Introduction:
DOE Deputy CFO Owen Barwell welcomed attendees to the FY13 budget presentation. He thanked various departments involved in organizing the event. No Q&A sessions during the presentation, but breakout sessions and a reception were scheduled.

Secretary Chu’s Remarks:
Secretary Chu quoted President Obama’s State of the Union address, emphasizing goals for energy independence and economic prosperity. The budget reflects these goals, investing in clean energy, science, innovation, energy savings, manufacturing efficiency, and nuclear safety. The budget request is for $27.2 billion, involving tough choices to cut back in some areas and invest in others.

Budget Cuts:
The budget proposes $4 billion in cuts to unnecessary fossil fuel subsidies. It scales back a successful sodium ion battery project, which is now being picked up by the commercial sector. Projects that don’t work or fail to meet milestones are being discontinued, totaling nearly 35 projects in recent years.

Investment Priorities:
The budget invests in areas with the greatest potential impact, such as onshore wind, which has become a highly developed and increasingly affordable technology. Investments are guided by a long-term strategic plan and a detailed Quadrennial Technology Review, outlining a vision for energy development.

Background:
Steven Chu, the U.S. Secretary of Energy, discusses the Department of Energy’s (DOE) financial and operational efficiency initiatives.

Onshore Wind Energy:
Onshore wind is the second least expensive form of new energy in the open market, following natural gas. Efforts are being made to reduce the cost of offshore wind energy.

Integrated Funding Approach:
DOE takes an integrated approach to funding, considering private sector investments and focusing on areas where DOE can make the most impact. Business lines have been organized to align with technology development and projected business models. Coordinating entities have been established to ensure collaboration across business lines.

Cost-Saving Measures:
Reduced travel and increased teleconferencing have saved $3 million. Non-refundable airline ticket purchases have been implemented to save on travel costs. Economy of purchasing power has saved $330 million in procurement savings. Overhaul of external communication interfaces has saved $10 million.

Vehicle Fleet Reduction:
DOE’s vehicle fleet in Germantown headquarters is being reduced by 35%. Laboratories and contractors are also required to reduce their fleets by 35% compared to 2005 levels.

Hiring Efficiency:
DOE has reduced the time to hire by more than 40% and aims to continue improving this process.

Technology Transfer:
Efforts are underway to streamline the transfer of discoveries and inventions from universities and national labs to the private sector. Cooperative Research and Development Agreements (CRADA) are being streamlined to reduce negotiation time. Funding requirements for CRADAs are being reduced from three months to two months or possibly one month, with careful consideration of risk management.

America’s Next Top Energy Innovator Initiative:
The initiative aims to support smaller companies in licensing national lab technologies and commercializing them.

National Laboratory Patent Licensing:
The Department of Energy (DOE) is making patent licensing more flexible to encourage investment and partnerships. National Laboratories can now accept equity positions or small amounts of upfront cash in lieu of high attorney fees.

Agreement for Commercializing Technology (ACT):
DOE has implemented ACT as a pilot initiative to create alternative partnerships between industry and national laboratories. This initiative aims to make it easier for companies to access and commercialize DOE technologies.

Industry Meetings and Collaboration:
DOE organizes meetings and workshops to facilitate collaboration between industry and national laboratories. These meetings focus on areas such as materials for energy, high-performance computing, and advanced manufacturing.

Budgetary Allocations for Energy Efficiency and Manufacturing:
DOE’s budget includes $310 million for improving commercial and residential building efficiency. The budget also allocates $290 million for advanced manufacturing research and development, focusing on new materials and processes.

Advanced Computing and Manufacturing:
DOE recognizes the role of advanced computing in aiding manufacturing processes. Examples include Cummins Diesel and Goodyear Tire using advanced computing to design more efficient engines and tire treads.

Coordinated Efforts in Manufacturing R&D:
DOE is coordinating manufacturing research and development across different offices, including the Office of Science, EERE, and RPE. This collaboration aims to enhance innovation and technological advancements in manufacturing.

Clean Energy Leadership and Investment:
DOE’s goal is to lead in clean energy technologies, with a focus on invention, manufacturing, and global sales. The budget includes funding for wind, solar, geothermal, biomass, and other renewable energy sources.

Extension of Successful Programs:
DOE’s budget proposes extending successful programs like the 1603 grant, production tax credits, and advanced manufacturing tax credits. These programs have stimulated clean energy investment and job creation.

Grid Technologies and Small Modular Reactors:
The budget allocates funds for smart grid, energy storage, and cybersecurity technologies. It also includes funding to support the licensing of small modular reactors and engagement with industry.

Carbon Capture and Storage:
DOE is investing in carbon capture and storage technologies, including carbon capture utilization and storage (CCUS). The goal is to develop more efficient carbon capture methods and explore the use of captured carbon for enhanced oil recovery.

Natural Gas as a Transition Fuel:
DOE acknowledges the role of natural gas as a transition fuel towards a cleaner energy future. The department emphasizes its early research contributions to unconventional gas sources like shale gas and tight gas.

Continued Research in Methane Hydrates:
DOE is partnering with industry to explore the potential of methane hydrates as an energy source. The department recognizes the need for long-term research in this area.

DOE Budget and Blue Ribbon Commission Recommendations:
The DOE’s budget aligns with the recommendations of the Blue Ribbon Commission, including $60 million for nuclear waste R&D.

Commitment to Science and Research:
The budget includes $5 billion for the Office of Science to promote U.S. leadership in innovation and research. Significant increases are also proposed for the National Science Foundation (NSF) and the National Institute of Standards and Technology (NIST).

Energy Hubs and Electricity Systems:
The budget supports the establishment of new hubs focused on electricity systems, coordinating transmission and distribution with energy storage, fossil fuels, and renewables. This is in anticipation of renewable energy becoming cost-effective without subsidies in the near future.

Energy Frontier Research Centers:
$120 million is allocated for the Energy Frontier Research Centers, which have a strong track record of publications and patent applications.

ARPA-E Funding:
The budget includes $350 million for ARPA-E, which funds innovative energy projects with the potential for high impact. Several ARPA-E projects have attracted significant private capital investment.

Nuclear Security:
The budget includes $11.5 billion for the National Nuclear Security Administration (NNSA) to support the President’s objectives. This includes maintaining a safe and secure stockpile, nonproliferation work, and reducing nuclear dangers and environmental risks. $2.5 billion is allocated for nonproliferation work and $5.7 billion for cleaning up the environmental legacy of the Cold War.