FIGURE 2-1 History of funding for coal R&D under DOE's Office of Fossil Energy R&D budget. Sources: DOE budget archives; DOE (1994a). Data shown in Figure 2-1 for FY 1976 through FY 1994 represent congressional appropriations for coal-related FE R&D in current dollars. The values shown do not include any adjustments, such as supplementals, rescissions, reprogrammings, etc., that took place after enactment of the appropriations bills. The FY 1995 number shown is the congressional budget request in current dollars. Budget data for FY 1976 through FY 1994 by specific program area are given in Appendix C.

sharp decline in the world petroleum price in 1986 substantially decreased the economic attractiveness of coal-derived petroleum substitutes and the perceived need for R&D in this direction.

However, sustained interest in coal-based power generation technologies led to congressional funding of DOE's CCT program, starting in FY 1986. This program has constituted a major effort outside the traditional coal R&D projects undertaken by DOE and its predecessor organizations, and CCT funding is therefore not included in Figure 2-1. The CCT program has emphasized the need for demonstration and commercial deployment of environmentally responsive, economically competitive technologies and is based on cost sharing between the private sector and DOE, with the former contributing at least 50 percent of total demonstration cost.

During the Bush administration, the National Energy Strategy report was published, providing an overall administration strategy for energy policy (DOE, 1991). A fundamental tenet of this strategy was to continue reliance on market forces wherever possible by removing any barriers to efficient market operation. Emphasis was placed on improving energy efficiency and increasing production



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