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Hearing Of The Senate Committee on Energy and Natural Resources - Testimony On The U.S. Department Of Energy's Budget For Fiscal Year 2011


Location: Washington, DC

Hearing Of The Senate Committee on Energy and Natural Resources - Testimony On The U.S. Department Of Energy's Budget For Fiscal Year 2011

Chairman Bingaman, Ranking Member Murkowski, and Members of the Committee,
thank you for the opportunity to appear before you today to discuss the President's Fiscal Year
2011 budget request for the Department of Energy.
President Obama has stated, "The nation that leads the world in creating new sources of
clean energy will be the nation that leads the 21st century global economy." I fervently share this view. The President's FY 2011 budget request of $28.4 billion will help position the United
States to be the global leader in the new energy economy. The budget request makes much-
needed investments to harness the power of American ingenuity. This request will create clean
energy jobs, expand the frontiers of science, reduce nuclear dangers, and help curb the carbon
pollution that threatens our planet. As part of this Administration's commitment to fiscal
responsibility, the Department of Energy is also proposing several program reductions and

American Recovery and Reinvestment Act
The FY11 budget request builds on the investments in the American Recovery and
Reinvestment Act. Through the $36.7 billion the Department received from the Recovery Act,
we are putting Americans to work, while helping to build a clean energy economy, spur energy
innovation, and reduce our dependence on oil. We've begun to make our homes and offices
more energy efficient, modernize our grid, and invest in key renewable energy projects. Getting
this money out the door quickly, carefully, and transparently has been and will continue to be a
top priority for me.
FY11 Budget Supports Strategic Priorities
To continue the progress we have made, the FY11 budget request supports the
Department's strategic priorities of:

Transitioning to a low-carbon economy by developing and deploying clean and
efficient energy technologies, increasing generation capacity and improving our transmission capabilities; Investing in scientific discovery and innovation to find solutions to pressing energy challenges and maintain American economic competitiveness; and Enhancing national security by ensuring the safety, security and effectiveness of the nuclear stockpile without testing. The budget request also includes funds to work with our international partners to secure vulnerable nuclear material around the world within four years, and advance our nuclear legacy cleanup.

These strategic priorities will be enabled by a continued commitment to improving the
management and fiscal performance of the Department.
To transition to a low-carbon future, we must change the way we generate and use
energy. The President's budget request invests in clean energy priorities, including an
investment of $2.4 billion in energy efficiency and renewable sources of energy. It also
promotes innovative energy efficiency and renewable energy projects through $500 million in
credit subsidy that will support $3 to $5 billion in lending. It expands the Advanced
Manufacturing Tax Credit by $5 billion to help build a robust domestic manufacturing capacity
for clean energy technologies. Through this budget, we will increase research, demonstration,
and deployment of wind, solar and geothermal energies; make buildings and homes more
efficient; develop energy efficient vehicles; and pursue carbon capture and sequestration.
Nuclear energy must also be a part of our clean energy mix. During his State of the
Union address last week, President Obama said, "To create more of these clean energy jobs, we
need more production, more efficiency, more incentives. And that means building a new
generation of safe, clean nuclear power plants in this country." The President and I are
committed to restarting our domestic nuclear industry. Our budget request includes an additional
$36 billion in loan guarantee authority for the nuclear power sector to help construct the first new
nuclear plants in decades, as well as $495 million for research and development to support the
competitiveness, safety and proliferation resistance of nuclear energy in the United States and
We have many technologies in hand today to begin the transition to a low-carbon
economy, but we will need breakthroughs and better technologies to meet our long-term goals.
The budget request invests in basic and applied research and puts us on the path to doubling
funding for science, a key presidential priority. We are also requesting $55 million to start the
RE-ENERGYSE initiative to help educate the next generation of scientists and engineers.
The budget request also supports the Department's three new, complementary approaches to marshalling the nation's brightest minds to accelerate energy breakthroughs.
The first approach is the Energy Innovation Hubs. The Hubs are multidisciplinary,
goal-oriented, and will be managed by top teams of scientists and engineers with enough
resources and authority to move quickly in response to new developments. They are to be
modeled after laboratories such as MIT's Radiation Laboratory, which developed radar during
World War II, and Bell Laboratories when it invented and developed the transistor. Ideally, this
work will be conducted under one roof. The Department will continue funding the three Energy
Innovation Hubs introduced in FY 2010. In addition, we are proposing a new Hub to
dramatically improve batteries and energy storage.
The second approach is the Energy Frontier Research Centers. The EFRCs are mainly
university-based, problem-oriented research. We have identified key scientific barriers to energy
breakthroughs, and we believe we can clear these roadblocks faster by linking together small
groups of researchers across departments, schools, and institutions.
The third funding approach is the Advanced Research Projects Agency -- Energy
(ARPA-E). ARPA-E is technology-oriented. We are seeking the boldest and best ideas for
potentially transformative energy technologies and funding them to see if they work. The
FY 2011 budget request includes $300 million for ARPA-E.
In addition to the health of our economy and our planet, the Department of Energy is
focused on the safety and security of our people. Last April in Prague, President Obama outlined
an ambitious agenda to address the greatest threat to global security -- the danger of terrorists
getting their hands on nuclear weapons or the material to build them. The Department is
requesting a significant increase in the budget -- more than $550 million in new funding -- for the
NNSA Defense Nuclear Nonproliferation program to help meet the President's goal of securing
all vulnerable nuclear materials around the world in four years.
The President has also made clear that, as long as nuclear weapons continue to exist, it is
essential that we ensure the safety, security and effectiveness of our nuclear stockpile. With the
$7 billion in funds we have requested, we can upgrade our infrastructure that has been allowed to
decay in the past decade, support the cutting-edge work of our National Labs, and recruit the
skilled workforce we need today and in the future. Over the next five years, we intend to boost
this funding by more than $5 billion. Even in a time of tough budget decisions, we must make
this investment for the sake of our security.
The budget also protects public health and safety by cleaning up the environmental
legacy of the Nation's nuclear weapons program. Additionally, it instructs the Department to
discontinue its application to the U.S. Nuclear Regulatory Commission for a license to construct
a high-level waste geologic repository at Yucca Mountain. On Monday, the Department filed a
motion with the NRC to stay all proceedings for 30 days. During this time, we will file a formal
motion to withdraw the application.
Both the President and I have made clear that Yucca Mountain is not an option. To deal
with our nuclear waste management needs, the Administration has brought together a range of
experts to conduct a comprehensive review of the back end of the fuel cycle. The Blue Ribbon
Commission announced last week, and co-chaired by General Brent Scowcroft and Congressman
Lee Hamilton, will provide recommendations for developing a safe, long-term solution to
managing the Nation's used nuclear fuel and its nuclear waste.
As part of our comprehensive strategy to restart the nuclear industry, we also propose
breaking down artificial stovepipes and merging the Office of Civilian Radioactive Waste
Management into the Office of Nuclear Energy.
Finally, in order to transform the way Americans generate and use energy, we must
transform the Department itself. As part of the Obama Administration's reform agenda, the
budget request includes $2 million to establish a new Management Reform initiative to provide
strategic direction, coordination and oversight of reform initiatives. This initiative will report
directly to me and will receive close personal attention. We made important reforms when we
began to implement the Recovery Act, and now we need to institutionalize those reforms and
apply them across the Department.
Additionally, we are committed to being good stewards of the taxpayers' money. As we
developed the budget, we looked to eliminate or reduce programs where we could. For example,
we eliminated more than $2.7 billion in tax subsidies for oil, coal and gas industries. This step is
estimated to generate more than $38.8 billion in revenue for the federal government over the next
10 years.
Building a clean energy future won't be easy, but it is necessary for our economy and our
security. As a scientist, I am an optimist, and I believe that we can meet this challenge and lead
the world in the 21st century.
The Department's Fiscal Year (FY) 2011 budget request of $28.4 billion, a 6.8 percent or $1.8
billion increase from FY 2010, supports the President's commitment to respond in a considered,
yet expeditious manner to the challenges of rebuilding the economy, maintaining nuclear
deterrence, securing nuclear materials, improving energy efficiency, incentivizing production of
renewable energy, and curbing greenhouse gas emissions that contribute to climate change.
Together with the American Recovery and Reinvestment Act of 2009 (Recovery Act) and
FY 2010 budget, the FY 2011 budget request supports investment for a multi-year effort to
address these interconnected challenges.
The FY 2011 budget builds on the $36.7 billion in Recovery Act funding. By the end of
FY 2010, the Department expects to obligate 100 percent and outlay roughly 35-40 percent of
Recovery Act funds. In developing the FY 2011 budget request, the Department has taken these
investments into account. Recovery Act investments in energy conservation and renewable
energy sources ($16.8 billion), environmental management ($6 billion), loan guarantees for
renewable energy and electric power transmission projects ($4 billion), grid modernization ($4.5
billion), carbon capture and sequestration ($3.4 billion), basic science research ($1.6 billion), and
the establishment of the Advanced Research Projects Agency - Energy ($0.4 billion) will
continue to strengthen the economy by providing much-needed investment, by saving or creating
tens of thousands of direct jobs, cutting carbon emissions, and reducing U.S. dependence on oil.
The President's FY 2011 Budget supports our three strategic priorities:
Innovation: Investing in science, discovery and innovation to provide solutions to
pressing energy challenges
Energy: Providing clean, secure energy and promoting economic prosperity through
energy efficiency and domestic forms of energy
Security: Safeguarding nuclear and radiological materials, advancing responsible legacy
cleanup, and maintaining nuclear deterrence
These strategic priorities will be enabled by a continued commitment to management excellence:
Management: Transforming the culture of the Department with a results-oriented
Innovation: Investing in Science, Discovery and Innovation to Provide Solutions to
Pressing Energy Challenges
As President Obama made clear in his remarks to the National Academy of Sciences in
April 2009, the public sector must invest in research and innovation not only because the private
sector is sometimes reluctant to take large risks, but because the rewards will be broadly shared
across the economy. Leading requires assembling a critical mass of the best scientists and
engineers to engage in mission-oriented, cross-disciplinary approaches to addressing current and
future energy challenges. To develop clean energy solutions and maintain nuclear security, the
Department must cultivate the science, technology, engineering, and mathematics workforce of
the next generation. The FY 2011 budget request of $55 million for RE-ENERGYSE
(Regaining our ENERGY Science and Engineering Edge) supports K-20+ science and
engineering education.
With every initiative the Department undertakes, sound science must be at the core. In FY 2011
the Department will increasingly emphasize cross-cutting initiatives to link science throughout
the Department, specifically with energy and national security programs. These cross-cutting
initiatives will enhance science capabilities to create knowledge and innovative technologies that
can be brought to bear on national energy and security issues, leverage world-class science and
engineering expertise to establish global leadership as clean energy innovators, and employ
use-inspired research to reduce the cost and time to bring technologies to market at scale. The
Department believes that it will deliver solutions more quickly and efficiently through our efforts
to break down the traditional stovepipes and operate in a more integrated and coordinated
manner. The FY 2011 Budget continues to address the President's priorities in an integrated and
efficient manner, and to deliver results for the American taxpayer.
The Department continues its strong commitment to basic research and supports the President's
Plan for Science and Innovation by requesting funding for the Office of Science at $5.1 billion, a
4.4 percent or $218 million increase from FY 2010. The FY 2011 budget request will support
the training of students and researchers in fields critical to national competitiveness and
innovation, and will support investments in areas of research essential for a clean energy future.
The President's Plan commits to doubling Federal investment in basic research at select
agencies. The Department supports an overarching commitment to science by investing in basic
and applied research, creating new incentives for private innovation and promoting
breakthroughs in energy.
To help achieve the game-changing breakthroughs needed to continue leading the global
economy, the FY 2011 budget request includes $300 million for the Advanced Research Projects
Agency -- Energy (ARPA-E). Introduced in FY 2009, ARPA-E is responsible for enabling
specific high-risk and high-payoff transformational research and development projects. Beyond
simply funding transformational research that creates revolutionary technologies, ARPA-E is
dedicated to the market adoption of those new technologies to meet the Nation's long-term
energy challenges. This funding, along with the $400 million made available through the
Recovery Act, will provide sustained investment in this pioneering program.
The Department will continue funding the three Energy Innovation Hubs introduced in FY 2010
to focus on developing fuels that can be produced directly from sunlight, improving energy
efficient building systems design, and using modeling and simulation tools to create a virtual
model of an operating advanced nuclear reactor. In addition, DOE is proposing a new Hub to
focus on batteries and energy storage. Each of these Hubs will bring together a multidisciplinary
team of researchers in an effort to speed research and shorten the path from scientific discovery
to technological development and commercial deployment of highly promising energy-related
Complementing the Hubs, the Department proposes expanding the Energy Frontier Research
Centers in FY 2011 to capture new, emerging opportunities by furthering its scientific reach and
potential technological impact by competitively soliciting in two categories: discovery and
development of new materials critical to science frontiers and technology innovations, and basic
research for energy needs.
Energy: Providing Clean, Secure Energy and Promoting Economic Prosperity through
Energy Efficiency and Domestic Forms of Energy
In Copenhagen, President Obama emphasized that climate change is a grave and growing
danger. The imperative now is to develop the capacity to confront the challenges climate change
poses and seize the opportunity to be the global leader in the clean energy economy. Meeting the
Administration's goal to reduce carbon emissions by more than 80 percent by 2050 will be
achieved by addressing supply and demand through increased energy efficiency, renewable
generation, and grid modernization, as well as improvements in existing technologies and
information analysis. An important tool that will continue to be used to address these issues will
be loan guarantees. The Department's FY 2011 budget request, building on the FY 2010 budget
and the Recovery Act, invests in the research, development, and deployment of technologies that
will position the United States to lead international efforts to confront climate change now and in
the future. The long-term economic recovery will be sustained by these continued investments
in the new energy economy.
* Loan Guarantees
The Loan Guarantee Program Office (LGPO) is a vital tool for promoting innovation in the
energy sector across a broad portfolio of clean and efficient energy technologies. In FY 2011,
the Department is requesting funding and authority to support approximately $40 billion of
innovative energy technology development. During FY 2010, the LGPO streamlined the
application review process. In FY 2011, the Department will continue to accelerate the
availability of loans to leverage private sector investment in clean energy projects that will save
and create jobs and stimulate the economy.
* Energy Efficiency
In August 2009, President Obama said, "If we want to reduce our dependence on oil, put
Americans back to work and reassert our manufacturing sector as one of the greatest in the
world, we must produce the advanced, efficient vehicles of the future." In FY 2011, the
Department will promote energy efficiency in vehicles technologies, at $325 million. No less
important to achieving the President's stated ambitions is decreasing energy consumption
through developing and advancing building technologies ($231 million) and industrial
technologies ($100 million). Federal assistance for state-level programs, such as State Energy
Program grants ($75 million, a 50 percent increase from FY 2010) and Weatherization
Assistance grants ($300 million, a 43 percent increase from FY 2010), will help States and
individuals take advantage of efficiency measures for buildings and homes, lower energy costs
and greenhouse gas emissions, and develop an ever-evolving, technically proficient workforce.
* Clean, Renewable Energy Generation
The FY 2011 budget request will modernize the Nation's energy infrastructure by investing in a
variety of renewable sources such as solar ($302 million), wind ($123 million), water ($41
million), hydrogen ($137 million), biomass ($220 million) and geothermal ($55 million). These
sources of energy reduce the production of greenhouse gas emissions and continue the pursuit of
a clean energy economy built on the next generation of domestic production. The Department is
also continuing to promote domestic clean energy through the four Power Marketing
Administrations, which market and deliver electricity primarily generated by hydroelectric dams.
* Grid Modernization
In support of the modernization of the electricity grid, the President's FY 2011 Budget requests
$144 million for research and development to improve reliability, efficiency, flexibility, and
security of electricity transmission and distribution networks. The "Smart Grid" will integrate
new and improved technologies into the energy mix, ensuring reliability, integration of
renewable energy resources, and improving security.
While investing in energy efficiency, renewable energy generation, and grid modernization are
fundamental steps necessary for creating a clean energy economy; investing in the improvement
of existing sources of energy will provide a bridge between current and future technologies
These technologies are already a major segment of the energy mix and will play a critical role in
providing a solid foundation that will make possible the creation of this new economy.
* Safe and Secure Nuclear Energy
Nuclear energy currently supplies approximately 20 percent of the Nation's electricity and
70 percent of the Nation's clean, non-carbon electricity. The request for the Office of Nuclear
Energy includes $495 million for research, development, and demonstration in addition to
investments in supportive infrastructure. Work on advanced reactor technologies, fuel cycle
technologies, waste management, and cross-cutting technologies and transformative concepts
will help ensure that nuclear energy remains a safe, secure, economical source of clean energy.
The Department will also promote nuclear energy through the Loan Guarantee Program, which is
requesting an additional $36 billion in loan authority for nuclear power in FY 2011 (for a total of
$54.5 billion).
* Clean and Abundant Fossil Energy
The world will continue to rely on coal fired electrical generation to meet energy demand. It is
imperative that the United States develop the technology to ensure that base-load electricity
generation is as clean and reliable as possible. The Office of Fossil Energy will invest $438
million in the research and development of advanced coal-fueled power systems and carbon
capture and storage technologies. This will allow the continued use of the abundant domestic
coal resources in the U.S. while reducing greenhouse gas emissions.
Accurate energy information and analysis play a critical role in promoting efficient energy
markets and informing policy-making and strategic planning. This budget requests a total of
$129 million for the Energy Information Administration, the statutory statistical agency within
the Department, to improve energy data and analysis programs.
Security: Safeguarding Nuclear and Radiological Materials, Advancing Responsible
Legacy Cleanup and Maintaining Nuclear Deterrence
* Reduces the Risk of Proliferation
In an April 2009 speech in Prague, the President called the threat of nuclear proliferation "the
most immediate and extreme threat to global security" and announced his support for a new
international effort to secure all vulnerable nuclear material around the world within four years.
The FY 2011 budget for the NNSA Defense Nuclear Nonproliferation program supports this
effort, recognizing the urgency of the threat and making the full commitment to global
cooperation that is essential to addressing this threat. The budget provides $2.7 billion in
FY 2011, and $13.7 billion through FY 2015 to detect, secure, and dispose of dangerous nuclear
and radiological material worldwide. This request is an increase of 26 percent or $550 million
from FY 2010. The budget supports cooperative nonproliferation initiatives with foreign
governments and the effort and expertise to forge them into durable international partnerships,
achieving the objective of a world without nuclear weapons. The budget continues the
installation of radiation detection equipment at international border crossings and Megaports,
significantly expands materials protection and control security upgrades at selected sites in
foreign countries to address outsider and insider threats, and accelerates the pace of highly
enriched uranium research reactor conversions with an urgent focus to develop the capability to
produce the medical isotope molybdenum-99 in the U.S. using low enriched uranium. The FY
2011 budget request provides $4.4 billion over five years for Fissile Materials Disposition
including the construction of U.S. facilities for the disposition of U.S. weapons-grade plutonium
in fulfillment of our commitment with the Russian Federation under the Plutonium Management
and Disposition Agreement of September 2000, and provides the first $100 million of a $400
million U.S. commitment to advance the construction of plutonium disposition facilities in the
Russian Federation. The FY 2011 budget request also supports a funding increase for
Nonproliferation and Verification Research and Development for new technologies in support of
treaty monitoring and verification.
* Leverages Science to Maintain Nuclear Deterrence
The FY 2011 budget request advances the Department's commitment to the national security
interests of the United States through stewardship of a safe, secure and effective nuclear weapons
stockpile without the use of underground nuclear testing. As the role of nuclear weapons in our
Nation's defense evolves and the threats to national security continue to grow, the focus of this
enterprise must also change and place its tremendous intellectual capacity and unique facilities in
the service of addressing other challenges related to national defense. NNSA is taking steps to
move in this direction, including functioning as a national science, technology, and engineering
resource to other agencies with national security responsibilities. NNSA must ensure our
evolving strategic posture places the stewardship of our nuclear stockpile, nonproliferation
programs, counterterrorism, missile defenses, and the international arms control objectives into
one comprehensive strategy that protects the American people and our allies. Through the
NNSA, the Department requests $7.0 billion for the Weapons Activities appropriation, a 9.8
percent or $624 million increase from the FY 2010 appropriation. This increase provides a
strong basis for transitioning to a smaller nuclear stockpile, strengthens the science, technology
and engineering base, modernizes key nuclear facilities, and streamlines the enterprise's physical
and operational footprint.
These investments will enable execution of a comprehensive nuclear defense strategy based on
current and projected global threats that relies less on nuclear weapons, yet enhances national
security by strengthening the NNSA's nuclear security programs. This improved NNSA
capability base will mitigate the concerns regarding ratification of the follow-on Strategic Arms
Reduction Treaty and the Comprehensive Test Ban Treaty. The FY 2011 request for Weapons
Activities has four major components. The request for Stockpile Support increases, reflecting
the President's commitment to maintain the safety, security and effectiveness of the nuclear
deterrent without underground nuclear testing, consistent with the principles of the Stockpile
Management Program outlined in Section 3113 (a)(2) of the National Defense Authorization Act
of Fiscal Year 2010 (50 U.S.C. 2524). The request for Science, Technology and Engineering
increases by over 10 percent, and provides the funding necessary to protect and advance the
scientific capabilities at the U.S. nuclear security laboratories supporting the stockpile and
broader national security and energy issues. The budget request for Infrastructure supports the
operation and maintenance of the government-owned, contractor-operated facilities in the
nuclear security enterprise, as well as special capabilities for secure transportation and
construction. The security and counterterrorism component of the budget provides for physical
and cyber security in the NNSA enterprise, as well as emergency response assets and NNSA's
focused research and development contribution to the Nation's counterterrorism efforts.
* Advances Responsible Environmental Cleanup
The FY 2011 budget includes $6 billion for the Office of Environmental Management to protect
public health and safety by cleaning up hazardous, radioactive legacy waste from the Manhattan
Project and the Cold War. This funding will allow the program to continue to accelerate
cleaning up and closing sites, focusing on activities with the greatest risk reduction.
As the Department continues to make progress in completing clean-up, the FY 2011 budget
request of $189 million for the Office of Legacy Management supports the Department's
long-term stewardship responsibilities and payment of pensions and benefits for former
contractor workers after site closure.
The Administration has determined that the Yucca Mountain repository is not a workable option
and has decided to terminate the Office of Civilian Radioactive Waste Management. The core
functions and staff to support efforts under the Nuclear Waste Policy Act to meet the obligation
of the Government will transfer to the Office of Nuclear Energy by the end of FY 2010.
Management: Transforming the Culture of the Department with a Results-Oriented
In order to transform the way Americans use and produce energy, we must transform the
Department of Energy. The Department is committed to strengthening its management culture
and increasing its focus on results. The implementation of the Recovery Act provided the
Department with an opportunity to continue to refine best practices in management,
accountability, operations, and transparency. These best practices will be applied in executing
the FY 2011 budget.
To achieve our strategic priorities, the Department requests a net of $169 million for
Departmental Administration. These funds, along with resources in individual program offices,
will help transform key functional areas such as human, financial, project, and information
technology management. The request includes $2 million for Management Reform within the
Office of the Secretary, which will provide the Department with strategic direction, coordination,
and oversight of reform initiatives.
Office of Science: Supporting Cutting-Edge Foundational Scientific Research
The Department of Energy's Office of Science (SC) delivers discoveries and scientific tools that
transform our understanding of energy and matter and advance the national, economic, and
energy security of the United States. SC is a primary sponsor of basic research in the United
States, leading the Nation to support the physical sciences in a broad array of research subjects in
order to improve energy security and address issues ancillary to energy, such as climate change,
genomics, and life sciences. In FY 2011, the Department requests $5.1 billion, an increase of 4.4
percent over the enacted FY 2010 appropriation, to invest in science research. The FY 2011
request supports the President's Plan for Science and Innovation, which encompasses the entire
SC budget, as part of a strategy to double overall basic research funding at select agencies. As
part of this plan, the budget request supports the training of students and researchers in fields
critical to our national competitiveness and innovation economy, and supports investments in
areas of research critical to our clean energy future and to making the U.S. a leader on climate
SC is addressing critical societal challenges and key missions of the Department of Energy
through significant improvements in existing technologies and development of new energy
technologies. SC will accomplish this by: (1) sustained investments in exploratory and high-risk
research in traditional and emerging disciplines, including the development of new tools and
facilities; (2) focused investments in high-priority research areas; and (3) investments that train
new generations of scientists and engineers to be leaders in the 21st century. The FY 2011
budget request supports all three of these investment strategies.
Two of the four Energy Innovation Hubs being requested in FY 2011 are through the Office of
Science; these Hubs will bring together teams of experts from multiple disciplines to focus on
two grand challenges in energy: (1) Fuels from Sunlight, a Hub established in FY 2010 and
(2) Batteries and Energy Storage, a new Hub in the FY 2011 request.
The Energy Frontier Research Centers (EFRC) program will be expanded in the FY 2011 request
to capture new, emerging opportunities by furthering its scientific reach and potential
technological impact. New EFRCs will be competitively solicited in two categories: discovery
and development of new materials that are critical to both science frontiers and technology
innovations, and basic research for energy needs in a limited number of areas that are
underrepresented in the 46 original EFRC awards.
The FY 2011 request for the U.S. ITER Project ($80 million, a decrease of $55 million from
FY 2010) is a reflection of the pace of ITER construction as of the end of 2009. The
Administration is engaged in a range of efforts to implement management reforms at the ITER
Organization and accelerate ITER construction while minimizing the overall cost of the
Construction Phase for the U.S. and the other ITER members.
The Office of Science supports investigators from more than 300 academic institutions and from
all of the DOE laboratories. The FY 2011 budget request will support approximately 27,000
Ph.D.s, graduate students, undergraduates, engineers, and technicians. Nearly 26,000 researchers
from universities, national laboratories, industry, and international partners are expected to use
SC scientific user facilities in FY 2011.
Advanced Research Projects Agency -- Energy: Transformational Research and
The FY 2011 budget request includes $300 million for the Advanced Research Projects Agency
-- Energy (ARPA-E), a program launched in FY 2009 that sponsors specific high-risk and
high-payoff transformational research and development projects that overcome the long-term
technological barriers in the development of energy technologies to meet the Nation's energy
challenges, but that industry will not support at such an early stage. An essential component of
ARPA-E's culture is an overarching focus on accelerating science to market. Beyond simply
funding transformational research creating revolutionary technologies, ARPA-E is dedicated to
the market adoption of those new technologies that will fuel the economy, create new jobs,
reduce energy imports, improve energy efficiency, reduce energy-related emissions, and ensure
that the U.S. maintains a technological lead in developing and deploying advanced energy
Office of Energy Efficiency and Renewable Energy: Developing and Deploying Clean,
Reliable Energy
The Office of Energy Efficiency and Renewable Energy (EERE) strengthens the energy security,
environmental quality, and economic vitality of the U.S. through the research, development,
demonstration and deployment (RDD&D) of clean energy technologies and generation and
advances in energy efficiency. EERE's activities are critical to creating a low carbon economy
and sustaining strong economic growth and job creation while dramatically reducing greenhouse
gas emissions and energy imports. EERE programs link advances in basic research and the
creation of commercially successful products and services to ensure delivery to the marketplace
for general use and implementation.
The FY 2011 budget request of $2.4 billion, an increase of 5 percent over FY 2010, is aimed at
accelerating revolutionary change in the Nation's energy economy. The request includes
programs associated with meeting the President's goals of investing in the next generation of
clean energy technologies, vehicles and fuels, and energy efficiency measures that reduce energy
use in Federal agencies and the industrial and building sectors.
Clean, Renewable Energy Generation
The FY 2011 budget request continues to work to transform the Nation's energy infrastructure
by investing over $650 million in a variety of renewable sources of electrical generation such as
solar ($302 million, a 22 percent increase over FY 2010), and wind ($123 million, a 53 percent
increase over FY 2010), as well as deploy clean technologies to reduce our dependence on oil.
The request includes expansions on Concentrating Solar Power, biopower and off-shore wind,
which will provide new, additional avenues for clean energy development and deployment.
These technologies will reduce the production of greenhouse gas emissions and revitalize an
economy built on the next generation of domestic production.
Energy Efficiency
The Department implements a number of efforts to increase energy efficiency and conservation
in homes, transportation, and industry. The FY 2011 budget requests $758 million to accelerate
deployment of clean, cost-effective, and rapidly deployable energy conservation measures in
order to reduce energy consumption in residential and commercial buildings, and the industrial
and Federal sectors. The Department will invest $231 million in the Building Technologies
program, a 16 percent increase over FY 2010 for built environment R&D. Federal assistance for
state-level programs such as State Energy Program grants ($75 million) and Weatherization
Assistance Program ($300 million), will continue to help citizens implement energy conservation
measures, lower energy costs and greenhouse gas emissions, and build a technical workforce.
The FY 2011 request also includes $545 million to accelerate research, development and
deployment of advanced fuels and vehicles to reduce the use of petroleum and greenhouse gas
emissions. The FY 2011 budget complements the Recovery Act funding for these programs
($3.1 billion for State Energy Programs, $5 billion for Weatherization Assistance, $2 billion for
Advanced Battery Manufacturing and $400 million for Transportation Electrification).
Office of Electricity Delivery and Energy Reliability: Moving Toward a More Intelligent
Grid to Power the Digital Economy
The FY 2011 budget request for the Office of Electricity Delivery and Energy Reliability (OE)
budget is $186 million, an increase of 8 percent over FY 2010. These funds will build on the
"Smart Grid" investments and other activities.
The ability of the United States to meet the growing demand for reliable electricity is challenged
by an aging power grid under mounting stress. Despite the increasing demand for reliable power
brought on by the modern digital economy, the power grid in the U.S. has suffered from a long
period of underinvestment. Much of the power delivery system was built on technology
developed over 50 years ago and thus responds to disturbances with speed limited by the
technology of that period. This limitation increases the vulnerability of the power system to
outages that can spread quickly and impact whole regions. Breakthroughs in digital network
controls, transmission, distribution, and energy storage will make the power grid more efficient,
alleviating the stress on the system, as well as enable greater use of clean and distributed energy
sources. The return on these investments will come from a reduction in economic losses caused
by power outages and the delay or avoidance of costly investment in new generation and
transmission infrastructure.
The budget request provides $144 million for research and development, which supports
development of technologies that will improve the reliability, efficiency, flexibility,
functionality, and security of the Nation's electricity delivery system. It accelerates investment
in energy storage capabilities and funds two new research initiatives: Advanced Modeling Grid
Research, to develop grid-modeling capabilities using the large volumes of data generated by
advanced sensors deployed on the grid; and Power Electronics, to develop new power control
devices in collaboration with universities. The proposal also continues to support the
development of "Smart Grid" technologies and cyber security systems for the power grid.
The budget request continues support for Permitting, Siting, and Analysis ($6.4 million) to
assist States, regional entities, and other federal agencies in developing policies and programs
aimed at modernizing the power grid; and for Infrastructure Security and Energy Restoration
($6.2 million) to enhance the reliability and resiliency of U.S. critical infrastructure and facilitate
its recovery from energy supply disruptions.
Office of Environmental Management: Reducing Risks and Making Progress
The mission of the Office of Environmental Management (EM) is to complete the safe cleanup
of the environmental legacy brought about from over six decades of nuclear weapons
development, production, and Government-sponsored nuclear energy research. This cleanup
effort is the largest in the world, originally involving two million acres at 107 sites in 35 states,
dealing with some of the most dangerous materials known to man.
EM continues to pursue its cleanup objectives within the overall framework of achieving the
greatest comparative risk reduction benefit and overlaying regulatory compliance commitments
and best business practices to maximize cleanup progress. To support this approach, EM has
prioritized its cleanup activities:
Activities to maintain a safe and secure posture in the EM complex
Radioactive tank waste stabilization, treatment, and disposal
Used nuclear fuel storage, receipt, and disposition
Special nuclear material consolidation, processing, and disposition
High priority groundwater remediation
Transuranic and mixed/low-level waste disposition
Soil and groundwater remediation
Excess facilities deactivation and decommissioning
The FY 2011 budget request for $6.0 billion will fund activities to maintain a safe and secure
posture in the EM complex and make progress against program goals and compliance
commitments, including reduction of highest risks to the environment and public health, use of
science and technology to reduce life cycle costs, and reduction of EM's geographic footprint by
40 percent by 2011. EM continues to move forward with the development of the capability for
dispositioning tank waste, nuclear materials, and used nuclear fuel. The budget request includes
the construction and operation of three unique and complex tank waste processing plants to treat
approximately 88 million gallons of radioactive tank waste for ultimate disposal. It will also
fund the solid waste disposal infrastructure needed to support disposal of transuranic and
low-level wastes generated by high-risk activities and the footprint reduction activities. In
addition to the FY 2011 budget request, EM will continue to expend the $6 billion in Recovery
Act funding provided by Congress to complete lower-risk footprint reduction and near-term
completion cleanup activities.
EM carries out its cleanup activities with the interests of stakeholders in mind. Most
importantly, EM will continue to fulfill its responsibilities by conducting cleanup within a
"Safety First" culture that integrates environment, safety, and health requirements and controls
into all work activities to ensure protection to the workers, public, and the environment, and
adheres to sound project and contract management principles. EM is also strengthening its
project and planning analyses to better assess existing priorities and identify opportunities to
accelerate cleanup work. Working collaboratively with the sites, EM continues to seek
aggressive but achievable strategies for accelerating cleanup of discrete sites or segments of
work. In addition, functional and cross-site activities such as elimination of specific
groundwater contaminants, waste or material processing campaigns, or achievement of interim
or final end-states are being evaluated.
After the EM program completes cleanup and closure of sites that no longer have an ongoing
DOE mission, post closure stewardship activities are transferred to the Office of Legacy
Management (LM). LM also receives sites remediated by the U.S. Army Corps of Engineers
(Formerly Utilized Sites Remedial Action Program) and private licensees (Uranium Mill
Tailings Radiation Control Act, Title II sites). Post closure stewardship includes long-term
surveillance and maintenance activities such as groundwater monitoring, disposal cell
maintenance, records management, and management of natural resources at sites where active
remediation has been completed. At some sites the program includes management and
administration of pension and post-retirement benefits for contractor retirees.
The Administration has determined that developing a repository at Yucca Mountain, Nevada, is
not a workable option and has decided to terminate the Office of Civilian Radioactive Waste
Management (RW). The Nation needs a different solution for nuclear waste disposal. As a
result, in 2010, the Department will discontinue its application to the U.S. Nuclear Regulatory
Commission for a license to construct a high-level waste geologic repository at Yucca Mountain
and establish a Blue Ribbon Commission to inform the Administration as it develops a new
strategy for nuclear waste management and disposal. All funding for development of the Yucca
Mountain facility and RW will be eliminated by the end of FY 2010. The Administration
remains committed to fulfilling its obligations under the Nuclear Waste Policy Act. The Office
of Nuclear Energy will develop an integrated approach to improve the waste management
options for the Nation and support the Blue Ribbon Commission. Ongoing responsibilities under
the Nuclear Waste Policy Act, including administration of the Nuclear Waste Fund and the
Standard Contract, will continue under the Office of Nuclear Energy, which will lead future
waste management activities.
Innovative Technology Loan Guarantee Program and Advanced Technology Vehicle
Manufacturing Program: Supporting Investment in Innovation and Manufacturing
To encourage the early commercial production and use of new or significantly improved
technologies in energy projects, the Department is requesting an additional $36 billion in
authority to guarantee loans for nuclear power facilities and $500 million in appropriated credit
subsidy for the cost of loan guarantees for renewable energy systems and efficient end-use
energy technology projects under section 1703 of the Energy Policy Act of 2005. The additional
loan authority for nuclear power projects will promote near-term deployment of new plants and
support an increasing role for private sector financing. The additional credit subsidy will allow
for investment in the innovative renewable and efficiency technologies that are critical to
meeting the Administration's goals for affordable, clean energy, technical leadership, and global
The FY 2011 budget also requests $58 million to evaluate applications received under the eight
solicitations released to date and to ensure efficient and effective management of the Loan
Guarantee Program. This request will be offset by collections authorized under Title XVII of the
Energy Policy Act of 2005 (P.L. 109-8).
The Advanced Technology Vehicle Manufacturing program requests $10 million to support
ongoing loan and loan monitoring activities associated with the program mission of making
loans to automobile and automobile part manufacturers for the cost of re-equipping, expanding,
or establishing manufacturing facilities in the United States to produce advanced technology
vehicles or qualified components, and for associated engineering integration costs.
Office of Nuclear Energy: Investing in Energy Security and Technical Leadership
The Department is requesting $912 million for the Office of Nuclear Energy (NE) in FY 2011 --
an increase of 5 percent over the FY 2010 enacted level. NE's funding supports the
advancement of nuclear power as a resource capable of meeting the Nation's energy,
environmental, and national security needs by resolving technical, cost, safety, proliferation
resistance, and security barriers through research, development, and demonstration as
Currently, nuclear energy supplies approximately 20 percent of the Nation's electricity and over
70 percent of clean, non-carbon producing electricity. Over 100 nuclear power plants are
offering reliable and affordable baseload electricity in the United States, and they are doing so
without air pollution and greenhouse gas emissions. NE is working to develop innovative and
transformative technologies to improve the competitiveness, safety and proliferation resistance
of nuclear energy to support its continued use.
The FY 2011 budget supports a reorganized and refocused set of research, development, and
demonstration (RD&D) activities. This program is built around exploring, through RD&D:
technology and other solutions that can improve the reliability, sustain the safety, and extend the
life of current reactors; improvements in the affordability of new reactors to enable nuclear
energy to help meet the Administration's energy security and climate change goals;
understanding of options for nuclear energy to contribute to reduced carbon emissions outside
the electricity sector; development of sustainable nuclear fuel cycles; and minimization of risks
of nuclear proliferation and terrorism.
NE is requesting $195 million for Reactor Concepts Research, Development and Deployment.
This program seeks to develop new and advanced reactor designs and technologies. Work will
continue on design, licensing and R&D for the Next Generation Nuclear Plant to demonstrate
gas-cooled reactor technology in the United States. The program also supports research on
Generation IV and other advanced designs and efforts to extend the life of existing light water
reactors. In FY 2011, NE will initiate a new effort focused on small modular reactors, a
technology the Department believes has promise to help meet energy security goals.
The FY 2011 request includes $201 million for Fuel Cycle Research and Development to
perform long-term, results-oriented science-based R&D to improve fuel cycle and waste
management technologies to enable a safe, secure, and economic fuel cycle. The budget also
requests $99 million to support a new R&D program, Nuclear Energy Enabling Technologies,
focused on the development of cross-cutting and transformative technologies relevant to multiple
reactor and fuel cycle concepts. The Crosscutting Technology Development activity provides
crosscutting R&D support for nuclear energy concepts in areas such as advanced fuels and
reactor materials and creative approaches to further reduce proliferation risks. The
Transformative Nuclear Concepts R&D activity will support, via an open, competitive
solicitation process, investigator-initiated projects that relate to any aspect of nuclear energy
generation including, but not limited to, reactor and power conversion technologies, enrichment,
fuels and fuel management, waste disposal, and nonproliferation, to ensure that good ideas have
sufficient outlet for exploration. The Energy Innovation Hub for Modeling and Simulation will
apply existing modeling and simulation capabilities to create a "virtual" reactor user environment
to simulate an operating reactor. NE will also continue its commitments to investing in
university research, international cooperation, and the Nation's nuclear infrastructure -- important
foundations to support continued technical advancement.
Office of Fossil Energy: Abundant and Affordable Energy for the 21st Century
The FY 2011 budget request of $760 million for the Office of Fossil Energy (FE) will help
ensure that the United States can continue to rely on clean, affordable energy from traditional
domestic fuel resources. The United States has 25 percent of the world's coal reserves, and fossil
fuels currently supply 86 percent of the Nation's energy.
The Department is committed to advancing Carbon Capture and Storage (CCS) technologies in
order to promote a cleaner and more efficient use of fossil fuels. In addition to significant
Recovery Act funds, Advanced CCS with $438 million requested in FY 2011 is the foundation of
the Department's clean coal research program which seeks to establish the capability of
producing electricity from coal with near-zero atmospheric emissions.
In addition, $150 million of FE's $760 million request will be used to promote national energy
security through the continued operations of both the Strategic Petroleum Reserve and Northeast
Home Heating Oil Reserve programs. These programs protect the Nation and the public against
economic damages from potential disruptions in foreign and domestic petroleum supplies.
The National Nuclear Security Administration: Ensuring America's Nuclear Security and
Reducing the Global Threat of Nuclear Proliferation
The National Nuclear Security Administration (NNSA) continues significant efforts to meet
Administration priorities, leveraging science to promote U.S. national security objectives. The
FY 2011 President's budget request is $11.2 billion, an increase of 13 percent from the enacted
FY 2010 appropriation. The FY 2011-2015 President's Request for the NNSA is a significant
funding increase over FY 2010 levels, reflecting the President's priorities on global nuclear
nonproliferation and for strengthening the nuclear security posture of the United States to meet
defense and homeland security-related objectives:
Broaden and strengthen the NNSA's science, technology and engineering mission to meet
national security needs
Work with global partners to secure all vulnerable nuclear materials around the world
within four years
Work towards a world with no nuclear weapons. Until that goal is achieved, ensure the
U.S. nuclear deterrent remains safe, secure and effective
Transform the Nation's Cold-War era weapons complex into a 21st century national
security enterprise
Provide safe and effective nuclear propulsion for U.S. navy warships
The FY 2011 budget request of $7.01 billion for the Weapons Activities appropriation provides
funding for a wide range of programs. Some activities provide direct support for maintaining the
nuclear weapon stockpile, including stockpile surveillance, annual assessments, life extension
programs, and warhead dismantlement. Science, Technology and Engineering programs are
focused on long-term vitality in science and engineering, and on performing R&D to sustain
current and future stockpile stewardship capabilities without the need for underground nuclear
testing. These programs also provide a base capability to support scientific research needed by
other elements of the Department, to the federal government national security community, and
the academic and industrial communities. Infrastructure programs support facilities and
operations at the government-owned, contractor-operated sites, including activities to maintain
and steward the health of these sites for the long term. Security and counterterrorism activities
leverage the unique nuclear security expertise and resources maintained by NNSA to other
Departmental offices and to the Nation.
The Weapons Activities request is an increase of 9.8 percent over the FY 2010 enacted level.
This level is sustained and increased in the later outyears. The multi-year increase is necessary
to reflect the President's commitment to maintain the safety, security and effectiveness of the
nuclear deterrent without underground nuclear testing, consistent with the principles of the
Stockpile Management Program outlined in Section 3113 (a)(2) of the National Defense
Authorization Act of Fiscal Year 2010 (50 U.S.C. 2524). Increases are provided which directly
support of the nuclear weapon stockpile, for scientific, technical and engineering activities
related to maintenance assessment and certification capabilities, and for recapitalization of key
nuclear facilities. The President's Request provides funding necessary to protect the human
capital base at the national laboratories --including the ability to design and certify nuclear
weapons -- through a stockpile stewardship program that fully exercises these capabilities.
Security and nuclear counterterrorism activities decrease about 3 percent from the FY 2010
appropriated levels, leveraging the continuing efficiencies in the Defense Nuclear Security
The FY 2011 request for Defense Nuclear Nonproliferation is $2.7 billion, an increase of 25.8
percent over the FY 2010 appropriation. The increase is driven by the imperative for U.S.
leadership in nonproliferation initiatives both here and abroad. In addition to the programs
funded solely by the NNSA, our programs support the Department of Energy mission to protect
our national security by preventing the spread of nuclear weapons and nuclear materials to
terrorist organizations and rogue states. These efforts are implemented in part through the
Global Partnership against the Spread of Weapons and Materials of Mass Destruction, formed at
the G8 Kananaskis Summit in June 2002, and the Global Initiative to Combat Nuclear Terrorism,
launched in Rabat, Morocco, in October 2006.
The FY 2011 President's request for International Nuclear Materials Protection and Cooperation
reflects selective new security upgrades to buildings and areas that were added to the cooperation
after the Bratislava Summit, additional Second Line of Defense sites, and sustainability support
for MPC&A upgrades. The Global Threat Reduction Initiative increases by 68 percent in
support of the international effort to secure vulnerable nuclear materials around the world within
four years. The Fissile Materials Disposition program increases by 47 percent reflecting
continuing domestic construction of the MOX Fuel Fabrication Facility and the Waste
Solidification Building, as well as design documentation for a related pit disassembly and
conversion capability. A portion of the funding increase results from the transfer of funding
associated with the latter activity from the Weapons Activities appropriation starting in 2011.
The President's request of $1.1 billion for Naval Reactors is an increase of 13.3 percent over the
FY 2010 appropriated level. The program supports the U.S. Navy's nuclear fleet, comprised of
all of the Navy's submarines and aircraft carriers, including 52 attack submarines, 14 ballistic
missile submarines, 4 guided missile submarines, and 11 aircraft carriers. These ships are relied
on every day, all over the world, to protect our national interests. Starting in FY 2010, there are
major new missions for the NNSA Naval Reactors program. A significant funding increase is
requested for the OHIO Class submarine replacement and for the related activity which will
demonstrate new submarine reactor plant technologies as part of the refueling of the land-based
prototype reactor. R&D is underway now, and funding during this Future Years Nuclear
Security Program is critical to support the long manufacturing spans for procurement of reactor
plant components in 2017, and ship procurement in 2019. Resources are also included in
FY 2011 to support commencement of design work for the recapitalization of used nuclear fuel
The Office of the Administrator appropriation provides for federal program direction and support
for NNSA's Headquarters and field installations. The FY 2011 request is $448.3 million, a 6.5
percent increase over the FY 2010 appropriation. This provides for well-managed, inclusive,
responsive, and accountable organization through the strategic management of human capital,
enhanced cost-effective utilization of information technology, and integration of budget and
performance through transparent financial management practices.
Management: Transforming the Culture of the Department with a Results-Oriented
To transform the way Americans use and produce energy, we need to transform the Department
of Energy. Because the mission of the Department is vital and urgent, it must be pursued using a
results-oriented approach that is safe, fiscally responsible, and legally and ethically sound. The
Department has developed strong management and oversight capabilities during implementation
of the Recovery Act, and these lessons will be applied to the FY 2011 budget. The budget
request of $337 million for corporate management includes $75 million for the Office of
Management, $102 million for the Office of the Chief Information Officer, $43 million for the
Inspector General's office, $62.7 million for the Office of the Chief Financial Officer, $37
million for the Office of General Counsel, and $2 million for Management Reform within the
Office of the Secretary. The Management Reform effort will provide the Department with
strategic direction, coordination, and oversight of management initiatives. The primary mission
of this new office is to identify operational efficiencies to free up resources for priority mission
activities. The Department is also requesting $12 million for a new Acquisition Workforce
Improvement initiative which will be utilized to increase the size and improve the training of our
acquisition professionals.
The Department's human capital management efforts are focused on an integrated approach that
ensures human capital programs and policies are linked to the Department's missions, strategies,
and strategic goals, while providing for continuous improvement in efficiency and effectiveness.
To accomplish this goal, the Department will develop different strategies to attract, motivate and
retain a highly skilled and diverse workforce to meet the future needs of the Nation in such vital
areas as scientific discovery and innovation.
To improve stewardship of taxpayer dollars, the Department will continue to issue audited
financial statements in an accelerated timeframe and provide assurance that the Department's
financial management meets the highest standards of integrity. The Department's FY 2009
financial statements were reviewed by independent auditors and received an unqualified opinion.
This was made possible by implementing an aggressive plan to mitigate and remediate a number
of financial management challenges that were identified by the Department and its independent
auditors. In addition, the Department continues to strengthen the execution of program funding
dollars by having regular execution reviews that will ensure funding is processed, approved and
spent quickly and responsibly. The Department in FY 2011 will continue its effort to build and
improve its integrated business management system.
The Department is continuing to make progress in improving project management and is
implementing an action plan with scheduled milestones and aggressive performance metrics.
The focus of the action plan is to successfully address the root causes of the major challenges to
planning and managing Department projects. The action plan identifies eight measures that,
when completed, will result in significant, measurable, and sustainable improvements in the
Department's contract and project management performance and culture.
To improve financial performance in project management, the Department has increased the use
of Earned Value Management (EVM) techniques within program offices. These techniques
objectively track physical accomplishment of work and provide early warning of performance
problems. A certification process was instituted for contractors' EVM systems to improve the
definition of project scope, communicate objective progress to stakeholders and keep project
teams focused on achieving progress. Currently, 70 percent of the Department's capital asset
projects have certified EVM systems.
The Department continues to strengthen information technology management by consistent
execution of robust IT Capital Planning and Investment Control oversight and reporting
processes designed to ensure successful investment performance, including the use of EVM
Systems as appropriate, and the remediation of poorly performing investments. Through the
establishment and use of an Enterprise Architecture that aligns to the Federal Enterprise
Architecture, the Department has ensured that all IT investments follow a comprehensive
Modernization Roadmap.
The Department continues to take significant actions to improve its cyber security posture by
implementing its Cyber Security Revitalization Plan to address long-standing, systemic
weaknesses in the Department's information and information systems. Specifically, the
Department seeks to ensure that 100 percent of operational information technology systems are
certified and accredited as secure and that the Department's Inspector General has rated the
certification and accreditation process as "satisfactory." Additional steps will be taken to ensure
that electronic classified and personally identifiable information are secure.

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