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US Department of Energy FY2014 Proposed Budget

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A presentation by Deputy Secretary of Energy Daniel Poneman on the proposed US Department of Energy Budget for FY2014.

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US Department of Energy FY2014 Proposed Budget

  1. 1. Department of EnergyFY 2014 Budget Request Overview April 10, 2013
  2. 2. “Now is the time to reach a level of research and development not seen since the height of the Space Race. And today, no area holds more promise than our investments in American energy. After years of talking about it, we are finally poised to control our own energy future.” - President Obama, 2013 State of the Union2
  3. 3. The Department of Energy $28.4 Billion FY 2014 Budget Request Funds Presidential Priorities ScienceDiscretionary $5.2$ in Billions 1.4 Major 1.3 FY14 Budget 1.2 Increases Environmental Applied 1 Applied Energy Cleanup Energy $4.7 $5.8 0.8 Nuclear Security .6 0.6 Science Other $1.0 0.4 .2 0.2 Nuclear 0 Security $11.73
  4. 4. All-of-the-above Energy Strategy Cut oil consumption Cut oil by more than imports in half 2 million by 2020 barrels a day by 2025 Double Double renewable energy energy productivity production by by 2030 20204
  5. 5. Innovating for Energy Security and National Security Provide Develop Enhance Invest in Modernize strategic and advanced cyber modernizing the nuclear economic reactor security in the security security designs and the energy electricity enterprise against fuel cycle sector grid disruptions technologies in U.S. oil supplies5
  6. 6. FY 2014 Budget Request: Applied Energy6
  7. 7. Addressing Energy Challenges • DOE’s FY 2014 Budget: Implementing the President’s all-of-the-above energy approach • Invests in technologies that will grow the economy, stimulate clean energy job creation, improve air and water quality, and reduce greenhouse emissions • Provides assistance to American entrepreneurs to commercialize the technologies that will lead to a new, clean energy economy • Funds innovative projects to produce renewable energy and improve integration of renewable energy into the electric grid7
  8. 8. Energy Efficiency and Renewable Energy - $2.8 billion Renewable Sustainable Energy Savings Electricity Transportation • Advanced Generation • Vehicles Manufacturing • EV-Everywhere Grand • Building Technologies • Solar Challenge • Weatherization • Wind • Combustion Engine • Federal Energy • Water R&D Management Program • Geothermal • Alternative Fuel Vehicle Community Partner Projects • Bioenergy • Fuel Cells8
  9. 9. 9
  10. 10. Fossil Energy - $638 million Clean Coal R&D Oil & Gas R&D Petroleum Reserves •Develop cost-competitive •Develop unconventional oil •Provide “Emergency carbon capture and and gas resources Stockpile” of crude oil to storage (CCS) technology (i.e., shale gas and respond to potential •Demonstrate commercial- hydrates) in an disruptions in U.S. scale CCS projects environmentally petroleum supplies •Improve efficiency of coal- sustainable and safe •Maintain one million barrel based power systems; manner Northeast Home Heating enable affordable CO2 Oil Reserve at full capture, increase plant readiness availability, and maintain the highest environmental standards10
  11. 11. Electricity Delivery and Energy Reliability - $169 million Infrastructure Security Cybersecurity Clean Energy and Energy Restoration • Supports Cybersecurity for Transmission and • Stands up the Energy Resilience Energy Delivery Systems Reliability and Operations Center (E-ROC) • Improve cybersecurity • Leverages the availability of data • Places DOE Energy Advisors in technologies and capabilities on the electric system to enhance Federal Emergency Management through research and transmission reliability and Agency (FEMA) regional offices development integration of renewable energy • Improve efficiency of coal-based • Enhances situational awareness into the grid power systems; enable affordable • Further develops operational • Expands the Energy Systems CO2 capture, increase plant capabilities that strengthens Predictive Capability to develop availability, and maintain the cybersecurity protections near real-time analysis of events highest environmental standards • Increases the resiliency of the that could impact energy reliability Energy Sector 11
  12. 12. Nuclear Energy - $735 million Small Modular Strategy for the Changes within Reactors Management and Radiological Facilities • NE made one selection (Nov Disposal of used Management 2012) and issued a second Nuclear Fuel and High • Space and Defense FOA (March 2013) Level Radioactive Infrastructure moves to full • The SMR program will provide Waste cost recovery (-$65M) $452M over 6 years • Proposes financing reform • Provides $60 million for activities to lay the groundwork for design of an integrated waste management system and related research and development activities.12
  13. 13. ARPA-E: Changing What’s Possible • The ARPA-E request is $379 million, an increase of $104 million or 38% over the FY 2012 current level • Invests to enable transformative breakthrough discoveries that have the potential to be brought to market scale in a wide array of energy technologies including energy storage, building technologies, energy deliver and grid modernization, transportation, carbon capture, and renewable energy technologies • Funding for Transportation Systems seeks to create a diverse portfolio of technological options to reduce oil dependence and increase efficient use of domestic energy sources for transportation • The request for Stationary Power Systems will develop advanced and efficient power generation through new sources and new production and delivery hardware17 projects have attracted over $450 million in private sector follow-onfunding after ARPA-E’s initial investment of approximately $70million, spurred start-up company formation and fostered public partnerships13
  14. 14. Enhancing American Manufacturing “Our first priority is making America a• DOE’s Clean Energy magnet for new jobs and Manufacturing Initiative manufacturing.” • Improve U.S. competitiveness - President Obama, State in clean energy manufacturing of the Union, 2013 • Strengthen U.S. competitiveness through increased energy productivity• Clean Energy Manufacturing Innovation InstituteSince 2005, DOE has invested in the wind energy sector. Between 2005 and2011, the U.S. wind market grew from approximately $2 billion to $9 billion, while thevalue of wind equipment installed in U.S. wind farms that was manufactured in theU.S. doubled from roughly 35% to 70%. 14
  15. 15. Race to the Top • $200 million in one-time funding for a new Race to the Top for energy efficiency and grid modernization • Supports the President’s goal of doubling energy productivity above 2010 levels by 2030 • Challenges States, local governments with public power, co-operatives, and tribes to implement effective policies to cut energy waste and modernize the grid15
  16. 16. Energy Innovation Hubs $135 million to support 5 existing Hubs and 1 new Hub in “Electricity Systems”Electricity Systems Hub: The Administration has requested $20 million to establish this hub toaddress fundamental science, technology, economic and policy issues that affect our ability toachieve a seamless and modernized gridFuels from Sunlight: Using the photosynthesis process to create energy directly fromsunlight, and create a process thats economically viableModeling & Simulation for Nuclear Reactors: Developing a “virtual model" will address importantquestions about the operations of and safety basis for reactor(s)Energy Efficient Buildings: Developing advanced building modeling tools and building one of thecountry’s first 3-D building design labsCritical Materials: Addressing challenges across the entire life of each critical material includingmineral processing, manufacture, substitution, efficient use, and end-of-life recyclingAdvanced Battery and Energy Storage: Advancing more effective, lower cost and longer lifeenergy storage technologies for electric and hybrid cars and the electricity grid
  17. 17. FY 2014 Budget Request: Office of Science17
  18. 18. Investing in Science and Innovation to Keep America Competitive • DOE’s Office of Science forms a crucial mainstay in U.S. leadership in science and a foundation of American innovation and prosperity • Supporting research that led to over 100 Nobel Prizes during the past 6 decades—more than 20 in the past 10 years • Supporting 25,000 Ph.D. scientists, graduate students, undergraduates, engineers, and support staff at more than 300 institutions “We don’t stand still, we look • Providing 45% of Federal support of basicforward. We invent. We build. We research in the physical and energy related turn new ideas into new industries. sciences and key components of the Nation’s basicWe change the way we can live our research in biology and computing lives here at home and around the world.” -President Obama, March 2013 18 18
  19. 19. Delivering Scientific Discovery and User Facilities to Advance American Competitiveness • The Office of Science request is $5.152 billion • Continues support for the Energy Frontier Research Centers which have proved enormously productive, generating 60 invention disclosures and 200 patents • Continues efforts to maintain America’s lead and take maximum scientific advantage of computing capabilities19
  20. 20. FY 2014 Budget Request: Nuclear Safety and Security20
  21. 21. NNSA FY 2014 Budget Request = $11.7 Billion Legacy Contractor Pensions Driving an Integrated 3.2% and Effective Enterprise 4.7% Advancing Naval Nuclear Propulsion Reducing Nuclear 10.7% Dangers 17.6% Modernizing the Infrastructure 22.5% Managing the Nuclear Weapons Stockpile 22.5% Security 5.8% Strengthening the Science, Technology & Engineering Base 13.0%21
  22. 22. Modernizing the Nuclear Security Enterprise • The Weapons Activities request is $7.9 billion, an increase of $311 million or about 9.1% • Provides a strong basis for transitioning to a smaller nuclear stockpile that continues to be safe, secure, and effective • Continues key stockpile initiatives including the W76 LEP, B61 LEP, W78/88-1 life extension study and the W88 ALT 370 • Supports the science, technology, and engineering base and modernizes key facilities to strengthen national security • Reduces reliance on nuclear weapons and sustains confidence in the ability to certify the reliability without the use of underground nuclear testing • Achieves savings through a synergy among science, engineering and technology development and life extension programs, and through management efficiencies22
  23. 23. Preventing Proliferation of Nuclear Material and Weapons• The Defense Nuclear Nonproliferation request is $2.1 billion, which will allow NNSA to continue to implement the President’s nuclear security agenda• Secures or eliminates proliferation-sensitive materials• Limits or prevents the spread of materials, technology, and expertise related to nuclear and radiological weapons and programs around the world• Completes efforts to secure the most vulnerable nuclear materials by December 2013• Supports implementation of the New START Treaty• Provides funding to respond to nuclear or radiological incidents worldwide and advance nuclear counterterrorism and counter-proliferation goalsAs of the end of FY 2012, NNSA’s International Material Protection and Cooperation program had secured218 buildings containing weapons-usable nuclear material and NNSA’s Global Threat Reduction Initiative hadremoved 3,462 kgs of vulnerable nuclear material to reduce the threat of nuclear terrorism.23
  24. 24. Powering the Nuclear Navy • The Naval Reactors request is $1.2 billion, an increase of $166 million or 15% above the FY 2012 current level • Funds the core objective of ensuring the safe and reliable operation of the Nation’s nuclear fleet • Continues reactor systems development for the replacement of the OHIO-class ballistic missile submarines, the Land-based Prototype Refueling Overhaul, and the recapitalization of NR’s used fuel handling infrastructure.24
  25. 25. Advancing Responsible Environmental Cleanup • The Environmental Management request is $5.6 billion • Enables EM to maintain a safe and secure posture in the EM complex. • Positions EM to meet its FY 2014 enforceable agreement milestones. • Funds continued construction of two unique and complex radioactive tank waste processing plants. • Supports disposal of transuranic and low level wastes generated by EM cleanup activities. • Continues progress toward the goal of reducing EM’s geographic footprint 90% by 2015. In FY 2012, EM packaged a record high of 275 canisters of high level waste at the Defense Waste Processing Facility and successfully closed two waste tanks – the first since 1997 – at the Savannah River Site.25
  26. 26. EM’s FY 2014 Budget Request: Funding by Mission Area Special Nuclear Materials and Soil and Radioactive Tank Waste Used Nuclear Fuel** Groundwater $ 1,933M / 34% WA $2.3B $ 906M / 16% $ 492M / 9% ID NY $377M $90M CA $11M NV OH $65M UT $188M $36M KY EM’s FY 2014 Budget Request - $5.622$332M Total Billion NM TN $427M SC $1.3B $444M*Includes Program Direction, Program Support, TDD, Post Facility D&D Transuranic & Solid Essential SiteClosure Administration and Community and Regulatory Waste Services*Support $ 1,095M / 19% $ 804M / 14% $ 392M / 7%**Includes Safeguards and Security 26
  27. 27. Department of Energy’s FY 2014 Budget Request Invests $28.4 Billion in America’s Energy Future The $1.75 billion net funding increase over FY 2012 improves the United State’s ability to: • Compete as a world leader in clean energy and advanced manufacturing • Create high-quality jobs • Enhance our energy security • Continue cutting-edge basic scientific R&D • Respond to the threat of climate change • Modernize the nuclear weapons stockpile and infrastructure27
  28. 28. FY 2014 Budget Request: Backup Slides28
  29. 29. FY 2014 Budget Request – Applied Energy Programs (discretionary FY 2013 FY 2012 vs. FY 2014 FY 2012 FY 2014 dollars in Annualized Current Request % thousands) CR $ Change Change EERE 1,780,548 1,820,713 2,775,700 +995,152 +55.9% OE 136,178 139,954 169,015 +32,837 +24.1% FE 554,806 714,033 637,975 +83,169 +15.0% NE 853,816 863,996 735,460 -118,356 -13.9% ARPA-E 275,000 276,683 379,000 +104,000 +37.8% Applied Energy 3,600,348 3,815,379 4,697,150 +1,096,802 +30.5% Programs Total* *Total Includes $200 million in one-time FY 2014 Request funding for a new Race to the Top for energy efficiency and grid modernization29
  30. 30. FY 2014 Budget Request – Office of Science (discretionary FY 2013 FY 2012 vs. FY 2014 FY 2012 FY 2014 dollars in Annualized Current Request % thousands) CR $ Change Change Science 4,934,980 4,903,461 5,152,752 +217,772 +4.4%30
  31. 31. FY 2014 Budget Request – NNSA and EM FY 2012 vs. FY 2014 (discretionary FY 2013 FY 2012 FY 2014 dollars in Annualized Current Request % thousands) CR $ Change Change Weapons Activities* 7,214,834 7,557,342 7,868,409 311,067 +9.1% Defense Nuclear 2,300,950 2,409,930 2,140,142 -160,808 -7.0% Nonproliferation Naval Reactors 1,080,000 1,086,610 1,246,134 +166,134 +15.4% Office of the 410,000 412,509 397,784 -12,216 -3.0% Administrator NNSA Total 11,005,784 11,466,391 11,652,469 +304,177 +5.9% Environmental 5,710,408 5,745,384 5,621,688 -88,720 -1.6% Management *For Weapons Activities, the FY 2014 Request is compared against the FY 2013 Annualized Continuing Resolution level.31