Interior, Environment, and Related Agencies: FY2007 Appropriations

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Interior, Environment, and Related Agencies:

FY2007 Appropriations

(name redacted), Coordinator

Specialist in Natural Resources Policy

March 7, 2007

Congressional Research Service

7-....

www.crs.gov

RL33399

CRS Report for Congress

Prepared for Members and Committees of Congress

Interior, Environment, and Related Agencies: FY2007 Appropriations

Summary

The FY2007 Interior, Environment, and Related Agencies appropriations bill includes funding for

the Department of the Interior (DOI), except for the Bureau of Reclamation, and for two agencies

within other departments—the Forest Service within the Department of Agriculture and the

Indian Health Service within the Department of Health and Human Services. It also includes

funding for arts and cultural agencies; the Environmental Protection Agency, which was recently

transferred to the appropriations subcommittees that deal with Interior and Related Agencies; and

numerous other entities and agencies.

On June 29, 2006, the Senate Appropriations Committee reported H.R. 5386 (S.Rept. 109-275),

providing $26.05 billion for Interior, Environment, and Related Agencies for FY2007, $110.8

million (0.4%) above the House-passed level ($25.94 billion). The Senate Appropriations

Committee-reported level would have been a $384.0 million (1%) decrease from the FY2006

enacted level of $26.44 billion, but a $522.8 million (2%) increase over the President’s request for

FY2007 of $25.53 billion. Among the proposed decreases in the Senate Appropriations

Committee-reported bill for FY2007, from the FY2006 level, were the following:

•

$-209.5 million (9%) for the National Park Service (NPS);

•

$-153.5 million (10%) for the Fish and Wildlife Service (FWS);

•

$-123.6 million (3%) for the Forest Service (FS); and

•

$-108.5 million (1%) for the Environmental Protection Agency (EPA).

Among the increases for FY2007 were the following:

•

$147.5 million (5%) for the Indian Health Service (IHS);

•

$50.2 million (3%) for the Bureau of Land Management (BLM); and

•

$29.3 million (5%) for the Smithsonian Institution.

The Senate Appropriations Committee adopted a few amendments in addition to a Manager’s

package. One sought to require the Secretary of the Interior to re-negotiate leases for Outer

Continental Shelf (OCS) oil and gas lease sales where no royalties are currently being paid, and

to include the price thresholds that were inadvertently left out of leases from 1998 and 1999. A

second amendment, similar to House-passed language, would have prohibited funds in the bill

from being used to issue new lease sales to current OCS oil and gas lessees who do not have price

thresholds in their leases.

The Senate did not consider H.R. 5386, and Congress did not enact a regular annual

appropriations law for Interior, Environment, and Related Agencies for FY2007. Instead, funds

were included in P.L. 110-5, the Revised Continuing Appropriations Resolution for FY2007. The

law provides funding for FY2007 essentially at the FY2006 account levels, except where

otherwise stated. Funding below the account level is being determined by the agencies.

Congressional Research Service

Interior, Environment, and Related Agencies: FY2007 Appropriations

Contents

Most Recent Developments.........................................................................................................1

Introduction ................................................................................................................................1

FY2007 Budget and Appropriations ............................................................................................2

Current Overview .................................................................................................................2

Major Issues..........................................................................................................................3

Status of Bill .........................................................................................................................5

Title I: Department of the Interior................................................................................................5

Bureau of Land Management ................................................................................................5

Overview ........................................................................................................................5

Management of Lands and Resources..............................................................................6

Wildland Fire Management .............................................................................................7

Construction and Land Acquisition..................................................................................8

Fish and Wildlife Service ......................................................................................................9

Endangered Species Funding...........................................................................................9

National Wildlife Refuge System and Law Enforcement ............................................... 10

Avian Flu ...................................................................................................................... 10

Land Acquisition........................................................................................................... 11

Wildlife Refuge Fund.................................................................................................... 12

Multinational Species Conservation Fund (MSCF)........................................................ 12

State and Tribal Wildlife Grants .................................................................................... 13

National Park Service.......................................................................................................... 14

Operation of the National Park System.......................................................................... 14

United States Park Police (USPP).................................................................................. 16

National Recreation and Preservation ............................................................................ 16

Construction ................................................................................................................. 17

Land Acquisition and State Assistance........................................................................... 17

Historic Preservation..................................................................................................... 18

U.S. Geological Survey....................................................................................................... 19

Enterprise Information .................................................................................................. 20

National Mapping Program ........................................................................................... 21

Geologic Hazards, Resources, and Processes................................................................. 21

Water Resources Investigations ..................................................................................... 22

Biological Research ...................................................................................................... 22

Science Support and Facilities....................................................................................... 23

Minerals Management Service ............................................................................................ 24

Budget and Appropriations............................................................................................ 24

Oil and Gas Leasing Offshore ....................................................................................... 25

Office of Surface Mining Reclamation and Enforcement ..................................................... 27

Bureau of Indian Affairs...................................................................................................... 29

BIA Reorganization....................................................................................................... 31

BIA School System ....................................................................................................... 32

Departmental Offices .......................................................................................................... 33

Insular Affairs ............................................................................................................... 33

Payments in Lieu of Taxes Program (PILT) ................................................................... 34

Office of Special Trustee for American Indians.............................................................. 36

National Indian Gaming Commission............................................................................ 39

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Interior, Environment, and Related Agencies: FY2007 Appropriations

Title II: Environmental Protection Agency................................................................................. 39

Key Funding Issues............................................................................................................. 41

Water Infrastructure ...................................................................................................... 42

Superfund and Brownfields ........................................................................................... 43

EPA’s Homeland Security Activities .............................................................................. 44

Scientific Research........................................................................................................ 45

Clean Air Act Implementation and Research.................................................................. 46

Title III: Related Agencies......................................................................................................... 47

Department of Agriculture: Forest Service........................................................................... 47

Major FS Issues in Appropriations................................................................................. 48

Wildland Fire Management ........................................................................................... 49

State and Private Forestry.............................................................................................. 50

Infrastructure ................................................................................................................ 52

Other FS Accounts ........................................................................................................ 52

Department of Health and Human Services: Indian Health Service...................................... 53

Health Services ............................................................................................................. 55

Facilities ....................................................................................................................... 57

Office of Navajo and Hopi Indian Relocation ...................................................................... 58

Smithsonian Institution ....................................................................................................... 59

FY2007 Actions ............................................................................................................ 59

Facilities Capital ........................................................................................................... 59

National Museum of African American History and Culture.......................................... 60

National Zoo................................................................................................................. 60

Trust Funds ................................................................................................................... 60

Business Ventures ......................................................................................................... 61

National Endowment for the Arts and National Endowment for the Humanities................... 62

NEA ............................................................................................................................. 62

NEH ............................................................................................................................. 63

Cross-Cutting Topics................................................................................................................. 64

The Land and Water Conservation Fund (LWCF) ................................................................ 64

Overview ...................................................................................................................... 64

FY2007 Funding ........................................................................................................... 65

Everglades Restoration........................................................................................................ 67

FY2007 Funding ........................................................................................................... 68

Concerns Over Phosphorus Mitigation .......................................................................... 70

For Additional Reading ............................................................................................................. 73

Title I: Department of the Interior........................................................................................ 73

Land Management Agencies Generally ............................................................................... 74

Title II: Environmental Protection Agency........................................................................... 75

Title III: Related Agencies................................................................................................... 75

Figures

Figure 1. Forest Service FY2007 Budget Request...................................................................... 48

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Interior, Environment, and Related Agencies: FY2007 Appropriations

Tables

Table 1. Interior, Environment, and Related Agencies Appropriations, FY2004 to FY2006 ..........3

Table 2. Status of Interior, Environment, and Related Agencies Appropriations, FY2007 .............5

Table 3. Appropriations for the Bureau of Land Management, FY2006-FY2007 ..........................8

Table 4. Appropriations for Endangered Species and Related Programs, FY2005-FY2007 ......... 10

Table 5. Appropriations for FWS Land Acquisition Program, FY2005-FY2007 ......................... 11

Table 6. Appropriations for Multinational Species Conservation Fund and Neotropical

Migratory Bird Fund, FY2005-FY2007 .................................................................................. 12

Table 7. Appropriations for State and Tribal Wildlife Grants, FY2005-FY2007.......................... 13

Table 8. Appropriations for the National Park Service, FY2005-FY2007 ................................... 15

Table 9. Appropriations for the Historic Preservation Fund, FY2005-FY2007............................ 19

Table 10. Appropriations for the U.S. Geological Survey, FY2005-FY2007 ............................... 23

Table 11. Appropriations for the Minerals Management Service, FY2006-FY2007 .................... 25

Table 12. Appropriations for the Office of Surface Mining Reclamation and Enforcement,

FY2006-FY2007.................................................................................................................... 28

Table 13. Appropriations for the Bureau of Indian Affairs, FY2006-FY2007.............................. 30

Table 14. Authorized and Appropriated Levels for Payments in Lieu of Taxes,

FY2000-FY2007.................................................................................................................... 35

Table 15. Appropriations for the Office of Special Trustee for American Indians,

FY2006-FY2007.................................................................................................................... 36

Table 16. Appropriations for the Environmental Protection Agency, FY2006-FY2007 ............... 41

Table 17. Appropriations for the National Fire Plan, FY2003-FY2007....................................... 49

Table 18. Appropriations for FS State and Private Forestry, FY2004-FY2007 ............................ 52

Table 19. Appropriations for the Indian Health Service, FY2006-FY2007.................................. 54

Table 20. Appropriations for the Smithsonian Institution, FY2005-FY2007 ............................... 61

Table 21. Appropriations for Arts and Humanities, FY2005-FY2007 ......................................... 63

Table 22. Appropriations from the Land and Water Conservation Fund, FY2004-FY2007.......... 65

Table 23. Appropriations for Other Programs from the LWCF, FY2006-FY2007 ....................... 67

Table 24. Appropriations for Everglades Restoration in the DOI Budget, FY2005-FY2007........ 69

Table 25. Appropriations for Interior, Environment, and Related Agencies,

FY2004-FY2007.................................................................................................................... 71

Contacts

Author Contact Information ...................................................................................................... 76

Key Policy Staff........................................................................................................................ 76

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Interior, Environment, and Related Agencies: FY2007 Appropriations

Most Recent Developments

Interior, Environment, and Related Agencies are being funded by P.L. 110-5, the Revised

Continuing Appropriations Resolution for FY2007. The law continues funds at the FY2006

account level, unless otherwise specified. The law, enacted on February 15, 2007, required that

agencies and departments submit an allocation of funds below the account level within 30 days of

enactment. The submissions are to be sent to the House and Senate Appropriations Committees.

Introduction

The annual Interior, Environment, and Related Agencies appropriations bill includes funding for

agencies and programs in three separate federal departments, as well as numerous related

agencies and bureaus. It provides funding for Department of the Interior (DOI) agencies (except

for the Bureau of Reclamation, funded in Energy and Water Development appropriations laws),

many of which manage land and other natural resource or regulatory programs. The bill also

provides funds for agencies in two other departments: the Forest Service in the Department of

Agriculture, and the Indian Health Service in the Department of Health and Human Services, as

well as funds for the Environmental Protection Agency. Further, the annual bill includes funding

for arts and cultural agencies, such as the Smithsonian Institution, National Gallery of Art,

National Endowment for the Arts, and National Endowment for the Humanities, and for

numerous other entities and agencies.

In recent years, the appropriations laws for Interior and Related Agencies provided funds for

several activities within the Department of Energy (DOE), including research, development, and

conservation programs; the Naval Petroleum Reserves; and the Strategic Petroleum Reserve.

However, at the outset of the 109th Congress, these DOE programs were transferred to the House

and Senate Appropriations subcommittees covering energy and water, to consolidate jurisdiction

over DOE.1 At the same time, jurisdiction over the Environmental Protection Agency (EPA), and

several smaller entities, was moved to the House and Senate Appropriations subcommittees

covering Interior and Related Agencies.2 This change resulted from the abolition of the House and

Senate Appropriations Subcommittees on Veterans Affairs, Housing and Urban Development, and

Independent Agencies, which previously had jurisdiction over EPA.

The FY2006 Interior, Environment, and Related Agencies appropriations law contained three

primary titles providing funding. The regular, annual FY2007 legislation (H.R. 5386) followed a

similar organization, and this report is organized along these lines. Accordingly, the first section

(Title I) provides information on Interior agencies; the second section (Title II) discusses EPA;

and the third section (Title III) addresses other agencies, programs, and entities. A fourth section

of this report discusses cross-cutting topics that encompass more than one agency.

The report does not contain FY2007 enacted levels for agencies, programs, and activities because

these funding levels are being determined by the agencies, as provided under P.L. 110-5. In

1

The House panel is called the Subcommittee on Energy and Water Development and Related Agencies. The Senate

panel is entitled the Subcommittee on Energy and Water.

2

The House panel is called the Subcommittee on Interior, Environment, and Related Agencies. The Senate panel is

entitled the Subcommittee on Interior and Related Agencies.

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Interior, Environment, and Related Agencies: FY2007 Appropriations

general, in this report the term appropriations represents total funds available, including regular

annual and supplemental appropriations, as well as rescissions, transfers, and deferrals, but

excludes permanent budget authorities. Increases and decreases generally are calculated on

comparisons between FY2007 funding levels for the most recent action on H.R. 5386, and those

requested by the President for FY2007 and appropriated for FY2006. The House Committee on

Appropriations is the primary source of the funding figures used throughout the report. Other

sources of information include the Senate Committee on Appropriations, agency budget

justifications, and the Congressional Record. In the tables throughout this report, some columns

of funding figures do not add to the precise totals provided due to rounding.

FY2007 Budget and Appropriations

Current Overview

Funds for Interior, Environment, and Related Agencies for FY2007 are contained in P.L. 110-5,

the Revised Continuing Appropriations Resolution for FY2007. Continuing funding is needed to

fund agency operations and activities because Congress did not enact a regular FY2007

appropriations bill for Interior, Environment, and Related Agencies. P.L. 110-5 provides funds

though September 30, 2007, which is the rest of the fiscal year. It continues funds at the FY2006

account level, except where otherwise specified. The law requires that agencies and departments

submit an allocation of funds below the account level, for example for programs and activities, to

the House and Senate Appropriations Committees. The submissions are due within 30 days of

enactment, which occurred on February 15, 2007.

Prior to the enactment of P.L. 110-5, continuing funds were provided to Interior, Environment,

and Related Agencies through a series of laws to continue funds at the lower of either the FY2006

level or the House-passed level for FY2007. However, projects and activities that were included

in the FY2006 appropriations law, but not in the FY2007 House-passed bill, were funded at a

level not to exceed the FY2006 rate.

The last action on the FY2007 regular annual appropriations bill, H.R. 5386, occurred on June 29,

2006, when the Senate Committee on Appropriations reported the bill (S.Rept. 109-275). The bill

provided $26.05 billion for Interior, Environment, and Related Agencies for FY2007, $110.8

million (0.4%) above the House-passed level ($25.94 billion). The Senate Appropriations

Committee-reported level would have been a $384.0 million (1%) decrease from the FY2006

enacted level of $26.44 billion, but a $522.8 million (2%) increase over the President’s request for

FY2007 of $25.53 billion. Among the proposed decreases in the Senate Appropriations

Committee-reported bill for FY2007, from the FY2006 level, were the following:

•

$-209.5 million (9%) for the National Park Service (NPS);

•

$-153.5 million (10%) for the Fish and Wildlife Service (FWS);

•

$-123.6 million (3%) for the Forest Service (FS); and

•

$-108.5 million (1%) for the Environmental Protection Agency (EPA).

Among the increases for FY2007 were the following:

•

$147.5 million (5%) for the Indian Health Service (IHS);

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Interior, Environment, and Related Agencies: FY2007 Appropriations

•

$50.2 million (3%) for the Bureau of Land Management (BLM); and

•

$29.3 million (5%) for the Smithsonian Institution.

The Senate Appropriations Committee adopted a few amendments in addition to a Manager’s

package. One sought to require the Secretary of the Interior to re-negotiate leases for Outer

Continental Shelf (OCS) oil and gas lease sales where no royalties are currently being paid, and

to include the price thresholds that were inadvertently left out of leases from 1998 and 1999. A

second amendment, similar to House-passed language, prohibited funds in the bill from being

used to issue new lease sales to current OCS oil and gas lessees who do not have price thresholds

in their leases. In earlier action, on June 27, 2006, the Senate Interior Appropriations

Subcommittee marked up and agreed to H.R. 5386, without amendment.

On May 18, 2006, the House passed H.R. 5386, providing $25.94 billion for Interior,

Environment, and Related Agencies for FY2007. The House-passed level would have been a

$494.8 million (2%) decrease from the FY2006 enacted level of $26.44 billion, but a $412.0

million (2%) increase over the President’s request for FY2007 of $25.53 billion.

The House had considered many amendments to H.R. 5386, and agreed to a number of them.

They included amendments to prohibit funds in the bill from being used for the sale or slaughter

of wild horses and burros, building roads in the Tongass National Forest in Alaska for harvesting

timber, limiting the outreach programs of the Smithsonian Institution, and issuing new lease sales

to current Outer Continental Shelf (OCS) oil and gas lessees who do not have price thresholds in

their leases. The House also retained the moratoria on OCS leasing, and increased funds for the

NEA, NEH, and Payments in Lieu of Taxes program, among other changes.

Previously, on May 15, 2006, the House Appropriations Committee reported H.R. 5386 (H.Rept.

109-465), also with $25.94 billion for Interior, Environment, and Related Agencies for FY2007.

The House Appropriations Committee adopted a number of amendments during its markup before

ordering the bill reported.

Table 1 below shows the budget authority for Interior, Environment, and Related Agencies for

FY2004-2006. See Table 25 for a budgetary history of each agency for FY2004-FY2007.

Table 1. Interior, Environment, and Related Agencies Appropriations,

FY2004 to FY2006

(budget authority in billions of current dollars)

FY2004

FY2005

FY2006

$27.33

$27.02

$26.44

Note: These figures exclude permanent budget authorities, and generally do not reflect scorekeeping

adjustments. They generally reflect rescissions and supplemental appropriations to date.

Major Issues

One issue debated in this appropriations cycle was the distribution of proceeds from land sales

under the Federal Land Transaction Facilitation Act (FLTFA). This issue is covered briefly in the

“Bureau of Land Management” section, below. Also debated was the sale of certain National

Forest System lands. This issue is covered briefly in the “Forest Service” section, below. The

President’s FY2007 budget assumed enactment of legislation to open part of the Coastal Plain in

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Interior, Environment, and Related Agencies: FY2007 Appropriations

the Arctic National Wildlife Refuge to oil and gas exploration and development. This issue is

covered briefly in the “Fish and Wildlife Service” section, below. (For more information, see

CRS Report RL33872, Arctic National Wildlife Refuge (ANWR): New Directions in the 110th

Congress, by (name redacted), (name redacted), and (name redacted).)

Controversial policy and funding issues typically have been debated during consideration of the

annual Interior, Environment, and Related Agencies Appropriations bill. Debate on FY2007

funding levels encompassed a variety of issues, many of which have been controversial in the

past, including the issues listed below.

•

BIA Schools and IHS Hospitals, particularly whether to enact funding cuts

proposed in the President’s FY2007 budget. (For more information, see

the “Bureau of Indian Affairs” and the “Indian Health Service” sections in

this report.)

•

Clean Water and Drinking Water State Revolving Funds, especially the adequacy

of funding to meet state and local wastewater and drinking water needs. These

state revolving funds provide seed money for state loans to communities for

wastewater and drinking water infrastructure projects. (For more information, see

the “Environmental Protection Agency” section in this report.)

•

Indian Trust Funds, especially the method by which a historical accounting will

be conducted of Individual Indian Money (IIM) accounts to determine correct

balances in the class-action lawsuit against the government involving tribal and

IIM accounts. (For more information, see the “Office of Special Trustee for

American Indians” section in this report.)

•

Land Acquisition, including the appropriate level of funding for the Land and

Water Conservation Fund for federal land acquisition and the state grant

program, and extent to which the fund should be used for activities not involving

land acquisition. (For more information, see “The Land and Water Conservation

Fund (LWCF)” section in this report.)

•

Outer Continental Shelf Leasing, particularly the moratoria on preleasing

and leasing activities in offshore areas, and oil and gas leases in offshore

California. (For more information, see the “Minerals Management Service”

section in this report.)

•

Payments in Lieu of Taxes Program (PILT), primarily the appropriate level of

funding for compensating local governments for federal land within their

jurisdictions. (For more information, see the “Payments in Lieu of Taxes Program

(PILT)” section in this report.)

•

Royalty Relief, especially the extent to which oil and natural gas companies

receive royalty relief for production of oil and natural gas on federal lands. (For

more information see “MMS” section of this report.)

•

Smithsonian Institution, in particular its contract with CBS/Showtime that gives

certain rights to Showtime in accessing the Smithsonian’s collection. (For more

information see the “Smithsonian Institution” section of this report.)

•

Superfund, notably the adequacy of proposed funding to meet hazardous waste

cleanup needs, and whether to continue using general Treasury revenues to fund

the account or reinstate a tax on industry that originally paid for most of the

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Interior, Environment, and Related Agencies: FY2007 Appropriations

program. (For more information, see the “Environmental Protection Agency”

section in this report.)

•

Wildland Fire Fighting, involving questions about the appropriate level of

funding to fight fires on agency lands; advisability of borrowing funds from other

agency programs to fight wildfires; implementation of a new program for

wildland fire protection and locations for fire protection treatments; and impact

of environmental analysis, public involvement, and challenges to agency

decisions on fuel reduction activities. (For more information, see the “Bureau of

Land Management” and “Forest Service” sections in this report.)

Status of Bill

Table 2 below contains information on congressional consideration of the FY2007 Interior

appropriations bill (H.R. 5386) and the FY2007 Revised Continuing Appropriations Resolution

for FY2007 (P.L. 110-5).

Table 2. Status of Interior, Environment, and Related Agencies

Appropriations, FY2007

Subcommittee

Markup

House

Report

House

Passage

Senate

Report

Senate

Passage

Conf.

Report

6/27/06

H.R. 5386,

H.Rept.

109-465

5/15/06

H.R. 5386,

(293-128)

5/18/06

H.R. 5386,

S.Rept.

109-275

6/29/06

—

—

—

H.J.Res. 20

(286-140)

1/31/07

—

H.J.Res. 20

(81-15)

2/14/07

House

Senate

5/04/06

—

Conference

Report Approval

House

Senate

Public

Law

—

—

—

—

—

—

—

P.L.

110-5

2/15/07

Title I: Department of the Interior

Bureau of Land Management

Overview

The Bureau of Land Management (BLM) manages approximately 261 million acres of public

land for diverse and sometimes conflicting uses, such as energy and minerals development,

livestock grazing, recreation, and preservation. The agency also is responsible for about 700

million acres of federal subsurface mineral resources throughout the nation, and supervises the

mineral operations on an estimated 56 million acres of Indian Trust lands. Another key BLM

function is wildland fire management on about 370 million acres of DOI, other federal, and

certain nonfederal land.

For the BLM for FY2007, the House approved $1.79 billion and the Senate Appropriations

Committee reported $1.80 billion. The House bill would have been an increase of $31.2 million

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(2%) from the FY2006 enacted level of $1.75 billion, while the Senate committee bill would have

been an increase of $50.2 million (3%). See Table 3 below.

The Administration’s FY2007 budget suggested amending the Federal Land Transaction

Facilitation Act (FLTFA) to alter the distribution of proceeds from land sales. Under current law,

proceeds are deposited into a separate Treasury account and are available primarily for land

acquisition. The President’s proposal directed 70% of the proceeds to the general fund of the

Treasury to help reduce the deficit. Legislation would be needed to make this change. Neither the

House nor the Senate Appropriations Committee included such a proposal in its FY2007 bill.

Management of Lands and Resources

For Management of Lands and Resources, the House approved $867.7 million, a $20.1 million

(2%) increase over the FY2006 enacted level of $847.6 million. The Senate Appropriations

Committee reported $876.9 million, a $29.2 million (3%) increase over FY2006. This line item

includes funds for an array of BLM land programs, including protection, recreational use,

improvement, development, disposal, and general BLM administration.

The House and the Senate Appropriations Committee agreed with the Administration’s approach

to decrease funds for some programs from FY2006, including deferred maintenance and

management of soil, air, and water. The House and the Senate Appropriations Committee also

agreed with the Administration’s approach to increase funds for some programs over FY2006. For

instance, for cultural resources, the request and the Senate committee level were $18.1 million, up

$3.1 million (21%) from the FY2006 enacted level of $15.0 million, while the House approved

$16.6 million. The increase was for a long-term initiative to inventory, monitor, stabilize, and

protect cultural resources. For energy and minerals, the request was $134.7 million, an increase of

$24.3 million (22%) over FY2006 ($110.4 million, including Alaska minerals). The House

supported $133.0 million and the Senate Appropriations Committee reported $138.0 million. The

overall increase was intended to foster access to energy resources on federal lands. A portion was

to process the growing number of Applications for Permits to Drill, and for related inspection,

enforcement, and monitoring. Another portion was to accelerate implementation of an oil shale

development program. Further, the budget assumed that Congress would enact legislation in 2006

to open the Arctic National Wildlife Refuge (ANWR) to development. Thus, an increase was

sought for preparing and implementing an ANWR leasing program and for management of

energy development activities in the National Petroleum Reserve—Alaska.

In other cases, the House, Senate Appropriations Committee, and Administration took differing

approaches relative to FY2006 levels. For instance, the House approved $67.0 million for

recreation management, a 3% increase over FY2006, while the Administration proposed a 2% cut

and the Senate Appropriations Committee recommended nearly level funding. The House also

included $20.1 million for resource protection and law enforcement, a 6% increase over FY2006,

in part for law enforcement along the southwest border. By contrast, the Administration and the

Senate Appropriations Committee supported $18.6 million, a 2% cut from FY2006. For

conveyance of lands in Alaska, the Administration and House sought $35.2 million, a 12% cut,

but the Senate Appropriations Committee recommended level funding at $40.0 million.

Both the House-passed and Senate committee-reported bills continued to bar funds from being

used for energy leasing activities within the boundaries of national monuments, as they were on

January 20, 2001, except where allowed by the presidential proclamations that created the

monuments. The bills also continued the moratorium on accepting and processing applications for

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patents for mining and mill site claims on federal lands. However, applications meeting

certain requirements that were filed on or before September 30, 1994, would be allowed to

proceed, and third party contractors would be authorized to process the mineral examinations on

those applications.

The House agreed to an amendment to prohibit funds in the bill from being used for the sale or

slaughter of wild horses and burros (as defined in P.L. 92-195). Amendment proponents seek to

prevent BLM from selling, during FY2007, excess wild horses and burros under authority

enacted in P.L. 108-447. According to BLM, 41 animals that were sold under that authority were

subsequently resold or traded, and then sent to slaughterhouses by the new owners. Advocates of

the amendment assert that there are alternatives for controlling populations of wild horses on

federal lands, such as fertility control. Opponents of a similar amendment to the previous year’s

appropriations bill contended that BLM’s changes to the sale procedure would prevent animals

from being slaughtered. They maintained that sale authority was needed because adoptions and

other efforts to reduce herd sizes have been insufficient. Further, they asserted that significant

funds used for caring for animals in holding facilities could be redirected to other government

priorities. Although the House passed a similar amendment to the FY2006 Interior appropriations

bill, the provision was not enacted.

Wildland Fire Management

For Wildland Fire Management for FY2007, the House approved $769.3 million, a $14.0 million

increase (2%) over the $755.3 million enacted for FY2006 and nearly identical ($0.3 million less)

to the Administration’s request. The Senate Appropriations Committee recommended $776.6

million, a $21.4 million (3%) increase over FY2006 and $7.1 million (1%) over the

Administration’s request. The House, Senate Appropriations Committee, and Administration

levels were similar in many respects. They provided $274.8 million for fire preparedness, an

increase of $6.0 million (2%) over FY2006. They also provided $257.0 million for fire

suppression, an increase of $26.3 million (11%) from FY2006 to fund the 10-year average cost of

fire suppression. In report language, the House Appropriations Committee expressed continued

concern with the high costs of fire suppression, and directed DOI and the FS to examine fires

with suppression costs exceeding $10.0 million. The increases for preparedness and suppression

were partially offset by reductions in other areas. For instance, the Administration, House, and

Senate Appropriations Committee sought a decrease of $8.3 million (4%, to $199.8 million) for

hazardous fuels reduction. The Administration and House also sought to eliminate funds for state

and local fire assistance, on the grounds that assistance for local fire departments will be provided

through other programs. The Senate Appropriations Committee included $5.0 million for state

and local fire assistance, asserting that rural and volunteer fire departments are effective in

responding to fires and saving the federal government money, and that the Administration also

has proposed cuts in related programs. The FY2006 funding level for state and local fire

assistance was $9.9 million.

The wildland fire funds appropriated to BLM are used for fire fighting on all Interior Department

lands. Interior appropriations laws also provide funds for wildland fire management to the Forest

Service (Department of Agriculture) for fire programs primarily on its lands. A focus of both

departments is implementing the Healthy Forests Restoration Act of 2003 (P.L. 108-148) and the

National Fire Plan, which emphasize reducing hazardous fuels which can contribute to

catastrophic fires. In report language, the House Appropriations Committee expressed that the FS

and DOI “do not have a suitable or comprehensive plan and strategy to deal with the Nation’s

wildfire management needs,” and directed the development and implementation of a

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comprehensive and cohesive strategy (H.Rept. 109-465, p. 18). The committee also stated that it

is still not clear that hazardous fuels funding is being used for priority projects and asked that

DOI provide a report on how funding is to be prioritized and allocated. Report and bill language

sought to address other concerns. (For additional information on wildland fires, see the “Forest

Service” section in this report.)

Construction and Land Acquisition

For FY2007, the House approved $11.5 million for BLM construction, a decrease of 2% relative

to the FY2006 level. The Senate Appropriations Committee and the Administration supported

more substantial cuts—of 42% and 45%, respectively. For Land Acquisition for FY2007, the

Administration and Senate Appropriations Committee sought increases of 2% and 7%,

respectively, over the FY2006 level. The House approved a 64% decrease. In report language, the

House Appropriations Committee stated that new land acquisition is a low priority. The

appropriation for BLM acquisitions has fallen steadily from $49.9 million in FY2002 to $8.6

million for FY2006. Money for land acquisition is appropriated from the Land and Water

Conservation Fund. (For more information, see the “The Land and Water Conservation Fund

(LWCF)” section in this report.)

Table 3. Appropriations for the Bureau of Land Management, FY2006-FY2007

($ in millions)

Bureau of Land Management

FY2006

Approp.

FY2007

Request

FY2007

House

Passed

FY2007

Senate

Comm.

Management of Lands and Resources

$847.6

$863.2

$867.7

$876.9

Wildland Fire Management

755.3

769.6

769.3

776.6

—Preparedness

268.8

274.8

274.8

274.8

—Suppression

230.7

257.0

257.0

257.0

—Other Operations

255.7

237.7

237.4

244.8

Construction

11.8

6.5

11.5

6.8

Land Acquisition

8.6

8.8

3.1

9.2

Oregon and California Grant Lands

108.5

112.4

111.4

112.4

Range Improvements

10.0

10.0

10.0

10.0

Service Charges, Deposits, and Forfeituresa

0.0

0.0

0.0

0.0

Miscellaneous Trust Funds

12.4

12.4

12.4

12.4

$1,754.1

$1,782.9

$1,785.3

$1,804.4

Total Appropriations

a.

The figures of “0” are a result of an appropriation matched by offsetting fees.

For further information on the Department of the Interior, see its website at http://www.doi.gov.

For further information on the Bureau of Land Management, see its website at

http://www.blm.gov/nhp/index.htm.

CRS Report RL32315, Oil and Gas Exploration and Development on Public Lands, by (name

redacted).

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CRS Report RL33792, Federal Lands Managed by the Bureau of Land Management (BLM) and

the Forest Service (FS): Issues for the 110th Congress, by (name redacted) et al.

Fish and Wildlife Service

For FY2007, the President requested $1.29 billion for the Fish and Wildlife Service (FWS), 13%

less than FY2006 ($1.48 billion, including emergency appropriations). The House approved $1.9

million less than the request, and the Senate Appropriations Committee approved $32.4 million

more than the request. By far the largest portion of the FWS annual appropriation is for the

Resources Management account. The President’s FY2007 request was $995.6 million, a 1%

decrease from the FY2006 level of $1.00 billion. The House approved $1.017 billion, while

the Senate Appropriations Committee approved $1.024 billion. Among the programs included

in Resources Management are the Endangered Species program, the Refuge System, and

Law Enforcement.

In addition, the President’s FY2007 budget proposed enacting legislation to open part of the

Coastal Plain in the Arctic National Wildlife Refuge (ANWR) to oil and gas exploration and

development.3 The budget proposed that the first lease sale would be held in FY2008. Under the

proposal, this and subsequent sales were estimated to generate $4.0 billion in federal revenues

over the next five years. For information on the debate over whether to approve energy

development in the Refuge, see CRS Report RL33872, Arctic National Wildlife Refuge (ANWR):

New Directions in the 110th Congress, by (name redacted), (name redacted), and (name red

acted).

Endangered Species Funding

Funding for the Endangered Species program is one of the perennially controversial portions of

the FWS budget. The Administration proposed to reduce the program from $147.8 million in

FY2006 to $141.0 million in FY2007 (5%), with the bulk of the reduction in the recovery

subprogram. For FY2007, the House approved $146.6 million, $1.2 million below FY2006 and

$5.6 million above the request, while the Senate Appropriations Committee approved $152.0

million. See Table 4, below.

A number of other related programs also benefit conservation of species that are listed, or

proposed for listing, under the Endangered Species Act. The President’s request would have

increased the Landowner Incentive Program from $21.7 million in FY2006 (including a $2.0

million rescission) to $24.4 million in FY2007. Stewardship Grants would rise from $7.3 million

in FY2006 to $9.4 million. The Cooperative Endangered Species Conservation Fund (for grants

to states and territories to conserve threatened and endangered species) would remain at $80.0

million. Within that figure, the Administration proposed to earmark $5.1 million in FY2007 for

the Idaho Salmon and Clearwater River Basins Habitat Account. The House approved cuts in the

Landowner Incentive Program and Private Stewardship Grants, but a modest increase in the

Cooperative Endangered Species Conservation Fund. The Senate Appropriations Committee

approved cuts in the Landowner Incentive Program, but otherwise supported the requests. See

Table 4, below.

3

The proposed authorization for exploration and development would be separate legislation, rather than part of the

Interior appropriations bill. The proposal does not appear in the FWS Budget Justification for FY2007.

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Under the President’s request, total FY2007 funding for the Endangered Species program and

related programs would have decreased from $256.8 million to $254.8 million (1%). The House

approved a 3% decrease, as did the Senate Appropriations Committee.

Table 4. Appropriations for Endangered Species and Related Programs,

FY2005-FY2007

($ in thousands)

FY2005

Approp.

FY2006

Approp.

FY2007

Request

FY2007

House

Passed

FY2007

Senate

Comm.

—Candidate Conservation

$9,255

$8,619

$8,063

$8,163

$10,045

—Listing

15,960

17,630

17,759

17,759

17,859

—Consultation

48,129

47,997

49,337

50,018

50,018

—Recovery

69,870

73,562

65,879

70,670

74,028

Subtotal, Endangered Species Program

143,214

147,808

141,038

146,610

151,950

—Landowner Incentive Program

21,694

21,667

24,400

15,000

10,000

—Private Stewardship Grants

6,903

7,277

9,400

7,000

7,277

80,001

Endangered Species and

Related Programs

Endangered Species Program

Related Programs

80,462

80,001

80,001

80,507a

—Cooperative Endangered Species Conservation Fund

Subtotal, Related Programs

109,059

108,945b

113,801

102,507

97,278

Total Appropriations

$252,273

$256,753b

$254,839

$249,117

$249,228

a.

The President’s request for FY2007 called for the entire amount to be derived from LWCF. The House

approved $60.3 million from LWCF, an amount the report of the House Committee on Appropriations

identifies as equal to species recovery, land acquisition, and acquisition for Habitat Conservation Plans.

b.

Reflects a $2.0 million rescission in the Landowner Incentive Program and a $1.0 million rescission in the

Cooperative Endangered Species Conservation Fund in P.L. 109-148.

National Wildlife Refuge System and Law Enforcement

For refuge operations and maintenance in FY2007, the President proposed $381.7 million, a

decrease from $382.5 million in FY2006. The House approved $388.7 million, while the Senate

Appropriations Committee approved $391.2 million. The President proposed $57.3 million for

Law Enforcement—an increase of $1.2 million from the FY2006 level ($56.1 million). The

House-passed bill contained $57.5 million, while the Senate Appropriations Committee approved

$57.9 million.

Avian Flu

For FY2007, the Administration proposed to continue the special supplemental funding Congress

provided in FY2006 for the study, monitoring, and early detection of highly pathogenic avian flu,

through a virus strain known as H5N1. The FY2006 level was $7.4 million. The same was

proposed by the Administration for FY2007, and this amount was passed by the full House and

approved by the Senate Appropriations Committee. FWS will cooperate with other federal and

non-federal agencies in studying the spread of the virus through wild birds. Attention will be

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focused on the North American species whose migratory patterns make them likely to come into

contact with infected Asian birds. The geographic focus will be on Alaska, the Pacific Flyway

(along the west coast), and Pacific islands. The House Appropriations Committee report also

directed that the funds be used not only for monitoring and testing in Alaska, but also for “vector

control efforts in other areas,” but did not elaborate on the efforts intended nor the geographic

areas to be given additional emphasis. The Senate Appropriations Committee report did not

discuss the program.

Land Acquisition

For FY2007, the Administration proposed $27.1 million for Land Acquisition, 3% below

FY2006. The House approved $19.8 million, a decrease of 29%. (See Table 5.) The House

Appropriations Committee report earmarked acquisition funding for six refuges in the northeast.

The Senate Appropriations Committee approved $42.3 million, with a more scattered list of

acquisitions. This program is funded from appropriations from LWCF. In the past, the bulk of this

FWS program had been for specified acquisitions of federal refuge land, but a portion was used

for closely related functions such as acquisition management, land exchanges, emergency

acquisitions, purchase of inholdings, and general overhead (“Cost Allocation Methodology”). In

recent years, less of the funding has been reserved for traditional land acquisition. The

Administration continued this trend for FY2007, reserving $13.7 million for specified

acquisitions, and funding the remainder of the program at $13.4 million. 4 The House-passed bill

would allocate a smaller fraction to acquisition than the President’s proposal. While the Senate

Appropriations Committee supported an increase to $42.3 million, it took the unusual step of

earmarking some $500,000 of the $28.2 million in Acquisition funds for an EIS for an Alaskan

land exchange, rather than deriving the expenses from Exchanges or Acquisition Management.

(See Table 5, below.) (For more information, see “The Land and Water Conservation Fund

(LWCF)” in this report.)

Table 5. Appropriations for FWS Land Acquisition Program, FY2005-FY2007

($ in thousands)

FWS Land Acquisition

FY2005

Approp.

FY2006

Approp.

FY2007

Request

FY2007

House

Passed

FY2007

Senate

Comm.

Acquisitions—Federal Refuge Lands

$22,593

$13,494

$13,672

$8,800

$28,242

1,479

1,478

1,478

478

1,500

986

1,478

1,478

1,500

1,500

Exchanges

1,726

1,478

1,478

0

1,500

Acquisition Management

8,249

8,269

7,171

7,171

7,720

Cost Allocation Methodology

1,972

1,793

1,802

1,802

1,802

$37,005

$27,990

$27,079

$19,751

$42,264

Inholdings

Emergencies & Hardships

Total Appropriations

4

Under the Migratory Bird Conservation Account (MBCA), FWS has a permanently appropriated source of funding

(from the sale of “duck stamps” to hunters, and import duties on certain arms and ammunition) for land acquisition. As

annual appropriations for acquisitions under LWCF have declined, the MBCA ($41.9 million in FY2006) has become

increasingly important in the protection of habitat for migratory birds, especially waterfowl. Other species in these

habitats benefit incidentally.

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Wildlife Refuge Fund

The National Wildlife Refuge Fund (also called the Refuge Revenue Sharing Fund) compensates

counties for the presence of the non-taxable federal lands of the National Wildlife Refuge System

(NWRS). A portion of the fund is supported by the permanent appropriation of receipts from

various activities carried out on the NWRS. However, these receipts are not sufficient for full

funding of amounts authorized in the formula, and county governments have long urged

additional appropriations to make up the difference. Congress generally does provide additional

appropriations. The President requested $10.8 million for FY2007, down from $14.2 million in

FY2006. This FY2007 level, combined with expected receipts, would provide about 30% of the

authorized full payment, down from 40% in FY2006. The House-passed figure was $14.2

million, as in FY2006, which the Senate Appropriations Committee also approved.

Multinational Species Conservation Fund (MSCF)

The MSCF has generated considerable constituent interest despite the small size of the program.

It benefits Asian and African elephants, tigers, rhinoceroses, great apes, and marine turtles. The

President’s FY2007 budget again proposed to move funding for the Neotropical Migratory Bird

Conservation Fund (NMBCF) into the MSCF. Congress has rejected the proposed transfer

annually from FY2002 to FY2006, and the House and the Senate Appropriations Committee

again rejected the proposal for FY2007. For FY2007, the President proposed $8.2 million for the

MSCF (including the proposed transfer of the NMBCF to this program). The proposal would cut

programs for great apes, rhinos, tigers, African and Asian elephants, and marine turtles, but would

increase funding for neotropical migratory birds. The House passed smaller reductions, while the

Senate Appropriations Committee added funds over FY2006 levels. See Table 6, below.

Table 6. Appropriations for Multinational Species Conservation Fund and

Neotropical Migratory Bird Fund, FY2005-FY2007

($ in thousands)

Multinational Species Conservation Fund

FY2005

Approp.

FY2006

Approp.

FY2007

Request

FY2007

House

Passed

FY2007

Senate

Comm.

African Elephant

$1,381

$1,379

$990

$1,290

$1,400

Tiger and Rhinos

1,477

1,576

990

1,490

1,600

Asian Elephant

1,381

1,379

990

1,290

1,400

Great Apes

1,381

1,379

990

1,290

1,400

Marine Turtles

99

691

297

697

1,000

[Neotropical Migratory Birds]

[3,944]

[3,941]

[3,960]

[4,000]

[4,000]

Total Appropriations

$5,719

$6,404

$4,257

$6,057

$6,800

Note: The Neotropical Migratory Bird program was first authorized in FY2002, and is not part of the MSCF,

although the transfer has been proposed in the President’s budgets from FY2002-FY2007. Congress has rejected

the proposal five times, and the program is not included in the column totals.

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State and Tribal Wildlife Grants

State and Tribal Wildlife Grants help fund efforts to conserve species (including non-game

species) of concern to states, territories, and tribes and has generated considerable support from

these governments. The program was created in the FY2001 Interior appropriations law (P.L.

106-291) and further detailed in subsequent Interior appropriations bills. (It lacks any separate

authorizing statute.) Funds may be used to develop conservation plans as well as to support

specific practical conservation projects. A portion of the funding is set aside for competitive

grants to tribal governments or tribal wildlife agencies. The remaining state portion is for

matching grants to states. A state’s allocation is determined by formula. The President proposed

$74.7 million, an increase from $67.5 million in FY2006. The House approved a decrease to

$50.0 million. The Senate Appropriations Committee approved the FY2006 funding level, and set

aside $5.9 million for tribal grants. Like the House, it did not specify what fraction of the state

share was to be used for administrative expenses. Both the House and the Senate Appropriations

Committee rejected the President’s proposal to set aside $5 million for competitive grants to the

same jurisdictions. See Table 7, below.

Table 7. Appropriations for State and Tribal Wildlife Grants, FY2005-FY2007

($ in thousands)

State and Tribal Wildlife Grants

FY2005

Approp.

FY2006

Approp.

FY2007

Request

FY2007

House

Passed

FY2007

Senate

Comm.

State Grants

$61,040

$59,556

$61,486

$45,000

$61,580

0

0

5,000

0

0

Tribal Grants

5,917

5,912

5,940

5,000

5,912

Administrationa

1,947

2,024

2,240

n/a

n/a

124

—

—

—

—

$69,028

$67,492

$74,666

$50,000

$67,492

Competitive Grants for States, Territories, &

Other Jurisdictions

Cost Allocation Methodology (CAM)b

Total Appropriations

Note: n/a = not available.

a.

In FY2006 and earlier, administrative costs were limited to 3%, after tribal grants are deducted from the

total. Committee reports and the conference report did not specify a dollar figure for allocation to

administration or to the cost allocation methodology. For FY2007, neither the Senate Appropriations

Committee nor the House specified a dollar or a percent limit on administrative costs, but only that such

costs be deducted from the state grants share of the program.

b.

Beginning in FY2006, CAM was included under administrative costs.

For further information on the Fish and Wildlife Service, see its website at http://www.fws.gov/.

CRS Report RL33468, The Endangered Species Act (ESA) in the 109th Congress: Conflicting

Values and Difficult Choices, by (name redacted) et al.

CRS Report RS21157, Multinational Species Conservation Fund, by (name redacted) and (na

me redacted).

CRS Report RL33872, Arctic National Wildlife Refuge (ANWR): New Directions in the 110th

Congress, by (name redacted), (name redacted), and (name redacted).

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National Park Service

The National Park Service (NPS) is responsible for the National Park System, currently

comprising 390 separate and very diverse park units covering 85 million acres. The NPS and its

20,400 employees protect, preserve, interpret, and administer the park system’s diverse natural

and historic areas representing the cultural identity of the American people. The NPS mission is

to protect park resources and values, unimpaired, while making them accessible to the public. The

Park System has some 20 types of area designations, including national parks, monuments,

memorials, historic sites, battlefields, seashores, recreational areas, and other classifications. The

NPS also supports and promotes some resource conservation activities outside the Park System

through limited grant and technical assistance programs and cooperation with partners.

The Senate Appropriations Committee bill provided a total of $2.23 billion for the NPS, $52.4

million (2%) more than the House-passed bill and $72.4 million (3%) above the budget request,

but $209.5 million (9%) below the FY2006 enacted level. See Table 8, below. The NPS budget

request is in accordance with the Administration’s goal of cutting the federal budget deficit, but

may be at odds with the agency’s public popularity. It included increases for park operations and

park police, with other line items either nearly level or significantly reduced. It has been reported

that inflation; fixed costs, such as mandatory pay and benefit increases; and rising fuel and utility

costs are forcing park managers to reduce visitor programs and services and to raise entry fees as

the summer season begins.5

Two amendments adopted by the House involved the NPS. The first increased funding for the

Operation of the National Park System by $1.0 million, with the intent of increasing security to

open all of the Statue of Liberty to visitors. The other excluded certain cities from an ongoing

NPS study of the San Gabriel watershed. In addition, House Appropriations Committee Members

agreed to help resolve a matter concerning repeated extensions of the concessions contract to

provide ferry service to the Statue of Liberty/Ellis Island National Monument.

The Senate Appropriations Committee bill would direct the NPS to keep in effect a rule

authorizing the use of snowmobiles in Yellowstone and Grand Teton National Parks and the John

D. Rockefeller Memorial Parkway (that joins these parks) for three more years or until the NPS

completes new rules, and would reinstate the current rule if a court enjoins or limits the

implementation of the replacement new rules. The FY2005 and FY2006 Interior appropriations

acts kept the current NPS rule in effect for one year, and the House-passed bill for FY2007 would

extend that protection for one additional year.

Operation of the National Park System

The park operations line-item is the primary source of funding for the national parks, accounting

for 80% of the total NPS budget. It supports the activities, programs, and services essential to the

day-to-day operations of the Park System, and covers resource protection, visitors’ services,

facility operations, facility maintenance, and park support programs, as well as employee pay,

benefits, and other fixed costs. The majority of operations funding is provided directly to park

managers. In its report on the FY2007 bill, the House Appropriations Committee was critical of a

Department “hold harmless” policy for law enforcement rangers “... while forcing all other visitor

5

“National Parks Cutting Back on Services, Raising Fees,” USA Today (May 12, 2006): A1.

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service, maintenance, and resources protection functions to deal with the absorption of fixed costs

and other budgetary limitations” (H.Rept. 109-465, p. 44). The House retained the committee’s

bill language to counter this policy.

The Senate Appropriations Committee recommended $1.75 billion for operation of the Park

System for FY2007, an increase of $9.7 million (1%) above the request, but a decrease of $4.3

million (less than 1%) from the House allowance and of $20.6 million (1%) from FY2006. The

committee’s report lists high-priority facility maintenance, repair, and rehabilitation projects. It

has been reported that an ongoing NPS “core operations analysis” program aims to reduce parks’

fixed costs by 20%-30% and promote budget efficiency without compromising core mission

functions of resource protection and visitor hospitality. To date, 53 park units have completed the

studies and 34 more are scheduled to finish by the end of FY2006. The NPS intends to complete

all unit studies by the end of 2011.6 Park advocacy groups have estimated that, in recent years, the

national parks operate with two-thirds of needed funding, on average, and have asked Congress to

provide an additional $150 million for park operations in FY2007, as well as additional funding

for park security, land acquisition, and hurricane damage repairs. The condition of the national

parks and the adequacy of their care and operation continue to be controversial.

Table 8. Appropriations for the National Park Service, FY2005-FY2007

($ in millions)

National Park Service

FY2005

Approp.

FY2006

Approp.

FY2007

Request

FY2007

House

Passed

FY2007

Senate

Comm.

Operation of the National Park System

$1,683.6

$1,771.6

$1,742.3

$1,755.3

$1,751.0

U.S. Park Police

80.1

80.2

84.8

84.8

84.8

National Recreation and Preservation

61.0

65.5

33.3

47.2

53.5

Historic Preservation Fund

71.7

115.2

71.9

58.7

70.7

Constructiona

353.0

388.3

229.3

229.9

234.9

Land and Water Conservation Fundb

-30.0

-30.0

-30.0

-30.0

-30.0

—Assistance to States

91.2

29.6

1.6

1.6

30.0

—NPS Acquisition

55.1

34.4c

22.7

28.4

33.4

Subtotal, Land Acquisition and

State Assistance

146.3

47.0d

24.3

30.0

63.4

$2,365.7

$2,437.7

$2,155.8

$2,175.8

$2,228.2

Land Acquisition and State Assistance

Total Appropriations

6

a.

Includes $50.8 million of emergency funding for FY2005 enacted in P.L. 108-324, and $19.0 million of

emergency funding for FY2006 enacted in P.L. 109-148.

b.

Figures reflect a rescission of contract authority.

c.

The funding figure is reduced by the use of $9.8 million from prior year balances.

d.

The funding figure is reduced by the use of $17.0 million from prior year balances, which are not allocated

between Assistance to States and NPS Acquisition.

“National Parks: Directions to Increase Efficiency, Cut Costs Gets Mixed Reviews,” Land Letter (May 4, 2006.)

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United States Park Police (USPP)

This budget item supports the U.S. Park Police, an urban-oriented, full-service, uniformed law

enforcement entity of the NPS with primary jurisdiction at park sites within the metropolitan

areas of Washington, DC, New York City, and San Francisco. USPP law enforcement authority

extends to all NPS units and to certain other federal and state lands. The park police provide

specialized law enforcement services to other park units when requested, through deployment of

professional police officers to support law enforcement trained and commissioned park rangers

working in park units system-wide. The enacted level for FY2006 was $80.2 million; the FY2007

request, the House-passed bill, and the Senate Appropriations Committee all would allow $84.8

million, a 6% increase. Increased funding is proposed for heightened security at icon parks and

for recruitment and training of new officers. An internal review concluded in December 2004

reportedly addressed long-standing fiscal and management problems and redefined USPP

priorities to be: (1) protection of “iconic” (symbols of democracy) park units and their visitors,

(2) patrol of the National Mall and adjacent parks, (3) special events and crowd management, (4)

criminal investigations, and (5) traffic control and parkway patrol.

National Recreation and Preservation

This line item has funded a variety of park recreation and resource protection programs and an

international park affairs office, as well as programs connected with state and local community

efforts to preserve natural, cultural, and historic (heritage) resources. The Senate Appropriations

Committee recommended $53.5 million for the line item, $6.3 million (13%) more than the

House allowance, $20.2 million (61%) above the request of $33.3 million, but $12.0 million

(18%) below the FY2006 enacted level of $65.5 million. The large requested decrease was partly

from the proposal to eliminate the statutory and contractual aid program for specific sites, as had

been proposed—and rejected by Congress—in FY2005 and FY2006. The House agreed with the

request not to fund statutory and contractual aid. The Senate Appropriations Committee, however,

recommended $5.3 million, and in report language proposed a specific distribution for the funds.

The House and the Senate Appropriations Committee both rejected the request to reduce funding

for the heritage partnership program and to transfer the program to the Historic Preservation

Fund. The Administration had proposed the transfer of heritage partnership programs (for

heritage areas) to the Historic Preservation Fund (see below) and a decrease in FY2007 funding

for heritage areas to $7.4 million, down $5.9 million (44%) from FY2006. The Senate

Appropriations Committee recommended $14.1 million, $0.2 million (2%) above the House

allowance and $0.8 million (6%) above FY2006 for the heritage partnership program.

In agreement with the House committee report, the House declined to provide funds for the

Chesapeake Bay Gateways and Water Trail initiative, a program that had received a total of $11.0

million since FY2000. The Senate Appropriations Committee, however, recommended $1.6

million for the program, and noted (in report language) a DOI Inspector General’s report that

commended NPS efforts to improve program grant management, while urging the NPS to

implement additional recommendations of the Inspector General’s report.

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Construction

The construction line item funds new construction, as well as improvements, repair,

rehabilitation, and replacement of park facilities, including many historic structures. The Senate

Appropriations Committee recommended $234.9 million for NPS construction, $4.9 million (2%)

more than the House, $5.6 million (2%) more than the request, and $153.4 million (40%) less

than FY2006 enacted. The committee’s report contained a specific line-item distribution of

construction funds that included funding for the Harpers Ferry Center, which had not been

proposed by the NPS.

Cuts in the construction line item could limit the reduction of the NPS multi-billion dollar

maintenance backlog. Rather than fund the reduction of the backlog in FY2007, it has been

reported that the Administration is proposing to hold the line against any further backlog

accumulation by sustaining the same level of “facility condition index.”7 (For information on

NPS maintenance, see CRS Report RL33484, National Park Management, coordinated by (name

redacted).

Land Acquisition and State Assistance

FY2006 appropriations for the NPS under the Land and Water Conservation Fund (LWCF) were

$47.0 million, comprised of $34.4 million for NPS land acquisition, $29.6 million for state

assistance programs, and a $17.0 million reduction due to the use of prior year funds.8 Land

acquisition funds are used to acquire lands, or interests in lands, for inclusion within the National

Park System. State assistance is for recreation-related land acquisition and recreation planning

and development by the states, with the funds allocated by a formula and states determining their

spending priorities.

The Senate Appropriations Committee recommended $63.4 million for NPS land acquisition and

state assistance. This is $33.4 million (111%) above the House allowance, $39.1 million (160%)

above the request, and $16.4 million (35%) above FY2006. For the federal side of LWCF, the

Senate Appropriations Committee recommended $33.4 million, compared to the $28.4 million

House allowance and $22.7 million request. The House-passed bill allowed a total of $30.0

million for NPS land acquisition and state assistance. Within the $30.0 million, the report of the

House Appropriations Committee specified $5.0 million for the United Airlines Flight 93

memorial near Shanksville, PA, and the Senate Appropriations Committee agreed with that

amount. The request for state assistance funds was limited to $1.6 million for administrative

expenses, with no funds for state grants ($28.0 million in FY2006); the House agreed with this

request. The Senate Appropriations Committee, however, recommended $28.4 million for state

assistance grants and $1.6 million for administrative expenses. (For more information, see the

“The Land and Water Conservation Fund (LWCF)” section in this report.) S. 3562 would provide

$450 million annually for LWCF state assistance from offshore oil and gas development leases in

the Gulf of Mexico, near Florida.

7

Leslie Ann Duncan, “Senate Energy Panel Hears from Mainella on Parks Budget,” Congressional Quarterly Green

Sheets, March 12, 2006.

8

Prior year balances of $9.8 million for land acquisition and of $17.0 million for both programs (with no specified

allocation between NPS land acquisition and state assistance) offset additional LWCF appropriations for FY2006.

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Historic Preservation

The Historic Preservation Fund (HPF), administered by the NPS, provides grants-in-aid for

activities specified in the National Historic Preservation Act (NHPA; 16 U.S.C. §470), such as

restoring historic districts, sites, buildings, and objects significant in American history and

culture. Preservation grants are normally funded on a 60% federal/40% state matching share

basis. The HPF includes funding for Save America’s Treasures and Preserve America grants.

For FY2007, the Senate Appropriations Committee approved $70.7 million for the HPF, $44.5

million below the FY2006 appropriation ($115.2 million) and $1.2 million below the

Administration’s FY2007 budget of $71.9 million. The FY2006 figure includes a $43.0 million

emergency appropriation to help historic sites recover from hurricane Katrina. See Table 9,

below. Both the House-passed and Senate Appropriations Committee-reported measure would

include $35.7 million for grants-in-aid to state historic preservation offices, $3.9 million for

Tribal grants, and $1.0 million for preserving and restoring historic buildings and structures on

campuses of Historically Black Colleges and Universities (HBCUs). The FY2006 appropriation

for HBCUs was $3.0 million.

The House and the Senate Appropriations Committee disagreed with the Administration’s

FY2007 request to create the America’s Heritage and Preservation Partnership program within the

Historic Preservation Fund and to reduce National Heritage areas by 50%. The Administration

sought to combine funding for National Heritage Areas ($7.4 million), Save America’s Treasures

($14.8 million), and Preserve America grants ($10.0 million). The NPS supports National

Heritage Areas, which are managed by private or state organizations, with financial and technical

assistance. Both the House and the Senate Appropriations Committee would retain the Heritage

Partnership program within the National Recreation and Preservation programs line item.

The Senate Appropriations Committee-reported bill would provide $30.0 million for Save

America’s Treasures, whereas the House-passed bill would provide $15.0 million. Save America’s

Treasures preserves nationally significant intellectual and cultural artifacts and historic structures.

Annual appropriations laws have required that project recommendations be subject to approval by

the Appropriations Committees. Preserve America grants-in-aid were created to supplement Save

America’s Treasures in supporting community efforts to develop resource management strategies

and to encourage heritage tourism. They are competitively awarded on a matching basis, as onetime seed money grants. The FY2006 appropriation provided that not to exceed $5.0 million

could be allocated to Preserve America grants. The FY2007 House-passed bill would provide

$3.0 million for Preserve America. The Senate Appropriations Committee-reported bill would

provide that of the $30.0 million for Save America’s Treasures, $10.0 million may be used for

Preserve America grants.

One issue that is often considered during the appropriations process is whether historic

preservation should be funded by private money rather than the federal government. Also,

pending legislation (H.R. 3446 and S. 1378) would reauthorize the Historic Preservation Fund

through FY2011 and FY2015 respectively and make changes to the Advisory Council on Historic

Preservation, an independent federal agency that promotes historic preservation and oversees

NHPA §106 historic preservation review.

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Table 9. Appropriations for the Historic Preservation Fund, FY2005-FY2007

($ in thousands)

Historic Preservation

FY2005

Approp.

FY2006

Approp.

FY2007

Request

FY2007

House

Passed

FY2007

Senate

Comm.

Grants-in-Aid to States and Territoriesa

$35,500

$35,717

$35,717

$35,717

$35,717

Tribal Grants

3,205

3,941

3,941

3,941

3,941

HBCUs

3,451

2,956

—

1,000

1,000

—b

Heritage Partnership Programsb

[14,579]

[13,301]

7,400

—b

Save America’s Treasures

29,583

29,558d

14,800

15,000

30,000

HPF Emergency Appropriationc

—

43,000

—

—

—

Preserve America Grants-In-Aid

0

d

10,000

3,000

e

$71,739

$115,172

$71,858

$58,658

$70,658

Total Appropriations

a.

The term “Grants-in-Aid to States and Territories” is used in conjunction with the budget and refers to the

same program as Grants-in-Aid to State Historic Preservation Offices.

b.

Funding for heritage areas in FY2005 and FY2006 was included in the National Recreation and Preservation

line item. The House-passed and Senate Committee-reported bills would retain the Heritage Partnership

program in the National Recreation and Preservation line item.

c.

The emergency supplemental for Iraq and Katrina (P.L. 109-234) provided $43.0 million to the HPF to help

historic sites recover from Katrina.

d.

The FY2006 appropriation allowed not to exceed $5.0 million to be used for Preserve America grants

within funding for Save America’s Treasures.

e.

H.R. 5386, as reported by the Senate Appropriations Committee, specifies that of the $30.0 million for Save

America’s Treasures, $10.0 million may be used for Preserve America grants.

For further information on the National Park Service, see its website at http://www.nps.gov/.

For further information on Historic Preservation, see its website at http://www.cr.nps.gov/hps/.

CRS Report RL33617, Historic Preservation: Background and Funding, by (name redacted).

CRS Report RL33484, National Park Management, coordinated by (name redacted).

U.S. Geological Survey

The U.S. Geological Survey (USGS) is the nation’s premier science agency in providing physical

and biological information related to natural hazards; certain aspects of the environment; and

energy, mineral, water, and biological sciences. In addition, it is the federal government’s

principal civilian mapping agency and a primary source of data on the quality of the nation’s

water resources. For FY2007, the Administration is emphasizing the role USGS plays in

providing timely scientific information for monitoring natural hazards and assessing their

impacts, measuring land cover changes, and assessing mineral resources.

Funds for the USGS are provided in the line item Surveys, Investigations, and Research, for

seven activities: the National Mapping Program; Geologic Hazards, Resources, and Processes;

Water Resources Investigations; Biological Research; Enterprise Information; Science Support;

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and Facilities. For FY2007, the Administration requested $944.8 million for the USGS, which is

$36.1 million (4%) below the FY2006 level of $980.8 (including emergency appropriations). The

House-passed bill contains $986.4 million, which is $41.7 million above the request and $5.6

million above the FY2006 enacted level. See Table 10, below. The Senate Appropriations

Committee-reported bill for FY2007 contains $980.0 million, which is $0.8 million below the

FY2006 enacted level, $35.2 million above the Administration’s request, and $6.5 million below

the House-passed bill.

Of the proposed changes in the Administration’s request, the largest would be the transfer of

funds ($68.9 million in FY2006) from the Cooperative Topographic Mapping Program to the

Enterprise Information Program. This transfer is consistent with changes in the direction of the

National Mapping Program, which the Administration proposed to change to the Geographic

Research, Investigations, and Remote Sensing Program. The Geographic Research,

Investigations, and Remote Sensing Program, under these changes, would emphasize

fundamental geographic research and consolidate elements of national geospatial programs. This

transfer also is reflected in the House-passed bill and the Senate Appropriations Committeereported bill. The FY2007 Administration request proposed to eliminate funding for the Water

Resources Research Institutes, which the Administration contends have been generally selfsupporting. The House-passed and the Senate committee-reported bills would retain $6.4 million

for this program. The House-passed and the Senate committee-reported bills also would retain

$22.9 million for mineral resource assessments, which were cut in the FY2007 request.

The Senate Appropriations Committee-reported bill did not provide funds for the multi-hazards

initiative within the USGS because the USGS did not specify where funds that would be

reprogrammed would come from. The Senate committee states that any reprogramming actions

should be submitted to the committee in advance in the “form of a reprogramming.”

Enterprise Information

This program consolidates funding of all USGS information needs including information

technology, security, services, and resources management, as well as capital asset planning. There

are three primary programs within Enterprise Information: (1) Enterprise Information Security

and Technology, which supports management and operations of USGS telecommunications (e.g.,

computing infrastructure and email); (2) Enterprise Information Resources, which provides policy

support, information management, and oversight over information services; and (3) Federal

Geographic Data Coordination, which provides operational support and management for the

Federal Geographic Data Committee (FGDC). The FGDC is an interagency, intergovernmental

committee that encourages collaboration to make geospatial data available to state, local, and

tribal governments, as well as communities. The FY2007 Administration’s request provided

$111.2 million for this program, $64.8 million above the FY2006 enacted level of $46.4 million.

The House-passed bill would provide $113.7 million for this program, and the Senate

Appropriations Committee-reported bill would provide $106.0 million. The increase in funds is

due to a proposed reorganization of the USGS budget. (See “Introduction,” above.) The Senate

Appropriations Committee did not provide an additional $4.6 million for the Federal Geographic

Data Committee because no rationale for the increase in funds was given.

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National Mapping Program

The National Mapping Program aims to provide public access to high quality geospatial

information. The Administration requested $76.6 million for this program, $52.7 million below

the FY2006 enacted level of $129.3 million. Further, the Administration requested that the

program name be changed to the Geographic Research, Investigations, and Remote Sensing

Program. The House-passed bill would change the program name to the Geographic Research,

Investigations, and Remote Sensing Program and provide $78.6 million, $2.0 million above the

request and $50.7 million less than the FY2006 enacted level. The Senate Appropriations

Committee-reported bill also would change the program name and recommends $78.6 million for

the program.

The primary reduction in requested funds for this program is due to budget restructuring, as noted

above. Further, the AmericaView program would not be funded (a reduction of $3.0 million). The

AmericaView program is a state level network that provides access and imagery archives for

university participants and other government participants. The bill passed by the House would

provide $2.0 million to the AmericaView program. The bill also would provide $13.0 million for

the Mid-Continent Mapping Center (MCMC) in Rolla, Missouri, and prohibit the use of funds to

consolidate the functions and operations of the MCMC into the National Geospatial Technical

Operations Center. The Senate Appropriations Committee bill states that funds will be precluded

for competitively sourcing functions of the National Geospatial Technical Operations Center

unless the staff at the Mid-Continent Mapping Center in Rolla, Missouri, is allowed the

opportunity to participate in a “fair and open competition” with other sites as a Federal Most

Efficient Organization.

Under the Land Remote Sensing subheading, an increase of $16.0 million is requested by the

Administration to support the Landsat Data Continuity Mission, also known as Landsat 8.

Landsat 8 is an upcoming satellite that will take remotely-sensed images of the Earth’s land

surface and surrounding coastal areas primarily for environmental monitoring. The volume of

data taken by Landsat 8 is to be four times greater than its predecessor, Landsat 7, and Landsat 8

is to include additional spectral bands and higher resolution than Landsat 7 data. The requested

funds would be used to establish ground systems to provide for the transfer, storage, and

accessibility of data from Landsat 8, when it is launched. The House-passed bill and the Senate

Appropriations Committee-reported bill would fund this program along the lines of the request.

The Senate Appropriations Committee’s report states that a proposed reduction in force (RIF)

for this program has not been adequately justified by the USGS, and no plan for resources

required to conduct a RIF was presented to the committee. The Senate Appropriations Committee

reinstates funding for the proposed reduction and expects research and staff levels to remain at

the current level.

Geologic Hazards, Resources, and Processes

For Geologic Hazards, Resources, and Processes activities, the Administration requested $217.4

million, which is $17.9 million below the FY2006 enacted level of $235.3 million. This line item

covers programs in three activities: Hazard Assessments, Landscape and Coastal Assessments,

and Resource Assessments. The House-passed bill would provide $241.9 million, and the Senate

Appropriations Committee-reported bill would provide $239.3 million.

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The primary reduction in the Administration’s request under this heading is a $22.9 million

reduction in the Mineral Resources Program. According to the Administration, proposed cuts in

the mineral resources program will focus efforts on mineral resource assessments and research

that benefit federal land management programs, as opposed to both federal and non-federal needs

as in previous years. The Administration expects that universities or other entities will undertake

assessments and research that support non-federal needs. The reduction will result in the

discontinuation of most research and data collection projects, including those on industrial

mineral research, and the elimination of some geophysical labs. In previous years, the

Administration has requested similar cuts in this program, yet funding has been included

by Congress.

The FY2007 House-passed bill and the Senate Appropriations Committee-reported bill would

retain funding for this program, including $18.4 million for research and assessments of mineral

deposits, and $4.5 million for minerals information. The House Appropriations Committee stated

that it “strongly disagrees” with the proposed reduction in the program and urged the

Administration not to propose program elimination again. The House committee disagreed with

the notion that objective data can be prepared in the private sector. The Senate Appropriations

Committee states that the reduction has “no merit.”

Water Resources Investigations

The Administration’s request for Water Resources Investigations was $204.0 million, $7.7 million

below the FY2006 enacted level of $211.8 million. The Hydrologic Monitoring, Assessments, and

Research sub-activity would receive $141.9 million; the Federal-State Cooperation Water

Program would receive $62.2 million; and the Water Resource Research Institutes would not be

funded. The House-passed bill included $213.8 million for this heading, and the Senate

Appropriations Committee-reported bill contains $216.8 million.

As with the Bush Administration’s FY2002-FY2006 budget requests, the FY2007 request would

discontinue USGS support for Water Resources Research Institutes because, according to the

Administration, most institutes have succeeded in leveraging sufficient funding for program

activities from non-USGS sources. Congress has provided funding for the institutes from FY2002

to FY2006, appropriating $6.4 million for FY2006. The House and the Senate Appropriations

Committee-reported bills would retain funding for the Institutes at $6.4 million.

The Administration requested an increase of $2.3 million for network operations under the

National Streamflow Information Program (NSIP), which would receive a total of $16.8 million

for FY2007. These additional funds would be used to continue the operation of 114 streamgages

that would otherwise be shut down due to the anticipated loss of partner contributions. Further,

they would allow for the number of streamgages to increase by 30 nationwide. Through the NSIP

program, the USGS collects the streamflow data needed by federal, state, and local agencies for

planning, operating water-resources projects, and regulatory programs. The bill passed by the

House and reported by the Senate Appropriations Committee also would provide this increase.

Biological Research

The Biological Research Program under the USGS generates and distributes information related

to the conservation and management of the nation’s biological resources. The Administration

requested $172.6 million for biological research, which is $2.3 million below the FY2006 enacted

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level of $174.9 million. The House-passed bill would provide $175.6 million for this heading, and

the Senate Appropriations Committee would provide $176.5 million.

Under the Administration’s request, several earmarked activities totaling $6.4 million under the

Biological Research and Monitoring Program would be removed for FY2007. According to the

USGS, these projects do not address the highest priority science. Some of these program

reductions would be restored in the House-passed bill and the Senate committee-reported bill.

Under the Terrestrial and Endangered Resources sub-activity, the USGS will be conducting

activities related to Highly Pathogenic Avian Influenza (HPAI). The Administration requested

$3.2 million for FY2007 to continue USGS avian flu detection activities. In cooperation with the

FWS and other federal and state agencies, the USGS began targeted surveillance for the early

detection of HPAI in wild birds in Alaska in 2005, collecting samples from 520 birds of 10

species that are known to migrate through the Russian Far East and Southeast Asia. A steering

committee was formed in 2006 to coordinate efforts and establish standard operating procedures

for sampling and analysis. For 2007, the USGS will continue sampling birds for HPAI and

coordinate with other agencies to deal with avian influenza in North America. The House-passed

bill and Senate Appropriations Committee-reported bill provide these increases.

Science Support and Facilities

Science Support focuses on those costs associated with modernizing the infrastructure for

managing and disseminating scientific information. The Administration requested $67.4 million

for science support, a decrease of $1.9 million from the FY2006 enacted level of $69.3 million.

The House-passed bill would provide $72.4 million, and the Senate Appropriations Committeereported bill would provide $67.4 million.

Facilities focuses on the costs for maintenance and repair of facilities. The Administration

requested $95.5 million for facilities for FY2007, an increase of $0.7 million from the FY2006

enacted level of $94.8 million. The House-passed bill and the Senate Appropriations Committeereported bill would provide $95.5 million for Facilities, the same as the requested amount and

$0.7 million above the FY2006 enacted level.

Table 10. Appropriations for the U.S. Geological Survey, FY2005-FY2007

($ in millions)

FY2006

Approp.

FY2007

Request

FY2007

House

Passed

FY2007

Senate

Comm.

Enterprise Information

$46.4

$111.2

$113.7

$106.0

National Mapping Program

129.3

76.6

78.6

78.6

Geologic Hazards, Resources, and Processes

235.3

217.4

241.9

239.3

Water Resources Investigations

211.8

204.1

213.8

216.8

Biological Research

174.9

172.6

175.6

176.5

Science Support

69.3

67.4

72.4

67.4

U.S. Geological Survey

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U.S. Geological Survey

Facilities

FY2006

Approp.

FY2007

Request

FY2007

House

Passed

FY2007

Senate

Comm.

94.8

95.5

95.5

95.5

Decrease in House Floor Action

Total Appropriations

-5.0

$980.8b

$944.8

$986.4

$980.1

a.

The total includes emergency appropriations of $1.0 million provided in P.L. 108-324 and $8.1 million in P.L.

109-13.

b.

The total includes emergency appropriations of $9.0 million provided in P.L. 109-148 and $10.2 million

provided in P.L. 109-234.

For further information on the U.S. Geological Survey, see its website at http://www.usgs.gov/.

Minerals Management Service

The Minerals Management Service (MMS) administers two programs: the Offshore Minerals

Management (OMM) Program and the Minerals Revenue Management (MRM) Program. OMM

administers competitive leasing on Outer Continental Shelf (OCS) lands and oversees production

of offshore oil, gas, and other minerals. MRM collects and disburses bonuses, rents, and royalties

paid on federal onshore and OCS leases and Indian mineral leases. Revenues from onshore leases

are distributed to states in which they were collected, the general fund of the U.S. Treasury, and

designated programs. Revenues from the offshore leases are allocated among the coastal states,

the Land and Water Conservation Fund, the Historic Preservation Fund, and the U.S. Treasury.

The MMS estimates that it collects and disburses over $8 billion in revenue annually. This

amount fluctuates based primarily on the prices of oil and natural gas. Over the past decade,

royalties from natural gas production have accounted for 40% to 45% of annual MMS receipts,

while oil royalties have been not more than 25%.

Budget and Appropriations

The Administration submitted an FY2007 total MMS budget of $292.3 million. This includes

$6.9 million for Oil Spill Research and $285.4 million for Royalty and Offshore Minerals

Management. The total FY2007 budget request reflected $163.6 million in appropriations and an

additional $128.7 million from offsetting collections which MMS has been retaining since 1994.

The Administration’s total budget request is 6% below the $312.0 million enacted for FY2006

(including emergency appropriations of $31.0 million). The net appropriations request for

FY2007 of $163.6 million is a 14% reduction from the $189.3 million enacted for FY2006. The

House recommended $164.4 million, slightly higher than the request due to a greater increase for

Royalty and Offshore Minerals Management. The Senate Appropriations Committee approved

funding for programs at levels similar to the House-passed version and the Administration’s

request. See Table 11 below.

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Table 11. Appropriations for the Minerals Management Service, FY2006-FY2007

($ in millions)

FY2006

Approp.

FY2007

Request

FY2007

House

Passed

FY2007

Senate

Comm.

$148.8

$159.4

$158.4

$159.2

—Royalty Management (MRM)

77.9

79.2

79.2

79.2

—General Administration

47.5

46.9

48.7

46.9

—Gross, Royalty and Offshore Minerals Management

305.1a

285.4

286.2

285.3

—Use of Receipts

-122.7

-128.7

-128.7

-128.7

Total, Royalty and Offshore Minerals

Management Appropriations

182.4

156.7

157.5

156.6

6.9

6.9

6.9

6.9

$189.3

$163.6

$164.4

$163.5

Minerals Management Service

Royalty and Offshore Minerals Management

—OCS Lands (OMM)

Oil Spill Research

Total Appropriations

a.

Includes emergency appropriations of $16.0 million in P.L. 109-148 and $15.0 million in P.L. 109-234.

Oil and Gas Leasing Offshore

Issues not directly tied to specific funding accounts remain controversial. Oil and gas

development moratoria in the Outer Continental Shelf (OCS) along the Atlantic and Pacific

Coasts, parts of Alaska, and the Gulf of Mexico (GOM) have been in place since 1982, as a result

of public laws and executive orders of the President. The FY2006 appropriations law retained the

moratorium on funding preleasing and leasing activities in the OCS.

The House and the Senate Appropriations Committee retained the moratoria on oil and natural

gas leasing in their versions of the FY2007 appropriations bill. The House Appropriations

Committee had approved an amendment that would have allowed for natural gas leasing in the

OCS moratoria areas. Oil leasing would still have been prohibited. The House voted to restore the

moratoria on natural gas development in certain offshore areas and also to defeat an amendment

to strike sections 104-106 of the bill that contain the OCS oil leasing moratoria. Separately,

legislation (H.R. 4761) that passed the House on June 29, 2006, would allow natural gas-only

drilling in areas currently under the moratoria and give the states a larger share of the revenue

generated from U.S. offshore leases. The bill also addresses royalty relief issues discussed below

by establishing a “conservation of resources” fee for those leases without price thresholds. (For

more information, see CRS Report RL33493, Outer Continental Shelf: Debate Over Oil and Gas

Leasing and Revenue Sharing, by (name redacted).)

Royalty relief for OCS oil and gas producers has been debated during consideration of FY2007

Interior appropriations. On February 13, 2006, the New York Times reported that the MMS would

not collect royalties on leases awarded in 1998 and 1999 because no price threshold was included

in the lease agreements during those two years. Without the price thresholds, producers may

produce oil and gas up to specified volumes without paying royalties no matter what the price.

The MMS asserts that placing price thresholds in the lease agreements is at the discretion of the

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Secretary of the Interior. However, according to the MMS, the price thresholds were omitted by

mistake during 1998 and 1999.9

A House committee amendment to the FY2007 Interior appropriations bill sought to require the

Secretary of the Interior to include price thresholds in all leases (based on $34.71/barrel of oil and

$4.34/thousand cubic feet of natural gas) and require the Secretary to renegotiate leases to

conform with current price thresholds levels. This provision would have impacted the 1998 and

1999 leases and those shallow water deep-gas leases with price threshold levels currently around

$9.90/thousand cubic feet. The committee language, however, was removed from the bill on a

point of order during the House floor debate. Subsequently, the House agreed to an amendment

that would prohibit funds in the bill from being used to issue new lease sales to current lessees

that do not have price thresholds in their leases. Opponents of the amendment argued that the

companies with valid leases, even though without price thresholds, should not be penalized. The

Senate Appropriations Committee approved language on price thresholds, in an amendment

during markup, that is similar to the House-passed version. The Senate Appropriations Committee

also approved an amendment that would require the Secretary of the Interior to seek to

renegotiate the leases to include price thresholds and to report to Congress on the results of such

efforts. The amendment also sought to affirm the authority of the Secretary of the Interior to vary

the suspension of royalties based on the price of production of a lease.

Leasing in the Eastern Gulf of Mexico has been controversial over the past several years. There

were several blocks that were removed by the Administration from Eastern GOM sale 181 that

could become available for release after 2007, as part of the Administration’s proposed five-year

(2007-2012) leasing program. A Senate proposal (S. 2253) would make available for lease about

3.6 million acres within the lease sale 181 area within one year of enactment of the bill—prior to

the next five-year lease program. Some coastal state senators are seeking to attach state revenue

sharing language to the bill, while others oppose the bill because, they assert, it would offer leases

too close to Florida’s coast. Industry groups contend that Eastern GOM sales are too limited,

asserting that the resource potential is significant. Environmental groups and some state officials

contend that the risks of development to the environment and local economies are too great.

Oil and gas leasing in offshore California also has continued to be a controversial issue. Under

the Coastal Zone Management Act of 1972 (16 U.S.C. §1451), development of federal offshore

leases must be consistent with state coastal zone management plans. In 1999, MMS extended 36

of the 40 leases at issue in offshore California by granting lease suspensions, but the State of

California contended that it should have first reviewed the suspensions for consistency with the

state’s coastal zone management plan. In June 2001, the U.S. Court for the Northern District of

California agreed with the State of California and struck down the MMS suspensions.

The Bush Administration appealed this decision January 9, 2002, to the U.S. Ninth Circuit Court

of Appeals, after the state rejected a more limited lease development plan that involved 20 leases

using existing drilling platforms. However, on December 2, 2002, a three-judge panel of the

Ninth Circuit upheld the District Court decision.10 The Department of the Interior did not appeal

this decision and is currently working with lessees to resolve the issue.

9

This information is from discussions with Walter Cruickshank, Deputy Director of MMS, during April, 2006.

Ninth U.S. Circuit Court of Appeals, California v. Norton, 01-16637.

10

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A breach-of-contract lawsuit was filed against MMS by nine oil companies seeking compensation

for their undeveloped leases. On November 17, 2005, the U.S. Federal Court of Claims made a

determination that the federal government breached its contract with the lessees regarding the

36 offshore California leases. Although the government was ordered to repay the lessees $1.1

billion, the judge deferred a final judgment until additional claims (such as recovery of sunk

costs) are resolved.

For further information on the Minerals Management Service, see its website at

http://www.mms.gov.

CRS Report RL33493, Outer Continental Shelf: Debate Over Oil and Gas Leasing and Revenue

Sharing, by (name redacted).

Office of Surface Mining Reclamation and Enforcement

The Surface Mining Control and Reclamation Act of 1977 (SMCRA, P.L. 95-87; 30 U.S.C.

§1201 note) established the Office of Surface Mining Reclamation and Enforcement (OSM) to

ensure that land mined for coal would be returned to a condition capable of supporting its premining land use. SMCRA also established an Abandoned Mine Lands (AML) fund, with fees

levied on coal production, to reclaim abandoned sites that pose serious health or safety hazards.

The law provided that individual states and Indian tribes would develop their own regulatory

programs incorporating minimum standards established by law and regulations. Fee collections

have been broken up into federal and state shares. Grants are awarded to the states after applying

a distribution formula to the annual appropriation that calculates not only how much money goes

to each state, but also what portion came from each of the state and federal share accounts. In

instances where states have no approved program, OSM directs reclamation.

Several states have pressed in recent years for increases in the AML appropriations, with an eye

on the unappropriated balances in the state-share accounts that now exceed $1 billion. The total

unappropriated balance—including both federal and state share accounts in the AML fund—was

$1.8 billion by the end of FY2005. Western states are additionally critical of the program because,

as coal production has shifted westward, these states are paying more into the fund. They have

contended that they are shouldering a disproportionate share of the reclamation burden as more of

the sites requiring remediation are in the East.11

The FY2005 and FY2006 budget requests from the Administration were accompanied by a

proposal to restructure the program, including a plan to return the unobligated balances to the

states. The Administration plan was not widely supported. Other proposals for reauthorization of

AML collections and restructuring the program have been introduced in the House and Senate,

but Congress has not reached a consensus surrounding the structure of the program.

As a consequence, reauthorization of fee collection during the last few fiscal years has been for

relatively short terms, with the most recent extension through September 30, 2007. The FY2007

request does not include any broad Administration proposal to change the program, and instead

seeks what the Administration describes as an “interim extension” through the end of FY2007

11

Interest generated by unappropriated balances in the AML fund is transferred to the United Mine Workers of

America Combined Benefit Fund, established by P.L. 102-486 to cover the unreimbursed health cost requirements of

retired miners.

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“while allowing the Administration to continue working with Congress on finding an appropriate,

fiscally responsible and fair, long-term resolution to the reauthorization discussion.”12 In report

language, the House Appropriations Committee supported an interim extension and also

expressed that a more permanent solution is needed.

For FY2007, the Administration sought $185.9 million, an increase of $0.7 million over the

FY2006 enacted level of $185.2 million. The other component of the OSM budget is for

regulation and technology programs. For regulation and technology, Congress provided $108.9

million in FY2006, and the Administration requested $112.2 million. The greater part of the $3.3

million increase (3%) is for environmental protection. In total, the Administration requested

$298.1 million for the OSM for FY2007, a $4.0 million increase (1%) over the FY2006 enacted

level of $294.2 million. The Senate Appropriations Committee and the House supported the same

levels of funding as the Administration requested for FY2007. See Table 12 below.

In its FY2007 budget, the Administration requested $1.5 million for minimum program states.

These states have significant AML problems, but insufficient levels of current coal production to

generate significant fees to the AML fund. While Congress is authorized to appropriate $2 million

annually to minimum program states, Congress has appropriated $1.5 million to minimum

program states since FY1996. The Senate Appropriations Committee and the House retained

language limiting funding for minimum program states to $1.5 million. The SMCRA legislation

also provided that 10% of AML collections would be allocated to the Rural Abandoned Mine

Program (RAMP), administered by the Department of Agriculture. However, no funds have been

requested for RAMP since FY1996, and the $361 million balance in funds set aside for RAMP

were transferred to the federal share of AML collections in the FY2006 appropriation. The

FY2007Administration request recommended that this practice continue. The House included

language transferring the RAMP balance to the federal share fund but the Senate Appropriations

Committee did not.

Table 12. Appropriations for the Office of Surface Mining Reclamation and

Enforcement, FY2006-FY2007

($ in millions)

Office of Surface Mining

Reclamation and Enforcement

FY2006

Approp.

FY2007

Request

FY2007

House

Passed

FY2007

Senate

Comm.

Regulation and Technology

$108.9

$112.2

$112.2

$112.2

—Environmental Protection

78.4

81.0

81.0

81.0

Abandoned Mine Reclamation Fund

185.2

185.9

185.9

185.9

Total Appropriations

$294.2

$298.1

$298.1

$298.1

For further information on the Office of Surface Mining Reclamation and Enforcement, see its

website at http://www.osmre.gov/osm.htm.

CRS Report RL32993, Abandoned Mine Reclamation Fee on Coal, by (name redacted).

12

U.S. Dept. of the Interior, Office of Surface Mining Reclamation and Enforcement, Budget Justification and

Performance Information, Fiscal Year 2007, p. 49-50.

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Bureau of Indian Affairs

The Bureau of Indian Affairs (BIA) provides a variety of services to federally-recognized

American Indian and Alaska Native tribes and their members, and historically has been the lead

agency in federal dealings with tribes. Programs provided or funded through the BIA include

government operations, courts, law enforcement, fire protection, social programs, education,

roads, economic development, employment assistance, housing repair, dams, Indian rights

protection, implementation of land and water settlements, management of trust assets (real estate

and natural resources), and partial gaming oversight.

BIA’s FY2006 direct appropriations are $2.27 billion. For FY2007, the Administration proposed

$2.22 billion, a decrease of $52.4 million (2.3%) below FY2006. The House approved $2.23

billion, a reduction of $39.6 million (2%) below FY2006, but an increase of $12.8 million (0.6%)

over the Administration proposal. The Senate Appropriations Committee recommended $2.27

billion, a reduction of $1.8 million (0.08%) below FY2006, but an increase of $50.6 million

(2.3%) over the Administration proposal and of $37.8 million (1.7%) over the House. For the

BIA, its major budget components, and selected BIA programs, Table 13 below presents funding

figures for FY2006 and for the Administration, the House, and the Senate Appropriations

Committee for FY2007, with the percentages of change from FY2006 to the Senate

Appropriations Committee-recommended levels for FY2007. Decreases are shown with minuses.

Key issues for the BIA, discussed below, include the reorganization of the Bureau, especially its

trust asset management functions, and problems in BIA education programs, including the

Administration’s proposal not to fund the Johnson-O’Malley program.

Budget Presentation

The BIA’s budget presentation of its Operation of Indian Programs activities, in which programs

with the same budget function (e.g., education) were formerly included in different budget

activities (e.g., “Tribal Priority Allocations,” “Other Recurring Programs”), has been restructured

so that programs with the same function fall under the same budget activity (e.g., “Education”).

Table 13 below illustrates the new structure. The Tribal Priority Allocations (TPA) budget

activity is significant to tribes because it covers many basic tribal services. Perhaps more

importantly, tribes may apply their own priorities to TPA programs, moving funds among

programs without prior BIA approval and without triggering congressional Appropriation

Committees’ requirements for approval of reprogramming. The BIA identifies in its FY2007

Budget Justifications the amounts within the new budget activities that fall in the TPA category.

Those amounts are shown in Table 13. According to BIA figures, the total TPA funding proposed

for FY2007 was $754.1 million. Other sources suggest TPA funding for FY2006 was $769.5

million, but it is not certain that the BIA’s FY2007 figures cover all of the same programs. The

House and Senate Appropriations Committees commended the new budget structure, but the

House committee required the BIA to report on the budget structure and tribes’ reactions, TPA

transparency, BIA management accountability, and BIA central and regional offices’ funding.

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Table 13. Appropriations for the Bureau of Indian Affairs, FY2006-FY2007

($ in thousands)

FY2007 Senate

Committee

FY2007 Request

TPAa

FY2007

House

Passed

Total

Change

from

FY2006

$401,738

$394,374

$401,738

$397,738

6%

132,628

151,628

151,628

151,628

147,628

11%

150,416

139,385

135,449

139,385

145,385

-3%

85,190

74,179

74,179

74,179

80,179

-6%

Trust - Natural Resources Management

152,754

142,510

63,279

141,510

150,810

-1%

Trust - Real Estate Services

141,842

152,649

55,480

151,593

150,649

6%

—Probate

15,708

19,075

8,193

18,019

19,075

21%

—Real Estate Services

40,578

47,647

31,249

47,647

45,647

12%

646,430

639,155

30,786

652,214

664,805

3%

—Elementary/ Secondary (ForwardFunded)

457,750

457,352

0

457,352

457,352

-<1%

—Elementary/ Secondary [Other]

77,223

60,800

0

73,859

75,171

-3%

—Johnson-O’Malley Grants

16,371

0

0

16,371

14,371

-12%

104,010

103,161

30,786

103,161

114,440

10%

Bureau of Indian Affairs

FY2006

Approp.

Total

$374,689

Operation of Indian Programs

Tribal Government

—Contract Support Costs

Human Services

—Welfare Assistance

Education

—Post Secondary Programs

—Tribal Colleges and Universities

55,545

54,721

0

54,721

60,000

8%

—Tribal Vocational Collegesb

—

—

—

—

6,000

15%

—Education Management

8,783

17,842

0

17,842

17,842

103%

212,142

213,729

12,109

209,535

214,873

1%

55,567

58,663

0

55,949

58,663

6%

51,782

39,175

38,204

39,175

43,525

-16%

—Tribal Vocational Collegesb

5,223

0

0

0

—

—

Executive Direction and Administrative

Services

232,135

238,253

24,379

238,253

$237,753

2%

—Office of Federal Acknowledgment

1,350

1,850

0

1,850

1,350

0%

—Information Resources Technology

57,431

53,365

0

53,365

53,365

-7%

1,962,190

1,966,594

754,060

1,973,404

2,005,538

2%

206,787

157,441

—

157,441

157,441

-24%

—Replacement School Construction

64,530

36,536

—

36,536

36,536

-43%

—Education Facilities Improvement

and Repair

113,395

92,053

—

92,053

92,053

-19%

Public Safety and Justice

—Detention/ Corrections

Community and Economic Development

Subtotal, Operation of Indian

Programs

Construction

Education Construction

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FY2007 Senate

Committee

FY2007 Request

TPAa

FY2007

House

Passed

Total

Change

from

FY2006

11,611

—

11,611

11,611

<1%

8,102

8,106

—

8,106

8,106

<1%

Resources Management Construction

45,099

37,810

—

38,560

44,220

-2%

General Administration Construction;

Management

8,093

8,187

—

8,187

8,187

1%

Subtotal, Construction

271,582

215,049

—

215,799

$221,459

-18%

Land and Water Claim

Settlements and Miscellaneous

Payments

34,243

33,946

—

39,213

39,213

15%

Indian Guaranteed Loan Program

6,255

6,262

—

6,262

6,262

<1%

FY2006

Approp.

Total

Public Safety and Justice Construction

11,603

—Law Enforcement Facilities

Improvement and Repair

Bureau of Indian Affairs

Total Appropriations

$2,274,270 $2,221,851 $754,060 $2,234,678 $2,272,472 -<1%

a.

Tribal Priority Allocations (TPA) are a subset of funds for BIA Operation of Indian Programs. The amounts

in this column are included in the “FY2007 Request—Total” column in the table.

b.

The Senate Appropriations Committee moved the tribal vocational colleges program from the Community

and Economic Development activity to the Post Secondary Programs activity. The percent change for tribal

vocational colleges under Post Secondary Programs is calculated using the FY2006 appropriation under

Community and Economic Development.

BIA Reorganization

In April 2003, Secretary of the Interior Norton began implementing a reorganization of the BIA,

the Office of Assistant Secretary-Indian Affairs (AS-IA), and the Office of Special Trustee for

American Indians (OST) in the Office of the Interior Secretary. (See “Office of Special Trustee”

section below.) The reorganization arose from issues and events related to trust funds and trust

assets management, and is integrally related to the reform and improvement of trust management.

Historically, the BIA has been responsible for managing Indian tribes’ and individuals’ trust funds

and trust assets. Trust assets include trust lands and the lands’ surface and subsurface economic

resources (e.g., timber, grazing, or minerals), and cover about 45 million acres of tribal trust land

and 10 million acres of individual Indian trust land. Trust assets management includes real estate

services, processing of transactions (e.g., sales and leases), surveys, appraisals, probate functions,

land title records activities, and other functions.

The BIA, however, has been frequently charged with mismanaging Indian trust funds and trust

assets. Investigations and audits in the 1980s and after supported these criticisms, especially in

the areas of accounting, linkage of owners to assets, and retention of records. This led to a trust

reform act in 1994 and the filing of an extensive court case in 1996. (See “Office of Special

Trustee” section, below.) The 1994 act created the OST, assigning it responsibility for oversight

of trust management reform. In 1996, trust fund management was transferred to the OST from the

BIA, but the BIA retained management of trust assets.

Unsuccessful efforts at trust management reform in the 1990s led DOI to contract in 2001 with a

management consultant firm. The firm’s recommendations included both improvements in trust

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management and reorganization of the DOI agencies carrying out trust management and

improvement. 13 After nearly a year of consultation with Indian tribes and individuals, DOI

announced the reorganization in December 2002, even though the Department and tribal leaders

had not reached agreement on all aspects of reorganization. DOI, however, faced a deadline in the

court case to file a plan for overall trust management reform, and reorganization was part of

DOI’s plan.

The current reorganization of BIA, AS-IA, and OST chiefly involves trust management structures

and functions. The BIA’s trust operations at regional and agency levels remains in those offices

but are split off from other BIA services. The OST adds trust officers to BIA regional and agency

offices to oversee trust management and provide information to Indian trust beneficiaries. The

BIA, OST, and AS-IA, together with the Office of Historical Trust Accounting in the Secretary’s

office, also are implementing a separate trust management improvement project. The project

includes improvements in trust asset systems, policies, and procedures, historical accounting for

trust accounts, reduction of backlogs, modernization of computer technology (the court case led

in 2001 to a continuing shutdown of much of BIA’s World-Wide-Web connections because of

security concerns), and maintenance of the improved system.

Many Indian tribes and tribal organizations, and the plaintiffs in the court case, have been critical

of the new reorganization and have asked that it be suspended. Tribes contend that the

reorganization is premature, because new trust procedures and policies are still being developed;

that it insufficiently defines new OST duties; and that other major BIA service programs are being

limited or cut to pay for the reorganization. For FY2004-FY2006, Congress responded to tribal

concerns by excluding from BIA reorganization certain tribes that have been operating trust

management reform pilot projects with their regional BIA offices. The House approved the same

exclusion for FY2007, and the Senate Appropriations Committee agreed. Congress has not,

however, suspended or stopped the reorganization.

BIA School System

The BIA funds 185 elementary and secondary schools and peripheral dormitories, with over

2,000 structures, educating about 48,000 students in 23 states. Tribes and tribal organizations,

under self-determination contracts and other grants, operate 120 of these institutions; the BIA

operates the remainder. BIA-funded schools’ key problems are low student achievement and,

especially, a large number of inadequate school facilities.

The Johnson-O’Malley (JOM) program provides supplementary education assistance grants for

tribes and public schools to benefit Indian students, and was funded at $16.4 million in FY2006.

The Administration proposed no funding for this program in FY2007, asserting that U.S.

Department of Education programs under Titles I (education of the disadvantaged) and VII

(Indian education) of the Elementary and Secondary Education Act provide funds for the same

purposes, and that the funds should be used for BIA-funded schools. Opponents disagree that the

Education Department programs can replace JOM’s culturally-relevant programs. The House

Appropriations Committee recommended restoring the JOM program to its FY2006 level of

$16.4 million, stating that other federal programs could not provide the funds because there was

no guaranteed one-to-one match between Department of Education grants and JOM funds. The

13

The report is available on the DOI website at http://www.doi.gov/indiantrust/pdf/roadmap.pdf.

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House approved the committee’s recommendation. The Senate Appropriations Committee

recommended a partial restoration of JOM funds, to $14.4 million.

Many BIA school facilities are old and dilapidated, with health and safety deficiencies. BIA

education construction covers both construction of new school facilities to replace facilities that

cannot be repaired, and improvement and repair of existing facilities. Schools are replaced or

repaired according to priority lists. The BIA has estimated the current backlog in education

facility repairs at $942 million.

Table 13 above shows education construction funds. For FY2007, the Administration proposed

reducing the appropriation for education construction by $49.3 million (24%). Included is a

reduction for replacement-school construction of 43%. The Administration asserts that the BIA

needs to focus on completing replacement schools funded in prior years. Opponents contend that

a large proportion of BIA schools need replacement or major repairs and that hence funding

should not be cut. The House approved the Administration’s proposal for BIA education

construction, and the Senate Appropriations Committee also agreed, albeit “reluctantly.”

However, the House Appropriations Committee disagreed that funding for new schools should be

reduced while current school construction projects are finished and expressed concern about large

amounts of unobligated construction balances from prior years. The House committee directed

BIA to report on the projected obligation of current unobligated balances and on improvements in

construction planning and design procedures, enrollment projections, and space standards. The

Senate Appropriations Committee echoed the House committee’s disagreement with the

Administration’s assertions and said it expected more “robust” appropriations requests for BIA

school construction in the future.

For further information on education programs of the Bureau of Indian Affairs, see its website at

http://www.oiep.bia.edu.

CRS Report RS22056, Native American Issues in the 109th Congress, by (name redacted).

Departmental Offices14

Insular Affairs

The Office of Insular Affairs (OIA) provides financial assistance to four insular areas—American

Samoa, the Commonwealth of the Northern Mariana Islands (CNMI), Guam, and the U.S. Virgin

Islands—as well as three former insular areas—the Federated States of Micronesia (FSM), Palau,

and the Republic of the Marshall Islands (RMI). OIA staff manages relations between these

jurisdictions and the federal government and work to build the fiscal and governmental capacity

of units of local government.

The total OIA request for FY2007 was $426.3 million, an amount slightly above that provided in

FY2006 ($425.6 million). OIA funding consists of two parts: (1) permanent and indefinite

appropriations and (2) discretionary and current mandatory funding subject to the appropriations

14

This section addresses selected activities/offices that fall under “Departmental Offices.” Total funding for

Departmental Offices is identified in Table 25 at the end of this report.

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process. Of the total request for FY2007, $347.1 million (81%) in permanent and indefinite

funding is required through statutes, as follows:

•

$202.4 million to three freely associated states (RMI, FSM, and Palau) under

conditions set forth in the respective Compacts of Free Association;15 and

•

$144.7 million in fiscal assistance through payments to territories, divided

between the U.S. Virgin Islands for estimated rum excise and income tax

collections, and Guam for income tax collections.

Discretionary and current mandatory funds that require annual appropriations constitute the

remaining 19% of the OIA budget. Two accounts—Assistance to Territories (AT) and the

Compact of Free Association (CFA)—comprise discretionary and current mandatory funding. AT

funding is used to provide grants for the operation of the government of American Samoa,

infrastructure improvement projects on many of the insular area islands, and specified natural

resource initiatives. The CFA account provides federal assistance to the freely associated states

pursuant to compact agreements negotiated with the federal government.

Discretionary and mandatory appropriations for FY2006 total $81.5 million (including

government-wide rescissions enacted in P.L. 109-148), with AT funded at $76.2 million and CFA

at $5.3 million. The FY2007 request would reduce AT funding to $74.4 million, and CFA

assistance to $4.9 million, for a total of $79.2 million. The House approved $3.2 million more for

AT ($77.6 million) than had been requested, for increased oversight and technical assistance

funding. The Senate Appropriations Committee recommended $76.5 million to fund AT activities,

an amount above the request and below that approved by the House. The House passed CFA

funding totaled $5.4 million, $0.5 million above the request specifically to support food

production activities necessary on Enewetak island as a result of destruction caused by World War

II conflicts as well as atomic bomb testing. The Senate Appropriations Committee concurred with

the House approved funding level for CFA.

In total, the House passed $82.9 million for Insular Affairs, 2% above FY2006 and 5% above the

Administration’s FY2007 request. The Senate Appropriations Committee recommended $81.8

million, which is lower than the House but higher than the request.

For further information on Insular Affairs, see its website at http://www.doi.gov/oia/index.html.

Payments in Lieu of Taxes Program (PILT)

For FY2007, the Administration requested $198.0 million for PILT, down 15% from the FY2006

level of $232.5 million. The Administration asserts that cutting PILT is part of an effort to reduce

the deficit, and is consistent with historical appropriations levels. The House Appropriations

Committee’s draft contained $216.0 million, but the House committee agreed to an amendment

transferring $12.0 million from the Smithsonian Institution to PILT, bringing the total to $228.0

million. (See “Smithsonian Institution, ‘Business Ventures’” section of this report for more

information.) A House floor amendment transferred an additional $16.0 million from Interior

15

Legislation to approve the amended compacts was enacted in the 108th Congress (P.L. 108-188). For background, see

CRS Report RL31737, The Marshall Islands and Micronesia: Amendments to the Compact of Free Association with

the United States, by (name redacted). The Compact with the Republic of Palau began in FY1994 and will terminate in

FY2009.

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Department salaries and expenses to PILT, to bring the figure to $244.0 million. The amendment

passed by voice vote. The Senate Appropriations Committee approved $235.1 million, 4% less

than the House.

The PILT program compensates local governments for federal land within their jurisdictions

which cannot be taxed. Since the beginning of the program in 1976, payments of more than $3.6

billion have been made. The PILT program has been controversial, because in recent years the

payment formula, which was indexed to the Consumer Price Index in 1994, has increased

authorization levels. However, appropriations have grown less rapidly, and substantially slower

than authorized amounts, ranging from 42% to 68% of authorized levels between FY2000 and

FY2006 (the most recent year available). 16 See Table 14, below. County governments claim that

the program as a whole does not provide funding comparable to property taxes, and further that

rural areas in particular need additional PILT funds to provide the kinds of services that counties

with more private land are able to provide.

Table 14. Authorized and Appropriated Levels for Payments in Lieu of Taxes,

FY2000-FY2007

($ in millions)

Fiscal Year

Authorized

Amount

Appropriated

Amount

% of Authorized

Amount

2000

$317.6

$134.0

42.2

2001

338.6

199.2

58.8

2002

350.8

210.0

59.9

2003

324.1

218.2

67.3

2004

331.3

224.3

67.7

2005

332.0

226.8

68.3

2006

344.4

232.5

67.5

2007

352.0

244.0/235.1a

70.2/67.6

Notes: The FY2007 authorized level, in italics, is an estimate. Calculation of the level assumes (1) all revenues

from other payment programs are flat over the period; (2) the number of acres eligible for PILT payments is

unchanged; (3) all of the counties’ populations are unchanged; and (4) no states change their “pass-through” laws.

In consequence, only the changes in the Consumer Price Index would influence PILT payments. However, it is

likely that at least some of these assumptions would need to be modified.

a.

The first figure is the amount passed by the House; the second is the amount approved by the Senate

Appropriations Committee.

For further information on the Payments in Lieu of Taxes program, see the DOI website at

http://www.doi.gov/pilt/.

CRS Report RL31392, PILT (Payments in Lieu of Taxes): Somewhat Simplified, by (name red

acted).

16

When appropriations are not sufficient to cover the authorization, each county receives a pro rata share of the

authorized amount.

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Office of Special Trustee for American Indians

The Office of Special Trustee for American Indians (OST), in the Secretary of the Interior’s

office, was authorized by Title III of the American Indian Trust Fund Management Reform Act of

1994 (25 U.S.C. §§4001 et seq.). The OST generally oversees the reform of Interior Department

management of Indian trust assets, the direct management of Indian trust funds, establishment of

an adequate trust fund management system, and support of department claims settlement

activities related to the trust funds. Indian trust funds formerly were managed by the BIA, but in

1996 the Secretary transferred trust fund management to the OST. (See “Bureau of Indian

Affairs” section above.)

Indian trust funds managed by the OST comprise two sets of funds: (1) tribal funds owned by

about 300 tribes in approximately 1,450 accounts, with a total asset value of about $2.9 billion;

and (2) individual Indians’ funds, known as Individual Indian Money (IIM) accounts, in about

277,000 accounts with a current total asset value of about $400 million. (Figures are from the

OST FY2007 budget justifications.) The funds include monies received from claims awards, land

or water rights settlements, and other one-time payments, and from income from land-based trust

assets (e.g., land, timber, minerals), as well as from investment income.

OST’s FY2006 appropriation was $222.8 million. The Administration proposed $244.5 million

for FY2007, an increase of $21.7 million (10%). The House approved $184.0 million for

FY2007, a reduction of $38.7 million (17%) from FY2006 and $60.4 million (25%) from the

proposal. The Senate Appropriations Committee recommended $217.8 million, a decrease of $4.9

million (2%) from FY2006 and $26.7 million (11%) from the Administration proposal but an

increase of $33.8 million (18%) over the House amount. Table 15 below presents funding figures

for FY2006-FY2007 for the OST. Key issues for the OST are an historical accounting for tribal

and IIM accounts, and litigation involving tribal and IIM accounts.

Table 15. Appropriations for the Office of Special Trustee for American Indians,

FY2006-FY2007

($ in thousands)

FY2007 Senate

Committee

Office of Special Trustee for

American Indians

FY2006

Approp.

FY2007

Request

FY2007

House

Passed

Total

Change

from

FY2006

Federal Trust Programs

$188,774

$185,036

$150,036

$178,683

-5%

—Historical Accounting

56,353

56,353

45,000

50,000

-11%

Indian Land Consolidation

34,006

59,449

34,006

39,150

15%

Total Appropriations

$222,780

$244,485

$184,042

$217,833

-2%

Historical Accounting

For FY2007, the Administration proposed $56.4 million for historical accounting activities, the

same as enacted for FY2006. The House approved $45.0 million for FY2007, while the Senate

Appropriations Committee recommended $50.0 million. The historical accounting effort seeks to

assign correct balances to all tribal and IIM accounts, especially because of litigation. Because of

the long historical period to be covered (some accounts date from the 19th century), the large

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Interior, Environment, and Related Agencies: FY2007 Appropriations

number of IIM accounts, and the large number of missing account documents, an historical

accounting based on actual account transactions is expected to be large and time-consuming. The

Interior Department in 2003 proposed an extensive, five-year, $335 million project to reconcile

IIM accounts. The project would reconcile all transactions for certain types of accounts and all

land-based transactions of $5,000 and over, but a statistical sample for land-based transactions of

less than $5,000. OST continues to follow this plan, subject to court rulings (see “Litigation”

below) or congressional actions. Plaintiffs in the litigation consider the statistical sampling

technique invalid. For FY2007, the House Appropriations Committee did not disagree with DOI’s

historical accounting plan, but expressed its intent to limit spending for historical accounting and

also directed DOI to make quarterly reports on any use of funds from BIA “Operation of Indian

Programs” for IIM litigation support costs. The Senate Appropriations Committee expressed

regret at not being able to fund the Administration’s full request.

Litigation

An IIM trust funds class-action lawsuit (Cobell v. Norton) was filed in 1996, in the federal district

court for the District of Columbia, against the federal government by IIM account holders.17

Many OST activities are related to the Cobell case, including litigation support activities. The

most significant issue for appropriations concerns the method for the historical accounting to

estimate IIM accounts’ proper balances. The DOI estimated its proposed method would cost $335

million over five years and produce a total owed to IIM accounts in the low millions. The

plaintiffs’ method, based on estimated rates of errors applied to an agreed-upon figure for IIM

throughput, was estimated to produce a total owed to IIM accounts of as much as $177 billion,

depending on the error rate used. After a lengthy trial, the court, in September 2003, rejected both

the plaintiffs’ and DOI’s historical accounting plans and ordered DOI to account for all trust fund

and asset transactions since 1887, without using statistical sampling. The Interior Department

estimated that the court’s choice for historical accounting would cost $6-$12 billion.

In the FY2004 Interior appropriations act, Congress enacted a controversial provision aimed at

the court’s decision. It directed that no statute or trust law principle should be construed to require

DOI to conduct the historical accounting until either Congress had delineated the department’s

specific historical accounting obligations or December 31, 2004, whichever was earlier. Based on

this provision, the DOI appealed the court’s September 25, 2003 order. The U.S. Court of Appeals

for the District of Columbia temporarily stayed the September 25 order. During the stay, on April

5, 2004, the IIM plaintiffs and the federal government commenced mediation. On December 10,

2004, the Appeals Court overturned much of the September 25 order, finding that the

congressional provision prevented the district court from requiring DOI to follow its directions

for a historical accounting. The Appeals Court noted that the provision expired on December 31,

2004, but did not discuss the district court’s possible reissue of the order. On February 23, 2005,

the district court issued an order on historical accounting very similar to its September 2003

order, requiring that an accounting cover all trust fund and asset transactions since 1887 and not

use statistical sampling. The DOI, which estimated that compliance with the new order would

cost $12-13 billion, 18 appealed the order. The Appeals Court on November 15, 2005, vacated the

17

Cobell v. Norton (Civil No. 96-1285) (D.D.C.). Updated information is available on the websites of the plaintiffs at

http://www.indiantrust.com, the DOI at http://www.doi.gov/indiantrust/, and the Justice Department at

http://www.usdoj.gov/civil/cases/cobell/index.htm.

18

Testimony from the Interior Department estimated the cost at $12-13 billion (James Cason, Associate Deputy

Secretary, U.S. Dept. of the Interior, Statement before the House Committee on Appropriations, Subcommittee

(continued...)

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Interior, Environment, and Related Agencies: FY2007 Appropriations

district court’s February 2005 order. The district court has not yet issued another order, and the

OST continues its historical accounting under its September 2003 plan.

Congress has long been concerned that the current and potential costs of the Cobell lawsuit may

jeopardize DOI trust reform implementation, reduce spending on other Indian programs, and be

difficult to fund. Besides the ongoing expenses of the litigation, possible costs include $12-$13

billion for the court-ordered historical accounting, a Cobell settlement that might cost as much as

(1) the court-ordered historical accounting, (2) the more than $100 billion that Cobell plaintiffs

estimate their IIM accounts are owed, or (3) the $27.5 billion that the Cobell plaintiffs have

proposed as a settlement amount. 19 Among the funding sources for these large costs discussed in a

2005 House Interior Appropriations Subcommittee hearing were discretionary appropriations and

the Treasury Department’s “Judgment Fund,”20 but some senior appropriators consider the Fund

insufficient even for a $6-$13 billion dollar settlement.21 Among other options, Congress may

enact another delay to the court-ordered accounting, direct a settlement, or delineate the

department’s historical accounting obligations (which could limit, or increase, the size of the

historical accounting). Settlement bills (S. 1439 and H.R. 4322) would establish in the Treasury

Department’s general fund an IIM claim settlement fund with appropriations from the Judgment

Fund. The dollar size of the fund is left blank in both bills and is still being discussed among the

plaintiffs, the Administration, and Congress. A recent news story said a dollar figure may be

inserted in the Senate bill soon, and suggested it would be less than $10 billion, perhaps in the $6$8 billion range. 22 In considering the FY2007 Interior appropriations bill, the House

Appropriations Committee expressed its desire that Cobell be resolved but stated no opinion on a

settlement amount. The Senate Appropriations Committee noted that settlement efforts were

underway among the Cobell parties and congressional authorizing committees.

For further information on the Office of Special Trustee for American Indians, see its website at

http://www.ost.doi.gov/.

CRS Report RS22343, Indian Trust Fund Litigation: Legislation to Resolve Accounting Claims in

Cobell v. Norton, by (name redacted).

CRS Report RS21738, The Indian Trust Fund Litigation: An Overview of Cobell v. Norton, by (na

me redacted).

CRS Report RS22056, Native American Issues in the 109th Congress, by (name redacted).

(...continued)

on Interior, Environment, and Related Agencies, March 17, 2005). Previous Interior estimates of the cost were

$6-12 billion.

19

Trust Reform and Cobell Settlement Workgroup, “Principles for Legislation,” June 20, 2005, p. 2, at

http://www.indiantrust.com/_pdfs/20050620SettlementPrinciples.pdf.

20

The Judgment Fund is a permanent, indefinite appropriation for paying judgments against, and settlements by, the

U.S. Government. (See 31 U.S.C. §1304.)

21

Matt Spangler, “Treasury Fund May Be Short of Cash Needed to Settle Indian Royalty Case,” Inside Energy with

Federal Lands (March 21, 2005), p. 6.

22

Jerry Reynolds, “Washington in Brief,” Indian Country Today (June 30, 2006), at http://www.indiancountry.com/

content.cfm?id=1096413237, last accessed July 5, 2006.

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Interior, Environment, and Related Agencies: FY2007 Appropriations

National Indian Gaming Commission

The National Indian Gaming Commission (NIGC) was established by the Indian Gaming

Regulatory Act (IGRA) of 1988 (25 U.S.C. §§2701 et seq.) to oversee Indian tribal regulation of

tribal bingo and other Class II operations, as well as aspects of Class III gaming (e.g., casinos and

racing).23 The primary appropriations issue for NIGC is whether its funding is adequate for its

regulatory responsibilities.

The NIGC is authorized to receive annual appropriations of $2 million, but its budget

authority consists chiefly of annual fees assessed on tribes’ Class II and III operations. During

FY1999-FY2006, all NIGC activities have been funded from fees, with no direct appropriations.

The Administration, the House, and the Senate Appropriations Committee did not recommend a

direct appropriation for the NIGC for FY2007.

IGRA formerly capped NIGC fees at $8 million per year, but Congress amended IGRA (P.L. 109221) to create a formula-based fee ceiling—0.08% of the gross gaming revenues of all gaming

operations subject to regulation under IGRA. If this fee ceiling percentage were applied to the

latest NIGC figures for gross Indian gaming revenues ($19.4 billion in 2004), the fee ceiling

based on 2004 would be $15.5 million.

The NIGC in recent years had requested additional funding because it was experiencing increased

demand for its oversight resources, especially audits and field investigations. Congress had

responded, in the FY2003-FY2006 appropriations acts, by increasing the NIGC’s fee ceiling to

$12 million, but only for FY2004-FY2007. The Administration’s FY2007 NIGC budget proposal

requested that the fee ceiling be increased to $13 million for FY2008, and the House agreed.

The Senate Appropriations Committee did not agree and, in the light of the enacted formulabased fee ceiling, recommended repealing the FY2006 appropriations provision limiting the

FY2007 fee ceiling.

For further information on the National Indian Gaming Commission, see its website at

http://www.nigc.gov.

Title II: Environmental Protection Agency

EPA was established in 1970 to consolidate federal pollution control responsibilities that had been

divided among several federal agencies. EPA’s responsibilities have grown as Congress has

enacted an increasing number of environmental laws, as well as major amendments to these

statutes. Among the agency’s primary responsibilities are the regulation of air quality, water

quality, pesticides, and toxic substances; the management and disposal of solid and hazardous

wastes; and the cleanup of environmental contamination. EPA also awards grants to assist state

and local governments in controlling pollution.

EPA’s funding over time generally reflects an increase in overall appropriations to fulfill a rising

number of statutory responsibilities. Without adjusting for inflation, the agency’s appropriation

has risen from $1.0 billion when the agency was established in FY1970 to a high of $8.4 billion

23

Classes of Indian gaming were established by the IGRA, and NIGC has different but overlapping regulatory

responsibilities for each class.

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Interior, Environment, and Related Agencies: FY2007 Appropriations

in FY2004. For FY2007, the House has proposed $7.58 billion for EPA, and the Senate

Appropriations Committee has recommended $7.53 billion. The President had requested $7.32

billion. All of these amounts are less than the FY2006 appropriation of $7.64 billion, including

rescissions and supplementals. Congress made an additional $80.0 million available to EPA in

FY2006 by rescinding and redirecting previously appropriated agency funds that had not been

obligated for certain activities. 24 Consequently, the proposed FY2007 funding levels for EPA

reflect larger decreases when compared to the overall FY2006 funding of $7.72 billion, which

included new appropriations of $7.64 billion and $80.0 million in rescinded prior year funds

redirected to FY2006.

In floor debate, the House agreed to two amendments that increased EPA’s funding by $3.8

million above the amount that the House Appropriations Committee had recommended. One

amendment included $1.8 million for Energy Star programs aimed at improving energy

efficiency. In its report on H.R. 5386, the Senate Appropriations Committee recommended a

slight increase above the House amount for this program. The second House floor amendment

increased funding for EPA’s diesel emission reduction grant program by $2.0 million to a total of

$28.0 million. The Senate Appropriations Committee recommended $20.1 million for this grant

program. The President had requested $49.5 million.

The House also passed other floor amendments that would affect EPA’s implementation of certain

activities. For example, one amendment would prohibit funds from being spent on implementing

controversial guidance on determining federal jurisdiction over wetlands. 25 The Senate

Appropriations Committee did not recommend a similar prohibition. A few other House floor

amendments relevant to EPA were not agreed to. For example, one amendment would have

provided $800 million in additional funds for activities of several agencies, of which $250 million

would have been for EPA grants to states for Clean Water State Revolving Funds (SRFs). These

grants assist states in issuing loans to communities for wastewater infrastructure improvements,

discussed in the “Water Infrastructure” section, below.

Traditionally, EPA’s annual appropriation has been requested and enacted according to various

line-item appropriations accounts, of which there currently are eight. Table 16 indicates amounts

by appropriations account for FY2006 enacted, FY2007 requested, FY2007 House-passed, and

FY2007 Senate Appropriations Committee-reported.

24

P.L. 109-54 rescinded $80.0 million from prior years’ appropriations that EPA had not obligated for contracts,

grants, and interagency agreements, for which the funding authorization had expired. The law redirected these funds to

be available in FY2006 but did not specify how this funding was to be allocated among EPA’s accounts. EPA’s

FY2007 budget justification indicates that for FY2006, the agency allocated $66.0 million to State and Tribal

Assistance Grants, $11.0 million to Hazardous Substance Superfund, $2.0 million to Environmental Programs and

Management, and $1.0 million to Science and Technology.

25

See CRS Report RL33483, Wetlands: An Overview of Issues, by (name redacted).

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Interior, Environment, and Related Agencies: FY2007 Appropriations

Table 16. Appropriations for the Environmental Protection Agency, FY2006-FY2007

($ in millions)

FY2006

Approp.

FY2007

Request

FY2007

House

Passed

FY2007

Senate

Comm.

$730.8

$788.3

$808.0

$793.4

—Transfer in from Superfund account

30.2

27.8

30.0

27.8

Science and Technology Total

761.0

816.1

838.0

821.2

2,352.7

2,306.6

2,338.2

2,310.7

—Direct Appropriations

36.9

35.1

35.1

35.1

—Transfer in from Superfund account

13.3

13.3

13.3

13.3

Office of Inspector General Total

50.2

48.4

48.4

48.4

Buildings & Facilities

39.6

39.8

39.8

39.8

1,242.1

1,259.0

1,256.9

1,261.3

—Transfer out to Office of Inspector General

(13.3)

(13.3)

(13.3)

(13.3)

—Transfer out to Science and Technology

(30.2)

(27.8)

(30.0)

(27.8)

—Net Appropriations After Transfers

1,198.6

1,217.8

1,213.6

1,220.2

Leaking Underground Storage Tank Program

87.0

72.8

72.8

72.8

Oil Spill Response

15.6

16.5

16.5

16.5

—Clean Water State Revolving Fund (SRF)

886.8

687.6

687.6

687.6

—Drinking Water State Revolving Fund (SRF)

837.5

841.5

841.5

841.5

—Categorical and Other Grants

1,489.4

1,268.3

1,480.2

1,471.3

—Rescission and Redirection of Prior Funds

(80.0)a

—

—

—

State and Tribal Assistance Grants Total

3,133.7

2,797.4

3,009.3

3,000.4

Total Appropriations

$7,638.4

$7,315.5

$7,576.7

$7,529.9

Environmental Protection Agency

Science and Technology (S&T)

—Direct Appropriations

Environmental Programs and Management (EPM)

Office of Inspector General

Hazardous Substance Superfund Total

State and Tribal Assistance Grants (STAG)

Source: Prepared by the Congressional Research Service (CRS). Amounts are from the House and Senate

Appropriations Committees, reflecting rescissions and supplementals.

a.

Congress made an additional $80.0 million available to EPA in FY2006 by rescinding and redirecting prior

years’ appropriated funds that had not been obligated for contracts, grants, and interagency agreements, for

which the funding authorization had expired. This $80.0 million is shown as a reduction in the above table

to reflect new appropriations for FY2006. Including this $80.0 million, Congress made a total of $7.72 billion

available to EPA in FY2006.

Key Funding Issues

The House and the Senate Appropriations Committee proposed both decreases and increases for

individual EPA programs and activities throughout the various appropriations accounts when

compared to the President’s FY2007 request and the FY2006 appropriation. Although there have

been varying levels of interest in FY2007 funding for the agency’s programs and activities,

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Interior, Environment, and Related Agencies: FY2007 Appropriations

funding for water infrastructure within the State and Tribal Assistance Grants (STAG) account,

the cleanup of hazardous waste sites within the Superfund account, scientific research, and air

quality programs have received the most attention thus far in the second session of the 109th

Congress. Other areas of interest include funding for EPA’s homeland security activities, and

congressional funding priorities for individual research and water infrastructure projects, often

referred to as earmarks.26 The House allocated $270.0 million to congressional priority projects

for FY2007. The Senate Appropriations Committee set aside $280.0 million, the same as the

FY2006 congressional set-aside. As in past years, the President’s FY2007 request did not include

any funding for congressional priority projects in EPA’s budget. Proposed funding for each of the

above activities in which there has been broad congressional interest is discussed further below.

Water Infrastructure

From appropriations provided within the STAG account, EPA issues grants to states to support

Clean Water and Drinking Water State Revolving Funds (SRFs). These funds provide seed

monies for state loans to communities for wastewater and drinking water infrastructure projects,

respectively. The House and the Senate Appropriations Committee proposed $687.6 million for

Clean Water SRF grants, the same as the President requested, but less than the FY2006

appropriation of $886.8 million. The proposed decrease has been contentious, as there is

disagreement over the adequacy of funding to meet local needs, such as municipal sewage

treatment plant upgrades. Although appropriations for these grants have declined in recent years,

Congress has appropriated significantly more funding than the President has requested to meet

these needs. The proposals of the House and the Senate Appropriations Committee to approve the

President’s requested decrease for FY2007 depart from this trend.

The House and the Senate Appropriations Committee approved the President’s request of

$841.5 million for Drinking Water SRF grants, an increase above the FY2006 appropriation of

$837.5 million. The proposal to fund Drinking Water SRF grants at the requested level is

consistent with past years, as there generally has been less disagreement between Congress

and the Administration about the appropriate funding level for these grants. However, some

Members support higher funding to meet local drinking water needs, such as assistance to

help communities comply with new standards for drinking water contaminants (e.g., arsenic

and radium).

In addition to funding for Drinking Water SRF grants, the Senate Appropriations Committee

recommended $11.0 million to assist small public water systems in complying with safe drinking

water regulations. Of this amount, $5.5 million would be provided within the Science and

Technology account for alternative technology projects to help small water systems comply with

the disinfection byproducts (DBP) rules and related regulations. The remaining $5.5 million

would be provided within the Environmental Programs and Management account for a

competitive grant program to provide technical assistance to small drinking water systems for

complying with the arsenic and DBP regulations. 27

Congress also has provided specific funds in past appropriations for water infrastructure projects

in certain communities. Whether these needs should be met with SRF loan monies or earmarked

26

See CRS Report 98-518, Earmarks and Limitations in Appropriations Bills, by (name redacted).

See CRS Report RL33549, Safe Drinking Water Act: Background and Issues in the 109th Congress, by (name

redacted).

27

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Interior, Environment, and Related Agencies: FY2007 Appropriations

grant assistance has become controversial. Due in part to such concerns, and the competing needs

of many EPA activities in general, the amount of funding earmarked for water infrastructure

projects has declined since FY2004.28 The House set aside $200.0 million for “congressional

priority” water infrastructure projects within the STAG account for FY2007. The Senate

Appropriations Committee recommended $210.0 million for these types of projects. Both

amounts are more than the $197.1 million Congress set aside in the FY2006 appropriation. The

House and Senate Appropriations Committees identified the recipients of these funds in their

respective reports on H.R. 5386. As in past years, the President’s FY2007 budget did not include

any funding for congressional priority water infrastructure projects.

Superfund and Brownfields

Another prominent issue is the adequacy of funding for the Superfund program to clean up the

nation’s most hazardous waste sites. Some Members, states, and environmental organizations

have contended that more funds than have been appropriated are necessary to speed the pace of

cleanup at contaminated sites. The House, the Senate Appropriations Committee, and the

President proposed roughly similar amounts of $1.26 billion for the Superfund account (prior to

transfers to other accounts). As indicated in Table 16, these amounts vary somewhat, but all are

increases above the FY2006 appropriation of $1.24 billion. This account funds many activities

related to the cleanup of hazardous substances, including administration, enforcement, and certain

homeland security functions. However, only a portion of the funding is for “actual” (i.e.,

physical) cleanup of contaminated sites. The House approved $832.9 million for site cleanup, and

the Senate Appropriations Committee recommended $833.1 million, both slightly less than the

FY2006 appropriation of $833.9 million. The President had requested a larger decrease,

proposing $822.9 million for site cleanup. Some Members had questioned the President’s

requested decrease during budget oversight hearings, in light of public concerns about the pace of

cleanup to ensure protection of human health and the environment.

The source of funding for the Superfund program also has been an ongoing issue. Nearly all the

funding for the program in the Superfund account that the House, the Senate Appropriations

Committee, and the President have proposed would be provided from general U.S. Treasury

revenues. Three dedicated taxes (on petroleum, chemical feedstocks, and corporate income)

historically provided the majority of funding for the Superfund program. These taxes expired at

the end of 1995, and the remaining revenues were essentially used up by the end of FY2003.

Since then, Congress has funded the program almost entirely with general revenues. Although

cost recoveries from responsible parties, fines and penalties, and interest on the unexpended

balance of the trust fund continue to con

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