Consistency with the PCAST Recommendations Q16. A16. On page 13 of your testimony, you state that "Our FY 1999 budget request is broadly consistent with the PCAST recommendations, both in overall resources and R&D priorities." What the inconsistencies between your FY 1999 budget request and the PCAST recommendations? The thrust of the FY 1999 budget request for energy efficiency and renewable energy technologies is consistent with the PCAT recommendations. That is, the request reflects increased funding in those areas recommended by the panel. The major inconsistency is that the funding levels in the request are lower than those in the PCAST report-due to the Administration's goal of presenting a responsible budget in a fiscally constrained environment. However, within that environment, the Department has increased the funding request for programs and technologies that the PCAT regards as most critical. DOE R&D Council Q17. On page 13 of your testimony, you also discuss the DOE R&D Council and state that "The Council, which I now chair, has a new charter, to more fully integrate and manage the Department's R&D both within and across program areas." Q17.1 What is the R&D Council's new charter and how does it differ from the previous charter? A17.1 The charter for the DOE R&D Council is attached [NOTE: DOE would not provide this charter in spite of repeated requests.] It differs in two important ways from the previous charter. First, the Council is much more focused on the leadership of the department. The chairmanship has been elevated to the Under Secretary, and the active involvement of program secretarial officers (PSOs) with substantial R&D budgets is now the norm. The second important difference is the establishment of three working groups. The These two changes allow the R&D Council, and the Department, to do a much better job of integrating R&D efforts across program areas. The Council will provide a systematic basis for improving the linkage between basic and applied research, evaluating the alignment of R&D programs with department and national missions in the preparation of budgets, and advising and framing issues for the Secretary and Deputy Secretary. Q17.2 Please provide a list of the members of the DOE R&D Council, a listing of the DOE A17.2 Membership. The members of the R&D Council are the following Program Secretarial Competing the M&O Contract for the National Renewable Energy Laboratory Q18. On page 14 of your testimony, you note that DOE is in the process of competing the M&O contract for the National Renewable Energy Laboratory in Colorado. A18. What is schedule for competing and awarding the M&O Contract for the National Renewable A competitive procurement was recently completed. Midwest Research Institute was selected as the contractor and award of the successor Performance-Based Management Contract occurred on November 9, 1998. Updating the Way DOE Selects R&D Performers Q19. On page 14 of your testimony, you state that “We will be intensifying our evaluation of how we award grants and contracts, including technology transfer and partnership agreements, to ensure they are made on the basis of sound scientific review and economic judgment. We need to constantly evaluate the appropriateness of these agreements on a case-by-case basis and make policy and process adjustments when necessary." Please describe the process(es) you will be using to intensify your evaluation of how you award grants and contracts, including technology transfer and partnership agreements, and how this differs from your current process(es). A19. The Under Secretary, under the auspices of the R&D Council, is undertaking a review of the procedures used by each program to award grants and contracts. This review will, in particular, consider the important role of peer review, and the adequacy of competition in the making of awards. The review will be used to identify any weaknesses or inconsistencies in the procedures used by each of the programs. The Under Secretary will work with the management of each The Under Secretary, again under the auspices of the R&D Council, has initiated a review of DOE's policies on and implementation of partnerships. This review will also include the active participation of the Laboratory Directors. Science and Technology “Roadmaps” Q20. On pages 14 and 15 of your testimony, you discuss science and technology “roadmaps”. A20. Please describe the process(es) you will using to develop these science and technology "roadmaps". Technology roadmaps address specific scientific and technical problems by defining goals, engaging in a consensus building process with R&D performers and stakeholders, and developing R&D plans most likely to achieve success. They will be used to establish clear linkages between DOE missions, the programs designed to accomplish those missions, the technologies and knowledge required to make those programs successful, and the specific R&D programs or tasks required to produce those technologies. The roadmaps will be developed along and across the Department's business lines under the guidance of the R&D Council and its Working Groups. Technology roadmaps will serve as a primary tool with which to "strategically manage" the crosscutting R&D needs and capabilities of the Department. There are three types of roadmaps that will support the program development and resource allocation process: R&D Program Plans, Strategic Mission Roadmaps, and Enabling Technology Roadmaps. An R&D Program Plan is a "roadmap" that will be prepared annually by each program. These plans will articulate a set of goals and objectives that support the larger missions and goals of the Department, as agreed to by the Under Secretary and the R&D Council. Each R&D Program Plan will show the connection between -- provide a roadmap for the program area's mission, the programs established to accomplish that mission, the science and technology barriers to accomplishing the programs, and the R&D projects and tasks required to overcome those barriers. Each will also identify the key performers among the national laboratories, academia, and industry. Each R&D Program Plan will show how the program area intends to contribute to and benefit from Strategic Mission Roadmaps and Enabling Technology Roadmaps. A Strategic Mission Roadmap is prepared annually for each of the critical R&D missions that comprise DOE's highest level corporate commitments. Two examples are Clean Power and Genomics. The accomplishment of these missions represent important goals for the Department and the country. The end result is thus important in its own right, not simply as a tool for accomplishing other R&D objectives. Enabling Technology Roadmaps provide integrated plans for the development of technologies that are necessary for the accomplishment of some larger DOE mission-they "enable" the accomplishment of some larger goal(s). Examples include robotics, strategic simulation, materials, and major science facilities. Enabling technologies are often required by more than one program area. These roadmaps will describe the technical goals and milestones to be met and the areas of FY 1999 Budget Request for the Million Solar Roofs Initiative Q21. The President's tax credit proposal includes $160 million over five years for rooftop solar A21. equipment. Rooftop solar water heating systems have been around for many years and rooftop photovoltaic systems are already in the market. Given the fact that these systems are both available and will have a tax credit, why is DOE proposing what appears to be at least $10 million in the Solar Energy R&D budget for the Initiative? Why is this a wise use of scarce R&D funds? The DOE FY 99 budget request includes $6.4 million in the Photovoltaic Program for the Million Solar Roofs Initiative. While certain solar technologies are available commercially, they are not familiar products and their performance characteristics and benefits are not generally recognized. Solar panels are not a common part of equipment installed by builders of residences and commercial establishments. Available solar handbooks are not generally found in technical libraries of individuals and firms that design homes and buildings. Bankers, mortgage firms, and others involved in financing of residences have little or no experience with solar "extras" that may be part of a mortgage package. The "secondary" mortgage market of FHA, Fannie Mae, and Freddie Mac are similarly inexperienced. Most electric utilities, who would be directly involved when privately owned PV arrays deliver excess electricity back into the grid, have not established procedures for intertie equipment performance or safety, or for net billing. Despite commercial solar equipment offerings, solar building integration will not experience significant growth until solar technologies become mainstream topics for key players in the design, construction, and financing of residences and buildings and for managers of electric utilities. The Million Solar Roofs Initiative is designed to address these shortcomings. Steps are planned to fill the information and knowledge gaps of key participants. Alliances will be made with local governments and other entities who can reach and influence potential buyers and appropriate infrastructure players. Cooperative efforts with utilities will be established to facilitate interconnection of electricity producing solar equipment. These actions will build the bridges and open the doors to allow the commercial offerings, the technical advances in coming years, and available financial incentives to come into play. FY 1999 Budget Request for Fundamental Solar Photovoltaic Research Q22. The PCAST report on page 6-17, notes that “The weakest part of the DOE PV program is fundamental materials science research.... The long-term outlook for PV would be enhanced if there were broader materials basis for the technology." However, DOE's FY 1999 request for photovoltaic fundamental research is only $11 million, a 0% increase over the current level. Why is that? A22. With respect to photovoltaics R&D, we are trying to keep a balanced program of fundamental research, applied research and technology development, and pre-commercial demonstration with limited funding. In particular, we must balance our core fundamental research program with more applied research, such as our on-going thin-film R&D which is expected to lead to a new generation of cell technologies for the mid-term. Currently, we are intensively investigating the newer thin-film photovoltaic materials, such as amorphous silicon, cadmium telluride, and copper indium diselenide alloys, which will provide the next generation of high-performance lower cost Partnership, which has been responsible for achieving several world-record thin-film efficiencies as well as an advanced understanding of fundamental device mechanisms. The attractiveness of these and similar opportunities provides strong motivation to increase applied research investment where possible. Such increases are balanced by support in fundamental research provided by the Office of Energy Research for several material research projects at NREL. When funding for fundamental research and thin-film materials research are considered together, approximately 50% of PV program research funding is used for next generation materials that will replace today's crystal silicon technology. FY 1999 Budget Request for PV Manufacturing Q23. The U.S. PV market is booming and a recent Energy Daily article raised the possibility of silicon shortages if demand continued to increase. In spite of this, DOE is proposing a 49 percent increase for manufacturing R&D that appears to be a subsidy for an already prosperous business. Why is this an appropriate expenditure of taxpayers' funds? A23. We believe that no one in the photovoltaic energy supply business would describe the current environment as a PV energy market "boom." While sales of products have increased, penetration into U.S. electricity supply markets has been slow. Because the industry is embryonic, Federal R&D plays a critical role in positioning PV technology to make meaningful contributions to the energy needs of the nation. Despite recent growth, the PV industry is minuscule compared to other energy industries and has low or non-existent profit margins. There continue to be substantial barriers to greater use of PV in bulk electricity production, the most significant of which is high capital cost. Because manufacturing processes are the most significant contributor to PV cost, the PV Materials program address a critical technology weakness. Without Federal R&D support for processing technology, development would slow dramatically and a portion of the private investment likely would also be withdrawn. Furthermore, the PV Materials program provides an efficient mechanism to promote greater industry independence by fostering a more rapid cycle of scaling up production, driving down costs, achieving increased sales, making possible further increases in production volumes and still lower costs. The PV Materials program (PVMaT) has been very successful at meeting its goals. The average module manufacturing cost from 1992 to 1997 has been reduced by almost 50%. Industry repeatedly assigns highest priority to the PVMaT project, praises its many accomplishments, and provides substantial support through an average 42% cost sharing. There is no shortage of silicon per se. Comments about silicon shortages refer to single crystal silicon wafers, the traditional mainstay of electronic semiconductor integrated circuits and used in many photovoltaic panels today. Newer types of PV modules, such as thin film designs, do not rely on single crystal wafers. One of the benefits of PVMaT is that the initiative actually leads to a reduction of single crystal feedstock required to produce a megawatt of product. For example, one industry participant has increased the ratio of finished product to silicon feedstock by over 100% under PVMaT. By utilizing ultra thin wire saw technology developed under their PVMaT contract, the firm has doubled the number of wafers they can produce from a ton of silicon feedstock. Others have also reported similar reductions in feedstock utilization under their PVMaT contracts. More to the point, however, a major portion of the PV R&D effort is directed toward improving the |