Economic Outlook, Highlights from FY 1994 to FY 2001, FY 2002 Baseline Projections

[Economic Outlook, Highlights from FY 1994 to FY 2001, FY 2002 Baseline Projections]
[III. Major Functions of the Federal Government]
[6. Natural Resources and Environment]
[From the U.S. Government Printing Office, www.gpo.gov]

[[Page 81]]

6. NATURAL RESOURCES AND ENVIRONMENT

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

Table 6-1. Federal Resources in Support of Natural Resources and Environment
(Dollar amounts in millions)
----------------------------------------------------------------------------------------------------------------
Percent
Function 300 1993 2001 Change:
Actual Estimate 1993-2001
----------------------------------------------------------------------------------------------------------------
Spending:
Discretionary budget authority............................................ 21,405 28,778 34%
Mandatory outlays......................................................... 168 157 -7%
Credit Activity:
Direct loan disbursements................................................ 39 43 10%
Tax expenditures............................................................ 1,595 1,550 -3%
----------------------------------------------------------------------------------------------------------------

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

Table 6-2. High-Priority Environmental and Natural Resource Programs
(Budget authority, dollar amounts in millions)
------------------------------------------------------------------------
Percent
1993 2001 Change:
Actual Enacted 1993-2001
------------------------------------------------------------------------
Lands Legacy Initiative (DOI, USDA, 380 1,689 344%
NOAA) \1\.............................
Farm Conservation Initiative (USDA) 1,584 2,122 34%
(mandatory) \2\.......................
Clean Energy Initiative (DOE, USDA, 251 321 28%
AID, DOC, TDA, EX-IM).................
Greening the Globe Initiative (AID, 82 121 48%
Treasury, USDA).......................
Climate Change Technology Initiative ......... 1,239 NA
(DOE, EPA, USDA, HUD).................
Clean Water Action Plan (EPA, USDA, ......... 2,303 NA
DOI, NOAA, Corps).....................
Salmon Habitat Restoration (NOAA, ......... 231 NA
Corps)................................
Endangered Species Act (DOI, NOAA).... 75 178 137%

Department of Transportation (DOT):
Mass Transit........................ 3,774 6,274 66%
Congestion Mitigation and Air 601 1,661 176%
Quality.............................
Environmental Enhancements; 114 797 599%
Preservation Pilots.................
--------------------------------
Subtotal, DOT (Select programs)... 4,489 8,732 95%

Department of the Interior (DOI):
National Park Service Operating 984 1,472 50%
Program.............................
Bureau of Land Management Operating 638 817 28%
Program.............................
Fish & Wildlife Service Operating 531 777 46%
Program.............................
--------------------------------
Subtotal, DOI (Select programs)... 2,153 3,066 42%

Department of Agriculture (USDA):
Forest Service Operating Program.... 1,319 1,968 49%
Natural Resources Conservation 577 714 24%
Service Operating Program...........
Water/Wastewater Grants and Loans... 508 644 27%
--------------------------------
Subtotal, USDA (Select programs).. 2,404 3,326 38%

Environmental Protection Agency (EPA):
Operating Program................... 2,767 3,866 40%
--------------------------------
Subtotal, All EPA................. 6,923 7,829 13%

Department of Energy (DOE):
Energy Conservation and Efficiency 592 817 38%
(gross).............................
Solar and Renewable Energy R&D (net) 249 376 51%
Federal Facilities Cleanup 6,396 6,317 -1%
(Environmental Management Program)..
--------------------------------
Subtotal, DOE (Select programs)... 7,237 7,510 4%

Department of Defense (DOD):
Cleanup............................. 1,604 2,068 29%
Environmental Compliance/Pollution 2,227 2,215 -1%
Prevention/Conservation.............
--------------------------------
Subtotal, DOD (Select programs)... 3,831 4,283 12%

National Oceanic and Atmospheric
Administration (NOAA):
Fisheries and Protected Species..... 232 569 145%
Ocean and Coastal Management........ 121 429 255%
Ocean and Atmospheric Research...... 202 345 71%
--------------------------------
Subtotal, NOAA (Select programs).. 555 1,343 142%

Partnership for a New Generation of ......... 236 NA
Vehicles (DOE, DOC, NSF, EPA, DOT)....
U.S. Global Change Research (NASA, 1,323 1,700 28%
DOE, NSF, DOC, USDA, others)..........
GLOBE--Global Environmental Education ......... 11 NA
(NOAA, NASA, EPA, NSF)................
Montreal Protocol (State, EPA)........ 25 38 52%
Global Environment Facility (Treasury) ......... 108 NA
Multilateral and Bilateral Assistance 329 334 2%
(International Programs/AID)..........
================================
Total \3\.......................... 31,226 42,322 36%
------------------------------------------------------------------------
NA = Not applicable.

\1\ Includes funding (i.e., coastal management assistance) that is not
in the new conservation spending category.

\2\ Includes funding for the Conservation Reserve Program (CRP).

\3\ Total includes mandatory spending. Total adjusted to eliminate
double counts.

Note: Agency abbreviations not explained above: AID (Agency for
International Development), Corps (Army Corps of Engineers), DOC
(Department of Commerce), DOE (Department of Energy), EX-IM (Export-
Import Bank), HUD (Department of Housing and Urban Development), NASA
(National Aeronautics and Space Administration), NSF (National Science
Foundation), State (Department of State), and TDA (Trade and
Development Agency, International Assistance Programs).

----------------------------------------------------------------------
The Nation faced a number of serious environmental problems in 1993.
Neighborhoods were blighted by toxic waste dumps because only 12 percent
of the Nation's worst sites had been cleaned up despite 12 years of
Federal effort. Sixty-two million people lived in areas with drinking
water that failed to meet Federal standards, and 150 million people
lived in areas that failed to meet air quality standards. Further, many
of the Nation's most well-known natural treasures, such as Yellowstone
National Park, were endangered by the adverse effects of encroaching
development.
President Clinton came into office committed to providing the American
people with a cleaner environment, stronger communities, and a brighter
future for families across the country. Since 1993, the President has
invested in a common sense and cost-effective approach of using new
technologies, pursuing tougher enforcement of environmental laws,
strengthening public health standards, and protecting our irreplaceable
national treasures.
As a result, the Nation has the cleanest environment and strongest
economy in a generation. Almost four times as many Superfund sites were
cleaned up during the Clinton-Gore Administration as in the previous 12
years. Compliance with drinking water standards increased from 83
percent of the population served by community water systems to 89
percent of the population, and the number of areas out of attainment
with the ozone air quality standard dropped from 98 to 37. In addition,
the Administration has protected from environmental harm tens of
millions of acres of national parks and forests, national monuments and
wilderness areas, from the red rock canyons of Utah to the Florida
Everglades.
As a part of his effort to protect our environment and natural
resources, the President promoted targeted investments in key
environmental initiatives, and fought back numerous anti-environmental
riders that would have traded hard-won environmental safeguards for
short-term special interest gains. Table 6-2 compares 1993 and 2001
funding for high-priority environmental and natural resources programs
in this and other Government function areas. In 2001, for the natural
resources and environment function only (Table 6-1), the Congress
enacted $28.8 billion in discretionary budget authority to protect
public health, the environment, manage Federal lands, conserve
resources, provide recreational opportunities, and construct and operate
water resources projects. This is an

[[Page 83]]

increase of $7.4 billion, or 34 percent, over the $21.4 billion spent in
1993.

Conservation and Land Management

Lands Legacy: In 1993, the effect of development and urban sprawl on
parks, fragile coastal habitat, and open spaces was not as widely
understood as it is today. In some areas, uncontrolled growth was
undermining people's quality of life by fragmenting the parks and
forests that provide outdoor recreation and threatening the ecosystems
that provide habitat for wildlife and endangered species.
Over the past eight years, the Clinton-Gore Administration forged a
consensus in support of reliable funding for conservation programs that
temper the adverse environmental effects of rapid development. In 1999,
the President announced his Lands Legacy Initiative, which would double
conservation funding and provide dedicated, protected funding for: (1)
land acquisition in national parks, forests, refuges, and other public
lands; (2) grants to States and local communities to restore urban parks
and forests, protect wildlife habitat, and plan for smart growth; and,
(3) protection of marine sanctuaries, estuaries, and coastal areas. This
led to the enactment in October 2000 of a new Conservation spending
category under the Budget Enforcement Act that, from 2002 through 2006,
will set aside about $2 billion annually to be used only for specific
conservation, preservation, and related programs. This category
dedicates and protects funding to maintain and build upon current
efforts preserving both the great places of this Nation and the green
spaces of local communities.
The conservation investments in this category include funding for 25
distinct programs in six bureaus within the Departments of Agriculture
(USDA), Commerce (DOC), and the Interior (DOI). The protected funding is
allocated among six subcategories, plus an unallocated amount available
to all subcategories. Actual funding levels for each program will be
determined through the annual appropriations process. Table 6-3 shows
subcategory allocations for 2002, plus the equivalent funding levels in
prior years. The total amount of protected funding will increase each
year, up to $2.4 billion in 2006.
----------------------------------------------------------------------

Table 6-3. Lands Legacy \1\
(Budget authority, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
Actual Estimate
Subcategory ------------------ 2001 ------------------
1993 2000 Enacted 2002 2006 \2\
----------------------------------------------------------------------------------------------------------------
Land and Water Conservation Fund (LWCF)........................... 283 467 545 540
State and Other Conservation Programs............................. 26 68 270 300
Urban and Historic Preservation................................... 71 113 166 160
Federal Deferred Maintenance--new funds........................... ....... ....... 150 150
Payments in Lieu of Taxes (PILT)--new funds....................... ....... ....... 50 50
NOAA/DOC Coastal Assistance....................................... 45 161 283 440
Unallocated....................................................... ....... ....... ....... 120
---------------------------------------------
Total......................................................... 425 809 1,464 1,760 2,400
----------------------------------------------------------------------------------------------------------------
\1\ Only includes amounts in the new Conservation spending category.

\2\ Total amounts increase each year up to $2.4 billion in 2006. Actual funding levels for each subcategory for
2003-2006 will be determined through the annual appropriations process.

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

Forest Planning Improvements: The Administration made improved
multiple-use forest planning one of its first and highest priorities for
the USDA's Forest Service. In April 1993, President Clinton convened a
Forest Conference in Portland, Oregon, to bring together scientists, the
forest products industry, environmental groups, Indian Tribes, and other
concerned citizens to discuss issues surrounding the management of
Federal lands in the Pacific Northwest and northern California. In 1991,
the Forest Service had been blocked by a court injunction from issuing
new timber sales in this area because these sales threatened the habitat
of the northern spotted owl.

[[Page 84]]

Working with all interested parties, the Forest Service issued standards
one year later that broke the impasse by allowing timber sales and
protecting key watersheds and valuable old-growth timber ecosystems.
This difficult but successful process demonstrated again that economic
and environmental interests are not mutually exclusive, and can be
brought together through forest plans that support the multiple uses for
which national forests were created.
This high standard was expanded and solidified in the new forest land
and resource management planning regulation that was completed in
October 2000. It replaced a 1982 regulation that emphasized timber
production targets. In order to manage multiple uses in a forest, each
national forest develops a comprehensive plan, incorporating substantial
public involvement and sound science, to guide future forest management.
National forests need to revise their forest plans to address new
information, changed conditions, and/or new issues or trends. The forest
plans cover the permitted uses on the national forest lands, including
recreation uses, concession opportunities, timberland suitability, and
off-road vehicle access. The new rule, emphasizing ecological
sustainability, will better protect the environment, improve public
participation in forest activities, and integrate science more
effectively into Forest Service decisions.

Reform of Payments to States: Because Federal lands result in a
reduction to a county's property tax base, the Federal Government
returns a percentage of revenues generated from those lands, some of
which are provided from timber sales, to the States to fund county
schools and road maintenance. The need to address environmental concerns
on Federal lands, however, has caused a reduction in timber sales over
the last 10 years and a corresponding reduction in the Federal payments.
To offset the fiscal impact of this reduction in Federal payments, the
Administration proposed legislation that would provide for permanent,
stable payments to States, made directly from the Treasury. These
payments would be greater than the current payments and, importantly,
sever the link between funding needs for county education and road
maintenance from timber sales.
In November 2000, President Clinton signed the Secure Rural Schools
and Community Self-Determination Act. This law will stabilize the
payments to States and counties at historically high levels through
2006--increasing payments over five years by almost $1 billion. The law
also creates citizen advisory committees, and gives local communities
the opportunity to fund environmental restoration projects on Federal
and non-Federal lands for activities such as salmon habitat restoration
or road maintenance projects.

Roadless Conservation Policy: Through comprehensive rulemaking
accompanied by an environmental impact statement, the Administration
established a policy to prohibit most road construction and
reconstruction, as well as timber harvesting (except as needed for
stewardship purposes) in inventoried roadless areas of the National
Forest System. The Final Environmental Impact Statement estimated that
almost 60 million acres would be protected. In developing the roadless
plan, the Forest Service sought extensive public input, holding over 600
public meetings across the Nation. Hundreds of thousands of people
participated in this public process, generating over one million
comments. Roadless areas provide the large, relatively unbroken blocks
of undisturbed lands that are critical to a variety of terrestrial and
aquatic wildlife and plants, including hundreds of threatened,
endangered, and sensitive species. Many inventoried roadless areas
function as biological reserves and refuges for these species, and play
a key role in maintaining native plant and animal biological diversity.
If the Forest Service had not acted to protect these areas, there would
have been an increased loss of biodiversity, due to timber harvest,
road-related fragmentation, and invasion by non-native species.
Increased Agricultural Conservation: Fifty percent of the continental
United States is crop, pasture, and rangeland, and this land is managed
by two percent of the population who are the Nation's farmers and
ranchers. USDA's conservation programs provide farmers and ranchers with
financial and technical assistance to implement best management
practices that protect the environment while sustaining agricultural
productivity and boosting farm income. In response to growing natural
resource concerns, USDA, during this

[[Page 85]]

Administration, expanded its conservation mission beyond its original
focus of preventing soil erosion and now provides assistance for a wide
range of activities such as wetlands restoration, wildlife habitat
improvement, and farmland protection. The Administration strongly
supported conservation programs as a way to help farmers and ranchers
that were facing economic hardship while providing environmental
benefits to all Americans.
USDA conservation programs restore more of our Nation's wetlands than
any other Federal program, and were an important part of the
Administration's efforts to develop strong and consistent Federal
wetlands policies and initiatives. USDA's largest wetlands program is
the Wetlands Reserve Program (WRP), which removes agricultural wetlands
from production through permanent or long-term easements and restores
their natural hydrology. From 1993 to 2000, over 880,000 acres were
enrolled in WRP, leaving only approximately 40,000 acres available under
its 975,000 acre cumulative enrollment cap in 2001. However, in 2000,
the Administration persuaded the Congress to increase the cap by 100,000
acres, extending WRP for at least one more year.
USDA's Conservation Reserve Program (CRP), authorized to enroll 36.4
million acres, is the Nation's largest private lands environmental
program. It provides farmers with annual rental payments in exchange for
removing land from production for 10-15 years and restoring natural
vegetative cover. The Administration significantly improved this popular
program by strengthening the Environmental Benefits Index used to
determine eligibility and changing the way payment rates were
determined. As a result, the environmental quality of enrolled acres has
increased since 1993, resulting in greater natural resource protection,
and taxpayers have saved hundreds of millions of dollars through the use
of more accurate land rental rates based on different soil types.
USDA conservation programs also made up a key component of President
Clinton's Clean Water Action Plan (CWAP), which provided a blueprint for
restoring and protecting the Nation's waterways. As part of the CWAP:
USDA jointly issued with EPA in March 1999 a Unified Strategy
for Animal Feeding Operations, which called for all animal
feeding operations (AFOs) to voluntarily implement
comprehensive nutrient management plans (CNMPs) by 2009 to
reduce polluted runoff. In support of this guidance and to
help producers develop CNMPs, the Administration sought and
obtained additional AFO technical assistance funds. As a
result, USDA was able to steadily increase technical
assistance funding for AFOs from $37 million in 1999 to $75
million enacted for 2001.
USDA aggressively promoted Conservation Reserve Enhancement
Program (CREP) agreements with States. CREP agreements combine
Federal CRP funds with State funds to remove environmentally
sensitive areas from production for at least 10 years and
restore natural habitat. Currently, 13 States have CREP
agreements with USDA. The New York agreement, which totals $11
million ($8 million Federal/$3 million State), targets the
Catskill and Delaware River watersheds that supply New York
City's drinking water. It is estimated the agreement will
reduce erosion in these watersheds by 36,000 tons of soil per
year, allowing New York City to avoid constructing a $6
billion drinking water filtration plant, while also improving
habitat for endangered fish and wildlife.

Everglades Restoration: This Administration provided an unprecedented
level of funding to restore the Everglades, which supports 68 threatened
and endangered species, and protects the water supply and bolsters the
economy of south Florida. Since 1993, the Administration directed over
$1.7 billion to land acquisition, water projects, and scientific
research for Everglades restoration. Of this total, over $500 million
funded land acquisitions to help preserve the Everglades in perpetuity.
Many of these funds resulted from the Vice President's 1996 Everglades
restoration plan, which proposed $100 million annually over four years
for land acquisition.
In 1999, the Vice President presented to the Congress the
Administration's long-term Everglades restoration plan. Developed by

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private, corporate, and governmental stakeholders, it would increase
water storage for environmental and urban water supplies, enhance
natural water flows to the Everglades, and improve water quality. This
Administration secured authorization of the first $1.4 billion in
projects for this plan in November 2000. The Federal Government and
Florida will each pay half of the cost of this plan, estimated at $7.8
billion over the next 35 years.

Wetlands Protection: The Administration achieved major successes in
protecting the Nation's wetlands. Since 1993, Federal policies and
programs protected wetlands by expanding technical and financial
assistance to private landowners to enhance their land and water
management practices; permitting and regulating developments affecting
wetlands and our Nation's waters; restoring and creating wetlands;
acquiring valuable wetlands from willing sellers; and educating the
public about the benefits of wetlands. According to the Interior
Department, these efforts contributed to an 80-percent decrease in the
annual wetland loss rate--only 58,500 acres were lost on average from
1986-1997, down significantly from the average annual loss of 290,000
acres in the previous 10 years. This is the largest decrease in the
annual wetland loss rate since the Federal Government began compiling
the data in the 1950s. Federal activities included in this effort to
protect wetlands are the Interior Department's Coastal and Partnership
programs and its North American Waterfowl Management Plan; the
Agriculture Department's Swampbuster and Wetlands and Conservation
Reserve programs; the Army Corps of Engineers and the Environmental
Protection Agency's Clean Water Act wetlands programs; the
Administration's Clean Water Action Plan; and, various additions to
national forests, parks, monuments, wildlife refuges, and other public
lands.
California Bay-Delta Management: In August 2000, after more than five
years of work, Federal and State policy officials signed a Record of
Decision finalizing the long-term $8.7 billion CALFED plan for the
California Bay-Delta. This CALFED plan marks the Administration's
successful creation, in cooperation with the State of California and
other stakeholders, of a blueprint for effective management of the Bay-
Delta and its water resources, designed to end sixty years of chronic
conflict in the region. The 740,000-acre Bay-Delta ecosystem not only
serves as habitat to more than 750 plant and animal species, but also
supplies drinking water for two-thirds of all Californians and
irrigation water for over seven million acres of the most highly
productive agricultural land in the world. The CALFED plan will provide
better water quality for all beneficial uses; enhance and increase
habitat and ecological functions in the Bay-Delta to support plant and
animal species; improve water supply reliability for agricultural, urban
and environmental interests; and reduce the risk to economic activities,
water supply, infrastructure, and the ecosystem from catastrophic
breaching of Delta levees. To support the Bay-Delta during development
of the long-term plan, the Administration also provided from 1998 to
2000 a total of $190 million in funding to support initial Bay-Delta
ecosystem restoration activities, and $30 million for related CALFED
efforts.
Preservation of Our Natural and Cultural Treasures: For the past eight
years, this Administration took significant measures to conserve the
Nation's natural and cultural heritage. Just as we now are grateful for
the far-sighted efforts in the 19th and early 20th centuries to protect
Yellowstone and Yosemite, so will Americans in the 21st Century
appreciate the measures taken by the Administration to conserve our
natural and cultural treasures. President Clinton protected more land in
the lower 48 States under the 1906 Antiquities Act--over five million
acres--than any other President, designating new national monuments and
expanding others. Areas protected include: Grand Staircase-Escalante
National Monument in Utah, consisting of almost 1.9 million acres of
spectacular red rock canyon lands and artifacts from three cultures;
Giant Sequoia National Monument in California, a 328,000 acre monument
characterized by magnificent groves of towering giant sequoias (many as
old as 3,200 years) interspersed among bold granitic domes, spires, and
plunging gorges; Grand Canyon-Parashant National Monument in Arizona, a
one million acre protection area situated on the Colorado Plateau along
the North Rim of the Grand Canyon; and California Coastal National

[[Page 87]]

Monument, made up of thousands of islands, rocks, exposed reefs, and
pinnacles along the entire coast of California.
The Administration also worked to protect other natural treasures,
such as the majestic California Desert, and has consistently supported
legislation to protect other natural areas. Most recently, in 2000, the
President signed legislation establishing the Colorado Canyons National
Conservation Area in Colorado, the Santa Rosa/San Jacinto Mountains
National Monument in California, and a new cooperative management and
protection area for Steens Mountain in Oregon.

Baca Ranch: In July 2000, President Clinton signed the Valles Caldera
Preservation Act authorizing the purchase of the Baca Ranch in New
Mexico, a 95,000-acre swath of forested mountains and grassy valleys
that includes the Valles Caldera, a one million-year-old collapsed
volcano 14 miles in diameter. The purchase of this property was
completed later that year, and title has now transferred to the Forest
Service. Located in the Jemez Mountains region west of Santa Fe, the
Ranch also includes one of the Nation's largest wild elk herds, and its
acquisition will protect important resources, and will offer
unparalleled recreation opportunities for the region and all Americans.
Headwaters Forest: During 1998, the Administration sought, and the
Congress provided, $250 million to acquire the Headwaters Forest in
northern California, the largest privately owned stand of ancient
redwoods. As part of the acquisition, the Administration ensured that
Headwaters and its threatened and endangered inhabitant species were
protected. To promote collaborative species protection, the
Administration developed a scientifically sound habitat conservation
plan. The Federal Government and the State of California jointly
acquired Headwaters in 1999.
Yellowstone Park: To protect Yellowstone National Park, the
Administration agreed in August 1996 to acquire Crown Butte, Inc.'s
interest in the New World Mine in Montana, the potential development of
which posed a severe environmental threat to Yellowstone's unique
landscape and wildlife resources. In 1998, the Administration sought,
and Congress provided, $65 million to proceed with this agreement, which
will preserve one of the crown jewels of the National Park System. Crown
Butte also dedicated $22 million to clean up contamination at the site
from earlier mining activities. The Administration worked with Crown
Butte and other parties to complete the acquisition in 1999.
Millennium Initiative to Save America's Treasures: The First Lady led
an Administration initiative to commemorate the Millennium by awarding
grants through the National Park Service to support the preservation of
the many historic sites and cultural artifacts that are also America's
treasures. The Save America's Treasures program received $95 million
over three years to provide dollar-for-dollar matching grants for
Federal, State, local, and private entities to restore and preserve
cultural artifacts, documents, collections, and historic structures
across the Nation. Since 1999, over 180 projects have been identified,
with others yet to be selected. Projects include restoring the Star
Spangled Banner at the Smithsonian in Washington, D.C., preserving
archeological sites at Mesa Verde in Colorado, and stabilizing buildings
at Angel Island Immigration Station in San Francisco.
Management of the Impacts of Wildfires on Communities and the
Environment: The devastating wildfires of 2000 highlighted the need to
reassess Federal efforts in addressing the impacts of wildfires on
communities and the environment. Though wildfires are part of a natural
process essential to the maintenance of many ecosystems, intensive
efforts to suppress all wildfires over the last century have resulted in
the buildup of fire fuels in many areas, and in unnaturally intense
fires that spread rapidly, burn more completely, and are often extremely
difficult to suppress. Such fires are more hazardous to communities and
the environment. Through a 55-percent funding increase (to a total $2.9
billion for 2001) the Administration took immediate steps to address the
consequences of fires and problems that were highlighted during the 2000
fire season. Enacted funding increases totaling $1.6 billion included:
$393 million for preparedness activities to ensure that the Federal
wildland firefighting agencies have the necessary staff and equipment
for future fire seasons; $281 million for fire fuels reduction
activities primarily to alleviate immediate threats to

[[Page 88]]

communities in the wildland-urban interface; and $227 million for the
restoration of areas burned by the 2000 fires.
Promotion of Responsible Mining on the Public Lands: In 2000, the
Department of the Interior's Bureau of Land Management (BLM) completed a
multi-year process of revising the agency's ``3809'' surface mining
regulations that govern hardrock mining on public lands. The scope and
technology of hardrock mining operations on Federal lands have changed
dramatically since 1980, when the ``3809'' regulations were originally
published. The final regulations enable the agency to fulfill its duty
under Federal law to prevent ``unnecessary or undue degradation'' of BLM
lands from hardrock mining, thereby protecting public health, public
land resources, and the environment. The rules will allow BLM to reject
plans of operation for mines that would cause ``substantial irreparable
harm'' to significant scientific, cultural, or environmental resources
if the damage cannot be effectively mitigated. The regulations also
strengthen bonding requirements for mining operators to ensure that
these operators, rather than the Nation's taxpayers, bear the costs of
reclaiming mined lands. In addition, the new regulations specifically
address both cyanide leaching practices and acid mine drainage.
The Endangered Species Act (ESA)--Making It Work: Administration
reforms have increased ESA flexibility, furthering the Act's ability to
protect at-risk species and to reconcile species conservation with the
needs of landowners. These reforms include voluntary conservation
agreements (Candidate Conservation Agreement--CCAs) between Interior's
Fish and Wildlife Service and private or public parties to implement
conservation measures and monitor activities, preventing the need to add
species to the Endangered Species list. In 2000, the Fish and Wildlife
Service entered into 20 CCAs with private landowners or State and local
governments that, together with other efforts, prevented six species
from being listed. Since 1994, the Service has entered into more than 90
CCAs. In addition, early intervention processes implemented by the
Department of Commerce's National Marine Fisheries Service to identify
species before they become endangered effectively eliminated the need to
list five threatened aquatic species.
The Administration also significantly expanded the use of Habitat
Conservation Plans (HCPs) to address potential conflicts between
development and protection of listed species. HCPs give the private
sector and State, local, and Tribal governments the flexibility to
propose solutions that permit the protection of endangered species and
conservation of habitat, while allowing for development. By the end of
2001, HCPs will protect over 40 million acres and an estimated 435
species.
The Administration was successful in defeating legislative riders that
sought to weaken the Endangered Species Act. For example, the
Administration worked with the Congress to allow the preservation of sea
lions off the coast of Alaska, and the re-introduction of grizzly bears
into the Bitterroot Mountains of Montana and Idaho. The Administration
also worked with affected stakeholders to ensure that necessary changes
to the operation of the Missouri River to protect listed species,
including the pallid sturgeon, the lest tern and the piping plover, were
allowed to go forward.

National Estuarine Research Reserves--Protecting and Restoring our
Nation's Estuaries: Since 1993, Commerce's National Oceanic and
Atmospheric Administration (NOAA) and its State partners increased the
number of National Estuarine Research Reserves from 22 reserves in 19
States, to 25 reserves in 20 States, with two pending to be established
in 2001. This expansion more than doubled the protected fragile
estuarine habitat to over one million acres. Estuaries are essential to
our environment, serving as filters where fresh water meets the ocean to
help maintain the health of our coasts.
Protection of National Marine Sanctuaries: In 1993, 11 National Marine
Sanctuaries protected 14,733 square nautical miles of valuable cultural
and natural resources along our Nation's coasts. Today, as a result of
this Administration's investments to preserve these unique and important
sites, there are now 13 Marine Sanctuaries covering 18,000 square
nautical miles of sensitive underwater habitat and submerged cultural
resources, including the newest sanctuary in the

[[Page 89]]

Great Lakes. Other sanctuaries protect whales off the coast of Hawaii,
and splendid coral reefs around the Florida Keys and American Samoa. In
December 2000, the President designated the first ever Northwestern
Hawaiian Islands Coral Reef Reserve protecting almost 100,000 square
nautical miles.
Increased Participation in Coastal Zone Management: The number of
States participating in the Coastal Zone Management program expanded
from 29 in 1993 to 33 of 35 possible participants today. These States,
working in partnership with NOAA, developed voluntary, comprehensive
coastal management programs to keep U.S. coastlines healthy and
productive. While no States had approved Coastal Zone Management Non-
point Pollution Control programs in 1993, all of the 33 States now have
fully or conditionally approved Non-point Pollution Control Programs and
the rest have conditionally approved programs to reduce pollution from
runoff, one of the greatest remaining threats to our Nation's water
quality.
Restoration of Ocean Resources: The National Oceans Conference, held
in June 1998, drew together for the first time a full array of ocean
interests, including government, industry, science, and conservation.
The Conference resulted in new initiatives, including steps to restore
coastal reefs, rebuild marine fisheries, preserve freedom of the seas,
provide public access to military data and technology, enhance the
competitiveness of America's ports, and protect our National marine
sanctuaries from oil drilling. A follow-up report to the President and
Vice President on the National Oceans Conference was issued in September
1999, which highlighted the importance of preserving the oceans' complex
and delicate balances. In keeping with the recommendations of the
report, the Executive Office of the President convened the Ocean Report
Task Force to accomplish key, specific oceans recommendations. The work
of this task force will be concluded shortly, and has been very
successful. Accomplishments include: gear restrictions protecting
northern right whales; expanded enforcement capabilities for
environmental ocean crime detection; greater protection for sea turtles;
and increased funding for marine activities.
Scientific Support for Natural Resources: The management of land and
water, and natural resource protection must be based on sound and
objective natural resource science.
U.S. Geological Survey (USGS): The Department of the Interior's USGS
provides research and scientific information to land managers and the
public to better understand ecosystems and species, land and water
resources, and natural hazards. Over the past eight years, USGS became
more responsive to the Nation's pressing and complex natural resource
issues by delivering scientific analysis, products, and services in a
useful, usable format to land managers, other decision-makers, and the
public. USGS adopted a customer-driven focus to enhance the relevance
and usefulness of its scientific information, and led the Government in
the standardization of scientific information and digital data through
major infrastructure efforts such as the National Biological Information
Infrastructure. For 2001, USGS also received increased funding to expand
State partnerships to acquire and deliver scientific information for
decision-making. Examples of significant USGS accomplishments since 1993
include:
Real-time Data Availability--USGS operates national networks
of stream gauges and seismometers to monitor flooding and
earthquake activity. USGS accelerated the development of real-
time hazards information delivery through significant
investments to modernize and improve these networks and other
hazard networks and provide information in real-time to the
public.
Assessment of the Nation's Biological Resources at Century
End-- In June 1999, USGS released the first large-scale
assessment of the Nation's natural resources in a two-volume
report, Status and Trends of the Nation's Biological
Resources. This report synthesizes current information within
a historical perspective to document how the Nation's
biological resources are changing.
National Oceanic and Atmospheric Administration (NOAA): The
Administration's support for the modernization of NOAA's National
Weather Service (NWS) and for the data

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collected by NOAA's National Environmental Satellite and Data
Information Service greatly improved weather forecasts and flood and
tornado warnings. Support to its Office of Oceanic and Atmospheric
Research provided advances that now enable NOAA to predict El Nino
events with a level of skill and enough lead time that the national and
international economies can save billions of dollars a year in avoidable
costs.
The benefits of the NWS modernization and associated restructuring are
dramatic and have set the standard for weather agencies worldwide. NWS's
modernization increased warning lead time for flash floods from 22
minutes in 1993 to an estimated 55 minutes in 2000, and the accuracy of
flash flood warning from 71 percent in 1993 to an estimated 86 percent
in 2000; modernization also increased the lead time for tornado warnings
by 100 percent and the accuracy of tornado warnings by 62 percent. The
extra time and accuracy save lives. In addition, three-to-four day
weather forecasts are as accurate as the two-day forecasts of 15 years
ago.
In 1993, NOAA identified 43,000 square nautical miles of waters that
were in critical need of new hydrographic surveys around major ports and
harbors, as well as previously unsurveyed areas of Alaska. With 98
percent of cargo by weight coming into U.S. ports, over half of it
hazardous material, and ever larger vessels pushing the limits of
dredged channels, the mariners' need for accurate, updated nautical
charts was growing every day. While NOAA estimated it would take over 40
years to eliminate this critical survey backlog, today, that estimate is
cut in half, thanks to increased resources, advances in technology, and
successful partnerships with the private sector.

Recreational Resources

Enhanced Stewardship: This Administration took key steps to improve
our investments in national parks, wildlife refuges, national forests,
and other public lands, so that future generations will have the same
opportunity to enjoy these national treasures that we have today.
Discretionary funding to maintain and restore facilities on these lands
has grown by 50 percent, from $1.0 billion in 1993 to over $1.5 billion
in 2001. Federal land management agencies also now have temporary
authority to collect expanded recreation and user fees, and reinvest the
$200 million in annual fee revenue in visitor facilities and services.
Although this authority is not yet permanent, the experience over the
past few years has shown that the public is willing to pay fees when
they understand the funds will be used to support the parks, forests,
and refuges they are visiting.
In addition to increased funding, the Administration initiated
important management reforms to improve how these funds are spent. The
Department of the Interior's National Park Service, Fish and Wildlife
Service, and BLM have each begun extensive facility condition
assessments to determine more accurately where maintenance has been
deferred. Facility maintenance information systems are being implemented
to identify and track specific maintenance and construction projects.
Each bureau ranks its projects to prepare a five-year list of
maintenance and construction priorities, so that available funds may be
targeted at the most pressing needs. Other reforms include: the
development of capital asset plans that identify up-front a project's
cost, schedule, and performance goals; a restructuring of the National
Park Service construction planning process at its Denver (Colorado)
Service Center; and an increased reliance on standardized designs and
private architectural firms. The Administration also led the successful
effort to improve management of the National Wildlife Refuge System by
establishing wildlife conservation as the dominant refuge goal and
compatible wildlife-dependent recreation (including hunting, fishing,
wildlife observation and photography, and environmental education and
interpretation) as priority public uses.

Pollution Control and Abatement

The Federal Government helps achieve the Nation's pollution control
goals by: (1) taking direct action; (2) funding actions by State, local,
and Tribal governments; and, (3) implementing an environmental
regulatory system. The Environmental Protection Agency's (EPA) $7.8
billion in discretionary funds, a $0.9 billion or 13-percent increase
over 1993,

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finances most activities in this area. EPA's discretionary funds have
three major components--the agency's operating program, Superfund, and
water infrastructure financing.
EPA's $3.9 billion operating program provides the Federal funding to
implement most Federal pollution control laws, including the Clean Air,
Clean Water, Resource Conservation and Recovery, Safe Drinking Water,
Toxic Substances Control, and the Food Quality Protection Acts. Spending
for the operating program, which grew 40 percent during this
Administration, represents the backbone of the Nation's efforts to
protect public health and the environment.

Reduction of Air Pollution: Under the Clean Air Act, EPA works to make
the air clean and healthy to breathe by setting standards for ambient
air quality, toxic air pollutant emissions, new pollution sources, and
mobile sources. During the last eight years, the Administration took
major steps to improve the quality of the air we breathe, and helped
reduce the number of metropolitan areas not in compliance with the
current Federal ozone standard from 98 metropolitan areas in 1993 to 37
such areas today (see Chart 6-1). EPA also promulgated new more health-
protective air quality standards for ozone and fine particulate matter
that have yet to take effect.

Late in 1999, EPA established new rules for the sulfur content of
gasoline and for tailpipe emissions from new cars and light duty trucks
that will result in vehicles that are 77 to 95 percent cleaner than
those of today. These measures, to be phased in from 2004 to 2009, may
prevent thousands of premature deaths, tens of thousands of cases of
respiratory illness, and hundreds of thousands of lost work days. Late
in 2000, EPA finalized similar rules for sulfur content in diesel fuel
and for heavy duty truck engine emissions that will also have a major
impact in protecting public health. In past years, EPA has also issued
rules

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to reduce toxic air pollution from chemical plants by 90 percent, and
put in place a program to clear the haze and restore pristine skies to
our national parks.

Water Quality Improvement: Under the Clean Water Act, EPA works to
conserve and enhance the ecological health of the Nation's waters,
through regulation of point source discharges and through multi-agency
initiatives such as the President's Clean Water Action Plan (CWAP). The
CWAP focuses on three remaining challenges for restoring and protecting
the 40 percent of the Nation's waterways not attaining water quality
standards--preventing polluted runoff, protecting public health, and
ensuring community-based watershed management. EPA funding for its
programs included in the CWAP is $712 million in 2001, an increase of 67
percent since 1993. A key component of this total is the $238 million
for EPA's non-point source grant program to States and Tribes, which has
grown more than 375 percent since 1993. Non-point source pollution is
the most significant remaining contribution to water pollution.
Provision of Safe Drinking Water: Today, America's drinking water is
significantly safer than eight years ago. Administration efforts to
strengthen drinking water safety, including amending the Safe Drinking
Water Act in partnership with the Congress, mean that 89 percent of
Americans (as of 1999) get tap water from drinking water systems that
meet the tough Federal standards in effect as of 1994, an increase of
six percentage points since 1994. The Administration also issued
regulations requiring water systems to improve filtration and monitoring
to protect against contamination by harmful microbes, and issued annual
reports to their customers on the safety of their drinking water; and it
proposed tough new standards for high risk contaminants, such as arsenic
and radon.
Reform of Food Quality Protection: In 1996, following through on his
1993 proposal, President Clinton signed legislation to revolutionize 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 includes provisions to better
protect children from pesticide risks. So far, EPA has reassessed 3,551
of the 9,721 existing pesticide tolerances (i.e. allowable residue on
food) to ensure that they meet the statutory standard of ``reasonable
certainty of no harm'', and has worked with pesticide manufacturers to
phase out uses of some of the most high risk pesticides, including
methyl parathion, azinphos-methyl, chlorpyrifos, and diazinon.
Citizen Empowerment: Requiring industries to share information about
chemicals released into the air and water helps empower citizens to
understand the environment around their homes, schools, and work places
and address problems as necessary, creating a powerful incentive for
industry to pollute less. In the decade since the public's right to know
about chemical releases became law, industry's toxic pollution has
fallen nearly 50 percent. The Administration expanded the public's right
to know by doubling the number of chemicals subject to reporting
requirements and by increasing by 30 percent the number of facilities
that must report. In addition, President Clinton required the Federal
Government to begin reporting its chemical releases in 1994, and such
releases have been reduced by 60 percent.
The Administration, in 1998, also established the Chemical Right to
Know Initiative, which includes a highly successful, innovative,
voluntary partnership with industry to develop and provide the public
with basic health data on chemicals released into the environment in
high volume. In addition, EPA greatly expanded the amount of
environmental data available to the public through an initiative to
provide the Nation's 86 largest metropolitan areas with real-time
environmental information.

Proper Management of Wastes: Under the Resource Conservation and
Recovery Act, EPA and authorized States prevent dangerous releases to
the environment of hazardous, industrial nonhazardous, and municipal
solid wastes by requiring proper facility management and cleanup of
environmental contamination at those sites. As of the end of 2000, 62
percent of the Nation's 2,900 hazardous waste management facilities have
approved controls in place to prevent dangerous releases to air, soil,
and groundwater.

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EPA's underground storage tank (UST) program seeks to prevent, detect,
and correct leaks from USTs containing petroleum and hazardous
substances. Regulations issued in 1988 required that substandard USTs
(lacking spill, overfill, and/or corrosion protection) be upgraded,
replaced or closed by December 22, 1998. By the end of 2000, 86 percent
(an estimated 614,000) of active USTs will be in compliance with these
requirements, which improves upon the 65 percent (approximately 554,000)
of then-active USTs in compliance as of the December 22, 1998, deadline.
Over the past decade, more than 1.4 million substandard USTs have been
permanently closed.

Climate Change: In October 1997, President Clinton announced immediate
actions to begin addressing the problem of global climate change, and
included the Climate Change Technology Initiative (CCTI) in the 1999
Budget. In 2001, EPA will devote $123 million to CCTI, $115 million more
than related programs in 1993, focused on the deployment of under-
utilized but existing technologies that reduce greenhouse gas emissions.
By the end of 2000, greenhouse gas emissions are expected to have been
reduced from projected levels by approximately 58 million metric tons of
carbon equivalent per year through EPA partnerships with businesses,
schools, State and local governments, and other organizations.
Accelerated Clean-up of Toxic Waste Sites: During this Administration,
EPA's Superfund program to clean up abandoned hazardous waste sites
became faster, fairer, and less expensive. At the end of 2000, a total
of 757 Superfund sites had been cleaned up--602 of these cleanups
completed since 1993, while only 155 of the sites were cleaned up during
the previous 12 years (see Chart 6-2). EPA projects that two-thirds, or
900, of the Nation's worst toxic waste dumps will be cleaned up by the
end of 2002. EPA's Superfund administrative reforms have been
responsible for saving more than $1.4 billion in future costs by
updating cleanup remedy decisions (to determine whether the same level
of protection could be provided at lower cost) at more than 300 sites.
The Agency also streamlined the liability allocation process to reach
settlement with more than 21,000 small volume waste parties at Superfund
sites.

Spearheaded by this Administration since 1993, EPA's brownfields
program to clean up and redevelop lightly contaminated commercial and
industrial sites has funded over 2,000 site assessments; generated 7,300
jobs, and leveraged $2.8 billion in cleanup and redevelopment funds. The
brownfields tax incentive, enacted as part of the 1997 Taxpayer Relief
Act and extended by the 1999 Tax Relief Extension Act, has leveraged
additional private investment by allowing businesses to deduct certain
cleanup costs on environmentally contaminated lands.

Support for Needed Infrastructure: In 1996, President Clinton signed
into law his proposal for establishing a new Drinking Water State
Revolving Fund (DWSRF), which would complement the existing Clean Water
State Revolving Fund (CWSRF). EPA appropriations provide capitalization
grants to State revolving funds, which make low-interest loans to
municipalities to help pay for wastewater and drinking water treatment
systems required by Federal law. DWSRF funding of $825 million and CWSRF
funding of $1,350 million in 2001 kept the programs on track to achieve
the Administration's goal of capitalizing these funds to the point where
they provide a total of $2.5 billion in average annual assistance for
the long term, even after Federal assistance ends. Funding provided
during this Administration resulted in the CWSRF being capitalized at
more than twice the authorized level for the program. Currently, 99
percent of the population served by community sewerage systems are
served by facilities upgraded to meet secondary treatment or better, as
required by the Clean Water Act.
Financial Assistance to Rural Communities: USDA provides financial
assistance for safe drinking water and adequate wastewater treatment
facilities to rural communities (under 10,000 people). USDA offers this
grant and loan assistance at subsidized interest rates based on the
community's income. Part of those funds go toward USDA's Water 2000
initiative to bring indoor plumbing and safe drinking water to under-
served rural communities. Since 1994, USDA has invested almost $2.5
billion in loans and grants on high-priority Water 2000 projects
nationwide.

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Over the last eight years, the Administration successfully targeted
USDA water and waste water treatment facility funds to underserved rural
communities, leveraged resources from other public and private sources,
and maintained the strong loan repayment record of the Water and Waste
Disposal program. During this Administration, USDA financed 2,600 water
and wastewater treatment facilities serving over 15 million rural
residents. Of these, over 1,950 were Water 2000 projects.

Other Water Resources

The Federal Government builds and manages water projects for
navigation, flood damage reduction, environmental purposes, irrigation
and hydropower generation. The Army Corps of Engineers (DOD) operates
nationwide, while the Department of the Interior's Bureau of Reclamation
operates in the 17 Western States.

Army Corps of Engineers: This Administration's major accomplishments
for the Army Corps of Engineers include:
Increased funding of the Corps' environmental activities by
over $400 million (100 percent) from 1993 to 2001, including
significant funding increases for restoring endangered salmon
on the Columbia and Snake Rivers (in Washington, Oregon, and
Idaho) and to restore the Florida Everglades. The
Administration also successfully fought off legislative riders
proposed by the Congress that would have diminished the Corps'
ability to comply with environmental laws, and secured
authorization of its ``Challenge 21'' program for projects
that combine flood damage reduction with environmental
restoration of the river corridor.
Secured funding to increase the competitiveness of the
Nation's ports, including major efforts to deepen the ports of
New

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York/New Jersey; Los Angeles, California, and Baltimore,
Maryland. The Administration's proposal to create a new Harbor
Services Fund, which the Congress did not adopt, would have
helped ensure a safe and economically competitive port system.
Initiated construction of priority new projects needed for
public health and safety, such as projects to provide
increased flood protection to Grand Forks, North Dakota,
following devastating floods in 1997, and to Sacramento,
California.
Improved the wetlands permit program significantly, including
important changes to ``nationwide'' permits that will help
minimize adverse effects of development on the aquatic
environment, especially in environmentally sensitive areas.

Reinvention of the Bureau of Reclamation: Between 1993 and 2001, the
Administration dramatically changed the primary focus of the Bureau of
Reclamation from water resource ``development'' to water resource
``management''. Instead of focusing on engineering projects to harness
the West's rivers and reclaim its arid lands, Reclamation now
concentrates on managing existing water efficiently and on resolving
water resource conflicts through cooperation among stakeholders. A major
restructuring reduced Reclamation's workforce by about 2,000 employees
(25 percent below 1993), and eliminated nearly 6,500 pages of regulatory
provisions. At the same time, Reclamation continued to supply water and
power efficiently throughout the West, generating more than 40 billion
kilowatt hours of energy each year, delivering 10 trillion gallons of
municipal, rural and industrial water to over 31 million people, and
providing water to one out of every five Western farmers.
Resolution of Western U.S. Water Conflicts: This Administration worked
to foster regional cooperation to resolve conflicts in several Western
river basins. In the Lower Colorado River Basin, it took critical steps
to allow Arizona, California, and Nevada to better utilize the limited
amount of water available from the Colorado River. The Interior
Department, working through the Bureau of Reclamation, completed the
major water supply features of the Central Arizona Project and reached a
conditional settlement of related repayment issues. Interior created a
Federal/State program to help conserve over 100 threatened and
endangered species from Lake Mead to the Mexican border. It also reached
agreement with California on a framework plan to ensure that California
moves towards living within its allocation of Colorado River water. In
the Missouri River Basin, the Department of the Interior worked with the
governors of Colorado, Nebraska, and Wyoming to develop the Platte River
Cooperative Agreement, protecting species in the Middle Platte River
while providing regulatory certainty to water and power interests.
Additionally, Interior moved to resolve longstanding conflicts on water
rights between Native American Tribes and U.S. entities. It advanced or
finalized major Tribal water rights settlements for the Gila River
Indian Community, the San Carlos Apache Tribe, and the Tohono O'odham
Nation in Arizona; the Shivwits Paiute Band in Utah; the Ute Tribes in
Colorado; and, the Chippewa Cree Tribe in Montana.