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Budget plan won't save NREL jobs

But energy focus may boost research at Golden lab in '07

Gargi Chakrabarty, Rocky Mountain News

Published February 7, 2006 at midnight

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President Bush's proposed $2.77 trillion budget, which increases spending on renewable energy programs, will not trickle down to the National Renewable Energy Laboratory in Golden.

The lab is on track to lay off up to 40 scientists, including full-time and part-time employees, early this year because of a $28 million shortfall in its budget for fiscal 2006. The fiscal year ends Sept. 30.

Although the number of layoffs is significantly lower than the lab's previous estimate of 100 - mostly because it has trimmed costs and raised revenue from additional sources - the situation will not improve this year.

"President Bush's proposed budget will not have an impact this year," said Bob Noun, NREL's deputy associate director. "The current situation is we still have to lay off between 30 to 40 employees. But we are encouraged by the areas that were covered by the president."

The impact of Bush's proposed budget on the lab in the next year remains unclear. On Monday, the Department of Energy released a fiscal 2007 budget request seeking $162 million for NREL, $10 million lower than the lab's budget in fiscal 2006.

At first glance, it might be another blow to the lab already struggling with a $28 million shortfall in 2006 compared with the previous year - a direct result of Congress earmarking or diverting a big chunk of federal funds toward other projects.

In fiscal 2006, Congress cut the DOE's budget for all renewable energy programs by more than 35 percent.

As a result, the DOE, which funds NREL and other national labs, cut the amount it gave the lab in Golden. NREL does research in wind, biomass, solar and hydrogen technologies.

Craig Stevens, a DOE spokesman, explained that despite the lower budget, NREL would be able to devote more money toward basic science research in fiscal 2007. That's because its capital expense on buildings would be reduced to $6 million from the current year's $26 million.

"The $20 million decrease in NREL's building budget would increase its science budget," Stevens said.

Moreover, the lab could receive more money in the future. Bush is calling for the solar research budget in the DOE's Energy Efficiency and Renewable Energy agency to jump 78 percent and 120 percent at the Office of Science.

Also, the budget for biomass research would jump 65 percent at the Energy Efficiency and Renewable Energy agency and 25 percent at the Office of Science.

Overall, the Advanced Energy Initiative announced by Bush seeks a 22 percent increase in research funding for alternative energy sources such as solar, wind, nuclear, clean coal and biomass. The goal is to replace 75 percent of oil imports from the Middle East by 2025.

"The bulk of all that funding . . . can be expected to go straight into NREL's budget for its research projects," U.S. Sen. Wayne Allard, R-Colo., said, supporting Bush's budget.

U.S. Rep. Mark Udall, D-Eldorado Springs, criticized Bush's proposal.

"My question to the president is this: How do layoffs at NREL and a flat budget for next year add up to a commitment to new thinking on energy?" Udall said.

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