FY08 President’s Budget Request Doug Goodman CFO Field Operations Manager February 8, 2007

1. FY08 President’s Budget Request Doug Goodman CFO Field Operations Manager February 8, 2007

2. FY08 Federal Budget Builds on and Reaffirms FY07 Administration Priorities • FY08 Federal budget request formally sent to the Congress and released to the public on 2/5/07 • Funding to fight the war in Iraq and global war on terror • Reduced spending growth and cuts for discretionary federal programs, with a renewed push for federal deficit reduction • Containing growth on mandatory federal programs (e.g., entitlement programs, such as Social Security, Medicare….)

3. FY08 DOE Request Rolled Out on 2/5/07 • Secretary Bodman and senior DOE leadership team briefed the press, congressional staff, and stakeholders on budget on 2/5/07 • DOE FY08 budget request can be viewed in its entirety by going to the DOE Budget Office’s webpage by accessing the following link: http://www.mbe.doe.gov/budget/index.htm

4. FY08 DOE Budget Request Builds on FY07 Five Themes in DOE’s FY08 Budget Request • Investing in World-Class Science • Advancing Energy Security • Reducing Dependence on Foreign Sources of Energy • Promoting the Use of Clean Energy • Honoring our Commitments

5. Leadership in Science – through the American Competitiveness Initiative • Opportunities exist for scientific and technological breakthroughs in: • Biotechnology • Nanotechnology • High performance computing and networking • Climate Change • Hydrogen Fuels • Fusion Energy • The nations at the forefront will lead the global economy

6. Leadership in Science – through the American Competitiveness Initiative (cont’d) • World class science requires significant investment • DOE office of Science plays a critical role in: • Stewardship of 10 world-class national laboratories • Primary builder and operator of scientific facilities in the U.S. • Educating and training the next generation of scientists and engineers • Sponsoring basic research aimed at meeting tomorrow’s growing energy challenge

7. Advancing Energy Security + Reduce Dependence on Foreign Energy Sources + Promote Clean Energy • Increase energy options – reduce our dependence on foreign energy sources • Following through on Advanced Energy Initiative ($2.7B) – Hydrogen, Fuel Cells, Biomass, Solar, Clean Coal, Nuclear Power 2010, Fusion Energy, Wind, Vehicle Technology • Global Nuclear Energy Partnership ($405M) • Securing against energy supply disruptions- SPR expansion ($168M) – increase capacity to 1.5B barrels by FY 2027 • Implementing a Loan Guarantee Program ($9B cap)

9. What does DOE FY08 budget mean to LBNL? • The Lab Table provided by DOE with its FY08 budget shows LBNL funding by office (see attachment) • Overall, requested FY08 funding total $435M, which is up ~$19M from the FY07 request of $416M • Office of Science (SC) funding is at $384M, +$11M from FY07 request • Office of Energy Efficiency and Renewable Energy (EERE) funding is at $20M,+$3M from FY07 request • Work for Others funding is $8.8M, +6M from FY07 request • All other DOE offices essentially flat or slightly below FY07

10. In Conclusion • This is just the beginning of the FY08 process, and we’ll know a lot more about where we’re likely to land later in the year • Given the state of funding federal discretionary programs, I believe the Lab is at a good starting point in the process • The Lab’s mission is excellently suited to solve our country’s most pressing energy and scientific/technical problems and challenges

11. FY08 Budget Request Backup Slides

12. Highlights of Office Of Science Funding for Lab Highlights include: • Two largest SC program funding areas (BES and ASCR) are up in FY08 compared with FY07 • BES: $142M, + $17M from FY07 • ASCR: $84M, + $7M from FY07 • BER and HEP are slightly down in FY08 compared with FY07 • BER: $69M, -$4M from FY07 • HEP: $42M, -$3M from FY07

13. Highlights of Office Of Science Funding for Lab (Cont’d) Funding Highlights within BES include: • $17.2M construction for ALS User Support Building • $53.2M (+$2.3M) for ALS operations • $19.9M for Molecular Foundry operations, construction funding ended in FY07 • $6.1M for Transmission Electron Aberration Corrected Microscope – a major item of equipment

14. Highlights of Office Of Science Funding for Lab (Cont’d) Funding Highlights within ASCR include: • $54.8M for NERSC operations - includes NERSC5, which will dramatically increase peak capacity to 100-150 teraflops • $24.3M (+$1.6M) for ESnet – implementing the next generation optical network infrastructure for U.S. science Funding Highlights for BER include: • $60M for the JGI (all locations) and $10M for GTL Sequencing at JGI/PGF • $25M for a third GTL Bioenergy Research Center – funding that the Lab will compete for

15. Highlights of Office Of Science Funding for Lab (Cont’d) Funding Highlights within HEP include: • Support for R&D on ground- and space-based dark energy experiments begun in FY07, will continue in FY08 • $3.5M for SNAP R&D Funding Highlights within NP include: • $4.4M is provided for continued fabrication of GRETINA (a gamma ray detector for understanding rare isotope nuclei) • $3.4M for 88-Inch Cyclotron operations • $2M for Heavy Ion LHC Experiments, a major item of equipment • $500K for Cryogenic Underground Observatory for Rare Events (CUORE), a major item of equipment to be completed in 2012

16. Highlights of Office Of Science Funding for Lab (Cont’d) Funding Highlights within Science Labs Infrastructure include: • $6.145M for the continued demolition of the Bevatron • $7M for seismic and structural safety upgrades to Buildings 50 and 74