expenditures for each year, and the remaining unexpended balances are shown in the following table:

There follows a brief description of each of the programs set forth in the summary on page 2.

1. Raw materials program.-Operating costs for the raw materials program are estimated at $562.6 million in fiscal year 1962, compared with estimated fiscal year 1961 costs of $636 million and actual fiscal year 1960 costs of $715.9 million. The raw materials program includes the procurement of uranium concentrates and ores from foreign and domestic sources and related costs for resource evaluation. The decrease in quantities of uranium concentrates to be procured in fiscal year 1962 results primarily from the deferral of Canadian deliveries until after fiscal year 1962.

The

2. Special nuclear materials program.-Operating costs for the special nuclear materials program are estimated at $557.5 million in fiscal year 1962, compared with estimated fiscal year 1961 costs of $567.3 million and actual fiscal year 1960 costs of $553.3 million. The production of special nuclear materials begins with the refinement of uranium concentrates for diffusion plants or reactors. isotope uranium 235 is extracted in gaseous diffusion plants at Oak Ridge, Tenn., Paducah, Ky., and Portsmouth, Ohio. Plutonium is synthesized in the reactors at Hanford Wash., and Savannah River, S.C. Improvements in processes for each manufacturing step are aimed at decreases in unit costs, increase in yield, and improvements in the quality of products.

3. Weapons program.-Operating costs for the weapons program are estimated at $561.2 million in fiscal year 1962 compared with estimated fiscal year 1961 costs of $520 million and actual fiscal year 1960 costs of $499.6 million. The weapons program includes the production of atomic weapons, the maintenance of stockpiled weapons in a state of constant readiness, the development and design of new weapon types, and participation with the Department of Defense in experimental programs for improving the techniques of detecting nuclear detonations at high altitude and underground.

4. Reactor development program.-Operating costs for the reactor development program are estimated at $432.8 million in fiscal year 1962 compared with estimated fiscal year 1961 costs of $436.7 million and actual fiscal year 1960 costs of $387.4 million. Emphasis will continue to be placed on advancing power reactor technology in order to achieve large-scale generation of economic electrical energy from atomic reactors. Cooperative endeavors between the Commission and industrial groups, as well as with the European Atomic Energy Community (Euratom) and Canada, will be continued.

The estimates provide for general reactor systems research and development applicable to many reactor designs, fuel cycle development, a program of reactor safety, development of separations systems for processing irradiated fuel elements, development of systems for disposal of radioactive wastes and a program on high temperature materials research and high performance reactors research.

Work will also be continued on reactors to propel merchant vessels, on reactors to meet military needs for power in remote areas, on reactors to propel naval vessels, rockets, and missiles, and on reactors and radioisotopes to provide electric power and heat for satellites. This research also provides information useful in the development of civilian power reactors.

Operation of test facilities and experimental reactors will be continued at the National Reactor Testing Station, Idaho.

5. Physical research program.-Operating costs for physical research are estimated at $177.8 million in fiscal year 1962 compared with estimated fiscal year 1961 costs of $163.7 million and actual fiscal year 1960 costs of $135.3 million. The physical research program consists of theoretical and experimental investigations required to support the Commission's immediate and long-range objectives for utilizing nuclear energy. Advances achieved in the past can be traced back to similar laboratory investigations. In the atomic energy program, research plays a relatively more important role than in other industrial operations of comparable size. The phenomena dealt with are close to the fringes of scientific knowledge. Unusual materials are employed and their nuclear, as well as their chemical and physical properties, must be determined. The temperatures and radiation densities at which these materials are used are outside the range of previous experience in industrial technology.

Research will be continued on the controlled thermonuclear project to eventually achieve production of power through the fusion process.

Research is carried on by Commission laboratories, universities, and other independent institutions.

6. Biology and medicine program.—Operating costs for research in biology and medicine are estimated at $61.1 million for fiscal year 1962, compared with estimated costs of $54.4 million in fiscal year 1961 and actual cost of $47.6 million in fiscal year 1960. Primary emphasis will continue to be placed on the protection of the health and safety of atomic energy plant workers and the general populace from the hazards of atomic energy operations. Research on radioactive fallout problems and related research in the biological hazards of radiation will continue to be expanded. Additional emphasis will be placed on research efforts of pertinence in the rapidly growing field of industrial uses of atomic energy. Close liaison will continue to be maintained with the Office of Civil and Defense Mobilization as well as with other agencies performing functions interrelated with Commission biomedical interests. Research is carried on by Commission laboratories, universities, and other independent institutions.

7. Training, education, and information program.-Operating costs for the training, education, and information program are estimated at $14.2 million in fiscal year 1962 compared to estimated fiscal year 1961 cost of $14.5 million and actual fiscal year 1960 costs of $11.8 million. Primary program emphasis will continue to be placed on broadening the base of nuclear technology at home and abroad. Program efforts are directed toward provision of assistance to colleges and universities in establishing nuclear curriculums; provision of assistance to States for training in radiation control; operation, through contract, of schools and the conduct of specialized courses; offering of graduate fellowships in the nuclear energy field; presentation of international conferences, studies, and exhibits; and development and dissemination of technical information. The radioisotope training activities formerly budgeted under the isotopes development program are now being budgeted under this program.

8. Civilian applications of isotopes and nuclear explosives.-Operating costs for this program are estimated at $12 million in fiscal year 1962 compared to estimated fiscal year 1961 costs of $10.8 million and actual fiscal year 1960 costs of $10.4 million.

The program for civilian applications of isotopes consists of research and development activities required to accelerate realization of the potentially vast nonpower uses of atomic energy. The program will provide for expanding the technology and utilization of isotopes with particular attention to civilian applications; encouraging private production of isotopes; developing, through research and development activities, application of high level or massive radiation; and developing, through research and development activities, methods and technology for preservation of foods by irradiation.

The civilian applications of nuclear explosives program (Plowshare) encompasses the development of peaceful uses of nuclear explosives. The program provides for development of special instrumentation and feasibility studies regarding new applications and devices; experimental effort directed toward power

and isotope production; and initiation of an experiment to obtain information on the use of nuclear explosives for excavations.

9. Community.-The Commission will continue to operate under contract the community of Los Alamos, N. Mex., and will provide assistance payments for Oak Ridge, Tenn., and Richland, Wash. All houses have been disposed of at Oak Ridge and Hanford and remaining building lots, apartments, and commercial properties are expected to be disposed of during fiscal year 1962. The operation of employee housing at Sandia, N. Mex., has been discontinued. Operating costs of the program are estimated at $8.6 million in fiscal year 1962 compared to estimated fiscal year 1961 costs of $9.5 million and fiscal year 1960 costs of $14.2 million.

10. Program direction and administration.-Under the general heading of program direction and administration are grouped together the salary costs and other expenses of Commission personnel engaged in general management, executive direction, and technical supervision of program operations; the negotiation and administration of contracts; and other related administrative activities. The corresponding costs for Commission personnel engaged in nonadministrative activities directly related to a specific program are included in that program, as for example, personnel safeguarding classified shipments or providing fire protection for a community. Expenses of personnel of other Government agencies, including their travel, doing work for the Commission are treated as contractual services, and are therefore not included in the AEC detail of personnel services and travel.

Estimated costs of $58 million will be incurred in fiscal year 1962 for program direction and administration compared with estimated fiscal year 1961 costs of $57.8 million and actual fiscal year 1960 costs of $50.6 million. No increase in staff is budgeted for fiscal year 1962 under this program. The increase of $0.2 million is required principally for salaries, travel, and other costs associated with the higher average employment, resulting from having on the rolls for all of fiscal year 1962 employees who will be hired during fiscal year 1961. The costs in fiscal year 1962 represent 2.4 percent of the total operating costs, compared with an estimated 2.3 percent in fiscal year 1961, and 2.1 percent in fiscal year 1960.

11. Security investigations.-Cost of security investigations in fiscal year 1962 are estimated at $6.5 million compared with estimated fiscal year 1961 costs of $6.9 million and actual fiscal year 1960 costs of $7.1 million. Under provisions of the Atomic Energy Act of 1954, persons to be employed on work involving access to restricted data are required to be cleared for security purposes based on investigations by the Civil Service Commission or the Federal Bureau of Investigation.

12. Cost of work for others.-This program includes costs incurred by the Commission in furnishing materials and services to industrial organizations and other private parties apart from those which it provides normally for its own basic program. The costs are incurred only upon the request of others. Charges are made for these materials and services and the revenues derived are included under "Revenues applied." Cost of work for others is estimated to be $4.8 million in fiscal year 1962, compared with $7.5 million in fiscal year 1961 and $6.4 million in fiscal year 1960. The lower estimate in fiscal year 1962 is due principally to an estimated decrease in sales of special reactor materials. 13. Increase or decrease in selected resources.-This program includes inventory stocks held by AEC and its contractors, collateral funds, and goods and services on order under contract. The appropriation requirements for these items are based on the changes in balances from the previous fiscal year. Selected resources at the end of fiscal year 1962 are estimated at $945.2 million as compared with $948.3 million in fiscal year 1961 and $891.3 million in fiscal year 1960. The net decrease of $3.1 million in fiscal year 1962 results principally from a decrease in the balances for the cooperative arrangements program; partially offset by (1) increases in inventory balances for special reactor materials and isotopes based on projected program requirements, (2) increases in goods and services on order related to an expanded level of production in the weapons program, and (3) increases in balances related to procurement of Canadian uranium concentrates, delivery of which is deferred until future years.

14. Revenues applied. This program includes income from sale and lease of products and from services rendered, revenues from communities, and other miscellaneous income items. These revenues are applied against Atomic Energy

Commission appropriation requirements. Revenues are estimated at $27.7 million for fiscal year 1962, compared to an estimate of $32 million for fiscal year 1961. The lower estimate in fiscal year 1962 is due principally to an estimated decrease in sales of various products. Revenues for fiscal year 1960 were $30.4 million.

JUSTIFICATION FOR PROPOSED LANGUAGE CHANGES-ÓPERATING EXPENSES

Proposed changes in language are indicated as follows: language enclosed in black brackets indicates proposed deletions, and underscoring indicates proposed insertion of new language.

1. "[rental in or near the District of Columbia ;]"

Rental authority in appropriation language of various agencies is being deleted in fiscal year 1962 since language has been proposed under appropriations to the General Services Administration to authorize that agency to make all necessary rentals in the District of Columbia as may be requested with costs to be reimbursed by the requesting agency.

2. "[not to exceed $3,650,000 for expenses of travel;]"

"not to exceed $53,400,000 for personal services

To eliminate the limitations previously included in the appropriation act. This action would be consistent with the recommendations of the Hoover Commission.

3. "purchase (not to exceed [four hundred and sixty] four hundred and fiftytwo, of which [four hundred and thirty-seven] three hundred and fourteen are for replacement only [, including two at not to exceed $4,000 each]) and hire of passenger motor vehicles"

This change provides for authorization of the procurement in fiscal year 1962 of 452 passenger motor vehicles of which 314 are required for replacement of older vehicles and 138 would be additions to the fleet.

All vehicles to be replaced will meet or exceed the GSA replacement standards. The additional vehicles requested include 128 automobiles, 2 station wagons and 8 buses. Major requirements are 100 automobiles for the Nevada test site to offset a like number of commercial rentals in view of the continuing program at this location and 21 automobiles for the Atomic Bomb Casualty Commission to be substituted for 4-wheel drive truck type vehicles used for passenger and patient transportation.

Contractors are assigned passenger motor vehicles as Government-furnished equipment and operate them in carrying out the Commission's program. With the net addition of 138, the passenger vehicle fleet will number 2,133 at the end of fiscal year 1962.

4. "[$2,451,210,000, which, together with the unexpended balances, as of June 30, 1960, of prior year appropriations made available under this head to the Atomic Energy Commission] $2,359,400,000"

To reflect the fiscal year 1962 appropriation amount.

5. "[shall] to remain available until expended"

To reflect language consistently used on appropriations available until expended.

6. "Provided further, That not to exceed $7,000,000 of this appropriation may be transferred to the appropriation for 'Plant Acquisition and Construction', if the Commission determines such transfer is necessary to carry out the purpose of such cooperative power reactor demonstration program as may be authorized under the Commission's authorization Act for the fiscal year 1962"

The fiscal year 1962 authorization bill, as proposed by the Commission, would authorize additional appropriations amounting to $7 million for the cooperative power reactor demonstration program. Appropriation of these funds is being requested in this appropriation. The above proviso would permit transfer of these funds to the "Plant acquisition and construction" appropriation if the Commission determines such transfer to be necessary to carry out the purposes of the authorized program.

JUSTIFICATION FOR PROPOSED LANGUAGE CHANGES-GENERAL PROVISIONS

The proposed change in the language for the administrative provisions is described below. Language enclosed in black brackets [] indicates proposed deletions; language in italic indicates proposed insertions.

1. "Any appropriation available under this or any other Act to the Atomic Energy Commission may initially be used subject to limitations in this Act during the fiscal year [1961] 1962 to finance the procurement of materials, services, or other costs which are a part of work or activities for which funds have been provided in any other appropriation available to the Commission: * * *" This change makes the provision applicable to fiscal year 1962.

GENERAL STATEMENT FOR PLANT ACQUISITION AND CONSTRUCTION

Summary of requirements for fiscal year 1962

The budget estimates for the appropriation "Plant acquisition and construction" for the fiscal year 1962 provide for total obligations of $375,294,000 of which funds in the amount of $106,544,000 are presently available from prior year appropriations, requiring a new appropriation of $268,750,000.

Of the total amount of funds presently available, $94,844,000 is required for prior year projects which were not fully contracted for in fiscal year 1961. The remainder of the funds presently available, $11,700,000 is a net unobligated balance resulting from the elimination, or deferment beyond fiscal year 1962, of projects or changes in the total estimated cost of projects for which funds were previously appropriated.

The prior year projects which have not been fully contracted and for which $94,844,000 of funds presently available are carried forward for obligation in fiscal year 1962 are identified in section B under each program throughout this document. The newly authorized projects and the residual funding of previously authorized projects requiring obligation of $280,450,000 in fiscal year 1962, which are to be funded by the new appropriation of $268,750,000 and the $11,700,000 of funds presently available, are identified in section A under each program throughout this document.

A summarization of the fiscal year 1962 obligations by program, showing the application of funds presently available and the derivation of the new appropriation requirement is shown on the following page.

Summary of obigations for fiscal year 1962 by program

Three-year summary of obligations and financing of obligations

The following tables summarize the total obligations incurred for each of the AEC's major construction programs for fiscal year 1960, fiscal year 1961, and fiscal year 1962, and the sources of funding these obligations: