[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.