U.S. Senate Republican Policy Committee - Larry E. Craig, Chairman - Jade West, Staff Director
No. 39 September 4, 1997

H.R. 2107 -- Department of the Interior and
Related Agencies Appropriations Bill, 1998

Calendar No. 122

Reported by the Committee on Appropriations on July 22, 1997, with amendments, by a vote of 28 to 0. S. Rept. 105-56.
Quick Tabs:
Interior * Related Agencies * Cost


NOTEWORTHY


HIGHLIGHTS

Title I: Department of the Interior

The Committee provides $6.58 billion for the Department of the Interior in FY 1998, an amount which is $14.2 million above the budget estimate and $62.9 million above the House amount.

Bureau of Land Management: The bill provides $1.135 billion for the Bureau of Land Management, an increase of $6.6 million over the House bill and more than $40 million over funding provided in FY 1997 (discounting FY 1997 emergency supplementals). The bill includes increases over FY97 of $12.5 million for wildland fire preparedness (providing $156.7 million for FY98); $18.2 million for fire operations (providing $126 million); $6.5 million for Payments In Lieu of Taxes (PILT) ($120 million); $4 million for recreation management ($49.9 million), $1 million for wildlife and fisheries ($28.3 million), $2.3 million for range management ($54.3 million), $3.4 million for energy and minerals ($70.9 million), and $2.2 million for resource protection and maintenance ($66.3 million).

Decreases include $4.7 million from the wild horse and burro program (providing $11.2 million for FY98) and $8.3 million from the Automated Land & Minerals Records System (providing $34 million), due to the achievement of a project milestone. The bill retains the patent mining moratorium carried in the FY 1996 and FY 1997 appropriations acts.

Fish and Wildlife Service: A total of $729.7 million is provided for the Fish and Wildlife Service, an increase of $59 million over the fiscal year 1997 level. A significant initiative to reduce operational shortfalls and maintenance backlogs at national wildlife refuges is supported, with increased funding for refuge operation and maintenance ($212 million is provided, an amount which $33.2 million above the FY 1997 level and $20 million above the budget level).

National Park Service: The Committee provided $1.6 billion, an increase of $79.9 million (discounting equipment replacement transfer from construction) over comparable FY 1997 enacted levels for the National Park Service for a total funding level for the Service of $1.6 billion. These funds will be used to provide a 1 percent across-the-board operating increase to all parks; nearly $25 million for a targeted park-operations initiative to address particular resource and management needs at a wide array of parks; fixed cost increases for pay and other uncontrollable costs; and special initiative funding in areas such as air quality monitoring, South Florida ecosystem science programs, protection and preservation of archeological and historical resources, and management improvements. Funding is provided for two major programs included in last year's Omnibus Parks legislation: $5.3 million for heritage areas and $4.6 million for grants to preserve structures at Historically Black Colleges and Universities.

Minerals Management Service: The Committee has recommended $141.8 million for management of the nation's offshore energy and mineral resources and royalty management on Federal and Indian lands.

Office of Surface Mining: The Committee has recommended $275.1 million for the Office of Surface Mining Reclamation and Enforcement, which is $4 million above the administration request. The bill includes $5 million for the Appalachian Clean Streams Initiative, an increase of $1 million above the fiscal year 1997 level.

U.S. Geological Survey: $758.2 million is provided for the U.S. Geological Survey, an increase of $18.1 million over the current year level. This amount includes $147.2 million (an increase of $9.7 million over the current year) for the Biological Research Division.

Native American Programs

Bureau of Indian Affairs Tribal Priority Allocations: The Senate and House bills both fully fund the President's request for Tribal Priority Allocations (TPA) at $757.4 million, an increase of $76.5 million over FY 1997 levels. TPA now makes up 49 percent of the Bureau's operating budget. Within TPA, approximately 30 percent is distributed by formula based on tribes meeting criteria for the following programs: the Indian Child Welfare Act; new tribes; Johnson O'Malley education assistance; housing improvement (HIP); road maintenance; contract support; and welfare assistance. The Committee has included report language directing the continued allocation of these funds based on qualification with specific criteria. The Committee has included bill language directing the BIA to develop and present to the Congress by January 1, 1998, its recommendation for the allocation of the TPA funding which is currently distributed pro rata to the tribes based on "historical" levels of funding. In developing its recommendations, the BIA is to take into consideration tribal economic wealth and need. In addition, the Committee has included bill language pursuant to which tribes which receive TPA funding waive any claim of immunity, submit to the jurisdiction of U.S. courts, and grant original jurisdiction of all civil actions involving the tribe to U.S. district courts.

Indian Health Service (in Title II): The bill provides $2.13 billion for the Indian Health Service which is under the Department of Health and Human Services. The funding level is $40.4 million over the House allowance, $72.7 million over FY 1997 and $4.7 million over the President's request. The Committee's recommendation includes $35 million for uncontrollable fixed costs related largely to hospital and clinic personnel, an increase of $21 million over the budget request. This increase will allow IHS to maintain current levels of service. The bill also includes $13 million for construction of the Ft. Defiance, AZ, hospital and $13.9 million for the Polacca, AZ, outpatient facility.

Other Programs: The bill provides $15 million for the Office of Navajo and Hopi Indian Relocation; $5.5 million for the Institute of American Indian and Alaska Native Culture and Arts Development; $1 million for the National Indian Gaming Commission; and $35.7 million for the Office of Special Trustee for American Indians, an increase of $3.6 million over FY 1997.

Title II: Related Agencies

Department of Agriculture (Forest Service)

Forest Service: The Committee provided $2.49 billion for the Forest Service, $126.4 million above the budget estimate and $139.6 million less than the House level. This amount is $133 million above the FY 1997 enacted amount (excluding emergency supplemental funds). Funds for Forest Service programs include $188.6 million for research, an increase of $8.9 million above the administration request; $162.7 million for State and Private Forestry, an increase of $6.3 million above the administration request; $582.7 million for Wildland Fire Management, an increase of $68.4 million above the administration request; and $160.3 million for Construction/Reconstruction, an increase of $14.2 million above the administration request. The funding provided for the Forest Service includes a $33.4 million increase to the administration request for forest health related programs, including:

Timber Production: Funds have been provided to produce a 3.8 billion board feet of timber, consisting of 2.525 billion board feet from "green" sales, and 1.275 billion board feet from salvage.

National Forest System: The Committee appropriated $1.35 billion for the National Forest System, $20.5 million above the budget estimate but $18.3 million below the House appropriation.

Increased Accountability for Planning: Through language in the bill and report, the Committee has included direction to increase Forest Service accountability for land management planning, implementation of the Columbia Basin Ecosystem assessments and other ecoregion assessments, and the elimination of needless processes relative to duplicate planning procedures.

Department of Energy

Fossil Energy R&D: Fossil energy research and development is funded at $364 million, which is nearly as much as the FY 1997 enacted level. Increases above the budget request are provided to sustain technology development programs intended to produce environmental benefits while improving energy efficiency. Although the Committee rescinded $101 million in clean coal funding, it provided $100.4 million for coal research, a slight increase over the Administration request.

Energy Conservation: $627.4 million is provided for Energy Conservation programs, an increase of $58 million over the fiscal year 1997 level. Increases over current year levels include $17 million for transportation programs, $20 million for building R&D, and $16 million for industry programs. The bill provides $129 million for the weatherization program, an increase of $8 million over current year levels. The bill also provides $31.1 million for the state grant program, $2.1 million above the current year level.

Strategic Petroleum Reserve: The bill includes a sale of $207.5 million worth of oil from the Strategic Petroleum Reserve to finance operation of the reserves. (Note: Senator Gorton has indicated he is willing to consider options for removing the sale from the bill, but adds that doing so will likely result in commensurate cuts in other programs.) No funds were provided for oil purchases for the SPR.

Cultural Programs

National Endowments: The bill includes $100.1 million to continue the National Endowment for the Arts. This is essentially the FY 1997 level, adjusted for inflationary increases. Similar treatment is provided for the National Endowment for the Humanities ($110.7 million) and the other cultural programs supported in the bill, however, the National Endowment for the Arts may make grants to individuals only for literature fellowships, national heritage fellowships, or American jazz masters fellowships.

Smithsonian: Total funding for the Institution is $402.6 million, an increase of $31.2 million from the FY97 level. Funding is included in the Smithsonian account to begin construction on the Mall of the National Museum of the American Indian ($29 million). In addition, $4 million is provided to complete design for the National Air and Space Museum Extension at Dulles Airport (the budget request and House bill provide no funding for this item).

Title III: General Provisions

The Committee has included 42 general provisions that are described beginning on page 108 of the Committee Report. In addition to the traditional provisions such as Buy America, the Committee addressed specific management and spending controls. One item of interest is section 334, which gives the Secretary of Agriculture new authority to enter into cooperative agreements with willing private landowners and State and local governments to protect, restore, or enhance fish and wildlife habitat.

Title IV: Deficit Reduction Lock Box

The Committee deleted the House provision creating a "deficit reduction lock box," noting that the provision would amend the Congressional Budget Act, and therefore falls within the jurisdiction of the Budget Committee.

Title V: Priority Land Acquisition and Exchanges

In addition to funds approved in the regular land acquisition accounts, the bill provides $700 million in a special land acquisition account that was included in the budget agreement. Of this amount, $315 million is for the Headwaters Forest, CA ($250 million) and New World Mine, MT ($65 million) acquisitions, subject to enactment of specific authorizing legislation. This account also includes $100 million for the "stateside" grant program, to be allocated over four years. The remaining $285 million is for Federal land acquisition projects to be determined jointly by the Congress and the Administration.

Government Performance and Results Act

The GPRA was enacted to improve the management of Federal agencies by requiring an emphasis on planning and results. As the strategic plans are developed, agencies are required to consult with Congress and other stakeholders on their draft strategic plans and incorporate suggestions or concerns in the plan submitted to OMB. The Committee reiterated to the agencies that "the vast field network of offices, land management units, research locations, and other satellite locations" must be involved in the early states of GPRA and "buy-in to the process." Otherwise, the Committee notes, "objectives and goals that are not easily measured or evaluated at the field unit level" may not be "useful at the policy and budget decisionmaking level."

"The Committee looks forward to continued dialog during fiscal year 1998 as the fiscal year 1999 annual performance plans are developed, and in the future when outcomes are measured and strategic plans are revisited."


COST

Excluding outlays from prior-year budget authority, CBO estimates that this bill would result in outlays of $9.07 billion in FY 1998, $3.58 billion in FY 1999, $929 million in FY 2000, $248 million in FY 2001, and $39 million in FY 2002 and future years. CBO also notes that the bill provides $462 million in financial assistance to State and local governments for FY 1988. Of the $13.7 billion in outlays provided, $50 million are in mandatory spending.


ADMINISTRATION POSITION

In a letter to Interior Subcommittee Chairman Gorton, dated July 28, 1997, the Attorney General indicated she would recommend that the President veto the bill unless the Congress deletes the provision waiving Indian sovereign immunity as a condition of receipt of Tribal Priority Allocations funds from the "Operation of Indian Programs" account. In addition, the Secretary of the Interior has indicated that he would recommend a veto of the bill if it retains the provisions regarding sovereign immunity and the Tribal Priority Allocations formula changes, such as the requirement that the Department of the Interior develop a formula to allocate the TPA funds on the basis of need.


POSSIBLE AMENDMENTS

Bryan -- To delete Forest Service funding for construction of roads related to timber sales.

Bumpers -- To delete section 339, regarding new surface mining regulations.

[ ______ ] -- Regarding sections 118 and 120, Indian Tribal Priority Allocations.

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