1 Goals and Targets to Direct FY2010 Budget and Stimulus

2 President’s National Objectives for DOE—Energy to Secure America’s Future Quickly Implement the Economic Recovery Package: Create Millions of New Green Jobs and Lay the Foundation for the Future Restore Science Leadership: Strengthen America’s Role as the World Leader in Science and Technology Reduce GHG emissions: Drive emissions 20 Percent below 1990 levels by 2020 Enhance energy security: Save More Oil than the U.S Currently Imports from the Middle East and Venezuela Combined within 10 years Enhance Nuclear Security: Strengthen non-proliferation activities, reduce global stockpiles of nuclear weapons, and maintain safety and reliability of the US stockpile First Principle: Pursue material and cost-effective measures with a sense of urgency

3 Strategic Framework: Science and Discovery at the Core Science Discovery Innovation Lower GHG emissions Clean, Secure Energy Economic Prosperity National Security

4 The Secretary’s Overarching Criteria to Guide the Budget Secretary’s Criteria for Areas of Research and Investment Focus THRESHOLD CRITERIA: What is the benefit and does it advance DOE goals? Significant impact on economic prosperity, GHG emissions, and national security. Meaningful science—taking risks for breakthrough results Open to partnerships with other programs, industry, and/or international partners 1.Is the proposed spending likely to have transformative impacts? Create jobs Avoid GHG emissions Decrease oil imports 2.How close are we to technology innovation, demonstration, and deployment? Near term: Less than 5 years Mid-term: 5-15 years Long-term: 15+ years 3.Are we making the appropriate risk/benefit analysis? Transformational solutions are generally higher risk than incremental improvements Are we searching for solutions that will have significant (material) impact? Will (or could) the solution be cost-effective?

5 Major Priorities and Goals Priority : Science and Discovery: Invest in science to achieve transformational discoveries 1.Organize and focus on breakthrough science 2.Develop and nurture science and engineering talent 3.Coordinate DOE work across the department, across the government, and globally Priority : Change the landscape of energy demand and supply 1.Drive energy efficiency to decrease energy use in homes, industry and transportation 2.Develop and deploy clean, safe, low carbon energy supplies 3.Enhance DOE’s application areas through collaboration with its strengths in Science Priority : Economic Prosperity: Create millions of green jobs and increase competitiveness 1.Reduce energy demand 2.Deploy cost-effective low-carbon clean energy technologies at scale 3.Promote the development of an efficient, “smart” electricity transmission and distribution network 4.Enable responsible domestic production of oil and natural gas 5.Create a green workforce Priority : National Security and Legacy: Maintain nuclear deterrent and prevent proliferation 1.Strengthen non-proliferation and arms control activities 2.Ensure that the U.S. weapons stockpile remains safe, secure, and reliable without nuclear testing 3.Complete legacy environmental clean-up Priority : Climate Change: Position U.S. to lead on climate change policy, technology, and science 1.Provide science and technology inputs needed for global climate negotiations 2.Develop and deploy technology solutions domestically and globally 3.Advance climate science to better understand the human impact on the global environment

6 Priority : Science and Discovery Invest in science to achieve transformational discoveries 1.Focus on transformational science –Connect basic and applied sciences –Re-energize the national labs as centers of great science and innovation –Double the Office of Science budget –Embrace a degree of risk-taking in research –Create an effective mechanism to integrate national laboratory, university, and industry activities 2. Develop science and engineering talent –Train the next generation of scientists and engineers –Attract and retain the most talented researchers 3. Collaborate universally –Partner globally –Support the developing world –Build research networks across departments, government, nation and the globe

7 Priority : Clean Energy Develop and deploy clean, abundant, domestic energy 1. Make breakthroughs in developing clean, safe, low carbon energy supplies –Deploy demonstrated renewable energy technologies (e.g., wind, solar, geothermal) at scale and cost-effectively –Demonstrate next generation energy technologies (e.g. carbon capture and storage, cellulosic biofuels, batteries and other storage systems, enhanced geothermal, next generation nuclear) –Research and develop future energy technologies (e.g., advanced solar, methane hydrates, coal-bed methane, enhanced oil recovery) –Support advanced fission reactors and safe disposal options, fusion demonstrations 2. Develop digital network control, transmission, distribution and storage breakthroughs 3. Drive step change in achieving significant energy efficiency in the home, at work and on the road. –Encourage technology and business model innovation –Create vehicles for novel government/university and industrial collaborations and intellectual property models for development, commercialization and deployment of efficient energy-using technologies and systems –Change behavior to “waste not, want not”.

8 Priority : Economic Prosperity Create millions of green jobs and increase competitiveness 1. Reduce energy demand –Vehicles: Support improved mileage performance of internal combustion engines and develop needed batteries for vehicle electrification –Building efficiency: Weatherization, ventilation, controls, lighting 2. Deploy mature, low-carbon clean energy technologies –Support low-emission portfolios in power –Low carbon fuel standards in transport –Improve existing facilities through operations or upgrades 3. Build efficient, smart network –Smart meters/Smart grid –Advanced storage/transmission 4. Enable responsible domestic production of oil and natural gas –New pipelines –New clean sources 5. Create and educate a green workforce

9 Priority : National Security and Legacy Maintain nuclear deterrent and prevent proliferation 1. Strengthen non-proliferation activity –Secure nuclear materials –Strengthen ability to stop illicit transfers of nuclear materials –Reduce nuclear stockpiles globally –Pursue innovative S&T for control and detection 2.Ensure a safe, secure, reliable U.S. nuclear weapons stockpile without testing Enhance surveillance of the existing stockpile Use technical approaches to refurbish existing weapons at an appropriate pace Support the quality workforce, facilities and capabilities required to maintain confidence in the stockpile and technically support not-proliferation activities 3. Complete environmental legacy clean-up

10 Priority : Climate Change Position U.S. to lead on climate change 1. Move into leadership position in global climate change negotiations and solutions –Science and technology partnerships –Development/deployment pathways 2. Deploy technology solutions globally –Support developing world clean energy –Coordinate and share research globally 3. Advance climate science understanding