This
Statement of Administration Policy provides the Administration's views
on the Energy and Water Development Appropriations Bill, FY 2002,
as reported by the Senate Committee. The Administration appreciates
the Committee's efforts to fund agencies and programs at the President's
request, however, we are concerned that the Senate version of this
bill exceeds the President's request by nearly $2.5 billion. The Administration
looks forward to working with the Congress to ensure mutual priorities
are addressed in programs throughout the government, and that discretionary
funding is within the levels agreed to in the budget resolution. The
Administration would like to take this opportunity to share some concerns
with the Senate Committee version of this bill, as noted below.
Department
of Energy
The
Committee action on both the Energy/Water and Interior appropriations
bills is consistent with and largely supportive of the President's
National Energy Policy. On May 17th, with the release of the President's
National Energy Policy, the President directed the Department of
Energy (DOE) to undertake a review of existing energy efficiency
and alternative and renewable energy research and development (R&D)
programs to ensure future program budget allocations are performance-based
and modeled as public-private partnerships. Based on the Secretary
of Energy's preliminary review, the Senate Committee's action in
both bills to include an additional $334 million for energy efficiency
and renewable energy R&D may be supportive of the President's objectives.
The
Administration looks forward to working with Congress through conference
to ensure the allocation of resources to those programs that most
effectively meet performance-based criteria. We will also work with
Congress to fund the most efficient program alternatives by reducing
lower priority program resources. In particular, the Administration
believes it is necessary to leverage applied R&D funds to a greater
extent by increasing the industry cost share. This would be particularly
useful in some DOE programs, especially as R&D projects move closer
to commercialization.
The
Administration strongly objects to the Committee's reduction of
$170 million for the Office of Civilian Radioactive Waste Management.
The $275 million provided is insufficient to carry out the statutory
requirements of the program. It would require an immediate suspension
of scientific work and result in a loss of key scientific personnel.
The Federal government would lose the ability to sustain forward
momentum in this program, and incur increased liability due to further
delays in meeting its obligations. Significantly underfunding this
program would likely leave no path forward for removing the Department's
spent nuclear fuel and high-level radioactive wastes at Hanford
Reservation, Savannah River Site, West Valley, New York, and Idaho
National Environment and Engineering Laboratory. This could have
serious repercussions for our national defense and could subject
the Department to further litigation.
In
addition, the Administration objects to the $2 billion increase
in borrowing authority for the Bonneville Power Administration (BPA)
because it is not needed at this time to fund BPA's planned expenditures.
However, the Administration appreciates the need for additional
investment in electricity infrastructure and will work with the
Congress to ensure that adequate private and public resources are
available to conduct an effective capital investment program. As
discussed in the National Energy Policy Report, the Secretary of
Energy is analyzing transmission system bottlenecks and ways to
remove them. It is in this context that the Administration is reviewing
capital and financing requirements. The President's budget fully
funds BPA's planned expenditures through at least FY 2003. Moreover,
the Senate bill would prohibit BPA from using any of this additional
authority in FY 2002, highlighting the view that this increase is
not needed at this time, while clouding recognition that it would
absorb $2 billion in outyear budget resources and is tantamount
to a significant new advance appropriation. We therefore urge the
Senate to delete this provision.
Army
Corps of Engineers
The
Administration appreciates the Committee's efforts to address Administration
funding priorities for the Army Corps of Engineers Civil Works program.
However, the Administration is concerned about the Committee's increase
of $405 million over the request for Corps programs. We can have
a strong water resources program at the funding level proposed in
the budget by establishing priorities among projects. The Administration
is particularly concerned that the Committee's bill contains approximately
$240 million for 260 specifically identified projects and activities
that were not included in the President's budget (over $120 million
more than were included for such projects in last year's Senate
bill). Given the large amount of funding needed to complete the
backlog of construction projects already underway (over $21 billion),
the President's budget focused on completing ongoing projects rather
than starting construction of new projects that would add to this
backlog and increase delays in completing ongoing projects. We urge
the Senate to limit the number of earmarked projects and to focus
funding on economically justified, environmentally acceptable projects
that address the Corps' principal mission areas.
Bureau
of Reclamation
The
Administration appreciates the Committee's funding that supports
the goals of the California Bay-Delta Restoration Program (CALFED)
program.
Nuclear
Regulatory Commission (NRC)
The
Administration objects to language included in the Committee Report
that would block the NRC from revising a regulation governing the
use of medical isotopes. There are annually more than 11 million
medical procedures for the diagnosis and treatment of disease that
use radioactive materials. This regulation, adopted by the Commission
in October 2000, would reduce the regulatory burden on the public
while maintaining radiation safety of workers and the public. The
regulation is currently undergoing review by OMB, and we urge the
Senate to delete this provision that would leave in place the existing,
more burdensome regulation.
Infringement
on Executive Authority
The
Administration objects to the provision in Section 303 in the Committee
bill that would require Committee approval before Executive Branch
execution. The Administration will interpret this provision to require
only notification of Congress, since any other interpretation would
contradict the Supreme Court ruling in INS v. Chadha.
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