[Senate Hearing 108-650]
[From the U.S. Government Publishing Office]
S. Hrg. 108-650
Senate Hearings
Before the Committee on Appropriations
_______________________________________________________________________
Energy and
Water Development
Appropriations
Fiscal Year
2005
108th CONGRESS, SECOND SESSION
H.R. 4614
DEPARTMENT OF DEFENSE--CIVIL
DEPARTMENT OF ENERGY
DEPARTMENT OF THE INTERIOR
NONDEPARTMENTAL WITNESSES
Energy and Water Development Appropriations, 2005 (H.R. 4614)
S. Hrg. 108-650
ENERGY AND WATER DEVELOPMENT APPROPRIATIONS FOR FISCAL YEAR 2005
=======================================================================
HEARINGS
before a
SUBCOMMITTEE OF THE
COMMITTEE ON APPROPRIATIONS UNITED STATES SENATE
ONE HUNDRED EIGHTH CONGRESS
SECOND SESSION
on
H.R. 4614
AN ACT MAKING APPROPRIATIONS FOR ENERGY AND WATER DEVELOPMENT FOR THE
FISCAL YEAR ENDING SEPTEMBER 30, 2005, AND FOR OTHER PURPOSES
__________
Department of Defense--Civil
Department of Energy
Department of the Interior
Nondepartmental witnesses
__________
Printed for the use of the Committee on Appropriations
Available via the World Wide Web: http://www.access.gpo.gov/congress/
senate
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__________
COMMITTEE ON APPROPRIATIONS
TED STEVENS, Alaska, Chairman
THAD COCHRAN, Mississippi ROBERT C. BYRD, West Virginia
ARLEN SPECTER, Pennsylvania DANIEL K. INOUYE, Hawaii
PETE V. DOMENICI, New Mexico ERNEST F. HOLLINGS, South Carolina
CHRISTOPHER S. BOND, Missouri PATRICK J. LEAHY, Vermont
MITCH McCONNELL, Kentucky TOM HARKIN, Iowa
CONRAD BURNS, Montana BARBARA A. MIKULSKI, Maryland
RICHARD C. SHELBY, Alabama HARRY REID, Nevada
JUDD GREGG, New Hampshire HERB KOHL, Wisconsin
ROBERT F. BENNETT, Utah PATTY MURRAY, Washington
BEN NIGHTHORSE CAMPBELL, Colorado BYRON L. DORGAN, North Dakota
LARRY CRAIG, Idaho DIANNE FEINSTEIN, California
KAY BAILEY HUTCHISON, Texas RICHARD J. DURBIN, Illinois
MIKE DeWINE, Ohio TIM JOHNSON, South Dakota
SAM BROWNBACK, Kansas MARY L. LANDRIEU, Louisiana
James W. Morhard, Staff Director
Lisa Sutherland, Deputy Staff Director
Terrence E. Sauvain, Minority Staff Director
------
Subcommittee on Energy and Water Development
PETE V. DOMENICI, New Mexico, Chairman
THAD COCHRAN, Mississippi HARRY REID, Nevada
MITCH McCONNELL, Kentucky ROBERT C. BYRD, West Virginia
ROBERT F. BENNETT, Utah ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana PATTY MURRAY, Washington
LARRY CRAIG, Idaho BYRON L. DORGAN, North Dakota
CHRISTOPHER S. BOND, Missouri DIANNE FEINSTEIN, California
TED STEVENS, Alaska (ex officio)
Professional Staff
Tammy Perrin
Scott O'Malia
Drew Willison (Minority)
Nancy Olkewicz (Minority)
Roger Cockrell (Minority)
Administrative Support
Erin McHale
C O N T E N T S
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Wednesday, March 3, 2004
Page
Department of Energy:
Office of Energy Efficiency and Renewable Energy............. 1
Office of Science............................................ 15
Office of Nuclear Energy, Science and Technology............. 23
Tuesday, March 23, 2004
Department of Energy: National Nuclear Security Administration... 63
Wednesday, March 31, 2004
Department of Energy:
Office of Environmental Management........................... 135
Office of Environment, Safety and Health..................... 159
Office of Civilian Radioactive Waste Management.............. 168
Tuesday, April 20, 2004
Department of the Interior: Bureau of Reclamation................ 207
Department of Defense--Civil: Department of the Army: Corps of
Engineers--Civil............................................... 257
Nondepartmental Witnesses
Department of Defense--Civil: Department of the Army: Corps of
Engineers--Civil............................................... 287
Department of the Interior: Bureau of Reclamation................ 398
Department of Energy............................................. 449
ENERGY AND WATER DEVELOPMENT APPROPRIATIONS FOR FISCAL YEAR 2005
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WEDNESDAY, MARCH 3, 2004
U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
The subcommittee met at 10:08 a.m., in room SD-138, Dirksen
Senate Office Building, Hon. Pete V. Domenici (chairman)
presiding.
Present: Senators Domenici, Craig, Reid, and Murray.
DEPARTMENT OF ENERGY
Office of Energy Efficiency and Renewable Energy
STATEMENT OF DAVID GARMAN, ASSISTANT SECRETARY
opening statement of senator pete v. domenici
Senator Domenici. The committee will come to order. Thank
you everyone for coming. It's interesting to note that, of no
consequence other than it's interesting, this is the first
meeting of the Subcommittee on Energy and Water and we haven't
yet seen impact that the budget's going to have on this
subcommittee's ability to do its work, but it's pretty obvious
that it won't be a bed of roses, so I regret to tell you that I
don't think there's any chance that very many of the
discretionary programs are going to be funded with any
increases. Most will get some cuts.
But today we're going to review the Department of Energy's
2005 budget request, the Office of Energy Efficiency and
Renewable Energy, the Office of Science, and the Office of
Nuclear Energy, and we will receive testimony from David
Garman, Assistant Secretary, Office of Energy Efficiency. I'd
like to thank you for joining us. And Dr. Raymond Orbach,
Director of the Office of Science, and William Magwood,
Director of the Office of Nuclear Energy. I appreciate your
attendance today and look forward to your testimony.
The budget request for Renewable Energy provides $374
million, an increase of $4.3 million. DOE--that's 1.2 percent--
DOE's budget provides $95 million for hydrogen technology, that
is the basic research. It's a $13 million increase and overall
the President proposes spending $228 million on hydrogen R&D,
multi-agency effort to diversify energy supply.
Office of Science, the administration requests $3.4
billion, a reduction of $78 million, 2 percent below last
year's level. Science reports specifically stated that flat
funding for the office should be reversed. Unfortunately, that
language was ignored.
Dr. Orbach, I understand the Secretary of Energy released a
20-year science plan late last year which will serve as a road
map for science research. I appreciate your efforts to focus on
these priorities and look forward to learning more about this
proposal.
For the Office of Nuclear Energy, the budget provides $409
million, that's a $4.7 million increase, 1.2 percent. I'm
disappointed to learn that nuclear R&D budget has been cut by
$34 million, a 26 percent reduction. If I have anything to do
about it, I'll put that money back, but I don't know how to do
it yet.
The budget also cuts nuclear energy technology by 50
percent. I'm skeptical that the Department is serious about its
commitment to deploy a new nuclear reactor, especially if you
put a date alongside it of 2010.
I'm discouraged by the fact that the advanced fuel concepts
initiative was cut. The objective of this program is to develop
a proliferation-resistant nuclear fuel. In light of the recent
news regarding the sale of nuclear materials, the last and
biggest being Pakistan's top nuclear scientist, I believe more
should be done to protect against nuclear proliferation, not
less. I think we're beginning to make people understand that in
the administration. The President spoke to it, Secretary Powell
has alluded to it, but nonetheless you can't do this without
money, and I'm hopeful that America will take the international
lead in this regard.
PREPARED STATEMENT
I'm now going to turn to my good friend who's been working
with me on this subcommittee either as chairman or ranking
member for many years, Senator Reid. I'd like you to make your
opening statement and then we will proceed in order to Mr.
Garman, Dr. Orbach, and Mr. Magwood.
[The statement follows:]
Prepared Statement of Senator Pete V. Domenici
Today, the subcommittee will review the Department of Energy's
fiscal year 2005 budget request for the Office of Energy Efficiency and
Renewable Energy, the Office of Science, and the Office of Nuclear
Energy.
We will receive testimony from David Garman, Assistant Secretary,
Office of Energy Efficiency and Renewable Energy, Dr. Raymond Orbach,
Director, Office of Science, and William Magwood, Director, Office of
Nuclear Energy.
I appreciate your attendance today and look forward to your
testimony.
The budget request for Renewable Energy provides $374 million--an
increase of just $4.3 million (+1.2 percent). The DOE budget provides
$95 million for hydrogen technology research, a $13 million increase.
Overall, the President proposes spending $228 million in fiscal year
2005 on hydrogen R&D in a multi-agency effort to diversify our Nation's
energy supply.
For the Office of Science, the administration has requested $3.4
billion--a reduction of $78 million or 2 percent below last year's
level. The Senate report specifically stated that flat funding for the
Office of Science should be reversed--unfortunately, that language was
ignored.
Dr. Orbach, I understand the Secretary of Energy released the 20-
year Science Plan late last year, which will serve as a road map for
DOE's science research. I appreciate your efforts to focus the
Department's priorities and I look forward to learning more about this
proposal.
For the Office of Nuclear Energy, the budget provides $409
million--an increase of $4.7 million above fiscal year 2004 (+1.2
percent).
I am disappointed to learn that the Nuclear R&D budget has been cut
by $34 million (-26 percent). The budget entirely eliminates funding
for the Nuclear Energy Plant Optimization and the Nuclear Energy
Research Initiative.
This budget also cuts the Nuclear Energy Technologies by 50
percent. As a result of these cuts, I am skeptical that the Department
is serious about its commitment to deploy a new nuclear reactor by
2010.
I am also discouraged by the fact that the Advanced Fuel Concepts
Initiative was cut by 30 percent. The objective of this program is to
develop a proliferation-resistant nuclear fuel. In light of the recent
news regarding the sale of nuclear material by Pakistan's top nuclear
scientist; I believe more should be done to protect against nuclear
proliferation.
It is clear from these lean budgets that we will face numerous
challenges this year. Nevertheless, I look forward to working with
Senator Reid to develop the best bill we can.
I will now turn to Senator Reid or any other Senator who would like
to make a brief opening statement. Thereafter, we will hear from Mr.
Garman, Dr. Orbach, and Mr. Magwood.
STATEMENT OF SENATOR HARRY REID
Senator Reid. Thank you very much, Mr. Chairman. You and I
have worked together, a long, long time together on this
committee, subcommittee, I'm sorry, and I enjoy working on this
bill with you. I think the enjoyment will have been better in
the past than this year because of the tremendous constraints
on the budget. It's been frankly a lot of fun in years past,
but I don't see that happening this year, but with our
friendship we'll work our way through this.
Today is a first, as you have indicated, in a series of
five budget oversight hearings for our subcommittee. Next week,
a week from today, the subcommittee will hear testimony from
the Bureau of Reclamation and the Corps of Engineers, which is
so vitally important to the entire western half of the United
States.
Today we're going to hear from the witnesses as you've
outlined. I've reviewed all your statements and they cover some
of my most--some of my favorite subjects, alternative energy
and all these things that are so important to the future of our
country.
I'm going to--we have a big tax bill coming up in 20
minutes so I have to leave soon, go back and work on that on
the floor, but I appreciate everyone being here. I have a
series of questions for each of the witnesses, Mr. Chairman,
and I would ask consent of the subcommittee that I be allowed
to submit those in writing and that they respond to them within
the next 10 days in writing.
Senator Domenici. Yes, sir.
Senator Reid. And the answers go to every member of the
subcommittee.
Senator Domenici. I'll submit them on your behalf and let
me say to you, if you have any trouble with the time, I don't
expect you to just let it pass. I expect you to tell us why, if
you had to go find something or whatever then let us know. Go
ahead, Senator.
OFFICE OF SCIENCE FISCAL YEAR 2005 BUDGET REQUEST
Senator Reid. I've reviewed the budget for the Office of
Science, and by and large I suspect that you share some of the
same frustrations as I have and you won't articulate them today
and I understand why you can't. I'm concerned that such a
budget, if enacted, will not allow you to move forward
aggressively on enough major initiatives, including the ITER
Project.
The request also strikes me as inadequate in terms of
allowing you to maintain and improve your laboratory facilities
nationwide. My overall impression is that the request is weak
and I really believe it's short-sighted. I hope we'll be able
to improve on that this year before we complete our work.
As I've said many times before, funding for research in the
hard sciences is one of the very best and most appropriate
investments taxpayer dollars can be made for this country. Few
things that we do here can make our country safer or more
secure than maintaining a scientific and technological edge.
For many years now, Chairman Domenici and I have watched as
the last two administrations have sent ever-escalating budget
requests up here for National Institutes of Health that have
far outstripped the increase requests of the Office of Science.
The imbalance between funding for the physical sciences and the
biological sciences was getting to be staggering, particularly
because both disciplines rely on each other so much. I think
this is short-sighted in the long term.
I'm pleased with the work that you're doing on genomics and
with the very impressive pace of the nanotechnology. Drew
Willison of my staff and Tammy Perrin of Senator Domenici's
staff visited the Lawrence Berkeley National Lab last month and
were surprised at the rapid progress the lab is making on the
molecular foundry.
ENERGY EFFICIENCY AND RENEWABLE ENERGY
You've been on the job now for nearly 2 years and I hope
you're enjoying your time in one of the greatest jobs our
Federal Government has to offer. Mr. Garman, as you know, I am
a big supporter of your programs and believe that the National
Renewable Energy Laboratory in Golden is one of the premiere
labs in all the DOE if not the world. While I certainly hope we
can add some resources to your budget, I realize that the most
important thing Congress can do in the short term for the
renewable energy industry is to get a series of productive tax
credits into place and extend some of the others. Hopefully our
body will be able to get that done this year and we may be able
to get it done on this bill this week.
For the last few years, you've funded a competitive project
in Nevada that has worked very well. As you know, my State has
tremendous solar and geothermal potential and the seed money
for the Department--that the Department has provided--allows
Nevada and its universities and research organization
industries to work together to prove out technology and
techniques.
NUCLEAR ENERGY
Mr. Magwood, as you know, I've been very supportive of your
programs during my years as chairman and ranking member of this
subcommittee. I'm supportive even though it sometimes puts me
in an awkward spot due to that very visible word, nuclear in
your office's title. I support strong budgets for you because,
as I mentioned earlier, long-term stable investments in
scientific research and development is what makes our Nation
strong.
My biggest problem with nuclear power comes, of course, at
the end of the fuel cycle, and we've heard that so many times
that I even get tired of myself saying it. To the extent that
there will be an ongoing waste stream, it will be investments
in science that solves all or most of those disposal problems,
and you're involved in that and I appreciate that.
That's why I've supported your advanced fuel cycle
initiative over the years. I'm a little concerned this year
that your support for this program seems to have eroded, but I
suspect that Chairman Domenici and I can help you un-erode it
as we move through this budget.
PREPARED STATEMENT
I feel confident that Senator Craig and Domenici have
thoughts on the ongoing transition of the laboratory in Idaho
to the Nation--this is to the Nation's nuclear energy
laboratory, so I'll not address that issue at this time, other
than to say that I'm far more interested in an aggressive R&D
budget that benefits the Nation as a whole than I am in a long,
slow, drawn-out transition.
I thank everyone for appearing today and appreciate the
patience of everyone listening to my long statement.
[The statement follows:]
Prepared Statement of Senator Harry Reid
Thank you, Mr. Chairman. By my count you and I are beginning our
eighth Energy and Water appropriations cycle together. As you know I
enjoy working on this bill with you and greatly appreciate your
friendship and support throughout our many years together here in the
Senate.
Today is the first in a series of five budget oversight hearings
for our subcommittee. Next Wednesday, the subcommittee will hear
testimony from the Bureau of Reclamation and the U.S. Army Corps of
Engineers.
Today we will hear from three witnesses: Dr. Raymond Orbach, the
Director of DOE's Office of Science; Mr. Bill Magwood, the Director of
the Office of Nuclear Energy; and Mr. Dave Garman, the Assistant
Secretary for the Office of Energy Efficiency and Renewable Energy.
Good afternoon, gentlemen, thank you for coming. Senator Domenici
and I both appreciate you taking the time to join us. My duties on the
Floor may require me to depart early today, but my staff will remain
here and will report back on what transpires. I do have a series of
questions for each of you and would ask, at this time, that they be
made a part of the record. I hope each of you can respond quickly
because the Chairman and I rely on your answers to help us make
informed funding decisions. We are likely to be on an accelerated
schedule this year so timely responses are critical.
I plan to keep my comments very brief today, but do want to
highlight several issues concerning the budget requests for each of the
three DOE offices represented today.
Dr. Orbach, I have reviewed the budget for the Office of Science
and, by and large, I suspect that you and I share some of the same
frustrations with it. The administration's budget request provides your
office with a 2 percent cut this year. I am concerned that such a
budget, if enacted, will not allow you to move forward aggressively
enough on a number of major initiatives, including the ITER project.
The request also strikes me as inadequate in terms of allowing you to
maintain and improve your laboratory facilities nationwide.
My overall impression is that the request is weak and shortsighted.
I hope that we are able to improve on that a little bit before
Congress completes work this year. As I have said many times before,
funding for research in the hard sciences is one of the very best and
most appropriate investments of taxpayer dollars that Congress can
make. Very few things that we do here can make our country safer or
more secure than maintaining a scientific and technological edge.
For many years now Chairman Domenici and I have watched as the last
two administrations have sent ever-escalating budget requests up here
for the National Institutes of Health that have far outstripped the
increases requested for the Office of Science. The imbalance between
funding for the physical science and the biological sciences was
getting to be staggering, particularly because both disciplines rely on
each other so much.
Again, over the long-term, this is very short-sighted.
That said, I am very pleased with the work you are doing on
genomics and with the very impressive pace of the nanotechnology
program. Drew Willison of my staff and Tammy Perrin of Senator
Domenici's staff visited Lawrence-Berkeley National Laboratory last
month and were surprised at the rapid progress the lab is making on the
Molecular Foundry.
You have been on the job now for nearly 2 years and I hope you are
enjoying your time in one of the greatest jobs our Federal Government
has to offer.
Mr. Garman, as you know, I am a big supporter of your programs and
believe that the National Renewable Energy Laboratory in Golden is one
of the premiere labs in all of DOE. While I certainly hope we can add
some resources to your budget this year, I also realize that the most
important thing Congress can do in the short term for the nascent
renewable energy industry is to get a series of production tax credits
into place and to extend some of the others. Hopefully, we, as a body,
will be able to get that done this year.
For the last few years you have funded a competitive pilot project
in Nevada that has worked tremendously well. As you know, my home State
has tremendous solar and geothermal potential and the seed money the
Department has provided has allowed Nevada universities, research
organizations, and industries to work together to prove out
technologies and techniques. I appreciate your hard work and that of
your staff in getting this program started and keeping it moving
forward.
Mr. Magwood, as you know I have been very supportive of your
programs during my years as Chairman and Ranking Member of this
subcommittee. I am supportive even though it sometimes puts me in an
awkward spot due to that very visible word ``nuclear'' in your office's
title.
I support strong budgets for you because, as I mentioned earlier,
long-term, stable, investments in scientific research and development
is what makes our Nation strong.
My biggest problem with nuclear power comes at the end of the fuel
cycle. However, I firmly believe that investments in the future of
nuclear power can produce reactors that are safer and will not produce
the deadly waste streams that plague the current generation of
reactors.
To the extent that there will be an on-going waste stream, it will
be investments in the science that solves all or most of the disposal
problem.
This is why I have supported your Advanced Fuel Cycle Initiative
over the years. I am a little concerned this year that your support for
this program seems to have eroded, but I suspect that Chairman Domenici
and I can help you in this area.
I feel confident that both Senator Craig and Senator Domenici have
many thoughts on the on-going transition of INEEL to the Nation's
nuclear energy laboratory, so I will not address that issue at this
time other than to say that I am far more interested in an aggressive
R&D budget that benefits the Nation as a whole than I am in a long,
slow, drawn-out transition.
Again, thanks to our witnesses for appearing today.
Senator Domenici. Senator, thank you very much, and now we
will excuse you and look forward to the next hearing.
Senator, would you like to make some comments, please?
Senator Murray. Mr. Chairman, I do not have an opening
statement. I'll just welcome the witnesses. I do have questions
and we'll wait until after they've had their testimony.
PREPARED STATEMENT OF SENATOR THAD COCHRAN
Senator Domenici. Senator Cochran has submitted a statement
for the record which will be included.
[The statement follows:]
Prepared Statement of Senator Thad Cochran
Mr. Chairman, I'd like to thank the Assistant Secretary and
Directors for testifying before this committee today. The work you do
is very important to my State and to me. I commend David Garman, the
Assistant Secretary of the Office of Energy Efficiency and Renewable
Energy, for the work his department does with biomass research.
Biomass energy is estimated to contribute over 7 percent of
Mississippi's total energy consumption--that amount is double the
national average. The majority of our lumber facilities burn wood waste
to generate steam for industrial processes. Biomass offers special
benefits for Mississippi's economy by keeping energy dollars in our
State and by providing jobs in rural areas where biomass is produced.
By using these wastes for energy, disposal costs are avoided, and
industries are better able to compete. I would also like to commend
Mississippi State University and Jackson State University for their
continuing research into this important scientific area.
Mr. Chairman, with your permission I have some questions I'd like
to submit for the record.
Senator Domenici. Let me say how good it has been to have
you working with us on this subcommittee. You have some very
significant interests, but I'm very pleased to find that when
we have problems on this committee, you're there to help us.
It's not just strictly what's going on in your State, and we
all need each other. Some very tough, tough problems when you
cut the budget as much as ours here.
I want to make one last observation before I proceed to the
witnesses. I don't know how to solve it, but I want to say
about 10 years ago or a little less, a couple of Senators
circulated around and got most of us to sign up on a
resolution. Perhaps you signed it like I did and you probably,
having been here awhile, chuckled as you signed it. We were
going to make the NIH, National Institute of Health, double in
10 years. Of course, we signed it as we walked out the door
wondering, who's kidding who?
Well, it happened, and every year after that it would be
among the last bills, and sure enough, somebody would stand up
and say, well, in order to meet our resolution we need $680
million more and the next year they needed a billion and here
we have the largest National Institute of Health growth in a
decade of any institution of that type in the world has ever
seen. And here we sit with everybody telling us the counterpart
is science, right, that without basic science, pretty soon the
NIH, with all of its work, is going to be without the talent
that's needed to back up the medical people.
And here we come, not critical of the President, after all
we're in this terrific deficit, but here we are. While that
occurred, we're cutting basic science, not increasing it. And
I'm just wondering what we have to do around here to get us on
a path where we recognize that these scientists and scientific
prowess is not going to keep America if we don't fund it.
ENERGY EFFICIENCY AND RENEWABLE ENERGY
And so with that, I'm very sorry to start with such a
negative comment, but let me open with you, Mr. Garman. You're
the Assistant Secretary of Energy Efficiency and Renewable
Energy and we want you to give your testimony and be ready for
questions. I do want to say to you, sir, from the first time I
inquired of you about this work, you have come a long way and I
am very complimentary of you.
First of all, you are not run by the renewable associations
out here in America. They have their interests but they don't
run your Department. You're not supposed to be running their
editorials, you're not supposed to be paying for their
journals. Remember, we had all that going when you took over.
Of course, all they did was get mad. Then when you looked at it
you found that Domenici was right, that if you want to do
research, you ought to do research, but you sure shouldn't be
paying for various organizations to get done what they want.
They aren't synonymous with research. And now I think it's
pretty clean in that regard.
I also want to tell you that we can do as much research as
you want, but ultimately Americans want to see some of this
work, and I am very, very pleased that I heard today that
Democratic leader said we have the votes to pass the Energy
bill. Now why would I be speaking of that at the same time?
Well, you know, if you want to build wind energy, you want to
build solar energy and biomass energy, everybody knows how to
do that. You can perfect it, but that's already passed, your
research issues.
And we're ready to go and build those but we need the
incentive that caused them to move ahead so rapidly, and what
everybody's finding out now, there is no incentive today. And
people say, well what do you mean? Well, the incentives expired
in January, so those who are very anxious and terribly enamored
as most of us are with energy that comes from wind, you ought
to know that unless you have a project that is already going,
there are no new ones, and there's nobody going to do a new
one. Why? Because they can't afford it.
But if we pass this bill they got this wonderful incentive
for this next decade, and you will see biomass and geothermal
and these other ones, you'll see them flourish across the land.
The biggest one will be wind. Whether the public's going to
want that much wind, I don't know. It's going to look funny
because there's going to be a lot of it, but I think we're
going to win, I think it's going to happen.
All right, would you proceed with your testimony? Make it
brief, please.
STATEMENT OF DAVID GARMAN
Mr. Garman. Yes, sir. And thank you for your comments. As
you noted in your statement, we are seeking an increase of
$17.3 million in the renewable energy funding, and a budget
increase in this environment does constitute an awesome
responsibility and we understand that. We're not only mindful
of how much we spend, but the way we spend it, as you noted,
and we're proud of the fact that OMB has recognized the
Department of Energy as leading the pack of Cabinet agencies in
terms of management improvement, and we're also proud that the
Office of Management and Budget has singled out the Office of
Energy Efficiency and Renewable Energy as an example in
implementing the President's management agenda.
So I will very briefly mention a few highlights of our
budget. Our hydrogen technology subprogram is a key component
of the President's Hydrogen Fuel Initiative. For 2005, we
request $95.3 million, a $13.3 million increase. With these
funds we propose to continue and accelerate our work with
regard to hydrogen production, safety, storage, codes and
standards, and other work that's critical to the long-term
success of this initiative.
Last year, roughly $40 million out of our total hydrogen
appropriation of $82 million was earmarked for some specific
projects that in many cases were inconsistent with our research
plan, so we will have to delay some very important work in
areas such as hydrogen storage and production that the National
Academy of Sciences and others have told us is very important
to the success of our program.
For our solar energy technology program, we're seeking
$80.3 million, roughly equivalent to the unencumbered amount of
our fiscal year 2004 appropriations. With this funding, we'll
continue our work to lower the cost of photovoltaic solar
energy systems, and for the first time in several years we're
seeking funding for concentrating solar power technologies.
Our wind energy technology program has been successful in
bringing down the cost of electricity generated from wind. Wind
energy systems have been the fastest growing source of
electricity worldwide for over a decade, but, of course, as the
chairman mentioned, that is dependent on the production tax
credit, which we do hope Congress will extend very quickly.
We are starting to devote more attention to the promise of
offshore wind and our focus on wind energy has shifted to
larger blades and turbines using advanced materials that will
allow economically viable wind development in lower wind speed
areas that are distributed across the country.
For our hydropower technology work, we request $6 million,
a $1.1 million increase over the fiscal year 2004
appropriation. Geothermal, as the chairman mentioned, offers a
promise as a baseload renewable energy resource, particularly
in the U.S. West. Our program focuses on exploration and
reservoir technologies and drilling research to enable industry
to locate and produce new geothermal fields at greatly reduced
cost.
Our biomass and biorefinery system R&D program is focused
on technologies to transform our domestic biomass resources
into high value chemicals, fuels, and power. In fiscal year
2005, we're seeking $72.6 million for activities conducted
under this appropriation. That's $13.9 million less than the
fiscal year 2004 amount. However, last year we did receive
nearly $41 million in earmarks, so we're actually seeking far
more funding directed toward our biomass and biorefinery R&D
goals than we received last year.
PREPARED STATEMENT
There are a variety of other programs and activities that
time doesn't allow me to mention, but for now I ask that my
full statement appear in the record and I'm happy to answer any
questions this committee has either today or in the future.
Thank you, Mr. Chairman.
[The statement follows:]
Prepared Statement of David Garman
Mr. Chairman, Members of the subcommittee, I appreciate the
opportunity to testify on the Fiscal Year 2005 President's Budget
request for the Office of Energy Efficiency and Renewable Energy
(EERE). My focus will be the renewable energy activities under the
purview of this subcommittee.
The research and development activities surrounding and the
deployment of advanced clean energy technologies are already making a
difference in the lives of Americans, and they will have an even
greater impact in the future. The overall EERE budget request for
fiscal year 2005 is a robust $1.25 billion, an increase of $15.3
million over the comparable fiscal year 2004 appropriation. For the
renewable energy programs funded through the Energy and Water
Development appropriation, the fiscal year 2005 request totals $374.8
million, a $17.3 million increase over the fiscal year 2004
appropriation and 30 percent of the total EERE Budget.\1\
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\1\ Activities focused on energy conservation are funded through
the Interior and Related Agencies appropriations bill.
---------------------------------------------------------------------------
We are not only mindful of how much we spend on these programs, but
also the manner in which we operate and the results we are achieving.
Our budget is prioritized in accordance with the National Energy Policy
Report and the Department of Energy Strategic Plan. EERE has also used
the research and development investment criteria called for in the
President's Management Agenda to focus our research and development
dollars on a balanced portfolio of well-planned activities that could
generate significant public benefits and that require Federal
involvement to be successful.
The Office of Management and Budget (OMB) recently announced that
DOE has made the most progress among cabinet-level agencies in the
implementation of the President's Management Agenda. OMB recognized the
Department as the cabinet-level agency ``leading the pack with regard
to management improvement.'' In support of that, EERE in 2002 underwent
a dramatic restructuring to streamline program management and
centralize administration functions with a focus on developing
consistent, uniform and efficient business practices. We are also
increasingly successful in linking our expenditures with performance
and results. We are striving to achieve more work in the laboratory
with every research and development dollar entrusted to our
stewardship. While we are very proud of the accomplishments we have
made, a great deal of progress remains to be made in all of these
areas.
RENEWABLE ENERGY PROGRAMS FISCAL YEAR 2005 BUDGET REQUEST
The renewable energy programs included in the Energy Supply account
and funded within the Energy and Water Development appropriations
include Hydrogen Technology, Solar Energy Technology, Wind and
Hydropower Technologies, and Geothermal Technology. Activities in the
Biomass Program and Intergovernmental programs are funded through both
the Energy and Water Development and Interior and Related Agencies
appropriations.
HYDROGEN TECHNOLOGY
The Fiscal Year 2005 Budget Request for Hydrogen Technology is
$95.3 million, a $13.3 million increase over the fiscal year 2004
appropriation. Much of the proposed increase is for hydrogen safety
research. This includes safety testing and analysis on bulk storage
systems, fuel dispensing equipment, and piping to support new codes and
standards specific to hydrogen. The Department has worked with the
Department of Transportation and other agencies on an interagency codes
and standards plan. Under this activity, we will also develop system
safety requirements for producing hydrogen and sensors to detect
hydrogen leaks.
Research undertaken in the Hydrogen Technology Program is also
targeted to reduce the cost of distributed hydrogen production from
electrolysis and natural gas reformation. An enhanced focus on
electrolysis, as recommended by the National Research Council, may lead
to cost competitive production of hydrogen from renewable energy at
$2.25 per gallon of gasoline equivalent by 2015.
One of the major technical obstacles we face is developing the
means to store sufficient amounts of hydrogen aboard the vehicle to
provide a driving range of greater than 300 miles. The fiscal year 2005
budget provides funding for innovative storage technologies to be
pursued under our ``Grand Challenge'' to leading universities and
national laboratories. ``Grand Challenge'' is our name for a
competitive solicitation that was directed towards the scientific
community to get the best minds at our universities and national labs
to propose research ideas to tackle this challenging problem.
The Hydrogen program is also stepping up its efforts on education
at all levels, so Americans know what the hydrogen economy will mean
for them, their businesses, and the environment, and understand how to
handle hydrogen safely in their communities.
Our hydrogen work is well integrated with the fuel cell and vehicle
work funded through the Interior Appropriations bill. Taken together,
these programs represent the majority of the Federal efforts comprising
the Hydrogen Fuel Initiative announced by President Bush during his
2003 State of the Union Address, and we have published very specific,
measurable technical goals against which to measure our progress. If we
achieve our technical objectives, the automotive and energy industries
will be in a position to consider commercialization by 2015, with mass
market availability of both vehicles and refueling infrastructure by
2020.
The President's initiative was received by Congress with
enthusiasm, and we appreciate this subcommittee's support. However,
while the fiscal year 2004 EERE appropriation for hydrogen technology
was approximately $82 million, roughly half of those funds were
earmarked for specific projects that are not wholly consistent with our
research plan or the recommendations of the National Research Council.
As a consequence, we must delay some very important work in areas such
as hydrogen storage and production, and thus our ability to meet our
established research targets in the specified timeframes may be in
jeopardy. The Department looks forward to working with the subcommittee
to help ensure that projects supported by the Committee are consistent
with our established goals in an effort to keep our progress on track.
SOLAR ENERGY TECHNOLOGY
The Solar Energy Technology program focuses research on advanced
solar devices that can provide the Nation with a widely available
domestic energy resource to help meet electricity needs and reduce the
stress on our critical electricity infrastructure. Efforts are directed
in the interrelated areas of Photovoltaics, Solar Heating and Lighting,
and Concentrating Solar Power. The fiscal year 2005 budget request for
Solar Technology is $80.3 million. This is roughly equivalent to the
unencumbered amount of the fiscal year 2004 appropriation of $83.4
million, which included $3.6 million earmarked to specific recipients.
Photovoltaic research and development seeks to reduce the
manufacturing cost of highly reliable photovoltaic modules from $2.10/
watt in 2003 to $1.85/watt by fiscal year 2005. The program is focused
on next-generation technologies such as thin-film photovoltaic cells
and leap-frog technologies such as polymers and nanostructures. Systems
engineering efforts seek to increase system durability and develop
technologies to improve interconnections with the electric grid. The
fiscal year 2005 request of $75.4 million for photovoltaic includes:
$30 million for critical fundamental research, including $2.1 million
to equip the new Science and Technology Facility at the National
Renewable Energy Laboratory; $29 million for advanced materials,
including thin films and next generation materials with potential for
dramatic cost reductions; and $16.4 million for technology development
efforts to improve reliability of the entire system, including testing,
verification, and deployment activities for grid-connected applications
and analysis of private sector commercialization options.
The fiscal year 2005 $2.9 million request for Solar Heating and
Lighting will support efforts on hot water and space heating for
residential and commercial buildings in collaboration with industry
partners. The program uses new formulations of lightweight polymer
materials to modernize solar water heaters, making them easier to
install, while lowering the cost of solar water heating in non-freezing
climates.
Last year, we did not request any funding for the Concentrating
Solar Power (CSP). In light of recent studies we sought from an
independent engineering firm, a draft of which was reviewed by the
National Research Council, the Department proposes $2 million for
Concentrating Solar Power in fiscal year 2005 to support a more
thorough investigation of the appropriate R&D course needed to realize
the potential for CSP. The fiscal year 2005 budget request will
maintain essential facilities and support work with several States on
the establishment of 1,000 MW of Concentrating Solar Power in the
Southwest, while developing a comprehensive program plan to help inform
the fiscal year 2006 budget development process and a longer term R&D
plan.
ZERO ENERGY BUILDINGS
Zero Energy Buildings activities develop strategies to integrate
renewable energy technologies into highly energy-efficient buildings
that produce as much or nearly as much energy as they consume on an
annual basis. The fiscal year 2005 budget request for the Building
Technologies Program funded through the Interior Appropriations bill
combines this energy research and development with ongoing activities
in the Buildings program and therefore, no fiscal year 2005 funds are
requested in this area.
WIND AND HYDROPOWER TECHNOLOGIES
Wind and Hydropower research and development supports the Nation's
fastest growing and most widely used renewable energy resources. These
technologies emit no air pollution or greenhouse gases, and they
produce significant amounts of bulk power to help meet America's
growing need for clean, domestic sources of electricity.
Since 2000, installed wind turbine capacity in the United States
has more than doubled, driven in large part by the tremendous
reductions in cost that have resulted from wind energy research. Our
research contributed to reducing the cost of electricity generation by
a factor of 20 since 1982, to 4 cents or less per kilowatt-hour in
areas with excellent wind resources.
The fiscal year 2005 budget request for Wind Energy is $41.6
million, $290,000 more than the fiscal year 2004 appropriation, which
included $1.4 million in funds that were earmarked to specific
recipients. The $12 million request for Low Wind Speed Technology
research and development will support multiple large wind system
technology pathways to achieve the goal of 3 cents per kilowatt-hour
for onshore systems. It also supports new work in off-shore systems to
help achieve a cost goal of 5 cents or less per kilowatt-hour. Fiscal
year 2005 activities will include field testing of the first full-scale
low wind speed technology prototype turbine and fabrication and testing
of advanced drivetrains, power converter and blades for future low wind
speed turbines. The $17 million request for supporting research and
testing will engage the capabilities of the National Labs, universities
and private sector for technical support including both facility and
field tests of newly developed components and systems to ensure design
and performance compliance.
Hydropower is the most widely used form of renewable energy in the
world today and accounts for about 7 percent of total electricity
generation in the United States and over 75 percent of domestic
renewable electricity generation. The fiscal year 2005 budget request
for Hydropower Technologies is $6.0 million, a $1.1 million or 22
percent increase over the fiscal year 2004 appropriation. The
Department's research approach involves a unique combination of
computer modeling, instrumentation, lab testing, and field-testing that
is improving the design and operation of the next generation of
hydropower technology. The request will support development of
technologies that will enable hydropower operators at existing plants
to generate more electricity with less environmental impact. This will
be done through environmentally enhanced, improved efficiency turbines,
as well as with new methods for optimizing unit, plant, and reservoir
systems to increase energy production per unit water. Supporting
research and testing will improve understanding of fish response to the
physical stresses experienced in passage through turbine systems. The
program will also explore ways to harness undeveloped hydropower
capacity without constructing new dams.
GEOTHERMAL TECHNOLOGY
The fiscal year 2005 budget request for Geothermal Technologies is
$25.8 million, a $300,000 increase from the fiscal year 2004
appropriation of $25.5 million, which included almost $2 million in
funds that were earmarked to specific recipients. Geothermal energy
generates electricity and provides heat for applications such as
aquaculture, crop drying, and district heating, and for use in heat
pumps to heat and cool buildings. The program focuses on developing
technology that optimizes the use of geothermal energy through improved
exploration, drilling, reservoir engineering, and energy conversion.
These technology improvements lead to cost-effective energy production
at new geothermal fields and expanded production at existing fields.
Fiscal year 2005 resource development activities will characterize
and assess the geothermal resource by understanding the formation and
evolution of geothermal systems, including a collaborative effort with
the U.S. Geological Survey on a national geothermal resource
assessment. Activities in the Enhanced Geothermal Systems program seek
to increase the productivity and lifetime of reservoirs, potentially
more than doubling the amount of viable geothermal resources in the
West. Fiscal year 2005 activities will include Enhanced Geothermal
System field tests in California and Nevada, and tests of the
Diagnostics-While-Drilling advanced drilling system in a high
temperature geothermal well. New geothermal State working groups in
Alaska and California will be added, bringing the number of groups to
nine.
BIOMASS AND BIOREFINERY SYSTEMS R&D
Biomass and Biorefinery Systems R&D focuses on advanced
technologies to transform the Nation's domestic biomass resources into
high value chemicals, fuels, and power. With the U.S. Department of
Agriculture, the DOE biomass program leads the multi-agency Biomass
Research and Development Initiative that coordinates and accelerates
all Federal bioenergy research and development in accordance with the
Biomass Research and Development Act of 2000.
The 2002 EERE reorganization integrated several bioenergy
activities into one office to allow a clear and consistent set of goals
and objectives and increased collaboration with industry. The program
worked closely with industry to produce a vision and R&D roadmap that
focuses on the most promising long-term opportunities that, with
leveraged funding from industry, can realize a goal of establishing the
first large-scale biorefinery based on agricultural residues by 2010. A
multiyear technical plan in support of this goal provides a
comprehensive work breakdown structure with milestones, costs and
schedule, so that every project is linked to program goals, objectives
and technical barriers.
In fiscal year 2005, the Department is requesting $72.6 million for
biomass program activities in the purview of the Energy and Water
appropriation, $13.9 million less than the fiscal year 2004
appropriation. However, it is important to note that the fiscal year
2004 appropriation included nearly $41 million, or nearly half of the
biomass budget, targeted to specific projects not identified in program
plans. Congressional earmarking has delayed progress toward the program
goals and diminished core research capabilities at the National
Laboratories.
Biomass activities funded through the Energy and Water
appropriation focus on advanced biorefinery technologies to produce low
cost sugars, syngas and pyrolysis oils. In fiscal year 2005, the
thermochemical program will test the continuous production, cleanup and
conditioning of biomass syngas and pyrolysis oils suitable for
conversion to fuels, chemicals or hydrogen, and examine the production
of hydrogen from biomass via synthesis gas. Work will continue with
industry on improved process integration capabilities for industrial
biorefineries, and the program will evaluate existing partnerships for
more productive and lower-cost cellulase enzyme systems. Additional
partnerships may further improve the procession operations leading to
cheaper biomass-based sugars. Projects to test and evaluate the
performance and costs of converting corn fiber to fuels and co-products
will also continue.
INTERGOVERNMENTAL ACTIVITIES
Intergovernmental Activities funded through the Energy and Water
appropriation include a variety of programs to promote renewable energy
technologies. The fiscal year 2005 request for these programs is $16
million, an increase of $1.3 million over the fiscal year 2004
appropriation.
The International Renewable Energy Program provides technical
assistance to support sustainable development and emerging market
economies. These efforts expand the market of U.S. industries and
reduce the cost of energy to trading partners while improving their
environment and creating new jobs. In fiscal year 2005, we request $6.5
million for international activities, a $612,000 increase from the
fiscal year 2004 appropriation, which included nearly $2.7 million in
funds that were earmarked to specific recipients. We propose to use
these funds for a wide variety of partnership activities under the U.S.
Clean Energy Initiative arising from the World Summit on Sustainable
Development.
In fiscal year 2005, we request $5.5 million for the Tribal
Resources Program, an increase of $594,000 over the fiscal year 2004
appropriation. The program provides assistance to Native American
Tribes and Tribal entities in assessing energy resources, comprehensive
energy plan development, energy technology training, and project
development. This primarily involves the development of energy
efficiency and renewable energy resources on Tribal lands. Projects
include resource assessments and development plans for energy efficient
and renewable energy technologies. Technical assistance helps Native
American Tribes, and Tribal Colleges develop culturally compatible
energy and economic development plans and strategies reflecting Tribal
priorities. In addition, the program invests in technical program and
market analysis and performance assessment in order to direct effective
strategic planning. Again, this is an area where congressionally
directed spending totaling $3.2 million, or more than half of our
funding, inhibits our ability to issue and entertain competitive
funding opportunities for tribes.
We are also requesting $4.0 million dollars for the Renewable
Energy Production Incentive, which will create an incentive similar to
the renewable production tax credits available to investor-owned
utilities for public power providers.
DEPARTMENTAL ENERGY MANAGEMENT PROGRAM
The Departmental Energy Management Program seeks to improve energy
and water efficiency, promote renewable energy use, and manage utility
costs in DOE facilities and operations. The Department owns or leases
about 11,000 buildings at more than 50 sites across the United States.
The fiscal year 2005 request for Department Energy Management Program
activities of $1.97 million, about the same as the fiscal year 2004
appropriation, will allow continued facility audits to identify energy
conservation opportunities; provide funding for best practices
identification and dissemination; and accomplish energy conservation
retrofits through direct funding and alternative financing.
NATIONAL CLIMATE CHANGE TECHNOLOGY INITIATIVE COMPETITIVE SOLICITATION
PROGRAM
This is the third year we seek funding for the Competitive
Solicitation Program as part of the President's National Climate Change
Technology Initiative. The competitive solicitation process will seek
innovative, novel, high-impact climate change technology options that
can complement and enrich the existing portfolio of climate change-
related research and applied technology. By stimulating and
strengthening Federal research in this area, the program hopes to
inspire private sector interest and international cooperation in a
sustained collaborative program of research investment aimed at
accelerating technology development and advancing the administration's
climate change goals. The Department is requesting $3 million in fiscal
year 2005 for this initiative.
FACILITIES AND INFRASTRUCTURE
This Facilities and Infrastructure budget addresses capital
requirements for capital projects, equipment and plant maintenance at
the National Renewable Energy Laboratory (NREL). NREL provides state-
of-the-art research facilities, user facilities, analysis, and
management of R&D contracts for the Solar, Wind, Geothermal, Biomass,
and Hydrogen programs within the Energy Supply budget, and does the
same for the programs in the Energy Conservation budget and
superconductivity research in the Office of Electricity Transmission
and Distribution. NREL is home to 1,100 researchers, engineers,
analysts, and administrative staff, plus visiting professionals,
graduate students, and interns on a 300-acre campus in Golden, CO,
occupying five large research buildings and over 200,000 square feet of
research and administrative space in a neighboring office park.
The fiscal year 2005 request of $11.5 million will provide $4.8
million for operation and maintenance funded activities and $6.7
million for continued construction of the Science and Technology
Facility.
PROGRAM DIRECTION
Program Direction provides the technical direction and oversight
resources needed to successfully implement EERE renewable energy
programs. The budget requests covers Federal staff, as well as
associated properties, equipment, supplies, and materials required to
support the management and oversight of programs. Areas funded by these
requests include information systems and technology equipment; travel;
public information activities; support service contractors; and
crosscutting performance evaluation, analysis and planning.
The fiscal year 2005 budget request for Program Direction in the
Energy Supply account is $20.7 million, which is $8.3 million more than
the fiscal year 2004 appropriation. The increase in fiscal year 2005
will fund activities to develop and strengthen EERE's program
management and project management practices at both Headquarters and
field offices. A new Project Management Center that includes the Golden
Field Office and other EERE field organizations is responsible for
project management of research and development partnerships, laboratory
contract administration including the management and operating contract
for the National Renewable Energy Laboratory, and providing
procurement, legal, business management, and information resource
management. This Project Management Center initiative allows our
Laboratories to devote more time to real research as opposed to
management oversight functions, and will help our program dollars
remain focused on research, development, and deployment.
The proposed increase will also provide full funding for the
renewable energy programs' share of landlord services at the Golden
Field Office and its fair share of Information Technology services and
local-area network operations.
The budget request also includes $3 million to provide analytical
and technical support services to the cross-cutting Climate Change
Technology Program, a multi-agency research planning and coordination
activity led by DOE.
CONCLUSION
Mr. Chairman, we believe the administration's fiscal year 2005
budget request for renewable energy technologies reflects a robust,
balanced and consistent approach toward meeting the Nation's energy
goals of increased energy security through utilization of diverse
domestic supplies, greater freedom of choice of technology, and reduced
financial costs and environmental impacts of energy utilization.
This completes my prepared statement, and I am happy to answer any
questions the subcommittee may have.
OFFSHORE WIND
Senator Domenici. I have a series of questions, but your
testimony kind of interrupted my thoughts and suggested that I
ask you a question. When you mentioned offshore activities,
we've run into a lot of arguing about people wanting more say-
so about where these great big fields of windmills are located.
In fact, we almost got an amendment on the floor. They were all
waiting for me to do it and I guess I let them down to give
local authority to decide yes or no.
I'm not asking you that question, but I'm saying, is there
a significant growth in the complaints about where you should
locate these fields and tell me a little bit about what's
happening?
Mr. Garman. Sure. Today the regulatory structure is very,
very difficult to navigate. There are a variety of State and
local agencies that one has to deal with if one wants to put
offshore wind in place. Offshore wind has such great promise
because it is a tremendous resource that's located very close
to the population and load centers, particularly on the
northeast coast of the United States, and we believe wind
energy could be very competitive there.
But today, unlike if you're trying to develop offshore
leasing for oil and gas and you deal with only one agency, the
Minerals Management Service as the lead agency to develop
offshore wind you have to deal with several agencies. The Army
Corps of Engineers is the lead agency, but it is very, very
difficult to deal with the regulatory structure.
There is a provision in the energy bill, however, that
would vest authority with the Department of the Interior to
begin to manage offshore leasing for wind similar to the way
they manage it for offshore outer continental shelf leasing.
Senator Domenici. Well, sir, you mentioned the northeast.
What's the issue off the shore of Massachusetts?
Mr. Garman. The Cape Wind Project is a project that is
probably economically viable today, but there is, of course,
concern, NIMBYism, some call it, about the impact of the wind
turbines on the horizon. I think wind turbines are
aesthetically beautiful, but that's me. Not everybody agrees.
So we are actually developing the larger technology that
could be offshore at such a distance that it couldn't be seen
from shore, and I think that could help ameliorate many of the
concerns that people have about the aesthetics.
Senator Domenici. There isn't any need that it be right
close, but does it get more expensive as you go out?
Mr. Garman. It does because the water is deeper. But
particularly in the Northeast, less so on the West Coast, you
have shallow water that extends 20 or more kilometers offshore.
The limit today is about 30 meters. If you go deeper than that,
we don't quite have the technology today to install wind
turbines.
Senator Domenici. Okay. Thank you very much. Dr. Orbach.
Office Of Science
STATEMENT OF RAYMOND L. ORBACH, DIRECTOR
Dr. Orbach. Mr. Chairman, members of the committee, I want
to thank you for your support over the years. I look forward to
working with you to ensure that our Nation stays at the leading
edge of science and technology for energy security.
The Office of Science 2005 budget request is $3.4 billion,
an increase of $72 million, or 2.2 percent over the fiscal year
2004 appropriation when congressionally-directed projects are
taken into account. This request allows the Office of Science
to carry forward with the Department's and the administration's
priorities in critical areas of science.
It enables us to begin our planning for the future of
science in America through important progress on the priorities
set out in the Facilities for the Future of Science report and
in the Office of Science strategic plan. It increases the
operation of our user facilities from 92 percent to 95 percent
of optimum, enhancing our leverage for our construction
investment. The full details of our budget request are provided
in the written statement I have submitted.
By title, let me talk about the highlights of our budget.
It will keep our Nation on the path to fusion power, with
important investments in ITER and other fusion programs. It
will enable investments in leadership-class machines for high-
end computation, essential for America's open scientific
technological research and economic development.
The President's request for the Office of Science will fund
vital research enabling the hydrogen economy. The President's
request provides funding for long-lead procurement of the LINAC
coherent light source, an X-ray free-electron laser, which will
truly provide a new window on nature.
PREPARED STATEMENT
Finally, this request provides the funding needed to
initiate project engineering design activities for the GTL
facility for the production and characterization of proteins
and molecular tags, which promises to accelerate genomics
research.
I would be delighted to answer any of your questions and I
hope that my testimony can be submitted for the record. Thank
you.
[The statement follows:]
Prepared Statement of Raymond L. Orbach
Mr. Chairman and Members of the subcommittee, thank you for the
opportunity to testify today about the Department of Energy's Office of
Science fiscal year 2005 budget request. The Department appreciates the
support of the Chairman and the Members of the committee over the past
years and I look forward to working with you to ensure that our Nation
stays at the leading edge of science and technology.
The Office of Science fiscal year 2005 budget request is $3.4
billion, a $68.5 million decrease from the fiscal year 2004
appropriation levels. When $140.8 million for fiscal year 2004
congressionally-directed projects is set aside, there is an increase of
$72.3 million in fiscal year 2005. This request makes investments in:
Advanced Scientific Computing Research (ASCR), Basic Energy Sciences
(BES), Biological and Environmental Research (BER), Fusion Energy
Sciences (FES), High Energy Physics (HEP), Nuclear Physics (NP),
Science Laboratories Infrastructure, Safeguards and Security, Workforce
Development for Teachers and Scientists and Science Program Direction.
It allows us to increase support for high priority scientific
research, increase operations at our key scientific user facilities,
keep major science construction projects on schedule, and support new
initiatives. This request, coming at a time of tight overall Federal
budgets, is also a demonstration of the administration's support for
basic research and the role that fundamental science plays in keeping
our Nation strong and secure.
OFFICE OF SCIENCE FISCAL YEAR 2005 PRESIDENT'S REQUEST
[B/A in thousands]
----------------------------------------------------------------------------------------------------------------
Fiscal Year
Fiscal Year Fiscal Year 2005
2003 Comparable 2004 Comparable President's
Approp. Approp. Request
----------------------------------------------------------------------------------------------------------------
Science:
Advanced Scientific Computing Research................... $163,185 $202,292 $204,340
Basic Energy Sciences.................................... 1,001,941 1,010,591 1,063,530
Biological & Environmental Research...................... 494,360 641,454 501,590
Congressionally-directed projects.................... (51,927) (140,762) ...............
Core Biological and Environmental Research........... (442,433) (500,692) (501,590)
Fusion Energy Sciences................................... 240,695 262,555 264,110
High Energy Physics...................................... 702,038 733,631 737,380
Nuclear Physics.......................................... 370,655 389,623 401,040
Science Laboratories Infrastructure...................... 45,109 54,280 29,090
Science Program Direction................................ 137,425 152,581 155,268
Workforce Development for Teachers & Scientists.......... 5,392 6,432 7,660
Small Business Innovation Research/Technology Transfer... 100,172 ............... ...............
Safeguards and Security.................................. 61,272 56,730 67,710
--------------------------------------------------
Subtotal, Science...................................... 3,322,244 3,510,169 3,431,718
Use of prior year balances................................... ............... -10,000 ...............
--------------------------------------------------
Total, Science......................................... 3,322,244 3,500,169 3,431,718
Total, excluding Congressionally-directed projects..... (3,270,317) (3,359,407) (3,431,718)
----------------------------------------------------------------------------------------------------------------
I am proud to tell you that the Department of Energy was ranked the
most improved cabinet-level agency in the most recent scorecard to
assess implementation of the President's Management Agenda (PMA). The
scorecard, which evaluates agency performance in the areas of human
capital, competitive sourcing, financial management, e-government, and
budget/performance integration, was issued by the Office of Management
and Budget (OMB) in January and recognized the Department as one of the
agencies ``leading the pack with regard to management improvement.''
The Department has made a strong commitment to a results-driven,
performance-based approach to management of itself and its government-
owned, contractor-operated laboratories. Laboratory contracts are being
renegotiated so that mutually agreed upon performance measures will
result in increased contractor authority and accountability, while
lessening the burden of DOE day-to-day oversight of activities. In
January of this year, the Department announced that it will compete the
management and operating contracts for seven of the DOE laboratories.
In September 2003, the Department issued its updated Strategic Plan
and incorporated this Plan and the Performance Plan into the fiscal
year 2005 budget request. The performance measures included in this
budget were developed with input from our scientific advisory
committees and OMB. A website (www.sc.doe.gov/measures) has been
developed to more fully explain the new measures within the context of
each program.
SCIENCE PLANS AND PRIORITIES
When I joined the Office of Science after a career as a university
scientist and administrator, I came with an appreciation for the four
key roles that the Office plays in the U.S. research effort. We provide
solutions to our Nation's energy challenges, contributing essential
scientific foundations to the energy, national, and economic security
missions of the DOE. We are the Nation's leading supporter of the
physical sciences, investing in research at over 280 universities, 15
national laboratories, and many international research institutions. We
deliver the premier tools of science to our Nation's science
enterprise, building and operating major research facilities for open
access by the science community. We help keep the United States at the
forefront of intellectual leadership, supporting the core capabilities,
theories, experiments, and simulations to advance science.
This fiscal year 2005 budget request will set us on the path toward
addressing the challenges that face our Nation in the 21st Century. SC
has recently released ``Facilities for the Future of Science: A Twenty-
Year Outlook'' which sets an ambitious agenda for scientific discovery
over the next two decades. The priorities established in this plan--
which is clearly not a budget document--reflect national priorities set
by the President and the Congress, our commitment to the DOE missions,
and the views of the U.S. scientific community. Pursuing these
priorities will be challenging, but they hold enormous promise for the
overall well-being of all of our citizens. We have recently released an
updated Office of Science Strategic Plan that is fully integrated with
the Facilities Plan, the Department's Strategic Plan, and the
President's Management Agenda--including the R&D Investment Criteria
and OMB's Program Assessment Rating Tool. The fiscal year 2005 budget
request begins to implement these plans.
I am increasingly mindful that the health and vitality of U.S.
science and technology depends upon the availability of the most
advanced research facilities. DOE leads the world in the conception,
design, construction, and operation of these large-scale devices. These
machines have enabled U.S. researchers to make some of the most
important scientific discoveries of the past 70 years, with spin-off
technological advances leading to entirely new industries. More than
19,000 researchers and their students from universities, other
government agencies (including the National Science Foundation and the
National Institutes of Health), private industry, and those from abroad
use DOE facilities each year. These users are growing in both number
and diversity.
Because of the extraordinarily wide range of scientific disciplines
required to support facility users at national laboratories, and the
diversity of mission-driven research supported by the SC, we have
developed an interdisciplinary capability that is extremely valuable to
some of the most important scientific initiatives of the 21st Century.
There is also a symbiotic relationship between research and research
tools. Research efforts advance the capabilities of the facilities and
tools that in turn enable new avenues of research.
Excluding funds used to construct or operate our facilities,
approximately half of our research funding goes to support research at
universities and institutes. Academic scientists and their students are
funded through peer-reviewed grants, and SC's funding of university
research has made it an important source of support for graduate
students and postdoctoral researchers in the physical sciences during
their early careers.
Mindful of the role that the Office of Science plays in supporting
the physical sciences and other key fields, I would now like to briefly
outline some specific investments that we are proposing in the Fiscal
Year 2005 Request.
SCIENCE PROGRAMS
ADVANCED SCIENTIFIC COMPUTING RESEARCH
Fiscal Year 2004 Comparable Appropriation--$202.3M; Fiscal Year 2005
Request--$204.3M
The Advanced Scientific Computing Research (ASCR) program
significantly advances scientific simulation and computation, applying
new approaches, algorithms, and software and hardware combinations to
address the critical science challenges of the future, and provides
access to world-class, scientific computation and networking facilities
to the Nation's scientific community to support advancements in
practically every field of science and industry. The ASCR budget also
supports the Scientific Discovery through Advanced Computing (SciDAC)
program--a set of coordinated investments across all Office of Science
mission areas with the goal of achieving breakthrough scientific
advances via computer simulation that were previously impossible using
theoretical or laboratory studies alone.
The fiscal year 2005 budget request includes $204.3 million for
ASCR to advance U.S. leadership in high performance supercomputing and
networks for science and to continue to advance the transformation of
scientific simulation and computation into the third pillar of
scientific discovery. The request includes $38.2 million for the Next
Generation Computer Architecture (NGA) research activity, which is part
of a coordinated interagency effort that supports research, development
and evaluation of new architectures for scientific computers that could
help enable continued U.S. leadership in science. Enhancements are
supported for ASCR facilities--the Energy Sciences Network (ESnet) and
the National Energy Research Scientific Computing Center (NERSC). The
request also includes $8.5 million for the new Atomic to Macroscopic
Mathematics research effort to provide the research support in applied
mathematics needed to break through the current barriers in our
understanding of complex physical processes.
BASIC ENERGY SCIENCES
Fiscal Year 2004 Comparable Appropriation--$1,010.6M; Fiscal Year 2005
Request--$1,063.5M
The Basic Energy Sciences (BES) program is a principal sponsor of
fundamental research for the Nation in the areas of materials sciences
and engineering, chemistry, geosciences, and bioscience as it relates
to energy. This research underpins the DOE missions in energy,
environment, and national security; advances energy-related basic
science on a broad front; and provides unique user facilities for the
scientific community and industry.
For fiscal year 2005, the Department requests $1.1 billion for BES
including $208.6 million to continue to advance nanoscale science
through atomic- and molecular-level studies in materials sciences and
engineering, chemistry, geosciences, and energy biosciences. This
supports Project Engineering Design (PED) and construction of four
Nanoscale Science Research Centers (NSRC's) and a Major Item of
Equipment for the fifth and final NSRC. NSRC's are user facilities for
the synthesis, processing, fabrication, and analysis of materials at
the nanoscale. The request also includes $80.5 million for construction
and $33.1 million for other project costs for the Spallation Neutron
Source, and $54.1 million for research, development, PED, and long lead
procurement of the Linac Coherent Light Source, a revolutionary x-ray
laser light source. With these tools, we will be able to understand how
the compositions of materials affect their properties, watch proteins
fold, see chemical reactions, and design matter for desired outcomes.
The fiscal year 2005 budget request also includes $29.2 million for
activities that support the President's Hydrogen Fuel Initiative. This
research program is based on the BES workshop report ``Basic Research
Needs for the Hydrogen Economy,'' which highlights the enormous gap
between our present capabilities and those required for a competitive
hydrogen economy.
BIOLOGICAL AND ENVIRONMENTAL RESEARCH
Fiscal Year 2004 Comparable Appropriation--$641.5M; Fiscal Year 2005
Request--$501.6M
The Biological and Environmental Research (BER) program advances
energy-related biological and environmental research in genomics and
our understanding of complete biological systems, such as microbes that
produce hydrogen; in climate change, including the development of
models to predict climate over decades to centuries; developing
science-based methods for cleaning up environmental contaminants; in
radiation biology, providing regulators with a stronger scientific
basis for developing future radiation protection standards; and in the
medical sciences, by developing new diagnostic and therapeutic tools,
technology for disease diagnosis and treatment, non-invasive medical
imaging, and biomedical engineering such as an artificial retina that
will restore sight to the blind. For fiscal year 2005, the Department
requests $501.6 million for BER. The fiscal year 2004 appropriation
includes $140.8 million of one-time Congressionally-directed projects,
for which no additional funds are being requested in fiscal year 2005.
Research on microbes through the Genomics: GTL program, addressing
DOE energy and environmental needs, continues to expand from $63.5
million in fiscal year 2004 to $67.5 million in fiscal year 2005. The
request also provides $5 million for initiation of Project Engineering
Design (PED) activities for the GTL Facility for the Production and
Characterization of Proteins and Molecular Tags, a facility that will
help move the Genomics: GTL systems biology research program to a new
level by greatly increasing the rate and cost-effectiveness with which
experiments can be done. DOE, through the Genomics: GTL program, will
attempt to use genetic techniques to harness microbes to consume
pollution, create hydrogen, and absorb carbon dioxide.
FUSION ENERGY SCIENCES
Fiscal Year 2004 Comparable Appropriation--$262.6M; Fiscal Year 2005
Request--$264.1M
The Fusion Energy Sciences (FES) program advances the theoretical
and experimental understanding of plasma and fusion science, including
a close collaboration with international partners in identifying and
exploring plasma and fusion physics issues through specialized
facilities. This includes: (1) exploring basic issues in plasma
science; (2) developing the scientific basis and computational tools to
predict the behavior of magnetically confined plasmas; (3) using the
advances in tokomak research to enable the initiation of the burning
plasma physics phase of the Fusion Energy Sciences program; (4)
exploring innovative confinement options that offer the potential of
more attractive fusion energy sources in the long term; (5) focusing on
the scientific issues of nonneutral plasma physics and High Energy
Density Physics; (6) developing the cutting edge technologies that
enable fusion facilities to achieve their scientific goals; and (7)
advancing the science base for innovative materials to establish the
economic feasibility and environmental quality of fusion energy.
When the President announced that the United States would join in
the International Thermonuclear Experimental Reactor (ITER) project he
noted that ``the results of ITER will advance the effort to produce
clean, safe, renewable, and commercially available fusion energy by the
middle of this century.'' To this end, the Department continues its
commitment to the future of Fusion Energy Science research with a
request of $264.1 million, slightly above the fiscal year 2004 enacted
level. Within that amount, $38 million is requested for preparations
for ITER in fiscal year 2005, $30 million more than in fiscal year
2004. Of this $38 million, $7 million is for scientists and engineers
who will support the International Team and for the qualification of
vendors that will supply superconducting cable for ITER magnets. The
remaining $31 million will be used to support refocused experiments in
our tokamak facilities and for component R&D in our laboratories and
universities that is closely related to our ongoing program but which
is focused on ITER's specific needs. The researchers and facilities
that we support will not be doing less work because of ITER, but some
of their time and effort will be directed to different, ITER-related,
work than they were doing before.
Fabrication continues on the National Compact Stellarator
Experiment (NCSX), an innovative confinement system that is the product
of advances in physics understanding and computer modeling. In
addition, work will be initiated on the Fusion Simulation Project that,
upon completion, will provide an integrated simulation and modeling
capability for magnetic fusion energy confinement systems over a 15-
year development period. The Inertial Fusion Energy research program
will be redirected toward high energy density physics research based on
recommendations that will come from the recently established
Interagency Task Force on High Energy Density Physics.
HIGH ENERGY PHYSICS
Fiscal Year 2004 Comparable Appropriation--$733.6M; Fiscal Year 2005
Request--$737.4M
The High Energy Physics (HEP) program advances our understanding of
the basic constituents of matter, including the mysterious dark energy
and dark matter that make up most of the universe; the striking
imbalance of matter and antimatter in the universe, and the possible
existence of other dimensions. Collectively, these investigations will
reveal the key secrets of the birth, evolution, and final destiny of
the universe. HEP expands the energy frontier with particle
accelerators to study fundamental interactions at the highest possible
energies, which may reveal previously unknown particles, forces or
undiscovered dimensions of space and time; explain how everything came
to have mass; and illuminate the pathway to the underlying simplicity
of the universe.
For fiscal year 2005, the Department requests $737.4 million for
the HEP program, an increase from fiscal year 2004. The highest
priority in HEP is the operation, upgrade and infrastructure for the
two major HEP user facilities at the Fermi National Accelerator
Laboratory (Fermilab) and the Stanford Linear Accelerator Center
(SLAC), to maximize the scientific data generated.
In 2005, the Neutrinos at the Main Injector (NuMI) facility will be
complete and the beam line will be commissioned. The fiscal year 2005
budget request also supports research and design activities for a new
Major Item of Equipment, the BTeV (``B Physics at the TeVatron'')
experiment at Fermilab that will extend current investigations, using
modern detector technology to harvest a data sample more than 100 times
larger than current experiments. Research and development work
continues in fiscal year 2005 on the proposed Supernova Acceleration
Probe (SNAP) experiment for the DOE/NASA Joint Dark Energy Mission
(JDEM).
NUCLEAR PHYSICS
Fiscal Year 2004 Comparable Appropriation--$389.6M; Fiscal Year 2005
Request--$401M
The Nuclear Physics (NP) program supports innovative, peer reviewed
scientific research to advance knowledge and provide insights into the
nature of energy and matter, and in particular, to investigate the
fundamental forces which hold the nucleus together, and determine the
detailed structure and behavior of the atomic nuclei. Nuclear science
plays a vital role in studies of astrophysical phenomena and conditions
of the early universe. At stake is a fundamental grasp of how the
universe has evolved, an understanding of the origin of the elements,
and the mechanisms of supernovae core collapse. The program builds and
supports world-leading scientific facilities and state-of-the-art
instruments necessary to carry out its basic research agenda.
Scientific discoveries at the frontiers of Nuclear Physics further the
Nation's energy-related research capacity, which in turn provides for
the Nation's security, economic growth and opportunities, and improved
quality of life.
The fiscal year 2005 budget request of $401 million gives highest
priority to exploiting the unique discovery potentials of the
facilities at the Relativistic Heavy Ion Collider (RHIC) and Continuous
Electron Beam Accelerator Facility (CEBAF) by increasing operating time
by 26 percent compared with fiscal year 2004. R&D funding is provided
for the proposed Rare Isotope Accelerator (RIA) and 12 GeV upgrade of
CEBAF, which is located at Thomas Jefferson National Accelerator
Facility.
Operations of the MIT/Bates facility will be terminated as planned,
following 3 months of operations in fiscal year 2005 to complete its
research program. This facility closure follows the transitioning of
operations of the Lawrence Berkeley National Laboratory 88-Inch
Cyclotron in fiscal year 2004 from a user facility to a dedicated
facility for the testing of electronic circuit components for use in
space (using funds from other agencies) and a small in-house research
program. These resources have been redirected to better utilize and
increase science productivity of the remaining user facilities and
provide for new opportunities in the low-energy subprogram.
SCIENCE LABORATORIES INFRASTRUCTURE
Fiscal Year 2004 Comparable Appropriation--$54.3M; Fiscal Year 2005
Request--$29.1M
The Science Laboratories Infrastructure (SLI) program supports SC
mission activities at SC laboratories by addressing needs related to
general purpose infrastructure, excess facilities disposition, Oak
Ridge landlord, health and safety improvements and payment in lieu of
taxes (PILT).
The fiscal year 2005 budget request supports three ongoing line
item construction projects at Lawrence Berkeley National Laboratory,
Brookhaven National Laboratory and the Stanford Linear Accelerator
Center and nine projects to clean-up/remove 84,000 square feet of
excess space to reduce operating costs, and environment, safety and
health liabilities, and to free up land for future use. The request
also supports activities to maintain continuity of operations at the
Oak Ridge Reservation (ORR), including Federal facilities in the town
of Oak Ridge and PILT for local communities surrounding Oak Ridge. PILT
is also provided to communities surrounding Brookhaven and Argonne
East.
We have continued to work cooperatively with the Occupational
Safety and Health Administration (OSHA) and the Nuclear Regulatory
Commission (NRC) teams as they have conducted audits of our
laboratories. NRC has completed its audits; OSHA is expected to
complete its audits in mid-March 2004. The laboratories are preparing
cost estimates to meet the requirements as identified by those
agencies, and we plan to provide this information to Congress by May
31, 2004. Health and safety improvements to address OSHA- and NRC-
identified deficiencies and recommendations at Office of Science
laboratories are expected to be completed in fiscal year 2004.
SAFEGUARDS AND SECURITY
Fiscal Year 2004 Comparable Appropriation--$56.7M; Fiscal Year 2005
Request--$67.7M
Safeguards and Security activities reflects the Office of Science's
commitment to maintain adequate protection of cutting edge scientific
resources and assets. The fiscal year 2005 budget request includes $9.8
million for Pacific Northwest Site Office safeguards and security
activities, which were transferred from the Office of Environmental
Management. In fiscal year 2005, Safeguards and Security will enable
the Office of Science laboratories to meet the requirements of Security
Condition 3 level mandates for the protection of assets. The request
also provides the laboratories with the ability to maintain
requirements of increased Security Condition 2 level for 60 days. The
funding includes the increase needed to meet expectations of the
revised Design Basis Threat approved by the Secretary in May 2003. In
addition, critical cyber security investments will be made to respond
to the ever changing cyber threat.
WORKFORCE DEVELOPMENT FOR TEACHERS AND SCIENTISTS
Fiscal Year 2004 Comparable Appropriation--$6.4M; Fiscal Year 2005
Request--$7.7M
The mission of the Workforce Development for Teachers and
Scientists program is to continue the Office of Science's long-standing
role of training young scientists, engineers, and technicians in the
scientifically and technically advanced environments of our National
Laboratories.
The fiscal year 2005 budget request of $7.7 million provides $1.5
million for a Laboratory Science Teacher Professional Development
activity. About 90 participating teachers will gain experience and
enhance their skills at five or more DOE laboratories in response to
the national need for science teachers who have strong content
knowledge in the classes they teach. A new $500,000 Faculty Sabbatical
Fellowship activity will provide sabbatical opportunities for 12
faculty from minority serving institutions (MSI's). This proposed
activity is an extension of the successful Faculty and Student Teams
(FaST) program where teams of faculty members and two or three
undergraduate students, from colleges and universities with limited
prior research capabilities, work with mentor scientists at a National
Laboratory to complete a research project that is formally documented
in a paper or presentation.
SCIENCE PROGRAM DIRECTION
Fiscal Year 2004 Comparable Appropriation--$152.6M; Fiscal Year 2005
Request--$155.3M
The mission of Science Program Direction is to provide a Federal
workforce, skilled and highly motivated, to manage and support basic
energy and science-related research disciplines, diversely supported
through research programs, projects, and facilities under the Office of
Science's leadership.
Science Program Direction consists of two subprograms: Program
Direction and Field Operations. The Program Direction subprogram is the
single funding source for the SC Federal staff in Headquarters
responsible for directing, administering, and supporting the broad
spectrum of scientific disciplines. This subprogram also includes
program planning and analysis activities which provide the capabilities
needed to evaluate and communicate the scientific excellence,
relevance, and performance of SC basic research programs.
The Field Operations subprogram is the centralized funding source
for the SC Federal workforce in the field who are responsible for
providing business, administrative, and specialized technical support
to SC and other DOE programs. Our service centers in Chicago and Oak
Ridge provide primary support to SC laboratories and facilities,
including Ames, Argonne National Laboratory, Brookhaven National
Laboratory, Lawrence Berkeley National Laboratories, Oak Ridge National
Laboratory, Pacific Northwest National Laboratory, Fermilab, Princeton
Plasma Physics Laboratory, Thomas Jefferson National Accelerator
Facility, and Stanford Linear Accelerator Center.
Secretary Abraham approved the Office of Science Restructuring
(OneSC) on January 5, 2004. OneSC was initiated in July 2002 to embrace
the changes envisioned by the President's Management Agenda (PMA) to
accomplish government programs more economically and effectively by
creating a new, more efficient, and productive SC organization. It will
also provide a management environment for SC employees in which their
success and high performance can continue in the face of changing
resources, requirements, and societal needs.
The fiscal year 2005 budget request of $155.3 million represents a
1.8 percent increase over the fiscal year 2004 enacted level. This
increase is reflected in salaries and benefits to support a total SC
workforce of 1,014 full-time equivalents (FTE's). Compared to fiscal
year 2004, the fiscal year 2005 request is flat or lower in our other
major budget categories, such as travel, training, support services,
and other related expenses. We will continue to leverage resources and
rely on building good business practices by streamlining operations,
improving financial controls, and reengineering business processes in
support of the PMA and the OneSC structure.
CONCLUSION
The Office of Science occupies a unique and critical role within
the U.S. scientific enterprise. We fund research projects in key areas
of science that our Nation depends upon. We construct and operate major
scientific user facilities that scientists from virtually every
discipline are using on a daily basis, and we manage civilian national
laboratories that are home to some of the best scientific minds in the
world.
Our researchers are working on many of the most daunting scientific
challenges of the 21st Century. These include pushing the frontiers of
the physical sciences through nanotechnology and exploring the key
questions at the intersection of physics and astronomy. We are also
pursuing opportunities at the intersection of the physical sciences,
the life sciences, and scientific computation to understand how the
instructions embedded in genomes control the development of organisms,
with the goal of harnessing the capabilities of microbes and microbial
communities to help us to produce energy, clean up waste, and sequester
carbon from the atmosphere. The Office of Science is also pushing the
state-of-the-art in scientific computation, accelerator R&D, plasma
confinement options and a wide array of other technologies that advance
research capabilities and strengthen our ability to respond to the
rapidly changing challenges ahead.
I want to thank you, Mr. Chairman, for providing this opportunity
to discuss the SC's research programs and our contributions to the
Nation's scientific enterprise. This concludes my testimony. I would be
pleased to answer any questions you might have.
Senator Domenici. Is this your product?
Dr. Orbach. Yes, it is, sir.
Senator Domenici. Facilities for Future of Science 20-Year
Outlook. I think it's terrific.
[Clerk's Note.--The document entitled, ``Facilities for the
Future of Science: A Twenty-Year Outlook'' can be found at
http://www.sc.doe.gov/sub/Facilities_For_Future/20-Year-
Outlook_screen.pdf.]
Dr. Orbach. Thank you.
Senator Domenici. I'm very sorry that it doesn't get more
use and more exposure and maybe you might just tell me, how
does it get around?
Dr. Orbach. Well, we've been distributing it at each of the
meetings that I attend around the country. We have made major
press announcements and we have submitted it to scientific
organizations not only in the United States but also abroad.
Also our current budget request enables us to begin the top
six of our priorities at different stages depending on R&D, so
we're beginning to put it into play.
Senator Domenici. Great.
Dr. Orbach. Thank you for your comment.
Senator Domenici. Mr. Magwood, would you proceed with kind
of dispatch on your statement, because we've got a lot of
questions.
Office of Nuclear Energy, Science and Technology
STATEMENT OF WILLIAM D. MAGWOOD, IV, DIRECTOR
Mr. Magwood. Be happy to, Mr. Chairman. I do have a written
statement for the record. Let me very briefly summarize my
remarks because I know you're very familiar with our program
activities.
NUCLEAR ENGINEERING PROGRAMS
I want to take a look back. When you think about where we
started from back in 1998, when you and I spoke about the
pretty dire situation facing the nuclear energy program run by
the Federal Government, at that time our research budget
plummeted to zero; students entering nuclear engineering
programs had gone down to 500 from 1,500 just a few years
earlier; and many countries that had seen the United States as
a principal partner for nuclear energy research and development
had turned away from us and had begun to think of the United
States as being basically a past partner.
Over the last several years, this has turned around
significantly. I think there's been a lot of success to look
back on. Looking at it today, the number of nuclear engineering
students now are 1,400 in universities across the country. This
is a huge accomplishment considering where we were a few years
ago.
Senator Domenici. How many?
Mr. Magwood. One thousand, four hundred. Almost as----
Senator Domenici. Studying what?
Mr. Magwood. Nuclear engineering. So that's almost
completely reversed from the climate of the 1990's.
Senator Domenici. But now we went like that and we're going
to stop growing.
Mr. Magwood. No, we want to keep growing. We think we're in
good shape. As a matter of fact, we are actually starting new
programs in nuclear engineering across the country at schools
like the University of South Carolina, South Carolina State and
even--I'm sorry that Mr. Reid's not here--University of Nevada
Las Vegas is looking at starting a new nuclear engineering
program.
On our side, the research that we're pursuing in Generation
IV nuclear power systems has really taken off. We're working
with our international partners very closely and we're very
optimistic about the direction that that work has taken.
PREPARED STATEMENT
You may know, Mr. Chairman, that I was recently elected
chairman of the Generation IV International Forum and also the
OECD steering committee on nuclear energy, and in those
positions I've been able to really leverage our activities with
those of our international partners; and we think that the
ability to work with our international partners to pursue
advanced technologies, including the possible pursuit of a
project at our Idaho site to look at an advanced hydrogen
electricity production reactor, is something that's well within
our grasp.
So I'll just leave it at that. We've appreciated your
leadership over the years and look forward to any questions you
have.
[The statement follows:]
Prepared Statement of William D. Magwood, IV
Mr. Chairman, Senator Reid, and Members of the subcommittee, it is
a pleasure to be here to discuss the fiscal year 2005 budget submission
for DOE's Office of Nuclear Energy, Science and Technology.
The program has made a great deal of progress over the past several
years. From the time, not so many years ago, when it appeared that the
United States might abandon advanced nuclear research and development,
we have been successful in reasserting U.S. leadership in the world.
Representing the United States, I have been elected by my international
colleagues to serve as the chair of two important international
bodies--the OECD Steering Committee on Nuclear Energy and the
Generation IV International Forum. When it appeared that nuclear
power's era had ended in the United States, nuclear utilities have
turned their programs around, making more energy last year than at any
time in history and launching into very serious discussions to explore
the construction of new plants for the first time in decades.
Recent developments have been encouraging. The Department has
launched the process of establishing a central laboratory for nuclear
research and development--the Idaho National Laboratory. We are also
exploring the possible construction of a pilot Generation IV nuclear
plant at our new lab that will demonstrate highly efficient electricity
production and pave the way to realize the President's vision of a
future hydrogen economy.
The Department's fiscal year 2005 request for the nuclear energy
program proposes a $410 million investment in nuclear research,
development and infrastructure for the Nation's future that is designed
to continue this progress. This budget request moves forward the
Department's commitment to support the President's priorities to
enhance the Nation's energy independence and security while enabling
significant improvements in environmental quality. Our request supports
development of new nuclear generation technologies and advanced energy
products that provide significant improvements in sustainability,
economics, safety and reliability, and proliferation and terrorism
resistance.
We are committed to efficiently managing the funds we are given. We
have abandoned outdated paradigms to integrate the Idaho Operations
Office with our headquarters organization, enabling us to manage our
responsibilities in the field to achieve greater quality and efficiency
than would otherwise be possible. We are enhancing our expertise in
critical areas such as project management through training and
certification of existing staff and the acquisition of experienced,
proven managers. We continue to implement the President's Management
Agenda (PMA) by further integrating budget and performance, improving
Program Assessment Rating Tool (PART) scores for our research and
development programs, and linking major program goals in the
performance plans for our Senior Executives and technical staff. These
improvements are challenging and time-consuming, but we feel they must
be done to assure our program's ability to make the best use of the
taxpayer dollars.
While we have made great progress in all these areas, much remains
to be done. Our fiscal year 2005 request moves us in the right
direction and I will now provide you a full report of our activities
and explain the President's request for nuclear energy in detail.
GENERATION IV NUCLEAR ENERGY SYSTEMS
Our Generation IV effort continues to make significant progress.
Since the Generation IV International Forum and the Nuclear Energy
Research Advisory Committee (NERAC) issued their joint report, ``A
Technology Roadmap for Generation IV Nuclear Energy Systems'', the
members of the Forum have expanded to include Switzerland and the
European Union. The now 11 members (Argentina, Brazil, Canada, the
European Union, France, Japan, the Republic of Korea, the Republic of
South Africa, Switzerland, the United Kingdom and the United States)
have organized into interest groups associated with each of the six
selected Generation IV systems and are negotiating international legal
agreements to enable advanced nuclear research to be conducted on a
multilateral basis.
We hope to complete these negotiations later this year and move
forward with these countries to develop advanced reactor technologies
for commercial deployment in the 2015 to 2030 timeframe. Generation IV
concepts offer significant improvements in sustainability,
proliferation resistance, physical protection, safety and economics.
These advanced systems will not only be safe, economic and secure, but
will also include energy conversion systems that produce valuable
commodities such as hydrogen, desalinated water and process heat. These
features make Generation IV reactors ideal for meeting the President's
energy and environmental objectives.
As indicated in our recent report to Congress on our implementation
strategy for the Generation IV program, while the Department is
involved in research on several reactor concepts, our efforts and this
budget proposal place priority on development of the Next Generation
Nuclear Plant (NGNP). The NGNP is based on the union of the Very-High-
Temperature Reactor concept in the Generation IV Roadmap with advanced
electricity and hydrogen production technologies. We are exploring the
potential of an international, public-private project to build and
operate a pilot NGNP at the Department's Idaho site. While the
Department has not made a decision to proceed with this effort, such a
project could validate the potential of this technology to contribute
to meeting to goals of the President's Hydrogen Fuel Initiative. If
successful, this technology could produce hydrogen at a cost that is
competitive with gasoline and electricity and with advanced natural
gas-fired systems.
The Idaho National Laboratory and several other labs will also
explore a range of other Generation IV concepts principally the
Supercritical Water-Cooled Reactor, the Gas-Cooled Fast Reactor and the
Lead-Cooled Fast Reactor. Our efforts will focus on establishing
technical and economic viability, and developing core and fuel designs,
and advanced materials for these concepts. We are also working with our
colleagues in the Office of Science to assemble a joint Future Energy
Advanced Materials Initiative aimed at the development of new materials
for advanced fission and fusion energy systems. The fiscal year 2005
request enables progress on this broad front. With your support, and
the leveraging of our resources with those of our international
partners, we expect to make continued progress toward developing world-
changing technologies.
NUCLEAR HYDROGEN INITIATIVE
Hydrogen offers significant promise as a future energy technology,
particularly for the transportation sector. The use of hydrogen in
transportation will reduce U.S. dependence on foreign sources of
petroleum, enhancing national security. Significant progress in
hydrogen combustion engines and fuel cells is making transportation
using hydrogen a reality. Today, through electrolysis, we can convert
water to hydrogen using electricity. We believe that for the future,
Very-High-Temperature Reactors coupled with thermo-chemical or high-
temperature electrolytic water splitting processes offer a more
efficient technology for production of large quantities of hydrogen
without release of greenhouse gases. The goal of the Nuclear Hydrogen
Initiative is to develop economic, commercial-scale production of
hydrogen using nuclear energy.
With funding of $9 million in fiscal year 2005, the Nuclear
Hydrogen Initiative will progress toward the development and
demonstration of closed, sulfur-based cycles, such as the sulfur-iodine
process. These processes have been demonstrated on a bench scale at
somewhat lower temperatures and pressures than would be required for
economic hydrogen production, but they show considerable promise,
especially when they are considered for mating to Very-High-Temperature
Reactor systems. We will also explore high-temperature electrolysis,
which uses electricity to split high-temperature steam into hydrogen
and oxygen, similar to a fuel cell operating in reverse (specifically a
solid-oxide fuel cell, SOFC). High-temperature electrolysis requires
much less fundamental R&D, but the ability of the process to scale
economically must be demonstrated.
Finally, a major effort will be pursued in fiscal year 2005 to
explore materials for hydrogen production processes which must endure
high temperatures and very corrosive environments while maintaining
structural integrity at low costs. Included in this effort will be our
work to explore new membranes that can increase the efficiencies of the
hydrogen production processes.
ADVANCED FUEL CYCLE INITIATIVE
Of the issues affecting future expansion of nuclear energy in the
United States and worldwide, none is more important or more difficult
than that of dealing effectively with spent nuclear fuel. After a long
and difficult process, the United States is moving forward with a
geologic repository, and the Department is on schedule to submit a
license application to the Nuclear Regulatory Commission by the end of
2004.
Research on improving ways to treat and utilize materials from
spent nuclear fuel will allow the Department to optimize the first
repository, and delay--and perhaps even eliminate--the need for future
repositories. The Advanced Fuel Cycle Initiative, with an investment of
$46 million for fiscal year 2005, will continue the progress made in
the development of proliferation-resistant treatment and transmutation
technologies that can reduce both the volume and toxicity of spent
nuclear fuel. These technologies would support both national security
and energy independence by reducing inventories of commercially-
generated plutonium while recovering residual energy value from spent
nuclear fuel. If successful, these same technologies offer benefits of
enhancing national security by reducing inventories of commercially-
generated plutonium and enhancing energy independence by recovering the
energy value contained in spent nuclear fuel.
The program has already enjoyed considerable success. We have
proven the ability of our UREX technology to separate uranium from
spent fuel at a very high level of purity and also shown that a
derivative, UREX+, can separate a combined mixture of plutonium and
neptunium that can serve as the basis for a proliferation-resistant
fuel for light water reactors.
The Department's research efforts are leading to the demonstration
of proliferation-resistant fuel treatment technologies to reduce the
volume and radioactivity of high level waste, and the development of
advanced fuels that would enable consumption of plutonium using
existing light water reactors or advanced reactors. We have tested
proliferation-resistant nitride and metal transmutation fuels in the
Advanced Test Reactor and are currently testing mixed-oxide fuels such
as would be derived from the UREX+ process.
For the Advanced Fuel Cycle Initiative to be successful, advanced
fuel treatment and transmutation research and development must be
integrated with the development of Generation IV nuclear energy
systems, particularly with those reactor technologies that can produce
very high energy neutrons that would be needed to transmute a wide
variety of toxic radioactive species. We have organized our national
labs, universities, and international collaborations in a manner that
will enable this work to proceed in a coordinated manner.
NUCLEAR POWER 2010
The President's Budget supports continuation of Nuclear Power 2010
in fiscal year 2005 to demonstrate, in cost-shared cooperation with
industry, key regulatory processes associated with licensing and
building new nuclear plants in the United States by the end of the
decade. The requested funds of $10 million would support the activities
associated with achieving NRC approval of early site permits and the
development of Combined Construction and Operating License
applications. (It is also critical that the Department identify the
business conditions under which power generation companies would add
new nuclear capacity and determine appropriate strategies to enhance
such investment. In fiscal year 2005, the Department will continue to
evaluate and develop strategies to mitigate specific financial risks
associated with the deployment of new nuclear power plants.)
In December, the Department issued a solicitation inviting
proposals from teams led by power generation companies to initiate New
Nuclear Plant Licensing Demonstration Projects. Under these cost-shared
projects, power companies will conduct studies, analyses, and other
activities necessary to select an advanced reactor technology and
prepare a site-specific, technology-specific Combined Operating License
application. These projects will provide for NRC design certification
and other activities to license a standardized nuclear power plant
design. The Department expects to award at least one project in this
fiscal year. The focus of activities in fiscal year 2005 for these
projects will be on development of the Combined Operating License
application.
UNIVERSITY REACTOR FUEL ASSISTANCE AND SUPPORT
The Department is very pleased with the progress we have made in
reversing the decline in nuclear engineering in the United States. With
significant support and encouragement from this body and your
colleagues in the House of Representatives, we have played a large role
in completely reversing the decline in undergraduate enrollments in
this area of study that began in 1993 and continued through 1998. In
1998, the United States saw only around 500 students enroll as nuclear
engineers--down from almost 1,500 in 1992. After several years of
focused effort, the United States now has over 1,300 students studying
nuclear engineering. That number is set to increase further, as strong
programs--such as at Purdue and Texas A&M--continue to grow and we see
new programs start at schools such as South Carolina State University,
the University of South Carolina, and the University of Nevada-Las
Vegas.
The growth of nuclear energy in the United States is dependent on
the preservation of the education and training infrastructure at
universities. The research conducted using these reactors is critical
to many national priorities. Currently, there are 27 operating
university research reactors at 26 campuses in 20 States. These
reactors are providing support for research in such diverse areas as
medical isotopes, human health, life sciences, environmental
protection, advanced materials, lasers, energy conversion and food
irradiation.
The most exciting development in University Reactor Infrastructure
and Education Assistance is the Innovations in Nuclear Infrastructure
and Education (INIE) Program established in fiscal year 2002. In fiscal
year 2003, two additional university consortia were awarded, bringing
the total to six INIE grants, providing support to 24 universities in
19 States across the Nation. The consortia have demonstrated remarkable
collaborative efforts and strong formation of strategic partnerships
between universities, national laboratories, and industry. These
partnerships have resulted in increased use of the university nuclear
reactor research and training facilities, upgrading of facilities,
increased support for students, and additional research opportunities
for students, faculty and other interested researchers. We are very
pleased that the President's Budget includes $21 million for the
University Reactor Infrastructure and Education Assistance program for
fellowships, scholarships, nuclear engineering research, and for
critical support to university research reactors, all of which will
help address this shortage of well-trained nuclear scientists. (We have
modified the structure of this program for fiscal year 2005. I am
pleased to report that the President's request includes a small but
important element to provide scholarships and graduate fellowships to
students studying the vital and too-often overlooked discipline of
health physics. The Department is concerned that the Nation may soon
not have the trained health physicists who are needed to assure the
safety of all nuclear and radiological activities. With this budget, we
begin building a program to reverse the negative trends in this field
as we have already done in nuclear engineering.)
In another change, we will transfer responsibility for the shipment
of spent research reactor fuel to the Office of Civilian Radioactive
Waste Management, which is to become the Department's central expertise
in the management of spent fuel.
One final note in this regard, Mr. Chairman. I am sure that you
have noticed that no funding is requested for the Nuclear Energy
Research Initiative (NERI) in fiscal year 2005. While this program has
successfully spurred U.S. nuclear energy R&D, we believe that the time
has now come to integrate the program into our main-stream R&D
programs. We will continue to make peer-reviewed NERI awards to
university-based researchers who work in areas relevant to our
Generation IV, Nuclear Hydrogen, and Advanced Fuel Cycle Initiative
programs. With this step, we will engage NERI researchers at
universities in the exciting, first-class research we are pursuing in
cooperation with countries all over the world.
RADIOLOGICAL FACILITIES MANAGEMENT
This budget request also includes $69.1 million to maintain
critical research, isotope and space and national security power
systems facilities at Oak Ridge National Laboratory, Los Alamos
National Laboratory, Sandia National Laboratory, and Brookhaven
National Laboratory in a safe, secure, and cost effective manner to
support national priorities.
The fiscal year 2005 budget request also includes $20.6 million to
continue baseline operations and begin construction of the Uranium-233
project at Oak Ridge National Laboratory. This project is aimed at
stabilizing materials left over from the Cold War to address a Defense
Nuclear Facilities Safety Board recommendation, while extracting
isotopes from the uranium that are needed for very promising medical
research.
INL--DOE'S COMMAND CENTER FOR NUCLEAR R&D
This budget supports the Secretary's realignment of the mission of
the Idaho National Engineering and Environmental Laboratory to focus
the future of the site on nuclear research and development. The
Department is in the process of establishing the Idaho National
Laboratory, which will combine the resources of the INEEL and the
Argonne-West site. As the Department's leading center of nuclear
research and development, a core mission of this laboratory is advanced
nuclear reactor and fuel cycle technologies, including the development
of space nuclear power and propulsion technologies. The new Idaho
National Laboratory will play a vital role in the research and
development of enabling technologies for the Next Generation Nuclear
Plant, which will support the Department's long-term vision of a zero-
emissions future free of reliance on imported energy.
The Department issued a request for proposals in February to find a
management team to reduce costs and build expertise at the INL. The
Department's nuclear energy program involves the collective talents of
universities, the private sector, international partners and many of
our other national laboratories--Argonne, Los Alamos, Sandia and Oak
Ridge among them. However, the rebuilding of the Department's nuclear
power research and development program will be centered at INL. While
environmental cleanup remains an important focus at the Idaho site,
real progress is being made that will aid in the expansion of nuclear
research and development.
Developing a central research laboratory is a major step forward
for the nuclear energy program. We will join the other key energy
programs at the Department by having a central, dedicated research site
at which we can centralize our infrastructure investments and build the
expertise needed to accomplish our program goals. A central lab also
helps us minimize the shipment of nuclear materials across the country
and allows us to bring our nuclear materials together in a single,
secure location. We also expect that our new lab will become a major
player in the education of the next generation of nuclear energy
technologists that this Nation will need to assure our energy security
in the future.
CONCLUSION
This concludes my prepared statement. Your leadership and guidance
has been essential to the progress the program has achieved thus far
and your support is needed as we engage the tasks ahead.
I would be pleased to answer any questions you may have.
Senator Domenici. Thank you very much. Well, the fact that
we've started at nothing and put these things in is a good
thing to repeat, but it's pretty pathetic when you note that
most of them were things everybody knew we needed. It wasn't
like this was a vision from on high, and every year because
they didn't come out of the administration made it harder and
harder to fund them. And now when we get a tighter and tighter
budget, it's, you know, they're the easiest ones to choke.
So, you know, you're getting 20 and 30 percent cuts in
yours, while over here on the side they're saying we're for
nuclear energy, right? You don't have to comment. You work for
the administration.
STATEMENT OF SENATOR PATTY MURRAY
Senator Murray, I note you're on a tough time schedule and
I'm most appreciative you would come today so I yield to you.
PACIFIC NORTHWEST NATIONAL LABORATORY FACILITIES
Senator Murray. Well, thank you very much, Mr. Chairman.
Thank you for your tremendous work on this committee over the
years and your leadership in many directions. I just have a
couple of questions for Dr. Orbach today. Dr. Orbach, you note
the Pacific Northwest National Laboratory, PNNL. In my State
it's one of the Department of Energy's multi-program
laboratories and is under your stewardship at the--as Director
of Science.
PNNL is a very valuable asset to the State of Washington
and it's going to be an enduring asset to the Tri-Cities
community after Hanford clean-up is completed. I think you know
there's been considerable concern over the schedule for the
cleaning up of the 300 area and the replacement of the many
facilities that currently house approximately 1,000 staff at
PNNL. That space, I think it's 700,000 square feet, represents
a third of PNNL's total laboratory space.
The Tri-Party Agreement required clean-up of the Columbia
River corridor including that 300 area by 2018. As I understand
it, current proposed clean-up contracts assume a 2012 or 6-year
earlier completion date. That would require those 1,000 PNNL
employees to exit the 300 area facility by 2007. This budget,
the fiscal year 2005 budget, has no funding for replacement
facilities in the 300 area and I see no scenario where new
facilities can be in place by fiscal year 2007.
I noticed in your written testimony you talk a great deal
about facilities and infrastructure and planning, but I don't
see any plan from you or DOE on how those facilities at PNNL
are going to be replaced. As owner of PNNL, Mr. Orbach, what
are you doing to lead the effort in the Department to seek an
aggressive program to replace those facilities at PNNL, which
is your laboratory?
Dr. Orbach. Thank you, Senator, for the question. We are as
concerned as you are over the 1,000 staff members who have been
so productive for our country. I have visited PNNL often and it
is a magnificent laboratory and your assessment of its future
is mine as well, and also the community's.
We have put together some funding from our own budget from
2003 and from fiscal year 2004, and there are funds in the
fiscal year 2005 budget which we believe can help in this
process, but it will require a reprogramming to use the fiscal
year 2003 and fiscal year 2004 funds and so I hope you will
help us in the reprogramming request.
Senator Murray. So would you support a reprogramming in the
fiscal year 2004 budget for that?
Dr. Orbach. Yes.
Senator Murray. You do, okay.
Dr. Orbach. We may require it for 2003, 2004, and for 2005
we will reassess our options.
Senator Domenici. Did you ask him if they had?
Senator Murray. I was about to. I will.
Senator Domenici. Good.
Senator Murray. Had you----
Dr. Orbach. And I want to say also we're working very
closely with the contractor, Battelle, to work together to
provide the facilities for the staff who will be displaced from
the 300 area. Our target date is October 2007, which as we
understand it, would be the latest that the Office of
Environmental Management could begin the clean-up in order to
satisfy the river corridor agreement that it has by 2012. And
we believe that by working with Battelle, we can achieve the
facilities that are required to house the staff. They will be
new facilities, they will be more efficient facilities, and in
the long run we hope that this will be a very positive outcome
for the laboratory.
Senator Murray. Well, we need to get a reprogramming
request from you as soon as possible then to get this going
because in order to replace your facility there we're going to
have to have some planning in place fairly quickly. And, Mr.
Chairman, I really am concerned about DOE's initial inability
to coordinate its clean-up and its science programs, and I
think we have to be very concerned about DOE's planning process
for both the labs and the clean-up sites.
I know that the Secretary's office has become engaged in
this matter and I've personally spoken with Mr. McSlarrow and I
appreciate the Secretary and Mr. McSlarrow's involvement. I
wish it hadn't risen to that level, but I do think we need
direction from you, reprogramming requests, and to get this
going because 2007 is not that far off when we're talking about
an entire facility or large facility there that needs to be--we
need to know where we're going with that, so I want to hear
more from you on this.
Dr. Orbach. You're absolutely right, Senator, and I have
just met with Dr. Len Peters, the director at PNNL, and we've
talked about the need to get moving quickly in order to begin
the planning and construction phase. It's my view that if we
start now that we can in fact meet that October 2007 date.
Senator Murray. When do we expect to see the reprogramming
request from you?
Dr. Orbach. We need to process it through the Department
and I'm hopeful that we can get it to you within a month.
Senator Murray. All right. Well, Mr. Chairman, thank you
very much. I have some other questions. I will submit them for
the record and look forward to working with you on this.
Senator Domenici. You understand if we get that, unless
there's something I'm not aware of, I will hurry up. It comes
to me and my friend in the House and we'll try to----
Senator Murray. I appreciate that very much.
Senator Domenici [continuing]. Try to hurry it up.
Dr. Orbach. Thank you.
Senator Murray. Thank you.
Senator Domenici. Senator, would you like to inquire,
Senator Craig?
STATEMENT OF SENATOR LARRY CRAIG
Senator Craig. Thank you, Mr. Chairman. I apologize for
running late.
Senator Domenici. I haven't asked any questions yet, but I
would like to yield to you for a few remarks.
Senator Craig. Well, why don't we move right ahead into the
questioning? You proceed with questions and then I'll come to
questions. That would be appropriate.
Senator Domenici. I was going to make an observation since
this was the first time off the Senate floor this year that we
have your presence at a committee hearing and I want the record
to reflect that we have a very distinguished Senator here. He
has a big record. Yesterday he completed work on a bill where
he spent more time, took more amendments, defeated more
amendments, all in pursuit of the bill that he wanted, that
many wanted, only to find that in the end he had to vote
against the bill.
Senator, I had been leaving for a little while and taking
naps, so when I came in, my staff said, it's very important you
be here for the last vote because it's an important thing for
your constituency, as you might recall, you were there. And I
walked in and made the wrong vote. I voted aye because I had
been wanting to help pass that bill. It turned out everything
had kind of blown up and you were advising everyone to vote no.
How many no votes? Everybody?
Senator Craig. Ninety-something, yes. I don't think it was
a demonstration of my power whatsoever. I wish it were, Mr.
Chairman.
Senator Domenici. It was.
Senator Craig. But I will tell you, in the words that I've
been here working with you and a good many other of our
friends, I've learned a few lessons, and I've also learned that
something that goes bad does not necessarily get better and
that you have an opportunity to stop something and that's what
I did yesterday.
Senator Domenici. Yes.
Senator Craig. Because it had grown worse than we had hoped
it would be and because of the rules of the Senate, something
those who want to obstruct can obstruct absolutely. We found
that on a couple of issues that you and I had been working on
in recent times and some of our friends on the other side I
think have determined that this is a year of total
obstructionism, and so we're going to have to work our way
through those problems. Thank you.
Senator Domenici. I do want to tell you, Senator, I'm most
appreciative of all your work that you've put into the energy
bill, and there's a nice story out today that the Minority
Leader expects a victory on the floor and so it's just a matter
of when. No, there are going to be some Senators like the ones
you mentioned that wanted to obstruct that bill, but how many
days are they going to get on it to make our leader frustrated?
I don't know. I don't think it's going to frustrate him if they
take a few days because he's made up his mind that he wants to
send this bill to the House so that the Senate can at least go
on record that they've produced one.
SCIENCE PRIORITIES
Having said that, let me move quickly. Dr. Orbach, can you
explain to me the department's priorities contained in this 20-
year plan and how they were selected? Can you do that very
quickly?
Dr. Orbach. Yes, thank you, Mr. Chairman. We began an
initial process in my office through our Associate Directors
who headed each of our six programs. That set of
recommendations is important because it began first with the
research money. We took into account the energy bill
authorization level and subtracted from the out-years the cost
of doing research. The reason I stress that is that these
facilities are not meant to displace our ability to do
research. Research comes first. They then provide us the
ability to do that.
With the recommendations from the Associate Directors, we
went out to our advisory committees, and what you see today
reflects the advice, priorities that the advisory committee set
with regard to the importance of the science. This is a
science-driven prioritization.
I then had over 50 recommendations from the advisory
committees and I had to make them fit under the energy bill's
authorization levels and I had to make them fit also with
regard to time, and when we got done we had 28 facilities that
survived.
I was in the unenviable position of having to prioritize
across fields, but the response of the community has been very
positive and I believe that the scientific community is very
supportive of this prioritization.
Z MACHINE APPLICATION TO THE SCIENCE PROGRAM
Senator Domenici. Thank you very much. Now let me ask you a
question about something technical and see if you can agree to
do something for us. Sandia National Laboratory has developed a
power plant concept known as the Z machine. You must have heard
of it. It has made all kinds of news, including the front page
of Time magazine. Shortly after we had agreed to pay for NIF
over in California because the Z hadn't quite made it, we got a
big announcement that Z was ready to go. What we've got now is
about $3 billion invested in NIF and we've got Z going, a
little cheap machine.
This machine is the world's most powerful x-ray source, and
extensive experiments have led the technology to make
breakthroughs that lead to record fusion neutron yields.
Although this program has been funded by NNSA, and that's part
of the nuclear preparedness program of the country, the low
cost and high efficiency seem attractive to the development of
commercial fusion power. In fact, this facility has been
identified by the Fusion Energy Science Advisory Committee as
one of the three promising approaches to internal fusion
energy.
I would greatly appreciate it if you would visit Sandia and
spend some time with the scientists associated with Z and would
be willing to visit the facility. After you've done that and
had the opportunity to evaluate it, I would be interested in
your thoughts on its application to the science program. Can
you do that?
Dr. Orbach. Yes, Mr. Chairman, I'd be delighted. I've been
briefed on the Z-Pinch machine. It is a magnificent
accomplishment and I am scheduled to visit Sandia on the 24th
of May.
Senator Domenici. That's great.
Dr. Orbach. And I will be spending a good portion of my
time there to talk to the people on the Z-Pinch. They have some
very clever ideas for renewing it with a liquid wall, which
might help in the fusion energy area.
GENOMES TO LIFE PROGRAM
Senator Domenici. I have a question with reference to ITER,
but I'll just submit that and I'll move on to Genomes to Life.
This project focuses on the utilization of genome maps and
understanding of genome, or genomic functions in seeking
solutions to DOE missions. Funding increases by $4 million to
$67 million from its inception. It's accurate to say that the
entire program was created by virtue of a discussion which very
few people know about which took place in my office with a very
distinguished scientist named Charles DeLisi. You may or may
not know him but he was with the NIH.
He decided he didn't like the NIH because they didn't like
genome research, believe it or not. Think of that. They covet
it today as their great baby, but they literally didn't want to
do it, so he left and went to the Energy Department. He came to
my office and talked me into funding it. Believe it or not,
when I got it funded, NIH decided that they should too, so it
turned out--you wonder why DOE and NIH are in it, that's why,
because I introduced a bill, put it all in DOE, and that
brought the people who are for NIH to my office and we changed
the bill so they both got funding. Great things happened much
quicker than expected in producing the genome mapping of the
human system. You're aware of that.
PROTEIN AND MOLECULAR TAGS FACILITY
I note that you plan to start project engineering and
design for dedicating a facility, a facility for the production
and characterization of protein and molecular tags. I
understand that you will conduct a competition for the site of
that facility. What's the status of that competition? How will
this benefit the Genomes to Life program?
Dr. Orbach. First of all, Mr. Chairman, I want to thank you
for your support----
Senator Domenici. You're welcome.
Dr. Orbach [continuing]. Of genomics and the Genomes to
Life program. It has been a tremendous success. What this
project does is to take us from the structural elements that we
have been able to study through our sequencing to the dynamics
of how cells actually function, and this particular factory
will produce, as you noted, proteins for our scientists in the
United States which are tagged.
We are currently in the final stages of preparing the
competition amongst all of the DOE laboratories for the
facility, and we are working towards the formal RFP as we
speak.
GENOME SCIENCE
Senator Domenici. How do you generally, for 2 minutes,
think genome is going? The evolution of the genome science, is
it going well?
Dr. Orbach. It's going wonderfully. The relationship with
NIH is as you described it. The DOE has the ability to create
these large-scale machines using, as you said in your opening
remarks, the physical sciences that we have available. This is
truly a factory. This will produce proteins that are tagged so
there will be a common way of identifying them and visualizing
them in cellular function. Your assistance and really
initiation of this project has had phenomenal impact.
Senator Domenici. You know, it's interesting when people
look around and read from time to time some experts tell us,
Greenspan testifies and my friend, Senator Craig, gets a hold
of it and goes to the floor and gives a speech because
Greenspan says productivity went up 8.2 percent and it doesn't
bother him because he doesn't have too much hair, but people
that have got a lot of hair, they go bald-headed when they hear
such a thing. That's incredible.
But I'll give you an example. We produced the entire
mapping of the protoplasm of the human genome in half the time
predicted when we started the program, half. It was supposed to
take 20-plus years, it took 10. Why? Well, because the machines
that we used to do it, computers, were never imagined to have
the capacity in such a short time that they had. That's a
perfect example of productivity. The productivity was
incredible in producing the mapping of the human genome, wasn't
it? It was so big that it caused us to produce the most complex
set of information in half the time, which is the genome
mapping of the human body.
I think we haven't even come close to its utility, is that
correct?
Dr. Orbach. Absolutely, and what you've said is true in
spades. The sequencing facility we have in Walnut Creek used to
cost $2 a base pair to sequence. It now costs two-tenths of a
cent, so it's a factor of 1,000 increase in productivity that
this factory has achieved. It can now sequence two human
genomes a year.
Senator Domenici. Entirely?
Dr. Orbach. Entirely, so that 10 years is now compressed
into 6 months.
ADVANCED REACTOR HYDROGEN CODE GENERATION PROJECT
Senator Domenici. Just a couple more. This one has to do
with Senator Craig and I. Mr. Magwood, general funding under
the title of nuclear energy, last year as part of the 2004, $15
million was included in the Generation IV initiative so the
Department could begin the research, development, design work
on an advanced reactor hydrogen code generation project at
Idaho National Laboratory.
Senator Craig and I sent a letter to Secretary Abraham
urging him to make a competitive solicitation for this project.
The response we received, signed by the Secretary, reassuring
Senator Craig and me that the Department intended to undertake
this design competition this year. Do you recall that, Senator?
Senator Craig. I do.
Senator Domenici. Now, can you please tell us what you have
prepared for the budget and the schedule for this solicitation,
and what you believe your funding requirements will be for
2005? Are the funds requested sufficient to support the
engineering design of at least two competing concepts as
spelled out in H.R. 6 prior to selecting the final choice?
Mr. Magwood. Mr. Chairman, we have been working very hard
over the last several months since the 2004 appropriation was
passed to put in place the kind of program that you're
describing. We do expect to have some sort of solicitation
available for the industry and others to look at this fiscal
year, fiscal year 2004, and we believe that the funding that we
have available in fiscal 2004, and what we have requested in
fiscal 2005, which by the way is an increase for this activity
of about $4\1/2\ million over the 2004 request, 2004
appropriation rather, is sufficient to move forward.
Obviously, if we move forward with a major project,
significantly more funds will be needed, but at this stage of
the game, we believe that what we've asked for is enough.
WORLD NUCLEAR POWER PLANTS UNDER CONSTRUCTION ON ORDER
Senator Domenici. I have two other questions for you, Mr.
Magwood, and then I'll proceed to yield to Senator Craig. One,
could you get for us at your earliest convenience a current
status of the construction of nuclear power plants in the
world? Get us a report that says as of this date, whatever date
that is, three plants are being built in Taiwan, two in China,
one somewhere else, so we would know just how many plants the
world is building, and if you can, tell us what their status is
and what kind they are, we'd appreciate it.
Mr. Magwood. Be happy to do that.
[The information follows:]
WORLD NUCLEAR POWER PLANTS UNDER CONSTRUCTION AS OF JANUARY 1, 2004
--------------------------------------------------------------------------------------------------------------------------------------------------------
Year of
Capacity Expected
Country Name Location Type \1\ (MWe) Commercial Comments
Operation \2\
--------------------------------------------------------------------------------------------------------------------------------------------------------
USA............................... Browns Ferry 1....... Decatur, AL.......... BWR.................. 1,065 2007 Approximately $1.7
billion is being
invested over five
years to return this
unit, which has not
operated since 1985,
to service.
Argentina......................... Atucha 2............. Buenos Aires......... PHWR................. 962 NA Suspended
indefinitely.
China............................. Tianwan 1............ Jiangsu.............. VVER................. 1,000 2004
China............................. Tianwan 2............ Jiangsu.............. VVER................. 1,000 2005
China--Taiwan..................... Lungmen 1............ Taipei............... BWR.................. 1,300 2006
China--Taiwan..................... Lungmen 2............ Taipei............... BWR.................. 1,300 2007
India............................. Kaiga 3.............. Karnataka............ PHWR................. 202 2007
India............................. Kaiga 4.............. Karnataka............ PHWR................. 202 2007
India............................. Kudankulam 1......... Tamil Nadu........... VVER................. 917 2007
India............................. Kudankulam 2......... Tamil Nadu........... VVER................. 917 2008
India............................. Rajasthan 5.......... Rajasthan............ PHWR................. 202 2007
India............................. Rajasthan 6.......... Rajasthan............ PHWR................. 202 2008
India............................. Tarapur 3............ Maharastra........... PHWR................. 490 2007
India............................. Tarapur 4............ Maharastra........... PHWR................. 490 2006
Iran.............................. Bushehr 1............ Bushehr.............. PWR.................. 915 2005
Japan............................. Hamaoka 5............ Shizuoka............. BWR.................. 1,325 2005
Japan............................. Higashidori 1........ Aomori............... BWR.................. 1,067 2005
Japan............................. Shika 2.............. Ishikawa............. BWR.................. 1,304 2006
North Korea....................... LWR-Project 1........ Kumho................ PWR.................. 1,040 NA Construction
suspended pending a
decision, to be made
before 12/1/04, on
whether support for
this project by the
Korean Peninsula
Energy Development
Organization (KEDO)
should continue.
Romania........................... Cernavoda 2.......... Cernavoda............ PHWR................. 655 2007
Russia............................ Balakovo 5........... Saratov.............. VVER................. 950 2008
Russia............................ Kalinin 3............ Tver................. VVER................. 950 2004
Russia............................ Kursk 5.............. Kursk................ RBMK................. 925 2006
Russia............................ Rostov 2............. Rostov............... VVER................. 950 2007
South Korea....................... Ulchin 5............. Ulchin............... PWR.................. 950 2004
South Korea....................... Ulchin 6............. Ulchin............... PWR.................. 950 2005
Ukraine........................... Khmelnitski 2........ Neteshin............. VVER................. 950 2004
Ukraine........................... Rovno 4.............. Kuznetsovsk.......... VVER................. 950 2004
---------------------------------------------------------------------------------------------------------------------
Total....................... ..................... ..................... ..................... 24,130 .............
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ BWR-Boiling Water Reactor; PWR-Pressurized Water Reactor; PHWR-Pressurized Heavy Water Reactor; LMFBR-Liquid Metal Fast Breeder Reactor; VVER-Soviet-
designed PWR; RBMK-Soviet-designed boiling water, graphite-moderated, pressure-tube reactor.
\2\ NA-Not Announced.
Sources: IAEA Power Reactor Information System; Uranium Information Centre/World Nuclear Association; Nuclear News 2004; organization press releases/web
pages.
WORLD NUCLEAR POWER PLANTS ON ORDER AS OF JANUARY 1, 2004
----------------------------------------------------------------------------------------------------------------
Year of
Capacity Expected
Country Name Type \1\ (MWe) Commercial
Operation \2\
----------------------------------------------------------------------------------------------------------------
China............................... Lingdong 1............. PWR.................... 1,000 2012
China............................... Lingdong 2............. PWR.................... 1,000 2012
China............................... Sanmen 1............... PWR.................... 1,000 2012
China............................... Sanmen 2............... PWR.................... 1,000 2012
Finland............................. Olkiluoto.............. PWR.................... 1,600 2009
India............................... Kaiga 5................ PHWR................... 489 NA
India............................... Kaiga 6................ PHWR................... 490 NA
India............................... Rawatbhata 7........... PHWR................... 490 NA
India............................... Rawatbhata 8........... PHWR................... 491 NA
Japan............................... Fuikishima 7........... PWR.................... 1,325 2009
Japan............................... Tomari 3............... PWR.................... 912 2009
Japan............................... Fuikishima 8........... PWR.................... 1,325 2010
Japan............................... Higashidori 1-2........ BWR.................... 1,320 2011
Japan............................... Shimane 3.............. BWR.................... 1,375 2011
Japan............................... Tsuruga 3.............. PWR.................... 1,500 2011
Japan............................... Higashidori 2.......... BWR.................... 1,320 2012
Japan............................... Ohma................... BWR.................... 1,350 2012
Japan............................... Tsuruga 4.............. PWR.................... 1,500 2012
Pakistan............................ Chashma 2.............. PWR.................... 300 2011
South Korea......................... Shin Kori 1............ PWR.................... 950 2008
South Korea......................... Shin Kori 2............ PWR.................... 950 2009
South Korea......................... Shin Wolsong 5......... PWR.................... 950 2009
South Korea......................... Shin Kori 3............ PWR.................... 1,350 2010
South Korea......................... Shin Wolsong 6......... PWR.................... 950 2010
South Korea......................... Shin Kori 4............ PWR.................... 1,350 2011
South Korea......................... Ulchin __.............. PWR.................... 1,350 2015
South Korea......................... Ulchin __.............. PWR.................... 1,350 2015
---------------------------------------------------------------------------
Total......................... ....................... ....................... 28,987
----------------------------------------------------------------------------------------------------------------
\1\ BWR-Boiling Water Reactor; PWR-Pressurized Water Reactor; PHWR-Pressurized Heavy Water Reactor.
\2\ Not Announced.
Source: Uranium Information Centre/World Nuclear Association.
ADVANCED FUEL CYCLE INITIATIVE
Senator Domenici. You know, Mr. Magwood, some of us in this
Congress are very happy that the President and the Secretary
have finally come around. They're talking about trying to stop
proliferation of Weapons of Mass Destruction in the broadest
sense, stop the proliferation of the great scientists, you know
about that. We're trying to stop the flow of plutonium, got a
big program going, highly enriched uranium, we've bought a
bunch of it from them, a lot of things, cost a lot of money,
but we've started.
Now, I am very concerned. With that going and the threat of
nuclear proliferation, what's the basis for reducing funding
for this account, Advanced Fuel Cycle Initiative, from $66
million to $46 million? Would you update the committee as to
what you hope to achieve this year, when you expect to have a
project ready for deployment?
Mr. Magwood. Yes, Mr. Chairman. First, I should say that
the Advanced Fuel Cycle Initiative really has shown tremendous
progress over the last several years and continues to show
progress. For example, we have successfully demonstrated on a
laboratory scale the separation of pure uranium from spent
fuel, to the point of 99.999 percent purity.
We've also demonstrated on a laboratory scale the
separation of a mixed neptunium/plutonium fuel that we believe
could form the basis of a new proliferation-resistant
recyclable fuel for the future, and this work is going to
continue in increasing scale in fiscal 2005.
So our primary missions for this program will continue. We
will continue to make progress. The reduction that you spoke of
is primarily because we are deferring the project of a large
commercial-scale facility for UREX+ until we've gained greater
confidence that this technology is really viable commercially.
That said, there are--we are going to continue to fund our
primary missions for the program. That will continue.
Senator Domenici. Senator Craig.
Senator Craig. Mr. Chairman, thank you very much. Let me
use my time both to ask questions and make in positioning those
questions somewhat of an opening statement, and I'll address my
questions at you, Bill, and I do thank all the rest of you for
being here.
ADVANCEMENT OF NUCLEAR ENERGY TECHNOLOGY
Bill, your prepared statement starts off by talking about
the times not so many years ago when this country was very
close to abandoning advanced nuclear reactor research and
development. I remember those years very well. As a matter of
fact, the chairman and I wrote a letter to the then-Secretary
of Energy, Federico Pena, and we told him this in our letter,
and I'm going to quote from that letter, that was 1997.
The Chairman and I said, the coming fiscal year will mark a
notable event in the history of your agency and its
predecessors. For the first time since the establishment of the
Atomic Energy Commission more than 40 years ago, the United
States Government has no program to further the development of
nuclear energy for the production of energy. This change, in
the view of many, of the technology's critics is long overdue.
However, in the view of many members of the Senate and in the
view of the Nation's energy experts, the lack of a strong and
reliant nuclear energy research and development program
represents a major gap in the Department of Energy's research
and development agenda.
The year is now 2004. We've traveled a long way on nuclear
energy since I signed that letter along with the chairman. I
appreciate your efforts in the progress we've made and I mean
that most sincerely, but I must suggest to you that the state
of our nuclear energy program is nearly as fragile and
vulnerable today as it was when we sent that letter in 1997,
and I will further suggest that the nuclear energy budget
proposal for fiscal year 1995 is as--is a--2005--is a discredit
to the progress that we've made. I believe the chairman has
made similar strong statements.
INEEL SOLICITATION AND INFRASTRUCTURE
That's the basis of my following questions, the question
that the chairman just asked was my first question, and I
appreciate him asking it. So, having heard that answer, Bill,
let me ask you this question. Since you will be issuing a
solicitation, why have you not engaged the experts at the Idaho
labs, the INEEL and Argonne, that are supposedly DOE's command
center of nuclear R&D? To my knowledge, you have not engaged
anyone in the lab in this initiative yet. Is that true?
Mr. Magwood. In the actual solicitation?
Senator Craig. In the process.
Mr. Magwood. In the process, not yet, and that's because we
are still working within my office to put a plan on the table
where we can sit down with those lab scientists and discuss the
ins and outs and the particulars of it. It's been my experience
that before sitting down with the scientists who are trying to
deal with very technical issues, it's been my job to set the
framework as to how to accomplish a particular mission, and
that's proven successful in the past and that's what we're
implementing this time.
Senator Craig. Well, I thank you for that, because the
Office of Nuclear Energy is currently responsible, I think is
the lead program office for the INEEL. Because you have this
lead, most of the costs for supporting the INEEL's
infrastructure being transferred over to the nuclear energy
budget, my conclusion is that the nuclear energy budget is not
growing sufficiently to support the infrastructure that your
program is becoming responsible for at Idaho.
I think this leads to a very dangerous situation. You can
either not support the infrastructure adequately, a program
that some would say already exists, or you can raid your small
research budget to support the infrastructure. Over time, the
nuclear energy program might reach a point where it is doing
very little research but is merely supporting an aging
infrastructure. Either way, it is a bad situation for nuclear
energy, for Idaho, and for the country from my perspective.
We even had a recent example, I think, with the Advanced
Test Reactor, the only operating test reactor in Idaho and one
of the few in the DOE complex. What happened? It was shut down
because the safety documentation was not up to date. Lack of
resources, lack of initiative, down goes the reactor. Question:
Do you believe the budget you are requesting is sufficient to
fully support the Idaho infrastructure as well as research you
are charged with doing?
Mr. Magwood. Senator, I would say that clearly--you use the
word fragile--and I clearly agree with that. I think that the
program is at a fragile state at this point in history, but
nevertheless, still poised for some considerable growth. In the
case of the infrastructure and research program that we've laid
out for fiscal 2005, I do believe that it's sufficient to meet
the primary missions that we've set out for ourselves.
We have a long way to go to build this laboratory. It's
going to be a long, hard process that we think will take 10
years to really accomplish. So while this fiscal year 2005
budget request is a first step, a fragile first step, it is
only the first step, and I think that what we do in fiscal
years 2006 and beyond will probably be more important to the
future of the laboratory than what we've done in 2005.
Senator Craig. Well, I guess my greatest concern, one last
comment----
Senator Domenici. Sure.
Senator Craig [continuing]. Mr. Chairman, it is that
tearing down and then building back can be a very expensive
process, one that I doubt this country could afford to do or
would be willing to do. Sustaining and building on a sustained
base is something that we can afford to do and should.
Now finally, I have many concerns, I think, with DOE's
request for the proposals for the Idaho lab. This is not, I
think, the forum to explore all of those concerns, but let me
say this. The Idaho congressional delegation will be sitting
down with the Secretary. We are very concerned about DOE's
draft RFP. It does not reflect, we believe, the principles
necessary to build a sustainable new mission. We--and I say
this, Mr. Chairman--I know that Los Alamos is facing a
recompetition in its operating contract in the near term.
Senator Domenici. Yes.
Senator Craig. I think that we have at stake some very
important issues to address with DOE as we craft RFP's for the
sustainability and growth of these laboratories. So I say that
as now not just an observer, but one who's fully engaged in an
RFP that--the devil is in the details, and we're very much
focused on the details.
I thank you very much, Bill, to all of you thank you much.
Mr. Chairman, thank you.
ENERGY EFFICIENCY PROGRAM DIRECTION
Senator Domenici. Mr. Garman, did we fail to ask you
something that is important in your opinion that you want put
on the record?
Mr. Garman. I would like to mention one thing, Mr.
Chairman.
Senator Domenici. Please do.
Mr. Garman. And I appreciate the opportunity. You said
something a little earlier about gaining control of the program
and understanding and being able to be accountable for the
things we spend----
Senator Domenici. Yes.
Mr. Garman [continuing]. And to assure the taxpayers are
receiving value for their dollars. I think the committee will
note that we have sought an increase in funding for program
direction, which is not a very popular thing to do and a very
difficult thing to talk OMB, much less the Congress, into
doing.
But we've done that and we were successful in making our
case to OMB and we think it's important, because quite frankly,
we heard what you said in your direction to us in prior
conference reports that we must have an increased vigilance in
project management and that we take project management very,
very seriously. And candidly, in the past we ceded some of our
responsibilities to contractors and others that we need to re-
federalize to ensure that we're doing a good job. More money
will actually get to the lab at the bench doing R&D, which is
the important thing, and so I do leave you with that plea and
thank you for that opportunity.
Senator Domenici. Well, thank you. Thank you to all three
of you and for the record, I'd like to close with two things.
First, it's my understanding that Senator Stevens from Alaska
has questions he's going to ask of you. They're going to be
submitted. Please answer them as quickly as you can. I ask that
any other questions submitted to you by me or any other members
of the committee receive your response within 2 weeks, and
again, I said if you can't do it, tell us so we don't sit over
here getting mad at you for not doing your work. The record
will be left open for 2 weeks for members to submit questions,
so watch for them also.
YUCCA MOUNTAIN
Senator Craig, I would just like to talk with you a moment
about the status of nuclear power in the world and what a
terrible mistake the United States has made, is making. You
know, there is nobody, no country trying to build a Yucca
facility, just America. France has 87 percent of its facility
from nuclear. Countries have lots of nuclear power. So I ask
for the record for conversation, that we be able to talk about
what's even happening today, how many new reactors are being
built.
Senator Craig. Good point.
Senator Domenici. Lots of them. I don't mean 50, but I can
check off six or eight that I know about. What are we doing?
Nothing. Every year we have a fight over how much is enough for
Yucca and we all with bated breath wonder, is the Nuclear
Regulatory Commission (NRC) going to really license them,
aren't they?
And if you go to Europe or France and you'd say, I'd like
to see your spent fuel rods. Oh, fine, we'll take you. They put
you in a bus and blindfold you--no they don't, but they could--
and say, we're here and let you out. You walk into this
beautiful building, looks like a great schoolhouse, modern
schoolhouse, and once you're in the doors, they say, now you
can look all around. And you look around and you say, this is
where all the nuclear waste is, and you say, well, what are you
talking about. Well, now you can just look down and you look
down and it's all in the floor in casks, glass casks. Spent
fuel rods are in there and the whole thing is filled with glass
of some kind and you walk all over the place and there's no
radioactivity escaping, it never will, and they may take it out
of there in 100 years. They plan to get it out in 50 but
they're wondering how crazy, why do we want to do that and just
disturb everybody. It's very safe.
Here we sit with the tail end of this tiger haunting us,
the greatest engineers in the world. This morning we read we're
following old Rover around up there on the red planet, right?
Trying to find out how much water was up there, how many
thousands of years ago, and America can't find a way to dispose
of in a safe manner high-level waste so you can build some
nuclear reactors.
To me, one of the most astounding failures on the part of
talent and leadership that the world has ever seen, and we're
all worried about energy. Now we're going to run out of the
next one, which is natural gas. We've already run out of crude
oil, now pretty soon natural gas, and then pretty soon after
that, who knows? But we've got 15 big power plants in a row
waiting there, where's my natural gas, right, 15, I think, or
13, up almost 1,000 kilowatts each. Not a single one plans to
use coal, geothermal, nothing, all natural gas.
Well, to me, we have a little bit of a role up here when
we're in the Senate for a while, we're only here a few years.
But I tell you, I'm going to continue to make the point and try
to make the proposition wherever I can that the United States
must get on with this, and frankly I wouldn't be at all adverse
right now, as late as it is, to pick a site for interim storage
and do it. You know, Senator, we've come that close.
Senator Craig. Oh, yes.
Senator Domenici. If we didn't have the President we had at
that point, we would already be building interim storage some
place and it wouldn't have been the least bit dangerous to
anybody except those who want to run around and claim that the
world's dying because there's radioactivity coming out of spent
fuel. So obviously you can't help but get my lecture.
Senator Craig. Well, Mr. Chairman, for those of us who
worry about a variety of issues when it comes to energy, I so
totally agree with you that we've not only made some missteps
and some poor judgement over time because of the political
pressures involved, but we've been unwilling to lead.
The reason I was late coming here, as I was sitting down
with the new Minister for Energy from Canada. Canada loves us
at the moment and they'll continue to love us more because
we're not developing energy and they are and they're anxious to
send it south. And I'm glad they're our northern neighbors,
because if we cannot rely on ourselves, thank goodness we've
got them to rely on.
But the consequence of doing that is that the $35 billion
that flows north today will be $40, then $50, then $60, then
$80, then $100 billion a year and more, and that's not good
business that some of that can't stay here. That'll be our
companies north of the border working with Canadians and
Canadian companies.
CLIMATE CHANGE
But lastly, I found it fascinating, I was in Milan this
winter for the climate change conference. The world has
significantly changed since I was in Belgium a few years ago
where I was almost--put it this way--a riot almost occurred, we
almost were succumbed by eggs and pies in the face and all of
that. Today the world recognizes a folly so defined. The
Minister of Energy for Italy, now that Italy has ratified the
Kyoto Protocol, suggests that they can't meet it. In fact,
their gases today, emissions, are a factor of 5, 4 or 5 percent
higher than they were at the time. You cannot grow today in the
world using hydrocarbons without greater emissions and nobody
wants to die, economically speaking.
I met with the Minister of Environment for Japan. Japan was
at 6 percent above 1999 gas emissions at the time they signed
it. They are now 13 percent and she opined as to how they could
not meet, and they've even become an aggressive nuclear reactor
developer.
So it is significant out there that politics sometimes
mislead us dramatically, but the reality is that those
emissions levels cannot be met, because we're driving the world
toward greater use of hydrocarbon, and unless we advance the
technologies of their utilization, we don't meet anywhere near
those standards unless we just turn our economy off.
Lastly, we met the 1999 standards about 6 months ago, 8
months ago in this country, and the reason we did was because
we were in a recession and we reduced our employment by 2.5,
almost 3 million jobs, and we met the standard or were right at
it. That's the bad news, so you see they can be met, and for
those of us who went to the floor and spoke of those realities,
guess what? We were right. I don't like to be right on those
kinds of issues, but we were.
Now, the good news is that we come back--as we come back
online, and we are, our unit of utilization of hydrocarbons is
less per unit of production. Our emissions are less per unit of
production coming back online because the technologies we are
applying are newer. We're not using less hydrocarbon, we're
using it differently, and those of us who have advocated
technology and the application of technology over the years
again are right as it relates to economic growth development
and jobs.
And the combination of the two, and that's what the
chairman has always driven toward, the development of
hydrocarbons and the combination of nuclear energy, is the
right combination. So we're not going to give up on this fight.
I hope the chairman is right that the Minority Leader will
support us in the policy you've developed. Our new hurdle will
be the House again and we'll work closely over there to see if
we can't get something accomplished this year, but thank you
for your leadership, Mr. Chairman. It's greatly appreciated.
ADDITIONAL COMMITTEE QUESTIONS
Senator Domenici. Thank you very much, Senator. I just want
to say, what one should do as you listened to all statements
just made by the good Senator from Idaho, we probably ought to
conclude our remarks by saying we speak of nuclear because it
has not contributed any of the pollutants we're worried about,
zero. So it's not like we were for it because we did it once
and it's our baby. It's because the pollutants that we're
worried about and the pollutants that are going to ruin China
come from coal, come from those kinds of products which they're
going to all have to produce because everybody's scared of
nuclear. Nuclear produces none excepting fear and trauma from
those who are scared and question what we do with the waste.
[The following questions were not asked at the hearing, but
were submitted to the Department for response subsequent to the
hearing:]
Questions Submitted by Senator Pete V. Domenici
TWENTY YEAR FACILITY PLAN
Question. Given the strong support demonstrated by the Secretary
for your 20 year facility plan can you help me understand how this
budget supports these new priorities?
Answer. The 20-year facility plan is not a budget document and
reflects a most aggressive and optimistic view of future funding for
the Office of Science. Affordability of these facilities will depend
upon many factors in the future, and the list of facilities may change
as science priorities evolve and mature. In the fiscal year 2005
request, funding is provided for the top 5 facility priorities in the
plan as follows: ITER $7,000,000; Ultrascale Scientific Computing
capability $38,212,000; Joint Dark Energy mission $7,580,000; Linac
Coherent Light Source $54,075,000; and Protein Production and Tags
$5,000,000. We consider the above facilities to be near-term priorities
for the next decade.
INTERNATIONAL THERMONUCLEAR EXPERIMENTAL REACTOR (ITER)
Question. Can you explain why the Department purposefully ignored
congressional direction in this regard?
Answer. We believe the Department has not ignored Congressional
direction because the fiscal year 2005 budget request does not reduce
the overall level of domestic fusion research to any significant extent
as a result of ITER preparations. Where appropriate, domestic fusion
experimental, theoretical and enabling technology research is
reoriented more toward the needs of ITER. This research is performed by
existing fusion scientists and engineers. Only a very small amount, on
the order of $1 million of the ITER preparations request of $38
million, is for industrial preparations at this time. This
reorientation of fusion research has resulted in some shifts in
priorities, such as reducing facility operating time and focusing
technology more on the near-term, but overall the domestic fusion
research is not reduced to any significant extent.
Question. Can you please update the subcommittee on the ongoing
negotiations to pick a location for the project?
Answer. The ongoing negotiations are centered on the two host
candidates, Japan and EU. These two governments are communicating with
each other and trying to find a solution. On the periphery, all of the
negotiating parties are still discussing various technical aspects of
the two candidate sites; however, this is not likely to be decisive as
both sites are considered to be fully acceptable.
Question. What does the funding curve look like for this large
international project?
Answer. Assuming the site negotiations are successful and the ITER
International Agreement is completed, fiscal year 2006 would be the
earliest time to start the ITER construction project. According to a
preliminary cost and schedule estimate--which has yet to be validated
according to the project management guidelines for capital assets set
out in DOE Order 413.3 and OMB Circular A-11--the profile of the U.S.
funding share would begin in fiscal year 2006, peak around fiscal year
2010 at about $190 million, and end in fiscal year 2013.
Question. How much funding is the United States expected to provide
on an annual basis going forward and how does that compare with our
international partners on this project?
Answer. The U.S. contributions to the project, mainly in the form
of hardware, but also including some personnel to work on the project
and some cash for common expenses, would be about 10 percent of that
required for the total project. That is essentially the same as all of
the non-host partners.
WHO CONTROLS THE HYDROGEN INITIATIVE?
Question. Who is ultimately responsible for the overall hydrogen
initiative, and what controls will be implemented to ensure the
taxpayers are getting best deal for the research dollars?
Answer. Within the Department of Energy, the Offices of Energy
Efficiency and Renewable Energy (EE), Fossil Energy (FE), Nuclear
Energy, Science and Technology (NE), and Science (SC) participate in
the hydrogen initiative. As stated in the DOE Hydrogen Posture Plan,
the Office of Energy Efficiency and Renewable Energy leads the effort
and is responsible and accountable for DOE's success or failure in
carrying out the Plan.
The Hydrogen Posture Plan includes performance-based milestones
that will be used to track progress of the hydrogen initiative. Based
on a recommendation by the National Academies, the Hydrogen, Fuel
Cells, and Infrastructure Technologies Program is establishing an
independent systems-analysis activity to help prioritize research,
evaluate program risks, and ensure that results meet requirements. The
Program will undergo periodic peer reviews of its plans and research
such as the one just recently performed by the National Academies.
The approach of the Department's four offices working together has
been to:
--Update internal planning documents annually to support the
administration's request for the President's Hydrogen
Initiative;
--Ensure EE, FE, NE and SC budget submissions to OMB support the DOE
Posture Plan and that there are no gaps or redundancies in
requested budgets;
--Plan solicitations and evaluate proposals; and
--Evaluate funded research.
No conflicts have arisen between the four DOE offices participating
in the hydrogen initiative thus far. Should conflicts arise in the
future, the Under Secretary for Energy, Science and the Environment
will ensure program and budget integration, as all of the Assistant
Secretaries and Directors of the four offices involved in the effort at
DOE report to the Under Secretary.
The Department also works closely with the Department of
Transportation, which currently has a small role, but whose
participation will grow more important as hydrogen technologies advance
toward commercialization.
R&D VS. FUNDING FOR DEMONSTRATION PROJECTS
Question. How is DOE deciding on and managing the balance between
funding for the necessary research for the required breakthroughs and
funding for demonstration projects using current technology platforms?
Answer. A continuum of research and development, from basic science
to demonstration, will be needed to develop a long-term hydrogen
economy.
Basic science will be performed in areas that are only conceptual
but have the potential for making major impacts. An example would be
photoelectrochemical production of hydrogen (direct solar conversion
without the intermediate step of electrolysis). Although conversion
efficiencies are orders of magnitude too low, the potential benefit is
great because of the large renewable resource available. This research
may take decades to come to fruition.
Exploratory and applied research will be done in areas where there
is proven performance but a large gap still exists between current
technology and what is needed to meet consumer requirements. An example
is hydrogen storage, where approaches such as metal hydrides are
proven, but we still need improvement factors of two to three times
current values to meet our requirements. As performance improvements
are made, cost targets become more important.
Demonstrations are appropriate when technology has matured to the
point that system integration issues must be addressed and performance
under real-world operating conditions must be evaluated. Further
research or significant progress may still be needed to reduce cost,
but system performance must be validated. Demonstrations may uncover
operating issues not previously considered, such as performance in
certain climates, and will guide and refocus future R&D efforts.
The National Academies' hydrogen report recommended that the
Department shift away from some development areas towards more
exploratory work. Exploratory research involves the application of
novel ideas and new approaches to ``established'' research topics, and
is likely to catalyze more rapid advances than basic research and more
innovative advances than applied research. The Department is doing this
through the Hydrogen Storage Grand Challenge, which includes the
establishment of three ``Centers of Excellence'' led by national
laboratories along with multiple university and industry partners. This
could be a model for ``expert'' centers focusing on other priority
research areas.
CENTERS FOR EXCELLENCE IN HYDROGEN
Question. How do you plan to fund your soon-to-be announced centers
for excellence in hydrogen storage, and future R&D efforts?
Answer. Funding for the Hydrogen Storage Grand Challenge
solicitation was requested in the fiscal year 2004 budget. However, due
to the number of and funding associated with Congressionally-directed
projects in the fiscal year 2004 hydrogen account, no funds are
available to start the Centers of Excellence and other projects
selected under the Grand Challenge this year. These efforts will be
initiated in fiscal year 2005 with fiscal year 2005 funds, subject to
the availability of funds.
STORAGE CENTERS
Question. Will you start any activity this year for these storage
centers to begin the important groundwork?
Answer. No. Due to the number of and funding associated with
Congressionally-directed projects in the fiscal year 2004 hydrogen
account, no funds are available to start research in the Centers of
Excellence and other projects selected under the Grand Challenge this
year.
OMB FUNDING REQUEST
Question. Your [EE] budget has an unusually large funding increase
for Program Funding within the Renewable section. Funding increased by
67 percent from $12.3 million in fiscal year 2004 to $20.7 million. How
did you get this funding request by OMB and how do you intend to use
the funding?
Answer. Of the proposed $8.4 million increase, $3 million is for a
new activity, the Climate Change Technology Program (CCTP). These funds
will generally be used for support services in developing a CCTP
strategic plan and conducting analyses.
Excluding this new activity, the increase we request is $5.4
million, or 44 percent. Much of this proposed increase is in direct
response to the committee's exhortations that EERE emphasize better
stewardship through stronger project management and increased
competition in contracting.
We plan to spend $3.6 million to hire additional Federal staff in
order to move away from the practice of using the laboratories to
oversee their own contracts, cooperative agreements, and grants. We
believe these inherently Federal activities should be performed by
Federal employees. Our fiscal year 2005 budget request includes an
increase of 22 FTE over the budgeted level of 84 FTE for fiscal year
2004, mostly for project management staff at the Golden Field Office.
It is important to note that hiring Federal staff instead of using
laboratory personnel for these 22 FTEs will allow more of EERE's
funding to be devoted to actual R&D activities. In fact, we calculate
that filling these 22 FTE positions using laboratory personnel would
cost roughly $5.8 million, compared to $3.6 million for Federal staff.
This action will therefore ``save'' an estimated $2.2 million in
program funding, which is captured in the Program Direction budget
line. We do not show the ``savings'' by program in the budget
justification materials because program budgets generally do not
include a line item corresponding to overhead costs for laboratory
staff to manage contracts. These costs are built into each budgetary
line as appropriate. The entire amount of the ``savings'' within each
program is redirected from formerly unstated program overhead costs to
actual program activities that contribute to program goals.
Of the remaining portion of the increase ($1.8 million), $1.2
million will be used to sustain the current on-board staff level of 84
FTE. The remaining $0.6 million will be used mostly for support
services, information technology investments, consolidation of legacy
business practices and systems, and management services for
implementing our strategic management system.
NUCLEAR ENERGY BUDGET
Question. Based on this anemic budget should the committee assume
that the nuclear energy is no longer a priority for this
administration?
Answer. The President's budget request increases the funding for
the Department's nuclear energy program by 1.2 percent to about $410
million for fiscal year 2005. This budget advances the policy direction
for the Nation's energy security established by the National Energy
Policy and allows the Department's priority efforts in programs such as
Generation IV and the Nuclear Hydrogen Initiative to proceed
vigorously. The Department's request more than doubles the fiscal year
2004 request for each of these programs, demonstrating the
administration's commitment to dealing with not just the short-term
issues of the energy market, but longer-term, strategic issues.
In addition, the President's fiscal year 2005 budget also lays the
groundwork for one very important element of the administration's
effort to expand our future use of nuclear energy with the creation of
a new national laboratory, the Idaho National Laboratory. This new
laboratory's central mission is to pursue research, development,
demonstration and education associated with nuclear energy.
Two of the Department's nuclear R&D programs have ended with the
fiscal year 2005 budget.
--We request no funding for the Nuclear Energy Research Initiative
(NERI) for fiscal year 2005, but the activity will continue as
an annual competitive research grants program for university
researchers that is tied to mainline programs such as
Generation IV and Nuclear Hydrogen Initiative. We believe that,
to be relevant, the NERI program must be tied more closely to
the Department's mainline nuclear energy programs. We also
believe that NERI's greatest benefit is in its support for the
Nation's university nuclear technology programs. The
restructuring of NERI addresses both of these important
concerns.
--The Nuclear Energy Plant Optimization program has accomplished the
most important mission it was designed for: addressing many of
the aging material and generation optimization issued which
have been identified as the key long-term issues facing current
operating plants. We are confident that industry will continue
supporting the research objectives highlighted by NEPO because
these objectives are consistent with industry's interest in the
long-term, reliable, and economic operation of existing nuclear
power plants.
We are requesting less for two other programs:
--The Advanced Fuel Cycle Initiative requires less funding in fiscal
year 2005 because the Department has decided against the rapid
development of commercial-scale UREX+ technology. Instead, we
are focusing on longer-term, higher-payoff research at
laboratory scale in next-generation fuel cycle technologies
including advanced aqueous and pyroprocessing spent fuel
treatment, advanced transmutation and Generation IV fuels, and
detailed systems analysis and modeling.
--The Department has requested only minimal funding for the Nuclear
Power 2010 program in fiscal year 2005 to enable the
continuation of ongoing licensing demonstration and related
analysis projects. Future requirements for the program will be
reviewed as Congress completes work on comprehensive energy
legislation and the Department assess the responses and
requirements associated with its recent solicitation related to
New Plant Licensing Demonstration Projects.
nuclear energy technologies/nuclear power 2010
Question. Can you please update me on the status of the Nuclear
Power 2010 program and explain to me how this money will be used and
how it will benefit the companies participating in this program?
Answer. The Nuclear Power 2010 program is a joint government/
industry cost-shared effort to identify sites for new nuclear power
plants, develop advanced nuclear plant technologies, evaluate the
business case for building new nuclear power plants, and demonstrate
untested regulatory processes. These efforts are designed to pave the
way for an industry decision by the end of 2005 to order a new nuclear
power plant which will be built and begin commercial operation early in
the next decade.
As an initial step in the demonstration of the untested regulatory
processes, the Department has established cost-shared cooperative
projects with three nuclear power generating companies to demonstrate
the Nuclear Regulatory Commission (NRC) Early Site Permit (ESP)
licensing process. Under these cooperative projects, each of the three
power generation companies (Dominion, Exelon, and Entergy) prepared and
submitted, in the fall of 2003, an ESP application to the NRC. The
program will support the analysis and regulatory interactions required
to allow the NRC to issue Early Site Permits to all three sites during
fiscal year 2006.
In fiscal year 2003, the Department initiated a cost-shared project
with an additional power company, Tennessee Valley Authority (TVA), to
evaluate the environmental, seismic and geo-technical suitability of a
commercial nuclear plant site in Alabama. This project is expected to
be completed in October 2004 and will provide important input for a TVA
decision to proceed with ordering and building a new nuclear power
plant.
The remaining critical untested regulatory process is the combined
Construction and Operating License (COL) process. The COL process is a
``one-step licensing'' process which results in resolution of all
health and safety issues associated with construction and operation of
a new nuclear power plant. The importance of this new ``one-step
licensing'' process is that all regulatory and licensing issues are
resolved before a power company makes a major investment and begins
construction of the plant. In fiscal year 2003, the Department
initiated a cost-shared project with industry to develop generic
guidance for the COL application preparation and to resolve generic COL
regulatory process issues. This project will be completed in fiscal
year 2005.
In November 2003, the Department solicited power company proposals
to initiate New Nuclear Plant Licensing Demonstration Projects. Under
these cost-shared projects, power companies will conduct the necessary
activities to select an advanced reactor technology and prepare a
license application to build and operate a new nuclear power plant.
These projects will also provide for NRC design certification of a
standardized nuclear power plant design. The Department expects to
receive two or three and proposals from industry teams.
This work and a variety of smaller studies in cooperation with a
range of industry partners will advance the public/private effort aimed
at the deployment of new nuclear power plants around the beginning of
the next decade.
Question. Do you have an estimate as to how much time the DOE
proposed contribution of $10 million will save companies in this
licensing process?
Answer. The Nuclear Power 2010 cooperative licensing demonstration
projects with the power generation companies has made it possible for
the companies to seek Early Site Permits (ESPs) and begin planning for
a combined Construction and Operating License (COL). Successful
demonstration of the licensing processes will encourage future
decisions to build new nuclear plants by elimination of industry
concerns over regulatory risk and reduction in the overall license
process duration. It is estimated an overall reduction of at least 1
year in the ESP licensing application and approval process can be
realized from the current projection of 4\1/4\ years. Similar time
savings is expected to be realized in the COL licensing process. The
savings for COL applicants are in addition to more than 2 years in
savings projected to be realized as a result of having certified
standardized Generation III+ designs available.
Perhaps more important than the funding provided to support this
work is the Department's partnership with the industry in exploring the
development of new nuclear power plant projects. Without such
aggressive government support, which flows from the National Energy
Policy and public encouragement provided by senior administration
officials, it is possible that industry would be more hesitant to
pursue these activities.
Question. Do you have an estimate as to what you believe the
companies will expend over the next year?
Answer. As part of the Nuclear Power 2010 program cost-shared
projects, power companies are expected to invest an amount at least
equal to DOE spending. For ongoing activities in fiscal year 2005,
industry is expected to spend at least $4.5 million on the Early Site
Permit Demonstration projects and an additional $1.8 million for
generic activities and guidance development for COL applications.
The Department expects to have a firm estimate of industry planned
expenditures for fiscal year 2005 and the overall requirement for the
licensing and development of Generation III+ designs after assessing
the industry responses to its recent solicitation for New Nuclear Plant
Licensing Demonstration projects. This solicitation was issued in
November 2003 and we expect to receive responses from industry in
spring 2004. The most recent industry estimates provided to the
Department project an industry cost-share of approximately $60 million
to $80 million per year through 2010 to obtain a combined Construction
and Operating License and complete associated first of a kind
engineering activities.
IDAHO NATIONAL LABORATORY
Question. Following the establishment of the Idaho National
Laboratory, what role do you see for the other laboratories that
currently contribute to the nuclear energy program?
Answer. We anticipate that several of the Department's national
laboratories will continue to play key roles in implementing the Office
of Nuclear Energy Science and Technology's research and development
agenda. While the Idaho National Laboratory will develop a prominent
and central role in the nuclear energy technology program, the
expertise and capabilities of several other labs--chiefly Oak Ridge
National Laboratory and Los Alamos National Laboratory--will be
essential in the success of our research efforts.
Question. Do you have a transition plan and budget estimate
prepared that will guarantee the success of the nuclear research into
the future and continue to draw on the experience of the other national
laboratories?
Answer. The execution of our nuclear energy R&D programs is guided
by multi-year program plans that have been jointly developed by our
Federal and national laboratory personnel. These program plans identify
R&D activities will evaluate undertaking over the next 10 years and
include estimates of the out-year budgets necessary to carry out those
efforts. The continued participation of the national laboratories in
executing the multi-year program plans is essential to the overall
success of the programs. As an example, the attached chart displays the
organization of the Department's Generation IV Nuclear Energy Systems
and Advanced Fuel Cycle Initiative programs--note that this
organization highlights important roles for several national
laboratories. We expect that this approach will endure as these
programs progress.
The attached chart illustrates the program integration for the
Generation IV and Advanced Fuel Cycle Initiatives.
Question. Can you explain what would happen if full funding of $48
million isn't provided for costs associated with the restructuring of
the Idaho National Lab restructuring plan?
Answer. The $43.8 million identified in the President's budget
request for Laboratory Transition and Restructuring will assure that
all current INEEL personnel remain employed through the contract
transition period, thus enabling the new contractors to hire the staff
that best fit their very different requirements. Without this funding,
we would not be in a position to facilitate an effective transition of
the laboratory staff.
Question. Would funding shortfalls delay the Idaho upgrades or will
this put the entire nuclear energy R&D effort at risk with further
delays?
Answer. Shortfalls in the restructuring request could require the
Department to explore taking funds taken from the infrastructure or
other programs at the site including the nuclear energy R&D efforts.
Alternatively personnel could be terminated before the new contractors
have an adequate opportunity to review their qualifications.
Question. The Budget Request includes $46 million for ``one-time
costs associated with restructuring the Idaho lab.'' Since EM was the
previous landlord for this Lab, why aren't these one-time costs being
paid by EM, instead of NE?
Answer. Most of the workers who may not find immediate employment
with either new contractor will be support personnel who perform
landlord type functions that benefit the entire site. As NE is now the
site landlord, it falls to NE to fund this work since that office
controls the affected functions.
Question. The Idaho Lab will have a difficult challenge
establishing its research programs. In the past, the Idaho Lab could
tax EM programs for LDRD to fund internal research. Now those EM funds
are being swept into another contract. I am hearing that future EM
funds can not be taxed to support the new INL. Is this correct and can
you explain that logic?
Answer. The Idaho Cleanup Contract is designed to only fund those
activities that directly support accelerated cleanup. As the cleanup
work is not expected to continue indefinitely, it is not appropriate
for the lab to rely on the cleanup contractor to fund ongoing research
activities.
Question. Aren't you worried that the new INL will have too small a
base of funding to derive any meaningful LDRD funding?
Answer. We believe that there will be adequate the funding
available for LDRD projects in the future as the INL becomes a world
class research center for nuclear technology development.
UNIVERSITY PROGRAMS
Question. How can progress in university programs be maintained
when the overall pot of R&D funds, for universities and labs is
slashed?
Answer. Over the past several years, the Department has had a
substantial positive impact on the Nation's university nuclear
engineering programs as evidenced by increasing student enrollments,
re-establishing stronger academic programs, improving the performance
and use of their research and training reactors, and attracting
minorities to the nuclear engineering discipline. The University
Programs budget for fiscal year 2005 is essentially equal to our fiscal
year 2004 appropriation when it is considered without the one-time
funding of $2.5 million for spent fuel transportation. In fiscal year
2005 the Office of Civilian Radioactive Waste Management will assume
responsibility for university reactor spent fuel transportation and,
therefore, the University Programs budget reflects the transfer of this
activity. Funding for faculty and student research at our Nation's
nuclear universities remains constant for fiscal year 2005.
In fiscal year 2005, the Department will integrate researchers from
the Nation's universities into the Department's mainline nuclear energy
R&D activities. The Department will use competitive, peer-reviewed
solicitations focused on the university community to select the best
ideas for meeting the technology challenges of our various research
efforts. Funding for this university-based research will be derived
from the Department's primary nuclear energy R&D programs, including
the Generation IV Nuclear Energy Systems Initiative, the Advanced Fuel
Cycle Initiative, and the Nuclear Hydrogen Initiative. Overall, the
proposed funding for university R&D is $1.8 million higher in fiscal
year 2005 than fiscal year 2004.
Question. I was pleased that additional regional consortia, now six
in total, were created to enable students to have access to important
research reactors. But how does addition of new consortia match with
proposed 10 percent cut in the university program budgets?
Answer. The six consortia, under the Innovations in Nuclear
Infrastructure and Education (INIE) program, are an unqualified
success. Funding for this important and highly successful program is
essentially equal to the level of fiscal year 2004, which supported the
increase from four to six consortia.
LOUISIANA ENERGY SERVICES--ENRICHMENT
Question. In written response to questions in last year's review of
the fiscal year 2004 budget, you stated:
``The Administration places a high priority on ensuring nuclear
nonproliferation safeguards are in place and that access to sensitive
technology is controlled. The information available to the Department
indicates that URENCO has acted responsibly with regard to the control
of sensitive technology and the employment of non-proliferation
safeguards.
``The Department believes that LES's plans for the deployment of
centrifuge technology in the United States are of considerable national
benefit. Deployment of an LES plant will help assure the important
energy security objective of maintaining a reliable and economical U.S.
uranium enrichment industry.
``The Department believes there is sufficient domestic demand to
support multiple commercial uranium enrichment plant operators in the
United States and that competition is important to maintain a viable,
competitive domestic uranium enrichment industry for the foreseeable
future.''
Does this response from the Department still stand?
Answer. Yes, we understand that URENCO continues to follow
nonproliferation safeguards and controls on access to sensitive
technology in accordance to agreements with the U.S. Government
regarding to LES' deployment of centrifuge technology.
The Department also continues to believe there is sufficient
domestic demand to support multiple commercial uranium enrichment plant
operators in the United States and that competition is important to
maintain a viable, competitive domestic uranium enrichment industry for
the foreseeable future. Currently, domestic uranium enrichment capacity
is less than half of U.S. nuclear fuel requirements. Over the next two
decades, U.S. demand for electricity is forecasted to grow by 50
percent. Without the deployment of reliable and economical advanced
technology and assuming nuclear power maintains its current share of
demand, the share of U.S. nuclear fuel requirements met by foreign
suppliers could rise to 80 percent in 20 years.
RADIOPHARMACEUTICALS
Question. Is the Department's policy of requiring that researchers,
who require new radiopharmaceuticals, pay the full production costs
coordinated with the National Institutes of Health such that vital
research in improved applications of radiopharmaceuticals is continuing
at a rapid pace?
Answer. The Department's program requires that researchers pay for
isotope development and direct production costs. Isotope production
costs are accrued on a batch basis. The Department must obtain funding
for the direct production cost for each batch before production can
commence. Research customers have not been able to purchase the
required isotopes in the manner currently required by the Department.
Recognizing this and the impact this approach could have on medical
research, the Department has engaged with the NIH. We are working with
that agency to develop an approach to address this issue and to ensure
that vital isotope-based medical research is not impeded.
Question. Are the two agencies, DOE and NIH in agreement that this
is the appropriate place for these costs to be borne?
Answer. There have been positive discussions at the staff level.
The Department continues to seek an agreement with the NIH that will
lead to a resolution of this issue.
BARTER ARRANGEMENTS
Question. As part of DOE's fiscal year 2005 budget request for its
Nuclear Energy Program, DOE is proposing to employ a ``barter
arrangement'' to support the continuation of the technetium-99
activities currently being undertaken by USEC at the Portsmouth Site.
Please describe the nature of the ``barter arrangement'' that DOE is
contemplating?
Answer. At the end of fiscal year 2004, substantial quantities of
both USEC and the Department's uranium inventories will remain
contaminated with technetium-99 above the commercial standard for use
as feed in a uranium enrichment process. Currently, processing the
uranium at Portsmouth is the only economical means to remove enough
technetium-99 contamination to allow it to be used as feed to the
Paducah Gaseous Diffusion Plant. Because the cost to continue the
technetium-99 removal activities is between one-third and one-half the
replacement or market value, both USEC and the Department may benefit
from the continuation of this program. A barter arrangement would help
achieve realization of the full economic value of the uranium.
Question. Has DOE completed its evaluation of the need for
additional legal authority to carry out the proposed ``barter
arrangement?'' If so, please provide a copy of the evaluation. If not,
when will this evaluation be completed? When it is completed, please
provide a copy.
Answer. The Department has performed an informal evaluation and
concluded that an additional authorization is not needed. Under section
3(d) of the Atomic Energy Act (AEA), the Department is to effectuate
programs that encourage the ``widespread participation in development
and utilization of atomic energy for peaceful purposes.'' All of the
material, with the exception of Freon, that is currently being
contemplated for barter is ``source material'' as defined by section
11(z) of the Atomic Energy Act (AEA). Under section 63 of the AEA the
Department is authorized to distribute source material, and under
section 66 of the AEA the Department is ``authorized and directed . . .
to effectuate the provisions of this Act'' to purchase or otherwise
acquire supplies of source material. In addition, under section 161(g)
of the AEA the Department is authorized to acquire, sell, lease, grant
and dispose of real and personal property that the Department has
acquired in connection with carrying out functions under the AEA or
property that will be used to carry out objectives under the AEA.
Pursuant to these existing authorities, the Department is authorized to
enter into any of the barter arrangements that are currently being
contemplated.
Question. What products or services is DOE contemplating using as
``barter'' under the proposed arrangement? Is DOE considering the
option of transferring uranium from DOE's stockpile to USEC as part of
a ``barter arrangement?''
Answer. The products or services being considered for a possible
barter arrangement are excess assets related to the Department's former
uranium enrichment program, or services that are incidental to
activities necessary to the final disposition of that programs legacy.
The selection of materials is subject to negotiation and agreement by
the other party.
Question. Section 3112 of the 1996 USEC Privatization Act includes
a provision that explicitly requires DOE to undertake an evaluation of
the impact of any sales or transfers of natural or low-enriched uranium
on, among other things, the domestic uranium mining, conversion, and
enrichment industry. In the event that any ``barter arrangement'' were
established employing uranium from DOE's stockpile, would DOE agree
that the provision in section 3112(d) would apply to any such transfer?
Does DOE consider a ``sale or transfer'' to include a ``barter''? If
so, please provide the analysis to support this conclusion.
Answer. The Department is not currently considering proposing to
barter material that is subject to subsection 3112(d). However, if the
Department were to use material subject to 3112(d), it would comply
with the provisions of 3112(d). ``Sale or Transfer'' is a broad term
which encompasses arrangements in addition to normal commercial sales
such as barter transfer.
The Secretary is sensitive to his responsibility for the domestic
uranium industry as detailed in the USEC Privatization Act and
subsection 1014 of the Energy Policy Act of 1992, and has carefully
considered the proposed activities. In addition to restoring the
economic value to contaminated uranium inventory, any barter proposal
would sustain 154 workers employed during fiscal year 2005 in the
domestic uranium industry.
Question. Section 3112(d) also requires the recipient of any such
uranium sales or transfers to pay the ``fair market value of the
material.'' In a barter arrangement, how would DOE address this ``fair
market value'' requirement?
Answer. The Department is not contemplating a barter of material
that is subject to subsection 3112(d). However, the barter would be an
arms' length transaction for value that would take into consideration
the ability to monetize the asset in a fashion adequate to meet the
financial needs necessary to provide the services at the Portsmouth
facility.
CERAMIC ION TRANSPORT MEMBRANES PROJECT
Question. For the past 7 years the DOE-Office of Fossil Energy (FE)
and Office of Energy Efficiency and Renewable Energy (EERE) have
supported a development project that uses ceramic Ion Transport
Membranes (ITM) to produce hydrogen from natural gas. Selected through
a competitive solicitation in 1997, the ITM Syngas project has been co-
funded since that time by DOE-FE (75 percent), and DOE-EERE (25
percent). However the fiscal year 2004 funding for the project was
reduced by EERE from $1.3 million to $200 thousand. The ITM Syngas
project is currently in Phase 2 with the objective of operating a Sub-
scale Engineering Prototype (SEP) that will demonstrate full conversion
of natural gas to synthesis gas. Achieving this objective is critical
to gaining the technical understanding to proceed to the project's next
phase, a pre-commercial demonstration of the ITM Syngas technology.
From the beginning of the project, EERE had committed to supporting the
project through the end of Phase 2, and financial participation through
completion of the SEP demonstration is necessary to maintain the
project on schedule. After demonstrating full product conversion in the
ITM Syngas process, smaller units could be developed that would be
amenable to distributed hydrogen production.
In view of this critical stage of the ITM Syngas project, will DOE-
EERE revise its fiscal year 2005 budget to provide $1.3 million for the
project?
Answer. The ITM Syngas project was one of several hydrogen
production projects for which EERE funding was reduced in fiscal year
2004 due to a shortfall caused by the large number of Congressionally-
directed projects. The Department plans to meet its total obligations
identified in the ITM cooperative agreement, subject to Congressional
appropriations, the extent of fiscal year 2005 Congressionally-directed
projects, and the results of the annual merit review that helps to
guide our prioritization of research projects. EERE will determine its
fiscal year 2005 contribution to the project following the completion
of the fiscal year 2005 appropriation process.
______
Questions Submitted by Senator Thad Cochran
BIOMASS R&D AND NATIONAL LABORATORIES
Question. Mr. Garman, you mention in your written testimony that
the Department is interested in working with industry and the National
Laboratories to reach your goals of a large-scale biorefinery and
advanced technologies to transform the Nation's domestic biomass
resources into high value power. I believe that our National Labs
provide a valuable service and conduct important research. What are you
doing to ensure that this research and development is not overly
entangled with the industries which fund such activities?
Answer. Our National Bioenergy Center facilitates the coordination
of biomass research and development across the National Laboratories.
The Center is focused on enabling long-term research needed to convert
a wide variety of domestic biomass resources to fuels, chemicals, and
heat and power in a sustainable manner. Through partnerships with
industry, the Department fosters the nearer term research and
development that leverages the National Laboratories' foundational,
enabling work. The public/private partnerships advance biomass
conversion processes and integrate them into commercial systems and
facilities for testing and performance validation. The National
Laboratories are involved with industry's research and development
through Cooperative Research and Development Agreements (CRADAs). These
CRADAs are carefully constructed to avoid duplicative efforts and to
ensure that our participation is an appropriate Federal role.
BIOMASS R&D AND UNIVERSITIES
Question. What role do you see our Nation's universities playing in
this ongoing research and development?
Answer. Universities play an important role in the Biomass Program.
One example is the Biomass Refining Consortium for Applied Fundamentals
and Innovation (CAFI). With support from the National Laboratories,
Federal Government, and industry, this group of universities focuses on
various possible pretreatment technologies to identify options that
enable the integrated industrial biorefinery. In addition, universities
are collaborating with the National Laboratories on a variety of
research projects as listed below:
--Colorado School of Mines.--Impact of Water Structure Modifying
Agents and Cellulase Mutations on Cellulase-Cellulose
Interactions,
--University of Arkansas.--X-Ray Crystallographic Studies of
Cellulases,
--Purdue University.--Building A Bridge To The Corn Ethanol Industry
Follow-On Project--Phase II,
--University of Colorado.--Boulder, Mechanistic Model Development for
Biomass Thermochemical Conversion Process,
--Cornell University.--Molecular Modeling of the Interaction of
Cellulose with Cellulases and Catalysts,
--Cornell University.--Improving T. fusca Cellulases by Protein
Engineering,
--Dartmouth University.--The Role of Biomass in America's Energy
Future,
--University of Pittsburgh.--Biorefinery Optimization Software.
Universities are also funded in fiscal year 2004 through the
following congressionally-directed projects: Iowa State University,
Iowa State University Center for Catalysis, Purdue University & the
Midwest Consortium for Sustainable Biobased Products and Bioenergy,
University of Louisville, Louisiana State University Agriculture
Center, Mississippi State, and the University of North Dakota. While we
do not support continuation of Congressionally directed projects, we
expect that many universities would receive funds through a competitive
awards process.
The Biomass Program continues to fund multi-disciplinary programs
at universities to develop graduate programs that focus on biomass. The
approach is to foster collaboration among various departments including
business, science, and engineering. The Biomass Program also sponsors
research internships at the National Renewable Energy Laboratory
involving undergraduate and graduate students majoring in science and
engineering. These internships allow the students to gain hands-on
research experience under the guidance of prominent researchers.
______
Question Submitted by Senator Larry Craig
FUNDING A COMMERCIAL BIOMASS PLANT
Question. A biotechnology company is interested in building a
commercial bio-ethanol production facility in the State of Idaho. This
plant would use agricultural wastes--primarily wheat straw--as its
feedstock. Using an enzyme-based process, the plant would convert the
carbohydrates from the wheat straw into hydrocarbons for ethanol. The
construction of this plant would demonstrate the long-term viability of
using agricultural products to provide both energy and chemicals that
have thus far been derived from petroleum. The success of this project
will create new jobs in the agriculture, energy, technology, research,
and construction sectors in Idaho and elsewhere. It will contribute to
accomplishing the President's goal of reducing the greenhouse-gas
intensity of the economy because the CO2 emitted by burning
ethanol is roughly equal to the CO2 absorbed by growing the
wheat--meaning that burning ethanol created from this process would add
no net CO2 to the atmosphere. Completion of this facility
would also demonstrate a realistic way to begin reducing our Nation's
dependence on foreign oil.
This cutting-edge project would be eligible for the loan guarantee
program described in the energy bill conference report. Because that
bill has not been sent to the President by the Congress, and because
this project can serve multiple national interests simultaneously, I
seek your assistance in identifying existing authorities that would
ensure the rapid construction of this facility.
Please identify any existing programs, funds or authorities that
could be used by this company to secure financing and commence
construction on this vitally important project.
Answer. The Department of Energy does not have any program funding
available to support this effort at this time. The Department of
Agriculture (USDA) conducts a loan guarantee program under Section 9006
of the Farm Bill that has funded small grain-based ethanol plants.
However, because the proposed plant is a first-of-a-kind facility with
a high degree of technical and financial risk, this project may not
receive funding under the USDA program. The Department is unaware of
any other Federal programs that would fund this project.
______
Questions Submitted by Senator Ted Stevens
ALASKA EXAMINATION OF GEOTHERMAL SITES
Question. In September 2003, Assistant Secretary David Garman and
Dr. Roy Mink traveled to Alaska to examine geothermal sites, determine
their viability for electricity production, and to assess ways in which
the Department of Energy can assist in developing this energy resource.
What steps has the Geothermal Technologies division and the Office of
Energy Efficiency and Renewable Energy taken towards this end?
Answer. The Geothermal Technologies Program has reached out to help
Alaska define its geothermal resource and to begin building a base for
development of that resource. A database of potential geothermal
resources has been developed that targets two areas in Alaska for
possible power plant developments (Akutan and Unalaska).
The Program is also providing assistance to private developers, one
working with the Native Corporation to establish a basis for
development of a power plant at Akutan and another developer who has an
interest in working with the Native Corporation for a potential power
plant at Dutch Harbor (Unalaska). We are also working with the Kotzebue
Electric Association to evaluate existing geothermal data and provide a
basis to evaluate potential use of geothermal thermal energy to protect
the town sewer system from freezing.
As a result of the September 2003 trip, the Geothermal Technologies
Program has included additional funding opportunities for Alaska. The
Geothermal Outreach funding opportunity announcement (State Energy
Program) closes on April 6, 2004. The Geothermal Resources Exploration
and Definition funding opportunity announcement will be released on
March 18, 2004, and the Power Plant Development funding opportunity
announcement will be released near the end of March 2004. These
announcements will provide up to $5 million of geothermal funding in
fiscal year 2004.
DOE also provided $100,000 to the Alaska Division of Energy to
support development of a working group to promote geothermal energy
awareness in Alaska.
ASSISTANCE TO ALASKA COMPANIES
Question. Given the extraordinarily high cost of energy in rural
Alaska, many utility companies are exploring the possibility of
harnessing wind energy to supply rural communities with electricity.
What assistance is the Office of Energy Efficiency and Renewable Energy
providing to these companies?
Answer. The Department of Energy supports wind power projects in
Alaska through several local and State organizations. There are ongoing
wind projects with Kotzebue Electric Association, the City of Unalaska,
and TDX Corporation (St. Paul Island) that are aimed at providing lower
cost energy alternatives to rural Alaskan communities. Through the
Department's Tribal Energy Program, renewable energy studies are
underway for Southeast Alaska, the Yukon-Kuskokwim Delta region, and
the Bristol Bay region. National Wind Technology Center personnel
provide expert technical support to these projects by supplying
anemometers, evaluating the wind resources, conducting wind workshops,
and sponsoring local representatives to attend technical workshops.
EVALUATION OF RENEWABLE ENERGY SOURCES ON PUBLIC LANDS
Question. In February 2003, the Department of Energy and the
Department of the Interior released a report evaluating renewable
energy resources on public lands. Alaska was excluded from this report.
Will the Department of Energy undertake a similar evaluation of
renewable energy resources on public lands in Alaska?
Answer. The Geothermal Technologies Program is working with the
United States Geological Survey on a limited geothermal resource
assessment for the western United States, including Alaska.
Comprehensive energy legislation pending in the Congress requires
thorough annual assessments of all renewable energy resources,
including solar, wind, biomass, ocean, geothermal, and hydroelectric,
in all 50 States.
TIDAL ENERGY PROJECTS COST IN ALASKA
Question. The use of tidal energy is currently being explored in
Alaska. As you know, the coast of Alaska has exceptional energy
producing potential. Tidal energy projects have high capital costs. Is
the Office of Energy Efficiency and Renewable Energy exploring
opportunities to harness tidal energy?
Answer. The Department is not currently funding research in tidal
energy. Since there are only two areas of the Nation with a significant
tidal flux (Cook Inlet, Alaska; Bay of Fundy, Maine) the application of
tidal energy is not considered widely applicable.
RENEWABLE ENERGY PROGRAM IN ALASKA
Question. Please describe in detail the Department of Energy's
(DOE) renewable energy program in Alaska.
Answer. Some of the activities DOE is funding in renewable energy
in Alaska are described below. All of these projects were
Congressionally directed. We strongly support competitive awards to
ensure that the Department's program goals are advanced and taxpayer
dollars are spent wisely.
Biomass
The Department is supporting an ethanol production facility with
Sealaska Corporation in Ketchikan that will utilize wood residues
produced from various forest industry operations in a process to
produce fuel grade ethanol. Regional Biomass Energy Program funds
support a biomass energy specialist at the State level who assists
developers with regulatory and utility issues, provides technical
assistance, and in some cases provide financial assistance. The
Regional Biomass Program also contributed to the Dutch Harbor Fish Oil
Demonstration Project which demonstrated blending fish oil with diesel
oil to power engine generator sets that provides electricity to the
town of Dutch Harbor.
Wind
DOE has been supporting wind power projects in Alaska for several
years through various local and State organizations. There are ongoing
wind projects with Kotzebue Electric Association, the City of Unalaska,
and TDX Corporation (St. Paul Island) that are aimed at providing lower
cost energy alternatives to rural Alaskan communities. National Wind
Technology Center personnel provide expert technical support by
supplying anemometers, evaluating the wind resources, conducting wind
workshops, and sponsoring local representatives to attend technical
workshops. The Department has also tested cold weather wind turbines to
mitigate performance problems in extreme-cold climates (e.g. icing on
blades and gear box freezing).
Geothermal
The Department assisted the Alaska Energy Authority in completing a
statewide assessment of geothermal resources. The assessment concluded
that geothermal resources near the community of Akutan have the
potential to displace a substantial portion of the 4.3 million gallons
of diesel per year used for generating power and heat in the community
and fish processing plant. The Department has also supported site
specific feasibility investigations. This past September, Assistant
Secretary Garman accompanied the Geothermal Program Manager to Alaska
to examine several geothermal sites to determine their viability for
electricity production. The Geothermal Technology Program is supporting
a geothermal working group to promote geothermal energy awareness in
Alaska. This group will be visiting Nevada on a trade mission to learn
about successes and procedures used by Nevadans to develop geothermal
energy.
Hydropower
The Department has supported a number of hydropower technology
development efforts in Alaska over the years. Currently, DOE is
supporting the Alaska Village Electric Corporation in a hydropower
feasibility study at Scammonbay, and a Power Creek hydro-electric
project in Anchorage.
State Energy Program
The State Energy Program provides base-level funding for Alaska to
maintain energy specialists in State government. Funding is used to
conduct resource assessments, fund projects, and provide technical
assistance and workshops.
Tribal Energy Program
Renewable energy studies are underway for Southeast Alaska, the
Yukon-Kuskokwim Delta region, and the Bristol Bay region.
______
Questions Submitted by Senator Harry Reid
FOR INSPIRATION AND RECOGNITION OF SCIENCE AND TECHNOLOGY (FIRST)
Question. In the fiscal year 2004 Conference Report we carried
language encouraging the Department to support competitors in the For
Inspiration and Recognition of Science and Technology (FIRST) robotics
competition, a brainchild of Dean Kamen, the inventor of the Segway and
several other remarkable devices. Do you mind describing what the
Department has done to follow-up on this direction?
Answer. Brookhaven National Laboratory (BNL) scientists and
engineers provided significant support to students of William Floyd
High School, Mastic Beach, NY, in the form of technical guidance and
assistance in the fabrication of the components to build a robot. BNL
is providing the funding necessary to purchase the competition kits for
Longwood High School, Middle Island, NY, and Port Jefferson High
School, Port Jefferson, NY, to participate for the FIRST event.
Additionally, special times for operation of the machine shop were
provided by BNL. The FIRST competition is exciting and rewarding with
the per team costs typically running between $10,000 to $15,000. The
Office of Science provided $20,000 to BNL to support these three high
school teams' participation in the FIRST event.
IOWA ENVIRONMENTAL/EDUCATION PROJECT
Question. Is the Iowa Environmental/Education Project, something
that has been described to me as a giant, $200 million roadside
terrarium, a worthy investment of Federal funds that will generate
useful, cutting edge science or is it just a huge waste of Federal
taxpayer dollars?
Answer. This Congressionally directed project will develop an
environmental and ``green energy'' education center on a 30 acre
Environmental Protection Agency Brownfield site in Coralville, Iowa. It
will not be a cutting edge research facility. The project includes an
indoor tropical rain forest, aquarium, educational center, and
galleries on the prairie eco-system, Midwest geology, and agriculture.
USER FACILITIES
Question. We have a large capital investment in the Office of
Science user facilities that serve many users at universities and
laboratories. Are we operating these facilities at maximum capacity in
the fiscal year 2005 budget to meet the needs of these scientists?
Answer. Overall, Office of Science user facilities are operating at
95 percent of optimum in the fiscal year 2005 request, 3 percent better
than in fiscal year 2004. (This metric is straightforward but perhaps
too simplistic, and we are working to develop a more sophisticated
metric for the fiscal year 2006 President's Budget.) It is always
difficult to find the right balance among competing priorities for
facility operations, research, construction, etc. We are satisfied that
we have allocated the funding in the request to achieve the best
balance possible.
INTERNATIONAL THERMONUCLEAR EXPERIMENTAL REACTOR (ITER)
Question. As I mentioned in my opening statement, I am pleased that
the United States has resumed its participation in the ITER (``EATER'')
project. However, the dollar levels look somewhat low, particularly in
light of our commitment to fund 10 percent of the total. Are the funds
in the budget adequate to fulfill our international requirements?
Answer. The fiscal year 2005 budget request for ITER is adequate
because the funds are for preparations for a subsequent ITER
construction project. The plan is for the construction project to start
in fiscal year 2006, at which time the U.S. funding requirement would
increase significantly.
Question. As a follow-up, the U.S. participation seems fairly
modest compared to that of several of the international partners. Are
you satisfied that it appears that the United States will be just a
junior partner in ITER. Is a larger role something we should aspire to?
Answer. The Department is satisfied that the 10 percent role is
appropriate for the United States. With the exception of the host, all
of the ITER Parties would be at approximately the same level of
participation. Each Party would receive the same benefits in terms of
equal access to the scientific and technological results from ITER, as
well as an equal role in planning the ITER scientific program.
Accordingly, a larger financial contribution for the United States is
not considered necessary.
Question. Dr. Orbach, as I understand it, the Department is getting
ready to select a site for a U.S. ITER Project Office. Could you please
explain the process for that selection?
Answer. The process for selection of the host for a U.S. ITER
Project Office consists of review by an independent Evaluation
Committee of Federal and non-Federal employees. This process will be
managed by the Chicago Operations Office. The conclusions of the
Evaluation Committee will be forwarded to the Office of Fusion Energy
Sciences for selection of the host by the director of that office.
Question. Given the importance of the ITER project to fusion
research and to the fusion community, has an expert independent review
board been appointed to guide that selection?
Answer. We are in the process of identifying members of such a
board.
FUNDING FOR CONCENTRATING SOLAR POWER
Question. I see that you have a $2 million request for funding for
the Concentrating Solar Power portion of the solar energy budget. While
I realize this is an improvement from the $0 you requested last year it
is a far cry from what I expected given that your office, the National
Academy, and many other national organizations all now agree that CSP
has merit and promise. Despite your words to the contrary, are you
giving up on Concentrating Solar Power?
Answer. We are not giving up on Concentrating Solar Power (CSP). As
you pointed out, last year we did not request any funding for CSP. In
light of recent studies we sought from an independent engineering firm,
a draft of which was reviewed by the National Research Council, we
propose $2 million to support a more thorough investigation of the
appropriate R&D course needed to realize the potential for CSP. The
fiscal year 2005 budget request will be used to maintain CSP facilities
at Sandia National Lab, to provide analytical support to States, and to
develop a comprehensive program plan to help inform the fiscal year
2006 budget development process and a longer term R&D plan.
Question. If not, what do we need to do to get this program back on
track?
Answer. DOE will develop a Concentrating Solar Power (CSP) program
plan which will use recommendations from the independent review studies
and take a systems approach to identify the highest value technology
R&D investments. These findings will then be used to inform the fiscal
year 2006 budget development process and a longer term R&D plan.
NATIONAL RENEWABLE ENERGY LABORATORY
Question. In the last three conference reports we have carried
language directing the National Renewable Energy Laboratory (NREL) to
deploy some of their technologies in Nevada in partnership with
industrial and university partners. It is my understanding that this
effort is working out well for everyone involved, but I would be
interested in your thoughts.
Answer. As a matter of principle and administration policy, we do
not support earmarks. Nevertheless, over the past 2 years, the
Department has worked closely with NREL and various State interests in
order to make the most effective use of these directed funds. A
competitive process was used to select projects that would bring
laboratory, university, and industrial partners together in the State
of Nevada to help develop the solar, geothermal, wind, and related
hydrogen resources in the Southwest. Per fiscal year 2004 Congressional
direction, the Department will continue these efforts and look for
additional opportunities to form alliances between Nevada's university
system, other Nevada State agencies, and industry to establish centers
of renewable energy expertise in the State. The ``RE Centers of
Expertise'' will likely include, but not be limited to, research and
development, training for future workers in renewable energy, and
technology demonstration and performance validation.
BIOMASS RATIONALE FOR CUTS
Question. Biomass seems to have taken a substantial cut in the
fiscal year 2004 request. By all accounts this program has been very
successful. Why are you cutting back at this time?
Answer.
FUNDING SUMMARY
[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Year Fiscal Year
Fiscal Year 2004 Fiscal Year 2004 Fiscal Year
Program/Activity 2004 Comparable 2004 Unencumbered 2005
Request Appropriation Earmarks Appropriation Request
----------------------------------------------------------------------------------------------------------------
Biomass Program (EWD and Omnibus 69,750 86,471 42,805 43,666 72,596
Appropriation)............................
Biomass Program (Interior)................. 8,808 7,506 ........... 7,506 8,680
--------------------------------------------------------------------
Total, Biomass Program............... 78,558 93,977 42,805 51,172 81,276
----------------------------------------------------------------------------------------------------------------
Excluding all the Congressionally-directed projects in fiscal year
2004, we are actually seeking $30 million more in fiscal year 2005 than
was appropriated last year toward the research and development (R&D)
goals established in our program plan and budget submissions. Our R&D
goals have been developed in consultation with the U.S. Department of
Agriculture, National Laboratories and the Biomass R&D Advisory Board
established by Congress.
In order to fund Congressionally-directed projects in fiscal year
2004, we have had to modify our program goals. Furthermore, we will
experience delays in achieving our key milestones and the broader
market acceptance of power, fuels and products derived from biomass. We
urge the committee to provide us the flexibility to spend Biomass funds
in accordance with our program plans, which will provide the best
potential for producing long-term positive returns on the taxpayers'
investment.
HIGH TEMPERATURE SUPERCONDUCTOR PROGRAM
Question. Do you think that the High Temperature Superconductor
program should be moved back into your organization, particularly in
light of the wholesale redirection of funds away from superconductors
that the Electricity Transmission and Distribution program has
undertaken?
Answer. The new Office of Electric Transmission and Distribution
(OETD) has voiced its strong support for High Temperature
Superconductivity (HTS). The funding of the High Temperature
Superconductor Program is not a result of the office in which the
program is housed, but rather the fact that Congress appropriated
$10.972 million less for transmission and distribution R&D in fiscal
year 2004 than in fiscal year 2003, the year before the new office was
created. Of the $69.467 million appropriated for R&D within OETD,
$25.75 million was for Congressionally Directed Activities, leaving
only $42.49 million ($6.285 million less than in fiscal year 2003) for
all R&D work.
FINANCIAL ASSISTANCE TO GEOTHERMAL DEVELOPMENT IN ALASKA
Question. What percentage of the division's budget will be
dedicated to providing financial assistance to geothermal development
in Alaska?
Answer. The fiscal year 2004 budget for the Geothermal Technologies
Program is $26 million. The program provides opportunities for Alaskan
entities to participate in open and competitive funding opportunity
announcements. Current and upcoming opportunities are valued at a total
of $5 million, or 19 percent of the program's budget. Alaskan proposals
will be considered alongside others in open competition.
______
Questions Submitted by Senator Patty Murray
GENOMICS: GTL FACILITIES
Question. Dr. Orbach, I understand you have recently published a
strategic plan for new facilities supporting DOE's missions. PNNL,
along with other research Institutions in the State of Washington, is
very interested and, indeed, believe we have a strong research
infrastructure to be the location of one of the GTL facilities in your
strategic plan and facilities plan.
What is your position on the schedule for the various facilities
with the genomics program, including the proteome analysis facility?
Answer. Our 20-year facilities plan lays out the time sequence of
the scientific user facilities, including those advocated by our
Genomics program. As the Genomics program evolves we hope to be able to
proceed with the construction and operation of the Genomics facilities.
PNNL, along with other research institutions in the State of Washington
should be in a strong position to successfully compete for one or more
of these facilities. I should also note that while the facilities plan
lists four large Genomics facilities, it is conceivable that evolving
scientific needs and the competitive solicitation process for each
facility could lead to us to fund multiple distributed facilities at a
smaller scale. As available funding allows, we intend to let the
science drive the ultimate makeup of these facilities.
ULTRA HIGH-SPEED SUPER COMPUTERS
Question. The Department of Energy has recently announced an
aggressive computing program, including ultra high-speed super
computers. What is your position on competition?
Answer. The Department believes that competition is critical to
ensuring effective stewardship of the taxpayers' investment in science
as well as selection of the best ideas to ensure the scientific
leadership of the country. We have just announced a solicitation to the
Office of Science laboratories to begin installation of a leadership
class computer for open science. The award will be made on the basis of
peer reviewed open competition.
HYDROGEN IN THE PACIFIC NORTHWEST
Question. What are the unique assets that research institutions and
the natural resources of the Pacific Northwest provide that will make
hydrogen a reality in the Northwest?
Answer. The Pacific Northwest uses renewable energy resources to
produce much of its energy. These resources can be tapped to produce
hydrogen. Hydropower is a carbon free source of inexpensive electricity
that can produce hydrogen via electrolysis. Wind can also be harnessed
to create hydrogen via electrolysis, with Washington and Oregon alone
possessing over 8,000 megawatts of developable wind generation
potential.
The Northwest is home to many organizations with the ability to
play a part in developing a hydrogen infrastructure. These include
State and city governments, the Bonneville Power Administration, fuel
cell developers (Ballard, Avista labs, IdaTech, etc.), major regional
universities, heavy truck and aerospace manufactures, Pacific Northwest
National Laboratory, and Idaho National Engineering and Environmental
Laboratory.
TIME SCALE FOR HYDROGEN IN NORTHWEST
Question. In what time scale do you see hydrogen being a viable
source of energy in the Northwest?
Answer. Hydrogen is not a source of energy, but an energy carrier
that can be produced from multiple energy resources. Because of the
many technical and cost hurdles associated with a transition to a
hydrogen economy, we don't expect wide scale use of hydrogen--in the
Northwest or elsewhere--before 2020.
INDUSTRY-LABORATORY COOPERATION
Question. Can you tell me more about industry's role in research
development and demonstration projects in the effort to develop a more
robust grid; specifically efforts underway involving national
laboratory and industry cooperation?
Answer. Industry-laboratory partnerships enable the full
development and/or deployment of new and promising technologies that
form the cornerstone of DOE's efforts to modernize the Nation's
Electric Transmission infrastructure.
Within the High Temperature Superconductivity's (HTS's) Strategic
Partnership Initiative (SPI), Los Alamos National Laboratory (LANL),
Oak Ridge National Laboratory (ORNL), IGC SuperPower, Waukesha Electric
Systems, Southwire Company, and American Superconductor are the primary
partners working together to develop High Temperature Superconducting
(HTS) wire, and four types of HTS electric power equipment prototypes,
including cables, motors, generators and transformers. This technology
will enable distribution and transmission cables that have three to
five times the capacity of conventional copper cables and higher
efficiency (especially useful in congested urban areas), and power
equipment with half the energy losses and half the size of conventional
equipment.
Examples of current research and development projects--all
involving DOE-Industry cost sharing--include the Boeing Phantom Works
with Argonne National Laboratory to design, fabricate and test a 35
kilowatt hour superconducting flywheel energy storage system as a power
risk management system that will give power users and utilities a full-
scale device to manage both cost and reliability risks; the General
Electric HTS Generator Project involving LANL and ORNL to install a 100
MVA prototype generator; the IGC SuperPower project with LANL to
develop and install a transformer component at a HTS substation; and
the Long Island Power Authority project with LANL involving the
installation of a HTS cable system.
Lawrence Berkeley National Laboratory has the lead for the national
laboratory/industry/university consortium that was formed to support
cutting-edge research in Transmission Reliability R&D, provided support
on the summer 2003 Blackout Investigation, and is integral to projects
for developing reliability tools.
The Pacific Northwest National Laboratory (PNNL) is part of the
national laboratory/industry/university consortium that was formed to
support research on Transmission Reliability R&D to transform the
Nation's distribution system. PNNL conducts evaluations of the
technological and institutional aspects of recent reliability events on
the Nation's electric power system, and is the lead for research
activities in real-time monitoring and control of the power grid. PNNL
partners with the GridWise Alliance, in which IBM, SEMPRA, the
Pennsylvania, New Jersey, Maryland Interconnection (PJM) and others
work to modernize the Nation's electric distribution system in
potentially revolutionary ways.
In fiscal year 2004, PNNL has provided support on the summer 2003
Blackout Investigation. PNNL supports development of communication and
control architectures and technologies, as well as the integration of
multi-vendor distributed energy resources into the distribution system.
PNNL supports development of technologies for improved load/demand
management while responding to market prices and electricity supply/
demand conditions.
Sandia National Laboratory (SNL) participates in a national
laboratory/industry/university consortium to support research on
Transmission Reliability R&D. SNL also works to develop advanced
superconductors based on the sol-gel chemical deposition process. For
energy storage, SNL develops improved energy storage system components
including power conversion electronics and modular multi-functional
energy storage systems.
Argonne National Laboratory performs research and development for
the HTS Program Activity. Argonne utilizes unique expertise in ceramics
and materials science to improve conductor performance and to
investigate deposition processes, such as metal-organic chemical vapor
deposition. Argonne also performs research on superconducting electric
motors, transmission cables, and flywheel electricity systems.
SUBCOMMITTEE RECESS
Senator Domenici. So that's it. We stand in recess. Thanks.
[Whereupon, at 11:23 a.m., Wednesday, March 3, the
subcommittee was recessed, to reconvene subject to the call of
the Chair.]
ENERGY AND WATER DEVELOPMENT APPROPRIATIONS FOR FISCAL YEAR 2005
----------
TUESDAY, MARCH 23, 2004
U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
The subcommittee met at 2:32 p.m., in room SD-138, Dirksen
Senate Office Building, Hon. Pete V. Domenici (chairman)
presiding.
Present: Senators Domenici, Bennett, Craig, Reid, and
Feinstein.
DEPARTMENT OF ENERGY
National Nuclear Security Administration
STATEMENT OF AMBASSADOR LINTON F. BROOKS, UNDER
SECRETARY
ACCOMPANIED BY:
ADMIRAL FRANK L. BOWMAN, DEPUTY ADMINISTRATOR, NAVAL REACTORS
PROGRAM
DR. EVERET H. BECKNER, DEPUTY ADMINISTRATOR, DEFENSE PROGRAMS
PAUL M. LONGSWORTH, DEPUTY ADMINISTRATOR, DEFENSE NUCLEAR
NONPROLIFERATION
OPENING STATEMENT OF SENATOR PETE V. DOMENICI
Senator Domenici. Good afternoon. This hearing will come to
order.
Today, the subcommittee will take testimony on the fiscal
year 2005 budget request for the National Nuclear Security
Administration. We will receive testimony from Under Secretary
and Administrator of NNSA, Ambassador Linton Brooks; Deputy
Administrator for Naval Reactors, Admiral Frank Bowman; Deputy
Administrator for Defense Programs, Dr. Everet Beckner; Deputy
Administrator for Nuclear Nonproliferation, Paul Longsworth.
It is a pleasure to have all of you here. I look forward to
your testimony today.
For the NNSA, the President has requested $9 billion, an
increase of 4.4 percent from the current year funding level of
$8.6 billion. As a percentage, this is a considerable increase
above the 1.2 percent growth in discretionary funding for
Department of Energy.
Ambassador Brooks, your responsibilities include the
important job of maintaining our shrinking nuclear stockpile
and to ensure that it serves its essential mission of
deterrence. Funding priorities in this account include
continuation of the stockpile refurbishment activities as well
as conducting important stewardship activities to ensure safety
and reliability, a vital necessity in the absence of
underground testing.
Your budget also continues to make the National Ignition
Facility, NIF, a top priority. I am deeply concerned that the
fiscal year 2005 budget has slipped the target date for
ignition back to 2014 as a result of numerous technical
challenges, including the cryogenic targets. To date, we have
spent $2.5 billion with another $4 billion that will be spent
over the life of the program. I don't believe it is prudent to
continue to throw good money after bad. I will do everything in
my power to ensure that program managers deal with the most
pressing technical issues before we allow the program to go any
further. In addition, I will work to ensure there are clear and
verifiable programmatic milestones.
I was surprised to see the request that nearly $500 million
is provided for the Robust Nuclear Earth Penetrator. The
Department should not assume such large sums in its budget
without Congressional approval or direction. What we are really
talking about is a stockpile plan. A successful report
validates design feasibility and need and does not force the
inclusion of such a large amount of money. I want it explained
to this committee, unequivocally, so what we are doing and what
we are authorizing and what we are not doing and what we are
not authorizing. Because nobody on this committee is voting to
do this. We are voting to study it if it wins but not to do it.
To study it is a small amount of money. If we do it it is a lot
of money.
The budget also provides $124 million, a 21 percent
increase above current year funding in the safeguards and
security accounts to respond to the new design basis threat.
That new security requirements, that these new ones are driving
costs to such a high level it is diverting limited resources
from other cash-strapped programs within DoE. While I recognize
the need to protect this special nuclear material I fear that
there is not a plan to consolidate the nuclear material across
NNSA complex in order to lower our security costs and at the
same time minimize terrorist threats.
Ambassador Brooks, I am somewhat disappointed that the
administration has failed to provide the nuclear stockpile
report that was required in the 2004 Energy and Water Bill.
This is an important priority within this bill and I would
appreciate it if you would take the message back to the
Forrestal Building and to the Pentagon that we are eagerly
awaiting that report. Soon this committee will begin developing
our budget priorities. Failure to produce the stockpile report
will have serious consequences for your funding priorities next
year. I need not spend any more time; you had better answer it,
acknowledging that what I am talking about is right and you had
better promise us to fix it or we will have big troubles
between you and this committee, I assure you. This should have
already been done.
Finally, I am very discouraged with the funding cuts
proposed in 2005 for the Mesa Facility at Sandia and the CMR
replacement facility at Los Alamos. Shortfalls of a serious
budget nature will delay these construction projects, adding to
the costs and limiting the lab's ability to perform critical
stockpile work.
Now, I understand you are short of money. You get told by
the OMB what to do but some of this, you know, we are not going
to do what you ask us just because OMB let you, we are going to
do what we think and not let you do some of the things that
they have told you that you can do. I will have my turn on
these laboratories when I ask you the questions.
I will just make a statement ad lib now, that everything
that I can now read about America in the globalization and jobs
would indicate that what this country needs more than anything
else is new technology breakthroughs. And we need them quick.
We need new things that follow on the computer with new
technologies. And if I understand correctly, those come in the
fields of micro-engineering, probably, and nano-science, and
the center for those should have been Mesa. Maybe it still will
be but if we delay it so long it will not be.
In addition to maintaining the nuclear stockpile, you at
the NNSA also have the important challenge of preventing the
spread of nuclear material, technology and expertise that could
be used to develop and use weapons of mass destructions. The
Office of Nuclear Non-Proliferation works very hard to secure
weapons-grade material and prevent the sale of technology used
by countries to develop nuclear weapons.
Mr. Ambassador, I must compliment you and Mr. Longsworth
and his staff for the role DoE played in disarming Libya, as
well as uncovering the proliferation activities operated by
Pakistan's top nuclear weapons scientist, Abdul Khan. We
congratulate you on that. And we only fail to understand how
Abdul Khan, with what we know he has already done, is still
free. If somebody else in the world had done that, God knows
what would have happened.
Another top priority for the office is to ensure the
success of the U.S./Russian MOX program that will dispose of 34
tons of plutonium from each of the Russian and U.S. stockpiles.
I am very pleased, Senators, to have been part of that. Senator
Reid, you remember when I helped put it together and went to
Russia with President Clinton, but I am very, very concerned
about the lack of progress in these negotiations. How long ago
did this start? 1998. U.S. negotiations to work with the
Russians where we to try to find an acceptable solution so we
can break ground on this project and we are hung up over what I
think are trivial negotiating issues. I recently told the White
House that maybe they ought to put some bigger people in the
position of negotiating. How a little issue of indemnification
can hold this up is beyond me. Now I find that indemnification
has occurred between Russians and us and some other program
where the liability potential might have been more severe than
this, and the Russians came to the table. They would not have
got that one done, if I would have had anything to do with it,
until they get this one done. This is a way to get rid of a
huge chunk of nuclear-grade plutonium.
Admiral Bowman, thank you for your participation in what
may be your last hearing before the subcommittee. I appreciate
your steady hand. The Naval Reactors Program continues to serve
as the world's gold standard for safe and reliable operations
of nuclear power. I am interested to know how your office has
been handed the responsibility of producing the next generation
of space reactors. Traditionally this has fallen to the Office
of Nuclear Energy, which has developed some expertise in these
unique engineering systems. I surmise that part of the reason
it went where it did is that you have more expertise than they
had in the area.
PREPARED STATEMENT
Dr. Beckner and Mr. Longsworth, I appreciate your
participation and welcome your input.
[The statement follows:]
Prepared Statement of Senator Pete V. Domenici
Good morning--this hearing will come to order.
Today, the subcommittee will take testimony on the fiscal year 2005
budget request for the National Nuclear Security Administration.
We will receive testimony from Under Secretary and Administrator of
the NNSA, Ambassador Linton Brooks; Deputy Administrator for Naval
Reactors, Admiral Frank Bowman; Deputy Administrator for Defense
Programs, Dr. Everet Beckner; and Deputy Administrator for Nuclear
Nonproliferation, Paul Longsworth.
You have all testified before this subcommittee before and it is a
pleasure to have you here again. I look forward to your testimony
today.
For the NNSA, the President has requested $9 billion, an increase
of 4.4 percent from the current year funding level of $8.6 billion. As
a percentage, this is a considerable increase above the 1.2 percent
growth in discretionary funding for Department of Energy.
Ambassador Brooks, your responsibilities include the important job
of maintaining our shrinking nuclear stockpile and to ensure that it
serves its essential mission of deterrence. Funding priorities in this
account include continuation of the stockpile refurbishment activities
as well as conducting important stewardship activities to ensure safety
and reliability--a vital necessity in the absence of underground
testing.
Your budget also continues to make the National Ignition Facility
(NIF) a top priority. I am deeply concerned that the fiscal year 2005
budget has slipped the target date for ignition back to 2014 as a
result of numerous technical challenges, including the cryogenic
targets. To date, we have spent $2.5 billion with another $4 billion
that will be spent over the life of the program. I don't believe it is
prudent to continue to throw good money after bad. I will do everything
in my power to ensure that program managers deal with the most pressing
technical issues before we allow the program to go any further. In
addition, I will work to ensure there are clear and verifiable
programmatic milestones.
Like many of my colleagues, I was surprised to see in the budget
request that nearly $500 million is provided for the Robust Nuclear
Earth Penetrator (RNEP) in out-year funding. I want be absolutely
clear, without a stockpile plan and a successful report that validates
design feasibility and need; the Department should not assume such
large sums in its budget without Congressional approval or direction.
This budget also provides a $124 million increase (21 percent above
current year funding) in the Safeguards and Security Account in order
to respond to the new Design Basis Threat. The new security
requirements are driving costs to such a high level, it is diverting
limited resources from other cash-strapped programs within DOE. While,
I recognize the need to protect this special nuclear material, I fear
that there is not a plan to consolidate special nuclear material across
the NNSA complex in order to lower our security costs and eliminate
potential terrorist threats.
Ambassador Brooks, I am disappointed that the administration has
failed to provide the nuclear stockpile report that was required in the
fiscal year 2004 Energy and Water bill. This is an important priority
within this bill and I would appreciate it if you would take the
message back to the Forrestal building and to the Pentagon that we are
eagerly awaiting that report. Soon this subcommittee will begin
developing our budget priorities. Failure to produce the stockpile
report will have serious consequences for your funding priorities next
year.
Finally, I am discouraged with the funding cuts proposed for fiscal
year 2005 for the MESA facility at Sandia and the CMR Replacement
facility at Los Alamos. Serious budget shortfalls will delay these
construction projects adding to the overall cost and limiting the labs
ability to perform critical stockpile work.
In addition to maintaining the nuclear stockpile, the NNSA also has
the important challenge of preventing the spread of nuclear material,
technology and expertise that could be used to develop and use weapons
of mass destruction. The Office of Nuclear Nonproliferation works very
hard to secure weapons-grade material and to prevent the sale of
technology used by countries to develop nuclear weapons.
Ambassador Brooks, I must compliment you, Mr. Longsworth and his
staff for the role DoE played in disarming Libya as well as uncovering
the proliferation activities operated by Pakistan's top nuclear weapons
scientist Abdul Khan.
Another top priority for that office is to ensure the success of
the U.S./Russian MOX program that will dispose of 34 tons of excess
plutonium from each of the Russian and U.S. stockpiles. This is an
important project from a proliferation standpoint, but I am concerned
about the lack of progress in negotiations. I have worked hard to push
U.S. negotiators to work with the Russians to find an acceptable
solution that will allow us to break ground on this important project
and forever dispose of the plutonium.
Admiral Bowman, thank you for your participation in what may be
your last hearing before this subcommittee. I appreciate your steady
hand on the rudder. The Naval Reactor program continues to serve as the
world's gold standard for safe and reliable operations of nuclear
power.
Admiral, I am interested to know how your office has been handed
the responsibility of producing the next generation of space reactors.
Traditionally, this responsibility has fallen to the Office of Nuclear
Energy, which has developed an expertise in designing these unique
energy systems.
Dr. Beckner and Mr. Longsworth, I appreciate your participation in
this hearing and welcome your input.
Now, I will yield to Senator Reid for any opening statement he
would like to make.
Senator Domenici. Now I yield to Senator Reid for comments
and then we will proceed. Senator Reid.
Senator Reid. Thank you very much, Mr. Chairman. I welcome
you back after the recess. I hope your recess went well.
Senator Domenici. Thank you. It did.
STATEMENT OF SENATOR HARRY REID
Senator Reid. Ambassador Brooks, by and large I believe you
and your team are doing a good job. I have met with you on
occasion and you have always been forthcoming in spite of the
rocky start that you and I had regarding your confirmation. I
think you have been candid with me and I have tried to be with
you. I have, as with Senator Domenici, a long tenure on this
subcommittee; we go back to the days of Dr. Victor Reis where
we were trying to come up with a stockpile stewardship program.
And I think we came up with one to have a safe and reliable
nuclear stockpile, clearly the safest and most secure of any in
the world. And even though I fought Senator Domenici initially
on establishing the entity which you lead, Senator Domenici was
right; I think it has been a tremendous step forward. And
General Gordon did such a remarkably good job, he has very
large shoes to fill, as you know. He had a commanding
personality and his great record, I think, added the prestige
needed to get this new entity started.
So, I have reviewed your testimony, budget request, and I
will bet there is not a hearing that I have attended, or will
attend during this budget cycle, that they would not love to
have OMB sign off on what you have gotten. I do not know of an
entity that has been treated better than yours that I have seen
this whole year. Your problem is not an inadequate budget
request, your problem is going to be holding on to what you
already have. This subcommittee may be as much as $1.7 billion
in the hole due to a combination of inadequate funding
requests, especially the Corps of Engineers, budget gimmicks
that certainly are just amateurish and the budget committees
have chosen not to accept these gimmicks.
Holding NNSA harmless may not be possible unless the
subcommittee is given a sizeable increase in its allocation. I
read an article during the recess that suggests, Mr. Chairman,
you have secured a commitment from the Majority Leader and the
Chairman of the Budget Committee that our subcommittee will
remain healthy at the end of the budget process. I certainly
hope so. It is not just this subcommittee, it is the entire
Senate that benefits. And having said that, the entire country
benefits from giving us a better budget mark than what we have.
And if that is the case, Senator Domenici, you deserve every
accolade that you can get, and I would be the leading
cheerleader for this if your efforts are successful.
Second, Ambassador Brooks, you are going to hear a lot, as
you already have heard, from the chairman of this subcommittee
about a number of things. One of the things I know he is
frustrated about is the National Ignition Facility. And as we
look back at the ability of that project to go forward, I have
to say that project would not have gone forward but for Senator
Domenici. I was ready to can that whole thing. But Senator
Domenici and I try to work together on this subcommittee as
much as we can and as a result of our working together we let
this project go forward. And Senator Domenici, having been the
lead person on this, I on a number of occasions will set aside
my personal feelings about what is going on because of his
initial involvement in this. So what I am saying is that I
think you are going to have to take a closer look at NIF
because Senator Domenici certainly is going to take a close
look at it. We know there have been some problems in the latest
snafu, and I think that this is something that we have to look
at closely because I know the chairman is going to look at it
closely. NIF has a large number and unless we get our budget
allocation changed we are going to have to look there for some
of the money to take care of other things.
Third, you are requesting expanded funding for a number of
very controversial items: Robust Nuclear Earth Penetrator,
Modern Pit Facility, Advanced Nuclear Concepts Program. Last
year, the House of Representatives, without a word of dissent
to be heard anywhere in the House, slashed funding for these
programs. The Senate bill fully funded them; there was an
amendment offered on the Senate floor to cut the funding. It
failed although it had support of most of the Democratic
Caucus. The point I am making is that you need to tread very
carefully here. Congressional support for these programs is not
very strong and I would encourage you to be very candid on a
regular basis with your plans and intentions for all these
programs. The memo you sent the laboratories regarding the
Advanced Concepts Program last year, the one that seemed to
indicate that it was okay to move forward as planned regardless
of Congressional guidance, concerns us all. I am willing to
give you the benefit of the doubt that you are not encouraging
your contractors to ignore our intent but I strongly suggest
that you and your staff work very closely with us up here on
these initiatives.
I am a little concerned, maybe even put off, by the notion
that you have included a half-a-billion dollars in your out-
year spending plan as what you call a ``placeholder'' for
bunker busting pending White House and Congressional decisions.
I am not sure that we can allow this to go forward. This is a
large ``placeholder.'' Many of us remain unconvinced that this
is an appropriate path.
Finally, on the subject of working with us here in
Congress, our Conference directed you to submit the Revised
Stockpile Plan to us with fiscal year 2005 budget request. We
carried these words because we were beyond being fed up with
waiting for the Plan half-a-year ago. The budget request has
been here for nearly 2 months and we still have no sign of the
Revised Stockpile Plan. We set that date in consultation with
your staff so we can use that document to assist our financial
decision-making. I am not interested in the story about how
complicated it is to get such an important document signed or
how many people over at the White House or NNSA need to read
it, polish it, refine or rewrite it; it is just way overdue and
we need to get the document up here. I might even suggest that
we write a bill that fences off every dollar above current year
levels for NNSA until this is provided. And I hope this gets
the White House's attention. And I am convinced, Ambassador,
that this is not you personally holding this up and you need
not comment on that. But sometimes we get a little put-off by
someone who is a Secretary or an Administrator such as you are
who comes here and says to us privately, well, I'm not the one
holding this up. And you are the person that we look to.
So, I want to thank each of your deputies for being here;
Dr. Beckner, Admiral Bowman, Mr. Longsworth, we appreciate that
very much.
The chairman's not here so the acting chairman, Senator
Bennett, I would ask permission of the chair to be able to
submit questions in writing and would ask that you, the
witnesses, get back to the subcommittee within 10 days. We have
a little parliamentary problem on the floor that I am going to
work on.
Senator Bennett [presiding]. Without objection.
Senator Reid. Thank you very much.
STATEMENT OF SENATOR ROBERT F. BENNETT
Senator Bennett. Thank you, Senator Reid, very much.
When the Chairman returns I will make it clear that I hope
to have more than a single round of questioning because I have
a number of concerns that I want to raise and a number of
issues that I think have to be made very clear for the record.
I assume you know the history of southern Utah with respect
to nuclear testing in Nevada. It goes back to the 1950's and
the 1960's, and Utahans were not only let down by their
government, quite frankly, Utahans were lied to by their
government. Things that were done in those periods in
retrospect are incomprehensible. Students were let out of
school and taken out to the schoolyard to stand in the open air
and look for the flash of the above-ground test and then watch
the cloud as it went over. And the incidence of cancer and
other problems that occurred among people who lived down-wind
from the Nevada testing site has been well documented and
Congress has taken actions with it and I will not review all of
that past. But I think if you are not familiar with that past
you should be and therefore understand why the people of
southern Utah, in particular, are very suspicious of anything
the government says about nuclear testing, above-ground or
below-ground, and for that reason, Mr. Chairman, I intend to
use this opportunity to ask a number of questions, quite
pointed. I expect that I will get direct answers so that they
will be firmly on the record and there will be no ambiguity
about some of this.
Now, while I speak with that background as the Senator
representing Utah, I want to make it clear that my concern for
the safety of the people of Utah is not limited to Utah. I, as
a Senator, must be concerned about the safety of all of the
people who will be down-wind from any test that will occur, and
that would include not only everybody in the United States but
given the jet stream and the way we now understand the weather
goes around the world, accidents or sloppiness in testing in
Nevada can affect far more than just Utah. So while I speak
here as the Senator for Utah I want to make it clear that I
want to be sure that health and safety for everyone in America,
and to the degree it gets beyond our shores, to the rest of the
world becomes the primary concern. And I know that none of you
were involved in the things that were done back in the 1950's
and 1960's when the government lied to its citizens in that
part of the world and that is fine.
But that means that we must be even more circumspect and
more penetrating in our attempts to make sure that this
administration does not repeat, in any way, either
inadvertently or deliberately, the things that have happened in
the past. There is still a great deal of skepticism among those
who live in southern Utah about any government pronouncement on
this issue and that is why, Mr. Chairman, I intend to be fairly
penetrating in the question period. And I said before you came
I hope we will have more than one round so that I will have
time to explore all of this properly.
Senator Domenici [presiding]. Senator, if we do not finish
and you need some more, we would turn the committee over to you
and you can spend the whole afternoon.
Shall we proceed? Do you need to make an opening statement,
Senator?
Senator Feinstein. I do, Mr. Chairman. I hate to tell you.
Senator Domenici. Well, we were not going to have them but
I got out of here and it got started. So we have got to let
you.
Senator Bennett. When you relinquished the gavel for 30
seconds I took advantage of it.
Senator Domenici. Go ahead.
Senator Feinstein. Thank you very much.
Senator Domenici. We want to be brief.
STATEMENT OF SENATOR DIANNE FEINSTEIN
Senator Feinstein. I will try very hard to be brief but I
think as Mr. Brooks knows I have very strong views on the
proposed nuclear program and I wanted to make a couple of
comments about it. Ambassador Brooks was nice enough to spend
some time with me in my office, and I appreciate that very
much, and went over his views of what the program is. The more
I read about the program the more I believe it is something
else and I would characterize that something else by saying it
is a reopening of the nuclear door.
Just where you sit last year Secretary Abraham sat. He said
we have no intentions of proceeding with new nuclear weapons.
Secretary of Defense, at a Defense Appropriations hearing, came
before us and said that the Robust Nuclear Earth Penetrator is
a study, it is nothing more and nothing less. And then, if you
look to follow the money, I think you see that it is much more
than that. This year's budget request includes the $27.5
million for the Earth Penetrator, the $9 million for the so-
called Advanced Weapons Initiative, and the $30 million for the
Modern Pit Facility to make up to 450 new pits, which as you
know we discussed and you said there was no way of knowing
whether we need this kind of improvement in the Pit Facility.
And the Revised Stockpile Plan has not yet been presented to
the best of my knowledge. But if you look at the Congressional
Research Service, they now report that the administration's own
long-term budget plan includes $485 million for the Robust
Nuclear Earth Penetrator between 2005 and 2009. I think that
number casts doubts on the contention that this is just a study
and that all we are doing is just a study. Because I do not
believe there can be a commitment of nearly $500 million for
just a study. And I think it means that the administration is
determined to develop and field a new generation of nuclear
weapons. And this Senator is strongly opposed to that.
I think by seeking to develop new nuclear weapons, and as
indicated in the Nuclear Posture Review, a new doctrine that
considers nuclear weapons in the same category as conventional
weapons, the United States is sending a message that nuclear
weapons have a future battlefield role and utility. And by
doing so I believe we are going to make our Nation and our
allies less secure, not more secure. And if the United States
opens the door to the development, testing and deployment of
new nuclear weapons. So I am just here to kind of follow this
thing along and I am going to try to oppose it at every step of
the road because I do not believe the American people want to
support a new generation of nuclear weapons.
PREPARED STATEMENT OF SENATOR LARRY CRAIG
Senator Domenici. Senator Craig has also submitted a
prepared statement which will be included in the record.
[The statement follows:]
Prepared Statement of Senator Larry Craig
The DOE's nuclear weapons programs are of great interest to the
Nation and to this subcommittee. DOE is a significant national security
agency. Both the Chairman and Ranking Member of the subcommittee have
parts of the nuclear weapons complex located in their States.
Idaho has a stake in these programs, too. As Admiral Bowman is
aware, there isn't a single element of nuclear fuel that gets
discharged from a Naval reactor that does not end up in Idaho. The fuel
is examined in Idaho and then stored there for the long term. This work
is the reason why Navy cores now last ``the life of the ship.''
Naval Reactors is now being tasked to provide this kind of
expertise to space nuclear reactors. Idaho can bring much more to this
enterprise than simply being the resting place for the Navy's spent
fuel. I ask our witnesses to consider that, as they go about deciding
how to approach this new space nuclear mission.
DOE also has the job of stopping the proliferation of nuclear
materials which is an important one in the world we face. I believe
that DOE should more closely coordinate its nuclear nonproliferation
missions with those of DOE's Office of Nuclear Energy. People around
the world want cheap, abundant energy. They might decide nuclear energy
is the way to get there. If they decide to build nuclear reactors, I am
confident that this country can design reactors that do not cause the
spread of enriched materials around the globe. Scientists at the Idaho
National Lab can contribute to solving this challenge.
Finally, I would ask all of our witnesses to consider the issue of
economic security. A prosperous world will be more secure. A world
where resources are scarce and people are in conflict will be a more
dangerous world. Energy security is a key part of national security of
global security. I challenge each of you to think more broadly about
the role of energy technology in our national security. It is an
essential element, and we need to devote the resources to it.
Greater support for energy technology should be part of the
appropriations bill we craft. For our national security, we also need
to pass a comprehensive energy bill as soon as possible. The chairman
of the subcommittee has worked diligently on that, as have I. We will
continue to do so.
Senator Domenici. Well, let me first say, so there is no
misunderstanding, I do not favor a new round of the development
of nuclear weapons. I think I am just as firm on that as is the
distinguished Senator from California. But I do believe
research is not static with reference to nuclear activity. And
so we will go into this a little more and ask whether we can
actually ask our great scientists to just close their minds to
these issues and say they cannot study them even if they fall
right before their face. So we will have our arguments. The
California Senator can contend we are building new weapons; I
will contend we are researching them. She can contend we are
paying for $500 million worth; I will say we are going to vote
for a small number and no more in the language of dollars, and
the language will say what it is for and no more. So with that,
I would like to proceed.
What is your pleasure? Shall we start with the Ambassador?
All right, Mr. Ambassador, please proceed.
STATEMENT OF AMBASSADOR LINTON F. BROOKS
Ambassador Brooks. Thank you, Mr. Chairman. I want to thank
the Members for their support for our national security
efforts. I have prepared some detailed written testimony I
would like to submit for the record, and I would like to
summarize that now. And I would like it if Admiral Bowman could
follow me and talk about the Naval Reactors portion which I
will not cover.
Senator Domenici. On the record.
Ambassador Brooks. As you said in your opening statement,
the fiscal year 2005 request totals just over $9 billion, which
is a 4 percent increase over 2004 and is consistent with the
long-range plan presented to the Congress last year. For
weapons activities we're seeking $6.5 billion. That will
maintain the safety and reliability of the nuclear weapons
stockpile, enhance stockpile surveillance in the engineering
base, refurbish and extend the service life of warheads,
maintain an R&D base and support the required facilities and
infrastructure. I am pleased with the ability of the Stockpile
Stewardship Program to certify the safety, security and
reliability of our aging nuclear weapons and I'm pleased that
we can do that without having to consider returning to
underground nuclear testing. And, the cutting edge scientific
and engineering tools that we are requesting in this budget
will let us continue these certification efforts with the same
kind of confidence.
We are extending the life of several existing weapons; that
life-extension program is proceeding well. This year, we will
complete the life-extension for the W87 ICBM warhead and we
expect to meet DOD schedules for the submarine launched
ballistic missile W76, the B61 bomb and the W80 cruise missile.
The National Ignition Facility will perform its first Stockpile
Stewardship experiment this year using four of its eventual 192
laser beams. We have recently devised a strategy that will
ensure ignition experiments begin in 2010 as previously
planned. During the question and answer period we can explain
technically why that now appears feasible.
Our Advanced Simulation Computing Program will deliver two
new machines, one this year, one next year, which will be the
fastest computers in the world and, more importantly, will help
us provide important data on the health of the stockpile.
The Nuclear Posture Review gave infrastructure equal
priority with offensive and defensive forces. We have two
accounts in the budget that are essential to our ability to
maintain such an infrastructure. Readiness in Technical Base
and Facilities provides the funding to operate and maintain our
facilities over the long-term. In contrast, there's a
Facilities and Infrastructure Recapitalization Program which is
a get-well program the Congress authorized designed to
eliminate maintenance backlogs this decade. We expect to meet
our goal of eliminating those backlogs and have the so-called
FIR-program go out of existence shortly after the end of the
decade. These two programs are fixing the backlog and restoring
the weapons complex. They're crucial and I urge the committee
to fully support them.
Now, these programs will allow us to maintain the stockpile
for the next decade. Nuclear Posture Review recognized the need
over the long-run to design and build a Modern Pit Facility.
That's a poor term, it might better be called a Pit Rework
Facility. It'll support the pit remanufacturing needs of the
stockpile. It's important to understand we need this facility
even if the United States never produces another nuclear weapon
of any kind. All existing plutonium pits will ultimately need
to be rebuilt due to aging effects caused by the radioactive
decay of plutonium. Last year's conference requested that we
delay issuing the Final Environmental Impact Statement in
selecting a site for the Modern Pit Facility pending the
submission of the Revised Stockpile Plan that was referred to
in several of the Members' opening statements. This decision to
delay site selection doesn't affect our very limited efforts at
Los Alamos to manufacture a W88 pit nor to reestablish the
capability that we've not had in almost 15 years. We're on
schedule to produce a War Reserve pit for our Trident-2 missile
by 2007.
Now, I have no reason to doubt the ability of the Stockpile
Stewardship Program to continue to ensure the safety, security
and reliability of the enduring stockpile. But we must maintain
our ability to carry out a nuclear weapons test in the event of
some currently unforeseen problems that can't be resolved by
other means. Our fiscal 2005 request allows us to meet the
requirements of the Defense Authorization Act to achieve by
October 2006, a readiness to conduct an underground test within
18 months. The President has made it very clear we have no
intention of resuming testing. Our plan is to improve test
readiness posture, a prudent hedge against the possibility of a
problem arising in the stockpile that can't be confirmed or
fixed or certified without a nuclear test. I also want to make
it clear that much of the money that we are requesting goes to
ensure, through very detailed analysis, the absolute safety of
any hypothetical future nuclear test. We are extremely
conscious of our safety responsibilities and intend to ensure
that if it ever becomes necessary to resume nuclear testing we
can do so safely.
ADVANCED CONCEPTS
The programs I have described let us maintain the stockpile
and correct unforeseen problems. The Nuclear Posture Review
also highlighted the importance of ensuring the weapons complex
can adjust to changing requirements of nuclear deterrence in
the coming decade. We're requesting $9 million, about one-tenth
of 1 percent of our budget, for research on advanced concepts
and we're requesting, as has been mentioned by several Members,
$27 million to continue the Nuclear Earth Penetrator
feasibility study.
There's been a great deal of discussion on the implications
of these programs and I'd like to comment on them in a little
more detail. Some of the discussion has been based on a
misunderstanding of our intent. In his opening statement, the
Ranking Member specifically noted one reason for that, a poorly
written memorandum that I sent in December. I'd be delighted to
submit, for the record, that memorandum, a criticism of it by
another committee and my response, in order to make it clear
that what we have here is poor drafting and not an attempt to
thwart the will of the Congress.
We intend to use our Advanced Concepts funds to
investigate----
Senator Domenici. Are you going to make those a part of the
record?
Ambassador Brooks. Yes sir, if I may.
Senator Domenici. Yes, please do.
[The information follows:]
Department of Energy,
National Nuclear Security Administration,
Washington, DC, December 5, 2003.
Pete Nanos,
Director, Los Alamos National Laboratory.
Michael Anastasio,
Director, Lawrence Livermore National Laboratory.
C. Paul Robinson,
President, Sandia National Laboratory.
On November 24, 2003, President Bush signed the National Defense
Authorization Act for fiscal year 2004. Section 3116 of this law
repealed the 1994 law prohibiting the Secretary of Energy from
conducting research and development that could lead to the production
of a new, low-yield nuclear weapon (i.e., Section 3136 of Public Law
103-160--the so-called PLYWD restriction). The administration had
sought to remove this restriction because of the chilling effect it has
had on nuclear weapons research and development.
On behalf of the administration, I would like to thank you and your
staff for helping to support this important effort, we are now free to
explore a range of technical options that could strengthen our ability
to deter, or respond to new or emerging threats without any concern
that some ideas could inadvertently violate a vague and arbitrary
limitation. (Of course, testing, acquisition or deployment of any
nuclear weapon--low-yield or otherwise--or commencement of weapons
engineering development or subsequent phases, requires authorization by
Congress).
Along these lines, I expect your design teams to engage fully with
the Department of Defense to examine advanced concepts that could
contribute to our nation's security. Potentially important areas of
such research include agent defeat and reduced collateral damage.
In addition, we must take advantage of this opportunity to ensure
that we close any gaps that may have opened this past decade in our
understanding of the possible military applications of atomic energy--
no novel nuclear weapons concept developed by any other nation should
ever come as a technical surprise to us.
Repeal of the PLYWD restriction on nuclear weapons research and
development represents, in part, an endorsement by Congress of our
efforts to begin to address the nuclear weapons stockpile in accordance
with the recommendations of the administration's Nuclear Posture Review
to meet the security needs of the 21st century. We should not fail to
take advantage of this opportunity.
Linton F. Brooks,
Administrator.
______
Congress of the United States,
House of Representatives,
Committee on Appropriations,
Washington, DC, January 22, 2004.
The Honorable Linton F. Brooks,
Administrator, National Nuclear Security Administration, 1000
Independence Avenue, S.W., Washington, DC 20585.
Dear Ambassador Brooks: We are deeply concerned by the tenor and
substance of your December 5, 2003, memorandum to the directors of the
three National Nuclear Security Administration (NNSA) weapons
laboratories. You are well aware of our reservations about embarking on
significant new nuclear weapons design initiatives under the advanced
concepts proposal, and this issue was a significant point of
disagreement with the Senate during the Energy and Water Development
conference negotiations last fall. These issues continue to command
much of our attention and will do so in our consideration of the
Department's fiscal year 2005 budget request.
Therefore, we were troubled to read your guidance that the weapons
laboratories are now ``free to explore a range of technical options
that could strengthen our ability to deter, or respond to new or
emerging threats, without any concern that some ideas could violate a
vague and arbitrary limitation.'' Your memo also encourages your
``design teams to engage fully with the Department of Defense'' and
``to take advantage of this opportunity to ensure that we close any
gaps that may have opened this past decades in our understanding of the
possible military applications of atomic energy . . .''.
You should be very well aware of our concerns about this advanced
concepts work on new nuclear weapons, and of the language in the fiscal
year 2004 conference report for Energy and Water Development
Appropriations that fences two-thirds of the advanced concepts funding
pending submission to Congress and Congressional review of a revised
nuclear weapons stockpile report. However, your guidance memo to the
weapons laboratories contained no mention of this funding restriction--
the only message conveyed to the weapons laboratories is that of
unbridled enthusiasm for new weapons designs and for seeking new
military missions for nuclear weapons.
Having had several discussions with you on advanced concepts, we
took you at your word that you were willing to redefine the scope of
the Advanced Concepts work to address our concerns. Unfortunately, it
is now apparent to us that those were hollow assurances and that the
NNSA is determined to charge forward with unrestricted efforts on
advanced nuclear weapons concepts. Nothing in your direction to the
weapons researchers communicates any sense of the measured and
thoughtful steps that must be taken by the NNSA before Congress is
comfortable with the direction the Department is proposing. In
addition, your memo also makes us question the sincerity of your
commitment to address our concerns regarding the schedule and sizing of
the proposed new Modern Pit Facility.
Although we find your actions unhelpful, they are at least
instructive in gauging the actual intent of the Advanced Concepts work
proposed by the Administration; we will view future proposals from the
Department with this memorandum in mind.
Sincerely,
Peter J. Visclosky,
Ranking Minority Member.
David L. Hobson,
Chairman, Subcommittee on Energy and Water Development.
______
Department of Energy,
National Nuclear Security Administration,
Washington, DC, January 27, 2004.
The Honorable Peter J. Visclosky,
Ranking Minority Member, Subcommittee on Energy and Water Development,
Committee on Appropriations, U.S. House of Representatives,
Washington, DC 20515.
Dear Mr. Visclosky: Thank you for your letter of January 22, 2004,
which expresses concerns over my December 5, 2003, memorandum to the
Directors of the three National Nuclear Security Administration weapons
laboratories. Your letter clearly conveys that, in your view, my
memorandum fails to take into account the concerns of the Congress with
regard to advanced concepts development.
I have reviewed the memorandum in question and agree some of the
wording could lead to misinterpretation of my intent. I regret any
misunderstanding. The memorandum was sent to document the removal of
the prohibition on conducting research and development that ``could''
lead to development of a new, low-yield nuclear weapon. As my
memorandum stated, the removal of this provision in the fiscal year
2004 Defense Authorization Act allows us to explore advanced concepts
without an artificial constraint. Repeal of this restriction was
strongly supported by the House Armed Services Committee.
My memorandum did not direct the conduct of specific research aimed
at developing new weapons. We intend to use the advanced concept money
to investigate new ideas, not necessarily new weapons. For example, the
first two million dollars of the fiscal year 2004 funding will be used
for examining the feasibility of adapting an existing weapons carrier
and existing nuclear warheads to achieve a delivery system with greater
assurance that the intended nuclear mission could not be compromised by
either component failure or adversary attack; i.e., greater reliability
for nuclear missions. Because the remaining funds will not be available
until we have submitted a revised nuclear weapons stockpile report and
the Congress has had time to review that report, we have not yet
determined how the remaining funds will be used. We will, as my
December memorandum states, be engaging closely with the Department of
Defense on how best to use these funds. Appropriate uses might include
examining the feasibility of improving design margins of existing
warheads in order to ensure still greater reliability in the absence of
nuclear testing or examining other features to improve safety further.
In your letter, you expressed two additional concerns. First, you
noted that I did not indicate that two-thirds of the advanced concepts
money is fenced until we submit a revised nuclear weapons stockpile
report and the Congress has had time to review that report. I did not
include that provision because I had personally delivered to each of
the laboratory directors a copy of both the bill and the committee
report and had highlighted that provision to them.
You also expressed doubt about the Administration's plans with
respect to the Modern Pit Facility. To remove any doubt on our plans, I
have enclosed a draft press release for your consideration which will
be released on Wednesday, January 28, 2004, indicating our intent to
delay issuing the final Environmental Impact Statement and, thus, our
intent to delay identifying a preferred site for the facility. At the
same time, I respectfully repeat what I have said in previous
conversations on this matter which is, if the United States never
develops another nuclear weapon, a Modern Pit Facility will still be
required. I would welcome the opportunity to review my reasoning with
you or to arrange a briefing with your staff.
Finally, I want to make it absolutely clear that it was not my
intent to mislead the Committee, and I regret any inference you may
have drawn that I have done so. You and other members of the
Subcommittee have concerns with some of the approaches that the
Administration is advocating. Such disagreements are inherent in the
process of developing an overall U.S. position on these important
issues. I strongly support the President's program for nuclear
deterrence and believe that the proposals we have made in the nuclear
area are overwhelmingly in the national interest. But, I also
understand the importance of not misleading Congress. I regret that the
wording of my December 5, 2003, memorandum may have led to the
incorrect assumption that I had done so in this case. I have not. I
appreciate your bringing this matter to my attention and will ensure
that future correspondence does not lead to similar misunderstandings.
I would be happy to discuss any of these points with you personally
at your convenience. If you have any further questions, please feel
free to contact me or C. Anson Franklin, Director of Congressional and
Intergovernmental Affairs.
Sincerely,
Linton F. Brooks,
Administrator.
Ambassador Brooks. We intend to use Advanced Concepts funds
to investigate new ideas, not necessarily new weapons. For
example, with that portion of the Advanced Concepts money which
is not held in abeyance pending the Stockpile Plan, we will
begin to examine the feasibility of adapting an existing
nuclear weapon to provide a Cruise Missile capability that
involves enhanced safety and use control. We are also looking
at improving warhead design margins in order to ensure high
confidence in warhead reliability. We're also in discussion
with the Air Force on examining the utility of nuclear weapons
against chemical and biological agents, although we've made no
decisions to study this area. Specific uses of the proposed
2005 funds will be determined jointly with the Department of
Defense.
Perhaps the single most contentious issue in our budget is
continued funding for the Robust Nuclear Earth Penetrator
study. The study is to determine whether existing warheads,
either the B61 bomb or the B83 bomb, could be adapted without
nuclear testing to improve our ability to hold at risk hardened
and deeply buried facilities. I want to make several points
about this effort.
First, there's a clear military utility to this weapon. A
classified Defense Department report was submitted to the
Congress last year on this subject and remains valid.
Secondly, despite this obvious utility to the capability,
we will move beyond the study stage only if the President
approves and if funds are authorized and appropriated by
Congress. We included funds in our out-year projections only to
preserve the President's option. There won't be any decision
made until the study is completed. What we are asking the
Congress to do this year is approve the continuation of the
study. The law is extremely clear that beginning development
and engineering requires Congressional approval and there's no
one in the administration who has any doubt about that feature
of the law.
Finally, even if the study shows that it's feasible and the
President decides to pursue it and the Congress decides to fund
it, this weapon does not represent a change from our policy of
deterrence. Deterrence requires that we be able to hold at risk
something that an adversary values. Now, I refer you once again
to the classified report where we and the Department of Defense
speak in specific detail on the potential deterrent benefits of
this weapon.
As the Congress evaluates our request it's important to
understand that while there have been press accounts of
administration plans to develop low-yield weapons, there are no
such plans. Further, nothing we will do is intended to lower
the nuclear threshold or blur the distinction between nuclear
and non-nuclear weapons. Indeed, the intent of the Nuclear
Posture Review is to place greater emphasis on conventional
weapons rather than nuclear weapons.
I repeat, as I have said to this committee before, only the
President can authorize the use of nuclear weapons and no
President would make that decision except in the gravest of
circumstances.
DEFENSE NUCLEAR NONPROLIFERATION
Let me turn now to Defense Nuclear Nonproliferation. We're
asking for $1.35 billion to support activities to reduce the
global danger. We're not doing this alone; our G8 partners have
committed to spend $10 billion to help decrease the global
proliferation threat over the next 10 years. The largest
program in this area involves the disposition of surplus U.S.
and Russian plutonium. As you mentioned in your opening
statement, Mr. Chairman, one of the key obstacles we
encountered is a disagreement with Russia regarding liability
protection for plutonium disposition work performed in that
country. At the present time, this disagreement has resulted in
a 10-month delay in the start of construction of the Mixed
Oxide, or MOX, Fuel Facility in Russia as well as the facility
in the United States. This issue is being worked at the highest
levels of the administration; the President's 2005 budget
request supports construction of both MOX facilities starting
in May of next year and I am hopeful that we will resolve the
liability issue shortly, as soon as the new Russian government
is fully organized.
Senator Domenici. Who is your negotiator?
Ambassador Brooks. The Under Secretary of State for Arms
Control, John Bolton, has been the primary lead; the Secretary
of State has also been involved.
In addition to disposing of existing stocks of surplus
weapons-grade plutonium, we're working hard to stop more from
being produced by shutting down the last three plutonium
production reactors in Russia and replacing them with fossil
fuel plants. That will result in halting annual production of
about 1.2 metric tons of weapons-grade plutonium, roughly a
bomb a day. We are preparing preliminary designs for the fossil
fuel replacement plants, and validating cost estimates and we
expect to complete these designs by the end of the calendar
year, at which time we'll be able to provide the Congress with
revised and firm cost estimates.
Given recent threats to the United States, it has become
increasingly clear that protecting and securing nuclear
materials and detecting nuclear materials destined for the
United States at foreign ports, airports, and border crossings
is a high priority. Our budget request for material protection,
control, and accounting, which includes our Second Line of
Defense Program and our Mega-Ports Program, is $238 million. Of
that, $15 million will go toward moving ahead with our Mega-
Ports Program to train law enforcement officials and equip key
international ports with radiation detection equipment. We
expect to complete work at ports in Greece and The Netherlands
by late summer in 2004. In addition, also under Material
Protection, we have made a number of improvements in the
security of the Russian Nuclear Navy and are now focused on
improving security at Strategic Rocket Forces sites.
In fiscal year 2005, we will assume, NNSA will assume,
responsibility for the Off-site Source Recovery Project. The
requested program funding is $5.5 million, with a total cost of
about $40 million to substantially reduce the risk of source
materials within the United States being used for radiological
dispersion devices. And, we're working closely with the U.S.
Nuclear Regulatory Commission.
Our budget reflects our continued support for the
International Atomic Energy Agency and it reflects a renewed
emphasis on retrieving material with weapons potential from
research reactors worldwide. We've been working to secure
materials in Russia and Eurasia for over a decade and our
programs have now expanded worldwide. We've worked to return
both U.S.- and Russian-origin highly enriched uranium to
convert civilian reactor cores to use low-enriched uranium,
which is of less proliferation concern, and to secure and
remove vulnerable nuclear and radiological materials. Our
efforts are paying off. By the end of this year almost half of
the 98 targeted reactors will have been converted to use low-
enriched uranium fuel. In 2002, the Department assisted in the
removal of vulnerable nuclear material from Yugoslavia. In
2003, we helped return 17 kilograms of Russian-origin highly-
enriched uranium from Bulgaria, and 14 kilograms of Russian
highly-enriched uranium from Romania. We're now working with
Libya and have recently helped remove highly-enriched uranium
from that country as well. In Iraq, the Department is securing
and disposing of vulnerable radiological sources. To help
coordinate all this, last year we established a Nuclear and
Radiological Threat Reduction Task Force to combat the threat
posed by so-called dirty bombs. This task force is identifying
and securing high risk radiological materials and developing an
action plan to mitigate these vulnerabilities overseas.
Senator Domenici. Who will lead that committee?
Ambassador Brooks. Mr. Longsworth will be in overall
charge.
In all this we have strengthened the security of our Nation
and I believe we're making the world safer.
Senator Domenici. Mr. Ambassador, I know you have a lot to
say but you told us you were going to be brief.
Ambassador Brooks. Yes sir, I've got two more points to
make and then I'll quit, if I may.
Senator Domenici. All right.
Ambassador Brooks. I want to just mention safeguards and
security. That's one of Secretary Abraham's and my highest
priorities. Our request includes an increase over the past to
deal with the safeguards and security consequences of the
Design Basis Threat and I believe that we are well on track to
meet the Secretary's guidance to have improvements in place by
the end of next year.
PREPARED STATEMENT
Finally, let me just say that our budget is consistent with
the President's policy to reduce reliance on nuclear weapons.
It supports continued progress in certifying our nuclear
deterrent and reducing the danger from proliferation. And it
will enable us to continue to maintain the safety and security
of the stockpile through the 21st century.
This concludes my statement. After you've heard from
Admiral Bowman I'm ready for your questions, sir.
[The statement follows:]
Prepared Statement of Ambassador Linton F. Brooks
Thank you for the opportunity to discuss the Fiscal Year 2005
Budget Request for the National Nuclear Security Administration (NNSA).
This is my second appearance before this committee as the Under
Secretary for Nuclear Security, and I want to thank all of the Members
for their strong support for our important national security
responsibilities.
overview
The NNSA has four fundamental and unique responsibilities for U.S.
national security:
--Stewardship of the Nation's nuclear weapons stockpile,
--Reducing the threat posed by the proliferation of weapons of mass
destruction,
--Providing reliable and safe propulsion for the U.S. Navy,
--Management of the national nuclear security complex, which includes
both security for our facilities and materials to protect our
employees and our neighbors, and sustaining the facilities
infrastructure.
In the fourth year of this administration, with the strong support
of the Congress, the NNSA programs have achieved a level of stability
that is required for accomplishing our long-term missions. As the post-
Cold War era evolves, the NNSA is managing the Nation's nuclear
warheads according to the guidance in the Nuclear Posture Review. The
Department of Energy (DOE), through the NNSA, works to assure that the
Nation's nuclear weapons stockpile remains safe, secure, reliable, and
ready, and to extend the life of that stockpile in support of
Department of Defense (DOD) military requirements. Our Nation will
continue to benefit from the security that results from an effective
nuclear deterrent, with confidence that the nuclear weapons complex is
ready and prepared to respond rapidly and effectively if required.
Stockpile Stewardship activities are carried out without the use of
underground nuclear testing, continuing the moratorium initiated by the
United States in 1992. I am pleased with the continuing ability of the
Stockpile Stewardship Program to certify to the President, through the
Annual Certification Assessment Report, the safety, security, and
reliability of our nuclear weapons stockpile using science-based
judgments using cutting edge scientific and engineering tools as well
as extensive laboratory and flight tests. We are gaining a more
complete understanding of the stockpile each year. Computer codes and
platforms developed by our Advanced Simulation and Computing (ASCI)
program are now used routinely to address three-dimensional issues in
weapons performance, contributing to continuing certification, baseline
studies, as well as supporting the upcoming refurbishment workload.
The NNSA maintains a robust infrastructure of people, programs, and
facilities to provide specialized scientific and technical capability
for stewardship of the nuclear weapons stockpile. This past year, Los
Alamos National Laboratory manufactured the first certifiable W88 pit
since the closure of Rocky Flats in 1989. Los Alamos remains on-track
to certify a war reserve W88 pit by 2007. Also, in the past year, we
began the irradiation of Tritium Producing Burnable Absorber Rods in a
TVA reactor, restoring a key nuclear manufacturing technology. We also
continue our facilities recapitalization effort. There is a notable
improvement across the nuclear weapons complex, and NNSA is delivering
on our promise to the Congress to stabilize our deferred maintenance in
fiscal year 2005.
The Nation continues to benefit from advances in science,
technology and engineering fostered by the national security program
activities, including cutting edge research and development carried out
in partnership with many of the Nation's colleges, universities, small
businesses and minority educational institutions. The University of
Rochester's Omega laser is a key facility in NNSA's Inertial
Confinement Fusion program. It provides experimental capability for
Stockpile Stewardship as well as a user facility for training
tomorrow's scientists and engineers. Overall, the NNSA programs,
including three national laboratories, the Nevada Test Site, and the
production facilities across the United States employ nearly 2,300
Federal employees and approximately 35,000 contractor employees to
carry out this work.
In June 2002, the United States championed a new, comprehensive
nonproliferation effort known as the Global Partnership. World leaders
committed to raise up to $20 billion over 10 years to fund
nonproliferation programs in the former Soviet Union. The NNSA
contributes directly to this effort by carrying out programs with the
international community to reduce and prevent the proliferation of
nuclear weapons, materials and expertise. The security of our Nation
and the world are enhanced by NNSA's ongoing work to provide security
upgrades for military and civilian nuclear sites and enhanced border
security in Russia and the Former Soviet Union. In the past year, we
have completed comprehensive materials protection control and
accountability upgrades at 17 Russian nuclear facilities, and began
efforts to install security upgrades at vulnerable Russian Federation
Strategic Rocket Forces sites. With the support of the Congress, we are
implementing an aggressive Megaports initiative to enhance global
nuclear material detection at 15 major seaports shipping large volumes
of container traffic to the United States. We are reducing the world's
stocks of dangerous materials such as plutonium through NNSA-sponsored
Fissile Materials Disposition programs in the United States and Russia
as well as through elimination of Russian plutonium production.
The Nation benefits from NNSA's work in partnership with the
Department of Homeland Security to develop and demonstrate new
detection technologies to improve security of our cities. Perhaps the
most tangible benefits to the Nation following the 9/11 terrorist
attacks are the ``first responder teams'' of highly specialized
scientists and technical personnel from the NNSA sites who are deployed
across the Nation to address threats of weapons of mass destruction.
These teams work under the direction of the Department of Homeland
Security and the Federal Bureau of Investigation to respond to nuclear
emergencies in the United States and around the world. In the past
year, these teams have provided support to such diverse groups and
locations as New York City, Operation Iraqi Freedom, Olympic Planning
in Athens, and the Government of Thailand. Our teams have participated
in major training and exercise events in the United States and
overseas. They have developed new capabilities, including Triage, that
enables our first responders to rapidly determine if an item of
interest includes special nuclear material in yield-producing
quantities.
The NNSA also works in partnership with the DOD to meet their needs
for reliable and militarily effective nuclear propulsion for the U.S.
Navy. In the past year, the Naval Reactors Program has completed 99
percent of the reactor plant design for the VIRGINIA-class submarine,
and supported ``safe steaming'' of another 2 million miles by our
nuclear-powered ships. They have continued their unsurpassed record of
``clean up as you go'', including remediating to ``green grass'' the
former S1C prototype Site at Windsor, Connecticut, and completing a
successful demonstration of the interim naval spent fuel dry storage
capability in Idaho.
NNSA BUDGET SUMMARY
[In Millions of Dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Year Fiscal Year Fiscal Year
2003 2004 Fiscal Year 2004 Fiscal
Comparable Original 2004 Comparable Year 2005
Appropriation Appropriation Adjustments Appropriation Request
----------------------------------------------------------------------------------------------------------------
Office of the Administrator................ 330 340 -3 337 334
Weapons Activities......................... 5,961 6,273 -39 6,234 6,568
Defense Nuclear Nonproliferation........... 1,224 1,328 +6 1,334 1,349
Naval Reactors............................. 702 766 -4 762 798
--------------------------------------------------------------------
Total, NNSA.......................... 8,217 8,707 -40 8,667 9,049
----------------------------------------------------------------------------------------------------------------
The fiscal year 2005 budget request totals $9.0 billion, an
increase of $382 million or 4.4 percent. We are managing our program
activities within a disciplined 5-year budget and planning envelope. We
are doing it successfully enough to be able to address emerging new
priorities and provide for needed funding increases in some of our
programs within an overall modest growth rate--notably Safeguards and
Security, Nuclear Weapons Incident Response, and Facilities and
Infrastructure Recapitalization--by reallocating from other activities
and projects that are concluded or winding down.
The NNSA budget justification contains the required 3 years of
budget and performance information, as well as similar information for
5 years as required by Sec. 3253 of the NNSA Act, as amended (Title
XXXII of the National Defense Authorization Act for fiscal year 2000,
Public Law 106-65, 50 U.S.C. 2453). This section, entitled Future-Years
Nuclear Security Program, requires NNSA to provide to Congress each
year at the time the budget is submitted the estimated expenditures
necessary to support the programs, projects and activities of the NNSA
for a 5-fiscal-year period, in a level of detail comparable to that
contained in the budget. Since the inception of NNSA, the Future Years
Nuclear Security Program (FYNSP) has been provided as a separate
document supporting the budget request. Starting with this budget, NNSA
will meet this statutory requirement by including outyear budget and
performance information as part of a fully integrated budget
submission.
FUTURE YEARS NUCLEAR SECURITY PROGRAM (FYNSP)
[In Millions of Dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Fiscal Fiscal Fiscal Fiscal
Year Year Year Year Year Total
2005 2006 2007 2008 2009
----------------------------------------------------------------------------------------------------------------
Office of the Administrator............................... 334 340 347 353 360 1,734
Weapons Activities........................................ 6,568 6,881 7,216 7,353 7,492 35,510
Defense Nuclear Nonproliferation.......................... 1,349 1,381 1,410 1,441 1,465 7,046
Naval Reactors............................................ 798 803 818 834 850 4,103
-----------------------------------------------------
Total, NNSA......................................... 9,049 9,405 9,791 9,981 10,167 48,393
----------------------------------------------------------------------------------------------------------------
BUDGET AND PROGRAM HIGHLIGHTS
There are three areas of the NNSA budget where mission priorities
require us to request significant increases in funding for fiscal year
2005.
SAFEGUARDS AND SECURITY/DESIGN BASIS THREAT
Protecting NNSA people, information, materials, and infrastructure
from harm or compromise is one of our most serious responsibilities and
highest priorities. The fiscal year 2005 budget request for NNSA's
Safeguards and Security Program is $706.9 million, an increase of 21
percent over the fiscal year 2004 enacted level, that is needed to
implement a new Design Basis Threat (DBT) at all NNSA sites and
facilities. The Secretary of Energy issued the new DST in May 2003, as
a result of a post-September 11 analysis of the threats against which
we must protect DOE sites and materials across the country.
Implementation plans based on vulnerability assessments for each of the
sites are in final preparation. These will delineate the upgrades and
associated costs plan to upgrade service weaponry, extend explosive
impact zones, consolidate nuclear material, and make additional
improvements of a classified nature to bring NNSA facilities into full
compliance with the new DBT by the year 2006. The fiscal year 2005 NNSA
budget includes $107.9 million ($89.6 in Safeguards and Security and
$18.3 million in Secure Transportation Asset) to address the new DBT.
NNSA will shortly submit a request for fiscal year 2004 reprogramming
and appropriation transfer to allow this important work to continue on
schedule. The fiscal year 2006 funding request for DBT implementation
will be addressed during this spring's programming process.
In recent months we have had some highly publicized occurrences at
some NNSA sites. In each instance, NNSA and DOE have taken immediate
and aggressive actions to address these occurrences and to ensure that
any potential vulnerability is mitigated as soon as possible and that
longer term fixes are put into place as appropriate. Because of these
problems, we have chartered two external review groups to provide an
independent assessment of our management of security. While I am
confident that there has been no compromise of classified material and
that no nuclear material is at risk, I believe security can and should
be improved. The Secretary and I have both made it clear that we will
not tolerate any reduction, perceived or real, in our protective force
readiness or in our ability to protect the complex. Funding for
Safeguards and Security in NNSA has increased over 70 percent during
this administration, which is strong indicator of the priority we place
on this responsibility. The Secretary and I join together in making it
well known that we will not tolerate any reduction, perceived or real,
in our protective forces and our abilities to protect the complex.
FACILITIES AND INFRASTRUCTURE RECAPITALIZATION
The Facilities and Infrastructure Recapitalization Program (FIRP)
is essential to NNSA's ability to maintain a responsive robust
infrastructure. I am pleased to note that its mission and performance
is commended in the recent preliminary assessment by the National
Research Council on DOE's facility management. The fiscal year 2005
budget request for FIRP is $316.2 million. This increase follows a 2-
year period of flat funding. The request restores the program to our
previously requested FYNSP levels; it places the program back on our
previously planned schedule and reflects our commitment to fulfill the
direction of the Congress to end the program by 2011.
NUCLEAR WEAPONS INCIDENT RESPONSE
The third growth area in the fiscal year 2005 budget request is the
Nuclear Weapons Incident Response Programs. The fiscal year 2005
request of $99.2 million reflects an increase of 11 percent over the
fiscal year 2004 level, recognizing the greatly increased number of
deployments of these assets within the United States and abroad. The
long term sizing of this effort in terms of dollars and people
continues to evolve along with its critical role in homeland security.
We have relocated this account separately within the Weapons Activities
appropriation to provide additional visibility into these programs and
funding request.
At this time, I would like to focus on the remainder of the
President's budget request for NNSA Weapons Activities including
Defense Programs, Defense Nuclear Nonproliferation, Naval Reactors, and
the Office of the Administrator accounts.
WEAPONS ACTIVITIES
The fiscal year 2005 budget request for the programs funded within
the Weapons Activities appropriation is $6.568 billion, an increase of
5.4 percent over fiscal year 2004 due largely to the increase in
security and facilities infrastructure. Within Weapons Activities, the
budget structure has been changed in response to Congressional concerns
to align Directed Stockpile Work funding with individual weapon
systems, and to highlight Nuclear Weapon Incident Response as a
separate line.
The Nuclear Posture Review (NPR) guidance directed that NNSA
maintain a research and development and manufacturing base that ensures
the long-term effectiveness of the Nation's stockpile; and, support the
facilities and infrastructure that are responsive to new or emerging
threats. The NPR also directed NNSA to begin a modest effort to examine
concepts that could be deployed to further enhance the deterrent
capabilities of the stockpile in response to the national security
challenges of the 21st century.
The United States is continuing work to refurbish and extend the
life of the B61, W76 and W80 warheads in the stockpile. Within the
fiscal year 2005 request of $1.4 billion for Directed Stockpile Work
(DSW), funding for the life extension programs increases by 7 percent
to $477.4 million. This reflects the expected ramp up in the three
systems with First Production Units scheduled in fiscal year 2006-2009,
and the completion of life extension activities for the W87. In fiscal
year 2005, DSW funding will support research and development of
advanced weapon concepts to meet emerging DOD needs that will enhance
the nuclear deterrent, and to ensure a robust and capable NNSA for the
Future. The NPR highlighted the importance of pursuing advanced
concepts work to ensure that the weapons complex can provide nuclear
deterrence for decades to come. In fiscal year 2005, $9.0 million is
requested to support the modest research and development effort in the
Advanced Concepts Initiatives (ACI) to meet emerging DOD needs and to
train the next generation of nuclear weapons scientists and engineers.
The Robust Nuclear Earth Penetrator (RNEP) is the most mature concept
being studied in this program. Funds for the RNEP study are included in
the fiscal year 2005 budget as a separate line item from the rest of
the advanced concepts study activity. A request for $27.6 million is
also included for the continuing RNEP feasibility, design definition
and cost study. The RNEP study was requested by the Nuclear Weapons
Council in January 2002.
The RNEP study is to determine whether either of two existing
warheads--the B61 or the B83--can be adapted without resuming nuclear
testing to improve our ability to hold at risk hardened, deeply buried
facilities that may be important to a future adversary. The request for
advanced concepts funding is to investigate new ideas, not necessarily
new weapons. For example, we are currently examining the feasibility of
adapting an existing weapons carrier and existing nuclear warheads to
achieve a delivery system with greater assurance that the intended
nuclear mission could not be compromised by either component failure or
adversary attack, thus giving greater reliability for nuclear missions.
Appropriate uses for additional work in advanced concepts might include
examining the feasibility of warheads with improved design margins,
easier manufacturing, greater longevity and improved safety. Any of
these ideas would only be pursued for future development if directed to
do so by the President and the Congress.
Progress in other parts of the Stockpile Stewardship Program
continues. The fiscal year 2005 request for Campaigns is $2.4 billion,
essentially level with fiscal year 2004. This request funds a variety
of Campaigns, experimental facilities and activities that continue to
enhance NNSA's confidence in moving to ``science-based'' judgments for
stockpile stewardship, and provide cutting edge technologies for
stockpile certification and maintenance.
While there is no reason to doubt the ability of the Stockpile
Stewardship Program to continue to ensure the safety, security, and
reliability of the nuclear deterrent, the Nation must maintain the
ability to carry out a nuclear weapons test in the event of some
currently unforeseen problems that cannot be resolved by other means.
Within the guidance provided by the Congress, we are beginning to
improve our readiness posture from the current ability to test within
24 to 36 months to an ability to test within approximately 18 months.
The fiscal year 2005 budget request of $30 million supports achieving
an 18-month readiness by September 2005. But let me be clear, there are
no plans to test.
National Ignition Facility at Lawrence Livermore National
Laboratory (LLNL) remains on budget and schedule. The fiscal year 2005
request of $130.0 million continues construction installation and
commissioning of laser beams. Once complete in 2008, the 192-laser beam
facility will be capable of achieving temperatures and pressures found
only on the surface of the sun and in exploding nuclear weapons. We are
anticipating the first Stockpile Stewardship experiments in 2004 using
four laser beams. As a result of recent technical advances in capsule
design, target fabrication and computer simulations, we expect to begin
the fusion ignition campaign in fiscal year 2009 with a goal of
achieving fusion ignition in fiscal year 2010. The Advanced Simulation
and Computing Campaign request for fiscal year 2005 is $741.3 million,
an increase of nearly 3 percent over fiscal year 2004. Working with IBM
and Cray Research, the program expects delivery of Red Storm in fiscal
year 2004 and Purple in fiscal year 2005. These will be the world's
fastest machines, operating at 40 and 100 Teraops, respectively, and
they will continue to revolutionize supercomputer capabilities and
three-dimensional modeling. Having these machines on-line will begin to
redress the capacity and capability issues raised in the September 2003
JASONs report required by the Congress.
The NPR recognized a need, over the long run, for a Modern Pit
Facility (MPF) to support the pit manufacturing needs of the entire
stockpile. NNSA's fiscal year 2005 request for the Pit Manufacturing
Campaign is $336.5 million, an increase of 13 percent over fiscal year
2004, but with some changes since the last budget request. We delayed
the final environmental impact statement (EIS) for the MPF in order to
address Congressional concerns that it is premature to pursue further
decisions on an MPF at this time. The decision to delay the final EIS
also delays identification of a preferred site for constructing the
MPF.
This decision will in no way affect the W88 pit manufacturing and
recertification program underway at Los Alamos, which is reestablishing
the technological base to manufacture pits and which thereby will
inform many of the technology decisions which will be contained in the
eventual MPF design.
Readiness Campaigns are requested at $280.1 million in fiscal year
2005, a decrease of about 14 percent. The decrease is attributable
mainly to continuing progress in construction of the Tritium Extraction
Facility that is funded within this account.
NNSA's Readiness in Technical Base and Facilities activities
operate and maintain current facilities and ensure the long-term
vitality of the NNSA complex through a multi-year program of
infrastructure construction. About $1.5 billion is requested for these
efforts, a slight decrease from fiscal year 2004 that is attributable
to a 20 percent decline in funding needed to support line-item
construction project schedules. Three new construction starts are
requested.
In fiscal year 2005 the President's budget provides a total of
$201.3 million for the Office of Secure Transportation, which is
responsible for meeting the Department's transportation requirements
for nuclear weapons, components, special nuclear materials and waste
shipments.
The remainder of the Weapons Activities appropriation funding is
for Nuclear Weapons Incident Response, Facilities and Infrastructure
Recapitalization, and Safeguards and Security, discussed earlier in
this statement.
DEFENSE NUCLEAR NONPROLIFERATION
The Defense Nuclear Nonproliferation Program works to prevent the
spread of nuclear weapons and materials to terrorist organizations and
rogue states. The administration is requesting $1.35 billion to support
activities to reduce the global weapons of mass destruction
proliferation threat, about a 1 percent increase over comparable fiscal
year 2004 activities. This reflects a leveling off of growth in these
important programs that have increased over 60 percent in the past 4
years.
Given recent threats to the United States, it has become
increasingly clear that protecting and securing nuclear materials and
detecting nuclear and radioactive material at foreign ports, airports,
and border crossings is a very high priority. The administration's
leadership in the Global Partnership is one way that we are trying to
address these issues. The fiscal year 2005 request for programs
supporting the Partnership is $439 million. This includes a fiscal year
2005 request of $238 million for the International Nuclear Material
Protection and Cooperation (MPC&A) Program, which supports Second Line
of Defense activities and the Mega-ports Program. The Mega-ports
Program was jump-started with $99 million appropriated in fiscal year
2003. Progress is continuing, and with the $15 million requested in
fiscal year 2005, we will have work underway or complete at 9 of the 15
planned international ports. The $15 million in fiscal year 2005 is
requested to train law enforcement officials and equip key
international ports with radiation detection equipment to detect,
deter, and interdict illicit trafficking of nuclear and other
radioactive materials. We are scheduled to complete work at ports in
Greece and the Netherlands by the summer of 2004. We have made a number
of security improvements to Nuclear Navy sites in Russia and we are now
focusing resources on securing Strategic Rocket Forces sites. In
addition to this work, we are also pursuing a dialogue with countries
we believe are of particular concern. We hope that these activities
will lead to broader MPC&A cooperation in the coming years.
The largest activity funded by this appropriation is the Fissile
Materials Disposition program. We are working to design and build
facilities to dispose of inventories of surplus U.S. weapons-grade
plutonium and highly-enriched uranium, and supporting concurrent
efforts in Russia to obtain reciprocal disposition of similar
materials.
One of the key obstacles encountered this year is a disagreement
with Russia regarding liability protection for plutonium disposition
work performed in that country. This has resulted in a 10-month delay
in the planned start of construction of a MOX Facility in Russia as
well as a similar facility in the United States. The liability issue is
being worked at high levels of the administration. The President's
fiscal year 2005 budget request seeks $649 million for this program to
begin construction of both the U.S. and Russian MOX facilities in May
2005, as we work to resolve the liability issue by this spring. Our
outyear funding profiles reflect the administration's full commitment
for proceeding with plutonium disposition.
Not only are we pursuing the disposition of weapons-grade plutonium
but also we are working hard to stop more from being produced. NNSA has
assumed the responsibility from the DOD for shutting down the last
three plutonium production reactors in Russia and replacing them with
fossil fuel plants by 2008 and 2011. This will result in the cessation
of the annual production of 1.2 metric tons of weapons-grade plutonium.
Under the Elimination of Weapons-Grade Plutonium Production Program, we
have selected the Washington Group International and Raytheon Technical
Services to provide oversight for Russian contractors who will actually
be performing the work. The fiscal year 2005 request for this effort is
$50.1 million.
In fiscal year 2005, NNSA assumes responsibility for the Off-site
Source Recovery Project from the Office of Environmental Management.
The requested program funding is $5.6 million, with a projected cost of
about $40 million over the next 5 years to substantially reduce the
risk of these source materials being used for radiological dispersion
devices. The program works closely with the U.S. Nuclear Regulatory
Commission to prioritize source recovery.
The Russian reactor safety efforts under the International Nuclear
Safety Program were completed successfully in 2003. The remaining $4
million for emergency management and cooperation efforts was shifted to
the Nonproliferation and International Security Program. These funds
provide for the orderly shutdown of the BN 350 reactor in Kazakhstan
($1.5 million) and continue activities to strengthen international
emergency cooperation and communications ($2.5 million). The
Accelerated Materials Disposition initiative was not supported by the
Congress in fiscal year 2004 and in consideration of overall NNSA
priorities, is not requested in the fiscal year 2005 budget or
outyears.
NAVAL REACTORS
The NNSA is requesting $798 million for the Naval Reactors Program
in fiscal year 2005, an increase of about 4 percent. This program
continues to be a prime example of how to manage unforgiving and
complex technology. The Naval Reactors Program provides safe and
reliable nuclear reactors to power the Navy's warships. It is
responsible for all naval nuclear propulsion work, beginning with
technology development, through reactor operations, and ultimately to
reactor plant disposal. The budget increase will support 70 percent
completion of the design of the next generation nuclear reactor on an
aircraft carrier, and continue work on the Transformational Technology
Core, which will deliver a significant energy increase to future
submarines, resulting in greater operational ability and flexibility.
The request includes $6.2 million for a new construction start, the
Materials Development Facility Building, in Schenectady, NY. The TTC
facility is estimated at $20.4 million, and it is expected to be
completed in 2008.
OFFICE OF THE ADMINISTRATOR
NNSA is in the final implementation phase of a re-engineering
effort that follows the principles of the President's Management Agenda
to modernize, integrate, and streamline operations. As a result, at the
end of fiscal year 2004, NNSA will achieve its goal of a 15 percent
reduction in Federal personnel since fiscal year 2002. It is likely
that the Congress will receive a request for reprogramming in fiscal
year 2004 to fund the remainder of these realignment and reengineering
activities.
The fiscal year 2005 budget request of $333.7 million is about 1
percent below the fiscal year 2004 appropriation. This reflects cost
avoidance due to reduction of about 300 positions since 2002, and no
further request for incremental funding needed to accomplish re-
engineering in NNSA HQ and field organizations. The budget request
assumes that personnel reductions are achieved, restructuring finished,
and associated employee transfers are complete at the end of fiscal
year 2004.
The Defense Nuclear Nonproliferation (NN) and Nuclear Weapons
Incident Response programs have been excluded from staff reductions due
to increased program requirements in those areas. NNSA is not
requesting a separate funding control for the Office of Defense Nuclear
Nonproliferation because it is no longer necessary to assure that
Federal hiring goals are met for these activities that are experiencing
rapid mission growth. Based on hiring to date in fiscal year 2004, it
is projected that this organization will meet or exceed its managed
staffing plan goal of 244 by fiscal year 2005. A single funding control
for the appropriation is necessary to facilitate NNSA's corporate
efforts to rebalance the NN's office transition from reliance on
support service contractors to permanent Federal staff.
MANAGEMENT ISSUES
I would like to conclude by discussing some of NNSA's management
challenges and successes. We are all aware of the management
difficulties that beset the weapons laboratories last year. The
contractors and NNSA/DOE have made many changes to the laboratories'
management and reporting/oversight requirements in response to the
problems. Soon their contracts are coming up for renewal. Secretary
Abraham has outlined the Department's strategy for competing the
Management and Operating contracts for our nuclear design labs in
accordance with Section 301 of the Energy and Water Development
Appropriations Act, Fiscal Year 2004 (Public Law 108-137). On April 30,
2003, the Secretary announced that we intend to compete the Los Alamos
National Laboratory contract on a full and open basis to have a
contract in place by September 30, 2005, when the old contract expires.
On January 21, 2004, the Secretary reiterated his decision
concerning Los Alamos National Laboratory. At that time, he also
announced his decision to compete the Lawrence Livermore National
Laboratory contract, as well as three other DOE laboratories, but
indicated that the precise timing and form of these competitions were
under consideration.
NNSA, with the concurrence of the Secretary, is establishing a
Source Evaluation Board (SEB) for the Los Alamos competition. I have
named Tyler Przybylek as the Chairman of that SEB and he is in the
process of identifying members and advisers to the SEB. We see no
obstacle to meeting the Secretary's schedule for competing and awarding
a new contract or managing Los Alamos.
On the ``success'' side, I am proud that the Department of Energy
was ranked first among cabinet-level agencies in the most recent
scorecard to assess implementation of the President's Management
Agenda. The scorecard, which evaluates agency performance in the areas
of human capital, competitive sourcing, financial management, e-
Government, and budget/performance integration, was issued by OMB. We
at NNSA take very seriously the responsibility to manage the resources
of the American people effectively and I am glad that our management
efforts are achieving such results.
CONCLUSION
In conclusion, I am confident that we are headed in the right
direction. Our budget request will support continuing our progress in
protecting and certifying our nuclear deterrent, reducing the global
danger from proliferation and weapons of mass destruction, and
enhancing the force projection capabilities of the U.S. nuclear Navy.
It will enable us to continue to maintain the safety and security of
our people, information, materials, and infrastructure. Above all, it
will meet the national security needs of the United States of the 21st
century.
Mr. Chairman, this concludes my statement. A statistical appendix
follows that contains the budget figures supporting our request. My
colleagues and I would be pleased to answer any questions on the
justification for the requested budget.
NATIONAL NUCLEAR SECURITY ADMINISTRATION APPROPRIATION AND PROGRAM SUMMARY
[In Millions of Dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Year Fiscal Year Fiscal Year
2003 2004 Fiscal Year 2004 Fiscal
Comparable Original 2004 Comparable Year 2005
Appropriation Appropriation Adjustments Appropriation Request
----------------------------------------------------------------------------------------------------------------
Office of the Administrator............... 330 340 -3 337 334
Weapons Activities........................ 5,961 6,273 -39 6,234 6,568
Defense Nuclear Nonproliferation.......... 1,224 1,328 +6 1,334 1,349
Naval Reactors............................ 702 766 -4 762 798
---------------------------------------------------------------------
Total, NNSA......................... 8,217 8,707 -40 8,667 9,049
----------------------------------------------------------------------------------------------------------------
FUTURE YEARS NUCLEAR SECURITY PROGRAM (FYNSP) SCHEDULE
[In Millions of Dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Fiscal Fiscal Fiscal Fiscal
Year Year Year Year Year Total
2005 2006 2007 2008 2009
----------------------------------------------------------------------------------------------------------------
Office of the Administrator............................... 334 340 347 353 360 1,734
Weapons Activities........................................ 6,568 6,881 7,216 7,353 7,492 35,510
Defense Nuclear Nonproliferation.......................... 1,349 1,381 1,410 1,441 1,465 7,046
Naval Reactors............................................ 798 803 818 834 850 4,103
-----------------------------------------------------
Total, NNSA......................................... 9,049 9,405 9,791 9,981 10,167 48,393
----------------------------------------------------------------------------------------------------------------
WEAPONS ACTIVITIES APPROPRIATION
[In Thousands of Dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Year Fiscal Year Fiscal Year
2003 2004 Fiscal Year 2004 Fiscal Year
Comparable Original 2004 Comparable 2005
Appropriation Appropriation Adjustments Appropriation Request
----------------------------------------------------------------------------------------------------------------
Weapons Activities:
Directed Stockpile Work.............. 1,259,136 1,340,286 -13,630 1,326,656 1,406,435
Science Campaign..................... 260,867 250,548 +23,300 273,848 300,962
Engineering Campaign................. 270,502 344,387 -79,472 264,915 242,984
Inertial Confinement Fusion and High 499,230 517,269 -3,018 514,251 492,034
Yield Campaign......................
Advanced Simulation and Computing 674,453 725,626 -4,250 721,376 741,260
Campaign............................
Pit Manufacturing and Certification 261,807 298,528 -1,738 296,790 336,473
Campaign............................
Readiness Campaign................... 270,147 247,097 +81,819 328,916 280,127
Readiness in Technical Base and 1,480,872 1,664,235 -123,590 1,540,645 1,474,454
Facilities..........................
Secure Transportation Asset.......... 168,548 162,400 -948 161,452 201,300
Nuclear Weapons Incident Response.... 81,114 0 +89,167 89,167 99,209
Facilities and Infrastructure 235,474 240,123 -1,368 238,755 316,224
Recapitalization Program............
Safeguards & Security................ 558,161 585,750 -3,280 582,470 706,991
----------------------------------------------------------------------
Subtotal, Weapons Activities....... 6,020,311 6,376,249 -37,008 6,339,241 6,598,453
Use of Prior Year Balances........... -29,981 -74,753 -2,000 -76,753 0
Security Charge for Reimbursable Work -28,985 -28,985 +0 -28,985 -30,000
----------------------------------------------------------------------
Total, Weapons Activities.......... 5,961,345 6,272,511 -39,008 6,233,503 6,568,453
----------------------------------------------------------------------------------------------------------------
DEFENSE NUCLEAR NONPROLIFERATION APPROPRIATION
[In Thousands of Dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Year Fiscal Year Fiscal Year
2003 2004 Fiscal Year 2004 Fiscal
Comparable Original 2004 Comparable Year 2005
Appropriation Appropriation Adjustments Appropriation Request
----------------------------------------------------------------------------------------------------------------
Defense Nuclear Nonproliferation:
Nonproliferation and Verification 256,092 231,997 0 231,997 220,000
Research and Development..............
Nonproliferation and International 130,873 110,107 +3,977 114,084 124,000
Security..............................
International Nuclear Materials 333,029 258,487 0 258,487 238,000
Protection and Cooperation............
Russian Transition Initiatives......... 39,081 39,764 0 39,764 41,000
HEU Transparency Implementation........ 17,118 17,894 0 17,894 20,950
International Nuclear Safety........... 33,570 3,977 -3,977 0 0
Elimination of Weapons-Grade Plutonium 49,221 49,735 +15,300 65,035 50,097
Production............................
Accelerated Material Disposition....... 894 0 0 0 0
Fissile Materials Disposition.......... 445,528 652,818 0 652,818 649,000
Offsite Source Recovery Project........ 2,172 0 +1,961 1,961 5,600
--------------------------------------------------------------------
Subtotal, Defense Nuclear 1,307,578 1,364,779 +17,261 1,382,040 1,348,647
Nonproliferation....................
Use of Prior Year Balances............. -84,125 -45,000 -3,000 -48,000 .........
--------------------------------------------------------------------
Total, Defense Nuclear 1,223,453 1,319,779 +14,261 1,334,040 1,348,647
Nonproliferation....................
----------------------------------------------------------------------------------------------------------------
NAVAL REACTORS APPROPRIATION
[In Thousands of Dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Year Fiscal Year Fiscal Year
2003 2004 Fiscal Year 2004 Fiscal
Comparable Original 2004 Comparable Year 2005
Appropriation Appropriation Adjustments Appropriation Request
----------------------------------------------------------------------------------------------------------------
Naval Reactors Development (NRD):
Operations and Maintenance............. 666,927 723,100 -4,264 718,836 761,211
Program Direction...................... 24,043 26,700 -148 26,552 29,500
Construction........................... 11,226 18,600 -110 18,490 7,189
--------------------------------------------------------------------
Subtotal, Naval Reactors Development. 702,196 768,400 -4,522 763,878 797,900
Less Use of prior year balances........ 0 -2,000 ........... -2,000 0
Subtotal Adjustments................... 0 0 0 0 0
--------------------------------------------------------------------
Total, Naval Reactors................ 702,196 766,400 -4,522 761,878 797,900
----------------------------------------------------------------------------------------------------------------
OFFICE OF THE ADMINISTRATOR APPROPRIATION
[In Thousands of Dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Year Fiscal Year Fiscal Year
2003 2004 Fiscal Year 2004 Fiscal
Comparable Original 2004 Comparable Year 2005
Appropriation Appropriation Adjustments Appropriation Request
----------------------------------------------------------------------------------------------------------------
Office of the Administrator Program 330,314 339,980 -3,154 336,826 333,700
Direction.................................
----------------------------------------------------------------------------------------------------------------
FUNDING BY GENERAL GOAL
[Dollars in Millions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fiscal Fiscal Fiscal Percent Fiscal Fiscal Year Fiscal Year Fiscal Year
Year 2003 Year 2004 Year 2005 $ Change Change Year 2006 2007 2008 2009
--------------------------------------------------------------------------------------------------------------------------------------------------------
General Goal 1, Nuclear Weapons
Stewardship:
Directed Stockpile Work.............. $1,259 $1,327 $1,406 +$79 +6.0 $1,521 $1,648 $1,778 $1,812
Science Campaign..................... 261 274 301 +27 +9.9 301 308 328 341
Engineering Campaign................. 271 265 243 -22 -8.3 268 226 284 237
ICF and High Yield Campaign.......... 499 514 492 -22 -4.3 521 535 437 441
Advanced Simulation and Computing 674 721 741 +20 +2.8 782 826 834 848
Campaign............................
Pit Manufacturing and Certification 262 297 336 +39 +13.1 324 314 155 158
Campaign............................
Readiness Campaign................... 270 329 280 -49 -14.9 331 307 357 376
Readiness in Technical Base and 1,481 1,541 1,474 -67 -4.3 1,600 1,753 1,839 1,916
Facilities..........................
Nuclear Weapons Incident Response.... 81 89 99 +10 +11.2 100 101 98 101
Secure Transportation Asset.......... 169 161 201 +40 +24.8 185 186 190 195
Facilities and Infrastructure 235 239 316 +77 +32.2 373 426 472 476
Recapitalization Program............
Safeguards and Security.............. 529 553 677 +124 +22.4 575 586 580 591
Office of the Administrator.......... 279 283 277 -6 -2.1 282 288 293 299
Use of PY Balances................... -30 -77 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------------------
Total Goal 1, Nuclear Weapons 6,237 6,513 6,845 +332 +5.1 7,163 7,504 7,646 7,791
Stewardship.......................
==============================================================================================================
General Goal 2, Control of Weapons of
Mass Destruction:
Nonproliferation and Verification 256 232 220 -12 -5.2 229 235 246 248
Research & Development..............
Nonproliferation and International 131 114 124 +10 +8.8 119 120 120 120
Security............................
International Nuclear Material 333 258 238 -20 -7.8 244 250 258 260
Protection and Cooperation..........
Russian Transition Initiative........ 39 40 41 +1 +2.5 42 43 43 44
HEU Transparency Implementation...... 17 18 21 +3 +16.7 21 21 20 20
International Nuclear Safety......... 34 0 0 0 0 0 0 0 0
Elimination of Weapons-Grade 49 65 50 -15 -23.1 56 59 60 67
Plutonium Production................
Accelerated Materials Disposition.... 1 0 0 0 0 0 0 0 0
Fissile Materials Disposition........ 382 653 649 -4 -0.6 661 673 685 697
Offsite Source Recovery Project...... 2 2 6 +4 +200.0 9 9 9 9
Office of the Administrator.......... 54 57 57 0 0 58 59 60 61
Use of PY Balances................... -20 -48 0 .......... .......... 0 0 0 0
--------------------------------------------------------------------------------------------------------------
Total Goal 2, Control of Weapons of 1,278 1,391 1,406 +15 +1.0 1,439 1,469 1,501 1,526
Mass Destruction..................
==============================================================================================================
Goal 3, Defense Nuclear Power (Naval 702 762 798 +36 +4.7 803 818 834 850
Reactors)...............................
==============================================================================================================
Total, NNSA........................ 8,217 8,667 9,049 +382 +4.4 9,405 9,791 9,981 10,167
--------------------------------------------------------------------------------------------------------------------------------------------------------
NNSA Program Direction expenditures funded in the Office of the Administrator appropriation have been allocated in support of Goals 1 and 2. Goal 1
allocation includes Federal support for programs funded by the Weapons Activities appropriation, as well as NNSA corporate support, including Federal
staffing at the site offices. Goal 2 allocation includes Federal support for all Nuclear Nonproliferation programs. Program Direction expenditures for
Naval Reactors, supporting Goal 3, are funded within the Naval Reactors appropriation.
FUNDING SUMMARY BY SITE
[In Millions of Dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fiscal Year Fiscal Year
Fiscal Year Fiscal Year 2005 Office Fiscal Year 2005 Fiscal Year Total
2003 2004 of the 2005 Weapon Nuclear 2005 Naval Fiscal Year
Admin Activities Nonprolif React 2005
--------------------------------------------------------------------------------------------------------------------------------------------------------
Chicago Operations Office:
Ames Laboratory.......................................... 0.2 0.2 ........... ........... 0.2 ........... 0.2
Argonne Nat. Laboratory.................................. 24.7 19.2 ........... 1.9 20.5 ........... 22.4
Brookhaven National Laboratory........................... 25.4 44.5 ........... 1.6 33.3 ........... 34.9
Chicago Operations Office................................ 209.5 428.4 ........... 25.2 446.3 ........... 471.5
New Brunswick Laboratory................................. 1.5 1.1 ........... ........... 1.1 ........... 1.1
Idaho Operations Office:
Idaho National Laboratory................................ 59.5 58.0 ........... ........... 2.0 56.0 58.0
Idaho Operations Office.................................. 1.4 1.1 ........... 1.4 ........... ........... 1.4
Kansas City Site Office:
Kansas City Plant........................................ 390.3 403.8 ........... 378.0 1.4 ........... 379.5
Kansas City Site Office.................................. 6.2 6.2 6.0 ........... ........... ........... 6.0
Livermore Site Office:
Lawrence Livermore National Laboratory................... 1,048.7 1,004.1 ........... 963.3 70.4 ........... 1,033.7
Livermore Site Office.................................... 12.8 16.1 16.5 ........... ........... ........... 16.5
Los Alamos Site Office:
Los Alamos National Laboratory........................... 1,410.0 1,415.6 ........... 1,395.6 123.6 ........... 1,519.2
Los Alamos Site Office................................... 12.0 14.6 15.9 ........... ........... ........... 15.9
National Engineering Technology Laboratory................... 1.7 0.0 ........... ........... ........... ........... 0.0
NNSA Service Center:
Atomic Energy of Canada, Ltd............................. 2.4 1.2 ........... ........... 1.2 ........... 1.2
General Atomics.......................................... 10.8 11.0 ........... 13.1 0.2 ........... 13.3
Lawrence Berkeley National Laboratory.................... 5.2 4.0 ........... ........... 4.1 ........... 4.1
Naval Research Laboratory................................ 22.3 13.3 ........... 11.0 ........... ........... 11.0
NNSA Service Center (all other sites).................... 487.8 467.2 98.7 232.2 83.4 ........... 414.4
Nonproliferation and National Security Institute......... 0.1 ........... ........... ........... ........... ........... ...........
University of Rochester/LLE.............................. 46.8 62.6 ........... 45.5 ........... ........... 45.5
Nevada Site Office:
Nevada Site Office....................................... 104.1 92.5 17.5 45.7 7.4 ........... 70.6
Nevada Test Site......................................... 247.7 285.4 ........... 282.9 1.0 ........... 283.9
Oak Ridge Operations Office:
Oak Ridge Institute for Science and Engineering.......... 7.8 8.8 ........... 7.1 ........... ........... 7.1
Oak Ridge National Laboratory............................ 110.6 95.8 ........... 7.5 136.9 ........... 144.4
Office of Science and Technical Information.............. 0.1 0.1 ........... 0.1 ........... ........... 0.1
Y-12 Site Office......................................... 9.6 16.3 11.7 ........... ........... ........... 11.7
Y-12 National Security Complex........................... 734.3 728.2 ........... 727.0 61.0 ........... 788.0
Pantex Site Office:
Pantex Plant............................................. 413.0 431.1 ........... 463.5 10.3 ........... 473.8
Pantex Site Office....................................... 9.9 10.8 11.6 ........... ........... ........... 11.6
Pittsburgh Naval Reactors Office:
Bettis Atomic Power Laboratory........................... 351.6 396.2 ........... ........... ........... 401.2 401.2
Pittsburgh Naval Reactors Office......................... 7.8 8.2 ........... ........... ........... 8.7 8.7
Richland Operations Office:
Richland Operations Office............................... 0.4 0.8 ........... 1.3 ........... ........... 1.3
Pacific Northwest National Laboratory.................... 132.5 85.6 ........... 4.4 70.1 ........... 74.5
Sandia Site Office:
Sandia National Laboratories............................. 1,306.8 1,376.7 ........... 1,167.7 144.3 ........... 1,312.0
Sandia Site Office....................................... 8.6 12.1 12.5 ........... ........... ........... 12.5
Savannah River Operations Office:
Savannah River Operations Office......................... 14.0 26.5 ........... ........... 32.4 ........... 32.4
Savannah River Site Office............................... 3.5 3.1 2.9 ........... ........... ........... 2.9
Savannah River Site...................................... 305.3 303.3 ........... 238.9 55.5 ........... 294.4
Schenectady Naval Reactors Office:
Knolls Atomic Power Laboratory........................... 269.5 282.0 ........... ........... ........... 308.2 308.2
Schenectady Naval Reactors Office........................ 6.3 6.7 ........... ........... ........... 7.0 7.0
Washington DC Headquarters................................... 501.3 688.2 137.9 577.5 41.9 13.8 771.1
Other........................................................ 5.7 7.0 2.4 ........... ........... 3.0 5.4
------------------------------------------------------------------------------------------
Subtotal, NNSA......................................... 8,360.4 8,842.0 333.7 6,598.5 1,348.6 768.4 9,078.7
Adjustments.................................................. -143.5 -176.2 0.0 -30.0 0.0 0.0 -30.0
------------------------------------------------------------------------------------------
Total, NNSA............................................ 8,216.9 8,665.8 333.7 6,568.5 1,348.6 768.4 9,048.7
--------------------------------------------------------------------------------------------------------------------------------------------------------
STATEMENT OF ADMIRAL FRANK L. BOWMAN
Senator Domenici. Thank you very much. Are you next,
Admiral?
Admiral Bowman. Yes sir.
Senator Domenici. Please proceed.
Admiral Bowman. Mr. Chairman and members of the committee,
thank you very much for the opportunity to testify, as you
said, Mr. Chairman, maybe one last time before this committee
in my last 8 years as Director of Naval Reactors.
Sir, with your permission I would like to submit a detailed
statement for the record.
Senator Domenici. Please do.
Admiral Bowman. And also the normal environmental,
radiation and occupational safety health reports.
[Clerk's Note.--The reports referenced above will be
retained in committee files.]
Admiral Bowman. Let me begin by thanking you and the
committee for the support you've continued to provide the Naval
Nuclear Propulsion Program, and Senator Domenici, especially,
on a personal note, your support of me and my program for these
years. Many of the impressive capabilities of our nuclear-
powered ships were developed with funding that was supported by
you. As you know, nuclear propulsion provides the mobility, the
flexibility and the endurance that today's Navy needs to meet a
growing number of important missions with fewer and fewer
ships.
Today our 10 nuclear-powered aircraft carriers continue to
be the centerpiece of U.S. military presence worldwide in
support of our interests and commitments. In war they deliver
strike sorties, protect friendly forces and engage in sustained
combat operations.
Our 54 operational attack submarines are the envy of navies
around the world. Because of their stealth, endurance,
mobility, firepower and multi-mission flexibility they
guarantee access to the world's oceans and littorals, monitor
those who may act counter to our interests and conduct
reconnaissance in preparation for conflict. In the event of
hostilities they conduct Tomahawk strike missions, deploy and
support special operations forces, and destroy enemy ships and
diesel submarines.
Our 14 Trident ballistic missile submarines, down from 18
as a result of the last NPR, are the most survivable and
efficient leg of our strategic deterrent arsenal and continue
to represent a cornerstone of our national security.
And then finally, the deep-diving, nuclear-powered research
submarine, NR-1, provides unique military mission support to
the Navy and valuable oceanographic research to the scientific
community.
When I testified before this committee last year, Mr.
Chairman, our Armed Forces had been engaged in Operation Iraqi
Freedom for 3 weeks. I reported then that our nuclear-powered
warships were playing a leading role in combat operations. My
written, detailed statement reports more details of the superb
performance of our ships and their crews. Today our nuclear-
powered fleet is deployed around the world, protecting our
interests, deterring aggression and continuing to fight
terrorism. At the center of this new surge Navy, our nuclear-
powered warships are ready for any and all missions our
Nation's leaders may direct.
As we look to the near future, the first of the Virginia-
class attack submarines will be delivered this summer,
remarkably close to the schedule established over a decade ago.
You recall that the operational requirements document for that
Virginia-class was approved some 4 years after the fall of the
Berlin Wall. As such, the Virginia-class is the first submarine
designed specifically for post-Cold War missions. It's designed
to prevail in both the littorals and the open ocean.
Our work also continues on the design of the nuclear
propulsion plant for the CVN-21, the next generation class of
aircraft carriers. The modern technologies of this design will
enable increased war fighting capability and operational
availability with lower life cycle costs.
We're also continuing work on the Transformational
Technology Core (TTC). It will use new core materials, new
reactor materials, to achieve a greater energy density, more
energy in the reactor without increasing the size, weight or
space and at a reasonable cost for future Virginia-class
submarines. That TTC core is a direct outgrowth of the Programs
advanced reactor technology work, funded by this committee. It
will also be a stepping stone for future reactor development.
Though new designs are important, Naval Reactors' number
one priority is ensuring that the men and women at sea
defending our Nation are operating safe, effective and reliable
nuclear propulsion plants. Most of Naval Reactors' funding is
devoted to this.
With your vital support, I'm confident we will continue to
build on our success. Naval Reactors' fiscal year 2005 DOE
budget request is for about $798 million, an increase of 3
percent after inflation compared to fiscal year 2004. The
funding increase mainly supports the continued development of
the Transformational Technology Core.
PREPARED STATEMENT
Mr. Chairman, as the Director of Naval Reactors for the
last 7\1/2\ years, I can assure you that the ongoing support of
your committee is one of the most important factors in our
success story. The unique capabilities inherent in nuclear
power have played a vital role in our Nation's defense over the
past 50 years. This legacy is as strong and vibrant today as
ever. Our Navy continues to face a growing need for power
projection and forward presence far from home, which places
even greater demands on our nuclear fleet. With your continued
support Naval Reactors' success will continue far into the
future. Our record is strong, the work is important, and the
funding needs have been very carefully scrubbed by me
personally.
Mr. Chairman, other members of the committee, I thank you
very much for your continued support.
[The statement follows:]
Prepared Statement of Admiral Frank L. Bowman
Thank you for inviting me to testify today on Naval Reactors'
Fiscal Year 2005 Department of Energy/National Nuclear Security
Administration budget request in what will be my last of 8 years as
Director, Naval Reactors.
Let me also thank you for the faith you continue to demonstrate in
the Naval Reactors Program. Through your steadfast support, our nuclear
fleet remains deployed around the world today, prosecuting the Global
War on Terrorism while protecting our interests and deterring
aggression. Nuclear propulsion continues to prove itself essential by
providing the flexibility, speed, endurance, and multimission
capability required for the United States Navy to meet its global
commitments. The nuclear propulsion plants, developed with funding
supported by this subcommittee, enable many of the impressive
capabilities our nuclear-powered ships possess. Let me begin by
discussing the capabilities and accomplishments of the nuclear-powered
Fleet--the Program's principal product.
TODAY'S NUCLEAR-POWERED FLEET
Our nuclear fleet includes 10 of our Nation's 12 aircraft carriers,
each of them providing 4\1/2\ acres of sovereign U.S. territory from
which we can rapidly begin and sustain continuous combat operations,
without having to negotiate basing rights on--and overflight rights
across--foreign soil. Nuclear power enhances the capability of these
warships to surge and to sprint where needed and arrive on station
ready for round-the-clock power projection and other combat operations.
Sustained high-speed capability enables a rapid response to world
circumstances, giving the Combatant Commanders the ability to surge
these ships from one crisis to the next without dependence on slower
fleet tankers.
Our 54 operational attack submarines (SSN's) possess the inherent
characteristics of stealth, endurance, mobility, firepower, and
multimission flexibility. They provide guaranteed access to the world's
oceans and littorals, monitor those who may act counter to our
interests, and conduct reconnaissance in preparation for conflict. Our
SSN's can covertly monitor an adversary's actions without the risk of
political or military escalation--a particularly valuable capability
since adversaries understand and can sometimes avoid other methods of
reconnaissance. If tensions escalate, these SSN's can provide Tomahawk
strikes or deliver special operations forces from their undisclosed
locations without warning, inside an adversary's defensive umbrella.
Our ``high-tech'' SSN's make our Navy the envy of other navies
throughout the world.
This summer, the Navy will deliver the first-of-the-class USS
VIRGINIA to the Fleet, close to the shipyard's schedule that was
established over a decade ago. Float-off and christening occurred in
August 2003 and the reactor was taken critical for the first time on
January 27, 2004. Final construction work is being completed, and
shipboard acceptance testing is ongoing. When the reactor went critical
for the first time, the actual control rod position was virtually the
same as predicted by our analysis over 6 years ago--within 0.2 percent.
The VIRGINIA Class Operational Requirements Document, approved in
September 1993, called for the ship to be the first nuclear-powered
submarine designed for post-Cold War missions. Specifically, VIRGINIA
is built to dominate the littorals without sacrificing undersea
dominance in the open ocean. In a single platform, the VIRGINIA class
will combine a unique mix of stealth, endurance, agility, and firepower
to fulfill vital national security roles, even in areas denied to other
U.S. assets. There are nine follow-on VIRGINIA-class submarines under
contract, five of which are in the multiyear contract authorized by
Congress last year.
The remaining ships in the nuclear fleet include 14 strategic
ballistic missile submarines (SSBN's), four former SSBN's being
converted to guided missile/multimission submarines (SSGN's), and one
deep submergence vehicle (NR-1). Our 14 TRIDENT ballistic missile
submarines are the survivable leg of our strategic deterrent arsenal
and therefore provide the cornerstones of our national security at the
lowest cost. The four TRIDENT submarines now undergoing conversion to
SSGN's will exploit the submarine's tremendous mission volume and 22
large interfaces with the sea to deploy futuristic payloads and special
operations forces. These multi-mission stealth platforms will provide
the combatant commanders with littoral warfare and land-attack
capabilities that will be truly transformational. The deep-diving,
nuclear-powered research submarine NR-1 provides unique military
mission support to the Navy and valuable oceanographic research to the
scientific community.
Now I'd like to discuss our work in a little more detail. Naval
Reactors' No. 1 priority has always been and continues to be providing
safe, effective, and reliable nuclear propulsion to the men and women
who are at sea, defending our national interests. Most of our funding
goes to that purpose.
Today, Naval Reactors supports 104 reactor plants (one more than
the number of commercial reactors in the United States) in 83 nuclear-
powered warships, the NR-1, and 4 training and test reactor plants. The
ships are welcomed in more than 150 ports of call in more than 50
countries. In all, we have operated safely for more than 5,500 reactor
years and steamed over 130 million miles.
Naval Reactors' technical support for these ships is more important
than ever. Today, the average age of a nuclear-powered warship in our
Navy is 18 years, but it will increase to more than 24 by 2012. As
these ships age, the technical work necessary to maintain their
performance places a greater demand on Naval Reactors' DOE budgets.
This challenge is my primary concern. As I said earlier, your support
remains vital, and I am confident we will continue to build on our
successes.
On March 8 of this year, the Secretary of Energy assigned to Naval
Reactors a project to develop, design, deliver, and operationally
support a civilian nuclear reactor for space exploration missions under
NASA's Project Prometheus. Since this work is exclusive of our core
naval nuclear propulsion work and is assigned as a DOE civilian project
to NR, NASA will budget for and fund this work throughout the effort.
Our initial work will begin this year to establish a working
relationship with our new partners at NASA and to define the elements
of the reactor design.
FISCAL YEAR 2005 DEPARTMENT OF ENERGY BUDGET REQUEST
Naval Reactors' fiscal year 2005 DOE budget request is $797.9
million, an increase of about 3 percent (after inflation) compared to
fiscal year 2004. One of the major activities enabled by this modest
increase is continued development of the Transformational Technology
Core. Additionally, this increase supports continuing development of a
production-line system for the preparation of dry storage of spent
nuclear fuel. This production-line system is needed to meet a court-
ordered obligation to move all spent fuel stored in Idaho into dry
storage by 2023 and to be among the early shipments of fuel to the
national spent fuel repository. Finally, this increase supports ongoing
facility upgrades at Program sites.
The majority of the Naval Reactors fiscal year 2005 DOE budget
request funds our work in sustaining 104 operational reactors. This
work involves continual testing, analysis, and monitoring of plant and
core performance especially as these plants age. The nature of our
business demands a careful, measured approach to developing and
verifying nuclear technology; designing needed components, systems, and
processes; and implementing them in existing and future plant designs.
Demanding engineering challenges and long lead times to fabricate the
massive, complex components require many years of effort before
technological advances can be introduced into the Fleet.
Most of this work is accomplished at Naval Reactors' DOE
laboratories. These laboratories have made significant advancements in
extending core lifetime, developing robust materials and components,
and creating an array of predictive capabilities. These advancements
allowed the Navy to extend the service life and intervals between major
maintenance periods for nuclear-powered warships to reduce ship offline
time for maintenance. Increasing ship availability also increases the
Navy's warfighting capabilities and supports the Navy's ability to
surge when needed.
For example, a recent Navy decision to delay a major overhaul and
refueling of the aircraft carrier, USS CARL VINSON (CVN 70), was made
possible in part by our continual monitoring of core performance and
subsequent analysis to establish that the ship had sufficient nuclear
fuel remaining to safely operate during this extended period. This
decision enabled the Navy to fund nearer term priorities without
adversely impacting the Fleet.
New plant development work at the Program's DOE laboratories is
focused on continuing the reactor design for the CVN-21 aircraft
carrier. Design for the CVN-21 nuclear propulsion plant is well
underway. CVN-21 is the first new aircraft carrier designed since the
1960's NIMITZ class. The CVN-21 reactor plant will build on technology
developed for the three generations of submarines designed since
NIMITZ. Compared to the NIMITZ-class propulsion plant, the CVN-21
propulsion plant will provide three times the electrical generation and
distribution capacity, and will require about 50 percent fewer Reactor
Department personnel. This modern technology will enable increased
warfighting capability and operational availability, while lowering
life-cycle costs.
Another aspect of DOE laboratories' development work is the
Transformational Technology Core (TTC). The TTC is a direct outgrowth
of the Program's advanced reactor technology work. The TTC will use new
core materials to achieve a significant increase in core energy density
(that is, more energy in the core without increasing reactor size,
weight, or space). The TTC will be forward-fitted into the VIRGINIA-
class submarines, which will be the mainstay of the submarine fleet for
future decades, without the need to redesign the ship. The importance
of TTC is becoming more evident as we depend on our SSN's more in the
current national security environment. The goal is to achieve at least
a 30 percent increase in energy.
We are also prudent stewards of the environment. The four prototype
reactors at the Naval Reactors Facility (NRF) in Idaho are defueled and
in an environmentally benign, safe layup condition; site and reactor
plant dismantlement work is planned for future years. The two shutdown
prototype reactors at the Kesselring site in New York have been
inactivated and defueled, and major dismantlement work was completed in
fiscal year 2003. Other dismantlement work at Kesselring Site is
continuing. Dismantlement work and unrestricted radiological release at
the Windsor site in Connecticut are complete, and approval from the EPA
and the State for chemical release for unrestricted future use and
property transfer is expected later this year.
NAVAL REACTORS FISCAL YEAR 2005 DEPARTMENT OF ENERGY BUDGET DETAIL
Naval Reactors' technical budget request is categorized into four
areas of technology: Reactor Technology and Analysis; Plant Technology;
Materials Development and Verification; and Evaluation and Servicing.
This approach supports the integrated and generic nature of our DOE
research and development work. The results of Naval Reactors' DOE-
funded research, development, and design work in the following
technology areas will be incorporated into future ships and retrofitted
into existing ships.
--The $232.1 million requested for Reactor Technology and Analysis
will continue work on the design for the new reactor for CVN-
21. These efforts also support a portion of the design of the
TTC, a new high-energy core that is a direct outgrowth of the
Program's advanced reactor technology work. TTC will support
national security demands by providing additional energy for
one or a combination of:
--Extended ship life,
--More operating hours per operating year,
--Higher ship transit speed,
--Increased available energy to enable future innovations, such as
the ability to recharge off-board undersea and air
autonomous vehicles, or any other use for energy yet to be
conceived.
The increasing average age of our existing reactor plants, along
with future extended service lives and reduced maintenance
periods, place a greater emphasis on our work in thermal-
hydraulics, structural mechanics, fluid mechanics, and
vibration analysis. These factors, along with longer-life
cores, mean that for years to come, both the reactor plants and
the reactor cores will be operating beyond our previously
proven experience base. To counter this, our improved analysis
tools and understanding of basic nuclear data will allow us to
predict performance more accurately and thereby better ensure
safety and reliability throughout the extended life.
--The $155.5 million requested for Plant Technology provides funding
to develop, test, and analyze components and systems that
transfer, convert, control, and measure reactor power in a
ship's power plant. Reactor plant performance, reliability, and
safety are maintained through a full understanding of component
performance and system condition over the life of each ship.
The request supports both the goal of enhancing steam generator
performance and the goal of reducing lifecycle costs by
eliminating the need for expensive inspection and maintenance.
In addition, development work for improving VIRGINIA steam
generator performance is needed for the plant to exploit the
additional energy available from the TTC. Naval Reactors is
developing components to address known limitations or to
improve reliability of instrumentation and power distribution
equipment by replacing obsolete equipment that is increasingly
difficult to support. Additional technology development in the
areas of chemistry, energy conversion, plant arrangement, and
plant components will continue to improve reactor performance
and support Fleet operational requirements.
--The $150.8 million requested for Materials Development and
Verification funds material analyses and testing to provide the
high-performance materials necessary to ensure that naval
nuclear propulsion plants meet Navy goals for extended warship
operation and greater power capability. More explicitly,
materials in the reactor core and reactor plant must perform
safely and reliably for the extended life of the ship. Testing
and analyses are performed on the fuel, poison, and cladding
materials to verify acceptable performance, as well as to
develop materials with increased corrosion resistance and
lifetime capability. Testing and development of reactor plant
materials also leads to improvements such as more resilient
materials that we are incorporating into our newest designs.
Funds in this category also support a portion of Naval Reactors'
work at the Advanced Test Reactor (ATR), a specialized
materials testing facility operated by the DOE Office of
Nuclear Energy, Science, and Technology that we use to test
reactor core and plant materials specimen. The specimen are
subsequently examined at the Expended Core Facility (ECF) at
NRF or the Radioactive Materials Laboratory at Knolls Atomic
Power Laboratory to obtain data used to support both core and
plant materials development. This enhanced knowledge of
materials performance has been key to technical breakthroughs
in extending core life. Although Naval Reactors is not
responsible for ATR, it is important to our continued efforts
to understand material behavior. ATR is more than 35 years old
now, and I understand that the Department of Energy's Office of
Nuclear Science and Technology has identified a need for
increased funding to keep it viable for years to come. I
support this funding.
--The $172.0 million requested for Evaluation and Servicing sustains
the operation, maintenance, and servicing of land-based test
reactor plants and part of Naval Reactors' share of ATR
operations. Reactor core and reactor plant materials,
components, and systems in these plants provide important
research and development data and experience under actual
operating conditions. These data aid in predicting and
subsequently preventing problems that could develop in Fleet
reactors. With proper maintenance, upgrades, and servicing, the
two operating test reactor plants and the ATR will continue to
meet testing needs for quite some time.
Evaluation and Servicing funds also support the implementation of
a dry spent fuel storage production-line that will allow us to
put naval spent fuel currently stored in water pits at the
Idaho Nuclear Technology and Engineering Center and at ECF into
dry storage. Additionally, these funds support ongoing cleanup
of facilities at all Naval Reactors sites to minimize hazards
to personnel and reduce potential liabilities due to aging
facilities or changing conditions.
program infrastructure and administrative requirements
In addition to the budget request for the important technical work
discussed above, infrastructure and administrative funding is required
for continued support of the Program's operation and infrastructure.
Specifically, the fiscal year 2005 budget request includes:
Facility Operations.--Fifty-point-eight million dollars are
requested to maintain and modernize the Program's facilities, including
the Bettis and Knolls laboratories and ECF, through Capital Equipment
purchases and General Plant Project upgrades.
Construction.--Seven-point-two million dollars are requested to
refurbish and replace Program facilities. This includes funding for the
construction of the ECF Dry Cell project in Idaho, a project that will
significantly improve Naval Reactors' ability to process naval spent
fuel for dry storage. The requested funding also supports construction
of a replacement industrial facility building at the Knolls Atomic
Power Laboratory to consolidate non-irradiated material development
fabrication and characterization (i.e., determining material
properties) activities, which are currently located in five separate,
aging buildings.
Program Direction.--Twenty-nine-point-five million dollars are
requested to fund Naval Reactors' DOE personnel at Headquarters and the
Program's field offices, including salaries, benefits, travel, and
other expenses. This staff maintains oversight of the Program's
extensive day-to-day technical and administrative operations, while
continuing to ensure compliance with environmental, safety, and other
regulatory requirements--all of which, notwithstanding our excellent
record, necessitate substantial effort.
PERFORMANCE MEASUREMENTS, GOALS, AND ACCOMPLISHMENTS
Naval Reactors has a long history of operating with the highest
levels of integrity and operational accountability. The Naval Reactors
Program has always been dedicated to continual improvement. We use
semiannual reviews of short and long-range plans to adjust and refine
work priorities. Work is broken up into thousands of discrete
``deliverables,'' each assigned to an individual responsible for
completion of the task on schedule. Monthly financial reports from
contractors are used to compare actual performance against projected
performance. Additionally, Naval Reactors Headquarters closely oversees
its management and operating contractors through periodic reviews,
formal audits, performance appraisals, and close integration with our
resident field offices.
For the fiscal year 2003 end-of-year performance results, my
Program met or exceeded all major performance targets. We ensured the
safety, performance, reliability, and service life of operating
reactors for uninterrupted support of the Fleet. We exceeded 90 percent
utilization availability for our training and test reactor plants. As
of today, U.S. nuclear-powered warships have safely steamed over 130
million miles. Naval Reactors developed new technologies, methods, and
materials to support reactor plant design, which included attaining the
fiscal year 2003 goal of 99 percent design completion of the next-
generation submarine reactor. We continued design of the propulsion
plant for the next-generation aircraft carrier, which is on schedule to
meet the planned ship construction start in fiscal year 2007.
Additionally, Naval Reactors maintained its outstanding radiation
protection program and its environmental performance: no Program
personnel have ever exceeded the applicable annual or lifetime Federal
limits for radiation exposure, and Program operations had no adverse
impact on health or on the quality of the environment.
Naval Reactors has met or expects to meet or exceed all fiscal year
2004 performance targets, which are to achieve 90 percent utilization
availability for operation of our training and test reactor plants; to
safely steam on nuclear power about 2 million more miles; to complete
the next-generation submarine reactor design deliverables (design is
complete); to complete 60 percent of the CVN-21 reactor plant design;
to have no personnel exceed the annual Federal limit for radiation
exposure; and to have no adverse impact on human health or the quality
of the environment.
CONCLUSION
The ongoing support of the Senate Appropriations Committee
Subcommittee on Energy and Water Development is one of the most
important factors in our success story. The subcommittee has recognized
the requirements and demands the Program confronts daily: a continuing
need for power projection and forward presence far from home, which
strains our limited number of nuclear ships; an aging nuclear fleet;
and the funding required to meet these commitments today and in the
future.
The unique capabilities inherent in nuclear power have played a
vital role in our Nation's defense over the past 50 years. With your
support, this legacy will continue far into the future as the Nation
meets each new threat with strength and resolve. Naval Reactors' record
is strong, the work important, the funding needs modest.
Thank you for your support.
Senator Domenici. Well Admiral, I'll just tell you the
truth. We serve around here as elected officials and we meet
people who give their lives to the government and do services
for our people. And sometimes we run into some that we do not
know what to tell them in terms of how much we appreciate them.
We use the typical words but they are not enough. But we really
think the United States Navy's use of nuclear power is one of
the most fantastic achievements of mankind. And when they have
done it since Nautilus without one single nuclear mistake and
have had as high as 123, I think, nuclear reactors floating
around the oceans of the world, it is tremendous. And you are
in charge of that and you made it go along just like it had
been, or better. We do not need any accolades or thanks from
you because they all run the other direction.
Admiral Bowman. Thank you, sir.
Senator Domenici. Now, who is next? The other two do not
need to testify?
Ambassador Brooks. No sir, that's why I was so long, I was
doing for all three of us.
Senator Domenici. All right. Well, I am going to ask a few
questions and yield to you two Senators and if we do not finish
we will submit the rest of them.
ROBUST NUCLEAR EARTH PENETRATOR
Mr. Brooks, I do not have this question written up but I
would like you to do something again for me. I have been a
budgeteer, until this year, part of the budget process for 28
years, Chairman 10 times, maybe. Now, you are asking us to
approve how much money for the research on the penetrating
warhead?
Ambassador Brooks. Twenty-seven-point-five million dollars.
Senator Domenici. Now, the Senator from California says
that you have $500 and some million.
Senator Feinstein. Four-hundred-and-eighty-four.
Senator Domenici. Four-hundred-and-eighty-four million
dollars that you are going to spend and she says that is why
she will not vote for it, among the reasons, because that is
what you are going to spend, that is what you are going to do.
Tell me why that number is in there at all.
Ambassador Brooks. One of the things we tried to do
starting 3 years ago was to get to true 5-year budgeting so
that when we submitted a budget to the Congress we submitted a
5-year plan that really meant something. That's important for
the Congress and it was also important for us because otherwise
you would start things that you couldn't finish. When we
prepared this 5-year plan we had no idea, and we don't know
now, whether the research will show this is feasible or whether
the President will decide to pick it up. But if he does, we
wanted to have the wedge to support the funding in the out-
years. So we put the money in there because it was our
interpretation of the right thing to do in terms of making sure
the Congress knew the implication of the research that we were
doing and making sure that if the President did so choose,
after the completion of the study, that we had preserved his
options financially. It was not intended to suggest that we
made a decision, let alone that we think that you've made a
decision.
Senator Domenici. Well I'll tell you, Mr. Ambassador, you
get hit both ways. If you leave it out somebody says you are
underselling the program and it costs a lot more than 27 or 24.
And if you put it in as the outside you get beat over the head
because that is what you are going to spend. But we have to
figure out a way, in the next 5 or 6 weeks, 7, to make the case
that putting that number in does nothing with reference to this
program in terms of its future, that its future is capsulized
in the funding as described to be used that you ask for right
now. I am willing, in this bill, to fight it out. If we lose,
we lose, if we win, I am willing to put any kind of language in
that says that is it. There is no other expenditure. You do it
and no more. And before you do anymore you must get
concurrence. Now, that is all right with you, right?
Ambassador Brooks. Yes sir. That's completely what the law
says.
NIF
Senator Domenici. Okay. Now, let me move to Dr. Beckner. I
understand, Dr. Beckner, that NIF is still at least 6 years and
$1 billion away from completion of this project. Is it accurate
to say that NIF is both the largest laser and the most
expensive diagnostic tool in the NNSA stockpile? When we
develop any technology, we need to ask ourselves, is this
outcome worth the cost? Right?
Dr. Beckner. A fair question.
Senator Domenici. If you do not achieve ignition, the
American people have purchased a laser that is 25 times more
expensive than the Z Machine, which proved its worth 1 year too
late. It came into existence one year after we started funding
NIF. It is proceeding along as a much cheaper machine but I
think we need to understand that the project is viable before
we spend billions more on the life of this program.
So my question to you, how much money are you willing to
spend above ignition? Excuse me, how much money are you willing
to spend to achieve ignition and at what point do you say, we
have spent too much?
Dr. Beckner. Our present plan shows the expenditures out
through the year 2010 in the budget that we've submitted, and
it's close to a billion dollars, as you've said. I believe we
need to get to that point in order to, in any sense, have a
chance at achieving ignition. You can't do it with a smaller
laser, based on everything that we know today. That's only part
of the answer, however. The second part really is that absent
ignition, we require this laser for a large number of
applications that are specific to the sustenance and the study
of phenomena associated with nuclear weapons themselves. In
other words, it is a very significant element of Stockpile
Stewardship. Ignition, of course, is important, make no mistake
about it, and we will use it aggressively to achieve that goal.
But we do have this additional reason to need NIF. And I don't
want us to forget that.
Senator Domenici. Do you mean for the Stockpile
Stewardship?
Dr. Beckner. Yes sir.
Senator Domenici. Well of course, that is why we put it in
there.
Dr. Beckner. Yes sir.
Senator Domenici. But if it does not work it does not
matter where we put it, right?
Dr. Beckner. Well, there are many things you can do with a
laser without achieving ignition, that's my point. We will use
it for those other things.
Senator Domenici. But will those help with Stockpile
Stewardship?
Dr. Beckner. Yes sir.
Senator Domenici. And would we need $5 or $6 billion to
achieve that?
Dr. Beckner. No, I think we would not have embarked upon
this mission if we did not believe we had a reasonable
opportunity to achieve ignition.
Senator Domenici. Ignition.
Dr. Beckner. Yes sir.
Senator Domenici. So let me go on. If the 2005 budget
specifies that NIF ignition has been delayed until 2014, that
gives me great concern regarding the project. Delaying the
ignition start date is contrary to news that the project is
ahead of schedule. I understand that the laser installation is
18 months ahead of schedule and the beam light infrastructure
was achieved nearly 3 years ahead of schedule. As a result of
these conflicting statements, I am very skeptical as to the
actual status of NIF. To date, $2.5 billion has been spent and
another billion required before we know whether or not this
project will work. I do not share this all or nothing attitude
because the costs are very high and the budget is very slim. So
I believe we need a more measured approach to address the
significant technical measures and technical challenges that
lie ahead.
George Miller, the NIF Associate Director, is he here
today?
Dr. Beckner. Not to my knowledge.
Senator Domenici. Is he still doing this job?
Dr. Beckner. Yes he is.
Senator Domenici. Did he move out there?
Dr. Beckner. Yes. George is an employee of Lawrence
Livermore National Laboratory.
Senator Domenici. Well, whoever sees him, give him my
regards. Thank you.
Dr. Beckner. I'll do that.
Senator Domenici. Terrific guy. He is the Associate
Director, he stated that the most significant technical
challenge he has is the full ignition of the lasers. I believe
the first cluster, which is 48 lasers, or one-quarter of the
total, would certainly give a clear indication of whether
ignition is feasible. Is that what you think?
Dr. Beckner. I believe it's more complicated than that.
Senator Domenici. You what?
Dr. Beckner. It's more complicated than that.
Senator Domenici. Okay.
Dr. Beckner. Let me back up to your earlier statement.
First of all, I've met with the staff of this committee as well
as the other three committees to clarify our recent decisions
to change course on some of the milestones in order to pull
back the ignition target to 2010, as opposed to 2014. And we've
done that because of our realization that this committee and
the other committees as well have a very strong view that we
must maintain that schedule. We had allowed it to move out
because of priorities in other elements of the program and
without the full understanding that this was unacceptable. So
we have changed that plan and we've done it also because we've
had some technical progress in target design which makes it now
possible to do that. So we are very much aware of the
committee's determination that we stay on target with ignition.
That's the first part.
Secondly, we agree with you that we need more milestones
for this committee and the other committees of the Congress to
track. We're going to put those in place; we will provide them
to you annually; and we'll report to you at regular intervals
to be sure that you are satisfied with the progress of the
program.
Now, the third part of your question regarding
demonstration of significant events at the time we have one
cluster operational, I think is not likely to be--we would not
want to see that as an end point. That's my concern. We
certainly see that as a very important target in program
progress and we have that as a goal.
Senator Domenici. Well, I am going to yield here shortly
because I understand these Senators have more interest than
just NIF. But I am not finished with you, even if we have to do
it another day. I have two questions. First, I want everybody
here to know that I know him very well; he worked in my State
and, you know, I have been with him many times when he was not
in such a hard position. And he smiles no matter what, when he
was doing the other work or this so, I guess it does not really
matter. He has got a good brain.
Dr. Beckner, I would like you to put together a budget and
a schedule that will accelerate the installation and testing of
the first cluster in fiscal year 2005. Can you do that?
NIF PLAN
Dr. Beckner. I can certainly put together the plan. I don't
know the results of your instructions but we'll certainly be
responsive to your request.
[The information follows:]
It is not possible to complete the first cluster milestone in
fiscal year 2005 without a significant increase in the Total Project
Cost. Procurement logistics and lead times limit our ability to
complete the scope of work required to accelerate the first cluster
into fiscal year 2005. The ability does exist to marginally accelerate
the first cluster and project completion dates if the funding profile
is changed without increasing the Total Project Cost (TPC).
The first cluster milestone is currently scheduled for completion
in June 2006 with Project completion in September 2008. We believe it
is possible to accelerate these dates by modifying the funding profile
for the project beginning in fiscal year 2005. The first cluster
milestone could be accelerated by 1 to 3 months, and the project
completion date could be accelerated by 3 to 5 months, by moving $59
million from fiscal year 2007 to fiscal year 2005 and fiscal year 2006.
Of the $59 million total, $27 million would be required in fiscal year
2005 and $32 million required in fiscal year 2006.
Please let me know if you would support such a change in the
funding profile in order to achieve the schedule acceleration
described. This would allow the ignition campaign to begin sooner and
support the goal of ignition in fiscal year 2010. I ask you to
recognize that if we must achieve the change within the FYNSP plans, it
will likely be at the expense of other activities which are vital to
the Stewardship mission. We will not proceed with additional planning
until we receive your input.
Senator Domenici. Now, I want to state, and then I yield
and will come back for a number of questions. I want to say,
you know how I feel right now, Dr. Beckner, is that I have been
hoodwinked. And not a little hoodwink, a big one. Because I
think what we are going to get out of this is a big civilian
tool that can be used at that laboratory for a lot of research.
And we are going to run around saying that is the best research
laser facility the world has ever seen. And I tell you, if I
see that coming, they better not be asking me for any money
because I would close it down. Because that is not fair. We
never intended to spend $5 to $6 billion to build a laser
facility for a laboratory that would provide civilian research
and visitations from around the world. So I know you all look
at this and say well, it is going to do something. And it is
sure going to be extraordinary. But that is not why I agreed to
pay for it.
Dr. Beckner. I understand.
Senator Domenici. I agreed in a very, very highly debated,
that this was going to reach ignition and that would be the
best part of science-based stewardship. Think of that. The best
part. Now right now we are moving with Z also.
Dr. Beckner. Yes sir.
Senator Domenici. And we are.
Dr. Beckner. Yes sir.
Senator Domenici. And nobody is going to stop us from doing
that. It may do three-quarters of the work but it is a little
tiny weeny $100 million project and it may do three-quarters of
your work, or more. So, in any event, we will make sure that
everybody understands that.
Now, Senator Bennett, you are next. We are going on time of
arrival, and then the Senator from California.
NUCLEAR TESTING
Senator Bennett. Thank you very much, Mr. Chairman.
Ambassador Brooks, I think I heard the answers to my questions
in your statement but let us go over them again so that they
are very clear.
There is a moratorium currently in place. Is that correct?
Ambassador Brooks. Yes sir.
Senator Bennett. And testing is not imminent, is that
correct?
Ambassador Brooks. That's correct.
Senator Bennett. You said that there is no anticipation of
testing at any foreseeable time in the future. Is that correct?
Ambassador Brooks. Yes.
Senator Bennett. None that you can now foresee?
Ambassador Brooks. That's correct.
Senator Bennett. And that the testing will not happen
unless the President makes a very public finding and the
Congress acts in funding that finding. Is that correct?
Ambassador Brooks. That's correct.
Senator Bennett. So the newspaper stories, I think I heard
you say, are not correct? That say that nuclear testing is now
imminent as a result of the vote we took last year?
Ambassador Brooks. I haven't seen stories that blamed me
for that one, but in any event, if there are such stories
they're not correct.
Senator Bennett. Not you, they blame us. So there is no
testing pending at the present time?
Ambassador Brooks. No sir.
Senator Bennett. Or in the future circumstances that you
currently can see?
Ambassador Brooks. No sir.
Senator Bennett. All right.
Ambassador Brooks. But I don't want to mislead the
committee. If I find a problem that can only be verified
through testing I would not hesitate to recommend to the
Secretary and he would not hesitate to recommend to the
President that we test. I have no reason to believe I'm going
to find that problem, but it is a hedge against the possibility
of finding that problem that we've asked for the money to
ensure that we are ready if that contingency occurs. We have no
reason to believe it's going to occur.
Senator Bennett. All right. Here is a postcard that is
currently circulating. I am sure you have seen it. I get copies
of it. I cannot respond to most of them because they do not put
return addresses on them, they just send them in. And it says,
for those that are not familiar with it, ``This is an
underground nuclear test.'' And it shows an obvious spew into
the atmosphere. Would you comment on that, because it has great
currency right now.
Ambassador Brooks. Yes sir. The United States started doing
only underground tests following the Limited Test Ban Treaty in
1963. In 1970, a test called Baneberry vented. That is to say,
although we thought it would all be contained, it was not.
Radioactivity was spread off the test site to an area north and
west of the site, all within Nevada; there was no radioactivity
above background levels detected in Utah, although there had,
obviously been fallout in Utah and indeed worldwide and from
the atmospheric tests of the 1950's and 1960's. After
Baneberry, we took a 6-month moratorium on underground tests.
Now, in the context of today, when we haven't tested for over
10 years, that doesn't sound like much but in the 1970's when
we had a very robust test program that was a significant step.
We made a number of both analytic and technical corrections.
What had happened was, there was a fissure, a crack in the
Earth that we had not detected. So first, we required that for
future tests we drill more exploratory holes to make sure we
find fissures. We put together an evaluation panel that
included both testing experts and geologic experts to evaluate
the containment design of each test and then we required that
those findings be peer-reviewed, in accordance with standard
scientific procedures. We set up a series of environmental
monitoring stations and those networks operated continuously.
Now, that was a long time ago. But we have not had a repeat
of Baneberry. We had some far less significant events, three I
believe, in the 20-some odd years following that, two of which
resulted in nothing leaving the test site. We are confident
that with the combination of the corrective actions we put in
place then and the greater scientific understanding that we
have now of geology and hydrology, and the greater formality
that we build into all aspects of nuclear safety, and the
funding that the Congress has given us in the last 2 years to
make sure we do careful safety analysis, that if, at some
future date, the President decides we need to do an underground
test there will be a policy debate, but there won't be any
public health issue because we are confident that we will make
sure that we do not have a repeat of that 1970 event.
Senator Bennett. So just to summarize what you have told
me, since this occurred in 1970, for the intervening quarter of
a century, there has never been a reoccurrence of something
like this postcard?
Ambassador Brooks. There certainly has been nothing like
that. As I said previously there has been minor venting, but
nothing like Baneberry.
Senator Bennett. How many tests are we talking about? If we
had three occasions, is that three out of thirty or?
Ambassador Brooks. Between 1970, in 22 years, oh, I don't
know. I'd have to give you that for the record, a couple
hundred.
Senator Bennett. Couple hundred?
Ambassador Brooks. Yes sir. Let me supply that for the
record to make sure I'm giving you the right answer.
NUCLEAR TESTS SINCE BANEBERRY
Senator Bennett. I would appreciate knowing that, for the
record, so that, we are within 1 percent?
Ambassador Brooks. I think so sir, yes sir.
Senator Bennett. And I would like to know the date of the
last one.
Ambassador Brooks. Yes sir. I'd be more than happy to
supply that.
[The information follows:]
There were 384 underground nuclear tests at the Nevada Test Site
since the 1970 Baneberry test.
The last underground nuclear test was conducted at the Nevada Test
Site on September 23, 1992.
Senator Bennett. So that if it was 15 years ago there is a
little bit higher sense of confidence than if it was 5 years
ago, when the last leak.
Ambassador Brooks. Yes sir.
Senator Bennett. I would appreciate it.
Ambassador Brooks. It was more than 11 years ago because
we've done no testing in the last 11 years.
NUCLEAR RESEARCH
Senator Bennett. Okay. You say you want to do research,
that there is no pressing indication now that that research
would lead to testing, indeed, there is nothing you have in
your mind that would suggest that it would lead to testing. But
you want to do the research anyway. Are you aware of research
that is being done outside of the United States that you feel
you want to catch up with? Is that part of the impetus here?
Ambassador Brooks. There are multiple impetuses. We don't
want to be surprised by developments outside of the United
States. That's one reason for looking at advanced concepts and
making sure that you understand what the laws of physics will
allow. But I think we also want to make sure that we are paying
attention to maintaining the safety and reliability of the
existing stockpile. So I think there are multiple reasons why
we want to look. I don't rule out that someday the President
will want us to have a capability that we don't have. Nuclear
Earth Penetrator, in my view, both as a matter of practice and
as a matter of law, is a capability we sort of have now, we're
just trying to make it better. So that's a somewhat special
case. But the principle reason for advanced concepts and the
projects that we have looked at are primarily, I think,
motivated by making sure we're not overlooking an opportunity
to improve safety, security and reliability. There's a
secondary motivation to make sure that we are not subject to
technological surprise by someone outside this country. We know
that there is a vigorous program in Russia. We don't understand
everything we'd like to and I can't, in an open hearing go into
what we do understand. Some of the things they're doing we
don't completely understand so it would be useful to make sure
we understood the technology. But I think we're more motivated
by safety, security, and reliability than by sort of a
technological keeping up with others.
Senator Bennett. All right. But I want to get back to one
of the things you said when you outlined the reasons for
looking at existing warheads to see if they can be adapted.
Clear military utility would move only if the President
approves and Congress funds. And number three caught my
attention because I have not seen it before. Maybe I have not
been paying attention. When you say this is not a change in our
policy, that this is deterrence.
Ambassador Brooks. Yes sir.
Senator Bennett. If that is the case, that means, for
example, this would not have been used in Iraq. Let's assume
there was a circumstance where this particular weapon that you
are researching, or this adaptation, let me get the words
right, that this adaptation of a weapon that you are
researching, might strike the Joint Chiefs as being a good
weapon to use in Iraq. Under no circumstances would that be
considered a deterrent to anyone else who might attack us. So
you are saying it is the position of this administration that
the weapon would not be used in that circumstance, even if it
were available.
Ambassador Brooks. We have, as a matter of policy, in every
administration I am familiar with, been very careful not to
make dogmatic statements about what a President will or will
not do in support of national security. And I don't want to be
the one to break that tradition. Let me explain what I did
mean.
Senator Bennett. Okay. I will accept that. You do not need
to go any farther than that.
Ambassador Brooks. Okay.
Senator Bennett. But, just to make the comment, that if
indeed this President or some future President, we are going to
decide who is going to be President, come November, this
President or some future President were to come to Congress
while I was sitting in Congress and say, okay, we have done the
research, we think this is a viable weapon, we want now to fund
it and we are going to use it in a situation quite like Iraq,
this Senator would not vote in favor of that. My view of a
deterrent and the use of the nuclear stockpile through the Cold
War, is that it is never used unless the other side puts you in
a position where you do it. You never use it as an offensive
weapon, you never use it in order to project American power.
You use it held in reserve as part of the deterrent capacity of
the United States of America, which is the Polaris submarines
and their nuclear weapons and all of the rest of them. The
Polaris submarine has never fired a nuclear weapon in an
offensive way and it is there to say to a potential aggressor,
if you proceed with your aggression, this is what awaits you.
Ambassador Brooks. That's correct.
Senator Bennett. And just for the record, that is how I
would view, if such a weapon at some point by some future
President were ever proposed. In the context of what you have
said I would view that as having to have that same kind of
restriction that I currently see on Polaris weapons, Polaris
missiles and so on. I will not put you into that box. I
understand that you cannot make that firm statement because you
are a member of the administration. But I can make that
statement because I am answerable to the people of Utah, all of
whom have a very great concern, which I most thoroughly share,
that we do not want to disarm this country, we do not want to
do anything that will harm our national security. But in the
end we want to make sure that as we move down the road to
protect our national security we do not, in any way, endanger
the health and safety of any of our citizens, regardless of the
state in which they live. I am assuming you could support that.
Ambassador Brooks. I'm confident I can speak for the
President on this one. We agree with that. We have no interest
in harming the health and safety of anybody, sir.
Senator Bennett. We just may give you a little help
legislatively at some future point. I have not made up my mind
firmly as to what I might do in terms of legislation that I
will offer. But I appreciate your assurance and we want to do
everything we can on this side to make sure that that assurance
is not forgotten by whomever replaces you in whatever kind of
administration that might come along.
Ambassador Brooks. Yes sir.
Senator Bennett. Thank you, Mr. Chairman.
Senator Domenici. Thank you, Senator. I do not know how
long you are going to stick around but I have some different
views than you. I am not going to make them until it is my
turn. Senator?
ROBUST NUCLEAR EARTH PENETRATOR
Senator Feinstein. Thank you very much, Mr. Chairman.
Ambassador Brooks, I just want to get some of the figures. I
think we have anticipated that the Nuclear Earth Penetrator
figure, 5-year figure, is $484 million. Does that take us up to
phase 6.3?
Ambassador Brooks. Actually I think it takes us beyond 6.3.
So those numbers assume decisions we can't make without your
permission.
Senator Feinstein. Okay, at 6.3, according to the Defense
Authorization Bill, the Earth Penetrator needs authorization
from Congress?
Ambassador Brooks. Yes ma'am.
FUNDING SCHEDULE FOR DIRECTED STOCKPILE WORK
Senator Feinstein. So it is somewhere, I would like to know
for the record, how much will be spent up to that point. What
is the 5-year figure on the battlefield low-yield nuclear
weapons?
Ambassador Brooks. Senator.
Senator Feinstein. Well, give me the advance concepts.
Ambassador Brooks. Do you remember? Is it $9 million a
year?
Senator Feinstein. Number for 5 years?
Dr. Beckner. I think it actually goes a bit beyond that.
Ambassador Brooks. I'll get it for the record, Senator.
[The information follows:]
FUNDING SCHEDULE BY ACTIVITY
[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Year Fiscal Year Fiscal Year
2003 2004 2005
----------------------------------------------------------------------------------------------------------------
Directed Stockpile Work:
Stockpile Services Advanced Concepts........................ .............. 6,000 9,000
Stockpile Services Robust Nuclear Earth Penetrator.......... 14,577 7,435 27,557
----------------------------------------------------------------------------------------------------------------
FYNSP SCHEDULE
[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Fiscal Fiscal Fiscal Fiscal FYNSP
Year 2005 Year 2006 Year 2007 Year 2008 Year 2009 Total
----------------------------------------------------------------------------------------------------------------
Stockpile Services Advanced Concepts.......... 9,000 14,425 14,874 14,595 29,472 82,366
Stockpile Services Robust Nuclear Earth 27,557 94,955 145,371 128,431 88,416 484,730
Penetrator Research and Development..........
----------------------------------------------------------------------------------------------------------------
FUNDING SCHEDULE FOR PIT MANUFACTURING AND CERTIFICATION CAMPAIGN
Senator Feinstein. Okay. And the 5-year figure for the pit
facilities.
Ambassador Brooks. Yes ma'am. May I get that for the record
as well? Although I may have that here.
[The information follows:]
FUNDING SCHEDULE BY ACTIVITY
[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Year Fiscal Year Fiscal Year
2003 2004 2005
----------------------------------------------------------------------------------------------------------------
Pit Manufacturing and Certification Campaign Modern Pit Facility 4,242 10,810 29,800
----------------------------------------------------------------------------------------------------------------
FYNSP SCHEDULE
[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Fiscal Fiscal Fiscal Fiscal FYNSP
Year 2005 Year 2006 Year 2007 Year 2008 Year 2009 Total
----------------------------------------------------------------------------------------------------------------
Pit Manufacturing and Certification Campaign 29,800 43,291 94,570 101,434 105,168 374,263
Modern Pit Facility..........................
----------------------------------------------------------------------------------------------------------------
Senator Feinstein. Okay. Now, as I understand it, the
Advanced Weapons Concept will not require Congressional
approval prior to going into the engineering phase. Is that
correct?
Ambassador Brooks. I'm always reluctant to give away
prerogatives but I didn't think so.
Senator Feinstein. Defense Authorization Bill, page 855.
Ambassador Brooks. I mean.
Senator Feinstein. And it is just the, unfortunately, just
the Robust Nuclear Earth Penetrator.
Ambassador Brooks. The Advanced Concepts work is really
less far along. I mean, as a practical matter for us to take
something that came out of an Advanced Concept and do something
significant with it, at a minimum we would require
Congressional line-item funding. Whether we would need, I mean,
you're correct that the National Defense authorization bill
speaks specifically of 6.3, other legislation speaks of
production. That unambiguously requires a separate decision by
Congress. If you're asking a technical, legal question I'd like
to get back to you for the record. If you're asking a practical
question, of course nothing that we do in Advanced Concepts can
move into any sort of meaningful program without the Congress
because we have to come back to you for money.
Senator Feinstein. I am trying to find out is how much are
we going to spend, up to the point of engineering build on
these programs. What is the total 5-year cost up to that point
of these three programs, RNEP, Advanced Concepts, Pit?
Ambassador Brooks. All right. May I provide that for the
record to make sure I'm precise?
[Clerk's Note.--See preceding tables.]
Senator Feinstein. I would appreciate it. Now, we have
discussed this and----
Senator Domenici. Senator, would you yield for a moment?
Senator Feinstein. Of course.
Senator Domenici. First step, I would like to make the
point and seek your thoughts, Senator. Here we have the
Penetrator and whatever we are doing with reference to its
research, and we are going to look carefully at building a
plant to make pits. If this idea had never been invented we
would still be doing this.
Senator Feinstein. You mean the pit?
Senator Domenici. Yes.
Senator Feinstein. Yes.
Senator Domenici. It has nothing to do with it.
Senator Feinstein. To field old warheads that are in stock,
right.
Senator Domenici. Yes. So, you know, when we talk about and
add them up, the public assumes that they are in some way
related so that all this money that we're spending for the Pit
is related to this work for the Penetrator, they are unrelated.
I mean, you are out there thinking about how many more years
can we not have a Pit, right? It has nothing to do with whether
we build Penetrators, right?
Ambassador Brooks. That's correct.
Senator Feinstein. You are correct, Mr. Chairman, as
always. However, there is one thing. The money for the Pit is
huge. And it is based on 450.
Senator Domenici. Correct. It might be too much.
Senator Feinstein. And it may well be very much too much
because a study has not been completed yet to let us know
whether it is 30 or 40 years or whatever we would need the Pit.
Ambassador Brooks. May I make a correction?
Senator Feinstein. Of course, please.
Ambassador Brooks. We are required, under the National
Environmental Policy Act, and we do an analysis, we have to be
able to look everybody in the eye and say there's no plausible
alternative that has been excluded. So, the Environmental
Impact Statement that we've now suspended work on, analyzes
between a capability of 125 pits a year and 450 pits a year. I
think it would be, I don't want to prejudge decisions that
haven't been made, but it's very hard for me to see, based on
what we know, that we're going to be anywhere near that upper
limit. But I've got to make sure that the analysis is broad
enough, because if there's an option that's outside this
analysis, I'm in violation of the law because I haven't
examined all analyses. So I would urge you not to look at the
upper limit of what we're analyzing under the National
Environmental Policy Act and assume that that's a program. The
lower level is probably roughly right. I could explain why now
but it would be easier if you'd let me send you a paper.
Senator Feinstein. I would appreciate that. For somebody
like me, when you indicate a capacity of 450 pits, you send a
major signal that a whole major new program is going into
place. At 125, it may be a servicing unit, you know, based on
what you need to do to replenish and fix old stock. But I am
very suspicious. I think I know where you are going and I think
it is a wolf in sheep's clothing. I think to spend all this
money on the Nuclear Earth Penetrator, which as I understand it
will produce 1.5 million tons of radioactive debris that is
going to spew out with no present way of controlling it is
beyond sanity. I mean, I do not know why anyone would even want
to do that.
FALLOUT
Let me ask you this: is there any known way, from a physics
point of view, because I have spent some time now, with Dr.
Drell, of containing the radioactive fallout from 100 kiloton
nuclear bunker buster?
Ambassador Brooks. There's no way that I know of. I don't
know of anyone in the administration who advocates that and
nothing in our proposal for the Earth Penetrator or for the
previous B61-11, which was the previous administration's less
robust penetrator, was ever intended to suggest that you can
contain fallout; you can't. I have no idea how you would do
that. And, as I think you and I have discussed before, if I
have said or anyone in this administration has said, anything
that suggests that we believe that nuclear use is anything
other than absolutely horrible and a decision a President would
only take in the most severe circumstances, then we have
misspoken. The issue that we have is, there are facilities in
the world that are beyond our ability to threaten except with
nuclear weapons. We think it is possible that the country may
decide it wants to threaten those facilities anyhow. We think
we ought to spend some money to find out if this country can
have that option by finding out whether I can take an existing
weapon and threaten those facilities.
Senator Feinstein. All right. Just for the sake. But you
know you cannot contain the fallout.
Ambassador Brooks. That's correct.
Senator Feinstein. And you know how big you have got to get
to get down deep enough let alone have the sufficient casing to
enable the weapon to go down that deep. Therefore you are going
to have tremendous radioactivity.
Ambassador Brooks. Yes ma'am.
Senator Feinstein. So why does it become even a viable
option? If used in North Korea you jeopardize Japan, you
jeopardize South Korea. Who in their right mind would ever do
this?
Senator Domenici. Senator, would you yield?
Senator Feinstein. Of course.
Senator Domenici. Senator, the problem with the argument
is, I have heard you here and I do not think you are for
disarmament, are you, of our nuclear weapons? Do you want to
get rid of them all?
Senator Feinstein. Well, I will tell you, I am for no first
use.
Senator Domenici. That is not my question. Do you want us
to have some or not have some?
Senator Feinstein. I am not for the Nuclear Posture Review.
You asked a question.
Senator Domenici. Yes.
Senator Feinstein. That cites seven nations against whom we
would countenance a first use of nuclear weapons. I am not for
that.
Senator Domenici. I understand.
Senator Feinstein. Therefore, when we are going to spend a
half-a-billion dollars up to engineering to develop a 100-
kiloton nuclear bunker buster, which you cannot contain the
radiation, I have got to wonder well, who is smoking something?
Why are we doing this if you cannot contain the radiation?
Senator Domenici. Senator, I do not know who is smoking it,
but let me tell you. There is more radiation exposure,
uncontrollable, from existing nuclear weapons than from the
underground bunker possibility. So the logic is, we should not
have any of those because there is no way to control a nuclear
explosion, the radioactivity, from the hydrogen bombs we have.
And I do not know today how many we have but down from many
thousands to a controllable number. But the issue is not an
issue of damaging the world. Because if that is the issue, we
have got to get rid of all of our nuclear weapons in the event
that we are saying we do not want to harm anything. They are
there so that nobody will ever use them. That is why they are
there.
Senator Feinstein. But that is not the issue. The issue is,
these are new classes of nuclear weapons.
Senator Domenici. But the argument that they are going to
pollute the world more than the weapons we have is not a valid
argument. The rest of your arguments are valid but not the
pollution argument.
NUCLEAR DETERRENCE
Senator Feinstein. You were out of the room when Senator
Bennett made a very interesting point, and the point was one of
deterrence, and what is, in effect, a deterrent. And a nuclear
arsenal of missiles may well be some form of deterrent. A
nuclear Earth Bunker Buster, I do not see as a deterrent. And
if we are going to build tactical battlefield nuclear weapons,
God help our sons and daughters that go on that battlefield. So
I become very upset. And Ambassador, you say the included out-
year funds are only to preserve a President's option. And then,
if you think about the option, how would a President ever, ever
say, use a 100-kiloton--Hiroshima was 15 kilotons--use a 100-
kiloton nuclear Earth Penetrator and have no way to control the
nuclear fallout, the radioactive fallout?
Ambassador Brooks. May I try it?
Senator Feinstein. Of course.
Ambassador Brooks. First of all, part of the problem in
open hearings is that we can't talk about specific yields. But
let me just make the technical point that if there is a bunker
that you want to hold at risk, it takes far more energy if it
bursts in the air to hold that at risk than it does if you can
get it just a little way into the ground. So it is quite
possible that a penetrator can be of lower yields. But the more
general point, I think, is the problem we've always had with
nuclear deterrence, Senator. On the one hand, nobody can think
of a situation in which a rational human being would want to
use nuclear weapons. On the other hand, in order to deter, we
have to tell people who think differently than we that if they
did something that was so serious that it would warrant
retaliation, we're capable of doing it. It is the case that
increasingly, we believe, facilities can be put where we cannot
reach them with existing nuclear or conventional capabilities.
It is the case, we believe, that at least some dictators--I
don't want to suggest any country, I would simply point out
that the popular countries to talk about lately are countries
in which it's clear the leadership, whatever else they value,
doesn't care about the suffering of their people. And their
people are, in fact, victims. So we need to be able to tell
those leaders there is nothing you can do that is beyond the
reach of American power. And, a whole different Department is
spending a whole different set of money on working to improve
that. My job is to say, suppose conventional doesn't work, can
we do something with a nuclear weapon and then, if we can, then
there's the question is it worth both the financial and the
policy cost? It's a perfectly fair debate but I guess I don't
accept the view that it's only worth spending this money if
we're prepared, as soon as we have this, to go out and start
using it casually. I think this is an example of improving the
deterrent, just like the various things, many of them
contentious at the time, that we did during the Cold War, as an
example, of improving deterrent.
Senator Feinstein. I will not belabor it. I appreciate the
time. I profoundly differ with you.
Senator Domenici. You what?
Senator Feinstein. I profoundly differ. I think morally,
ethically, to create weapon systems that are so bizarre and so
catastrophic goes beyond the moral code. I really do.
Ambassador Brooks. Yes ma'am, with the greatest respect,
and I think to have only the ability to destroy cities and kill
people has its own set of problems.
Senator Domenici. Let us proceed. Let us make sure we
understand here where some of us are. But I am profoundly
concerned if we have nuclear weapons at all. I wish we could
get rid of them all. I wish we could find a way that we do not
need them and that we could prove that nobody else would ever
have them, which is going to be the issue, so that we could get
rid of them. I am terribly concerned that the damage that one
of them might do, that we do have, and I am not supporting
anything, ever, that says we should have more nuclear weapons
in our arsenal. I should not say ever but right now we are
building them down, not upward. In fact, we are having a
terrible time building them down as fast as we can because we
cannot get rid of the pollution that is coming out of them. I
mean, we cannot get rid of plutonium fast enough as we destroy
Russian nuclear weapons. We cannot find a way to do it. You are
in charge of one now, we cannot even get them to agree on
something so we can get rid of them, right?
MOX
I am going to just close by saying the biggest change in
American policy, overruling policy since President Carter said
we will build a MOX refinery in America. And we had said no,
never, never. He said, we will build it if the Russians will
build it because we will both get rid of plutonium that way.
Right?
Ambassador Brooks. Yes sir.
Senator Domenici. So we made a profound change in our
policy. I would have never been against the MOX but I mean, the
President's decided against it, I would give you the reasons, I
think you would not agree that his reasons were right. The
reason was to build MOX you enhanced the production of fissile
material to produce bombs. Turned out nobody in the world ever
did it, so probably the fear was not there. So here we come
along and what changes it? The Russians change it because they
are going to do it, we say we will do it. Now we cannot get it
done because we cannot get an agreement, right? That is a tough
one for you.
Ambassador Brooks. That's right, sir.
Senator Domenici. Okay. So, I am on the side of trying to
get rid of this stuff. I do not want them to use it again, I do
not want us running around, leaking around, being transferred
around. So, my record is pretty good on that.
Now, I want to just be parochial and I want to tell you
that I do not like the idea of the Los Alamos schools being
treated differently all of a sudden than they have been for a
long time. If you want to treat them differently, Mr.
Ambassador, then we ought to start treating them differently
and give them an opportunity to be treated differently over a
long period of time. Either buy them out or something be done
elsewhere but just say this year they do not get funded and so
you did not put it in the budget, you know I have to find it
somewhere so I will. But I am just telling you I do not think
it is the right way to do it. And you have to get a team and
let us get started finding out how do we solve this problem,
not just the budget issue.
Z MACHINE
The Z Machine, very quickly, I just want to make sure that
I am correct, that it is being maintained and the little bit of
money that is needed for it is going to be there and that is
moving ahead?
Dr. Beckner. Yes sir.
Ambassador Brooks. Yes sir.
Senator Domenici. And everybody is satisfied with its
performance?
Dr. Beckner. Yes sir.
Senator Domenici. Is it a good piece of equipment for the
price?
Dr. Beckner. Yes sir.
Senator Domenici. Will not take the place of what we
expected NIF to do, right?
Dr. Beckner. No sir. It is not of adequate size to do that.
Senator Domenici. But if NIF fails it may do what a failed
NIF will do?
Dr. Beckner. That's a possibility and we certainly intend
to continue to support that program and to have milestones in
that program so that we can measure its progress.
NUCLEAR NONPROLIFERATION
Senator Domenici. Mr. Longsworth, have you read the ``Wall
Street Journal'' article, how the Pakistani nuclear ring
managed to skirt export laws?
Mr. Longsworth. Yes, I have.
Senator Domenici. Are you receiving adequate international
cooperation in stopping the activities outlined in this
article?
Mr. Longsworth. We are working very diligently on that. In
fact, we've asked for an increase in our budget this year to
address those kinds of issues.
Senator Domenici. You haven't got everything you need yet?
Mr. Longsworth. Well, we hope to if we get this increase
we've asked for in our budget, yes sir.
Senator Domenici. Mr. Ambassador, what is the likelihood
that the liability issue will be resolved in a timely fashion
so we can move ahead with construction so we can get rid of
some of that plutonium that is sitting around in Russia and
America?
Ambassador Brooks. I am hopeful that we will get it
resolved soon but the last 12 years have told me predicting
Russia is risky. And I just don't know. The problem is not in
this country; the problem is in the Russian Federation.
Senator Domenici. Okay. So it is high enough that we ought
to encourage our President, if we can, to ask the Kremlin to
get with it on this one?
Ambassador Brooks. Yes sir.
Senator Domenici. This Libya situation. We added $5
million, I think, in the Senate to initiatives focused on
removing nuclear weapons useable material from volatile sites
around the world. I understand your office was able to make use
of this earmark to quickly respond in the Libyan situation?
Mr. Longsworth. Yes sir. Let me just say, we would not have
been able to respond quickly without that authorization.
Senator Domenici. I am glad we did it. The role your office
and the Department played in removing the nuclear materials,
can you explain that in a minute or two?
Mr. Longsworth. Yes sir. We had three missions into and out
of Libya. The first mission was using the money you just
referred to to immediately remove the core of their nuclear
weapons capability; their nuclear fuel cycle capability. We
removed key components, not all of the components, but the
components that would, if we had not been invited back, have
posed the most serious proliferation concern. The second
shipment was a fairly large shipment which has just arrived
back in the United States of the remaining centrifuge parts.
The third shipment was to remove the HEU fuel, fresh fuel, from
the Tajura reactor. That was sent back to the Russian
Federation. That material was under IAEA safeguards, so it was
accounted for and they were legally allowed to have it, but
they agreed to remove it at our request and it went back to
Russia. It will be recycled back into civilian low-enriched
fuel.
Senator Domenici. Good. Well, Senator, do you have any
other questions?
Senator Feinstein. I have one quick question. When we
discussed, and I will just put it in a general category, the
warhead redesign, the general fixing that may have to be done,
does that come out of any of these programs' budget? The
Advanced Concepts, the Pit, the Earth Penetrator?
Mr. Longsworth. If we look at problems with fixing an
existing warhead that's usually done as part of the Life
Extension Program, which is a separate line item.
Senator Feinstein. That is in another?
Mr. Longsworth. Yes ma'am.
Senator Feinstein. So nothing in this goes for that?
Mr. Longsworth. In general that's correct, ma'am.
Senator Feinstein. Thank you.
Senator Domenici. Thank you, Senator.
Senator Feinstein. Thank you.
Senator Domenici. That is a very good hearing because you
came. Thank you.
Senator Feinstein. Thank you.
Senator Domenici. We will have another big fight, huh?
Senator Feinstein. Oh, I welcome it.
Senator Domenici. The thing is, we get a second round, they
may win it before.
Senator Feinstein. You never know, you never know.
Senator Domenici. See and then ours might not be terribly
relevant because they already won in Armed Services. If they
lose----
Senator Feinstein. Well, we will try with the House.
Senator Domenici. We lose in Armed Services we are in
terrible shape. You will win.
NUCLEAR STOCKPILE REPORT
Nuclear Stockpile Report.
Ambassador Brooks. Yes sir.
Senator Domenici. Mr. Ambassador, I noted in the opening
statement that you talked about it and I am very disappointed
that the Departments of Defense and Energy have not produced
the Stockpile Report as requested. I think the distinguished
Senator who is here because of what she worries about, ought to
be very concerned that we do not have that report. Priorities
of the future seem to be very much dependent upon it. So, Mr.
Ambassador, it is the fault of the government of the United
States that we do not have it, right?
Ambassador Brooks. Yes sir.
Senator Domenici. Should have been done.
Ambassador Brooks. Yes sir.
Senator Domenici. Will it be done?
Ambassador Brooks. Yes sir.
Senator Domenici. When?
Ambassador Brooks. I don't know.
Senator Domenici. Well, that is not good enough.
Ambassador Brooks. I don't want to make promises to the
Senator that I can't keep.
Senator Domenici. Okay. But give me some talk. Are you
working on it? Who is holding it up?
Ambassador Brooks. The Secretary of Defense said it would
be submitted in the spring. Spring started 2 days ago. It is
being worked on, literally, as we speak, but because of the
importance I think this will have to be personally approved by
the President and I can't predict how long that will take.
ADDITIONAL COMMITTEE QUESTIONS
Senator Domenici. Okay. I am going to wrap up the hearing
in just a minute. And Senators that are here or not here that
want to submit questions, please do so. Thank you.
[The following questions were not asked at the hearing, but
were submitted to the Department for response subsequent to the
hearing:]
Questions Submitted by Senator Pete V. Domenici
REVISED NUCLEAR STOCKPILE PLAN
Question. I noted in my opening statement, I am disappointed that
the Department of Defense and Department of Energy have not produced
the stockpile report requested in the fiscal year 2004 Energy and Water
Development bill. I believe this report is critical in establishing the
priorities of the administration. This report was requested to be
delivered with the President's budget. However, that deadline has come
and gone and we still don't have our report. When do you expect that
this committee will receive a copy of this report?
Answer. The Departments of Defense and Energy understand the
importance of completing this plan promptly and providing it to the
Congress. Both departments are working together to complete this
complex task. I anticipate that the plan will be forwarded to the Hill
in the Spring.
Question. We are beginning to put together our budget priorities
and the failure to produce the report will have significant
consequences for your budget priorities. Will you convey that message
back to the Department?
Answer. Yes, sir. I have already done so.
ROBUST NUCLEAR EARTH PENETRATOR
Question. I was surprised to see in the budget request that nearly
$500 million is provided for the Robust Nuclear Earth Penetrator (RNEP)
in out-year funding. I believe many members are concerned that you have
already made a decision on the need for this type of weapon without any
input from Congress. Would you like to clarify what the President's
budget provides for this project and outline the role Congress will
play in the future development of this weapon?
Answer. We have not decided whether to proceed with the Robust
Nuclear Earth Penetrator beyond the 6.2/2A study that is currently
underway. Our fiscal year 2006-2009 funding estimates are only
placeholders within the FYNSP, based on predecisional data and in no
way represent a signal that we intend to proceed with the RNEP. That
study will be competed by the end of fiscal year 2006, and will cost an
estimated $71 million from fiscal year 2003 through fiscal year 2006.
Consistent with section 3143 of the fiscal year 2003 National
Defense Authorization Act, Public Law 108-314, and section 3117 of the
fiscal year 2004 National Defense Authorization Act, Public Law 108-
136, the administration may request congressional approval to proceed
with phase 6.3 (engineering development) in the first quarter of fiscal
year 2007. This request is contingent on the identification of a
feasible and affordable design using either the B61 or B83; the
determination by the Department of Defense that the design meets
military requirements; and the approval of the joint DOD/DOE Nuclear
Weapons Council.
SAFEGUARDS AND SECURITY
Question. Ambassador Brooks the new Design Basis Threat has
elevated the security requirements at DOE and NNSA sites. The
President's budget requests a $106.9 million increase (8.6 percent) in
the Safeguards and Security budget. As a result of the increased
security requirements, we are able to spend less on important research.
TA-18 in Los Alamos is a good example of the need for the NNSA to
consolidate the special nuclear material in safer, better defended
areas. I would like the NNSA to undertake a study that will be the
basis for a plan to develop a clear understanding of our future
security needs and the benefit of consolidating the special nuclear
material across the complex. Can you do this study and report to me on
your findings?
Answer. We have already begun the study you requested on the
benefits of consolidating nuclear materials with a focus on security.
This effort is being conducted jointly by the NNSA and the Office of
the Under Secretary for Energy, Science, and Environment and should be
completed in Fall 2004. I will provide you with the report of this
effort by December 31, 2004. We're also not waiting for the results of
the reports to take action to consolidate nuclear materials as we
identify opportunities to do so for increased security, on efficiency
of security arrangements.
Question. How are you planning to handle the transfer of TA-18 at
Los Alamos?
Answer. The Secretary has directed the NNSA to begin a near term
shipping campaign that will move approximately 50 percent of the Los
Alamos National Laboratory Technical Area (TA-18) Category I and II
Special Nuclear Material to Nevada. This campaign will begin in
September and last approximately 18 months. NNSA will immediately start
preparing the Device Assembly Facility (DAF) to support storage of
these nuclear materials while scheduling packaging and transportation
resources. The movement of these materials will be handled by NNSA's
Office of Secure Transportation. In parallel, the design modifications
to DAF to assume program responsibilities will continue, and the
modifications will be made in the next several years to receive the
additional material to support the associated missions.
Question. What is the timetable for this decision?
Answer. We will begin the shipping campaign this September. Between
now and then Los Alamos National Laboratory, the Office of Secure
Transportation and Nevada personnel will identify, characterize and
pack materials in approved shipping containers for transfer to the
Device Assembly Facility in Nevada.
Question. If TA-18 is moved from Los Alamos, will Los Alamos still
maintain the mission associated with this facility?
Answer. Yes, Los Alamos will continue to perform the vital Category
I and II mission work associated with TA-18 at the Device Assembly
Facility at the Nevada Test Site. LANL will retain security Category
III and IV missions at Los Alamos and TA-18 program personnel will
remain on-site. These people will relocate to DAF, as necessary to
conduct experiments with Category I and II materials. Experiments with
Category III and IV will occur at another LANL location. NNSA and LANL
are working to identify locations for these activities and will issue a
separate ROD pending completion of this assessment.
LOS ALAMOS SCHOOLS
Question. I would like an answer as to why the budget has failed to
provide the necessary and authorized funding for the Los Alamos School
system. You may be interested to know that the $8 million that has been
included in previous budgets makes up a third of the total school
budget. I would also point that many of the scientists who support your
stewardship programs also have strong views about the education of
their children. If you hope to continue to recruit top people to this
Lab, this funding will help achieve your goal. What was the
justification for not funding the Los Alamos Schools or the Los Alamos
Foundation?
Answer. I understand and appreciate the importance that a high
quality education system provides for the recruitment and retention of
quality scientists and engineers at Los Alamos National Laboratory. The
administration however doesn't feel that the President's budget for
stockpile stewardship activities is the proper funding vehicle for this
activity. NNSA recently submitted a report to the Congress on Los
Alamos schools and funding options that could take the place of the
annual authorization and appropriations approach. Option 1 would rely
on the State of New Mexico and the citizens of Los Alamos County to
ensure that adequate funding is available for the schools. Option 2
would reestablish a charitable foundation funded by annual
appropriations for a limited period of time so that Los Alamos Schools
would receive approximately $8 million annually from the endowment.
Finally, Option 3 would allow the M&O contractor for LANL to support
the school system by modifying the provisions in Appendix N of the
contract. Currently under Appendix N, Los Alamos provides a few million
dollars to the school systems in the vicinity of Los Alamos County.
RUSSIAN HIGHLY ENRICHED URANIUM (HEU)
Question. Mr. Longsworth, the administration has consistently
identified the need to reduce the hundreds of metric tons of Highly
Enriched Uranium stocks in the Russian Federation as a critical part of
our non-proliferation efforts. In fiscal year 2003, the committee
provided $14 million for the Accelerated Materials Disposition (AMD)
Program to meet those commitments. However, no progress has been made
since that appropriation and your fiscal year 2005 request eliminates
funding for the AMD Program. Therefore, the only current U.S./Russian
program to address the dangerous stockpiles of HEU is the existing HEU
agreement and the research reactor initiatives. This later projects
result in the equivalent of one-tenth of a metric ton per year.
Unfortunately, this will not have the address the long-term strategic
objectives of HEU disposition. Has the administration abandoned its
efforts to accelerate reduction in Russian HEU stockpiles beyond what
is covered in the HEU deal?
Answer. No, the administration has not abandoned its efforts to
accelerate the reduction of Russian HEU stockpiles. Several initiatives
were identified by the Experts Group on Nuclear Materials, with two
initiatives approved for immediate action that are being pursued: (1)
Purchase of low enriched uranium (LEU) derived from HEU to be used as a
U.S. strategic LEU reserve, and (2) Purchase of HEU for use in U.S.
research reactors. We have been pursuing these initiatives with varied
success, and some progress has been made.
For the first initiative, we have been advocating expansion of the
HEU disposition from Russia by blending down additional HEU to LEU and
then using this LEU to establish a U.S. Strategic LEU Reserve so as not
to adversely affect the current enrichment market. Because of House
budget concerns regarding the up-front cost of the strategic reserve
approach, Congress did not fund this initiative in fiscal year 2004.
Following the guidance of the Appropriations Committee, the funding for
these initiatives has been subsumed into the base program for Reactor
Fuel return. Concurrently, in order to address Congressional concerns,
DOE is developing a more comprehensive approach that would make these
initiatives acceptable as separate line items. As part of this
development, we are also addressing the long-term strategic objective
that Ambassador Brooks has requested that includes both a follow-on
strategy for negotiating the extension of the HEU purchase agreement
beyond 2013 as well as interim strategies for expanding beyond the 500
MTs included in the current agreement.
With respect to the second initiative, the contract with the
Russians for the purchase of HEU for the research reactor initiative
has been negotiated with only two points of contention remaining: (1)
the price to be paid for the HEU material; and (2) transportation
method. The price problem exits because there is no commercial market
basis for HEU sales that can be used to establish a fair price.
Currently negotiations are underway to establish a fair price. The
transportation concerns should be resolved without much delay once
price is agreed upon.
In addition to the specific purchase contract for HEU for U.S.
research reactors, we are still engaging the Russians in developing the
framework for accelerated disposition of HEU in the form of a
Memorandum of Understanding that would act as an umbrella agreement for
additional purchases or other initiatives. It should be noted that, in
addition to our direct actions on these initiatives, we are also
cooperating with and providing appropriate support to other
organizations to engage the Russians in identifying other options that
are acceptable both to the Russian Federation and the United States.
As you can see, we have not abandoned our efforts to accelerate
reduction of Russian HEU stockpiles, but we have encountered obstacles
associated with the economics of these approaches that we are working
to resolve. We appreciate the continued support of Congress in these
endeavors.
In addition to the two programs you have mentioned, my office also
includes the Material Consolidation and Conversion (MCC) Project, which
supports the conversion of HEU, which is not from weapons, to LEU. This
HEU is excess to the needs of the sites where it is currently located
and is transferred to one of two down blending sites in Russia for
conversion to LEU. The MCC Project began in fiscal year 1999 and to
date has supported the down blending of almost 5 metric tons of HEU. We
are currently engaging the Russian Federation in discussions to
increase the rate of conversion under the MCC Project.
Question. Could more be done to remove more HEU material from
poorly defended facilities in Russia?
Answer. Yes, more can be done to remove additional HEU material
from poorly defended facilities in Russia. One part of this effort
would be to attempt to purchase more material. This aspect was
discussed in the previous question.
The MPC&A and MCC programs are other avenues that could be
followed. The MCC Project was designed to support the transfer of HEU
from less secure sites in Russia to more secure sites and to down blend
that material to LEU. We are actively engaged with the Russian
Federation to try to accelerate that process.
MOX PROGRAM
Question. I am deeply concerned about the future of the Russian/
U.S. MOX program that will remove 34 metric tons of plutonium from the
respective stockpiles. I have personally contacted Secretary Powell to
urge the State Department to find an acceptable resolution in order to
keep this program on track.
It is my understanding that negotiations regarding the liability
concerns have yet to be resolved. What is the likelihood that the
liability issue will be resolved in a timely fashion allowing the
construction of the Russian and U.S. facilities to go forward in the
near future?
Answer. The United States and Russia have yet to resolve liability
protections that will be needed for the U.S. Government and its
contractors for plutonium disposition work in Russia. If this issue
cannot be resolved in the near future, the start of construction of the
Russian MOX program will be further delayed. Because the United States
and Russian programs are to proceed in parallel, any further delays in
the Russian effort will mean additional delays in the U.S. program as
well. However, this would in no way indicate a lessening of the
administration commitment to this effort.
Question. How will the recent reelection of President Putin affect
these negotiations?
Answer. Given that President Putin will not fully stand-up his new
government until May 7, it is too early to comment definitively on how
the reorganization of the Russian Government will affect these
negotiations.
Question. Ambassador Brooks, are you aware of any changes within
the administration including the State Department or within the White
House that might indicate a change in policy or a reluctance to
finalize this deal?
Answer. I believe that the administration is committed to moving
forward with this important nonproliferation program. The liability
issue is being addressed at the highest levels of the government.
LOWER LIABILITY STANDARD
Question. I understand that Russia has signed a liability agreement
with our G-8 partners that does not provide the same level of
protection as the United States is seeking as part of the Cooperative
Threat Reduction plan. How is this affecting the negotiations?
Answer. Russia and some of our G-8 partners have accepted, in
another context, a less comprehensive liability provision than what the
United States has under the Cooperative Threat Reduction plan.
Specifically, this provision does not cover the liability of an
individual who intentionally causes a nuclear accident or the liability
resulting from a non-nuclear accident. Russia has been insisting on a
similar reduced scope for the liability provisions for the MOX program.
EMERGING THREAT--PAKISTAN
Question. The Nonproliferation budget seems to assume a general
status quo in future funding. It reflects an expectation that our
primary nonproliferation concern will remain Russia and its former
republics. However, in light of the news over the past several months
regarding Libya, Iran and Pakistan, are you concerned that this budget
places too great a focus on Russian stockpiles and doesn't adequately
fund efforts to address proliferation in other countries?
Answer. The budget appropriately focuses on Russia where most of
the weapons-usable material of proliferation concern is located.
However, it also includes funds for activities in other countries. As
those latter activities develop we will revisit the appropriate balance
between work in Russia and work outside of the former Soviet Union
(FSU).
Question. Does this budget adequately provide for this new reality
and how will your office respond to these threats?
Answer. We are working very carefully to develop prudent and
effective activities that address proliferation concerns outside of the
FSU, and will carefully monitor these activities to ensure that they
are adequately funded.
Question. Would additional resources accelerate your ability to
contain the emerging proliferation threats?
Answer. As our work outside of the FSU develops, we will certainly
keep you informed about its progress and whether additional funding
would be helpful. We will continue to work with the administration and
Congress to assess priorities and develop budgets.
Question. Mr. Longsworth, on the front page of the Wall Street
Journal this morning is an article that explains how Pakistani
officials were able to avoid export laws that prohibit the sale of
material and technology that can be used in the development of nuclear
weapons. This article details a very complicated scheme that took
advantage of weak export controls in various countries to avoid
detection. It is obvious from this article your job of tracking and
preventing the proliferation of technology and material is a terrific
challenge.
Mr. Longsworth, have you read this article and do you agree with
the characterization of the Pakistani efforts?
Answer. Yes. It is a fair characterization of what occurred, as far
as we know it. Though it's clear that A.Q. Khan was deeply involved
with the procurement and supply effort, it is not known if his actions
were in some way associated with his official duties or if he was
abusing his official position, knowledge, and connections for personal
benefit only. In any event, the United States and Pakistan are now
dismantling the A.Q. Khan network responsible for proliferating nuclear
weapons-related technologies, and we are working with our interagency
colleagues and Pakistan on steps to bring its export control system in
line with international standards.
Question. Also, are you receiving adequate international
cooperation in stopping the activities outlined in this article?
Answer. Yes. We have underway an increasingly coordinated
international effort to detect and destroy these proliferation
networks. We are working in the Nuclear Suppliers Group to tighten up
controls on sensitive materials and technologies. We are also working
on enhanced targeting techniques and more in-depth training of
inspection and enforcement personnel and conducting more industry
outreach to sensitize the private sector on the importance of some of
these technologies.
In addition, we have recently started export control assistance to
the government of Pakistan.
LIBYA
Question. Last year the Senate added $5 million for initiatives
focused on removing nuclear weapons-usable material from vulnerable
sites around the world. I understand that your office was able to make
use of this earmark to quickly respond to Libya's decision to open
their weapons program to outside review. Please explain the role your
office and the Department of Energy played in removing the nuclear
threat from Libya.
Answer. The Department of Energy (DOE)/National Nuclear Security
Administration (NNSA) is participating in an interagency effort to
remove materials and equipment from Libya and assist the Libyan
government with its efforts to eliminate its weapons of mass
destruction programs. We have been involved in three removal missions
to date. For the first two missions, a U.S. team composed of
representatives from DOE/NNSA headquarters staff, our National
Laboratories, and the interagency community helped remove nuclear
materials, equipment (such as finished components for centrifuges,
specialized materials and manufacturing equipment for centrifuge
construction, as well as components for a uranium conversion facility),
and highly sensitive nuclear weapons design documents from Libya.
The third mission in Libya repatriated to Russia approximately 17kg
of unirradiated highly enriched uranium (HEU) fuel from a research
reactor in Libya. Coordinated with the Russian Federation and the
International Atomic Energy Agency (IAEA) under the Russian Research
Reactor Fuel Return program, this effort has been, and continues to be,
a crucial part of our efforts to secure at-risk weapons usable nuclear
materials around the world.
The funding Congress provided to NNSA was critical for our work in
Libya. It gave my organization the flexibility and capability needed to
support the mission to assist Libya in its effort to rid itself of
weapons of mass destruction and the ability to create them. We continue
to need authority and flexibility to carry out our mission outside the
former Soviet Union and not constrain our ability to address the
threats at targets of opportunity.
This swift movement suggests the seriousness with which the U.S.
Government treats proliferation threats. Congressional support is
fundamental to the success of these efforts. The expedited removal of
this material from Libya certainly advanced the U.S. national security
goals and represents a tremendous success for our nonproliferation
efforts.
RUSSIA--UNCOSTED BALANCE & ACCESS ISSUES
Question. It appears from your budget that there remain large
amounts of uncosted balances associated with the Russian programs. I
assume that these balances remain due to the fact that your Russian
counterparts are unenthusiastic about allowing U.S. teams in to either
dispose of or secure their precious nuclear stockpile. A GAO report
from last year noted that DOE was having better luck than DOD in
gaining access to sites that contain special nuclear material. Has
there been any improvement with relations that will allow you to secure
Russian material?
Answer. We have made significant progress with the Russian Ministry
of Atomic Energy (MinAtom), especially at ``civilian'' facilities with
less stringent access restrictions imposed by MinAtom. Barring any
unanticipated delays, we expect to complete the security upgrade phase
of our cooperation at four sites within the next 16 months Novosibirsk
Chemical Concentrates Plant (NCCP), Institute of Physics and Power
Engineering (IPPE), Research Institute for Atomic Reactors (RIAR),
Lytkarino. This will mark a significant step forward for our program.
We are making progress at some of these sites--contracts for
upgrades have and will continue to be signed at places like Tomsk,
Krasnoyarsk-26, and Mayak. We will continue to focus our efforts on
providing upgrades to sites containing materials of concern to which we
have access in order to reduce the threat as quickly as possible, while
we negotiate access to or a suitable alternative assurance for the
remaining weapons sites. Additionally, we are working on a pilot
project that could improve our access to sensitive MinAtom facilities.
With the Ministry of Defense, we have signed comprehensive
contracts for the last two Navy warhead sites, which finish the major
contracts upgrading 50 Navy-related sites--39 warhead sites and 11 fuel
sites. We are cooperating with the Strategic Rocket Forces to upgrade
the security of a total of 17 approved nuclear sites located at 11
different Intercontinental Ballistic Missile (ICBM) bases. Currently,
we have contracts in place (varying from vulnerability assessments to
rapid upgrades) for the first 13 sites. We have had fewer access issues
with the Ministry of Defense and cooperation continues to be very good.
These improvements in our relations with the Russians are allowing
our work to proceed and begin a drawdown of our uncosted balances as
security upgrades to the Ministry of Defense and MinAtom facilities are
completed over the next several years.
Question. How and when do you expect to commit the available
appropriated balances?
Answer. As a result of a number of recent successful contractual
negotiations, we expect to commit the majority of International Nuclear
Materials Protection and Cooperation (MPC&A) non-Megaport appropriated
balances by the end of this fiscal year. With the Russian Ministry of
Defense, we have signed comprehensive contracts for the last two Navy
warhead sites, which finish the major contracts upgrading 50 Navy-
related sites--39 warhead sites and 11 fuel sites. We are cooperating
with the Russian Strategic Rocket Forces to upgrade the security of a
total of 17 approved nuclear sites located at 11 different ICBM bases.
Work at sensitive MinAtom facilities continues, but the pace is limited
mostly by the need to negotiate access to facilities. We are making
progress at some of these sites. Contracts for upgrades have and will
continue to be signed at places such as Tomsk, Krasnoyarsk-26, and
Mayak. Agreement has been reached with Greece and we are nearing
agreement with Kazakhstan to implement a Second Line of Defense program
in those countries. In Kazakhstan alone we expect to complete
installations of radiation detection equipment at approximately 20
sites over the next year.
The ability to commit funds for the Megaports program has so far
been limited by the pace of successful negotiations with host
countries. We are currently negotiating with several countries and
expect those negotiations to result in a number of agreements, which
will allow us to commit funds for the installation of radiation
detection equipment at these ports.
As of March 31 the current total funding for the MPC&A program with
carryover, is $655 million. This consists of Start of Year uncosted
balances of $378 million plus Year to Date Approved Funding Profile of
$277 million. Of the $655 million in MPC&A, $124 million is allocated
to the Megaports program and $75 million to the Radiological Threat
Reduction (RTR) Program (Radiological Dispersion Devices and MPC&A
Activities in Iraq). Both Megaports and the RTR programs are less than
2 years old, and are working feverishly to ramp up.
We consider that the real measure of funding is commitments to
contractors, that is, signed contracts should be considered ``costed''
as the U.S. Government has ``committed'' to provide funding for
deliverables that are underway. Given the length of time it takes to
complete sensitive nonproliferation work in foreign countries, we have
begun to track funds that have been committed but not yet costed as a
more accurate measure of true requirements. We have made changes to the
DOE accounting system to track these obligations and expect our first
preliminary report of uncosted commitments in coming weeks. We expect
that the April 2004 report to Congress on uncosted ``commitments'' will
show that our true uncosted balances are under control.
Question. Are there alternatives that the Russians have suggested,
other than providing full access to sensitive facilities, which may
accomplish U.S. objectives?
Answer. We are currently working with the Russians on a pilot
project that could improve our access to sensitive MinAtom facilities.
This project incorporates a new strategy for access that was negotiated
by the MPC&A acceleration working group, convened by Secretary Abraham
and Minister Rumyantsev last year. If this pilot effort is successful,
it is anticipated that this will allow MPC&A upgrades to be carried out
at Russian sites that were previously too sensitive to support
cooperative work with the Department of Energy to improve nuclear
material security. The first site visit of this project has been
completed and contracts have been signed. A second visit will take
place early this summer.
COOPERATION WITH OFFICE OF NUCLEAR ENERGY
Question. The current light water reactor fuel cycle in widespread
use was developed prior to today's emphasis on safeguards to prevent
proliferation from the civil nuclear energy cycle. The International
Atomic Energy Agency (IAEA) has been forced to establish new safeguards
into an existing cycle and into the existing facilities. The AFCI
program is exploring new options for fuel cycles that would reduce
waste, enhance more efficient use of nuclear fuel and reduce
proliferation concerns.
Do you concur that review of proliferation aspects of new fuel
cycles should be coordinated among the Department of Energy's (DOE)
Office of Nuclear Energy and the National Nuclear Security
Administration's (NNSA) Nuclear Nonproliferation?
Answer. Yes, in fact we are coordinating just such an effort
between Office of Nuclear Energy, Science and Technology, and the
National Nuclear Security Administration. Our joint Proliferation
Resistance and Physical Protection (PRPP) Working Group is an excellent
example of our coordination. Under PRPP, we are bringing together
experts from all facets of the nuclear fuel cycle. Beyond the
safeguards and physical protection experts, we also are engaging the
engineers who design all the components and processes of the entire
fuel cycle. Such an approach will ensure that the ideas to enhance PRPP
actually will be applied and used to reduce proliferation concerns.
REMOVAL OF ADDITIONAL HIGHLY ENRICHED URANIUM (HEU)
Question. There are a number of programs within your office
including the Reduced Enrichment Research and Test Reactor Program
charged with developing technologies to reduce the threat of
proliferation and increase the amount of low enriched uranium that is
used in research reactors worldwide. What barriers exist to more rapid
progress on removing HEU from research reactors?
Answer. The Reduced Enrichment Research and Test Reactor (RERTR)
Program has a number of technological and political limitations that
slow the speed by which progress can be accelerated, regardless of the
amount of funding provided for the program. The development of low
enriched uranium (LEU) fuels suitable for conversion of reactors
requires the following steps, which comprise the primary challenges
facing the program: analyses of the performance and safety
characteristics of research reactors undergoing conversion;
determination of the detailed technical specifications of the LEU fuel
assemblies for each reactor; and regulatory approval of the
conversions.
Once LEU conversions are determined to be technically feasible,
adequate incentives need to be identified to make the conversions
happen. Countries that have HEU fuel stockpiles are often aware that
they have a ``valuable'' commodity and it can be difficult to persuade
them to release the fuel. Incentives are often case-dependent and could
include, for instance, removal of spent fuel, supply of fresh LEU fuel,
or facility upgrades. Negotiated government-to-government agreements
may be required to implement the incentives.
Question. Are you resource constrained?
Answer. Yes, in that the facilities, equipment, and trained
personnel that can perform the necessary fuel development are limited.
We are actively addressing this situation through international
collaboration to study the characteristics of the new LEU fuels to
determine if there are any limitations to the use of the proposed fuel.
RESEARCH & DEVELOPMENT (R&D) FUNDING
Question. The Proliferation and Verification R&D account has been
reduced by $11 million. This account performs a critical role in
developing nuclear detection technologies, including space-based
surveillance. Our ability to detect, monitor and verify the transfer,
production or testing of special nuclear material will be critical to
preventing proliferation of weapons of mass destruction and putting
U.S. citizens at risk. Why has this account been reduced and will this
budget cut allow for the research, testing and deployment of new
detection technology?
Answer. Our budget request for the Nonproliferation and
Verification R&D Program is, in fact, $16 million higher than our
request in fiscal year 2004. This reflects, in particular, the need to
begin the development of new space-based nuclear explosion monitoring
sensors to replace the capability on the Defense Support Program
satellites which are due to be retired before the end of the decade.
In the appropriation for fiscal year 2004, the Congress added $29.5
million to our request for the R&D program for critical research in
nuclear and radiological national security and for particular projects
important to the members. Our fiscal year 2005 budget request was
formulated last fall, before we knew the details of the Congressional
action on our fiscal year 2004 request. Consequently, that result did
not figure into the baseline level for fiscal year 2005 funding
request. We appreciate the confidence expressed by the Congress in the
importance of our R&D program.
Question. If this account received level funding at the fiscal year
2004 level, how would you spend the additional funding and how would it
assist in detection?
Answer. We agree that the need to improve the Nation's ability to
detect proliferation and testing of nuclear weapons and materials is
becoming ever more important in the world today given the proliferation
challenges facing us. If the level appropriated by the Congress for our
R&D program in fiscal year 2004 were continued, we would be able to
pursue further demonstration of new detection methods and begin to
realign our program to address the expanding proliferation threat. We
would focus our research to develop methods to more confidently detect
and characterize enrichment of uranium and reprocessing of plutonium in
areas of concern around the world. We would also increase our effort to
provide the scientific basis for attributing the source of any detected
nuclear materials.
We would also seek to accelerate our nuclear explosion monitoring
R&D program by achieving our goals to calibrate new seismic monitoring
stations sooner and enable our partnering agencies to meet their
monitoring requirements. We also anticipate a change to those
requirements in the near future, to achieve a much lower threshold of
yield to detect any nuclear explosions. At this time, this challenge
would be addressed only at a lower level of effort until the seismic
calibration program is completed.
INTERNATIONAL NUCLEAR FUEL MARKETS
Question. There are a number of utilities that are concerned about
the amount of available nuclear fuel there is in the international
market. Recently, several companies have found their contracts with
Russian suppliers are not being honored and they are forced to find
other sources to meet their fuel needs. As a result of this tight
market, fuel prices are rising and there are few opportunities to
increase production. In fact, the limited number of nuclear fuel
vendors makes OPEC look like a free and open market. Are you familiar
with these concerns and, if so, are there any opportunities in either
the U.S. or Russian stockpiles of HEU that would provide an opportunity
to down blend in order to add more supply to the market?
Answer. We are familiar with these concerns and have been
monitoring the situation closely. I believe the question should address
the supply situation for natural uranium, not fuel-grade low enriched
uranium, of which there is no shortage. Tight supplies of natural
uranium feed are responsible for the price increases. The connection is
that utilities must provide natural uranium feed to the fuel supplier
in order to get fuel.
Supplies into the natural uranium market were interrupted when the
Russian supplier Techsnabexport (Tenex) cut off supplies of natural
uranium to Globe Nuclear Services and Supply (GNSS) as of January 1,
2004. The problem was not only the cut-off of supply to GNSS but the
short notice provided by Tenex. Tenex notified the world on November 3,
2003, just 2 months prior to the cutoff, that supplies under contract
to GNSS would not be honored. As a result, beginning in January 2004
GNSS has been unable to supply natural uranium under contracts to U.S.
utilities.
The Department of Energy and the U.S. Government have communicated
to Russia our concern on the possible supply shortfalls to U.S.
utilities. In that regard, Secretary of Energy Abraham was informed by
former Minister, now Director Rumyantsev of the Russian Atomic Energy
Agency, that Tenex is now in negotiations with several U.S. utilities
to supply uranium with a view to resolving the GNSS shortfall. DOE also
understands that the uranium would be provided at the same prices and
delivery times as under original contracts with GNSS.
Unfortunately, the Honeywell facility in Metropolis, IL, which is
the only U.S. facility for converting uranium to the gaseous form for
the next stage of uranium processing (i.e. enrichment), had to cease
production on December 22, 2003, due to an accident. It appears that
Honeywell has implemented procedures and other changes at the plant, so
that the Nuclear Regulatory Commission could allow the plant to resume
operations, which have already begun the process of re-starting. With
that and the supply of natural uranium now being negotiated with Tenex,
we expect balance to be restored to the natural uranium market.
Nevertheless, it appears that the market is coping with the
temporary supply shortfall. We suspect that utilities have exercised
provisions for supply flexibilities in their contracts with uranium
vendors to alleviate at least some of the shortfall. The Department, of
course, continues to closely monitor the situation.
Since this is primarily a commercial, not a non-proliferation,
issue, I would suggest that the Office of Nuclear Energy, Science &
Technology or the Office of the Undersecretary could provide further
details.
NATIONAL IGNITION FACILITY
Question. Dr. Beckner, I understand that NIF is still at least 6
years and over $1 billion away from completion of this project. It is
accurate to say that NIF is both the largest laser, and the most
expensive diagnostic tool in the NNSA stockpile. When we develop any
technology, we need to ask ourselves--is the outcome worth the cost? If
you don't achieve ignition, the American people have purchased a laser
that is it 25 times more expensive than the Z machine at Sandia. I
think we need to understand that the project is viable before we spend
billions more over the life of this program. How much money are you
willing to spend to achieve ignition and at what point would you say we
have spent too much?
Answer. The NIF Project is on schedule for completion at the end of
fiscal year 2008. Our plan, as outlined in the project data sheet,
shows the funding required in fiscal years 2005-2008 to complete the
project is approximately $867 million, a figure that has not changed
since the present baseline was approved in September 2000.
NNSA is developing an integrated activation and early use plan for
NIF that provides for first ignition experiments in 2010. This advance
in the ignition date has been made possible by the strong technical
advances in the Inertial Confinement Fusion program. Recent simulations
have shown that it is possible to develop capsules that can be filled
using a simple fill tube instead of a high pressure diffusion system.
The fill tube system is simpler and less costly than the currently
planned diffusion method, and can be developed sooner. Hence fusion
ignition can be attempted earlier with this new fill tube approach. A
1995 review of the ignition program concluded the probability of
ignition on NIF was 50 percent or greater. Our confidence in
demonstrating ignition on NIF has increased since then. The NIF
activation and early use plan will be reviewed by the Defense Sciences
Board.
Completing the NIF Project is a key step in achieving ignition. In
order to pursue the experimental campaign needed to support pursuit of
our goal of obtaining ignition in fiscal year 2010, there are many
program activities that must be conducted. Our total budget for
Inertial Confinement Fusion (ICF) Program activities (not including the
project), as outlined in the FYNSP, is approximately $2,046 million
over the period fiscal year 2005 through fiscal year 2010. Of this
amount, approximately half is directly related to national efforts
aimed at our goal of achieving ignition utilizing the NIF. The balance
supports operation of other facilities (such as Z) and our non-ignition
stewardship activities.
We fully recognize the magnitude of the investment we are making in
the ICF area, and are convinced that it is the appropriate course of
action to achieve our ignition and stewardship missions.
We would be pleased to supply additional details on the break out
of the inertial fusion budget elements for fiscal year 2005.
Preliminary plans also exist for fiscal year 2006-2010.
Question. Would you be willing to focus on solving the most
challenging technical problems such as the cryogenic targets and
perform a thorough testing on a full cluster of 48 lasers before you go
forward as currently planned?
Answer. In pursuing the goal of ignition in 2010, we must address
many challenges. Among these are the design and manufacture of the
ignition targets, development of cryogenic target handling capability,
and completion of the NIF in fiscal year 2008. Our current plans
provide the correct balance, within the FYNSP budget, for addressing
each of these challenges. In addition, we are currently developing a
NIF Activation and Early Use Plan that will define the specific path
towards ignition in more detail. We anticipate having this plan
reviewed by the Defense Science Board this summer, and will finalize
the document after receiving their input.
The performance of the NIF laser system is being continuously
evaluated. Data from the initial quad of four laser beams has already
demonstrated that on a per-beam basis, the facility meets its design
requirements. In addition, we have used the diagnostics and target
systems that are being developed in parallel with the NIF laser project
to successfully demonstrate the facility's capability of performing
sophisticated experiments, and to make progress toward the Stockpile
Stewardship Program's important high energy density physics and
ignition goals. We intend to continually test facility's performance as
additional beams are activated, and perform increasingly more difficult
experiments with those laser beams.
While having a full cluster of 48 beams operating on NIF will be
useful to high energy density physics, the placement of the beams will
not allow many important ignition experiments to be conducted. All the
beams from the same cluster enter the NIF target chamber from the same
quarter of the chamber, essentially coming from the same direction.
This is desirable for high energy density physics, and enables
important experiments to be performed in this area. For example, planar
hydrodynamics experiments will be performed in late 2004 to support
validation of 3D ASC computer codes; equation of State experiments will
be performed in late 2005; and radiation hydrodynamics experiments will
be performed in late 2006. However, this configuration does not provide
the symmetrical target illumination required to do the compression
experiments required to investigate ignition. Consequently, we do not
foresee any added value to placing a hold point at the completion of
the first cluster of 48 beams. In fact, such a hold point would likely
lead to schedule delays and cost increases while making the goal of
ignition in 2010 impossible to achieve.
FIRST CLUSTER-LASER INTEGRATION
Question. The fiscal year 2005 budget specifies that NIF ignition
has been delayed until 2014 gives me great concern regarding this
project. Delaying the ignition start date is contrary to news that the
project is ahead of schedule. I understand that laser installation is
18 months ahead of schedule and the Beam Light Infrastructure was
achieved nearly 3 years ahead of schedule. As a result of these
conflicting statements, I am very skeptical of actual status of NIF. To
date, $2.5 billion has been spent and another $1 billion is required
before we know whether or not this project will work. I don't share
this all-or-nothing attitude, because the costs are too high. I believe
we need a more measured approach to address the significant technical
challenges that lie ahead. George Miller, the NIF Associate Director,
has stated that the most significant technical challenge he has is the
full integration of the lasers. I believe the first cluster, which is
48 lasers or one-quarter of the total, would certainly give a clear
indication of whether full integration is feasible. Dr. Beckner I would
like you to put together a budget and schedule that will accelerate the
installation and testing of the first cluster in fiscal year 2005. Can
you do that?
Answer. I am very much aware of the committee's determination that
the program to achieve ignition remains on target. I've met with the
staff of this committee as well as the other three committees to
clarify our recent decisions to change course in order to pull back the
ignition target to 2010, as opposed to 2014. We've done that because
all of the committees have a very strong view that we must maintain
that schedule. We had allowed the target date for ignition to move out
because of funding priorities in other elements of the program not
because of a reduced commitment to ignition.
Successful completion of the NIF project on its current baseline
schedule is only one of the elements necessary to achieve our goal of
ignition in 2010. The project has re-sequenced some of its work to both
accomplish it more efficiently, and to allow early activation of a quad
of four laser beams. This re-sequencing has resulted in several major
project milestones being completed well ahead of schedule, while the
performance of the first quad of beams has provided us with a
demonstration that the fundamental design is sound, as well as
providing a basis for fine tuning component designs prior to initiating
large procurements. We continue to monitor the project closely, and are
satisfied that it is on schedule for successful completion in
accordance with its approved baseline.
I have discussed the feasibility of accelerating completion of the
first cluster of 48 laser beams into fiscal year 2005 with Dr. Miller.
At this stage in the project and within the current baseline and
funding profile, procurement logistics, and lead times limit our
ability to further re-sequence work and selectively accelerate
milestones. Further we do not see any way to pull the first cluster
milestone back as far as fiscal year 2005. However, if the committee
would like to see an alternative schedule which accelerated
installation and testing of the first cluster, which includes a modest
suite of ``proof of principles'' experiments and which minimizes but
could not eliminate impact to the ignition campaign schedule, we will
develop such a schedule for your consideration.
CRYOGENIC TARGETS
Question. The cryogenic target for the NIF system is a component
the Department has deferred working on for several years. The
University of Rochester has been working on the only cryogenic target
in the world and it has been an enormous challenge. As I understand it,
your office is currently considering two technology options. One is
similar to the Omega Laser target developed at Rochester and a second
is a theoretical option you believe will save NIF tens of millions of
dollars and 4 years using a beryllium capsule. However, until this
problem is solved, ignition will not become reality. Like laser
integration, I believe you should focus your staff and budget on
resolving the enormous challenges associated with the cryogenic
targets. What is your plan and timetable to address the challenges
associated with cryogenic targets?
Answer. A cryogenic ignition target consists of a capsule filled
with fusion ``fuel'', and a surrounding cryogenic system which holds
the capsule accurately at temperatures near absolute zero. Research on
cryogenic ignition targets has been a major component of the ICF
Program since its inception. We have developed a wide variety of
ignition capsule designs, and numerous aspects of the performance of
these capsules have been validated via experiments on the Nova and
Omega lasers and elsewhere. We have made strong progress on cryogenic
systems. We have demonstrated much of the required technology, and a
complete, integrated cryogenic system is operational at Rochester. The
Rochester system provides valuable insight for NIF. The Rochester
cryogenic system uses a high-pressure chamber to diffuse gas into the
capsule.
Our plan for NIF cryogenic ignition targets has three major
components. First, we will continue our national cryogenic target
technology development program. This program has demonstrated
impressive results in the past several years, particularly in the areas
of target fabrication and characterization. Secondly, we are planning a
cryogenic system for NIF that uses a thin tube to fill the capsule with
fusion fuel. This ``fill-tube'' cryogenic system will be completed in
2009 and used for ignition experiments in 2010. A simpler pre-ignition
cryogenic system will be completed in fiscal year 2006. This fill-tube
system will ultimately be modified to allow operation with all types of
ignition targets, including the diffusion filled targets used at
Rochester. Finally, we are planning experiments and calculations to
refine the design for fill-tube ignition targets. Note the fill-tube
effort is not based on theory alone; fill-tubes have been used
extensively in other areas of the ICF Campaign and the stewardship
program, and we will draw upon this experience in preparing the first
ignition experiments.
Question. Are you planning to draw on the available expertise at
the national labs to solve this problem and will you seek to have one
of the labs validate the technology and design?
Answer. Yes, as part of the national planning process for the ICF
Program, all ICF participants are committed to leading technical
efforts within the context of participation in an integrated program.
This will continue to be the case for the cryogenic ignition target
program. Lawrence Livermore National Laboratory will lead the
construction of the NIF cryogenic target system and play a major role
in ignition capsule design. Los Alamos National Laboratory will do
independent calculations of the fill-tube approach, and in addition the
material science capabilities at Los Alamos will be brought to bear on
key questions related to ignition target fabrication. The University of
Rochester will provide valuable input to the NIF cryogenic system via
cryogenic experiments at OMEGA, and with the Naval Research Laboratory
will also examine fill-tube target designs applicable to ``direct
drive'' inertial fusion. General Atomics is focused on specific aspects
of target fabrication and has experience in cryogenic systems. This
national approach has proven very effective in advancing the
technological state-of-the-art and providing innovative solutions as
well as effective peer review.
OMEGA
Question. Will you begin to test the beryllium target design on the
OMEGA system as soon as possible to get initial data to know if you
have a viable target?
Answer. Lawrence Livermore, Los Alamos, and Sandia have been
conducting an extensive series of ignition-related experiments at OMEGA
since the 1999 shutdown of Livermore's Nova laser. We expect that the
OMEGA laser and the early experimental capability available at NIF will
continue to be of great benefit as we move toward ignition. Experiments
at OMEGA and NIF will be an integral part of our risk mitigation
strategy. Both beryllium and plastic targets will be examined. These
experiments will be used to validate advanced simulation tools and
thereby refine our target designs for the 2010 ignition campaign.
ESTABLISHING SCIENTIFIC MILESTONES
Question. Dr. Beckner, following the re-baselining of the NIF
program in 2000, DOE agreed to specific milestones for the construction
project. The Defense Authorization for 2002 requires that the
Administrator of the NNSA notify Congress for every level 1 and level 2
milestones that are achieved and a full report if a milestone is
missed. However, that reporting requirement is only for construction
and assembly milestones and doesn't apply to any scientific or
programmatic milestones. In fact, there aren't any programmatic
milestones by which to base NIF's success or failure as a scientific
tool. I believe it is important that NNSA develop specific milestones
by which Congress can judge this project. This document should also be
peer-reviewed complex-wide for input on the scientific and research
goals. Can you develop these scientific R&D milestones and provide to
Congress such goals by this June?
Answer. I fully agree a defined set of R&D milestones will provide
insight into the success of NIF as a scientific tool. Experiments which
could only be performed on the NIF have already been conducted and will
continue to be performed during the commissioning of subsequent laser
beams. In addition, we are currently developing a NIF Activation and
Early Use Plan that will define the specific path towards ignition in
more detail, including the scientific milestones we will achieve. We
anticipate having this plan available in draft by the June time frame
so that it can be reviewed by the Defense Science Board this summer. We
will be pleased to provide you with the draft document, but request
that you allow us to complete the external peer review process and
incorporate the input from that review prior to finalizing the plan and
beginning to report to you on our progress against it.
Z MACHINE
Question. Dr. Beckner, Sandia National Labs currently operates the
most powerful energy source of X-rays in the world. I think that anyone
familiar with this machine would agree that Z has been a very cost-
effective workhorse of the stockpile stewardship program providing
important data from high energy density experiments as well as
possessing great potential for inertial confinement fusion research. We
are turning away important research, because we haven't provided the
financial support. I can certainly think of a project that could be
used to provide the needed funding to expand the research operations
and capabilities of this important scientific tool. Do you share my
belief that the Z-machine is underutilized and that we are foregoing
important research by not expanding to a second shift and increasing
operational funding?
Answer. The Z pulsed-power facility has been very successful, and I
agree with you that more shots on Z could be effectively used. The
amount of shots requested annually on Z is more than twice the number
available under single-shift, 5-day-per-week operations. NNSA has added
significant additional funds to Z over the past few years via the Z-
refurbishment Project. This approximately $60M activity will further
expand Z's capabilities and ensure that it remains a vital part of the
stewardship program.
While we have funded the refurbishment of Z, we unfortunately have
not been able to implement additional operations due to funding
limitations and competing program demands. In fact, many large
Department of Energy and NNSA scientific facilities are oversubscribed;
indeed, one of the hallmarks of a successful facility is strong demand
from the scientific community. We have attempted to balance the
experimental, computational and engineering demands of Stockpile
Stewardship within the FYNSP. There are a number of critical
experiments on Z required to support life-extension program and other
critical activities which have the highest priority. We recognize that
some important experiments will be delayed given the current single-
shift operational status of Z.
Question. What is the justification for remaining with one shift,
when so much more could be accomplished?
Answer. NNSA is committed to funding all stewardship activities
within the existing FYNSP. Additional facility operations at Z would
require the addition of funds to the Inertial Confinement Fusion (ICF)
Campaign from other parts of the stockpile stewardship program or the
shifting of funds within the ICF campaign; in my judgment neither has
been the right course to pursue given other funding pressures in the
ICF Campaign and the stewardship program.
The NIF Project is a major commitment by NNSA and DOE and a key
element of the stewardship program, and hence we are committed to
delivering it on schedule. Demonstration of ignition is the major
purpose of NIF, and with respect to demonstrating fusion in the
laboratory, it is our first priority. Success on NIF ignition is
essential to the future of the ICF Program. The situation is similar in
the NIF diagnostics, cryogenics, and supporting technologies area. As I
noted earlier, we have decided to fund the refurbishment of the Z
machine. We also have major commitments to additional operations and
the Extended Performance project for the OMEGA laser at the Laboratory
for Laser Energetics at the University of Rochester, which also has had
recent outstanding results.
Question. Do you support expanding the opportunity to do more
research in inertial confinement fusion at Z?
Answer. The technical progress on inertial fusion at Z has been
impressive, and if it were possible to do more under the constraints we
face I would support it. However, given the FYNSP, I do not support the
diversion of resources from elsewhere within the ICF Campaign or other
stewardship accounts to fund additional ICF research at Z. We do have
several important challenging milestones in the Z research plan during
fiscal year 2005 and fiscal year 2006 and success in achieving or
exceeding these milestones could cause us to change some of our
procurement priorities. As documented in National Academy of Sciences
and other reviews, the demonstration of ignition is the essential next
step forward for the ICF Program. Demonstration of ignition is the
major purpose of NIF, and with respect to demonstrating inertial fusion
in the laboratory, it is our first priority. Success on NIF ignition is
essential to the future of the ICF Program. The NIF ignition program is
tightly constrained and we must stay focused upon it to succeed.
Question. What can NNSA do to facilitate such research?
Answer. The primary way NNSA can facilitate this research is by
adding additional operations to Z and successfully completing the Z
refurbishment project.
NNSA is proceeding with the refurbishment of the Z machine. This
refurbishment will replace original components that date back to the
early 1980's. This refurbishment will: extend the lifetime of Z,
increase its precision and reproducibility, reduce the maintenance
required between experiments thereby facilitating double-shift
operations should the additional funds become available, and
significantly enhance its technical capabilities. For example, the
refurbished Z facility will produce nearly double the X-ray energy for
stockpile stewardship and ICF research. It will also greatly expand the
utility of Z to address fundamental material properties by including
the flexibility of pulse shaping in order to double the experimental
pressures achieved.
NIF OTHER OPTIONS
Question. Dr. Beckner, if we pulled the plug on NIF today I
estimate we could save between $3 and $5 billion over the life of this
project. A lot of very promising work could be done with this money
including a variety of experiments using pulse power and laser power to
test our weapons systems. Also, the Japanese have had tremendous
success with petawatt lasers at a fraction the cost of NIF. I know you
are very much aware that the French are pursuing a similar laser system
slightly larger than NIF that hopes to have ignition within a decade.
Is there any reason why we shouldn't look at other options before we
spend another $3 to $5 billion?
Answer. The NIF is a unique element of the Stockpile Stewardship
Program (SSP), providing the capability to pursue the goal of ignition
and create conditions of matter similar to those found in nuclear
weapons. We believe NIF is the only facility in the world capable of
getting ignition by 2010. At that time, it will have been nearly 20
years since the last U.S. nuclear test. NIF will enable the study of
issues that affect an aging or refurbished stockpile. It will also
advance critical elements of the underlying science of nuclear weapons
that will play a major role in validation of ASC codes. NIF will be
important in helping to attract and train the exceptional scientific
and technical talent needed to sustain stockpile stewardship over the
long term. While we are constantly evaluating all options to obtain the
capabilities and information required to support the SSP, we have not
identified any U.S. facilities that can support the vital needs of the
Stewardship program as well as NIF.
We do not believe it prudent to rely on foreign nations to satisfy
our requirements. While it is true that the French are pursuing a laser
similar to NIF, their project has just broken ground, something we did
for NIF in 1997. Thus, we believe the French are 6 to 7 years further
from ignition than we are. In addition, the French project is dependant
on optical components jointly developed with NIF for success. If NIF is
cancelled, the French laser project will also be impacted. The Japanese
results, partially based on target designs and laser technology from
Livermore, is scientifically exciting but in its infancy. Their next
step, not anticipated for another 5 years, will use NIF laser
technology, is only a proof of principle, and will not achieve
ignition. In addition, current evaluations require a NIF-scale facility
of petawatt and long pulse lasers for ignition success. We believe that
the current FYNSP is the appropriate funding approach to our
Stewardship mission.
MESA/CMR FACILITIES
Question. Your fiscal year 2005 budget provided only half of the
funding necessary to complete the MESA project at Sandia National Lab
by 2007. This delay will unnecessarily increase the overall cost and
delay critical work on engineering solutions that will benefit the
weapons stockpile. This budget, also fails to provide adequate funding
to complete the Chemical and Metallurgy Research Facility (CMR) at Los
Alamos. It is my understanding that the planned end-life of the
existing 50-years-old facility will expire 4 years before a new CMR
replacement will be ready for use. What is the justification for
delaying the completion of these important facilities--especially when
delays will drive up the overall cost?
Answer. The fiscal year 2005 request for MESA is consistent with
the Performance Baseline approved by the Secretary of Energy on October
8, 2002, with a Total Project Cost of $518.5 million and a completion
date of May 2011. The Performance Baseline reflects construction of the
MESA facility in a sequenced approach that brings the MESA Complex on-
line in phases to meet NNSA's priority mission requirements, while at
the same time being affordable within the confines of the Future Years
Nuclear Security Program (FYNSP). Critical microelectronic integrated
circuits are already being produced in the retooled Microelectronics
Development Laboratory portion of the MESA project and have met the
initial needs of the life extension program.
As a result of the congressional appropriation increase provided
for MESA in fiscal year 2003, the Performance Baseline was changed to
reflect a revised completion date of May 2010. The appropriation
increase in fiscal year 2004 will result in further acceleration of the
project; the actual schedule impact is being evaluated as part of the
fiscal year 2006 budget process. The fiscal year 2005 request was then
adjusted due to overall priorities within the constraints of the FYNSP,
and to reflect a favorable bidding environment that allowed for shifts
in the project funding profile that had no impact on project
completion.
The CMR Replacement Project continues to be a high priority for the
Stockpile Stewardship Program. Based on the fiscal year 2004
appropriation reducing the CMR Replacement Project funding by
approximately 50 percent (from $20.5 million to $9.9 million after the
rescission), it was necessary to reassess the project's path forward
within the confines of the Future Years Nuclear Security Program
(FYNSP). We re-scoped the project realizing that it would not be sound
management to move from a fiscal year 2004 appropriation of $9.9
million to our original plan of $75.0 million for fiscal year 2005.
MODERN PIT FACILITY
Question. Dr. Beckner, the President's budget provides a $19
million increase for conceptual design for the Modern Pit Facility. I
assume, based on this funding request, that the Department is intent on
moving forward with the construction of a $4 billion facility. What is
the proposed timetable for the Secretary of Energy to make a final
decision to site the Modern Pit Facility?
Answer. A secretarial decision to move forward with planning that
includes a site selection for a Modern Pit Facility is currently
pending. All documentation required by the National Environmental
Policy Act (NEPA) to support a final Environmental Impact Statement
(EIS) and associated siting decision is complete. NNSA Administrator
Linton Brooks announced on January 28, 2004, ``I intend to have further
consultations with Congress before we proceed to a final EIS.''
Construction start for an MPF is currently scheduled for 2012 with full
operations in 2021. The Congress will be consulted at major planning
decision points prior to the start of construction.
Question. Is the Carlsbad region or elsewhere in New Mexico still a
viable option for this facility?
Answer. Yes, the Carlsbad region, the Los Alamos site along with
the three other sites evaluated in the draft environmental impact
statement are still viable options to host the Modern Pit Facility.
Question. Has the Department undertaken a study to evaluate the
condition of the existing plutonium pits to verify the need for this
facility?
Answer. The Department has an extensive study to evaluate the
condition of existing plutonium pits in the stockpile. NNSA is also
conducting an extensive set of aging studies to confirm the minimum pit
lifetime. While some results from these studies are expected in 2006,
the result of additional work to confirm current pit lifetime estimates
will become available prior to 2012 when construction of a Modern Pit
Facility (MPF) is scheduled to start. Because of the uncertainty in pit
lifetimes and the long-lead time to design and construct an MPF,
continued planning for an MPF is prudent risk management.
Question. Will the nuclear stockpile report that was requested by
this committee impact the Secretary's decision to site a new pit
facility?
Answer. As noted in the report (``An Enhanced Schedule for the
Modern Pit Facility (MPF)'') provided by the Secretary of Energy on
March 1, 2004, continued planning for a new pit facility is appropriate
for all future stockpiles under consideration. The NNSA has evaluated
capacity requirements for an MPF based on the following parameters: (1)
size of the future stockpile, (2) numbers and types of weapons in the
stockpile, (3) pit lifetime, (4) start date for quantity production,
and (5) length of time between shutdown of Rocky Flats and start of new
production. We have concluded from these analyses that if the number of
weapons in the U.S. stockpile is consistent with NPR/Moscow Treaty and
if pit lifetimes are assumed to be about 60 years, the Nation will need
a production capacity of some 125 pits per year beginning in about
2021.
SPACE REACTORS
Question. Admiral Bowman, I understand that Secretary Abraham has
recently assigned the responsibility for the development of a civilian
space nuclear reactor as part of project Prometheus. The mission NASA
has identified for this project is the Jupiter Icy Moons Orbiter.
Traditionally, this activity has been the responsibility for DOE's
Office of Nuclear Energy. How is it that the Naval Reactor program has
secured this responsibility?
Answer. The NASA Administrator asked the Secretary of Energy to
assign my Program the responsibility to develop, design, deliver, and
operationally support civilian space nuclear reactors. On March 8,
2004, the Secretary of Energy assigned Naval Reactors these
responsibilities in support of Project Prometheus. The Secretary of the
Navy concurred in this assignment.
In the NASA press release, NASA Administrator Sean O'Keefe is
quoted as saying, ``NASA sought this partnership because NR has an
enduring commitment to safety and environmental stewardship that is a
requirement for an undertaking of this magnitude. This partnership will
help ensure the safe development and use of a space-fission reactor to
enable unparalleled science and discovery as we explore the solar
system and beyond. This work is an integral piece of the President's
exploration agenda and without it the exploration agenda is
compromised.''
The DOE's Office of Nuclear Energy (NE) will retain responsibility
for various space nuclear technology efforts, including long-term space
reactor science and technology development not associated with work
assigned to NR. NE will also continue its responsibility for all
aspects of space radioisotope power systems.
STAFFING AND TECHNICAL CHALLENGES
Question. How do you plan to meet this challenge from a staffing
and technical capability?
Answer. Because the Naval Nuclear Propulsion Program is a lean
organization, accepting a role in Project Prometheus requires that I
increase the size of my staff and my DOE laboratory staffs to prevent
any noticeable impact on the core mission of supporting the nuclear
fleet. Because we are still early in the planning phase, we have not
yet determined how much of the Project Prometheus effort will be done
in house and how much will be subcontracted. The analysis we've done so
far indicates that this year I should increase my Headquarters staff by
a few people and my two DOE laboratory staffs by about 60 people
(combined increase). Because I intend to subcontract some of the
Project Prometheus work, my staff will be reviewing the specialized
expertise and facilities of industry, academia, and other DOE
laboratories to inform my decision. All of my staff and DOE laboratory
increases will be fully funded by NASA.
______
Questions Submitted by Senator Larry Craig
TECHNICAL AREA 18 LOS ALAMOS NATIONAL LABORATORY
Question. Last June, the Department of Energy halted work on the
project to relocate nuclear material and functions from the Los Alamos
National Laboratory's Technical Area 18 to the Nevada Test Site because
of an excessively high increase in the cost to complete the relocation.
At that time, it was reported that the cost estimate for the
modifications to the facility at NTS had risen to more than $200
million over the original estimate of $100 million. The DOE had further
indicated its intent to conduct an independent cost review.
What is the current cost of this project? What has been done to
reduce the cost? Has project scope or facility functionality been
reduced or changed and what effect has this had on cost?
Answer. NNSA is finalizing its review of the conceptual design for
the NTS Device Assembly Facility (DAF) option. The initial conceptual
design for DAF was submitted to NNSA Headquarters on January 20, 2004
with an estimated project range of $219 million to $255 million with a
schedule for completing the project in 2011.
As part of this submission, the project schedule had special
nuclear material (SNM) shipments from TA-18 to DAF in 2009. After
reviewing this package and assessing options for accelerating
activities, I announced on March 31, 2004 that NNSA would accelerate
movement of TA-18 programmatic SNM to DAF. The initial goal is to move
approximately 50 percent of the programmatic SNM from TA-18 to DAF by
March 2006. At this time, NNSA anticipates it will need access to a
subset of the TA-18 SNM to support ongoing mission commitments during
transition in the areas of emergency response, nuclear
nonproliferation, and criticality safety.
On April 9, 2004, Dr. Beckner, directed that the early move of SNM
occur outside of the project. The original project submission
identified approximately $22 million related to transportation costs of
SNM, including the design, development, and testing of new SNM shipping
containers. Accelerating transportation activities will allow for NNSA
to use existing shipping containers, avoiding approximately $7-8
million for designing new containers. Current estimates related to SNM
move are $1.22 million in fiscal year 2004 and $3 million in fiscal
year 2005. On April 30, 2004, I directed my staff to prepare a closure
plan for TA-18 that will identify the schedule and cost for moving the
rest of the SNM to DAF.
Based on this direction and input provided by other NNSA program
managers, the project team revised the CD-1 submission and provided
information to NNSA Headquarters for review and approval on May 7,
2004. While the final range is under validation by NNSA, it is expected
to be in the low- to mid-$100 millions with project schedule for
completion in late 2009. In addition to removing transportation
activities at $22 million, NNSA is removing the design and construction
of a new low scatter building within the DAF PIDAS based on discussions
with NNSA programs and security experts. Design and construction of the
low scatter building was estimated at approximately $30 million. NNSA
is now exploring options to conduct the activities proposed for this
new facility. In addition, NNSA is deferring upgrades to the critical
assemblies at a cost of approximately $10 million; only new control
systems and instrumentation for the critical assemblies are contained
within the project to support installation at DAF.
Question. Please provide an ``apples to apples'' comparison of cost
among the options that the DOE considered and explain the rationale for
concluding that the NTS option is the option with the lowest cost and
highest probability of success.
Answer. During the CD-0 phase of the project, NNSA evaluated the
proposed action of relocating TA-18 capabilities and materials
associated with Security Category I/II materials to a new location.
Location alternatives included sites: (1) a different site at LANL at
Los Alamos, New Mexico; (2) Sandia National Laboratories (SNL) at
Albuquerque, New Mexico; (3) NTS near Las Vegas, Nevada; and (4)
Argonne National Laboratory--West (ANL-W), near Idaho Falls, Idaho. The
No Action and Upgrade in Place Alternatives were also evaluated. These
alternatives are discussed in detail in the Environmental Impact
Statement (EIS) for the Proposed Relocation of Technical Area 18
Capabilities and Materials at the Los Alamos National Laboratory, DOE/
EIS-0319, August 2002. The preferred alternative in the Final EIS was
the DAF.
As a result of CD-0 Phase 1, each alternative developed a concept
and rough order of magnitude cost estimate. These estimates were
analyzed by NNSA and adjusted to provide equal comparison as shown in
Table 1. It is important to note that the transportation cost estimates
at this time were anticipated to exceed $50 million and there were
concerns regarding the system's ability to support TA-18 SNM relocation
in addition to other requirements.
TABLE 1.--CD-0 PHASE 1 ALTERNATIVE COST ASSESSMENT
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
LANL NTS SNL ANL-W
----------------------------------------------------------------------------------------------------------------
TEC......................................................... 130.6 76.7 129.2 92.7
TPC......................................................... 148.9 95.0 147.6 111.0
Transportation.............................................. 4 52 50 53
---------------------------------------------------
TOTAL................................................. 152.9 147.0 197.6 164.0
----------------------------------------------------------------------------------------------------------------
Based on this cost information and program considerations, former
NNSA Administrator John Gordon approved the original CD-0 Phase 2 for
this project on July 27, 2001 to proceed with designing a new
underground facility at LANL. While not completed, preliminary
information from conceptual design activities for this underground
facility in conjunction with the events of September 11, 2001,
warranted a re-examination of the NTS option (DAF). The AE chartered a
group to update the initial NTS concept on April 15, 2002 and to assess
life cycle costs. The group completed a special study ``TA-18 Mission
Relocation Project Special Study: Revisit the DAF Concept'' on June 25,
2002. The results showed that the DAF alternative was now a more cost
effective option in terms of construction and SNM transportation (see
Table 2). As a result of new information, the AE approved the revised
CD-0 Phase 2 on August 8, 2002, for the DAF.
TABLE 2.--TA-18 MISSION RELOCATION PROJECT SPECIAL STUDY RESULTS
[In millions of dollars]
------------------------------------------------------------------------
LANL NTS
------------------------------------------------------------------------
Design, Construction and Start-up............. 162.0 96.7
PIDAS Requirements............................ 16.0 ( \1\ )
Transportation................................ 4.0 30
-------------------------
TOTAL................................... 182.0 126.7
------------------------------------------------------------------------
\1\ N/A.
At NTS, only DAF was determined to be suitable and capable of
adequately supporting the TA-18 missions. This decision was based on
the fact that other NTS locations would require new construction at a
substantially higher base cost than re-modeling DAF. In addition, the
DAF has long been recognized as under-utilized and it maintains
substantial excess capacity. A decision was made based upon an option
analysis to utilize existing office space at the NTS control point
rather than build new offices near the DAF (with resulting cost
avoidance).
______
Questions Submitted by Senator Patty Murray
PACIFIC NORTHWEST NATIONAL LAB (PNNL)
Question. Ambassador Brooks, a draft plan for accelerated cleanup
of the Hanford Site, and the 300 Area in particular, would force
evacuation by 2007 of several buildings within the Pacific Northwest
National Lab (PNNL)--buildings that currently host work for the
National Nuclear Security Administration (NNSA) and the Department of
Homeland Security. Adequate replacement facilities cannot be in place
by the 2007 deadline, making this the first time in the history of the
Environmental Management program that cleanup would require active
facilities to be demolished, and capabilities discontinued and/or lost.
During a House Armed Services Committee hearing last week, you said
the Office of Science, which serves as steward of PNNL, had not yet
asked for NNSA help in addressing the potential loss of national
security capability at the lab. Is that still true?
Answer. The Office of Science has asked NNSA to inventory its
activities at Area 300. NNSA has conducted this assessment and
submitted it to the Office of Science.
Question. Has the Department sought input from your office in
finding a solution to the problems posed by the draft cleanup schedule
for 300 Area?
Answer. The Department has raised the problems posed by the draft
cleanup schedule for the 300 Area with NNSA but has not yet asked NNSA
for solutions.
Question. If the Department or the Office of Science seeks help
from the NNSA, is your office prepared to contribute to the cost of
replacing the facilities lost to 300 Area cleanup?
Answer. We are currently assessing whether or not the NNSA
activities that would be lost at Area 300 justify the considerable cost
of replacing the 300 Area facilities.
Question. Are you confident that the Department is on track to find
a solution that preserves the important capabilities at PNNL?
Answer. PNNL supports the national security of the United States in
a variety of ways and should be commended for its efforts. However,
given that PNNL's 300 Area capabilities only account for roughly 17
percent of NNSA's nonproliferation budget at PNNL, NNSA must evaluate
all available options before it can support the construction of a new
facility to replace PNNL's 300 Area facilities.
Senator Domenici. I want to share something with you just
before we close this hearing. I do not know if I should be
talking about this issue of America with you, but it is going
to be science that is going to make the breakthrough, be it one
or ten, that will once again start creating jobs in America, so
that when productivity increases we will see jobs instead of
what we are seeing now as productivity and no jobs. Most crazy
arrangement of economics we have ever seen. It would seem to me
the breakthrough with brand new technology and innovative
things is going to do it. Where it will come from, I do not
know. I have been pondering what we could do in the Federal
Government as an incentive to have it happen quicker but that
is too tough for me. But I have some people thinking about it.
But frankly, I think you have more to do with it than people
think, because you have the greatest array of scientists and
engineers, when you add your three labs up, of anywhere in the
world. And when you take the Mesa Facility and the CMR
facilities, and those are needed for the stockpile, but
everybody knows that nano-science and micro-engineering,
somewhere from those is going to come that breakthrough. And
the center for it was supposed to be Sandia National
Laboratories in a facility we started because of some things
that nano-science may do for the nuclear weapons. Now, we can
let an institution see and live its day and not do what it is
supposed to do because we do not fund it on time. Or we can
think it is important enough and fund it. So I am complaining
to you that your budget will cause a very big delay in
providing the facilities that are not there, that you cannot
expect great scientists to work in. If you ever saw what they
are working in, they are not going to make the innovative
breakthroughs that we are talking about there. And so I think
the 50 percent reduction in the expected continuation of the
building is not right. I urge that you be considerate of our
efforts to move it back on a path, that it might get built
sooner. Now, that is enough. If you want to comment, fine. If
not.
Ambassador Brooks. I think yes sir is the appropriate thing
for me to say.
SUBCOMMITTEE RECESS
Senator Domenici. Okay. With that, we have a number of
hearings for this subcommittee this year and they will be
interesting, but we stand recessed.
[Whereupon, at 4:25 p.m., Wednesday, March 23, the
subcommittee was recessed, to reconvene subject to the call of
the Chair.]
ENERGY AND WATER DEVELOPMENT APPROPRIATIONS FOR FISCAL YEAR 2005
----------
WEDNESDAY, MARCH 31, 2004
U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
The subcommittee met at 10 a.m., in room SD-138, Dirksen
Senate Office Building, Hon. Pete V. Domenici (chairman)
presiding.
Present: Senators Domenici, Craig, Reid, and Murray.
DEPARTMENT OF ENERGY
Office of Environmental Management
STATEMENT OF JESSIE H. ROBERSON, ASSISTANT SECRETARY
OPENING STATEMENT OF SENATOR PETE V. DOMENICI
Senator Domenici. The meeting will come to order. I
understand Senator Reid, Senator Craig will be along, but I
want to explain to you what's going on here and I haven't
decided yet what I'm going to do, but there's a briefing by Mr.
Tenet, a closed briefing for Senators, and I haven't heard him
yet and I may get started and just recess and you'll have to
wait. Sorry for the audience. We'll wait and come back, but
we'll get you finished before noon.
So good morning, and for all of you the hearing is going to
come to order. The subcommittee is going to take testimony on
the fiscal year 2005 budget request. We're going to take
testimony from Jessie Roberson, Assistant Secretary, Office of
Environmental Management; Beverly Cook, Assistant Secretary of
the Office of Environmental Health and Safety; Dr. Margaret
Chu, Director of Civilian Radioactive Waste Management. I
appreciate your participation here today and I look forward to
your testimony.
The President's request for the Office of Environmental
Management provides $7.4 billion. This is the largest request
ever made for environmental cleanup. I applaud the efforts of
the Assistant Secretary Roberson and the efforts to reform the
DOE cleanup program. I intend to carefully evaluate all the
cleanup responsibilities.
The administration has succeeded in reducing the total cost
estimates for 35 years by focusing on risk-based cleanup as a
strategy and seeking accelerated cleanup agreements with the
States. The DOE now believes that cleanup of the remaining 39
sites will finish by 2035 and will cost $142 billion down from
$192 billion which we were looking at in 2001. While the
achievement that we're going to work towards is remarkable, I'm
concerned by the Department's overriding determination to close
out cleanup by 2035.
This budget proposes shifting a number of cleanup
responsibilities to other offices and creating an entirely new
office to manage future cleanup of any ongoing DOE activities
that are not currently managed by EM.
It seems absurd to think that waste generated after a
certain date shouldn't be handled in the same aggressive manner
that EM has applied to existing cleanup. The budget process,
creation of an office of future liability--and I'm not at all
convinced that creating a new office and bureaucracy makes
sense--EM has worked very hard to minimize waste cost and it
would be a shame to lose the experience and knowledge created.
I intend to evaluate all the cleanup responsibilities EM
has proposed shifting to other programs in this budget,
including the proposal to saddle NNSA with the added cleanup
burden. Since we don't ask EM to test our nuclear stockpile, it
seemed inconsistent to expect NNSA to perform environmental
cleanup. Now maybe I got it wrong, but I don't think so.
The President's budget requests $880 million for Yucca. The
President proposes tapping the mandatory fees assessed to
utility customers to pay for developing the waste repository.
These fees amount to $749 million this year. The budget
proposes that an annual receipt be reclassified as
discretionary funds and appropriated. I'm not optimistic that
this reclassification can be accomplished.
I know that the Senate budget resolution does assume $577
million as a minimum level of funding, the same level that was
provided in 2004. I remain hopeful that more will be provided
this year in order to keep Yucca on schedule to open by 2010.
For the Office of Environmental Safety and Health, the
President's budget provides $139 million. This office has the
important responsibility of ensuring that DOE facilities across
the complex maintain the highest levels of worker safety and
abide by proper environmental standards.
I was disappointed to read in the Washington Post of a
draft DOE inspector general report that indicates that there
has been significant underreporting of worker inquiries by the
Department of Energy's Office of Environmental Safety and
Health.
According to the IG, the audit disclosed instances of
inaccurate and incomplete data entry and the Department's
safety performance was overstated. The audit found that the
Department's reporting of restricted work, but that the
contractor had actually reported 1,113 days of restricted work,
a figure more than twice that which DOE has figured. If true,
these accusations indicate that this Office has not addressed
worker safety consistent with the mission and the
responsibility. We'll be asking about that. You may have a
different version. We want to hear that.
The Office also funds the Energy Employees Occupational
Illness Compensation Program which has failed to expedite
worker compensation claims. Now, I understand that that statute
is not very easy to interpret and not very easy to implement.
Nonetheless, we don't have any other statute and that means
we've got to do better.
In my opinion, the claims that we failed in that regard
need to be thoroughly discussed. Those who are waiting around
for coverage are making a lot out of the fact that they are
waiting and waiting, and that's difficult and it's very hard
for us, too. I'm sure it's very hard for Senator Craig to
gather enormous amounts of data to validate the worker claims
that exist and I understand the Department has prepared new
legislation as well as $33 million for reprogramming in 2004.
That's going to be tough, but we ought to get started.
PREPARED STATEMENT
I will evaluate both requests to ensure that these
proposals will help DOE improve its ability to process worker
claims. Now, I was going to yield to Senator Reid who is
tremendously interested in what's going on and I appreciate
working with him. Senator Reid.
[The statement follows:]
Prepared Statement of Senator Pete V. Domenici
Good morning--this hearing will come to order.
Today, the subcommittee will take testimony on the fiscal year 2005
budget request from Jessie Roberson, Assistant Secretary, Office of
Environmental Management; Beverly Cook, Assistant Secretary, Office of
Environment, Safety and Health; and Dr. Margaret Chu, Director, Office
of Civilian Radioactive Waste Management.
I appreciate your participation here today and I look forward to
your testimony.
The President's request for the Office of Environmental Management
provides $7.4 billion. This is the largest request ever made for
environmental cleanup. I must applaud the efforts of Assistant
Secretary Roberson for her efforts and the efforts by the Department of
Energy to reform the DoE cleanup program.
This administration has succeeded in reducing the total cost of EM
cleanup by $50 billion and shortening the estimated timetable by 35
years. By focusing on risked-based cleanup strategies and seeking
accelerated cleanup agreements with States, DoE now believes that clean
up of the remaining 39 sites will finish by 2035 and will cost $142
billion. Down from $192 billion estimated in 2001.
While this achievement is remarkable, I am concerned by the
Department's overriding determination to close-out cleanup by 2035.
This budget proposes shifting a number of cleanup responsibilities to
other Offices and creating an entirely new Office to manage the future
cleanup of any on-going DOE activities that are not currently managed
by EM. It seems absurd to think that waste generated after a certain
date shouldn't be handled in the same aggressive manner EM has applied
to existing cleanup.
This budget proposes the creation of the Office of Future
Liability. I am not at all convinced that creating a new office and
bureaucracy makes any sense. EM has worked very hard to minimize waste
and cost and it would be a shame to lose the experience and knowledge
created within EM.
I intend to carefully evaluate all the cleanup responsibilities EM
has proposed shifting to other programs in this budget, including the
proposal to saddle NNSA with the added burden of cleanup. Since we
don't ask EM to test our nuclear stockpile, it seems inconsistent to
expect NNSA to perform environmental cleanup.
The President's budget requests $880 million for Yucca Mountain.
The President proposes tapping the mandatory fees assessed to utility
customers to pay for developing the waste repository. These fees amount
to $749 million this year. The budget proposes that the annual receipts
be reclassified as discretionary funds and appropriated. I am not
optimistic that this reclassification can be accomplished this year.
However, the Senate Budget Resolution does assumes $577 million as a
minimum level of funding--the same level that was provided in fiscal
year 2004. I remain hopeful that more will be provided this year in
order to keep the Yucca Mountain on schedule to open by 2010.
For the Office of Environment, Safety and Health, the President's
budget provides $139 million. This Office has the important
responsibility of ensuring that DoE facilities across the complex
maintain the highest levels of worker safety and abide by proper
environmental standards.
I was disappointed to read in the Washington Post of a ``draft''
DoE Inspector General Report that indicates that there has been
significant under-reporting of worker injuries by the Department of
Energy's Office of Environmental, Safety and Health.
According to the IG ``the audit disclosed instances of inaccurate
and incomplete accident and injury data'' and the ``Department's safety
performance statistics were overstated.'' The audit found that the
Department's reporting at the Waste Treatment facility at Hanford
reported 552 days of restricted work, but that the contractor had
actually reported 1,113 days of restricted work--a figure more than
twice has high as the DOE figure. If true, these accusations indicate
that this office has failed to address worker safety consistent with
its mission and responsibility.
This Office also funds the Employee Compensation program has failed
to expedite worker compensation claims. The existing program has been
plagued by challenges in putting together enormous amounts of data to
validate workers claims. I understand the Department has prepared new
legislation as well as a $33 million reprogramming in fiscal year 2004
to increase the effectiveness of the program.
I will carefully evaluate both requests to ensure that these
proposals will help DoE improve its ability to process worker claims.
Now, I will yield to Senator Reid for any opening statement he
would like to make.
STATEMENT OF SENATOR HARRY REID
Senator Reid. Thank you very much, Mr. Chairman. I
apologize for being a little bit late, but you always start
promptly for which I am grateful. I am pleased to welcome the
panelists here today. I think, Mr. Chairman, it's a mere
coincidence that three of the witnesses here that are appearing
today--anyway, I think it's good that you are appearing here
today.
We generally mix these panels from year to year and I'm not
sure that I am personally aware of your office having testified
before, but if you have, I missed that. I'm glad that you're
all here. I think this has been arranged well. I want to make a
point about how history tends to repeat itself at the
Department generally with results that I have to say haven't
been good for the employees and the contractors.
Dr. Chu, as you know, this subcommittee held a hearing in
Las Vegas earlier this month to address the issue of Yucca
Mountain mining workers being exposed to silica dust and other
problems, other compounds I guess would be the right word,
during the boring of the experimental tunnel.
The experimental tunnel is 5 miles long. The Department
didn't provide respiration equipment for ventilation--I'm
sorry. I thought I turned it on. I must have turned it off.
Only after workers began getting sick recently has the
Department begun to try to identify and find these workers,
many of whom have no idea that the Department in essence has
sent many of them to an early death. The Department knew of the
presence, I should say, of silica in the rock being bored. The
link to silicosis has been known for thousands of years and in
that area it's been known for more than 100 years.
To make matters worse, the Department waited 10 years
before lifting a finger to determine the extent of damage done
to workers' health, only after workers began getting sick. Dr.
Chu, you were gracious to send your Yucca Mountain site manager
and your safety advisor to the field hearing and we appreciate
that very much. You have been candid in my estimation.
I was, though, concerned with both of them. I thought they
would say that we as an organization didn't do the right thing,
didn't do a good job. We are going to do everything in our
power to find the people who are sick and take care of them,
but we didn't get that. We got a lengthy discussion of how the
Department now has policies and procedures in place to make
sure something like this will never happen again. It shouldn't
have happened in the first place, and we really have to do
everything we can to find out the condition of the people that
have been exposed there.
The present-day environmental management and environment
safety and health programs--perhaps you will see that I am not
comforted when I am told that DOE has policies and procedures
in place. They do not have procedures in place to protect
workers nationwide.
Ms. Roberson, you have the largest budget and one of the
most important jobs in the entire department. For all intents
and purposes, you are in charge of cleaning up the
environmental catastrophe of winning the Cold War. This is a
huge, technically difficult and extremely expensive job. I
don't envy you this task. I think by and large, you've done a
good job with your program of accelerated cleanups. Shaving
decades and billions of dollars from these cleanup programs is
a noble and important goal. Everyone involved wants these tasks
completed, but we want them done right and the only way they
can be done right is by keeping the workers who are doing it
healthy and safe.
I am concerned when I read about what seems to be a very
high injury and exposure rate among workers at cleanup sites.
This was reported in the press over the weekend. I get more
than upset when I read that DOE's own inspector general is
reporting that the Department maintains ``inaccurate and
incomplete accident and injury data'' even when its contractors
have completely accurate data.
When the Department's database indicates that 166 days were
lost to injury at the Idaho National Engineering Laboratory and
the contractor, Bechtel, reports 463 days lost during the same
reporting period, something's really wrong and this is
particularly in light of the fact that Bechtel has received
incentives and as contractors, discourages them from reporting
too many injuries.
There are only two possible conclusions to draw from such a
disparity: first, incompetence. Based on the Yucca Mountain
Program experience and other monitoring of site workers that I
have seen and heard over the years, this is plausible,
unacceptable but plausible.
Second, the Department has been deliberately downplaying
the risks associated with doing this cleanup, either to meet
schedule or contain costs. Incompetence of keeping health
records, particularly an organization that has roots dating
back over 50 years, upsets me. However, if the final IG's
report contains even a whiff of a notion that DOE has been
systematically underreporting injury and exposure in order to
meet deadlines and to contain costs, there are going to be some
serious consequences.
None of us here are willing to trade lives and long-term
life of our citizens in order to meet these milestones. Ms.
Roberson, Ms. Cook, I desperately want to believe that there is
a simple and plausible explanation for what the IG has found,
and if you have one, I hope you'll share it with us. My long
association with the Department through administrations, both
Republican and Democratic, is that worker safety has never been
the priority that it should be. Frankly, the Department's first
crack at an explanation gives me no faith that you're going to
be able to convince me that everything is as it should be.
Whenever a department spokesman's first line of defense is
that it's just a draft report and B, anyone who thinks we have
a problem is just being political, as Joe Davis said this
weekend, the Press Secretary for Secretary Abraham, my
confidence level sinks. This is typical. Any professional doing
his or her job who has the audacity to agree with their point
of view is by nature a partisan or political hack. In my view,
this is a flimsy defense when compelling answers and solutions
are called for.
Dr. Chu, as you might imagine, I have some things I want to
discuss. This is something that you may want to respond to in
writing, but let me just say that you recently announced that
you retained the Virginia-based law firm of Hunton & Williams
at the sum of $45 million to defend your license application.
That seems like a lot of money to me, in light that the firm
and its employees have had no involvement to date in the
drafting of the license application. Your staff should be
competent enough to draft and assemble the application itself,
and it would seem to me they're in a good position to answer
the questions and defend its contents.
Given the incredibly technical nature of this application,
how is it possible for a bunch of lawyers to add $45 million of
value to this process? But I am hopeful that Hunton & Williams
will not have any of the obvious conflicts of interests that
the previous law firm did, Winston & Strawn. I'd be keeping a
close eye on the staffing and billing of this legal team.
In the trade press, I've noted that you've settled the
lawsuit filed by the loser in the original firm bidding process
for almost $5 million. That's a lot of money for a law firm
that didn't do one single minute of work for American taxpayers
in this matter.
So I have a series of questions that I will submit with the
chairman's permission. I would hope that you would answer them
as quickly as you can. One more thing. You were unable to
attend the field hearing in Las Vegas early this month and hear
what some of those workers had to say. We have to really take a
look at that, and I hope that you'll go back and look at how
the workers have been treated and how sick they are until we
get to the bottom of this.
As I indicated earlier, not only am I concerned about the
silicosis, but we had expert testimony there that one of the
formations that they went through is something called ironite
which is worse than asbestos and causes mesothelioma. We had a
doctor come and testify to that fact, so it's a serious
situation.
PREPARED STATEMENT
I appreciate very much, Mr. Chairman, your patience in
allowing me to make this statement. I am going to, as I
indicated, with your permission, submit a number of questions
and ask the witnesses to respond to those to the full committee
at their earliest convenience.
[The statement follows:]
Prepared Statement of Senator Harry Reid
Mr. Chairman, I appreciate you holding this hearing today to
discuss the budget for the Environmental Management, the Yucca Mountain
program, and the Office of Environment, Safety and Health.
Like you, I am pleased to welcome Ms. Jessie Roberson, the
Assistant Secretary for the Office of Environmental Management; Dr.
Margaret Chu, the Director of the Office of Civilian Radioactive
Nuclear Waste; and Ms. Beverly Cook, the Director of the Office of
Environment, Safety, and Health.
It is a mere coincidence that the three of you are appearing
together here today. We generally mix these panels up a little bit from
year to year. Additionally, I am not sure that we hear from your office
each year, Ms. Cook.
However, I am glad that all three of you are here together, so I
can make a point about how history tends to repeat itself at the
Department of Energy, generally with bad results for the health of
employees and contractors.
Dr. Chu, as you know, this subcommittee held a field hearing in Las
Vegas earlier this month to address the issue of Yucca Mountain mining
workers being exposed to silica dust during the boring of the
Experimental Tunnel in the mid-1990's. The Experimental tunnel is 5
miles long. The Department did not require or provide adequate
respiration equipment for ventilation during the drilling of the first
3 miles, a period of about 2 years.
As many as 1,500-2,000 Test Site Workers may now be facing
silicosis, a deadly respiratory disease. The number may be higher or
lower. The Department is not really sure yet and did not keep accurate
records of who was on the work site at the time and have made no effort
until recently to try to figure it out.
Only after workers began getting sick recently has the Department
begun to try to identify and find these workers, many of whom have no
idea that the Department's negligence has potentially sentenced them to
an early death.
The Department knew of the presence of the silica in the rock being
bored. The link to silicosis has been known for THOUSANDS of years, yet
the Department knowingly allowed its employees and contractors to toil
for 2 years in such an environment before fixing the problem.
Then, to make matters worse, they waited for 10 years before
lifting a finger to determine the extent of the damage done to workers'
health, and then only AFTER workers began getting sick.
Dr. Chu, you were nice enough to send your Yucca Mountain Site
Manager and your Senior Safety Advisor to the field hearing. However, I
got pretty upset with both of them because, frankly, I expected them to
say clearly and without equivocation, ``We, as an organization, screwed
up, but we are going to do everything in our power to find these
workers and TAKE CARE OF THEM.''
Instead, I got a lengthy discussion of how the Department now has
policies and procedures in place to make sure something like this will
never happen again.
Wrong Answer. It never should have happened in the first place.
Unfortunately, it happens a lot at DOE.
Let's fast forward to the present day Environmental Management, and
Environment, Safety and Health Programs and perhaps you will see why I
am not comforted when I am told that the DOE has policies in procedures
in place to protect workers nationwide.
Ms. Roberson, you have the largest budget and one of the most
important jobs in the entire Department: For all intents and purposes
you are charged with cleaning up the environmental catastrophe
associated with winning the cold war.
This is a huge, technically difficult, and extremely expensive job.
I do not envy you this task, Ms. Roberson. I think, by and large, you
have done a good job with your program of accelerated clean-ups.
Shaving decades and billions of dollars from these clean-up programs is
a noble and important goal.
Everyone involved wants these tasks completed.
However, we want them done right. And the only way they can be done
right is by keeping the workers healthy and safe.
I am certainly concerned when I read about what seems to be a very
high injury and exposure rate among workers at clean-up sites as I read
over the weekend. But I get downright angry when I read that the DOE's
own Inspector General is reporting that the Department maintains
``inaccurate and incomplete accident and injury data'' even when its
contractors have completely accurate data.
When the Department's database indicates that 166 days were lost
due to injury at the Idaho National Engineering and Environmental
Laboratory and the contractor, Bechtel, reports 463 days lost during
the same reporting period, something is wrong, particularly in light of
the fact that Bechtel has incentives in its contract to discourage them
from reporting too many injuries.
In my view, there are only two possible conclusions to draw from
such a disparity:
--First, utter incompetence on the part of the Department in
maintaining records. Based on the Yucca Mountain Program
experience and other monitoring of Test Site Workers that I
have seen and heard about over the years, this is entirely
plausible. Unacceptable, but plausible.
--Second, the Department has been deliberately downplaying the risks
associated with doing this clean-up work, either to meet
schedule or contain costs.
Incompetence at keeping health records, particularly in an
organization that has its roots dating back over 50 years, makes me
very angry.
However, if the final IG's report contains even a whiff of a notion
that DOE has been systematically under-reporting injury and exposure
rates in order to meet deadlines or contain costs, there is going to be
hell to pay.
None of us up here are willing to trade lives and long-term health
of our citizens in order to meet milestones.
Ms. Roberson and Ms. Cook, I desperately want to believe that there
is a simple and plausible explanation for what the IG has found. If you
have one, I hope you will share it with all of us.
However, my long association with the Department, through
administrations both Republican and Democratic, is that worker safety
has never been the priority it should be.
Frankly, the Department's first crack at an explanation gives me no
great faith that you are going to be able to convince me that
everything is as it should be: whenever a Departmental spokesman's
first line of defense is that (A) It is just a draft report and (B)
Anyone who thinks we have a problem is just being political, as Joe
Davis, Secretary Abraham's press secretary did this weekend, my
confidence level sinks quickly.
This is pretty typical for this administration, though. Any
professional doing his or her job who has the audacity to disagree with
their point of view is, by nature, a partisan political hack.
In my view, that is a pretty flimsy defense when compelling answers
and solutions are called for.
Enough on all of that for the moment.
Dr. Chu, as you might imagine, I have a further thought or two for
you: first, you recently announced that you had retained the Virginia-
based law firm of Hunton and Williams, for the sum of $45 million, to
defend your license application for Yucca Mountain before the Nuclear
Regulatory Commission.
That seems like a huge sum for me, particularly in light of the
fact that the firm and its employees have had no involvement to date in
the drafting of the licence application. If your staff is competent
enough to draft and assemble the application itself, are they not in a
better position to answer questions about it and defend the its
contents? Given the incredibly technical nature of the application, how
is it possible for a bunch of attorneys, even ones with some knowledge
of the regulatory process, to add $45 million in value to this process?
While I am hopeful that Hunton and Williams will not have any of
the obvious conflicts of interests that your previous law firm did, I
will be keeping a close eye on the staffing and billing of this legal
team.
I further note that I saw in the trade press that you have settled
the lawsuit filed by the loser in the original law firm bidding process
for $4.5 million. That is a lot of money for a law firm that did not
one single minute of work for the American taxpayers on this matter.
I have a series of questions for all of you that I will either ask
at the appropriate time or will submit for the record. I hope all of
you will respond in a timely fashion.
Thank you for allowing me to take up a little more time than usual,
Mr. Chairman. You were unable to attend the field hearing in Las Vegas
earlier this month and hear what some of these former workers had to
say. I am still stunned and angry at the way the Department treated its
workers back then and apparently still are. The Department is charged
with doing important things for this country, many of them dangerous,
and, unfortunately, I am no longer convinced that worker safety is a
high enough priority. Perhaps we should consider slowing clean-ups down
for a short period to allow the Department to take a comprehensive,
across-the-board look at its safety policies and procedures.
Thank you, Mr. Chairman.
Senator Domenici. I would like to hear from Senator Craig.
Senator Craig, before you do that, I want to share with you, in
the event you haven't seen this, an announcement today by a
consortium of American companies to start a process of seeing
how the new licensing procedures will help them in the event
they want to build a nuclear power plant.
Now, they haven't said they're going to build one, but
they've said they're going to join together and apply in an
effort to determine whether it is true that this new process
expedites licensing or not. I'm very thrilled. That's not the
end of the road, but I would assume with your advocacy for
nuclear power, that you would probably think this is a very
important event.
Senator Reid. Who's going to do that, Mr. Chairman?
Senator Craig. The companies are Exxon Energy, Nuclear
Southern Company, Constellation Energy Baltimore, EDF
International, which is a subsidiary of a large French firm.
Senator Domenici. Senator, I want to make sure that you
understand that there is no site. This is just to see if it
works.
Senator Craig. There's nothing wrong with that.
Senator Domenici. And I think we just need that. Senator
Craig.
STATEMENT OF SENATOR LARRY CRAIG
Senator Craig. Well, thank you very much, Mr. Chairman, and
thank you for mentioning that. I think what is important here
is to, as the companies are attempting to do, demonstrate the
U.S. Nuclear Regulatory Commission's new what they call the COL
or COL process, which is a combination I think of construction
and operating license end process. I think that might work
well. Thank you all for being here today. We have a variety of
important questions to ask of you and to look at the budget for
the coming year. Let me say, and Senator Reid, let me echo your
concern about worker safety.
There is a field report in each one of the field offices,
and in the conversion of that report to a headquarters report,
nothing should fall through the cracks, and I think that is
what is being suggested that something might. To say that there
is not full reporting, to go to the field offices and look, I
think we see a different story, and it's important that there
be full transparency here as it relates to reports and
realities in worker safety. All of us are extremely concerned
about that as we should be, as I know certainly all of you are.
Mr. Chairman, I've got a variety of issues that I will
discuss and questions today, but let me say at the outset that
I'm going to be very direct for a few moments on items
associated with environmental management and that budget
request. I'm going to be, I hope, very clear as to where I
stand and what I'm going to ask of you, Mr. Chairman, and of
the Ranking Member to support as we craft this budget bill.
For the second budget request in a row, DOE is asking that
a number of responsibilities be transferred out of EM and into
other programs. I guess I have to ask this, then. Is there a
larger design here and is Congress only seeing it in a
piecemeal fashion by a year-to-year budget proposal. It almost
appears that DOE is reducing the scope of the EM program so
that it can be finished and victory declared by a date possible
and then, oh by the way, we aren't done with high-level waste
and we transfer the spent fuel storage to another program and
we haven't addressed buried waste and we've created a new
office of future liabilities.
In other words, Mr. Chairman and to all of you assembled,
environmental management is focused on completion as DOE's
budget states, but only completion of all the things that
aren't transferable somewhere else. So do I sound concerned?
You bet I'm concerned. I'm very concerned about the position
and the reorganization that DOE is proposing.
Here is what I have to ask the chairman and the ranking
member to consider. I believe we should put these piecemeal
transfers on hold in the fiscal year 2005 budget. I asked DOE
to come back to the authorizing committees and to this
committee with a comprehensive plan for all of these changes
along with a mapping from the old budget to the new proposal
and to submit all that within the 2006 budget request.
DOE is also asking to fence off $350 million related to
cleanup of high-level waste in Idaho and Washington, South
Carolina until Congress passes legislative language related to
waste reclassification. Let me be clear. I do not support the
language DOE submitted. It may be that given DOE's loss in the
court in Idaho, we may need to clarify what we mean in terms of
tank closure.
If DOE and the State of Idaho can come to an agreement on
the shape of that, what shape that clarification should take in
law, I will work with my colleagues here to support that effort
and to support the Department's effort.
I will not allow DOE to hold this work hostage or to hold
this budget hostage with these kinds of tactics. DOE's own
budget makes reference to the sole-source aquifer in Idaho,
that most of the waste sits over the top of, that provides
Idaho's drinking and irrigation water. Now, I notice that DOE's
fiscal year 2005 budget at Rocky Flats in Colorado is asking
for the funding to remove every last bit of radioactive
material or waste, low-level waste, from Rocky Flats for off-
site disposal. I find it very difficult to reconcile that with
DOE's continued innuendoes that the States like Idaho and
Washington are insisting on ``gold-plated cleanup'' just
because they want some say in how DOE defines how clean is
clean.
DOE knows I have been open to proposals that are
alternatives to current proposals if they make sense to all
parties involved. At Rocky Flats, DOE spent over 5 years
working with the State of Colorado and other stakeholders in
developing how clean is clean. They call it their soil action
levels. Well, they were taking 5 years to develop those
standards, they kept clunking along on the cleanup.
So I find it completely unacceptable that DOE thinks it
can, if you will, hold hostage $350 million and refuse to
continue high-level waste cleanup while demanding that DOE have
it their way in Idaho and Washington and South Carolina, or to
spend money to remove all the radioactive waste at Rocky Flat
but tell Idaho that DOE doesn't have to address any of our
buried waste, some of which is transuranic, that stuff that is
customarily, as we know, going to the facility in Carlsbad.
We know on this committee that resources are limited and
that we don't have an open access to the U.S. Treasury, but
we're going to be looking for some equitable treatment when it
comes to risk. We're also going to be asking for what I would
suggest needs to be a clearly transparent approach to what the
end game is and what the procedures are, and I don't feel at
this time, frankly, we understand it nor are we gaining that
kind of transparency. I hope that's about as clear as it can be
said.
But Mr. Chairman, this is one Senator that is not at all
happy with the current proposal and the current budget.
Senator Domenici. Thank you very much, Senator Craig. Let
me say you have had to sit there and accept as we do in the
Congress, the feelings of Senators. You have your opportunities
to answer all this, but I'm going to do the following.
Senator Murray is willing to stay. I don't know if you want
to go to Tenet? You don't. Well, Senator, you preside, and then
Senator Murray has a series of questions, so if you would let
her go, and I will try to get back. When I come back, I do want
to ask if you have had a chance to explain the allegations,
especially in the safety and health area, but four or five
areas, because I am interested and I don't necessarily share
the same opinion of the Senators who have spoken, but that's
too bad. They may have more votes than I have.
But the important thing is to try to figure out how we can
do it, and to do that, we've got to know facts, so with this,
I'm going to yield to Senator Murray, and then Senator Craig is
going to take over. I'm going to walk quickly to hear Mr.
Tenet. I will stay until noon. If we are not finished, we'll
just have another hearing because there are three or four
issues that have to be answered or we're going nowhere.
You haven't talked much, Dr. Chu, and we want to hear from
you also. Before I leave, I want to say that it is rare indeed
to look at this problem of Yucca and the disposal of waste.
We've been sitting around looking at a graph. At one point, we
had 300, 400 billion on these graphs, and it's amazing that all
the men that tried didn't make any headway. So now we've
decided the women will take the lead, and I'm very pleased with
you, Dr. Roberson, and with you, Dr. Chu. You came from one of
our laboratories. It is absolutely amazing what you have done,
regardless of the criticism. Your activities have been very,
very interesting and I will leave now and try very much to come
back. Okay.
STATEMENT OF SENATOR PATTY MURRAY
Senator Murray. Thank you very much. I assume that's an
endorsement for women to take over the Senate as well.
Senator Craig [presiding]. I am now clearly in the minority
in this room. Please proceed.
Senator Murray. Well, I do want to make an opening
statement. I want to thank Senator Domenici. And other
challenges are completed or well underway. The funding the
administration has been requesting and this subcommittee has
been providing is making a real difference. Unfortunately, that
is not the full story at hand for today. It seems time and
again, the Department makes decisions that raise questions
about its commitment to full cleanup, partnership with Federal
and State regulators, communication with the community, and
concern about safety.
We can all agree with the Department's goal of accelerated
cleanup, but as I said 2 years ago, this cannot occur at the
expense of worker safety or the environment. The recent events
raised this very fear. First, the Department is seeking
unilateral authority to reclassify high-level waste at Hanford,
Idaho and South Carolina. Those three States plus New Mexico,
New York and Oregon are opposing this effort in court.
Secondly, workers are being exposed to potentially
dangerous tank vapors at Hanford.
Third, there are accusations that medical care is being
manipulated to reduce the number of days not worked due to
work-related injuries. These and other injuries raise real
questions about the Department's commitment to full and
faithful cleanup and worker safety.
PREPARED STATEMENT
I believe the Department can achieve full cleanup and cost
and time savings while keeping faith with regulators,
communities and workers. In fact, I believe the cleanup program
can be a nearly unquestionable success if it addresses all
those issues. We will not solve this today, but the Department
needs to take some considerable steps to rebuild good faith
with these partners in cleanup. Thank you, Mr. Chairman. I do
have questions and I will wait until after the witness'
testimony. Thank you.
[The statement follows:]
Prepared Statement of Senator Patty Murray
Mr. Chairman, I would like to make a brief opening statement.
First, I'd like to express my appreciation to you and Senator Reid
for both of your steadfast support of the Environmental Management
Program. This program is obviously vitally important to my State and
I'm very appreciative of your help.
I'd like to say that I'm pleased with most of the recent cleanup
activities at Hanford. Significant actions on spent fuel, the plutonium
finishing plant, and other challenges are completed or well underway.
The funding the administration has been requesting and this
subcommittee has been providing is making a real difference.
Unfortunately this is not the full story at Hanford.
It seems time and again the Department makes decisions that raise
questions about its commitment to full cleanup, partnership with
Federal and State regulators, communication with the community, and
concern about safety.
We can all agree with the Department's goal of accelerated cleanup,
but as I said 2 years ago, this cannot occur at the expense of worker
safety or the environment.
But recent events raise this very fear.
First, the Department is seeking unilateral authority to reclassify
high-level waste at Hanford, Idaho, and South Carolina. Those three
States, plus New Mexico, New York and Oregon are opposing this effort
in court.
Second, workers are being exposed to potentially dangerous tank
vapors at Hanford.
Third, there are accusations that medical care is being manipulated
to reduce the number of days not worked due to work related injuries.
These and other issues raise real questions about the Department's
commitment to full and faithful cleanup and worker safety.
I believe the Department can achieve full cleanup and cost and time
savings, while keeping faith with regulators, communities and workers.
In fact, I believe the cleanup program can be a nearly unquestionable
success if it really addresses these issues.
We will not solve this today, but the Department needs to take some
considerable steps to rebuild good-faith with these partners in
cleanup. Thank you Mr. Chairman.
Senator Craig. Well, thank you very much, Senator. Now that
we've had our say, it's more than appropriate for you all to
have your say before we go to questions, and with that in mind,
let me first turn to Jessie Roberson, Assistant Secretary for
Environmental Management. Jessie, again, as the chairman has
said, welcome before the committee.
STATEMENT OF JESSIE H. ROBERSON
Ms. Roberson. Thank you, sir, and good morning, Senator
Murray and Senator Craig and staff for the subcommittee. I'd
like to begin by conveying the Department's appreciation to you
for your investment in the accelerated cleanup program. Your
support is allowing us to achieve the dramatic results we
forecast before this subcommittee a short 2 years ago.
I'm here today to discuss President Bush's fiscal year 2005
budget request for the Environmental Management program and its
goal of sustaining the momentum that our work force has labored
so hard to achieve, a momentum that benefits the vibrancy of
our communities, our environment and our economy. In the last 2
years, we've introduced dynamic reforms, delivered fundamental
change and achieved significant improvements in health, safety
and environmental protection.
With your support, these reforms have become ingrained in
our operations and our business processes, and with your
continued support and our continued keen focus on risk
reduction and cleanup, the momentum can and will continue. I'd
like to take a moment to underscore the impacts of refocusing
the Environmental Management program.
We have improved safety performance. We are committed to
instilling the appropriate philosophy in every worker's day-to-
day decisions from start to finish of every project. To that
end, we are demonstrating that we can accelerate work and
improve safety performance at the same time. We are focused on
continuous safety improvement. We have institutionalized the
behaviors of a learning organization in our organization. We
invest in system safety training and leadership training. We
demand a healthy inquisitiveness. We stick to the basics,
allowing a disciplined conduct of operations, and we are
focusing our environmental and operational safety efforts on
prevention first.
And I look forward to responding to the issues raised in
the opening statements regarding challenges to our safety
performance. We have not nor will we stop paying attention to
safety. We will continue to ``raise the bar'' and hold
ourselves accountable to the highest standards.
Second, we have demonstrated real cleanup results and risk
reduction. Last year we set a new floor of performance not yet
seen in the history of this program, and I say floor because we
see this as a level of performance that we will continue to
build upon. Over the last 2 years, for example, six of nine
nuclear fuel basins completely deinventoried. None of those
were in our plan before. Four thousand, one hundred of 5,900
containers of plutonium, approximately 80 percent, have been
packaged, we're almost complete. Over 1,300 of 2,400 metric
tons, more than half, of the spent nuclear fuel is repackaged.
Our workforce has accelerated that work, too.
Our corporate performance measures, detailing our
performance, which I have included in my written statement,
further demonstrates our progress and in combination with our
safety performance, we have accomplished consequential outcomes
important to the public, the communities that host our sites,
and for the generations that follow us.
Three years ago, the Environmental Management program was
described as lacking a risk-based cleanup approach and the
hazards at the DOE sites and the liability associated with them
did not appear to dictate the need for urgency. Innovative
actions in all elements of the cleanup program were needed to
transform EM's processes and operations to reflect an
accelerated risk-based cleanup paradigm.
We believe that by providing an atmosphere that encourages
innovation, we can reduce risk to workers and the environment
more effectively and save resources to be reinvested in
furthering the cleanup priorities of each of the sites. Tying
all these accomplishments together has been our driving force
to improve performance in our acquisition strategy
specifically.
Legal actions and court decisions may direct us to alter or
modify our activities from the accelerated cleanup and closure
path. We are committed to work diligently with all concerned
parties to avoid interruptions in reducing risk where we can.
This year has seen dramatic results demonstrating our steadfast
belief that continuing on the accelerated path will resolve the
problems that lie before us. We must not lose our momentum that
has so earnestly been established by the work force.
As with all new enterprises, impediments will be many, but
we are committed to employ our resources to continue to show
meaningful results and we're taking a very critical view of
those results. The job is not done until it's done. We can't be
complacent. We must continue to do better. It's not done when
we develop a plan. It's not done when we agree on a milestone.
It's not done when we ask for funding. It's not done when we
sign a contract. It's not done when we get money. It's not done
until it's done and there is positive and measurable risk
reduction for the investment made.
PREPARED STATEMENT
I ask for your support of our fiscal year 2005 budget
request of $7.43 billion to continue this momentum. We are
safer today than we were last year, and we must stay the course
so that we are safer next year than today. We have accelerated
cleanup by at least 35 years, saving over $50 billion. The
potential is there to lose what we have gained should we fail
to stay focused on our commitments. Thank you, sir.
[The statement follows:]
Prepared Statement of Jessie H. Roberson
Mr. Chairman and Members of the subcommittee, I am delighted to be
here today to convey the Department's appreciation for your support of
the Environmental Management (EM) program, without which the dramatic
results in accelerating the cleanup of the legacy of the Cold War would
not be possible. I welcome this opportunity to sit before you and
report on our progress, the potential gains and risks that lie before
us, and the importance of sustaining the momentum that our workforce
has labored so hard to achieve--a momentum that benefits the vibrancy
of our communities and the environment.
Two eventful years have passed since the release of the Top-to-
Bottom Review of the EM program. In these last 2 years, we have taken
decisive steps to transform a program focused on managing risk to a
core mission-focused program that is accelerating risk reduction and
cleanup. We have introduced dynamic reforms, delivering fundamental
change and achieving significant improvements in health, safety, and
environmental protection but more was needed to be done.
Last year when I spoke with you, I stated that I was not
``satisfied'' with our progress. We must continue to better our
performance and to look beyond the status quo to achieve results that
are truly groundbreaking for the benefit of the generations that follow
us. I challenged our workforce, our partners, and myself and all those
interested in joining us in our vision of accelerated cleanup to put
their most innovative ideas and people forward. I am proud to announce
that with our combined efforts, our objective of accelerating
environmental cleanup and risk reduction by 35 years and reducing
estimated program costs in excess of $50 billion has become a reality.
As cited in the recently released U.S. Department of Treasury 2003
Financial Report to the United States Government, ``the recognized cost
of cleaning up environmental damage and contamination across Government
programs was estimated to be $249.9 billion, a decrease of $23.1
billion or 8.5 percent from September 30, 2002. The most significant
component of this reduction relates to the Department of Energy
(Energy). Energy has reduced its environmental liability by $26.3
billion or 12.5 percent in fiscal year 2003; this is the second year in
a row that Energy's environmental liability decreased''. Along with the
environmental liability reduction in fiscal year 2002 of $28.7 billion,
the Department has reduced its environmental liability by $55 billion
over the last 2 years. A reduction mostly due to employing a cleanup
approach that focuses on accelerating risk reduction to public health.
With your support and our continued keen focus on cleanup and closure,
the momentum can continue.
For fiscal year 2005, the President's Budget includes a record
$7.43 billion for the accelerated cleanup program, the peak year in our
funding profile. As we identified last year, the administration
believes that this investment is crucial to the success of accelerated
risk reduction and cleanup completion. We anticipate funding will then
decline significantly to about $5 billion in 2008.
The EM portion of the fiscal year 2005 Congressional budget is
structured analogous to last year. The budget structure focuses on
completion, accountability, and visibility; institutionalizes our
values; and integrates performance and budget. Requested funding can
clearly be associated with direct cleanup activities versus other
indirect EM activities.
Within the Defense Site Acceleration Completion Appropriation, the
budget reserves $350 million for a High-Level Waste Proposal. With the
Idaho District Court decision on Waste Incidental to Reprocessing, the
Department's ability to proceed prudently with accelerated risk
reduction for some activities is drawn into question. The decision
makes it difficult, if not impossible, for us to undertake planned
actions at Idaho, Hanford and Savannah River Site to aggressively
reduce risks posed by wastes stored in tanks at those sites--actions we
had committed to take, in agreement with our host States, before the
court decision. The decision now means we are likely to leave tank
wastes in place longer while we try to resolve issues created by the
decision--a course that has significant societal and monetary costs.
This $350 million supports activities normally funded from the 2012
Accelerated Completions account and from the 2035 Accelerated
Completions. These funds will be requested only if the legal
uncertainties are satisfactorily resolved.
In alignment with ongoing Departmental missions, this budget
reflects a transfer of multiple activities that are not core to the EM
mission to other Departmental elements. These transfers provide the
responsible and accountable mission programs with the resources and
tools to achieve their objectives at the expected performance level.
This accountability model is the key to moving each of the enterprises
or missions of the Department forward in attaining the desired outcomes
and results important to the administration and supporting our
accelerated risk reduction and closure initiative. Transfers include:
--Transferring Federal staff at the Pacific Northwest National
Laboratory to the Office of Science and Federal staff at
Headquarters to the Office of the Chief Information Office.
--Transferring the EM portion of the Offsite Source Recovery Program
to the National Nuclear Security Administration.
--Transferring spent fuel storage responsibilities at Idaho National
Laboratory, the Foreign Research Reactor Spent Fuel Program,
management of NRC-licensed spent fuel, and the National Nuclear
Spent Fuel Program to the Office of Civilian Radioactive Waste
Management.
--Transferring Formerly Utilized Sites Remedial Action Project
records management, responsibility for cost liability and
recovery reviews, and Environmental Justice and the Massie
Chairs of Excellence Program to the Office of Legacy Management
(LM).
We will also be transferring sites, as they are completed, either
to the landlord or to LM. The latter will occur if the site has no
further DOE mission. EM is working with LM to ensure smooth site
closure and transition by:
--Ensuring that site baselines identify functions and elements beyond
contract closure to meet all internal requirements;
--Conducting assessments of site readiness for transfer and closure
in tandem with LM;
--Having joint teams at each site (Rocky Flats has 2 LM employees)
and supported by HQ LM personnel who were once EM personnel and
EM personnel at sites are transferring to LM positions;
--Holding quarterly meetings between EM and LM senior management to
address key issues and make decisions;
--Developing a communication plan defining roles and responsibilities
between EM and LM staff.
The administration considers this budget request a critical step on
the accelerated risk reduction and cleanup path. Without these
resources, we could face higher risk to the environment and the public
and lose the momentum we have gained in changing the paradigm. With
your support, we have the opportunity to succeed in producing historic
results that will last for many years to come.
DEMONSTRATING RESULTS
With the October 2003 release of the Report to Congress on the
Status of Implementation of the Top to Bottom Review, we have
demonstrated that the direction we took 2 years ago is showing real
results. I wish to take a moment and expound the impacts of the far-
reaching accomplishments that are underpinning the developing momentum
of the program.
Improved Safety Performance
We believe in order to accomplish our accelerated risk reduction
and cleanup mission, we must continue to do work safely. We are
committed to instilling this philosophy in every worker's day-to-day
decisions from start to finish of every project. To that end, with top-
quality safety standards, we are demonstrating that we can accelerate
work and improve safety performance at the same time. For example in
August 2001, EM's Total Reportable Cases (TRC) and Lost Workday Cases
(LWC) were 1.9 and 0.8 respectively, per 100 workers (TRC and LWC are
standard tools used to measure safety performance). In September 2003,
we had reduced our TRC to 1.2 and LWC to 0.5. These rates are
significantly better than private industry, which OSHA reported in
2002, had a TRC of 5.3 and LWC of 1.6. The construction industry alone
had rates of 7.1 for TRC and 2.8 for LWC in 2002. We have not nor will
we stop paying attention to safety. We will continue to ``raise the
bar'' and hold ourselves accountable to the highest standards.
Complacency is not acceptable in our advance to the safe conclusion of
our cleanup objectives.
Cleanup Results and Risk Reduction
Prior to the Top to Bottom Review, EM had lost focus of the core
mission, the mission that the program was established to solve--address
the environmental legacy of the Nation's Cold War nuclear weapons
research and production. With a program responsible for the management
of millions of gallons of liquid radioactive waste and thousands of
tons of spent nuclear fuel, the unhurried pace of cleanup and risk
reduction was unacceptable. If immediate actions were not taken the
risks associated with the EM program would continue to grow to
unpardonable levels.
Last year set a new floor of performance not seen before in the
history of the program. Our investment has born amazing results. For
example: three spent nuclear fuel basins were de-inventoried at Idaho
National Laboratory, along with two at the Savannah River Site and one
at Hanford. And in regard to Hanford, we have removed 70 percent of the
spent nuclear fuel from the K-Basins. These basins located less than a
quarter of a mile from the Columbia River have the potential to leak
and cause costly environmental harm both to the health of the river and
the public--this is a significant gain in risk reduction. Another
example is at Rocky Flats. This site, once responsible for nuclear
triggers, has shipped all plutonium off site and closed the last
remaining material access area. These visible, risk reducing results
that have demonstrated our ability to accelerate schedule and reduce
life cycle cost while showing to our public and surrounding communities
the Department's commitment to improve worker safety, reduce health
risks and eliminate environmental hazards.
So you may have a better comprehension of the magnitude of our
cleanup results, I would like to insert for the record a copy of our
recent corporate performance measures. EM's Performance Measures is a
compilation of the program's 16 complex wide performance measures. As
you can see, we can deliver significant risk reduction and cleanup and,
as I stated earlier, in combination with improved safety performance.
Accelerating risk reduction and cleanup, in concert with exceptional
safety performance, accomplishes consequential outcomes important to
the public, our communities, and for the generations that follow us.
Innovations in Ideas, Processes, and Practices
Two years ago, the Top-to-Bottom Review described the EM program as
lacking a project completion mindset, internal processes were
inconsistent with a risk-based cleanup approach, and the hazards at the
DOE sites and the liability associated with them did not appear to
dictate the need for urgency in the cleanup decisions. The Top-to-
Bottom Review team emphasized that the EM mission cannot be
accomplished by continuing business as usual. Innovative actions in all
elements of the EM program would need to be taken to transform DOE's
processes and operations to reflect the new accelerated risk-based
cleanup paradigm.
To foster innovation, we identified ideas and processes from
successful projects that had delivered accelerated results and conveyed
the information across the EM program. For example, at Rocky Flats, we
drew from their experience in project planning and delivery along with
technology advancements. Sharing the innovative practices allowed for
similar outcomes at other sites. If I may take a moment to share a few
ideas and practices:
(a) Establish a clear end-state vision and risk-based cleanup
levels in conjunction with specific future land/site use and in
consultation with regulators, stakeholders, and affected and interested
governments.
(b) A ``best-in-class'' management team is recruited and sustained
with the result of team focus and retention of key staff.
(c) Senior management emphasis is placed on key safety issues of
keeping workers working, minimizing the risk of possible high-impact
events, quick recovery after accidents, safety ``pauses'' as
appropriate, and improved safety training.
(d) Projects are managed in an environment that provides
significant incentives for real cost savings.
(e) New and innovative equipment and methods are being used for
size reduction (e.g. plasma cutting torch, engineered enclosures,
water-jet cutting of components), significantly improving safety and
effectiveness.
(f) Improved decontamination techniques coupled with new radiation
instrumentation.
We continue to encourage innovation in our processes and practices
to further enhance safety performance, accelerate risk reduction,
reduce health impacts, and save resources to be reinvested in
furthering the priorities of each of the sites.
Acquisitions Driving Performance
Tying all these accomplishments together has been our continued
drive to improve performance from our new acquisition strategy. These
accomplishments serve as indicators of the level of performance we are
expecting from our contractors now as well as into the future. When we
reviewed our contracts over the past year--as you may remember I said
we formed a Contract Management Advisory Board last year--we identified
a short list of significant findings that did not prove advantageous to
the overall success of the program. We concluded that DOE tends to
manage the contractor not the contract, that project baselines needed
improvement along with project management and the associated reporting,
incentives for meaningful risk reduction were lacking, more emphasis
was needed on cost-efficient performance, and there seemed to be
insufficient competition and small business participation.
To address these weaknesses, we have instituted three business
models that we believe will vastly improve our acquisition process and
opportunities for success. Our reform strategy is to accelerate the
reduction of risk from the legacy of the Cold War safely and
efficiently and at a cost savings for the taxpayer. One model focuses
on improving incumbent contractor's performance, while another aims to
increase competition and small business participation. The third
concentrates on the establishment of national Indefinite Delivery/
Indefinite Quantity (IDIQ) contracts for remediation and
decontamination and decommissioning. All three are on the fast track.
In fact, in September, as a first step we announced the selection of
five 8(a) businesses that will perform work at our small sites across
the country. And in fiscal 2004, we have six new contracts--two at
Paducah, two at Portsmouth, one at the Fast Flux Test Facility at
Hanford, and one at the Idaho National Laboratory along with the IDIQ
contracts that will be competed. We expect these new contracts will
challenge the contractor community, a challenge that is healthy for all
involved.
We Have Our Challenges Too
As we continue to challenge the status quo, we may be confronted
with legal actions and court decisions that will direct us to alter or
modify our activities from the accelerated cleanup and closure path. We
will continue to work diligently with all concerned parties to avoid
interruptions in reducing risk and advancing cleanup for the public.
We expect to be challenged on our delivery of Government Funded
Services and Items, or GFSI. We are accountable on delivery of GFSI and
we expect to be held to our commitments.
Also, we have challenged our managers at all levels to stay true to
our commitment and employ our corporate performance measures as an
accountability and success gauge assessing our progress as well as a
tool that alerts us when management action or intervention is
warranted.
THE FISCAL YEAR 2005 BUDGET REQUEST
The fiscal year 2004 budget was the first budget that fully
reflected the initiatives undertaken by the administration to transform
and revitalize the cleanup of the former weapons complex. The EM
program has been refined and fortified with management reforms, which
have led to accelerated risk reduction and a decrease in life-cycle
costs surpassing previous expectations. The investment we have
requested in our fiscal year 2005 budget will contribute to EM's
continued success in achieving its mission of accelerated risk
reduction and site closure.
The EM fiscal year 2005 budget request represents the peak year of
our investment strategy to accelerate cleanup and reduce risk. This
budget fully reflects each site's accelerated risk reduction and
cleanup strategy. The fiscal year 2005 budget request is pivotal to
keep the momentum going and to achieve even greater risk reduction and
cost savings than ever before.
The 2005 budget request for EM activities totals $7.43 billion to
accelerate risk reduction and closure. The request includes five
appropriations, three of which fund on-the-ground, core mission work,
and two of which serve as support. The five appropriations and
associated requested funding are:
--Defense Site Acceleration Completion ($5.97 billion),
--Defense Environmental Services ($982 million),
--Non-Defense Site Acceleration ($152 million),
--Non-Defense Environmental Services ($291 million), and
--Uranium Enrichment Decontamination and Decommissioning Fund ($500
million).
Within the Defense Site Acceleration Completion Appropriation, $350
million is tied to the Idaho District Court decision on Waste
Incidental to Reprocessing. These funds will only be requested upon
satisfactory resolution of the recent court decision that affected the
Department's plans for some waste streams.
In building the request, the Department applied the following
principles and priorities:
Protect workers, public, and the environment.--The budget request
continues to place the highest priority on protecting workers, the
public, and the environment. The implementation of EM's cleanup
strategies allows for an overall improvement in safety and reduction in
risk because cleanup will be completed sooner, reducing the extent to
which workers, the public, and the environment have the potential to be
exposed. Over the past 2 years, dramatic improvements in safety
performance have been demonstrated.
Ensure the appropriate levels of safeguards and security.--Due to
heightened security levels throughout the Nation, it is crucial that we
maintain vigilance in our domestic security to protect our citizens.
The EM program is responsible for many tons of surplus nuclear
material. This budget request reflects our increased safeguards and
security needs, including the new Design Basis Threat requirements.
Overall, the budget has decreased from fiscal year 2004 because we have
been able to consolidate materials into fewer, more secure locations,
and we have reduced the footprint of secure areas. The sites with the
largest remaining funding needs are the Savannah River Site and
Hanford. Savannah River Site's funding supports the security of nuclear
materials, maintenance of uniformed protective force personnel,
information security and operations security for the protection of
classified and sensitive information, cyber security for the protection
of classified and unclassified computer security, and personnel
security. Hanford's funding supports security for shipment of special
nuclear materials and elimination of one Material Access Area within
the Plutonium Finishing Plant, enhancement of cyber security, Hanford
site security clearances and other security activities.
Accelerate risk reduction.--Accelerated risk reduction requires a
pragmatic approach to cleanup. Risk reduction occurs in various stages,
which involve the elimination, prevention, or mitigation of risk.
Because safe disposal of many materials will take a number of years to
complete, our major focus of risk reduction is stabilization of high-
risk materials.
The following categories of materials are considered to pose the
highest risk:
--High-curie, long-lived isotope liquid waste,
--Special nuclear materials,
--Liquid transuranic waste in tanks,
--Sodium bearing liquid waste in tanks,
--Deteriorating spent nuclear fuel in leaky or poor integrity basins,
--Remote-handled transuranic waste and high transuranic content
waste,
--Transuranic waste stored on the surface, and
--Decommissioning of highly-contaminated facilities.
Although all of these items are to be considered when setting
priorities, their relative ranking may vary from site to site. Risk
reduction is a major consideration in the development of the site
baselines. Examples of planned activities/milestones for fiscal year
2005 that correspond to site-specific risk categories are:
Hanford
Complete cleanout of K East and K West basins (fuel, sludge,
debris, and water).--The K basins are located less than 1,000 feet from
the Columbia River. This project involves packaging and removing
degrading spent nuclear fuel and radioactive sludge, debris, and water
from wet storage in the K Basins to safe, dry interim storage away from
the Columbia River. The K Basin facilities are well past their design
lives and are a major threat to the environment due to the potential
for basin leakage to the surrounding soil and the Columbia River. Their
cleanout will prevent potential leakage of 55 million curies of
radioactivity to the soil and the River and will decrease the risks
posed by the basins to human health and the environment.
Complete transfer of nuclear material to the Savannah River Site or
DOE approved interim storage facility, and complete legacy holdup
removal and packaging/disposition of material/waste.--The Plutonium
Finishing Plant (PFP) consists of several buildings that were used for
defense production of plutonium nitrates, oxides and metal from 1950
through 1989. Completion of the transfer of the stabilized materials
and legacy holdup material from PFP allows the cleanout and demolition
of these facilities to slab on grade. It results in a reduced National
security threat by consolidating nuclear materials into fewer
locations.
Ship all above-ground transuranic waste to the Waste Isolation
Pilot Plant.--Hanford has several thousand containers of previously
generated transuranic waste in above-ground storage buildings.
Characterization and shipment of this waste to the Waste Isolation
Pilot Project for final disposal will reduce the risks to facility
workers as well as reduce the safeguard and security vulnerability
associated with this waste. This action represents final disposal of
this waste in an environmentally protective repository.
Complete installation of In Situ Redox Manipulation Barrier in the
100-D Area.--Chromium-contaminated groundwater is reaching the Columbia
River in the 100-D Area. The contamination levels are above 20 times
the aquatic life water standard, and the area is adjacent to potential
salmon spawning locations. To address this, a series of wells will be
drilled and a chemical that detoxifies chromium will be deposited into
the matrix in which the groundwater travels to the river. As a result,
the groundwater reaching the Columbia River will once again meet the
aquatic water standards, thereby protecting human health and the salmon
population in the River.
Initiate waste retrieval from eleven single-shelled tanks.--
Radioactive liquid waste stored in older single-shelled tanks has the
potential of leaking and contaminating soil and groundwater that flows
to the Columbia River, presenting a risk to human health and the
environment. Waste will be retrieved from the single-shelled tanks and
moved to safer double-shelled tanks.
Idaho
Disposition 34 containers of special nuclear material containing
uranium, completing 75 percent of shipments offsite; initiate transfer
of spent nuclear fuel from CPP-666 wet storage to the Irradiated Fuel
Storage Facility; and maintain a running average of 2,000 cubic meters
per year of TRU waste shipped out of Idaho.--Idaho sits over a major
sole source aquifer, the Snake River Plain Aquifer, which is used to
supply water to the people of southeastern Idaho as well as irrigation
water for the significant agricultural activities. These actions will
reduce the potential risk to human health by preventing the migration
of contamination into the aquifer. It also will reduce the national
security threat by consolidating materials into fewer locations.
Paducah
Disposition 875 cubic meters of low-level/mixed low-level legacy
waste, allowing for a 37 percent completion of work.--The packaging and
disposal of low-level waste stored outdoors will reduce the waste
inventory and eliminate the potential release into the environment that
could result from deterioration of the storage drums. Outside storage
of this material in some cases leads to additional surface water and
soil contamination. Removal of these materials further reduces the
continued exposure to workers performing surveillance and maintenance.
Disposition 12,400 tons of scrap metal.--Scrap metal is a suspected
source of continued surface water and possible soil contamination. This
action contributes to the continued source term removal of contaminants
leaching into the environment. Reduction in the massive quantities of
scrap metal continues to improve the potential safety concern to our
workers.
Continue decontamination and decommissioning of C-410 complex.--The
C-410 Complex is a large chemical complex in a shutdown condition.
Removal of contaminated materials and equipment reduces potential risk
to onsite workers and represents a key step in stabilizing the facility
such that contaminants are prevented from release to the environment.
Portsmouth
Disposition 9,089 cubic meters of legacy waste.--The continued
shipment and disposal of legacy waste will proportionally reduce the
risk such wastes present to the health and safety of workers and reduce
the on-going potential for release to the environment.
Process approximately 42 million gallons of water through
Groundwater Pump and Treat facilities.--Plume control keeps
contaminants from reaching surface streams and off-site drinking water
supplies. Trichloroethylene (TCE), which was an industrial solvent, is
the main groundwater contaminant at the site.
Pantex Plant
Complete Zone 11 soil vapor extraction for removal of contamination
from the vadose zone and protection of the groundwater.--Removing the
soil gas contamination will avoid potential migration to a fresh water
supply, thereby reducing the risk posed to human health and the
environment.
Complete Burning Grounds landfills interim corrective measure
(engineered covers) to secure wastes and protect groundwater.--The
covers will mitigate the vertical transport of contaminants, which will
reduce the potential impact to the fresh water supply.
Complete demolition of Zone 10 Ruins.--The Zone 10 ruins have
suspected high explosives contaminants in the numerous disintegrating
structures. Removal of high explosive will avoid further contamination
of soils, and demolition of the ruins will reduce safety risks to
persons in the area.
Complete decontamination and decommissioning of Building 12-24
Complex.--There is evidence that this complex contributed to the high
explosives plume that migrated to the southeast and off-site.
Decontamination of the 12-24 Complex will mitigate the migration of
this plume.
Oak Ridge
Complete East Chestnut Ridge Waste Pile Closure.--Risks associated
with industrial safety will be reduced by eliminating the need to
excavate and transport the material to treatment subsequent to
disposal.
Complete disposition of legacy low-level waste.--Approximately 40
percent of the low-level waste was stored outdoors in deteriorating
containers. Disposition of this waste will decrease the risks
associated with their potential environmental release.
Complete processing and stabilization of transuranic waste tanks.--
This action will eliminate the potential for the waste's migration to
groundwater.
Initiate contact-handled transuranic waste processing at the Waste
Processing Facility.--This waste is stored in above grade-storage
trenches and in earthen trenches. Processing the waste prevents the
risk of release to the environment and a continued cost of waste
storage and monitoring.
Complete treatment of liquid low-level waste supernate at the Waste
Processing Facility and disposal of the dried supernate product at the
Nevada Test Site.--Treatment and disposal of the supernate decreases
the risks posed by these highly radioactive fission products.
Complete Atomic City Auto Parts.--This action will reduce the risks
posed to workers and the surrounding community from uranium and
polychlorinated biphenyls contamination in the soil.
Savannah River Site
Begin processing neptunium solutions.--SRS has approximately 6,000
liters of Neptunium-237 nitrate solution in H-Canyon. Through
processing, the neptunium solutions are converted into a more stable
form, and the risks they pose to human health and the environment are
reduced.
Complete bulk waste removal in Tank 5.--Tank 5 is 1 of 49
underground tanks currently used to store radioactive liquid waste at
the Savannah River Site. This waste represents one of the highest risk
to human health and the environment. Current plans call for the removal
of the waste from Tank 5 for treatment, stabilization and disposal. A
new approach, the Waste-On-Wheels (WOW) system, will be utilized to
remove the waste from Tank 5 and other tanks. The Waste-On-Wheels is a
portable method of performing bulk sludge waste removal from the tanks.
The WOW system will reduce the project schedule for waste removal and
therefore reduce the risk to human health and the environment imposed
by the highly radioactive waste.
Complete decommissioning of seven industrial and radioactive
facilities.--Decommissioning excess radioactive facilities will reduce
the footprint of the site, and therefore collectively reduces risk to
the worker by eliminating the need to enter the facilities to perform
required, routine surveillance and maintenance activities. Risk of
worker exposures while performing these activities is eliminated.
Decommissioning excess radioactive facilities also eliminates the
potential environmental and human health risk of accidental releases
from these facilities. Decommissioning industrial facilities eliminates
the risk to workers associated with having to maintain old facilities
which are no longer needed but which require regular inspections or
maintenance activities, such as roof work.
Lawrence Livermore National Laboratory--Livermore Site
Construct, install, and operate a portable treatment unit at
Treatment Facility D Hotspot, Treatment Facility E Hotspot, the
northern portion of the East Traffic Circle Source Area, and the
Treatment Facility 406 Hotspot area.--These actions will further
prevent the release of trichloroethylene (TCE), thereby reducing risks
to the public from exposure to contaminated groundwater.
Remove contaminated surface soil and contaminated sandpile at
Building 850.--These actions will mitigate risk to onsite workers, and
will prevent further impacts to groundwater above health-based
standards.
Construct, install, and operate groundwater extraction and
treatment facility.--Remediation of the high-explosive process area is
a high priority due to the offsite migration of contaminant plumes,
current impacts to onsite water-supply wells, and the inhalation risk
to onsite workers. These actions will impede the migration of plumes,
protecting offsite water-supply wells from contamination.
Maintain closure schedules.--Three major sites, Rocky Flats,
Fernald, and Mound, have accelerated closure schedules. In addition,
two smaller sites, Ashtabula and Battelle-Columbus are scheduled to
close in 2006. Funding in the fiscal year 2005 budget will allow these
sites to remain on track toward project completion and site closure.
At Rocky Flats, fiscal year 2005 funding provides for:
--Completing site deinventory of legacy low-level/mixed low-level and
transuranic waste to off-site disposal; completing remediation
of 30 release sites.--During fiscal year 2005, Rocky Flats will
be approaching completion of their commitment to closure and
conversion of the Rocky Flats site for future beneficial use.
The buildings where plutonium and other hazardous materials
were used in support of the nuclear weapons deterrent will be
under various stages of demolition, the final quantities of
radioactive wastes will be removed from the site, and the
grounds will be receiving the necessary remediation action.
These actions, when complete, will allow the Department of
Energy to release the site to the U.S. Fish and Wildlife
Service to become the Rocky Flats Wildlife Refuge with little
or no further risk to human health or the environment.
At Fernald, fiscal year 2005 funding provides for:
--Completing decontamination and dismantlement of the Waste Pits
Complex and the East Warehouse Complex, and completion of waste
pits remedial action operations.--Completing the Waste Pit
Remediation Project will result in over 1 million tons of waste
pit material having been transported off-site via rail for
safe, compliant disposal and the D&D of the treatment facility
and other waste pit infrastructures. Completing these
activities represents a substantial risk reduction to human
health and the environment for the entire Fernald Closure
Project site. This remediation activity is being conducted in
an extremely safe manner considering the industrial hazards
involved.
--Completing Silos 1 and 2 operations, including removal of waste
material, and beginning disposition of the waste for off-site
disposal.--Silos 1 and 2 Extraction and Treatment Operations
represent the greatest risk to human health and the environment
at the Fernald Closure Project. Silos 1 and 2 contain the
highest levels of radiological activity residing in any waste
stream at the site. The Silos 1 and 2 project constitute the
Site Closure Critical Path. Their successful completion is a
prerequisite for a timely and safe closure.
--Completing construction of the On-Site Disposal Facility Cell 3 and
Cell 4 caps.--Capping Cells of the On-Site Disposal Facility
(OSDF) will insure the reduction in risk to human health and
the environment during post closure. Overall, the OSDF will be
composed of 8 cells, containing 2.5 million cubic yards of
waste soil and debris. The OSDF has been designed and
engineered to possess a 5-foot thick liner and a 9-foot thick
cap. The OSDF has a design life of 1,000 years.
At Mound, fiscal year 2005 funding provides for:
--Completing remediation of 37 potential release sites (65 percent of
remaining), including the restoration of potential release site
(PRS) 66.--Completing the PRS's in fiscal year 2005 decreases
risk by preventing any further radioactive contamination from
migrating into clean soil areas and ground water, by reducing
potential exposure to site workers and other personnel located
on site, and by precluding any potential environmental impacts
to off site areas.
At Ashtabula, fiscal year 2005 funding provides for:
--Completing remediation of the Waste Management Unit.--Remediating
the Waste Management Unit significantly reduces the remaining
risks of organic and inorganic chemical exposure to both soil
and groundwater at the RMI site.
At Battelle-Columbus, fiscal year 2005 funding provides for:
--Completing decontamination/stabilization of the fuel storage pool
and transfer canal and the high-bay area surfaces in JN-1.--
Removing this source term will reduce the risk of
contamination, both internal and external, to the workers
during building de-construction. Removal of the source term
would also reduce risk to off-site areas and members of the
general public.
Integrate technology development and deployment.--An integrated
technology development and deployment program is an essential element
for successful completion of the EM cleanup effort and for fulfilling
post-closure requirements. The EM Technology Development and Deployment
(TDD) program provides technical solutions and alternative technologies
to assist with accelerated cleanup of the DOE complex.
EM technology development and deployment investments are focused on
high-payoff site closure and remediation problems through a two pronged
approach: Closure Projects and Alternative Projects.
Closure Projects.--Principal near term closure sites (such as Rocky
Flats, Fernald and Mound) will be provided with technical support and
quick response, highly focused technology development and deployment
projects. The goal is to ensure that accelerated site closure schedules
are achieved.
--At Rocky Flats closure site, technical assistance teams will assess
critical technical issues and provide technology alternatives
including the treatment and disposition of orphaned waste
streams and improved methods of beryllium decontamination.
--At Mound, innovative technologies will be developed to determine
and enable treatment of radioactive contaminated soil beneath
buildings.
--At Fernald, the vacuum thermal desorption demonstration will be
completed to provide a technical solution for an orphaned waste
stream, and technical support to the Silos No. 1, 2, and 3
waste removal and disposition will be successfully completed.
--At Oak Ridge, delineation of contamination and definition of
treatment feasibility for subsurface contamination will be
completed.
Alternative Projects.--Alternative approaches and step improvements
to current high-risk/high cost baseline remediation projects are our
second focus. The goal is to enable cleanup to be accomplished safely,
at less cost, and on an accelerated schedule. EM is focusing funds for
fiscal year 2005 on:
--Alternatives For Tank Waste Pretreatment and Immobilization
(Hanford Site, Office of River Protection);
--Alternatives for Carbon Tetrachloride Source Term Location (Hanford
Site, Richland);
--Alternatives for Disposition of High-Level Salt Waste (Savannah
River Site);
--Alternatives for Remediation of Chlorinated Ethenes using Monitored
Natural Attenuation (Savannah River Site);
--Alternatives for Deposit Characterization and Removal at Gaseous
Diffusion Plants (Portsmouth);
--Alternatives for In situ Transuranic Waste Delineation and Removal
(Hanford Site, Richland); and
--Alternatives for Non-Destructive Assay and Examination of Large
Transuranic Waste Containers (Savannah River Site/Carlsbad).
CONCLUSION
This year has seen dramatic results demonstrating our steadfast
belief that continuing on the accelerated path will provide the
direction and framework to resolve the problems that lie before us. As
with all new enterprises that seek to challenge the status quo,
impediments will be encountered. We must not lose our momentum that has
so earnestly been established through collaboration and a singular
focus of delivering meaningful results for the American public.
We are committed to employ our resources to show meaningful results
and we are taking a very staunch view of results. The job is not done
until it is done. We cannot be complacent, we must continue to do
better. It is not done when we develop a plan--it is not done when we
agree to a milestone--it is not done when we ask for funding--it is not
done when we sign a contract--it is not done when we get money. It is
not done until it's done and there is positive and measurable risk
reduction for the investment.
The only measure of success will be positive, measurable
accomplishments of public safety and environmental protection. The
longer we wait, the greater the potential risk. We must not lessen our
commitment to the American people to do the ``right thing''. I ask for
your support to continue this important work. We must avoid losing the
opportunity to rid this legacy from our children's inheritance. We are
safer today than we were last year and we must stay the course so we
are safer next year than today. We have accelerated cleanup by at least
35 years reducing lifecycle cost over $50 billion. The potential is
there to lose what we have gained should we fail to stay true to our
commitments.
I look forward to working with Congress and others to achieve this
worthy goal. I will be happy to answer questions.
EM'S COMPLEX WIDE PERFORMANCE MEASURES \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Actual
Lifecycle
Performance Measure Unit Fiscal Year Fiscal Year Fiscal Year Fiscal Year Through Lifecycle
2003 Target 2003 Actual 2004 Target 2005 Target Fiscal Year Scope
2003
--------------------------------------------------------------------------------------------------------------------------------------------------------
Pu packaged for long-term disposition...... No. Cont..................... 2,836 3,065 1,323 165 4,549 5,850
eU packaged for disposition................ No. Cont..................... 277 201 925 669 2,054 9,101
Pu/U residues packaged for disposition..... kg Bulk...................... 934 1,140 254 76 107,659 107,782
DU&U packaged for disposition.............. MT........................... 1,815 4,551 ........... ........... 7,651 742,149
Liquid Waste eliminated.................... gallons (1000s).............. 700 ........... 1,300 1,900 ........... 88,000
Liquid Waste Tanks closed.................. No. Tanks.................... 1 ........... 9 9 2 241
HLW packaged for disposition............... No. Cont..................... 130 115 250 250 1,727 18,735
SNF packaged for disposition............... MTHM......................... 857 807 633 1 1,446 2,420
TRU disposed............................... m3........................... 4,522 6,372 12,952 13,678 14,092 141,314
LL/LLMW disposed........................... m3........................... 75,030 118,362 89,815 107,067 402,568 1,155,360
MAAs eliminated............................ No. MAA's.................... ........... 1 1 1 6 14
Nuclear Facility Completions............... No. Facs..................... 2 4 5 14 21 523
Radioactive Facility Completions........... No. Facs..................... 7 24 45 67 148 804
Industrial Facility Completions............ No. Facs..................... 49 107 110 187 617 2,423
Geographic Sites Eliminated................ Sites........................ 2 1 ........... 2 76 114
Remediation Complete....................... No. Rel. Sites............... 214 260 200 283 5,186 10,374
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Each of EM's 16 corporate performance measures is quantitative and focuses on those materials, wastes, environmental media, and facilities that
comprise the majority of the risk to environment, public health, and safety. When these measures are completed, the EM program has accomplished its
mission. Each measure is tracked in the context of the total life-cycle on 2035 accelerated schedule. The corporate performance measures are under
strict configuration control, thereby establishing performance expectations and accountability. Through strict configuration control, EM is able to
make crucial corporate decisions that will keep the program on track, monitor and control costs, and manage site closure expectations.
Senator Craig. Secretary Roberson, thank you very much. Now
let me turn to Beverly Cook, Assistant Secretary, Environmental
Safety and Health. Bev, it's great to see you in this capacity.
I saw you more often in Idaho. I think that I saw you here, but
at any rate, welcome to the committee. Please proceed.
Office of Environment, Safety and Health
STATEMENT OF BEVERLY COOK, ASSISTANT SECRETARY
ACCOMPANIED BY BOB CAREY, SENIOR POLICY ADVISOR, OFFICE OF THE
SECRETARY, DEPARTMENT OF ENERGY
Ms. Cook. Thank you, Senator Craig. It's good to see you
again, too, and thank you, also, Senator Murray, for having me
here. I appreciate this opportunity to discuss the fiscal year
2005 budget request for the Office of Environment, Safety and
Health. It's sometimes not very clear exactly what the EH
organization does, so I wanted to discuss it in a little bit of
detail.
The mission of the Office of Environment Safety and Health
is to ensure that the Department of Energy performs work in a
safe, environmentally compliant manner. We fulfill that role by
assuring that considerations of safety and health and the
environment are integrated into all parts of the work that is
done, in all the planning and all the execution of all the
Department's work.
Our budget request in fiscal year 2005 is $135 million.
It's approximately level with that in fiscal year 2004
appropriations. In fiscal year 2005, we will partner with the
line management, and we will establish programs that promote
safe and environmentally compliant conduct, work and determine
the effectiveness of those programs, and provide improvements
and regulations where possible and where necessary to make sure
that those improvements happen.
The EH budget programs are split between both Energy Supply
and Other Defense Activities accounts, which is a little bit
confusing at times within the energy and water development
appropriations. However, the scope of the work in both of those
accounts are applicable across the Department, across what we
say and across everything that we do.
Our activities are split in areas of program and policies
and standards and guidance and also corporate safety programs,
health studies, and employee compensation. In addition, we have
a program direction account in both of those accounts that
cover our Federal staff, and that also sometimes gets to be a
bit difficult. Under Energy Supply account activities, we issue
policies, standards, and guidance to assure that the people,
property and the environment are adequately protected.
For most DOE facilities, the DOE assumes the regulatory
authority for safety and health as provided in the Atomic
Energy Act. These requirements must take into account the
unique nuclear, chemical and industrial hazards posed by the
DOE operations, must be current with worldwide technologies,
knowledge and experience, which is a large part of what we do,
making sure that we stay current. We use the best available
information.
In 2005, our nuclear safety policies and standards will be
enhanced to reflect updated commercial codes and standards, the
changing DOE missions and work environments and emerging safety
issues that are always encountered when we are working with
hazardous materials in aging facilities. We will continue our
interface with other agencies and organizations to ensure that
these policies and standards are consistent with other Federal
agencies and with the industrial regulations. We will use the
results of the many health studies that have taken place over
several decades to make sure that we have modified our policies
as appropriate to protect our workers.
Our environmental protection policies will also be enhanced
to reflect new and emerging environmental issues and
regulations and allow for compliance with external
environmental protection requirements in a cost-effective
manner. We review and provide comments on regulations developed
by other agencies to assure that DOE's unique operations are
fully considered and comply with those regulations, and we also
provide them the required documentation of the Department's
compliance with environmental standards and progress toward
meeting those environmental goals and radiation protection and
pollution prevention goals.
In our DOE-wide environmental safety and health programs,
we design programs to encourage and improve worker and nuclear
facility safety and protect the public and environment, and
that goes everywhere from things like the Department of Energy
laboratory accreditation program which provides assurance that
workers' records, exposure radiation records, are accurately
measured and documented, and also things like the VPP program,
the Voluntary Protection Program, which is highly recognized,
DOE's work in that, to make sure that workers are involved in
providing protection for themselves in their work place.
In fiscal year 2005, EH will develop the new DOE pollution
prevention goals for the next 5 years, and we will make sure
that we meet DOE's responsibilities under executive orders
related to pollution prevention and implementing of
environmental management systems within all of our work.
Environmental management systems are required of all
Federal agencies and must be in place by 2005. Those require
that you consider all environmental issues when you plan the
work, so that you make sure they are effectively implemented.
We will also provide cost-effective centralized environment,
safety and health information to the DOE complex through online
access to Environment Safety and Health industry standards,
programs, policies and activities. We want to make sure that
there is access to everyone to commercial standards and access
to historical Environmental Safety and Health information to
all people at all sites.
One of the things that we do now, one of the things that I
looked at this morning, is a ``rollup'' or summary of all the
occurrences that happen within the complex every 24 hours. The
rollup is communicated electronically throughout the complex,
and is available to everyone. The rollup is done weekly to
inform the Headquarters senior managers and the senior managers
throughout the complex about what's going on, what kind of
trends, what people are running into, and to make sure that
they learn from the lessons of others.
Under our Other Defense Activities account in the corporate
safety programs, we spend much of our time looking at the
synthesis of operational information, and through that, setting
ESH expectations, through our contracts, through performance
measures, and implementing of these ``lessons learned''
programs. Consolidating existing databases is a big part of
what we're doing right now and will continue to do through
2005. I will talk more later about the draft IG report.
The Computerized Accident/Incident Reporting System (CAIRS)
was a way of summarizing the OSHA-type statistics although it
is not our only way of collecting information. In the past,
information was shared by circulating paper reports. We
recognized that over a year ago that was not effective and that
there was a great time delay between the occurrences and
entering the paper information into the electronic system.
We've made a concerted effort over the last year to make sure
that we move to a fully electronic system with daily input and
weekly checks to make sure that the information is accurate.
We're working with the IG so that they fully understand the
changes that have happened to those systems and to make sure
that we no longer have a time delay in sharing information.
We have consolidated the quality assurance responsibilities
of the Department within the Office of Environment Safety and
Health and are making sure that we strengthen our quality
assurance methodologies. The RESL Program at Idaho, the
Radiological Environmental Science Laboratories, is now under
the purview of the Office of Environment Safety and Health.
In that laboratory we do analytical chemistry and radiation
exposure assessments, environmental sampling and certification,
and quality assurance. We also ensure that the data are
accurate as well as technically and legally defensible. We
continue to provide immediate environment safety and health
support, everything from accident investigations to
authorizations on a facility authorization basis. We
investigate safety allegations, perform special reviews on
nuclear hazards, fire protection, and a wide range of
operations.
EH also carries out the statutory mandate for the Price-
Anderson Amendments Act, where we enforce compliance of the
Code of Federal Regulations' nuclear safety requirements. In
fiscal year 2005, we will begin enforcement of worker
occupational safety and health requirements.
Our health responsibilities, which are under the Other
Defense Activities account, cover a wide range of issues. They
include occupational health, public health and epidemiological
studies and international health studies; international studies
make up the largest part of the EH budget. Under occupational
health, we will provide the medical screening that we provide
to our former workers at the Defense nuclear complex. We will
also try to upgrade our occupational medical services by
integrating it throughout the complex by including it in our
contracts, to make sure that we've got consistent and reliable
occupational medicine services across the complex.
We also will continue to support the Radiation Emergency
Assistance Center training site at Oak Ridge, the REAC/TS,
which provides rapid response for medical expertise and
training to address radiological accidents. Supporting REAC/TS
is critically important, especially when we move into concerns
about terrorist events.
Under public health, we will continue to fund the
independent program of energy-related epidemiological studies
that are done by HHS for us at DOE facilities. Many of those
studies, however, are coming to an end. In fiscal year 2005
some of those studies will require fewer dollars as they come
to the end. We document and publish the studies that have been
done. This concerns not only the communities surrounding our
sites but also our current and our former workers included in
those studies.
Finally, EH supports several international health programs.
Those include studies in Russia and in Japan of radiation-
exposed populations. The Russian studies are very relevant and
very interesting because they concern the kinds of exposures
that we've seen in some of our more exposed populations within
the DOE complex in the past. We also provide the support for
medical surveillance and environmental monitoring in Spain and
the Marshall Islands.
The Energy Employees Occupational Illness Compensation
Program is funded within the EH budget, and as you have seen in
our fiscal year 2005 budget submittal, there is a significant
increase. This is because we have recognized that the number of
applications greatly exceeded our original expectations, and
the Department is actively and aggressively pursuing a 3-year
program to completely eliminate the backlog of applications by
the end of fiscal year 2006. It will require significant
funding to do that. We have also implemented some reforms to
effect those improvements to get to that point.
Finally, let me just say a few words about our program
direction funding. As I said, it's in two different accounts.
We perform critical functions with Federal staff to directly
support the missions of the Department. It requires expertise
in developing overall environmental safety and health policies
for the DOE sites and the facility operations. We've taken
many, many steps over the last year and a half to streamline
our operations.
We've developed efficient processes such as reducing travel
or other fixed costs through use of video conference
capabilities to provide the training and information that's
necessary in the complex in everything from consolidating
office space to anything else we could think about. The number
of Federal employees in EH has decreased by almost half over
the last 5 years; that's a huge decrease.
Large funding reductions in fiscal year 2004 put at risk
EH's ability to meet the demands of the DOE complex. We have to
prioritize what we do and where we assist the program offices.
The requested funding level in fiscal year 2005 will
restore the level of resources commensurate with the
responsibilities of the office, and I think that is critical to
do.
PREPARED STATEMENT
So thank you for this opportunity. I believe our
administration's 2005 budget request for the Office of
Environment Safety and Health reflects the level of funding
that is needed to protect the workers and the public in our DOE
sites in a cost-effective manner. I'd be happy to answer any
questions that you have.
[The statement follows:]
Prepared Statement of Beverly Cook
Mr. Chairman, Members of the subcommittee, I appreciate the
opportunity to testify on the fiscal year 2005 President's Budget
request for the Office of Environment, Safety and Health (EH).
The mission of the Office of Environment, Safety and Health is to
ensure that the Department of Energy (DOE) performs work in a safe and
environmentally compliant manner. EH fulfills that role by assuring
that consideration for the safety and health of the DOE workforce and
members of the public and protection of the environment are integrated
into the planning and execution of all Departmental activities.
The Office of Environment, Safety and Health fiscal year 2005
budget request is $135 million, approximately level with the fiscal
year 2004 appropriation. This level of funding allows EH to leverage
its resources and personnel to provide DOE's line management programs
with essential environment, safety and health performance expectations;
management tools to promote the safe conduct of work; environment,
safety and health performance measures and analysis; and guidance for
the protection of the environment in and around DOE sites. Integral to
the Department's success is EH's skill in fostering increased awareness
and providing support to line management throughout the Department
using open and easily accessible communications tools. Our goal is to
provide the safety infrastructure that allows for and promotes the safe
and environmentally responsible conduct of work.
EH has traditionally filled the role of setting regulations and
standards, and then providing independent oversight and enforcement to
ensure the Department's compliance with those standards. The
independent oversight functions were moved from EH in 2002, allowing EH
to provide corporate environment, safety and health services. EH now
serves as a partner with DOE Line Managers to establish programs that
promote the safe and environmentally compliant conduct of work, to
determine the effectiveness of those programs and to improve the
programs and regulations when necessary.
In support of the President's Management Agenda, EH underwent a
dramatic restructuring in 2003 to better perform its new role within
the DOE. The restructuring allowed for cutting management layers,
placing greater emphasis on corporate performance and quality
assurance, and focusing more on e-government initiatives by
consolidating databases and other electronic information management
functions. The implementation of the new organization is continuing
through 2004. The major challenge in 2005 will be succession planning.
It is the responsibility of EH to assure appropriate technical
expertise is available to support environment, safety and health
concerns. As more of the DOE complex reaches retirement age, we are
concerned that the necessary technical expertise may be lost, both in
the headquarters and field operations, and in EH, where corporate
expertise to support the program activities is required.
The scope of work performed by EH staff is multifaceted. I will now
provide you with a description of the specific activities identified in
the President's request for the Office of Environment, Safety and
Health.
ENVIRONMENT, SAFETY AND HEALTH FISCAL YEAR 2005 BUDGET REQUEST
The Environment, Safety and Health programs are split between the
Energy Supply and Other Defense Activities accounts within the Energy
and Water Development appropriation. However, the scope of work often
cuts across these funding lines because of the generic nature and cross
cutting applicability of the work performed by EH. It is important that
a framework is in place that is clear and easily understood by the DOE
Federal and Contractor workforce, and the overall safety and
environment goals of the Department are consistent throughout the DOE
complex.
ENERGY SUPPLY
Fiscal Year 2004 Comparable Appropriation--$22,564,000: Fiscal Year
2005 Request--$30,474,000.
EH activities funded within the Energy Supply appropriation are
concentrated into two programmatic areas: Policy, Standards and
Guidance and DOE-Wide Environment, Safety and Health Programs. In
general, work funded under this account is applicable to all of the DOE
operations. In addition, a Program Direction decision unit includes
funding for a portion of EH Federal staff and all of the EH Working
Capital Fund.
Policy, Standards and Guidance
Fiscal Year 2004 Comparable Appropriation--$1,799,000; Fiscal Year
2005 Request--$4,205,000.
Policy, standards and guidance are issued to assure that people,
property and the environment are adequately protected from the hazards
of DOE activities. For most DOE facilities, DOE assumes direct
regulatory authority for safety and health as provided by the Atomic
Energy Act of 1954, as amended. Safety and quality assurance policy,
standards and guidance must therefore take into account the unique
nuclear, chemical and industrial hazards posed by DOE operations and
must be current with worldwide technologies, knowledge and experience.
EH must establish nuclear and facility safety requirements and
expectations for working with workplace hazards and safety issues
unique to our operations.
In fiscal year 2005, DOE nuclear and facility safety policies and
standards will be enhanced to reflect updated commercial codes and
standards, changing DOE missions and work environments, and emerging
safety issues that are encountered continuously when working with
hazardous materials and in aging facilities. We will continue our
interface with the Occupational Safety and Health Administration, the
U.S. Nuclear Regulatory Commission, the National Aeronautics and Space
Administration, and Federal Departments of Transportation, Health and
Human Services, Homeland Security, and the Defense Nuclear Facilities
Safety Board to ensure DOE policies and standards are consistent with
other Federal and industry regulations and are based on best available
information. EH will also maintain close ties with national and
international standards and regulatory bodies and various industry
groups, such as the Institute of Nuclear Power Operations and the
Energy Facilities Contractors Group. In fiscal year 2005, EH will
continue to utilize the results of epidemiologic studies performed
under other parts of the EH programs and modify worker safety and
health policies as appropriate to improve protection of the workers. EH
will also strengthen the Federal Employee Occupational Safety and
Health program, which provides for protection of our Federal workforce.
Environmental protection policies will also be enhanced to reflect
new and emerging environmental issues and regulations. EH will assist
Programs to comply with external environmental protection requirements
in a cost-effective manner and continue to develop timely guidance to
assure understanding of newly promulgated environmental requirements.
We will review and provide agency comments on regulations under
development by other agencies, to assure that DOE's unique operations
are fully considered. EH will also provide the required documentation
of the Department's compliance with environmental standards and
progress towards meeting performance goals for radiation protection and
pollution prevention.
The increase in this account is due to moving the technical
standards activities from DOE-Wide programs to Policy standards and
guidance. This puts all of the policy and standards setting activities
into one account. Increased membership fees for participation in the
industry nuclear power group are also included.
DOE-Wide Environment, Safety and Health Programs
Fiscal Year 2004 Comparable Appropriation--$5,068,000: Fiscal Year
2005 Request--$5,795,000.
EH's DOE-Wide Environment, Safety, and Health (ES&H) Programs are
designed to encourage and improve worker and nuclear facilities safety
and protect the public and the environment. EH has developed state-of-
the-art analysis tools and approaches, due to the unique nature and mix
of radioactive, hazardous, and toxic materials at DOE facilities.
EH has responsibility for the Department of Energy Laboratory
Accreditation Program (DOELAP). DOELAP is an accreditation
(certification) program that provides assurance that worker radiation
exposures are being accurately measured. DOE's nationally recognized
Voluntary Protection Program (VPP), managed by EH, has resulted in
enhanced worker safety protection. In fiscal year 2005, DOE will
continue to re-certify DOE contractor VPP status and evaluate new
applications for VPP status.
In fiscal year 2005, EH will develop new DOE pollution prevention
goals for recycling and reduced toxic chemical use. Consistent with the
new, Department-wide pollution prevention program plan to be developed
during fiscal year 2004, EH will provide a roadmap for continuous
improvement in DOE's pollution prevention efforts. We will also provide
instruction and guidance to meet DOE's responsibilities under Executive
Orders related to pollution prevention and implementation of
environment management systems. EH will continue to guide all DOE
programs in their planning and execution of complete National
Environmental Policy Act (NEPA) analyses and conduct independent
compliance assurance reviews for more than 15 major Environmental
Impact Statements and related documents.
EH provides cost-effective management of centralized environmental,
safety, and health information to the DOE complex. We will provide on-
line access to environment, safety and health related industry
standards, programs, policies and activities; access to a commercial
standards subscription service; and access to historical environmental
safety and health information for all DOE operations and sites.
The slight increase in this account is the net result of a large
increase in the resources required to implement the new Worker Safety
and Health rule, coupled with a decrease from moving the technical
standards work to the Policy, Standards and Guidance account.
Program Direction
Fiscal Year 2004 Appropriation--$15,697,000; Fiscal Year 2005
Request--$20,474,000.
Program Direction in this account provides overall support for EH
staff responsible for Energy Supply programs, includes salaries,
performance awards and other benefits; all costs of transportation and
expenses for Federal employees in accordance with Federal Travel
Regulations; the EH Working Capital Fund for all EH staff, including
those with salaries paid under Other Defense; and training for Federal
staff. The Working Capital Fund provides for non-discretionary prorated
costs for items such as space utilization, computer and telephone
usage, mail service, and supplies. Also included is funding for
competitive sourcing studies.
EH performs critical functions which directly support the mission
of the Department. The EH mission requires experts to develop overall
environment, safety, and health policy for DOE sites and facility
operations and to provide a central and coordinated source of technical
expertise to all field elements. EH provides a central clearing house
for information, and analysis and feedback regarding new efforts,
present activities, and unforeseen occurrences taking place at the
multitude of diverse facilities within the DOE complex.
EH has taken many steps to streamline and develop more efficient
internal processes in order to reduce costs. For example, EH has
reduced travel and other fixed costs through the use of video
conference capabilities and other innovative techniques. Furthermore,
the number of Federal employees in EH has decreased by almost half in
the last 10 years. However, the large funding reductions in fiscal year
2004 put at risk EH's ability to meet the demands of the DOE complex.
Therefore, the increase in fiscal year 2005 will restore the level of
resources commensurate with the roles and responsibilities of the
office.
OTHER DEFENSE PROGRAMS
Fiscal Year 2004 Comparable Appropriation--$119,366,000; Fiscal
Year 2005 Request--$104,519,000.
The EH Other Defense Activities are concentrated into three
accounts: Corporate Safety Programs, Health Studies and Employee
Compensation. These activities address the needs and issues related to
a variety of Defense related program activities being conducted by the
Department. In addition, a Program Direction decision unit includes
funding for the salaries and benefits of a portion of the EH Federal
staff and their travel and training.
The fiscal year 2005 budget request also includes funding for two
Other Defense Activities programs that were transferred to EH from the
Office of Environmental Management (EM) in fiscal year 2004. These are:
(1) the Radiological and Environmental Sciences Laboratory (RESL) at
Idaho, and (2) the Analytical Services Program. These programs help to
ensure that analytical laboratory data and worker radiation exposure
and environmental samples are of high quality and reliability. These
programs support the quality of data used throughout the Department and
are more closely aligned with EH's quality assurance function than EM's
mission of accelerated risk reduction and site closure.
Corporate Safety and Health Program
Fiscal Year 2004 Comparable Appropriations--$9,032,000; Fiscal Year
2005 Request--$10,883,000.
The Corporate Safety Program serve a crosscutting safety function
for the Department and its stakeholders in assessing, achieving and
assuring excellence and continuous improvement in safety management and
performance in the conduct of its missions and activities. Several
tasks are included in Corporate Safety Program.
In fiscal year 2005, EH will provide analysis and certification of
DOE's performance in protecting the public, workers, and the
environment by synthesizing operational information. This supports
decision-making and continuous ES&H improvement across the DOE complex.
We will support the setting of ES&H performance expectations through
contracts and performance measurements and implement a lessons learned
program. Our ES&H web sites and web-based database systems will be re-
engineered in fiscal year 2005 to consolidate existing databases and
utilize the most recent technology to distribute information in an
efficient and effective manner. Because EH now has overall
responsibility for DOE Quality Assurance, we will provide quality
assurance information, corporate policy and guidance, and certification
for activities such as Contractor Self-Assessment Programs. We will
conduct performance evaluation and accreditation, technical support and
measurements, and quality assurance methodologies through RESL. EH will
also provide a process to ensure DOE environmental data is of high
quality and reliability as well as technically and legally defensible.
The increase in this account reflects the implementation of EH's new
responsibilities related to Department-wide quality assurance.
To address immediate environment, safety and health issues, EH will
perform accident investigations, facility authorization basis reviews,
and safety allegation investigations. We will also conduct special
safety reviews of nuclear hazards, criticality safety, seismic
analysis, fire protection, emergency operations, facility design, and
the startup and restart of facilities upon request of the Program
offices. EH will continue to carry out the statutory mandate of the
Price-Anderson Amendments Act of 1988 to enforce compliance with Code
of Federal Regulations nuclear safety requirements at DOE sites and
begin enforcement of the Worker Occupational Safety and Health Rule.
Health
Fiscal Year 2004 Comparable Budget--$67,335,000; Fiscal Year 2005
Request--$45,222,000.
The EH Health responsibilities are to establish and enhance the
scientific bases for standards that provide levels of protection
appropriate to the risk of the hazards present at DOE sites. This
responsibility is included in four general areas: Occupational Health
(corporate occupational medicine policy); Public Health (community
bases health studies); Epidemiologic Studies (analysis and
communication of worker injury and illness information); and
International Health Studies.
There are several activities related to occupational health.
Targeted medical screening will be provided to former workers of DOE's
defense nuclear complex. Standards, policies, and corporate resources
will be provided to efficiently delivery quality occupational medical
services in an integrated manner to the current DOE workforce. In
fiscal year 2005, EH will work to implement occupational medicine model
contract language to ensure adequate and integrated occupation health
programs at all DOE sites. EH will continue to support the Radiation
Emergency Accident Center/Training Site (REAC/TS), which provides rapid
response medical expertise and training to address radiological
accidents.
Public health will be addressed through independent energy-related
epidemiologic studies relevant to DOE workers and neighboring
communities by the National Institute for Occupational Safety and
Health, the National Center for Environmental Health, and the Agency
for Toxic Substances and Disease Registry. These studies will inform
the DOE and stakeholders of any adverse health impacts that DOE
operations may have had on DOE workers and the public. In addition, DOE
epidemiologic studies will be conducted that collect and analyze both
medical and exposure data information for both current DOE workers and
the public.
EH will support several international health program studies in
order to upgrade and validate our knowledge of radiation health effects
among workers and populations exposed to ionizing radiation or
environmental contamination. DOE and the National Cancer Institute will
jointly sponsor international studies to determine if there are any
adverse health effects from exposure to radiological contamination from
Chernobyl on the populations of Belarus, Ukraine, and Chernobyl cleanup
workers, and epidemiologic studies of Russian workers at the Mayak
Production Facility and other facilities in Russia. These studies will
identify the level of radiation exposure where adverse health effects
can be demonstrated for a large worker population exposed to low and
moderate levels of radiation over a working lifetime and support the
establishment of international and national radiation protection
standards and policy. The DOE and Spain jointly sponsored Project
Indalo will provide support for medical surveillance and environmental
monitoring of the spread of plutonium contamination on a few hundred
acres of land in southern Spain. In addition, EH will provide special
medical care for a specific group of radiation-exposed individuals in
the Marshall Islands and support the Radiation Effects Research
Facility (RERF) in Japan, which conducts epidemiologic studies and
medical surveillance for the Hiroshima and Nagasaki exposed population.
A decrease in this account reflects the absence of some programs
that were congressionally directed in fiscal year 2004 and an
assumption of reduced funding for certain international studies as they
approach their conclusion.
ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION PROGRAM
Fiscal Year 2004 Comparable Appropriation--$25,646,000; Fiscal Year
2005 Request--$43,000,000.
The Energy Employees Occupational Illness Compensation Program Act
of 2000 (EEOICPA) authorized DOE to establish a process to assist
employees of DOE contractors and their survivors with their
applications for State workers compensation benefits. Around the time
that EEOICPA was passed in 2000, and given the complexity of the
process mandated in the authorizing legislation and the expected
complexity of the physician panel reviews to be conducted, DOE had
planned that it would take 10 years to completely review all
applications. However, as the number of applications greatly exceeded
original expectations, and the applicants' immediate need for this data
to effectively pursue State workers compensation claims became clear,
the Department has pursued a 3-year program to completely eliminate the
backlog of applications by the end of fiscal year 2006.
The fiscal year 2005 budget includes $43 million to maintain the
accelerated schedule for EEOICPA activities. Together with additional
funds reprogrammed from fiscal year 2003 and additional funds that have
been requested to be reprogrammed in fiscal year 2004, this funding
should enable DOE to significantly expedite the process through fiscal
year 2004, complete the processing of all applications currently on
file with DOE in fiscal year 2005, and completely process all of these
applications through the Physicians Panels in fiscal year 2006. The
Department has also implemented reforms that have already improved
performance. In August 2003 the program processed 30 cases per week.
But with process improvements and the final approval in fiscal year
2003 of $9.7 million in transferred funds in September 2003, the rate
has more than tripled to over 100 per week, and continues to rise. The
Department also recently made changes to its regulations to expedite
the processing of applications and currently is discussion with other
Federal agencies and stakeholders possible legislative changes to
address impediments to effective program implementation.
The significant increase in this account for fiscal year 2005
supports expedited processing of applications.
Program Direction
Fiscal Year 2004 Comparable Appropriation--$17,853,000; Fiscal Year
2005 Request--$20,414,000.
Program Direction in this account provides for the salaries and
benefits of a portion of the EH Federal staff, their travel and
training. The Working Capital Fund, the non-discretionary prorated
costs for items such as space utilization, computer and telephone
usage, mail service, and supplies for all EH staff, is budgeted under
the Energy Supply account. In this account, Program Direction also
includes funding to support the Federal RESL and the Analytical
Services Program staff. As with the Energy Supply account, the large
funding reductions in fiscal year 2004 put at risk EH's ability to meet
the demands of the DOE complex. Therefore, the increase in fiscal year
2005 will restore resources commensurate with the roles and
responsibilities of the office.
CONCLUSION
Mr. Chairman, we believe the administration's fiscal year 2005
budget request for the Office of Environment, Safety and Health
reflects a level of funding to ensure protection of the workers and
public near DOE sites and allows for the accomplishment of the critical
work performed by DOE in a cost effective manner. It is critical that
the Federal Government maintain the expertise to evaluate and direct
operations to maintain a level of safety and environmental compliance
the public and the Congress expects.
This completes my prepared statement, and I am happy to answer any
questions the subcommittee may have.
Senator Craig. Secretary Cook, thank you very much for
being before the committee this morning. Now let us turn to Dr.
Margaret Chu, Director, Civilian Radioactive Waste Management.
Doctor, welcome again before the committee.
Office of Civilian Radioactive Waste Management
STATEMENT OF MARGARET CHU, DIRECTOR
Dr. Chu. Thank you, Senator Craig and Senator Murray. I
very much appreciate the opportunity to present our fiscal year
2005 budget request from the Office of Civilian Radioactive
Waste Management. Our key objective is to begin receiving waste
at Yucca Mountain in 2010. The schedule is tight and the
consequences of delay are enormous. Fiscal year 2005 is a
critical year in which important activities must be initiated
and start to converge. Our total budget request is $880
million. While this is an increase over historical funding
levels, it is one that has been understood and carefully
planned for many years.
We are positioned to commit funds responsibly and
effectively. Out of the total budget request of $880 million,
the amount requested for the Repository Project is $559
million. Our foremost funding priority is to meet our
longstanding goal of submitting a high quality license
application to the NRC in December of 2004. We are on track.
Quality and completeness are paramount. The application we
submit will meet NRC's regulatory requirements and be
docketable by the NRC. After the license application is
delivered, we must be prepared to respond to queries and
requests that NRC will make during the review. We expect that
NRC's review would be very thorough and very rigorous, and our
objective is to provide information in a timely and effective
manner to support completion of NRC's review within the
statutorily established time period.
There will also be continuing technical work, including
ongoing testing programs as part of the performance
confirmation. In parallel with the licensing process, we must
focus on detailed repository design and ensure that the site is
ready to support construction as soon as it is authorized by
the NRC. We will be initiating activities related to long lead
time procurements, prototyping and testing of engineered
components and equipment, and we are also requesting funds to
address safety-related needs at the site.
In the area of transportation, our request is $186 million.
One of the key activities will be the first phase of
acquisition of long lead-time transportation casks and
equipment which must begin now to provide the capability for
waste acceptance in 2010. We are working with industry to
procure an efficient cask fleet with the minimum number of
separate designs. We will support expanded institutional
interactions as we begin to establish preliminary routes,
operating protocols and safeguard and security activities. We
will continue to work on policy for emergency response training
and technical assistance as required by the Nuclear Waste
Policy Act.
State and tribal officials and other stakeholders will play
an integral part in our transportation planning. In the area of
Nevada transportation, we recently announced a preferred rail
corridor and the proposed work in fiscal year 2005 includes
completion of conceptual design and the beginning of
preliminary design activities and issuance of the draft
environmental impact statement for the rail alignment.
Some of this is contingent on the Department's issuing a
record of decision selecting a mode of transportation and a
rail corridor as appropriate. We expect to issue the decision
very shortly.
Finally, many of us, including the Congress, have been
aware for many years that funding requirements for Yucca
Mountain would increase substantially as we approach
construction and transportation system development. Historical
appropriation levels will not be sufficient to meet these
needs. Since 1995, the cumulative shortfall of funds between
requested and appropriated amount exceeded $700 million. A
mechanism must be put in place now to allow the program to have
ready access to the Nuclear Waste Fund without being
constrained by funding pressures from other programs.
In accordance with the funding approach established in the
Nuclear Waste Policy Act, the Department collects fees from
nuclear utilities for the disposal of their spent nuclear fuel.
In fiscal year 2005, an estimated $749 million will be
collected. The resources are there and we should not delay in
making them available for their intended purpose.
Secretary Abraham has recently sent proposed legislation to
the Congress that would reclassify the annual receipts that are
deposited into the Nuclear Waste Fund as discretionary and
credit them as offsetting collections. Under this proposal, the
proposal will continue to be subject to an annual appropriation
process and continue to be under Congress' oversight, however,
without having to compete with other programs for funds.
If sufficient appropriations are not available, the Nation
will not have an operating repository in 2010. Delays will mean
an additional cost of nearly a billion dollars per year for
waste sites to continue to provide temporary storage. The
country would be forced to spend billions of dollars in this
scenario without solving the problem.
PREPARED STATEMENT
In conclusion, we are ready to submit a high-quality
license application to the NRC in December of 2004 and we are
committed to begin operations at a licensed repository in 2010.
We have reached a point where investment must be made in
transportation, repository and waste acceptance readiness. I
urge your support for our budget request to accomplish this
vital national mission. Thank you very much.
[The statement follows:]
Prepared Statement of Margaret Chu
Mr. Chairman and members of the Committee, I am Margaret Chu,
Director of the Department of Energy's (DOE) Office of Civilian
Radioactive Waste Management (OCRWM). I appreciate the opportunity to
present our fiscal year 2005 budget request and discuss our plans to
license, build, and operate a geologic repository at Yucca Mountain in
Nevada, and our efforts to develop the transportation system needed to
deliver spent nuclear fuel and high-level radioactive waste to the
repository.
OCRWM implements our Nation's radioactive waste management policy,
as established by the Nuclear Waste Policy Act of 1982, as amended.
This policy requires safe, permanent geologic disposal of spent nuclear
fuel and high-level radioactive waste resulting from the Nation's
atomic energy defense activities. The disposal of this material in a
geologic repository is required to maintain our energy options and
national security, to allow the cleanup of former weapons production
sites, to continue operation of our nuclear-powered vessels, and to
advance our international nonproliferation goals. The Department's
consolidation of spent nuclear fuel and high-level waste from 127 sites
at a single secure, remote location is vital to our national interest.
The Federal Government is contractually required to implement a
permanent solution for management of commercial spent nuclear fuel, in
return for which utilities and ratepayers have paid fees to cover the
costs of disposal.
THE 2010 OBJECTIVE
The Program's key objective remains to begin receiving waste at the
Nuclear Regulatory Commission (NRC) licensed Yucca Mountain repository
in 2010. To achieve that objective, the Program must, in less than 7
years, seek and secure authorization to construct the repository from
the NRC, begin constructing the repository, and receive a license
amendment allowing receipt of waste and operation of the repository. We
must also develop a transportation system to transport waste from
civilian and defense storage sites to the repository. That is a tight
schedule, and the consequences of delay are significant.
For every year of delay beyond 2010, the cost of storing and
handling Departmental defense waste alone is estimated to increase by
$500 million. Regarding the nuclear utilities, the government's
liability for damages for not beginning to take commercial spent fuel
in 1998 already has been established by court decisions. While an
accurate calculation of damages must await determinations by the
courts, it is reasonable to assume that the amount of damages will be
substantial and will increase with each year of delay.
Meeting the 2010 objective will require much greater resources than
the Program has thus far received. We estimate, for example, that from
2005 to 2010 it will cost about $8 billion--more than 80 percent of the
budget required to meet the 2010 objective--to construct the repository
and develop the transportation system. That would average more than $1
billion a year, which is much higher than our previous annual
appropriations.
THE FISCAL YEAR 2005 BUDGET REQUEST
Fiscal year 2005 is a critical year in which important activities
must converge if we are to meet the 2010 objective. In fiscal year
2005, we will be fully engaged in the licensing process. At the same
time, we must initiate certain activities in the near term to permit
timely construction and ensure readiness for operations. These
activities, in the areas of repository readiness and detailed design,
transportation system development, and waste acceptance readiness--
along with licensing activities--lead to our total budget request for
fiscal year 2005 of $880 million. While this is a significant increase
over historical funding levels, it is an increase that has been
carefully planned and understood for many years. We are confident that
we are positioned to commit funds responsibly and effectively to defend
the license application; to accelerate repository surface, subsurface,
and waste package design work needed for construction authorization;
and to conduct conceptual and preliminary design activities for Nevada
transportation. Moreover, a major portion of the increase represents
procurements, including transportation cask acquisition and important
repository site safety infrastructure upgrades.
To set the stage for our fiscal year 2005 budget request, I would
like to briefly describe OCRWM's fiscal year 2003 accomplishments, our
ongoing activities based on our fiscal year 2004 appropriation, and our
goals for fiscal year 2005.
FISCAL YEAR 2003 ACCOMPLISHMENTS
Having achieved Congressional and Presidential approval of the
Yucca Mountain site in 2002, we successfully transitioned from a
scientific study program to one focused on the regulatory requirements
for obtaining a license from the NRC. We targeted five areas critical
to licensing success in a broad Management Improvement Initiative:
roles, responsibilities, authority and accountability; Quality
Assurance; procedural compliance; the Corrective Action Program; and
Safety Conscious Work Environment. We implemented a Program-wide
functional realignment to create an organization focused on licensing,
and we strengthened our Federal management team by bringing on board
several senior managers with extensive experience in managing major
Federal projects. These actions have positioned us to be a successful
NRC licensee and to meet requirements for operating a repository
safely, and will continue into fiscal year 2005.
Fiscal year 2003 brought significant challenges to our Program. The
limited funding provided during the continuing resolution and the final
fiscal year 2003 appropriation of $457 million, which was $134 million
below our request, required us to institute contingency plans, reduce
near-term work scope, and further delay transportation activities that
are directly tied to our ability to meet the 2010 objective. Rather
than stretch our resources and risk the safety of our workers, we
elected to partially close the Yucca Mountain site and to defer some
work there. The focus of our efforts under these constraints was to
maintain our goal of submitting a high-quality license application to
the NRC in December 2004.
The Program prepared a conceptual design and a detailed plan for
repository licensing, construction, and operation, and focused on
completing the license application to the NRC for authority to
construct the repository. By the end of fiscal year 2003, the Yucca
Mountain Project had accomplished the following:
--Completed the conceptual design of the repository surface and
underground facilities and waste package elements sufficient
for development of the preliminary design for the license
application.
--Completed materials testing and analyses required to support the
license application design for the waste package and surface
and subsurface facilities.
--Completed testing data input for the Total System Performance
Assessment Post-closure Report, to be included in the license
application.
--Initiated the development of the license application document.
--Identified Project records and technical documents that will be
included in the licensing support network.
In addition, during fiscal year 2003, the OCRWM National
Transportation Project drafted the ``Strategic Plan for the Safe
Transportation of Spent Nuclear Fuel and High-Level Radioactive Waste
to Yucca Mountain'', which was issued in November 2003.
Throughout the Program, we implemented management improvements
identified in the President's Management Agenda. In fiscal year 2003,
DOE was ranked number one among all Federal agencies in implementation
of the President's Management Agenda.
During fiscal year 2003, the Program launched its new and more
rigorous Corrective Action Program (CAP) software system. The new CAP
combined condition, nonconformance, and technical error reports, and
the condition/issue identification and reporting/resolution system into
a single entry point process.
FISCAL YEAR 2004 ONGOING ACTIVITIES
Yucca Mountain Project
Consistent with Departmental and Program objectives, the Yucca
Mountain Project's main focus in fiscal year 2004 is on completing the
license application. The required elements of preliminary design,
performance assessment, safety analyses, and technical data in the
license application must be sufficient for the NRC to conduct an
independent review and reach a decision to issue a construction
authorization. The application must demonstrate that the repository can
be constructed and operated with reasonable expectation that the health
and safety of the public will be protected.
By the end of fiscal year 2004, with the funds appropriated, we
will:
--Address all ``key technical issue'' agreements that the Department
and NRC agree the Program needs to address prior to license
application submittal.
--Complete required elements of the preliminary design for the waste
package, surface facilities, and subsurface facilities in
support of the license application.
--Complete the safety analyses for Department-owned spent nuclear
fuel and high-level radioactive waste, and Naval spent fuel for
the license application.
--Complete the total system performance assessment postclosure report
in support of the license application. This report will reflect
increased understanding of how emplaced nuclear waste will
interact with the natural and engineered barriers after the
repository is closed.
--Prepare tens of millions of pages of relevant documentation for
inclusion in the electronic Licensing Support Network (LSN) and
completed certification consistent with the requirements of 10
CFR Part 2, Subpart J.
--Complete a draft of the license application.
Even though site characterization is complete, in fiscal year 2004
we are continuing to collect valuable scientific information for the
Performance Confirmation baseline. The NRC requires Performance
Confirmation to continue until the repository is permanently closed.
National and Nevada Transportation Projects
As noted previously, we issued the ``Strategic Plan for the Safe
Transportation of Spent Nuclear Fuel and High-Level Radioactive Waste
to Yucca Mountain'' in November, which described the Department's
process for working cooperatively with States, tribes, and other
interested parties as the transportation system is developed. In early
fiscal year 2004, the transportation program focused on selecting the
transportation mode and corridor that would establish the
transportation system's infrastructure requirements. In December 2003,
we announced a preferred corridor for development of a branch rail line
in Nevada to connect from an existing rail line to the Yucca Mountain
site. The program is now defining infrastructure development projects
to provide the capability for transporting spent nuclear fuel and high-
level waste to the repository. Funding in fiscal year 2004 represents
initial investments in major transportation infrastructure needs,
including transportation casks, rolling stock, the transportation
system in Nevada, a fleet maintenance facility, and the business
systems needed to manage multiple procurements and construction
projects.
Program Management and Integration
A key component of the Program Management and Integration budget
element is Quality Assurance (QA). In the last year, we have made
significant progress in the implementation of our QA program
requirements. We have had several independent assessments that have
determined that the QA program is being effectively implemented. We
have also completed the actions and closed several of the significant
QA issues that have been open for extended periods of time. Finally, we
are preparing a major revision to our QA program document in support of
the license application.
During this fiscal year, we have taken several steps to ensure we
are prepared to manage major capital projects efficiently and cost-
effectively. We submitted a detailed Capital Asset Management Plan for
the Program to the Office of Management and Budget in November 2003,
and are now working to complete a comprehensive program acquisition
strategy that will be incorporated in the next update of the Plan next
fall. We have strengthened our performance measurement and project
management capabilities and systems, and are using them to monitor and
manage all the activities that support license application completion.
FISCAL YEAR 2005 KEY ACTIVITIES
Yucca Mountain Project
The amount requested for the repository project in fiscal year 2005
is $558.9 million, an increase of $155 million over our fiscal year
2004 enacted level. The primary drivers for this increase are
repository facility design, prototype development and testing,
procurement in preparation for underground excavation, design of
offsite utilities and infrastructure, and support for responding to
technical questions on the license application.
Our initial focus will be on submitting the license application by
December 2004. The license application, expected to be approximately
10,000 pages, will include a description of site characteristics; waste
package, repository surface and subsurface designs; the basis for
development of operations and maintenance plans for surface and
subsurface facilities; safety analysis results for the period prior to
permanent closure; total system performance assessment results for the
post-closure period; and a discussion of how the proposed waste package
and repository will comply with applicable regulatory requirements. It
also will address safeguards, physical security plans, the quality
assurance program, and performance confirmation. We are closely
managing the schedule for the remaining work. Quality and completeness
are paramount: the application we submit will meet the NRC's regulatory
requirements and be docketable by the NRC.
After the license application is delivered, we must be prepared to
respond to queries and requests that NRC will make during its technical
review. We expect NRC's review to be thorough and rigorous, and our
objective is to provide all required information in a timely and
effective manner to support completion of the NRC's review within the
statutorily established time period.
In parallel with the licensing process, we must focus on design of
the repository and ensure that the site is ready to support
construction as soon as it is authorized by the NRC.
By the end of fiscal year 2005, we will have:
--Completed and submitted a license application for repository
construction authorization to the NRC.
--Updated the LSN certification concurrent with license application
submittal.
--Completed the preliminary design for the waste package, surface
facilities, and subsurface facilities, which requires
continuing performance assessment analysis.
--Continued to refine the safety analysis as needed, in response to
NRC review and in accordance with NRC licensing regulations.
--Completed the detailed work plan, cost estimate, and schedule, and
established a performance measurement baseline for the final
repository design and construction.
--Initiated procurement activities for construction of the surface
and underground facilities.
--Developed designs for offsite facilities and utilities needed to
support the start of construction.
--Addressed safety-related needs at the site.
We are requesting funding for payments-equal-to-taxes to the State
of Nevada and to Nye County, Nevada; Yucca Mountain is located in Nye
County. Our fiscal year 2005 request also includes funding for Affected
Units of Local Government, as well as funding to the University System
of Nevada and to Nye County and Inyo County, California for independent
scientific studies.
National and Nevada Transportation Projects
The amount requested in fiscal year 2005 for National and Nevada
Transportation activities increases from the fiscal year 2004 enacted
level of $63.5 million to $186 million, $163 million of which will be
for the National Transportation Project. The significant increase in
funding will support the initial procurement of transportation casks
and auxiliary equipment and will accelerate operational capability.
The initial procurement of truck and rail casks is needed to
provide the capability for waste acceptance in 2010, given the lead
time required for solicitation, evaluation of proposals, NRC package
certification (for new designs), and fabrication of transportation
casks. We are working with the cask vendor industry to procure an
efficient cask fleet that maximizes the government's ability to support
the full range of contents that need to be shipped with the minimum
number of separate designs. These procurements will proceed towards
cask fabrication in a step-wise manner to maintain flexibility on final
procurements as long as possible. We will also continue to address a
new railcar standard implemented by the American Association of
Railroads for shipments of spent nuclear fuel and high-level waste. In
addition, we have requested funds for equipment procurement and
infrastructure preparation needed for full-scale cask testing by the
NRC to enhance public confidence in the NRC's cask certification
process.
The National Transportation Project will support expanded
institutional interactions with regard to establishing preliminary
transportation routes, operating protocols, and safeguards and security
activities. We will also continue support of State regional groups to
facilitate development of the policy for funding State and tribal
emergency response training and technical assistance as required by
Section 180(c) of the NWPA. We will continue and expand our ongoing
dialogue with State and tribal officials and other stakeholders who
will play an integral role in our transportation planning.
We have requested $23 million for Nevada transportation work,
including completion of conceptual design and the beginning of
preliminary design activities, issuance of the draft Environmental
Impact Statement for the rail alignment, associated public hearings,
and continued development of the land acquisition case file required by
the Bureau of Land Management. Some of this is contingent upon the
Department issuing a Record of Decision under the National
Environmental Policy Act selecting a mode of transportation in Nevada
and a rail alignment, as appropriate. We expect to issue the decision
shortly.
Program Management and Integration
Our fiscal year 2005 request includes $47.5 million for program
management and integration activities, an increase of $17.8 million
over the fiscal year 2004 enacted level. The request reflects the need
to have the strongest possible nuclear Quality Assurance program as we
move into the licensing phase. Quality Assurance is the cornerstone of
assuring the NRC that the Program has implemented activities related to
radiological safety and health and waste isolation that are required by
NRC regulations. We will complete the institutionalization of
improvements that were introduced through the Management Improvement
Initiative to meet the NRC's expectations of its licensees.
The fiscal year 2005 request also contains funding for system
engineering and analysis activities to enable us to better evaluate and
optimize the Program's component elements as they begin to converge
into a single waste management system. In addition to the repository
and transportation readiness, the third key piece that must be put in
place is waste acceptance readiness--i.e., establishing the
``pipeline'' of wastes destined for Yucca Mountain. (In prior years,
waste acceptance was part of the Transportation budget request, but is
now included in Program Management and Integration.) By addressing
waste acceptance issues now, we can ensure that repository facilities
and transportation infrastructure will be compatible with the
commercial spent nuclear fuel and DOE-managed wastes that are planned
for receipt in 2010 and beyond. OCRWM will work closely with the Office
of Environmental Management on DOE spent nuclear fuel and high-level
waste acceptance criteria to ensure that we have an integrated, timely,
and cost-effective approach.
Program Direction
The Program Direction budget request of $87.5 million supports
Federal salaries, expenses associated with building maintenance and
rent, training, and management and technical support services, which
include independent Nuclear Waste Fund audit services and independent
technical and cost analyses. These resources fund a small increase in
support services related to Quality Assurance, and national
transportation technical support activities. The request also reflects
a small increase in Federal staff expenses to manage additional
repository design/licensing activities and National and Nevada
transportation work.
Assumption of DOE Spent Nuclear Fuel Management Functions
OCRWM will be the organization ultimately responsible for disposing
of spent nuclear fuel owned by the Department. Therefore, our fiscal
year 2005 budget reflects OCRWM's assumption of responsibilities for
the National Spent Nuclear Fuel Program, management within the United
States of returned foreign research reactor spent nuclear fuel,
domestic research reactor spent fuel management, and the management of
Chemical Processing Plant-666 from the Office of Environmental
Management. To fund these programs, we expect the Office of
Environmental Management to transfer $22.3 million from its fiscal year
2005 appropriation, funded from the Other Defense Activities account.
Similarly, the Department's plans call for the Office of Environmental
Management to transfer to OCRWM $5.2 million from the Energy Supply
Research and Development account to support spent fuel management work
at the Fort St. Vrain, Colorado, Independent Spent Fuel Storage
Installation, and the Three Mile Island-2 Independent Spent Fuel
Storage Installation at the Idaho Nuclear Technology Engineering
Center, which will be transferred from the Office of Environmental
Management, as well as domestic and university research reactor spent
fuel management functions transferred from the Office of Nuclear
Energy, Science and Technology.
An Office of DOE Spent Fuel Management, reporting to the OCRWM
Director, will be established to integrate and manage DOE spent nuclear
fuel activities without interfering with the ongoing mission we perform
under the Nuclear Waste Policy Act. The transfer of these functions
will enable OCRWM to consolidate DOE spent nuclear fuel expertise and
oversight effectively and efficiently.
ENSURING ADEQUATE RESOURCES TO COMPLETE THE MISSION
The Department of Energy and the Congress have been aware for many
years that funding requirements for the repository program would
increase substantially as we approach construction and transportation
system development. In fiscal year 2005 and beyond, the Program will
need significantly increased funding to pay for the design,
construction, and operation of the repository, and for acquisition and
development of the transportation infrastructure. Much greater
certainty of funding is needed for such a massive capital project to
ensure proper and cost-effective planning and acquisition of capital
assets. Delays simply increase costs, without fulfilling the Federal
responsibility for safe, secure disposal of the waste.
In accordance with the funding approach established in the Nuclear
Waste Policy Act, the Department collects annual fees from nuclear
utilities for the disposal of their spent nuclear fuel. The fees are
reflected in the utility bills that their customers receive. In fiscal
year 2005, an estimated $749 million will be collected. The resources
will be there and we should not delay in making them available for
their intended purpose.
The proposed appropriations language in the President's Budget is
contingent upon enactment of legislation reclassifying the annual
receipts that are deposited into the Nuclear Waste Fund as
discretionary and crediting them as offsetting collections to annual
appropriations. On February 27, 2004, Secretary Abraham sent proposed
legislation to Congress that would accomplish this reclassification. By
allowing the mandatory collections to be credited as discretionary, the
net discretionary appropriation would be $0. The proposed legislation
would be effective until construction is complete for surface
facilities for the fully operating repository. Under this proposal, the
Program would continue to be subject to the annual appropriations
process and Congressional oversight. This proposal would simply allow
the Appropriations Committees to provide funding sufficient for the
Program's needs without interfering with other DOE programs.
COST REDUCTION INITIATIVES
While access to the funds paid by ratepayers for nuclear waste
disposal is nonetheless critical, we believe we can improve the funding
outlook by reducing the total system life cycle cost of the repository
system. With this goal in mind, we are looking at enhancements that can
be achieved through phased development, technical alternatives, and
acceleration of operations post-2010.
Under a phased development approach to repository construction, we
have divided the surface and underground facilities into several phases
so that the repository can be constructed and operated in stages. The
license application will address all facilities necessary to emplace
70,000 metric tons of spent nuclear fuel and high-level radioactive
waste, and will describe the incremental process for building those
surface and underground facilities in modules and panels. In addition
to controlling short-term cost spikes, this strategy will increase
confidence in our ability to begin operations in 2010, allow experience
from initial operations to guide later activities, and retain
flexibility for future technology improvements to be incorporated.
Present-day technology and technical information are adequate to
support a robust license application, the transportation of waste to
the site, and repository operations. However, within the decades-long
time span during which the Yucca Mountain repository would be operated,
advances in technology can lead to life-cycle cost savings, schedule
efficiencies, and improved understanding of the safety and security of
the repository system. To date, we have identified potential cost
savings opportunities totaling several billion dollars over the long
lifetime of repository operations in areas such as welding, advanced
materials, techniques for excavating the underground tunnels, and low-
maintenance ground support. Activities to reduce life-cycle costs and
allow for enhancements in the waste management system are integrated
throughout the Program, and as such will be funded from all budget
areas.
Finally, OCRWM is developing plans for accelerating operations
after 2010 to achieve steady-state waste receipt rates without
diminishing safety or quality. As we gain experience, faster handling
and underground emplacement will become possible, and as additional
phased construction modules are completed, operational capacity will
increase. In addition to lowering costs, accelerated waste receipt
would enhance security by isolating spent nuclear fuel and high-level
waste faster, and could have the added effect of allowing waste storage
sites to be decommissioned sooner than currently planned.
CONCLUDING REMARKS
We are committed to the goal of beginning to receive and transport
spent nuclear fuel and high-level waste to an NRC-licensed repository
in 2010. Toward that end, we intend to submit a high-quality license
application to the NRC in December of this year.
We are requesting a major increase in funding in fiscal year 2005,
but a necessary one both to achieve the Program's goals and to begin to
meet the Federal Government's responsibility for safe, secure disposal
of spent nuclear fuel and high-level radioactive waste. After more than
20 years of scientific study; a site approval process involving the
Department, the State of Nevada, Congress, and the President; and
purposeful efforts toward securing a license, we have reached the point
where investments must be made in transportation, repository, and waste
acceptance readiness, if we are to maintain the objective of commencing
operations in 2010. We urge your support for our budget request, and we
are pleased to be able to work with you on this important national
issue.
Senator Craig. Thank you very much, Dr. Chu, for that
provocative testimony. Let me start the questioning process.
I'll do five and turn to Senator Murray and we'll go back and
forth in that time frame and the chairman will be back in a few
moments, I trust, to join in with us so we all have a variety
of questions to be asked of the three of you.
RISK-BASED END STATES INITIATIVE
Let me turn to you, Jessie, and talk about the document
published by your program for each large cleanup site called
the Risk-Based End States, which is referred to as a vision
document, I believe. The question from that would be what is
the purpose of this document at a site which is a Superfund
site and is controlled by CERCLA, the Superfund law and has
NEPA records of decision of most cleanup actions?
Ms. Roberson. Senator Craig, the Risk-Based End State
initiative really is an effort to do exactly what you stated in
your opening comments. It is an integration of some of the
elements which are independent documents today--land use plans,
our cleanup agreement, other documents that define our
activities. It is an initiative to integrate those.
It is exactly one of the steps that we went through that
allowed us to make informed decisions about soil cleanup levels
at Rocky Flats. We will have to go through the same process at
the other sites. This is a process that mimics the same process
we used there that allowed a clear understanding of the basis
for decision-making regardless to what the actual regulatory
process was. It does not change the regulatory processes, but
it does provide information for those decisions and it also
makes transparent the basis for those decisions.
Many regulatory decisions are made relative to specific
geographic areas without taking into consideration the context
of our cleanup. We think it's a critical step. It does indeed
mimic the same process that got us to cleanup levels at Rocky
Flats, and we expect that it will be useful as a tool in our
cleanup at Idaho.
Senator Craig. Okay. I've seen a draft of Idaho's End State
document dated January 2004, but it has draft written on every
page. What is the path forward for this document?
Ms. Roberson. Well, they will remain drafts for quite a
while until we believe that we have adequately and openly
addressed any issues or concerns with the public and with the
regulators, so they may well be drafts for 6 months. We
actually met with our field managers on Monday and Tuesday and
went through site by site, and I think we still have not done
an adequate job in that arena and we will be taking more time
to do that.
At some point, we would expect to conclude that discussion
and then we will look at those documents. This doesn't overtake
the regulatory process. What it does is provides a visible
basis for us and for the public to understand why we may
propose what we propose in the regulatory process.
BNFL CONTRACT COSTS OVERRUNS
Senator Craig. Okay. Another question of you, earlier this
week, trade publications reported that DOE has agreed to pay
British-owned BNFL for cost overruns related to cleanups in
Tennessee and Idaho. What can you tell us about the status of
these negotiations between the U.S. and British officials and
if there is any truth to the fact that DOE would provide $500
million to compensate BNFL for what appears to be a bad
investment?
Ms. Roberson. What I can say with total confidence is that
the Department has a contract with BNFL and we are living up to
that contract and we expect them to live up to that contract as
well. We continue to look at all of our work at Idaho and any
of our other sites specifically when we're in a procurement
mode. We are looking at that work and how it fits into the
overall procurement. I read the same article. I was intrigued,
but I can't offer you more than that.
LABORATORY DIRECT RESEARCH FUNDING AT IDAHO
Senator Craig. Okay. I'm intrigued, too. My last question
of you and then I'll turn to Senator Murray. Jessie, you know
that I'm very concerned about the potential loss of LDRD
funding, and of course we all know that's Laboratory Direct
Research at the new Idaho national lab, and I've told the
Secretary very directly that I believe LDRD is vital to that
lab and its future missions. Isn't EM funding tapped for LDRD
at both Oak Ridge and Savannah River?
LDRD FUNDING AT OAK RIDGE AND SAVANNAH RIVER
Ms. Roberson. I will tell you honestly, Senator, I do not
believe so, but I would like to validate that for the record if
I might. As a result of your raising this concern, we are
certainly looking very closely at the issue. To my
understanding, EM is not contributing, but I would like to
validate that.
[The information follows:]
LDRD Funding At Oak Ridge and Savannah River
At the Oak Ridge National Laboratory (ORNL), EM funds the
laboratory for work in Technology Deployment and infrastructure
activities like bioassays and utilities. Of the overhead rate paid by
EM, ORNL uses of a portion of the funding to support its LDRD
activities. EM does not directly fund any LDRD activities at ORNL.
Since the Savannah River Site has not established an LDRD program, no
EM funds are used for LDRD at that facility.
Senator Craig. Please do. Thank you. Let me turn to Senator
Murray.
HANFORD 300-AREA CLOSURE
Senator Murray. Thank you, Mr. Chairman. Ms. Roberson, the
Pacific Northwest lab is a very valuable asset to the Federal
Government, the State of Washington and to the tri-cities and
in particular, as Hanford cleanup moves forward. As you know,
there is a lot of concern over the schedule for cleaning up the
300-Area and replacing the laboratory's ongoing research
capabilities that exist in that area.
I addressed those concerns when Dr. Orbach from the Office
of Science testified on March 3, again in writing when
Ambassador Brooks from NNSA testified March 23, and to date, no
strategy has emerged from the Department of Energy.
An accelerated cleanup plan in theory is a good idea, but
it has to be implemented thoughtfully, and that seems to be the
problem. For the first time in the history of the DOE cleanup
program, facilities that have ongoing missions are being
affected. I believe the Department doesn't help itself when it
pursues a track of accelerated cleanup while at the same time
ignoring the responsibility of replacing facilities that house
critical programs for the Department and for other agencies. A
good objective to not have a bad outcome.
Today you reiterated the goal of dealing with high-risk
materials first. No one would classify the 300-Area as high-
risk and frankly, it leaves the community really questioning
DOE's choices. Ms. Roberson, can you tell the committee what is
the current status of the river corridor contract proposal and
efforts to address its current impact on the lab and what are
the options for using anticipated savings from accelerated
cleanup at Hanford to support replacement of facilities for the
laboratory?
Ms. Roberson. Senator Murray, I probably can't address all
of those, but let me please take a shot at as many as I can.
The facilities in question were transferred to the
Environmental Management portfolio in 2001-2002. By definition,
that meant they were excess to mission need. During the next
couple of years as we readied ourselves through the procurement
process to do the river corridor cleanup, there was indeed a
growth in mission, both in NNSA as well as Homeland Security,
and so the Department has taken a step back on the cleanup
procurement to try to make sure there's no impact to those
missions as well as to stay focused on the river corridor
cleanup, because those are all important priorities.
I would say, as I sit here today, we are engaged with our
Deputy Secretary. We've looked at a number of alternatives. We
do not have one that I can share with you, but I think we're
very close. That procurement is awaiting action as a result of
those discussions.
Senator Murray. Okay. Do you have a time line on that?
Ms. Roberson. No, I honestly do not have a time line as I
sit here today. Since it's a multi-program initiative, my time
line is as soon as we have a decision, to move forward, but I
can't tell you when the Department will.
Senator Murray. Is part of that what the options are for
using the savings from the accelerated cleanup?
Ms. Roberson. That's actually one. Unfortunately we don't
achieve the savings until we achieve the cleanup, so I can't
say that savings today are available for that purpose, but I
also again can't tell you all of the options that the
Department is looking at because we are simply one participant
in that decision-making process.
Senator Murray. Can you tell me, are we talking a couple
weeks or a couple months or 6 months before we have an idea?
Ms. Roberson. Actually, as I sit here today, I cannot tell
you. We are inputing into the process. I'd be glad to get back
to you as soon as we leave here today.
Senator Murray. I would really like to know. Obviously the
community is waiting. We all want to know where this is going
and your response, timely response would be really appreciated.
Ms. Roberson. Thank you.
WASTE INCIDENTAL TO REPROCESSING
Senator Murray. Let me move on then to another question.
The Department is still seeking unilateral authority to
reclassify the high-level waste at Hanford, Idaho and Savannah
River. Frankly that appears to a lot of us to just be another
example of the Department not working with its Federal and
State regulators. The Department lost the lawsuit in Federal
court and it's now appealing and the President's budget
proposes to hold $350 million from cleanup of those sites aside
until this issue is resolved to the agency's satisfaction. You
know, frankly, this proposal is being labeled as blackmail to
some people.
The proposal certainly seems similar to the Department's
former accelerated cleanup account proposal that this
subcommittee rejected last year and I hope it will reject again
this year. The fact is that before the Department lost in court
and after, it did have an opportunity to work with the
litigants and States to resolve this issue.
Can you tell me, Ms. Roberson, why the Department rejected
offers of mediation by the NRDC and the States prior to trial
and even more surprisingly rejected the court's request that
all parties agree to mediation after the Department lost?
Ms. Roberson. Actually, I would have to defer to our Chief
Counsel on the specifics of the litigation. What I can say is
that there was conversation among the parties to the lawsuit. I
won't try to describe when or how that happened, because that
process actually would have been managed by our General Counsel
rather than by the Office of Environmental Management, but I
would like to say a few things.
I have heard the term being used that this looks like
blackmail, but Senator Murray, I have to say to you, we haven't
considered changing nary a cleanup agreement at any site. We
are simply trying to implement what we've already agreed to in
those cleanup agreements at every one of those sites.
Senator Murray. But you lost the battle in court.
Ms. Roberson. We are appealing the decision in court, but
even before we lost the lawsuit in the Ninth District, we were
implementing those agreements we have with our regulators in
each State, and we are trying to continue to implement those
agreements. We have not proposed a single change to a cleanup
agreement in any of those States.
Senator Murray. Well, it does appear to a lot of people
that DOE's the only one who thinks legislation is necessary to
resolve this issue. It seems even when our States attempt to
reach common ground, they are just met with steadfast
resistance to maintaining regulatory oversight on this matter,
and it just is disheartening to all of us.
Ms. Roberson. Well, we continue to have a dialogue and I
think a fairly successful dialogue with the States even today.
Senator Murray. They don't feel that way.
Ms. Roberson. Well, that's unfortunate. I appreciate that
insight. That's surprising to me.
Senator Murray. Well, I think everyone I've talked to wants
to resolve this issue, but they feel like the Department is
just resisting any attempts to speak with the States, to work
with them to find common ground. You're simply giving us
legislation to override an issue and thus it is not acceptable.
Ms. Roberson. We are working even today with the States on
a path forward, we absolutely are. It's unfortunate if we have
a State that doesn't believe that that's our goal.
Senator Murray. Let me just give you a personal appeal. Can
you make a concerted effort to sit down with them to really
listen to their concerns and to find common ground on this
issue?
Ms. Roberson. Absolutely.
Senator Murray. Okay. I take you at your word on that and I
will wait to hear from our States that they feel that they are
actually working with you.
Ms. Roberson. Okay.
HANFORD EMPLOYEES EXPOSURE TO TANK FARM VAPORS
Senator Murray. Let me raise another issue and this is
really a critical one for our State. Ms. Roberson, as you know,
there has been a serious issue at Hanford related to continued
exposures of workers to vapors escaping from the tank farms.
It's causing workers to seek medical attention on-site and
often being taken to local hospital emergency rooms.
Related to that vapor issue but not confined to these
medical problems is the Hanford Environmental Health Foundation
which is under a DOE contract to provide medical care at the
site who's now facing allegations of supervisor misconduct,
fraud and medical record tampering. The fear is that this
Hanford Environment Health Foundation has done these things due
to financial considerations and/or perhaps pressure from
contractors to limit the number of work days lost which can
affect the contractor's own financial incentives.
In fact, in last Sunday's Washington Post, it's reported
that the DOE's own inspector general, as you know, found that,
and I want to read from it, ``For 9 out of 10 private
contractors that perform environmental cleanup at old bomb-
making sites from Washington State to South Carolina, the audit
found that the Department of Energy maintained inaccurate and
incomplete accident and injury data.''
Frankly, given the significant coverage on these issues
that we've received in the national and Washington State press,
I was surprised you didn't address them in your own written
statement, but I'm even more surprised that your written
statement makes claims on improved worker safety by citing the
lost work day cases when your own inspector general says the
Department underreports such events. There are many
investigations going on right now at Hanford related to the
tank vapors and HEHF, and I hope we're going to get some
answers from those investigations, but I really fear that the
Environmental Management Program has lost considerable
credibility with workers and their families on these issues.
Cleanup of nuclear waste is a very difficult task. You and
I both know that it involves many known and unknown dangers. We
ask a lot of our workers who are on-site and it seems clear to
me that we need to provide assurance that we know what we are
doing, that we are taking real precautions and that we have
reliable investigations when necessary.
The National Institute of Occupational Safety and Health,
NIOSH, has been on-site, but DOE limited its review authority
to the vapor issue. I don't believe that DOE has requested OSHA
or the NRC to play any role. It seems reasonable to consider if
it would make sense to have OSHA and the NRC regulate health
and safety.
Do you believe that DOE is responsibly on top of these
vapor and medical issues?
Ms. Roberson. Senator Murray, actually, I do believe.
Specifically on the tank farm vapors, I think our field
operations has been fairly aggressive. They've had three
external independent reviews from organizations that have
expertise in the occupational medicine area and they've offered
advice on improvements and we've moved forward with those
improvements, and where we can get good advice to improve,
we're going to continue to do that. That's our commitment.
I won't speak on HEHF since that is an ongoing
investigation. I don't think that I can speak on that, but what
I can say is if there is a determination of any misconduct, the
Department will react swiftly and strongly. There is no doubt
in my mind that we will.
IG REPORT ON SAFETY PERFORMANCE
I'd like to, if I could, respond to--and even though the
system that is in question belongs to the Assistant Secretary
for Environment, Safety and Health, I'd actually like to
respond because the IG draft report was fairly specific to the
Environmental Management program. I mean, I have to say
unequivocally I disagree with some of the information presented
as fact as well as the conclusions reached in that draft
report.
Senator Murray. You disagree with the IG?
Ms. Roberson. Yes, and I have responded. There are two
specific points I'd like to make. There are many others, but I
would like to address two specific points. One assumption was
that this database provided data that was used by Environmental
Management to determine the status of its safety performance.
That is incorrect.
In 2002, OSHA changed the criteria for reporting in the
system and to smooth the path for transitioning to the new
criteria directed that nobody should spend time trying to catch
up with the old system. DOE did the same. DOE took the same
action.
As the Assistant Secretary for Environment, Safety and
Health said in her opening comment, this is a paper-intensive
system and it's prone to quality assurance problems and lag
time. In 2002, we identified this as an issue in our program
and discontinued using it for that purpose. The very law that
the IG cited in its draft report as being the basis for
identifying what data was not being transferred, is the law
that we also look at in our operations to make determinations
as well, too.
So the law that provided the basis of their assumption that
there was underreporting, is the mandated law for the
contractors to keep and in fact, based upon the IG's draft
report, they are obviously keeping it up to date. That is the
law that our facility representatives and our managers look at
in the field and we also look at as well.
The Department has undergone in the last year an initiative
to simplify the translation of that data from the OSHA logs to
its headquarters system, but that hasn't alleviated the
requirement for us to look at their logs in the meantime which
is what we have done.
Senator Murray. I appreciate that. I would like to see your
response back to the IG, but I also think that there's--don't
you think there's something more we can do to make sure the
workers and families feel that their----
Ms. Roberson. Absolutely.
Senator Murray [continuing]. Health and welfare is the
Federal Government's first priority because that certainly
doesn't feel like it today.
Ms. Roberson. Absolutely, and I think you probably know in
the tank farm even as late as last week, we talked with our
site operations and our contractor and we've taken additional
actions there. We are absolutely committed to doing this work
and doing it safely, and we are interested in the expertise and
advice of any that can help us to continue to improve it
because that's what we have to do. So that is our commitment,
and we will continue to be focused on that and look for
improvement wherever.
Senator Murray. Will we be seeing recommendations from your
agency on what we can do perhaps to have OSHA and NRC regulate
health and safety? Will you be making any recommendations like
that?
Ms. Roberson. I'm not personally familiar with whether the
Department will make those recommendations, but I know the
Secretary is looking forward to the results of the reviews and
investigations he's initiated, and I think those will inform
any decisions going forward from there.
Senator Murray. Mr. Chairman, I see you've returned. I have
one more question. I'm happy to wait until you----
Senator Domenici [presiding]. Give it. Let's go.
ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION PROGRAM
Senator Murray. Ms. Cook, your office has authority over
the Energy Employees Occupational Illness Compensation Program
Act. In fact, the Department makes a big deal about its efforts
to implement the program and is currently opposed to efforts to
move implementation from DOE to the Department of Labor which
many of us would believe would be much more effectively
operating the program and serving as the willing partner.
Specifically related to Hanford, it's my understanding that
you intend to end the medical screening program for former
workers at Hanford at the end of this current fiscal year. It
is estimated that there are 2,700 former workers with past
exposures who have actively indicated an interest in an
examination from the site and there are 600 who are awaiting
appointments that won't be available due to budget cuts.
Can you tell me why your budget proposes to end the Hanford
former worker screening and how you justify such an action in
light of such an incredibly big need?
Ms. Cook. Yes. First off, the budget does not define that
we are going to end the former worker program at all. What we
are going to do, though, is make it more effective and
efficient for exactly the reasons you just pointed out. The
former worker program was started several years ago. At the
current time, we have 14 different pilot projects out at
different sites all around the complex. Many sites are waiting
to participate in the former worker screening program.
What we intend to do through this year and into 2005 is to
move forward with a nationwide former worker screening program
that provides more timely and more service without paying
overhead for 14 projects throughout the complex, so at all of
the sites, all of the former workers will have access to a
screening program locally. And if local expertise isn't
available, then we will connect them with someone nearby, but
we do not intend to end any former worker program at any site.
Senator Murray. So the screenings still go on at the
Hanford site?
Ms. Cook. Yes.
Senator Murray. At the site?
Ms. Cook. Yes, absolutely, but it will be part of the
national program and not individual programs at each site, so
it will be managed nationally.
Senator Murray. And the 600 that are awaiting appointments
will get appointments?
Ms. Cook. Absolutely.
Senator Murray. As well as the 2,700?
Ms. Cook. Absolutely.
Senator Murray. Thank you, Mr. Chairman.
Senator Domenici. Thank you very much, Senator. First let
me say, and you've had a pretty good grilling today. I'm glad
you got to offer your views, and let me say I wish we could be
here predicting that your recommendations would be followed,
but it seems to me that in some areas it will be very
difficult.
I have questions in each area, but if I don't get them done
today, I'll get them to you and I would appreciate your
answering them at your earliest convenience.
PLUTONIUM TRACES AT WASTE ISOLATION PILOT PLANT
I noted in a recent press article about the detection of
microscopic traces of plutonium in the sampling at WIPP. I
understand that the quantity is far below the regulatory
concern, but I'm curious whether that detection could be
indicative of more serious issues. My question is, please
describe your understanding of this situation and address my
concern about these samples that could indicate a more serious
problem.
Ms. Roberson. Senator Domenici, we have multiple
independent monitoring sources and for the second quarter in
2003, in some cases it's monthly; in some cases it's quarterly.
This was monthly sampling, I think, for June of 2003. That
sampling or that analysis was conducted using the most capable
and sensitive equipment available to us.
NEW MEXICO CLEANUP AGREEMENT
Senator Domenici. Thank you very much. Ms. Roberson, let me
thank you for your willingness to return to the negotiation
table to work out an acceptable cleanup agreement between DOE
and New Mexico. As a result of these negotiations, $43 million
in additional money can be applied toward meaningful cleanup.
You can be sure that I will continue to watch the matter and I
hope you will too, to ensure that cleanup stays on track.
Does this agreement have enforceable deadlines and
standards to ensure that cleanup is accomplished and we won't
find DOE and the State fighting over the same old issues and
compromising the cleanup?
Ms. Roberson. Senator, it does indeed include enforceable
milestones where Federal or State standards exist, and it would
include those where they do not exist. It would include a
process by which we would go through and work with our
regulators to establish them.
I'm sure this is not the end of the challenges that the
parties will have to work together on, but it certainly
establishes a process through which we can resolve those issues
as we go forward and achieve the cleanup as we've laid out.
WORKER SAFETY SITE PROFILES
Senator Domenici. Let me say, Ms. Cook, last year the DOE
testified that it was in the process of developing site
profiles and to pull together the necessary site data in order
to speed up the case approval process for workers that were
made sick while working for the Department. DOE's testimony
stated that by developing a complete understanding of the
occupational hazards at each of the DOE sites, it will help the
doctors in developing the claims as to exposure hazards a
worker may have been exposed to.
The question to you is, where do we stand on the
development of site profiles and how much is being spent in
2004 and how much will you do in 2005?
Ms. Cook. Yes, to answer that I need to introduce to Bob
Carey that he really wanted to be closely involved, as did the
Undersecretary in this program. And so what they did is bring
in Mr. Carey to bring in the program as a whole with only that
responsibility and directly reporting to the Undersecretary and
to the Secretary, and Bob will tell you about where we are on
the site.
Senator Domenici. What is your name and what do you do?
Mr. Carey. Sir, my name is Bob Carey. I'm a Senior Policy
Advisor in the Office of the Secretary and this elevation of
the Office of Worker Advocacy to a direct report to the Under
Secretary Card happened to coexist, happened at the same time
as my return to active duty, so I was assigned to this program.
I think there may be some misunderstanding as to the
relationship between the site profiles that NIOSH does as part
of the dose reconstruction process and the site profiles that
some people have been advocating for this program.
For the site profiles that NIOSH does for the Part D
Program for the dose reconstructions, it's regarding radiation,
a relatively well understood, quantifiable and discrete program
where the causal relationships are pretty well understood. For
the other toxic substances that Part D also covers, the
Department of Energy Program, those causal relationships are
not nearly as well understood. A lot of these substances hadn't
even become known to be toxic except in the last couple
decades. Prior to that we didn't even have a lot of records on
these issues.
Because of that, the cost benefit analysis that we've done
to date has not indicated that such large scale discrete site
profiles would be beneficial. We believe they cost several
million dollars and they take a year or 2 to complete and that
they don't necessarily provide any additional data that would
be that useful to the Physicians' Panels.
And the fact of the matter is we believe we already have
sufficient information for these Physician Panels. The statute
requires that we provide all available information. It does not
state that we are required to provide additional analysis like
the statute requires NIOSH to do for dose reconstructions. With
that available information we currently provide, we believe we
provide more information than other compensation programs do,
and we provide a large volume of information already to these
physicians.
The fact of the matter also is we have to look at this cost
benefit analysis in terms of what we provide to the applicant
with our positive determination. The Department of Labor's Part
B Program has a 50 percent or greater standard of causation for
the radiation-induced cancer, whereas ours is not as likely to
be a significant factor in the causation, aggravation or
contribution to an illness.
So we've had positive determinations where we've had a 2\1/
2\ percent probability of causation. Given all those issues and
the fact that we don't make a disability determination and we
don't make a compensation recommendation in our physician panel
process to the State worker's compensation boards, we do not
believe that these large-scale site profiles that some people
have been talking about would be beneficial in the net.
Senator Domenici. Well, let me tell you, all that statement
notwithstanding, we are in a mess because the claimants clearly
don't believe us anymore, and things are going too slow and
we're not getting anybody compensated. And I suggest while the
bill is a little drawn, it doesn't provide that much per
individual that we shouldn't get on with it. I think it's got a
cap of $15,000, doesn't it?
Mr. Carey. No, sir, our program does not have any cap. In
fact, under the Part D Program, the one that the Department of
Energy runs, we provide no direct Federal benefit. We provide a
positive physician panel determination which we can then use to
issue to a contractor----
Senator Domenici. Who pays the money?
Mr. Carey. The contractor or the insurance company that the
contractor may have hired is the one that ultimately pays the
money. If we have a current contract with that contractor, we
can then reimburse them under those contracts, but the States
are the ones that direct the money, the payment of the money,
sir, under the Part D Program.
Senator Domenici. Well, straighten me out. What are they
complaining about?
Mr. Carey. Sir, we initially vastly underestimated the
scope of this program and because of that underestimation, we
underestimated how long it was going to take to set up the
program and how much we were going to have to invest in order
to establish this program.
We now believe that we have established this program, and
since we received that $9.7 million reprogramming for fiscal
year 2003, we received that in October of 2003, we've tripled
our case processing up to the physician panels; we've increased
our physician panel determinations approximately six-fold;
we've also been able to put together a strategic plan based
upon a top to bottom review to be able to eliminate the entire
backlog of current and future backlog applications by the end
of calendar year 2006.
If we thought we could hire enough physicians in order to
be able to panel these panels faster and in greater quantities
than we currently believe, we'd want to do that faster.
Senator Domenici. Who's in charge of the program now, the
Secretary?
Mr. Carey. Under Secretary Card is who I directly report
to, sir.
Senator Domenici. Well, I'll tell you, this isn't in the
scheme of things, may not be for the Department a very big
program or very significant.
Mr. Carey. It's my life, sir.
Senator Domenici. What?
Mr. Carey. It's my life.
Senator Domenici. Well, I'm glad it's somebody important's
life because there's an awful lot of folks that don't think we
know what we're doing.
Mr. Carey. Sir, my father--I'm sorry, sir, go ahead.
Senator Domenici. And we didn't know what we were doing. It
was wrong for a long time. Now you tell me it's going to get
right and I don't question you except you've got to understand,
we know about the doctor issue, but you've got to understand
that you've got to get going.
Mr. Carey. Yes, sir.
YUCCA MOUNTAIN FISCAL YEAR 2005 BUDGET REQUEST
Senator Domenici. Okay, now let me talk a little with Dr.
Chu. Let me first thank you and congratulate you. I wish we
could tell you that we could move forward with dispatch, but
you understand the problem and the President's budget requests
$880 million for Yucca. A significant portion of this funding
is to be paid from fees assessed which you're aware of. The
fund will collect $749 million this year, the budget process
that the annual receipts be reclassified as discretionary funds
and then appropriated.
As a former budget committee chairman, I know that you
can't wave a magic wand to reclassify these fees. It requires
legislation and some degree of cooperation.
I'm not optimistic that we are going to accomplish that
this year. However, if we fail to get the agreement and
reclassify the fees, the Senate Budget Resolution assumes a
level that you are not satisfied with of $577 million. Now,
that's not the end because we've got to go to conference with
the House. You're aware of that. If Congress only provides $577
million, what activities will the Department be forced to defer
and will this significantly delay the opening?
Dr. Chu. Senator, thank you very much for your support all
these years. We have looked at this budget situation very
carefully, and the reason we ask for $880 million is we need
the funding to open a repository in 2010. If we get a level of
funding of $577 million in 2005, we will be able to deliver the
application because that's our highest priority. That's our
first milestone. But we will not be able to achieve our goal of
2010 without getting the full funding.
Senator Domenici. But when you get the first step that you
just described, the licensing?
Dr. Chu. Yes.
Senator Domenici. You think you can do that?
Dr. Chu. Yes. We will be able to do a license application
because we are in the process of completing that in 2005. Since
our schedule is December 2004, it's really the first quarter of
2005 we intend to deliver the license application.
Senator Domenici. I hope you can. Isn't that being
contested also?
Dr. Chu. That remains to be seen.
Senator Domenici. That licensing is being contested also
just like everything else?
Dr. Chu. Not yet.
TRANSPORTATION MODE AND ROUTES FOR YUCCA MOUNTAIN
Senator Domenici. Okay. It's my understanding that the
Department has not made a final decision as to whether it will
use rail or truck as the transportation mode of waste to Yucca
or decided on a specific route. When will the Department make
this decision and begin the environmental impact study?
Dr. Chu. In our final environmental impact statement, we
have indicated that mostly rail is our preferred transportation
mode, but we have yet to issue a formal record of decision on
that. In my testimony, I say we expect to do that very shortly.
And as to specific routing, this is part of a whole
planning process with the stakeholders and the State and the
local governments. And we are just starting that process right
now and we do not anticipate to identify a suite of routes
until probably fiscal year 2006. That's the preliminary plan,
but we'll deal cooperatively with all the stakeholders.
Senator Domenici. Well, I'm amazed, I mean if you think
you're over the hurdles, you know, transportation is a big
issue, too, among people. Routes will be a big issue. I want to
suggest to you that I have found one of the most intriguing
responses to be a detailed history of the U.S. Navy and its
ships and where they are on a given day and how many nuclear
reactors are floating around the oceans and seas of the world.
There are lots of them. You know, some of them have two on
board. They are now permitted to land, to dock at every dock in
the world except New Zealand, and that's an old thing.
Now, when we worry about safety, isn't it amazing that
there's probably about 150 nuclear reactors traveling the
waters of the ocean and from time to time docked in docks that
are full of ships that are adjacent to them, to development,
and nobody complains. I just tell you that it's pretty
interesting.
When we sit around and worry so much, the peoples of the
world let these dock with, you know, a battleship has two of
them.
Dr. Chu. Senator, I totally agree with you. You know,
worldwide, there's excellent safety records in transportation
of nuclear materials.
WASTE INCIDENTAL TO REPROCESSING
Senator Domenici. Let me talk a minute to you, Ms.
Roberson. The budget provides $350 million that can be used to
address the cleanup of waste incidental to reprocessing, WIR,
located in Washington, Idaho and South Carolina. I understand
that the Department is allowed to reprocess some of the WIR
waste in Washington and Idaho. It would generate transuranic
waste streams that DOE intends to send to WIPP. Thus far I'm
correct, am I not?
Ms. Roberson. The one adjustment I would make in
Washington, it's not even waste from reprocessing. The source,
the actual source is transuranic waste.
Senator Domenici. Well, to date, the Department has
discussed a strategy with Washington, Idaho and South Carolina,
but the State of New Mexico was yet to be included in these
discussions. Will you commit here to including New Mexico in
these negotiations and work with the State in developing a
solution?
Ms. Roberson. Absolutely, Mr. Domenici, and we actually did
start that a couple weeks ago with the workshop hosted by EEG
and I think it was a very successful workshop in providing
information to all the parties that allowed a platform for
future conversations, so you do have my commitment.
TRANSURANIC WASTE
Senator Domenici. Okay, what is the basis for determining
what transuranic waste is and what is the process by which you
believe you can remove the fission products? That would mean
we're going to meet the criteria for permanent disposal at
WIPP.
Ms. Roberson. The basis for determining--TRU waste is
actually defined by the permit for disposal at WIPP and we must
satisfy the permit requirement before any such material can go
there.
Senator Domenici. Okay. We have about 20 other questions
and I have about 20 other people lined up, so I'm just going to
give you those.
Ms. Roberson. Thank you, sir.
ADDITIONAL COMMITTEE QUESTIONS
Senator Domenici. I'd like to thank the witnesses. I'm
sorry that we talked more than you, but that's the Senate. I
think some chairmen do a better job than I and just say that
only two people will talk. The rest of you can wait for your
questions, but that's not so easy.
I'd like to remind members that the subcommittee will keep
the record open for 2 weeks for additional questions. And to
our witnesses, you have 2 weeks upon receipt of the questions
to provide answers. If there are too many and are too bulky,
just tell us you need another week on some of them. Just don't
let us think you're not cooperating.
[The following questions were not asked at the hearing, but
were submitted to the Department for response subsequent to the
hearing:]
Questions Submitted to the Department of Energy
Questions Submitted by Senator Robert F. Bennett
REMOVAL OF MOAB URANIUM MILL TAILINGS PILE
Question. The State of Utah has raised significant concerns
regarding the instability of the Moab Atlas tailings pile over time and
the need to remove the tailings from their current location on the
banks of the Colorado River. Where is the Department with regard to its
determination about whether to remove the tailings pile from the banks
of the Colorado River?
Answer. The Department is now preparing the draft environmental
impact statement (EIS) for remediation of the tailings in cooperation
with other Federal agencies, as well as State, Tribal, and local
governments. The Department plans to issue the draft EIS for public
comment in the fall and to identify a range of remedial alternatives
including no action, stabilization in place, and disposal of the
tailings at one of three potential off-site locations. The National
Environmental Policy Act regulations require that the no action
alternative be evaluated as well as all reasonable alternatives. We
will allow adequate time for public review of the document; a minimum
of 45 days is required by regulation, and more time can be granted if
needed. The Department has not selected a preferred alternative at this
time and would like to obtain public input on the draft as an aid in
making our selection. We will identify a preferred alternative in the
final EIS and will brief interested members of Congress at the earliest
opportunity when we have made a selection. The Department's current
schedule anticipates issuance of a Record of Decision for the selected
remedial action in 2005.
SALT CAVERN DISPOSAL REMEDIATION ALTERNATIVE
Question. I understand that there is some interest in a new
remediation alternative called salt cavern disposal because of the hope
that it may be both protective of the environment and economically
competitive with the other remediation alternatives already listed in
the Draft EIS. Has DOE investigated this option and if so, what
conclusions have been reached with regard to this alternative?
Answer. The Department is considering an alternative to dispose of
the uranium mill tailings in mined salt caverns. Conceptually, such
disposal caverns would be created by solutions mining in the salt beds
of the Paradox Formation beneath the Moab site or other possible
locations, such as the commercial potash mine site approximately 6
miles downstream from Moab. This alternative would involve withdrawal
of significant quantities of Colorado River water (on the order of
2,000 gallons per minute for 20 years). The water would be used as part
of the solution mining process and would become saturated with salt,
generating brine that would have to be disposed of by deep injection
well, or solar evaporation pond, or other alternative methods for
disposal of brine. Disposal for uranium mill tailings in mined salt
caverns would be a unique, first of a kind methodology and is an
unproven approach to uranium mill tailings disposal that could take at
least 20 years to complete and for which there are several areas of
technical, geological, and operational vulnerabilities and uncertainty.
The National Academy of Sciences recommended that DOE ``take advantage
of the experience gained from previous DOE projects and the UMTRA
project.'' The Department has not yet reached a final conclusion
regarding this alternative.
Resolving these uncertainties sufficiently so the Department could
be sure that this alternative is technically feasible would require
significant investment in additional studies, including injection well
testing, subsurface characterization, geological and salt cavern
performance modeling, and an overall system performance assessment.
Such studies would require a multi-million dollar investment and
several years to complete, with no guarantee that the investment would
demonstrate that this alternative is viable. The Department has not yet
reached a final conclusion regarding this alternative.
______
Questions Submitted to the Office of Environmental Management
Questions Submitted by Senator Pete V. Domenici
WIPP DETECTION OF PLUTONIUM
Question. I noted in a recent press article about the detection of
microscopic traces of plutonium in the air sampling system at WIPP. I
understand the quantity of plutonium is far below regulatory concern,
but I am curious whether such detection of plutonium could be
indicative of a more serious issue. Please describe your understanding
of the situation and address my concern that these samples could
indicate a more serious issue in the future.
Answer. The detection of a few microscopic particles of plutonium
during the spring of 2003 is not indicative of a more serious issue;
rather, it indicates the sensitivity of one of the methods DOE uses to
ensure serious issues do not arise. With DOE's support, the Carlsbad
Environmental Monitoring and Research Center (CEMRC), the Environmental
Evaluation Group (EEG), and Washington TRU Solutions (WTS) have
developed sensitive radiochemistry capabilities that allow them to
detect traces of plutonium in composite samples of air filters
collected over weeks and months. The amounts detected were barely above
the detection limits of these laboratories' analytical capabilities,
and several of the samples analyzed from this period did not detect any
traces of plutonium. The laboratories have analyzed samples taken
subsequently during the summer of 2003 and have not detected any
plutonium in them; they are continuing to analyze similar samples taken
since the ones in which plutonium was detected. In light of the
laboratories' extremely sensitive analytical methods, the environmental
conditions around the site, and the Waste Isolation Pilot Plant's
(WIPP) 5 years of operations, DOE anticipated that these types of
particles would eventually be detected.
Although these particles may be the result of WIPP's operation,
their source is uncertain at this time. CEMRC, EEG and WTS are working
to identify the source. The continuous air monitoring devices used to
protect workers, the public and the environment did not detect anything
of significance during this period. In addition, CEMRC's analysis of
ambient air samples taken within 100 meters of the exhaust shaft and
elsewhere did not detect any levels of plutonium during this period
above those resulting from fallout from past nuclear weapons testing.
LOS ALAMOS CLEANUP
Question. Ms. Roberson, thank you for your willingness to return to
the negotiating table to workout an acceptable cleanup agreement
between DOE and the New Mexico Environment Department for Los Alamos
National Lab. As a result of these negotiations, $43 million in
additional funding can be applied toward meaningful cleanup this year.
You can be sure I will continue to watch this matter very closely to
ensure that cleanup stays on track. Does this agreement have
enforceable deadlines and standards to ensure that the cleanup is
accomplished and we won't find DOE and the State of New Mexico fighting
over the same old issues and compromising cleanup?
Answer. The consent order as agreed upon by the Department and the
State of New Mexico does indeed have specified enforceable deadlines
and cleanup standards. Where standards do not exist, the consent order
sets forth a process to establish appropriate risk-based standards.
OFFICE OF FUTURE LIABILITY
Question. The budget provides $8 million to establish the new
Office of Future Liability that will take over environmental cleanup
not already assigned to the Office of Environmental Management. The
budget indicates that this will include 2,000 contaminated sites that
must begin cleanup by 2025. I believe that in DOE's zeal to close the
EM program by 2035, it is ignoring significant waste streams that must
be addressed. I am skeptical that creating an entirely new bureaucracy
to address the future cleanup is the most cost effective means of
achieving cleanup. How much does the Department expect the Office of
Future Liability will spend for cleanup over the next 20 years and how
many people will the new office need to manage this massive cleanup
effort?
Answer. The Office of Future Liabilities (FL) was established as a
planning office to develop comprehensive estimates of the Department's
future environmental liabilities, including decommissioning and
decontamination of excess facilities and disposition of excess nuclear
materials in order to assist DOE in developing the best organizational
structure for managing that cleanup. FL will work with the line DOE
science, energy, and defense organizations to develop the scope, cost
and schedule for all the requirements and identify organizational
options for managing these requirements. For the near-term budget
window, four full-time equivalents are requested to support the
planning responsibilities of the office. DOE has not decided what line
office will be charged with managing future liability.
Question. Has the Department determined whether or not creating
this new office and bureaucracy will lower the cost of cleanup, and is
there any data to validate this decision; and will there be a
transition plan for experiences staff from one office to another?
Answer. The Department's Top-to-Bottom Review of the Environmental
Management program recommended the accelerated cleanup of the legacy of
the Cold War, the mission the Office of Environmental Management was
designed to carry out. Defined, finite work scope has been key to
focusing the active cleanup mission on accelerated completion with the
benefits of reducing risk and life-cycle cost while accelerating
schedule and cleanup. However, long-term waste treatment and disposal
will continue beyond the completion of the current EM baseline (scope)
program. So that we do not diminish the momentum we have gained with
accelerated EM cleanup, the Department has proposed the new planning
office to look at options for managing the long-term liabilities and in
so allowing the accelerated pace in achieving near-term cleanup results
to continue unabated. We believe these are prudent steps to effectively
manage our near-term cleanup responsibilities while establishing a
visible process to address future liabilities.
We do not foresee a need for a transition plan at this planning
stage as longer-term liabilities may involve different issues and
different skill mixes compared to the near-term cleanup activities.
MANAGING FUTURE WASTE COSTS
Question. EM is negotiating with other DOE offices to require that
they take over all environmental responsibilities for waste they
generate in the future. I have many concerns with this approach,
because EM is the only office qualified to deal with the waste cleanup.
On the other hand, I recognize that every Office in the Department must
be more sensitive to the costs of managing waste streams they create.
It seems to me there could be better ways to force each office to make
a serious effort to reduce these costs. One option might be to require
that an office which generates wastes set aside sufficient funds that
would be used by EM to manage the cleanup. Has the department
considered this option and would it make program managers more
considerate of waste management costs?
Answer. The Department has considered the option of a waste
generator charge-back program. Our assessment has indicated that
implementation of a charge-back program is difficult to manage and has
the potential to increase costs because of the additional accounting
burden. In addition, the Department has the risk of augmenting an
appropriation if the charge-back program does not collect the exact
funding necessary for operations. Should the generating program exceed
the level of appropriated funds, EM will be required to supplement the
remaining cost of newly generated waste operations. Compounding this
approach, a charge-back system would not enable EM to focus its efforts
strictly on its core mission of accelerated risk reduction and site
closure for legacy activities.
WASTE DEPOSITS AT WIPP
Question. The budget provides $350 million that can be used to
address the cleanup of Waste Incidental to Reprocessing (WIR) located
in Washington, Idaho, and South Carolina. I understand that if the
Department is allowed to reprocess some of the WIR waste in Washington
and Idaho it would generate transuranic waste streams that DOE intends
to send to WIPP. To date, the Department has discussed this strategy
with Washington, Idaho, and South Carolina; but the State of New Mexico
has yet to be included in these discussions. Will you commit to
including New Mexico in the negotiations and work with the State on
developing a solution?
Answer. The State of New Mexico was represented in some of the
discussions the Department has had with affected States on waste
incidental to reprocessing. Pursuant to my commitment to you, since the
hearing, we have stepped up our efforts to discuss this matter with the
State, including productive conversation between Governor Richardson
and the Deputy Secretary. We are committed to working with the State
and the State's elected representatives to resolve issues relating to
transuranic waste.
Question. What is the basis for determining what transuranic waste
is and what is the process by which you believe you can remove the
fission products that would meet the criteria for permanent disposal at
WIPP?
Answer. Transuranic (TRU) waste is defined by the Waste Isolation
Pilot Plant (WIPP) Land Withdrawal Act as ``waste containing more than
100 nanocuries of alpha-emitting transuranic isotopes per gram of waste
with half-lives greater than 20 years, except for (A) high-level
radioactive waste, (B) waste that the Secretary of Energy has
determined, with concurrence of the Administrator [of the Environmental
Protection Agency, EPA], does not need the degree of isolation required
by the disposal regulations, or (C) waste that the Nuclear Regulatory
Commission has approved for disposal on a case-by-case basis in
accordance with part 61 of title 10 Code of Federal Regulations
(CFR).'' ``High-level radioactive waste'' is defined in the Nuclear
Waste Policy Act (NWPA) as ``(a) the highly radioactive material
resulting from the reprocessing of spent nuclear fuel, including liquid
waste produced directly in reprocess and any solid material derived
from such liquid waste that contains fission products in sufficient
concentrations; and (b) other highly radioactive material that the
[Nuclear Regulatory] Commission, consistent with existing law,
determines by rule requires permanent isolation.''
DOE believes that certain tank waste in Idaho and Washington is not
high-level waste but rather is TRU waste. This is largely for two
reasons.
First, DOE believes that this waste is not ``highly radioactive
material resulting from the reprocessing of spent nuclear fuel.''
Rather, in the case of Idaho, the waste, known as ``sodium-bearing
waste,'' is waste primarily from decontamination activities and
wastewater resulting from operations at the Idaho Nuclear Technology
and Engineering Center (INTEC). This waste also contains trace amounts
of radioactivity from first-cycle reprocessing wastes resulting from
heels from these wastes left in the tanks after the first-cycle
reprocessing wastes were removed and calcined in anticipation of their
disposal in the spent fuel repository, along with some second- and
third-cycle reprocessing wastes that remained in the tanks after most
of that waste was also calcined in anticipation of disposal in the
spent fuel repository. These wastes, approximately 1 million gallons,
are currently being stored in the same tanks that were used to store
waste from reprocessing. The total curies that have been removed and
calcined represent on the order of 98 percent of the total INTEC curie
inventory generated through spent fuel reprocessing. In the case of
Washington, there is waste in approximately 20 tanks at Hanford that
DOE believes resulted from decladding of fuel prior to reprocessing and
from the cleanup of plutonium that occurred after the reprocessing of
spent fuel. In DOE's view, this waste does not result ``from
reprocessing,'' whose purpose is to recover uranium and plutonium, but
rather from activities necessary to prepare the fuel for reprocessing
and to remove impurities from the recovered metals to meet weapons
production purity standards. To put the point a little differently,
this waste is very different from waste from the ``first solvent
extraction or similar process by means of which uranium and plutonium
are recovered from irradiated reactor fuel.'' That was the definition
of ``high level waste'' used by the Consultation and Cooperation
Agreement between the State of New Mexico and DOE which contained the
original prohibition on disposal of high-level waste at WIPP and that
we believe was at the heart of what Congress had in mind when it
defined ``high-level waste'' in the NWPA. The WIPP Land Withdrawal Act
specified that this Agreement was unaffected by the WIPP Land
Withdrawal Act. The radionuclide concentrations in these wastes are
substantially lower than those contained in wastes from the first cycle
of spent nuclear fuel reprocessing.
Second, DOE believes that this waste meets the definition of
``transuranic waste'' and has other radiological characteristics that
make it similar to other defense TRU waste in the complex that is being
disposed of at WIPP, i.e., alpha-emitting radionuclide concentrations
that are greater than 100 nanocuries per gram.
With regard to the removal of fission products, with respect to the
Idaho waste, as explained above, the current tank inventory in Idaho
represents about 2 percent of the radioactivity from the initial spent
fuel waste inventory, because 98 percent of that radioactivity has been
calcined. This has also resulted in removal of on the order of 98
percent of the cesium, strontium, technetium and actinides from
reprocessing that the waste originally contained. As for the Washington
waste, it never contained fission products from reprocessing operations
to begin with (except for possible limited cross-contamination in three
tanks due to the tanks' having been used for multiple purposes during
their operating life times), and it is expected to contain less than 1
percent of the radioactivity from the Washington tanks.
WIPP does not have specific radionuclide or fission product
limitations for acceptable waste. In fact, it is specifically
statutorily authorized to receive remote-handled transuranic waste (RH
TRU), which generally contains significant amounts of fission products.
Instead, the relevant limitations in WIPP's waste acceptance criteria
are fourfold. First, there is a statutory cap on the volume of RH TRU
that WIPP may accept. While much of the treated TRU from Idaho and
Washington is expected to be contact-handled, some is expected to be
remote-handled, and disposal of that waste at WIPP will have to comply
with the statutory volume limits. Second, WIPP has received approval
from EPA to accept remote-handled waste, but it is still awaiting
action from New Mexico on DOE's request for modification of its
Resource Conservation and Recovery Act (RCRA) permit, so again, no
remote-handled TRU from either site would be able to go to WIPP until
that approval has been received. Third, WIPP has a performance
assessment demonstrating that disposal of a total assumed volume of
contact-handled and remote-handled transuranic waste with certain
characteristics satisfies EPA's standards for disposal of transuranic
waste. The tank waste from Idaho and Washington under consideration for
WIPP disposal has characteristics consistent with the assumptions in
that performance assessment and therefore can safely be disposed of
there. Finally, DOE has submitted to the State of New Mexico a request
for a modification of its RCRA permit that would require it to submit a
further Class III RCRA permit modification for tank waste it is seeking
to dispose of at WIPP. If that modification is approved, DOE would have
to comply with its conditions as well.
$500 MILLION SETTLEMENT FOR BNFL
Question. Earlier this week, trade publications reported that DOE
had agreed to pay British-owned BNFL for cost overruns related to
cleanups in Tennessee and Idaho. What can you tell me about the status
of these negotiations between the U.S. and British officials and if
there is any truth to the fact that DOE would provide $500 million to
compensate BNFL for what appears to be a bad investment?
Answer. DOE is working to resolve several outstanding contract
issues under the BNFL contracts in Tennessee and Idaho. There is no
final agreement at this time, but any resolution we reach with BNFL
will only be reached if we believe it is in the interest of the
taxpayers consistent with the programmatic interests of the Department
and will allow us to meet our cleanup commitments.
WASTE INCIDENTAL TO REPROCESSING (WIR)
Question. This budget provides $350 million to be spent to fund
cleanup of nuclear material designated as Waste Incidental to
Reprocessing (WIR). The budget states that enormous savings can be
achieved if DOE is able to reclassify nuclear waste streams and follow
through with cleanup remedies that have been negotiated with each
State. However, a recent Idaho court decision is blocking final
disposition of the material. Until this court ruling is resolved or
legislation is passed, a final remedy cannot be prescribed. Can you
please provide what you believe to be the total cost estimates to clean
up the material in Washington, Idaho and South Carolina if you must
treat all of this material as high level waste, verses the potential
cost savings that would be realized if some of this material can be
treated as waste incidental to reprocessing?
Answer. The Department's baseline life-cycle cost for implementing
its accelerated cleanup plans at Washington, Idaho and South Carolina
is $52 billion, if some of the waste can be treated as waste incidental
to reprocessing. If the Department must treat all of the material as
high-level waste, the life-cycle cost increases to more than $138
billion. Under this worst-case scenario:
--Retrieval of all tank reprocessing wastes and treatment for
disposal in a geologic repository could require as much as $69
billion over the current Environmental Management program life-
cycle cost baseline.
--As much as an additional $17 billion--and possibly more--would be
required to exhume and dispose of tanks and associated
components in a geologic repository.
--It is difficult to estimate the additional costs the Department
would incur in terms of Federal repository fees. Under existing
cleanup baselines, the Department expects to produce
approximately 20,000 canisters of high-level waste for disposal
in a geologic repository; the fee associated with these
canisters is estimated to be $10 billion. Under a scenario in
which all tank reprocessing wastes currently anticipated to be
removed and disposed of as low-level waste are instead prepared
for disposal in a repository, the new baseline could approach
200,000 canisters. Thus, the fees could be significantly
greater. This canister estimate does not include exhuming the
tanks themselves nor associated piping, equipment, and
concrete. At this time, the Department does not have accurate
estimates of the volumes for these additional materials that
also might need to be placed in the repository. (Calculating
the additional fee is complicated by the Department's statutory
and contractual obligation to dispose of commercial spent fuel
and by the statutory and physical constraints on the capacity
of a repository at Yucca Mountain, Nevada. While the statutory
70,000 metric ton limit on waste at Yucca Mountain is already
exceeded by the current inventory of waste, Yucca Mountain's
physical capacity could well also be exceeded if the volumes of
waste the worst-case scenario contemplates are added to current
estimates.)
Question. Can you please explain why you don't believe this
material in question at each site qualifies as the high-level waste and
the processes that will ensure that high-level radioactive waste
remains separate?
Answer. The U.S. Department of Energy (DOE), the U.S. Nuclear
Regulatory Commission (NRC), and the Atomic Energy Commission (AEC)
(the predecessor of both DOE and the NRC) have long been of the view
that while most of the radioactive waste from reprocessing is ``high-
level waste,'' some of the material is not high-level waste, and is
instead ``waste incidental to reprocessing.'' Reprocessing waste is
currently stored in tanks at DOE sites in Idaho, Savannah River, and
Hanford.
DOE plans to solidify, treat and dispose as high-level waste the
portion of tank waste that contains by far the vast bulk of the
radioactivity. At Idaho, DOE already has finished calcining these
wastes; at Savannah River, DOE currently is vitrifying them through the
Defense Waste Processing Facility; and at Hanford, DOE will vitrify
them in the new Waste Treatment Plant currently under construction.
But DOE, the NRC, and the AEC have also long been of the view that
some of the tank waste can instead be properly classified as ``waste
incidental to reprocessing'' that may be managed and disposed of as
low-level waste. These wastes do not pose the same risk to human health
and the environment and can safely and lawfully be disposed of as low-
level waste because they do not need the degree of isolation that the
more highly radioactive wastes require.
To determine which tank waste may be managed in this fashion, DOE
has used criteria developed originally through an iterative process of
consultation with the NRC regarding particular tanks waste, and
subsequently codified in the ``Waste Incidental to Reprocessing''
portions of Order 435.1, DOE's Order governing classification of
nuclear waste. These criteria specify that to classify waste as low-
level WIR, DOE must remove as much radioactivity as possible, and that
what remains must be solidified and put in a form that will meet
performance objectives for disposal of low-level waste as set out in 10
C.F.R. part 61--primarily, that it will not result in an annual dose to
a member of the public of more than 25 millirems and that inadvertent
intruders will also be protected.
DOE believes that this approach is protective of public health and
safety and consistent with the Nuclear Waste Policy Act's (NWPA)
definition of ``high level waste.'' The NWPA defines ``high-level
radioactive waste'' as: (A) the highly radioactive material resulting
from the reprocessing of spent nuclear fuel, including liquid waste
produced directly in reprocessing and any solid material derived from
such liquid waste that contains fission products in sufficient
concentrations; and (B) other highly radioactive material that the
Commission, consistent with existing law, determines by rule requires
permanent isolation.'' [emphasis added] DOE believes that the criteria
described above properly distinguish between ``highly radioactive''
material from reprocessing that ``requires permanent isolation'' in the
spent nuclear fuel repository and ``non-highly radioactive'' material
from reprocessing that does not.
We recognize that some doubt has been cast on the correctness of
this view by the Idaho District Court decision in NRDC v. Abraham. The
Department has appealed that decision and has also asked Congress to
enact legislation to clarify this matter.
DEFINING HIGH-LEVEL WASTE
Question. Part of the debate over WIR involves the rather unclear
definition of high-level waste. We now identify waste depending on how
it was generated, not on how radioactive it is--that doesn't make much
sense. Do you agree that a serious National Academy of Sciences study
to improve the definition of high-level waste might help clarify this
issue and avoid the kind of debates you are now having with Waste
Incidental to Reprocessing?
Answer. The Department agrees that identifying waste depending on
how it was generated rather than on its radioactivity does not make
much sense. However, while a serious National Academy of Sciences study
to improve the definition of high-level waste might help clarify this
issue, such a study would not provide DOE the legal certainty it needs
to make the kinds of decisions it must make to clean up the tank farms.
DOE's accelerated cleanup plans for the tank farms at Idaho,
Hanford, and Savannah River all depend, in part, on DOE's being able to
classify certain waste from reprocessing as low-level or transuranic
waste. DOE's problem is that the District Court has ruled that the
underpinnings of these cleanup plans are contrary to Federal law, and
that if it proceeds with key aspects of the current cleanup plans, the
District Court has signaled that it will issue an injunction telling
DOE to stop.
Therefore, any new or different criteria DOE might promulgate, even
if based on the advice of the National Academy of Sciences, would also
likely be the subject of legal challenge. Unless Congress acts quickly
to clarify the Department's authority to proceed, our efforts to clean
up the tank farms at these sites, which are at the core of our
accelerated cleanup plans there, will be largely paralyzed.
Question. It is unclear from the budget how much material there is
at each of the sites and the amounts of material DOE believes should be
designated as high level, transuranic and low-level waste at each of
the sites.
Answer. DOE currently has roughly 91 million gallons of waste from
reprocessing stored in tanks in Idaho, Savannah River, and Hanford.
Stabilizing and disposing of this material and closing the tanks is the
Department's single largest ongoing environmental risk-reduction
project.
DOE's plans at all three sites call for removing on the order of 99
percent or more of the radioactivity from the tanks. At all three
sites, DOE's plans then call for solidifying, treating and disposing of
the vast bulk of the removed radioactivity from these stored wastes in
a deep geologic repository for spent nuclear fuel and high-level waste.
At two of the sites (Savannah River and Hanford) DOE's plans call for
solidifying, treating and disposing of some of the removed waste,
consisting of lower-activity salts that in most instances will have
been further treated to remove additional actinides and cesium, and
which will contain only a small fraction of the radioactivity from the
tanks, as low-level waste on-site. Likewise, at two of the sites (Idaho
and Hanford), DOE's plans call for solidifying, treating and disposing
of some of the removed waste, again containing a small fraction of the
tank radioactivity, as transuranic waste at the Waste Isolation Pilot
Plant (WIPP). Finally, at all three sites DOE's plans call for grouting
in place in the tanks a very small amount of residual waste remaining
in the tanks.
Waste Destined for Spent Fuel Repository
Specifically, of the 99 percent or more of the curies removed from
the tanks, at Idaho, DOE already has finished calcining the wastes
destined for the spent fuel repository, representing on the order of 98
percent of the total tank waste radioactivity. At Savannah River, DOE
is currently vitrifying the wastes destined for the spent fuel
repository, representing on the order of 99 percent or more of the
total tank waste radioactivity, through the Defense Waste Processing
Facility. At Hanford, DOE is not as far along in the cleanup process,
since it is still building the principal facility it will use to
prepare waste for disposal at the spent fuel repository and developing
other aspects of its plans. There too, however, DOE anticipates that it
will treat and dispose of the vast bulk of the radioactivity in the
spent fuel repository using the new Waste Treatment Plant currently
under construction.
Waste Anticipated To Be Disposed of On-Site as Low-Level Waste
In addition, of the 99 percent or more of the radioactivity to be
removed from the tanks, at Savannah River and Hanford, DOE's plans call
for retrieving and processing the lower-activity salt waste from the
tanks that in most instances will have been further treated to remove
additional actinides and cesium for disposal on-site as low-level waste
in saltstone vaults at Savannah River and at a facility permitted under
the Resource Conservation and Recovery Act (RCRA) for mixed low-level
waste disposal at Hanford. Again, this waste represents a small
fraction of the radioactivity from the tanks--on the order of 1 percent
or less of the tank waste radioactivity at Savannah River and a small
amount of the tank waste radioactivity at Hanford. At both sites, this
waste would have to meet the performance objectives for disposal of
low-level waste specified in 10 C.F.R. Part 61 under which a member of
the general population cannot receive an annual dose of more than 25
millirem from the residues, and an inadvertent intruder must be
protected as well. In addition, at both sites, the waste would have to
be disposed of in accordance with State environmental law permits
because of its chemical constituents, and DOE would have to account for
this waste disposal in overall site remediation and closure under the
Comprehensive Environmental Response, Compensation and Liability Act
(CERCLA).
Waste Potentially Disposed of as Transuranic Waste at WIPP
Further, at Idaho and Hanford, of the 99 percent or more of the
curies removed from the tanks, DOE's plans call for retrieving and
processing some of the tank waste (representing a small fraction of the
radioactivity in the tanks) for disposal as transuranic waste at WIPP.
This would contain on the order of 1 percent of the tank waste
radioactivity at Idaho and less than 1 percent of the tank waste
radioactivity at Hanford. This includes the sodium-bearing waste which
comprises the remaining liquids in the 8 tanks in Idaho, and the
contents of between 8 and 20 tanks of the 177 tanks at Hanford. This
waste would have to meet WIPP's waste acceptance criteria in order to
be sent there. Its disposal there would have to be shown to be
consistent with the assumptions made in WIPP's performance assessment,
which demonstrates that the repository and the waste disposed of there
complies with the Environmental Protection Agency's standards for
disposal of transuranic waste and is protective of humans and the
environment. It also would have to comply with any other relevant WIPP
limits such as the WIPP Land Withdrawal Act's statutory limit on how
much remote-handled transuranic waste may be disposed of at WIPP. In
addition, DOE has committed to New Mexico to seek a specific WIPP RCRA
permit modification from the State addressing these waste streams
before sending them there.
Tank Residues
Finally, at all three sites, DOE's plans call for grouting in place
a very small amount of residual waste remaining in the tanks. DOE
anticipates that these residues will constitute on the order of 1
percent or less of the overall tank radioactivity. More importantly,
under DOE's plans, when this process is complete, the residual waste
grouted in place will have to meet standards for disposal of low-level
waste specified in 10 C.F.R. Part 61, under which a member of the
general population cannot receive an annual dose of more than 25
millirem from the residues, and an inadvertent intruder must be
protected as well. By comparison, a frequent flyer receives
approximately 100 millirem per year from cross-country airline trips,
and individuals receive at least 20 millirem from each medical X-ray.
The treated and grouted residues will also have to meet State
environmental law requirements with respect to their chemical
constituents and will have to be accounted for in overall site
remediation and closure under CERCLA.
SMALL BUSINESS CONTRACTS AND EM CLEANUP
Question. I realize that OMB is forcing DOE to increase the number
of contracts they extend to small business and at the same time DOE is
forcing the labs and sites to reduce their small business contracting
just so DOE can meet its ``quota.'' I don't think it makes sense for
DOE to manage a large number of small business contracts at each site.
This is exactly what led to the frustration that created the NNSA out
of the DOE. I'm so concerned about this trend that I've scheduled a
hearing in the Energy and Natural Resources Committee for this subject.
I fear that some of these procurements are placing contracts with small
businesses that jeopardize the safe effective performance of critical
work. There are two examples of small business set asides related to EM
that concern me. The first is the very complex site cleanup for Paducah
and the second is the draining of sodium coolant from the FFTF reactor
at Hanford, which is also an extremely dangerous job. How can you
assure me that EM is not jeopardizing effective completion of critical
tasks with this rush to entrust procurements to small businesses?
Answer. As part of its strategy to increase competition and the
cadre of business firms with the core competencies to effectively meet
the challenges of EM's accelerated cleanup mission, EM elected to issue
competitive procurement actions set-aside for small business firms.
Prior to making a final decision on competing a small business set-
aside contract, EM publishes a Federal Business Opportunities
(FedBizOps) sources sought notice inviting firms to demonstrate their
capabilities to perform the work, either alone or by teaming with other
firms. Responses to these notices are carefully reviewed to ensure that
qualified companies are available to perform the work prior to issuance
of a final solicitation. This process was followed for both Paducah and
the Fast Flux Test Facility contracts.
Firms, large and small, competing to perform EM work scopes are
held to the same high-level expectations. These firms must clearly
demonstrate a robust safety program, sound technical approaches to
safely complete the work, cost-effective work practices, commitment of
a strong management team, and demonstrated experience in performing
similar work. The same metrics for measuring performance after award
are applied regardless of the size of the firm performing the work.
EM is pursuing small business opportunities aggressively; and I am
confident that sufficient checks and balances, management commitment,
and accountability are built into the acquisition and project
management processes to assure that the small business firms selected
for these projects will contribute substantially to EM's success in
meeting accelerated cleanup schedules.
RISK BASED END STATES
Question. Earlier this year, EM raised serious concerns at Los
Alamos and other sites when you asked each site to sign off on a so-
called Risk Based End State (RBES), which would serve as the benchmark
measuring the end of cleanup at each site. I've heard concerns at some
sites that they did not have enough time to involve the public in a
decision of such serious impact on the people living and working at
these sites. Has EM provided additional time at each site for
development of the RBES, and is the public being seriously and
significantly involved in development of each of these RBES site
criteria?
Answer. Stakeholder involvement is an essential part of the RBES
process. The RBES documents will remain drafts for quite a while,
possibly even 6 months, until we believe that we have adequately and
openly addressed any issues or concerns with the public and with the
regulators.
DOE PLAN TO CONVERT DEPLETED URANIUM
Question. What is the status of the depleted uranium plants located
at Portsmouth and Paducah?
Answer. Construction on the depleted uranium hexafluoride (called
DUF6) project is on schedule for start by July 31, 2004. DOE
is working to issue the Environmental Impact Statement Record of
Decision which must be completed prior to the start of construction.
Question. Will these plants be able to accept waste material from
outside the State?
Answer. We note that DOE does not consider its DUF6 to
be waste and therefore, views the facilities as conversion facilities,
not waste processing facilities. Some cylinders containing
DUF6 are being received in Portsmouth, Ohio, from the East
Tennessee Technology Park in Oak Ridge, Tennessee. No other off-site
materials are currently planned for conversion at these sites other
than possible shipments between the two sites. However, there is
nothing in the design of the plants that would preclude their use for
other DUF6.
Question. Is there any additional R&D to be undertaken to
demonstrate the viability of these facilities?
Answer. No. The dry conversion technology the facilities will use
is a scaled up version of a process already commercially viable and in
use at Richland, Washington, and in Germany.
______
Questions Submitted by Senator Patty Murray
Question. Ms. Roberson, I understand you have decided to terminate
at the end of this fiscal year the partnership DOE has with the General
Services Administration to provide child care for Federal and
contractor employees at Hanford. I also understand that child care is
particularly tight in Richland, especially for infants, and that this
move is likely to displace 60+ children. In addition to affecting
operations of the existing facility, this decision almost certainly
will kill the plans for a new state of the art facility, for which bids
had already been received. Is DOE terminating this important employee
benefit at all of its facilities or at ANY other site except Hanford?
Answer. Employee benefits vary from site to site so a comparison of
one single area does not provide a true measure of the benefits that
are afforded our Federal and contractor workforce.
The Department is hopeful that GSA will continue its plans for the
new facility and sees no reason why our discontinuation of subsidy
payments should be a hindrance toward that goal if GSA's survey is
correct and the need for childcare in the Richland area is growing.
If GSA decides to pursue other Federal partnerships in the Richland
area, it would have many to choose from, including the Federal Bureau
of Investigation, the Postal Service and the Environmental Protection
Agency.
Question. Why is providing childcare suddenly no longer a priority?
Answer. EM's priority is environmental restoration. With regard to
the childcare facility, earlier this year a DOE assessment revealed a
level of participation and interest by Federal employees that was
inconsistent with the amount of Federal dollars being spent to
subsidize the childcare facility. Based on this assessment, and the
shrinking of both the Federal and contractor workforces as cleanup
projects reach completion, DOE believes these funds would benefit a
much broader range of people if invested in the workforce to accelerate
Hanford cleanup.
Question. Have you considered a longer transition period to ensure
DOE will continue to be a good corporate neighbor and allow a new, high
quality facility to be developed?
Answer. The notification period to GSA is 120 days, taking us
through the end of September 2004. This should be sufficient for the
private childcare facility operator to seek funding from other
entities.
Again we are hopeful that GSA will continue to pursue its idea of a
new facility.
Question. Will DOE (or GSA) be liable for costs incurred in the
design, bid proposals, etc. for the new childcare facility that will
now (likely) not be built?
Answer. GSA is the sole Federal agency responsible for the
construction of the new childcare facility. To date, we understand that
GSA has spent $275,000 on architectural design and energy modeling
contracts but has not awarded the construction contract for the new
childcare facility, so neither costs nor penalties are currently being
incurred.
Question. Ms. Roberson, contractors at the Hanford site and the
Hanford Atomic Trades Council have for years successfully negotiated
pension plan and other cost effective agreements--with the full
approval and endorsement of DOE. It is my understanding that the DOE is
actively pursuing new contracts for multiple projects, specifically the
Fast Flux Test Facility Closure Project, the 222 S Analytical Services
Project, and the River Corridor Closure Project. I am very concerned
that these Requests for Proposals (RFPs) contain a new two-tiered
pension system that only requires 5 years of pension contributions from
the winning bidder. Some might see this move as a back door attempt by
the DOE to reduce their costs by reducing requirements for pension
contributions.
Hanford employees have remained dedicated to completing the
challenging tasks of the mission. This spirit of labor/management
cooperation will be seriously jeopardized if workers are now told that
the pension benefits they have earned will need to be reduced in order
to save DOE money. I would like to know what you intend to do to
maintain the level of pension benefits workers have been promised and
have earned through years of their hard work at Hanford?
Answer. DOE agrees that the addition of new contractors and
multiple pension plans for Hanford employees may have potential impacts
on workers. However, the DOE Richland Operations Office will ensure
that the new contracts minimize any such issues. The Department
anticipates responsive resolution of any issues that may arise.
______
Questions Submitted to the Office of Environment, Safety and Health
Questions Submitted by Senator Pete V. Domenici
REPORTING OF INJURY AT DOE SITES
Question. I was disappointed to read in the Washington Post that an
Inspector General's draft report found that DOE failed to report a
significant number of injuries that occurred at DOE sites. The
Inspector General found that DOE maintained ``inaccurate and incomplete
accident and injury data.'' This article also alluded to the fact that
accelerated cleanup contributed to the behavior of not reporting worker
injury. Assistant Secretary Cook, since the responsibility for worker
safety and environmental protection falls under your watch; I would
like a full explanation as to how the IG has come to these conclusions.
Are these allegations of under-reporting accurate and if so, where and
to what extent has this occurred within the DOE complex?
Answer. We take all issues raised by the IG very seriously,
especially those involving safety. The Inspector General has a rigorous
process for generating reports and part of that process is asking for a
review of the draft report for factual accuracy. Our initial findings
indicate that many of the conclusions are based on out-of-date or
incorrect information. We identified and began corrective actions on
some of the items identified in the report over a year ago. In other
cases, the Program Offices have taken other measures to get up-to-date,
accurate information directly from the field sites, to resolve the
delay time in getting information into the data system. I do not agree
that the accident statistics for the Department are under-reported.
Question. What are you doing about the current findings of the
Inspector General that DOE is not accurately reporting worker injuries?
Answer. We are providing comments to the Inspector General on the
inaccuracy of some aspects of the report as it addresses reporting
worker injuries while continuing to implement the changes that have
been underway for over a year to correct other issues.
Question. Why are we learning of this activity from the Inspector
General and not your office? What are you doing to correct this?
Answer. Actions were already underway by my office to correct the
known problems with the reporting system, and by the Program Offices to
obtain accurate information in other ways until these actions were
completed.
OVERSIGHT REORGANIZATION REFORM
Question. Ms. Cook, your testimony references oversight changes and
restructuring of your Office in 2002 and 2003. In 2002, you noted that
the independent oversight functions were removed from your office and
you now work to promote ``safe and environmentally compliant conduct of
work.'' In 2003, your restructuring efforts describe cuts to management
and new focus on ``e-government initiatives.'' If you aren't performing
oversight in areas of worker safety--what office is?
Answer. The Office of Independent Oversight and Performance
Assurance performs independent oversight of safety and security for the
Department of Energy.
Question. Did any of the changes since 2002 result in your
inability to hold DOE contractors to the highest level of worker
safety?
Answer. DOE holds its contractors to the highest level of worker
safety. EH writes the policies and requirements and provides technical
assistance to the program offices who implement these requirements. The
Office of Independent Oversight evaluates DOE and contractor compliance
with these requirements. EH continues to analyze the information
provided by the Office of Independent Oversight, especially where
contractors may not be in compliance, in order to refine the
requirements to achieve the right outcomes; protecting our workforce
and the public. The changes in EH over the last several years has
allowed us to better focus on setting the right policies to drive the
right performance.
DOE SITE PROFILES
Question. Last year, DOE testified that it was in the process of
developing site profiles to pull together the necessary site data in
order to speed up the case approval process for workers that were made
sick while working for the Department. DOE's testimony stated that by
developing a complete understanding of the occupational hazards at each
of the DOE sites, it will help the doctors in evaluating claims of
exposure based on the hazards a worker may have been exposed to and
when. The site profiles will significantly improve the doctor's ability
to do their job. Where do we stand on the development of site profiles
and how much is being spent in fiscal year 2004 and how much have you
provided for this effort in fiscal year 2005?
Answer. DOE already provides all available medical, work history,
work exposure and facility information to the Physician Panels. We
consider the information DOE has been providing to the panels to be
adequate to support Physician Panel deliberations. With respect to
``site profiles'', the term is not clearly defined and the Department
believes that creating site profiles as commonly defined by advocates
of this process would be a costly and time consuming effort that would
not provide substantial assistance to Part D applicants. Further, it is
not clear whether there is even adequate data to profile toxic
exposures at DOE facilities in any reasonable way. Regulatory
requirements for the collection and maintenance of information relevant
to ionizing radiation exposures, such as the data used by NIOSH for
Part B, predate and far exceed such requirements for occupational
exposures to potentially toxic chemicals (Part D) at worksites. Such
requirements, referred to as job-exposure matrices, can be
exceptionally difficult, labor intensive, and expensive, if they are
scientifically feasible at all.
In fiscal year 2004, with the recent $23.3 million appropriations
transfer that Congress approved, DOE will spend roughly $49 million to
collect, compile, categorize and summarize the information required by
the Physician Panels process. Of this, roughly $24 million will be
spent on collecting information from the field sites and $25 million
will be spent on data quality control, compiling, categorizing,
summarizing and post-panel quality control. In fiscal year 2005, $14
million is being requested for these functions.
Question. How much will it cost and how long will it take to
develop a site profile at each of the 15 largest DOE facilities?
Answer. Currently, DOE is soliciting information on how to scope a
project for providing a ``site overview.'' This project would provide
for each site a generally standard format and improved categorization
of existing information. At this time DOE does not have a specific
dollar figure for this project. As discussed above, DOE believes that
the limited value to a qualitative assessment on some pre-defined set
of agents does not justify the high cost for developing this
information and, therefore, DOE has no current plans to conduct or
prepare comprehensive ``site profiles'' for DOE's facilities.
Question. Can you provide for the record a timeline as to when you
expect to have site profiles for the sites?
Answer. DOE does not have a timeline for the development of site
profiles. As discussed above, DOE believes it would not be prudent to
develop and prepare ``site profiles'' as that term is commonly defined.
However, DOE is investigating the development of site overviews that
would better package existing data by site.
BUDGET DETAILS
Question. The fiscal year 2005 request fails to provide the same
level of detail for the Office of Environment, Safety and Health as
provided in the fiscal year 2004 request, especially in the area of the
Energy Supply--Health Account. In addition to providing fewer details
of your spending priorities there is also significantly less money. The
budget provides $45 million. This is $22 million less than was provided
in fiscal year 2004. I would appreciate a written description of your
program budgets within each of the following accounts--Health, Employee
Compensation, and Corporate Safety.
Answer. The budget is broken down in detail commensurate with the
total budget amounts. However, the budget request was based on certain
assumptions.
Under Health
Occupational Health ($15,902,000).--This includes former worker
medical screening, former beryllium worker surveillance, medical
monitoring of former workers from Rocky Flats, integrated DOE
occupational medicine support, and a portion of the funding for the
Radiation Emergency Accident Center/Training Site (REAC/TS).
Public Health ($13,500,000).--This includes funding to other
agencies, including the National Institute for Occupational Safety and
Health (NIOSH), the National Center for Environmental Health (NCEH) and
the Agency for Toxic Substances and Disease Registry (ATSDR) for
independent energy-related studies relevant to DOE workers and
neighboring communities.
Epidemiologic Studies ($3,300,000).--This includes a collection of
both medical and exposure information to expand understanding of the
health effects of radiation, chemical and other hazards to current DOE
workers and the public.
International Programs ($12,520,000).--This supports the upgrading
and validation of our knowledge of radiation health effects among
workers and populations exposed to ionizing radiation in the former
Soviet Union and Spain, participation in the life span study of the
Hiroshima and Nagasaki exposed population and environmental monitoring
to support resettlement activities as well as special medical care for
a specific group of radiation-exposed individuals in the Marshall
Islands.
Total.--$45,222,000.
Under Employee Compensation
For EEOICPA, the fiscal year 2005 budget request is $43 million for
the operations of the EEOICPA Part D program, which includes the
following activities and funding allocations. Resource centers jointly
managed with the Department of Labor are funded at $2.4 million. These
centers provide outreach to potential EEOICPA applicants and support
during the application process. Collecting and producing medical, work
history, work exposure and facility information data from the DOE field
sites are provided $14 million. Processing the Part D cases up to the
Physician Panels, paying for the Physician Panels and providing for
quality controls are funded at $24.6 million. Additional Federal staff
to manage the 200 percent increase in case processing and the 900
percent increase in Physician Panel determinations that will be
required to eliminate the backlog of Part D applications at DOE in 2006
is provided $2 million.
Corporate Safety.--$10,883,000
Performance Assessment/Information Management ($2,000,000).--This
provides for the analysis and certification of DOE's performance by
synthesizing operational information, and also provides web-based
information technology support for effectively distributing safety and
health information.
Quality Assurance ($6,483,000).--This provides quality assurance
policies and requirements to support current DOE missions, and performs
evaluations and accreditations to ensure that the health and
environmental data that is generated by DOE is technically defensible.
This includes the operation of the Radiological and Environmental
Science Laboratory, a Federal reference laboratory that performs much
of the Department's evaluation and accreditation services.
Facility Safety ($1,600,000).--This supports appraisals of
accidents, facility authorizations bases and safety allegations, and
special safety reviews on specific topics such as seismic analysis,
fire protections, facility design and the startup/restart of
facilities.
Enforcement ($800,000).--This activity covers the statutory mandate
of the Price-Anderson Amendments Act of 1988 to enforce compliance with
Code of Federal Regulations nuclear safety requirements at DOE sites
and the enforcement of the Worker Occupational Safety and Health Rule.
Question. Where do you propose to make the $22 million in spending
cuts from the fiscal year 2004 appropriation to meet this year's
request?
Answer. The DOE EH health budget includes a variety of activities.
There are several items in the health budget that require less funding
in fiscal year 2004 comparable appropriation is $22 million more that
the fiscal year 2005 request. The comparison to prior year funding is:
FUNDING SUMMARY
[In thousands of dollars]
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Program/Activity Health Fiscal Year 2003 Comparable 50,051
Appropriation..........................................
Program/Activity Health Fiscal Year 2004 Requests....... 66,660
Program/Activity Health Fiscal Year 2004 Comparable 67,335
Appropriation..........................................
Program/Activity Health Fiscal Year 2005 Requests....... 45,222
------------------------------------------------------------------------
Of the total decrease of $22 million, several items account for a
decrease in the request of $16 million from fiscal year 2004 to fiscal
year 2005 includes:
--Decrease $12 million for international health studies. DOE's role
in certain studies is reduced as they are coming to closure.
The Department also plans to use carryover balances to meet
some fiscal year 2005 requirements. DOE is evaluating its
responsibilities and future involvement in these studies.
--Decrease of approximately $3 million for public health studies
around DOE sites because studies have concluded. These studies
are conducted by Health and Human Services (HHS) agencies. This
is transitioning to smaller, more highly focused studies, and
it is expected that HHS will complete the DOE studies in fiscal
year 2007.
--Decrease of approximately $1 million for DOE occupational health
programs, due to efficiencies to be realized by combining the
12 individual worker screening programs into a comprehensive
nationwide program. The nationwide programs will provide the
most efficient and effective method to guarantee that all
former DOE workers are offered the opportunity to participate
and will be served consistently across the complex.
Question. Please provide a summary of the Marshall Islands Program
budget for fiscal year 2003, fiscal year 2004, and proposed for fiscal
year 2005, which presents the Program's budget components, describes
the activities to be changed, and the reasons for such changes.
Answer. The following breakdown of the Marshall Islands Program is
provided for fiscal year 2003, fiscal year 2004 and fiscal year 2005.
[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Year Fiscal Year Fiscal Year
Program Activity 2003 2004 Allocated 2005
----------------------------------------------------------------------------------------------------------------
Medical......................................................... 2,340 2,100 2,100
Environmental................................................... 3,950 2,200 1,900
-----------------------------------------------
TOTAL..................................................... 6,290 4,300 4,000
----------------------------------------------------------------------------------------------------------------
There are no activities to be changed in the level of services
provided as part of medical surveillance and treatment of radiation-
related conditions in fiscal year 2005. The medical program provider
has managed the program for 6 years, therefore the program is under
review and options for its future design and management are being
considered. Upon review of options with Federal partners, the options
will be presented to the Government of the Republic of the Marshall
Islands, and the governments of the two affected atolls for discussion.
For the environmental program, the changes in fiscal year 2004 were
directed at clearing up the analysis backlog of the environmental
samples gathered form the Marshall Islands and the preparation a final
analytical summary report to support future program planning purposes.
To date $4.3 million has been allocated as detailed in the above chart.
Other than reductions associated with Congressionally directed prior-
year offsets and rescissions, the only difference between appropriated
and allocated-year-to-date is $1.5 million. That amount is being held
in reserve to address additional activities which will be developed in
conjunction with the Marshallese during the annual June-July meeting
sponsored by DOE.
The field missions for fiscal year 2004 were suspended to allow the
scientists to focus on this backlog. The suspension did not delay any
work required to assist in resettlement of Rongelap Island. In fiscal
year 2005, the environmental program will support resettlement
activities on Rongelap Island and the network of whole body counting
facilities. The funds requested are adequate for these two activities.
DOE AND HHS STUDIES
Question. DOE and HHS have signed cooperative MOUs over the past 15
years that require DOE to provide funding to the National Institute for
Occupational Safety and Health (NIOSH) for epidemiological studies on
former DOE workers. I understand that the existing MOU will expire at
the end of this year. Will you sign another agreement to provide for
independent health studies of former DOE workers?
Answer. It is the intention of DOE to develop, in cooperation with
HHS organizations, a new MOU for the conduct of independent health
studies. A draft revised MOU has been prepared; following internal
review it will be sent to HHS for comment.
MARSHALL ISLANDS HEALTH TESTING
Question. The traditional mission of the Marshall Islands Program
has been to monitor health and the environment in the four affected
communities. In the 1990's, the Program entered into MOAs with the four
Atolls to support remediation and resettlement activities, but DOE's
level of commitment to these new activities is unclear. Does DOE regard
its support for remediation and resettlement activities as dependent on
its traditional monitoring activities?
Answer. DOE is committed to and will continue to meet its
responsibilities to provide medical surveillance and treatment for
radiation-related conditions among the exposed population on Rongelap
and Utrik Atolls and to support resettlement activities. DOE will be
negotiating annual work plans with each of the four atolls to assure
continued environmental monitoring support for resettlement.
Question. Are these activities undertaken on an ``as funds
available'' basis, or would DOE request funds if necessary to support
the remediation and resettlement activities set forth in the various
MOAs?
Answer. DOE annually requests funding that will assure continuity
in medical surveillance and treatment of radiation-related conditions
and support for resettlement activities. Environmental monitoring
activities in the MOU's have in the past been supported on an ``as
funds are available'' basis. It is DOE's intention to request and
dedicate resources to meet its legislative responsibilities.
Question. What is the status of DOE's MOAs with the four affected
communities? Does DOE plan to extend the MOAs upon on their expiration?
Answer. The Bikini MOU expired several years ago and has been
replaced with an annual work plan; the Rongelap MOU extension expires
this June; the Enewetak MOU expires in 2005, and the Utrik MOU in 2007.
It is DOE's intention to explore with representatives of the four
Atolls transitioning from MOUs to annual work plans that would focus
activities on providing environmental monitoring support to
resettlement.
Question. Do you plan to have a physical DOE presence in the
Marshall Islands, if so, where and what will their responsibilities
entail?
Answer. DOE is evaluating the need for a physical presence, beyond
the logistical support office on Kwajalein Island, in order to provide
environmental monitoring support to resettlement.
MARSHALL ISLANDS CARRYOVER FUNDS
Question. It is my understanding that $1.5 million in fiscal year
2004 funds has not been expended at this time. Is that correct? What
work is not being performed in the Marshall Islands as a result of the
withholding of this $1.5 million?
Answer. It is correct that $1.5 million in fiscal year 2004 funds
appropriated for the Marshall Islands are not currently planned to be
expended in fiscal year 2004. This funding was identified for
conducting an environmental mission to the Marshall Islands.
Question. Given that there are 6 remaining months in this fiscal
year, why hasn't this funding been obligated?
Answer. It is felt that it is most important at this time to
dedicate contractor resources to the development and publication of
scientific and technical reports and articles on the latest
radiological status. These reports and articles, providing the latest
results of analysis of samples from previous environmental missions,
will be critical to informing all parties in the conduct of
deliberations concerning the Republic of the Marshall Islands Changed
Circumstances Petition. The Department conducts annual meeting with the
Marshallese and jointly prioritizes additional activities. These funds
may be used for those specific activities or other follow-on activities
jointly determined to be needed.
Question. Could the remaining $1.5 million be used pursuant to
DOE's MOAs with the four affected atolls? If yes, why hasn't DOE
pursued this option?
Answer. It is important that contactor efforts be dedicated to the
development and publication of scientific and technical reports and
articles analyzing the results of prior environmental missions at this
time. It is DOE's intention to support activities in the MOU's
consistent with these legislative responsibilities. The remaining $1.5
million will be dedicated to the Marshall Islands program in the
conduct of future activities in support of the medical care and
resettlement activities.
Question. Can this $1.5 million be reprogrammed to other activities
within DOE or must it be expended within the Marshall Islands Program?
Answer. It is DOE's intention to support its legislative
responsibilities in the Marshall Islands. The $1.5 million could be
reprogrammed in fiscal year 2004, with Congressional approval, but DOE
has no intention of doing so at this time.
EXISTING SAMPLES--MARSHALL ISLANDS
Question. What is the status of the previous samples that have been
taken by Livermore scientists at the Marshall Islands?
Answer. The DOE contractor is in the process of completing analysis
and writing scientific and technical reports and articles to provide
the latest data and information on radiological conditions on the four
Atolls in the Marshall Islands.
Question. Is it correct that, at this time, the samples have been
analyzed and the Department is in the process of preparing a summary
report? If yes, when will that report be available?
Answer. Yes, the DOE contractor is in the process of preparing
scientific and technical reports and articles on radiological
conditions in the Marshall Islands. The contractors draft report is to
be submitted to DOE for review. DOE has seen an early draft of the
Whole Body Counting results, is awaiting a draft report on plutonium
uptake data results, and expects a draft report on ``where we stand''
on the radiological characterization of the four Atolls in the near
future. The contractor has not determined its delivery dates for the
deliverables to DOE.
MARSHALL ISLANDS ANNUAL MEETING
Question. Will Program officials hold their next annual meeting
with representatives of the four Atolls in June 2004? If not, when will
that annual meeting take place?
Answer. DOE Program officials do plan to hold the annual meeting
with representatives of the four Atolls in June 2004 timeframe.
______
Questions Submitted by Senator Patty Murray
Question. Ms. Cook, why ramp down the Hanford Former Worker Program
(Hanford FWP) if there are over 2,700 workers with significant past
exposures and who have requested examinations waiting to be screened at
that site?
Answer. We are not ramping down the program. We are transitioning
to a nationwide medical screening program that will serve all former
workers from all DOE sites locally. The Hanford Former Production
Worker Medical Screening Project was initiated in 1996 as a 5-year
pilot project. Any former worker interested in medical screening who is
not seen this year by the Hanford Former Production Worker Medical
Screening Project will be seen by the nationwide program, which is
scheduled to be in place in October 2004.
Question. Ms. Cook, how will USDOE ensure that workers who are
currently awaiting exams in the FWPs do not risk being dropped from the
program in the transition to a national program (subject of new RFA)?
Answer. DOE has provided the principal investigator of each site-
specific project with a toll-free number that can be given to
individuals interested in screening but for whom the ongoing medical
screening projects cannot see this year. Additionally, through the
existing site-specific projects, DOE will soon mail an information
package regarding the transition to a nationwide program. Included in
this package is an authorization for individuals to sign requesting
that their names and mailing addresses be provided to DOE. DOE will
then send them additional information upon initiation of the new
nationwide program.
Question. Ms. Cook, has performance of medical screening grantees
known as the former worker program been satisfactory?
Answer. For the most part, yes. However, there are several lessons
learned from this effort. These include the following:
--DOE's central management of these projects is complicated by the
multiple management teams within each of the numerous
cooperative agreements, each with layers of their own
management and subcontractor management;
--Multiple layers of management per project resulting in increased
overhead charges and fees;
--Communication between DOE and participating organizations, as well
as participating organizations and former workers, is
cumbersome;
--Recruitment of participants has been a major cost for many of the
projects, with additional years of funding for some projects
resulting in minimal increases in worker participation;
--Coordination efforts between the FWP and the Former Beryllium
Worker Medical Surveillance Program at DOE sites have been
challenging;
--The significant resource needs for each of the site-specific
efforts conducted to date has resulted in a delay in the
initiation of screening for former workers at remaining defense
nuclear sites.
Question. Ms. Cook, how will the new national program coordinate
State workers compensation and EEOICP claims (sub-part D), e.g. will
the examination sites around the country be expected to file Washington
State worker's compensation claims and sub-part D claims as workers
currently get?
Answer. The current programs were not expected to file state
workers compensation claims on behalf of workers. The workers who
participate in the new program will be directed to the Federal and
State resource centers as appropriate, where they will get the
assistance they need to file.
Question. Ms. Cook, why are the Former Worker Programs (FWPs) being
asked to destroy workers' data? What are the risks to privacy when such
data are protected by Institutional Review Boards responsible for
protecting human research subjects?
Answer. The Former Worker Programs are being asked to handle
records appropriately based on the workers' desires. The worker gets to
decide what happens to their records. Of course, a worker may have
their own records. Then the worker can decide if they would like the
DOE to keep copies. The worker may also decide that they would like the
former program to have copies of their records and use them for other
purposes, but that is a decision to be made by each worker.
Additionally, the clinics that conduct the medical screening under the
FWPs are required by State law to maintain the workers' medical records
for a certain number of years. Workers have the option of obtaining
copies from these clinics in the future as well.
Question. Ms. Cook, how will the Office of Worker Advocacy (OWA)
obtain records from FWPs who are being told to destroy such records?
Answer. The Office of Worked Advocacy can only obtain records from
the worker, or with the worker's permission. The DOE does not have open
access to workers' records.
Question. Ms. Cook, has NIOSH reviewed the new RFA, as required by
Section 3162 of the 1993 Defense Authorization Act?
Answer. Section 3162 of the 1993 Defense Authorization Act does not
require NIOSH to review the RFA. We have also referred back to the
original MOU signed by Energy Secretary Hazel O'Leary and HHS Secretary
Donna Shalala in August 1995, and this MOU does not call for HHS
(NIOSH) review of DOE-issued RFAs either.
Question. Ms. Cook, are lessons learned and experience from the
FWPs during the 8 years of operation being utilized in the RFA?
Answer. Yes, they are. The current program is expensive and
cumbersome to operate when divided into 12 separate cooperative
agreements. There are workers at many sites that are still waiting for
an opportunity to have screening exams. We understand we must provide
this screening more efficiently and effectively and we believe the
nationwide medical screening program will accomplish this objective.
--DOE's central management of these projects is complicated by the
multiple management teams within each of the numerous
cooperative agreements, each with layers of their own
management and subcontractor management;
--Multiple layers of management per project resulting in increased
overhead charges and fees;
--Communication between DOE and participating organizations, as well
as participating organizations and former workers, is
cumbersome;
--Recruitment of participants has been a major cost for many of the
projects, with additional years of funding for some projects
resulting in minimal increases in worker participation;
--Coordination efforts between the FWP and the Former Beryllium
Worker Medical Surveillance Program at DOE sites have been
challenging;
--The significant resource needs for each of the site-specific
efforts conducted to date has resulted in a delay in the
initiation of screening for former workers.
______
Questions Submitted to the Office of Civilian Radioactive Waste
Management
Questions Submitted by Senator Pete V. Domenici
BUDGET REQUEST
Question. The President's budget requests $880 million for Yucca
Mountain. A significant portion of this funding is to be paid for by
fees assessed to utility customers. The fund will collect $749 million
this year. The budget proposes that the annual receipts be reclassified
as discretionary funds and then appropriated. As the former Budget
Committee Chairman, I know you can't waive a magic wand to reclassify
these fees. It requires legislation and some degree of cooperation. I
am not optimistic this can be accomplished this year. However, if we
fail to get agreement to reclassify the fees, the Senate Budget
Resolution assumes a minimum level of funding of $577 million. If
Congress is only able to provide $577 million, what activities will the
Department be forced to defer in fiscal year 2005?
Answer. National and Nevada transportation activities would again
be deferred, with no reasonable chance for schedule recovery. Site
infrastructure maintenance work would be delayed, and effort devoted to
repository design and development would be reduced.
Question. Will this significantly delay the opening of Yucca
Mountain beyond the 2010 target date and can you estimate what impact
this would have on litigation costs for the department?
Answer. We are at the point where any reduction in our funding
profile, in fiscal year 2005 or the out-years, will adversely affect
the scheduled 2010 opening date for the repository. If funding for
fiscal year 2005 is frozen at the fiscal year 2004 level of $577
million, the Department's ability to meet the scheduled 2010 repository
opening date will be severely compromised and most likely lost. To
date, more than 65 claims have been filed by utilities in the Court of
Federal Claims for breach of contract to recover monetary damages
incurred as a result of the Department's delay. For each year of delay
beyond 2010 that the Department is unable to begin accepting spent
nuclear fuel from commercial reactors pursuant to the Department's
contracts with utilities, the Department estimates that the utilities
will incur costs of $500 million a year to store their spent fuel at
utility sites, some portion of which the Department would be liable
for. A delay in opening the repository could substantially increase the
government's liability.
YUCCA MOUNTAIN--METAL STORAGE CONTAINERS
Question. I have read that Nuclear Regulatory Commission (NRC)
Chairman Nils Diaz disputes the controversial evaluation made by the
Nuclear Waste Technical Review Board regarding the corrosion analysis
of the metal containers that will be used at Yucca Mountain. Dr. Chu
could you please explain where you believe the science comes out on
this issue and share with the committee how site managers have dealt
with this issue?
Answer. The EPA's radiation protection standards and NRC's
licensing regulations require DOE to evaluate long-term repository
safety based on risk to the public. This requires an assessment of the
total system, and must take into account the likelihood of events
occurring and their effect on public health and safety.
The NWTRB's report focuses on a specific component of the
repository system, namely the disposal canisters, and does not address
the effect on the safety of the total system. In addition, the NWTRB
position relies on the presence of very specific conditions in the
repository tunnels, which DOE technical studies show are very unlikely
and will have no significant effect on public health and safety.
DOE's current design will meet the EPA and NRC regulations, and we
will demonstrate this in our license application to the NRC. DOE will
continue to discuss the corrosion issues with the NWTRB at their
regularly scheduled public meetings. Finally, if required by the NRC,
the issues will be fully and openly explored during the licensing
proceedings.
Question. Do you believe that the U.S. population would be safer to
locate spent fuel in Yucca Mountain as opposed to leaving the waste
where it currently is scattered across the country?
Answer. As Secretary Abraham indicated in his Yucca Mountain Site
Recommendation statement, spent nuclear fuel and high-level radioactive
waste is currently stored in surface facilities at nearly 130 locations
in 39 States awaiting final disposition. Most of these temporary
storage facilities are located near major population centers, and
because nuclear reactors need abundant water, are located near rivers,
lakes and seacoasts. More than 161 million Americans live within 75
miles of these temporary storage facilities. It is clearly preferable
to locate these wastes at Yucca Mountain, on Federal land, more than 90
miles from any major population center, where they would be placed
1,000 feet underground.
YUCCA TRANSPORTATION
Question. It is my understanding that the Department has not made a
final decision as to whether it will use rail or truck transportation
to move the waste to Yucca, or decided on a specific route. When will
the Department make its final decision and begin the Environmental
Impact Study?
Answer. On April 2, 2004, I signed the Record of Decision selecting
mostly rail as the transportation mode, and the Caliente corridor as
the rail corridor in Nevada. To initiate the Environmental Impact
Statement development process for a specific rail alignment within the
corridor, DOE conducted five public scoping meetings in Nevada from May
3 through May 17, 2004. The public comment period is scheduled to end
June 1, 2004. We expect to issue the Draft EIS early next year and
issue the Final EIS later in the same year.
SUBCOMMITTEE RECESS
Senator Domenici. That's what it is. So we stand in recess
until the call of the Chair.
[Whereupon, at 11:45 a.m., Wednesday, March 31, the subcom-
mittee was recessed, to reconvene subject to the call of the
Chair.]
ENERGY AND WATER DEVELOPMENT APPROPRIATIONS FOR FISCAL YEAR 2005
----------
TUESDAY, APRIL 20, 2004
U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
The subcommittee met at 10:05 a.m., in room SD-124, Dirksen
Senate Office Building, Hon. Pete V. Domenici (chairman)
presiding.
Present: Senators Domenici, Cochran, Burns, Craig, Stevens,
Reid, Murray, and Dorgan.
DEPARTMENT OF THE INTERIOR
Bureau of Reclamation
STATEMENT OF JOHN W. KEYS, III, COMMISSIONER
ACCOMPANIED BY:
J. RONALD JOHNSTON, PROGRAM DIRECTOR, CENTRAL UTAH PROJECT
COMPLETION ACT OFFICE
BOB WOLF, DIRECTOR, BUDGET OFFICE
PAM HAYES, BUDGET OFFICE
OPENING STATEMENT OF SENATOR PETE V. DOMENICI
Senator Domenici. The hearing will please come to order. We
understand Senator Reid will be joining us shortly, perhaps
some other Senators, but we're going to go right on through
with what we've got to do today.
Okay, Panel One will be Mr. John Keys, Commissioner of the
Bureau of Reclamation. We welcome you, Commissioner, and thank
you for all your hard work. We know this is a very difficult
time for you because of the budget. If you don't mind, and
Senator Burns doesn't mind, I'd like to summarize where we are.
We're once again in a difficult position because of some
assumptions that the White House makes, that OMB makes, with
reference to how we might save some money or maybe add some
money to our pot, which I don't think we're going to be able to
do. So today the Bureau of Reclamation and the Corps of
Engineers--and we will appropriately address the General when
he comes up here, with reference to this being his last
testimony before he leaves--there will be two panels, and, in
the tradition of the subcommittee, this year we will begin with
the Bureau, and then we will go the Corps as a second panel.
This subcommittee has jurisdiction over our country's water
resources, under which falls the Bureau of Reclamation and the
Corps of Engineers. Both agencies are responsible for managing
this precious national resource in a cost-effective manner,
while balancing the needs of its diverse users.
I believe the mission of these two agencies will only
become more critical over time, as increasing pressure is
placed on our water resources. Unfortunately, I fear this is a
budget request that only exacerbates the problem that we face
in addressing our various water resource requirements. Overall,
I believe it will be very difficult, if not impossible, to meet
what I consider a workable budget for these two agencies
because the administration has proposed such a low starting
point.
For the Bureau of Reclamation, for instance, the President
has requested, for fiscal year 2005, $956 million, a $14
million increase over 2004. However, that request assumes an
offsetting collection of Power Marketing Association--Senator
Reid, you know that's not possible; and welcome to the
meeting--and the maintenance of activities which are not likely
to be enacted, and, therefore, effectively becomes a cut of $30
million. If you back out these assumed savings, which are not
going to happen, which I regret--OMB continues to try, and puts
them in, knowing full well, they're not going to happen--then
if you back out these assumed savings, the true 2005 request is
$926 million, a $17 million reduction over 2004.
There are a few items of particular concern regarding the
Bureau's budget. The proposed funding for the silver minnow, a
listed species in my home State of New Mexico, is $18 million--
a listed species, which I don't believe can get along with that
small amount--that's a $14 million reduction from 2004, and
we've not been able to make any real headway in establishing
alternatives that might cost less. Now, I know that the
administration does not find this as high a priority as I do,
but I believe this number is just not workable.
Recently, the committee held a hearing regarding the
Animas-La Plata. You're fully aware of that hearing's contents,
Mr. Commissioner, and the understated cost estimate. As you
know, I shared my frustration, as did some other Senators, with
the Bureau, because they permitted this to occur. And the
Department knows how a number of us feel about this
predicament. As we look forward, I must say that I am concerned
that this year's funding request does not take into account
this recent cost increase in the project.
This year, the administration proposes to replace the
Western Water Initiative by Water 2025, and the request is $20
million, up $11.6 million from 2004. The program is to continue
to address critical western water issues. The biggest change
here is that this program is proposed to become a grant-based
effort, whereby local projects would meet criteria in order to
be a recipient. Actually, with the water needs in the country,
it is almost hilarious to have a proposal for $20 million for
the water needs of our country.
Last year in my State, the Middle Rio Grande District was
provided funds under the Western Water Initiative. I'd like to
hear from you how this effort has improved the situation in the
West and on the Rio Grande and Albuquerque.
PREPARED STATEMENT
Now, for the Corps, we have similar problems. I will wait
until we get the Corps, and then make my statement regarding
the same.
[The statement follows:]
Prepared Statement of Senator Pete V. Domenici
The committee will please come to order.
Today we have the Bureau of Reclamation and the Corps of Engineers
before us to testify regarding their fiscal year 2005 budgets. There
will be two panels, and as the subcommittee's tradition dictates, this
year we will begin with the Bureau of Reclamation in the first panel
and the Corps of Engineers in the second panel.
This subcommittee has jurisdiction over our country's water
resources, under which falls the Bureau of Reclamation and the Corps of
Engineers. Both agencies are responsible for managing this precious
natural resource in a cost-effective manner while balancing the needs
of its diverse users.
I believe that the mission of these two agencies will only become
more critical over time, as increasing pressure is placed on our water
resources. Unfortunately, I fear this is a budget request that only
exacerbates problems we face in addressing our various water resource
requirements. Overall, I believe it will be very difficult to meet what
I would consider a workable budget for these two agencies because the
administration has proposed such a low starting point.
For the Bureau of Reclamation, the President has requested for
fiscal year 2005 $956 million, a $14 million increase over fiscal year
2004. However, the request assumes an offsetting collection for Power
Marketing Association operation and maintenance activities which are
not likely to be enacted and therefore effectively becomes a cut of $30
million. If you back out these assumed savings, the true 2005 request
for the Bureau is $926 million, a $17 million reduction from fiscal
year 2004.
There are a few items of particular concern to me regarding the
Bureau's budget. The proposed funding for the silvery minnow, a listed
species in my home State of New Mexico, is $18 million, a $14 million
reduction from fiscal year 2004. Now I know that the administration
does not find this as high as a priority as I do, but I believe this
number is just not workable given the State's continued drought. I will
discuss this further when we get to the questions.
Recently, this committee held a hearing regarding the Animas-La
Plata project and the understated cost-estimate. As you know
Commissioner, I shared my frustration with the Bureau and the
Department about how we got in this predicament. I am sure you share my
same frustration. As we look forward, I must say that I am concerned
that this year's funding request does not take into account this recent
cost increase in the project.
This year the administration proposes to replace the Western Water
Initiative by Water 2025 and the request is $20 million, up $11.6
million from fiscal year 2004. The program is to continue to address
critical Western water issues. The biggest change here is that this
program is proposed to become a grant-based effort whereby local
projects must meet criteria in order to be a recipient. The proposed
cost-share is 50/50.
Last year the Middle Rio Grande Conservancy District was provided
funds under the Western Water Initiative. I'd like to hear from you how
this effort has improved the situation on the Rio Grande and elsewhere
in the West.
For the Corps in fiscal year 2005, the President has requested
$4.215 billion, which is $356 million below the fiscal year 2004
enacted of $4.571 billion. There are a variety of policy changes, most
of which I find ridiculous and irresponsible. Mr. Woodley, I will tell
you that in many instances in the Corps' budget it appears as if you
cut the Corps' budget and then after the fact, you tried to justify it
by proposing a change in policy.
The two that come to mind are the beach restoration policy which
you propose to abolish. The second is the 29 projects, currently mid-
construction--let me repeat, mid-construction--which you propose to
cancel altogether. Now, how can you honestly propose to cancel a
project half-way through construction, so that the Federal Government
cannot realize any of the projects benefits and protections? I will
tell you Mr. Woodley you will not find this provision enacted at the
end of the year.
The Corps' request, like the Bureau's, assumes again this year an
offsetting collection for direct funding Power Marketing Association's
operation and maintenance activities. This provision is included in the
current draft of the Energy Bill but does not cover fiscal year 2005.
The effect of not having this enacted is that it results in a further
cut of $150 million making the true fiscal year 2005 request $4.065
billion, an 11 percent reduction from fiscal year 2004.
I would like to share with my colleagues who may not already be
aware, that the Corps is the project management agent in Iraq. They are
the agency directly tasked with the physical reconstruction of Iraq
because of both its expertise in project management on a large scale,
and in the rehabilitation of critical infrastructure.
I find it ironic that the Corps' talent we are all relying on so
heavily in Iraq is the very same one that is most negatively impacted
by the administration's budget. I believe that if the administration
had its way, the Corps would merely become an operations and
maintenance agency. I will tell you Mr. Woodley that the very Corps
talent we are utilizing in Iraq was only developed as a direct result
of its domestic work in all of our States.
I think the administration is missing the point that this country's
economic well-being is closely linked to its waterways, be they rivers,
harbors, or wetlands. Further, it is in our interest to ensure that we
maintain these resources for our continued successful competition
within the world marketplace.
This country has an aging water resources infrastructure. For
example, approximately 50 percent of the Bureau of Reclamation's dams
were built from 1900 to the 1950's, before the current state-of-the-art
construction techniques, therefore they require special maintenance
measures. Even though budgets are tight, I am concerned that no one is
working to address this longer term problem. An aging infrastructure is
one of those problems that we all put off until we absolutely have to,
which in the end, will just cost us more and may very well endanger
life and property.
More importantly, the budget exercise we go through each year is
not an effort to figure out how little we can spend, but one that
carefully balances the greatest needs with our limited resources.
I would like to talk today about the impact the proposed fiscal
year 2005 budget will have on both agencies and what the Congress can
do to ensure that they can continue to effectively manage the country's
water resources.
On our first panel will be the Bureau of Reclamation. Appearing
before us will be Commissioner of the Bureau of Reclamation, John Keys,
and Program Director Ronald Johnston from the CUP Office.
I would like to welcome the members of the second panel from the
Corps of Engineers. They are Assistant Secretary for Civil Works, John
Paul Woodley, Jr.; Lieutenant General Flowers, Chief of Engineers;
Major General Griffin, Director for Civil Works; and Rob Vining, Chief,
Programs Management Division.
I would ask both panels to keep your statements to 10 minutes if
possible.
Senator Reid would you like to make your opening remarks before we
start off with the Commissioner?
Senator Domenici. Now, having said that, if you don't mind,
Senator Reid, I will proceed on the basis of arrival, and----
Senator Reid. Sure, that's fine.
Senator Domenici [continuing]. Senator Burns has been
waiting for a long time.
Senator Burns. I'd yield to the Ranking Member.
Senator Domenici. Thank you so much.
Senator Reid.
STATEMENT OF SENATOR HARRY REID
Senator Reid. Thank you very much, Senator Burns.
Appreciate your courtesy.
I first want to thank the witnesses that we're going to
have today for the two panels, Commissioner of the Bureau of
Reclamation, and, of course, General Flowers, who knows--and
the Assistant Secretary, John Woodley.
It's awkward and difficult, I know, for you to defend the
budget proposals presented by the administration this year. For
fiscal year 2005, as my friend, Senator Domenici has indicated,
the administration has proposed large spending increases for a
number of our Nation's defense and homeland security. And I
support that. But to have a secure Nation includes things other
than the things that explode. We have to do what we can with
the Bureau of Reclamation and the Army Corps to make sure that
these projects also are funded at a level that we can live
with.
Everyone should understand, if we went forward with this
budget, it would cost the American people more to shut the
projects down than would be available for few remaining. It's
troubling.
We cannot secure the homeland without a strong economy. We
have with us today the Chairman of the Homeland Security
Subcommittee of Appropriations, Senator Cochran, an important
new subcommittee. And I support the subcommittee and the
problems that they have.
Take, for example, water resource projects funded in this
bill. They, in my opinion, are a significant part of our
national economy and provide important and positive economic
benefits. The chief of engineers cannot even recommend a
project to this administration or this Congress unless the
analysis shows that positive net economic benefits will accrue
to the national economy. The same is true for the Commissioner
of the Bureau. Therefore, the only conclusion I can draw from
this budget is that the administration places our economy, our
economic security, in a different category than our homeland
security. I don't share this view. I believe it's shortsighted.
Water resource infrastructure benefits every American. How
many of us realize that a typical household uses only 50 to 85
gallons of water a day? However, it takes nearly 1,200 gallons
of water per person per day to meet the needs of farmers,
factories, electric utilities, and many other organizations
that make it possible for us to have food on our table, a
computer on our desk, and power for our homes.
During a hundred years, the Bureau of Reclamation has had a
major impact on life in the West. The first project ever in the
history of the country was the Newlands Project in Northern
Nevada, which is still operable. Without Bureau water projects,
the western population economy could not be sustained.
Certainly, that's the case in the State of Nevada.
The Bureau and the Corps water-storage projects have a
total capacity of nearly 570-odd-million acre feet. This
provides municipal and industrial water supply to millions of
our citizens. The water-supply infrastructure provided by the
Bureau and the Corps in the West are the lifeblood of the
communities they serve. Without these investments, the
tremendous population growth in our western States would not
have been possible. Further, the tremendous bounty of our
western farms could not be achieved without these projects.
Today, the Bureau is having a major impact on many of our
citizens' lives in the Great Plains providing clean drinking
water where many have never had it before. In many of our
western States, the water that comes into people's homes is the
color of a strong cup of tea. Water out of the Colorado, until
it's strained, is like mud. When people try to wash their
clothes without the work done by the agencies I've spoken of,
it stains them. Sinks, tubs, and toilets are all stained by
this water. The Bureau's rural water programs have been a
godsend to these communities. However, funding for these
programs needs to be increased, not decreased. I'm glad that,
for the fiscal year 2005, the administration seems to recognize
the worth of these programs. I hope so, anyway.
Reclaimed water projects in the West have allowed many
States to stretch their precious water resources. Nevada relies
heavily on recycled water for golf courses and water features
on the Las Vegas strip and for many other uses. Without this
recycled water, Nevada would find it very difficult to live
within its allocation on the Colorado River. Yet funding for
these vital projects was again severely cut this year.
The people preparing this budget don't realize it, but the
Federal limit for most of these projects is extremely low to
begin with. The Federal dollars, when leveraged with the State
and local dollars, make these projects viable. The Bureau and
the Corps provide about 35 percent of the Nation's
hydroelectric power, which amounts to nearly 5 percent of the
total U.S. electric capacity. Four out of five homes in the
Northwest are powered by hydroelectric.
The administration's budget request contains a huge number
of gimmicks designed to mask the huge deficits they're running
up. The administration has again recycled the hydropower
gimmick for the Corps, and expanded it to include the Bureau.
The budget proposal includes the assumption that the Power
Marketing of the administration, as Senator Domenici has said,
will contribute $30 million toward operation and maintenance of
Bureau hydropower facilities and $150 million toward Army Corps
facilities. This is just absolutely foolishness.
Enabling legislation of these proposals has not been
enacted. We could ignore the proposal and not fund a portion of
Bureau and Army Corps hydropower. This would have an extreme
impact on electricity production. The other option is for us to
appropriate the necessary funds. To take funding away from
other priorities to fund this unfunded necessary task is--due
to these budget gimmicks. This is the third straight year that
the administration has included this proposal for the Army
Corps, and we still don't have the enabling legislation.
One would think we're sending the appropriate message in
this proposal, but someone doesn't understand it. Forty-one
States are served by the Corps ports and waterways. These ports
and waterways provide an integrated, efficient, and safe system
for moving cargo. Two-point-three billion tons of cargo are
moved through these ports and waterways. The value of this
cargo to our national economy is $700 billion. Navigable
waterways generate over 13 million jobs and nearly $150 billion
in Federal taxes.
The budget proposal cuts operation and maintenance funding
to low-use waterways and ports. This is akin to not funding
snow removal on secondary streets, while completely clearing
the interstate highway system. You end up with a great system
with no way to fully utilize it. The same is true of low-use
waterways and ports and their relations to our deepwater
harbors. The inland waterway system operates as an integrated
unit. Not funding a portion of it drags down other parts of the
system.
Average annual damages prevented by the Corps flood-control
projects exceed $20 billion. From 1928 to 2000, cumulative
flood damages prevented, when adjusted for inflation, were $709
billion, for an investment of $122 billion. That is nearly a
6:1 return. It's hard to find many things in the Federal budget
that have a 6:1 rate of return, and yet this area has been
severely underfunded in the budget. Again, only the Simms
Bayou, Eastern Texas project, and Westbank, in the vicinity New
Orleans, projects were adequately funded. The Corps will likely
have to juggle the funding shortfalls for remaining projects to
keep work going on them. Remember what I said initially. To
follow what we have in this budget would cost more than we
would save, and that's an understatement.
The President's budget proposals also include another new
beach policy. It's the third year in 3 years. This is the worst
one yet. I have to believe that someone in the bowels of the
administration that comes up with these policies isn't
thinking. Beaches are the leading tourist destination in our
country. California beaches alone receive nearly 600 million
tourist visits every year. This is more tourist visits than to
all the lands controlled by the National Park Service and the
Bureau of Land Management combined. Beach tourists contribute
$260 million to the U.S. economy and $60 billion in Federal
taxes, yet for this budget that we're asked to approve, the
administration has decided that the Federal Government should
only participate in the initial construction of beach
restoration, and that local interests should be responsible for
all subsequent beach renourishments. This proposal tells our
citizens that government will provide your initial storm-damage
protection, but after we finish, you're on your own.
The impacts of this policy resonate through this budget,
and are impacting execution of funding provided this year. Both
the Corps and Bureau contribute to our Nation's environmental
protection. Over $1 billion, or 25 percent of the Army's Corps
fiscal appropriation, were targeted for environmental
activities. Reclamation expended a similar percentage on their
budget.
One final note. I would be remiss if I didn't mention the
Brazos Island Texas Project--the Island Harbor Texas Project.
In fiscal year 2004, the first year of funding was provided to
determine the Federal interest. The fiscal year 2005 budget has
unilaterally determined that not only is the project in the
Federal interest, but it should be funded for construction even
though a feasibility study has not been conducted, nor has the
project been authorized. Five hundred thousand dollars provided
in the request to conduct a feasibility study, and $9\1/2\
million was provided to construct this unauthorized project. I
can't remember a time when funding was provided for these two
phases at the same time. This is astounding, in light of the
fact that the administration is holding up funding for numerous
projects that have been fully vetted by the Corps and the
Assistant Secretary, yet the administration exempted this
project not only from the entire review system, but also from
being authorized by Congress for construction. This project
should face the same scrutiny as all other projects, and I
intend to treat this project the same as all other projects.
PREPARED STATEMENT
It's clear to me, and it should be clear to all of us, that
investments in our water infrastructure strengthen our economy
and, thereby, directly contribute to our homeland security. So
I intend to work with Senator Domenici, the full committee
chairman, Senator Stevens, and Senator Byrd, to try to find
additional resources to more adequately fund our water
infrastructure.
Thank you very much for your patience, and especially you,
Senator Burns.
[The information follows:]
Prepared Statement of Senator Harry Reid
Good morning.
I am glad to be here today with my good friend, Senator Domenici
and his staff as we work towards preparing our annual Energy and Water
spending package.
These hearings are intended to help us prepare our funding
proposals. We depend on the open exchange of information that we
receive in these hearings to explain and elaborate on the President's
budget proposals.
However, most importantly, we will develop our appropriations bill
by taking into account the needs of our Members and the American
people.
I want to thank our witnesses from the Bureau of Reclamation and
the U.S. Army Corps of Engineers for appearing before us today. I know
that it is both awkward and difficult for you to defend the budget
proposals presented by the administration in this year's budget.
For fiscal year 2005, the administration has proposed large
spending increases for our Nation's defense and our homeland security,
and yet the budget proposals for the Bureau of Reclamation and the Army
Corps are not only flat, they are counterproductive and will, if
enacted, cost the American people more to shut projects down than will
be available to move the few remaining.
I find this very troubling.
Homeland security has rightly been a priority within this
administration. However, I do not believe that we can secure the
homeland without a strong economy.
The water resource projects funded in this bill are a significant
part of our national economy and provide important and positive
economic benefits.
The Chief of Engineers cannot even recommend a project to this
administration or this Congress unless the analysis shows that positive
net economic benefits will accrue to the national economy. The same is
true for the Commissioner of the Bureau of Reclamation.
Therefore, the only conclusion that I can draw from this budget is
that the administration places our economic security in a different
category than our homeland security.
I do not share this shortsighted view. Water resource
infrastructure benefits all of us.
I wonder how many of us realize that the typical household only
uses 50 to 85 gallons of water a day. However, it takes nearly 1,200
gallons of water per person per day to meet the needs of farmers,
factories, electrical utilities, and the many other organizations that
make it possible for us to have food on our table, a computer on our
desk and power for our homes.
During their 100-year history, the Bureau of Reclamation has had a
major impact on life in the west. Without Bureau water projects, the
western population and economy could not be sustained, including my
home State of Nevada.
Bureau of Reclamation and Army Corps water storage projects have a
total capacity of nearly 575 million acre feet of storage and provide
municipal and industrial water supply to millions of our citizens. The
water supply infrastructure provided by the Bureau and the Army Corps
in the West are the life blood of the communities they serve. Without
these infrastructure investments the tremendous population growth in
our western States would not have been possible. Further, the
tremendous bounty of our western farms could not be achieved without
these projects.
Today the Bureau is having a major impact on many of our citizens'
lives in the Great Plains by providing clean drinking water where many
have never had it before. In many of our western States, the water that
comes into people's homes is the color of a strong cup of tea. When
people try to wash their clothes, it stains them. Sinks, tubs and
toilets are all stained by this water.
The Bureau's rural water programs have been a godsend to these
communities, however, funding for these programs needs to be increased.
I am glad that for fiscal year 2005 the administration seems to
recognize the worth of these programs after the devastating cuts made
in fiscal year 2004 that Congress had to restore.
Reclaimed water projects in the west have allowed many western
States to stretch their precious water resources. My own State of
Nevada heavily uses recycled water for the golf courses and water
features on the Las Vegas Strip and for other uses.
Without recycled water, Nevada would find it very difficult to live
within its 300,000 acre-foot allocation of the Colorado River.
Yet, funding for these vital projects was again severely cut this
year. Perhaps the people preparing this budget don't realize it, but
the Federal limit for most of these projects is relatively low.
However, the Federal dollars when leveraged with the State and local
dollars make these projects viable.
The Bureau of Reclamation and the Army Corps of Engineers provide
about 35 percent of the Nation's hydroelectric power which amounts to
nearly 5 percent of the U.S. total electric capacity. Four out of five
homes in the northwest are powered by hydroelectric power.
As always, the administration's budget request contains a huge
number of budget gimmicks designed to mask the huge deficits they are
running up. The administration has again recycled a hydropower gimmick
for the Army Corps and expanded it to include the Bureau of
Reclamation. The budget proposal includes the assumption that the Power
Marketing Administrations will contribute $30 million towards operation
and maintenance of Bureau of Reclamation hydropower facilities and $150
million towards Army Corps facilities.
Enabling legislation for these proposals has not been enacted.
Absent this legislation, we have two choices. We could ignore the
proposal and not fund this portion of Bureau and Army Corps hydropower.
This would have extreme impacts on Federal hydropower production.
The other option is for us to appropriate the necessary funds. That
is, to take funding away from other priorities to fund this unfunded
necessary task due to budget gimmicks. This is the third straight year
that the administration has included this proposal for the Army Corps
and enabling legislation has still not been enacted. One would think we
were sending the appropriate message on this proposal, but obviously
someone does not understand it.
Forty-one States are served by Army Corps ports and waterways.
These ports and waterways provide an integrated, efficient and safe
system for moving bulk cargos. Two-point-three billion tons of cargo
are moved though these ports and waterways. The value of this cargo to
the national economy approaches $700 billion. Navigable waterways
generate over 13 million jobs to the national economy and nearly $150
billion in Federal taxes.
The budget proposal again cuts operation and maintenance funding to
``low use'' waterways and ports. This is akin to not funding snow
removal on secondary streets while completely clearing the interstate
highway system. You end up with a great system with no way to fully
utilize it.
The same is true of ``low use'' waterways and ports and their
relationship to our deepwater harbors. The inland waterway system
operates as an integrated unit. Not funding a portion of it drags down
other parts of the system.
I am gratified to see that the budget proposal adequately funds the
New York and New Jersey Harbor project as well as the Olmstead Lock and
Dam project on the Ohio River, however, it does this at the expense of
all of the other navigation projects. Only these two chosen projects
will be able to initiate any new work for fiscal year 2005. All of the
projects will have to limp by on the remaining funding.
Average annual damages prevented by Army Corps flood control
projects exceed $20 billion. From 1928-2000, cumulative flood damages
prevented when adjusted for inflation were $709 billion for an
investment of $122 billion, adjusted for inflation. That is nearly a 6
to 1 return on this infrastructure investment.
It is hard to find many things in the Federal budget that have a 6
to 1 rate of return, and yet this area has been severely underfunded in
the budget. Again, only the Sims Bayou, Houston, Texas, project and the
West Bank and Vicinity, New Orleans, project were adequately funded.
The Army Corps will likely have to juggle the funding shortfalls for
the remaining projects to keep work going on them.
The President's budget proposal has also included another ``new''
beach policy, his third in 3 years. This is the worst one yet. I have
to believe that someone in the bowels of the administration that comes
up with these policies is just not thinking them through.
Beaches are the leading tourist destination in the United States.
California beaches alone receive nearly 600 million tourist visits
annually. This is more tourist visits than to all of the lands
controlled by the National Park Service and the Bureau of Land
Management combined.
Beach tourists contribute $260 billion to the U.S. economy and $60
billion in Federal taxes.
And yet, for fiscal year 2005, the administration has decided that
the Federal Government should only participate in the initial
construction of beach restoration projects and that the local interests
should be responsible for all subsequent beach renourishments needed
over the 50 year life of the project.
This proposal tells our citizens, that the government will provide
your initial storm damage protection, but after we finish, you're on
your own!
The impacts of this beach policy resonate throughout the fiscal
year 2005 budget and are impacting execution of funding provided in
fiscal year 2004.
Both the Army Corps and the Bureau contribute to our Nation's
environmental protection. Over $1 billion, or about 25 percent, of the
Army Corps' fiscal year 2004 appropriations was targeted for
environmental activities. Reclamation expended a similar percentage of
their budget on these important activities.
One final note about the President's proposal that I would be
remiss if I did not mention is the Brazos Island Harbor, Texas,
project. In fiscal year 2004, first year funding was provided to
determine the Federal interest.
The fiscal year 2005 budget proposal has unilaterally determined
that not only is the project in the Federal interest, it should be
funded for construction, even though a feasibility study has not been
conducted nor has the project been authorized for construction. Five
hundred thousand dollars is provided in the request to conduct a
feasibility study and $9.5 million was provided to construct this
unauthorized project. I cannot remember a time when funding was
provided for these two phases at the same time.
This is astounding in light of the fact that the administration is
holding up funding for numerous projects that have been fully vetted by
the Army Corps and the Assistant Secretary of the Army for Civil Works.
Yet the administration has exempted this project not only from the
entire review system established by the administration, but also from
being authorized by Congress for construction.
I believe this project should face the same scrutiny as all of the
other projects in the President's proposal and intend to treat this
project the same as all other projects as we prepare our Bill.
It is clear to me and should be clear to all of us that investments
in our water infrastructure strengthen our economy and thereby directly
contribute to our homeland security.
I intend to work with Chairman Domenici, Chairman Stevens, and
Ranking Member Byrd to try to find additional resources to more
adequately fund our water infrastructure.
Thank you Senator Domenici.
Senator Domenici. Thank you very much, Senator Reid.
Let me ask the other Senators if they desire to speak. I'm
more than willing to let them. This is a very, very serious
budget.
Senator Stevens and Senator Cochran were not here when I
said this, and I will not repeat my remarks. I will just tell
you that on both budgets, they are slim; but, in addition, in
each of the two budgets, the OMB assumed that we would do
something that we can't do. Power Marketing is assumed as
something that will be done that will cause us to raise money.
Since that won't happen, the net effect is that we're $180
million short in the Corps and the Bureau combined, $180
million. That's a lot of money, when you figure that that's
below the line, less than what we would expect, based on last
year's budget. I don't know how we're going to do it, but I
just want you to know that.
Now, who should go next, based----
Senator Stevens. Senator, could I just make a comment?
Senator Domenici. Absolutely.
STATEMENT OF SENATOR TED STEVENS
Senator Stevens. I came by to tell the committee that I was
privileged to attend a meeting about Brazil, and I was
staggered to find that Brazil had changed its dependence on
foreign oil, imported oil, from 70 percent to 17 percent by
reassessing all its hydroelectric potential and by having a
crash program of investment in hydro potential.
I would like to ask that both of the panels--Mr. Keys and
the Corps--deliver to the committee past studies of the
hydroelectric potential of the United States. And I don't care
where it is. If those lands have--some of these lands have been
withdrawn now in order to prevent the hydro potential, I think
we should have a complete review of the hydro potential. We're
in a period of escalating gasoline prices, and we face, soon,
escalation in even the price of natural gas because of our
increased dependence upon imported natural gas.
I do think it's one of our duties now to reassess all the
alternative forms of energy that are available, and let the
American public decide whether some of these hydroelectric
projects should be constructed now, and that we should shift to
a period of investment in future hydro potential.
I would also ask your consent, your agreement, to let me
place in the record the answers to a series of questions that
General Flowers was kind enough to deliver to me. We did have a
visit some time ago, before the recess, and I asked him some
specific questions about Alaska, and he has delivered the
answers to me, and I'd like those printed in the record.
Thank you very much.
Senator Domenici. Senator, they will be made a part of the
record.
And we will consider your two questions as if they were
asked. And you understand, Commissioner, that that's been asked
of you? Is General Flowers here yet?
Senator Stevens. Well, I have the questions and answers
right here.
Senator Domenici. All right.
Senator Stevens. I can put them in the record, if that's
all right.
Senator Domenici. Those are Alaska.
Senator Stevens. They're Alaska Corps of Engineers project
questions.
Senator Domenici. Yes, but with reference to your request
that there be an assessment of potential water projects, in
terms of hydro----
Senator Stevens. Well, I just want--they've done already--I
know they did--they did some of them when I was down there, in
the 1950's, but I think they updated those later.
Senator Domenici. All right.
Senator Stevens. All right?
Senator Domenici. We'll get that.
Senator Stevens. That was in the last century, Mr.
President.
Senator Domenici. Yes, I understand.
I mean, you are very viable. I don't know how many more
centuries you'll be here, but----
You will outlive us.
I want to comment, with reference to your last observation
regarding hydro, that the Senator sitting by you, right there,
Senator Larry Craig, has been working on hydro, the permitting
process, which has been very cumbersome. He's been working on,
in fact, the energy bill, had a tremendous reform that would
have moved projects, of the type the Senator from Alaska's
talking about, in a much more expedited--and yet safe, from the
standpoint of the environment. It got through. If we don't do
the energy bill, who knows where it will go, but we aren't
going to give up on modernizing the permitting system.
Senator Stevens. Well, Senator, God willing, if I'm able to
so, I intend to invite Members of the Full Committee to take a
trip to Brazil after the election and see what they have done.
This is a staggering concept of reversing a total dependence--
--
Senator Domenici. Terrific.
Senator Stevens [continuing]. On foreign oil and replacing
it with alternative forms of energy in your own country.
Senator Domenici. Well, Senator, I just want, before you
leave, to reiterate to you, when you start allocating the
money--and I know you have an insurmountable problem, but you
should know that you can't use the administration numbers as if
we can get the job done with them, because, in each case, there
is a very big amount of money that is assumed in that budget
that will not occur. In each case, they assume things like the
Power Marketing, which is a big one--and what's the other one?
Yucca Mountain piece that they assume, and other things.
Now, Senators who are here--Senator Burns, would you like
to comment?
STATEMENT OF SENATOR CONRAD BURNS
Senator Burns. Thank you, Mr. Chairman, I just have one
comment. When you look at this budget, knowing the projects
we've got, I think we ought to try to do what we're supposed to
do, and focus on our highest priorities. Now, I guess that's
pretty easy to say when you come from a watershed State, where
we're hurting a little bit in some of our irrigation districts,
and we need some help.
So, I just want to make sure we keep this in mind when we
set the priorities on what we're about and what we're supposed
to be doing. In our part of the country food production is very
important, and we've got a big problem with the Milk River that
we'd like to start addressing. This budget will not get
everything done, but we want to work with you and do everything
we can.
There are some private entities that are willing to take
over irrigation districts. Willing to take over. They've
already paid them off. And yet we come to the government, and
we say, ``Well, now, we'd like to turn these back and--turn
them over to private entities, where they paid money in, where
they pay for the water, they pay for everything, and willing to
do it,'' and yet we run into a stone wall about getting these
irrigation systems moved into private entities because--they
just don't want to release it because they're afraid they'll
lose their job or something. I don't know what it is. But
anytime that you've got the private sector wanting to take over
something that's costing us money, and they're willing to
assume the responsibilities of it, I think we ought to look
very closely at that and how it impacts on our budget, year in
and year out.
So I've got another meeting to go to now, but I just want
to thank the Bureau of Rec. and also the Corps of Engineers.
We've had a great year in Montana, and we've worked together on
some projects that are really going to make a positive impact.
But we also have some very serious problems that we have to
look at and come up with some imaginative ways to deal with
those problems. And I think we can do this in a way that
benefits both the people who live there and also the American
taxpayer.
Thank you, Mr. Chairman.
Senator Domenici. Thank you.
Senator Cochran.
STATEMENT OF SENATOR THAD COCHRAN
Senator Cochran. Mr. Chairman, thank you very much. I have
a statement specifically dealing with the budget request for
the Corps of Engineers, and I ask unanimous consent that it be
printed in the record.
Senator Domenici. It'll be made part of the record.
[The statement follows:]
Prepared Statement of Senator Thad Cochran
Mr. Chairman, I join you in welcoming the witnesses to this
hearing.
I appreciate the good work the Corps of Engineers does in the State
of Mississippi. I do, however, have some serious concerns with the
Corps' ability to continue to carry out its responsibilities due to
declining levels of funding.
The Corps' ability to accomplish their mission is becoming more
than a serious challenge. I am disappointed in the budget request for
the Civil Works program.
More funding would provide greater economic and environmental
benefits, as well as improved safety and security for our Nation's
citizens.
Locks and dams that allow for more efficient and environmentally
responsible movement of goods on our waterways continue to deteriorate,
and the Corps continues to struggle to find the resources to dredge
waterways that carry commercial cargo such as the Mississippi and Ohio
Rivers, not to mention many other smaller waterways. The maintenance
backlog also continues to grow and become more serious.
In addition, we are not adequately constructing or maintaining
important flood control structures that are needed in many areas.
I appreciate the efforts by General Flowers to meet the demands
being made on the Corps, and I congratulate him on his exemplary
service as Chief of Engineers. Since he's retiring later this year, it
may be the last time he appears before the subcommittee. I congratulate
him on his outstanding service to the country.
Senator Domenici. Is that it?
Senator Cochran. Yeah.
Senator Domenici. All right.
Senator Dorgan.
STATEMENT OF SENATOR BYRON L. DORGAN
Senator Dorgan. Mr. Chairman, let me be brief, but I have
another Appropriations subcommittee hearing going on just
around the corner on this floor, and I'm involved in that, as
well, so I won't be able to listen to all of the testimony. But
I wanted to underscore the points you made. Water policy is
critically important, and funding these represent not just
ordinary expenditures, they represent good investments in the
future that provide, in most cases, very high returns.
And I wanted to say to Commissioner Keys that last
Thanksgiving, as you know, the people of Fort Yates, on the
Indian reservation, lost their water because of a problem with
the Missouri River intake. And for several days, these folks,
8,000 of them, had no water at all. And, Mr. Chairman, I should
just tell you that the employees of the Bureau were down there
working through the Thanksgiving holiday. They did a remarkable
job. And your employees deserve a real big, hearty thank you.
They worked around the clock during the Thanksgiving holiday,
and they got water restored.
But this relates to the need for a permanent solution down
there. It relates to the management of the Missouri River by
the Corps of Engineers. And it relates to bigger and broader
issues that we have to address. We also need to deal with the
rural water needs. Commissioner Keys, you were with us when we
broke ground for the NAWS Project, which, by all accounts, is a
great project, known as great to everyone except the Office of
Management and Budget, apparently. Despite the fact that they
don't allege there's anything wrong with it; they just put it
as part of this PART process and don't fund it well enough. And
then we also need to continue the flood-control project
underway at Grand Forks, and complete that.
So this subcommittee has an enormous charge, and all of it
is critically important. Mr. Chairman, I look forward to
working with you and other Members of the subcommittee to find
ways to meet our obligations and to work with the Corps and the
Bureau to get done what we need done. We need the Red River
Valley studies in Eastern North Dakota. I won't recite my
displeasure with the Corps and the master-manual rewrite right
now, but----
Senator Domenici. I understand.
PREPARED STATEMENT
Senator Dorgan. I'll do that later.
But thank you very much. And let me say, again, the part of
the Chairman's statement and the part of Senator Reid's
statement I heard is right on point. These are critically
needed investments, and we need to find a way to do them.
[The statement follows:]
Prepared Statement of Senator Byron L. Dorgan
Assistant Secretary Woodley, Mr. Keys and General Flowers, I
welcome you to our subcommittee, and I thank you for your testimony. In
North Dakota, we have enormous water challenges and depend greatly on
the assistance of the Corps of Engineers and the Bureau of Reclamation
for flood control, irrigation, and municipal, rural and industrial
water needs. The President's budget request for fiscal year 2005 does
not give your agencies the funding you need to accomplish the great
challenges ahead of you in my State and throughout the Nation.
I am very concerned that the President's fiscal year 2005 budget
submission for water projects falls dramatically short of the
investment that will be needed. The President proposes cutting nearly
$356 million from the Army Corps of Engineers and $28 million from the
Bureau of Reclamation's Water and Related Resources program. These cuts
are coming at a time when the Federal Drought Monitor shows that almost
every western State, including North Dakota, remains in drought. In
North Dakota, low lake levels at Lake Sakakawea and Lake Oahe, two
major lakes on the Missouri River created by the Federal Government in
an effort to eliminate annual flooding of river lowlands, are causing
extreme problems for communities that depend on these lakes for their
water supply. We had a crisis earlier this year at Standing Rock Indian
Reservation when the community of Ft. Yates lost water due to the low
lake levels on Lake Oahe. To respond to this emergency, the Bureau had
to divert already limited municipal, rural and industrial funds
designated for other tribal projects. Other communities along Lake
Sakakawea and Lake Oahe are in danger of suffering the same fate.
Already, economies dependent on recreational uses of the lake have been
devastated due to low lake levels and now the water supplies are also
in danger.
I blame this on the Corps' mismanagement of the Missouri River. The
Corps had the opportunity to change their management practices on the
river to practices that would have produced a net benefit for the
entire country. Instead, the Corps issued its revised Master Manual
last month which simply kept the status quo.
Needless to say, I am unhappy with this so called ``revision.'' In
the President's Fiscal Year 2005 Budget Request for the Army Corps he
stated, ``A concerted effort by this Administration and the Congress is
needed to ensure that the ongoing and future efforts of the Corps are
environmentally sustainable, economically responsible, and fiscally
sound. Achieving this goal will require a transformation in cultural
attitudes.'' The President is correct in his assumption that attitudes
must change in order for us to reap the economic benefits from water
projects such as the Missouri River Basin.
The President's Budget Request further states, ``In developing its
budget proposal for 2005, the Corps assessed the relative merits of
each potential investment in each of its program areas. This approach
represents an important step towards the President's goal of making
fiscally responsible funding decisions based more on results and less
on factors such as `what did they get last year.' This is the essence
of the Corps' performance-based budget. The Administration funds
activities that will yield the greatest net benefit to society per
dollar invested.''
I wish it could be said that the Corps actually took this type of
approach when revising the Master Manual. Studies show that every
dollar the public spends to operate and maintain the Missouri River
only generates 40.6 cents in transportation savings to barge companies,
export elevators, importers and grain producers. It has been further
shown that the actual O&M expenses for the Missouri River ($7.1
million) exceed the net benefits provided by the barging industry ($6.9
million). This, to me, seems like a waste of taxpayer funding. (There
are only three barging companies currently operating on the MO River).
If the administration is serious in its efforts to focus funding on
those activities that will yield the greatest net benefit to society as
a whole, then it would seem that reforming the management practices on
the Missouri River would be an initiative the Corps would take
seriously and address in a manner more consistent with the
administration's directive.
I hope the ``revised'' Master Manual is something the Corps will
continue to look at and is not something they feel no longer needs to
be reevaluated. I believe the Corps should do more than simply reprint
the 1979 Master Manual. The people of the Missouri River Basin deserve
and expect more. The towns and communities that have grown dependent on
the reservoirs and river need to know what they can expect from the
Federal Government in the future. They need to know that the government
is more concerned with the safety and welfare of the Nation, rather
than simply a few downstream barge companies. We need to reevaluate and
set the goals for our future use on the river and judging from the
past, the status quo is no longer an option.
As you know, my top priority within the Bureau of Reclamation's
budget is adequate funding for the Garrison project. A total of 155,000
acres of Ft. Berthold Indian Reservation land was taken for building
the second-largest earth filled dam in America, the Garrison Dam-Lake
Sakakawea project. The water divided the Reservation down the middle.
The Federal Government owes this tribe and others in North Dakota for
its sacrifice for the Nation. We have promised, in an authorization
bill, to provide $200 million for Indian municipal, rural and
industrial water needs and $200 million for State MR&I. But this
administration's budget once again fails to come through on that
promise recommending only recommending $22.1 million for the Garrison
project which does not even maintain the historic funding level,
ignores the needs of the current program and does not keep up with the
price increases expected in the major programs as delays occur. This
year, the budget only provides about $5.485 million for rural water
projects--half for the State program which includes the Northwest Area
Supply (NAWS) and the other half for Indian programs. This is almost
$45 million short of what North Dakota needs for Indian and State MR&I.
We simply must do better or the costs of this project are going to
overwhelm us in the outgoing years. If the current funding trend, a
disaster will occur in only a few years when an additional $30 million
will be needed for the Red River Valley program.
I am also very concerned about the impact of the President's budget
recommendation for the Grand Forks/East Grand Forks Flood Control
Project. This year, the President only recommends $31 million for this
project which is nearly $24 million short of the amount that will be
needed to bring the project to substantial completion. We are so close
to providing this community permanent flood control protection and I
just don't understand why the administration would not choose to finish
the project this year. A wet spring recently caused severe flooding in
areas just west of Grand Forks and we are once again reminded that the
community is not safe from another flood until this permanent
protection project is finished. This subcommittee has invested so much
into that project and I will be asking for my colleagues for their help
in getting this project substantially completed this year before FEMA
remaps the area only to have to spend the money to do it again after
the project is completed.
As you'll see, I think we have a lot of challenges in front of us
but I thank you for appearing before us today.
Senator Domenici. Thank you very much.
Senator Larry Craig.
STATEMENT OF SENATOR LARRY E. CRAIG
Senator Craig. Thank you, Mr. Chairman. I'll be brief. I
got here late, but I do want to make a couple of opening
comments because it's an opportunity to have John before us to
talk about issues that are obviously critical.
And, let's see, Commissioner, have you gone to Idaho yet?
When are you going?
Commissioner Keys. I'm sorry, sir?
Senator Craig. I thought you were going to go to Idaho this
coming week.
Commissioner Keys. I am there the 6th and 7th of May to----
Senator Craig. Okay.
Commissioner Keys [continuing]. Work with them on the
groundwater issue.
Senator Craig. Right. I knew that you were--that your trip
out there was timely in relation to what's happening in Idaho,
but also what's happening in the West, Mr. Chairman.
I just, during this Easter break, spent time with the Twin
Falls Irrigation Company, the Twin Falls Canal Company. For the
record, Mr. Chairman, that is one of the largest irrigation
companies in the State of Idaho, that irrigates all--from, you
know, Bureau of Rec. development programs, the whole
development of the central/mid Snake River Basin area.
Here is what I concluded from them, and here is what we
have to conclude in the West today. The West is drying up, and
it's getting progressively drier. And it is now extended over a
near 10-year period, Mr. Chairman. Lake Meade is--or Lake
Powell is at an all-time low since it was filled. Lake Meade is
down. There is a guesstimate now, and the figures would show
the progressive decline in the flow of the Snake River is
upwards of 500,000 acre feet now, on an annualized basis. Every
chart I see over the last decade shows a decline in overall
springs and spring recharge. You're going out to talk about the
need to try to recharge the Snake River Plain Aquifer and the
Federal impediments that may or may not exist there as it
relates to doing that.
It quit raining and snowing in Idaho the 1st of March after
what appeared to be a very good wet winter, and it hasn't
snowed or rained since.
Senator Domenici. What was that date?
Senator Craig. First of March. The snow is evaporating or
going into the ground, our rivers are showing little to no
spring surge, and many of our reservoirs are nearly empty. The
great American Falls Reservoir irrigation system, that
reservoir will not spill this year. It appears that it may get
only to 70 percent capacity.
The West is in deep water trouble. It's also an area where
everyone else wants to share water that was once dedicated for
another purposes, and so the conflicts are growing, whether it
is fish, or whether it is human consumption. It also is a
segment of the region that is growing the fastest of any in the
United States. Whether it's Idaho and Idaho's growth, or New
Mexico, or Arizona, or Nevada, all of it's growing, and growing
faster than any segment. And yet the one resource that will
dictate its growth or dictate how people live is the resource
of water. And, frankly, we're doing nothing to add to the
overall capacity of the systems.
We started dewatering the State of Idaho a decade ago, when
we decided that it was important that we leave some water in
the system for purposes of flush for fish, and we haven't added
any upstream capacity. We've brought more water in that was
once dedicated for something else, which meant water was
leaving the ground to go into the system.
But it is an alarming figure. And I have a variety of
charts here in front of me, but probably this is the most
significant one. That's a decade of flow in the Snake River
system, all of it in decline. Used to be we had 5- to 6-year
cycles. It's very difficult to find a decade or more of
progressive decline in overall flows.
I say that today--Mr. Chairman, you've experienced it in
New Mexico, throughout the West. The arid, high-desert West is
getting drier. And the one agency that can play a role in
helping is your agency. And the problem we have today is that
the idea--and the chairman of the full committee talked about
hydro projects and putting dams in rivers--oh, how dare we even
think about that idea again--but there is capacity in the
systems off main stem, in areas that would have little
environmental impact, to increase the overall abundance of
water in an arid West, and much of that could be dedicated to
in-stream flow to increase water quality within the main-stem
systems. And yet even some of our environmental friends will
ignore the obvious, because they have dedicated themselves to
being anti- and not pro-environment in many instances.
That's a conflict we're into, but it was brought to reality
this week, this past week, when I sat down with Idaho's largest
irrigation company and saw their dramatic declines in overall
resource. And they're now rushed to manage, rushed to conserve,
as we grow increasingly drier in the West.
Thank you, Mr. Chairman.
Senator Domenici. Thank you very much.
Now, when you say the Bureau of Reclamation can help with
this, let me say publicly that this gentleman has tried
mightily, but the truth of the matter is they've made some
mistakes in the past year. The biggest one is the Animas-La
Plata, which turns out to be Animas-La Plata Lite. And even
with Animas-La Plata Lite, they have messed up the estimates
terribly. They promise me that they're going to fix it, and
they're going to come back with estimates that are right, and
spread it out a little bit so it doesn't beat our budget up.
How could we pay for it with what we've got? I mean, if they
end up with 40 to 50 million dollars that they need, they can't
get it. We can't pay for projects right now that have, you
know, been going for a long, long time.
My last remarks are directed at OMB. I honestly don't
believe that, in considering the budget, that they consider any
of the things we've been talking about here. It's pure numbers.
You know, pure numbers. Can you imagine to come up and say
we've got a new water program he put in it for the West, and we
put $20 million in it? You know, $20 million? We need a
revolving fund of a billion dollars, with grants and matching
funds. Anybody that sees that--sees what's going on out there
knows that.
Now, enough of us. Let's hear the Commissioner.
Proceed.
SUMMARY STATEMENT OF COMMISSIONER KEYS
Commissioner Keys. Mr. Chairman, good morning. It's my
absolute pleasure to be here today to talk about the
President's fiscal year 2000 budget request for the Bureau of
Reclamation.
We do appreciate all the support that we've had from the
committee, and certainly look forward to working with you on
Bureau projects in the future.
I have a statement for the record that has been sent
forward that I would certainly appreciate your including as
part of the record.
Senator Domenici. It will be made part of the record.
Commissioner Keys. Assistant Secretary Bennett Raley,
Assistant Secretary of Water and Science, could not be here
today, and he has also submitted a statement that we would
appreciate being put in the record.
Senator Domenici. It will be made part of the record.
Commissioner Keys. And I have with me Ron Johnston, who is
here to talk, if you would like, about the Central Utah Project
Completion Act, and I have Bob Wolf and Pam Hayes, our budget
folks, with us if we need further information from them.
Mr. Chairman, before I get to the budget, we would like to
update you on water-supply situation in the Western United
States. This year, unfortunately, as we've talked about, the
drought remains with us and--put the green one up first, the
big one----
Senator Domenici. I didn't read your testimony beforehand,
I'm sorry, Mr. Commissioner, but thank goodness you're covering
this. Please proceed.
Commissioner Keys. Mr. Chairman, you talked about growth in
the West, and this first chart shows exactly what you were
talking about. In the decade between 1990 and 2000, State of
Nevada grew by 60 percent, State of Arizona by 40 percent,
Colorado and Idaho by 30 percent, New Mexico by 20 percent.
That, in itself, tells you some of the crisis and conflict that
we face in the Western United States.
The next chart shows that annual precipitation that we have
depended on for a number of years, and certainly you can see
that in the Western United States it ranges somewhere from 3
inches up to an average of less than 20 inches in most places.
Now, if you consider the drought that we're in, it almost
looks like a bulls-eye on the Western United States. In the
year 2003, there was only one State out of the 17 that
Reclamation works with that experienced normal or above
precipitation; that was California. This year, we're started
out, and there's even some dry in Southern California that was
not there last year. We anticipate it being a dry year, and
certainly we're trying to manage toward that.
Now, one of the efforts that we have entered into in trying
to look at the drought, look at the demands for water and the
conflict and crisis that we could get into is the Water 2025
Program. This is a chart that we put together as part of that
to show those hot-spots in the Western United States. Hot-
spots, meaning that they would have water requirements from
exploding populations, from demands from the Endangered Species
Act, demands from other fish and wildlife, from new industry,
from new requirements that we didn't even know about. These are
the hot-spots that we are trying to deal with in the Western
United States.
Now, with that said, I would go to the information on the
fiscal year 2005 budget. The overall Reclamation budget totals
$956 million in current authority and is offset by
discretionary receipts from the Central Valley Project
Restoration Fund of $46 million, and hydropower direct
financing of $30 million. While the request is partially offset
by underfinancing of $36 million, I'm concerned that increasing
above this amount, as has occurred in the recent past, may
adversely affect our ability to address activities at our aging
infrastructure. And I look forward to working with the
committee to identify ways to address this critical area.
Our 2005 budget request continues the President's
commitment----
Yes, sir?
Senator Domenici. Commissioner, did that last statement,
that you want to work with us on these critical areas, were
those presented to OMB?
Commissioner Keys. Mr. Chairman, the under-financing is a
figure that we work with the committee directly on every year.
We propose a level of under-financing that we think makes good
business sense, and then you work with us to see what it should
be. In the past 2 years, it's actually been quite a bit more
than we had recommended.
Senator Domenici. Well, let me tell you, that's a very,
very risky business. When you have a budget that's as tight as
this budget, everywhere--you know, we don't know how we're
going to do that, because every year the chairman of the
committee that makes the allocations has mercy on us and gives
us a little bit of allocation over an amount. But what if they
don't do it this year? Then, you know, you better be prepared
to tell us what can we cut or hold from your ongoing projects
that we can use to keep this--you know, the parts that are
desperate, to keep them alive.
I don't know how. I've looked at it, and I don't know where
the heck we're going to--I don't know where we're going to get
the money.
Commissioner Keys. Mr. Chairman, we certainly will work
with you every step of the way on that.
Senator Domenici. Good.
Commissioner Keys. Our fiscal year 2000 continues the
President's commitment to a more citizen-centered government
founded on the principle of getting results rather than
creating process, as well as the Secretary's four C's,
``conservation through consultation, cooperation, and
communication.''
The request also continues to emphasize the operation and
maintenance of Reclamation facilities in a safe, efficient,
economic, and reliable manner while sustaining the health and
integrity of ecosystems that address the water needs of a
growing population.
Mr. Chairman, the highlights of our budget are--the Water
2025 Program in 2005 requests $20 million. That request would
continue Secretary Norton's 2025 Initiative, building off of
the fiscal year 2004 Western Water Initiative. Water 2025 is a
high priority for Reclamation, focusing resources, both
financial and technical, on areas of the West where conflict
and crisis over water either exist now or can be predicted and
prevented using the tools to deal with the realities outlined
in the initiative.
Water 2025 provides Federal seed money in the form of
competitive grants with performance measures to empower local
citizens and communities to do what the government cannot do
alone. Our fiscal year 2004 budget included $4 million in the
Western Water Initiative for these competitive grants. This
request is about $20 million for those competitive grants.
In the Klamath Project, in Oregon and California, we're
asking for $25 million. The fiscal year 2005 request continues
and increases funding for our efforts in the Klamath Basin that
will improve water supplies to meet competing demands for water
in the Basin and ensure continued delivery of water to this
project. Coupled with efforts from other Federal agencies,
Interior is proposing over $67 million in fiscal year 2005 to
keep its commitment to help restore the Basin, provide water
necessary to meet the needs of the farmers.
Now, on the Middle Rio Grande Project, we're asking for $18
million. The fiscal year 2005 request continues funding in
support of the Endangered Species Collaborative Program. In
addition, the request continues funding for requiring
supplemental water, doing the necessary channel maintenance,
and government-to-government consultation with Pueblos and
tribes. The funding will continue efforts that support the
protection and contribute to the recovery of the Rio Grande
silvery minnow and the southwestern willow flycatcher.
One effort that----
Senator Domenici. How much less is that than the previous
year?
Commissioner Keys. Mr. Chairman, our request for fiscal
year 2005 is $1 million more than it was in fiscal year 2004.
Senator Domenici. We don't have that number. We ought to
consult on that. We have a number that it's $14 million less.
But, anyway----
Commissioner Keys. Mr. Chairman, we'd certainly work with
you on that number.
Senator Domenici. Okay.
Commissioner Keys. On the Animas-La Plata Project in
Colorado and New Mexico, we're requesting $52 million. The
Animas-La Plata Project is currently under construction and
resolves, through authorizing legislation passed by the
Congress in 2000, longstanding Indian water-right claims in the
Basin.
In response to your comments before, I can assure you that
Reclamation has made changes in the personnel on the project
and the procedures that we are using to complete the project as
it was designed, and to ensure that we don't run into those
problems on other projects throughout the Western United
States. Those changes have been made. We are continuing to look
at the organization and our engineering expertise to be sure
that it is there for another century to come.
On site security, we have asked for $43 million in fiscal
year 2005. The funding request is necessary to cover the cost
of site-security activities, including surveillance and law
enforcement, antiterrorism activities, including physical,
information, and personnel security, and threat management, and
physical emergency security upgrades, with the primary focus on
our national critical infrastructure facilities.
I do want to call your attention to a change that will be
occurring in how we address the cost of site-security
activities. Beginning in fiscal year 2005, annual costs
associated with activities for guarding our facilities will be
treated as project operation and maintenance cost, subject to
reimbursibility based upon project cost allocations. You'll be
hearing more on this approach in the future.
Our Safety of Dams Program, we ask for $64 million in
fiscal year 2005. As our infrastructure ages, we must direct
increasing resources toward upgrading and maintaining our
facilities through the use of science and new technologies to
ensure the continued reliability so important to our western
stakeholders. The fiscal year 2005 request is being made to
reduce risks to public safety, particularly those identified as
having deficiencies.
On the Rural Water Program, we have asked for $67.5
million. The fiscal year 2005 funding for rural water projects
emphasizes a commitment to completing ongoing municipal, rural,
and industrial systems. This one, in fact, would complete the
Mid-Dakota project in South Dakota that we've been working on.
Funding is included for the Mni Wiconi, Mid-Dakota, Garrison,
Lewis and Clark, and Perkins County projects.
The administration will convene an interagency group to
review programs of all Federal agencies with rural water
infrastructure needs. We just, about 3 weeks ago, working with
your office and Mr. Bingaman, submitted a new bill for which
you have sponsored, Senate Bill 2218, the Reclamation Rural
Water Act of 2004. That, we think, will give us a good
structured approach to addressing rural water needs in the
future, and give us a better way to handle them than we have
been working with in the past.
In talking about the hydropower direct financing, that's
the $30-million figure that we had talked about before. The
fiscal year 2005 budget proposes to finance the cost of
operation and maintenance of certain Reclamation hydropower
facilities directly from receipts collected by the Western Area
Power Administration. Each year, Western Area Power
Administration would transfer an agreed-upon amount to the
Bureau of Reclamation for deposit in its ``water and related
resources'' account. A direct-funding arrangement already is in
place with the Bonneville Power Administration.
PREPARED STATEMENTS
Mr. Chairman, in conclusion, I want to strongly reiterate
that the fiscal year 2005 budget request demonstrates
Reclamation's commitment to meeting the water and power needs
of the West in a fiscally responsible manner. This budget
continues Reclamation's commitment to sound water-resources
management and the delivery and management of those valuable
resources. Our goals for 2005 and accomplishments for fiscal
year 2003 are described in my official statement, and I'd be
glad to provide more detail if you would like.
That concludes my prepared remarks, and I would certainly
stand for any questions that you might have today.
[The statements follow:]
Prepared Statement of John W. Keys, III
Thank you, Mr. Chairman, Mr. Reid, and members of the subcommittee,
thank you again for the opportunity to appear before you today to
support the President's fiscal year 2005 budget request for the Bureau
of Reclamation. With me today is Bob Wolf, Director of Program and
Budget.
Our fiscal year 2005 request has been designed to support
Reclamation's mission of delivering water and generating hydropower,
``consistent with applicable state and Federal law, in an
environmentally responsible and cost efficient manner.''
Funding is proposed for key projects that are important to the
Department and in line with administration objectives. The budget
request also supports Reclamation's participation in efforts to meet
emerging water supply needs to promote water conservation and sound
water resource management, and help prevent conflict and crises over
water in the west.
The fiscal year 2005 current authority request for Reclamation
totals $956.3 million and is offset by discretionary receipts in the
Central Valley Project Restoration Fund of $46.4 million and proposed
hydropower direct financing of $30.0 million. In addition,
Reclamation's program includes permanent authority of $90.6 million.
The total program, after offsets to current authority and the inclusion
of permanent authority is $970.5 million.
WATER AND RELATED RESOURCES
The fiscal year 2005 request for the Water and Related Resources
account is $828.5 million. The request provides funding for five major
program activities: Water and Energy Management and Development ($376.4
million); Land Management and Development ($39.4 million); Fish and
Wildlife Management and Development ($82.7 million); Facility
Operations ($188.6 million); and Facility Maintenance and
Rehabilitation ($178.0 million). The request is partially offset by an
undistributed reduction of $36.6 million, commonly referred to as
underfinancing, in anticipation of delays in construction schedules and
other planned activities.
The request continues to emphasize the operation and maintenance of
Reclamation facilities in a safe, efficient, economic, and reliable
manner, while meeting our requirements to sustain the health and
integrity of ecosystems that are connected to those operations. It will
also assist the States, tribes, and local entities in solving
contemporary water resource issues in advance of crises over water.
Highlights of the Fiscal Year 2005 Request for Water and Related
Resources include:
Water 2025 ($20 million).--The Water 2025 Initiative allows
Reclamation to continue playing an important role in working with State
and local communities to develop solutions that will help meet the
increased demands for limited water resources in the West, and avoid
water conflicts in areas particularly susceptible to an imbalance
between supply and demand. The request will benefit fast growing
western communities that are struggling with increased water demands,
inadequate water supplies, and compliance with the Endangered Species
Act and other ecosystem water needs. The monies for the precursor
effort, the Western Water Initiative, will be awarded in the form of
competitive grants; this 2004 effort will assist in developing grant
criteria and tracking program impacts; the experience from this effort
will then be used to refine the Water 2025 effort for 2005. The
projects in fiscal year 2004 will facilitate and promote new or
existing intrastate water banks and provide cost sharing monies to
assist various stakeholders in implementing measures that will lead to
improved water management and help avoid future water supply conflicts.
Klamath Project in Oregon and California ($25.0 million).--The
fiscal year 2005 funding request will provide on-the-ground initiatives
to improve water supplies to meet agricultural, tribal, wildlife
refuge, and environmental needs in the Klamath Basin and to improve
fish passage and habitat. This is part of a $67.2 million Department of
Interior request spread across several bureaus, focused on making
immediate on-the-ground impacts, while the Department, in consultation
with the Klamath River Basin Federal Working Group, led by Secretary
Norton, develops a long-term resolution to conflict in the Basin that
will provide water to farmers and tribes while protecting and enhancing
the health of fish populations, and meeting other water needs, such as
those of the adjacent National Wildlife Refuge.
Middle Rio Grande ($18.0 million).--The fiscal year 2005 request
continues funding in support of the Endangered Species Collaborative
Program. In addition, the request continues funding for acquiring
supplemental water, channel maintenance, and pursuing government-to-
government consultations with Pueblos and Tribes. Finally, the funding
will continue efforts that support the protection and contribute to the
recovery of the Rio Grande silvery minnow and southwestern willow
flycatcher.
Animas-La Plata in Colorado and New Mexico ($52.0 million).--The
fiscal year 2005 request includes $52.0 million for the continued
construction of Ridges Basin Dam and Durango Pumping Plant and
preconstruction activities for Navajo Nation Municipal Pipeline, Ridges
Basin Inlet Conduit, utility relocations, and project support
activities.
Columbia/Snake River Salmon Recovery in Idaho, Oregon, Montana, and
Washington ($17.5 million).--This program addresses the implementation
of Reasonable and Prudent Alternatives (RPAs) included in two
Biological Opinions issued in December 2000. The fiscal year 2005
funding will address significantly increased regional coordination,
off-site mitigation activities in selected sub-basins to offset
hydrosystem impacts, and continue research, monitoring and evaluation
efforts.
Site Security ($43.2 million).--Since September 11, 2001,
Reclamation has maintained heightened security at its facilities to
protect the public, its employees, and infrastructures.
The funding in fiscal year 2005 is necessary to cover the costs of
site security activities including:
--surveillance and law enforcement;
--anti-terrorism activities including physical, information, and
personnel security, and threat management; and
--physical emergency security upgrades, with a primary focus on our
National Critical Infrastructure facilities.
Beginning in fiscal year 2005, annual costs associated with
activities for guarding our facilities will be treated as project O&M
costs subject to reimbursability based upon project cost allocations.
Rural Water ($67.5 million).--The fiscal year 2005 funding for
rural water projects emphasizes a commitment to completing ongoing
municipal, rural, and industrial systems. Funding is included for Mni
Wiconi, Mid-Dakota, Garrison, Lewis and Clark and Perkins County
projects. Funding required for Mid-Dakota is sufficient to complete the
project. The administration is convening an interagency group to review
the rural water programs of all Federal agencies, with any
recommendations coming out of this to be included in the President's
Fiscal Year 2006 Budget. The administration has submitted legislation
to formally establish a rural water program within Reclamation.
Hydropower Direct Financing ($30.0 million).--The fiscal year 2005
budget proposes to finance the costs of operation and maintenance of
certain Reclamation hydropower facilities directly from receipts
collected by the Western Area Power Administration from the sale of
electricity. Western Area Power Administration would transfer an
agreed-upon amount to the Bureau of Reclamation for deposit in its
Water and Related Resources account. The transferred funds would be
treated as an offsetting collection. A direct funding arrangement is
already in place for the Bonneville Power Administration.
Safety of Dams ($64.0 million).--The safety and reliability of
Reclamation dams is one of Reclamation's highest priorities.
Approximately 50 percent of Reclamation's dams were built between 1900
and 1950, and 90 percent of those dams were built before the advent of
current state-of-the-art foundation treatment, and before filter
techniques were incorporated in embankment dams to control seepage.
Safe performance of Reclamation's dams continues to be of great concern
and requires a greater emphasis on the risk management activities
provided by the program. The fiscal year 2005 request of $64.0 million
for the Safety of Dams Program is being made to reduce risks to public
safety at Reclamation dams, particularly those identified as having
deficiencies. The slight reduction from the fiscal year 2004 level is a
result of the completion of certain ongoing Safety of Dams actions, and
does not reflect a reduced emphasis on the importance of this program.
POLICY AND ADMINISTRATION
The request for Policy and Administration is $58.2 million. These
funds are used to develop and implement Reclamation-wide policy, rules
and regulations (including actions under the Government Performance and
Results Act) and to perform functions which, by statute, cannot be
charged to specific project or program activities covered by separate
funding authority. These funds support general administrative and
management functions.
CENTRAL VALLEY PROJECT RESTORATION FUND
The fiscal year 2005 Reclamation budget includes a request for the
CVP Restoration Fund of $54.7 million, and is expected to be offset by
discretionary receipts totaling $46.4 million collected from project
beneficiaries under provisions of Section 3407(d) of the Act. These
funds will be used for habitat restoration, improvement and
acquisition, and other fish and wildlife restoration activities in the
Central Valley Project area of California. This fund was established by
the Central Valley Project Improvement Act, Title XXXIV of Public Law
102-575, October 30, 1992. The funding request is calculated based on a
3-year rolling average of collections. The increase is driven by
formulas spelled out in the 1992 Act.
Reclamation is seeking appropriations for the full amount of funds
of the estimated collections for fiscal year 2005.
CALIFORNIA BAY-DELTA RESTORATION
The fiscal year 2005 Reclamation budget includes a request of $15.0
million for California Bay-Delta restoration. The funds will be used
consistent with a commitment to find long-term solutions in improving
water quality; habitat and ecological functions; and water supply
reliability; while reducing the risk of catastrophic breaching of Delta
levees. Further, the fiscal year 2005 budget contains funds for Bay-
Delta activities that can be undertaken within existing statutory
authorities for implementation of Stage 1 activities. Those activities
are included in the preferred program alternative recommended by CALFED
and approved by the Secretary of the Interior. The majority of these
funds will specifically address the environmental water account,
storage studies, and program administration.
PROGRAM ASSESSMENT RATING TOOL (PART)
Reclamation, in close cooperation with the Department and the
Office of Management and Budget, completed one new PART analysis in
conjunction with the fiscal year 2005 budget request, and revised a
2004 PART. Our Science and Technology Program, with its emphasis on
research with direct applicability to the operation of Reclamation
facilities, received a favorable score of 87 percent. The PART review
assisted the program by highlighting areas where more precise data
gathering is needed, which will allow for increasingly accurate
measures of performance.
Also, the administration revised the PART analysis on our
Hydropower Program, which had been one of three programs reviewed in
the fiscal year 2004 budget request. As a result, improved performance
measures were implemented and the program received a score of 92
percent, indicative of a well-run effort.
PRESIDENT'S MANAGEMENT AGENDA
E-Government.--Reclamation is actively participating in Recreation
One-Stop, which provides citizens information about recreational
activities on public lands; Geospatial One-Stop, which makes it easier,
faster, and less expensive for all levels of government and the public
to access geospatial information; and Volunteer.gov which provides
information on volunteer activities. Reclamation program managers
continue to work with stakeholders to leverage technology to accomplish
our mission work.
Financial Management Improvement.--Reclamation submitted its fiscal
year 2003 Financial Statement on an accelerated schedule and received a
clean audit opinion. We continue to make progress to ensure that our
financial systems are compliant with the Joint Financial Management
Improvement Program core requirements. To ensure that accurate and
timely financial information is provided, our financial management
program uses the Federal Financial System, the Program and Budget
System, and its corporate database system to report summary and
transactions data. Reclamation is enhancing its financial policies and
procedures and is participating in the Department's development of a
new financial management system.
Competitive Sourcing.--Reclamation has completed competitive
sourcing studies of 348.6 FTE and directly converted to contract 136.1
FTE, for a reportable savings of approximately $1.1 million. Our goals
for 2002, 2003, and 2004 have been completed and a strategy has been
developed for completing competitive sourcing studies in 2005-2008.
Human Capital.--Reclamation effectively deploys the appropriate
workforce mix to accomplish mission requirements. The use of existing
human resources flexibilities, tools, and technology is in a strategic,
efficient, and effective manner, designed to address the serious
challenges we face in terms of an aging workforce and increased
competition for the engineering skills that Reclamation relies on to
carry out our core activities. Our workforce plan addresses E-
Government and Competitive Sourcing and a plan is in place for
recruitment, retention, and development of current and future leaders.
Performance and Budget Integration.--Reclamation continues to
integrate its budget, planning and performance processes by relating
budget dollars to goals and performance.
In October 2003, Activity Based Costing was fully implemented
within Reclamation. The implementation of ABC will link our work to the
Department activities, track the costs associated with those
activities, and align cost and activities to strategic goals to further
our integration of performance and budget. The availability of this
information will provide Reclamation with additional tools for
management and decisionmaking.
DEMONSTRATED COMMITMENT AND ACCOMPLISHMENTS
In fiscal year 2003, Reclamation delivered 10 trillion gallons of
water to over 31 million people in the 17 western States for municipal,
rural, and industrial uses. Reclamation facilities stored over 245
million acre-feet of water, serving one of every five western farmers
to irrigate about 10 million acres of land. Those irrigated lands
produced 60 percent of the Nation's vegetables and 25 percent of its
fruits and nuts. As the largest water resources management agency in
the West, Reclamation continues to administer and/or operate 348
reservoirs, 56,000 miles of water conveyance systems, and 58
hydroelectric facilities, which generate 42 billion kilowatt-hours
annually.
Reclamation also continues to manage approximately 8.6 million
acres of Federal land, plus another 600,000 acres of land under
easements. In addition, our facilities provide substantial flood
control, recreation, and fish and wildlife benefits. Reclamation and
its employees take very seriously their mission of managing,
developing, and protecting water and related resources in an
environmentally and economically sound manner in the interest of the
American public.
The historic Colorado River Water Pact was signed on October 16,
2003, by the Secretary, the governor of California and officials from
San Diego County Water Authority, Imperial Irrigation District,
Metropolitan Water District of Southern California and Coachella Valley
Water District, embarking on a new era of cooperation on the river by
fulfilling a promise the State of California made more than 70 years
ago. Under Secretary Norton's leadership, California has agreed to take
specific, incremental steps that will reduce its over-reliance on the
Colorado River water in the next 14 years, allowing the State to live
within its authorized annual share of 4.4 million acre-feet. The
agreement allows the six other Colorado River Basin States to protect
their authorized shares to meet future needs.
The fiscal year 2005 budget request demonstrates Reclamation's
commitment in meeting the water and power needs of the West in a
fiscally responsible manner. This budget continues Reclamation's
emphasis on delivering and managing those valuable public resources. In
cooperation and consultation with the State, tribal, and local
governments, along with other stakeholders and the public at large,
Reclamation offers workable solutions regarding water and power
resource issues that are consistent with the demands for power and
water. With the need to pursue cost effective and environmentally sound
approaches, Reclamation's strategy is to continue to use the
Secretary's four ``C's:'' ``Conservation through Cooperation,
Communication, and Consultation''. These principles provide Reclamation
an opportunity, in consultation with our stakeholders, to use decision
support tools, including risk analyses, in order to develop the most
efficient and cost-effective solutions to the complex challenges that
we face.
Moreover, Reclamation's request reflects the need to address an
aging infrastructure and the rising costs and management challenges
associated with scarce water resources. As our infrastructure ages, we
must direct increasing resources toward technological upgrades, new
science and technologies; and preventative maintenance to ensure
reliability; which will increase output, and improve safety.
In fiscal year 2003, critical Safety of Dams modifications of
significant cost and scope were initiated at Deadwood Dam, ID; and Deer
Creek Dam, UT.
The site security activities in fiscal year 2003 included
integrated security system analysis to determine emergency security
upgrades and long-term measures for four National Critical facilities
and 14 of Reclamation's highest priority facilities. Facility
fortifications totaling $5.5 million are now in place. In addition, we
completed threat and physical security risk analyses and developed
security plans.
FISCAL YEAR 2005 PLANNED ACTIVITIES
In fiscal year 2005, Reclamation plans to continue making the
required deliveries of water under Reclamation contracts; optimize
hydropower generation, consistent with other project purposes,
agreements, and the President's energy policy; and incorporate
environmental, recreational, land management, fish and wildlife
management and enhancement, water quality control, cultural resources
management, and other concerns into the water supply and power
generation actions of Reclamation. Finally, Reclamation plans to
identify water supply needs for consumptive and non-consumptive
purposes in Reclamation States in the next 25 years that are likely to
be unmet with existing resources.
Reclamation also plans to continue ranking within the upper 75th
percentile of low cost hydropower producers; by comparing power
production costs per megawatt capacity. Reclamation plans to achieve a
forced outage rate of 50 percent better than the industry average which
is currently 3 percent. While Reclamation anticipates completing the
baseline condition assessments for 80 percent of the recreation
facilities it manages, it plans to continue to maintain the overall
facility condition rating assessed at the fiscal year 2003 baseline
level.
CONCLUSION
Mr. Chairman, Please allow me to express my sincere appreciation
for the continued support that this committee has provided Reclamation.
I would like to thank several members of the Appropriations staff that
have provided invaluable support to Reclamation during this past year:
Clay Sell, Drew Willison, Tammy Perrin, Erin McHale, and Roger
Cockrell. We have enjoyed working with Clay Sell over the years and
wish him well. This completes my statement. I would be happy to answer
any questions you may have at this time.
______
Prepared Statement of Bennett W. Raley, Assistant Secretary for Water
and Science, Department of the Interior
Good morning. On behalf of the Secretary of the Interior, I am
pleased to be here today before the Subcommittee on Energy and Water
Development to discuss the fiscal year 2005 budget for the Department
of the Interior. I appreciate the opportunity to highlight our
priorities and key goals.
The Department of the Interior's mission is complex and multi-
faceted. We provide recreation opportunities. We provide access to
resources. We protect some of the Nation's most significant cultural,
historic, and natural places. We serve communities through science,
wildland firefighting, and law enforcement. We deliver water and power.
We fulfill trust and other responsibilities to American Indians, Alaska
natives, and the Nation's affiliated island communities.
Interior's mission is also challenging. It is challenging because
the world around is increasingly complex as expectations evolve, new
technologies emerge, and our responsibilities to the American people
increase.
Above all, our mission is inspiring. We have close connections to
America's lands and people, whether American Indians and naturalists,
hikers and hunters, ranchers and recreation enthusiasts, or
environmentalists and entrepreneurs. Our responsibilities touch the
lives of individuals across the Nation. How well we fulfill our mission
influences:
--Whether farmers will have water and people can turn on the tap;
--Whether our children will enjoy America's grand vistas, places, and
history;
--Whether we can hike, bird watch, canoe, or hunt and fish; and
--Whether we can warm our homes and fuel our transportation systems.
By fulfilling Interior's mission, we can leave a legacy of healthy
lands and waters, thriving communities, and dynamic economies. That
legacy depends on our ability to work together across landscapes and
with communities. It depends on the efforts of our 70,000 employees,
200,000 volunteers and thousands of partners.
BUDGET OVERVIEW
Our 2005 budget request for current appropriations is $11.0
billion. The Department anticipates collection of $10.1 billion in
receipts in 2005, equivalent to 92 percent of our current
appropriations request.
The 2005 request includes $10.0 billion for programs funded in the
Interior and Related Agencies Appropriations Act, an increase of $228.4
million or 2.3 percent over the 2004 enacted level.
Our budget also includes $1.0 billion for programs funded in the
Energy and Water Development Appropriations Act, an increase of $21.8
million, or 2.2 percent above 2004.
Interior's 2005 budget request provides the single clearest
statement of how we plan to work toward our goals in the upcoming year.
Our budget fulfills the President's commitments to fully fund the Land
and Water Conservation Fund; address the backlog of park repair and
maintenance needs; fix Bureau of Indian Affairs schools; and re-
establish healthy forests and rangelands.
Our 2005 budget also advances other key goals. It accelerates the
cleanup of abandoned coal mine lands; expands opportunities for
cooperative conservation; advances trust reform; seeks to avoid water
conflicts throughout the West through Water 2025; and supports the
goals of the National Energy Plan.
BUREAU OF RECLAMATION
The Bureau of Reclamation is the largest supplier and manager of
water in the 17 western States. Its facilities include 348 reservoirs
and 456 dams with the capacity to store 245 million acre-feet of water.
These facilities deliver water to one of every five western farmers for
about 10 million acres of irrigated land and provide water to over 31
million people for municipal, rural, and industrial uses. Reclamation
is also the Nation's second largest producer of hydroelectric power,
generating 42 billion kilowatt hours of energy each year from 58 power
plants. In addition, Reclamation's facilities provide substantial flood
control, recreation, and fish and wildlife benefits.
Since its establishment in 1902, Reclamation has developed water
supply facilities that have contributed to sustained economic growth
and an enhanced quality of life in the western States. Lands and
communities served by the bureau's projects have been developed to meet
agricultural, tribal, urban, and industrial needs. In more recent
years, the public has demanded better environmental protections and
more recreational opportunities, while municipal and industrial
development has required more high quality water. Continuing population
growth, especially in urban areas, will inevitably lead to even greater
competition for the West's limited water resources. These increased
demands are further compounded during periods of drought.
The 2005 request for current appropriations is $956.3 million, a
net increase of $13.5 million above the 2004 enacted level. The request
for current appropriations is offset by discretionary receipts in the
Central Valley Project Restoration Fund and by a proposal to finance by
direct funding certain hydropower operation and maintenance activities,
resulting in a net discretionary request of $880.0 million, a decrease
of $32.1 million from the 2004 enacted level. The request for permanent
appropriations totals $90.5 million.
The request for the Water and Related Resources account is $828.5
million. The account total includes an undistributed reduction of $36.6
million in anticipation of delays in construction schedules and other
planned activities. The 2004 Energy and Water Development
Appropriations Act, for the first time, directed Reclamation to prorate
underfinancing to each project and program. In accordance with this
direction, the basis for comparing the amount of 2005 funding changes
is the 2004 enacted level with underfinancing applied.
The 2005 request provides a total of $366.6 million for facility
operations, maintenance, and rehabilitation. This includes $64.0
million for the Dam Safety program to protect the downstream public by
ensuring the safety and reliability of Reclamation dams. The 2005
request also includes a total of $498.4 million for resource management
and development activities.
Water 2025.--Chronic water supply problems in the West will
continue to challenge the Nation to find effective approaches to long-
term management of water resources. Recent crises in the Klamath and
Middle Rio Grande basins, where water shortages have affected American
Indians, farmers, urban residents, and fish and wildlife vividly
demonstrate the consequences of failing to address strategically the
problem of competing demands for constrained water supplies.
The 2005 budget includes $21.0 million for Water 2025 to minimize
future western water crises by fostering conservation and interagency
coordination, enhancing water supplies through improved technologies,
and managing water resources in cooperation with others. Collaborative
approaches and market-based water transfers will help address emerging
needs. Federal investments in research and development will improve
water treatment technologies such as desalination.
A Water 2025 increase of $12.5 million for the Bureau of
Reclamation will build on the 2004 Western Water Initiative, providing
a total of $20.0 million to retrofit and modernize existing facilities,
promote conservation and more efficient use of existing water supplies,
improve water management by using excess capacity at Federal
facilities, and facilitate research to provide alternative water
supplies.
The U.S. Geological Survey's 2005 budget includes $1.0 million for
Water 2025 to conduct groundwater availability assessments, develop
tools and techniques for protecting biological resources while meeting
water supply needs, and to improve methods to characterize aquifers.
Animas La Plata.--The 2005 budget proposes funding Animas La Plata
at 2004 levels, prior to the application of underfinancing. This level
of $52.0 million allows progress towards satisfying the Indian water
rights settlement with the continued construction of Ridges Basin Dam
and Durango Pumping Plant; road and utility relocations;
preconstruction activities for the Navajo Nation municipal pipeline;
and design and contract preparation for the Ridge Basin Inlet Conduit.
In the fall of 2003, Reclamation completed an internal
investigation into why Animas La Plata project costs were
underestimated by $162 million or 48 percent. As a result of the
investigation, Reclamation has recalculated the construction cost
estimate and will review/reconfigure its internal organizational
approach to the project; review its Indian Self-Determination and
Assistance Act process to improve construction efficiencies; improve
interaction and communication with the project sponsors; seek ways to
reduce costs; and review its own procedures for developing construction
cost estimates.
CAP and CVP.--The request provides $34.1 million for the Central
Arizona Project. The request also includes $162.9 million for
operating, managing and improving California's Central Valley Project.
This includes a total of $23.2 million for CVP's Replacement,
Additions, and Extraordinary Maintenance program. The CVP request also
includes the third and final $34.0 million payment to the plaintiffs
for the settlement of Sumner Peck Ranch Inc. v. Bureau of Reclamation.
Multiple-use Management.--The budget puts continued emphasis on
Reclamation's core mission of delivering water and power, while
focusing on ensuring site security and on maximizing efficient ways to
conserve water for multiple uses, including endangered species
protection. The Klamath, Columbia Basin, and Savage Rapids Dam
projects, along with the Columbia/Snake Rivers salmon recovery and the
ESA recovery implementation programs, are funded at $72.2 million,
which is $15.7 million above 2004 enacted levels. These increases,
together with the Water 2025 initiative, will help optimize water
supply through effective and more efficient water management.
The Middle Rio Grande project is funded at $18.0 million, $14.3
million below the 2004 enacted level. This funding level is consistent
with the President's budget request in recent years and addresses needs
for ESA coordination, the Middle Rio Grande Endangered Species Act
Collaborative program, and facility operations to manage and control
water flow.
Rural Water.--The 2005 budget request for rural water projects is
$67.5 million, a decrease of $9.1 million from the 2004 enacted level
(with underfinancing applied) and an increase of $49.5 million above
the 2004 President's budget. The budget request supports the
Department's strategy to complete construction projects to increase
water delivery infrastructure and water availability. In the long-term,
the water needs of rural communities may benefit from Water 2025 by
helping communities look at new technologies and new management
strategies for their water resources.
Other Project Requests.--The budget includes $43.2 million, an
increase of $15.4 million, for site security. This increase will be
used to assure the safety and security of Reclamation facilities that
will in turn lower the risk of harm to life and property. Beginning in
2005, the budget assumes that the guards and surveillance-related
security costs for Reclamation's facilities are reimbursed by project
beneficiaries.
The budget request also establishes a direct financing relationship
between Reclamation hydropower facilities and their customers, for
those facilities where such an arrangement is not already in place and
includes an offsetting collection proposal of $30.0 million.
Other funds are requested to assist the Bureau in meeting
objectives in the areas of improved water management and environmental
compliance. Examples include $15.3 million for the Lower Colorado River
Operations program and $13.6 million for the Colorado River Storage
Project.
The 2005 Reclamation budget includes a request for $54.7 million
from the Central Valley Project Restoration Fund, which is the
estimated level of collections from CVP water and power users. This
request is offset by collections estimated at $46.4 million from
mitigation and restoration charges authorized by the Central Valley
Project Improvement Act.
The 2005 budget includes $15.0 million for the implementation of
Stage one CALFED activities consistent with existing authorities. These
activities are included in the preferred program alternative
recommended by CALFED and approved by the Secretary of the Interior.
The majority of these funds will specifically address the environmental
water account, water storage and conveyance studies, and program
administration.
CENTRAL UTAH PROJECT COMPLETION ACT
The Central Utah Project Completion Act provides for completion of
the project by the Central Utah Water Conservancy District. The
Completion Act also authorizes funding for fish, wildlife, and
recreation mitigation and conservation activities; establishes the Utah
Reclamation Mitigation and Conservation Commission to oversee
implementation of those activities; and authorizes funding for the Ute
Indian Rights Settlement. A program office located in Provo, Utah
provides liaison with the District, Mitigation Commission, and the Ute
Indian Tribe and otherwise assists in carrying out responsibilities of
the Secretary. Under the Act, the responsibilities of the Secretary
cannot be delegated to the Bureau of Reclamation.
The 2005 Central Utah Project requests $46.3 million, an increase
of $8.3 million over the 2004 enacted level. Most of this increase is
due to a transfer of budgetary authority and responsibility from the
Western Area Power Administration to the Department. The request
includes: $28.4 million for planning and construction activities
administered by the District; $15.5 million for mitigation and
conservation activities funded through the Mitigation Commission; and
$2.4 million for activities administered by the program office, which
includes $700,000 for mitigation and conservation activities funded
through the program office.
KLAMATH BASIN
The Department's partnership efforts are bringing about change in
the Klamath Basin. Interior bureaus, partnering with other Federal
agencies, are restoring habitat, removing fish migration barriers,
acquiring land, using water banking, and researching the ecology of the
federally-listed fish species. Through these partnership efforts, the
Department is seeking long-term resolution of conflicts over water and
land management.
The 2005 budget includes $67.6 million for this effort, a $17.9
million increase over 2004 funding levels. Other government agencies
will provide an additional $38 million, bringing a total of $105
million to this effort. The budget includes funds to remove the
Chiloquin Dam, which impedes passage of endangered suckers to 70 miles
of spawning habitat on the Sprague River, and to acquire lands adjacent
to Agency Lake Ranch to increase water storage and fisheries habitat
restoration. Additional funding will also support water banking, water
supply enhancement, and water quality improvement. Reclamation's budget
contains $25.0 million for Klamath.
ADDRESSING LONG-STANDING DEPARTMENT CHALLENGES
Abandoned Mine Lands.--Since enactment of the Surface Mining
Control and Reclamation Act in 1977, the Department has partnered with
States, Tribes, local governments, and others to reclaim over 225,000
acres of damaged and dangerous lands. Despite these accomplishments
over the past two and a half decades, dangerous abandoned coal mines
remain within 1 mile of the homes of more than 3.5 million Americans.
Since 1999 a total of 100 people have died in incidents related to
abandoned coal mines.
The primary impediment to completing reclamation of abandoned mines
is the fundamental imbalance between the goals of the 1977 Act and the
requirements for allocating funds under the Act. The statutory
allocation formula limits the ability of the Office of Surface Mining
to meet its primary objective of abating the highest-priority abandoned
coalmines. The majority of funding in the program, or 71 percent, is
distributed to States on the basis of current production. Yet there is
no relationship between current production and the number of priority
sites in each State, which is a function of pre-1977 production.
Over the past 25 years, the allocation formula has enabled some
States and Tribes to complete reclamation of all abandoned coal mines.
Others are decades away from completing work on the most critical,
high-priority sites. We estimate it will take 60 years to reclaim
dangerous abandoned mine sites in Pennsylvania and 50 years in West
Virginia.
Our 2005 budget proposal seeks to correct this problem. We propose
to direct reclamation grants to sites where the danger is greatest. The
reauthorization proposal will allow all States to eliminate significant
health and safety problems within 25 years and would remove 142,000
people from risk annually. At the same time, by shifting funds to speed
resolution of serious health and safety problems, the proposal will
reduce fee collections and spending by $3 billion over the life of the
program.
Under our proposal, States and Tribes that have certified
completion of high-priority projects will be paid their accumulated
State share balances in the abandoned mine lands fund as of September
30, 2004. These payments will be made over a 10-year period. Going
forward, the grants would be distributed for high priority mine
reclamation projects.
The 2005 budget proposes an appropriation of $243.8 million for the
abandoned mine lands program, including $53.0 million for the initial
State share balance distribution to certified States and Tribes.
Indian Trust Programs.--Fulfilling the Department's trust
responsibilities continues as one of our highest priorities and
greatest challenges. The assets of the trust today include over 56
million acres of land. On these lands, the Department manages over
100,000 leases for individual Indians and Tribes. We collect
approximately $194 million per year from leasing, use permits, sale
revenues, and interest for 260,000 open individual Indian money
accounts. About $378 million per year is collected in 1,400 tribal
accounts for 300 Tribes. In addition, the trust manages approximately
$2.9 billion in tribal funds and $400 million in individual Indian
funds.
For 2005, we are seeking $614 million for our Unified Trust budget,
a net increase of $161 million.
In 2003 we began to reorganize trust functions in the Bureau of
Indian Affairs and the Office of the Special Trustee for American
Indians. The new organization is based on a detailed analysis and a
year-long consultation process with tribal leaders. Our reorganization
reflects a synthesis of the views heard during the consultation
process. When fully implemented, the new organization will better meet
fiduciary trust responsibilities, be more accountable at every level,
and operate with people trained in the principles of fiduciary trust
management.
To support continued implementation of the new organization, the
2005 budget proposes a net increase of $7.2 million, including funding
for 85 new trust-related positions at the local level. We request an
additional $4.0 million to quicken the pace at which probate cases are
resolved.
Improving our trust organization will not by itself resolve the
issues that we face in managing the trust. A still greater challenge
remains. That challenge is the fractionation, or continuing
subdivision, of individual Indian interests in the land that the
Federal Government holds in trust. Indian trust lands are primarily
transferred through inheritance. With each passing generation,
individual interests in the land become further subdivided among heirs,
each of whom holds a smaller and smaller interest in the land. Many
acres of trust land are already owned in such small ownership interests
that no individual owner will derive any meaningful value from that
ownership. Without corrective action, this problem will grow
exponentially.
As the number of interests grows, we expect the cost to the Federal
Government for managing, accounting for, and probating these interests
to increase substantially, possibly to as much as $1 billion at the end
of the next 20 years.
The Indian Land Consolidation program, which acquires small
ownership shares in allotted land from willing sellers, is a critical
component of trust reform. We have conducted this program as a pilot
for several years. The pilot has taught valuable lessons about the need
to target purchases to maximize return of land to productive use and
allow closure of accounts associated with fractional interests.
The 2005 budget proposes an unprecedented amount of $75.0 million
for Indian land consolidation, an increase of $53.3 million. This
funding will support an expansion beyond the seven pilot reservations
to include additional reservations with the most highly fractionated
lands. On a nationwide basis, we are targeting opportunities to
purchase the most fractionated interests. Interior plans to use
contractual arrangements with Tribes or private entities to acquire
individual interests.
This commitment to end fractionation will also require legislative
action to provide for workable probate reform, disposal of unclaimed
property, and partition of land. We want to continue to work with the
Congress to find meaningful and constructive solutions to these issues.
The 2005 budget also proposes funding to address the issue of
accounting for past transactions in the trust. As the committee is
aware, the American Indian Trust Management Reform Act of 1994 requires
the Secretary of the Interior to ``account'' for ``the daily and annual
balance of all funds held in trust by the United States for the benefit
of an Indian Tribe or an individual Indian which are deposited or
invested pursuant to the Act of June 24, 1938.''
The Department is currently involved in a major class action,
Cobell v. Norton, and 25 tribal suits over the Department's management
of Indian trust funds. On January 6, 2003, as ordered by the District
Court in the Cobell litigation, the Department filed The Historical
Accounting Plan for Individual Indian Money Accounts. This plan
provides for an historical accounting for about 260,000 individual
Indian accounts over a 5-year period at a cost of approximately $335
million. The accuracy of the transactions would be verified by
reviewing support documentation on a transaction-by-transaction basis
for all transactions over $5,000 and by statistically sampling
transactions under $5,000. The sampling methodology would be designed
to provide a 99 percent confidence level at any error rate.
On September 25, 2003, the Cobell court issued a structural
injunction directing a far more expansive accounting and requiring that
it be completed under more constrained time lines. We estimate that the
cost of compliance with the structural injunction would be between $6
billion to $12 billion. An appeal from the September decision is
pending. The Court of Appeals for the D.C. Circuit has stayed the
structural injunction. In addition, the 2004 Interior Appropriations
Act provides that the Department is not required to commence or
continue an accounting for IIM accounts until 2004 or the Congress
amends the Trust Management Reform Act to delineate the Department's
historical accounting obligations or until December 31, 2004, whichever
occurs first.
The 2005 budget includes $109.4 million for historical accounting.
This increase of $65.0 million over the enacted 2004 appropriation is
targeted to provide $80.0 million for IIM accounting and $29.4 million
for tribal accounting. The budget for IIM accounting is based on the
estimate of the Department's costs to continue implementation of its
historical accounting process. This amount may be revised depending on
how the Court of Appeals rules with regard to the structural injunction
in the Cobell case and on whether Congress acts to delineate the
specific historical accounting obligations of the Department as
suggested in the 2004 Appropriations Act. The Department will continue
to work with the Congress and trust beneficiaries to consider
settlement of the historical accounting and related issues.
INVESTING IN CONSERVATION
Cooperative Conservation.--Among Interior's most inspiring roles is
its mission to conserve lands and waters across America. As we are all
aware, nature knows no jurisdictional boundaries. Conservation in the
21st century depends increasingly upon partnerships across a mosaic of
land ownerships. At Interior, we recognize that we cannot manage
Federal lands successfully unless we are able to work with adjacent
landowners, States, Tribes, and communities. We also recognize that the
Nation cannot achieve its conservation goals solely by relying upon--
and adding to--the Federal dominion of lands.
These two perspectives underscore the importance of cooperative
conservation. Through a variety of conservation partnerships,
Interior's land managers are joining with citizen stewards to remove
invasive species, reduce stream bank erosion, and enhance habitat for
threatened and endangered species. Through these partnerships, the
Department is building the new environmentalism of citizen stewards
called for by President Bush. These partnerships leverage Federal
dollars by a factor of two or more. They engage Americans in
conservation. They help us work with citizens to find common ground and
simultaneously achieve healthy lands, thriving communities, and dynamic
economies. We look forward to working with members of Congress and
their constituents in these conservation successes.
The 2005 budget proposal expands opportunities for conservation
partnerships with citizens, organizations, and communities throughout
the Nation. The budget proposes to spend $507.3 million, a 20 percent
increase, to expand opportunities for conservation partnerships with
citizens, organizations and communities.
A cornerstone of our conservation partnership budget is the
Cooperative Conservation Initiative. The Department has a long history
of working cooperatively with others to achieve its conservation
mission. Yet the resources available to land managers to foster
innovative and collaborative conservation have fallen short of the
demand. Across the Nation, citizens are working to overcome conflict
and, instead, work together to maintain healthy lands and waters. Our
Cooperative Conservation Initiative seeks to address this growing,
giving managers the support necessary to leverage funds with private
citizens, States, Tribes, communities, and businesses to protect and
restore habitats, wildlife and plants.
Our Cooperative Conservation Initiative builds on existing
conservation partnership programs that have established productive
relationships with local communities and citizens. In total, we propose
that this initiative will provide $129.5 million, an increase of $25.5
million, for a suite of seven programs: the challenge cost share
programs in the Bureau of Land Management, the Fish and Wildlife
Service, and the National Park Service; the FWS Coastal program; FWS
Migratory Bird Joint Ventures; FWS Partners for Fish and Wildlife; and
Take Pride in America.
The budget proposes $29.6 million for challenge cost-share
activities, an increase of $8.4 million over 2004. This request will
enable land managers to undertake additional natural resource
restoration and species protection projects on or impacting Federal
lands. Dynamic partnerships with individuals, Tribes, State and local
governments, non-profit organizations, and others will support an array
of projects to restore damaged habitats and lands and achieve the
conservation goals of the Department's land management agencies.
Projects require a one-to-one match or better, thereby at least
doubling the benefits of Federal dollars. The request for the bureau
traditional challenge cost-share programs is $24.4 million.
In 2003, challenge cost-share programs funded 256 resource
restoration projects with more than 700 partners in 40 States and
Puerto Rico. The ratio of matching non-Federal funds to Federal funds
was nearly 2 to 1, with the Federal portion at $12.9 million and total
funding at $36.0 million.
The 2005 budget includes $50.0 million for the Partners for Fish
and Wildlife program. Through the Partners program, the Fish and
Wildlife Service has established productive relationships with
communities and over 30,000 landowners, providing financial and
technical assistance and restoration expertise to private landowners,
Tribes, and other conservation partners. Since its inception in 1987,
the Partners program has restored 677,000 acres of wetlands; nearly 1.3
million acres of prairie, native grassland, and other uplands; and
5,560 miles of stream and streamside habitat.
In 2005 the Partners program will leverage $5.0 million in the High
Plans region through a public/private initiative that will restore
grassland habitats and declining species over an 11-State region. In
cooperation with landowners and other partners, the Fish and Wildlife
Service will focus conservation efforts on restoring, enhancing, and
protecting 2 million acres over the next 10 years. The 2005 Partners
budget also includes $6.2 million for partnership efforts in the Upper
Klamath basin.
Augmenting our partnership achievements is the work of over 200,000
volunteers who provide over 8 million hours to Interior's programs and
projects throughout the Nation. These volunteers help repair and
maintain trails, restore habitat, participate in monitoring and
research programs, and assist our land managers in many other ways. To
promote this spirit of volunteerism, the Department has reactivated the
Take Pride in America program. In California, volunteers enlisted
through Take Pride pledged 400,000 hours of service to help restore
areas devastated by wild land fires. The 2005 budget includes $1.0
million for the Take Pride program as part of the Cooperative
Conservation Initiative.
Also funded within the Cooperative Conservation Initiative is the
Fish and Wildlife Service's Coastal program, for which we propose a
funding increase of $2.9 million, bringing total funding to $13.1
million. The Coastal program leads FWS conservation efforts in bays,
estuaries, and watersheds around the U.S. coastline and leverages
Federal funding at a rate of 4:1. We also propose to increase funding
for the Migratory Bird Joint Ventures program by $1.2 million for a
total of $11.4 million. The funding increase will allow FWS to enhance
15 existing Joint Ventures and fund the Northern Great Plains and
Central Hardwoods Joint Ventures.
Endangered Species Grant Programs.--The Department's cooperative
conservation efforts also include a number of grant programs that
provide expanded opportunities for State, tribal, local and private
partners to participate in conservation and protection of endangered,
threatened, and at-risk species. These programs will help this nation
invest habitat protection and recovery of species--the ultimate goal of
the Endangered Species Act. Through these investments, we can achieve
on-the-ground conservation results and help avoid the conflicts, land
management stresses, and procedural workloads that ensue when species
become endangered.
The Landowner Incentive Program provides competitive matching
grants to States, Territories, and Tribes to create, supplement, or
expand programs to protect and manage habitats on private lands that
benefit listed species or species at risk. The 2005 budget includes
$50.0 million to assist private landowners in conserving and restoring
habitat for endangered species and other at-risk plants and animals.
This is an increase of $20.4 million over 2004.
The Private Stewardship Grants program provides grants and other
assistance to individuals and groups engaged in local, private, and
voluntary conservation efforts that benefit federally listed, proposed,
candidate or other at-risk species. A panel of representatives from
State and Federal Government, agricultural and private development
interests, and the scientific and conservation communities assess and
make recommendations regarding these grants. The 2005 budget proposes
$10.0 million for the program, a $2.6 million increase over 2004.
The Cooperative Endangered Species Conservation Fund provides
grants to States and Territories to participate in projects to conserve
candidate, proposed, and threatened and endangered species. Grants to
States and Territories allow them to participate in an array of
voluntary conservation projects for candidate, proposed, and listed
species. These funds may in turn be awarded to private landowners and
groups for conservation projects. The CESCF grants include funding for
States and Territories to implement conservation projects to support
the development of Habitat Conservation Plans and to acquire habitat
for threatened or endangered species. The 2005 budget proposes $90
million, an increase of $8.4 million, for the appropriated portion of
this program.
Our grant programs also aid a wide variety of other wildlife. The
2005 budget proposes $80.0 million for the State and Tribal Wildlife
Grants program. These grants help develop and implement State and
tribal programs for the benefit of wildlife and its habitat, not
limited to species that are hunted or fished. The program exemplifies
our cooperative conservation vision, allowing States and Tribes to
tailor their conservation efforts in a manner that best fits local
conditions. A $10.9 million increase for the program in 2005 will
significantly advance efforts of State and tribal fish and game
agencies to address on-the-ground wildlife needs. Based on the high
level of interest in this program, we expect this program will have
lasting benefits for fish and wildlife, while fostering stronger
working relationships between Federal, State and tribal governments.
Full Funding for the Land and Water Conservation Fund.--Our
cooperative conservation programs are an important component of the
2005 Land and Water Conservation Fund budget request. Overall, the
Department's budget seeks $660.6 million from the Land and Water
Conservation Fund for 2005, including $153.3 million for land
acquisition and $93.8 million for the State grant program. The
Department's request, combined with the request for the U.S. Forest
Service, brings total government-wide LWCF funding to $900.2 million.
The 2005 LWCF budget includes the same mix of programs proposed in
2004. This mix strikes an effective balance between Federal land
acquisition and cooperative efforts to fulfill LWCF goals.
We believe effective conservation of lands and natural resources
cannot rely primarily on expanding the Federal estate through land
acquisition. Such acquisitions remove lands from the local tax base.
Equally significant, each time we acquire more Federal lands, future
operations and maintenance costs ensue in perpetuity. Supporting local
recreation and conservation through partnership programs enables us to
leverage Federal funding. In many cases, these programs match Federal
funds at a ratio of more than 2:1. They give us an opportunity to work
hand-in-hand with States, communities, and local landowners to build
support for long-term conservation.
CONCLUSION
The budget plays a key role in advancing our vision of healthy
lands, thriving communities, and dynamic economies. Behind these
numbers lie people, places, and partnerships. Our goals become reality
through the energy and creativity efforts of our employees, volunteers,
and partners. They provide the foundation for achieving the goals
highlighted in our 2005 budget.
This concludes my overview of the 2005 budget proposal for the
Department of the Interior and my written statement. I will be happy to
answer any questions that you may have.
______
Prepared Statement of J. Ronald Johnston
My name is Ronald Johnston. I serve as the Program Director of the
Central Utah Project Completion Act Office under the Assistant
Secretary--Water and Science in the Department of the Interior. I am
pleased to provide the following information about the President's
fiscal year 2005 budget for implementation of the Central Utah Project
Completion Act.
The Central Utah Project Completion Act, Titles II-VI of Public Law
102-575, provides for completion of the Central Utah Project (CUP) by
the Central Utah Water Conservancy District. The Act also authorizes
funding for fish, wildlife, and recreation mitigation and conservation;
establishes an account in the Treasury for deposit of these funds and
other contributions; establishes the Utah Reclamation Mitigation and
Conservation Commission to coordinate mitigation and conservation
activities; and provides for the Ute Indian Water Rights Settlement.
The Act provides that the Secretary may not delegate responsibility
under the Act to the Bureau of Reclamation. As a result, the Department
has established an office in Provo, Utah, with a Program Director to
provide oversight, review, and liaison with the District, the
Commission, and the Ute Indian Tribe, and to assist in administering
the responsibilities of the Secretary under the Act.
The 2005 request for the Central Utah Project Completion Account
provides $46.3 million for use by the District, the Commission, and the
Department to implement Titles II-IV of the Act, which is $8.3 million
more than the 2004 enacted level. Most of this increase is due to a
transfer of budgetary authority and responsibility from the Western
Area Power Administration to the Department of the Interior ($6.1
million).
The funds requested for the District ($28.4 million) will be used
to continue the completion of the Diamond Fork System ($8.5 million);
to continue construction on Uinta Basin Replacement Project ($13.0
million); and to implement water conservation measures, local
development projects, and continue planning and NEPA compliance for the
Utah Lake System ($6.9 million). We are pleased to report that the
problems in the Diamond Fork System associated with a cave-in and
dangerous levels of hydrogen sulfide gas have been resolved, the
construction of the alternative facilities is nearly complete, and
water should be delivered through the facilities this summer. We are
planning a celebration of the completion of these major facilities this
summer. The members of the committee will be invited to attend.
The funds requested for the Mitigation Commission ($15.5 million)
will be used to implement the fish, wildlife, and recreation mitigation
and conservation projects authorized in Title III ($7.4 million); to
implement the fish and wildlife activities associated with the Uinta
Basin Replacement Project ($1.0 million); to complete mitigation
measures committed to in pre-1992 Bureau of Reclamation planning
documents ($1.0 million); and to fulfill the mitigation obligations
required under section 402(b)(3)(B) of the Act ($6.1 million). Title
III activities funded in 2004 include the Provo River Restoration
Project; acquisition of habitat, access, and water rights; and fish
hatchery improvements.
Finally, the request includes $2.4 million for the Program Office.
This includes $1.7 million for program administration, $300,000 for
mitigation and conservation projects outside the State of Utah, and
$400,000 for operation and maintenance costs associated with instream
flows and fish hatchery facilities.
In conclusion, we appreciate the opportunity to testify before the
committee and would be happy to respond to any questions.
Senator Domenici. Yes, sir.
Senator Craig, do you have some questions?
Senator Craig. Just a couple.
Senator Domenici. All right.
Senator Craig. And, again, John, let me thank you for your
presence here and the work you're doing. Your reality check, by
the graphs and charts you've shown us, clearly demonstrate what
is really at risk in the West, and the problems we all face.
In the area of site security, $43.2 million, there is a
growing concern that some of this is overdone. And while site
security is critically important, and we all know that, my
guess is, when the dust settles from 9/11, we'll learn how to
do it better with less. But what are going to be the costs to
the users of these facilities? How much of--is there going to
be a cost pass-through to users in fees that they might be
expecting?
Commissioner Keys. Mr. Craig, out of the $43 million that
we have requested, $18 million of that is associated with
guards and surveillance. Of that $18 million, $12 million would
be part of the operation and maintenance budgets, and we would
expect to be reimbursed by the water users. Water users being
from the power side, from--all of the water users that have an
allocation from those Federal projects.
Senator Craig. So it's a direct cost pass-through of $12
million.
Commissioner Keys. That's correct.
Senator Craig. And I assume that, because you've arrived at
a figure of $12 million, you know how that breaks out.
Commissioner Keys. Mr. Craig, we do. It is based on the
authorized purposes for the project and the cost allocations
that have been done over--well, when the projects were
completed or when the cost repayments started. So it's along
the cost allocations that are already in place.
Senator Craig. But an increase.
Commissioner Keys. It would increase over what they were
paying before 9/11/2001.
Senator Craig. Okay. I'd like to see those figures. I'd
like to know how that impacts both users, from the standpoint
of water users, and then--and the utility. I assume you're
talking about WAPA rate payers in that case, would you not be?
Commissioner Keys. Mr. Craig, it is all of the power users.
It's WAPA, it's Bonneville----
Senator Craig. Yeah, all of them.
Commissioner Keys [continuing]. Power Administration, and
the other water users. We can provide that breakdown for you.
[The information follows:]
In referencing preliminary estimates for guard reimbursability,
Senator Craig has requested to see the figures. I have agreed to
provide that breakdown. Below are those figures:
REIMBURSABILITY OF GUARD COSTS--APRIL 20, 2004
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Year 2005
Projects -----------------------------------------------
Power Users Water Users Reimb. Amount
----------------------------------------------------------------------------------------------------------------
Hoover.......................................................... 4.7 .............. 4.7
Parker/Davis.................................................... 1.6 .............. 1.6
Yuma Area Projects.............................................. .............. .............. ..............
-----------------------------------------------
Lower Colorado Region..................................... 6.2 .............. 6.2
===============================================
Grand Coulee.................................................... 2.9 .............. 2.9
-----------------------------------------------
Pacific Northwest Region.................................. 2.9 .............. 2.9
===============================================
Central Valley Project.......................................... 0.3 .............. 0.3
-----------------------------------------------
Mid-Pacific Region........................................ 0.3 .............. 0.3
===============================================
Great Plains Region............................................. .............. .............. ..............
===============================================
Colorado River Storage Project.................................. 1.5 0.6 2.1
-----------------------------------------------
Upper Colorado Region..................................... 1.5 0.6 2.1
===============================================
TOTALS.................................................... 10.8 0.6 11.4
----------------------------------------------------------------------------------------------------------------
These figures are generated from the best available information at
the current time. They are preliminary estimates which will be further
reviewed within the Bureau.
After further refinement, the guards and surveillance costs remain
at $18 million. There was a greater need identified with an armed
response force at Grand Coulee, a National Critical Infrastructure
facility. This was offset by changing needs at other facilities.
After further review, the overall total reimbursable amount is now
$17 million, based upon project cost allocations. The above table does
not factor into account Mid-Pacific and Great Plains Region's shift to
reimbursability, although the customers in these regions had been
apprised that they would be subject to this new reimbursability policy.
The table below clarifies the costs by region, as well as including
the updated costs for guards and surveillance.
REIMBURSABILITY OF GUARD COSTS--AUGUST 4, 2004
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Year 2005
Projects -----------------------------------------------
Power Users Water Users Reimb. Amount
----------------------------------------------------------------------------------------------------------------
Hoover.......................................................... 3.9 .............. 3.9
Parker/Davis.................................................... 1.6 .............. 1.6
Yuma Area Projects.............................................. .............. .............. ..............
-----------------------------------------------
Lower Colorado Region..................................... 5.5 .............. 5.5
===============================================
Grand Coulee.................................................... 4.1 0.2 4.4
-----------------------------------------------
Pacific Northwest Region.................................. 4.1 0.2 4.4
===============================================
Central Valley Project.......................................... 0.4 2.1 2.5
-----------------------------------------------
Mid-Pacific Region........................................ 0.4 2.1 2.5
===============================================
Great Plains Region............................................. 1.3 1.0 2.3
===============================================
Colorado River Storage Project.................................. 1.4 0.6 2.0
-----------------------------------------------
Upper Colorado Region..................................... 1.4 0.6 2.0
===============================================
TOTALS.................................................... 12.8 3.9 16.7
----------------------------------------------------------------------------------------------------------------
We will continue to refine these numbers as Reclamation's Security
Program continues to assess its vulnerabilities and take appropriate
measures. We will also work closely with our stakeholders to share data
and guidance in the areas of risk, and take the necessary responses to
ensure the delivery of water service to multiple water users.
Senator Domenici. Okay.
The Water 2025, first of all, I obviously applaud the
initiative. I want all Americans to become more aware of the
realities of the arid West and to better understand water needs
out there. At the same time, to be able to work cooperatively
with all of the entities involved out there, in conflict
resolution and reallocation needs and all of that, will be
extremely important.
As you mentioned, you're going out to Idaho this next
month. The Idaho legislature spent a fair amount of time
resolving, in the short term, for the short term, a growing
problem in an area of Idaho, but that's a good example of where
the Bureau can really be a facilitator and an assister. And
what I would hope you would do, when you find conflicts
impossible to resolve because of Federal legislative or
regulatory impediments, that you'd come to us and let us know
about them so that we might assist you in removing those
impediments.
The reality check in the West, if this continues, is that
we may have to change some law, we may have to rethink where we
are. It isn't a matter of just cutting the slices of the pie
thinner; we might need to enlarge the pie a bit. And that is a
reality that we're all going to have to face.
I think the chairman spoke to that when he talked about
budgets, and we need to know those kinds of things, because I'm
looking at Animas-La Plata. It was 1982, and I was a freshman
Congressman when I assisted a Congressman from Colorado in this
initiative. Do the math. Idaho can't wait 30 years for a
decision out of Washington, nor can New Mexico, when it comes
to drought and water resources.
But that's what happened in Animas-La Plata. It's nearly 30
years since that idea went on the books and began to be a
motivator of public policy, and I just happen to think that's
an interesting reality check at a time when we're seeing
unprecedented dry numbers.
Thank you, Mr. Chairman.
John, thank you.
Senator Domenici. Thank you very much, Senator. I greatly
appreciate your participation.
I have about five questions. A couple of them are
parochial, some are not.
Senator Craig, I don't know whether my observation
regarding improving the use of water by farmers applies to your
State, but I want to suggest sometimes there are issues that we
don't quite know, in the bureaucracy of the government, where
they fit. So since they don't exactly fit, nothing's done.
I believe that farmers could improve the system whereby
they apply water, and save a lot of water in the process, by
building systems that use the water better, those systems where
you feed by a drip system, or you feed by an underground system
that delivers the water, or a sprinkler system. And it seems to
me that one reason the farmer doesn't do it is because it costs
a lot. Now, I wonder if you might seek, in your official
capacity, an analysis of whether tax relief for the farmer who
enhances the application and use of water in a field of
agriculture.
I know a farmer in New Mexico that is a very progressive
farmer, but he also has money. And he spent a huge amount of
money to make his water go further and to make sure that the
application to the soil used far less water to get the job
done. He came to see us, and we were talking about this
approach, about tax credit of some type, and he quickly said,
``Isn't it too bad that I've already made my expenditure before
you consider this idea of giving us some kind of tax credit.''
I would wonder--this may be a pipe dream, but I wonder if
you would use your official hat to ask the Treasury Department
and those who engage in agricultural funding whether this makes
any sense, and get that for us.
Commissioner Keys. Mr. Chairman, your suggestion makes all
the sense in the world for us, because we are currently
launched off on three major efforts on water conservation. The
first one is one with the existing programs that we have in
Reclamation, for which we have four or five already. And
certainly we work mightily to not let the new initiative take
monies away from those, so that we can keep working very
closely with the farmers on our districts. The second effort is
Water 2025, itself.
Senator Domenici. Yes.
Commissioner Keys. That is concentrating on trying to
stretch those existing water supplies so that the new demands
for water don't place undue pressure on the water supplies for
our irrigation projects.
If you look across the Western United States, about 80
percent of our water rights are held for irrigation.
Senator Domenici. Yes.
Commissioner Keys. If we can do the conservation work and
provide water for a lot of the new demands that are out there,
we can keep that pressure off of the need for conversion, and
that's one of the big goals of 2025.
The third thing that we're doing is working very closely
with Department of Agriculture. Reclamation's main focus is on
the delivery facilities, the dams, the canals, the control
facilities. We're working very closely with agriculture for the
on-farm stuff.
Senator Domenici. Well, they're not----
Commissioner Keys. Your suggestion for a tax relief would
fit very well into that, and we would certainly explore that
with you and with Treasury.
Senator Domenici. It may very well be that it fits one of
the other agencies better than yours, but I'm not really
interested in that; I'm interested in somebody finding out
whether it makes sense to the farmer and makes sense to the
Treasury. So if you would start that initiative, I----
Commissioner Keys. Mr. Chairman, we will take the lead in
talking with Treasury and working with you and trying to see
what we can do there.
Senator Domenici. It may very well be that it doesn't work.
Middle Rio Grande, in New Mexico. First, I appreciate your
support of our Endangered Species Collaborative Program with
reference to that. I acknowledge your 2004 spending and the
list of agencies and groups who have signed onto the memorandum
of understanding. I'm very pleased that some of the tribes have
signed up as participants.
We spoke yesterday--``we,'' being you and our office, and
you brought other people with you--we spoke about the idea of
sanctuaries, which I came up with, for minnows, these
endangered minnows. And I understand that the details are still
being flushed out, and I look forward to your follow-up. There
is a deficit of $1.5 million in your 2004 plan to do all that
you have on the list of proposed activities for the year.
Now, Senator Craig, I might tell you that we have an
endangered species called a silvery minnow, and it generally
saves itself and prevails by being very far downstream in a
sandy, sandy river, so that we lose thousands of acres in
carrying the water from upstream to the bottom, low stream in
order to get it to the minnow's habitat. The idea of a
sanctuary would be to build ponds upstream, where there is
plenty of water, and let the water go in and out so you don't
lose any, and prepare that water in a way that would fit the
minnow, and then do what I thought of and recommended for a
year and a half, that's take the water to the minnow--no, take
the minnow to the water, instead of the reverse, of taking the
water to the minnow.
So I want to ask you, how do you plan to prioritize what
can be done this year? And what kind of growing season do you
see for this year for the farmers in my State? Will there be
enough water for them? And where do the minnow sanctuaries
figure into this?
Commissioner Keys. Mr. Chairman, on the minnow sanctuary,
we have a draft plan and a draft timeline for implementing that
plan that we're meeting with your staff on to flesh out. There
are four concerns that we're working with.
Senator Domenici. Yes.
Commissioner Keys. The turbidity, the biological opinion,
the land area that it takes--those things, we're working on. We
think that it will probably take about 2 years to get that
done, and we're trying to find ways to accelerate that if we
can.
On the water year for the Basin, currently Mr. Craig's
characterization of his State, for everything shutting off in
March, has been true almost all over the West. We have seen all
of our projected runoff figures drop about 20 percent since the
first of March, and that is true in the Middle Rio Grande. We
started out in the high 80 percent range, and we're below 70
percent now.
I would tell you that we have enough water identified to
meet the requirements of the minnow for this year and to meet
the requirements for the prior and paramount rights of the
Pueblos. In looking at the water supply for the Middle Rio
Grande Water Conservancy District, it appears that they have
water to take them into and maybe through July, and then they
may be out of water. We're working with some of the Water 2025
monies to do conservation projects on that district and seeing
if there are not some ways that we can stretch that supply.
Senator Domenici. I have a very lengthy question about
Animas-La Plata. I will submit it.
For the last 2 years, this committee funded the
rehabilitation of the Middle Rio Grande levies. What's the
status of the rehabilitation?
Commissioner Keys. Mr. Chairman, we are on schedule with
that 10-year program that we discussed with you a couple of
years ago. Our budget this year requests adequate money to keep
us on that schedule. We are requesting about $11 million for
those eight or ten levies that we are working with there.
Senator Domenici. I have a Western Water Initiative
question, and I have a contracting-out question.
I'd like to talk about two issues that I think we ought to
be worried about that come within the purview of seeing if we
can get more water from existing sources that might help with
the problem.
In my State, Senator Craig, there is a huge basin called
the Tularosa Basin. It's a salty water, underground basin. And
on the edges, you can get it, just by going there and spooning
it out. It's, in some places, not so salty; in other places,
very salty. But I would submit that with the situation we've
got, that somebody ought to take a lead in the desalinization.
If we could desalinate that water, we would have huge
quantities of water to move from that area to arid parts of New
Mexico and maybe even some other States.
So I think that you're aware of this issue. The schedules
have slipped, such that an additional $1.8 million will be
needed for the Tularosa Basin construction, and at least $7
million for 2005. Have you been aware of the funding issues?
And can you commit to bringing me a solution soon so that the
partnership with ONR and DOE can be maintained?
Commissioner Keys. Mr. Chairman, I am aware of that
situation, and, yes, we can craft a solution that would provide
the necessary money in 2004, and then we would work with you on
the funding for 2005.
Senator Domenici. Well, I don't know what you think about
it, but I would submit to my friend, Senator Craig, that with
our huge capacity and technology, it would seem rather
unfortunate if, in the midst of a drought, if we had this huge
underground basin right in the middle of the West, if we didn't
set out sights using the best scientists and technologists to
see if we can clean some of that up so we could use it,
especially in the agriculture field.
And my last one has to do with another source of saving
water. That has to do with the salt cedar. This was brought to
the West to help erosion. Unfortunately, there has been a
considerable drain on the scarce water supply, approximately
2.4 million acre-feet of water each year. I'm aware that you
are using mechanical and chemical methods of removing them, and
that you are replacing them with vegetation. Where are you with
progress in this area? Is there a threat of erosion? And where
are you with finding and certifying a biological control? Were
you part of the recent Salt Cedar Conference in New Mexico?
Commissioner Keys. Mr. Chairman, yes, we were part of that
conference. I would tell you that the Department of the
Interior has a large initiative on invasive species, and a
large part of that initiative is on the salt cedar. And
Reclamation is taking the lead for Interior in the efforts on
salt cedar. We are part of that effort in Albuquerque earlier
this year, and certainly we are looking at different ways to do
it.
You talked about the mechanical means. That is the
traditional way of doing it. We have recently received approval
to release the bugs. They have found a bug that eats salt
cedar. And the problem is, they didn't know what he would eat
after he ate up all of the salt cedar. And they think now that
they have an answer to that. I think they think he'll drop
dead. But we'll have to wait and see.
But there are provisions----
Senator Craig. John----
Commissioner Keys [continuing]. For releasing him----
Senator Craig [continuing]. It's possible that when the
salt cedar is gone, he might become an endangered species.
Commissioner Keys. Oh, my goodness.
Senator Craig. There would be some who would be advocates
of that, so be careful of the word use ``drop dead,'' okay?
Don't mention it.
Commissioner Keys. But it has been approved for release,
and there are a number of control areas underway where they're
trying that.
On the erosion issue, it has been something that we're
paying a large amount of attention to, and there are a number
of ways--a number of different vegetations that you can put
there that will control that erosion and not create the
problems that the salt cedar did.
Senator Domenici. Well, I just want to say--and I know that
my friend, Senator Craig--and if we had the rest of this
committee here, I think they would all agree that we can't
ignore the problem of saving water that is being wasted, and
converting water that is not too far from usable if it's there
in large quantities, that we clearly ought to spend some money
trying to fix it.
I know if Israel is worried about it, we're just as bad
off. It's just that they're a lot smaller, and they can focus;
and we're a lot bigger, but, I'll tell you, if you saw a map of
the United States, like I have, that showed the salty
underground water repositories in America, you would be shocked
at how much there is. Even over in your side, there's more than
you think. But in my State, there just happens to be this
monster underground basin, and I think it's worth some money.
And we're sitting around rationing what we've got, and it might
be equally as important to try to make what we have more
functional. And I intend to pursue that with vigor. It's going
to take some money, but so what? We've got the United States
Navy working on it, incidentally. You know that.
Commissioner Keys. Yes, sir.
Senator Domenici. They have a very big interest, and
they've got a major project going in this basin.
I have no further questions. Do you have any, Senator
Craig?
Senator Craig. Just a parting observation. Your early
discussion about conservation and water management is obviously
going to be critical during shortages. And even with any
abundance, with the kind of growth factors we're seeing in the
western high-desert States, clearly management's going to be
important.
Interestingly enough, management and new ideas and new
alternatives have consequences. The Commissioner is going to
Idaho to look at the consequence. In the Snake River Plain
Aquifer, when you use the old techniques of flood irrigation,
Mr. Chairman, you once fed the aquifer directly by flowing
water out over the ground. Starting in the 1970's, because of
the Clean Water Act and because of PMDLs and all of that kind
of thing, they shifted from flood irrigation to sprinkler
irrigation, and that reduced the amount of water going into the
aquifer.
Senator Domenici. Right.
Senator Craig. Now, that water flows out of the aquifer at
a given point. And in the 1940's and the 1950's, people filed
on the excessive flow as their source of water. It was an
abnormal flow from normal flows----
Senator Domenici. Water rights.
Senator Craig. They developed water rights. Now that we are
using the new technologies and sprinkler irrigation, and, some
instances, drip, the water is no longer flowing underground
into the aquifer and out to the point source that was filed on.
So the value of 2025 is what we're calling it?
Commissioner Keys. Yes.
Senator Craig. Those kinds of initiatives that not only
look at how you mitigate, but try to understand what the
consequence of mitigation will produce, is going to be every
bit as important, because we have traditional, we have western
water law, we have fixed mandates, we have a whole complication
of things that tie up inside this marvelous resource. And there
are consequences for action and acts when the good intention is
made. Now, when you dry these things up, are we going to dry up
a wetland by that action, although it's positive? A wetland
that was created by man's presence, not by Mother Nature, and
on and on and on and on.
Anyway, point made. It's interesting that as we work
towards solution, we're now trying to find a way to solve a
problem that is created by a positive action on the part of
Idaho irrigators.
Commissioner Keys. Mr. Craig, one of the real cornerstones
of Water 2025 is looking at institutional barriers that are
there, law-wise or whatever, trying to find ways to make it
easier to address some of the problems you're talking about,
especially the one on using government facilities to convey
private water. The old Warren Act issue.
Senator Craig. Um-hum.
Commissioner Keys. And certainly we may have to come back
for some help on the Warren Act one of these times. But we're
looking at other laws that we can use to make that happen, like
the 1906 Townsite Act----
Senator Craig. Yeah.
Commissioner Keys [continuing]. Or the 30--Section 14 of
the 1939 act, or the 1958 act, trying to find ways to make that
happen. In the end, we still may have to come back and work
with you folks to see how we might change that Warren Act so
that it's more compatible.
Senator Craig. Well, we think you're headed in the right
direction about those analyses. Thank you.
ADDITIONAL COMMITTEE QUESTIONS
Senator Domenici. I thank you, Commissioner. We're finished
with you, and----
Commissioner Keys. Okay.
Senator Domenici [continuing]. We'll be working with you,
and thank you for your excellent testimony, and you were very
well prepared.
Commissioner Keys. Thank you, Senator.
[The following questions were not asked at the hearing, but
were submitted to the Department for response subsequent to the
hearing:]
Questions Submitted by Senator Harry Reid
WATER 2025
Question. Commissioner Keys, we find that the budget request has
effectively eliminated funding for Title XVI projects with the
exception of ongoing projects. Even with that limited commitment, the
level of funding has decreased. At the same time, the budget for Water
2025 seeks almost $13 million in increases. What share of this increase
will be dedicated to reuse projects and/or research projects?
Answer. Improving desalination technology is important to purifying
salty and brackish waters to increase their utility. Water 2025's goal
is to aid technological advances and reduce the high costs that slow
adoption of new desalination technologies. The fiscal year 2005 Water
2025 budget includes $4.0 million for cost-shared demonstration
projects for desalination. In addition, approximately $1.5 million for
research relevant to desalination is included in the Title XVI budget.
WATER 2025/TITLE XVI
Question. We also note that the bulk of the request is dedicated to
conservation, efficiency, and markets and collaboration. Please explain
how the Bureau intends to distribute these resources within the Water
2025 program?
Answer. With the support of Congress in the fiscal year 2004
Budget, Secretary Norton has moved forward with the Western Water
Initiative (precursor to Water 2025) Challenge Grant program that seeks
projects that make real progress towards avoiding water crises in the
West. The Challenge Grant Program requires a 50-50 cost share and
targets irrigation and water districts in the West who are willing to
leverage their money and resources with the Federal Government on
projects that make more efficient and effective use of existing water
supplies.
For example, Water 2025 is seeking proposals that will retrofit and
modernize existing water delivery facilities, and implement and use
water banks and water markets as mechanisms to use our existing water
more efficiently and effectively, providing such use is recognized by
applicable State and Federal laws and authorities.
Through the development of specific criteria and requirements,
these projects and activities will focus, first and foremost on those
areas where the competing demands for water by people and the
environment mean that crises have the highest likelihood of occurring--
based upon demographic or population trends combined with endangered
species needs.
TITLE XVI WATER RECLAMATION AND REUSE PROGRAM
Question. What role does the Bureau see itself playing in the
advancement of research into recycling?
Answer. Reclamation has requested $1.53 million for agency-wide
activities associated with the Title XVI Water Reclamation and Reuse
Program. This program allows Reclamation to conduct research on the
treatment of impaired waters, including desalting, and to provide
technical and financial assistance to local water agencies interested
in investigating the potential for reusing impaired waters. In prior
years, the program was focused on providing assistance to local
agencies. In fiscal year 2005, the program's main emphasis will be on
conducting research. The objective of this research will be to develop
technologies that have broad application and that will help bring down
the cost of treating all types of impaired water, including municipal
and industrial wastewater used in water recycling.
Question. We note that the Water and Energy Management and
Development account includes support for desalination research as part
of a new initiative begun in 2004. However, the funding for this
account has been reduced from $4 million to $1.5 million to support the
development of high priority recycling and desalination projects as
well as research. How does this reduction affect the ability to
maintain research project priorities underway and identify new needs
that Congress has identified? (Page 56 of the justification)
Answer. Reclamation's fiscal year 2005 Title XVI Water Reclamation
and Reuse Program funding request for agency-wide activities is $1.53
million. This is $100,000 more than was requested in fiscal year 2004.
This account was increased to nearly $4.0 million due to Congressional
action. Among other activities, Reclamation was directed to use these
additional funds to continue support for the Water Reuse Foundation
Research Program, which is focused primarily on research associated
with the recycling of municipal and industrial wastewater. That
research is currently underway and is expected to continue well into
next year. The $1.53 million requested for fiscal year 2005 for agency-
wide Title XVI activities would be used to continue research on
developing low-cost treatment technologies needed to make all types of
impaired water suitable for beneficial use, including wastewater.
DESALINATION
Question. Based on your response to question ``What role does the
Bureau see itself playing in the advancement of research into
recycling?'' How are we to interpret the Bureau's request of $100,000
for desalination research from a current year level of $7.7 million?
Answer. The administration continues to support desalination and
water purification related research within the limitations of available
funding, We also continue to support the development of other water
supply and water management technologies that will ensure that
Reclamation and other western water managers have a complete set of
tools to tackle water supply problems. In fiscal year 2005, a request
for desalination research and other water purification technologies has
been submitted under the five programs as summarized in the following
table:
------------------------------------------------------------------------
Approximate
Fiscal Year
2005 Scope of Desalination and
Program Allocation for Other Water Purification
Desalination Related R&D
Related R&D
------------------------------------------------------------------------
WATER 2025.................. $4,000,000 External R&D and
demonstration projects.
Water Reclamation and Reuse $1,500,000 External and internal R&D.
Program (Title XVI).
Desalination and Water $100,000 External R&D.
Purification Research
Program (a.k.a.
Desalination Act).
Science and Technology $1,200,000 Internal R&D Reclamation-
Program. wide.
Colorado River Basin $781,000 Internal R&D to reduce the
Salinity Control Project costs of the Yuma
(Title I). Desalting Plant.
----------------
Total................. $7,581,000
------------------------------------------------------------------------
The $7.375 million enacted under the Desalination and Water
Purification Program for fiscal year 2004 specified that $4.0 million
shall be used for the construction of the Tularosa Basin National
Desalination Research Facility. The reduction between fiscal year 2004-
fiscal year 2005 in the Desalination and Water Purification Program
stems from the uncertainty of whether the Desalination Research Act
will be reauthorized or extended and the uncertainty as to whether
other authorities would allow us to continue this national program. The
reduction has been partially offset by the increased allocation under
Water 2025. In the event of no reauthorization of the Desalination
Research Act, the Water Reclamation and Reuse Program (Title XVI)
provides Reclamation with the general authority to continue to fund
desalination research and demonstration activities.
Question. What kind of work will not continue under the proposed
budget cut? (Page 49 of the justification)
Answer. For fiscal year 2005, the Water 2025 program has requested
$4 million for desalination research with an emphasis on demonstration.
The following work begun in fiscal year 2004 will continue under the
fiscal year 2005 budget request: external research projects (bench-
scale, pilot-scale, and demonstration to increase water supplies,
reduce desalination costs, reduce concentrate management issues, and to
increase energy efficiency), technology transfer (desalination
clearinghouse, desalination research road mapping efforts with Sandia
National Labs and the guidance of the National Academies of Science,
and an internal study of the potential use of advanced water treatment
technologies as a resource to create net new water supplies), and
partnerships and collaborations (including the Water Reclamation,
Recycling, and Reuse Task Force).
TITLE XVI WATER RECLAMATION AND REUSE PROGRAM
Question. Overall, the West continues to face serious challenges in
the development of alternative water supplies. A hallmark of
confronting this challenge has been a strong Federal partnership in the
form of Title XVI. Are we to assume that the Bureau no longer believes
that a Federal partnership is advisable?
Answer. Title XVI funding has helped local agencies offset the cost
to plan, design, and construct water reclamation and reuse projects.
These projects, when completed, will help local water agencies meet
some of their existing and future water demand. Reclamation will
continue to support those ongoing construction projects that were
included in the President's budget request in prior years. We would
rather focus resources on completing these projects, so that project
benefits may be realized, rather than diffuse resources in support of
the many new proposed Title XVI projects, many of which were developed
with little, if any, Reclamation involvement.
Question. If so, please explain the basis of this decision and how
you propose to fill the gap created by this action.
Answer. Through the Title XVI Water Reclamation and Reuse Program,
Reclamation has helped demonstrate that water recycling is a successful
means of increasing a municipality's water supply. Water recycling
alone, however, will not be able to meet the anticipated future demand
in all areas of the West, and other resources management strategies,
such as conservation and desalination, will need to be pursued.
Reclamation intends to focus its future new Title XVI activities on the
development of treatment technologies that can be used to make all
types of impaired water available for use, regardless of geographic
location.
______
Questions Submitted by Senator Byron L. Dorgan
FORT YATES INTAKE STRUCTURE FAILURE
Question. Mr. Keys, I am know you are familiar with the water
crisis at Fort Yates when it experienced loss of water due to extended
droughts and low lake levels on Lake Oahe. If unaddressed, low lake
levels on both Lake Oahe and Lake Sakakawea will continue to devastate
local economies and endanger communities that depend on this water
source.
What action will the Bureau of Reclamation take to resolve this
issue for communities who depend on these lakes for their water supply?
Answer. We recognize that the drought conditions throughout the
Missouri River system are having significant impacts on community water
supplies. However, Reclamation's authority to address these issues is
limited by the Dakota Water Resources Act of 2000 to the design,
construction, operation, maintenance and replacement of the Indian
municipal, rural, and industrial (MR&I) water supply facilities. Given
current drought conditions, particular attention is being devoted to
the Fort Berthold and Standing Rock MR&I systems which rely on the
Missouri River as their water supply source. Reclamation became
involved with development of the rural water system on Standing Rock
with the passage of the Garrison Diversion Unit Reformulation Act of
1986. Reclamation is currently working with the Standing Rock Sioux
Tribe on a contingency plan for responding to possible future drought
related impacts to their water system.
With respect to the water crisis at Fort Yates, Reclamation
completed the installation of a new interim intake for the Fort Yates
water treatment plant. The intake was put into operation on March 16,
2004, and has operated reliably since that time. Reclamation expects
this intake to provide water until decisions can be made to determine
the water treatment plant and intake option that will serve the long-
term needs of the Standing Rock MR&I system. Reclamation has also
secured funding to investigate the feasibility of constructing
horizontal wells as a replacement intake for the Fort Yates and Wakpala
water treatment plants. These investigations began the week of April
19, 2004.
Question. Has there been any movement within your agency to find
funds that have not been used and reallocate them to the tribal MR&I
funding that had to be used during the water supply crisis last year?
Answer. As noted in our letter to you dated April 27, 2004,
Reclamation is monitoring other programs for potential surplus funding.
DAKOTA WATER RESOURCES ACT
Question. Funding for the Dakota Water Resources Act is a top
priority for me and for my constituents. Although Congress has promised
to provide $200 million for Indian municipal, rural and industrial
water needs and $200 million for State MR&I, the current budget fails
to come anywhere close to what will be needed for the next fiscal year
and provides only a total of $4.969 million for MR&I ($2.485 for State
MR&I, including NAWS, and $2.484 for Tribal MR&I).
Given the fact that this program is severely under funded, what do
you plan to do to keep up with the current needs of the program, in
light of expected price increases in the major programs if delays
occur?
Answer. It was recognized during the development of the Dakota
Water Resources Act that funding would be provided over a number of
years. To address the expected price increases caused by multi-year
funding, the legislation authorized both the State and Indian MR&I
project ceilings to be adjusted through the application of engineering
cost indices. This measure, contained in Section 10, will account for
ordinary increases in construction costs and ensure the appropriation
ceiling continues to be adjusted to keep up with the current needs of
the program.
Reclamation recognizes that the State and the Tribes have
construction capability that exceeds the funding level proposed by the
President in the fiscal year 2005 budget. Furthermore, we understand
that recent budget levels have not resulted in project accomplishment
that keeps pace with the annual indexing of the appropriation ceiling
previously described. However, the President's budget request seeks to
continue progress on Garrison Diversion Unit, and other on-going
construction projects throughout the agency, within the budget targets
that have been established.
RED RIVER VALLEY WATER SUPPLY PROJECT
Question. I am also very concerned about the status of the Red
River Valley studies that will provide water to eastern North Dakota. I
have heard some concerns that the BOR is scaling back on some of the
key items it had planned on doing and cutting back on the
investigations needed to prepare a comprehensive study.
Can you update me on the status of these studies and assure me that
the Bureau isn't taking shortcuts in this important matter?
Answer. The purpose of the Red River Valley Water Supply Project is
to meet the comprehensive water quality and quantity needs of the Red
River Valley in North Dakota. As directed by the Dakota Water Resource
Act of 2000 (DWRA), Reclamation is conducting analyses to identify
future water needs for the Red River Valley and options for meeting
those needs. The DWRA requires an analysis of Municipal Rural and
Industrial Needs, Aquatic Environment Needs, Recreation Needs, Water
Quality Needs and Water Conservation Needs. It also mandates two
reports, the Needs and Options Report and an Environmental Impact
Statement (EIS). Reclamation is the sole lead for analysis of Needs and
Options and will complete the Needs and Options Report by November 30,
2005. In accordance with DWRA, Reclamation and the State of North
Dakota are preparing the EIS required to evaluate the environmental
impacts of alternatives identified in the Needs and Options Report. The
Draft EIS will be completed by December 31, 2005.
Reclamation is placing a high priority on conducting all
investigations required for the Needs and Options Report and the EIS
using objective, scientifically sound analyses. The work needed to
complete both reports is on schedule and being conducted in a rigorous
and scientific manner. Reclamation is taking no shortcuts in the
comprehensive evaluation of water quality and quantity needs of the Red
River Valley, as well as, options for meeting those needs, and the
environmental analysis required under NEPA and DWRA.
PICK-SLOAN HYDROPOWER
Question. In Pick-Sloan the Bureau appears to be adding staff for
hydropower activities. Please explain.
Answer. Reclamation is adding staff for hydropower activities in
Pick-Sloan. Reclamation has discussed this with the preference power
customers on several occasions and they agree with our staffing
proposal. This staff will perform operation and maintenance to ensure
the necessary reliability and availability of the 20 Reclamation Pick-
Sloan Powerplants. Reclamation is facing a 40 percent attrition rate in
hydropower staffing in the next 5 years and preparation must be made
for this. Reclamation continues to deliver power at a cost that is less
than the production costs of three-fourths of the other Federal and
non-Federal hydropower facilities in the United States and with
reliability twice that of the industry average. The impact to the power
rate by adding this staff is minimal and Pick-Sloan customers will
continue to benefit from the low wholesale rates. Furthermore,
attention to such long-term operation and maintenance issues is in line
with the recommendations from the 2003 re-PART of Reclamation's
hydropower program, which reiterated the need to engage in long-term
planning and act with foresight in managing its hydropower facilities.
Question. In addition, where are these employees being placed both
geographically and as between technical field positions or
administrative/policy and review positions?
Answer. As discussed with and agreed to by the preference power
customers, Reclamation filled three positions last year: two
apprentices in Wyoming, and one power facility manager at the Green
Mountain powerplant in Colorado. In addition, by fiscal year 2006, we
are in agreement to hire three apprentices and one O&M manager at the
Flatiron powerplant in Colorado, and two engineering positions in the
Great Plains Regional Office. These positions will be working on
powerplant O&M.
Question. What cost saving measures is the Bureau planning to
undertake?
Answer. Reclamation continues to undertake cost saving measures
such as further standardizing O&M business practices and procedures and
continually seeking measures to improve the efficiency of water use and
power generation. Reclamation has been successful in doing this through
changes in operations and installation of more efficient equipment.
Question. Is the Bureau attempting to coordinate activities with
other Federal agencies to avoid duplication of plant equipment and
services, e.g., WAPA and Corps of Engineers?
Answer. Reclamation, in conjunction with other Federal and State
agencies, is utilizing the same microwave and radio communication
systems. This has eliminated equipment duplication and generated cost
savings. Reclamation coordinates monthly powerplant and transmission
line outages with WAPA to avoid unnecessary outages and to allow both
agencies to schedule work during each other's outages. Reclamation and
WAPA continue to communicate in an effort to avoid duplication and
reduce costs. Reclamation-wide coordination of asset management and
facility condition assessment activities has occurred with the Corps of
Engineers, Hydro Quebec, and Bonneville Power Administration.
Reclamation's Great Plains Region has recently revised its information
sharing agreement with its federal power customers. The new agreement
includes Reclamation, the Corps of Engineers, WAPA, as well as the
power customers. Through the agreement the parties coordinate budget,
operation, and maintenance activities.
SITE SECURITY
Question. The Bureau is proposing to spend $43 million for site
security, including $12 million which will be reimbursable from Federal
power customers. These appear to be annual costs and not one-time
expenses.
Since these multi-purpose projects are national assets, benefiting
millions of Americans, why are they reimbursable from power customers?
Answer. Beginning in fiscal year 2005, annual costs associated with
activities for guarding our facilities will be treated as project O&M
costs subject to reimbursability based upon project cost allocations
and consistent with prior practices. The project beneficiaries who will
be assigned these costs will be primarily power customers, water
districts and some M&I water contractors.
Reclamation recognizes there are challenges ahead of us, such as
working with our stakeholders in analyzing security related O&M costs
to determine the beneficiary's reimbursable obligation in fiscal year
2005 consistent with project specific authorizations and contracts.
Question. Why has the Bureau changed its existing policy on
reimbursability and why should the power customers be required to pay
these costs?
Answer. Between September 11, 2001 and September 30, 2004,
Reclamation has or will spend $124 million in anti-terrorism dollars,
which include guard and surveillance activities.
Reclamation's existing policy has always stated that upon project
construction completion, the responsibility of O&M of single-purpose
facilities transfers to the water-user entities responsible for the
project's construction costs. Beginning in fiscal year 2005, annual
costs associated with activities for guarding our facilities will be
treated as project O&M costs subject to reimbursability based upon
project cost allocations.
The majority of Reclamation's expenditures for anti-terrorism
measures, such as security reviews and subsequent implementation of
anti-terrorism measures as a result of these reviews, are still
considered non-reimbursable expenditures.
HYDROPOWER
Question. The budget proposes that hydropower customers assume the
cost of research and development expenses of the science and technology
program. This program has always been a non-reimbursable activity of
the Bureau.
Why is the Bureau adding yet more costs to hydropower users?
Answer. As a result of the Reclamation Science and Technology
Program Assessment Rating Tool (PART) review by the Office of
Management and Budget (OMB), we believe that it is appropriate to
include hydropower research and development expenses as reimbursable
costs in the Power Marketing Administrations' rates since the power
customers directly benefit from the successes of Reclamation's
hydropower research and development program related to hydropower.
These research developments have resulted in significant cost savings
to project customers.
Question. Are there any activities with respect to reliability that
you are not undertaking that you believe are appropriate?
Answer. Reclamation continues to assess the reliability and long-
term viability of our generating facilities. We believe that we are
doing everything that is appropriate at this time. We have recently
conducted a condition assessment of our major equipment and have found
that 46 percent of our major power components are in poor condition. As
a result of the 2003 re-assessment of the PART on hydropower, we have
revised our long-term performance measures and goals, and aim to reduce
this percentage to 40 percent by 2014. Reducing the number of
components rated in poor condition will increase generating
reliability, and help avoid costly unplanned maintenance and
replacement due to component failure. We will be scheduling funding to
address this issue over the next several years to assure that our
plants remain reliable. Another area we are evaluating is the
responsiveness of our governors and excitation systems. Many of our
governors are mechanical and as these governors are replaced, we are
looking at replacing them with digital equipment, which improves our
unit's responsiveness during periods of system distress.
Finally, North American Electric Reliability Council (NERC) and
Western Electricity Coordinating Council (WECC) policy require
generation owners to perform reactive capability and limit verification
of generators with a capacity of 10 megawatts or greater every 5 years.
The policy further requires dynamic testing, maintenance, and
calibration of voltage regulators, limit functions, power system
stabilizers, and governor controls. Also, NERC and WECC policy require
organizations to develop and maintain documented ratings of power
equipment including powerplant equipment. The ratings must be
consistent with documented rating methodology. Reclamation is striving
to meet these requirements.
FIVE-YEAR EXPENDITURES
Question. Please provide a specific breakdown of expenditures
during the past 5 years by function and authorized project purposes.
Answer. The Bureau appreciates the continued support the committee
has provided over the years. The information requested, expenditures by
function and authorized project purpose for the past 5 years, is
voluminous. We would welcome the opportunity to discuss this request
further with the committee staff and tailor the response to ensure it
is suitable and useful.
Question. I can be more specific, but it turns into three
questions. The answer to these three questions should be a chart,
probably with footnotes, explaining what has taken place with the
funding provided. It should also show how they applied underfinancing
to the project. Hope this helps.
How much money has been allocated, and spent, on the MR&I program
for the past 5 years?
Answer. The attached worksheet provides the information you
requested on the MR&I program for the Great Plains Region.
PROJECTS WITH RURAL WATER COMPONENTS--WATER & RELATED RESOURCES \1\
[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal
1999 2000 2001 2002 2003 Fiscal Fiscal Fiscal Year Year 2004
Enacted/ Fiscal Year Enacted/ Fiscal Year Enacted/ Fiscal Year Enacted/ Fiscal Year Enacted/ Fiscal Year Year 2004 Year 2004 2004 Enacted
Final 1999 Final 2000 Final 2001 Final 2002 Final 2003 Enacted U/F \2\ Rescission \2\ w/ U/F
Expenditure Expenditures Expenditure Expenditures Expenditure Expenditures Expenditure Expenditures Expenditure Expenditures Budget Budget Budget and Resc.
Budget Budget Budget Budget Budget Budget
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Mni Wiconi Rural Water Component (only)......... *31,344 ............ *29,400 ............ *33,735 ............ *37,489 ............ *38,800 ............ *31,471 -2,547 -171 *28,753
32,706 32,131 28,429 27,306 31,715 31,681 34,234 34,080 37,115 36,011 ......... ......... .............. .........
Mid-Dakota Rural Water Component (only)........ *15,000 ............ *14,000 ............ *8,000 ............ *15,000 ............ *17,860 ............ *15,000 -1,450 -80 *13,490
19,208 19,195 13,882 13,847 9,539 9,459 14,384 14,020 17,297 17,295 ......... ......... .............. .........
Garrison Rural Water Component (only)........... *13,413 ............ *17,386 ............ *14,059 ............ *16,305 ............ *13,933 ............ *9,031 -63 -17 *8,951
17,966 14,566 17,431 16,678 13,707 13,456 14,349 14,183 11,214 11,134 ......... ......... .............. .........
Fort Peck Rural County Water System............. *1,500 ............ *3,000 ............ *1,500 ............ *0 ............ *0 ............ *0 *0 0 0
1,126 590 3,412 84 4,687 4,508 397 331 107 -3 ......... ......... .............. .........
Fort Peck Reservation/Dry Prairie............... *360 ............ *0 ............ *435 ............ *4,000 ............ *7,500 ............ *7,500 *-719 -40 6,741
550 329 221 199 578 500 3,697 3,627 4,840 4,492 ......... ......... .............. .........
Lewis and Clark Rural Water System.............. *0 ............ *0 ............ *1,000 ............ *2,000 ............ *7,000 ............ *17,000 *-1,630 -91 15,279
0 0 600 10 1,524 1,499 1,835 1,824 5,800 5,800 ......... ......... .............. .........
Perkins County Rural Water System............... *0 ............ *0 ............ *0 ............ *3,400 ............ *4,300 ............ *1,000 *-96 -5 899
0 0 0 0 0 0 3,077 3,050 3,622 3,619 ......... ......... .............. .........
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Rural Water Program--GREAT PLAINS REGION:
Enacted Budget............................ *61,617 ............ *63,786 ............ *58,729 ............ *78,194 ............ *89,393 ............ *81,002 *-6,505 *-404 *74,113
Expenditure Budget/Expenditures........... *71,556 *66,811 *63,975 *58,124 *61,750 *61,103 *71,973 *71,115 *79,995 *78,348 *0 *0 *0 *0
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* Figures marked with an *: see footnote 1.
\1\ Columns entitled ``Enacted/Final Expenditure Budget'': The first number in the column is marked with an asterisk to clearly show what was Enacted by Congress. The second number in the column, represents what was Enacted plus
adjustments which can include prior year funds, carryover, underfinancing, rescissions, and fund transfers.
Expenditure information must be compared to the Expenditure Budget in order to receive an accurate picture.
\2\ The columns entitled Fiscal Year 2004 U/F and Fiscal Year 2004 Rescission provide a breakdown of how the reductions associated with underfinancing and the rescission were applied.
In both instances, each project received an across-the-board reduction per the Fiscal Year 2004 Water and Energy Appropriation Act. For Garrison, the majority of the reductions were applied to the non MR&I components not shown on
the chart. No reductions were applied to the $6 million allocated to the construction MR&I program.
Question. Did the extra $10 million that was provided by Congress
in fiscal year 2004 get spent on the MR&I program?
Answer. The Great Plains Region's fiscal year 2004 Enacted MR&I
program was $81,917,000 which was $63,915,000 over the President's
requested amount of $18,002,000. Garrison was the only project that
received a Congressional write-in of $10 million. Therefore, the
following response is based on the assumption that the $10 million
referred to is related to Garrison. However, we would welcome the
opportunity to discuss this request further with the committee staff
and tailor the response to ensure it is suitable and useful. The fiscal
year 2004 President's request for the Garrison project included zero
dollars for MR&I construction and $3,031,000 for MR&I operation and
maintenance for the Tribal program. Of the additional $10 million
received for the Garrison project, $6 million was allocated for the
MR&I construction program (bringing the total Garrison MR&I program to
$9,031,000); $2 million was allocated for Red River Valley to complete
the studies and EIS on the schedule testified to in the December 2002
Senate Field Hearing; and $2 million was allocated to complete work at
the Arrowwood National Wildlife Refuge.
Question. If not, is there any likelihood of the same occurring in
fiscal year 2005?
Answer. If Congress provided additional funds for general Garrison
program purposes, we anticipate they would be allocated to the MR&I
programs.
DEPARTMENT OF DEFENSE--CIVIL
DEPARTMENT OF THE ARMY
Corps of Engineers--Civil
STATEMENT OF JOHN PAUL WOODLEY, JR., ASSISTANT
SECRETARY OF THE ARMY (CIVIL WORKS)
ACCOMPANIED BY LIEUTENANT GENERAL ROBERT B. FLOWERS, CHIEF OF ENGINEERS
Senator Domenici. Now, Senator Craig, I have to step out
with some constituents. I wonder if you would let Panel Two,
Mr. John Woodley, Assistant Secretary, and Lieutenant General
Robert Flowers--although he's not here, is that right? He'll be
here?--Chief of Engineers, U.S. Army Corps of Engineers. If
you'd start that, I'll be back very, very soon.
Senator Craig [presiding]. So if the second panel would
come forward, we'll proceed with testimony from the Army Corps.
Army first, yeah.
Well, thank you all very much. Assistant Secretary Woodley,
we appreciate you being here.
We'll allow you to proceed with your testimony, and then
we'll move to--I assume both you and the General are the ones
prepared for the testimony. Is that correct?
General Flowers. Yes, sir.
Senator Craig. All right, fine. Please proceed.
STATEMENT OF JOHN PAUL WOODLEY, JR.
Mr. Woodley. Mr. Chairman, I appreciate the opportunity to
testify before the subcommittee about the President's fiscal
year 2005 budget for the Civil Works function of the Army Corps
of Engineers.
I'm especially delighted to be accompanied this morning by
a very distinguished soldier, Lieutenant General Robert
Flowers, the 50th Chief of Engineers. Mr. Chairman, this is
General Flowers' last opportunity to appear before the
subcommittee, and so I think that should be made note of in the
record, and I'd like to express my particular appreciation, on
behalf of the President, for his very fine service as Chief of
Engineers.
May I also ask leave to summarize my statement and put a
complete statement----
Senator Craig. Yeah----
Mr. Woodley [continuing]. In the record?
Senator Craig [continuing]. Your full statements will
become a part of the committee record. Thank you.
Please proceed.
Mr. Woodley. Our total fiscal year 2005 Civil Works budget
is $4.2 billion, which is about the same as last year's Civil
Works budget request. This year, to develop the budget, we
began the use of a performance-based approach built around
programmatic goals for our eight business programs. This
approach, we feel, has and will continue in the future to
enable us to make the most effective use of the limited funding
available to us.
For new projects, the budget focuses on commercial
navigation, flood and storm damage reduction, and aquatic
ecosystem restoration. The budget directs substantial funding
to the ongoing construction projects that have among the
highest economic and environmental returns to the Nation. We
also have given priority to 11 projects that we are able to
complete in fiscal year 2005, and to eight projects that we
consider high-priority projects, and to a number of dam safety
and seepage correction projects.
Funding to plan or design new projects this year is
limited, and is targeted to the most productive study and
design activities, including five new studies, 23 design
efforts, and the current phases of ongoing studies, including
an expanded Louisiana Coastal Area study.
Mr. Chairman, the 2005 budget does not include a request
for funding for beach renourishment. Our view is that non-
Federal interests should carry out renourishment activities
once the initial construction of the beaches has been
completed. We have an exception to this, at a case in which we
are obliged to perform renourishment under a court order.
We have also asked for leave, to free up funding for
higher-priority needs, to cancel unobligated balances of
projects that may not be the best--the top investments, or, for
one reason or another, are not ready to proceed. This
recommended cancellation, if it's approved, would take effect
with the enactment of the fiscal year 2005 appropriations.
The budget also includes a number of initiatives for
operation and maintenance of our existing projects. We ask
leave to finance, up front, the operation and maintenance cost
of hydropower facilities, with funds provided by three Federal
Power Marketing Administrations. Second, we would ask to
accomplish recreation modernizations by using new fees and by
entering into planning and management partnerships. Third, we
would continue antiterrorist protection at key projects and
facilities. And finally, we ask to reserve a pool of funds for
unforeseen and urgent maintenance and repairs at key projects.
Mr. Chairman, I have three priorities in mind for the Civil
Works program during my time as Assistant Secretary. You will
see these priorities reflected, in part, in this budget, and I
believe to a greater extent in the next. One priority is to
develop the Civil Works budget and manage the program based on
objective performance measures. In that regard, General Flowers
and I have recently provided our Civil Works strategic plan to
the committee, and we look forward to working with you on
developing it further and hearing your views on it. A second
priority is to improve the analytical tools that we use for
water resource planning and decision-making. And my third
priority is to improve the effectiveness and efficiency of the
Corps' regulatory program, the primarily wetlands and
navigation regulatory program.
PREPARED STATEMENT
Mr. Chairman, this is a frugal budget that reflects the
priorities of a Nation at war. Understandably, and I will say
immediately, it does not fund all the good things that the
Corps of Engineers is capable of doing, but it does move ahead
with many important investments that will yield enormous
returns for the Nation next year and in the future.
Thank you, Mr. Chairman.
[The statement follows:]
Prepared Statement of John Paul Woodley, Jr.
Mr. Chairman and distinguished members of the subcommittee, thank
you for the opportunity to testify before the Energy and Water
Development Subcommittee of the Appropriations Committee and to present
the President's budget for the Civil Works program of the Army Corps of
Engineers for fiscal year 2005.
OVERVIEW OF FISCAL YEAR 2005 ARMY CIVIL WORKS BUDGET
The fiscal year 2005 budget for Army Civil Works provides funding
to continue the development and restoration of the Nation's water and
related resources, the operation and maintenance of existing
navigation, flood damage reduction, and multiple-purpose projects, the
protection of the Nation's regulated waters and wetlands, and the
cleanup of sites contaminated as a result of the Nation's early efforts
to develop atomic weapons.
The fiscal year 2005 budget for Army Civil Works includes new
discretionary funding requiring appropriations of $4.215 billion and an
estimated $4.132 billion in outlays from discretionary funding (see
Table 1). These figures are approximately the same as in the fiscal
year 2004 budget.
The new discretionary funding includes $610 million from the Harbor
Maintenance Trust Fund for harbor operation and maintenance and dredged
material disposal facility construction. The discretionary funding also
includes $115 million from the Inland Waterways Trust Fund for
construction and rehabilitation on the inland waterways.
The budget includes proposed appropriations language for direct
funding of hydropower facility operation and maintenance by Federal
power marketing administrations. New discretionary funding of $150
million would be derived from direct funding in fiscal year 2005. This
proposal is described in greater detail below.
Other sources of new discretionary funding include $3.303 billion
from the general fund and $37 million from Special Recreation User
Fees.
Additional program funding, over and above funding from the sources
requiring discretionary appropriations, is estimated at $437 million.
This total includes $71 million from the Bonneville Power
Administration (BPA) for operation and maintenance of hydropower
facilities in the Pacific Northwest, $287 million contributed by non-
Federal interests for their shares of project costs and for project-
related work, $63 million from the Coastal Wetlands Restoration Trust
Fund, and $16 million from miscellaneous permanent appropriations.
The budget proposes cancellation of at least $100 million of
previous discretionary budget authority. Net discretionary budget
authority, including this proposal and the direct funding proposal, is
$3.965 billion.
PERFORMANCE-BASED BUDGETING
Performance-based budgeting is one of the President's Management
Initiatives, and the one that is most central to the preparation of the
budget. For the Army Civil Works program, performance planning is built
around eight program areas: Navigation (including inland waterway
navigation and coastal channels and harbors); Flood and Storm Damage
Reduction (including from riverine flooding and coastal storms);
Environment (including aquatic ecosystem restoration, stewardship of
natural resources at operating projects, and the Formerly Utilized
Sites Remedial Action Program); Hydropower; Recreation; the Regulatory
Program, Emergency Management; and Water Supply (storage at existing
reservoirs).
The first element in our performance planning is a strategic plan,
which is required by the Government Performance and Results Act (GPRA).
I am happy to announce that on March 22, 2004, General Flowers and I
provided our strategic plan to the committees and subcommittees of
Congress responsible for water development authorizations and
appropriations, including this committee and subcommittee. This plan is
a work in progress. We will continue to work with the Office of
Management and Budget to establish program goals, objectives, and
performance measures that are called for by GPRA and that provide a
sound basis for setting performance targets and building future
budgets.
The second element in our performance planning is the use of a
government-wide process to assess program performance, which first was
instituted for the fiscal year 2004 budget. These assessments are
intended to improve the effectiveness of programs and to improve the
quality of their management and oversight. Five business programs,
program components, or sets of activities were assessed for the fiscal
year 2004 budget: the Hydropower program; the riverine flood damage
reduction component; the inland waterway navigation component; the
Emergency Management program; and wetlands-related activities apart
from the Regulatory Program. For fiscal year 2005, the Regulatory
Program was assessed. Two of the programs--the Regulatory Program and
Emergency Management--have been rated as moderately effective and have
received substantial funding in the fiscal year 2005 budget.
The third element is to develop the Civil Works budget and manage
the program based on objective performance measures. The fiscal year
2005 budget for Army Civil Works focuses funding on the most productive
investments. This is reflected, for instance, in the allocation of
funding to the most productive design activities, construction
projects, and maintenance activities. At the same time, I recognize
that we can do a better job of performance-based budgeting, and one of
my priorities is to improve our capabilities in this area. I have
placed a priority on making significant progress on further development
of sound performance measures for each business program and on using
the measures to build our fiscal year 2006 budget. A great deal of hard
work is in store for us as we transition to this approach, but the
advantages are enormous, and the Army is fully committed to this
effort.
FOCUS ON HIGH-RETURN NEW INVESTMENTS
The fiscal year 2005 budget for Army Civil Works targets funding to
the new investments that have very high economic or environmental
returns. The budget does so by emphasizing priority missions and
allocating substantial funding to new and continuing high return
continuing construction projects while de-emphasizing the design and
initiation of new projects. However, the budget funds three new
projects that have high economic or environmental returns and several
new high priority studies that competed successfully for funding. The
budget also discontinues Federal participation in beach renourishment
activities, and proposes to cancel unobligated balances for projects
that do not provide high returns or that are not Civil Works
responsibilities.
Priority Missions
The budget emphasizes ongoing studies, projects and programs that
provide substantial benefits in the priority missions of the Civil
Works program for new investments, namely, commercial navigation,
aquatic ecosystem restoration, and flood and storm damage reduction.
The budget also provides funding for other areas of Corps
involvement, including regulatory protection of waters and wetlands,
cleanup of sites contaminated by the Nation's early atomic weapons
program, and the management of natural resources and provision of
hydroelectric power and recreation services at Federally operated Civil
Works projects.
No funds are provided for studies and projects that carry out non-
traditional missions that should remain the responsibility of non-
Federal interests or other Federal agencies, such as wastewater
treatment, irrigation water supply, and municipal and industrial water
supply treatment and distribution. Furthermore, the budget does not
fund individual studies and projects that are inconsistent with
established policies governing the applicable missions.
Ongoing, Budgeted Construction Projects
In recent years, ongoing construction projects that the budget
funds have had to compete for funding with numerous new construction
starts. To maximize the net returns of the construction program and
finish the construction backlog more quickly than under current trends,
the budget directs funding to complete 11 ongoing projects in fiscal
year 2005, and continues progress on projects consistent with long-
established policies, including eight projects that are the highest
priorities in the Nation. It also provides substantial funding for dam
safety investments. In addition, the budget funds three new projects
with high economic and environmental returns.
Altogether, the budget includes funding for construction of 149
projects, not including the projects constructed under the Continuing
Authorities Program.
Consistent with this focus on projects already under construction,
the budget includes funding to continue or complete design of 23
proposed projects that were selected based on their economic and
environmental returns. The budget defers work on all lower priority
design efforts. Similarly, we made an effort to prioritize studies of
proposed projects. In general, funding is targeted to the most
productive study and design activities, including $8 million for the
expanded Louisiana Coastal Area Study. Funding is provided for five new
studies that competed successfully with ongoing work.
Beach Renourishment
The budget does not include any funding for beach renourishment.
The administration's view is that non-Federal interests should carry
out renourishment activities once the initial nourishment has been
accomplished, just as they operate and maintain other types of projects
once the installation is complete. This policy applies to all types of
projects involving beach renourishment, including projects for which
Project Cooperation Agreements already have been executed. Work under
such agreements is subject to the availability of funding, and the new
policy specifies that funding no longer will be sought for
renourishment phases.
We will continue to plan for and design shore protection projects,
and we will continue to construct initial nourishment phases as well as
the structural measures for coastal projects. We also will continue to
deposit dredged material from navigation projects on the adjacent
shores when it is the least-cost, environmentally acceptable disposal
method. In addition, we will participate financially in one-time
placements of dredged material for the beneficial use of shore
protection, and we will perform follow-on placements for the beneficial
use of shore protection if non-Federal interests finance the
incremental costs. Within these ground rules, we will continue to
participate in regional sediment management activities.
There is one exception to the policy in fiscal year 2005, for the
Westhampton Shores, New York, area. We are funding periodic
renourishment program as ordered by the district court in the
settlement of the case of Rapf et al. vs. Suffolk County of New York et
al.
Cancellation of Unobligated Balances
To free up funding for higher priority needs, the budget proposes
to cancel the unobligated balances of 41 projects that are not
consistent with current policy. The cancellation would take effect with
enactment of fiscal year 2005 appropriations.
FINANCING AND MANAGEMENT INITIATIVES FOR OPERATING PROJECTS
The Operation and Maintenance program includes funding for four
significant initiatives: direct funding of hydropower operation and
maintenance costs; recreation modernization; a new emergency
maintenance reserve fund; and anti-terror facility protection.
Direct Financing of Hydropower Operation and Maintenance Costs
Historically, each year the Army Civil Works program has financed
the operation and maintenance costs of Corps of Engineers hydroelectric
facilities, and Federal power marketing agencies have repaid the
Treasury for these costs from the revenues provided by ratepayers. The
exception has been in the Pacific Northwest, where under section 2406
of the National Energy Policy Act of 1992, Public Law 102-486, the
Bonneville Power Administration (BPA) has directly financed the costs
of operating and maintaining the Corps' hydroelectric facilities from
which it receives power. BPA has been providing operation and
maintenance funds in this manner each year, beginning in fiscal year
1999.
Each year, Corps facilities experience unplanned outages around 3
percent of the time. In 1999, the General Accounting Office found that
the Corps' hydropower facilities are twice as likely to experience
``unplanned outages'' as private sector facilities, because the Corps
does not always have funds for maintenance and repairs when needed.
To address this problem, the budget proposes that the Southeastern
Power Administration, the Southwestern Power Administration, and the
Western Area Power Administration finance hydropower operation and
maintenance costs directly, in a manner similar to the mechanism used
by Bonneville. The budget contemplates that these power marketing
administrations, in consultation with the Corps, would make funding
available for those hydropower operation and maintenance expenditures
that they believe are justified in order to provide economical,
reliable hydropower to power customers. We believe that, as a
consequence, unplanned outages would decline over time to levels
comparable to the industry average. The administration is submitting
this as an appropriations proposal. Under current Congressional Budget
Office and Office of Management and Budget scoring, the funds provided
by the power marketing administrations offset appropriated funds
without PAYGO consequences.
Recreation Modernization
The second initiative is to modernize recreation facilities. The
recreation modernization initiative has three components. The first is
a legislative proposal that: 1) authorizes the Corps to establish a
permanent recreation fee program that is consistent with the existing
Federal Recreation User Fee Demonstration program; 2) authorizes the
Corps to collect entrance fees; and 3) authorizes the Corps to retain
all recreation use fees over $37 million per year and to use the
retained fees for its recreation facilities. To support this proposal,
we currently are developing a proposed schedule of recreation use fees,
lease receipts, and other sources of revenue, showing the locations
where we expect to collect revenue and the kinds and amounts of revenue
we expect to collect at each location.
The second is six recreation demonstration projects, at Texoma Lake
in Texas, Shelbyville Lake in Illinois, Rathbun Lake in Iowa, W. Kerr
Scott Lake in North Carolina, Cumberland Lake in Kentucky, and Beaver
Lake in Arkansas. At each location, the Corps will demonstrate new
planning, management and financing partnership arrangements with State
and local government park authorities and private sector
concessionaires. These will be designed to upgrade Corps recreation
facilities at little or no cost to the Federal Government. If these six
demonstration projects are a success, the Corps will expand the model
to other Corps facilities in the future.
The third is $6 million to upgrade Corps recreation facilities
related to the Lewis and Clark Bicentennial commemoration.
Emergency Maintenance Reserve
The budget includes $35 million for an emergency maintenance
reserve fund, from which the Assistant Secretary of the Army for Civil
Works will make allocations to meet high-priority, unexpected, and
urgent maintenance needs at key facilities. When an unexpected
emergency occurs under current practice, it is sometimes difficult to
find the needed funds on a timely basis. The new arrangement will
enable us to respond to these situations promptly, without interfering
with other program commitments.
The Assistant Secretary will make the allocation decisions based on
the urgency of the maintenance or repair requirements, the relative
availability of funding from lower-priority work, and the likelihood
that additional high-priority needs would be identified in the
remainder of the fiscal year.
Anti-Terrorist Facility Protection
Since the events of September 11, 2001, the Civil Works program has
received appropriations of $278 million to provide facility protection
measures that have recurring costs (such as guards), to perform
assessments of threats and consequences at critical facilities, and to
design and implement the appropriate ``hard'' protection at those
critical facilities. The administration is continuing its commitment to
facility protection in fiscal year 2005, with a budget of $84 million
for facility protection. Of the $84 million, $72 million is for
projects funded from the Operation and Maintenance account and $12
million is for other projects and facilities.
PRESIDENT'S MANAGEMENT AGENDA
We are pleased with the progress we are making on the President's
Management Agenda. Like most agencies, we started out in 2002 with
``red'' ratings across the board. Our status rating for the human
capital initiative is now ``yellow.'' We now have ``green'' or
``yellow'' progress ratings for all five of the President's Management
Agenda initiatives.
The Army Corps of Engineers has developed a sound, comprehensive
human capital plan and has implemented its ``USACE 2012'' plan. The
2012 plan is the Corps guiding document for organizational changes and
process changes to improve service delivery.
The Corps continues to be a strong supporter of E-Gov initiatives
such as Recreation One-Stop, Geospatial, and Disaster Management. It is
aggressively working to improve the overall management of its
information technology investments by extensively using the Federal
Enterprise Architecture to identify opportunities to identify like
systems and identify possible opportunities to collaborate.
The Corps has developed a plan and management infrastructure to
conduct competitive sourcing and has completed all preliminary planning
steps for its first two standard competitions to be announced in fiscal
year 2004.
To identify problems identified in its audits for 2002 and 2003,
the Corps is improving documentation to support older assets.
We are confident that our work on the President's initiatives will
yield greater program efficiency and effectiveness in the years to
come.
APPROPRIATION ACCOUNTS
Although the budget was formulated largely by program area, it is
presented to Congress by traditional appropriation account.
General Investigations
The budget for the General Investigations program is $90.5 million.
This funding level reflects an emphasis on completing policy-consistent
projects that are already budgeted in the Construction account, rather
than continuing to plan, design, and initiate new work.
Within this amount, $8.6 million is to continue or complete
preconstruction engineering and design of the 22 projects with the
highest expected economic or environmental returns. The remaining
funding will be used to continue the ongoing phases of policy-
consistent reconnaissance and feasibility studies, and to continue
coordination, technical assistance, and research and development. The
budget funds four new studies that competed successfully with ongoing
work. These studies are as follows: Southern California Wetlands
Restoration, California; Boulder Creek, Colorado; Chesapeake and
Delaware Canal Environmental Restoration, Delaware and Maryland; and
Mississippi River-Gulf Outlet Ecosystem Restoration, Louisiana.
One of my priorities is to improve analytical tools to support
water resource planning and decision-making. The budget addresses this,
for instance, by increasing funding for research and development on
modeling and forecasting tools, including $2.5 million for the
Navigation Economic Technologies research program funded in this
account.
Construction
The fiscal year 2005 budget for the Construction program is $1.4215
billion. Of that total, $115 million would be derived from the Inland
Waterways Trust Fund to fund 50 percent of the costs of construction
and major rehabilitation of inland waterway projects, and $10 million
would be derived from the Harbor Maintenance Trust Fund to fund the
Federal share of dredged material disposal facilities at operating
coastal harbor projects.
The budget proposes funding for three new starts that have very
high economic and environmental returns: the Washington, DC, and
Vicinity flood damage reduction project; the Rio Guanajibo, Puerto
Rico, flood damage reduction project; and the Everglades Pilot Projects
Program, Florida. The pilot projects program is part of the
Comprehensive Everglades Restoration Plan, which in turn is part of the
Central and South Florida project.
Substantial funding is provided for the 11 projects completing
construction in fiscal year 2005, for dam safety assurance, seepage
correction, and static instability correction projects, and for eight
high priority projects nationwide. The high priority projects are the
New York and New Jersey Harbor deepening project ($103 million); the
Olmsted Locks and Dam, IL & KY, project ($75 million); projects to
restore the Florida Everglades ($125 million) and the side channels of
the Upper Mississippi River system ($28 million); two projects to
provide flood damage reduction to urban areas, namely, the Sims Bayou,
Houston, TX, project ($16 million) and the West Bank and Vicinity, New
Orleans, LA, project ($37 million); and projects to meet environmental
requirements in the Columbia River Basin ($107 million) and the
Missouri River basin ($69 million). The Everglades work actually is
comprised of three distinct projects, as is the Columbia River Basin
work.
The budget provides $52.9 million for the planning, design, and
construction of projects under the Continuing Authorities Program.
These are small projects for flood damage reduction, navigation,
shoreline protection, streambank protection, navigation project impact
mitigation, clearing and snagging, aquatic ecosystem restoration,
project modifications for improvement of the environment, and
beneficial uses of dredged material (including beneficial uses for
environmental purposes as well as beneficial use for coastal storm
damage reduction).
Flood Control, Mississippi River and Tributaries
The budget includes $270 million for the Flood Control, Mississippi
River and Tributaries account.
The budget includes funding for preconstruction engineering and
design for the Morganza to the Gulf, Louisiana, project. The budget
also includes funding for one new study of opportunities for the
acquisition of additional real property interests in the Atchafalaya
Basin.
Operation and Maintenance
The budget for Operation and Maintenance emphasizes essential
operation and maintenance activities at Corps facilities, including
maintenance dredging and structural repairs. The overall budget for the
Operation and Maintenance account is $1.926 billion.
The budget continues the past policy of directing funding for
navigation maintenance primarily to those harbors and waterways that
have high volumes of commercial traffic. For small ports and
recreational harbors, the budget funds maintenance work where needed to
support significant commercial navigation, commercial or subsistence
fishing, or public transportation benefits.
Approximately $1.103 billion is to fund projects and programs
supporting navigation for commercial cargo, commercial or subsistence
fishing, and public transportation. Within this amount, the budget
provides about $539 million for deep draft harbors (harbors with
authorized depths of greater than 14 feet); $28 million for shallow
draft harbors; $411 million for inland waterways with commercial
traffic of more than 1 billion ton-miles per year; and $49 million for
waterways with less commercial traffic. An additional $74 million
represents joint use costs at multi-purpose projects that are allocated
to navigation.
Approximately $823 million is for projects and programs other than
navigation, including flood damage reduction ($286 million), recreation
($253 million), natural resources management ($92 million),
hydroelectric power generation ($153 million), and emergency management
($40 million, including the $35 million emergency maintenance reserve).
Regulatory Program
The recent performance assessment of this program concluded that it
is moderately effective overall. The budget provides $150 million,
which is a substantial increase over the fiscal year 2004 enacted
amount and reflects our assessment that this program needs additional
funding. The activities funded in the budget include permit evaluation,
enforcement, oversight of mitigation efforts, administrative appeals,
watershed studies, special area management plans, and environmental
impact statements.
One of my priorities for the Civil Works program is to improve the
effectiveness of aquatic resource protection and the efficiency of
permit reviews and decision-making. The budget will enable us to reduce
permit evaluation times, improve protection of aquatic resources, and
continue wetlands protection through watershed approaches.
Formerly Utilized Sites Remedial Action Program (FUSRAP)
The Formerly Utilized Sites Remedial Action Program (FUSRAP) is an
environmental cleanup program for sites contaminated as a result of the
Nation's early efforts to develop atomic weapons. Congress transferred
the program from the Department of Energy in fiscal year 1998. We are
continuing to implement needed cleanups at contaminated sites. This
year's budget is $140 million.
General Expenses
Funding budgeted for the General Expenses program is $167 million.
These funds will be used for executive direction and management
activities of the Corps of Engineers headquarters, the Corps division
offices, and related support organizations. Within the budgeted amount,
$7 million is to audit the Civil Works financial statements, a function
formerly carried out by the Army Audit Agency (AAA) using its own
funding. The AAA has done this work in the past, but it is not
sufficiently independent of the Corps to conduct this audit under new
General Accounting Office auditing standards.
Flood Control and Coastal Emergencies
The Flood Control and Coastal Emergencies account finances response
and recovery activities for flood, storm, and hurricane events, as well
as preparedness for these natural events and for support to the Federal
Emergency Management Agency through the Federal Response Plan.
The recent performance assessment of this program concluded that it
is moderately effective overall. Accordingly, the fiscal year 2005
budget includes $50 million, which is the approximate amount the Corps
of Engineers spends on flood and coastal storm emergency preparedness,
response, and recovery activities in a typical year. This funding will
reduce the likelihood of having to borrow from other accounts or obtain
supplemental appropriations.
CONCLUSION
The Army Civil Works budget for fiscal year 2005 will enable us to
move ahead with many important investments that will yield enormous
returns for the Nation in the future.
TABLE 1.--DEPARTMENT OF THE ARMY CORPS OF ENGINEERS--CIVIL WORKS FISCAL
YEAR 2005 BUDGET
------------------------------------------------------------------------
------------------------------------------------------------------------
Requested New Appropriations:
General Investigations.......................... $90,500,000
Construction.................................... 1,421,500,000
Operation and Maintenance....................... 1,926,000,000
Regulatory Program.............................. 150,000,000
Flood Control, Mississippi River and Tributaries 270,000,000
General Expenses................................ 167,000,000
Flood Control and Coastal Emergencies........... 50,000,000
Formerly Utilized Sites Remedial Action Program. 140,000,000
-------------------
TOTAL......................................... 4,215,000,000
===================
Sources of New Appropriations:
General Fund.................................... 3,303,000,000
Harbor Maintenance Trust Fund................... 610,000,000
(O&M)....................................... (600,000,000)
(Construction--Disposal Facilities)......... (10,000,000)
Inland Waterways Trust Fund..................... 115,000,000
Special Recreation User Fees.................... 37,000,000
Power Marketing Administration Direct Funding... 150,000,000
-------------------
TOTAL......................................... 4,215,000,000
===================
Additional New Resources:
Rivers and Harbors Contributed Funds............ 287,000,000
Bonneville Power Administration................. \1\ 71,000,000
Coastal Wetlands Restoration Trust Fund......... 63,000,000
Permanent Appropriations........................ 16,000,000
-------------------
TOTAL......................................... 437,000,000
===================
Total New Program Funding..................... 4,652,000,000
Proposed Cancellation of Prior-Year Funds........... (100,000,000)
------------------------------------------------------------------------
\1\ Beginning in fiscal year 2005, budget authority from BPA is limited
to budget authority for joint use costs. Funding for the specific
costs of hydropower will be executed in a BPA account and will not
count as Corps budget authority. Accordingly, the amount of $71
million for fiscal year 2005 appears to be a reduction from the total
fiscal year 2004 amount of $143.205 million, but in fact is a slight
increase from the corresponding fiscal year 2004 amount of $69.5
million for joint use costs.
Senator Domenici [presiding]. Thank you very much.
General, would you like to comment also? Excuse me, I
didn't have my mike on. Would you like to comment also?
General Flowers. Yes, sir.
Senator Domenici. Your statement will be made a part of the
record.
STATEMENT OF LIEUTENANT GENERAL ROBERT B. FLOWERS
General Flowers. Sir, I am honored, again, to be testifying
before you, along with the Secretary, on the President's fiscal
year 2005 budget for the Army's Civil Works program.
Today, thanks to this subcommittee's strong support, this
Civil Works program is balanced, responsive, and highly
productive. I look forward to your continued partnership in
this important program, so broadly beneficial to the Nation.
My complete statement covers more details on the fiscal
year 2005 program, including the backlog, transforming the
Corps, our business-management system----
Senator Domenici. Oh, yeah.
General Flowers [continuing]. And the Corps' overall value
to the Nation's economy, the environment, and national defense.
With your permission, I'll summarize some of the main points.
First, a word about the President's budget and the value of
the Civil Works program to the Nation's economy and the
environment. This budget funds the critical water-resources
infrastructure that has improved the quality of our citizens'
lives and provided a foundation for the economic growth and
development of this country. Our projects for navigation, flood
protection, ecosystem restoration, hydropower generation, and
recreation directly contribute to national economic well-being.
The sum of benefits realized as reduced transportation costs,
avoided flood and storm damages, and improvements in
environmental value is considerable.
And I'd like to share some numbers with you that illustrate
the direct effect of the Civil Works mission.
First, the navigation program enables 2.4 billion tons of
commerce to move on navigable waterways. The U.S. Department of
Transportation estimates that these cargo movements have
created jobs for 13 million people.
Second, the Corps flood-damage reduction structures have
saved lives and property loss. Taxpayers save $21 billion in
damages each year.
And, third, almost all of our construction work and over
half of our civil planning and engineering is completed by
private-industry contractors funneling money directly into the
economy.
This budget also includes funding to support watershed
studies. These studies will allow us to work collaboratively
with many stakeholders. With the complexity of water problems
today, we believe this is the direction we must take to develop
the best, most comprehensive solutions.
Moving now to our backlogs, we estimate it will cost
approximately $11 billion to complete the construction projects
funded in the fiscal year 2005 construction general budget. The
maintenance backlog continues to be challenging. The work the
Corps is completing on our infrastructure is a critical element
to a strong economy. Sustaining this level of service becomes
more of a challenge as our infrastructure ages. The fiscal year
2005 budget includes $1.926 billion for the operations and
maintenance program. I can assure you that I will continue to
do all that I can to make these programs as cost effective as
possible.
There are many who are interested in transforming the
Corps, inside and outside of the organization. Some may have
the larger goal of changes in current water policy in mind;
others may want us to operate more efficiently and effectively.
What I'd like to make clear is that we're listening. I've met
with individuals, industry groups, and interest groups to hear
what they have to say. The Corps is undergoing sweeping changes
as a result of our customer and stakeholder input. We are
becoming a team of teams within the organization focusing on
eight regional business centers, which will more efficiently
deliver service to the public and the Armed Forces. And let me
assure you, I'm committed to working with you and all who are
interested, and to doing all in my power to transform the Corps
to meet the Nation's needs.
I'm very proud of the Civil Works program and its support
to the national security strategy. The Corps' Civil Works
experience is proving invaluable as soldiers and civilians of
the Corps of the Engineers help to rebuild Iraqi
infrastructure. To date, over 1,000 civilian volunteer members
have served in Iraq, sharing their knowledge and expertise with
Iraqi engineers and other professionals, assisting the
Coalition Provisional Authority and the Combined Joint Task
Force in repairing and rebuilding Iraqi infrastructure.
PREPARED STATEMENT
The Corps is committed to staying at the leading edge in
providing service to the Nation, and I truly appreciate your
continued support to this end.
Thank you, Mr. Chairman, members of the committee. That
concludes my statement.
[The statement follows:]
Prepared Statement of Lieutenant General Robert B. Flowers
Mr. Chairman and distinguished members of the subcommittee, I am
honored to be testifying before your subcommittee today, along with the
Assistant Secretary of the Army for Civil Works, the Honorable John
Paul Woodley, Jr., on the President's fiscal year 2005 (fiscal year
2005) Budget for the United States Army Corps of Engineers' Civil Works
Program.
My statement covers the following 6 topics:
--Summary of Fiscal Year 2005 Program Budget,
--Civil Works Construction Backlog,
--Civil Works Program Transformation,
--Need for a More Robust Business Management System,
--Value of the Civil Works Program to the Nation's Economy, and
--Value of the Civil Works Program to the Nation's Defense.
SUMMARY OF FISCAL YEAR 2005 PROGRAM BUDGET
Introduction
This budget provides new funding for the Civil Works Program,
including the Direct and Reimbursed programs, is expected to approach
$5.602 billion.
Direct Program funding, including discretionary and mandatory
funding appropriated directly to the Corps, totals $4.652 billion.
Discretionary funding, including amounts ultimately replaced by
mandatory funding, totals $4.215 billion; additional mandatory funding
totals $437 million.
Reimbursed Program funding is projected to be $950 million.
Direct Program
The proposed budget reflects the administration's commitment to
continued sound development and management of the Nation's water and
related land resources. It provides for continued efficient operation
of the Nation's navigation, flood protection, and other water resource
management infrastructure, fair regulation of the Nation's wetlands,
and restoration of the Nation's important environmental resources, such
as the Florida Everglades.
The budget provides for continued funding of nearly all studies and
projects underway, including many started in fiscal year 2005. It also
provides for funding of 4 new studies under the General Investigations
(GI) program.
Reimbursed Program
Through the Interagency and Intergovernmental Support Program we
help non-DOD Federal agencies, State, and other countries with timely,
cost-effective implementation of their programs, while maintaining and
enhancing capabilities for execution of our Civil and Military Program
missions. These customers rely on our extensive capabilities,
experience, and successful track record. The work is principally
technical oversight and management of engineering, environmental, and
construction contracts performed by private sector firms, and is fully
funded by the customers.
Currently, we provide reimbursable support for about 60 other
Federal agencies and several State and local governments. Total
reimbursement for such work in fiscal year 2005 is projected to be $950
million. The largest share--nearly $250 million--is expected from the
Environmental Protection Agency (EPA) for cleanup of wastes at numerous
sites under its Superfund program. Ninety percent of Reimbursed Program
funding is provided by other Federal agencies.
Staffing
Total staffing for the Civil Works Program for fiscal year 2005 is
24,800 FTEs, unchanged from fiscal year 2004. Of the total, 23,700 FTEs
are for the Direct Program and 1,100 FTEs are for the Reimbursed
Program. Total staffing is allocated 90.6 percent to districts, 4.9
percent to laboratories and other separate field operating agencies,
2.7 percent to division offices, and 1.8 percent to headquarters.
CIVIL WORKS CONSTRUCTION BACKLOG
In the broadest sense, the ``construction backlog'' is unfunded
work. For the Civil Works Program, it is defined more specifically, as
the Federal share of unfunded continuing and future construction work
at some point in time, e.g., the beginning of some funding period, such
as fiscal year 2005. This definition can be further variously
qualified. Such continuing and future work could include, for example,
only work that is currently programmed on projects now actively under
physical construction, while excluding such work where a project has
not yet begun physical construction or where physical construction has
been suspended for more than a year.
At the end of fiscal year 2005, it will cost approximately $11
billion in non-inflated dollars to complete the construction projects
of the Construction, General, Program funded in the fiscal year 2005
budget, which represents a decrease from last year. The decrease partly
reflects a decision to display the backlog in fiscal year 2005 dollars
rather than inflating amounts to future dollars. The decrease is also
the result of project completions, as well as the decision not to
budget for periodic renourishment of shore protection projects.
As part of a comprehensive strategy to reduce the construction
backlog, the Fiscal Year 2005 Budget focuses on completing those
ongoing construction projects that are consistent with current policies
and accelerating work on eight high-priority projects. We believe that
narrowing the focus on funding and completing a smaller, more
beneficial set of projects will bring higher net benefits to the Nation
sooner. We need to be careful that we do not continually start new
projects and subsequently stretch out the completion of existing ones.
That is why the Budget proposes only three new starts of projects that
have a very high benefit-cost ratio.
Maintenance Program
Water and related land resource management facilities of the Civil
Works Program are aging. As stewards of this infrastructure, we are
challenged to ensure that it continues to provide an appropriate level
of service to the Nation. Sustaining such service, and the resultant
flows of benefits, through proper operation and maintenance projects,
is becoming increasingly more expensive as infrastructure ages.
The ``Operation and Maintenance (O&M) Program'' includes costs
funded under the Operation and Maintenance, General, and Mississippi
River and Tributaries, Maintenance, appropriation accounts, for the
operation, maintenance and security of existing river and harbor, flood
and storm damage reduction, aquatic ecosystem restoration, owned and
operated by, or on behalf of, the Corps of Engineers, including
administrative buildings and facilities and laboratories. Funds are
also included for surveys and charting of northern and northwestern
lakes and connecting waters, clearing and straightening channels, and
removal of obstructions to navigation. Work to be accomplished includes
dredging, repair, and operation of structures and other facilities, as
authorized in the various River and Harbor, Flood Control, and Water
Resources Development Acts. Related activities include aquatic plant
control, monitoring of completed coastal projects and, removal of
sunken vessels.
The fiscal year 2005 budget includes $1.926 billion for the
Operation and Maintenance Program. In an effort to improve the
efficiency of our investment in operation and maintenance, we are
looking closely at how we determine the appropriate level of service
and the amount of spending needed to support that level of service.
Furthermore, we are searching for ways to reduce costs and thereby
accomplish more with available resources.
CIVIL WORKS PROGRAM TRANSFORMATION
Throughout its long and distinguished history, the Civil Works
Program has continually changed in response to advances in science,
methods, and processes, changing public values and priorities, and
laws. For our program to remain a viable contributor to national
welfare, we must remain sensitive to such factors, and continue to
reorient, rescope, and refocus the program in light of them. To that
end, I'm committed to reforming the Civil Works Program to meet the
Nation's current water and related land resource management needs.
We have been working very hard internally, within the Corps of
Engineers, to transform. We are making our processes more open, and
more collaborative. We are working to revitalize our planning
capabilities, and to become more efficient, more centralized, with one
planning center for each of our eight divisions.
We are becoming a team of teams within the organization, focusing
on eight regional business centers, which will move efficiently and
deliver service to the public and the armed forces.
Let me tell you about some of the major steps we've already taken:
--We are continuing to spread the spirit and the word of the Corps'
Environmental Operating Principles--a clear commitment to
accomplishing our work in environmentally sustainable ways--
with the express purpose of instilling the principles as
individual values in all members of the Corps team.
--We are continuing a rigorous training curriculum to improve our
planning capability. This will ensure that the best science is
applied in project development and that our planners will
integrate economics and ecology in developing Corps projects.
We're cooperating with major universities and have begun to
sponsor graduate education in water resources planning. We've
re-instituted our very successful Planning Associates Program,
the first class graduated last year.
--Our Fiscal Year 2005 Budget for the Research and Development (R&D)
Program includes funding to improve economic models. One of our
principal efforts will be to focus on economic methods and
tools for navigation evaluations designed to address, update,
and improve specific models, and to address modeling issues
raised by the Corps and others. We need to make substantial
modeling advances to support decision making on proposed major
investments.
--We have redoubled our efforts to engage Federal, State, and local
agencies, stakeholders, and the public in meaningful dialogue.
We have brought the major resource agencies to the table to
assist in decision-making.
--The Corps and ASA(CW) have allocated additional resources to
strengthen our internal review capability, and are considering
other measures to further improve such capability. With our
restructuring under USACE 2012, we have just created an Office
of Water Project Review here in Headquarters which effectively
doubled the size of our policy compliance review staff. The
goal is to have our economists, plan formulation specialists,
and environmental reviewers focus on early involvement in study
development to assure compliance with established policy as
projects are being developed. This group is equipped to
additionally oversee administration of external independent
review on controversial and complex projects through contracts
with outside experts. Over the past year, we have also
developed a series of policy compliance checklists to assist
District and Division Commanders in the early identification
and resolution of issues. I am committed to working with field
commanders in providing training, lessons learned and other
tools to strengthen the policy compliance quality control/
quality assurance process.
--We are making good progress on developing a new Civil Works
Strategic Plan that emphasizes the sustainable development,
management and protection of our Nation's water and related
land resources.
--We have established 5 national planning centers of expertise
staffed with engineers and scientists--a step that is essential
for successfully addressing the issues that increasingly arise
in planning a water resources project, especially those that
are costly, complex, or controversial, or which otherwise
require very specialized planning work.
We're committed to change that leads to open and transparent
modernization of the Civil Works Program for the 21st Century. To this
end, we're committed to continuing the dialogue with you and the Corps
Reform Network Steering Committee. Additionally, I have issued
communication principles to ensure open, effective, and timely two-way
communication with the entire community of water resources interests.
We know well that we must continue to listen and communicate
effectively in order to remain relevant.
NEED FOR A MORE ROBUST BUSINESS MANAGEMENT SYSTEM
Introduction
We have a reputation as the world's premier public engineering
organization, which we aim to keep. Our challenge, to this end, is to
``stay at the leading edge'' in service to the Army, Federal
Government, and Nation. The degree to which we will succeed will depend
largely upon improved business operations. To enable providing service
of highest relevance, we must improve our operations for more
expeditious and productive performance. In recognition of this, I have
been engaged, throughout my tenure as Chief, in an effort, initiated by
my predecessor, to reengineer the organizations and business operations
of the Corps of Engineers Civil Works and Military Programs. In that
effort we have selected the project management way of doing business,
or ``modus operandi,'' as the basis for developing a business
management system and attendant organizations and operations.
Accordingly, we have come to call our effort the Project Management
Business Process (PMBP) Initiative.
Project Management Business Process Initiative
Rationale for Selection
Our philosophy is that everything we do is a project, and every
employee is a member of some one or more project teams. Selection of
the project management modus operandi as the basis for developing a
business management system is consistent with this philosophy.
Furthermore, the Corps has used project management principles and
methods in accomplishment of much of its business throughout its
existence, providing seamless, flexible, efficient, and effective
service for its customers. Applying this highly successful model to all
of our business was eminently logical.
Purpose
In order that our 41 districts, 8 laboratories, 2 centers, and 8
divisions to work together as one United States Army Corps of Engineers
(UCSACE), we established common business practices that transcend
organizational and geographic boundaries. Accordingly, the purpose of
our PMBP Initiative is to develop, implement, and sustain a set of
modern, standardized business processes, based on industry's best
business practices, and an automated information system (AIS) to
facilitate use of the PMBP throughout USACE. In short we call our
Project Management AIS ``P2''.
Implementation
The PMBP Initiative focuses on the business relationships between
and among people, including customers and stakeholders; process, and
communication. To create and sustain the PMBP we must examine and
define, to the PMBP system, how we do our work. In the process, we are
transforming ourselves into a customer-focused, team-based, learning
organization. Implementation of PMBP will be accomplished in four
steps, described below, under the aegis of subject matter experts from
all functions and echelons of the Corps.
Business Process Manual
The PMBP Manual provides guidance for achieving our policy and
doctrine. It establishes standard business processes for Corps-wide
application that:
--ensure consistency in program and project execution,
--focus on meeting customer expectations,
--set parameters for means to measure progress across the entire
organization, and
--enhance our ability to function both regionally and virtually with
efficient management of diverse resources.
These standard business processes are used to accomplish project
delivery and provide services. They enable sharing workforce resources
throughout the Corps to complete projects. If a project delivery team
needs someone with a particular skill to accomplish work on its
project, it can borrow service of whomever may be available with that
skill in any Corps office. The processes enable effective management of
projects in all lines of business in our Civil Works and Military
Programs. The processes are open for continuous improvement, giving all
team members opportunity to change them for the better. This will lead
to addressment of concerns of project managers, technical experts, and
customers to assure improvements in quality, project performance, and
customer satisfaction.
Automated Information System ``P2''
Management of projects in accordance with the PMBP will be
facilitated through use of ``P2''--an automated information system.
This system, expanding upon and replacing PROMIS, will be used by the
Corps team for project delivery in all lines of work. It comprises
commercial-off-the-shelf (COTS) software configured with templates of
our standard business processes to assist project delivery teams in
managing their projects. The manufactures of this software--Oracle,
Primavera, and Project Partners--are assisting the Corps in configuring
the software to provide the templates.
P2 software employs state-of-the-art technology embracing program
and project management best-practices and enabling compliance to our
PMBP Business Manual. P2 will become the principal tool of Corps
project and technical managers in collecting, manipulating and storing
program and project data. P2 provides a single source of all project-
related information for all programs and projects managed by field
commands, and will interface with other modernized systems to assure
single-source data entry. P2 will enable streamlined project and
resource management, affording wider availability and Web interfaces.
And, finally, because of lower costs to maintain and upgrade COTS
software in future years, P2 will be more cost-effective than PROMIS.
PMBP Training
We have developed a training curriculum to promote PBBP as our new
way of conducting business within the Corps and to guide individuals
and organizations in the progressive development of skills for using
PMBP. The curriculum promotes cultural change through individual self-
paced compact-disk courses followed by small group discussions on the
courses. Each individual covers the material and shares his/her
interpretation with others in facilitated small group discussions. This
process promotes common understanding of PMBP, its purpose, the roles
of individuals, and the means to develop projects though teamwork.
Summary
In summary, the PMBP is being implemented Corps-wide to manage all
Corps projects more efficiently and effectively. Supporting policy and
doctrine, definitions of our business processes, and curriculum are in
now in place Corps-wide. We are currently in the process of deploying
P2 throughout the Corps. P2 is scheduled to be fully deployed during
June of this year. Once fully deployed, the PMBP system will greatly
enhance our ability to better support the Army, other Federal agencies,
and the Nation.
value of the civil works program to the nation's economy and defense
The National Welfare
Water resources management infrastructure has improved the quality
of our citizens' lives and supported the economic growth and
development of this country. Our systems for navigation, flood and
storm damage reduction projects, and efforts to restore aquatic
ecosystems contribute to our national welfare. The stream of net
benefits, realized as reduced transportation costs, avoided flood and
storm damages, and improvements in environmental value can be
considerable.
Research and Development
Civil Works Program research and development provides the Nation
with innovative engineering products, some of which can have
applications in both civil and military infrastructure spheres. By
creating products that improve the efficiency and competitiveness of
the Nation's engineering and construction industry and providing more
cost-effective ways to operate and maintain infrastructure, Civil Works
Program research and development contributes to the national economy.
The National Defense
The Civil Works Program is a valuable asset in support of the
National Security Strategy in that it provides a way to maintain a
trained engineering workforce, with world-class expertise, capable of
responding to a variety of situations across the spectrum of national
defenses This force is familiar with the Army culture and responsive to
the chain of command. Skills developed in managing large water and land
resource management projects transfer to most tactical engineering-
related operations. As a byproduct, Army Engineer officers assigned to
the Civil Works Program receive valuable training, in contracting and
managing large projects.
The Corps of Engineers continues to contribute to the ongoing war
on terrorism, as our civil works experience proves invaluable in
restoring and rebuilding Iraqi and Afghanistan infrastructure. To date,
over 1,000 Corps soldiers and civilians have volunteered to serve in
Iraq, sharing their technical knowledge and expertise along with their
project management skills and experience with Iraqi Engineers and other
professionals. Corps employees have also served in other Central
Command areas of operations providing a wide range of services and
support to the CENTCOM commander's efforts.
In Iraq, we have been deeply involved in the restoration of the
Iraqi Oil industry. Our involvement has helped ensure that more than
268 Million Barrels of crude oil have been exported, resulting in more
than $7 billion being returned to the Iraqi economy. This income is
forming the basis of the emerging national economy in Iraq, with much
of the profit being reinvested in restoring Iraqi infrastructure. We
are also assisting in the procurement of refined oil products in Iraq,
which are essential to every day life in Iraq.
The Corps is proud to have worked closely with the Coalition
Provisional Authority, U.S. Agency for International Development, and
the Iraqi Governing Council in restoring reliable electricity
throughout Iraq. When it became obvious that years of neglect and
sabotage had brought the Iraqi electrical power production and
transmission to near collapse, the Corps, working with the CPA and
USAID exercised its time-proven civil emergency response capabilities
and provided a much-needed boost to electricity delivery across Iraq.
We continue to assist the CPA and USAID in electrical power production
and distribution, and today, the average Iraqi has greater access to
electricity than he had before the war. No longer is access to
electricity a measure of loyalty to the Iraqi regime.
The Corps is also playing a major role in securing and making safe
the more 600,000 tons of former regime munitions spread cross Iraq
through our Captured Enemy Ammunition mission. As of February 10,
350,000 tons of captured enemy ammunition had been secured and
protected from the hands of saboteurs and terrorists. Another 43,00
tons has been destroyed. This mission is vital to the safety of our
soldiers, coalition partners, and innocent citizens of Iraq, as it
helps deny terrorists access to raw materials they need to make weapons
and explosives.
We are also contributing to the continuous improvement of the
safety and quality of life for soldiers, sailors, airmen and marines in
both Iraq and Afghanistan as we continue to construct and upgrade their
living and working areas. In Afghanistan, we are also working with the
USAID and the Ministry of Transportation as they restore the
infrastructure necessary for a prosperous Nation.
HOMELAND SECURITY
In addition to playing an important role in supporting the war on
global terrorism. We are providing security for critical physical
infrastructure, throughout the Nation, including components of
transportation, water, and power systems vital to our Nation's welfare.
The Corps is also a key member of the Federal Response Plan team with
proven experience in support of disaster response.
The Civil Works Program has completed over 300 security reviews and
assessments of our inventory of locks, dams, hydropower projects and
other facilities. We have improved our security engineering capability
and prioritized infrastructure and are currently implementing
recommended features at the highest priority security improvement
projects.
For fiscal year 2005, $84 million is targeted for security
enhancements at key Corps facilities. Facility security systems can
include cameras, lighting, fencing, structure hardening, and access
control devices designed to improve detection and delay at each
facility.
CONCLUSION
Under both our Civil Works and Military Programs, we are committed
to staying at the leading edge in service to the Nation. In support of
that, we are working with others to transform our Civil Works Program.
We're committed to change that leads to open and transparent
modernization of the Civil Works Program for the 21st Century. We also
are strengthening our business management capability for best
performance of both programs Corps-wide.
Thank you, Mr. Chairman and Members of the committee. This
concludes my statement.
Senator Domenici. Senator Craig, would you come down with
me? We have a Senate photographer. This is the last appearance
of the General, and we'd like to take a picture.
Senator Craig. I'm sure he'll want this committee etched
firmly in his memory banks.
Senator Domenici. Come on, we'll do it up here. Actually, I
think that his appearance before us will be memorable.
And good, not bad. Right here. Gosh, I've got to straighten
up here. I don't look like a general, but--thank you. He came
in a hurry.
General Flowers. Thank you, sir.
Senator Domenici. Okay. Mr. Secretary, we're not going to
take your picture. You're probably going to be around here a
little while.
Mr. Woodley. You're very optimistic.
Senator Craig. We're hoping.
Senator Domenici. I am. Why not?
Well, I want to say that all of these good things that you
all have talked about may not get done, because the President's
budget is pretty weak. We may be challenged, but we're doing
the best we can on the numbers, and we figure that the fiscal
year 2004 enacted is $4.571 billion, and the real request for
2005 is $4.065 billion. The difference is $506 million. That's
the cut. Now, I hope that's wrong, but that's what my staff
tells me. Now, I don't know how we can do all the things we
have to do with those kinds of budgets.
General, I want to say, for the record, that you've gone
through some hard times. You've gone through a period of time
when you were strained by accusations and allegations that
turned out to be much, much less than the hullabaloo made about
them. But the Corps continues on.
And I would like to share with my colleagues, who may not
already be aware, that the Corps is the project management in
Iraq. They are the agent. They are the agency directly tasked
with the physical reconstruction of Iraq because of both its
expertise and in management, on a large scale, and its
rehabilitation of critical infrastructure. I find it ironic
that the Corps' talent that we are heavily relying on in Iraq
is the very same one that is most negatively impacted by the
budget of the administration.
I believe the administration, if it had its way, the Corps
would merely become an operations and maintenance agency. I
will tell you, Mr. Secretary, that the very core talent we are
utilizing in Iraq was only developed as a direct result of the
domestic work that we're doing in all of our States.
I think the administration is missing the point, that this
country's economic well-being is closely linked to the
waterways, be they rivers, harbors, or wetlands. Further, it's
our interest to ensure that we maintain these resources for our
continued successful competition with the world marketplace. We
talk a lot about it, but we never mention that our waterways,
our harbors are terrifically important as that goes on in the
world.
This country has an aging water-resource infrastructure.
For example, 50 percent of the Bureau of Reclamation's dams
were built from 1900 into the 1950's, before the current state-
of-the-art construction and the techniques that go with it;
therefore, they require maintenance of a special type. Even
though the budgets are tight, I am concerned that no one is
working to address the longer-term problem, an aging
infrastructure, one of these problems that we all put off. We
absolutely have to address them.
It costs us more when we delay them, and we are going to
wait around until something drastic happens, and then
somebody's going to be blamed. At least we know it, at least
you tell us, at least you warn us. Nobody seems terribly
interested, from what I can tell.
Now, I note that in my opening statement, which I'll make
part of the record that the administration's budget is about 11
percent, that's what that number is, below the 2004 funding
level. Now, that's my evaluation, because I take into
consideration some things the administration assumes we're
going to get, that will be moved over to the budget and be a
plus. Same thing with the Bureau of Reclamation.
Mr. Woodley, if the Congress were to enact the President's
request--I don't intend to put you, as an administration
appointee, in too much of a bind--but if we were to enact the
President's request, without modification, can you tell us now,
or would you prefer to tell us in writing, what the impact on
the Corps of Engineers would be?
Mr. Woodley. Mr. Chairman, I'll explain--I'll give you my
views to the maximum extent possible now. If you'd like for me
to elaborate in writing, I'd be delighted to.
Senator Domenici. Well, we need to know.
Mr. Woodley. Yes. This is a very frugal budget that will
allow us to continue generally with the things that are
underway in 2005, with contracts that are already in place in
2004. It will allow us to move forward in an appropriate way on
the 11 projects that are expected to be completed in 2005. It
will allow us to continue in an aggressive way with the
priority projects that we've identified, that are very good
projects. But it will cut back substantially on our ability to
do studies that are needed for future work, going forward, and
it definitely will not allow us to make a great deal of headway
on deferred maintenance, for instance. It is a very frugal
budget.
Senator Domenici. Well, let me tell you, Mr. Secretary, the
budget contains multiple proposals, which, if enacted as
proposed, would terminate many ongoing projects. You know that.
Mr. Woodley. Yes, sir.
Senator Domenici. The Energy and Water bill, and the
proposal is to carry a general provision as part of that to
cancel specific projects. States affected are Alabama, Alaska,
Mississippi, North Dakota, West Virginia, just to name a few.
Specifically, there are 29 projects which would be
legislatively terminated. How this list was arrived at, I don't
know. Maybe you know. Do you?
Mr. Woodley. Yes, sir, I do.
Senator Domenici. Do you want to tell us?
Mr. Woodley. These are projects that, for a variety of
reasons, it was felt were not the best investment at the time
or were not prepared and fully vetted and ready to proceed with
the investment in fiscal year 2005.
Senator Domenici. Well, I'll tell you, I hope you know that
this committee and this chairman are put in a terrific bind
because you may not know, but the General knows; he's been
around here long enough, but we don't have complete control
over this. Senators want projects. Senators have approved of a
number of these projects. And you can sit around all you want
over there saying they don't make sense, et cetera, but there
are none of them that don't fit the cost-benefit ratios
required by the Corps.
You now say they don't fit, whatever you just said--but the
cost benefit was established as a way to clear projects so they
would not be irrelevant, pork-barrel, and whatever else you
call them. How many of these projects are under construction,
if you know? And what would be the impact of terminating?
Mr. Woodley. I would have to provide that for you, unless--
--
Senator Domenici. Do you know, on the Corps side, General?
General Flowers. I think there are 12 projects currently
under contract, and 5 more were planned to be awarded in fiscal
year 2004, so 17 projects, sir.
Senator Domenici. Seventeen projects, between those that
are in-being, ongoing, and five that were ready to go that
Senators and their States are expecting.
General Flowers. That's correct, sir.
Senator Domenici. Okay.
The Corps is carrying out a study to restore the Bosque
along the Rio Grande, in Albuquerque. That's our green way that
runs through it. You've been there, General, I think.
General Flowers. Yes, sir.
Senator Domenici. Can you update me on the status of the
study and next steps? And when do you anticipate the project
will be ready for construction authorization?
Anybody know?
General Flowers. Yes, sir. We have completed the
reconnaissance phase through--or will complete that, through
fiscal year 2004 funding. And fiscal year 2005 funds are used
to initiate the feasibility study. And so the budget does
include $175,000 toward completing the study.
Senator Domenici. Okay. Now, I'm fully aware, General and
Mr. Secretary, that we are short of money, but, I'll tell you,
I don't intend to wait around forever for this project. It's
very important. It's one that will establish, for the city of
Albuquerque, kind of what the city is, and that's pretty
important, if you know about cities.
I want to ask a question about the internal operation of
the OMB versus the Corps. What I've heard is startling, but I'd
like you to tell me.
Mr. Woodley, how many OMB examiners does the Corps, which
is a $4.5 billion agency, have? And how many does the rest of
the Department of Defense have? Who knows?
Mr. Woodley. I don't know the answer to that.
Senator Domenici. General?
General Flowers. Sir, I think the last count I had, there
were eight Corps examiners. That includes the two supervisors
that are a part of that group.
Senator Domenici. Okay.
General Flowers. And I am not sure on the number for the
rest of the Department of Defense, but I believe that number to
be three.
Senator Domenici. Three. Well, I wonder who makes the
decision that the Corps of Engineers needs eight examiners, and
all of the Department of Defense has three. Who makes that kind
of decision? Who knows? You don't know?
Mr. Woodley. I would have to ask the director of the----
Senator Domenici. OMB.
Mr. Woodley [continuing]. Of the office, Mr. Chairman.
Senator Domenici. Well, we're going to ask him.
Mr. Woodley. I don't know.
Senator Domenici. If the committee doesn't mind, we'll ask
him now, as a result of this hearing. And if he doesn't answer,
we'll haul him up here and ask him why.
I'm of the opinion that they're out to get you and it's
rather strange to me that this goes on, and nobody raises any
Cain. But we will. That's an unfortunate situation, unless they
have some justification that I'm not aware of.
I want to close by telling you I have about eight or nine
questions, but we're close to lunch, and we have two Senators
who want to ask questions, and I want to let 'em.
Senator Craig, would you mind if we let the Senator proceed
with a few questions? She's told me it's going to take 6
minutes.
But then she suggested 6 minutes on Senate time.
And then I suggested 6 minutes on the chairman's time.
Senator Murray. And I'm not sure which is better. I'll take
the better one.
Senator Domenici. Okay. Proceed.
STATEMENT OF SENATOR PATTY MURRAY
Senator Murray. Thank you, Mr. Chairman. Thank you to all
of you for being here today.
General Flowers, as you know, I and my Northwest colleagues
have been supporting the Columbia River Channel Improvement
Project. With the support of Chairman Domenici and Senator
Reid, I've been able to provide $10 million for that project
over the past 4 years. Each time, this subcommittee has had to
add money, because the President's budget never provides any
funds for the project, and this year is no different.
This page from the budget shows that, once again, the
administration's budget is zero for this project, and I wanted
to be here today to ask you a series of questions about the
Columbia River Channel Improvement Project and the
administration's lack of funding.
First, General Flowers, is it true that the recon study,
feasibility study, authorization, and Chief of Engineer's
report on the Columbia River Channel Improvement Project are
all complete?
General Flowers. Yes, ma'am, it is.
Senator Murray. Thank you. General, in its original budget
submittal to the Office of Management and Budget, did the Corps
request funding for the Columbia River Channel Improvement
Project in fiscal year 2005? And if they did, how much did they
ask for?
General Flowers. Ma'am, there are a number of internal
deliberations that go on inside the Agency and Administration,
and there's a process that's put together to vet projects
before--and clear them--before they can be included in the
budget, and this one was not fully vetted and cleared, so it
was not.
Senator Murray. So the Corps did not request funding for
this project.
General Flowers. No, ma'am.
Senator Murray. Well, it was my understanding that the
Corps did want to move on this project. Can you tell us why the
President's budget did not contain any funding for this?
General Flowers. We were--the project was not cleared by
OMB.
Senator Murray. Was not cleared by OMB. General, what would
be the minimum funding level necessary to move on this project
in fiscal year 2005?
General Flowers. It's $15 million, ma'am.
Senator Murray. Okay. Well, I want to ask you about a Texas
project, called Brazos Island. And let me be clear with the
committee, I don't know anything about that project, I have no
position on it, but I do find its situation really interesting
in comparison to the Columbia River Project.
Have the recon study and feasibility study been completed
for the Brazos Island Project?
General Flowers. No, ma'am.
Senator Murray. Has not. Has the Chief Engineer's report
been completed for that project?
General Flowers. Has not.
Senator Murray. Well, in its original 2005 budget submittal
to the Office of Management and Budget, did the Corps request
construction funding for Brazos Island?
General Flowers. No, ma'am. We--I would not request funds
for a project that did not have a favorable Chief's report.
Senator Murray. Well, who put funding in, then, for Brazos
Island?
General Flowers. I do not know.
Senator Murray. Well, in light of the Brazos Island budget,
it seems clear that OMB could have provided funding for the
Columbia River Channel Improvement Project based on same
criteria. Would you agree with that?
General Flowers. Yes, ma'am.
Senator Murray. The Corps budget has language suggesting
that the administration may propose construction funding in
fiscal 2005, pending OMB review. Has the ASA report been
submitted to OMB for review?
Mr. Woodley. Do you want me to answer that, ma'am?
Senator Murray. Yes. Well, I would prefer that the General
did.
General Flowers. Yes. The answer is yes, ma'am.
Senator Murray. Okay. Should we expect a fiscal year 2005
revised budget request supporting construction for Columbia
River Channel Project? And if so, when?
Mr. Woodley. Well, I'm sorry, I must not have understood
the prior question----
Senator Murray. Should----
Mr. Woodley [continuing]. Senator.
Senator Murray. Well----
Mr. Woodley. I apologize. Let me say, Senator, that I have
just returned----
Senator Murray. I----
Mr. Woodley [continuing]. From the region.
Senator Murray. I understand.
Mr. Woodley. I spoke with the directors of the ports and
with the leaders of the division and district. We are very
anxious to get that project moving forward, in spite of the
fact that, as you know, we are facing litigation with respect
to the project that I certainly hope will not be any kind of
impediment to us.
Senator Murray. Well, I understand that, but----
Mr. Woodley. As I understand the status right now, the
report is under review in my office. I have given it the
highest priority, and I want it to be sent to OMB as soon as
possible. And I want it to be sent this month.
Senator Murray. So are we to expect a revised budget
request supporting construction?
Mr. Woodley. That is certainly something that is seriously
under consideration. I certainly am not in a position to make a
commitment to that, but it is under very serious consideration,
and it will be done as soon as possible.
Senator Murray. Well, given the shortfall in the Corps
overall budget, what projects that are included are going to
give up funding for the Channel River Improvement Project?
Mr. Woodley. I think that we would have to consult on that
and see what other adjustments can be made elsewhere in our
budget, or elsewhere, working very closely with the Office of
Management and Budget to provide the funding at the appropriate
level for fiscal year 2005, but that is a----
Senator Murray. Well----
Mr. Woodley [continuing]. Project that I am anxious to move
forward. I am----
Senator Murray. So you can't----
Mr. Woodley [continuing]. Doing everything I can----
Senator Murray [continuing]. Tell us where the money'll
come from right now?
Mr. Woodley. Not today. No, ma'am.
Senator Murray. Well, General Flowers, another project, the
Green/Duwamish Restoration Program, was given a new start by
this subcommittee in 2004. It's authorized, and its studies are
complete. Can you tell me if the Chief of Engineer's report on
that program is complete?
General Flowers. Yes, it is.
Senator Murray. Can you tell me why OMB has not provided an
administration position on that program, and not provided any
funding for that program?
General Flowers. No, ma'am, I cannot. To my knowledge, it's
still under OMB review.
Senator Murray. Well, General--Mr. Chairman, really--I am
concerned about the role that OMB seems to be playing in
delaying or advancing these projects, and I'm wondering if OMB
is also playing a role in the final position of the Chief of
Engineer's report.
Can we be assured, General, that the Corps alone is
determining all final reports and can stand before a judge and
swear to each one's integrity?
General Flowers. Ma'am, until this year, the answer to that
question would have been absolutely yes, but I am now
concerned. And I would like to give a very brief explanation.
No intent to beat up on OMB. I think they are civil
servants, who are trying to do their job. And in so doing, they
are now trying to take a more active role in looking at
projects as the Corps is going through its process. And I
commit to you that I will resist the--I will resist any attacks
on the integrity of the Chief's report, because my job is to
provide you the best engineering and science and
recommendations----
Senator Murray. Sure.
General Flowers [continuing]. Based on that, that's
possible. But there is a tendency now for the Office of
Management and Budget to try to clear pieces of our process
before we are permitted to continue. And we are internally
debating that right now, and I can't tell you what the outcome
will be.
Senator Murray. Well, thank you, General, for your honesty.
Mr. Chairman, I find that deeply disconcerting, and I hope
this committee pursues that.
Senator Domenici. You heard me awhile ago.
Senator Murray. I did.
Senator Domenici. The reason they can do it is because they
have so many of their people, OMB's people, hanging around the
Corps----
Senator Murray. Yeah.
Senator Domenici [continuing]. Doing all kinds of
investigations and analysis, and that's a lot. I mean, there
are some big departments that don't have eight, I can tell you
that. If they did, they wouldn't have enough space for OMB.
They'd be coming out--they'd have to have an office of their
own.
Senator Craig.
Senator Craig. Thank you, Mr. Chairman.
General Flowers, what the Senator from Washington has just
led you through is something that is strongly supported by the
delegations of the three States affected by that Lower Columbia
Basin--or Lower Columbia River dredging. If we want to render
the Port of Portland and Tacoma, and all of that area down
through there, ineffective after hundreds of millions of
dollars of investment, all the way through to Lewiston, Idaho,
which is the last port facility in that series of facilities
along the Snake and the Columbia system, then we will do so by
simply not dredging that stretch from Portland, west to the
mouth. And it's been a long time coming, a tremendous
investment has been made, phenomenal efforts at environmental
mitigation have occurred. It is ripe and ready, and there is no
reason it should not move forward.
Or you simply turn the lights out at the Port of Portland,
and then you progressively turn the lights out up the system,
and that is not our intent. It will not be our intent. And I'm
glad to hear that it's under critical review again. I hope it
becomes a priority, posthaste, as it relates to funding. Enough
said about that.
All I will comment, Mr. Secretary--as it relates to the 41
projects that are not consistent with current policy, here's
the operative question. And the question goes like this.
Senator x says to this Chairman, ``Mr. Chairman, is one of my
projects of the 41?'' And if it is, then that Senator is going
to put phenomenal pressure on this chairman to deny you what
you're attempting to do. I've not yet asked that operative
question of the chairman ``Are any one of these 41 in Idaho?'',
but the question will get asked. Here is----
Senator Domenici. And then, besides, when you get the
answer, if it is that it is, you will go to work----
Senator Craig. Of course.
Senator Domenici [continuing]. In the committee to try to
get it.
Senator Craig. Yeah.
Senator Domenici. Not just me. If you go to work on me, I
don't have all the votes; I might say I won't do that, Senator
Craig. But then you'll go to work on Senators, and they will
have what we always have, and that's that Senators of the
United States want it.
Senator Craig. Yeah.
Senator Domenici. All right?
Senator Craig. Yeah.
Mr. Secretary, here is--before I close, General Flowers,
let me again thank you for your service to this country and to
this area, and, most importantly, your work before this
committee, your forthright-fulness. We appreciate it greatly,
and we thank you, and we hope you have success in a different
role in a different life.
General Flowers. Thank you, sir.
Senator Craig. Mr. Secretary, let me turn to you for my
last question, and it's a bit involved, but I think it's an
important one. And, Mr. Chairman, for the work that you've been
doing the last good number of years, along with me and others,
I think this is an important question.
Congress has been working on a comprehensive energy bill
for over 3 years now, and this chairman has led a phenomenal
effort. There is no question that our country needs an energy
policy, and we've been trying to deliver that to the American
people. One of the key elements of the pending legislation is
infrastructure reform.
Although we've focused on infrastructure nationwide, there
is a growing concern about natural-gas infrastructure in the
Northeast. The market for natural gas has grown considerably in
the Northeast, and new pipeline construction is critical to
meet this growth. The Federal Energy Regulatory Commission is
the jurisdictional agency for reviewing and approving natural-
gas pipeline construction in the United States.
Like the hydroelectric licensing process at FERC, the
pipeline construction process at FERC is substantial and
complicated, but I'm learning that the process is becoming even
more complicated because other agencies, like the Corps are
also involved in the pipeline construction process and bringing
their own understanding of purpose and need to the project. In
the Corps' case, your agency is involved in a--is a
consequence--the Corps' involvement is a consequence of the
Clean Water Act authority to issue Section 404 permits before
construction can take place.
Here's my problem. FERC is the agency given the
responsibility to determine whether a pipeline project can--
should be constructed. That determination must include an
assessment of need, as well as environmental impact. By law,
the Corps, as well as other interested Federal and State
agencies, have been given the opportunity to participate in the
process.
Here are the questions. Why, then, would it take over 17
months since the issuance of the FERC certificate for the
Islander East Pipeline for the Corps to act on a Section 404
permit for that project? If you don't have the answer, I'd like
to know the answer. Seventeen months. A year and a half, or
nearly that. Why would you act in a sequential fashion after
the Commission has acted on this project?
My bigger question is--and one more focused on the purpose
of this hearing today--why are you using resources to redo work
already done by a Federal agency with the exclusive
jurisdiction of determining the need and environmental
sufficiency of a pipeline project? This is government
redundancy run amok. Or by at least appearance, it is.
What expertise does your district office have in pipeline
siting and construction that would put your staff in a position
to second-guess the Commission's staff, public review, and
determination of what constitutes a reasonable set of viable
alternatives? Would you support the concept of one Federal--one
lead Federal agency record for the review of infrastructure
proposals by all agencies?
Those are the series of questions that we're trying to
address in the energy bill. And in sorting through what's going
on out there, the Islander East Pipeline appears to be a
perfect example of why we ought to be changing the way this
system doesn't work.
Your response?
Mr. Woodley. Senator, certainly the question of taking 17
months on a single permit cries out for an investigation, and I
will investigate that. I am not aware of the details of the
project as I sit here before you. We are very much in need of a
streamlined process, and the administration has been working on
streamlining our processes in many arenas. I'm aware of
transportation work, I'm aware of some work in the energy
arena, and the Corps has been part of that, and I want to
continue that and foster it and support it in every way.
We have to proceed very carefully, however, because of the
potential for litigation in these contexts. I'm concerned. For
instance, if you look at the situation that we're facing with
coal mining in the Appalachian region, where we have the Office
of Surface Mining, for many years the Corps deferred to their
expertise in this arena, which I believe was entirely
appropriate. Unfortunately, a Federal court decided that it was
not appropriate, and we have a very difficult situation that we
are trying to manage in that region to get a permitting
operation in place there that will be effective and efficient,
and will survive Federal court scrutiny.
Senator Craig. Well, I've asked a series of questions, and
I would hope that you would search for answers----
Mr. Woodley. I will, indeed.
Senator Craig [continuing]. Because the reason it is asked
is, in part, to be critical, but it is also to point out that
you may be part of a problem. And it's a problem we're trying
to solve. And when you have district offices who would assume
to have the expertise that a national office who specializes in
a given area has, and would second-guess them or third-guess
them, that's a kind of duplication this country can ill afford.
And I've not even talked about State agencies' roles yet, or
role that they play in these siting situations. While they are
critical--and we're trying to bring a major delivery system
down out of Alaska into the Lower 48 to distribute gas and
drive down costs and hopefully drive up employment and avoid
the dislocation of industries that are today employing
thousands of people that are now going offshore, and we can't--
and we have to wait 17 months for a process, why should we do
our effort? Unless we go right down to the system and clean it
out.
Now, I know that the administration is very intent on
trying to streamline and organize. We've talked about
centralizing and--so that we can get a certification or a
movement process that isn't redundant upon--this idea of time,
time, time. The chairman spoke of my effort in hydro
relicensing. Perfect example is right here now in pipeline. You
know, 2, 3, 4, 5, 6, 7 years? Because agencies upon agencies
thought they knew better than somebody else and could dot an
``i'' better than somebody else could? It would seem to me
almost easier to do it within your authority, to do it
reasonably. And if you get locked up in the courts, you might
get into court and get a decision sooner than 17 months. And
you're not even guaranteed now that you will get that after the
fact. So another 17 months from now, we may still be waiting
for this to be processed by a court.
Senator Domenici. Yup.
Senator Craig. And now we're into another couple of years.
I mean, I've spoken my frustration here. I'm very happy to work
with you on this. These kinds of problems have to get resolved,
unless our country just implodes on its own ability to produce
and supply energy, and we drive everything offshore. Shame on
us if we do. But if we can solve it, and we're trying to, and
we want you to work with us, here's a good example. And maybe
this ought to be a template by which we can make a decision on
what ought to be improved and changed.
Mr. Woodley. Yes, sir.
Senator Craig. I thank you all very much.
Senator Domenici. Well, General, you got by without me
asking you about our famous Acequias in New Mexico, but I think
we've at least taught you how to say it.
General Flowers. Yes, sir.
Senator Domenici. These are these little ditches in New
Mexico that are historic, and it's one of the few projects that
you don't have to have a cost-benefit ratio, because there's a
statute saying we want to protect them. They're 400 years old.
But I will say, just ask, there's nothing holding this
project up other than budgeting, is that right?
General Flowers. No, sir, there's nothing holding it up.
Senator Domenici. All right. And this is another year where
the administration didn't fund it. Didn't even fund $2 million
worth. We'll find it and keep it going.
Let me ask, General, what's the difference between the
Corps that you are part of and the soldiers that are part of
the Corps that are going to Iraq? Aren't they all the same?
General Flowers. Yes, sir. We have a way of describing
ourselves. We call ourselves the Engineer Regiment, and it's
made up of soldiers from all components--active, guard, and
reserve--Department of the Army civilians, and contractors, who
work, in some cases as part of our staff, and who perform all
of the work that we do. Then the Civil Works program that is a
great part of the Corps of Engineers is a capability that the
Nation leverages, particularly when it transitions from peace
into conflict, or conflict back into peace. And, as I
mentioned, we've had over a thousand of our civilian employees
volunteer and serve, many from our Civil Works program, and
have served both in Iraq and Afghanistan.
Senator Domenici. I tell you why it comes to my mind. You
know there's such a rotation system, and it's so firm that we
lose our colonel in New Mexico just about the time he
understands how to say Acequia and just about the time he knows
what New Mexico's problems are. But this last time, he was down
on the Rio Grande River, where such a beautiful job was being
done in cutting down salt cedar and burned-down trees, and he
didn't look too happy. And I asked him what was the matter. He
said, ``Well, I'm going to leave here in a couple of weeks, and
I have a wife and one baby--and she's pregnant--and I'm going
to Iraq.'' I had no idea, at that point, that somebody like
that would go to Iraq, but I found out from him that he's very
much needed, and he'll go over there and fit right in and be
part of the team that's building things, right?
General Flowers. Yes, sir.
ADDITIONAL COMMITTEE QUESTIONS
Senator Domenici. And they're good at it, and it is
amazing, to me. And I'm going to find out why that the Office
of Management and Budget spends so much time and effort and so
many people dedicated to trying to find out what you do and how
you do it, and what you do right and what you do wrong. I just
don't understand it. I'm going to ask them how many they'd need
if they gave this ratio to all the departments in the
government. It would be a very interesting fact. In fact, we'll
submit that question to them as a result of this meeting, just
tell them we've heard about this and found out about this and
we'd like to know.
[The following questions were not asked at the hearing, but
were submitted to the Department for response subsequent to the
hearing:]
Questions Submitted by Senator Ted Stevens
Question. The Corps started studying the Tatitlek breakwater and
harbor in 1994, it was approved as a Section 107 project in 1995, the
study phase was almost completed in 2001, with a draft report
circulated within the Corps and submitted to the Pacific Ocean
Division. Since then it has been stalled with little progress in the
last 2 years. Does the Corps plan to get this project back on track?
Answer. A Draft Detailed Project Report and EIS was presented to
the Local Sponsor and the Village of Tatitlek on March 11, 2004
regarding development of a harbor at Tatitlek using the Section 107
Continuing Authority Program for small navigation projects. The cost
for the National Economic Development plan was estimated at $10.3
million of which a non-Federal sponsor would need to provide about $6.8
million due to the $4 million statutory Federal limit on Section 107
projects. The Local Sponsor (Alaska DOT and PF) and the Village of
Tatitlek are currently evaluating their options and trying to identify
potential sources of funds to build a harbor. Due to depletion of
existing funds, if the Local Sponsor decides to continue the Section
107 study, the Local Sponsor will be required to provide additional
matching funds (as required by the Water Resources Development Act of
1986) to finalize the Detailed Project Report and EIS.
Question. Language was included in the fiscal year 2004 Omnibus
Appropriations Bill to waive the matching requirements for the City of
Sitka to correct the design deficiency for the breakwater for the
Thomsen Harbor. However, the Corps has informed us that the language
was not sufficient to waive the local match and that Sitka must still
provide a match to redesign the breakwater that was not designed/
constructed properly in the first place. Does the Corps intend to
require Sitka to fund the local match of the breakwater for a second
time?
Answer. The State of Alaska, rather than the City and Borough of
Sitka (CBS), funded construction of the Thomsen Harbor breakwaters. The
breaks in the breakwaters were installed at the request of
environmental resource agencies with the full knowledge of the State
and the CBS. At the time the State and the CBS did not want to spend
the money and take the time required to conduct a physical model study
of the breakwaters configuration. If physical modeling were performed
at that time, the deficiency in the breakwaters would have been
apparent. A technical study, which includes physical modeling and
updates of the economics and environmental aspects of Thomsen Harbor,
would need to be performed before design and construction could be
initiated. Unfortunately, the language to waive cost sharing in the
fiscal year 2004 Appropriation Bill Senate Report does not override the
cost sharing law of WRDA 1986.
Question. All of the Alaska District construction projects require
additional funding for the projects to stay on track. Why is there such
limited funding for construction projects in Alaska?
Answer. The Alaska District has received almost $20 million from
other Districts in fiscal year 2004 for construction projects. The
Alaska District has funding for four construction projects in the
fiscal year 2005 budget proposal, Chignik, Nome, St. Paul, and Sand
Point harbors. The funding for these projects was limited to the
appropriate amount consistent with the administration's assessment of
national priorities for Federal investments. Additional capabilities
have been expressed for each of these projects as follows: Chignik--$3
million, Nome--$23 million, St. Paul--$16 million, and Sand Point
harbor--$10 million. Kake Dam, False Pass, Seward, and Wrangell harbors
will also be under construction in fiscal year 2005 but have not been
budgeted. Kake Dam's outcome is not considered a high priority by the
administration and the remaining projects will not be budgeted until
after OMB review of the respective decision documents is complete.
Capabilities for these projects are Kake Dam--$7 million, False Pass--
$10 million, Seward--$6 million, and Wrangell harbor--$10 million.
Question. There is $50,000 in fiscal year 2005 budget for the
Anchorage Harbor Deepening. Is the Corps coordinating this work with
the Port of Anchorage with regard to the port expansion?
Answer. Yes, we have been working closely with the Port of
Anchorage and congressional staffers to develop authorizing language
for dredging that will be required as a result of the port expansion.
Question. There is no funding in the fiscal year 2005 budget for
ongoing construction work at Seward Harbor. Does the Corps intend to
complete this project?
Answer. Please refer to the response to question No. 3. The
construction contract for Seward Harbor was awarded on Feb. 3, 2004 in
the amount of $8.47 million. Alaska District was given authority and
funding (Public Law 108-7) to award the construction contract even
though OMB has not approved the feasibility report. The Corps will not
be allowed to budget for this project until it receives OMB approval of
the project. The anticipated construction placement in fiscal year 2005
for this project is $6 million, which will complete this project. If
sufficient funding is available, the Corps intends to complete
construction activities in fiscal year 2005.
Question. The Permit for King Cove road was issued on January 22,
2004 and the preferred alternative for the road is one supported by the
community which extends the road 17 miles and utilizes a hover craft to
cross Cold Bay to King Cove. Do you anticipate any further problems or
potential delays for King Cove road?
Answer. There is no reason to expect any delays caused by
permitting requirements. Aleutian East Borough has awarded the
construction contract to SKW (Arctic Slope Regional Corporation-
Nugget); they are scheduled to start fieldwork in June 2004. The Corps
has received no indication from any organization or group indicating
that there would be any legal challenge to the permit authorization.
Question. I understand there are some concerns with work being done
at St. Paul Harbor regarding NOAA requesting the Corps to perform
diesel seep site remediation. What is the status of these discussions?
Answer. NOAA did ask the Alaska District to modify the existing
Saint Paul Harbor, Phase II, contract. We had several concerns about
modifying the existing contract, and suggested that we use another
contract mechanism that would allow the diesel seep work to be awarded
in fiscal year 2004 and performed in fiscal year 2005. NOAA has
verbally informed us that they will use one of their own contracts to
perform the work in fiscal year 2004. We will continue to work closely
with NOAA to assure that our respective work that is in the same area
proceeds smoothly.
Question. It is my understanding that the Corps does not believe
that there will be any Federal interest in the proposed Knik Arm
Bridge. What is your understanding of this matter and do you believe
the Corps should be involved in the planning, be it greater dredging
and deepening in the Cook Inlet, or otherwise for the Knik Arm Bridge?
Answer. The Corps is still performing the Knik Arm Bridge
reconnaissance study. Funding is being used to complete a 905(b)
assessment that will determine if there is Federal interest in further
studies. However, the addition of bridge approaches, abutments, and
piers could greatly affect the sediment deposition patterns and tidal
currents at the Port of Anchorage, which in turn will affect the
ongoing operation and maintenance of the Corps' navigation project. If
the 905(b) assessment recommends proceeding with a feasibility study,
these affects on the port will be included in the future study. Due to
the large tides and complex tidal currents in Cook Inlet, a detailed
hydrodynamic mathematical and physical model would be needed to
identify the most acceptable design for the bridge length, abutments,
and pier configuration required to maintain efficient operations at the
Port of Anchorage. Other authorities that would enable Corps assistance
in future planning studies in Cook Inlet include Section 216 of the
Flood Control Act of 1970 (Public Law 91-611) which authorizes the
Corps to assess modification of existing projects due to changed
physical or economic conditions. The Section 216 language is as
follows.
``The Secretary of the Army, acting through the Chief of Engineers,
is authorized to review the operation of projects the construction of
which has been completed and which were constructed by the Corps of
Engineers in the interest of navigation, flood control, water supply,
and related purposes, when found advisable due to significantly changed
physical or economic conditions, and to report thereon to Congress with
recommendations on the advisability of modifying the structures or
their operation, and for improving the quality of the environment in
the overall public interest.''
We have also met with members of the Knik Arm Bridge Authority to
discuss future Corps assistance. There was some interest expressed in
using our physical model capabilities, engineering services such as
surveying and drilling, and gathering data, developing, and performing
portions of the EIS. Unless other specific Congressional instructions
and funding are provided, these services could be provided under such
programs as Planning Assistance to States and cost shared 50/50 with
the Sponsor.
CONCLUSION OF HEARINGS
Senator Domenici. Okay, we're in recess until the call of
the Chair. Thank you.
[Whereupon, at 12:15 p.m., Tuesday, April 20, the hearings
were concluded, and the subcommittee was recessed, to reconvene
subject to the call of the Chair.]
ENERGY AND WATER DEVELOPMENT APPROPRIATIONS FOR FISCAL YEAR 2005
----------
U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
NONDEPARTMENTAL WITNESSES
[Clerk's Note.--At the direction of the subcommittee
chairman, the following statements received by the subcommittee
are made part of the hearing record on the Fiscal Year 2005
Energy and Water Development Appropriations Act.]
DEPARTMENT OF DEFENSE--CIVIL
Department of the Army
Corps of Engineers
Prepared Statement of the City of Los Angeles Board of Harbor
Commissioners and Port of Los Angeles
Mr. Chairman and members of the subcommittee, thank you for the
opportunity to submit testimony in support of the Channel Deepening
Project at the Port of Los Angeles, the largest container seaport in
the United States. Our testimony speaks in support of an fiscal year
2005 appropriation of $35 million for the Federal share of continued
construction of the Channel Deepening Project at the Port of Los
Angeles. This critical Federal navigation improvement project underpins
the United States' decisive role in international trade. Consistent
with the goals and priorities of the administration and Congress, the
Channel Deepening Project will provide immediate and significant
economic return to the Nation, fulfill the commitment to environmental
stewardship, and foster positive international relations. We
respectfully request the subcommittee to fully fund our fiscal year
2005 appropriation request of $35 million.
The Corps of Engineers recently revised the cost of the Channel
Deepening Project, and the Federal share, to account for credits for
in-kind services provided by the Port and other project modifications.
The Corps issued these credits before the Port and Corps' execution of
the Project Cooperation Agreement. The modifications include
adjustments to the disposal costs for dredged material, adjustments for
construction contract changes, and project administration costs. The
Corps' revised cost is now $222,000,000, representing a Federal share
of $72,000,000 and a local share of $150,000,000. Furthermore, in
fiscal year 2003, we experienced a funding shortfall challenging the
Port to meet construction contract earnings. As such, under authority
provided by Section 11 of the Rivers and Harbors Act of 1929, the Port
of Los Angeles advanced more than $13,000,000 to the Corps of Engineers
to cover the shortfall, and avoid costly construction shutdown or debt
service due to interest accruals. Similarly, fiscal year 2004 funding
shortfalls may also prove to be insufficient to meet construction
contract earnings and could significantly slow the current construction
schedule for this year. Mr. Chairman, while we are so grateful that the
President's fiscal year 2005 budget includes $23 million for the
Channel Deepening Project, the previous funding shortfalls and the
increased project costs compel us to request the higher funding level.
As you may be aware, the Corps of Engineers reprogrammed $23 million
from the South Pacific Division last year without allocating any
portion of those dollars to the Channel Deepening project that is
performing well.
Dramatic increases in Pacific Rim and Latin American trade volumes
have made infrastructure development at the Port of Los Angeles more
critical than ever, with more than 42 percent of containerized cargo
entering the United States through the San Pedro Bay port complex. The
Port of Los Angeles, alone, handled more than 7.2 million 20-foot
equivalent units of containers (TEUs) in calendar year 2003 (a 20
percent increase over 2002), representing ongoing unprecedented growth
for any American seaport. This burgeoning trade has resulted in the
manufacture of larger state-of-the-art container ships. As such, the
Port embarked upon the Channel Deepening Project--along with its
Federal partner, the Army Corps of Engineers--to deepen its Federal
channel from -45 feet to -53 feet. Currently, more than 50 of these
state-of-the-art container ships are on order to serve the United
States West Coast container fleet. The first of these deeper-draft
ships is scheduled to call at the Port of Los Angeles in August of this
year, carrying 8,000 TEUs and drafting at -50 feet.
As we have testified before, cargo throughput for the San Pedro
Bay--and the Port of Los Angeles in particular--has a tremendous impact
on the United States economy. We at the Port of Los Angeles cannot over
emphasize this fact. The ability of the Port to meet the spiraling
demands of this phenomenal growth in international trade is dependent
upon the speedy construction of sufficiently deep navigation channels
to accommodate the new container ships. These new ships provide greater
efficiencies in cargo transportation, carrying more than 8,000 TEUs and
one-third more cargo and making available to the American consumers
more product inventory at lower prices on imported goods. In addition,
exports from the United States become more competitive in foreign
markets. However, for American seaports to keep up, they must,
immediately, make the necessary infrastructure improvements that will
enable them to participate in this rapidly changing global trading
arena.
Mr. Chairman, these state-of-the-art container ships represent the
new competitive requirements for international container shipping
efficiencies in the 21st Century, as evidenced by the increased volume
of international commerce and the new deeper-draft container ships now
on order for service at ports across the United States within the next
few years. It is imperative that Congress appropriates the requested
funding that will enable the Channel Deepening Project to continue on
schedule through the project's anticipated completion in 2006 to meet
these new efficiencies.
The Channel Deepening Project is clearly a commercial navigation
project of national economic significance and one that will yield
exponential economic and environmental returns to the United States
well into the future. The national economic benefits are evidenced by
the creation of more than 1 million permanent well-paying jobs across
the United States; more than $1 billion in wages and salaries, as well
as local, State and Federal sales and income tax revenues deposited
into the Federal treasury. As an aside, the 7.2 million TEUs handled by
the Port of Los Angeles in 2003 had a commercial value of more than
$300 billion in container cargo, with significant tax revenues accruing
to the Federal Government. Similarly, according to the U.S. Customs
Service, users of the Port pay approximately $12 million a day in
Customs duties, with the Los Angeles Customs District leading the
Nation in total duties collected for maritime activities. As you can
see, the return on the Federal investment at the Port of Los Angeles is
real and quantifiable, and we expect it to surpass the cost-benefit
ratio as determined by the Corps of Engineers' project Feasibility
Study many times over. The Federal investment in the Channel Deepening
Project will ensure that the Port of Los Angeles, the Nation's largest
container seaport, remains at the forefront of the new international
trade network well into the 21st Century. The Channel Deepening Project
marks the second phase of the 2020 Infrastructure Development Plan that
begun with the Pier 400 Deep-Draft Navigation and Landfill Project. The
Port of Los Angeles is moving forward with the 2020 Plan designed to
meet the extraordinary infrastructure demands placed on it in the face
of the continued explosion in international trade. Mr. Chairman, the
Port of Los Angeles respectfully urges your subcommittee to include an
earmark of $35 million for fiscal year 2005 to support the U.S. Army
Corps of Engineers' continued construction of the Channel Deepening
navigation project on behalf of the Port of Los Angeles.
Thank you, Mr. Chairman, for the opportunity to submit this
testimony in support of continued Congressional support of the Channel
Deepening Project at the Port of Los Angeles. The Port has long valued
the support of your subcommittee and its appreciation of the port
industry's importance to the economic vitality of the United States,
and, in particular, the role of the Port of Los Angeles in contributing
to this country's economic strength.
______
Prepared Statement of the City of Stillwater
Chairman Domenici and members of the Energy and Water Development
Subcommittee, I thank you for the opportunity to submit this testimony
requesting the $1.8 million needed to construct Stage 3 of the
Stillwater, Minnesota flood control project. In 2001, the City
experienced its seventeenth flood since 1941, immediately after the
Corps completed construction work on Lock and Dam No. 3 20 miles South
of the convergence of the Mississippi River and the St. Croix River.
The first two stages of the project have been completed, and
Congress appropriated $2.3 million in the fiscal year 2002
Appropriations Bill to begin construction the critical Stage 3 of the
project. The $1.5 million in Federal funds requested this year, plus
State appropriated, and local funds should be sufficient to complete
the $13.2 million project.
The project is divided into three stages. Stage 1 included the
repair and reconstruction of the existing retaining wall which extends
1,000 feet from Nelson Street on the South to the gazebo on the North
end of the levee wall system. Stage 2 consists of the extension of the
levee wall about 900 feet from the gazebo North around Mulberry Point.
The completion of Stage 2 was delayed by floods of 1997, costing
the City and the Federal Government nearly a half million dollars.
After the waters subsided, it was discovered that the soil beneath the
planned levee extension was very unstable, requiring a revision of
plans, and the addition of another stage in the construction process.
The flood waters of the St. Croix River did not recede until August
of 1997. The construction area remained under water preventing
construction work to proceed as scheduled. Lowell Park, which extends
the full length of the levee wall system, several structures, and the
emergency roadway which is used to provide emergency medical assistance
for those using the recreational St. Croix River, and as a water source
for local fire departments, were all either under water or
inaccessible.
Phase I, the repair and reconstruction of the original levee wall,
was completed in the Summer of 1998. Work on Stage 1 was completed in
late Summer of 1997, and additional soil borings were taken for Stage
2. The soil was found to be very unstable, and unable to support the
levee system designed for Stage 2 of the project. The construction of
Stage 2 required remedial action, and was been designated as Stage 2S.
A contract was awarded for Phase 2S in November, 1998, and was
completed in 1999. Phase 2 was begun in the late Fall of 1999, and the
major construction work was completed at the end of the year 2000. Only
some landscaping, and finishing work on the levee wall system remains
to be done. The Design Memorandum schedule calls for the construction
of Stage 3 in fiscal year 2002, and to be completed in fiscal year
2003, according to the Corps schedule.
Stage 3 expands the flood protection system by constructing a 3
foot flood wall, and driving sheet piling below the surface to reduce
seepage and to provide a base for the wall. The flood wall will be
constructed about 125 feet inland from the riverbank. Stages 1 and 2
were critical to the protection of the fragile waterfront, and also, to
prevent minor flooding on the North end of the riverfront. Stage 3 is
the component that provides the flood protection for the City. The
rising elevation of the terrain, the flood wall, and minimal emergency
measures are designed to provide the City with up to 100 year flood
protection.
The Mayor, City Council Members, and Engineering staff all
understand that Stage 3 of the flood control project is essential for
the protection of life and property of the citizens, that the Stage 3
flood wall is a critical phase of the project, and that the project
must be completed at the earliest possible date. The Corps acknowledged
the necessity for all three stages of the project when the Design
Memorandum included plans for all three stages.
The U.S. Congress directed the Secretary of the Army acting through
the Chief of Engineers to proceed with the design and construction to
complete the Stillwater Levee and Flood Control Project under Section
124 of the Omnibus Appropriations Act for fiscal year 2005. The City
and the State of Minnesota have allocated matching funds for this work,
and it is in an escrow account for that purpose. The Corps of Engineers
have said the monies appropriated to begin this work on Stage 3 have
been redirected, and Federal funds are not available.
This fact is born out by the support of the Minnesota Department of
Natural Resources, the Governor of Minnesota, and the State
Legislature. The Minnesota Department of Natural Resources made funds
available based on this premise. The State has appropriated half of the
Non-Federal matching funds needed to complete Stage 3 of the project,
as well as for Stages 1 and 2. The City has provided the remainder of
the required matching funds, consequently, only the Federal share is
missing to complete the project.
STILLWATER--A NATIONAL HISTORIC SITE
The City of Stillwater is recognized for the 66 historic sites on
the National Register of the U.S. Department of Interior, as well as
other historic structures. Many of these sites are located in the flood
plain of the St. Croix River. Designated the ``Birthplace of
Minnesota,'' the City of Stillwater was founded in 1843.
When Wisconsin became a State in 1848, a portion of land West of
the St. Croix and Mississippi Rivers, including much of what is now the
Twin Cities of Minneapolis and St. Paul, was excluded. The prominent
citizens of the excluded area convened in Stillwater on August 26,
1848, passed a resolution to be presented to Congress asking that a
``new territory be formed,'' and that the territory be named
``Minnesota.'' Henry Sibley carried the petition to Washington, DC, and
in March, 1849, Minnesota Territory was established. Stillwater then
became the only city in the Nation to become the county seat of two
different territories, St. Croix County in Wisconsin, and Washington
County, Minnesota. The Stillwater Convention firmly established
Stillwater as the ``Birthplace of Minnesota.''
Stillwater grew and prospered as the Lumber Capitol of the Midwest.
Billions of feet of timber was cut, and floated down the St. Croix to
the nine sawmills that were located on the riverbank of the St. Croix
at Stillwater between 1848 and 1914. More logs were carried through the
boom site North of Stillwater than any other place in the United
States. Three billion feet of lumber was produced by the nine lumber
mills in the 1880's alone. All nine lumber mills wee located on the
riverfront The lumber from the Stillwater mills were the primary source
of wood-constructed buildings throughout the Midwest.
Much of the lumber was carried down the St. Croix to the
Mississippi River, and on to St. Louis, the ``jumping off'' point for
the Westward movement. Sawdust and wood debris from these mills helped
created the fragile riverbank that the levee wall system protects
today.
Later in the 19th Century, five railroads carried lumber from
Stillwater Westward to Nebraska, North and South Dakota, and points
West, as the Nation expanded beyond the Mississippi River into the
plains States. Many of the Midwest's oldest buildings still carry the
mark of the Stillwater mills.
As a result of Stillwater's place in the history of the Midwest,
the lumber industry, the unique homes built by Minnesota's first
millionaires, and the birthplace of both Minnesota Territory and the
State of Minnesota, 66 sites are included on the National Register of
Historic Places. All of the downtown area, which is located in the 100-
year flood plain, is included in this recognition.
THE IMPACT OF LOCK AND DAM NO. 3 ON FLOODS--STILLWATER
The Lock and Dam No. 3 was constructed in 1937-38 on the
Mississippi River at Red Wing, Minnesota. The Lock and Dam construction
raised the level of the St. Croix at Stillwater by 8 to 10 feet. It has
made the City of Stillwater vulnerable during periods of high water and
flooding of the St. Croix since that time. Records prove that the lock
and dam construction, raising the water levels of both the Mississippi
and the St. Croix River, has markedly increased the incidence of
flooding at Stillwater. The culpability of the Corps is clearly
evident.
The Mississippi and the St. Croix Rivers merge about 14 miles South
of Stillwater. When constructing the Lock and Dam at Red Wing in 1938,
the Federal officials recognized that detaining the flow of the
Mississippi would back up the water in the St. Croix at Stillwater. A
1,000 foot levee wall system was constructed at Stillwater by the WPA
under the supervision of the Corps to protect the fragile waterfront.
From 1850 to 1938, the 88 years prior to the construction of Lock
and Dam No. 3, only four floods were reported by historians. None were
the result of Spring snow melts. The 1852 flood was the result of a
cloudburst, the destruction of a dam built on McKusick Lake above the
City, and was not the result of the flooding of the St. Croix River.
The floods of June 14, 1885, and May 9, 1894, as well as the 1852
flood, were all the result of cloudbursts in or above Stillwater. These
floods resulted in both loss of life and significant property losses in
the City.
Since the completion of the Lock and Dam 60 years ago, the St.
Croix has flooded on 17 occasions, and only four times in the 90 years
preceding the construction of the Lock and Dam. None of the four were
the result of high water on the St. Croix River. Four floods were
recorded in the 1940's, immediately after the completion of the lock
and dam at Red Wing. The 1952, 1965, and 1969 floods were record-
breaking floods, the result of a heavy snow fall, and early Springs
rainfall, coupled with warm weather. Record flooding was avoided in
1997, by the early planning of City officials, the construction of a
huge emergency levee requiring thousands of truck loads of clay and
sand, the work of hundreds of volunteers, and luck in the avoidance of
a severe rainstorm in or around the flood event.
The 2001 flood was second worst flood in the 160 year history of
the City. It was only topped only by the flood of 1965. The careful
planning and preparation by the City, hundreds of volunteer workers
included high school students and younger, local citizens from
Minnesota and Wisconsin, and dozens of inmates from the near-by State
prison were given credit for preventing a major catastrophe for the
City. The water pump rental, thousands of yards of sand and fill, and a
``round the clock'' line up of trucks, cost the Federal, State, and
local governments nearly $1.3 million.
The planning and preparation of City officials, and adequate lead
time have allowed the construction of levees high enough to avoid
massive flooding in the historic section of the City during most of the
floods, and to prevent further loss of life. However, a 4-5 inch
rainfall during high water levels would be devastating to the City.
Such rainfalls are not infrequent in the St. Croix Valley, and can not
be anticipated. A major concern is the safety of the volunteers.
Working around heavy equipment and massive trucks, day and night, and
on top of 20 foot emergency levees over swirling flood waters, it is
only a matter time until we have serious injuries or loss of life.
A wet Fall that saturates the soil, heavy snows during the Winter,
extended warm spells in the Spring, coupled with persistent Spring
rains, and cloudbursts as experienced in the past, will all come
together in the same year at some point in time. At that point, the
City's emergency responses to flood control will not be sufficient to
cope with the flood waters.
History bears out the City's contention that the raising of the
river levels by ten feet in 1938, when Lock and Dam No. 3 was
constructed, greatly increases the flooding potential faced by the City
during the past 60 years. On this basis alone, the Federal Government
must share in the responsibility for providing a remedy. The
construction of the Stage 3 flood wall at Stillwater will provide this
safety.
ENVIRONMENT THREATENED DURING FLOOD EVENTS
The St. Croix River was designated as one of the first Wild and
Scenic Rivers by Congress and is protected under both Federal and State
laws, as well as by local ordinances. The St. Croix River is carefully
monitored by the Federal Government, an Interstate Commission, and the
DNR's by both the States of Wisconsin and Minnesota.
The City's concern is the trunk sanitary sewer line and pumping
stations for the City of Stillwater. The sewer line runs adjacent to
the riverfront and is frequently under water during major flood events.
More than 2 million gallons of raw sewage is handled daily by the sewer
line and pumping stations that follow the riverfront. Engineers have
advised the City that extended flooding of the flood plain could result
in the rupturing of the trunk line or the surcharging of the pumping
stations.
Either of these event would result in the direct flow of raw sewage
into the St. Croix River. It would be impossible to repair the system
during the high water of a flood event. During the 1997 floods, one
pumping station and a portion of the trunk sewer line remained under
water for 95 days, and required careful monitoring by the City workers.
The protection of the river is not only the dominant theme of the
State and Federal governments, but also by the counties and
municipalities that line the riverbanks of the St. Croix. However, the
greatest protectors of the river are the citizens themselves who take
advantage of the crystal blue waters of the St. Croix for fishing,
boating, and other recreational and scenic purposes.
The topography of the City of Stillwater requires the location of
the trunk sanitary sewer line and pumping stations at the base of the
City's hub, adjacent to the riverfront. The City is built on two hills
that slope toward the river, abruptly interrupted by sandstone bluffs
extending 50-75 feet high above the river level. The sanitary sewer
system serving the 16,000 Stillwater residents flows into the trunk
sewer line that runs parallel to the riverfront. It can not be moved.
The 2 million gallons of raw sewage handled by the system each day, is
gathered in the trunk sewer line and pumped Southward to the water
treatment plant.
According to engineering studies, the trunk line and the pumping
stations are both susceptible to rupture or surcharging during periods
of flooding. Little could be done to stop the flow of raw sewage into
the St. Croix until the water receded. During recent floods, it is not
unusual for high water levels to persist for as much as 2-5 months.
Such an event could release 120 million gallons of raw sewage into one
of America's most pristine rivers over that period of time. If for no
other reason than the protection of the river, the City believes the
Stage 3 flood wall must be constructed with no delay.
LEGISLATIVE BACKGROUND
The Stillwater Flood Control and Retaining Wall project first was
authorized in section 363 of the Water Resources Development Act (WRDA)
of 1992. An allocation of $2.4 million was made in the Energy and Water
Development Appropriations Act of 1994.
A Committee Report described the project in three parts--to repair,
extend, and expand the levee wall system on the St. Croix River at
Stillwater, Minnesota:
--``To repair'' (Stage 1) the original existing levee wall system
constructed in 1936;
--``To extend'' (Stage 2) the original wall by approximately 900 feet
to prevent the annual flooding that occurs at that location;
and
--``To expand'' (Stage 3) the system by constructing the flood wall
about 125 feet inland from the levee wall system to protect the
downtown and residential section in the flood plain.
In 1995, the Design Memorandum confirmed the cost estimate for the
project was much too low, and the project was reauthorized for $11.6
million by Congress in the 1996 WRDA legislation. In 2001, the Corps
estimated the Federal cost at $9.86 million, the non-Federal cost at
$3.29 million, and the total cost of the project to be $13.15 million.
Congress appropriated $2 million in fiscal year 2002 for the
construction of the Stage 3 flood wall. The Corps chose not to use
these funds for that purpose, and were redirected to other projects.
Congress then directed the Corps to design and construct the Stage 3
flood wall in Section 124 of the Omnibus Appropriations Act for fiscal
year 2005. While the Corps has now met with the City, and appears
willing to move ahead as Congress as instructed, we are awaiting Corps
action to prepare a Project Cooperation Agreement for all to sign.
Since the reauthorization of the project 5 years ago, and the
completion of the feasibility study, both Stage 1 and 2 have been
completed. Only the completion of Stage 3 will provide the City with
the flood protection that is critically needed. The reconstruction of
the existing levee wall system, the extension of the levee wall, and
the construction of the flood wall are all critical to the safety of
the citizens, the protection of property, and the preservation of
historic sites that contributed to the growth and expansion of the
Midwest in the last half of the 19th Century.
SUMMARY
The Mayor and Council for the City of Stillwater, Washington County
Officials, the Governor and Minnesota State Legislature, and bipartisan
support of Minnesota Representatives and Senators in Congress, all
recognize the significant importance of completing this project by
constructing the Stage 3 flood wall on the St. Croix River at
Stillwater. They are committed to the completion of the Flood Wall
Project at Stillwater. It is critical to the protection of property,
the preservation of our history, the respect of historic Indian sites,
and the safety of our citizens and their homes and business.
We respectfully urge the Energy and Water Development Subcommittee
for Appropriations to allocate the $1.8 million needed to begin
construction of the Stage 3 flood wall in the fiscal year 2005
Appropriations Bill. If you have questions or would like additional
information regarding this project, please call on us.
______
Prepared Statement of the City of Granite Falls, Minnesota
Chairman Domenici and members of the Appropriations Subcommittee, I
appreciate the opportunity to submit this testimony on behalf of the
City Council and the citizens of Granite Falls, Minnesota. We are
requesting $1.2 million in Federal funds for the development of the
Detailed Design Report (DDR) plans and specifications, and critical
preventative measures to protect the city from future flooding of the
Minnesota River.
This request is based on the ``Supplement to the Locally Preferred
Plan for Flood Damage Reduction, January, 2002'' prepared on behalf of
FEMA, the City, and information from the U.S. Army Corps of Engineers,
Section 205 study not yet completed. This project was authorized in the
Transportation and Infrastructure Committee bill, the Water Resources
Development Act of 2003. The project has now been authorized for $8
million in Federal funds in H. Res. 2557, Sec. 3061 as a Section 205
project, in accordance with the Water Resources Development Act of 1986
(100 Stat. 4184) as needed.
The problems confronting the City require a carefully planned
project. The geological features of the terrain discourages the
construction of diversion channels due to the granite subsurface of the
soil. Homes and businesses are being relocated using FEMA, State and
local resources. The existing uncertified and inadequate levee system
will be improved to provide adequate protection for the communities,
and the Municipal Power Plant adjacent to the Minnesota River will
require relocation.
THE CITY OF GRANITE FALLS
The City of Granite Falls is a community of slightly more than
3,000 citizens, is located in West Central Minnesota about 122 miles
west of St. Paul. The Minnesota River runs through the northern and
eastern portions of the City, and is directly adjacent to the downtown
area. The majority of the City's residential and commercial properties
are located on the west bank of the Minnesota River in Yellow Medicine
County. Low-lying residential areas on the north end of the City,
structures in the commercial business district along the river, and
residences located next to the secondary river channels in the
southwest part of the City are especially vulnerable to flooding.
RECENT DISASTERS
While the river represents a valuable resource to the community, it
has taken a severe toll on residents and businesses during Spring
floods. The 1997 floods which devastated much of Western Minnesota and
North Dakota did not spare Granite Falls. The Flood drove many from
their homes and their downtown businesses, and resulted in millions of
dollars in damages. Virtually every downtown business was flooded. More
than $850,000 was spent by the city, and another $175,000 by the Corps
of Engineers to fight the flood.
Hundreds of volunteers from Granite Falls area and the State
prevented further devastation as the Minnesota River has a peak
discharge of 53,000 cubic feet per second. That's more than 3 million
cubic feet of flood water per minute. The rushing water was within
inches of the top of the temporary dike as volunteers continued to
stack sand bags. If the water had topped the dike, literally dozens of
the workers' lives would have been severely endangered. Total costs and
damages exceeded $5 million.
In July of 2000, the city was hit by an F-4 tornado. An F-5 tornado
is the top of the scale. One person was killed, 14 badly injured, and
325 homes were either totally destroyed or severely damaged. The
tornado caused more than $26 million in damages in the community.
The following year, 2001, the City was again hit by another record
flood event. Though not as severe as the 1997 flooding, damage was
reduced significantly by careful City planning and preparation with
Federal and State governmental units. Even so, the costs to fight the
flood exceeded half a million dollars for the City and the Corps of
Engineers, and much of the downtown commercial area was evacuated.
Other significant floods have occurred in 1951, 1952, 1965, 1969,
and 1994. While floods have cost the community millions of dollars in
extensive property damage and economic hardship, the primary concern is
the significant risk to the hundreds of volunteers whose work is
required building levees during flood events to protect the homes and
business.
Preparation for fighting disaster costs have reached nearly $4
million in the past 4 years. That amounts to thousands of dollars to
every property owner in the City. Other significant flood events have
occurred in 1951, 1962, 1965, 1969, and 1994.
While floods have cost the community millions of dollars in
extensive property damage and economic hardship, the primary concern is
the significant risk to the hundreds of volunteers whose work is
required building levees during flood events to protect the homes and
businesses. Total flood damages and costs are more than $30 million
from 1997 through 2001.
Granite Falls has received financial support from FEMA, the Corps
of Engineers, and the State of Minnesota to clean up after the
disasters and to repair damages. Funds have been received to repair
streets, housing rehabilitation and construction, economic development,
and special services. All the help has been directed toward restoration
after the floods and tornado event, but no funds have been available to
prevent future flooding.
CORPS OF ENGINEERS SECTION 205 STUDY
Following the 1997 flood, the Corps of Engineers initiated a
Section 205 study in May, 1998, to evaluate the extent of the flooding
problem in Granite Falls, and to explore possible remedies. The study
is essentially complete, but has not been released to date. The major
problems of cost and funding level addressed in the 205 study have been
resolved in the project authorization in H. Res. 2557.
STUDIES CONDUCTED
The City, through a FEMA project grant under the direction of the
Minnesota Department of Natural Resources MN/DNR, conducted a study of
the flood problems confronting Granite Falls. The overall objective of
the study was to evaluate hazards for the Granite Falls area, and to
develop preliminary evaluation and prioritization for those hazards.
The Report states, ``Because of the tremendous impacts of flooding
on the Granite Falls community, and the relative frequency of flooding
events, the report begins with an all hazard evaluation, but then
focuses on flood hazards, and presents mitigation options and
preliminary costs for implementing those options.''
The Report evaluated each area of the community, determined the
risk factors, and suggested options available to protect the area
against flooding. In the conclusion of the Report, it was recommended
the most economical solution to provide the necessary protection was
buy out many of the properties and move them to a location outside the
flood plain. This work is currently in progress.
The elevation of other areas would have to be raised, pump stations
would need to be installed, some levees constructed, and the sanitary
lift station and the water plant would need to be relocated. It is
estimated the cost of this work would be approximately $12 million.
The Supplement to the Locally Preferred Plan (SLPP) provides a
level of flood protection for flood events up to the 500-year event.
The 1998 Corps of Engineers 205 study indicates the 500-year level of
protection is about the same as the 100-year flood plus 3 feet of
freeboard. This level of protection is necessary as the result of a
reevaluation by FEMA which indicated that the current level of
protection for Granite Falls was violated in both the 1997 and the 2001
flood events.
The SLPP identifies seven areas severely impacted by flooding,
suggests the remedial action needed, and the cost of such work.
Relocation costs are not included in this report. The City believes
that with the financial assistance received from FEMA to relocate many
of the structures in low lying areas, the remaining project needs are
appropriately addressed under flood protection programs administered by
the Corps of Engineers.
The Locally Preferred Plan includes the removal of about 41
structures in the lower areas of the City, including several in the
commercial district. FEMA has provided the funds for 25 structure
moves, leaving only 15 additional structures to be moved as a part of
the project.
APPROPRIATION REQUEST
The city requests $1.2 million from the committee for the purpose
of the development of the Detailed Design Report, preparation of plans
and specifications, and the placement of pumps stations at two of three
critical locations in the city. These pump stations will provide some
immediate flood relief during an emergency, but are also needed
permanently as a part of the total project.
Thank you for your consideration of this request. And may I also
take this opportunity to express our appreciation to the St. Paul
District Office of the Army Corps of Engineers for their help and
assistance during the crisis we have experienced in recent years. We
will be happy to respond to any questions you may have regarding the
needs of the city, and the flood protection project.
______
Prepared Statement of the City of Crookston, Minnesota
Chairman and members of the Appropriations Subcommittee, I
appreciate the opportunity to submit this testimony on behalf of the
City Council and the citizens of Crookston, Minnesota. We are
requesting $1.2 million in Federal funds for the development of the
supplement to the environmental assessment study, to prepare the
design, and to initiate construction work in the fiscal year 2004
Appropriations Bill. The purpose of this request is to provide flood
protection for the Chase/Loring and Sampson neighborhoods in the City.
This request is based on the Feasibility Report Supplement: Local Flood
Control completed on April 30, 2002.
First, we would like to thank you and the members of this committee
for the $2.202 million appropriation you provided for the Crookston
Flood Control Project in the fiscal year 2003 Appropriation Conference
Report. These funds made it possible to complete the work on Stage 2 of
the project.
Stages 1 and 2 of the project has provided 100-year flood
protection for Thorndale, Woods, and Downtown/Riverside neighborhoods.
This is a tremendous step forward, and we are very appreciative of the
support given us by this committee and the Army Corps of Engineers.
However, the project still leaves two of our most vulnerable
neighborhoods, Sampson and Chase/Loring, fully susceptible to future
flooding when the Red Lake River again leaves its banks.
The City of Crookston is located in the Red River Valley of Western
Minnesota, in Polk County, 25 miles East of Grand Forks, North Dakota.
The Red Lake River winds its way through the City from its source at
the Upper and Lower Red Lakes, and flows into the Red River at Grand
Forks. The early settlers in Crookston built their homes in the crooks
of the river to be close to the water supply vital to their existence.
As a result, five neighborhoods were established that became the City
of Crookston. The population of the City has remained constant over the
past decade at about 8,200 citizens.
The community was settled in 1872, when the first railroad route
was announced crossing the Red Lake River where Crookston now stands,
and later, extending to Canada. The economy of Crookston is based
primarily on agriculture. It is the home of the University of Minnesota
Crookston, a technology oriented school with a full academic program
enrolling approximately 2,500 students.
The City of Crookston has two recent major flood events--1997 and
again in 2001. The flood of record was at a stage of 27.3 feet in 1969,
and the 1997 flood exceeded it with a stage of 28.6. The 2001 flood on
the Red Lake River at Crookston was 26.38 feet or 11 feet above flood
stage. For both flood events, the city was able with the help of the
Corps of Engineers and the State of Minnesota to take extreme emergency
actions to prevent catastrophic losses throughout the community.
The 1997 flood came within inches of inundating the community with
huge potential for loss of life. This flood further emphasized the need
for a long-term flood damage reduction project to protect the citizens
and the community.
These floods also demonstrated that flood damage reduction must be
at a 100-year level, consistent with the authorized project, and needs
to be looked at from a total community perspective. ``Piecemealing'' a
project, by protecting only certain areas, will not eliminate the need
for significant federally subsidized flood emergency reimbursements in
the future. Not including State and local expenditures, use of
resources, and purchase of materials, the Federal costs alone incurred
in 1997, totaled nearly $1.5 million. State and local costs were
estimated at a similar amount, whereby, the 1997 flood costs totaled
nearly $3 million.
Both floods contributed to the progressive deterioration of the
emergency levee system. The reliability of this system is now much
worse than what was reported in the pre-flood 1997 feasibility report.
The recent flood and the documented and visual impact of the 1997 flood
at Grand Forks, ND, and East Grand Forks, MN demonstrated that failure
of the emergency system would be catastrophic. Not only would many
structures incur irreparable damage, the social and economic impact
from the loss of property value/tax base and cohesion would devastate
the community, potentially threatening the long-term viability and
survival of Crookston.
Due to recent flood events, the views of the City and its
residents, the emphasis of the State of Minnesota Department of Natural
Resources through the flood mitigation program, an efforts of the
Minnesota Flood Relief Task Force, there is a renewed commitment to
provide long-term flood damage reduction for the three remaining
neighborhoods.
The reason that these areas were not included in the 1997
feasibility study was because these areas were incorrectly considered
independent, and concern that the overall benefits may not cover the
costs to provide protection. The primary reason was a low cost-to-
benefit ratio was real estate costs. There were too many structures
that needed to be relocated or purchased.
Reassessing earlier alternative flood damage reduction plans, there
are further justifications for protecting a larger portion of
Crookston, and ways to reduce costs, while continuing to maintain the
necessary degree of flood damage reduction. Likewise, the benefits in
some of these areas increased, based on new benefit categories
identified in the Grand Forks, ND, and East Grand Forks, MN December
1997 feasibility study. The State of Minnesota has already committed to
full protection for all of the six neighborhoods in the City of
Crookston.
The cost/benefit ratio for the three stages of the project is 1.03.
Evaluation by the Corps of Engineers determined a cost benefit ratio
for the Chase/Loring and Sampson authorized in the House WRDA at 1.25.
Continuing assessment of the project plans will increase the project
benefits even further. The City believes that the project should not be
assessed incrementally, but as a total project as were other
communities severely affected by the 1997 and 2001 floods in the Red
River Valley.
All of the property owners in Crookston have assessed themselves
flood protection fees for the past 11 years to provide the local funds
needed to make their families safe during flood events. Without
providing the protection needed for the Sampson and Chase/Loring
Neighborhoods, the work is only half done. Since all of the citizens
have been paying these assessments, it is not right that the Crookston
Flood Control Project would protect only half the community.
CONDITIONS CHANGE SINCE 1997
Since the completion of the feasibility report in early 1997,
events have greatly impacted flood damage reduction for the city. The
floods of 1997 and 2001 have been a wake up call regarding the
vulnerability of the City and its residents. There is no way that the
1997 feasibility study could have predicted these events. They
demonstrated the extent of the deterioration of the existing emergency
system, and new thinking on how to more cost effectively reduce flood
damages in unprotected areas. The replacement of the city dam is now
underway.
The revised engineering assessment of the trunk sanitary sewer
system located in the Sampson addition, and the electrical distribution
substation located in the Chase/Loring addition. Although, not a
change, the revised engineering assessment of the sanitary sewer system
found conditions that were slightly different from the analysis in the
1997 feasibility report. Several key essential features of the sanitary
sewer system for the entire community are located in the Sampson
neighborhood. Losses to these features would certainly cause the system
to fail, including the system located in areas protected by the Federal
project.
Similarly, the electrical distribution substation located in the
Chase/Loring neighborhood services those areas protected by Stages 1
and 2 of the project. The loss of the substation would at least affect
most of the neighborhoods, including those protected by the original
authorized project. It would at least temporarily result in a loss of
power, and the loss of critical flood damage reduction measures (i.e.
pump stations) of the permanent project and to the sanitary sewer
system.
FLOODING EVENTS AND THEIR CAUSES
Floods occurring over the past 40 years have created significant
damage to homes and businesses, and have resulted in the loss of lives
as well. They include the flood events of 1965, 1966, 1967, 1969, 1978,
1979, 1996, and 1997. Floods have been documented at Crookston as early
as 1887. The 1950 flood, though not the maximum flood of record,
created the most damage to the City and resulted in the deaths of two
citizens from the community.
Between 1950 and 1965, clay levees were constructed through local
efforts in an attempt to ameliorate the damages from the flooding of
the Red Lake River. The floods of 1965, however, demonstrated these
efforts were not adequate to hold back the torrents of water during
significant flood events. While certain areas of the City received some
flood protection, severe damages occurred in the South Main Street
area. This section of the City has since been totally cleared.
The 1969 flood established new high water marks, and again, it was
necessary to carry out extreme emergency measures. These efforts were
successful in protecting the community from severe damages. Recognizing
the need for more protection, another locally financed project was
initiated, extending, enlarging, and raising the height of the levee
wall system.
The flood of 1997, was the ``grandaddy'' of all floods. It
established the highest water mark in recorded history when the Red
Lake River crested at 28.6 feet above flood stage, the equivalent of a
three-story building. It is described as a 500-year flood event.
Only the careful planning and preparation by City officials in
cooperation with the Corps of Engineers, the State of Minnesota, FEMA,
the National Guard, and many private citizens, were damages reduced,
and fortunately, no lives were lost. Prior to the crest of the flood,
the City of Crookston completed the work of adding two feet of clay and
sandbags to the entire levee system throughout the town. The Corps of
Engineers constructed clay dikes as a second line of defense,
sacrificing a few homes for the good of many others. As a precautionary
measure, 400 residents evacuated from their homes during the height of
the flood. These efforts spared Crookston from the devastation
experienced by neighboring towns, allowing the City to provide for
8,000 persons evacuated from their homes in nearby communities, But
this disaster and the potential devastation that such floods can bring,
emphasized the critical importance of replacing the temporary earthen
and clay dikes with a well-planned, permanent flood control system.
There are several causative factors that have created flood
conditions for the Red River Valley and the City of Crookston. The Red
River of the North did not carve out the valley, it merely meanders
back and forth through the lowest parts of the floor of the ancient
Glacial Lake Agassiz.
With no definitive flood plain to channel flood torrents, the slow-
moving flood waters quickly overrun the shallow river banks and spread
out over the flat floor of the former glacial lake bed. The small
river's gradient is on one-half foot per mile, as opposed to areas in
Southwestern Minnesota where in one instance, the gradient establishes
a 19 foot drop in one mile. Both extremes have created problems.
The Red Lake River flows into Crookston from the Northeast, winds
it way through the City, and flows out of the City, turning in a
Northwesterly direction toward its confluence with the Red River at
Grand Forks, North Dakota. The merged rivers then flow due North into
Winnipeg, Manitoba, Canada. As the snow melts in the Southern portion
of the valley, ice often remains in the channel to the North. Ice and
other debris flowing North pile up against the river ice creating ice
dams. These barriers back up the water and increase the flood crest
upstream.
The extremely level terrain also creates a phenomenon during the
Spring thaw which is called ``overland flooding.'' As the snow melts,
the huge volume of water can overwhelm the network of shallow ditches
and creeks. Unable to enter the choked stream channels, the water
travels overland until it meets small terrain barriers such as railroad
beds and road grades, creating huge bodies of water.
In addition to the topography of the area, a combination of factors
such as agricultural drainage, the loss of wetlands, the Federal
governments work in the Red River Basin, and the construction of the
county ditch systems, all these factors have contributed to the
vulnerability of the area.
KEY POINTS OF PROJECT DEVELOPMENT
1992--Feasibility Cost Share Agreement signed.
1997--Feasibility Report and Environmental Assessment completed.
1997--National Economic Development optimizational analysis waived
to provide the entire project with 100-year flood protection.
1998--Preconstruction engineering and design efforts begun.
1999--Project authorized for construction in the Water Resource
Development Act of 1999.
2000--Plans, specifications, and design work for Stage 1 completed.
2000--Congress appropriates $1 million for Stage 1 construction.
2000--Plans and Specifications for Stage 2 commenced.
2001--Corps of Engineers total cost estimates for the project to be
$10.8 million.
2001--Congress provides $2 million for the construction of Stage 2
of the Crookston Flood Control Project in the fiscal year 2002 Energy
and Water Appropriations Bill.
2002--Bids were accepted and construction contract awarded for
Stage 2 work.
2002--Congress provides $3.202 million to complete Stage 2
construction work.
2002--The Feasibility Report Supplement was completed.
2003--Construction work continues on Stage 2.
2003--House Transportation and Infrastructure Committee
reauthorizes Crookston Flood Control Project to include Sampson and
Chase/Loring neighborhoods.
2003--Request made to Congress for $1.2 million to provide flood
protection for the Sampson and Chase/Loring neighborhoods.
2003--Senate delays passage of the Water Resources Development Act
until 2004.
2004--Senate Environment and Public Works schedule WRDA mark-up for
Spring, 2004.
NON-FEDERAL CONTRIBUTIONS TO THE PROJECT
The citizens of Crookston have demonstrated their commitment to the
project each year since 1997. Every year for since 1997, they have
voted to assess themselves a flood control project fee, over and above
their property taxes. This action by the community has resulted in
raising about $1.4 million up to the present time. One third of these
local funds were used to meet part of the 50 percent match for the $1.2
million feasibility study, and the remainder will be used as a part of
the non-Federal match for the construction Stages of the flood control
project.
The State of Minnesota has also made a significant contribution to
the project. They have appropriated $3.3 million for the dual purpose
of providing funds to match the Federal contribution, and to buy out
homes that have been lost in the construction of the flood control
measures. Nineteen families were required to lose their homes to the
project, including one farm. The State funds were used both for the
purchase of the homesteads, and the relocation of the affected
families.
For these reasons, we respectfully request this subcommittee to
appropriate $1.2 million of Federal funds in the fiscal year 2004
Appropriations Act to be used for the environmental assessment,
preconstruction costs, and immediate work on the protection of the
electrical substation and the pumping stations to avoid severe
personal, ecological and environmental disasters in the Community. The
committee's favorable response to this request will prevent any delays
affecting the completion of the project, and avoid cost overruns that
inevitably occur when construction is delayed.
In closing, I would like to say there is nothing more important to
me as Mayor, and to each Member of the Crookston City Council, than the
safety of our citizens, and the protection of their homes and property.
We can not give them this assurance until we have completed this flood
control project. May I also say that our association with the St. Paul
District of the Army Corps of Engineers throughout this process has
been outstanding. They are an extraordinary organization, working on
the scene during flood conditions, and assisting us as we attempt to
resolve this problem that threatens our citizens. We could not ask for
a better partner in this project.
Thank you for the opportunity to bring this important matter to
your attention through this statement. I will be delighted to respond
to any questions you may have about the project.
______
Prepared Statement of the Southeastern Federal Power Customers, Inc.
Mr. Chairman and members of the subcommittee, on behalf of the
Southeastern Federal Power Customers, Inc. (``SeFPC''), I am pleased to
provide testimony in reference to the administration's fiscal year 2005
budget request for the Army Corps of Engineers (``Corps''). My
testimony will focus primarily on the budget request for the Corps'
South Atlantic Division (``SAD'') and the Nashville District of the
Great Lakes and Ohio River Division (``LRD''). In addition, the SeFPC
customers would like to express our interests related to proposed
legislation that would authorize direct funding for Corps' Operations
and Maintenance (``O&M'') activities at Federal hydropower projects.
The SeFPC has enjoyed a long and successful relationship with the
Corps' SAD and LRD offices that has greatly benefited the approximately
5.8 million customers of the SeFPC members. As the subcommittee is
aware, the Corps is responsible for operating and maintaining Federal
hydropower generating facilities. The Southeastern Power Administration
(``SEPA'') then markets the energy and capacity that is generated from
the Federal projects in the Southeast. The SeFPC represents some 238
rural cooperatives and municipally owned electric systems in the States
of Alabama, Georgia, Mississippi, Kentucky, North Carolina, South
Carolina, Florida, and Virginia, which purchase power from SEPA. In
some cases, SEPA supplies as much as 25 percent of the power and 10
percent of the energy needs of SeFPC customers, who greatly rely on
this power.
DRASTIC CUTS IN THE CORPS' BUDGET
The SeFPC membership is dedicated to providing reliable and
economic power for its consumers. We therefore are concerned that the
President has proposed a 13 percent reduction in the Corps' budget for
fiscal year 2005. With these reductions in funding, the Corps will not
be able to undertake the O&M and Renewals and Replacements (``R&R'')
work necessary to ensure the long-term reliability of the Southeastern
Federal hydropower facilities. We are particularly concerned about the
effects of the proposed budget cuts on ongoing O&M work on
infrastructure of hydropower projects whose output is marketed by SEPA.
The proposed reductions will particularly impede the Corps' work in the
following SEPA projects: Walter F. George, J. Strom Thurmond, John H.
Kerr, Allatoona, and Carters.
We also are concerned the President's budget request has zeroed out
funds for construction at many of the projects operated by the Corps.
We remain especially troubled by the badly needed rehabilitation of
generating facilities in the Cumberland River System operated and
maintained by LRD, as well as other Federal hydropower generating
facilities throughout the Southeast. The age of many of the
hydroelectric generating facilities in SEPA's service area is nearing
the 50-year mark, when major rehabilitations are critical if the
projects are to continue. Regrettably, the fiscal year 2005 budget
request does not place a high priority on these critical needs.
When a generating unit becomes inoperable, SEPA may be forced to
pursue the purchase of expensive replacement power; this could result
in a reduction of energy and capacity, forcing the SeFPC members to
purchase expensive capacity elsewhere. This has occurred so frequently
in the last several years that the new SEPA rate design now includes a
charge by customers to cover this replacement power. Such a result is
inappropriate because preference customers already have contributed to
the Corps' O&M and R&R expenses, in essence double-charging the
customers and their consumers. In fact, revenue from the rates paid by
the preference customers has enabled SEPA to repay on time the original
investment incurred to construct these projects. However, when
generating units deteriorate, reliability decreases, and O&M expenses
greatly increase.
We are working on a long-term customer funding proposal that would
facilitate this badly needed R&R work at hydroelectric facilities in
the LRD. We anticipate, however, that this long-term initiative will
not be finalized for a number of years. In the meantime, some of these
facilities will not be able to continue generating without Federal
funds.
ADMINISTRATION'S PROPOSAL FOR DIRECT FUNDING OF O&M
It is important to note that the relationship of the Corps, SEPA,
and the SeFPC, forged pursuant to the Federal Power Marketing Program,
is separate and distinct from other Corps' activities. The Federal
Power Marketing Program is designed to pay for itself--consumers are
responsible for repaying the Federal taxpayer investment in the Corps'
multi-purpose hydroelectric facilities. In the rates charged by SEPA to
preference customers, a portion of each rate is devoted to future O&M
and R&R activities at these facilities. In turn, these revenues are
deposited in the U.S. Treasury and used to reimburse Congressionally
appropriated funds for O&M and R&R expenses at the Corps' hydropower
facilities. Funds collected from consumers may also be used for the
hydropower share of joint costs of dam activities that also benefit
recreation, navigation and flood control. To date, preference customers
have paid in SEPA rates over $114 million in excess of amounts spent by
the Corps on O&M and R&R.
The administration's fiscal year 2005 budget request proposes to
alter this funding arrangement. This year's budget includes a provision
from the President's fiscal year 2003 and fiscal year 2004 requests
calling for direct funding of routine O&M for hydropower facilities
marketed by SEPA and the other Federal PMAs. While we support the
concept of direct funding for O&M expenses, we want to ensure that any
direct funding legislation would include safeguards to prevent the
Corps from utilizing an alternative source of funding that could lead
to significant rate increases. Specifically, we believe the PMAs must
have the final say in determining the amount of funding available for
the Corps each year. In this regard, funds provided for Corps' O&M
should under this new mechanism have a neutral effect on rate levels.
Also, the Corps and the PMAs must consult with the PMA customers
regarding amounts the PMAs will collect for O&M activities. Finally,
the Corps must be prohibited statutorily from reprogramming funds
provided by the PMAs under this direct funding mechanism.
In advancing the direct funding proposal, the administration has
reduced funds in the Corps' O&M budget by $150 million. Therefore, in
the event the proposed legislation is not enacted, this funding should
be restored to the Corps' O&M budget.
Thank you in advance for your consideration of our comments on the
administration's fiscal year 2005 budget request for the Corps.
______
Prepared Statement of the City of Flagstaff, Arizona
Chairman Domenici, Ranking Member Reid, and distinguished members
of the subcommittee, thank you for allowing me to testify on behalf of
the City of Flagstaff, Arizona in support of $10 million in the Army
Corps of Engineers budget for the Rio de Flag flood control project in
fiscal year 2005. I believe this project is critically important to the
City, to northern Arizona, and, ultimately, to the Nation.
As you may know, Mr. Chairman, with this subcommittee's help last
year, Rio de Flag received $3.5 million to continue construction on
this important project. We are extremely grateful that the subcommittee
boosted this project well above the president's request, and we would
appreciate your continued support for this project in fiscal year 2005.
Like many other projects under the Army Corps' jurisdiction, Rio de
Flag received no funding in the president's fiscal year 2005 budget,
although the Corps has expressed capability of $10 million to continue
construction on the project. We are hopeful that the subcommittee will
fund the Rio de Flag project at $10 million when drafting its bill in
order to keep the project on an optimal schedule.
Flooding along the Rio de Flag dates back as far as 1888. The Army
Corps has identified a Federal interest in solving this long-standing
flooding problem through the Rio de Flag, Flagstaff, Arizona--
Feasibility Report and Environmental Impact Study (EIS). The
recommended plan contained in this feasibility report was developed
based on the following opportunities: (1) flood control and flood
damage reduction; (2) environmental mitigation and enhancement; (3)
water resource management; (4) public recreation; and (5) redevelopment
opportunities. This plan will result in benefits to not only the local
community, but to the region and the Nation.
The feasibility study by the Corps of Engineers has revealed that a
500-year flood could cause serious economic hardship to the City. In
fact, a devastating 500-year flood could damage or destroy
approximately 1,500 structures valued at more than $395 million.
Similarly, a 100-year flood would cause an estimated $95 million in
damages. In the event of a catastrophic flood, over half of Flagstaff's
population of 57,000 would be directly impacted or affected.
In addition, a wide range of residential, commercial, downtown
business and tourism, and industrial properties are at risk. Damages
could also occur to numerous historic structures and historic Route 66.
The Burlington Northern & Santa Fe Railway (BNSF), one of the primary
east-west corridors for rail freight, could be destroyed, as well as
U.S. Interstate 40, one of the country's most important east-west
interstate links. Additionally, a significant portion of Northern
Arizona University (NAU) could incur catastrophic physical damages,
disruptions, and closings. Public infrastructure (e.g., streets,
bridges, water, and sewer facilities), and franchised utilities (e.g.,
power and telecommunications) could be affected or destroyed.
Transportation disruptions could make large areas of the City
inaccessible for days.
Mr. Chairman, the intense wildfires that have devastated the West
during the last several years have only exacerbated the flood potential
and hazard in Flagstaff. An intense wildfire near Flagstaff could strip
the soil of ground cover and vegetation, which could, in turn, increase
runoff and pose an even greater threat of a catastrophic flood.
In short, a large flood could cripple Flagstaff for years. This is
why the City believes it is important to ensure that this project
remains on schedule and that the Corps is able to maximize its
capability of $10 million in fiscal year 2005 for construction of this
flood control project.
In the City's discussions with the Corps, both the central office
in Washington and its Los Angeles District Office also believe that the
Rio de Flag project is of the utmost importance and both offices
believe the project should be placed high on the subcommittee's
priority list. We are hopeful that the subcommittee will consider this
advice and also place the project high on its priority list and fully
fund the project at $10 million for fiscal year 2005.
As you may know, project construction and implementation of Rio de
Flag was authorized in the Water Resources Development Act (WRDA) of
2000. The total project cost is estimated to be $30,000,000 in and
above the reconnaissance study or the feasibility study. The Non-
Federal share is currently $10,500,000 and the Federal share is
currently $19,500,000. Final project costs must be adjusted based on
Value Engineering and final design features. It is important to note
the City of Flagstaff has already committed more than $10,500,000 to
this project, and an additional $2,000,000 in excess of its cost share
agreement. This clearly demonstrates the City's commitment to
completing this important project.
The City of Flagstaff, as the non-Federal sponsor, is responsible
for all costs related to required Lands, Easements, Rights-of-Way,
Relocations, and Disposals (LERRD's). The City has already secured the
necessary property rights to begin construction in 2004. Implementation
of the City's Downtown and Southside Redevelopment Initiatives
($100,000,000 in private funds) are entirely dependent on the success
of the Rio de Flag project. The Rio de Flag project will also provide a
critical missing bike/pedestrian connection under Route 66 and the BNSF
Railroad to replace the existing hazardous at grade crossings.
Both design and construction are divided into two phases. Phase I
construction will commence in 2004. Phase II of the project is
scheduled to commence in April of 2005.
Mr. Chairman, the Rio de Flag project is exactly the kind of
project that was envisioned when the Corps was created because it will
avert catastrophic floods, it will save lives and property, and it will
promote economic growth. In short, this project is a win-win for the
Federal Government, the City, and the surrounding communities.
Furthermore, the amount of money invested in this project by the
Federal Government--approximately $19 million--will be saved
exponentially in costs to the Federal Government in the case of a large
and catastrophic flood, which could be more than $395 million. It will
also promote economic growth and redevelopment along areas that are
currently underserved because of the flood potential.
In conclusion, the Rio de Flag project should be considered a high
priority for this subcommittee, and I encourage you to support full
funding of $10 million for this project in the fiscal year 2005 Energy
and Water Development Appropriations bill. Thank you in advance for
your consideration.
______
Prepared Statement of the Fifth Louisiana Levee District
In order to continue the essential level of construction on the
Mississippi River and Tributaries Project (MR&T), and to provide proper
maintenance of the completed portions, it is crucial that the $450
million, as requested by the Mississippi Valley Flood Control
Association for fiscal year 2005 (copy attached), be appropriated for
the MR&T Project.
Less than $10 billion has been invested in the MR&T Project since
its authorization following the great flood of 1927, but even in its
incomplete stage, the MR&T project has prevented over $180 billion in
flood damages and makes possible about $900 million in navigation
benefits each year.
Levee enlargements have been completed along most of the
Mississippi River Levee, with one exception being portions of the
system in Louisiana where people and property remain vulnerable to a
Levee that is the lowest in the MR&T system, even though it conducts to
the Gulf 41 percent of the total water runoff of the Nation. It is
imperative that construction of these Levees remain a top priority for
the administration and U.S. Army Corps of Engineers and that adequate
funding be provided.
We urge Congress to increase the $4.21 billion contained in the
President's Budget Request for the entire Corps of Engineers' Works
Program. At least $6.00 billion is required in order that the Corps not
halt or delay contracts, shut down facilities, or otherwise disrupt the
economic well-being of this Nation. Failure to provide this much needed
additional funding will have a serious detrimental effect on the
economic conditions in our already depressed area.
We continue to emphasize our objection to dividing the U.S. Army
Corps of Engineers into separate, smaller entities and transferring to
the administration of other established departments. It is vital to the
people of Louisiana and to the Nation that the Mississippi River and
Tributaries Project be completed as designed and as quickly as
possible. To transfer any part of the Civil Works mission, or to ``out-
source'' or contract-out positions in the Corps' Civil Works
organization, as proposed by the Secretary of The Army, will wreck the
current construction and maintenance time table and eliminate
approximately 32,000 current employees.
We urge your support for protection of the structure of the U.S.
Army Corps of Engineers as it currently exists.
We respectfully request that funds be increased for the Corps of
Engineers' Works Program and $450 million be appropriated for the MR&T
Project for the coming fiscal year.
MISSISSIPPI VALLEY FLOOD CONTROL ASSOCIATION--FISCAL YEAR 2005 CIVIL
WORKS REQUESTED BUDGET--MISSISSIPPI RIVER AND TRIBUTARIES PROJECT--
MAINTENANCE
------------------------------------------------------------------------
President's
Project Budget MVFCA Request
------------------------------------------------------------------------
Wappapello Lake, MO..................... $4,046,000 $6,352,000
Mississippi River Levees................ 7,665,000 14,915,000
Dredging................................ 20,515,000 20,515,000
Revetment and Dikes..................... 48,760,000 48,760,000
Memphis Harbor, TN...................... 1,205,000 2,010,000
Helena Harbor, TN....................... 385,000 510,000
Greenville Harbor, MS................... 29,000 412,000
Vicksburg Harbor, MS.................... 32,000 345,000
St. Francis River & Tribs, AR........... 6,080,000 8,805,000
White River Backwater, AR............... 1,316,000 2,260,000
North Bank, Arkansas River, AR.......... 146,000 146,000
South Bank, Arkansas River, AR.......... 122,000 122,000
Boeuf & Tensas Rivers, LA............... 2,160,000 2,160,000
Red River Backwater, LA................. 3,083,000 7,390,000
Yazoo Basin, Sardis Lake, MS............ 7,046,000 19,322,000
Yazoo Basin, Arkabutla Lake, MS......... 5,710,000 12,900,000
Yazoo Basin, Enid Lake, MS.............. 4,954,000 13,679,000
Yazoo Basin, Grenada Lake, MS........... 5,553,000 10,101,000
Yazoo Basin, Greenwood, MS.............. 585,000 2,035,000
Yazoo Basin, Yazoo City, MS............. 729,000 729,000
Yazoo Basin, Main Stem, MS.............. 1,013,000 3,966,000
Yazoo Basin, Tributaries, MS............ 923,000 923,000
Yazoo Basin, Whittington Aux Channel, MS 400,000 400,000
Yazoo Basin, Big Sunflower, MS.......... 139,000 2,139,000
Yazoo Basin, Yazoo Backwater, MS........ 440,000 926,000
Lower Red River, South Bank, LA......... 105,000 105,000
Bonnet Carre, LA........................ 2,310,000 3,100,000
Old River, LA........................... 7,350,000 29,900,000
Atchafalaya Basin, LA................... 13,000,000 25,000,000
Atchafalaya Basin Floodway, LA.......... 2,775,000 4,200,000
Baton Rouge Harbor Devil's Swamp, LA.... 14,000 300,000
Miss Delta Region, LA................... 588,000 588,000
Bayou Cocodrie & Tribs, LA.............. 65,000 65,000
Inspection of Completed Works........... 1,500,000 1,700,000
Mapping................................. 1,112,000 1,325,000
-------------------------------
Total MR&T Maintenance............ 151,855,000 248,105,000
------------------------------------------------------------------------
MISSISSIPPI VALLEY FLOOD CONTROL ASSOCIATION--FISCAL YEAR 2005 CIVIL
WORKS REQUESTED BUDGET--MISSISSIPPI RIVER AND TRIBUTARIES APPROPRIATIONS
------------------------------------------------------------------------
President's
Project and State Budget MVFCA Request
------------------------------------------------------------------------
Surveys, Continuation of Planning and
Engineering & Advance Engineering &
Design:
Memphis Harbor, TN.................. .............. ..............
Germantown, TN...................... $27,000 $27,000
Millington, TN...................... 100,000 100,000
Fletcher Creek, TN.................. 93,000 93,000
Memphis Metro Storm Water .............. 100,000
Management, TN.....................
Bayou Meto, AR...................... .............. 2,447,000
Germantown, TN...................... .............. 200,000
Southeast Arkansas.................. .............. 600,000
Coldwater Basin Below Arkabutla 203,000 750,000
Lake, MS...........................
Quiver River, MS.................... .............. 100,000
Spring Bayou, LA.................... 500,000 600,000
Point Coupee to St. Mary Parish, LA. .............. 100,000
Atchafalaya Basin Floodway System, 100,000 100,000
LA*................................
Alexandria, LA to the Gulf of Mexico 435,000 435,000
Morganza, LA to the Gulf of Mexico.. 1,500,000 10,000,000
Donaldsonville, LA to the Gulf of 800,000 1,200,000
Mexico.............................
Tensas River, LA.................... .............. 500,000
Donaldsonville Port Development, LA. .............. 100,000
Collection & Study of Basic Data.... 700,000 700,000
-------------------------------
Subtotal, Surveys, Continuation of 4,458,000 18,152,000
Planning & Engineering & Advance
Engineering & Design.............
===============================
Construction:
St. John's Bayou-New Madrid 8,300,000 8,300,000
Floodway, MO.......................
Eight Mile Creek, AR................ 1,357,000 3,293,000
Helena & Vicinity, AR............... .............. ..............
Grand Prairie Region, AR............ .............. 20,000,000
Bayou Meto, AR...................... .............. 18,000,000
West Tennessee Tributaries, TN...... .............. 700,000
Nonconnah Creek, TN................. 2,153,000 2,753,000
Wolf River, Memphis, TN............. .............. 2,400,000
August to Clarendon Levee, Lower .............. 2,000,000
White River, AR....................
St. Francis Basin, MO & AR.......... 3,000,000 9,500,000
Yazoo Basin, MS..................... 5,850,000 62,775,000
Atchafalaya Basin, LA............... 22,495,000 32,500,000
Atchafalaya Basin Floodway, LA...... 7,200,000 10,000,000
MS Delta Region, LA................. 1,800,000 4,700,000
Horn Lake Creek, MS................. .............. 203,000
MS & LA Estaurine Area, MS & LA..... .............. 50,000
Channel Improvements, IL, KY, MO, 36,882,000 44,082,000
AR, TN, MS & LA....................
Mississippi River Levees, IL, KY, 38,960,000 54,800,000
MO, AR, TN, MS & LA................
-------------------------------
Subtotal, Construction............ 127,997,000 276,056,000
Subtotal, Maintenance............. 151,855,000 248,105,000
-------------------------------
Subtotal, Mississippi River & 284,310,000 542,313,000
Tributaries......................
Less Reduction for Savings & -14,310,000 92,313,000
Slippage.........................
-------------------------------
Grand Total, Mississippi River & 270,000,000 450,000,000
Tributaries......................
------------------------------------------------------------------------
______
Prepared Statement of the Louisiana Department of Transportation and
Development
On behalf of the State of Louisiana and its twenty levee boards, we
present recommendations for fiscal year 2005 appropriations for U.S.
Army Corps of Engineers Civil Works Projects in Louisiana.
Louisiana contains the terminus of the Mississippi River, third
largest drainage basin in the world, draining 41 percent, or 1\1/4\
million square miles, of the contiguous United States and parts of two
Canadian provinces. When combined with the other interstate rivers
flowing through the State, almost 50 percent of the contiguous land
mass of this Nation drains through Louisiana. This same river drainage
system forms the backbone of the federally constructed Inland Waterway
System that provides our heartland cost effective access to the global
marketplace via the 230 mile deepwater channel of the lower Mississippi
River from Baton Rouge to the Gulf. This strategic gateway to
international markets is the largest port complex in the world ranking
Louisiana first in the Nation in volume of waterborne traffic. We are
distressed that the Administration's budget proposals in recent years
indicate a lack of concern for the preservation and efficient operation
of this system. The Inland Waterway System--the whole system--allowed
industrial facilities scattered throughout the central portion of the
Nation to obtain raw materials and fuel from distant locations and to
reach worldwide markets. These industries, and most of the agricultural
industries in mid-America, are heavily dependent on the federally
maintained navigable waterways to remain globally competitive in
transporting their products. To consider maintenance of only the main-
stem portion of the waterway system at the expense of the connector
branches will wreak havoc on the economies of all the communities
located on these so-called low-use branch waterways.
A comprehensive and extensive flood control system is required to
protect the landside facilities and related industries supporting that
waterborne commerce. In Louisiana there are almost 3,000 miles of
levees (1,500 in the MR&T system) constructed jointly by Federal, State
and local entities that provide protection from riverine and tidal
flooding. Louisiana's 20 levee boards are responsible for the
maintenance and upkeep of these levees which allow one-third of
Louisiana to be habitable year-round. The petrochemical, oil and gas
industries in Louisiana that contribute to the economic well being of
the Nation are almost totally dependent on the federally constructed
flood control system to protect their facilities. But these same levees
and channel improvements that benefit the entire Nation have been
blamed for the rapid deterioration of our coastal wetlands. The loss of
these wetlands is adversely impacting both the area's natural resources
and the effectiveness of our hurricane protection system. These
wetlands are not Louisiana's alone; they constitute 40 percent of the
Nation's wetlands and their restoration must be considered a national
priority.
The Mississippi River and Tributaries Project (MR&T) has been
underway since 1928 and isn't scheduled for completion until beyond
2031. The Administration's proposed budget of $270 Million for fiscal
year 2005 is totally unacceptable. We strongly support the Mississippi
Valley Flood Control Association's request for $450 Million for the
MR&T Project. We urge support of this requested level of funding.
In making the following funding recommendations for Louisiana
projects regarding specific construction, studies, and operation and
maintenance items, the State of Louisiana would hope that Congress and
the Administration will honor their prior commitments to infrastructure
development and continue to fund our requests. It is appropriate that
the Federal Government has committed to providing combined flood
control and navigation measures that benefit the economy of both
Louisiana and the rest of the Nation. We believe these types of water
resources projects are the most cost effective projects in the Federal
budget, having to meet stringent economic criteria not required by
other programs.
We wish to express our thanks to the Appropriations Subcommittees
on Energy and Water Development of the House and Senate for allowing us
to present this brief on the needs of Louisiana for fiscal year 2005.
We solicit your favorable consideration and request this statement be
included in the formal hearing record.
The State of Louisiana requests funding for the following projects
that differs from what is in the fiscal year 2005 Administration Budget
or is a project of particular importance for the State. Those items
that the State of Louisiana believes have been appropriately funded
have not been included.
FLOOD CONTROL, NAVIGATION, HURRICANE PROTECTION & WATER RESOURCES
PROJECTS SUMMARY OF RECOMMENDED APPROPRIATIONS FISCAL YEAR 2005 FOR
LOUSIANA
------------------------------------------------------------------------
Administrative Louisiana
Louisiana Budget Request
------------------------------------------------------------------------
GENERAL INVESTIGATIONS:
STUDIES:
Amite River-Ecosystem $250,000 $250,000
Restoration, LA................
Amite River & Tributaries, LA-- 100,000 1,000,000
Bayou Manchac..................
Atchafalaya River, Bayous Chene, 350,000 800,000
Boeuf & Black, LA..............
Calcasieu Lock, LA.............. 200,000 1,000,000
Calcasieu River Basin, LA....... 350,000 350,000
Calcasieu River Pass Ship 50,000 500,000
Channel Enlargement, LA........
Hurricane Protection, LA........ .............. 200,000
LCA--Ecosystem Restoration, LA.. 8,000,000 12,000,000
Mississippi River Gulf Outlet, 225,000 225,000
LA.............................
Plaquemines Parish, LA.......... 300,000 500,000
Port of Iberia, LA.............. 350,000 730,000
St. Bernard Parish Urban Flood 300,000 550,000
Control, LA....................
St. Charles Parish Urban Flood 300,000 800,000
Control, LA....................
St. John the Baptist Parish, LA. .............. 600,000
Southwest, AR (AR, LA).......... .............. 427,000
Bossier Parish Levee & FC....... .............. 385,000
Cross Lake Water Supply......... .............. 500,000
JBJWW........................... .............. 100,000
Pearl River, MS & LA............ .............. 100,000
Pearl River, Bogalusa (MS)...... .............. 100,000
PED:
Bayou Sorrel Lock, LA............... 550,000 550,000
Lafayette Parish, LA................ .............. 327,000
West Shore--Lake Pontchartrain, LA.. .............. 400,000
West Baton Rouge Parish, LA......... .............. 500,000
NEW STUDIES:
Bayou Nezpique Watershed, LA........ .............. 100,000
Millennium Port, LA................. .............. 100,000
Port Fourchon Enlargement, LA....... .............. 100,000
Port of West St. Mary............... .............. 100,000
Southwest La Multi-Purpose Water .............. 100,000
Resources, LA......................
Tangipahoa River Ecosystem .............. 100,000
Restoration, LA....................
CONSTRUCTION GENERAL:
Comite River, LA.................... 1,500,000 9,900,000
East Baton Rouge Parish, LA......... .............. 8,000,000
Grand Isle, LA...................... .............. 1,900,000
Inner Harbor Navigation Canal Lock, 10,000,000 24,000,000
LA (IWWTF & CG)....................
Lake Pontchartrain, LA.............. 3,937,000 22,500,000
Larose to Golden Meadow, LA......... 583,000 1,500,000
New Orleans to Venice, LA........... 2,965,000 6,600,000
Southeast, LA....................... 30,000,000 78,000,000
West Bank and Vicinity, New Orleans, 37,000,000 59,800,000
LA.................................
Red River Below Den Dam (AR, LA).... .............. 7,000,000
Red River Emergency (AR, LA)........ .............. 10,000,000
J Bennett Johnston Waterway, MS 4,000,000 20,000,000
River to Shreveport................
Ouachita River Levees............... .............. 3,800,000
OPERATIONS & MAINTENANCE GENERAL:
Atchafalaya River, Bayous Chene, 13,813,000 26,600,000
Boeuf & Black......................
Barataria Bay Waterway.............. .............. 4,600,000
Bayou Lacombe....................... .............. 860,000
Bayou Lafourche..................... .............. 1,100,000
Bayou Segnette...................... .............. 1,400,000
Bayou Teche......................... .............. 300,000
Calcasieu River & Pass.............. 13,285,000 21,800,000
(T) Chefuncte River................. .............. 800,000
Freshwater Bayou.................... 1,678,000 3,700,000
Grand Isle, LA & Vicinity........... .............. 800,000
Gulf Intracoastal Waterway.......... 17,476,000 27,300,000
Houma Navigation Canal.............. 3,070,000 3,300,000
Mermentau River..................... 4,410,000 6,500,000
Mississippi River, Baton Rouge to 59,125,000 74,400,000
the Gulf...........................
Mississippi River--Gulf Outlet...... 13,004,000 45,000,000
Mississippi River, Outlets at Venice 424,000 3,700,000
Tangipahoa River.................... .............. 800,000
Waterway Empire to the Gulf......... .............. 240,000
Waterway Intracoastal Waterway to .............. 200,000
Bayou Dulace.......................
Ouachita & Black Rivers (AR, LA).... 1,974,000 18,123,000
Bayou Bodcau........................ 776,000 776,000
Caddo Lake.......................... 182,000 182,000
Wallace Lake........................ 290,000 290,000
Bayou Pierre........................ 28,000 28,000
J Bennett Johnston Waterway......... 10,600,000 18,098,000
Lake Providence Harbor.............. 38,000 451,000
Madison Parish Port................. 20,000 120,000
------------------------------------------------------------------------
Note.--The projects listed above are only those in Louisiana (except
where noted) and directly affect the State.
MISSISSIPPI RIVER AND TRIBUTARIES SUMMARY OF RECOMMENDED APPROPRIATIONS
FISCAL YEAR 2005 FOR LOUISIANA
------------------------------------------------------------------------
Administrative Louisiana
Louisiana Budget Request
------------------------------------------------------------------------
FC, MR&T GENERAL INVESTIGATIONS:
Alexandria to the Gulf.............. $435,000 $435,000
Donaldsonville to the Gulf.......... 800,000 1,200,000
Morganza to the Gulf, PED........... 1,500,000 10,000,000
Collection & Study Data............. 200,000 200,000
Collect & Study of Basic Data (AR, 300,000 300,000
LA, MS)............................
Spring Bayou Area, LA............... 500,000 600,000
Tensas River Basin, LA.............. 0 500,000
NEW STUDIES: Atchafalaya Basin Floodway 0 100,000
System Land Study, LA..................
FC, MR&T CONSTRUCTION:
Atchafalaya Basin................... 22,495,000 32,500,000
Atchafalaya Basin Floodway System... 7,200,000 10,000,000
Channel Improvement................. 10,105,000 10,105,000
Mississippi Delta Region (FED)...... 1,800,000 4,700,000
Mississippi River Levees, LA........ 2,680,000 2,680,000
MS--LA Estuarine Area............... 0 50,000
Mississippi River Levees (AR, LA, 20,850,000 30,850,000
MS)................................
Channel Improvement (AR, LA, MS).... 13,582,000 16,782,000
FC, MR&T MAINTENANCE:
Atchafalaya Basin................... 13,000,000 25,000,000
Atchafalaya Basin Floodway System... 2,775,000 4,200,000
Baton Rouge Harbor (Devil's Swamp).. 14,000 300,000
Bayou Cocodrie and Tributaries...... 65,000 65,000
Bonnet Carre Spillway............... 2,310,000 3,100,000
Channel Improvement................. 15,675,000 15,675,000
Dredging............................ 700,000 700,000
Inspection of Completed Works....... 383,000 383,000
Mapping............................. 396,000 396,000
MS Delta Region..................... 588,000 588,000
Mississippi River Levees, LA........ 790,000 5,200,000
Old River........................... 7,350,000 29,900,000
Mississippi River Levees (AR, LA, 2,670,000 3,270,000
MS)................................
Revetments & Dikes (AR, LA, MS)..... 13,400,000 13,400,000
Dredging (AR, LA, MS)............... 6,265,000 6,265,000
Mapping (AR, LA, MS)................ 329,000 329,000
Inspection of Completed Works (AR, 338,000 338,000
LA, MS)............................
Boeuf & Tensas Rivers............... 2,160,000 2,160,000
Red River Backwater................. 3,083,000 7,390,000
Lower Red River..................... 105,000 105,000
------------------------------------------------------------------------
Note.--The projects listed above are only those in Louisiana (except
when noted) and directly affect the State. We realize that there are
other projects in the Valley. We endorse the recommendations of the
Mississippi Valley Flood Control Association.
______
Prepared Statement of the Association of State Dam Safety Officials
Chairman Domenici and members of the subcommittee, the Association
of State Dam Safety Officials is pleased to offer this testimony on the
President's proposed budget for the U.S. Army Corps of Engineers
(USACOE) fiscal year 2005. The Association's testimony includes issues
related to the safety and security of the dams owned or operated by the
USACOE and in support of the National Inventory of Dams (NID)
authorized by the Dam Safety and Security Act of 2002.
The Association of State Dam Safety Officials is a national non-
profit organization of more than 2000 State, Federal and local dam
safety professionals and private sector individuals dedicated to
improving dam safety through research, education and communications.
Our goal simply is to save lives, prevent damage to property and to
maintain the benefits of dams by preventing dam failures. Several
dramatic dam failures in the United States called attention to the
catastrophic consequences of failures. The failure of the federally-
owned Teton Dam in 1976 caused 14 deaths and over $1 billion in
damages, and is a constant reminder of the potential consequences
associated with dams and the obligations to assure that dams are
properly constructed, operated and maintained.
NATIONAL INVENTORY OF DAMS
The National Inventory of Dams is a computer database, maintained
by the USACOE, that houses vital information of Federal and non-Federal
dams across the United States. The database tracks information about
the dam's location, size, use, type, proximity to nearest town, hazard
classification, age, height and many other technical data fields. The
database can be used for States or Federal agencies to access
comprehensive information for planning, security alerts or to use
within a Graphic Information System (GIS) vital in tracking lifeline
systems and responding to emergency events through using the geographic
and mapping abilities along with the engineering information within the
NID database.
The NID can be used by policy makers as a tool when evaluating
national or local dam safety issues. For example, it is extremely
useful in establishing the average age of the dams in the United
States, or identifying the number and location of a particular type of
dam construction (i.e. the number and location of ``thin arch'' dams
greater than 100 feet in height). In addition, the Federal Emergency
Agency uses this data to compute State grant assistance funds, in
accordance with the National Dam Safety Program and to assess the
status of Federal and non-Federal dams.
There are over 78,000 dams on the National Inventory of Dams in the
country. It is essential that this data be current and accurate in
order to have access to this critical data when needed and to be able
to track trends in assessing dam safety improvements. The NID can meet
this need, but it is only as accurate as the last update. The NID has
not been updated since 2000. The database must be continually updated
as the dam information is constantly changing (i.e. new ownership,
major repairs, removal of dams, increasing the height and storage,
additional downstream development or changes to the dam's hazard
classification). This data is now even more important as the
intelligence community and Federal law enforcement agencies have
identified dams as a specific target of potential terrorists attacks.
The data can also be of tremendous benefit to Federal agencies such as
FEMA, NWS, USGS and the new Department of Homeland Security for
locating large dams, for watershed planning, flood control planning or
emergency response to failures or extreme storm events.
Correct and timely data is vital to the national effort to assess
and protect our critical infrastructure, including dams, from
intentional acts of terrorists. The Homeland Security Presidential
Directive No. 7 requires the Federal Government to ``protect critical
infrastructure and key resources'' and includes a ``strategy to
identify, prioritize and coordinate the protection of critical
infrastructure.'' This cannot be accomplished without an accurate NID.
Continuing updates and improvements to this database resource
should be a higher priority. Federal agencies that own dams as well as
State dam safety programs provide updated information and corrections
to the data fields, which provides for accurate and current data. The
NID is also an integral part of the biennial report to Congress which
evaluates the performance of the National Dam Safety Program and status
of the safety of the Nation's dams.
The Association respectfully requests that the subcommittee
recognize the importance of this national dam database and increase the
appropriation amount from the proposed funding level in the President's
budget of $222,000 to the full authorized funding amount of $500,000.
DAM SAFETY, SECURITY, AND OPERATION AND MAINTENANCE
The USACOE is recognized as a national leader in dam construction
and dam safety. The USACOE currently owns or operates 700 dams in the
United States, and these dams, like other critical components of the
national infrastructure are aging and the require vigilant inspection
as well as routine maintenance. In addition, the security of our
Nation's infrastructure is a major concern. Dams, especially the large
federally-owned dams are a potential target for terrorists attacks.
The USACOE dams are typically very large, provide flood protection,
water supply, hydropower, recreation and many are critical to the
waterway navigation on the Nation's major rivers. The consequences of a
failure or misoperation of one of these dams can cause enormous loss of
life and property damage, as well as the loss of the benefits provided
by the dam. Therefore, the Association strongly supports appropriations
necessary to make needed repairs, to conduct security assessments and
improvements wherever necessary. The Association believes that
operation and maintenance are critical to the continued safe
performance of the dams. Too often deferred maintenance causes a small
problem to become larger and more costly; and if left unattended, may
cause the dam to become more susceptible to failure.
The Association applauds the administration's recognition of the
importance and value of the USACOE's Dam Safety Program and the need to
fund dam maintenance of USACOE dams. ASDSO respectfully asks that the
subcommittee recognize that inspections, safety repairs, security and
routine maintenance are all essential to assure the safety and the
continuing benefits of USACOE dams.
The Association specifically requests that the subcommittee:
--Support the administration's increase in appropriations for the
USACOE Dam Safety Program non-project management funds at
$250,000;
--Increase in appropriations for the USACOE Dam Security Program non-
project management funds to $100,000 from the proposed $30,000
to include assistance to the State dam safety programs in
conducting security vulnerability assessments and for training
in the dam security assessment tools such as RAM-D;
--Restore the USACOE ``Planning Assistance to States Program'' to the
$6,500,000 of fiscal year 2004 from the proposed $4,650,000 to
provide much needed assistance to the States to cost-share
dambreak modeling, flood studies, developing emergency
evacuation plans and to jointly conduct security vulnerability
assessments; and
--Support the administration's fiscal year 2005 budget for
$35,000,000 for emergency maintenance/repairs.
Finally, while the security of the USACOE dams is currently a major
priority, the continued safety, repair and maintenance of the USCOE
dams should also continue as a major appropriations priority and not be
diminished. Improved security on an unsafe dam may deter an attack, but
it still leaves the lives and property downstream at an unnecessary
risk.
Mr. Chairman and members of the subcommittee, thank you for this
opportunity to provide this testimony in support of safe dams. We look
forward to working with the subcommittee and staff on this important
national issue.
______
Prepared Statement of the Arkansas River Basin Interstate Committee
Mr. Chairman and members of this distinguished committee, my name
is Lew Meibergen. I am Chairman of the Board of Johnston Enterprises
headquartered in Enid, Oklahoma. It is my honor to serve as Chairman of
the Arkansas River Basin Interstate Committee, members of which are
appointed by the governors of the great States of Arkansas, Colorado,
Kansas, Missouri, and Oklahoma.
In these times of war on terrorism, homeland defense and needed
economic recovery, our thanks go to each of you, your staff members and
the Congress. Your efforts to protect our Nation's infrastructure and
stimulate economic growth in a time of budget constraints are both
needed and appreciated.
Our Nation's growing dependence on others for energy, and the need
to protect and improve our environment, make your efforts especially
important. Greater use and development of one of our Nation's most
important transportation modes--our navigable inland waterways--will
help remedy these problems. At the same time, these fuel-efficient and
cost-effective waterways keep us competitive in international markets.
In this regard, we must maintain our inland waterway transportation
system. We ask that the Congress restore adequate funding to the Corps
of Engineers budget--$5.5 billion in fiscal year 2005--to keep the
Nation's navigation system from further deterioration. If this
catastrophic problem is not addressed immediately, we are in real
danger of losing the use of this most important transportation mode.
As Chairman of the Interstate Committee, I present this summary
testimony as a compilation of the most important projects from each of
the member States. Each of the States unanimously supports these
projects without reservation. I request that the copies of each State's
individual statement be made a part of the record, along with this
testimony.
Backlog of Channel Structure Maintenance McClellan-Kerr Arkansas River
Navigation System
A $10 million Congressional add to the fiscal year 2005 Operation
and Maintenance budget is urgently needed for critical repairs to
damaged and deteriorated dikes and revetments to maintain channel
alignment and provide original channel configuration while reducing the
need for dredging.
Equus Beds Aquifer--Kansas
Equus Beds Aquifer Storage and Recovery Project.--Continuation of a
City of Wichita, Groundwater Management District No. 2 and State of
Kansas project to construct storage and recovery facilities for a major
groundwater resource supplying water to more than 20 percent of Kansas
municipal, industrial and irrigation users. The project will capture
and recharge in excess of 100 million gallons per day and will also
reduce on-going degradation of the existing groundwater by minimizing
migration of saline water. Federal authorization of the project and
continued Federal funding is requested in the minimum amount of $1.5
million for fiscal year 2005.
Arkansas River System Operations Feasibility Study, Arkansas and
Oklahoma
This study will evaluate how to optimize the reservoirs in Oklahoma
and Arkansas that provide flows into the river with a view toward
improving the number of days per year that the navigation system will
accommodate tows. It will also investigate the impacts of deepening and
widening the navigation channel. We request funding in the amount of
$1.253 million to complete the study in fiscal year 2005. This is
$735,000 above the President's budget request of $500,000.
The testimony we present reveals our firm belief that our inland
waterways and the Corps of Engineers' efforts are especially important
to our Nation in this time of trial. Transportation infrastructure like
the inland waterways, need to be operated and maintained for the
benefit of the populace. Without adequate annual budgets, this is
impossible.
Mr. Chairman, members of this committee, we respectfully request
that you and members of your staff review and respond in a positive way
to the attached individual statements from each of our States which set
forth specific requests pertaining to those States.
We sincerely appreciate your consideration and assistance.
ARKANSAS
prepared statement of paul latture, ii, chairman for arkansas
Mr. Chairman and members of the committee, thank you for the
opportunity to present testimony to this most important committee. I
serve as Executive Director for the Little Rock Port Authority and as
Arkansas Chairman for the Interstate Committee. Other committee members
representing Arkansas, in whose behalf this statement is made, are
Messrs. Wally Gieringer of Hot Springs Village, retired Executive
Director of the Pine Bluff-Jefferson County Port Authority; Scott
McGeorge, President, Pine Bluff Sand and Gravel Company, Pine Bluff;
Barry McKuin of Morrilton, President of the Conway County Economic
Development Corporation; and N.M. ``Buck'' Shell, CEO, Five Rivers
Distribution in Van Buren and Fort Smith, Arkansas.
We call to your attention three projects on the McClellan-Kerr
Arkansas River Navigation System (the ``System'') that are especially
important to navigation and the economy of this multi-State area:
Backlog of Channel Structure Maintenance, Maintenance Dredging, and
Ark-White Cutoff as related to the Arkansas River.
Backlog of Channel Structure Maintenance
--A $10 million Congressional Add to the fiscal year 2005 Operation
and Maintenance Budget is urgently needed for critical repairs
to damaged and deteriorated dikes and revetments to maintain
channel alignment and provide original channel configuration
while reducing the need for dredging.
--More than a decade of neglect to our navigation structures while
funding the construction of Montgomery Point Lock & Dam has
created a critical backlog of channel structure work that
threatens the viability of the McClellan-Kerr Arkansas River
Navigation System.
--Current grain prices offer a rare potential for our farming mid-
section of the Nation yet a failure to deliver these
commodities to market due to neglect of our transportation
system would have serious economic impacts rippling through the
entire Arkansas River Basin.
Maintenance Dredging
--A $3 million Congressional Add is needed for Maintenance Dredging
in known problem areas with siltation capable of restricting or
closing the navigation channel.
--A closure of the System for even a short period would create
transportation problems with devastating economic impacts on
Arkansas and our Nation at a time when commodity shipments are
at record levels.
--These funds will help ensure the System remains open and allow
users to maximize tonnage by preventing the need for light
loading.
Ark-White Cutoff
--A cutoff is developing between the Arkansas and White Rivers which,
if not corrected, could have dramatic adverse effects on the
navigation system as well as significant bottomland hardwoods
and pristine environment that provides unique wildlife habitat
in southeast Arkansas.
--Unless corrected, it is inevitable that a major cutoff will occur
negatively impacting navigation on the river, significantly
increasing siltation and dredging requirements and, at worst,
cutting off the lower end of the Navigation System from the
Mississippi River.
--Therefore, a $2 million Congressional Add is needed to further the
study of this area and lead to a solution, which will prevent
erosion, cutoffs, and detrimental siltation.
In addition to these three vital requests, we urge you to continue
to support funding for the Construction, and Operation and Maintenance
of the McClellan-Kerr Arkansas River Navigation System which provides
low-cost and dependable transportation for farm products, construction
aggregates, raw materials and finished products important to our
Nation's economic recovery.
It is also most important that you continue construction authority
of the McClellan-Kerr Project until remaining channel stabilization
problems identified by the Little Rock District Corps of Engineers have
been resolved. The Corps needs to develop a permanent solution to the
threat of cutoffs developing in the lower reaches of the navigation
system and to use environmentally sustainable methods under the
existing construction authority.
Mr. Chairman, we appreciate the work of this essential committee
and thank you for your efforts that contribute so much to the social
and economic well-being of the United States of America.
We fully endorse the statement presented to you today by the
Chairman of the Arkansas River Basin Interstate Committee and urge you
to favorably consider these requests that are so important to the
economic recovery of our region and Nation.
COLORADO
PREPARED STATEMENT OF JAMES BRODERICK, CHAIRMAN FOR COLORADO
Mr. Chairman and members of the committee, we greatly appreciate
the opportunity to present testimony before this committee. My name is
James Broderick, I am the Executive Director of the Southeastern
Colorado Water Conservancy District and serve as Colorado Chairman for
the Interstate Committee.
The critical water resource projects in the Colorado portion of the
Arkansas River Basin are summarized below. The projects are
environmental and conservation oriented and have regional and multi-
State impact. We are grateful for your leadership and your past
commitment to our area.
This request is for two projects $554,000 to provide for:
--Design, installation, and operation of weighing lysimeters at the
Colorado State University Agricultural Experiment Station at
Rocky Ford, Colorado ($422,000).--Install and operate a set of
three monolithic continuous weighing (direct load cell)
lysimeters to accurately measure evapotranspiration of a
reference crop and of production crops under a variety of field
conditions typical of the lower Arkansas River Valley in
Colorado.
--Enhancement of the CoAgMet Electronic Weather Station Network in
the Lower Arkansas River Basin ($132,000).--Enhance and improve
the existing and new Colorado Agriculture Meteorological
(CoAgMet) weather in the Lower Arkansas River Basin and provide
for its adequate operation and maintenance in order to provide
accurate data for predicting evapotranspiration using the
Penman-Monteith method.
In recent litigation the Penman Monteith method has been recognized
as the preferred procedure for calculating crop water use, replacing
the Blaney-Criddle method historically used in Colorado. The importance
of this change is that the Penman Monteith method, requires more data
and information than Blaney-Criddle in order to be used properly. The
Penman-Monteith method will increasingly be used to calculate crop
consumptive use to determine the transferable consumptive use for
changes of agricultural water rights to municipal use in the Arkansas
River Basin and elsewhere in the State.
We fully endorse the statement presented to you today by the
Chairman of the Arkansas River Basin Interstate Committee. We
appreciate the opportunity to provide testimony to your most important
subcommittee and urge you to favorably consider our request for needed
infrastructure investments in the natural and transportation resources
of our Nation.
KANSAS
PREPARED STATEMENT OF GERALD H. HOLMAN, CHAIRMAN FOR KANSAS
Mr. Chairman and members of the committee, I am Gerald H. Holman,
Senior Vice President of the Wichita Area Chamber of Commerce, Wichita,
Kansas and Chairman of the Kansas Interstate Committee for the Arkansas
Basin Development Association (ABDA). I also serve as Chairman of ABDA.
The Kansas ABDA representatives join with our colleagues from the
other Arkansas River Basin States to form the multi-State Arkansas
Basin Development Association. We fully endorse the summary statement
presented to you by the Chairman of the Arkansas River Basin Interstate
Committee.
We are pleased to report that the Montgomery Point Lock and Dam
Project will be operational by July 2004 and that a formal dedication
ceremony is scheduled for July 16, 2004. Completion of this critical
project through your support will maintain viable navigation for
commerce on the McClellan-Kerr Navigation System. This inland waterway
is vital to the economic health of our multi-State area. The Federal
Government invested $1.3 billion in the project. Other public and
private investment totals in excess of $4.2 billion and over 50,000
jobs have been created. Increasing the depth of the navigation channel
to 12 feet will increase the performance of the navigation system by
allowing shippers to move one-third more cargo per barge. We request
funding in the amount of $1.235 million to complete Phase II of the
Arkansas River System Operations Feasibility Study which will examine
the feasibility of increasing the channel depth.
The critical water resources projects in the Kansas portion of the
Arkansas River Basin are identified below. The projects are safety,
environmental and conservation oriented and all have regional and/or
multi-State impact. We are grateful for your past commitment to
critical needs in Kansas.
We ask for your continued support for this important Bureau of
Reclamation project on behalf of the Wichita/South Central Kansas area:
Equus Beds Aquifer Storage and Recovery Project.--This is the
continuation of a Bureau of Reclamation project jointly endorsed by the
City of Wichita, Groundwater Management District No. 2 and the State of
Kansas. This model technology has proven the feasibility of recharging
a major groundwater aquifer supplying water to nearly 600,000
irrigation, municipal and industrial users. The demonstration project
has successfully recharged more than one billion gallons of water from
the Little Arkansas River. The project is essential to help protect the
aquifer from on-going degradation caused by the migration of saline
water.
The State of Kansas supports this much-needed project in order to
secure the quality of life and economic future for more than 20 percent
of the State's population. The project is included within the Kansas
Water Plan. All interested parties fully support the project as the
needed cornerstone for the area agricultural economy and for the
economy of the Wichita metropolitan area.
The demonstration project has confirmed earlier engineering models
that the full scale aquifer storage and recovery project is feasible
and capable of meeting the increasing water resource needs of the area
to the mid-21st century. Presently, the Equus Beds provide
approximately half of the Wichita regional municipal water supply. The
Equus Beds are also vital to the surrounding agricultural economy.
Environmental protection of the aquifer, which this strategic project
provides, has increasing importance to ensure quality water for the
future since south central Kansas will rely to an even greater extent
on the Equus Beds aquifer for water resources.
The aquifer storage and recovery project is a vital component of
Wichita's comprehensive and integrated water supply strategy. The full
scale design concept for the aquifer storage and recovery project calls
for a multi-year construction program. Phase One is estimated to cost
$17.1 million. The total project involving the capture and recharge of
more than 100 million gallons of water per day is estimated to cost
$110 million over 10 years. This is substantially less costly, both
environmentally and economically, when compared with reservoir
construction or other alternatives.
We are grateful for your previous cost share funding during the
demonstration phase, as a compliment to funds provided by the City of
Wichita. As we enter the construction phase, we request continued
Congressional support:
--by authorizing as a Federal project, the Aquifer Storage and
Recovery Project and directing the Bureau of Reclamation to
participate in its final design and construction to completion;
and
--through continued cost share funding of the full-scale Aquifer
Storage and Recovery Project in the minimum amount of
$1,500,000 for fiscal year 2005.
Many of our agricultural communities have historically experienced
major flood disasters, some of which have resulted in multi-State
hardships involving portions of the State of Oklahoma. The flood of
1998 emphasized again the need to rapidly move needed projects to
completion. Major losses also took place in the Wichita metropolitan
area. Projects in addition to local protection are also important. Our
small communities lack the necessary funds and engineering expertise
and Federal assistance is needed. This committee has given its previous
support to Corps of Engineers projects in Kansas and we request your
continued support for the following:
--Arkansas City, Kansas Flood Protection.--Unfortunately, this
project was not completed prior to the flood of 1998. The flood
demonstrated again the critical need to protect the
environment, homes and businesses from catastrophic damages
from either Walnut River or Arkansas River flooding. When the
project is complete, damage in a multi-county area will be
eliminated and benefits to the State of Oklahoma just a few
miles south will also result. The Secretary of the Army was
authorized to construct the project in fiscal year 1997. The
project is slated for completion in fiscal year 2005 but the
funding is not adequate in the President's budget. We request
your continued support in the amount of $3.619 million, which
is $2.619 million above the President's budget request so the
Corps of Engineers can complete this project.
--Walnut River Basin, Kansas Feasibility Study.--This basin including
the Whitewater and Little Walnut Rivers is located in south
central Kansas. The feasibility study will identify ecosystem
resources, evaluate the system qualities, determine past losses
and current needs, and evaluate potential restoration and
preservation measures. The non-Federal sponsor is the Kansas
Water Office who believes that environmental restoration is a
primary need in the basin. Environmental restoration features
may also stabilize and protect streambanks from erosion and
improve the water quality in the basin. The need for fiscal
year 2005 is $305,000 which is $86,000 more than the
President's budget request.
--Silver-Grouse Creek Reconnaissance Study.--The Silver-Grouse Creek
area in south central Kansas is a location of natural geologic,
archaeological and biologic attributes of the watershed.
Periodic flooding downstream of the reconnaissance area impacts
neighboring Oklahoma. Smaller Kansas communities without
technical, financial and managerial capacities are all
investigating future sources of water supply which potentially
could be satisfied through impoundment of water. A
reconnaissance study will identify water resource, flooding and
ecosystem restoration issues and will also establish whether
there is Federal interest in feasibility level studies. The
Cowley County Commission has requested a feasibility study be
conducted by the Corps. The Lt. Governor of Kansas has
requested an evaluation through the State Water Planning
Process and the Kansas Water Authority has supported this
request. Funding is requested in the amount of $100,000 for
fiscal year 2005.
--Grand Lake Feasibility Study.--A need exists to complete evaluation
of water resource problems in the Grand-Neosho River basin in
Kansas and Oklahoma to evaluate solutions to upstream flooding
problems associated with the adequacy of existing real estate
easements necessary for flood control operations of Grand Lake,
Oklahoma. A study authorized by the Water Resources Development
Act of 1996 was completed in September of 1998 and determined
that if the project were constructed based on current criteria,
additional easements would be required. Section 449 of WRDA
2000 directed the Secretary to evaluate backwater effects
specifically due to flood control operations on land around
Grand Lake. That study indicated that Federal actions have been
a significant cause of the backwater effects and according to
WRDA 2000, the feasibility study should be 100 percent
federally funded. A Feasibility study is necessary to determine
the most cost-effective solution to the real estate
inadequacies. Changes in the operations of the project or other
upstream changes could have a significant impact on flood
control, hydropower, and navigation operations in the Grand
(Neosho) River system and on the Arkansas River basin system,
as well. We request funding in the amount of $450,000 in fiscal
year 2005 to fully fund Feasibility studies evaluating
solutions to upstream flooding associated with existing
easements necessary for flood control operations of Grand Lake.
Although this has been a Congressional add for the past 2
years, no money was made available in the fiscal year 2005
President's budget request.
--Grand (Neosho) Basin Reconnaissance Study.--A need exists for a
basin-wide water resource planning effort in the Grand-Neosho
River basin, apart from the issues associated with Grand Lake,
Oklahoma. A federal interest has been determined from the
reconnaissance study as a result from a Congressional add in
fiscal year 2003 and another add appropriated in fiscal year
2004. Additional funds are needed to continue the feasibility
stage of the project. The study would focus on the evaluation
of institutional measures needed to improve the quality of the
aquatic and terrestrial habitat in the basin and to assist
communities, landowners, and other interests in southeastern
Kansas and northeastern Oklahoma in the development of non-
structural measures to reduce flood damages. We request funding
in the amount of $225,000 in fiscal year 2005.
--Continuing Authorities Programs.--We support funding of needed
programs including the Small Flood Control Projects Program
(Section 205 of the 1948 Flood Control Act, as amended),
Aquatic Ecosystem Restoration (Section 206 of the 1996 Water
Resources Development Act, as amended), Ecosystem Restoration
(Section 1135 of the 1986 Water Resources Development Act, as
amended) as well as the Emergency Streambank Stabilization
Program (Section 14 of the 1946 Flood Control Act, as amended).
Smaller communities in Kansas (Iola, Liberal, McPherson,
Augusta, Parsons, Altoona, Kinsley, Newton, Arkansas City,
Coffeyville and Medicine Lodge) have previously requested
assistance from the Corps of Engineers under the Section 205
and Section 14 programs. The City of Wichita is also requesting
funding through these programs to address flooding problems. We
urge you to support an increase of these programs to a $65
million programmatic limit for the Small Flood Control Projects
Program, $35 million for Aquatic Ecosystem Restoration, $35
million for the Ecosystem Restoration Program and $25 million
for the Emergency Streambank Stabilization Program.
The Ecosystem Restoration Programs are relatively new programs
which offer the Corps of Engineers a unique opportunity to work
to restore valuable habitat, wetlands, and other important
environmental features which previously could not be
considered. Preliminary Restoration Plan studies are underway
at Newton, Garden City and Neosho County.
The Planning Assistance to States Program under section 22 of the
Water Resources Development Act of 1974, as amended, provides
federal funding to assist the States in water resource
planning. The State of Kansas is grateful for previous funding
under this program which has assisted small Kansas communities
in cost sharing needed resource planning as called for and
approved in the Kansas State Water Plan. We request continued
funding of this program at the $10 million programmatic limit
which will allow the State of Kansas to receive the $500,000
limit.
Finally, we are very grateful that both the Corps of Engineers and
Bureau of Reclamation have the expertise needed for the development and
protection of water resources infrastructure. It is essential to have
the integrity and continuity these agencies provide on major public
projects. Your continued support of these vital agencies, including
funding, will be appreciated. Our infrastructure must be maintained and
where needed, enhanced for the future.
Mr. Chairman and members of these committees, we thank you for the
dedicated manner in which you have dealt with the Water Resources
Programs and for allowing us to present our funding requests.
Thank you very much.
OKLAHOMA
PREPARED STATEMENT OF JAMES M. HEWGLEY, JR., CHAIRMAN FOR OKLAHOMA
Mr. Chairman and members of the committee, I am James M. Hewgley,
Jr., Oklahoma Chairman of the Arkansas River Basin Interstate
Committee, from Tulsa, Oklahoma.
It is my privilege to present this statement on behalf of the
Oklahoma Members of our committee in support of adequate funding for
water resource development projects in our area of the Arkansas River
Basin. Other members of the committee are: Mr. Ted Coombes, Tulsa; Mr.
A. Earnest Gilder, Muskogee; Mr. Terry McDonald, Tulsa; and Mr. Lew
Meibergen, Enid, who also serves as Chairman of the combined Arkansas
River Basin Interstate Committee.
Together with representatives of the other Arkansas River Basin
States, we fully endorse the statement presented to you by the Chairman
of the Arkansas River Basin Interstate Committee. We appreciate the
opportunity to present our views of the special needs of our States
concerning several studies and projects.
Montgomery Point Lock and Dam--Montgomery Point, Arkansas.--We have
come to you with requests for funding for this much-needed project for
many years now. We are pleased to tell you this year we will not ask
for additional funds for this project as it is due to be operational by
July. We will have a formal dedication on July 16, 2004 at the site. We
are very grateful for your help and support to see this project through
to its completion.
There may well be some funds needed for final cleanup and
additional maintenance and operational equipment. In that event the
Corps of Engineers should be able to schedule those funds from their
regular appropriations.
Mr. Chairman, it is my pleasure to point out to this distinguished
committee that this navigation system has brought low cost water
transportation to Oklahoma, Arkansas and the surrounding States. There
has been over $5.5 billion invested in the construction and development
of the McClellan-Kerr Arkansas River Navigation system by the Federal
Government ($1.3 billion) and the public and private ($4.2 billion+)
sector, resulting in the creation of over 50,000 jobs in this partnered
project.
Maintenance of the navigation system.--We request additional
funding in the amount of $2 million, over and above normal funding, for
deferred channel maintenance. These funds would be used for such things
as repair of bank stabilization work, needed advance maintenance
dredging, and other repairs needed on the system's components that have
deteriorated over the past three decades.
In addition to the system-wide needed maintenance items mentioned
above, the budget for the Corps of Engineers for the past several years
has been insufficient to allow proper maintenance of the McClellan-Kerr
Arkansas River Navigation System--Oklahoma portion. As a result, the
backlog of maintenance items has continued to increase. If these
important maintenance issues are not addressed soon, the reliability of
the system will be jeopardized. The portion of the system in Oklahoma
alone is responsible for returning $2.6 billion in annual benefits to
the regional economy. We therefore request that $3.8 million be added
to the budget to accomplish the critical infrastructure maintenance
items following: Repair weir at L&D 14; repair tainter gates at L&D 17;
upgrade gate motor controls at L&D 14; dewater, inspect, repair Locks
14, 15, & 16; repair tainter gates at L&D 18; L&D 14-18--remote control
tainter gates; R.S. Kerr--repair miter gates; R.S. Kerr--repair Lock 15
support cell; replace pole lighting--Locks 14-18; replace tainter gate
limit switches--R.S. Kerr. These are the very worst of the needed
repairs of the many awaiting proper preventive maintenance and repair.
Tow Haulage Equipment--Oklahoma.--We also request funding of $2.5
million to initiate the installation of tow haulage equipment on the
locks located along the Arkansas River Portion of the McClellan-Kerr
Arkansas River Navigation System. Total cost for these three locks is
$4.7 million. This project will involve installation of tow haulage
equipment on W.D. Mayo Lock and Dam No. 14, Robert S. Kerr Lock and Dam
No. 15, and Webbers Falls Lock and Dam No. 16, on the Oklahoma portion
of the waterway. The tow haulage equipment is needed to make
transportation of barges more efficient and economical by allowing less
time for tows to pass through the various locks.
Arkansas River System Operations Feasibility Study, Arkansas and
Oklahoma.--We are especially pleased that the budget includes funds to
continue the Arkansas River Navigation Study, a feasibility study which
is examining opportunities to optimize the Arkansas River system. The
system of multipurpose lakes in Arkansas and Oklahoma on the Arkansas
River and its tributaries supports the McClellan-Kerr Arkansas River
Navigation System, which was opened for navigation to the Port of
Catoosa near Tulsa, Oklahoma, in 1970. The navigation system consists
of 445 miles of waterway that passes through the States of Oklahoma and
Arkansas. This study would optimize the reservoirs in Oklahoma and
Arkansas that provide flows into the river, with a view toward
improving the number of days per year that the navigation system would
accommodate tows. Phase II of this study will also examine the
feasibility of increasing the depth of the navigation channel to 12.
This will allow the shippers to move one-third more cargo per barge
drafting 11\1/2\ at near the current rate for 8\1/2\ draft barges.
This study could have significant impact on the economic development
opportunities in the States of Oklahoma, Arkansas and the surrounding
States. Due to the critical need for this study, we request funding of
$1.235 million, which is greater than shown in the budget, to complete
feasibility studies in fiscal year 2005.
The Power Plant at Webbers Falls Lock and Dam on the Arkansas River
has suffered from greatly reduced reliability due to turbine design
problems. Because this is a run-of-the-river facility with no storage,
energy spilled due to off-line units is energy that is lost forever. A
feasibility study recommending major rehabilitation of this unit has
been approved by the office of the Chief of Engineers.
Similar problems have been experienced at Ozark-Jeta Taylor Lock
and Dam on the Arkansas River in Arkansas. Congress approved a new
start and funding to begin the major rehabilitation of the Ozark
powerhouse in fiscal year 2003. The administration's fiscal year 2005
budget request includes $5 million in Construction General funding to
continue this major rehabilitation.
The turbines at the Ozark project are identical to the slant-shaft
turbines employed at Webbers Falls. The major rehabilitation plans for
both projects call for bidders to submit plans for new turbine designs,
with the two best bidders selected to proceed to model testing of their
designs before choosing the best and winning bid. By combining the
design selection for both projects into a single bid selection process
the Corps estimated that millions of dollars could be saved. To achieve
these savings, Congress would have to approve a new construction start
and initial funding for the major rehabilitation of the Webbers Falls
powerhouse. We respectfully urge the committee to approve the new start
and provide $4 million in initial Construction, General funding for the
appropriations bill. Please know that every dollar appropriated to this
project, plus interest, will be repaid to the U.S. Treasury through the
rates charged for the sale of this hydroelectricity.
Miami, Oklahoma and Vicinity Feasibility Study.--We request funding
of $750,000 to move into the feasibility stage for the vicinity in
Ottawa County including and surrounding Miami, Oklahoma in the Grand
(Neosho) Basin. Water resource planning-related concerns include
chronic flooding, ecosystem impairment, poor water quality, subsidence,
chat piles, mine shafts, health effects, and Native American issues.
The State of Oklahoma's desire is to address the watershed issues in a
holistic fashion and restore the watershed to acceptable levels. Study
alternatives could include structural and non-structural flood damage
measures, creation of riverine corridors for habitat and flood storage,
development of wetlands to improve aquatic habitat and other measures
to enhance the quality and availability of habitat and reduce flood
damages.
Oologah Lake Watershed Feasibility Study.--We request funding of
$326,000 which is $129,000 more than the President's budget request for
ongoing feasibility studies at Oologah Lake and in the upstream
watershed. The lake is an important water supply source for the City of
Tulsa and protection of the lake and maintaining and enhancing the
quality of the water is important for the economic development of the
City. Recent concerns have been expressed by the City of Tulsa and
others regarding potential water quality issues that impact water
users, as well as important aquatic and terrestrial habitat. Concerns
are related to sediment loading and turbidity, oilfield-related
contaminants and nutrient loading.
Illinois River Watershed Reconnaissance Study.--We request funding
in the amount of $100,000 to conduct a reconnaissance study of the
water resource problems of the Illinois River Basin. The Illinois River
watershed is experiencing continued water resource development needs
and is the focus of ongoing Corps and other agency investigations.
However, additional flows are sought downstream of the Lake Tenkiller
Dam and there are increasing watershed influences upstream of Lake
Tenkiller which impact on the quality of water available for fish and
wildlife, municipal and industrial water supply users, and recreation
users of the Lake Tenkiller and Illinois River waters.
Grand (Neosho) Basin Reconnaissance Study.--We request funding in
the amount of $225,000 to conduct a feasibility study of the water
resource problems in the Grand (Neosho) Basin in Oklahoma and Kansas.
There is a need for a basin-wide water resource planning effort in the
Grand-Neosho River basin, apart from the issues associated with Grand
Lake, Oklahoma. The reconnaissance study indicated that there is a
Federal interest in this project and the feasibility will focus on the
evaluation of institutional measures which could assist communities,
landowners, and other interests in northeastern Oklahoma and
southeastern Kansas in the development of non-structural measures to
reduce flood damages in the basin. The reconnaissance study was a
Congressional add new start, but no funding was put into the fiscal
year 2005 President's budget request to continue into the feasibility
stage.
Grand Lake Feasibility Study.--A need exists to evaluate water
resource problems in the Grand-Neosho River basin in Kansas and
Oklahoma to evaluate solutions to upstream flooding problems associated
with the adequacy of existing real estate easements necessary for flood
control operations of Grand Lake, Oklahoma. A study authorized by the
Water Resources Development Act of 1996 was completed in September of
1998 and determined that if the project were constructed based on
current criteria, additional easements would be required. Section 449
of WRDA 2000 directed the Secretary to evaluate backwater effects
specifically due to flood control operations on land around Grand Lake.
That study indicated that Federal actions have been a significant cause
of the backwater effects and according to WRDA 2000, the feasibility
study should be 100 percent federally funded. A Feasibility study is
necessary to determine the most cost-effective solution to the real
estate inadequacies. Changes in the operations of the project or other
upstream changes could have a significant impact on flood control,
hydropower and navigation operations in the Grand (Neosho) River system
and on the Arkansas River Basin system, as well. We urge you to provide
$450,000 to fund feasibility studies for this important project in
fiscal year 2004 and to direct the Corps of Engineers to execute the
study at full Federal expense. This project has been a Congressional
add for the past 2 years, but there are no funds in the fiscal year
2005 President's budget request to continue this project.
Tenkiller Dam Safety Project.--We are pleased that the President's
budget includes funds to advance work for Flood Control and other water
resource needs in Oklahoma. Of special interest to our committee is
funding for the Tenkiller Ferry Lakes Dam Safety Assurance Project in
Oklahoma. This project is slated to be complete in fiscal year 2006 and
continued funding is necessary for safety purposes and economic
efficiencies. We would like to see Tenkiller funded at the $4.4 million
level, which is the Corps' capability for fiscal year 2005.
Canton Dam Safety.--We request that funding in the amount of $5.0
million be provided to continue the Canton Lake Dam Safety Project. The
stability of the existing spillway requires restrictions on the flood
control pool. The flood pool can only be held to a 17-year flood event.
Installation of steel anchors is required to stabilize the existing
spillway so that the project can be operated as originally designed.
Funds were provided by Congress in the fiscal year 2004 Appropriations
Bill to work on this important project, but the administration has not
included any funds in the fiscal year 2005 President's budget.
Section 205.--Although the Small Flood Control Projects Program
addresses flood problems which generally impact smaller communities and
rural areas and would appear to benefit only those communities, the
impact of those projects on economic development crosses county,
regional and sometimes State boundaries. The communities served by the
program frequently do not have the funds or engineering expertise
necessary to provide adequate flood damage reduction measures for their
citizens. Continued flooding can have a devastating impact on community
development and regional economic stability. The program is extremely
beneficial and has been recognized nationwide as a vital part of
community development, so much so in fact that there is currently a
backlog of requests from communities who have requested assistance
under this program. There is limited funding available for these
projects and we urge this program be increased to an annual limit of
$65 million.
We also request your continued support of the Flood Plain
Management Services Program (Section 206 of the 1960 Flood Control Act)
which authorizes the Corps of Engineers to use its technical expertise
to provide guidance in flood plain management matters to all private,
local, State and Federal entities. The objective of the program is to
support comprehensive flood plain management planning. The program is
one of the most beneficial programs available for reducing flood losses
and provides assistance to officials from cities, counties, States and
Indian Tribes to ensure that new facilities are not built in areas
prone to floods. Assistance includes flood warning, flood proofing, and
other flood damage reduction measures, and critical flood plain
information is provided on a cost-reimbursable basis to home owners,
mortgage companies, realtors and others for use in flood plain
awareness and flood insurance requirements.
We also request your support of the Planning Assistance to States
Program (Section 22 of the 1974 Water Resources Development Act) which
authorizes the Corps of Engineers to use its technical expertise in
water and related land resource management to help States and Indian
Tribes solve their water resource problems. The program is used by many
States to support their State Water Plans. As natural resources
diminish, the need to manage those resources becomes more urgent. We
urge your continued support of this program as it supports States and
Native American Tribes in developing resource management plans which
will benefit citizens for years to come. The program is very valuable
and effective, matching Federal and non-Federal funds to provide cost-
effective engineering expertise and support to assist communities,
States and tribes in the development of plans for the management,
optimization and preservation of basin, watershed and ecosystem
resources. The Water Resources Development Act of 1996 increased the
annual program limit from $6 million to $10 million and we urge this
program be fully funded to the programmatic limit of $10 million.
We strongly urge the Appropriations Committee to raise the Corps of
Engineers' budget to $5 billion to help get delayed construction
projects back on schedule and to reduce the deferred maintenance
backlog which is out of control. This will help the Corps of Engineers
meet the obligations of the Federal Government to people of this great
country.
Concerning another related matter, we have deep concerns about the
attempt to re-authorize the Endangered Species Act without significant
beneficial reforms. If a bill is passed through without reforms, it
will be devastating to industry and the country as a whole. We strongly
urge you to take a hard look at any bill concerning this re-
authorization and insure that it contains reasonable and meaningful
reforms. We urge the re-authorization of the act with reforms at the
earliest possible time.
Mr. Chairman, we appreciate this opportunity to present our view on
these subjects.
______
Prepared Statement of the Tennessee-Tombigbee Waterway Development
Authority
Mr. Chairman, I am Donald G. Waldon, Administrator of the
Tennessee-Tombigbee Waterway Development Authority. I am honored to
submit the authority's recommendations to you and your committee
concerning fiscal year 2005 funding needs for the operation and
maintenance of the Tenn-Tom Waterway and the Tennessee River system as
well as construction of new locks at Kentucky and Chickamauga Dams.
This is the 44th consecutive year the waterway compact has provided its
recommendations to the U.S. Congress.
The Tennessee-Tombigbee Waterway Development Authority is a Federal
interstate compact ratified in 1958 by the Congress to promote the
development of the Tenn-Tom and its economic and commerce potential. It
is comprised of the States of Alabama, Kentucky, Mississippi, and
Tennessee.
We, like most other water resources development interests, are most
concerned if not alarmed about the Office of Management and Budget's
continued indifference to ports and waterways as a national budget
priority. The proposed budget for fiscal year 2005 for these and other
programs of the U.S. Army Corps of Engineers is no exception. While the
proposed budget adequately funds construction of some new locks it
woefully under funds others, such as Kentucky and Chickamauga Locks on
the Tennessee River. However, the proposed budget's most serious
deficiency is its inability to adequately fund the operation and
maintenance of completed projects. More Federal investments in the
Nation's infrastructure, including its ports and waterways, will help
stimulate our economy and create more job opportunities. Yet the
administration's budget if approved will result in further
deterioration of locks and other waterway structures, many that were
built over 50 years ago, resulting in more closures and disruption of
commercial shipments and less economic growth. Given the importance of
these projects for helping the Nation to achieve full economic
recovery, we recommend that the Congress increase the Corps' total
funding next year to $5.5 billion or about $600 million more than that
available this year.
TENNESSEE-TOMBIGBEE WATERWAY, AL AND MS
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Fiscal Fiscal Year 2005
Year 2003 Year 2004 ---------------------------
Approp. Approp. Bud. Req. Recomm.
----------------------------------------------------------------------------------------------------------------
Operation & Maintenance..................................... 24.0 22.5 22.254 25.6
Wildlife Mitigation Payments To Alabama and Mississippi..... 2.0 1.5 2.0 2.0
----------------------------------------------------------------------------------------------------------------
We greatly appreciate the support your committee and the Congress
have given to the Tenn-Tom in the past. The waterway saves shippers
some $90 million in transportation costs each year. It has helped
attract over $5 billion in new private investments since its
completion, creating over 50,000 new jobs in the waterway region. Its
attractive recreational facilities draw nearly 3 million visitors
annually. Your continued strong support is critically important in
fiscal year 2005 if the waterway is to continue to generate economic
benefits at this level.
The proposed budget will not provide sufficient funds for the Corps
to adequately maintain the navigation channel. Three locks are
scheduled for closure and repairs this fall that will cost over $1.5
million. With no increase in funding provided, this extraordinary
expense will preclude other important maintenance activities such as
dredging and resource management.
We are pleased that $2 million has been budgeted to reimburse the
States of Alabama and Mississippi to manage nearly 126,000 acres of
wildlife habitat that is part of the Tenn-Tom Wildlife Mitigation
Project. These funds are sufficient for the management of these lands.
However, no funds are available for the Corps to manage some 46,000
acres of other Federal lands that are an important part of the
mitigation project.
The $25.6 million recommended for the operation and maintenance of
the Tenn-Tom will ensure the waterway is adequately maintained during
2005 and generates its expected benefits. While there are other needs,
the recommended increase of $3,246,000 is important to keep the
waterway channel open to commercial navigation, the Corps' top priority
program as shown below:
[In millions of dollars]
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Provide adequate capacity of upland disposal areas to 1.0
accept dredged materials..................................
Additional dredging needed to keep channel open to commerce 1.3
Determine measures to limit shoaling in Aberdeen Lake, the 0.5
waterway's most costly silting problem....................
Initiate corrective measures to eliminate a serious safety 0.3
problem at Bevill Lock and Dam............................
Eradicate noxious aquatic weeds in lakes and channels (the 0.146
public's No. 1 complaint about the waterway...............
------------
Total................................................ 3.246
------------------------------------------------------------------------
The Corps of Engineers could efficiently use an additional $10
million to begin addressing some of the $12 million of urgently needed
but indefinitely deferred repairs to the waterway's facilities that
have accumulated due to of severe budget constraints since fiscal year
1997.
Tennessee River, TN, AL, MS, and KY
The administration's budget does not provide sufficient funds to
adequately maintain the commercial navigation features of the Tennessee
River system. Funds are not available to make scheduled repairs at most
all of the nine locks. Maintenance dredging needed at public ports at
Florence and Decatur, AL will be deferred as well as replacement of a
mobile crane needed at Nickajack Lock, TN.
We recommend that $21,449,000 or an increase of $6,239,000 be
appropriated to fund the above activities. This recommended increase
includes $350,000 and $200,000 to dredge the public ports at Florence
and Decatur, AL, respectively. The Tennessee River is one of the
busiest waterways in the Nation.
Kentucky Lock, KY
Completion of a new lock to replace the nearly 60-year-old,
outmoded lock at Kentucky Dam will eliminate one of the most costly
bottlenecks on the entire waterway system. A commercial tow now waits
an average of 4 hours to transit the lock. These delays continue to
worsen as commerce grows each year. We are very disappointed the
proposed budget effectively mothballs construction of this most
important waterway improvement. The proposed budget of $25,000,000 not
only precludes award of any new contracts it is $10,000,000 short of
that needed to reimburse contractors for work now underway. Such a
budget decision is unconscionable.
We recommend that $55,000,000 be appropriated to keep construction
of this high priority project on a more reasonable and efficient
schedule. This level of funding will maintain a schedule in fiscal year
2005 that will enable the lock to be completed in fiscal year 2013
compared to 2023 or 10 years later based on a schedule anticipated by
the administration budget. This is unacceptable, especially when the
commercial users are paying for one-half of the new lock's cost.
Chickamauga Lock, TN
We greatly appreciate the Congress authorizing construction of a
new lock to replace the old and deteriorating chamber at Chickamauga
Dam in last year's bill. The $5,400,000 appropriated this year will
permit the Corps of Engineers to initiate construction and continue the
detailed design needed for the new 110 600 lock. Regrettably, the
proposed budget does not provide any funds for construction in 2005,
effectively delaying start of construction until at least 2006. Unless
work begins soon, the new lock will not be available when the old
structure is taken out of operation during the next decade because of
safety concerns. This closure would land lock 175 miles of the
Tennessee River, crippling industries, including defense-related, and
other shippers, located in east Tennessee.
We respectfully urge the committee to provide $17,000,000 to
continue construction of this much needed lock replacement. It is also
recommended that $1,480,000 be provided to allow the Corps to continue
repairs to the existing lock to ensure its continued operation until
the new lock is completed.
Thank you again for allowing the Tennessee-Tombigbee Waterway
Development Authority to submit these recommendations to you for your
consideration.
______
Prepared Statement of Kansas City, Missouri
Mr. Chairman, the City of Kansas City, Missouri, welcomes this
opportunity to provide written testimony to the Subcommittee on Energy
and Water Development regarding appropriations for fiscal year 2005 and
requests that this written testimony be included in the formal hearing
record.
The City of Kansas City, Missouri, in cooperation with the Corps of
Engineers, presently have six major flood damage reduction projects
underway. All of these projects are essential to the sustainment and
revitalization of prominent and long-standing commercial, business and
industrial communities in this region, and when complete will provide
substantially increased levels of flood protection. Some of these
projects are located on urban streams subject to severe flash flooding,
which run along major roadways, resulting in an extremely hazardous
threat to public safety.
Blue River Channel, Kansas City, Missouri--$8,000,000; Continue
Construction
The Blue River Channel project, currently under construction,
represents our most pressing need and for fiscal year 2005 we are
requesting that this project be appropriated $8,000,000. This will
allow the Corps to complete work that is already under construction,
and to make some progress on the next phase of the Blue River project,
which includes a grade control structure. That structure is necessary
to drop the flow line of the existing channel bed to that of the newly
deepened channel downstream, which prevents the flow in the stream from
eroding the channel bed upstream.
The Blue River Channel project when complete will significantly
reduce the flood threat to inhabitants of the Blue Valley.
Additionally, the river winds through a long-standing business district
that, after much severe flooding, has now been partially abandoned. The
channel improvement will bring many of these sites out of the
floodplain and will reduce flooding depths by 6 to 8 feet. This will
serve as a means to help reclaim Brownfield sites in the valley for
redevelopment and help to rebuild a once thriving Blue Valley
community.
Turkey Creek Basin, Kansas and Missouri--$2,500,000; Continue
Construction
Another very important project in the Kansas City region is the
Turkey Creek Basin, Kansas and Missouri. As mentioned above this area
suffered a devastating flood in 1998, which is typical every 3 to 5
years. Providing flood protection for this highly traveled business
corridor has proven to be very complex and that problem had been
studied for nearly 35 years. Finally in 2003 the project received
reauthorization at a total cost of $74,000,000, with a defined cost
share of $46,000,000 Federal and $28,000,000 local. Major features of
the Federal project include channel widening, a levee, hillside
interceptors, and modifications to the Turkey Creek tunnel.
Funding is requested in the amount of $2,500,000 to continue
construction of a flood damage reduction project that will serve to
protect the community along Southwest Blvd. in the Kansas City
metropolitan area of both Kansas and Missouri. In the alternative, if
an amount less than that requested can be appropriated, language is
requested such that ``The non-Federal Interest shall receive credit
toward the non-Federal share of project costs for construction work
performed by the non-Federal interest before execution of the project
cooperation agreement if the Secretary finds that the work performed by
the non-Federal interest is integral to the project.''
This language will allow for the Unified Government of Kansas City,
Kansas and Wyandotte County, and the City of Kansas City, Missouri to
proceed with the Turkey Creek Tunnel modifications identified in the
Final Report of the Chief of Engineers. These modifications are
necessary to insure that the increased flow carried to the tunnel by
the widened channel upstream can be safely passed through the tunnel to
the Kansas River. This channel widening was designed by the Corps of
Engineers and included in the Chief's report, and is currently under
construction by the Kansas Department of Transportation.
Blue River Basin, Kansas City, Missouri--$4,000,000; Continue
Construction
The Blue River Basin, Kansas City, Missouri project, commonly known
as the Dodson Industrial District Levee, is also located along the Blue
River. Construction is currently underway on the floodwall portion and
associated work, which is scheduled to be complete in 2005. Funding is
required to pay for this work already under contract. The project
requires modification of two major 96-inch diameter sewer structures in
order for the levee-floodwall to function properly. The work on these
elements needs to proceed in such a manner to assure that these
facilities are protected during construction, are able to continue to
function properly, and are not unnecessarily exposed to damage during
an extended construction schedule.
The City has been working aggressively to honor our commitments to
this project, and supports it moving forward in the most expeditious
manner possible in order that this flood protection, which is essential
to our having safe emergency access to a large portion of the City
south of the Missouri River during flooding situations, can be
maintained via access from the newly completed midtown expressway known
as Bruce R. Watkins Drive. The City has programmed $5 million over 3
years to meet our local sponsor cost share. The project consists of a
$17 million levee that will protect $240 million in property investment
from the 500-year flood.
Kansas Citys, Kansas and Missouri--$650,000; Continue Feasibility Study
Study area encompasses two major rivers and seven levee units, and
has four local sponsors. The levees are located along the Missouri and
Kansas Rivers through the heart of the Kansas City metropolitan area,
and protect its most densely developed business regions from floods.
The 1993 flood came within inches of topping the Central Industrial
District Levee, evidencing a need to evaluate how the seven levee units
comprising the flood protection system for the Kansas City area
functions as a whole, and to determine inadequacies and inconsistencies
in the levels of protection. The units are Argentine, Armourdale, and
Fairfax-Jersey Creek, all in Kansas; Central Industrial District, in
Kansas and Missouri; and North Kansas City, Birmingham and East
Bottoms, all in Missouri. Construction of these levees began in the
1940's and was completed in 1980. The Feasibility Study began in
September 2000, with an estimated cost of $2,782,323 cost shared 50
percent Federal--50 percent local funds. Funding is requested to
continue the Feasibility Study to develop and study possible project
alternatives, perform environmental studies, and select the plan
recommended for construction. The 1970 Flood Control Act, Section 216,
provides a continuing authority to reexamine completed Federal
projects.
Brush Creek Basin, Kansas and Missouri--$200,000; Continue
Reconnaissance Study
Because this project provides the mechanism by which the region can
work cooperatively using a watershed based approach to achieve the
allied purposes of flood damage reduction, ecosystem restoration and
other purposes, it is important that adequate funding be provided to
collect the relevant data, coordinate among the many stakeholders, and
establish cost sharing relationships needed to move forward. The City
of Kansas City, Missouri and Johnson County, Kansas have committed
significant local resources toward the completion of the flood
mitigation and stream restoration work along Brush Creek, and are
committed to continuing to support this effort and working together
with the Mid-America Regional Council, Corps of Engineers,
Environmental Protection Agency, Brush Creek Community Partners, and
other stakeholders to achieve the goals established and agreed upon as
part of the Brush Creek Basin Wide Study. Brush Creek is known as the
``Cultural Corridor'' in Kansas City and serves as a highly traveled
business, residential and recreational corridor. This study effort
aligns with the goals established by the residents, corporations,
cities and other stakeholders along the creek.
Swope Park Industrial Area, Kansas City, Missouri--$200,000; Continue
Design
Development of the 53-acre Industrial Park was substantially
completed prior to enactment of the Federal Flood Insurance Act, and
the entire area is now located within the 100-year floodplain as
currently mapped by FEMA, and is largely within the floodway. The Swope
Park Industrial Area has limited access, one-way in and out, with an
active railroad track crossing near the entrance to the Park, in any
given year there is a 1 in 5 chance that flooding will interrupt
roadway access to the Park, and an approximately 1 in 7 chance that
buildings will be flooded. Especially hazard flood conditions, and a
threat to public safety, exist as people and businesses must decide
whether to evacuate the Park during the initial stages of flooding, or
risk being stuck with no surface means of egress if the water continues
to rise.
Main Street Sewer Outfall/Riverfront Heritage Trail/Missouri River Bank
Stabilization--$7,000,000; Continue Construction
We are also seeking funding for these projects to provide a safe
and viable Kansas City Riverfront. This Missouri Riverfront project is
comprised of five components being accomplished through a coordinated
effort by public, private and non-profit organizations including Kansas
City River Trails, Inc., the Port Authority of Kansas City, United
States Corps of Engineers and the City of Kansas City, Missouri.
Funding to complete this essential link between development both East
and West of the project site is being sought from a variety of public
and private sources to create a revitalized riverfront.
The bank of the Missouri River collapsed in May of 2003 causing
significant damage to the Main Street Sewer Outfall that drains a large
portion of the downtown Kansas City basin. The City is in the process
of constructing repairs for the sewer outfall and some slope
stabilization. This East/West trail connector is a vital segment of the
Kansas City Riverfront Heritage Trail system within the Riverfront West
area, and when constructed it will complete a bi-State bicycle,
pedestrian and green space trail system stretching from the Richard L.
Berkley Riverfront Park and Isle of Capri Casino at the east to the
original settlement of the Town of Kansas and the Indian Cemetery in
Kansas City, Kansas at the west. The Trail includes a series of
interpretive artworks, kiosks and signs commemorating Lewis and Clark's
Corps of Discovery journey and Kansas City's relationship to its
rivers. The Habitat Restoration will be constructed by the U.S. Corps
of Engineers in corporation with the Port Authority of Kansas City
Missouri. Project estimates and funding availabilities are shown in the
table below.
----------------------------------------------------------------------------------------------------------------
Funding
Project Component Estimate Available Funding Sought
----------------------------------------------------------------------------------------------------------------
Main Street Sewer Outfall....................................... $3,500,000 $220,000 $3,280,000
Slope Stabilization............................................. 2,400,000 380,000 2,020,000
East-West Trail Connection...................................... 1,750,000 30,000 1,720,000
Interpretive Center............................................. 1,600,000 200,000 1,400,000
Habitat Restoration............................................. 2,500,000 500,000 2,000,000
-----------------------------------------------
Total..................................................... 11,750,000 1,330,000 10,420,000
----------------------------------------------------------------------------------------------------------------
The City of Kansas City, Missouri appreciates the past assistance
we have received with local water resource projects. We are prepared to
provide our share of funding in the future, and respectfully request
that Federal funding adequate to keep these very important projects
moving toward the soonest possible completion be appropriated in the
upcoming year.
______
Prepared Statement of the Upper Mississippi River Basin Association
[In millions of dollars]
------------------------------------------------------------------------
President's UMRBA
Request Recommendation
------------------------------------------------------------------------
Construction General:
Upper Miss. River System 28.000 33.250
Environmental Mgt. Program.........
Major Rehabilitation of Locks and 13.600 13.600
Dams 19 and 24.....................
Major Rehabilitation of Locks and .............. 21.700
Dams 3, 11, and 27.................
Continuing Authorities (Section 13.500 25.000
1135)..............................
Continuing Authorities (Section 206) 10.000 25.000
Operation and Maintenance:
O&M of the Upper Mississippi 167.733 231.759
Navigation System..................
General Investigations:
Upper Mississippi and Illinois .............. 18.000
Waterway Navigation and Ecosystem
Improvements PED...................
Upper Mississippi River .994 1.400
Comprehensive Plan.................
Research and Development............ 20.800 20.800
Stream Gaging (U.S. Geological .600 .600
Survey)............................
------------------------------------------------------------------------
The Upper Mississippi River Basin Association (UMRBA) is the
organization created in 1981 by the Governors of Illinois, Iowa,
Minnesota, Missouri, and Wisconsin to serve as a forum for coordinating
river-related State programs and policies and for collaborating with
Federal agencies on regional issues. As such, the UMRBA works closely
with the Corps of Engineers on a variety of programs for which the
Corps has responsibility. Of particular interest to the basin States
are the following:
CONSTRUCTION GENERAL
Environmental Management Program
For the past 17 years, the Upper Mississippi River System
Environmental Management Program (EMP) has been the premier program for
restoring the river's habitat and monitoring the river's ecological
health. As such, the EMP is key to achieving Congress' vision of the
Upper Mississippi as a ``nationally significant ecosystem and a
nationally significant commercial navigation system.'' Congress
reaffirmed its support for this program in the 1999 Water Resources
Development Act by reauthorizing the EMP as a continuing authority and
increasing the annual authorized appropriation to $33.52 million. The
UMRBA is pleased that the administration has requested $28 million for
the EMP in fiscal year 2005. The fact that the administration has
identified the EMP as one of eight Corps projects ``that are the
highest priorities in the Nation,'' is tribute to the EMP's success.
Yet annual appropriations for the EMP have fallen short of the
authorized funding levels for the past 8 years and the program is still
suffering from the dramatic 40 percent cut it suffered in fiscal year
2003. Thus, the UMRBA strongly urges Congress to appropriate full
funding of $33.52 million for the EMP in fiscal year 2005.
EMP habitat restoration projects include activities such as
building and stabilizing islands, controlling water levels and side
channel flows, constructing dikes, and dredging backwaters and side
channels. At the administration's funding level of $28 million,
approximately $17.7 million would be allocated to the planning, design,
and construction of such habitat projects. In particular, this level of
investment will support planning and design for 20 projects and
construction work on 18 projects, bringing construction to completion
on 5 of these projects. Approximately $8.7 million would be devoted to
the EMP Long Term Resource Monitoring program (LTRMP) under an EMP
budget of $28 million. This funding is critical to the future viability
of the EMP's monitoring component, which has suffered from funding
shortfalls in recent years. Data collection related to water quality,
sediment, fish, invertebrates, and vegetation has been reduced or
suspended; bathymetric surveys have been eliminated; laboratory
analysis has been cut back; data analyses and science planning has been
curtailed; and land cover mapping has been postponed. Planning is
currently underway to restructure and redesign the program to enhance
its ability to meet increasing demands for information with decreasing
resources. But it is essential that funding be increased in fiscal year
2005 to revive many of the essential functions that have been
eliminated or deferred.
Meeting the ecological restoration and monitoring needs on the
Upper Mississippi River with renewed commitment and enhanced investment
is critical. Within the next few months, the Corps is expected to
release the draft feasibility report from its Navigation Study on the
Upper Mississippi River and Illinois Waterway System, including a
recommended plan for improving both the navigation infrastructure and
ecosystem. Yet, without a strong EMP program as one of the tools to
meet river environmental needs, it is unlikely that the plan can be
successfully implemented. The UMRBA thus strongly urges that the EMP be
fully funded at $33.52 million in fiscal year 2005.
Major Rehabilitation of Locks and Dams
Given that most of the locks and dams on the Upper Mississippi
River System are over 60 years old, they are in serious need of repair
and rehabilitation. For the past 18 years, the Corps has been
undertaking major rehabilitation of individual facilities throughout
the navigation system in an effort to extend their useful life. This
work is critical to ensuring the system's reliability and safety.
The UMRBA supports the Corps' fiscal year 2005 budget request for
major rehabilitation work at Lock and Dam 19 ($4.8 million) and Lock
and Dam 24 ($8.8 million). Lock and Dam 19, at Keokuk, Iowa, is in
particular need of rehabilitation given the deterioration of its gates,
resulting in dangerous conditions. Lock and Dam 24, located near
Clarksville, Missouri, is nearing completion of the first phase of its
$87 million rehabilitation. Lock wall concrete repairs are underway and
expected to be completed in fiscal year 2005. In addition, fiscal year
2005 funding will support continued dam tainter gate rehabilitation.
The UMRBA also supports funding for major rehabilitation of Lock
and Dam 3 ($5 million), Lock and Dam 11 ($10.9 million), and Locks 27
($5.8 million), none of which are currently funded in the
administration's fiscal year 2005 budget request. In the case of Lock
and Dam 11, the lack of funding is particularly problematic because
work is already underway. Continued funding is needed in fiscal year
2005 to proceed with bulkhead construction and installation and lock
repair. With regard to Lock and Dam 3, funds are needed in fiscal year
2005 to complete the reevaluation report and begin plans and
specifications for correcting safety problems at this facility. Lock
and Dam 3, near Red Wing, Minnesota is located on a bend in the river,
which causes an outdraft current that tends to sweep down-bound tows
toward the gated dam. A related problem is maintaining the structural
integrity of a set of three earthen embankments connecting the gated
dam to high ground on the Wisconsin side. Rehabilitation of Locks 27 is
also critical, given its location at a critical juncture in the inland
waterway system, through which traffic on the Mississippi, Illinois,
and Missouri Rivers passes. The rehabilitation plan calls for
rehabilitation of various structural, electrical, and mechanical
components of this structure, which is over 50 years old.
Continuing Authorities (Section 1135 and 206)
The Corps of Engineers' Section 1135 and Section 206 continuing
authorities provide an important tool for addressing ecosystem
restoration needs, particularly in riverine environments. The three
Corps Districts in the Upper Mississippi River Basin have undertaken
many such projects over the past few years. While some projects are on
the Mississippi River, others are located on tributaries, wetlands, and
watersheds throughout the basin. There are currently more projects than
can be supported with the limited funding proposed in fiscal year 2005.
While the Section 1135 and Section 206 programs are each authorized to
be funded at $25 million annually, the President's fiscal year 2005
budget requests only $13.5 million for Section 1135 and $10.0 million
for Section 206. Given that this relatively small amount is intended to
support projects nationwide, it is not surprising that many projects in
the 5 States of the Upper Mississippi River Basin remain unfunded. For
example, in the Rock Island District alone, there are 5 new and 15 on-
going Section 206 projects and 2 on-going Section 1135 projects that
could utilize funding in fiscal year 2005. The total costs of the
Section 206 projects in this one district far exceed the funding for
Section 206 nationwide. Thus, the UMRBA supports funding for both the
Section 1135 and Section 206 programs at their fully authorized amount
of $25 million.
OPERATION AND MAINTENANCE
Operation and Maintenance (O&M) of the Upper Mississippi River
Navigation System
The Corps of Engineers is responsible for operating and maintaining
the Upper Mississippi River System for navigation. This includes
channel maintenance dredging, placement and repair of channel training
structures, water level regulation, and the routine operation of 29
locks and dams on the Mississippi River and 7 locks and dams on the
Illinois River. The fiscal year 2005 budget totals approximately $169
million for O&M of this river system, which includes $111.410 million
for the Mississippi River between Minneapolis and the Missouri River,
$21.236 million for the Mississippi River between the Missouri River
and Ohio River, and $35.087 million for the Illinois Waterway.
These funds are critical to the Corps' ability to maintain a safe
and reliable commercial navigation system. In addition, these funds
support a variety of activities that ensure the navigation system is
maintained while protecting and enhancing the river's environmental
values. For example, O&M funds support innovative environmental
engineering techniques in the open river reaches such as bendway weirs,
chevrons, and notched dikes that maintain the navigation channel in an
environmentally sensitive manner. In addition, water level management
options for a number of pools in the impounded portion of the river are
being evaluated under the O&M program. Pool level management, such as
that being tested in Pool 8 and evaluated other upper river pools, is a
promising new approach for enhancing aquatic plant growth and
overwintering conditions for fish, without adversely affecting
navigation.
The UMRBA is pleased that the President's fiscal year 2005 funding
request for O&M of the Upper Mississippi River System is above fiscal
year 2004 appropriations for some of the river reaches. Unfortunately,
the request is well below what is needed. In particular, there is a
growing backlog of maintenance needs as a result of historically flat
line budgets. In addition, as a result of unusual funding constraints
in the St. Paul District in fiscal year 2004, that District is
deferring contractor payments and all new contract awards.
Unmet needs include such items as major maintenance at Lock and Dam
5, land acquisition for dredged material disposal sites, replacement of
dam gates and lift gates, repair of operating components, and lockwall
resurfacing.
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Year Fiscal Year
Upper Mississippi River System O&M Accounts 2004 Fiscal Year 2005 Full
Appropriations 2005 Request Capability
----------------------------------------------------------------------------------------------------------------
Mississippi River Between MO River and Minneapolis:
St. Paul District (MVP)..................................... 36.056 51.030 61.340
Rock Island District (MVR).................................. 45.000 42.473 53.287
St. Louis District (MVS).................................... 18.000 17.907 25.916
Mississippi River Between Ohio and MO Rivers.................... 18.099 21.236 31.793
Illinois Waterway:
Rock Island District (MVR).................................. 25.726 33.273 57.274
St. Louis District (MVS).................................... 1.889 1.814 2.149
----------------------------------------------------------------------------------------------------------------
The UMRBA supports increased funding for O&M of the Upper
Mississippi and Illinois River System to meet routine on-going
operations and maintenance needs, and to begin to address the growing
unfunded maintenance backlog. Full capability funding in fiscal year
2004 for all three Upper Mississippi River districts totals $231.7
million.
GENERAL INVESTIGATIONS
Upper Mississippi River System Navigation and Ecosystem PED
The Upper Mississippi River and Illinois Waterway Navigation Study,
which began in 1993 is nearing completion. The draft feasibility report
is scheduled for release April 30, 2004 and the final Chief's Report is
expected in November 2004. Since the study was restructured in 2001, it
is designed to yield an integrated plan, incorporating both navigation
improvements and ecosystem restoration. It has also been a truly
collaborative process involving five Federal agencies, five States, and
representatives from a broad spectrum of stakeholder groups. The
recommendations resulting from this extraordinarily complex planning
process promise to be the most important investment for the future of
the Upper Mississippi River that this region has had in decades.
The President's fiscal year 2005 budget request includes no funding
for this critically important planning effort. While the feasibility
study phase will be essentially complete by fiscal year 2005, there
will be on-going planning and design needs. Thus, the UMRBA supports
funding of $18 million, which we understand is the Corps' capability,
to advance the planning and initiate design. Such funding would enable
significant progress to be made on both the navigation and ecosystem
improvements, including planning and design work for switch boats,
mooring cells, locks, system mitigation, and ecosystem restoration
projects.
Upper Mississippi River Comprehensive Plan (Flood Damage Reduction)
Section 459 of the Water Resources Development Act of 1999
authorized the Corps to develop what is termed the ``Upper Mississippi
River Comprehensive Plan,'' the primary focus of which is systemic
flood damage reduction and flood protection. Since planning began in
December 2001, funding shortfalls have been significant and the study
has been suspended a number of times. In addition, only $944,000 has
been requested in fiscal year 2005. It is thus doubtful that the study
will be completed within the 3-year time frame Congress directed when
the study was first authorized in WRDA 1999, and later reaffirmed in
WRDA 2000.
Although the assessment of alternative plans is underway,
substantial work remains to be done, including completing that
alternatives evaluation and conducting public meetings. Of particular
interest to the States, is development and evaluation of an ``Emergency
Action Scenario'' that will help the Corps and State agencies
understand the implications of decisions they may be faced with making
when fighting a flood such as the one in 1993. Such ``what if''
analysis, in combination with the evaluation of structural and
nonstructural systemic flood damage reduction options, is critical.
Thus, the UMRBA supports funding of $1.4 million for the Upper
Mississippi River Comprehensive Plan in fiscal year 2005.
Research and Development
The President's fiscal year 2005 budget request for Research and
Development includes funding to support the Navigation Economic
Technologies (NETS) research program. NETS is working to develop a
standardized and defensible suite of economic tools to evaluate
navigation improvements. The goal is to develop simulation models and
data gathering techniques that are reasonably transparent and
computationally accurate, yield nationally consistent results, and are
acceptable to outside peer review. The need for such research has
become increasingly obvious over the past few years, as the Corps has
struggled to address the economic complexities and uncertainties
associated with navigation improvements on the Upper Mississippi and
Illinois Rivers. Significant advances in economic modeling have been
made as part of that feasibility study. Yet additional work is needed
to help inform future decisions. Thus, the UMRBA strongly supports
funding for the NETS program, which is programmed for $2.5 million in
fiscal year 2005 under the Corps' Research and Development budget.
Stream Gaging
The Corps of Engineers, in cooperation with the USGS, operates
approximately 150 stream gages in the Upper Mississippi River Basin. In
fiscal year 2004, the Corps' share of the cost of these gages is $1.946
million. Most of these stream gages are funded through the Corps' O&M
account for the specific projects to which the gages are related.
However, there are a number of gages that are not associated with a
particular project. Thus, UMRBA supports the $600,000 requested under
General Investigations to support the Corps' share of non-project USGS
stream gages, many of which are located in the five States of the Upper
Mississippi River Basin. In fiscal year 2004, approximately $108,000
was provided by these ``General Coverage Funds'' for gages in the St.
Paul and Rock Island Districts.
______
Prepared Statement of the Ventura Port District
The Ventura Port District respectfully requests that the Congress:
--Support the administration's request for $2,910,000 to be included
in the fiscal year 2005 Energy and Water Development
Appropriations Bill for the U.S. Army Corps of Engineers
maintenance dredging of the Ventura Harbor Federal channel and
sand traps.
--Include $300,000 in the fiscal year 2005 Energy and Water
Development Appropriations Bill to complete a cost shared
Feasibility Study to determine the advisability of modifying
the existing Federal navigation project at Ventura Harbor to
include a sand bypass system.
BACKGROUND
Ventura Harbor, homeport to 1,500 vessels, is located along the
Southern California coastline in the City of San Buenaventura,
approximately 60 miles northwest of the City of Los Angeles. The harbor
opened in 1963. Annual dredging of the harbor entrance area is usually
necessary in order to assure a navigationally adequate channel. In
1968, the 90th Congress made the harbor a Federal project and committed
the U.S. Army Corps of Engineers to provide for the maintenance of the
entrance structures and the dredging of the entrance channel and sand
traps.
The harbor presently generates more than $40 million in gross
receipts annually. That, of course, translates into thousands of both
direct and indirect jobs. A significant portion of those jobs are
associated with the commercial fishing industry (the harbor is
consistently amongst the top ten commercial fishing ports in the United
States), and with vessels serving the offshore oil industry.
Additionally, the headquarters for the Channel Islands National Park is
located within the harbor, and the commercial vessels transporting the
nearly 100,000 visitors per year to and from the Park islands offshore,
operate out of the harbor. All of the operations of the harbor,
particularly those related to commercial fishing, the support boats for
the oil industry, and the visitor transport vessels for the Channel
Islands National Park are highly dependent upon a navigationally
adequate entrance to the harbor.
OPERATIONS & MAINTENANCE NEEDS
Maintenance Dredging
It is estimated that $2,910,000 will be required to perform routine
maintenance dredging of the harbor's entrance channel and sand traps
during fiscal year 2005. This dredging work is absolutely essential to
the continued operation of the harbor.
STUDY NEEDS
It is estimated that $300,000 will be required during fiscal year
2005 to complete a cost shared Feasibility Study to determine the
advisability of modifying the existing Federal navigation project at
Ventura Harbor to include a sand bypass system. Given the continuing
need for maintenance dredging, it is appropriate to determine if a sand
bypass system or other measures can accomplish the maintenance of the
harbor in a manner that is more efficient and cost effective than the
current contract dredging approach.
______
Prepared Statement of the Port of Garibaldi
Mr. Chairman and members of the subcommittee, my name is William
Schrieber. I am an elected Commissioner of the Port of Garibaldi,
Oregon, located on Tillamook Bay on the Oregon Coast. We are thankful
for the support provided by the committee for fiscal year 2002, 2003
and 2004, and we also appreciate the opportunity to present our views
on fiscal year 2005 appropriations issues.
APPROPRIATIONS REQUEST
The Port of Garibaldi requests a $2,600,000 appropriation for
operations and maintenance (O&M) of Tillamook Bay and Bar, Oregon.
These funds will allow the U.S. Army Corps of Engineers' (Corps)
Portland District continue the protection, restoration and repair of
the Tillamook Bay North and South Jetties. Specifically, the funds will
allow the Corps to build a revetment near the North jetty root, and
perform additional restoration and repair work on the South jetty.
The Committee provided an additional $200,000 for a Major
Maintenance Report in fiscal year 2002, $300,000 for Plans and
Specifications in fiscal year 2003, and $300,000 to begin construction
of the revetment in fiscal year 2004. The final amount provided by
Congress for fiscal year 2004 was $400,000. These appropriations were
made above the administration's budget requests for the project. The
Major Maintenance Report was completed in December 2003. The total cost
to build the revetment and 100 ft. caps at the North and South Jetty
heads will be approximately $16,700,000. These have been identified by
the Portland District of the U.S. Army Corps of Engineers as among the
minimum and necessary repairs to achieve a stable project. To undertake
all necessary repairs would cost approximately $41,300,000. The
administration did not request funding for this project for fiscal year
2005.
REPORT ON THE TILLAMOOK BAY JETTY SYSTEM
There are serious problems with both jetties. The Corps' ongoing
engineering analysis demonstrates that erosion on the north side of the
North Jetty continues at a highly accelerated rate. Frequently, the
U.S. Coast Guard (USCG) pulls its crew members out of the tower located
near the root of the North Jetty because of the threat of a jetty
breach at that site during periods of high seas. Should the breach
occur, shellfish beds, a county park and a State highway would sustain
severe damage. The USCG has also determined that deterioration of the
South Jetty has created a dangerous threat to navigation safety.
A functional Tillamook Bay Jetty System is key to maintaining
navigation safety, protecting both public and private property and the
environment, and preserving the economic vitality of the Oregon Coast.
In December 2003, the Corps completed a Major Maintenance Report
for the Tillamook North and South Jetties. The following paragraphs are
included in the executive summary of the report.
``The north and south jetties at the entrance to Tillamook Bay have
experienced damage to both jetty heads, trunks, and north jetty root. A
recent apparent increase in the Pacific Ocean wave climate has exposed
both jetties to more extreme storm waves, especially the south jetty
which is more exposed to southwesterly storm events. In addition to the
increases concern regarding jetty stability, there is concern that
further recession of the jetty heads will contribute to already
hazardous navigation conditions over the ebb tital shoal or bar.
``Erosion of the shoreline along the north jetty is a major concern
in terms of a potential breach at the jetty root. The jetty root has a
smaller cross-section and the proximity of the deep channel (40 ft. in
depth) to this section of jetty is of increasing concern. The
increasingly severe shore erosion at the north jetty root appears to be
related to the north jetty head recession.
``The north jetty has lost 384 ft. of jetty from the seaward end of
its 5,700 ft. authorized length. The south jetty has lost 666 ft. from
the seaward end of its 8,025 ft. authorized length. By 2006, at
historical jetty head recession rates, the north jetty will be 480 ft.
shorter than the authorized length. The south jetty will be 890 ft.
shorter than the authorized length. The south jetty has never been
repaired since its construction in 1969 to 1979 (25 to 35 years). The
north jetty damage reach includes 1,050 ft. that has not been repaired
since construction in 1918 (86 years).''
Background.--Since settlement in the 1800's, Tillamook County's
primary industries have been dairy, water and timber oriented.
Tillamook Bay and the five rivers which feed it have historically
furnished an abundance of shellfish, salmon and other species of fresh-
water and ocean food fish. Over the past century the area has become
renowned as one of the West's premier sport fishing locations.
Tillamook County's economy has always depended on prime conditions
in Tillamook Bay, its estuary and watershed for cultivation and use of
these natural resources. However, human activities including forestry,
agriculture and urban development have adversely impacted the entire
Bay area by increasing erosion rates and landslide potential in the
forest slopes and significantly reducing wetland and riparian habitat.
All five rivers entering Tillamook Bay now exceed temperature and/or
bacteria standards established by the Oregon Department of
Environmental Quality. The installation of a north jetty on Tillamook
Bay begun in 1912 caused increased erosion of the Bay's westerly land
border, Bayocean Spit, on the ocean side. The Spit breached in 1950.
This allowed the Bay to fill with ocean sands on its southern and
western perimeters and caused a major reduction in shellfish habitat,
sport-fishing area, and an increase in the cross-section of the bar. A
south jetty begun in 1969 helped stabilize the Spit and created the
navigation channel presently in use.
ECONOMIC CHARACTERISTICS
The following was also included in the Corps December 2003 Major
Maintenance Report.
``Entrance and Port Usage.--The Tillamook entrance is one of the
most heavily used on the Oregon Coast and recent surveys indicate than
the Port of Garibaldi is the third busiest recreational port in Oregon,
behind the Port of Brookings and the Port of Umpqua. Total visitation
to the Port of Garibaldi was 64,350 (Party Days) in 2002. Visitors in
the area spent $6,747,000 on trip related expenditures to the port.
Sixty-nine percent of this spending was captured by local economy
yielding $4,666,000 in direct sales to tourism related firms. These
sales generated $1,847,000 in direct personal income and supported 118
direct jobs. With multiplier effects, visitor spending resulted in
$6,446,000 total sales, $2,543,000 in total personal income, and
supported 143 jobs.
``Port Fleet Considerations.--Total number of boats associated with
the Port of Garibaldi was 619 in 2002. Boat owners in this area spent
$1,127,000 on boat related annual and fixed expenditures in the region.
Thirty-nine percent of this spending was captured by local economy
yielding $434,000 in direct sales to related industries. These sales
generated $168,000 in direct personal income and supported 08 direct
jobs. With multiplier effects, visitor spending resulted in $589,000
total sales, $223,000 in total personal income, and supported 11 jobs.
The Port of Garibaldi is also an active commercial fishing port.
Garibaldi's total landing volume and value in the year 2000 was 1.7
million pounds and $2.0 million. The share of landing volume for
groundfish was 16 percent. There were a total of 1,548 fishing trips
made by 92 different vessels in the year 2000. There were nine
different processors, buyers, restaurants, etc. issuing more than
$10,000 in fish tickets.
``Marine Facilities.--The Port of Garibaldi has over 300 slips
available, with 60 slips available for vessels over 40 feet in length.
The port also has 300 feet of dock available for transient vessels. The
Coast Guard Tillamook Bay Station reports search and rescue cases
annually. From 1995 to 2001, the station reported an average of 215
cases each year, with a high of 282 cases in 1999 and, a low of 152
cases in 2000.''
CONCLUSION
On behalf of the Port of Garibaldi and Tillamook County, I thank
the committee for giving me this opportunity to provide testimony on
the Tillamook Bay Jetty System.
______
Prepared Statement of the Louisiana Governor's Task Force on Maritime
Industry
THE LOWER MISSISSIPPI RIVER AND CONNECTING WATERWAYS AND THE J. BENNETT
JOHNSTON WATERWAY
Mississippi River Ship Channel, Gulf to Baton Rouge, LA.--Recommend
the Corps be funded $537,000 (Construction General) to perform required
work on the saltwater intrusion Phase 1 mitigation plan and to prepare
a report on deepening the river to its authorized depth of 55-foot
depth.
Mississippi River, Baton Rouge to the Gulf--Maintenance Dredging.--
The President's Fiscal Year 2005 Budget is $59,125,000 under O&M
General. Recommend that the Corps be funded $74,400,000 to construct
foreshore rock dike, repair South Pass jetties, and to repair Southwest
Pass pile dike and tie-in.
Mississippi River Gulf Outlet (MRGO), LA--Maintenance Dredging.--
The President's Fiscal Year 2005 Budget is $13,004,000 under O&M
General. Recommend that the Corps be funded $38,400,000 for maintenance
dredging and bank stabilization.
Inner Harbor Navigation Canal (IHNC) Lock, LA.--The President's
Fiscal Year 2005 Budget is $10,000,000 in Construction General funds.
Recommend that the Corps be funded $24,000,000 to continue
construction, design and mitigation for the IHNC Lock replacement.
Mississippi River Outlets at Venice, LA.--The President's Fiscal
Year 2005 Budget is $424,000 under O&M General. Recommend that the
Corps be funded $3,700,000 to perform critical maintenance dredging and
to repair jetties.
Bayou Sorrel Lock, LA.--The President's Fiscal Year 2005 Budget is
$550,000 under General Investigation Studies to advance pre-engineering
design for the replacement of Bayou Sorrel Lock on the Gulf
Intracoastal Waterway (GIWW), Morgan City-to-Port Allen alternate
route.
Gulf Intracoastal Waterway, LA and TX.--The President's Fiscal Year
2005 Budget is $17,476,000 under O&M General. Recommend that the Corps
be funded $27,300,000 to perform critical maintenance at the navigation
locks.
MRGO Reevaluation Study, LA.--The President's Fiscal Year 2005
Budget is $225,000 (General Investigation) to initiate an ecosystem
restoration study of the MRGO.
J. Bennett Johnston Waterway, Mississippi River to Shreveport,
LA.--The President's Fiscal Year 2005 Budget is $4,000,000
(Construction General) and $10,600,000 (O&M General). Recommend that
the Corps be funded $20,000,000 (Construction General) and $18,000,000
(O&M, General) to initiate new work and complete work already underway.
As Chairman of the Louisiana Governors Task Force on Maritime
Industry, I hereby submit testimony to the Senate Subcommittee on
Energy and Water Development on behalf of the ports on the lower
Mississippi River and the J. Bennett Johnston Waterway and the maritime
interests related thereto of the State of Louisiana relative to
congressional appropriations for fiscal year 2005.
The U.S. Army Corps of Engineers reports that in 2002 a total of
421.1 million tons of foreign and domestic waterborne commerce moved
through the consolidated deepwater ports of Louisiana situated on the
lower Mississippi River between Baton Rouge and the Gulf of Mexico.
Deepening of this 232-mile stretch of the River to 45 feet has been a
major factor in tonnage growth at these ports. Due in large part to the
efforts of Congress and the New Orleans District of the Corps,
Louisiana's ports and the domestic markets they serve can compete more
productively and effectively in the global marketplace. Ninety-one
percent of America's foreign merchandise trade by volume (two-thirds by
value) moves in ships, and 20.5 percent of the Nation's foreign
waterborne commerce passes through Louisiana's ports. Given the role
foreign trade plays in sustaining our Nation's growth, maintaining the
levels of productivity and competitiveness of Louisiana's ports is
essential to our Nation's continued economic well-being.
In terms of transportation services and global access, Louisiana
ports enjoy a distinct competitive advantage. Hundreds of barge lines
accommodate America's waterborne commerce on the lower Mississippi
River. The high level of barge traffic on the river is indicated by the
passage of more than 293,000 barges through the Port of New Orleans
annually. In 2002, 1,967 ocean-going vessels operated by more than 100
steamship lines serving U.S. trade with more than 150 countries called
at the Port of New Orleans. The Port's trading partners include: Latin
America (40.5 percent); Asia (28.7 percent); Europe (20 percent);
Africa (9.4 percent) and North America (1.4 percent). During the same
year, 5,448 vessels called at Louisiana's lower Mississippi River
deepwater ports.
The foreign markets of Louisiana's lower Mississippi River ports
are worldwide; however, their primary domestic market is mid-America.
This heartland region currently produces 60 percent of the Nation's
agricultural products, one half of all of its manufactured goods and 90
percent of its machinery and transportation equipment.
The considerable transportation assets of Louisiana's lower
Mississippi River ports enable mid-America's farms and industries to
play a vital role in the international commerce of this Nation. In
2002, the region's ports and port facilities handled 227.5 million tons
of foreign waterborne commerce. Valued at $39.2 billion, this cargo
accounted for 18.1 percent of the Nation's international waterborne
trade and 27 percent of all U.S. exports. Bulk cargo, primarily
consisting of tremendous grain and animal feed exports and petroleum
imports, made up 88.3 percent of this volume. Approximately 50.2
million tons of grain from 17 States, representing 62.4 percent of all
U.S. grain exports, accessed the world market via the 10 grain
elevators and midstream transfer capabilities on the lower Mississippi
River. This same port complex received 91.2 million short tons of
petroleum and petroleum products, 15.9 percent of U.S. waterborne
imports of petroleum products.
In 2002, public and private facilities located within the
jurisdiction of the Board of Commissioners of the Port of New Orleans,
the fifth largest port in the United States, handled a total of 85
million tons of international and domestic cargo. International general
cargo totaled 9.6 million tons. Although statistically dwarfed by bulk
cargo volumes, the movement of general cargo is of special significance
to the local economy because it produces greater benefits. On a per ton
basis, general cargo generates spending within the community more than
three times higher than bulk cargo. Major general cargo commodities
handled at the Port include: iron and steel products; coffee; forest
products; copper; aluminum products; and natural rubber.
Fostering the continued growth of lower Mississippi River ports is
necessary to maintain the competitiveness of our Nation's exports in
the global marketplace and, consequently, the health of the Nation's
economy. Assuring deep-water access to ports has been a priority of our
trading partners around the world. Moreover, an evolving maritime
industry seeking greater economies of scale continues to support
construction of larger vessels with increased draft requirements.
Because it facilitated the provision of deepwater port access, passage
of the Water Resources Development Act of 1986, played a most
significant role in assuring the competitiveness of ports on the lower
Mississippi river and throughout the United States.
By December 1994, the Corps completed dredging of the 45-foot
channel from the Gulf of Mexico to Baton Rouge, LA (Mile 233 AHP).
Mitigation features associated with the first phase of the channel-
deepening project in the vicinity of Southwest Pass of the river,
accomplished in 1988, are nearing completion. We urge the continued
funding for this work in fiscal year 2005 to complete construction of
improvements to the Belle Chasse water treatment plant. This will
complete the approximate $15 million in payments to the State of
Louisiana for construction of a pipeline and pumping stations to
deliver potable fresh water to communities affected by saltwater
intrusion. We further urge that the Corps be provided funding to
proceed with design studies for Phase III, which will allow deepening
of the river to the 55-foot authorized depth.
Along with the Port of New Orleans, the Port of South Louisiana,
the Nation's largest port with 216.4 million tons of foreign and
domestic cargo in 2002, and the Port of Baton Rouge, the Nation's ninth
largest port with 60.6 million tons of foreign and domestic cargo in
2002, and other lower Mississippi River ports are dependent upon timely
and adequate dredging of Southwest Pass to provide deep draft access to
the Gulf of Mexico. The President's Fiscal Year 2005 Budget is
$59,125,000 under O&M General. We, however, strongly recommend that the
Corps be funded $74,400,000 to repair and construct foreshore dikes,
lateral dikes and jetties.
Maintenance of adequate depths and channel widths in the
Mississippi River Gulf Outlet Channel (MRGO) is also of great concern.
This channel provides deep draft access to the Port of New Orleans
container and cold storage facilities and generates significant
economic impact for the region. In 2002, 374 general cargo vessels
calling on the Port's MRGO terminals accounted for 31.5 percent of the
general cargo tonnage handled over public facilities at the Port and 70
percent of Louisiana's containerized cargo.
Because of the MRGO's demonstrated vulnerability to coastal storm
activity, annual channel maintenance dredging and bank stabilization
are essential to assure unimpeded vessel operations. The President's
Fiscal Year 2005 Budget is $13,004,000 under O&M General. We, however,
strongly recommend that the Corps be funded $38,400,000 for maintenance
dredging and bank stabilization.
We recognize the need for the Corps to evaluate the feasibility of
continuing the maintenance of a deep draft channel in the MRGO because
of increased maintenance costs and environmental impacts. We strongly
recommend that the Corps complete the MRGO Reevaluation Study. It is
important to note that although the Port of New Orleans plans to
relocate much of its container terminal capacity to the Mississippi
River, a determination to discontinue maintenance of the MRGO's deep
draft channel must be preceded by completion of the IHNC Lock
replacement project to assure continued deep draft access to the many
businesses serviced by the MRGO.
The Inner Harbor Navigation Canal (IHNC) Lock is a critical link in
the U.S. Inland Waterway System as well as the Gulf Intracoastal
Waterway (GIWW), and provides a connection between the Port of New
Orleans Mississippi River and IHNC terminals. In 1998, the Corps
approved a plan for replacement of this obsolete facility. The Corps
estimates that the lock replacement project will have a cost-benefit
ratio of 2.1 to 1 and will provide $110 million annually in
transportation cost savings. To minimize adverse impacts to adjacent
neighborhoods, the project includes a $37 million Community Impact
Mitigation Program. The President's Fiscal Year 2005 Budget of
$10,000,000 for the IHNC Lock Replacement will pay for engineering and
design work, construction, and the mitigation program, all on a delayed
basis. We, therefore, strongly recommend that the Corps be funded
$24,000,000 to advance engineering and design, levee contracts, and
mitigation measures.
Operation and maintenance of the Mississippi River Outlets at
Venice, LA are essential to providing safe offshore support access to
energy-related industries. In 2002, these channels accommodated cargo
movements exceeding 2.6 million tons. In addition to routine traffic,
shallow draft vessels use Baptiste Colette Bayou as an alternate route
between the MRGO, GIWW and the Mississippi River. The President's
Fiscal Year 2005 Budget is $424,000 under O&M General. We, however,
strongly recommend that the Corps be funded $3,700,000 to perform
critical maintenance dredging.
More than 72.4 million tons of cargo transverse the GIWW in the New
Orleans District annually. The President's Fiscal Year 2005 Budget is
$17,476,000 under O&M General. We, however, strongly recommend that the
Corps be funded $27,300,000 to perform critical maintenance at the
navigation locks.
The President's Fiscal Year 2005 Budget for the Bayou Sorrel Lock,
LA project is $500,000 in GI funds. To assure the efficient flow of
commerce on the GIWW, we urge that the Corps be funded $500,000 to
advance the completion of the pre-engineering design for replacement of
the Bayou Sorrel Lock, Morgan City-to-Port Allen alternate route. We
further recommend that the Corps be funded $1,000,000 in GI funds to
advance the completion of the feasibility phase of the study to replace
Calcasieu Lock on the GIWW.
One additional project warrants consideration. The J. Bennett
Johnston Waterway, Mississippi River to Shreveport, LA Project provides
236 miles of navigation improvements, 225 miles of channel
stabilization works and various recreational facilities. Project
completion will stimulate economic growth along the Red River Basin and
increase cargo flows through the deep draft ports on the lower
Mississippi River. The President's Fiscal Year 2005 Budget is
$4,000,000 (Construction General) and $10,600,000 (O&M General). We,
however, strongly recommend that the Corps be funded $20,000,000
(Construction General) and $18,100,000 (O&M, General) to complete work
already underway.
The need and impetus to reduce the Federal budget is certainly
acknowledged; however, reduced funding on any of the above projects
will result in decreased maintenance levels that will escalate
deterioration and, ultimately, prevent them from functioning at their
full-authorized purpose. Reduction in the serviceability of these
projects will cause severe economic impacts not only to this region,
but also to the Nation as a whole that will far outweigh savings from
reduced maintenance expenditures. Therefore, we reiterate our strong
recommendation that the above projects be funded to their full
capability.
Supporting statements from Mr. Gary P. LaGrange, Executive Director
of the Port of New Orleans; Mr. Joseph Accardo, Jr., Executive Director
of the Port of South Louisiana; Mr. Roger Richard, Executive Director
of the Greater Baton Rouge Port Commission; Mr. Channing Hayden,
President of the Steamship Association of Louisiana; Capt. A. J. Gibbs,
President of the Crescent River Port Pilots Association and Capt.
Michael R. Lorino, Jr., President, Associated Bar Pilots are attached.
Please make these statements along with my statement part of the
record. Supplemental graphics relating to my statement have been
furnished separately for staff background use. Thank you for the
opportunity to comment to the subcommittee on these vital projects.
PRESIDENT'S BUDGET REQUEST & RECOMMENDED FUNDING LEVELS
[In thousands of dollars]
------------------------------------------------------------------------
President's Recommended
Project Budget Request Funding Levels
------------------------------------------------------------------------
Mississippi River Ship Channel Gulf to .............. 537
Baton Rouge, LA (Construction General).
Mississippi River, Baton Rouge to the 59,125 74,400
Gulf, Maintenance Dredging &
Stabilization (O&M General)............
Mississippi River-Gulf Outlet (MR-GO), 13,004 38,400
LA (O&M General).......................
Inner Harbor Navigation Canal Lock, LA 10,000 24,000
(Construction General).................
Mississippi River Outlets at Venice, LA 424 3,700
(O&M General)..........................
Bayou Sorrel Lock, LA (GI Funds)........ 550 550
Gulf Intracoastal Waterway LA & TX (O&M 17,476 27,300
General)...............................
MRGO Reevaluation Study, LA (General 225 225
Investigation).........................
J. Bennett Johnston Waterway 4,000 20,000
(Construction General).................
J. Bennett Johnston Waterway (O&M 10,600 18,100
General)...............................
-------------------------------
TOTAL............................. 115,404 207,212
------------------------------------------------------------------------
______
Prepared Statement of the Port San Luis Harbor District
On December 22, 2003, a magnitude 6.5 earthquake jolted the central
California coast. The epicenter was about 40 miles northeast of the
Port San Luis Harbor federally-owned breakwater. This earthquake caused
significant damage to the structure, which prior to that date, had been
in good condition. Based on its preliminary survey, the U.S. Army Corps
of Engineers (USACE) estimated that repairs will cost $4 million. USACE
owns and is responsible for maintaining this breakwater. President Bush
declared our region a disaster area (DR 1505) on January 13, 2004;
however, FEMA does not provide financial assistance to other Federal
agencies.
HISTORY
Construction of a breakwater at Port San Luis was authorized by
Congress in 1888 and USACE began construction in 1893. The Federal
breakwater was completed in 1913. It was destroyed by severe storms in
1923, and redesigned and rebuilt to the current specifications in 1927.
USACE has repaired damages to the breakwater three times:
--In 1935 after storms from earlier years.
--In 1984 after severe 1982 El Nino storms that also sunk 27 vessels
and destroyed 2 piers.
--In 1992 after 1991 El Nino storms. (Port San Luis Harbor District
was the local sponsor and contributed in-kind services for
maintenance and repair.)
NATIONAL SIGNIFICANCE
A small local government, Port San Luis Harbor District has limited
funds. We have made the breakwater repair project our highest priority
because of its significant regional, State, and national importance for
the following reasons.
--Port San Luis Harbor is the nearest safe harbor of refuge to Point
Conception, the ``Cape Horn of the Pacific.''
--Port San Luis Harbor is a U.S. Customs and Border Protection (CBP),
Port of Entry station. A Port of Entry is a designated place
where a CBP officer is authorized to accept entries of
merchandise, collect duties, and enforce the various provisions
of the customs and navigation laws (19 CFR 101.1).
--Port San Luis Harbor is the closest port to the Diablo Canyon
Nuclear Power Plant. The land entrance to the power plant is at
Port San Luis; our Security personnel are on the frontline
monitoring threats to homeland security. The harbor is used to
receive and transport heavy equipment for the nuclear power
plant. Two 120-ton rotors are scheduled for delivery through
Port San Luis in 2006 and 2008. Calm water is essential to
offload this equipment. There is also the matter of
transferring spent nuclear fuel from the power plant to a
Federal depository sometime in the future. As currently
proposed by the Department of Energy (DOE), this high level
nuclear waste will either be barged out of Port San Luis or
shipped by road. Either way, without the breakwater, access to
the harbor by road or ship will be severely restricted.
--Port San Luis is home to the California Polytechnic State
University's Center for Coastal Marine Science (CCMS) Pier
located on the former Unocal Oil Pier. This Pier Structure is
valued at $23 million. Agencies currently providing funding to
the CCMS are: California Department of Health Services,
National Air Space Administration, National Oceanic and
Atmospheric Administration, National Science Foundation, Office
of Naval Research; Naval Surface Warfare Center, The National
Oceanographic Partnership Program, California Regional Water
Quality Control Board, National Estuary Program/EPA, and Unocal
Corporation.
--In 2000 the California legislature designated Port San Luis Harbor
one of several ports along the California coast as a harbor of
safe refuge. This legislation recognizes the critical role our
harbor plays in affording a safety zone for commercial and
industrial vessels transiting the California coast. U.S. Coast
Guard vessels, scientific research vessels, oil-industry
related vessels and other large vessels stop at the Port,
especially during storms, to find calm water protected by the
Federal breakwater.
--Port San Luis is one of the primary facilities on the central
California coast used by fiber optic cable ships to install and
repair transpacific fiber optic cables. Several cable landings
are in waters near the port and are serviced by large cable-
laying ships. This international communication support facility
(harbor) is critical to the national security and global
commerce. A safe harbor to resupply and moor cable-laying ships
and associated watercraft is critical.
--The Port is home to 240 commercial and recreational fishing vessels
that contribute to the economy and job markets in central
California. The supporting landside businesses are dependent on
the local fleet to generate jobs and revenue producing goods
and services--including ships chandleries, vessel haul-out and
repair facilities, fueling stations, seafood buying stations,
and ancillary services.
For these reasons, we request a congressional ``add'' of $4 million
to the fiscal year 2005 Budget to repair the earthquake damage to the
Federal breakwater.
______
Prepared Statement of the Coosa-Alabama River Improvement Association,
Inc.
Mr. Chairman and distinguished committee members, I request the
President's fiscal year 2005 Budget be adjusted to reflect
appropriations to U.S. Army Corps of Engineers civil works projects on
the Alabama River as follows:
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Alabama-Coosa.................... $4,549,000 (add of $4,000,000).
Millers Ferry L&D................ 4,863,000 (add of $320,000).
Robert F. Henry L&D.............. 4,890,000 (add of $300,000).
------------------------------------------------------------------------
I make these requests as President of an Association formed in 1890
to promote commercial navigation on the Coosa and Alabama Rivers. Our
members are the cities, counties, businesses, and individuals from
Rome, Georgia to Mobile, Alabama. We value our inland waterways and are
very distressed that the President's proposed cuts on our projects are
being done with no thought as to consequences to the citizens of this
river basin.
Alabama-Coosa.--The President's Budget proposal for fiscal year
2005 eliminates funding for dredging the Alabama River navigation
channel as well as for maintaining the lock at Claiborne Dam. Not
funding these projects will close the Alabama River navigation channel,
sever the only waterway link between the capital city of Montgomery and
the Port of Mobile, and isolate three-fourths of the river basin from
the Gulf of Mexico.
Severing the channel will have major negative economic effects in
central Alabama, an area bustling with expansion of new industries and
subsidiaries. Hyundai Motor Company located its first American-based
automobile manufacturing plant, a $1 billion investment, in the
Montgomery area because of the available infrastructure, including the
waterway. Hyundai has plans this calendar year and in 2005 to move
several pieces of outsized equipment, weighing up to 125,000 pounds
each and part of a $20 million stamping press, to its plant via the
Alabama River, the only transportation artery capable of safely moving
equipment of that size. The channel is essential to Hyundai operations.
The Gulf Logistics and Projects Company of Houston, Texas, which
will be a major transporter of raw materials to Hyundai, indicates that
closing the navigation channel will cause ``painful economic distress
if the barge delivery system is denied to foreign manufactures (sic)
trying to relocate their factories into the United States, near
Montgomery, Alabama . . . Without the Alabama River, quantity raw
materials movements may become too expensive and production be
curtailed.'' This is a strong statement from a Korean firm planning to
establish an office in Mobile just to support Hyundai, and I believe is
a compelling argument to keep the navigation channel fully operational.
Another major industry that will be hard hit is Alabama River Pulp
Company of Perdue Hill, Alabama, a $1.4 billion investment and one of
the largest paper manufacturing plants in the world. Alabama River Pulp
receives fuel oil via barge. If the channel closes, that fuel oil will
have to be trucked in at an additional annual cost of $1.5 million
while putting 2500 additional trucks of fuel oil on Alabama's highways.
Why would we want to do that?
Closing Claiborne Lock has other consequences for ARP, which is
located only about three miles downstream of Claiborne Dam and is
heavily reliant on predictable and controlled flows and river levels.
Not funding the lock operation means the personnel operating that lock
and who also control the dam flow control gates would be cut,
imperiling the flow control procedures on which ARP relies to provide
cooling water to its plant. ARP strongly objects to any cuts that
jeopardize that flow management.
Closing the channel is a direct threat to some sand and gravel
companies. Two companies that currently move approximately 100,000 tons
on the Alabama annually have the resources to move over 300,000 tons,
but are stymied because reduced dredging the past 2 years has allowed
the river to silt in, causing severe navigation safety problems. Couch
Ready Mix USA, which has a $5 million investment on the river near
Montgomery, has stated in writing that, if the channel were fully
maintained, it alone has an annual capacity of over 300,000 tons to
move on the river to the Gulf of Mexico.
One of the major benefits of barge transportation is its
contribution to traffic and pollution safety. A May 2001 Latin American
Trade and Transportation Study, sponsored by the Southeastern
Transportation Alliance, predicts that imports into the Gulf of Mexico
from Latin America will triple by 2020. It is reasonable to assume that
the Port of Mobile will get its fair share of that increased traffic,
much of which will be containers. Those commodities will have to move
out of Mobile by rail, road, or waterway. Rail is limited in its
capacity to absorb these increases. Truck congestion on the highway
system leading out of Mobile will be intolerable, as should be the
additional pollution. (Per ton-mile, barges emit only 10 percent of
emissions produced by trucks and 25 percent of that produced by rail.)
It makes sense, from economic, environmental, and safety views, to move
some of that cargo, including containers, onto the waterways, including
the Alabama River, an option not available if the waterway is closed.
The proposal to close Claiborne Lock alone has dire consequences
beyond the effect on commercial navigation. The Alabama River is the
only waterway connecting the capital city of Montgomery to the Gulf of
Mexico. Severing the channel will stop ever-increasing recreational
traffic from Montgomery to the Gulf. Eighty percent of the vessels
locking through Claiborne are recreational craft. There is a strong
move within the basin to develop a system of marinas to support
recreational vessels from bass boats to 80-foot cruisers. Wilcox
County, one of the least developed and highest unemployment (16.4
percent) counties in the State, is planning to construct a full-service
marina and lodging facility on the Alabama to attract and serve
recreational craft of all sizes, a facility that will provide jobs
Closing the navigation channel will kill that project as well as well
as projected revenue for this depressed area.
Millers Ferry Lock and Dam and Robert F. Henry Lock and Dam.--The
President's Budget also eliminates funding to maintain several of the
Corps' recreational areas along the Alabama River. Over 3 million
people visited these sites last year and spent over $60 million within
30 miles of the facilities, 66 percent of which was a direct input into
the local economy. With proposed cuts in maintenance of $320,000 at
Millers Ferry and $300,000 at Robert F. Henry, the Mobile District will
be forced to scale back maintenance at all sites, close three of the
six campgrounds 6 months out of the year, reassign park rangers, and
drop contracted maintenance.
Without maintenance, these facilities will deteriorate.
To``save''$620,000, the administration is willing to sacrifice a strong
economic multiplier in an economically-depressed area of the country.
This kind of ``saving'' doesn't make economic sense.
Attached is a list of businesses, individuals, and local and State
government agencies expressing concern about these proposed cuts in the
Alabama River civil works projects. To a person, these citizens view
the proposed cuts as ``devastating for industrial development in the
State of Alabama.'' Any ``savings'' from the proposed cuts will be a
Pyrrhic victory, dwarfed by staggering losses to the State of Alabama.
In summary, the President's Budget proposal for fiscal year 2005
will be a major economic blow to Central Alabama. For the appearance of
``savings'', the administration is willing to eliminate an important
transportation asset for the State of Alabama and put in jeopardy
businesses sorely needed in an economically depressed area with
unemployment up to 15 percent. I request funding be placed into the
fiscal year 2005 Energy and Water Appropriations Act to allow the Corps
of Engineers to maintain the authorized navigation channel on the
Alabama River and to keep the recreation areas open year around for the
benefit of our citizens.
LETTERS SUPPORTING CARIA STATEMENT--MARCH, 2004
------------------------------------------------------------------------
------------------------------------------------------------------------
The Honorable Otha Lee Biggs.... Monroe County Monroeville, AL.
Commission.
The Honorable Jim Byard......... Mayor, City of Prattville, AL.
Prattville.
Mr. F. Slaton Crawford.......... Dir, Wilcox County Camden, AL.
C of C.
Mr. Elton N. Dean............... Montgomery County Montgomery, AL.
Commission.
Mr. Ken Fairly.................. Alabama River Pulp Monroeville, AL.
Company.
The Honorable Anne Farish....... Mayor, City of Monroeville, AL.
Monroeville.
Mr. Trey Glenn.................. Alabama Office of Montgomery, AL.
Water Resources.
The Honorable Sue Glidewell..... Mayor, City of Rainbow City, AL.
Rainbow City.
Mr. Lynn A. Gowan............... Montgomery County Montgomery, AL.
Commission.
Mr. Robert F. Henry, Jr......... Robert F. Henry Montgomery, AL.
Tile Co..
Mr. Slade Hooks, Jr............. Waterways Towing & Mobile, AL.
Offshore Svcs.
The Honorable John W. Jones, Jr. Dallas County Selma, AL.
Probate Judge.
Mr. Wm. F. Joseph, Jr........... Montgomery County Montgomery, AL.
Commission.
Captain Jeong Dae Kim........... Gulf Logistics & Houston, TX.
Projects.
Mr. James Lyons................. Alabama State Mobile, AL.
Docks.
Ms. Ellen McNair................ Montgomery Area C Montgomery, AL.
of C.
Mr. Donald L. Mims.............. Montgomery County Montgomery, AL.
Commission.
The Honorable James Perkins..... Mayor, City of Selma, AL.
Selma.
Mr. Phillip A. Sanguinetti...... The Anniston Star. Anniston, AL.
Mr. Steven D. Shaw.............. Couch Ready-Mix Dothan, AL.
USA.
Ms. Sandy Smith................. Monroeville Area C Monroeville, AL.
of C.
Mr. J. Craig Stepan............. Warrior & Gulf Mobile, AL.
Navigation.
Mrs. Anne Henry Tidmore......... .................. Montgomery, AL.
Mr. Wayne Vardaman.............. Selma & Dallas Selma, AL.
County Cntr. for
Co..
Mr. Jiles Williams, Jr.......... Montgomery County Montgomery, AL.
Commission.
Mr. Sam H. Wingard.............. Montgomery County Montgomery, AL.
Commission.
------------------------------------------------------------------------
______
Prepared Statement of the Board of Mississippi Levee Commissioners
Mr. Chairman and members of the committee, this statement is
prepared by James E. Wanamaker, Chief Engineer for the Board of
Mississippi Levee Commissioners, Greenville, Mississippi, and submitted
on behalf of the Board and the citizens of the Mississippi Levee
District. The Board of Mississippi Levee Commissioners is comprised of
seven elected commissioners representing the counties of Bolivar,
Issaquena, Sharkey, Washington, and parts of Humphreys and Warren
counties in the Lower Yazoo Basin in Mississippi. The Board of
Mississippi Levee Commissioners is charged with the responsibility of
providing protection to the Mississippi Delta from flooding of the
Mississippi River and maintaining major drainage outlets for removing
the flood waters from the area. These responsibilities are carried out
by providing the local sponsor requirements for the Congressionally
authorized projects in the Mississippi Levee District.
It is apparent that the administration loses sight of the fact that
the Mississippi River & Tributaries Project provides protection to the
Lower Mississippi Valley from flood waters generated across 41 percent
of the Continental United States. These flood waters flow from 31
States and 2 provinces of Canada and must pass through the Lower
Mississippi Valley on its way to the Gulf of Mexico. We will remind you
that the Mississippi River & Tributaries Project is one of, if not the
most cost effective project ever undertaken by the United States. The
foresight used by the Congress and their authorization of the many
features of this project is exemplary.
The many projects that are part of the Mississippi River &
Tributaries Project not only provides protection from flooding in the
area, but the award of construction contracts throughout the Valley
provides assistance to the overall economy to this area that is also
encompassed by the Delta Regional Authority. The employment of the
local workforce and purchases from local venders by the contractors
help stabilize the economy in one of the most impoverished areas of our
country. The Mississippi Valley Flood Control Association will be
submitting a general statement in support of an appropriation of $450
million for fiscal year 2005 for the Mississippi River & Tributaries
Project. This is the minimum amount that we consider necessary to allow
for an orderly completion for the remaining work in the Valley and to
provide for the operation and maintenance as required to prevent
further deterioration of the completed flood control and navigation
work.
Thanks to the additional funding over and above the
administration's budget that has been provided by the Congress over the
last several years, work on the Mainline Mississippi River Levee
Enlargement Project is continuing. This funding has resulted in having
7.6 miles of work completed and returned to the Levee Board for
maintenance, and 24.4 miles are currently under contract. Right of way
is being acquired on the next 3.4 miles with the contract being
scheduled for award in September of this year. This will result in over
half of the deficient 69 miles in our District being completed or under
contract. We are requesting $54.8 million for construction on the
Mainline Mississippi River Levees in the Mississippi Valley Division
which will allow the Vicksburg and Memphis districts to keep existing
contracts on schedule and award contracts to avoid any unnecessary
delays in completing this vital project. We are all well aware that the
Valley some day will have to endure a Project Flood, we just don't know
when. We must be prepared.
Three projects in Mississippi are on the list included in the
administration's budget targeted for cancellation by the Office of
Management and Budget. These are all projects authorized and funded so
wisely by the Congress. The administration's proposal includes language
to return unobligated funds to the Treasury. This action is especially
difficult to understand during a time when our Nation needs an economic
boost. All of these projects are encompassed in the footprint of the
Delta Regional Authority, an area recognized by the Congress as
requiring special economic assistance to keep pace with the rest of our
great Nation. We can not lose sight of the fact that all of these
projects are required to return more than a dollar in benefits for each
dollar spent. No project authorized and funded by the Congress should
be indiscriminately terminated without the benefit of having the
opportunity to complete with the study process and subsequent
construction after complying with the Corps Policy and Guidelines.
One of the projects on this list will provide benefits to parts of
six counties in the south part of the Mississippi Delta who continue to
patiently wait for the completion of the Yazoo Backwater Project. This
work authorized by the Congress to provide protection from higher
stages on the Mississippi River resulting from changes made to the
Mississippi River and Tributaries Project, must safely pass flood water
from 41 percent of the continental United States. Also, the same change
in the flow line of the Mississippi River that is requiring the
Enlargement of the Mainline Mississippi River Levee will also increase
stages in the South Delta. The Corps and EPA have made an extraordinary
effort to resolve differences in wetland impacts resulting from the
construction of the Corps recommended plan for this project. This plan
has received the support of all six county Boards of Supervisors in the
project area. We are requesting this project be funded by the Congress
in the amount of $12 million. These funds will allow the Corps to begin
acquisition of the reforestation easements and initiate the award of
the pump supply contract.
Another project on the administration's hit list is the Big
Sunflower River Maintenance Project. The first item of work has been
completed and right-of-way has been acquired for the next item of work.
Our request for $2.139 million will allow right-of-way acquisition to
continue and for the award of the first dredging contract. The
residents in South Washington County continue to suffer damages from
flooding while they continue to wait for this maintenance project to
reach their area.
The third project in Mississippi targeted by the administration for
cancellation is the Delta Headwaters Project, formerly the
Demonstration Erosion Control Project. Work carried out as part of this
project has proven effective in reducing sediments to downstream
channels. To discontinue this project will only increase sediment in
downstream channels, reducing the level of protection to the citizens
of the Delta and increasing required maintenance. We are requesting $25
million to continue this project.
The Upper Yazoo Project is critical to the Delta. The Corps of
Engineers operates 4 major flood control reservoirs on the bluff hills
overlooking the Mississippi Delta. These reservoirs hold back heavy
spring rains and must have adequate channel capacity to pass this
excess runoff during the summer and fall months. Without completion of
the Upper Yazoo Project, the Corps is forced to hold flood water from
the previous spring, thereby reducing the ability to provide protection
from the current year's flood water. The administration's budget of
$3.85 million will require the Vicksburg District to suspend
construction of three ongoing contracts. We urge the Congress to
provide additional funds to increase the budget amount to $20 million
allowing construction to continue and the award of additional channel
items that will extend construction upstream to Glendora, Mississippi.
Maintenance of completed works can not be over looked. The four
flood control reservoirs over looking the Delta have been in place for
50 years and have functioned as designed. Required maintenance must be
performed to avoid any possibility of failure during a flood event. The
recent dam failure in south Mississippi less than 2 weeks ago can only
magnify the need to adequately maintain our infrastructure. We are
asking for $12.9 million for Arkabutla Lake, $19.322 million for Sardis
Lake, $13.679 million for Enid Lake, and $10.101 million for Grenada
Lake. Additional funding will be used to replace rip rap at all 4
reservoirs, repair the spillways at Arkabutla and Sardis, and upgrade
other infrastructure around all the lakes.
We are requesting $14.915 million for Maintenance of the Mainline
Mississippi River Levees which will provide for repair of levee slides,
slope repair, and repair of the gravel maintenance roadway which is so
vital to access during high water.
Other Mississippi projects that require additional funding to keep
on schedule include:
[In thousands of dollars]
------------------------------------------------------------------------
Project Amount
------------------------------------------------------------------------
Big Sunflower River (Upper Steele Bayou)....................... 5,000
Yazoo Basin Reformulation Unit................................. 450
Yazoo Basin Main Stem.......................................... 25
Yazoo Backwater (Greentree Reservoirs)......................... 300
------------------------------------------------------------------------
I have reviewed a great deal of information regarding the needs of
providing flood protection to our area. Another major feature of the
Mississippi River & Tributaries Project relates to navigation interest
along the Mississippi River. Several of our ports have been informed
that the President's budget does not include funding for Critical
Harbor Dredging necessary to keep these harbors opened for navigation.
Our port commissioners have been notified that lack of dredging will
cause these ports to be shut down and be a hazard to navigation. This
will impact the movement of over 4.5 million tons of cargo being
shipped on our waterways annually from these ports. This equates to an
additional 180,000 truck loads of products on our highways. It is
imperative that funding be made available for Critical Harbor Dredging
to allow continued operation of these facilities, which are key
features to the economic growth of the region.
As members of the Congress representing the citizens of our Nation
who live with the Mississippi River everyday, you clearly understand
both the benefits provided by this resource, and the destructive force
that must be controlled during a flood. On behalf of the Mississippi
Levee Board, I can not express enough, our appreciation for your
efforts in providing adequate funding over the last several years that
has allowed construction to continue on our much needed projects.
______
Prepared Statement of the Blue Valley Association
The Blue Valley Association has 164 members representing thousands
of employees in the Blue Valley industrial area. These high paying jobs
have been put at risk from past flooding in the valley. Since 1920 the
association has been dedicated to improving our industrial area and
maintaining jobs. Continued funding of the Blue River Project is
essential to this goal.
The project, which began in 1983, is located along the Blue River
from its mouth at the Missouri River continuing approximately 12 miles
upstream to 63rd Street, running through an industrial area of Kansas
City, which is a long-standing business district employing 12,000
people, and containing many residential neighborhoods.
The progress made to date has provided significant benefits to
those businesses downstream. But much work remains. Delays in funding
will increase the risk of flooding as rapid development of the
watershed in the State of Kansas increases the run off. Increased
flooding has forced many businesses to abandon the valley and relocate
to new ``Greenfields''. The project's completion date has already been
delayed from 1998 to 2008.
This is an economically sound project with a benefit to cost ratio
of 3 to 1. Therefore, we urge you to provide the $8,000,000 in funding
needed to continue this project.
______
Prepared Statement of the Mo-Ark Association
Mr. Chairman, the Mo-Ark Association welcomes this opportunity to
provide written testimony to the Subcommittee on Energy and Water
Development regarding appropriations for fiscal year 2005 and requests
that this written testimony be included in the formal hearing record.
The Mo-Ark Association is a long-standing organization that
promotes beneficial use of water and land related resources in the
Missouri and portions of the Arkansas River Basins, primarily within
the States of Kansas and Missouri. We have advocated for flood damage
reduction projects in our region since severe flooding ravaged the
Midwest in 1951.
The Mo-Ark Association requests the following General Investigation
and Construction General Funding for Corps of Engineers' Water Resource
projects underway in our region. Our fiscal year 2005 Federal
appropriations request for these projects is presented in the following
table, together with the activity to be performed with those funds by
the Corps of Engineers. The projects with the highest priority are
shown in cap type.
------------------------------------------------------------------------
Fiscal Year
Project 2005 Activity
Request
------------------------------------------------------------------------
BLUE RIVER CHANNEL................. $8,000,000 CONTINUE CONSTRUCTION.
TURKEY CREEK BASIN................. 2,500,000 CONTINUE CONSTRUCTION.
Brush Creek Basin.................. 200,000 Complete Study Effort.
BLUE RIVER BASIN................... 4,000,000 CONTINUE CONSTRUCTION.
SWOPE PARK INDUSTRIAL AREA......... 600,000 COMPLETE DESIGN.
Kansas Citys (7 Levees)............ 650,000 Continue Feasibility
Study.
Upper Turkey Creek................. 500,000 Continue Feasibility.
St. Joseph Levee................... 250,000 Complete Feasibility.
Topeka Levee....................... 100,000 Complete Feasibility.
Jefferson City Levee L-142......... 6,200,000 Begin Construction.
RIVERSIDE LEVEE L-385.............. 12,000,000 COMPLETE CONSTRUCTION.
Missouri River Mitigation.......... 20,000,000 Design & Construction.
Missouri River Bank Stabilization & 5,000,000 Rehabilitation &
Navigation Support. Construction.
MISSOURI RIVER CHANNEL DEGRADATION 500,000 BEGIN STUDY.
STUDY.
------------------------------------------------------------------------
Mo-Ark also requests that the several key programs which provide
Federal assistance for water related projects continue to be made
available to local communities and that they are supported with annual
appropriations. Among these: Small Flood Control Authority, Section 205
of the 1948 Flood Control Act as amended; Flood Plain Management
Services, Section 206 of the 1960 Flood Control Act; Planning
Assistance to States, Public Law 93-251; and Emergency Bank
Stabilization, Section 14 of the 1946 Flood Control Act as amended.
Communities in our region have made use of these programs in the past
and will continue to seek out beneficial uses for them in the future.
______
Prepared Statement of the Kansas City Industrial Council
The Kansas City Industrial Council (KCIC) supports the U.S. Army
Corps of Engineers and local sponsor, Kansas City, Missouri, in the
completion of the Feasibility Report on the Swope Park Industrial Area.
We encourage the approval of this report as urgently as possible.
The safety of many lives is directly affected by the Blue River as
experienced in the May 15, 1990, flooding in the Swope Park Industrial
Park. The Feasibility Report accurately defines this unique area by
having only one way to enter and exit, land being surrounded by river
and railroad tracks. This report also accurately depicts that the
business owners and managers of Swope Park Industrial Park have
continued to maintain property and employment while keeping flood
protection the number one priority for employee safety.
______
Prepared Statement of DECO Companies, Inc.
DECO Companies, Inc. has 90 employees currently in the Blue River
Valley. Our affiliate companies have ownership of over a million square
feet of industrial space leased to small ``Started Businesses''. To
keep these businesses, valuable property and employees safe from floods
continued funding of the Blue River project is essential.
The project, which began in 1983, is located along the Blue River
from its mouth at the Missouri River continuing approximately 12 miles
upstream to 63rd Street, running through an industrial area of Kansas
City, which is a long-standing business district employing 12,000
people, and containing many residential neighborhoods.
The progress made to date has provided significant benefits to
those businesses downstream. But much work remains. Delays in funding
will increase the risk of flooding as rapid development of the
watershed in the State of Kansas increases the run off. Increased
flooding has forced many businesses to abandon the valley and relocate
to new ``Greenfields''. The project's completion date has already been
delayed from 1998 to 2008.
This is an economically sound project with a benefit to cost ratio
of 3 to 1. Therefore, we urge you to provide the $8,000,000 in funding
needed to continue this project.
______
Prepared Statement of Vance Brothers Inc.
On behalf of the 200 employees of Vance Brothers Inc., I am
requesting that you provide the funding necessary to continue the Blue
River Channel Project.
In 1993 and again in 1995 the water was so high that we had to
initiate our Emergency Flood Plan. Besides costing thousands of
dollars, it put employees out of work for several days.
Because of the residential and commercial development of the upper
Blue River basin in the State of Kansas, along with their paved parking
lots and new storm sewer systems, we had up to 8 feet of water in our
plant in 1990.
Increased flooding has forced many businesses to abandon the
valley. Delays in funding will increase the risk of flooding as rapid
development of the watershed in the State of Kansas increases the run
off. The project's completion date has already been delayed from 1998
to 2008.
This project will benefit the workers in our area creating good
paying jobs.
This is an economically sound project with a benefit to cost ratio
of 3 to 1. Therefore, we urge you to provide the $8,000,000 in funding
needed to continue this project.
______
Prepared Statement of Warehouse One, Inc.
On behalf of the 55 associates of Warehouse One, Inc., and the
thousands of other Kansas City workers and residents in the Blue
Valley, I am requesting that you provide the $8,000,000 in funding
necessary to continue the Blue River Channel Project.
The Blue River flows through the historical and industrial heart of
Kansas City with its lower stretch in the Enterprise Zone. Increased
flooding from upstream development has forced many businesses to
abandon the valley at a cost of thousands of jobs and lowered property
values. The Army Corps of Engineers' revised completion date has now
been extended from 1998 to 2008. This delay will only cause more
companies and residents to leave our neighborhoods.
In areas where the project has been completed, redevelopment is
significant. Hundreds of millions of dollars of public and private
money have been invested to reclaim abandoned properties providing
jobs, homes, and tax dollars.
The Blue River Channel Project, with a benefit to cost ratio of 3
to 1 has already proven to be economically sound. I urge you to provide
the $8,000,000 in funding to continue the project.
______
Prepared Statement of the Bi-State Turkey Creek Association
We received a NEW START APPROPRIATION in the Fiscal Year 2004
Appropriations Bill and construction is underway.
We MUST have funds to continue this project which affects hundreds
of privately held company and thousands of employees.
Major Interstate Highways 35 and 635 flood along with U.S. Highways
69 and 169. The Main Lines of the Burlington-Northern and Santa-Fe
railroads flood.
We request that $2,500,000 be appropriated for fiscal year 2005 for
continued construction.
______
Prepared Statement of the Livers Bronze Co.
Livers Bronze Co. moved into Swope Industrial in 1999. We purchased
two buildings that house our lifetime investments and the futures for
many families. Coming into this we needed FEMA flood insurance but also
knew there was a project under way to give us flood protection which at
some point would eliminate this costly insurance. We have an active
association and go to regular meetings with the U.S. Corps of Engineers
and our sponsor, Kansas City, MO. At this time we have completed both
Reconnaissance and Feasibility studies.
The Blue River has a history of flooding in Kansas City. Downstream
of 63rd Street the work has nearly been finished; the Bannister project
at 95th Street has completed and the Dodson project at 85th Street has
just started. This leaves the Swope project at 75th Street in between,
not started and could possibly put us at higher risk during high water
events. The Swope project is truly the last piece of the Blue River
puzzle with regard to the flood protection of industrial sites along
the Blue in Kansas City.
We request that the $600,000 be appropriated to complete the design
phase of the Blue River, Swope Industrial project. The ongoing expenses
and threats of future floods in our park are detrimental to the
different industries in our park. Without your help, our businesses and
the lives of our employees and associates will always have the threats
of flooding in our future. Please help us complete this last segment of
the Blue River project.
______
Prepared Statement of The Salvajor Company
The Swope Park Industrial Association member companies have
collectively worked for flood protection for many years, even prior to
our flooding in 1990. We have met many times with our sponsor, Kansas
City, MO, and the U.S. Army Corps of Engineers, and have completed both
Reconnaissance and Feasibility studies.
Our location is separate of the Blue River Channel project that is
from the mouth of the Blue River upstream to 63rd Street. As you know
there are two other projects on the Blue River, the completed Bannister
project at 95th Street and the newly under construction, Dodson project
at 85th Street. Our location on 75th Street is between Bannister/Dodson
and Blue River Channel projects. This location, between two active
projects, puts us at higher risk than any other industrial area on the
Blue River during high water events. Our project, when constructed,
will complete the protection of industrial sites on the Blue River--the
last piece of the puzzle.
Even though we continue to work for the protection of our employees
and the preservation of our business, we are now mostly concerned about
continued funding of our project. We are a small project, and the only
industrial area on the Blue River with the risk of not realizing
construction since our project is still in design phase, a phase that
is in most risk of not being funded for the upcoming year.
Without funding, Swope Park Industrial area companies will
definitely lose investments in property and jobs that were created here
long before we were designated flood plains. We realize we are only one
of many projects that need funding, but our project is unique in our
location, our size, and we are the key to completion of a great program
that has already shown positive results in retaining business and
reducing blight in the completed areas. We request that the $600,000 be
appropriated to complete the design phase of the Blue River; Swope Park
Industrial project.
______
Prepared Statement of the Clay and Bailey Manufacturing Company
On behalf of the 60 employees of Clay & Bailey Manufacturing
Company, I am requesting that you provide the $8,000,000 in funding
necessary to continue the Blue River Channel Project.
Our company, like many others in the valley, were ``high & dry'' in
the record floods of 1961 and 1977. However, because of the residential
and commercial development of the upper Blue River basin in the State
of Kansas, along with their paved parking lots and new storm sewer
systems, we had 5 feet of water in our plant in 1990. The $1.5 million
in damages almost closed us down.
The rainfall in 1990 was considerably less than in 1977, yet the
extent of the flooding throughout the lower valley was much more
severe. In 1993 and again in 1995 the water was so high that we had to
initiate our Emergency Flood Plan. This involves shutting down, raising
motors and moving material. Besides costing thousands of dollars, it
put employees out of work for several days.
The Blue River flows through the industrial heart of Kansas City
with most of the lower stretch in the Enterprise Zone. Increased
flooding over the years has forced many industries to abandon the
valley. The Army Corps of Engineers' new estimated completion date has
been extended from 1998 to 2008. The delay will cause more companies to
move out of the valley either because they see the risk as unacceptable
or they are washed away by a flood that should have been prevented.
Likewise redevelopment of abandoned properties continues to be delayed.
Meanwhile, remediation and redevelopment in the areas where the
project is complete has been tremendous. Hundreds of millions of
dollars of private money has already been expended to recover the
abandoned industrial properties providing jobs and tax dollars.
This is an economically sound project with a benefit to cost ratio
of 3 to 1. Again we urge you to provide the $8,000,000 in funding to
continue the project.
______
Prepared Statement of the Board of Levee Commissioners For the Yazoo-
Mississippi Delta
This statement, made on behalf of the citizens represented by the
Yazoo-Mississippi Delta Levee Board (YMD), is not only in support of
the funding requests contained herein, but also for the general funding
testimony offered for Fiscal 2005 by the Mississippi Valley Flood
Control Association. I would ask that this statement be made part of
the record.
The Mississippi Valley Flood Control Association is requesting of
Congress funding in the amount of $450 million for the Mississippi
River and Tributaries Project (MR&T), an amount based on the
association's professional assessment of the capabilities of the U.S.
Army Corps of Engineers, Mississippi Valley Division.
While we recognize that this is a time when the Federal budget is
being inordinately strained by both a slowly recovering economy, the
continued hostilities in Iraq and the ongoing war against terrorism, we
also recognize both the Nation's economy and the lives and livelihoods
of its citizen's rests upon the continued provision of adequate flood
control for its heartland.
In the aftermath of the devastating and historic Great Flood of
1927, the Flood Control Act of 1928 established as national priority,
the development of a comprehensive flood control plan to reduce the
likelihood of such a horrific events ever happening again in the Lower
Mississippi Valley. As we look back, the MR&T has returned $284180
billion in benefits for the $11.90 billion invested--truly an American
public works success story.
However, much work remains uncompleted, and if the MR&T success
story is to continue, Congress must give it a higher priority than has
the administration in its budget. For the totality of the MR&T, the
president proposes only $270 million, an amount which we find
critically austere.
The YMD Levee Board urges the Congress to provide funding at a
level which will allow the MR&T to continue at a pace commensurate with
the national priority to protect people and property from the ravages
of flooding. We urge Congress to provide funding in the amount of $450
million so that this national promise can be kept.
A line item chart reflecting existing and needed funding levels for
MR&T projects in the Lower Mississippi Valley follows, with special
emphasis herein given to those projects most critical to our levee
district:
Mississippi River Levees.--Life as we know it simply could not
continue in the Lower Mississippi Valley without its levee system. The
need to keep our levee system strong and secure must be given a top
priority. The administration's budget earmarks only $7.665 million to
maintaining our levees and we ask Congress to allocate $14.915 million
for this critical need.
Upper Yazoo Projects (UYP).--The top priority for the YMD Levee
Board, the Upper Yazoo Projects, was conceived in 1936. The overall
project includes a system of flood control reservoirs which discharge
into a system of channels and levees intended to safely convey
headwater from the hills into the Mississippi River. Perhaps the least
contentious major flood control project in the country, the UYP is
progressing smoothly, with virtually no public opposition. However, the
proposed budget funds this project at only $3.850 million and we urge
Congress to fully fund at the capability of the Corps of Engineers--$20
million--so that it might progress and the following be accomplished:
--Complete Channel Item 5B;
--Complete Item 7A and 7B structures;
--Purchase project and mitigation lands;
--Continue Channel Items 6A and 6B and;
--Initiate bridge relocation.
Delta Headwaters Project.--Formerly known as the Demonstration
Erosion Control Project, this is a proven concept which works, and
should continue, yet is unfunded and would be phased out. We urge
Congress not to allow this. Vast amounts of sediments which would be
controlled by this project would in its absence end up within the
Coldwater/Tallahatchie/Yazoo river system. We urge Congress to
appropriate $25 million for this badly needed effort.
Yazoo Headwater Flood Control Reservoirs.--Four major flood control
reservoirs exist in Mississippi to control the release of headwater
into the Yazoo River system--Sardis, Arkabutla, Enid and Grenada. These
have prevented significant flood damages by allowing excess waters to
be released at controlled rates. All four are aging and require both
routine maintenance and upgrading and we ask that the Congress do so at
the following levels:
--Arkabutla--$12.9 million;
--Sardis--$19.322 million;
--Enid--$13.679 million;
--Grenada--$10.101 million.
Big Sunflower River.--We ask that Congress fund at the level of $5
million so that Item 66 A/B at Swan Lake Levee might be completed and
that, the purchase of mitigation lands mitigation and reforestation
might continue.
Big Sunflower River Maintenance Project.--We request Congress fund
at the level of $2.139 million so that Items 2 and 4 might be initiated
and design might continue.
Yazoo Backwater Pumps.--Of critical concern to South Delta
residents and our sister levee board, the Mississippi Levee Board; this
project would alleviate backwater flooding. We support that effort and
join in requesting funding at a level of $12 million so that planning
and acquisition may continue and a pump supply contract might be
initiated.
Yazoo Backwater.--We ask Congress to appropriate $300,000 to
continue pump operations at Greentree reservoirs and to appropriate
$926,000 to rehabilitate bulkheads and provide environmental
mitigation.
Main Stem.--We seek $3.966 million to rehabilitate and replace
drainage structures and we request $25,000 to monitor Sheley Bridge
bank stabilization.
Coldwater Basin.--We ask $750,000 so that a feasibility study might
continue.
Quiver River.--We seek $100,000 to continue a reconnaissance phase
of this effort.
Reformulation Unit.--We request $450,000 to complete reform of the
backwater unit and continue work in the tributaries phase of this
project.
Finally, in an overall statement on proposed Peer Review Policy
within the Corps of Engineers, we would prefer that any such reviews be
mandated by Congress to take place only during the study phase of
projects and not when actual work has begun.
______
Prepared Statement of the Green Brook Flood Control Commission
Mr. Chairman and members of the subcommittee, my name is Vernon A.
Noble, and I am the Chairman of the Green Brook Flood Control
Commission. I submit this testimony in support of the Raritan River
Basin--Green Brook Sub-Basin project, which we request be budgeted in
fiscal year 2005 for $10,000,000 in Construction General funds.
As you know from our previous testimony, a tremendous flood took
place in September of 1999. Extremely heavy rainfall occurred,
concentrated in the upper part of Raritan River Basin. As a result, the
Borough of Bound Brook, New Jersey, located at the confluence of the
Green Brook with the Raritan River, suffered catastrophic flooding.
Water levels in the Raritan River and the lower Green Brook reached
record levels.
There were tremendous monetary damages, and extensive and tragic
human suffering.
The flooding of September 1999 is not the first bad flood to have
struck this area. Records show that major floods have occurred here as
far back as 1903.
Disastrous flooding took place in the Green Brook Basin in the late
summer of 1971. That flood caused $304,000,000 in damages (April 1996
price level) and disrupted the lives of thousands of persons.
In the late summer of 1973, another very severe storm struck the
area, and again, thousands of persons were displaced from their homes.
$482,000,000 damages was done (April 1996 price level) and six persons
lost their lives.
The first actual construction of the Project began in late fiscal
year 2001, in which an old bridge over the Green Brook, connecting the
Boroughs of Bound Brook and Middlesex, was replaced with a new and
higher bridge. That work is now complete.
The second construction contract, known as Segment T, began in
2002, and is now nearing completion. This work will complete the
protection for the eastern portion of Bound Brook Borough.
The next following segment of the Project is planned for
construction to begin this year. This next construction, known as
Segment U, will begin the protection for the western portion of Bound
Brook Borough.
When Congress authorized the Project for construction, it did so
only for the lower and Stony Brook portions. This was the result of the
objections raised in 1997 by the Municipality of Berkeley Heights,
located in the highest elevation portion of the Green Brook Basin.
In 1998 a Task Force was formed to seek a new consensus for
protection of the upper portion of the Basin.
Following the recommendations of the Task Force, in calendar year
2003, Resolutions of Support for protection of the upper portion of the
Basin were adopted, along the lines of the recommendations of the Task
Force. These new Resolutions of Support for the protection of the upper
portion of the Basin, principally the Municipalities of Plainfield and
Scotch Plains, were adopted by those Municipalities, and by the two
affected Counties of Union and Somerset.
A final design for a new plan to protect these upper basin
Municipalities remains to be done. This work will involve a new effort
by the Corps of Engineers, and of course will require that the Corps of
Engineers enlist technical support for surveying, environmental
investigations, and design studies, by the placing of appropriate
contracts with qualified outside consulting engineering firms.
This work will require many months, and contracts for actual
construction of these protective measures for the upper portion of the
region are not likely to be ready until several more years. It is
understood that when these studies have been completed, it will be
necessary for Congress to specifically authorize the final design of
the recommended plan. That likely cannot happen until fiscal year 2006,
or later.
Meantime, it is essential that this preparatory work continue. And
it is thus essential that the Corps of Engineers be authorized and
allowed to place contracts for environmental and engineering studies in
order to develop an acceptable plan for the protection of the upper
portion of the Green Brook Basin.
It is understood that specific action by the Congress is required
at this time to authorize the Corps of Engineers to continue this work
in fiscal year 2005 and beyond. It is also understood that before final
design for protection of the upper portion of the Green Brook Basin can
proceed, it will be necessary that a Project Cooperation Agreement be
entered into between the Corps of Engineers and the State of New
Jersey. Presumably, this Project Cooperation Agreement will be similar
to the Agreement now in force between the Corps of Engineers and the
State of New Jersey, which was made for the lower and Stony Brook
portions of the Green Brook Basin.
Page one of the Syllabus contained in the approved Final General
Re-evaluation Report of May 1997 contains the following:
``Accordingly, this final document is considered a decision
document for construction of the lower and Stony Brook portions of the
Basin, with continued planning and engineering of the separable upper
portion of the Basin. The decision to construct the upper portion
features will be deferred until such time that evaluations of
additional information and views are completed and local interests have
the opportunity to review findings.''
To carry this work forward, it is essential that the Corps of
Engineers be authorized, within the funds appropriated to them in
fiscal year 2005, to place contracts for engineering and environmental
studies pertaining to the protection of the upper portion of the Basin.
It is to be noted that the Estimated Damages caused by the Flood of
1973, in the upper portion Municipalities only, reported in the final
GRR of May 1997, page 33, showed that Estimated Damages in Plainfield,
Scotch Plains and Watchung (the upper portion of the Basin) amounted to
an estimated $357 million.
We urge the members of Congress to direct the Corps of Engineers,
within the funds made available to them for fiscal year 2005, to
continue the necessary investigations and studies, and to authorize the
Corps of Engineers to place contracts for such investigations as may be
necessary, so that the preparatory work for the ultimate protection of
the people and property within the upper portion of the Basin can be
carried forward.
The Green Brook Flood Control Commission is made up of appointed
representatives from Middlesex, Somerset and Union Counties in New
Jersey, and from the 13 Municipalities within the Basin. This
represents a combined population of about one-quarter of a million
people.
The Members of the Commission are all volunteers, and for 33 years
have served, without pay, to advance the cause of flood protection for
the Basin. Throughout this time, the Corps of Engineers, New York
District, has kept us informed of the progress of their work, and a
representative from the Corps has been a regular part of our monthly
meetings.
We believe that it is clearly essential that the Green Brook Flood
Control Project be carried forward, and pursued vigorously, to achieve
protection at the earliest possible date. This Project is needed to
prevent loss of life and property, as well as the trauma caused every
time there is a heavy rain.
New Jersey has programmed budget money for its share of the Project
in fiscal year 2005.
We urgently request an appropriation for the Project in fiscal year
2005 of $10,000,000.
With your continued support, the Green Brook Flood Control
Commission is determined to see this Project through to completion.
Thank you, Mr. Chairman, and members of the subcommittee, for your
vitally important past support for the Green Brook Flood Control
Project; and we thank you for the opportunity to submit this Testimony.
______
Prepared Statement of the Moss Landing Harbor District
Mr. Chairman and members of the subcommittee, on behalf of the
chairman and members of the Board of Harbor Commissioners, thank you
for the opportunity for me, Russell Jeffries, as President of the Board
of Harbor Commissioners of Moss Landing Harbor District in California
to submit prepared remarks to you for the record in support of the
fiscal year 2005 energy and water regular appropriations measure.
The commission recognizes and expresses its gratitude to our two
senators, the Honorable Dianne Feinstein, a valuable member of this
committee, and the Honorable Barbara Boxer for their continued
assistance and support on our behalf.
We express our profound appreciation to the subcommittee and full
committee for its inclusion of $600,000 in fiscal year 2004
appropriated funds for the preparation of a screening level Ecological
Risk Assessment under U.S. Army Corps of Engineers Waterways Experiment
Station supervision. The assessment was recently critiqued by a
preeminent peer group of experts scholars representing a broad cross
section of professional disciplines.
This sets the stage--with the committee's support--for the
preparation of a first-ever Dredged Material Management Plan (DMMP) for
the Harbor District in order to plan for orderly maintenance dredging
of the Federal channel and local berths next year and over the next 20
or more years. This effort is supported by a working group organized
under national dredging team local planning guidance, including
representatives of the Federal, State and local agencies, and other
stakeholder and public interest groups with an interest in dredging
activities.
To put our needs in proper perspective, our geographical location
and marine ecosystem is unique in that the Harbor District is located
at the confluence of the Pajaro and Salinas rivers in between two
national treasures--the Monterey Bay National Marine Sanctuary and the
Elkhorn Slough National Estuarine Research Reserve--precluding most
potential upland disposal sites for contaminated dredged material. The
SF-12 aquatic disposal site is grandfathered for sanctuary purposes. It
is located 50 yards offshore at the apex of the Monterey Bay Submarine
Canyon which plunges to a depth of 8,000 feet in less than 1 mile.
Every year. Periodic deposition, erosion, and flushing cycles transport
thousands of tons of sedimentary material down the canyon like a
chute--so much so that our dredged material is a miniscule amount
measured against the total annual flushing event.
Periodic El Nino events deposit trace elements of DDT in our harbor
sediments traced to Salinas Valley Agriculture--America's Salad Bowl--
as a natural sink. With no realistic long term alternative--including
upland disposal--to continued use of our current disposal site, our
very livelihood as the largest fishing port on the central coast and
largest concentration of marine scientific research south of Seattle,
is at stake.
Of amounts previously appropriated, approximately $2.4 million has
been expended for maintenance dredging to date and $600,000 has been
expended to begin the ERA process. Most of that was transferred to the
Corps of Engineers Waterways Experiment Station (WES) to prepare a
preliminary Ecological Risk Assessment (ERA). Previously appropriated
operations and maintenance funds have already been expended to
reimburse the San Francisco district for program management costs,
conduct of the required economic analysis (including a finding of a
very favorable current project benefit cost ratio of 1.7 to 1), DMMP
plan formulation and project scoping including alternative upland
disposal site analysis), and technical support to WES.
The most significant findings of the screening comparative ERA were
that in most cases the environmental impacts associated with periodic
maintenance dredging and disposal at the SF-12 site were less than the
no action alternative as periodic dredging removes the accumulation of
contaminated material in the first few centimeters thereby reducing its
bioavailability to benthic organisms at the base of the food web
thereby precluding its absorption in the lipid tissue of higher trophic
level organisms.
With the committee's support 2 years we completed a periodic
dredging cycle of the Federal channel work and the Inner Harbor using a
combination of beach replenishment and ocean disposal at the SF-12
historic disposal site for the first time in a decade. We anticipate
that next year we will finally returned to a normal 3-year maintenance
cycle of the Federal channel while local berth dredging of our all-
important commercial fishing and oceanographic vessel berths continues
on an annual basis.
During the next year we will be analyzing exiting data from a
variety of sources including USGS, Moss Landing Marine Laboratory, and
the Naval Post Graduate School among others filling in identified data
gaps in the screening ERA to drive the WES model, as necessary
completing complementary local site-specific scientific studies, and
integrating all those results into the DMMP process.
To this end we request the subcommittee's approval of $600,000 in
appropriations from the Operations and Maintenance General account in
fiscal year 2004 in order to complete the ecological risk assessment
and dredged material management plan so that the process is completed
and plan implemented prior to the next periodic maintenance event
scheduled to occur in fiscal year 2006.
With the assistance of the local scientific community, we are
fortunate to have as much as 3 years of scientific data in the form of
benthic community biomass and tissue sampling, and first-ever near-
shore state-of-the-art bathymetric survey of the disposal site and
Monterey Bay Canyon. These efforts should prove invaluable in measuring
before and after direct impacts of dredged material disposal at the
disposal site.
With the assistance of the San Francisco district, we were able to
take advantage of last year's dredging episode to do before and after
measurement of both sedimentary transport at the disposal site and to
measure any direct impacts on benthic communities--the source of any
bioaccumulation of contaminated sediments in trace amounts.
Despite the drastic differences between the use of the WES ERA
model adapted from aquatic Mississippi River application and our unique
submarine canyon ecosystem and volume of material, a tracer study using
European technology was synchronized with the last disposal event that
demonstrated the rapid dispersion of dredged material at the SF-12
site. We are confident that on the basis of our preliminary review--and
that of the peer group--of the screening level ERA supported by local
site specific analysis of data already collected and focused studies to
augment the WES risk assessment model, the end result will be a
document that will ultimately prove persuasive and compelling to the
greater scientific community, Federal and State regulatory agencies,
and an informed and involved public in our community.
We now know that there is a considerable body of unpublished
relevant data concerning the Monterey Bay Canyon and the impact, fate
and effect of sedimentary material transport in the hands of the local
scientific community that must be collected, catalogued, analyzed, and
used both as input data and for comparison with the WES model so that
each can operate as an invaluable countercheck on the output results of
the other in predicting and directly measuring the impacts of dredged
material disposal at our ocean disposal site.
Based upon our experience thus far, the funds expended completing
the DMMP/ERA process in developing a persuasive case to the various
constituencies and decision document supporting continued aquatic
disposal for all but a very small fraction of total dredged material in
exceptional circumstances over a 20 year span of the study will save
significant amounts of scarce Federal and local dollars in the future.
That said, we sincerely hope our experience in this effort will:
(1) produce both a useful and practical multidisciplinary decision
document for those agencies exercising regulatory or oversight
jurisdiction over dredging in both our and other settings; and
(2) serve as a model for collaborative effort in dredged material
disposal consensus decision-making in unique situations such as for
other Corps districts and local sponsors seeking to balance required
maintenance dredging to support navigation with the corresponding need
to protect environmentally sensitive areas, in this instance the unique
Monterey Submarine Canyon located at the heart of the Monterey Bay
Marine Sanctuary.
I am prepared to supplement my prepared remarks for the record in
response to any questions that the chair, subcommittee members, or
staff may wish to have me answer. Thank you Mr. Chairman and members of
the subcommittee. This concludes my prepared remarks.
______
Joint Prepared Statement of The Port Commerce Department, The Port
Authority of New York & New Jersey; New Jersey Maritime Resources,
Department of Transportation, State of New Jersey; Empire State
Development Corporation, State of New York; and New York City Economic
Development Corporation
On behalf of the Port of New York and New Jersey, we thank you for
your continued support of the Nation's navigation system. We appreciate
the consistent level of funding that the committee has provided this
bi-State gateway that we are preparing for tomorrow's commerce in
partnership with the Federal Government. We were very pleased that
Chairman David Hobson and Rep. Rodney Frelinghuysen were able to visit
the port earlier this year. We would welcome all members of the
subcommittee to get a first-hand look at the harbor and its role in the
U.S. transportation system.
We are gratified that in the fiscal year 2005 budget the
administration maintains the deepening of the Port's main system of
channels as a priority. As such, we strongly endorse the President's
request for $103,000,000 for the NY & NJ Harbor Deepening Project. As
pleased as we are with that, we also share the concerns of many in the
national water resources sector that the overall civil works program is
shrinking. That is happening even as demand for navigation and other
water resource projects remains high. Our transportation and economic
systems will remain strong as long as the Nation's infrastructure is up
to the task and natural resources are in good condition. The long-term
capacity of the Corps of Engineers to help non-Federal governments
tackle infrastructure needs depends on strong funding.
Business in the Port of NY/NJ continues to increase at a strong
pace, lending credence to the government's view that investing in port
channels is good for the Nation. In 2003, our region's marine terminals
handled a record 4 million TEUs, an increase of roughly 300,000 TEUs
over 2002. More steamship lines are starting all-water service to the
East Coast to reduce costs and their reliance on ports of only one U.S.
coast. This continuing trend promises greater cargo throughput in the
years ahead. The Port and industry are preparing for the influx with a
$1.46 billion redevelopment program that includes underwater, terminal,
and access improvements. That public/private investment illustrates the
partnership between the Federal and non-Federal investors in the
Nation's economic future. The bi-State Port supports almost 40,000
terminal-based jobs and over 189,000 off-terminal positions, but the
benefits are not limited to our region. Nationwide, almost 186,000
additional jobs are supported by the Port. The Port directly serves the
Northeast and Midwest as well as most States in the continental United
States. The channel projects will improve transportation efficiency
that will benefit those markets and our national defense.
Crucial to the Port redevelopment program is the support of
Governor James McGreevey and Governor George Pataki. They made strong
commitments to investing Port Authority and other resources to make the
Port and regional freight transportation more efficient, and the Port's
natural resources healthier. We are proud of the support that
businesses, labor, local government and others, listed at the top of
this statement, have given to this most productive port on the Atlantic
Ocean.
Below are our comments on the fiscal year 2005 budget request. We
enthusiastically support the administration's request with respect to
the Harbor Deepening Project and respectfully request that the
subcommittee appropriate funds at higher levels for select projects as
noted and discussed below. Projects in bold lettering are requests
beyond the fiscal year 2005 budget levels.
------------------------------------------------------------------------
Budget Port Request
------------------------------------------------------------------------
Construction: New York & New Jersey $103,000,000 $103,000,000
Harbor.................................
-------------------------------
Surveys (Studies):
Hudson-Raritan Estuary, NY & NJ..... 450,000 2,500,000
Hudson-Raritan Estuary, Lower 50,000 1,500,000
Passaic River, NJ..................
Hudson-Raritan Estuary, Gowanus 150,000 1,500,000
Canal, NY..........................
Hudson-Raritan Estuary, Meadowlands, 100,000 850,000
NJ.................................
-------------------------------
TOTAL............................. 750,000 6,350,000
-------------------------------
Operation and Maintenance:
Buttermilk Channel, NY.............. 1,030,000 1,030,000
East River, NY...................... 370,000 370,000
East Rockaway Inlet, NY............. 2,100,000 2,100,000
Flushing Bay & Creek, NY............ .............. 11,000,000
Hudson River Channel................ .............. 4,500,000
Jamaica Bay, NY..................... 2,200,000 2,200,000
New York Harbor, NY & NJ Drift 5,414,000 5,914,000
Removal............................
New York Harbor, NY................. 4,235,000 4,235,000
New York & New Jersey Channels...... 5,700,000 7,000,000
Newark Bay, Hackensack & Passaic 120,000 3,000,000
Rivers, NJ.........................
Project Condition Surveys, NJ....... 1,670,000 1,670,000
Project Condition Surveys, NY....... 1,075,000 1,075,000
Raritan River, NJ................... .............. 2,500,000
Westchester Creek, NY............... .............. 100,000
-------------------------------
TOTAL............................. 23,914,000 46,744,000
------------------------------------------------------------------------
CONSTRUCTION
New York and New Jersey Harbor
This project was authorized by Section 101(a)(2) of WRDA 2000
(Public Law 106-541). It includes deepening the Ambrose Channel from
deep water to the Verrazano-Narrows Bridge to 53 feet mlw, and
deepening the Anchorage Channel and those channels that lead to the
principal general cargo and breakbulk marine terminal areas to 50 feet
mlw. The Corps of Engineers and the intended project sponsor are
engaged in pre-construction engineering and design work to bring this
project into construction seamlessly as the Kill Van Kull and Newark
Bay deepening to 45 feet is concluded in late 2004. To facilitate
project transition, the intended project sponsor is completing a
construction contract to deepen to 50-feet portions of the Kill Van
Kull and Newark Bay channels as a complement to the Corps' 45-foot
project. These efforts and the overall commitment of the Port to the
projects are strong testimony to our desire to advance this project
with the Federal Government. We urge adoption of the budget request.
SURVEYS (STUDIES)
Hudson-Raritan Estuary Studies
These studies were authorized by House Committee Resolution dated
April 15, 1999, Docket Number 2596. Increases are requested for the
studies in order to achieve the completion schedules of 2005 for the
New York & New Jersey and Lower Passaic studies and 2004 for the
Gowanus study.
--New York & New Jersey.--The study purpose is to identify projects
to restore estuarine, wetland and adjacent upland buffer
habitat throughout the port region to the extent practicable
and in keeping with existing port and regional management
plans. The Corps and the Port Authority signed the Feasibility
Cost Sharing Agreement on July 12, 2001, and immediately began
the study. Natural resource areas, degraded as a result of
historic damage, need to be returned to their full potential.
The continued loss of wetlands, not only through development
but due to inexplicable causes, will require further analysis,
monitoring and restoration. One project that can move on a fast
track is Liberty State Park, where the State of New Jersey has
all of its required project funds on hand, ready to provide to
the Corps for construction. Given the past funding levels, the
Corps is unable to proceed both with the Liberty State Park and
the comprehensive regional study. We respectfully request that
the budget be augmented to $2,500,000 to allow the Corps to
keep its commitments to place the environment on an equal
footing with navigation improvements.
--Lower Passaic.--Local communities throughout the Passaic River
Basin requested a program of improvements to remediate and
restore the river. The river and adjacent shorelines have been
degraded by historic industrial/commercial activity and
associated impacts of urban development. The Corps initiated
the Reconnaissance Phase in January 2000 that recommended a
separate study for the tidal influence of the Lower Passaic
River. In June 2003, the Corps, in partnership with EPA and the
NJDOT/Office of Maritime Resources, completed a comprehensive
Project Management Plan (PMP) that integrates the work of all
three agencies into a single study to determine the best
approach. In the same month, the Corps signed the Feasibility
Cost-Sharing Agreement (FCSA) with the Office of Maritime
Resources and began the feasibility study. This project also
has been designated as a pilot project under the joint Corps-
EPA Urban Rivers Restoration Initiative. Despite the
outstanding coordination between the three agencies, Federal
funding is a concern. We are pleased that the non-Federal
matching funding will be available as the project requires. EPA
expects sufficient funding from PRPs to begin field
investigations by Fall 2004. As such, lack of Federal funding
will jeopardize the Corps' ability to participate in the joint
fieldwork envisioned in the PMP. For that reason, we request
that the budget be augmented to $1,500,000 for this study.
--Gowanus.--The feasibility study will assess the environmental
problems and potential solutions in the Gowanus Canal and Bay.
Restoration measures will assess hot spot clean-up of off-
channel contaminated sediments, contaminant reduction measures,
creation of wetlands, water quality improvements, and
alteration of hydrology/hydraulics to improve water movement
and quality. This has been designated as a pilot project under
the joint Corps-EPA Urban Rivers Restoration Initiative. A FCSA
was executed with the NYC Department of Environmental
Protection in March 2002. The City has committed its full share
to the project, and awaits the Federal match. In order to
continue the study restoration of this highly contaminated,
visible urban body of water (including benefits to human
health), we request that the budget be augmented to $1,500,000.
--Hackensack.--This study will look at the feasibility of restoring
wetlands in the Hackensack Meadowlands area and will assess
toxic waste remediation potential. The area's existing wildlife
habitat preserves are threatened by dwindling open marshes. The
local sponsor is the NJ Meadowlands Commission, which has
committed funding, and looks toward the Federal share. We
respectfully request that the budget be augmented to $850,000
for this study aimed at protecting marshes, tidal creeks and
open spaces.
OPERATION AND MAINTENANCE
Operation and maintenance projects are critical to the commerce,
navigation and security of the Port as well as the Nation's security.
If channels are not maintained to official depths and as needed by
today's commerce, the efficiency of the Federal system of channels is
lost and the risk of groundings increases. The Corps deepened the
Newark Bay channel that leads to the Port Newark/Elizabeth terminal
complex from 35 feet to 40 feet in 1995 as part of Phase 1 of the Kill
Van Kull-Newark Bay 45-foot deepening project. In fiscal year 2002,
Congress appropriated funds that enabled only partial maintenance of
that channel, leaving significant areas at shallow and potentially
unsafe depths. Unfortunately, the proposed budget would provide
insufficient funding to adequately maintain Federal channels in the
Port. The Port is one the Nation's busiest petroleum ports and the
Arthur Kill and Raritan River channels are critical to that trade.
Maintenance of the two channels is needed to support the industry,
which serves not only the greater New York metropolitan area but much
of the American northeast. Of course, maintenance also protects and
perpetuates the Federal infrastructure investment.
With the above concerns in mind, we think it is important to be on
the record as to how this part of the fiscal year 2005 budget is
insufficient to meet the practical needs of commerce. We respectfully
request that the budget be augmented by $22,830,000 to $46,744,000 for
Port channel operation and maintenance work. This also would enable the
Corps to address serious shoaling problems in industrial and commercial
portions of Flushing Creek, the Arthur Kill, the Hudson River Channel
and the Raritan River, and to maintain on-going activities and upgrade
the operational facilities at the Corps' Caven Point facility relative
to the important, ongoing New York Harbor Drift Removal efforts.
CONCLUSION
The Port of New York & New Jersey continues to be a major gateway
for a substantial part of the country. Cargo volume has grown, even
while the economy struggles, and has been a source of increased jobs
and commercial investment. The civil works program in the Port, coupled
with public and private sector investments, has served well the
Nation's economic and security interests for the better part of two
centuries. The same is true in ports across the United States. We are
proud of that history and commit to continuing this productive
partnership with the Federal Government so that our region will serve
the Nation for centuries to come.
______
Prepared Statement of the Mississippi Valley Flood Control Association
My name is M.V. Williams, I serve as President of the West
Tennessee Tributaries Association and submit this statement on behalf
of the Mississippi Valley Flood Control Association. It is my privilege
to serve as Chairman of the Executive Committee for the Association.
The Mississippi Valley Flood Control Association was first
organized in 1922 and played a very large role in gaining authorization
for the first major Federal water resources bill, the Flood Control Act
of 1928 that established the Mississippi River and Tributaries Project.
This statement is in support of additional funding for that project.
Today our Nation is faced with a war on terror and we are also
mindful of the fact that we must rectify an economic condition that
needs immediate attention. Even faced with those facts, we feel that we
are justified in urging additional appropriations for the Mississippi
River and Tributaries Project because the assets and resources of this
great Nation must not be neglected during these times. We know of no
other appropriation which contributes as much to national wealth and
resources as does flood control and navigation for the major rivers of
this country.
Millions of acres which were overflow lands decades ago are now
highly productive and contributing to our national wealth. These lands
by reason of their geographic location are the most fertile of the
Nation. They produce an abundance of food and fiber for the general
welfare and prosperity of the country. This is only possible because of
the coordinated work performed by the United States Corps of Engineers
and the local people.
The inland waterways of the Nation provide the cheapest and in some
cases the only method to move bulk commodities that are absolutely
essential to the general welfare and prosperity of the country. Moneys
appropriated by Congress for flood control and navigation has and will
augment our natural resources and improve our economic well-being. The
appropriations made by Congress for the Mississippi River and
Tributaries Project are investments in this Nation's future.
Since the productivity of the millions of acres of low lying lands
adjacent to the main stem of the Mississippi River are totally
dependent upon the integrity of the flood control works, any major slow
down in the completion of this work will represent economic
strangulation to this productive portion of our Nation.
If no funds are added to the President's budget request, the Corps
of Engineers will be forced to curtail operations of locks and some
harbors may be closed from lack of maintenance dredging. This will mean
the loss of jobs and possible closure of plants that have millions of
dollars invested in their facilities. Recreational areas will be forced
to close, disrupting the lives of millions of citizens from all walks
of life.
In addition to the problems with the inadequate funding in the
President's budget request, we also have a tremendous problem with the
fact that the Office of Management and Budget is attempting to dictate
policy matters by the use of the budget submission. The greatest damage
from this policy change would be to take the Congress out of its
historical role of legislating policy for the flood control and
navigation programs that have played a large part in making the United
States the greatest industrial and commercial nation on the globe--with
its resources, its wealth and productive capability that has saved the
world in war and sustained it through years of troubled peace.
The executive department is again attempting to supplant this
historical Congressional role and assume these policy making functions.
In past attempts, the Congress in its wisdom has soundly rejected these
attempts. We would urge this Congress to do the same.
In closing let me reemphasize that Federal works projects with
proven merit such as the Mississippi River and Tributaries Project
represent a sound Federal investment which has and will return to the
tax payers of this country generous dividends. Such Federal investments
contribute to the economic well being of the Nation by reducing
unemployment; adding to the stability and economic growth of
agriculture and industry; and providing a flood free environment for
the welfare of the people of the Mississippi River Valley.
For these and other reasons, we are firmly convinced that the
amount of appropriations required in fiscal year 2005 for the
Mississippi River and Tributaries Project is $450,000,000. An attached
sheet to this statement reflects our request in more detail.
Speaking for the entire Mississippi Valley Flood Control
Association, I wish to thank the subcommittee for the opportunity to
present this statement and special thanks for the actions that this
group has taken in the past to assist us with our problems and concerns
with water resources.
MISSISSIPPI VALLEY FLOOD CONTROL ASSOCIATION--FISCAL YEAR 2005 CIVIL
WORKS REQUESTED BUDGET--MISSISSIPPI RIVER AND TRIBUTARIES PROJECT--
MAINTENANCE
------------------------------------------------------------------------
President's
Project Budget MVFCA Request
------------------------------------------------------------------------
Wappapello Lake, MO..................... $4,046,000 $6,352,000
Mississippi River Levees................ 7,665,000 14,915,000
Dredging................................ 20,515,000 20,515,000
Revetment and Dikes..................... 48,760,000 48,760,000
Memphis Harbor, TN...................... 1,205,000 2,010,000
Helena Harbor, TN....................... 385,000 510,000
Greenville Harbor, MS................... 29,000 412,000
Vicksburg Harbor, MS.................... 32,000 345,000
St. Francis River & Tribs, AR........... 6,080,000 8,805,000
White River Backwater, AR............... 1,316,000 2,260,000
North Bank, Arkansas River, AR.......... 146,000 146,000
South Bank, Arkansas River, AR.......... 122,000 122,000
Boeuf & Tensas Rivers, LA............... 2,160,000 2,160,000
Red River Backwater, LA................. 3,083,000 7,390,000
Yazoo Basin, Sardis Lake, MS............ 7,046,000 19,322,000
Yazoo Basin, Arkabutla Lake, MS......... 5,710,000 12,900,000
Yazoo Basin, Enid Lake, MS.............. 4,954,000 13,679,000
Yazoo Basin, Grenada Lake, MS........... 5,553,000 10,101,000
Yazoo Basin, Greenwood, MS.............. 585,000 2,035,000
Yazoo Basin, Yazoo City, MS............. 729,000 729,000
Yazoo Basin, Main Stem, MS.............. 1,013,000 3,966,000
Yazoo Basin, Tributaries, MS............ 923,000 923,000
Yazoo Basin, Whittington Aux Channel, MS 400,000 400,000
Yazoo Basin, Big Sunflower, MS.......... 139,000 2,139,000
Yazoo Basin, Yazoo Backwater, MS........ 440,000 926,000
Lower Red River, South Bank, LA......... 105,000 105,000
Bonnet Carre, LA........................ 2,310,000 3,100,000
Old River, LA........................... 7,350,000 29,900,000
Atchafalaya Basin, LA................... 13,000,000 25,000,000
Atchafalaya Basin Floodway, LA.......... 2,775,000 4,200,000
Baton Rouge Harbor Devil's Swamp, LA.... 14,000 300,000
Miss Delta Region, LA................... 588,000 588,000
Bayou Cocodrie & Tribs, LA.............. 65,000 65,000
Inspection of Completed Works........... 1,500,000 1,700,000
Mapping................................. 1,112,000 1,325,000
-------------------------------
Total MR&T Maintenance............ 151,855,000 248,105,000
------------------------------------------------------------------------
MISSISSIPPI VALLEY FLOOD CONTROL ASSOCIATION--FISCAL YEAR 2005 CIVIL
WORKS REQUESTED BUDGET--MISSISSIPPI RIVER AND TRIBUTARIES APPROPRIATIONS
------------------------------------------------------------------------
President's
Project and State Budget MVFCA Request
------------------------------------------------------------------------
Surveys, Continuation of Planning and
Engineering & Advance Engineering &
Design:
Memphis Harbor, TN.................. .............. ..............
Germantown, TN...................... $27,000 $27,000
Millington, TN...................... 100,000 100,000
Fletcher Creek, TN.................. 93,000 93,000
Memphis Metro Storm Water .............. 100,000
Management, TN.....................
Bayou Meto, AR...................... .............. 2,447,000
Germantown, TN...................... .............. 200,000
Southeast Arkansas.................. .............. 600,000
Coldwater Basin Below Arkabutla 203,000 750,000
Lake, MS...........................
Quiver River, MS.................... .............. 100,000
Spring Bayou, LA.................... 500,000 600,000
Point Coupee to St. Mary Parish, LA. .............. 100,000
Atchafalaya Basin Floodway System, 100,000 100,000
LA*................................
Alexandria, LA to the Gulf of Mexico 435,000 435,000
Morganza, LA to the Gulf of Mexico.. 1,500,000 10,000,000
Donaldsonville, LA to the Gulf of 800,000 1,200,000
Mexico.............................
Tensas River, LA.................... .............. 500,000
Donaldsonville Port Development, LA. .............. 100,000
Collection & Study of Basic Data.... 700,000 700,000
-------------------------------
Subtotal, Surveys, Continuation of 4,458,000 18,152,000
Planning & Engineering & Advance
Engineering & Design.............
-------------------------------
Construction:
St. John's Bayou-New Madrid 8,300,000 8,300,000
Floodway, MO.......................
Eight Mile Creek, AR................ 1,357,000 3,293,000
Helena & Vicinity, AR............... .............. ..............
Grand Prairie Region, AR............ .............. 20,000,000
Bayou Meto, AR...................... .............. 18,000,000
West Tennessee Tributaries, TN...... .............. 700,000
Nonconnah Creek, TN................. 2,153,000 2,753,000
Wolf River, Memphis, TN............. .............. 2,400,000
August to Clarendon Levee, Lower .............. 2,000,000
White River, AR....................
St. Francis Basin, MO & AR.......... 3,000,000 9,500,000
Yazoo Basin, MS..................... 5,850,000 62,775,000
Atchafalaya Basin, LA............... 22,495,000 32,500,000
Atchafalaya Basin Floodway, LA...... 7,200,000 10,000,000
MS Delta Region, LA................. 1,800,000 4,700,000
Horn Lake Creek, MS................. .............. 203,000
MS & LA Estaurine Area, MS & LA..... .............. 50,000
Channel Improvements, IL, KY, MO, 36,882,000 44,082,000
AR, TN, MS & LA....................
Mississippi River Levees, IL, KY, 38,960,000 54,800,000
MO, AR, TN, MS & LA................
-------------------------------
Subtotal, Construction............ 127,997,000 276,056,000
Subtotal, Maintenance............. 151,855,000 248,105,000
-------------------------------
Subtotal, Mississippi River & 284,310,000 542,313,000
Tributaries......................
Less Reduction for Savings & -14,310,000 92,313,000
Slippage.........................
-------------------------------
Grand Total, Mississippi River & 270,000,000 450,000,000
Tributaries......................
------------------------------------------------------------------------
______
Prepared Statement of the Salt River Pima-Maricopa Indian Community and
the City of Mesa, Arizona
Chairman Domenici, Ranking Member Reid, and distinguished members
of the subcommittee, thank you for allowing us to testify on behalf of
the Salt River Pima-Maricopa Indian Community (SRPMIC) and the City of
Mesa in support of a fiscal year 2005 appropriation of $1.5 million for
the Va Shly'ay Akimel, Arizona, project of the U.S. Army Corps of
Engineers. This project, intended to restore a degraded stretch of the
Salt River in central Arizona, is critically important to the tribe,
the City, and the region.
Mr. Chairman, because of this subcommittee's efforts, $800,000 was
appropriated for the feasibility phase of the Va Shly'ay Akimel project
in fiscal year 2004. We are extremely grateful for the subcommittee's
ongoing support of the project. We respectfully request your continued
support for this project in fiscal year 2005 with an appropriation of
$1.5 million, which will initiate the pre-construction engineering and
design portion (PED) of the project.
Like many projects of the U.S. Army Corps of Engineers, Va Shly'ay
is drastically underfunded in the President's budget. Although the
budget does include $349,000 for the project in fiscal year 2004, the
Corps has a capability of $1.5 to initiate PED in the coming year. We
hope that the subcommittee will provide this level of funding in order
to contain costs and maintain an optimal project schedule.
SRPMIC and the City of Mesa fully recognize the importance of
restoring the Salt River's environmental integrity. As a consequence,
the tribe and City--the non-Federal sponsors of the project--remain
committed to discharging the requisite cost-sharing obligations
associated with the project. We would also note that, as far as we
know, this project is the only one in the Nation featuring a joint
cost-share agreement between an Indian tribe and a local community.
This makes it a unique project of the Corps of Engineers. We have every
reason to believe that this example of municipal-tribal cooperation
could serve as a model for future joint projects of tribal communities
and local governments.
In conclusion, it is critically important that this project remain
on an optimal schedule. The Corps has expressed a maximum capability of
$1.5 million to initiate PED on this project in fiscal year 2005. On
behalf of the SRPMIC and the City of Mesa, we ask that you fully fund
the Va Shly'ay Akimel project at $1.5 million in fiscal year 2005.
______
Prepared Statement of the Seminole Tribe of Florida
The Seminole Tribe of Florida is pleased to submit this statement
regarding the fiscal year 2005 budget for the Army Corps of Engineers
(Corps). The Tribe asks that Congress provide $27,000,000 in the Corps'
construction budget for critical projects in the South Florida
Ecosystem, as authorized in section 528 of the Water Resources
Development Act (WRDA) of 1996, and amended by section 208 of WRDA
1999. The critical projects program is tasked with completing ten
projects, one of which is complete, and the remaining nine either
completing planning and design or construction. The Seminole Tribe has
partnered with the Corps to design, build, and operate the critical
project on the Big Cypress Reservation, located in the western basins
of the Everglades, directly north of the Big Cypress National Preserve.
On January 7, 2000, the Tribe and the Corps signed a Project
Coordination Agreement for the Big Cypress Reservation's critical
project. The Tribe's critical project includes a complex water
conservation plan and a canal that transverses the Reservation. In
signing this Agreement, the Tribe, as the local sponsor, committed to
funding half of the cost of this approximately $50 million project. The
project is divided into two phases; construction of the first phase is
complete and planning and design on the second phase will be complete
in a few months, allowing construction to begin in fiscal year 2005.
The Seminole Tribe's project addresses the environmental
degradation wrought by decades of Federal flood control construction
and polluted urban and other agricultural runoff. The interrupted sheet
flow and hydroperiod have stressed native species and encouraged the
spread of exotic species. Nutrient-laden runoff has supported the rapid
spread of cattails, which choke out the periphyton algae mat and
sawgrass necessary for the success of the wet/dry cycle that supports
the wildlife of the Everglades. This is designed to mitigate the
degradation the ecosystem has suffered through decades of flood control
projects and urban and agricultural use and ultimately to restore the
Nation's largest wetlands to a healthy state.
The Seminole Tribe's critical project provides for the design and
construction of flood control, storage, and treatment facilities on the
western half of the Big Cypress reservation with other conveyance
facilities on the eastern side. The project elements include canal and
pump conveyance systems, including major canal bypass structures,
irrigation storage cells, and water quality polishing areas. This
project will enable the Tribe to meet targets for low phosphorus
concentrations, as well as to convey and store irrigation water and
improve flood control. It will also provide an important public
benefit: a new system to convey excess water from the western basins to
the Big Cypress National Preserve, where water is vitally needed for
rehydration and restoration of natural systems within the Preserve.
Improving the water quality of the basins feeding into the Big
Cypress National Preserve and the Everglades National Park is vital to
restoring the Everglades for future generations. Congress has
acknowledged this need through the passage of the last three Water
Resource Development Acts. This committee has consistently shown its
support through appropriating requested amounts over the last seven
fiscal years. By continuing to grant this appropriation request for
critical project funding, the Federal Government will take another
substantive step towards improving the quality of the surface water
that flows over the Big Cypress Reservation and on into the delicate
Everglades ecosystem. Such responsible action with regard to the Big
Cypress Reservation, which is Federal land held in trust for the Tribe,
will send a clear message that the Federal Government is committed to
Everglades restoration and the Tribe's stewardship of its land.
Completion of the critical project requires a substantial
commitment from the Tribe, including the dedication of over 2,400 acres
of land for water management improvements and meeting a 50/50 cost
share. The Tribe has completed the first phase of construction with the
main conveyance canal. As the Tribe moves forward with its contribution
to the restoration of the South Florida ecosystem, increasing Federal
financial assistance will be needed as well.
The Tribe has demonstrated its economic commitment to the
Everglades Restoration effort; the Tribe is asking the Federal
Government to also participate in that effort. This effort benefits not
just the Seminole Tribe, but all Floridians who depend on a reliable
supply of clean, fresh water flowing out of the Everglades, and all
Americans whose lives are enriched by this unique national treasure.
Thank you for the opportunity to present the request of the
Seminole Tribe of Florida. The Tribe will provide additional
information upon request.
______
Prepared Statement of Volusia County, Florida
On behalf of our citizens and fishermen, Volusia County, Florida
requests that the Energy & Water Subcommittee appropriate:
--$3,500,000 in fiscal year 2005 to the U.S. Army Corps of Engineers'
(Corps) Construction account to fund an 1,000 foot seaward
extension of the South Jetty of the Ponce DeLeon Inlet. The
South Jetty seaward extension, along with the North Jetty
landward extension funded in fiscal years 1999, 2000, and 2002
and completed in June 2003, is essential for safe inlet
navigation and protection of the Federal investment in the
Inlet channel.
--$3,000,000 in fiscal year 2005 to the Corps' Operations and
Maintenance account to fund the removal of 300,000 cubic yards
of sand from the North Cut of the Ponce DeLeon Inlet to provide
for safe navigation until the South Jetty construction is
complete.
--$500,000 in fiscal year 2005 to the Corps' General Investigations
account to fund the feasibility study for the Volusia County
Shore Protection project for the shore protection of 49.5 miles
of Volusia County beaches.
A more detailed case history and description of the situation and
projects follow below.
PONCE DELEON INLET
Ponce DeLeon Inlet is located on the east coast of Florida, about
10 miles south of the City of Daytona Beach in Volusia County. The
Inlet is a natural harbor connecting the Atlantic Ocean with the
Halifax River and Indian Rivers and the Atlantic Intra-coastal Waterway
(AICW). Ponce DeLeon Inlet provides the sole ocean access to all of
Volusia County and is the only stabilized inlet on the east coast of
Florida between St. Augustine and Cape Canaveral, a distance of 112
miles. Fishing parties and shrimp and commercial fisherman bound for
New Smyrna Beach or Daytona Beach use the Inlet, as well as others
entering for anchorage. Nearby fisheries enhanced by the County's
artificial reef program attract both commercial and sport fisherman.
Head boat operators also provide trips to view marine life and space
shuttle launches from Cape Canaveral. In addition, U.S. Coast Guard
Lifeboat Station Ponce is located immediately inside Ponce de Leon
Inlet and provides navigation safety and security for boaters,
fisherman, divers and sailors from the entire east central Florida
region.
Unfortunately, the Inlet is highly unstable and, despite numerous
navigation projects, continues to threaten safe passage for the charter
boat operators and commercial fisherman who rely on the access it
provides for their livelihood. Recreational boaters and Coast Guard
operators are also at risk passing through this unstable inlet. The
shoaling of the channels in the Inlet so restricts dependable
navigation that the Coast Guard no longer marks the north channel in
order to discourage its use. The Coast Guard continues to move the
south and entrance channel markers and provides warnings that local
knowledge and extreme caution must be used in navigating the inlet.
More seriously, the Coast Guard search and rescue data for fiscal years
1981-1995 show that 20 deaths have resulted from vessels capsizing in
the Inlet, the direct result of the Inlet's instability. One hundred
forty seven vessels capsized and 496 vessels ran aground in the Inlet
during the same period.
The Federal interest in navigation through the Ponce DeLeon Inlet
dates back to 1884 and continues to the present. The existing
navigation project was authorized by the Rivers and Harbors Act of
1965. The construction authorized by that Act, including ocean jetties
on the north and south sides of the Inlet, was completed in July 1972.
It became evident soon after completion of the authorized project that
the project did not bring stability to the Inlet. A strong northeaster
in February 1973 created a breach between the western end of the North
Jetty and the sand spit the Jetty was connected to inside the Inlet.
The breach allowed schoaling to occur that was serious enough to close
boat yards and require almost $2 million worth of repairs, including
extending the western end of the North Jetty.
Under the existing maintenance agreement entered into upon
completion of the construction, the Corps periodically performs
maintenance on the Inlet. Maintenance projects have included several
dredging efforts, adding stone sections to the south side of the North
Jetty, extending the westward end of the North Jetty for the second
time, and closing the North Jetty weir. Prior to the North Jetty
project discussed below, the Corps' last maintenance was dredging,
completed on the entrance channel in January 1990.
In fiscal year 1998, the Corps received a $3,500,000 appropriation
for emergency maintenance on the North Jetty. Migration of the entrance
channel undermined the North Jetty, seriously threatening its
structural integrity. The fiscal year 1998 funds were used to construct
a granite rock scour apron for the 500 to 600 feet of where the Jetty
was undermined.
In fiscal year 1999, the Corps received $4,034,000 from the
Operations and Maintenance account to extend the North Jetty of the
Inlet landward by 800 feet. This maintenance project was completed in
July 2002 to prevent the erosion that will cause outflanking of the
North Jetty. Continued outflanking of the west end of the North Jetty
could create a new inlet for the Halifax and Indian Rivers resulting in
major changes to the Ponce DeLeon Inlet. The resultant shoaling of both
the north and south channels, as well as changes to the entrance
channel, would make passage through the inlet extremely dangerous and
unpredictable.
In fiscal year 2000, the Corps received $7,696,000 in their
Operations and Maintenance account for use in the Ponce DeLeon Inlet.
This appropriation provided funding to continue the North Jetty
project, funding for surveys designed to determine the scope of a new
maintenance contract for the Ponce De Leon Inlet, and funding for a
dredging project to address a minor maintenance issue under the
existing maintenance contract.
In fiscal year 2001, the Corps received $46,000 in their Operations
and Maintenance account for standard maintenance of the Ponce DeLeon
Inlet.
In fiscal year 2002, Congress appropriated $2.032 million to the
Corps' Operations and Maintenance account for completion of the North
Jetty construction. The Corps completed construction of this project in
July 2002.
In fiscal year 2003, Congress provided $1 million in the Corps'
Construction account for commencement of the South Jetty oceanward
extension, as authorized by WRDA 1999.
In fiscal year 2004, Congress provided $500,000 in the Corps'
Construction account for construction of the South Jetty oceanward
extension, as authorized by WRDA 1999.
For fiscal year 2005, Volusia County requests that the Corps
receive $3.5 million for the balance of the Federal share of
construction funds for the South Jetty oceanward extension. The project
manager expects the South Jetty to be constructed in one fiscal year.
The Corps anticipates that the construction of the Jetty extensions
will help stabilize the Inlet and reduce future maintenance costs. In
addition to creating a safer navigation environment, completion of the
South Jetty, to complement the North Jetty, will save future Federal
maintenance costs.
The Ponce DeLeon Inlet presents a serious engineering challenge,
the success of which is measured in terms of human life and vessel
damage. The existing project has failed to stabilize the Inlet.
Extending the North Jetty was the first step toward correcting the
failure and meeting the challenge. Full funding of the 1,000 foot
oceanward extension of the South Jetty is the next critical step toward
providing safe passage for the commercial and recreational boaters in
Volusia County.
State agencies, including the Florida Inland Navigation District
and the Florida Department of Environmental Protection agree and
therefore have committed to assisting the County in meeting the local
cost share. In addition, providing these funds at this time is likely
to prevent the need for a much more substantial maintenance project in
the near future.
In addition to the construction funding for the jetty projects to
protect the Ponce DeLeon Inlet, the County also requests $3,000,000 be
appropriated in the Corps' Operations and Maintenance account, for the
Corps to remove 300,000 cubic yards of sand from the North Cut of the
Ponce DeLeon Inlet. As discussed above, the North Jetty construction
was completed in July 2002 and the South Jetty construction will begin
this year. Maintenance dredging is needed until both jetties are
constructed.
Until both the North and South Jetty projects are operational, sand
continues to shoal in the navigation channels of the Ponce DeLeon
Inlet. The shoaling creates unsafe navigation conditions, thereby
impeding commercial and recreational traffic. Removing 300,000 cubic
feet of sand from the North Cut of the Inlet will greatly improve safe
navigation. Finally, this effort is supported locally, as evidenced by
the County's grant of $395,000 to the Corps for emergency dredging of
the North Cut in fiscal year 2003.
VOLUSIA COUNTY BEACH PROTECTION PROJECT
In August 1991, the Corps of Engineers completed a favorable
reconnaissance report for the shore protection study to address the
critical erosion along the County's 49.5 miles of ocean shoreline, as
authorized by the House Transportation and Infrastructure Committee in
September 1988. The County declined to act as the non-Federal sponsor
for the feasibility study at that time. The Corps modified the 1991
reconnaissance study in 1994. As a result of heavy damage to the
County's shoreline sustained during the 1999 hurricane season, the
County recognized the critical need to address the growing impact of
the storm-induced erosion. The Corps will need to modify the earlier
studies. A new reconnaissance study for the Volusia County Shore
Protection project (formerly known as the Daytona Beach Shores project)
was authorized by a resolution adopted by the House Transportation and
Infrastructure Committee on February 16, 2000. In fiscal year 2003,
Congress provided the Corps with $100,000 to complete the
reconnaissance study. The Corps has completed the draft reconnaissance
study, which is currently undergoing final review and is expected to be
completed during fiscal year 2004. The draft reconnaissance study
recommends further action. A feasibility study is the next step.
The feasibility study will include, among other things, plan
formulation, surveys, geotechnical analysis, beach modeling, and
environmental analysis for Volusia County's 49.5 mile shoreline. The
Corps estimates the cost of the feasibility study to be $3 million and
expects to complete the study in 3 to 4 years. The cost share for the
feasibility study is 50 percent Federal and 50 percent non-Federal. In
fiscal year 2005, the Corps will spend $1 million for the Volusia
County Shore Protection Project, of which the Federal share is
$500,000.
While previous studies to address beach erosion were not acceptable
to the County as the local sponsor, the County seeks the Corps'
assistance now to address continuing erosion damage initiated during
the 1999 hurricane season. The County recognizes its dire need in
having its beaches renewed, preserved, and protected.
Thank you for your consideration of this request.
______
Prepared Statement of the National Mining Association
The National Mining Association's (NMA) membership includes
companies engaged in the production of coal, metallic ores, nonmetallic
minerals, and in manufacturing mining machinery and equipment. The
transportation of coal and minerals to domestic and international
markets utilizes our Nation's inland waterways system, Great Lakes,
coastal shipping lanes, and harbors and shipping channels at deep draft
inland and coastal ports.
NMA believes that a strong transportation network comprised of our
highways, rails, inland waterways and ports is critical to the economic
growth, security and competitiveness of the United States. According to
the U.S. Army Corps of Engineers Waterborne Commerce Statistics of
2002, approximately 2.34 billion tons of commerce moved in the U.S.
marine system (inland waterways, Great Lakes, coastal and deep-draft
ports). Of that total, approximately 1.02 billion tons were domestic
movements with coal comprising approximately 227 million tons or 22
percent of all commodities. Of the 227 million tons of coal, 175
million tons were carried on the inland and intracoastal waterways,
19.4 million tons on the Great Lakes and the remainder moved in
coastwise and intraport shipments. On the Ohio River system and its
tributaries, coal movements totaled 159 million tons or 56 percent of
all the traffic. Coal moved to power plants along the system and to
power plants in 8 States outside of the Ohio basin. In addition, 48.7
million tons of coal was exported in 2002.
Iron ore, phosphate rock, and other minerals also utilize the
inland waterways system. In 2002, 73.1 million tons of iron ore moved
on the system. Of the total, 52.4 million tons moved domestically with
46.8 million tons moved on the Great Lakes and 5.6 million tons on the
inland system. More than 6.2 million tons of phosphate rock moved on
the waterways system with 3.5 million tons by coastwise movements.
NMA is very concerned that the proposed fiscal year 2005 budget for
the Corps of Engineers does not provide sufficient funding to keep
critical navigation projects on schedule, allow for the start of new
projects, and address the maintenance backlog for existing navigation
projects. The 25,000 miles of waterways and harbor channels are a major
component of the transportation infrastructure system in the United
States. The Nation's waterways system is an efficient and timely method
to move commerce throughout the United States. It currently moves 2.4
billion tons of cargo annually.
Each year, barges on the waterways handle cargo equal to 40 million
trucks or 10 million railcars. Without the waterways system, the
Nation's already overcrowded and in some cases gridlocked highways,
would not be able to be used. In addition, there would be a significant
increase in air and noise pollution from the additional trucks on the
roads. A river barge with a 1,500-ton capacity can transport up to 58
large trucks or 15 large jumbo rail hopper cars worth of cargo. Barge
transport also saves shippers on average $11 per ton, compared to
shipping the same amount of cargo by truck or rail.
In addition, the waterways system is critical to our Nation's
national defense. Manufacturing and industrial facilities providing the
military with needed weapons and materials are located near the
Nation's water system. Many of our Nation's large commercial ports also
serve as the home to the U.S. Navy's fleets.
NMA is concerned that the full amount appropriated by Congress to a
specific project is not always what is actually available to a project
for a specified fiscal year. For example, in fiscal year 2004, the
Kentucky Lock was appropriated $29.9 million but the project actually
received $23.1 million for fiscal year 2004. Because of the reduced
funding levels, projects are taking longer and the benefits are being
lost to shippers and to the U.S. economy. NMA requests that projects
receive the full amount appropriated in a given fiscal year.
NMA continues to be very concerned with the surplus in the Inland
Waterways Trust Fund (IWTF). One-half of the lock and dam construction
and major rehabilitation funds come from the Inland Waterways Trust
Fund (IWTF), which receives 20 cents from a 24.3 cents per gallon tax
on the fuel used for inland waterways barge operations. The General
Treasury receives the remaining 4.3 cents. Commercial users are the
only beneficiaries of the inland waterways system who pay a fuel tax,
while beneficiaries who receive flood control, water supply,
recreational and other benefits do not contribute to the construction
or maintenance of the system providing these benefits. For the last 12
years, the Federal Government has not allocated sufficient funds to
these projects to keep up with revenues flowing into the IWTF. The
result as of September 30, 2001 is a Fund surplus of approximately $392
million according to The Bureau of Public Debt, U.S. Department of the
Treasury. A constraint on the funding for construction and
rehabilitation projects has not been the revenue collected from the
fuel tax but the limited level of funding appropriated from the IWTF.
It is time to seriously address the backlog and to appropriate funds to
finish the projects underway.
NMA reviewed the proposed fiscal year 2005 request for the U.S.
Army Corps of Engineers and the Civil Works Program and has the
following general recommendations.
--A minimum of $5.5 billion should be appropriated in fiscal year
2005 for the Civil Works Program. This level balances the need
to address the significant project backlog and the capability
of the Corps with our Nation's needs for jobs, economic growth,
homeland security and national defense.
--A level of $150 million should be appropriated from the Inland
Waterways Trust Fund to be matched by an equal expenditure from
the general fund for the construction and major rehabilitation
of locks and dams on the inland waterways system. By
maintaining this level of appropriations for the next 10 years,
the surplus in the Trust Fund can be reduced to more
appropriate levels and timely completion of these required
navigation projects will accelerate the national economic
benefits from the projects and minimize cost increases.
--The fiscal year 2005 appropriations for the Corps' General
Investigations account should be increased to $200 million. The
proposed fiscal year 2005 level of $90.5 million will not
permit the Corps to undertake any new studies. These studies
are critical to ascertaining and developing future projects. It
takes time to complete these projects and while there are
issues related to new construction starts, projects should be
in the pipeline and ready should funds be available.
--The fiscal year 2005 proposed funding in the amount of $1.926
billion for the Corps' Operations and Maintenance functions
should be increased. At the beginning of fiscal year 2004, it
was estimated that critical maintenance backlog was $1.01
billion. This is a $127 million or 12.7 increase from the
previous year. It is anticipated the backlog will grow to $1.1
billion under the administration's fiscal year 2005 request.
This increase is of great concern given that the backlog was
approximately $200 million in fiscal year 1998. Currently, more
than half of the locks and dams on the system are 50 years
older or more. With the funding constraints for new
construction and rehabilitation projects, it is imperative that
existing locks and dams be maintained. Delaying necessary
maintenance impacts the ability to move commerce efficiently,
exasperates further deterioration and accelerates the need for
major rehabilitation and possibly at higher costs than
necessary.
The problems of an aging system were exemplified at Greenup Locks
and Dam when significant problems were encountered during ongoing
repairs to the gates on the main chamber. What began on September 8,
2004 as a scheduled 3-week outage lasted 54 days and cost the
navigation industry an estimated $14 million in lost revenue due to
significant delays. For Dayton Power and Light, the delays cost $7
million to find alternative rail transportation for its coal.
NMA'S FISCAL YEAR 2005 PROJECT APPROPRIATIONS LEVELS NEEDING ADDITIONAL
FUNDS
Construction and Rehabilitation Projects
Olmsted Locks & Dam--Fiscal Year 2005 Request: $75 million,
Efficient Funding Level: $110 million
According to the U.S. Army Corps of Engineers Waterborne Commerce
Statistics for 2001, more tonnage passes through this point than any
other place in the inland waterways system with 96.7 million tons
valued at $20 billion in 2001. Coal comprises 25 percent of the
tonnage, moving to more than 50 power plants on the Ohio River System
and 17 power plants in eight States on the Upper or Lower Mississippi
River. The total project cost is $1.40 billion with a balance of $800
million. The project is 6 years behind schedule with lost benefits of
$2.7 billion. If the project continues to be funded at constrained
levels and not at efficient funding levels, the project could be
delayed another 8 years with a total of loss of $7.2 billion in
navigation benefits.
McAlpine Locks--Fiscal Year 2005 Request: $58 million,
Efficient Funding Level: $120 million
According to the U.S. Army Corps of Engineers Waterborne Commerce
Statistics for 2001, more than 55 million tons of commodities valued at
nearly $11.7 billion were shipped through the locks. With 20 million
tons, coal was the leading commodity comprising 37 percent of all
shipments. Thirteen million tons went to 30 power plants in 8 States.
The total project cost is $350 million with a balance of $241 million.
The project is 5 years behind schedule with lost benefits of $228
million. If the project continues to be funded at constrained levels,
it could be delayed another 5 years (2012) resulting in an additional
loss of $163 million in navigation benefits.
Locks & Dams 2, 3 and 4--Fiscal Year 2005 Request: $31
million, Efficient Funding Level: $60 million
According to the U.S. Army Corps of Engineers Waterborne Commerce
Statistics for 2001, almost 22.2 million tons of commodities valued at
$1.7 billion where shipped through any or all of the locks. Coal
comprised 86 percent of the tonnage with 19.2 million tons of coal
moving through the locks. More than 7.2 million tons went to 23 power
plants in 7 States. The value of the coal was almost $1.6 billion. The
total cost is $750 million with a balance of $500 million. The project
is 9 years behind schedule resulting in $870 million in lost navigation
benefits. If the project continues to be funded at constrained levels,
the project could be further delayed to 2020 and a total of $1.2
billion in lost navigation benefits.
Marmet Locks & Dams--Fiscal Year 2005 Request: $50 million,
Efficient Funding Level: $75 million
The U.S. Army Corps of Engineers Waterborne Commerce Statistic for
2001 indicate 17.1 million tons of commodities valued at $802 million
were shipped through the locks. Coal shipments comprised 95 percent of
all shipments with 16.1 million tons moving through Marmet. The project
cost is $333 with a 2010 completion date (originally 2007). There is a
balance of $219 million. Marmet has already experienced a 2-year
completion delay and continued constrained funding levels, the project
could be delayed another 5 years at loss of $201 million in navigation
benefits.
Kentucky Lock--Fiscal Year 2005 Request: $25 million,
Efficient Funding Level: $55 million
The U.S. Army Corps of Engineers Waterborne Commerce Statistics for
2001 indicate 35 million tons of commodities valued at $6.2 billion
moved through the lock. Coal was the number one commodity with 12.6
million tons or 36 percent of all shipments. The value was almost $500
million. The coal moved to 9 power plants in the south including
several owned by the Tennessee Valley Authority. Total project cost is
$642 million. The project is already 5 years behind schedule. If the
project continues to be funded at constrained levels then the project
could be delayed until 2025 with $780 million in lost navigation
benefits.
Preconstruction Engineering and Design
J.T. Myers Locks & Dam--Fiscal Year 2005 Request: $700,000,
Efficient Funding Level: $2 million.
Surveys
Emsworth, Dashields & Montgomery Lock and Dams Fiscal Year 2005
Request: $3.1, Efficient Funding Level: $1.5 million.
CONCLUSION
NMA is very concerned that the Nation's inland waterways system is
not receiving sufficient funds in the fiscal year 2005 budget to keep
critical navigation projects on schedule and to address the very large
maintenance backlog for existing navigation projects. As a country, we
cannot afford to neglect the continued improvement and maintenance of
our Federal navigation system. Failure to continue our investment and
commitment to all aspects of our marine system will have serious long-
term consequences for our Nation's economic health, safety and
security.
______
Prepared Statement of the Board of Commissioners of the Pontchartrain
Levee District
FLOOD CONTROL, NAVIGATION, HURRICANE PROTECTION AND WATER RESOURCE
PROJECTS
------------------------------------------------------------------------
Project Recommended
------------------------------------------------------------------------
General Investigations:
Amite River & Tributaries Bayou Manchac, LA......... $800,000
West Shore, Lake Pontchartrain & Vicinity, LA, St. 400,000
John the Baptist Parish............................
General Construction:
Lake Pontchartrain & Vicinity, LA (Hurricane 22,000,000
Protection)........................................
------------------------------------------------------------------------
COMMENTS ON PROJECTS
Lake Pontchartrain & Vicinity, LA
Around Lake Pontchartrain there are several segments under
construction with this major title. All segments are nearing completion
except St. Charles Parish Hurricane Protection of which the local
sponsor is the Pontchartrain Levee District. The St. Charles project
has 10 miles of levee, 5 major floodgate structures and a construction
cost of $100 million. If Congress provides maximum funding capability
for 2004 and 2005, then the first lift levees would be complete and
much of the second lift and all structures can be completed. A closed
system would be complete, except for some second lift levees, by the
2005 hurricane season. Of the recommended appropriations requested
above for Lake Pontchartrain and Vicinity, about $6,000,000 could be
scheduled for the St. Charles Parish segment. Any reduction in the
recommended budget would certainly reduce the amount that would be
assigned to St. Charles Parish and result in a disappointing slow down.
Non-Federal funds for participation are in place now.
West Shore, Lake Pontchartrain & Vicinity, LA, St. John the Baptist
Parish
This segment is currently under study with the Pontchartrain Levee
District acting as local sponsor. Preliminary indications are the
hurricane protection project will have 18 miles of levee and 3 drainage
pump stations. The Feasibility Study should be completed in fiscal year
2004. Protection will be provided from the west levee of the Bonnet
Carre Floodway westward to the LaPlace area, and will include
protection of portions of I-10, I-55 and U.S. 51, designated hurricane
evacuations routes for this area and the New Orleans Metropolitan area.
This intersection has been previously flooded from storm tides.
Amite River & Tributaries, Bayou Manchac, LA
This investigation is being made as a result of a number of homes
being flooded from rains produced by tropical storm Allison in late May
and early June 2001 along the Bayou Manchac Watershed. A few homes
remained flooded for as much as a month or more because of very slow
receding waters. A highly sensitive area of Spanish Lake and
surrounding swamp also remained flooded for an extensive period which
caused extensive ecosystem damages. The affected area covers portions
of Ascension, Iberville and East Baton Rouge parishes and all have
joined with the Pontchartrain Levee District to provide non-Federal
funding with the Levee District acting as local sponsor.
COMMENTS
The Pontchartrain Levee District has full realization of the
necessity of keeping these subcommittees advised of current and future
needs for Federal monetary support on vital items of the MR&T Flood
Control Project. Beginning in 1995 the subcommittees refused to give
audience to our pleadings. This year no oral testimony will be heard.
Again, this is a great travesty of justice. Such actions seriously
erode the partnership that has been built between Congress, the Corps
of Engineers and local sponsors. We trust this pattern will revert back
to the practice of hearing our delegation.
CONCLUSION
The Board of Commissioners, Pontchartrain Levee District,
compliments the Subcommittees on Energy and Water Development for its
keen understanding of real needs for the MR&T Flood Control Project
along with hurricane protection and efficient, alert actions taken to
appropriate funds for the many complex requirements. We endorse
recommendations presented by the Association of Levee Boards of
Louisiana, Department of Transportation and Development, Mississippi
Valley Flood Control Association and Red River Valley Association. The
Board of Commissioners desires our statement be made a part of the
record.
______
Prepared Statement of the Board of Commissioners of the Pontchartrain
Levee District
MISSISSIPPI RIVER & TRIBUTARIES PROJECT
------------------------------------------------------------------------
Project Recommended
------------------------------------------------------------------------
Mississippi River & Tributaries: Flood Control Project.. $435,000,000
------------------------------------------------------------------------
COMMENTS ON PROJECTS
Mississippi River & Tributaries Flood Control Project
History.--The Mississippi River and Tributaries Project (MR&T) was
authorized following the Record Flood of 1927 that inundated some
26,000 square miles of the fertile and productive land in the Alluvial
Valley of the Mississippi River, left 700,000 people homeless, stopped
all East/West Commerce and adversely affected both the Economy and
Environment of the entire Nation.
The MR&T Project has prevented over $180 billion in flood damages
for an investment of less that $70 billion and in addition the Nation
derives about $900 million in Navigation Benefits each year due to the
MR&T.
The Project is not complete and we cannot pass another event as
great as the 1927 Flood safety to the Gulf, this is an Historical
Event--not the much greater Project Flood.
Levees.--The Mississippi River and Tributaries Flood Control
Project has been under construction as an authorized project for about
76 years, and yet there are a number of segments not yet complete.
Although most levees are complete to grade and section in south
Louisiana and extensive reach from the Old River Control Structure in
lower Concordia Parish upstream to the Lake Providence area is still
below grade. Should these levees be overtopped during a major flood,
those people in south Louisiana know full well those flood waters are
going to head southward. Other items not yet complete are slope
protection and crown surfacing. It is recommended that a minimum of
$50,645,000 be appropriated for Mississippi River Levees.
Channel.--The second item of indispensable importance to the
Pontchartrain Levee District and the State of Louisiana is Channel
Improvements. Main line levees must be protected from caving banks
throughout this lower river reach where extremely narrow battures are
the last line of defense against levee crevasses and failures. If
caving banks are not controlled the only answer is ``setback''. Simply
stated there is no room remaining for levee setbacks in the
Pontchartrain Levee District. Revetment construction must be annually
funded to prevent levee failures, land losses and relocations. This
item also benefits the 55-foot depth navigation channel. The
Pontchartrain Levee District recommends at least $44,017,000 be
appropriated for fiscal year 2004 for Mississippi River Channel
Improvements.
Total Appropriation Request for MR&T.--The $435 million we are
requesting for fiscal year 2004 appropriations for the MR&T Project is
the minimum amount we consider necessary to continue with vital on-
going construction work and to do the barest amount of maintenance work
that is required to prevent further deterioration of the Federal
investment already made to our Flood Control and Navigation Work and to
continue to work of restoring and protecting our natural environmental
including providing for adequate water supply. The total appropriation
we are requesting is attached.
Opposition.--We strongly oppose the administration's recommendation
in its fiscal year 2004 budget submission to use funds from the INLAND
WATERWAYS TRUST FUND to pay for a part of the Operations and
Maintenance Cost of the Inland Waterways. The Trust Fund was
established in 1978 to make available monies for Construction and
Rehabilitation for navigation on the Inland and Coastal Waterways, not
for Operations and Maintenance. If Congress allows this recommendation
the Trust Fund would be drained in a short period of time and the 50
percent share to pay for Construction for Navigation would not be
available unless the tax on fuel used by tow-boats was raised, some day
doubled, which would make it extremely difficult for barge operators to
continue their operations and making it more expensive for farmers to
get their products to market and for the public to realize savings in
transportation cost for bulk commodities such as fuel, oil, gasoline
and other items shipped by barge.
We are also strongly opposed to any action that would transfer all
or any part of the U.S. Army, Corps of Engineers Civil Works mission to
other agencies or department of the Federal Government. It has been
reported that the administration would desire to transfer the Corps
NAVIGATION program to the Department of Transportation, FLOOD CONTROL
AND ENVIRONMENTAL RESTORATION to the Department of the Interior, and
the REGULATORY PROGRAMS to EPA. The U.S., Army, Corps of Engineers has
rendered extremely valuable services to this Nation since 1802 (over
200 years). The Corps has created an Inland Waterways System that is
the envy of the rest of the world. This commercial transportation
system is critical to the Nation's economy and environmental well-being
and part of this system is used to deploy military equipment in support
of the war on terrorism. The Corps has also been in the forefront to
provide Flood Control and Environmental Restoration Projects, they have
also supported our troops in every armed conflict this Nation has
engaged in. It would be a serious mistake of Nation-wide impact to
spread the functions of the Corps into several parts and across the
Federal bureaucracy. This Nation would lose a wonderful asset that we
have enjoyed for many, many years.
We are strongly opposed to any proposal to ``out-source'' or
contract-out any of the present positions in the Corps of Engineers'
Civil Works function. The Secretary of the Army has proposed that 90
percent of all Corps of Engineers' positions be contracted out, this
would eliminate approximately 32,000 current employees and make it
almost impossible to continue with our work.
Comments
The Pontchartrain Levee District has full realization of the
necessity of keeping these subcommittees advised of current and future
needs for Federal monetary support on vital items of the MR&T Flood
Control Project. Beginning in 1995 the subcommittees refused to give
audience to the Mississippi Valley Flood Control Association. This year
no oral testimony will be heard. Again, this is a great travesty of
justice. Such actions seriously erode the partnership that has been
built between Congress, the Corps of Engineers and local sponsors.
We trust that this pattern will revert back to the 63 year practice
of hearing our delegation.
Conclusion
The Board of Commissioners, Pontchartrain Levee District,
compliments the Subcommittees on Energy and Water Development for its
keen understanding of real needs for the MR&T Flood Control Project
along with Hurricane Protection and efficient, alert actions taken to
appropriate funds for the many complex requirements. We endorse
recommendations presented by the Association of Levee Boards of
Louisiana, Department of Transportation and Development, Mississippi
Valley Flood Control Association and Red River Valley Association. The
Board of Commissioners desires our statement be made a part of the
record.
______
Prepared Statement of the Red River Valley Association
Mr. Chairman and members of the committee, I am Wayne Dowd, and
pleased to represent the Red River Valley Association as its President.
Our organization was founded in 1925 with the express purpose of
uniting the Citizens of Arkansas, Louisiana, Oklahoma and Texas to
develop the land and water resources of the Red River Basin.
The Resolutions contained herein were adopted by the Association
during its 79th Annual Meeting in Bossier City, Louisiana on February
19, 2004, and represent the combined concerns of the citizens of the
Red River Basin area as they pertain to the goals of the Association.
The President's budget included $4.215 billion for civil works
programs, which is $700 million (14.3 percent) less than what the Corps
expended in fiscal year 2004 ($4.905 million). Again, the Corps took
the biggest reduction than any of the other major Federal agencies.
This does not come close to the real needs of our Nation. A more
realistic funding level to meet the requirements for continuing the
existing needs of the civil works programs is $5.5 billion in fiscal
year 2005. The traditional programs, inland waterways and flood
protection remain at the low, unacceptable level as in past years.
These projects are the backbone to our Nation's infrastructure for
waterways, flood control and water supply. We remind you that civil
works projects are a true ``jobs program'' in that 100 percent of
project construction is contracted to the private sector, as is much of
the architect and engineer work. Not only do these funds provide jobs,
but provide economic development opportunities for our communities to
grow and prosper.
We are very concerned with the way in which the administration has
determined what they term ``low use waterways''. Included in the fiscal
year 2005 Civil Works Budget, published February 2004, is a table
indicating ``net benefits/current costs'' and ``remaining benefits/
remaining costs''. The J. Bennett Johnston Waterway, LA is shown at the
bottom of the table with an unfavorable ratio. Nowhere in the document
do they explain the criteria used for these ratios. This is the
criterion used to justify the priorities to fund waterway projects and
we do not agree with it.
If they are using ``ton-miles'', as we suspect, this is just a
small factor of determining the success of a waterway. Ton-miles is
simply the tons moved the length of the waterway. It does not give
credit to the waterway for the miles moved to the final destination,
for outbound cargo, or origin, for inbound cargo. Just using tonnage
moved on a waterway neglects the main benefit that justified the
project, transportation cost savings. Currently there is no analysis to
consider ``water compelled rates'' (competition with rail). We know
that there are industries not using our waterway because the rail rates
dropped, to match the waterborne rates, the same year our waterway
became operational. If our waterway were discontinued the rail rates
would increase. Many industries have experienced great transportation
savings without using the waterway.
The main problem is that there is no post-project evaluation for
navigation projects. We support the development of such an evaluation
and volunteer our waterway and our efforts to develop one. We request
that both Houses of Congress direct that this be accomplished. The
Corps of Engineers should take the lead to develop a true evaluation
that considers all benefits of a waterway. We also believe any
evaluation adopted must have input from and be validated by the
administration, Congress and industry.
The current criteria used to prioritize funding for projects, both
Construction General and Operations and Maintenance, is incomplete and
inaccurate. Too much money has been expended to use an evaluation that
is unfair and disregards the true benefits realized from these waterway
projects.
We do not support any efforts to increase the benefit to cost ratio
for projects above 1.0 and we do not support increasing the local
sponsor's cost sharing requirements. This is not ``Corps reform,'' it
is an initiative to eliminate the civil works program. We do support
true reform that would make civil works projects less expensive and
faster to complete. Corps reform should make the Corps of Engineers
more efficient, less expensive and faster in the execution of civil
works studies and completion of projects, not eliminate the program.
I would now like to comment on our specific requests for the future
economic well being of the citizens residing in the four-State Red
River Basin regions.
Navigation.--The J. Bennett Johnston Waterway is living up to the
expectations of the benefits projected. We are extremely proud of our
public ports, municipalities and State agencies that have created this
success. The four public ports had a 20 percent increase in tonnage
from calendar year 2002 to calendar year 2003. New opportunities were
announced in calendar year 2003 at each of the ports, which will
further increase annual tonnage. You are reminded that the Waterway is
not complete, 6 percent remains to be constructed, $118 million. We
appreciate Congress's appropriation level in fiscal year 2004 of $10.4
million, however, the President's fiscal year 2005 budget drastically
cuts that to $4 million, which is unacceptable. There is a capability
for $20 million of work, but we realistically must have a minimum of
$10-15 million to keep the project moving toward completion.
The RRVA formed a Navigation Committee for industry, the Corps of
Engineers and Coast Guard to partner in making our Waterway a success.
In calendar year 2003 we succeeded in getting electronic charts
completed and they are now in use. Permanent channel markers have also
been completed. Both of these initiatives will provide additional aids
to navigation necessary to insure safe and efficient navigation,
especially during high water events, when commercial operations have
ceased in past years.
Now that the J. Bennett Johnston Waterway is reliable year round we
must address efficiency. Presently a 9-foot draft is authorized for the
J. Bennett Johnston Waterway. Our Waterway feeds into the Mississippi
River, Atchafalaya River and Gulf Inter-coastal Canal, which are all
authorized at a 12-foot draft. A 12-foot draft would allow an
additional one-third cargo capacity, per barge, which will greatly
increase the efficiency of our Waterway and reduce transportation
rates. This one action would have the greatest, positive impact to
reduce rates to a competitive level that would bring more industries to
use waterborne transportation. We request that the Corps conduct a
reconnaissance study, to evaluate this proposal, at a cost of $100,000.
The feasibility study to continue navigation from Shreveport-
Bossier City, Louisiana into the State of Arkansas will be completed in
calendar year 2004. We appreciate that Congress appropriated adequate
funding to complete this study. There is great optimism that the study
will recommend a favorable project. This region of SW Arkansas and NE
Texas continues to suffer major unemployment and this navigation
project, although not the total solution, will help revitalize the
economy. We request funding $400,000 to initiate planning, engineering
and design, PED.
Bank Stabilization.--One of the most important, continuing
programs, on the Red River is bank stabilization in Arkansas and North
Louisiana. We must stop the loss of valuable farmland that erodes down
the river and interferes with the navigation channel. In addition to
the loss of farmland is the threat to public utilities such as roads,
electric power lines and bridges; as well as increased dredging cost in
the navigable waterway. These bank stabilization projects are
compatible with subsequent navigation and we urge that they be
continued in those locations designated by the Corps of Engineers to be
the areas of highest priority. We appreciated the Congressional funding
in fiscal year 2004 and request you fund this project at a level of $10
million in fiscal year 2005.
Flood Control.--You will recall that in 1990 major areas of
northeast Texas, Southwest Arkansas and the entire length of the Red
River in Louisiana were ravaged by the worst flooding to hit the region
since 1945 and 1957. More than 700,000 acres were flooded with total
damages estimated at $20.4 million. However, it could have been much
worse. The Corps of Engineers estimates that without the flood control
measure authorized by Congress over the past several decades an
additional 1.3 million acres would have been flooded with an estimated
$330 million in additional flood damage to agriculture and urban
developments.
We continue to consider flood control a major objective and request
you continue funding the levee rehabilitation projects ongoing in
Arkansas. Five of eleven levee sections have been completed and brought
to Federal standards. Appropriations of $4 million will construct two
more levee sections in Lafayette County, AR.
The levees in Louisiana have been incorporated into the Federal
system; however, they do not meet current safety standards. These
levees do not have a gravel surface roadway, threatening their
integrity during times of flooding. It is essential for personnel to
traverse the levees during a flood to inspect them for problems.
Without the gravel surface the vehicles used cause rutting which can
create conditions for the levees to fail. A gravel surface will insure
inspection personnel can check the levees during the saturated
conditions of a flood. Funding has been appropriated and approximately
50 miles of levees in the Natchitoches Levee District will be completed
this year. We request $2 million to continue this important project in
other parishes.
Clean Water.--Nearly 3,500 tons of natural salts, primarily sodium
chloride, enter the upper reaches of the Red River each day, rendering
downstream waters unusable for most purposes. The Truscott Brine Lake
project, which is located on the South Fork of the Wichita River in
King and Knox Counties, Texas became operational in 1987. An
independent panel of experts found that the project not only continues
to perform beyond design expectations in providing cleaner water, but
also has an exceptionally favorable cost benefit ratio. In fiscal year
1995 $16 million dollars was appropriated by the administration, to
accelerate engineering design, real estate acquisition and initiate
construction of the Crowell Brine Dam, Area VII and Area IX.
Due to a conflict over environmental issues, raised by the U.S.
Fish and Wildlife Service, completion of the SFEIS was delayed pending
further study to determine the extent of possible impacts to fish and
wildlife, their habitats and biological communities along the Red River
and Lake Texoma. In an effort to resolve these issues and insure that
no harmful impact to the environment or ecosystems would result, a
comprehensive environmental and ecological monitoring program was
implemented. It evaluates the actual impacts of reducing chloride
concentrations within the Red River watershed. This base line data is
crucial to understanding the ecosystem of the Red River basin west of
Lake Texoma and funding for this must continue.
The Assistant Secretary of the Army (Civil Works), in October 1998,
agreed to support a re-evaluation of the Wichita River Basin tributary
of the project. The re-evaluation report will be completed in fiscal
year 2004. Completion of this project will reclaim Lake Kemp as a
usable water source for the City of Wichita Falls and the region. This
project will provide improved water quality throughout the four States
of the Red River providing the opportunity to use surface water and
reduce dependency on ground water. We request appropriations of
$2,500,000 to continue this important environmental monitoring and to
complete plans and specifications of the Wichita River control
features.
Water Supply.--Northwest Texas has been overrun with non-native
species of brush and mesquite. It now dominates millions of acres of
rangelands and has negatively impacted water runoff. Studies have
indicated that brush management could increase runoff by as much as 30
percent to 40 percent. This would be of great value in opportunities
for more surface water use and less dependency on ground water. Other
benefits include an ecological diversity of plant and animal species,
range fire control and cattle production. A $100,000 reconnaissance
study would determine if there is a Federal interest and what magnitude
these benefits would be.
Lake Kemp, just west of Wichita Falls, TX, is a water supply for
the needs of this region. Due to siltation the available storage of
water has been impacted. A $750,000 reallocation study is requested to
determine water distribution needs and raising the conservation pool.
$375,000 is requested in fiscal year 2005 to initiate this 2-year
study.
Operation & Maintenance.--We appreciate the support of your
subcommittee to support navigation to Shreveport/Bossier City, which is
now providing a catalyst to our industrial base, creating jobs and
providing economic growth. We request that O&M funding levels remain at
the expressed Corps capability to maintain a safe, reliable and
efficient transportation system.
Our major project for O&M is the J. Bennett Johnston Waterway. From
this project four public ports and three private terminals have been
established. The tonnage at the public ports increased by 20 percent
from calendar year 2002 to calendar year 2003. Even though we continue
to show growth the administration continues to reduce our O&M budget
and not include maintenance dredging. Without dredging the Waterway
would effectively close down terminating our ports and terminal. The
President's budget included $10,600,000; however, a minimum of
$14,000,000 is required to address our annual dredging needs and
operational costs for the five locks and dams.
Full O&M capability levels are not only important for our Waterway
project but for all our Corps projects and flood control lakes. The
backlog of critical maintenance only becomes worse and more expensive
with time. We urge you to appropriate funding to address this serious
issue at the expressed full Corps capability. The ``Summary of Fiscal
Year 2004 Requests'', following this testimony, lists our major O&M
projects and the level needed to address this issue.
We are sincerely grateful to you for the past support you have
provided our various projects. We hope that we can count on you again
to fund our needs and complete the projects started that will help us
diversify our economy and create the jobs so badly needed by our
citizens. We have included a summary of our requests for easy
reference.
Thank you for the opportunity to present this testimony and project
details of the Red River Valley Association on behalf of the
industries, organizations, municipalities and citizens we represent
throughout the four-State Red River Valley Region. We believe that any
Federal monies spent on civil work projects are truly investments in
our future and will return several times the original investment in
benefits that will accrue back to the Federal Government.
Grant Disclosure.--The Red River Valley Association has not
received any Federal grant, sub grant or contract during the current
fiscal year or either of the 2 previous fiscal years.
______
Prepared Statement of the Crescent City Harbor District
The Crescent City Harbor District is requesting $3 million in
funding in the fiscal year 2005 Energy and Water Development
appropriations bill. These funds are needed for maintenance dredging of
our harbor and for completing our Dredging Materials Management Plan.
Dredging funds are critical for the future of our harbor. Crescent
City has long been a key port for the landing of Pink shrimp, Dungeness
crab, and groundfish. In 2001, commercial landings exceeded $6 million.
In 2002, even with reduced fishing opportunities, our fleets landed
over five and $500,000 worth of seafood. The most recent Dungeness crab
season, from December 2003 until the present, very likely set a record
for production and value. Although some groundfish and Salmon species
are at relatively low levels, many others are abundant. We look forward
to harvesting the sustainable yield of our natural resources once the
weaker stocks are rebuilt. But we must dredge the harbor now to take
advantage of these future opportunities.
Over the years our community has made a substantial investment in
the harbor. Our major dock is called ``Citizens Dock'' because it was
built entirely by local volunteers in 1950. Since then, we have built a
modern boat basin, fish processing plants, and a superb vessel repair
facility. Our harbor is the safest, most convenient harbor in Northern
California for both recreational and commercial fishermen. But the
economic viability of these facilities depends on dredging the harbor.
Currently we are in the midst of developing a master plan that will
help identify and then implement new opportunities to diversify the
economic base of our harbor. Both the City of Crescent City and the
County of Del Norte are actively supporting our master plan efforts. We
hope to identify several opportunities that will expand and revitalize
our struggling local economy. But the success of our planning process
depends on dredging the harbor.
All our efforts, investments, and plans will come to nothing if we
cannot dredge our harbor. We look forward to working together to ensure
that dredging funds are in place in next year's appropriations cycle so
that our harbor can remain a key part of the economy of Del Norte
County and Northern California.
______
Letter From the Arizona Power Authority
Phoenix, Arizona, March 23, 2004.
Senate Subcommittee on Energy and Water Development,
126 Dirksen Senate Office Bldg., Washington, DC 20510.
Re: Increased security costs at Reclamation, Corps of Engineers and
Western Area Power Administration facilities
Dear Chairman Domenici and Ranking Member Reid: Enclosed please
find a copy of a resolution passed by the Arizona Power Authority
Commission at its March meeting urging that increased costs for
security at Hoover Dam and similar Federal projects be made non-
reimbursable. Would you please enter this letter and the attached
resolution in the record of your proceedings.
Sincerely,
Joseph W. Mulholland,
Executive Director.
arizona power authority resolution no. 04-2
security costs at hoover dam and other federal power facilities
Hoover Dam, one of the most famous structures in the world, is one
of a number of Federal dams that were developed to provide benefits to
millions of citizens in the Western United States, including flood
control, irrigation, municipal and industrial water supplies,
hydropower generation, recreation and environmental benefits.
Ensuring the safety and security of Hoover Dam and other similar
Federal projects is of vital importance to all of the citizens of the
United States.
The Arizona Power Authority and other State agencies and consumer-
owned electric utilities already shoulder the majority of the
reimbursable cost of these facilities, including subsidizing irrigation
features, environmental programs, and repayment of the Federal debt
associated with construction, operation, maintenance and replacements.
NOW THEREFORE, BE IT RESOLVED:
That the Commissioners of the Arizona Power Authority call upon the
Federal Government to ensure that all costs associated with the safety
and security of Hoover Dam and similar Federal facilities in the
aftermath of the events of September 11, 2001, be treated as
nonreimbursable and that payment of such costs be funded through
Federal appropriations as a national obligation.
UNANIMOUSLY ADOPTED by the Arizona Power Authority Commission this
sixteenth day of March 2004.
______
Prepared Statement of the St. Francis Levee District of Arkansas
EXECUTIVE SUMMARY
The Mississippi Valley Flood Control Association Fiscal Year 2005
Civil Works Budget, Mississippi River and Tributaries Appropriations--
Requesting Appropriations of $9,500,000 for Construction and $8,805,000
for Maintenance and Operation in the St. Francis Basin Project and a
total of $450,000,000 for the Mississippi River and Tributaries
Project.
BACKGROUND INFORMATION
My name is Rob Rash, and my home is in Marion, Arkansas, located on
the West side of the Mississippi River and in the St. Francis Basin. I
am the Chief Engineer of the St. Francis Levee District of Arkansas.
Our District is the local cooperation organization for the Mississippi
River and Tributaries Project and the St. Francis Basin Project in
Northeast Arkansas. Our District is responsible for the operation and
maintenance of 160 miles of Mississippi River Levee and 75 miles of St.
Francis River Tributary Levee in Northeast Arkansas.
The St. Francis Basin is comprised of an area of approximately
7,550 square miles in Southeast Missouri and Northeast Arkansas. The
basin extends from the foot of Commerce Hills near Cape Girardeau,
Missouri to the mouth of the St. Francis River, 7 miles above Helena,
Arkansas, a total distance of 235 miles. It is bordered on the east by
the Mississippi River and on the West by the uplands of Bloomfield and
Crowley's Ridge, having a maximum width of 53 miles. The Mississippi
River and Tributaries Project and the St. Francis Basin Project provide
critical flood protection to over 2,500 square miles in Northeast
Arkansas alone. This basin's flood control system is the very lifeblood
of our livelihood and prosperity. Our resources and infrastructure are
allowing the St. Francis Basin and the Lower Mississippi Valley to
develop into a major commercial and industrial area for this great
Nation. The basin is quickly becoming a major steel and energy
production area. The agriculture industry in Northeast Arkansas and the
Lower Mississippi Valley continues to play an integral role in
providing food and clothing for this Nation. This has all been made
possible because Congress has long recognized that flood control in the
Lower Mississippi Valley is a matter of national interest and security
and has authorized the U.S. Army Corps of Engineers to implement a
flood control system in the Lower Mississippi Valley that is the envy
of the civilized world. With the support of Congress over the years, we
have continued to develop our flood control system in the Lower
Mississippi Valley through the Mississippi River and Tributaries
Project and for that we are extremely grateful.
Although, at the current level of project completion, there are
areas in the Lower Mississippi Valley that are subject to major
flooding on the Mississippi River. The level of funding that has been
included in the President's Budget for the overall Mississippi River
and Tributaries Project is not sufficient to adequately fund and
maintain this project. The level of funding will require the citizens
of the Lower Mississippi Valley to live needlessly in the threat of
major flood devastation for the next 30 years. Timely project
completion is of paramount importance to the citizens of the Lower
Mississippi. Ten and Fifteen Mile Bayou improvements are just one of
many construction projects necessary for flood relief in the St.
Francis Basin. Ten and Fifteen Mile Bayou improvements were
reauthorized by Congress through the Flood Control Act of 1928, as
amended. Section 104 of the Consolidated Appropriation Act of 2001
modified the St. Francis Basin to expand the project boundaries to
include Ten and Fifteen Mile Bayous and shall not be considered
separable elements. Total project length of 38 miles includes Ten and
Fifteen Mile Bayou, Ditch No. 15 and the 10 Mile Diversion Ditch that
provide flood control for West Memphis and Vicinity. Without additional
funds, construction would be delayed and West Memphis and Vicinity will
continue to experience record flooding as seen December 17, 2001. West
Memphis and Vicinity would experience immediate flood relief when the
first item of construction is completed.
U.S. ARMY CORPS OF ENGINEERS
We are strongly opposed to any action that would transfer any part
or the entire U.S. Army Corps of Engineers Civil Works mission to any
other agency or department of the Federal Government. This agency has
completed and overseen the Civil Works mission since its inception and
has done quite well. Very few of our other governmental bodies can
report and show a return of the taxpayer's investment as the Corps of
Engineers can and has been doing for many years. It has been reported
this administration desires to transfer the Corps Civil Works program
to the Department of Transportation, the Flood Control and
Environmental Restoration to the Department of Interior and the
Regulatory Program to the Environmental Protection Agency. The U.S.
Army Corps of Engineers has rendered extremely valuable services for
this Nation for many years. The Corps has created an inland waterways
system that is the envy of the rest of the world. Our Nation's
commercial transportation system is critical to the Nation's economy
and the environmental well being and part of this system is used to
transport military equipment in support of the war on terrorism. The
Corps has also been in the forefront to provide flood control and
environmental restoration projects and have supported our troops at
every armed conflict this Nation has engaged in. In our opinion, it
will be a serious mistake and have a negative Nation-wide impact to
spread the functions of the Corps into several parts across a Federal
bureaucracy. This Nation would lose a wonderful asset and one we have
enjoyed for over 200 years.
PROPOSED FUNDING
We support the amount of $450,000,000 requested by the Mississippi
Valley Flood Control Association for use in the overall Mississippi
River and Tributaries Project. This is the minimum amount that the
Executive Committee of the Association feels is necessary to maintain a
reasonable time line for completion of the overall Mississippi River
and Tributaries Project. Also, the amounts that have been included in
the President's Budget for the St. Francis Basin Project; construction,
operation and maintenance have not been sufficient to fund critical
projects. These declined amounts have resulted in a significant backlog
of work within the St. Francis Basin. Therefore, our District is
requesting additional capabilities of $9,500,000 for the St. Francis
Basin Project construction funds and $8,805,000 for the St. Francis
Basin operation and maintenance funds. The amounts requested for the
St. Francis Basin Project are a part of the total amounts requested for
the Mississippi River and Tributary Appropriations of the Civil Works
Budget.
SUMMATION
As your subcommittee reviews the Civil Works Budget of Fiscal Year
2005 Appropriations for the Mississippi River and Tributaries Project,
please consider the significance of this project to the Mississippi
Valley and the Nation's economy and infrastructure. As always, I feel
the subcommittee will give due regard to the needs of the Mississippi
River Valley as it considers appropriations for the Mississippi River
and Tributaries Project. I would like to sincerely thank the
subcommittee for its past and continued support of the Mississippi
River and Tributaries Project.
______
Prepared Statement of the City of Virginia Beach, Virginia
I am writing on behalf of the City of Virginia Beach, Virginia, to
request funding for three critical projects in the fiscal year 2005
Energy and Water Development Appropriations Bill. These three projects
are:
--$7 million for the Virginia Beach Erosion Control and Hurricane
Protection Project under the Construction account of the Army
Corps of Engineers.
--$5.5 million for the City's Beach Renourishment for Sandbridge
Beach under the Construction account of the Army Corps of
Engineers.
--$1.25 million for the maintenance of Rudee Inlet under the
Operation and Maintenance account of the Army Corps of
Engineers.
virginia beach erosion control and hurricane protection project
Funding for this project was originally authorized under the Water
Resources Development Act of 1992, and a Public Cooperation Agreement
was reached and signed between the City and the Army Corps of Engineers
in August 1993. The Water Resources Development Act of 1992 authorized
$112 million for Virginia Beach Erosion Control and Hurricane
Protection project for the City.
To date, the Federal Government has invested over $80 million for
this project, matched by over $40 million in City funds. The results of
the investment are a magnificent beach and seawall system, providing
flood damage protection for the City's tourism industry infrastructure,
which is important for the economic vitality of the City. The resulting
beach is a showpiece for the region.
The project has proven it works, most recently after Hurricane
Isabel. The 100-year hurricane event protection level in this project
did indeed protect the whole commercial beach area with no sustainable
damage. If this project had not been in place there would have been
huge losses.
The Federal Government has a long-term (50-year) commitment with
the City to maintain this project. However, in the President's Fiscal
Year 2005 Budget no funding was included. The Federal and City
government have spent too much money to build this project to let it
all go to waste by not renourishing the beach with sand for protection.
It is important to maintain this project, both to protect the
investments already made and to minimize damages from future storm
events.
BEACH RENOURISHMENT FOR SANDBRIDGE BEACH
The Sandbridge Beach Replenishment project was created after
decades of flood damage from storm events. Once the beach was
replenished, flooding due to storms significantly decreased. The most
recent example of the project's benefit is the reduced damage from
Hurricane Isabel. Our request of $5,500,000 is needed to honor the
previous Federal commitments for the programmed maintenance of these
projects.
The Sandbridge project was first approved by the Army Corps of
Engineers and the North Atlantic Division of the Corps and subsequently
authorized by Congress as a part of the Water Resources Development Act
of 1992. The initial Public Cooperation Agreement was executed on
February 3, 1998.
When the beach was first replenished in 1998, the City funded 100
percent of the total cost ($8.1 million). In 2002, the City covered 35
percent of the cost while the Federal Government covered the remaining
65 percent (total of $12 million). To date, the total amount of money
invested (including City funds and funds from the Federal Government)
is almost $20 million.
As with the Hurricane Protection Project, the President's Fiscal
Year 2005 Budget did not include funding for the Sandbridge Beach
project. It is imperative that the City be able to maintain this
project in order to protect the large number of family homes and rental
properties in the area and minimize overall damages from future storm
events. Today, only due to past efforts, Sandbridge is a vital and
vibrant public beach.
RUDEE INLET
Rudee Inlet, which was authorized under the Water Resources and
Development Act of 1992, is a vital commercial and recreational
resource to the City. But its special significance from a Federal
standpoint is that it is used by the U.S. Navy Special Operations for
training and equipment testing. The Army Corps of Engineers has been
maintaining Rudee Inlet since 1991.
Over the years there has been funding included in the President's
budget for Rudee Inlet, however there was no funding included in the
President's fiscal year 2005 budget. It is important to ensure that the
inlet receives proper funding because failure to continue the
maintenance on Rudee Inlet would negatively impact the City and the
U.S. Navy special operations.
It is vital to the City of Virginia Beach that the Federal
Government maintain funding for these projects. All businesses located
in the City, including hotels and restaurants, along with recreational
activities, military operations, and tourism would be negatively
impacted without the proper maintenance of these projects.
I appreciate your time and consideration regarding this matter.
______
Prepared Statement of the Santa Clara Valley Water District
SOUTH SAN FRANCISCO BAY SHORELINE STUDY
Background.--Congressional passage of the Water Resources
Development Act of 1976, originally authorized the San Francisco Bay
Shoreline Study, and Santa Clara Valley Water District (District) was
one of the project sponsors. In 1990, the U.S. Army Corps of Engineers
(Corps) concluded that levee failure potential was low because the
existing non-Federal, non-engineered levees, which were routinely
maintained by Leslie Salt Company (subsequently Cargill Salt) to
protect their industrial interests, had historically withstood
overtopping without failure. As a result, the project was suspended
until adequate economic benefits could be demonstrated.
Since the project's suspension in 1990, many changes have occurred
in the South Bay. The State and Federal acquisition of approximately
15,000 acres of South Bay salt ponds was completed in early March 2003.
The proposed restoration of these ponds to tidal marsh will
significantly alter the hydrologic regime and levee maintenance
activities, which were assumed to be constant in the Corps' 1990 study.
In addition to the proposed restoration project, considerable
development has occurred in the project area. Many major corporations
are now located within Silicon Valley's Golden Triangle, lying within
and adjacent to the tidal flood zone. Damages from a 1 percent high
tide are anticipated to far exceed the $34.5 million estimated in 1981,
disrupting business operations, infrastructure, and residences. Also,
historical land subsidence of up to 6 feet near Alviso, as well as the
structural uncertainty of existing salt pond levees, increases the
potential for tidal flooding in Santa Clara County.
In July 2002, Congress authorized a review of the Final 1992 Letter
Report for the San Francisco Bay Shoreline Study. The final fiscal year
2004 appropriation for the Corps included funding for a new start
Reconnaissance Study.
Project Synopsis.--At present, large areas of Santa Clara, Alameda
and San Mateo Counties would be impacted by flooding during a 1 percent
high tide. The proposed restoration of the South San Francisco Bay salt
ponds will result in the largest restored wetland on the West Coast of
the United States, and also significantly alter the hydrologic regime
adjacent to South Bay urban areas. The success of the proposed
restoration is therefore dependent upon adequate tidal flood
protection, and so this project provides an opportunity for multi-
objective watershed planning in partnership with the California Coastal
Conservancy, the lead agency on the restoration project. Project
objectives include: restoration and enhancement of a diverse array of
habitats, especially several special status species; tidal flood
protection; and provision of wildlife-oriented public access.
Fiscal Year 2004 Funding.--$100,000 was appropriated in fiscal year
2004 to conduct a Reconnaissance Study.
Fiscal Year 2005 Funding Request.--It is requested that the
congressional committee support an appropriation add-on of $500,000 for
the South San Francisco Bay Shoreline Study to initiate a Feasibility
Study to evaluate integrated flood protection and environmental
restoration.
THOMPSON CREEK RESTORATION PROJECT
Background.--Thompson Creek, a tributary of Coyote Creek, flows
through the City of San Jose, California. Historically, the creek was a
naturally-meandering stream and a component of the Coyote Creek
watershed. The watershed had extensive riparian and oak woodland
habitat along numerous tributary stream corridors and upland savanna.
Currently, these habitat types are restricted to thin sparse pockets in
the Thompson Creek restoration project area.
Significant urban development over the last 20 years has modified
the runoff characteristics of the stream resulting in significant
degradation of the riparian habitat and stream channel. The existing
habitats along Thompson Creek, riparian forest stands, are threatened
by a bank destabilization and lowering of the water table. Recent large
storm events (1995, 1997, and 1998) and the subsequent wet years in
conjunction with rapid development in the upper watershed have resulted
in a succession of high runoff events leading to rapid erosion.
The upstream project limits start at Aborn Road and the downstream
project limit is Quimby Road where Thompson creek has been modified as
a flood Protection project. The project distance is approximately 1
mile.
Status.--In February 2000, the Santa Clara Valley Water District
(District) initiated discussions with U.S. Army Corps of Engineers
(Corps) for a study under the Corps' Section 206 Aquatic Ecosystem
Restoration Program. Based on the project merits, the Corps began
preparation of a Preliminary Restoration Plan (PRP) and subsequent
Project Management Plan (PMP). Approval of the PRP will lead to the
development of a Detailed Project Report (DPR). The DPR will provide
the information necessary to develop plans and specifications for the
construction of the restoration project.
PROJECT TIMELINE
------------------------------------------------------------------------
Date
------------------------------------------------------------------------
Request Federal assistance under Sec. 206 Feb. 2002
Aquatic Ecosystem Restoration Program.
Initiate Study............................. Jan. 2003
Public Scoping Meeting and Local Sept. 2004
Involvement.
Final Detailed Project Report to South May 2006
Pacific Division of Corps.
Initiate Plans and Specifications.......... July 2006
Project Cooperation Agreement signed....... Dec. 2006
Certification of Real Estate............... Mar. 2007
Advertise Construction Contract............ May 2007
Complete Plans and Specifications.......... July 2007
Award Construction Contract................ July 2007
Construction Start......................... Sept. 2007
Complete Physical Construction............. Dec. 2008
------------------------------------------------------------------------
Fiscal Year 2004 Funding.--$100,000 earmark was received in the
fiscal year 2004 Section 206 appropriation to complete the PRP.
Fiscal Year 2005 Funding Recommendation.--It is requested that the
congressional committee support an earmark of $300,000 within the
Section 206 Aquatic Ecosystem Restoration Program.
PAJARO RIVER WATERSHED STUDY
Background.--Pajaro River flows into the Pacific Ocean at Monterey
Bay, about 75 miles south of San Francisco. The drainage area
encompasses 1,300 square miles in Santa Clara, San Benito, Monterey,
and Santa Cruz counties. Potential flood damage reduction solutions
will require cooperation between four counties and four water/flood
management districts. There is critical habitat for endangered wildlife
and fisheries throughout the basin. Six separate flood events have
occurred on the Pajaro River in the past half century. Severe property
damage in Monterey and Santa Cruz counties resulted from floods in
1995, 1997, and 1998. Recent flood events have resulted in litigation
claims for damages approaching $50 million. $20 million in U.S. Army
Corps of Engineers (Corps) flood fight funds have been expended in
recent years.
Status.--Two separate Corps activities are taking place in the
watershed. The first activity is a Corps reconnaissance study
authorized by a House Resolution in May 1996 to address the need for
flood protection and water quality improvements, ecosystem restoration,
and other related issues. The second activity is a General Revaluation
Report initiated in response to claims by Santa Cruz and Monterey
Counties that the 13 mile levee project constructed in 1949 through
agricultural areas and the city of Watsonville is deficient. The
reconnaissance study on the entire watershed was completed by the San
Francisco District of the Corps in fiscal year 2002. The decision to
continue onto a cost-shared feasibility study is currently delayed
pending the Corps resolution of the flooding problems on the lower
Pajaro River (Murphy's Crossing to the Ocean) and defining feasibility
study goals that meet the interests of all Authority members.
Local Flood Prevention Authority.--Legislation passed by the State
of California (Assembly Bill 807) in 1999 titled ``The Pajaro River
Watershed Flood Prevention Authority Act'' mandated that a Flood
Prevention Authority be formed by June 30, 2000. The purpose of the
Flood Prevention Authority is ``to provide the leadership necessary to
. . . ensure the human, economic, and environmental resources of the
watershed are preserved, protected, and enhanced in terms of watershed
management and flood protection.'' The Flood Prevention Authority was
formed in July 2000 and consists of representatives from the Counties
of Monterey, San Benito, Santa Clara, and Santa Cruz, Zone 7 Flood
Control District, Monterey County Water Resources Agency, San Benito
County Water District, and the Santa Clara Valley Water District. The
Flood Prevention Authority Board sent a letter of intent to cost share
a feasibility study of the Pajaro River Watershed to the Corps in
September 2001.
Fiscal Year 2004 Funding.--$100,000 was authorized in fiscal year
2004 for the Pajaro Watershed Feasibility Study.
Fiscal Year 2005 Funding Recommendation.--It is requested that the
congressional committee support an appropriation add-on of $100,000 in
fiscal year 2005 for the Pajaro River Watershed Study.
UPPER GUADALUPE RIVER PROJECT
Background.--The Guadalupe River is one of two major waterways
flowing through a highly urbanized area of Santa Clara County,
California, the heart of Silicon Valley. Historically, the river has
flooded the central district and southern areas of San Jose. According
to U.S. Army Corps of Engineers (Corps) 1998 feasibility study, severe
flooding would result from a 100-year flooding event and potentially
cause $280 million in damages.
The probability of a large flood occurring before implementation of
flood prevention measures is high. The upper Guadalupe River overflowed
in March 1982, January 1983, February 1986, January 1995, March 1995,
and February 1998, causing damage to several residences and businesses
in the Alma Avenue and Willow Street areas. The 1995 floods in January
and March, as well as in February 1998, closed Highway 87 and the
parallel light-rail line, a major commute artery.
Project Synopsis.--In 1971, the Santa Clara Valley Water District
(District) requested the Corps to reactivate an earlier study of
Guadalupe River. From 1971 to 1980, the Corps established the economic
feasibility and Federal interest in the Guadalupe River only between
Interstate 880 and Interstate 280. Following the 1982 and 1983 floods,
the District requested that the Corps reopen its study of the upper
Guadalupe River upstream of Interstate 280. The Corps completed a
reconnaissance study in November 1989, which established an
economically justifiable solution for flood protection in this reach.
The report recommended proceeding to the feasibility study phase, which
began in 1990. In January 1997, the Corps determined that the National
Economic Development (NED) Plan would be a 2 percent or 50-year level
of flood protection rather than the 1 percent or 100-year level. The
District strongly emphasized overriding the NED Plan determination,
providing compelling reasons for using the higher 1 percent or 100-year
level of protection. In 1998, the Acting Secretary of the Army did not
concur to change the basis of cost sharing from the 50-year NED Plan to
the locally preferred 100-year plan, resulting in a project that will
provide less flood protection, and therefore, be unable to reduce flood
insurance requirements and reimbursements, as well as eliminate
recreational benefits and increase environmental impacts. Based on
Congressional delegation requests, the Assistant Secretary of the Army
directed the Corps to revise the Chief's Report to reflect more
significant Federal responsibility. The Corps feasibility study
determined the cost of the locally preferred 100-year plan is $153
million and the Corps NED 50-year plan is $98 million. The District has
requested that the costs of providing 50-year and 100-year flood
protection be analyzed again during the preconstruction engineering
design phase. In a memorandum for the Assistant Secretary of the Army,
dated October 12, 2000, Major General Hans A. Van Winkle, Deputy
Commander for Civil Works, made a similar recommendation.
Fiscal Year 2004 Funding.--$150,000 was authorized in fiscal year
2004 for the Upper Guadalupe River Project to continue preconstruction
engineering and design.
Fiscal Year 2005 Funding Recommendation.--It is requested that the
congressional committee support an appropriation add-on of $3.5 million
in fiscal year 2005 for the Upper Guadalupe River Flood Protection
Project.
LLAGAS CREEK PROJECT
Background.--The Llagas Creek Watershed is located in southern
Santa Clara County, California, serving the communities of Gilroy,
Morgan Hill and San Martin. Historically, Llagas Creek has flooded in
1937, 1955, 1958, 1962, 1963, 1969, 1982, 1986, 1996, 1997, 1998, and
2002. The 1997, 1998, and 2002 floods damaged many homes, businesses,
and a recreational vehicle park located in areas of Morgan Hill and San
Martin. These are areas where flood protection is proposed. Overall,
the proposed project will protect the floodplain from a 1 percent flood
affecting more than 1,100 residential buildings, 500 commercial
buildings, and 1,300 acres of agricultural land.
Project Synopsis.--Under authority of the Watershed Protection and
Flood Prevention Act (Public Law 566), the Natural Resources
Conservation Service completed an economic feasibility study in 1982
for constructing flood damage reduction facilities on Llagas Creek. The
Natural Resources Conservation Service completed construction of the
last segment of the channel for Lower Llagas Creek in 1994, providing
protection to the project area in Gilroy. The U.S. Army Corps of
Engineers (Corps) is currently updating the 1982 environmental
assessment work and the engineering design for the project areas in
Morgan Hill and San Martin. The engineering design is being updated to
protect and improve creek water quality and to preserve and enhance the
creek's habitat, fish, and wildlife while satisfying current
environmental and regulatory requirement. Significant issues include
the presence of additional endangered species including the red-legged
frog and steelhead, listing of the area as probable critical habitat
for steelhead, and more extensive riparian habitat than were considered
in 1982. Project economics are currently being updated as directed by
Corps Headquarters to determine continued project economic viability.
Until 1996, the Llagas Creek Project was funded through the
traditional Public Law 566 Federal project funding agreement with the
Natural Resources Conservation Service paying for channel improvements
and the District paying local costs including utility relocation,
bridge construction, and right of way acquisition. Due to the steady
decrease in annual appropriations for the Public Law 566 construction
program since 1990, the Llagas Creek Project has not received adequate
funding from U.S. Department of Agriculture to complete the Public Law
566 project. To remedy this situation, the District worked with
congressional representatives to transfer the construction authority
from the Department of Agriculture to the Corps under the Water
Resources Development Act of 1999 (Section 501). Since the transfer of
responsibility to the Corps, the District has been working the Corps to
complete the project.
Fiscal Year 2004 Funding.--$250,000 was appropriated in fiscal year
2004 for the Llagas Creek Flood Protection Project for planning and
design.
Fiscal Year 2005 Funding Recommendation.--Based upon the high risk
of flood damage from Llagas Creek, it is requested that the
congressional committee support an appropriation add-on of $1.35
million in fiscal year 2005 for planning, design, and environmental
updates for the Llagas Creek Project.
COYOTE CREEK WATERSHED STUDY
Background.--Coyote Creek drains Santa Clara County's largest
watershed, an area of more than 320 square miles encompassing most of
the eastern foothills, the City of Milpitas, and portions of the Cities
of San Jose and Morgan Hill. It flows northward from Anderson Reservoir
through more than 40 miles of rural and heavily urbanized areas and
empties into south San Francisco Bay.
Prior to construction of Coyote and Anderson Reservoirs, flooding
occurred in 1903, 1906, 1909, 1911, 1917, 1922, 1923, 1926, 1927, 1930
and 1931. Since 1950, the operation of the reservoirs has reduced the
magnitude of flooding, although flooding is still a threat and did
cause damages in 1982, 1983, 1986, 1995, and 1997. Significant areas of
older homes in downtown San Jose and some major transportation
corridors remain susceptible to extensive flooding. The Federally-
supported lower Coyote Creek Project (San Francisco Bay to Montague
Expressway), which was completed in 1996, protected homes and
businesses from storms which generated record runoff in the northern
parts of San Jose and Milpitas.
The proposed Reconnaissance Study would evaluate the reaches
upstream of the completed Federal flood protection works on lower
Coyote Creek.
Objective of Study.--The objectives of the Reconnaissance Study are
to investigate flood damages within the Coyote Creek Watershed; to
identify potential alternatives for alleviating those damages which
also minimize impacts on fishery and wildlife resources, provide
opportunities for ecosystem restoration, provide for recreational
opportunities; and to determine whether there is a Federal interest to
proceed into the Feasibility Study Phase.
Study Authorization.--In May 2002, the House of Representatives
Committee on Transportation and Infrastructure passed a resolution
directing the Corps to ``. . . review the report of the Chief of
Engineers on Coyote and Berryessa Creeks . . . and other pertinent
reports, to determine whether modifications of the recommendations
contained therein are advisable in the interest of flood damage
reduction, environmental restoration and protection, water conservation
and supply, recreation, and other allied purposes . . .''.
Fiscal Year 2004 Funding.--No Federal funding was received in
fiscal year 2004.
Fiscal Year 2005 Funding Recommendation.--It is requested that the
congressional committee support an appropriation add-on of $100,000 to
initiate a multi-purpose Reconnaissance Study within the Coyote Creek
Watershed.
UPPER PENITENCIA CREEK FLOOD PROTECTION PROJECT
Background.--The Upper Penitencia Creek Watershed is located in
northeast Santa Clara County, California, near the southern end of the
San Francisco Bay. In the last two decades, the creek has flooded in
1980, 1982, 1983, 1986, 1995, and 1998. The January 1995 flood damaged
a commercial nursery, a condominium complex, and a business park. The
February 1998 flood also damaged many homes, businesses, and surface
streets.
The proposed project on Upper Penitencia Creek, from the Coyote
Creek confluence to Dorel Drive, will protect portions of the cities of
San Jose and Milpitas. The floodplain is completely urbanized;
undeveloped land is limited to a few scattered agricultural parcels and
a corridor along Upper Penitencia Creek. Based on the U.S. Army Corps
of Engineers' (Corps) 1995 reconnaissance report, 4,300 buildings in
the cities of San Jose and Milpitas are located in the flood prone
area, 1,900 of which will have water entering the first floor. The
estimated damages from a 1 percent or 100-year flood exceed $121
million.
Study Synopsis.--Under authority of the Watershed Protection and
Flood Prevention Act (Public Law 83-566), the Natural Resources
Conservation Service (formerly the Soil Conservation Service) completed
an economic feasibility study (watershed plan) for constructing flood
damage reduction facilities on Upper Penitencia Creek. Following the
1990 U.S. Department of Agriculture Farm Bill, the Natural Resources
Conservation Service watershed plan stalled due to the very high ratio
of potential urban development flood damage compared to agricultural
damage in the project area.
In January 1993 the Santa Clara Valley Water District (District)
requested the Corps proceed with a reconnaissance study in the 1994
fiscal year while the Natural Resources Conservation Service plan was
on hold. Funds were appropriated by Congress for fiscal year 1995 and
the Corps started the reconnaissance study in October 1994. The
reconnaissance report was completed in July 1995, with the
recommendation to proceed with the feasibility study phase. The
feasibility study, initiated in February 1998, is currently scheduled
for completion in 2005.
Advance Construction.--To accelerate project implementation, the
District submitted a Section 104 application to the Corps for advance
approval to construct a portion of the project. Approval of the Section
104 application was awarded in December 2000. The advance construction
is for a 2,600-foot-long section of bypass channel between Coyote Creek
and King Road. However, due to funding constraints at the District and
concerns raised by regulatory agencies, the design was stopped and
turned over to the Corps to complete.
Fiscal Year 2004 Funding.--$460,000 was appropriated in fiscal year
2004 for the Upper Penitencia Creek Flood Protection Project for
project investigation.
Fiscal Year 2005 Funding Recommendation.--Based upon the high risk
of flood damage from Upper Penitencia Creek and the need to proceed
with the feasibility study, it is requested that the congressional
committee support an appropriation add-on of $535,000 million, in
addition to the $46,000 in the administration's fiscal year 2005
budget, for a total of $600,000 for the Upper Penitencia Creek Flood
Protection Project.
COYOTE/BERRYESSA CREEK PROJECT
BERRYESSA CREEK PROJECT ELEMENT
Background.--The Berryessa Creek Watershed is located in northeast
Santa Clara County, California, near the southern end of the San
Francisco Bay. A major tributary of Coyote Creek, Berryessa Creek
drains 22 square miles in the City of Milpitas and a portion of San
Jose.
On average, Berryessa Creek floods once every 4 years. The most
recent flood in 1998 resulted in significant damage to homes and
automobiles. The proposed project on Berryessa Creek, from Calaveras
Boulevard to upstream of Old Piedmont Road, will protect portions of
the Cities of San Jose and Milpitas. The flood plain is largely
urbanized with a mix of residential and commercial development. Based
on the U.S. Army Corps of Engineers (Corps) 1993 draft General Design
Memorandum, a 1 percent or 100-year flood could potentially result in
damages of $52 million with depths of up to 3 feet.
Study Synopsis.--In January 1981, the Santa Clara Valley Water
District (District) applied for Federal assistance for flood protection
projects under Section 205 of the 1948 Flood Control Act. The Water
Resources Development Act of 1990 authorized construction on the
Berryessa Creek Flood Protection Project as part of a combined Coyote/
Berryessa Creek Project to protect portions of the Cities of Milpitas
and San Jose.
The Coyote Creek element of the project was completed in 1996. The
Berryessa Creek Project element proposed in the Corps' 1987 feasibility
report consisted primarily of a trapezoidal concrete lining. This was
not acceptable to the local community. The Corps and the District are
currently preparing a General Reevaluation Report which involves
reformulating a project which is more acceptable to the local community
and more environmentally sensitive. Project features will include
setback levees and floodwalls to preserve sensitive areas (minimizing
the use of concrete), appropriate aquatic and riparian habitat
restoration and fish passage, and sediment control structures to limit
turbidity and protect water quality. The project will also accommodate
the City of Milpitas' adopted trail master plan. Estimated total costs
of the General Reevaluation Report work are $3.8 million, and should be
completed in the summer of 2005.
Fiscal Year 2004 Funding.--$250,000 was appropriated in fiscal year
2004 for the Coyote/Berryessa Creek Flood Protection Project to
continue the General Reevaluation Report and environmental documents
update.
Fiscal Year 2005 Funding Recommendation.--Based on the continuing
threat of significant flood damage from Berryessa Creek and the need to
continue with the General Reevaluation Report, it is requested that the
congressional committee support an appropriation add-on of $750,000 for
the Berryessa Creek Flood Protection Project element of the Coyote/
Berryessa Creek Project.
SAN FRANCISQUITO CREEK WATERSHED PROJECT
Background.--The San Francisquito Creek watershed comprises 45
square miles and 70 miles of creek system. The creek mainstem flows
through five cities and two counties, from Searsville Lake, belonging
to Stanford University, to the San Francisco Bay at the boundary of
East Palo Alto and Palo Alto. Here it forms the boundary between Santa
Clara and San Mateo counties, California and separates the cities of
Palo Alto from East Palo Alto and Menlo Park. The upper watershed
tributaries are within the boundaries of Portola Valley and Woodside
townships. The creek flows through residential and commercial
properties, a biological preserve, and Stanford University campus. It
interfaces with regional and State transportation systems by flowing
under two freeways and the regional commuter rail system. The local
communities have formed a Joint Powers Authority in 1999 to
cooperatively manage flood and restoration efforts. San Francisquito
Creek is one of the last natural continuous riparian corridors on the
San Francisco Peninsula and home to one of the last remaining viable
steelhead trout runs. It is a highly valued resource by all
communities. The riparian habitat and urban setting offer unique
opportunities for a multi-objective project addressing flood
protection, habitat, water quality, and recreation.
Flooding History.--The creeks mainstem has a flooding frequency of
approximately once in 11 years. It is estimated that over $155 million
in damages could occur in Santa Clara and San Mateo counties from a 1
percent flood, affecting 4,850 home and businesses. Significant areas
of Palo Alto flooded in December 1955, inundating about 1,200 acres of
commercial and residential property and about 70 acres of agricultural
land. April 1958 storms caused a levee failure downstream of Highway
101, flooding Palo Alto Airport, the city landfill, and the golf course
up to 4 feet deep. Overflow in 1982 caused extensive damage to private
and public property. The flood of record occurred on February 3, 1998,
when overflow from numerous locations caused severe, record
consequences with more than $28 million in damages. More than 1,100
homes were flooded in Palo Alto, 500 people were evacuated in East Palo
Alto, and the major commute and transportation artery, Highway 101, was
closed.
Status.--Active citizenry are anxious to avoid a repeat of February
1998 flood. Numerous watershed based studies have been conducted by the
Corps, the Santa Clara Valley Water District, Stanford University, and
the San Mateo County Flood Control District. Grassroots, consensus-
based organization, called the San Francisquito Watershed Council, has
united stakeholders including local and State agencies, citizens, flood
victims, developers, and environmental activists for over 10 years. The
San Francisquito Creek Joint Powers Authority was formed in 1999 to
coordinate creek activities with five member agencies and two associate
members. The Authority Board has agreed to be the local sponsor for a
Corps project and received congressional authorization for a Corps
reconnaissance study in May 2002.
Fiscal Year 2004 Funding.--$100,000 was appropriated to San
Francisquito Creek in fiscal year 2004 to conduct a Watershed
Reconnaissance Study.
Fiscal Year 2005 Funding Recommendation.--It is requested the
congressional committee support an appropriation add-on of $200,000 in
fiscal year 2005 budget to initiate a Feasibility Study for the San
Francisquito Creek Watershed.
GUADALUPE RIVER PROJECT
Background.--The Guadalupe River is a major waterway flowing
through a highly developed area of San Jose, in Santa Clara County,
California. A major flood would damage homes and businesses in the
heart of Silicon Valley. Historically, the river has flooded downtown
San Jose and the community of Alviso. According to the U.S. Army Corps
of Engineers (Corps) 2000 Final General Reevaluation & Environmental
Report for Proposed Project Modifications, estimated damages from a 1
percent flood in the urban center of San Jose are over $576 million.
The Guadalupe River overflowed in February 1986, January 1995, and
March 1995, damaging homes and businesses in the St. John and Pleasant
Street areas of downtown San Jose. In March 1995, heavy rains resulted
in breakouts along the river that flooded approximately 300 homes and
business.
Project Synopsis.--In 1971, the local community requested that the
Corps reactivate its earlier study. Since 1972, substantial technical
and financial assistance have been provided by the local community
through the Santa Clara Valley Water District in an effort to
accelerate the project's completion. To date, more than $85.8 million
in local funds have been spent on planning, design, land purchases, and
construction in the Corps' project reach.
The Guadalupe River Project received authorization for construction
under the Water Resources Development Act of 1986; the General Design
Memorandum was completed in 1992, the local cooperative agreement was
executed in March 1992, the General Design Memorandum was revised in
1993, construction of the first phase of the project was completed in
August 1994, construction of the second phase was completed in August
1996. Project construction was temporarily halted due to environmental
concerns.
To achieve a successful, long-term resolution to the issues of
flood protection, environmental mitigation, avoidance of environmental
effects, and project monitoring and maintenance costs, a multi-agency
``Guadalupe Flood Control Project Collaborative'' was created in 1997.
A key outcome of the collaborative process was the signing of the
Dispute Resolution Memorandum in 1998, which modified the project to
resolve major mitigation issues and allowed the project to proceed.
Energy and Water Development Appropriations Act of 2002 was signed into
law on November 12, 2001. This authorized the Modified Guadalupe River
Project at a total cost of $226,800,000. Construction of the last phase
of flood protection is scheduled for completion by December 2004 and is
dependent on timely Federal funding and continuing successful
mitigation issue resolution. The overall construction of the project
including the river park and the recreation elements is scheduled for
completion in 2006.
Fiscal Year 2004 Funding.--$14 million was authorized in fiscal
year 2004 to continue Guadalupe River Project construction.
Fiscal Year 2005 Funding Recommendation.--It is requested that the
congressional committee support an appropriation add-on of $6 million,
in addition to the $6 million in the administration's fiscal year 2005
budget, for a total of $12 million to continue construction of the
final phase of the Guadalupe River Flood Protection Project.
______
Prepared Statement of the Riverside County Flood Control and Water
Conservation District
------------------------------------------------------------------------
Project Request
------------------------------------------------------------------------
Murrieta Creek Flood Control Project: Construction $5,000,000
General................................................
San Jacinto & Santa Margarita River Watersheds Special 1,000,000
Area Management Plan (SAMP): General Investigations....
Santa Ana River--Mainstem: Construction General......... 58,060,000
------------------------------------------------------------------------
MURRIETA CREEK FLOOD CONTROL PROJECT
Murrieta Creek poses a severe flood threat to the cities of
Murrieta and Temecula. Over $12 million in damages was experienced in
the two cities as a result of Murrieta Creek flooding in 1993. The 1997
Energy and Water Appropriations Act dedicated $100,000 to conducting a
Reconnaissance Study of watershed management in the Santa Margarita
Watershed ``including flood control, environmental restoration,
stormwater retention, water conservation and supply, and related
purposes''. The study effort was initiated in April 1997 and completed
the following December. The Reconnaissance Study identified a Federal
interest in flood control on the Murrieta sub-basin, and recommended
moving forward with a detailed feasibility study for a flood control
project on Murrieta Creek.
Efforts on the Feasibility Study began in April 1998 and were
completed in September 2000. The Feasibility Study Report recommends
the implementation of Alternative 6, the Locally Preferred Plan (LPP)
for flood control, environmental restoration and recreation. The LPP is
endorsed by the Cities of Temecula and Murrieta and by the community as
a whole.
H.R. 5483, the Energy and Water Appropriations Act of 2000 included
specific language authorizing the Corps to construct ``the locally
preferred plan for flood control, environmental restoration and
recreation described as Alternative 6, based on the Murrieta Creek
Feasibility Report and Environmental Impact Statement dated September
2000.''
After finalizing the necessary cost sharing agreement in February
2001, the Corps initiated the detailed engineering design necessary to
develop construction plans and specifications for a Murrieta Creek
Project utilizing a fiscal year 2001 appropriation of $750,000. The
project received an additional appropriation of $1,000,000 for
engineering design efforts in fiscal year 2002. Those funds were
utilized to develop design-level topographic mapping for the entire 7-
mile long project, to complete all necessary geotechnical work, and to
begin the preparation of construction drawings for the initial phases
of construction.
The Murrieta Creek Flood Control Project is being designed and will
be constructed in four distinct phases. Phases 1 and 2 include channel
improvements through the city of Temecula. Phase 3 involves the
construction of a 240-acre detention basin, including the 160-acre
restoration site and over 50 acres of recreational facilities. Phase 4
of the project will include channel improvements through the city of
Murrieta. Equestrian, bicycle and hiking trails as well as a continuous
habitat corridor for wildlife are components of this and every phase of
the project.
The Omnibus Appropriations Bill for fiscal year 2003 provided $1
million for a new construction start for this critical public safety
project. Construction activities on Phase 1 of the project commenced in
the Fall of 2003 and the Groundbreaking Ceremony was held on November
12, 2003. The appropriations for fiscal year 2004 allowed the Corps to
continue construction on Phase 1 and initiate its engineering design
work for Phase 2 of the project. Phase 2 traverses the area of Temecula
hardest hit with damages from the severe flooding of 1993. The Corps
anticipates having a Phase 2 construction contract ready to award in
the summer of 2005. The District, therefore, respectfully requests the
committee's support of a $5 million appropriation in fiscal year 2005
so that the Corps may complete construction on Phase 1, complete the
design work for Phase 2 and initiate construction on Phase 2 of the
long awaited Murrieta Creek Flood Control, Environmental Restoration
and Recreation Project.
SAN JACINTO & SANTA MARGARITA RIVER WATERSHEDS SPECIAL AREA MANAGEMENT
PLAN
The County of Riverside recognizes the interdependence between the
region's future transportation, habitat, open space and land-use/
housing needs. In 1999, work was initiated on Riverside County's
Integrated Project (RCIP) to determine how best to balance these
factors. The plan will create regional conservation and development
reserves that will protect entire communities of native plants and
animals while streamlining the process for compatible economic
development in other areas. The major elements of the plan include
water resource identification, multi-species planning, land use and
transportation.
In order to achieve a balance between aquatic resource protection
and economic development, the Corps is developing a Special Area
Management Plan (SAMP) for both the San Jacinto and Santa Margarita
Watersheds. This comprehensive planning effort will be used to assist
Federal, State and local agencies with their decision making and
permitting authority to protect, restore and enhance aquatic resources
while accommodating various types of development activities. The Santa
Margarita and San Jacinto watersheds include such resources as
woodlands, wetlands, freshwater marshes, vernal pools, streams, lakes
and rivers.
The final product of the SAMP will be the establishment of an
abbreviated or expedited regulatory permitting process by the Corps
under Section 404 of the Clean Water Act. The Corps' effort includes
facilitating meetings between all potential watershed partners, and the
integration of the joint study effort with the planning and multiple
species habitat conservation efforts of the balance of the RCIP
project.
The $500,000 Federal appropriation received for fiscal year 2001
allowed the Corps to initiate work on this 3-year, $5.5 million SAMP
effort. The $2 million appropriation received in fiscal year 2002
allowed the Corps to make significant progress on a ``landscape level
aquatic resource delineation'', and to initiate a functional assessment
to determine the value of waters and wetlands. The $1 million
appropriation received for fiscal year 2003 allowed the Corps to
complete their wetlands delineation effort. The $200,000 appropriations
received for fiscal year 2004 allowed for some of the management of the
preparation of the NEPA document to continue.
Further funding is now needed to continue the SAMP effort. We,
therefore, respectfully request that the committee support a combined
$1,000,000 appropriation of Federal funding for fiscal year 2005 for
the Corps to continue its work on the Special Area Management Plan for
the San Jacinto and Santa Margarita River Watersheds.
SANTA ANA RIVER--MAINSTEM
The Water Resources Development Act of 1986 (Public Law 99-662)
authorized the Santa Ana River--All River project that includes
improvements and various mitigation features as set forth in the Chief
of Engineers' Report to the Secretary of the Army. The Boards of
Supervisors of Orange, Riverside and San Bernardino Counties continue
to support this critical project as stated in past resolutions to
Congress.
The three local sponsors and the Corps signed the Local Cooperation
Agreement (LCA) in December 1989. The first of five construction
contracts started on the Seven Oaks Dam feature in the spring of 1990
and the dam was officially completed on November 15, 1999. A dedication
ceremony was held on January 7, 2000. Significant construction has been
completed on the lower Santa Ana River Channel and on the San Timoteo
Creek Channel. Construction activities on Oak Street Drain and the Mill
Creek Levee have been completed. Seven Oaks Dam was turned over to the
Local Sponsors for operation and maintenance on October 1, 2002.
For fiscal year 2005, an appropriation of $4.46 million is
necessary to initiate construction activities on several features
within ``Reach 9'' of the Santa Ana River immediately downstream of
Prado Dam. This segment of the Santa Ana River project is the last to
receive flood protection improvements. The streambed existing today in
a relatively natural state would receive only localized levee and slope
revetment treatment to protect existing development along its southerly
bank.
The removal of accumulated sediment within an already completed
section of the Santa Ana River Channel near its outlet to the Pacific
Ocean will necessitate a fiscal year 2005 appropriation of $4.3
million. This dredging work is necessary before project turnover to the
Local Sponsors for operation and maintenance.
Construction activities on the last remaining phase of San Timoteo
Creek Channel, a Mainstem feature located within San Bernardino County,
would be completed given a final $5 million appropriation.
An appropriation of $7.0 million is being requested to fund the
required mitigation for the operation and maintenance of the Seven Oaks
Dam project.
The Prado Dam feature of the Santa Ana River Mainstem project is in
need of several major upgrades in order that it mitigate the potential
impacts of a 100-year storm. All of the engineering work necessary to
redesign the dam is now complete. In fiscal year 2003, the Corps was
able to award a construction contract to begin modifications to the dam
embankment and outlet works. An fiscal year 2005 appropriation of $37.3
million would allow the Corps to continue with the construction of
improvements to Prado Dam's outlet works and embankment, and would fund
all necessary environmental mitigation measures.
We, therefore, respectfully request that the committee support an
overall $58,060,000 appropriation of Federal funding for fiscal year
2005 for the Santa Ana River Mainstem project including Prado Dam.
______
Prepared Statement of the Standing Rock Sioux Tribe
Project.--Standing Rock MRI and Irrigation Systems, Garrison
Diversion Unit (Public Law 99-294).
Agency.--Corps of Engineers, Missouri Basin Pick Sloan, OMR.
FISCAL YEAR 2005 BUDGET REQUEST
The Standing Rock Sioux Tribe requests $6,500,000 in the Corps of
Engineers' budget for fiscal year 2005 for the Missouri Basin Pick
Sloan Project from the operation, maintenance and replacement (OMR)
account to reconstruct three intakes made inoperable by siltation
caused by the operation of water levels in Lake Oahe in the months
August through December 2003 as set out below:
------------------------------------------------------------------------
------------------------------------------------------------------------
Cannonball Irrigation Intake............................ $2,000,000
Fort Yates Irrigation Intake............................ 1,500,000
Fort Yates Municipal and Industrial Intake.............. 3,000,000
---------------
Total............................................. 6,500,000
------------------------------------------------------------------------
BACKGROUND
The construction and operation of Garrison and Oahe dams, principle
components of the Missouri River Pick Sloan Program, by the Corps of
Engineers has caused considerable damage to the Standing Rock Sioux
Tribe of the Standing Rock Indian Reservation, North and South Dakota.
The following activities have caused the siltation of three major
intakes owned and operated by the Tribe for irrigation and domestic
water use and threatens proposed downstream intakes:
--The construction of Garrison Dam, upstream from Lake Oahe, has
caused the erosion of the bed and banks of the free flowing
Missouri River between Garrison Dam and Bismarck;
--The construction of Oahe Dam and the filling of Lake Oahe has
caused the deposition of sediment eroded from the bed and banks
of the Missouri River between Garrison Dam and Bismarck at the
upper end of Lake Oahe. This deposition has been estimated by
the U.S. Bureau of Reclamation at 14,600 acre feet annually
(equivalent to 560,000 acre of deposition over the past 40
years);
--Lowering the Lake Oahe water levels to historic minimums in fall
2003 caused the transport of sediments deposited in the upper
end of Lake Oahe to more downstream locations in Lake Oahe
within the Standing Rock Indian Reservation and inundated the
Cannonball irrigation intake and the Fort Yates municipal,
rural and industrial water intake, the principle source of
domestic water supply for the Standing Rock Sioux Tribe, The
Fort Yates irrigation intake was likewise stranded in fall
2003;
--The Cannonball irrigation intake was inundated with 11 feet of
sediment between August and December 2003, and the Fort Yates
municipal, rural and industrial water intake was rendered
unusable by the deposition of sediment creating a water supply
emergency for 10,000 members of the Standing Rock Sioux Tribe.
The Corps of Engineers was fully knowledgeable with respect to the
erosion of the bed and bank of the Missouri River between Garrison Dam
and Bismarck and the subsequent deposition of sediments on the Standing
Rock Indian Reservation in the upper end of Lake Oahe as evidenced by
the following documents, among others:
--Alfred S. Harrison and Warren J. Mellema, May 1984, Aggradation and
Degradation Aspects of the Missouri River Mainstem Dams, MRD
Sediment Series, Number 34, U.S. Army Corps of Engineers, Omaha
District.
--Corps of Engineers, December 1983, Deposition at the Heads of
Reservoirs, MRD Sediment Series, Number 31, Omaha District.
--Sedimentation and Channel Stabilization Section, November 1999,
Sedimentation Impacts in the Cheyenne River Arm--Lake Oahe,
Phase II, Projected to 2058, MRR Sediment Memorandum, 20, U.S.
Army Corps of Engineers, Omaha District.
--U.S. Geological Survey, 1995, Transport and Sources of Sediment in
the Missouri River between Garrison Dam and the Headwaters of
Lake Oahe, North Dakota, May 1988 through April 1991 Water-
Resources Investigations Report 95-4087.
The Standing Rock Sioux Tribe, pursuant to the Treaties of 1851 and
1868 possesses prior and superior rights to the use of water in the
Missouri River, its tributaries and its aquifers for present and future
purposes and has exercised those water rights for the present
development of irrigation and domestic water supply by the construction
of intakes on the Missouri River where the natural channel of the river
crosses the Standing Rock Indian Reservation, which intakes are
submerged at the upper end of Lake Oahe.
DEPLETION OF TRIBES' FUNDS APPROPRIATED PURSUANT TO PUBLIC LAW 99-294,
AS AMENDED
The Standing Rock MRI project funds (Public Law 99-294) have been
depleted to make interim, emergency corrections to restore the drinking
water supply for the Tribal membership and other residents served in
Fort Yates, Cannonball, Porcupine and intermediate rural areas.
Questions also arise with respect to the viability of the new
irrigation intake in the Kenel area where the next phase of the Public
Law 99-294 irrigation project is to be implemented. It is not known how
long an intake as far south as Kenel will be viable because the rate of
progress of sediment movement from the upper to middle segments of Lake
Oahe is not known. Kenel has been under consideration as a possible
site for long-term MRI intake, but this option must be reevaluated
after better information is in hand to determine if the migration of
sediment will reach Kenel in the near term.
The cost of a long-term solution is not yet known. Far more
information is needed on the phenomenon of sediment movement in Lake
Oahe before a permanent location and elevation for a new intake can be
established. Sound cost estimates can be prepared thereafter.
The Cannonball Irrigation Unit was to begin operation in spring
2004. It appears the Tribe will not be able to meet those expectations
because 11 feet of silt now resides atop that intake. Funds for
corrective measures at this site in fiscal year 2004 will further
deplete the irrigation authority of Public Law 99-294 intended for
development of additional parts of the 2,380 authorized acres.
STANDING ROCK SEDIMENT ANALYSIS IN LAKE OAHE
When Garrison Dam closed in 1955, a streamflow of 10,000 cubic feet
per second (cfs) produced a water level elevation in the Missouri River
downstream from the dam of approximately 1,676 feet above mean sea
level. In 1990 a streamflow of 10,000 cfs produced a water level
elevation in the Missouri River of approximately 1,668 feet, a decline
in water level elevation of 8 feet. The reason for the decline in water
level elevation for the same flow rate of 10,000 cfs was the excavation
of the bed of the River below the dam. (See Figure 1 from the Corps of
Engineers). With entrapment of all incoming sediment in the reservoir
upstream from the dam, releases from the dam are free of sediment and
have the capability to capture material from the bed and banks of the
downstream river channel. Over a long period of time (1955 to 2003)
this predictable activity has lowered the bed of the Missouri River and
eroded the banks.
When Oahe Dam closed and began filling in 1962, material excavated
from the Missouri River below Garrison Dam was deposited by the slowing
velocity of the River as it entered the upper end of the Oahe pool.
Over a 30-year period an unknown volume and tonnage of sediment was
excavated upstream and deposited downstream from Bismarck. (See Figure
2 from USGS with independent modifications to show zones of excavation
and deposition upstream and downstream from Bismarck, respectively.)
The following statement confirms that Bismarck is near the transition
between upstream excavation or ``degradation'' and downstream
deposition or ``aggradation'' of the channel.
``. . . there have been no marked changes in stage at this station
[Bismarck] except for discharges of 30,000 cfs or greater, which have
exhibited a slight upward trend . . . a study completed by the Corps
[of Engineers] in 1985 `Oahe-Bismarck Area Studies' indicated that
aggradation has reduced the size of the channel in the study area,
resulting in higher stages for the same discharge. The study concluded
that for discharges of 50,000 to over 100,000 cfs, the stages have
increased by 1 to 2 feet in the study area. It was also estimated that
future aggradation will further increase stages for those discharges by
an additional 0.8 to 1.4 feet.'' (U.S. Geological Survey, 1995,
Transport and Sources of Sediment in the Missouri River Between
Garrison Dam and the Headwaters of Lake Oahe, North Dakota, May 1988
through April 1991, Water-Resources Investigations Report 95-4087).
During the drought of the last few years, including 2003, water
levels in Lake Oahe fell from average elevations of 1,605 feet to
historic minimums. Only in year 1990 had water levels reached as low
(1,582 feet) as in 2003. In 2002, water levels in the October through
December time frame reached averages of 1,584 feet. In November 2003,
water levels reached as low as 1,576 feet, the lowest on record.
Sufficient information is not in hand (but should be available) to
determine the elevation of the bed of the Missouri River before
sediment began to accumulate in the upper end of Lake Oahe. When the
intake for the Cannonball Irrigation Project was constructed in the
late 1990's, the intake was placed underwater in the former channel of
the Missouri River (the lowest point at that River-mile). The top of
the intake screen was at 1,573 feet. Similarly, the intake for the
Standing Rock MRI Project was reportedly constructed in the former
channel of the River at a known elevation not available at the time of
this writing.
Sediment moved downstream in fall 2003 as the reservoir levels in
Lake Oahe were lowered and the Missouri River was required to flow
across areas normally inundated and filled with sediment over the past
40 years. In this zone at the upper end of the lowered Lake Oahe, the
Missouri River eroded artificially deposited sediments and moved them
further downstream in the Reservoir. This caused the failure of the
intake for the Tribe's MRI Project and deposited as much as 11 feet of
sediment in the former Missouri River channel at the Cannonball intake
site. Sediment has reached elevation 1,584 feet or 11 feet above the
bottom of 1,573 feet measured at the irrigation intake in August 2003.
Elements of the phenomenon reported here have been studied by
agencies of the United States, including the U.S. Geological Survey and
the Corps of Engineers. It is believed that the Corps of Engineers knew
or should have known that the lowering of water levels in Lake Oahe
would cause the redistribution of sediments from the upper end of the
Reservoir, where they knew sediments were deposited, to further
downstream locations. At a minimum, the Tribe should have been notified
in advance of the risk to its intakes as the Corps began its operations
in the critical October to December period. Reasonable management of
reservoir levels may have avoided the exigent conditions that existed
for the Tribe in December and the considerable expense to redesign,
reconstruct and relocate both MRI and irrigation intakes due to the
releases from Garrison and management of water levels in Lake Oahe.
When the emergency occurred, the Corps of Engineers increased releases
from Garrison Dam from approximately 13,000 cfs (River stage at 4.2
feet) to 18,000 cfs (River stage at 6.2 feet), the most marked change
in releases during the October to December 2003 time frame. (See Figure
3 from USGS).
Long-term solutions for the Tribe require collection of information
not in the Tribe's hands and revision of the procedures for Garrison
releases and management of Lake Oahe during drought conditions.
Specifically, a sediment survey in the upper reaches of Lake Oahe is
needed to document the current position of sediment deposits. Analysis
is needed to determine where those deposits will move in the future and
how the Tribe can locate and build dependable intakes. This problem
affects at least two existing irrigation intakes (Cannonball and Fort
Yates) and the MRI intake. The future irrigation intake at Kenel is
also subject to an unknown level of risk. New operating procedures are
needed that raised the minimum operating water levels. A diking system
may be needed to contain upstream sediment.
The Corps of Engineers is the responsible Federal agency that
constructed and operated the Federal facilities causing the degradation
of the bed of the Missouri River, the aggradation of the upper end of
Lake Oahe, and the redistribution of sediments in the upper end of Lake
Oahe to the destruction of the Tribe's intakes in fall 2003.
Legislation is be needed to authorize the appropriation of funds to
reconstruct new intakes of the Tribe in a manner to insure their
dependability. Appropriate investigations will be needed of the
baseline sediment conditions and the probable future redistribution in
advance of permanent reconstruction. Mitigation measures and changes in
the Master Manual are needed, including diking and new minimum
operating water levels.
______
Prepared Statement of the City of Morro Bay
During World War II the Army Corps of Engineers (ACOE) designed and
constructed a new harbor entrance at Morro Bay with two rock
breakwaters. Since the initial construction, over 60 years ago, the
Federal Government has maintained the harbor entrance, breakwaters and
navigational channels. In fiscal year 1995 the ACOE completed the Morro
Bay Harbor entrance improvement project to improve safety for
commercial fishing and coastal navigation.
The City of Morro Bay contributed almost $1,000,000 in local cost
share to the ACOE Entrance Improvement Project. Since 1995 the Federal
Government has funded maintenance dredging of Morro Bay Harbor every
year. The most cost-effective manner to conduct this dredging has been
using the ACOE dredge Yaquina every year in the Entrance Area due to
rapid shoaling in that area, and scheduling a larger project to
maintain the Morro and Navy Navigation channels every 3 to 4 years as
those channels accumulate sediment at a slower rate.
Below is a summary of dredging history for the federally designated
navigation channels in Morro Bay.
------------------------------------------------------------------------
Date Area Dredged Cubic Yardage
------------------------------------------------------------------------
1997 Outer Entrance 63,009.00
1998 Entrance, Main, Navy, Morro & Sand Trap 579,692.00
1998 Entrance, Main 115,388.00
1999 Entrance & Transitional Channel 134,234.00
2000 Entrance & Transitional Channel 236,883.00
2001 Entrance & Transitional Channel 180,467.00
2002 Entrance, Navy, Morro & Sand Trap 868,483.10
2003 Entrance & Transitional Channel 170,817.00
------------------------------------------------------------------------
Morro Bay Harbor is the only all-weather harbor of refuge between
Santa Barbara and Monterey on the West Coast. Our Harbor directly
supports almost 250 home-ported fishing vessels and marine dependent
businesses. We provide critical maritime facilities for both
recreational and commercial interests. Businesses that depend on the
harbor generate $50,000,000 annually and employ over 700 people. The
United States Coast Guard (USCG) maintains a 32 person National
Security Base and Search and Rescue Station at Morro Bay Harbor to
provide the Coast Guard services for the entire Central California
Coast, including port safety coverage for the Diablo Canyon Nuclear
Power Plant and Vandenberg Air Force Base.
In 2000 the California legislature designated Morro Bay and several
other small ports along the California coast as ``Harbors of Safe
Refuge''. This legislation recognizes the critical role many small
harbors play in affording a safety zone for commercial and recreational
vessels transiting the California coast.
Exposure to the open ocean and strong winter currents carrying
sediment into the harbor create the need for a routine maintenance
schedule to insure that the harbor entrance and federally designated
navigation channels remain safe and navigable. The Morro Bay National
Estuary Program recognizes the need to maintain the navigational
channels in the harbor both for the viability of the commercial fishing
industry and to maintain adequate tidal exchange for the health of the
Morro Bay Estuary. It is imperative that the federally constructed
navigation channels, entrance area and protective jetties be maintained
to insure safe commerce and navigation on a 300-mile stretch of the
California Coast and to maintain a safe port for the Coast Guard to
operate from. Without continued Federal maintenance, all of the past
local and Federal investment will be lost.
Last year the budget included $1.4 million for dredging of the
navigational channels including the Entrance Channel, the Navy Channel
and the Morro Channel. This year the proposed budget eliminates all
funding for the Morro Bay navigation channel maintenance dredging.
The Army Corps of Engineers has the capability to execute $4.11
million in maintenance dredging operations for fiscal year 2005. The
entrance area has shoaled significantly since the last dredge cycle and
will require dredging next year to sustain safe navigation in our area.
We respectfully request that your distinguished subcommittee include
$4.11 million in dredging funds for Morro Bay Harbor to keep our harbor
open and safe in all conditions and to provide a safe base of
operations for the United States Coast Guard.
In addition to being homeport to over 250 commercial fishing
vessels, Morro Bay Harbor is part of the federally designated National
Estuary Program. The Morro Bay Estuary was the subject of an ACOE
reconnaissance study (funded by Congress in 1998) of potential projects
to restore sensitive habitat through improving tidal circulation and
decreasing sedimentation. The County of San Luis Obispo and the Bay
Foundation are acting as local sponsors for the Feasibility Phase. We
support the funding of $250,000 to continue work on the feasibility
study for the Morro Bay Habitat Restoration project in fiscal year
2005.
Thank you for your actions and support, and for the opportunity to
present these requests to your subcommittee on behalf of the citizens
of the City of Morro Bay.
______
Prepared Statement of the Port of Sacramento, California
The Port of Sacramento requests a fiscal year 2005 appropriation of
$8.5 million for the continued deepening of the Sacramento River Deep
Water Ship Channel.
After a hiatus in construction, the Port has been actively working
with the San Francisco District Corps of Engineers to reinvigorate this
important project. The fiscal year 2005 appropriation will complete a
Limited Re-Evaluation Report and provide funding to continue the
deepening of the Ship Channel from 30 to 35. This 5 additional feet
will greatly expand the accessability of the Port of Sacramento to the
world fleet which will allow better service to existing customers and
will improve the of diversify cargoes and customers, both which
increase the revenues at the Port.
This project is vital to the economic future of the Port of
Sacramento, which has provided international waterborne cargo services
in the Greater Sacramento region for 40 years. In the future,
California will also ``re-discover'' that its ports, and particularly
its inland Ports, are an environmentally friendly alternative to the
burgeoning highway traffic. ``Short sea shipping'' is concept in
waterborne transportation that is increasing in application in Europe
as a means to reduce highway congestion.
We would greatly appreciate your support of our appropriation
request.
______
Prepared Statement of the Washington Suburban Sanitary Commission
ARMY CORPS OF ENGINEERS
------------------------------------------------------------------------
Project Request
------------------------------------------------------------------------
Middle Potomac River Study.............................. $200,000
Patuxent River Watershed Study.......................... 200,000
------------------------------------------------------------------------
WASHINGTON SUBURBAN SANITARY COMMISSION
The Washington Suburban Sanitary Commission (Commission or WSSC),
established in 1918, is a public, bi-county agency providing water and
wastewater services to Montgomery and Prince George's Counties in the
Washington Capital region. WSSC is governed by six Commissioners with
equal representation from each county and has developed its systems to
the point where it is a national leader in the water and sewerage
industry. The Commission is the among the ten largest water and
wastewater utilities in the country, serving approximately 1.6 million
people in a 1,000 square mile service area. In addition, the Commission
provides services to 26 key Federal installations and facilities in the
Washington area, including such important military facilities as
Andrews Air Force Base; the National Imagery and Mapping Agency; the
National Naval Medical Center; the Naval Surface Warfare Center; the
U.S. Army Research Center. Numerous other State and local security-
related installations and offices also receive service from the
Commission.
Water treatment and distribution facilities operated by the
Commission include three water supply reservoirs; two water filtration
plants; 14 water pumping stations; 5,100 miles of water mains; and 54
treated-water storage facilities. Water production at Commission
facilities is 166 million gallons per day. In terms of wastewater
facilities, the Commission operates six wastewater treatment plants; 41
wastewater pumping stations; and approximately 4,900 miles of sewer
mains.
MIDDLE POTOMAC RIVER STUDY
The Commission is committed to ensuring that the residents of the
Montgomery and Prince George's Counties continue to have a clean, safe
supply of drinking water. Consistent with that commitment is the need
to improve that quality of the environment in the regions river basins
and increase the ability to store water to meet increasing demand,
particularly in times of drought.
The Corps of Engineers' Baltimore District (District) has recently
completed a reconnaissance study of the water resources needs of the
Middle Potomac River Watershed. The District found that there is a
Federal interest in pursuing further study opportunities within the
Middle Potomac study area and recommended that the study continue into
the feasibility phase to begin the planning process for the restoration
of the Middle Potomac Watershed. One of the objectives identified for
the feasibility phase was further study of the status of the region's
water resources as they relate to water supply needs. One of the
specific recommendations for further study is an effort to identify
stresses on the Middle Potomac Watershed ecosystem at varying levels of
water flows and the development of sustainable watershed management
plans and planning tools. The Corps specifically mentioned WSSC as a
potential non-Federal sponsor for this study. The Commission believes
that such an effort, including an analysis of opportunities for
additional water supply storage in the basin, is critical to the long-
term health of the region. The Corps has estimated that the total cost
of this feasibility study is $3 million and the Commission supports an
initial request of $200,000 in fiscal year 2005 to begin conducting
this study.
PATUXENT RIVER WATERSHED STUDY
The Commission owns and operates the Triadelphia and Rocky Gorge
Reservoirs on the Patuxent River. Together these reservoirs hold 14
billion gallons of drinking water serving 700,000 people in Montgomery,
Howard, and Prince Georges Counties in Maryland. Maintaining and
improving the quality of the water in these reservoirs is a major
objective of the Commission. The current buffer zones around these two
reservoirs are relatively narrow. Expanding and restoring the habitat
of these buffer zones would help ensure the long-term quality of the
water in the reservoirs and also provide environmental benefits to the
entire Patuxent River Basin. Improving the quality of the water in the
Patuxent River would also prove beneficial to efforts to restore the
health of the Chesapeake Bay.
In July of 1995, the Corps of Engineers completed the ``Patuxent
River Water Resources Reconnaissance Study'', which was authorized by
House Committee on Public Works and Transportation Resolution dated
September 28, 1994. The purpose of the study was to develop a watershed
plan for managing the water and related land resources of the Patuxent
River watershed. The watershed plan that was developed addresses multi-
purpose environmental solutions for the improvement of riparian,
wetland, and aquatic habitat, improvements to water quality, recreation
development and flood damage reduction measures. Among the actions
recommended for implementation were riparian buffer projects and
streambank protection and restoration projects. Such activities would
reduce sedimentation and the runoff of pollutants.
The Commission believes that more detailed study of the areas
around the Triadelphia and Rocky Gorge Reservoirs would be consistent
with the watershed plan developed as part of the Patuxent River Water
Resources Reconnaissance Study and could lead to environmental
restoration activities that would prove beneficial to the entire
region, including Chesapeake Bay. Therefore, the Commission supports a
request of $200,000 to conduct a feasibility study.
______
Prepared Statement of the Metropolitan Water Reclamation District of
Greater Chicago
On behalf of the Metropolitan Water Reclamation District of Greater
Chicago (District), I want to thank the subcommittee for this
opportunity to present our priorities for fiscal year 2005 and, at the
same time, express our appreciation for your support of the District's
projects in the years past. The District is the local sponsor for three
Corps of Engineers priority projects of the Chicagoland Underflow Plan:
the O'Hare, McCook and Thornton Reservoirs. We are requesting the
subcommittee's full support for McCook and Thornton Reservoirs, as the
O'Hare Reservoir has been completed. Specifically, we request the
subcommittee to include a total of $43,300,000 in construction funding
for the McCook and Thornton Reservoir projects in the bill. The
following text outlines these projects and the need for the requested
funding.
THE CHICAGOLAND UNDERFLOW PLAN
The Chicagoland Underflow Plan (CUP) consists of three reservoirs:
the O'Hare, McCook and Thornton Reservoirs. These reservoirs are a part
of the Tunnel and Reservoir Plan (TARP). The O'Hare Reservoir Project
was fully authorized for construction in the Water Resources
Development Act of 1986 (Public Law 99-662) and completed by the Corps
in fiscal year 1999. This reservoir is connected to the existing O'Hare
segment of the TARP. Adopted in 1972, TARP was the result of a multi-
agency effort, which included officials of the State of Illinois,
County of Cook, City of Chicago, and the District.
TARP was designed to address the overwhelming water pollution and
flooding problems of the Chicagoland combined sewer areas. These
problems stem from the fact that the capacity of the area's waterways
has been overburdened over the years and has become woefully inadequate
in both hydraulic and assimilative capacities. These waterways are no
longer able to carry away the combined sewer overflow (CSO) discharges
nor are they able to assimilate the pollution associated with these
discharges. Severe basement flooding and polluted waterways are the
inevitable result. More critically, larger storms generate back flows
to Lake Michigan and pollute water supply for the six-county area. We
point with pride to the fact that TARP was found to be the most cost-
effective and socially and environmentally acceptable way for reducing
these flooding and water pollution problems. Experience to date has
reinforced such findings with respect to economics and efficiency.
The TARP plan calls for the construction of the new ``underground
rivers'' beneath the area's waterways. The ``underground rivers'' are
tunnels up to 35 feet in diameter and 350 feet below the surface. To
provide an outlet for these tunnels, reservoirs will be constructed at
the end of the tunnel systems. Approximately 101.5 miles of tunnels,
constructed at a total cost of $2.2 billion, are operational. The final
7.9 miles of tunnels, costing $168 million, are under construction. The
tunnels capture the majority of the pollution load by capturing all of
the small storms and the first flush of the large storms. The completed
O'Hare CUP Reservoir provides 350 million gallons of storage. This
Reservoir has a service area of 11.2 square miles and provides flood
relief to 21,535 homes in Arlington Heights, Des Plaines and Mount
Prospect. In its first 6 years of operation, O'Hare CUP Reservoir has
taken water in 18 storm events, and yielded $62.8 million in flood
damage reduction benefits, which exceeds its $44.5 million construction
costs. The Thornton and McCook Reservoirs are currently under
construction, but until they are completed significant areas will
remain unprotected. Without these outlets, the local drainage has
nowhere to go when large storms hit the area.
Since its inception, TARP has not only abated flooding and
pollution in the Chicagoland area, but has helped to preserve the
integrity of Lake Michigan. In the years prior to TARP, a major storm
in the area would cause local sewers and interceptors to surcharge
resulting in CSO spills into the Chicagoland waterways and during major
storms into Lake Michigan, the source of drinking water for the region.
Since these waterways have a limited capacity, major storms have caused
them to reach dangerously high levels resulting in massive sewer
backups into basements and causing multi-million dollar damage to
property.
Since implementation of TARP, 741 billion gallons of CSOs have been
captured by TARP, that otherwise would have reached waterways. Area
waterways are once again abundant with many species of aquatic life and
the riverfront has been reclaimed as a natural resource for recreation
and development. Closure of Lake Michigan beaches due to pollution has
become a rarity. The elimination of CSOs will reduce the quantity of
discretionary dilution water needed to keep the area waterways fresh.
This water can be used instead for increasing the drinking water
allocation for communities in Cook, Lake, Will and DuPage counties that
are now on a waiting list to receive such water. Specifically, since
1977, these counties received an additional 162 million gallons of Lake
Michigan water per day, partially as a result of the reduction in the
District's discretionary diversion since 1980. Additional allotments of
Lake Michigan water will be made to these communities, as more water
becomes available from reduced discretionary diversion.
With new allocations of lake water, more than 20 communities that
previously did not get lake water are in the process of building, or
have already built, water mains to accommodate their new source of
drinking water. The new source of drinking water will be a substitute
for the poorer quality well water previously used by these communities.
Partly due to TARP, it is estimated by IDOT that between 1981 and 2020,
283 million gallons per day of Lake Michigan water would be added to
domestic consumption. This translates into approximately 2 million
additional people that would be able to enjoy Lake Michigan water. This
new source of water supply will not only benefit its immediate
receivers but will also result in an economic stimulus to the entire
Chicagoland area by providing a reliable source of good quality water
supply.
THE MCCOOK AND THORNTON RESERVOIRS
The McCook and Thornton Reservoirs of the Chicagoland Underflow
Plan (CUP) were fully authorized for construction in the Water
Resources Development Act of 1988 (Public Law 100-676). These CUP
reservoirs, as previously discussed, are a part of TARP, a flood
protection plan that is designed to reduce basement flooding due to
combined sewer back-ups and inadequate hydraulic capacity of the urban
waterways.
These reservoirs will provide a storage capacity of 18 billion
gallons and will provide annual benefits of $115 million. The total
potential annual benefits of these projects are approximately twice as
much as their total annual cost. The District, as the local sponsor,
has acquired the land necessary for these projects, and will meet its
cost sharing obligations under Public Law 99-662.
These projects are a very sound investment with a high rate of
return. They will enhance the quality of life, safety and the peace of
mind of the residents of this region. The State of Illinois has
endorsed these projects and has urged their implementation. In
professional circles, these projects are hailed for their
farsightedness, innovation, and benefits.
Based on two successive Presidentially-declared flood disasters in
our area in 1986 and again in 1987, and dramatic flooding in the last
several years, we believe the probability of this type of flood
emergency occurring before implementation of the critical flood
prevention measure is quite high. As the public agency for the greater
Chicagoland area responsible for water pollution control, and as our
past sponsorship for flood control projects, we have an obligation to
protect the health and safety of our citizens. We are asking your
support in helping us achieve this necessary and important goal of
construction completion.
We appreciate that the subcommittee has included critical levels of
funds for these important projects. We were delighted to see the
$19,500,000 in construction funds for the McCook and Thornton
Reservoirs included in the Fiscal Year 2004 Energy and Water
Development Appropriations Act. In addition, an additional $1,000,000
was included in the Fiscal Year 2004 Consolidated Appropriations bill.
However, it is important that we receive a total of $43,300,000 in
construction funds in fiscal year 2005 to maintain the schedule of
these critical projects. This funding is critical to continue the
construction of the McCook Reservoir on schedule, in particular, to
complete construction of the grout curtain, distribution tunnels, and
pumps and motors and to accelerate the design of the Thornton
Reservoir. The community has waited long enough for protection and we
need these funds now to move the project in construction. We
respectfully request your consideration of our request.
SUMMARY
Our most significant recent flooding occurred on February 20, 1997,
when almost 4 inches of rain fell on the greater Chicagoland area. Due
to the frozen ground, almost all of the rainfall entered our combined
sewers, causing sewerage back-ups throughout the area. When the
existing TARP tunnels filled with approximately 1.2 billion gallons of
sewage and runoff, the only remaining outlets for the sewers were our
waterways. Between 9:00 p.m. and 3:00 a.m., the Chicago and Calumet
Rivers rose 6 feet. For the first time since 1981 we had to open the
locks at all three of the waterway control points; these include
Wilmette, downtown Chicago, and Calumet. Approximately 4.2 billion
gallons of combined sewage and stormwater had to be released directly
into Lake Michigan.
Given our large regional jurisdiction and the severity of flooding
in our area, the Corps was compelled to develop a plan that would
complete TARP and be large enough to accommodate the area we serve.
With a combined sewer area of 375 square miles, consisting of the city
of Chicago and 51 contiguous suburbs, there are 1,443,000 structures
within our jurisdiction, which are subject to flooding. The annual
damages sustained exceed $150 million. If TARP, including the CUP
Reservoirs were in place, these damages could be eliminated. We must
consider the safety and peace of mind of the 2 million people who are
affected as well as the disaster relief funds that will be saved when
these projects are in place. As the public agency in the greater
Chicagoland area responsible for water pollution control, and as the
regional sponsor for flood control, we have an obligation to protect
the health and safety of our citizens. We are asking your support in
helping us achieve this necessary and important goal. It is absolutely
critical that the Corps' work, which has been proceeding for a number
of years, now proceeds on schedule through construction.
Therefore, we urgently request that a total of $43,300,000 in
construction funds be made available in the Fiscal Year 2005 Energy and
Water Development Appropriations Act to continue construction of the
McCook and Thornton Reservoir Projects.
Again, we thank the subcommittee for its support of this important
project over the years, and we thank you in advance for your
consideration of our request this year.
______
Prepared Statement of the Napa County Flood Control and Water
Conservation District
SUMMARY RECOMMENDATIONS
------------------------------------------------------------------------
Funding
Project request
------------------------------------------------------------------------
Napa River Flood Control: Construction.................. $20,000,000
Napa Valley Watershed Management: Feasibility Study..... 200,000
------------------------------------------------------------------------
NAPA RIVER FLOOD CONTROL PROJECT
Background
The project is located in the city and county of Napa, California.
The population in the city of Napa, approximately, 67,000 in 1994, is
expected to exceed 77,000 this year. Excluding public facilities, the
present value of damageable property within the project flood plain is
well over $500 million. The Napa River Basin, comprising 426 square
miles, ranging from tidal marshes to mountainous terrain, is subject to
severe winter storms and frequent flooding. In the lower reaches of the
river, flood conditions are aggravated by high tides and local runoff.
Floods in the Napa area have occurred in 1955, 1958, 1963, 1965, 1986
(flood of record), 1995, and 1997. In 1998, the river rose just above
flood stage on three occasions, but subsided before major property
damage occurred. In December of 2002, flooding occurred from the Napa
Creek at the transition to the Napa River, resulting in damage to
numerous residents and several businesses.
Since 1962, 27 major floods have struck the Valley region, exacting
a heavy toll in loss of life and property. The flood on 1986, for
example, killed three people and caused more than $100 million in
damage. Damages throughout Napa County totaled about $85 million from
the January and March 1995 floods. The floods resulted in 27 businesses
and 843 residences damaged countrywide. Almost all of the damages from
the 1986, 1995, and 1997 floods were within the project area. Congress
has authorized a flood control project since 1944, but due to expense,
lack of public consensus on the design and concern about environment
impacts, a project had never been realized. In mid-1995, Federal and
State resource agencies reviewed the plan and gave notice to the Corps
that this plan had significant regulatory hurdles to face.
Approved Plan--Project Overview
In an effort to identify a meaningful and successful plan, a new
approach emerged that looked at flood control from a broader, more
comprehensive perspective. Citizens for Napa River Flood Management was
formed, bringing together a diverse group of local engineers,
architects, aquatic ecologists, business and agricultural leasers,
environmentalists, government officials, homeowners and renters and
numerous community organizations.
Through a series of public meetings and intensive debate over every
aspect of Napa's flooding problems, the Citizens for Napa River Flood
Management crafted a flood management plan offering a range of benefits
for the entire Napa region. The Corps of Engineers served as a partner
and a resource for the group, helping to evaluate their approach to
flood management. The final plan produced by the Citizens for Napa
River Flood Management was successfully evaluated through the research,
experience and state-of-the-art simulation tools developed by the Corps
and numerous international experts in the field of hydrology and other
related disciplines. The success of this collaboration serves as a
model for the Nation.
Acknowledging the river's natural state, the project utilizes a set
of living river strategies that minimize the disruption and alteration
of the river habitat, and maximizes the opportunities for environmental
restoration and enhancement throughout the watershed.
The Corps has developed the revised plan, which provides 100-year
protection, with the assistance of the community and its consultants
into the Supplemental General Design Memorandum (SGDM) and its
accompanying draft Environmental Impact Statement/Environmental Impact
Report (SEIS/EIR). Construction of the project began 3 years ago. The
coalition plan now memorialized in the Corps final documents includes
the following engineered components: lowering of old dikes, marsh plain
and flood plain terraces, oxbow dry bypass, Napa Creek flood plain
terrace, upstream and downstream dry culverts along Napa Creek, new
dikes, levees and flood walls, bank stabilization, pump stations and
detention facilities, and bridge replacements. The benefits of the plan
include reducing or elimination of loss of life, property damage,
cleanup costs, community disruption due to unemployment and lost
business revenue, and the need for flood insurance. In fact, the
project has created an economic renaissance in Napa with new
investment, schools and housing coming into a livable community on a
living river. As a key feature, the plan will improve water quality,
create urban wetlands and enhance wildlife habitats.
The plan will protect over 7,000 people and over 3,000 residential/
commercial units from the 100-year flood event on the Napa River and
its main tributary, the Napa Creek, and the project has a positive
benefit-to-cost ratio under the Corps calculation. One billion dollars
in damages will be saved over the useful life of the project. The Napa
County Flood Control District is meeting its local cost-sharing
responsibilities for the project. A countywide sales tax, along with a
number of other funding options, was approved 4 years ago by a two-
thirds majority of the county's voters for the local share. Napa is
California's highest repetitive loss community. This plan is
demonstrative of the disaster resistant community initiative, as well,
as the sustainable development initiatives of FEMA and EPA.
Project Synopsis
Fiscal Year 2004 Funding
The Fiscal Year 2004 Energy and Water Development Appropriations
Act included $10,000,000 to continue construction of the project. In
addition, the Fiscal Year 2004 Consolidated Appropriations bill
included $2,750,000 for the project. The funding was sought for
demolition of buildings and fixtures on 24 parcels that have been
acquired by the non-Federal sponsor, relocation of the Napa Valley Wine
Train rail line for an approximate 3-mile distance, as well as
relocation of the facilities serving this public utility, removal of
190,000 cubic yards of soil which was contaminated by petroleum
products, construction of marsh and flood plain terraces for an
approximate 1.5-mile distance. Included in this amount is the
reimbursement to the non-Federal sponsor for expenditures in excess of
45 percent of the total project costs to date. The local sponsor has
expended $110 million, as compared to Federal sponsor expenditures to
date of approximately $35 million.
Necessary Fiscal Year 2005 Funding
Funding for the Napa River Project during 2005 in the amount of
$20,000,000 is needed to continue construction of the project. These
funds will be used to accomplish the following tasks:
--Complete HTRW remediation along the east side of the river for
additional 2 miles involving removal of an additional 200,000
cubic yards of contaminated soil;
--Initiate and complete the Contract 1B excavation work in Kennedy
Park;
--Initiate Contract 2East excavation work on the east side of river
from Imola to the Bypass;
--Construct two railroad bridges, one over the bypass and one over
the Napa River and relocate approximately 3,100 feet of
railroad track replacement;
--Continue engineering and design on future contracts;
--Accomplish Construction Management on contract underway;
--Initiate reimbursement of local sponsor with funds not required for
the above.
Included in this amount is the reimbursement to the non-Federal
sponsor for expenditures in excess of 74 percent of the total project
costs to date. By the end of June, 2003 the non-Federal sponsor will
have expended $110 million. By the end of June, 2004 the non-Federal
sponsor will have spent $130,000,000.
NAPA VALLEY WATERSHED MANAGEMENT
Background
The Napa Valley watershed faces many challenges and stresses to its
environmental health and flood management abilities. From a healthy
river point of view, the Napa River has been on a recovery path since
its low point in the 1960's, when the last of the native salmon were
taken from the system by severe water pollution and habitat
destruction. Steelhead trout have survived as a remnant population of
200 that is presently in need of higher quality and more extensive
spawning areas for recovery to a significant population. Beginning
populations of fall run Chinook salmon have taken up residence in the
watershed in those few areas available for spawning. While the chemical
and wastewater pollution of earlier years has been effectively dealt
with, excess sediment is still a critical stress on the salmon
population, as it is to the spawning and rearing areas of the river in
the estuarine zone upstream of San Pablo Bay, populated by delta smelt,
splittail, green sturgeon and striped bass.
The U.S. EPA and Region II Water Quality Control Board have
prioritized the River as an impaired water body because of the sediment
production. The excess sediment generated in the watershed suffocates
spawning areas, reduces the stream's flood-carrying ability, fills deep
pools, increases turbidity in the stream and estuary, carries with it
nutrients that bring significant algae blooms during the summer and
fall, and changes the morphological balance of the streams and river
toward more unstable conditions.
In order to address issues such as encroachment of the river and
loss of wetlands and to develop local tools for improving natural
resource management, the U.S. Army Corps of Engineers, San Francisco
District (Corps) and the Napa County Flood Control and Water
Conservation District (NCFCWCD) is currently developing a Napa Valley
Watershed Management Plan (WMP) which identifies problems and
opportunities for implementing environmentally and economically
beneficial restoration in the Napa Valley watershed providing ecosystem
benefits, such as flood reduction, erosion control, sedimentation
management, and pollution abatement. The plan, which the District is
requesting funds for, would include the identification, review,
refinement, and prioritization of restoration and flood protection
opportunities with an emphasis on restoration of the watershed's
ecosystem (e.g.: important plant communities, healthy fish and wildlife
populations, rare and endangered habitats and species and wildlife and
riparian habitats).
The goal is to complete the WMP by providing technical, planning,
and design assistance to the non-Federal interests for carrying out
watershed management, restoration and development on the Napa River and
its tributaries from Soscol Ridge, located approximately 5 miles south
of the city of Napa, to Mt. St. Helena, the northern-most reach of the
Napa River watershed, California. A management program incorporating
flood protection and environmental restoration would be developed as a
result of the watershed plan.
To address the above mentioned and other local, regional, and
national watershed concerns, the Napa County Board of Supervisors
appointed a Napa County Watershed Task Force (WTF) to identify
community based and supported solutions. The WTF submitted their
recommendation for further action to the Napa County Board of
Supervisors.
The Corps and the NCFCWCD developed the Napa Valley Watershed
Project Management Plan with input from the Napa County Planning
Department (NCPD), Napa County Up-Valley Cities, Napa County Watershed
Task Force (WTF), Napa County Resource Conservation District (RCD),
Regional Water Quality Control Board (RWQCB), the San Francisco Estuary
Institute (SFEI), and other regional and local stakeholders.
In an effort to identify problems and opportunities for
implementing beneficial restoration in the Napa Valley Watershed, the
Napa County Flood Control District is requesting the Napa Valley
Watershed Management Study be continued by the Corps of Engineers. The
authority for this study is the Northern California Streams Study
Authority stemming from the Rivers and Harbors Act of 1962, Public Law
87-874. Specifically, the Napa County Flood Control District is working
closely with the Corps in the feasibility report to examine the
watershed management needs, including flood control, environmental
restoration, erosion control, storm water retention, storm water runoff
management, water conservation and supply, wetlands restoration,
sediment management and pollution abatement in the Napa Valley,
including the communities of Napa, Yountville, St. Helena, Calistoga
and the unincorporated areas of Napa County.
Project Synopsis
Fiscal Year 2004 Budget Funding
The fiscal year 2004 Energy and Water Development Appropriations
Act included $200,000 to continue the Napa Valley Watershed Management
Study. Funds are being used for data evaluation and outreach and to
create a data monitoring framework for the watershed. This framework,
known as the Watershed Information Center (WIC), will serve as a
coordinating body and data-monitoring framework for the watershed. The
WIC will serve as a library for existing biological and physical data
on the watershed. It can serve as a forum for the multiple agencies,
academic researcher and non-profit organizations engaged in monitoring
in the watershed.
Necessary Fiscal Year 2005 Funding
Funding for the Napa Valley Watershed Management Study during
fiscal year 2005 in the amount of $200,000 is needed to continue work
on the Napa Valley Watershed Resource Analysis & Report. The purpose of
this work is to provide a foundation assessment for resource allocation
that improves the habitat and water quality in the Napa River
watershed. This program was begun in fiscal year 2004. Prior year
activities have included aerial photography/mapping of the watershed.
This work has been successfully completed and is in use by Napa County,
its residents, resource groups and interested parties. It provides a
Geographical Information System (GIS) base for the management of
watershed information. Also previous watershed funding has developed an
internet based information system, the Watershed Information Center
(WIC). This web based communication allows the resources of watershed
studies to be available to all interested persons. The system has been
developed and is currently being put online for general use. These
first activities of the Napa Valley Watershed Management Study are
cornerstones of future watershed planning and enhancement.
______
Prepared Statement of the City of St. Helena, California
------------------------------------------------------------------------
Project Request
------------------------------------------------------------------------
St. Helena NAPA River Restoration Project: (Section 206 $800,000
Aquatic Ecosystem Restoration Program).................
York Creek Dam Removal and Restoration Project: (Section 800,000
206 Aquatic Ecosystem Restoration Program).............
------------------------------------------------------------------------
CITY OF ST. HELENA
The City of St. Helena is located in the center of the wine growing
Napa Valley, 65 miles north of San Francisco. The area was settled in
1834 as part of General Vallejo's land grant. The City of St. Helena
was incorporated as a City on March 24, 1876 and reincorporated on May
14, 1889.
The City from its inception has served as a rural agricultural
center. Over the years, with the growth and development of the wine
industry, the City has become an important business and banking center
for the wine industry. The City also receives many tourists as a result
of the wine industry. While, the main goal of the City is to maintain a
small-town atmosphere and to provide quality services to its citizens,
this is becoming increasingly difficult. Regulatory, administrative and
resource requirements placed on the City through the listing of
threatened and endangered species under the Endangered Species Act on
the Napa River, as well as significant Clean Water Act requirements
require the City with a small population base to face significant
financial costs.
The City of St. Helena is a General Law City and operates under the
Council-City Manager form of government. The City Council is the
governing body and has the power to make and enforce all laws and set
policy related to municipal affairs. The official population of the
City of St. Helena as of January 1, 2002 is 6,041. St. Helena is a full
service City and encompasses an area of 4 square miles. Because of its
size and its rural nature, St. Helena has serious infrastructure, as
well as, flood protection and environmental needs that far exceed its
financial capabilities.
The Napa River flows along the north boundary of the City of St.
Helena in northern Napa County. The overall Napa River Watershed
historically supported a dense riparian forest and significant wetland
habitat. Over the last 200 years, approximately 6,500 acres of valley
floor wetlands have been filled in and 45,700 acres of overall
watershed have been converted to urban and agricultural uses. This
degradation of natural habitats has had a significant effect on water
quality, vegetation and wildlife, and aquatic resources within the Napa
River Watershed.
Surface water quality of the Napa River is dependent upon the time
of year, runoff from York and Sulphur Creeks, and urban area
discharges. During the winter months when streamflow is high,
pollutants are diluted; however, sedimentation and turbidity is high as
well. During the summer months when streamflow is low, pollutants are
concentrated and oxygen levels are low, thereby decreasing water
quality. Agricultural runoff adds pesticides, fertilizer residue, and
sometimes sediment. Discharges from urban areas can include
contaminated stormwater runoff and treated city wastewater. The Napa
River has been placed on the Clean Water Act 303(d) List and TMDL
Priority Schedule due to unacceptable levels of bacteria,
sedimentation, and nutrients. It is against this backdrop that the City
of St. Helena faces its biggest challenges.
ST. HELENA NAPA RIVER RESTORATION PROJECT
The Napa River and its riparian corridor are considered Critical
Habitat for Steelhead and Salmon Recovery. The Steelhead is one of 6
federally listed threatened and endangered species within the Napa
River and its adjoining corridor which requires attention. Current
conditions are such that natural habitats and geomorphic processes of
the Napa River are highly confined with sediment transport and
geomorphic work occurring in a limited area of the streambed and
channel banks. Napa River's habitat for the steelhead is limited in its
ability to provide prime spawning habitat. Limitations include: (1)
urbanization removing significant amounts of shading and cover
vegetation within and adjacent to the river; and (2) a detrimental lack
of pool habitat. Encroachment and channelization of Napa River have
degraded riparian habitat for rearing, resident, and migratory fish and
wildlife. The lack of riparian cover, increasing water temperature and
sedimentation in the river, has resulted in poor water quality. These
changes have reduced the project area's ability to support the re-
establishment of listed species.
In an effort to address these Federal environmental issues, the St.
Helena Napa River Restoration Project, a Section 206 Aquatic Ecosystem
Restoration Project, was identified in the Napa Valley Watershed
Management Feasibility Study in April of 2001 as a specific opportunity
for restoration. The project would restore approximately 3 miles (20
acres) of riparian habitat and improve the migratory capacity of
federally listed threatened and endangered species, providing greater
access to rearing, resident and migratory habitats in the 80-square-
mile watershed above the project area.
The project will interface with and complement the City of St.
Helena's multiple objective flood project, the St. Helena Flood
Protection and Flood Corridor Restoration Project, which will provide
flood damage reduction through restoration and re-establishment of the
natural floodplain along the project reach, setting back levees and the
re-creation and restoration of a natural floodway providing high value
riparian forest.
This Section 206 project is necessary to ensure and improve the
viability of Federal and State listed species by providing rearing,
resident and migratory habitat in the project's 3-mile stream corridor.
The project will also work to improve area habitat to benefit the
migration of steelhead to high value fisheries habitat in upper
watershed channel reaches. In an effort to build on recent geomorphic
and riparian studies on the Napa River, the Corps will use these
efforts from Swanson Hydrology and Geomorphology and Stillwater Science
to secure baseline information for this project.
The City of St. Helena respectfully requests the committee's
support for $800,000 for completing the Detailed Project Report and
initiating plans and specifications for the St. Helena Napa River
Restoration Project under the Corps' Section 206 Aquatic Ecosystem
Restoration Program.
YORK CREEK DAM REMOVAL AND RESTORATION PROJECT
York Creek originates from the Coast Range on the western side of
the Napa Valley Watershed at an elevation of approximately 1,800 feet
and flows through a narrow canyon before joining the Napa River
northeast of St. Helena. York Creek Dam on York Creek has been
identified as a significant obstacle to passage for federally listed
Steelhead in the Central California Coast. In fact, it has been
determined that York Creek Dam is a complete barrier to upstream fish
migration. In addition, since the City of St. Helena has owned York
Creek Dam, there have been a number of silt discharges from the dam
into York Creek that have caused fish kills.
Under the Corps of Engineers' Section 206 Authority, a study is
underway to remove the dam structure and to restore the creek in an
effort to improve fish passage and ecological stream function for this
Napa River tributary. Alternatives to be investigated and pursued
include complete removal of York Creek Dam, appurtenances and
accumulated sediment, re-grading and restoring the creek through the
reservoir area. Rather than merely removing the dam and accumulated
sediments, alternatives under consideration would use a portion of the
material to re-grade the reservoir area to simulate the configuration
of the undisturbed creek channel upstream. Material could also be used
to fill in and bury the spillway and to fill in the scour hole
immediately downstream of the spillway. Use of material on site will
greatly reduce hauling and disposal costs, as well as recreating a more
natural creek channel through the project area.
The revegetation plan for the site following removal of the earthen
dam will restore a self-sustaining native plant community that is
sufficiently established to exclude nonnative invasive plants.
Revegetation will replace vegetation that is removed due to
construction and stabilize sediments in the stream channel riparian
corridor and upper bank slopes. The species composition of the
revegetated site will be designed to match that of (relatively)
undisturbed sites both above and below the project site. In terms of
expected outcomes for the project, the removal of York Creek Dam will
open an additional 2 miles of steelhead habitat upstream of the dam,
and the channel restoration will reestablish natural channel geomorphic
processes and restore riparian vegetation.
The City of St. Helena respectfully requests the committee's
support for $800,000 in appropriations under the Corps of Engineers'
Section 206 Aquatic Ecosystem Restoration Program, so that the efforts
to allow the continuation of the Detailed Project Report can stay on
schedule for the York Creek Dam Removal and Restoration Project.
______
Prepared Statement of the Calaveras County Water District
------------------------------------------------------------------------
Project Request
------------------------------------------------------------------------
CALAVERAS COUNTY WATERSHEDS STUDY....................... $1,500,000
------------------------------------------------------------------------
CALAVERAS COUNTY WATER DISTRICT
Calaveras County (County) is located in the central Sierra Nevada
foothills about 25 miles east of the Sacramento-San Joaquin Delta
(Delta). Ground elevations within the County increase from 200 feet
above mean sea level near the northwest part of the County to 8,170
feet near Alpine County. It is a predominately rural county with a
relatively sparse but rapidly developing population and limited
agricultural and industrial development. Calaveras County is located
within the watersheds of the Mokelumne, Calaveras, and Stanislaus
Rivers. All three rivers flow west, through San Joaquin County into the
Delta. Most of the County is underlain by the igneous and metamorphic
rocks of the Sierra Nevada. Alluvial deposits of the Central Valley,
which overlie the westward plunging Sierra Nevada, are present along an
80 square-mile area located along the western edge of the county and
are part of the Eastern San Joaquin County Groundwater Basin (ESJCGB).
This on-going Calaveras County Watersheds Study under the authority of
the Corps of Engineers' Sacramento and San Joaquin Comprehensive Basin
Study is focused on the western part of Calaveras County.
In the fall of 1946, the Calaveras County Water District (CCWD) was
organized under the laws of the State of California as a public agency
for the purpose of developing and administering the water resources in
Calaveras County. Therefore, CCWD is governed by the California
Constitution and the California Government and Water Codes. CCWD is not
a part of, or under the control of, the County of Calaveras. CCWD was
formed to preserve and develop water resources and to provide water and
wastewater service to the citizens of Calaveras County.
Under State law, CCWD, through its Board of Directors, has general
powers over the use of water within its boundaries. These powers
include, but are not limited to: the right of eminent domain, authority
to acquire, control, distribute, store, spread, sink, treat, purify,
reclaim, process and salvage any water for beneficial use, to provide
sewer service, to sell treated or untreated water, to acquire or
construct hydroelectric facilities and sell the power and energy
produced to public agencies or public utilities engaged in the
distribution of power, to contract with the United States, other
political subdivisions, public utilities, or other persons, and subject
to the California State Constitution, levy taxes and improvements.
CALAVERAS COUNTY WATERSHEDS STUDY--UNDER THE AUTHORITY OF THE
SACRAMENTO AND SAN JOAQUIN COMPREHENSIVE BASIN STUDY
Project Need
The Calaveras County Watersheds Study CCWD is being pursued through
the Corps of Engineers' program under the authority of the Sacramento
and San Joaquin Comprehensive Basin Study and includes a review of
project needs and opportunities within the Mokelumne River, Calaveras
River and Stanislaus River Watersheds.
CCWD is responsible for developing and administering the water
resources of Calaveras County. Historically, a significant portion of
the water needs of Calaveras County have been met mostly with surface
water from the Mokelumne, Calaveras or Stanislaus Rivers. One of the
overriding themes of the watershed study is to identify and maximize
the use of District surface water resources on the Mokelumne, Calaveras
and Stanislaus Rivers in conjunction with the groundwater supply to
improve supply reliability.
Historically, groundwater has been used only to meet demands of
scattered single family homes. This study area, which is part of the
Eastern San Joaquin County Groundwater Basin (ESJCGB), has been
identified by the State of California as being in a state of overdraft.
The California Department of Water Resources water level data for wells
near the Calaveras-San Joaquin County line, have recorded water level
declines ranging from 0.6 to 1.5 feet per year over the last 40 years.
Without programs to mitigate the groundwater overdraft, groundwater
levels will continue to decline in the groundwater basin.
In an effort to gain better understanding of the condition of the
water sources, and issues and opportunities including flooding and the
use of return flows, water supply and conjunctive use, as well as, the
surrounding environment, the comprehensive watershed approach is being
pursued.
While this is a watershed study, the approach is to focus in on the
CCWD's stated priority areas to develop project resolutions. The first
three critical project areas to be studied include the following:
Cosgrove Creek, Wallace Lake Estates and the Burson area.
Cosgrove Creek
Cosgrove Creek is an intermittent stream within the Calaveras River
watershed. The creek enters the lower Calaveras River downstream from
the spillway of New Hogan Lake. During average precipitation years,
stream flow is present from late fall through early to mid-summer.
Cosgrove is approximately 9.8 miles long and has a drainage area of
21 square miles. The upper two-thirds of the Cosgrove Creek watershed
is used for grazing and the lower third has been subject to urban
development. A portion of this lower reach, which passes through the
adjacent communities of Valley Springs, La Contenta and Rancho
Calaveras, has experienced many incidents of flooding and resulting
damage to residential properties.
The objective of this effort is to produce a feasibility study on
project alternatives for diverting Cosgrove Creek during peak flow
periods to provide for flood protection while putting the diverted
water to beneficial use. The solution will be a unique multiple purpose
project in that it would both divert flood flows and put the yield to
beneficial use for higher community needs such as creating wetlands and
environmental restoration, and developing complementary recreational
uses, such as ball fields and hiking or equestrian trails.
Wallace Lake Estates
Wallace Lake is located near the western edge of Calaveras County,
just north of Highway 26. The lake is part of the Wallace Lake Estates
subdivision.
Wallace Lake is also situated between East Bay Municipal Utility
District's (EBMUD's) Camanche Reservoir and Mokelumne aqueduct.
Qualitative observations have noted that, after filling, lake volume
appears to diminish far more rapidly than would be expected. The
Wallace Lake Community Services District would like to maintain the
lake at full capacity all year. It is reported that pumping well water
into the lake does not maintain desired levels. This has led to
speculation regarding the possibility that, if the lake is percolating
into the local groundwater table, this could be an attribute that could
intentionally be put to use to facilitate groundwater recharge and
development of a conjunctive use project.
The primary focus of this study is to assess both the local
hydrogeological conditions with respect to using the lake for
groundwater recharge and the means of transporting Mokelumne River
water to the lake.
The objective of this investigation is to produce an assessment and
feasibility study as a basis for developing project alternatives for
bringing Mokelumne water to Wallace Lake and the viability of utilizing
the lake for the purpose of demonstrating a groundwater infiltration
gallery, as well as environmental restoration.
Burson Area
Most of the area within Calaveras County north of Highway 12 and
south of the Mokelumne River, including the Burson area, is currently
wholly dependent upon groundwater and has experienced critical water
shortages for the last 20 years. Issues include low volume or no water
at all in some wells and degradation of water quality involving taste,
smell and chemical contamination. The problems have continued to
worsen.
One possible alternative project solution is conjunctive use of
Mokelumne River water to recharge the groundwater basin with high
quality surface water. (It appears unlikely that use of Wallace Lake
for recharge purposes will assist this particular area of need.)
A second alternative is to investigate the possible presence of and
potential use for high yielding zones, including an ancient underground
river within the defined aquifer area, that could be tapped without
detrimentally impacting existing users. These project alternatives
would include an environmental restoration component. The objective of
this investigation is to produce an assessment and feasibility study as
a basis for developing a drinking water system for the Burson area of
Calaveras County.
CCWD is working closely with the Sacramento Corps District in the
development of a Feasibility Cost Sharing Agreement in order for the
Calaveras County Watersheds Study to advance and for these projects to
proceed. In an effort for the feasibility study to move towards project
formulation, CCWD is seeking $1.5 million for the Calaveras County
Watersheds Study, as a separately identified effort under the authority
of the Sacramento and San Joaquin Comprehensive Basin Study, in the
Fiscal Year 2005 Energy and Water Development Appropriations Bill.
______
Prepared Statement of Cameron County, Texas
We express full support of the inclusion in the fiscal year 2005
budget for the full capability of the USACE for $831,000.
HISTORY AND BACKGROUND
On September 15, 2001, a tugboat and several barges struck the
Queen Isabella Causeway on the Gulf Intracoastal Waterway at the mouth
of the Brownsville Ship Channel east of Port Isabel. The accident took
the lives of eight people.
A January 1997 Reconnaissance Report of the Gulf Intracoastal
Waterway-Corpus Christi Bay to Port Isabel, Texas (Section 216), was
conducted by the United States Army Corps of Engineers. The study was
initiated to determine the Federal interest in rerouting the GIWW. The
information available at the time indicated a less than favorable
benefit to cost ratio for the proposed realignment. Since the September
15 incident, the Corps, Cameron County officials, and a number of local
entities and residents of the County have reopened discussion of the
rerouting of the GIWW. The Corps of Engineers agrees that new facts
regarding the safety of the current alignment warrants a revisiting of
the issue to determine the viability of rerouting the channel in a
direct line from the point where the waterway crosses underneath the
causeway to the point where it reaches the Brazos Santiago Pass and the
Brownsville Ship Channel. The route in question is the exact one
traveled by the tugboat and barges that struck the bridge on September
15, killing eight people. The tugboat captain failed to negotiate the
sharp turn after it passed through the Long Island Swing Bridge. This
particular turn is one of the most dangerous on the entire waterway.
PROJECT DESCRIPTION
The reconnaissance study would allow the Corps to reopen the
examination of the rerouting of the GIWW on the basis of safety. The
measure would seek to eliminate safety hazards to Port Isabel and Long
Island residents created by barges that move large quantities of fuel
and other potentially dangerous explosive chemicals through the
existing route under the Queen Isabella Causeway. The overall goal of
the study would be to enhance safety and transportation efficiency on
this busy Texas waterway by removing the treacherous turn tug and barge
operators are forced to make as they navigate the passage through the
Long Island Swing Bridge. In addition to the hazardous curve, the
winding and congested course taken by the waterway through the City of
Port Isabel adds needless distance and time to the transportation of
goods to and from Cameron County ports. These costs are borne not only
by commercial operators using the waterway, but also by consumers and
businesses all across Texas and the Nation. The rerouting would also
seek to correct the adverse impact of waterway traffic on Cameron
County residents. Apart from the obvious potential for damage to the
Queen Isabella Causeway, adverse impacts are created by waterway
traffic in the form of traffic delays associated with the Long Island
Swing Bridge and the transportation of hazardous materials within
several hundred feet of densely populated areas in Port Isabel and Long
Island. Currently, a 1950's era swing bridge that floats in the
waterway channel connects Long Island and the City of Port Isabel. As
waterborne traffic approaches the bridge, cables are used to swing it
from the center of the channel and then swing it back into place. This
costly and time-consuming process, which frequently backs up traffic
into the downtown business district of Port Isabel, is estimated to
drain hundreds of dollars a year from the economy of this economically
distressed area. More serious problems are created when the heavily
used cables or winch motors on the swing bridge fail, leaving the
bridge stuck in an open or closed position. Equipment failures often
cause delays for several days and leave Long Island residents cut-off
from vehicle access or the ports of Port Isabel and Brownsville cut-off
from in-bound and out-bound barge traffic. During these times, supplies
of vital commodities are halted all across the Rio Grande Valley as
stocks dwindle and produce and finished goods begin to pile up.
IMPACT OF THE GULF INTRACOASTAL WATERWAY
The Gulf Intracoastal Waterway is an integral part of the inland
transportation system of the United States. Stretching across more than
1,300 coastal miles of the Gulf of Mexico, this man-made, shallow-draft
canal moves a large variety and great number of vessels and cargoes.
The 426 miles of the waterway running through Texas makes it possible
to supply both domestic and foreign markets with chemicals, petroleum
and other essential goods. Barge traffic is essential to many of the
port economies from Texas to Great Lakes ports, indeed, throughout the
entire GIWW. Some ports feel their future strategic plans are closely
linked to the efficient operation of the GIWW. This is true for ports
that rely almost entirely on barge traffic as well as ports that
function primarily as recreational facilities. Most of the cargo moved
along Texas waterways is petroleum and petroleum products. The GIWW is
well suited for the movement of such cargo, and, therefore, has allowed
many of the smaller, shallow-draft facilities to engage in both
interstate and international trade. Commercial fishing access via the
GIWW has had a significant impact on these port economies as well.
CONCLUSION
A 1995 Lyndon Baines Johnson School of Public Affairs report
entitled ``The Texas Seaport and Inland Waterway System'' warned of
concern with the safe operation of barges on the GIWW citing, ``a
serious accident perhaps involving a collision between two barges
carrying hazardous materials could force closure of the waterway''. No
one could foresee the terrible accident that occurred on September 15.
The lives of eight people came to an end and the lives of their loved
ones was irrevocably changed forever. This important waterway must be
improved to prevent another tragedy. The $831,000 that must be added to
the fiscal year 2005 appropriations bill will allow the Corps of
Engineers to continue to study a preferred plan to remedy this
dangerous situation. The government has already invested $400,000 to
move this project forward. Cameron County, the users of the GIWW, and
the residents of the area respectfully requests the addition of this
much-needed appropriation.
______
Prepared Statement of the Brazos River Harbor Navigation District
We express full support of the inclusion in the fiscal year 2005
budget for the full capability of the USACE of $700,000.
President's budget included $300,000.
Additional funds needed for fiscal year 2005 $400,000.
HISTORY AND BACKGROUND
Port Freeport is an autonomous governmental entity authorized by an
act of the Texas Legislature in 1925. It is a deep-draft port, located
on Texas' central Gulf Coast, approximately 60 miles southwest of
Houston, and is an important Brazos River Navigation District
component. The port elevation is 3 to 12 feet above sea level. Port
Freeport is governed by a board of six commissioners elected by the
voters of the Navigation District of Brazoria County, which currently
encompasses 85 percent of the county. Port Freeport land and operations
currently include 186 acres of developed land and 7,723 acres of
undeveloped land, 5 operating berths, a 45-inch deep Freeport Harbor
Channel and a 70-foot deep sink hole. Future expansion includes
building a 1,300-acre multi-modal facility, cruise terminal and
container terminal. Port Freeport is conveniently accessible by rail,
waterway and highway routes. There is direct access to the Gulf
Intracoastal Waterway, Brazos River Diversion Channel, and, State
Highways 36 and 288. Located just 3 miles from deep water, Port
Freeport is one of the most accessible ports on the Gulf Coast.
PROJECT DESCRIPTION
The fiscal year 2002 Energy and Water appropriations signed into
law included a $100,000 appropriation to allow the United States Army
Corps of Engineers (USACE) to conduct a reconnaissance study to
determine the Federal interest in an improvement project for Freeport
Harbor, Texas. The USACE, in cooperation with the Brazos River Harbor
Navigation District as the local sponsor, has completed that study. The
report indicates that ``transportation savings in the form of National
Economic Development Benefits (NED) appear to substantially exceed the
cost of project implementation'', thus confirming ``a strong Federal
interest in conducting the feasibility study of navigation improvements
at Freeport Harbor''. In fact, the Corps anticipates a benefit to cost
ratio of the project to be at an impressive more than 20 to 1 benefit
to cost. The fiscal year 2003 budget fully funded the Corps capability
of $500,000 to begin the feasibility study. The fiscal year 2004 budget
included $250,000 with an additional $250,000 reprogrammed by the USACE
to continue the feasibility study without delay.
Port Freeport has the opportunity to solidify significant new
business for Texas with this improvement project. In addition, the
improvement to the environment by taking a huge number of trucks off of
the road, transporting goods more economically and environmentally
sensitive by waterborne commerce is infinitely important to the
community, the State, and the Nation. Moreover, the enhanced safety of
a wider channel cannot be overstated.
ECONOMIC IMPACT OF PORT FREEPORT
Port Freeport is sixteenth in foreign tonnage in the United States
and twenty-fourth in total tonnage. The port handled over 25 million
tons of cargo in 2003 and an additional 75,000 T.E.U.'s of
containerized cargo. It is responsible for augmenting the Nation's
economy by $7.06 billion annually and generating 30,000 jobs. Its chief
import commodities are bananas, fresh fruit and aggregate while top
export commodities are rice and chemicals. The port's growth has been
staggering in the past decade, becoming one of the fastest growing
ports on the Gulf Coast. Port Freeport's economic impact and its future
growth is justification for its budding partnership with the Federal
Government in this critical improvement project.
DEFENSE SUPPORT OF OUR NATION
Port Freeport is a strategic port in times of National Defense of
our Nation. It houses a critically important petroleum oil reserve--
Bryan Mound. It also is the only port in Texas that is being considered
by the United States Navy and General Dynamics as the site for the
building of Amphibious Assault Vehicles. Its close proximity to State
Highways 36 and 288 make it a convenient deployment port for Fort Hood.
In these unusual times, it is important to note the importance of our
ports in the defense of our Nation and to address the need to keep our
Federal waterways open to deep-draft navigation.
COMMUNITY AND INDUSTRY SUPPORT
This proposed improvement project has wide community and industry
support. The safer transit and volume increase capability is an
appealing and exciting prospect for the users of Freeport Harbor and
Stauffer Channel. The anticipated more than 20 to 1 benefit to cost
ratio that was indicated from the Corps of Engineers reconnaissance
study firmly solidified the Federal interest.
WHAT WE NEED FROM THE SUBCOMMITTEE IN FISCAL YEAR 2005
The administration's budget included $300,000 for the continuation
of the feasibility study, which will be conducted at a 50/50 Federal
Government/local sponsor share. The Corps had indicated a capability
for fiscal year 2005 of $700,000 to continue the feasibility study and
keep this project on an optimal and most cost-efficient time frame for
the Federal Government and the local sponsor. We respectfully request
the additional $400,000 for fiscal year 2005. Most Corps projects
indicate a 10 to 1 and below benefit to cost ratio. This project
estimates nearly twice that benefit to cost ratio and deserves to be
tagged a ``priority project''.
______
Prepared Statement of the Chambers County-Cedar Bayou Navigation
District
We express full support of the inclusion of the full capability of
the USACE for fiscal year 2005 to complete PED for the project to
deepen and widen Cedar Bayou, Texas.
President's Budget Included $135,000.
Additional Funds Needed in Fiscal Year 2005 $311,000.
HISTORY AND BACKGROUND
The Rivers and Harbor Act of 1890 originally authorized navigation
improvements to Cedar Bayou. The project was reauthorized in 1930 to
provide a 10 ft. deep and 100 ft. wide channel from the Houston Ship
Channel to a point on Cedar Bayou 11 miles above the mouth of the
bayou. In 1931, a portion of the channel was constructed from the
Houston Ship Channel to a point about 0.8 miles above the mouth of
Cedar Bayou, approximately 3.5 miles in length. A study of the project
in 1971 determined that an extension of the channel to project Mile 3
would have a favorable benefit-to-cost ratio. This portion of the
channel was realigned from mile 0.1 to mile 0.8 and extended from mile
0.8 to Mile 3 in 1975. In October 1985, the portion of the original
navigation project from project Mile 3 to 11 was deauthorized due to
the lack of a local sponsor. In 1989, the Corps of Engineers, Galveston
District completed a Reconnaissance Report dated June 1989, which
recommended a 12 ft. by 125 ft. channel from the Houston Ship Channel
Mile 3 to Cedar Bayou Mile 11 at the State Highway 146 Bridge. The
Texas Legislature created the Chambers County-Cedar Bayou Navigation
District in 1997 as an entity to improve the navigability of Cedar
Bayou.
The district was created to accomplish the purpose of Section 59,
Article XVI, of the Texas Constitution and has all the rights, powers,
privileges and authority applicable to Districts created under Chapters
60, 62, and 63 of the Water Code--Public Entity. The Chambers County-
Cedar Bayou Navigation District then became the local sponsor for the
Cedar Bayou Channel.
PROJECT DESCRIPTION AND REAUTHORIZATION
Cedar Bayou is a small coastal stream, which originates in Liberty
County, Texas, and meanders through the urban area near the eastern
portion of the City of Baytown, Texas, before entering Galveston Bay.
The bayou forms the boundary between Harris County on the west and
Chambers County on the east. The project was authorized in Section 349
of the Water Resources Development Act 2000, which authorized a
navigation improvement of 12 feet deep by 125 feet wide from mile 2.5
to mile 11 on Cedar Bayou.
JUSTIFICATION AND INDUSTRY SUPPORT
First and foremost, the channel must be improved for safety. The
channel is the home to a busy barge industry. The most cost-efficient
and safe method of conveyance is barge transportation. Water
transportation offers considerable cost savings compared to other
freight modes (rail is nearly twice as costly and truck nearly four
times higher). In addition, the movement of cargo by barge is
environmentally friendly. Barges have enormous carrying capacity while
consuming less energy, due to the fact that a large number of barges
can move together in a single tow, controlled by only one power unit.
The result takes a significant number of trucks off of Texas highways.
The reduction of air emissions by the movement of cargo on barges is a
significant factor as communities struggle with compliance with the
Clean Air Act.
Several navigation-dependent industries and commercial enterprises
have been established along the commercially navigable portions of
Cedar Bayou. Several industries have docks on at the mile markers that
would be affected by this much-needed improvement. These industries
include: Reliant Energy, Bayer Corporation, Koppel Steel, CEMEX, US
Filter Recovery Services and Dorsett Brothers Concrete, to name a few.
PROJECT COSTS AND BENEFITS
Congress appropriated $100,000 in fiscal year 2001 for the Corps of
Engineers to conduct the feasibility study to determine the Federal
interest in this improvement project. The study indicated a benefit to
cost ratio of the project of 2.8 to 1. The estimated total cost of the
project is $16.8 million with a Federal share estimated at $11.9
million and the non-Federal sponsor share of approximately $4.9
million. Total annual benefits are estimated to be $4.8 million, with a
net benefit of $3 million. Congress appropriated $400,000 each in
fiscal year 2002 and fiscal year 2003 and $374,000 in fiscal year 2004
to support the feasibility study. This project is environmentally sound
and economically justified. We would appreciate the subcommittee's
support of the required add of the $311,000 appropriation needed by the
Corps of Engineers to complete the plans and specifications of the
project so that it can move forward at an optimum construction
schedule. The users of the channel deserve to have the benefits of a
safer, most cost-effective Federal waterway.
______
Prepared Statement of The Nature Conservancy
Mr. Chairman and members of the subcommittee, I appreciate this
opportunity to present The Nature Conservancy's recommendations for the
Army Corps of Engineers and Bureau of Reclamation's fiscal 2005
appropriations. We understand and appreciate that the subcommittee's
ability to fund programs within its jurisdiction is limited by the
tight budget situation but appreciate your consideration of these
important programs.
The Nature Conservancy is an international, non-profit organization
dedicated to the conservation of biological diversity. Our mission is
to preserve the plants, animals and natural communities that represent
the diversity of life on Earth by protecting the lands and waters they
need to survive. The Conservancy has more than 1,000,000 individual
members and 1,900 corporate associates. We have programs in all 50
States and in 27 foreign countries. We have protected more than 15
million acres in the United States and approximately 102 million acres
with local partner organizations worldwide. The Conservancy owns and
manages 1,400 preserves throughout the United States--the largest
private system of nature sanctuaries in the world. Sound science and
strong partnerships with public and private landowners to achieve
tangible and lasting results characterize our conservation programs.
The Conservancy urges the subcommittee to support the following
appropriation levels in the fiscal 2005 Energy and Water Development
Appropriation bill:
CONSTRUCTION GENERAL PRIORITIES
Section 1135: Project Modification for the Improvement of the
Environment.--The Section 1135 Program authorizes the Army Corps of
Engineers (Corps) to restore areas damaged by existing Corps projects.
This program permits modification of existing dams and flood control
projects to increase habitat for fish and wildlife without interrupting
a project's original purpose. The Conservancy is the non-Federal cost
share partner on nine Section 1135 projects including Spunky Bottoms, a
floodplain restoration/reconnection project on the Illinois River, for
which we seek an earmark in the amount of $200,000 in fiscal 2005. This
program is in extremely high demand and severely oversubscribed in
fiscal 2004 with millions of dollars of requests beyond what was
appropriated. This financial shortfall has stopped many projects. The
Conservancy strongly encourages full funding of $25 million for the
Section 1135 program in fiscal 2005, an increase over the President's
$13.5 million request.
Section 206: Aquatic Ecosystem Restoration.--Section 206 is a newer
Corps program that authorizes the Corps to restore aquatic habitat
regardless of past activities. The Conservancy is the non-Federal cost-
share partner on four Section 206 projects. These projects restore
important fish and wildlife habitats, including a $5 million project at
Mad Island in Texas, and a $1.4 million riparian habitat restoration
project at Bootheel Creek in Florida. This program is in extremely high
demand and severely oversubscribed in fiscal 2004 with millions of
dollars of requests beyond what was appropriated. This financial
shortfall has stopped many projects. The Conservancy strongly
encourages full funding of $25 million for this valuable program in
fiscal 2005, an increase over the President's $10 million request.
Upper Mississippi River System Environmental Management Program.--
The Environmental Management Program (EMP) is an important Corps
program that constructs habitat restoration projects and conducts long-
term resource monitoring of the Upper Mississippi and Illinois Rivers.
The EMP operates as a unique Federal-State partnership affecting five
States (Illinois, Iowa, Minnesota, Missouri, and Wisconsin). The EMP
was reauthorized in WRDA 1999 with an increased authorization in the
amount of $33.2 million. The Conservancy supports full funding of $33.2
million for fiscal 2005, an increase over the President's $28 million
request.
Estuary Habitat Restoration Program.--The Estuary Habitat
Restoration Program was established with the intent to restore 1
million acres of estuary habitat by 2010. This multi-agency program
will promote projects that result in healthy ecosystems that support
wildlife, fish and shellfish, improve surface and groundwater quality,
quantity, and flood control; and provide outdoor recreation. The
Conservancy supports $10 million in fiscal 2005. This program was not
included in the President's budget.
Florida Keys Water Quality Program.--The Florida Keys Water Quality
Program is a unique restoration program designed to protect the Florida
Keys' fragile marine and coral ecosystem. This nationally significant
marine ecosystem is being impacted by excessive nutrients due to storm
and waste water pollution. This program is cost shared with State and
local interests to repair and improve the storm and wastewater
treatment facilities on the Florida Keys to reduce the harmful levels
of nutrient pollution. The Nature Conservancy, and its partners the
State of Florida, Florida Keys Aqueduct Authority, Monroe County, City
of Islamorada, City of Layton, City of Key Colony Beach, City of
Marathon, and City of Key West, support $30 million for fiscal 2005.
This program was not included in the President's budget.
Missouri River Fish and Wildlife Mitigation.--Created in WRDA 1986,
the Missouri River Fish and Wildlife Mitigation Project is designed to
reverse the negative environmental impacts of lower river
channelization and bank stabilization through land acquisition from
willing sellers. The Mitigation Project allows the Corps to restore
chutes, side channels, and other off-channel floodplain habitat for
river wildlife. The Conservancy supports the President's $69 million
request for fiscal 2005.
GENERAL INVESTIGATION PRIORITIES
Middle Potomac River Watershed Study.--The preliminary Middle
Potomac Watershed Section 905(b) analysis identified 14 feasibility
studies to address flood control needs and environmental restoration
opportunities within the Middle Potomac Watershed. The study team
identified three study goals for the development of project management
plans: (1) to conserve, restore, and revitalize the Potomac River
basin; (2) to develop sustainable watershed management plans; and (3)
to cooperate with and support public and private entities in developing
watershed management plans. The Conservancy supports $1 million in
fiscal 2005 to continue the development of these plans. This study was
not included in the President's budget.
Savannah Basin Comprehensive Water Resources Study.--The Savannah
Basin Comprehensive Water Resources Study will enable the Corps and
other partners to gain a better understanding of the influence of
hydrologic processes such as timing, duration, frequency, magnitude,
and rate of change of river flows on the river's ecology. The Nature
Conservancy, under a cooperative agreement funded by the Corps and its
cost share partners Georgia and South Carolina, developed a set of
ecosystem flow recommendations for the Savannah River Basin. A test
release of the new flow recommendation was conducted March 15-18, 2004.
The Conservancy supports $436,000 in fiscal 2005, an increase over the
President's $250,000 request.
REGULATORY PROGRAM PRIORITIES
Southern California Special Area Management Plan (SAMP).--For the
past 4 years, the Army Corps has been working with three Southern
California counties to develop region-wide Special Area Management
Plans that identify, delineate and plan for the conservation of
wetlands within their jurisdictions. These SAMPs are a critical part of
the regional effort to protect significant natural resources and to
plan for continued economic growth in Southern California. They are
emerging as an important planning tool that addresses streamlining of
Federal wetlands regulations while promoting more effective wetlands
conservation and providing long-term certainty for economic interests
in the region. The Southern California SAMP process is being evaluated
as a model for wetlands planning in other areas. The Conservancy
supports a $2 million earmark within the Corps' regulatory program for
fiscal 2005.
BUREAU OF RECLAMATION PRIORITIES
Recovery Implementation Program for Colorado Endangered Fish
Species.--The Recovery Program is in its fourteenth year of working for
the recovery of endangered fish species in the Upper Colorado River
Basin. The Recovery Program serves as a model of successful cooperation
between three States (Colorado, Utah, and Wyoming), Federal agencies,
water development interests, power users and the environmental
community in the recovery of four endangered fish species. The
Conservancy supports $4 million in fiscal 2005 for the Bureau of
Reclamation's portion of this multiagency program.
Thank you for the opportunity to present The Nature Conservancy's
comments on the Energy and Water Appropriations bill. We recognize that
you receive many worthy requests for funding each year and appreciate
your consideration of these requests and the generous support you have
shown for these and other conservation programs in the past. If you
have any further questions, please do not hesitate to contact me.
______
DEPARTMENT OF THE INTERIOR
Bureau of Reclamation
Prepared Statement of the Colorado River Board of California
Your support and leadership are needed in securing adequate fiscal
year 2004 funding for the Department of the Interior with respect to
the Federal/State Colorado River Basin Salinity Control Program.
Congress has designated the Department of the Interior, Bureau of
Reclamation (Reclamation) to be the lead agency for salinity control in
the Colorado River Basin. This successful and cost effective program is
carried out pursuant to the Colorado River Basin Salinity Control Act
and the Clean Water Act. California's Colorado River water users are
presently suffering economic damages in the hundreds of million of
dollars per year due to the river's salinity.
The Colorado River Board of California (Colorado River Board) is
the State agency charged with protecting California's interests and
rights in the water and power resources of the Colorado River System.
In this capacity, California along with the other six Basin States
through the Colorado River Basin Salinity Control Forum (Forum), the
interstate organization responsible for coordinating the Basin States'
salinity control efforts, established numeric criteria in June 1975,
for salinity concentrations in the River. These criteria were
established to lessen the future damages in the Lower Basin States, as
well as, assist the United States in delivering water of adequate
quality to Mexico in accordance with Minute 242 of the International
Boundary and Water Commission. The goal of the Colorado River Basin
Salinity Control Program is to offset the effects of water resource
development in the Colorado River Basin after 1972 rather than to
reduce the salinity of the River below levels that were caused by
natural variations in river flows or human activities prior to 1972. To
maintain these levels, the salinity control program must remove
1,800,000 tons of salt loading from the River by the year 2020. In the
Forum's last report entitled 2002 Review, Water Quality Standards for
Salinity, Colorado River System (2002 Review) released in October 2002,
the Forum found that additional salinity control measures that remove
salt from the River in the order of 1,000,000 tons are needed to meet
the implementation plan. The plan for water quality control of the
River has been adopted by the States and approved by the Environmental
Protection Agency. To date, Reclamation has been successful in
implementing projects for preventing salt from entering the River
system; however, many more potential projects for salt reduction have
been identified that can be controlled with Reclamation's Basin-wide
Salinity Control Program. The Forum has presented testimony to Congress
in which it has stated that the rate of implementation of the program
beyond that which has been funded in the past is necessary.
In 2000, Congress reviewed the salinity control program as
authorized in 1995. Following hearings, and with the administration's
support, the Congress passed legislation that increased the ceiling
authorization for this program by $100 million. Reclamation has
received proposals to move the program ahead and the seven Basin States
have agreed to up-front cost sharing on an annual basis, which adds 43
cents for every Federal dollar appropriated.
In previous years, the President has supported, and Congress has
funded the Bureau of Reclamation's Basinwide Salinity Control Program
at about $12 million. The Forum has indicated that the President's
request for funding for fiscal year 2005 in the amount of $9,064,000 is
inappropriately low. The Forum has requested a total of $17.5 million
for fiscal year 2005 to implement the needed and authorized program.
The Colorado River Board supports the Forum's recommendation and
believes that failure to appropriate these funds may result in
significant economic damages in the United States and Mexico. Water
quality commitments to downstream U.S. and Mexican users must be
honored while the Basin States continue to develop their Compact
apportioned waters from the Colorado River. For every 30 mg/l increase
in salinity concentration in the River, there is $75 million in
additional damages in the United States.
Based upon past appropriations, implementation of salinity control
measures has fallen behind the needed pace to prevent salinity
concentration levels from exceeding the numeric criteria adopted by the
Forum and approved by the EPA. The seven Colorado River Basin States
have carefully evaluated the Federal funding needs of the program and
have concluded that an adequate budget is needed for the plan of
implementation to maintain the salinity standards for the River. With
the newly authorized USDA EQIP program, more on-farm funds are
available and adequate funds for Reclamation are needed to maximize
Reclamation's effectiveness. The Forum, at its meeting in San Diego,
California, in October 2002, recommended a funding level of $17,500,000
for Reclamation's Basinwide Salinity Control Program to continue
implementation of needed projects and begin to reduce the ``backlog''
of projects.
In addition, the Colorado River Board recognizes that the Federal
Government has made significant commitments to the Republic of Mexico
and to the seven Colorado River Basin States with regard to the
delivery of quality water to Mexico. In order for those commitments to
be honored, it is essential that in fiscal year 2005 and in future
fiscal years, that Congress provide funds to the Bureau of Reclamation
for the continued operation of completed projects.
The Colorado River is, and will continue to be, a major and vital
water resource to the 17 million residents of southern California.
Preservation of its water quality through an effective salinity control
program will avoid the additional economic damages to users in
California.
The Colorado River Board greatly appreciates your support of the
Federal/State Colorado River Basin Salinity Control Program and again
asks for your assistance and leadership in securing adequate funding
for this program.
______
Prepared Statement of the Department of Natural Resources, State of
Utah
As the Governor of Utah's representative on Colorado River Issues
and the senior Utah member of the Colorado River Salinity Control
Forum, I wish to convey Utah's support for funding the Salinity Title
II Program, authorized in 1995 (Public Law 104-20) at the level of
$17,500,000 for 2005 for the United States Bureau of Reclamation (BOR).
In addition, Utah requests funds be provided the BOR for General
Investigations and the Operation and Maintenance of salinity facilities
at sufficient funding levels to meet the objectives of the Salinity
Control Act as amended.
This vital program has been a mainstay in improving water use
efficiency in the Colorado River Basin of Utah. During the past 5 years
of drought, the facilities funded by the BOR program have been a
significant reason for agriculture in the Uinta and Price/San Raphael
basins maintaining productivity and stimulating these rural economies.
In addition, the Salinity Control Program helped to meet the
salinity related water quality standards for the Colorado River and
U.S. treaty obligation with Mexico. This important program helps meet
national and international obligations and needs to be funded at the
$17,500,000 level with additional funds for investigations and
operation and maintenance.
Thank you.
______
Prepared Statement of the Irrigation & Electrical Districts'
Association of Arizona
We are pleased to present this written testimony on behalf of our
25 members and associate members which serve water and power from the
Colorado River and other sources to rural and urban Arizona
communities, farms and businesses. Our comments are directed to the
budgets of the U.S. Bureau of Reclamation (Reclamation) and the Western
Area Power Administration (Western), whose budget requests we generally
support with certain specific reservations, which we will note.
BUREAU OF RECLAMATION
We do not support the proposed Reclamation budget as to four
specific items: Security Costs, Animas-La Plata, Yuma Desalter, and
Central Arizona Project Tucson Reliability Division.
Security Costs.--We oppose the shift of approximately $12 million
for guards and surveillance to reimbursable status. Congress has
approved this post-9/11 expense increase as non-reimbursable for the
last 2 years. This change unfairly saddles local power and water users
in some projects with the costs of this national obligation. If the
Homeland Security budget can provide in excess of $3 billion (fiscal
year 2004) for the Nation's airports, surely the West's premier
Reclamation dams deserve the same treatment. We endorse and support the
testimony of the Colorado River Energy Distributors' Association
(CREDA) on this subject.
Animas-La Plata.--This project requires some $10 million for
electric transmission system construction. We join CREDA in requesting
that this amount not be imposed on Colorado River Storage Project power
contractors whose customers will derive no benefit from this facility.
Forcing them to pay for this non-irrigation use facility will
constitute a serious departure from over 100 years of Reclamation law.
Yuma Desalter and Tucson Reliability Division.--We support the
testimony of the Central Arizona Water Conservation District (CAWCD)
generally, and specifically on these subjects. Without the Desalter,
Central Arizona's 4.5 million people will continue to be penalized some
100,000 acre-feet per year of water supply due to the Central Arizona
Project's junior status as a Colorado River water user. Additionally,
Reclamation needs to request Tucson Reliability Division funds only
after consultation with CAWCD and not jeopardize its pending lawsuit
settlement and the associated Gila River Indian Settlement.
WESTERN AREA POWER ADMINISTRATION
Our comments on Western's budget will track the order in which the
subjects appear in Western's budget justification document.
Use of Receipts.--We oppose Use of Receipts authority for Western
at this time. Western has offered no check and balance proposal to
substitute for reduced Congressional oversight. Retail competition in
the West is problematic, to say the least, and the bare notice and
comment Western rate process has never generated effective cost
control. Moreover, Western believes it has the authority to require
advance funding in its contracts (Federal Register 5/5/03). If true,
contract renewals and amendments will gradually shift Western totally
off-budget.
Security Costs.--Western's $1.4 million in security costs should be
non-reimbursable for the same reasons that Reclamation's should be. As
a dichotomy of a former uniform Reclamation program, Western's role is
tied to Reclamation's. It is hard to believe that over 17,000 miles of
Federal transmission system do not rise in importance to a national
obligation, given the essential place this system occupies in 15
Western States.
Quartzsite Line Relocation.--We oppose this expenditure at this
time. There is no electrical need for this action. Alternative routes
are still being negotiated with the Bureau of Land Management and the
necessary environmental clearance processes haven't even started. The
encroachments have existed for many years without incident. This
project should be postponed until Western identifies an electrical
need, a negotiated route, and a true cost estimate based on that route.
Transmission Lines.--The Black Point Mesa--Blythe No. 1 request may
be insufficient since the Fish and Wildlife Service is insisting that
Western purchase land for the Desert Tortoise in southeastern
California because Western wants to replace aging wood poles (a routine
operation and maintenance function) in an area that is not critical
habitat for this species.
South of Phoenix.--We vigorously support work programmed for
substations in this portion of Western's Parker-Davis Project
transmission system. The area in question is growing like Topsy and
Western's integrated facilities are aged and undersized. Congress has
earmarked funds for this work for the last 3 years.
Davis-Mead, Davis-Topock.--We would oppose the addition of any
reimbursable construction funding for this line replacement using the
3M aluminum matrix composite conductor. Adding this cost would more
than double Western's rehabilitation and construction budget. We
anticipate a request for this expenditure. If done as a non-
reimbursable experiment, we would not object. We note, however, that
replacing one line yields little extra capacity since reliability
standards require the new line to carry no more power than the second
adjacent line could absorb in a first line outage.
Purchase Power and Wheeling.--Once again, Western proposes chopping
funding for this vital activity even though Congress has repeatedly
provided the funding. The scoring problem has been fixed. There is no
sound policy reason for not funding this activity. The position that
somehow small public power, Indian and other customers can magically
find over $200 million to borrow and/or advance fund this critical
firming program is absurd. Most of Western's customers are small and
resource limited. Western can't be allowed to summarily abandon them to
their fate.
Thank you for the opportunity to present our views. Please feel
free to get in touch with us if we can be of any further service,
answer any questions, or supply additional detail on our comments.
______
Prepared Statement of the Garrison Diversion Conservancy District
Mr. Chairman and members of the committee, my name is Dave Koland;
I serve as the manager of the Garrison Diversion Conservancy District.
The mission of the District is to provide a reliable, high quality and
affordable water supply to the areas of need in North Dakota. Over 77
percent of our State residents live within the boundaries of the
District. I would like to comment on the impact the President's fiscal
year 2005 budget request for the Garrison Diversion Unit has on the
effort to provide reliable, high quality and affordable water supplies
to the citizens of North Dakota.
The President's fiscal year 2005 budget request was pitifully
inadequate in meeting the commitments the Federal Government has made
to North Dakota. In return for accepting a permanent flood on 500,000
acres of prime North Dakota river valley the Federal Government
promised the State and tribes that they would be compensated as the
dams were built. The dams were completed 50 years ago and still we wait
for the promised compensation. At the rate of payment the President's
budget proposes the Federal Government will not even be able to stay
current with the indexing applied by law on their commitment to North
Dakota.
The MR&I program was started in 1986 after the Garrison Diversion
Unit was reformulated from a million-acre irrigation project into a
multipurpose project with emphasis on the development and delivery of
municipal and rural water supplies. The State-wide MR&I program has
focused on providing grant funds for water systems that provide water
service to previously unserved areas of the State. The State has
followed a policy of developing a network of regional water systems
throughout the State. Every rural water system that has been built in
North Dakota is still operating. They are providing safe, clean water
to their members, reducing their debt, putting money in reserve,
complying with every State and Federal regulation, and doing so with a
stable, prudent rate structure.
NORTH DAKOTA'S SUCCESS STORY
More importantly, people are living on farmsteads with a rural
water connection, while farmsteads without decent water stand empty.
For instance, Sheridan County lost 20.4 percent of its population
between 1990 and 2000, yet the rural water system serving that county
hardly lost a connection. Good water does make a difference as to where
people choose to live. Rural communities offer the experiences and
lifestyle many people seek to raise their family.
The key to providing water to small communities and rural areas has
been the Grant and Loan program of Rural Development and the MR&I
program jointly operated by the Garrison Diversion Conservancy District
and the State Water Commission. Without the assistance of these two
grant programs, the exodus from the rural areas would have been a
stampede.
Rural water systems are being constructed using a unique blend of
local expertise, State financing, rural development loans, MR&I grant
funds to provide an affordable rate structure, and the expertise of the
Bureau of Reclamation to deal with design and environmental issues. The
projects are successful because they are driven by a local need to
solve a water quantity or quality problem. The solution to the local
problem is devised by the community being affected by the problem. The
early, local buy-in helps propel the project through the tortuous pre-
construction stages.
The MR&I program has been so successful and so important to North
Dakota that the North Dakota Legislature loaned the program $15 million
to help deal with the severe lag time that has developed in the Federal
appropriations process.
The desperate need for clean, safe water is evidenced by the
willingness of North Dakota's rural residents to pay water rates well
above the rates EPA considers affordable. The EPA Economic Guidance
Workbook states that rates greater than 1.5 percent of the median
household income (MHI) are not only unaffordable, but also ``may be
unreasonable''.
The average monthly cost on a rural water system for 6,000 gallons
of water is currently $48.97. The water rates in rural North Dakota
would soar to astronomical levels without the 75 percent grant dollars
in the MR&I program. For instance, current rates would have to average
a truly unaffordable $134.19/month or a whopping 3.8 percent of the
MHI. Rates would have ranged as high as $190.80/month or a prohibitive
5.3 percent of MHI without the assistance of the MR&I program.
The people waiting for water in our rural communities are willing
to pay far more than what many consider an affordable, or even
reasonable, price for clean, safe water.
ENVIRONMENTAL LAWS
The Bureau of Reclamation plays a vital role by ensuring compliance
with the National Environmental Policy Act of 1969 (NEPA), providing
system design oversight and dealing with international issues. Such is
the case with the Northwest Area Water Supply Project (NAWS). Canada
and the province of Manitoba have filed a lawsuit protesting the very
thorough Final Environmental Assessment and the subsequent Finding of
No Significant Impact on the NAWS project.
One reason for the success of the North Dakota program is the
reliance on local control. Decision-making is accomplished at the
lowest level possible. The decision on who the system can afford to
provide service to and the rate structure is made by a local board of
directors composed of members who will be served by the water system.
Volunteer involvement and low administrative costs are hallmarks of the
program. Engineering services are typically provided by local firms
that have experience in designing and constructing systems in North
Dakota.
Across North Dakota, we have seen the impact of providing high
quality water to rural areas and witnessed the dramatic change in small
communities. Homes once occupied by aging widows are soon rented or
sold to young adults, while houses and farmsteads without rural water
stand empty.
Good drinking water is just a dream in many rural North Dakota
communities. Turning on the tap each morning brings brown, smelly water
instead of the clear, fresh water a majority of people in North Dakota
enjoy.
The opportunity to have an impact in rural North Dakota is now. If
we do nothing, it is easy to predict what will occur in rural North
Dakota. We only need to look at counties without good water.
It is in the best interest of North Dakota and the 150+ local
communities not yet served by a regional system that we build every
piece of rural infrastructure that is feasible. We must continue to
build on what has proven so successful in the past.
Providing a reliable source of good, clean water in rural areas has
worked to stabilize the rural economy in North Dakota. The combination
of leveraging Rural Development loan funds with MR&I grant dollars has
provided a cost efficient, long-term solution to the rural communities
in North Dakota.
If we act now, we can make a difference in rural North Dakota.
Providing for healthy, vibrant rural communities is good for North
Dakota and good for our Nation. We know from past experience that
providing good water for rural communities is one sure way of helping
people change the future.
Indeed the MR&I program in North Dakota would serve as an
outstanding example of a successful program that could be implemented
in other States.
DISCUSSION OF OVERALL BUREAU OF RECLAMATION BUDGET
It is important to recognize that the fiscal year 2005 budget
submission of $828.5 million for the Bureau of Reclamation's Water and
Related Resources program is $57.5 million better than their request
for fiscal year 2004. It is $171.5 million less than has been called
for by the ``Invest in the West'' Coalition, a coalition of nine
western water organizations that are involved in the full array of
western water issues.
The ``Invest in the West'' goal, one with which I agree, is to
raise the Bureau's Water and Related Resources Budget to $1 billion by
the end of fiscal year 2005. This is simply a goal to restore the
budget to previous levels. The erosion of the Bureau's budget during
the 1990's has created problems across the west for virtually all of
its constituents.
BUDGET IMPACTS ON GARRISON DIVERSION UNIT
At this point, I would like to shift to the particulars of the
budget as it impacts the Garrison Diversion program and some specific
projects within the State of North Dakota. Let me begin by reviewing
the various elements within the current budget request and then discuss
the impacts that the current level of funding will have on the current
program.
Attachment 1 shows the funding history over the last 8 years for
the Garrison Diversion Unit. The average is approximately $26.6
million. The President's budget request for fiscal year 2005 is $22.1
million. A continuation of that trend is a formula for disaster. The
President's budget request does not even maintain the historic funding
level and ignores the needs of the current programs and does not keep
up with the price increases expected in the major programs as delays
occur. Fortunately, Congress saw fit to provide that the unexpended
authorization ceilings would be indexed annually to adjust for
inflation in the construction industry. The proposed allocation to the
indexed programs in the President's budget is $6.9 million. If a modest
2 percent inflation factor is assumed, the increase will be $8 million
for MR&I and $2 million for the Red River Valley phase. Simply put,
with the current request, we will lose ground on the completion of
these projects.
This year, the District is asking the Congress to appropriate a
total of $77.3 million for the Project. Attachment 2 is a breakdown of
the elements in the District's request. To discuss this in more detail,
I must first explain that the Garrison budget consists of several
different program items. For ease of discussion, I would like to
simplify the breakdown into three major categories. The first I would
call the base operations portion of the budget request. Attachment 3
contains a breakdown of the elements in that portion of the budget.
This amount is nominally $22 million annually when you include
underfinancing. However, as more Indian MR&I projects are completed,
the operation and maintenance costs for these projects will increase
and create a need that will need to be addressed.
The second element of the budget is the MR&I portion. This consists
of both Indian and non-Indian funding. The Dakota Water Resources Act
contains an additional $200 million authorization for each of these
programs. It is our intent that each program reaches the conclusion of
the funding authorization at the same time. We believe this is only
fair.
The MR&I program consists of a number of medium-sized projects that
are independent of one another. They generally run in the $20 million
category. Some are, of course, smaller and others somewhat larger, but
one that is considerably larger is the Northwest Area Water Supply
Project (NAWS). The first phase of that project is under construction.
The optimum construction schedule for completion of the first phase has
been determined to be 5 years. The total cost of the first phase is $66
million. At a 65 percent cost share, the Federal funding needed to
support that program is $43 million. On the average, the annual funding
for that project alone is over $8 million. Four other projects have
been approved for future funding and numerous projects on the
reservations are ready to begin construction. These requests will all
compete with one another. It will be a delicate challenge to balance
these projects. Nevertheless, we believe that once a project is
started, it needs to be pursued vigorously to completion. If it is not,
we simply run the cost up and increase the risk of incompatibility
among the working parts.
An example of the former would be the certain impact of the
increased cost of construction over time through inflation but also by
protracting the engineering and administration costs and ``interest-
during-construction'' costs.
The third element of the budget is the Red River Valley Water
Supply Project (RRV) construction phase. The Dakota Water Resources Act
authorized $200 million for the construction of facilities to meet the
water quality and quantity needs of the Red River Valley communities.
It is my belief that the final plans and authorizations, if necessary,
should be expected in approximately 5 years. This will create an
immediate need for greater construction funding.
This major project, once started, should be pursued vigorously to
completion. The reasons are the same as for the NAWS project and relate
to good engineering construction management. Although difficult to
predict at this time, it is reasonable to plan that the RRV project
features, once started, should be completed in approximately 7 years.
This creates a need for an additional $25 million. Fortunately, it
appears the RRV project start will probably follow the completion of
the NAWS first phase.
Using these two projects as examples frames the argument for a
steadily increasing budget. First, to accelerate the MR&I program in
early years to assure the timely completion of the NAWS project and
then to ready the budget for a smaller MR&I allocation when the RRV
project construction begins.
Attachment 4 illustrates the level of funding for the two major
items, MR&I and RRV. It is quickly apparent that if a straight-line
appropriation is used for each, a funding spike will occur in the sixth
year. That is when an additional $25 million will suddenly be needed
for the RRV program. It is simply good management to blend these needs
to avoid drastic hills and valleys in the budget requests. By
accelerating the construction of NAWS and other projects which are
ready for construction during the early years, some of the pressure
will be off when the RRV project construction funding is needed. A
smoother, more efficient construction program over time will be the
result.
Attachment 5 shows such a program. It begins with a $77.3 million
budget this year and gradually builds over time to over $140 million
when the RRV construction could be in full swing (fiscal year 2010).
Mr. Chairman, this is why we believe it is important that the budget
resolution recognize that a robust increase in the budget allocation is
needed for the Bureau of Reclamation. We hope this testimony will serve
as at least one example of why we fully support the efforts of the
``Invest in the West'' campaign to increase the overall allocation by
$171.4 million in fiscal year 2005 to a total of $1 billion.
The Bureau of Reclamation, Rural Development, Garrison Diversion
Conservancy District, State Water Commission and local rural water
districts have formed a formidable alliance to deal with the lack of a
high quality, reliable water source throughout much of North Dakota.
This cost-effective partnership of local control, State-wide guidance
and Federal support have combined to provide safe, clean, potable water
to hundreds of communities and thousands of homes across North Dakota.
ATTACHMENT 1
ATTACHMENT 2.--GARRISON DIVERSION UNIT (GDU) JUSTIFICATION FOR $77.3
MILLION APPROPRIATION FISCAL YEAR 2005
North Dakota's Municipal, Rural and Industrial (MR&I) water program
funds construction projects State-wide under the joint administration
of the Garrison Diversion Conservancy District (GDCD) and the State
Water Commission (SWC).
Northwest Area Water Supply Project (NAWS) is under construction
after 15 years of study and diplomatic delay. Construction costs are
estimated to be $81 million.
Designs are based on a 5-year construction period; thus, over $16
million is needed for NAWS alone. Indian MR&I programs are also under
construction. Tribal and State leaders have agreed to split the Indian
and non-Indian MR&I allocation on a 50/50 basis.
Williston Water Treatment Plant, Williams Rural Water and Tribal
MR&I programs are under construction.
[In millions of dollars]
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Operation and Maintenance of Indian MR&I Systems plus 3.4
Jamestown Dam...............................................
Breakdown of $73.9 million Construction Request:
Operation and Maintenance of existing GDU system......... 5.0
Wildlife Mitigation & Natural Resources Trust............ 6.0
Red River Valley Special Studies and EIS................. 2.6
Indian and non-Indian MR&I............................... 50.0
Indian Irrigation........................................ 2.7
Recreation............................................... 0.6
Under financing 10 percent............................... 7.0
----------
Total for Construction................................. 73.9
----------
Grand Total............................................ 77.3
------------------------------------------------------------------------
ATTACHMENT 3.--ELEMENTS OF THE BASE OPERATIONS PORTION OF THE GARRISON
DIVERSION UNIT BUDGET FISCAL YEAR 2005
[In millions of dollars]
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Operation and Maintenance of Indian MR&I systems and 3.4
Jamestown Dam...............................................
Operation and Maintenance of Existing GDU facilities......... 5.0
Wildlife Mitigation & Natural Resources Trust................ 6.0
Red River Valley Special Studies and EIS..................... 2.6
Indian Irrigation............................................ 2.7
Recreation................................................... 0.6
Under financing at 10 percent................................ 2.0
----------
Total.................................................. 22.3
------------------------------------------------------------------------
ATTACHMENT 4
ATTACHMENT 5
______
Prepared Statement of the Provo River Water Users Association
Chairman Domenici and Senator Reid, I am writing to request your
support for an appropriation in fiscal year 2005 of $5,234,000 to the
Bureau of Reclamation within the budget line item entitled ``Endangered
Species Recovery Implementation Program'' for the Upper Colorado River
Region. The President's recommended budget for fiscal year 2005
includes this line-item amount. Of these funds, I respectfully request
the designation of $4,008,000 for the Upper Colorado River Endangered
Fish Recovery Program; $691,000 for the San Juan River Basin Recovery
Implementation Program and $535,000 for Fish and Wildlife Management
and Development, consistent with the President's budget request. The
requested fiscal year 2005 appropriation will allow construction of
fish passage, floodplain restoration activities, screening of existing
diversion canals, propagation facilities, endangered fish stocking, and
non-native fish management.
These funds are authorized by Public Law 106-392. Substantial non-
Federal cost sharing funds are provided by the States of Colorado,
Wyoming, Utah, and New Mexico, power users, and water users in support
of these recovery programs. These programs are carried out consistent
with State law and interstate water compacts.
The past support and assistance of your subcommittee has greatly
facilitated the success of these multi-State, multi-agency programs. I
request the subcommittee's assistance relative to fiscal year 2005
funding to ensure the Bureau of Reclamation's continuing financial
participation in these vitally important programs.
______
Prepared Statement of the Duchesne County Water Conservancy District
I am writing to request your support for an appropriation in fiscal
year 2005 of $5,234,000 to the Bureau of Reclamation within the budget
line item entitled ``Endangered Species Recovery Implementation
Program'' for the Upper Colorado River Region. The President's
recommended budget for fiscal year 2005 includes this line-item amount.
Of these funds, I respectfully request the designation of $4,008,000
for the Upper Colorado River Endangered Fish Recovery Program; $691,000
for the San Juan River Basin Recovery Implementation Program and
$535,000 for Fish and Wildlife Management and Development, consistent
with the President's budget request. The requested fiscal year 2005
appropriation will allow construction of fish passage, floodplain
restoration activities, screening of existing diversion canals,
propagation facilities, endangered fish stocking, and non-native fish
management.
These funds are authorized by Public Law 106-392. Substantial non-
Federal cost sharing funds are provided by the States of Colorado,
Wyoming, Utah, and New Mexico, power users, and water users in support
of these recovery programs. These programs are carried out consistent
with State law and interstate water compacts.
The past support and assistance of your subcommittee has greatly
facilitated the success of these multi-State, multi-agency programs. I
request the subcommittee's assistance relative to fiscal year 2005
funding to ensure the Bureau of Reclamation's continuing financial
participation in these vitally important programs.
______
Prepared Statement of the Jordan Valley Water Conservancy District
I am writing to request your support for an appropriation in fiscal
year 2005 of $5,234,000 to the Bureau of Reclamation within the budget
line item entitled ``Endangered Species Recovery Implementation
Program'' for the Upper Colorado River Region. The President's
recommended budget for fiscal year 2005 includes this line-item amount.
Of these funds, I respectfully request the designation of $4,008,000
for the Upper Colorado River Endangered Fish Recovery Program; $691,000
for the San Juan River Basin Recovery Implementation Program and
$535,000 for Fish and Wildlife Management and Development, consistent
with the President's budget request. The requested fiscal year 2005
appropriation will allow construction of fish passage, floodplain
restoration activities, screening of existing diversion canals,
propagation facilities, endangered fish stocking, and non-native fish
management.
These funds are authorized by Public Law 106-392. Substantial non-
Federal cost sharing funds are provided by the States of Colorado,
Wyoming, Utah, and New Mexico, power users, and water users in support
of these recovery programs. These programs are carried out consistent
with State law and interstate water compacts.
The past support and assistance of your subcommittee has greatly
facilitated the success of these multi-State, multi-agency programs. I
request the subcommittee's assistance relative to fiscal year 2005
funding to ensure the Bureau of Reclamation's continuing financial
participation in these vitally important programs.
______
Prepared Statement of Colorado Springs Utilities
I am writing to request your support for an appropriation in fiscal
year 2005 of $5,234,000 to the Bureau of Reclamation within the budget
line item entitled ``Endangered Species Recovery Implementation
Program'' for the Upper Colorado River Region. The President's
recommended budget for fiscal year 2005 includes this line-item amount.
Of these funds, I respectfully request the designation of $4,008,000
for the Upper Colorado River Endangered Fish Recovery Program; $691,000
for the San Juan River Basin Recovery Implementation Program and
$535,000 for Fish and Wildlife Management and Development, consistent
with the President's budget request. The requested fiscal year 2005
appropriation will allow construction of fish passage, floodplain
restoration activities, screening of existing diversion canals,
propagation facilities, endangered fish stocking, and non-native fish
management.
These funds are authorized by Public Law 106-392. Substantial non-
Federal cost sharing funds are provided by the States of Colorado,
Wyoming, Utah, and New Mexico, power users, and water users in support
of these recovery programs. These programs are carried out consistent
with State law and interstate water compacts.
The past support and assistance of your subcommittee has greatly
facilitated the success of these multi-State, multi-agency programs. I
request the subcommittee's assistance relative to fiscal year 2005
funding to ensure the Bureau of Reclamation's continuing financial
participation in these vitally important programs.
______
Prepared Statement of the Dolores Water Conservancy District
I am writing to request your support for an appropriation in fiscal
year 2005 of $5,234,000 to the Bureau of Reclamation within the budget
line item entitled ``Endangered Species Recovery Implementation
Program'' for the Upper Colorado River Region. The President's
recommended budget for fiscal year 2005 includes this line-item amount.
Of these funds, I respectfully request the designation of $4,008,000
for the Upper Colorado River Endangered Fish Recovery Program; $691,000
for the San Juan River Basin Recovery Implementation Program and
$535,000 for Fish and Wildlife Management and Development, consistent
with the President's budget request. The requested fiscal year 2005
appropriation will allow construction of fish passage, floodplain
restoration activities, screening of existing diversion canals,
propagation facilities, endangered fish stocking, and non-native fish
management.
These funds are authorized by Public Law 106-392. Substantial non-
Federal cost sharing funds are provided by the States of Colorado,
Wyoming, Utah, and New Mexico, power users, and water users in support
of these recovery programs. These programs are carried out consistent
with State law and interstate water compacts.
The past support and assistance of your subcommittee has greatly
facilitated the success of these multi-State, multi-agency programs. I
request the subcommittee's assistance relative to fiscal year 2005
funding to ensure the Bureau of Reclamation's continuing financial
participation in these vitally important programs.
______
Prepared Statement of the Perkins County Rural Water System, Inc.
Perkins County Rural Water System, Inc. respectfully submits this
written testimony to the Appropriations Subcommittee on Energy and
Water Development for appropriations of $5.0 million for fiscal year
2005. This project was authorized under Public Law 106-136.
Perkins County Rural Water System, (PCRWS) has the approval of the
Office of Management and Budget and the Bureau of Reclamation to
proceed with construction in 2004. We have been appropriated $7.6
million in years 2002 and 2003. We were appropriated $1.0 million in
2004. The administration has approved us in the budget for $500,000 for
fiscal year 2005. We would not be able to keep our construction on
schedule if we are appropriated this amount of money. Cost share for
the system is 75 percent Federal, 15 percent local and 10 percent
State. The State of South Dakota has offered to loan PCRWS the local
share for 40 years at 3 percent interest to keep costs down to the
customer.
Breakdown for the project for 2005 is as follows:
2005 BUDGET
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Income:
Bureau of Reclamation............................... $5,000,000
State of South Dakota............................... 1,250,000
Misc................................................ 75,000
---------------
Total............................................. 6,325,000
===============
Expense:
Mainline to Bison................................... 1,300,000
Mainline to Lemmon.................................. 1,200,000
North Dakota State Water Comm....................... 1,000,000
Reservoir........................................... 500,000
Lemmon Rural Pipe................................... 280,000
Bison & Prairie City Rural.......................... 1,500,000
Administration, Engineering......................... 545,000
---------------
Total............................................. 6,325,000
------------------------------------------------------------------------
PCRWS will need $5.0 million for each of the next 3 years to
complete our project on time. This consists of 550 miles of various
size pipes ranging from 8 inches to 1.5 inches, one pump station
capable of moving 800 gallons per minute, a 1.0 million gallon tank and
telemetry to operate the whole system from one localized location.
The quality of water in Northwest South Dakota is the main concern
for the health and well being of the people. Although the water
typically meets primary standards established by the USEPA, most of the
chemicals in the water are exceedingly high by the State of South
Dakota standards. Water quality and quantity in Perkins County has been
a plague for the county over many years. Droughts, both long and short
term, are a fact of life for the people in this area. Being able to
obtain quality water during these periods and having a backup system
for other times would make life a lot easier for those in the rural
area. Due to the isolation from major water supplies, this may be our
only chance to obtain water at an affordable cost.
On the behalf of the Board of Directors of PCRWS and the people of
Perkins County, South Dakota, thank you for allowing us to enter this
testimony in the subcommittee's report.
______
Prepared Statement of the Northern Colorado Water Conservancy District
Chairman Domenici and Senator Reid, I am writing to request your
support for an appropriation in fiscal year 2005 of $5,234,000 to the
Bureau of Reclamation within the budget line item entitled ``Endangered
Species Recovery Implementation Program'' for the Upper Colorado River
Region. The President's recommended budget for fiscal year 2005
includes this line-item amount. Of these funds, I respectfully request
the designation of $4,008,000 for the Upper Colorado River Endangered
Fish Recovery Program; $691,000 for the San Juan River Basin Recovery
Implementation Program and $535,000 for Fish and Wildlife Management
and Development, consistent with the President's budget request. The
requested fiscal year 2005 appropriation will allow construction of
fish passage, floodplain restoration activities, screening of existing
diversion canals, propagation facilities, endangered fish stocking, and
non-native fish management.
These funds are authorized by Public Law 106-392. Substantial non-
Federal cost sharing funds are provided by the States of Colorado,
Wyoming, Utah, and New Mexico, power users, and water users in support
of these recovery programs. These programs are carried out consistent
with State law and interstate water compacts.
The past support and assistance of your subcommittee has greatly
facilitated the success of these multi-State, multi-agency programs. I
request the subcommittee's assistance relative to fiscal year 2005
funding to ensure the Bureau of Reclamation's continuing financial
participation in these vitally important programs.
______
Prepared Statement of the Four Corners Power Plant
Chairman Domenici and Senator Reid, I am writing to request your
support for an appropriation in fiscal year 2005 of $5,234,000 to the
Bureau of Reclamation within the budget line item entitled ``Endangered
Species Recovery Implementation Program'' for the Upper Colorado River
Region. The President's recommended budget for fiscal year 2005
includes this line-item amount. Of these funds, I respectfully request
the designation of $4,008,000 for the Upper Colorado River Endangered
Fish Recovery Program; $691,000 for the San Juan River Basin Recovery
Implementation Program and $535,000 for Fish and Wildlife Management
and Development, consistent with the President's budget request. The
requested fiscal year 2005 appropriation will allow construction of
fish passage, floodplain restoration activities, screening of existing
diversion canals, propagation facilities, endangered fish stocking, and
non-native fish management.
These funds are authorized by Public Law 106-392. Substantial non-
Federal cost sharing funds are provided by the States of Colorado,
Wyoming, Utah, and New Mexico, power users, and water users in support
of these recovery programs. These programs are carried out consistent
with State law and interstate water compacts.
The past support and assistance of your subcommittee has greatly
facilitated the success of these multi-State, multi-agency programs. I
request the subcommittee's assistance relative to fiscal year 2005
funding to ensure the Bureau of Reclamation's continuing financial
participation in these vitally important programs.
______
Prepared Statement of the Public Service Company of New Mexico
I am writing to request your support for an appropriation in fiscal
year 2005 of $5,234,000 to the Bureau of Reclamation within the budget
line item entitled ``Endangered Species Recovery Implementation
Program'' for the Upper Colorado River Region. The President's
recommended budget for fiscal year 2005 includes this line-item amount.
Of these funds, I respectfully request the designation of $4,008,000
for the Upper Colorado River Endangered Fish Recovery Program; $691,000
for the San Juan River Basin Recovery Implementation Program and
$535,000 for Fish and Wildlife Management and Development, consistent
with the President's budget request. The requested fiscal year 2005
appropriation will allow construction of fish passage, floodplain
restoration activities, screening of existing diversion canals,
propagation facilities, endangered fish stocking, and non-native fish
management.
These funds are authorized by Public Law 106-392. Substantial non-
Federal cost sharing funds are provided by the States of Colorado,
Wyoming, Utah, and New Mexico, power users, and water users in support
of these recovery programs. These programs are carried out consistent
with State law and interstate water compacts.
The past support and assistance of your subcommittee has greatly
facilitated the success of these multi-State, multi-agency programs. I
request the subcommittee's assistance relative to fiscal year 2005
funding to ensure the Bureau of Reclamation's continuing financial
participation in these vitally important programs.
______
Prepared Statement of the Grand Valley Water Users Association
I am writing to request your support for an appropriation in fiscal
year 2005 of $5,234,000 to the Bureau of Reclamation within the budget
line item entitled ``Endangered Species Recovery Implementation
Program'' for the Upper Colorado River Region. The President's
recommended budget for fiscal year 2005 includes this line-item amount.
Of these funds, I respectfully request the designation of $4,008,000
for the Upper Colorado River Endangered Fish Recovery Program; $691,000
for the San Juan River Basin Recovery Implementation Program and
$535,000 for Fish and Wildlife Management and Development, consistent
with the President's budget request. The requested fiscal year 2005
appropriation will allow construction of fish passage, floodplain
restoration activities, screening of existing diversion canals,
propagation facilities, endangered fish stocking, and non-native fish
management.
These funds are authorized by Public Law 106-392. Substantial non-
Federal cost sharing funds are provided by the States of Colorado,
Wyoming, Utah, and New Mexico, power users, and water users in support
of these recovery programs. These programs are carried out consistent
with State law and interstate water compacts.
The past support and assistance of your subcommittee has greatly
facilitated the success of these multi-State, multi-agency programs. I
request the subcommittee's assistance relative to fiscal year 2005
funding to ensure the Bureau of Reclamation's continuing financial
participation in these vitally important programs.
______
Prepared Statement of the Colorado River Basin Salinity Control Forum
Colorado River Basin Salinity Control Forum's Recommendation:
--Title II Program Authorized in 1995 (Public Law 104-20)--
$17,500,000.
--General Investigation Funds--Adequate Funding.
--Operation and Maintenance--Adequate Funding.
This testimony is in support of funding for the Title II Colorado
River Basin Salinity Control Program (Program). Congress has designated
the Department of the Interior, Bureau of Reclamation (Reclamation), to
be the lead agency for salinity control in the Colorado River Basin.
This role and the authorized program were refined and confirmed by the
Congress when Public Law 104-20 was enacted. A total of $17,500,000 is
requested for fiscal year 2005 to implement the needed and authorized
program. Failure to appropriate these funds will result in significant
economic damage in the United States and Mexico.
In previous years, the President has supported, and Congress has
funded, a program at about $12 million. In recent years, the
President's requests have dropped and this year's request, in the
judgment of the Colorado River Basin Salinity Control Forum (Forum), is
inappropriately low. This year's administration request is for
$9,064,000. Water quality commitments to downstream U.S. and Mexican
water users must be honored while the Basin States continue to develop
their Compact apportioned waters of the Colorado River. Concentrations
of salts in the river cause hundreds of millions of dollars in damage
in the United States and result in poorer quality water being delivered
by the United States to Mexico. For every 30 mg/l increase in salinity
concentrations, there is $75 million in additional damages in the
United States. The Forum, therefore, believes implementation of the
Program needs to be accelerated to a level beyond that requested by the
President.
The Program, authorized by the Congress in 1995, has proven to be
very successful and very cost effective. Proposals from the public and
private sector to implement salinity control strategies have far
exceeded the available funding and Reclamation has a backlog of
proposals. Reclamation continues to select the best and most cost-
effective proposals. Funds are available for the Colorado River Basin
States' cost sharing for the level of Federal funding requested by the
Forum. Water quality improvements accomplished under Title II of the
Colorado River Basin Salinity Control Act (Act) also benefit the
quality of water delivered to Mexico. Although the United States has
always met the commitments of the International Boundary & Water
Commission's (Commission) Minute 242 to Mexico with respect to water
quality, the United States Section of the Commission is currently
addressing Mexico's request for better water quality at the
International Boundary.
Some of the most cost effective salinity control opportunities
occur when the USBR can improve irrigation delivery systems at the same
time that the USDA's program is working with landowners (irrigators) to
improve the on-farm irrigation systems. Through the newly authorized
USDA EQIP, adequate on-farm funds appear to be available and adequate
USBR funds are needed to maximize the effectiveness of the effort.
OVERVIEW
In 2000, Congress reviewed the Program as authorized in 1995.
Following hearings, and with administration support, the Congress
passed legislation that increased the ceiling authorized by this
program by $100 million. Reclamation has received cost-effective
proposals to move the Program ahead and the Basin States have funds
available to cost-share up-front.
The Program was authorized by Congress in 1974. The Title I portion
of the Act responded to commitments that the United States made,
through Minute 242, to Mexico concerning the quality of water being
delivered to Mexico below Imperial Dam. Title II of the Act established
a program to respond to salinity control needs of Colorado River water
users in the United States and to comply with the mandates of the then
newly legislated Clean Water Act. Initially, the Secretary of the
Interior and Reclamation were given the lead Federal role by the
Congress. This testimony is in support of adequate funding for the
Title II program.
After a decade of investigative and implementation efforts, the
Basin States concluded that the Act needed to be amended. Congress
revised the Act in 1984. That revision, while leaving implementation of
the salinity control policy with the Secretary of the Interior, also
gave new salinity control responsibilities to the Department of
Agriculture and to the Bureau of Land Management. Congress has charged
the administration with implementing the most cost-effective program
practicable (measured in dollars per ton of salt removed). The Basin
States are strongly supportive of that concept as the Basin States cost
share 30 percent of Federal expenditures up-front for the Program, in
addition to proceeding to implement their own salinity control efforts
in the Colorado River Basin.
The Forum is composed of gubernatorial appointees from Arizona,
California, Colorado, Nevada, New Mexico, Utah and Wyoming. The Forum
has become the seven-State coordinating body for interfacing with
Federal agencies and Congress to support the implementation of the
Program necessary to control the salinity of the river system. In close
cooperation with the Environmental Protection Agency (EPA) and under
requirements of the Clean Water Act, every 3 years the Forum prepares a
formal report analyzing the salinity of the Colorado River, anticipated
future salinity, and the program necessary to keep the salinities under
control.
In setting water quality standards for the Colorado River system,
the salinity levels measured at Imperial, and below Parker and Hoover
Dams in 1972 have been identified as the numeric criteria. The plan
necessary for controlling salinity and to reduce downstream damages has
been captioned the ``plan of implementation.'' The 2002 Review of water
quality standards includes an updated plan of implementation. The level
of appropriation requested in this testimony is in keeping with the
agreed upon plan. If adequate funds are not appropriated, State and
Federal agencies involved are in agreement that damage from the higher
salt levels in the water will be more widespread in the United States,
as well as in Mexico, and will be very significant.
Although the Program thus far has been able to implement salinity
control measures that comply with the approved plan, recent drought
years have caused salinity levels to rise in the river. Predictions are
that this will be the trend for the next several years. This places an
added urgency for the acceleration of the implementation of the
Program.
JUSTIFICATION
The $17,500,000 requested by the Forum on behalf of the seven
Colorado River Basin States is the level of funding necessary to
proceed with Reclamation's portion of the plan of implementation. In
July of 1995, Congress amended the Act. The amended Act gives
Reclamation new latitude and flexibility in seeking the most cost-
effective salinity control opportunities, and it provides for
utilization of proposals from project proponents, as well as more
involvement from the private as well as the public sector. The result
is that salt loading is being prevented at costs often less than half
the cost under the previous Program. Congress recommitted its support
to the revised program when it enacted Public Law 106-459. The Basin
States' cost sharing up-front adds 43 cents for every Federal dollar
appropriated. The federally chartered Colorado River Basin Salinity
Control Advisory Council, created by the Congress in the Act, has met
and formally supports the requested level of funding. The Basin States
urge the subcommittee to support the funding as set forth in this
testimony.
ADDITIONAL SUPPORT OF FUNDING
In addition to the funding identified above for the implementation
of the most recently authorized program, the Forum urges the Congress
to appropriate necessary funds needed to continue to maintain and
operate salinity control facilities as they are completed and placed
into long-term operation. Reclamation has completed the Paradox Valley
unit which involves the collection of brines in the Paradox Valley of
Colorado and the injection of those brines into a deep aquifer through
an injection well. The continued operation of this project and other
completed projects will be funded through Operation and Maintenance
funds.
In addition, the Forum supports necessary funding to allow for
continued general investigation of the Program. It is important that
Reclamation have planning staff in place, properly funded, so that the
progress of the Program can be analyzed, coordination between various
Federal and State agencies can be accomplished, and future projects and
opportunities to control salinity can be properly planned to maintain
the water quality standards for salinity so that the Basin States can
continue to develop their Compact-apportioned waters of the Colorado
River.
______
Prepared Statement of the Mni Wiconi Project
FISCAL YEAR 2005 CONSTRUCTION BUDGET REQUEST
The Mni Wiconi Project beneficiaries (as listed below) respectfully
request appropriations and can demonstrate capability for construction
in fiscal year 2005 in the amount of $39,317,000 as follows:
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Oglala Sioux Rural Water Supply System:
Core Facilities (Pipelines and Pumping Stations).... $8,128,000
Distribution System on Pine Ridge................... 10,224,000
West River/Lyman-Jones Rural Water System............... 11,020,000
Rosebud Sioux Rural Water System........................ 7,325,000
Lower Brule Sioux Rural Water System.................... 2,620,000
---------------
Total Mni Wiconi Project.......................... 39,317,000
------------------------------------------------------------------------
The project sponsors were provided by the 107th Congress (Public
Law 107-367) with all the authority necessary to finish this project at
the level of development originally intended on a schedule through
fiscal year 2008. Completion of the project is now clearly achievable
as shown in the table below:
------------------------------------------------------------------------
------------------------------------------------------------------------
Total Federal Required (October 2003 Dollars)........... $409,523,000
Estimated Federal Spent Through Fiscal Year 2004........ $278,110,000
Percent Spent........................................... 67.9
Amount Remaining........................................ $131,413,000
Years to Completion..................................... 4
Average Required for Fiscal Year 2008 Finish............ $32,853,000
------------------------------------------------------------------------
The administration's budget for this project in fiscal year 2005
($18.2 million for construction) is a disappointment for a second year
in a row. The amount requested by the administration falls far short of
the average amount needed to complete the project in fiscal year 2008.
The needs and merits of this project are considerable as described in
section 3.
The project's operation, maintenance and replacement request from
the sponsors is in addition to the construction request and is
presented in section 8.
OSRWSS CORE PIPELINE TO REACH PINE RIDGE INDIAN RESERVATION IN FISCAL
YEAR 2005
OGLALA SIOUX WATER SUPPLY SYSTEM CORE REQUEST
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
South Core:
Stamford to Kadoka:
Reservoir to Kadoka Pipeline.................... $1,036,000
Pump Station, 2 Reservoirs...................... 2,111,000
Kadoka to White River Pipeline...................... 2,587,000
North Core:
WTP toward Hayes Pipeline........................... 2,394,000
---------------
Total............................................. 8,128,000
------------------------------------------------------------------------
The Pine Ridge Indian Reservation and parts of West River/Lyman-
Jones remain without points of interconnection to the OSRWSS core. The
requested funding level for the OSRWSS core of $8.128 million will
complete the project from Stamford to the northeast corner of the Pine
Ridge Indian Reservation where, in combination with the western part of
West River/Lyman-Jones, the remaining 50 percent of the design
population resides. Funds will also be used by the Oglala Sioux Tribe
to build the North Core westerly toward Hayes in the West River Lyman
Jones service area with the intent to complete the OSRWSS North Core
and all other core facilities in fiscal year 2007. Two additional years
of funding will be required to complete the OSRWSS North Core system to
serve the Reservation.
The 2000 census confirms that the Oglala Sioux population on Pine
Ridge is growing at a rate of 27 percent per decade or 1\1/2\ times
greater than projected from the 1990 census. Delivery of Missouri River
water to this area is urgently needed.
All proposed OSRWSS construction activity will build pipelines that
will provide Missouri River water immediately to beneficiaries. In many
cases, construction of interconnecting pipelines by other sponsors is
ongoing, and fiscal year 2005 funds are required to complete projects
that will connect with the OSRWSS core and begin others.
Funding for OSRWSS core and distribution facilities is necessary to
bring economic development to the Pine Ridge Indian Reservation,
designated as one of five national rural empowerment zones by the
previous administration. The designation serves to underscore the level
of need. Economic development is largely dependent on the timely
completion of a water system, which depends on appropriations for this
project.
Finally, the subcommittee is respectfully requested to take notice
of the fact that fiscal year 2005 will significantly advance
construction of facilities that continues our progress toward the end
of the project. The subcommittee's past support has brought the project
to the point that the end can be seen. Key to the conclusion of the
project in fiscal year 2008 is the completion of the OSRWSS core to the
Pine Ridge Indian Reservation. Toward this end, funds are included in
the fiscal year 2005 budget to build the connecting pipelines between
the northeast corner of the Pine Ridge Indian Reservation and the
central portion of the Reservation near Kyle. Rosebud is similarly
engaged in the construction of major connecting pipelines that will
deliver water southerly to the central portions of the Rosebud Indian
Reservation and to service areas for West River/Lyman-Jones.
UNIQUE NEEDS OF THIS PROJECT
This project covers much of the area of western South Dakota that
was formerly the Great Sioux Reservation established by the Treaty of
1868. Since the separation of the Reservation in 1889 into smaller more
isolated reservations, including Pine Ridge, Rosebud and Lower Brule,
tensions between the Indian population and the non-Indian settlers on
former Great Sioux lands have been high with little easing by
successive generations. The Mni Wiconi Project is perhaps the most
significant opportunity in more than a century to bring the sharply
diverse cultures of the two societies together for a common good. Much
progress has been made due to the good faith and genuine efforts of
both the Indian and non-Indian sponsors. The project is an historic
basis for renewed hope and dignity among the Indian people. It is a
basis for substantive improvement in relationships.
Each year our testimony addresses the fact that the project
beneficiaries, particularly the three Indian Reservations, have the
lowest income levels in the Nation. The health risks to our people from
drinking unsafe water are compounded by reductions in health programs.
We respectfully submit that our project is unique and that no other
project in the Nation has greater human needs. Poverty in our service
areas is consistently deeper than elsewhere in the Nation. Health
effects of water borne diseases are consistently more prevalent than
elsewhere in the Nation, due in part to (1) lack of adequate water in
the home and (2) poor water quality where water is available. Higher
incidences of impetigo, gastroenteritis, shigellosis, scabies and
hepatitis-A are well documented on the Indian reservations of the Mni
Wiconi Project area. At the beginning of the third millennium one
cannot find a region in our Nation in which social and economic
conditions are as deplorable. These circumstances are summarized in
Table 1. Mni Wiconi builds the dignity of many, not only through
improvement of drinking water, but also through direct employment and
increased earnings during planning, construction, operation and
maintenance and from economic enterprises supplied with project water.
We urge the subcommittee to address the need for creating jobs and
improving the quality of life on the Pine Ridge and other Indian
reservations of the project area.
TABLE 1.--PROFILE OF SELECTED ECONOMIC CHARACTERISTICS: 2000
----------------------------------------------------------------------------------------------------------------
Income Percent
2000 Percent -------------------------------- Families Percent
Indian Reservation/State Population Change Median Below Unemployment
From 1990 Per Capita Household Poverty
----------------------------------------------------------------------------------------------------------------
Pine Ridge Indian 15,521 27.07 $6,143 $20,569 46.3 16.9
Reservation................
Rosebud Indian Reservation.. 10,469 7.97 $7,279 $19,046 45.9 20.1
Lower Brule Indian 1,353 20.48 $7,020 $21,146 45.3 28.1
Reservation................
Star of South Dakota........ 754,844 8.45 $17,562 $35,282 9.3 3.0
Nation...................... 281,421,906 13.15 $21,587 $41,994 9.2 3.7
----------------------------------------------------------------------------------------------------------------
Employment and earnings among the Indian people of the project area
are expected to positively impact the high costs of health-care borne
by the United States and the Tribes. Our data suggest clear
relationships between income levels and Federal costs for heart
disease, cancer and diabetes. During the life of the Mni Wiconi
Project, mortality rates among the Indian people in the project area
for the three diseases mentioned will cost the United States and the
Tribes more than $1 billion beyond the level incurred for these
diseases among comparable populations in the non-Indian community
within the project area. While this project alone will not raise income
levels to a point where the excessive rates of heart disease, cancer
and diabetes are significantly diminished, the employment and earnings
stemming from the project will, nevertheless, reduce mortality rates
and costs of these diseases. Please note that between 1990 and 2000 per
capita income on Pine Ridge increased from $3,591 to $6,143, and median
household income increased from $11,260 to $20,569, due in large part
to this project, albeit not sufficient to bring a larger percentage of
families out of poverty (Table 1).
Financial support for the Indian membership has already been
subjected to drastic cuts in funding programs through the Bureau of
Indian Affairs. This project is a source of strong hope that helps off-
set the loss of employment and income in other programs and provide for
an improvement in health and welfare. Tribal leaders have seen that
Welfare Reform legislation and other budget cuts Nation-wide have
created a crisis for tribal government because tribal members have
moved back to the reservations in order to survive. Economic conditions
have resulted in accelerated population growth on the reservations.
The Mni Wiconi Project Act declares that the United States will
work with us under the circumstances:
``. . . the United States has a trust responsibility to ensure that
adequate and safe water supplies are available to meet the economic,
environmental, water supply and public health needs of the Pine Ridge,
Rosebud and Lower Brule Indian Reservations . . .''.
Indian support for this project has not come easily because the
historical experience of broken commitments to the Indian people by the
Federal Government is difficult to overcome. The argument was that
there is no reason to trust and that the Sioux Tribes are being used to
build the non-Indian segments of the project and the Indian segments
would linger to completion. These arguments have been overcome by
better planning, an amended authorization and hard fought agreements
among the parties. The subcommittee is respectfully requested to take
the steps necessary the complete the critical elements of the project
proposed for fiscal year 2004.
The following sections describe the construction activity in each
of the rural water systems.
oglala sioux rural water supply system--distribution
OGLALA SIOUX WATER SUPPLY SYSTEM DISTRIBUTION REQUEST
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
West Boundary Supply.................................... $506,000
Manderson Loop.......................................... 1,454,000
Rockyford to Redshirt................................... 179,000
White River to HWY 73/44 Junction:
Pump Station, Service Lines and Reservoirs.......... 3,127,000
HWY 73/44 Junction to Kyle.............................. 4,923,000
Indefinite Quantities................................... 35,000
---------------
Total............................................. 10,224,000
------------------------------------------------------------------------
With the conclusion of projects under construction in fiscal year
2002, the Oglala Sioux Tribe completed all facilities that can be
supported from local groundwater. The Tribe, representing more than 40
percent of the project population will rely on the OSRWSS core to
convey Missouri River water to and throughout the Reservation. Much
pipeline has been constructed, primarily between Kyle, Wounded Knee and
Red Shirt and between Pine Ridge Village and the communities of Oglala
and Slim Buttes. Additional construction of the Manderson Loop is
proposed in fiscal year 2005.
Of particular importance to the Oglala Sioux Tribe is the
continuation of the main transmission system from the northeast corner
(Highway 73/44 junction) of the Reservation to Kyle in the central part
of the Reservation. The transmission line is needed to interconnect the
OSRWSS core system with the distribution system within the Reservation
in order to deliver Missouri River water to the populous portions of
the Reservation. This critical segment of the project can be continued
in fiscal year 2005 to coincide with the westward construction of the
OSRWSS core to the northeast corner of the Reservation (see section 2).
It will require funds in fiscal year 2006 and fiscal year 2007 to
complete. This component of the Oglala system has been deferred for
several years due to inadequate funding. The component is urgently
needed for the OSRWSS core system to be utilized on the Pine Ridge
Indian Reservation.
west river/lyman-jones rural water system--distribution
WR/LJ RURAL WATER SYSTEM DISTRIBUTION REQUEST
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Mellette East........................................... $533,000
Moenville............................................... 9,566,000
Quinn Town Distribution................................. 176,000
Vivian Town............................................. 441,000
Indefinite Quantities................................... 304,000
---------------
Total............................................. 11,020,000
------------------------------------------------------------------------
Continued drought conditions in the project area have created
serious health and economic hardships for WR/LJ members waiting to
receive Mni Wiconi water service. A survey of members attending the WR/
LJ annual meeting on October 8, 2003 in Midland revealed that, of those
members not receiving project water, 67 percent were hauling water for
domestic use and 45 percent were hauling water for livestock. Their
current source of water, highly mineralized wells and dried up dams,
present a serious health hazard and unaffordable increases in
production costs due to the time and cost of hauling water.
The requested appropriation is directed to serving members between
Ft. Pierre and Philip. The highest priority is completion of the
Moenville project. Houston Rose, prior to his death, pioneered initial
efforts to bring quality water to this WR/LJ service area closest to
the Mni Wiconi water treatment plant. The economy of the area he
represented is based on livestock operations that are dependent on
quality water supplies.
WR/LJ is now the water service provider in the towns of Quinn and
Vivian, however, the existing distribution piping is over 50 years old
and is a very high priority for replacement. Funding is also requested
for the construction of pumping station and reservoirs required to
deliver the full design capability of the pipelines under construction.
As a testimony to public recognition of the advantages of quality water
and the reliability of the system WR/LJ continues to add users within
those areas previously constructed. These additions are being financed
by member contributions as part of the statutory non-Federal matching
requirement.
The Mni Wiconi project, due to continued Congressional support, has
progressed to where the project beneficiaries can look forward to its
timely completion and receive the intended project benefits. We
sincerely appreciate your support.
ROSEBUD RURAL WATER SYSTEM (SICANGU MNI WICONI)
ROSEBUD SIOUX RURAL WATER SYSTEM REQUEST
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Hidden Timber........................................... $1,317,000
Rosebud Improvements.................................... 737,000
Rural Antelope.......................................... 866,000
Okreek.................................................. 2,030,000
Mission Northwest....................................... 447,000
Livestock Water......................................... 1,271,000
Service Connections..................................... 657,000
---------------
Total............................................. 7,325,000
------------------------------------------------------------------------
Fiscal year 2005 efforts build upon the successes of the past 2
years. The Rosebud Core pipeline will begin providing water from the
OSRWSS at Murdo to Rosebud and WR/LJ water users in Mellette County. As
a result, the limited supply of high quality ground water available
from the Rosebud wellfield can be used as a source of supply for
northeast Todd County.
The Rosebud Sioux Tribes efforts in fiscal year 2005 focus on
connecting additional homes to new and existing pipelines. The Antelope
to Okreek Pipeline, completed in late 2003, provides a supply of high
quality ground water to the rural Antelope, northwest Mission, Hidden
Timber and Okreek project areas. In this portion of northern Todd
County, the Oglala Aquifer is not present and ground water is of poor
quality and limited quantity where available. Private and community
wells have failed in the area and while the Antelope to Okreek Pipeline
solved the problem for the community of Okreek, many rural residents
are anxiously waiting for water.
The problems are exacerbated in the Hidden Timber area. Where
ground water occurs, nitrate concentrations are frequently in excess of
the Safe Drinking Water Act primary standard. The high nitrate
concentrations pose an acute threat to the unborn and young children.
The major features of the proposed fiscal year 2005 work plan focus
on distribution and service lines for this area. Proposed projects for
this area include Rural Antelope, Mission Northwest, Okreek and Hidden
Timber. It is envisioned that both private contractors and the tribal
construction program would be responsible for construction.
The other major project proposed for fiscal year 2005 address
improvements needed in the community of Rosebud. In fiscal year 2004,
the Tribe will be connecting the lower older part of Rosebud to the
rural water system. While this will improve the quality and reliability
of supply, improvements are needed to ensure water reaches the users.
In several areas, older cast iron pipe has corroded and needs to be
replaced. In other areas, older asbestos concrete pipe is still in use
and felt to be a health threat. The focus of the work in Rosebud in
fiscal year 2005 is to provide a reliable source of high quality water
to all service connections.
The Tribe will also expand its service line program. The focus of
this effort is new homes and homes that have been constructed since
transmission or distribution lines have been installed. It is also
proposed to start developing livestock watering facilities. The Tribe
has not constructed any of these facilities to date with Mni Wiconi
funding and the realty of prolonged drought is having an affect on
historic livestock watering sources of supply. A reliable source of
water for livestock is necessary to maintain one of the more viable
components of the reservation economy.
The total amount requested for the Sicangu Mni Wiconi in fiscal
year 2005 is $7,325,000.
LOWER BRULE RURAL WATER SYSTEM--DISTRIBUTION
The Lower Brule Rural Water System (LBRWS) has gained the support
of the other sponsors to complete its share of the project with funds
appropriated in fiscal year 2005 budget, based on an appropriation of
funds for the project in the range generally received. This support is
not only a benefit for LBRWS and its users but to the project as a
whole. By funding LBRWS in this manner, a savings of approximately $1.5
million will be experienced by the project.
With the funds received in fiscal year 2004, LBRWS will complete
the design, cultural resource evaluation and the securing of easements
for the remaining service areas and installing mainlines and service
lines required to provide water to all of the homes on the Lower Brule
Indian Reservation. The fiscal year 2004 funds will also allow LBRWS to
begin installing water lines to pasture taps. Since the area has
experienced 2 years of drought conditions, many of the dams are dry.
The provision of water will allow some pastures to be utilized that
would have otherwise been of no benefit to the ranchers.
The fiscal year 2005 funds will allow the completion of the
installation of pasture taps and a new 400,000 gallon elevated water
tank in Lower Brule. The existing tank is in a location where the
slides (soil movement) have occurred. As a result, the stability of the
tank's foundation is in question.
OPERATION, MAINTENANCE AND REPLACEMENT BUDGET
The sponsors have and will continue to work with Reclamation to
ensure that their budgets are adequate to properly operate, maintain
and replace (OMR) their respective portions of the overall system. The
sponsors will also continue to manage OMR expenses in a manner ensuring
that the limited funds can best be balanced between construction and
OMR. In fiscal year 2003, the approved budget for OMR was $8.228
million, which was adequate. Funding was not adequate in fiscal year
2004 at the $6.254 level and will not be adequate at the same leveling
the administration's proposed fiscal year 2005 budget of $6.254 million
for OMR.
The project has been making significant progress especially over
the last 2 years with the initiation of operation of the OSRWSS Water
Treatment Plant near Ft. Pierre and the installation of a significant
quantity of pipeline. The result is the need for sufficient funds to
properly operate and maintain the functioning system throughout the
project. As a result, the OMR budget must continue to be adequate to
keep pace with the portion of the system that is placed in operation.
In addition to ongoing operation and maintenance activities, water
conservation is an integral part of the OMR of the project. Water
conservation not only provides immediate savings from reduced water use
and production, it also extends the useful life and capacity of the
system. Proposed funding is not adequate to perform water conservation
functions.
______
Prepared Statement of the City of Watsonville, California and Pajaro
Valley Water Management Agency
On behalf of the City of Watsonville and the Pajaro Valley Water
Management Agency (PVWMA), we are submitting this testimony in support
of Federal funding for the Watsonville Area Water Recycling Project.
The project has been targeted to receive $2.0 million as part of the
fiscal year 2003 and fiscal year 2004 Energy and Water appropriations
bills through the Bureau of Reclamation's Title XVI program. This year,
we respectfully request your support for the inclusion of $6.3 million
in the Bureau of Reclamation's Title XVI program in the fiscal year
2005 Energy and Water Development Appropriations bill.
The City of Watsonville and the PVWMA continue to make great
progress on the project. We are working diligently with the Bureau of
Reclamation to develop solutions to the seawater intrusion problem
affecting the water supply of our agricultural and urban water users.
We need not convince you of the vital nature of this project that will
protect the Pajaro Valley's fresh water supply from continued
degradation.
To address the water resource needs of our area, PVWMA is
implementing the Revised Basin Management Plan Project (project).
Capital costs of the project are estimated at $165 million, of which
$80 million is eligible for Federal cost sharing under the Title XVI
program (in 2006 dollars). The Watsonville Water Area Recycling Project
components that have qualified for funding through the Title XVI
program include:
--Recycled Water Treatment Facility;
--Distribution System; and
--Salinity Control Pipeline.
The next several years will be critical for the project and we
anticipate that all construction will be completed by fiscal year 2007.
Certification of the Watsonville Water Area Recycling Project
Feasibility Study is pending a Record of Decision on the Basin
Management Plan Environmental Impact Statement, which is expected by
May 2004.
The following table summarizes projected expenditures for design
and construction of the Title XVI eligible project components.
[In millions of dollars]
------------------------------------------------------------------------
Projected
Expenditures
------------------------------------------------------------------------
Fiscal year 2004........................................ 9.8
Fiscal year 2005........................................ 25.3
Fiscal year 2006........................................ 31.3
Fiscal year 2007........................................ 13.4
------------------------------------------------------------------------
We continue to be concerned by the administration's lack of support
for Title XVI projects including the Watsonville Area Water Recycling
Project. The Bureau's fiscal year 2005 budget recently submitted to
Congress includes no funding for our project. In fact, the Bureau
failed to budget for 12 of the 18 eligible projects while requesting
over $1.5 million for itself to administer the program. We strongly
believe that the Title XVI program in general and the Watsonville Area
Water Recycling Project specifically offer effective solutions to the
water supply crisis in our State. Indeed, without the Title XVI
program, water recycling in our area might not be feasible and would
force increased reliance on an already oversubscribed Central Valley
Project. We question the wisdom of reducing the Bureau's participation
in Title XVI and ask that you work with your colleagues in support of
the program as well as funding for the Watsonville Area Water Recycling
Project.
We are excited to report that the project is moving ahead on
schedule. Approximately $18 million of project components have been
constructed through fiscal year 2003. The accelerated construction of
these project components allows PVWMA to deliver water early and
demonstrate continued progress. In fiscal year 2004, we initiated work
on the final design of the distribution system, the recycled water
facilities, blending facilities and water wells, and salinity control
pipeline. The design for each component will be completed in early
fiscal year 2005 and construction of the projects will commence
immediately thereafter.
Please feel free to contact PVWMA's Washington Representative or us
if you have any questions or require additional information.
______
Prepared Statement of the Lewis and Clark Rural Water System
BACKGROUND
The Lewis and Clark Rural Water System is requesting $35 million
through the Bureau of Reclamation in Federal funding for continuing
construction activities in 2005. These funds will be used for
construction, acquisition of easements and property, engineering, and
associated legal and professional costs. The project has completed
required planning and environmental reviews, and major construction
will begin this year. The $17 million secured in fiscal year 2004 will
enable Lewis and Clark to install the first segments of the raw water
pipeline, provide emergency water connections for communities in Iowa,
and various other interconnections throughout the water system. The
three member-states and the local project sponsors have also
contributed much to this project, with roughly $11 million in local
funds to be made available in fiscal year 2005.
The President's budget requests $17.5 million for Lewis and Clark,
which reflects a commitment he made to the project last summer. While
this request is a welcome starting point, $35 million is necessary to
fully-fund the project this year to ensure construction activities will
continue in 2005. Even though we are in the early stages of
construction, it is important to keep the project on schedule in order
to provide this much-needed water source to area communities as soon as
possible.
The Lewis and Clark Rural Water System Act became law in July 2000
(Public Law 106-246). When complete, the project will provide safe,
reliable drinking water to approximately 200,000 people in South
Dakota, Minnesota, and Iowa. Lewis and Clark represents a unique
regional approach by three States to address common problems with area
water resources in a more effective and cost-efficient way than each
State could do alone. Regional water problems include shallow wells and
aquifers prone to contamination, compliance with new Federal drinking
water standards, and increasing water demand due to population growth
and economic expansion.
The Lewis and Clark project will utilize an aquifer adjacent to the
Missouri River near Vermillion, South Dakota, and will distribute water
to member communities in an area of approximately 5,000 square miles,
roughly the size of Connecticut. When complete, the drinking water will
pass through a well system, a water treatment plant, and a non-looped
distribution system. The system also will include water storage tanks
that will provide approximately a 1-day supply. The project will
require an estimated 10 to 12 years to complete.
PLANS FOR CONSTRUCTION IN 2004 AND 2005
Lewis and Clark developed a schedule for construction and related
services to be performed during the next 2 years. The following work is
anticipated in fiscal year 2004 and fiscal year 2005, subject to the
availability of funding.
Projects Planned for Fiscal Year 2004
Raw Water Pipeline--Segment 1.--This project has been awarded to
Winter Brothers Underground for $1,850,000. Construction will begin in
May and will be completed by the end of September.
Raw Water Pipeline--Segments 2 and 3.--This project is currently in
the final design phase. Permit applications and easements are currently
being processed. It is anticipated this project would be awarded to a
contractor in the early summer and construction start in late summer/
early fall 2004.
Site J Production Pump Test Well.--Lewis & Clark currently plans to
drill another test production well south and west of Vermillion. The
well will be a +/-105 deep vertical well and will be sized to be an
actual production well for the project. The construction period will be
from August 15 through November 15.
Treated Water Pipeline--SD Segment 1.--The Treated Water Pipeline
Segment 1 will involve construction of a pipeline from west of Sioux
Falls to Tea, South Dakota. The project will include construction of
the main 48" treated water transmission pipeline for the Lewis & Clark
System. Lewis & Clark plans to bid and award this project in September
2004.
Treated Water Pipeline--IA Segment 1 (Iowa Emergency Connection).--
The first phase of the Iowa Emergency Connection will involve a
pipeline from the Sioux Center water treatment plant to Hull, Iowa. The
project will include construction of the main treated water
transmission pipeline for the Lewis & Clark System and service
connection lines for Sioux Center and Hull. Lewis & Clark plans to bid
and award this project in September 2004 or 2005, depending upon
funding levels.
Water Treatment Plant Pre-design.--This task includes a preliminary
design and evaluation of the treatment plant. The goal is to complete
the pre-design and provide drawings, draft specifications and technical
memoranda for a Value Engineering review in early 2005.
Projects Planned for Fiscal Year 2005
Fiscal year 2005 activities will include a continuation of the
projects listed above for 2004, plus the following additional system
components:
Treated Water Pipeline--SD Segment 2.--The second phase of the
treated water pipeline construction in South Dakota would include
construction of the main 48" pipeline from Tea south to Lennox. Part or
all of this segment may be included in the 2004 construction if delays
are experienced elsewhere in the project. Lewis & Clark would bid and
award this project in the summer of 2005.
Treated Water Pipeline--SD Segment 3.--The third phase of the
treated water pipeline construction in South Dakota would be a
continuation of the main 48" pipeline south from Lennox to Highway 18.
Lewis & Clark would bid and award this project in the summer of 2005.
(Under Consideration) Treated Water Pipeline--SD Segment 4 (portion
of Parker service line).--This phase would include a portion of the
service line to Parker, South Dakota. Initial construction of this line
would be constructed to the turnout for South Lincoln RWS. If pursued,
Lewis & Clark would bid and award this project in the summer of 2005.
(Under Consideration) Treated Water Pipeline--SD Segment 5 (South
Dakota Emergency Connection).--The South Dakota Emergency Connection
may include construction of a pipeline from the east side of Sioux
Falls to connect to Lincoln County Rural Water System. The project
would include construction of the main treated water transmission
pipeline for the Lewis & Clark System. This part of the emergency
connection will permit temporary transmission of water from Minnehaha
Community Water Corporation (MCWC) to the Lincoln County RWS.
Additional water could be provided to Tea, Lincoln County RWS and
Harrisburg. If pursued, Lewis & Clark would bid and award this project
in the summer of 2005.
(Under Consideration) Treated Water Pipeline--IA Segments 2 (Iowa
Emergency Connection).--The next phase of the Iowa Emergency Connection
may include building a short section of Lewis & Clark pipeline to
connect Sheldon, Iowa to a temporary source of water. If pursued, Lewis
& Clark plans to bid and award this project in the summer of 2005.
Treated Water Pipeline--MN Segment 1 (Minnesota Emergency
Connection).--The Minnesota Emergency Connection will involve
construction of a pipeline from Magnolia to east of Adrian, Minnesota.
The project will include construction of the main treated water
transmission pipeline for the Lewis & Clark System. The emergency
connection will pump water from Rock County RWS to Lincoln-Pipestone
RWS and other Minnesota water systems under future contracts. Lewis &
Clark plans to bid and award this project in the summer of 2005 or
2006, depending on funding levels.
Water Treatment Plant Design.--The Value Engineering (VE) review
will be performed in early 2005. The design team will proceed with
design of the water treatment plant incorporating the results and
recommendations from the VE review.
______
Prepared Statement of the Mid-Dakota Rural Water System
FISCAL YEAR 2005 FUNDING REQUEST
The Mid-Dakota Project is requesting an appropriations of $17.015
million provided through the Bureau of Reclamation's project
construction program for fiscal year 2005. As with our past submissions
to this subcommittee, Mid-Dakota's fiscal year 2005 request is based on
a detailed analysis of our ability to proceed with construction during
the fiscal year. In all previous years, Mid-Dakota has fully obligated
its appropriated funds, including Federal, State, and local, and could
have obligated significantly more were they available.
An appropriation of $17.015 million for fiscal year 2005 will
complete the Federal Government's funding obligation for the initial
construction of the authorized Project. It is with pleasure that Mid-
Dakota agrees with President Bush's $17.015 million request for Mid-
Dakota in fiscal year 2005.
TENTATIVE FISCAL YEAR 2005 CONSTRUCTION SCHEDULE \1\
---------------------------------------------------------------------------
\1\ Project features listed in table are subject to rescheduling
based upon funding provided and readiness to proceed and other factors.
Actual construction activities, therefore, may not coincide exactly
with schedule presented here.
---------------------------------------------------------------------------
The proposed construction would provide service to an estimated
1,500 more people than are currently receiving or scheduled to receive
Project drinking water.
MID-DAKOTA RURAL WATER SYSTEM STATEMENT OF CAPABILITIES FISCAL YEAR 2005 (OCTOBER 2004 THROUGH SEPTEMBER 2005)
----------------------------------------------------------------------------------------------------------------
Inspection--Percent Engin. and
Construction of Const. Legal Subtotals
----------------------------------------------------------------------------------------------------------------
Source and Intake (Percent) .............. 12 2 ..............
Expansion $80,000 $57,600 $9,600 $547,200
----------------------------------------------------------------------
Subtotals $480,000 $7,600 $9,600 $547,200
----------------------------------------------------------------------
Water Treatment (Percent) .............. 12 2 ..............
Expansion $710,000 $445,200 $74,200 $4,229,400
VFD IEEE comp. $250,000 $30,000 $5,000 $285,000
----------------------------------------------------------------------
Subtotals $3,960,000 $475,200 $79,200 $4,514,400
----------------------------------------------------------------------
Main Trans. Pipe (Percent) .............. 8 2 ..............
Expansion--BPS $2,175,000 $174,000 $43,500 $2,392,500
----------------------------------------------------------------------
Subtotals $2,175,000 $174,000 $43,500 $2,392,500
----------------------------------------------------------------------
Dist. Pipeline (Percent) .............. 6 6 ..............
Wolsey (4-3P (2)) $2,610,000 $156,600 $156,600 $2,923,200
Pearl Creek $1,815,000 $108,900 $108,900 $2,032,800
Staum Dam $1,450,000 $87,000 $87,000 $1,624,000
Redfield East $415,000 $24,900 $24,900 $464,800
Vaults and stations $280,000 $16,800 $16,800 $313,600
----------------------------------------------------------------------
Subtotals $6,570,000 $394,200 $394,200 $7,358,400
----------------------------------------------------------------------
Water Storage (Percent) .............. 12 6 ..............
Canning Tank $1,120,000 $134,400 $67,200 $1,321,600
----------------------------------------------------------------------
Subtotals $1,120,000 $134,400 $67,200 $1,321,600
----------------------------------------------------------------------
SCADA and Controls (Percent) .............. 8 8 ..............
Controls & SCADA $295,000 $23,600 $23,600 $342,200
----------------------------------------------------------------------
Subtotals $295,000 $23,600 $23,600 $342,200
----------------------------------------------------------------------
TOTAL $4,600,000 $1,259,000 $617,300 $16,476,300
Administration as a Percent of .............. 1.5 .............. $219,000
Construction
Bur. of Rec. as a Percent of .............. 3.0 .............. $438,000
Construction
Contingencies as a percent of .............. 10.0 .............. $1,460,000
Construction
----------------------------------------------------------------------
TOTAL CONSTRUCTION .............. ................... .............. $18,593,300
CAPABILITIES--FISCAL YEAR 2005
WETLAND COMPONENT REQUEST--FISCAL .............. ................... .............. $317,000
YEAR 2005
----------------------------------------------------------------------
TOTAL FISCAL YEAR 2005 .............. ................... .............. $18,910,300
CAPABILITIES--FISCAL YEAR 2005
----------------------------------------------------------------------------------------------------------------
Total capabilities are greater than the amount remaining in
authorized funds. If a funding shortfall is realized, Mid-Dakota will
examine its options for funding the shortfall when the amount is known.
IMPACTS OF FISCAL YEAR 2005 AWARD
The most obvious impact of any significant reduction from Mid-
Dakota's request will be the delay of construction of one or more
Project components. The $17.015 million will allow for the completion
of the Mid-Dakota Project as it is currently authorized. The requested
appropriation will provide the necessary funds to proceed with
construction of multiple contracts summarized earlier in this
testimony.
HISTORY OF PROJECT FUNDING
The Project was authorized by Congress and signed into law by
President George H.W. Bush in October 1992. The Federal authorization
for the project totaled $100 million (1989 dollars) in a combination of
Federal grant and loan funds (grant funds may not exceed 85 percent of
Federal contribution). The State authorization was for $8.4 million
(1989 dollars). A breakdown of Project cost ceilings are as follows:
PROJECT COST CEILINGS (FISCAL YEAR 2004)
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Federal Ceiling......................................... $140,279,000
State Ceiling........................................... 9,670,000
---------------
Subtotal Rural Water System....................... 149,949,000
Wetland Enhancement Component........................... 2,756,000
---------------
Total Project Cost Ceiling........................ 152,705,000
------------------------------------------------------------------------
The total authorized indexed cost of the project is approximately
$152.705 million (fiscal year 2005 figures were not available at the
time of writing this testimony). All Federal funding considered, the
Government has provided 89 percent of its commitment ($126.726 \2\
million of $143.035 million) to provide construction funding for the
Project. When considering the Federal and State combined awards, the
project is approximately 89 percent complete, in terms of financial
commitments.
---------------------------------------------------------------------------
\2\ Includes $15.0 million appropriated in fiscal year 2004, but
does not include Agency ``underfinancing'' or 2005 Indexing.
SUMMARIZATION OF FEDERAL FUNDING
[In millions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total
Mid- Pres. Conf. Bureau Additional Fed.
Fed. Fiscal year Dakota Budg. House Senate Enacted Award Funds Funds
Request Levels Levels Provided
--------------------------------------------------------------------------------------------------------------------------------------------------------
1994........................................................... 7.991 ......... ......... 2.000 2.000 1.500 .......... 1.500
1995........................................................... 22.367 ......... ......... 8.000 4.000 3.600 .......... 3.600
1996........................................................... 23.394 2.500 12.500 10.500 11.500 10.902 2.323 13.225
1997........................................................... 29.686 2.500 11.500 12.500 10.000 9.400 1.500 10.900
1998........................................................... 29.836 10.000 12.000 13.000 13.000 12.221 1.000 13.221
1999........................................................... 32.150 10.000 10.000 20.000 15.000 14.100 2.000 16.100
2000........................................................... 28.800 5.000 15.000 7.000 14.000 12.859 1.000 13.859
2001........................................................... 24.000 6.040 11.040 6.040 10.040 9.398 .......... 9.398
2002........................................................... 30.684 10.040 15.040 15.540 15.040 13.611 0.861 14.472
2003........................................................... 29.360 10.040 17.040 17.900 17.900 16.129 0.800 16.929
2004........................................................... 23.869 2.040 12.040 15.040 15.040 13.522 .......... 13.522
2005........................................................... 17.015 17.015 ......... ......... ......... ......... .......... .........
----------------------------------------------------------------------------------------
Totals \1\............................................... ......... 75.175 116.16 127.52 127.52 117.242 9.484 126.726
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Includes Congressional appropriations for the operation and maintenance of the ``Wetland Enhancement'' Component of the Project.
Additionally, the State of South Dakota has contributed $9.67
million in grants to the Mid-Dakota Project, in previous years. The
State of South Dakota completed its initial authorized financial
obligation to the Mid-Dakota Project in the 1998 Legislative Session.
construction in progress
Mid-Dakota began construction in September of 1994, with the
construction of its Water Intake and Pump Station. Since that eventful
day of first construction start, we have bid, awarded, and completed 23
project components and are into construction on eight other major
Project components. The following table provides a synopsis of each
major construction contract:
----------------------------------------------------------------------------------------------------------------
Contract Amount Percent
Contract with Change Work Complete to Dollars Contract Completion Date
Orders Date Comp.
----------------------------------------------------------------------------------------------------------------
1-1, Intake Station................... $3,944,961.74 $3,944,961.74 100 02/28/97
1-1A, Intake Rip-Rap.................. $87,178.75 $87,178.75 100 05/02/98
1-1B, Intake Road..................... $26,187.50 $26,187.50 100 10/01/99
2-1, Water Treat. Plant............... $10,242,564.00 $10,242,564.00 100 04/28/98
2-1A, WTP Controls.................... $14,628.98 $14,628.98 100 08/03/00
O&M Center Paving..................... $58,473.87 $58,473.87 100 06/13/00
3-1A, Raw Water Pipe.................. $1,719,251.30 $1,719,251.30 100 03/29/96
3-1B, Main Trans. Pipe................ $7,022,055.73 $7,022,055.73 100 12/21/97
3-1C, Main Trans. Pipe................ $4,793,104.90 $4,793,104.90 100 11/10/97
3-1D, CP System....................... $214,651.00 $214,651.00 100 11/01/00
3-2A, Main Trans. Pipe................ $3,155,454.93 $3,155,454.93 100 12/03/99
3-2B, Main Trans. Pipe................ $3,356,564.67 $3,356,564.67 100 12/09/99
3-3A, Main Trans. Pipe................ $2,383,513.37 $2,383,513.37 100 11/01/02
3-3B, Main Trans. Pipe................ $3,881,892.39 $3,871,671.00 99 11/13/03
3-3C, Main Trans. Pipe................ $2,630,672.25 $2,601,234.00 99 11/13/03
4-1A/B (1-5) Dist. Pipe............... $10,572,231.62 $10,572,231.62 100 10/20/97 \1\
11/15/97 \1\
11/15/98
05/30/99
4-1A/B (6) Dist. Pipe................. $9,027,572.49 $9,027,572.49 100 10/22/99 \1\
12/03/00
4-2 (1) Dist. Pipe.................... $4,707,394.81 $4,707,394.81 100 11/10/00
4-2 (2) Dist. Pipe.................... $3,000,176.49 $3,000,176.49 100 11/13/00
4-2 (4-5) Dist. Pipe.................. $5,134,974.43 $5,134,974.43 100 10/31/01
4-2A (4) Dist. Pipe................... $1,191,329.30 $1,191,329.30 100 10/31/01
07/01/02
4-2AP (2-3) Dist. Pipe................ $11,435,814.24 $11,114,781.91 97 11/17/02
12/31/03
4-2AV (2-3) Dist. Pipe................ $686,749.00 $686,749.00 100 11/01/03
5-1, Highmore Tank.................... $1,433,000.00 $1,433,000.00 100 10/20/97
5-1A (1) Onida Tank................... $397,688.00 $397,688.00 100 06/30/99
5-1A(2--4) Oko. Agar Getty. Tanks..... $1,526,453.00 $1,526,453.00 100 09/18/00
5-2 (1) Mac's Corner Tank............. $561,100.69 $561,100.69 100 10/16/00
5-2 (2-3) Rezac Lake & Collins Slough $911,720.00 $911,720.00 100 09/01/01
Tanks.
5-2A (1-3) Ames & Wess. Springs Tanks. $868,490.00 $868,490.00 100 09/01/02
09/01/03
5-2A (2) Cottonwood Lake Tank......... $695,862.98 $695,862.98 100 09/01/02
5-3 Wolsey Tank....................... $2,021,414.00 $1,281,594.00 63 11/01/04
6-1 SCADA System...................... $888,260.50 $837,680.72 94 12/01/03
-------------------------------------------------------------------------
TOTAL........................... $98,591,386.93 $97,440,295.18
----------------------------------------------------------------------------------------------------------------
\1\ Intermediate completion date.
CLOSING
Mid-Dakota is very aware of the tough funding decisions that face
the Energy and Water Appropriations Subcommittee and we do not envy the
difficult job that lies ahead. We strongly urge, the subcommittee to
look closely at the Mid-Dakota Project and recognize the dire need that
exists. Consider the exceptionally high level of local and State
support. And finally consider the fact that fully funding the fiscal
year 2005 appropriation request as submitted by the President and by
Mid-Dakota will fully fund the initial authorized components of the
Mid-Dakota Project.
Again, we thank the subcommittee for its strong support, both past
and present.
______
Prepared Statement of the New Mexico Interstate Stream Commission
SUMMARY
This statement is submitted in support of appropriations for the
Colorado River Basin salinity control program of the Department of the
Interior's Bureau of Reclamation. Congress designated the Bureau of
Reclamation to be the lead agency for salinity control in the Colorado
River Basin by the Colorado River Basin Salinity Control Act of 1974.
Public Law 104-20 reconfirmed the Bureau of Reclamation's role. A total
of $17.5 million is requested for fiscal year 2005 to implement the
authorized salinity control program of the Bureau of Reclamation. The
President's appropriation request is inadequate because studies have
shown that the implementation of the salinity control program has
fallen behind the pace needed to control salinity. An appropriation of
$17.5 million for Reclamation's salinity control program is necessary
to protect water quality standards for salinity and to prevent
unnecessary levels of economic damage from increased salinity levels in
water delivered to the Lower Basin States and Mexico.
STATEMENT
The water quality standards for salinity of the Colorado River must
be protected while the Basin States continue to develop their compact
apportioned waters of the river. Studies have shown that the
implementation of the salinity control program has fallen below the
threshold necessary to prevent future exceedence of the numeric
criteria of the water quality standards for salinity in the Lower Basin
of the Colorado River. The salinity standards for the Colorado River
have been adopted by the seven Basin States and approved by EPA. While
currently the standards have not been exceeded, salinity control
projects must be brought on-line in a timely and cost-effective manner
to prevent future effects that would cause the numeric criteria to be
exceeded.
The Colorado River Basin Salinity Control Act was authorized by
Congress and signed into law in 1974. The seven Colorado River Basin
States, in response to the Clean Water Act of 1972, had formed the
Colorado River Basin Salinity Control Forum, a body comprised of
gubernatorial representatives from the seven States. The Forum was
created to provide for interstate cooperation in response to the Clean
Water Act, and to provide the States with information necessary to
comply with Sections 303(a) and (b) of the Act. The Forum has become
the primary means for the Basin States to coordinate with Federal
agencies and Congress to support the implementation of the salinity
control program for the Colorado River Basin.
Bureau of Reclamation studies show that damages from the Colorado
River to United States water users are about $300,000,000 per year.
Damages are estimated at $75,000,000 per year for every additional
increase of 30 milligrams per liter in salinity of the Colorado River.
Control of salinity is necessary for the Colorado River Basin States,
including New Mexico, to continue to develop their compact-apportioned
waters of the Colorado River.
It is essential that appropriations for the funding of the salinity
control program be timely in order to comply with the water quality
standards for salinity to prevent unnecessary economic damages in the
United States, and to protect the quality of the water that the United
States is obligated to deliver to Mexico. An appropriation of only the
amount specified in the President's budget request is inadequate to
protect the quality of water in the Colorado River and prevent
unnecessary salinity damages in the States of the Lower Colorado River
Basin. Studies have shown that the implementation of the salinity
control program has fallen behind the pace needed to control salinity.
Although the United States has always met the water quality standard
for salinity of water delivered to Mexico under Minute No. 242 of the
International Boundary and Water Commission, the United States through
the U.S. Section of IBWC is currently addressing a request by Mexico
for better quality water.
Congress amended the Colorado River Basin Salinity Control Act in
July 1995 (Public Law 104-20). The salinity control program authorized
by Congress by the amendment has proven to be very cost-effective, and
the Basin States are standing ready with up-front cost sharing.
Proposals from public and private sector entities in response to the
Bureau of Reclamation's advertisement have far exceeded available
funding. Basin States cost sharing funds are available for the $17.5
million appropriation request for fiscal year 2005. The Basin States
cost sharing adds 43 cents for each Federal dollar appropriated.
Public Law 106-459 gave the Bureau of Reclamation additional
spending authority for the salinity control program. With the
additional authority in place and significant cost sharing by the Basin
States, it is essential that the salinity control program be funded at
the level requested by the Forum and Basin States to protect the water
quality of the Colorado River.
Maintenance and operation of the Bureau of Reclamation's salinity
control projects and investigations to identify new cost-effective
salinity control projects are necessary for the success of the salinity
control program. Investigation of new opportunities for salinity
control are critical as the Basin States continue to develop and use
their compact-apportioned waters of the Colorado River. The water
quality standards for salinity and the United States water quality
requirements pursuant to treaty obligations with Mexico are dependent
on timely implementation of salinity control projects, adequate funding
to maintain and operate existing projects, and investigations to
determine new cost-effective projects.
I urge the Congress to appropriate $17.5 million to the Bureau of
Reclamation for the Colorado River Basin salinity control program,
adequate funding for operation and maintenance of existing projects and
adequate funding for general investigations to identify new salinity
control opportunities. Also, I fully support testimony by the Forum's
Executive Director, Jack Barnett, in request of this appropriation, and
the recommendation of an appropriation of the same amount by the
federally chartered Colorado River Basin Salinity Control Advisory
Council.
______
Letter From the State Engineer's Office, Wyoming
Cheyenne, Wyoming, May 18, 2004.
The Honorable Pete V. Domenici,
Chairman,
The Honorable Harry Reid,
Ranking Member,
Energy and Water Development Subcommittee, Committee on Appropriations,
United States Senate, 127 Dirksen Senate Office Building,
Washington, DC 20510.
Dear Chairman Domenici and Senator Reid: This letter is sent in
support of fiscal year 2003 funding for the Bureau of Reclamation's
Colorado River Basin Salinity Control Project--Title II Program. Thank
you in advance for inclusion of this letter in the formal hearing
record concerning fiscal year 2005 appropriations.
The Colorado River provides municipal and industrial water for 27
million people and irrigation water to nearly 4 million acres of land
in the United States. The River is also the water source for some 2.3
million people and 500,000 acres in Mexico. Limitations on users'
abilities to make the greatest use of that water supply due to the
River's high concentration of total dissolved solids (hereafter
referred to as the salinity of the water) are a major concern in both
the United States and Mexico. Salinity in the water source especially
affects agricultural, municipal, and industrial water users. While
economic detriments and damages in Mexico are unquantified, the Bureau
of Reclamation presently estimates salinity-related damages in the
United States to amount to $330 million per year. The River's high salt
content is in almost equal part due to naturally occurring geologic
features that include subsurface salt formations and discharging saline
springs; and the resultant concentrating effects of our users man's
storage, use and reuse of the waters of the River system. Over-
application of irrigation water by agriculture is a large contributor
of salt to the Colorado River as irrigation water moves below the crop
root zone, seeps through saline soils and then returns to the river
system.
The 1944 Mexico Treaty obligates the United States to provide 1.5
million acre-feet of water to Mexico, but does not address quality.
Mexico filed a formal protest in the 1960's when the salinity levels of
water being delivered pursuant to the Treaty increased sharply. Several
minutes, including Minute 242 to the Treaty, were negotiated to address
the water quality concerns voiced by Mexico. Minute 242 requires the
average annual salinity of the Colorado River water delivered to Mexico
upstream of Mexico's principal diversion dam (Morelos Dam) can be no
more than 115 parts per million (PPM), plus or minus 30 PPM higher than
the average salinity of the water arriving at Imperial Dam, the
lowermost point of major water diversion in the United States.
The Environmental Protection Agency's interpretation of the 1972
amendments to the Clean Water Act required the seven Basin States to
adopt water quality standards for salinity levels in the Colorado
River. In light of the EPA's regulation to require water quality
standards for salinity in the Basin, the Governors of Arizona,
California, Colorado, Nevada, New Mexico, Utah and Wyoming created the
Colorado River Basin Salinity Control Forum as an interstate
coordination mechanism in 1973. To address these international and
regionally important salinity problems, the Congress enacted the
Colorado River Basin Salinity Control Act of 1974. Title I addressed
the United States' obligations to Mexico to control the River's
salinity to ensure the United States' water deliveries to Mexico are
within the specified salinity concentration range. Title II of the Act
authorized control measures upstream of Imperial Dam and directed the
Secretary of the Interior to construct several salinity control
projects, most of which are located in Colorado, Utah, and Wyoming.
Title II of the Act was again amended in 1995 and 2000 to direct the
Bureau of Reclamation to conduct a basin-wide salinity control program.
This program awards grants to non-Federal entities, on a competitive-
bid basis, which initiate and carry out salinity control projects. The
basin-wide program has demonstrated significantly improved cost-
effectiveness, as computed on $1 per ton of salt basis, as compared to
the prior Reclamation-initiated projects. The Forum was heavily
involved in the development of the 1974 Act and its subsequent
amendments, and continues to actively oversee the Federal agencies'
salinity control program efforts.
During the past 31 years, the seven State Colorado River Basin
Salinity Control Forum has actively assisted the Federal agencies,
including the Bureau of Reclamation, in implementing this unique and
important program. At its October 2003 meeting, the Forum recommended
that the Bureau of Reclamation seek to have appropriated and should
expend for Colorado River Basin salinity control the sum of $17,500,000
in fiscal year 2005. We strongly believe these efforts constitute one
of the most successful Federal/State cooperative non-point source
pollution control programs in the United States.
The State of Wyoming greatly appreciates the subcommittee's support
of the Colorado River Salinity Control Program in past years. We
suggest this important basin-wide water quality improvement program
merits continued funding and support by your subcommittee.
With best regards,
John W. Shields,
Interstate Streams Engineer, for
Patrick T. Tyrrell,
Wyoming State Engineer, Wyoming Member, Colorado River Basin
Salinity Control Forum.
______
Prepared Statement of the State of Wyoming
I write to request your support for an appropriation in fiscal year
2005 of $5,234,000 to the Bureau of Reclamation within the budget line
item entitled ``Endangered Species Recovery Implementation Program''
for the Upper Colorado Region. The President's recommended budget for
fiscal year 2005 includes this line-item amount. The funding
designation we seek is as follows: $4,008,000 for the Upper Colorado
River Endangered Fish Recovery Program; $691,000 for the San Juan River
Basin Recovery Implementation Program and $535,000 for Fish and
Wildlife Management and Development.
These highly successful, cooperative programs are ongoing
partnerships among the States of Colorado, New Mexico, Utah and
Wyoming, Indian tribes, Federal agencies and water, power and
environmental interests. The programs' objectives are to recover
endangered fish species while water development proceeds in compliance
with the Endangered Species Act. The programs reflect a prudent
approach to providing endangered species conservation and recovery
within the framework of the Act, while concurrently resolving critical
conflicts between endangered species recovery and the development and
use of Compact-apportioned water resources in the Upper Colorado River
Basin region of the Intermountain West.
The requested fiscal year 2005 appropriation will allow
construction of fish passage structures at the Grand Valley Project and
Price-Stubb diversion dams on the Colorado River near Grand Junction,
Colorado. Fish passage will provide access to an additional 50 miles of
historic habitat upstream of these dams. Floodplain restoration
activities will continue at high-priority sites and is especially
important for the survival of the razorback sucker species. Screening
of existing diversion canals, needed to prevent endangered fish from
being drawn out of the river and into canal and power plant intake
structures, will proceed at the Redlands Water and Power Company and
Bureau of Reclamation-constructed Grand Valley Project facilities. The
requested funding for the San Juan River Recovery Program will be used
for program management, propagation facilities, stocking efforts, non-
native management efforts and construction of a fish screen in the
Hogback Irrigation Project canal. Additional hatchery facilities,
restoring floodplain habitat and fish passage, regulating and supplying
instream habitat flows, installing diversion canal screens and
controlling non-native fish populations are key components of the
capital construction efforts ongoing in both programs.
Substantial non-Federal cost sharing funds are provided by the four
States, power users, and water users in support of these recovery
programs. Public Law 106-392, as amended by Public Law 107-375,
authorizes the Federal Government to provide up to $46 million of cost
sharing for these two ongoing recovery programs' remaining capital
construction projects. The four participating states are contributing
$17 million and $17 million is being contributed from revenues derived
from the sale of Colorado River Storage Project (CRSP) hydroelectric
power. These facts demonstrate the strong commitment and effective
partnerships that are present in both of these successful programs.
The past support and assistance of your subcommittee has greatly
facilitated the success of these multi-State, multi-agency programs. On
behalf of the citizens of Wyoming, I thank you for that support and
request the subcommittee's assistance for fiscal year 2005 funding to
ensure the Bureau of Reclamation's continuing financial participation
in these vitally important programs.
______
Prepared Statement of the Central Arizona Water Conservation District
(CAWCD)
Mr. Chairman, the Central Arizona Water Conservation District
(CAWCD) is pleased to offer the following testimony regarding the
fiscal year 2005 Energy and Water Development appropriations request by
the U.S. Bureau of Reclamation, Lower Colorado Region.
The Central Arizona Project or ``CAP'' was authorized by the 90th
Congress of the United States under the Colorado River Basin Project
Act of 1968. The CAP is a multi-purpose water resource development
project designed to deliver the remainder of Arizona's entitlement of
Colorado River water into the central and southern portions of the
State for municipal and industrial, agricultural, and Indian uses.
CAWCD was created in 1971 as the local governmental entity responsible
for contracting with the United States to repay the reimbursable
construction costs of the CAP and, subsequently to operate and maintain
the completed project. Its service area is comprised of Maricopa, Pima,
and Pinal counties. CAWCD is a tax-levying public improvement district,
a political subdivision, and a municipal corporation, and represents
roughly 80 percent of the water users and taxpayers of the State of
Arizona. CAWCD is governed by a 15-member Board of Directors elected
from the three counties it serves. CAWCD's Board members are public
officers who serve without pay.
Project repayment is provided for through a Master Repayment
Contract between CAWCD and the United States. Project repayment began
in 1994. To date, CAWCD has repaid $740 million of CAP construction
costs to the United States.
CENTRAL ARIZONA PROJECT
In its fiscal year 2005 budget request, Reclamation seeks
$34,087,000 for the CAP. Of this amount, $21,358,000 is requested for
the continuation of construction of water distribution systems for
various Indian water users. CAWCD supports full funding for this
important program.
Reclamation is also requesting $1,849,000 to continue tendon
repairs to the Centennial, Jackrabbit, and Hassayampa siphons.
Completing the tendon repairs to these siphons is critical to the long
term reliability of the CAP water delivery system; therefore, CAWCD
strongly supports this appropriation request.
An amount of $6,692,000 is earmarked to fund activities associated
with implementation of a 1994 biological opinion of the U.S. Fish and
Wildlife Service (FWS) pertaining to delivery of CAP water to the Gila
River Basin and for native fish activities on the Santa Cruz River.
$1,951,000 and $28,000, respectively, are requested to complete
environmental activities at Modified Roosevelt Dam and to complete a
reservoir limnology follow-up study at Lake Pleasant. CAWCD supports
these budget requests.
Reclamation is requesting $959,000 to begin land acquisition and
right-of-way activities, and to continue coordination and design
elements for the water supply reliability features of the Tucson
Reliability Division, also known as Tucson Terminal Storage. A
stipulation that settles a 1995 lawsuit between CAWCD and Reclamation
over CAP costs requires Reclamation to consult with CAWCD before
proceeding with the development of these features because of their
potential impact on CAWCD's repayment obligation for CAP. Reclamation
has not consulted with CAWCD, the city of Tucson, or other Tucson area
customers about these activities. Until such consultation occurs, CAWCD
opposes any funding for land acquisition and right of way activities
for the Tucson Reliability Division.
COLORADO RIVER BASIN SALINITY CONTROL PROJECT--TITLE I
In its fiscal year 2005 budget request, Reclamation is requesting
$10,869,000 under the Colorado River Basin Salinity Control Project--
Title I. This program supports maintenance of the Yuma Desalting Plant
(YDP), maintaining the U.S. Bypass Drain and the Mexico Bypass Drain,
and ensuring that Mexican Treaty salinity requirements are met.
Currently, the YDP is not operational. Instead, Reclamation is allowing
all Wellton-Mohawk drainage water (over 100,000 acre-feet per year) to
bypass the YDP and flow to the Santa Clara Slough in Mexico. These
flows are not accounted for as deliveries to Mexico under the 1944
Mexican Treaty and represent a significant depletion of the Colorado
River water currently in storage. Continuing this practice will
eventually reduce the amount of water available to the Central Arizona
Project, the lowest priority water user in the Colorado River basin,
and increase the risk of future shortages. The Colorado River system is
now in its fifth consecutive year of below normal runoff, and water
levels in Lake Powell and Lake Mead are at their lowest levels in over
30 years. In fact, water year 2002 was the lowest runoff year in
recorded history on the Colorado River. Reclamation's operation of the
YDP would conserve an additional 100,000 acre-feet per year of Colorado
River water for use by the lower basin States. This amount is roughly
equal to the City of Phoenix's annual subcontract entitlement to CAP
water.
The House of Representatives Report accompanying the fiscal year
1995 Energy and Water Development Appropriations bill directed
Reclamation to maintain the YDP so as to be capable of operating at
one-third capacity with a 1-year notice of funding. Conference Report
108-357 that accompanied the fiscal year 2004 Energy and Water
Development Appropriations Act directed the Bureau of Reclamation to
expedite its modifications to the YDP to enable state of the art
operation and to accelerate permitting and environmental compliance
activities. A report to the House and Senate Committees on
Appropriations was due within 180 days. Reclamation indicates that this
report is currently being prepared.
Reclamation's fiscal year 2005 budget justification documents again
provide no indication that it has any intention of actually operating
the YDP. The budget request for fiscal year 2005 is $381,000 less than
Reclamation's fiscal year 2004 budget request. Of this amount, $781,000
is requested for Title I research technology to ``. . . promote less
expensive operation of the YDP and exploration of new technology to
keep the YDP viable as a tool to address future water resource needs.''
According to Reclamation's budget justification documents, research
advancements have already realized a cumulative savings of $10,000,000
in full plant operating expenses. This is an interesting statement in
light of the fact that the plant is not being operated. It is also
interesting to note that while Reclamation estimates $24 million per
year would be needed to operate the plant, it is requesting about $10
million in order not to operate it. The $781,000 should be redirected
toward activities necessary to make the YDP operational.
Reclamation is requesting $1,780,000 for continuing data gathering
and analysis regarding the salinity of flows arriving at Imperial Dam
and flows going into Mexico as well as work associated with minimizing
Wellton-Mohawk drainage flows. Work also includes operation of sludge
disposal equipment and activities required to purify feed water to the
plant. CAWCD understands that most of this work is necessary, but not
directly related to YDP operations. However, since the YDP is not
operational, it is not clear what is being done for sludge disposal and
feed water purification. If this is pretreatment for water treated at
the research facility that is already included in the $781,000
previously mentioned, then that portion of the $1,780,000 requested
should be redirected to YDP rehabilitation.
Reclamation is requesting $5,771,000 for continuing efforts to
ensure the Yuma Desalting Plant can operate to meet Mexican Treaty
requirements. This is $147,000 more than Reclamation's fiscal year 2004
budget request for this same line item. Work includes long-term
maintenance of Yuma Desalting Plant infrastructure and facilities,
maintenance of sections of the Bypass Drain, Protective and Regulatory
Pumping Unit and mitigation features. Reclamation's narrative does not
provide enough information to determine how much of this total amount
is needed for features other than YDP; however, past spending reports,
prepared by Reclamation, indicate about 50 percent or $2.9 million
might be available for necessary maintenance and rehabilitation to
restore operational capability at YDP.
Reclamation is requesting $483,000 to continue a long-term program
to bank water and/or pursue short-term agricultural water right leases
to offset the need to operate the plant. This is $2,759,000 less than
Reclamation's fiscal year 2004 budget request for the same line item.
There is no possibility for a program to bank water in 2005. Any plans
for water right leases/land fallowing will require several million
dollars. Reclamation also notes these funds would complete the
permitting and environmental compliance process for YDP operations.
CAWCD supports this request only to the extent needed to complete the
actions, documentation and permits necessary to operate YDP.
Reclamation has included a line item in its appropriations request
for $2,054,000 for replacement of high pressure reverse osmosis pumps
to correct corrosion problems and to continue to improve plant
readiness and correct design deficiencies. CAWCD supports Reclamation's
efforts to repair any design deficiencies. We encourage Reclamation to
ensure that they have a comprehensive plan in place.
Using the information provided in Reclamation's appropriation
request, it appears that of the $10,869,000 requested about $6,735,000
could be used for rehabilitation and modernization of the YDP with a
goal of one-third operational capability by the end of 2006. That
presumes Reclamation will spend $2 to $3 million of 2004 appropriations
on such activities and that the budget will remain relatively level in
2006.
CAWCD requests that language be included in the fiscal year 2005
Energy and Water Appropriations bill directing Reclamation to take the
necessary steps to bring the Yuma Desalting Plant into operation at no
less than one-third capacity by the end of fiscal year 2006. CAWCD
believes Reclamation's budget is sufficient to accomplish this goal.
COLORADO FRONT WORK AND LEVEE SYSTEM
Reclamation is requesting $3,647,000 for the Colorado River Front
Work and Levee System. This project regulates, stabilizes, and
maintains the river channel and includes the existing offstream storage
feature, Senator Wash Dam. This budget request also includes continuing
work to plan and design additional offstream storage on the All
American Canal. CAWCD supports the budget request for these activities.
ENDANGERED SPECIES CONSERVATION/RECOVERY PROJECT
Reclamation is requesting $1,298,000 for its ongoing Endangered
Species Conservation/Recovery Project. This program provides for the
development and implementation of projects for the stewardship of
endangered, threatened, proposed, and candidate species that are
resident or migratory to habitats within the lower Colorado Region.
These activities are complementary to the Lower Colorado River Multi-
Species Conservation Program (MSCP). CAWCD supports this request.
LOWER COLORADO RIVER OPERATIONS PROGRAM
In its fiscal year 2005 budget request, Reclamation seeks
$15,322,000 for its Lower Colorado River Operations Program. This
program provides for Reclamation to continue its activities as the
``water master'' on the lower Colorado River and provides Reclamation's
funding for the lower Colorado River Multi-Species Conservation Program
(MSCP). $2,018,000 is for administration of the Colorado River and
$3,177,000 is for water contract administration and decree accounting.
Under Fish and Wildlife Management and Development, $9,027,000 is
requested, of which $6,234,000 is earmarked for the MSCP. It is
anticipated that a similar amount will be contributed by non-Federal
parties. In addition, $1,184,000 is requested for Southwestern Willow
Flycatcher and Yuma Clapper Rail Protection, $1,199,000 is for
Razorback and Bonytail Chub protection, $410,000 for riparian
restoration and research, $150,000 for NEPA compliance activities.
The MSCP is a cost-shared program among Federal and non-Federal
interests to develop a long-term plan to conserve endangered species
and their habitat along the lower Colorado River from Lake Mead to
Mexico. CAWCD is one of the cost-sharing partners. Development of this
program will provide habitat for hundreds of threatened and endangered
species and, at the same time, allow current water and power operations
to continue.
CAWCD supports Reclamation's budget request for the Lower Colorado
River Operations Program. The increased funding level is necessary to
support the MSCP effort as well as environmental measures necessary to
fully implement the interim surplus criteria for the lower Colorado
River. These are critical programs upon which lower Colorado River
water and power users depend.
CAWCD welcomes this opportunity to share its views with the
committee, and would be pleased to respond to any questions or
observations occasioned by this written testimony.
______
Prepared Statement of the Colorado River Water Conservation District
Chairman Domenici and Senator Reid, I am writing to request your
support for an appropriation in fiscal year 2005 of $5,234,000 to the
Bureau of Reclamation within the budget line item entitled ``Endangered
Species Recovery Implementation Program'' for the Upper Colorado River
Region. The President's recommended budget for fiscal year 2005
includes this line-item amount. Of these funds, I respectfully request
the designation of $4,008,000 for the Upper Colorado River Endangered
Fish Recovery Program; $691,000 for the San Juan River Basin Recovery
Implementation Program and $535,000 for Fish and Wildlife Management
and Development, consistent with the President's budget request. The
requested fiscal year 2005 appropriation will allow construction of
fish passage, floodplain restoration activities, screening of existing
diversion canals, propagation facilities, endangered fish stocking, and
non-native fish management.
These funds are authorized by Public Law 106-392. Substantial non-
Federal cost sharing funds are provided by the States of Colorado,
Wyoming, Utah, and New Mexico, power users, and water users in support
of these recovery programs. These programs are carried out consistent
with State law and interstate water compacts.
The past support and assistance of your subcommittee has greatly
facilitated the success of these multi-State, multi-agency programs. I
request the subcommittee's assistance relative to fiscal year 2005
funding to ensure the Bureau of Reclamation's continuing financial
participation in these vitally important programs.
______
Prepared Statement of the Fort Peck Assiniboine and Sioux Tribes and
Dry Prairie Rural Water
FISCAL YEAR 2005 BUDGET REQUEST
The Fort Peck Assiniboine and Sioux Tribes and Dry Prairie Rural
Water respectfully request fiscal year 2005 appropriations for the
Bureau of Reclamation from the Subcommittee on Energy and Water
Development. Funds will be used to construct critical elements of the
Fort Peck Reservation Rural Water System, Montana (Public Law 106-382,
October 27, 2000). The amount requested is $25,000,000, based on
capability to spend the requested funds as set out below:
FISCAL YEAR 2005 WORK PLAN--FORT PECK RESERVATION RURAL WATER SYSTEM
(PUBLIC LAW 106-382)
------------------------------------------------------------------------
Funding Costs
------------------------------------------------------------------------
Appropriations Requested............... $25,000,000
Estimated Rescission and Underfinancing (2,545,000)
@ 10.18%..............................
-----------------
Available Federal Funds.......... 22,455,000
=================
Fort Peck Tribes:
Federal Funds...................... 15,911,000
Work Plan:
Design and Reclamation ............... $1,136,000
Oversight.....................
Missouri River Water Treat ............... 14,775,000
Plant.........................
---------------
............... 15,911,000
===============
Dry Prairie:
Federal Funds...................... 6,544,000
Non-Federal Funds.................. 2,067,000
-----------------
Total............................ 8,611,000
=================
Work Plan:
Design and Reclamation ............... 609,000
Oversight.....................
Complete Culbertson to Medicine ............... 331,000
Lake Pipeline.................
Dane Valley and E. Med. Lake ............... 7,671,000
Pipelines.....................
---------------
............... 8,611,000
------------------------------------------------------------------------
The sponsor Tribes and Dry Prairie greatly appreciate the previous
appropriations from the subcommittee that have permitted building the
Missouri River intake, the critical water source, and the first phase
of the Culbertson to Medicine Lake Pipeline Project.
The request is less than the average annual appropriations needed
to complete the project in fiscal year 2012, as provided by the
authorizing legislation:
------------------------------------------------------------------------
------------------------------------------------------------------------
Total Federal Funds Authorized (October 2003 Dollars)... $207,333,000
Federal Funds Expended Through Fiscal Year 2004......... $1,804,000
Percent Complete........................................ 0.87
Amount Remaining........................................ $205,529,000
Average Required for Fiscal Year 2012 Finish (Public Law $25,691,000
106-382)...............................................
------------------------------------------------------------------------
PROPOSED ACTIVITIES
This project, which includes all of the Fort Peck Indian
Reservation in Montana and the Dry Prairie portion of the project
outside the Reservation, was authorized by Public Law 106-382 in
October 27, 2000. The request for fiscal year 2005 will continue the
construction of the Missouri River water treatment plant, which will
require fiscal year 2006 funds in the estimated amount of $5 million
for completion. The request will also complete the Culbertson to
Medicine Lake Project, which was initiated in fiscal year 2003, and
advance the construction of the Dane Valley/Bainville/East Medicine
Lake Projects.
The project also has the capability beyond the amount requested,
based on current status of design, to build the first portion of the
pipeline leaving the water treatment plant at a cost of $10 million.
The pipeline section will be east of the water treatment plant and will
serve the community of Poplar, headquarters community for the
Assiniboine and Sioux Tribes. Construction is scheduled to start in
fiscal year 2006. This will also provide a source of water for a
section of the Fort Peck Indian Reservation contaminated by oil
drilling operations and the subject of EPA orders to the responsible
non-Tribal oil company. The oil company will provide the distribution
system necessary to mitigate the problems and the Assiniboine and Sioux
Rural Water System will provide the interconnecting pipeline without
duplicating any facilities identified in the Final Engineering Report.
This is an exigent circumstance that will be corrected by the project
in fiscal year 2006. No funds are requested for fiscal year 2005 for
this project even though design will be complete.
The Dry Prairie rural water system will finish the facilities
necessary to bring water supplies from an existing treatment plant on
the Missouri River at Culbertson to Medicine Lake where the existing
water treatment is inoperable. The system to be completed in fiscal
year 2005 will also provide the capability to connect Bainville, Dane
Valley and East Medicine Lake residents. The latter project will rely
on fiscal year 2005 and fiscal year 2006 funds to mitigate costs of
hauling water so prevalent there. The budget request is consistent with
the Master Plan as approved by the Bureau of Reclamation.
PROJECT STATUS AND COMPLETION
The Final Engineering Report (FER), water conservation plan and
Finding of No Significant Impact were completed in fiscal year 2002.
Congressional review of the project ended in August 2003, and
construction began immediately. The Missouri River intake and the
Culbertson to Medicine Lake pipeline projects are under construction
and are scheduled for completion in October 2004.
Design of the water treatment plant is now well advanced. The
design of the lagoons at the water treatment plant and the site
landscaping will be completed in third-quarter fiscal year 2004, and
construction of these preliminary facilities will begin in late fiscal
year 2004. The main facility will begin construction in fiscal year
2005 at a cost of $20 million.
Design of the Poplar to Big Muddy pipeline is well advanced and can
be completed to utilize first quarter fiscal year 2005 funds, but the
appropriation requirements to undertake this pipeline construction in
combination with the water treatment plant are considered too great to
include in the funding request. Therefore, construction of this
pipeline will depend on the availability of funds not currently
identified in fiscal year 2006 or fiscal year 2007. The discussion of
this pipeline is intended to demonstrate the capability of the project
to use funds prior to fiscal year 2007 if funding were available.
Similarly, the design of the branch pipelines that will serve rural
residents between Culbertson and Medicine Lake is well ahead of
funding. There is more capability to use funds than will be available
in either fiscal year 2004 or fiscal year 2005.
The project master plan is provided for review on the following
page.
LOCAL PROJECT SUPPORT
The Fort Peck Tribes have supported the project since 1992 when
they conceived it and sought means of improving the quality of life in
the region. The planning was a logical step after successful completion
of an historic water rights compact with the State of Montana. This
compact was the national ``ice breaker'' that increased the level of
confidence by other Tribes in Indian water right settlement
initiatives. The Tribes did not seek financial compensation for the
settlement of their water rights but expected development of meaningful
water projects as now authorized.
The 1999 Montana Legislature approved a funding mechanism from its
Treasure State Endowment Program to finance the non-Federal share of
project planning and construction. Demonstrating support of Montana for
the project, there were only three votes against the statutory funding
mechanism in both the full House and Senate. The 2001 and 2003 Montana
Legislatures have provided all authorizations and appropriations
necessary for the non-Federal cost share.
Dry Prairie support is demonstrated by a financial commitment of
all 14 communities within the service area to participate in the
project. Rural support is strong, with about 70 percent of area farms
and ranches intending to participate as evidenced by their intent fees
of $100 per household.
NEED FOR WATER QUALITY IMPROVEMENT
The Fort Peck Indian Reservation was previously designated as an
``Enterprise Community'', underscoring the level of poverty and need
for economic development in the region. The success of economic
development within the Reservation will be significantly enhanced by
the availability of higher quality, safe and more ample municipal,
rural and industrial water supplies that this regional project will
bring to the Reservation, made more necessary by an extended drought in
the region. Outside the Fort Peck Indian Reservation, the Dry Prairie
area has income levels that are higher than within the Reservation but
lower than the State average.
The feature of this project that makes it more cost effective than
similar projects is its proximity to the Missouri River. The southern
boundary of the Fort Peck Indian Reservation is formed by the Missouri
River for a distance of more than 60 miles. Many of the towns in this
regional project are located 2 to 3 miles from the river, including
Nashua, Frazer, Oswego, Wolf Point, Poplar, Brockton, Culbertson, and
Bainville. As shown on the enclosed project map, a transmission system
outside the Fort Peck Indian Reservation will deliver water 30 to 40
miles north of the Missouri River. Therefore, the distances from the
Missouri River to all points in the main transmission system are
shorter than in other projects of this nature in the Northern Great
Plains.
ADMINISTRATION'S BUDGET FOR FISCAL YEAR 2005
The administration's budget for fiscal year 2005 was severe
disappointment. It was the only authorized project in the rural water
category with construction underway that did not receive funding. Other
projects authorized at the same time in both the rural water and water
and related resources categories, of similar nature to this project,
were generously funded. Of greatest concern now is the need for
Reclamation to justify the zero funding amount. In all previous
meetings with the Commissioner and his representatives and with OMB, no
concerns with the project were raised other than the concerns raised
with all projects that the Federal Budget is too constrained, non-
Indians should bear a greater cost share and other priorities, such as
homeland security, are more demanding of Federal funds. OMB
specifically stated in our favor that the project had provided more
support and justification of its benefits and costs than most Corps of
Engineers and the Bureau of Reclamation projects prior to
authorization. Under the circumstances, there is considerable concern
on our part that previously undisclosed issues will be generated in
support of the absence of a budget request.
The Tribes and Dry Prairie worked extremely well and closely with
the Bureau of Reclamation prior to and following the authorization of
this project in fiscal year 2000. The Bureau of Reclamation reviewed
and commented on the Final Engineering Report, and all comments were
either incorporated into the report or agreement was reached on final
presentation. The Commissioner, Regional and Area Offices of the Bureau
of Reclamation were consistently in full agreement with the need,
scope, total costs, and the ability to pay analysis that supported the
Federal and non-Federal cost shares. Bureau of Reclamation reviewed in
writing all of these items thoroughly and formally and there were no
areas of disagreement or controversy in the final formulation of the
project. Bureau of Reclamation testimony during the authorization phase
fully supported the project within the Fort Peck Indian Reservation and
opposed any Federal participation in the costs of the project outside
the Fort Peck Indian Reservation, as a matter of policy, but Congress
addressed that issue in Public Law 106-382.
The Bureau of Reclamation collaborated with the Tribes and Dry
Prairie to conduct and complete value engineering investigations of the
Final Engineering Report (planning), the Culbertson to Medicine Lake
pipeline (design), the Poplar to Big Muddy River pipeline (design), the
Missouri River intake (design) and (during the week of March 31, 2003)
on the regional water treatment plant (design). Each of these
considerable efforts has been directed at ways to save construction and
future operation, maintenance and replacement costs as planning and
design proceeded. Agreement with Reclamation has been reached in all
value engineering sessions on steps to take to save Federal and non-
Federal costs in the project.
Cooperative agreements have been developed and executed from the
beginning phases to date between the Bureau of Reclamation and the
Tribes and between Bureau of Reclamation and Dry Prairie. Those
cooperative agreements carefully set out goals, standards and
responsibilities of the parties for planning, design and construction.
All plans and specifications are subject to levels of review by the
Bureau of Reclamation pursuant to the cooperative agreements. The
sponsors do not have the power to undertake activities that are not
subject to oversight and approval by the Bureau of Reclamation. Each
year the Tribes and Dry Prairie are required by the cooperative
agreements to develop a work plan setting out the planning, design and
construction activities and the allocation of finding to be utilized on
each project feature.
Clearly, the Fort Peck Reservation Rural Water System is well
supported by the Bureau of Reclamation planners. Congress authorized
the project with a plan formulated in full cooperation and
collaboration with the Bureau of Reclamation, and major project
features are under construction.
______
Prepared Statement of the Colorado River Energy Distributors
Association
The Colorado River Energy Distributors Association (CREDA)
appreciates the opportunity to submit its views on funding for specific
programs of the Bureau of Reclamation and the Western Area Power
Administration in the fiscal year 2005 Energy and Water Development
appropriations bill. We look forward to working with you and the
subcommittee on these issues of importance to electric consumers in the
Colorado River Basin States. The first issue is a request for Federal
funds to pay for costs of increased security at Federal multi-purpose
dams. The Bureau of Reclamation has requested $43 million for dams
under its jurisdiction for fiscal year 2005. CREDA is attempting to
determine whether this represents the total amount that will be spent
by the Bureau for increased security in fiscal year 2005 or not. The
second issue is a request for $10,000,000 of additional funds for the
Western Area Power Administration of the Department of Energy relating
to the Animas-La Plata project.
CREDA is a non-profit, regional organization representing consumer-
owned municipal and rural electric cooperatives, political
subdivisions, irrigation and electrical districts and tribal utility
authorities that purchase hydropower resources from the Colorado River
Storage Project (CRSP). CRSP is a multi-purpose Federal project that
provides flood control; water storage for irrigation, municipal and
industrial purposes; recreation and environmental mitigation, in
addition to the generation of electricity. CREDA was established in
1978, and serves as the ``voice'' of CRSP contractor members in dealing
with resource availability and affordability issues. CREDA represents
its members in dealing with the Bureau--as the owner and operator of
the CRSP--and the Western Area Power Administration--as the marketing
agency of the CRSP.
CREDA members serve nearly 3 million electric consumers in the six
western States of Arizona, Colorado, Nevada, New Mexico, Utah and
Wyoming. CREDA's member utilities purchase more than 85 percent of the
power produced by the CRSP. In addition, several Indian tribes have
joined CREDA as affiliate members prior to receiving allocations of
CRSP power on October 1, 2004.
With regard to the President's proposed fiscal year 2005 budget
request, CREDA has two primary concerns:
NON-REIMBURSABILITY OF POST-9/11 SECURITY COST INCREASES
Federal multipurpose projects across the country provide millions
of citizens with a multitude of benefits, including flood control,
municipal, rural, and industrial water supply, navigation, recreation,
and, of course, hydropower. Providing adequate security for these
multi-purpose, federally owned facilities is important to all U.S.
citizens. In the aftermath of the attacks on September 11, 2001,
Federal agencies involved in the Federal power program (the U.S. Bureau
of Reclamation, the U.S. Army Corps of Engineers, and the Federal Power
Marketing Administrations) have determined that significant increases
in security are needed, and will continue for years to come.
Adequately protecting and securing national assets, such as the
Federal multi-purpose dams, comes with a price tag. In 1941 and 1942,
Congress treated increased security costs before and after Pearl Harbor
as non-reimbursable (e.g., as costs to be borne by the Federal
Government and financed through appropriations, rather than reimbursed
by hydropower customers) because of the obvious national security
interest at stake and the benefits these projects offer to all
Americans. Thus far, Congress has agreed with this historical
precedent, as evidenced by Senate Appropriations report language for
fiscal year 2003 and fiscal year 2004, which stated that funds made
available to respond to the September 11, 2001, terrorist attacks shall
be non-reimbursable and indicates these costs ``are recurring'' (S.
Rept. 107-220 and S. Rept. 108-105). House report language for fiscal
year 2003 also supported this view (H. Rept. 107-681).
The Bureau of Reclamation received $28.4 million in the fiscal year
2003 Energy and Water Appropriations bill and an additional $25 million
in the 2003 Supplemental Appropriations bill to cover increased costs
to protect Reclamation dams and other facilities post September 11. The
Bureau also received $28.5 million for increased security costs in the
fiscal year 2004 Energy and Water bill that was signed into law in
December 2003. The Bureau of Reclamation recognized the above
historical precedent and the sound policy behind it and, in fiscal year
2003 and 2004, administratively determined that additional security
costs should be non-reimbursable (Bureau of Reclamation Commissioner
Keys, April 2002). The Corps of Engineers did not, treating additional
security investments at Corps facilities as reimbursable.
Due to budget constraints and pressures to control costs from the
Office of Management and Budget (OMB), the President's fiscal year 2005
budget directs the Bureau and the Corps to recover some of the costs of
increased security measures from entities that benefit from the multi-
purpose projects. Given our past experience with the Bureau and the
Corps, we believe that power customers will be unfairly singled out to
pay the reimbursable costs.
The reasons that security costs at Federal dams should continue to
be non-reimbursable are: (1) these facilities are Federal and multi-
purpose in nature, and the benefits accrue to a vast number of citizens
in many States; (2) protection of these Federal facilities is clearly
in the national interest and should remain a Federal responsibility;
and (3) by taking this funding stream out of the appropriations
process, congressional oversight of Reclamation's use of the funds
would be greatly diminished, thereby reducing accountability for the
type and expense of the security measures imposed.
CREDA urges the committee to include the following statutory
language in the fiscal year 2005 Water and Energy Development
Appropriations bill, to clarify that the additional costs of securing
facilities of the Bureau of Reclamation, the Corps of Engineers and the
Federal power marketing administrations are a Federal responsibility
and should be non-reimbursable:
``For fiscal year 2005 and each fiscal year thereafter, the
increased costs of ensuring security of Bureau of Reclamation dams,
federal power marketing administration facilities and Corps of
Engineers multipurpose facilities in the aftermath of the events of
September 11, 2001, shall be non-reimbursable and non-returnable.''
ANIMAS-LA PLATA PROJECT
The Colorado Ute Settlement Act Amendments of 2000 (Title III,
Section 301(b)(10), Public Law 106-554, December 21, 2000) authorized
development of the Animas-La Plata Project to satisfy water right
claims of the Southern Ute and Ute Mountain Ute Tribes in southwest
Colorado (known collectively as the ``Colorado Ute Indian Tribes'').
The project requires construction of a reservoir, pumping plant and
appurtenant facilities to provide water supply and delivery of
municipal and industrial water and other benefits to the Tribes.
In order to provide power from the CRSP to the Durango Pumping
Plant, transmission facilities will need to be constructed, operated
and maintained by the Western Area Power Administration. These
transmission facilities do not provide any benefit to CRSP power
customers; they are required solely to deliver water to project
beneficiaries.
The Western Area Power Administration will be responsible for
construction, operation and maintenance of these transmission
facilities, and requires additional appropriations in the amount of
$10,000,000 in fiscal year 2005 to meet the construction timetable
established by the U.S. Bureau of Reclamation, the project manager.
Since the transmission lines will power the pumping plant required for
delivery of water to Native American and non-Native American municipal
and industrial users, the costs related to the transmission facilities
and services should not be borne by the CRSP power customers and should
be considered non-reimbursable and nonreturnable. To do otherwise could
turn 102 years of Reclamation law on its head. Failure to address this
issue in the fiscal year 2005 appropriations cycle could jeopardize the
current construction schedule for the Animas-La Plata project and
subject CRSP power customers and the consumers they serve to an unfair
financial burden.
The Western Area Power Administration, the Bureau of Reclamation,
the Colorado River Energy Distributors Association, the water users and
the Colorado Ute Indian Tribes all support the inclusion of the
following language in the fiscal year 2005 Energy and Water Development
Appropriations bill:
``For carrying out the functions authorized by title III, section
302(a)(1)(E) of the Act of August 4, 1977 (42 U.S.C. 7152), and other
related activities including conservation and renewable resources
programs as authorized, including official reception and representation
expenses in an amount not to exceed $1,500, $183,100,000 to remain
available until expended, of which $170,756,000 shall be derived from
the Department of the Interior Reclamation Fund: Provided, That all
authorities and future contributions described in Section 402,
subparagraph (b)(3)(B) of the Reclamation Projects Authorization and
Adjustment Act of 1992 previously assigned to the Secretary of Energy,
Western Area Power Administration, shall be transferred to the
Secretary of the Interior, Bureau of Reclamation: Provided further,
That of the amount herein appropriated, $10,000,000 shall be available
until expended on a nonreimbursable basis to the Western Area Power
Administration to design, construct, operate and maintain transmission
facilities and services for the Animas-La Plata Project as authorized
by sections 301(b)(10) of Public Law 106-554.''
______
Prepared Statement of the Mni Wiconi Project
FISCAL YEAR 2005 CONSTRUCTION BUDGET REQUEST
The Mni Wiconi Project beneficiaries (as listed below) respectfully
request appropriations and can demonstrate capability for construction
in fiscal year 2005 in the amount of $39,317,000 as follows:
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Oglala Sioux Rural Water Supply System:
Core Facilities (Pipelines and Pumping Stations).... $8,128,000
Distribution System on Pine Ridge................... 10,224,000
West River/Lyman-Jones Rural Water System............... 11,020,000
Rosebud Sioux Rural Water System........................ 7,325,000
Lower Brule Sioux Rural Water System.................... 2,620,000
---------------
Total Mni Wiconi Project.......................... 39,317,000
------------------------------------------------------------------------
The project sponsors were provided by the 107th Congress (Public
Law 107-367) with all the authority necessary to finish this project at
the level of development originally intended on a schedule through
fiscal year 2008. Completion of the project is now clearly achievable
as shown in the table below:
------------------------------------------------------------------------
------------------------------------------------------------------------
Total Federal Required (October 2003 Dollars)........... $409,523,000
Estimated Federal Spent Through Fiscal Year 2004........ $278,110,000
Percent Spent........................................... 67.9
Amount Remaining........................................ $131,413,000
Years to Completion..................................... 4
Average Required for Fiscal Year 2008 Finish............ $32,853,000
------------------------------------------------------------------------
The administration's budget for this project in fiscal year 2005
($18.2 million for construction) is a disappointment for a second year
in a row. The amount requested by the administration falls far short of
the average amount needed to complete the project in fiscal year 2008.
The needs and merits of this project are considerable as described in
section 3.
The project's operation, maintenance and replacement request from
the sponsors is in addition to the construction request and is
presented in section 8.
OSRWSS CORE PIPELINE TO REACH PINE RIDGE INDIAN RESERVATION IN FISCAL
YEAR 2005
OGLALA SIOUX WATER SUPPLY SYSTEM CORE REQUEST
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
South Core:
Stamford to Kadoka:
Reservoir to Kadoka Pipeline.................... $1,036,000
Pump Station, 2 Reservoirs...................... 2,111,000
Kadoka to White River Pipeline...................... 2,587,000
North Core:
WTP toward Hayes Pipeline........................... 2,394,000
---------------
Total............................................. 8,128,000
------------------------------------------------------------------------
The Pine Ridge Indian Reservation and parts of West River/Lyman-
Jones remain without points of interconnection to the OSRWSS core. The
requested funding level for the OSRWSS core of $8.128 million will
complete the project from Stamford to the northeast corner of the Pine
Ridge Indian Reservation where, in combination with the western part of
West River/Lyman-Jones, the remaining 50 percent of the design
population resides. Funds will also be used by the Oglala Sioux Tribe
to build the North Core westerly toward Hayes in the West River Lyman
Jones service area with the intent to complete the OSRWSS North Core
and all other core facilities in fiscal year 2007. Two additional years
of funding will be required to complete the OSRWSS North Core system to
serve the Reservation.
The 2000 census confirms that the Oglala Sioux population on Pine
Ridge is growing at a rate of 27 percent per decade or 1\1/2\ times
greater than projected from the 1990 census. Delivery of Missouri River
water to this area is urgently needed.
All proposed OSRWSS construction activity will build pipelines that
will provide Missouri River water immediately to beneficiaries. In many
cases, construction of interconnecting pipelines by other sponsors is
ongoing, and fiscal year 2005 funds are required to complete projects
that will connect with the OSRWSS core and begin others.
Funding for OSRWSS core and distribution facilities is necessary to
bring economic development to the Pine Ridge Indian Reservation,
designated as one of five national rural empowerment zones by the
previous administration. The designation serves to underscore the level
of need. Economic development is largely dependent on the timely
completion of a water system, which depends on appropriations for this
project.
Finally, the subcommittee is respectfully requested to take notice
of the fact that fiscal year 2005 will significantly advance
construction of facilities that continues our progress toward the end
of the project. The subcommittee's past support has brought the project
to the point that the end can be seen. Key to the conclusion of the
project in fiscal year 2008 is the completion of the OSRWSS core to the
Pine Ridge Indian Reservation. Toward this end, funds are included in
the fiscal year 2005 budget to build the connecting pipelines between
the northeast corner of the Pine Ridge Indian Reservation and the
central portion of the Reservation near Kyle. Rosebud is similarly
engaged in the construction of major connecting pipelines that will
deliver water southerly to the central portions of the Rosebud Indian
Reservation and to service areas for West River/Lyman-Jones.
UNIQUE NEEDS OF THIS PROJECT
This project covers much of the area of western South Dakota that
was formerly the Great Sioux Reservation established by the Treaty of
1868. Since the separation of the Reservation in 1889 into smaller more
isolated reservations, including Pine Ridge, Rosebud and Lower Brule,
tensions between the Indian population and the non-Indian settlers on
former Great Sioux lands have been high with little easing by
successive generations. The Mni Wiconi Project is perhaps the most
significant opportunity in more than a century to bring the sharply
diverse cultures of the two societies together for a common good. Much
progress has been made due to the good faith and genuine efforts of
both the Indian and non-Indian sponsors. The project is an historic
basis for renewed hope and dignity among the Indian people. It is a
basis for substantive improvement in relationships.
Each year our testimony addresses the fact that the project
beneficiaries, particularly the three Indian Reservations, have the
lowest income levels in the Nation. The health risks to our people from
drinking unsafe water are compounded by reductions in health programs.
We respectfully submit that our project is unique and that no other
project in the Nation has greater human needs. Poverty in our service
areas is consistently deeper than elsewhere in the Nation. Health
effects of water-borne diseases are consistently more prevalent than
elsewhere in the Nation, due in part to (1) lack of adequate water in
the home and (2) poor water quality where water is available. Higher
incidences of impetigo, gastroenteritis, shigellosis, scabies and
hepatitis-A are well documented on the Indian reservations of the Mni
Wiconi Project area. At the beginning of the third millennium one
cannot find a region in our Nation in which social and economic
conditions are as deplorable. These circumstances are summarized in
Table 1. Mni Wiconi builds the dignity of many, not only through
improvement of drinking water, but also through direct employment and
increased earnings during planning, construction, operation and
maintenance and from economic enterprises supplied with project water.
We urge the subcommittee to address the need for creating jobs and
improving the quality of life on the Pine Ridge and other Indian
reservations of the project area.
Employment and earnings among the Indian people of the project area
are expected to positively impact the high costs of health care borne
by the United States and the Tribes. Our data suggest clear
relationships between income levels and Federal costs for heart
disease, cancer and diabetes. During the life of the Mni Wiconi
Project, mortality rates among the Indian people in the project area
for the three diseases mentioned will cost the United States and the
Tribes more than $1 billion beyond the level incurred for these
diseases among comparable populations in the non-Indian community
within the project area. While this project alone will not raise income
levels to a point where the excessive rates of heart disease, cancer
and diabetes are significantly diminished, the employment and earnings
stemming from the project will, nevertheless, reduce mortality rates
and costs of these diseases. Please note that between 1990 and 2000 per
capita income on Pine Ridge increased from $3,591 to $6,143, and median
household income increased from $11,260 to $20,569, due in large part
to this project, albeit not sufficient to bring a larger percentage of
families out of poverty (Table 1).
TABLE 1.--PROFILE OF SELECTED ECONOMIC CHARACTERISTICS: 2000
----------------------------------------------------------------------------------------------------------------
Income
Change ---------------------- Families
Indian Reservation/State 2000 from 1990 Per Median Below Unemployment
Population (Percent) Capita Household Poverty (Percent)
(Dollars) (Dollars) (Percent)
----------------------------------------------------------------------------------------------------------------
Pine Ridge Indian Reservation......... 15,521 27.07 6,143 20,569 46.3 16.9
Rosebud Indian Reservation............ 10,469 7.97 7,279 19,046 45.9 20.1
Lower Brule Indian Reservation........ 1,353 20.48 7,020 21,146 45.3 28.1
State of South Dakota................. 754,844 8.45 17,562 35,282 9.3 3.0
Nation................................ 281,421,906 13.15 21,587 41,994 9.2 3.7
----------------------------------------------------------------------------------------------------------------
Financial support for the Indian membership has already been
subjected to drastic cuts in funding programs through the Bureau of
Indian Affairs. This project is a source of strong hope that helps off-
set the loss of employment and income in other programs and provide for
an improvement in health and welfare. Tribal leaders have seen that
Welfare Reform legislation and other budget cuts Nation-wide have
created a crisis for tribal government because tribal members have
moved back to the reservations in order to survive. Economic conditions
have resulted in accelerated population growth on the reservations.
The Mni Wiconi Project Act declares that the United States will
work with us under the circumstances:
``. . . the United States has a trust responsibility to ensure that
adequate and safe water supplies are available to meet the economic,
environmental, water supply and public health needs of the Pine Ridge,
Rosebud and Lower Brule Indian Reservations . . .''.
Indian support for this project has not come easily because the
historical experience of broken commitments to the Indian people by the
Federal Government is difficult to overcome. The argument was that
there is no reason to trust and that the Sioux Tribes are being used to
build the non-Indian segments of the project and the Indian segments
would linger to completion. These arguments have been overcome by
better planning, an amended authorization and hard fought agreements
among the parties. The subcommittee is respectfully requested to take
the steps necessary the complete the critical elements of the project
proposed for fiscal year 2004.
The following sections describe the construction activity in each
of the rural water systems.
OGLALA SIOUX RURAL WATER SUPPLY SYSTEM--DISTRIBUTION
OGLALA SIOUX WATER SUPPLY SYSTEM DISTRIBUTION REQUEST
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
West Boundary Supply.................................... $506,000
Manderson Loop.......................................... 1,454,000
Rockyford to Redshirt................................... 179,000
White River to HWY 73/44 Junction:
Pump Station, Service Lines and Reservoirs.......... 3,127,000
HWY 73/44 Junction to Kyle.............................. 4,923,000
Indefinite quantities................................... 35,000
---------------
TOTAL............................................. 10,224,000
------------------------------------------------------------------------
With the conclusion of projects under construction in fiscal year
2002, the Oglala Sioux Tribe completed all facilities that can be
supported from local groundwater. The Tribe, representing more than 40
percent of the project population will rely on the OSRWSS core to
convey Missouri River water to and throughout the Reservation. Much
pipeline has been constructed, primarily between Kyle, Wounded Knee and
Red Shirt and between Pine Ridge Village and the communities of Oglala
and Slim Buttes. Additional construction of the Manderson Loop is
proposed in fiscal year 2005.
Of particular importance to the Oglala Sioux Tribe is the
continuation of the main transmission system from the northeast corner
(Highway 73/44 junction) of the Reservation to Kyle in the central part
of the Reservation. The transmission line is needed to interconnect the
OSRWSS core system with the distribution system within the Reservation
in order to deliver Missouri River water to the populous portions of
the Reservation. This critical segment of the project can be continued
in fiscal year 2005 to coincide with the westward construction of the
OSRWSS core to the northeast corner of the Reservation (see section 2).
It will require funds in fiscal year 2006 and fiscal year 2007 to
complete. This component of the Oglala system has been deferred for
several years due to inadequate funding. The component is urgently
needed for the OSRWSS core system to be utilized on the Pine Ridge
Indian Reservation.
WEST RIVER/LYMAN-JONES RURAL WATER SYSTEM--DISTRIBUTION
WR/LJ RURAL WATER SYSTEM DISTRIBUTION REQUEST
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Mellette East........................................... $533,000
Moenville............................................... 9,566,000
Quinn Town Distribution................................. 176,000
Vivian Town............................................. 441,000
Indefinite Quantities................................... 304,000
---------------
Total............................................. 11,020,000
------------------------------------------------------------------------
Continued drought conditions in the project area have created
serious health and economic hardships for WR/LJ members waiting to
receive Mni Wiconi water service. A survey of members attending the WR/
LJ annual meeting on October 8, 2003 in Midland revealed that, of those
members not receiving project water, 67 percent were hauling water for
domestic use and 45 percent were hauling water for livestock. Their
current source of water, highly mineralized wells and dried up dams,
present a serious health hazard and unaffordable increases in
production costs due to the time and cost of hauling water.
The requested appropriation is directed to serving members between
Ft. Pierre and Philip. The highest priority is completion of the
Moenville project. Houston Rose, prior to his death, pioneered initial
efforts to bring quality water to this WR/LJ service area closest to
the Mni Wiconi water treatment plant. The economy of the area he
represented is based on livestock operations that are dependent on
quality water supplies.
WR/LJ is now the water service provider in the towns of Quinn and
Vivian, however, the existing distribution piping is over 50 years old
and is a very high priority for replacement. Funding is also requested
for the construction of pumping station and reservoirs required to
deliver the full design capability of the pipelines under construction.
As a testimony to public recognition of the advantages of quality water
and the reliability of the system WR/LJ continues to add users within
those areas previously constructed. These additions are being financed
by member contributions as part of the statutory non-Federal matching
requirement.
The Mni Wiconi project, due to continued congressional support, has
progressed to where the project beneficiaries can look forward to its
timely completion and receive the intended project benefits. We
sincerely appreciate your support.
ROSEBUD RURAL WATER SYSTEM (SICANGU MNI WICONI)
ROSEBUD SIOUX RURAL WATER SYSTEM REQUEST
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Hidden Timber........................................... $1,317,000
Rosebud Improvements.................................... 737,000
Rural Antelope.......................................... 866,000
Okreek.................................................. 2,030,000
Mission Northwest....................................... 447,000
Livestock Water......................................... 1,271,000
Service Connections..................................... 657,000
---------------
Total............................................. 7,325,000
------------------------------------------------------------------------
Fiscal year 2005 efforts build upon the successes of the past 2
years. The Rosebud Core pipeline will begin providing water from the
OSRWSS at Murdo to Rosebud and WR/LJ water users in Mellette County. As
a result, the limited supply of high quality ground water available
from the Rosebud wellfield can be used as a source of supply for
northeast Todd County.
The Rosebud Sioux Tribes efforts in fiscal year 2005 focus on
connecting additional homes to new and existing pipelines. The Antelope
to Okreek Pipeline, completed in late 2003, provides a supply of high
quality ground water to the rural Antelope, northwest Mission, Hidden
Timber and Okreek project areas. In this portion of northern Todd
County, the Ogallala Aquifer is not present and ground water is of poor
quality and limited quantity where available. Private and community
wells have failed in the area and while the Antelope to Okreek Pipeline
solved the problem for the community of Okreek, many rural residents
are anxiously waiting for water.
The problems are exacerbated in the Hidden Timber area. Where
ground water occurs, nitrate concentrations are frequently in excess of
the Safe Drinking Water Act primary standard. The high nitrate
concentrations pose an acute threat to the unborn and young children.
The major features of the proposed fiscal year 2005 work plan focus
on distribution and service lines for this area. Proposed projects for
this area include Rural Antelope, Mission Northwest, Okreek and Hidden
Timber. It is envisioned that both private contractors and the tribal
construction program would be responsible for construction.
The other major project proposed for fiscal year 2005 address
improvements needed in the community of Rosebud. In fiscal year 2004,
the Tribe will be connecting the lower older part of Rosebud to the
rural water system. While this will improve the quality and reliability
of supply, improvements are needed to ensure water reaches the users.
In several areas, older cast iron pipe has corroded and needs to be
replaced. In other areas, older asbestos concrete pipe is still in use
and felt to be a health threat. The focus of the work in Rosebud in
fiscal year 2005 is to provide a reliable source of high quality water
to all service connections.
The Tribe will also expand its service line program. The focus of
this effort is new homes and homes that have been constructed since
transmission or distribution lines have been installed. It is also
proposed to start developing livestock watering facilities. The Tribe
has not constructed any of these facilities to date with Mni Wiconi
funding and the realty of prolonged drought is having an affect on
historic livestock watering sources of supply. A reliable source of
water for livestock is necessary to maintain one of the more viable
components of the reservation economy.
The total amount requested for the Sicangu Mni Wiconi in fiscal
year 2005 is $7,325,000.
LOWER BRULE RURAL WATER SYSTEM--DISTRIBUTION
The Lower Brule Rural Water System (LBRWS) has gained the support
of the other sponsors to complete its share of the project with funds
appropriated in fiscal year 2005 budget, based on an appropriation of
funds for the project in the range generally received. This support is
not only a benefit for LBRWS and its users but to the project as a
whole. By funding LBRWS in this manner, a savings of approximately $1.5
million will be experienced by the project.
With the funds received in fiscal year 2004, LBRWS will complete
the design, cultural resource evaluation and the securing of easements
for the remaining service areas and installing mainlines and service
lines required to provide water to all of the homes on the Lower Brule
Indian Reservation. The fiscal year 2004 funds will also allow LBRWS to
begin installing water lines to pasture taps. Since the area has
experienced 2 years of drought conditions, many of the dams are dry.
The provision of water will allow some pastures to be utilized that
would have otherwise been of no benefit to the ranchers.
The fiscal year 2005 funds will allow the completion of the
installation of pasture taps and a new 400,000 gallon elevated water
tank in Lower Brule. The existing tank is in a location where the
slides (soil movement) have occurred. As a result, the stability of the
tank's foundation is in question.
OPERATION, MAINTENANCE AND REPLACEMENT BUDGET
The sponsors have and will continue to work with Reclamation to
ensure that their budgets are adequate to properly operate, maintain
and replace (OMR) their respective portions of the overall system. The
sponsors will also continue to manage OMR expenses in a manner ensuring
that the limited funds can best be balanced between construction and
OMR. In fiscal year 2003, the approved budget for OMR was $8.228
million, which was adequate. Funding was not adequate in fiscal year
2004 at the $6.254 level and will not be adequate at the same leveling
the administration's proposed fiscal year 2005 budget of $6.254 million
for OMR.
The project has been making significant progress especially over
the last 2 years with the initiation of operation of the OSRWSS Water
Treatment Plant near Ft. Pierre and the installation of a significant
quantity of pipeline. The result is the need for sufficient funds to
properly operate and maintain the functioning system throughout the
project. As a result, the OMR budget must continue to be adequate to
keep pace with the portion of the system that is placed in operation.
In addition to ongoing operation and maintenance activities, water
conservation is an integral part of the OMR of the project. Water
conservation not only provides immediate savings from reduced water use
and production, it also extends the useful life and capacity of the
system. Proposed funding is not adequate to perform water conservation
functions.
______
Prepared Statement of the Redlands Water & Power Company
Chairman Domenici and Senator Reid, I am writing to request your
support for an appropriation in fiscal year 2005 of $5,234,000 to the
Bureau of Reclamation within the budget line item entitled ``Endangered
Species Recovery Implementation Program'' for the Upper Colorado River
Region. The President's recommended budget for fiscal year 2005
includes this line-item amount. Of these funds, I respectfully request
the designation of $4,008,000 for the Upper Colorado River Endangered
Fish Recovery Program; $691,000 for the San Juan River Basin Recovery
Implementation Program and $535,000 for Fish and Wildlife Management
and Development, consistent with the President's budget request. The
requested fiscal year 2005 appropriation will allow construction of
fish passage, floodplain restoration activities, screening of existing
diversion canals, propagation facilities, endangered fish stocking, and
non-native fish management.
These funds are authorized by Public Law 106-392. Substantial non-
Federal cost sharing funds are provided by the States of Colorado,
Wyoming, Utah, and New Mexico, power users, and water users in support
of these recovery programs. These programs are carried out consistent
with State law and interstate water compacts.
The past support and assistance of your subcommittee has greatly
facilitated the success of these multi-State, multi-agency programs. I
request the subcommittee's assistance relative to fiscal year 2005
funding to ensure the Bureau of Reclamation's continuing financial
participation in these vitally important programs.
______
Prepared Statement of the Red River Valley Association
Mr. Chairman and members of the committee, I am Wayne Dowd, and
pleased to represent the Red River Valley Association, as its
President. Our organization was founded in 1925 with the express
purpose of uniting the citizens of Arkansas, Louisiana, Oklahoma and
Texas to develop the land and water resources of the Red River Basin.
The Resolutions contained herein were adopted by the Association
during its 79th Annual Meeting in Bossier City, Louisiana on February
19, 2004, and represent the combined concerns of the citizens of the
Red River Basin Area as they pertain to the goals of the Association.
Our western rivers played a very important part in the development
and economic success of the States west of the Mississippi River. An
agency responsible for the development of those water resources has
been the Bureau of Reclamation. In our four State region they have been
most active in Oklahoma.
I would like to comment on two specific requests for the future
economic well being of the citizens residing in the Red River Valley
region in Oklahoma. We support the following two studies and request
that the Bureau of Reclamation be funded at their full fiscal year 2005
capability.
North Fork of the Red River, OK, Investigation Study.--The W.C.
Austin (Altus Lake and Dam) Project in southwestern Oklahoma, is
authorized to provide water for irrigation to approximately 48,000
acres of privately owned land in southwestern Oklahoma; control
flooding on the North Fork of the Red River and augment municipal water
supply for the City of Altus. Secondary benefits include fish and
wildlife conservation and recreation opportunities. Project features
include Altus Dam, four canals, a 221-mile lateral distribution system
and 26 miles of drains. The Lugert-Altus Irrigation District (LAID) is
responsible for operation and maintenance of the project.
Water demand in the District and region is growing which, in turn,
is reducing future water availability and economic development
opportunities. This proposed investigation would: (1) develop a
hydrologic model of the NFRR watershed; and (2) evaluate opportunities
for augmenting water availability in the project region.
We support a 3-year comprehensive evaluation of water resources in
the North Fork of the Red River in Oklahoma for a total study cost of
$670,000. We sincerely appreciate your support in allocating $150,000
in the fiscal year 2004 appropriations.
An allocation of $150,000 is requested for the fiscal year 2005
appropriations.
Arbucle-Simpson Aquifer Study.--The Arbuckle-Simpson Aquifer has
been designated a sole source aquifer by EPA and a large number of
Oklahomans depend on its protection for their health and economic
future. This is an important source of water supply for: the citizens
of Ada, Sulphur, Mill Creek and Roff; the Chickasaw National
Recreational Area; Chickasaw and Choctaw Tribal members; and many
farmers and ranchers owning land overlying the basin. Contributions
from the aquifer also provide the perennial flow for many streams and
natural springs in the area. The Arbuckle-Simpson Aquifer underlines
approximately 500 square miles of south-central Oklahoma.
During recent years, a number of issues have emerged which have
caused concerns about the utilization and continued health of the
aquifer. These concerns include issues over water use, exportation of
water out of the area, impacts of groundwater development on the flows
in the significant springs and rivers, and competition for water and
water quality.
In order to assure the future well-being of the aquifer we support
a 5-year study to include detailed assessments of; the formation's
hydrogeology, water quality and vulnerability; groundwater-surface
water interactions; land use changes and related impacts; Tribal-State
water rights; and overall management of the resources. The initial
estimates put the total study cost at $2.7 million; however, due to its
complexity and new issues concerning Chickasaw and Choctaw Tribal
interest, a better cost estimate will be known after the second year of
the study. We appreciate your support of this study by funding the
first year of the study in the fiscal year 2004 appropriations for
$700,000.
We request $1,000,000 be appropriated for fiscal year 2005 and
support that the study be cost shared, 90 percent Federal and 10
percent State/Local funds.
The Red River Valley Association understands these are difficult
times with our Nation's budget, so we appreciate your support for these
studies in fiscal year 2004. We feel they are extremely important to
the welfare of the citizens in Oklahoma and request that you again
support these studies in fiscal year 2005.
We are always available to provide additional information and
answer whatever questions you may have.
______
Prepared Statement of the Santa Clara Valley Water District
CALFED BAY-DELTA PROGRAM, SANTA CLARA COUNTY, CALIFORNIA
Background.--In an average year, half of Santa Clara County's water
supply is imported from the San Francisco Bay/Sacramento-San Joaquin
Delta estuary (Bay-Delta) watersheds through three water projects: The
State Water Project, the Federal Central Valley Project, and San
Francisco's Hetch Hetchy Project. In conjunction with locally-developed
water, this water supply supports more than 1.7 million residents in
Santa Clara County and the most important high-tech center in the
world. In average to wet years, there is enough water to meet the
county's long-term needs. In dry years, however, the county could face
a water supply shortage of as much as 100,000 acre-feet per year, or
roughly 20 percent of the expected demand. In addition to shortages due
to hydrologic variations, the county's imported supplies have been
reduced due to regulatory restrictions placed on the operation of the
State and Federal water projects.
There are also water quality problems associated with using Bay-
Delta water as a drinking water supply. Organic materials and
pollutants discharged into the Delta, together with salt water mixing
in from San Francisco Bay, have the potential to create disinfection
by-products that are carcinogenic and pose reproductive health
concerns.
Santa Clara County's imported supplies are also vulnerable to
extended outages due to catastrophic failures such as major earthquakes
and flooding. As demonstrated by the 1997 flooding in Central Valley,
the levee systems can fail and the water quality at the water project
intakes in the Delta can be degraded to such an extent that the
projects cannot pump from the Delta.
Project Synopsis.--The CALFED Bay-Delta Program is an
unprecedented, cooperative effort among Federal, State, and local
agencies to restore the Bay-Delta. With input from urban, agricultural,
environmental, fishing, and business interests, and the general public,
CALFED has developed a comprehensive, long-term plan to address
ecosystem and water management issues in the Bay-Delta.
Restoring the Bay-Delta ecosystem is important not only because of
its significance as an environmental resource, but also because failing
to do so will stall efforts to improve water supply reliability and
water quality for millions of Californians and the State's trillion
dollar economy and job base.
The June 2000 Framework for Action and the August 2000 Record of
Decision/Certification contain a balanced package of actions to restore
ecosystem health, improve water supply reliability and water quality.
It is critical that Federal funding be provided to implement these
actions in the coming years.
Fiscal Year 2004 Funding.--An amount of $9 million was appropriated
for CALFED activities under the various units of the Central Valley
Project in fiscal year 2004.
Fiscal Year 2005 Funding Recommendation.--It is requested that the
committee support an appropriation add-on of $15 million, in addition
to the $15 million in the administration's fiscal year 2005 budget, for
a total of $30 million for California Bay-Delta Restoration.
SAN LUIS RESERVOIR LOW POINT IMPROVEMENT PROJECT
Background.--San Luis Reservoir is one of the largest reservoirs in
California, and is the largest ``off-stream'' water storage facility in
the world. The Reservoir has a water storage capacity of more than 2
million acre-feet and is a key component of the water supply system
serving the Federal Central Valley Project (CVP) and California's State
Water Project. San Luis is used for seasonal storage of Sacramento-San
Joaquin delta water that is delivered to the reservoir via the
California Aqueduct and Delta-Mendota Canal. The San Luis Reservoir is
jointly owned and operated by the U.S. Bureau of Reclamation and the
California Department of Water Resources.
The San Luis Reservoir provides the sole source of CVP water supply
for the San Felipe Division contractors--Santa Clara Valley Water
District (District), San Benito County Water District and, in the
future, Pajaro Valley Water Management Agency. When water levels in San
Luis Reservoir are drawn down in the spring and summer, high water
temperatures result in algae blooms at the reservoir's water surface.
This condition degrades water quality, making the water difficult or
impractical to treat and can preclude deliveries of water from San Luis
Reservoir to San Felipe Division contractors. In order to avoid the low
point problem, the reservoir has been operated to maintain water levels
above the critical low elevation--the ``low point''--resulting in
approximately 200,000 acre-feet of undelivered water to south of the
Delta State and Federal water users. The frequency of the low point
problem will increase in the future as delta pumping becomes more
restricted and demands grow for full allocation and use of all of the
water in San Luis Reservoir.
Project Goals and Status.--The goal of the project is to increase
the operational flexibility of storage in San Luis Reservoir and ensure
a high quality, reliable water supply for San Felipe Division
contractors. The specific project objectives are to:
--Increase the operational flexibility of San Luis Reservoir by
increasing the effective storage.
--Ensure that San Felipe Division contractors are able to manage
their annual Central Valley Project contract allocation to meet
their water supply and water quality commitments.
--Provide opportunities for project-related environmental
improvements.
--Provide opportunities for other project-related improvements.
From the Public Scoping meetings held in August 2002 and working with a
Stakeholder Committee and Regulatory Agencies, the District identified
approximately 75 conceptual solutions to the low point problem. From
these, the District has narrowed down the list of conceptual solutions
to seven feasible alternatives to be studied in the environmental
review process.
Fiscal Year 2004 Funding.--No appropriation was requested in fiscal
year 2004.
Fiscal Year 2005 Funding Recommendation.--It is requested that the
committee support authority for the U.S. Bureau of Reclamation to
conduct feasibility studies of the San Luis Reservoir low point problem
and an appropriation add-on of $5.5 million.
SAN JOSE AREA WATER RECLAMATION AND REUSE PROGRAM (SOUTH BAY WATER
RECYCLING PROGRAM)
Background.--The San Jose Area Water Reclamation and Reuse Program,
also known as the South Bay Water Recycling Program, will allow the
City of San Jose and its tributary agencies of the San Jose/Santa Clara
Water Pollution Control Plant to protect endangered species habitat,
meet receiving water quality standards, supplement Santa Clara County
water supplies, and comply with a mandate from the U.S. Environmental
Protection Agency and the California Water Resources Control Board to
reduce wastewater discharges into San Francisco Bay.
The Santa Clara Valley Water District (District) collaborated with
the City of San Jose to build the first phase of the recycled water
system by providing financial support and technical assistance, as well
as coordination with local water retailers. The design, construction,
construction administration, and inspection of the program's
transmission pipeline and Milpitas 1A Pipeline was performed by the
District under contract to the City of San Jose.
Status.--The City of San Jose is the program sponsor for Phase 1,
consisting of almost 60 miles of transmission and distribution
pipelines, pump stations, and reservoirs. Completed at a cost of $140
million, Phase 1 began partial operation in October 1997. Summertime
2003 deliveries averaged 10 million gallons per day of recycled water.
The system now serves over 450 customers and delivers over 7,000 acre-
feet of recycled water per year.
Phase 2 is now underway. In June 2001, San Jose approved an $82.5
million expansion of the program. The expansion includes additional
pipeline extensions into the cities of Santa Clara and Milpitas, a
major pipeline extension into Coyote Valley in south San Jose, and
reliability improvements of added reservoirs and pump stations. The
District and the City of San Jose executed an agreement in February
2002 to cost share on the pipeline into Coyote Valley and discuss a
long-term partnership agreement on the entire system. Phase 2's near-
term objective is to increase deliveries by the year 2010 to 15,000
acre-feet per year.
Funding.--In 1992, Public Law 102-575 authorized the Bureau of
Reclamation to work with the City of San Jose and the District to plan,
design, and build demonstration and permanent facilities for reclaiming
and reusing water in the San Jose metropolitan service area. The City
of San Jose reached an agreement with the Bureau of Reclamation to
cover 25 percent of Phase 1's costs, or approximately $35 million;
however, Federal appropriations have not reached the authorized amount.
To date, the program has received $26.5 million of the $35 million
authorization.
Fiscal Year 2004 Funding.--An amount of $3 million was appropriated
in fiscal year 2004 for project construction.
Fiscal Year 2005 Funding Recommendation.--It is requested that the
congressional committee support an appropriation add-on of $3 million
in fiscal year 2005 budget to fund the work.
______
Prepared Statement of the Southwestern Water Conservation District
Chairman Domenici and Senator Reid, the Southwestern Water
Conservation District (the ``District'') is a political subdivision of
the State of Colorado formed by the Colorado legislature in 1937 under
C.R.S. 37-47-101, et seq. The District is charged with conserving and
developing the waters of the San Juan and Dolores Rivers, tributaries
to the Colorado River.
On behalf of the District, we are writing to request your support
for an appropriation in fiscal year 2005 of $5,234,000 included as an
item in the administration's proposed budget for the Bureau of
Reclamation (``Reclamation'') labeled ``Endangered Species Recovery
Programs and Activities for the Upper Colorado River Region''. Of that
amount, $691,000 is designated for construction activities under the
San Juan River Basin Recovery Implementation Program (``San Juan
Program'') and $4,008,000, is designated for similar construction
activities under the Recovery Implementation Program for Endangered
Fish Species in the Upper Colorado River Basin (``Upper Basin
Program''). In addition, $535,000 is designated for Fish and Wildlife
Management and Development, consistent with the President's budget
request. The requested fiscal year 2005 appropriation will allow
construction of endangered fish passages, floodplain restoration
activities, screening of existing diversion canals, endangered fish
propagation facilities, endangered fish stocking, and non-native fish
management.
These cooperative programs involving the States of Colorado, New
Mexico, Utah and Wyoming, four Indian tribes, Federal agencies and
water, power and environmental interests are ongoing in the Upper
Colorado River and San Juan River Basins and have as their objective
recovering endangered fish species while water development proceeds in
compliance with the Endangered Species Act, State water law, and inter-
State water compacts.
The San Juan Program is supported by the States of Colorado and New
Mexico, the Southern Ute Indian, Jicarrilla Apache and Ute Mountain Ute
Tribes and the Navajo Nation, water development interests, Reclamation,
the Bureau of Indian Affairs, the Bureau of Land Management, and the
U.S. Fish and Wildlife Service (``FWS''). The Program provides
Endangered Species Act compliance for new depletions and for 600,000
acre-feet of existing depletions in Colorado and New Mexico, including
the Animas-La Plata and the San Juan-Chama Projects, which are to
provide water as part of tribal reserved water rights settlements. In
addition, the Program provided the ESA compliance for a 121,000 acre-
foot/year depletion to complete the Navajo Indian Irrigation Project.
In fiscal year 2005, the San Juan Program will continue substantial
recovery activities that include habitat restoration, endangered fish
propagation, and the development of fish passage structures in the San
Juan River to expand the available habitat for the endangered fish.
The Upper Basin Program is supported by the States of Colorado,
Utah and Wyoming, environmental organizations, power users, water
development interests, Reclamation, the FWS, and the Western Area Power
Administration. This Recovery Program, now in its fifteenth year of
operation, has the objective of cooperatively recovering four
endangered fish in compliance with the Endangered Species Act while
water development moves forward. Beginning in fiscal year 1994, the
Upper Basin Program initiated specific studies and actions in
preparation for the construction activities necessary to recover the
endangered fish.
The fiscal year 2005 funds for both Programs will enable their
vital activities to continue and to be successfully completed in
subsequent fiscal years. The past support and assistance of your
subcommittee has greatly facilitated the success of these multi-State,
multi-agency programs. We request the subcommittee's assistance
relative to fiscal year 2005 funding to ensure the Bureau of
Reclamation's continuing financial participation in these vitally
important programs.
______
Prepared Statement of the Southeastern Colorado Water Conservancy
District
Chairman Domenici and Senator Reid, I am writing to request your
support for an appropriation in fiscal year 2005 of $5,234,000 to the
Bureau of Reclamation within the budget line item entitled ``Endangered
Species Recovery Implementation Program'' for the Upper Colorado River
Region. The President's recommended budget for fiscal year 2005
includes this line-item amount. Of these funds, I respectfully request
the designation of $4,008,000 for the Upper Colorado River Endangered
Fish Recovery Program; $691,000 for the San Juan River Basin Recovery
Implementation Program and $535,000 for Fish and Wildlife Management
and Development, consistent with the President's budget request. The
requested fiscal year 2005 appropriation will allow construction of
fish passage, floodplain restoration activities, screening of existing
diversion canals, propagation facilities, endangered fish stocking, and
non-native fish management.
These funds are authorized by Public Law 106-392. Substantial non-
Federal cost sharing funds are provided by the States of Colorado,
Wyoming, Utah, and New Mexico, power users, and water users in support
of these recovery programs. These programs are carried out consistent
with State law and inter-State water compacts.
The past support and assistance of your subcommittee has greatly
facilitated the success of these multi-State, multi-agency programs. I
request the subcommittee's assistance relative to fiscal year 2005
funding to ensure the Bureau of Reclamation's continuing financial
participation in these vitally important programs.
______
Prepared Statement of the Upper Gunnison River Water Conservancy
District
Chairman Domenici and Senator Reid, I am writing to request your
support for an appropriation in fiscal year 2005 of $5,234,000 to the
Bureau of Reclamation within the budget line item entitled ``Endangered
Species Recovery Implementation Program'' for the Upper Colorado River
Region. The President's recommended budget for fiscal year 2005
includes this line-item amount. Of these funds, I respectfully request
the designation of $4,008,000 for the Upper Colorado River Endangered
Fish Recovery Program; $691,000 for the San Juan River Basin Recovery
Implementation Program and $535,000 for Fish and Wildlife Management
and Development, consistent with the President's budget request. The
requested fiscal year 2005 appropriation will allow construction of
fish passage, floodplain restoration activities, screening of existing
diversion canals, propagation facilities, endangered fish stocking, and
non-native fish management.
These funds are authorized by Public Law 106-392. Substantial non-
Federal cost sharing funds are provided by the States of Colorado,
Wyoming, Utah, and New Mexico, power users, and water users in support
of these recovery programs. These programs are carried out consistent
with State law and interstate water compacts.
The past support and assistance of your subcommittee has greatly
facilitated the success of these multi-State, multi-agency programs. I
request the subcommittee's assistance relative to fiscal year 2005
funding to ensure the Bureau of Reclamation's continuing financial
participation in these vitally important programs.
______
Prepared Statement of the Colorado River Congress
Chairman Domenici and Senator Reid, I am writing to request your
support for an appropriation in fiscal year 2005 of $5,234,000 to the
Bureau of Reclamation within the budget line item entitled ``Endangered
Species Recovery Implementation Program'' for the Upper Colorado River
Region. The President's recommended budget for fiscal year 2005
includes this line-item amount. Of these funds, I respectfully request
the designation of $4,008,000 for the Upper Colorado River Endangered
Fish Recovery Program; $691,000 for the San Juan River Basin Recovery
Implementation Program and $535,000 for Fish and Wildlife Management
and Development, consistent with the President's budget request. The
requested fiscal year 2005 appropriation will allow construction of
fish passage, floodplain restoration activities, screening of existing
diversion canals, propagation facilities, endangered fish stocking, and
non-native fish management.
These funds are authorized by Public Law 106-392. Substantial non-
Federal cost sharing funds are provided by the States of Colorado,
Wyoming, Utah, and New Mexico, power users, and water users in support
of these recovery programs. These programs are carried out consistent
with State law and interstate water compacts.
The past support and assistance of your subcommittee has greatly
facilitated the success of these multi-State, multi-agency programs. I
request the subcommittee's assistance relative to fiscal year 2005
funding to ensure the Bureau of Reclamation's continuing financial
participation in these vitally important programs.
______
Prepared Statement of Denver Water
Chairman Domenici and Senator Reid, I am writing to request your
support for an appropriation in fiscal year 2005 of $5,234,000 to the
Bureau of Reclamation within the budget line item entitled ``Endangered
Species Recovery Implementation Program'' for the Upper Colorado River
Region. The President's recommended budget for fiscal year 2005
includes this line-item amount. Of these funds, I respectfully request
the designation of $4,008,000 for the Upper Colorado River Endangered
Fish Recovery Program; $691,000 for the San Juan River Basin Recovery
Implementation Program and $535,000 for Fish and Wildlife Management
and Development, consistent with the President's budget request. The
requested fiscal year 2005 appropriation will allow construction of
fish passage, floodplain restoration activities, screening of existing
diversion canals, propagation facilities, endangered fish stocking, and
non-native fish management.
These funds are authorized by Public Law 106-392. Substantial non-
Federal cost sharing funds are provided by the States of Colorado,
Wyoming, Utah, and New Mexico, power users, and water users in support
of these recovery programs. These programs are carried out consistent
with State law and interstate water compacts.
The past support and assistance of your subcommittee has greatly
facilitated the success of these multi-State, multi-agency programs. I
request the subcommittee's assistance relative to fiscal year 2005
funding to ensure the Bureau of Reclamation's continuing financial
participation in these vitally important programs.
______
DEPARTMENT OF ENERGY
Prepared Statement of the Health Physics Society (HPS) and Health
Physics Program Directors Organization (HPPDO)
This written testimony for the record for fiscal year 2005 requests
$500,000 for the Health Physics Graduate Fellowship program through the
Department of Energy's Office of Nuclear Energy, Science and Technology
(DOE-NE) to help address the shortage of Health Physicists, which is an
issue of extreme importance to the safety of our Nation's workers,
members of the public, and our environment.
The Department of Energy has recognized that the safety of our
Nation's workers, members of the public, and our environment is in
jeopardy because of the projected near-term and long-term shortage of
sufficient educated radiation safety professionals to protect them. The
organizations responsible for the performance and education of
radiation safety professionals, i.e., the Health Physics Society (HPS)
and the Health Physics Program Directors Organization (HPPDO), are very
pleased that DOE-NE brought this crisis to the attention of the
committee and has committed to take action to address it. In his
testimony to the committee on March 3, 2004, William D. Magwood, IV,
Director of the Office of Nuclear Energy, Science and Technology,
stated, ``The Department is concerned that the Nation may soon not have
the trained health physicists who are needed to assure the safety of
all nuclear and radiological activities. With this budget, we begin
building a program to reverse the negative trends in this field as we
have already done in nuclear engineering.''
The committee has expressed strong support for the University
Reactor Fuel Assistance and Support program's efforts to provide
fellowships, scholarships, and grants to students enrolled in science
and engineering programs at U.S. universities, and has expressed
concern about the ability of the Nation to respond to the growing
demand for trained experts in nuclear science and technology. In Senate
Report 108-105, the committee also recognized the need to support
health physics academic programs as part of this effort when it wrote,
``The Committee recommendation strongly encourages the Department to
request sufficient funding in future years to fund all meritorious
proposals, including appropriate proposals to support health physics
university programs.''
We applaud DOE's response to the committee's encouragement by
including, in the words of Director Magwood, ``. . . a small but
important element to provide scholarships and graduate fellowships to
students studying the vital and too-often overlooked discipline of
health physics'' and we are appreciative of having the $200,000 in the
President's proposed budget applied to health physics programs.
However, the HPS and HPPDO believe that in order to meet the supply
needs of health physicists funding for the health physics programs
should be at least $500,000 in order to build a program to reverse the
negative trend.
Health Physics is the profession that specializes in radiation
safety, an integral and necessary distinct discipline within the
nuclear sciences. A recent workforce study by the Nuclear Energy
Institute (NEI) has shown that the projected demand for health
physicists for both the Government and Industry far surpasses the
current ability of the academic programs to meet these employment
demands, projecting a shortage of over 100 health physicists by 2011.
The number of health physics program graduates in 2001 was one-half the
number in 1996. A matter of great concern is that the NEI study does
not address the impact that the lack of sufficient qualified radiation
safety professionals will have on our Nation's health and homeland
security programs. For example, the homeland security effort to provide
training and radiation detection instruments to first responders, to
establish guidelines for responding to a radiological terrorist event,
to develop and deploy measures for the interdiction of radioactive
materials beyond our borders, and to employ nuclear and radiation
technology in screening for contraband materials requires health
physics professionals. A recent survey conducted by the Health Physics
Society indicates that present demand for radiation safety
professionals is approximately 130 percent of supply. The NEI study
projects a growth in that number to 400 percent by 2011 in the nuclear
industry alone.
We submitted testimony to the committee last year that requested
approximately $2 million in fiscal year 2005 and included a plan we
felt would stem the decline of health physics university academic
programs, and would assist in the public's understanding of radiation
safety as it is applied to the Nation's energy, health, and security
policies. That plan included academic program support for HP Graduate
Fellowship Programs, HP Undergraduate Scholarship Programs, Health
Physics Education & Research (HPER) Grants, and HP Minority-Majority
Partnerships. It also included Health Physics Society program support
for academic program ABET-ASAC Accreditation and HPS Science Teacher
Workshops. We are realistic about the pressures of this year's budget
and realize all six of these of these programs cannot be supported this
fiscal year.
We consider it important program to address immediately the HP
Graduate Fellowship program. We need between 15 and 20 fellows in a 2-
year Masters Degree program to start meeting our Nation's manpower
needs for radiation safety personnel. A single fellowship would be
about $30,000 annually, considering stipend, tuition and fees. Funding
of $500,000 would allow for approximately 15 fellows and allowance for
overhead administration costs. Funding at the administration's budget
request of $200,000 would support approximately 6 fellows, less than
half of the minimum need.
The committee's favorable consideration of this request will help
meet our Nation's radiation safety needs of the future.
______
Prepared Statement of the American Nuclear Society
Mr. Chairman and members of the subcommittee, on behalf of the
American Nuclear Society, I would like to express our concern regarding
recent changes in the direction of U.S. fusion research. In a letter
exchange with Dr. John Lindl of the Lawrence Livermore National
Laboratory, Dr. Raymond Orbach, the Director of the DOE Office of
Science stated the current administration position: ``now is not the
right time for us to invest in energy related R&D for fusion, for
either MFE (magnetic fusion energy) or for IFE (inertial fusion
energy)''. This position has been reflected in the Office of Fusion
Energy Science fiscal year 2005 budget request in which the so-called
``long-range'' fusion technology research activities have been
terminated. DOE has also been reducing its efforts on the advanced
design of fusion energy systems. The total funding cut in these areas
is about $9 million from the fiscal year 2003 level.
With these changes, U.S. magnetic fusion energy research will
become effectively a plasma physics research program while inertial
fusion energy research will become a high-energy-density physics
program. As the eliminated programs represent less than 5 percent of
fusion research expenditures, their elimination is based mainly on
policy grounds (as opposed to cost saving reasons).
It is difficult to understand this decision to terminate the fusion
technology program given the support for fusion energy research at the
highest administration levels,\1\ the plan for the United States to
join construction of the ITER device which is the highest priority
facility listed in DOE Office of Science's Strategic Plan,\2\ and the
continuing construction of the National Ignition Facility (NIF).
---------------------------------------------------------------------------
\1\ See for example President Bush's February 2003 statement at
http://www.whitehouse.gov/news/releases/2003/02/20030206-12.html:
``We're also going to work to produce electricity and hydrogen
through a process called fusion. Fusion is the same kind of nuclear
reaction that produces--that powers the sun. The energy produced will
be safe and clean and abundant. We've spent quite a bit of money, as
the senators here will tell you, on whether or not fusion works. And
we're not sure if it will be able to produce affordable energy for
everyday use. But it's worth a try. It's worth a look. Because the
promise is so great.
``So the United States will work with Great Britain and several
European nations, as well as Canada, Japan, Russia and China, to build
a fusion test facility and create the largest and most advanced fusion
experiment in the world. I look forward to working with Congress to get
it funded. I know you all have considered this in the past. It's an
incredibly important project to be a part of.
``Imagine a world in which our cars are driven by hydrogen and our
homes are heated by electricity from a fusion power plant. It'll be a
totally different world than what we're used to . . .''.
See also Secretary Abraham's January 2003 statement (at http://
fire.pppl.gov/) specifically stating that: ``It is imperative that we
maintain and enhance our strong domestic research program . . .
Critical science needs to be done in the U.S., in parallel with ITER,
to strengthen our competitive position in fusion technology.''
Also, the U.S. Department of Energy (DOE) Office of Science 2004
Strategic Plan states: ``The President has made achieving commercial
fusion power the highest long-term priority for our Nation. Our
challenge is to develop a science-based solution that harnesses fusion
energy to power our industry and homes. We will do this by joining an
international burning plasma experiment, ITER, and exploring other
promising technologies.''
\2\ See http://wwwofe.er.doe.gov/Sub/Mission/Mission_Strategic.htm.
---------------------------------------------------------------------------
It would seem prudent to maintain some balance in the program
between science and technology and between MFE and IFE. This is
reflected in several statements from the Fusion Energy Science Advisory
Committee (FESAC, which provides advice and recommendations to the DOE
Office of Science Director) in regard then to the fiscal year 2004
budget. At that time, DOE had proposed to terminate the fusion
technology effort in fiscal year 2004 but a Congressional add-on and a
strongly-worded letter from FESAC \3\ helped to provide a reprieve. The
fiscal year 2005 budget request includes the same fusion technology
funding cuts which, as part of the fiscal year 2004 budget, were
criticized by FESAC in 2003.
---------------------------------------------------------------------------
\3\ In a March 5, 2003 letter to Dr. Orbach, the FESAC said, ``. .
. devastating cuts to certain program elements are alarming; this note
expresses our most serious concerns,'' and commented, ``Thus, FESAC is
puzzled by the elimination in the fiscal year 2004 budget of funding
for fusion technology.'' The FESAC said, ``Similarly, inertial fusion
energy (IFE) is an important element of a balanced U.S. fusion program:
it provides the principal alternative to magnetic fusion and takes
advantage of NNSA investments in the National Ignition Facility. The
fiscal year 2004 budget, however, eliminates (fusion) chamber
technology for both MFE (magnetic fusion energy) and IFE.'' With
respect to the Advanced Design and Analysis program, the FESAC said,
``The study of future energy systems is a central component of fusion
research. Its evolving conceptualization of an eventual fusion power
plant has helped us visualize our target, while allowing us to identify
key scientific challenges.'' ``In summary,'' the 2003 FESAC letter
said, ``FESAC finds the Presidential request for fusion research
funding in fiscal year 2004 to be not only meager but also harmfully
distorted. It terminates components of the program that are truly
essential.'' (see http://www.ofes.fusion.doe.gov/More_HTML/
FESAC_Charges_Reports-
.html).
---------------------------------------------------------------------------
Fusion technology research addresses the fundamental scientific
issues that will be encountered in fusion systems with substantial
amount of fusion energy (including such fusion facilities as ITER and
NIF). It provides solutions to near term technology issues that will
certainly arise in building and operating facilities like the NIF and
ITER. The advanced design and analysis of fusion energy systems provide
a vision of the ultimate fusion energy goal and a tool that is useful
for guiding the highest leverage near term scientific research.
Other participants in ITER, in particular the E.U. and Japan, have
strong programs in fusion technology R&D in preparation for testing in
ITER and leading to a power reactor in the future. It would be
regretful at this stage for the United States to pull out of this R&D
area and to be left in the precarious position of having to catch-up
with our international partners in the future once we decide to
seriously develop the advanced technology required for attractive
fusion power plants (of either MFE or IFE types).
I hope that this subcommittee will share our concern about this
apparent disconnect between the administration fusion energy goals and
this recent fusion energy funding policy change as well as about the
increasing gap in fusion technology expenditure and expertise between
the United States and its international partners. We strongly recommend
additional funding to the Department of Energy, Office of Science,
Fusion Energy Sciences fiscal year 2005 budget, with at least $5
million specifically allocated to restoring the funding in the Fusion
Technologies and Advanced Design categories. We also recommend a strong
accompanying statement of support from the subcommittee on these
activities.
______
Prepared Statement of the Coalition of Northeastern Governors
Dear Mr. Chairman, the Coalition of Northeastern Governors (CONEG)
is pleased to provide this testimony for the record to the Senate
Appropriations Subcommittee on Energy and Water Development as it
considers fiscal year 2005 funding for the Office of Energy Efficiency
and Renewable Energy (EERE) of the U.S. Department of Energy (DOE).
While we recognize the many demands being placed upon Federal resources
in the coming year, we urge the subcommittee to provide the increased
Federal funding support for renewable energy programs, particularly the
national and regional partnerships that advance research, development,
demonstration and deployment of renewable energy technologies. The
Governors appreciate the subcommittee's previous support for one of
these partnerships, the Regional Biomass Energy Program (RBEP), and the
decision of the EERE to continue this valuable Federal-State-private
partnership for bioenergy. We request the subcommittee to fund the
EERE's renewable programs at a level that will enable DOE to continue
its support of the RBEP program at $5 million in fiscal year 2005.
Renewable energy plays an increasingly vital role in a strategy to
meet the country's near and longer-term energy needs. It is an
important component of the diverse mix of fuels essential for a
reliable energy supply. Today, biomass provides a larger percentage of
the Nation's total energy mix than do hydroelectric sources; and it is
responsible for more energy output than all other renewable
technologies combined. Ethanol and electricity generation from biomass
feedstocks contribute over 3 percent of the Nation's energy
consumption. In the Northeast, bioenergy produced from the region's
forest and agricultural resources contributes to approximately 5
percent of the region's energy consumption. Some of the most promising
technologies which can meet renewable energy needs in the near-term and
lessen the Nation's dependence on fossil fuels use biomass.
While the CONEG Governors recognize Federal support for bioenergy
can take many forms, we specifically support a level of funding for the
EERE's renewable energy programs that will enable the DOE to continue
its support of the Regional Biomass Energy Program and its effective
network of regional host organizations at a level of $5 million in
fiscal year 2005. This RBEP network is an important partner in the
Federal Government's multi-faceted initiatives to encourage a diverse
energy resource mix and energy efficiency across the country. Funding
for the RBEP program will allow this valuable Federal-State-private
sector initiative to continue--without interruption--the pioneering
regional projects and technical assistance networks which help bring
bioenergy into regional energy markets across the Nation.
The revitalized RBEP encompasses all 50 States in five regional
programs. It is an important tool in the Nation's effort to realize the
opportunities which bioenergy offers for energy production, economic
development and sound environmental management. The regional program is
uniquely situated to target program resources to the specific biomass
opportunities of each part of the country. Through a blend of projects
and technical assistance networks, the RBEP identifies opportunities
for and helps reduce barriers to the commercialization of biomass
technologies; promotes coordinated State and Federal public policies in
support of bioenergy; and educates consumers on the opportunities and
benefits of biomass energy.
The RBEP's success is closely tied to its use of State-based
regional organizations to administer and coordinate program resources
and activities. These organizations, with their direct ties to elected
and appointed State decision-makers and agencies, are uniquely able to
leverage Federal, State and private sector resources and cooperation
across State and Federal agencies, among various States, and between
the public and private sector. These organizations have:
--the ability to gain governors' and State legislators' attention and
commitment to bioenergy;
--the capacity to leverage resources and cooperation for
collaborative policy and technical projects from private
companies and multiple State and Federal agencies--
transportation, environmental protection, public utility
commission, and agriculture;
--the capability to move quickly to address emerging issues; and
--the ability to offer staff with extensive biomass program
management experience.
The CONEG Policy Research Center is pleased to be part of the
Northeast Regional Biomass Program (NRBP) and its work to advance
renewable biomass energy, the region's most abundant resource. From
Maine to Maryland, the NRBP encompasses a wide range of activities that
cover all biomass resources and technologies. The NRBP makes possible
State-level working groups that promote public-private partnerships for
biomass development, and it helps promote policies that support
renewable biomass. It encourages demonstrations of leading edge
technologies, and conducts public education and outreach that helps
condition the marketplace for new bioenergy technologies and biobased
products. A major strength of the NRBP is its ability to link biomass
development to other public policy goals, such as creating new economic
opportunities, preserving agricultural or forest lands for current use,
and reducing air and water pollution. As Renewable Portfolio Standard
programs have and continue to be promulgated in the Northeast States,
biomass power has recently begun to be a focus of new and significant
project development. The contributions of the NRBP program over the
years has played, and will continue to play, an essential role in
stimulating and facilitating this market development through its
working groups, extensive networking, and leadership of its regional
coordinator.
Congressional funding for EERE's renewable energy programs at a
level in fiscal year 2005 that will permit $5 million for the RBEP will
allow these partnerships, with their administration by proven host
agency organizations, to strengthen the established bioenergy networks
that transfer experience and coordinate activities within a State,
throughout a region and across the Nation.
We thank the subcommittee for this opportunity to share the views
of the Coalition of Northeastern Governors, and we stand ready to
provide you with any additional information on the importance of the
Regional Biomass Energy Program and the Northeast Regional Biomass
Program to the Northeast and the rest of the Nation, as well as the
vital role biomass can play in meeting the Nation's energy needs.
______
Prepared Statement of Bob Lawrence & Associates, Inc.
COST/BENEFITS OF GEOTHERMAL ENERGY R&D
Mr. Chairman and members of the subcommittee, my name is Dr. L.R.
(Bob) Lawrence, Jr., and I am President of Bob Lawrence & Associates,
Inc., a consulting firm in Alexandria, Virginia. I, and my firm, have
been working with the Department of Energy's Geothermal program since
1990, and during the past 14 years, we have seen many positive changes
in the program which are helpful to the industry and to our country as
a whole. I come before you, today, to request $30 million for the
program for fiscal year 2005, the same level that was appropriated for
fiscal year 2003, of which, $6 million would be applied to the
GeoPowering the West portion of the Program.
Geothermal electric generation, at 16 billion Kw-hrs per year, is
the largest contributor to delivered electricity from Renewables except
for Hydro generation. For the past several years, the Geothermal
Technology program has been held back at budget levels below $30
million. This has been harmful to the industry which is dependent upon
the technology evolving from the DOE programs to develop new and ever
more difficult resources. During the fiscal year 2003 appropriations
process, the Senate funded the Geothermal program at $37 million.
Although the Conference only funded the program at $30 million, it was
certainly a step in the right direction. It is consummately in the
national interest to increase the funding level of this program to $30
million annually to accelerate increased geothermal use for energy
purposes. The fiscal year 2004 appropriation of $25.5 million was,
unfortunately, a step backward, causing cuts in numerous, high quality,
ongoing programs.
At $30 million, it gives the Geothermal program the chance to move
forward with industry on several fronts. At the $30 million level,
strong programs, heavily cost shared with industry, can move ahead
addressing Enhanced Geothermal Systems, where tertiary treated waste
water is injected deep into the earth to provide additional needed
water to under-saturated geothermal resources. The GeoPowering the West
program, addressing 19 Western States, can be strengthened. And most
importantly, Cost-Shared Exploratory Drilling, Reservoir Definition,
and New Resource Exploration can move forward in areas where it has
slowed to nearly a stop. Even at $30 million, the Geothermal program
will be the lowest funded of all Renewables, even though the program
returns the most revenue to the government and has been the most
successful based on present generation annual levels.
OVERVIEW
Cost-shared Department of Energy investments in geothermal energy
R&D, starting in the 1970's, have made possible the establishment of
the geothermal industry in the United States. Today that industry
generates over 16 billion kilowatt-hours per year in the United States,
alone. The total, retail value of this electricity exceeds $1 billion
per year. The Industry:
--returns over $41 million annually to the Treasury in royalty and
production payments for geothermal development on Federal
lands;
--supplies the total electric-power needs of about 4 million people
in the United States, including over 7 percent of the
electricity in California, about 10 percent of the power in
Northern Nevada, and about 25 percent of the electricity for
the Island of Hawaii (the Big Island);
--employs some 30,000 U.S. workers;
--uses over $500 million worth of steel structures;
--displaces emissions of at least 16 million tons of carbon dioxide,
20,000 tons of sulfur dioxide, 41,000 tons of nitrogen oxides,
and 1,300 tons of particulate matter every year, compared with
production of the same amount of electricity from a state-of-
the-art coal-fired plant;
--has installed geothermal projects worth $3.0 billion overseas,
mostly in the Philippines and Indonesia.
NEAR TERM POTENTIAL
The geothermal industry, with appropriate government R&D support,
can provide an additional 600 Megawatts of power in about 18 months.
This power will come from:
--Use of tertiary treated wastewater injection (Enhanced Geothermal
Systems): 200 MW.
--Implementation of new technologies into old plants, well field
upgrades, and turbine replacements: 400 MW.
In addition, direct use increases, through the GeoPowering the West
initiative, will provide an additional, near term, 100MW of use for
heating, cooling, industrial drying, agricultural applications, and
recreational purposes.
This is an additional 700MW of clean, renewable, geothermal energy
available within 2 years with appropriate government funding and
support, right in the heart of the western States that presently have
the most critical power problems.
LONGER TERM POTENTIAL
The long term potential of Geothermal energy in the United States
is estimated to be 25,000 MW of electrical generation and an additional
25,000 MW of direct use. To date, the geothermal industry has made use
of only the highest grade geothermal resources in the United States.
The keys to realizing the enormous potential of geothermal energy are
improved technology to tap resources that can not, at present, be
economically developed, and cost shared programs with industry for
accelerated implementation of the technology. Substantial investments
in R&D by the geothermal industry, acting alone, have not happened and
are unlikely, because the developers are uniformly financial entities,
with small engineering components, which rely on the technology
centered at national laboratories and university institutes for project
development and engineering.
TECHNOLOGY NEEDS
Applied R&D is essential to reduce the technical and financial
risks of new technology to a level that is acceptable to the private
sector and its financial backers. The U.S. geothermal industry has
conducted a series of workshops to determine the industry's needs for
new technology and has recommended cost-shared R&D programs to DOE
based on the highest-priority needs.
The Geothermal Industry supports the Strategic Plan of the DOE
Office of Geothermal Technology. The plan calls for increased spending,
quickly reaching $50 to $60 million per year, a geothermal budget level
consistent with that recommended by the President's Committee of
Advisors on Science and Technology (PCAST) in their 1997 report.
Technical needs include:
Drilling.--Geothermal drilling differs dramatically from oil and
gas drilling since the necessary production holes are three times as
wide as oil and gas production holes, and they must be drilled through
hard, volcanic rock rather than sedimentary soils. Also, because of the
high temperatures and corrosive nature of geothermal fluids, geothermal
drilling is much more difficult and expensive than conventional oil and
gas drilling. Each well costs $1 million to $3 million, and an average
geothermal field consists of 10 to 100 or more wells. The drilling
technology program continues to show cost-saving advancements.
Exploration and Reservoir Technology.--The major challenge facing
the industry in exploration and development of geothermal resources is
how to remotely detect producing zones deep in the subsurface so that
drill holes can be sited and steered to intersect them. No two
geothermal reservoirs are alike. Present exploration techniques are not
specific enough, and result in too many dry wells, driving up
development costs. The industry needs better geological, geochemical,
and geophysical techniques, as well as improved computer methods for
modeling heat-extraction strategies from geothermal reservoirs.
Energy Conversion.--The efficiency in converting geothermal steam
into electricity in the power plant directly affects the cost of power
generation. During the past decade, the efficiency of dry- and flash-
steam geothermal power plants was improved by 25 percent. It is
believed that geothermal power-plant efficiency can be improved by an
additional 10 to 20 percent over the next decade with a modest
investment in R&D.
Reclaimed Water Use for Geothermal Enhancement.--Many potential
geothermal resources are not utilized due to insufficient water in the
hot zones. Reclaimed water, the disposal of which is an expensive
problem for many communities, could be used productively, in many
cases, to enhance the geothermal resources, making them more
economically viable for local use. In the United States, over 300
western communities each have a potentially useable geothermal resource
co-located within 5 miles. The technology which will evolve from this
effort could be broadly applicable to these communities and their
combined energy and wastewater problems.
GeoPowering the West.--This initiative, now in its fourth year,
seeks to develop, as well as provide information and implement, those
technologies needed to utilize geothermal resources in the over 300
presently identified ``co-located'' communities in 19 Western States.
Studies now underway may increase the number of communities to over
350. The program is creating partnerships with the subject communities
to utilize hot geothermal waters for direct use applications such as
space conditioning, industrial drying, agricultural applications, and
recreational purposes. Additionally, the program will provide
technology needed to explore these resources for generation potential.
In the short time that this program has been ongoing, it has played a
major role in expanding the number of States with geothermal electric
generation potential from four to eight, or a doubling of candidate
States. This program is singularly important to the expanded geothermal
future of our country and should be expanded to $6 million for fiscal
year 2005.
GeoSciences.--Basic research in the GeoSciences needs to continue
at national laboratories, universities, and research institutes to
expand and advance the knowledge base in this technology area. Funding
the GeoSciences ensures a flow of new, capable, engineers and
scientists into this important field as well as expanding the basic
knowledge base surrounding geothermal resources and geothermal energy.
It is important for this program to continue.
CONCLUSION
The cost shared, cooperative, research, development, and
implementation projects of the Department of Energy's Geothermal
program should serve as a model for programs whose purpose is to
provide and enhance national benefits, while reaping a return on
investment for the taxpayer. The $41 million that the industry returns
to various governmental entities in royalties and leases exceeds,
annually, the amount that the government invests in the future of the
technology. Yet, the future of the technology and the expanded industry
is closely tied to these programs. Clearly, the Geothermal research and
technology development is an outstanding example of a proper, taxpayer
investment. $30 million is required for fiscal year 2004.
______
Prepared Statement of Bob Lawrence & Associates, Inc.
REQUIRED REPLACEMENT OF THE TOPOCK-DAVIS-MEAD TRANSMISSION LINE
Mr. Chairman and members of the subcommittee, my name is Bob
Lawrence, and I am President of Bob Lawrence & Associates, Inc., a
consulting firm in Alexandria, VA. Our company is involved in a variety
of high technology subjects largely related to the Energy sector.
I am here, today, to request an appropriation of $20 million for
fiscal year 2005 for replacement of the Topock-Davis-Mead transmission
line with Aluminum Matrix Composite Conductor (AMC). The Topock-Davis-
Mead line runs along the Colorado River on the Western boundary of
Arizona and serves the electricity needs of the communities there
including Havasu City (pop. 50,000), Bullhead City (33,769), Mohave
Valley (13,694), Needles, CA (5193) and the Mohave Indian Tribe. It is
the primary load server for this region. The line also provides needed
service to Kingman, AZ (22,092) and Blythe, CA (21,376). The line is
operating with all of its capacity allocated. The $20 million requested
would be the first of two increments for a total of $35 million to
replace this line with AMC conductor. Studies accomplished by WAPA and
others show that to double the capacity of this transmission corridor
would cost $10 million to $17 million more with conventional
technologies than it would using the AMC conductor option. A simple
line for line replacement, using the AMC option, will increase the
capacity by well over a factor of 3, and some studies indicate a factor
of 8.
WAPA ratepayers presently pay about $80 million more to the
government than WAPA receives in appropriations on an annual basis. If
WAPA were a private utility, these funds would be available to upgrade
their system. In the WAPA case, the ``surplus'' goes back to the
Federal treasury. Yet, the WAPA budget request to Congress contains
only $12 million for ``construction'' which is woefully inadequate to
maintain their system with needed upgrades. Therefore, it is requested
that the funding to pay for the upgrading of this line come from the
annual ``surplus,'' and be designated ``non-reimbursable.''
The service area for this line is one of the hottest regions of the
United States. Without air conditioning, individuals of fragile health
in the region could be at considerable risk. The region served by
Topock-Davis-Mead is populated largely by retirees, causing a greater
than normal percentage of elderly in the population. These are the
people that could be particularly, negatively affected by a
transmission shutdown, causing a loss of electrical service, and air
conditioning, during peak summer temperatures. The situation is now
approaching critical.
The region is experiencing load growth, as much as 10 percent per
year in some areas. The Parker-Davis dam system is operating at full
capacity, and all of the generated power is being delivered through the
transmission system. There is no capability for additional transmitted
power in the immediate region above what is presently demanded.
WAPA is legislatively responsible for ``system reliability,'' but
is not required to provide for load growth beyond the generation of the
Parker-Davis dam system.
The Topock-Davis-Mead line, when running at peak capacity, is
thermally limited and limited by the sag. If additional power is
transmitted, the line would sag beyond the safe limits established by
national electrical safety code standards. It was excessive sag in a
transmission line that triggered the blackout event of August 14, 2003,
in the Northeast and Midwest. It is essential that this be avoided in
this WAPA DSR transmission trunk.
The conventional solution to this problem would be to construct a
new transmission line in the area, requiring new right-of-way, new
towers, and new lines. The transmission path is in an archeologically
significant and environmentally sensitive area, which makes new right-
of-way an unattractive option.
The Department of Energy has been evolving this potential solution
at the request of Congress. Since 1998, DOE has been developing and
testing the Aluminum Matrix Composite Conductor (AMC), also called
Aluminum Conductor Composite Reinforced (ACCR). This is a high capacity
transmission line conductor that could provide very substantial
capacity increases by simply replacing the old technology lines with
the new, AMC/ACCR option. Field testing of this option, now underway,
has met all needed utility specifications. AMC/ACCR is in operational
service in Hawaii, North Dakota, Minnesota and Arizona. AMC/ACCR is now
available for commercial sale and application.
The use of this new technology on the Topock-Davis-Mead line would
offer key benefits including:
--Ensure delivery of power to the citizens of the surrounding
communities.
--Improve the reliability of the region by addressing a known
problem.
--Elimination of a bottleneck resulting in an 8-fold increase in
power transfer capability (in this case the flow would be north
to Mead, the most critical 500kV feed into Southern California)
--Preserve the visual landscape since no visual change to the
existing line would occur and no additional land is required.
--Avoid the environmental impact associated with building a new line
and time delays that can occur during the permitting process.
--Provide additional revenue to the Federal Government in the form of
increased power sales or additional wheeling charges for
carrying power from other producers.
Finally, this project would provide a ``showcase installation'' for
a new, well tested, technology and would spur further adoption. The
experiences of the past 2 years have clearly shown that our Nation
needs an affordable option that will improve, upgrade, and increase the
capacity of our national grid without adding to the environmental
insult of overhead, electric transmission lines. The Aluminum Matrix
Composite Conductor appears to be the most near term option available.
The program to develop this option was begun in fiscal year 2002
with $4 million, and was continued through fiscal year 2003 and fiscal
year 2004 at $4 million per year. Substantial cost sharing from both
industry and utilities occurred. The need for the Congressionally
mandated $4 million per year has now ended. Accessories tailored for
each conductor installation were also developed and tested. The testing
included a low-voltage outdoor test span operated by ORNL that can
continuously cycle a 1,200-foot multispan line to high-temperature
operation.
Multi-year field trials are now demonstrating medium and large size
conductor performance under different conditions, such as various
voltages, mechanical loading conditions, and operating conditions. The
testing is proceeding flawlessly. WAPA is hosting two of the ongoing
field trials which began in fiscal year 2002 under this program.
In conclusion, I would like to thank the chairman and his staff for
having the foresight to provide the needed funding to bring the
development program and the status of the technology to this point.
Clearly, it is the best option to replace outdated, conventional
technology lines in critical locations such as the Topock-Davis-Mead
corridor.
______
Prepared Statement of Bob Lawrence & Associates, Inc.
HIGH TEMPERATURE SUPERCONDUCTIVITY R&D
Mr. Chairman and members of the subcommittee, my name is Bob
Lawrence, I am President of Bob Lawrence and Associates, Inc., of
Alexandria, Virginia. I appreciate the opportunity to present this
testimony, today, on the important subject of Superconductivity. I am
here to request an appropriation of $49 million for the Department of
Energy program for fiscal year 2005.
BACKGROUND
Of all the technologies which are emerging today, Superconductivity
is arguably one of the most promising in terms of dramatic, potential
enhancements to American infrastructure and national benefits.
Laboratory results have moved into government-industry partnerships
aimed at accelerating superconducting products into the electrical
marketplace with concurrent, dramatic, energy efficiency and
environmental improvements. Energy Committee Chairman Pete Domenici
summed up the promise and accomplishments of this program, earlier this
year, when he noted that, 20 years ago, superconducting material only
came in 1 centimeter lengths, whereas today, they are making cables out
of it. This is exceptional progress in research.
Superconductivity is the property of a material to conduct
unusually large quantities of electrical current with virtually no
resistance. Since the middle of the century, researchers have known
that certain ceramic materials show superconducting properties when
they approach a temperature near absolute zero, or the temperature of
liquid hydrogen and liquid helium. Practical applications of these
materials are difficult, however, since they are characteristically
very costly to make, very brittle in nature, and prohibitively
expensive to cool to the required, very low temperature.
In 1986, a new class of ceramic materials was discovered which
showed superconducting properties at temperatures up to 34K. Since that
time, improvements have produced superconducting materials at the
temperature of liquid nitrogen, or 72K. These ``high temperature''
superconducting (HTS) materials have generated great excitement since
the projected costs of applications have dropped by orders of
magnitude, and first viable products appear to be within reach.
THE PROGRAM
Today, a number of HTS-based pieces of electrical equipment are at
the prototype stage with capable manufacturing entities intimately
involved. Early candidates for commercial products include
Transformers, Electric Motors, Generators, Fault Current Limiters, and
underground Power Cables. Later in the commercialization process,
replacements for overhead transmission lines are also foreseen;
however, this will not be an early application. To enhance and
accelerate the prospects for early commercialization of HTS products,
the Department of Energy has developed a vertically integrated program
in which product oriented teams are focused on the development and
implementation of HTS equipment. Under the title of the
Superconductivity Partnership Initiative (SPI), these vertically
integrated teams typically each consist of an electric utility, a
system manufacturer, an HTS wire supplier, and one or more national
laboratories. Supporting these vertical teams is a Second Generation
Wire Initiative, in which development teams are exploiting research
breakthroughs at Los Alamos, Argonne, and Oak Ridge National labs that
promise unprecedented current-carrying capabilities in high-temperature
superconducting wires. Since superconducting wire is the main component
of all superconducting cables, products and systems, the price drop
projected by the Second Generation technology is highly significant and
important to successful commercialization.
Transformer development is being carried out by the team of
Waukesha Electric Systems, Intermagnetics General Corporation,
Rochester Gas and Electric, Rensselaer Polytechnic Institute, and the
Oak Ridge National Laboratory. This team has conducted a series of
reference designs concentrating mostly on a 30-MVA, 138-kV/13.8kV
transformer which is representative of a class expected to capture
about half of all U.S. power transformer sales in the next two decades.
According to industry experts, Japan and Europe are somewhat ahead of
the United States in transformer development.
The United States HTS electric motor team is headed by Reliance
Electric with American Superconductor Corp as the HTS coil supplier and
manufacturer. Also on this team are Centerior Energy (a utility
company) and Sandia National Laboratory. ``In February 1996, Reliance
Electric successfully tested a four-pole, 1800 rpm synchronous motor
using HTS windings operating at 27K at a continuous 150kW output. The
coils . . . achieved currents of 100A . . . , 25 percent over the
initial goal of 80 A.'' This program has now been extended to ``develop
a pre-commercial prototype of a 3.7MW HTS motor''. The demonstration of
this motor will be an important milestone in the commercialization
process, since it will provide a measure of efficiency, reliability,
and projected costs and benefits.
Generator efforts in the United States have recently begun with a
team headed by General Electric. The efforts here, again, appear to be
behind those in Japan. In Japan, funds expended on HTS design,
development, and demonstration exceed those in the United States. This
Japanese, heavily funded effort involves 16 member organizations with
representation from the electric utilities, manufacturers of electric
power equipment, research organizations, manufacturers of HTS wire and
tape, refrigeration and cryogenic suppliers, and independent research
institutes.
Fault Current Limiters represent a new class of electric utility
equipment with many attractive properties. This type of equipment may,
in fact, be a market leader, since its properties appear to provide
substantial potential cost savings to electric utilities as well as
containing power outages. This type of equipment is only possible using
superconducting technology.
Exciting developments have taken place in the field of underground
HTS cables for transmission and distribution. In the United States, two
teams are pursuing two different technical concepts, but each team is
led by a powerhouse electrical cable manufacturer; Pirelli North
America, and Southwire Co. First design cables are now under test in
practical applications. Worldwide, about 10 superconducting electric
power cable demonstrations are now underway, in various stages of
completion.
THE BENEFITS
Dramatic cost and energy savings are projected when the candidate
systems and products from superconducting technology are fully
implemented, with incremental benefits accruing from the time of
technology readiness and commercial introduction to the time of full
market penetration. When fully implemented into the electric generation
and utilization sectors of our economy, superconducting technology is
expected to save $8 billion per year in retail value of presently lost
electricity, lost due to transmission and distribution. An additional
$8 billion per year can be saved with the installation of
superconductive transformers and electric motors. Yet another $1
billion or so can be saved by full implementation of HTS generators.
This totals fully implemented benefits of $17 billion per year from
full implementation of HTS technology in presently envisioned
equipment. Oak Ridge National Laboratory (ORNL) experts and studies
carried out by Energetics, Inc. indicate that HTS underground cable
savings would be in the range of 125,000 kWhr per mile, per year. At
the present average rate of 6.89 cents per kWhr, this corresponds to
retail level monetary savings of $8,612.50 per mile per year. These
savings will flow directly into reductions in taxpayer electric bills,
under a competitive electricity delivery environment.
EFFECTS OF FISCAL YEAR 2004 CUTS
As is well known, the Department of Energy, for fiscal year 2004,
elected to fund the Superconductivity program at $32 million, even
though the final, Conference version of the fiscal year 2004
appropriations bill ``urged'' a funding level of $48 million. This
decision has been devastating to the program and the industry, and if
it isn't corrected, the damage to the program will be such that it will
take many years to recover. This type of action must absolutely be
avoided in the future.
NATIONAL SECURITY
Above ground transmission lines are vulnerable to terrorist attack,
as well as severe weather. High Temperature Superconductivity would
allow transmission lines to be placed underground with very large
capacity increases per cross section. This also allows for a more
environmentally effective use of the surface land. Higher national
security and better environmental posture: a good combination.
There are Defense applications of this technology, enabling in
nature, applying to directed energy weapons. Exact applications are
sensitive in nature, but it is important to note that the benefits from
success in this technology will apply to many cross sections of the
American economy and infrastructure.
In conclusion, Mr. Chairman, I thank you for the opportunity to
present this testimony. Major efforts in this technology are now
underway in China, South Korea, Japan, and a number of European
countries, as well as the United States. It is very important that we
make every effort to be ahead of the rest of the world in this
technology, and for that reason, I ask that the committee provide an
appropriation of $49 million for the Superconductivity R&D program for
fiscal year 2005.
______
Prepared Statement of the Solar Energy Industries Association
The Solar Energy Industries Association represents photovoltaic,
concentrating solar power, and solar thermal manufacturers,
distributors, contractors, and installers nationwide. I am writing to
request research funding of $100 million for photovoltaics, $20 million
for Concentrating Solar Power, and $5 million for Solar Heating and
Lighting, as well as potential future Federal procurement programs.
This is a substantial increase over current funding levels, but in line
with funding proposed in the conference Energy Bill, as supported by
SEIA.
PHOTOVOLTAICS
Our industry is at a critical decision point. While clean energy
industries soar worldwide, the United States is increasingly left
behind. Worldwide solar production in 2003 was more than 760 million
watts, up from just over 550 million in 2002. However, the United
States produced just 109 megawatts--the first U.S. production decline
in recent memory. We must stop this trend, before we become dependent
on importing yet another source of energy.
The overall industry is supercharged; world PV production is now
doubling almost every 2 years. Bell Labs produced the first watt of
commercial PV in 1954, and we expect to produce more than one billion
watts in 2004. However, increasingly, that production occurs in Japan
and Germany.
Leaving aside environmental and energy security concerns, this is a
major issue. The Renewable Energy Policy Project estimates that each
megawatt of solar produced supports 35.5 jobs over 10 years--more than
any other energy source. At that rate, a solar industry which continues
to grow at current rates would support more than 100,000 jobs by 2020;
an industry half the size of General Motors. Many of these are very
high value-added manufacturing jobs, with major manufacturing in TN,
NJ, MI, IL, MA, OH, MD, WA, DE, CA, and elsewhere. Federal R&D has a
real impact on where these plants develop. My members tell me that the
opportunity to participate in DOE's world-class research is one of
their primary considerations when deciding where to locate
manufacturing.
Other nations have noted this industry's potential, and are
coupling incentive programs with increasingly aggressive research
funding. However, while the photovoltaics industry has more than
doubled in size since 2000, U.S. research funding for photovoltaics has
remained essentially flat; this makes even less sense when you consider
the program's impressive results. The DOE PV research program has been
a major reason why solar manufacturing prices have dropped by more than
half in the last 10 years alone. (Below--DOE's PV Roadmap is now
predicting that solar electricity will be available for less than $.08/
kWh within the next 10 years.) These innovations occur in a competitive
cost-sharing environment that ensures rapid development of technologies
that would not likely emerge otherwise. As a result of this excellent
work, PV electricity is now cost-competitive in a growing number of
markets for homes, businesses, and remote applications alike--the
number and size of these markets will only increase as costs continue
to fall.
Continuing advances in crystalline silicon technologies could bring
prices down by half again, while DOE's Systems-Driven Approach squeezes
optimum efficiency and reliability out of every part of the solar
system, from panels to connectors to inverters. Meanwhile, the Thin
Film Partnership is beginning large-scale commercialization of their
products, which use much less raw material and more rapid continuous-
line production processes. Equally exciting are the ``generation beyond
next'' nanostructured and organic solar cells being developed by many
domestic companies and labs--these flexible cells offer the possibility
of manufacturing millions of watts of solar on machines similar to
today's printing presses, out of chemicals we currently use to make
paint and toothpaste.
The 2003 Peer Review of DOE's Photovoltaics subprogram, assembled
by a team of eminent scientists and researchers including a retired
Scientific Advisor for Exxon Corporate Research, heaped praise upon the
program's achievements, noting ``The role of the laboratories in the
projects reviewed has been outstanding in terms of quality of science,
technology and engineering; relevance to national needs and DOE
mission; and programmatic performance, management and planning.''
However, they felt the need to note that DOE is now in the position of
having to choose between research and basic equipment needs:
``Equipment and facilities are aging and failing at the
laboratories . . . Funds for personnel and current research are being
cannibalized to sustain equipment that should have been replaced long
ago . . . An exceptional research capability at both Sandia and NREL is
at risk in the immediate future unless DOE develops a strategy for
dealing with these ongoing strains . . . the panel heard frequent
references to specific equipment and facilities that were:
``--Aging and less capable than new equipment.
``--Failing from lack of maintainability.
``--Being kept in operation at the expense of funds to support staff
patent applications, conferences and publications.
``It appears that the operating budgets at NREL and Sandia are
being partly cannibalized to keep basic equipment operating.''
(Emphasis added.)
The current fiscal year 2005 administration request for the
photovoltaics program--ca. $75 million--is insufficient to support the
research needs of the evolving technology and growing industry behind
these programs. If we are to meet DOE's goal of PV-generated
electricity for $.06/kWh by 2020, funding needs to be increased
substantially. SEIA requests $100 million for the photovoltaics program
in total.
CONCENTRATING SOLAR POWER
CSP systems currently produce 354 MW of clean, reliable, and
relatively inexpensive power in the California desert--enough for ca.
120,000 homes. New companies are now entering this market with newer,
more refined, and more sophisticated technologies. Early construction
has begun for another 50 MW plant in Nevada, and a 1 MW plant in
Arizona. Other project sites are in early negotiations now, and the
Western Governor's Association has stated that they support further
developing this resource. Recently, New Mexico Governor Bill Richardson
announced he plans to use $3 million in capital outlay funds to attract
concentrating solar power plants to his State.
A recent ``due diligence'' review of the CSP program, conducted by
third party consultants Sargent and Lundy under the auspices of the
National Research Council, found that ``CSP technology is a proven
technology for energy production, there is a potential market for CSP
technology and that significant cost reductions are achievable assuming
reasonable deployment of CSP technologies occurs.'' The
administration's own budget document for 2003 states:
``Large-scale CSP technologies have been operating successfully in
the California desert for 15 years. Over this time the cost of these
systems has decreased by a factor of 3 . . . they are currently the
least expensive source of solar electricity. Recent technology
advancements . . . (have) revitalized the CSP industry and placed them
in a position to play a major role in near-term green power
opportunities, both domestically and overseas, as costs are projected
to drop into the 6 to 8 cents/kWh range.''
Given this degree of support and promise, a closeout budget request
(ca. $2 million) is unjustifiable. The funding rollercoaster for the
CSP program has damaged its ability to make long-term investments and
retain high quality staff. Laboratory staff has been reduced by 70
percent, a staggering loss of knowledge and expertise. Priceless
equipment goes unused or will be soon dismantled.
Funding of $20 million would allow the Department of Energy to
revitalize this program, maintaining an ability to validate technology
and components as well as lowering operations and maintenance costs in
a stable environment. We expect that CSP plants could generate massive
amounts of electricity for prices in the neighborhood of $.07 to $.09/
kWh by the end of the decade. (For instance, using CSP on less than
one-quarter of 1 percent of Arizona's land area could meet the State's
entire electrical needs.) Given the growth potential of this industry
and the very strong international interest in these technologies, it
seems a small price to pay.
We also note with interest the provision of the recent conference
Energy Bill that provides substantial research support for using
Concentrating Solar Power as a source of new hydrogen fuel. Solar will
undoubtedly be one of the critical cornerstone technologies of the
hydrogen economy, giving us the ability to produce zero-emissions motor
fuels when and where we want them. Concentrating Solar Power offers two
unique opportunities in this regard; conventional electrolysis of water
to generate hydrogen, and, unique to solar, inexpensive thermochemical
processes that use a direct catalytic conversion.
SOLAR HEATING AND LIGHTING/ZERO ENERGY BUILDINGS
SEIA also strongly supports the Solar Buildings projects, including
the visionary Zero Energy Buildings Program. The multi-year goal of ZEB
is to allow widespread adoption of zero energy residences by 2010 and
commercial buildings by 2015. This would slow and eventually eliminate
new buildings' consumption of our finite energy sources. Builders
around the country are increasingly developing new construction
techniques and materials, and including solar technologies which will
achieve zero finite fuel source energy consumption. For these programs
we request $8 million in funding, and we support the administration's
attempts to move this program into its logical niche in the Interior
appropriations budget, where partnerships with DOE's Buildings program
could make the most of relevant equipment and expertise. A different
program, formerly filed under the ``solar buildings'' heading, is Solar
Heating and Lighting. Solar water heating technologies are utilized
around the world in quantities far exceeding those in the United
States. Such systems can significantly reduce electricity and natural
gas consumption. Solar water heating technologies are already
ubiquitous in many other countries, thereby saving other energy sources
for higher value purposes.
Within this program, emphasis is placed on reducing the cost of
solar water heating by using lightweight polymer materials to replace
the heavy copper and glass materials in today's collectors. The goal is
to complete R&D on new polymers and manufacturing processes to reduce
the cost of solar water heating to 4 cents/kWh by the end of 2004. We
recommend that this program be funded explicitly at the $5 million
level.
FUTURE APPROPRIATIONS
While they are not yet law, we would like to draw the
subcommittee's attention to two areas of the proposed energy bill as
supported by SEIA (both H.R. 6 and the new S. 2095). Sec. 205 would
authorize substantial purchases of photovoltaics on the part of the
Federal Government, driving down costs nationwide and giving the
government a good long-term energy investment. Sec. 902 would cost-
share the installation of renewable energy systems in State or local
buildings, improving the energy independence and financial situation of
State and local governments with new clean energy devices.
CONCLUSION
Solar energy's benefits to the Nation are far too numerous to list
here comprehensively. However, we cannot mention enough that as a long-
lived source of renewable energy, solar enables us to make more of our
energy at home, rather than being forced to acquire it overseas or from
volatile fuel markets. Modular and simple to install, it can provide
quick answers to grid congestion or supply inadequacy, while
sidestepping environmental and NIMBY issues. The high coincidence of
solar panels' peak output with daily peak demand makes them an
attractive solution for load pockets or seasonal demand spikes,
avoiding the dirtiest and least efficient conventional generators.
Increased investment in solar also ties us more closely to a source
of energy that can be used anywhere in the Nation, and which becomes
less expensive, not more, every single year. These are nontrivial
considerations when the Chairman of DuPont recently declared that high
natural gas costs will prompt the company to shift its ``center of
gravity'' overseas, and when the Conference Board, the Chicago Fed, and
Federal Reserve Chairman Greenspan all publicly cite volatility and
escalation in energy costs as a major uncertainty as well as a drag on
economic growth.
Expanded use of renewable energy is also a key recommendation of
the report on mitigating the natural gas market crisis, as issued in
September 2003 by the Secretary of Energy's National Petroleum Council
(NPC). The NPC report set as its number one recommendation to ``Improve
Demand Flexibility and Efficiency'' with an emphasis on the use of
renewable fuels and technologies for power generation.
Clean energy is the most likely next tech boom, and other nations'
research and incentive spending shows that they are very much aware of
this fact. As Business Week correctly observed in their March 22 issue,
economically viable solar power could drive a transformative ``job
boom'' in the coming century, maintaining American leadership in the
world economy as did the automobile and the commercial aircraft earlier
this century. I urge the subcommittee to make the most of this historic
opportunity.
______
Prepared Statement of the American Society of Plant Biologists
The American Society of Plant Biologists (ASPB) is a non-profit
society of nearly 6,000 scientists. My name is Mary Lou Guerinot,
President of ASPB and Professor at Dartmouth College. ASPB urges the
subcommittee to support the fiscal year 2005 budget request of the
Department of Energy of $228,422,000 for the Chemical Sciences,
Geosciences and Biosciences Division of the Office of Basic Energy
Sciences. This represents an increase of $8.8 million or 4 percent.
The Biosciences program within the Chemical Sciences, Geosciences
and Biosciences Division supports fundamental research needed to
develop future biotechnologies related to energy. The supported
research focuses on the biological mechanisms occurring in plants and
microorganisms.
Plants and microbes fit readily into the energy context by virtue
of serving as renewable resources for fuel and other fossil resource
substitutes, as vehicles to restore previously disrupted environmental
sites, and as potential components of industrial processes to produce
new products and chemicals in an environmentally benign manner.
The Biosciences program is devoted to the fundamental science
underlying the use of biological systems to produce and conserve
energy.
Biosciences research on plants and microbes opens the opportunity
to synthesize an almost limitless variety of energy-rich organic
compounds and polymers. DOE's biosciences fundamental research could
lead to higher quality plant products, more environmentally benign
products and a reduction in the increasing demand for imported
petroleum.
The DOE Office of Science, Office of Basic Energy Sciences'
Division of Chemical Sciences, Geosciences and Biosciences is a
competitive grants program in which awards are made based on merit. The
Division and its Biosciences program select the best research proposals
as determined in a process of peer review. Leading researchers at
universities throughout the Nation are funded by the Biosciences
program.
The Biosciences program currently supports research in the
following areas:
Plant Science
--Structure and function of the plant cell wall (cellulose, lignin,
hemicellulose, and protein)
--Biophysical and biochemical mechanisms of photosynthesis
--Plant primary and secondary metabolism
--Genetic and biochemical mechanisms of plant growth and development
--Bioenergetics, ion uptake, and other membrane-related phenomena
--Arabidopsis genome sequencing
--Functional plant genomics
Fermentation Microbiology
--Bioenergetics and metabolic properties of anaerobic microbes
--Degradation of lignin, cellulose, and hemicellulose
--Biochemistry, genetics, and physiology of microbes that metabolize
one and two carbon compounds
--Mechanisms of plant symbiotic and pathogenic interactions
--Functional microbial genomics
Extremophilic Organisms
--Biochemistry, genetics and physiology of hyperthermophilic microbes
--Mechanisms of life under extreme conditions, temperature, salt, pH,
etc.
--Metabolism of inorganic compounds
Biomaterials and Biocatalysis
--Biosynthesis of novel materials
--Catalytic antibodies
--Structural and kinetic characterization of energy-related enzymes
--Bioadhesion
The Biosciences program has sponsored many leading research
efforts. For example, Biosciences program grant support led to a
breakthrough in cellulose biosynthesis research. Plant cell walls are
the major energy component of renewable biological resources. Cellulose
is the major constituent of the plant cell wall and represents the most
abundant biopolymer on earth.
Dr. R. Malcolm Brown, Jr. and colleagues at the University of Texas
at Austin gave the first experimental confirmation of an important
structure involved in cellulose biosynthesis. This work featured a
combination of molecular biology and immunocytochemistry techniques.
This research provides an exciting springboard for future applications
in the efficient design of specific complex carbohydrates and other
renewable carbon resources.
As another example, research sponsored earlier by the Biosciences
program led to new findings on the capture of energy from
photosynthesis. This research led to the presentation to Biosciences-
program-grantee Dr. Paul Boyer of the shared award of the 1997 Nobel
Prize in Chemistry (biochemistry). Photosynthesis is nature's way of
utilizing sunlight to produce chemical energy and to bring carbon
dioxide into biological organisms. Increased knowledge in this area
could lead to a better understanding of how to manage carbon dioxide in
the atmosphere. Further research in this area could also contribute to
development of alternative energy sources.
At the latter part of the 19th Century, people throughout the world
were dependent upon plants and other contemporaneous biological sources
for the production of organic materials. Plants and animals provided
the only sources of fibers, coatings, lubricants, solvents, dyes,
waxes, fillers, insulation, fragrances, detergents, sizing, wood,
paper, rubber and many other types of materials. In 1930, fully 30
percent of industrial organic chemicals were still derived from plants.
The discovery of extensive petroleum reserves and advances in
chemistry and petroleum engineering resulted in a major shift to
reliance on fossil sources of organic feedstocks such as petroleum.
These developments also led to the development of petroleum-based
materials, such as inexpensive plastics, with properties that could not
be duplicated at the time by abundantly available natural materials.
Advances in modern plant research made possible by support from the
Biosciences program can result in a shift toward use of feedstocks from
domestically grown plants for chemical products. Plant-produced
products can provide the chemical industry with much greater diversity
than is available from the comparatively limited structures found in
crude oil.
Knowledge gained from Biosciences-supported research is leading to
enhanced plants that will provide the feedstocks for new types of
polyurethane, new biodegradable lubricants and superior quality nylon
having stronger and more flexible fibers. The United States produces
nylon, polyurethane and other plastics to supply multi-billion dollar
markets. Genetically modified crop production of nylon alone could
create over $2 billion in new income for America's growers.
Plants are a major source of renewable and alternative fuels in the
United States. Greater knowledge of the basic biology of plants will
lead to further economies in domestic production of renewable fuels.
The science community deeply appreciates the continued strong
support of the subcommittee for innovative research on plants and
microbes sponsored by the Chemical Sciences, Geosciences and
Biosciences Division.
______
Prepared Statement of Southeastern Federal Power Customers, Inc.
Mr. Chairman and members of the subcommittee, on behalf of the
Southeastern Federal Power Customers (``SeFPC'' or ``Customers''), I am
pleased to provide testimony in reference to the administration's
fiscal year 2005 budget request for the Department of Energy and
related Federal Power Marketing Administrations (``PMAs''). My
testimony will focus primarily on the budget request for the
Southeastern Power Administration (``SEPA''). Among other issues, we
wish to emphasize that the proposed changes in SEPA's Puchased Power
and Wheeling (``PP&W'') budget would have a negative impact on Federal
preference power customers throughout the Southeast.
SEPA purchases, transmits, and markets the power generated at
Federal reservoirs to municipal systems, rural electric cooperatives,
and other wholesale customers throughout the Southeast. The SeFPC has
enjoyed a long and successful relationship with SEPA that has greatly
benefited the approximately 5.8 million customers that are SeFPC
members. As the subcommittee is aware SEPA markets the energy and
capacity that is generated from the Federal reservoir projects in the
Southeast. The SeFPC represents some 238 rural cooperatives and
municipally owned electric systems in the States of Alabama, Georgia,
Mississippi, Kentucky, North Carolina, South Carolina, Florida,
Virginia, and Illinois, which purchase power from SEPA. In some cases,
SEPA supplies as much as 25 percent of the power and 10 percent of the
energy needs of SeFPC customers.
ADMINISTRATION'S PROPOSAL TO ZERO OUT PURCHASED POWER AND WHEELING
The administration has proposed the elimination of all Federal
funding for PP&W by the end of 2004. The President's proposal would
reduce PP&W funding for SEPA by 100 percent in the upcoming fiscal
year, from the current level of $34.5 million to the proposed level of
$0. This proposal is very troubling to the SeFPC. The failure to fund
these important programs under SEPA's jurisdiction could have dire
consequences for the Federal power program in the Southeast and Federal
preference power generally.
If the President's proposal becomes law, the power supply for the
not-for-profit distributors and their customers throughout the
Southeast will be severely disrupted. SEPA's customers also will likely
lose the benefits of long-term contractual arrangements for
transmission and purchased power. Because SEPA does not own its own
transmission lines, the loss of PP&W appropriations will force us to
arrange our own transmission services, including delivery services from
SEPA projects. Also, elimination of SEPA's purchased power funds will
force us to buy our power from sources other than SEPA at higher
prices, which will be passed directly to our customers.
PROPOSAL WOULD YIELD NO COST SAVINGS FOR FEDERAL GOVERNMENT
It is important to note that the President's proposal would yield
no cost savings for the Federal Government. The use of PP&W revenues is
a discretionary function with no budgetary impact. PP&W funds are
repaid annually by preference customers. Moreover, if PP&W funds are
eliminated, SEPA's annual return to the U.S. Treasury of roughly $155
million would likely be reduced significantly.
Thank you in advance for considering our comments on the
President's proposed fiscal year 2005 budget for SEPA.
______
Prepared Statement of the American Public Power Association
The American Public Power Association (APPA) is the national
service organization representing the interests of over 2,000 municipal
and other State and locally owned utilities throughout the United
States (all but Hawaii). Collectively, public power utilities deliver
electricity to one of every seven electric consumers (about 40 million
people), serving some of the Nation's largest cities. However, the vast
majority of APPA's members serve communities with populations of 10,000
people or less.
We appreciate the opportunity to submit this statement outlining
our fiscal year 2005 funding priorities within the Energy and Water
Development Subcommittee's jurisdiction.
RENEWABLE ENERGY PRODUCTION INCENTIVE PROGRAM (REPI)
The Department of Energy's REPI program was created in 1992's
Energy Policy Act (EPAct) as a counterpart to the renewable energy
production tax credits made available to for-profit utilities. EPAct
authorizes the Department of Energy (DOE) to make direct payments to
not-for-profit public power systems and rural electric cooperatives at
the rate of 1.5 cents per kWh (now closer to 1.8 cents when adjusted
for inflation) from electricity generated from solar, wind, geothermal
and biomass projects. According to DOE sources, in order to fully fund
all past and current REPI applicants, $60 million would be needed for
fiscal year 2005. Despite the demonstrated need, however, DOE has again
asked for only $4 million for fiscal year 2005, citing budgetary
constraints.
Approximately 25 percent of electric utility customers are served
by not-for-profit public power systems and rural electric cooperatives.
Fully funding REPI is an issue of comparability for the communities
served by these systems. For example, in 2000, for-profit utilities and
private developers received about $58 million in renewable energy tax
credits for wind power alone. The same year, REPI subscribers received
only $3.99 million for renewable energy projects of all types. While
APPA supports increasing renewable energy use throughout the utility
sector, our member utilities simply must receive comparable federally
sanctioned incentives to help in that effort.
We believe Congress was committed over a decade ago to removing
economic barriers to enable all communities to benefit from the
production of more renewable and clean energy. We also believe that
Congress is equally committed today--not only to producing more
renewable energy, but also to diversifying America's portfolio of
fuels, decreasing our reliance on foreign sources of energy, and
reducing greenhouse gas emissions. In fact, under a fully funded REPI
program, close to 60 million metric tons of carbon equivalent could be
reduced through the development of existing landfills into landfill-
gas-to-energy projects. In order to ensure that these efforts and other
renewable energy goals are achieved throughout the electric utility
industry, Congress must provide an increase for REPI.
RENEWABLE ENERGY PROGRAMS
As is demonstrated by our strong support for REPI, APPA believes
that investing in energy efficiency and renewable energy programs is
critical. We urge the subcommittee to support adequate funding to
ensure that renewable energy usage continues to increase as part of the
portfolio of fuel options available to our Nation's electric utilities.
FEDERAL POWER MARKETING ADMINISTRATIONS (PMA'S)
Purchase Power and Wheeling
We urge the subcommittee to authorize appropriate levels for use of
receipts so that the Western Area Power Administration (WAPA), the
Southeastern Power Administration (SEPA) and the Southwestern Power
Administration (SWPA) can continue to purchase and wheel electric power
to their municipal and rural electric cooperative customers.
The fiscal year 2005 DOE budget proposes to eliminate the ability
of WAPA, SEPA, and SWPA to use receipts--which do not score in the
Federal budget process--to provide these services to their customers.
Although appropriations are no longer needed to initiate the purchase
power and wheeling (PP&W) process, the subcommittee continues to
establish ceilings on the use of receipts for this important function.
The PP&W program is important because hydroelectric generation and
customer use are rarely in exact balance--both vary from hour-to-hour
and day-to-day. The PMA's often make purchases in the spot market to
``firm'' the resource when generation is less than the amount
contracted for delivery. Additionally, in low-water years, the PMA's
often purchase additional power to fulfill their contracts with
customers. The PMA's then must negotiate to transmit this power to
their customer--often over non-Federal transmission lines (wheeling is
the charge that the PMA's pay to move electricity over a non-Federal
transmission line). For individual PMA customers--many of whom are the
distribution utility of very small towns--to be forced to perform these
purchase power and wheeling functions would be extremely inefficient,
and would almost certainly result in rate increases for the retail
customers of these small utilities.
The PP&W arrangement is effective, has no impact on the Federal
budget, and is supported by the PMA customers who pay the costs.
Therefore, we request that the subcommittee authorize the use of
receipts in fiscal year 2005 as follows:
--Western Area Power Administration (WAPA).--$227.6 million
authorization needed in the fiscal year 2005 bill.
--Southeastern Power Administration (SEPA).--$32.7 million
authorization needed in the fiscal year 2005 bill.
--Southwestern Power Administration (SWPA).--$2.9 million
authorization needed in the fiscal year 2005 bill.
Security Costs
We urge the subcommittee to reaffirm the Federal Government's
responsibility to pay the costs of increased security measures at
Federal, multi-purpose facilities and delivery systems and include
language to ensure that such costs are non-reimbursable.
Following the September 11, 2001 attacks, the U.S. Bureau of
Reclamation moved aggressively to strengthen security measures at
Federal dams throughout the West, including such facilities as Hoover,
Grand Coulee and Glen Canyon dams. These multipurpose facilities
provide important flood control, water storage for irrigation,
municipal and industrial uses, power generation, recreation and
environmental mitigation benefits, and are a linchpin of the regional
economy.
To date, funds appropriated in fiscal year 2003 and fiscal year
2004 for anti-terrorism/site security measures at Bureau of Reclamation
facilities have been treated as non-reimbursable pursuant to an
administrative determination. This decision found that counter-
terrorism protections are not considered normal operation and
maintenance activities and that the national security interests
justifies making the expenditures a Federal responsibility.
This determination is also consistent with how similar costs were
treated in the aftermath of the attacks on Pearl Harbor in World War
II. To ensure that the costs of increased security at Federal
facilities continue to be treated as a non-reimbursable Federal
expenditure, we request that you include the following language in the
fiscal year 2005 Energy and Water Appropriations bill:
``For fiscal year 2005 and each fiscal year thereafter, the
increased costs of ensuring security of Bureau of Reclamation and Corps
of Engineers dams and the Federal power marketing administrations in
the aftermath of the events of September 11, 2001, shall be non-
reimbursable and provided through appropriated funds.''
Animas-La Plata
The Colorado Ute Settlement Act Amendments of 2000 (Title III,
Section 301(b)(10), Public Law 106-554, December 21, 2000) authorized
development of the Animas-La Plata Project to satisfy water right
claims of the Southern Ute and Ute Mountain Tribes in southwest
Colorado (known collectively as the ``Colorado Ute Indian Tribes.'')
The project requires construction of a reservoir, pumping plant and
appurtenant facilities to provide water supply and delivery of
municipal and industrial water and other benefits to the Tribes.
In order to provide power from the Colorado River Storage Project
(CRSP) to the Durango Pumping Plant, transmission facilities will need
to be constructed, operated and maintained by the Western Area Power
Administration. Because these transmission facilities are associated
with the satisfaction of the Tribes' water rights claims, all amounts
expended for their construction, operation and maintenance should be
considered non-reimbursable and non-returnable. If Congress does not
clarify that these costs are non-reimbursable and non-returnable, CRSP
power customers run the risk that the costs of the transmission
facilities and services will be shifted to them, despite the fact that
they receive no benefit from them.
WAPA will be responsible for the construction, operation and
maintenance of these transmission facilities, and requires additional
appropriations in the amount of $10,000,000 in fiscal year 2005 to meet
the construction timetable established by the Bureau of Reclamation,
the project manager. WAPA, the Bureau of Reclamation, the Colorado
River Energy Distributors Association, the water users, the Colorado
Ute Indian Tribes and APPA all support the inclusion of the following
language in the fiscal year 2005 Energy and Water Development
Appropriations bill:
``For carrying out the functions authorized by title III, section
302(a)(1)(E) of the Act of August 4, 1977 (42 U.S.C. 7152), and other
related activities including conservation and renewable resources
programs as authorized, including official reception and representation
expenses in an amount not to exceed $1,500, $183,100,000 to remain
available until expended, of which $170,756,000 shall be derived from
the Department of the Interior Reclamation Fund: Provided, That all
authorities and future contributions described in Section 402,
subparagraph (b)(3)(B) of the Reclamation Projects Authorization and
Adjustment Act of 1992 previously assigned to the Secretary of Energy,
Western Area Power Administration, shall be transferred to the
Secretary of the Interior, Bureau of Reclamation: Provided further,
That of the amount herein appropriated, $10,000,000 shall be available
until expended on a nonreimbursable basis to the Western Area Power
Administration to design, construct, operate and maintain transmission
facilities and services for the Animas-La Plata Project as authorized
by sections 301(b)(10) of Public Law 106-554.''
STORAGE FOR HIGH-LEVEL NUCLEAR WASTE
Since 1982, the Nation's electricity customers have contributed $22
billion to the Nuclear Waste Fund to finance centralized Federal
management of spent nuclear fuel used for commercial purposes. We
therefore support the administration's efforts to finalize the location
of a permanent storage site at Yucca Mountain, Nevada.
The President requested $880 million for fiscal year 2005 for the
nuclear waste repository at Yucca Mountain. While we support the
President's budget request of $880 million, if legislation is not
enacted to take $749 million of the requested funds ``off-budget'' as
the administration assumes, we hope that resources are available to the
subcommittee to adequately fund Yucca, but not at the expense of other
valuable programs, such as the Renewable Energy Production Incentive
and other programs mentioned in this statement.
ADVANCED HYDROPOWER TURBINE PROGRAM
APPA supports the administration's budget request of $6 million for
the Advanced Hydropower Turbine Program for fiscal year 2005. This
program is a joint industry-government cost-share effort to develop a
hydroelectric turbine that will protect fish and other aquatic habitats
while continuing to allow for the production of emission-free
hydroelectric power.
During the next 15 years, 220 hydroelectric projects will seek new
licenses from the Federal Energy Regulatory Commission (FERC). Publicly
owned projects constitute 50 percent of the total capacity that will be
up for renewal. Many of these projects were originally licensed over 50
years ago. Newly imposed licensing conditions can cost hydro project
owners 10 to 15 percent of power generation. A new, improved turbine
could help assure that any environmental conditions imposed at
relicensing in the form of new conditioning, fish passages or reduced
flows are not accomplished at the expense of emission-free, renewable
energy production. This is particularly important given the
increasingly competitive market in which electric utilities operate
today. Flow levels will affect the economics of each of these projects
and many will be unable to compete if the current trend toward flow
reduction continues.
FEDERAL ENERGY REGULATORY COMMISSION (FERC)
The Federal Energy Regulatory Commission (FERC) has requested $210
million for fiscal year 2005 for its overall operations. APPA supports
this request. The FERC is charged with regulating certain interstate
aspects of the natural gas, oil pipeline, hydropower, and electric
utility industries. Such regulation includes issuing licenses and
certificates for construction of facilities, approving rates,
inspecting dams, implementing compliance and enforcement activities,
and providing other services to regulated businesses. These businesses
pay fees and charges that cover most of the cost of the government's
operations.
NAVAJO ELECTRIFICATION DEMONSTRATION PROGRAM
APPA supports full funding for the Navajo Electrification
Demonstration Program at its $15 million authorized funding level for
fiscal year 2005 and for each succeeding year of its authorization
(through 2006). The purpose of the program is to provide electric power
to the estimated 18,000 occupied structures in the Navajo Nation that
lack electric power.
The Navajo Nation is served by the Navajo Tribal Utility Authority
(NTUA), an APPA member. NTUA provides electric, natural gas, water,
wastewater treatment, and photovoltaic services throughout the Navajo
Indian Reservations in the States of Arizona, New Mexico and Utah.
Fully funding the Navajo Electrification Demonstration Program will
significantly improve the quality of life for the people of the Navajo
Nation.
NATIONAL CLIMATE CHANGE TECHNOLOGY INITIATIVE
APPA supports the administration's efforts to promote greenhouse
gas reductions through voluntary programs and investments in new
technologies. We therefore support DOE's request of $3 million for
fiscal year 2005 to spur innovation of technologies that will reduce,
avoid, or capture greenhouse gas emissions.
______
Prepared Statement of the Biomass Energy Research Association
This testimony pertains to the fiscal year 2005 appropriation for
biomass research, development, and deployment (RD&D) conducted by the
Department of Energy's (DOE) Office of Energy Efficiency and Renewable
Energy (EERE). Separate statements will be submitted in support of
biomass RD&D performed under the Interior and Related Agencies Bill by
EERE, and on forest biomass production research performed by the U.S.
Department of Agriculture Forest Service (USDAFS).
BERA recommends appropriations of $92,500,000 for biomass RD&D in
fiscal year 2005 under EERE's Biomass and Biorefinery Systems program
and Hydrogen Technology program as follows:
--$2,000,000 for Feedstock Infrastructure R&D.
--$26,000,000 for Platforms R&D: Thermochemical Conversion
($13,000,000) and Bioconversion ($13,000,000).
--$19,000,000 for Utilization of Platform Outputs, Integration of
Biorefinery Technologies at PDU and pilot scales:
Thermochemical Conversion ($9,000,000) and Bioconversion
($10,000,000).
--$39,000,000 for State-Industry Partnerships: Biorefinery Systems
Development ($34,000,000 demonstration facilities) and State &
Regional Partnerships (SRP, formerly the Regional Biomass
Energy Program, RBEP) ($5,000,000).
--$6,500,000 for biomass-related projects under Hydrogen Technology.
On behalf of BERA's members, I would like to thank you, Mr.
Chairman, for the opportunity to present the recommendations of BERA's
Board of Directors for the high-priority projects and programs that we
strongly urge be continued or started. BERA is a non-profit association
based in Washington, DC. It was founded in 1982 by researchers and
private organizations that are conducting biomass research. Our
objectives are to promote education and research on the production of
energy and fuels from virgin and waste biomass that can be economically
utilized by the public, and to serve as a source of information on
biomass RD&D policies and programs. BERA does not solicit or accept
Federal funding for its efforts.
The level of earmarks in the last few years has resulted in
premature reductions of scheduled programs by EERE. BERA respectfully
asks the subcommittee to carefully consider the impacts of all earmarks
on EERE's RD&D. If they are for projects that are not included in DOE's
formal funding request, BERA urges that they be add-ons to the baseline
funds rather than deductions. In fiscal year 2004, about 35 percent of
the appropriation for EERE's RD&D is provided as earmarked funds.
EERE's planned objectives are therefore extremely difficult or
impossible to achieve because the appropriation provided for fiscal
year 2004 is only about 7.5 percent more than the baseline funding
requested.
The original goal of the Biomass and Bioproducts Initiative (BBI)
created as a result of ``The Biomass Research and Development Act of
2000'' and Title IX of the Farm Bill was to triple the usage of
bioenergy and biobased products. Congress has provided annual funding
for the BBI since fiscal year 2000. A strategic plan was developed by
the multi-agency Biomass Research and Development Board (BRDB), co-
chaired by the Secretaries of Energy and Agriculture, to achieve this
goal. Its achievement is necessary because of environmental and energy
security and supply issues, and our increasing dependence on imported
oil. We must determine whether practical biomass systems capable of
displacing much larger amounts of fossil fuels can be developed. For
example, biomass energy consumption in 2002 was about 1.66 million
barrels of oil equivalent (BOE) per day. BERA strongly urges that the
BBI be continued in fiscal year 2005 at the funding level recommended
by BERA for the cost-shared demonstration projects shown in the table
on page 3. The highest priority should be given to this program
component.
PROGRAM INTEGRATION, COORDINATION, AND MANAGEMENT
For several years, BERA has urged that all biomass-related research
funded by DOE should be coordinated and managed at DOE Headquarters so
that the program managers are heavily involved in this activity. We are
pleased to note that this process, which began in fiscal year 2002, has
continued in fiscal year 2004. BERA congratulates DOE on the progress
made in restructuring the program and its management. BERA also
congratulates DOE and USDA for the cooperation and joint coordination
of the programs of each department to increase the usage of
agricultural and forestry biomass for the production of much larger
amounts of affordable fuels, electricity, and biomass-derived products
than have been realized in the past. These efforts are expected to help
facilitate the transition of waste and virgin biomass in the United
States into major sources of renewable energy, fuels, and chemicals.
However, without full incorporation of the BBI into DOE's and
USDA's biomass research programs, the time table for this transition
will be stretched out for several decades and possibly never happen
except to a very limited extent for niche markets. Large, strategically
located, energy plantations are ultimately envisaged in which waste
biomass acquisition and virgin biomass production systems are
integrated with conversion systems and operated as analogs of petroleum
refineries to afford flexible slates of multiple products from multiple
feedstocks. Unfortunately, relatively large amounts of capital and
inducements are required to convince the private sector to get involved
in developing even modest size projects in the field. So to help
implement this essential program, BERA includes the BBI as a line-item
in its annual testimony.
BERA also continues to recommend that implementation of the BBI
should include identification of each Federal agency that provides
funding related to biomass energy development and each agency's
programs and expenditures, as is done by the DOE and USDA today. This
is an on-going activity that should be expanded to include other
agencies and departments to help fine-tune the critical pathways to
program goals. Continuous analysis of the information compiled should
enable the coordination of all federally funded biomass energy programs
through the BRDB to facilitate new starts focused on high priority
targets, and help to avoid duplication of efforts, unnecessary
expenditures, and continuation of projects that have been completed or
that do not target program goals. Full implementation of the BBI will
enhance the value of the Federal expenditures on biomass research to
the country in many different ways.
BERA RECOMMENDATIONS
BERA's recommendations consist of a balanced program of mission-
oriented RD&D on conversion research and technology transfer to the
private sector. Advanced conversion processes and power generation
technologies, alternative liquid transportation fuels, and hydrogen-
from-biomass processes are emphasized. Biomass production RD&D for
energy uses is expected to be done by the USDA.
BERA continues to recommend that at least 50 percent of the Federal
funds appropriated for biomass research, excluding the funds for scale-
up projects, are used to sustain a national biomass science and
technology base via sub-contracts for industry and universities. While
it is desirable for the national laboratories to coordinate this
research, increased support for U.S. scientists and engineers in
industry, academe, and research institutes that are unable to fund
biomass research will encourage commercialization of emerging
technologies and serious consideration of new ideas. It will also help
to expand the professional development and expertise of researchers
committed to the advancement of biomass technologies.
Although progress has been made, EERE has terminated research in
several critical thermochemical and microbial conversion areas. BERA
believes that a balanced program of high-priority research should be
sustained and protected, so we continue to recommend both a diversified
portfolio of research and an appropriate amount of funding for scale-up
without diminishing either EERE's R&D or scale-up programs. BERA's
specific dollar allocations are listed in the table on page 3.
Additional commentary on each program area is presented on pages 3, 4
and 5. Other mission-oriented biomass RD&D programs are funded through
EERE's Industrial Technologies Program by the Interior and Related
Agencies Bill. DOE's basic research on biomass energy outside of EERE
by the Office of Science, which supports academic research, should be
designed to complement EERE's mission-oriented biomass RD&D and the
BBI.
ALLOCATION OF APPROPRIATIONS RECOMMENDED BY BERA FOR FISCAL YEAR 2005
BERA recommends that the appropriations for biomass RD&D in fiscal
year 2005 be allocated as shown in the accompanying table. For fiscal
year 2005, EERE has again incorporated revisions in nomenclature and
has zeroed-out, consolidated, or moved some programs within EERE. So
our recommendations are generally listed in the same order as the
funding requests under EERE's headings and program area titles except
several program areas are included that are either new or that BERA
recommends be restored to maintain a balanced program. Note that the
recommended budgets for the demonstration projects do not include
industry cost-sharing, which is required to be a minimum of 50 percent
of each project cost. BERA recommends that funds for the BBI be used
for these scale-up projects after evaluating the projected contribution
of each project to the BBI's goals. New projects should not be started
until this is done.
----------------------------------------------------------------------------------------------------------------
Recommended Budget for
Office of Energy Efficiency and Renewable Program Area -------------------------------
Energy Research Scale-Up
----------------------------------------------------------------------------------------------------------------
Biomass/Biorefinery Systems:
Feedstock Infrastructure.................. Harvesting Equipment/Storage/ $2,000,000 ..............
Logistics.
Platforms R&D............................. Thermochemical Conversion:
Advanced Combustion & Controls 2,000,000 ..............
Oxygenates from Syngas........ 4,000,000 ..............
Liquid Fuels from Pyrolysis... 4,000,000 ..............
Chemicals from Syngas & 3,000,000 ..............
Pyrolysis.
Bioconversion:
Pretreatment and Hydrolysis... 4,000,000 ..............
Organisms and Enzymes......... 4,000,000 ..............
Fermentation (Ethanol)........ 4,000,000 ..............
Fermentation (Methane)........ 1,000,000 ..............
Utilization of Platform Outputs............... Integration of Biorefinery
Technologies:
Thermochemical Conversion:
Small Modular Power .............. $2,000,000
Generation \2\.
Biomass Cofiring Power .............. 2,000,000
Generation \2\.
Oxygenates and Mixed .............. 5,000,000
Alcohols \2\.
Bioconversion:
Ethanol from Cellulosics \2\ .............. 5,000,000
Value-Added Products \2\.... .............. 5,000,000
State-Industry Partnerships................... Biorefinery Systems Development:
\3\
Design Optimization, \3\ 1,000,000 ..............
Efficiencies.
Product Slates, Economics, \3\ 1,000,000 ..............
Markets.
Siting, Acquisition, \3\ 2,000,000 \3\ 20,000,000
Construction.
Operations.................... .............. \3\ 10,000,000
State & Regional Partnerships... 0 5,000,000
-------------------------------
Subtotal................................ ................................ 32,000,000 54,000,000
=================================================================
Hydrogen Technology \1\....................... Thermal Processes (Reforming)... 500,000 1,000,000
Photolytic Processes (Algae).... 1,000,000 ..............
Innovative Conversion Processes. 4,000,000 0
-------------------------------
Subtotal................................ ................................ 5,500,000 1,000,000
-------------------------------
Totals.................................. ................................ 37,500,000 55,000,000
===============================
Grand Total............................. ................................ .............. 92,500,000
----------------------------------------------------------------------------------------------------------------
\1\ BERA's recommendations pertain only to the biomass-based portion of Hydrogen Technology.
\2\ BERA's recommendations should be used for scale-up at the PDU and pilot-plant scales, preferably with
industry cost-sharing.
\3\ All demonstration projects should be cost-shared with industry and state participation.
Feedstock Infrastructure, Harvesting Equipment, Storage, and
Logistics.--DOE terminated biomass production research a few years ago
and is concentrating on infrastructure development, including novel
systems for collecting agricultural residues, the analysis of
sustainable feedstock systems, and regional and national cost-supply
relationships. In fiscal year 2005, EERE plans to continue work on the
harvesting and logistics roadmap, the sustainability roadmap, and
policy considerations, and is expected to include work on one-pass
harvesting systems for wheat straw and corn stover, innovative
densification and storage systems, and regional modeling that
integrates economic and environmental considerations. BERA recommends
that EERE continues to develop the feedstock infrastructure, while the
USDA Forest Service initiates and continues RD&D on woody biomass for
energy.
Platforms R&D, Thermochemical Conversion.--Continuation of
thermochemical conversion R&D to develop advanced biomass combustion
and gasification methods could have environmental and economic benefits
that can lead to significant growth in power generation from waste
biomass and combined energy recovery-disposal methods for certain kinds
of high-moisture waste biomass such as biosolids (municipal sewage),
and for MSW, agricultural residues, and wood wastes. Most of this
research has been phased out by EERE. Completion of the development of
medium-Btu biomass gasification technologies is also an essential
component for the production of fuel gases including synthesis gas
(syngas) and hydrogen, power, and chemicals. BERA recommends
restoration of this R&D with the goal of developing the next generation
of advanced combustion and gasification processes for power generation.
Several thermochemical conversion methods are available for
liquefaction of waste and virgin biomass feedstocks to afford storable
liquid fuels and chemicals. Included among them are the catalytic
conversion of syngas from biomass to liquid products such as ethanol,
mixed alcohols, and other oxygenates; the catalytic hydrogenation of
biomass and biomass derivatives such as natural oils and waste
triglycerides for the direct production high-cetane diesel fuels; and
biomass liquefaction under supercritical conditions of pressure and/or
temperature in aqueous media. These technologies offer a wide range of
options for liquefaction of all categories of waste and virgin biomass.
Note also that syngas production from biomass is established
technology, and that several processes are commercially available. For
several years, BERA has recommended that EERE support thermochemical
liquefaction processes. This should have been a key component of EERE's
research, but has been a minimally funded R&D effort, particularly when
compared with the effort expended on other conversion technologies. It
is noteworthy that EERE has significantly increased this activity for
fiscal year 2005.
The pyrolysis of biomass, or its thermal decomposition in the
absence of oxygen, yields a large number of gaseous, liquid, and solid
products. Hardwood feedstocks were used commercially until the 1930's
to manufacture fuel gases, solvents, chemicals, fuel oils, and
charcoal. Because of the continuously increasing prices of natural gas
and crude oils, a few small-scale commercial biomass pyrolysis systems
have recently been installed and operated under innovative conditions
that increase product flexibility to yield cost-competitive products.
BERA recommends that R&D on both waste and virgin biomass pyrolysis be
added to EERE's program to help perfect advanced processes. It is
encouraging to note that pyrolytic oils have been added to EERE's
project roster for fiscal year 2005. All of the basic data compiled at
DOE on biomass pyrolysis in the 1970's and 1980's should be reexamined
in this work.
BERA urges that thermochemical conversion R&D for both biomass
liquefaction and gasification processes be restored, expanded, and
continued and be given a higher priority by EERE.
Platforms R&D, Bioconversion.--The goal of achieving efficient
hydrolysis of low-cost cellulosic feedstocks to obtain the sugars and
of simultaneous conversion of the resulting pentoses and hexoses to
fermentation ethanol requires the use of special processes for
producing genetically engineered organisms and cellulase systems at
acceptable costs and performance on a commercial scale. Research by
industry and academe should continue to perfect these technologies for
incorporation into the overall conversion systems used for these
processes. This will ensure that the best possible skills and
technologies are brought to bear.
Methane fermentation (anaerobic digestion) is unique in that it
produces methane, the major component in natural gas, at high
concentrations in the medium-Btu product gas from a full range of
virgin and waste biomass. DOE has terminated most of this research,
which can lead to advanced waste disposal-energy recovery processes as
well as the alleviation of numerous environmental problems encountered
during waste treatment in urban communities and agricultural
facilities. This research should be restored.
Bioconversion is useful for converting a variety of biomass and
derivatives to a wide range of commodity or high-value organic
chemicals and polymers. The use of selected microbial populations is in
fact the only practical route to certain types of chemicals and
polymers. An exploratory program to advance this technology is a
natural adjunct to DOE's on-going Bioconversion R&D. BERA recommends
that part of this research effort should focus on this field.
Utilization of Platform Outputs, Integration of Biorefinery
Technologies, Thermochemical Conversion and Bioconversion.--BERA
recommends that this effort utilize the best available information
produced by the Platforms R&D programs for testing, confirming, and
perfecting the conversion technologies at the PDU and pilot-plant
scales shown in the table on page 3. This will generate the information
needed to support the design, construction, and operation of
demonstration facilities under State-Industry Partnerships, Biorefinery
Systems Development (see following section).
Commentary on the value of intermediate scale process R&D is in
order. For example, several projects performed at semi-commercial plant
scales or that involved modules of commercial plants have been funded
to develop processes for converting low-cost cellulosic feedstocks to
fermentation ethanol. Unfortunately, the results of this effort have
not led to operating systems despite the excessive time and relatively
large budgets that have been provided to conduct the work. It is
apparent that although the science is feasible, the scale-up projects
have not yet been successful. But it is still important to
commercialize this technology to help reduce the cost of fermentation
ethanol. Intermediate-scale projects such as those conducted at the PDU
and pilot-plant scales can more readily focus on efficient development
of the critical information and operating data needed to overcome or
eliminate existing scale-up barriers. It is also essential that
integrated feedstock acquisition-biorefinery systems be designed and
built using this information for demonstration in the field on a
sustainable basis. The pathways to successful development of these
systems are in hand now. They should be implemented.
State-Industry Partnerships, Biorefinery Systems Development.--
Overall, this program component should focus on the ultimate objective
of sustainable operation of biorefineries integrated with biomass
acquisition systems in relatively large field demonstration facilities
(energy plantations). This effort should address siting, plant design,
financing, permitting, construction, environmental controls, waste
processing and disposal, and sustained operations; feedstock selection,
transport, storage, and delivery; all waste disposal and emissions
issues; and storage and delivery of the salable products to market.
BERA recommends that industrial partners and States be carefully
selected for participation in this cost-shared program. This work
should be given the highest priority. BERA recommends that the funds
for the BBI provided by Congress should be used for this effort. Long-
range planning is essential to ensure that each project has a high
probability of success and lays the groundwork for continued
installation of similar systems by the private sector. Since only a
minimal effort has been conducted to date in the United States on this
type of program, BERA recommends that the first demonstration facility
target the acquisition of waste and/or virgin biomass feedstocks for
conversion into electricity, liquid and gaseous fuels, and chemicals.
Existing moderate- and large-scale facilities from terminated and
continuing EERE projects, such as biomass cofiring, gasification,
liquefaction, and fermentation, should be carefully examined to
determine whether one or more are suitable for these projects. The
partnerships should be in place at the start of each demonstration
project.
State and Regional Partnerships (Formerly Regional Biomass Energy
Program).--The Regional Biomass Energy Program (RBEP) was a model
outreach program for more than 20 years. No other DOE program had the
information transfer role, capabilities, level of experience, or
widespread networks of the RBEP, nor has there been a partnership
program so closely affiliated with the highest levels of State and
regional government energy organizations. DOE has replaced the RBEP
with a new program, State and Regional Partnerships (SRP), that will
involve collaboration with States on technology transfer, research,
development, field testing, and other needed efforts to overcome market
barriers. BERA feels that RBEP can provide a strong foundation for the
SRP, and that adequate funding should be provided to sustain the new
SRP because of the history and successful track record of the RBEP.
Hydrogen Technology.--Research on the thermal reforming of biomass
and on splitting water with algae, should be continued. In addition,
innovative conversion methods such as the use of anaerobic digestion
under ambient conditions and catalytic and non-catalytic thermochemical
gasification under certain operating conditions that minimize methane
formation while maximizing hydrogen formation should be studied. These
technologies may lead to low-cost hydrogen production methods.
______
Prepared Statement of the American Museum of Natural History
ABOUT THE AMERICAN MUSEUM OF NATURAL HISTORY
The American Museum of Natural History (AMNH) is one of the
Nation's preeminent institutions for scientific research and public
education. Since its founding in 1869, the Museum has pursued its
mission to ``discover, interpret, and disseminate--through scientific
research and education--knowledge about human cultures, the natural
world, and the universe.'' It is renowned for its exhibitions and
collections of more than 32 million specimens and cultural artifacts.
With nearly 4 million annual visitors--approximately half of them
children--its audience is one of the largest and most diverse of any
museum in the country. Museum scientists conduct groundbreaking
research in fields ranging from all branches of zoology, comparative
genomics, and bioinformatics to earth, space, and environmental
sciences and biodiversity conservation. Their work forms the basis for
all the Museum's activities that seek to explain complex issues and
help people to understand the events and processes that created and
continue to shape the Earth, life and civilization on this planet, and
the universe beyond.
More than 200 Museum scientists, led by 46 curators, conduct
laboratory and collections-based research programs as well as fieldwork
and training. Scientists in five divisions (Anthropology; Earth,
Planetary, and Space Sciences; Invertebrate Zoology; Paleontology; and
Vertebrate Zoology) are sequencing DNA and creating new computational
tools to retrace the evolutionary tree, documenting changes in the
environment, making new discoveries in the fossil record, and
describing human culture in all its variety. The Museum also conducts
undergraduate, graduate, and postdoctoral training programs in
conjunction with a host of distinguished universities.
The AMNH collections are a major resource for Museum scientists as
well as for more than 250 national and international visiting
scientists each year. They often include endangered and extinct species
as well as many of the only known ``type specimens,'' or examples of
species by which all other finds are compared. Collections such as
these are historical libraries of expertly identified and documented
examples of species and artifacts, providing an irreplaceable record of
life on earth.
The Museum interprets the work of its scientists, highlights its
collections, addresses current scientific and cultural issues, and
promotes public understanding of science through its renowned permanent
and temporary exhibits as well as its comprehensive education programs.
These programs attract more than 400,000 students and teachers and more
than 5,000 teachers for professional development opportunities. The
Museum also takes its resources beyond its walls through the National
Center for Science Literacy, Education, and Technology, launched in
1997 in partnership with NASA.
SUPPORT FOR DEPARTMENT OF ENERGY SCIENCE MISSION AND GOALS
As one of the world's leading science organizations, DOE's primary
strategic goals include maintaining a world class scientific research
capability and protecting the Nation's security. Its science program
supports fundamental research in energy, matter, and the basic forces
of nature and the advanced computational tools critical to research.
The American Museum shares DOE's fundamental commitments to cutting-
edge research and technology in support of science and education.
Genomic Science
DOE's scientific leadership encompasses genomics research and
advanced sequencing technologies. With the historic completion of the
first draft of the human genome, work on the frontiers of genome
science continues as a critical element of the DOE mission, not only by
helping to protect against bio-terrorism but also by contributing to
the broad goal of developing ``a fundamental, comprehensive, and
systematic understanding of life.'' DOE focus areas include research in
energy-related biology, comparative genomics, organisms' responses to
biological and environmental cues, and experimental and computational
approaches to predictive understanding of microbes and microbial
communities. The Genomes to Life program is based on the understanding
that genomes, especially those of the simplest organisms, provide a
window into the basic mechanics of life. The program addresses energy,
environmental, and national security needs and also promises advances
in medical treatment.
The American Museum is home to a preeminent molecular research
program and is deeply engaged in genome research closely tied to DOE's
mission areas and research priorities. In the era of genomics, museum
collections have become critical baseline resources for the assessment
of genetic diversity of natural populations. Studying genomic data in a
natural history context makes it possible to more fully understand the
impacts of new discoveries in genomics and molecular biology.
Frozen Tissue Collection
The Museum offers unique research resources in support of its
molecular program. It has expanded its collections to include
biological tissues and isolated DNA preserved in a super-cold storage
facility. Because this collection preserves genetic material and gene
products from rare and endangered organisms that may become extinct
before science fully exploits their potential, it is an invaluable
research resource in many fields, including genetics, comparative
genomics, and biodefense. Capable of housing 1 million specimens, it
will be the largest super-cold tissue collection of its kind. Since it
was launched 3 years ago, 22,000 specimens not available at any other
institute or facility have already been accessioned.
Cluster Computing
DOE science programs are committed to ``providing extraordinary
tools for extraordinary science.'' The Museum, too, is a leader in
developing computational tools, as parallel computing is an essential
enabling technology for phylogenetic (evolutionary) analysis and
intensive, efficient sampling of a wide array of study organisms.
Museum scientists have constructed an in-house 700-processor computing
facility that is the fastest parallel computing cluster in an
evolutionary biology laboratory and one of the fastest installed in a
non-defense environment. Their pioneering efforts in cluster computing,
algorithm development, and evolutionary theory have been widely
recognized and commended for their broad applicability for biology as a
whole. The bioinformatics tools Museum scientists are creating will not
only help to generate evolutionary scenarios, but also will inform and
make more efficient large genome sequencing efforts. Many of the
parallel algorithms and implementations (especially cluster-based) will
be applicable in other informatics contexts such as annotation and
assembly, breakpoint analysis, and non-genomic areas of evolutionary
biology and other disciplines.
Institute of Comparative Genomics
Building on its strengths in comparative genomics, and in concert
with the scientific goals of DOE, in 2001 the Museum established an
Institute for Comparative Genomics so as to contribute its unique
resources and expertise to the Nation's genomic research enterprise.
The Institute is positioned to be one of the world's premier research
facilities for mapping the genome across a comprehensive spectrum of
life forms.
The Institute has already established a record of significant
research achievements. These include obtaining a patent for an
innovative approach to analyzing microarray data that will facilitate
improved diagnoses of diseases such as cancer and development of drugs
to treat such diseases; developing computational techniques to analyze
chromosomal sequence data; building a comprehensive database of all
known finished and incomplete genomes of microbial species; developing
effective methods of culturing difficult to culture species as well as
new methods for obtaining embryos for antibody staining; conducting
whole genome analysis of disease causing microorganisms to understand
the evolutionary changes that take place in a genome to make it more or
less virulent; and developing phylogenetic techniques to advance
understanding of bacterial genomics and the evolution of pathogenicity.
Institute scientists have also won major grants to lead international
research teams in assembling the ``tree of life.''
The Institute's research programs are complemented by an ambitious
agenda of genomics-related exhibitions, conferences, and public
education programming, including the landmark exhibition, The Genomic
Revolution in 2001. Education and afterschool programs introduce
students to genome science, and the Museum has held several
international conferences on important genomics topics: Sequencing the
Human Genome: New Frontiers in Science and Technology, in Fall 2000;
Conservation Genetics in the Age of Genomics in Spring 2001; New
Directions in Cluster Computing in June 2001; and in 2002, an
international meeting to examine current knowledge of life's history,
Assembling the Tree of Life: Science, Relevance, and Challenges. The
March 2004 symposium presents Expanding the Ark: The Emerging Science
and Practice of Invertebrate Conservation.
As it moves forward, the Institute, working in cooperation with New
York's outstanding biomedical research and educational institutions, is
focusing on molecular and microbial systematics, on constructing large
genomic databases, and on expanding our understanding of the evolution
of life on earth and the evolution of critical organismal form and
function through analysis of the genomes of selected microbes and other
non-human organisms. Development of Institute activities entails
expanding expertise in microbial systematics and the molecular
laboratory program that now trains dozens of graduate students every
year; utilizing the latest sequencing technologies; employing parallel
computing applications that allow scientists to solve combinatorially
complex problems involving large real world datasets; and developing of
K-12 curriculum materials, scientific conferences, and exhibits.
As the foregoing makes clear, the research interests and expertise
of DOE and the Museum are closely aligned in key areas pertinent to the
agency's biological and environmental research, including comparative
and microbial genomics, bioinformatics, and computational science. We
are mutually committed to the importance to humans of nonhuman
organisms' DNA sequences, to developing the computational tools to
integrate and understand data, and to modeling complex biological
systems. We seek a partnership with DOE to further these mutual goals,
advancing projects such as the following:
--New strategies for studying complex microbial communities.--
Investigations into the molecular characterization and
phylogenic analysis of genes involved in biofilm formation to
offer new insights into the formation, properties, and
evolution of microbial communities.
--New approaches to bioinformatics and algorithm development.--Using
statistical physics analogues to model NP-hard problems in
evolutionary tree construction in order ultimately to aid in
the design of novel approaches to long-standing biological
problems and generate new insights into the processes of
interest to DOE.
--New strategies for characterizing microbial communities in
nature.--Analysis of samples of uncultured microbial
communities, stored in the Museum's frozen tissue collection at
temperatures that preserve nucleic acids and proteins, to
complement field analysis, and to provide access for the
scientific community to this information through the
collection's database and informatics tools.
The Museum requests $3 million to partner with DOE and to employ
the unique capacities of the Institute of Comparative Genomics for
advancing shared research and education priorities in genomics science.
The Institute's comparative and microbial research programs support
DOE's biological and environmental research function (the BER account);
and its diverse strengths and unique resources in comparative genomics
will help to further DOE's goals for building a scientific research
capacity to enable advances and discoveries in DOE science through
world-class research. The Museum intends to support the Institute with
funds from non-Federal as well as Federal sources and proposes to use
the requested $3 million towards overall costs for the Institute's
microbial genomics research program, including equipping the molecular
laboratories to accommodate additional senior scientists, graduate and
postdoctoral trainees; upgrading instrumentation with the latest high-
throughput technology; and scientific outreach and dissemination via
website, online databases, and other means.
______
Prepared Statement of the University of Medicine and Dentistry of New
Jersey
The following is the testimony of the University of Medicine and
Dentistry of New Jersey (UMDNJ), the largest freestanding public
university of the health sciences in the Nation. The University is
located on five State-wide campuses and contains three medical schools,
and schools of dentistry, nursing, health related professions, public
health and graduate biomedical sciences. UMDNJ also comprises a
University-owned acute care hospital, three core teaching hospitals, an
integrated behavioral healthcare delivery system, and affiliations with
more than 200 health care and educational institutions State-wide.
We appreciate the opportunity to bring to your attention our
priority projects that are consistent with the biomedical research
mission of the Department of Energy. These projects are State-wide in
scope and include collaborations both within the University system and
with our affiliates.
Our first priority is the development of the Regional
Biocontainment Laboratory at UMDNJ-New Jersey Medical School in Newark.
The 2001 terrorist attacks on the United States, the release of anthrax
through the United States mail, and the proliferation of biological
weapons materials and technologies have resulted in an unprecedented
sense of urgency for greater bioterrorism preparedness. In 2003 the
NIH-National Institute for Allergy and Infectious Diseases (NIAID)
selected the Northeast BioDefense Center (NBC), a consortium of
research organizations spread across four States, as one of eight
Regional Centers of Excellence for BioDefense and Emerging Infectious
Diseases Research. Scientists at UMDNJ, along with researchers at
Rutgers University and the Public Health Research Institute, are key
partners in helping the NBC frame practical solutions to public health
threats emanating from both bioterror and emerging infectious diseases.
Following NIAID's designation of the Northeast BioDefense Center as
a Regional Center of Excellence, UMDNJ-New Jersey Medical School was
awarded almost $21 million from the NIH to build a 13,000-square-foot
regional biocontainment (Bio Safety Level-3) laboratory at the
International Center for Public Health (ICPH) in Newark, New Jersey.
NIH views the construction of the regional biocontainment laboratories
as critical components of the planned network of extramural Regional
Centers of Excellence to accelerate research on the highly dangerous
and infectious pathogens in the biodefense field.
This new BSL-3 facility augments two other existing laboratory
facilities at the ICPH and on the UMDNJ Newark campus, and once
operational, will bring the total BSL-3 space in Newark to 21,500
square feet, creating one of the largest focal points of containment
space in the country. Of the 208 scientists participating in the NBC
program, more than 50 percent work within 25 miles of Newark. The
construction of the laboratory will allow a critical mass of biodefense
scientists to be assembled in Newark, forming the heart of biodefense
and infectious disease research in the region. The strategic location
of the new laboratory is well suited to provide infrastructure support
to regional public health agencies in the event of a national
bioterrorism emergency. UMDNJ respectfully seeks $10 million in
targeted appropriations to supplement the NIAID award as the received
funds do not fully provide for the laboratory's construction.
Our second priority is the development of the Child Health
Institute of New Jersey at UMDNJ-Robert Wood Johnson Medical School
(RWJMS) in New Brunswick. As part of the State's public higher
education system, the medical school encompasses 21 basic science and
clinical departments and integrates diverse clinical programs conducted
at 34 hospital affiliates and numerous ambulatory care sites in the
region. RWJMS ranks among the top one-third of medical schools in the
Nation in terms of grant support per faculty member. It is home to The
Cancer Institute of New Jersey, the only NCI-designated comprehensive
cancer center in New Jersey; The Center for Advanced Biotechnology and
Medicine; the Environmental and Occupational Health Sciences Institute,
one of the leading environmental health programs in the country; and
the Child Health Institute of New Jersey.
The mission of the Child Health Institute is to build a
comprehensive biomedical research center focused on the health and
wellness of children. In this program, medical researchers direct
efforts towards the prevention and cure of environmental and genetic
diseases of infants and children at molecular and cellular levels.
The Child Health Institute will be the cornerstone institution of a
major research and clinical effort to understand, prevent and treat
childhood diseases. It is integral to the long-term plan for the
enhancement of research at UMDNJ-RWJMS in developmental genetics,
particularly as it relates to disorders that affect a child's
development and growth, physically and cognitively. The program will
enable the medical school to expand and strengthen basic research
efforts with clinical departments at the Robert Wood Johnson University
Hospital (RWJUH) and, in particular, those involved with the new
Bristol-Myers Squibb Children's Hospital at RWJUH, especially
obstetrics, pediatrics, neurology, surgery and psychiatry. The
construction of the Child Health Institute at RWJMS will fill a
critical gap through the expansion, by new recruitment, of a
intellectual base upon which basic molecular programs in child
development and health will build.
At the Child Health Institute, research will serve as the basis for
new treatments, therapies and cures for such devastating and
debilitating childhood syndromes as asthma, autism, diabetes, muscular
dystrophy, birth defects and neuro-developmental disorders. Research
will focus on the molecular and genetic mechanisms which direct the
development of human form, subsequent growth, and acquisition of
function. Broadly, the faculty and students will investigate disorders
that occur during the process of development to discover and study the
genes contributing to developmental disabilities and childhood
diseases; to determine how genes and the environment interact to cause
childhood diseases; and to identify the causes and possible avenues of
treatment of cognitive disorders broadly found among conditions such as
mental retardation, autism and related neurological disorders.
Research at the Child Health Institute will focus on molecular
mechanisms of early embryonic development, a natural, but vulnerable,
water-based environment. Normal child development is a water dependent
process, reflecting water quality, quantity and its ``management'' by
cells and tissues. A critical component of the research infrastructure
being developed within the Child Health Institute is an Imaging Core
Facility. Through this facility researchers will be able to better
visualize the dynamics of structures within cells and cells within
developing tissues. Understanding these dynamics is crucial to
expanding knowledge of the processes involved in embryonic and later
development.
The Child Health Institute of New Jersey builds on existing
significant strengths in genetic, environmental, and neurosciences
research within the UMDNJ-RWJMS and associated joint programs with
Rutgers University and other research institutes. For example, the
Environmental and Occupational Health Sciences Institute (EOHSI) is a
National Institute of Environmental Health Sciences (NIEHS) recognized
center of excellence which investigates environmental influences on
normal and disordered functions; The Cancer Institute of New Jersey
(CINJ), a National Cancer Institute-designated Comprehensive Cancer
Center, studies disordered cell growth; and the Center for Advanced
Biotechnology and Medicine (CABM) characterizes gene structure and
function.
The CHI will act as a magnet for additional growth in research and
healthcare program development in New Jersey. The Institute will
encompass 150,000 gross square feet and will house more than 40
research laboratories and associated support facilities. Fourteen
senior faculty will direct teams of M.D. and Ph.D. researchers,
visiting scientists, postdoctoral fellows, graduate students and
technicians, for a full complement of some 130 employees.
Construction costs for the Institute are estimated to be
approximately $72 million; approximately half of this figure is
generally associated with local employment. At maturity, the Institute
is expected to attract $7 to $9 million of new research funding
annually. The Institute's total annual operating budget is projected to
be $10 to $12 million, with total economic impact on the New Brunswick
area projected to be many times this amount.
The Child Health Institute has assembled more than $40 million to
fund its building and programs through a strong partnership among
private, corporate and government entities. The support of the Congress
has resulted in more than $6 million in directed appropriations for the
CHI over the past 4 years, including appropriations from this committee
in fiscal years 2001 and 2002.
We respectfully seek $2 million to complement support already
received in Federal participation to further advance the development of
the Child Health Institute of New Jersey. Requested funding will be
utilized for the purchase of analytical equipment, including laser
scanning and photon microscopes for the Imaging Core Facility within
the Child Health Institute.
Support is also requested in fiscal year 2005 to enable the
Informatics Institute of the University of Medicine and Dentistry of
New Jersey to recruit additional faculty and build core research
facilities for modern drug discovery. This initiative will strengthen
the University's graduate program in bioinformatics that is training
the next generation of scientists in the field, and will accelerate the
work of UMDNJ scientists to convert research findings into novel drug
candidates.
Bioinformatics is revolutionizing biomedical research by
integrating mathematics, computer science, molecular biology and
genetics. Scientists use bioinformatics to accelerate the discovery of
new drugs and vaccines for the prevention and treatment of many
diseases. The Informatics Institute was established in 2001 to
strengthen informatics-driven activities at the University of Medicine
and Dentistry of New Jersey and to forge new academic/industry
partnerships in this emerging area. The University's first graduate
program in bioinformatics, funded by a $2.3 million grant from the
State of New Jersey, is helping to meet a critical shortage of skilled
workers in bioinformatics and related disciplines.
Academic collaborations already established by the Informatics
Institute are advancing priority Federal goals in homeland security and
the discovery of cures and treatments for major diseases. Partnerships
forged by the Institute complement and enhance significant Federal
resources that have strengthened UMDNJ's centers of excellence in
biodefense and infectious disease research, cancer research and
treatment, environmental health and toxicology, and biomedical polymer
engineering.
UMDNJ presently supports a broad array of research programs engaged
in the discovery and characterization of potential drug targets (genes,
proteins). However, the full value of these substantial research
accomplishments is often lost, due to the absence of capacity for
translating these targets into novel drug candidates. This capability
can be provided only through major investment in resources for modern
drug discovery: bioinformatics, computer-aided molecular modeling and
design, medicinal chemistry, and high-throughput synthesis and
screening of drug candidates. The opportunity is especially compelling
in New Jersey, which is home for 15 of the world's largest
pharmaceutical companies and more than 150 biotechnology companies and
which ranks highest in per capita number of scientists and engineers in
the Nation.
The sustained growth of our graduate program and other informatics
initiatives requires a major investment in computational facilities and
the recruitment of additional bioinformatics faculty and staff. We
respectfully seek Federal participation of $6 million in fiscal year
2005 to recruit additional bioinformatics and medicinal chemistry
faculty and postdoctoral researchers, and to build core research
facilities for modern drug discovery.
We thank this committee for its strong support of biomedical
research and for the University's programs.
______
Prepared Statement of the California Government and Private Sector
Coalition for Operation Clean Air's Sustainable Incentive Program
Mr. Chairman and members of the subcommittee, on behalf of the
California Government and Private Sector Coalition for Operation Clean
Air's (OCA) Sustainable Incentive Program, we are pleased to submit
this statement for the record in support of our fiscal year 2005
funding request of $11,000,000 for OCA as part of a Federal match for
the $180 million already contributed by California State and local
agencies and the private sector for incentive programs. This request
consists of $11,000,000 from DOE for alternative fuels and utility
infrastructure funding.
California's great San Joaquin Valley is in crisis. Home to over
3.3 million people, its 25,000 square miles now has the unhealthiest
air in the country. Even Los Angeles, long known as the smog capital of
the Nation, can boast better air quality by certain standards. While
peak concentrations of air pollutants are still greater in Los Angeles,
for the past 4 years, the San Joaquin Valley has exceeded Los Angeles
in violations of the ozone 8-hour Federal health standard.
A combination of geography, topography, meteorology, tremendous
population growth, urban sprawl and a NAFTA corridor of two major
highways with over 5 million diesel truck miles per day, have collided
to produce an air basin in which over 300,000 people, nearly 10 percent
of the population, suffer from chronic breathing disorders. In Fresno
County, at the heart of the San Joaquin Valley, more than 16 percent of
all children suffer from asthma, a rate substantially higher than any
other place in California. The extreme summertime heat creates smog
even though smog-forming gases are less than half the amount in the Los
Angeles basin. There is no prevailing wind to flush the natural
geologic bathtub and, as a result, pollutants and particulates
stagnate, accumulate, and create unhealthy air.
Degradation of human health is not the only consequence of poor
quality air. In December 2003, the San Joaquin Valley Air Pollution
Control District Board decided to become the first Air District in the
Nation to voluntarily declare itself an ``extreme'' non-attainment
area. This designation, if approved by USEPA, will defer until 2010 the
date for attainment of Federal standards of air quality, but comes at a
cost of imposing permitting on thousands of more businesses and even
further discouraging business expansion or relocation. More Valley's
businesses will be required to obtain permits and comply with
increasingly burdensome regulations imposed by Federal and State law
and the Air Pollution Control District, resulting in added cost in
compliance, reporting and record keeping. At the same time, the area is
burdened by chronic unemployment rates of nearly 20 percent.
Encouraging business expansion in or relocation to the San Joaquin
Valley to combat unemployment will be extremely difficult in the face
of such regulatory burdens.
The San Joaquin Valley is home to the most productive agricultural
land in the world. Over 350 crops are produced commercially on 28,000
farms encompassing more than 5 million irrigated acres. While the
agricultural industry has made great strides at considerable expense to
replace old diesel engines and manage fugitive dust and other
emissions, farming does contribute to the problem. However, it is a $14
billion industry that forms the backbone of the Valley's economy, and
its vitality is crucial.
Industry alone is not the source of the Valley's poor air quality.
Population growth rates exceeding those in the rest of the State and
most of the Nation, in an area without effective mass transit, where
cheap land has led to a landscape of suburbia and sprawl, results in
excessive over-reliance on the automobile. Trucking has increased
dramatically with the increase in population, and Federal free trade
policies. Other factors such as fireplace burning in the winter, open
field agricultural burning because of lack of sufficient alternatives,
and wild fires resulting from lack of controlled burning in the nearby
foothills and mountains all contribute to the problem.
Despite the challenges listed above, much progress has been made.
The State has spent nearly $80 million on improvement and compliance
programs. Local government and private industry have spent over $100
million on technology and compliance. As specific examples, over one-
half of the diesel operated irrigation pumps used by agriculture have
been replaced with cleaner engines. The City of Tulare has converted
its entire fleet of vehicles to natural gas as have several other
private fleet operators. A $45 million federally financed comprehensive
study of ozone and particulate matter is nearing completion. As a
result, the number of 1-hour EPA health standard exceedences has been
reduced by 40 percent since 1989.
But much more needs to be done. The District estimates that daily
emissions must be reduced by 300 tons to achieve attainment. There is
no single or short-term quick fix. The entire Valley (an area the size
of the State of Connecticut) is part of the problem and the entire
Valley will need to be part of the solution.
Operation Clean Air is a coalition of business, government, health
care, and environmental groups throughout the eight-county San Joaquin
Valley Air Pollution Control District. Its goal is to clean the
Valley's air and increase its economic prosperity. The coalition seeks
to catalogue efforts that have produced positive effects and identify
those strategies that could produce even greater effects if supported
by sufficient resources. At the heart of its efforts will be an array
of sustainable, voluntary practices and activities that can and will be
undertaken by all of the residents of the San Joaquin Valley, both
public and private, to improve air quality.
This unique public-private partnership has invested considerable
resources in this project to date, and will continue to do so, but
Federal funding is both imperative and justified to help address what
is essentially an unfounded Federal mandate.
For fiscal year 2005, our Coalition is seeking funding of
$11,000,000 from the Department of Energy's (DOE) Energy Supply Program
for the installation and operation of alternative fuels infrastructure
throughout the San Joaquin Valley Air Basin. Infrastructure for both
mobile and stationary engines is included and will allow for the
accelerated introduction of alternatively fueled vehicles in municipal
fleets, public school fleets, and private fleets as well as for
stationary, agricultural irrigation pump engines in the rural areas.
The widespread use of lower-emitting engines will provide significant
improvement to air quality in the San Joaquin Valley while furthering
the goals of the President's National Energy Policy, which recommends
enhancement of the supply of reliable energy while protecting our
environment. OCA believes, like DOE, that there is direct applicability
of alternative fuel (e.g. natural gas) engine expertise to the
development and deployment of hydrogen power systems. OCA wants to see
the San Joaquin Valley as the first area in the Nation for hydrogen
infrastructure development and hydrogen vehicle deployment. This is in
direct alignment with the Secretary's long-term vision of a zero
mission future, free of reliance on imported energy. Development of
alternative fuel infrastructure will augment the low-emission vehicle
program by providing much needed compressed natural gas (CNG) and
liquefied natural gas (LNG) fueling facilities.
Thank you very much your consideration of our requests.
______
Prepared Statement of the University of Rochester
PROGRAM
DOE Inertial Confinement Fusion Program--DOE [National Nuclear
Security Agency (NNSA)] Defense Programs for fiscal year 2005.
BACKGROUND
The inertial confinement fusion (ICF) program is a key element in
the Department of Energy's (DOE) Stockpile Stewardship Program (SSP)
authorized by Public Law 103-160 to ``establish a stewardship program
to ensure the preservation of the core intellectual and technical
competencies of the United States in nuclear weapons.'' The OMEGA laser
at the University of Rochester's Laboratory for Laser Energetics (LLE)
is the principal laser research facility for the University and three
national laboratories (Los Alamos, Sandia, and Livermore) for ICF and
SSP experiments. LLE is the only facility that also trains significant
numbers of graduate students in inertial fusion. The OMEGA laser, the
highest-power ultraviolet fusion laser in the world, is the principal
laser facility for SSP activities for DOE in fiscal year 2005 and for a
number of years to come. The Secretary of Energy Advisory Board (SEAB)
National Ignition Facility Laser System Task Force Report noted the
importance of continuing scientific contact with ``. . . the laser-
based research at the University of Rochester.''
LLE (since 1970) is the only ICF program that has been jointly
supported by the Federal Government, State government, industry,
utilities, and a university. LLE makes fundamental scientific
contributions to the national program. The Laboratory transfers
technology to the public and private sectors through the training of
graduate students and interactions with industry and other Federal
laboratories. The Laboratory also serves as a National Laser Users'
Facility benefiting scientists throughout the country.
The present primary mission of LLE's research is to validate the
direct-drive option for ICF intended for use on the National Ignition
Facility (NIF) in order to demonstrate ignition and energy gain. DOE
proclaimed that OMEGA is also needed to meet mission-critical
requirements for ignition on NIF, and to conduct experiments to support
the SSP mission, including some that are classified, in collaboration
with the national laboratories.
The OMEGA laser at LLE is the only operating experimental facility
that can demonstrate the scientific potential of direct drive to
provide a modest- to high-gain energy option for the Nation. For fiscal
year 2005 funds are also requested to continue construction of the
extended performance capability (EP) to the OMEGA facility and funds to
continue to develop petawatt technologies for the national program. DOE
has approved the mission need and purchase of long-lead procurements
during fiscal year 2003, and approval of the final design is expected
during fiscal year 2004. The Congress provided $20,000,000 to continue
the OMEGA EP project in the fiscal year 2004 Energy and Water
Development Appropriation Act, which will significantly expand the
research capabilities of the existing OMEGA facility. OMEGA EP provides
the Nation with an enhanced capability to perform SSP experiments, to
test high-gain ICF concepts, and to provide a premier high-intensity-
laser interaction facility for the United States. The University of
Rochester is providing a new building ($20 million) for the OMEGA EP
project at no cost to the government. Because the new cost-shared
facility will keep the research at the LLE technologically current, LLE
will be able to continue to be a national and world leader in its
field, and serve as an important, cost-effective support facility to
assure the success of the NIF. This represents an unusually successful
partnership among the private sector, academia, and the State and
Federal governments. The OMEGA facility will be the only large laser
implosion facility for NNSA in the United States until at least 2008
when NIF construction is completed.
REQUESTED ACTION
To provide the support for program deliverables and the operation
and extension of OMEGA (for both ICF experiments and SSP experiments),
and to maintain the related training programs at Rochester, a total of
$69,469,000 for the University of Rochester for fiscal year 2005 is
required. This amount includes $41,469,000 for operating funds and
$4,000,000 for the OMEGA EP facility included in the administration's
request, and an additional $21,000,000 for the OMEGA extended
performance capability, and $3,000,000 for petawatt technology
development required to maintain the cost and schedule of the project.
DISCUSSION
Thermonuclear fusion is the process by which nuclei of low atomic
weight such as hydrogen combine to form higher atomic weight nuclei
such as helium. In this process some of the mass of the original nuclei
is lost and transformed to energy in the form of high-energy particles.
Energy from fusion reactions is the most basic form of energy in the
universe; our sun and all other stars produce energy by thermonuclear
fusion reactions occurring in their interior. Fusion is also the
process that provides the vast destructive power of thermonuclear
weapons. The most significant long-term potential commercial
application of fusion is the generation of electric power.
To initiate fusion reactions, the fuel must be heated to tens of
millions of degrees. In stellar bodies, containment is possible because
of the large gravitational force. On earth, two approaches are being
investigated to demonstrate controlled fusion: magnetic confinement
fusion and inertial confinement fusion (ICF). ICF involves the heating
and compression of fusion fuel by the action of intense laser or
particle beam drivers. There are two approaches to ICF, direct and
indirect drive: indirect drive involves the conversion of beam energy
to X-rays to compress a fuel capsule in an enclosure called a hohlraum;
direct drive involves the direct irradiation of spherical fuel capsules
by energy from a laser and may be more energetically efficient than
indirect drive. For either approach, if very extreme density and
temperature conditions are produced, it is possible to produce many
times more energy in these fusion reactions than the energy provided by
the drivers.
OMEGA EXTENDED PERFORMANCE (OMEGA EP) FACILITY AT UR/LLE
The University of Rochester's Laboratory for Laser Energetics (UR/
LLE) is the lead laboratory for direct-drive inertial confinement
fusion (ICF) and is the location of the OMEGA laser facility. Only
three facilities, OMEGA at Rochester, Z at Sandia National Laboratory,
and a few operating beamlines of NIF are available to conduct high-
energy-density physics experiments in support of the Nation's Stockpile
Stewardship Program (SSP) and ICF. (In fiscal year 2003, over half of
the OMEGA shots, 742, were for outside users, including 578 for the
national laboratories.) OMEGA and the National Ignition Facility (NIF)
under construction at the Lawrence Livermore National Laboratory are
designed to support SSP and ICF by performing planar-target and
spherical-implosion experiments at high laser irradiation intensities.
Using high-energy, high-power lasers, a highly compressed core of
deuterium-tritium fuel can be assembled that, with the full energy of
NIF, will achieve controlled thermonuclear ignition and gain. (Ignition
refers to initiating a self-sustaining fusion reaction, and gain refers
to achieving more energy out of the reaction than was used to initiate
it.)
Three years ago UR/LLE proposed to construct a super-high-
intensity, high-energy laser facility. DOE has approved the mission
need and purchase of long-lead procurements in fiscal year 2003, and
approval of the final design is expected during fiscal year 2004. The
Fiscal Year 2004 Energy and Water Development Appropriations Act
provided $20,000,000 to continue this project. The project schedule and
cost, based on actual funding received to date, are shown in the table
below. The total cost ($82,000,000 in as-spent dollars) is unchanged
from the previous request. The University of Rochester is providing a
building, estimated to cost about $20,000,000 to house the new
facility. The new building is under construction and is slated for
completion by January 2005.
OMEGA EP will significantly benefit SSP and ICF through the ability
to produce intense photon, proton, and electron beams for radiography
and by conducting experiments to test advanced computer codes relevant
to nuclear weapons, basic science, and astrophysics. There are
additional exciting basic science applications that enhance our
national ability to attract and retain the scientific expertise
required for the United States' nuclear weapons program in the future.
Super high-intensity, high-energy laser sources will significantly
advance ignition physics. Very high intensities allow the ICP and SSP
programs to test advanced concepts that can increase the gain of an ICF
target. During the past year, LLE scientists have examined using NIF
for direct drive (laser light directly drives the target). Calculations
indicated that the gain is potentially at least three times larger than
can be achieved using indirect drive (conversion of laser light to X-
rays that drive the target). Since a conversion of laser light to X-
rays is not required for direct drive, the efficiency of the process is
higher. With direct drive, the target absorbs about five times more
energy, and it is this increased energy that is responsible for the
higher gain.
OMEGA EP, when completed, will support the SSP and ICF programs.
Concomitantly, with the delay of the NIF this added capability would
contribute substantially to the critical need to recruit and retain
graduate students, postdoctoral associates, University faculty members,
and national laboratory scientists in areas of national need.
OMEGA is the only facility capable of assembling an highly
compressed deuterium-tritium core from a cryogenic target; it is the
only location where advanced concepts for ignition and gain can be
tested. Other advantages include (1) operating synergies with OMEGA
will reduce operating costs, (2) UR/LLE has an established scientific
user base, and (3) UR/LLE has a proven track record of delivering
similar-sized projects on time and on budget as well as operating and
maintaining large-scale laser systems.
The construction time line and cost for this extended capability is
as follows:
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2004 2005 2006 2007
----------------------------------------------------------------------------------------------------------------
Design & Long Lead Procurement................. 13 ........... ........... ........... ...........
Procurement and Assembly....................... ........... 20 25 ........... ...........
Integration & Commissioning.................... ........... ........... ........... 17 7
----------------------------------------------------------------------------------------------------------------
Total Project Cost.--$82,000,000 (OMEGA EP) plus $20,000,000
(building) plus $1,500,000 from New York State (auxiliary target
chamber) equals $103,500,000. (This is for OMEGA EP, $82 million from
the Federal Government, $20 million from the University, and $1.5
million from New York State. Not included is the operating and research
cost that are included in the administration's request annually.)
PREVIOUS FEDERAL FUNDING
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Fiscal Year 2004 Appropriation.......................... $63,132,000
Fiscal Year 2003 Appropriation.......................... 47,878,800
Fiscal Year 2002 Appropriation.......................... 34,693,000
Fiscal Year 2001 Appropriation.......................... 33,150,000
------------------------------------------------------------------------
REQUESTED ACTION
To provide the support for program deliverables and the operation
and extension of OMEGA (for both ICF experiments and SSP experiments),
and to maintain the related training programs at Rochester, a total of
$69,469,000 for the University of Rochester for fiscal year 2005 is
required. This amount includes $41,469,000 for operating funds and
$4,000,000 for the OMEGA EP facility included in the administration's
request, an additional $21,000,000 for the OMEGA extended performance
capability, and $3,000,000 for petawatt technology development required
to maintain the cost and schedule of the project.
______
Prepared Statement of the Energy Sciences Coalition
Chairman Domenici, the Energy Sciences Coalition expresses its
great appreciation for the leadership you have shown as chairman of the
Energy and Water Development Appropriations Subcommittee. We applaud
your vision of how the programs of the Department of Energy's Office of
Science will lead to research discoveries and technological
developments benefiting this and future generations. We are requesting
$3.8 billion for the Office in fiscal year 2005.
The Energy Sciences Coalition is a broadly based organization
representing scientists, engineers and mathematicians in universities,
industry, professional societies, and national laboratories. We share
your belief that the research supported by the Office of Science has
and will make significant contributions to our Nation's security and
standard of living.
The coalition supports the findings of several reviews of the
programs of the Office of Science, and the pressing need to augment its
funding. Last fall, Secretary Spencer Abraham's Advisory Board released
a report on the department's science programs. This task force panel
was chaired by MIT President Charles Vest, including the former
president of the NASDAQ Stock Market; industry, university, and
association CEOs; and senior policy analysts. Among their findings and
conclusions are:
``America can be free, secure and economically strong in the 21st
century only if we continue to excel in science and advanced
technology.'' ``America can meet its energy needs if and only if we
make a strong and sustained investment in research in physical science,
engineering, and applicable areas of life science, and if we translate
advancing scientific knowledge into practice.'' ``DOE science budgets
have not received the priority merited by their importance to our
Nation's future energy, security, and economy.'' ``The federal
investment in physical science and engineering has been stagnant for
over thirty years. During this same period, the Department's national
laboratories have suffered from decay and deferred maintenance, and
U.S. industry has largely phased out its basic research programs and
organizations. As a result, the U.S. is no longer the clear leader in
some important areas of science.''
Groundbreaking research supported by the Office of Science is
conducted in universities and other institutions across the United
States.
Our Nation benefits not only from the discoveries that will be made
with this support, but also from the training of America's next
generation of researchers. Such training will be instrumental in
maintaining our Nation's technological superiority in the international
marketplace. The Office of Science also plays an extremely important
and unique role in the design, construction, and operation of large-
scale user facilities used by researchers supported by the Department
of Energy, National Institutes of Health, and the National Science
Foundation.
Enclosed please find a copy of the Energy Sciences Coalition's
fiscal year 2005 funding statement. After carefully considering the
President's science goals in areas such as hydrogen energy, fusion, the
human genome, climate change, and a review of the 20-year facilities
and strategic plans, the Coalition recommends an increase in the budget
for the Office of Science of not less than $350 million to a level over
$3.8 billion.
In closing, I again express the coalition's gratitude for the
leadership that you and your colleagues have demonstrated in supporting
the important work of the Office of Science. Please do not hesitate to
contact me if the Coalition can be of any assistance.
The Energy Sciences Coalition (ESC) supports the Department of
Energy (DOE) Office of Science funding levels approved by both the
House and Senate in their respective versions of the Energy Policy Act.
These funding levels are easily justifiable given the tremendous
scientific opportunities that currently exist, as well as the broad
range of other science-related issues that the Office of Science is
uniquely positioned to address. These opportunities, and the facilities
and projects needed to achieve them, are well documented and outlined
in both the Department's 20-year scientific facilities plan released in
November 2003 and the Secretary of Energy Advisory Board's (SEAB)
December 2003 report on DOE science.
However, the Energy Sciences Coalition is also aware of the
significant fiscal constraints facing the administration and Congress
this year. Weighing the economic and national security value of
investments in these science programs against current fiscal
constraints, the Energy Sciences Coalition urges an fiscal year 2005
increase of not less than $350 million for the DOE Office of Science,
bringing the total DOE Office of Science budget to a level over $3.8
billion. While significantly less than the fiscal year 2005 levels
contained in the House and Senate passed energy policy bills cited
above, this figure is similar to the funding levels these bills
contained for fiscal year 2004.
We believe that growth for the DOE Office of Science at a rate
lower than 10 percent in fiscal year 2005 and in the next few years--a
growth rate which is less than what is called for in the House and
Senate authorization bills--will make it virtually impossible for the
Department to move forward with the initiatives and recommendations
outlined in the 20-year plan and by SEAB without severely damaging
already existing and very successful DOE science programs.
FISCAL YEAR 2005 ESC FUNDING STATEMENT ENDORSEES
American Chemical Society; American Institute of Physics; American
Mathematical Society; American Physical Society; American Society of
Agronomy; American Society of Plant Biologists; Association of American
Universities; Battelle; Crop Science Society of America; Fusion Power
Associates; General Atomics; Krell Institute; Massachusetts Institute
of Technology; Michigan State University; National Association of State
Universities and Land-Grant Colleges; North Carolina State University;
Ohio State University; Optical Society of America; Princeton
University; Purdue University; Society for Industrial and Applied
Mathematics; Soil Science Society of America; Southeastern Universities
Research Association; Stanford University; Stony Brook University;
Universities Research Association, Inc.; University of California;
University of Chicago; University of Cincinnati; University of Houston;
University of Pittsburgh; University of Southern California; University
of Tennessee; University of Washington; University of Wisconsin-
Madison.
______
Prepared Statement of the University Corporation for Atmospheric
Research
On behalf of the University Corporation for Atmospheric Research
(UCAR) and the university community involved in weather and climate
research and related education, training and support activities, I
submit this written testimony for the record of the Senate Committee on
Appropriations, Subcommittee on Energy and Water Development.
UCAR is a 68-university member consortium that manages and operates
the National Center for Atmospheric Research (NCAR) and additional
programs that support and extend the country's scientific research and
education capabilities. In addition to its member research
universities, UCAR has formal relationships with approximately 100
additional undergraduate and graduate schools including several
historically black and minority-serving institutions, and 40
international universities and laboratories. UCAR's principal support
is from the National Science Foundation (NSF) with additional support
from other Federal agencies including the Department of Energy (DOE).
DOE OFFICE OF SCIENCE
We were extremely pleased to see the recommendations of the task
force of the Secretary of Energy Advisory Board contained in the Final
Report of the Task Force on the Future of Science Programs at the
Department of Energy. The scientific community is aware that the report
recommendation to strengthen the Federal investment in the physical
sciences and advanced engineering research is supported by many members
of Congress; it is a recommendation on which I am sure many
subcommittee members would like to act.
DOE is the largest Federal sponsor of basic research in the
physical sciences, but the level of funding for DOE's core science
programs has remained stagnant for years, while the number of
``congressionally directed projects'' has increased. While many of
these add-ons seem worthy, they are diverting DOE's base funding from
peer-reviewed research programs that are planned well in advance to
accomplish DOE's mission in service to the country and are competed
among the country's top researchers.
In the House Science Committee's recently released ``Views and
Estimates'' for fiscal year 2005, the committee acknowledges the very
difficult budget decisions Congress will have to make this year.
However, as it has in past years, it criticizes the administration's
budget request for DOE's Office of Science, calling it ``inadequate''
and ``dwarfed'' by support for the life sciences in recent years. Two
bills, H.R. 34 and S. 915, authorize increased funding for the Office
of Science, essentially doubling its budget. The conference report to
H.R. 5, The Energy Policy Act of 2003, recommends that the Office of
Science budget be funded at $4.2 billion, a 23 percent increase over
the fiscal year 2004 amount.
As you are well aware, a healthy science budget ensures a vital
workforce, strong economy, and contributes directly to national
security. The administration's fiscal year 2005 request cuts DOE's
Office of Science by 2 percent. I urge the subcommittee to fund the DOE
Office of Science at the level of the fiscal year 2004 Original
Appropriation plus Adjustments, or $3.5 billion, at the very least, and
to enable the agency to apply the entire appropriated amount toward
planned agency research priorities. This level of research funding will
critically augment and reinvigorate the work of researchers throughout
the Nation.
BIOLOGICAL AND ENVIRONMENTAL RESEARCH
Within the Office of Science, the Biological and Environmental
Research (BER) program develops the knowledge necessary to identify,
understand, and anticipate the potential health and environmental
consequences of energy production and use. These are issues that are
absolutely critical to our country's well-being and security, yet the
request of $496.6 million for BER research is down over 29 percent from
the fiscal year 2004 enacted level of $641.5 million. This reduction
eliminates over $80.0 million worth of ``extra projects'' funded last
year.
Peer-reviewed university research programs play a critical role in
the BER program involving the best researchers the Nation's
institutions of higher learning have to offer, and developing the next
generation of researchers. Approximately half of BER basic research
funding supports university-based activities directly and indirectly.
All BER research projects, other than those in the ``extra projects''
category, undergo regular peer review and evaluation. In step with the
recommendation made above for the Office of Science, I urge the
subcommittee to fund Biological and Environmental Research at the level
of the fiscal year 2004 Original Appropriation plus Adjustments, or
$641.5 million, and to enable BER to apply the entire appropriated
amount toward planned agency research priorities that are peer-reviewed
and involve the best researchers to be found within the Nation's
university research community as well as the DOE labs.
CLIMATE CHANGE RESEARCH
Within BER, the Climate Change Research long-term goal is to
deliver improved climate data and models for policy makers to determine
safe levels of greenhouse gases for the Earth system. This work is
critical to the health of the planet. The extremely important target
capability for fiscal year 2005 is to enable studies of the
interactions between the carbon cycle and climate and between secondary
sulfur aerosols and climate. The Climate Change Research Request of
$142.9 million is flat with the fiscal year 2004 Original Appropriation
level. I urge the subcommittee to fund Climate Change Research at a
level that is consistent with the request for BER stated above.
Climate Change Research is composed of several programs of great
importance to the atmospheric sciences community and the Nation.
Climate and Hydrology contains Climate Modeling which develops the best
coupled atmospheric-ocean general circulation models, and Atmospheric
Radiation Measurement (ARM) Research which contributes to our
understanding of the processes that control solar and thermal infrared
radiative transfer through clouds and at the earth's surface. ARM
supports a number of scientific ``Fellows,'' making an important
contribution to the development of the next generation of climate
scientists. Both Climate Modeling and ARM are programs that are of
critical importance to the Nation's overall climate change research
efforts. Climate and Hydrology receives a 0.6 percent increase in the
fiscal year 2005 request. I urge the subcommittee to fund Climate and
Hydrology at a level that is consistent with the request for BER and
Climate Change Research stated above.
Also within Climate Change Research, Atmospheric Chemistry and
Carbon Cycle is a program that includes Atmospheric Science, the work
of which is essential for assessing the effects of energy production on
air quality and climate through the quantification of the impacts of
energy-related aerosols on climate. This work will be closely linked
with the ARM program described above. I urge the subcommittee to fund
Atmospheric Chemistry and Carbon Cycle at a level that is consistent
with the request for BER and Climate Change Research stated above.
GLOBAL CHANGE EDUCATION PROGRAM (GCEP)
Within the Climate Change Research program, the Global Change
Education Program funds the DOE's Summer Undergraduate Experience and
Graduate Research Environmental Fellowships, as well as positions in
the Significant Opportunities in Atmospheric Research and Science
(SOARS) program, which is managed by UCAR. The DOE education programs
are not slated to receive an increase, which has been the case for many
years. DOE participation in the multi-agency funded SOARS program has
been eliminated completely by BER program managers because of funding
issues.
The lack of ethnic diversity among advanced-degree atmospheric
science graduates is well documented. SOARS is a model mentoring
program, which received the prestigious Presidential Award for
Excellence in Science, Mathematics, and Engineering Mentoring in 2001.
Now in its eighth year, SOARS provides a unique, 4-year experience for
underrepresented students interested in graduate work in the
atmospheric and related sciences. If funding for the Climate Change
Research Program does not increase over the fiscal year 2005 requested
level, underrepresented students will be turned away from this
invaluable SOARS experience.
ADVANCED SCIENTIFIC COMPUTING RESEARCH (ASCR)
DOE's ASCR provides advances in computer science and the
development of specialized software tools that are necessary to
research the major scientific question being addressed by the Office of
Science. ASCR's continued progress is of particular importance to
atmospheric scientists involved with complex climate model development,
research that takes enormous amounts of computing power. By their very
nature, problems dealing with the interaction of the earth's systems
and global climate change cannot be solved by traditional laboratory
approaches. The Intergovernmental Panel on Climate Change (IPCC) has
begun work on its Fourth Assessment Report to be completed in 2007, and
ASCR's contribution to this international document will be critical. In
order to maintain our international leadership in advanced computing, I
urge the subcommittee to provide ASCR with the requested level of
$204.3 million.
CONCLUSION
On behalf of UCAR and the atmospheric sciences research community,
I want to thank the subcommittee for the important work you do for U.S.
scientific research. We appreciate your attention to the
recommendations of our community concerning the fiscal year 2005 budget
of the Department of Energy. We understand and appreciate that the
Nation is undergoing significant budget pressures at this time, but a
strong Nation in the future depends on the investments we make in
science and technology today.
______
Prepared Statement of the Southern States Energy Board
Mr. Chairman, the Southern States Energy Board (SSEB) is pleased to
provide this statement for the record to the U.S. Senate Appropriations
Subcommittee on Energy and Water Development as it considers fiscal
year 2005 funding for the U.S. Department of Energy (DOE), Office of
Energy Efficiency and Renewable Energy (EERE), and specifically related
to the biomass/biofuels fiscal year 2005 budget request. SSEB governors
recommend that the Congress appropriate $5,000,000 to the State/
Regional Biomass Partnership and direct the Department to work with
regional governors' organizations, specifically the Southern States
Energy Board, the Coalition of Northeast Governors Policy Institute,
the Council of Great Lakes Governors and the Western Governors'
Association, to make the Partnership even more successful.
This line item, which would continue an appropriation that has
appeared in every Federal budget since fiscal year 1983, is for the
purpose of promoting economic development by fostering the use of
biobased products and bioenergy, and takes advantage of and sustains
existing networks and infrastructure developed throughout the Nation by
the regional governors' organizations.
The Board commends Congress for restoring $3,000,000 to the U.S.
DOE Regional Biomass Energy Program (RBEP) in the Fiscal Year 2003
Omnibus Bill and $2,000,000 in the Fiscal Year 2004 Energy and Water
Development Appropriations bill. In addition, the Board wishes to
commend the administration for reinstating the State/regional biomass
partnership in the fiscal year 2005 budget request. SSEB and other
regional governors organizations received new cooperative agreements
for the fiscal year 2003 funding on March 2, 2004.
Energy independence is a critical element in the administration's
Energy Policy and can be significantly enhanced by developing viable
domestic alternative energy sources. Funding for the State/regional
biomass partnership greatly enhances the States' ability to participate
in the development of biomass energy markets.
As the precursor to the State/Regional Biomass Partnership, the
Regional Biomass Energy Program was created by Congress in 1983 under
the Energy and Water Development Appropriations bills Public Law 97-88
and Public Law 98-50. The enabling legislation instructed DOE to design
its national program to work with States on a regional basis, taking
into account regional biomass resources and energy needs.
The five regional partnerships, working with representatives in all
50 States, Puerto Rico and the Virgin Islands, and hosted primarily by
regional governors' organizations (Southern States Energy Board,
Coalition of Northeastern Governors, the Council of Great Lakes
Governors and the Western Governors' Association) are recognized
nationally for their combined experience related to biomass
technologies and policies. SSEB and other regional governors'
organizations hosting State/regional biomass energy partnerships are
critical to DOE for formulating policies and facilitating private
sector deployment of advanced energy technologies and practices into
target markets.
Beyond the potential economic development benefits, participating
States gain the opportunity to strengthen and integrate the work of
energy, agriculture, forestry, environmental and other State agencies.
Where issues are the same among several States, strategies can be
developed to address these issues across State borders. Examples
include the development of similar State legislative actions, working
with the private sector with multi-State locations, and multi-State
training and outreach to economize resources.
In the past, the southern States have participated in this strategy
through the Southeastern Regional Biomass Energy Program (SERBEP) which
has provided over $5.8 million in project funds since 1992 with a cost-
share of over $21 million by leveraging State and private funding for
technology development and deployment. In 1999, SSEB was selected as
the ``host organization'' for the SERBEP and received funding through a
5-year cooperative agreement.
SSEB is an interstate compact organization with enabling
legislation in each member State, covering the 16 States plus Puerto
Rico and the U.S. Virgin Islands, all members of the Southern Governors
Association. To assure broad based representation, SSEB is governed by
a board composed of the governor and a member of the House and Senate
from each member State and a Federal representative named by the
President under Public Law 87-563 and Public Law 92-440. Over the years
of administering the SERBEP, SSEB has created awareness and support for
bioenergy/biobased products in the executive and legislative branches
of State government, improved the effectiveness of State/regional
biomass activities, provided more formal interaction between the States
and improved policy development and coordination in particular.
We urge Congress to include this modest but vital appropriation in
the fiscal year 2005 Energy and Water Development Appropriations bill
to protect the Federal Government's 20-year investment in State/
regional biomass activities, and to continue the promotion of the
strong Federal interest in viable and growing biobased products and
bioenergy.
______
Prepared Statement of the American Society for Microbiology
The American Society for Microbiology (ASM), the largest single
life science organization in the world, with more than 43,000 members,
appreciates the opportunity to provide written testimony on the fiscal
year 2005 budget for the Department of Energy (DOE) science programs.
The ASM represents scientists working in academic, medical,
governmental, and industrial institutions worldwide. Microbiological
research is focused on human health and the environment and is directly
related to DOE programs involving microbial genomics, climate change,
bioremediation, and basic biological processes important to energy
sciences.
DOE OFFICE OF SCIENCE
The scientific enterprise and the overall economy continue to
benefit enormously from investments in the basic sciences made by the
DOE Office of Science. The DOE Office of Science, the Nation's primary
supporter of the physical sciences, is also an essential partner in the
areas of biological and environmental science research as well as in
mathematics, computing, and engineering. Furthermore, the Office of
Science supports a unique system of programs based on large-scale,
specialized user facilities that bring together working teams of
scientists focused on such challenges as global warming, genomic
sequencing, and energy research. The Office of Science is also an
invaluable partner in certain scientific programs of the National
Institutes of Health (NIH) and the National Science Foundation (NSF)
and supports peer-reviewed, basic research in DOE-relevant areas of
science in universities and colleges across the United States. These
cross-disciplinary programs contribute enormously to the knowledge base
and training of the next generation of scientists, while providing
worldwide scientific cooperation in physics, chemistry, biology,
environmental science, mathematics, and advanced computational
sciences.
The Office of Science will play an increasingly important role in
the administration's goal of U.S. energy independence in this decade.
Many DOE scientific research programs share the goal of producing and
conserving energy in environmentally responsible ways. Programs include
basic research projects in microbiology, as well as, extensive
development of biotechnology-based systems to produce alternative fuels
and chemicals, to recover and improve the process for refining fossil
fuels, to remediate environmental problems, and to reduce wastes and
pollution.
The administration's proposed budget for fiscal year 2005 includes
$3.4 billion for the Office of Science, representing a decrease of $68
million compared to fiscal year 2004. The 2 percent cut proposed for
fiscal year 2005 for the Office of Science is a significant departure
from the congressionally authorized level of $4 billion. The proposed
budget for Biological and Environmental Research (BER) in fiscal year
2005 is $502 million or $140 million below fiscal year 2004. The
proposed budget for Basic Energy Sciences (BES) in fiscal year 2005
would provide $1.06 billion, representing an increase of $53 million,
or 5.2 percent, over the prior year.
BIOLOGICAL AND ENVIRONMENTAL RESEARCH PROGRAMS
DOE is the lead Federal agency supporting genomic sequencing of
non-pathogenic microbes through its Genomics: GTL Program. This
sequence information provides clues into how we can design
biotechnological processes that will function in extreme conditions and
potentially solve pressing national priorities, such as energy and
environmental security, global warming, and energy production. The
administration has requested $67.5 million for fiscal year 2005,
compared to funding of $63.5 million for fiscal year 2004. These
requests include a $4 million increase for research on function and
control of molecular-scale machines for energy and environmental
applications, as well as $5 million for Project Engineering and Design
of the first Genomics: GTL project, the Facility for Production and
Characterization of Proteins and Molecular Tags.
In view of the valuable insights and tremendous practical potential
from microbial genomic sequencing, the ASM recommends that Congress
provide an additional $25 million for the GTL Program in fiscal year
2005. ASM believes that these additional funds will be vital if DOE's
role in this science frontier is to expand.
BER GENOMICS: GTL PROGRAM
Since microbes power the planet's carbon and nitrogen cycles, clean
up our wastes, and make important transformations of energy, they are
an important source of biotechnology products, making DOE research
programs extremely valuable for advancing our knowledge of the non-
medical microbial world. Knowing the complete DNA sequence of a microbe
provides important keys to the biological capabilities of the organism
and is the first step in developing strategies to more efficiently
detect, use, or reengineer that microbe to address an assortment of
national issues. The DOE Genomics: GTL genomic sequencing program has
an important impact on nearly every other activity within BER. In
addition to this program itself, a substantial portion of the DOE Joint
Genome Institute's (JGI) sequencing capacity continues to be devoted to
the sequencing of microbial genomes as well as DNA in mixed genomes
obtained from microbial communities dwelling within specialized
ecological niches. As part of these efforts, DOE continues to complete
DNA sequences of genomes in microbes with potential uses in energy,
waste cleanup, and carbon sequestration.
About 40 percent of the JTI capacity is dedicated to serving direct
DOE needs, primarily through the Genomics: GTL program, while the
remaining 60 percent of this capacity serves as a state-of-the-art DNA
sequencing facility for whose use scientists submit proposals that are
subject to merit review. These sequencing projects will be conducted at
no additional cost for the extramural scientific community. These
efforts are expected to have a substantial impact on the BER
Environmental Remediation Sciences program, reflecting the fact that
much of this program is focusing on the use and role of microbes in
environmental remediation. In addition, the Genomics: GTL program will
continue to have a major impact on the BER Climate Change Research
program because of the role microbes play in the global carbon cycle
and the potential for developing biology-based solutions for
sequestering carbon.
The ASM applauds DOE's leadership in recognizing this important
need in science and endorses expansion of its microbial genome
sequencing efforts, particularly in using DNA sequencing to learn more
about the functions and roles of the preponderance of microorganisms
that cannot yet be grown in culture. The ASM also sees this program as
the basis for an expanded effort to understand more broadly how genomic
information can be used to understand life at the cellular and higher
levels, and thus urges Congress to fully support this exciting program.
ENVIRONMENTAL REMEDIATION
The overall goal of the DOE Environmental Management Science
Program (EMSP), which was transferred from Environmental Management to
the BER program, is to support basic research that improves the science
base underpinning the clean up of DOE sites. Traditional clean up
strategies may not work or be cost effective for many of the challenges
that could prevent the successful closure of DOE sites. The EMSP,
through its support of basic research, aims to develop and validate
technical solutions to complex problems, providing innovative new
technologies to overcome major obstacles that lead to future risk
reduction and cost and time savings. It is the intent or the
expectation of the EMSP that the basic research projects funded are
directed toward specific issues and uncertainties at the DOE cleanup
sites.
DOE bioremediation activities are centered on the Natural and
Accelerated Bioremediation Research (NABIR) program, a basic research
program focused on determining how and where bioremediation may be
applicable as a reliable, efficient, and cost-effective approach for
cleaning up or containing metals and radionuclides in contaminated
subsurface environments. In the NABIR program, research advances will
be made from molecular to field scales; on genes and proteins used in
bioremediation and in overcoming physicochemical impediments to
bacterial activity; in non-destructive, real-time measurement
techniques; on species interaction and response of microbial ecology to
contamination; and in understanding microbial processes for altering
the chemical state of metallic and radionuclide contaminants. NABIR
activities have a substantial involvement of academic scientists.
Additional EMSP research efforts will focus on contaminant fate and
transport in the subsurface, nuclear waste chemistry and advanced
treatment options, and novel characterization and sensor tools. In
addition, studies on bioremediation of organic contaminants are
conducted in EMSP, complementing EMSP projects will continue to be
funded through a competitive peer review process. The most
scientifically meritorious research proposals and applications will be
funded based on availability of funds and programmatic relevance to
ensure a complete and balanced research portfolio that addresses DOE
needs. Research will be funded at universities, national laboratories,
and at private research institutes and industries. This research will
be conducted in collaboration with the Office of Environmental
Management. Funding is reduced to increase research at and development
of Field Research Centers through the NABIR program.
The administration's proposed budget for Bioremediation research,
including the NABIR program, is $105 million, a $2.8 million decrease
compared to fiscal year 2004. The ASM considers these DOE environmental
remediation programs to be of considerable importance, and recommends
that funding for fiscal year 2005 be increased by an additional $5
million.
CLIMATE CHANGE RESEARCH
The ASM is pleased to see the administration's support of Climate
Change Research continue in its fiscal year 2005 budget. The ASM
endorses the President's proposed $143 million budget for fiscal year
2005, which is about equivalent with levels in fiscal year 2004. The
Climate Change Research subprogram seeks to apply the latest scientific
knowledge (i.e., genomic, new computational methods) to the potential
effects of greenhouse gas and aerosol emissions on the climate and the
environment. This program is DOE's contribution to the interagency U.S.
Global Change Research Program proposed by President Bush in 1989 and
codified by Congress in the Global Change Research Act of 1990 (Public
Law 101-106). This program is vital if science is to advance its
understanding of the radiation balance between the surface of the Earth
and the uppermost portions of the atmosphere and how this will affect
the planet's climate and ecosystems.
The Ecological Processes portion of the subprogram is focused on
understanding and simulating the effects of climate and atmospheric
changes on the biological structure and functioning of planetary
ecosystems. Research will also identify potential feedbacks from
changes in the climate and atmospheric composition. This research is
critical if we are to better understand the changes occurring in our
ecosystems from increasing levels of atmospheric pollutants.
The ASM urges Congress to support this important research within
the Office of Science budget. The Climate Change Research subprogram is
a key component in developing more accurate climate modeling and
ecosystem data, and promises to yield new technologies to address
future climate shifts.
BASIC ENERGY SCIENCE
The administration's requested funding for the Office of Basic
Energy Sciences (BES) for fiscal year 2005 is $1.06 billion,
representing an increase of $53 million over fiscal year 2004. This
program is a principal sponsor of fundamental research for the Nation
in the areas of materials sciences, chemistry, geosciences, and
biosciences as it relates to energy. Program initiatives include
microbiological and plant sciences focused on harvesting and converting
energy from sunlight into energy feedstock such as cellulose and other
products of photosynthesis, as well as how those chemicals may be
further converted into energy rich molecules such as methane, hydrogen
and ethanol. Alternative and renewable energy sources will remain of
strategic importance in the Nation's energy portfolio, and DOE is well
positioned to advance basic research in this area. The advances in
genomic technologies have given this research area a tremendous new
resource for advancing the Agency's bioenergy goals.
NEW TECHNOLOGIES AND UNIQUE FACILITIES
New technologies and advanced instrumentation derived from DOE's
expertise in the physical sciences and engineering have become
increasingly valuable to biologists. The beam lines and other advanced
technologies for determining molecular structures of cell components
are at the heart of current advances to understand cell function and
have practical applications for new drug design. DOE advances in high
throughput, low cost DNA sequencing; protein mass spectrometry, cell
imaging and computational analyses of biological molecules and
processes are other unique contributions of DOE to the Nation's
biological research enterprise. The budget request for the DOE
Nanoscale Science program includes an increase of $8.7 million to a
level of $211 million for fiscal year 2005. Furthermore, DOE has unique
field research facilities for environmental research important to
understanding biogeochemical cycles, global change and cost-effective
environmental restoration. In short, DOE's ability to conduct large-
scale science projects and draw on its unique capabilities in physics,
computation and engineering is critical for future biological research.
The ASM strongly supports the basic science agenda across the
scientific disciplines and encourages Congress to maintain its
commitment to the Department of Energy research programs. Such
commitment will help maintain U.S. leadership in science and
technology.
SCHEDULE OF FEDERAL AWARDS 2004
--------------------------------------------------------------------------------------------------------------------------------------------------------
Grants Receipts or Grants
Federal Grantor/Pass-through Grantor/Program Title Cost Federal Program or Receivable 1/1/ Revenue Disbursements/ Receivable 12/
Center CFDA Number Award Amount 2004 Recognized Expenditures 31/2004
--------------------------------------------------------------------------------------------------------------------------------------------------------
MAJOR PROGRAMS:
Resident Postdoctoral Research.................. 783 93.283 $999,381.00 $89,902.49 ............ .............. $89,902.49
---------------------------------------------------------------------------------------------------
Total Major Programs.......................... ....... ........... 999,381.00 89,902.49 ............ .............. 89,902.49
===================================================================================================
OTHER FEDERAL ASSISTANCE:
HHS:
NIGMS-MARC.................................. 789 93.88 431,300.00 .............. ............ .............. 0
Environmental Micoorganisms................. 694 93.856 10,000.00 .............. ............ .............. 0
DNA Repair and Mutagenesis.................. 457 93.393 25,000.00 .............. ............ .............. 0
Summer Institute............................ 848 93.856 24,000.00 532.99 ............ .............. 532.99
Conf Biofilms............................... 425 93.121 25,000.00 25,000.00 ............ .............. 25,000.00
Environmental Pathogens..................... 694 93.856 10,000.00 .............. ............ .............. 0
Microbial Triggers of Disease............... 666 93.855 5,000.00 .............. ............ .............. 0
Candida and Candidiasis..................... 434 93.121 10,000.00 .............. ............ .............. ..............
National Science Foundation:
Plant Biotechnology......................... 678 47.074 15,000.00 .............. ............ .............. 0
Pathogens................................... 697 47.074 110,000.00 33,608.72 ............ .............. 33,608.72
Sub Contract BioSciEd Net................... 787 47.076 100,000.00 30,838.75 ............ .............. 30,838.75
Beyond Microbial Genomics................... 691 47.074 15,000.00 .............. ............ .............. ..............
U.S. Department of Energy:
DNA Repair and Mutagenesis.................. 457 81.049 20,000.00 .............. ............ .............. 0
Prokaryotic Development..................... 472 81.049 10,000.00 .............. ............ .............. 0
Geobiology.................................. 675 81.049 15,000.00 .............. ............ .............. 0
Microbial Ecology and Genomics.............. 676 81.049 25,000.00 .............. ............ .............. 0
Multicellular Cooperation................... 671 81.049 15,000.00 .............. ............ .............. 0
Systems Microbiology........................ 691 ........... 10,000.00 6,461.06 ............ .............. 6,461.06
USDA:
Conference Salmonella....................... 421 10.206 10,000.00 10,000.00 ............ .............. 10,000.00
Pre-harvest Food Safety..................... 663 10.001 5,000.00 5,000.00 ............ .............. 5,000.00
Pre-harvest Food Safety..................... 663 10.2 25,000.00 19,350.00 ............ .............. 19,350.00
Pre-harvest Food Safety..................... 663 10.206 10,000.00 7,000.00 ............ .............. 7,000.00
Conf Salmonella Pathogenesis................ 421 10.206 10,000.00 .............. ............ .............. 0
EPA:
Microbial Eolocy............................ 676 66.5 20,000.00 .............. ............ .............. 0
Infectious Disease GI Tract................. 670 66.606 50,000.00 .............. ............ .............. 0
PO HHS/FDA Pre-harvest Food................. 663 ........... 10,000.00 10,000.00 ............ .............. 10,000.00
PO US Dept of Army.......................... 475 ........... 10,000.00 .............. ............ .............. 0
---------------------------------------------------------------------------------------------------
Total Other Awards........................ ....... ........... 1,025,300.00 147,791.52 $0.00 $0.00 147,791.52
===================================================================================================
Total Federal Awards...................... ....... ........... 2,024,681.00 237,694.01 0.00 0.00 237,694.01
--------------------------------------------------------------------------------------------------------------------------------------------------------
Prepared Statement of the Nuclear Energy Institute
On behalf of the nuclear energy industry, I thank you for your
support of nuclear technology-related programs in the Energy Department
(DOE) and your oversight of the Nuclear Regulatory Commission (NRC) for
fiscal 2004.
The Nuclear Energy Institute is responsible for developing policy
for the U.S. nuclear industry. NEI's 270 corporate and other members
represent a broad spectrum of interests, including every U.S. energy
company that operates a nuclear power plant. NEI's membership also
includes nuclear fuel cycle companies, suppliers, engineering and
consulting firms, national research laboratories, manufacturers of
radiopharmaceuticals, universities, labor unions and law firms.
My statement for the record addresses three key points for your
consideration this year:
(1) Congress should reclassify the Nuclear Waste Fund, reorienting
it to its original purpose and ensuring adequate funding for the Yucca
Mountain repository project.
(2) Increased research and development (R&D) on advanced nuclear
technology is essential to maintain America's leadership role in
commercial nuclear technologies.
(3) The NRC's budget and staffing should be reassessed in light of
current trends.
I also will discuss briefly several important programs that the
nuclear energy industry supports, including research into the health
effects of low levels of radiation.
CONGRESS SHOULD RECLASSIFY THE NUCLEAR WASTE FUND
The Nuclear Waste Fund was established in 1982 as a separate
account in the Federal treasury. However, congressional efforts to
control deficit spending in the 1980's and 1990's changed the status of
the fund. Currently, Congress funds the used fuel programs within the
confines of the discretionary spending allocation for the Energy and
Water Development Appropriations bill. As a result, annual
appropriations for Yucca Mountain and related programs have been
reduced $723 million below DOE's budget requests in the past 11 years--
significantly hampering DOE's progress toward accepting the Nation's
used nuclear fuel. Funding shortfalls in past years have forced DOE to
defer important programs, including procuring transportation containers
for used reactor fuel; acquiring transportation and logistics services;
creating the final grant process for providing emergency responder
assistance; developing a transportation infrastructure in Nevada; and
working with regional, State, tribal and local representatives on
transportation planning.
The industry urges Congress to reclassify the Nuclear Waste Fund
this year, as proposed by the president's fiscal 2005 budget and
introduced as H.R. 3981, to prevent future funding shortfalls for Yucca
Mountain. The Nuclear Waste Fund has three unique characteristics that
justify modifying the current budget rules governing its use in this
way:
--The Federal Government is obligated by law and contracts signed
with electric companies that operate nuclear power plants to
implement the used fuel management program.
--The fund is intended to cover the entire cost of the Federal
Government's commercial used fuel management program over
several decades.
--The disposal of used nuclear fuel from commercial reactors is
financed entirely through a fee established by Federal law and
paid by consumers of electricity generated at nuclear power
plants.
INDUSTRY SUPPORTS BUDGET REQUEST OF $880 MILLION FOR YUCCA MOUNTAIN
The industry greatly appreciates the House for its report language
emphasizing the need for early action on infrastructure development for
the used nuclear fuel disposal program. The committee's direction
resulted in an announcement by DOE on preferences for rail transport in
Nevada and should lead to a record of decision on route selection this
year.
Last year, the H.R. 6 conference report endorsed the highest level
of funding for Yucca Mountain to date. At $580 million, DOE could
address many technical challenges necessary for submitting an
application to the NRC by December for a license to construct the
repository.
NEI recognizes the challenge that the committee faces in fiscal
2005, based on assumptions included in the budget request on this issue
and urges the committee to make allocations under section 302(b) of the
Budget Act consistent with fully funding the administration request of
$880 million for Yucca Mountain. Absent sufficient funding in fiscal
2005, the industry does not believe the program will meet key
milestones for accepting used fuel in 2010, and these potential delays
will result in higher costs for the program and increased liabilities
to the government.
Although the repository program is the foundation of our national
policy for managing used nuclear fuel, the nuclear industry also
recognizes the value in researching emerging technology for used
reactor fuel treatment and management. Such farsighted programs will
allow our Nation to remain the world leader in nuclear technologies.
However, technologies like transmutation--the conversion of used
nuclear fuel into a smaller volume of less toxic materials--still
require a Federal repository for disposal of the radioactive by-
products generated from the process.
research and development of new nuclear energy systems necessary
The industry supports increased funding for fiscal 2005 for DOE's
R&D programs for the development of new nuclear energy systems. The
nuclear energy industry urges the committee to approve at least $60
million for the Nuclear Energy Technology (NET) program. Within the NET
program, $10 million should be earmarked for the early site permit
process as requested by DOE. This is an important component of the
revised NRC licensing process for new nuclear power plants passed by
Congress in 1992, and testing is already under way. An additional $50
million should be used to begin a 6-year, cost-shared program to test
the combined operating and construction license process for new nuclear
plants, based on the industry's response to a DOE solicitation that
will be awarded this year. DOE should support deployment of proven
generation III-plus technology for this program.
The industry believes that the government has an early role in
bringing advanced reactor concepts, known as Generation IV reactors, to
the marketplace. NEI urges your support for a next-generation nuclear
plant at the new Idaho National Laboratory, funded through the
Generation IV Nuclear Energy Systems Initiative program. The industry
also supports the Nuclear Hydrogen Initiative at $9 million.
Although DOE continues to fund the International Nuclear Energy
Research Initiative (I-NERI), the domestic version of this program,
NERI, has been terminated and a new initiative has been proposed. We
believe the current program fills a vital need identified in a 1997
report by the President's Council of Advisers on Science and Technology
(PCAST) and endorsed by the energy secretary's Nuclear Energy Research
Advisory Committee. We do not support the change for NERI. Rather, the
industry believes this collaborative program between national
laboratories, industry and universities should be continued at $7
million for fiscal 2005.
PCAST also recommended another R&D initiative--the Nuclear Energy
Plant Optimization (NEPO) program--to produce additional amounts of
affordable energy from America's 103 commercial reactors. Through NEPO,
DOE has been working with the nuclear industry and DOE's national
laboratories to apply new technology to nuclear and non-nuclear
equipment. The industry encourages the committee to allocate $10
million for the NEPO program to help fund important research on
materials management issues at nuclear power plants, including improved
availability and maintenance at nuclear plants; technology to predict
and measure the extent of materials degradation from plant aging;
introducing new materials in a cost-effective manner to mitigate
materials effects; and as an underpinning to both the applied materials
and technology development and deployment activities, advanced research
tools and the evolving knowledge of materials properties. DOE has
proposed no funding for the program in fiscal 2005 despite the obvious
benefits that the national laboratories can bring to bear on these
issues.
The industry also requests $27.5 million for DOE's University
Support Program, which supports vital research and educational programs
in nuclear science at the Nation's colleges and universities. With
nuclear plant license renewal continuing at a brisk pace and the
industry considering plans for new nuclear plants, demand for highly
educated and trained professionals will continue. NEI encourages the
committee to consider a new $2 million program within the Office of
Nuclear Energy, Science and Technology to support universities that
have undergraduate and graduate programs in health physics. The
industry's most recent human resources survey reveals an increasing
demand for health physics professionals. This need will become acute in
the next few years when many will retire.
NRC BUDGET AND STAFFING SHOULD BE REASSESSED
Our Nation's focus on security has led to significant security
enhancements at nuclear power plants. Nuclear power plant security was
among the most robust in the industrial sector before the Sept. 11,
2001, terrorist attacks, and our facilities are even more secure today.
By year's end, our industry will have invested an additional $1 billion
over the past 2 years in security-related improvements, such as
fortified perimeter security, improved background checks and tighter
access control and detection ability at our plants. The nuclear energy
industry has added one-third more security officers, for a total of
7,000 well-trained, armed security officers at our 67 nuclear power
plant sites. The industry will continue to make these investments and
improvements to enhance private industry's best security program.
The NRC's proposed fiscal 2005 budget totals $670.3 million, an
increase of $44.2 from the fiscal 2004 budget, and the highest ever for
this agency. Fiscal 2005 is an appropriate time for the NRC to review
its budget and resource allocations in light of current demands and
other resources available. The industry's 103 commercial reactors are
operating at world-class levels of safety and reliability. Nearly 75
percent of the reactors have the NRC's highest safety performance
indicator in all categories, and most of the others have only a single
indicator in the next lower level. The excellent safety record of U.S.
nuclear power plants lays the groundwork for refining regulatory
oversight based on performance and safety insights. Additionally,
insights from the reactor oversight process indicate that several major
regulations for power reactors are not providing a significant safety
value. A disciplined review of the regulatory process should be
undertaken to focus on the more probable, safety-significant events
rather than highly unlikely events.
INDUSTRY SUPPORT FOR ADDITIONAL ACTIVITIES
Nuclear Nonproliferation.--The industry supports the disposal of
excess weapons-grade nuclear materials through the use of mixed-oxide
fuel in reactors in the United States and Russia.
Low-Dose Radiation Health Effects Research.--The industry strongly
supports continued funding for the DOE's low-dose radiation research
program.
Nuclear Research Facilities.--The industry is concerned with the
declining number of nuclear research facilities. We urge the committee
to fully fund the request for a DOE lead lab in Idaho for nuclear
energy research and development.
Uranium Facility Decontamination and Decommissioning.--The industry
fully supports cleanup of the gaseous diffusion plants at Paducah, KY;
Portsmouth, OH; and Oak Ridge, TN. Commercial nuclear power plants
contribute more than $150 million to the Decontamination and
Decommissioning Fund for government-managed uranium enrichment plants
each year. Other important environmental, safety and/or health
activities at these facilities should be paid for out of general
revenues.
International Nuclear Safety Program and Nuclear Energy Agency.--
NEI supports the funding requested for the DOE and NRC's international
nuclear safety programs. They are programs aimed at improving the safe
commercial use of nuclear energy worldwide.
Medical Isotopes Infrastructure.--The nuclear industry supports the
administration's program for the production of medical and research
isotopes.
______
Prepared Statement of the Society of Nuclear Medicine
The Society of Nuclear Medicine (SNM) appreciates the opportunity
to submit written comments for the record regarding funding for a
National Isotope Program in fiscal year 2005. SNM is an international
scientific and professional organization founded in 1954 to promote the
science, technology and practical application of nuclear medicine. Its
14,000+ members are physicians, technologists and scientists
specializing in the research and practice of nuclear medicine.
To that end, SNM advocates the creation of a National Isotope
Program to ensure consistent radioisotope research and production
programs as isotope availability is crucial to nuclear medicine
procedures and innovation in this field. The Society stands ready to
work with policymakers at the local, State, and Federal levels to
advance policies and programs that will that our Nation have a steady
supply of isotopes for the advancement of nuclear medicine research.
WHAT IS NUCLEAR MEDICINE?
Nuclear medicine is a medical specialty that involves the use of
small amounts of radioactive pharmaceuticals, called ``Radiotracers''
or ``Tracers,'' to help diagnose and treat a variety of diseases. These
tracers are detected by special types of cameras that work with
computers to provide nuclear medicine physicians and the patient's
doctor precise pictures of the area of the body being imaged. It is a
way to gather medical information that may otherwise be unavailable,
require exploratory surgery, or necessitate more expensive diagnostic
tests.
Nuclear medicine procedures, such as PET (positron emission
tomography) and SPECT (single-photon emission tomography), often
identify abnormalities very early in the progression of a disease--long
before some medical problems are apparent with other diagnostic tests.
This early detection allows a disease to be treated early in its course
when there may be a more successful prognosis.
An estimated 16 million nuclear medicine imaging and therapeutic
procedures are performed each year in the United States. Nuclear
medicine procedures are among the safest diagnostic imaging tests
available. The amount of radiation from a nuclear medicine procedure is
comparable to that received during a diagnostic X-ray.
Some of the more frequently performed nuclear medicine procedures
include:
--Bone scans to examine orthopedic injuries, fractures, tumors or
unexplained bone pain.
--Cardiac scans to identify normal or abnormal blood flow to the
heart muscle, measure heart function or determine the existence
or extent of damage to the heart muscle after a heart attack.
--Breast scans which are used in conjunction with mammograms to more
accurately detect and locate cancerous tissue in the breasts.
--Liver and gallbladder scans to evaluate liver and gallbladder
function.
--Cancer imaging to detect tumors and determine the severity
(staging) of various types of cancer.
--Treatment of thyroid diseases and certain types of cancer.
--Brain imaging to investigate problems within the brain itself or in
blood circulation to the brain.
--Renal imaging in children to examine kidney function.
funding cuts and program restructuring threaten nuclear medicine
The Nation needs a consistent, reliable supply of isotopes for
medical, security, space power, and research uses. Today, new isotopes
for diagnostic and therapeutic uses are not being developed, critical
isotopes for national security are in short supply, and demand for
isotopes critical to homeland security exceeds supply. Additionally,
the national isotope infrastructure is chronically under funded at the
DOE.
New science, such as molecular nuclear medicine, is emerging that
will require reliable supplies of isotopes. By abandoning isotope
research at the DOE, innovative medical research progress into
radiopharmaceuticals will be lost, and the medical community will not
benefit from valuable discoveries for the diagnosis and treatment of
millions of Americans.
Isotopes for research & development (R&D) at reasonable prices are
not available due to declining resources and policy change in the DOE
Isotope Program. The DOE program and its resources have been declining
for two decades, and recent policy changes by DOE have significantly
worsened the situation and are impeding the development of new isotope
applications. Recently DOE eliminated all R&D funding for DOE
applications and production. Lost opportunities to develop new advanced
technologies through isotope research will have major impacts on
pressing needs of the United States in health care and national
security.
The Advanced Nuclear Medicine Initiative (ANMI) at the DOE fostered
peer-reviewed nuclear medicine research studies that advanced medical
and clinical research and practice in this important area of medicine.
The program was funded at $2.5 million in fiscal year 2000, 2001 and
2002. By abandoning this program in fiscal year 2003, innovative
medical research progress into radiopharmaceuticals was lost.
Also, the fiscal year 2003 budget instituted an upfront payment
policy for development and production of radionuclides for treatment or
research. This restructuring severely hampered researcher's ability to
obtain essential radioisotopes by imposing a much higher cost on
researchers, and created a difficult payment situation, since
researchers often cannot commit outlays until grants are issued and
funds are received, with the end result being an adverse effect on
public health. A resulting crisis in the availability of isotopes
constrained existing nuclear medicine procedures and had a chilling
effect on research into new procedures to diagnose and treat serious
and life-threatening diseases, such as cancer.
Additionally, relying on foreign sources for radioisotopes severely
hampers researcher's ability to obtain essential radioisotopes. Because
no commercial isotope-producing reactors exist in the United States,
there is a strong dependence on foreign sources for reactor-produced
radioisotopes. The U.S. facilities for reactor-produced isotopes are
limited to DOE and university reactors, primarily at the University of
Missouri Research Reactor Center (MURR). The resulting crisis in the
availability of isotopes will constrain existing nuclear medicine
procedures and will have a chilling effect on research into new
procedures to diagnose and treat serious and life-threatening diseases,
such as cancer.
Decline in nuclear and radiochemistry education is not being
addressed to avoid impacts on radioisotope production and applications
R&D. A recent survey with 19 universities found a continuation of a
long-term decline in the number of graduate programs, graduate
students, and faculty in the United States in nuclear and radiochemical
fields. Currently, there are 5-10 U.S. Ph.D. graduates in these
research fields each year while the projected demand in the near future
at the DOE and within the nuclear medicine community will be several
hundred Ph.D.'s. In the past, foreign graduates have solved the
shortage of nuclear scientists. However, because of a worldwide decline
in the number of young scientists in the field, foreign graduates are
not available to address the shortage.
CREATION OF A NATIONAL ISOTOPE PROGRAM
Congress should realign isotope resources to create the National
Isotope Program to produce essential isotopes, reestablish R&D for
production and isotope applications, establish nuclear technology
education activity, and support isotope production infrastructure of
new and existing facilities.
Major components of a National Isotope Program include:
--Establishment of a national program to meet the national need for
isotopes. The program should be supported at the Secretary of
Energy level with the program director reporting at a high
level in DOE;
--Collaboration with R&D, medical, and industrial users to assess
isotope needs and transfer technologies to accelerate
applications;
--Facilitation of the transfer of commercially viable isotope
programs to the private sector;
--Investment in R&D to improve isotope production, processing, and
utilization;
--Continuously monitoring the isotope needs of researchers and
clinicians;
--Establishment of an education program to ensure that the next
generation of nuclear and radiochemists are trained and
available to support the Nation's needs; and
--Upgrade the capability at the University of Missouri and other
existing facilities that produce isotopes.
A National Isotope Program will continue innovation in nuclear
medicine to meet the health care needs of the Nation. To that end, SNM
advocates the allocation of $25 million in fiscal year 2005 for the
creation of the National Isotope Program.
CONCLUSION
The Society of Nuclear Medicine once again stands ready to work
with policymakers to advance policies that will reduce and prevent
suffering from disease for all Americans, while ensuring an adequate
nuclear medicine workforce. Again, we thank you for the opportunity to
present our views on funding for nuclear medicine workforce and
research related programs and stand ready to answer any questions you
may have.
LIST OF WITNESSES, COMMUNICATIONS, AND PREPARED STATEMENTS
----------
Page
American:
Museum of Natural History, Prepared Statement of the......... 473
Nuclear Society, Prepared Statement of the................... 450
Public Power Association, Prepared Statement of the.......... 465
Society:
For Microbiology, Prepared Statement of the.............. 486
Of Plant Biologists, Prepared Statement of the........... 462
Arizona Power Authority, Letter From the......................... 363
Arkansas River Basin Interstate Committee, Prepared Statement of
the............................................................ 308
Association of State Dam Safety Officials, Prepared Statement of
the............................................................ 306
Beckner, Dr. Everet H., Deputy Administrator, Defense Programs,
National Nuclear Security Administration, Department of Energy. 63
Bennett, Senator Robert F., U.S. Senator from Utah:
Questions Submitted by....................................... 188
Statement of................................................. 69
Bi-State Turkey Creek Association, Prepared Statement of the..... 338
Biomass Energy Research Association, Prepared Statement of the... 468
Blue Valley Association, Prepared Statement of the............... 336
Board of:
Commissioners of the Pontchartrain Levee District, Prepared
Statements of the........................................357, 358
Levee Commissioners For the Yazoo-Mississippi Delta, Prepared
Statement of the........................................... 339
Mississippi Levee Commissioners, Prepared Statement of the... 334
Bob Lawrence & Associates, Inc., Prepared Statements of...453, 455, 456
Bowman, Admiral Frank L., Deputy Administrator, Naval Reactors
Program, National Nuclear Security Administration, Department
of Energy...................................................... 63
Prepared Statement of........................................ 95
Statement of................................................. 93
Brazos River Harbor Navigation District, Prepared Statement of
the............................................................ 394
Broderick, James, Chairman for Colorado, Prepared Statement of... 310
Brooks, Ambassador Linton F., Under Secretary, National Nuclear
Security Administration, Department of Energy:
Prepared Statement of........................................ 79
Statements of................................................63, 72
Burns, Senator Conrad, U.S. Senator from Montana, Statement of... 218
Calaveras County Water District, Prepared Statement of the....... 391
California Government and Private Sector Coalition for Operation
Clean Air's Sustainable Incentive Program, Prepared Statement
of the......................................................... 478
Cameron County, Texas, Prepared Statement of..................... 393
Carey, Bob, Senior Policy Advisor, Office of the Secretary,
Department of Energy........................................... 159
Central Arizona Water Conservation District (CAWCD), Prepared
Statement of the............................................... 428
Chambers County-Cedar Bayou Navigation District, Prepared
Statement of the............................................... 395
Chu, Margaret, Director, Office of Civilian Radioactive Waste
Management, Department of Energy:
Prepared Statement of........................................ 169
Statement of................................................. 168
City of:
Crookston, Minnesota, Prepared Statement of the.............. 294
Flagstaff, Arizona, Prepared Statement of the................ 299
Granite Falls, Minnesota, Prepared Statement of the.......... 292
Los Angeles Board of Harbor Commissioners, Prepared Statement
of the..................................................... 287
Morro Bay, Prepared Statement of the......................... 380
St. Helena, California, Prepared Statement of the............ 389
Stillwater, Prepared Statement of the........................ 289
Virginia Beach, Virginia, Prepared Statement of the.......... 366
Watsonville, California, Prepared Statement of the........... 419
Clay and Bailey Manufacturing Company, Prepared Statement of the. 339
Coalition of Northeastern Governors, Prepared Statement of the... 451
Cochran, Senator Thad, U.S. Senator from Mississippi:
Prepared Statements of.......................................6, 219
Questions Submitted by....................................... 53
Statement of................................................. 219
Colorado:
River:
Basin Salinity Control Forum, Prepared Statement of the.. 411
Board of California, Prepared Statement of the........... 398
Congress, Prepared Statement of the...................... 448
Energy Distributors Association, Prepared Statement of
the.................................................... 436
Water Conservation District, Prepared Statement of the... 431
Springs Utilities, Prepared Statement of..................... 408
Cook, Beverly, Assistant Secretary, Office of Environment, Safety
and Health, Department of Energy:
Prepared Statement of........................................ 163
Statement of................................................. 159
Coosa-Alabama River Improvement Association, Inc., Prepared
Statement of the............................................... 331
Craig, Senator Larry, U.S. Senator from Idaho:
Prepared Statement of........................................ 71
Questions Submitted by......................................54, 131
Statements of..........................................31, 143, 222
Crescent City Harbor District, Prepared Statement of the......... 363
DECO Companies, Inc., Prepared Statement of...................... 337
Denver Water, Prepared Statement of.............................. 448
Department of Natural Resources, State of Utah, Prepared
Statement of the............................................... 400
Dolores Water Conservancy District, Prepared Statement of the.... 409
Domenici, Senator Pete V., U.S. Senator from New Mexico:
Opening Statements of...............................1, 63, 135, 207
Prepared Statements of..............................2, 66, 137, 209
Questions Submitted by.......................44, 117, 189, 198, 205
Dorgan, Senator Byron L., U.S. Senator from North Dakota:
Prepared Statements of....................................... 220
Questions Submitted by....................................... 251
Statements of................................................ 219
Duchesne County Water Conservancy District, Prepared Statement of
the............................................................ 408
Empire State Development Corporation, State of New York, Prepared
Statement of................................................... 345
Energy Sciences Coalition, Prepared Statement of the............. 482
Feinstein, Senator Dianne, U.S. Senator from California,
Statement of................................................... 70
Fifth Louisiana Levee District, Prepared Statement of the........ 301
Flowers, Lieutenant General Robert B., Chief of Engineers, Corps
of Engineers--Civil, Department of the Army, Department of
Defense--Civil................................................. 257
Prepared Statement of........................................ 267
Statement Of................................................. 265
Fort Peck Assiniboine and Sioux Tribes and Dry Prairie Rural
Water, Prepared Statement of the............................... 431
Four Corners Power Plant, Prepared Statement of the.............. 410
Garman, David, Assistant Secretary, Office of Energy Efficiency
and Renewable Energy, Department of Energy..................... 1
Prepared Statement of........................................ 9
Statement of................................................. 8
Garrison Diversion Conservancy District, Prepared Statement of
the............................................................ 401
Grand Valley Water Users Association, Prepared Statement of the.. 411
Green Brook Flood Control Commission, Prepared Statement of the.. 341
Hayes, Pam, Budget Office, Bureau of Reclamation, Department of
the Interior................................................... 207
Health Physics Society (HPS) and Health Physics Program Directors
Organization (HPPDO), Prepared Statement of the................ 449
Hewgley, James M., Jr., Chairman for Oklahoma, Prepared Statement
of............................................................. 313
Holman, Gerald H., Chairman for Kansas, Prepared Statement of.... 310
Irrigation & Electrical Districts' Association of Arizona,
Prepared Statement of the...................................... 400
Johnston, J. Ronald, Program Director, Central Utah Project
Completion Act Office, Bureau of Reclamation, Department of the
Interior....................................................... 207
Prepared Statement of........................................ 239
Jordan Valley Water Conservancy District, Prepared Statement of
the............................................................ 408
Kansas City:
Industrial Council, Prepared Statement of the................ 337
Missouri, Prepared Statement of.............................. 318
Keys, John W., III, Commissioner, Bureau of Reclamation,
Department of the Interior..................................... 207
Prepared Statement of........................................ 228
Statement of................................................. 224
Latture, Paul, II, Chairman for Arkansas, Prepared Statement of.. 309
Lewis and Clark Rural Water System, Prepared Statement of the.... 420
Livers Bronze Co., Prepared Statement of the..................... 338
Longsworth, Paul M., Deputy Administrator, Defense Nuclear
Nonproliferation, National Nuclear Security Administration,
Department of Energy........................................... 63
Louisiana:
Department of Transportation and Development, Prepared
Statement of the........................................... 303
Governor's Task Force on Maritime Industry, Prepared
Statement of the........................................... 327
Magwood, William D., IV, Director, Office of Nuclear Energy,
Science and Technology, Department of Energy:
Prepared Statement of........................................ 24
Statement of................................................. 23
Metropolitan Water Reclamation District of Greater Chicago,
Prepared Statement of the...................................... 383
Mid-Dakota Rural Water System, Prepared Statement of the......... 421
Mississippi Valley Flood Control Association, Prepared Statement
of the......................................................... 348
Mni Wiconi Project, Prepared Statements of the.................413, 438
Mo-Ark Association, Prepared Statement of the.................... 336
Moss Landing Harbor District, Prepared Statement of the.......... 343
Murray, Senator Patty, U.S. Senator from Washington:
Prepared Statements of.....................................146, 276
Questions Submitted by............................59, 133, 197, 203
Statements of...............................................29, 145
Napa County Flood Control and Water Conservation District,
Prepared Statement of the...................................... 386
National Mining Association, Prepared Statement of the........... 354
New:
Jersey Maritime Resources, Department of Transportation,
State of New Jersey, Prepared Statement of................. 345
Mexico Interstate Stream Commission, Prepared Statement of
the........................................................ 425
York City Economic Development Corporation, Prepared
Statement of............................................... 345
Northern Colorado Water Conservancy District, Prepared Statement
of the......................................................... 410
Nuclear Energy Institute, Prepared Statement of the.............. 492
Orbach, Raymond L., Director, Office of Science, Department of
Energy:
Prepared Statement of........................................ 16
Statement of................................................. 15
Pajaro Valley Water Management Agency, Prepared Statement of the. 419
Perkins County Rural Water System, Inc., Prepared Statement of
the............................................................ 409
Port:
Of:
Garibaldi, Prepared Statement of the..................... 325
Los Angeles, Prepared Statement of the................... 287
Sacramento, California, Prepared Statement of the........ 382
San Luis Harbor District, Prepared Statement of the.......... 330
Provo River Water Users Association, Prepared Statement of the... 407
Public Service Company of New Mexico, Prepared Statement of the.. 411
Raley, Bennett W., Assistant Secretary for Water and Science,
Department of the Interior, Prepared Statement of.............. 232
Red River Valley Association, Prepared Statements of the.......360, 443
Redlands Water & Power Company, Prepared Statement of the........ 443
Reid, Senator Harry, U.S. Senator from Nevada:
Prepared Statements of..................................5, 141, 214
Questions Submitted by......................................57, 248
Statements of.......................................3, 67, 138, 210
Riverside County Flood Control and Water Conservation District,
Prepared Statement of the...................................... 373
Roberson, Jessie H., Assistant Secretary, Office of Environmental
Management, Department of Energy:
Prepared Statement of........................................ 148
Statements of..............................................135, 147
Salt River Pima-Maricopa Indian Community and the City of Mesa,
Arizona, Prepared Statement of the............................. 350
Santa Clara Valley Water District, Prepared Statements of the..367, 444
Seminole Tribe of Florida, Prepared Statement of the............. 351
Society of Nuclear Medicine, Prepared Statement of the........... 494
Solar Energy Industries Association, Prepared Statement of the... 459
Southeastern:
Colorado Water Conservancy District, Prepared Statement of
the........................................................ 447
Federal Power Customers, Inc., Prepared Statements of the..298, 464
Southern States Energy Board, Prepared Statement of the.......... 485
Southwestern Water Conservation District, Prepared Statement of
the............................................................ 446
St. Francis Levee District of Arkansas, Prepared Statement of the 364
Standing Rock Sioux Tribe, Prepared Statement of the............. 376
State:
Engineer's Office, Wyoming, Letter From the.................. 426
Of Wyoming, Prepared Statement of the........................ 427
Stevens, Senator Ted, U.S. Senator from Alaska:
Questions Submitted by......................................55, 283
Statement of................................................. 216
Tennessee-Tombigbee Waterway Development Authority, Prepared
Statement of the............................................... 316
The:
Nature Conservancy, Prepared Statement of.................... 396
Port Commerce Department, The Port Authority of New York &
New Jersey, Prepared Statement of.......................... 345
Salvajor Company, Prepared Statement of...................... 338
University:
Corporation for Atmospheric Research, Prepared Statement of
the........................................................ 483
Of:
Medicine and Dentistry of New Jersey, Prepared Statement
of the................................................. 475
Rochester, Prepared Statement of the..................... 479
Upper:
Gunnison River Water Conservancy District, Prepared Statement
of the..................................................... 448
Mississippi River Basin Association, Prepared Statement of
the........................................................ 321
Vance Brothers Inc., Prepared Statement of....................... 337
Ventura Port District, Prepared Statement of the................. 324
Volusia County, Florida, Prepared Statement of................... 352
Warehouse One, Inc., Prepared Statement of....................... 337
Washington Suburban Sanitary Commission, Prepared Statement of
the............................................................ 382
Wolf, Bob, Director, Budget Office, Bureau of Reclamation,
Department of the Interior..................................... 207
Woodley, John Paul, Jr., Assistant Secretary of the Army (Civil
Works), Corps of Engineers--Civil, Department of the Army,
Department of Defense--Civil:
Prepared Statement of........................................ 259
Statement of................................................. 257
SUBJECT INDEX
----------
DEPARTMENT OF DEFENSE--CIVIL
Department of the Army
Corps of Engineers--Civil
Page
Additional Committee Questions................................... 283
Appropriation Accounts........................................... 263
Civil Works:
Construction Backlog......................................... 268
Program Transformation....................................... 269
Financing and Management Initiatives for Operating Projects...... 261
Focus on High-return New Investments............................. 260
Homeland Security................................................ 272
Need for a More Robust Business Management System................ 270
Overview of Fiscal Year 2005 Army Civil Works Budget............. 259
Performance-based Budgeting...................................... 259
President's Management Agenda.................................... 262
Summary of Fiscal Year 2005 Program Budget....................... 267
Value of the Civil Works Program to the Nation's Economy and
Defense........................................................ 271
DEPARTMENT OF ENERGY
Additional Committee Questions................................... 188
Removal of MOAB Uranium Mill Tailings Pile....................... 188
Salt Cavern Disposal Remediation Alternative..................... 189
National Nuclear Security Administration
Additional Committee Questions................................... 117
Advanced Concepts................................................ 74
Budget and Program Highlights.................................... 82
Cooperation with Office of Nuclear Energy........................ 123
Cryogenic Targets................................................ 127
Defense Nuclear Nonproliferation.................................77, 84
Emerging Threat--Pakistan........................................ 120
Establishing Scientific Milestones............................... 128
Facilities and Infrastructure Recapitalization................... 82
Fallout.......................................................... 111
First Cluster-Laser Integration.................................. 126
Fiscal Year 2005 Department of Energy Budget Request............. 96
Funding Schedule for:
Directed Stockpile Work...................................... 108
Pit Manufacturing and Certification Campaign................. 109
International Nuclear Fuel Markets............................... 124
Libya............................................................ 121
Los Alamos Schools............................................... 118
Lower Liability Standard......................................... 120
Management Issues................................................ 86
MESA/CMR Facilities.............................................. 130
Modern Pit Facility.............................................. 130
MOX.............................................................. 113
Program...................................................... 120
National Ignition Facility (NIF)...............................100, 125
Other Options................................................ 129
Plan......................................................... 103
Naval Reactors................................................... 85
Fiscal Year 2005 Department of Energy Budget Detail.......... 97
Nuclear:
Deterrence................................................... 112
Nonproliferation............................................. 115
Research..................................................... 106
Stockpile Report............................................. 116
Testing...................................................... 104
Tests Since Baneberry........................................ 105
Weapons Incident Response.................................... 83
Office of the Administrator...................................... 86
OMEGA............................................................ 127
Pacific Northwest National Lab (PNNL)............................ 133
Performance Measurements, Goals, and Accomplishments............. 98
Program Infrastructure and Administrative Requirements........... 98
Removal of Additional Highly Enriched Uranium (HEU).............. 123
Research & Development (R&D) Funding............................. 123
Revised Nuclear Stockpile Plan................................... 117
Robust Nuclear Earth Penetrator...........................100, 108, 117
Russia--Uncosted Balance & Access Issues......................... 121
Russian Highly Enriched Uranium (HEU)............................ 118
Safeguards and Security.......................................... 117
Design Basis Threat.......................................... 82
Space Reactors................................................... 131
Staffing and Technical Challenges................................ 131
Technical Area 18 Los Alamos National Laboratory................. 131
Today's Nuclear-Powered Fleet.................................... 95
Weapons Activities............................................... 83
Z Machine......................................................114, 128
Office of Civilian Radioactive Waste Management
Additional Committee Questions................................... 188
Budget Request................................................... 205
Cost Reduction Initiatives....................................... 175
Ensuring Adequate Resources to Complete the Mission.............. 174
Fiscal Year:
2003 Accomplishments......................................... 170
2004 Ongoing Activities...................................... 171
2005 Key Activities.......................................... 172
Questions Submitted to the Office of Civilian Radioactive Waste
Management..................................................... 205
The:
Fiscal Year 2005 Budget Request.............................. 170
2010 Objective............................................... 170
Transportation Mode and Routes for Yucca Mountain................ 187
Yucca:
Mountain:
Fiscal Year 2005 Budget Request.......................... 186
Metal Storage Containers................................. 205
Transportation............................................... 206
Office of Energy Efficiency and Renewable Energy
Additional Committee Questions................................... 44
Alaska Examination of Geothermal Sites........................... 55
Assistance to Alaska Companies................................... 55
Barter Arrangements.............................................. 52
Biomass:
And Biorefinery Systems R&D.................................. 12
R&D and:
National Laboratories.................................... 53
Universities............................................. 54
Rationale for Cuts........................................... 59
Centers for Excellence in Hydrogen............................... 46
Ceramic Ion Transport Membranes Project.......................... 53
Departmental Energy Management Program........................... 13
Energy Efficiency:
And Renewable Energy......................................... 4, 7
Program Direction............................................ 41
Evaluation of Renewable Energy Sources on Public Lands........... 55
Facilities and Infrastructure.................................... 14
Financial Assistance to Geothermal Development in Alaska......... 59
For Inspiration and Recognition of Science and Technology (FIRST) 57
Funding:
A Commercial Biomass Plant................................... 54
For Concentrating Solar Power................................ 58
Genomics: GTL Facilities......................................... 59
Geothermal Technology............................................ 12
High Temperature Superconductor Program.......................... 59
Hydrogen:
In the Pacific Northwest..................................... 60
Technology................................................... 10
Idaho National Laboratory........................................ 49
Industry-Laboratory Cooperation.................................. 60
Intergovernmental Activities..................................... 13
International Thermonuclear Experimental Reactor (ITER)..........44, 57
Iowa Environmental/Education Project............................. 57
Louisiana Energy Services--Enrichment............................ 51
National Climate Change Technology Initiative Competitive
Solicitation Program........................................... 14
National Renewable Energy Laboratory............................. 58
Nuclear Energy:
Budget....................................................... 47
Technologies/Nuclear Power 2010.............................. 48
OMB Funding Request.............................................. 46
Offshore Wind.................................................... 15
Program Direction................................................ 14
R&D vs. Funding for Demonstration Projects....................... 46
Radiopharmaceuticals............................................. 51
Renewable Energy:
Program in Alaska............................................ 56
Programs Fiscal Year 2005 Budget Request..................... 10
Solar Energy Technology.......................................... 11
Storage Centers.................................................. 46
Tidal Energy Projects Cost in Alaska............................. 56
Time Scale for Hydrogen in Northwest............................. 60
Twenty Year Facility Plan........................................ 44
Ultra High-Speed Super Computers................................. 60
University Programs.............................................. 50
User Facilities.................................................. 57
Who Controls the Hydrogen Initiative?............................ 45
Wind and Hydropower Technologies................................. 11
Zero Energy Buildings............................................ 11
Office of Environment, Safety and Health
Additional Committee Questions................................... 188
Budget Details................................................... 199
DOE:
And HHS Studies.............................................. 201
Site Profiles................................................ 199
Energy:
Employees Occupational Illness Compensation Program........167, 182
Supply....................................................... 163
Environment, Safety and Health Fiscal Year 2005 Budget Request... 163
Existing Samples--Marshall Islands............................... 203
Marshall Islands:
Annual Meeting............................................... 203
Carryover Funds.............................................. 202
Health Testing............................................... 202
Other Defense Programs........................................... 165
Oversight Reorganization Reform.................................. 198
Questions Submitted to the Office of Environment, Safety and
Health......................................................... 198
Reporting of Injury at DOE Sites................................. 198
Worker Safety Site Profiles...................................... 184
Office of Environmental Management
Additional Committee Questions................................... 188
BNFL Contract Costs Overruns..................................... 176
Defining High-Level Waste........................................ 194
Demonstrating Results............................................ 150
DOE Plan to Convert Depleted Uranium............................. 196
$500 Million Settlement for BNFL................................. 192
Hanford:
Employees Exposure to Tank Farm Vapors....................... 180
300-Area Closure............................................. 177
IG Report on Safety Performance.................................. 181
Laboratory Direct Research Funding at Idaho...................... 177
LDRD Funding At Oak Ridge and Savannah River..................... 177
Los Alamos Cleanup............................................... 190
Managing Future Waste Costs...................................... 191
New Mexico Cleanup Agreement..................................... 183
Office of Future Liability....................................... 190
Plutonium Traces at Waste Isolation Pilot Plant.................. 183
Questions Submitted to the Office of Environmental Management.... 189
Risk Based End States............................................ 196
Initiative................................................... 175
Small Business Contracts and EM Cleanup.......................... 196
The Fiscal Year 2005 Budget Request.............................. 152
Transuranic Waste................................................ 188
Waste:
Deposits at WIPP............................................. 191
Incidental to Reprocessing (WIR)......................178, 187, 193
WIPP Detection of Plutonium...................................... 189
Office of Nuclear Energy, Science and Technology
Additional Committee Questions................................... 44
Advanced:
Fuel Cycle Initiative........................................26, 38
Reactor Hydrogen Code Generation Project..................... 34
Advancement of Nuclear Energy Technology......................... 39
Alaska Examination of Geothermal Sites........................... 55
Assistance to Alaska Companies................................... 55
Barter Arrangements.............................................. 52
Biomass:
R&D and:
National Laboratories.................................... 53
Universities............................................. 54
Rationale for Cuts........................................... 59
Centers for Excellence in Hydrogen............................... 46
Ceramic Ion Transport Membranes Project.......................... 53
Climate Change................................................... 43
Evaluation of Renewable Energy Sources on Public Lands........... 55
Financial Assistance to Geothermal Development in Alaska......... 59
For Inspiration and Recognition of Science and Technology (FIRST) 57
Funding:
A Commercial Biomass Plant................................... 54
For Concentrating Solar Power................................ 58
Generation IV Nuclear Energy Systems............................. 25
Genomics: GTL Facilities......................................... 59
High Temperature Superconductor Program.......................... 59
Hydrogen in the Pacific Northwest................................ 60
Idaho National Laboratory........................................ 49
Industry-Laboratory Cooperation.................................. 60
INEEL Solicitation and Infrastructure............................ 39
INL--DOE's Command Center for Nuclear R&D........................ 28
International Thermonuclear Experimental Reactor (ITER)..........44, 57
Iowa Environmental/Education Project............................. 57
Louisiana Energy Services--Enrichment............................ 51
National Renewable Energy Laboratory............................. 58
Nuclear:
Energy....................................................... 4
Budget................................................... 47
Technologies/Nuclear Power 2010.......................... 48
Engineering Programs......................................... 23
Hydrogen Initiative.......................................... 26
Power 2010................................................... 27
OMB Funding Request.............................................. 46
R&D vs. Funding for Demonstration Projects....................... 46
Radiological Facilities Management............................... 28
Radiopharmaceuticals............................................. 51
Renewable Energy Program in Alaska............................... 56
Storage Centers.................................................. 46
Tidal Energy Projects Cost in Alaska............................. 56
Time Scale for Hydrogen in Northwest............................. 60
Twenty Year Facility Plan........................................ 44
Ultra High-Speed Super Computers................................. 60
University:
Programs..................................................... 50
Reactor Fuel Assistance and Support.......................... 27
User Facilities.................................................. 57
Who Controls the Hydrogen Initiative?............................ 45
World Nuclear Power Plants Under Construction On Order........... 35
Yucca Mountain................................................... 42
Office of Science
Additional Committee Questions................................... 44
Advanced Scientific Computing Research........................... 18
Alaska Examination of Geothermal Sites........................... 55
Assistance to Alaska Companies................................... 55
Barter Arrangements.............................................. 52
Basic Energy Sciences............................................ 19
Biological and Environmental Research............................ 19
Biomass:
R&D and:
National Laboratories.................................... 53
Universities............................................. 54
Rationale for Cuts........................................... 59
Centers for Excellence in Hydrogen............................... 46
Ceramic Ion Transport Membranes Project.......................... 53
Evaluation of Renewable Energy Sources on Public Lands........... 55
Financial Assistance to Geothermal Development in Alaska......... 59
For Inspiration and Recognition of Science and Technology (FIRST) 57
Funding:
A Commercial Biomass Plant................................... 54
For Concentrating Solar Power................................ 58
Fusion Energy Sciences........................................... 19
Genome Science................................................... 34
Genomes to Life Program.......................................... 33
Genomics: GTL Facilities......................................... 59
High:
Energy Physics............................................... 20
Temperature Superconductor Program........................... 59
Hydrogen in the Pacific Northwest................................ 60
Idaho National Laboratory........................................ 49
Industry-Laboratory Cooperation.................................. 60
International Thermonuclear Experimental Reactor (ITER)..........44, 57
Iowa Environmental/Education Project............................. 57
Louisiana Energy Services--Enrichment............................ 51
National Renewable Energy Laboratory............................. 58
Nuclear Energy:
Budget....................................................... 47
Physics...................................................... 20
Technologies/Nuclear Power 2010.............................. 48
Office of Science Fiscal Year 2005 Budget Request................ 3
OMB Funding Request.............................................. 46
Pacific Northwest National Laboratory Facilities................. 29
Protein and Molecular Tags Facility.............................. 33
R&D vs. Funding for Demonstration Projects....................... 46
Radiopharmaceuticals............................................. 51
Renewable Energy Program in Alaska............................... 56
Safeguards and Security.......................................... 21
Science:
Laboratories Infrastructure.................................. 21
Plans and Priorities......................................... 17
Priorities................................................... 32
Program Direction............................................ 22
Programs..................................................... 18
Storage Centers.................................................. 46
Tidal Energy Projects Cost in Alaska............................. 56
Time Scale for Hydrogen in Northwest............................. 60
Twenty Year Facility Plan........................................ 44
Ultra High-Speed Super Computers................................. 60
University Programs.............................................. 50
User Facilities.................................................. 57
Who Controls the Hydrogen Initiative?............................ 45
Workforce Development for Teachers and Scientists................ 22
Z Machine Application to the Science Program..................... 32
DEPARTMENT OF THE INTERIOR
Bureau of Reclamation
Additional Committee Questions................................... 248
Addressing Long-standing Department Challenges................... 235
Budget Overview.................................................. 232
Bureau of Reclamation............................................ 233
California Bay-Delta Restoration................................. 230
Central:
Utah Project Completion Act.................................. 235
Valley Project Restoration Fund.............................. 230
Dakota Water Resources Act....................................... 251
Demonstrated Commitment and Accomplishments...................... 231
Desalination..................................................... 249
Fiscal Year 2005 Planned Activities.............................. 232
Five-Year Expenditures........................................... 254
Fort Yates Intake Structure Failure.............................. 251
Hydropower....................................................... 253
Investing in Conservation........................................ 237
Klamath Basin.................................................... 235
Pick-Sloan Hydropower............................................ 252
Policy and Administration........................................ 229
President's Management Agenda.................................... 230
Program Assessment Rating Tool (PART)............................ 230
Red River Valley Water Supply Project............................ 251
Site Security.................................................... 253
Title XVI Water Reclamation and Reuse Program..................249, 250
Water 2025....................................................... 248
And Related Resources........................................ 228
Title XVI.................................................... 249
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