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NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance.
This report and the study on which it is based were supported by Contract No. DE-AM01-99PO80016, Task Order DE-AT01-00EE10735.A000, from the U.S. Department of Energy. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of the agency that provided support for the project.
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THE NATIONAL ACADEMIES
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Institute of Medicine
National Research Council
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COMMITTEE ON BENEFITS OF DOE R&D ON ENERGY EFFICIENCY AND FOSSIL ENERGY
ROBERT W.FRI,
National Museum of Natural History,
Chair
WILLIAM AGNEW,
NAE,1 General Motors Research Laboratories (retired)
PETER D.BLAIR,
National Academy of Sciences
RALPH CAVANAGH,
Natural Resources Defense Council
UMA CHOWDHRY,
NAE, DuPont Engineering Technology
LINDA R.COHEN,
University of California, Irvine
JAMES CORMAN,
Energy Alternative Systems Inc.
DANIEL A.DREYFUS,
National Museum of Natural History (retired)
WILLIAM L.FISHER,
NAE, University of Texas, Austin
ROBERT HALL,
CDG Management, Inc.
GEORGE M.HIDY,
Envair/Aerochem
DAVID C.MOWERY,
University of California, Berkeley
JAMES DEXTER PEACH,
Ellicott City, Maryland
MAXINE L.SAVITZ,
NAE, Honeywell
JACK S.SIEGEL,
Energy Resources International, Inc.
JAMES L.SWEENEY,
Stanford University
JOHN J.WISE,
NAE, Mobil Research and Development Company (retired)
JAMES L.WOLF, consultant,
Alexandria, Virginia
JAMES WOODS,
HP-Woods Research Institute
Committee Subgroup on Energy Efficiency
MAXINE L.SAVITZ, Co-chair
JAMES L.WOLF, Co-chair
WILLIAM AGNEW
PETER D.BLAIR
RALPH CAVANAGH
UMA CHOWDHRY
LINDA R.COHEN
DAVID C.MOWERY
JAMES WOODS
Committee Subgroup on Fossil Energy
JACK S.SIEGEL, Chair
JAMES CORMAN
WILLIAM L.FISHER
ROBERT HALL
GEORGE M.HIDY
JAMES DEXTER PEACH
JOHN J.WISE
Committee Subgroup on Benefits Framework
JAMES L.SWEENEY, Chair
LINDA R.COHEN
DANIEL A.DREYFUS
ROBERT W.FRI
DAVID C.MOWERY
Liaison from the Board on Energy and Environmental Systems
WILLIAM FULKERSON,
University of Tennessee, Knoxville
Project Staff
RICHARD CAMPBELL, Program Officer and Study Director
JAMES ZUCCHETTO, Board Director
DAVID FEARY, Senior Program Officer,
Board on Earth Sciences and Resources (BESR)
ROGER BEZDEK, consultant
ANA-MARIA IGNAT, Senior Project Assistant
BOARD ON ENERGY AND ENVIRONMENTAL SYSTEMS
ROBERT L.HIRSCH,
RAND,
Chair
RICHARD E.BALZHISER,
NAE,1 Electric Power Research Institute (retired)
DAVID BODDE,
University of Missouri
PHILIP R.CLARK,
NAE, GPU Nuclear Corporation (retired)
WILLIAM L.FISHER,
NAE, University of Texas, Austin
CHRISTOPHER FLAVIN,
Worldwatch Institute
HAROLD FORSEN,
NAE, National Academy of Engineering, Washington, D.C.
WILLIAM FULKERSON,
Oak Ridge National Laboratory (retired) and University of Tennessee, Knoxville
MARTHA A.KREBS,
California Nanosystems Institute
GERALD L.KULCINSKI,
NAE, University of Wisconsin, Madison
EDWARD S.RUBIN,
Carnegie Mellon University
ROBERT W.SHAW, JR.,
Arete Corporation
JACK SIEGEL,
Energy Resources International, Inc.
ROBERT SOCOLOW,
Princeton University
KATHLEEN C.TAYLOR,
NAE, General Motors Corporation
JACK WHITE,
Association of State Energy Research and Technology Transfer Institutions (ASERTTI)
JOHN J.WISE,
NAE, Mobil Research and Development Company (retired), Princeton, New Jersey
Staff
JAMES ZUCCHETTO, Director
RICHARD CAMPBELL, Program Officer
ALAN CRANE, Program Officer
MARTIN OFFUTT, Program Officer
SUSANNA CLARENDON, Financial Associate
PANOLA GOLSON, Senior Project Assistant
ANA-MARIA IGNAT, Senior Project Assistant
SHANNA LIBERMAN, Project Assistant
Acknowledgments
The Committee on Benefits of DOE R&D on Energy Efficiency and Fossil Energy wishes to acknowledge and thank the staffs of the Office of Energy Efficiency and Renewable Energy and the Office of Fossil Energy for their exemplary cooperation during the course of this project. The committee called on these offices for extensive data, analyses, and presentations, which added significantly to their already heavy workload.
The committee also wishes to express appreciation to a number of other individuals and organizations for providing important background information for its deliberations. Loretta Beaumont of the U.S. House Appropriations Committee briefed us on the congressional origins of this study. Members of the committee visited the General Electric Company and Babcock & Wilcox, whose cooperation and openness are greatly appreciated. Other organizations that briefed the committee at one or more of its public meetings include the Ford Motor Company, the Gas Research Institute, Wolk Integrated Services, the Foster Wheeler Development Corporation, International Fuel Cells, Siemens Westinghouse, the Air Conditioning and Refrigeration Institute, the U.S. General Accounting Office, Avista Laboratories, the U.S. Environmental Protection Agency, the Peabody Group, CONSOL Energy Incorporated, and SIMTECHE. The committee is grateful for the facts and insights that these briefings provided.
Importantly, the committee recognizes the contribution of Roger Bezdek, whose analytic support and keen advice were essential to the completion of its work.
Finally, the chair is acutely aware of the extraordinary efforts of the members of the committee and of the staff of the Board on Energy and Environmental Systems of the National Research Council (NRC). Every member of the committee contributed to the analysis of the case studies that form the foundation of this report and to the deliberations on the report itself. The staff, led by Richard Campbell, managed a very complicated and voluminous process in accordance with the highest standards of the NRC. What the committee was able to accomplish of the ambitious agenda set by Congress is entirely due to the efforts of these persons.
This report has been reviewed by individuals chosen for their diverse perspectives and technical expertise, in accordance with procedures approved by the National Research Council Report Review Committee. The purpose of this independent review is to provide candid and critical comments that will assist the institution in making its published report as sound as possible and to ensure that the report meets institutional standards for objectivity, evidence, and responsiveness to the study charge. The review comments and draft manuscript remain confidential to protect the integrity of the deliberative process. We wish to thank the following individuals for their review of this report: Joel Darmstadter, Resources for the Future; Clark W.Gellings, Electric Power Research Institute; Robert L.Hirsch, RAND; John Holdren, John F.Kennedy School of Government, Harvard University; James J.Markowsky, American Electric Power Service Corporation (retired); John McTague, Ford Motor Company (retired); Glen R.Schleede, consultant; Frank J.Schuh, Drilling Technology, Inc.; and Lawrence Spielvogel, Lawrence Spielvogel, Inc.
Although the reviewers listed above have provided many constructive comments and suggestions, they were not asked to endorse the conclusions or recommendations nor did they see the final draft of the report before its release. The review of this report was overseen by Harold Forsen of the National Academy of Engineering. Appointed by the National Research Council, he was responsible for making certain that an independent examination of this report was carried out in accordance with institutional procedures and that all review comments were carefully considered. Responsibility for the final content of this report rests entirely with the authoring committee and the institution.
Tables and Figures
TABLES
ES-1 |
Energy Efficiency Technology Case Studies Slotted in the Matrix Cells That Are Most Relevant Today, |
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ES-2 |
Fossil Energy Technology Case Studies Slotted in the Matrix Cells That Are Most Relevant Today, |
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2–1 |
The Most Important Fossil Energy and Energy Efficiency Technological Innovations Since 1978, |
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3–1 |
Summary of the Budget for DOE’s Energy Efficiency R&D Programs, FY 1978 to FY 2000, |
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3–2 |
Expenditures for Energy Efficiency Programs Analyzed by the Committee, 1978 to 2000, |
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3–3 |
Categories and Case Studies, |
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3–4 |
Net Realized Benefits Estimated for Selected Technologies Related to Energy Efficiency RD&D Case Studies, |
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3–5 |
Energy Efficiency Technology Case Studies Slotted in the Matrix Cells That Are Most Relevant Today, |
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4–1 |
Fossil Energy Budgets for the 22 Programs Analyzed by the Committee, |
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4–2 |
Fossil Energy Programs’ Cost Sharing, 1978 to 2000, |
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4–3 |
Net Realized Benefits Estimated for Selected Fossil Energy R&D Programs, |
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4–4 |
Fossil Energy RD&D Benefits, |
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4–5 |
Realized Benefits from DOE RD&D Programs, |
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4–6 |
Fossil Energy Technology Case Studies Slotted in the Matrix Cells That Are Most Relevant Today, |
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E-1 |
Funding for Advanced Refrigerators-Freezer Compressors, |
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E-2 |
Benefits Matrix for the Advanced Refrigerator-Freezer Compressors Program, |
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E-3 |
Funding for the Compact Fluorescent Lamps Program, |
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E-4 |
Benefits Matrix for the Compact Fluorescent Lamps (CFLs) Program, |
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E-5 |
Benefits Matrix for the DOE-2 Program, |
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E-6 |
DOE Funding for the Fluorescent Lamp Electronic Ballast Program, |
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E-7 |
Benefits Matrix for the Fluorescent Lamp Electronic Ballast for Program, |
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E-8 |
DOE Funding for the Free-Piston Stirling Engine Heat Pump Program, |
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E-9 |
Benefits Matrix for the Stirling Engine Heat Pump Program, |
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E-10 |
Benefits Matrix for the Indoor Air Quality Program, |
E-11 |
Benefits Matrix for the Low-emission (Low-e) Windows Program, |
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E-12 |
Funding for the Lost Foam Program, |
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E-13 |
Benefits Matrix for the Advanced Lost Foam Technologies Program, |
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E-14 |
Selected Outage Costs, |
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E-15 |
Funding for the Advanced Turbine Systems Program (Energy Efficiency Component), |
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E-16 |
Benefits Matrix for the Advanced Turbine Systems Program (Energy Efficiency Component), |
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E-17 |
Predicted Environmental Emissions from the MTCI/StoneChem Steam Reformer and from a Tomlinson Recovery Boiler, |
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E-18 |
Funding for the Black Liquor Gasification Program, |
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E-19 |
Benefits Matrix for the Black Liquor Gasification Program, |
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E-20 |
Total Funding in IOF/Forest by Program Area, |
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E-21 |
Changes in IOF Priorities: Share of OIT/Forest Budget by Program Area, |
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E-22 |
Participation in IOF/Forest Program Then and Now, |
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E-23 |
Changes in Participation by Share of Budget, |
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E-24 |
Benefits Matrix for the IOF/Forest Program, |
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E-25 |
General Funding for the Oxy-fueled Glass Furnace Program, |
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E-26 |
Funding for the Oxy-fueled Glass Furnace Program by Technology to FY 2000, |
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E-27 |
Oxy-fuel Penetration and Characteristics by Glass Industry Segment, |
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E-28 |
Benefits Matrix for the Oxy-Fueled Glass Furnace Program, |
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E-29 |
DOE Funding for Advanced Battery R&D, |
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E-30 |
Benefits Matrix for the Advanced Batteries (for Electric Vehicles) Program, |
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E-31 |
DOE Funding for the Catalytic Conversion Program, |
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E-32 |
Benefits Matrix for the Catalytic Conversion Program, |
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E-33 |
Benefits Matrix for the PNGV Program, |
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E-34 |
MTI Stirling Engine Development Project Budgets, |
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E-35 |
General Motors STM Stirling Engine Development Project Budgets, |
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E-36 |
Benefits Matrix for the Stirling Automotive Engine Program, |
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E-37 |
Funding for Transportation PEM Fuel Cell Power Systems, |
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E-38 |
Benefits Matrix for the Transportation PEM Fuel Cell Power System Program, |
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F-1 |
Benefits Matrix for the Coal Preparation Program, |
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F-2 |
DOE Appropriations and Industry Cost Sharing for Direct Liquefaction, |
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F-3 |
Benefits Matrix for the Direct Liquefaction Program, |
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F-4 |
Benefits Matrix for the Fluidized-bed Combustion (FBC) Program, |
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F-5 |
DOE Investments in the Gas-to-Liquids Program, FY 1978 to FY 2000, |
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F-6 |
DOE Investments in the Gas-to-Liquids Program, 1999, |
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F-7 |
Benefits Matrix for the Gas-to-Liquids Program, |
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F-8 |
Benefits Matrix for the Improved Indirect Liquefaction Program, |
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F-9 |
Benefits Matrix for the Integrated Gasification Combined-Cycle (IGCC) Program, |
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F-10 |
Benefits Matrix for the Improvement of the Flue Gas Desulfurization (FGD) Program, |
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F-11 |
Benefits Matrix for the NOx Control Program, |
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F-12 |
Benefits Matrix for the Mercury and Air Toxics Program, |
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F-13 |
Benefits Matrix for the Waste Management/Utilization Technologies Program, |
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F-14 |
Funding for the Advanced Turbine Systems Program (Fossil Energy Component), |
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F-15 |
Benefits Matrix for the Advanced Turbine System (ATS) Program (Fossil Energy Component), |
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F-16 |
Funding for the DOE Fuel Cell Program, FY 1978 to FY 2000, |
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F-17 |
Benefits Matrix for the Stationary Fuel Cells Program, |
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F-18 |
DOE Funding for the Magnetohydrodynamics Program, |
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F-19 |
Benefits Matrix for the Magnetohydrodynamics (MHD) Program, |
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F-20 |
Funding for the Coal-bed Methane Program, |
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F-21 |
Benefits Matrix for the Coal-bed Methane Program, |
F-22 |
Total Funding for the Drilling, Completion, and Stimulation Program, FY 1978 to FY 1999, |
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F-23 |
ADCS Gas Project Organizational Chart, |
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F-24 |
Benefits Matrix for the Drilling, Completion, and Stimulation Program, |
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F-25 |
Summary of Environmental Benefits of Drilling Technology Advances, |
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F-26 |
Funding for the Downstream Fundamentals Program, |
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F-27 |
Benefits Matrix for the Downstream Fundamentals Program, |
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F-28 |
Benefits Matrix for the Eastern Gas Shales Program (EGSP), |
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F-29 |
Benefits Matrix for the Improved Enhanced Oil Recovery Program, |
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F-30 |
Benefits Matrix for the Field Demonstration Program, |
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F-31 |
Funding for the Oil Shale Program, |
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F-32 |
Benefits Matrix for the Oil Shale Program, |
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F-33 |
Benefits Matrix for the Seismic Technology Program, |
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F-34 |
Benefits Matrix for the Western Gas Sands Program (WGSP), |
FIGURES
ES-1 |
Matrix for assessing benefits and costs, |
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ES-2 |
Derivation of columns for the benefits matrix, |
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2–1 |
Matrix for assessing benefits and costs, |
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2–2 |
Derivation of columns for the benefits matrix, |
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3–1 |
Distribution of DOE’s budget by sector for its energy efficiency R&D programs, |
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3–2 |
Consumption of energy in residential and commercial buildings in 1999 by application, |
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3–3 |
Percentage of primary energy used in the manufacturing sector by major industrial category, 1999, |
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3–4 |
Percentage of fuel consumption for transportation by service, 1999, |
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3–5 |
Electricity consumed by refrigerators, 1947 to 2001, |
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4–1 |
Funding for DOE’s Office of Fossil Energy, FY 1978 to FY 2000, |
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4–2 |
Overall budget, FY 1978 to FY 2000 ($10,528 million), |
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4–3 |
Budget for coal and gas conversion technologies, FY 1978 to FY 2000 ($6149 million), |
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4–4 |
Adjusted budget for coal and gas conversion technologies, FY 1978 to FY 2000 ($2956 million), |
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4–5 |
Budget for DOE’s fossil energy environmental programs, FY 1978 to FY 2000 ($410 million), |
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4–6 |
Reported budgets for electricity production, FY 1978 to FY 2000 ($2502 million), |
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4–7 |
Reported budgets for oil and gas production research, FY 1978 to FY 2000 ($1468 million), |
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D-1 |
Matrix for assessing benefits and costs, |
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D-2 |
Derivation of columns for the benefits matrix, |
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E-1 |
Electricity consumed by refrigerators, 1947 to 2001, |
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E-2 |
Distribution of OAAT PNGV funds by technology, |