Selected Interior and Related Agencies Budget Requests for I T 1995

Congressional research reportApr 7, 1994

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94-310 ENR

Selected Interior and Related

Agencies Budget Requests

for I

T 1995

Alfred R. Greenwood

Coordinator

Environment and Natural Resources Policy Division

April 7, 1994

SELECTED INTERIOR AND RELATED AGENCIES

BUDGET REQUESTS FOR FY 1995

SUMMARY

This report reviews the FY 1995 budget request of the Department of the

Interior with brief analyses of the budget requests of selected agencies within

the department that principally are involved in natural resources programs or

activities .

This report also provides an overview of the mission of the Department of

the Interior, its organization, and its major budget initiatives for FY 1995 .

While not a part of the Department of the Interior, the U .S . Forest Service of

the Department of Agriculture is also reviewed because of its natural resource

management responsibilities .

CONTRIBUTORS

Environment and Natural Resources Policy Division

Alfred R . Greenwood, Coordinator

David M. Bearden, Production

Betsy A. Cody

M . Lynne Corn

Ross W. Gorte

Marc Humphries

Duane A. Thompson

Science Policy Research Division

James E . Mielke

CONTENTS

INTRODUCTION

OVERVIEW

INITIATIVES

Investments

National Performance Review

NATIONAL PARK SERVICE

Mission

Analysis

BUREAU OF LAND MANAGEMENT

Mission

Analysis

U.S. FOREST SERVICE

Mission

Analysis

U.S . FISH AND WILDLIFE SERVICE

Mission

Analysis

NATIONAL BIOLOGICAL SURVEY

Mission

Analysis

BUREAU OF RECLAMATION

Mission

Analysis

U.S. GEOLOGICAL SURVEY

Mission

Analysis

MINERALS MANAGEMENT SERVICE

Mission

Analysis

U.S . BUREAU OF MINES

Mission

Analysis

THE OFFICE OF SURFACE MINING RECLAMATION AND

ENFORCEMENT

Mission

Analysis

SELECTED INTERIOR AND RELATED AGENCIES

BUDGET REQUESTS FOR FY 1995

INTRODUCTION'

The Department of the Interior was created by Congress on March 3, 1849

The department's current jurisdiction includes the

administration of over 500 million acres of Federal land and trust

responsibilities for 50 million acres of Native American lands . The department

is responsible for the conservation and development of mineral, water, fish, and

wildlife resources as well as the preservation and administration of many of the

Nation's wild, scenic, and historic areas . Other responsibilities include the

management of hydroelectric power projects and the reclamation of western

lands through irrigation . The United States Government Manual for 1993/94

describes the mission and purpose of the Department of the Interior as follows :

(43 U .S .C . 1451) .

As the Nation's principal conservation agency, the Department of the

Interior has responsibility for most of our nationally owned public

lands and resources. This includes fostering sound use of our land and

water resources; protecting our fish, wildlife, and biological diversity ;

preserving the environmental and cultural values of our national parks

and historical places ; and providing for the enjoyment of life through

outdoor recreation . The Department assesses our mineral resources

and works to ensure that their development is in the best interests of

all our people by encouraging stewardship and citizen participation in

their care . The Department also has a major responsibility for

American Indian reservation communities and for people who live in

island territories under United States administration .

Five Assistant Secretary's direct the department's 9 major bureaus, as

shown in the departmental organizational chart on the following page .

' Prepared by Alfred R . Greenwood, Senior Analyst in Natural Resources

Policy, Environment and Natural Resources Policy Division .

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OVERVIEW

The Department of the Interior's budget request for FY 1995 is $9 .415

billion, $264 million less than the FY 1994 estimate of $9.679 billion. However,

budget outlays for FY 1995 increase by $34 million to $9 .473 billion over the FY

1994 outlay estimate of $9 .439 billion, and $538 million more than the FY 1993

actual outlays of $8 .935 billion.

The following table provides information on the budget authority, outlays

and receipts for the department for FY 1993, 1994, and 1995 .

Table 1 . Budget Authority, Outlays, and Receipts

for Fiscal Years 1993, 1994, and 1995

(in millions of dollars)

FY 1993

FY 1994

FY 1995

Actual

Estimate

Request

Change

Funds subject to annual appropriation

Permanents, trusts, and others

7,026

1,982

7,547

2,132

7,466

1,949

-81

-183

Total

9,008

9,679

9,415

-264

Funds subject to annual appropriations

Permanents, trust, and others

7,086

1,849

7,371

2,068

7,604

1,869

+233

-199

Total

8,935

9,439

9,473

+34

Outer Continental Shelf (OCS)

OCS Escrow Payout

Onshore Mineral Leasing

Other Receipts

2,785

1,137

1,503

2,708

1,250

1,444

2,603

1,300

1,218

1,588

-105

+1,300

-32

+144

Total

5,425

5,402

6,709

+1,307

(Offsetting Receipts)

2,147

2,194

2,296

+102

Budget Authority

Budget Outlays

Receipts

Source: The Interior Budget in Brief, Fiscal Year 1995, p. 6.

A further breakdown of budget authority and outlays by bureau is shown

in Table 2 on the following page .

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Table 2 . Total Budget Authority and Outlays by Bureau

(in millions of dollars)

Budget Authority

Change

Bureau of Land Management

Minerals Management Service

Office of Surface Mining Reclamation

and Enforcement

Bureau of Reclamation

Central Utah Project

U .S . Geological Survey

Bureau of Mines

Fish and Wildlife Service

National Biological Survey

National Park Service

Bureau of Indian Affairs

Office of Territorial and International Affairs

Office of the Secretary

Office of the Solicitor

Office of the Inspector General

National Indian Gaming Commission

Total

Budget Outlays

Change

Bureau of Land Management

Minerals Management Service

Office of Surface Mining Reclamation

and Enforcement

Bureau of Reclamation

Central Utah Project

U.S . Geological Survey

Bureau of Mines

Fish and Wildlife Service

National Biological Survey

National Park Service

Bureau of Indian Affairs

Office of Territorial and International Aff

Office of the Secretary

Office of the Solicitor

Office of the Inspector General

National Indian Gaming Commission

Total

Source : The Interior Budget in Brief,

FY 1993

FY 1994

FY 1995

(actual)

(estimate)

(request)

1,108

667

1,165

734

1,209

721

+43

-13

300

911

1,414

2,047

371

302

944

585

170

1,160

167

1,508

2,269

513

278

837

584

151

1,210

177

1,489

2,244

338

-23

-107

+16

-1

-20

+51

+10

-19

-24

-175

-2

9,007

9,679

9,415

-263

FT 1993

FT 1994

FT 1995

(actual)

(estimate)

(request)

583

176

1,307

1,063

676

1,155

734

1,212

715

+57

-20

304

913

262

1,039

559

158

1,198

1,549

2,076

492

309

845

585

151

1,219

152

1,605

2,166

334

+47

-194

+18

+26

-7

+21

+87

+56

+90

-158

+ 1

8,931

9,438

9,473

+35

620

173

1,239

1,510

2,001

317

ear 1995, p . 28 .

CRS-5

INITIATIVES

Investments

The Department of the Interior's FY 1995 budget emphasizes two major

initiatives :

investment initiatives and Vice President Gore's National

Performance Review Initiatives for the Department of the Interior . The

Department of the Interior's FY 1995 budget includes $2 .22 billion for natural

resources investments with emphasis on interagency ecosystem management in

South Florida ecosystem restorations, the Pacific Northwest Forest Plan, and

the restoration of Prince William Sound.

Table 3.

Natural Resources Investments

South Florida Ecosystem Restoration

Pacific Northwest Forest Plan

North American Free Trade Agreement (NAFTA)

Los Angeles Area Water Reclamation/Reuse Pilot Program

National Spatial Data Infrastructure

National Biological Survey

National Park Service Operations

Fish and Wildlife Service Operations

Bureau of Land Management Operations

U.S . Geological Survey (selected programs)

Bureau of Indian Affairs/Safer Dams on Reservations

FY 1995

Change from FY 1994

$57.3 million

$71.4 million

$11.3 million

$10 .2 million

$7 .2 million

$169 .7 million

$1,108 .4 million

$500 .3 million

$263 .3 million

$7 .8 million

$18 .0 million

+ $28.9 million

+ $44.9 million

+ $10.9 million

same as FY 1994

+ $6 .0 million

+ $5 .3 million

+ $61 .3 million

+ $24 .2 million

+ $17 .0 million

+ $2 .8 million

same as FY 1994

National Performance Review

The Department of the Interior's FY 1995 budget incorporates

recommendations and actions included in the September 1993 Department of the

Interior Accompanying Report to the National Performance Review (NPR) . The

following initiatives are some of the NPR management reforms highlighted in

the budget .

Restructuring the Bureau of Reclamation

This initiative includes a $107 million reduction from $944 million in FY

1994 to $837 million in FY 1995 to reflect a reduction in both construction

projects and the size of the Bureau of Reclamation staff in Denver to permit

expanded efforts in water conservation, environmental protection, and

restoration of recreational facilities .

Streamlining the Bureau of Mines and the Minerals Management

Service

The FY 1995 budget request reduces the previous budgets of both bureaus .

The Bureau of Mines' budget is reduced by $19 million from $170 million to

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$151 million and includes consolidating 12 field offices into five centers . The

Minerals Management Service's budget is reduced by $13 million from $734

million to $721 million and includes a proposal to consolidate functions at five

locations as part of an effort relating to the changing nature of its offshore

program .

Generating Equitable Returns for Public Resources

The FY 1995 Budget introduces a number of revenue proposals designed to

ensure a fair return for the use of public resources .

Ha rdrock Mining and Reclamation

This initiative relies on comprehensive reform of the 1872 Mining Law by

the Congress and reflects the Administration's proposal to impose an 8 percent

royalty on such minerals as gold, silver, copper, zinc, or other hardrock minerals

removed from Federal lands . The Federal government does not currently charge

a royalty on these minerals . The department estimates that the 8 percent

royalty would yield approximately $133 million per fiscal year .

Rangeland Reforms

The department proposes to increase grazing fees charged to ranchers over

a three-year period from the current $1 .96 per animal unit month (AUM) to

$4.28 . However, on March 17, 1994, the Department of the Interior announced

a scaled-back grazing plan which would increase grazing fees to $2 .75 during the

first year, $3 .50 during the second year, and $3 .96 during the third year .

Increased Park Fees

The department also proposes to collect an additional $32 million from

entrance fees and the establishment of a new National Park Renewal Fund .

Legislation will be requested by the department to provide the National Park

Service with broad authority to set entrance fees .

NATIONAL PARK SERVICE 2

Mission

The basic mission of the National Park Service is to preserve, protect, and

interpret the natural, cultural, and historic resources of the Nation for the public . To a considerable extent, the agency also contributes to meeting the public

demand for certain types of recreational opportunities . Scientific research is

another frequent activity in units of the National Park System . These missions

are typically spelled out in the authorizing legislation for the individual units

Prepared by Ross W. Gorte, Specialist in Natural Resources Policy,

Environment and Natural Resources Policy Division .

CRS- 7

of the system when they are established, as well as in general park management

statutes, such as the 1916 Act establishing the National Park Service .

The dual, and sometimes contradictory, components of the National Park

Service mission date to the 1872 law establishing Yellowstone as the world's

first National Park . That law required that the area should be "dedicated and

set apart as a public park and pleasuring-ground for the benefit and enjoyment

of the people," thus setting out the public use and recreation mission . The law

also required regulations to "provide for the preservation, from injury or spoliation, of all timber, mineral deposits, natural curiosities, or wonders within said

park, and their retention in their natural condition," thus setting a clear requirement for a preservation mission, as well .

The National Park System has grown substantially since Yellowstone National Park was authorized in 1872 . As of 1991, the system contained 357 units

totalling more than 80 million acres ; two-thirds of the lands in the National

Park System (55 million acres) are in Alaska . The 50 National Parks are the

largest and best known units, but the National Park System has 19 other types

of units, including National Monuments, National Recreation Areas, National

Historic Sites, National Battlefields, National Seashores, and other designations .

Table 4. National Park Service Budgets, FY 1993-1995

(in millions of dollars)

FY 1995

(Request)

FY 1994

(Estimate)

FY 1993

(Actual)

$1,488.55

$1,503.3

$1,436.1

Analysis

The President has requested nearly $1 .5 billion for the National Park Service for FY 1995, a net decrease of $14.7 million (1 .0 percent) from FY 1994

appropriations . This request would support 18,882 FTEs, down 404 FTEs (2 .1

percent) from FY 1994 . The apparent decline in the Park Service budget is

largely due to a proposed legislative transfer of the John F . Kennedy Center for

the Performing Arts to the Smithsonian Institution, resulting in a reduction of

$20 .6 million in the Park Service budget . The budget request thus proposes an

increase of $5 .9 million (0 .4 percent), net of the proposed transfer . The FY 1995

budget request proposes numerous shifts among budget line items, including

funding for three initiatives .

Park Operations

The FY 1995 Park Service budget request includes an initiative on park

operations, with $32 .0 million to be spread across-the-board for park management. This 2 percent increase is to cover the cost of inflation and the most

CRS-8

urgent shortfalls in about 60 park units, although the proposed increase is less

than the rate of inflation . This initiative is also less than the $65 .6 million

increase specified in the park operations line item ; it is unclear why these data

differ .

Careers Initiative

In FY 1995, the Park Service plans to commit $30 .4 million "to support an

investment in our personnel ." This includes $18 million for recruitment, pay,

training, and other equity issues, and another $6 million to correct past inequities . More than $2 million will be used to further enhance concessions

management and $4 million to professionalize the resources stewardship program.

South Florida Ecosystem Management

In recognition of the importance, and deterioration, of the ecosystem of

South Florida, a South Florida Ecosystem Task Force was established in 1993 .

The task force includes numerous Interior Department agencies as well as other

Federal agencies . The Park Service, with responsibility for Everglades National

Park, Biscayne Bay National Park, and Big Cypress National Preserve, has an

important role in the task force and in restoring and managing the ecosystem .

The FY 1995 budget request includes $3 .7 million as the Park Service contribution to this effort .

Major Proposed Changes in the Budget

The Park Service budget request includes numerous changes that seem

unrelated to the initiatives described above . In addition, it contains two proposals that will require legislative authorization . One, described above, is to

transfer the Kennedy Center for the Performing Arts to the Smithsonian Institution, resulting in a Park Service budget savings of $20 .6 million.

The second legislative proposal is to expand the fee collections at park

units, raising collections from an estimated $94 million to $140 million . Since

the Omnibus Budget Reconciliation Act of 1993 amended the Land and Water

Conservation Act to permit the Park Service to retain 15 percent of recreation

fees, the legislative proposal that would increase fee collections would also raise

the funding support to collect the fees . The total increase in fee collection

support for FY 1995 is estimated to be $6 .9 million, 49 percent above the FY

1994 level.

Only two Park Service budget line items are proposed for a significant rise .

FY 1995 park operations are proposed to increase by $65 .6 million, 6 percent

above FY 1994 levels . This is nearly double the $32 million specified for the

park operations initiative, discussed above ; the reason for this difference is

unclear . The other increase is $2 .0 million (5 percent) for historic preservation .

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Several budget line items are proposed for significant declines :

•

Kennedy Center for Performing Arts : $20 .6 million (100 percent) ;

Construction: $52 .6 million (26 percent) ;

Land acquisition and State grants : $12 .6 million (13 percent) ;

Miscellaneous trusts (i.e., donations): $1 .3 million (12 percent); and

National recreation and preservation : $2 .1 million (5 percent) .

BUREAU OF LAND MANAGEMENT 3

Mission

The Bureau of Land Management (BLM) oversees nearly 270 million acres

of Federal land and an additional 300 million acre mineral estate underlying

land in mixed ownership . BLM lands generally are managed for "multiple uses"

under the Federal Land Policy and Management Act of 1976 ; however, other

laws also guide the management of specific lands and resources . These laws

include, but are not limited to : the Taylor Grazing Act of 1934, the Wilderness

Act, the General Mining Law of 1872, and the Minerals Leasing Act of 1920 .

The BLM was created in 1946 -- the result of a merger of the General Land

Office and the U .S . Grazing Service, both in the Department of the Interior . In

1800, Congress established the first land offices in Ohio, and the General Land

Office in 1812, to convey lands to the pioneers who first began to settle the

western lands . The U.S. Grazing Service was formed in 1934 under the Taylor

Grazing Act to manage the public lands best suited for livestock grazing. This

Act had been passed to remedy the deteriorating condition of public rangelands

due to overuse, fragmentation from homesteading, and the drought and

depression of the 1920s and 1930s .

A total of 1 .1 billion acres of public land have been transferred to citizens,

States, and businesses under various Federal land laws . The last large transfer

of land administered by BLM occurred in 1980 with the passage of the Alaska

National Interest Lands Conservation Act, which transferred large amounts of

land from BLM to other Federal land management agencies . BLM manages land

retained in Federal ownership for a variety of purposes and uses, not all of

which are entirely compatible.

Increased population and demand for

recreational access as well as other amenities, and the historical practices of

grazing, mining, and timber harvesting on BLM and other Federal lands have

resulted in escalating pressures on Federal land managers and Congress to

address competing uses .

Prepared by Betsy A . Cody, Analyst in Natural Resources Policy,

Environment and Natural Resources Policy Division .

CRS-10

Table 5 . Bureau of Land Management Budgets, FY 1993-1995

(in millions of dollars)

FY 1995

(Request)

FY 1994

(Enacted)

FY 1993

(Actual)

$1,208 .5

$1,165.3

$1,108.8

Analysis

The FY 1995 budget request includes $1 .21 billion in total budget authority

for the BLM, an increase of approximately 4 percent from FY 1994 . Two major

initiatives receiving increased funding in the FY 1995 budget request include

$18 .7 million for the Pacific Northwest Forest Plan and $14 .5 million for

rangeland management reform initiatives .

The FY 1995 Clinton Administration budget request in part reflects a

change to support broad resource management goals, instead of the historical

program-by-program approach to BLM management and budgeting . This change

is further illustrated by the Administration's proposed new budget structure,

which shifts several BLM program subactivities (i .e., rangeland or wildlife

management) into broader management categories such as "sustaining resource

values," and "physical uses," with subactivities including "upland resources," and

"realty and ownership ."

In keeping with its broad management goals, the Administration has also

declared that it is pursuing "ecosystem management" as a way to address

concerns in the management of Pacific Northwest forests and other areas .

Additionally, the Administration is pursuing major changes in rangeland

management policy, and increases in grazing fees and initiation of fees for

mining of hardrock minerals covered under the 1872 Mining Law.

The FY 1995 BLM budget is expected to support 11,796 full-time equivalent

employees (FTEs) -- 167 less than the FY 1994 budget level . Approximately

1,000 of FTE are allocated to BLM accounts that support other bureaus or

agencies. Some programs receiving less money in the FY 1995 request than

what was enacted in FY 1994 include :

•

energy and minerals management programs (the Oil and Gas, Coal

Management, and Other Mineral Resources Management programs) ;

forest management outside Western Oregon ;

information and resource data management ;

hazardous materials management (offset by establishment of a new

central hazardous materials management account) ;

wildland fire management ; and

construction and access .

CRS-11

Programs with higher request levels than the previous year include :

•

mining law administration (to be covered by annual maintenance fees) ;

lands and realty management;

other land and resource management programs (wild horse and burros,

rangeland management, soil and water management, wildlife habitat

and fisheries management, cultural resources management, and

wilderness management) ;

automated land and minerals records system ;

resource protection and law enforcement;

DOI wildland fire operations ;

Oregon and California grant lands, and other forest resources

management (Pacific Northwest Forest Plan, riparian enhancement,

Western Oregon facilities maintenance) ;

resource management planning (new) ; and

land acquisition .

Perennial issues affecting the BLM include what price should be charged

to use BLM grazing lands and to develop minerals, what lands should be

preserved as wilderness or otherwise preserved in their more natural state, how

forests should be managed, and what changes should be made in general

management policies . The President's budget request and revenue projections

assume increases in both the grazing fee and minerals fees .

U.S. FOREST SERVICE 4

Mission

The Forest Service was established in the Department of Agriculture in

1905 by a merger of the Forestry Division of the General Land Office, which

managed forest lands reserved beginning in 1891, with the USDA Bureau of

Forestry, which assisted Federal, State, and private forest owners and conducted

forestry research . The Forest Service has three principal missions following

from the missions of its predecessors : managing the National Forest System,

assisting States and private forestland owners, and conducting forestry research .

The Forest Service also has a long tradition of international forestry cooperation

and research, but this mission was not officially recognized as a branch of the

Forest Service until 1992 . The National Forest System, with 191 million acres,

dominates the agency's culture and budget, accounting for nearly 90 percent of

annual expenditures .

Many laws provide guidance for Forest Service activities . The Multiple-Use

Sustained-Yield Act of 1960 further articulated goals for managing the National

Forest System that had been established in 1897 . The Forest and Rangeland

' Prepared by Ross W . Gorte, Specialist in Natural Resources Policy,

Environment and Natural Resources Policy Division .

CRS-12

Renewable Resources Planning Act of 1974 (RPA) established a strategic

planning process for assessing resource supplies and demands, developing a

program to guide Forest Service actions (accompanied by a Presidential statement of policy), and reporting on performance in achieving the program's goals .

RPA, as amended by the National Forest Management Act of 1976 (NFMA), also

requires integrated land and resource management plans for the units of the

National Forest System, prepared by an interdisciplinary team, with public participation, and revised when conditions have significantly changed (but at least

every 15 years) .

Table 6. U.S. Forest Service Budgets, FY 1993-1995

(in millions of dollars)

FY 1995

(Request)

FY 1994

(Estimate)

FY 1993

(Actual)

$3,244 .9

$3,251 .8

$3,362.8

Analysis

The President has requested $3 .2 billion for the Forest Service in FY 1995,

a net decrease of $6 .9 million (0 .2 percent) from FY 1994 appropriations . This

request would support 39,564 FTEs, a decline of 606 FTEs (1 .5 percent) from

FY 1994. The request includes numerous shifts among budget line items, mostly

related to two relevant Presidential plans and two agency initiatives . In

addition, the Forest Service has proposed reforming its budget structure .

Forest Plan for the Pacific Northwest

In July 1993, President Clinton proposed a draft forest plan for the Pacific

Northwest . The budget request includes $97 .0 million, up $1 .2 million from FY

1994, in watershed protection, timber sales, adaptive management,

implementation, rural assistance, and ecosystem restoration . However, this

funding is not distinguished in the line items, and thus cannot readily be

tracked through the appropriations process .

Climate Change Action Plan

Following the Earth Summit held in Rio de Janeiro in June 1992, the

Clinton Administration pledged $1 .9 billion of new and redirected funding to

support the Convention on Climate Change . The Forest Service budget request

includes $5 .4 million for recycling research and increasing forest cover on

nonindustrial private forestlands. As with the forest plan for the Pacific

Northwest, this funding is not identified in separate line items, and thus cannot

readily be tracked through the appropriations process .

CRS- 13

Initiatives

The Forest Service is requesting $10 .0 million to continue ecosystem

research begun in FY 1994, and supplemented by $2 .5 million for research to

support implementation of the forest plan for the Pacific Northwest . However,

this $12 .5 million is less than the $13 .6 million requested in the budget line item

for ecosystem research (continuing the budget line item begun in FY 1994).

The Forest Service is requesting $79 .0 million in three categories for

natural resource protection and environmental infrastructure . Ecosystem

restoration -- through the budget line items for soil, water, and air management ;

wildlife and fish habitat; and range improvements -- would be funded at $43 .0

million . The budgets for these three line items are proposed to increase, but by

only $35 .9 million over FY 1994 .

Recreation, trail, and road maintenance --to address the backlog of deferred

maintenance and restoration -- would be funded at $27 .0 million . However, the

initiative proposes $17.0 million for recreation use, but the budget line item is

proposed to increase by only $7 .3 million . Similarly, the initiative proposes a

$4.0 million increase in trail maintenance, but the budget line item is proposed

to increase by only $2 .3 million . In contrast, the initiative proposes a $6 .0

million increase in road maintenance, while the budget line item is proposed to

increase by $7 .2 million .

Infrastructure restoration and rehabilitation to rebuild and/or replace

deteriorated facilities, roads, and trails would be funded at $9 .0 million . Of this,

$4.0 million would be for recreation, fire, administrative, and other facilities, to

address the $1,128 million backlog of deferred maintenance and repair needs ;

however, a $34.6 million decline is proposed in the facilities construction budget

line item . The initiative proposes $2 .0 million for trail construction, but the

budget line item for trail construction in FY 1995 is unchanged from FY 1994 .

Finally, the initiative proposes $3 .0 million for recreation support roads (for

access to recreation areas), while the road construction budget line item is

proposed to increase by $24 .0 million in FY 1995 .

Budget Reform

The Forest Service is proposing budget reform as its initial step in

"reinventing the Forest Service," a response to Vice President Gore's National

Performance Review . The goal of budget reform is "to facilitate implementation

of ecosystem management, reduce the complexity and improve the efficiency of

the current system." Fire, pest, and law enforcement activities would be

consolidated under one heading, and land acquisition under another .

Construction would be eliminated by distributing the construction budget to

capital investments for the relevant resource or activity . Separate research

budget line items would be eliminated, while the 16 line items for the National

Forest System (excluding construction) would be reorganized into 3 categories :

ecosystem planning, inventory, and monitoring ; operations and maintenance ;

and capital investments . Details would be available by resource, but funding by

CRS- 14

resource would be terminated . Expanded reprogramming authority and accountability through greater reporting are also proposed .

Major Proposed Changes in the Budget

The Forest Service budget request includes numerous changes that seem

unrelated to the plans and initiatives described above . Major increases from FY

1994 appropriations include :

•

ecosystems research: $6 .1 million (81 percent) ;

international forestry : $3 .0 million (43 percent);

road construction : $24 .0 million (25 percent);

law enforcement: $8 .8 million (16 percent), after increasing $39 .7

million (256 percent) in FY 1994 ;

Knutson-Vandenberg (K-V) Fund:

$40.4 million (18 percent),

including an increase of $26 .3 million (40 percent) for nontimber

activities and of $14 .1 million (9 percent) for timber activities to offset

a reduction of $5 .2 million (8 percent) in appropriations for

reforestation and stand improvement ;

soil, water, and air management : $16 .5 million (21 percent) ;

wildlife and fish habitat : $14 .1 million (12 percent) ; and

range management : $5 .2 million (12 percent) .

The major decreases proposed include :

•

watershed restoration : $20 .0 million (100 percent) ;

cooperative fire protection : $13 .4 million (78 percent);

salvage sale fund expenditures : $82 million (39 percent) ;

facility construction : $34.6 million (35 percent) ;

Forest Service-built purchaser roads : $2 .5 million (30 percent);

special cooperative projects : $3.5 million (18 percent) ; and

timber sales : $10 .9 million (6 percent), despite $11 .9 million more for

timber sales in the Pacific Northwest Forest Plan .

These changes generally suggest a shift away from timber sales, facilities (except

roads), and some cooperative programs, and toward resource protection and

nontimber resource management .

U.S . FISH AND WILDLIFE SERVICE'

Mission

The Fish and Wildlife Service is responsible for the protection and

conservation of migrating birds, endangered species, certain marine mammals,

specific fishery and wildlife research, and lands in the National Wildlife Refuge

Prepared by Alfred R . Greenwood, Senior Analyst in Natural Resources

Policy, Environment and Natural Resources Policy Division .

CRS- 1 5

System. The Service employs approximately 7,200 personnel who manage 92

million acres which include 510 wildlife refuges, 32 waterfowl production areas,

51 coordination areas, 77 fish hatcheries, 13 major research and development

centers, 89 research field stations, and 43 cooperative research units at various

universities .

The Service's predecessor agency, the Bureau of Fisheries, was established

as an independent agency in 1871 and later transferred to the Department of

Commerce . The Bureau of Biological Survey was established in 1885 in the

Department of Agriculture .

These two bureaus were transferred to the

Department of the Interior in 1939 and were included in the Fish and Wildlife

Service in 1940 by Reorganization Plan Ill . In 1956, the Fish and Wildlife Act

reorganized the agency and established the Bureau of Commercial Fisheries and

the Bureau of Sport Fisheries and Wildlife . However, the Bureau of Commercial

Fisheries was transferred to the Department of Commerce in 1970 . The Service

was renamed the United States Fish and Wildlife Service in 1974 .

Table 7. U .S. Fish and Wildlife Service Budgets, FY 1993-1995

(in millions of dollars)

(Appropriations)

FY 1995

(Request)

FY 1994

(Estimate)

FY 1993

(Actual)

Current

Permanent

$710 .6

$524.8

$680.7

$504.1

$750 .0

$557 .1

Total

$1,235 .4

$1,184 .8

$1,307 .1

Analysis

The Service has requested $1 .24 billion (including $710 .6 million of current

appropriations) for FY 1995, an increase of $51 million, four percent over FY

1994 . However, a total of $73 .3 million of current appropriations increases are

requested which are offset by program decreases including a $36 .1 million

decrease in construction ($20 .4 million for wildlife refuges, $11 .9 million for dam

safety, and $2 .6 million for bridge safety) . Almost $42 million of the proposed

increase involves three of the Department of the Interior's priority investment

initiatives .

Forest Plan for the Pacific Northwest

The Service is requesting $20 .3 million to undertake changes in the

designation of critical habitat for the northern spotted owl and to provide funds

to California, Oregon, and Washington to monitor owl populations, for

watershed planning, promotion of ecosystem conservation, and continued

funding of the "Jobs in the Woods" ecosystem restoration projects for

unemployed timber workers .

CRS-16

North American Free Trade Agreement Conservation Activities

The Service's request includes a total of $10 .9 million to develop

conservation and protection measures for fish and wildlife resources and their

habitat along the U .S. and Mexico border . Of this amount, $4 .1 million will be

used for ecological services to permit the Service to work with Mexican agencies

to prevent and mitigate potential impacts to endangered, threatened and

candidate species . The U .S. and Mexico share a number of threatened and

endangered species including sea turtles, falcons, spotted owl, desert tortoise,

wolf, and ocelot . Another $5 .4 million is requested for funding increases for

refuges, law enforcement and migratory bird management programs, and $1 .4

million is being sought for the management of border fishery and aquatic

resources . Within these Service requests, a total of $2 .3 million will be used for

Fish and Wildlife Service Cooperative programs with Mexico related to NAFTA,

including training and protected areas management .

South Florida Ecosystem Restoration

The Service is requesting nearly $8 million, a $2 .9 million increase over FY

1994, for its participation in the South Florida Ecosystem Restoration Task

Force established in 1993 . Nearly $2 million of the increase is requested to

include status surveys and recovery activities related to the Florida panther,

cape sable sparrow, Lower Keys marsh rabbit, silver rice rat, and other species .

The Service also will seek to establish a Florida and Everglades Bay/Estuary

program . The balance of the increase will be used for projects to restore

wetlands on refuge lands to protect native plants benefitting the many species

that inhabit the Everglades and for the Service's work involving the Gulf

Sturgeon recovery plan .

Resource Management Focus

Of the $710 million requested for FY 1995, $540 million is for Resource

Management activities which have increased substantially in the last two years,

since research and development (which totalled $86 .5 million in FY 1993) was

transferred to the National Biological Survey in FY 1994 . The FY 1995

Resource Management budget is $16 million less than FY 1993 but is an

increase of $58 .1 million over FY 1994 . One major decrease is proposed for FY

1995: a decline of $38.1 million (52 percent) for construction . Other principal

changes in the Resource Management budget for FY 1995 include the following

increases :

•

ecological services: $38.9 million

(endangered species : $22.7 million)

(habitat conservation : $14.9 million)

refuges and wildlife : $5 .7 million

fisheries : $ .6 million

general administration : $12.8 million

Natural Resource Damage Assessment and Restoration Fund : $1.0

million

CRS-1 7

•

acquisition of land : $3.5 million

National Wildlife Refuge Fund : $1.7 million

African Elephant Conservation Fund : $1 .9 million

Cooperative Endangered Species Fund : $1 .6 million

NATIONAL BIOLOGICAL SURVEY 6

Mission

The National Biological Survey (NBS) is a new agency, created under the

executive authority of the Interior Secretary . It lacks any new authorizing

legislation, although it assumes many existing responsibilities previously

handled by other agencies . The agency is, in many ways, still defining itself .

Interior Secretary Bruce Babbitt stated in the FY 1995 budget request for the

National Biological Survey:

The National Biological Survey will produce the map we need to avoid

the economic and environmental "train wrecks" we see scattered across

the country. NBS will provide the scientific knowledge America needs

to balance the compatible goals of ecosystem protection and economic

progress .

Just as the U.S. Geological Survey gave us an

understanding of America's geography in 1879, the National Biological

Survey will unlock information about how we protect ecosystems and

plan for the future .

Many, perhaps most, of the biological research and data management

activities within the Department of the Interior have been gathered into NBS .

The great bulk of the employees making up the agency have been transferred

from other agencies, chiefly the Fish and Wildlife Service .

The agency plans to focus first on information sharing and research

collaboration with State and local governments, other Federal agencies,

universities and museums, and private organizations. The mammoth task of

field collections to survey the millions of species that are likely to be present in

the United States is not likely to be the first order of business . Particular

groups of species (e .g., migratory birds, or freshwater mollusks) and particular

ecosystems (e.g., south Florida, or Pacific Northwest forests) will instead be the

focus of effort, as will the data needs of other agencies within the Department

of the Interior .

The agency began on November 11, 1994 . The Clinton Administration did

not seek congressional authorization, but authorization bills were introduced in

both the House and Senate . H.R. 1845 was amended and passed by the House

Committees on Merchant Marine and Fisheries and on Natural Resources . It

was considered by the full House on October 6, 1993 and passed on October 26 .

6 Prepared by M. Lynne Corn, Specialist in Natural Resources Policy,

Environment and Natural Resources Policy Division .

CRS-18

Several amendments were offered and some were accepted . No action has been

taken by the Senate on S . 1110 or H .R. 1845 . Primary issues in the debate were

the concern that the NBS might have management authority that would

interfere with rights of property owners, or that the information collected by

NBS would lead to restrictions on property owners via regulations administered

by other agencies . There were also concerns that the agency's use of volunteers

could lead to over-zealousness and harm private property interests . Advocates

of NBS argued that the agency would merely collect data and had no regulatory

authority . (See also request overview and issues, below .)

Appropriations for NBS were included in the Interior Appropriations Act

(P.L. 103-138) . The Act provided that "none of the funds ... [for NBSI shall be

used to conduct new surveys on private property unless specifically authorized

in writing by the property owner ." The Senate version of the bill included

language that prohibited the use of volunteers in the data-gathering of NBS, but

this language was deleted in conference (H .Rpt . 103-299) .

Table 8 . National Biological Survey Budgets, FY 1993-1995

(in millions of dollars)

FY 1995

(Request)

FY 1994

(Estimate)

FY 1993

(Actual)

$176 .8

$167 .2

N/A'

* The agency was not established prior to FY 1994 .

Analysis

In an agency whose entire existence is measured in months, changes are

difficult to measure . The FY 1995 request represents the first budget for the

first full year of the agency's existence . Of the $9 .6 million increase requested

for FY 1995, $5 .0 million is in Ecosystems Research, and $3 .9 million is in

Information Transfer . Ecosystems research will emphasize the South Florida

area and Pacific Northwest forest ecosystem . There will also be an initiative on

non-native species, such as the zebra mussels of the Great Lakes, and various

introduced pest plants, such as spotted knapweed . Information transfer will

emphasize development and coordination of existing biological data bases .

Management of spatial data will also be a priority .

Issues in the debate over NBS funding seem likely to follow the pattern of

FY 1994 . There is likely to be relatively little emphasis on the types and forms

of the research conducted by this agency, and more on the implications of its

existence and of its efforts for other issues . If the Senate chooses to move an

authorizing bill before the appropriations process proceeds very far, the

authorization is likely to become the focus of debate . Most observers feel such

action is unlikely.

CRS- 19

If the debate focuses on the appropriations process, the issues below are

likely to arise . Many focus on private property rights .

•

Restricting the use of volunteers by NBS . Such a restriction, designed

to address the concerns of some landowners, would eliminate some of

the programs which have been transferred to NBS and currently rely

on volunteers . The national Breeding Bird Survey, formerly managed

by the Fish and Wildlife Service, is the most commonly cited example .

If such language were added, the Breeding Bird Survey would probably

be transferred back to FWS so that the data could continue to be

collected.

•

Use of volunteers by cooperating institutions . If the use of volunteers

becomes a focus, the debate may extend to cooperating institutions .

Examples of institutions which might cooperate with NBS and use

volunteers extensively include research museums, universities, State

parks, the Heritage Program of the Nature Conservancy, and the

National Audubon Society . These organizations often use volunteers,

including unpaid students, to gather data on many types of

information . A strict prohibition on volunteers could lead to a lack of

NBS access to the data these organizations collect .

•

Access to private property . One issue is the current restriction in the

FY 1994 appropriation that requires the permission of landowners for

access . Many legal experts would like to add language to address the

interests of leaseholders and tenants as well . A second, and more

controversial, issue is the more general access to private lands .

Specific concerns involve aerial surveys and other forms of access that

do not involve physical presence on the property .

•

The NBS appropriation could be a center of controversy for those

wishing to amend the Endangered Species Act, which is not expected

to receive floor consideration this year . It is difficult to speculate on

the form such a debate might take .

•

There may be controversy over efficient merger of NBS efforts with

research now occurring in other institutions . Considerable biological

survey data are now stored in museums and on computers . Examples

range from specimens collected by the Lewis and Clark Expedition to

Landsat telemetry data. The scientific community is united in

wanting to build on, rather than re-create, the existing data . The

integration of resources and data is a mammoth task, and no clear

strategy has been agreed on to achieve it .

CRS-20

BUREAU OF RECLAMATION 7

Mission

The Bureau of Reclamation (Bureau) supplies water to approximately 28

million people each year through hundreds of Federal facilities in the 17

Western States from the Great Plains to the Pacific Ocean . The Reclamation

Act of 1902 authorized the Secretary of the Interior to initiate a reclamation

program to develop water supplies for irrigable lands in the arid West ; however,

individual projects and studies are authorized under numerous separate acts .

Major laws amending the 1902 Act include the Reclamation Project Act of 1939,

and the Reclamation Reform Act of 1982, as amended . Additionally, the

Reclamation Projects Authorization and Adjustment Act of 1992 authorizes

numerous management and operational changes affecting specific reclamation

projects .

The Bureau of Reclamation was preceded by the Reclamation Service in the

U.S. Geological Survey . The Reclamation Service was later established as a

separate Interior agency (1907) and in 1923 was renamed the Bureau of

Reclamation . Although initially conceived as a way to provide irrigation water,

Bureau projects currently serve many purposes including flood control,

municipal and industrial water supply, recreation, and fish and wildlife

enhancement . Approximately 85 percent of the 30 million acre-feet of water

delivered annually through Bureau facilities is used for irrigation .

Bureau project construction expanded during the 1930s and 1940s, and

continued rapidly until the late 1960s and early 1970s . Growing concerns over

the environmental impacts of large projects, changing local needs, increasing

construction costs, and prior development of prime locations for water works,

all contributed to a decline in new construction of major water projects in the

late 1970s and early 1980s . Over the past decade the Bureau has struggled with

its transition from an engineering and construction oriented agency to one with

a focus on the operation and management of existing facilities and mitigation

of environmental degradation .

Table 9. Bureau of Reclamation Budgets, FY 1993-1995

(in millions of dollars)

FY 1995

(Request)

FY 1994

(Estimate)

FY 1993

(Actual)

$797 .2

$912.9

$911 .3

v Prepared by Betsy A . Cody, Analyst in Natural Resources Policy,

Environment and Natural Resources Policy Division .

CRS-21

Analysis

The FY 1995 budget request includes $797 million for the Bureau of

Reclamation, a decrease of nearly 13 percent from FY 1994 (enacted) . The total

budget request for FY 1995 is $836 .5 million, 11 .4 percent less than in FY 1994,

including expenditures on and an anticipated offset of $39 .4 million in receipts

from the Central Valley Project (CVP), which will go toward the CVP

Restoration Fund . The Bureau's construction program is down $83 .5 million

(18 percent) from FY 1994 . This account alone makes up nearly three-quarters

of the overall decrease from FY 1995 to FY 1994 . The Bureau's general

investigations program, which includes funding for studies and preparation for

new projects, would decrease nearly 10 percent, and due to the completion of a

major project, the loan program would decrease 73 percent ($13 .5 million to $3 .6

million) . The agency's operations and maintenance (O&M) program would

increased slightly (less than one percent) to $284 .2 million .

The FY 1995 request reflects a trend from water resources development

toward water management, with a focus on water conservation and attention to

environmental, natural resources, and recreational needs . For example, of the

17 construction program items summarized in the President's budget request,

only five received an increase from FY 1994, three of which involve work for

threatened and endangered species and another for recreation . Throughout the

President's budget request summary and the Bureau's budget explanatory notes,

the Administration emphasizes a "shift in emphasis from water project

construction to water resource management ." In line with this shift, the agency

notes it will reduce its Denver office staff size and other administrative costs .

Issues affecting the Bureau include the implementation of the Central

Valley Project Improvement Act (Title 34, P .L. 102-575), the financial status of

the Central Arizona Project, the scope of an environmental impact statement on

establishing rules to implement the 1982 reforms, and activities to meet

requirements of the Endangered Species Act and Clean Water Act at several

Bureau facilities. Historical project beneficiaries are wary of being asked to

undertake conservation efforts, pay more for project water, or give up traditional

water supplies, to meet new demands on the Bureau water supply .

U.S. GEOLOGICAL SURVEY 8

Mission

The U.S . Geological Survey (USGS) was established as a bureau within the

Department of the Interior by an Act of Congress on March 3, 1879, to provide

a permanent Federal agency to conduct the systematic and scientific

"classification of the public lands and examination of the geologic structure,

mineral resources, and products of the national domain ."

Prepared by James E . Mielke, Specialist in Marine and Earth Sciences,

Science Policy and Research Division .

CRS-22

As the Nation's largest earth science research and information agency, the

USGS addresses such questions as : How can we ensure an adequate supply of

critical water, energy, and minerals in the future? In what ways are we

irreversibly altering our natural environment when we use these resources?

How has the global environment changed over geologic time, and what can the

past tell us about the future? How can we predict, prevent, or mitigate the

effects of natural hazards? The primary mission of the USGS is to collect,

analyze, and disseminate the scientific information needed to answer these

questions . This information is provided to the public in many forms including

maps, reports, and data bases that provide descriptions and analyses of the

water, energy, and mineral resources, the land surface, the underlying geologic

structure, and the dynamic processes of the Earth .

Table 10. U.S. Geological Survey Budgets, FY 1993-1995

(in millions of dollars)

FY 1995

(Request)

FY 1994

(Estimate)

FY 1993

(Actual)

$583 .7

$584 .7

$581 .1

Analysis

The President has requested $583 .7 million for the U .S. Geological Survey

in FY 1995, a net decrease of $1.0 million from FY 1994. The FY 1995 budget

includes a $30 .8 million increase for several high-priority environmental

protection programs balanced by a $31 .8 million reduction in administrative and

salary costs, as well as reductions or redirections in several other programs . The

programs proposed for increased funding include the following .

Water Quality

The 1995 request includes $58 .2 million for the National Water Quality

Assessment Program, a $6 million increase . The program is monitoring water

quality in parts of 45 States . The increase will continue assessment activities

in the first 20 study units begun in 1991 ; analysis and interpretation of

available water quality information in 15 of the 20 study units started in 1994 ;

and continuation of national data synthesis activities for pesticides, nutrients,

and volatile organic compounds to assist Federal agencies in strengthening the

Clean Water Act .

Critical Ecosystems Research and Assessment

A new initiative in the USGS budget represents an increase of $3 .8 million

to provide data, research, and analysis for improving the understanding and

management of critical ecosystems .

CRS- 23

South Florida

An $8 million increase will enable the USGS to play an important role in

a departmental initiative to provide a comprehensive, long-term proposal for

ecosystem restoration in South Florida, with particular focus on the Everglades .

With the increase, the USGS will collaborate with several other agencies to

provide a geographic information system that will be used to define how the

hydrogeologic system operates and how it responds to alternative water

management strategies .

Cartographic Data Production

A $6 million increase is requested for high priority digital cartographic data

needed in the near-term by the Department and other Federal and State

agencies to support resource management decisions .

National Spatial Data Infrastructure

Another $6 million is requested for a National Performance Review

initiative to establish the National Spatial Data Infrastructure . The increase

supports establishing a national geospatial data clearinghouse and related

activities . Apparently, this is considered an important step in meeting the

recommendations of Vice President Gore's National Performance Review

Initiatives for the Department of the Interior.

Watershed Modeling

An increase of $1 million is requested for a new program to develop, test,

and implement computer programs in hydrologic modeling to help water

managers improve water use . A pilot study will address major issues such as

flow regulation as it relates to endangered fish, competition for water, and

Indian water rights .

The Earthquake Hazards Reduction program will be level funded at $49 .2

million .

Administrative streamlining and cost reductions will be achieved by

tightening controls on travel, printing and reproduction costs, and supplies and

materials . Teleconferencing will be used to reduce travel between headquarters

and field offices .

CRS-24

MINERALS MANAGEMENT SERVICE 9

Mission

The Minerals Management Service (MMS) was established in 1982 by

Executive Order (No . 3071) as a part of the Department of the Interior'(DOI) .

It administers the offshore minerals program and the Royalty Management

Program (RMP) . Collection and distribution of mineral revenues are carried out

by the RMP . The MMS also enforces compliance regulations and verifies

production through an audit system . The MMS collects about $4 .7 billion in

revenues annually, although this amount fluctuates with the value of

production . During the early 1980s, total revenues averaged about $10 billion

annually . The revenues collected from Federal leases are bonus bids, rentals,

and royalties . Offshore oil and gas revenues are typically 75 percent or more of

these revenues .

The revenues from onshore leases are distributed to States in which they

were collected, the General Fund of the U .S . Treasury, and other designated

programs . All States except Alaska receive 50 percent of the revenue collected

from public land oil and gas leases . Revenues from the offshore leases are

allocated in varying amounts among the coastal States, the Land and Water

Conservation Fund, the Historic Preservation Fund, and the General Treasury .

Royalties on competitive and noncompetitive leases are not less than 12 .5

percent in amount or value of the production removed or sold from the lease .

Competitive and noncompetitive leases extend up to a 10-year term and as long

thereafter as the mineral is commercially produced .

Table 11 . Minerals Management Service Budgets, FY 1993-1995

(in millions of dollars)

FY 1995

(Request)

FY 1994

(Estimate)

FY 1993

(Actual)

$201.2

$198.5

$195 .3

Analysis

The FY 1995 MMS budget request is $201 .2 million, $2 .7 million more than

FY 1994 appropriations and about $800,000 less than the FY 1994 request . The

MMS is under increased pressure to improve its audit procedures and the

collection of royalties and to ensure "optimum value" returns to the Federal

Treasury . The MMS is requesting $4 million more for its Royalty Management

9 Prepared by Marc Humphries, Analyst in Energy Policy, Environment and

Natural Resources Policy Division .

CRS-25

Program, while the FY 1995 Outer Continental Shelf (OCS) request is $2

million less than the FY 1994 appropriations .

The Administration is continuingyear-by-year OCS leasing moratoria along

many of the coastal states . In other OCS related activity, the Senate Energy

Committee approved a bill (S . 318) to provide royalty relief to offshore oil

producers who produce in depths of 200 meters or more . A similar bill (H.R.

1282) was introduced in the House during the 1st session of the 103rd Congress,

but hearings have not yet been held .

The National Performance Review task force report recommends that MMS

improve its efficiency and auditing practice of the RMP so that it can begin to

collect royalty payments that may have previously gone uncollected . This

improved system should collect an additional $28 million over a 5-year period

($5 .6 million annually) . The legislative vehicle to address these royalty

collection problems is H.R. 3400 passed by the House . The Senate Committee

on Governmental Affairs held hearings on H .R. 3400 in February 1994 .

U.S. BUREAU OF MINES 1°

Mission

Historically, the mission of the Bureau of Mines, created in 1910, has been

twofold . First, the Bureau has provided research to promote greater health and

safety for the coal and hardrock mining labor force . Second, the Bureau has

functioned as the statistician for the Nation's mineral producing and consuming

industries by collecting and disseminating data on mineral resources and

reserves, production, employment, and other industry activity .

Over the past twenty years, however, the market served by the Bureau has

eroded, as the United States has shifted from basic industries to a service and

advanced-technology economy with a greater awareness of environmental quality

and impacts . Recognizing that these developments may call for some

reorientation, the Bureau has prepared a program review titled "Reinventing the

USBM ." According to the Bureau, its mission is now "...to help ensure that the

Nation has an adequate and dependable supply of minerals to meet its defense

and economic needs at acceptable environmental, energy, and economic costs ."

10 Prepared by Duane A . Thompson, Analyst in Energy and Minerals Policy,

Environment and Natural Resources Policy Division .

CRS-26

Table 12 . U.S. Bureau of Mines Budgets, FY 1993-1995

(in millions of dollars)

FY 1995

(Request)

FY 1994

(Estimate)

FY 1993

(Actual)

$150 .7

$170 .5

$175 .8

Analysis

The President is proposing a budget of approximately $150 .7 million for the

Bureau of Mines, a 12 percent decrease from the FY 1994 budget of $170 .5

million. The prospect of less funding, and other developments, has spurred a

self-examination by the Bureau to adjust its mission and structure to deal more

effectively with high priority issue areas .

Changes proposed in the Bureau's internal review are reflected in the 1995

budget request . First, data collection will be reduced to $30 .2 million, a decrease

of 26.8 percent from the $40 .7 million of FY 1994 . Data collection and analysis,

both domestic and foreign, will be limited to only the significant minerals on

public lands (at home), and to only major minerals exporters abroad .

The Bureau has determined that it must concentrate more of its energies

on environmental research, particularly for reclamation of mined public lands .

To offset the cost of cleanup research, the Bureau is hoping to tap into

anticipated revenues from annual fee assessments for holding mining claims-contained in mining law reform legislation (H .R. 322) now in conference . With

the exception of a minor increase in finance and management, Environmental

Technology is the only Bureau subactivity for which an increase is being sought :

from $20 .8 million in FY 1994 to $24 .6 million in FY 1995 (18 percent) . The

Bureau intends to add to the value of these efforts by sharing its expertise with

the Environmental Protection Agency, the Office of Surface Mining, and other

agencies responsible for environmental regulation.

Finally, the Bureau intends to concentrate its energies on research that the

private sector would be willing to cost-share . In the past, the Bureau has borne

the cost of developing technologies that, in many cases, it successfully has

transferred to the private sector . In a reversal, the Bureau now says that

industry should share the cost and that " . . .specific research that is not costshared should be phased out". This policy modification is reflected in the budget

decreases in such politically sensitive areas as mine health and safety . For FY

1995, the Bureau has requested a total of $45.7 million in health, safety, and

mining technology, a decrease of 11 .7 percent from the $51 .7 million enacted in

FY 1994 . For other minerals and materials science research, the Bureau is

asking for $19 .6 million, down 20 .3 percent from the $24 .6 million enacted in FY

1994.

CRS-27

11Th OFFICE OF SURFACE MINING RECLAMATION AND

ENFORCEMENT 11

Mission

The mission of the Office of Surface Mining (OSM) is generally twofold .

First, the agency is responsible for ensuring that coal surface mining will be

conducted in an environmentally sound manner followed by reclamation to

restore land to a condition fully capable of supporting its pre-mining land uses .

The day-to-day responsibility of the Office is largely oversight, since the primary

regulatory function has been transferred to State regulatory agencies .

Second, using the proceeds of a coal production fee, OSM facilitates

reclamation of minesites abandoned before enactment of the Surface Mining

Control and Reclamation Act (SMCRA) with its Abandoned Mine Land (AML)

program . This generally is achieved in two ways . First, the agency distributes

a portion (typically half) of fee collections as grants back to the States that have

been awarded regulatory primacy . These grants are used to accomplish

reclamation of AML sites identified as high priority public health and/or safety

hazards . Second, OSM uses the remainder of fee collections for other federally

administered programs, most of which provide additional mechanisms for

abandoned land reclamation . The one exception provides assistance to mine

operators through the Small Operator's Assistance Program (SOAP) .

Table 13 . Office of Surface Mining Budgets, FY 1993-1995

(in millions of dollars)

(Program)

Regulatory/Technical

Abandoned Mine

Land Activities

FY 1995

(Request)

FY 1994

(Estimate)

FY 1993

(Actual)

$111 .4

$111 .7

$112 .9

$167 .0

$190.1

$191 .8

Analysis

In its FY 1995 budget request, the Office of Surface Mining is seeking to

transfer more regulatory and reclamation responsibility to the States . The

Agency emphasizes that the various coal-mining States have gained the

expertise to better allocate reclamation dollars and that cutting or eliminating

Federal counterpart programs would avoid unnecessary duplication of

administrative costs . However, this has been criticized as a reversion to the

Prepared by Duane A . Thompson, Analyst in Energy and Minerals Policy,

Environment and Natural Resources Policy Division .

CRS-28

decentralized regulatory framework that preceded SMCRA and led to the

establishment of OSM.

The potential savings from transferring the regulatory and technology

functions of the OSM back to the States might not be realized immediately . A

significant portion of savings resulting from the transfer may be lost to the cost

of moving the administrative function . For example, the proposed savings from

FY 1994 to FY 1995 only amount to slightly more than $300,000, with a

decrease of 28 FTEs, 4 percent from the 703 FTEs in FY 1994. However, as the

transition to State authority and administration is completed, greater savings

in subsequent fiscal years should be possible .

OSM's abandoned lands program is earmarked for greater reductions in

funding. According to the budget request, OSM is requesting approximately

$167 million in total reclamation funding for FY 1995, down $23 million (13 .8

percent) from FY 1994 . Of this, $10 million is being cut from State reclamation

program grants . The reason for the proposed reduction is that the reclamation

pipeline is backed up, with the States having reached their limits in absorbing

Federal reclamation dollars, and that $60 million from prior years funds will be

carried over into FY 1995 .

The largest cut, however, is being proposed for the controversial Rural

Abandoned Mine Program (RAMP) . RAMP is a program to reclaim, in

partnership with landowners, agricultural land despoiled by surface coal mining

that preceded the enactment of SMCRA, and originally was administered by the

Appalachian Regional Commission . The program was limited to the 100-plus

counties included in the Region, but through SMCRA, the program became

national. Although the funding for RAMP is collected by the Interior

Department as a portion of the coal fee assessments, the program is actually

administered by the Soil Conservation Service within USDA . Funding cuts for

the RAMP total $132 million and 85 FTEs .

The Clinton Administration, as have the preceding Republican

Administrations, is proposing to completely eliminate RAMP . The argument for

dropping the program, according to the Administration, is that it would

eliminate "... a duplicative delivery system for AML funding . States will be able

to perform RAMP-type projects as part of their AML programs" . In prior years,

Congress chose to reinstate funding proposed for elimination by the Reagan and

Bush Administrations .

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.