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AWG E-MAIL NEWS 2004-6

AGI Government Affairs Special Updates

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CONTENTS

1) THE PRESIDENT'S FY05 BUDGET REQUEST: NOAA, NASA, EPA

2) THE PRESIDENT'S FY05 BUDGET REQUEST: DOI AND USGS

3) THE PRESIDENT'S FY05 BUDGET REQUEST: NATIONAL SCIENCE

FOUNDATION

4) THE PRESIDENT'S FY05 BUDGET REQUEST: DEPARTMENT OF ENERGY

5) CONTACT INFORMATION

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Thanks to everyone who contributed to this issue of E-mail News

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1) THE PRESIDENT'S FY05 BUDGET REQUEST: NOAA, NASA, EPA

IN A NUTSHELL: Geoscience programs exist in agencies other than the U.S. Geological Survey, the National Science Foundation and the Department of Energy. Below is a roundup of how programs important to geoscientists fared within the National Oceanic and Atmospheric Administration, the Department of Education, NASA, the Environmental Protection Agency and the Smithsonian.

*** National Oceanic and Atmospheric Administration ***

The proposed funding for NOAA in FY05 is $3.3 billion, an 8.2% decrease from last year's appropriation. Within NOAA, the majority of the research is managed by the Office of Oceanic and Atmospheric Research (OAR), which is slated to receive a 12% decrease, leaving the program with a total of $350 million. Under the President's FY05 budget request, the National Ocean Service (NOS) would receive $394.3 million (down 22%). The National Weather Service is slated for a 3% increase, bringing the total to $749 million.

NOAA's budget slashes funding for the "wet side", which includes the NOS and OAR. Programs in NOS that will receive less funding than last year include: Navigation Services (down $15 million), Ocean Resources Conservation and Assessment (down $80 million) and Ocean & Coastal Management (down $31 million). In OAR, the Ocean, Coastal and Great Lakes Research program was cut by $50 million. The Weather and Air Quality Research program was cut by $20 million. However, the Climate Research Program requested $13 million more than last year.

NOAA's budget documents are available at http://www.publicaffairs.noaa.gov/budget2005/.

*** Department of Education ***

The Department of Education (ED) requested a total of $57.3.4 billion in discretionary funding, an increase of nearly 3% from last year's funding level. Similar to the last couple of years, the ED program for math and science education for elementary and secondary education is funded through the Math and Science Partnership (MSP) program -- there is an identically named program at the National Science Foundation that complements the ED program. The funding request for MSP is $269.1 million, an 80% increase over last year's allocation. However, this funding is primarily for mathematics, not science. In addition, this large increase is due to a decrease in the NSF part of the MSP program. The Administration is phasing the MSP program out of NSF and trying to move it entirely to ED.

Additional information on the ED budget is available at http://www.ed.gov/offices/OUS/Budget04/04summary/index.html.

*** National Aeronautics and Space Administration *** NASA has requested $16.2 billion for FY 2005, a slight increase (5.2%) over the agency's congressional appropriation in FY 2004. The increase is largely for reorienting the agency toward space exploration and manned missions to the Moon and Mars. In mid-January President Bush announced a new mandate for NASA; a return to the moon with robotic missions no later than 2008. To accomplish this goal, $11 billion would be reallocated from other NASA programs. The plan also calls for completing work on the International Space Station by 2010 and refocusing onboard research on the effects of space flight on astronaut health. The shift in NASA's mission would add 1% in FY 2005 to the space science budget, which would increase to $4.1 billion.

Programs that feel the effect of the reallocation are the Earth Science Enterprise (ESE) and Earth science applications. ESE would be cut by 7% to $1.41 billion and Earth science applications would decrease 15% to $76.9 million. Despite the cuts, the ESE budget includes funding to complete the current generation of satellite systems, the June 2004 launch of the Aura satellite that will look at the physics and chemistry of the Earth's atmosphere, and Cloud-Sat satellites to study climate and weather.

NASA budget documents are available at http://www.nasa.gov/about/budget/index.html.

*** Environmental Protection Agency ***

In its FY 2004 request, EPA has sought a total of $7.76 billion, down 2% from the agency's FY 2004 appropriation. Extramural research grants and graduate fellowships administered by the EPA would be severely cut under the FY 2005 budget request. The Science to Achieve Results (STAR) graduate fellowship program would be cut by 33.5 % relative to the FY 2004 enacted level. Approximately 93 fewer of the larger STAR research grants would be awarded. The cuts to the STAR program are somewhat surprising because the National Academy of Science called the program "excellent" in a recent report. Research programs that would be affected by the proposed cuts in EPA STAR funding include: ecosystems protection ($22.2 million decrease), pollution prevention ($5 million decrease), endocrine disruptors ($4.9 million decrease), mercury research ($2 million decrease) and hazardous substance research centers ($2.3 million decrease). Other research programs that would receive less funding next y

ear include an $8.3 million cut for Homeland Security Building Decontamination Research and a $1 million cut for Environmental Technology Verification. Lastly, all funding for the EPA Office of Environmental Education would be eliminated in the proposed budget. The office received approximately $10 million in FY 2004.

EPA's budget documents are available at http://www.epa.gov/ocfo/budget/budget.htm.

*** Department of Agriculture ***

The Department of Agriculture supports several programs in soil science, watershed management, and water resources. Most of these programs are funded through the Natural Resources Conservation Service (NRCS), which requested a total of $2.76 billion. Within this amount, $40 million would go towards watershed and flood prevention operations, $5 million would go towards watershed surveys and planning activities, $20 million would go towards ground and surface water conservation program, and $295 million would go towards the Wetlands Reserve Program. Of all programs mentioned, only the Wetlands Reserve Program would see an increase in funding. The Emergency Watershed Protection account would not be funded at all under the proposed FY 2005 budget.

Additional information on the Department of Agriculture's budget request is available at http://www.usda.gov/agency/obpa/Home-Page/obpa.html.

*** U.S. Forest Service ***

Total funding for the U.S. Forest Service (USFS) would decrease by 6.5% from last year's funding level, for a total of $5.2 billion. The FY 2005 budget proposes a $63.8 million increase in funds for the National Fire Plan, which includes program increases for wildfire suppression and hazardous fuel reduction. The total request for the National Fire Plan from both Forest Service and the Department of Interior is $2.5 billion.

Funding for wildland fire management would decrease by 12% from last year's allocation, to total $1.4 billion. Forest and Rangeland research requested an increase of $14.3 million for science and technology. The Minerals and Geology Management program requested $60 million, a 10% increase from last year's funding level.

Addition information on the USFS budget request is available at http://www.fs.fed.us/budget_2004/.

*** Smithsonian Institution ***

The FY 2005 request for the Smithsonian is $628 million, including a new Facilities Capital account. This funding level marks a 27% increase from the FY 2004 appropriation. Approximately $21 million of the $32 million increase would be used primarily for renovation and revitalization of facilities. The National Zoological Park would get $19.5 million and the National Museum of Natural History would get $7 million for revitalization projects.

Last year a specially appointed science commission released a report outlining the role of research within the Smithsonian. The report noted that funding erosion and poor long-term scientific leadership have placed the institution in poor financial standing. Adding to the funding complexities are congressionally mandated increases for targeted programs; the report

asserts: "The cannibalization of staff positions to fund these mandated increases must stop." Earlier, the National Research Council released a report with similar findings. The message, however, does not appear to have had a significant impact on the president's FY 2004 request. This year, however $1.5 million would go toward implementing some of the commission's recommendations such as expanding the fellowship program and providing funds for the care of the collections at the National Museum of Natural History.

Special update prepared by Emily M. Lehr, AGI Government Affairs Program and Gayle Levy, AGI/AAPG 2004 Spring Semester Intern.

Sources: Agency budget documents, Environment and Energy Daily, Greenwire, The Washington Post

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2) THE PRESIDENT'S FY05 BUDGET REQUEST: DOI AND USGS

IN A NUTSHELL: Under the FY 2005 budget request recently submitted by the Bush Administration, funding for the U.S. Geological Survey would decline 1.9% or $18.2 million. USGS currently receives $938.0 million, which would drop to $919.8 million for the 2005 fiscal year.

In a budget document USGS Director Charles Groat stated: "In FY 2005, we will put emphasis on providing science to help meet other DOI bureaus' natural resource management needs and on the President's Management Agenda. Our efforts for 2005 will focus on water availability and invasive species, as well as our response to natural hazards, all of which are issues of critical importance to land and resource managers and to all Americans. We will continue to provide timely, objective scientific information to other Federal agencies, state and local partners and stakeholders to address critical societal issues. We will also enhance activities associated with financial management and information technology security."

USGS has released an outline of its FY 2005 budget request categorized by activity/subactivity/program element that can be viewed at http://www.usgs.gov/budget/2005/fy05_pres_budget_request.html.

Below is a discussion of funding levels important to the geosciences. Note that while almost all of the accounts decline, the USGS proposes a new line item called Enterprise Information for which $45.2 million is requested.

The line item "consolidates funding of all bureau wide information functions (technology, management, and service) that were previously distributed among several USGS office and budget structure items." Since this new structure represents, to varying degrees, changes in program activity, it cannot be determined how actual funding for each program might change.

***Department of the Interior***

Total funding request for the Department of the Interior (DOI) comes to $11 billion, a 2.8% increase from the FY2004 funding level and the "largest presidential request in the Department's history". Among the agency's priorities is supporting cooperative conservation, accelerating Indian trust reform, reforming the Abandoned Mine Lands program, implementing the Healthy Forests Initiative, addressing the National Park Service's maintenance backlog and enhancing the education of American Indian children.

Funding for the Minerals Management Service (MMS) is up just about 5% for a total requested level of $179 million. The Outer Continental Shelf Resource Evaluation program is also up 5% to $146.1 million.

The Bureau of Land Management (BLM) has requested $1.7 billion, a 2% cut from last year's allocation. Funding for BLM energy and mineral programs has decreased 3% from last year's allocation, giving a total of $104 million for these activities. However, the leasing of gas fields will raise an additional $4.0 million in revenue, keeping the total budget at the 2004 enacted level.

The National Park Service (NPS) is slated for an increase of just under 5%, for a total request of $2.4 billion. Resource stewardship geologic resources funding within NPS will stay the same at $2.7 million. Within this account, NPS budget documents outline a monitoring program for water quality in the parks and an "inventory and monitoring program for park vital signs" which will increase 8% to $41 million. Also with the resource stewardship account is the water quality monitoring program that will see a 5% increase to $12.6 million.

More information on the DOI budget request is available at http://www.doi.gov/budget/toc.html.

*** U.S. Geological Survey ***

Looking at the U.S. Geological Survey (USGS) as a whole, almost every major program area has had funding decreases, and the FY 2005 budget represents a step backward from FY 2004 levels. The total request is $920 million, down 2.5% from the FY 2004 level of $944 million.

In all cases, the many increases and decreases described here do not take into account the uncontrollable costs (salaries, maintenance, etc.) that increase each year and cut into funds available for actual program activities. This year there have been reductions across many programs, and targets some specific programs such as mineral resources (down almost $7 million) and cooperative topographic mapping (down $3 million). USGS Director Charles (Chip) Groat told EOS that "We are not seeing the big program gashes that we had before." Groat attributes this change partly to better internal management and information technology improvements. The budget winners were water availability, invasive species and natural hazards. The Enterprise Information budget, a new program for FY05, would receive funding from each division of the agency to total $45 million, and will consolidate funding for technology, management and information throughout the agency.

*** Geologic Programs ***

Overall, geologic programs would receive $220.8 million, a 5% decrease from last year's enacted level. In addition to cutting funds for mineral resource assessments and seismic networks as described below, the request also calls for the survey's energy resources program to use existing funds to provide scientific information regarding methane hydrates to the Minerals Management Service.

The biggest hit in the geologic discipline goes to the Mineral Resources Program, which would receive a $7 million decrease after undergoing a $9.1 million cut in the FY04 budget. The proposed cuts transfer over $3 million to the new enterprise information budget and an $11 million reduction for earmarks.

The Advanced National Seismic System (ANSS) will be funded at a flat rate from FY04 budget; however, the program was cut by almost $2 million last year from the FY03 budget. The program has never come close to the funding levels called for in the last reauthorization of the National Earthquake Hazard Reduction Program (NEHRP). That legislation, signed into law in November 2000, authorized $170 million over five years. The flat funding after last year's cut would eliminate nearly half of the increases that previous budgets had provided toward that lofty goal.

*** Water Programs ***

Overall, water programs would receive $202.7 million, still down 6.2% from last year's allocation. The Water Resources Research Institutes, which were zeroed out in the president's FY 2003 and FY 2004 requests would be cut again by $6.4 million this year. The water resources program would also receive $1 million for research into the water quality in the Klamath basin

The National Water-Quality Assessment program requested an increase of $200,000, its first increase since FY 1999. The Ground Water Resources Program would increase by $800,000 for a water availability and use initiative. The Toxic Substances Hydrology Program would decline by $518,000 to $12.64 million, which is far less drastic than last year when cutbacks were proposed and a transfer of what remained to the National Science Foundation.

*** Mapping Programs ***

Overall, mapping programs would receive $118.9 million, down 7.8% from last year's allocation. The budget request includes an $8.6 million transfer to the Enterprise Information program and a $1.9 million decrease for the National Map a program to create a comprehensive geographic information data base which incorporates elevation data, orthophotography, hydrology and other information. According to EOS, National Map program director Barbara Ryan said "that cut arrests the development of the National Map."

*** Biological Programs ***

Biology is also marked for a small decrease from last year's allocation. Totaling $167.6 million, biology programs would receive increases for finding solutions and assisting the mitigation of biological resource problems facing Federal agencies and State, local and tribal governments.

The budget proposes transferring $2.9 million to the Enterprise Information program and a $2.8 million reduction in fire science. Some of the fire science programs will be funded by the Wildland Fire Management account.

To keep up-to-date with the latest information about how Congress plans to fund these programs within the Department of the Interior, click on http://www.agiweb.org/gap/legis108/appropsfy2005_interior.html.

Special update prepared by Emily M. Lehr, AGI Government Affairs Program and Gayle Levy, AGI/AAPG 2004 Spring Semester Intern.

Sources: American Institute of Physics, Environment and Energy Daily, Greenwire, The Washington Post, the Department of the Interior website, USGS website.

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3) THE PRESIDENT'S FY05 BUDGET REQUEST: NATIONAL SCIENCE FOUNDATION

IN A NUTSHELL: In the FY 2005 proposed budget NSF would receive only a 3% boost to $5.75 billion. Within the total request, $4.3 billion would go to the Research and Related Activities (RRA) account that funds the disciplinary directorates, an increase of just under 5% from last year's allocation. Of this total request, $778 million would go to Education and Human Resources, a cut of 17.9% from last year's funding level. The Major Research Equipment and Facilities Construction (MREFC) account, which funds capital costs associated with large-scale facilities such as telescopes or networked installations, is slated to receive $213 million, an impressive 36% increase from what this account received last year.

This funding increase is less than the amount authorized last year by legislation, signed by President Bush in December 2002, which would put the agency on a budget-doubling track similar to that achieved by the National Institutes of Health over the past five years. Senate Appropriations Subcommittee Chairman Christopher Bond (R-MO) and Ranking Minority Member Barbara Mikulski (D-MD) both support the NSF and are deeply disappointed by the 3% increase. At a hearing of the subcommittee in late February, Senator Mikulski stated: "Senator Bond and I are committed to doubling the NSF's budget. It's bipartisan and bicameral. But we cannot do it alone."

***National Science Foundation***

The Bush Administration has requested a 3.0% increase for the National Science Foundation for the fiscal year starting on October 1. This represents an increase of $167.2 million over the current year budget of

$5,577.8 million, to $5,745.0 million.

In describing the FY 2005 request, NSF Director Rita Colwell stated, "This year, we have had to make informed choices in a sea of mixed opportunity and constraint." Components of the budget request vary greatly in percentage changes over the current year. Research and Related Activities spending would increase 4.7%, while funding for Major Research Equipment and Facilities Construction would climb by 37.6%. In contrast, the Education and Human Resources budget would be cut by 17.9%.

In its budget submission to Congress, NSF identifies three priorities:

"Strengthen NSF management to maximize effectiveness and performance." The foundation is requesting $70 million to "strengthen the NSF workforce" and for the enhancement of information technology infrastructure and related activities.

"Improve the productivity of researchers and expand opportunities for students." Emphasis will be placed on increasing grant size to an annual average of $142,000, as well as efforts to increase grant duration.

"Strengthen the nation's performance with world-class instruments and facilities." The budget document explains that "investment of all types

(Tools) rises to $1.47 billion, representing 26% of the FY 2005 Budget Request."

The foundation intends to "continue to support five priority areas with promising research horizons." Only one of these areas, Nanoscale Science and Engineering, would see an increase, in this instance by 20.3% or $51.6 million. Biocomplexity in the Environment and Mathematical Sciences would each receive flat funding. Human and Social Dynamics would fall by 4.1%. A new priority, Workforce for the 21st Century, would receive $20.00 million

In describing the FY 2005 budget request, Director Colwell commented, "This year the National Science Foundation is requesting $5.745 billion dollars, an increase of $167 million, or 3 percent above the FY 2004 budget estimate.

In light of the significant challenges that face the nation-in security, defense, and the economy-this increase is a tribute to the extraordinary performance of the 200,000-plus students, teachers and researchers who are directly supported by NSF each year, and a vote of confidence for the National Science Foundation's performance. Thanks to strong support for NSF's vision and mission in the Administration and Congress, the NSF budget has grown steadily-by 62 percent between FY 1998 and FY 2004."

A different view was offered by Rep. Eddie Bernice Johnson (D-TX), a senior Democrat on the House Science Committee who stated, "Two years ago, the Congress sent the President a bill authorizing a doubling of NSF's programs over 5 years. Despite signing that bill to glowing reviews, the President has sent us two successive budgets that fall far short of reaching that goal. With this budget submission we stand $3 billion below the doubling path. This marks a fundamental breach of trust with our institutions of higher education and with our children, who depend on NSF to fund the best and brightest to pursue the most promising scientific insights. The only thing more surprising is the 18% cut to the education and human resources budget account from an Administration that has claimed education of our youth as one of its rhetorical hallmarks."

*** Geosciences Directorate ***

The request for the Geosciences Directorate, which includes Atmospheric, Oceanic and Earth Science Divisions, is complicated by the administration's attempt last year to transfer several programs from other agencies into the directorate. Congress rejected this proposed transfer. Funding for the Geoscience Directorate (GEO) would increase from the FY2004 appropriation, with a budget request of $728.5 million. Within GEO, the Earth Sciences Division (EAR) would receive $155.6 million, Atmospheric Sciences would receive $243.6 million, and Ocean Sciences would receive $329.3 million all increases from the FY 2004 budget.

In FY 2005 GEO will emphasize research on the key physical, chemical and geologic cycles with in the Earth system. Both the Earthscope and Ocean Drilling Programs operations budgets were doubled in the FY 2005 budget request. The Climate Change Research Initiative funding would stay flat with the 2004 funds.

*** Major Research Equipment & Facilities Construction Account ***

The total MREFC amount requested for 2005 is $213.3 million, up 37.6% from 2004. New starts requested in the 2005 MREFC budget include: National Ecological Observatory Network ($12 million), Scientific Ocean Drilling Vessel ($40.9 million) and Rare Symmetry Violating Processes ($30 million).

On a long-term outlook, other new starts budgeted to start in 2006 are Ocean Observatories Initiative, Alaska Region Research Vessel.

The budget documents also clearly state the priorities for MREFC funding in FY 2005. EarthScope is one of seven projects highlighted. Others include continued support of the Incorporated Research Institutions for Seismology (IRIS), the Integrated Ocean Drilling Program (IODP), and continued construction of the Advanced Modular Incoherent Scatter Radar (AMSIR). For FY 2005, the $47.4 million requested for EarthScope in the MREFC account would support three of its components: the United States Seismic Array (US Array), the San Andreas Fault Observatory at Depth (SAFOD), and the Plate Boundary Observatory (PBO).

*** Polar Programs ***

The Office of Polar Programs (OPP) funds research activities, in conjunction with other federal agencies, in the Arctic and Antarctic. OPP is requesting $349.7 million for FY 2005, an increase of 2.2% from last year's funding level. Of this amount, $281 million will be for the Polar Research Program, with the remaining amount going towards Antarctic Logistical Support Activities. Science facilities; operations at McMurdo, South Pole and Palmer stations; engineering construction and facilities maintenance; and data handling and communications all have budget request increases for 2005.

The NSF budget documents provide a wealth of information regarding the research and education funded by the foundation, including multi-year trends in funding and descriptions of successful past research that is benefiting the nation. The budget documents are available on the web at http://www.nsf.gov/home/budget/.

To keep up-to-date with the latest information about how Congress plans to fund these programs within the National Science Foundation, click on http://www.agiweb.org/gap/legis108/appropsfy2005_vahud.html.

Special update prepared by Emily M. Lehr, AGI Government Affairs Program and Gayle Levy, AGI/AAPG 2004 Spring Semester Intern.

Sources: American Institute of Physics, Environment and Energy Daily, Greenwire, The Washington Post, the Department of Energy website.

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4) THE PRESIDENT'S FY05 BUDGET REQUEST: DEPARTMENT OF ENERGY

IN A NUTSHELL: A total of $3,431.7 million was requested for the Department of Energy's Office of Science in President Bush's FY 2005 budget request. This represents a reduction of 2.0%, or $68.5 million, from FY 2004 funding of $3,500.2 million. However, according to Office of Science Director Ray Orbach, the cut reflects the elimination of $140.7 million in congressionally-directed earmarks in the FY 2004 appropriation for Biological and Environmental Research, which were not included in the FY 2005 request. Taking this into consideration, Orbach said, the request of

$3,431.7 million would represent an increase of 2.2%, or $72.3 million, over the FY 2004 appropriation of $3,359.4 million for the Office of Science core programs.

The complete DOE budget documents can be found at www.mbe.doe.gov/budget/05budget/index.htm. Highlights of the request for each of the Office of Science programs are available in the "Budget Highlights" document (in pdf format) under "Science Strategic Goal," at www.mbe.doe.gov/budget/05budget/content/highlite/highlite.pdf.

The total Department of Energy request for FY 2005 is $23.5 billion, an increase of 1.8% from last year's funding level. The department is responsible for a wide array of missions, most not related to energy. The two largest parts of the budget are the National Nuclear Security Administration ($9 billion), which oversees the development and management of the nation's nuclear weapons stockpile, and environmental cleanup of former nuclear weapons production facilities ($14 billion).

*** Office of Science ***

Total funding for the DOE Office of Science was cut by 1% to $3.43 billion in the president's request. Within the Office of Science, the Basic Energy Sciences (BES) programs would receive $1.06 billion, up 5.2%. The Chemical Sciences, Geosciences, and Biological Energy Sciences account within BES is slated to receive $228 million, an increase of 4% above last year's request.

Also within the Office of Science, the Biological and Environmental Research program would receive nearly $501 million, down almost 22% from last year, but up slightly from the FY03 budget.

*** Nuclear Waste Disposal ***

Last year's decision by the President and Congress to accept the Yucca Mountain site as the nation's permanent disposal site for high-level nuclear waste means that the project has moved into its second phase. After more than 20 years and $4 billion in site characterization, funding for Yucca Mountain will now be focused primarily on activities to support the submission of a license application to the U.S. Nuclear Regulatory Commission. The budget request includes $591 million for licensing and program management activities, basically flat from last year's request but an increase of nearly 58% from the allocation two years ago. Within this amount, there is a sizable jump in funding for activities related to waste acceptance, storage, and transportation in anticipation of the repository accepting waste by 2010.

*** Environmental Management ***

The Office of Environmental Management (EM) is responsible for managing the cleanup of the environmental legacy of the nation's nuclear weapons program – everything from research to testing to production. The total EM request comes to $7.4 billion, a 4.1% increase from the comparable FY 2004 budget request. The budget request states that this level of funding should provide the resources for EM to work towards its goal to complete cleanup of 89 of the 114 sites by the end of 2006.

*** Geothermal ***

Geothermal technology funded under the DOE Office of Energy Efficiency and Renewable Energy (EERE) is marked for an increase of 1% from last year's request, to total $25.8 million. Again, research related to hydrogen has won out over the established programs within this account. In total, EERE has requested $374 million, an increase of 1.2% from last year's request.

To keep up-to-date with the latest information about how Congress plans to fund these programs within the Department of Energy, click on http://www.agiweb.org/gap/legis108/appropsfy2005_energy.html.

*** Fossil Energy Program ***

The Department of Energy's Office of Fossil Energy (FE) requested a total of $729 million, a decrease of just over 9% from last year's funding level. Within that total, R&D programs would receive $636 million, a cut of over 5% from last year's level. More than 60% of the R&D funding goes to the president's $447 million Coal Research Initiative (CRI), which is predominantly directed at downstream technology. CRI does include $49 million for carbon sequestration R&D, which marks a 19% increase from last year's allocation.

Funding for oil and natural gas R&D combined make up only 6.5% of the total Fossil Energy R&D budget, a percentage that continues to drop with each new request. Funding for Natural Gas Technologies totals $26 million, a 40% cut from last year. Also funded through the natural gas account is $6 million for joint research with industry into the potential of gas hydrates as a future energy resource. The funding for hydrates is down 36% from last year, for a total of $6 million. The budget proposes to consolidate a number of programs under the Natural Gas Exploration and Production account into a new Sustainable Supply account while cutting 21% from last year's allocation. According to budget documents, this consolidation is in part due to a federal government-wide assessment of programs that encourages management to "phase out programs and activities that are neither productive nor integral to the program's mission and goals."

Simply put, the Oil Technology R&D account is gutted in the president's request. As with natural gas, programs within the Oil Exploration and Production account have been consolidated but with much more dramatic cuts. The total Oil Technology request is $26 million, a 40% cut from last year. Funding for the Oil Exploration and Production account was slashed to a total of $3 million, down 84% from last year's funding level. Also within the overall FE funding is $20 million for the Naval Petroleum & Oil Shale Reserves (NPR).

The FE budget document is available at http://fossil.energy.gov/budget/.

The Government Affairs Program will track the funding path for DOE's fossil energy program in the coming months. Up-to-date information can be found by logging on to http://www.agiweb.org/gap/legis108/appropsfy2005_interior.html.

Special update prepared by Emily M. Lehr, AGI Government Affairs Program and Gayle Levy, AGI/AAPG 2004 Spring Semester Intern.

Sources: American Institute of Physics, Environment and Energy Daily, Greenwire, The Washington Post, the Department of Energy website.

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