                                                                            Percent
                                    Function 250                                     1993        2001       Change:
                                                                                    Actual     Estimate    1993-2001
    ----------------------------------------------------------------------------------------------------------------
    Spending:
      Discretionary budget authority............................................     17,214      20,830         21%
    Tax expenditures............................................................      3,300       7,700        133%
    ----------------------------------------------------------------------------------------------------------------

      ----------------------------------------------------------------------
      Investments in scientific discovery and technological development both
    public and private have driven economic growth and improvements in the
    quality of life in America for as long as our Nation has existed. (See
    Table 4-2.) In the last fifty years, developments in science and
    technology have generated at least half of the Nation's productivity
    growth, creating millions of high-skill, high-wage jobs. Federal
    Government support for science and technology has helped put Americans
    on the Moon, harnessed the atom, tracked weather patterns and earthquake
    faults, and deciphered the chemistry of life.
      ----------------------------------------------------------------------

                                         Table 4-2.  Selected Research Increases
                                     (Budget authority, dollar amounts in millions)
    ----------------------------------------------------------------------------------------------------------------
                                                                                                            Percent
                                                                                     1993        2001       Change:
                                                                                    Actual      Enacted    1993-2001
    ----------------------------------------------------------------------------------------------------------------
    National Institutes of Health...............................................     10,335      20,370         97%
    National Science Foundation.................................................      2,750       4,426         61%
    Total 21st Century Research Fund............................................     29,681      44,908         51%
    ----------------------------------------------------------------------------------------------------------------
    Note: See Table 4-4 for details.

      ----------------------------------------------------------------------
      In 1993, President Clinton took office committed to expanding
    investment in civilian research and development (R&D), because
    technological advances are key to progress and economic growth. The
    President's economic strategy relied upon the critical element of
    investing in people and proposed targeted investments to help the Nation
    compete in the global economy and improve our quality of life. The
    Clinton-Gore Administration's investments in R&D were guided by several
    fundamental principles, including the following: a) sustain and nurture
    America's world-leading science and technology enterprise, through
    pursuit of specific agency missions and through stewardship of critical
    research fields and scientific facilities; b) strengthen and expand
    access to high-quality science, mathematics, and engineering education,
    and contribute to preparing the next generation of scientists and
    engineers; c) focus on activities that require a Federal presence to
    attain national goals, including national security, environmental
    quality, economic growth and prosperity, and human health and well
    being; or, d) promote inter

    [[Page 62]]

    national cooperation in science and technology that would strengthen the
    advance of science and achievement of national priorities.
      In his first year, the President proposed and secured passage of a
    research tax credit to spur additional basic and applied research as
    well as significant investments to fund R&D in a range of fields. In
    keeping with the emphasis on civilian research and development, the
    Administration increased the share for civilian R&D investments, from 42
    percent in 1993 to 50 percent in 2001. Discretionary funding in the
    general science, space, and technology function increased by 21 percent
    from $17.2 billion in 1993 to $20.8 billion in 2001. (A restructuring of
    budget accounts in 1998 and 1999 added $1.5 billion in 2001 for this
    function for Department of Energy (DOE) R&D activities. These amounts
    were included in the energy function--see Chapter 5, ``Energy''--in
    1993.) During this same period, total Federal funding for R&D across all
    budget functions increased by 24 percent, from $72.5 billion to $90.2
    billion, while funding for defense R&D received a more modest increase
    of seven percent, from $42.2 billion to $45.0 billion (see Table 4-3).
    Defense R&D currently accounts for nearly 90 percent of federally-funded
    development, which decreased by one percent since 1993, from $42.8
    billion in 1993 to $42.5 billion in 2001.
      ----------------------------------------------------------------------

                                  Table 4-3.  Research and Development Investments \1\
                                     (Budget authority, dollar amounts in millions)
    ----------------------------------------------------------------------------------------------------------------
                                                                                                   Percent   Percent
                                                                      1993      2000      2001     Change:   Change:
                                                                     Actual    Actual    Enacted   1993 to   2000 to
                                                                                                    2001      2001
    ----------------------------------------------------------------------------------------------------------------
    Funding by R&D Type:
      Basic Research..............................................    13,362    19,323    21,861       64%       13%
      Applied Research............................................    13,608    18,642    21,182       56%       14%
      Development \2\.............................................    42,795    40,399    42,518       -1%        5%
      Equipment...................................................       \3\       983     1,094        NA       11%
      Facilities..................................................     2,727     3,728     3,552       70%       -5%
                                                                   -------------------------------------------------
        Total.....................................................    72,492    83,075    90,207       24%        9%

    Funding by R&D Share:
      Civilian....................................................    30,329    40,471    45,181       49%       12%
      Defense.....................................................    42,163    42,604    45,026        7%        6%
                                                                   -------------------------------------------------
        Total.....................................................    72,492    83,075    90,207       24%        9%
                                                                   -------------------------------------------------
      Civilian (percent)..........................................       42%       49%       50%

    R&D Support to Universities...................................    11,674    14,377    16,365       40%       14%

    Science and Technology Initiatives:
      National Nanotechnology Initiative..........................        NA       267       420        NA       57%
      Information Technology R&D..................................       728     1,543     2,006      176%       30%
      Climate Change Technology Initiative........................        NA     1,096     1,239        NA       13%
      Partnership for a New Generation of Vehicles................        NA       224       236        NA        5%
      U.S. Global Change Research Program.........................     1,326     1,692     1,700       28%         *
    ----------------------------------------------------------------------------------------------------------------
    * = 0.5 percent or less.

    NA = Not applicable.

    \1\ Includes funding from multiple functions.

    \2\ Defense R&D funding is the source of nearly 90 percent of Federal development funding.

    \3\ Equipment and facilities data were not collected separately in 1993.

      ----------------------------------------------------------------------
      ----------------------------------------------------------------------

                                       Table 4-4.  21st Century Research Fund \1\
                                     (Budget authority, dollar amounts in millions)
    ----------------------------------------------------------------------------------------------------------------
                                                                                                   Percent   Percent
                                                                      1993      2000      2001     Change:   Change:
                                                                     Actual    Actual    Enacted   1993 to   2000 to
                                                                                                    2001      2001
    ----------------------------------------------------------------------------------------------------------------
    Health and Human Services:
      National Institutes of Health...............................    10,335    17,813    20,370       97%       14%

    National Science Foundation...................................     2,750     3,897     4,426       61%       14%

    National Aeronautics and Space Administration (NASA):
      Space Science...............................................     1,770     2,193     2,508
      Earth Science...............................................       996     1,443     1,498
      Aerospace Technology........................................       884       985     1,107
      Life and Microgravity Sciences..............................       408       275       317
                                                                   -------------------------------
        NASA Total................................................     4,058     4,896     5,430       34%       11%

    Department of Energy (DOE):
      Science Programs............................................     3,066     2,788     3,186
      Solar and Renewable R&D.....................................       249       315       375
      Energy Conservation R&D.....................................       346       577       626
                                                                   -------------------------------
        DOE Total.................................................     3,661     3,680     4,187       14%       14%

    Department of Defense (DOD):
      Basic Research..............................................     1,314     1,161     1,318
      Applied Research............................................     3,549     3,410     3,690
                                                                   -------------------------------
        DOD Total.................................................     4,863     4,571     5,008        3%       10%

    Department of Agriculture (USDA):
      CSREES Research and Education...............................       433       487       543
      Economic Research Service...................................        59        53        55
      Agricultural Research Service...............................       661       830       916
      Forest Service Research.....................................       183       218       246
                                                                   -------------------------------
        USDA Total................................................     1,336     1,588     1,760       32%       11%

    Department of Commerce (DOC):
      Oceanic and Atmospheric Research............................       202       298       358
      National Institutes of Standards and Technology \2\.........       364       534       494
                                                                   -------------------------------
        DOC Total.................................................       566       832       852       51%        2%

    Department of Transportation (DOT):
      Highway Research............................................       221       490       437
      Aviation Research...........................................       230       156       187
                                                                   -------------------------------
        DOT Total.................................................       451       646       624       38%       -3%

    Department of Interior: U.S. Geological Survey................       750       813       882       18%        8%

    Environmental Protection Agency (EPA):
      Office of Research and Development..........................       517       561       573
      Climate Change Technology programs..........................        NA       103        96
                                                                   -------------------------------
        EPA Total.................................................       517       664       669       29%        1%

    Department of Education: Research programs....................       162       319       349      115%        9%

    Department of Veterans Affairs: Medical Research..............       232       321       351       51%        9%
                                                                   -------------------------------------------------
    21st Century Research Fund....................................    29,681    40,040    44,908       51%       12%
    ----------------------------------------------------------------------------------------------------------------
    NA = Not applicable.

    \1\ Includes funding from multiple functions.

    \2\ Does not include Manufacturing Extension Partnership.

      ----------------------------------------------------------------------
      In 1999, the President established the 21st Century Research Fund for
    America (see Table 4-4), relying upon a coordinated and balanced
    investment strategy to provide resources for basic research at the
    National Institutes of Health (NIH), the National Science Foundation
    (NSF), and DOE, and a wide range of applied research activities in areas
    such as the environment, agriculture, energy, computers, communications,
    and transportation. In addition to allocating resources in a balanced
    manner across several budget

    [[Page 64]]

    functions, the Research Fund serves as an effective tool to ensure that
    complementary disciplines are funded consistent with a balanced
    portfolio of research activity. The Research Fund also focuses on basic
    research and strengthening university-based research. During this
    Administration, funding for programs in the 21st Century Research Fund
    has grown 52 percent from $29.7 billion in 1993 to $44.9 billion in
    2001. During this same period, funding support for universities grew to
    nearly $16.4 billion in 2001, a 40-percent increase since 1993.
       This Administration also promoted high-priority multiagency science
    and technology initiatives in strategic areas important to the future of
    the Nation. These efforts include investments in information technology
    research, nanotechnology, global change, climate change technologies,
    and the next-generation of fuel-efficient, environmentally-smart
    vehicles. These priority areas hold great promise for breakthroughs that
    are revolutionary, that drive the economy and that likely will change
    the way we think and live.
      Within the general science, space, and technology function, the
    Federal Government supports areas of cutting-edge science and
    technology, through the National Aeronautics and Space Administration
    (NASA), NSF, and 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 have applications that improve our lives. Each of
    these agencies fund the construction and operation of major scientific
    facilities on Earth or in space for multiple users. These agencies also
    contribute to the Nation's cadre of skilled scientists and engineers. A
    description of the accomplishments during the Clinton-Gore
    Administration for NASA, NSF, and DOE follows.

    National Aeronautics and Space Administration

      NASA is 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. NASA pursues this vision through
    investments in five enterprises (Space Science, Earth Science,
    Biological and Physical Research, Aero-Space Technology, and Human
    Exploration and Development of Space) and missions to carry out these
    activities.

      Space Science: Space Science programs are designed to enhance our
    understanding of the possible existence of life beyond Earth, the
    fundamental rules that governed the creation and evolution of our
    universe and its galaxies, stars, planets and life, and how changes in
    the Sun can affect Earth. Highlights of Space Science mission
    accomplishments during this Administration include:
      Using images from NASA's Mars Global Surveyor spacecraft,
              scientists discovered new geological features suggesting the
              existence of large sources of liquid water at or near the
              surface of Mars. This discovery, combined with microscopic
              evidence of possible bacterial fossils in Martian meteorites,
              revolutionized scientific views on the potential for life on
              Mars.
      Using images and other data from NASA's Galileo mission to
              Jupiter, scientists discovered evidence which strongly
              suggests that Jupiter's moon, Europa, harbors a subterranean
              ocean beneath its icy crust, further extending possible abodes
              for life elsewhere in our solar system.
      Astronomers funded by NASA and NSF discovered the first
              scientific evidence that planets exist in other star systems.
              Astronomers have identified approximately 50 stars that have
              evidence of planetary companions to date.
      On July 4, 1997, NASA successfully landed the Mars Pathfinder
              spacecraft and its Sojourner rover on Mars. The Pathfinder
              mission garnered worldwide interest, with almost one billion
              ``hits'' on Pathfinder's web site. The cost of the Pathfinder
              mission was one-sixth that of one of NASA's Viking missions
              that landed on Mars in 1976.
      NASA's Hubble Space Telescope took images of the most distant
              parts of our universe yet seen. Calculations of the distance
              to some faraway galaxies based on Hubble data show that our
              universe is expanding faster than previously understood and

    [[Page 65]]

              have led to new theories about an unidentified energy source
              that is driving the expansion of our universe.

      Earth Science: Earth Science programs 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. These observations provide data for refining scientific
    models of the Earth system that inform global climate change decision-
    making. Highlights of Earth Science accomplishments during this
    Administration include:
      NASA moved its Earth Observing System series of remote sensing
              satellites from planning to operation by launching Terra, the
              first satellite in the series, in 2000. Using data from Terra,
              scientists will continue to study the Earth's climate,
              atmosphere, oceans, land cover, and ecosystems. NASA
              scientists have already discovered that the growing season in
              Canada and Siberia increased by about one week during the
              1980's, perhaps evidence of climate warming due to human
              influence.
      Researchers continuously tracked the waxing and waning of the
              El Nino phenomenon from space for the first time using NASA's
              Ocean Topography Experiment mission. Scientists funded by NASA
              and NOAA uncovered the mechanics of El Nino and will be better
              able to predict how future El Ninos influence rainfall levels
              throughout the world.
      The Tropical Rainfall Measurement Mission, a partnership
              between NASA and its sister agency in Japan, made the first
              accurate measurements of rainfall over global tropical
              regions. By combining these measurements with wind data from
              NASA's QuikSCAT mission, scientists improved models for
              predicting when and where a hurricane will hit land.
      NASA's Total Ozone Mapping Spectrometer tracked the annual
              shrinkage and growth of the areas of depleted ozone over the
              Earth's poles. Ozone is a key chemical in the Earth's
              atmosphere that blocks dangerous ultraviolet radiation from
              the Sun. Researchers believe certain man-made chemicals create
              these ``ozone holes''.

      Biological and Physical Research: Biological and Physical Research
    programs conduct experiments in physics, chemistry and biology to
    understand how the unique conditions of the space environment affect
    living organisms and fundamental science phenomena. Using this
    information, scientists hope to reduce the risks of long-duration human
    spaceflight and gain new insights into biology, materials, and processes
    that can improve life on Earth. Highlights of Biological and Physical
    Research accomplishments during this Administration follow.
      A NASA researcher used a novel new state of matter called a
              Bose-Einstein condensate to create an ``atom laser'' that
              generates an intense beam of coherent atoms. The step from
              ordinary atomic beams to atom lasers is analogous to the step
              from the light bulb to the optical laser. The atom laser might
              replace conventional atomic beams and provide greater
              precision in atomic clocks and for tests of the fundamental
              laws of physics. Ultimately, it might lead to high-resolution
              atom deposition on surfaces for the fabrication of novel
              materials and nanostructures.
      NASA researchers developed the rotating bioreactor to enable
              the growth and study of tissue cultures in three dimensions,
              both in space and on the ground. The bioreactor enables tissue
              research in an environment that mimics the human body with
              much more fidelity than previous research methods. This
              technology has allowed a NASA/NIH team to conduct the first
              laboratory study of HIV inside human lymphoid tissue, allowed
              research on three-dimensional prostate and ovarian cancer
              tumors outside the body, and is enabling tissue engineering
              applications for cartilage, heart, liver, kidney, and other
              tissues for research and commercial development.
      NASA-funded scientists achieved new understanding of the
              phenomenon of neural plasticity by studying the rapid and
              apparently reversible dynamic changes in the brain as it
              adjusts to weightlessness in space. This work helped to
              reverse a long-held belief that cells in the adult central
              nervous system could not grow and adapt.

    [[Page 66]]

              Continued research to identify the molecular mechanisms
              responsible for neural plasticity is expected to improve
              astronaut health and safety, and NASA is working with NIH to
              improve medical care for balance and postural disorders on
              Earth.

      Aero-Space Technology: Aero-Space Technology programs work with the
    private sector to develop and test new technologies and experimental
    vehicles that promise to reduce the cost of access to space, improve
    space transportation capabilities, and support revolutionary new
    generations of spacecraft. Highlights of Aero-Space Technology
    accomplishments during this Administration include:
      NASA and industry developed and test-fired two new,
              revolutionary rocket engines, the XRS-2000 linear aerospike
              engine and the M-1 Fastrac engine. The engines may power
              future, low-cost launch vehicles.
      NASA and industry completed assembly and conducted ground and
              captive carry flight tests of the X-34 experimental test
              vehicle. The X-34 is aimed at demonstrating low-cost, fast-
              turnaround launch operations.

      Human Exploration and Development of Space: Human Exploration and
    Development of Space programs provide human access to space on the Space
    Shuttle, develop and operate research platforms like the International
    Space Station, use human skills and expertise in space to conduct
    science and test new technologies, and support the development of space
    including new space applications. Highlights of Human Exploration and
    Development of Space accomplishments during this Administration include:
      NASA moved the International Space Station from a design plan
              with no hardware built to development, launch, and operation.
              In 1998, the first element of the International Space Station
              reached orbit, and in 2000 it received its first three-person
              crew, beginning permanent human occupancy. Most of the U.S.
              flight elements needed to finish assembly are now at the
              launch site.
      Through the Space Flight Operations Contract, NASA
              successfully consolidated 21 Space Shuttle contracts under a
              single prime contractor, reducing the Space Shuttle budget
              from $3.7 billion in 1992 to $3.0 billion in 2000, and safely
              flew 48 flights.
      NASA implemented Space Shuttle upgrades including the Super
              Lightweight Tank, the Alternate Turbo-Pump, and the Large-
              Throat Main Combustion Chamber to improve Shuttle safety by a
              factor of six and increase performance to the Space Station by
              more than two-thirds.

    National Science Foundation

      As the only agency of the Federal Government exclusively devoted to
    supporting basic scientific and engineering research and education, NSF
    has emerged as a leader and steward of the Nation's science and
    engineering enterprise. While NSF represents nearly four percent of
    Federal research and development spending, it supports more than half of
    the non-medical basic research conducted at academic institutions. NSF
    categorizes its investments in three strategic areas: people, ideas, and
    tools. Investments in these areas work in concert to support the
    agency's mission to maintain U.S. leadership in all aspects of science
    and engineering research and education. During this Administration, NSF
    funding increased by 61 percent from $2.7 billion in 1993 to $4.4
    billion in 2001.

      People: NSF is committed to facilitating the creation of a diverse,
    internationally competitive and globally-engaged work force of
    scientists, engineers and well-prepared citizens. Although only about 20
    percent of NSF's annual budget is categorized as an investment in the
    ``people'' category, in actuality, every dollar NSF spends is an
    investment in people. Significant highlights of NSF funding for people
    during this Administration include:
      36 Nobel Prizes awarded since 1993 recognize work supported by
              NSF (13 in Physics, nine in Chemistry, eight in Economics, and
              six in Physiology or Medicine). Six of the Nobel Laureates
              selected since 1993 began their graduate science careers as
              NSF Graduate Research Fellows.
      Bill Nye the Science Guy, an NSF-supported television series,
              received several Emmy awards including Outstanding Chil

    [[Page 67]]

              dren's Series. This informal education show promotes increased
              comprehension and application of science facts and concepts
              among its viewers.
      The Louis Stokes Alliances for Minority Participation program
              significantly increased the number of baccalaureate degrees
              earned by students from underrepresented groups. For example,
              the Florida/Georgia alliance has tripled the production of
              science and engineering baccalaureate degrees earned by
              underrepresented minorities in those States from 416 per year
              to 1,380 per year.

      Ideas: Investments in ideas support cutting edge research that yields
    new and important discoveries and promotes the development of new
    knowledge and applications. More than half of NSF's annual budget is
    categorized as an investment in ideas. This includes support for
    individuals and small groups devoted both to disciplinary and cross-
    disciplinary research. Also included is funding for centers that address
    scientific and engineering questions and research problems that require
    long-term, coordinated efforts of many researchers. Significant
    highlights of NSF funding for ideas during this Administration follow.
      Scientists supported by NSF completed the first DNA genome
              sequence of the model plant, Arabidopsis, which will provide
              new information about chromosome structure, evolution,
              intracellular signaling, and disease resistance in plants.
              Among early findings is that this flowering plant has closely
              related versions of many human disease genes. That discovery
              is already offering clues about why certain human diseases
              produce the symptoms they do. It suggests that plants may
              eventually be useful not only as a source of novel medicines,
              but also as screening tools for testing the potential
              usefulness of experimental drugs.
      Clinical trials that have significantly improved detection of
              early stage cervical cancer were developed after an NSF-funded
              researcher demonstrated that fluorescence spectroscopy could
              be used to detect pre-cancerous cells.
      NSF-funded scientists uncovered the structural basis that
              explains a virus' ability to force host cells to manufacture
              the virus' own protein. This is important for understanding
              retroviruses, which are responsible for causing many cancers
              in vertebrates.
      NSF-funded scientists have made important contributions to our
              understanding of global climate change, including
              demonstrating that 1997, 1995, and 1990 were the warmest years
              since 1400 A.D. They also have shown that the 1990s were the
              warmest decade in the last 1000 years and that human-induced
              increases in greenhouse gases appear to be the dominant factor
              in the warming seen during the 20th Century.

      Tools: Nearly 25 percent of NSF's annual budget is categorized as an
    investment in state-of-the-art tools for research and education, such as
    instrumentation and equipment, multi-user facilities, digital libraries,
    research resources, accelerators, telescopes, research vessels and
    aircraft and earthquake simulators. In addition, resources support large
    surveys and databases as well as computation and computing
    infrastructures for all fields of science, engineering, and education.
    Significant highlights of NSF funding for tools during this
    Administration include:
      The NSF Supercomputer Centers Program, and its Partnerships
              for Advanced Computational Infrastructure successor, have led
              the way in adding computational modeling to theory and
              experiment as means for developing scientific understanding.
              These centers have changed the way scientific phenomena are
              analyzed, modeled, and visualized.
      Two recently completed Gemini Telescopes will be used to help
              answer questions about how stars and planets form, the
              structure and evolution of the Milky Way and other galaxies,
              and the age and evolution of the universe. Images are among
              the sharpest ever obtained by a ground-based telescope,
              roughly the equivalent of resolving the separation between a
              set of auto headlights from 2,000 miles.

    [[Page 68]]

      The Laser Interferometer Gravitational-Wave Observatory
              project began as a collaboration between physicists and
              engineers to test the dynamical features of Einstein's theory
              of gravitation and to study the properties of intense
              gravitational fields from their radiation. Scientists
              eventually may be able to identify objects in deep space that
              cannot be ``seen'' from energy given off in the form of light,
              X-rays or other electromagnetic radiation.

    Department of Energy

      DOE's Office of Science is the single largest supporter of basic
    research in the physical sciences, averaging 40 percent of all Federal
    funds in this area over the past decade. The Office supports research at
    both universities and DOE's national laboratories across such varied
    disciplines as physics, chemistry, materials science, geology,
    environmental sciences, biology, applied mathematics, and computer
    science. Brief highlights of the Office of Science discoveries during
    this Administration follow.
      DOE, which began the Human Genome Project, is now finishing
              the human genetic map along with its two major partners, NIH
              and Britain's Wellcome Trust. DOE researchers completed a
              draft sequence of three of the 23 pairs of chromosomes in the
              human genome. The Human Genome Project has driven significant
              public and private developments in sequencing technology. As a
              result, the cost of sequencing a single base pair has fallen
              by more than a factor of 1,000. It is now practical to
              sequence the entire genome of a large number of organisms. To
              date, DOE has completed sequencing the genomes of 17 microbes
              with the genomes of another 28 microbes in various stages of
              completion.
      Researchers using the Lawrence Berkeley Laboratory's 88-inch
              cyclotron have extended the periodic table by discovering two
              new superheavy elements. International teams of researchers
              working at DOE's Fermilab have nearly completed the Standard
              Model of particle physics with the discovery of the top quark
              and detection of the tau neutrino. These accomplishments bring
              the total discoveries by DOE and its predecessor agency to 18
              of the periodic table's 27 man-made elements and 11 of the
              Standard Model's 12 constituents of matter.
      DOE researchers were the first to use positron emission
              tomography (PET) to create functional images of the human
              brain at work. This has opened up exciting new opportunities
              in brain research. DOE has a long history of achievements in
              advanced imaging technologies, including the development of
              PET.
      Three Nobel Prizes in chemistry and two Nobel Prizes in
              physics awarded since 1993 recognize work supported by DOE's
              Office of Science or its predecessor agencies. Examples of the
              prize-winning work include an explanation of how cells store
              and release energy in the form of adenosine triphosphate, the
              discovery of fullerenes, and the development of neutron
              scattering techniques. Fullerenes, cage-like forms of pure
              carbon, are the basis of an entirely new area of chemistry and
              are playing important roles in nanoscience. Neutron scattering
              is an important tool for studying a wide range of economically
              and scientifically important materials.
      DOE science is improving our understanding of the role of
              ecosystem processes in the global carbon cycle. New
              measurements from the DOE Ameriflux network have demonstrated
              how the exchange of carbon dioxide between vegetation and the
              atmosphere varies among seasons, and by region and ecosystem.
              They have also shown that some ecosystems previously thought
              to be carbon ``sources'' are actually storing carbon dioxide
              in the biosphere.
      The Office of Science also constructs and operates the Federal
    Government's most extensive system of R&D facilities. These include
    particle and nuclear physics accelerators, synchrotron light sources,
    neutron scattering facilities, supercomputers, and the high-speed
    networks that connect scientists and their data. Each year, DOE's
    facilities are used by more than 15,000 researchers from universities,
    other Government agencies and private industry. Highlights of the Office
    of Science's

    [[Page 69]]

    facility-related accomplishments during this Administration follow.
      Since 1993, the Office of Science has completed, on time and
              within budget, construction of the Advanced Photon Source, the
              Advanced Light Source, the Main Injector at Fermilab, the B-
              Factory at Stanford, the Relativistic Heavy Ion Collider, the
              Continuous Electron Beam Accelerator Facility, and the
              Environmental Molecular Sciences Laboratory. The National
              Spherical Torus Experiment, a fusion experimental facility,
              was completed below cost and ahead of schedule. Construction
              of these facilities represents an investment of more than $2.6
              billion.
      This Administration's Scientific User Facilities Initiatives
              in 1996 and 2001 have helped to dramatically increase the
              effectiveness and productivity of DOE's facilities. As an
              example, DOE's light sources now serve more than twice the
              total number of users and four times as many users from the
              life sciences as they did in 1993. Structural biologists are
              now producing better than seven times as many protein
              structures in a year using synchrotron light sources as they
              were in 1993.

      The Office of Science installed the first supercomputer
              available to the civilian research community to exceed the one
              teraflop peak performance and supported the development of the
              first civilian scientific application to achieve over one
              teraflop actual performance.

    Tax Incentives

      Along with direct spending on R&D, the Federal Government has used tax
    preferences to encourage private investment in research. Current law
    provides a 20-percent research tax credit for research and
    experimentation expenditures above a certain base amount. The Tax Relief
    Extension Act of 1999 extended the credit from July 1, 1999, thorough
    June 30, 2004. In addition, the 1999 Act increased by one percentage
    point the credit rate applicable under the alternative incremental
    research credit, and expanded the definition of qualified research to
    include research undertaken in Puerto Rico and possessions of the United
    States. A permanent tax provision also lets companies deduct, up front,
    the costs of certain kinds of research and experimentation, rather than
    capitalize these costs. During this Administration, tax credits and
    other preferences for R&D increased 133 percent from $3.3 billion in
    1993 to $7.7 billion in 2001.