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President Bush's budget for FY2003 includes proposed funding for project engineering and design (PED) for the Linac Loherent Light Source (LCLS), USA. If appropriated by Congress, which is expected by October 2002, this will mark a real transition for the LCLS project, from an R&D phase into the first phase of a construction project. In the proposed schedule, two years of PED would be followed by a three-year construction cycle, with commissioning beginning in the fall of 2007.