Statement of Administration Policy: H.R. 1905 - Energy and Water Development Appropriations Bill, FY 1996

(Senate Floor)
(Sponsors: Hatfield (R), Oregon; Domenici (R), New Mexico)

This Statement of Administration Policy provides the Administration's views on H.R. 1905, the Energy and Water Development Appropriations Bill, FY 1996, as reported by the Senate Appropriations Committee-

The Administration is committed to balancing the Federal budget by FY 2005. The President's budget proposes to reduce discretionary spending for FY 1996 by $5 billion in outlays below the FY 1995 enacted level. The Administration does not support the level of funding assumed by the House or Senate Committee 602(b) allocations. The Administration must evaluate each bill both in terms of funding levels provided and the share of total resources available for remaining priorities.

Since taking office, the Administration has developed and implemented a number of policies to increase government efficiency, known as "Reinventing Government," and to concentrate resources on investment programs critical to ensuring a strong economic future. Because a number of provisions of the committee-reported bill are in direct opposition to these policies, as well as other Administration policies, the Administration strongly opposes the bill as reported by the Committee.

Army Corps of Engineers

As part of the President's "Reinventing Government" process, the Federal Government has been re-examining its roles and missions to determine which activities should be devolved to the state and local levels. In developing the President's FY 1996 request for the Corps, the Administration's approach was to avoid simple across-the-board cuts that could adversely affect all Corps programs. Rather, the Administration has sought to maintain the strength of those programs that provide broad national benefits, such as commercial navigation and interstate flood control projects. We believe this approach to be preferable to one that would allocate scarce Federal funds to projects of primarily local or regional interest or importance.

The Administration strongly objects to the Committee proposals, which directly contradict this important reinvention of the Corps' mission and its relationship with state and local governments in the provision of water resources development projects. By explicitly rejecting this reinvention, eliminating funding for much-needed environmental studies, and proposing six unrequested new starts with an FY 1996 funding level of approximately $3 million and future mortgages totaling almost half a billion dollars, the Committee has voted for business as usual.

Department of Energy

The Administration appreciates the committee's action to restore cuts made by the House in nuclear weapons activities and other defense activities. The Committee has, however, provided $100 million more than requested for stockpile management activities. The Administration believes that the nuclear weapons stockpile is safer and more reliable today than it has ever been, and that there is no need to increase funding for stockpile stewardship and stockpile management activities, particularly in light of severe cuts that are being made in other areas.

The Administration is committed to maintaining a Department of Energy and to moving forward in its restructuring and realignment. The Administration is disappointed that the Committee has followed the House's lead in cutting the Department significantly below the FY 1996 request in many areas and has not been more sensitive to the priorities of the Administration. These include: Defense Environmental Management, Energy Research, and Solar and Renewable Energy Research and Development, especially the Climate Change Action Plan initiatives and the global climate change research and technology development efforts. The cuts are particularly disruptive to the programs because of earmarkings within the totals. Additional information on the Administration's objections to the Committee reductions in Department of Energy programs is contained in the attachment.

The Administration appreciates the Committee's restoring over $720 million to environmental cleanup programs. The Administration concurs-with the Committee's emphasis on reducing risks to public health and safety, as well as on considering environmental impacts.

Additional Administration concerns with the Committee- reported bill are contained in the attachment.

Attachment

Attachment (Senate Floor)

ADDITIONAL CONCERNS

H.R. 1905 — ENERGY AND WATER DEVELOPMENT APPROPRIATIONS BILL. FY 1996

(AS REPORTED BY THE SENATE APPROPRIATIONS COMMITTEE)

Army Corps of Engineers

The Administration's proposed reinvention of the Corps of Engineers' mission to focus on water resource projects of national significance and scope is consistent with the lessons learned in the aftermath of the 1993 Midwest Floods. It also recognizes the growing ability of State and local governments to provide for their own economic self-interest through structural and non-structural flood protection, recreational harbors, and beach nourishment projects. In addition, the proposed reinvention is consistent with the House and Senate Budget Committees' recommended savings for FYs 1996-2002.

The Administration is eager to work with Congress to establish new funding criteria and financing mechanisms for water resources programs in the hope of making significant reductions in expenditures over the next five years and beyond, while supporting the Corps of Engineers' highest priority programs.

The Administration objects to the provision of the Committee-reported bill that would prohibit the Corps from closing or changing the function of district offices. The Army is currently in the middle of its effort to restructure the Corps of Engineers, and the Secretary of the Army should be allowed to complete this restructuring process without arbitrary limitations.

Finally, the Administration strongly objects to the provision that would reduce funding for the Corps' wetland regulatory program enforcement activities. This would result in an approximately 50-percent reduction in What is already a minimum enforcement program. This reduction would put in jeopardy the President's commitment to no net loss of wetlands. It would also greatly reduce the Corps' ability to resolve violations in an expeditious manner through negotiations to avoid fines, lawsuits, and possible criminal charges against violators.

Army Corps of Engineers and Bureau of Reclamation Salmon Recovery

The Administration commends the Committee for restoring the $15 million deleted by the House to fund the requests for the Army Corps of Engineers and Bureau of Reclamation for two key measures that would avoid jeopardy to the Columbia/Snake River threatened and endangered salmon runs. These measures — draw-down of the John Day Reservoir (Washington/Oregon) and acquisition of Upper Snake River water (Idaho) — are specified in the National Marine Fisheries Services 1995 Biological Opinion on the operation of the Federal Columbia River Power System. Failure to fund these measures would undo years of interagency consultation and discussions with States and Tribes and could expose the Federal Government to costly and time-consuming litigation.

Bureau of Reclamation

The Administration objects to the $10 million reduction in the committee bill for initiating safety of dams work. These funds are requested to conduct major construction work on three projects. The Committee's proposed reduction would not achieve any true savings. It would simply postpone the costs of needed repairs to FY 1997 and prolong the period during which projects must operate suboptimally under special safety restrictions.

The Administration also objects to the proposed reduction in funding for the Bureau of Reclamation's Operation, and Maintenance account to a level $7 million below FY 1995. Although such reductions may be achievable in any given year, the level provided by the Committee would not be sustainable in future years without the shift of significant additional operation and maintenance costs to Reclamation customers.

Finally, we urge the Senate to restore the $9 million requested for Water Conservation Challenge Partnerships. The Committee bill, Which provides no funds for this program, would severely curtail the Bureau of Reclamation's ability to offer cost-shared assistance for irrigation districts and local communities around the West. These funds are intended to meet critical needs for water conservation measures identified by these local agencies to save water, improve reliability, and reduce costs.

Department of Energy - Energy Research

The Administration commends the Senate for its strong support for the Science Facilities Initiative. This initiative will ensure that the Department's science facilities are operated efficiently, serving thousands of university, industry, and government scientists in the biological, medical, and materials science research communities. However, the Administration objects to the committee's proposed $20 million reduction from the House recommended funding level for the High Energy Physics program. Such a steep reduction would force the Department to curtail operations at leading high energy physics labs and would undermine the intent of the science Facilities Initiative.

Funding levels proposed by both the House and the Senate Appropriations Committees send a clear message that the U.S. Magnetic Fusion Energy program must be substantially restructured. The President's Committee of Advisors on Science and Technology (PCAST) has conducted a thorough study and also has recommended a restructuring of the program in light of current and anticipated budget constraints. The PCAST also has concluded that a $320 million level of funding is required to preserve the most indispensable elements of the U.S. fusion effort and associated international collaboration while maintaining momentum toward the goal of practical fusion energy. The Administration urges the Senate to consider such a funding level.

The Administration appreciates the Committee's decision to restore $25 million to the Department's technology transfer program within the Office of Energy Research, but remains disappointed at the recommended funding level, which is less than half of the Administration's request for this important program. Such a funding reduction would eliminate high quality cost-shared projects with industry in research areas that are important to our Nation's economic competitiveness.

The Administration also strongly supports the Committee's recommendation to restore funds for the Biological and Environmental Research program, which conducts high-priority human genome, environmental, and global climate change research.

Department of Energy - Nuclear Waste Disposal Fund

For FY 1996, the Committee has proposed funding the Civilian Radioactive Waste Management program at $400 million, of which $85 million is for interim storage activities. The Administration urges the Senate to consider seriously the proposal in the President's budget to fund the permanent repository program partially from other sources of new income. This funding approach would enable the FY 1996 funding to be increased to the level of $630 million proposed in the President's budget.

Department of Energy - Solar and Renewable Energy Research and Development

Although the Administration welcomes the Committee's small increase over the House approved level, the committee- reported bill would nevertheless make massive reductions to the request for Solar and Renewable Energy research and development. The Committee's stated policy is to focus on fundamental research and to take the reductions from applied research and development and industry commercialization assistance. The Committee proposes cutting much of the climate Change Action Plan initiatives and cutting DOE's global climate change research and technology development efforts. These cuts would severely hinder the Nation's ability to develop the scientific understanding and technological Know-how to address in a cost-effective manner local, regional, and global environmental problems. The Administration strongly objects to these proposed reductions. The Administration also objects to the numerous special-interest earmarkings included in the subcommittee report, which further reduce the funding available for high- priority projects.

Bonneville Power Administration (BPA)

The Administration opposes section 509, General Provisions. This section, though somewhat vague, would limit BPA's annual fish and wildlife expenditures. The provision raises serious concerns about BPA meeting its appropriate responsibilities for fishery and wildlife mitigation and restoration under the Pacific Northwest Electric Power Planning and Conservation Act, other laws, and both domestic and international treaties.

The Administration shares the region's concern about the high potential costs of salmon recovery programs but cannot support an arbitrary ceiling on costs. The Administration supports and is actively engaged in efforts to achieve financial stability for BPA. The Administration believes that such stability will be attained only by broad, fundamental reforms developed carefully through an open regional dialogue. A regional solution might include a multi-year budget for salmon recovery. The Administration is willing to work with the Congress and the various interested groups in the Northwest to try to identify a core program of fish recovery activities that could provide a stable base for several years at a reasonable cost. The intent is to maintain the viability of BPA while simultaneously assuring that Federal hydrosystem beneficiaries meet their legitimate responsibilities to mitigate for environmental damages caused by the hydrosystem.

Other Independent Agencies

The Administration commends the Committee for restoring funds for the independent river basin commissions. The restored funding is in keeping with the Administration's planned shift of responsibilities for local flood control and other projects from the Army Corps of Engineers to state and local governments.