Department of Energy FY95 Budget Request: An Overview

Secretary of Energy Hazel O’Leary’s belief in Total Quality Management, shifting priorities after the end of the Cold War, and the demise of the SSC, are changing the face of DOE. In President Clinton’s fiscal year 1995 budget request for DOE, funding for defense programs would continue to fall, while environmental restoration and energy resources, particularly efficiency and renewables, would receive increased attention. Down also would be funding for science, largely due to the termination of the Superconducting Super Collider. In line with the Administration’s overall R&D objectives (see FYI #15), emphasis would be placed on the contribution DOE’s missions can make to advancing US competitiveness, productivity, and job creation. Strategically, the budget highlights a shift toward setting measurable goals, (such as increased exports and reduced emissions) so the Department’s performance can be evaluated.

The budget request for DOE totals $18.5 billion, a decrease of $501.9 million (2.7%) from FY94. While funding levels shift throughout the Department, it is of note that most of this amount can be accounted for by the reduction from $640 million in FY94 to $180 million (a difference of $460 million) for termination costs related to the SSC.

DOE’s Science and Technology Programs (S&T) would take the largest hit, decreasing $453.3 million (13.5%) to $2,902.5 million. But when the $460 million decrease for the SSC is considered, a slight increase is available for other S&T programs. High Energy Physics would grow 0.7%, to $621.9 million. Other programs to see increases would be the Advanced Neutron Source (up 135.3% to $40.0 million to begin construction) and Fusion Energy (up 8.5% to $372.6 million.) Funding for facilities upgrades at DOE’s multi-program labs would increase 8.5% to $44.8 million, and funding for Technology Transfer at the labs would increase 36.5% to $53.5 million.

S&T programs being cut would include Basic Energy Sciences (down 6.2% to $741.3 million) and Nuclear Physics (down 13.7%, to $300.8 million.) According to DOE Office of Energy Research Director Martha Krebs, part of the reduction for Nuclear Physics is due to completion of the construction of CEBAF, and preparations for the possible close-out of LAMPF.

National Security Programs would also be reduced, dropping $342.6 million (6.2%) to $5,191.4 million. Emphasis within DOE’s defense programs continues to transition from weapons production to dismantlement, stockpile maintenance, nonproliferation, and safety issues.

Environmental Management, DOE’s largest program area for the second year in a row, would receive a $104.5 million increase (1.7%) to $6,280.3 million, to continue clean-up of contaminated sites. DOE’s fourth major area, Energy Resources, would also grow, gaining $186.8 million (5.3%) to $3,691.2 million. Energy priorities would shift away from nuclear energy to programs in efficiency, renewables and natural gas.

Future FYIs will provide details on the budget request for selected DOE programs.