Statement of Administration Policy: H.R. 3592 - Water Resources Development Act

(House)
(Shuster (R) PA and three cosponsors)

The Administration is committed to enactment of a responsible Water Resources Development Act (WRDA) that is consistent with current budget realities; includes authorization of only new high-priority projects; increases local cost-sharing; and achieves other program reforms consistent with environmental protection goals. The Administration has serious concerns, however, regarding the cost of this bill, and urges the adoption of additional program reforms.

H.R. 3592 would authorize approximately $4.9 billion in total costs for new Corps of Engineers projects and programs, of which $3.6 billion would be Federal appropriations. Under existing Federal budget constraints, actual appropriations for ongoing Corps construction projects and priority new starts are likely to be approximately $1 billion annually for the foreseeable future. In fact, budget constraints have already caused scheduled completion dates of most ongoing projects to be delayed. The authorization of projects in H.R. 3592 that have little likelihood of receiving Federal funding would mislead local communities that expect the Corps to begin work on their projects within a reasonable period.

During further congressional consideration of H.R. 3592, the Administration will seek to limit project authorizations to a more realistic Federal funding level. Moreover, such project authorizations generally should be limited to those within the Corps' purview that have completed Administration review and are likely to be considered for appropriations before the next WRDA legislation is considered by the 105th Congress.

Washington Aqueduct

The Administration supports a complete and final transfer of ownership and responsibility for the Washington Aqueduct water treatment system to a non-Federal public authority. To facilitate this transfer, the Administration is willing to support, for an interim period, construction expenditures and financing measures that are necessary to protect public safety and to comply with Federal environmental laws.

Program Reforms

The Administration appreciates the Committee's efforts to authorize several program reforms included in the Administration's WRDA proposal. These include: (1) cost-sharing for dredged material disposal facilities; (2) expanding the Corps program to provide planning assistance to States; (3) authorizing the Secretary to carry out small ecosystem restoration projects; and (4) expanding Section 1135 authority to restore environmental quality when operation of a Corps project has contributed to an area's degradation.

The Administration urges Congress to make additional WRDA reforms and improvements to ensure an appropriate direction and focus for Corps water resources projects and programs. These changes include:

— authorizing the Administration's Everglades and South Florida Ecosystem Restoration proposal;

— authorizing additional reforms contained in the Administration's WRDA legislative proposal. The Administration appreciates the Committee's efforts to reform flood control cost sharing, but urges Congress to work towards a goal of 50% FederaI/50% non-Federal cost sharing of the construction of structural flood control projects;

— applying any project cost sharing reforms to all projects where construction has not begun;

— eliminating proposed changes to the "ability-to-pay" provisions that could increase the Federal cost share of flood control projects;

— eliminating provisions that inappropriately change project evaluation standards. In particular, provisions that direct the Corps to: (1) take regional and local benefits into consideration when justifying shore protection projects while other Corps projects must be justified on national benefits; and (2) consider the monetary value of the loss of life in justifying flood control projects, which creates problematic policy issues;

— retaining current authority for the Corps to provide technical assistance for environmental infrastructure projects, but eliminating the expansion of these authorities to cover design and construction costs, which should continue to be a local responsibility;

— eliminating directives concerning the regulation of the Missouri River mainstem. The Corps and the basin States are currently reviewing the water control manual and seeking ways to resolve this conflict of competing interests; and

— eliminating unnecessary project authorizations under the Continuing Authorities Program and authorizations that allow projects to exceed the cap on a project's cost;

— eliminating the provision directing placement of a Corps hopper dredge in ready reserve status. The Corps has a study underway to determine the appropriate minimum dredge fleet, and it should be completed before making this decision. In addition, this provision would place added demand on limited Federal funds.

Pay-As-You-Go-Scoring

H.R. 3592 would affect direct spending and receipts, and is therefore, subject to the pay-as-you-go (PAYGO) requirement of the Omnibus Budget Reconciliation Act of 1990. The preliminary OMB PAYGO estimate is that the bill would increase receipts by less than $500,000 for each of FYs 1997-2002. Final scoring of this legislation may deviate from this estimate.