General and special funds-Continued

OPERATING EXPENSES-Continued

Total program costs in 1966 are estimated at $2,273.6 million or $72.5 million less than the estimated 1965 costs of $2,346.1 million, and $150.3 million less than actual costs of $2,423.9 million for 1964. The principal 1966 increases are for reactor development, physical research, biology and medicine, and the civilian application of isotopes and nuclear explosives. These increases are more than offset by decreases in the raw materials, special nuclear materials, and weapons programs.

In 1966, the total program obligations will be more than program costs, the difference being obligations to be incurred for future years' costs. Total program obligations for operating expenses in 1966 are estimated to be $2,314.1 million compared to $2,333.2 million in 1965 and $2,463.1 million in 1964.

The schedule of costs by activity does not include nonbudgetary costs such as depreciation charges, accrued annual leave earned but not taken by AEC employees, the cost of source and special material consumed and sold, etc.; in total, these are as follows: 1964, $326 million; 1965 estimate, $365 million; 1966 estimate, $370 million. 1. Raw materials.-Uranium concentrates are procured for processing in the AEC production facilities. Procurement of concentrates in 1966 is estimated at 12,845 tons based on current contractual commitments and an estimated total domestic deferral of 15,000 tons under the stretchout program. It is expected that all contractual It is expected that all contractual amendments related to the domestic stretchout program will be completed during fiscal year 1965. The 1966 estimate reflects a decrease of 2,830 tons from the 1965 estimate of 15,675. Procurement in 1964 was 18,654 tons. 2. Special nuclear materials. Special nuclear materials are produced to meet weapons production schedules and requirements for other programs. Uranium concentrates are processed into feed materials from which plutonium and other products are produced in the reactors at Richland, Wash., and Savannah River, S.C., and the isotope uranium 235 is extracted in plants at Oak Ridge, Tenn., Paducah, Ky., and Portsmouth, Ohio. Production of special nuclear materials will decline somewhat in 1966 as a result of reduced cascade power and the first full year of operation after the shutdown of four production reactors during 1964 and 1965. Work will continue on process improvements to assure continuity and safety of operation and more economical methods of production.

3. Weapons.-The weapons program encompasses the production of atomic weapons; the maintenance of stockpiled weapons in a state of constant readiness; the design, development and underground testing of new weapons types; preparation for and maintenance of a readiness capability to resume atmospheric testing; and participation with the Department of Defense in the development of test detection methods.

4. Reactor development. This program includes the development of reliable and economic nuclear power plants for central station application and the development of power and propulsion reactors and reactor systems for a variety of military and space applications, together with research and development on advanced reactor systems, nuclear safety, and general reactor technology. The costs by major category are (in thousands of dollars):

The civilian power reactor program establishes a foundation of technical knowledge through a program of research and development on promising reactor concepts, including those with water desalting applications; design, fabrication, and operation of power reactor experiments; development and testing of experimental reactors; and development of conceptual designs for prototype powerplants.

Costs of $33.8 million will be incurred for the cooperative power reactor demonstration program in which AEC provides financial aid in development and construction of full-scale power reactors built by private utilities and public power bodies. public power bodies. This aid provides a basis for a privately financed nuclear power industry. The 1966 estimates include costs of $22 million for proposed new cooperative arrangements for a high-temperature gas-cooled power reactor and a large seed-blanket reactor.

The Euratom program provides for research and development under a joint program with the European Atomic Energy Community, for which costs of $5.9 million will be incurred in 1966.

The merchant ship reactors program provides for the development of propulsion reactors for commercial ship application. In 1965 the NS Savannah was turned over to the Maritime Administration for licensed operation.

The Army power reactors program provides for the development of portable and mobile reactor systems to meet military needs for powerplants for use at remote locations and for unique military purposes. Effort will continue in 1966 on the development of mobile nuclear powerplants for field use and on improvements to portable reactors for central power use at remote locations to provide more efficient, economical, and safe plants.

The naval propulsion reactors program, carried out with the Department of Defense, will be continued in 1966 to provide for the development of propulsion reactors for submarine and surface combatant ships.

The rocket propulsion reactors program (Project Rover) is carried out in cooperation with the National Aeronautics and Space Administration to develop nuclear rocket engines for space application. The program of ground-based research, engineering, and testing will continue.

The missile propulsion reactors program (Project Pluto) will be terminated in 1965 due to the absence of Department of Defense needs.

The satellite and small power sources program (Project SNAP) is carried out in cooperation with the Department of Defense, the National Aeronautics and Space Administration, and other Government agencies, to develop nuclear reactors and small power sources for satellites and other special purpose applications. Development of reactor power systems for possible application to large communication satellites, reconnaissance systems, and space probes will be continued.

To provide broad support for developmental reactor projects, AEC conducts research in general reactor technology, which includes general research and development on materials, components, moderators, control techcontrol techniques, fuel elements, spent fuels reprocessing and waste processing.

The advanced reactor systems research and development program is devoted to the development and testing of experimental reactors and research and development on promising advanced reactor concepts.

In its nuclear safety program, AEC conducts investigations related to nuclear safety problems which have general application. The 1966 estimate provides for additional work on related engineering field tests on postulated safety problems and on aerospace safety.

The AEC also operates the National Reactor Testing Station in Idaho, including two test reactors which provide irradiation services for the AEC programs. The Advanced Test Reactor (ATR), when completed at Idaho during 1966, will contribute to these irradiation services.

The cost categories in the table above may be recapitulated to indicate approximately the relative efforts placed on central station civilian atomic power applications, space program applications, and all other applications. This comparison, exclusive of plant and capital equipment, is as follows (in thousands of dollars):

in prior years, phase into operation. Medium energy physics includes research investigations in the intermediate energy range (50 Mev-1,000 Mev) for the purpose of developing and improving knowledge of nuclear structure. The increase in low-energy physics is primarily due to the operation of research tools acquired in prior years. Increased work is planned in mathematics and computerrelated techniques. Chemistry and metallurgical research are aimed at advancing basic knowledge in these fields of science and developing such knowledge for practical operations of the atomic energy program. Controlled thermonuclear research is directed toward ultimate production of power from the controlled fusion of heavy hydrogen nuclei.

Approximately 75% of the physical research program is conducted at 15 laboratories and installations owned by or operated for the Commission, and the remainder, comprising approximately 600 research projects, is supported in more than 150 universities, colleges, institutes and independent laboratories.

6. Biology and medicine.-Research is conducted on the effects of radiation on living things. It includes investigations of the biological effects of radioactivity in the body and the development of methods for minimizing exposure to radioactive materials of all kinds and for minimizing and protecting against the injurious effects of radiation. Support is given to the development of methods of utilizing radioactive materials for human welfare and for the diagnosis, treatment, and understanding of human diseases, such as cancer. Evaluation of the significance of human exposure to radioactivity from all sources is given special emphasis. Studies being carried out include the measurement of radioactivity (including fallout) in the atmosphere, soils, fresh waters, oceans, and biosphere proper. Research provides the basis for establishment of standards to insure that AEC activities are conducted with safety. This program recognizes the needs and responsibilities of other agencies of the Government conducting programs in biomedical research. Close relationships have been continued with such agencies as the Department of Health, Education, and Welfare, National Aeronautics and Space Administration, Department of Defense, and the U.S. Weather Bureau.

The major portion of the research is carried on at 18 laboratories which are owned by or operated for the Commission, and the remainder, comprising approximately 650 off-site research projects, is supported in more than 230 universities, colleges, hospitals and independent laboratories. The program includes the operation of several facilities in the United States devoted to cancer research and, through the National Academy of Sciences, in Japan for the determination of long-term effects of atomic bomb radiation on the affected population.

7. Training, education, and information.-This activity includes conduct of specialized courses; granting of graduate and postdoctoral fellowships; assistance to colleges and universities, operation of the Puerto Rico Nuclear Center; and dissemination of technical information, including participation in international conferences and exhibits on nuclear science and technology.

Under the fellowship program in 1966, approximately 317 college fellowships, compared to 276 in 1965 and 228 in 1964, will be offered for graduate studies in nuclear science and engineering. In 1966, 102 fellowships will be offered in the fields of radiological physics, industrial hygiene and industrial medicine, which compares to 91 fellowships in these fields in 1965 and 80 in 1964. The nuclear traineeship program is expected to include 92

General and special funds-Continued

OPERATING EXPENSES-Continued

participants in 1966, as compared to 50 participants in 1965. Assistance to schools to provide for educational programs in nuclear science and engineering will be continued. Grants are made to universities to help them acquire nuclear training equipment, teaching aids, demonstration apparatus, and special laboratory equipment. University summer and academic year courses in radiobiology are made available to high school and university science teachers. Special training in the nuclear aspects of the engineering, life, and physical sciences for university faculty members is provided.

In order to assist the States in the implementation of Public Law 86-373, approved September 23, 1959 (which authorizes the Commission to transfer certain regulatory functions to the States and also authorizes related training activities), training courses and on-the-job orientation are conducted in radiation safety, radiological health protection, waste disposal, etc., for State and local government employees. No tuition charges are made for these

courses.

To broaden the dissemination of information on matters relating to atomic energy, AEC provides technical information services, maintains libraries, performs translation services, operates domestic traveling atomic energy exhibits, participates in and supports selected international conferences and presents international nuclear energy exhibits.

8. Civilian applications of: Isotopes. This program of: Isotopes. This program provides the new technology necessary for developing uses of radioisotopes and high level radiation. Continuing research is done to develop economic uses of fission product wastes arising from nuclear reactor operation. Effort is also directed to development of nuclear technology for solution of problems in meteorology, seismology, control of environmental pollution, water resources development, and food pasteurization. An increasingly important area is the development of isotopic power and heat sources for space and terrestrial applications. To the maximum extent possible, the research and development work supported under this program is designed so as to promote, encourage and utilize industrial cooperation in furthering the beneficial uses of ionizing radiation.

Nuclear explosives.-This program (Plowshare) provides for the investigation and development of peaceful uses for nuclear explosives, as well as development of such explosives. Current emphasis is on the development of explosives and technology for nuclear excavation. In addition to research work and work with industry on contained underground applications, one full scale cratering experiment is planned for 1966 as well as continuation of promising work on explosives capable of producing heavy elements.

9. Communities.-Although legislation has been enacted to terminate Government ownership of the town of Los Alamos, N. Mex., over a period of the next few years, the AEC will continue to operate the community through 1966. The program estimate of $8.9 million includes $6.5

million for the Los Alamos community of which $75 thousand is for assistance to the hospital and $6.4 million is for operation of the town. The remaining $2.4 million is for assistance payments to the former Atomic Energy Commission communities of Oak Ridge, Tenn., and Richland, Wash., in accordance with the Atomic Energy Community Act of 1955, as amended. Operating revenues at Los Alamos (budgeted under revenues applied) are estimated at $5.1 million.

10. Program direction and administration.-This program includes the salaries and other costs for employees of the Federal Government engaged in executive direction, general management, and technical supervision of the atomic energy program; the negotiation and administration of contracts; establishment and enforcement of regulations for civilian uses of atomic energy; and other related administrative activities. Employees under this program are located in the Washington headquarters and in field offices. The 1966 increase of $1.4 million is to meet the cost of 5,540 employees, which is 71 employees over the June 30, 1965 end strength of 5,469 employees.

11. Security investigations.-The Atomic Energy Act of 1954 requires background investigations of those persons proposed for access to restricted data of the atomic energy program. The number of full background investigations to be requested in 1966 is estimated at 15,826 compared with 18,136 for 1965 and 17,221 for 1964.

12. Cost of work for others.-In furthering the objectives of the Atomic Energy Act of 1954 concerning utilization of atomic energy for peaceful purposes, AEC furnishes materials and services, apart from those which it provides normally for its own basic programs, to industrial organizations and other private parties. Costs for these are incurred only upon the request of others. Charges made for such products and services are reflected in the budget under receipts and reimbursements from non-Federal sources (revenues applied) and are applied as a source of funds, thereby reducing the amount of appropriations required. The items included are (in thousands of dollars):