Statement of Administration Policy: H.R. 3662 - Department of the Interior and Related Agencies Appropriations Bill, FY 1997

(House Rules)
(Sponsors: Livingston (R), Louisiana, Regula (R), Ohio)

This Statement of Administration Policy provides the Administrations views on H.R. 3662, the Department of the Interior and Related Agencies Appropriations Bill, FY 1997, as reported by the House Appropriations Committee.

The Administration has previously communicated its strong objection to the overall discretionary funding level assumed in the House- and Senate-passed Budget Resolutions. The 602<b) allocation provided for this bill would reduce discretionary budget authority by $0.8 billion, or six percent, from the President's request of $12.9 billion and $0.7 billion, or six percent, from the FY 1996 level, including one-time funding for emergencies and special items. Actions proposed by the Committee to achieve this restrictive spending level include reductions in high-priority initiatives that would adversely affect important environmental, Native American, and energy efficiency programs. As a result of this, and for other reasons discussed below, the Secretary of Energy and the Secretary of the Interior would recommend that the President veto the hill in its present form.

It is unfortunate that the Committee has chosen, once again, to include objectionable language riders, particularly those related to the environment. For example, the Administration strongly objects to the language provision concerning the designation of critical habitat for the endangered marbled murrelet on private lands in California. The provision adopted by the Committee would adversely affect the Administration's efforts to achieve balanced implementation of the critical habitat designation for this species and would set a dangerous and unsupportable precedent 'that would likely lead to costly and time -consuming litigation.

The Administration strongly opposes reductions of $285 million, or 18 percent, from the President's request for the National Park Service (including Everglades funding and full upfront funding for Elwha River, Washington, restoration). This shortfall would deny funds to meet the growing demand for visitor services, .park maintenance, and resource protection and fails to provide critical funding needs associated with. Everglades/South Florida ecosystem restoration. The Administration strongly objects to large reductions from the President's request in other programs critical to overall effective resource management, including Fish and wildlife Services (FWS) endangered species programs (20 percent), and funds requested for the Pacific Northwest Forest Plan implementation (24 percent) . The Administration strongly opposes the disproportionate reduction to Department management. In an area where FTEs have already been reduced by one-quarter, the additional cuts of nine percent below the President's request would affect the ability of the Department to clear testimony in a timely way and impact Department management functions in significant ways.

The Administration also strongly opposes the Committee's reductions to programs serving Native Americans. Interior's Bureau of Indian Affairs (BIA) would be reduced by $243 million, or 14 percent, below the President's request, impeding the ability of the BIA and tribes to meet critical tribal needs and undermining needed trust fund management reform efforts, particularly expedited upgrading of trust fund accounting systems. The Indian Health Service would be reduced by $167 million from the request, which could restrict the provision of important health services and may limit implementation of the Indian Self-Determination Act to its fullest extent. The Department of Education's Indian Education program, held at the FY 1996 level, would be reduced $29 million, or 36 percent, below the President's request, reducing education services to the 90 percent of Indian children who attend public rather than BIA-sponsored schools.

The Administration also strongly opposes the language provision adopted by the Committee that would prohibit the BIA from taking land into trust for any tribe that had not entered into a binding agreement with the State regarding the tribe's collection and payment of State and local sales and excise taxes on retail purchases made on that land by non-tribal members. This provision would undermine tribal sovereignty and the ongoing government-to-government cooperation currently underway between a number of tribes and States that have voluntarily negotiated, or are currently negotiating, joint taxation agreements to accommodate the needs and rights of each party.

In addition, the Administration strongly objects to the reduction of $235 million in Energy Conservation -- a reduction of 33 percent from the President's request of $715 million to a net level of $480 million. This level is $55 million, or 10 percent, below the already damagingly low FY 1996 net appropriation of $535 million. Energy Conservation programs not only work to improve society's energy efficiency -- they also provide a successful means of pollution prevention. The Committee's reductions of over 30 percent in clean industrial technologies, energy-efficient building technologies, and fuel- efficient vehicles would severely damage the Administration's Climate Change Action Plan and Partnership for a New Generation of Vehicles. Potential impacts include the failure to reduce the equivalent of an additional 30 million metric tons of carbon being emitted in the year 2000 and significant amounts of nitrogen oxides, sulphur oxides, and particulates, - damage to partnerships with industry that reduce the costs of regulatory compliance; and the loss of several hundred million dollars per year in consumer and industry energy savings.

A key factor in achieving consumer energy savings is the Department of Energy's (DOE's) appliance efficiency standards program, a program that is being revised to address industry concerns. The Administration would strongly oppose any effort to extend the current one-year moratorium on the issuance of standards. In addition, the Administration is opposed to-the restrictions in the Committee Report that could block the development of both appliance and building standards.

The Administration opposes the Committee's $55 million reduction in DOE's low-income home weatherization program --a cut that would mean that almost 30, 000 fewer families would receive home weatherization assistance this winter. A very short-sighted reduction in the Committee mark is the 50-percent cut to the request for the Federal Energy Management Program, a program that has as its goal saving the government money by reducing energy costs. This reduction would lead to increased Federal operating costs in the future. The Administration reemphasizes its support for the $500 million rescission and deferral proposed for Clean Coal Technology included in the FY 1997 request. If the Congress does not act, $138 million would become available for project activities that do not need additional funding in FY 1997.

The Administration is concerned that the level of funding provided for Forest Service (USDA) fire suppression would be inadequate to meet rising wildfire suppression costs. The Committee bill includes $412 million for fire pre-suppress ion and suppression activities, significantly below the FY 1996 enacted- to-date level of $485 million and the President's request of $495 million.

The Administration objects to the Committee's low levels of funding for the National Endowment for the Arts (NEA), the National Endowment for the Humanities (NEH), and the Institute of Museum Services (IMS). The funding levels proposed by the Committee for NEA and NEH represent about a 40-percent reduction for both agencies from the FY 1995 enacted levels and would severely jeopardize their ability to provide important cultural, educational, and artistic programs for communities across America. The Administration urges the House to approve funding for the NEA, NEH, and IMS at the levels proposed in the President's budget.

In addition, the Administration strongly opposes the several language provisions adopted by the Committee that carry forward objectionable provisions from the 1996 Omnibus Consolidated Rescissions and Appropriations Act, including those relating to the Mt. Graham (Arizona) Red Squirrel, restrictions on the promulgation of regulations concerning R.S. 2477 rights of way on public land, and Alaska subsistence fishing. Moreover, the Administration objects to the Committee's failure to repeal the objectionable Lummi (Washington) Native Americans provision, and the new provision intended to prohibit redesign efforts associated with the closure of Pennsylvania Avenue.

In addition to the concerns discussed above, the Administration has additional concerns with the bill that were detailed in a June 12th letter to the House Appropriations Committee.