Department of EnergyFY 2013 Budget Request Overview

February 13, 2012

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Invests in clean energy and safely harnessing our energy resources

Supports science and innovation

Saves money for families and businesses by saving energy

Cuts costs for U.S. manufacturers through more efficient operations

Reduces nuclear dangers and environmental risks

“Think about the America within our reach:  A country that leads the world in educating its

people.  An America that attracts a new generation of high-tech manufacturing and high-paying jobs.  A future where we’re in

control of our own energy, and our security and prosperity aren’t so tied to unstable parts of the world.  An economy built to

last…”

-- President Obama, 2012 State of the Union

Department of Energy FY 13 Budget Request: Building an Economy to

Last & Protecting Americans

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FY 13 Budget Request guided by 2011 Strategic Plan and

Quadrennial Technology Review

Long-term, Strategic Planning

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Budget Request of $27.2 Billion

Cutting what’s not needed: President’s budget eliminates ~ $4 billion in unnecessary fossil fuel subsidies. Scales back work on sodium-ion batteries for grid-scale energy storage since Recovery Act project is on track to show commercial viability.

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Cutting what’s not working: Over the past two years, ARPA-E, FE and EERE have discontinued funding for a combined total of nearly 35 projects that did not meet research milestones nor hold promise to achieve success.

Investing where we can have the greatest impact: Given the commercial success of onshore wind energy, wind program focuses on next generation technologies and offshore wind. Levelized cost of land based wind across U.S. (unsubsidized) is estimated to be 7.2 c/kWhr.

Reflects tough choices to cut back in areas in order to invest in strategic priorities

Commitment to Fiscal Responsibility and Management Excellence

• Reduced the time to hire by more than 40% and will continue to improve.

• Saving taxpayer money through more efficient operations. Avoided $3M in costs in FY11 through reduced travel; instituted use of non-refundable airline ticket purchases when travel isn’t expected to change;Achieved roughly $330M in strategic procurement savings in FY11;Overhauled Energy.gov to consolidate websites and save $10M annually.

• Organizing along lines of business and coordinating across programs to maximize energy technology R&D in areas from solar to batteries to biofuels and more.

• Reducing our vehicle fleet by 35% in the next few years.

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• Streamlined CRADA (Cooperative Research and Development Agreement) contract and approval process.

• Reduced advanced payment requirement for industry to work with national labs.

• America’s Next Top Energy Innovator initiative: Introduced simplified, low-cost option agreement for licensing national lab patents to start-ups ($1K option fee for up to 3 patents).

• Added flexibility for licensing: Exclusive patent licensing and equity positions in lieu of upfront payments are permitted.

• Implementing ACT (the Agreement for Commercializing Technology pilot initiative). Participating labs will have the ability to negotiate with industry on more industry standard terms.

Better Leveraging our Innovation Resources to Deliver new Products to the Market

Saving Money by Saving Energy

$310 million to improve commercial and residential building efficiency

Supports the President’s Better Buildings Initiative to catalyze private

sector investment in commercial building efficiency

Promotes passage of HOME STAR to provide rebates to help families invest in

home energy upgrades

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Strengthening U.S. Manufacturing$290 million for Advanced

Manufacturing Office to support R&D on materials and

processes to help manufacturers cut costs

Manufacturing is also supported throughout DOE (ex: batteries,

solar, advanced computing, ARPA-E).

Forming a coordinated effort in manufacturing R&D across SC,

EERE and ARPA-E.

Advanced Technology Products Trade Balance, 1990-2010

Note: Billions of dollars, in nominal dollarsSource: “The Competitiveness and Innovative Capacity of the United States,” January 2012 Commerce Report; U.S. Census Bureau, Foreign Trade Division

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Leading in Clean Energy Technologies: Invented in America, Made in America, Sold Worldwide

$330 million

$95 million for wind

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Also supports geothermal, biomass and

other renewables

Supports cross-cutting work to advance alternative fuels, batteries and other vehicle

technologies

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Leading in Clean Energy Technologies: Invented in America, Made in America, Sold Worldwide

Obama Administration proposes extending 1603 program and

Production Tax Credit and $5 billion for 48C tax credit

2011 Investment in Clean Energy

(billions of dollars)

40

45

50

55

60

ChinaUnited States

47.4

For the first time since 2008, the U.S. reclaimed the title from China as leading

country in terms of total clean energy investment.

That leadership is due in large part to government programs like the 1603

program, the Production Tax Credit and others.

Source: Bloomberg New Energy Finance data

55.9

$770 million fornuclear energy: builds on progress (launch of SMR program; engaging with

industry to support certification & licensing

approval of new reactors)

Leading in Clean Energy Technologies: Invented in America, Made in America, Sold Worldwide

More than $143 million for smart grid and energy

storage technologies, grid modernization and

cybersecurity

More than $155 million for carbon capture and storage R&D to support

CCUS efforts

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Safely Harnessing American Energy

$12 million for research to advance technology and methods to safely and

responsibly harness America’s abundant natural gas resources

Source: EIA AEO 2012 Early Release

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58% of our gas in 2010 was from unconventional sources:

Shale gas, tight gas and coalbed methane

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Source: National Energy Technology Laboratory Note: EIA production and forecast for 2011 onward is from AEO2011

0

5

10

15

20

25

30

35

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Ann

ual F

undi

ng (M

illio

ns)

Nat

ural

Gas

Pro

ducti

on (B

cf/y

ear)

DOE Unconv. Gas Tight Gas Shale Coalbed Methane

Energy Dept. support helped unlock

America’s abundant natural gas resources.

Today, we have the same opportunity to

help fulfill the promise of other energy technologies.

“The Department of Energy was there with research funding when no one else was interested and today we are all reaping the benefits. Early DOE R&D in tight gas sands, gas shales, and coalbed methane helped to catalyze the development of technologies that we are applying today.”

Fred Julander, member of the National Petroleum Council

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$60 million for nuclear waste R&D that aligns with

recommendations of the Blue Ribbon Commission on

America’s Nuclear Future

Nuclear waste and the Blue Ribbon Commission recommendations

Unleashing American Innovation

“The world is shifting to an innovation economy, and nobody does innovation better than America. In today’s innovation economy, we

also need a world-class commitment to science and research.”– President Obama, December 2011, Osawatomie, Kansas

Promotes U.S. leadership in multiple fields of basic research including energy-

related science, computing, materials science and more

$5 billion for Office of Science

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Energy Innovation Hubs: $140 million to support 5 existing Hubs, 1 new Hub in “Electricity Systems”

$120 million to continue supporting 46 EFRC projectsPublished more than 1,000 peer-reviewed papers and filed more than 90

patent applications or patent/invention disclosures

Existing Hubs

• Fuels from Sunlight

• Modeling & Simulation for Nuclear Reactors

• Energy Efficient Buildings

• Batteries and Energy Storage

• Critical Materials

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Advanced Research Projects Agency – Energy: $350 million

ARPA-E’s investments have potentially large payoffs in the future

11 projects that received $40 million from ARPA-E over the last two years have attracted

more than $200 million in private capital following

successful research breakthroughs

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“…It is increasingly clear that the danger of nuclear terrorism is one of the greatest threats to global security …. And that’s why…I called for a new international effort to secure all vulnerable nuclear materials

around the world in four years.  This is one part of a broader, comprehensive agenda that the United States is pursuing -- including

reducing our nuclear arsenal and stopping the spread of nuclear weapons -- an agenda that will bring us closer to our ultimate goal of

a world without nuclear weapons.”

-- President Obama , 4/13/10, Nuclear Security Summit

$11.5 billion for NNSA to support the President’s

nuclear security objectives

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FY 13 budget request reduces nuclear dangers and environmental risks

$2.5 billion for nonproliferation work, which will help the Department to fulfill its role in meeting the President’s goal of securing all vulnerable nuclear

materials worldwide in four years

$7.6 billion to maintain a safe, secure, and effective nuclear deterrent

$5.7 billion to clean up the environmental legacy of the Cold War

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FY 2013 Budget Submission

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$ %

Energy 3,563 3,752 4,368 616 +16.4%Applied Energy 3,288 3,372 3,901 529 +15.7%Energy Efficiency & Renewable Energy 1,772 1,810 2,337 527 +29.1%Electricity Delivery & Energy Reliability 138 139 143 4 +2.8%Fossil Energy 573 564 651 86 +15.3%Nuclear Energy 806 859 770 - 88 -10.3%

Advanced Research Proj Agency-Energy 180 275 350 75 +27.3%Energy Information Administration 95 105 116 11 +10.8%

Science 4,897 4,874 4,992 118 +2.4%Nuclear Security (NNSA) 10,526 11,000 11,536 536 +4.9%Weapons Activities 6,866 7,214 7,577 363 +5.0%Nuclear Nonproliferation 2,281 2,296 2,459 163 +7.1%Naval Reactors 986 1,080 1,089 9 +0.8%Office of Administrator 393 410 411 1 +0.3%

Nuclear Cleanup 5,836 5,880 5,828 - 52 -0.9%Environmental Management 5,668 5,710 5,650 - 60 -1.1%Legacy Management 171 170 178 8 +4.9%

Provision & Regulation 63 60 59 - 0 -0.2%Mission Support 630 728 724 - 5 -0.6%Other balances - 2Loan Programs Office/CEFA 180 6 9 3 +50.0%Subtotal, NNSA 10,526 11,000 11,536 536 +4.9%Subtotal, Non-NNSA 15,167 15,300 15,980 680 +4.4%Subtotal, Department of Energy 25,693 26,300 27,516 1,216 +4.6%

Rescission of Balances ---- - 361Total, Department of Energy 25,693 26,300 27,155 855 +3.2%

FY 2013

Request

FY13 % ∆ / FY12 Enacted

(Discretionary $ in millions)

FY 2011

Current

FY 2012

Enacted

Energy Efficiency and Renewable Energy

FY 2011 FY 2012 FY 2013Current Enacted Request

$ %

Biomass and Biorefinery RD&D 180 199 270 71 +35.5%Geothermal Technology 37 38 65 27 +71.7%Hydrogen and Fuel Cell Technologies 96 104 80 -24 -22.8%Solar Energy 260 289 310 21 +7.3%Water Power 29 59 20 -39 -66.0%Wind Energy 79 93 95 2 +1.9%Advanced Manufacturing* 106 116 290 174 +150.9%Building Technologies 207 219 310 91 +41.4%Federal Energy Management Program 30 30 32 2 +7.1%Vehicle Technologies 293 329 420 91 +27.7%Weatherization and Intergovernmental Activities 231 128 195 67 +52.3%Facilities and Infrastructure 51 26 26 +0.3%Program Direction 170 165 165 -0.2%Strategic Programs** 32 25 59 34 +135.6%Subtotal, Energy Efficiency and Renewable Energy 1,801 1,820 2,337 517 +28.4%Adjustments*** -30 -10 N/A

Total, Energy Efficiency And Renewable Energy 1,772 1,810 2,337 527 +29.1%

(discretionary $ in Millions)

FY13 % ∆ / FY12 Enacted

* Industrial Technologies Program renamed as Advanced Manufacturing in FY 2013

*** The FY2013 Request does not include a General Provision w hich rescinds $70M in prior year balances** Program Support renamed as Strategic Programs in FY 2012

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Electricity Delivery & Energy Reliability

FY 2011 FY 2012 FY 2013Current Enacted Request

$ %

Research and Development 102 99 103 4 +4.3%

Permitting, Siting and Analysis 6 7 6 -1 -14.0%Infrastructure Security and Energy Restoration 6 6 6 0

Program Direction 28 27 28 1 +2.2%

Subtotal, Electricity Delivery & Energy Reliability 142 139 143 4 +2.8%

Adjustments -4 N/ATotal, Office Electricity Delivery & Energy Reliability 138 139 143 4 +2.8%

(discretionary $ in Millions)

FY13 % ∆ / FY12 Enacted

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Fossil Energy

FY 2011 FY 2012 FY 2013Current Enacted Request

$ %

Fossil Energy Research and Development 434 347 421 74 +21.3%Naval Petroleum and Oil Shale Reserves 21 15 15 0Strategic Petroleum Reserve 123 193 196 3 +1.5%Northeast Home Heating Oil 11 10 4 -6 -59.3%Elk Hills - California Teachers' Pension Fund Settlement 16 16 +100.0%Subtotal, Fossil Energy 589 564 651 86 +15.3%Adjustments -17 N/ATotal, Fossil Energy 573 564 651 86 +15.3%

FY13 % ∆ / FY12 Enacted

(discretionary $ in Millions)

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Nuclear Energy

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FY 2011 FY 2012 FY 2013Current Enacted Request

$ %

Nuclear Energy Enabling Technologies 51 75 65 -9 -12.5%

Integrated University Program 5 -5 -100.0%

Light Water Reactor Small and Modular Reactor Licensing Technical Support 67 65 -2 -3.0%

Reactor Concepts RD&D 165 115 73 -42 -36.4%

Fuel Cycle R&D 182 186 175 -5.8%

International Nuclear Energy Cooperation 3 3 3 +0.6%

Radiological Facility Management 52 70 51 -19 -26.6%Idaho Facilities Management 184 154 152 -2 -1.4%

Idaho Sitewide Safeguards and Security 95 95 +100.0%

Program Direction 86 91 90 -1 -1.1%

Subtotal, Nuclear Energy 723 765 770 5 +0.7%

Adjustments -5 N/ASubtotal, Nuclear Energy 718 765 770 5 +0.7%Other Defense ActivitiesIdaho Sitewide Safeguards and Security 89 93 -93 -100.0%Adjustments -1 N/ASubtotal, Other Defense Activities 88 93 -93 -100.0%

Total, Nuclear Energy 806 859 770 -88 -10.3%

(discretionary $ in Millions)

FY13 % ∆ / FY12 Enacted

Advanced Research Projects Agency - Energy

FY 2011 FY 2012 FY 2013

Current Enacted Request

$ %

ARPA-E Projects 166 255 325 70 +27.5%Program Direction 14 20 25 5 +25.0%

Total, Advanced Research Projects Agency - Energy (ARPA-E) 180 275 350 75 +27.3%

FY13 % ∆ / FY12 Enacted

(discretionary $ in Millions)

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Science

FY 2011 FY 2012 FY 2013

Current Enacted Request

$ %

Advanced Scientific Computing Research 410 441 456 15 +3.3%Basic Energy Sciences 1,639 1,688 1,800 111 +6.6%Biological and Environmental Research 595 610 625 16 +2.6%Fusion Energy Sciences Program 367 401 398 -3 -0.7%High Energy Physics 776 791 777 -14 -1.8%Nuclear Physics 528 547 527 -20 -3.7%Workforce Development for Teachers and Scientists 23 19 15 -4 -21.6%Science Laboratories Infrastructure 126 112 118 6 +5.4%Safeguards and Security 84 81 84 3 +4.3%Science Program Direction 203 185 203 18 +9.5%Small Business Innovation Research (SBIR) 163 N/ASubtotal, Office of Science 4,912 4,874 5,001 128 +2.6%Adjustments -15 -9 N/ATotal, Office of Science 4,897 4,874 4,992 118 +2.4%

FY13 % ∆ / FY12 Enacted

(discretionary $ in Millions)

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National Nuclear Security Administration

FY 2011 FY 2012 FY 2013Current Enacted Request

$ %

Weapons Activities 6,866 7,214 7,577 363 +5.0%

Defense Nuclear Nonproliferation 2,281 2,296 2,459 163 +7.1%

Naval Reactors 986 1,080 1,089 9 +0.8%

Office of the Administrator 393 410 411 1 +0.3%

Total, National Nuclear Security Administration 10,526 11,000 11,536 536 +4.9%

(discretionary $ in Millions)

FY13 % ∆ / FY12 Enacted

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Environmental Management

FY 2011 FY 2012 FY 2013Current Enacted Request

$ %

Defense Environmental Cleanup 4,991 5,006 5,494 488 +9.7%

Non-Defense Environmental Cleanup 226 235 199 -37 -15.6%

Uranium Enrichment D&D Fund 507 472 442 -30 -6.3%

UED&D Transfer Payment -34 -463 -463 +100.0%

Subtotal, Environmental Management 5,690 5,714 5,672 -42 -0.7%

Adjustments -23 -3 -22 N/ATotal, Environmental Management 5,668 5,710 5,650 -60 -1.1%

(discretionary $ in Millions)

FY13 % ∆ / FY12 Enacted

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Legacy Management

FY 2011 FY 2012 FY 2013Current Enacted Request

$ %

Legacy Management 159 158 164 7 +4.4%

Program Direction 13 12 13 1 +11.4%

Subtotal, Office Of Legacy Management 172 170 178 8 +4.9%

Adjustments -1 N/ATotal, Office Of Legacy Management 171 *170 178 8 +4.9%

(discretionary $ in Millions)

FY13 % ∆ / FY12 Enacted

* This amount does not include use of $12M in off ice of Environmental Management (EM) unobligated prior year funding.

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Loan ProgramsFY 2011 FY 2012 FY 2013Current Enacted Request

Title 17 - Innovative Technology Loan Guarantee Program

Administrative operations 38 38 38Loan guarantee, offsetting collections -38 -38 -38S.1703 Appropriated Credit Subsidy Renewable or Efficient End-Use Tech 170

Total, Innovative Technology Loan Guarantee 170

(discretionary $ in Millions)

FY 2011 FY 2012 FY 2013Current Enacted Request

$ %

Advanced Technology Vehicles Manufacturing Loan Program 10 6 9 3 +50.0%

Total, Advanced Technology Vehicles Manufacturing Loan Program 10 6 9 3 +50.0%

(discretionary $ in Millions)

FY13 % ∆ / FY12 Enacted

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Corporate Management and Other Activities

FY 2011 FY 2012 FY 2013Current Enacted Request

$ %

Energy Information Administration 95 105 116 11 +10.8%

Health, Safety and Security 262 251 246 -5 -2.1%

Specialized Security Activities 163 187 189 2 +1.0%

Corporate Management 162 249 246 -3 -1.1%

Power Marketing Administrations 99 85 85 0

Federal Energy Regulatory Commission -36 -26 -26 0Inspector General 43 42 43 1 +3.5%Total, Other 788 893 900 7 +0.7%

(discretionary $ in Millions)

FY13 % ∆ / FY12 Enacted

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Additional budget information can be found at:

www.energy.gov

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