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Estimate of Appropriation The budget estimates for Direct Program Operating Expenses for FY 1974 provide for total obligations of $2,662,050,000 to be fur by (1) a new appropriation of $1,754,750,000 (2) an estimated $692,000,000 to be received as revenues from non-Federal sources during the fiscal year.and (3) an unobligated balance of $215,300,000 available at the start of the year.
Estimates of Costs and Obligations The budget estimates for this appropriation are stated in terms of accrued costs for each of the AEC's direct operating programs. "Accrued costs" denotes the actual application of labor, materials and services to the program during the year, but excludes depreciation of facilities used in the operations. The AEC does, however, maintain accounts for depreciation for the purpose of determining total costs of production and for use in establishing prices for services rendered or products sold to others.
The costs of operation are reconciled to the total obligations to be incurred during the year by estimating the build-up or decrease during the year of the resources that are to be applied to future years' operations. These estimates are included in the section titled "Increase or Decrease in Selected Resources" and include inventories and undelivered orders.
From total obligations are deducted the revenues estimated to be obtained from non-Federal sources in order to arrive at the amount of appropriations required. These revenues include income from the sale and lease of products, materials, services performed for others, and other miscellaneous sources. These revenues are identified and summarized under the tab "Revenues Applied."
Also this section includes a statement of AEC's Reimbursable Program (for the first time). This results from the change this year in the presentation of the Appendix to the President's Budget, whereby the Reimbursable Program has been consolidated with the Direct Program in AEC's Program and Financing schedule. In previous years the Reimbursable Program was included under the Advances and Reimbursements Schedule in the Budget Appendix that has now been eliminated. It should be noted that the costs and obligations related to the Reimbursable Program are not financed by AEC's appropriated funds but solely through reimbursable agreements with other Federal agencies,
The following table summarizes the accrued costs for AEC's Direct Program and for the Reimbursable Program, and the total obligations for each, for fiscal years 1972, 1973 and 1974. The detail justifications for the Direct Program activities are presented in the same order as they appear in this summary table,
SUMMARY OF ACCRUED OPERATING COSTS
Estimate FY 1973
Estimate FY 1974
Accrued Costs by Activity:
Total Accrued Costs Direct Program
Increase or decrease in Selected Resources
Total Obligations for Direct Program
Net Obligations (Financed by Appropriated Funds)
Sale of Products ..
Total Accrued Costs Reimbursable Program
Total Obligations for Reimbursable Program
Financing of Obligations The financing of the estimated total obligations of $2,662,050,000 proposed in the budget estimates for 1974, together with comparable data for 1972 and 1973, is summarized in the following table:
Funds Available for Obligations:
Unobligated balance, beginning of year
Total Funds Available for Obligations
Total Obligations Incurred Direct Program
$ 119,507,699 1,950,130,000
The estimated amounts available
are estimated at $1,866,400,000.
for expenditure in 1972, 1973, and 1974, the remaining unexpended balances and the expenditures for each year are shown in the
Expenditures for Operating Expenses Expenditures
from the "Operating Expenses" appropriation for
Funds Available for Expenditure:
Total Funds Available for Expenditure
Unexpended balance, end of year:
Unexpended balance, end of year:
15,524,273 HIGHLIGHTS OF OPERATING PROGRAMS
There follows a brief description of each of the direct programs set forth in the summary on page GS-2.
1. Nuclear Materials Program Operating costs for the nuclear materials program are estimated at $540.8 million in 1974, compared with 1973 estimated costs of $433.7 million and 1972 actual costs of $383.2 million. The 1974 program estimates provide for continuation of uranium resource production evaluation activities and for the production of special nuclear materials to meet weapons production schedules and requirements for other programs. Also included in this program for 1974 are estimates for AEC waste burial ground operations, the long-term management and research and development related thereto of all radioactive wastes generated by AEC operations and all high level wastes generated by the nuclear industry, and operational safety related activities. In the production of special nuclear materials, uranium concentrates are processed into feed materials from which plutonium and other products are produced at Richland, Washington, and Savannah River, South Carolina and uranium is enriched in the isotope U-235 in plants at Oak Ridge, Tennessee; Paducah, Kentucky; and Portsmouth, Ohio. The estimates for diffusion plants also provide for the enrichment of feed supplied from the private sector pursuant to Sec. 16lv of the Atomic Energy Act of 1954, as amended, and for which revenues resulting from charges for separative work are budgeted under the Revenues Applied Program. The 1974 estimates provide for the continued operation of three reactors at Savannah River and N reactor at Richland. The major increases in 1974 are for electric power for the diffusion plants and for the operation of reactors. Work will continue on process improvements to assure continuity and safety of operations, more economical methods of production, and more timely development of new production processes.
2. Weapons Program Operating costs for the weapons program are estimated at $883.3 million in 1974, compared with 1973 estimated
3. Naval Reactor Development Program Operating costs for the Naval Reactor Development Program are estimated at $154.2 million in 1974, compared with 1973 estimated costs of $149.8 million and 1972 actual costs of $138.9 million, The Naval Reactor Development Program is aimed at designing and developing improved naval nuclear propulsion plants and reactor cores in a wide range of power ratings to meet the military requirements of the Department of Defense. The pressurized water nuclear propulsion plants and cores under development are suitable for installation in naval vessels ranging in size from small submarines to large combatant surface ships. During 1974 a high level of effort will continue on development of an advanced core with longer life for application to nuclear-powered guided-missile frigates and high-speed submarines, and on the development of advanced reactors
An increased level of effort will be directed toward the development of a submarine propulsion plant for the for submarines. TRIDENT submarines.