Department of Energy (DOE) FY 2007 Report to Congress Laboratory Directed Research and Development (LDRD) at the DOE National Laboratories (Report also available at http://www.mbe.doe.gov/cf1-2/ldrd.htm) December 2007 Table of Contents Executive Summary 3 1. Introduction 4 1.1 Background 4 1.2 Purpose of the Report 4 2. FY 2007 LDRD Program 6 2.1 Financial Information 6 2.1.1 LDRD Funding Mechanism 6 2.1.2 FY 2007 Expenditures 6 2.1.3 FY 2007 LDRD Allocation Percentages 7 2.2 Workforce Development 8 2.3 LDRD and the Work for Others (WFO) Program 10 3. FY 2007 PDRD and SDRD Programs 12 3.1 Plant Directed Research and Development Programs 12 3.2 Site Directed Research and Development Program 12 4. Report Conclusions 13 Appendix 1 Secretarial Affirmation 14 Appendix 2 Legislated Reporting Requirements 15 Appendix 3 Listing of FY 2007 Projects 17 2 FY 2007 LDRD Report to Congress Executive Summary The Laboratory Directed Research and Development (LDRD) program at the Department of Energy’s (DOE’s) multi-program national laboratories, as well as analogous programs at the Department’s plants and at the Nevada Test Site, are Congressionally authorized programs designed to build capability to maintain the vitality of these nationally important institutions. This document fulfills all Congressionally requested LDRD program reporting requirements. Overall, the multi-program national laboratories included in this report devoted approximately $499 million to LDRD, funding projects ranging in size from less than $5,000 per year to over $3 million, addressing topics that span the entire range of DOE’s broad scientific mandate. Based on the analysis and review (discussed in Section 2.1.3 of this report) of total FY 2007 LDRD funding of $499 million, $410 M of FY 2007 LDRD investments were made in projects expected to benefit the defense and national security missions. In addition, FY 2007 investments totaling $366 million were made in projects expected to benefit non-defense customer mission areas, and $200 million in projects expected to benefit DHS programs. In addition, the production plants invested approximately $21 million through the Plant Directed Research and Development (PDRD) program to fund science and technology projects with the potential to enhance the plants’ mission-related manufacturing capabilities, operations, and core technical competencies. Also, the Nevada Test Site invested approximately $6 million through its Site Directed Research and Development (SDRD) Program. In response to the fiscal year (FY) 2002 Energy and Water Development Appropriations Conference Report, the Secretary issued guidance requiring all LDRD laboratories to notify other Federal agencies concerning LDRD charges. With the creation of the DHS, there are additional provisions for the notification of LDRD charges, as well as requirements for acknowledgements regarding the benefits of LDRD, prior to final approval of all DHS projects (see Section 2.3). Collectively these policies provide the basis for the Secretary’s affirmation that all FY 2007 LDRD activities derived from funds of other Federal agencies have been conducted in a manner that supports the science and technology development that benefits the programs of the sponsoring agencies and are consistent with the appropriations acts providing funds to those agencies. That requested affirmation is included as Appendix 1. An important component of the LDRD program’s contribution to the laboratories’ future is its ability to attract promising young scientists and engineers to the institutions. LDRD-funded post-doctoral appointments, for example, supported about 39 percent of all post-doctoral scientists and engineers at the reporting multi-program national laboratories in FY 2007. In addition, graduate students participate in some LDRD projects, and the LDRD program provides a mechanism for scientists and engineers at the laboratories to keep themselves current in their fields. The Department has concluded that the LDRD program helps to maintain the vitality of the laboratories that support the Department’s missions and national needs (especially at the weapons laboratories). We have and will continue to carefully review the management and administrative procedures and funding levels at each of the relevant laboratories. 3 FY 2007 LDRD Report to Congress 1. Introduction 1.1 Background Pursuant to statutory authorizations, the DOE multi-program national laboratories and manufacturing plants, and the Nevada Test Site (NTS), operate research and development programs using a portion of their overall budgets for the purpose of investing in future capabilities. This document reports on these programs for FY 2007. LDRD, the first of these programs, was implemented at the DOE multi-program national laboratories to formalize what had been a long-standing practice, authorized by legislation, to use a percentage of the laboratory’s total budget for critical research and development efforts that the laboratory determined to be important, but were not directly supported by DOE. Within the overall context of maintaining the vitality of the laboratories, the specific purpose of the LDRD program is to provide the DOE laboratories with the opportunity and flexibility to undertake overhead-funded research and development activities to: (1) pursue new and innovative scientific and technological ideas; (2) enhance the scientific and technological vitality of the institution; (3) manage strategic direction; and (4) develop and retain new workforce capabilities. DOE policy provides guidance to ensure effective management and oversight of the LDRD program while supporting the laboratories’ abilities to pursue innovative self-selected projects with the concurrence of the DOE/NNSA. The process is consistent with DOE’s management philosophy for all research and development activities, and it includes annual planning and reporting documents as well as program and peer reviews. 1.2 Purpose of the Report Formally, this report responds to the Conference Report (H.R. Report No. 106-988) accompanying the Energy and Water Development Appropriations Act, 2001, which requested DOE’s Chief Financial Officer “to develop and execute a financial accounting report of LDRD expenditures by laboratory and weapons production plant.” It also responds to the Conference Report (H.R. Report No. 107-258) accompanying the Energy and Water Development Appropriations Act, 2002, which requested the Secretary of Energy to include in the annual report to Congress an affirmation that all LDRD activities derived from funds of other agencies have been conducted in a manner that supports science and technology development that benefits the programs of the sponsoring agencies and is consistent with the appropriation acts that provided funds to those agencies. Such an affirmation is included in Appendix 1 of this report. 4 Further, this report addresses Section 3136(b)(1) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201), which requires submission each year of “a report on the funds expended during the preceding fiscal year on activities under [the LDRD Program] to permit an assessment of the extent to which such activities support the national security mission of the Department of Energy.” Based on the analysis and review (discussed in Section 2.1.3 of this report) of total FY 2007 LDRD funding of $499 million, $410 M of FY 2007 LDRD investments were made in projects expected to benefit the defense and national security missions. This report addresses what research and development activities the funding supports, and why the program is important to DOE and the laboratories. The multi-program national laboratories organize their respective programs according to their individual needs; however, the LDRD program does have a common administrative approach consistent with the statutory authorizations and Departmental guidelines. This report describes the LDRD program and its implementation at the various DOE multi- program national laboratories. Newer, analogous programs implemented at the Nevada Test Site and at the manufacturing plants are summarized in Sections 3.1 and 3.2 of this report. They are authorized under separate legislation. The Plant Directed Research, Development and Demonstration (PDRD) Site-Programs are consistent with the statutory authorizations found as stated in the Energy and Water Development Appropriations Act, 2001 (Section 310) and the Defense Authorization Act for Fiscal Year 2001 (Section 3156) at the following sites: • The Kansas City Plant, Kansas City, Missouri; • The Y-12 Plant, Oak Ridge, Tennessee; • The Pantex Plant, Amarillo, Texas; and • The Savannah River Plant, Aiken, South Carolina. The Site Directed Research, Development and Demonstration (SDRD) program is consistent with the statutory authorizations found in Section 310 of Energy and Water Development Appropriations Act, 2002, which authorizes a program for directed research and development at the NTS. Section 311 of the Energy and Water Development Appropriations Act, 2006, Public Law 109-103, raised the maximum LDRD funding level to 8 percent and the PDRD and SDRD funding level to 3 percent and makes all the DOE labs eligible for LDRD funding. It also applies overhead costs to LDRD, PDRD, and SDRD. In FY 2007, the Savannah River National Laboratory (SRNL), the National Renewable Energy Laboratory (NREL), and the Princeton Plasma Physics Laboratory (PPPL) initiated LDRD programs based on this legislation. 5 2. FY 2007 LDRD Program