[House Document 107-262]
[From the U.S. Government Publishing Office]



107th Congress, 2d Session - - - - - - - - - - - House Document 107-262 


 
                REQUESTS FOR FY 2003 BUDGET AMENDMENTS

                               __________

                             COMMUNICATION

                                  FROM

                   THE PRESIDENT OF THE UNITED STATES

                              TRANSMITTING

HIS REQUESTS FOR FY 2003 BUDGET AMENDMENTS FOR THE DEPARTMENTS OF 
  AGRICULTURE, ENERGY, INTERIOR, AND TRANSPORTATION; INTERNATIONAL 
  ASSISTANCE PROGRAMS; AND THE NATIONAL CAPITAL PLANNING COMMISSION




 September 17, 2002.--Referred to the Committee on Appropriations and 
                         ordered to be printed
                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
99-012                    WASHINGTON : 2002

                                           The White House,
                                    Washington, September 13, 2002.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: I ask the Congress to consider the 
enclosed requests for FY 2003 budget amendments for the 
Departments of Agriculture, Energy, Interior, and 
Transportation; International Assistance Programs; and the 
National Capital Planning Commission.
    In total, these amendments would not affect the budgetary 
resources proposed in my FY 2003 Budget.
    The details of these requests are set forth in the enclosed 
letter from the Director of the Office of Management and 
Budget. I concur with his comments and observations.
            Sincerely,
                                                    George W. Bush.
    Enclosure.
                [Estimate No. 24, 107th Cong., 2d Sess.]

                 Executive Office of the President,
                           Office of Management and Budget,
                                Washington, DC, September 12, 2002.
The President,
The White House.
    Submitted for your consideration are requests for FY 2003 
budget amendments for the Departments of Agriculture, Energy, 
Interior (DOI), and Transportation; International Assistance 
Programs; and the National Capital Planning Commission. The 
proposals contained in this transmittal would not affect the 
budgetary resources contained in your FY 2003 Budget.
    As described below and in more detail in the enclosures, 
the requests include the following:
Department of Agriculture
     $60 million is proposed for salary and expense 
costs of the Farm Service Agency for administering and 
implementing programs established under P.L. 107-171, the Farm 
Security and Rural Investment Act of 2002. This increase is 
fully offset by a $45 million reduction to the Small Watershed 
Rehabilitation Program and a $15 million reduction to the Rural 
Strategic Investment Program. This proposal is necessary to 
reflect the increased costs of administering and implementing 
the programs in P.L. 107-171 not anticipated in the FY 2003 
Budget.
Department of Energy
     $10 million is proposed in the Energy Conservation 
account, fully offset by a corresponding reduction in the 
Fossil Energy Research and Development account. This proposal 
would establish a competitive solicitation program in support 
of your National Climate Change Technology Initiative (NCCTI). 
In total, the proposal would provide $20 million for the NCCTI 
program funded by $10 million from the Fossil Energy Research 
and Development account, and an additional $10 million 
redirected from the Industry Sector program within the Energy 
Conservation account.
Department of Transportation
     Language is proposed to provide $5 million for the 
Federal Highway Administration from the Transportation 
Infrastructure Finance and Innovation program to conduct a 
study, including necessary planning and environmental reviews 
and engineering designs, to examine the impact of the 
Pennsylvania Avenue and E Street closures to traffic in the 
vicinity of the White House and to develop transportation 
alternatives to alleviate congestion in that area.
     Language is proposed to allow the Secretary of 
Transportation flexibility to fund the appropriate mix of 
transportation projects for the Borough of Manhattan in 
response to the September 11, 2001, terrorist attacks.
International Assistance Programs
     Language is proposed to allow the Administration 
to complete modification of loans and guarantees for Pakistan 
and Jordan.
     Language is also proposed to provide authorization 
to implement a new, no subsidy-cost Foreign Military Financing 
15-year loan to the government of Poland for the purchase of 48 
F-16 aircraft, weapons, and related logistics support. As a 
member of NATO, Poland is an essential component in our effort 
to strengthen the Trans-Atlantic Alliance and promote a robust 
round of enlargement at the NATO summit in Prague.
The National Capital Planning Commission/DOI
     $6.1 million is proposed for the National Capital 
Planning Commission for expenses related to the planning, 
design and initial construction activities of the project at 
Pennsylvania Avenue in front of the White House. The proposed 
amendment would provide $2.8 million to the Commission to 
complete the design of Pennsylvania Avenue in front of the 
White House, as proposed in the Commission's Urban Design and 
Security Plan. The amendment would also provide $0.8 million 
for structural testing of streetscape components and $2.5 
million for initial surveying and utility relocation. These 
last two activities would not be conducted by the National 
Capital Planning Commission, but the funds would be transferred 
to the Federal Highway Administration, which will be the 
construction manager for the project.
     To offset the $6.1 million described above, 
reductions are proposed in three accounts within the DOI that 
are projected to have amounts of unobligated funds carried into 
FY 2003. These reductions would not affect program goals or 
objectives in these agencies.
    I have carefully reviewed these proposals and am satisfied 
that they are necessary at this time. Therefore, I join the 
heads of the affected Departments and agencies in recommending 
that you transmit the amendments to the Congress.
            Sincerely,
                                  Mitchell E. Daniels, Jr.,
                                                          Director.
    Enclosures.

                       DEPARTMENT OF AGRICULTURE


                          Farm Service Agency


                         SALARIES AND EXPENSES

FY 2003 Budget Appendix Page: 102
FY 2003 Pending Request: $1,062,712,000
Proposed Amendment: $60,000,000
Revised Request: $1,122,712,000

    This request would provide an additional $60 million in 
funds for salary and expense costs of the Farm Service Agency 
for administering and implementing programs established under 
the Farm Security and Rural Investment Act of 2002 (the ``Farm 
Bill''). This increase is fully offset by reductions to the 
Small Watershed Rehabilitation Program and the Rural Strategic 
Investment Program, as proposed in an accompanying budget 
amendment.
    This proposal is necessary to reflect the increased costs 
of administering and implementing the Farm Bill programs not 
anticipated in the FY 2003 Budget. This additional funding 
would ensure that programs are delivered to customers in a 
timely and efficient fashion.
    This proposal would increase FY 2003 outlays by $54 
million.
                                ------                                


                       DEPARTMENT OF AGRICULTURE


                     TITLE VII--GENERAL PROVISIONS

FY 2003 Budget Appendix Page: 195-201
FY 2003 Pending Request: --
Proposed Amendment: Language
Revised Request: --

    (In the appropriations language under the above heading, 
insert after Sec. 722 the following new provisions:)

    Sec. 723. Funds provided under subsection (h)(1)(A) of 
section 14 of the Watershed Protection and Flood Protection Act 
(16 U.S.C. 1012), as amended, are hereby cancelled.
    Sec. 724. Section 385E of the Consolidated Farm and Rural 
Development Act (7 U.S.C. et seq.), as amended, is further 
amended--
          (1) in subsection (a), by striking ``$100,000,000'' 
        and inserting ``$85,000,000''; and
          (2) in subsection (b)(2), by striking ``$87,000,000'' 
        and inserting ``$72,000,000''.
    Sec. 723 would cancel $45 million in FY 2003 mandatory 
funding for the Natural Resources Conservation Service for the 
Small Watershed Rehabilitation Program. In an accompanying 
proposal, the $45 million would be reallocated to the Farm 
Service Agency.
    Sec. 724 would reduce funding made available by the Farm 
Security and Rural Investment Act of 2002 for the Rural 
Strategic Investment Program by $15 million. In an accompanying 
proposal, the $15 million would also be reallocated to the Farm 
Service Agency.
    Taken together, these amendments would decrease FY 2003 
outlays by $32 million.
                                ------                                


                          DEPARTMENT OF ENERGY


                            Energy Programs


                 FOSSIL ENERGY RESEARCH AND DEVELOPMENT

FY 2003 Budget Appendix Page: 400
FY 2003 Pending Request: $534,155,000
Proposed Amendment: -$10,000,000
Revised Request: $524,155,000

    This proposal would reduce the pending request for the 
Fossil Energy Research and Development account for the 
Sequestration (R&D) program by $10 million. In an accompanying 
proposal, the $10 million would be provided to the Energy 
Conservation account, to support the Administration's National 
Climate Change Technology Initiative competitive solicitation 
program. This program would fund R&D projects to explore novel 
technologies or technical approaches that could contribute in 
significant ways to future reductions or avoidances of so-
called ``greenhouse gas'' emissions, and/or their capture and 
sequestration (permanent storage).
    This proposal would not impact the current Sequestration 
R&D program. Even with the $10 million reduction, the growth in 
the program's budget request would be 37 percent over the FY 
2002 level.
    This amendment would decrease outlays in this account by $4 
million.
                                ------                                


                          DEPARTMENT OF ENERGY


                            Energy Programs


                          ENERGY CONSERVATION

FY 2003 Budget Appendix Page: 402
FY 2003 Pending Request: $904,304,000
Proposed Amendment: $10,000,000
Revised Request: $914,304,000

    (In the appropriations language under the above heading, 
delete ``$904,304,000'' and substitute $914,304,000; and insert 
the following before the colon after ``until expended'', of 
which $20,000,000 shall be used to support research and 
development contracts on technological approaches to reduce, 
avoid, or capture greenhouse gas emissions, to be awarded 
pursuant to competitive solicitations.)
    This proposal would provide $10 million to the Energy 
Conservation account to establish a competitive solicitation 
program in support of the President's National Climate Change 
Technology Initiative (NCCTI). The proposal would also redirect 
$10 million in this account from Industry Sector activities ($8 
million from the Industries of the Future (Specific) subprogram 
and $2 million from the Cooperative Programs with States 
subprogram) to provide a total of $20 million for the NCCTI 
competitive solicitation program.
    The competitive solicitation is intended to complement and 
enrich the existing research and development portfolio and help 
ensure that all possible technology options are explored. 
Projects funded by the NCCTI competitive solicitation program 
would be consistent with projects typically supported by the 
Department's Energy Conservation account (e.g., a new approach 
to increasing the energy efficiency of a common industrial 
process), Energy Supply account (e.g., a renewable energy or 
nuclear energy project), or the Fossil Energy account (e.g., a 
new approach to sequestering carbon emissions from power 
plants). The NCCTI competitive solicition program would require 
these diverse types of projects to compete for funding based on 
their potential to reduce, avoid, or capture greenhouse gas 
emissions, which would foster novel concepts to address climate 
change that may not comport with established research and 
development program plans.
    The competitive solicitation program would be administered 
by the Office of Energy Efficiency and Renewable Energy. The 
Department would make competitive awards based on the 
recommendations of the NCCTI Interagency Working Group, who 
would seek external peer evaluation of proposals for advice on 
project selection.
    The increase of $10 million in budget authority would be 
offset by a corresponding decrease in the Fossil Energy 
Research and Development account, as proposed in an 
accompanying budget amendment.
    This amendment would increase FY 2003 outlays in this 
account by $3 million.
                                ------                                


                       DEPARTMENT OF THE INTERIOR


                       Fish and Wildlife Service


            COOPERATIVE ENDANGERED SPECIES CONSERVATION FUND

FY 2003 Budget Appendix Page: 563
FY 2003 Pending Request: $91,000,000
Proposed Amendment: -$2,100,000
Revised Request: $88,900,000

    This proposal would reduce the pending request for the Fish 
and Wildlife Service's Cooperative Endangered Species 
Conservation Fund by $2.1 million. The account is projecting 
over $100 million in unobligated balances to be carried over 
from FY 2002 to FY 2003. The proposed reduction would not 
affect program goals or objectives.
    This amendment would not affect FY 2003 outlays.
                                ------                                


                       DEPARTMENT OF THE INTERIOR


                         National Park Service


                   CONSTRUCTION AND MAJOR MAINTENANCE

FY 2003 Budget Appendix Page: 572
FY 2003 Pending Request: $323,901,000
Proposed Amendment: -$2,000,000
Revised Request: $321,901,000

    This proposal would reduce the pending request for the 
National Park Service's Construction and Major Maintenance 
account by $2.0 million. This amount would be derived from the 
$12.5 million requested for the employee housing replacement 
program, which is expected to carry over $20 million in 
unobligated balances from FY 2002 into FY 2003. The reduction 
would not affect program goals or objectives.
    This amendment would not affect FY 2003 outlays.
                                ------                                


                       DEPARTMENT OF THE INTERIOR


                        Bureau of Indian Affairs


                      OPERATION OF INDIAN PROGRAMS

FY 2003 Budget Appendix Page: 579
FY 2003 Pending Request: $1,858,986,000
Proposed Amendment: -$2,000,000
Revised Request: $1,856,986,000

    This proposal would reduce the pending request for the 
Bureau of Indian Affair's (BIA's) Operations of Indian Programs 
(OIP) account by $2.0 million. OIP funds most of BIA's non-
construction activities, including education, social welfare, 
and natural resource management. The account received $1.8 
billion in FY 2002, of which $436 million is forward funding 
for the school year beginning in September 2002. The Department 
of the Interior estimates that this account will carry over 
significant non-education unobligated balances from FY 2002 
into FY 2003. This reduction would not affect program goals or 
objectives.
    This amendment would not affect FY 2003 outlays.
                                ------                                


                      DEPARTMENT OF TRANSPORTATION


                     Federal Highway Administration


                          FEDERAL-AID HIGHWAYS

FY 2003 Budget Appendix Page: 744-745
FY 2003 Pending Request: --
Proposed Amendment: $5,000,000
Revised Request: --

    (In the appropriations language under the above heading, 
insert the following before the period at the end:)

: Provided further, That from the funds available pursuant to 
section 188 of title 23, U.S.C., $5,000,000 shall be available 
until expended to conduct transportation planning studies 
environmental studies, and engineering design to alleviate 
congestion resulting from street closures in the District of 
Columbia in the vicinity of the White House.
    This proposal would provide $5 million for the Federal 
Highway Administration from the Transportation Infrastructure 
Finance and Innovation program to conduct a study, including 
necessary planning and environmental reviews and engineering 
designs, to examine the impact of the Pennsylvania Avenue and E 
Street closures to traffic in the vicinity of the White House 
and to develop transportation alternatives to alleviate 
congestion in that area. The study would examine the 
alternatives of constructing a tunnel under E Street and/or 
Pennsylvania Avenue; transit options, including a mass transit 
``connector''; and traffic management options related to the 
street closures due to increased security concerns.
    This amendment would not affect FY 2003 outlays.
                                ------                                


                      DEPARTMENT OF TRANSPORTATION


                     TITLE III--GENERAL PROVISIONS

FY 2003 Budget Appendix Page: 787-794
FY 2003 Pending Request: --
Proposed Amendment: Language
Revised Request: --

    (In the appropriations language under the above heading, 
insert after Sec. 225 the following new section:)

    Sec. 336. From funds made available under the heading, 
``Capital Investment Grants,'' Federal Transit Administration, 
in Public Law 107-206, the Secretary of Transportation is 
authorized to transfer such sums as may be necessary to 
``Federal-aid Highways,'' Federal Highway Administration, for 
surface transportation projects serving the Borough of 
Manhattan, eligible under section 133(b) of title 23, United 
States Code: Provided, That the Federal share for any such 
project shall be 100 percent: Provided further, That these 
projects must be developed and selected in accordance with the 
comprehensive transit and public transportation plan adopted by 
the locally designated planning and decision-making body.
    This proposal would allow the Secretary of Transportation 
flexibility to fund the approximate mix of transportation 
projects for the Borough of Manhattan in response to the 
September 11, 2001, terrorist attacks. The transportation 
system, including transit and roads, were badly damaged by the 
attacks. As local planning agencies and transportation 
providers continue to refine the rebuilding plan for lower 
Manhattan, several transportation projects may require 
different funding levels. This amendment would allow the 
Secretary to alter the funding mix among eligible highway and 
transit projects.
    This amendment would not affect FY 2003 outlays.
                                ------                                


                   INTERNATIONAL ASSISTANCE PROGRAMS


                   International Security Assistance


                         ECONOMIC SUPPORT FUND

FY 2003 Budget Appendix Page: 963
FY 2003 Pending Request: $2,490,000,000
Proposed Amendment: Language
Revised Request: $2,490,000,000

    (In the appropriations language under the above heading, 
after the phrase, ``: Provided, That'', insert the following:)

not to exceed $200,000,000 of the funds appropriated under this 
heading in this Act for foreign operations, export financing, 
and related programs, may be made available for the cost, as 
defined in section 502 of the Congressional Budget Act of 1974, 
of modifying direct loans and guarantees for Pakistan: Provided 
further, That not to exceed $15,000,000 of the funds 
appropriated under this heading in P.L. 107-206, the 
Supplemental Appropriations Act for Further Recovery From and 
Response To Terrorist Attacks on the United States, FY 2002, 
may be made available for the cost, as defined in section 502 
of the Congressional Budget Act of 1974, of modifying direct 
loans and guarantees for Jordan: Provided further, That.
    This proposal would allow the Administration to complete 
modification of loans and guarantees for Pakistan and Jordan, 
consistent with the President's commitment to provide 
assistance to these countries.
    This amendment would not affect FY 2003 outlays.
                                ------                                


                   INTERNATIONAL ASSISTANCE PROGRAMS


                   International Security Assistance


                   FOREIGN MILITARY FINANCING PROGRAM

FY 2003 Budget Appendix Page: 964-965
FY 2003 Pending Request: $4,107,200,000
Proposed Amendment: Language
Revised Request: $4,107,200,000

    (In the appropriations language under the above heading, 
insert the following new paragraph after the first paragraph:)

    During fiscal year 2003, direct loans under section 23 of 
the Arms Export Control Act may be made available for Poland, 
gross obligations for the principal amounts of which shall not 
exceed $3,800,000,000: Provided, That such loan shall be repaid 
in not more than fifteen years, including a grace period of up 
to eight years on repayment of principal: Provided further, 
That no funds are available for the subsidy costs of these 
loans: Provided further, That the Government of Poland shall 
pay the full cost, as defined in section 502 of the Federal 
Credit Reform Act of 1990, as amended, associated with the 
loans, including the cost of any defaults: Provided further, 
That any fees associated with these loans shall be paid by the 
Government of Poland prior to any disbursement of loan 
proceeds: Provided further, That no funds made available to 
Poland under this or any other Act may be used for payment of 
any fees associated with these loans.
    This proposal would provide appropriate legislative 
authorization to implement a new, no subsidy-cost $3.8 billion 
Foreign Military Financing (FMF) 15-year loan to the government 
of Poland for the purchase of 48 F-16 aircraft, weapons, and 
related logistics support. The FMF loan financing is essential 
to ensure that Poland is able to purchase the combat-proven F-
16 aircraft, rather than European competitors. Poland's 
acquisition of the F-16 would greatly improve the 
interoperability of its air force with NATO and the U.S., an 
important objective of the United States for Central Europe. 
The F-16 acquisition would also promote stronger strategic ties 
between our militaries and our aircraft industries. As a valued 
partner in NATO, Poland is essential to our efforts to 
strengthen the Trans-Atlantic Alliance and promote a robust 
round of enlargement at the NATO summit in Prague.
    Under the proposal, the government of Poland would assume 
all the costs or fees associated with the loan, including any 
associated with non-payment exposure risks. Thus, there will be 
no U.S. subsidy costs, and this request entails no new 
appropriations.
    This amendment would not affect FY 2003 outlays.
                                ------                                


                  NATIONAL CAPITAL PLANNING COMMISSION


                  PENNSYLVANIA AVENUE RESTORATION FUND

FY 2003 Budget Appendix Page: 1148
FY 2003 Pending Request: --
Proposed Amendment: $6,100,000
Revised Request: $6,000,000

    (Insert the above heading and the appropriations language 
that follows immediately after the material under the heading 
``Salaries and Expenses'':)

    For planning and design activities and initiation of 
construction of the project at Pennsylvania Avenue in front of 
the White House, as proposed in the National Capital Planning 
Commission's Urban Design and Security Plan, $6,100,000, to 
remain available until September 30, 2005, of which $2,800,000 
is for planning and design of the project: Provided, That 
$3,300,000 shall be transferred to ``Federal-aid Highways,'' 
Federal Highway Administration, to conduct structural testing 
of streetscape components and initial surveying and utility 
relocation for the project.
    This proposal would provide $6.1 million for the National 
Capital Planning Commission for expenses related to the 
planning, design and initial construction activities of the 
project at Pennsylvania Avenue in front of the White House. The 
proposed amendment would provide $2.8 million to the Commission 
to complete the design of Pennsylvania Avenue in front of the 
White House as proposed in the Commission's Urban Design and 
Security Plan. The proposal would also provide $800,000 for 
structural testing of streetscape components and $2.5 million 
for initial surveying and utility relocation. These last two 
activities would not be conducted by the National Capital 
Planning Commission, but would be transferred to the Federal 
Highway Administration, which will be the construction manager 
for the project.
    The proposed increase in budget authority would be offset 
by corresponding decreases in the Bureau of Indian Affairs' 
Operations of Indian Programs account, the Fish and Wildlife 
Service's Cooperative Endangered Species Fund account, and the 
National Park Service's Construction account, as proposed in 
accompanying budget amendments.
    This amendment would increase FY 2003 outlays by $3.7 
million.

                                  
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