Appendix - Department of Energy

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

THE BUDGET FOR FISCAL YEAR 2004

[[Page 361]]

DEPARTMENT OF ENERGY

NATIONAL NUCLEAR SECURITY ADMINISTRATION

Federal Funds

General and special funds:

Office of the Administrator

For necessary expenses of the Office of the Administrator in the
National Nuclear Security Administration, including official reception
and representation expenses (not to exceed $12,000), $347,980,000, to
remain available until expended.

Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Office of the Administrator....... 319 338 348
--------- --------- ----------
10.00 Total new obligations........... 319 338 348
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 6
22.00 New budget authority (gross)...... 309 332 348
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.22 Unobligated balance transferred
from other accounts............. 16
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 326 338 348
23.95 Total new obligations............. -319 -338 -348
24.40 Unobligated balance carried
forward, end of year............ 6
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 309 332 348
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2 79 89
73.10 Total new obligations............. 319 338 348
73.20 Total outlays (gross)............. -320 -328 -345
73.32 Obligated balance transferred from
other accounts.................. 79
73.45 Recoveries of prior year
obligations..................... -1
74.40 Obligated balance, end of year.... 79 89 92
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 255 274 287
86.93 Outlays from discretionary
balances........................ 65 54 58
--------- --------- ----------
87.00 Total outlays (gross)........... 320 328 345
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 309 332 348
90.00 Outlays........................... 320 328 345
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 12 12 12
99.01 Outlays........................... 12 12 12
---------------------------------------------------------------------------

Office of the Administrator.--The Office of the Administrator
provides corporate planning and oversight for programs funded by the
Weapons Activities, Defense Nuclear Nonproliferation, and Naval Reactors
appropriations including the National Nuclear Security Administration
field offices. This account provides the Federal salaries and other
expenses of the Administrator's direct staff, and beginning in 2002
program direction for Weapons Activities and Defense Nuclear
Nonproliferation, and Federal employees at the field service center and
site offices. Program Direction for Naval Reactors remains within that
program's account, and program direction for the Secure Transportation
Asset remains in Weapons Activities.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 152 155 129
11.3 Other than full-time permanent.. 6 6 5
11.5 Other personnel compensation.... 4 4 3
--------- --------- ----------
11.9 Total personnel compensation.. 162 165 137
12.1 Civilian personnel benefits....... 37 38 32
13.0 Benefits for former personnel..... 2 2 3
21.0 Travel and transportation of
persons......................... 9 10 13
23.1 Rental payments to GSA............ 2 2 3
23.3 Communications, utilities, and
miscellaneous charges........... 5 6 9
25.1 Advisory and assistance services.. 40 46 60
25.2 Other services.................... 32 37 48
25.3 Other purchases of goods and
services from Government
accounts........................ 14 16 22
25.4 Operation and maintenance of
facilities...................... 6 6 9
25.5 Research and development contracts 1 1 1
25.7 Operation and maintenance of
equipment....................... 1 1 1
26.0 Supplies and materials............ 1 1 1
31.0 Equipment......................... 6 6 8
41.0 Grants, subsidies, and
contributions................... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 319 338 348
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0313-0-1-053 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 1,936 1,893 1,697
---------------------------------------------------------------------------

Naval Reactors

For Department of Energy expenses necessary for naval reactors
activities to carry out the Department of Energy Organization Act (42
U.S.C. 7101 et seq.), including the acquisition (by purchase,
condemnation, construction, or otherwise) of real property, plant, and
capital equipment, facilities, and facility expansion, and the purchase
of not to exceed one bus; $768,400,000, to remain available until
expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Naval reactors development........ 666 684 744
00.02 Program direction................. 22 24 24
--------- --------- ----------
10.00 Total new obligations........... 688 708 768
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1
22.00 New budget authority (gross)...... 688 707 768
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 689 708 768
23.95 Total new obligations............. -688 -708 -768
24.40 Unobligated balance carried
forward, end of year............ 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 688 707 768
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 206 200 204

[[Page 362]]

73.10 Total new obligations............. 688 708 768
73.20 Total outlays (gross)............. -694 -704 -758
74.40 Obligated balance, end of year.... 200 204 214
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 585 601 653
86.93 Outlays from discretionary
balances........................ 109 103 105
--------- --------- ----------
87.00 Total outlays (gross)........... 694 704 758
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 688 707 768
90.00 Outlays........................... 694 704 758
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 1 1 1
99.01 Outlays........................... 1 1 1
---------------------------------------------------------------------------

Naval Reactors.--This program performs the design, development, and
testing necessary to provide the Navy with safe, militarily effective
nuclear propulsion plants in keeping with the Nation's nuclear-powered
fleet defense requirements. During 2003, the program expects to exceed
126 million miles safely steamed by the nuclear fleet, and will continue
to support and improve operating reactors and plant components, and
carry out test activities and verification. Additionally, Naval Reactors
will continue to develop nuclear reactor plant components and systems
for the Navy's new attack submarine and next-generation aircraft
carriers, and continue to maintain the highest standards of
environmental stewardship by responsibly inactivating shut down
prototype reactor plants.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0314-0-1-053 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 15 15 17
12.1 Civilian personnel benefits....... 3 3 4
21.0 Travel and transportation of
persons......................... 1 1 1
25.1 Advisory and assistance services.. 1 1 1
25.2 Other services.................... 2 2 2
25.3 Other purchases of goods and
services from Government
accounts........................ 1 1 1
25.4 Operation and maintenance of
facilities...................... 607 625 678
31.0 Equipment......................... 29 30 32
32.0 Land and structures............... 29 30 32
--------- --------- ----------
99.9 Total new obligations........... 688 708 768
---------------------------------------------------------------------------

Personnel Summary

Weapons Activities

For Department of Energy expenses, including the purchase,
construction, and acquisition of plant and capital equipment and other
incidental expenses necessary for atomic energy defense weapons
activities in carrying out the purposes of the Department of Energy
Organization Act (42 U.S.C. 7101 et seq.), including the acquisition or
condemnation of any real property or any facility or for plant or
facility acquisition, construction, or expansion; one fixed wing
aircraft for replacement only; and the purchase of not to exceed six
passenger motor vehicles, of which four shall be for replacement only,
including not to exceed two buses; $6,378,000,000, to remain available
until expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Directed stockpile work......... 1,041 1,237 1,365
00.02 Campaigns....................... 2,092 2,084 2,395
00.03 Readiness in technical base and
facilities.................... 1,528 1,726 1,614
00.04 Facilities and infrastructure... 194 246 265
00.05 Secure transportation asset..... 145 153 182
00.06 Safeguards and security......... 525 483 557
--------- --------- ----------
01.00 Total, Direct program........... 5,525 5,929 6,378
09.01 Reimbursable program.............. 1,460 1,398 1,398
--------- --------- ----------
10.00 Total new obligations........... 6,985 7,327 7,776
----------------------------------------------------------------------------

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

21.40 Unobligated balance carried
forward, start of year [direct
program]...................... 24 62
21.40 Unobligated balance carried
forward, start of year
[reimbursable program]........ 578 577 577
22.00 New budget authority (gross)...... 7,024 7,265 7,776
22.21 Unobligated balance transferred to
other accounts.................. -2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 7,624 7,904 8,353
23.95 Total new obligations............. -6,985 -7,327 -7,776
Unobligated balance carried forward, end of
year:

24.40 Unobligated balance carried
forward, end of year [direct
program]...................... 62
24.40 Unobligated balance carried
forward, end of year
[reimbursable program]........ 577 577 577
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

Appropriation:
40.00 Appropriation................. 5,449 5,867 6,378
40.00 Appropriation [supplemental].. 131
40.35 Appropriation rescinded......... -14
40.76 Reduction pursuant to P.L. 107-
206........................... -3
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 5,562 5,867 6,378
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 1,398 1,398 1,398
68.10 Change in uncollected customer
payments from Federal sources. 63
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 1,461 1,398 1,398
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 7,024 7,265 7,776
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,518 1,710 1,973
73.10 Total new obligations............. 6,985 7,327 7,776
73.20 Total outlays (gross)............. -6,679 -7,064 -7,500
73.31 Obligated balance transferred to
other accounts.................. -62
73.32 Obligated balance transferred from
other accounts.................. 12
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -63
74.40 Obligated balance, end of year.... 1,710 1,973 2,249
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5,013 4,625 4,906
86.93 Outlays from discretionary
balances........................ 1,666 2,439 2,594
--------- --------- ----------
87.00 Total outlays (gross)........... 6,679 7,064 7,500
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -1,304 -1,304 -1,304
88.40 Non-Federal sources........... -94 -94 -94
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,398 -1,398 -1,398
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -63
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5,562 5,867 6,378
90.00 Outlays........................... 5,281 5,666 6,102
----------------------------------------------------------------------------

[[Page 363]]

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 2 2 2
99.01 Outlays........................... 2 2 2
---------------------------------------------------------------------------

Beginning in 2001, programs in the Weapons Activities appropriation
have been managed by the National Nuclear Security Administration
(NNSA).

Weapons activities provides for the maintenance and refurbishment of
nuclear weapons to sustain confidence in their safety, reliability, and
performance; expansion of scientific, engineering, and manufacturing
capabilities to enable certification of the enduring nuclear weapons
stockpile; and manufacture of nuclear weapon components under a
comprehensive test ban. Weapons activities also provide for continued
maintenance and investment in the Department's enterprise of nuclear
stewardship, including maintaining the capability to return to the
design and production of new weapons and to underground nuclear testing,
if so directed by the President. The major elements of the program
include the following:

Directed stockpile work.--Encompasses all activities that directly
support specific weapons in the stockpile. These activities include
maintenance and day-to-day care; planned refurbishment; reliability
assessments; weapon dismantlement and disposal; and research,
development, and certification technology efforts to meet future
stockpile requirements.

Campaigns.--Focuses on scientific, technical and engineering efforts
to develop and maintain critical capabilities and tools needed to
support stockpile refurbishment and continued assessment and
certification of the stockpile for the long term in the absence of
underground nuclear testing.

Readiness in technical base and facilities (RTBF).--Provides the
underlying physical infrastructure and operational readiness for the
Directed Stockpile Work and Campaign activities. These activities
include ensuring that facilities are operational, safe, secure, and
compliant with regulatory requirements, and that a defined level of
readiness is sustained at facilities funded by the Office of Defense
Programs.

Facilities and infrastructure.--Focuses on a multi-year effort to
restore physical infrastructure of the weapons complex. This activity
provides funds to accomplish deferred maintenance and utilities
replacement while improving facility management practices to preclude
further deterioration.

Secure transportation asset.--Provides for the safe, secure movement
of nuclear weapons, special nuclear material, and weapon components
between military locations and nuclear complex facilities within the
United States. Includes Program Direction funding for couriers.

Weapons Safeguards and Security.--Provides for all safeguard and
security requirements (except for personnel security investigations) at
NNSA landlord sites, specifically the Lawrence Livermore National
Laboratory, Los Alamos National Laboratory, Sandia National
Laboratories, the Nevada Test Site, Kansas City Plant, Pantex Plant, Y-
12 Plant, and the Savannah River Site Tritium Facilities.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 18 19 21
11.5 Other personnel compensation.. 7 8 8
--------- --------- ----------
11.9 Total personnel compensation 25 27 29
12.1 Civilian personnel benefits..... 16 17 19
13.0 Benefits for former personnel... 1 1 1
21.0 Travel and transportation of
persons....................... 4 4 5
23.3 Communications, utilities, and
miscellaneous charges......... 2 2 2
25.1 Advisory and assistance services 35 38 40
25.2 Other services.................. 235 252 271
25.3 Other purchases of goods and
services from Government
accounts...................... 10 11 12
25.4 Operation and maintenance of
facilities.................... 4,098 4,398 4,732
25.5 Research and development
contracts..................... 69 74 80
25.7 Operation and maintenance of
equipment..................... 1 1 1
26.0 Supplies and materials.......... 9 10 10
31.0 Equipment....................... 300 322 346
32.0 Land and structures............. 675 724 779
41.0 Grants, subsidies, and
contributions................. 44 48 51
--------- --------- ----------
99.0 Direct obligations............ 5,524 5,929 6,378
99.0 Reimbursable obligations.......... 1,460 1,398 1,398
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 6,985 7,327 7,776
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0240-0-1-053 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 334 471 539
---------------------------------------------------------------------------

Defense Nuclear Nonproliferation

For Department of Energy expenses, including the purchase,
construction and acquisition of plant and capital equipment and other
incidental expenses necessary for atomic energy defense, defense nuclear
nonproliferation activities, in carrying out the purposes of the
Department of Energy Organization Act (42 U.S.C. 7101 et seq.),
including the acquisition or condemnation of any real property or any
facility or for plant or facility acquisition, construction, or
expansion, $1,340,195,000, to remain available until expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.05 Nonproliferation and verification
research and development........ 269 204 204
00.15 Nonproliferation and international
security........................ 85 93 102
00.20 International nuclear materials
protection and cooperation...... 314 227 226
00.25 Russian transition initiatives.... 66 39 40
00.30 International nuclear safety and
cooperation..................... 56 15 14
00.35 Elimination of weapons-grade
plutonium production............ 49 50
00.50 HEU transparency implementation... 14 17 18
00.53 Accelerated materials disposition. 30
00.55 Fissile materials disposition..... 241 350 609
00.60 Russian plutonium disposition..... 19 98 47
00.65 Program direction................. 3
--------- --------- ----------
10.00 Total new obligations........... 1,067 1,092 1,340
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 224 205 141
22.00 New budget authority (gross)...... 1,060 1,028 1,340
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.21 Unobligated balance transferred to
other accounts.................. -14
22.22 Unobligated balance transferred
from other accounts............. 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,272 1,233 1,481
23.95 Total new obligations............. -1,067 -1,092 -1,340
24.40 Unobligated balance carried
forward, end of year............ 205 141 141
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

Appropriation:
40.00 Appropriation................. 750 1,028 1,340
40.00 Appropriation (Supplemental).. 281
40.76 Reduction pursuant to P.L. 107-
206........................... -1
41.00 Transferred to other accounts... -6
42.00 Transferred from other accounts. 36
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,060 1,028 1,340
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 496 754 835
73.10 Total new obligations............. 1,067 1,092 1,340

[[Page 364]]

73.20 Total outlays (gross)............. -791 -1,011 -1,203
73.31 Obligated balance transferred to
other accounts.................. -17
73.45 Recoveries of prior year
obligations..................... -1
74.40 Obligated balance, end of year.... 754 835 972
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 616 566 737
86.93 Outlays from discretionary
balances........................ 175 445 466
--------- --------- ----------
87.00 Total outlays (gross)........... 791 1,011 1,203
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,060 1,028 1,340
90.00 Outlays........................... 791 1,011 1,203
---------------------------------------------------------------------------

The mission of this program is to (1) prevent the spread of
materials, technology, and expertise relating to weapons of mass
destruction; (2) detect the proliferation of weapons of mass destruction
worldwide; (3) provide for international nuclear safety, and (4)
eliminate inventories of surplus fissile materials usable for nuclear
weapons. The program addresses the danger that hostile nations or
terrorist groups may acquire weapons of mass destruction or weapons-
usable material, dual-use production technology or weapons of mass
destruction expertise. In FY 2004, work will be done in the following
major areas.

Nonproliferation and Verification Research and Development will
conduct applied research, development, testing, and evaluation leading
to prototype demonstrations and detection systems that strengthen the
U.S. response to current and projected threats to national security and
world peace posed by the proliferation of nuclear weapons, and diversion
of special nuclear material. The program works directly with agencies
responsible for monitoring proliferation and will increase the
transition of technologies to organizations responsible for combating
terrorism.

Nonproliferation and International Security efforts will control
export of items and technology useful for weapons of mass destruction
(WMD); implement international safeguards in conjunction with the
International Atomic Energy Agency (IAEA); monitor and implement
treaties and agreements; develop and implement policy in support of
international security efforts aimed at securing high-risk nuclear
material; develop and implement transparency measures to assure that
international nonproliferation and arms control agreements are in
compliance, and that nuclear materials are secure; and explore and
implement innovative approaches to improve regional security.

International Nuclear Materials Protection and Cooperation will
continue to improve the security for nuclear material and weapons in
Russia by installing basic rapid upgrades and through comprehensive
security improvements. Reducing the potential for diversion of nuclear
warheads and materials has been a critical priority for the United
States. Since the recent terrorist attacks, Russia and the United States
have agreed to expand cooperation in this area significantly to include
increased emphasis on strategic rocket forces and radiological
dispersion devices.

Russian Transition Assistance encompasses the efforts of the
Initiatives for Proliferation Prevention (IPP) and the Nuclear Cities
Initiative (NCI) programs to reduce the risk of adverse migration of
former Soviet nuclear and other WMD expertise, and to work with the
Russians in downsizing their nuclear weapons complex.

HEU Transparency Implementation will continue to work with Russia to
provide confidence to the U.S. that the Russian highly enriched uranium
(HEU) being converted is from its military stockpile. The 1993 U.S.-
Russia HEU Purchase Agreement, which provides for Russian HEU to be down
blended to non-weapons form and used to fuel reactors here in the United
States, remains an extremely impressive nonproliferation achievement.

International Nuclear Safety and Cooperation strengthens national
security by helping to prevent nuclear incidents and accidents at
foreign nuclear facilities and, to mitigate the consequences of
accidents should they occur. In FY 2003 the program will complete the
Soviet-designed reactor safety program in Russia, which increased the
operating safety of Soviet-designed nuclear power reactors and enhanced
the resident safety culture. FY 2004 activities will address specific
high-risk situations by continued cooperation with IAEA, the G8 and
others on international nuclear safety and emergency cooperation issues.

Elimination of Weapons-Grade Plutonium Production Program enhances
nuclear nonproliferation by assisting the Russian Federation in ceasing
its production of weapons-grade plutonium production by providing
replacement power production capacity.

Accelerated Materials Disposition efforts support the 2002 G8 summit
initiatives to purchase Russian HEU above the amounts in the 1993 U.S.-
Russia HEU Purchase Agreement. These additional amounts would be used
to: (1) establish a reserve inventory of low enriched uranium for use as
fuel in nuclear power reactors in the United States; (2) fuel five
research reactors in the United States; (3) accelerate development of
low enriched research reactor fuel designs, and (4) increase the amount
of Russian HEU down-blended under the material consolidation and
conversion program.

Fissile Materials Disposition conducts activities in both the United
States and Russia to dispose of fissile materials that would pose a
threat to the United States if acquired by hostile nations or terrorist
groups. In FY 2004 it will continue transferring surplus HEU from the Y-
12 Plant to the United States Enrichment Corporation; continue
deliveries of off-specification HEU and low enriched uranium to TVA;
begin site preparation and construction of the U.S. mixed oxide (MOX)
fuel fabrication facility and purchase of long lead equipment; complete
Title II design of the Pit Disassembly and Conversion Facility; begin
construction of the Russian MOX fuel fabrication facility; fabricate
U.S. and Russian MOX fuel lead assemblies, and publish final drafts of
relevant licensing regulations.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0309-0-1-053 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 1
12.1 Civilian personnel benefits....... 1
21.0 Travel and transportation of
persons......................... 1
23.3 Communications, utilities, and
miscellaneous charges........... 1
25.1 Advisory and assistance services.. 13 13 13
25.2 Other services.................... 49 49 49
25.3 Other purchases of goods and
services from Government
accounts........................ 6 6 6
25.4 Operation and maintenance of
facilities...................... 776 850 1,098
25.5 Research and development contracts 42 42 42
31.0 Equipment......................... 22 22 22
32.0 Land and structures............... 151 106 106
41.0 Grants, subsidies, and
contributions................... 4 4 4
--------- --------- ----------
99.9 Total new obligations........... 1,067 1,092 1,340
---------------------------------------------------------------------------

Personnel Summary

[[Page 365]]

Cerro Grande Fire Activities

From unobligated balances under this heading, $75,000,000 are
cancelled.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0312-0-1-053 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 75
22.00 New budget authority (gross)...... -75
22.10 Resources available from
recoveries of prior year
obligations..................... 75
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 75
24.40 Unobligated balance carried
forward, end of year............ 75
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance rescinded... -75
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 236 157 27
73.20 Total outlays (gross)............. -78 -55 -27
73.45 Recoveries of prior year
obligations..................... -75
74.40 Obligated balance, end of year.... 157 27
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 78 55 27
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -75
90.00 Outlays........................... 78 55 27
---------------------------------------------------------------------------

Cerro Grande Fire Activities.--Emergency funding was provided in
2001 and 2000 for restoration activities at the Los Alamos National
Laboratory in New Mexico after the Cerro Grande Fire in May 2000. The
2004 budget proposes to rescind $75 million of remaining available
balances.

ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

Federal Funds

General and special funds:

Defense Environmental Restoration and Waste Management

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Site/project completion........... 975 801
00.02 Post 2006 completion.............. 3,447 2,629
00.03 Science and technology............ 245 92
00.04 Program direction................. 350 339
00.05 Safeguards and security........... 208 224
00.06 Multi-site activities............. 480
00.07 Excess facilities................. 5 1
--------- --------- ----------
10.00 Total new obligations........... 5,230 4,566
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 35 26
22.00 New budget authority (gross)...... 5,218 4,539
22.10 Resources available from
recoveries of prior year
obligations..................... 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,257 4,566
23.95 Total new obligations............. -5,230 -4,566
24.40 Unobligated balance carried
forward, end of year............ 26
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 5,237 4,539
40.35 Appropriation rescinded......... -16
40.73 Reduction pursuant to P.L. 107-
206........................... -3
41.00 Transferred to other accounts... -4
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 5,214 4,539
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 4
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 5,218 4,539
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,855 1,970 1,799
73.10 Total new obligations............. 5,230 4,566
73.20 Total outlays (gross)............. -5,091 -4,737 -1,396
73.31 Obligated balance transferred to
other accounts.................. -21
73.45 Recoveries of prior year
obligations..................... -3
74.40 Obligated balance, end of year.... 1,970 1,799 403
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3,222 3,178
86.93 Outlays from discretionary
balances........................ 1,869 1,559 1,396
--------- --------- ----------
87.00 Total outlays (gross)........... 5,091 4,737 1,396
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5,214 4,539
90.00 Outlays........................... 5,087 4,737 1,396
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 15 14
99.01 Outlays........................... 15 14
---------------------------------------------------------------------------

The 2004 budget proposes to restructure Environmental Management
programs. Activities funded in this account in 2003 and prior years are
transferred to the Defense Site Acceleration Completion and Defense
Environmental Services accounts.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 186 184
11.3 Other than full-time permanent.. 6 7
11.5 Other personnel compensation.... 4 5
--------- --------- ----------
11.9 Total personnel compensation.. 196 196
12.1 Civilian personnel benefits....... 47 49
13.0 Benefits for former personnel..... 4 3
21.0 Travel and transportation of
persons......................... 7 6
23.1 Rental payments to GSA............ 9 8
23.2 Rental payments to others......... 4 3
23.3 Communications, utilities, and
miscellaneous charges........... 4 3
25.1 Advisory and assistance services.. 114 99
25.2 Other services.................... 793 690
25.3 Other purchases of goods and
services from Government
accounts........................ 36 31
25.4 Operation and maintenance of
facilities...................... 3,053 2,641
25.5 Research and development contracts 38 33
26.0 Supplies and materials............ 4 3
31.0 Equipment......................... 28 24
32.0 Land and structures............... 785 683
41.0 Grants, subsidies, and
contributions................... 108 94
--------- --------- ----------
99.9 Total new obligations........... 5,230 4,566
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0242-0-1-053 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 2,381 2,344
---------------------------------------------------------------------------

Defense Site Acceleration Completion

For Department of Energy expenses, including the purchase,
construction, and acquisition of plant and capital equipment and other
expenses necessary for atomic energy defense site acceleration comple

[[Page 366]]

tion activities in carrying out the purposes of the Department of Energy
Organization Act (42 U.S.C. 7101 et seq.), including the acquisition or
condemnation of any real property or any facility or for plant or
facility acquisition, construction, or expansion; $5,814,635,000, to
remain available until expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 2006 Accelerated Completions...... 1,245
00.02 2012 Accelerated Completions...... 2,228
00.03 2035 Accelerated Completions...... 1,979
00.04 Safeguards and security........... 54 37 299
00.05 Technology Development and
Deployment...................... 64
00.06 Site closure...................... 1,039 1,057
--------- --------- ----------
10.00 Total new obligations........... 1,094 1,093 5,815
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 2
22.00 New budget authority (gross)...... 1,094 1,091 5,815
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,096 1,093 5,815
23.95 Total new obligations............. -1,094 -1,093 -5,815
24.40 Unobligated balance carried
forward, end of year............ 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,093 1,091 5,815
40.76 Reduction pursuant to P.L. 107-
206........................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,092 1,091 5,815
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,094 1,091 5,815
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 358 364 383
73.10 Total new obligations............. 1,094 1,093 5,815
73.20 Total outlays (gross)............. -1,110 -1,075 -4,398
73.32 Obligated balance transferred from
other accounts.................. 21
74.40 Obligated balance, end of year.... 364 383 1,800
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 751 764 4,070
86.93 Outlays from discretionary
balances........................ 359 311 328
--------- --------- ----------
87.00 Total outlays (gross)........... 1,110 1,075 4,398
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,092 1,091 5,815
90.00 Outlays........................... 1,107 1,075 4,398
---------------------------------------------------------------------------

2006 Accelerated Completions.--Provides funding for completing
cleanup and closing down facilities contaminated as a result of nuclear
weapons production. This account includes all geographic sites with an
accelerated cleanup plan closure date of 2006 or earlier (such as Rocky
Flats, Fernald and Mound). In addition, this account provides funding
for Environmental Management (EM) sites where overall site cleanup will
not be complete by 2006 but cleanup projects within a site (for example,
spent fuel removal, all transuranic (TRU) waste shipped off-site) will
be complete by 2006.

2012 Accelerated Completions.--Provides funding for completing
cleanup and closing down facilities contaminated as a result of nuclear
weapons production. This account includes all geographic sites with an
accelerated cleanup plan closure date of 2007 through 2012 (such as
Pantex and Lawrence Livermore National Laboratory--Site 300). In
addition, this account provides funding for EM sites where overall site
cleanup will not be complete by 2012 but cleanup projects within a site
(for example, spent fuel removal and TRU waste shipped off-site) will be
complete by 2012.

2035 Accelerated Completions.--Provides funding for completing
cleanup and closing down facilities contaminated as a result of nuclear
weapons production. This account provides funding for site closures and
site specific cleanup and closure projects that are expected to be
completed after 2012. EM has established a goal of completing cleanup at
all its sites by 2035.

Safeguards and Security.--Provides funding to support safeguards and
security required for sites at which EM has responsibility. This
includes activities related to site-specific safeguards and security
plans, facilities master security plans, cyber security plans, and
personnel security programs at EM sites.

Technology Development and Deployment.--This program focuses on high
priority technical needs at near-term closure sites and projects. In
addition, the technology program will focus on identifying technical
vulnerabilities and alternative solutions in support of EM's accelerated
cleanup strategies.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0251-0-1-053 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
23.3 Communications, utilities, and
miscellaneous charges........... 4 4 8
25.1 Advisory and assistance services.. 1 1 110
25.2 Other services.................... 38 38 673
25.3 Other purchases of goods and
services from Government
accounts........................ 5 5 64
25.4 Operation and maintenance of
facilities...................... 1,043 1,042 4,256
25.5 Research and development contracts 52
26.0 Supplies and materials............ 3
31.0 Equipment......................... 30
32.0 Land and structures............... 525
41.0 Grants, subsidies, and
contributions................... 3 3 94
--------- --------- ----------
99.9 Total new obligations........... 1,094 1,093 5,815
---------------------------------------------------------------------------

Defense Environmental Services

For Department of Energy expenses necessary for defense-related
environmental services activities that indirectly support the
accelerated cleanup and closure mission at environmental management
sites, including the purchase, construction, and acquisition of plant
and capital equipment and other necessary expenses, and the purchase of
not to exceed one ambulance for replacement only, $995,179,000, to
remain available until expended.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Community and Regulatory Support.. 61
00.02 Federal contribution to the
Uranium Enrichment
Decontamination and
Decommissioning Fund............ 452
00.03 Non-Closure Environmental
Activities...................... 190
00.04 Program Direction................. 292
00.05 Privatization..................... 109 236
--------- --------- ----------
10.00 Total new obligations........... 109 236 995
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 34 78
22.00 New budget authority (gross)...... 154 158 995
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 188 236 995
23.95 Total new obligations............. -109 -236 -995
24.40 Unobligated balance carried
forward, end of year............ 78
----------------------------------------------------------------------------

[[Page 367]]

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 154 158 995
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 638 656 671
73.10 Total new obligations............. 109 236 995
73.20 Total outlays (gross)............. -91 -221 -903
74.40 Obligated balance, end of year.... 656 671 763
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 697
86.93 Outlays from discretionary
balances........................ 91 221 206
--------- --------- ----------
87.00 Total outlays (gross)........... 91 221 903
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 154 158 995
90.00 Outlays........................... 91 221 903
---------------------------------------------------------------------------

The Department is pursuing several privatization initiatives for
environmental management projects that will treat some of the most
contaminated soil and highly radioactive waste in the complex, as well
as deactivate contaminated nuclear facilities that are excess to
Departments needs. In the 2004 budget, these activities will be funded
in the Defense Site Acceleration Completion and Defense Environmental
Services appropriations.

Non-Closure Environmental Activities.--Funds ongoing activities that
indirectly support the Environmental Management accelerated cleanup and
closure mission. These activities provide valuable support to other
Departmental priorities and missions.

Community and Regulatory Support.--Funds activities that are
indirectly related to on-the-ground cleanup results and are integral to
EM's ability to conduct cleanup at sites (for example, Agreements in
Principle with state regulators and tribal nations, and Site Specific
Advisory Boards).

Program Direction.--Provides the funding necessary for oversight and
management functions for the EM program, including federal salaries and
benefits, travel, and other costs.

Federal Contribution to the Uranium Enrichment Decontamination and
Decommissioning (D&D) Fund.--Funds the Federal Government contribution
to the Uranium Enrichment D&D Fund, as required by the Energy Policy Act
of 1992.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0249-0-1-053 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services..
25.2 Other services....................
25.4 Operation and maintenance of
facilities......................
--------- --------- ----------
99.9 Total new obligations...........
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 198
11.3 Other than full-time permanent.. 7
11.5 Other personnel compensation.... 5
--------- --------- ----------
11.9 Total personnel compensation.. 210
12.1 Civilian personnel benefits....... 43
13.0 Benefits for former personnel..... 1
21.0 Travel and transportation of
persons......................... 7
23.1 Rental payments to GSA............ 7
23.2 Rental payments to others......... 2
23.3 Communications, utilities, and
miscellaneous charges........... 5
25.1 Advisory and assistance services.. 57
25.2 Other services.................... 102 236 207
25.3 Other purchases of goods and
services from Government
accounts........................ 402
25.4 Operation and maintenance of
facilities...................... 7
26.0 Supplies and materials............ 1
31.0 Equipment......................... 12
32.0 Land and structures............... 34
41.0 Grants, subsidies, and
contributions................... 7
--------- --------- ----------
99.9 Total new obligations........... 109 236 995
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0249-0-1-053 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 1,972
---------------------------------------------------------------------------

Environmental Management Cleanup Reform

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0245-0-1-053 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Cleanup Reform.................... 1,100
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 1,100
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1,100
23.95 Total new obligations............. -1,100
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,100
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 330
73.10 Total new obligations............. 1,100
73.20 Total outlays (gross)............. -770 -275
74.40 Obligated balance, end of year.... 330 55
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 770
86.93 Outlays from discretionary
balances........................ 275
--------- --------- ----------
87.00 Total outlays (gross)........... 770 275
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,100
90.00 Outlays........................... 770 275
---------------------------------------------------------------------------

The Department is pursuing alternative accelerated cleanup and risk-
reduction strategies that will significantly reduce life-cycle cost and
schedules for cleanup of the former nuclear weapons production complex.
When the Department reaches agreement with regulatory officials on these
strategies, establishes a new funding profile and estimates the cost
savings for the alternate cleanup strategy, these activities will be
funded within the appropriate Defense or Non-Defense Site Acceleration
Completion appropriation.

Other Defense Activities

For Department of Energy expenses, including the purchase,
construction, and acquisition of plant and capital equipment and other
expenses necessary for atomic energy defense, other defense activities,
in carrying out the purposes of the Department of Energy Organization
Act (42 U.S.C. 7101 et seq.), including the acquisition or condemnation
of any real property or any facility or for plant or facility
acquisition, construction, or expansion, $522,678,000, to remain
available until expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Energy Security................... 5 4 4

[[Page 368]]

00.02 Security.......................... 251 189 211
00.03 Intelligence...................... 38 44 40
00.04 CounterIntelligence............... 46 50 46
00.05 Advanced Accelerator Applications. 50
00.06 Independent Oversight and
Performance Assurance........... 22 22 22
00.07 Environment, Safety, and Health
(Defense)....................... 110 101 108
00.08 Worker and Community Transition... 17 29 15
00.09 National Security Programs
Administrative Support.......... 22 26 25
00.10 Hearings and Appeals.............. 3 3 4
00.11 Other............................. 4 4
00.12 Legacy Management................. 48
--------- --------- ----------
10.00 Total new obligations........... 568 472 523
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 41 27
22.00 New budget authority (gross)...... 551 445 523
22.10 Resources available from
recoveries of prior year
obligations..................... 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 595 472 523
23.95 Total new obligations............. -568 -472 -523
24.40 Unobligated balance carried
forward, end of year............ 27
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 551 445 523
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 282 297 298
73.10 Total new obligations............. 568 472 523
73.20 Total outlays (gross)............. -540 -473 -504
73.31 Obligated balance transferred to
other accounts.................. -12
73.32 Obligated balance transferred from
other accounts.................. 3
73.45 Recoveries of prior year
obligations..................... -3
74.40 Obligated balance, end of year.... 297 298 317
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 413 334 392
86.93 Outlays from discretionary
balances........................ 127 139 112
--------- --------- ----------
87.00 Total outlays (gross)........... 540 473 504
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 551 445 523
90.00 Outlays........................... 540 473 504
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 4 3 4
99.01 Outlays........................... 4 3 4
---------------------------------------------------------------------------

Intelligence.--The Department's intelligence activities consist of
providing the Department, other U.S. Government policy makers, and the
Intelligence Community with timely, accurate high impact foreign
intelligence technical analyses including support to
counterintelligence; ensuring that DOE facilities and employees are able
to handle and use classified intelligence information securely in
support of their missions; providing quick-turnaround, tailored
technology applications to meet near-term requirements; providing
technical support to operations undertaken by the intelligence, special
operations, and law enforcement communities; and ensuring that the
Department's technical, analytical and research expertise is accessible
to the Intelligence Community in accordance with Executive Order 12333,
``United States Intelligence Activities.''

Counterintelligence.--The Office of Counterintelligence mission is
to develop and implement an effective Counterintelligence Program
throughout the Department of Energy to identify, neutralize and deter
foreign government or industrial intelligence, and international
terrorist activities at or involving DOE programs, personnel,
facilities, technologies, classified information and unclassified
sensitive information. The program provides the analytical;
investigative; training and awareness; inspection; information and
special technologies; polygraph; and evaluation capabilities necessary
to identify and address foreign intelligence and international terrorist
targeting and collection activities directed at DOE facilities.

Security.--Security consists of the following programs: Nuclear
Safeguards and Security, Security Investigations and Program Direction.
Key mission areas are: physical, information, technology evaluation;
materials control and accountability; executive protection police force;
protective measures for DOE facilities and protection of its employees
in the National Capital area; declassification/classification; foreign
visits, assignments and travel; plutonium, uranium, and special nuclear
material inventory; management of the Department's Emergency Operations
Centers, Emergency Communications Network and the Continuity of
Operations and Continuity of Government programs; and security
investigations. These programs provide policy for the protection of the
Department's nuclear weapons, nuclear materials, classified information,
and facilities. They ensure a Department-wide capability to continue
essential functions across a wide range of potential emergencies,
allowing DOE to uphold its national security responsibilities and
provide security clearances for federal and contractor personnel. Prior
to 2003, Security was budgeted under Security and Emergency Operations.

Energy Security and Assurance.--This program supports the national
security of the United States by working to protect the Nation against
significant energy supply disruptions. America's energy supply is
essential to a strong economy and national security.

Worker and community transition.--This program provides for the
development, implementation, and funding of plans under section 3161 of
the National Defense Authorization Act of 1993, to provide options to
assist workers affected by workforce restructuring including preference
in hiring, outplacement assistance, and relocation assistance. This
program also provides impact assistance to local communities, as well as
disposition of assets excess to current Department needs.

Environment, safety and health (Defense).--The Office of
Environment, Safety and Health is a corporate resource that provides
Departmental leadership and management to protect the workers, public,
and environment. The programs in the other defense activities are
oversight, health studies, radiation effects research foundation, and
employee compensation support as well as program direction.

Independent oversight and performance assurance.--This program
provides an independent assessment of the effectiveness of Departmental
policies and site performance in the areas of environment, safety,
health safeguards, security, emergency management, cyber security, and
other critical functions. Appraisals are performed to determine whether
site programs are effectively implemented and achieving Department-wide
and site specific objectives.

All other.--This category includes obligations for a portion of the
projects reviewed under the Independent Assessment of DOE project
funding. In addition, obligations are included for the National Security
Programs Administrative Support and the Office of Hearings and Appeals.
Responsibilities of the Office of Hearings and Appeals include
adjudications of matters involving DOE and contractor employees'
eligibility for security clearances, appeals of adverse determinations
under the Freedom of Information and Privacy Acts. The Office of
Hearings and Appeals adjudicates complaints of reprisals by contractor-
employees for ``whistleblowing'', and is the appeal authority in many
other areas. During 2002, the Office of Hearings and Appeals was charged
with the responsibility to decide worker advocacy appeals under the
Energy Employee Occupational Illness Compensation Program Act of 2000
and appeals arising under the new terms of OMB Circular A-76 regarding
the contracting out of DOE functions.

[[Page 369]]

The Office also decides all requests for exception from DOE orders,
rules and regulations.

Office of Legacy Management.--Provides funding for conducting
stewardship activities at sites where active remediation as a result of
weapons production has been completed. These activities include records
management, ground-water monitoring and the administration of post
closure contractor liabilities.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 66 64 66
11.3 Other than full-time permanent.. 2 1 2
11.5 Other personnel compensation.... 2 2 2
--------- --------- ----------
11.9 Total personnel compensation.. 70 67 70
12.1 Civilian personnel benefits....... 17 15 15
13.0 Benefits for former personnel..... 1 1 1
21.0 Travel and transportation of
persons......................... 4 3 3
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.1 Advisory and assistance services.. 40 34 38
25.2 Other services.................... 208 164 183
25.3 Other purchases of goods and
services from Government
accounts........................ 24 19 24
25.4 Operation and maintenance of
facilities...................... 167 137 154
25.5 Research and development contracts 7 6 6
25.7 Operation and maintenance of
equipment....................... 2 2 2
26.0 Supplies and materials............ 5 5 5
31.0 Equipment......................... 4 3 4
41.0 Grants, subsidies, and
contributions................... 18 15 17
--------- --------- ----------
99.9 Total new obligations........... 568 472 523
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0243-0-1-999 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 628 614 726
---------------------------------------------------------------------------

Defense Nuclear Waste Disposal

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program activity........... 280 315 430
--------- --------- ----------
10.00 Total new obligations........... 280 315 430
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 280 315 430
23.95 Total new obligations............. -280 -315 -430
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 280 315 430
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 10 26 79
73.10 Total new obligations............. 280 315 430
73.20 Total outlays (gross)............. -263 -262 -402
74.40 Obligated balance, end of year.... 26 79 107
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 185 236 323
86.93 Outlays from discretionary
balances........................ 78 26 79
--------- --------- ----------
87.00 Total outlays (gross)........... 263 262 402
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 280 315 430
90.00 Outlays........................... 263 262 402
---------------------------------------------------------------------------

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

The program's cost estimates reflect DOE's best projections, given
the scope of work identified and planned schedule of required
activities. Future budget requests for the Program have yet to be
established and will be determined through the annual executive and
congressional budget process.

Since passage of the Nuclear Waste Policy Act of 1982, as amended,
the Nuclear Waste Fund has incurred costs for activities related to
disposal of high-level waste generated from the atomic energy defense
activities of the Department of Energy. At the end of 2002 the balance
owed by the Federal Government to the Nuclear Waste Fund was
approximately $1,223 million (including principal and interest). The
``Defense Nuclear Waste Disposal'' appropriation was established to
ensure payment of the Federal Government's contribution to the nuclear
waste repository program. Through 2002, a total of approximately $1,710
million has been appropriated to support nuclear waste repository
activities attributed to atomic energy defense activities.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0244-0-1-053 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
25.2 Other services (Consulting)....... 1 1 2
25.3 Other purchases of goods and
services from Government
accounts........................ 11 12 16
25.4 Operation and maintenance of
facilities...................... 248 279 381
41.0 Grants, subsidies, and
contributions................... 20 23 31
--------- --------- ----------
99.9 Total new obligations........... 280 315 430
---------------------------------------------------------------------------

ENERGY PROGRAMS

Federal Funds

General and special funds:

Science

For Department of Energy expenses including the purchase,
construction and acquisition of plant and capital equipment, and other
expenses necessary for science activities in carrying out the purposes
of the Department of Energy Organization Act (42 U.S.C. 7101 et seq.),
including the acquisition or condemnation of any real property or
facility or for plant or facility acquisition, construction, or
expansion, and purchase of not to exceed 15 passenger motor vehicles for
replacement only, including not to exceed one ambulance, $3,310,935,000,
to remain available until expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 High energy physics............... 697 726 738
00.03 Nuclear physics................... 351 383 389
00.05 Biological and environmental
research........................ 512 485 500
00.06 Basic energy sciences............. 981 1,020 1,009
00.07 Advanced scientific computing
research........................ 150 168 173
00.08 Energy research analyses.......... 1 1
00.09 Science laboratory infrastructure. 30 43 44
00.11 Program direction................. 139 134 151
00.12 Small business innovation research 94
00.13 Small business technology transfer 6
00.14 Fusion energy sciences............ 241 257 257
00.15 Safeguard and securities.......... 53 48 44

[[Page 370]]

00.16 Facilities and infrastructure..... 10
00.17 Workforce development for teachers
& scientists.................... 6
--------- --------- ----------
10.00 Total new obligations........... 3,265 3,265 3,311
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 9 9
22.00 New budget authority (gross)...... 3,263 3,256 3,311
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,274 3,265 3,311
23.95 Total new obligations............. -3,265 -3,265 -3,311
24.40 Unobligated balance carried
forward, end of year............ 9
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 3,228 3,256 3,311
40.76 Reduction pursuant to P.L. 107-
206........................... -1
42.00 Transferred from other accounts. 36
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 3,263 3,256 3,311
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,739 1,822 1,833
73.10 Total new obligations............. 3,265 3,265 3,311
73.20 Total outlays (gross)............. -3,180 -3,254 -3,290
73.45 Recoveries of prior year
obligations..................... -2
74.40 Obligated balance, end of year.... 1,822 1,833 1,854
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,870 1,889 1,921
86.93 Outlays from discretionary
balances........................ 1,310 1,365 1,369
--------- --------- ----------
87.00 Total outlays (gross)........... 3,180 3,254 3,290
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3,263 3,256 3,311
90.00 Outlays........................... 3,180 3,254 3,290
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 7 6 6
99.01 Outlays........................... 7 6 6
---------------------------------------------------------------------------

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

Research in 2004 will continue to focus on studies of known
fundamental particle constituents, the search for new particle
constituents, and the pursuit of a unified description of the four
fundamental forces in nature.

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

The 2004 high energy physics budget request will support the
continued operation of two of the Department's major high energy physics
facilities: the Fermilab Tevatron and the Stanford B-Factory. Fixed
target operations for the Alternate Gradient Synchroton HEP program were
terminated in FY 2003. In addition, $48.8 million is provided for the
Department's 2004 contribution to continued U.S. participation in the
large hadron collider project at the European Center for Nuclear
Research.

The high energy physics R&D request provides funding for advanced
accelerator and detector R&D that is necessary for next-generation high
energy particle accelerators. The request also includes $12.5 million
for the neutrinos at the main injector construction project. The budget
includes funds for an increasing emphasis on non-accelerator-based high
energy physics research.

Nuclear Physics.--The goal of the nuclear physics program is to
understand the interactions and structure of atomic nuclei and to
investigate fundamental particles and forces of nature as manifested in
nuclear matter. In 2004, the program will continue to focus on the role
of quarks in the composition and interactions of nuclei, the application
of nuclear physics methods to astrophysical problems, the properties of
neutrinos, and the mechanisms by which colliding nuclei exchange mass,
energy, and angular momentum.

The nuclear physics program supports and provides experimental
equipment to qualified scientists and research groups conducting
experiments at nuclear physics accelerator facilities. These facilities
provide new insights and advance our knowledge of the nature of matter
and energy and develop the scientific knowledge, technologies and
trained manpower needed to underpin the DOE's missions for nuclear
related national security, energy and environmental quality.

The Thomas Jefferson National Accelerator Facility/Continuous
Electron Beam Accelerator Facility experimental program began in 1996
and will continue in 2004. At the MIT/Bates accelerator a program of
research utilizing the BLAST large acceptance detector will continue.
Experimental operations at the Radioactive Ion Beam facility in Oak
Ridge National Laboratory will continue in 2004. Operation of ATLAS
(ANL) will be supported, as will the operation of the university-based
accelerator laboratories. The 88-inch cyclotron (LBNL) will be
terminated.

The Relativistic Heavy Ion Collider (RHIC) research program will
continue as RHIC and its four major detectors approach their full design
potential, allowing researchers to explore a new regime of nuclear
matter and nuclear interactions that up to now have only been
characterized theoretically. Research and development for a possible
future facility, the rare isotope accelerator, continues. The budget
includes funds for an increasing emphasis on non-accelerator-based
nuclear physics research.

Biological and environmental research.--This program develops the
knowledge base necessary to identify, understand, and anticipate the
long-term health and environmental consequences of energy use and
development and utilizes the Department's unique scientific and
technological capabilities to solve major scientific problems in the
environment, medicine, and biology. Planned 2004 activities include
programs in global climate change; terrestrial, atmospheric and marine
environmental processes; molecular, cellular and systemic studies on the
biological effects of radiation; structural biology; medical
applications of nuclear technology; and the Human Genome Program.
Funding for the Human Genome Program is provided to continue high
throughput human DNA sequencing. The program also supports science
related to carbon sequestration and sequencing of genomes of microbes
that use carbon dioxide to produce methane and hydrogen. In conjunction
with the advanced scientific computing research program a global systems
application is continued to accelerate progress in coupled general
circulation model development through use of enhanced computer
simulation and modeling.

[[Page 371]]

The ``genomes to life'' activity, aimed at understanding the composition
and function of biochemical networks that carry out essential processes
of living organisms is funded at $59.0 million. In 2003, the
Environmental Management Science Program and the Savannah River Ecology
Laboratory were transferred from the Office of Environmental Management
to the Office of Science. The biological and environmental research
request includes funding to continue these two activities in 2004.
Activities related to bioterrorism will be transferred in 2003 to the
Department of Homeland Security.

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

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

The 2004 BES budget request includes continued support to maintain
utilization of the Department's large state-of-the-art science
facilities. The proposed funding will maintain the quality of service
and availability of facility resources to users, including university
and government scientists, as well as private companies who rely on
unique BES facilities for their basic research needs. Research areas
that will benefit from the facilities funding include structural
biology, materials science, superconductor technology, and medical
research and technology development.

In addition, the BES request includes $143.0 million in 2004 to
continue construction at Oak Ridge National Laboratory for the
Spallation Neutron Source (SNS) to meet the Nation's neutron scattering
needs. The request includes $5 million to continue design and
fabrication of additional instruments beyond the initial instrument
suite included in the construction project. The SNS will provide
significant scientific, technical, and economic benefits that derive
from neutron scattering and materials irradiation research. This world
class Neutron source will enable the Nation to carry out major research
activities in areas such as biology, materials science,
superconductivity, pharmaceuticals, and electronic materials, that are
critical for future U.S. economic competitiveness and national security.
Reflecting the high priority given to nanoscale research, basic energy
sciences funding for the multi-agency national nanotechnology program is
$193.0 million and includes PED funding for the nanoscale science
research center (NSRC) at Brookhaven National Laboratory and
construction funding for NSRC's at the Lawrence Berkeley, Oak Ridge, and
Sandia National Laboratories. Equipment is funded for the NSRC at ANL,
where the state of Illinois is providing funding for the building.

Fusion Energy Sciences Program.--The fusion energy sciences program
for 2004 continues to implement the recommendations of the reports by
the National Research Council, the Secretary of Energy Advisory Board
and recommendations of the Fusion Energy Science Advisory committee. The
mission of the program is to advance plasma science, fusion science, and
fusion technology. The program emphasizes the underlying basic research
in plasma and fusion sciences, with the long-term goal of harnessing
fusion as a viable energy source. The program centers on the following
goals: understanding the physics of plasmas; identification and
exploration of innovative and cost effective development paths to fusion
energy; and exploration of the science and technology of energy
producing plasmas, as a partner in an international effort.

The budget includes funds for the Department to enter multilateral
international negotiations aimed at building the International
Thermonuclear Experimental Reactor (ITER), a burning plasma physics
experiment that is an essential next step toward eventually developing
fusion as a commercially viable energy source.

The budget request provides for support of basic research in plasma
science in partnership with NSF, plasma containment research, and
investigation of tokamak alternatives, along with continued operation of
DIII-D, Alcator C-Mod, and the National Spherical Torus Experiment.
Research on alternate concepts is continued to develop a fuller
understanding of the physics of magnetically confined plasma and to
identify approaches that may improve the economical and environmental
attractiveness of fusion. Fabrication of the new National Compact
Stellarator experiment will continue at Princeton Plasma Physics
Laboratory. The inertial fusion energy activity is exploring an
alternative path for fusion energy that would capitalize on the major
R&D effort in inertial confinement fusion which is carried out by NNSA
for stockpile stewardship purposes. Theory and modeling efforts will be
supported to develop a predictive capability for the operation of fusion
experiments. Enabling technology research will also be conducted in
support of the science experiments.

Science laboratories infrastructure.--The goal of the science
laboratories infrastructure program is to provide funds for
rehabilitating, replacing or demolishing deficient common-use utilities,
roads, and buildings and to correct Environment, Safety and Health
deficiencies at the civilian science laboratories. An ``excess
facilities disposal'' subprogram, first funded by Congress in 2002 as
the Facilities and Infrastructure program, continues in 2004 in the
Science Laboratories Infrastructure program. The Oak Ridge Landlord
activity is also funded here.

Advanced Scientific Computing Research (ASCR).--This program
includes research in mathematical, information, and computational
sciences and laboratory technology research activities. The purpose of
the ASCR program is to support advanced computational research--applied
mathematics, computer science, and networking--to enable the analysis,
simulation and prediction of complex physical phenomena. The program
also supports the operation of large supercomputer user facilities. The
request includes research, integrated with other science programs, on
application of computer simulation and modeling to science problems. The
budget includes research funds to identify and address major
architectural bottlenecks affecting the performance of existing and
planned scientific applications for the next generation of high-end
supercomputers.

Safeguards and security.--The mission of this program is to ensure
appropriate levels of protection and provide against: unauthorized
access, theft, diversion, loss of custody, or destruction of Department
of Energy assets and hostile acts that may cause adverse impacts on
fundamental science, or the health and safety of DOE and contractor
employees, the public, or the environment. The 2004 request provides
funding for physical protection, protective forces, physical security,
protective systems, information security, cyber security, personnel
security, materials control and accountability and program management
activities.

Workforce development for teachers and scientists.--The mission of
this program is to train young scientists, engineers, and technicians in
the scientifically and technically advanced environment of the Office of
Science national laboratories to meet the demand for a well trained
scientific and technical workforce, including the teachers that educate
the workforce.

[[Page 372]]

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 66 73 85
11.3 Other than full-time permanent.. 2 2 2
11.5 Other personnel compensation.... 4 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 72 76 88
12.1 Civilian personnel benefits....... 15 18 13
13.0 Benefits for former personnel..... 1 1 1
21.0 Travel and transportation of
persons......................... 3 2 2
23.1 Rental payments to GSA............ 1 4 4
23.2 Rental payments to others......... 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 5 4 5
25.1 Advisory and assistance services.. 10 4 4
25.2 Other services.................... 47 61 63
25.3 Other purchases of goods and
services from Government
accounts........................ 5 16 15
25.4 Operation and maintenance of
facilities...................... 1,727 853 905
25.5 Research and development contracts 71 1,089 1,152
26.0 Supplies and materials............ 1 7 7
31.0 Equipment......................... 224 225 226
32.0 Land and structures............... 390 375 333
41.0 Grants, subsidies, and
contributions................... 693 529 492
--------- --------- ----------
99.9 Total new obligations........... 3,265 3,265 3,311
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0222-0-1-251 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 853 965 965
---------------------------------------------------------------------------

Energy Supply

For Department of Energy expenses including the purchase,
construction, and acquisition of plant and capital equipment, and other
expenses necessary for energy supply activities in carrying out the
purposes of the Department of Energy Organization Act (42 U.S.C. 7101 et
seq.), including the acquisition or condemnation of any real property or
any facility or for plant or facility acquisition, construction, or
expansion, and the purchase of not to exceed 12 passenger motor vehicles
for replacement only, including two buses; $861,805,000, to remain
available until expended, of which $17,300,000 shall be used to support
research and development contracts on technological approaches to
reduce, avoid, or capture greenhouse gas emissions, to be awarded
pursuant to competitive solicitations.

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Hydrogen technology............. 88
00.02 Solar energy.................... 80
00.03 Zero energy buildings........... 4
00.04 Wind energy..................... 42
00.05 Hydropower...................... 7
00.06 Geothermal technology........... 25
00.07 Biomass and biorefinery systems
R&D........................... 70
00.08 Intergovernmental activities.... 12
00.09 Electric reliability............ 77
00.10 Departmental energy management
program....................... 2
00.11 NCCTI Competitive Solicitation.. 15
00.12 Facilities and infrastructure... 5
00.13 Program direction............... 19 16 17
00.14 Renewable energy technologies,
including hydrogen research... 264 304
00.15 Electric energy systems and
storage....................... 66 75
00.16 Renewable energy program support
and implementation............ 14 24
00.17 National renewable energy
laboratory.................... 5 5
--------- --------- ----------
00.91 Total, Energy efficiency and
renewable energy............ 368 424 444
Office of science:
01.01 Technical information
management program.......... 8 8
01.02 Nuclear energy research and
development................... 245 254 388
01.03 Environment, safety and health.. 30 30 30
--------- --------- ----------
01.91 Total, Other Energy Supply.... 283 292 418
--------- --------- ----------
08.00 Total, direct program........... 651 716 862
09.10 Reimbursable program.............. 672 1,402 1,370
--------- --------- ----------
10.00 Total new obligations........... 1,323 2,118 2,232
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 67 74
22.00 New budget authority (gross)...... 1,331 2,044 2,232
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,398 2,118 2,232
23.95 Total new obligations............. -1,323 -2,118 -2,232
24.40 Unobligated balance carried
forward, end of year............ 74
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 667 694 862
41.00 Transferred to other accounts... -4
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 663 694 862
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 616 1,350 1,370
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 52
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 668 1,350 1,370
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,331 2,044 2,232
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 442 456 549
73.10 Total new obligations............. 1,323 2,118 2,232
73.20 Total outlays (gross)............. -1,255 -2,025 -2,135
73.40 Adjustments in expired accounts
(net)........................... -2
73.45 Recoveries of prior year
obligations..................... -1
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -52
74.40 Obligated balance, end of year.... 456 549 645
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 929 1,662 1,757
86.93 Outlays from discretionary
balances........................ 326 363 378
--------- --------- ----------
87.00 Total outlays (gross)........... 1,255 2,025 2,135
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -359 -720 -740
88.40 Non-Federal sources........... -257 -630 -630
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -616 -1,350 -1,370
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -52
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 663 694 862
90.00 Outlays........................... 638 675 765
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 3 3 3
99.01 Outlays........................... 3 3 3
---------------------------------------------------------------------------

The purpose of Energy Supply Research and Development activities is
to develop new energy technologies and improve existing energy
technologies. Included in this mission are basic and applied research
and targeted programs in technology development.

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

[[Page 373]]

The 2004 Budget proposes a major new initiative to accelerate the
worldwide availability and affordability of hydrogen-powered fuel cell
vehicles. The new FreedomFuel initiative will be a partnership with
energy companies focused on research and development to advance hydrogen
production, storage, and infrastructure. It complements the FreedomCAR
partnership with the auto industry announced last year, which is aimed
at developing viable hydrogen fuel cell vehicle technology.

Energy Efficiency and Renewable Energy.--This program undertakes
research and development of renewable energy and related technologies to
meet the growing need for clean and affordable energy. Program
activities range from basic research in universities and national
laboratories to cost-shared applied research, development, and field
validation in partnership with the private sector. Specific activities
of the 2004 program include:
Hydrogen Technology: Develop hydrogen production, storage, and
delivery technologies that are more energy efficient, cleaner,
safer, and lower in cost. The long-term aim is to accelerate
progress toward an energy future for the Nation where hydrogen plays
a more significant role as an energy carrier in all sectors of the
economy and all regions of the country. The program supports the new
FreedomFuel initiative.
Solar Energy: Develop lower cost, higher performance, more
reliable solar energy systems for the production of electricity,
space heat and hot water. Activities include more efficient
photovoltaic (PV) materials and cell devices, lower-cost thin-film
PV technologies, improved manufacturing and large-area processing,
and more reliable PV modules and systems as part of an industry-led
research effort. Solar thermal activities are focused on cooperative
industry efforts to reduce costs and effectively use advanced solar
technology for water heating and space heat.
Zero Energy Buildings: Develop affordable zero energy homes,
which produce as much energy as they use on an annual basis. ZEB
activities include partnering with industry to evaluate and monitor
first generation ZEB homes, developing whole house energy
controller, and developing modeling tools and technology to optimize
and integrate energy systems. This year, ZEB activities begin a
transition into the Building Program under the Energy Conservation
account.
Wind Energy: Develop in partnership with industry low wind-speed
technology to allow wind power to be cost-competitive in more
prevalent, lower-wind resources areas, and support related
technology base advances.
Hydropower: Continue development of turbine systems to address
the primary environmental issues associated with licensing and
sustaining hydropower production.
Geothermal Technology: Continue development of an enhanced
geothermal system that will allow the broader use of geothermal
energy throughout the western United States and conduct cooperative
research with industry to reduce the cost of geothermal development
and to identify new resources.
Biomass and Biorefinery Systems: Continue R&D to achieve further
reductions in the costs of bio-based products and biofuels
production and to develop high-efficiency thermochemical and
biochemical conversion technologies.
Intergovernmental Activities: The Tribal Energy program helps
Native Americans develop renewable energy resources on their lands
and helps Tribal leaders develop energy plans. The International
Renewable Energy program promotes the use of renewable energy
resources in international markets.
Electric Reliability: The program provides a balanced research
and development portfolio of advanced electrical infrastructure
technologies--more efficient, higher capacity generators,
transformers, power lines, and storage systems--as well as
developing the technological platform for the ``smart'' grid of the
future where operators have immediate information about conditions
on their system and are able to take action to correct potential
problems.
The Departmental Energy Management Program: Continue to fund,
through internal competition, the most cost effective opportunities
to improve energy efficiency in DOE's facilities, employing
renewable technologies as appropriate.
National Climate Change Technology Initiative Competitive
Solicitation Program: Supports competitive solicitations to promote
applied research that has as its primary goal the reduction of
greenhouse gas emissions or the sequestration of greenhouse gases.
Competitive awards will be made based on maximum emissions reduction
potential per dollar spent. The Competitive Solicitation Program is
a key component of the President's National Climate Change
Technology Initiative and is intended to complement and enrich the
existing research and development portfolio of climate-related
technologies, which may help to reduce greenhouse gas emissions, but
are not necessarily designed to do so. Funding for this program is
also requested in the Energy Conservation account and the Fossil
Energy account.

Nuclear fission.--The 2004 Budget continues to support the Nuclear
Energy Technologies program, including the Nuclear Power 2010 program,
which will aggressively pursue demonstration of key regulatory approval
processes and foster the completion of cost-effective, advanced nuclear
plant designs in order to pave the way for the deployment of new,
advanced nuclear plants in the United States by 2010. Nuclear Energy
Technologies also include the Generation IV Nuclear Energy Systems
Initiative, where the United States will participate in multi-nation
research and development projects to usher forth next-generation nuclear
reactors and fuel cycles. In collaboration with the Generation IV
Nuclear Energy Systems program, Advanced Fuel Cycle Initiative aims to
develop and deploy technologies that will reduce the volume of high
level waste from spent nuclear fuel, reduce the long-term radiotoxicity
of spent nuclear fuel, reduce the long-term proliferation threat posed
by civilian inventories of plutonium in spent fuel, and provide for
proliferation resistant technologies to recover the energy content in
spent nuclear fuel.

The Department also continues to support the University program,
preserving the education and training infrastructure needed to develop
the next generation of nuclear scientists and engineers. In addition,
the Administration's proposal supports the Nuclear Energy Research
Initiative (NERI), an investigator-initiated, peer-reviewed research and
development program that addresses key issues affecting the future of
nuclear energy, including nuclear waste storage and disposal, nuclear
plant economics and operational safety, and potential for weapons
proliferation.

Nuclear fission programs also support the Department's critical
infrastructure necessary to enable research on advanced nuclear power
systems for U.S. national security and other federal agencies, to
support the production of radioisotopes for medical and other research
purposes, and to maintain and operate the Department's nuclear
facilities, including the Advanced Test Reactor and hot cells, in a
safe, environmentally compliant and cost-effective manner. Beginning in
2004, the Office of Nuclear Energy, Science and Technology's budget also
includes funding for Idaho sitewide operations and safeguards and
security programs, as part of the Lead Program Secretarial Office
responsibilities for Idaho transitioning from the Office of
Environmental Management.

Environment, safety and health.--The Office of Environment, Safety
and Health is a corporate resource that fosters protection of workers,
the public, and the environment. The office develops and improves
policies; monitors environment,

[[Page 374]]

safety, and health performance; and provides guidance, resources, and
information sharing.

Note that the budget request for the Office of Environment, Safety
and Health programs is contained in two accounts: Energy Supply and
Other Defense Activities. The funding in this account supports policy,
standards and guidance and DOE-wide ES&H programs as well as program
direction.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 37 30 53
11.3 Other than full-time permanent 1 1 2
11.5 Other personnel compensation.. 1 1 2
--------- --------- ----------
11.9 Total personnel compensation 39 32 57
12.1 Civilian personnel benefits..... 8 7 12
21.0 Travel and transportation of
persons....................... 2 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
25.1 Advisory and assistance services 32 35 36
25.2 Other services.................. 16 18 18
25.3 Other purchases of goods and
services from Government
accounts...................... 17 19 19
25.4 Operation and maintenance of
facilities.................... 368 418 524
25.5 Research and development
contracts..................... 9 10 12
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 7 8 8
32.0 Land and structures............. 8 9 9
41.0 Grants, subsidies, and
contributions................. 143 156 163
--------- --------- ----------
99.0 Direct obligations............ 651 716 862
99.0 Reimbursable obligations.......... 672 1,402 1,370
--------- --------- ----------
99.9 Total new obligations........... 1,323 2,118 2,232
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0224-0-1-999 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 439 352 597
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 16
---------------------------------------------------------------------------

Non-Defense Site Acceleration Completion

For Department of Energy expenses, including the purchase,
construction, and acquisition of plant and capital equipment and other
expenses necessary for non-defense environmental management site
acceleration activities in carrying out the purposes of the Department
of Energy Organization Act (42 U.S.C. 7101 et seq.), including the
acquisition or condemnation of any real property or any facility or for
plant or facility acquisition, construction, or expansion, $170,875,000,
to remain available until expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 2006 Accelerated Completions...... 49
00.02 2012 Accelerated Completions...... 120
00.03 2035 Accelerated Completions...... 2
00.04 Excess facilities................. 2 2
00.05 Site closure...................... 18
00.06 Site/project completion........... 89 62
00.07 Post 2006 completion.............. 109 125
--------- --------- ----------
10.00 Total new obligations........... 218 189 171
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 23
22.00 New budget authority (gross)...... 239 166 171
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 241 189 171
23.95 Total new obligations............. -218 -189 -171
24.40 Unobligated balance carried
forward, end of year............ 23
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 236 166 171
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 3
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 239 166 171
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 112 91 62
73.10 Total new obligations............. 218 189 171
73.20 Total outlays (gross)............. -240 -218 -174
74.40 Obligated balance, end of year.... 91 62 59
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 166 116 120
86.93 Outlays from discretionary
balances........................ 74 102 54
--------- --------- ----------
87.00 Total outlays (gross)........... 240 218 174
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

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

Net budget authority and outlays:
89.00 Budget authority.................. 236 166 171
90.00 Outlays........................... 237 218 174
---------------------------------------------------------------------------

2006 Accelerated Completions.--Provides funding for completing
cleanup and closing down facilities contaminated as a result of nuclear
energy research and development. This account includes geographic sites
with an accelerated cleanup plan closure date of 2006 or earlier (such
as Lawrence Berkley National Laboratory). In addition, this account
provides funding for EM sites where overall site cleanup will not be
complete by 2006 but cleanup projects within a site (for example, spent
fuel removal and TRU waste shipped off-site) will be complete by 2006.

2012 Accelerated Completions.--Provides funding for completing
cleanup and closing down facilities contaminated as a result of nuclear
energy research and development. This account includes all geographic
sites with an Accelerated Cleanup Plan closure date of 2007 through 2012
(such as, Brookhaven National Laboratory and West Valley Demonstration
Project). In addition, this account provides funding for EM sites where
overall site cleanup will not be complete by 2012 but cleanup projects
within a site (for example, spent fuel removal and TRU waste shipped
off-site) will be complete by 2012.

2035 Accelerated Completions.--Provides funding for completing
cleanup and closing down facilities contaminated as a result of nuclear
energy research and development. This account provides funding for site
closures and site specific cleanup and closure projects that are
expected to be completed after 2012. EM has established a goal of
completing cleanup at all its sites by 2035.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0250-0-1-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
25.4 Operation and maintenance of
facilities...................... 215 186 171
41.0 Grants, subsidies, and
contributions................... 3 3
--------- --------- ----------
99.9 Total new obligations........... 218 189 171
---------------------------------------------------------------------------

[[Page 375]]

Non-Defense Environmental Services

For Department of Energy expenses necessary for non-defense
environmental services activities conducted as a result of nuclear
energy research and development activities that indirectly support the
accelerated cleanup and closure mission at environmental management
sites, as well as new work scope transferred to the Environmental
Management program, including the purchase, construction, and
acquisition of plant and capital equipment and other necessary expenses,
$292,121,000, to remain available until expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Community and Regulatory Support.. 1
00.02 Environmental Cleanup Projects.... 44
00.03 Non-closure Environmental
Activities...................... 247
--------- --------- ----------
00.91 Subtotal, Non-Defense
Environmental Services........ 292
Uranium Enrichment Decontamination and
Decommissioning Fund:

01.01 Environmental restoration and
waste management.............. 314 235
01.02 Uranium/Thorium reimbursements.. 1 1
--------- --------- ----------
01.91 Total, Uranium Enrichment
Decontamination and
Decommissioning Fund.......... 315 236
02.01 Other uranium activities.......... 123 147
--------- --------- ----------
10.00 Total new obligations........... 438 382 292
----------------------------------------------------------------------------

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

21.40 Unobligated balance carried
forward, start of year
[Uranium Enrichment D&D Fund]. 15
21.40 Unobligated balance carried
forward, start of year
[General Fund]................ 5
22.00 New budget authority (gross)...... 418 382 292
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 438 382 292
23.95 Total new obligations............. -438 -382 -292
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 119 147 292
42.00 Transferred from other accounts. 300 236
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 418 382 292
----------------------------------------------------------------------------

Change in obligated balances:
Obligated balance, start of year:

72.40 Obligated balance, start of year
[Uranium Enrichment D&D Fund]. 131 130 87
72.40 Obligated balance, start of year
[General Fund]................ 43 60 49
73.10 Total new obligations............. 438 382 292
73.20 Total outlays (gross)............. -422 -436 -321
Obligated balance, end of year:

74.40 Obligated balance, end of year
[Uranium Enrichment D&D Fund]. 130 87 13
74.40 Obligated balance, end of year
[General Fund]................ 60 49 94
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 228 267 204
86.93 Outlays from discretionary
balances........................ 194 169 117
--------- --------- ----------
87.00 Total outlays (gross)........... 422 436 321
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 418 382 292
90.00 Outlays........................... 422 436 321
---------------------------------------------------------------------------

Non-Closure Environmental Activities.--Funds activities that
indirectly support EM's accelerated cleanup and closure mission such as
gaseous diffusion plant uranium programs. These activities, while not in
direct support of cleanup, provide valuable services to other
Departmental priorities and missions.

Community and Regulatory Support.--Funds activities that are
indirectly related to on-the-ground cleanup results but are integral to
EM's ability to conduct cleanup at our sites (for example, Agreements in
Principles with state regulators and tribal nations and Site Specific
Advisory Boards).

Environmental Cleanup Projects.--Proivdes funds to support the
transfer of additional contaminated excess facilities to the EM program
from other Departmental programs for surveillance and maintenance and
eventual decontamination and decommissioning (for example, the Fast Flux
Test Facility beginning in 2004). These transfers constitute new work
for the EM program.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0315-0-1-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
23.3 Communications, utilities, and
miscellaneous charges........... 4 4 1
25.2 Other services.................... 171 149 100
25.4 Operation and maintenance of
facilities...................... 246 214 176
32.0 Land and structures............... 13 11 10
41.0 Grants, subsidies, and
contributions................... 4 4 5
--------- --------- ----------
99.9 Total new obligations........... 438 382 292
---------------------------------------------------------------------------

Fossil Energy Research and Development

For necessary expenses in carrying out fossil energy research and
development activities, under the authority of the Department of Energy
Organization Act (Public Law 95-91), including the acquisition of
interest, including defeasible and equitable interests in any real
property or any facility or for plant or facility acquisition or
expansion, and for conducting inquiries, technological investigations
and research concerning the extraction, processing, use, and disposal of
mineral substances without objectionable social and environmental costs
(30 U.S.C. 3, 1602, and 1603), $519,305,000, to remain available until
expended, of which $5,000,000 shall be derived by transfer of
unobligated balances from ``SPR Petroleum Account''; of which
$13,200,000 shall be used to support research and development contracts
on technological approaches to reduce, avoid, or capture greenhouse gas
emissions, to be awarded pursuant to competitive solicitations; and of
which $130,000,000 are to be made available, after coordination with the
private sector, for a request for proposals for a Clean Coal Power
Initiative providing for competitively-awarded research, development,
and demonstration projects to reduce the barriers to continued and
expanded coal use: Provided, That no project may be selected for which
sufficient funding is not available to provide for the total project:
Provided further, That funds shall be expended in accordance with the
provisions governing the use of funds contained under the heading
``Clean Coal Technology'' in 42 U.S.C. 5903d: Provided further, That the
Department may include provisions for royalties or other means of
repayment of Government contributions to individual projects, including
repayments from sale and licensing of technologies from both domestic
and foreign transactions: Provided further, That such repayments shall
be retained by the Department for future coal-related research,
development and demonstration projects, subject to appropriation in
advance: Provided further, That any technology selected under this
program shall be considered a Clean Coal Technology, and any project
selected under this program shall be considered a Clean Coal Technology
Project, for the purposes of 42 U.S.C. Sec. 7651n, and Chapters 51, 52,
and 60 of title 40 of the Code of Federal Regulations.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 President's Coal Research
Initiative...................... 270 316 321
00.02 Other power systems............... 13 50 47
00.03 Oil and gas research and
development..................... 99 58 42
00.04 Program direction and management
support......................... 67 85 93
00.05 Environmental restoration......... 11 10 10
00.06 Cooperative research and
development ventures............ 8 6 6
00.07 Import/Export authorizations...... 2 2 3
00.08 Plant and capital equipment....... 3 2 3
00.09 Advanced metallurgical process.... 5 5 10
--------- --------- ----------

[[Page 376]]

10.00 Total new obligations........... 478 534 535
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 125 260 459
22.00 New budget authority (gross)...... 578 479 519
22.10 Resources available from
recoveries of prior year
obligations..................... 2
22.22 Unobligated balance transferred
from other accounts............. 34 254
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 739 993 978
23.95 Total new obligations............. -478 -534 -535
24.40 Unobligated balance carried
forward, end of year............ 260 459 444
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 583 479 514
41.00 Transferred to other accounts... -12
42.00 Transferred from other accounts. 8 5
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 578 479 519
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 415 470 547
73.10 Total new obligations............. 478 534 535
73.20 Total outlays (gross)............. -421 -691 -651
73.32 Obligated balance transferred from
other accounts--Clean Coal...... 234
73.45 Recoveries of prior year
obligations..................... -2
74.40 Obligated balance, end of year.... 470 547 431
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 233 192 208
86.93 Outlays from discretionary
balances........................ 188 499 443
--------- --------- ----------
87.00 Total outlays (gross)........... 421 691 651
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 578 479 519
90.00 Outlays........................... 421 691 651
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 4 5 5
99.01 Outlays........................... 4 5 5
---------------------------------------------------------------------------
Note.--Excludes $5 million in budget authority in BY for natural gas
infrastructure activities transferred to the Department of Transportation,
Office of Pipeline Safety. Comparable amounts for PY ($10 million) and CY
($10 million) are included above.

The Fossil Energy Research and Development program supports high-
priority, high-risk research that will improve the Nation's ability to
use coal cleanly and efficiently. The program funds research and
development that strengthens the technology base industry uses in
developing new products and processes to support these national goals.
Fossil Energy R&D supports activities ranging from early concept
research in universities and national laboratories to applied R&D and
proof-of-concept projects in private-sector firms.

President's Coal Research Initiative.--The budget assumes that,
following the merger with the Clean Coal Technology account in 2003, all
DOE coal research activities are now carried out in the Fossil Energy
R&D account as part of the Clean Coal Power initiative. Should funds be
de-obligated from any pre-existing projects, these funds can be made
available for new projects under this initiative. The Department will
continue to increase involvement of the private sector and academia to
help conduct and direct research toward the most critical barriers to
expansion of coal use for power generation in the United States. This
cooperative effort will require industry to share in the cost of
research work, with the industry share increasing as technologies
approach commercial stages. Technologies will be selected with the goal
of accelerating development and deployment of coal technologies that
will economically meet environmental standards, while increasing the
efficiency and reliability of coal power plants. The coal R&D program
will focus on addressing the energy and environmental demands of the
post-2000 domestic market, and includes three elements: (1) Central
systems, which includes the technologies for advanced coal-fueled power
systems, and innovations for existing plants; (2) Sequestration R&D,
which focuses on greenhouse gas capture and reduction; and (3) Advanced
research, which, through early concept research, bridges fundamental
research and engineering development. The program goals of these
elements are integrated through the Vision 21 concept, aimed at doubling
the existing power plant efficiency with the flexibility to produce
high-value products from coal and other fuels while achieving near-zero
pollution and reducing energy costs.

As part of the program's Carbon Sequestration efforts, Fossil Energy
will contribute funding to a joint effort with the Office of Nuclear
Energy and the Office of Energy Efficiency and Renewable Energy called
the National Climate Change Technology Initiative Competitive
Solicitation Program. These funds will support competitive solicitations
to promote applied research that has as its primary goal the reduction
of greenhouse gas emissions or the sequestration of greenhouse gases.
Competitive awards will be made based on maximum emissions reduction
potential. The competitive solicitation program is a key component of
the president's national climate change technology initiative and is
intended to complement and enrich the existing research and development
portfolio of climate change related technologies. The technologies in
the existing portfolio may help reduce greenhouse gas emissions, but
have been selected for the portfolio with a variety of goals in mind,
not necessarily greenhouse gas reductions. This program is intended to
have technologies compete head to head, based on their ability to reduce
greenhouse gas in the atmosphere.

Other Power Systems.--Other Power Systems focuses on novel power
generation systems, distributed power generation systems including fuel
cell technology, and supporting technology for all power systems.

Oil and Gas.--The Oil and Gas programs will focus on supporting the
President's initiatives on Clear Skies, Climate Change, and Energy
Security. Activities include technology and analytical investments that
support the Administration's objectives to increase domestic production,
protect the environment, and build global alliances.

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

Environmental restoration.--The Department of Energy is managing the
environmental cleanup of former and present Fossil Energy project sites.
Activities include environmental protection, onsite cleanup, and cleanup
at several former offsite research and development locations in Wyoming
and Connecticut and environmental efforts at the National Energy
Technology Laboratory Morgantown and Pittsburgh sites, and the Albany
Research Center.

Import/Export Authorization.--This program will continue regulatory
reviews and oversight of the transmission of natural gas and electricity
across the U.S. borders.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 47 49 49
11.3 Other than full-time permanent.. 3 1 1
11.5 Other personnel compensation.... 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 51 51 51
12.1 Civilian personnel benefits....... 11 10 10
21.0 Travel and transportation of
persons......................... 2 3 3
23.3 Communications, utilities, and
miscellaneous charges........... 3 3 3

[[Page 377]]

25.1 Advisory and assistance services.. 55 49 49
25.2 Other services.................... 33 28 28
25.3 Other purchases of goods and
services from Government
accounts........................ 6 8 8
25.4 Operation and maintenance of
facilities...................... 53 42 42
25.5 Research and development contracts 231 318 319
26.0 Supplies and materials............ 9 7 7
32.0 Land and structures............... 14 3 3
41.0 Grants, subsidies, and
contributions................... 10 12 12
--------- --------- ----------
99.9 Total new obligations........... 478 534 535
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0213-0-1-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 670 771 771
---------------------------------------------------------------------------

Naval Petroleum and Oil Shale Reserves

For expenses necessary to carry out naval petroleum and oil shale
reserve activities, $16,500,000, to remain available until expended:
Provided, That, notwithstanding any other provision of law, unobligated
funds remaining from prior years shall be available for all naval
petroleum and oil shale reserve activities.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Naval Petroleum Reserves.......... 22 33 17
--------- --------- ----------
10.00 Total new obligations........... 22 33 17
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 17 12
22.00 New budget authority (gross)...... 17 21 17
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 34 33 17
23.95 Total new obligations............. -22 -33 -17
24.40 Unobligated balance carried
forward, end of year............ 12
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 17 21 17
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 18 18 33
73.10 Total new obligations............. 22 33 17
73.20 Total outlays (gross)............. -23 -18 -18
74.40 Obligated balance, end of year.... 18 33 32
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 11 13 11
86.93 Outlays from discretionary
balances........................ 12 5 7
--------- --------- ----------
87.00 Total outlays (gross)........... 23 18 18
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 17 21 17
90.00 Outlays........................... 23 18 18
---------------------------------------------------------------------------

The Naval Petroleum and Oil Shale Reserves has historically managed,
operated, maintained and produced the reserves to achieve the greatest
value and benefit to the Government. From FY 1976 through FY 2000, NPOSR
production activities generated a net income of $21 billion for the U.S.
Treasury. As a result of the National Defense Authorization Act for FY
1996, NPR-1 (Elk Hills) was sold to Occidental Petroleum Corporation and
all three naval oil shale reserves (NOSR) have been transferred outside
the Department. Administrative jurisdiction for NOSR-1 and NOSR-3 were
transferred to the Department of the Interior to be made available for
leasing. The third oil shale reserve, NOSR-2, was transferred to the Ute
Indian Tribe in January 2000 in accordance with the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001. The U.S.
retains a 9% royalty interest in the value of any oil, gas, other
hydrocarbons, and other minerals produced from the conveyed land, which
will be applied to costs for remediation of the uranium mill tailings
site near Moab, Utah. The most significant post-sale activity is the
settlement of ownership equity shares with the former unit partner in
the NPR-1 field, Chevron USA Inc. Geologic petroleum and reservoir
engineering services are required to prepare and support the
Government's equity position before an independent petroleum engineer
and the Assistant Secretary for Fossil Energy, who is to impartially
determine final equity shares. Each percentage point change in equity is
worth millions of dollars to the Government. The FY2004 budget request
supports activities for the two remaining Naval Petroleum Reserve
properties--Naval Petroleum Reserve Number 2 in California, and Naval
Petroleum Reserve Number 3 in Wyoming. The Elk Hills closeout work
includes reservoir engineering analysis to determine final equity
percentages; legal support for all sale-related issues; and
environmental remediation and cultural resource activities required as a
result of the sale agreement. Responsibilities for the other properties
include management and environmental compliance of the 17 NPR-2 leases;
operation and maintenance of NPR-3 field operations; and environmental
remediation of NPR-3. No funding is provided in FY2004 for the Rocky
Mountain Oilfield Testing Center.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 3 3 3
12.1 Civilian personnel benefits..... 1 1 1
25.1 Advisory and assistance services 8 10 8
25.2 Other services.................. 9 18 4
--------- --------- ----------
99.0 Direct obligations............ 21 32 16
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 22 33 17
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0219-0-1-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 29 32 32
---------------------------------------------------------------------------

Energy Conservation

For necessary expenses in carrying out energy conservation
activities, $875,793,000, to remain available until expended, of which
$9,500,000 shall be used to support research and development contracts
on technological approaches to reduce, avoid, or capture greenhouse gas
emissions, to be awarded pursuant to competitive solictations: Provided,
That $326,998,000 shall be for use in energy conservation grant programs
as defined in section 3008(3) of Public Law 99-509 (15 U.S.C. 4507):
Provided further, That notwithstanding section 3003(d)(2) of Public Law
99-509, such sums shall be allocated to the eligible programs as
follows: $288,200,000 for weatherization assistance grants and
$38,798,000 for State energy program grants.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Vehicle Technologies.............. 158
00.02 Fuel Cell Technologies............ 77

[[Page 378]]

00.03 Weatherization Assistance Program
Grants.......................... 288
00.04 State Energy Program Grants....... 39
00.05 State Energy Actvities............ 2
00.06 Gateway Deployment................ 28
00.07 Distributed Energy Resources...... 52
00.08 Building Technologies............. 53
00.09 Industrial Technologies........... 64
00.10 Biomass and Biorefinery Systems
R&D............................. 9
00.11 Federal Energy Management Program. 21
00.12 NCCTI Competitive Solicitation.... 20 9
00.13 Program Management................ 77
00.14 Building technology, State and
community programs--non-grant... 103 99
00.15 Building technology, State and
community programs -grants...... 275 317
00.16 Federal energy management......... 26 31
00.17 Industrial sector................. 139 140
00.19 Power sector...................... 64 64
00.20 Transportation sector............. 248 228
00.21 Policy and management............. 43 41
--------- --------- ----------
10.00 Total new obligations........... 898 940 877
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 24 28
22.00 New budget authority (gross)...... 897 913 877
22.10 Resources available from
recoveries of prior year
obligations..................... 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 925 940 877
23.95 Total new obligations............. -898 -940 -877
24.40 Unobligated balance carried
forward, end of year............ 28
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 913 912 876
41.00 Transferred to other accounts... -16
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 896 912 876
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 897 913 877
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 665 680 772
73.10 Total new obligations............. 898 940 877
73.20 Total outlays (gross)............. -879 -848 -900
73.45 Recoveries of prior year
obligations..................... -4
74.40 Obligated balance, end of year.... 680 772 749
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 270 275 264
86.93 Outlays from discretionary
balances........................ 609 573 636
--------- --------- ----------
87.00 Total outlays (gross)........... 879 848 900
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -1 -1 -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 896 912 876
90.00 Outlays........................... 878 847 899
----------------------------------------------------------------------------

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

The 2004 Budget proposes a major new initiative to accelerate the
worldwide availability and affordability of hydrogen-powered fuel cell
vehicles. The new FreedomFuel initiative will be a partnership with
energy companies focused on research to advance hydrogen production,
storage, and infrastructure. It complements the FreedomCAR partnership
with the auto industry announced last year, which is aimed at developing
viable hydrogen fuel cell vehicle technology.

Vehicle Technologies.--This program supports the FreedomCAR and 21st
Century Truck partnerships with industry. Program activities encompass a
suite of technologies, including lightweight materials, electronic power
control, high power storage, and hybrid electric drive motors. This
program also supports research specifically aimed at improving the
efficiency of energy conversion in advanced combustion engines and use
of cleaner, more available alternative fuels.

Fuel Cell Technologies.--This program supports the FreedomFuel and
FreedomCAR partnerships and stationary fuel cell applications. The
program develops fuel cell technologies that are more energy efficient,
cleaner, safer, reliable, durable and lower in cost. The long-term aim
is to accelerate progress toward an energy future for the Nation where
hydrogen fuel cells plays a significant role as an energy carrier in all
sectors of the economy and all regions of the country.

Weatherization and Intergovernmental.--The Weatherization and
Intergovernmental program funds activities that facilitate the movement
of energy efficient and renewable energy products into the marketplace.
Conservation grant programs.--The Weatherization Assistance
Program improves the energy efficiency of low-income homes by
providing technical assistance and formula grants to State and local
weatherization agencies. The State Energy Program provides financial
assistance to States through formula grants, enabling states to
individually tailor energy efficiency projects to local needs.

Gateway Deployment.--is an integrated activity designed to provide
technical and financial assistance to States and communities through
activities such as Rebuild America, Energy Efficiency Information and
Outreach, Building Codes Training and Assistance, Clean Cities, Energy
Star, and Inventions and Innovations.

Distributed Energy Resources.--This program funds research and
development to transform the current, electrical generation sector to a
smarter, more flexible and more efficient energy system through the
development and integration of distributed generation and combined heat
and power technologies.

Building Technologies.--In partnership with the buildings industry,
the program develops, promotes, and integrates energy technologies and
practices to make buildings more efficient and affordable and
communities more livable. The Building Technologies program accelerates
the availability of highly efficient buildings technologies and
practices through research and development; increases the minimum
efficiency of buildings and equipment through building codes, appliance
standards, and guidelines; and encourages the use of energy-efficient
and renewable energy technologies and practices in residential and
commercial buildings.

Industrial Technologies.--The program focuses on funding cost-shared
research in critical technology areas identified by industry. The
Industries of the Future (Specific) program encourages the most energy-
intensive industries to develop a strategic vision and a ``technology
roadmap'' to help achieve that vision. The Industries of the Future
(Crosscutting) program develops technologies that are useful to multiple
industries simultaneously, such as sensors and controls and advanced
industrial materials, which address a multitude of wear and corrosion
problems.

Biomass and Biorefinery Systems R&D.--This program was formed by
combining several activities under a single struc

[[Page 379]]

ture to achieve cost savings by focusing on a limited and coherent set
of goals and objectives while exploiting synergies. The program includes
the Agricultural Industries of the Future program, part of the Energy
Performance Sensors and Controls activity, and biopower/biofuels
activities funded under the Energy Supply account. The program focuses
on reducing processing energy requirements and production costs in
biomass processing plants and future integrated industrial
biorefineries.

Federal Energy Management Program.--This program reduces the cost
and environmental impact of the Federal government by advancing energy
efficiency and water conservation, promoting the use of renewable
energy, and managing utility costs in Federal facilities and operations.

National Climate Change Technology Initiative Competitive
Solicitation Program.--Supports competitive solicitations to promote
applied research that has as its primary goal the reduction of
greenhouse gas emissions or the sequestration of greenhouse gases.
Competitive awards will be made based on maximum emissions reduction
potential per dollar spent. The Competitive Solicitation Program is a
key component of the President's National Climate Change Technology
Initiative and is intended to complement and enrich the existing
research and development portfolio of climate change-related
technologies, which may help to reduce greenhouse gas emissions, but are
not necessarily designed to do so. Funding for this program is also
requested in the Fossil Energy account and Energy Supply account.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 36 36 36
11.3 Other than full-time permanent.. 1 1 1
11.5 Other personnel compensation.... 2 2 2
--------- --------- ----------
11.9 Total personnel compensation.. 39 39 39
12.1 Civilian personnel benefits....... 9 9 9
13.0 Benefits for former personnel..... 1
21.0 Travel and transportation of
persons......................... 3 3 3
23.1 Rental payments to GSA............ 2 3 3
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.1 Advisory and assistance services.. 40 40 40
25.2 Other services.................... 35 35 35
25.3 Other purchases of goods and
services from Government
accounts........................ 10 10 10
25.4 Operation and maintenance of
facilities...................... 267 245 181
25.5 Research and development contracts 34 34 34
26.0 Supplies and materials............ 1 1 1
31.0 Equipment......................... 4 4 4
41.0 Grants, subsidies, and
contributions................... 452 516 517
--------- --------- ----------
99.9 Total new obligations........... 898 940 877
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0215-0-1-272 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 441 443 439
---------------------------------------------------------------------------

Strategic Petroleum Reserve

For necessary expenses for Strategic Petroleum Reserve facility
development and operations and program management activities pursuant to
the Energy Policy and Conservation Act of 1975, as amended (42 U.S.C.
6201 et seq.), $175,081,000, to remain available until expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Storage facilities operations..... 173 177 158
00.02 Management........................ 17 15 17
--------- --------- ----------
10.00 Total new obligations........... 190 192 175
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 42 23
22.00 New budget authority (gross)...... 171 169 175
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 213 192 175
23.95 Total new obligations............. -190 -192 -175
24.40 Unobligated balance carried
forward, end of year............ 23
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 179 169 175
41.00 Transferred to other accounts... -8
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 171 169 175
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 61 87 110
73.10 Total new obligations............. 190 192 175
73.20 Total outlays (gross)............. -163 -168 -172
74.40 Obligated balance, end of year.... 87 110 113
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 94 93 96
86.93 Outlays from discretionary
balances........................ 69 75 76
--------- --------- ----------
87.00 Total outlays (gross)........... 163 168 172
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 171 169 175
90.00 Outlays........................... 163 168 172
----------------------------------------------------------------------------

The object of this program is to reduce the vulnerability of the
United States to energy supply disruptions by maintaining a crude oil
stockpile capable of rapid deployment at the direction of the President.
This program enables the President to meet the Nation's membership
commitments within the International Energy Agency's coordinated energy
emergency response plans and programs to deter the use of energy supply
disruptions and to take effective, co-ordinated action should such an
energy supply disruption occur.

The account provides for ongoing storage site operations and
maintenance activities, planning activities, drawdown testing/readiness
of the Reserve, planning studies, and program administration. Continuous
removal of excess gas from the SPR crude oil inventory will commence in
2004.

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

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0218-0-1-274 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 10 10 10
12.1 Civilian personnel benefits....... 2 2 3
21.0 Travel and transportation of
persons......................... 1 1 1
23.2 Rental payments to others......... 1 1 2
23.3 Communications, utilities, and
miscellaneous charges........... 3 2
25.1 Advisory and assistance services.. 2 2 2
25.2 Other services.................... 18 20 24
25.3 Other purchases of goods and
services from Government
accounts........................ 1 1 1
25.4 Operation and maintenance of
facilities...................... 152 155 130
--------- --------- ----------

[[Page 380]]

99.9 Total new obligations........... 190 192 175
---------------------------------------------------------------------------

Personnel Summary

SPR Petroleum Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0233-0-1-274 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program activity........... 2 7 3
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 2 7 3
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 9 7 11
22.00 New budget authority (gross)...... 11 -5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 9 18 6
23.95 Total new obligations............. -2 -7 -3
24.40 Unobligated balance carried
forward, end of year............ 7 11 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 11
41.00 Transferred to other accounts... -5
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 11 -5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 6 8 14
73.10 Total new obligations............. 2 7 3
73.20 Total outlays (gross)............. -1 -1 -1
74.40 Obligated balance, end of year.... 8 14 16
----------------------------------------------------------------------------

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

Net budget authority and outlays:
89.00 Budget authority.................. 11 -5
90.00 Outlays........................... 1 1 1
---------------------------------------------------------------------------

This account provides for the acquisition, transportation, and
injection of petroleum into the Strategic Petroleum Reserve. This
account funds all Strategic Petroleum Reserve petroleum inventory
acquisitions, associated transportation costs, U.S. Customs duties,
terminal throughput charges, incremental drawdown costs, and other
related miscellaneous costs. The Department of Energy was directed to
add approximately 108 million barrels of oil to the SPR using royalty
oil from federal offshore leases. Filling the SPR addresses the
President's initiative to enhance the energy security of the United
States by strengthening the nation's capability to respond to potential
oil supply disruptions. The FY 2003 request included $11.0 million in
the Petroleum Account for Royalty oil. Funding is not requested in the
FY 2004 budget for Royalty Oil due to a contractual change making
transportation charges for Royalty-In-Kind fill the responsibility of
the contractors.

Energy Information Administration

For necessary expenses in carrying out the activities of the Energy
Information Administration, $80,111,000, to remain available until
expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program activity........... 79 83 80
--------- --------- ----------
10.00 Total new obligations........... 79 83 80
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3 3
22.00 New budget authority (gross)...... 78 80 80
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 82 83 80
23.95 Total new obligations............. -79 -83 -80
24.40 Unobligated balance carried
forward, end of year............ 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 78 80 80
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 29 32 36
73.10 Total new obligations............. 79 83 80
73.20 Total outlays (gross)............. -76 -79 -80
74.40 Obligated balance, end of year.... 32 36 36
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 55 56 56
86.93 Outlays from discretionary
balances........................ 21 23 24
--------- --------- ----------
87.00 Total outlays (gross)........... 76 79 80
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 78 80 80
90.00 Outlays........................... 76 79 80
----------------------------------------------------------------------------

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

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 30 31 32
11.3 Other than full-time permanent.. 1 1 1
11.5 Other personnel compensation.... 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 32 33 34
12.1 Civilian personnel benefits....... 6 6 7

[[Page 381]]

25.1 Consulting services--non-
Government contracts............ 1 1 1
25.2 Other services--service contracts. 23 26 21
25.3 Purchases of goods and services
from Government accounts........ 8 8 8
25.4 Operation of GOCOs................ 1 1 1
26.0 Supplies and materials............ 8 8 8
--------- --------- ----------
99.9 Total new obligations........... 79 83 80
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0216-0-1-276 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 371 374 374
---------------------------------------------------------------------------

Economic Regulation

For necessary expenses in carrying out the activities of the Office
of Hearings and Appeals, $1,047,000, to remain available until expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program activity........... 2 1 1
--------- --------- ----------
10.00 Total new obligations........... 2 1 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 2 1 1
23.95 Total new obligations............. -2 -1 -1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 2 1 1
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 2 1 1
73.20 Total outlays (gross)............. -2 -1 -1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 1 1
----------------------------------------------------------------------------

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

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 1 1
25.3 Other purchases of goods and
services from Government
accounts...................... 1
--------- --------- ----------
99.0 Direct obligations............ 2 1
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 2 1 1
---------------------------------------------------------------------------

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

Hearings and appeals.--The Office of Hearings and Appeals issues all
final orders of an adjudicatory nature other than those over which the
Federal Energy Regulatory Commission or the Board of Contract Appeals
have jurisdiction. It decides any remaining petroleum enforcement
actions and administers refund proceedings involving funds derived from
such actions. This funding request is limited to expenses related to
petroleum overcharge cases.

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0217-0-1-276 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 11 8 2
---------------------------------------------------------------------------

Federal Energy Regulatory Commission

salaries and expenses

For necessary expenses of the Federal Energy Regulatory Commission
to carry out the provisions of the Department of Energy Organization Act
(42 U.S.C. 7101 et seq.), including services as authorized by 5 U.S.C.
3109, the hire of passenger motor vehicles, and official reception and
representation expenses (not to exceed $3,000), $199,400,000, to remain
available until expended: Provided, That notwithstanding any other
provision of law, not to exceed $199,400,000 of revenues from fees and
annual charges, and other services and collections in fiscal year 2004
shall be retained and used for necessary expenses in this account, and
shall remain available until expended: Provided further, That the sum
herein appropriated from the General Fund shall be reduced as revenues
are received during fiscal year 2004 so as to result in a final fiscal
year 2004 appropriation from the General Fund estimated at not more than
$0.

Program and Financing (in millions of dollars)

Obligations by program activity:
Reimbursable program:

09.01 Promote a secure, high-quality,
environmentally-responsible
energy infrastructure......... 100 99 103
09.02 Foster nationwide competitive
energy markets as a substitute
for traditional regulation.... 30 31 32
09.03 Protect customers and market
participants through vigilant
and fair oversight............ 23 30 31
09.04 Efficiently administer the
agency's resources to
accomplish the agency's goals. 38 32 33
--------- --------- ----------
09.99 Total reimbursable program...... 191 192 199
--------- --------- ----------
10.00 Total new obligations........... 191 192 199
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 8 2 2
22.00 New budget authority (gross)...... 184 192 199
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 192 194 201
23.95 Total new obligations............. -191 -192 -199
24.40 Unobligated balance carried
forward, end of year............ 2 2 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 184 192 199
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 26 31 30
73.10 Total new obligations............. 191 192 199
73.20 Total outlays (gross)............. -186 -192 -198
74.40 Obligated balance, end of year.... 31 30 33
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 160 164 169
86.93 Outlays from discretionary
balances........................ 26 28 29
--------- --------- ----------
87.00 Total outlays (gross)........... 186 192 198
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -184 -192 -199
----------------------------------------------------------------------------

[[Page 382]]

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

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority..................
99.01 Outlays...........................
---------------------------------------------------------------------------

The Federal Energy Regulatory Commission (Commission) regulates key
interstate aspects of the electric power, natural gas, oil pipeline, and
hydropower industries. The Commission chooses regulatory approaches that
foster competitive markets whenever possible, assures access to reliable
service at a reasonable price, and gives full and fair consideration to
environmental and community impacts in assessing the public interest of
energy projects. Regulated businesses pay fees and charges sufficient to
recover the Government's full costs of operations.

Energy Infrastructure.--The Commission must promote a secure, high
quality and environmentally responsible infrastructure through
consistent policies to meet market and operational demands. The
Commission determines just and reasonable rates for the interstate
transportation of natural gas and oil on the pipelines subject to the
Commission's jurisdiction and sets rates for the interstate transmission
and wholesale sales of electric energy. It approves rates for all
Federal power marketing administrations, but not for TVA. The Commission
also certifies three special classes of power generators: cogeneration
facilities, small power production facilities, and exempt wholesale
generators. Furthermore, the Commission authorizes tariff provisions, as
appropriate, to allow the gas and oil pipelines and public utilities to
adjust their services to meet their customers' needs and the utilities'
needs to meet competition in their markets. The Commission has and will
continue to develop creative and flexible pricing policies and new
incentive mechanisms to promote the development of the nation's electric
and gas infrastructures and support the competitive marketplace.

The Commission will continue to ensure that environmental concerns
involving energy projects are properly addressed and that the public
interest is protected when new hydropower projects are licensed or
relicensed and when new natural gas pipeline services are authorized.
The Commission issues preliminary permits, exemptions, licenses and
relicenses for non-federal hydroelectric projects, enforces their terms
and conditions, and performs dam safety inspections. It regulates over
1,660 hydroelectric projects, which supply about 5 percent of the
electric energy generated in the United States. The Commission
investigates to determine the amount of headwater benefits derived from
federally owned and FERC-licensed headwater improvements, collects this
amount from licensees, and returns it to the U.S. Treasury. The
Commission also issues certificates authorizing natural gas pipelines to
construct and operate new facilities and to provide new services.

In FY 2002, the Commission held several conferences on the security
and other emergency issues of liquefied natural gas shipments, river
crossing facilities, and other infrastructure, and engaged in ongoing
discussions with the Departments of Transportation and Energy regarding
safety and security matters. The Commission also created an
infrastructure policy group for the express purpose of identifying
present infrastructure conditions, needs, investment and other barriers
to expansion, and environmental and landowner concerns.

Competitive Energy Markets.--The Commission fosters nationwide
competitive energy markets in addition to continuing to regulate
transmission providers subject to its jurisdiction. Since enactment of
the Energy Policy Act of 1992, the Commission has introduced a number of
initiatives to foster wholesale competition in the generation sector of
the electric utility industry. In 1996, the Commission issued Order Nos.
888 and 889, which require all jurisdictional public utilities to
provide open access transmission service to all wholesale customers
under standard terms and conditions. At the end of 1999, the Commission
issued Order No. 2000, which called on utilities to voluntarily form
regional transmission organizations (RTOs), with Commission approval, to
facilitate the efficient exchange of electricity over large regions of
the country.

Much was accomplished in establishing RTOs by the end of calendar
year 2002. The Midwest Independent System Operator, Inc. (Midwest ISO)
was approved by the Commission as an RTO in December 2001 and commenced
operations in February 2002 in all or parts of several Midwestern states
and one Canadian province. The Southwest Power Pool (SPP) has proposed
to join the Midwest ISO. The Pennsylvania-New Jersey-Maryland
Interconnection (PJM), which was granted RTO status in December 2002, is
working with the Midwest ISO and SPP to create a joint and common market
that will span from the Atlantic Ocean to the Rocky Mountains. Finally,
the Commission (1) approved essential parts of SeTrans RTO, which would
extend over eight Southeastern states; (2) gave preliminary approval to
WestConnect RTO, which would operate in parts of the Desert Southwest
states of Arizona, Colorado, New Mexico and Utah, and (3) approved key
aspects of the RTO West proposal, which includes all, or part of, eight
Pacific Northwest states.

In July 2002, the Commission proposed for public comment a new rule
to adopt a standard design for electric power markets using the best
practices from around the country and the world. The intent of the
standard market design proposal is to build on existing RTO formation
efforts and to allow regional variation in appropriate aspects of market
design. Standardized business rules and practices will maximize market
efficiency, ease market entry, and transactions costs.

Market Oversight.--The Commission must protect customers and market
participants through vigilant and fair oversight of the transitioning
energy markets. The Commission will strengthen the role of RTO market
monitoring units and will count on them as the first line of defense
against problems. The Commission will ensure procompetitive market
structures by identifying and remedying problems, assessing market and
infrastructure conditions against objective benchmarks, and periodically
reviewing and revising market rules for sustained, long-term development
of energy markets. To this end, the Commission will publish a Seasonal
Market Assessment for the summer cooling season and again for the winter
heating season. This will allow for correction of major potential
problems in the markets before they become serious. The Commission will
also issue an annual State of the Markets Report, to review overall
market performance for both natural gas and electricity and highlight
longer term issues. In addition, the Commission will continue to ensure
that mergers and consolidations are consistent with pro-competitive
goals. The Commission will detect abuses of market power quickly and use
prohibitions and penalties as necessary to remove, prevent, and deter
abuses. The Commission will conduct investigations as warranted and act
on complaints, using litigation before administrative law judges as
necessary.

Resource Management.--Efficient management of resources facilitates
accomplishing the Commission's regulatory mission. Resource management
includes human resources manage

[[Page 383]]

ment and development, financial management, including budget formulation
and execution, strategic and business planning, and procurement,
information technology, and external communications.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0212-0-1-276 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
99.0 Reimbursable obligations:
Reimbursable obligations........ 191 192 199
--------- --------- ----------
99.9 Total new obligations........... 191 192 199
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0212-0-1-276 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 1,188 1,250 1,250
---------------------------------------------------------------------------

Clean Coal Technology

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Clean Coal Technology............. 32
--------- --------- ----------
10.00 Total new obligations........... 32
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 237 214
22.00 New budget authority (net)........ 42 40
22.21 Unobligated balance transferred to
other accounts.................. -34 -254
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 245
23.95 Total new obligations............. -32
24.40 Unobligated balance carried
forward, end of year............ 214
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance deferred to
future years.................. -40
55.00 Funds becoming available from
prior year deferrals.......... 82 40
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 42 40
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 240 234
73.10 Total new obligations............. 32
73.20 Total outlays (gross)............. -37
73.31 Obligated balance transferred to
other accounts.................. -234
74.40 Obligated balance, end of year.... 234
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 37
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 42 40
90.00 Outlays........................... 37
---------------------------------------------------------------------------

Remaining funds were proposed for transfer in the FY 2003 request.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0235-0-1-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 6
12.1 Civilian personnel benefits....... 1
25.1 Advisory and assistance services.. 2
25.2 Other services.................... 6
25.4 Operation and maintenance of
facilities...................... 1
25.5 Research and development contracts 16
--------- --------- ----------
99.9 Total new obligations........... 32
---------------------------------------------------------------------------

Personnel Summary

Alternative Fuels Production

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5180-0-2-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2
22.00 New budget authority (gross)...... -2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation......
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance rescinded... -2
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 9 9 9
74.40 Obligated balance, end of year.... 9 9 9
----------------------------------------------------------------------------

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

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

Upon default of the borrower in 1985 under a Federal loan guarantee,
the Department acquired ownership of the Great Plains plant by
foreclosure. On October 31, 1988, the Department completed an asset
purchase agreement of the Great Plains Gasification Plant by Dakota
Gasification Company (DGC).

Negotiated settlement agreements dated February 16, 1994, resolved
all past disputes as well as restructured the Gas Purchase Agreements
pricing provisions. In a separate agreement with DOE, DGC agreed to pay
DOE $25 million over the 7 year period of time DGC receives the demand
payments from the pipeline companies.

Funds in this account are used to pay for expenses and
responsibilities related to the Department's prior operation of the
Great Plains Coal Gasification Project and the administration of the
Asset Purchase Agreement which transferred the facility to the private
sector. During FY 2002, the largest costs were for technical analysis to
determine the reduction in net synthetic natural gas production at the
Great Plains Synfuels Plant caused by the operation of an Anhydrous
Ammonia Synthesis Plant within the larger gasification facility, and its
effect on revenues. Remaining outstanding obligations are for carrying
out contractual obligations to the termination of the contract in 2009.
The Federal revenue sharing receipts are based on this review and
analysis.

In FY 2002, the Department of Energy received $12.8 million in
revenue sharing payments from Dakota Gasification Company. The $12.8
million was returned by the Department of Energy to the Treasury as
Miscellaneous Receipts. Future revenue sharing payments to the
Department are dependent upon natural gas prices.

Elk Hills School Lands Fund

For necessary expenses in fulfilling installment payments under the
Settlement Agreement entered into by the United States and the State of
California on October 11, 1996, as authorized by section 3415 of Public
Law 104-106, $36,000,000, for payment to the State of

[[Page 384]]

California for the State Teachers' Retirement Fund from the Elk Hills
School Lands Fund.

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5428-0-2-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 226 190 118
Appropriations:
05.00 Elk Hills school lands fund....... -36 -72 -36
--------- --------- ----------
05.99 Total appropriations............ -36 -72 -36
--------- --------- ----------
07.99 Balance, end of year.............. 190 118 82
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Elk Hills school lands fund....... 36 72 36
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 36 72 36
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 36 72 36
23.95 Total new obligations............. -36 -72 -36
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... 36 36
55.20 Advance appropriation (special
fund)......................... 36 36
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 36 72 36
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 36 72 36
73.20 Total outlays (gross)............. -36 -72 -36
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 36 72 36
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 36 72 36
90.00 Outlays........................... 36 72 36
---------------------------------------------------------------------------

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

Section 3415 of the Act required, among other things, that the
Department make an offer of settlement based on the fair value of the
State of California's longstanding claims to two parcels of land
(``school lands'') within the Reserve. Under the Act, nine percent of
the net proceeds were reserved in contingent fund in the Treasury for
payment to the State. In compliance with the Act and in order to remove
any cloud over title which could diminish the sales value of the
Reserve, the Department entered into a settlement agreement with the
State on October 11, 1996. That agreement calls for payment to the
State, subject to appropriations, of nine percent of the net proceeds of
sale, payable over a seven-year period (without interest), commencing in
1999. Under the settlement agreement and provided that funds are
appropriated, the first five installments are for $36 million each year,
and the remaining balance is to be paid in two equal installments in
years six and seven. The budget requests $36 million in 2004 for the
sixth installment payment.

Arctic National Wildlife Refuge, Alternative Energy

(Legislative proposal, subject to PAYGO)

The budget includes a proposal to use the Federal share of bonus
bids from opening a small portion of the Arctic National Wildlife Refuge
to oil and gas exploration to supplement the funding for renewable and
related energy research. The budget assumes that 1.2 billion of the
bonus bids that would come to the Federal Government in 2005 would be
spent on alternative and renewable energy resources programs over a
period of seven years.

Payments to States under Federal Power Act

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5105-0-2-806 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............
Receipts:
02.00 Licenses under Federal Power Act
from public lands and national
forests, p...................... 3 3 3
Appropriations:
05.00 Payments to States under Federal
Power Act....................... -3 -3 -3
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

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

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 3 3 3
23.95 Total new obligations............. -3 -3 -3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.20 Appropriation (special fund).... 3 3 3
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 3 3 3
73.10 Total new obligations............. 3 3 3
73.20 Total outlays (gross)............. -3 -3 -3
74.40 Obligated balance, end of year.... 3 3 3
----------------------------------------------------------------------------

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

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

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

Northeast Home Heating Oil Reserve

For necessary expenses for Northeast Home Heating Oil Reserve
storage, operations, and management activities pursuant to the Energy
Policy and Conservation Act of 2000, $5,000,000, to remain available
until expended.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5369-0-2-274 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Northeast home heating oil reserve 5 10 10
--------- --------- ----------

[[Page 385]]

10.00 Total new obligations (object
class 25.2)................... 5 10 10
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4 7 5
22.00 New budget authority (gross)...... 8 8 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 12 15 10
23.95 Total new obligations............. -5 -10 -10
24.40 Unobligated balance carried
forward, end of year............ 7 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 8 5
42.00 Transferred from other accounts. 8
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 8 8 5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 4 5 7
73.10 Total new obligations............. 5 10 10
73.20 Total outlays (gross)............. -5 -8 -5
74.40 Obligated balance, end of year.... 5 7 10
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3 4 5
86.93 Outlays from discretionary
balances........................ 2 4
--------- --------- ----------
87.00 Total outlays (gross)........... 5 8 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 8 8 5
90.00 Outlays........................... 5 8 5
---------------------------------------------------------------------------

On July 10, 2000, the President directed the Department of Energy to
establish a 2-million barrel home heating oil reserve in the Northeast
capable of assuring home heating oil supply for the Northeast states
during times of very low inventories and significant threats to
immediate further supply. Two million barrels provide Northeast
consumers adequate supplies for approximately 10 days, the time required
for ships to carry heating oil from the Gulf of Mexico to New York
Harbor for distribution.

On March 6, 2001, Secretary Spencer Abraham announced the
establishment of the reserve as a permanent part of America's energy
readiness effort, separate from the Strategic Petroleum Reserve. The
original storage contracts were re-competed in the Spring of 2002 and
contracts were awarded in New York Harbor, New Haven, Connecticut and
Rhode Island. The 2004 Budget provides $5 million to continue leasing
commercial storage space and provides for administrative support from
the Defense Energy Support Center (DESC).

Nuclear Waste Disposal

For nuclear waste disposal activities to carry out the purposes of
Public Law 97-425, as amended, including the acquisition of real
property or facility construction or expansion, $161,000,000, to remain
available until expended and to be derived from the Nuclear Waste Fund:
Provided, That none of the funds herein appropriated may be: (1) used
directly or indirectly to influence legislative action on any matter
pending before Congress or a State legislature or for lobbying activity
as provided in 18 U.S.C. 1913; (2) used for litigation expenses; or (3)
used to support multi-State efforts or other coalition building
activities: Provided further, That all proceeds and recoveries realized
by the Secretary in carrying out activities authorized by the Nuclear
Waste Policy Act of 1982, Public Law 97-425, as amended, including but
not limited to, any proceeds from the sale of assets, shall be available
without further appropriation and shall remain available until expended.

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5227-0-2-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 10,849 13,041 14,205
Receipts:
02.20 Receipts from nuclear powered
electric utilities.............. 712 736 743
02.40 Net earnings on investments....... 1,598 732 794
02.80 Offsetting collections, Nuclear
Waste Disposal.................. 1
--------- --------- ----------
02.99 Total receipts and collections.. 2,311 1,468 1,537
--------- --------- ----------
04.00 Total: Balances and collections... 13,160 14,509 15,742
Appropriations:
05.00 Nuclear waste disposal............ -96 -276 -161
05.01 Nuclear Waste Technical Review
Board........................... -23 -25 -33
05.02 Nuclear Regulatory Commission..... -3 -3
--------- --------- ----------
05.99 Total appropriations............ -119 -304 -197
--------- --------- ----------
07.99 Balance, end of year.............. 13,041 14,205 15,545
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Nuclear waste disposal fund....... 39 222 88
00.02 Program direction................. 56 63 73
--------- --------- ----------
10.00 Total new obligations........... 95 285 161
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 8 9
22.00 New budget authority (gross)...... 95 276 161
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 103 285 161
23.95 Total new obligations............. -95 -285 -161
24.40 Unobligated balance carried
forward, end of year............ 9
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... 95 276 161
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 95 276 161
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 87 74 174
73.10 Total new obligations............. 95 285 161
73.20 Total outlays (gross)............. -107 -185 -219
74.40 Obligated balance, end of year.... 74 174 116
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 47 138 81
86.93 Outlays from discretionary
balances........................ 60 47 138
--------- --------- ----------
87.00 Total outlays (gross)........... 107 185 219
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 94 276 161
90.00 Outlays........................... 106 185 219
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 21,060 23,421 26,396
92.02 Total investments, end of year:
Federal securities: Par value... 23,421 26,396 29,425
----------------------------------------------------------------------------

Because of the long-term nature of the project, the need to ensure
the territorial integrity, security, and isolation of the site, and in
satisfaction of Nuclear Regulatory Commission licensing requirements,
the Administration plans to submit a proposal to withdraw permanently
from settlement, sale, location, or entry under some or all of the
general land laws, certain lands comprising and contiguous to the Yucca
Mountain geologic repository operations area.

[[Page 386]]

Growing quantities of spent nuclear fuel and high-level radioactive
waste have been accumulating at commercial nuclear reactor sites and
storage facilities across the country for half a century. They come from
nuclear plants generating commercial electric power, nuclear weapons
production, the operation of naval reactors, and Federal research and
development activities. At Congress's direction, DOE has investigated
the suitability of a storage site at Yucca Mountain, Nevada, 100 miles
northwest of Las Vegas, for over 20 years. Based on sound science and
compelling national interests, the President signed House Joint
Resolution 87 approving the site at Yucca Mountain, Nevada for
development as a geologic repository for the Nation's nuclear waste. The
budget provides sufficient funding for DOE to prepare a license
application to meet its plan for receipt of nuclear waste at the
repository beginning in 2010. The Administration also will seek
additional funding to begin essential transportation-related activities
and provide a long-term management and financing plan for the entire
licensing and construction effort. The Administration is committed to
ensuring the environmentally sound and safe disposal of the Nation's
radioactive waste.

In 2002, actual interest earnings were $1,598 million, and they are
estimated to decline to $731 million in 2003 and $794 million in 2004.
The reason for the decline is that the decrease in market interest rates
in 2002 significantly increased the market value of the zero-coupon
bonds held by the fund, and the interest earnings on these bonds is
calculated as the change in market value. In 2002 and 2003, interest
earnings are projected based on the effective yield method, instead of
estimating the change in market value. We use the effective yield
approach, because interest rates are impossible to predict accurately
and because it is a simple method of projecting what will happen in the
future ``on average.'' The effective yield method is consistent with a
small increase in market value.

Status of Funds (in millions of dollars)

0101 Par value....................... 21,060 23,421 26,396
0102 Unrealized discounts............ -10,099 -10,283 -12,010
--------- --------- ----------
0199 Total balance, start of year.... 10,951 13,132 14,386
Cash income during the year:
Current law:

Offsetting receipts
(proprietary):
1220 Nuclear waste disposal fund ,
Energy...................... 712 736 743
Offsetting receipts
(intragovernmental):
1240 Earnings on investments,
Nuclear waste disposal fund
, Energy.................... 1,598 732 794
Offsetting collections:
1280 Offsetting collections........ 1
--------- --------- ----------
1299 Income under present law...... 2,311 1,468 1,537
Cash outgo during year:
Current law:

4500 Nuclear waste disposal fund..... -107 -185 -219
4501 Nuclear Regulatory Commission... -23 -24 -33
4502 Nuclear Waste Technical Review
Board......................... -3 -3 -3
--------- --------- ----------
4599 Outgo under current law (-)... -133 -212 -255
Unexpended balance, end of year:
8700 Uninvested balance................ -6
Federal securities:

8701 Par value....................... 23,421 26,396 15,668
8702 Unrealized discounts............ -10,283 -12,010 -13,764
--------- --------- ----------
8799 Total balance, end of year...... 13,132 14,386 15,668
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 16 20 20
11.3 Other than full-time permanent.. 1 3 2
11.5 Other personnel compensation.... 1 3 2
--------- --------- ----------
11.9 Total personnel compensation.. 18 26 24
12.1 Civilian personnel benefits....... 4 12 7
21.0 Travel and transportation of
persons......................... 1 3 2
23.2 Rental payments to others......... 1 3 2
25.1 Advisory and assistance services.. 32 92 52
25.2 Other services.................... 2 6 3
25.3 Other purchases of goods and
services from Government
accounts........................ 2 6 3
25.4 Operation and maintenance of
facilities...................... 23 102 48
31.0 Equipment......................... 4 12 7
41.0 Grants, subsidies, and
contributions................... 8 23 13
--------- --------- ----------
99.9 Total new obligations........... 95 285 161
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-5227-0-2-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 181 211 215
---------------------------------------------------------------------------

Uranium Enrichment Decontamination and Decommissioning Fund

For necessary expenses in carrying out uranium enrichment facility
decontamination and decommissioning, remedial actions, and other
activities of title II of the Atomic Energy Act of 1954 and title X,
subtitle A, of the Energy Policy Act of 1992, $418,124,000, to be
derived from the Fund, to remain available until expended, of which
$51,000,000 shall be available in accordance with title X, subtitle A,
of the Energy Policy Act of 1992.

Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuning resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5231-0-2-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 2,374 2,833 3,364
Receipts:
02.00 Assessments....................... 186 189 194
02.40 Earnings on investments........... 153 136 154
02.41 General fund payment.............. 420 442 452
--------- --------- ----------
02.99 Total receipts and collections.. 759 767 800
--------- --------- ----------
04.00 Total: Balances and collections... 3,133 3,600 4,164
Appropriations:
05.00 Uranium enrichment decontamination
and decommissioning fund........ -300 -236 -418
--------- --------- ----------
07.99 Balance, end of year.............. 2,833 3,364 3,746
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Uranium Enrichment D&D Fund....... 418
--------- --------- ----------
10.00 Total new obligations........... 418
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 418
23.95 Total new obligations............. -418
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... 300 236 418
41.00 Transferred to other accounts... -300 -236
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 418
----------------------------------------------------------------------------

[[Page 387]]

Change in obligated balances:
72.40 Obligated balance, start of year.. 3
73.10 Total new obligations............. 418
73.20 Total outlays (gross)............. -3 -293
74.40 Obligated balance, end of year.... 125
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 293
86.93 Outlays from discretionary
balances........................ 3
--------- --------- ----------
87.00 Total outlays (gross)........... 3 293
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 418
90.00 Outlays........................... 3 293
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 2,556 2,987 3,491
92.02 Total investments, end of year:
Federal securities: Par value... 2,987 3,491 3,884
---------------------------------------------------------------------------

Uranium Enrichment D&D Fund.--Funds projects to maintain,
decontaminate, decommission and otherwise remediate the gaseous
diffusion plants at Portsmouth, Paducah, and Oak Ridge. In addition,
Uranium/Thorium Licensee Reimbursement program activities are funded
within this appropriation.

Status of Funds (in millions of dollars)

0101 Par value....................... 2,556 2,987 3,491
0102 Unrealized discounts............ -35 -35 -40
--------- --------- ----------
0199 Total balance, start of year.... 2,523 2,963 3,451
Cash income during the year:
Current law:

Receipts:
1200 Assessments, Decontamination
and Decommissioning Fund.... 186 189 194
Offsetting receipts
(intragovernmental):
1240 Earnings on investments,
Decontamination and
Decommissioning Fund........ 153 136 154
1241 General fund payment--Defense,
Decontamination and
Decommissioning Fund........ 420 442 452
--------- --------- ----------
1299 Income under present law...... 759 767 800
Cash outgo during year:
Current law:

4500 Uranium enrichment
decontamination and
decommissioning fund.......... -3 -293
4501 Uranium facilities maintenance
and remediation............... -316 -279 -74
--------- --------- ----------
4599 Outgo under current law (-)... -319 -279 -367
Unexpended balance, end of year:
8700 Uninvested balance................ 11
Federal securities:

8701 Par value....................... 2,987 3,491 3,884
8702 Unrealized discounts............ -35 -40
--------- --------- ----------
8799 Total balance, end of year...... 2,963 3,451 3,884
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

Public enterprise funds:

Isotope Production and Distribution Program Fund

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Isotope production and
distribution.................... 21 20 35
09.02 Isotope production facility
project......................... 2 2
--------- --------- ----------
10.00 Total new obligations........... 23 22 35
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5 8 8
22.00 New budget authority (gross)...... 26 22 35
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 31 30 43
23.95 Total new obligations............. -23 -22 -35
24.40 Unobligated balance carried
forward, end of year............ 8 8 8
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 26 22 35
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 9 8 8
73.10 Total new obligations............. 23 22 35
73.20 Total outlays (gross)............. -24 -22 -35
74.40 Obligated balance, end of year.... 8 8 8
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 24 22 35
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources--Expenditure
transfers................... -17 -14 -26
88.40 Non-Federal sources........... -9 -8 -9
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -26 -22 -35
----------------------------------------------------------------------------

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

The charter of the Department of Energy (DOE) isotope production and
distribution program covers the production and sale of radioactive and
stable isotopes, associated byproducts, surplus materials such as
lithium and helium, and related isotope services to the use community
utilizing Government-owned facilities. Services include, but are not
limited to, irradiation services, target preparation and processing,
source encapsulation and other special preparations, analyses, chemical
separations, and the lease of stable isotopes for research purposes. The
isotopes are priced to recover their production cost.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-4180-0-3-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 3 3 3
25.4 Operation and maintenance of
facilities...................... 17 16 29
32.0 Land and structures............... 3 3 3
--------- --------- ----------
99.9 Total new obligations........... 23 22 35
---------------------------------------------------------------------------

Trust Funds

Advances for Cooperative Work

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-8575-0-7-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 5 5 5

[[Page 388]]

74.40 Obligated balance, end of year.... 5 5 5
----------------------------------------------------------------------------

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

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

POWER MARKETING ADMINISTRATIONS

Federal Funds

General and special funds:

Operation and Maintenance, Alaska Power Administration

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0304-0-1-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1 1 1
74.40 Obligated balance, end of year.... 1 1 1
----------------------------------------------------------------------------

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

The Alaska Power Administration (APA) was created in 1967 by the
Secretary of the Interior to assume the functions of the Bureau of
Reclamation in Alaska--the operations, maintenance, transmission, and
power marketing of the two Federal hydroelectric projects (Eklutna and
Snettisham), and the investigation of future water and power development
programs.

The Alaska Power Administration Asset Sale and Termination Act
(Public Law 104-58), signed into law on November 28, 1995, authorizes
and directs the sale of all Alaska Power Administration assets and the
subsequent termination of APA. The Eklutna project was sold on October
2, 1997, for a cash payment of $5,953,000. The Snettisham project was
sold on August 18, 1998, for $81,966,177.

All remaining Alaska activities of APA, including the Juneau
headquarters office, were terminated on September 30, 1998. Unobligated
transition and termination balances were used to complete remaining
close-out activities and report preparation in Washington, D.C. in 1999.

Operation and Maintenance, Southeastern Power Administration

For necessary expenses of operation and maintenance of power
transmission facilities and of marketing electric power and energy,
including transmission wheeling and ancillary services, pursuant to the
provisions of section 5 of the Flood Control Act of 1944 (16 U.S.C.
825s), as applied to the southeastern power area, $5,100,000, to remain
available until expended; in addition, $16,000,000 shall be credited to
this account as customer advances, to remain available until expended
for the sole purpose of making purchase power and wheeling expenditures.

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Program direction............... 5 5 5
Reimbursable program:

09.01 Purchase power and wheeling..... 34 20 15
09.02 Customer advances............... 14 16
--------- --------- ----------
10.00 Total new obligations........... 39 39 36
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 39 39 36
23.95 Total new obligations............. -39 -39 -36
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 5 5 5
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash)-Purchase
Power and Wheeling.............. 34 34 31
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 39 39 36
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1 1 1
73.10 Total new obligations............. 39 39 36
73.20 Total outlays (gross)............. -39 -39 -36
74.40 Obligated balance, end of year.... 1 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 39 39 36
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources-
Purchase Power and Wheeling
Offsetting Collections........ -34 -34 -31
----------------------------------------------------------------------------

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

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

Southeastern sells wholesale power primarily to publicly and
cooperatively-owned electric distribution utilities. Southeastern does
not own or operate any transmission facilities. Its long-term contracts
provide for periodic electric rate adjustments to ensure that the
Federal Government recovers costs of operation and capital invested in
power, with interest, in keeping with statutory requirements.

Program direction.--Provision is made for negotiation and
administration of transmission and power contracts, collection of
revenues, development of wholesale power rates, the amortization of
power investment, energy efficiency and competitiveness program,
investigation and planning of proposed water resources projects,
scheduling and dispatch of power generation, scheduling storage and
release of water, administration of contractual operation requirements,
and determination of methods of operating generating plants individually
and in coordination with others to obtain maximum utilization of
resources.

Use of receipts for Corps O&M funding.--In FY 2004, the
Administration proposes to fund U.S. Army Corps of Engineers' power
related operation and maintenance costs in Southeastern's service area
from Southeastern receipts derived from the sale of power. Proprietary
receipts estimated for FY 2004 are decreased to reflect implementation
of this proposal.

Purchase power and wheeling.--Between 2001 and 2004, the
Southeastern Power Administration will phase-out Fed

[[Page 389]]

eral financing of purchase power and wheeling activities. Authority to
spend power revenues to pay for purchase of power and wheeling
activities will end after 2004. Industry restructuring and resulting
competition now make it attractive for Southeastern's customers to shop
for power and transmission services. Southeastern may continue to
support customer bill crediting, net billing and other alternative
financing arrangements for these activities.

Based on Administration policy, the Southeastern Power
Administration will set rates consistent with current law to recover the
full cost of the Civil Service Retirement System and post-retirement
health benefits for its employees.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 3 3 3
25.2 Other services.................. 2 2 2
--------- --------- ----------
99.0 Direct obligations............ 5 5 5
99.0 Reimbursable obligations.......... 34 34 31
--------- --------- ----------
99.9 Total new obligations........... 39 39 36
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0302-0-1-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 42 40 42
---------------------------------------------------------------------------

Continuing Fund, Southeastern Power Administration

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5653-0-2-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............
Receipts:
02.20 Deposits from sale and
transmission of electric energy,
Southeastern Power.............. 10
Appropriations:
05.00 Continuing fund, Southeastern
Power Administration............ -10
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Continuing fund, Southeastern
Power Administration............ 10
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 10
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 10
23.95 Total new obligations............. -10
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.20 Appropriation (special fund).... 10
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 5 6
73.10 Total new obligations............. 10
73.20 Total outlays (gross)............. -8 -6
74.40 Obligated balance, end of year.... 6
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 8 6
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 10
90.00 Outlays........................... 8 6
---------------------------------------------------------------------------

A continuing fund of $50,000, maintained from receipts from the sale
and transmission of electric power in the southeastern area, is
available to defray expenses necessary to ensure continuity of service
(16 U.S.C. 825s-2). The fund was activated during fiscal year 2002 to
finance power purchases associated with below normal hydropower
generation due to drought.

Operation and Maintenance, Southwestern Power Administration

For necessary expenses of operation and maintenance of power
transmission facilities and of marketing electric power and energy, for
construction and acquisition of transmission lines, substations and
appurtenant facilities, and for administrative expenses, including
official reception and representation expenses in an amount not to
exceed $1,500 in carrying out the provisions of section 5 of the Flood
Control Act of 1944 (16 U.S.C. 825s), as applied to the southwestern
power area, $28,600,000, to remain available until expended; in
addition, notwithstanding 31 U.S.C. 3302, beginning in fiscal year 2004
and thereafter, such funds as are received by the Southwestern Power
Administration from any State, municipality, corporation, association,
firm, district, or individual as advance payment for work that is
associated with Southwestern's transmission facilities, consistent with
that authorized in section 5 of the Flood Control Act, shall be credited
to this account and be available until expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 System operation & maintenance.. 3 4 5
00.03 Construction.................... 6 6 5
00.04 Program direction............... 19 17 19
--------- --------- ----------
02.93 Direct program subtotal......... 28 27 29
Reimbursable program:

09.10 Reimbursable activities......... 5 8 8
09.20 Customer advances............... 5 16 13
--------- --------- ----------
09.99 Total reimbursable program...... 10 24 21
--------- --------- ----------
10.00 Total new obligations........... 38 51 50
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 38 51 50
23.95 Total new obligations............. -38 -51 -50
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 28 27 29
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 11 24 21
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... -1
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 10 24 21
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 38 51 50
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 11 15 15
73.10 Total new obligations............. 38 51 50
73.20 Total outlays (gross)............. -34 -52 -49
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 1
74.40 Obligated balance, end of year.... 15 15 15
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 25 41 39
86.93 Outlays from discretionary
balances........................ 9 11 10
--------- --------- ----------
87.00 Total outlays (gross)........... 34 52 49
----------------------------------------------------------------------------

[[Page 390]]

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -7 -8 -8
88.40 Non-Federal sources........... -4 -16 -13
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -11 -24 -21
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 28 27 29
90.00 Outlays........................... 24 28 28
----------------------------------------------------------------------------

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

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

Program direction.--This activity provides for program costs related
to the operation, maintenance, and support functions of the power system
and includes salaries and benefits, travel, support services, rent,
communications, and other related expenses.

Systems operation and maintenance.--Provision is made for
engineering assessments of issues and alternatives that could adversely
impact or optimize the operation of Southwestern's hydroelectric
resources. Provision is also made for maintenance and replacements of
transmission system facilities to ensure reliable service, negotiation
and administration of power contracts, collection of revenue,
development of wholesale power rates and the depreciation of the power
investment.

Purchase power and wheeling.--Between 2001 and 2004, the
Southwestern Power Administration will phase-out Federal financing of
purchase power and wheeling activities. Authority to spend power
revenues to pay for purchase of power and wheeling activities will end
after 2004. Industry restructuring and resulting competition now make it
attractive for Southwestern's customers to shop for power and
transmission services. Southwestern may continue to support customer
bill crediting, net billing and other alternative financing arrangements
for these activities.

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

Reimbursable program.--This program involves services provided by
Southwestern Power Administration to others under various types of
reimbursable arrangements. In FY 2004 and thereafter, Southwestern
proposes to continue acceptance of advance funding from non-Federal
entities for work related to activities authorized under the Flood
Control Act of 1944.

Use of receipts for Corps O&M funding.--In FY 2004, the
Administration proposes to fund U.S. Army Corps of Engineers' power
related operation and maintenance costs in Southwestern's service area
from Southwestern receipts derived from the sale of power. Proprietary
receipts estimated for FY 2004 are decreased to reflect implementation
of this proposal.

Based on Administration policy the Southwestern Power Administration
will set rates consistent with current law to recover the full cost of
the civil service retirement system and post-retirement health benefits
for its employees.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 13 11 12
12.1 Civilian personnel benefits..... 3 3 3
21.0 Travel and transportation of
persons....................... 1 1 1
23.1 Rental payments to GSA.......... 1 1 1
25.2 Other services.................. 5 6 7
26.0 Supplies and materials.......... 2 1 1
31.0 Equipment....................... 3 4 4
--------- --------- ----------
99.0 Direct obligations............ 28 27 29
99.0 Reimbursable obligations.......... 10 24 21
--------- --------- ----------
99.9 Total new obligations........... 38 51 50
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0303-0-1-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 173 178 178
---------------------------------------------------------------------------

Continuing Fund, Southwestern Power Administration

A Continuing Fund of $300,000, replenished from receipts from the
sale and transmission of electric power in the southwestern area, is
available permanently for emergency expenses necessary to ensure
continuity of service (16 U.S.C. 825s-2). The fund was last activated
during fiscal year 2001 to finance power purchases associated with below
normal hydropower generation due to drought and to repair transmission
facilities due to storm damage.

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

For carrying out the functions authorized by title III, section
302(a)(1)(E) of the Act of August 4, 1977 (42 U.S.C. 7152), and other
related activities including conservation and renewable resources
programs as authorized, including official reception and representation
expenses in an amount not to exceed $1,500, $171,000,000, to remain
available until expended, of which $167,236,000 shall be derived from
the Department of the Interior Reclamation Fund: Provided, That all
authorities and future contributions described in section 402,
subparagraph (b)(3)(B) of the Reclamation Projects Authorization and
Adjustment Act of 1992 previously assigned to the Secretary of Energy,
Western Area Power Administration, shall be transferred to the Secretary
of the Interior, Bureau of Reclamation.

[[Page 391]]

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating expenses:

00.01 Systems operation and
maintenance................... 37 38 36
00.04 Program direction............... 110 108 123
00.05 Utah mitigation and conservation
fund.......................... 6
--------- --------- ----------
00.91 Total operating expenses...... 153 146 159
01.01 Capital investment................ 19 18 12
09.01 Reimbursable program.............. 266 629 510
--------- --------- ----------
10.00 Total new obligations........... 438 793 681
----------------------------------------------------------------------------

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

21.40 Unobligated balance carried
forward, start of year (non-
fed collections).............. 53 78
21.40 Unobligated balance carried
forward, start of year
(appropriations).............. 1 1
22.00 New budget authority (gross)...... 463 714 681
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 517 793 681
23.95 Total new obligations............. -438 -793 -681
Unobligated balance carried forward, end of
year:

24.40 Unobligated balance carried
forward, end of year (non-fed
collections).................. 78
24.40 Unobligated balance carried
forward, end of year
(appropriations).............. 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 5 4 4
40.20 Appropriation (special fund).... 167 159 167
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 172 163 171
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 297 551 510
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... -6
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 291 551 510
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 463 714 681
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 180 173 247
73.10 Total new obligations............. 438 793 681
73.20 Total outlays (gross)............. -451 -719 -677
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 6
74.40 Obligated balance, end of year.... 173 247 251
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 338 624 587
86.93 Outlays from discretionary
balances........................ 113 95 90
--------- --------- ----------
87.00 Total outlays (gross)........... 451 719 677
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -66 -88 -78
88.40 Non-Federal sources........... -231 -463 -432
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -297 -551 -510
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 6
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 172 163 171
90.00 Outlays........................... 154 168 167
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 6 6 7
99.01 Outlays........................... 6 6 7
---------------------------------------------------------------------------

The Western Area Power Administration (Western) markets electric
power in 15 western States from federally-owned power plants operated
primarily by the Bureau of Reclamation, Corps of Engineers, and the
International Boundary and Water Commission. Western operates and
maintains almost 17,000 circuit-miles of high-voltage transmission line,
more than 260 substations/switchyards, and associated power system
control, communication and electrical facilities for 15 separate power
projects. Western also constructs additions and modifications to
existing facilities.

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

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

Systems operation and maintenance.--The systems operation and
maintenance activity provides essential electrical and communication
equipment replacements, and upgrades, capitalized moveable equipment,
technical services, and supplies and materials necessary for safe
reliable operation and cost-effective maintenance of the power systems.

Purchase power and wheeling.--Between 2001 and 2004, the Western
Area Power Administration will phase-out Federal financing of purchase
power and wheeling activities. Authority to spend power revenues to pay
for purchase power and wheeling activities will end after fiscal year
2004. Industry restructuring and resulting competition now make it
attractive for Western's customers to shop for power and transmission
services. Western will continue to support customer bill crediting, net
billing and other alternative financing arrangements for these
activities.

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

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

Utah mitigation and conservation.--This account is earmarked
primarily for environmental mitigation expenditures covering fish and
wildlife, and recreation resources impacted by the Central Utah Project
and the Colorado River Storage Project in the State of Utah. The FY 2004
President's Budget proposes to transfer the authorities and future
contributions for the Utah Reclamation Mitigation and Conservation
Account from the Secretary of Energy, Western Area Power Administration
to the Secretary of the Interior, Bureau of Reclamation. Western sells
and transmits power from two projects in Utah and provides mitigation
funding separately for these operations. Western does not transmit power
from the Central Utah Project.

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

Western will continue to spend directly out of the Colorado River
Dam Fund for operations and maintenance activities associated with the
Boulder Canyon Project. The Colorado River Dam Fund is a revolving fund
operated by the Interior Department's Bureau of Reclamation. Authority
for Western

[[Page 392]]

to obligate directly from the Colorado River Dam Fund comes from section
104(a) of the Hoover Power Plant Act of 1984.

Based on Administration policy, the Western Area Power
Administration will set rates consistent with current law to recover the
full cost of the Civil Service Retirement System and post-retirement
health benefits for its employees.

In FY 2004, the Administration proposes that financing of the U.S.
Army Corps of Engineers' operation and maintenance costs in Western's
service area, allocated to the power function for repayment, may be
funded from Western receipts derived from the sale of power and related
services. Proprietary receipts estimated for FY 2004 are decreased to
reflect the implementation of this proposal.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 50 59 65
11.3 Other than full-time permanent 1 1 1
11.5 Other personnel compensation.. 4 5 5
--------- --------- ----------
11.9 Total personnel compensation 55 65 71
12.1 Civilian personnel benefits..... 13 15 17
21.0 Travel and transportation of
persons....................... 5 3 4
22.0 Transportation of things........ 3 2 3
23.1 Rental payments to GSA.......... 2 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 3 3 3
25.2 Other services.................. 34 26 29
25.3 Other purchases of goods and
services from Government
accounts...................... 2 2 1
26.0 Supplies and materials.......... 7 7 6
31.0 Equipment....................... 9 10 17
32.0 Land and structures............. 33 29 18
41.0 Grants, subsidies, and
contributions................. 6
--------- --------- ----------
99.0 Direct obligations............ 172 164 171
99.0 Reimbursable obligations.......... 266 629 510
--------- --------- ----------
99.9 Total new obligations........... 438 793 681
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-5068-0-2-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 1,024 1,022 1,042
---------------------------------------------------------------------------

Emergency Fund, Western Area Power Administration

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5069-0-2-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1 1
22.10 Resources available from
recoveries of prior year
obligations..................... 7
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 8 1 1
23.98 Unobligated balance expiring or
withdrawn....................... -7
24.40 Unobligated balance carried
forward, end of year............ 1 1 1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 7
73.45 Recoveries of prior year
obligations..................... -7
----------------------------------------------------------------------------

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

A continuing fund of $500,000 maintained from receipts from the sale
and transmission of electric power is available to defray expenses
necessary to ensure continuity of service. The fund was last activated
during fiscal year 2001 to finance power purchases associated with
below-normal hydropower generation.

Falcon and Amistad Operating and Maintenance Fund

For operation, maintenance, and emergency costs for the
hydroelectric facilities at the Falcon and Amistad Dams, $2,640,000, to
remain available until expended, and to be derived from the Falcon and
Amistad Operating and Maintenance Fund of the Western Area Power
Administration, as provided in section 423 of the Foreign Relations
Authorization Act, Fiscal Years 1994 and 1995.

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5178-0-2-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 5 4 4
Receipts:
02.20 Falcon and Amistad operating and
maintenance fund................ 2 3 3
--------- --------- ----------
04.00 Total: Balances and collections... 7 7 7
Appropriations:
05.00 Falcon and Amistad operating and
maintenance fund................ -3 -3 -3
--------- --------- ----------
07.99 Balance, end of year.............. 4 4 4
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program activity........... 3 3 3
--------- --------- ----------
10.00 Total new obligations (object
class 25.3)................... 3 3 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... 3 3 3
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2 2
73.10 Total new obligations............. 3 3 3
73.20 Total outlays (gross)............. -1 -3 -3
74.40 Obligated balance, end of year.... 2 2 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 2 2
86.93 Outlays from discretionary
balances........................ 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 1 3 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3 3 3
90.00 Outlays........................... 1 3 3
---------------------------------------------------------------------------

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

[[Page 393]]

eral Fund to repay the costs of replacements and the original investment
with interest. Revenues resulting from the Falcon and Amistad Dams power
system operations are deposited to the Falcon and Amistad Operating and
Maintenance Fund.

Public enterprise funds:

Bonneville Power Administration Fund

Expenditures from the Bonneville Power Administration Fund,
established pursuant to Public Law 93-454, are approved for official
reception and representation expenses in an amount not to exceed $1,500.
During fiscal year 2004, no new direct loan obligations may be made.

Program and Financing (in millions of dollars)

Obligations by program activity:
09.02 Power business line............... 1,894 1,872 2,100
09.03 Residential exchange.............. 144 143 143
09.05 Bureau of Reclamation............. 51 59 63
09.06 Corps of Engineers................ 132 135 140
09.07 Colville settlement............... 21 19 20
09.10 U.S. Fish & Wildlife.............. 15 15 16
09.20 Planning council.................. 8 9 9
09.21 Fish and Wildlife................. 144 156 134
09.23 Transmission business line........ 254 262 273
09.24 Conservation and energy efficiency 61 64 63
09.25 interest.......................... 415 416 436
09.26 Pension and health benefits....... 55 35 31
--------- --------- ----------
09.29 total operating expenses........ 3,194 3,185 3,428
09.41 Power business line............... 73 129 105
09.42 Transmission services............. 259 330 330
09.43 Fish and wildlife................. 6 36 36
09.44 Capital equipment................. 22 44 26
09.45 Capitalized bond premiums......... 3
09.46 Conservation & energy efficiency.. 29 47 28
--------- --------- ----------
09.49 total capital investment........ 389 586 528
09.50 Misc. Accounting Adjustments...... 289
09.51 Projects funded in advance........ 34 97 133
--------- --------- ----------
10.00 Total new obligations........... 3,906 3,868 4,089
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 121
22.00 New budget authority (gross)...... 3,785 3,868 4,089
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,906 3,868 4,089
23.95 Total new obligations............. -3,906 -3,868 -4,089
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

61.00 Transferred to other accounts... -127
66.10 Contract authority.............. 235
67.10 Authority to borrow............. 390 281 210
69.00 Offsetting collections (cash)..... 3,739 3,897 4,100
69.10 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -144
69.47 Portion applied to repay debt..... -308 -310 -221
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 3,287 3,587 3,879
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 3,785 3,868 4,089
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 487 397 397
73.10 Total new obligations............. 3,906 3,868 4,089
73.20 Total outlays (gross)............. -4,140 -3,868 -4,089
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 144
74.40 Obligated balance, end of year.... 397 397 397
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 3,677 3,868 4,089
86.98 Outlays from mandatory balances... 463
--------- --------- ----------
87.00 Total outlays (gross)........... 4,140 3,868 4,089
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -89 -90 -90
88.40 Non-Federal sources........... -3,650 -3,807 -4,010
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -3,739 -3,897 -4,100
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 144
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 190 -29 -11
90.00 Outlays........................... 401 -29 -11
----------------------------------------------------------------------------

Bonneville Power Administration (BPA) is the Federal electric power
marketing agency in the Pacific Northwest. BPA markets hydroelectric
power from 21 multipurpose water resource projects of the U.S. Army
Corps of Engineers and 10 projects of the U.S. Bureau of Reclamation,
plus some energy from non-Federal generating projects in the region.
These generating resources and BPA's transmission system, planned by the
end of 2003 to consist of an estimated 15,000 circuit miles of high-
voltage transmission lines and 285 substations, are operated as an
integrated power system with operating and financial results combined
and reported as the Federal Columbia River Power System (FCRPS). BPA is
the largest power wholesaler in the Northwest and provides about forty-
five percent of the region's electric energy supply and about three-
fourths of the region's electric power transmission capacity.

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

BPA will finance its operations on the basis of the self-financing
authority provided by Federal Columbia River Transmission System Act of
1974 (Transmission Act) (Public Law 93-454) and the borrowing authority
provided by the Pacific Northwest Electric Power Planning and
Conservation Act (Pacific Northwest Power Act) (Public Law 96-501) for
energy conservation, renewable energy resources and capital fish
facilities. Authority to borrow is available to the BPA on a permanent,
indefinite basis. The amount of borrowing outstanding at any time cannot
exceed $3.75 billion. The FY 2004 budget includes a proposal to increase
BPA borrowing authority by $700 million to finance planned
infrastructure investments.

Operating expenses: Transmission services business line.--Provides
funding from revenues for electric transmission research and development
and program support of the capital investment program described below
for transmission services. Provides for operating an estimated 15,000
miles of line and 285 substations, and for maintaining the facilities
and equipment of the Bonneville transmission system in 2004.

Power business line.--Provides for the planning, contractual
acquisition and oversight of reliable, cost effective resources. These
resources are needed to serve BPA's portion of the region's forecasted
net electric load requirements. Also includes protection, mitigation and
enhancement of fish and wildlife affected by hydroelectric facilities on
the Columbia River and its tributaries in accordance with the Pacific
Northwest Power Act. Provides for payment of the operation and
maintenance (O&M) costs of the 31 U.S. Army Corps of Engineers and U.S.
Bureau of Reclamation hydro projects, and amortization on the U.S.
Bureau of Reclamation capital investment in power generating facilities
and irrigation assistance at Bureau facilities. Provides for the
planning, contrac

[[Page 394]]

tual acquisition and oversight of reliable, cost effective conservation.
Also provides for extending the benefits of low cost Federal power to
the residential and small farm customers of investor-owned and publicly-
owned utilities, in accordance with the Pacific Northwest Power Act and
for activities of the Pacific Northwest Electric Power and Conservation
Planning Council required by the Pacific Northwest Power Act.

Interest.--Provides for payments to the U.S. Treasury for interest
on borrowings to finance BPA's transmission services, conservation,
capital equipment, fish and wildlife, and associated projects capital
programs under $3.75 billion borrowing authority provided by the
Transmission Act as amended by the Pacific Northwest Power Act and
replenished by Public Law 98-50. In implementing the new borrowing
authority, Bonneville will encourage private-sector or other non-federal
financing or joint financing of transmission line expansions and
additions, develop a five-year investment plan with the participation of
the regional Infrastructure Technical Review Committee or its successor
in the region, use funds only for authorized purposes, include the
proposed use of the funds in its annual budget submissions, and select
projects based on cost effectiveness criteria for achieving the
objective. This category also includes interest on Corps of Engineers,
BPA and U.S. Bureau of Reclamation appropriated debt.

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

Power business line.--Provides for direct funding of additions,
improvements, and replacements at existing Federal hydroelectric
projects in the Northwest. Also provides for capital investments to
implement environmental activities, and protect, mitigate, and enhance
fish and wildlife affected by hydroelectric facilities on the Columbia
River and its tributaries, in accordance with the Pacific Northwest
Power Act. Also provides for the planning, contractual acquisition and
oversight of reliable, cost effective conservation.

Capital equipment/Capitalized bond premium.--Provides for general
purpose ADP equipment, office furniture and equipment, and software
capital development in support of all BPA programs. Also provides for
bond premiums incurred for refinancing of bonds.

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

Financing.--The Transmission Act provides for the use by BPA of all
receipts, collections, and recoveries in cash from all sources,
including the sale of bonds, to finance the annual budget programs of
BPA. These receipts result primarily from the sale of power and wheeling
services. The Transmission Act also provides for authority to borrow
from the U.S. Treasury at rates comparable to borrowings at open market
rates for similar issues. As amended by the Pacific Northwest Power Act
and replenished by Public Law 98-50, it allows for $3.75 billion of
borrowing to be outstanding at any time. The 2004 capital obligations
are estimated to be $528.0 million. To the extent BPA capital borrowing
authority is insufficient in 2004, BPA would use cash reserves generated
by revenues from customers, if available, to finance some of these
investments.

In 2002, BPA made payments to the Treasury of $1.056 billion and
also expects to make payments of $788.0 million in 2003 and $716.0
million in 2004. The 2004 payment will be distributed as follows:
interest on bonds and appropriations ($464.0 million), amortization
($221.0 million), and other ($31.0 million). BPA also received credits
totaling $38 million applied against its Treasury payments in 2002 to
reflect amounts diverted to fish mitigation efforts in the Columbia and
Snake River systems.

Direct loans.--During 2004, no new direct loan obligations may be
made.

Operating results.--Total revenues are forecast at approximately
$4.1 billion in 2004.

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

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

Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-4045-0-3-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Contract authority:
0200 Contract authority................ 235
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-4045-0-3-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 2 2 2
--------- --------- ----------
1290 Outstanding, end of year........ 2 2 2
---------------------------------------------------------------------------

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 89-4045-0-3-271 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 4,101 3,524 2,965 2,965
0102 Expense........................... -4,201 -3,254 -2,761 -2,761
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ -100 270 204 204
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

1101 Fund balances with Treasury..... 597 162 247 247
Investments in US securities:
1106 Receivables, net.............. 4 7 7 7
1206 Non-Federal assets: Receivables,
net............................. 382 291 291 291
1601 Net value of assets related to
pre-1992 direct loans receivable
and acquired defaulted
guaranteed loans receivable:
Direct loans, gross............. 2 2 2 2
Other Federal assets:

1802 Inventories and related
properties.................... 77 83 83 83
1803 Property, plant and equipment,
net........................... 3,294 3,417 3,728 3,728
1901 Other assets.................... 7,292 7,267 6,679 6,679
------------ -------------- ------------ -------------
1999 Total assets.................... 11,648 11,229 11,037 11,037

[[Page 395]]

LIABILITIES:
2102 Federal liabilities: Interest
payable......................... 33 31 31 31
Non-Federal liabilities:

2201 Accounts payable................ 255 131 131 131
2203 Debt............................ 8,870 8,027 8,056 8,056
2207 Other........................... 1,453 1,731 1,373 1,373
------------ -------------- ------------ -------------
2999 Total liabilities............... 10,611 9,920 9,591 9,591
NET POSITION:
3300 Cumulative results of operations.. 1,037 1,309 1,446 1,446
------------ -------------- ------------ -------------
3999 Total net position.............. 1,037 1,309 1,446 1,446
------------ -------------- ------------ -------------
4999 Total liabilities and net position 11,648 11,229 11,037 11,037
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 187 200 211
11.3 Other than full-time permanent.. 3 3 3
11.5 Other personnel compensation.... 18 19 20
--------- --------- ----------
11.9 Total personnel compensation.. 208 222 234
Civilian personnel benefits:

12.1 Civilian personnel benefits..... 3 3 3
12.1 Civilian personnel benefits..... 46 49 52
21.0 Travel and transportation of
persons......................... 9 10 10
22.0 Transportation of things.......... 6 7 7
23.1 Rental payments to GSA............ 11 12 12
23.2 Rental payments to others......... 11 12 13
23.3 Communications, utilities, and
miscellaneous charges........... 6 6 6
25.1 Advisory and assistance services.. 12 13 13
25.2 Other services.................... 2,803 2,690 2,846
25.3 Other purchases of goods and
services from Government
accounts........................ 196 210 222
25.5 Research and development contracts 2 2 2
26.0 Supplies and materials............ 43 46 48
31.0 Equipment......................... 25 26 28
32.0 Land and structures............... 23 24 26
41.0 Grants, subsidies, and
contributions................... 25 26 28
43.0 Interest and dividends............ 477 510 539
--------- --------- ----------
99.0 Reimbursable obligations...... 3,906 3,868 4,089
--------- --------- ----------
99.9 Total new obligations........... 3,906 3,868 4,089
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-4045-0-3-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 3,121 3,260 3,252
---------------------------------------------------------------------------

Bonneville Power Administration Fund

(Legislative proposal, subject to PAYGO)

The FY 2004 budget request includes a proposal to increase
Bonneville's current $3.75 billion borrowing authority by $700 million.
The new borrowing authority will allow BPA to finance additional
infrastructure investments. BPA plans to obligate these funds in FY
2005, $85,000,000; FY 2006, $430,000,000; and FY 2007, $185,000,000.

Colorado River Basins Power Marketing Fund, Western Area Power
Administration

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Program direction................. 35 38 40
09.02 Colorado River storage project.... 137 355 135
09.03 Fort Peck project................. 12 16 18
09.04 Other projects.................... 32 1 1
--------- --------- ----------
10.00 Total new obligations........... 216 410 194
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 54 76 76
22.00 New budget authority (gross)...... 238 410 194
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 292 486 270
23.95 Total new obligations............. -216 -410 -194
24.40 Unobligated balance carried
forward, end of year............ 76 76 76
----------------------------------------------------------------------------

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

Discretionary:
68.00 Offsetting collections (cash). 238 432 216
68.27 Capital transfer to general
fund........................ -22 -22
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 238 410 194
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 23 26 26
73.10 Total new obligations............. 216 410 194
73.20 Total outlays (gross)............. -213 -410 -194
74.40 Obligated balance, end of year.... 26 26 26
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 213 410 194
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -9 -9 -9
88.40 Non-Federal sources........... -229 -423 -207
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -238 -432 -216
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -22 -22
90.00 Outlays........................... -25 -22 -22
----------------------------------------------------------------------------

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

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

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

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

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

[[Page 396]]

Seedskadee Project.--This activity includes Western's expenses for
O&M, power marketing, and transmission of hydroelectric power from
Fontenelle Dam's powerplant in southwestern Wyoming.

Dolores Project.--This activity includes Western's expenses for O&M,
power marketing, and transmission of hydroelectric power from
powerplants at McPhee Dam and Towaoc Canal in southwestern Colorado.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 89-4452-0-3-271 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 77 102 102 102
Investments in US securities:
1106 Receivables, net.............. 1 1 1 1
1206 Non-Federal assets: Receivables,
net............................. 45 34 34 34
Other Federal assets:

1802 Inventories and related
properties.................... 3 2 2 2
1803 Property, plant and equipment,
net........................... 78 79 79 79
1901 Other assets.................... 88 63 63 63
------------ -------------- ------------ -------------
1999 Total assets.................... 292 281 281 281
LIABILITIES:
Federal liabilities:

2101 Accounts payable................ -2
2105 Other........................... 250 242 242 242
Non-Federal liabilities:

2201 Accounts payable................ 16 20 20 20
2207 Other........................... 18 23 23 23
------------ -------------- ------------ -------------
2999 Total liabilities............... 282 285 285 285
NET POSITION:
3300 Cumulative results of operations.. 10 -4 -4 -4
------------ -------------- ------------ -------------
3999 Total net position.............. 10 -4 -4 -4
------------ -------------- ------------ -------------
4999 Total liabilities and net position 292 281 281 281
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 18 18 19
11.5 Other personnel compensation.... 2 2 2
--------- --------- ----------
11.9 Total personnel compensation.. 20 20 21
12.1 Civilian personnel benefits....... 5 6 6
21.0 Travel and transportation of
persons......................... 1 1 2
22.0 Transportation of things.......... 1 1 1
23.1 Rental payments to GSA............ 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 2 2 2
25.2 Other services.................... 95 358 140
25.3 Other purchases of goods and
services from Government
accounts........................ 4 4 4
26.0 Supplies and materials............ 2 3 2
31.0 Equipment......................... 2 2 2
32.0 Land and structures............... 8 4 4
43.0 Interest and dividends............ 8 9
94.0 Financial transfers............... 75
--------- --------- ----------
99.0 Reimbursable obligations...... 141 410 194
--------- --------- ----------
99.9 Total new obligations........... 216 410 194
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-4452-0-3-271 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 276 268 272
---------------------------------------------------------------------------

DEPARTMENTAL ADMINISTRATION

Federal Funds

General and special funds:

Departmental Administration

(including transfer of funds)

For salaries and expenses of the Department of Energy necessary for
departmental administration in carrying out the purposes of the
Department of Energy Organization Act (42 U.S.C. 7101 et seq.),
including the hire of passenger motor vehicles and official reception
and representation expenses (not to exceed $35,000), $326,306,000, to
remain available until expended, plus such additional amounts as
necessary to cover increases in the estimated amount of cost of work for
others notwithstanding the provisions of the Anti-Deficiency Act (31
U.S.C. 1511 et seq.): Provided, That such increases in cost of work are
offset by revenue increases of the same or greater amount, to remain
available until expended: Provided further, That moneys received by the
Department for miscellaneous revenues estimated to total $146,668,000 in
fiscal year 2004 may be retained and used for operating expenses within
this account, and may remain available until expended, as authorized by
section 201 of Public Law 95-238, notwithstanding the provisions of 31
U.S.C. 3302: Provided further, That the sum herein appropriated shall be
reduced by the amount of miscellaneous revenues received during fiscal
year 2004, and any related unappropriated receipt account balances
remaining from prior years' miscellaneous revenues, so as to result in a
final fiscal year 2004 appropriation from the General Fund estimated at
not more than $179,638,000.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0228-0-1-276 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 3 3 3
--------- --------- ----------
07.99 Balance, end of year.............. 3 3 3
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Office of Management, Budget and
Evaluation...................... 85 93 82
00.02 Office of Policy and International
Affairs......................... 16 23 22
00.03 Chief Information Officer......... 81 106
00.04 Office of Congressional and
Intergovernmental Affairs....... 5 5 5
00.05 Office of Public Affairs.......... 4 5 4
00.07 General Counsel................... 22 24 23
00.08 Office of the Secretary........... 4 6 5
00.09 Board of Contract Appeals......... 1 1 1
00.10 Economic impact and diversity..... 6 7 6
00.11 Corporate Management Information
Program......................... 5
09.01 Reimbursable program.............. 72 80 75
--------- --------- ----------
10.00 Total new obligations........... 220 325 329
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 39 30 3
22.00 New budget authority (gross)...... 210 298 326
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 250 328 329
23.95 Total new obligations............. -220 -325 -329
24.40 Unobligated balance carried
forward, end of year............ 30 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 87 161 180
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 123 137 146
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 210 298 326
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 57 61 104
73.10 Total new obligations............. 220 325 329

[[Page 397]]

73.20 Total outlays (gross)............. -212 -282 -321
73.31 Obligated balance transferred to
other accounts.................. -3
73.45 Recoveries of prior year
obligations..................... -1
74.40 Obligated balance, end of year.... 61 104 112
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 182 245 268
86.93 Outlays from discretionary
balances........................ 30 37 53
--------- --------- ----------
87.00 Total outlays (gross)........... 212 282 321
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -80 -89 -95
88.40 Non-Federal sources........... -43 -48 -51
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -123 -137 -146
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 87 161 180
90.00 Outlays........................... 89 145 175
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 8 8 8
99.01 Outlays........................... 8 8 8
---------------------------------------------------------------------------

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

Office of Policy and International Affairs.--The role of the Office
of Policy and International Affairs (PI) is to deliver unbiased advice
to Departmental leadership on existing and prospective energy-related
policies, based on integrated and well-founded data and policy analysis.
The Office represents the Department in interagency discussions on
energy and related policy, and addresses all aspects of the U.S. energy
sector including energy availability, reliability, and economic
efficiency. It has primary responsibility for the Department's
international energy affairs, including energy policy issues, energy
emergency and national security issues, and technology cooperation. It
considers the global and local environmental impacts of energy
production and use. The Office also develops and leads the Department's
bilateral and multilateral cooperation and investment and trade
activities with other nations and international agencies. It also works
closely with the various organizational elements of the Department and
other relevant federal organizations and agencies and domestic
institutions to coordinate and align national security and energy
emergency activities.

The Office of Policy and International Affairs will establish an
office of National Energy Policy (NEP), which will provide Departmental
coordination of and strategic direction on implementing NEP initiatives.
In 2004, the office will develop policies, strategies and options for
implementing the Administration's Climate Change initiatives, focus on
integrating science and technology, and establish DOE programs for
voluntary emissions reporting, voluntary business compacts to reduce
greenhouse emissions, and emissions trading. In addition, in
coordination with the State Department, the office will complement
domestic programs with international climate change partnerships for
cooperation in mutually beneficial areas.

Office of Management, Budget and Evaluation.--The Office of
Management, Budget and Evaluation (OMBE) provides the Department of
Energy (DOE) with centralized direction and oversight for the full range
of financial, management, program evaluation and administrative
services. OMBE coordinates DOE's efforts to achieve the goals of the
President's Management Agenda (PMA) and leads implementation of PMA
initiatives on Strategic Management of Human Capital; Competitive
Sourcing; Improved Financial Management and Budget and Performance
Integration. OMBE's financial activities include budget formulation,
presentation and execution; oversight of DOE-wide internal controls; and
operation of the Department's payroll and financial management systems.
Management activities include strategic planning and program evaluation;
project and contract management policy development and oversight; human
resources policy development and delivery of human resource and
procurement services to DOE headquarters staff. Administrative
activities include the management of headquarters facilities and the
delivery of other services critical to the proper functioning of the
Department of Energy. The budget for the Office of Management, Budget
and Evaluation also supports the activities of the Secretary of Energy
Advisory Board (SEAB), an external advisory board chartered under the
Federal Advisory Committee Act of 1972 (Public Law 92-436).

Chief Information Officer.--The Chief Information Officer program is
responsible for the implementation of the President's Management Agenda
for expanding e-Government. In this role, the office develops policies
to ensure efficient, economical and effective management, planning and
acquisition of information resources and is responsible for coordinating
enterprise cyber security policy; technical development; replacement of
outdated information systems; and delivering shared and common services.

The office follows a corporate approach to services and tightly
integrated budgeting, planning, enterprise architecture and security to
achieve a holistic approach to DOE's information systems. The Department
of Energy's E-Government Strategic Action Plan provides a road map for
this process and identifies 19 specific initiatives including the
integration of disparate financial and HR systems, consolidation of
desktop and network services and development of the corporate date
repository.

The office manages the Corporate Management Information Program
(CMIP). The CMIP program supports the implementation of the Department
of Energy E-government Strategy, especially the development of cost
effective and robust corporate information systems. CMIP has, and
continues to transform the Departmental administration of information
technology investments through the integration and development of an
Enterprise Architecture and a Capital Planning and Investment Control
process.

Congressional and intergovernmental affairs.--This office is
responsible for coordinating, directing, and promoting the Secretary's
and the Department's policies and legislative initiatives with the
Congress, State, territorial, Tribal and local government officials, and
other Federal agencies. The office is also responsible for managing and
overseeing the Department's liaison with members of Congress, the White
House and other levels of government and stakeholders which includes
public interest groups representing state, local and tribal governments.

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

General Counsel.--This office is responsible for providing legal
services to all energy activities except for those functions belonging
exclusively to the Federal Energy Regulatory Commission, which is served
by its own General Counsel. Its responsibilities entail the provision of
legal opinions, advice and services to administrative and program
offices, and the conduct of both administrative and judicial litigation,
as well as legal advice and support for enforcement activities. Further,
the General Counsel appears before State and Federal

[[Page 398]]

agencies in defense of national energy policies and activities. The
office is responsible for the coordination and clearance of proposed
legislation affecting energy activities and testimony before Congress.
The General Counsel is also responsible for ensuring consistency and
legal sufficiency of all energy regulations; administering and
monitoring standards of conduct requirements; and conducting the patents
program.

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

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

Economic impact and diversity.--This office is responsible for:
advising the Secretary on the effects of the Department's policies,
regulations and actions on underrepresented population groups,
communities, and business enterprises; conducting research to determine
energy consumption and use patterns of minorities; and providing
technical assistance to minority educational institutions and minority
business enterprises to enable them to participate more fully in
departmental activities. The office is also responsible for initiatives
which promote inclusion in all aspects of the Department's human capital
and financial resources by increasing diversity in hiring, contracting,
internships, mentoring, and other developmental programs; administering
a departmental small and disadvantaged business program; serves as the
Department's enforcer to ensure that the civil rights of employees are
protected and complaints are processed within applicable regulatory
timeframes; implements the Department's environmental justice strategy;
and is responsible for the Office of Employee Concerns which manages the
whistle blower reform initiative; employee surveys; and eliminating
practices of racial profiling.

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

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 59 75 74
11.3 Other than full-time permanent 6 6 6
11.5 Other personnel compensation.. 3 3 3
--------- --------- ----------
11.9 Total personnel compensation 68 84 83
12.1 Civilian personnel benefits..... 16 17 16
21.0 Travel and transportation of
persons....................... 3 6 6
23.3 Communications, utilities, and
miscellaneous charges......... 1 2 2
25.1 Advisory and assistance services 12 25 31
25.2 Other services.................. 17 36 42
25.3 Other purchases of goods and
services from Government
accounts...................... 27 59 58
25.4 Operation and maintenance of
facilities.................... 2 4 4
25.6 Medical care.................... 1 2 2
26.0 Supplies and materials.......... 2 4 4
31.0 Equipment....................... 1 2 2
41.0 Grants, subsidies, and
contributions................. -2 4 4
--------- --------- ----------
99.0 Direct obligations............ 148 245 254
99.0 Reimbursable obligations.......... 72 80 75
--------- --------- ----------
99.9 Total new obligations........... 220 325 329
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0228-0-1-276 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 1,045 1,215 1,146
---------------------------------------------------------------------------

Office of the Inspector General

For necessary expenses of the Office of the Inspector General in
carrying out the provisions of the Inspector General Act of 1978, as
amended, $39,462,000, to remain available until expended.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program activity........... 32 38 39
--------- --------- ----------
10.00 Total new obligations........... 32 38 39
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 32 38 39
23.95 Total new obligations............. -32 -38 -39
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 32 38 39
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 5 4 5
73.10 Total new obligations............. 32 38 39
73.20 Total outlays (gross)............. -33 -37 -39
74.40 Obligated balance, end of year.... 4 5 5
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 28 32 33
86.93 Outlays from discretionary
balances........................ 5 5 6
--------- --------- ----------
87.00 Total outlays (gross)........... 33 37 39
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 32 38 39
90.00 Outlays........................... 33 37 39
----------------------------------------------------------------------------

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

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0236-0-1-276 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 23 27 27
21.0 Travel and transportation of
persons......................... 1 2 2
25.2 Other services.................... 5 5 7
25.3 Other purchases of goods and
services from Government
accounts........................ 3 4 3
--------- --------- ----------

[[Page 399]]

99.9 Total new obligations........... 32 38 39
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 89-0236-0-1-276 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 250 263 263
---------------------------------------------------------------------------

Intragovernmental funds:

Working Capital Fund

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Payroll and other personnel....... 4 5 5
Administrative services:

09.10 Supplies........................ 3 3 3
09.11 Postage......................... 2 3 3
09.12 Photocopying.................... 3 2 2
09.13 Printing & graphics............. 3 3 3
09.14 Building rental, operations &
maintenance................... 57 58 62
--------- --------- ----------
09.19 Total, Administrative services 69 69 73
Information management systems & operations:

09.20 Telecommunication............... 5 7 8
09.21 Office automation equipment &
support....................... 1 1 1
09.22 Networking...................... 6 6 6
--------- --------- ----------
09.29 Total, Information management
systems & operations........ 12 14 15
Procurement services:

09.30 Contract closeout............... 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 86 89 94
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 10 17 11
22.00 New budget authority (gross)...... 94 83 83
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 104 100 94
23.95 Total new obligations............. -86 -89 -94
24.40 Unobligated balance carried
forward, end of year............ 17 11
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 94 83 83
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 28 31 37
73.10 Total new obligations............. 86 89 94
73.20 Total outlays (gross)............. -83 -83 -83
74.40 Obligated balance, end of year.... 31 37 48
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 80 80 80
86.93 Outlays from discretionary
balances........................ 3 3 3
--------- --------- ----------
87.00 Total outlays (gross)........... 83 83 83
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -94 -83 -83
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -11
---------------------------------------------------------------------------

The Department's Working Capital Fund (WCF) provides the following
common administrative services: rent and building operations,
telecommunications, network connectivity, automated office systems,
payroll and personnel processing, supplies, printing, copying, mail, on-
line learning, and contract closeout. Establishment of the WCF has
helped the Department reduce waste and improve efficiency by expanding
customer's choice of the amount, quality and source of administrative
services.

Object Classification (in millions of dollars)

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Identification code 89-4563-0-4-276 2002 actual 2003 est. 2004 est.
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23.1 Rental payments to GSA............ 44 46 50
23.3 Communications, utilities, and
miscellaneous charges........... 22 23 23
24.0 Printing and reproduction......... 6 6 6
25.2 Other services.................... 9 9 9
25.3 Other purchases of goods and
services from Government
accounts........................ 1 1 2
25.7 Operation and maintenance of
equipment....................... 1 1 1
26.0 Supplies and materials............ 3 3 3
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99.9 Total new obligations........... 86 89 94
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ADMINISTRATIVE PROVISIONS, DEPARTMENT OF ENERGY

Appropriations under this Act for the current fiscal year shall be
available for hire of passenger motor vehicles; hire, maintenance, and
operation of aircraft; purchase, repair, and cleaning of uniforms; and
reimbursement to the General Services Administration for security guard
services.
From appropriations under this Act, transfers of sums may be made to
other agencies of the Government for the performance of work for which
the appropriation is made.
None of the funds made available to the Department of Energy under
this Act shall be used to implement or finance authorized price support
or loan guarantee programs unless specific provision is made for such
programs in an appropriations Act.
The Secretary is authorized to accept lands, buildings, equipment,
and other contributions from public and private sources and to prosecute
projects in cooperation with other agencies, Federal, State, private or
foreign: Provided, That revenues and other moneys received by or for the
account of the Department of Energy or otherwise generated by sale of
products in connection with projects of the Department appropriated
under this Act may be received by the Secretary of Energy, and, subject
to appropriation in advance within two years of such receipt, be used
only for plant construction, operation, costs, and payments to cost-
sharing entities as provided in appropriate cost-sharing contracts or
agreements: Provided further, That amounts in excess of such
appropriation shall be covered into the Treasury as miscellaneous
receipts.
No funds provided in this Act may be expended by the Department of
Energy to prepare, issue, or process procurement documents for programs
or projects for which appropriations have not been made.
In addition to other authorities set forth in this Act, the
Secretary may accept fees and contributions from public and private
sources, to be deposited in a contributed funds account, and prosecute
projects using such fees and contributions in cooperation with other
Federal, State or private agencies or concerns.

GENERAL FUND RECEIPT ACCOUNTS

(in millions of dollars)

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2002 actual 2003 est. 2004 est.
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Offsetting receipts from the public:
89-089400 Fees and recoveries,
Federal Energy Regulatory Commission 18 18
89-223000 Oil and gas sale proceeds
at NPRs............................. 7 7 7
89-223100 Privatization of Elk Hills.
89-224500 Sale and transmission of
electric energy, Falcon Dam......... 2 2 2
89-224700 Sale and transmission of
electric energy, Southwestern Power
Administration...................... 89 90 92
Legislative proposal, subject to
PAYGO............................. -51 -38
89-224800 Sale and transmission of
electric energy, Southeastern Power
Administration...................... 94 138 180
Legislative proposal, subject to
PAYGO............................. -70 -73
89-224900 Sale of power and other
utilities, not otherwise classified. 57 43 43
Legislative proposal, subject to
PAYGO............................. -28 -34
89-288900 Repayments on miscellaneous
recoverable costs, not otherwise
classified.......................... 62 35 31
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General Fund Offsetting receipts from
the public............................. 311 184 228
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[[Page 400]]

GENERAL PROVISIONS

Sec. 301. (a) None of the funds appropriated by this Act may be used
to award a management and operating contract, or award a significant
extension or expansion to an existing management and operating contract,
unless such contract is awarded using competitive procedures or the
Secretary of Energy grants, on a case-by-case basis, a waiver to allow
for such a deviation. The Secretary may not delegate the authority to
grant such a waiver.
(b) At least 60 days before a contract award for which the Secretary
intends to grant such a waiver, the Secretary shall submit to the
Subcommittees on Energy and Water Development of the Committees on
Appropriations of the House of Representatives and the Senate a report
notifying the Subcommittees of the waiver and setting forth, in
specificity, the substantive reasons why the Secretary believes the
requirement for competition should be waived for this particular award.
Sec. 302. None of the funds appropriated by this Act may be used
to--
(1) develop or implement a workforce restructuring plan that
covers employees of the Department of Energy; or
(2) provide enhanced severance payments or other benefits for
employees of the Department of Energy, under section 3161 of the
National Defense Authorization Act for Fiscal Year 1993 (Public Law
102-484; 42 U.S.C. 7274h).
Sec. 303. None of the funds appropriated by this Act may be used to
prepare or initiate Requests For Proposals (RFPs) for a program if the
program has not been funded by Congress.

(transfers of unexpended balances)

Sec. 304. The unexpended balances of prior appropriations provided
for activities in this Act may be transferred to appropriation accounts
for such activities established pursuant to this title. Balances so
transferred may be merged with funds in the applicable established
accounts and thereafter may be accounted for as one fund for the same
time period as originally enacted.
Sec. 305. None of the funds in this or any other Act for the
Administrator of the Bonneville Power Administration may be used to
enter into any agreement to perform energy efficiency services outside
the legally defined Bonneville service territory, with the exception of
services provided internationally, including services provided on a
reimbursable basis, unless the Administrator certifies in advance that
such services are not available from private sector businesses.
Sec. 306. When the Department of Energy makes a user facility
available to universities and other potential users, or seeks input from
universities and other potential users regarding significant
characteristics or equipment in a user facility or a proposed user
facility, the Department shall ensure broad public notice of such
availability or such need for input to universities and other potential
users. For purposes of this section, the term ``user facility''
includes, but is not limited to: (1) a user facility as described in
section 2203(a)(2) of the Energy Policy Act of 1992 (42 U.S.C.
13503(a)(2)); (2) a National Nuclear Security Administration Defense
Programs Technology Deployment Center/User Facility; and (3) any other
Departmental facility designated by the Department as a user facility.
Sec. 307. The Administrator of the National Nuclear Security
Administration may authorize the plant manager of a covered nuclear
weapons research, development, testing or production facility to engage
in research, development, and demonstration activities with respect to
the engineering and manufacturing capabilities at such facility in order
to maintain and enhance such capabilities at such facility: Provided,
That of the amount allocated to a covered nuclear weapons facility each
fiscal year from amounts available to the Department of Energy for such
fiscal year for national security programs, not more than an amount
equal to 2 percent of such amount may be used for these activities:
Provided further, That for purposes of this section, the term ``covered
nuclear weapons facility'' means the following:
(1) the Kansas City Plant, Kansas City, Missouri;
(2) the Y-12 Plant, Oak Ridge, Tennessee;
(3) the Pantex Plant, Amarillo, Texas;
(4) the Savannah River Plant, South Carolina; and
(5) the Nevada Test Site.
Sec. 308. Section 310 of the Energy and Water Development
Appropriations Act, 2000 (Public Law 106-60), is hereby repealed.
Sec. 309. Funds appropriated by this or any other Act, or made
available by the transfer of funds in this Act, for intelligence
activities are deemed to be specifically authorized by the Congress for
purposes of section 504 of the National Security Act of 1947 (50 U.S.C.
414) during fiscal year 2004 until the enactment of the Intelligence
Authorization Act for fiscal year 2004.