DEPARTMENT OF THE INTERIOR
The President’s Proposal:
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Fulfills commitments to
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fully fund the Land and Water Conservation Fund;
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eliminate the backlog of repairs in our National Parks by
2006; and
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replace and repair Bureau of Indian Affairs schools and improve
the quality of education for American Indian children.
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Launches the Cooperative Conservation Initiative to protect
and conserve the environment through partnerships;
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Supports, at record levels, major upgrades to our National
Wildlife Refuges;
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Fully funds Indian trust reform efforts in the Office of the
Special Trustee and the Bureau of Indian Affairs;
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Significantly advances the protection of threatened and endangered
species and their habitat through cooperation and partnerships; and
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Encourages the establishment of a Royalties Conservation Fund
to devote royalties from energy production to land conservation and the reduction
of maintenance backlogs on public lands.
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Department of the Interior
Gale
Norton, Secretary
www.doi.gov 202–208–7351
Number of Employees:
69,718
2002 Spending: $10.3 billion
Organization: Eight bureaus: National Park Service,
Bureau of Land Management, Fish and Wildlife Service, Bureau of Indian Affairs,
Minerals Management Service, Office of Surface Mining, U.S. Geological Survey,
and Bureau of Reclamation.
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The Department of the Interior (DOI) manages over 507 million acres
of land (roughly one-fifth of the land area of the United States), 700 million
acres of subsurface minerals, and the nation’s Outer Continental Shelf.
DOI protects much of the nation’s natural and cultural resources, including
providing for their responsible use, and serves as the largest supplier and
manager of water in the 17 western states. DOI is responsible for meeting
many of the government’s trust responsibilities to Indian tribes and
affiliated island communities. The agency also disseminates U.S. earth science
information and research findings to the public.
Overview
The nation’s vast lands, waters, minerals, fish and wildlife,
and other natural and cultural resources provide both social and economic
benefits to our population. Careful management of these resources is required
to ensure they are used in an environmentally responsible manner.
DOI’s activities largely fall within four broad categories:
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Conservation (such as wilderness protection, habitat conservation,
and historic preservation);
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Recreation (such as hiking, hunting, bird-watching, and camping);
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Energy and Other Resource Development (such as development
of oil, gas, coal, and other minerals, as well as cattle grazing and timber
production); and
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American Indian programs (including Indian education and trust
fund management).
Major units include the 385 National Parks, 538 National Wildlife Refuges,
70 National Fish Hatcheries, 406 hydroelectric facilities and reservoirs,
and 264 million acres of Bureau of Land Management (BLM)-administered public
lands. DOI also manages trust funds and assets for more than 300 of the 558
American Indian tribes.
Improving management and performance is a common theme throughout the
2003 President's Budget. This chapter explains how the 2003 Budget will help
improve management and performance within DOI. It begins with a status report
on select DOI programs and identifies strong and weak performers. A short
section on congressional earmarks discusses how these unrequested mandates
have a tendency to detract from agency performance. The chapter then discusses
how the President's Budget helps to address performance issues in key DOI
programs. The programs discussed are separated into the four main categories
that reflect the main thrust of the agency’s work as identified above.
The chapter concludes by identifying how DOI will address the specific government-wide
management and performance initiatives included in the President's Management
Agenda.
Status Report on Select Programs
The Administration is reviewing programs throughout the federal government
to identify strong and weak performers. The budget seeks to redirect funds
from lesser performing programs to higher priority or more effective ones.
In limited cases, the answer to fixing less effective or ineffective programs
is increased funding (e.g., increases for national park maintenance). In
such cases, plans are underway to improve program performance. In other cases,
an effective program—like the National Wildlife Refuge System—gets
rewarded with additional funding offset by a reduction in funds from ineffective
programs, such as the National Fish Hatchery System. The accompanying table
illustrates specific programs that have been rated by the Administration,
most of which are discussed in this chapter.
Program | Assessment | Explanation |
National Wildlife Refuge System | Effective | Effectively prioritizes identified needs; better
performance measures are still needed. |
Offshore Minerals Management | Effective | Leases for offshore development are awarded
competitively and managed efficiently. |
Wildland Fire Management | Unknown | Lacks clear direction and adequate performance
measures; program objectives have become muddled. |
National Park Service Maintenance
and Construction | Unknown | Lacks
clear implementation plan and schedule for tracking facility maintenance progress. |
National Fish Hatchery System | Ineffective | Lacks clear direction and adequate performance
measures. State or private programs may be more effective. |
Bureau of Indian Affairs School Performance | Ineffective | Academic performance of many students at BIA schools is
far below public school counterparts. |
Congressional Earmarks
DOI has, or is developing, systematic methods for determining priority
projects for funding. For instance, the Fish and Wildlife Service (FWS) has
established its Refuge Operations Needs System to monitor, manage, and prioritize
operational staffing, resource conservation, and public use needs on refuges.
The President’s Budget largely reflects the results of such analysis.
Unfortunately, congressional earmarks divert funds from these high priority
and effective programs. For example, in 2002, DOI received funding for 284
unrequested projects, totaling $323 million. Of this amount, $154 million
in earmarks were for construction and land acquisition projects alone, representing
24 percent of all funding in these two categories (see accompanying table).
While the Congress reduced its earmarking in 2002 of construction and land
acquisition projects, more still needs to be done.
Congressional Earmarks DOI Construction and
Land Acquisition Projects |
| Number | BA
in millions of dollars | Percent of Total |
2001 | 105 | 180 | 36 |
2002 | 101 | 154 | 24 |
Over the past 10 years, more than 40 percent of National Park Service
(NPS) construction project funding was earmarked for lower priorities, at
a time when national parks were struggling with a deferred maintenance backlog.
Important projects that will be further deferred in 2002 due to earmarks
include utilities and campground upgrades in Acadia National Park, preservation
work on the Lincoln Memorial, and rehabilitation of the park headquarters
building at Yellowstone National Park. For some unrequested projects, park
construction funds are not even spent on park facilities—they are simply
passed through to others; such is the case with the state-owned Palace of
the Governors in New Mexico.
The following sections discuss how the Administration is working to
improve the performance of DOI’s programs, in part by redirecting earmarked
funds to more effective uses.
Conservation
With one million visitors each year, BLM's Red Rock National Conservation Area near Las Vegas, Nevada is one of the many unparalled sites managed by DOI.
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DOI plays
a key role in protecting and preserving some of the nation’s most remarkable
natural areas and is responsible for conserving and protecting threatened
and endangered species. The President is committed to the conservation and
stewardship of our lands, watersheds, and other natural resources.
To that end, this budget addresses a long-ignored problem by refocusing
environmental stewardship on achieving results. For example, in 2003:
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FWS will restore 125,000 acres of wildlife habitat on refuges;
help prevent three species from being added to the Endangered Species list;
work to remove five more species from the list; and increase wildlife refuge
visitation to 40 million visits.
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NPS will restore over 13,500 acres of targeted parklands that
have been disturbed by development; contain or restore 102,600 acres of land
impacted by invasive plants; and rehabilitate 270 park historic structures,
bringing the total amount of park historic structures in good condition up
to 46 percent.
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BLM will conduct 50,000 acres of proactive resource inventories;
restore and protect 230 “at-risk” cultural and paleontologic sites;
implement water quality improvement projects in 14 watersheds within priority
areas; remediate 60 abandoned mines; and plug or reclaim 15 orphan wells.
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The U.S. Geological Survey (USGS) will expand data collection
and management with 15 new terrestrial and aquatic biodiversity studies to
inform land and resource management; add two more decision support systems
for ecosystem restoration in the Everglades; and develop a new web-based information
system to inform local urban development decisions in coastal areas.
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The Bureau of Reclamation (BOR) will provide approximately
2.5 million acre feet of water to conserve threatened or endangered species
and preserve, restore, or establish over 9,776 acres of wetlands habitat and
15 miles of instream or riparian habitat to offset project impacts.
The agency will increasingly rely on these and other performance measures
to guide conservation and resource management on DOI lands. In many cases,
performance measures for DOI programs are scarce or inadequate, however, the
agency has accepted the difficult task of better defining and tracking relevant
indicators.
For example, performance measures for the Wildland Fire Management program
have traditionally focused on achieving all-out fire suppression goals, regardless
of effectiveness or the impact on long-term ecological health. DOI is working
to improve its measures for this program, with a significant focus on cost
effectiveness and integration of the various parts of the fire program. (See
the Department of Agriculture (USDA) chapter for further discussion of the
DOI/USDA Wildland Fire Program.)
Partnering for Conservation
through Better Science
The Department's National Biological
Information Infrastructure (NBII) increases access to data and information
on the nation's biological resources in order to promote the use of science
as a basis for determining local, regional, and national conservation strategies.
The NBII website (www.nbii.gov) links the diverse, high-quality biological
databases, information products, and analytical tools maintained by this growing
network. Federal funding of $6 million in 2003 is expected to be matched
many times over by the more than 200 partners in the NBII network. The amount
of data accessible on the NBII site will more than double by 2003.
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Complementing this renewed emphasis on performance is an increased focus
on utilizing partnerships. By partnering with states, local governments,
conservation organizations, tribes, and interested private parties, DOI can
leverage non-federal resources to achieve more conservation for each federal
dollar spent. The federal government has a broad array of tools and programs
to fulfill its conservation responsibilities, including the Land and Water
Conservation Fund, the National Wildlife Refuge System, and the Endangered
Species Act. The following sections discuss, in greater detail, a number
of these important programs and initiatives and how the Administration is
emphasizing partnerships within these programs.
Land and Water Conservation Fund
The Land and Water Conservation Fund (LWCF) was established in 1965
to support natural resource conservation and outdoor recreation at the federal,
state, and local levels. LWCF funding in recent years has focused on acquiring
land. This past year, however, the LWCF funded two of the President’s
priorities, both of which recognize that federal acquisition is not always
the best or only way to conserve land and other natural resources. These
programs—Landowner Incentive Grants and Private Stewardship Grants—provide
new ways to cooperate with private landowners to enhance habitat for imperiled
species and encourage conservation efforts on private lands.
Innovation in Conservation
Conservation
easements can benefit fish and wildlife as well as agriculture. David Mannix
of the Mannix Brothers Ranch in Montana put it best when he said, "Agriculture
and wildlife have much in common in that agriculture needs open space to stay
in business and wildlife need open space to stay alive." The Fish and Wildlife
Service purchase of easements from the Mannix Brothers Ranch provided the
money necessary for expansion of their ranch, allowing future generations
to stay on the land. Since the land remains in private ownership, local property
taxes still flow to the local government, creating a winning scenario for
fish, wildlife, agriculture, and the local community.
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Conservation easements represent another tool in the effort to protect
and conserve land. Easements provide flexibility for landowners who are interested
in conserving their land but want to retain ownership (see accompanying box).
In some cases, conservation easements can also be more cost effective than
outright land purchases. For example, two recently acquired conservation
easements at the Fish and Wildlife Service’s Dakota Tallgrass Prairie
Wildlife Management Area in North and South Dakota were less expensive than
outright purchase of the land by 43 percent and 78 percent, respectively.
As promised, the President’s Budget fully funds LWCF at over $900
million to promote conservation in a variety of ways. This includes the programs
funded out of LWCF last year, plus an additional four conservation programs
designated to receive funding through the LWCF:
Existing LWCF Programs | Added LWCF Programs |
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Federal land acquisition
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LWCF State Grants
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State and Tribal Wildlife Grants
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Landowner Incentive Grants
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Private Stewardship Grants
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Cooperative Endangered Species Conservation Fund
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North American Wetlands Conservation Fund
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Forest Legacy Program1
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Forest Stewardship Program1
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1 Programs within USDA’s
Forest Service.
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Each of these programs has a different emphasis, but they all recognize
that partnerships encourage the stewardship of our natural resources and can
be more powerful and effective than traditional land acquisition or litigation.
For example, a dollar spent acquiring land through the North American Wetlands
Conservation Fund could leverage anywhere from one to seven dollars in additional
funding from partners.
Especially important among these programs is $200 million for LWCF state
grants, including $50 million as part of the Cooperative Conservation Initiative
discussed below. States often have a better sense than the federal government
of areas that are locally or regionally important, so the President is proposing
a 39 percent increase in these grants—the highest funding level since
1980.
Conservation Tax Credit
The President’s Budget also includes an incentive for private,
voluntary land protection through a 50-percent capital gains tax exclusion.
Private landowners who voluntarily sell land or water to a government agency
or qualified conservation organization for conservation purposes are eligible
for the exclusion. This incentive is another example of a cost effective,
non-regulatory, market-based approach to conservation.
Cooperative Conservation Initiative
We are all stewards of the land. Yet problems arise when national leaders
dictate decisions from afar, rather than building partnerships with the states,
local governments, and local citizens who are closest to the land and best
know the problems and how to fix them.
Partnerships achieve more conservation for the same investment. An
excellent example of this approach is the Cooperative Conservation Initiative
(CCI). To leverage funds and promote conservation, the CCI allocates $100
million in matching funds for natural resource conservation projects. Projects
can range from working with The Nature Conservancy to remove invasive species
from Channel Islands National Park, to working with local communities to reclaim
abandoned mine sites on public lands. Half of these funds would be allocated
through cost-shared programs between non-federal partners and DOI’s
NPS, FWS, and BLM. The other half would be distributed to states as part
of the LWCF state grant program. However, as with other LWCF programs, all
of the funds have a common goal: to get more conservation results by working
in concert with the people who know the land.
NPS Natural Resource Challenge
This initiative establishes a framework for measuring the Park Service’s
performance in preserving natural resource conditions in national parks.
The Natural Resource Challenge is designed to collect and inventory baseline
data on park resources and then identify and monitor the “vital signs”—such
as nitrogen levels in streams or populations of waterbirds—that most
effectively show changes in those resources. With an increase of $18 million
in 2003, 52 parks will have monitoring programs to measure park resource health,
and NPS will establish vital sign measures in 12 of 32 monitoring networks.
Additionally, NPS will complete all resource inventories by 2008, two years
earlier than previously planned.
National Wildlife Refuges
In 1903, President Theodore Roosevelt wrote a new chapter in conservation
when he set aside land to protect pelicans and other birds on what is now
called the Pelican Island National Wildlife Refuge in Florida. Some 95 million
acres later, the 538 refuges in the National Wildlife Refuge System (NWRS)
stand out as outstanding examples of efforts to effectively balance species
conservation with public access.
On March 14, 2003, Americans across the nation
will celebrate the Centennial anniversary of the National Wildlife Refuge
System - a milestone in the history of fish and wildlife conservation
in America.
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But the NWRS is not without its problems. Due to poor prioritization
of funding in the past and continuous expansion over many years, the refuge
system has developed a backlog of unmet operations and maintenance needs.
To address this backlog, the Fish and Wildlife Service has developed a well-prioritized
list of these needs. These needs reflect an untapped potential for improving
species protection and habitat restoration as well as enhancing public use
opportunities.
Protecting songbirds, such as this endangered Golden-cheeked warbler, is part of the Department's mission.
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The
refuge system’s centennial offers an excellent opportunity to highlight
this effective program and improve the refuge system’s performance.
The President’s Budget proposes an increase of $52 million for the
highest priority operations, maintenance, and planning needs and provides
an additional $5 million for challenge cost share programs on wildlife refuges
through the CCI. In future years, the Royalties Conservation Fund proposed
in the National Energy Policy would provide additional funds to help reduce
maintenance backlogs for refuges as well as other federal lands.
The increase for refuges in the President’s 2003 Budget will fund
a variety of activities, such as monitoring and protecting listed species
of the barrier beach ecosystem at Chincoteague National Wildlife Refuge in
Virginia, and constructing viewing decks at Balcones Canyonlands National
Wildlife Refuge near Austin, Texas to better observe endangered songbirds,
such as the Golden-cheeked warbler. These and other projects in the President’s
Budget will help ensure that, in 2003, the top priority needs of the refuge
system are met, 125,000 acres of habitat are restored, and the system is capable
of handling the projected 40 million visitors.
Endangered Species
The Department of the Interior is also charged with conserving threatened
and endangered species and their habitat. Preventing species from becoming
endangered as defined by the Endangered Species Act (ESA), improving the status
of listed species, and taking recovered species off the list are key measurements
of the success of the program. In 2001, DOI’s efforts helped to keep
five species from being listed; stabilized or improved 320 of 616 species
listed for a decade or more; and removed the Aleutian Canada Goose from the
ESA list of “threatened” species.
The 2003 President’s Budget provides $126 million for the FWS'
Endangered Species program. This funding supports the direct efforts of FWS
to implement the ESA. The budget also includes $25 million for DOI to help
carry out the “reasonable and prudent alternative” of the Columbia
River Basin biological opinion.
The Administration’s main focus on imperiled species, however,
involves working with partners to prevent listings in the first place and
to recover those already listed. The budget provides over $200 million for
such activities through various grant programs, including the Cooperative
Endangered Species Conservation Fund and the State and Tribal Wildlife, Landowner
Incentive, and Private Stewardship grant programs—the latter two of
which are Presidential initiatives. These and other programs emphasize working
with and encouraging states and landowners to protect a variety of species
and their habitat, thereby garnering matching funds and support of these conservation
efforts.
In 2003, the President’s Budget will help prevent three species
from becoming listed under the ESA, maintain or improve the status of roughly
376 listed species, and remove five species from the ESA list because of recovery
efforts. Species that may be taken off the list include the Tinian monarch
flycatcher, the Gulf coast population of the brown pelican, and the Douglas
County (WA) population of the Columbian white-tailed deer.
Recreation
Protecting and preserving land and open space provides more than just
environmental benefits: it benefits our economy as well. Outdoor recreation
has become big business in the United States, and the public lands provide
countless opportunities for many Americans to engage in healthy, wholesome
activities. Every year, more and more Americans turn to DOI’s public
lands for a sense of peace and solitude in an increasingly crowded and fast-paced
world, and recent events have only heightened this need. Much of the general
public’s exposure to the Department of the Interior comes by way of
visits to national parks, wildlife refuges, and other public lands. The number
of visits is a rough measure of recreational use of DOI lands.
Visitation to DOI sites is steadily increasing. While over 90 percent
of visitors to DOI’s public lands rated their experience as good or
very good, the quality of visits can be further improved.
In particular, national park facilities are buckling under the weight
of heavy use, while funding is stretched by the continuous addition of new
parks. Our national parks have a backlog of billions of dollars in deferred
maintenance, as evidenced by the broken toilets, washed out trails, and crumbling
roads found in many parks. Eliminating this backlog will improve the quality
of visits and encourage more visits while protecting natural resources.
Recreation and user fees have greatly helped to reduce backlogs in national
parks and other public lands, now that agencies can retain fee receipts and
spend them on priority needs. The amount of fee receipts available to agencies
has gone from less than $15 million in 1996 to nearly $200 million in 2000,
principally due to the Recreation Fee Demonstration program, which the budget
proposes to make permanent.
Fort Yellowstone jail is slowly crumbling from lack of maintenance. Water intrusion and subsequent freezing and thawing have caused half of this historic structure to erode.
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National Park Service Maintenance Backlog
The President’s Budget will make visiting our national treasures
better than ever. First, the President committed to eliminating the current
deferred maintenance backlog in national parks by 2006. This budget keeps
that promise on track. NPS funding for facility maintenance and construction
is at an all-time high (over $660 million, compared to $354 million as recently
as 1996). In the future, the proposed Royalties Conservation Fund would also
provide funds to reduce the maintenance backlog in our national parks.
But more money does not always mean the parks will get fixed faster.
Therefore, the President's proposal also takes the first step to identify
and prioritize what needs fixing and figure out a way to measure progress
for getting the job done. The Service will complete initial assessments of
park facility conditions by the end of 2003. As assessments are completed,
NPS will compile a Facility Condition Index to evaluate the status of facilities
and, starting with the 2004 Budget, measure agency performance in improving
those conditions.
Energy and Other Resource Development
In addition to scenic vistas, wildlife habitat, and recreation, our
public lands also provide critical resources such as oil, coal, minerals,
and timber for the general welfare of our nation. DOI manages these natural
resources for a strong economy, while balancing these needs with the need
for a healthy environment.
Oil and Natural Gas
The United States currently consumes about 19 million barrels of oil
a day and almost 7 billion barrels every year, of which over half is imported.
Of the oil and gas that is domestically produced, 29 percent and 35 percent
is produced on federal lands, respectively. However, over the last five years,
production on federal lands has leveled off.
The National Energy Policy proposes to expand and diversify our nation's
energy supplies. Diversity is important not only for energy security, but
also for national security. To carry out the National Energy Policy, DOI’s
Minerals Management Service (MMS) and BLM are issuing or proposing leases
on federal offshore (Outer Continental Shelf) and onshore tracts with known
or probable petroleum deposits and where safe and environmentally sound mineral
development can occur, consistent with current drilling moratoria. After
review of the bids submitted to ensure fair market value, the company with
the highest bid wins the lease and is encouraged to develop the resource as
quickly as possible or risk losing the lease.
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To ensure environmentally sound OCS oil and gas development, the MMS
seeks to limit oil spilled to 10 barrels spilled per million barrels produced.
In 2000, the actual oil spill rate was 5.35 barrels per million barrels produced.
MMS estimates naturally occurring oil seeps introduce 150 to 175 times more
oil into U.S. marine waters than do OCS oil and gas activities.
DOI is carrying out the National Energy Policy by:
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working with the Congress to authorize exploration and, if
resources are discovered, environmentally responsible development of the most
promising reserve areas within the coastal plain of the Arctic National Wildlife
Refuge;
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moving forward with Outer Continental Shelf oil and natural
gas leasing and approving exploration and development on predictable schedules;
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considering additional oil and natural gas development in
the National Petroleum Reserve-Alaska (NPR-A), which the Congress established
in 1976;
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promoting enhanced oil and natural gas recovery from existing
wells through new technology; and
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implementing economic incentives for offshore oil and natural
gas development.
Renewable Resources
DOI also manages the use of renewable resources such as rangeland forage,
timber, and renewable energy sources such as hydroelectric, wind, solar, biomass,
and geothermal power. The Bureau of Land Management administers over 21,000
grazing allotments, covering 161 million acres of public rangeland, and manages
over 49 million acres of forested land for multiple uses, including supply
of timber and other forest products. For several years, BLM has struggled
with a grazing permit backlog resulting from insufficient planning and a spike
in the number of expiring permits. In 2003, BLM will process approximately
1,500 expiring grazing permits, allowing the backlog to be completely eliminated
by 2004.
With development costs declining, wind farms—like this one on BLM land near
Palm Springs, California—increasingly offer a clean, afforable alternative
to fossil fuels.
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The Bureau of Reclamation operates 58 hydroelectric plants that produce
over 10 percent (or 42 billion kWh) of the electricity in 17 states, while
the Bureau of Land Management administers geothermal leases in several high
resource areas such as Nevada and Southern California. The National Energy
Policy places a high priority on developing alternative energy sources that
may reduce our dependence on foreign oil and eventually replace fossil fuels.
Working closely with the Department of Energy, DOI is doing its part to evaluate
and remove unnecessary impediments to the development of alternative energy
on DOI lands, while ensuring that the environment is protected in the process.
The two departments recently held a joint renewable energy summit to discuss
opportunities to expand the use of renewable energy on our public lands.
(See the Department of Energy chapter for additional discussion of renewable
energy issues).
Coal
As America’s most abundant fuel source, coal is expected to remain
the dominant fuel in meeting increasing electricity demand through 2020.
Recognizing this, the National Energy Policy also calls for increased domestic
coal production. New clean coal technologies show that air pollution can
be reduced and energy efficiency increased. DOI plays a large role in domestic
coal production. In 1999, coal mined on lands controlled by DOI’s BLM
accounted for about 35 percent of domestic coal production. However, unnecessary
delays in lease application processing can be costly to businesses and may
even result in missed opportunities. Currently, the average processing time
for a coal lease application is 18 months. DOI is examining ways to expedite
permits and other actions necessary for energy-related project approvals.
The agency is also actively working to resolve disputes between coal and
natural gas producers in one of the country’s largest coal-producing
regions, the Powder River Basin in Wyoming and Montana.
American Indian Programs
DOI is responsible for fulfilling the federal government’s trust
responsibilities to Native Americans and promoting self-determination on behalf
of tribal governments, American Indians, and Alaska Natives.
Enhancing Educational Opportunities for American Indian Children
Gila Crossing Day School in Laveen, AZ, serving
241 students in grades K through 6, is a success story for tribally operated
schools. Gila Crossing’s reforms include: standards-based math, after-school
tutoring, guided reading, and an extended school year.
Over a
period of three school years, student proficiency in math skills jumped from
33 percent to 63 percent, while language skills proficiency soared from 26
percent to 90 percent. Enrollment increased by 73 percent, while daily attendance
also increased from 89 percent to 97 percent.
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Through treaty requirements and federal statutes, the federal government
has a responsibility to ensure American Indian children have access to quality
educational opportunities through specific Indian education programs. The
Bureau of Indian Affairs (BIA) operates, either directly or through tribal
grants and contracts, 185 schools serving more than 48,000 students (approximately
10 percent of all Indian students in the country in elementary and secondary
schools) in 23 states. While there have been some success stories, such as
the Gila Crossing Day School, a recent General Accounting Office study found
that “the academic achievement of many BIA students…is far below
the performance of students in public schools.” The President's 2003
Budget places new emphasis on improving academic performance at BIA schools
and continues the 2002 initiative to eliminate the school maintenance and
repair backlog.
Academic Performance at BIA Schools
The President proposes to use competition to improve the worst performing
BIA-operated schools and to enhance the opportunities for American Indian
children to succeed in learning. The accompanying table illustrates the dramatic
differences between student performance at BIA schools and public schools
in the critical skills of reading, writing, and math in the grades tested.
While external factors do contribute to poor academic performance, the time
has come to reevaluate BIA’s role in the education of American Indian
children. Following tribal consultations, the BIA will solicit private entities
to manage those schools that the tribes do not elect to contract themselves
through self-determination grants.
AVERAGE STUDENT
PERFORMANCE State Assessment Tests in 1999-2000 School Year |
State | BIA Schools | | Public Schools | Measure1 |
Low | High | | Low | High |
North Dakota | 25 | 33 | | 64 | 71 | Percentile Range |
South Dakota | 25 | 28 | | 60 | 67 | Percentile Range |
Arizona | — | 27 | | 15 | 71 | Percent |
Source: General Accounting Office Report O1-934
1North and South Dakota use average national percentile rankings
while Arizona uses four categories—Falls Far Below, Approaches, Meets,
or Exceeds. For Arizona, only students meeting or exceeding standards are
represented here.
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School Maintenance and Repair Backlog
In 2001, the backlog of BIA school maintenance and repair work was pegged
at about $942 million. The President is committed to eliminating the backlog
by the end of 2006. The 2003 Budget provides a second installment ($164 million)
for school maintenance and repairs. When it is not feasible to repair an
existing school, the entire facility will be replaced. The budget also provides
$120 million to build six replacement schools, leaving only three schools
on the BIA’s current priority replacement list.
Indian Trust Fund Management
The President’s 2003 Budget provides a significant increase of
$84 million to remedy deficiencies in trust programs and meet the mandates
of a U.S. District Court in the Cobell v. Norton case.
For decades, Indian trust funds have lacked modern accounting systems, reliable
management systems, and effective financial control systems. In December
1999, a federal judge ordered the agency to correct the breaches of trust
responsibilities and file progress reports on trust reforms. Secretary Norton
has undertaken actions to strengthen DOI’s trust reform efforts.
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BIA manages 56 million acres of Indian trust lands owned
by tribes and their members. Over 110,000 oil, gas, timber, and other leases
generate about $1.1 billion in annual income for the Indian landowners. The
Office of the Special Trustee for American Indians (OST) is responsible for
the distribution of $800 million each year to 1,400 tribal trust accounts
and $300 million each year to about 285,000 individual trust accounts. The
OST budget includes $161 million, a $49 million increase, to implement modern
land title, leasing, and accounting systems; address probate backlogs and
improve risk management analyses; consolidate fractionated ownership of trust
lands; and undertake other related trust management improvements, such as
improving information technology (IT) security. BIA’s budget includes
$153 million, a $35 million increase, to further expand trust program operations
and services at headquarters, regional, and tribal levels. DOI is continuing
to make changes to its trust reform strategy, organization and management,
and improvement projects in response to recent court reports and independent
consultant reviews.
Strengthening Management
Consistent with the President’s Management Agenda, DOI intends
to improve management and performance in 2003. One of the first steps is
to address the government-wide management and performance initiatives identified
in this agenda.
As DOI’s performance measures reflect, it is charged with diverse
responsibilities. The agency acts as steward for vast amounts of federal
land, collects billions in oil and gas leasing revenues, serves as the trustee
for Native Americans and Territorial Island communities, and contributes to
a vast array of scientific disciplines.
Because of its large geographic domain and varied missions, DOI's bureaus
have tended to go their own way—creating many management challenges
for DOI as a department. Although DOI has centralized some management systems
such as time and attendance, financial accounting, and contracting, the agency
does not have standardized performance measures or program cost definitions.
DOI plans to centralize more of its administrative operations to gain cost
savings and increase the use of common standards. DOI will also develop an
integrated financial and performance system, and will revise its strategic
plan so that it is based on priority management goals and measures, rather
than a loose collection of bureau plans.
The following table provides a snapshot of DOI’s 2001 status for
each of the five government-wide management initiatives along with descriptions
of each initiative and the steps DOI is taking to improve in these areas.
Initiative | 2001 Status |
Human
Capital—DOI, like most other federal agencies, faces human
capital-related challenges such as an aging workforce with retirements expected
in critical skill areas. For example, DOI's Fish and Wildlife Service expects
40 percent of its 201 law enforcement officers to retire by the end of 2005.
The agency will develop a comprehensive five-year plan to coherently guide
human capital management decisions to address these challenges. The plan
will identify specific organizational changes to address competitive sourcing,
skill-mix changes, streamlining and other management objectives. In addition,
DOI will pursue co-location of BLM and USDA Forest Service field offices and
conduct a Regional Office study for the FWS to help assess potential areas
where it can become more citizen-centered. | • |
Competitive
Sourcing—To meet the Administration's goal of completing
public-private or direct conversion competition of federal employees performing
commercial functions, DOI plans to compete or directly convert no fewer than
1,015 positions (five percent) in 2002. An additional 2,320 positions (10
percent) will be competed or directly converted in 2003 for a total of 3,335
positions, or 15 percent of the agency's commercial activities workforce.
To provide guidance, assistance, and oversight of this effort, the Department
is launching a Center for Competitive Sourcing Excellence in 2002 and has
designated a senior coordinator for this initiative. DOI’s plan has
been offered as a model for other agencies to use in the development of their
competition plans. | • |
Financial
Management—Due to problems with its tribal trust accounting,
DOI cannot provide assurances that its trust management systems and internal
controls meet federal standards. All other DOI components, however, do meet
these standards, and the department did receive a clean audit opinion. DOI
has developed a High Level Implementation Plan to complete the trust accounting
systems and implement the internal controls required to correct its trust
accounting weaknesses. Additionally, DOI will finish an enterprise architecture
study to launch a new financial system enabling it to better integrate performance
and budget information. | • |
E-Government—Historically,
DOI has made major information technology (IT) investments without thorough
analysis of realistic cost, schedule, and performance goals for new acquisitions.
As a result, DOI puts large sums of public funds at high risk for failure
and does not comply with either the Paperwork Reduction Act or the Clinger-Cohen
Act. For example, the agency does not fully develop business cases for major
IT investments and lacks an enterprise architecture to make Department-wide
IT investment decisions. However, DOI is committed to improving its review
and approval of IT investments centrally, and has already hired a contractor
to survey DOI's IT environment and make recommendations, due in June 2002,
that will guide future investment decisions. DOI’s Inspector General
is reviewing the Department's IT investment process as well. DOI has taken
a government-wide leadership role as managing partner for an intergovernmental
Recreation One-Stop project and a similar One-Stop project for geospatial
information. | • |
Budget/Performance
Integration—DOI cannot monitor with sufficient precision
the cost and effectiveness of many of its programs. For example, DOI does
not know how much it costs to house its park rangers or reservation school
teachers. Many programs, such as wildland firefighting and national park
facilities maintenance, lack measures to evaluate interim progress towards
long-term outcomes. Performance measures for USGS are particularly weak.
DOI's operating and financial systems are not linked, and the Department
has few agency-wide performance measures for program analysis. The agency
is revising its Strategic Plan to use DOI-wide measures and is pursuing activity-based
costing to better track full costs. | • |
Department of the Interior
(In millions of dollars)
| 2001 Actual | Estimate |
2002 | 2003 |
| | | |
Spending: | | | |
Discretionary Budget Authority: | | | |
National Park Service | 2,346 | 2,388 | 2,422 |
Bureau of Indian Affairs | 2,168 | 2,245 | 2,269 |
Bureau of Land Management | 2,109 | 1,911 | 1,875 |
Fish and Wildlife Service | 1,342 | 1,308 | 1,316 |
U.S. Geological Survey | 918 | 950 | 904 |
Bureau of Reclamation/Central Utah Project | 835 | 891 | 867 |
Office of Surface Mining | 320 | 311 | 284 |
Minerals Management Service | 149 | 167 | 181 |
Office of Special Trustee for American Indians | 120 | 112 | 161 |
All other programs | 206 | 220 | 231 |
Subtotal, Discretionary budget authority adjusted 1 | 10,513 | 10,503 | 10,510 |
Remove contingent adjustments | -248 | -267 | -274 |
Total, Discretionary budget authority | 10,265 | 10,236 | 10,236 |
| | | |
Emergency Response Fund, Budgetary Resources: | | | |
National Park Service | 3 | 57 | — |
Bureau of Reclamation | — | 30 | — |
All other programs | — | 2 | — |
Total, Emergency Response Fund, Budgetary resources | 3 | 89 | — |
| | | |
Mandatory Outlays: | | | |
Oil and Gas Receipts from Outer Continential Shelf
lands | -7,195 | -3,806 | -2,832 |
All other programs | -772 | 94 | 306 |
Legislative proposal (OST Trust deficiency payments) | — | — | 7 |
Subtotal, Mandatory outlays adjusted 1 | -7,967 | -3,712 | -2,519 |
Remove contingent adjustments | -8 | -9 | -9 |
Total, Mandatory outlays | -7,975 | -3,721 | -2,528 |
| | | |
Credit activity: | | | |
Direct Loan Disbursements: | | | |
American Samoa direct loan | 13 | 6 | — |
Bureau of Reclamation direct loans | 25 | 48 | 9 |
Subtotal, Direct loan disbursements | 38 | 54 | 9 |
| | | |
Guaranteed Loans: | | | |
Indian loan guaranteed program | 52 | 65 | 55 |
Total, Guaranteed loans | 52 | 65 | 55 |
| | | |
| | | |
1 Adjusted to include the full share of accruing
employee pensions and annuitants health benefits. For more information, see
Chapter 14, "Preview Report," in Analytical Perspectives. |
|