Statement of Administration Policy: H.R. 1977 - Department of Interior and Related Agencies Appropriations Bill, FY 1996

(Senate Floor)
(Sponsors: Hatfield (R), Oregon; Gorton (R), Washington)

This Statement of Administration Policy provides the Administration's views on H.R. 1977, the Department of the Interior and Related Agencies 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. The Committee bill is $l.7 billion below the President's request.

The Administration is pleased that the Senate Committee has improved funding levels over the House-passed bill for several key investments and agencies. Notably, the Administration commends the Committee for increasing funds for science in the Department of the Interior, especially for the Natural Resource Science Agency; and for allowing implementation of the 1994 California Desert Wilderness Act by restoring management of the East Mojave National Preserve to the National Park Service.

Despite these improvements, the Senate Committee has added new legislative restrictions, reduced funding for high-priority investment programs, continued funding for low-priority items, and made additional devastating cuts in programs of the Bureau of Indian Affairs. In addition to these changes, many of the previously stated objections to the House-passed bill have not been addressed. For the reasons outlined below, the Secretary of the Interior and the Director of the Office of Management and Budget would recommend that the President veto the bill if it were presented to him as reported by the Senate Committee.

Patent Moratorium

The Administration strongly opposes the Committee's decision not to continue the current moratorium on patenting mining claims on Federal lands. Patenting means privatizing valuable Federally-owned mineral deposits, with only minimal returns to taxpayers, and putting these deposits beyond the reach of any royalty payment to the Federal treasury.

Native American Programs

The Committee's $435 million reduction to the request for Bureau of Indian Affairs (BIA) programs would devastate tribal governments and other basic services to reservations, reversing progress that has been made towards meaningful self- determination. The Administration strongly opposes the 35- percent cut for Tribal priority Allocation (TPA) programs, which include basic tribal government operations, law enforcement, housing improvement, general assistance, child welfare, and vocational training. The TPA programs are the Tribes' highest priority.

The Administration strongly opposes the transfer of responsibility for all trust programs from the Assistant Secretary - Indian Affairs to a special trustee's office in the Office of the Secretary of the Interior. This action, coupled with an $18 million reduction for trust operations, would impair ongoing efforts to improve the management of trust funds.

The Administration objects to the Committee's 58-percent reduction to BIA's Central Office functions. Resulting severance costs would necessitate the termination of almost all Washington and Albuquerque Central office staff, leaving the BIA with insufficient resources to provide policy direction or to correct material weaknesses. Further, the Committee's proposed 46- percent reduction in Area office functions would force the closure or consolidation of offices, jeopardizing technical assistance to Tribes.

Funding BIA schools at $30 million below the request, as recommended by the Committee, would severely limit the BIA's ability to operate schools on reservations in accordance with State and regional accreditation standards, would not allow for transportation to day and boarding schools, and would jeopardize school safety.

The Administration strongly opposes the 35-percent reduction from the request for the Department of Education's Indian Education programs, which primarily serve the 90 percent of Native American children who attend public rather than BIA-funded schools and provide literacy services and fellowships for Native American adults. These programs provide supplemental academic and enrichment services that would otherwise be unavailable to these students.

The Administration strongly objects to the $92 million reduction to the request for the Indian Health Service (IHS). This action would impede the ability of IHS to maintain basic health services for Native Americans and Alaskan Natives at current levels.

Endangered Species Act

The Administration strongly objects to the Committee's moratorium on endangered species listings and critical habitat designations. The Administration also objects to the 29-percent reduction in funding for Endangered Species Act (ESA) programs in the Fish and Wildlife Service (FWS). These activities arm preventive measures that help keep species off the endangered or threatened species list so that local communities will not be negatively affected by the Act. Reducing the ability of the FWS to work with States, local communities, and private citizens at an early stage outside of the regulatory environment would cost more money and cause more economic, social, and environmental conflicts in the long run.

Columbia River Basin Ecoregion Assessment Project

The Administration is opposed to the appropriations language and funding restrictions of the Committee bill that would discontinue the Columbia River Basin Ecoregion Assessment Project. This project, entering its final year, uses a coordinated, multi-agency approach to the management of public lands to improve salmon habitat, forest health, and multi-species protection within the Columbia River Basin. By establishing unrealistic timelines for analyzing data and information and finishing environmental impact statements, the Committee would prevent the use of scientific and economic information collected to date on the project. This analysis is crucial for updating forest plans based on the most recent, scientifically credible information. Eliminating the project so close to its completion would jeopardize both the ability of the Forest Service and the Bureau of Land Management (BLM) to maintain a sustainable flow of timber and the production of other goods and services generated by the forests in the affected area.

Pacific Northwest

The Administration strongly opposes the Committee's reduction of funding for several economic and environmental activities in the Pacific Northwest. The BLM would not be able to meet its timber targets at these reduced levels. The Fish and Wildlife Service would not be able to approve timber sales for the land management agencies or work with private landowners under special rules proposed by the Administration to ease spotted owl taking prohibitions on private lands. Reduced funding would also mean fewer employment opportunities under the "Jobs in the Woods" program. The Administration urges the Senate to restore funding for economic and environmental activities in the Pacific Northwest.

Tongass National Forest

The language in this bill that directs the Forest Service program in the Tongass National Forest undermines responsible forest management. This would, for the first time ever, displace a scientific and public process with specific direction from Congress- This would be the first time that Congress ham directed the Forest Service to use a particular forest management plan. That means the Forest Service would have to ignore over 6,000 public comments that it has received on this plan. It also ignores the scientific research that has been done on this plan since its original publication. The result is that logging companies would harvest timber in some of the most environmentally sensitive areas of the Tongass. This could, in turn, lead to legal challenges that could delay the whole program, cause court intervention to halt logging and put timber-related jobs at risk.

Department of Energy

The Administration opposes funding the clean Coal Technology program at $140 million over the request, particularly at the expense of higher-priority needs such as Energy Conservation. These additional funds will not be obligated in FY 1996 since there is approximately $1 billion in unobligated funds in the account.

The Administration strongly opposes the Committee's overall 38-percent reduction to the Energy Conservation request, which would seriously disrupt several high-priority initiatives. The Committee's 40-percent cut in the State Grants program would mean that 40,000 to 50,000 low-income homes would not be weatherized and would greatly hinder implementation of the State block grants initiative. The 37-percent cut in Energy conservation research and development would make meeting climate change and greenhouse gas reduction goals almost impossible, would compromise industry partnerships aimed at improving the energy efficiency of buildings and industry, and would seriously jeopardize the Partnership for a New Generation of Vehicles program.

AmeriCorps

The Administration objects to language included in the Committee-reported bill that would prohibit the use of funds provided in the bill for AmeriCorps national service projects. Although it has been in existence for less than a year, the AmeriCorps program has had remarkable success in terms of providing national service opportunities. For example, at the Everglades-South Florida project, 110 AmeriCorps members have installed, calibrated, and placed in operation 30 of the 40 planned water monitoring stations, saving $250,000 annually. The Senate is urged to delete this language from the bill.

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

Attachment

Attachment (Senate Floor)

ADDITIONAL CONCERNS

H.R. 1977 — INTERIOR AND RELATED AGENCIES APPROPRIATIONS BILL, FY 1996

(AS PASSED BY THE SENATE COMMITTEE)

The Outer Continental Shelf

The Administration strongly supports the Committee's decision to reinstate the long-standing legislative moratoria on oil and gas leasing and drilling on certain lands of the Outer Continental Shelf (OCS). Maintaining these moratoria will protect the environment and economies of California, Florida, the Pacific Northwest, Alaska, and other coastal States. It will also aid Administration efforts to resolve disputes involving OCS policy and base that policy on sound science protecting America's sensitive coastal ecosystems.

Department of the Interior

The Administration supports the Committee's decision to increase funding for science programs within the Department of the Interior. The Natural Resource Science Agency, the U.S. Geological Survey, and the Bureau of Mines provide key research and analysis on natural resource issues for land and resource managers within Federal, State, and local agencies.

The Administration does not support the Committee's action that would underfund natural resource protection and land management operations in the National Park Service (NPS), Bureau of Land Management, and Fish and Wildlife Service. Operating programs in these three bureaus would be reduced $170 million, or seven percent, below the request.

The Administration opposes congressional add-ons for unrequested, low-priority items, such as the Water Resources Research Institutes, at the expense of higher-priority needs. The Committee added $50 million for land acquisition and construction projects not requested by the Administration, including $24.9 million for 16 add-on NPS construction projects, many of which have no priority for construction and a few which have no planning completed.

The Administration opposes the 21-percent reduction to the Abandoned Mine Lands Reclamation program managed by the Office of Surface Mining (OSM). This reduction would impede the ability of OSM to respond to emergencies, such as mudslides and subsidence, that threaten the safety of coal field residents. The 54-percent reduction in OSM's fee compliance program would jeopardize the collection of over $240 million in reclamation fees.

Section 2477 of the Revised Statutes (RS 2477)

The Administration objects to the moratorium on implementing Interior's final regulation to resolve RS 2477 disputes. This regulation would provide a process to resolve legal questions concerning rights-of-way on public lands. A moratorium would maintain the status quo and uncertainty about which rights-of-way represent valid claims.

Forest Service. Department of Agriculture

The Administration commends the Senate for restoring funds for construction, which are needed to rehabilitate decaying infrastructure and improve trails and facilities on National Forest lands and for land acquisition. However, the elimination of funding for the Stewardship Incentives Program would cause a subsequent loss of leveraged funding from private landowners and States of $27 million. This would curtail the implementation of stewardship practices, such as reforestation and timber stand improvements, on thousands of acres of non-industrial private forestlands. The Administration urges the Senate to reallocate funds for higher priority programs, such as the Stewardship Incentives Program.

Department of Energy

The Administration supports the Committee's decision to eliminate section 319 of the House-passed bill, but objects to the revised section 320. The revised provision would Prevent the establishment of efficiency standards for fluorescent lights, which would cost consumers millions of dollars.

Cultural Agencies

The Administration commends the Committee for restoring funding for the Smithsonian's National Museum of the American Indian. These funds are needed to ensure timely construction and to maintain the safety of many artifacts that have been stored in substandard conditions.

The Administration opposes the drastic cuts in funding for the arts and humanities and museum services recommended by the Committee. The National Endowment for the Arts (NBA), the National Endowment for the Humanities (NEH), and the Institute for Museum Services (IMS) play an important role in the preservation of American artistic and cultural heritage and expression. The NEA ensures that arts programs can be brought to a wider audience, including inner-city youth; major research and educational projects depend on support from the NEH; and the IMS provides critical resources to small and rural museums. In addition, these agencies have a positive impact on regional economies and in leveraging private funds for the Federal funds invested.

Objectionable Provisions

The Administration objects to several provisions, which seek to micromanage agency activities and impede the ability of the agencies to accomplish their work efficiently and effectively. Some specific concerns related to these objectionable provisions follow:

Refuge Management Restrictions. The Administration objects to the Committee's attempt to micromanage specific National wildlife Refuges. Language overturning the Department's pesticide use policy on two refuges in northern California would actively undermine the conservation purpose of these refuges by allowing the use of pesticides on lands leased for agriculture that have been documented as killing migratory birds and endangered species and impairing the reproductive ability of certain species. This language would increase the risk of pesticide-related deaths to several species, including bald eagles and waterfowl.

Interference with Tribal Self-Governance. The Administration objects to language that would penalize self-governance tribes in Washington state for asserting their rights in disputes with non-tribal owners of land within reservations. The language would unfairly preclude settlement of such disputes through dispute resolution mechanisms open to all citizens. The Department of the Interior is involved in negotiations with the State of Washington, the Lummi Tribe, and private property owners to resolve the water dispute on the Lummi reservation. This language would undermine the dispute resolution process.

Restrictions on Restructuring. The Administration objects to restrictions on the distribution of Bureau of Mines resources that would have the effect of overturning the long-planned streamlining of the Bureau, which was a recommendation of the National Performance Review. The Administration also objects to restrictions on the implementation of the Forest Service's restructuring plans which have also resulted from the National Performance Review. These streamlining efforts would help to increase efficient agency operations and effective service.

Infringement on Executive Authority

There are several provisions in the Committee-reported bill that purport to require Congressional approval before Executive Branch execution of aspects of the bill. The Administration will interpret such provisos to require notification only, since any other interpretation would contradict the Supreme Court ruling in INS vs. Chadha.

General Provisions

The Administration objects to section 317 of the Committee- reported bill on the ground that this provision merely restates the obligation of officials to act within the law, and so does not accomplish anything except to create confusion as to its meaning.