June 27, 2000
(House)
H.R. 4733 - ENERGY AND WATER DEVELOPMENT APPROPRIATIONS BILL, FY 2001
(Sponsors: Young (R), FL; Packard (R), CA)
This Statement of Administration Policy provides the Administration's views
on the Energy and Water Development Appropriations Bill, FY 2001, as
reported by the House Committee. Your consideration of the
Administration's views would be appreciated.
The President's FY 2001 Budget is based on a balanced approach that
maintains fiscal discipline, eliminates the national debt, extends the
solvency of Social Security and Medicare, provides for an appropriately
sized tax cut, establishes a new voluntary Medicare prescription drug
benefit in the context of broader reforms, expands health care coverage to
more families, and funds critical investments for our future. An essential
element of this approach is ensuring adequate funding for discretionary
programs. To this end, the President has proposed discretionary spending
limits at levels that we believe are necessary to serve the American
people.
Unfortunately, the FY 2001 congressional budget resolution provides
inadequate resources for discretionary investments. We need realistic
levels of funding for critical government functions that the American
people expect their government to perform well, including education,
national security, law enforcement, environmental protection, preservation
of our global leadership, air safety, food safety, economic assistance for
the less fortunate, research and technology, and the administration of
Social Security and Medicare. Based on the inadequate budget resolution,
this bill fails to address critical needs of the American people.
The Administration appreciates efforts by the Committee to accommodate
certain Presidential priority programs within its 302(b) allocation.
However, the Committee allocation is $0.9 billion below the President's
program level request and the Committee bill includes significant
reductions in a number of high priority programs. The Administration
strongly objects to the Committee's unacceptable $320.0 million cut to the
Department of Energy's Office of Science, which would force cancellation of
the Spallation Neutron Source project, and its $106.0 million cut to the
Solar and Renewable Energy program. These concerns and others are
discussed below.
Department of Energy
The Administration is concerned with the large reduction in the House
Committee bill for key priorities of the Department of Energy (DOE). The
bill provides $850.0 million less than the President's request for DOE's
programs, which would significantly reduce vital programs in science,
energy research, and other activities. Specific funding issues include:
- Science. The Administration strongly opposes the severe cuts
made by the Committee in basic science programs across the government,
including the Committee's $320 million cut to energy science programs,
10 percent below the requested level. The Administration strongly
opposes the $161.9 million reduction in construction funding for the
Spallation Neutron Source (SNS), a 62 percent cut. When completed,
the SNS will provide a world-class tool for materials sciences, a
field that has many economically important applications. The
Department has met each of the management reforms the House included
in report language last year. Congress should now do its part and
fully fund the SNS construction project. The Committee mark of $100.0
million would force the cancellation of the project and require its
immediate closeout.
The Administration opposes the elimination of $30.0 million in
Basic Energy Sciences and Biological and Environmental Research for
increased operating time and instrumentation at the Department's
synchrotron light and neutron sources. These facilities are operated
by the Department of Energy for the use of the entire research
community, including researchers funded by the National Institutes of
Health, the National Science Foundation, universities, and private
industry.
The Administration strongly opposes the $45 million cut in the
President's budget request for Mathematical, Information, and Computer
Sciences and funding for high end applications for modeling and
simulation. This cut will seriously hamper critical programs that are
a core feature of the R&D agenda recommended by the President's
Information Technology Advisory Committee. The Administration also
believes that the Committee has been shortsighted in not providing
requested funding for nanotechnology. The Department of Energy has
been a leader in the development of nanostructured materials and is
uniquely qualified to contribute advances in the design and synthesis
of materials at the atomic level. Nanoscience has been designated as
one of the nation's top science and technology priorities by external
advisory committees. The Committee also did not provide the funds
requested for the microbial cell project. Neglecting to support these
cutting-edge scientific research areas jeopardizes our national
capacity to sustain scientific and technical supremacy.
- Solar and Renewable Energy. The Committee's mark for solar and
renewable energy falls $11.7 million below the current appropriation
and is $106.0 million, or 23 percent, below the request, providing
essentially none of the Administration's requested increases or
initiatives. Many renewable energy technologies, including wind,
biofuels, photovoltaics and solar thermal, are at a crucial stage in
their development, requiring scale-up and a real push toward
commercialization. With mounting evidence of global climate change
and concern over oil prices, the Committee's net cut is shortsighted
and undermines the Nation's effort to implement a 21st century energy
policy. Technologies that are just beginning to see real market
acceptance would be held back, and opportunities to develop farm-based
products that can substitute for petroleum products would be delayed,
to the detriment of America's consumers.
- Strategic Petroleum Reserve and Home Heating Oil Reserve. While
the Administration supports reauthorization of the Energy Policy and
Conservation Act (EPCA) and the creation of a Northeast Heating Oil
reserve, the inclusion of the text of H.R. 2884 on the Energy and
Water Appropriations bill highlights the difficulty the Administration
has had in getting the Congress to act on measures that are important
to our national energy security. Since the House passed H.R. 2884 on
April 12, 2000, it has been pending in the Senate for more than two
months. In addition, a simple reauthorization of the strategic
petroleum reserve has languished during this Congress since last year.
The Administration is seeking improvements to H.R. 2884 that would
create a realistic trigger mechanism for the release of heating oil
from the Northeast Heating Oil reserve, ensure compliance with
relevant environmental reviews, and address the issue of the purchase
of marginal well oil production at above market prices.
- Environmental Management. The Administration objects to the
$256.0 million reduction taken against the Tank Waste Remediation
System. Increases over the Committee mark are needed to support
termination costs and to continue design activities until a new
procurement can be conducted to select another contractor. The
Administration opposes the $43.0 million reduction to the Uranium
Enrichment Decontamination and Decommissioning Fund, which the
Committee transfers to a new Uranium Facilities Maintenance and
Remediation account. The Committee-recommended funding level would
jeopardize the Department's ability to meet its cleanup commitments at
uranium enrichment facilities in Paducah, Kentucky; Portsmouth, Ohio;
and, Oak Ridge, Tennessee. Also, DOE would be unable to accelerate
cleanup of these sites in response to recently identified threats to
the safety and health of workers, the public, and the environment. In
addition, the Administration urges the House to include the $10
million as requested to initiate cleanup activities at Moab, Utah.
- Energy Employees Compensation Initiative. The Administration
strongly objects to the Committee's decision not to fund the Energy
Employees Compensation Initiative. The $17.0 million requested is
essential to initiate an Exposure Compensation Fund to provide
compensation benefits to current and former contractor workers who
contracted beryllium diseases and radiogenic cancers as a result of
their employment with the DOE nuclear weapons program.
- Nuclear Energy Research Initiative. The Administration strongly
objects to the Committee's decision to reduce funding for the Nuclear
Energy Research Initiative by $12.5 million (36 percent) below the
request of $35.0 million. This program, which awards research grants
to laboratories, universities, industry, and consortia using an
independent peer-review process, is the only Federal research effort
dedicated to addressing the key issues affecting the future of nuclear
energy.
- Tritium Readiness. The Administration objects to the $25.0
million recommended by the Committee for accelerator production of
tritium (APT). The Department's Commercial Light Water Reactor
program is developing a tritium production system based on using
highly reliable and technically mature technology.
- Contractor Travel. The Administration opposes the statutory cap
of $150.0 million on contractor travel. The cap is too low and may
adversely impact scientific activities at the laboratories and the
exchange of information by scientists at conferences.
Department of Energy Security Reorganization
As part of our efforts to improve security at the Department of Energy, the
Administration has requested a budget-neutral amendment to reorganize all
safeguards and security functions, and to fund all of these activities
under the office of Security and Emergency operations. We urge the
Congress to support this critical proposal to address the current
institutional issues associated with ensuring safeguards and security.
Regional Economic Development
The Administration is disappointed by the Committee's failure to provide
$30 million requested for the Delta Regional Authority (DRA), part of the
President's Mississippi Delta Initiative. The Administration urges the
House to provide these funds. Although the Delta has seen some economic
progress, it remains far behind most of the rest of the country. In the
Delta's distressed counties, per capita income is only 53 percent of the
national average, and the poverty rate is more than twice the national
average. The Delta Regional Authority would bring the resources of a
Federal-State partnership to the fight for economic growth in the region.
The DRA's funding will be targeted to the counties with the highest poverty
and unemployment rates and lowest per-capita income.
The bill also fails to provide funding requested for the Denali Commission.
The bill also cuts the President's request for the Appalachian Regional
Commission by 12 percent.
The Administration urges the Congress to provide full funding for these
important regional economic development programs, which assist areas of the
country that have not benefitted fully from the Nation's strong economy.
Defense Nuclear Facilities Safety Board
The Administration strongly opposes the Committee's $1.5 million reduction
to the $18.5 million request for the Defense Nuclear Facilities Safety
Board. The Board provides a critical independent source of information to
the Department of Energy about worker health and safety issues.
Nuclear Waste Technical Review Board
The Administration strongly opposes the Committee's $0.5 million reduction
to the $3.2 million request for the Nuclear Waste Technical Review Board.
The Board's ability to provide an independent evaluation of the technical
and scientific validity of the Department of Energy's program to
characterize the Yucca Mountain site is crucial to the decisions that will
be made about the site in FY 2001 and the next several years. The
reduction could hurt the site evaluation process.
Kyoto Protocol
The Administration opposes Committee bill and report language relating to
the Kyoto Protocol. The bill language is unnecessary, as the
Administration has no intent to implement the Protocol prior to
congressional ratification. To the extent this language might reach
expenditures for negotiations with foreign governments, it would raise
serious constitutional concerns because the Constitution commits to the
President the power to decide whether to engage in such negotiations. In
addition, the report language goes far beyond the compromise agreed to
originally by the conferees in the FY 1999 appropriations process. We
support an amendment expected to be offered that would clarify that the
limitation does not apply to activities otherwise authorized by law.
Critical Infrastructure Protection
The Administration urges the House to provide the President's request of
$13.0 million for the Department of Energy for critical infrastructure
protection/cyber crime. These funds are a crucial component of the
national, interagency effort to protect infrastructure -- particularly
information systems -- in both Government and the private sector that is
essential to the functioning of our economy, national defense, and the
safety of the population. The funds requested for the Department of Energy
are necessary to develop and implement a plan to protect against and
respond to attacks that would significantly disrupt the Nation's energy
infrastructure.
The Committee's recommendation would provide only $3.0 million for critical
infrastructure protection. This funding level would severely scale back
the Administration's efforts to work with industry to identify and address
vulnerabilities in this area.
National Monument Designation
The Administration strongly opposes report language that would prohibit the
Department of Energy from using any funds for activities related to a
national monument designated under the 1906 Antiquities Act in the State of
Washington. This prohibition interferes with the President's authority to
direct an Executive Branch agency to comply with the Antiquities Act, which
authorizes the President to protect Federal land of historic and scientific
interest such as the salmon spawning grounds and the archaeologically rich
areas covered by the recent national monument designation of 195,000 acres
of Federal lands in south central Washington. The Interior Department's
Fish and Wildlife Service will manage this monument under existing
agreements with the Department of Energy.
Army Corps of Engineers
The Administration is concerned that the Committee's reduction in funding
for priority Army Corps of Engineers projects would result in significant
delays for certain critical construction projects. Of particular concern
is a reduction from $91.0 million to $80.0 million to the request for the
Columbia River Fish Mitigation project (Washington and Oregon). The full
amount requested is needed to meet requirements to save endangered salmon
and other species. The Administration supports funding for the
construction of an emergency outlet at Devil's Lake, North Dakota, and
based on this emergency, urges the House to approve construction funding in
the bill. The Committee's mark would delay providing the flood protection
that the Devils Lake area urgently needs. The Administration also urges
the House to fund the limited number of priority new projects and programs
in the President's budget, including the "Challenge 21" program for
environmentally friendly flood damage reduction projects, modifications to
Folsom Dam on the American River, California, restoration of the Hillsboro
and Okeechobee Aquifer in the Florida Everglades, and the program to
modernize Corps recreation facilities.
We urge the House to act on the Administration's Harbor Services Fund
proposal, which would provide a stable source of funding for port and
harbor activities. This proposal would also free up funds that could be
used for the priority projects and programs noted above, as well as for
important new navigation projects, including projects to deepen Baltimore
Harbor in Maryland and the Arthur Kill Channel (New York and New Jersey
harbor), which have not been funded by the Committee.
Bureau of Reclamation
The Administration appreciates the Committee's action to provide full
funding for the Central Valley Project Restoration Fund and substantial
funding for the Water and Related Resources program. However, we urge the
House to provide the full $60.0 million requested for the California
Bay-Delta program. The Committee's decision to provide no funds for this
effort would significantly hamper Federal and State efforts to restore this
ecosystem, protect the drinking water for 22 million Californians, and
enhance water supply and reliability for over seven million acres of highly
productive farmland and growing urban areas across California.
We urge the House to restore funding for the Rocky Boys Indian Water Rights
Settlement in Montana. Eliminating funding for the settlement would
prevent the Federal Government from honoring its legal commitments to the
Chippewa Cree Tribe. We strongly object to proposed restrictions on
addressing important public safety and environmental concerns at the Auburn
Dam site. We also object to language constraining the Bureau of
Reclamation's water acquisitions for the Middle Rio Grande and Carlsbad
projects by requiring the acquisitions to comply with the narrower
provisions of the Drought Emergency Assistance Act. This language could
substantially hinder our ability to meet requirements of the Endangered
Species Act while maintaining services to project beneficiaries. In
addition, we are disappointed that the House has not enacted the
Administration's proposal to convert the Central Valley Project Restoration
Fund program from discretionary to permanent funding to improve its
operating efficiency and effectiveness. Finally, we note that the
Committee's reduction to the Policy and Administration account would hinder
the Bureau of Reclamation's ability to administer important Reclamation
activities.
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