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 2008

[[Page 351]]

DEPARTMENT OF ENERGY

NATIONAL NUCLEAR SECURITY ADMINISTRATION

Federal 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, $394,656,000, to
remain available until expended.

Note.--A regular 2007 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. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0313-0-1-053 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Office of the Administrator....... 359 360 395
--------- --------- ----------
10.00 Total new obligations........... 359 360 395
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 10 7
22.00 New budget authority (gross)...... 341 353 395
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.22 Unobligated balance transferred
from other accounts............. 14
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 366 360 395
23.95 Total new obligations............. -359 -360 -395
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 7
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 342 342 395
40.35 Appropriation permanently
reduced....................... -3
42.00 Transferred from other accounts. 2
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 341 342 395
Mandatory:

62.00 Transferred from other accounts. 11
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 341 353 395
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 108 96 83
73.10 Total new obligations............. 359 360 395
73.20 Total outlays (gross)............. -370 -373 -405
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 96 83 73
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 310 282 326
86.93 Outlays from discretionary
balances........................ 60 82 77
86.97 Outlays from new mandatory
authority....................... 9
86.98 Outlays from mandatory balances... 2
--------- --------- ----------
87.00 Total outlays (gross)........... 370 373 405
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 341 353 395
90.00 Outlays........................... 370 373 405
---------------------------------------------------------------------------

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 (NNSA) field offices. This
account provides the Federal salaries and other expenses of the
Administrator's direct staff, for Weapons Activities and Defense Nuclear
Nonproliferation, and Federal employees at the NNSA service center and
site offices. Program Direction for Naval Reactors remains within that
program's account, and program direction for Secure Transportation Asset
remains in Weapons Activities.

Object Classification (in millions of dollars)

11.1 Full-time permanent............. 178 178 175
11.3 Other than full-time permanent.. 4 4 5
11.5 Other personnel compensation.... 8 8 7
--------- --------- ----------
11.9 Total personnel compensation.. 190 190 187
12.1 Civilian personnel benefits....... 46 41 46
13.0 Benefits for former personnel..... 1 2 3
21.0 Travel and transportation of
persons......................... 11 11 12
23.1 Rental payments to GSA............ 3 4 4
23.3 Communications, utilities, and
miscellaneous charges........... 4 5 7
25.1 Advisory and assistance services.. 35 36 31
25.2 Other services.................... 33 37 43
25.3 Other purchases of goods and
services from Government
accounts........................ 17 17 43
25.4 Operation and maintenance of
facilities...................... 9 8 9
25.5 Research and development contracts 1 1 1
25.7 Operation and maintenance of
equipment....................... 7 6 7
26.0 Supplies and materials............ 1 1 1
41.0 Grants, subsidies, and
contributions................... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 359 360 395
---------------------------------------------------------------------------

Employment Summary

----------------------------------------------------------------------------
Identification code 89-0313-0-1-053 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 1,797 1,890 1,949
---------------------------------------------------------------------------

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, $808,219,000, to
remain available until expended.

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3 4
22.00 New budget authority (gross)...... 782 781 808
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 785 785 808
23.95 Total new obligations............. -781 -785 -808
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 790 781 808

[[Page 352]]

40.35 Appropriation permanently
reduced....................... -8
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 782 781 808
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 296 242 155
73.10 Total new obligations............. 781 785 808
73.20 Total outlays (gross)............. -835 -872 -790
--------- --------- ----------
74.40 Obligated balance, end of year.. 242 155 173
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 664 664 687
86.93 Outlays from discretionary
balances........................ 171 208 103
--------- --------- ----------
87.00 Total outlays (gross)........... 835 872 790
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 782 781 808
90.00 Outlays........................... 835 872 790
---------------------------------------------------------------------------

Naval Reactors.--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. 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 prototype reactor plants that are shut down.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0314-0-1-053 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
11.1 Personnel compensation: Full-time
permanent....................... 20 21 22
12.1 Civilian personnel benefits....... 5 5 5
21.0 Travel and transportation of
persons......................... 2 2 2
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...................... 689 689 711
31.0 Equipment......................... 28 32 32
32.0 Land and structures............... 33 32 32
41.0 Grants, subsidies, and
contributions................... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 781 785 808
---------------------------------------------------------------------------

Employment Summary

Weapons Activities

(including transfer of funds)

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, $6,511,312,000, to
remain available until expended.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0240-0-1-053 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:

00.01 Directed stockpile work......... 1,388 1,415 1,447
00.02 Campaigns....................... 2,123 1,937 1,866
00.03 Readiness in technical base and
facilities.................... 1,657 1,686 1,662
00.04 Secure transportation asset..... 210 210 216
00.05 Nuclear weapons incident
response...................... 118 135 162
00.06 Facilities and infrastructure
recapitalization.............. 150 291 294
00.07 Safeguards and security......... 764 721 847
00.10 Environmental projects and
operations.................... 17 17
--------- --------- ----------
01.00 Total, direct program........... 6,410 6,412 6,511
09.01 Reimbursable program.............. 2,475 2,811 2,410
--------- --------- ----------
10.00 Total new obligations........... 8,885 9,223 8,921
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,094 412
22.00 New budget authority (gross)...... 8,215 8,811 8,921
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.21 Unobligated balance transferred to
other accounts.................. -13
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 9,297 9,223 8,921
23.95 Total new obligations............. -8,885 -9,223 -8,921
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 412
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 6,434 6,412 6,511
40.35 Appropriation permanently
reduced....................... -64
41.00 Transferred to other accounts... -2
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 6,368 6,412 6,511
Spending authority from
offsetting collections:
58.00 Offsetting collections (cash). 2,387 2,399 2,410
58.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -540
--------- --------- ----------
58.90 Spending authority from
offsetting collections
(total discretionary)....... 1,847 2,399 2,410
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 8,215 8,811 8,921
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,509 2,222 2,465
73.10 Total new obligations............. 8,885 9,223 8,921
73.20 Total outlays (gross)............. -8,711 -8,980 -9,185
73.45 Recoveries of prior year
obligations..................... -1
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 540
--------- --------- ----------
74.40 Obligated balance, end of year.. 2,222 2,465 2,201
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5,871 5,486 5,559
86.93 Outlays from discretionary
balances........................ 2,840 3,494 3,626
--------- --------- ----------
87.00 Total outlays (gross)........... 8,711 8,980 9,185
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -2,300 -2,300 -2,311
88.40 Non-Federal sources........... -87 -99 -99
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -2,387 -2,399 -2,410
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 540
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 6,368 6,412 6,511
90.00 Outlays........................... 6,324 6,581 6,775
---------------------------------------------------------------------------

Weapons activities provide 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 manu

[[Page 353]]

facture 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 the
development of a Reliable Replacement Warhead and the evolution of the
Nuclear Weapons Complex to be more responsive and cost effective. The
Department also supports the capability to return to underground
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
assessment; weapon dismantlement and disposal; and research,
development, and certification technology efforts to meet 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.

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. It includes program direction funding for couriers.

Nuclear weapons incident response.--Manages strategically placed
people and equipment to provide a technically trained response to any
nuclear or radiological emergency worldwide.

Facilities and infrastructure recapitalization.--Executes a multi-
year effort to restore the physical infrastructure of the nuclear
weapons complex and supports the responsive infrastructure requirements
of the Nuclear Posture Review. This capital renewal and sustainability
program focuses on deferred maintenance reduction of mission-critical
facilities and infrastructure, disposition of excess non-process
contaminated facilities, and construction of selected utility line
items. The Program also is working towards institutionalizing
responsible and accountable facility management within NNSA consistent
with industry best practices.

Environmental projects and operations program.--Is responsible for
management of long-term environmental stewardship at NNSA sites.
Activities include groundwater treatment, environmental monitoring of
surface water, ground water, soils and landfill remedies; and reporting
and liaison requirements for various states and surveillance/monitoring
of contaminated, excess buildings.

Safeguards and security.--Provides for all safeguard and security
requirements including protective forces, systems and cyber security
(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 National Security Complex, and the
Savannah River Site Tritium Facilities.

Object Classification (in millions of dollars)

Personnel compensation:
11.1 Full-time permanent........... 31 35 35
11.5 Other personnel compensation.. 12 14 14
--------- --------- ----------
11.9 Total personnel compensation.. 43 49 49
12.1 Civilian personnel benefits..... 21 21 21
13.0 Benefits for former personnel... 1 1
21.0 Travel and transportation of
persons....................... 7 5 5
23.1 Rental payments to GSA.......... 7
23.3 Communications, utilities, and
miscellaneous charges......... 2 2
25.1 Advisory and assistance services 44 45 45
25.2 Other services.................. 244 270 270
25.3 Other purchases of goods and
services from Government
accounts...................... 12 12 12
25.4 Operation and maintenance of
facilities.................... 4,948 4,777 4,876
25.5 Research and development
contracts..................... 99 80 80
25.7 Operation and maintenance of
equipment..................... 6 6 6
26.0 Supplies and materials.......... 2 11 11
31.0 Equipment....................... 200 271 271
32.0 Land and structures............. 698 807 807
41.0 Grants, subsidies, and
contributions................. 79 55 55
--------- --------- ----------
99.0 Direct obligations............ 6,410 6,412 6,511
99.0 Reimbursable obligations.......... 2,475 2,811 2,410
--------- --------- ----------
99.9 Total new obligations........... 8,885 9,223 8,921
---------------------------------------------------------------------------

Employment Summary

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, $1,672,646,000, to remain available until expended.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0309-0-1-053 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Nonproliferation and verification
research and development........ 312 308 265
00.02 Nonproliferation and international
security........................ 90 81 125
00.03 International nuclear materials
protection and cooperation...... 423 423 372
00.04 Global initiatives for
proliferation prevention........ 39 28
00.05 HEU transparency implementation... 19 18
00.06 Elimination of weapons-grade
plutonium production (EWGPP).... 179 206 182
00.07 Fissile materials disposition..... 544 690 609
00.08 Russian plutonium disposition..... 20 2
00.09 Global threat reduction
initiatives..................... 95 107 120
--------- --------- ----------
08.00 Total direct program............ 1,721 1,863 1,673
Reimbursable program:

09.01 EWGPP Contributions............. 13
--------- --------- ----------
09.99 Total reimbursable program...... 13
--------- --------- ----------
10.00 Total new obligations........... 1,734 1,863 1,673
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 571 458 216
22.00 New budget authority (gross)...... 1,623 1,621 1,673
22.21 Unobligated balance transferred to
other accounts.................. -2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,192 2,079 1,889
23.95 Total new obligations............. -1,734 -1,863 -1,673
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 458 216 216
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,631 1,621 1,673
40.35 Appropriation permanently
reduced....................... -16

[[Page 354]]

41.00 Transferred to other accounts... -6
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,609 1,621 1,673
58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 14
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,623 1,621 1,673
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,088 1,402 1,506
73.10 Total new obligations............. 1,734 1,863 1,673
73.20 Total outlays (gross)............. -1,420 -1,759 -1,862
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,402 1,506 1,317
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 896 892 921
86.93 Outlays from discretionary
balances........................ 524 867 941
--------- --------- ----------
87.00 Total outlays (gross)........... 1,420 1,759 1,862
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.40 Non-Federal sources........... -1
88.45 Offsetting governmental
collections (from non-
Federal sources)............ -13
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -14
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,609 1,621 1,673
90.00 Outlays........................... 1,406 1,759 1,862
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2006 actual 2007 est. 2008 est.
Enacted/requested:
Budget Authority............ 1,609 1,621 1,673
Outlays..................... 1,406 1,759 1,862
Supplemental proposal:
Budget Authority............ 63 50
Outlays..................... 41 52

Total:
Budget Authority............ 1,609 1,684 1,723
Outlays..................... 1,406 1,800 1,914

The mission of this program is to: 1) prevent the spread of
materials, technology, and expertise relating to weapons of mass
destruction; 2) advance the technologies to detect the proliferation of
weapons of mass destruction (WMD) worldwide; 3) and eliminate or secure
inventories of surplus materials and infrastructure usable for nuclear
weapons. The program addresses the danger that hostile nations or
terrorist groups may acquire WMD or weapons-usable material, dual-use
production technology or weapons of mass destruction expertise. The
major elements of the program include the following:

Nonproliferation and verification research and development conducts
long-term research and development leading to prototype demonstrations
and detection systems for strengthening U.S. capabilities to respond to
current and projected threats to national and homeland security posed by
the proliferation of nuclear weapons and diversion of special nuclear
material. The program interfaces directly with NNSA and other Department
of Energy (DOE) programs as well as other U.S. Government agencies to
provide innovative tools, techniques, technologies, and capabilities to
meet their nonproliferation, counter-proliferation, and counter-
terrorism mission requirements.

Nonproliferation and international security efforts control export
of items and controls technology useful for (WMD); continue an augmented
export control cooperation program involving emerging suppliers and
high-traffic transit states; break up proliferation networks and improve
international export control guidelines; develop verification
technologies for countries of proliferation concern; implement
international safeguards in conjunction with the International Atomic
Energy Agency (IAEA); develop and implement policy in support of global
nonproliferation regime; serve as the technical edge within the
interagency for various interdiction activities; develop and implement
transparency measures to ensure that nuclear materials are secure;
develop and implement innovative approaches to improve regional
security, help to transition WMD scientific communities in high-risk
nations, and conduct international emergency management and cooperation
activities. The Highly Enriched Uranium (HEU) Transparency and
Implementation and the Global Initiatives for Proliferation Prevention
programs have been incorporated into Nonproliferation and International
Security.

International nuclear materials protection and cooperation continues
to improve the security of nuclear material and nuclear warheads in
Russia and other counties of proliferation concern by installing basic
rapid upgrades and thorough comprehensive upgrades. Reducing the
potential for diversion of nuclear warheads and nuclear materials has
been a critical priority for the United States. Russia and the United
States have expanded cooperation in this area significantly to include
Strategic Rocket Forces and 12th Main Directorate sites containing
nuclear warheads. The United States, through DOE/NNSA's Second Line of
Defense Program, will continue to work with international partners to
enhance their capabilities to detect, deter, and interdict illicit
trafficking in nuclear and other radioactive materials, including the
screening of containerized cargo at strategic international seaports.

Elimination of weapons-grade plutonium production enhances nuclear
nonproliferation by assisting Russia in ceasing its production of
weapons-grade plutonium production by providing replacement power
production capacity. This will result in the shutdown of the world's
last three plutonium producing reactors, and eliminate the production of
1.2 metric tons of plutonium per year.

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. The program focuses U.S. efforts to accomplish the Plutonium
Management and Disposition Agreement between the United States and
Russia, which commits both countries to dispose of 34 metric tons of
surplus weapons-grade plutonium; and separate efforts to down blend
surplus U.S. highly enriched uranium.

Global threat reduction initiative removes and/or secures high-risk
nuclear radiological materials and equipment around the world that pose
a threat to the United States and the international community; addresses
all vulnerable materials removal and radioactive source security and
recovery; targets research reactors and medical isotopes production
processes worldwide for conversion to suitable Low-Enriched Uranium
(LEU) fuels and targets; eliminates stockpiles of Russian-origin and
U.S.-origin spent nuclear fuel in foreign research reactors through
repatriation of such material to Russia and the United States; prevents
proliferation of nuclear weapons by securing nearly three tons of
weapons-grade plutonium in the BN-350 breeder reactor at Aktau,
Kazakhstan; purchases Russian HEU fuel for use in U.S. research
reactors; identifies, recovers, and stores, on an interim-basis, certain
domestic radioactive sealed sources, and other radiological materials
that pose a security risk to the United States and/or world community;
reduces the international threat posed by radiological materials that
could be used in a radiological dispersal device (RDD) or ``dirty
bomb.''

[[Page 355]]

Object Classification (in millions of dollars)

23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
25.1 Advisory and assistance services 19 20 11
25.2 Other services.................. 330 360 196
25.3 Other purchases of goods and
services from Government
accounts...................... 21 21 19
25.4 Operation and maintenance of
facilities.................... 902 755 1,035
25.5 Research and development
contracts..................... 12 116 116
31.0 Equipment....................... 46 49 49
32.0 Land and structures............. 376 527 234
41.0 Grants, subsidies, and
contributions................. 14 14 12
--------- --------- ----------
99.0 Direct obligations............ 1,721 1,863 1,673
99.0 Reimbursable obligations.......... 13
--------- --------- ----------
99.9 Total new obligations........... 1,734 1,863 1,673
---------------------------------------------------------------------------

Cerro Grande Fire Activities

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0312-0-1-053 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.10 Cerro Grande fire activities...... 5
00.20 Physical damage, destruction
repair, and risk mitigation..... 4
00.30 Restoring services................ 1
--------- --------- ----------
10.00 Total new obligations........... 10
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.10 Resources available from
recoveries of prior year
obligations..................... 9
22.22 Unobligated balance transferred
from other accounts............. 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 10
23.95 Total new obligations............. -10
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 29 14 3
73.10 Total new obligations............. 10
73.20 Total outlays (gross)............. -16 -11 -3
73.45 Recoveries of prior year
obligations..................... -9
--------- --------- ----------
74.40 Obligated balance, end of year.. 14 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 16 11 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 16 11 3
---------------------------------------------------------------------------

Cerro Grande Fire Activities.--Emergency funding was provided in
2000 and 2001 for restoration activities at the Los Alamos National
Laboratory in New Mexico after the Cerro Grande Fire in May 2000.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0312-0-1-053 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.4 Operation and maintenance of
facilities...................... 1
32.0 Land and structures............... 9
--------- --------- ----------
99.9 Total new obligations........... 10
---------------------------------------------------------------------------

Pajarito Plateau Homesteaders Compensation Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5520-0-2-054 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Parjarito plateau................. 6 3
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 6 3
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 9 3
23.95 Total new obligations............. -6 -3
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 3
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 5 3
73.10 Total new obligations............. 6 3
73.20 Total outlays (gross)............. -1 -5 -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 5 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 1 5 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 1 5 3
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 9 8
92.02 Total investments, end of year:
Federal securities: Par value... 8
---------------------------------------------------------------------------

The Pajarito Plateau Homesteaders Compensation Fund is dedicated to
the settlement of two lawsuits in the United States District Court for
the District of New Mexico. This fund was authorized by Section 3147 of
the Ronald W. Reagan National Defense Authorization Act for Fiscal Year
2005, (P.L. 108-375) to pay claims for the Pajarito Plateau homesteaders
pertaining to acquisition of their lands and property during the
Manhattan Project.

ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

Federal Funds

Defense Environmental Restoration and Waste Management

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0242-0-1-053 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1 1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1 1 1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 9 4
73.20 Total outlays (gross)............. -4
73.31 Obligated balance transferred to
other accounts.................. -5
--------- --------- ----------
74.40 Obligated balance, end of year.. 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 4
---------------------------------------------------------------------------

The Environmental Management program was restructured in 2004. These
activities are now funded in the Defense Environmental Cleanup
appropriation.

Defense Environmental Cleanup

For Department of Energy expenses, including the purchase,
construction, and acquisition of plant and capital equipment and other
expenses necessary for atomic energy defense environmental cleanup
activities in carrying out the purposes of the Department of Energy

[[Page 356]]

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 three passenger motor vehicles for replacement only,
$5,363,905,000, to remain available until expended, of which
$463,000,000 shall be transferred to the ``Uranium Enrichment
Decontamination and Decommissioning Fund''.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0251-0-1-053 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Closure sites..................... 1,025 473 43
00.02 Hanford site, 2012 completion
projects........................ 441 412 413
00.03 Hanford site, 2035 completion
projects........................ 330 401 464
00.04 River protection, tank farm
activities...................... 321 277 274
00.05 River protection, waste treatment
plant........................... 521 605 690
00.06 Idaho............................. 526 519 504
00.07 NNSA sites........................ 300 302 271
00.08 Oak Ridge......................... 239 162 179
00.09 Savannah River, 2012 completion
projects........................ 254 238 31
00.10 Savannah River, 2035 competion
projects........................ 402 285 510
00.11 Savannah River, tank farm
activities...................... 525 578 665
00.12 Waste Isolation Pilot Plant....... 228 215 220
00.13 Program support................... 29 42 33
00.14 Safeguards and security........... 278 294 273
00.15 Technology development and
deployment...................... 35 22 21
00.16 Program direction................. 249 301 310
00.17 D&D fund contribution............. 446 452 463
09.01 Hanford site...................... 3
09.02 River protection, tank farms...... 3
--------- --------- ----------
10.00 Total new obligations........... 6,149 5,584 5,364
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 21 32
22.00 New budget authority (gross)...... 6,135 5,552 5,364
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.22 Unobligated balance transferred
from other accounts............. 24
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 6,181 5,584 5,364
23.95 Total new obligations............. -6,149 -5,584 -5,364
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 32
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 6,192 5,552 5,364
40.35 Appropriation permanently
reduced....................... -62
41.00 Transferred to other accounts... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 6,129 5,552 5,364
58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 6
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 6,135 5,552 5,364
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2,143 2,265 1,921
73.10 Total new obligations............. 6,149 5,584 5,364
73.20 Total outlays (gross)............. -6,263 -5,928 -5,560
73.32 Obligated balance transferred from
other accounts.................. 237
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 2,265 1,921 1,725
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 4,434 4,022 3,894
86.93 Outlays from discretionary
balances........................ 1,829 1,906 1,666
--------- --------- ----------
87.00 Total outlays (gross)........... 6,263 5,928 5,560
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -6
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 6,129 5,552 5,364
90.00 Outlays........................... 6,257 5,928 5,560
---------------------------------------------------------------------------

Defense Environmental Management activities that were previously
funded in two separate appropriations, Defense Site Acceleration
Completion and Defense Environmental Services, are now funded in the
Defense Environmental Cleanup appropriation as a result of a budget
restructuring in 2006. The Defense Environmental Cleanup program is
responsible for identifying and reducing risks and managing waste at
sites where the Department carried out defense-related nuclear research
and production activities that resulted in radioactive, hazardous, and
mixed waste contamination requiring remediation, stabilization, or some
other type of cleanup action. The Budget displays the cleanup program by
site.

Closure sites.--Funds geographic sites that are nearing cleanup
completion or have completed cleanup and are awaiting transfer to the
Office of Legacy Management or other DOE program or private sector
entity. The sites contained in this budget include Ashtabula, Columbus,
Fernald, Miamisburg (Mound), and Rocky Flats. Closure and post-closure
activities will include final contract fee payments for project physical
completion, and work to cover any potential gap between Environmental
Management (EM) acceptance of the contractor's declaration of physical
completion and the date EM transfers site custodianship to another
entity.

Hanford site.--Funds the Hanford site cleanup and environmental
restoration to protect the Columbia River. Because of the immensity of
the cleanup program at the Hanford site, the cleanup is managed by two
site offices: the Richland Operations Office and the Office of River
Protection.

The Hanford site (Richland) is responsible for cleanup of most of
the geographic area on the Hanford site, and its projects are displayed
in two accounts: projects to be completed by 2012 and projects to be
completed before 2035. The primary cleanup focus is the safe storage,
treatment and disposal of Hanford's legacy wastes and environmental
restoration. Risk to the public, workers, and the environment will be
reduced by removing contamination before it migrates to the Columbia
River.

The Office of River Protection at the Hanford site is responsible
for the storage, retrieval, treatment, immobilization, and disposal of
tank waste and the operation, maintenance, engineering, and construction
activities in the 200 Area Tank Farms. Its budget has two components,
the operation and maintenance of radioactive liquid waste tank farms and
construction of the Waste Treatment and Immobilization Plant.

Idaho.--Funds the Idaho Cleanup Project, which is aimed at reducing
the risk of contamination reaching the Snake River Plain Aquifer from
nuclear and hazardous waste buried or stored on-site. It also funds
efforts to eliminate infrastructure costs by aggressively conducting
cleanup operations to reduce the site ``footprint''; stabilize legacy
spent nuclear fuel through 2012; and treat and dispose of the sodium
bearing tank wastes, close tank farms, perform initial tank soils
remediation work as well as preparation of the stored high-level waste
calcine for final disposition.

NNSA sites.--Funds the safe and efficient cleanup of the
environmental legacy at the following National Nuclear Security
Administration sites: Kansas City Plant, Lawrence Livermore National
Laboratory--Livermore Site and Site 300, Los Alamos National Laboratory,
Nevada Site Office, Pantex Plant, and the Separations Process Research
Unit. The cleanup strategy is a risk-based and regulatory compliant
approach that focuses first on those contaminant plumes and sources that
are the greatest contributors to risk. The overall goal is to ensure
that risks to the public and workers are controlled, followed by work to
clean up soil and groundwater using a risk-based methodology.

[[Page 357]]

Oak Ridge.--Funds defense-related cleanup of the three facilities
that make up the Oak Ridge Reservation: the East Tennessee Technology
Park, the Oak Ridge National Laboratory, and the Y-12 Plant. The overall
cleanup strategy is based on surface water considerations, encompassing
five distinct watersheds that feed the Clinch River. Cleanup actions
will ensure that waste is contained; on-site surface water quality is
improved to meet required standards; and off-site users of the Clinch
River remain protected.

Savannah River site.--Funds the safe stabilization, treatment, and
disposition of legacy nuclear materials, spent nuclear fuel, and waste
at the Savannah River site. The cleanup funding is displayed in three
accounts: projects to be completed by 2012, projects to be completed
before 2035, and projects related to the Radioactive Liquid Waste Tank
Farms, including Defense Waste Processing Facility operations. The
Savannah River cleanup strategy has four primary objectives: 1)
eliminate the highest risks first through safe stabilization, treatment,
and disposition of EM-owned nuclear materials, spent nuclear fuel, and
waste; 2) significantly reduce costs of continuing operations and
surveillance and maintenance; 3) decommission all EM-owned facilities;
and 4) remediate groundwater and contaminated soils, using an area
closure approach.

Waste Isolation Pilot Plant.--Funds the Waste Isolation Pilot Plant,
the world's first permitted deep geologic repository for the permanent
disposal of radioactive waste, and the Nation's only disposal site for
defense-generated transuranic waste. The Waste Isolation Pilot Plant,
managed by the Carlsbad Field Office, is an operating facility,
supporting the cleanup of transuranic waste from waste generator and
storage sites. The Waste Isolation Pilot Plant is crucial to DOE
completing its cleanup and closure mission.

Program direction.--Funds the Federal workforce responsible for the
overall direction and administrative support of the EM program,
including both Headquarters and field personnel.

Program support.--Funds EM Headquarters policy and oversight
activities. This includes management and direction for various
crosscutting EM and Department of Energy initiatives; establishment and
implementation of national and departmental policy; and analyses and
integration activities across the Department of Energy complex in a
consistent, responsible and efficient manner.

Safeguards and security.--Funds activities to ensure protection
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 national security or the health and
safety of Department of Energy and contractor employees, the public or
the environment.

Technology development and deployment.--Funds projects to address
the immediate, near- and long-term technology needs identified by the EM
sites, enabling them to accelerate their cleanup schedules, treat
orphaned wastes, improve worker safety, and provide technical
foundations for the sites' end state visions.

Federal contribution to the Uranium Enrichment Decontamination and
Decommissioning Fund.--Funds the Federal Government's contribution to
the Uranium Enrichment Decontamination and Decommissioning Fund, as
required by the Energy Policy Act of 1992.

Object Classification (in millions of dollars)

Personnel compensation:
11.1 Full-time permanent........... 132 135 140
11.3 Other than full-time permanent 4 4 4
11.5 Other personnel compensation.. 6 6 6
--------- --------- ----------
11.9 Total personnel compensation.. 142 145 150
12.1 Civilian personnel benefits..... 37 38 39
13.0 Benefits for former personnel... 1 1 1
21.0 Travel and transportation of
persons....................... 7 6 6
22.0 Transportation of things........ 1 1 1
23.1 Rental payments to GSA.......... 2 2 2
23.2 Rental payments to others....... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 2 2 2
25.1 Advisory and assistance services 81 73 71
25.2 Other services.................. 1,004 907 870
25.3 Other purchases of goods and
services from Government
accounts...................... 32 29 28
25.4 Operation and maintenance of
facilities.................... 4,071 3,678 3,528
25.5 Research and development
contracts..................... 8 7 7
25.7 Operation and maintenance of
equipment..................... 1 1 1
26.0 Supplies and materials.......... 4 4 3
31.0 Equipment....................... 13 12 11
32.0 Land and structures............. 657 594 569
41.0 Grants, subsidies, and
contributions................. 85 77 74
--------- --------- ----------
99.0 Direct obligations............ 6,149 5,578 5,364
99.0 Reimbursable obligations.......... 6
--------- --------- ----------
99.9 Total new obligations........... 6,149 5,584 5,364
---------------------------------------------------------------------------

Employment Summary

Defense Environmental Services

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0249-0-1-053 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.03 Non-closure environmental
activities...................... 1
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 24 1
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.21 Unobligated balance transferred to
other accounts.................. -24
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1 1
23.95 Total new obligations............. -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 340 2
73.10 Total new obligations............. 1
73.20 Total outlays (gross)............. -105 -3
73.31 Obligated balance transferred to
other accounts.................. -232
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 105 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 105 3
---------------------------------------------------------------------------

The Environmental Management budget was restructured in 2006.
Activities funded in 2005 and prior years are now funded in the Defense
Environmental Cleanup 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,
and classified activities, in carrying out the purposes of the Depart

[[Page 358]]

ment 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 twelve passenger motor vehicles for
replacement only, $763,974,000, to remain available until expended.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0243-0-1-999 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.10 Health, Safety, and Security...... 428
00.20 Security and safety performance
assurance....................... 314 317
00.40 Environment, safety, and health
(Defense)....................... 90 84
00.45 Legacy management (Defense)....... 30 72 159
00.55 Defense related administrative
support......................... 87 89 99
00.65 Defense activities at INL......... 123 124 73
00.75 Hearings and appeals.............. 4 5 5
--------- --------- ----------
10.00 Total new obligations........... 648 691 764
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 55 53
22.00 New budget authority (gross)...... 637 638 764
22.10 Resources available from
recoveries of prior year
obligations..................... 9
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 701 691 764
23.95 Total new obligations............. -648 -691 -764
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 53
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 642 638 764
40.35 Appropriation permanently
reduced....................... -6
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 636 638 764
58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 637 638 764
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 343 310 275
73.10 Total new obligations............. 648 691 764
73.20 Total outlays (gross)............. -672 -726 -740
73.45 Recoveries of prior year
obligations..................... -9
--------- --------- ----------
74.40 Obligated balance, end of year.. 310 275 299
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 414 414 497
86.93 Outlays from discretionary
balances........................ 258 312 243
--------- --------- ----------
87.00 Total outlays (gross)........... 672 726 740
----------------------------------------------------------------------------

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.................. 636 638 764
90.00 Outlays........................... 671 726 740
---------------------------------------------------------------------------

Health, Safety and Security.--The Office of Health, Safety, and
Security (HSS) provides corporate-level leadership and management to
protect the health, safety, and security of the Department's workers,
the public, and the environment. HHS was formed on October 1, 2006, to
strengthen the Department's health, safety, and security functions by
integrating the activities of the former Offices of Environment, Safety,
and Health and Security and Safety Performance Assurance. HHS functions
include: policy and guidance development and technical assistance;
analysis of environment, safety, health, and security performance;
health studies; screening programs for former workers; employee
compensation support; corporate safety-based quality assurance programs;
safety and security education and training; interface with the Defense
Nuclear Facilities Safety Board; identifying and managing the deployment
of advanced security technologies; classification and declassification
of national security information; providing for the security of the
Department's facilities in the National Capital Area; independent
oversight of security, cyber security, emergency management,
environment, safety and health performance; and implementing safety and
security enforcement programs.

Office of Legacy Management (Defense).--The programs support
defense-related, long-term stewardship activities (e.g., groundwater
monitoring, disposal cell maintenance, records management, and
management of natural resources) at sites where active remediation has
been completed. In addition, LM is responsible for the management and
administration of pension and benefit continuity for contractor retirees
at these sites.

All other.--Obligations are included for defense-related
administrative support, defense-related activities at Idaho National
Laboratory (INL), 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, and 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. The Office also decides requests for exception from
DOE orders, rules, and regulations.

Object Classification (in millions of dollars)

Personnel compensation:
11.1 Full-time permanent........... 83 70 70
11.3 Other than full-time permanent 2 2 2
11.5 Other personnel compensation.. 5 2 2
--------- --------- ----------
11.9 Total personnel compensation.. 90 74 74
12.1 Civilian personnel benefits..... 22 15 15
13.0 Benefits for former personnel... 1 1 1
21.0 Travel and transportation of
persons....................... 5 3 3
23.3 Communications, utilities, and
miscellaneous charges......... 1 1
25.1 Advisory and assistance services 22 52 52
25.2 Other services.................. 246 259 316
25.3 Other purchases of goods and
services from Government
accounts...................... 24 33 33
25.4 Operation and maintenance of
facilities.................... 183 206 222
25.5 Research and development
contracts..................... 14 14
25.7 Operation and maintenance of
equipment..................... 4 4 4
26.0 Supplies and materials.......... 13 5 5
31.0 Equipment....................... 8 4 4
32.0 Land and structures............. 7 2 2
41.0 Grants, subsidies, and
contributions................. 22 17 17
--------- --------- ----------
99.0 Direct obligations............ 647 690 763
99.0 Reimbursable obligations.......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 648 691 764
---------------------------------------------------------------------------

Employment Summary

----------------------------------------------------------------------------
Identification code 89-0243-0-1-999 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 834 661 707
---------------------------------------------------------------------------

Defense 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, $292,046,000, to remain
available until expended.

[[Page 359]]

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0244-0-1-053 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program activity........... 346 346 292
--------- --------- ----------
10.00 Total new obligations........... 346 346 292
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 346 346 292
23.95 Total new obligations............. -346 -346 -292
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 350 346 292
40.35 Appropriation permanently
reduced....................... -4
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 346 346 292
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 16 57 86
73.10 Total new obligations............. 346 346 292
73.20 Total outlays (gross)............. -305 -317 -306
--------- --------- ----------
74.40 Obligated balance, end of year.. 57 86 72
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 289 260 219
86.93 Outlays from discretionary
balances........................ 16 57 87
--------- --------- ----------
87.00 Total outlays (gross)........... 305 317 306
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 346 346 292
90.00 Outlays........................... 305 317 306
---------------------------------------------------------------------------

This appropriation was established by the Congress as part of the
1993 Energy and Water Development Appropriation (P.L. 102-377) in lieu
of payment from DOE 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,
amounts have been deposited into the Nuclear Waste Fund for costs for
activities related to disposal of high-level waste generated from the
atomic energy defense activities of DOE. At the end of 2006, the balance
owed by the Federal Government to the Nuclear Waste Fund was
approximately $580 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 2006, a total of approximately $2,969
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 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.1 Advisory and assistance services.. 36 1 1
25.2 Other services(service contracts). 11 1 1
25.3 Other purchases of goods and
services from Government
accounts........................ 5 20 20
25.4 Operation and maintenance of
facilities...................... 272 300 245
41.0 Grants, subsidies, and
contributions................... 22 24 25
--------- --------- ----------
99.9 Total new obligations........... 346 346 292
---------------------------------------------------------------------------

ENERGY PROGRAMS

Federal 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 thirty passenger motor vehicles
for replacement only, $4,397,876,000, to remain available until
expended.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0222-0-1-251 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 High energy physics............... 701 733 782
00.03 Nuclear physics................... 358 397 471
00.05 Biological and environmental
research........................ 564 473 532
00.06 Basic energy sciences............. 1,113 1,199 1,499
00.07 Advanced scientific computing
research........................ 228 236 340
00.09 Science laboratory infrastructure. 42 43 79
00.11 Program direction................. 161 164 185
00.14 Fusion energy sciences............ 282 306 428
00.15 Safeguard and securities.......... 68 68 71
00.17 Workforce development for teachers
& scientists.................... 7 7 11
00.18 Small business innovation research 104
00.19 Small business technology transfer 13
--------- --------- ----------
10.00 Total new obligations........... 3,641 3,626 4,398
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 28 21
22.00 New budget authority (gross)...... 3,633 3,605 4,398
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,662 3,626 4,398
23.95 Total new obligations............. -3,641 -3,626 -4,398
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 21
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 3,634 3,605 4,398
40.35 Appropriation permanently
reduced....................... -36
42.00 Transferred from other accounts. 35
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 3,633 3,605 4,398
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2,194 2,232 2,241
73.10 Total new obligations............. 3,641 3,626 4,398
73.20 Total outlays (gross)............. -3,602 -3,617 -4,067
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 2,232 2,241 2,572
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2,136 2,090 2,551
86.93 Outlays from discretionary
balances........................ 1,466 1,527 1,516
--------- --------- ----------
87.00 Total outlays (gross)........... 3,602 3,617 4,067
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3,633 3,605 4,398
90.00 Outlays........................... 3,602 3,617 4,067
---------------------------------------------------------------------------

High energy physics.--The high energy physics (HEP) research program
focuses on gaining insights into the fundamental constituents of matter,
the fundamental forces in nature, and the mysterious forms of unseen
energy and matter that dominate the universe. The program encompasses
both experimental and theoretical particle physics research and related
advanced accelerator and detector technology research

[[Page 360]]

and development (R&D). The primary mode of experimental research
involves the study of collisions of energetic particles using large
particle accelerators or colliding beam facilities.

In addition to contributing to breakthrough discoveries such as the
existence of the invisible ``dark energy'' that permeates empty space,
state-of-the-art technology developed for accelerators and detectors
contributes to progress in fields such as fast electronics, high-speed
computing, superconducting magnet technology, and high-power radio
frequency devices. HEP 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 imaging and diagnostics, and materials, biology, and chemistry
research using light sources.

The HEP budget request will support the continued operation of the
Department's major HEP facilities: the Fermilab Tevatron Collider and
Neutrinos at the Main Injector (NuMI) and the Stanford Linear
Accelerator Center B-Factory. In addition, funding is provided for the
Large Hadron Collider research program for commissioning, maintenance,
and operations of U.S.-supplied components, and software and computing
infrastructure for data analysis as the Large Hadron Collider begins
operations in 2008.

The HEP request also develops the most compelling new scientific
opportunities for the U.S. HEP program in the next decade, including $60
million of R&D for a potential international linear collider, enabling a
U.S. leadership role in a comprehensive, coordinated international R&D
program. While the future trajectory of the HEP program has a strong
emphasis on linear collider R&D, it will also provide a diverse array of
other world-leading efforts, including the understanding of dark energy,
strong U.S. participation in Large Hadron Collider physics, and
forefront neutrino experiments and facilities. Accelerator technology
R&D will be increasingly focused on superconducting radio frequency
structures in view of their potentially wide applicability to many
scientific disciplines.

Nuclear physics.--The goal of the nuclear physics program is to
understand the evolution and structure of nuclear matter, from the
smallest building blocks; quarks and gluons; to the stable elements in
the Universe created by stars; to unique isotopes created in the
laboratory that exist at the limits of stability and possess radically
different properties from known matter. The program aims to provide a
compelling story of how the world around us has evolved, and focuses on
such questions as--``What is the structure of the nucleon?''; ``What is
the structure of nucleonic matter?''; ``What are the properties of hot
nuclear matter?''; ``What is the nuclear microphysics of the
universe?''; and ``What is to be the new Standard Model?''

Fundamental research in nuclear physics will provide new insights
and advance the world's knowledge on the nature of matter and energy and
develop the scientific knowledge, technologies, and trained manpower
that are needed to underpin DOE's missions for nuclear-related national
security, energy, and environmental quality.

The Relativistic Heavy Ion Collider research program at Brookhaven
National Laboratory will continue pursuing the characterization of new
states of matter formed at high energies and densities.

The Thomas Jefferson National Accelerator Facility/Continuous
Electron Beam Accelerator Facility (CEBAF) experimental program will
continue its studies focused on understanding the substructure of the
nucleon. The doubling of the electron beam energy at CEBAF to 12 giga-
electron volts (GeV) opens the opportunity for new discoveries and an
understanding of quark confinement--one of the mysteries of modern
physics. Research, development, and design for the upgrade continue in
2008. Operations of the Holifield Radioactive Ion Beam Facility at Oak
Ridge National Laboratory and the Argonne Tandem Linear Accelerator
System at Argonne National Laboratory will be supported for the study of
nuclear structure and nuclear astrophysics, as will the operation of
accelerator laboratories at universities.

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 activities include programs
in global climate change; environmental remediation; molecular,
cellular, and systemic studies on the biological effects of radiation;
structural biology; medical applications of nuclear technology; and the
Human Genome Program. The program also supports science related to
carbon sequestration. 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. The Genomics:
GTL activity will develop the science, technology, and knowledge base to
harness microbial and plant systems for cost effective renewable energy
production, carbon sequestration, and environmental remediation. The
request includes $75.0 million for Genomics: GTL Bioenergy Research
Centers. Research at the Centers will focus on developing the science
underpinning biofuel production.

Basic energy sciences.--The basic energy sciences (BES) program
funds basic research material sciences, chemistry, geosciences, and
aspects of biosciences; supporting the Department's nuclear and non-
nuclear technology programs. The BES program supports a substantial
basic research budget for materials sciences, chemical sciences,
biosciences, 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 request includes $59.5 million for hydrogen and
fuel cell research as part of the President's Hydrogen Initiative as
well as funding for basic research in other areas that support the
Nation's energy agenda.

The BES program operates large national user research facilities,
including synchrotron light and neutron sources, a combustion research
facility, and smaller user facilities such as materials preparation and
electron microscopy centers. The request includes continued support to
maintain utilization of the Department's large state-of-the-art national
user facilities. 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.

The BES request includes $166.8 million for the first full year of
operations of the Spallation Neutron Source (SNS) at Oak Ridge National
Laboratory to meet the Nation's neutron scattering needs. The request
includes $21.9 million to continue design and fabrication of additional
instruments beyond the initial instrument suite included in the
construction project. SNS will provide significant scientific,
technical, and economic benefits that derive from neutron scattering and
materials irradiation research. Reflecting the high priority given to
nanoscale research, BES funding for the multi-agency national
nanotechnology program includes funding for the operation of the
Nanoscale Science Research Centers (NSRCs) at the Oak Ridge, Lawrence
Berkeley, Brookhaven, and Argonne national laboratories, and for one
NSRC collocated at

[[Page 361]]

Sandia and Los Alamos national laboratories. The request also includes
$51.4 million for construction of the Linac Coherent Light Source at the
Stanford Linear Accelerator Center. The BES request also includes $45
million in design funding for the National Synchrotron Light Source II,
$17.2 million for construction of the User Support Building at Lawrence
Berkeley National Laboratory, and $7.4 million for design and
construction of the Photon Engineering Laser Science and Engineering
Building Upgrade at Stanford Linear Accelerator Center.

Fusion energy sciences.--The mission of the fusion energy sciences
(FES) program is the national research effort to advance plasma science,
fusion science, and fusion technology that is the knowledge base needed
for an economically and environmentally attractive energy source. 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: a predictive
capability for key aspects of burning plasmas; progress toward
demonstrating enhanced fundamental understanding of magnetic confinement
through research on magnetic confinement configuration optimization; and
progress toward developing the fundamental understanding of high energy
density plasma physics.

The Budget includes $160 million for the U.S. contributions to ITER
project, an international burning plasma physics experiment that is an
essential next step toward eventually developing fusion as a
commercially viable energy source.

The Budget also provides for support of basic research in plasma
science in partnership with NSF, and investigation of innovative
confinement concepts, along with continued operation of DIII-D, Alcator
C-Mod, and the National Spherical Torus Experiment 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 in the long run. Fabrication of the National
Compact Stellarator Experiment will continue at Princeton Plasma Physics
Laboratory in collaboration with Oak Ridge National Laboratory. Theory
and modeling, using high performance computing and enabling technology
research will also be conducted in support of the science experiments.

Advanced scientific computing research.--This program includes
research in mathematical, information, and computational sciences. The
purpose of this 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 and network facilities. The request includes research,
integrated with other science programs, on application of computer
simulation and modeling to science problems.

Science laboratories infrastructure.--The goal of this 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.
The Oak Ridge Landlord activity is also funded here. The request
includes funding for the demolition of the Bevatron Complex at Lawrence
Berkeley National Laboratory.

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 DOE 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 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 in areas of science, technology, engineering, and
mathematics.

Object Classification (in millions of dollars)

11.1 Full-time permanent............. 88 89 108
11.3 Other than full-time permanent.. 2 2 2
11.5 Other personnel compensation.... 4 4 5
--------- --------- ----------
11.9 Total personnel compensation.. 94 95 115
12.1 Civilian personnel benefits....... 21 21 25
21.0 Travel and transportation of
persons......................... 4 4 4
23.1 Rental payments to GSA............ 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 5 5 5
25.1 Advisory and assistance services.. 6 6 7
25.2 Other services.................... 70 74 68
25.3 Other purchases of goods and
services from Government
accounts........................ 6 6 6
25.4 Operation and maintenance of
facilities...................... 2,094 2,246 2,573
25.5 Research and development contracts 21 21 26
26.0 Supplies and materials............ 2 2 2
31.0 Equipment......................... 205 205 442
32.0 Land and structures............... 254 186 280
41.0 Grants, subsidies, and
contributions................... 858 754 844
--------- --------- ----------
99.9 Total new obligations........... 3,641 3,626 4,398
---------------------------------------------------------------------------

Employment Summary

Energy Supply and Conservation

For Department of Energy expenses including the purchase,
construction, and acquisition of plant and capital equipment, and other
expenses necessary for energy supply and energy conservation 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 twenty passenger motor vehicles for replacement only, including
one ambulance, $2,187,943,000, to remain available until expended.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0224-0-1-999 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Hydrogen technology............... 154 157 213
00.04 Solar energy...................... 82 83 148
00.05 Wind energy....................... 38 39 40
00.06 Hydropower........................ 1
00.07 Geothermal technology............. 24 25
00.08 Biomass and biorefinery systems
R&D............................. 89 92 179
00.10 Vehicle technologies.............. 179 184 176
00.12 Weatherization and
intergovernmental activities.... 318 320 205
00.13 Facilities and infrastructure..... 26 26 7
00.14 Program direction................. 98 104 105
00.15 Renewable program support......... 13 14 13
00.16 Building technologies............. 70 71 87
00.17 Industrial technologies........... 59 58 46
00.18 Federal energy management program. 20 19 17
--------- --------- ----------
00.91 Total, energy efficiency and
renewable energy.............. 1,171 1,192 1,236
01.03 Electric transmission and
distribution.................... 161 164 115

[[Page 362]]

01.04 Nuclear energy research and
development..................... 427 428 802
01.05 Legacy management................. 33 33 35
01.06 Environment, safety & health...... 28 31
--------- --------- ----------
01.91 Total, other energy supply...... 649 656 952
--------- --------- ----------
08.00 Total, direct program........... 1,820 1,848 2,188
09.10 Reimbursable program.............. 676 1,532 1,500
--------- --------- ----------
10.00 Total new obligations........... 2,496 3,380 3,688
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 29 63
22.00 New budget authority (gross)...... 2,505 3,317 3,688
22.10 Resources available from
recoveries of prior year
obligations..................... 3
22.22 Unobligated balance transferred
from other accounts............. 22
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,559 3,380 3,688
23.95 Total new obligations............. -2,496 -3,380 -3,688
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 63
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,831 1,817 2,188
40.35 Appropriation permanently
reduced....................... -18
41.00 Transferred to other accounts... -17
42.00 Transferred from other accounts. 12
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,808 1,817 2,188
Spending authority from
offsetting collections:
58.00 Offsetting collections (cash). 837 1,500 1,500
58.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -140
--------- --------- ----------
58.90 Spending authority from
offsetting collections
(total discretionary)....... 697 1,500 1,500
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,505 3,317 3,688
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 696 1,446 1,609
73.10 Total new obligations............. 2,496 3,380 3,688
73.20 Total outlays (gross)............. -2,074 -3,217 -3,484
73.32 Obligated balance transferred from
other accounts.................. 191
73.45 Recoveries of prior year
obligations..................... -3
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 140
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,446 1,609 1,813
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,525 2,318 2,485
86.93 Outlays from discretionary
balances........................ 549 899 999
--------- --------- ----------
87.00 Total outlays (gross)........... 2,074 3,217 3,484
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -541 -1,005 -1,005
88.40 Non-Federal sources........... -296 -495 -495
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -837 -1,500 -1,500
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 140
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,808 1,817 2,188
90.00 Outlays........................... 1,237 1,717 1,984
---------------------------------------------------------------------------

The purpose of Energy Supply and Conservation activities is to
develop new energy technologies and improve productivity of existing
energy technologies. Included are programs that fund basic and applied
research, development, demonstration, and technical assistance to
promote deployment of new technologies. These programs have potential to
contribute to economic growth, increased energy security, and a cleaner
environment. Some of the programs also contribute to the President's
Advanced Energy Initiative to accelerate development of reliable and
affordable clean energy technologies to help change the way the Nation
powers its homes, businesses, and vehicles.

This account provides funds for both operating expenses and capital
equipment for the advancement of the various energy technologies.

Energy efficiency and renewable energy.--These programs undertake
research, development, and deployment activities to advance the use of
renewable energy and energy efficiency technologies and related
practices to meet the growing need for clean and affordable energy. The
program also provides formula grants to States for energy efficiency
improvements and weatherization assistance for low-income families.
Specific activities of the 2008 program include:
Hydrogen technology: As a key component of the President's
Hydrogen Fuel Initiative, this program develops hydrogen production,
storage, and delivery and fuel cell technologies that are more
energy efficient, cleaner, safer, and lower in cost. The long-term
aim is to develop hydrogen technology that will allow the Nation to
aggressively move forward to achieve a vision of a cleaner, more
secure energy future. Current research aims to enable industry to
commercialize a hydrogen infrastructure and fuel cell vehicles by
2020.
Biomass: This program funds research, development, and
technology validation on advanced technologies that could enable
future biorefineries to sustainably and economically convert
cellulosic biomass to fuels, chemicals, heat and power. The
program's goal is to help make cellulosic ethanol cost competitive
by 2012 using a wide array of regionally available biomass
resources.
Solar energy: Through the Solar America Initiative (SAI), the
program will help accelerate the market competitiveness of solar
electricity from photovoltaic (PV) systems. SAI features a
competition among industry-led consortia to lower the cost of energy
from PV systems through manufacturing and efficiency improvements.
Concentrating solar power activities are focused on lowering the
cost of solar power using centralized generation and development of
thermal storage to provide power on demand.
Wind energy: This program develops technology in partnership
with industry to allow wind power to be cost-competitive in more
prevalent, lower-wind speed areas. The program also supports
activities to reduce barriers to electric grid integration and
technology acceptance.
Vehicle technologies: This program supports the FreedomCAR and
Fuel Partnership and the 21st Century Truck Partnership with
industry. Program activities encompass a suite of technologies
needed for hybrid, plug-in hybrid, and fuel cell vehicles, including
lightweight materials, electronic power control and electric drive
motors, and advanced energy storage devices. This program also
supports research to improve the efficiency of advanced combustion
engines, using fuels with formulations developed for such engines,
and incorporating non-petroleum based components. In general,
program R&D seeks technology breakthroughs that will enable
America's highway transportation to greatly reduce petroleum use.
The program also includes community-based outreach via Clean Cites
coalitions, competitive awards, and other activities to facilitate
the market adoption of alternative fuels and highly efficient
automotive 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. The Building Technologies program accelerates the
availability of highly efficient building tech

[[Page 363]]

nologies 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 funds cost-shared research
in critical technology areas identified in partnership with
industry. It also funds energy audits and training programs to help
U.S. industrial firms reduce their energy use. The program targets
energy efficiency research opportunities in manufacturing processes
and crosscutting energy systems as well as accelerating new-term
market adoption of emerging technologies.
Distributed energy resources: As directed by the Congress in the
2006 appropriation conference report, this program has been
transferred to the Office of Electricity Delivery and Energy
Reliability.
Federal energy management program: This program reduces the cost
and environmental impact of the Federal Government's energy use by
advancing energy efficiency, water conservation and renewable energy
in Federal facilities, including DOE facilities.
Facilities and infrastructure: The Budget includes funding for
general plant projects and general purpose equipment at the National
Renewable Energy Laboratory.
Weatherization and intergovernmental activities: The
Weatherization Assistance Program improves the energy efficiency of
homes of low income families by providing formula grants and
technical assistance to State and local weatherization agencies. The
State Energy Program provides financial assistance to States through
formula and, in 2008, competitive grants, enabling States to
individually tailor energy efficiency projects to local needs. The
Tribal Energy Program helps Tribal leaders develop energy plans and
incorporate renewable energy technologies on Tribal lands. The
Renewable Energy Production Incentive provides financial incentive
payments to State and local governments and non-profit cooperatives
generating electricity through renewable technologies. The Asia
Pacific Partnership encourages clean energy technology development
and deployment in Australia, Japan, South Korea, China, and India.

Electricity delivery and energy reliability.--The mission of the
Office of Electricity Delivery and Energy Reliability (OE) is to lead
national efforts to modernize the electric grid, enhance security and
reliability of the Nation's energy infrastructure, and facilitate
recovery from disruptions to the energy supply. This effort is
accomplished through research, development, demonstration and technology
transfer; implementation of the electricity grid modernization
requirements contained in the Energy Policy Act of 2005 (including the
congestion study and analysis of potential National Interest Electric
Transmission corridors as authorized by Section 1221 of that Act),
technical assistance and analytical support to States and regions for
policies, market mechanisms, and activities that facilitate competitive,
reliable, environmentally sensitive, and customer-friendly electric
markets; authorization for electricity exports and Presidential permits
for cross-border transmission lines; energy power systems analysis; and
coordinating and carrying out DOE Lead Sector Specific Agency
responsibilities for protecting the Nation's critical energy
infrastructure. Partnerships to engage industry, utilities, States,
other Federal programs and agencies, universities, national
laboratories, and other stakeholders in OE's efforts to ensure a more
secure, reliable, efficient, and affordable national electricity supply
will continue to be a key element of the program. Beginning in 2006, the
activities within the Distributed Energy Program, previously funded in
the Energy Conservation account, were merged within the Office of
Electricity Delivery and Energy Reliability.

Nuclear energy.--The 2008 Budget continues to support the Nuclear
Power 2010 program which supports demonstration of key regulatory
approval processes in order to encourage the deployment of new, advanced
nuclear plants in the United States in the 2010 timeframe. The Budget
continues to support the Advanced Fuel Cycle Initiative, including the
Global Nuclear Energy Partnership, which aims to accelerate the
development of 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 recover the energy
content in spent nuclear fuel in a manner that enhances proliferation-
resistance. The Budget also supports the Generation IV Nuclear Energy
Systems Initiative, where the United States will participate in multi-
nation research and development projects in support of next-generation
nuclear reactors and fuel cycles. The Department supports the Nuclear
Hydrogen Initiative, which will develop advanced technologies that can
be used in tandem with Generation IV nuclear plants to generate
economic, commercial quantities of hydrogen to support a sustainable,
clean energy future for the United States.

Nuclear Energy programs 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, in a safe, environmentally compliant and cost-effective
manner. The Office of Nuclear Energy, budget also includes funding for
Idaho sitewide operations and safeguards and security programs, as part
of the Lead Program Secretarial Office responsibilities for Idaho.

Environment, safety and health.--Prior to 2008, Environment, Safety
and Health programs were funded in two separate accounts (Energy Supply
and Conservation and Other Defense Activities appropriation). Beginning
in 2008, those activities have been restructured and are now funded by
the Health, Safety and Security Program within the Other Defense
Activities appropriation.

Office of Legacy Management (Non-defense).--This program supports
non-defense related long-term stewardship activities (e.g., groundwater
monitoring, disposal cell maintenance, and management of natural
resources) at sites where active remediation has been completed. In
addition, LM is responsible for the management and administration of
pension and benefit continuity for contractor retirees at these sites.

Object Classification (in millions of dollars)

Personnel compensation:
11.1 Full-time permanent........... 82 98 102
11.3 Other than full-time permanent 3 3 4
11.5 Other personnel compensation.. 4 4 4
--------- --------- ----------
11.9 Total personnel compensation.. 89 105 110
12.1 Civilian personnel benefits..... 24 35 36
21.0 Travel and transportation of
persons....................... 5 5 6
23.3 Communications, utilities, and
miscellaneous charges......... 3 5 6
25.1 Advisory and assistance services 59 59 60
25.2 Other services.................. 100 99 140
25.3 Other purchases of goods and
services from Government
accounts...................... 21 21 21
25.4 Operation and maintenance of
facilities.................... 695 701 750
25.5 Research and development
contracts..................... 121 120 180
26.0 Supplies and materials.......... 2 2 2
31.0 Equipment....................... 14 14 18
32.0 Land and structures............. 38 38 38
41.0 Grants, subsidies, and
contributions................. 649 644 821
--------- --------- ----------
99.0 Direct obligations............ 1,820 1,848 2,188
99.0 Reimbursable obligations.......... 676 1,532 1,500
--------- --------- ----------

[[Page 364]]

99.9 Total new obligations........... 2,496 3,380 3,688
---------------------------------------------------------------------------

Employment Summary

Non-Defense Site Acceleration Completion

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0250-0-1-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2
22.21 Unobligated balance transferred to
other accounts.................. -2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation......
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 38
73.20 Total outlays (gross)............. -27
73.31 Obligated balance transferred to
other accounts.................. -11
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

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

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

The Environmental Management Program was restructured in 2006.
Activities funded in this account in 2005 and prior years are now in the
Non-Defense Environmental Cleanup appropriation.

Non-Defense Environmental Cleanup

For Department of Energy expenses, including the purchase,
construction, and acquisition of plant and capital equipment and other
expenses necessary for non-defense environmental cleanup 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 three
passenger motor vehicles for replacement only, $180,937,000, to remain
available until expended.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0315-0-1-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 West Valley demonstration project. 74 74 54
00.02 Gaseous diffusion plants.......... 133 108 38
00.03 Fast flux test facility........... 46 36 10
00.04 Small sites....................... 95 96 79
--------- --------- ----------
10.00 Total new obligations........... 348 314 181
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4
22.00 New budget authority (gross)...... 350 310 181
22.22 Unobligated balance transferred
from other accounts............. 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 352 314 181
23.95 Total new obligations............. -348 -314 -181
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 New budget authority (gross),
detail........................ 353 310 181
40.35 Appropriation permanently
reduced....................... -3
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 350 310 181
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balances, start of year. 222 265 139
73.10 Total new obligations............. 348 314 181
73.20 Total outlays (gross)............. -316 -440 -250
73.32 Obligated balance transferred from
other accounts.................. 11
--------- --------- ----------
74.40 Obligated balance, end of year.. 265 139 70
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays (gross), detail........... 179 217 127
86.93 Outlays from discretionary
balances........................ 137 223 123
--------- --------- ----------
87.00 Total outlays (gross)........... 316 440 250
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 350 310 181
90.00 Outlays........................... 316 440 250
---------------------------------------------------------------------------

Non-Defense Environmental Management activities, previously funded
in two appropriations, Non-Defense Site Acceleration Completion and Non-
Defense Environmental Services, are now funded in the Non-Defense
Environmental Cleanup appropriation as a result of a budget
restructuring in 2006. The Non-Defense Environmental Cleanup program
includes funds to manage and clean up sites used for civilian energy
research, and non-defense related activities. Past activities related to
nuclear energy research and development resulted in radioactive,
hazardous, and mixed waste contamination that requires remediation,
stabilization, or some other type of action. The Budget displays the
cleanup program by site.

West Valley Demonstration Project.--Funding will focus on near-term
efforts for waste disposition, process building decontamination, removal
of non-essential facilities in the near-term, and development of the
Decommissioning Environmental Impact Statement. West Valley
Demonstration Project plans to achieve Interim End State completion in
2010.

Gaseous diffusion plants.--Funds surveillance and maintenance of
inactive facilities and the management of the uranium hexafluoride
cylinders at the East Tennessee Technology Park at Oak Ridge; Paducah,
Kentucky; and Portsmouth, Ohio sites. Also included are the construction
of two depleted uranium hexafluoride conversion facilities at Paducah
and Portsmouth, and the accelerated cleanup of the Gas Centrifuge
Enrichment Plant at Portsmouth.

Fast Flux Test Facility.--Funds the long-term surveillance and
maintenance, and eventual decontamination and decommissioning of the
Fast Flux Test Facility, operated from the 1960s through 1980s.

Small sites.--Funds cleanup, closure, and post-closure environmental
activities at a number of geographic sites across the nation, including
Argonne National Laboratory, Brookhaven National Laboratory, Energy
Technology Engineering Center, Inhalation Toxicology Laboratory, Moab,
and the Stanford Linear Accelerator Center. Some sites are associated
with other Department of Energy programs, particularly the Office of
Science, and will have continuing missions after EM completes the
cleanup. Others are in the final stages of cleanup and closure, or have
transitioned to post-closure activities.

[[Page 365]]

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0315-0-1-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.2 Other services.................... 77 69 40
25.3 Other purchases of goods and
services from Government
accounts........................ 2 2 1
25.4 Operation and maintenance of
facilities...................... 178 161 92
25.5 Research and development contracts 9 8 5
32.0 Land and structures............... 82 74 43
--------- --------- ----------
99.9 Total new obligations........... 348 314 181
---------------------------------------------------------------------------

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), $566,801,000, to remain available until
expended, of which $108,000,000 shall be derived by transfer from
``Clean Coal Technology'' and is available to continue a multi-year
project coordinated with the private sector for FutureGen, without
regard to the terms and conditions applicable to clean coal technology
projects: Provided, That the initial planning and research stages of the
FutureGen project shall include a matching requirement from non-Federal
sources of at least 20 percent of the costs: Provided further, That any
demonstration component of such project shall require a matching
requirement from non-Federal sources of at least 50 percent of the costs
of the component: Provided further, That of the amounts provided,
$73,000,000 (of which $58,000,000 shall be derived by transfer from
``Clean Coal Technology'') is available, after coordination with the
private sector, for a request for proposals for the Clean Coal Power
Initiative providing for competitively-awarded research, development,
and demonstration projects to reduce the barriers to continued and
expanded coal use: Provided further, That no project may be selected for
which sufficient funding is not available to provide for the total
project: Provided further, That if a Clean Coal Power Initiative
application selected after enactment of this legislation for negotiation
under this or any other Act in any fiscal year, is not awarded within
two years from the date the application was selected, negotiations shall
cease and the federal funds committed to the application shall be
retained by the Department for future coal-related research, development
and demonstration projects, except that the time limit may be extended
at the Secretary's discretion for matters outside the control of the
applicant, or if the Secretary determines that extension of the time
limit is in the public interest: Provided further, That the Secretary
may not delegate this responsibility for applications greater than
$10,000,000: Provided further, That financial assistance for costs in
excess of those estimated as of the date of award of original Clean Coal
Power Initiative financial assistance may not be provided in excess of
the proportion of costs borne by the Government in the original
agreement and shall be limited to 25 percent of the original financial
assistance: 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 as well as those
contained under the heading ``Clean Coal Technology'' in prior
appropriations: Provided further, That the Department may include
provisions for repayment of Government contributions to individual
projects in an amount up to the Government contribution to the project
on terms and conditions that are acceptable to the Department 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: 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. 7651n, and chapters 51, 52, and 60 of title 40 of the Code of
Federal Regulations: Provided further, That no part of the sum herein
made available shall be used for the field testing of nuclear explosives
in the recovery of oil and gas.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0213-0-1-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 President's coal research
initiative...................... 310 641 385
00.02 Other power systems............... 61 69 63
00.03 Oil and gas research and
development..................... 65 12
00.04 Program direction and management
support......................... 105 112 109
00.05 Environmental restoration......... 9 10 10
00.06 Cooperative research and
development ventures............ 6
00.07 Import/export authorizations...... 2 2
00.08 Plant and capital equipment....... 20
00.09 Advanced metallurgical process.... 8 1
00.11 Special recruitment program....... 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 587 848 568
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 601 601 311
22.00 New budget authority (gross)...... 581 558 567
22.10 Resources available from
recoveries of prior year
obligations..................... 6
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,188 1,159 878
23.95 Total new obligations............. -587 -848 -568
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 601 311 310
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 598 558 401
40.35 Appropriation permanently
reduced....................... -6
41.00 Transferred to other accounts... -11
42.00 Transferred from other accounts. 166
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 581 558 567
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 482 560 840
73.10 Total new obligations............. 587 848 568
73.20 Total outlays (gross)............. -503 -568 -566
73.45 Recoveries of prior year
obligations..................... -6
--------- --------- ----------
74.40 Obligated balance, end of year.. 560 840 842
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 230 223 227
86.93 Outlays from discretionary
balances........................ 273 345 339
--------- --------- ----------
87.00 Total outlays (gross)........... 503 568 566
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 581 558 567
90.00 Outlays........................... 503 568 566
---------------------------------------------------------------------------

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.--FutureGen is a $1 billion
project cost-shared with the private sector and international partners,
which will create the world's first fossil fuel fired, near-zero
atmospheric emissions, electricity and hydrogen producing power plant.
The Budget includes $108 million towards the Government's share for
FutureGen. The Budget provides $73 million for the Clean Coal Power
Initiative (CCPI), which conducts demonstration projects, cost-shared
between the government and industry. Other supporting coal activities
include: 1) technologies for advanced coal-fueled power systems,
including Integrated Gasification Combined Cycle, hydrogen turbine
technology and hydrogen

[[Page 366]]

separation technologies; 2) Sequestration R&D, which focuses on
greenhouse gas capture and sequestration; and 3) advanced research,
which through early concept research, bridges fundamental research and
engineering development. The Department will continue to increase
involvement of the private sector and academia to help conduct and
direct research toward the most critical challenges to coal use for
power generation in the United States.

Fuel cells.--Fuel cells focuses on fuel cell technology for
distributed and central power generation systems.

Oil and gas.--The Oil and Gas programs will effect an orderly
termination of activities. No additional funding is required for
termination.

Program direction and management support.--The program provides the
funding for all headquarters and field personnel and overhead expenses
in Fossil Energy and Clean Coal Technology. In addition, it provides
support for day-to-day project management functions. Within this
program, $2.3 million is proposed for the Alaska Natural Gas
Transportation Project Loan Guarantee program activities. Also included
is the Import/Export Authorization program which will continue
regulatory reviews and oversight of the transmission of natural gas
across the U.S. borders.

Environmental restoration.--DOE 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.

Object Classification (in millions of dollars)

11.1 Full-time permanent............. 58 67 62
11.3 Other than full-time permanent.. 2 2 2
11.5 Other personnel compensation.... 2 2 2
--------- --------- ----------
11.9 Total personnel compensation.. 62 71 66
12.1 Civilian personnel benefits....... 16 17 16
21.0 Travel and transportation of
persons......................... 4 3 3
23.3 Communications, utilities, and
miscellaneous charges........... 4 4 4
25.1 Advisory and assistance services.. 70 65 79
25.2 Other services.................... 28 28 28
25.3 Other purchases of goods and
services from Government
accounts........................ 8 8 8
25.4 Operation and maintenance of
facilities...................... 57 57 57
25.5 Research and development contracts 310 587 299
26.0 Supplies and materials............ 8 8 8
32.0 Land and structures............... 20
--------- --------- ----------
99.9 Total new obligations........... 587 848 568
---------------------------------------------------------------------------

Employment Summary

----------------------------------------------------------------------------
Identification code 89-0213-0-1-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 646 731 686
---------------------------------------------------------------------------

Naval Petroleum and Oil Shale Reserves

For expenses necessary to carry out naval petroleum and oil shale
reserve activities, including the hire of passenger motor vehicles,
$17,301,000, 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.

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 6 10
22.00 New budget authority (gross)...... 22 18 17
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 28 28 17
23.95 Total new obligations............. -18 -28 -17
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 10
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 22 18 17
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 10 13 22
73.10 Total new obligations............. 18 28 17
73.20 Total outlays (gross)............. -15 -19 -18
--------- --------- ----------
74.40 Obligated balance, end of year.. 13 22 21
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 9 11 11
86.93 Outlays from discretionary
balances........................ 6 8 7
--------- --------- ----------
87.00 Total outlays (gross)........... 15 19 18
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 22 18 17
90.00 Outlays........................... 15 19 18
---------------------------------------------------------------------------

Following the sale of the NPR-1 (Elk Hills) site mandated by the
National Defense Authorization Act for Fiscal Year 1996 (P.L. 104-106),
the most significant post-sale activity is the settlement of ownership
equity shares with the former unit partner, Chevron USA Inc. Additional
activities include environmental remediation and cultural resource
activities.

The account also funds activities at the Naval Petroleum Reserve 3
in Wyoming (Teapot Dome field), a stripper well oil field that the
Department is maintaining until it reaches its economic production
limit.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0219-0-1-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
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.. 9 15 7
25.2 Other services.................... 4 5 5
25.4 Operation and maintenance of
facilities...................... 1 4 1
--------- --------- ----------
99.9 Total new obligations........... 18 28 17
---------------------------------------------------------------------------

Employment Summary

Energy Conservation

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0215-0-1-272 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 16 5 5

[[Page 367]]

22.10 Resources available from
recoveries of prior year
obligations..................... 5
22.21 Unobligated balance transferred to
other accounts.................. -16
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5 5 5
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 5 5 5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 592
73.20 Total outlays (gross)............. -396
73.31 Obligated balance transferred to
other accounts.................. -191
73.45 Recoveries of prior year
obligations..................... -5
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 396
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 396
---------------------------------------------------------------------------

In 2005, congressional budget subcommittees implemented a number of
structural changes, including the unification of energy efficiency and
renewable energy programs under a single subcommittee. Appropriations in
2006 were enacted in accordance with this new integrated structure.
Consequently, programs formerly funded under Energy Conservation are now
funded through the Energy Supply and Conservation account.

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.), including the hire of passenger motor vehicles, the hire,
maintenance, and operation of aircraft, the purchase, repair, and
cleaning of uniforms, the reimbursement to the General Services
Administration for security guard services, $331,609,000, to remain
available until expended, of which $168,137,000 is for expansion of the
Strategic Petroleum Reserve.

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 12 18
22.00 New budget authority (gross)...... 207 155 332
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 219 173 332
23.95 Total new obligations............. -201 -173 -332
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 18
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 166 155 332
40.35 Appropriation permanently
reduced....................... -2
42.00 Transferred from other accounts. 43
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 207 155 332
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 80 119 119
73.10 Total new obligations............. 201 173 332
73.20 Total outlays (gross)............. -162 -173 -259
--------- --------- ----------
74.40 Obligated balance, end of year.. 119 119 192
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 150 85 183
86.93 Outlays from discretionary
balances........................ 12 88 76
--------- --------- ----------
87.00 Total outlays (gross)........... 162 173 259
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 207 155 332
90.00 Outlays........................... 162 173 259
---------------------------------------------------------------------------

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 intentional energy supply
disruptions and to take effective, coordinated action should an energy
supply disruption occur.

The 2008 Budget proposes to provide further insurance against oil
supply disruptions that could harm the U.S. economy by doubling
America's protection from the Strategic Petroleum Reserve (SPR) by
expanding it from its current size of 691 million barrels (MB) to 1.5
billion barrels. Expansion will begin immediately, with DOE using
balances in the SPR Oil account for the purchase of oil in 2007. Federal
royalty oil will also be used to fill the SPR in 2007 and 2008 to its
727 MB capacity.

The 2008 Budget proposes $168 million for construction of storage
facilities to begin expansion of oil storage facilities from 727 MB of
storage to 1.5 billion barrels of storage.

The account provides for ongoing storage site operations and
maintenance activities, planning activities, drawdown testing/readiness
of the Reserve, planning studies, and program administration.

The key measure of program performance is expressed as capability to
comply with Level 1 Technical and Performance Criteria. These criteria
are specifically 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 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
11.1 Personnel compensation: Full-time
permanent....................... 10 10 12
12.1 Civilian personnel benefits....... 3 3 3
21.0 Travel and transportation of
persons......................... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 4 4 3
25.1 Advisory and assistance services.. 5 5 5
25.2 Other services.................... 63 34 48
25.3 Other purchases of goods and
services from Government
accounts........................ 1 2
25.4 Operation and maintenance of
facilities...................... 115 115 258
--------- --------- ----------
99.9 Total new obligations........... 201 173 332
---------------------------------------------------------------------------

Employment Summary

SPR Petroleum Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0233-0-1-274 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program activity........... 1 589
--------- --------- ----------

[[Page 368]]

10.00 Total new obligations (object
class 25.2)................... 1 589
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 17 592 3
22.00 New budget authority (gross)...... 572
22.10 Resources available from
recoveries of prior year
obligations..................... 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 593 592 3
23.95 Total new obligations............. -1 -589
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 592 3 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

41.00 Transferred to other accounts... -43
Mandatory:

60.00 Appropriation................... 615
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 572
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 40 25 30
73.10 Total new obligations............. 1 589
73.20 Total outlays (gross)............. -12 -584
73.45 Recoveries of prior year
obligations..................... -4
--------- --------- ----------
74.40 Obligated balance, end of year.. 25 30 30
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 12
86.98 Outlays from mandatory balances... 12 572
--------- --------- ----------
87.00 Total outlays (gross)........... 12 584
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 572
90.00 Outlays........................... 12 584
---------------------------------------------------------------------------

This account provides for the acquisition, transportation, and
injection of petroleum into SPR. This account funds all SPR petroleum
inventory acquisitions, associated transportation costs, U.S. Customs
duties, terminal throughput charges, incremental drawdown costs, and
other related miscellaneous costs. In 2005, the Department filled the
Reserve to 700 million barrels, principally using royalty oil from
Federal offshore leases. The Petroleum Account also funds drawdown and
sales operations of the Reserve. In September 2005, funds were
transferred from the SPR Facilities Account to finance drawdown
operations associated with Hurricane Katrina. The funds were returned to
the SPR Facilities Account in 2006. DOE loaned 9.8 million barrels of
oil to refiners and sold 11 million barrels in response to the
hurricane. In 2007, DOE will use balances in the account to purchase
oil.

Energy Information Administration

For necessary expenses in carrying out the activities of the Energy
Information Administration, $105,095,000, to remain available until
expended.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0216-0-1-276 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Obligations by program activity... 86 87 105
--------- --------- ----------
10.00 Total new obligations........... 86 87 105
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 2
22.00 New budget authority (gross)...... 85 85 105
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 88 87 105
23.95 Total new obligations............. -86 -87 -105
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Discretionary:.................. 86 85 105
40.35 Appropriation................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 85 85 105
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Change in obligated balances...... 22 23 34
73.10 Total new obligations............. 86 87 105
73.20 Total outlays (gross)............. -84 -76 -100
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 23 34 39
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 60 60 74
86.93 Outlays from discretionary
balances........................ 24 16 26
--------- --------- ----------
87.00 Total outlays (gross)........... 84 76 100
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 85 85 105
90.00 Outlays........................... 84 76 100
---------------------------------------------------------------------------

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 program
designs, develops and maintains 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)

11.1 Full-time permanent............. 34 35 39
11.3 Other than full-time permanent.. 1 1 1
11.5 Other personnel compensation.... 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 36 37 41
12.1 Civilian personnel benefits....... 7 7 8
25.1 Consulting services--non-
Government contracts............ 1 1 1
25.2 Other services--service contracts. 26 26 37
25.3 Purchases of goods and services
from Government accounts........ 8 8 9
26.0 Supplies and materials............ 8 8 9
--------- --------- ----------
99.9 Total new obligations........... 86 87 105
---------------------------------------------------------------------------

Employment Summary

----------------------------------------------------------------------------
Identification code 89-0216-0-1-276 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 348 375 374
---------------------------------------------------------------------------

[[Page 369]]

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, $255,425,000, to remain
available until expended: Provided, That notwithstanding any other
provision of law, not to exceed $255,425,000 of revenues from fees and
annual charges, and other services and collections in fiscal year 2008
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 2008 so as to result in a final fiscal
year 2008 appropriation from the general fund estimated at not more than
$0.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0212-0-1-276 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
09.01 Energy infrastructure............. 166 167 187
09.02 Competitive markets............... 35 36 40
09.03 Enforcement....................... 23 24 28
--------- --------- ----------
09.99 Total reimbursable program...... 224 227 255
--------- --------- ----------
10.00 Total new obligations........... 224 227 255
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 9 5 5
22.00 New budget authority (gross)...... 220 227 255
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 229 232 260
23.95 Total new obligations............. -224 -227 -255
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 5 5 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 220 227 255
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 20 24 24
73.10 Total new obligations............. 224 227 255
73.20 Total outlays (gross)............. -220 -227 -253
--------- --------- ----------
74.40 Obligated balance, end of year.. 24 24 26
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 202 205 230
86.93 Outlays from discretionary
balances........................ 18 22 23
--------- --------- ----------
87.00 Total outlays (gross)........... 220 227 253
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.45 Offsetting collections (cash)
from: Offsetting governmental
collections (from non-Federal
sources)...................... -220 -227 -255
----------------------------------------------------------------------------

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

The Federal Energy Regulatory Commission (Commission) regulates key
interstate aspects of the electric power, natural gas, oil pipeline, and
hydropower industries. The Commission seeks to encourage competitive
markets whenever possible, assure access to abundant, reliable energy,
promote the development of a strong energy infrastructure, and prevent
market manipulation. Regulated businesses pay fees and charges
sufficient to recover the Government's full costs of operations.

On August 8, 2005, the Energy Policy Act of 2005 (EPAct 2005) was
signed into law. This law made fundamental changes in Commission
regulation by amending the major statutes implemented by the Commission:
the Federal Power Act (FPA); the Public Utility Regulatory Policies Act
(PURPA); the Public Utility Holding Company Act (PUHCA), the Natural Gas
Act (NGA); and the Natural Gas Policy Act (NGPA). As noted below, the
types of changes made by EPAct 2005 enhance the Commission's authority
to promote development of electric and natural gas infrastructure,
wholesale competition in the electric industry, electric and natural gas
market transparency, and consumer protections. EPAct 2005 imposed
several tasks and deadlines for Commission action including: mandatory
rulemaking requirements; mandatory reports, studies, or memoranda of
understanding (some in conjunction with other agencies); and required
consultations with other agencies (who have the lead) on rulemakings or
reports. EPAct 2005 also allows the Commission to undertake certain
discretionary rulemakings or generic actions. This request includes the
resources needed to continue implementing the Commission's increased
responsibilities under EPAct 2005.

Energy infrastructure.--The Commission seeks to promote the
development of a strong energy infrastructure to meet market and
operational demands. The Commission has two primary objectives in this
area: stimulate appropriate infrastructure development and maintain a
reliable and safe infrastructure.

The Commission determines rates for the interstate transportation of
natural gas and oil on the pipelines subject to the Commission's
jurisdiction and rates for the interstate transmission and wholesale
sales of electric energy. The Commission has authorized 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 respective
markets. The Commission has developed, and will continue to develop,
pricing policies and incentive mechanisms to encourage the development
of the Nation's energy infrastructure and to support competitive
markets. For example, the Commission now has guidelines for regional
transmission organizations (RTOs) operating organized electric markets
on providing long-term financial transmission rights. These guidelines
will increase long-term transmission price certainty in the organized
electricity markets and allow for new investments and other long-term
power supply arrangements. In addition, the Commission has issued a
final rule to offer incentives, where appropriate, for potential
investors to build electric transmission facilities. The final rule
seeks to bolster investment in the Nation's aging transmission
infrastructure, promote electric power reliability and lower costs for
consumers by reducing transmission congestion.

EPAct 2005 granted the Commission new regulatory authority to
promote an energy infrastructure that best serves the Nation's needs.
For example, the new law granted the Commission, for the first time,
siting authority to relieve congestion of certain interstate
transmission corridors when states withhold approval for more than one
year or do not have the authority to act on transmission proposals to
relieve congestion. While this new authority is more limited than the
Commission's gas pipeline siting authority, it should lower the
regulatory barriers to investment in the transmission grid. The
Commission has adopted rules on this new authority, and will work to
implement it in accordance with the specific criteria established in
EPAct 2005. Similarly, the Commission has adopted rules implementing its
new authority to grant market-based rates for natural gas storage and,
in November 2006, issued its first order granting such rates. With
regard to liquefied natural gas (LNG) import terminal facilities, EPAct
2005 clarified the Commission's exclusive jurisdiction to authorize such
facilities to continue developing much-needed LNG import terminal
facilities.

[[Page 370]]

The Commission will continue to ensure that landowner and
environmental concerns involving energy projects are properly addressed
and that the public interest is protected when proposed hydropower
projects are licensed or existing projects are relicensed, and when it
authorizes new natural gas facilities and services. The Commission
issues orders certificating the construction and operation of interstate
natural gas pipelines and storage facilities, and authorizing LNG import
terminal facilities. EPAct 2005 adopts procedures that better coordinate
the review process for natural gas infrastructure, allowing final
decisions to be rendered in a timelier manner. Specifically, the
Commission is designated as the lead agency for the purpose of
coordinating all applicable authorizations and performing the
environmental review on the siting and authorization of LNG import
terminal facilities, hydropower facilities, and interstate natural gas
pipelines and storage facilities. In its role as the lead agency, the
Commission establishes a schedule that all other permitting agencies
must follow, and maintains one consolidated record to be used for any
judicial reviews of any actions taken. In support thereof, the
Commission is in the process of implementing integrated licensing and
pre-filing processes and interagency agreements facilitating hydropower
licensing, pipeline and storage certification, and LNG facility
authorization.

The Commission issues preliminary permits, exemptions, licenses, and
relicenses for nonfederal hydroelectric projects, enforces their terms
and conditions, and performs dam safety inspections. It regulates over
1,700 non-federal dams, which supply about five 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. EPAct 2005 grants tax
incentives for hydropower developed at dams existing prior to enactment
of the law. This will have the potential to increase infrastructure
through the construction of generating facilities at non-hydropower dams
and the addition of new facilities at existing hydropower projects. In
2006, the Commission continued to coordinate closely with
representatives of all agencies having a role in natural gas safety and
security matters, including the U.S. Coast Guard, the Department of
Transportation, the Department of Homeland Security, the Federal Bureau
of Investigation (FBI), and state and local law enforcement. In
addition, the Commission placed increased emphasis on plant security
measures and improvements in conducting biennial inspections of
jurisdictional LNG facilities and in implementing an agreement to
coordinate security and safety reviews of these facilities with the
Coast Guard and the Office of Pipeline Safety. In the hydropower
program, the Commission continued to emphasize its Hydropower Security
Program by leading interagency coordination on federal infrastructure,
conducting workshops on dam site security and emergency action planning,
reviewing over 1,000 Commission-required vulnerability and security
assessments of dams, and monitoring the implementation of security
upgrades.

The Commission's electric grid reliability efforts are bolstered by
its new authority under EPAct 2005. For example, the Commission will
oversee the development and enforcement of mandatory grid-reliability
standards as well as enforcement procedures for violations of those
standards. EPAct 2005 required the Commission to certify an electric
reliability organization (ERO) that will propose mandatory reliability
standards for all users, owners and operators of the bulk power system.
The Commission has already certified the ERO and proposed to approve and
make mandatory 83 of the 107 initial reliability standards submitted by
the ERO for Commission approval.

The Commission's continued work to promote electric grid reliability
will focus on: 1) overseeing the development and enforcement of
mandatory electric reliability standards to protect the bulk power
system; 2) addressing and improving infrastructure security; and 3)
coordinating efforts with Canada and Mexico.

Competitive markets.--The Commission believes that competition,
combined with effective regulation, is the best national policy for
wholesale markets. To that end, the Commission develops rules that
encourage fair and efficient competitive markets and works to prevent
the accumulation and exercise of market power.

The Commission continues to promote market transparency and
promulgate and approve clear market rules. Order No. 888 set the
foundation upon which to attain competitive electric markets ten years
ago. The industry that existed when Order No. 888 was issued has changed
considerably. In May 2006, the Commission proposed reforms to its open
access transmission tariff to ensure that it continues to remedy undue
discrimination in the provision of transmission services. For wholesale
power markets, the Commission has also proposed rules to codify and
improve its market-based ratemaking policy. The Commission routinely
places restrictions on affiliate power sales at market-based rates that
may affect ``captive customers.'' Furthermore, when authorizing market-
based rates, the Commission requires entities to submit triennial market
analyses and electronic quarterly reports. Also in 2006, the Commission
issued a staff report to Congress on demand response in electricity
markets.

Also with the enactment of EPAct 2005, the Commission has additional
authority to protect customers. For example, EPAct 2005 repealed the
substantive restrictions imposed under PUHCA 1935, but enacted new
statutory provisions, PUHCA 2005, giving the Commission new accounting
and record keeping authorities over holding companies and their
associated companies. In October 2006, the Commission adopted uniform
accounting, reporting and record keeping requirements for holding
companies and centralized service companies within holding company
systems. These new requirements will provide greater accounting
transparency and help protect ratepayers from the pass-through of
improper service company costs. In addition, the Commission will use its
strengthened merger and corporate review authority to continue to ensure
that mergers and consolidations will not harm the public interest. To
further support competitive markets, EPAct 2005 also reforms the PURPA
treatment of qualifying facilities, eliminating certain ownership
restrictions and allowing the Commission to terminate mandatory purchase
obligations in certain circumstances. The Commission has adopted rules
implementing these statutory changes.

Enforcement.--Competitive markets can succeed only when competition
is combined with effective regulation. The Commission has adjusted its
regulatory policies to meet the dramatic changes that have occurred in
both the natural gas and electric industries. The Commission seeks to
detect violations quickly, publicize misconduct where appropriate, and
take prompt action to prevent future misconduct. The Commission can
identify violations by many methods, including review of market
information required to be filed by market participants; investigations
of significant price spikes or market anomalies; periodic audits of
compliance with Commission tariffs, rules and regulations; referrals
from RTO and independent system operator (ISO) market monitors; tips and
complaints from the public and market participants; and self-reports of
violations by companies. (The Commission's October 2005 Enforcement
Policy Statement encourages companies to self-report violations to
mitigate remedies).

[[Page 371]]

It is important that the Commission understands market dynamics,
detects problems or issues in energy markets early, prevents violations
of its rules, and enforces compliance with the laws under its
jurisdiction. Perhaps most important, the Commission must ensure that
jurisdictional utilities have effective internal monitoring and
compliance programs in place to help assure that they are following
established Commission rules and regulations. Commission oversight must
then provide an independent and external check to ensure each compliance
program is adequate, and to periodically audit the compliance with
Commission's rules, regulations, and other statutory requirements.

To help market participants and regulated entities comply with the
Commission's rules, the Commission works with stakeholders to explain
the intent and requirements of its rules and the laws it administers. In
2006, the Commission adopted rules detailing broad prohibitions on
energy market manipulation. The Commission has also adopted procedures
to allow companies to challenge the findings of operational audits
before a final order is issued. The Commission also has initiated a ``no
action letter'' process to permit market participants to seek advice on
whether staff would recommend action against specific transactions in
light of the relevant laws and policies. Such initiatives will simplify
the Commission's rules regarding market manipulation and provide greater
clarity and regulatory certainty.

The Commission's enforcement tools were greatly reinforced when
EPAct 2005 conferred expanded authority which provided, for the first
time, penalty authority for violations of the NGA and all of Part II of
the FPA. It further provided or increased (for violations of the NGPA)
the level of penalties to $1 million each day for the duration of the
violation. Penalties of this magnitude also are applicable, pursuant to
EPAct 2005 amendments to the FPA and NGA, to any entity (not just
companies traditionally subject to the Commission's jurisdiction) that
manipulates wholesale gas or electric markets by engaging in fraud or
deceit in connection with jurisdictional transactions. Armed with this
expanded authority, which is comparable to that of other federal
regulatory bodies, the Commission intends to create an even stronger and
more effective compliance and enforcement program to protect the public
interest.

Management initiatives.--The Commission has initiatives underway
and processes in place to support its three strategic goals and the
President's Management Agenda. These activities, including alternative
dispute resolution and litigation, and the effective management of human
capital, agency resources, and information technology help the
Commission work more efficiently both within and across program areas.
The Commission also relies on various methods to communicate its
policies and actions to the public. Open lines of communication with
affected parties are critical for effective functioning of the
Commission's operations.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0212-0-1-276 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
99.0 Reimbursable obligations........ 223 227 255
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 224 227 255
---------------------------------------------------------------------------

Employment Summary

Clean Coal Technology

(rescission and transfer)

Of the funds made available under this heading for obligation in
prior years, $149,000,000 are cancelled.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0235-0-1-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 86 71 66
22.00 New budget authority (net)........ -20 -5 -58
22.10 Resources available from
recoveries of prior year
obligations..................... 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 71 66 8
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 71 66 8
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 15
40.36 Unobligated balance permanently
reduced....................... -20 -20 -149
40.36 Unobligated balance deferred to
future years.................. -257 -257
41.00 Transferred to other accounts... -166
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. -277 -262 -315
55.00 Funds becoming available from
prior year deferrals.......... 257 257 257
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... -20 -5 -58
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 17 11 11
73.20 Total outlays (gross)............. -1
73.45 Recoveries of prior year
obligations..................... -5
--------- --------- ----------
74.40 Obligated balance, end of year.. 11 11 11
----------------------------------------------------------------------------

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

Net budget authority and outlays:
89.00 Budget authority.................. -20 -5 -58
90.00 Outlays........................... 1
---------------------------------------------------------------------------

The Budget proposes to cancel $149 million in prior-year balances
and, in addition, transfer $166 million in prior-year balances to the
Fossil Energy Research and Development Program. These balances are no
longer needed to complete active projects in the Clean Coal Technology
program. The Budget proposes to redirect these funds for work on the
FutureGen project ($108 million) to develop a coal-fueled, near-zero
atmospheric emissions electricity and hydrogen generation plant and to
the Clean Coal Power Initiative ($58 million).

Alternative Fuels Production

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5180-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
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..................
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 Department of Energy
Federal loan guarantee, the Department acquired

[[Page 372]]

ownership of the Great Plains Coal Gasification Project 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.

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 and related contracts and agreements which
transferred the facility to the private sector. Remaining outstanding
obligations are for carrying out contractual obligations to the
termination of the contract in 2009. The largest recent 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. The Federal revenue
sharing receipts are based on this review and analysis.

Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum
Research Fund

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5523-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
--------- --------- ----------
01.99 Balance, start of year............
Receipts:
02.20 OCS receipts, Ultra-deepwater and
unconventional natural gas and
other petroleum research fund... 50 50
02.21 OCS receipts, Ultra-deepwater and
unconventional natural gas and
other petroleum research fund--
legislative proposal subject to
PAYGO........................... -50
--------- --------- ----------
02.99 Total receipts and collections.. 50
--------- --------- ----------
04.00 Total: Balances and collections... 50
Appropriations:
05.00 Ultra-deepwater and unconventional
natural gas and other petroleum
research fund................... -50 -50
05.01 Ultra-deepwater and unconventional
natural gas and other petroleum
research fund--legislative
proposal subject to PAYGO....... 50
--------- --------- ----------
05.99 Total appropriations............ -50
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5523-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Ultra-deepwater................... 17 17
00.02 Unconventional resources.......... 16 16
00.03 Technology challenges of small
producers....................... 4 4
00.04 Consortium program administration
funds........................... 4 4
00.05 NETL in-house..................... 7 7
00.06 DOE oversight..................... 2 2
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 50 50
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Mandatory:

60.20 Appropriation (special fund).... 50 50
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 30
73.10 Total new obligations............. 50 50
73.20 Total outlays (gross)............. -20 -40
--------- --------- ----------
74.40 Obligated balance, end of year.. 30 40
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 20 20
86.98 Outlays from mandatory balances... 20
--------- --------- ----------
87.00 Total outlays (gross)........... 20 40
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 50 50
90.00 Outlays........................... 20 40
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2006 actual 2007 est. 2008 est.
Enacted/requested:
Budget Authority............ 50 50
Outlays..................... 20 40
Legislative proposal, subject to
PAYGO:
Budget Authority............ -50
Outlays..................... -20

Total:
Budget Authority............ 50
Outlays..................... 20 20

The Energy Policy Act of 2005 (Public Law 109-58) created a
mandatory Ultra-Deepwater and Unconventional Natural Gas and Other
Petroleum Research program beginning in 2007. The program would be
funded from Federal revenues from oil and gas leases. The Budget
proposes to cancel the program through a future legislative proposal.

Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum
Research Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5523-4-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Ultra-deepwater................... -17
00.02 Unconventional resources.......... -16
00.03 Technology challenges of small
producers....................... -4
00.04 Consortium program administration
funds........................... -4
00.05 NETL in-house..................... -7
00.06 DOE oversight..................... -2
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... -50
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Mandatory:

60.20 Appropriation (special fund).... -50
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year..
73.10 Total new obligations............. -50
73.20 Total outlays (gross)............. 20
--------- --------- ----------
74.40 Obligated balance, end of year.. -30
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... -20
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -50
90.00 Outlays........................... -20
---------------------------------------------------------------------------

[[Page 373]]

Elk Hills School Lands Fund

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5428-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 82
--------- --------- ----------
01.99 Balance, start of year............ 82
Appropriations:
05.00 Elk Hills school lands fund....... -82
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5428-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Elk Hills school lands fund....... 84
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 84
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 84 2
23.95 Total new obligations............. -84
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 2 2
40.20 Appropriation (special fund).... 82
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 84 2
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 84
73.20 Total outlays (gross)............. -84 -2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 84 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 84 2
90.00 Outlays........................... 84 2
---------------------------------------------------------------------------

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 a 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 unless the seventh payment needs to be deferred in
whole or in part due to the equity finalization schedule. Under the
settlement agreement, $300 million has been paid to the State of
California. There is no request for funding in 2008. The timing and
levels of any future budget request are dependent on the schedule and
results of the equity finalization process.

Payments to States Under Federal Power Act

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5105-0-2-806 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
--------- --------- ----------
01.99 Balance, start of year............
Receipts:
02.60 Licenses under Federal Power Act
from public lands and national
forests, Payment to States (37
1/2%)........................... 3 3 3
--------- --------- ----------
04.00 Total: Balances and collections... 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)

----------------------------------------------------------------------------
Identification code 89-5105-0-2-806 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
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:
73.10 Total new obligations............. 3 3 3
73.20 Total outlays (gross)............. -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, operation, and management activities pursuant to the Energy
Policy and Conservation Act, $5,325,000, to remain available until
expended.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5369-0-2-274 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Northeast home heating oil reserve 5 7 5
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 5 7 5
----------------------------------------------------------------------------

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

[[Page 374]]

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 5 5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 5 5 6
73.10 Total new obligations............. 5 7 5
73.20 Total outlays (gross)............. -5 -6 -9
--------- --------- ----------
74.40 Obligated balance, end of year.. 5 6 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 4 4
86.93 Outlays from discretionary
balances........................ 5 2 5
--------- --------- ----------
87.00 Total outlays (gross)........... 5 6 9
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5 5
90.00 Outlays........................... 5 6 9
---------------------------------------------------------------------------

The Northeast Home Heating Oil Reserve assures a home heating oil
supply for the Northeast States during times of very low inventories and
significant threats to immediate supply. Two million barrels of heating
oil will protect the Northeast against a disruption for 10 days, the
time required for ships to carry heating oil from the Gulf of Mexico to
New York Harbor.

Contracts for the storage, operation and maintenance of the reserve
were renewed on October 1, 2006. Contracts were awarded to Amerada Hess
(for 1,000,000 barrels in New York harbor) to Morgan Stanley (for
500,000 barrels in New Haven, CT), and to Motiva (for 250,000 barrels in
New Haven, CT and 250,000 barrels in Providence, RI).

Nuclear Waste Disposal

For nuclear waste disposal activities to carry out the purposes of
the Nuclear Waste Policy Act of 1982, Public Law 97-425, as amended (the
``Act''), including the acquisition of real property or facility
construction or expansion, $202,454,000, to remain available until
expended, and to be derived from the Nuclear Waste Fund: Provided, That
of the funds made available in this Act for Nuclear Waste Disposal,
$2,500,000 shall be provided to the State of Nevada solely for
expenditures, other than salaries and expenses of State employees, to
conduct scientific oversight responsibilities and participate in
licensing activities pursuant to the Act: Provided further, That
notwithstanding the lack of a written agreement with the State of Nevada
under section 117(c) of the Nuclear Waste Policy Act of 1982, Public Law
97-425, as amended, not less than $1,200,000 shall be provided to Nye
County, Nevada, for on-site oversight activities under section 117(d) of
that Act: Provided further, That $4,000,000 shall be provided to
affected units of local government, as defined in the Act, to conduct
appropriate activities and participate in licensing activities: Provided
further, That 7.5 percent of the funds provided shall be made available
to affected units of local government in California with the balance
made available to affected units of local government in Nevada for
distribution as determined by the Nevada units of local government:
Provided further, That notwithstanding the provisions of chapters 65 and
75 of title 31, United States Code, the Department shall have no
monitoring, auditing or other oversight rights or responsibilities over
amounts provided to affected units of local government under this
heading: Provided further, That the funds for the State of Nevada shall
be made available solely to the Nevada Division of Emergency Management
by direct payment and units of local government by direct payment:
Provided further, That within 90 days of the completion of each Federal
fiscal year, the Nevada Division of Emergency Management and the
Governor of the State of Nevada shall provide certification to the
Department of Energy that all funds expended from such payments have
been expended for activities authorized by the Act and this Act:
Provided further, That failure to provide such certification shall cause
such entity to be prohibited from any further funding provided for
similar activities: Provided further, That none of the funds herein
appropriated may be: (1) used directly or indirectly to influence
legislative action, except for normal and recognized executive-
legislative communications, 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 inconsistent with
the restrictions contained in this Act: Provided further, That all
proceeds and recoveries realized by the Secretary in carrying out
activities authorized by the Act, including but not limited to, any
proceeds from the sale of assets, shall be available without further
appropriation and shall remain available until expended: Provided
further, That no funds provided in this Act may be used to pursue
repayment or collection of funds provided in any fiscal year to affected
units of local government for oversight activities that had been
previously approved by the Department of Energy, or to withhold payment
of any such funds.

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5227-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 17,447 18,523 19,989
Adjustments:
01.90 Adjustments....................... -69
--------- --------- ----------
01.99 Balance, start of year............ 17,378 18,523 19,989
Receipts:
02.20 Nuclear waste disposal fund....... 752 760 770
02.40 Earnings on investments, Nuclear
waste disposal fund............. 542 892 954
--------- --------- ----------
02.99 Total receipts and collections.. 1,294 1,652 1,724
--------- --------- ----------
04.00 Total: Balances and collections... 18,672 20,175 21,713
Appropriations:
05.00 Nuclear waste disposal............ -100 -141 -202
05.01 Nuclear waste disposal............ 1
05.02 Salaries and expenses............. -46 -41 -37
05.03 Salaries and expenses............. -4 -4 -4
--------- --------- ----------
05.99 Total appropriations............ -149 -186 -243
--------- --------- ----------
07.99 Balance, end of year.............. 18,523 19,989 21,470
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5227-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Nuclear waste disposal fund....... 69 76 128
00.02 Program direction................. 73 75 90
00.03 Inegrated spent fuel recycling.... 5
--------- --------- ----------
10.00 Total new obligations........... 142 156 218
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 24 31 16
22.00 New budget authority (gross)...... 149 141 202
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 173 172 218
23.95 Total new obligations............. -142 -156 -218
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 31 16
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 50
40.20 Appropriation (special fund).... 100 141 202
40.35 Appropriation permanently
reduced....................... -1
40.37 Appropriation temporarily
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 148 141 202
58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 149 141 202
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 263 202 287
73.10 Total new obligations............. 142 156 218
73.20 Total outlays (gross)............. -203 -71 -172
--------- --------- ----------

[[Page 375]]

74.40 Obligated balance, end of year.. 202 287 333
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 149 71 101
86.93 Outlays from discretionary
balances........................ 54 71
--------- --------- ----------
87.00 Total outlays (gross)........... 203 71 172
----------------------------------------------------------------------------

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.................. 148 141 202
90.00 Outlays........................... 202 71 172
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 33,549 36,482 36,593
92.02 Total investments, end of year:
Federal securities: Par value... 36,482 36,593 38,296
---------------------------------------------------------------------------

The Administration's legislative proposal, The Nuclear Fuel
Management and Disposal Act, lays a solid foundation for America's
future energy security by providing stability, clarity, and
predictability to the Yucca Mountain repository project. The proposed
legislation will facilitate the Department's ability to access the
Nuclear Waste Fund, which will help ensure adequate and consistent
funding needed to support repository construction and operation.

The Budget for the Office of Civilian Radioactive Waste Management
provides $494.5 million for the 2008 activities. This funding is
required to implement the Federal policy for permanent geologic disposal
of commercial spent nuclear fuel and high-level radioactive waste
resulting from the Nation's commercial reactors and atomic energy
defense activities. A review of the program resulted in a canistered
approach to fuel handling, and that will mean a simpler and safer
operation of the repository and improved operations and performance.
This path forward will offer the program increased opportunities for
improving the quality of its facilities, while meeting its contractual
obligations to accept waste at the earliest practical time following
licensing by the Nuclear Regulatory Commission.

2008 represents a critical juncture in the Yucca Mountain Repository
Project. A considerable share of the work planned is essential to lay
the foundation for a successful repository program by moving forward
with the repository design and completion and submission of the license
application not later than June 30, 2008. DOE activities are premised on
meeting Nuclear Regulatory Commission requirements and obtaining any
necessary regulatory approvals. Investments on four broad fronts in 2008
are required for the project to be able to dispose of 70,000 tons of
Spent Nuclear Fuel (SNF) and High Level Waste (HLW) that is currently
being stored at 122 sites in 39 states. Success is dependent on adequate
investment and progress in the following areas:
(1) Development of a license application for submittal to the
Nuclear Regulatory Commission (NRC) based on a safer and simpler
approach to handling SNF and operating the repository, otherwise
known as the clean and canistered approach. Development and
subsequent NRC approval of the license will give the Department the
authorization to operate Yucca Mountain and dispose of waste.
(2) Development of a transportation infrastructure to move the
waste from where it is today, safely and securely to the repository
for disposal. Without an adequate transportation system there is no
credible way for the Department to transport waste to the repository
site for disposal.
(3) Improvement of an aging site infrastructure to ensure
worker, regulator, and visitor safety, which will become a safety
issue if action is not taken.
(4) Development of a culture expected of a NRC licensee.
Consistent with the Institute for Nuclear Powers Operators (INPO)
and NRC guidance, develop a culture in which the organization's
values and behaviors serve to make nuclear safety the overriding
priority.

The Administration is committed to ensuring the environmentally
sound and safe disposal of the Nation's radioactive waste.

Object Classification (in millions of dollars)

Personnel compensation:
11.1 Full-time permanent........... 21 23 25
11.3 Other than full-time permanent 2 2 2
11.5 Other personnel compensation.. 2 2 2
--------- --------- ----------
11.9 Total personnel compensation.. 25 27 29
12.1 Civilian personnel benefits..... 28 28
21.0 Travel and transportation of
persons....................... 5 5 6
23.2 Rental payments to others....... 1 5 6
25.1 Advisory and assistance services 44 40 75
25.2 Other services.................. 1 1 2
25.3 Other purchases of goods and
services from Government
accounts...................... 6 6 7
25.4 Operation and maintenance of
facilities.................... 40 20
31.0 Equipment....................... 1 6 7
41.0 Grants, subsidies, and
contributions................. 18 38 38
--------- --------- ----------
99.0 Direct obligations............ 141 156 218
99.0 Reimbursable obligations.......... 1
--------- --------- ----------
99.9 Total new obligations........... 142 156 218
---------------------------------------------------------------------------

Employment Summary

----------------------------------------------------------------------------
Identification code 89-5227-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 199 244 244
---------------------------------------------------------------------------

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, as amended, and
title X, subtitle A, of the Energy Policy Act of 1992, $573,509,000, to
be derived from the Fund, to remain available until expended, of which
$20,000,000 shall be available in accordance with title X, subtitle A,
of the Energy Policy Act of 1992.

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5231-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 3,831 4,120 4,441
--------- --------- ----------
01.99 Balance, start of year............ 3,831 4,120 4,441
Receipts:
02.40 Earnings on investments,
Decontamination and
decommissioning fund............ 194 212 222
02.41 General fund payment--Defense,
Decontamination and
decommissioning fund............ 446 452 463
02.60 Assessments, Decontamination and
decommissioning fund............ 205 213
--------- --------- ----------
02.99 Total receipts and collections.. 845 877 685
--------- --------- ----------
04.00 Total: Balances and collections... 4,676 4,997 5,126
Appropriations:
05.00 Uranium enrichment decontamination
and decommissioning fund........ -562 -556 -574
05.01 Uranium enrichment decontamination
and decommissioning fund........ 6
--------- --------- ----------
05.99 Total appropriations............ -556 -556 -574
--------- --------- ----------

[[Page 376]]

07.99 Balance, end of year.............. 4,120 4,441 4,552
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5231-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Uranium enrichment D&D activities. 536 536 554
00.02 Uranium/thorium reimbursement..... 20 20 20
--------- --------- ----------
10.00 Total new obligations........... 556 556 574
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 556 556 574
23.95 Total new obligations............. -556 -556 -574
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... 562 556 574
40.37 Appropriation temporarily
reduced....................... -6
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 556 556 574
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 83 136 166
73.10 Total new obligations............. 556 556 574
73.20 Total outlays (gross)............. -503 -526 -569
--------- --------- ----------
74.40 Obligated balance, end of year.. 136 166 171
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 433 389 402
86.93 Outlays from discretionary
balances........................ 70 137 167
--------- --------- ----------
87.00 Total outlays (gross)........... 503 526 569
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 556 556 574
90.00 Outlays........................... 503 526 569
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 3,891 4,228 4,549
92.02 Total Investments, end of year:
Federal securities: Par Value... 4,228 4,549 4,661
---------------------------------------------------------------------------

Decontamination and decommissioning activities.--Funds projects to
decontaminate, decommission, and remediate the sites and facilities of
the gaseous diffusion plants at Portsmouth, Ohio; Paducah, Kentucky; and
East Tennessee Technology Park, Oak Ridge, Tennessee.

Uranium/thorium licensee reimbursement.--Provides funds to reimburse
licensees for the Federal Government share of the cost of cleanup of
uranium and thorium processing sites.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5231-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.2 Other services.................... 177 177 183
25.4 Operation and maintenance of
facilities...................... 378 378 390
41.0 Grants, subsidies, and
contributions................... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 556 556 574
---------------------------------------------------------------------------

Uranium Sales and Remediation

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5530-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
--------- --------- ----------
01.99 Balance, start of year............
Receipts:
02.20 Receipts from uranium sales and
remediation..................... 125
--------- --------- ----------
04.00 Total: Balances and collections... 125
Appropriations:
05.00 Uranium sales and remediation..... -125
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5530-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Uranium remediation............... 24 101
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 24 101
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 101
22.00 New budget authority (gross)...... 125
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 125 101
23.95 Total new obligations............. -24 -101
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 101
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... 125
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 22 23
73.10 Total new obligations............. 24 101
73.20 Total outlays (gross)............. -2 -100 -23
--------- --------- ----------
74.40 Obligated balance, end of year.. 22 23
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2
86.93 Outlays from discretionary
balances........................ 100 23
--------- --------- ----------
87.00 Total outlays (gross)........... 2 100 23
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 125
90.00 Outlays........................... 2 100 23
---------------------------------------------------------------------------

The Energy and Water Development Appropriations Act for 2006
provided the Department of Energy authority to barter, transfer, or sell
uranium and to use any proceeds, without fiscal year limitation, to
remediate contaminated uranium inventories held by the Secretary of
Energy.

Isotope Production and Distribution Program Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-4180-0-3-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
09.01 Isotope production and
distribution.................... 24 16 16
--------- --------- ----------
10.00 Total new obligations........... 24 16 16
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 8 10 10
22.00 New budget authority (gross)...... 26 16 16
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 34 26 26
23.95 Total new obligations............. -24 -16 -16
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 10 10 10
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 26 16 16
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 7 11 11
73.10 Total new obligations............. 24 16 16

[[Page 377]]

73.20 Total outlays (gross)............. -20 -16 -16
--------- --------- ----------
74.40 Obligated balance, end of year.. 11 11 11
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 20 16 16
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -15 -16 -16
88.40 Non-Federal sources........... -11
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -26 -16 -16
----------------------------------------------------------------------------

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

The charter of the 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 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Reimbursable obligations:
25.1 Advisory and assistance services.. 3 3 3
25.2 Other services.................... 1 1 1
25.4 Operation and maintenance of
facilities...................... 18 10 10
32.0 Land and structures............... 2 2 2
--------- --------- ----------
99.9 Total new obligations........... 24 16 16
---------------------------------------------------------------------------

Title 17 Innovative Technology Loan Guarantee Program

Subject to the Federal Credit Reform Act of 1990, as amended, during
fiscal year 2008 commitments to guarantee loans under Title XVII of the
Energy Policy Act of 2005 shall not exceed a total principal amount, any
part of which is to be guaranteed, of $9,000,000,000: Provided, That
pursuant to section 1702(b)(2) of the Act, no appropriations are
available to pay the subsidy cost of such guarantees: Provided further,
That the source of payments received from borrowers for the subsidy cost
shall not be a loan or other debt obligation that is made or guaranteed
by the federal government.

In addition, for necessary administrative expenses to carry out this
Loan Guarantee Program, $8,390,000, to remain available until expended:
Provided, That fees collected pursuant to section 1702(h) shall be
credited as offsetting collections to this account: Provided further,
That any such fees collected shall not be available until appropriated.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0208-0-1-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.09 Administrative expenses........... 8
--------- --------- ----------
10.00 Total new obligations........... 8
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 8
23.95 Total new obligations............. -8
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 8
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 8
73.20 Total outlays (gross)............. -8
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 8
----------------------------------------------------------------------------

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

Memorandum (non-add) entries:
94.01 Unavailable balance, start of
year: Offsetting collections....
94.02 Unavailable balance, end of year:
Offsetting collections..........
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0208-0-1-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Title 17 loan guarantees.......... 9,000
--------- --------- ----------
215999Total loan guarantee levels....... 9,000
Guaranteed loan subsidy (in percent):
232001Title 17 loan guarantees.......... 0.00
--------- --------- ----------
232999Weighted average subsidy rate..... 0.00
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 8
3590 Outlays from new authority........ 8
---------------------------------------------------------------------------

The Office of Loan Guarantees will consider and coordinate
Departmental action on all loan guarantee applications submitted to the
Department of Energy in compliance with Title XVII of the Energy Policy
Act of 2005. Section 1703 of that Act authorizes the Department to
provide loan guarantees for renewable energy systems, advanced nuclear
facilities, coal gasification, carbon sequestration, energy efficiency,
and many other types of projects. These projects must avoid, reduce, or
sequester air pollutants or anthropogenic emissions of greenhouse gases;
employ new or significantly improved technologies compared to commercial
technologies in service in the United States at the time the guarantee
is issued; and offer a reasonable prospect of repayment of the principal
and interest on the guaranteed obligation. In the near future, the
Department will propose regulations for this program that will be
finalized after an opportunity for public review and comment.

The Budget proposes a 2008 loan volume limitation of $9 billion. Of
this amount, DOE will seek to guarantee approximately $4 billion in
loans for central power generation facilities (for example, nuclear
facilities or carbon sequestration optimized coal power plants), $4
billion in loans for projects that promote biofuels and clean
transportation fuels; and $1 billion in loans for projects using new
technologies for electric transmission facilities or renewable power
generation systems. Precisely how any authorized loan guarantee
authority would be allocated, however, ultimately would depend on the
merits and benefits of particular project proposals and their compliance
with statutory and regulatory requirements.

If, in appropriations acts for 2007, Congress authorizes the $2
billion in loan guarantee authority set forth in the Solicitation for
Pre-Applications that the Department issued in August 2006, the 2008
proposed loan volume limitation would be reduced by that amount.

Because DOE has not yet evaluated the potential subsidy costs for
any projects that might be eligible for Title XVII loan guarantees, the
2008 Budget reflects placeholder estimates for borrower paid loan
guarantee subsidy costs, based

[[Page 378]]

on an illustrative portfolio. These estimates are not related to any
specific project proposals.

The Office of Loan Guarantees will centralize loan guarantee
services for the Department to ensure all processes and criteria are
applied uniformly in accordance with established requirements,
procedures and guidelines. The Department requests $8.3 million in
funding in 2008 to run the Office and support personnel and associated
costs. To ensure that the Department meets statutory requirements
regarding loan guarantee activities, program funding also will support
the procurement of outside expertise in areas such as finance and
commercial market assessment.

As required by the Federal Credit Reform Act of 1990, this account
records, for this program, the subsidy costs associated with the loan
guarantees committed in 1992 and beyond (including modifications of
direct loans or loan guarantees that resulted from obligations or
commitments in any year), as well as administrative expenses of this
program. The subsidy amounts are estimated on a present value basis; the
administrative expenses are estimated on a cash basis.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0208-0-1-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
11.1 Personnel compensation: Full-time
permanent....................... 1
23.3 Communications, utilities, and
miscellaneous charges........... 1
25.2 Other services.................... 6
--------- --------- ----------
99.9 Total new obligations........... 8
---------------------------------------------------------------------------

Employment Summary

----------------------------------------------------------------------------
Identification code 89-0208-0-1-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 8
---------------------------------------------------------------------------

Title 17 Innovative Technology Guaranteed Financing

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-4577-0-3-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 1,913
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1,913
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 1,886
69.00 Offsetting collections (cash). 27
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 1,913
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.25 Interest on uninvested funds.. -27
88.40 Non-Federal sources........... -1,886
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -1,913
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -1,913
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-4577-0-3-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 9,000
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 9,000
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........
2231 Disbursements of new guaranteed
loans........................... 3,620
2251 Repayments and prepayments........
2263 Adjustments: Terminations for
default that result in claim
payments........................
--------- --------- ----------
2290 Outstanding, end of year........ 3,620
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 2,896
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from loan guarantees committed in 1992 and beyond (including
modifications of loan guarantees that resulted from commitments in any
year). The amounts in this account are a means of financing and are not
included in the budget totals.

Trust Funds

Advances for Cooperative Work

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-8575-0-7-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 4 1 1
73.20 Total outlays (gross)............. -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 3
----------------------------------------------------------------------------

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

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

Operation and Maintenance, Alaska Power Administration

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0304-0-1-271 2006 actual 2007 est. 2008 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

[[Page 379]]

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.

All Alaska activities of APA, including the Juneau headquarters
office, were terminated on September 30, 1998.

Operation and Maintenance, Southeastern Power Administration

For necessary expenses of operation and maintenance of power
transmission facilities and of electric power and energy, including
transmission wheeling and ancillary services pursuant to section 5 of
the Flood Control Act of 1944 (16 U.S.C. 825s), as applied to the
southeastern power area, $6,463,000, to remain available until expended:
Provided, That, notwithstanding the provisions of 31 U.S.C. 3302,
beginning in fiscal year 2008 and thereafter, such funds as are received
by the Southeastern Power Administration from any State, municipality,
corporation, association, firm, district, or individual as advance
payment for work that is associated with Southeastern's Operation and
Maintenance, consistent with that authorized in section 5 of the Flood
Control Act of 1944, shall be credited to this amount and be available
until expended: Provided further, That notwithstanding 31 U.S.C. 3302,
up to $48,413,000 collected by the Southeastern Power Administration
pursuant to the Flood Control Act of 1944 to recover purchase power and
wheeling expenses shall be credited to this account as offsetting
collections, to remain available until expended for the sole purpose of
making purchase power and wheeling expenditures.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0302-0-1-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Program direction................. 6 6 6
09.01 Purchase power and wheeling....... 33 33 48
--------- --------- ----------
10.00 Total new obligations........... 39 39 54
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 39 39 54
23.95 Total new obligations............. -39 -39 -54
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 6 6 6
58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 33 33 48
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 39 39 54
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 3 3 4
73.10 Total new obligations............. 39 39 54
73.20 Total outlays (gross)............. -39 -38 -54
--------- --------- ----------
74.40 Obligated balance, end of year.. 3 4 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 38 38 53
86.93 Outlays from discretionary
balances........................ 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 39 38 54
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -33 -33 -48
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 6 6 6
90.00 Outlays........................... 6 5 6
---------------------------------------------------------------------------

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 22 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. In
addition, the Budget provides that the interest rate for future
obligations owed to the Treasury by all of the Power Marketing
Administrations for power-related investments be set at the rate
Governmental corporations borrow in the market, similar to the interest
rates current law sets for the Bonneville Power Administration's
borrowing from the U.S. Treasury. This new policy will be applied to all
power-related investments whose interest rates are not specified in law.

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.

Purchase power and wheeling.--Provision is made for the payment of
wheeling fees and for the purchase of electricity in connection with the
disposal of power under contracts with utility companies. Customers are
encouraged to use alternative funding mechanisms, including customer
advances and net billing to finance these activities. Offsetting
collections to fund these ongoing operating services are also available
up to $48 million. Estimates for these activities reflect average water
levels over the past 20 years and prevailing electricity prices in 2006.

Object Classification (in millions of dollars)

11.1 Personnel compensation: Full-
time permanent................ 5 5 5
25.2 Other services.................. 2 2 1
--------- --------- ----------
99.0 Direct obligations............ 7 7 6
99.0 Reimbursable obligations.......... 32 32 48
--------- --------- ----------
99.9 Total new obligations........... 39 39 54
---------------------------------------------------------------------------

Employment Summary

----------------------------------------------------------------------------
Identification code 89-0302-0-1-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 41 42 44
---------------------------------------------------------------------------

Continuing Fund, Southeastern Power Administration

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5653-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Receipts:
02.20 Deposits from sale and
transmission of electric energy,
Southeastern Power
Administration.................. 10
Appropriations:
05.00 Continuing fund, Southeastern
Power Administration............ -10
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

[[Page 380]]

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5653-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program activity........... 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.. 9 9
73.10 Total new obligations............. 10
73.20 Total outlays (gross)............. -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 9 9 9
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 10
90.00 Outlays........................... 1
---------------------------------------------------------------------------

A continuing fund of $50,000, maintained from receipts from the sale
and transmission of electric power in the southeastern service area, is
available to defray expenses necessary to ensure continuity of service
(16 U.S.C. 825s-2). The fund was last activated during 2006 to finance
power purchases associated with below normal hydro power generation due
to drought. Consistent with sound business practices, the Budget
proposes that all emergency funds provided to Southeastern Power
Administration through the Continuing Fund for the purpose of purchasing
power or wheeling services must be repaid by power customers within one
year or less, from the time funds are expended.

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 section 5 of the Flood Control Act of 1944
(16 U.S.C. 825s), as applied to the southwestern power area,
$30,442,000, to remain available until expended: Provided, That,
notwithstanding 31 U.S.C. 3302, up to $35,000,000 collected by the
Southwestern Power Administration pursuant to the Flood Control Act to
recover purchase power and wheeling expenses shall be credited to this
account as offsetting collections, to remain available until expended
for the sole purpose of making purchase power and wheeling expenditures.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0303-0-1-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 System operation and maintenance.. 7 7 6
00.03 Construction...................... 3 3 3
00.04 Program direction................. 20 20 21
--------- --------- ----------
02.93 Direct program subtotal......... 30 30 30
Reimbursable program:

09.05 Purchase power and wheeling..... 3 3 35
09.10 Other reimbursable activities... 14 14 26
--------- --------- ----------
09.99 Total reimbursable program...... 17 17 61
--------- --------- ----------
10.00 Total new obligations........... 47 47 91
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 8
22.00 New budget authority (gross)...... 47 55 91
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 47 55 99
23.95 Total new obligations............. -47 -47 -91
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 8 8
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 30 30 30
58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 17 17 61
Mandatory:

62.00 Transferred from other accounts. 8
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 47 55 91
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 19 17 13
73.10 Total new obligations............. 47 47 91
73.20 Total outlays (gross)............. -49 -51 -93
--------- --------- ----------
74.40 Obligated balance, end of year.. 17 13 11
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 40 36 80
86.93 Outlays from discretionary
balances........................ 9 9 11
86.97 Outlays from new mandatory
authority....................... 6
86.98 Outlays from mandatory balances... 2
--------- --------- ----------
87.00 Total outlays (gross)........... 49 51 93
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -1 -1 -8
88.40 Non-Federal sources........... -16 -16 -53
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -17 -17 -61
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 30 38 30
90.00 Outlays........................... 32 34 32
---------------------------------------------------------------------------

The Southwestern Power Administration (Southwestern) operates in a
six-State area as a marketing agent for hydroelectric power produced at
the U.S. Army Corps of Engineers' dams. It also operates and maintains
1,380 miles of high voltage transmission lines, 24 substations/switching
stations, associated power system control, and communication sites.
Southwestern constructs additions and modifications to its existing
facilities.

Southwestern markets and delivers its power at wholesale rates
primarily to publicly and cooperatively owned electric distribution
utilities. In compliance with statutory requirements, Southwestern's
power sales contracts provide for periodic rate adjustments to ensure
that the Federal Government recovers all costs of operations, other
costs allocated to power, and the capital investments in power
facilities, with interest. In addition, the Budget provides that the
interest rate for future obligations owed to the Treasury by all of the
Power Marketing Administrations for power-related investments be set at
the rate Governmental corporations borrow in the market, similar to the
interest rates current law sets for BPA's borrowing from the U.S.
Treasury. This new policy will be applied to all power-related
investments whose interest rates are not specified in law.

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

[[Page 381]]

Program direction.--Provides compensation and all related expenses
for personnel who market, deliver, operate, and maintain Southwestern's
high-voltage interconnected power system and associated facilities.

Operations and maintenance.--Provides essential electrical and
communications equipment replacement and upgrades, capitalized moveable
equipment, technical services, and supplies and materials necessary for
the safe, reliable operation and cost effective maintenance of the power
system.

Purchase power and wheeling.--Provides for the purchase and delivery
of energy to meet limited peaking power contractual obligations and
transmission line losses resulting from the delivery of power over the
Federal system. Federal power receipts and alternative financing
methods, including net billing, bill crediting, and customer advances
are used to fund system purchased power support and other contractual
services. Customers will provide other power resources and/or purchases
for the remainder of their firm loads.

Construction.--Provides for replacement, addition, and modification
of existing infrastructure to sustain reliable delivery of power to its
customers, to contain annual maintenance costs, and to improve overall
efficiency.

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

Object Classification (in millions of dollars)

11.1 Personnel compensation: Full-
time permanent................ 14 14 16
12.1 Civilian personnel benefits..... 3 3 3
21.0 Travel and transportation of
persons....................... 1 1 1
25.2 Other services.................. 7 7 7
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 4 4 2
--------- --------- ----------
99.0 Direct obligations............ 30 30 30
99.0 Reimbursable obligations.......... 17 17 61
--------- --------- ----------
99.9 Total new obligations........... 47 47 91
---------------------------------------------------------------------------

Employment Summary

----------------------------------------------------------------------------
Identification code 89-0303-0-1-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 171 179 179
---------------------------------------------------------------------------

Continuing Fund, Southwestern Power Administration

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5649-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 1 1
--------- --------- ----------
01.99 Balance, start of year............ 1 1
Receipts:
02.20 Deposits from sale and
transmission of electric energy,
Southwestern Power
Administration.................. 63
--------- --------- ----------
04.00 Total: Balances and collections... 63 1 1
Appropriations:
05.00 Continuing fund, Southwestern
Power Administration............ -62
--------- --------- ----------
07.99 Balance, end of year.............. 1 1 1
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5649-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program activity........... 62
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 62
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 62
23.95 Total new obligations............. -62
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.20 Appropriation (special fund).... 62
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2 19 19
73.10 Total new obligations............. 62
73.20 Total outlays (gross)............. -45
--------- --------- ----------
74.40 Obligated balance, end of year.. 19 19 19
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 45
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 62
90.00 Outlays........................... 45
---------------------------------------------------------------------------

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 electric service and continuous operation of the
facilities and is available on an ongoing basis for paying for purchase
power and wheeling expenses when the Administrator determines that such
expenses are necessary to meet contractual obligations for the sale and
delivery of power during periods of below-average generation (16 U.S.C.
825s-1 as amended further by Public Law No. 101-101, Title III). The
fund was last activated during 2006 to finance power purchases
associated with below normal hydropower generation due to drought.

Consistent with sound business practices, the Budget proposes that
all emergency funds provided to Southwestern Power Administration
through the Continuing Fund for the purpose of purchasing power or
wheeling services must be repaid by power customers within one year or
less, from the time funds are expended.

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 the operation, maintenance, and
purchase through transfer, exchange, or sale of one helicopter for
replacement only, and official reception and representation expenses in
an amount not to exceed $1,500; $201,030,000, to remain available until
expended, of which $191,094,000 shall be derived from the Department of
the Interior Reclamation Fund: Provided, That of the amount herein
appropriated, $7,167,000 is for deposit into the Utah Reclamation
Mitigation and Conservation Account pursuant to title IV of the
Reclamation Projects Authorization and Adjustment Act of 1992: Provided
further, That notwithstanding the provision of 31 U.S.C. 3302, up to
$258,702,000 collected by the Western Area Power Administration pursuant
to the Flood Control Act of 1944 and the Reclamation Project Act of 1939
to recover purchase power and wheeling expenses shall be credited to
this account as offsetting collections, to remain available until
expended for the sole purpose of making purchase power and wheeling
expenditures.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5068-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Systems operation and maintenance. 46 44 40
00.04 Program direction................. 126 137 139
00.05 Utah mitigation and conservation
fund............................ 7 7 7
--------- --------- ----------

[[Page 382]]

00.91 Total operating expenses........ 179 188 186
01.01 Capital investment................ 53 31 15
09.01 Reimbursable program.............. 440 781 820
--------- --------- ----------
10.00 Total new obligations........... 672 1,000 1,021
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 94 83 4
22.00 New budget authority (gross)...... 661 921 1,021
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 755 1,004 1,025
23.95 Total new obligations............. -672 -1,000 -1,021
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 83 4 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 4 3 10
40.20 Appropriation (special fund).... 230 209 191
40.37 Appropriation temporarily
reduced....................... -2
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 232 212 201
Spending authority from
offsetting collections:
58.00 Offsetting collections (cash). 426 601 820
58.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 3
--------- --------- ----------
58.90 Spending authority from
offsetting collections
(total discretionary)....... 429 601 820
Mandatory:

62.00 Transferred from other accounts. 108
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 661 921 1,021
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 133 202 257
73.10 Total new obligations............. 672 1,000 1,021
73.20 Total outlays (gross)............. -600 -945 -1,086
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 202 257 192
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 519 696 910
86.93 Outlays from discretionary
balances........................ 81 200 117
86.97 Outlays from new mandatory
authority....................... 49
86.98 Outlays from mandatory balances... 59
--------- --------- ----------
87.00 Total outlays (gross)........... 600 945 1,086
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -62 -115 -207
88.40 Non-Federal sources........... -364 -486 -613
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -426 -601 -820
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 232 320 201
90.00 Outlays........................... 174 344 266
---------------------------------------------------------------------------

The Western Area Power Administration (Western) markets electric
power in 15 central and western States from federally-owned power plants
operated primarily by the Bureau of Reclamation, Army Corps of
Engineers, and the International Boundary and Water Commission. Western
operates and maintains about 17,000 circuit-miles of high-voltage
transmission line, more than 290 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. In
addition, the Budget provides that the interest rate for future
obligations owed to the Treasury by all of the Power Marketing
Administrations for power-related investments be set at the rate
Governmental corporations borrow in the market, similar to the interest
rates current law sets for BPA's borrowing from the U.S. Treasury. This
new policy will be applied to all power-related investments whose
interest rates are not specified in law.

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.--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.--Provision is made for the payment of
wheeling fees and for the purchase of electricity in connection with the
disposal of power under contracts with utility companies. Customers are
encouraged to contract for power and wheeling on their own, or use
alternative funding mechanisms, including customer advances, net billing
and bill crediting to finance these activities. Ongoing operating
services are also available on a reimbursable basis up to $258.7
million.

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.--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 primarily for
environmental mitigation expenditures covering fish and wildlife, and
recreation resources impacted by the Central Utah Project and the
Colorado River Storage Project (CRSP) in the State of Utah. Western
sells and transmits power from two projects in Utah. 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 out of the Colorado River Dam Fund
for operations and maintenance activities associated with the Boulder
Canyon Project via a reimbursable arrangement with the Interior
Department's Bureau of Reclamation. The Colorado River Dam Fund is a
revolving fund operated by the Bureau of Reclamation. Authority for
Western to obligate directly from the Colorado River Dam Fund comes from
section 104(a) of the Hoover Power Plant Act of 1984.

[[Page 383]]

Object Classification (in millions of dollars)

Personnel compensation:
11.1 Full-time permanent........... 60 72 72
11.3 Other than full-time permanent 1 1 1
11.5 Other personnel compensation.. 7 5 5
--------- --------- ----------
11.9 Total personnel compensation.. 68 78 78
12.1 Civilian personnel benefits..... 19 18 18
21.0 Travel and transportation of
persons....................... 4 3 5
22.0 Transportation of things........ 2 2 3
23.1 Rental payments to GSA.......... 2 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 3 4 4
25.2 Other services.................. 46 38 36
25.3 Other purchases of goods and
services from Government
accounts...................... 1 2
26.0 Supplies and materials.......... 15 15 6
31.0 Equipment....................... 23 21 18
32.0 Land and structures............. 43 30 22
41.0 Grants, subsidies, and
contributions................. 7 7 7
--------- --------- ----------
99.0 Direct obligations............ 232 219 201
99.0 Reimbursable obligations.......... 440 781 820
--------- --------- ----------
99.9 Total new obligations........... 672 1,000 1,021
---------------------------------------------------------------------------

Employment Summary

----------------------------------------------------------------------------
Identification code 89-5068-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 1,085 1,060 1,081
---------------------------------------------------------------------------

Emergency Fund, Western Area Power Administration

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5069-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1 1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1 1 1
----------------------------------------------------------------------------

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 activated in
2007 to repair a transformer damaged by lightning at the Huron
Substation in South Dakota.

Consistent with sound business practices, the Budget proposes that
all emergency funds provided to Western Area Power Administration
through the Continuing Fund for the purpose of purchasing power or
wheeling services must be repaid by power customers within one year or
less, from the time funds are expended.

Falcon and Amistad Operating and Maintenance Fund

For operation, maintenance, and emergency costs for the
hydroelectric facilities at the Falcon and Amistad Dams, $2,500,000, 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.

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5178-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 2 1 1
--------- --------- ----------
01.99 Balance, start of year............ 2 1 1
Receipts:
02.20 Falcon and Amistad operating and
maintenance fund receipts....... 2 3 3
--------- --------- ----------
04.00 Total: Balances and collections... 4 4 4
Appropriations:
05.00 Falcon and Amistad operating and
maintenance fund................ -3 -3 -3
--------- --------- ----------
07.99 Balance, end of year.............. 1 1 1
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-5178-0-2-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
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 2
73.10 Total new obligations............. 3 3 3
73.20 Total outlays (gross)............. -3 -3 -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 2 2 2
----------------------------------------------------------------------------

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

Pursuant to section 423(c) of the Foreign Relations Authorization
Act, Fiscal Years 1994 and 1995, Western Area Power Administration is
requesting funding 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 General
Fund to repay the costs of replacements and the original investment with
interest.

Bonneville Power Administration Fund

Expenditures from the Bonneville Power Administration Fund,
established pursuant to Public Law 93-454, are approved for the Lower
Granite Dam fish trap, the Kootenai River White Sturgeon Hatchery,
hatchery production facilities to supplement Chinook salmon below Chief
Joseph Dam in Washington, Hood River Production Facility, Klickitat
production expansion, Mid-Columbia Coho restoration, Yakama Coho
restoration, the Nez Perce Tribal Hatchery, Redfish Lake Sockeye Captive
Brood expansion, and, in addition, for official reception and
representation expenses in an amount not to exceed $1,500. During fiscal
year 2008, no new direct loan obligations may be made.

[[Page 384]]

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-4045-0-3-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
09.02 Power business line............... 1,248 1,296 1,095
09.03 Residential exchange.............. 156 337 337
09.05 Bureau of Reclamation............. 63 72 75
09.06 Corps of Engineers................ 147 162 166
09.07 Colville settlement............... 17 17 17
09.10 U.S. Fish & Wildlife.............. 20 19 20
09.20 Planning council.................. 9 9 9
09.21 Fish and wildlife................. 138 143 143
09.23 Transmission business line........ 287 291 298
09.24 Conservation and energy efficiency 63 66 65
09.25 Interest.......................... 354 347 365
09.26 Pension and health benefits....... 23 21 18
--------- --------- ----------
09.29 Total operating expenses........ 874 877 898
09.41 Power business line............... 122 133 145
09.42 Transmission services............. 138 227 278
09.43 Fish and wildlife................. 35 36 36
09.44 Capital equipment................. 16 33 47
09.46 Conservation & energy efficiency.. 20 32 32
09.51 Projects funded in advance........ 48 139 77
--------- --------- ----------
10.00 Total new obligations........... 2,904 3,380 3,223
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 49
22.00 New budget authority (gross)...... 2,904 3,429 3,243
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,904 3,429 3,292
23.95 Total new obligations............. -2,904 -3,380 -3,223
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 49 69
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

61.00 Transferred to other accounts... -69
62.00 Transferred from other accounts. 49
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. -69 49
66.10 Contract authority.............. 871
67.10 Authority to borrow............. 270 305 601
Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 3,327 3,389 3,344
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 88
69.47 Portion applied to repay debt. -565 -314 -702
69.49 Portion applied to liquidate
contract authority.......... -1,018
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 1,832 3,075 2,642
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,904 3,429 3,243
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,580 1,986 1,986
73.10 Total new obligations............. 2,904 3,380 3,223
73.20 Total outlays (gross)............. -2,410 -3,380 -3,251
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -88
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,986 1,986 1,958
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 2,410 3,380 3,243
86.98 Outlays from mandatory balances... 8
--------- --------- ----------
87.00 Total outlays (gross)........... 2,410 3,380 3,251
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -59 -90 -90
88.40 Non-Federal sources........... -3,268 -3,299 -3,254
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -3,327 -3,389 -3,344
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -88
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -511 40 -101
90.00 Outlays........................... -917 -9 -93
----------------------------------------------------------------------------

Memorandum (non-add) entries:
93.03 Obligated balance, start of year:
Contract authority.............. 1,018 871
93.04 Obligated balance, end of year:
Contract authority.............. 871
---------------------------------------------------------------------------

Bonneville Power Administration (BPA) is a 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, consisting of
15,000 circuit miles of high-voltage transmission lines and 238
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 provides about forty percent of the
region's electric energy supply and more than 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 from the U.S. Treasury is available to
the BPA on a permanent, indefinite basis. The amount of borrowing
outstanding at any time cannot exceed $4.45 billion.

BPA finances its over $3.0 billion annual cost of operations and
investments primarily using power revenues and loans from the U.S.
Treasury. BPA has also started seeking non-federal participation and
joint financing and ownership of its transmission system upgrades and
other investments. BPA will coordinate with the Secretary of Energy or
his designee on such alternative financing opportunities. BPA currently
estimates joint financing and ownership (lease-purchase excluding
financing for Columbia Generating Station new investments) at $100
million in 2007, $49 million in 2008, $50 million in 2009, $50 million
in 2010, $53 million in 2011, and $60 million in 2012 for an estimated
total of $362 million during the period 2007 through 2012.

U.S. Treasury Borrowing Authority.--BPA markets its secondary
electricity production to some customers both inside and outside of the
Pacific Northwest, such as California. In recent years, BPA has produced
substantial net secondary revenue sales--in 2006, BPA's net secondary
market revenues were in excess of $700 million, the highest amount ever.
Due to the volatility of energy prices, these secondary revenues could
be higher or lower, depending on a number of factors including hydro
variability.

It is the Administration's position that it is sound business
practice to use a portion of these higher-than-historical net secondary
revenues to invest back into energy infrastructure and to pay down debt.
Infrastructure investments for critical transmission pathways in the
Pacific Northwest transmission grid, for example, would alleviate
congestion. Infrastructure investments are needed now and will continue
to be needed in the future.

[[Page 385]]

Beginning in the year 2008 and consistent with sound business
practices required by the Transmission System Act of 1974, the budget
provides that BPA will use any net secondary market revenues, in excess
of $500 million per year, to make advance amortization payments to the
United States Treasury on BPA's bond obligations. These payments will be
made consistent with statutory priority of payment requirements. This
administrative action will help to provide BPA with needed financial
flexibility to meet its future energy investment needs, including
investments in critical transmission facilities. Long-term power and
transmission service customers of BPA should benefit from these advance
amortization payments both through lower long-term rates than would
otherwise be the case, and through improved and upgraded capital
facilities. The budget reflects an estimate of $646 million from 2008 to
2012 from these higher-than-historical net secondary revenues. The
Administration encourages a continued ongoing dialogue in the Pacific
Northwest to address the manner in which this proposal will improve
BPA's ability to meet its long-term capital investment needs with
minimal rate impact.

BPA currently has $6.5 billion in private, third-party liabilities
(including liabilities related to Energy Northwest) payable in future
years. BPA continues to pursue future debt optimization efforts
(refinancing) subject to Energy Northwest approval and municipal bond
market conditions. Estimates of new BPA debt optimization applied to
Treasury bond prepayment are $147 million in 2008 and $260 million over
the 2008-2012 period. The combined total of BPA's debt optimization
efforts and Treasury prepayments from net secondary revenues is
estimated to reduce $906 million of treasury borrowing by 2012, which
are counted towards BPA's $4.45 billion borrowing authority limit.

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 about 15,000 miles of
line and 238 substations, and for maintaining the facilities and
equipment of the Bonneville transmission system in 2008.

Power Services.--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. This activity 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. This activity 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. This activity also provides for the planning, contractual
acquisition and oversight of reliable, cost effective conservation. It
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 $4.45 billion of borrowing authority provided by the
Transmission Act as amended by the Pacific Northwest Power Act and
replenished by Public Law 98-50 and Public Law 108-7. In implementing
its 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.--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.

Capital investments: Power Services.--Provides for direct funding of
additions, improvements, and replacements at existing Federal
hydroelectric projects in the Northwest. It 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. This activity provides for the
planning, contractual acquisition and oversight of reliable, cost
effective conservation.

Capital equipment/capitalized bond premium.--Provides for capital
information technologies, and office furniture and equipment, and
software capital development in support of all BPA programs. It 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
transmission 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 and Public Law
108-7, it allows for $4.45 billion of borrowing to be outstanding at any
time. The 2008 capital obligations are estimated to be $542 million. To
the extent BPA capital borrowing authority is insufficient in 2008, BPA
would use cash reserves generated by revenues from customers, if
available, to finance some of these investments.

In 2006, BPA made payments to the Treasury of $1.1 billion and also
expects to make payments of $773 million in 2007 and $1,090 million in
2008. The 2008 payment will be distributed as follows: interest on bonds
and appropriations ($384 million), amortization ($685 million), and
other ($21 million). BPA also received credits totaling $71 million
applied against its Treasury payments in 2006 to reflect amounts
diverted to fish mitigation efforts in the Columbia and Snake River
systems.

Direct loans.--During 2008, no new direct loan obligations may be
made.

[[Page 386]]

Operating results.--Total revenues are forecast at approximately
$3.3 billion in 2008.

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 its 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 Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-4045-0-3-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 2 2 2
--------- --------- ----------
1290 Outstanding, end of year........ 2 2 2
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 89-4045-0-
3-271

2005 actual

2006 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

548

1,104

Investments in US securities:
1106

Receivables, net

1206

Non-Federal assets: Receivables, net

292

371

Other Federal assets:

1802

Inventories and related properties

1803

Property, plant and equipment, net

3,993

3,892

1901

Other assets

12,991

14,047

1999

Total assets

17,901

19,497

LIABILITIES:
2102

Federal liabilities: Interest payable

Non-Federal liabilities:

2201

Accounts payable

2203

Debt

13,523

14,144

2207

Other

4,294

5,252

2999

Total liabilities

17,901

19,497

NET POSITION:
3999

Total net position

4999

Total liabilities and net position

17,901

19,497

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

Object Classification (in millions of dollars)

11.1 Full-time permanent............. 217 253 251
11.5 Other personnel compensation.... 36 42 42
--------- --------- ----------
11.9 Total personnel compensation.. 253 295 293
12.1 Civilian personnel benefits....... 3 3 3
12.1 Civilian personnel benefits....... 53 62 62
21.0 Travel and transportation of
persons......................... 13 15 15
22.0 Transportation of things.......... 3 3 3
23.2 Rental payments to others......... 53 62 61
23.3 Communications, utilities, and
miscellaneous charges........... 6 7 7
25.2 Other services.................... 1,737 2,023 1,877
25.5 Research and development contracts 11 11 9
26.0 Supplies and materials............ 77 90 89
32.0 Land and structures............... 38 44 44
41.0 Grants, subsidies, and
contributions................... 58 68 67
43.0 Interest and dividends............ 599 697 693
--------- --------- ----------
99.0 Reimbursable obligations........ 2,904 3,380 3,223
--------- --------- ----------
99.9 Total new obligations........... 2,904 3,380 3,223
---------------------------------------------------------------------------

Employment Summary

Colorado River Basins Power Marketing Fund, Western Area Power
Administration

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-4452-0-3-271 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
09.01 Program direction................. 39 41 42
09.02 Colorado River storage project.... 125 156 166
09.03 Fort Peck project................. 10 24 24
--------- --------- ----------
10.00 Total new obligations........... 174 221 232
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 69 87 87
22.00 New budget authority (gross)...... 192 221 232
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 261 308 319
23.95 Total new obligations............. -174 -221 -232
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 87 87 87
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

Spending authority from
offsetting collections:
58.00 Offsetting collections (cash). 191 244 255
58.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 1
58.27 Capital transfer to general
fund........................ -23 -23
--------- --------- ----------
58.90 Spending authority from
offsetting collections
(total discretionary)....... 192 221 232
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 27 27 27
73.10 Total new obligations............. 174 221 232
73.20 Total outlays (gross)............. -173 -221 -232
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 27 27 27
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 173 221 232
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -1 -1 -1
88.40 Non-Federal sources........... -190 -243 -254
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -191 -244 -255
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.................. -23 -23
90.00 Outlays........................... -18 -23 -23
---------------------------------------------------------------------------

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

[[Page 387]]

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 consisting of four major storage units: Glen Canyon on
the Colorado River, Flaming Gorge on the Green River in Utah, Navajo on
the San Juan River in New Mexico, and the Wayne N. Aspinall unit on the
Gunnison River in Colorado.

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.

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

2005 actual

2006 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

114

Investments in US securities:
1106

Receivables, net

1206

Non-Federal assets: Receivables, net

Other Federal assets:

1802

Inventories and related properties

1803

Property, plant and equipment, net

108

115

1901

Other assets

1999

Total assets

281

301

LIABILITIES:
2105

Federal liabilities: Other

215

350

Non-Federal liabilities:

2201

Accounts payable

2203

Debt

2207

Other

2999

Total liabilities

281

409

NET POSITION:
3300

Cumulative results of operations

-108

4999

Total liabilities and net position

281

301

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

Object Classification (in millions of dollars)

11.1 Full-time permanent............. 20 22 21
11.5 Other personnel compensation.... 2 2 2
--------- --------- ----------
11.9 Total personnel compensation.. 22 24 23
12.1 Civilian personnel benefits....... 6 6 7
21.0 Travel and transportation of
persons......................... 1 2 1
22.0 Transportation of things.......... 1 1 1
23.1 Rental payments to GSA............ 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.2 Other services.................... 126 163 173
25.3 Other purchases of goods and
services from Government
accounts........................ 3 5 5
26.0 Supplies and materials............ 3 2 2
31.0 Equipment......................... 2 4 2
32.0 Land and structures............... 8 4 5
43.0 Interest and dividends............ 8 11
--------- --------- ----------
99.9 Total new obligations........... 174 221 232
---------------------------------------------------------------------------

Employment Summary

The Administration supports reclassification of receipts from
mandatory to discretionary (net zero appropriations) for the annual
operating expenses of Southeastern, Southwestern, and Western Area Power
Marketing Administrations. However, the Budget does not propose
reclassification because there was no agreement between the
Administration and Congress to reclassify such receipts without
legislative action. The Administration will continue to pursue
reclassfication of receipts either through provisions in the
congressional budget resolution or through changes to the existing
authorizing statute.

DEPARTMENTAL ADMINISTRATION

Federal 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, $310,366,000, 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 $161,818,000 in
fiscal year 2008 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 2008,
and any related appropriated receipt account balances remaining from
prior years' miscellaneous revenues, so as to result in a final fiscal
year 2008 appropriation from the general fund estimated at not more than
$148,548,000.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0228-0-1-276 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Office of Policy and International
Affairs......................... 16 20 19
00.03 Chief Information Officer......... 12
00.04 Office of Congressional and
Intergovernmental Affairs....... 4 5 5
00.05 Office of Public Affairs.......... 3 4 4
00.07 General Counsel................... 22 25 30
00.08 Office of the Secretary........... 5 5 6
00.09 Board of Contract Appeals......... 1
00.10 Economic impact and diversity..... 6 6 6
00.11 Competitive sourcing initiative... 3 3 2
00.12 Chief Financial Officer........... 35 37 40
00.13 Management........................ 52 54 64
00.15 Human capital management.......... 17 22 28
--------- --------- ----------
01.00 Total, direct program........... 164 181 216
09.01 Reimbursable program.............. 77 80 92
--------- --------- ----------

[[Page 388]]

10.00 Total new obligations........... 241 261 308
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 23 35
22.00 New budget authority (gross)...... 252 227 311
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.21 Unobligated balance transferred to
other accounts.................. -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 276 261 311
23.95 Total new obligations............. -241 -261 -308
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 35 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 122 103 149
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 121 103 149
58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 131 123 162
Mandatory:

62.00 Transferred from other accounts. 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 252 227 311
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 61 60 95
73.10 Total new obligations............. 241 261 308
73.20 Total outlays (gross)............. -241 -226 -297
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 60 95 106
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 192 186 257
86.93 Outlays from discretionary
balances........................ 49 40 40
--------- --------- ----------
87.00 Total outlays (gross)........... 241 226 297
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -88 -82 -108
88.40 Non-Federal sources........... -43 -41 -54
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -131 -123 -162
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 121 104 149
90.00 Outlays........................... 110 103 135
---------------------------------------------------------------------------

Departmental Administration.--This account funds eleven Department-
wide management organizations under Administrative Operations. These
organizations support headquarters in human resources, administration,
accounting, budgeting, project management, information management, legal
services, life-cycle asset management, workforce diversity, minority
economic impact, policy and international affairs, Congressional and
intergovernmental liaison, competitive sourcing and public affairs.
Funding for the Office of the Secretary is provided separately from
other administrative functions within the Departmental Administration
account.

Policy and International Affairs.--The Office of Policy and
International Affairs (PI) is the primary advisor to Departmental
leadership on existing and prospective energy-related policies. PI
provides the Department and the U.S. Government with cross-cutting
analysis of critical energy issues. PI oversees the efforts of diverse
elements in the Department to ensure a unified voice on policy and
international affairs. PI also works closely with other Federal
agencies, national and international organizations and institutions, and
the private sector to coordinate short- and long-term energy policy,
rapidly respond to breaking energy events, oversee priority budget
allocations and maintain public outreach. The Office represents the
Department in interagency discussions on energy and related policy,
addresses all aspects of U.S. energy security, and has primary
responsibility for the Department's international energy affairs,
including energy policy, energy emergency and national security,
environmental issues, investment/trade activities, and technology
cooperation. This includes negotiating and managing a variety of
bilateral and multilateral agreements with other countries and
international agencies for cooperation in the research and development
of energy and energy-related environmental technologies. PI leads the
Department's implementation of the President's National Energy Policy
and coordinates efforts to implement the NEP by Federal agencies. PI
also coordinates DOE initiatives on climate change technology,
greenhouse gas reduction reporting, and clean energy technology exports.

Chief Financial Officer.--The Office of the Chief Financial Officer
(CFO) provides the Department with centralized oversight for a full
range of financial management and program evaluation services. The CFO
leads implementation for the President's Management Agenda initiatives
on Improved Financial Performance and Budget and Performance
Integration. CFO financial activities include: budget formulation,
presentation and execution; oversight of DOE-wide internal control; and
development, maintenance and operation of DOE financial management
systems. Management activities include strategic planning and program
evaluation.

Management (MA).--The Office of Management provides DOE with
centralized direction and oversight for the full range of management,
procurement and administrative services. MA coordinates the Department's
efforts to achieve the goals of the President's Management Agenda (PMA)
and leads implementation of the PMA initiatives on Competitive Sourcing
and Federal Real Property Asset Management. Activities in the
organization include project and contract management policy development
and oversight, corporate oversight of the Department's portfolio of
facilities and infrastructure and the capital assets projects,
procurement services to DOE headquarters organizations, and management
of headquarters facilities and the delivery of other services critical
to the proper functioning of the Department of Energy.

Human Capital Management (HCM).--This office provides DOE with
direction and oversight for the full range of human capital management
and administrative services. The Chief Human Capital Officer (CHCO) and
the Director of Human Capital Management, who also serves as the Deputy
Chief Human Capital Officer (DCHCO), represent the Department on inter-
agency councils on a broad range of workforce and human capital
management issues. The Office of Human Capital Management performs
functions which directly support the mission of the Department,
including; providing leadership and advice to the Department regarding
the impact and use of human resource management policies, proposals,
programs, and partnership agreements; coordinating programs and
developing standards necessary to ensure that Departmental employees
maintain the technical qualifications necessary to safely operate DOE
facilities; and providing leadership and direction in dealings with
Federal and non-Federal organizations regarding the Department's human
resources programs and policies.

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 in

[[Page 389]]

cludes public interest groups representing state, local and tribal
governments.

Public Affairs.--This office is responsible for directing and
managing the Department'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, and review of proposed
publications and audiovisuals.

General Counsel.--The Office of the General Counsel (GC) is
responsible for providing legal services to all Department of Energy
offices, and for determining the Department's authoritative position on
any question of law with respect to all Department offices and programs,
except for those belonging exclusively to the Federal Energy Regulatory
Commission. GC's responsibilities include the provision of legal
opinions, advice and services to administrative and program offices, and
participation in or management of both administrative and judicial
litigation. The office is responsible for the coordination and clearance
of proposed legislation affecting energy policy and Department
activities. The General Counsel serves as the Department's Regulatory
Policy Officer under Executive Order 12866, and is responsible for
ensuring consistency and legal sufficiency of the Department's
regulations. GC administers and monitors standards of conduct
requirements, conducts patent program and intellectual property
activities, manages the Department's Alternative Dispute Resolution
Program, and coordinates rulemaking actions of the Department with other
federal agencies. As a part of a recent Departmental reorganization, GC
now also includes the Office of National Environmental Policy Act (NEPA)
and Compliance, which provides independent technical and policy reviews
to ensure that proposed Department actions comply with the NEPA and
related environmental requirements. This office also serves as the focal
point of the Department's NEPA expertise, develops NEPA compliance
strategies, coordinates with other agencies on key policy matters, and
prepares guidance and provides technical assistance to improve the
efficiency and effectiveness of DOE'S implementation of the NEPA
process.

Office of the Secretary.--Directs and leads the management of the
Department and provides policy guidance to line and staff organizations
in the accomplishment of DOE's mission.

Board of Contract Appeals.--DOE is not requesting 2008 funding for
Board of Contract Appeals (BCA) as this office transferred to the
General Service Administration on January 6, 2007, pursuant to Section
847 of the 2006 National Defense Authorization Act.

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, small and
minority business enterprises, and minority educational institutions.
Additionally, the office is responsible for implementing the
Department's Civil Rights and Equal Employment Opportunity (EEO)
processes and policies, including the Department's whistleblower
initiative. The office develops and executes Department-wide policies to
implement applicable legislation and Executive Orders that strengthen
diversity within the Department and its contractors in all areas of
hiring and contracting.

Competitive sourcing initiative.--This initiative funds complex-wide
competitive sourcing costs including contractor support for feasibility
and functional area studies, and implementation costs.

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)

Personnel compensation:
11.1 Full-time permanent........... 80 89 105
11.3 Other than full-time permanent 6 7 8
11.5 Other personnel compensation.. 4 4 5
--------- --------- ----------
11.9 Total personnel compensation.. 90 100 118
12.1 Civilian personnel benefits..... 20 22 26
21.0 Travel and transportation of
persons....................... 3 3 5
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
24.0 Printing and reproduction....... 1 1 1
25.1 Advisory and assistance services 13 14 16
25.2 Other services.................. 8 9 11
25.3 Other purchases of goods and
services from Government
accounts...................... 4 5 6
25.4 Operation and maintenance of
facilities.................... 22 23 28
25.6 Medical care.................... 1 1 1
26.0 Supplies and materials.......... 1 1 2
31.0 Equipment....................... 1 1
--------- --------- ----------
99.0 Direct obligations............ 164 181 216
99.0 Reimbursable obligations.......... 77 80 92
--------- --------- ----------
99.9 Total new obligations........... 241 261 308
---------------------------------------------------------------------------

Employment Summary

----------------------------------------------------------------------------
Identification code 89-0228-0-1-276 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 879 1,211 1,215
---------------------------------------------------------------------------

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, $47,732,000, to remain available until expended.

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 42 42 48
23.95 Total new obligations............. -42 -42 -48
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 42 42 48
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 8 7 7
73.10 Total new obligations............. 42 42 48
73.20 Total outlays (gross)............. -43 -42 -47
--------- --------- ----------
74.40 Obligated balance, end of year.. 7 7 8
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 38 36 41
86.93 Outlays from discretionary
balances........................ 5 6 6
--------- --------- ----------
87.00 Total outlays (gross)........... 43 42 47
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 42 42 48

[[Page 390]]

90.00 Outlays........................... 43 42 47
---------------------------------------------------------------------------

This appropriation provides Department-wide, 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, abuse and violations of law. The audit function
provides financial and performance audits of programs and operations.
The inspection function provides independent inspections and analyses of
the performance, on a system basis, of programs and operations. The
investigative function provides for the detection and investigation of
improper and illegal activities involving programs, personnel, and
operations. Through these efforts the OIG identifies opportunities for
cost savings and operational efficiencies; identifies programs that are
not meeting performance expectations; recovers monies to the Department
and the Treasury as a result of civil and criminal prosecutions; and,
identifies ways to make Departmental programs safer and more secure.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 89-0236-0-1-276 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
11.1 Personnel compensation: Full-time
permanent....................... 29 29 33
21.0 Travel and transportation of
persons......................... 2 2 2
25.2 Other services.................... 8 8 10
25.3 Other purchases of goods and
services from Government
accounts........................ 3 3 3
--------- --------- ----------
99.9 Total new obligations........... 42 42 48
---------------------------------------------------------------------------

Employment Summary

Working Capital Fund

Program and Financing (in millions of dollars)

09.10 Supplies........................ 3 3 3
09.11 Postage......................... 2 2 2
09.12 Photocopying.................... 2 2 3
09.13 Printing and graphics........... 3 3 3
09.14 Building rental, operations &
maintenance................... 68 68 71
09.15 STARS........................... 3 3 3
09.16 External independent reviews.... 11 7
09.17 Internal control................ 5 5
--------- --------- ----------
09.19 Total, Administrative services 81 97 97
Information management systems & operations:

09.20 Telecommunication............... 9 9 9
09.21 Office automation equipment and
support....................... 1 1
09.22 Networking...................... 6 6 7
--------- --------- ----------
09.29 Total, Information management
systems and operations...... 16 16 16
Procurement services:

09.30 Contract closeout............... 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 104 120 120
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 24 23 23
22.00 New budget authority (gross)...... 103 120 120
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 127 143 143
23.95 Total new obligations............. -104 -120 -120
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 23 23 23
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 103 120 120
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 41 42 43
73.10 Total new obligations............. 104 120 120
73.20 Total outlays (gross)............. -103 -119 -120
--------- --------- ----------
74.40 Obligated balance, end of year.. 42 43 43
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 98 115 115
86.93 Outlays from discretionary
balances........................ 5 4 5
--------- --------- ----------
87.00 Total outlays (gross)........... 103 119 120
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -103 -120 -120
----------------------------------------------------------------------------

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

The Department's Working Capital Fund (WCF) provides the following
common administrative services: rent and building operations,
telecommunications, network connectivity, automated office systems
including the Standard Accounting and Reporting System, payroll and
personnel processing, supplies, printing, copying, mail, training
services, project management career development program, procurement
management, External Independent Reviews and controls for financial
reporting. 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)

----------------------------------------------------------------------------
Identification code 89-4563-0-4-276 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Reimbursable obligations:
23.1 Rental payments to GSA............ 44 68 71
23.3 Communications, utilities, and
miscellaneous charges........... 14 9 9
24.0 Printing and reproduction......... 3 6 6
25.2 Other services.................... 42 34 31
26.0 Supplies and materials............ 1 3 3
--------- --------- ----------
99.9 Total new obligations........... 104 120 120
---------------------------------------------------------------------------

GENERAL FUND RECEIPT ACCOUNTS

(in millions of dollars)

----------------------------------------------------------------------------
2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
89-089400 Fees and recoveries,
Federal Energy Regulatory Commission 50 19 17
89-223000 Oil and gas sale proceeds
at NPRs............................. 9 7 9
89-223100 Privatization of Elk Hills.
89-223400 Sale of strategic petroleum
reserve oil......................... 620
89-224500 Sale and transmission of
electric energy, Falcon Dam......... 3 2 2
89-224700 Sale and transmission of
electric energy, Southwestern Power
Administration...................... 12 109 84
89-224800 Sale and transmission of
electric energy, Southeastern Power
Administration...................... 127 162 167
89-224900 Sale of power and other
utilities, not otherwise classified. -13 30 30

[[Page 391]]

89-288900 Repayments on miscellaneous
recoverable costs, not otherwise
classified.......................... 25 21 18
89-322000 All other general fund
proprietary receipts including
budget clearing accounts............ 35 65 65
General Fund Offsetting receipts from
the public............................. 868 415 392
----------------------------------------------------------------------------

Intragovernmental payments:.............
89-388500 Undistributed
intragovernmental payments and
receivables from cancelled accounts. 11 10 10
--------- --------- ----------
General Fund Intragovernmental payments. 11 10 10
---------------------------------------------------------------------------

GENERAL PROVISIONS

Sec. 301. (a)(1) None of the funds in this or any other
appropriations Act for fiscal year 2008 or any previous fiscal year may
be used to make payments for a noncompetitive management and operating
contract unless the Secretary of Energy has published in the Federal
Register and submitted to the Committees on Appropriations of the House
of Representatives and the Senate a written notification, with respect
to each such contract, of the Secretary's decision to use competitive
procedures for the award of the contract, or to not renew the contract,
when the term of the contract expires.
(2) Paragraph (1) does not apply to an extension for up to 2 years
of a noncompetitive management and operating contract, if the extension
is for cpurposes of allowing time to award competitively a new contract,
to provide continuity of service between contracts, or to complete a
contract that will not be renewed.
(b) In this section:
(1) The term ``noncompetitive management and operating
contract'' means a contract that was awarded more than 50 years ago
without competition for the management and operation of Ames
Laboratory, Argonne National Laboratory, Lawrence Berkeley National
Laboratory, Lawrence Livermore National Laboratory, and Los Alamos
National Laboratory.
(2) The term ``competitive procedures'' has the meaning provided
in section 4 of the Office of Federal Procurement Policy Act (41
U.S.C. 403) and includes procedures described in section 303 of the
Federal Property and Administrative Services Act of 1949 (41 U.S.C.
253) other than a procedure that solicits a proposal from only one
source.
(c) For all management and operating contracts other than those
listed in subsection (b)(1), 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. At least 60 days before a contract
award for which the Secretary intends to grant such a waiver, the
Secretary shall submit to the Committees on Appropriations of the House
of Representatives and the Senate a report notifying the Committees 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
augment the funds made available for obligation by this Act for
severance payments and other benefits and community assistance grants
under section 3161 of the National Defense Authorization Act for Fiscal
Year 1993 (Public Law 102-484; 42 U.S.C. 7274h) unless the Department of
Energy submits notice thereof to the appropriate congressional
committees.
Sec. 304. 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.
Sec. 305. The unexpended balances of prior appropriations provided
for activities in this Act may be available to the same appropriation
accounts for such activities established pursuant to this title.
Available balances 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. 306. 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. 307. When the Department of Energy makes a user facility
available to universities or other potential users, or seeks input from
universities or 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. When the Department of Energy considers the participation of a
university or other potential user as a formal partner in the
establishment or operation of a user facility, the Department shall
employ full and open competition in selecting such a partner. 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. 308. 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 2008 until the enactment of the Intelligence
Authorization Act for fiscal year 2008.
Sec. 309. Sales of Uranium.--(a) In General.--Notwithstanding any
other provision of Federal law, including section 3112 of the USEC
Privatization Act (42 U.S.C. 2297h-2) and section 3302 of title 31,
United States Code, the Secretary of Energy is authorized to barter,
transfer or sell uranium (including natural uranium concentrates,
natural uranium hexafluoride, depleted uranium or uranium in any form or
assay) and to use any proceeds, without fiscal year limitation, to
remediate uranium inventories held by the Secretary.
(b) Additional Requirements.--Any barter, transfer or sale of
uranium under subsection (a) shall reflect fair market value and shall
not exceed 10 percent of the total annual fuel requirements of all
licensed nuclear power plants located in the United States for uranium
concentrates, uranium conversation, or uranium enrichment.
Sec. 310. Section 312 of the Energy and Water Development
Appropriations Act, 2004 (Pub. L. 108-137), is amended as follows:
(1) In the first sentence by inserting between ``the material'' and
``in the concrete silos'', the words ``formerly stored''; and by
inserting before the period: ``when such material is disposed at an
Nuclear Regulatory Commission-regulated or Agreement State-regulated
facility''; and
(2) In the second sentence, striking ``for the purpose'' and
everything that follows, and inserting: ``after the material has been
disposed at an NRC-regulated or Agreement State-regulated facility. The
provisions of this section are intended to apply only to materials being
disposed at NRC-regulated or Agreement State-regulated facilities and
shall not preclude the materials from otherwise being disposed at
facilities operated by the Department of Energy so long as the materials
meet the disposal facility's waste acceptance criteria.''