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The Earth System Prediction Capability (ESPC) inter-agency program was established in 2010 as a coordinating effort to improve collaboration across the federally sponsored environmental research and operational prediction communities for the development and implementation of improved national physical earth system prediction. Towards these goals, a set of five demonstration projects are under development and researchers are invited to participate in the definition and execution of the projects. The goal of the demonstrations is to provide unifying themes and common diagnostics to develop a common modeling environment, establish community data sets & test cases, assess predictability at sub-seasonal to inter-annual timescales, and begin to develop guidelines for the future transition to operational forecasts.