98-207: Appropriations for FY1999: Energy and Water Development

Coordinated by Marc Humphries and Carl Behrens
Environment and Natural Resources Policy Division

Updated October 27, 1998

CONTENTS

Summary
Most Recent Developments
Status
Title I: Corps of Engineers

Key Policy Issues

Title II: Department of the Interior

Background
Key Policy Issues

Title III: Department of Energy

Key Policy Issues

Research and Development Programs
Energy Resource R&D
Nuclear Energy
Science
National Security R&D

Environmental Management
Civilian Nuclear Waste Disposal
National Security Programs -- Russian Plutonium and Uranium

Title IV: Independent Agencies

Key Policy Issues

Tennessee Valley Authority
Nuclear Regulatory Commission

For Additional Reading
CRS Issue Briefs
CRS Reports

List of Tables

Table 1. Status of Energy and Water Appropriations, FY1999
Table 2. Energy and Water Development Appropriations, FY1992 to FY1999
Table 3. Energy and Water Development Appropriations Title I: Corps of Engineers
Table 4. Energy and Water Development Appropriations Title II: Central Utah Project Completion Account
Table 5. Energy and Water Development Appropriations Title II: Bureau of Reclamation
Table 6. Energy and Water Development Appropriations Title III: Department of Energy
Table 7. Energy and Water Development Appropriations Title IV: Independent Agencies

Summary

The Energy and Water Development appropriations bill includes funding for civil projects of the Army Corps of Engineers, the Department of the Interior's Bureau of Reclamation, much of the Department of Energy (DOE), and a number of independent agencies, including the Appalachian Regional Commission, the Nuclear Regulatory Commission (NRC), and the appropriated programs of the Tennessee Valley Authority (TVA). The Administration requested $21.7 billion for these programs for FY1999 compared with $21.0 billion appropriated for FY1998 and $19.97 billion for FY1997. The Senate, by a vote of 98-1, approved the Energy and Water bill (S. 2138) on June 18, 1998, for a total of $21.4 billion. The House , by a vote of 405-4 approved its version of the bill (H.R. 4060) on June 22, 1998 for $21.1 billion. The conference agreement, appropriating $21.2 billion, was reported out September 25, 1998. The conference report (H.Rept. 105-749) was approved by the House September 28, 1998, and approved by the Senate September 29, 1998. The President signed the bill October 7, 1998.

Key issues involving the Energy and Water Development appropriations programs included:

• Sharp cuts in the Corps of Engineers construction request. However, the House and Senate prevailed in supporting $1.43 billion, nearly double the amount of the request.

• Significant proposed increases in DOE's research and development programs and in the nuclear weapons program. Increases over FY1998 were approved by Congress, but the amount agreed to was 3.1% below the Administration's request. The nuclear weapons budget was hiked by about $300 million over the FY1998 amount.
• DOE's proposed "accelerated cleanup" of former weapons sites. Environmental cleanup programs were supported at near the level of the DOE request. However, the requested amount for the privatization of DOE waste management projects was cut in half by Congress.
• Increased funding for nuclear energy programs. Congress supported funding for nuclear energy programs at $41 million over FY1998 but $42 million less than the DOE request.
• Continued funding of TVA's non-power programs. Funding for TVA was not included in the Energy and Water Development bill for FY1999.

The FY1999 Omnibus Appropriations Act (P.L. 105-277) added money to several programs funded in the Energy and Water Appropriations bill, including the Corps of Engineers, DOE's renewable energy program and its defense activities program, and TVA. This additional funding is not incorporated in the budget tables that follow, but significant changes are noted in the text under Key Policy Issues.

Most Recent Developments

The President submitted his budget for FY1999 on February 2, 1998. In it was $21.7 billion for energy and water development programs. The request was larger than the FY1998 appropriation of $21.2 billion. The Senate Appropriations Committee reported out its funding levels for energy and water programs on June 5, 1998 (S. 2138, S.Rept. 105-206). The committee approved funding of nearly $21.4 billion for FY1999. The House Appropriations Committee reported its version on June 16, 1998 (H.R. 4060, H.Rept. 105-581); it would fund energy and water programs at $21.1 billion for FY1999. The figures above do not include scorekeeping adjustments. The Senate approved S. 2138 for $21.4 billion on June 18,1998 by a vote of 98-1. A floor amendment added $70 million to the solar and renewable energy program and offset the increase by reductions in other non- defense energy programs. The House approved its version of the bill (H.R. 4060) by a vote of 405-4 on June 22, 1998 for $21.1 billion. The conference agreement, for $21.2 billion, was reported out (H.Rept. 105-749) on September 25, 1998, approved by the House on September 28, 1998, and approved by the Senate one day later, September 29, 1998. The President signed the bill (P.L. 105-245) October 7, 1998.

The FY1999 Omnibus Appropriations Act (P.L. 105-277) added money to several programs funded in the Energy and Water Appropriations bill, including the Corps of Engineers, DOE's renewable energy program and its defense activities program, and TVA. This additional funding is not incorporated in the budget tables that follow, but significant changes are noted in the text under Key Policy Issues.

Status

Table 1. Status of Energy and Water Appropriations, FY1999

Table 2. Energy and Water Development Appropriations, FY1992 to FY1999
(budget authority in billions of current dollars)^*

*These figures represent current dollars, exclude permanent budget authorities, and reflect rescissions.

This table includes FY1999 budget request figures and budget totals for appropriations enacted for FY1992 to FY1998. The tables for Titles I, II and III provide budget details for FY1997 - FY1999.

Title I: Corps of Engineers

Table 3. Energy and Water Development Appropriations Title I: Corps of Engineers
(in millions of dollars)

Key Policy Issues

Funding for the Corps of Engineers civil programs is often a contentious issue between the Administration and the Congress, with appropriations typically ending up significantly higher than the amount requested. For FY1998, for example, the Congress added $270 million (7%) to the $3.63 billion requested by the Administration.

The FY1999 request of $3.22 billion is more than $800 million less than the amount appropriated last year. Most of that reduction is in the Corps' construction budget, which was cut almost in half compared with FY1998 appropriations. As a result, construction funding has been a major issue in the Corps' appropriation legislation for FY1999. For example, both the House and Senate appropriations Committees described the Administration's request for a limited construction budget as "irresponsible" (H.Rept. 105-581, H.R. 4060; and S.Rept. 105-206, S. 2138).

The House-Senate conference agreement included a total of $3.86 billion for the Corps for FY1999, $638 million more than requested. The conference committee recommendation was $106 million less than recommended by the House and $72 million more than recommended by the Senate. The recommended construction budget was $1.43 billion -- nearly double what was requested by the Administration.

The House originally supported a substantial decrease in funding for Columbia River fish mitigation activities on the grounds that previous efforts have shown "no clear evidence" of success. The Administration had requested $117 million for FY1999. The House recommended $7.8 million, limiting expenditures to the completion of the John Day drawdown study and the lower Snake River feasibility study; the Senate recommended $95 million. The conference committee has recommended $60 million for Columbia River fish mitigation. Funds are to be used for phase I of the John Day Reservoir drawdown study, and continuation of the Snake River feasibility study and ongoing construction.

The conference agreement also included $5 million for construction of an emergency outlet from Devils Lake, North Dakota; however, it deletes Senate language describing the appropriation as an emergency requirement. The Senate had recommended up to $8 million for the project.

The FY1999 Omnibus Appropriations Act (P.L. 105-277) added funding to a number of Corps projects, including an additional $35 million for Columbia River fish mitigation. It also added a prohibition on the use of any funds to study or implement a plan to drain Lake Powell or decommission the Glen Canyon Dam.

Title II: Department of the Interior

Table 4. Energy and Water Development Appropriations Title II:
Central Utah Project Completion Account
(in millions of dollars)

* Includes funds available for Utah Reclamation Mitigation and Conservation Commission activities and $5 million for the contribution authorized by §402(b)(2) of the Central Utah Project Completion Act (P.L. 102-675).

Table 5. Energy and Water Development Appropriations Title II: Bureau of Reclamation
(in millions of dollars)

* Does not reflect appropriations derived from transfer of $25.8 million from the Working Capital Fund.

** The Office of Management and Budget and the Congressional Budget Office disagree as to whether there is an offset for this fund.

Background

Most of the large dams and water diversion structures in the West were built by, or with the assistance of, the Bureau of Reclamation (Bureau). Where the Corps has built hundreds of flood control and navigation projects, the Bureau's mission was to develop water supplies and to reclaim arid lands in the West, primarily for irrigation. Today, the Bureau manages more than 600 dams in 17 western states, providing water to approximately 10 million acres of farmland and 31 million people.

The Bureau has undergone many changes in the last 15 years, turning from largely a dam construction agency to a self-described water resource management agency. The agency describes the "intent" of its programs and projects as follows:

• to operate and maintain all facilities in a safe, efficient, economical, and reliable manner;
• to sustain the health and integrity of ecosystems while addressing the water demands of a growing west; and
• to assist states, tribal governments, and local communities in solving contemporary and future water and related resource problems in an environmentally, socially, and fiscally sound manner.

In practice, however, the agency is somewhat limited in how it can address new demands and new priorities because of numerous statutes, compacts, and existing contracts, which together govern the delivery of water to project users. Consequently, any proposal to change Bureau water allocation or water management policies often becomes difficult to implement and extremely controversial.

Key Policy Issues

The Administration requested an appropriation of $852 million for FY1999 (net current budget authority), approximately $13 million more than enacted for FY1998. The Administration has again requested $143.3 million for the California Bay-Delta Ecosystem Restoration program (CALFED). Although funding for the CALFED program has been requested within the Bureau's budget, the appropriation will be allocated among several federal agencies. It is expected that the majority of funding will go to the Bureau and the Corps.

The FY1999 request included no new money for the Animas-La Plata project, a controversial water supply project in southwestern Colorado. Rather, the proposed budget would allocate $3 million in existing appropriations authority for ongoing preconstruction work while changes to the project's construction authorization are under consideration.

The House-Senate conference agreement included $780.5 million in net current authority for the Bureau for FY1999 -- $71.5 million less than requested, and $58.7 million less than enacted for FY1998. The Senate had recommended an appropriation of $837.1 million; the House had recommended an appropriation of $762.8 million.

The conferees agreed upon $75 million for the CALFED program, which is $68.3 million less than requested. On a related matter, the conferees direct the Department of the Interior to provide as soon as possible an implementation plan for the Anadromous Fish Restoration Plan required under the Central Valley Project Improvement Act (CVPIA, P.L. 102-575, Title 34).

The conference agreement included $3 million for resource management and development for the Animas-La Plata project, the same amount as requested.

The Senate Appropriations Committee report took issue with several other items within the Bureau's budget, including: 1) recommending a reduction of $3.5 million in fish and wildlife coordination, mitigation, and native species activities associated with the Central Arizona Project; 2) directing the Department of the Interior to keep constant budget levels for the Grand Canyon Monitoring and Research Center to avoid unauthorized expansion of the program; 3) prohibiting the Bureau from using funds for evaluations of current practices, with an aim towards finding ways to manage competing demands for water; and 4) directing the agency to explore ways to consolidate ecosystem restoration activities carried out under the CVPIA.

The House Appropriations Committee report included language encouraging the Bureau to better coordinate ecosystem activities carried out through the CALFED program and under CVPIA. The House Committee also admonished the Bureau for its declining focus on water resources infrastructure and transformation to a "water resources management and protection" agency; however, it also notes that the West has largely been reclaimed and that "serious consideration is due the question of the Bureau's ... role in this fully developed region ...."

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