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Attachment A
Statement of Task


Project Scope:

The Phase 2 activity follows the completion of Phase 1, which resulted in the issuance of two reports on methodology for estimating prospective benefits and evaluating energy R&D programs at DOE. These reports [Energy Research at DOE: Was It Worth It?, and Prospective Evaluation of Applied Energy Research and Development at DOE: A First Look Forward] are posted in the project record with project identification number BEES-J-03-01-A in the Current Projects System.

At least three issues will require attention as part of the Phase 2 Task. These issues include: (a) further improving the estimation of the value of environmental benefits (e.g., reduced emissions), (b) further improving the estimation of the value of security benefits (e.g., reducing oil imports or ensuring more reliable electricity supplies), and (c) determining how to estimate the overall benefits of the options under a variety of scenarios. The first two issues involve the public good rather than direct economic benefits. The committee will build on the foundation of work from Phase 1 and the body of literature that exists to determine appropriate values for these factors. The committee might commission white papers defining the state of knowledge and suggesting how the methodology could incorporate these estimates. For (c), options evaluation, the committee will consider the extent to which an analytical foundation is appropriate, building on the Phase 1 work and incorporating the full range of benefits for representative scenarios. In addition, the committee will consider mechanisms for quantifying knowledge benefits and include them as appropriate in the overall evaluation. The committee will also provide a peer review of how DOE is evaluating prospective benefits of various Energy Efficiency (EE) and Fossil Energy (FE) programs/projects. As in Phase 1, several panels will be separately appointed to assist the committee in Phase 2.

A workshop will be held early in Phase 2 to discuss the Phase 1 reports and methodology, following which the committee will write a letter report that will set the stage for the work to be accomplished in Phase 2. A final report will be issued at the conclusion of Phase 2, about the end of April 2006. The panels will write panel reports documenting the results of the analyses of the prospective benefits of the various programs/projects in EE and FE chosen by the committee to evaluate. These panel reports may be issued separately or incorporated into the Phase 2 final report.

The project is sponsored by the U.S. Department of Energy.

The approximate starting date for this project is March 15, 2005.

Project Duration: 14 months

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