inresponsetoarequestcontainedinthefiscalyear2008.docVIP

Report Required by Explanatory Statement, Division B, Consolidated Appropriations Act, 2008 P.L. 110-161 National Science Foundation Report on Commodity and Currency Cost Increases and Impacts INTRODUCTION The Consolidated Appropriations Act, 2008, directed the National Science Foundation (NSF) to provide the House and Senate Appropriations Committees with information on current actions and future plans necessitated by the loss of buying power resulting from the decline of the dollar and increases in other commodities: The loss of buying power resulting from the decline of the dollar and other commodity-related impacts such as the recent dramatic increase in the cost of oil and steel is of concern to the Committees. Taken together these two factors seriously affect many of the international programs operated by the NSF. These include the Arctic and Antarctic programs, earth, ocean, and atmospheric programs, and both radio and optical telescope facilities operated at various locations worldwide. The NSF should provide a report to the Committees within 90 days after the enactment of this Act on current actions and future plans, including an analysis of establishment of a currency and commodity internal reserve fund, to address this issue.” NSF’s analysis of several potential options for addressing this issue is provided below, following a summary of recent commodity and currency cost increases and their associated impacts. All of NSF is affected at some level by commodity cost increases and the declining dollar. However, as was anticipated by the Committees, the programs most affected are those in the Office of Polar Programs (OPP) and the Directorates for the Geosciences (GEO) and the Mathematical and Physical Sciences (MPS). While inflationary increases are to be expected and planned for, and can typically be absorbed within operating budgets, dramatic increases such as those seen for fuel, electricity, bulk metals and cryogenics require considera