SECTION ONE INTRODUCTION TO THE DEPARTMENT OF ENERGY EXECUTIVE SUMMARY Welcome to the Department of Energy. This book provides an overview of the Department of Energy (DOE). The opening sections describe the mission areas, organizational structure and upcoming critical issues of the Department, followed by brief descriptions of DOE’s goals and programs. Later sections provide overviews of the Department’s budget, staffing, contract management, project management, Congressional jurisdiction, Government Accountability Office (GAO) and DOE’s Inspector General (IG) oversight and DOE high-visibility rulemakings. We hope that this document enables you to acquire useful information about DOE. If you have any questions, please contact the Office of Program Analysis and Evaluation, at 202-586-1911. Issued on November 27, 2012. U.S. Department of Energy, 2012 Section One, page 1 TABLE OF CONTENTS Section One: Introduction to the Department of Energy Executive Summary Table of Contents Quick Facts, Mission and Scope, Organizational Structure, Leadership Section Two: Critical Issues Section Three: Goal 1: Transform our Energy Systems Under Secretary of Energy (S-3) Office of Energy Efficiency and Renewable Energy (EERE) Office of Fossil Energy (FE) Office of Nuclear Energy (NE) Office of Electricity Delivery and Energy Reliability (OE) Office of Indian Energy Policy and Programs (IE) Advanced Research Projects Agency – Energy (ARPA-E) Power Marketing Administrations (PMAs) Energy Information Administration (EIA) Loan Programs Office (LPO) Section Four: Goal 2: The Science and Engineering Enterprise Office of Science (SC) Section Five: Goal 3: Secure Our Nation National Nuclear Security Administration (NNSA) Office of Environmental Management (EM) Office of Legacy Management (LM) Section Six: Goal 4: Management and Operational Excellence Achieving Management and Operational Excellence Associate Deputy Secretary (ADS) Field Management Council (FMC) Staff and Support Offices: Summary Chief Financial Officer (CFO) Chief Human Capital Officer (CHCO) Chief Information Officer (CIO) Congressional and Intergovernmental Affairs (CI) Economic Impact and Diversity (ED) General Counsel (GC) Heath, Safety and Security (HSS) Hearings and Appeals (HG) Human Capital Management (HC) Inspector General (IG) Intelligence and Counterintelligence (IN) Management (MA) Policy and International Affairs (PI) Public Affairs (PA) U.S. Department of Energy, 2012 Section One, page 2 Section Seven: Budget Overview Continuing Resolution (CR) Timeline and Critical Activities Recovery Act Assets and Liabilities Section Eight: Federal and Contractor Staffing Federal Contractor Section Nine: DOE Contract Management Major Site and Facility Contracts Section Ten: DOE Project Management Framework Concerns Improvements Section Eleven: Congressional Jurisdiction, Reports and Rulemakings Part 1: Congressional Jurisdiction and Oversight Congressional Committees Major Reports Due to Congress after Inauguration Part 2: Upcoming Reports and Rulemakings GAO and DOE-IG Reports of Interest High-Visibility DOE Rulemakings U.S. Department of Energy, 2012 Section One, page 3 DOE Verbal Shortcuts and Acronyms The following acronyms and shortcuts are used at DOE to quickly identify people and offices: People: S-1: Secretary of Energy S-2 or DS Deputy Secretary of Energy ADS Associate Deputy Secretary of Energy S-3: Under Secretary (sometimes referred to as Under Secretary of Energy) S-4: Under Secretary for Science NA-1: Under Secretary for Nuclear Security, and Administrator for NNSA U/S: Under Secretary abbreviation Dash 1s: Assistant Secretaries/ Program Element Heads (For example, FE-1 is the Assistant Secretary of Fossil Energy.) Dash 1s can also be PSOs or Program Secretarial Officers. Dash 1s are generally political appointees except for PMAs and LM, and several staff and support offices (CIO, HG, HSS, ED and MA). PDAS: Principal Deputy Assistant Secretary (generally, the most senior career employee) DAS: Deputy Assistant Secretary (generally, a senior career employee) PAS: President Appointed/Senate Confirmed Program Offices/Administrations: Staff and Support Offices EERE: Office of Energy Efficiency and Renewable Energy CFO: Chief Financial Officer FE: Office of Fossil Energy CHCO: Chief Human Capital Officer NE: Office of Nuclear Energy CIO: Chief Information Officer OE: Office of Electricity Delivery and Energy CI: Congressional and Intergovernmental Reliability Affairs IE: Office of Indian Energy Policy and Programs ED: Economic Impact and Diversity ARPA-E: Advanced Research Projects Agency – Energy GC: General Counsel PMAs: Power Marketing Administrations HSS: Health, Safety and Security EIA: Energy Information Administration HG: Hearings and Appeals LPO: Loan Programs Office IG: Inspector General SC: Office of Science IN: Intelligence and Counterintelligence NNSA: National Nuclear Security Administration MA: Management EM: Office of Environmental Management PI: Policy and International Affairs LM: Office of Legacy Management PA: Public Affairs U.S. Department of Energy, 2012 Section One, page 4 INTRODUCTION TO THE DEPARTMENT OF ENERGY Quick Facts Employees: Roughly 16,0001 federal employees and 92,000 contractor employees Budget: Approximately $26 billion Sites: Over 80 laboratories, sites and facilities across the U.S. and seven international offices A Rich History The Department of Energy (DOE) has one of the richest and most diverse histories in the federal government. DOE’s origins start with the Manhattan Project and the race to develop the atomic bomb during World War II. Following the war, Congress engaged in a vigorous and contentious debate over civilian versus military control of the atom. The Atomic Energy Act of 1946 settled the debate by creating the Atomic Energy Commission, which took over the Manhattan Engineer District's sprawling scientific and industrial complex. The Atomic Energy Act of 1954 ended exclusive government use of the atom and began the growth of the commercial nuclear power industry, giving the Atomic Energy Commission authority to regulate the new industry. In response to changing needs in the mid 1970s, the Atomic Energy Commission was abolished and the Energy Reorganization Act of 1974 created two new agencies: the Nuclear Regulatory Commission to regulate the nuclear power industry and the Energy Research and Development Administration to manage the nuclear weapon, naval reactor, and energy development programs. However, the extended energy crisis of the 1970s soon demonstrated the need for unified energy organization and planning. The Department of Energy Organization Act created DOE in 1977 by bringing together several federal agencies and programs. The Department of Energy, activated on October 1, 1977 as the 12th Cabinet agency, assumed the responsibilities of the Energy Research and Development Administration, the Federal Energy Administration, the Federal Power Commission, and parts and programs of several other agencies. The National Defense Authorization Act for Fiscal Year 2000 (FY 2000) established the National Nuclear Security Administration, a semi-autonomous organization within the Department, on March 1, 2000. The establishment of the Department of Energy brought most federal energy activities under one umbrella and provided the framework for a comprehensive and balanced national energy plan. The Department undertook responsibility for long-term, high-risk research and development of energy technologies, federal power marketing, energy conservation, the nuclear weapons program, energy regulatory programs, and a central energy data collection and analysis program. DOE’s Mission and Vast Scope As stated in the DOE 2011 Strategic Plan, the mission of the Department of Energy is to ensure America’s security and prosperity by addressing its energy, environmental, and nuclear challenges through transformative science and technology solutions. The Strategic Plan provides the policy and operational framework for implementing the Department’s mission through four strategic goals: 1 This total includes the Federal Energy Regulatory Commission (FERC), which was created as an independent regulatory commission within the Department of Energy by Section 401 of the DOE Organization Act of 1977. In 2012, FERC had about 1,500 federal employees, while DOE had about 14,500, for a total of about 16,000 federal employees. U.S. Department of Energy, 2012 Section One, page 5 Goal 1: Transform our Energy Systems. Catalyze the timely, material, and efficient transformation of the nation’s energy system and secure U.S. leadership in clean energy technologies. Goal 2: The Science and Engineering Enterprise. Maintain a vibrant U.S. effort in science and engineering as a cornerstone of our economic prosperity with clear leadership in strategic areas. Goal 3: Secure our Nation. Enhance nuclear security through defense, nonproliferation, and environmental efforts. Goal 4: Management and Operational Excellence. Establish an operational and adaptable framework that combines the best wisdom of all Department stakeholders to maximize mission success. DOE Strategic Plan The four broad goals articulated in the Strategic Plan are described in the sections below, along with those programs focused towards that goal. It is important to emphasize that the programmatic efforts of the Department are not stove-piped narrowly into these goals, but cross multiple goals. For example, Transform our Energy Systems relies extensively on activities in the Office of Science,