    [Budget of the U.S. Government]
    [V. Creating Opportunity, Demanding Responsibility, and Strengthening Community]
    [3. Protecting the Environment]
    [From the U.S. Government Publishing Office, www.gpo.gov]

                         3.  PROTECTING THE ENVIRONMENT

      ----------------------------------------------------------------------

      None of our children should have to live near a toxic waste dump or eat food poisoned by pesticides. Our
    grandchildren should not have to live in a world stripped of its natural beauty. We can and we must protect the
    environment while advancing the prosperity of the American people and people throughout the world.

                                          President Clinton
                                          April 22, 1996

      ----------------------------------------------------------------------
       The President believes that the Nation does not have to choose
    between a strong economy and a clean environment. In fact, while the
    President's policies have contributed greatly to four years of strong
    economic growth with low inflation, they also have produced a cleaner,
    healthier environment.
       The Administration has helped ensure that the air is cleaner for tens
    of millions of people. It has protected Yellowstone, one of our national
    treasures and our first national park, from the ravages of nearby
    mining. It also has cleaned up more toxic waste sites in its first three
    years than the previous two administrations did in 12 years. Meanwhile,
    American industry has continued reducing toxic emissions, which have
    fallen 43 percent in the last decade.
       While Americans want a Government that helps protect the environment
    and our natural resources, they do not want to burden business unduly,
    choke innovation, or waste taxpayer dollars. The Administration has
    reinvented the regulatory process, cutting excessive regulation and
    targeting investments in programs that will have the biggest impact on
    improving the environment, protecting public health, providing more
    opportunities for outdoor recreation, and enhancing natural resources.
    The President's strategy for environmental protection is reflected in
    not just the creative approaches the Administration is pursuing, but in
    the priorities that the budget proposes to fund.

    New Approaches for Environmental Success

       Working with Congress on a bipartisan basis whenever possible, the
    Administration has pioneered ways to protect the environment that are
    cleaner, cheaper, and smarter, while preserving natural resources for
    current and future generations.

       Reinventing Drinking Water Legislation: In August 1996, the President
    signed the Safe Drinking Water Act Amendments, fulfilling the goals he
    outlined in 1993--to reinvent the Nation's safe drinking water
    legislation to better protect public health, and to authorize the
    creation of new Drinking Water State Revolving Funds (SRFs) to help
    hundreds of communities protect their citizens from harmful
    contaminants.
       In several respects, the new law is a model for regulatory reform. It
    gives the Environmental Protection Agency (EPA) more flexibility to act
    on contaminants of greatest risk, and to analyze costs and benefits
    while maintaining public health as the paramount concern. It institutes
    a cost-effective, community-based approach for ensuring safe drinking
    water. Further, it affirms the right of all Americans to know the
    quality of their drinking water and the potential threats to its safety,
    and it authorizes resources to address Federal mandates under the law.

       Reforming Food Quality Protection: Also in August, based on his
    proposal of 1993, the President signed legislation to revolutionize

    [[Page 68]]

    the way our food supply is protected from harmful pesticides. The law
    overhauls the system that kept harmful pesticides on the market too long
    and safer alternatives off the market, and it will ensure that families
    have the safest possible food on the dinner table. Specifically, the law
    replaces conflicting and outdated pesticide residue standards with a
    single, health-based standard for all food. It provides incentives for
    swift approval of safe, new pesticide alternatives for farmers. And, it
    includes provisions to better protect children from pesticide risks.
       ``Greening'' America's Farm Programs: The 1996 Farm Bill, which the
    President signed in April 1996, was the most conservation-oriented farm
    legislation ever enacted. It created five new mandatory conservation
    programs, including the Environmental Quality Incentives Program (EQIP)
    that consolidates four cost-sharing conservation programs into one and
    focuses cost-sharing and technical assistance on locally-identified
    conservation priority areas, and to areas where agricultural and natural
    resource management improvements will help meet water quality goals. The
    law provides $200 million in 1998 ($1.3 billion from 1996 to 2002) for
    EQIP, dedicating half of the funds to conservation associated with
    smaller livestock operations. It also authorizes the Wildlife Habitat
    Incentives Program to help landowners improve wildlife habitat on
    private lands.
       Enhancing the National Park System: Although the budget provides
    higher funding for parks, available resources can barely keep up with
    the system's new responsibilities and with ongoing needs to maintain an
    aging infrastructure. Consequently, the National Park Service is using
    creative new approaches to manage the parks, enabling it to protect our
    natural and cultural treasures with limited resources.
       The 1996 Omnibus Parks and Public Lands Management Act includes
    several examples of these creative approaches. It will, for instance,
    establish the Tallgrass Prairie National Preserve in Kansas as a
    partnership with a private group that owns most of the land--at far less
    cost than establishing a traditional park. Also, at the Presidio in San
    Francisco, a government corporation will be able to lease and manage
    hundreds of unused buildings in a manner consistent with park purposes,
    but which reduces the burden on taxpayers. In addition, the budget
    supports other partnership arrangements by including funds, matched by
    non-Federal sources, to implement newly authorized non-Federal heritage
    areas and to restore historic structures at historically black colleges
    and universities.

       Creating a New National Monument: The budget provides funds for
    start-up activities at the Grand Staircase-Escalante National Monument,
    which the President created by proclamation in September 1996, in the
    pristine canyonlands of south-central Utah. The National Monument
    encompasses 1.7 million acres of public lands and will preserve for
    future generations hundreds of millions of years of geologic and
    cultural history. Over the next three years, the Bureau of Land
    Management will consult with State, local, and Tribal governments; the
    private sector; the public; and other Federal agencies in preparing a
    land use management plan for the Monument.
       Reinventing Regulation: In March 1995, the President announced a
    comprehensive program to improve the regulatory system and move toward a
    better environmental management system for the 21st Century. One
    prominent element is Project XL (for Excellence and Leadership), which
    fulfills the President's challenge to EPA and industry to make it easier
    for businesses to better protect the environment. This national pilot
    program enables a limited number of regulated entities to adopt
    alternative strategies to current regulations, as long as they produce
    superior environmental results.
       For example, Intel's new computer chip manufacturing plant in
    Chandler, Arizona--which recently signed a Project XL agreement with
    EPA--will adopt a five-year Environmental Management Plan that outlines
    specific steps to meet tough standards of superior environmental
    performance. The agreement will eliminate the red tape of the normal
    permit modification process, enabling Intel to quickly change its
    manufacturing operations and, in turn, better compete in its fast-paced
    industry.

    [[Page 69]]

       Establishing Performance Partnerships: In April 1996, Congress
    enacted the President's proposal for EPA Performance Partnership Grants,
    allowing States or Tribes to combine several categorical grants--each of
    which addresses only air, water, hazardous waste, or similar programs--
    into a multimedia environmental grant. Twenty States used this approach
    in 1996, and 24 States have expressed interest for 1997. As more States
    recognize the benefits, we expect most, if not all, to participate. The
    grants build on the National Environmental Performance Partnership
    System, which EPA established with the States in 1995 to give them more
    leeway to achieve environmental results and emphasize less-intensive EPA
    oversight for States that show strong performance. Six States
    participated in 1996 and 28 more have expressed interest for 1997.
       Restoring the Everglades: The budget supports the continued Federal,
    State, local, and Tribal efforts to implement the restoration project
    for the South Florida ecosystem, which the Administration began in 1993
    and which Congress authorized in the 1996 Water Resources Development
    Act. During 1999, the Army Corps of Engineers will complete the Central
    and Southern Florida Comprehensive Review Study, providing long-term
    direction for restoration efforts.
       Along with improved water management, the budget recognizes the need
    for more science and for land acquisition to restore the Everglades'
    hydrologic functions. The Administration is re-proposing a four-year,
    $100 million-a-year Everglades Restoration Fund to provide a steady
    source of funding, mainly for land acquisition. It is also re-proposing
    a one-cent per pound assessment on Florida-produced sugar to help
    finance the Fund. The budget proposes $331 million, 163 percent more
    than Congress approved in 1997.

       Making the Endangered Species Act Work: The Endangered Species Act
    (ESA) gives Federal, State, and local governments, and the private
    sector the flexibility to protect endangered species and conserve
    habitat, while allowing for development, by establishing Habitat
    Conservation Plans (HCPs). From 1983 to 1992, such parties created only
    14 HCPs. But the Administration recognized that, to reduce conflict
    between the needs of conservation and development, it should more fully
    utilize HCPs. As a result, from 1993 to 1997, the number of HCPs issued
    or under development soared to 300--covering 8.4 million acres in the
    Pacific Northwest alone.
       Creating Sustainable Fisheries: Last October, the President signed
    the Sustainable Fisheries Act, reinventing the way the Nation addresses
    the problems facing its commercial and recreational fisheries. The Act
    brings the Nation closer to achieving the vast long-term benefits of
    sustainable fisheries with new measures to prevent overfishing and to
    ensure that already depressed stocks are rebuilt to levels that produce
    maximum sustainable yields. The Act also establishes a new national
    standard to minimize the unintentional catch of non-target fish, and
    highlights the long-term importance of habitat to fish stocks by
    requiring fishery management plans to identify essential fish habitat.
       Protecting the Northwest Forests: The President's Forest Plan--a
    balanced, science-based blueprint--is protecting natural resources and
    providing new economic opportunities in the Pacific Northwest. It
    represents the first region-wide application of ecosystem management on
    the part of Federal, State, and local agencies; Tribes; non-governmental
    organizations; and individuals. The Administration is offering
    sustainable volumes of timber sales, restoring thousands of acres of key
    habitat and watersheds, providing training and short-term jobs to
    displaced timber workers, spurring small business through grants and job
    training, and strengthening local economies. The Federal Government
    plans to spend $369 million in the region in 1997 through the
    coordinated efforts of 12 Federal agencies, and the budget proposes to
    increase this level of support to $408 million in 1998.
       The recent expiration of the July 1995 timber ``rider'' to a 1995
    spending bill restores public participation in the salvage timber
    program. As the timber program again faces the full range of
    environmental laws, the Administration will address the concerns that
    its 1996 Interagency Salvage Review Report identified. The budget
    modifies the use of the Forest Service Salvage Sale Fund, establishes a
    new Forest Ecosystem Management Fund, and provides more funding for
    wildlife

    [[Page 70]]

    and fish management (especially sensitive species), watershed improvements, and monitoring.

       Saving Yellowstone Park: To protect Yellowstone, the Federal
    Government last August agreed to exchange Federal land or other assets
    for Crown Butte, Inc.'s interest in the New World Mine. The development
    of the gold mine posed a severe environmental threat to Yellowstone's
    unique landscape and wildlife resources. The agreement protected Crown
    Butte's property rights while preserving one of the crown jewels of the
    National Park System. Following the exchange with the Federal
    Government, Crown Butte will dedicate $22 million to clean up
    contamination at the site from earlier mining activities. The
    Administration is working to identify appropriate assets to execute the
    agreement, and to appraise their value in order to ensure a fair
    exchange.
      Protecting Headwaters Forest: The Federal Government and California
    agreed in September 1996 to negotiate an exchange of land and other
    assets with a private company, enabling them to jointly acquire 7,500
    acres, including the Headwaters Grove in northern California--the
    largest privately-owned grove of old-growth redwoods--to protect it from
    timber harvesting. The negotiations involve complex issues, including
    asset appraisals and the development of Habitat Conservation Plans for
    endangered species. The Administration believes that all parties are
    working in good faith to negotiate a fair and equitable exchange, and is
    fully committed to taking all necessary steps to reach a successful
    conclusion.
       Providing a Fair Return for Taxpayers: The Administration proposes a
    five-percent royalty fee on the ``net smelter return'' from producing
    hardrock minerals on Federal lands. The royalties would go into a new
    reclamation fund to finance the restoration of abandoned mine sites on
    Federal lands. The budget also proposes to eliminate the percentage
    depletion tax allowance for non-fuel mineral rights acquired from the
    Federal Government for only nominal cost under the 1872 Mining Act. In
    addition, the budget would continue the moratorium on patenting hardrock
    mineral rights on Federal lands.

    Environmental and Natural Resource Investments

       The budget proposes to boost funding for high-priority environmental
    and natural resources programs to levels that would be 17 percent over
    those in place when the President took office (see Table 3-1).

       Kalamazoo Initiative: The President announced a new national
    commitment last August to protect communities from toxic pollution by
    the year 2000, and the budget provides almost $800 million in 1998 to
    help carry it out. The key components are:
       Accelerating Superfund Cleanups: The budget proposes $2.1
              billion for Superfund, including a $650 million increase over
              1997 to begin meeting the President's pledge to nearly double
              the pace of Superfund cleanups (see Chart 3-1). The
              Administration proposes to clean up another 500 sites in the
              next four years, meaning that about two-thirds of the Nation's
              worst toxic waste dumps would be cleaned up by the year 2000.
              To ensure available funding, the budget proposes to extend the
              Superfund taxes that have expired. The budget also funds the
              ``orphan share'' cleanup costs, which are attributable to
              insolvent parties.
       Expanding Brownfields Redevelopment Initiative: The budget
              proposes a major expansion of the President's brownfields
              initiative, which promotes local cleanup and redevelopment, by
              providing a $75 million increase. First, the budget proposes
              that EPA receive a $50 million increase, to nearly $88
              million, to expand grants to communities for site assessment
              and redevelopment planning, and to support revolving loan
              funds to finance brownfield cleanup efforts of contaminated
              and abandoned urban properties at the local level. Second, the
              budget proposes $25 million in Department of Housing and Urban
              Development funding to leverage State, local, and private
              funds to redevelop the cleaned-up sites and create jobs. Also,
              the President again proposes a targeted tax incentive to spur
              the cleanup of brownfield sites.

    [[Page 71]]

                                     Table 3-1.  ENVIRONMENTAL/NATURAL RESOURCE INVESTMENTS AND OTHER HIGH-PRIORITY PROGRAMS
                                       (Discretionary budget authority unless otherwise noted; dollar amounts in millions)
    --------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                            Percent  Percent
                                                                                                                 1993     1997      1998    Change:  Change:
                                                                                                                Actual  Estimate  Proposed  1993 to  1997 to
                                                                                                                                              1997     1998
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    Environmental Protection Agency (EPA):
      Operating Program......................................................................................    2,767     3,109     3,402     +12%      +9%

       State Revolving Funds (SRFs):
         Clean Water\1\ .....................................................................................    1,928       625     1,075     -68%     +72%
        Drinking Water \1\...................................................................................       --     1,275       725       NA     -43%
      Superfund..............................................................................................    1,589     1,394     2,094     -12%     +50%
      Other..................................................................................................      639       396       349     -38%     -12%
                                                                                                              ----------------------------------------------
          Subtotal, EPA......................................................................................    6,923     6,799     7,645      -2%     +12%

    Department of the Interior (DOI):
      National Park Service Operating Program................................................................      984     1,155     1,220     +17%      +6%
      Bureau of Land Management Operating Program............................................................      638       673       688      +5%      +2%
       Fish and Wildlife Service Operating Program...........................................................      531       524       562      -1%      +7%
                                                                                                              ----------------------------------------------
         Subtotal, DOI (Select programs).....................................................................    2,153     2,352     2,470      +9%      +5%

    Department of Agriculture (USDA):
      Forest Service Operating Program.......................................................................    1,319     1,275     1,342      -3%      +5%
      Investment Non-Operating Program (NW Forest Plan, infrastructure, other)...............................      276       241       211     -13%     -12%
       Rural Water and Wastewater \2\........................................................................      508       565       555     +11%      -2%
       Wetlands..............................................................................................      115       212       213     +84%      +*%
       Environmental Quality Incentives Program (Mandatory)..................................................       --       200       200       NA      +*%
       Wetlands Reserve Program (Mandatory)..................................................................       --       128       176       NA     +38%
       Conservation Reserve Program (Mandatory)..............................................................    1,579     1,862     1,943     +18%      +4%
                                                                                                              ----------------------------------------------
        Subtotal, USDA (Select programs).....................................................................    3,797     4,483     4,640     +18%      +4%

    Land Acquisition: LWCF (DOI/USDA) and Everglades Restoration Fund (DOI)..................................      286       149       301     -48%    +102%
    Other Everglades Restoration (DOI, Corps, USDA, DOC, EPA)................................................       70       114       196     +63%     +72%

    Department of Energy (DOE):
      Energy Conservation and Efficiency.....................................................................      592       550       688      -7%     +25%
      Solar and Renewable Energy R&D.........................................................................      257       270       330      +5%     +22%
      Federal Facilities Cleanup (Environmental Management)..................................................    6,396     6,027     7,246      -6%     +20%
                                                                                                              ----------------------------------------------
        Subtotal, DOE (Select programs)......................................................................    7,245     6,847     8,264      -5%     +21%

    Department of Defense (DOD):
      Cleanup................................................................................................    1,604     2,043     2,114     +27%      +3%
      Environmental Compliance/Pollution Prevention/Conservation.............................................    2,227     2,411     2,486      +8%      +3%
      Environmental Technology...............................................................................      393       182       171     -54%      -6%
                                                                                                              ----------------------------------------------
        Subtotal, DOD (Select programs)......................................................................    4,224     4,636     4,771     +10%      +3%

    Department of Commerce (DOC)/National Oceanic and Atmospheric Administration (NOAA):
      Fisheries and Protected Species........................................................................      232       297       313     +28%      +5%
      Ocean and Coastal Management...........................................................................      121       128       154      +6%     +20%
      Ocean and Atmospheric Research.........................................................................      138       222       223     +61%      +*%
                                                                                                              ----------------------------------------------
        Subtotal, DOC/NOAA (Select programs).................................................................      491       647       690     +32%      +7%

    California Bay-Delta Ecosystem Rest. (DOI, DOC, EPA, Corps, USDA)........................................       20        70       213    +250%    +204%
    Pacific Northwest Forest Plan (USDA, DOI, EPA, DOC, DOL).................................................       --       369       408       NA     +11%
    Army Corps of Engineers Regulatory Program (wetlands)....................................................       86       101       112     +17%     +11%
    Partnership for a New Generation of Vehicles (DOE, DOC, NSF, EPA, DOT)...................................       --       263       281       NA      +7%
    U.S. Global Change Research (NASA, DOE, NSF, DOC, others)................................................    1,464     1,810     1,878     +24%      +4%
     Climate Change Action Plan (EPA, DOE, USDA).............................................................       --       183       277       NA     +51%
    GLOBE--Global Environmental Education (DOC, NASA, EPA, NSF)..............................................       --        13        15       NA     +15%
    Montreal Protocol (State/EPA)............................................................................       25        40        49     +60%     +23%
    Global Environment Facility (Treasury)...................................................................       --        35       100       NA    +186%
    Multilateral and Bilateral Assistance (Funds Appropriated to the President/AID)..........................      272       264       314      -3%     +19%
    Border Environmental Activities (State/Treasury).........................................................       30        83        88    +177%      +6%
                                                                                                              ==============================================
         Total \3\...........................................................................................   25,295    26,334    29,485      +4%     +12%
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    \1\ Reflects a one time transfer of clean water funds to drinking water in 1997.
    \2\ Excludes funding for Rural Community Advancement Program grants to States; 1998 funding would be nine percent higher otherwise.
    \3\ Total adjusted to eliminate double counts and mandatory spending.
     NA = Not applicable.
     *Less than 0.5 percent.

    [[Page 72]]

       Improving Americans' Right to Know About Toxics: The budget
              proposes $49 million to expand the information that people can
              get about toxic threats to their families--without imposing
              more reporting requirements on anyone. It would make the
              information available for the 75 largest metropolitan areas in
              the country through a comprehensive monitoring system, with
              computer links to schools, libraries, and home computers.

       EPA Operating Program: The budget proposes $3.4 billion, a nine-
    percent increase over 1997, for EPA's operating program, which includes
    most of EPA's research, regulatory, partnership grants (with States and
    Tribes), and enforcement programs. The program represents the backbone
    of the Nation's efforts to protect public health through standard
    setting, enforcement, and other means, ensuring that our water is pure,
    our air clean, and our food safe.
       Within the operating program, the budget proposes important increases
    to carry out recently-enacted legislation to protect drinking water and food quality. It proposes significant investments to assess the health risks to children, identify new ways to apply advanced technology to
    environmental needs, and provide urban areas with tools to develop
    community-based solutions to environmental issues. It also maintains a
    strong environmental enforcement program to ensure that polluters find
    an environmental cop on the beat, and fully funds EPA's part of the
    Climate Change Action Plan.

       Water Quality Infrastructure: The budget proposes $725 million in
    capitalization grants for the new Drinking Water State Revolving Funds
    (SRFs), which make low-interest loans to municipalities to help them
    meet the requirements of the new Safe Drinking Water Act Amendments.
    These funds will help ensure that Americans have a safe, clean drinking

    [[Page 73]]

    water supply--our first line of defense in protecting public health.
       EPA also proposes $1.1 billion in capitalization grants to Clean
    Water SRFs to help municipalities comply with the Clean Water Act, thus
    helping to reduce beach closures and keeping our waterways safe and
    clean. In addition, the budget proposes targeted wastewater funds for
    areas facing unique circumstances--$100 million for Boston Harbor, $150
    million for Mexican border projects, and $15 million for Alaskan Native
    villages. The Administration will request a final $100 million of
    special Federal assistance for Boston Harbor for 1999--provided EPA
    finds that the project still requires the funds.

       Department of Agriculture (USDA) Water 2000: The budget proposes to
    continue funding the USDA's Water 2000 initiative--to bring safe
    drinking water to 2.5 million rural Americans with some of the Nation's
    most serious problems of water availability, dependability, and
    quality--within its $1.3 billion for rural water and wastewater loans
    and grants. In addition, the budget proposes to fund, through the Rural
    Community Advancement Program (RCAP), rural development grants that
    States can use to meet their particular rural development needs. With
    proposed RCAP funding eight percent above the 1997 levels, the
    Administration expects to fund 227 new water treatment systems in 1998.
       California Bay-Delta Ecosystem Restoration: In December 1994, Federal
    and California officials signed the historic Bay-Delta Accord, calling
    for a comprehensive series of steps to restore and protect the San
    Francisco Bay and the Sacramento-San Joaquin Delta ecosystem while
    strengthening the State's long-term economic health. With Administration
    support, Congress then adopted the California Bay-Delta Environmental
    Enhancement and Water Security Act in 1996 to authorize more Federal
    spending for restoration activities in the ecosystem. Later that year,
    California voters approved a $995 million bond issue to cover State
    cost-sharing for past and future Bay-Delta restoration and other water-
    related activities. The budget proposes $213 million for Bay-Delta
    ecosystem restoration activities, a 204-percent increase over 1997. As
    it did for 1998, the Administration plans to request the fully
    authorized amount under the 1996 law for 1999 and 2000.
       Wetlands Reserve Program (WRP): The WRP is a voluntary USDA program
    in which willing sellers receive the fair market value to permanently
    retire wetland acres from farm production. Under the 1996 Farm Bill, WRP
    will use permanent easements on one-third of the acres enrolled, 30-year
    easements on another third, and cost-sharing agreements on the remaining
    third. In this last category, landowners will agree to restore wetlands
    on cropland without an easement, receiving only cost-sharing assistance.
    For 1998, the budget proposes to enroll 212,000 acres, an increase of
    82,000 acres over 1997, bringing cumulative WRP enrollment to over
    655,000 acres by the end of 1998. Retiring cropland through the WRP will
    directly benefit the recovery of threatened or endangered species,
    almost 35 percent of which depend on wetlands (see Chart 3-2).

       Conservation Reserve Program (CRP): The CRP pays producers to
    temporarily retire from production environmentally sensitive lands.
    Producers sign 10-year CRP contracts and agree to convert their enrolled
    acres to approved conservation uses, receiving rental payments in
    return. After the contracts expire, producers can return lands back to
    production. The 1996 Farm Bill enables USDA to maintain a 36-million-
    acre CRP, or roughly the current CRP level. Contracts on about 21
    million acres will expire in 1997 and USDA will hold a sign-up to begin
    to replace them in early spring 1997. Through new program rules, the
    Administration will seek to enroll land with the highest environmental
    benefits and release from the CRP less erodible land that is better
    suited for production. CRP's benefits have been significant--after
    falling by 35 to 50 percent in the 1970s and 1980s, wild-duck
    populations bounced back with a 12-percent increase in the mid-1990s.

       National Parks: The budget proposes over $1.2 billion for park
    operations and maintenance, six percent more than in 1997. This level
    would maintain current services at existing parks and support
    commitments for new parks and responsibilities under the 1996 Omnibus
    Parks and Public Lands Management Act. Budgeted funds alone, however,
    cannot

    [[Page 74]]

    meet the growing demand for recreational and visitor services, as
    illustrated in Chart 3-3.
       Consequently, the Administration is using its temporary demonstration
    fee authority to finance facility and resource management improvements.
    Not only do user fees raise funds for repairs and improvements that
    enhance the visitor experience, they give parks an incentive to please
    their customers by improving their facilities and operations. The
    Administration will seek permanent fee authority and legislation to
    reform park concessions--to increase competition between companies that
    want to conduct business in the parks, and to give parks an added
    incentive to negotiate higher returns from concessioners by allowing the
    National Park Service to keep all new receipts.

       Salmon Recovery: Salmon runs throughout the Pacific Northwest are a
    major part of the region's ecosystem and economy. Salmon runs that
    originate in the Columbia/Snake River have declined so much that the
    Commerce Department's National Marine Fisheries Service lists three runs
    as endangered. The Administration has supported a regional bipartisan
    effort to help restore the runs, including a stable, multi-year
    contribution from the Bonneville Power Administration's (BPA) customers
    because BPA's hydro-power operation has helped to foster the decline.
    The Administration is carrying out an agreement with congressional and
    regional interests under which BPA customers would pay, on average, up
    to $435 million a year for salmon recovery.
       The budget also provides funds to fully implement the 1992 Elwha
    River Ecosystem and Fisheries Restoration Act. The Elwha River, a major
    waterway within Olympic National Park in Washington State, holds
    tremendous potential for restoring abundant salmon runs. The budget
    provides $25 million in funding for 1998--enough to complete acquisition
    of the river's two dams and perform planning and design activities
    associated with

    [[Page 75]]

    their removal--and seeks future-year funding at levels that would complete dam removal and river restoration.

       Multilateral and Bilateral Environmental Assistance: The budget
    proposes $314 million, 19 percent more than in 1997, for bilateral and
    multilateral environment assistance. Bilateral assistance includes
    Agency for International Development activities to address climate
    change, biodiversity, and sustainable agriculture in developing
    countries. Multilateral assistance funds U.S. voluntary contributions to
    the U.N. environment system and other international organizations to
    address various international environmental activities.
       Global Environment Facility (GEF): U.S. participation in the GEF is a
    cornerstone of U.S. foreign policy on the environment. The GEF has
    become the world's leading institution for protecting the global
    environment and avoiding economic disruption from climate change,
    massive extinction of valuable species, and dramatic collapse of the
    oceans' fish population. The $100 million budget proposal would meet the
    1998 portion of the U.S. pledge to the GEF's four-year (1995-1998)
    funding program, and doing so is vital to maintaining U.S. leadership of
    the program.
       Energy Efficiency and Renewable Energy: The budget proposes $688
    million for energy conservation and efficiency programs, and $330
    million for solar and renewable energy programs, increases of 25 percent
    and 22 percent, respectively. These Energy Department (DOE) programs
    reduce greenhouse gases and other pollutants by increasing energy
    efficiency and expanding the use of non-fossil-based energy sources. The
    energy conservation programs include both near-term efforts to
    demonstrate and promote the best available technologies, and longer-term
    efforts to develop breakthrough technologies and products. A prominent
    example of the latter is the Partnership for a New Generation of
    Vehicles, a joint

    [[Page 76]]

    government-industry effort to develop cars with triple the fuel economy of today's models. The solar and renewable energy research and development activities include substantial support for reducing the costs of photovoltaics, wind energy, and biofuels.
       Federal Facilities Cleanup and Compliance: The Federal Government
    continues to face an enormous challenge in cleaning up Federal
    facilities contaminated with radioactive or hazardous waste. DOE faces
    the most complex and costly problems from over 40 years of research,
    production, and testing of nuclear weapons. The Defense Department's
    (DOD) problems include hazardous wastes similar to those found at
    industrial and commercial sites.
       The budget proposes over $7.2 billion for DOE's Environmental
    Management program, 20 percent more than in 1997, including over $1
    billion to implement a privatization strategy to cut costs and speed
    cleanup and waste disposal. In 1998, DOE will accelerate the Formerly
    Used Sites Remedial Actions Program (FUSRAP), which is cleaning up
    private properties contaminated during the weapons production process in
    order to allow their speedier return to productive use. By the end of
    1998, DOE will complete clean-up at 28 of 46 FUSRAP sites and 44 of 86
    other DOE sites and facilities.
       DOD, which operates one of the Nation's most diverse and successful
    environmental programs, is focusing its cleanup efforts on reducing
    relative risk at its active and closing installations. It is conducting
    studies or cleanups at 15,240 sites on 770 military installations and
    2,641 formerly-used properties. Moreover, it has determined that 10,970
    other sites require no further action. DOD also is making real progress
    in its compliance/pollution prevention, conservation, and environmental
    technology programs. The budget proposes over $4.7 billion for all DOD
    environmental activities, three percent more than in 1997.