Number range CHAPTER**Performance Evaluation**

**of the**

**Midwest Research Institute**

**for the**

**Management and Operation**

**of the**

**National Renewable Energy Laboratory**

October 1 2004 through September 30, 2005

Performance Period

DOE Contract No. DE-AC36-99GO10337

Prepared

by the

Office of Energy Efficiency and Renewable Energy's

Performance Evaluation Board

December 13, 2005

1.  **Science and Technology --** MRI will deliver high quality
    scientific and technological outcomes that advance DOE priorities
    and Program Objectives.

NREL continues to produce outstanding science and technology across all
program areas in fulfillment of the Office of Energy Efficiency and
Renewable Energy's (EERE) expectations. NREL's management of its science
and technology programs is outstanding, and NREL management and research
staff continues to be recognized for business and scientific leadership
by peer organizations.

This Critical Outcome is rated "Outstanding".

1.  *Demonstrate the quality of scientific and technological outcomes.*

*Significant Achievements:*

-   The NREL photovoltaics (PV) program shared an R&D 100 Award with
    Sinton Consulting, Inc. for a quasi steady-state photoconductance
    silicon evaluation. The system uses a radio frequency (RF) method to
    allow the detection and sorting of bulk silicon material with poor
    minority carrier lifetime ---material that is not suitable for
    producing solar cells with acceptable efficiency. This sorting
    approach will help streamline cell manufacturing.

-   The NREL photovoltaics program supported research and development in
    industry that achieved two JOULE milestones in 2005: (i) commercial
    crystalline silicon module with a 13.5 percent conversion
    efficiency, and (ii) commercial-production-compatible thin-film
    module with an 11 percent conversion efficiency. These higher
    efficiencies will lower the lifetime cost of PV systems.

-   NREL was instrumental in helping industry develop a new trough solar
    concentrator that is significantly lower in cost yet increases the
    performance relative to existing concentrators. NREL was
    instrumental in its design, analysis, testing, and optical
    characterization. This concentrator will be a major part of the 64
    MW project about to begin in Nevada, the largest solar plant built
    since 1990. Industry has emphasized NREL's outstanding contribution
    to the development of this new concentrator.

-   NREL provided outstanding analytical support to the National
    Association of Home Builders Research Center in estimating the
    national energy impact of zero energy homes by 2050. This study
    showed the dramatic impact that reaching the zero energy home goal
    of can have on energy consumption within the residential sector.

-   NREL staff received an award for outstanding paper published in the
    ASME Journal of Solar Energy Engineering, entitled "Tip Speed Ratio
    Influences on Rotationally Augmented Boundary Layer Topology and
    Aerodynamic Force Generation."

-   The NREL System Integration team, including Resource Assessment
    staff members, subcontractors and participating staff at the Oak
    Ridge National Laboratory (ORNL) and the Lawrence Berkeley National
    Laboratory (LBNL), continue to develop new analytical methods and
    assist in their application to increasingly complex wind energy
    integration questions. The tools, data and expertise provided by the
    NWTC team have been involved in virtually every major utility grid
    integration study over the planning period. Significant partners
    include the California Energy Commission and CaISO, the Minnesota
    Department of Commerce, the Western Area Power Administration, New
    York State Energy Research and Development Administration, Public
    Service of Colorado, the Rocky Mountains Area Transmission study,
    Seams Steering Group for the Western Interconnection (SSG-WI), and
    the Western governor's Clean Energy Task Force.

-   NREL, which provides technical support for DOE/EERE/BT Building
    America research, consolidated the research results of the Building
    America consortia into two Technical Progress Research Reports. This
    compilation and validation of BA research successfully demonstrated
    the proof of concept, to OMB that the stated 2005 Joules requirement
    had been met in two climate zones for community scale housing
    developments at the 30 percent whole house energy savings level.

*Notable Achievements:*

-   NREL staff achieved 16.9 percent efficiency for an amorphous
    silicon/crystalline silicon heterojunction cell on an n-type
    substrate (a world record). Global Solar, Inc. (a participant in the
    Thin-Film Partnership) achieved 10.2 percent efficiency for a large
    copper-indium-gallium diselenide (CIGS) power module on flexible
    stainless steel substrate. Boeing-Spectrolab (a participant in the
    High Performance Project) achieved approximately 39 percent
    efficiency for a monolithic GaInP/GaInAs/Ge triple-junction
    concentrator cell under 236 suns concentration.

-   NREL demonstrated a gallium phosphide nitride (top cell) on silicon
    (bottom cell) tandem device with enhanced corrosion resistance and
    suitability for water splitting for hydrogen production. This is an
    important step in the effort to develop a large-scale approach to
    the production of hydrogen through photovoltaics.

-   NREL achieved the first identification of the charge state defect
    associated with the well-known light-induced metastability in
    boron-doped silicon solar cells. This is important, in so far as
    boron-doped silicon ingot-based wafers account for over 80% of the
    worldwide production of solar cells.

-   NREL developed a new approach for determining the performance of
    trough receivers using infrared video cameras. This approach enables
    several thousand receivers a day to be evaluated and will thus lead
    to improved performance of trough power plants.

-   NREL was very responsive in providing underlying research activities
    in support of the Solar Heating and Lighting sub-program, such as
    evaluating the SRCC test protocol for nighttime degradation of
    collector performance. This was especially important in meeting a
    quarterly PART milestone. NREL has continued to manage and supervise
    the two industrial teams developing low-cost polymer solar water
    heaters to the point of having one team go through the SRCC testing
    and certification process, with the certification expected soon.

-   NWTC staff continued efforts that enable simulation of wind plant in
    utility operations, a key component to allow exploration of
    operating strategies and changes in utility plant operations using
    industry standard equipment. A follow on effort in early 2006 will
    focus on SMUD's 20 percent wind study.

-   NREL convened a meeting of critical domestic and international
    stakeholders in offshore structural dynamics code development. This
    activity is key to development of models that will allow design and
    development of offshore wind turbines and establishing U.S.
    leadership in deepwater offshore dynamic analysis (IEA Offshore Code
    Comparison Collaborative (OC3), Trondheim, Norway).

-   Fifteen NREL hydrogen projects were reviewed at DOE's 2005 Annual
    Review Meeting in May 2005. The reviewers' scores for the NREL
    projects that were reviewed are comparable or slightly higher than
    the overall Hydrogen Program project scores.

-   NREL's hydrogen storage team received the Ribbon Award (second best
    paper) at the 2004 Fall Meeting of the Materials Research Society.

-   NREL made twelve invited presentations and keynote addresses on
    renewable hydrogen and hydrogen storage at meetings.

-   Margaret Mann was awarded the 2005 DOE Hydrogen Program R&D Award
    for Outstanding Achievement in leading a team that developed the
    hydrogen production cost model known as H2A.

-   NREL's hydrogen storage team received two best poster awards at the
    2004 Fall Meeting of the Materials Research Society.

-   NREL and BNL continue to improve the value of polyphenylene sulfide
    (PPS) coatings for use in geothermal applications. A new test of
    PPS-coated pipeline components was started at one of the most
    severe, and also one of the most productive, geothermal environments
    in the U.S.: Cal Energy's Salton Sea operations. Six months after
    installation, the coating is showing excellent performance.
    Unprecedented long-term tests (up to three years) of PPS-lined
    carbon steel heat exchanger tubing have been achieved at the Mammoth
    Lakes binary geothermal power plant in northern California.
    Long-term tests have been important to industry partners to prove
    the viability of coated geothermal equipment. This coating, which
    has been commercialized by Curran and Sons, has the potential to
    significantly reduce the investment and the O&M costs in geothermal
    power plants and in the chemical, refining and conventional power
    industries.

-   NREL and the National Biodiesel Board signed a three year,
    Cooperative Research and Development Agreement (CRADA) to
    investigate the effects of biodiesel blends on advanced engine fuel
    systems and on emission control systems, including exhaust
    catalysts. The study will employ the engine and chassis dynamometer
    testing facilities of NREL's ReFUEL Laboratory.

-   The recently-signed CRADA between NREL and Oshkosh Truck Corporation
    will use NREL\'s unique expertise, including Robust Design and
    Advanced Computer Aided Engineering (CAE), to overcome technical
    hurdles in implementing advanced heavy vehicle technology that meet
    performance requirements while improving fuel efficiency. Under this
    CRADA, NREL will use its unique expertise, developed under DOE's
    FreedomCAR program, to help Oshkosh overcome heavy vehicle technical
    hurdles, improve fuel efficiency, and reduce petroleum consumption.

-   NREL upgraded instrumentation and techniques for measuring exhaust
    emissions from diesel trucks to evaluate the effect of various fuels
    on toxic component emissions. The techniques are capable of reaching
    the state-of-the-art sensitivity to sub-ppb levels for individual
    hydrocarbon species, which is useful for development of future
    diesel engines.

-   NREL continued with its electrochromic window durability work to
    evaluate the performance of a range of dynamic prototypes. Within
    tighter financial constraints, NREL was able to complete most of the
    testing required for prototypes being pursued by the R&D technology
    development program. NREL clearly documented key results, such as
    the poor performance of suspended particle display products and good
    performance of inorganic devices.

*Significant Deficiencies:* None.

*Notable Deficiencies:* None.

*Items of Program Interest or Concern for the Next Performance
Period(s):* None.

*1.2 Demonstrate excellence in program planning and management,
producing S&T accomplishments that advance DOE and program objectives.*

*Significant Achievements:*

-   NREL staff who have taken the lead in developing the Solar Advisory
    Model and the supporting the Systems Driven Approach (SDA) analyses
    have done an outstanding job in bringing this management tool to
    fruition and use in developing the Solar Multi-Year Program Plan for
    FY 2007-2011.

-   The NREL solar program was highly instrumental in the development of
    the Solar Energy Technologies Multiyear Program Plan FY 2007
    -- 2011. This MYPP was the first Solar Energy Technologies Program
    MYPP that incorporated a rigorous SDA, based on technology
    performance and costs computer modeling. This document enables an
    orderly and predictive development of cost-effective solar
    technology, which is particularly valuable in an era of rising costs
    for petroleum and natural gas.

-   In close collaboration with the DOE Solar staff NREL helped to
    develop a technical white paper that defined the (i) market specific
    targets for levelized PV energy costs and installed system
    price; (ii) the cost reductions required by major PV system cost
    categories; and (iii) detailed cost breakdowns and projections for
    each PV technology. NREL's efforts were critical to establishing the
    PV planning targets for the Solar Energy technologies Program.

-   NREL staff continued critical work in partnership with Clipper
    Windpower to develop the advanced 2.5 MW prototype low wind speed
    turbine (Class 4 sites). NWTC activities focused on advanced drive
    systems, materials, and controls.

-   NREL staff continued efforts to develop advanced small wind turbines
    for rural small businesses and residential uses. Working with key
    industry partner Southwest Windpower, NREL is tested a prototype 1.8
    kW wind turbine featuring innovations in turbine design and
    manufacturing technologies. Success will result in substantial
    improvements in cost effectiveness, ease of installation and use,
    and low noise operation.

-   NWTC staff continues to be the focal point of the Nation's grid
    system integration effort. NREL's Team Leader was integral in
    planning the GSI research program based on his participation in
    Utility Wind Interest Group activities, National Wind Coordinating
    Committee activities and liaison with stakeholder groups such as
    regional transmission operators, electric utilities, professional
    societies and individual researchers. NREL's Team Leader interacts
    on a daily basis with his headquarters counter part to balance
    priorities across a resource limited but demand driven program. The
    second wind plant monitoring data archive, collected by a
    cooperative effort between wind plant developers and NREL has been
    the basis for every system integration study performed to date in
    the United States. During this period, an analysis of the
    Wyoming-Denver constrained interface performed by the Program was
    held up as an example of the potential for unused physical transfer
    capability that is being replicated in several regions of the
    country, with the potential to allow wind plant developers to add
    more capacity to existing transmission lines.

-   NREL helped establish the DOE Carbon-based Hydrogen Storage Center
    of Excellence by coordinating 14 collaborative research efforts at
    12 different institutions. NREL coordinates the effort by
    facilitating information and physical sample exchange between the
    partners, by insuring good communication via teleconferences and
    meetings, and by guiding work plans to ensure that research
    activities are aligned with DOE's goals.

-   To identify materials that store and release hydrogen easily, NREL
    designed and developed a high-throughput
    temperature-programmed-desorption apparatus to determine the
    hydrogen desorption properties of samples. The apparatus should
    measure at least six identical samples within 5% accuracy in a
    twenty-four hour period.

-   From theoretical computations, NREL identified several
    nanostructured materials that may have the potential to meet DOE's
    FY 2010 system storage target of 6 wt.%. The predictions show
    material capacities of over 8 wt.% and have stimulated new
    experimental investigations.

-   NREL demonstrated a new photovoltaic/photoelectrochemistry
    water-splitting tandem cell based on a silicon bottom cell and a
    gallium phosphide nitride (GaPN) top cell that is significantly
    lower in cost than NREL's previous system. The GaPN has shown
    enhanced corrosion resistance over previous materials and can reach
    the DOE 2010 goal of 1000 hours of operation.

-   NREL completed two versions of the H2A Delivery Components model and
    prepared a detailed user's guide to help guide future analysts. The
    Components model can calculate the cost contributions of a variety
    of different hydrogen delivery components.

-   NREL synthesized bacterial \[FeFe\]-Hydrogenases that are 100-200
    times more tolerant to O~2~ than algal hydrogenase. NREL's rationale
    to increase the O~2~ tolerance of \[FeFe\]-hydrogenases is based on
    computational simulations of O~2~ and H~2~ gas diffusion through the
    CpI hydrogenase protein structure.

-   NREL demonstrated that the O~2~-tolerant bacterial hydrogenase from
    *Rubrivivax gelatinosus* CBS can produce H2 from water, in the
    light, when a cyanobacterial ferredoxin was added; the latter step
    eliminates the need to transfer the gene encoding the CBS
    ferredoxin. Minimizing the number of foreign genes transferred to
    the cyanobacterial host will increase the likelihood of success in
    constructing a cyanobacterial recombinant for sustained H~2~
    production from water.

-   Via microbial prospecting, NREL identified three strains of
    Clostridium thermocellum microbes that can ferment both the
    hemicellulose and lignocellulose fractions of corn stover biomass
    and produce H~2~. The hydrogen molar yield from lignocellulose
    fractions is comparable to that of glucose, which is more expensive
    and less abundant. The identification of cellulolytic microbes
    directly addresses DOE's feedstock cost barrier for fermentation and
    will enable this technology to be more economical in the long run.

-   NREL developed the Hydrogen from Off-Peak Electricity model to
    understand the system changes and resulting cost differences when
    using off-peak electricity to produce hydrogen via electrolysis.
    With this model, electricity-pricing data and hydrogen demand data
    can be quickly examined for the least-cost configuration for
    hydrogen production via electrolysis.

-   NREL demonstrated high proton conductivity in a composite heteropoly
    acid-hydrocarbon membrane. The conductivity (0.05 S/cm at 50%
    relative humidity) is very close to the DOE 2005 goal of 0.07 S/cm
    at room temperature.

-   NREL created 6 Fuel Cell Vehicle and Infrastructure Data Templates
    for DOE's Controlled Hydrogen Fleet and Infrastructure Demonstration
    and Validation Project and that are now benchmarks for other
    projects and countries. Additionally, other entities such as Canada
    used NREL's templates as the benchmark upon which they based their
    data collection requirements.

-   NREL created a computer program that automatically processes raw
    data (stack current/voltage degradation, on-road fuel economy, and
    on-road range) from fuel cell vehicles in DOE\'s "H2 Learning
    Demonstration" project. NREL also provided detailed data analysis
    results from one industry team back to the auto company that
    originated the data.

-   To complement the efforts in the light-duty Learning Demonstration
    Project, NREL is working with several manufacturers to collect
    additional potentially proprietary data on fuel cell buses. The data
    templates from the "H~2~ Learning Demonstration" project are used as
    a base for the heavy-vehicle templates.

-   NREL facilitated the establishment of the National Hydrogen and Fuel
    Cells Codes and Standards Coordinating Committee which has become
    the primary forum for effecting coordination between model code
    organizations and standard development organizations and
    coordinating US efforts with international standards and global
    technical regulation development activities.

-   NREL facilitated development of additional hydrogen safety
    requirements in three ICC Codes and three NFPA standards.

-   NREL has helped implement the national template for codes and
    standards through the management of subcontracts and by supporting
    coordination activities with codes and standards organizations and
    trade associations.

-   A senior NREL scientist was appointed by Colorado Governor Bill
    Owens to the Air Quality Control Commission to serve the state of
    Colorado.

-   NREL evaluated the performance, emissions, and fuel economy of a
    production hybrid bus developed by GMAllison, as well as a
    conventional baseline at the ReFUEL lab. By examining effects of
    both grade and auxiliary loads, the research breaks new ground in
    heavy-duty chassis testing science. Developing this expertise will
    lead to the creation of test protocols for heavy hybrid vehicles.
    These protocols do not exist today and have been a significant
    barrier to commercialization of these technologies. Establishing
    these protocols will allow increased market penetration of heavy
    hybrid vehicles.

-   A final report issued by NREL concluded that despite large decreases
    in emissions of hydrocarbons, carbon monoxide, and nitrogen oxides
    (NOx) on weekends in urban U.S. locations, there is little change,
    and in many cases, an increase in ambient ozone levels. This report
    is a resource to help city planners understand that mandated NOx
    reductions in U.S. ozone problem areas will not reduce ambient ozone
    levels and, in many locations, will make it worse.

-   NREL\'s timely responsiveness to requests from Building Technologies
    and Building America management is highly satisfactory.

*Notable Achievements:*

-   The NREL photovoltaics program continued its partnership and
    collaboration with the photovoltaics industry and university
    community. These efforts included: (i) fourteen new cost-shared
    subcontracts with U.S. industry under the Photovoltaic Manufacturing
    R&D and Thin-Film Partnership projects; and (ii) seven university
    awards under the University Research in Crystalline Silicon project.

-   NREL continues to work very well with Sandia on all aspects of the
    Concentrating Solar Power subprogram. The cooperation between the
    two labs could be a model for all other EERE programs. NREL and
    Sandia have turned the virtual lab concept (Sunlab) into reality.

-   During the period, NWTC staff participated in two FERC workshops on
    wind energy and participated substantially in organizing the March
    workshop in Denver. The outcome of these workshops was to better
    inform FERC Commissioners and staff on wind energy and when
    implemented would allow non-discriminatory treatment of wind power
    compared to conventional sources.

-   NWTC meteorologists planned and hosted a workshop on state of the
    art in wind plant forecasting that involved representatives of
    forecasting vendors, academics, wind developers and host electric
    power systems that established need cross communication and
    identified research priorities for the next five years.

-   NREL demonstrated increased, continuous reactor productivity in a
    chemostat mode in the presence of sulfate in the medium. The rates
    of H2 production on a reactor volume basis were 25 times higher than
    those obtained with suspended cultures using a two-stage chemostat
    system. The system ran efficiently for up to three months.

-   NREL completed a draft multi-year research and development (R&D)
    plan for renewable electrolysis integrated systems development and
    testing.  This R&D plan establishes a multi-year plan for research
    with renewable electrolysis at NREL.

-   Transparent polymer materials have been identified that meet key
    optical and lifetime requirements for use in large scale solar
    photobiological and photoelectrochemical hydrogen production from
    water.

-   NREL modified power electronics to interface a 10 kW wind turbine to
    5 kW electrolyzer and completed characterization of proton exchange
    membrane (PEM) electrolyzer with photovoltaic and wind input power
    directly to stack.  This accomplishment is leading to cost reduction
    for renewable electrolysis.

-   NREL carried out an analysis to assess quickly the cost to deliver
    ethanol for reforming at forecourt stations using a variety of
    supply chains (rail, truck and barge).

-   NREL evaluated US postal facilities and other federal facilities as
    partners for transition to hydrogen fueling by identifying their
    proximity to a proposed network of stations. These facilities are
    valuable because they are widespread across the US and are subject
    to Executive Orders requiring energy efficiency and the use of
    alternative transportation.

-   NREL used GIS based tools and the H2A analysis to develop supply
    curves at the intrastate, state, region, or national levels for the
    production and transportation of hydrogen. Tradeoffs between central
    and distributed production, economies of scale, and distance between
    continental US cities are considered.

-   NREL completed three internal quarterly validation assessment
    reports analyzing data from DOE\'s Controlled H2 Fleet and
    Infrastructure Project including analysis of the first year's worth
    of vehicle and infrastructure data. The reports are not public, but
    are shared with DOE and will lead to publication of composite data
    products to publicize the technical progress of the project.

-   NREL worked with Fuel Cell Manufacturer Plug Power to apply advanced
    computer aided engineering techniques such as optimization,
    probabilistic design, and topology optimization to address specific
    fuel cell design hurdles. This work led to improved structural,
    thermal, and flow performance of fuel cell and autothermal reformer
    component designs.

-   NREL analyzed energy/power requirements for startup from
    sub-freezing temperatures; depending on the start-up approach, the
    energy requirements could be from 2 to 6 MJ. With the DOE target of
    30-second startup from --20°C, this translates to the need for 60 to
    200 kW power.

-   NREL developed a user-friendly computer model of geothermal power
    plant cycles that can be used to optimize the performance of
    existing cycles and to compare advanced cycle designs. The program
    allows rapid comparison of various innovative geothermal cycles so
    that the most promising candidates can be selected for further
    research and development. The energy conversion portion of
    geothermal processes is the most costly component of geothermal
    systems, so this tool will facilitate focused research in the
    conversion area.

*Significant Deficiencies:* None.

*Notable Deficiencies:* None.

*Items of Program Interest or Concern for the Next Performance
Period(s):*

-   Adoption of SDA for making technical and programmatic decisions is a
    high priority within the Solar Program. NREL will be assessed each
    evaluation period on its implementation and use of SDA and the Solar
    Advisor model in guiding technical decisions.

-   While the NREL solar program has submitted a detailed capital
    equipment plan for the period through 2015, there does not exist a
    staffing plan for even the next several years. Accordingly, NREL
    needs to develop a technical staffing plan for the S&TF for the
    years FY 2007 through FY 2009, which includes staffing scenarios for
    the cases of enhanced funding as well as decreased funding.

-   As DOE transitioned hydrogen analysis from model development and
    technoeconomic analysis to systems analysis, NREL did not have the
    capacity to respond to DOE's needs as rapidly as needed. NREL must
    increase its capacity for systems analysis and improve
    responsiveness to DOE's needs. NREL has a major milestone in
    September, 2006, with future funding implications in hydrogen
    storage (go/no go decision point based on achieving 6 wt. % hydrogen
    storage in single-wall carbon nanotubes). This milestone was already
    extended and further extensions will not be possible: It is critical
    that a detailed plan for meeting the milestone date be developed and
    provided to DOE early in the year. NREL management needs to be
    actively involved all aspects of work scheduling and conduct, and
    must review NREL's work before it is released to the DOE to
    eliminate inaccurate results and rework.

-   EERE requires that NREL analysis products be insightful across a
    wide programmatic range, that NREL be responsive to short turnaround
    deadlines and dependably produce credible analytic results. During
    the period, NREL\'s performance in this critical area was uneven,
    exhibiting performance ranging from outstanding to marginal across
    EERE\'s programs. Specifically, NREL missed deadlines for the
    completion of the H2A project, and significant rework was required
    for the Wind/Solar report and the Hydrogen Posture Plan. Analytical
    products prepared for the Geothermal program were substandard, while
    products prepared for the Solar program were outstanding. EERE
    expects NREL to improve the performance of its analysis competency
    across programs in the next performance period, commensurate with
    NREL's FFRDC responsibilities.

-   NREL delivered renewable energy and energy efficiency information to
    policy makers in several forums on Capitol Hill, providing DOE/EERE
    and NREL high visibility with hundreds of Congressional Members and
    staff, industry representatives, and government officials. The
    events showcased important DOE/EERE technologies and enhanced the
    national dialogue about energy options. NREL also exhibited its
    research at the 8th Annual U.S. House and Senate Renewable Energy
    and Energy Efficiency EXPO where EERE/NREL work was recognized
    publicly by several Members of Congress and government leaders who
    spoke at the event.

-   While NREL has been trying to establish a cost center for the
    testing of electrochromic devices, progress has been slow. DOE
    acknowledges that this activity will be challenging, but NREL needs
    to consider the formulation of a partnership with various testing or
    non-profit trade associations to begin to transition this activity
    to private industry.

-   Challenges are still to be faced in the coming year with assisting
    the Building America research teams into the new stage-gate
    analytical process and the necessary discipline involved.

*1.3 Transfer NREL-originated knowledge and technology.*

*Significant Achievements:*

-   As a result on NREL's research and development and successful
    support to the Thin-Film Partnerships, First Solar and UniSolar held
    groundbreaking ceremonies to increase their manufacturing capability
    of thin film photovoltaics by 50 and 25 MWP, respectively.

-   NREL completed testing the Clipper Windpower drive train, the GE SLE
    drive train, and initiated testing of the Northern Power Systems
    drivetrain using the NWTC Dynamometer. Dynamometer testing provides
    critical design information to the turbine manufacturers. Design
    issues that are identified can be fixed and retested prior to making
    the drive train available commercially.

-   Through a joint effort by the NREL and Germanischer Lloyd (GL) of
    Hamburg, Germany, the world's foremost certifying body for wind
    turbines, NREL's wind turbine design codes (FAST and ADAMS) were
    approved for calculating onshore wind turbine loads for design and
    certification. Certification is a requirement for commercial
    turbines to be insurable in power park applications.

-   NREL completed two rounds of testing of the TPI Composites 45-meter
    wind turbine blade at the IUF blade test facility. Both tests
    resulted in premature failures of the blade spar. Based on the test
    results, a completely new design was undertaken by the manufacturer
    prior to deployment in the field.

-   NREL's Systems Integration team leader was co-editor of the IEEE
    Power Engineering Society Power and Energy magazine entitled "Winds
    of Change: Issues in Utility Wind Integration". J. Charles Smith,
    executive director of the Utility Wind Integration Group was the
    lead editor of the issue that was mailed to 30,000 engineers
    world-wide.

-   NREL staff organized and hosted the 4^th^ Annual Wind Powering
    America State Summit, May 19, 2005. The Summit served as the premier
    program and technical review held in conjunction with the critical
    WPA state wind working groups.  The event featured a wide range of
    general and technical sessions on wind energy. Thirty-nine states
    were represented by more than 150 attendees from private, state and
    national organizations. The state-based WPA effort provides
    information about wind energy technology and its potential benefits
    to the stakeholder community.

-   NREL continues its Cooperative Research and Development Agreement
    (CRADA) with the University of Minnesota to test different matrices
    to immobilize algal cultures for subsequent application of sulfur
    deprivation to induce H~2~ production. This work will lead to cost
    reduction for photobiological production of hydrogen.

*Notable Achievements:*

-   NREL hosted several major photovoltaic technical exchange reviews,
    including (i) the 15^th^ Crystalline Silicon Technical Exchange in
    August 2005 in Vail, Colorado; and (ii) the International Review on
    Solar Concentrators in May 2005 in Scottsdale, Arizona. Both
    conferences were instrumental in exchanging information on the
    latest developments in each technical area.

-   NREL completed the acquisition of over 17,000 10-minute records of
    wind data collected by both a Low-Level Jet Tower data system and a
    Turbine data system. NREL is evaluating this data to determine
    whether the presence of the low-level jet does increase the turbine
    mechanical loads beyond reasonable operating conditions.

-   NREL provided valuable technical assistance and expertise to
    industry for addressing complex wind turbine system problems. For
    example, researchers from GE requested NREL assistance on conducting
    an aeroelastic stability analysis of their 40m swept-tip composite
    blades, new generation blades designed using the
    aeroelastic-tailoring concept.

-   NREL Filed Two Records of Invention for Fuel Cell Rapid Startup from
    subfreezing temperatures. NREL researchers proposed several ideas
    and filed two records of invention: 1) Alternating current heating
    of PEM fuel cells and 2) Efficient methods to rapid startup of PEM
    fuel cells from subfreezing temperatures.

-   NREL made the H~2~A Hydrogen Delivery Components model available to
    the hydrogen community. This model has been used by the Hydrogen
    Delivery Tech Team to develop R&D targets for the HFCIT Multi-Year
    RD&D plan.

-   NREL completed a techno-economic assessment of wind electrolysis
    systems for three system designs and locations with Xcel Energy. 
    This work confirmed feasibility of the DOE cost targets for
    long-term wind electrolysis and allowed Xcel Energy to proceed with
    co-funding the design, construction, and testing of a 100 kW wind
    turbine and 50 kW electrolyzer at NREL starting in FY 2006.

-   NREL conducted a comprehensive literature and patent search to
    identify fuel cell sub-freezing issues and potential solutions such
    as "Water removal", "keep-warm", and "thaw/heating" methods.

-   NREL developed and tested an enhanced heat exchanger fin design that
    can provide up to 17% more heat transfer than plain fins at the same
    fan power, while maintaining sufficient strength for commercial
    applications. While the geothermal emphasis is on circular fins,
    Super Radiator Coils, NREL's partner for flat plate fin, intends to
    take the flat plate product to the commercial market and has
    requested NREL permission to register the trade mark "T-Fin" in
    anticipation of product perfection and commercial production. The
    major applications are in the HVAC industry and for other
    applications such as intercoolers for gas turbines.

-   As a result of the Peer Review of windows R&D that showed the super
    capacitor work may not be well suited for a full, robust, large
    dynamic range device, NREL was able to work with a private company
    to develop a strategy for the possible incorporation into its
    commercialized product. While this activity has not been fully
    developed yet, NREL demonstrated the ability to adapt its
    fundamental science to pursue technology development.

*Significant Deficiencies:* None.

*Notable Deficiencies:* None.

*Items of Program Interest or Concern for the Next Performance
Period(s):* None.

**2.0 Leadership** -- MRI will lead NREL as an FFRDC to create
opportunities that significantly advance the EERE mission while
enhancing NREL's role as a recognized national and international asset.

FY05 was a year of profound change and new opportunity at NREL. During
the performance period MRI/Battelle concluded its successful national
search for a new laboratory and, in January 2005, MRI/Battelle named Dr.
Dan Arvizu as NREL's director. Since January Dr. Arvizu and his
management team have moved quickly to understand EERE's strategic
direction and programmatic goals; assess the needs of EERE's program
managers for technical, assessment, and strategic counsel; and to
reassess NREL's capacity to provide high value service to its EERE and
other clients. Dr. Arvizu's efforts led to the development and issuance
of a new strategic roadmap for NREL in May of 2005. The roadmap was
widely distributed and broadly accepted, and serves as the framework for
all NREL planning, investment decisions, and performance objectives.
Since its issuance, Dr. Arvizu has redefined NREL's value proposition to
increase NREL's value to EERE and its other clients, as well as to
accelerate NREL's drive to be the preeminent science and management
institution dedicated to improving the nation's energy security. EERE is
fully supportive of NREL's new direction under Dr. Arvizu's leadership.

NREL provided significant value to EERE as EERE's only sponsored
Federally Funded Research and Development Center (FFRDC). During the
period, NREL made substantial progress in its integration efforts,
providing EERE programs the integrated baselines, objective counsel, and
decision frameworks necessary to improve the program's ability to make
technical sound and expeditious decisions on issues with national
consequences. These efforts were done in the strictest of confidence to
ensure unbiased decision-making without regard to the impact on NREL's
research and development portfolio as required under NREL's FFRDC
mandate. DOE encourages NREL to continue to improve its capability in
this strategically important area.

MRI/Battelle continued to provide the corporate support necessary to
ensure NREL is well governed and to provide value to NREL's EERE and
other clients. In addition to selecting NREL's new director, the MRI
provided oversight of the Science and Technology Facility (STF)
construction project. Members of MRI's Board of Directors and Trustees
dedicated their expertise and time to ensure that the STF project
fulfills its mission expectation, on-time, within-scope, and at cost.
MRI led an exhaustive effort to examine NREL's laser safety operations,
providing for national expertise to assist NREL to improve its laser
operations. MRI provided the interim leadership to NREL's environment,
safety, and health organization providing time for NREL to conduct a
national search to fill this critically important position. MRI also
conducted extensive oversight of NREL's operations, including an
independent assessment NREL's cyber security, efforts that substantially
contributed to NREL's highly efficient, low cost, high integrity
business capability. Under Battelle's leadership, MRI/NREL and other
national laboratories quickly developed a decision-making framework to
assist DOE Executive Management to improve future budget decisions in
DOE's energy mission line.

This Critical Outcome is rated "Outstanding".

*2.1 Demonstrate leadership in developing new opportunities for NREL.*

*Significant Achievements:*

-   Under the leadership of the new director, NREL created a strategic
    roadmap that, when fully implemented, will sharpen NREL's focus on
    national goals and significantly increase the value of NREL to EERE.
    NREL's roadmap, reflecting the state of the nation's energy economy
    and our national energy challenges, has been widely disseminated and
    is the foundation upon which NREL's future budget requests,
    investments, and performance objectives will be based. DOE looks
    forward to working with the new director to quickly and fully
    implement his vision.

-   MRI/Battelle provided strong leadership during the period in a
    number of local and corporate areas, thereby leveraging EERE's
    investments and generating goodwill for EERE programs. These
    include:

    -   Partnership and Support of Other Federal Agencies.

        -   NREL significantly contributed to the Bureau of Land
            Management's (BLM) initiative to characterize federal lands
            for energy production by characterizing the potential for
            wind energy production on BLM lands. As a result, BLM
            received 140 applications for development of wind resources
            on federal lands.

        -   NREL provided technical assistant to the Department of
            Agriculture (DOA) in support of rural renewable and energy
            efficiency projects. DOA's initial \$67M in financial
            support for these projects was leveraged to nearly \$1B.

        -   NREL trained Department of Interior employees the deployment
            of off-shore wind turbines.

        -   NREL provided the Defense Advanced Research Projects Agency
            (DARPA) with a briefing on the real-time production of
            biofuels in a military environment.

    -   Partnership and Support of Regional Academic, Industry, and
        Other Organizations

        -   MRI/Battelle and the Gas Technology Institute were
            significant contributors to establishment of the Colorado
            Fuel Cell Center (CFFC) at the Colorado School of Mines.
            NREL will provide technical guidance and governance
            oversight of the CFFC, leveraging EERE knowledge and
            investments to accelerate accomplishment of program goals.

        -   NREL entered into a Cooperative Research and Development
            Agreement with the National Biodiesel Board to investigate
            the effects of biodiesel blends on advanced engine fuel and
            emission control systems at its ReFUEL laboratory.

        -   NREL entered into a long-term Work-for-Others agreement with
            Wal-Mart to study existing energy use in its stores in an
            effort to improve the energy efficiency of future stores.

        -   NREL was selected to develop an Advanced Power Electronic
            Interface Initiative with eh California Energy Commission, a
            initiative critical to the development and standardization
            of modularized "plug and play" components for grid
            interconnection of distributed energy resources.

        -   NREL, in concert with Sandia National Laboratories, is
            working with the telecommunications industry to evaluate and
            enhance the reliability of energy supplies at
            telecommunication facilities to mitigate potential natural
            disasters.

        -   NREL led a first-ever collaboration between western and
            national entities to begin to address the linkage of energy
            and water in the west, an issue critical to the western
            states.

        -   Through the use of Geographical Information System data,
            NREL has developed an increasingly sophisticated capability
            for determining the best locations for solar power plants
            throughout the western U.S. The maps produced from this
            analysis have been very effective in showing the immense
            solar resource available in the west. This capability has
            proved to be very valuable to the Western Governors'
            Association Solar Task Force.

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-   The NREL photovoltaics program achieved ISO 17025 accreditation for
    secondary module and primary reference cell calibration. This makes
    NREL one of only two laboratories in the world that hold these
    accreditations. This accreditation is important to the photovoltaics
    community that relies on NREL for credible and expert cell and
    module performance calibrations.

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-   NREL conducted a successful wind turbine drive train research needs
    workshop. Industry experts from gearing, bearing, lubrication,
    generator design, and power electronics disciplines discussed
    research needed to reach DOE LWST program goals. .

-   NREL led a two-day workshop to explore technology pathways for
    installing and operating large offshore wind power facilities in
    water depths greater than current technologies allow. The findings
    and conclusions from this meeting will provide a basis for defining
    near-term priorities and a U.S. R&D agenda.

-   Through the efforts of NREL's Team Lead, NREL has been effective in
    developing an analytic capability in the analysis of wind/hydro
    integration and the development and approval of an IEA annex along
    that line and the selection of an operating agent. In addition,
    NREL's Team Lead has been selected to represent the United States at
    an additional annex under development of grid operations under high
    penetration.

-   NREL's Technology Manager participated, by invitation, as one of
    four international guests in the Australian Government's
    International Workshop on Hydrogen Technologies for a Sustainable
    Future, Melbourne, March 2005. NREL's Technology Manager
    participated in the RAND Forum on Hydrogen Technology and Policy,
    Santa Monica, December 2004.

-   NREL provided technical leadership to develop consensus
    international hydrogen fuel quality specifications for PEM fuel cell
    vehicles. NREL led a North American team of experts from industry
    and academia at meetings of ISO TC197 Working Group 12.

*Notable Achievements:*

-   Dr. L. Kazmerski was elected a member of the National Academy of
    Engineering, and Dr. T. Coutts received the prestigious William R.
    Cherry Award, events that further indicate the scientific excellence
    of NREL's photovoltaics program technical leadership.

-   NREL and the DOE Wind Program are pursuing scientific and technical
    collaboration with the Department of Interior Minerals Management
    Service (MMS) in areas related to offshore renewable energy
    resources on the U.S. Outer Continental Shelf (OCS).

-   NREL hosted the first Wind Turbine Aeroacoustics Workshop at NASA
    Langely in Hampton, Virginia. The workshop drew over 40
    aeroacoustics experts from government agencies (NASA, NREL and
    Sandia), private industry (GE and Boeing), and numerous academic
    institutions.

-   NREL provided technical leadership by conducting a roadmap workshop
    and in drafting a roadmap for manufacturing R&D for the hydrogen
    economy. Battelle provided a loaned executive to NREL to examine
    options for structuring a public-private partnership for
    manufacturing R&D.

-   NREL's storage team organized or led six hydrogen storage
    sessions/workshops. This leadership is providing new opportunities
    for NREL to collaborate with leading institutions on hydrogen
    storage R&D.

-   NREL's Technology Manager for Hydrogen and Fuel Cells continued
    advancement of renewable energy technologies by directing NREL's
    collaboration with the State of Hawaii under a Memorandum of
    Understanding between NREL and the State.

-   NREL, along with the Colorado School of Mines, Gas Technology
    Institute, and Versa Power Systems, founded the Colorado Fuel Cell
    Center (CFCC). The CFCC will receive \$2 million in state funding
    and will conduct sate-of-the-art research on fuel cell systems.
    Results will benefit DOE's program.

*Significant Deficiencies:* None.

*Notable Deficiencies:* None.

*Items of Program Interest or Concern for the Next Performance
Period(s):*

-   EERE is fully supportive of MRI/Battelle's stated objective of
    "establishing NREL as the pre-eminent institution for advancing
    innovative energy technologies..." to achieve the nation's twin
    goals of energy and economic security. Traditional government
    business models are changing, and NREL must improve its ability to
    anticipate, create, and respond to future opportunity in a
    competitive environment. Achieving MRI/Battelle's objective requires
    intellectual innovation, institutional flexibility, and the
    leveraging of assets though strategic partnerships. EERE expects
    MRI/Battelle to make substantial progress in establishing NREL as
    EERE's pre-eminent research, development, and technology management
    institution during the next performance period.

*2.2 Provide leadership in establishing, implementing, and expanding the
systems integration function for EERE and NREL.*

*Significant Achievements:*

-   MRI/Battelle provided objective counsel and advice to DOE in support
    of DOE's mission. Significant achievements included:

    -   Under the leadership of Battelle, MRI/NREL and other national
        laboratories collaborated to prepare a consistent analytical
        framework to evaluate DOE's energy-related research and
        development portfolio. The results of this effort were used by
        DOE Executive Management to help shape future DOE investments.

    -   NREL provided substantial integration leadership for both the
        Hydrogen and Biomass programs. During the period, substantial
        progress on the integrated baseline and systems analysis
        challenges for the Hydrogen program was accomplished, the
        Macro-System Model was refined, and a configuration
        management/change control process was initiated for the
        Program's Multi-Year Plan. Similarly, NREL's integration efforts
        for the Biomass program led to identification of new pathways
        for biorefinery deployment, an integrated baseline, and a
        framework to guide future analysis activities.

-   The NREL Solar Program has given outstanding support to the Solar
    Energy Technologies Program in implementing the CPS and using the
    CPS database for preparing Annual Operating Plans, as well as budget
    and milestones. Extensive trials were conducted that resulted in
    major improvements to the CPS. All NREL Solar Program projects are
    now an integral part of the Solar Energy Technologies Program's CPS
    data base and management tool.

-   NREL, working closely with Sandia, continued the development of the
    Solar Advisor Model. The software enables the comparison of cost and
    performance parameters of solar systems across a range of
    technologies. It is an integral part of the Systems Driven Approach
    on which the Solar Energy Technologies Program is managed. During
    the reporting period, it was used to support analysis for the Solar
    Programs 2007-2011 Multiyear Technical Plan.

-   NREL Systems Integration developed and has helped manage the process
    by which the DOE Hydrogen Program is producing its budget estimates
    out through FY 2015. This is a critical effort for future program
    planning and justification.

-   The DOE Hydrogen Program's FY 2005 Annual Program Review was the
    largest and most complex ever held. Conducted by NREL Systems
    Integration, this event used approximately 150 peer reviewers to
    evaluate 200 R&D, demonstration, and analysis projects. The results
    were used by the DOE technology development managers to make project
    assessments and funding decisions.

-   During FY 2005, NREL Systems Integration made significant strides in
    staffing, filling all but one of its positions in support of the DOE
    Hydrogen Program. In addition, the staff built out and occupied a
    separate office area at NREL to support the firewall from NREL R&D
    activities.

*Notable Achievements:*

-   NREL Systems Integration implemented a configuration management and
    change control process to help the DOE Hydrogen Program manage one
    of its most important planning documents -- the Multi-Year RD&D
    Plan. The SI staff conducted the first Change Control Board Meetings
    in FY 2005, initiating a process that will ensure a consistent and
    up-to-date plan for the program.

-   In support of the DOE Hydrogen Program's Technology Analyst, NREL
    Systems Integration helped develop the Systems Analysis Plan and the
    Analysis Portfolio. The latter lays out a prioritized plan for
    analysis and modeling projects for the current and the next two
    fiscal years, supporting key Systems Analysis efforts for the
    program.

-   In FY 2005, NREL Systems Integration initiated development of the
    Macro-System Model for the DOE Hydrogen Program. After conducting a
    comprehensive workshop to produce the model requirements, a modeling
    integration infrastructure was chosen and subcontracts established
    to begin hardware and software development.

-   NREL Systems Integration authored several portions of the DOE
    Hydrogen Program's new Program Management and Operations Plan and
    contributed Systems Integration sections and plans into the Posture
    Plan and the Multi-Year RD&D Plan.

-   NREL Systems Integration developed and maintains a new DOE Hydrogen
    Program website which pulls together all the DOE offices that
    contribute to the Department's efforts under the President's
    Hydrogen Fuel Initiative. This important tool provides a "one stop
    shop" for all stakeholders to access information about the program.

*Significant Deficiencies:* None.

*Notable Deficiencies:* None.

*Items of Program Interest or Concern for the Next Performance
Period(s):* None.

*2.3 Negotiate in good faith with DOE to deliver a new research support
facility complex at the STM site.*

*Significant Achievements:* None.

*Notable Achievements:* None.

*Significant Deficiencies:* None.

*Notable Deficiencies:* None.

*Items of Program Interest or Concern for the Next Performance
Period(s):*

-   MRI/NREL must quickly develop its vision and implementation strategy
    for the Research Support Facility(s), and begin implementation of
    the strategy. Over the next six months, MRI/NREL must conduct a
    nationally visible competition for an Architect/Engineer to produce
    a high-performance building design at a competitive cost using a
    fully integrated design approach. The resulting design must
    represent a recognizable brand symbol for EERE/NREL. Completion of a
    conceptual design for the entire project in late Spring CY06 is
    essential.

**3.0 Technical and Scientific Viability** -- MRI will ensure the
long-term viability of the Laboratory by building and enhancing NREL's
technical capabilities.

Under the leadership of the new director, NREL has accelerated its
efforts to build value for EERE's programs by anticipating the needs of
EERE's programs, leveraging DOE's investment through third-party
agreements, and innovation. During the period, NREL developed a number
of novel scientific and economic tools at minimal cost to improve NREL's
ability to support EERE's program. NREL's computational science
capability continues to grow, as does the promise of this capability to
accelerate achievement of EERE's program goals. DOE also recognizes the
intellectual challenge and innovation attributable to the Director's
Discretionary Research and Development (DDRD) program and encourages
NREL to expand its use of this creative program where feasible. Finally,
DOE recognizes NREL's initiative to examine and refine NREL's strategic
goals, and encourages NREL to identify and acquire those infrastructure
and intellectual capabilities necessary to increase NREL's value to
EERE.

This Critical Outcome is rated "Outstanding".

*3.1 Develop, enhance, and sustain NREL's scientific, engineering and
analytic capabilities.*

*Significant Achievements:*

-   EERE's comprehensive FY 2005 -- FY 2015 Ten Year Site Plan (TYSP)
    for NREL has proven an invaluable asset for EERE advance planning
    and NREL management of the EERE research and development asset at
    NREL. The TYSP quantifies EERE's current infrastructure investment
    using private sector techniques, charts a path to maintain the
    quality of this investment, and identifies opportunities to add
    value to EERE programs through future infrastructure expansion or
    enhancements. The process of developing the TYSP has resulted in
    more efficient communications between NREL program managers and
    headquarters program managers. The TYSP provides the framework for
    future budget formulations and for credible budget defense.

-   The NREL solar program completed the Ten-Year Site Plan FY 2005 --
    FY 2015. This is the first comprehensive analysis of NREL's
    photovoltaic facilities and infrastructure needs through FY 2015.

-   NREL developed the hydrogen component of NREL's Ten-Year Site Plan
    for FY 2005 - 2015. This comprehensive site plan calls for DOE
    investment in facilities and program capital equipment for hydrogen
    R&D.

-   The modest but continuous investments in computational science at
    NREL have provided EERE a powerful new tool that could change the
    direction of EERE research efforts. Using this tool, NREL
    researchers gained leading-edge knowledge of cellulase biochemistry,
    critical to the Biomass program, developed new tools to examine the
    optical, electronic, and morphological properties of organic
    photovoltaics, and developed a new tool that will accelerate the
    development of photoelectrochemical materials for renewable hydrogen
    production. NREL researchers saved months of computational time
    normally required for building energy simulations by using the
    Energy Plus tool in the computational science environment.

-   NREL enhanced its capability in biomass research by successfully
    recruiting an industry-seasoned molecular biologist for the National
    Bioenergy Center. This individual will be responsible for leading
    NREL's program to produce fuels from cellulosic biomass, an approach
    with substantial promise to reduce the nation's dependence on
    imported petroleum.

-   NREL added substantial capability to its biomass research and
    development competency by commissioning the Biomass Surface
    Characterization Lab (BSCL), a unique capability to study the
    elusive but critical surface characteristics of biomass feedstocks.
    The BSCL will serve a broader base of Work for Other clients, and
    will allow NREL to add value to EERE's Biomass program by leveraging
    private funding and resultant scientific discoveries in support of
    the program.

-   NREL enhanced its ability to add value to the hydrogen and
    distributed generation programs by acquiring key modeling expertise
    to assess the impact of distributed sources on electrical
    distribution systems. Connection of distributed source to the grid
    is an extremely complex engineering and management challenge, and
    addition of this capability will advance EERE's understanding of
    connection issues, information necessary to shape EERE's future
    research and development investments.

-   NREL's investments in innovation through the DDRD program yielded
    technological breakthroughs that support EERE's programs.
    Contributions of note this year including leading-edge research in
    hydrogen storage critical to fuel cell applications, a novel
    approach to producing hydrogen directly from biomass using steam
    pretreatment, the development of optical microscopy tools to advance
    EERE's photovoltaic and bioenergy efforts, and new capabilities to
    fabricate and characterize organic light-emitting diodes (LED) to
    produce low cost, high efficiency solid state indoor lighting from
    organic white LEDs.

-   NREL modified the Stochastic Energy Deployment Systems model, used
    to evaluate the general energy market, to allow the valuation of the
    reliability component of EERE technologies, thereby offering the
    opportunity to change how economists and investors view the
    contribution of renewable energy technologies.

-   NREL developed a number of novel scientific techniques and made a
    number of modest --but valuable---enhancements to existing equipment
    in support of EERE's programs. These include upgrading
    instrumentation to better define the hydrocarbon mixture of diesel
    exhaust to improve future engine design, an inexpensive spectroscopy
    technique for characterizing thin films in support of the Solar
    program, and expanded power electronics capabilities to advance
    interconnect technologies and equipment, critical to all distributed
    generation technologies.

-   During FY 2005, NREL management guided the construction of the new
    Science & Technology Facility (S&TF) past the 50% completion mark,
    with move-in scheduled to start in June 2006. This remarkable
    facility is adjacent to the Solar Energy Research Facility (SERF)
    and will enable close industry and NREL collaboration for expedited
    prototype development of photovoltaic manufacturing processes. The
    S&TF is ahead of schedule and under budget; and it is on track to
    support a LEED "Gold" rating compared to the "Silver" rating
    required in the Department-approved objectives.

-   NREL was awarded DOE Wind Energy Program's "Outstanding R&D
    Partnership Award" for excellence in collaborative development of
    innovative wind turbine technology, for the development of the Storm
    1.8kW residential wind turbine. Awardees J. Green and D. Calley
    (Southwest Wind Power) were recognized for the strong NREL
    collaboration with the industry.

-   NREL continued to respond to critical needs of the DOE Wind Program
    office by placing two technical staff directly in the Program Office
    to provide Technical Advice on R&D options, metric and goals, and
    Technical Assistance strategies, goals and metrics and Assistance
    with NEPA requirements.  In addition, due to the increased emphasis
    on program planning and the introduction of the Corporate Planning
    System at DOE the NREL Wind Program has created a new hybrid
    business management position (Mary Wheeler) at the NWTC to lead the
    planning activities and manage the CPS planning and input, and has
    the special technical skills to work with both NREL and DOE
    technical staff to set realistic plans, goals and milestones.

-   NREL implemented a clever analytical technique to distinguish
    between dissociative and non-dissociative hydrogen adsorption on
    materials. The technique can be used to identify new hydrogen
    storage materials that will be able to store and release hydrogen
    easily.

*Notable Achievements:*

-   Building on existing capabilities, NREL designed a low-cost solution
    to test the longer blades that characterize today's wind industry.
    Commissioning of the 50-meter Structural Blade Test Stand will add a
    critical capability to support the Wind program's efforts to
    accelerate deployment of wind capacity while minimizing engineering
    and performance risk to U.S. manufacturers.

-   NREL issued an RFQ for the first major system in the new Science &
    Technology Facility---a silicon cluster tool. This complex system
    will allow multiple material characterization and process procedures
    to be quickly accomplished for bulk and thin silicon substrates.

-   NREL briefed DOE on plans and recommendations for a potential
    Engineering Test Laboratory at NREL. NREL also laid the groundwork
    for development of the CD-0 plan.

-   NREL developed a plan to upgrade its electrolysis testing capability
    as an interim strategy while the Engineering Test Laboratory is on
    hold during the third quarter. The upgrade will allow DOE and NREL
    to meet the Hydrogen program's schedule in its Multi-Year RD&D plan.

*Significant Deficiencies:* None.

*Notable Deficiencies:* None.

*-Items of Program Interest or Concern for the Next Performance
Period(s):*

-   The update of the TYSP is critical, and the updated TYSP will form
    the foundation for the formulation of the FY 2008 facilities and
    infrastructure budget. NREL needs to work closely with DOE as it
    prepares its update.

-   NREL is encouraged to increase its Work-for-Others (WFO) account
    where those activities support or leverage EERE's programmatic
    investments. NREL must, however, ensure that WFO activities do not
    degrade NREL's ability to meet it annual commitments to EERE's
    programs, and should discuss WFO opportunities more openly with
    EERE's programs.

**4.0 Mission Support --** MRI will manage and enhance NREL business and
management systems, work processes, and capabilities to provide an
effective and efficient work environment that enables the execution of
NREL's mission.

NREL's business and support systems continue to provide outstanding
value to EERE through customization of its systems to reflect the needs
of EERE's programs and constituents. MRI has ensured that NREL's
business and support systems are responsive, are managed with high
integrity, and are provided at the lowest cost possible commensurate
with risk. Moreover, NREL's financial and procurement organizations have
conducted NREL-wide training in the areas of financial transactions
(i.e, the flow of money through the DOE/NREL system) and third-party
agreements (i.e., Cooperative Research and Development Agreements,
Work-for-Others agreements, etc.), in an effort to improve the
effectiveness of employee's management of these critical areas. DOE
lauds NREL's efforts to transition its support systems to a strategic
rather than the more traditional transactional capability, and
encourages NREL to continue this transition in future. Finally, NREL is
commended for its support and assistance of DOE's STARS and EERE's
Project Management Center initiatives.

This Critical Outcome is rated "Outstanding".

*[Performance Objective]{.underline}*

*4.1 Deliver efficient, effective, and responsive business and
operational support.*

*Significant Achievements:*

-   The NREL Finance Office led and coordinated a smooth and complete
    closeout of NREL Research and Subcontract actions funded by Limited
    Term Appropriations.  Only \$55,834 of the over \$157 million in
    funding that expired in FY 2005 had to be de-obligated.  The NREL
    Finance Office planning and execution of this effort assured that a
    maximum amount of available funding was used for mission support
    rather than being lost due to the time limited nature of the
    Appropriation.

-   The NREL Finance Office worked collaboratively with DOE to support
    the timely and complete transfer of funds, financial records and
    financial data for the NREL contract from the National Nuclear
    Security Administration allotment to the allotment of the National
    Energy Technology Laboratory. NREL's support and cooperation enabled
    a major portion of the transition to go smoothly without disruption
    to ongoing mission work.

-   Due to difficulties the Department experienced with the
    implementation of STARS, more reliance was placed on the NREL
    Finance Office to assist DOE in the reconciliation and reporting of
    financial data throughout the second half of the fiscal year. 
    During the STARS transition, NREL worked collaboratively with EERE
    and Golden to develop and regularly submit complex reports clearly
    showing the financial status of each NREL program.  This enabled
    EERE to continue Program Management worked based on accurate and
    timely information that was unavailable from any other source.  The
    integrity of the NREL financial data has been critical to the
    successful completion of a difficult fiscal year.

-   NREL's increased attention to subcontract management resulted in
    funds being returned to the programs quicker and a reduction in
    uncosteds. In FY05, NREL closed out 637 subcontracts, recovering
    \$4.8M for program use.

-   NREL aggressively pursued the leveraging of Government funds through
    cost sharing subcontracts. In FY05, NREL placed \$78M of
    subcontracted work of which \$54M was eligible for cost sharing.
    Through its efforts, NREL added \$26.6M of cost share funds to DOE's
    funds, increasing DOE's effective investment to \$104M (or 49%).
    NREL's cost share performance is the best to date.

-   During this assessment period, the NREL Security Program has
    provided outstanding security support to its employees, visitors,
    and the Golden Field Office. The DOE HQ audit team completed a
    security audit of the NREL security program in August 2005 and
    praised NREL's key control program and its Foreign National Visits
    and Assignments program. NREL manages approximately 6,500
    accountable keys and has supported the Laboratory in the processing
    of 229 Foreign National visits.

-   The Legal Office conducted its activities in FY 05 on a sustained
    outstanding level of performance in which all critical items
    presented to the Office, from high-profile transactions to
    short-tern around matters were completed in an efficient, cost
    effective manner with high quality outcomes. This critical support
    provided by the Legal Office protected the legal interests of NREL
    and DOE; promoted cost savings through risk management; invited
    early advice and beneficial counsel to NREL elements.

-   At the request of the Geothermal Technologies Program, NREL
    developed a Task Order Agreement (TOA) in support of the provision
    of technical assistance for direct-use, and other, geothermal
    projects in support of Geopowering the West (GPW) priorities as
    developed by GPW State Work Groups (SWGs.) NREL developed TOA,
    initiated a competitive solicitation process for the selection of
    technical service providers, conducted the technical merit review
    panel and selection process and made awards for the TOA as
    appropriate. NREL has developed project work statements in support
    of TOA projects and is administering and managing these tasks in
    accordance with defined parameters. NREL is delivering efficient,
    effective and responsive business and operational support with
    respect to this effort.

*Notable Achievements:*

-   During the performance period NREL has improved its ability to
    foster diversity in all program areas. The FY 05 Affirmative Action
    Plan based on the 2000 Census data identified several areas for
    attention. NREL leadership has set a new standard for fostering
    diversity, and the Director is involved in the review of each
    selection and offer made. This should result in increased diversity
    outreach efforts.

-   During the reporting period, the NREL Finance Office developed
    'Finance 101' courses related to financial reports and financial
    management.  These courses were conducted throughout the period and
    attended by over 100 NREL employees.  Course objectives and feedback
    received from participants confirm they gained a better
    understanding of the financial processes at NREL, the terminology,
    and how NREL receives funding.  This education and training results
    in increased efficiencies.

-   NREL continued to meet its Balanced Scorecard subcontracting goals.
    NREL achieved these goals while maintaining an overall cycle time
    for awards of 30 days and reducing cycle time for new awards by 13%
    to 52.4 days.

-   NREL initiated staff training for the execution of Third Party
    Agreements, training approximately 100 employees to date. As Third
    Party Agreements grow in importance at NREL, DOE expects that NREL
    will continue its training efforts to reach all staff integral to
    the development and implementation of these agreements.

-   The Requirements Management Systems Group implemented a risk-based
    self-assessment process to evaluate adequacy of its policies,
    procedures, programs and forms and their compliance with applicable
    requirements. The outcomes of this assessment were to fully
    integrate the requirements analysis, delivery, and compliance
    processes and to provide input to the NREL's assurance to DOE
    regarding the state of compliance to requirements.

-   NREL Information Services has continued to provide a reliable
    network infrastructure with availability at an all time high. The
    infrastructure is a critical element used by the entire laboratory
    which helps personnel accomplish their mission. Information
    Technology investments and enhancements have been one of the key
    reasons the laboratory had a successful Electronic Processing
    implementation. NREL Information Services also continues to address
    and respond to a growing number of cyber security requirements while
    providing a secure cyber infrastructure in spite of the growing
    number of cyber threats presented to them. NREL Information Services
    has implemented an anti-spam service which aided in blocking
    unwanted email to recipients which made a vast improvement in
    overall email services to the laboratory by eliminating unwanted and
    unsolicited spam email prior to it being received by users. This
    capability alone saves valuable network and email services storage
    space which in the past has been difficult to manage at the user
    level.

-   NREL has updated both their Site Security Plan (SSP) and their local
    threat assessment to address new DOE Personnel Security requirements
    and address changes to the threat environment. NREL has successfully
    completed security training for 100% of its employees and regularly
    sends out security reminders ensuring security awareness for all
    NREL employees.

-   NREL has been very proactive in supporting and implementing Homeland
    Security Presidential Directive-12 as it relates to the Department
    of Energy. As the DOE Security Badge issuing authority for the
    Golden Field Office, NREL has adopted new policies and procedures in
    support of the new Personal Identity Verification (PIV) requirements
    outlined in DOE N 206.2.

*Significant Deficiencies:* None.

*Notable Deficiencies:* None.

*Items of Program Interest or Concern for the Next Performance
Period(s):*

-   NREL Finance must continue to support the operation of STARS. This
    includes efforts to reconcile the NREL/STARS trial balance and
    efforts to resolve the past out of balance condition.

-   NREL needs to follow DOE guidance and to be proactive regarding the
    implementation of OMB Circular A-123 Appendix A changes to implement
    Internal Controls over Financial Reporting.

-   Beginning in October 2006, new PIV II compliant security badges are
    required to be issued to all new federal employees that have
    completed the PIV I certification. Between Oct 06 and Oct 07 all
    federal employees with less than 15 years of service will be issued
    new PIV II compliant security badges upon verification of a NACI,
    federal employees with more than 15 years have an additional year to
    be in compliance. As these requirements do not apply to uncleared
    contractors, NREL and GO will need to work closely to come up with a
    plan that supports both PIV II compliant security badges and local
    site access badges that is both cost effective and has little
    operational impact.

-   NREL must continue to improve its procurement performance for
    Veteran Owned and Veteran Owned Small Disadvantaged businesses.

-   While most of the financial value of aged subcontracts has been
    recovered and returned to the programs, NREL must make every effort
    to complete the close out of remaining aged subcontracts in FY06.

-   While the Legal Office has been responsive to day-to-day matters
    arising within the complex, attention should be directed to the role
    of the Office in the strategic efforts of NREL under NREL's new
    leadership. This could include the role of legal in NREL's new
    technology transfer alignments and in critical technology areas such
    as the joint NREL/Golden and the Hydrogen Vehicle & Infrastructure
    Demonstration Program. Golden's Office of Chief Counsel can assist
    the Legal Office in assuring that legal considerations will be a
    critical element in the NREL of the future. Continued communication
    between these offices is necessary for success.

*4.2 Demonstrate excellence in infrastructure management.*

*Significant Achievements:* None.

*Notable Achievements:*

-   NREL continues to demonstrate leadership with the implementation of
    the Sustainable NREL Master Plan. Reduction of energy use was
    obtained with the implementation of small retrofit projects and
    renewable energy project purchases. NREL is currently planning to
    implement an Energy Savings Performance Contract that will offset
    the use of natural gas with the use of a renewable biomass fuel
    source. This further demonstrates NREL's continued efforts to the
    implementation of renewable energy projects.

-   The Facility Information Management System (FIMS) was well managed
    to meet all the updating requirements for information population as
    required by DOE Order 430.1B, Real Property Asset Management. A
    program review by GO determined that NREL's system is current and
    works as designed with the maintenance program. The Condition
    Assessment Survey provided a good validation of the FIMS data and
    supports the facilities and infrastructure investment strategy at
    NREL. NREL's Facility Condition Index (FCI), a measure of deferred
    maintenance, rates as "Excellent".

*Significant Deficiencies:* None.

*Notable Deficiencies:* None.

*Items of Program Interest or Concern for the Next Performance
Period(s):*

-   EVMS certification is important to the success of future
    construction projects at NREL. It is expected that NREL will have
    gained certification by end of FY 2006, and that NREL's certified
    system will be fully automated and used all future line-item and
    other large projects. EVMS is an integral part of good project
    control and management; in particular, accurate cost, scope, and
    schedule development and effective and reliable project execution.

-   While NREL's FCI of 2% rates as "excellent", the FCI only measures
    "deferred" maintenance and is not sufficient for management of
    EERE's research and development investment. NREL must work with DOE
    to continue to perfect its approach to quantifying and describing
    the condition of EERE's equipment, real property, and information
    technology investments. FY08 proposed investments must demonstrate
    how NREL is preserving the condition of EERE's current
    infrastructure and how new equipment or projects support EERE's
    future mission needs.

*Contract Modification 120 Incentive Clause*

-   NREL met all incentive fee requirements identified in Contract
    Modification 120 with respect to the Science and Technology Facility
    construction project including metrics for Environment, Safety,
    Schedule, and Cost and is on target to meet the LEED metric of a
    Gold Rating certification. Additionally, MRI established the S&TF
    Oversight Board to periodically assess the project's progress and
    provide recommendations for improving performance and
    accountability. The first visit by this Board resulted in the
    enhancement of the project management team to include a construction
    manager and a maintenance technician while relocating the project
    management staff to the construction site to provide for continuous
    on-site presence.

**5.0 Environment, Safety, and Health --** MRI will protect the safety
and health of the NREL workforce, the community, and the environment.

NREL's continues to outperform DOE and private sector entities in
overall safety and health performance. During the year, NREL's injury
and illness rate was 73% and 79% lower than DOE's and private industry's
rate, respectively. Workers Compensation Costs, a measure of the
effectiveness of the safety and health program's ability to reduce both
the rate and severity of injuries, was \$0.01 per hour worked compared
to an industry average of \$0.17 per hour worked; superior performance
independently recognized and rewarded by NREL's Worker's Compensation
insurance company through a rebate of a portion of NREL's premium.
NREL's oversight of the Science and Technology Facility and other
construction projects has established safety as a non-negotiable
condition of performance, reflected in NREL's FY05 performance of no
construction-related injuries. NREL also provided leadership within the
DOE and regulatory community. NREL reviewed safety plans for all
participants in DOE's Solar Decathlon, and with the EPA and Colorado
Environmental Leadership Program through the National Environmental
Performance Track program to develop and implement a model environmental
management system.

Nonetheless, NREL's otherwise outstanding performance was marred by a
few notable and well-documented events that occurred early in the
performance year. In response to these events, the new director and MRI
properly conducted a review of laser safety operations, subcontractor
safety performance expectations, and incident reporting protocols. As a
result of these reviews, the new director quickly identified issues and
opportunities for improvement, and initiated and completed substantial
improvements to NREL's safety programs, clarified performance
expectations of staff and line organization, and re-baselined NREL's
incident reporting and management protocol. DOE expects that NREL's
safety and health performance to improve in the next performance period.

DOE notes and applauds the leadership and dedication of NREL ESH staff
members during this transition period; staff efforts were critical to
NREL's continued safe operation and improvement of NREL's safety
culture.

This Critical Outcome is rated "Excellent".

*5.1 Sustain excellence in safety, health, and environmental
protection.*

*Significant Achievements:*

-   The NREL solar program, with the assistance of ESH, initiated a
    complete redesign of laser safety protocol. All Class IIIb and Class
    IV lasers are now operational under the new guidelines. Laser safety
    and laser safety training programs are being upgraded to bring them
    into compliance with ANSI standards.

-   FY05 Injury/Illness rate is 0.42; target was 1.7

-   The DOE rate is 1.6 and the industry rate is 2.0

-   100% of reported ergonomic cases were resolved without surgery or
    long-term medical treatment

-   The Days Away/Restricted Time (DART) \[formerly Lost Workday cases\]
    was 0.25.

    -   Compared to 0.6 for DOE and 0.9 for Industry.

-   Worker Compensation Costs for 2005 equated to \$0.01 per hour worked

    -   Compared to the Industry average of \$.17 per hour worked.

    -   DOE does not post this statistic complex-wide.

-   Developed and implemented an aggressive laser restart plan

    -   All laser operations have been reviewed and approved to restart

    -   All operating documentation has been updated

    -   The laser training requirements have been updated

    -   All laser operators have been trained per the new requirements

    -   Hired a replacement Laser Safety Officer in September

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-   EPA and Colorado Environmental Leadership Program evaluated NREL's
    participation in the National Environmental Performance Track
    program and noted the high quality of the EMS documentation

-   Continued focus on construction ES&H; both the South Table Mountain
    and National Wind Technology Center construction activities

-   Sustained excellence in meeting ES&H permitting and reporting
    requirements

-   Provided significant program support for the 2005 Solar Decathlon by
    reviewing safety plans submitted by all participants, multiple
    conference calls with participants to discuss safety, etc.

-   The continued excellent response to and investigation of
    ES&H-related incidents and the development of corrective actions, as
    needed.

*Notable Achievements:*

-   NREL ES&H staff participated in a comprehensive
    self-assessment/operational surveillance of its environmental
    management system, demonstrating considerable progress towards
    compliance with DOE Order 450.1 and Executive Order 13148. These
    orders require integration of the lab EMS with the Integrated Safety
    Management System by December 2005.

*Significant Deficiencies:* None.

*Notable Deficiencies:*

-   Notwithstanding NREL's overall ESH performance, a number of
    incidents occurred in early CY 2006 that highlighted opportunities
    to improve NREL's safety culture and practices. In response, the new
    director spearheaded an effort to improve safety programs, clarify
    performance expectations of staff and line organizations, and
    rebaselined NREL's incident reporting and management protocol

*Items of Program Interest or Concern for the Next Performance
Period(s):*

-   ES&H staffing level was strained throughout 2005. Despite the fact
    that a new ES&H Director and Laser Safety Officer were hired, two
    additional professional safety representative positions have not
    been filled. This has stretched the current resources to the maximum
    to maintain the excellent performance and to provide sufficient
    coverage for the startup of the Science and Technology Facility.

*Contract Modification 120 Incentive Clause*

-   Performance Objective: The construction of the S&TF in a safe and
    environmentally compliant manner.

    -   NREL received no regulatory Notices of Violation

    -   NREL experienced no OSHA recordable injuries or illnesses during
        this reporting period

> Despite the fact there were four ORPS reportable incidents during this
> reporting period, DOE has determined that these incidents did not
> adversely affect the cost, scope, and schedule of this project. The
> incidents were directly attributed to sub-tier contractors willfully
> ignoring NREL, R.A. Mortenson, and OSHA construction requirements and
> direction. NREL's and Mortenson's response to these incidents was
> immediate, notification was timely, and NREL worked with the
> construction contractor to mitigate all causal factors.

**6.0 Outreach and Stakeholder Relations --** MRI will build strong and
productive relationships and alliances with stakeholders, advance
awareness and support of the DOE renewable energy and energy efficiency
mission, and advance math, science, technology, and engineering
education.

MRI/NREL continued to contribute substantial value to EERE's outreach
and educational efforts. MRI/NREL's accomplishments are highlighted
below.

This Critical Outcome is rated "Outstanding".

*6.1 Promote awareness of DOE/EERE and NREL missions and technologies,
and build relationships that support the strategic directions of the
Laboratory.*

*Significant Achievements:*

-   NREL should be commended for its highly successful stakeholder
    outreach strategy, which includes initiatives on the local, state
    and national level, all working together to further the NREL and
    EERE missions. The comprehensive strategy has evolved over several
    years, using research and continuous evaluation to measure success
    and direct refinements.

    -   Among the strategy's more successful elements are forums the
        Laboratory hosts on current or emerging issues in energy
        efficiency and renewable energy that bring government, business,
        university and industry association representatives to NREL for
        substantive discussions. The forums have proven very valuable at
        creating partnerships and raising NREL's visibility among key
        sets of opinions leaders in the state and region. Forums held in
        FY05 include one on the "Energy/Water Nexus" and on "Leadership
        in Forging a Clean Energy Future." The latter addressed public
        sector adoption of energy efficiency and renewable energy
        technologies. Both had excellent attendance and received very
        positive reviews by participants. Both also have resulted in
        follow-up discussions leading to potential partnerships to
        further NREL's and EERE's mission.

    -   Another key element of the strategy involves reaching out to
        specific companies and business organizations to form alliances
        to further the mission. This past year saw visits by
        PepsiCo/Frito-Lay, Continuum Partners, Xcel Energy, the Metro
        Denver Economic Development Corporation, the Colorado
        Nanotechnology Initiative, the American Farm Bureau Federation,
        and the Economic Developers' Council of Colorado.

    -   NREL's Stakeholder Forum and Technology Showcase/Reception in
        Washington, D.C. drew the largest attendance of any similar
        activity the lab has held. Some 225 attended the Technology
        Showcase/Reception, with about 90 of those participating in the
        Forum as well. Among the attendees were Secretary Bodman, then
        Assistant Secretary David Garman, Senator Ken Salazar (D-CO),
        Rep. Bob Beauprez (R-CO), Rep. Mark Udall (D-CO), Rep. Roscoe
        Bartlett (R-MD), and many Congressional staff members.

    -   One indicator of the success of NREL's stakeholder outreach
        effort is the number of elected officials and staff who consider
        the Laboratory important enough to visit. That number was
        exceptionally high during FY05 and included senators Ken Salazar
        (D-CO) (twice), Norm Coleman (R-MN), Thad Cochran (R-MO), and
        Larry Craig (R-ID), and representatives Marcy Kaptur (D-OH),
        Roscoe Bartlett (R-MD), Paul Gillmore (R-OH), Dennis Cardoza
        (D-CA), Gil Gutknecht (R-MN), Sue Myrick (R-NC), and Albert Wynn
        (D-MD). The number of visits by congressional staff was the
        highest ever, including key staff from the House Appropriations
        Committee and the Senate Energy and Natural Resources Committee.

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-   NREL's media relations program resulted in 2,162 individual stories
    during FY05, a very significant number for a research organization
    of NREL's size. Just as significant, the Laboratory has maintained
    very high numbers for the last several years. This past year saw a
    63 percent increase in stories in national media, a result partly of
    the continuing high level of news media interest in energy issues
    and the Laboratory's highly visible sponsorship of the North
    American Solar Challenge and Solar Decathlon, both conducted this
    past year. However, some of the credit must also go to the
    Laboratory's strategy of increasing national media awareness of NREL
    as an authoritative, responsive, and reliable source on energy
    efficiency and renewable energy issues.

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-   The NREL solar program gave outstanding support to the design and
    implementation of the Solar Decathlon, which was held on the
    National Mall in September - October 2005. This high-visibility
    totally successful event achieved its goal of further informing the
    public about the advantages of residential solar energy deployment.

-   NREL was instrumental in providing analytical support to the Western
    Governors' Association (WGA) Solar Task Force. This support was
    outstanding and is enabling the Task Force to complete a report that
    meets the needs of the WGA. NREL was also an important part of the
    New Mexico Solar Task Force. As with the WGA, NREL provided
    outstanding analytical support. The output from these task forces
    provides important solar information to a large number of utilities,
    environmental organizations, industry stakeholders, and state
    policymakers.

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-   NREL's Technology Manager and program staff provided briefings to
    delegations that visited NREL or interviewed NREL staff:

    -   Universities: University of Minnesota, University of Hawaii,
        Montana State University, Oakland University, University of
        Michigan, Lawrence Tech University, Princeton University

    -   Journalists

        -   German Public Radio

        -   National Public Radio (KUOW, Seattle)

        -   New Fuels and Vehicles

        -   National Geographic

        -   Geographical Magazine (UK)

        -   Scripps Fellows in Environmental Journalism

        -   Rocky Mountain News

        -   Discover Magazine

        -   Fuel Cell Magazine

        -   Chemical and Engineering News

        -   Wired On-line Magazine

    -   Government

        -   Senator Ken Salazar

        -   Congresswoman Marcy Kaptur

        -   Congressman Roscoe Bartlett

        -   Appropriations Subcommittee on Energy & Water Development
            Staff

        -   Department of Energy: Secretary Samuel Bodman, Steve Chalk,
            Pat Davis, Sig Gronich, Kathi Epping, Jacques
            Beaudry-Losique

        -   State of Arizona

    -   Associations: American Society of Mechanical Engineers, Electric
        Power Research Institute, National Hydrogen Association, Edison
        Materials technology Center, National Center for Manufacturing
        Sciences, Nobel Foundation

    -   Companies: Ford, Honda, Nissan, BP, Solar Systems, General
        Motors, Shell

    -   

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-   International: New Zealand, Australia, Taiwan, Norwegian Study Tour,
    Japan (Japan Automobile Research Institute, NEDO), Austria.

-   NREL maintains excellent relations with key windows R&D stakeholders
    that place full confidence in NREL to maintain their product
    characteristic and design "secrets." The Peer Review of NREL's
    windows research results showed that industry highly respects NREL's
    capability.

*Notable Achievements:*

-   The Laboratory received accolades for its innovative work in
    developing 3-D animation to illustrate the deposition of a special
    coating on tubes used in parabolic trough arrays and similar 3-D
    animation depicting the growth over time of cubooctahedral quantum
    dots. Such cutting-edge work in communicating highly technical
    concepts is not readily available in the private sector. The close
    working relationships between the Laboratory's researchers and
    technical communications staff were essential to timely completion
    of the projects and the accuracy of the information conveyed in the
    animations.

-   Continuous evaluation of outreach programs and products is critical
    to their effectiveness. One notable example of how the Laboratory
    uses evaluation to refine its stakeholder outreach approach is the
    survey conducted this past year of the readers of Stakeholder
    Update, an electronic newsletter sent to a growing list of 870
    industry, academia and government stakeholders. The survey showed
    many readers wanted more information about NREL research advances,
    reports issued by the Laboratory, and statistics. Based on the
    research findings, the Laboratory adjusted the newsletter's content
    to more closely match stakeholder needs.

-   Similarly, the Laboratory should be commended for the management
    approach of a news media relations tool they developed\--an
    electronic newsletter of story ideas targeting specific news media.
    Although the tool proved to be marginally effective, the initiative
    shown in trying something new, the use of monitoring and evaluation
    to determine its effectiveness, and the willingness to acknowledge
    the tool was not meeting expectations and to discontinue it
    demonstrated sound management.

-   Support provided to GO and EE for the North American Solar Challenge
    and Solar Decathlon was essential. For the race, the Laboratory's
    support at the NREL "home base" while the rest of the public affairs
    team were on the road was especially valuable. For the Decathlon,
    the Laboratory deserves kudos for the support provided to the
    "crowdbuilding" effort, in which the Laboratory worked to attract
    visitors to the Solar Village through chambers of commerce, visitors
    bureaus, community calendars on various web sites, and many other
    avenues. The creativity and initiative shown in both these areas
    were key to making both outreach efforts a success.

-   A short-fuse request from EE to NREL for the development of a
    display for the lobby of the Forrestal Building resulted in the
    "EERE Pavilion," which earned NREL accolades from the highest levels
    of DOE, including Secretary Bodman and Under Secretary Garman. This
    achievement was notable both for the rapid response (it was
    completed in about a month) and the superior quality of the final
    product.

-   NREL supports the Geopowering the West activities within the
    Geothermal program by providing technical outreach, education and
    communication resources that highlight the value of geothermal
    technologies and geothermal energy use. NREL creates and maintains a
    valuable photo library of geothermal projects and geothermal
    resources that are used in a variety of products and publications.
    NREL provides resources that enhance the ability to communicate the
    opportunities and constraints as they relate to the technical
    adoption of geothermal technologies. This information has been
    developed on a local, regional and state level to most effectively
    promote future understanding and adoption of the technology. These
    efforts enhance the technical program and future development of key
    technologies that will enhance the geothermal market.

*Significant Deficiencies:* None.

*Notable Deficiencies:* None.

*Items of Program Interest or Concern for the Next Performance
Period(s):* None.

*6.2 Demonstrate value as a corporate citizen within the community.*

*Significant Achievements:*

-   NREL's Visitors Center attracted more than 16,000 visitors during
    FY05, slightly surpassing the previous record set in FY05 and a
    healthy number for a center of its size and location. Much of the
    traffic can be attributed to aggressive programs to attract school
    groups and to a range of presentations and special events targeted
    at consumers. An example of one of the more successful special
    events the Laboratory uses to bring people in was the Residential &
    Commercial Building Expo, held in August, which attracted more than
    600 to the Visitors Center on one day. In addition, a recent trend
    is an increase in the number of walk-in visitors, now at about 100
    per month, attributable in part to efforts to have the Visitors
    Center listed in Metro Area tourism guides and web sites and to
    partnership arrangements with other similar venues.

*Notable Achievements:*

-   The NREL managing partners contributed roughly \$150,000 during FY05
    to support activities in the local communities, including
    memberships in regional business and civic organizations, employee
    volunteer projects, and charitable activities. The funds bring
    significant returns in visibility and in good will from important
    stakeholders in the local area.

-   Among the charitable contributions was \$50,000 to build a Habitat
    for Humanity home.  The Laboratory's building energy research staff
    designed the home to be "net zero energy," and Laboratory employees
    performed most of the actual construction work.  The home will be
    monitored the first year to determine how effective the design is
    and make adjustments, as needed, to future Habitat net-zero-energy
    homes.  Secretary Bodman attended an event at the home to help
    inform the public of the NREL involvement and the possibilities of
    energy-efficiency technologies.  The Secretary has referred to his
    visit to the home many times since in remarks he has given around
    the country, thus bringing more visibility to EERE technologies and
    the Laboratory's capabilities.

-   As with its handling of the news media relations newsletter that
    fell short of expectations (discussed above), the Laboratory should
    be commended for the management approach to its Renewable Energy and
    Efficiency for Business (REEB) program. REEB is a program intended
    to attract business people and business organizations to the
    Laboratory for presentations and tours to inform this critical
    stakeholder group about NREL's mission and value to the Denver Metro
    Area and the state. Although the program began well, interest among
    potential participants quickly waned. The Laboratory is
    re-evaluating the program to either revamp or discard it and try a
    different approach to reach the same end. The critical point is that
    the Laboratory's continuous evaluation and refinement of programs
    enhances their effectiveness.

*Significant Deficiencies:* None.

*Notable Deficiencies:* None.

*Items of Program Interest or Concern for the Next Performance
Period(s):* None.

*6.3 Implement programs that advance high quality science, mathematics,
technology, and engineering education.*

*Significant Achievements:*

-   NREL's intern program continues to excel and to set a standard for
    other national laboratories to emulate. The Office of Science rated
    NREL's intern program 2^nd^ in performance of all 11 laboratories
    where the office provides intern funding. Also, scores on NREL
    intern research abstracts were the highest of all the labs. And,
    finally, ten NREL intern research reports were submitted by the
    Office of Science for review and publication in DOE's *Journal of
    Undergraduate Research*, a higher per-capita number than for any
    other Laboratory. The reason behind the success is NREL's structured
    and closely managed approach, which ensures the interns perform
    meaningful work side by side with researchers. By contrast, at some
    laboratories, interns are treated less as subordinate researchers
    with potentially valuable contributions to make than as extra summer
    help.

-   NREL's management and conduct of its three major education
    competitions---the regional High School Science Bowl, the national
    Middle School Science Bowl, and the Junior Solar Sprint/Hydrogen
    Fuel Cell Car Competition---resulted in highly successful events
    that saw increases in the number and quality of competitors over
    previous years. Data from participant evaluations showed that the
    Laboratory is doing an outstanding job of managing and continuously
    improving upon the competitions.

*Notable Achievements:*

-   The Laboratory should be commended for its sound management of the
    CLOUT Program, which provides reading tutors to 4^th^ grade students
    in needy Metro Area public schools while engaging the students in
    energy science learning activities. Following a strategy developed a
    few years ago, NREL added three new schools during FY05 and now
    reaches a total of 72 students. Discussions are underway to add more
    schools in FY06. The strategy enables growth in the program at a
    measured, manageable pace. Key to the strategy is the recruitment of
    local champions to manage the program at each school and the
    recruitment of tutors from students at the schools and from
    organizations near each school to avoid taxing NREL and DOE
    resources.

-   NREL continued to support and mentor a number of outstanding
    students working toward advanced degrees in electrochemistry.
    Working at NREL, these students are learning real-world skills and
    gaining hands-on experience. Their results are also helping NREL
    meet its goals for DOE's Hydrogen Program.

*Significant Deficiencies:* None.

*Notable Deficiencies:* None.

*Items of Program Interest or Concern for the Next Performance
Period(s):* None.

MRI/Battelle's overall FY05 performance at NREL is rated "Low
Outstanding".