|
Printable Version
FY2008 Department of the Interior Appropriations (12-29-07)
Untitled Document
Geoscience-related agencies covered by the Interior and Related Agencies
appropriations include the U.S. Geological Survey, Department of Energy
oil and gas research programs, Bureau of Land Management, Minerals
Management Service, National Park Service, Smithsonian Institution,
and U.S. Forest Service. For more information about the geoscience
value of these agencies, click here.
For analysis of hearings held by Congress on Department of Interior
appropriations, click here.
|
Fiscal Year (FY)
2008 Department of Interior Appropriations Process
|
|
Account
|
FY07 Enacted
($million)
|
|
|
|
|
|
U.S. Geological Survey (total)
|
|
|
|
|
|
|
Geological Programs
|
|
|
|
|
|
|
-- Earthquake Hazards
|
|
|
|
|
|
|
-- Volcano Hazards
|
|
|
|
|
|
|
-- Landslide Hazards
|
|
|
|
|
|
|
-- Global Seismographic Network
|
|
|
|
|
|
|
-- Geomagnetism
|
|
|
|
|
|
|
-- Earth Surface Dynamics
|
|
|
|
|
|
|
-- National Cooperative Geologic Mapping
|
|
|
|
|
|
|
-- Coastal and Marine Geology
|
|
|
|
|
|
|
-- Mineral Resource Assessments
|
|
|
|
|
|
|
-- Energy Resource Assessments
|
|
|
|
|
|
|
Mapping Progams
|
|
|
|
|
|
|
Water Resources Programs
|
|
|
|
|
|
|
Biological Resources Programs
|
|
|
|
|
|
|
Enterprise Information
|
|
|
|
|
|
|
Facilities
|
|
|
|
|
|
|
Science Support
|
|
|
|
|
|
|
Bureau of Land Management (total)
|
|
|
|
|
|
|
Energy and Minerals Management
|
|
|
|
|
|
|
Minerals Management Service (total)
|
|
|
|
|
|
|
Outer Continental Shelf Resource Evaluation
|
|
|
|
|
|
|
National Park Service (total for park system)
|
|
|
|
|
|
|
NPS Resource Stewardship
|
|
|
|
|
|
|
Smithsonian Institution (total)
|
|
|
|
|
|
|
U.S. Forest Service (total)
|
|
|
|
|
|
Minerals and Geology Management
|
|
|
|
|
|
|
Geoscience
Value of Agencies within the Department of the Interior Appropriations
bill
|
Created by an act of Congress in 1879, the U.S.
Geological Survey (USGS) has evolved over the years, matching
its talent and knowledge to the progress of science and technology.
According to their website, the USGS serves the Nation as an independent
fact-finding agency that collects, monitors, analyzes, and provides
scientific understanding about natural resource conditions, issues,
and problems. The value of the USGS to the Nation rests on its ability
to carry out studies on a national scale and to sustain long-term
monitoring and assessment of natural resources. Because it has no
regulatory or management mandate, the USGS provides impartial science
that serves the needs of our changing world. The diversity of scientific
expertise enables the USGS to carry out large-scale, multi-disciplinary
investigations that build the base of knowledge about the Earth. In
turn, decision makers at all levels of government--and citizens in
all walks of life--have the information tools they need to address
pressing societal issues.
The Bureau of Land Management
(BLM) is responsible for managing 262 million acres of land--about
one-eighth of the land in the United States--and about 300 million
additional acres of subsurface mineral resources. The Bureau is also
responsible for wildfire management and suppression on 388 million
acres. Practices such as revegetation, protective fencing, and water
development are designed to conserve, enhance, and develop public
land, soil, and watershed resources. Keeping public lands protected
from fire on all Department of the Interior managed lands in Alaska,
and suppressing wildfires on the public lands in Alaska and the western
States is a high priority for BLM since they are dominated by extensive
grasslands, forests, high mountains, arctic tundra, and deserts. The
BLM manages a wide variety of resources and uses, including energy
and minerals; timber; forage; wild horse and burro populations; fish
and wildlife habitat; wilderness areas; archaeological, paleontological,
and historical sites; and other natural heritage values. The Bureau
also has an active program of soil and watershed management on 175
million acres in the lower 48 States and 86 million acres in Alaska.
The Minerals Management
Service (MMS) is the federal agency that manages the nation's
natural gas, oil and other mineral resources on the outer continental
shelf (OCS). The agency collects, accounts for and disburses more
than $5 billion per year in revenues from federal offshore mineral
leases and from onshore mineral leases on federal and Indian lands.
For FY 2005, the agency expects to collect and distribute about $9.5
billion from active Federal and Indian leases. There are two major
programs within MMS, Offshore
Minerals Management and Minerals
Revenue Management.
Established in 1916, the National
Park Service (NPS) has stewardship responsibilities for the protection
and preservation of the national park system. The system, consisting
of 388 separate and distinct units, is recognized globally as a leader
in park management and resource preservation. The national park system
represents much of the finest the Nation has to offer in terms of
scenery, historical and archeological relics, and cultural heritage.
Through its varied sites, the National Park Service attempts to explain
America's history, interpret its culture, preserve examples of its
natural ecosystems, and provide recreational and educational opportunities
for U.S. citizens and visitors from all over the world, according
to the NPS website.
The Smithsonian Institution is unique
in the Federal establishment. Established by the Congress in 1846
to carry out the trust included in James Smithson's will, it has been
engaged for over 150 years in the "increase and diffusion of
knowledge among men" in accordance with the donor's instructions.
With the expenditure of both private and Federal funds over the years,
it has grown into one of the world's great scientific, cultural, and
intellectual organizations. It operates magnificent museums, outstanding
art galleries, and important research centers. Its collections are
among the best in the world, attracting approximately 25,000,000 visitors
in 2002 to its museums, galleries, and zoological park, according
to the Smithsonian webiste. As custodian of the National Collections,
the Smithsonian is responsible for more than 140 million art objects,
natural history specimens, and artifacts. These collections are displayed
for the enjoyment and education of visitors and are available for
research by the staff of the Institution and by hundreds of visiting
students, scientists, and historians each year. Other significant
study efforts draw their data and results directly from terrestrial,
marine, and astrophysical observations at various Smithsonian installations.
Congress established the Forest Service
within the Department of Agriculture in 1905 to provide quality water
and timber for the Nations benefit. Their website indicates
that over the years, the public expanded the list of what they want
from national forests and grasslands. Congress responded by directing
the Forest Service to manage national forests for additional multiple
uses and benefits and for the sustained yield of renewable resources
such as water, forage, wildlife, wood, and recreation. Multiple use
means managing resources under the best combination of uses to benefit
the American people while ensuring the productivity of the land and
protecting the quality of the environment. National forests encompass
191 million acres (77.3 million hectares) of land, which is an area
equivalent to the size of Texas. The Forest Service is also the largest
forestry research organization in the world, and provides technical
and financial assistance to state and private forestry agencies. Gifford
Pinchot, the first Chief of the Forest Service, summed up the purpose
of the Forest Service"to provide the greatest amount of
good for the greatest amount of people in the long run."
|
President's
Request for FY 2008
|
The House of Representatives considers funding for the Environmental
Protection Agency within the Interior,
Environment, and Related Agencies Subcommittee of the House
Appropriations Committee. Chaired by Representative Dicks
(D-WA), other members include Representatives Moran
(D-VA), Hinchey (D-NY),
Olver (D-MA) Mollohan
(D-WV), Udall (D-NM), Chandler
(D-KY), Pastor (D-AZ), Obey
(D-WI), Tiahrt (R-KS), Peterson
(R-PA), Doolittle
(R-CA), Emerson (R-MO), Goode
(R-VA), and Lewis (R-CA).
The Senate considers funding for the Department of Interior in the
Interior and Related Agencies Subcommittee of the Senate
Appropriations Committee. Chaired by Senator Feinstein
(D-CA), other members include Senators Byrd
(D-WV), Leahy (D-VT),
Dorgan
(D-ND), Mikulski
(D-MD), Kohl (D-WI), Johnson
(D-SD), Reed (D-RI), Nelson
(D-NE), Craig (R-ID),
Stevens (R-AK),
Cochran (R-MS),
Dominici (R-NM),
Bennett (R-UT), Gregg (R-NH),
Allard
(R-CO), and Alexander (R-TN).
The omnibus for fiscal year 2008 included significant cuts to science and engineering compared to the House and Senate approved bills. The competitiveness initiatives of legislators and the Administration were unable to compete with other fiscal priorities and perhaps some partisanship at the end. Although President Bush has allowed past Republican-led congresses to send him budgets that were significantly over the Administration's total spending limit requests, this year he demanded that legislators meet his spending limits and would not compromise on any details. Congress attempted and failed to override the President's veto of a mini-omnibus and then spent a few days rapidly cutting the extra spending of about $22 billion across 11 appropriation bills.
The outcome is a squeeze on funding of geosciences research across the federal agencies. The National Science Foundation, one of the largest sources of basic geosciences research, will receive a disappointing 2.5 percent increase in total funding after being slated for a 10 percent increase in House and Senate proposals. The Geosciences Directorate will have to cut research support because less funding will be available overall, the Directorate faces significant rising costs for operation, maintenance and infrastructure and any small increases distributed to the Directorate will not keep pace with the cost of inflation, meaning a decrease in funding in real dollars.
The Department of Energy's Office of Science, where additional basic geosciences research is funded also received a last minute reduction of about $500 million compared to funding levels in the House and Senate proposals. Again the geosciences will see real cuts to basic research support, continuing a trend in the Office of Science of decreasing funding for geosciences.
On a more positive note, NASA's Earth science division, Department of Energy's Office of Fossil Energy and the U.S. Geological Survey will receive small, sustaining increases for geosciences research to keep a wide variety of programs and projects afloat. Over the longer term, these programs and projects will need real increases above the costs of inflation and basic operations and maintenance to ensure that these agencies meet their objectives.
The American Association for the Advancement of Science (AAAS) provides a useful summary of federal investments in research and development (R&D) on an annual basis. According to AAAS, total R&D would increase about 1.2 percent to $142.7 billion for fiscal year 2008 and would be the fourth straight year of decline in real terms in federal R&D. The omnibus bill contains $927 million in non-defense R&D earmarks in 2008, down from $1.5 billion in non-defense R&D earmarks in 2006. The Defense Department budget includes $77.8 billion for R&D and $3.5 billion is specified for earmarks.
Among the major agencies of interest to the geosciences, NASA would receive $12.5 billion for R&D (a 5.7 percent increase compared to fiscal year 2007), the Energy Department would receive $9.376 billion for R&D (a 7.4 percent increase), the National Science Foundation would receive $4.53 billion for R&D (a 1.1 percent increase), USGS would receive $583 million for R&D (a 3.4 percent increase), NOAA would receive $573 million for R&D (a 7.6 percent increase), NIST would receive $514 million (a 4.7 percent increase) and the Smithsonian would receive $175 million for R&D ( the same as their budget for 2007). These numbers from AAAS are focused solely on R&D funding within these agencies and do not consider expenditures that might indirectly affect R&D.
U.S. Geological Survey (USGS)
The USGS would receive $1.022 billion for fiscal year 2008, about a 3 percent increase over 2007. Of the total, $64 million was set aside for water resource investigations in cooperation with states and municipalities, $40 million was allocated to satellite operations and $8 million was allocated to maintenance and capital improvements. The join report also stipulated that no more than 50 percent of the costs of mapping or water resources will be shared with the states and municipalities.
The National Cooperative Geologic Mapping program would receive $1 million and the multi-hazard initiative would receive $3 million, Among programs slated for cuts in the President's request, Congress restored a $22 million requested cut for the Mineral Resources Program, giving it a total budget of about $50 million and provided $6.4 million for the Water Resources Research Institutes. Congress also provided the following increases above the President's request: An additional $2 million for earthquake hazards and the multi-hazard initiative, an additional $0.5 million for volcano hazards and the global seismographic network, an additional $1.5 million for the national streamflow information program and multi-hazard initiative and an additional $1 million for hydrologic networks related to the ocean action plan.
Congress also included $7.5 million for new climate change research at the survey and stated in their report: "The funds should be allocated for high priority research efforts, and up to $2,500,000 should be used by the Survey to establish the National Global Warming and Wildlife Science Center. The Survey is directed to notify the Committees on Appropriations of its allocation of global climate change research funds within 60 days of enactment."
Biological research would receive $143.5 million (a $5 million increase over 2007), while Enterprise Information would receive $112 million, Science Support would receive $68 million and Facilities would receive $101.5 million.
ADDENDUM: An across-the-board rescission of 1.56 percent will be applied to all of the programs at the USGS. The numbers given above do not reflect these reductions. (1/15/08)
For more details on federal R&D funding from AAAS, please visit their R&D Policy Web page.
For the full text of the omnibus and the related reports please visit Thomas and link to their extensive appropriations section.
Senate Appropriations Subcommittee on Interior,
Environment and Related Agencies
Fiscal 2008 Appropriations: Interior and Environment
March 20, 2007
Witness:
Dirk Kempthorne, Secretary of the Interior, Department of the Interior
Secretary of the Interior Dirk Kempthorne met with Senate appropriators
on March 20, 2007 to discuss the President's 2008 budget request for
the Department of the Interior (DOI). As the agency responsible for
managing one in every five acres in the US, the DOI's mandate is extensive,
covering everything from conservation and restoration to law enforcement,
fire fighting, and energy production. The President's budget request
for 2008 is $10.7 billion, $35.4 million below the 2007 Joint Resolution.
Like many other agencies, this decrease would mean reductions in funding
for many programs within DOI. Four major initiatives -- the National
Parks Centennial Initiative, the Healthy Lands Initiative, the Safe
Indian Communities Initiative, and the Improving Indian Education
Initiative - are the focus of the 2008 budget request.
Chairwoman Dianne Feinstein (D-CA) congratulated Kempthorne for his
work in "one of the most difficult and diverse jobs in Washington."
She commended DOI for ensuring that all $214 million in fixed costs
are provided for, but expressed concern about decreases elsewhere
in the budget, such as the 35 percent reduction to the construction
budget and the 58 percent reduction in funds for land acquisition.
Ranking Member Larry Craig (R-ID) also congratulated Kempthorne for
working successfully within a tight budget but expressed some reservations
about cuts, especially to the Payments in Lieu of Taxes (PILT) program,
which are federal payments to local governments that help offset losses
in property taxes due to nontaxable federal lands within their boundaries.
"The Office of Management and Budget (OMB) knows that's a program
Congress likes a lot," he said, noting with irony that OMB deliberately
cuts such programs knowing that Congress will put the money back into
the budget. "I've seen that happen a lot."
In his testimony, Kempthore discussed the four major initiatives.
One of the biggest challenges DOI faces is controlling the methamphetamine
crisis in Indian country and stemming the flow of drugs across the
border. Methamphetamine, said Kempthorne, is the "second small
pox epidemic." Indian communities have become hubs for meth trading
and "poison peddlers," which has resulted in an increase
in violent crime that is nearly twice the national average. The DOI
budget includes $16 million for the Safe Indian Communities initiative.
The DOI will also focus on resolving drug running issues on the US
border, 40 percent of which it has jurisdiction over. Drug running
has become a particularly serious issue in recent years as drug cartels
have found public lands to be a particularly convenient place for
trading, a development that has already resulted in the death of at
least one park ranger.
The National Parks Centennial Challenge, budgeted at $2.4 billion,
will enhance the nation's national parks as they approach their 100th
anniversary in 2016. The budget is the largest ever for park operations
and an increase of $219 million over the level funded in the 2007
Joint Resolution.
The Healthy Lands Initiative (HLI) will help provide increased access
for energy and other uses "while simultaneously preserving important
habitat corridors and sites for the benefit of species." Funded
at $22 million, HLI will consider land management at a regional level,
rather than the traditional parcel by parcel method. "We need
to ensure that energy development and world-class habitat are not
mutually exclusive," said Kempthorne.
"I think the Administration is quietly building up a conservation
and environmental records that is underappreciated," Senator
Lamar Alexander (R-TN) commented.
-EG

House
Appropriations Subcommittee on Interior, Environment and Related Agencies
Hearing on the Administration's FY 2008 Budget Proposal for USGS
March 9, 2007
Witness:
Mark Myers, Director, U.S. Geological Survey
The House Appropriations Subcommittee on Interior, Environment and
Related Agencies held an early morning hearing on March 9 to discuss
the President's 2008 budget request for the US Geological Survey (USGS).
As Chairman Norman Dicks (D-WA) pointed out, the Survey's research
and monitoring of biologic, geographic, geologic, and water resources
processes are "especially important" to our understanding
of Earth. As such, he continued, he would "like to know why the
Administration again wants to cut funding" to programs like the
Minerals Resources Program when "Congress has repeatedly expressed
interest in this program."
Not surprising, the majority of the hearing focused on the Survey's
involvement in climate change research and Earth observation. "Climate
change," Myers commented, "is like a huge ship" in
that it will take decades for us to notice the impact of any emissions
reduction measures. However, having integrated in-situ and remote
sensing networks such as Landsat in place ensures a continuous, repeated
stream of data that helps the USGS and other agencies identify changes
and develop models with refined prediction capabilities. The USGS
budget contains $24 million for the Landsat Data Continuity Mission's
Landsat 8, the next-generation Landsat mission that is scheduled to
be launched in 2011.
Asking a seemingly offbeat question, Rep. James Moran (D-VA) asked
how often the insurance industry consults with the USGS. In response,
Dr. Meyers noted that the USGS is consulted regularly by insurance
companies for natural hazards information, particularly about flooding.
"Well, it seems to me that private industry would be well served
by discussing cuts with Administration," commented Mr. Moran,
suggesting that pressure from outside interests, such as the insurance
industry, would prompt more support for the USGS by the Administration.
Cuts to the recently authorized Water Resources Institute were also
met with disbelief. Myers explained that, although the WRI is "a
very good program" the decision to cut the program is "a
matter of balancing a tight budget." "That's nonsense,"
Mr. Moran responded with disgust. "We don't have a tight budget,
we just have misguided priorities." In a similar vein, he pointed
out that the money it takes to put a single plane in flight in Iraq
costs as much as the USGS's endocrine disruptor research. Water that
produces intersex fish and alligators is one thing, he said, "but
what if kids drink that water?"
Calling Myer's budget of compromise "an inadequate excuse,"
Moran apologized for the USGS not having "the resources it should
be getting."
Mr. Moran's outspoken disgust for the budget was shared by majority
of the committee. Rep. Tom Udall (D-NM) voiced concern about the Survey's
Water Resources Division being able to meet the demand for water data
under the President's budget. The Cooperative Water Program, for example
is slated for a $2 million cut, a move Udall called "short-sighted."
However, support for the National Streamflow Information Program remains
strong. The budget includes an increase of $1.4 million for the program,
which provides real-time streamflow and water quality data for rivers
and streams across the nation.
Employee "attrition," as Rep. Jo Ann Emerson (R-MO) put
it, is also a concern for the USGS. In an effort to reduce costs,
the government has been offering federal employees early retirement
packages. Over the past several years, federal agencies including
USGS have lost thousands of employees to "early out" options.
Dr. Myers admitted to being "worried about losing high-quality
people," but said that he is "hopeful" about the situation.
The committee was less hopeful. "I'm very much opposed to the
way the Administration is reducing support for domestic programs all
across the board," commented Rep. Maurice Hinchey (D-NY).
-EG

House
Natural Resources Subcommittee on Water and Power
Hearing on the Administration's
FY 2008 Budget Proposal for the Bureau of Reclamation and USGS
March 8, 2007
Witnesses:
Robert Johnson, Commissioner, Bureau of Reclamation, Washington, D.C.
Dr. Robert Hirsch, Associate Director for Water, Water Resources Division
of the United States Geological Survey, Reston, VA
Steven J. Wright, Administrator, Bonneville Power Administration,
Portland, OR
Timothy J. Meeks, Administrator, Western Area Power Administration,
Lakewood, CO
Jon Worthington, Administrator, Southeastern Power Administration,
Elberton, GA
Michael A. Deihl, Administrator, Southwestern Power Administration,
Tulsa, OK
Congress cast a critical eye over the President's proposed 2008 budget
once again on Thursday, March 8. This time, the future of America's
water resources was examined by the House Natural Resources Subcommittee
on Water and Power. Characteristically brisk, Chairwoman Grace Napolitano
(D-CA) greeted the witnesses and promptly asked Commissioner Johnson
why funding for the Title 16 water recycling program had received
such a significant cut. "You haven't even asked for enough money
to keep the program on life support - it is a death sentence,"
she said.
Like many non-defense agencies, the Bureau of Reclamation (BR) is
slated for a budget reduction in 2008. The FY08 request for Water
and Related Resources is $816.2 million, a $17.2 million decrease
from the FY07 requested level. Programs such as the California Bay-Delta
Program (CALFED), Water 2025, and activities on the Lower Colorado
River, Middle Rio Grande, Animas-La Plata, and the Columbia and Snake
Rivers will suffer cuts under the proposed budget but remain among
the BR's top priorities, Commissioner Johnson assured the committee.
The Title 16 water recycling program, however, is set to receive less
than 1% of the budget. When asked why the BR opposes the program,
Johnson could only say that water recycling poses plenty of opportunity
for local communities and that it "provides a drought-proof water
supply."
Proposed funding for Water 2025, however, is $11 million. A "high
priority" for the Secretary of the Interior, the goal of Water
2025 is to prevent crises and conflict over water in the West by "increasing
certainty and flexibility in water supplies." Funding for Water
2025 has not yet been formally authorized by Congress, however, raising
questions about whether the BR can justify the program "when
there is a huge backlog of authorized projects." In response,
Johnson noted that Congress has funded the program in the past and
that it has produced good results. "It's a matter of finding
the right balance," he said.
The USGS is also searching for the right balance amidst budget cuts.
The Presidential request for the Survey proposes $212 million to continue
its water resources work "in areas of national importance."
The budget includes a decrease of $6.4 million to eliminate funding
for the Water Resources Research Act Program, a decrease in the Cooperative
Water Program, and an increase of $4.2 million in the National Streamflow
Information Program.
While cuts to programs that monitor water quantity, the committee
was also concerned about water quality. Napolitano asked about groundwater
recharge and whether the USGS is working to ensure that pharmaceuticals
and other harmful substances are sufficiently filtered out. In response,
Dr. Hirsch noted that the USGS's research focuses on understanding
the physical, chemical, and biological issues surrounding groundwater
storage, including the neutralization of harmful bacteria and pharmaceuticals.
He commented that the future water demands will be met by a combination
of above- and below-ground water storage and that hundreds of organizations
across the nation are working together to address water availability
concerns.
As the hearing came to a close, the committee asked about the impact
of early leave programs on workforce expertise. In an effort to cut
expenses, many federal agencies have been offering employees early
retirement packages. Concerned that the loss of so many experienced
employees will negatively impact the quality of science, Chairwoman
Napolitano asked Commissioner Johnson how the Bureau is working to
"ensure that there is depth in the organization." Referring
to the Bureau's Managing for Excellence program, Johnson replied "I
can assure you that, on my watch, we are not going to lose Reclamation's
expertise."
-EG

House
Subcommittee on Energy and Mineral Resources,
Hearing on the Administration's
FY 2008 Budget Requests for the MMS, BLM, Energy and Minerals programs,
OSM, Minerals Geology Program of the Forest Service, and USGS
February 26, 2007
Witnesses:
Johnnie Burton, Director, MMS
Jim Hughes, Acting Director, BLM
Mark Myers, Director, USGS
Brent Wahlquist, Acting Director, OSM
Fredrick Norbury, Associate Deputy Chief, National Forest System,
U.S. Forest Service
The House Subcommittee on Energy and Mineral Resources convened Tuesday
afternoon to discuss the FY 2008 budget requests for the Minerals
Management Service (MMS), the Bureau of Land Management (BLM), the
Office of Surface Mining Reclamation and Enforcement (OSM), the U.S.
Geological Survey (USGS), and the U.S. Forest Service (USFS). Energy
and non-energy mineral commodities constitute the nation's second
highest source of revenue, generating approximately $10 billion annually.
According to Mr. Hughes' testimony, "in 2008, public lands will
generate an estimated $4.5 billion in revenues, mostly from energy
development." The MMS manages oil and natural gas production
activities that generate over $7 billion in revenue per year for the
Nation, States, and American Indians, and minerals production on Forest
Service land typically exceeds $2 billion per year, about $125 million
of which fills federal coffers.
In his opening statement, Chairman Jim Costa (D-CA) stressed the
subcommittee's oversight responsibilities, promising to "ensure
accountability and transparency." He noted that "hardrock
mining law has not changed since 1872" and that it is sorely
in need of revision. However, the three representatives who attended
the hearing were primarily concerned with whether the President's
FY 2008 budget requests would be sufficient to meet the needs of the
testifying agencies and how the funds would be used. They also asked
about cuts in funding to certain programs, such as geothermal energy
initiatives.
As one of the most lucrative federal agencies, a tight 2008 budget
poses less of a concern for MMS than for the other testifying agencies.
The 2008 request for direct appropriations is $161.5 million, $3.2
million above the FY 2007 continuing resolution level. The request
includes funding to implement the Outer Continental Shelf (OCS) 5-Year
Oil and Gas Leasing Program, facilitate the exploration and development
of ultra-deepwater oil and gas reserves, enhance the management of
mineral revenues, and fulfill the President's plan to double the Nation's
Strategic Petroleum Reserve.
However, concerns about MMS were less about budget woes than about
the agency's audit system and ensuring a resolution to the 1998/1999
outer continental shelf (OCS) leasing debacle. Leases made during
these years omit essential price threshold language that triggers
royalty payments to the federal government, a mistake that has already
resulted in a revenue loss of about $1 billion for the federal government.
When asked, Ms. Burton recommended "enticing [the oil companies]
with sugar to come to the table and re-negotiate the leases."
Also in question was the MMS's auditing system, which has decreased
the number of audits by 22 percent and the number of auditors by 15
percent since 2000. In place of audits, MMS conducts so-called compliance
reviews, which "ensure that people pay what they need to pay,"
said Ms. Burton. MMS has attempted to make the rules and regulations
for compliance reviews clearer, making it easier for industry "to
get it right." Compliance reviews also have a higher payoff:
for every dollar MMS spends on a compliance review, it gets $3.27
in return. An audit, in contrast, only produces slightly over $2 in
return.
The Office of Surface Mining Reclamation and Enforcement (OSM), which
deals "with coal and only coal" and associated reclamation
efforts, is also slated to enjoy a budget increase in the President's
budget request. OSM's FY 2008 budget request totals $168.3 million
in discretionary spending. Because State and Tribal grant funding
is no longer subject to appropriation, the net increase over FY 2007
levels is $9.2 million. A full fifty percent of OSM's budget is passed
on to the States and Tribes in the form of regulatory and reclamation
grants, as well as watershed cooperative agreements and high priority
project funding. The remaining portion of the budget provides funding
for OSM's internal operations, which will include the implementation
of a new financial system in 2008.
The FY 2008 President's budget request for BLM is $1.812 billion
for major appropriations, which includes a $3.1 million increase to
support oil and gas inspections and monitoring on BLM land. Among
the projects planned for 2008 are the implementation of the Remote
Data Acquisition for Well Production (RDAWP) Project and the Automated
Fluid Minerals Support System, both of which will help streamline
the collection and inspection of wellhead production data. Programs
such as geothermal, however, are slated for budget cuts. When asked
why, Hughes could only cite revenue concerns. Representative Louie
Gohmert (R-TX) repeatedly asked Hughes if he had "a problem with
the host counties getting 25 percent [of geothermal revenues] back."
Hughes refrained from answering directly, but implied that the federal
government would rather see a direct return for its investment. Chairman
Costa asked whether the renewable energy technologies being developed
on BLM lands are ever likely to do anything more than supplement the
energy grid. Hughes replied with a firm "no," but noted
that BLM operations currently power over a million homes and will
soon have the capacity to power a million more with wind and solar
technologies.
The fiscal year 2008 President's Budget requests $71 million for
the Minerals and Geology Management program, a decrease from prior
year levels that "reflects greater efficiencies." The Minerals
and Geology Management program is responsible for the management of
energy and non-energy mineral commodities, which generate over $2
billion a year. The program also oversees the restoration of hazardous
waste sites located on Forest Service lands. According to Mr. Norbury's
testimony, there are an estimated "2,000 abandoned and inactive
mines on National Forest System lands requiring some type of cleanup."
The US Geological Survey also faces a number of budget challenges
in the coming year, among them a $24 million decrease for the Minerals
Resources Program. The President's FY 2007 budget request cut the
Minerals Resources Program by $22 million. In preparing the FY 2008
request before the FY 2007 budget was completed in Congress, the administration
used the FY 2007 request. Congress did not agree with the President's
FY 2007 request however and in the final continuing resolution for
FY 2007, Congress put back the $22 million in the Minerals Resources
Program. This means that the President's FY2008 request is actually
an even larger decrease for minerals. Although the program conducts
a wide range of basic and applied research in national and international
mineral assessments, the budget will "focus efforts in minerals
resource assessments and research on projects that support the needs
of Federal land management programs." In total, the USGS will
absorb about $35 million in reductions to "lower priority programs."
However, the budget provides funding for high-profile programs such
as the Ocean Action Plan, the Natural Hazards Initiative, and the
National Streamflow Information Program. Much to the relief of the
committee, the Landsat Data Continuity Mission (LDCM) will also receive
increased funding. "Geospatial is one of our highest priorities,"
said Chairman Costa.
-EG
Sources: Department of Interior budget documents; USGS budget
documents; National Park Service budget documents; U.S. Forest Service
budget documents; White House Office of Management and Budget; CQ
Budget Tracker; Library of Congress Congressional Record website;
hearing testimony.
Please send any comments or requests for information to the AGI Government
Affairs Program at govt@agiweb.org.
Contributed by Linda Rowan, AGI Government Affairs Staff,
and Erin Gleeson, AGI/AAPG Spring 2007 Intern.
Last update March 29, 2007.
|