DOE Technical Workshop American Society for Engineering Education (ASEE) 2012 Annual Conference Bill Valdez DOE Office of Economic Impact & Diversity June 10,

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 2

FY 13 Budget Request guided by 2011 Strategic Plan and Quadrennial Technology Review Long-term, Strategic Planning 3

4 DOE Laboratories, Facilities & Universities

Budget Request of $27.2 Billion Cutting what’s not needed: President’s budget eliminates more than $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. 5 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

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 6

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, Note: Billions of dollars, in nominal dollars Source: “The Competitiveness and Innovative Capacity of the United States,” January 2012 Commerce Report; U.S. Census Bureau, Foreign Trade Division 7

Leading in Clean Energy Technologies: Invented in America, Made in America, Sold Worldwide $330 million $95 million for wind 8 Also supports geothermal, biomass and other renewables Supports cross-cutting work to advance alternative fuels, batteries and other vehicle technologies

9 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 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 for nuclear 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 10

Safely Harnessing American Energy $12 million for research to advance technology and methods to safely and responsibly harness America’s abundant natural gas resources $60 million for nuclear waste R&D that aligns with recommendations of the Blue Ribbon Commission on America’s Nuclear Future Source: EIA AEO2012 Early Release 11

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

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 13

Energy Innovation Hubs: $140 million to support 5 existing Hubs, 1 new Hub in “Electricity Systems” $120 million to continue supporting 46 EFRC projects Published more than 1,000 peer-reviewed papers and filed more than 90 patent applications or patent/invention disclosures Hubs Making Progress Fuels from Sunlight: multiple scientific publications and invention disclosures Modeling & Simulation for Nuclear Reactors: released first versions of software that will simulate virtual model of operating physical reactor when complete Energy Efficient Buildings: developing advanced building modeling tools; built one of the country’s first 3-D building design labs 14

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 15

“…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 16

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 17

18 FY 13 Budget Request: Energy

Applied Energy Budget Summary Discretionary $ (in millions) FY 2011 Current FY 2012 Enacted FY 2013 Request Applied Energy3,2893,3723,901 EERE1,7721,8102,337 OE FE NE

Integrated Technology Teams Tech Team Office of ScienceARPA-E Office of Electricity Office of Energy Efficiency and Renewable Energy Office of Fossil Energy SunShotXXXX Batteries for TransportationXXX BiofuelsXXX Grid TechnologiesXXXX Carbon Capture, Utilization and StorageXXX SunShot Initiative New DOE model of cross-office R&D coordination Harmonized efforts of EERE, ARPA-E, and Office of Science around single DOE- wide techno-economic goal Integrated Technology Teams (ITTs) Launched in 2011 and modeled after SunShot Bring together Program Managers from offices working in related technical areas Develop DOE-wide techno-economic goals, coordinate R&D portfolios Jointly brief Under Secretary of Energy, Director of Office of Science, Director of ARPA-E on regular basis Plans to form 2-3 more in CY

Example ITT: Batteries for Transportation Dave Danielson ARPA-E Dave Howell EERE/VTP Linda Horton SC/BES John Vetrano SC/BES Pat Davis EERE/VTP Dane Boysen ARPA-E Developed DOE-wide techno-economic goals Jointly wrote the FOA for the Batteries and Energy Storage Hub Coordinating R&D programs across offices $400/kWhr Initial cost goal $400/kWhr Initial cost goal Fast charging Advanced charger goal Fast charging Advanced charger goal Safe, earth-abundant, recyclable Market-acceptance goal Safe, earth-abundant, recyclable Market-acceptance goal 21

Energy Innovation Hubs Three existing Hubs (initiated in FY10) Nuclear Energy Modeling & Simulation (CASL consortium; led by ORNL) Energy-Efficient Building Systems Design (GPIC consortium; led by Penn State) Fuels from Sunlight (JCAP consortium; led by Caltech) Two new Hubs (to be awarded in FY12) Batteries and Energy Storage Critical Materials FY13 Request: Electricity Systems Hub Supports the Secretary’s goal of Transforming our Energy Systems through Modernizing the Electric Grid Addresses the basic science, technology, economic, and policy issues that affect our ability to achieve a seamless and modernized grid 22

23 FY 13 Budget Request: Science

Office of Science Science to Meet the Nation’s Challenges Today and into the 21 st Century 24 The Frontiers of Science  Supporting research that led to over 100 Nobel Prizes during the past 6 decades— more than 20 in the past 10 years  Providing 45% of Federal support of basic research in the physical and energy related sciences and key components of the Nation’s basic research in biology and computing  Supporting over 25,000 Ph.D. scientists, graduate students, undergraduates, engineers, and support staff at more than 300 institutions 21 st Century Tools of Science  Providing the world’s largest collection of scientific user facilities to over 27,000 users each year 24

25 Science, Innovation, and DOE’s Office of Science  Science is the basis of technology and underpins America’s energy future.  Science of the 20 th century brought us the high standard of living we now enjoy. Today, we are laying the foundations for the new technologies of the coming decades.  Progress in science and technology depends on continuing advances in, and replenishment from, basic research, where the federal government—and SC—plays a unique role.  A highly trained work force is required to invent the future— scientists and engineers trained in the most modern science and technologies and with access to the best tools.

26 Science for Innovation and Clean Energy Applications of 21 st century science to long-standing barriers in energy technologies: employing nanotechnology, biotechnology, and modeling and simulation:  Materials and chemical processes by design using nanoscale and mesoscale structures for scientific advances and manufacturing innovations in: solar energy conversion; clean-energy electricity generation; battery and vehicle transportation; and carbon capture, use, and sequestration.  Biosystems by design targeting the development of synthetic biology tools and technologies and integrative analysis of experimental genomic science datasets for the design and construction of improved biofuels and bioproducts.  Modeling and simulation using SC’s Leadership Computing Facilities and production computing facilities to advance materials and chemistry by design and to broadly address energy technology challenges.

27 Office of Science FY 2013 Budget Request to Congress

28 FY 13 Budget Request: Nuclear Safety and Security

NNSA Budget Summary ($ in millions) FY 2012 Enacted FY 2013 Request $ Change % Change Weapons Activities 7,2147, % Defense Nuclear Nonproliferation 2,2962, % Naval Reactors1,0801, % Office of the Administrator % Total11,00011, % 29

FY 2013 Budget Request = $11.5 Billion 30

FY 2013 Budget Overview The request for the NNSA is $11.5 billion; 4.9% more than the FY 2012 enacted level (+$536 million). Defense Programs request is $6.2 billion, an increase of $420 million or about 7.2%. –Reflects the President’s commitment to invest significant funding over the next decade to modernize the nuclear stockpile and related infrastructure including: the B61 life extension program and W88 arming, fuzing and firing activities; accelerating construction of the Uranium Processing Facility (UPF). –Increase is partially offset by the deferral of the Chemistry and Metallurgy Research Replacement Nuclear Facility (CMRR-NF) for at least five years. 31

Office of Enivronmental Management (EM) Progress to Date and Challenges Ahead  In 1989,cleanup was required at 107 sites with a total area of 3,125 square miles across 35 states.  At the end of FY 2011, the remaining cleanup covers 17 sites with a total area of 318 square miles across 11 states. 32  The program’s toughest challenges are still ahead, including processing liquid tank waste and deactivating and decommissioning a large number of facilities.  These challenges require innovative technical solutions and scientific approaches. EM cleanup sites as of the end of FY 2011

EM Program Priorities Maintain a safe, secure, and compliant posture in the EM complex  Radioactive tank waste stabilization, treatment, and disposal  Spent (used) nuclear fuel storage, receipt, and disposition  Special nuclear material consolidation, processing, and disposition  Transuranic and mixed/low-level waste disposition  Soil and groundwater remediation  Excess facilities deactivation and decommissioning (D&D) FY 2013 Budget Request - $5.65B * Includes Program Direction, Program Support, TDD, Post Closure Administration and Community and Regulatory Support ** Includes Safeguards and Security $1,958M $428M $950M $722M $177M $805M $631M 33

FY 2013 Programmatic Highlights and Planned Accomplishments The FY 2013 budget will support major cleanup accomplishments in all areas of EM’s cleanup mission: 34 At Individual EM Sites  Hanford – Richland (WA): Complete removal and/or remedial actions for thirteen high risk facilities in the site’s 300 Area  Hanford – River Protection (WA): Continue construction of Waste Treatment Plant and perform critical tank farm infrastructure upgrades  Idaho (ID): Complete treatment of all 900,000 gallons of liquid tank waste  Los Alamos (NM): Substantially complete Material Disposal Area-A exhumation and expedite the de-inventory and disposal of above-ground transuranic waste  Moab (UT): Dispose of nearly 1 million tons of radioactive mill tailings  Oak Ridge (TN): Perform facility deactivation and decommissioning in support of the planned 2015 completion of the K-25 facility  Paducah/Portsmouth (KY/OH): Continue deactivation and decommissioning of facilities and systems  Savannah River (SC): Complete disposition of the site’s contact-handled legacy transuranic waste Across the Complex  Tank Waste: Close 2 High Level Waste tanks  Nuclear Materials: Package over 10,000 metric tons of depleted and other uranium  Soil and Groundwater: Complete remediation on over 100 release sites  Solid Waste: Disposition over 9,000 cubic meters of transuranic waste from inventory  Excess Facilities: Deactivate and decommission over 75 facilities Installation of a groundwater treatment system at the Hanford site

35 Five Reasons Why Universities Should Be Involved with DOE 1. Largest supporter of energy research in the world. 2. All research is competed and peer reviewed for quality and relevance. 3. A culture of discipline and planning that is sustained over decades. 4.Strong ties between “use inspired” basic research and its eventual application. 5. A history of partnerships with industry, academia, and other Federal agencies.

36 Opportunities for Colleges & Universities Apply to a DOE Program Ex: Fossil Energy University Research Programs: Ex: Nuclear Energy University Programs: Ex: Visiting Faculty Program: Ex: Nuclear Physics: Apply to a National Laboratory Ex: Pacific Northwest National Laboratory: Apply for an Internship Ex: Minority Educational Institution Student Partnership Program: – Get involved: Join an Advisory Committee Visit a program manager Volunteer to be a peer reviewer Become an IPA Seek a joint appointment at a DOE laboratory Participate in a “Lehman Review” Participate in a program review Participate in a Committee of Visitors

37 A Technical Workforce For Our Nation’s Future The FY 2012 DOE Budget will support: 35,000 Ph.D.s, graduate students, undergraduates and technical staff at the DOE national laboratories. 27,000 individual researchers from universities, national laboratories, and industry to use DOE’s world-leading suite of scientific user facilities this year (INCREASE). 20,000 individuals at universities through grant programs. 100,000 high tech workers involved with solar farms, weatherization, advanced manufacturing, etc. DOE has played an important role in training America’s technical workforce for more than 60 years, making historic contributions to U.S. scientific preeminence: 4,000 undergraduates each year participate in DOE internships at DOE national laboratories and Federal workforce. 3,000 graduate students work at DOE national laboratories each year on cutting edge research projects. 1,600 post-docs are employed at DOE national laboratories beginning their research careers in exciting areas of national importance: energy independence, national security and environmental cleanup. Hundreds of student interns get their start each year in the Federal workforce at DOE.

38 Bill Valdez Acting Director Office of Economic Impact and Diversity Questions or Comments?