[House Report 104-679]
[From the U.S. Government Publishing Office]




104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-679
_______________________________________________________________________


 
         ENERGY AND WATER DEVELOPMENT APPROPRIATIONS BILL, 1997

                                _______
                                

 July 16, 1996.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


    Mr. Myers, from the Committee on Appropriations, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 3816]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for energy and water development for the fiscal 
year ending September 30, 1997, and for other purposes.

                        INDEX TO BILL AND REPORT

_______________________________________________________________________


                                                            Page Number

                                                            Bill Report
I. Department of Defense--Civil:
        Corps of Engineers--Civil:
                Corps of Engineers civil works mission.....
                                                                      4
                General investigations.....................     2
                                                                      5
                Construction, general......................     4
                                                                     23
                Flood control, Mississippi River and 
                    tributaries, Arkansas, Illinois, 
                    Kentucky, Louisiana, Mississippi, 
                    Missouri, and Tennessee................     6
                                                                     35
                Operation and maintenance, general.........     7
                                                                     38
                Regulatory program.........................     8
                                                                     54
                Flood control and coastal emergencies......     8
                                                                     55
                Oil spill research.........................
                                                                     56
                General expenses...........................     8
                                                                     56
                Administrative provisions..................     9

                General provision..........................     9
                                                                     57
II. Department of the Interior:
        Central Utah Project completion account............    10
                                                                     59
        Bureau of Reclamation:
                General investigations.....................    11
                                                                     59
                Construction program.......................    12
                                                                     62
                Operation and maintenance..................    13
                                                                     68
                Bureau of Reclamation loan program account.    14
                                                                     69
                Central Valley Project restoration fund....    14
                                                                     71
                General administrative expenses............    15
                                                                     71
                Special funds..............................    15

                Administrative provision...................    16

III. Department of Energy:
        Introduction.......................................
                                                                     73
        Energy supply, research and development activities.    16
                                                                     76
        Uranium supply and enrichment activities...........    17
                                                                     86
        Uranium enrichment decontamination and 
            decommissioning fund...........................    18
                                                                     87
        General science and research activities............    18
                                                                     88
        Nuclear waste disposal fund........................    18
                                                                     89
        Departmental administration........................    19
                                                                     90
        Office of inspector general........................    20
                                                                     93
        Atomic energy defense activities:
                Weapons activities.........................    20
                                                                     94
                Defense environmental restoration and waste 
                    management.............................    21
                                                                     96
                Fixed asset acquisition account............
                                                                    103
                Other defense activities...................    22
                                                                    104
                Defense nuclear waste disposal.............    22
                                                                    109
        Power marketing activities:
                Alaska Power Administration................    22
                                                                    110
                Bonneville Power Administration............    23
                                                                    110
                Southeastern Power Marketing Administration    23
                                                                    111
                Southwestern Power Marketing Administration    23
                                                                    112
                Western Area Power Administration..........    24
                                                                    112
                Falcon and Amistad operating and 
                    maintenance fund.......................    25
                                                                    113
        Federal Energy Regulatory Commission...............    25
                                                                    113
IV. Independent agencies:
        Appalachian Regional Commission....................    26
                                                                    125
        Defense Nuclear Facilities Safety Board............    26
                                                                    125
        Delaware River Basin Commission....................
                                                                    126
        Interstate Commission on the Potomac River Basin...
                                                                    126
        Nuclear Regulatory Commission......................    27
                                                                    126
        Office of Inspector General........................    29
                                                                    128
        Nuclear Waste Technical Review Board...............    30
                                                                    128
        Susquehanna River Basin Commission.................
                                                                    129
        Tennessee Valley Authority.........................    30
                                                                    130
V. General Provisions......................................    31
                                                                    133
House Reporting Requirements...............................
                                                                    135

                Summary of Estimates and Recommendations

    The Committee has considered budget estimates which are 
contained in the Budget of the United States Government, 1997. 
The following table summarizes appropriations for fiscal year 
1996, the budget estimates, and amounts recommended in the bill 
for fiscal year 1997.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     1997 recommendation compared with--
                                                                  1996                                  1997       -------------------------------------
                                                             appropriation      1997 estimate      recommendation          1996                         
                                                                                                                      appropriation      1997 estimate  
--------------------------------------------------------------------------------------------------------------------------------------------------------
Title I--Department of Defense--Civil....................      3,366,272,000      3,292,850,000      3,449,192,000        +82,920,000       +156,342,000
Title II--Department of the Interior.....................        853,342,000        843,808,000        838,341,000        -15,001,000         -5,467,000
Title III--Department of Energy..........................     15,404,490,000     16,182,494,000     15,279,926,000       -124,564,000       -902,568,000
Title IV--Independent Agencies...........................        311,550,000        329,800,000        281,531,000        -30,019,000        -48,269,000
                                                          ----------------------------------------------------------------------------------------------
      Subtotal...........................................     19,935,654,000     20,648,952,000     19,837,680,000        -97,974,000       -811,272,000
Scorekeeping adjustments.................................       -609,343,000       -428,000,000       -428,000,000       +181,343,000  .................
                                                          ----------------------------------------------------------------------------------------------
      Grand total of bill................................     19,326,311,000     20,220,952,000     19,420,990,000        +94,679,000       -799,962,000
--------------------------------------------------------------------------------------------------------------------------------------------------------

                              Introduction

    With the Energy and Water Development Appropriations Bill, 
1997, the Committee continues to deliver on its commitment to 
effect substantial cost savings, structural deficit reduction, 
and significant governmental reforms. At $19.4 billion in new 
budget authority, new spending in the bill is more than $1 
billion below that of the Energy and Water Development Bill 
passed by Congress just two years ago. Because the Committee 
has made the substantial investments necessary to protect, 
improve and reconfigure our atomic energy defense 
infrastructure, savings in domestic discretionary programs are 
particularly pronounced. Total funding for these programs has 
been reduced by over sixteen percent in just two years. 
Furthermore, the Committee has achieved these savings without 
gimmicks, accounting tricks or one-time devices.
    Although budget savings in the bill are dramatic, they are 
realized without inflicting damage on high-priority programs 
and activities in which Federal investment is most appropriate. 
Indeed, the Committee has endeavored to: protect its previous 
investments in water and energy infrastructure; provide 
sufficient funding to operate and maintain critical facilities 
and programs within the Subcommittee's jurisdiction; and 
achieve further savings through accelerated completion of 
various projects currently in the construction pipeline.
    Demands on the Energy and Water Development Bill have been 
extraordinary this year. The Committee conducted a series of 
hearings on the 1997 bill, which is recorded in eight separate 
volumes containing more than 13,000 pages. Moreover, Members of 
Congress from forty-eight states and Puerto Rico have 
communicated over 2,300 discrete priorities for the bill. The 
Committee has done its best to balance these requests against a 
limited allocation of resources; nevertheless, the Committee 
acknowledges that the imperative of deficit reduction has 
resulted in reluctant rejection of many such requests.
    Authorization for various projects and agencies funded by 
this bill is in various stages of the legislative process. The 
Committee has worked closely with jurisdictional committees to 
establish the funding levels recommended in the bill. Funding 
has been provided for certain programs in anticipation and 
advance of authorization in order to avoid unnecessary 
disruptions in the provision of government services.

                                TITLE I

                      DEPARTMENT OF DEFENSE--CIVIL

                         Department of the Army

                       Corps of Engineers--Civil

                corps of engineers' civil works mission

    In the fiscal year 1996 budget request, the Administration 
proposed radical changes in the Civil Works mission of the U.S. 
Army Corps of Engineers. Those proposals were rejected by the 
Congress as being counterproductive to the well-being of the 
Nation.
    The Committee is pleased that the Administration has 
abandoned the proposal made last year that would have all but 
ended the Corps of Engineers' role in protecting our citizens 
from the devastating impacts of floods. However, the Committee 
is extremely troubled that the Administration has again 
proposed that the Federal Government's role in shore protection 
projects and smaller navigation projects be terminated.
    Shore protection projects serve the same function as other 
flood control projects--they protect lives and property from 
the impacts of flooding. The only difference is that for shore 
protection projects, the flood waters come from the oceans, the 
Gulf of Mexico, or the Great Lakes, rather than from rivers. 
Through this proposal, the Administration has determined that 
all Americans are eligible for flood protection assistance 
except those who live along our coastlines. The Committee notes 
that the Administration's proposal would permit Federal 
involvement in those cases where the project does not rely on 
the placement of sand. The Committee, however, can find no 
logic in a policy that permits one community to be protected if 
the appropriate engineering solution is the construction of a 
seawall, but allows another to go unprotected simply because 
the appropriate solution is a protective structure constructed 
of sand.
    Therefore, the Committee has included funds in the bill for 
continued construction of shore protection projects, the 
periodic nourishment of previously constructed projects, and 
the continuation of ongoing studies related to shore 
protection. The Committee expects the Secretary of the Army, 
acting through the Chief of Engineers, to proceed with those 
projects, all of which are fully authorized. The Committee 
further directs the Secretary of the Army and the Chief of 
Engineers to continue to process all decision documents, 
including the transmission of feasibility reports to the 
Congress for authorization and reports prepared under section 
934 of the Water Resources Development Act of 1986, without 
regard to whether or not projects comply with the 
Administration's proposed new policies.
    The Committee also remains concerned about the 
Administration's plans to stop requesting funds for the 
maintenance of smaller navigation projects beginning in fiscal 
year 1998. Failure to adequately maintain those projects will 
cause economic hardship for many communities throughout the 
nation and result in hazardous navigation conditions that could 
directly lead to the loss of life and property. The Committee 
expects the Administration to continue to request adequate 
funds for maintenance of these projects.

                         general investigations

Appropriation, 1996.....................................    $121,767,000
Budget Estimate, 1997...................................     142,500,000
Recommended, 1997.......................................     153,628,000
Comparison:
    Appropriation, 1996.................................     +31,861,000
    Budget Estimate, 1997...............................     +11,128,000

    The budget request and the approved Committee allowance are 
shown on the following table:



    Alabama River below Claiborne Lock and Dam, Alabama.--The 
bill includes $250,000, the same as the budget request, to 
continue the study of ways to improve the reliability of the 
authorized 9-foot navigation channel in the Alabama River below 
Claiborne Lock and Dam. The Committee is aware that studies to 
date indicate that an additional lock and dam is not a feasible 
alternative and, therefore, directs that the Corps use the 
funds provided to investigate other alternatives to improve the 
reliability of the navigation channel.
    Jefferson County, Alabama.--Within available funds, 
$300,000 is provided for a study to address flooding and 
related water resources problems in the Cahaba River Basin in 
Jefferson County, Alabama.
    Aleutian Islands, Alaska.--The Committee has provided 
$100,000 for the Corps of Engineers to initiate a comprehensive 
evaluation of the Aleutian Islands region in order to determine 
the extent of a Federal interest in a regional network of small 
ports and harbors along the Aleutian Islands.
    Rio Salado Watershed Ecosystem, Arizona.--The Committee has 
included $500,000, the same as the budget request, to continue 
work on the Rio Salado feasibility study in cooperation with 
the cities of Phoenix and Tempe. The Committee directs that the 
Corps of Engineers accelerate work on the study to the extent 
possible in order to allow completion of the study by the 
beginning of fiscal year 1998.
    Tres Rios, Arizona.--The Committee has provided $200,000 
for the Corps of Engineers to continue the study of the flood 
control aspects of the Tres Rios Wetlands Demonstration project 
being developed by the Bureau of Reclamation in cooperation 
with the cities of Phoenix, Tempe, Mesa, Glendale, and 
Scottsdale as authorized by section 321 of the Water Resources 
Development Act of 1992. Under that authority, the Corps of 
Engineers is responsible for the planning, design, and 
construction of flood damage reduction features of the project, 
including channel clearing within the floodway to protect the 
constructed wetlands project, and levee construction to protect 
the surrounding residential properties near the confluence of 
the Salt and Gila Rivers.
    Central Basin Groundwater Project, California.--The 
Committee has provided $363,000, the same as the budget 
request, for the Corps of Engineers to complete the feasibility 
study for the Central Basin Groundwater project. The study will 
identify and recommend remediation measures to address 
contamination within and down gradient of existing Federal 
facilities at Whittier Narrows Dam.
    Cities of Arcadia and Sierra Madre Water Infrastructure 
Restoration Study, California.--The Committee has provided 
$300,000 for the Corps of Engineers to continue a special study 
to identify problems and alternative solutions, including 
governmental roles and responsibilities, for providing a more 
dependable water supply for the Cities of Arcadia and Sierra 
Madre, particularly with respect to minimizing damages to the 
water system that might occur during an earthquake.
    City of Huntington Beach, California.--The Committee has 
provided $450,000 for the Corps of Engineers to conduct a study 
to identify problems and alternative solutions, including 
governmental roles and responsibilities, for providing a more 
dependable water supply for the City of Huntington Beach, 
particularly with respect to minimizing damages to the water 
system that might occur during an earthquake.
    City of Santa Monica, California.--The Committee has 
provided $400,000 for the Corps of Engineers to conduct a study 
to identify problems and alternative solutions, including 
governmental roles and responsibilities, for providing a more 
dependable water supply for the City of Santa Monica, 
particularly with respect to minimizing damages to the water 
system that might occur during an earthquake.
    Crescent City Harbor, California.--The bill includes 
$495,000, the same as the budget request, for preconstruction 
engineering and design of the Crescent City Harbor deepening 
project. The work of the Corps of Engineers at Crescent City is 
a further example of the importance of a continuing Federal 
presence in smaller harbors.
    Dry Creek (Middletown), California.--The Committee has 
provided $300,000 for the Corps of Engineers to update its 
earlier study of the flood control problems along Dry Creek 
near Middletown, and to perform the necessary environmental 
review.
    Kaweah River, California.--The Committee has provided 
$1,000,000 for the Kaweah River project, $400,000 above the 
budget request, in order to maintain an optimum schedule for 
preconstruction engineering and design for the project to 
enlarge Terminus Dam in California.
    Malibu Coastal Area, California.--The Committee has 
provided $200,000 for the Corps of Engineers to initiate the 
feasibility study of the need for shoreline protection measures 
along the Malibu coastal area.
    Napa River, California.--The Committee has provided 
$1,000,000, $300,000 above the budget request, to complete the 
design and environmental review and to finalize the Project 
Cooperation Agreement for the Napa River flood control project. 
The Committee believes the additional funds are appropriate to 
address all concerns that have been raised in the recent 
reevaluation of the project and to affirm the flood control 
effort.
    Napa River Salt Marsh Restoration and Russian River 
Ecosystem Restoration, California.--The Committee has provided 
$377,000 for the Napa River Salt Marsh Restoration study and 
$386,000 for the Russian River Ecosystem Restoration study, the 
same as the amounts included in the budget request. The 
Committee is pleased that the Corps is continuing these 
efforts, which were initiated by the Congress in fiscal year 
1996.
    Norco Bluffs, California.--The bill includes $180,000 for 
the Corps of Engineers to initiate preconstruction engineering 
and design for the Norco Bluffs, California, project.
    Northern California Streams, Colusa Basin Drainage Systems, 
California.--The Committee has provided $300,000 for the Corps 
of Engineers to initiate a reconnaissance study of flood 
control problems along the Colusa Basin Drain and its 
tributaries.
    Northern California Streams, Middle Creek, California.--The 
Committee concurs with Administration's request and has 
included $410,000 for the Corps of Engineers to continue its 
study of alternatives to restore the natural functions of the 
Middle Creek/Clear Lake ecosystem, including the restoration of 
wetlands at the historic Robinson Lake.
    Noyo Harbor Breakwater, California.--The Committee has 
included $300,000 for the Corps of Engineers to complete the 
General Design Memorandum for the Noyo Harbor Breakwater, 
California, project. While work on the project was previously 
suspended when the local sponsor indicated difficulty raising 
the non-Federal share of project costs, a number of boats have 
been lost in the past year, with attendant loss of life. This 
has led to renewed efforts by the Harbor Commission and City of 
Fort Bragg to identify additional local funding sources. Funds 
were included in the fiscal year 1996 Energy and Water 
Development Appropriations Act for the Corps of Engineers to 
evaluate a proposal to utilize prefabricated structures in lieu 
of a stone breakwater. Given the continued loss of life and 
property, the Committee believes that the Corps should complete 
the General Design Memorandum for either the original stone 
breakwater or prefabricated structures at the same time as 
local funding sources are identified.
    Sacramento River Watershed Management Plan, California.--
The Committee has provided $300,000 for the Corps of Engineers 
to initiate a comprehensive review of the watershed of the 
Sacramento River and its tributaries.
    San Joaquin River Basin, Caliente Creek, California.--The 
bill includes $150,000 for the Corps of Engineers to complete, 
during fiscal year 1997, the Caliente Creek feasibility study.
    San Joaquin River Basin, Stockton Metropolitan Area, 
California.--The Committee has provided $540,000, the same as 
the budget request, to continue the reconnaissance study for 
flood damage protection for the Stockton metropolitan area, and 
flood control, water supply, and water storage at Farmington 
Dam.
    San Joaquin River Basin, West Stanislaus County, 
California.--The Committee has provided $400,000 for the Corps 
of Engineers to initiate a reconnaissance investigation for 
flood control, environmental restoration, and related purposes 
for Salado Creek in Stanislaus County, California.
    Santa Margarita River and Tributaries, California.--The 
Committee has provided $375,000 for the Corps of Engineers to 
initiate a reconnaissance study to examine watershed management 
needs, including flood control, environmental restoration, 
stormwater retention, water conservation and supply, and 
recreation along the Santa Margarita River and its tributaries, 
including Murrieta Creek, in Riverside and San Diego Counties, 
California.
    Ventura and Santa Barbara County Shoreline, California.--
The Committee has provided an additional $48,000 to initiate 
the feasibility study for the Ventura and Santa Barbara County 
Shoreline project.
    Dade County Water Reuse Facility, Florida.--The bill 
includes $425,000 for the Corps of Engineers to complete the 
reconnaissance report and initiate the feasibility study for 
the Dade County Water Reuse project in Florida.
    St. Johns River, Florida.--The Committee has provided 
$400,000 for the Corps of Engineers to continue the study of 
water quality management within the St. Johns River basin in 
Florida.
    Tampa Harbor, Alafia Channel, Florida.--The Committee has 
provided $200,000 for the Corps of Engineers to continue the 
feasibility study of the need for deepening of the Alafia 
Channel in Tampa Harbor.
    Lake George, Hobart, Indiana.--The Committee has provided 
$100,000 for the Corps of Engineers to complete plans and 
specifications for the Lake George, Hobart, Indiana, project.
    Little Calumet River Basin, Cady Marsh Ditch, Indiana.--The 
Committee has provided $200,000 for the Corps of Engineers to 
continue preconstruction engineering and design for the Little 
Calumet River Basin, Cady Marsh Ditch, project.
    Tippecanoe River, Indiana.--The Committee has provided 
$200,000 for the Corps of Engineers to undertake a study of 
sedimentation problems and ecosystem restoration opportunities 
at Lakes Shafer and Freeman on the Tippecanoe River.
    Wabash River Basin (Middle Reaches), Indiana and 
Illinois.--The Committee has provided $200,000 for the Corps of 
Engineers to continue the feasibility study at Greenfield Bayou 
in Vigo County, Indiana.
    Kentucky Lock, Kentucky.--The Committee has provided 
$3,000,000, the same as the budget request, for the Corps of 
Engineers to continue preconstruction engineering and design of 
the Kentucky Lock addition project.
    Lower Cumberland River, Kentucky.--The Committee has 
provided $150,000 for the Corps of Engineers to undertake a 
study of the streambank erosion and navigation problems on the 
Lower Cumberland River associated with the rapid rise and fall 
of water surface elevations resulting from hydroelectric power 
generation.
    Baltimore Harbor Anchorages and Channels, Maryland.--The 
Committee has provided $529,000, the same as the budget 
request, to complete the feasibility study and initiate 
preconstruction engineering and design for the Baltimore Harbor 
Anchorages and Channels project. The Committee notes the delay 
since last year in completing the study and urges the Corps to 
accelerate its completion in order to initiate PED at the 
earliest possible date.
    Baltimore Harbor and Channels, Tolchester Channel S-Turn, 
Maryland.--Within available funds, the Committee directs the 
Corps of Engineers to complete design work associated with 
correcting the dangerous S-turn in the Tolchester Channel.
    Jackson County, Mississippi.--The Committee has provided 
$200,000 for the Corps of Engineers to provide technical 
assistance for the project to provide an alternative water 
supply for Jackson County, Mississippi, as authorized by 
section 219 of the Water Resources Development Act of 1992.
    Fabius River Levee and Drainage District, Missouri.--The 
Committee is aware of the need to conduct a study to review, 
update and revise, as appropriate, the flow-frequency curves 
prepared by the Corps of Engineers for the upper and middle 
reaches of the Mississippi River, including the lower Missouri 
and Illinois Rivers. In order to accomplish this work, the 
Corps of Engineers may utilize funds previously appropriated 
and appropriated in this Act for the Fabius River Levee and 
Drainage District project. The work should include an 
examination of flow records of the river, a review of existing 
flow-frequency data, and development of a scope of work for 
additional efforts if needed.
    Barnegat Inlet to Little Egg Harbor Inlet, New Jersey.--The 
bill includes $558,000 to continue the feasibility study for 
the Barnegat Inlet to Little Egg Harbor Inlet project.
    Brigantine Inlet to Great Egg Harbor Inlet, New Jersey.--
The Committee has provided an additional $440,000 for the Corps 
of Engineers to initiate preconstruction engineering and design 
for the Brigantine Inlet to Great Egg Harbor Inlet project.
    Great Egg Harbor Inlet to Townsends Inlet, New Jersey.--The 
Committee has provided $400,000 for the Corps of Engineers to 
initiate the feasibility study for the Great Egg Harbor Inlet 
to Townsends Inlet, New Jersey, project.
    Manasquan Inlet to Barnegat Inlet, New Jersey.--The 
Committee has provided $400,000 for the Corps of Engineers to 
initiate the feasibility study for the Manasquan Inlet to 
Barnegat Inlet, New Jersey, project.
    New Jersey Intracoastal Waterway, New Jersey.--The 
Committee has provided $200,000 for the Corps of Engineers to 
initiate a study to address environmental restoration 
opportunities along the New Jersey Intracoastal Waterway.
    Raritan Bay and Sandy Hook Bay, New Jersey.--The Committee 
has included a total of $725,000 for the Corps of Engineers to 
continue the study of hurricane and storm damage reduction 
improvements for Raritian Bay and Sandy Hook Bay in New Jersey. 
Included in that amount is $135,000 for completion of the 
reconnaissance study and initiation of the feasibility study 
for the Cliffwood Beach portion of the project. The Committee 
directs the Corps of Engineers to undertake the work associated 
with Cliffwood Beach as part of the overall Raritan Bay and 
Sandy Hook Bay project.
    Townsends Inlet to Cape May Inlet, New Jersey.--The bill 
includes an additional $330,000 for the initiation of 
preconstruction engineering and design for the Townsends Inlet 
to Cape May Inlet project.
    North Shore of Long Island, New York.--The Committee has 
provided $250,000 for the Corps of Engineers to initiate the 
feasibility study for the North Shore of Long Island, New York, 
project.
    South Shore of Staten Island, New York.--The Committee has 
provided $300,000 to continue the feasibility study for the 
South Shore of Staten Island, New York, project.
    Cleveland Harbor, Ohio.--The Committee has provided 
$500,000 for the Corps of Engineers to continue the Cleveland 
Harbor Federal Navigation Channel Bulkheading study.
    Mussers Dam, Snyder County, Pennsylvania.--The Committee 
has provided $450,000 for completion of preconstruction 
engineering and design for the Mussers Dam, Middle Creek, 
Snyder County, Pennsylvania, project.
    Black Fox, Murfree, and Oakland Springs Wetlands, 
Tennessee.--The Committee has provided $435,000 for the Corps 
of Engineers to complete preconstruction engineering and design 
of the Black Fox, Murfree, and Oaklands Springs Wetlands 
project in Murfreesboro, Tennessee.
    Colonias Along the U.S.-Mexico Border, Texas and Arizona.--
The Committee has provided an additional $200,000 for the Corps 
of Engineers to provide water-related environmental 
infrastructure planning and technical assistance to the 
Littletown and San Luis Colonias in Arizona.
    Lower Rio Grande Basin, Texas.--The Committee has provided 
$150,000 for preconstruction engineering and design of the 
Raymondville Drain feature of the Lower Rio Grande Basin, 
Texas, project.
    Upper Jordan River Restoration, Utah.--The Committee has 
provided $500,000 for the Corps of Engineers to initiate a 
reconnaissance study of environmental restoration opportunities 
along the upper Jordan River in Utah.
    Powell River Watershed, Virginia.--The Committee has 
provided $250,000 for the Corps of Engineers to undertake an 
ecosystem and environmental restoration and flood control study 
of the Powell River Watershed.
    Flooding in Eastern Washington.--The Committee urges the 
Corps of Engineers to work with the city and county governments 
within eastern Washington that were affected by the February 
1996 floods to mitigate flood related silting and flood damage. 
Furthermore, the Committee urges the Corps of Engineers to give 
full consideration to each city and county's request for 
recommendations for the prevention and management of future 
flooding.
    Monongahela River, West Virginia.--The Committee has 
provided $500,000 for the Corps of Engineers to initiate 
preconstruction engineering and design activities at the 
Palatine Park, Pricketts Fort, Morgantown, and Rail to Trail 
Corridor sites.
    Monongahela River (Fairmont), West Virginia.--The Committee 
has provided $250,000 for the Corps of Engineers to undertake a 
reconnaissance study of the potential for waterfront 
development at the CSX site adjacent to the Monongahela River 
in Fairmont, West Virginia.
    Tygart River Basin (Philippi), West Virginia.--The 
Committee has provided $250,000 for a reconnaissance study of 
potential non-structural projects to reduce flood damages in 
the vicinity of Philippi in Barbour County, West Virginia.
    Coordination Studies with Other Agencies.--The amount 
provided for Coordination Studies with Other Agencies includes 
$480,000 for Cooperation with Other Agencies, $2,000,000 for 
the Planning Assistance to States program, $1,300,000 for 
Special Investigations, and $500,000 for the Interagency Water 
Resources Development program.
    Section 22 Planning Assistance to the States.--Within the 
funds provided for the Section 22 Planning Assistance to States 
program, the Committee expects the Corps of Engineers to work 
with the Riverside County Flood Control and Water Conservation 
District to develop a floodplain maintenance plan for Murrieta 
Creek in California, and the San Bernardino County Flood 
Control District to develop a floodplain management plan for 
the Mojave River in California.
    Research and Development.--The Committee has provided 
$300,000 to continue the Corps of Engineers Construction 
Technology Transfer Project.
    The Committee is aware of passive cathodic protection 
systems and their potential for protecting Corps of Engineers 
projects from underwater corrosion. The Committee urges the 
Corps to consider demonstrating this technology on Corps' 
structures. In addition, the Committee is aware that in 
response to the devastating Midwest floods of 1993, the 
Institute of Hydraulic Research at the University of Iowa, in 
cooperation with private industry, has begun development of the 
Comprehensive Flood Impact-Response Modeling System (CFIRMS), 
which would utilize supercomputers to provide models for 
watershed management nationwide. Given the importance of the 
project and the academic and private resources already 
committed to it, the Committee believes the Corps of Engineers 
should consider participating in the development of CFIRMS.
    Use of Private Sector for Planning, Engineering, and 
Design.--The Committee is aware of recent efforts by the Corps 
of Engineers to increase the use of the private sector in 
performing planning, engineering and design work for Corps' 
projects. However, the Committee believes that the Corps of 
Engineers needs to intensify those efforts. The Committee 
expects the Corps, in those instances where a district office 
has not obtained the goal of having the private sector perform 
at least 50% of planning, engineering and design work for 
projects in that district, to increase private sector 
contracting by 10% in fiscal year 1997 and in each subsequent 
fiscal year until the level of work contracted to the private 
sector reaches at least 50%. It is not the Committee's intent 
that the Corps reduce contracting levels in those offices that 
are already conducting more than 50% of planning, engineering 
and design work with the private sector. Contracting with the 
private sector shall continue to be conducted in compliance 
with the normal qualification based selection process found in 
40 U.S.C. 541-544.

                         Construction, General

Appropriation, 1996.....................................    $804,573,000
Budget Estimate, 1997...................................     914,000,000
Recommended, 1997.......................................   1,035,394,000
Comparison:
    Appropriation, 1996.................................    +230,821,000
    Budget Estimate, 1997...............................    +121,394,000

    The budget request and the approved Committee allowance are 
shown on the following table:


    Montgomery Point Lock and Dam, Arkansas.--The Committee has 
provided $8,000,000 for the Corps of Engineers to continue work 
on the Montgomery Point Lock and Dam project in Arkansas. The 
Committee notes that the Montgomery Point Lock and Dam project 
was authorized by the River and Harbor Act of 1946, prior to 
creation of the Inland Waterways Trust Fund. Therefore, the 
Committee has deleted language proposed by the Administration 
that would have authorized the use of the Inland Waterways 
Trust Fund for construction of the Montgomery Point Lock and 
Dam. The Committee expects that the Administration will 
continue to budget for this project without cost-sharing from 
the Inland Waterways Trust Fund.
    Humboldt Harbor and Bay, California.--The Committee has 
included $3,000,000 to initiate deepening of Humboldt Harbor 
and Bay. The funds are included in anticipation of enactment of 
the authorization for the project, which has been included by 
the Committee on Transportation and Infrastructure in the Water 
Resources Development Act of 1996, as reported to the House.
    Klamath-Glen Levee Repairs, California.--The Committee 
commends the Corps of Engineers for its decision to proceed 
with repairs of Klamath-Glen levee design deficiencies under 
the same financial terms as the original project construction. 
The South Pacific Division acted with dispatch to address the 
concerns of Del Norte County officials about the repair 
project. The agreement between the Corps and County officials 
reflects the Committee's understanding that the Corps will 
continue to be responsible for correcting any design 
deficiencies in the project. The Committee is hopeful the 
repairs will proceed promptly, before this year's rainy season.
    Lower Sacramento Area Levee Reconstruction, California.--
The Committee has provided $500,000, $450,000 above the budget 
request, to continue construction of the Lower Sacramento Area 
Levee Reconstruction project.
    Mid-Valley Area Levee Reconstruction, California.--The 
Committee has provided $2,500,000 for the high priority Mid-
Valley Area Levee Reconstruction project, an increase of 
$2,400,000 over the amount included in the budget request.
    Sacramento River Flood Control Project (Glenn-Colusa 
Irrigation District), California.--As requested in the budget, 
the Committee has provided $2,000,000 for the Corps of 
Engineers to continue work on the riffle restoration project, 
which is an integral part of the effort to develop a long-term 
solution to the fish passage problem at the Hamilton City 
Pumping Plant. It is the Committee's intent that the Corps of 
Engineers participate in, and, when necessary, provide direct 
support to, this important state-Federal effort.
    San Timoteo Creek (Santa Ana River Mainstem), California.--
The bill includes $7,000,000 for the Corps of Engineers to 
continue construction of the San Timoteo Creek feature of the 
Santa Ana River Mainstem project in California.
    Silver Strand Shoreline, Imperial Beach, California.--The 
bill includes $400,000 for a General Reevaluation Report for 
shore protection improvements along the Silver Strand Shoreline 
in Imperial Beach, California.
    Faulkner's Island, Connecticut.--Within available funds, 
the committee provides $2,000,000 for the Faulkner's Island 
beach erosion control project, Faulkner's Island, Connecticut.
    Canaveral Harbor Sand Bypass, Florida.--The Committee has 
provided $4,000,000 to complete the initial sand bypassing for 
the Canaveral Harbor, Florida, project.
    Ft. Pierce Beach, Florida.--The Committee has provided 
$3,300,000 for renourishment of the Ft. Pierce Beach project in 
Florida. The Committee is aware that a section 934 report 
recommending the extension of Federal participation in this 
project to the year 2020 was completed in June of 1995 but has 
not received final approval because of the Administration's 
proposal to terminate the Corps of Engineers role in shore 
protection projects. In light of the Congress' rejection of 
that proposal, the Committee expects Corps of Engineers and the 
Assistant Secretary of the Army for Civil Works to complete the 
processing of that report. In addition, $200,000 has been 
provided for the Corps of Engineers to undertake a General 
Reevaluation Report that will examine the feasibility of 
extending the project.
    Lee County, Florida.--The bill includes $1,211,000 for 
reimbursement of the Federal share of costs for the 
renourishment of the Captiva Island segment of the Lee County, 
Florida, project. In addition, the Committee has provided 
$300,000 to complete the General Reevaluation Report for the 
Estero and Gasparilla Islands segment of the Lee County, 
Florida, project.
    St. Johns County (St. Augustine Beach), Florida.-- The 
Committee has provided $300,000 for completion of the General 
Reevaluation Report for the St. Johns County (St. Augustine 
Beach), Florida, project.
    Tybee Island, Georgia.--The bill includes $4,665,000 for 
the renourishment of the Tybee Island, Georgia, project.
    McCook and Thornton Reservoirs, Illinois.--The Committee is 
in agreement with the Corps of Engineers plan to use $6,655,000 
in previously appropriated funds to continue the McCook and 
Thornton Reservoirs project in Illinois.
    Burns Waterway Harbor (Major Rehabilitation), Indiana.--The 
Committee has provided an additional $190,000 to construct 
access for the disabled at a jetty construction project 
currently underway at the harbor.
    Indiana Shoreline Erosion, Indiana.--The bill includes 
$2,200,000 for the Corps of Engineers to continue construction 
of the Indiana Shoreline Erosion project.
    Ohio River Flood Protection, Indiana.--The bill includes 
$1,800,000 to continue construction of the Ohio River Flood 
Protection project in Indiana. The Committee has also included 
language in the bill directing the Secretary of the Army to 
utilize the $1,000,000 provided in the fiscal year 1996 Energy 
and Water Development Appropriations Act for construction of 
the Ohio River Flood Protection project for that purpose.
    Des Moines Recreational River and Greenbelt, Iowa.--The 
Committee has included language in the bill that directs the 
Corps of Engineers, in cooperation with state, county, and city 
governments and in consultation with the Des Moines River 
Greenbelt Advisory Committee, to provide highway and other 
signs appropriate to direct the public to the bike trail which 
runs from downtown Des Moines to the Big Creek Recreation area 
at the Corps of Engineers Saylorville Lake project and the 
wildlife refuge in Jasper and Marion Counties in Iowa 
authorized in Public Law 101-302.
    Missouri River Levee System, Iowa, Nebraska, Kansas, and 
Missouri.--The bill includes $200,000, the same as the budget 
request, for the Corps of Engineers to continue engineering and 
design of the Unit L-385 levee. However, the Committee is 
concerned about impact of the project on other flood control 
levees in the vicinity and, within the funds provided, directs 
the Corps of Engineers to undertake a study of the increase in 
Missouri River elevations that will occur as a result of levee 
construction and the impact of that increase on nearby flood 
control levees. The Committee has provided an additional 
$250,000 for the Corps of Engineers for a General Reevaluation 
Report and engineering and design for Unit L-15 of the Missouri 
River Levee System project.
    Salyersville, Kentucky.--The bill includes $3,500,000 for 
the Corps of Engineers to continue work on the cut-through 
project for the City of Salyersville, Kentucky.
    Lake Pontchartrain and Vicinity (Hurricane Protection), 
Louisiana.--The bill includes $18,525,000 to continue 
construction of the Lake Pontchartrain and Vicinity hurricane 
protection project. Of the amount provided above the budget 
request, $4,500,000 shall be used for levee raising and 
landslide runoff control for Jefferson Parish lakefront levees 
and $10,000,000 shall be used to continue construction of 
parallel protection along the Orleans and London Avenue outfall 
canals, including studying the feasibility of using a levee 
gate where Lakeshore Drive crosses London Avenue Canal at the 
entrance to the University of New Orleans.
    Red River Waterway, Louisiana.--The Committee has provided 
an additional $2,075,000 for the Red River Waterway project to 
be used for construction of the Eagle Bend Capout.
    Red River below Denison Dam Levee and Bank Stabilization, 
Louisiana, Arkansas, and Texas.--The Committee has included 
$100,000 in the bill for the Red River below Denison Dam Levee 
and Bank Stabilization project to continue the Bowie County 
Levee, Texas, portion of the project. The Committee directs the 
Secretary of the Army, acting through the Chief of Engineers, 
to continue to prepare plans and specifications for restoration 
or replacement of the Bowie County Levee, as authorized by the 
Flood Control Act of 1946, for incorporation into the Federal 
levee system, to provide the same level of protection as the 
adjoining Miller County Levee in Arkansas under the terms and 
conditions of section 3 of the Flood Control Act of 1936.
    Poplar Island, Maryland.--The Administration has proposed 
to construct the Poplar Island dredged material disposal 
facility under the provisions of section 204 of the Water 
Resources Development Act of 1992, which authorizes the 
Secretary of the Army to carry out projects for the protection, 
restoration, and creation of aquatic habitats in connection 
with dredging for construction or maintenance of authorized 
navigation projects. The authority to carry out projects under 
section 204, however, is limited to $15,000,000 per year. 
Therefore, the Committee has provided $15,000,000 for the 
project in fiscal year 1997.
    Sandy Hook to Barnegat Inlet Beach Erosion Control Project, 
New Jersey.--It is the intent of the committee that within 
available funds for construction of the Sandy Hook to Barnegat 
Inlet beach erosion project, construction be continued on 
section I, contract 2 (Monmonth Beach-Long Branch border to 
Lake Takanasee) and section II, contract 1 (Shark River Inlet 
to Manasquan) and that construction begin on section 1, 
contract 3 (Lake Takanasee to Deal Lake) and section II, 
contract 1 (Asbury Park to Shark River Inlet).
    Acequias Irrigation System, New Mexico.--The Committee has 
provided $300,000, the same as the budget request, for the 
Acequias Irrigation System project in New Mexico. These funds, 
combined with $1,176,000 in programmed carryover, will provide 
a total of $1,476,000 for acequia rehabilitation projects in 
fiscal year 1997. The Committee directs the Corps of Engineers 
to work more closely with acequia members in order to 
accelerate the number of acequia projects undertaken and 
encourages the Corps to work with acequia members to permit 
them to perform some of their own repairs.
    Fire Island Inlet to Jones Inlet, New York.--The Committee 
has provided $4,471,000 to the Corps of Engineers for dredging 
of Fire Island Inlet and the placement of the material on Gilgo 
Beach.
    New York City Watershed, New York.--The Committee is aware 
of ongoing efforts at the State and local level to develop a 
management plan for the 2,000 square mile watershed that 
supplies drinking water for the City of New York. The Committee 
urges the Corps of Engineers to utilize its expertise in dam 
and reservoir management and water quality monitoring to assist 
in that effort, which is essential to protect the drinking 
water supply for the 9 million people who live in the New York 
metropolitan area.
    Lackawanna River, Scranton, Pennsylvania.--The Committee 
has provided an additional $600,000 for preconstruction 
engineering and design of the project to provide flood control 
for the Plot and Greenridge sections of Scranton, Pennsylvania.
    South Central Pennsylvania Environmental Restoration 
Infrastructure and Resource Protection Development Pilot 
Program, Pennsylvania.--The bill includes $10,000,000 for the 
Corps of Engineers to continue work on the South Central 
Pennsylvania Environmental Restoration Infrastructure and 
Resource Protection Development Pilot Program authorized by 
section 313 of the Water Resources Development Act of 1992. 
Within the funds provided, the Committee directs the Corps to 
provide assistance to the Chestnut Ridge Area Joint Municipal 
Authority for the design and construction of public sewer 
projects. In fiscal year 1995, the Committee directed that 
funding provided for this program was to be used to design and 
construct a sewer management system for Broad Top Township and 
Coaldale Borough. Those funds may also be used for watershed 
reclamation projects included as part of the Broad Top Township 
and Coaldale Borough sewer management system. In addition, the 
Committee directs that funds provided for this program in 
fiscal year 1996 be used for the following projects: Hyndman 
Levee Project, Bedford County, Pennsylvania ($1,000,000); 
Guilford Township Water Line, Franklin County, Pennsylvania 
($330,000); and Blair County Airport Industrial Development 
Sewer and Water Line, Martinsburg, Pennsylvania ($320,000).
    Richmond Filtration Plant, Virginia.--The bill includes 
$3,500,000 to complete construction of the Richmond Filtration 
Plant flood control project in Virginia.
    Columbia River Juvenile Fish Mitigation, Washington, 
Oregon, and Idaho.--Last year the Committee referred to this 
program as ``a black hole for money.'' That characterization 
was based on two concerns. First, the total estimated cost of 
the program had grown from $345,000,000 in fiscal year 1994 to 
$583,600,000 in fiscal year 1996. Second, in spite of the 
enormous sums of money being spent on the program, there 
appeared to be no consensus among all the parties involved in 
the effort about what needed to be done to restore the salmon 
runs. This year, the Corps of Engineers estimates that the 
total cost of this program will be almost $1,400,000,000 and 
there still appears to be no consensus about what steps need to 
be taken to restore the salmon runs. In a response to a 
question at this year's hearings about the changing cost of the 
program, the Corps of Engineers North Pacific Division Engineer 
stated that ``the total cost will be relatively firm when final 
decisions are made on the long-term configuration and operation 
of the Federal Columbia River Power System to restore 
anadromous fish runs. At this time, we expect these decisions 
to be made near the turn of the century.'' The Committee 
believes that it would be appropriate to slow down spending for 
this program until a definite plan for recovery of the fish 
runs can be developed. Accordingly, the Committee 
recommendation for the Columbia River Juvenile Fish Mitigation 
program is $78,800,000, which is the same as the amount 
appropriated in FY 1996 and $28,200,000 below the budget 
request. The Administration should be aware that in these times 
of declining budgets for discretionary programs it is unlikely 
that this line item will receive a significant increase in the 
future. The Administration should work to priorize its efforts 
in salmon recovery within a budget which is justified 
considering current and future fiscal constraints.
    The Committee supports the testing and installation of 
surface bypass facilities at several of the Corps projects and 
understands that they may hold great promise for improving fish 
survival in the system. It is important, however, for the Corps 
to design, construct and install the surface bypass prototypes 
at the lowest possible cost. The recently installed surface 
bypass prototype at Lower Granite Dam cost more than twice as 
much as a surface bypass facility at a public utility district-
owned project on the mid-Columbia River. While the 
configurations of the Federal and non-Federal projects on the 
Columbia and Snake rivers are all unique, and comparisons among 
them are difficult to make, the Committee is concerned that the 
Corps is over-designing its prototypes, and encourages the 
Corps to review its procedures in order to lower the cost of 
future facilities.
    The Corps is directed to continue its work on gas abatement 
measures, including the construction of spillway flip lips at 
Ice Harbor and John Day dams. The Committee encourages efforts 
to continue improving monitoring of dissolved gas levels at the 
projects, and directs the Corps to work with the National 
Marine Fisheries Service, the states and the tribes to further 
improve the current physical gas monitoring and reporting 
system.
    In addition, the Committee supports the construction of 
Passive Integrated Transponder (PIT) tag detectors at the John 
Day and Bonneville projects. The Committee understands that the 
Corps' cost estimate for the construction of the John Day PIT 
tag facility has been revised upward due to recently discovered 
problems at the construction site. The Committee considers this 
facility to be a high priority, and directs the Corps to 
allocate sufficient funds within the overall program to ensure 
that the facility is completed no later than October 1997.
    In accordance with the Administration's request, no funds 
have been provided for the advanced planning and design for 
public and private facilities affected by the operation of the 
John Day project at minimum pool levels.
    La Farge Lake, Kickapoo River, Wisconsin.--The Committee 
has provided $20,000 for the Corps of Engineers to carry out 
remediation activities in anticipation of deauthorization of 
the La Farge Lake project and the transfer of project lands out 
of Federal ownership.
    Levisa and Tug Forks of the Big Sandy River and Upper 
Cumberland River, West Virginia, Kentucky, and Virginia.--In 
addition to the amounts provided in the budget request, the 
Committee has provided: $18,500,000 to continue construction of 
the Phase III portion of the Harlan, Kentucky, element of the 
project, including continued construction of a river diversion, 
levee and floodwall structures, and nonstructural work; 
$4,050,000 to continue construction of the levee/floodwall and 
complete nonstructural work on the Williamsburg, Kentucky, 
element of the project; $2,000,000 for channel improvement work 
and nonstructural work on the Middlesboro, Kentucky, element of 
the project; $2,000,000 to continue nonstructural work on the 
Pike County, Kentucky, element of the project; $350,000 for the 
Martin County, Kentucky, element of the project; $300,000 for a 
draft report/plan for a flood prevention project in Martin, 
Kentucky, on the Levisa Fork; and $500,000 to continue 
engineering and design of the Haysi Dam feature of the Levisa 
Fork Basin, Virginia, element of the project. In addition, the 
Committee has deleted $1,600,000 requested for detailed project 
reports.
    Continuing Authorities Programs.--The Committee is pleased 
that the Administration has abandoned the proposal made last 
year to terminate the various continuing authorities programs. 
For relatively modest amounts of money these programs have 
provided significant benefits to many of our citizens, 
particularly those in smaller communities.
    Small Flood Control Projects (Section 205).--The Committee 
has provided $29,000,000, $4,500,000 above the budget request, 
for the section 205 program. Within the funds provided, the 
bill includes: $1,000,000 to complete plans and specifications 
and initiate construction of the Northport, Alabama, project; 
$150,000 to initiate construction of the Elba, Alabama, 
project; $150,000 to initiate construction of the Geneva, 
Alabama, project; $3,916,000 to initiate and complete 
construction of the Muscle Shoals, Alabama, project; $252,000 
to complete the feasibility study and initiate plans and 
specifications for the Dallas Branch/Pinhook Creek, Alabama, 
project; $242,000 to initiate and complete construction of the 
Clarks Spring Branch, Decatur, Alabama, project; $200,000 to 
initiate and complete plans and specifications for the 
Huntsville Spring Branch, Alabama, project; $250,000 to 
initiate engineering and design of the Arizona Statewide Flood 
Warning System project; $125,000 to initiate the feasibility 
study for the Tehama-Hamilton City, California, project; 
$690,000 to complete plans and specifications and initiate 
construction of the Magpie Creek, California, project; $540,000 
to initiate and complete plans and specifications for the San 
Pedro Creek, Pacifica, California, project; $774,000 to 
initiate and complete plans and specifications and initiate 
construction of the Mission Zanja Creek, California, project; 
$20,000 to complete the reconnaissance phase of the Christopher 
Creek, Florida, project; $20,000 to complete the reconnaissance 
phase of the Spanish Pond, Florida, project; $65,000 to 
initiate construction of the Wills Branch (Cedar River), 
Florida, project; $300,000 to initiate engineering and design 
of the Cedar Hammock (Wares Creek), Manatee County, Florida, 
project; $170,000 to initiate the feasibility study for the 
Harmon Canal, Savannah, Georgia, project; $800,000 to complete 
design and initiate and complete construction of the Hamburg, 
Iowa, project; $200,000 to complete the feasibility study and 
initiate plans and specifications for the Grand Tower, Degonia 
and Fountain Bluff, Illinois, project; $223,000 to complete 
design for the installation of flood gates at McHenry and 
Algonquin Dams on the Fox River in Illinois; $222,000 to 
initiate plans and specifications for the Prairie du Rocher, 
Illinois, project; $1,500,000 to initiate construction of the 
North Libertyville Estates, Illinois, project; $50,000 to 
initiate studies of flooding problems along Indian Creek, Muddy 
Creek, and Brushy Creek in Lawrence County, Illinois; $363,000 
to complete plans and specifications and initiate construction 
of the Brevoort Levee, Deshee Ditch Pump Plant, Indiana, 
project; $122,000 for design and construction of the Wabash 
River, City Ditch, Brevoort Levee, Indiana, project; $500,000 
to complete plans and specifications and initiate construction 
of the Flatrock River, Rushville, Indiana, project; $200,000 to 
initiate construction of the Feather Creek, Clinton, Indiana, 
project; $150,000 to initiate the feasibility study for the 
Little Calumet River Basin, Dyer, Indiana, project; $25,000 to 
complete the feasibility study for the Bellepoint Floodwall, 
Frankfort, Kentucky, project; $100,000 to initiate and complete 
plans and specifications for the Beech Fork, Bardstown, 
Kentucky, project; $40,000 to complete the feasibility study 
for the Rolling Fork River, Lebanon Junction, Kentucky, 
project; $100,000 to initiate construction of the Jackson (Cy 
Bend), Kentucky, project; $100,000 to initiate construction of 
the Gwynn Falls, Maryland, project; $100,000 to initiate 
construction of the Black River at Poplar Bluff, Missouri, 
project; $91,000 to complete plans and specifications for the 
Main Ditch No. 8, Pemiscot County, Missouri, project; 
$3,200,000 to initiate construction of the St. Peters Old Town 
Levee, Missouri, project; $400,000 to complete plans and 
specifications and initiate construction of the Logan Creek at 
Pender, Nebraska, project; $135,000 to complete plans and 
specifications for the Mill Brook, Highland Park, New Jersey, 
project; $130,000 for the feasibility study for the Poplar 
Brook, Monmouth County, New Jersey, project; $300,000 to 
complete construction of the Sugar Creek, Bellbrook, Ohio, 
project; $200,000 to initiate and complete a feasibility study 
for flood reduction measures at two sites along Connoquenessing 
Creek in Franklin, Marion, and North Sewickley Townships in 
Pennsylvania; $100,000 to initiate and complete the feasibility 
study for the Emily Avenue/Timothy Street, Knoxville, 
Tennessee, project; and $555,000 to complete the feasibility 
study and initiate and complete plans and specifications for 
the Cedar River, Renton, Washington, project.
    For the Magpie Creek, California, project, the Committee 
understands that the portion of the project located at 
McClellan Air Force base is not proceeding on the same schedule 
as the Corps of Engineers' section 205 project. The Committee 
directs the Corps of Engineers to proceed with this project 
such that its design shall provide for the future construction 
of on-base improvements. Any modifications made to the on-base 
portion of the project during design shall be made in 
consultation with the local sponsor.
    Emergency Streambank and Erosion Control (Section 14).--The 
Committee has provided $9,500,000 for the section 14 program, 
$2,000,000 above the budget request. Within the funds provided, 
the bill includes: $185,000 to initiate and complete 
construction of the Ditto Landing, Huntsville, Alabama, 
project; $500,000 to initiate and complete construction of the 
Batesville, Arkansas, project; $110,000 to complete 
construction of the Whitewater River, Brookville, Indiana, 
project; $40,000 to initiate and complete planning and design 
of the Mill Creek, Parke County, Indiana, project; $80,000 for 
planning, design and construction of the White River, Freedom, 
Indiana, project; $109,000 to initiate and complete 
construction of the Ohio River, Masterson House, Kentucky, 
project; $335,000 to complete construction of the French Creek, 
Wattsburg, Pennsylvania, project; $500,000 to initiate and 
complete planning and construction of the Cumberland River, 
Clarksville Fairgrounds, Tennessee, project; $500,000 to 
initiate and complete planning and construction of the 
Cumberland River (river miles 193.8 to 197.5), Nashville, 
Tennessee, project; $300,000 to initiate and complete planning 
and construction of the Cumberland River, Erin Water Treatment 
Intake, Tennessee, project; $500,000 for design and 
construction of the City Interceptor Sewer Line (Tennessee 
River mile 466.5), Tennessee, project; $500,000 for design and 
construction of the Tennessee Riverpark, Frye Fishing Center, 
Tennessee, project; $258,000 to initiate and complete 
construction of the project at Howard Bridge in Columbia, 
Tennessee; $395,000 to complete plans and specifications and 
initiate construction of the Washington-on-the-Brazos, Texas, 
project; and $232,000 to initiate and complete construction of 
the Ohio River, City of Chester, West Virginia, project.
    Small Beach Erosion Control Projects (Section 103).--The 
Committee has provided $5,800,000 for the section 103 program, 
$2,800,000 above the budget request. Within the funds provided, 
the bill includes: $1,850,000 for construction of the City of 
Carlsbad-Aqua Hedionda Lagoon, California, project; $500,000 to 
initiate construction of the Shelter Island/Ram Island 
Causeway, New York, project; $400,000 to initiate construction 
of the Oakwood Beach, New York, project; and $1,757,000 to 
complete plans and specifications and initiate construction of 
the Lummi Shore Road, Lummi Indian Reservation, Washington, 
project.
    Small Navigation Projects (Section 107).--The Committee has 
provided $5,000,000 for the section 107 program, the same as 
the budget request. Within the funds provided, the bill 
includes: $100,000 to initiate a study of navigation problems 
at Hernando Beach Channel in Florida; $305,000 to implement a 
modification to expand the limits of the Shallow Creek 
navigation project in Baltimore County, Maryland; $100,000 to 
initiate a study of navigation problems at Rockhold Creek in 
Maryland; $100,000 to initiate a study of navigation problems 
at Huron Harbor, Michigan; $100,000 to study the need for 
navigation improvements at Mamaroneck Harbor in New York; 
$980,000 to complete plans and specifications and initiate and 
complete construction of the breakwater extension project at 
Newport Harbor, Oregon; $100,000 to initiate the feasibility 
study for the Coan River, Virginia, project; and $100,000 to 
initiate the feasibility study for the Messick Point, Back 
River, Virginia project.
    Clearing and Snagging for Flood Control (Section 208).--The 
Committee has provided $500,000 for the section 208 program, 
the same as the budget request. Within the funds provided, the 
Committee has provided $300,000 for initiation and completion 
of planning and design studies for the Walker River Basin 
project in Nevada.
    Project Modifications for Improvement of the Environment 
(Section 1135).--The Committee has provided $15,000,000 for the 
section 1135 program, the same as the budget request. Within 
the funds provided, the bill includes: $438,000 to prepare a 
project modification report and initiate engineering and design 
of the Gunnerson Pond, California, project; $600,000 to 
initiate and complete plans and specifications and initiate 
construction of the San Lorenzo River, California, project; 
$600,000 to complete plans and specifications and initiate 
construction of the Upper Sacramento River, Murphy Slough, 
California, project; $3,000,000 to continue construction of the 
Yolo Basin Wetlands (Davis Site), California, project; $500,000 
to complete the project modification report for the Prospect 
Island, California, project; $500,000 for plans and 
specifications for a sea turtle nesting habitat project at Long 
Beach, North Carolina; $253,000 to initiate and complete design 
and environmental compliance work for the Grande Ronde Headcut 
Stabilization project in Oregon; and $3,750,000 to complete 
plans and specifications and initiate and complete construction 
of an environmental restoration project at the Port of 
Jefferson in the Cypress Valley Watershed in Texas.

            Flood Control, Mississippi River and Tributaries

  Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri, and 
                               Tennessee

Appropriation, 1996.....................................    $307,885,000
Budget Estimate, 1997...................................     292,500,000
Recommended, 1997.......................................     302,990,000
Comparison:
    Appropriation, 1996.................................      -4,895,000
    Budget Estimate, 1997...............................     +10,490,000

    The budget request and the approved Committee allowance are 
shown on the following table:


    Helena and Vicinity, Arkansas.--Due to the budgetary 
situation, the Committee has deleted the funds requested for 
the initiation of construction of the Helena and Vicinity, 
Arkansas, project.
    Atchafalaya Basin Floodway System, Louisiana.--The 
Committee has provided an additional $425,000 for the Secretary 
of the Army, acting through the Chief of Engineers, to 
construct a boat ramp near Simmesport in Avoyelles Parish, 
Louisiana, as part of the Atchafalaya Basin Floodway System, 
Louisiana, project authorized in Public Law 99-88.
    Yazoo Basin, Demonstration Erosion Control, Mississippi.--
The bill includes $18,000,000 for the Demonstration Erosion 
Control program, a continuation of joint efforts by the 
Vicksburg District of the U.S. Army Corps of Engineers and the 
Natural Resources Conservation Service in the Yazoo Basin of 
Mississippi. The funds provided will permit the Corps of 
Engineers to undertake work in the following watersheds: 
Batupan Bogue, Otoucalofa Creek, Hotophia Creek, Black Creek, 
Abiaca Creek, Hurricane-Wolfe Creek, Coldwater River, and 
Yalobusha River. For the Yalobusha River Basin, the Committee 
has provided $1,000,000 for the Corps of Engineers to design 
and construct grade control structures, clean out channels, 
develop an environmental impact statement and design future 
work. The Committee does not concur with the Administration's 
position that this partially completed project has fully 
demonstrated its effectiveness. This project, which is only now 
beginning to generate the technology transfer originally 
anticipated, should be continued to completion, including the 
necessary monitoring to facilitate technology transfer. The 
Committee expects the Administration to continue to request 
funds for this important program.
    St. Johns-New Madrid Floodway Flood Control Project, 
Missouri.--The Committee urges the Corps to complete its pre-
construction activities on the St. Johns-New Madrid Floodway 
Flood Control Project, particularly the East Prairie element, 
within six months of the enactment of this bill. The Corps is 
expected to cooperate with the U.S. Department of Agriculture, 
its Enterprise Community Program, and other federal agencies.
    West Tennessee Tributaries, Tennessee.--The Committee is 
aware that the West Tennessee Tributaries flood control project 
authorized by the Flood Control Act of June 30, 1948, has been 
a matter of considerable concern for many years because of the 
need to consider and implement measures to preserve and enhance 
environmental values as part of the project. The Committee is 
further aware that a steering committee, including membership 
representing a cross-section of all interested groups, has been 
tasked by the State of Tennessee to develop a plan which can be 
supported by all interests. The Committee has been advised that 
the steering committee has developed a consensus plan on two 
critical watersheds within the basin to be implemented as a 
demonstration of a total watershed/ecosystem approach to 
providing a measure of flood control while preserving and 
enhancing environmental resources. Therefore, the Committee 
directs that the Corps of Engineers utilize funds provided for 
the West Tennessee Tributaries project for demonstration 
projects on the Middle Fork Forked Deer River, Buck Creek, and 
Stokes Creek Watersheds, and to conduct reformulation studies 
to develop consensus plans for flood control and environmental 
preservation using a total watershed/ecosystem approach. The 
construction of protection works for bridges and other 
facilities where channel improvement work has been completed 
should also be continued.
    Mississippi River Levees, Louisiana.--The Committee has 
provided an additional $2,860,000 for the Corps of Engineers to 
accelerate the important work of bringing Mississippi River 
levees in Louisiana up to grade.
    Sardis Lake, Mississippi.--The Committee is aware that the 
City of Sardis, Mississippi, has worked closely with the Corps 
of Engineers to develop a viable and responsible plan for 
developing the valuable resources of Sardis Lake in 
Mississippi. The Committee has provided additional funds so 
that the Corps of Engineers may perform the dredging that is 
necessary for the development plan to proceed.

                   Operation and Maintenance, General

Appropriation, 1996.....................................  $1,703,697,000
Budget Estimate, 1997...................................   1,663,000,000
Recommended, 1997.......................................   1,701,180,000
Comparison:
    Appropriation, 1996.................................      -2,517,000
    Budget Estimate, 1997...............................     +38,180,000

    The budget request and the approved Committee allowance are 
shown on the following table:


    Greers Ferry Lake, Arkansas.--The Committee has provided an 
additional $200,000 for paving of roads at the Greers Ferry 
Lake project in Arkansas.
    Isabella Lake, California.--The Committee expects the Corps 
of Engineers to use funds appropriated in this Act to conduct 
the measures required by the May 16, 1996, Biological Opinion 
issued by the U.S. Fish and Wildlife Service with respect to 
the operation of Isabella Reservoir, Kern County, California. 
The Committee further expects the Corps of Engineers to 
identify the least costly actions available, including, 
whenever possible, the utilization of partnerships with other 
Federal and non-Federal agencies and organizations, so that the 
Corps can continue to operate and maintain Isabella Dam and 
Reservoir for flood control and water conservation purposes as 
provided in the October 23, 1964 contract among the United 
States of America and various public agencies.
    Los Angeles County Drainage Area, Compton Creek, 
California.--The Committee has been advised that the Corps of 
Engineers has entered into an agreement with the City of 
Compton and the Los Angeles County Department of Public Works 
to begin a one-time clean-up of the Compton Creek channel 
feature of the Los Angeles County Drainage Area project. In 
support of this agreement and in light of the potential hazards 
that exist because of the project's current condition, the 
Committee directs the Corps to use $500,000 to continue the 
necessary channel maintenance and other related flood control 
improvements.
    Los Angeles County Drainage Area, Sepulveda Dam, 
California.--The Committee has provided $3,200,000 for the 
Corps of Engineers to continue the development of recreation 
facilities at Sepulveda Dam in California.
    Los Angeles-Long Beach Harbors, California.--The Committee 
has provided $3,800,000 for the Los Angeles-Long Beach Harbors 
project. With the funds provided, the Committee expects the 
Corps of Engineers to perform maintenance dredging, conduct 
channel condition surveys, and conduct a study of the need to 
rehabilitate the breakwater. In addition, the Committee directs 
the Corps of Engineers to work with the Environmental 
Protection Agency to complete all actions necessary for the 
designation of the LA-3 site as a permanent dredged material 
disposal site.
    Los Angeles River, California.--The Committee is aware of 
the need for the Corps of Engineers to perform maintenance 
dredging to remove the material that has accumulated at the 
mouth of the Los Angeles River. The Committee is also aware 
that a suitable disposal site for that material has yet to be 
identified. Therefore, the Committee has provided $300,000 for 
the Corps of Engineers to complete the ongoing study of dredged 
material disposal alternatives for material that has 
accumulated at the mouth of the Los Angeles River.
    Napa River, California.--The bill includes $2,056,000 for 
maintenance dredging of the Napa River, California, project as 
requested by the Corps of Engineers.
    Newport Bay Harbor, California.--The Committee has provided 
an additional $550,000 for the Corps of Engineers to continue 
repairs to the damaged east and west jetties at Newport Bay 
Harbor in California.
    Noyo River and Harbor, California.--The Committee has 
provided $736,000 for maintenance dredging of the Noyo River 
and Harbor project, the same as the budget request. The 
Committee is aware of recent loss of life and property at the 
project and supports designation of the project as a Harbor of 
Refuge. Such losses are an example of why the Committee views 
the Administration's proposal to discontinue dredging at 
smaller harbors as ill-advised. The Committee believes that the 
Corps of Engineers should investigate whether controlling 
sedimentation before it reaches the navigation channel is a 
cost-effective means of maintaining the project. The Committee 
further directs the Corps to evaluate whether the design of the 
original inner jetty is contributing to the dangerous situation 
at the mouth of the Noyo River.
    San Pablo Bay and Mare Island Strait, California.--The 
Committee believes that the Corps of Engineers should continue 
its maintenance dredging of Mare Island Strait at sufficient 
depths to permit commercial traffic to continue to use Mare 
Island facilities once they have been converted from military 
use.
    Terminus Dam, California.--The Committee has provided an 
additional $680,000 to accelerate completion of the ongoing 
seismic analysis at Terminus Dam.
    Ventura Harbor, California.--The Committee has provided 
$3,900,000 for the Corps of Engineers to perform maintenance 
dredging and repair the breakwater and jetties at Ventura 
Harbor in California.
    Fort Myers Beach, Florida.--The Committee has provided 
$375,000 for the Corps of Engineers to reimburse the local 
sponsor of the Fort Myers Beach, Florida, project for 
maintenance dredging it performed to open the authorized 
channel to navigation.
    Savannah and Brunswick Harbors, Georgia.--The Committee is 
very concerned that the Corps of Engineers has not been 
adequately maintaining the Savannah and Brunswick Harbor 
projects in Georgia. In order to keep these important projects 
open to navigation, the Committee has provided $16,000,000 for 
Savannah Harbor and $3,400,000 for Brunswick Harbor.
    Savannah River Below Augusta, Georgia.--The Committee has 
provided an additional $1,000,000 for the Corps of Engineers to 
undertake repairs to the New Savannah Bluff Lock and Dam.
    Chicago Harbor, Illinois.--The Committee has provided an 
additional $1,150,000 for the Corps of Engineers to continue 
repairs to the Chicago Lock.
    Indiana Harbor, Indiana.--The Committee has provided an 
additional $292,000 for the Corps of Engineers to complete the 
design memorandum and initiate and complete plans and 
specifications for a confined dredged material disposal 
facility for the Indiana Harbor, Indiana, project.
    Kentucky River Locks and Dams 5-14, Kentucky.--The 
Committee has provided $3,600,000 for the Corps of Engineers to 
complete repairs to Locks and Dams 5-14 on the Kentucky River 
in preparation for transfer of the facilities to the 
Commonwealth of Kentucky.
    Red River Waterway, Louisiana.--The bill includes an 
additional $1,000,000 for the Corps of Engineers to undertake 
remedial measures to enhance the environmental value of, and 
provide access to the oxbow lakes created by construction of 
the Red River Waterway project.
    Fishing Creek, Maryland.--The Committee has provided 
$400,000 for the Corps of Engineers to perform maintenance 
dredging of the Fishing Creek project in Maryland.
    Jennings Randolph Lake, Maryland and West Virginia.--The 
Committee has provided $140,000 for the Corps of Engineers to 
complete work on the revised master plan for Jennings Randolph 
Lake.
    Kawkawlin River, Michigan.--The Committee has provided 
$160,000 for maintenance of the Kawkawlin River, Michigan, 
flood control project.
    St. Joseph Harbor, Michigan.--The Committee has provided an 
additional $325,000 for the Corps of Engineers to perform 
maintenance dredging of the inner harbor at the St. Joseph 
Harbor, Michigan, project.
    Cedar River Harbor, Michigan.--The Committee has provided 
$125,000 for the Corps of Engineers to undertake detailed 
design, including the preparation of plans and specifications, 
for repairs to the breakwaters at Cedar River Harbor in 
Michigan.
    Clearwater Lake, Missouri.--The bill includes an additional 
$350,000 for the Corps of Engineers to undertake engineering 
and design activities related to the relocation of facilities 
impacted by flooding.
    Little Sodus Bay Harbor, New York.--The Committee has 
provided $1,700,000 for the Corps of Engineers to repair the 
deteriorated breakwater at Little Sodus Bay Harbor in New York.
    Semi-Annual Surveys of Critical Channels in New York and 
New Jersey Harbors.--The Committee has provided an additional 
$750,000 for the Corps of Engineers to conduct semi-annual 
hydrographic surveys of the Sandy Hook, Raritan Bay, Arthur 
Kill, Passaic River, Hackensack River, Newark Bay and Kill Van 
Kull navigation channels in the ports of New York and New 
Jersey. These funds should be utilized to supplement the funds 
provided to conduct normal channel surveys until such time as 
normal maintenance dredging can be conducted in these critical 
navigation channels.
    New York--New Jersey Dredged Material Management Study.--
The Committee understands that the Corps of Engineers has been 
unable to adequately maintain to authorized depths the Federal 
navigation channels in the Ports of New York and New Jersey due 
to the lack of acceptable dredged material disposal sites. The 
Committee also understands that efforts are being made in the 
region by Federal, state, and port agencies to identify short 
and long term disposal strategies and to site the necessary 
facilities. Those efforts are to be encouraged. In the interim, 
the Secretary of the Army is directed to use all available 
resources, and to work with the States of New Jersey and New 
York, to maintain the authorized depths of the Federal 
navigation channels in New York-New Jersey Harbor and to employ 
any economically feasible sediment management options that 
become available for dredged material disposal.
    The Committee is aware that the budget request includes 
$2,500,000 for the Dredged Material Management Plan for New 
York-New Jersey Harbor. As work on the plan progresses, the 
Committee directs the Secretary of the Army to proceed with 
implementation of any individual option to advance solutions to 
the dredged material disposal problem in advance of completion 
of the overall management plan. An example would be 
implementation of solutions such as long-term capacity confined 
disposal facilities to serve Federal and non-Federal dredging 
activity. In addition to the regional discussions above, the 
Corps of Engineers' December 1989 report, ``Managing Dredged 
Material: Evaluation of Disposal Alternatives in the New York-
New Jersey Metropolitan Region,'' and the 12-year study on 
which it is based should serve to indicate feasible solutions.
    Manteo (Shallowbag Bay), North Carolina.--The Committee has 
provided an additional $160,000 for the Corps of Engineers to 
continue the monitoring of the terminal groin constructed at 
Oregon Inlet.
    Garrison Dam, Lake Sakakawea, North Dakota.--The Committee 
has provided an additional $100,000 for the Corps of Engineers 
to undertake mosquito control activities in the vicinity of 
Williston, North Dakota.
    Cleveland Harbor, Ohio.--The Committee recommends that the 
Corps of Engineers negotiate with the City of Cleveland a more 
flexible payment schedule for completion of the new confined 
disposal facility adjacent to Burke Airport. This will 
alleviate the burden on the City of a $3,500,000 payment due in 
early fall.
    Oklahoma Reservoirs.--The Committee is aware that several 
Corps of Engineers projects in the State of Oklahoma were 
constructed over producing or abandoned oil and natural gas 
fields and that, over time, a number of unplugged or poorly 
plugged wells have purged saltwater, oil, or gas into the 
lakes. The Committee understands that the Oklahoma Corporation 
Commission has recently received grants from the Department of 
Energy that can be used to locate and map existing oil and gas 
wells that may be purging into Corps of Engineers reservoirs. 
The Committee directs the Corps of Engineers to cooperate fully 
with the Oklahoma Corporation Commission in that undertaking.
    Pensacola Reservoir--Lake of the Cherokees, Oklahoma.--The 
Committee has provided an additional $1,500,000 for the Corps 
of Engineers to undertake a study of the need to acquire 
additional real estate interests in the upstream areas adjacent 
to and surrounding Grand Lake that are adversely impacted by 
the operation of the project.
    Columbia and Lower Willamette Rivers below Vancover, 
Washington, and Portland, Oregon.--The Committee has provided 
$400,000 for the Corps of Engineers to undertake a ship 
simulation study of the need to make modifications to the 
Bookfield/Pillar Rock stretch of the Columbia River channel in 
the interest of navigation safety and $2,000,000 to undertake 
corrective measures.
    Willamette River Basin, Oregon.--The Committee has provided 
$1,345,000 for a program to mark hatchery reared salmon in 
order to permit a selective fishery to be developed. This will 
allow wild fish to be released, while at the same time 
permitting a recreational fishery to continue.
    Raystown Lake, Pennsylvania.--The Committee has provided 
$500,000 for the Corps of Engineers to implement facility 
upgrades identified in the 1992 Master Plan update for Raystown 
Lake in Huntingdon County, Pennsylvania.
    Tennessee River, Tennessee.--From within funds available 
for maintenance of the Tennessee River project, the Committee 
has provided $1,000,000 for improvements to landing facilities 
as recommended in the Corps of Engineers Nashville District's 
Guntersville Landing report dated June 1996.
    Cooper Lake and Channels, Texas.--The Committee has 
provided an additional $150,000 for the Corps of Engineers to 
accomplish necessary environmental compliance and studies 
associated with a land designation change at the Cooper Lake 
and Channels project and an additional $1,500,000 for 
infrastructure improvements to support proposed project 
enhancements.
    Mississippi River Mainstem Model Development.--The 
Committee is aware of the Corps of Engineers' involvement in 
mapping and geographic information system (GIS) activities for 
the Mississippi River Mainstem Model Development project. 
Within available funds, the Corps is encouraged to work toward 
completion of surveying, large-scale mapping and GIS activities 
in support of the hydraulics and hydrology model.
    Laser Induced Distance and Ranging (LIDAR).--The Committee 
supports the use of the LIDAR system for topographic mapping 
and expects the Corps of Engineers New Orleans District to 
utilize funds to participate in the proof of concept of this 
technology for further commercial uses as part of the 
Atchafalaya Hydrographic Survey Book project.

                           Regulatory Program

Appropriation, 1996.....................................    $101,000,000
Budget Estimate, 1997...................................     112,000,000
Recommended, 1997.......................................     101,000,000
Comparison:
    Appropriation, 1996.................................................
    Budget Estimate, 1997...............................     -11,000,000

    This appropriation provides for salaries and related costs 
to administer laws pertaining to regulation of navigable waters 
and wetlands of the United States in accordance with the Rivers 
and Harbors Act of 1899, the Clean Water Act of 1977, and the 
Marine Protection Act of 1972.
    For fiscal year 1997, the Committee recommends an 
appropriation of $101,000,000 for the Corps of Engineers' 
Regulatory Program, which is the same as the fiscal year 1996 
level and $11,000,000 below the budget request. The Committee 
notes that the fiscal year 1997 budget request for the 
Regulatory Program is over 50% greater than the amount 
appropriated in fiscal year 1991. In light of the budgetary 
situation, the Committee believes that the Corps of Engineers 
must seek ways to streamline the permitting process, which will 
not only have the benefit of reducing the costs associated with 
administering this program, but will also reduce the regulatory 
burden on our citizens.
    Santa Rosa Plain Vernal Pools Task Force, California.--The 
goal of the Vernal Pools Task Force is to develop a general 
permit application that will specifically identify a finite 
area of high grade vernal pools suitable for protection. Using 
the data gathered in Phase I and Phase II, the application will 
also specifically identify areas with low quality or no vernal 
pools that qualify for automatic inclusion under the general 
permit. The Committee is disappointed that the Corps of 
Engineers has thus far utilized only about $100,000 of the 
$250,000 appropriated for the task force in fiscal year 1996. 
The Committee directs that such amounts as are necessary for 
the Vernal Pools Task Force in fiscal year 1997 be taken from 
funds otherwise available for the Regulatory Program.
    Lakes Earl and Talawa, California.--The Committee directs 
the Corps of Engineers to use up to $300,000 of the funds 
provided for the Regulatory Program to conduct a study of the 
effects of different breach elevations on the natural resources 
of Lakes Earl and Talawa.
    Evaluation of Gravel Operations, Lower Eel and Mad Rivers, 
California.--The Committee directs the Corps of Engineers to 
use $250,000 of the funds provided for the Regulatory Program 
to study long-term sedimentation and conduct biological 
monitoring of the impacts of gravel operations on the aquatic 
ecosystem in the Lower Eel and Mad Rivers, including potential 
mitigation measures.

                 Flood Control and Coastal Emergencies

Appropriation, 1996.....................................    $145,000,000
Budget Estimate, 1997...................................      15,000,000
Recommended, 1997.......................................      10,000,000
Comparison:
    Appropriation, 1996.................................    -135,000,000
    Budget Estimate, 1997...............................      -5,000,000

Note: The fiscal year 1996 appropriation includes $135,000,000 in 
emergency appropriations enacted in Public Law 104-134.

    This activity provides for flood emergency preparation, 
flood fighting and rescue operations, and repair of flood 
control and Federal hurricane or shore protection works. It 
also provides for emergency supplies of clean drinking water 
where the source has been contaminated and, in drought 
distressed areas, provision of adequate supplies of water for 
human and livestock consumption.
    Pierce County, Washington.--The Committee is aware that as 
a result of flooding which occurred in November of 1995 and 
February of 1996, non-Federal levees along the Puyallup and 
Carbon Rivers in Pierce County, Washington, suffered severe 
damages. The Committee is further aware that these levees could 
be eligible for Federal assistance under the provisions of 
Public Law 84-99 were it not for requirements of the Puyallup 
Tribe of Indians Settlement Act of 1989, which prevented the 
County from complying with the Corps of Engineers national 
vegetation management standards. The Committee believes that 
the residents of Pierce County should not be penalized for 
having to comply with the terms of that agreement, and has, 
therefore, included language in the bill which directs the 
Secretary of the Army to rehabilitate the damaged levees along 
the Puyallup and Carbon Rivers. The Committee further directs 
the Corps of Engineers to immediately begin working with the 
County and the Tribe to develop an acceptable levee vegetation 
management program for levees affected by the Puyallup Tribal 
settlement in Pierce County, Washington.

                           Oil Spill Research

Appropriation, 1996.....................................        $850,000
Budget Estimate, 1997...................................         850,000
Recommended, 1997.......................................................
Comparison:
    Appropriation, 1996.................................        -850,000
    Budget Estimate, 1997...............................        -850,000

    Section 7001 of the Oil Pollution Act of 1990 established 
an Interagency Coordinating Committee on Oil Pollution Research 
to develop a plan for, and coordinate the implementation of, an 
oil pollution research, development, and demonstration program.
    Title VII of the Oil Pollution Act of 1990 also authorizes 
use of the Oil Spill Liability Trust Fund to perform oil 
pollution research.
    Due to the severe budgetary situation, the Committee has 
deleted the funds requested by the Administration for the Corps 
of Engineers participation in the activities of the Interagency 
Coordinating Committee of Oil Pollution Research established by 
section 7001 of the Oil Pollution Act of 1990.

                            General Expenses

Appropriation, 1996.....................................    $151,500,000
Budget Estimate, 1997...................................     153,000,000
Recommended, 1997.......................................     145,000,000
Comparison:
    Appropriation, 1996.................................      -6,500,000
    Budget Estimate, 1997...............................      -8,000,000

    This appropriation finances the expenses of the Office of 
the Chief of Engineers, the Division Offices, and certain 
research and statistical functions of the Corps of Engineers.
    Last year, the Committee expressed its concern about the 
amount of money required to provide executive direction and 
management to the Corps of Engineers district offices. The 
Committee also expressed its belief that, faced with the 
prospect of declining budgets, the Nation could no longer 
afford the current Corps of Engineers division office 
structure. It is now clear that the Committee's concerns were 
well founded and the Committee has included language in the 
bill requested by the Administration that permits funds to be 
used to reduce the number of division offices. Due to the 
budgetary constraints faced by the Committee, the 
recommendation for General Expenses of the Corps of Engineers 
for fiscal year 1997 is $145,000,000, a decrease of $6,500,000 
below the fiscal year 1996 level and $8,000,000 below the 
budget request.
    San Francisco Bay--Sacramento--San Joaquin Delta, 
California.--In the Bay-Delta Accord signed on December 15, 
1994, several Federal agencies, the State of California, 
environmental organizations, and water users agreed to develop 
a plan to protect the Bay-Delta estuary's environmental 
resources and restore reliable water supplies to California's 
farms and cities. Though not a signatory to the Accord, the 
Corps of Engineers has authority over programs that are 
necessary to its successful implementation. The Committee urges 
the Corps to work with Bay-Delta agencies and to provide them 
with technical, planning and administrative assistance in 
fulfilling their obligations under the Bay-Delta Accord.

                           general provision

                       Corps of Engineers--Civil

    Hopper Dredging.--Public Law 95-269 requires that the 
Secretary of the Army carry out dredging by contract if the 
Secretary determines that industry has the capability to do the 
work and that it can be done at reasonable prices and in a 
timely manner. Under this authority, the Corps tested the 
industry's capability in the 1980s through a program of 
competitive bidding that indicated industry could do a great 
deal of the dredging work far more efficiently than the Federal 
government. The Committee notes that recent efforts to test 
industry's capability by advertising for contract 7,500,000 
cubic yards of dredging volume previously accomplished by 
government vessels has been successful. The Committee, 
therefore, has decided to expand that effort by including a 
provision in the bill that directs the Secretary of the Army to 
advertise for competitive bid 10,000,000 cubic yards of hopper 
dredge volume accomplished with government dredges in fiscal 
year 1992.
    Hopper Dredge McFarland.--The Committee has included 
language prohibiting the use of appropriated funds to study, 
design, or undertake improvements to the Federal vessel, 
McFarland. The limitation of the use of funds includes funds 
appropriated to carry out Federal dredging projects which are 
then deposited into the Corps Revolving Fund and used to pay 
for the operation, maintenance or improvement of Federal 
equipment, such as Corps' dredges. In prohibiting improvements 
to the vessel, the Committee does not intend to prevent or 
interfere with repairs to the vessel needed to keep the vessel 
in its current operating condition.
                                TITLE II

                       DEPARTMENT OF THE INTERIOR

                          Central Utah Project

                central utah project completion account

Appropriation, 1996.....................................     $44,139,000
Budget Estimate, 1997...................................      43,627,000
Recommended, 1997.......................................      43,627,000
Comparison:
    Appropriation, 1996.................................        -512,000
    Budget Estimate, 1997...............................................

    The Central Utah Project Completion Act (Titles II-VI of 
Public Law 102-575) provides for the completion of the Central 
Utah Project by the Central Utah Water Conservancy District. 
The Act also authorizes the appropriation of funds for fish, 
wildlife, and recreation mitigation and conservation; 
establishes an account in the Treasury for the deposit of these 
funds and of other contributions for mitigation and 
conservation activities; and establishes a Utah Reclamation 
Mitigation and Conservation Commission to administer funds in 
that account. The Act further assigns responsibilities for 
carrying out the Act to the Secretary of the Interior and 
prohibits delegation of those responsibilities to the Bureau of 
Reclamation.
    The Committee recommendation for fiscal year 1997 to carry 
out the provisions of the Act is $43,627,000, the same as the 
budget request.

                         Bureau of Reclamation

                         General Investigations

Appropriation, 1996.....................................     $12,684,000
Budget Estimate, 1997...................................      15,095,000
Recommended, 1997.......................................      14,548,000
Comparison:
    Appropriation, 1996.................................      +1,864,000
    Budget Estimate, 1997...............................        -547,000

    The budget request and the approved Committee allowance are 
shown on the following table:


    West Salt River Valley Water Resources Management Study, 
Arizona.--The Committee has provided $200,000 for the Bureau of 
Reclamation to begin work on a study to develop a regional 
solution to eliminate groundwater mining and increase reliance 
on renewable water supplies in the West Salt River Valley.
    Del Norte County and Crescent City Wastewater Reclamation 
Study, California.--The Committee has provided $500,000 for the 
Bureau of Reclamation to complete the appraisal study and 
initiate preconstruction engineering and design for the Del 
Norte County and Crescent City Wastewater Reclamation project. 
The Committee believes that in view of the depressed economy of 
the region, the Bureau should make every effort to minimize any 
requirement for a local contribution. At a minimum, in-kind 
services performed by the local sponsor should be considered 
part of the local share.
    Fort Bragg Reclamation Study, California.--The bill 
includes $500,000 for the Bureau of Reclamation to complete the 
appraisal study and initiate preconstruction engineering and 
design for the Fort Bragg Reclamation project. The Committee 
believes that in view of the depressed economy of the region, 
the Bureau should make every effort to minimize any requirement 
for a local contribution. At a minimum, in-kind services 
performed by the local sponsor should be considered part of the 
local share.
    Sacramento County Water Reclamation and Reuse Study, 
California.--The Committee has provided $300,000 for the Bureau 
of Reclamation to undertake a water reclamation and reuse study 
for Sacramento County, California.
    Salton Sea Research Project, California.--The Committee has 
provided $400,000 for the Bureau of Reclamation to continue the 
Salton Sea, California, research project.
    Southern California Comprehensive Water Study, 
California.--The Committee has provided $750,000 for the Bureau 
of Reclamation to continue its participation to develop a long-
range water supply and reclaimed water management program for 
the southern California coastal and inland valley area. Due to 
the addition of the Orange County Regional Water Reclamation 
study as part of this existing study, up to $97,000 shall be 
provided for the Orange County Regional Water Reclamation 
Project.
    Carson River Basin, Nevada.--The Committee has provided 
$200,000 for the Bureau of Reclamation to undertake a 
groundwater study in the Fallon area of Churchill County, 
Nevada.
    Walker River Basin, Nevada.--The Committee has provided 
$250,000 for the Bureau of Reclamation to continue a study, 
being conducted in cooperation with the University of Nevada, 
of the potential for water banking within the Walker River 
Basin of Nevada. Specifically, the study is seeking to assess 
the extent to which voluntary water transfers involving private 
water rights holders and the Walker River Indian Reservation 
might be employed to assist in the development of a water bank, 
and in the conservation and stabilization of water quality for 
fish habitat and recreation in the Walker River Basin.
    Rio Grande Conveyance Canal/Pipeline, Texas.--The bill 
includes $200,000 for the Bureau of Reclamation to continue its 
participation in the modeling of a lined conveyance system to 
deliver water from Elephant Butte Dam to El Paso.

                          Construction Program

Appropriation, 1996-....................................    $420,046,000
Budget Estimate, 1997...................................     392,524,000
Recommended, 1997.......................................     398,069,000
Comparison:
    Appropriation, 1996.................................     -21,977,000
    Budget Estimate, 1997...............................      +5,545,000

Note: The fiscal year 1996 appropriation includes $9,000,000 in 
emergency appropriations enacted in Public Law 104-134.

    The budget request and the approved Committee allowance are 
shown on the following table:


    Central Arizona Project, Tucson Reliability Project, 
Arizona.--The Committee has included language in the bill that 
directs the Bureau of Reclamation, utilizing funds appropriated 
for the Tucson Aqueduct System Reliability Investigation, to 
complete, by the end of fiscal year 1997, the environmental 
impact statement being conducted on the proposed surface 
reservoir. The Bureau of Reclamation is further directed to 
work with the City of Tucson on any outstanding issues related 
to the preferred alternative.
    Brackish Water Reclamation Demonstration Facility, 
California.--The Committee has provided $1,000,000 in support 
of the Port Hueneme Water Agency's brackish water reclamation 
demonstration project.
    Central Valley Project, Delta Division, California.--The 
Committee has provided $1,000,000, $750,000 above the budget 
request, for the Bureau of Reclamation to undertake an 
environmental analysis and perform pre-design and design 
engineering for screening of the Contra Costa Canal intake at 
Rock Slough.
    Central Valley Project, Miscellaneous Project Programs, 
California.--
          Refuge Water Supply.--The Committee has provided 
        $5,000,000, the same as the budget request, for design, 
        engineering, and construction of facilities to convey 
        water supplies to Federal wildlife refuges, as required 
        by section 3406(d) of Public Law 102-575. The Committee 
        directs the Bureau of Reclamation to make the selection 
        of an alternative for supplying water to the Sacramento 
        National Wildlife Refuge complex a high priority and to 
        take such steps as are necessary to ensure that the 
        project is not delayed, particularly in light of the 
        continuing delays in the completion of the Programmatic 
        Environmental Impact Statement for the entire Central 
        Valley Project.
          Spring Run and Coho Salmon Programs.--The Committee 
        has provided funds to be deposited with the National 
        Fish and Wildlife Foundation to be used in support of 
        activities to enhance and protect the Spring Run Salmon 
        ($225,000) and the Coho Salmon ($225,000).
          Salmon Stamp Program.--The Committee, pursuant to 
        section 3407(e) of Public Law 102-575, has provided 
        $200,000 for the Salmon Stamp Program, which is 
        directed and overseen by representatives of commercial 
        salmon fishermen, charter boat operators, and the 
        California Department of Fish and Game for programs and 
        activities that will increase the production of young 
        salmon in Central Valley Project impacted streams or 
        fishery habitat.
    Central Valley Project, Sacramento River Division, 
California.--
          Glenn-Colusa Irrigation District (Hamilton City 
        Pumping Plant).--The Committee has provided $4,300,000 
        for continuing work on a new fish screen and fish 
        recovery facilities associated with the Glenn-Colusa 
        Irrigation District's Hamilton City Pumping Plant, the 
        same as the budget request. Costs incurred for work 
        undertaken to construct and evaluate the interim fish 
        protection improvements shall be included as a part of 
        the Federal-state cost share, pursuant to section 
        3406(b)(20) of Public Law 102-575, of the long-term 
        program to mitigate the fishery impacts associated with 
        the district's operations. The Committee notes that the 
        aforementioned section authorizes and directs the 
        Secretary of the Interior to ``participate'' in the 
        ``on-going'' project to address the fish passage 
        problems at the Hamilton City Pumping Plant. To ensure 
        that the intent of the authorizing statute is observed 
        and to ensure that the project is carried out at the 
        least cost, the Committee directs the Bureau of 
        Reclamation to provide private entities with a fair and 
        reasonable opportunity to design and construct the 
        project with oversight responsibility by the Bureau of 
        Reclamation in cooperation with the Glenn-Colusa 
        Irrigation District.
          Alternative Fish Protection Facilities.--The 
        Committee has provided an additional $1,100,000 for the 
        installation and evaluation of electric fish guidance 
        systems at Reclamation District 108's Wilkins Slough 
        pumping plant and an additional $215,000 for the 
        installation and evaluation of an alternative fish 
        guidance system at Reclamation District 1004. Such 
        funds are provided as a continuation of the Bureau of 
        Reclamation's unscreened diversion technology 
        demonstration program.
          Winter-Run Chinook Salmon Captive Broodstock 
        Program.--The Committee has provided $500,000 to 
        continue the Sacramento River Winter-Run Chinook Salmon 
        Captive Broodstock Program. The Committee strongly 
        supports this program's objectives.
          Colusa Basin Drainage District.--The Committee has 
        provided $300,000 for continued work on the Colusa 
        Basin Drainage District's integrated resource 
        management project, $100,000 more than the budget 
        request.
    Central Valley Project, Trinity River Restoration Program, 
California.--The Committee has provided $5,000,000 for the 
Trinity River Restoration Program, the same as the budget 
request. The amount provided includes $750,000 requested by the 
Hoopa Valley Tribe and endorsed by the Administration for 
support of the co-management agreement between the Hoopa Valley 
Tribe and the Bureau of Reclamation.
    San Francisco Bay--Sacramento--San Joaquin Delta, 
California.--As a signatory to the Bay-Delta Accord of December 
15, 1994, the Bureau of Reclamation joined other Federal 
agencies and the State of California in committing financial 
resources to the restoration and protection of the Bay-Delta 
estuary. The Bureau of Reclamation's budget estimates for 
fiscal years 1996 and 1997 did not, however, identify the funds 
that will be devoted to implementation of the Bay-Delta Accord. 
The success of this historic initiative depends upon the 
fulfillment of the Federal commitment. The Committee expects 
that the fiscal year 1998 budget estimates of the Bureau of 
Reclamation will identify in detail the funds and programs 
dedicated to implementation of the Accord.
    Animas-La Plata Project, Colorado and New Mexico.--It is 
the desire of the Committee that the Secretary of the Interior 
comply with the directive issued by Congress last year and 
proceed without delay to construct those features on the 
Animas-La Plata project (Stage A) which were approved by the 
U.S. Fish and Wildlife Service under section 7 of the 
Endangered Species Act. In the event that the funding provided 
to the Bureau of Reclamation is inadequate for the tasks to be 
accomplished this year, the Committee expects the Bureau to 
reprogram available funds for construction of the project.
    When it passed the Colorado Ute Indian Water Rights 
Settlement Act of 1988, Congress endorsed the project as the 
vehicle for settlement of the water rights of the two Colorado 
Ute Indian Tribes. Congress intended that by the year 2000, the 
project would provide the Tribes with substantial quantities of 
water for their use. The need for environmental compliance does 
not mean that the terms of that agreement may be rewritten. As 
a result of the section 7 process, the final configuration of 
the project remains uncertain. The Bureau of Reclamation has 
done a superb job in describing the various stages through 
which the project may progress, the impacts and required 
mitigation for each stage, and the utility associated with each 
stage. In addition, the State of Colorado has always supported 
this project and has committed $42,600,000 (plus interest) to 
the project. For purposes of initiating construction of Stage 
A, the existing repayment obligations of the parties 
contracting for water, along with the commitments of the States 
of Colorado and New Mexico, provide adequate assurances that 
the United States will be repaid in connection with 
construction of those facilities.
    The Committee is aware that the San Juan River and its 
tributaries do not consistently meet New Mexico's newly adopted 
water quality standards for selenium and that there is concern 
over the potential effect of the operation of Animas-La Plata 
facilities in Colorado on this existing problem. The Secretary 
of the Interior should take reasonable steps to assist Colorado 
and New Mexico in improving the quality of surface flows by 
addressing the problems caused by non-point sources.
    The Committee is also aware that the Endangered Species Act 
has the potential to limit water development in the San Juan 
Basin, including completion of the Animas-La Plata and Navajo 
Indian Irrigation projects. The Committee remains confident 
that the San Juan River Recovery Implementation Program will 
achieve its stated objectives of (1) recovering the endangered 
fish and (2) permitting water development to proceed. Although 
the precise level of development that will ultimately be 
allowed cannot be determined at this time, the immediate 
construction of Stage A is required if the United States is to 
meet the terms of the Colorado Ute Indian Water Rights 
Settlement Act of 1988. The present documentation is fully 
informative of these issues and construction of the first stage 
of the project may proceed without adversely affecting any of 
the other water users on the San Juan system.
    Northwest Wastewater Reuse Project, Texas.--The Committee 
has provided $2,000,000 to continue the Northwest Wastewater 
Reuse Project being undertaken in cooperation with the El Paso, 
Texas, Water Utilities Public Service Board.
    Wetlands Development.--The Committee has provided 
$4,138,000 for the Wetlands Development program, $200,000 above 
the budget request. Within the funds provided, the Committee 
directs the Bureau of Reclamation to use $630,000 to continue 
the Caddo Lake Scholars and other wetland development 
components of the Caddo Lake Wetlands project through 
continuing cooperation with the National Biological Service.--

                       Operation and Maintenance

Appropriation, 1996-....................................   $-273,076,000
Budget Estimate, 1997--.................................     292,876,000
Recommended, 1997--.....................................     286,232,000
Comparison:
    Appropriation, 1996--...............................     +13,156,000
    Budget Estimate, 1997--.............................      -6,644,000

    In 1997, a total of 38 projects, project areas, or 
divisions of projects will be operated and maintained for 
power, municipal and industrial water supplies, irrigation, 
flood control, and other benefits with funds made available 
under this appropriation.
    Provision is also made for administration of 14 associated 
programs. These programs seek to maximize benefits from 
existing projects. Project benefits and operations will be 
enhanced through water conservation measures, examination of 
existing structures, environmental considerations, improvement 
of recreation opportunities, and water quality improvement.
    The Committee has recommended an appropriation of 
$286,232,000 for the Bureau of Reclamation's Operation and 
Maintenance program, which is $13,156,000 above the amount 
appropriated in fiscal year 1996, and $6,644,000 below the 
budget request. The Committee expects the Bureau of Reclamation 
to use the flexibility available to it in managing the 
operation and maintenance program to ensure that the most 
critical maintenance needs are met. The Committee again 
encourages the Bureau of Reclamation to derive a significant 
share of the reduction below the budget request from the 
Associated O&M Programs in order to retain as much money as 
possible for operation and maintenance of projects.
    Central Valley Project, California.--The Committee has 
provided $66,703,000, $1,045,000 above the budget request, for 
operation and maintenance of the Central Valley Project. Of the 
total, $5,000,000 is provided for operation and maintenance of 
the Trinity River Division, which is $1,045,000 above the 
budget request and $454,000 below the amount appropriated in 
fiscal year 1996. The Commissioner of Reclamation testified 
that the fiscal year 1997 budget request for the Trinity River 
Division was substantially below last year's amount in part 
because the Trinity River Fish and Wildlife Restoration Act has 
not been extended. Since that testimony, on May 15, 1996, the 
President signed the extension to that Act. Of the amount 
provided, $400,000 is for the Yurok and Karuk Tribes, to assist 
in their new responsibilities as members of the Trinity River 
Task Force, and in view of the additional work now authorized 
in the Klamath River downstream from its confluence with the 
Trinity. In addition, $30,000 is included for the fish hatchery 
on Horse Linto Creek. The remaining amounts above the budget 
request are for activities to be undertaken in cooperation with 
the Hoopa Valley Tribe.
    Of the funds provided, such sums as may be necessary shall 
be made available to facilitate the planned transfer of certain 
operation and maintenance responsibilities from the Bureau of 
Reclamation to the Tehama-Colusa Canal Authority, the Friant 
Canal Authority, the San Luis-Delta Mendota Water Authority and 
the Madera Irrigation District and provide for the continuation 
of funding, if necessary, of conveyance operation and 
maintenance under existing cooperative agreements.
    Parker Dam, California.--The Committee is concerned about 
the Bureau's transfer of 77 acres to the Bureau of Land 
Management at Parker Dam, California and its potential impact 
on residents currently occupying Parker Dam Village. The 
Committee strongly urges the Bureau to continue working with 
the residents of Parker Dam Village to ensure that the housing 
and educational needs are appropriately addressed.

               Bureau of Reclamation Loan Program Account

Appropriation, 1996-....................................    $-11,668,000
Budget Estimate, 1997--.................................      12,715,000
Recommended, 1997--.....................................      12,715,000
Comparison:
    Appropriation, 1996--...............................      +1,047,000
    Budget Estimate, 1997--.............................................

    Under the Small Reclamation Projects Act (43 U.S.C. 422a-
422l), loans and/or grants can be made to non-Federal 
organizations for construction or rehabilitation and betterment 
of small water resource projects.
    As required by the Federal Credit Reform Act of 1990, this 
account records the subsidy costs associated with the direct 
loans, as well as administrative expenses of this program.--
    The budget request and the approved Committee allowance are 
shown on the following table:


                Central Valley Project Restoration Fund

Appropriation, 1996-....................................     $43,579,000
Budget Estimate, 1997--.................................      38,000,000
Recommended, 1997--.....................................      38,000,000
Comparison:
    Appropriation, 1996--...............................      -5,579,000
    Budget Estimate, 1997--.............................................

    The Central Valley Project Restoration Fund was authorized 
in the Central Valley Project Improvement Act, Title 34 of 
Public Law 102-575. This Fund was established to provide 
funding from project beneficiaries for habitat restoration, 
improvement and acquisition, and other fish and wildlife 
restoration activities in the Central Valley Project area of 
California. Revenues are derived from payments by project 
beneficiaries and from donations. Payments from project 
beneficiaries include several required by the Act (Friant 
Division surcharges, higher charges on water transferred to 
non-CVP users, and tiered water prices) and, to the extent 
required in appropriations Acts, additional annual mitigation 
and restoration payments.
    San Joaquin River Basin Resource Management Initiative, 
California.--The Committee notes that the budget request does 
not include any funds for the San Joaquin River Basin Resource 
Management Initiative. Consistent with the budget request, the 
Committee directs that no funds shall be available for this 
study in fiscal year 1997.

                    General Administrative Expenses

Appropriation, 1996--...................................    $48,150,000-
Budget Estimate, 1997--.................................      48,971,000
Recommended, 1997--.....................................      45,150,000
Comparison:
    Appropriation, 1996--...............................      -3,000,000
    Budget Estimate, 1997--.............................      -3,821,000

    The general administrative expenses program provides for 
the executive direction and management of all reclamation 
activities, as performed by the Commissioner's offices in 
Washington, D.C., and the Denver, Colorado, and five regional 
offices. The Denver office and regional offices charge 
individual projects or activities for direct beneficial 
services and related administrative and technical costs. These 
charges are covered under other appropriations.
    The Committee is pleased with the progress the Bureau of 
Reclamation has made in reducing administrative costs. However, 
faced with the prospects of a declining program and the severe 
budgetary situation, the Committee believes that the Bureau of 
Reclamation needs to further reduce administrative expenses.
                               TITLE III

                          DEPARTMENT OF ENERGY

    Funds recommended in Title III provide for Department of 
Energy programs relating to: Energy Supply, Research and 
Development Activities; Uranium Supply and Enrichment 
Activities; the Uranium Enrichment Decontamination and 
Decommissioning Fund; General Science and Research Activities; 
the Nuclear Waste Disposal Fund; Departmental Administration; 
the Office of Inspector General: Atomic Energy Defense 
Activities; Power Marketing Administrations; and the Federal 
Energy Regulatory Commission.

                              INTRODUCTION

    Funding recommendations for Department of Energy programs 
in fiscal year 1997 are significantly below the Department's 
fiscal year 1997 budget request, reflecting the continuing 
realities of reducing the deficit and balancing the budget. 
These funding levels are not a one time occurrence with the 
prospect of increasing appropriations in fiscal year 1998; 
rather, they reflect the new baseline for Department of Energy 
funding. Absorbing these reductions will require considerable 
effort on the part of the Department to prioritize activities 
and seek the most cost-effective means for accomplishing 
program goals. The Department must focus on specific core 
program missions and reduce the number of activities currently 
being performed which may be nice to do, but are not possible 
in a severely constrained funding environment.
    While the Committee acknowledges that these program 
reductions will be difficult, there continue to be numerous 
areas where operational improvements need to be made. Examples 
of areas where the Committee expects to see reductions include 
the number of Federal employees at headquarters who micromanage 
field and laboratory activities instead of setting policy and 
allowing implementation of these policies at the field level; 
the number of individual sites and offices throughout the 
country where Department of Energy employees are stationed; the 
number of support service contractors paid to do work which 
should be performed by Federal employees at headquarters and in 
field offices; and the number of Departmental internal 
regulations and pronouncements requiring facilities and 
laboratories to implement compliance actions far exceeding 
those of comparable commercial facilities.

                          FINANCIAL INTEGRITY

    The Committee has become increasingly concerned about the 
fundamental financial integrity of the Department of Energy. A 
series of disconcerting incidents pertaining to the use of 
appropriated funds over the past year has raised serious 
questions about the capability of the Department to identify 
and prevent misuse and abuse of taxpayer funds. Funds have been 
reprogrammed from their original purpose to fund programs 
specifically denied by the Congress in fiscal year 1996. The 
Department created a furlough relief fund to augment 
appropriations for salary accounts which were specifically 
reduced by Congress. Some employees were furloughed for two 
days by the Department due to a shortage of funds and later 
paid in full for the two days they did not work. Contractor 
work forces have been downsized at great expense to the 
taxpayer through the use of generous separation packages, only 
to have the employees subsequently rehired or replaced with 
employees with the same skills. A recent draft Department 
Inspector General report noted that the Department deliberately 
ignored a statutory funding limitation on the use of 
representational expenses and spent more than appropriated for 
receptions. The same report provided a litany of poor financial 
practices making it impossible to calculate the actual cost of 
foreign trips or even the number of participants.
    These are the most recent incidents which have come to the 
Committee's attention. There is great concern that this is only 
the tip of the iceberg. While the Committee is unable to 
determine what is happening inside the Department to cause 
these financial lapses, it is clear that financial management 
principles are taking a back seat to the dictates of the 
Department's leadership. Whether deliberate or not, it reflects 
a fundamental weakness in the Department's management, and has 
brought into question the credibility of the entire Department.

                             REPROGRAMMINGS

    The Committee requires the Department to keep the Committee 
promptly and fully informed when a change in program execution 
and funding is required during the fiscal year. To assist the 
Department in this effort, the following guidance is provided 
for programs and activities funded in the Energy and Water 
Development Appropriations Act.
    Definition.--A reprogramming includes the reallocation of 
funds from one activity to another within an appropriation, or 
any significant departure from a program, project, or activity 
described in the agency's budget justification as presented to 
and approved by Congress. For construction projects, a 
reprogramming constitutes the reallocation of funds from one 
construction project identified in the justifications to 
another or a significant change in the scope of an approved 
project.
    Criteria for Reprogramming.--A reprogramming should be made 
only when an unforeseen situation arises, and then only if 
delay of the project or the activity until the next 
appropriations year would result in detrimental impact to an 
agency program or priority. Reprogrammings may also be 
considered if the Department can show that significant cost 
savings can accrue by increasing funding for an activity. Mere 
convenience or desire should not be factors for consideration.
    Reprogrammings should not be employed to initiate new 
programs or to change allocations specifically denied, limited, 
or increased by Congress in the Act or report. In cases where 
unforeseen events or conditions are deemed to require such 
changes, proposals shall be submitted in advance to the 
Committee and be fully explained and justified.
    Reporting and Approval Procedures.--For several years the 
Department has had the latitude to meet changing program 
requirements by reprogramming funds of less than $1,000,000 
without prior approval of the Committee on Appropriations. 
However, during the past year the Department has 
inappropriately used this authority to reprogram funds to new 
initiatives which were purposely not funded by Congress and to 
augment Secretarial travel with funds originally appropriated 
for other programs. It is unlikely that either of these 
reprogrammings would have been approved by the Committee.
    In light of this, the Committee is providing no internal 
reprogramming flexibility to the Department in fiscal year 1997 
unless specifically provided in the report. Any reallocation of 
new or prior year budget authority or prior year deobligations 
must be submitted to the Committee in writing and may not be 
implemented prior to approval by the Committee on 
Appropriations.

 use of receipts from leasing or selling government property or assets

    The Committee is aware that, in downsizing the former 
defense production complex, the Department has excess property 
and materials, and is seeking to lease or sell government 
property, facilities, and assets which have been obtained over 
the years. The Committee expects the full value of receipts 
from either the lease or sale of government property or other 
government assets to be returned to the United States Treasury 
unless specific authority is contained in the Appropriations 
Act permitting the Department to retain these receipts to 
offset funding requirements.

                      CONTRACTOR EMPLOYMENT LEVELS

    The Committee has tried unsuccessfully over the past 
several months to obtain accurate, credible, and consistent 
numbers of contractor employees at each Departmental site. It 
is difficult to understand why neither Headquarters nor the 
field organizations have been able to provide this information 
on a timely basis. Thus, the Committee directs the Department 
to provide a report to Congress by November 1, 1996, 
identifying contractor employment levels for September 30, 
1996, and estimated for September 30, 1997, which includes the 
following data elements: Federal full-time equivalent 
employees, support service contractors (average man-years), and 
management and operating and/or integrating management 
contractor manpower for direct, direct support, and general 
support categories showing both average man-years and estimated 
end-of-year head count. This report should include summary 
information as well as detailed backup for each Department 
location.

                      CONFERENCES AND NEWSLETTERS

    The Committee notes that the Department sanctioned in 
excess of 400 key conferences during fiscal year 1995 at a cost 
presumed to be many millions of dollars to the Government. In 
this spartan budget environment, the Committee questions both 
the wisdom of, as well as the value added, from so many events. 
The Department is strongly encouraged to substantially reduce 
the number of key conferences sponsored, and strictly control 
the attendance of both Federal and contractor employees at such 
conferences.
    Additionally, the Committee is concerned with the 
proliferation of monthly newsletters and similar documents 
being generated within the Department at Headquarters and in 
the field offices, and by contractors, stakeholder groups, 
State regulators, and other Federal agencies participating in 
cleanup activities--all funded by the Department. The Committee 
directs the Department to make an assessment of these 
publications with an objective of consolidating and/or 
eliminating publications to the extent practicable to reduce 
costs and duplication, and report to the Committee by November 
30, 1996, on the number of its publications and progress made 
to reduce costs.

                    FIXED ASSET ACQUISITION ACCOUNT

    The President's budget request includes funding for a 
Department of Energy fixed asset acquisition account to provide 
future year funding for some construction projects and 
establish an account for privatizing some environmental 
management activities. The Committee has not provided funding 
for construction projects beyond fiscal year 1997, but has 
provided funding for the environmental management program 
privatization initiative which is discussed in a later section 
of this report.

                   DEPARTMENTAL BUDGET JUSTIFICATIONS

    The effort to improve the quality of the Department's 
budget justifications resulted in mixed success. The Department 
is expected to continue to work with the Committee to ensure 
that pertinent information is not eliminated from the budget 
justifications in the name of streamlining. Much information 
must still be obtained through additional program briefings and 
questions for the record. This additional work could be reduced 
by devoting more attention to the quality of information 
provided in the initial budget submission.
     The Committee staff will be working with the Department's 
budget office and individual program offices to continue to 
improve the quality of the budget justifications for the next 
fiscal year, and to develop a process for electronic 
transmission of the Department's fiscal year 1998 budget 
justifications.

                       COMMITTEE RECOMMENDATIONS

    The Committee's recommendations for Department of Energy 
programs are described in the following sections. A detailed 
funding table is included at the end of this title.

           Energy Supply, Research and Development Activities

Appropriation, 1996.....................................  $2,727,407,000
Budget Estimate, 1997...................................   3,020,497,000
Recommended, 1997.......................................   2,648,000,000
Comparison:
    Appropriation, 1996.................................     -79,407,000
    Budget Estimate, 1997...............................    -372,497,000

    The appropriation recommended for Energy Supply, Research 
and Development Activities provides funding for the Department 
of Energy's research and related programs including: solar and 
renewable energy; nuclear energy; non-defense environment, 
safety and health; biological and environmental research; 
fusion energy sciences; basic energy sciences; other energy-
related research; and non-defense-related environmental 
restoration and waste management.
    The Committee recommendation for fiscal year 1997 is 
$2,648,000,000, $372,497,000 less than the budget request and 
$79,407,000 less than fiscal year 1996. The recommendation 
reflects a continuation of last year's effort to reverse the 
unsustainable increases of prior years. The recommendation is 
consistent with the Committee's view that the Department must 
participate in the government-wide downsizing effort, shift its 
emphasis from commercial technology development to basic 
research, reverse its efforts to expand into new areas and 
focus on its core commitments.
    The Committee expected that last year's funding level would 
result in downsizing and elimination of low priority programs. 
The Committee is concerned that the Department failed to 
eliminate low priority programs and even identified funds to 
continue programs specifically eliminated by the Congress last 
year. The Committee continues to be concerned about the 
abnormally high level of uncosted balances in programs under 
this appropriation. These balances represent an unreasonable 
accumulation of funds appropriated in prior fiscal years.

                       SOLAR AND RENEWABLE ENERGY

    Five years ago, in fiscal year 1991, the appropriation for 
solar and renewable energy programs was $196,437,000. Just four 
years later, in fiscal year 1995, $388,108,000 was 
appropriated, representing a 98% increase. Last year, the 
Congress passed and the President approved $275,213,000 for 
solar and renewable energy, a 29% reduction from fiscal year 
1995. Last year's reduction was consistent with the effort to 
reverse the unsustainable increases of prior years and to 
direct scarce resources to basic research rather than 
technology development. This year, the Committee continues this 
direction with a 16% reduction from the fiscal year 1996 level. 
Although this funding level is a 40% reduction from fiscal year 
1995, the recommendation represents a 18% increase above the 
level of funding five years ago.

                      Excessive Carryover Balances

    Most funds appropriated by the Congress are available for a 
limited time--from one to five years in most cases. When funds 
are not used, the appropriation is cancelled. Because the funds 
appropriated under this account are available until expended, 
there is no imperative to expend funds in a timely manner. 
Consequently, appropriated funds have been accumulating from 
year to year. In its April 1996 report, ``Energy Management: 
DOE Needs to Improve its Analysis of Carryover Balances,'' the 
General Accounting Office (GAO) repeated its concerns about the 
extraordinarily high uncosted balances in certain DOE programs. 
(Similar concerns were included in GAO's March 1992 report: 
``Energy Management: Systematic Analysis of DOE's Uncosted 
Obligations Is Needed.'') The most recent report points out 
that while some DOE programs have improved management of 
carryover balances, ``. . . other programs, such as Energy 
Efficiency and Renewable Energy and Energy Research, have not 
used significant amounts of their carryover balances and have 
experienced growing balances.''
    The Committee notes that several DOE offices have worked 
successfully to better manage these balances, identifying the 
causes and reducing the carryover. Unfortunately, the Office of 
Energy Efficiency has not made an effort to better manage its 
funds. While other DOE offices have set goals to reduce 
carryover balances, the Office of Energy Efficiency has not. 
The Committee notes that earlier this year, when the GAO 
attempted to identify projected year-end uncosted balances for 
fiscal year 1996, offices in the DOE provided their estimates 
of anticipated year-end uncosted balances, except for the 
Office of Energy Efficiency and Renewable Energy, which either 
would not or could not provide its estimates.
    At the end of fiscal year 1995, the carryover balance under 
solar and renewable energy programs was $269,230,000, 
representing 98% of the amount appropriated for fiscal year 
1996. On March 31, 1996, halfway through the fiscal year, the 
carryover balances under solar and renewable energy programs 
included $509,000 in unallocated funds, $117,018,000 in 
unobligated funds and $266,192,000 in uncosted funds, 
representing a total unspent balance of $383,719,000. This 
balance includes appropriated funds that have yet to be made 
available to the offices that obligate the funds, appropriated 
funds for which contracts or grants have not yet been awarded, 
and funds which have been obligated with costs that have yet to 
be incurred. This balance, on the books halfway through the 
current fiscal year, reflects 139% of the appropriation 
provided last year.

                      Solar and Renewable Programs

    Solar Building Technology Research.--The Committee 
recommendation is $2,000,000, the same amount provided last 
year.
    Photovoltaic.--The Committee recommendation is $55,800,000, 
a decrease of $9,200,000 from last year.
    The Committee notes that the Solar Industry Journal lists 
99 solar manufacturing companies and 316 companies that provide 
solar-related services. The Federal role in providing research 
and technology development assistance has helped to create a 
significant industry. The Committee disagrees with the 
Administration's proposal to increase spending by 34% for this 
industry.
    The Committee is aware of a proposal to produce hydrogen 
from solid waste and sunlight by use of a Photovoltaic Array 
and intends to examine this issue in greater detail in the 
future.
    Solar Thermal Energy Systems.--The Committee recommendation 
is $21,500,000, a decrease of $3,500,000 from last year.
    Biofuels.--The Committee recommendation is $53,500,000, a 
decrease of $1,800,000 from last year.
    The Committee recommendation represents a funding level of 
97% of the amount provided last year. The Committee directs 
that the Department provide 50% of the funds of this program to 
the biochemical and thermochemical conversion programs as part 
of the biofuels transportation program. Within the amount 
provided for biochemical conversion, the Department is directed 
to provide $3,000,000 for the cost-shared biomass ethanol 
production plant in Gridley, California and $1,000,000 for 
testing forest residue feedstocks at the Department's biomass 
ethanol user facility.
    Wind.--The Committee recommendation is $6,000,000, a 
decrease of $26,500,000 from last year.
    Renewable Energy Production Incentive.--The Committee 
recommendation is $2,000,000, $988,000 less than last year.
    National Renewable Energy Laboratory.--The Committee 
recommendation is $3,300,000, an increase of $1,300,000 over 
last year. The recommendation includes $2,800,000, the same as 
the budget request, for Phase II of the three phase renovation 
and expansion construction project. The remaining amount is 
available for other infrastructure and equipment upgrades.
    Solar and renewable energy deployment.--The Committee 
recommendation is $0, $8,509,000 less than the budget request. 
The Department created this new program title, combining the 
solar technology transfer and international solar energy 
programs. Both of these programs were eliminated last year by 
the Committee. Due to severe budget constraints, the Committee 
again recommends elimination of these activities.
    The Committee directs that the Department refrain from 
entering into new agreements under this program. Any carryover 
funds available on October 1, 1996 under this program shall be 
used to honor existing contracts to the extent possible or 
provide for related termination costs.
    Geothermal.--The Committee recommendation is $29,000,000, a 
decrease of $892,000 from last year.
    The Committee continues to support this program which 
provides significant benefits including a growing source of 
power within the United States, a significant market overseas 
for U.S. companies and more than $20 million in royalty 
payments to the U.S. Treasury for geothermal power produced on 
federal lands.
    The Committee recommendation includes $2,000,000 for the 
Geysers geothermal project. The $2,000,000 represents the final 
Federal contribution for this program. The Committee has 
provided the budget request for the cost-shared geothermal heat 
pump deployment program.
    No funds are included for the hydropower activities 
included in the geothermal program in the budget request.
    Hydrogen research.--The Committee recommendation is 
$15,000,000, an increase of $500,000 from last year.
    Hydropower.--The Committee recommendation is $1,000,000, a 
decrease of $500,000 from last year. This funding completes the 
Federal share of the Haida Alaska Native Village Corporation's 
Reynolds Creek hydroelectric project.
    Electric energy systems and storage.--The Committee 
recommendation is $29,000,000, a decrease of $1,309,000 from 
last year.
    The Committee recommendation includes $8,000,000 for the 
electric and magnetic fields research program, $19,000,000 for 
high temperature superconducting R&D, and $2,000,000 for energy 
storage systems. The Committee supports the Department's 
reduction to the EMF Biological Mechanisms Research program and 
its effort to realize savings by coordinating this work with 
that being done by the EMF Research and Public Information 
Dissemination program.
    The Committee also recognizes and supports the ongoing 
research and development of high temperature superconducting 
cable (HTS). The recommendation includes $850,000 for this 
initiative, the same as the amount included in the budget 
request.
    Program direction.--The Committee recommendation for 
program direction is $13,102,000. The Committee directs that 
$1,440,000 of this amount be used to pay one-time separation 
related costs to reduce the Federal headquarters workforce as 
discussed below. The remaining amount represents a 20% 
reduction from last year and is a significant departure from 
the 24% increase planned by the Administration.
    Last year, funding for solar and renewables was 
$112,805,000 less than fiscal year 1995--a 29% reduction. The 
Committee expected the Department to adjust both the Federal 
and support contractor workforce commensurate with the 29% 
reduction. The Committee notes that the headquarters workforce 
was reduced only 4%--from 148 in fiscal year 1995 to 142 in 
fiscal year 1996. The Committee further notes that the 
Department planned to increase the headquarters staff funding 
from the comparable appropriated level in fiscal year 1996 of 
$14,317,000 to $17,742,000 in fiscal year 1997--a 24% increase. 
The Committee notes that this headquarters staff increase is 
inappropriate given current budget constraints and the lower 
level of funding for solar and renewable programs. The 
Committee believes the headquarters staff should direct scarce 
resources directly to programs and cites the planned staff-
related increase as another example of the unrealistic funding 
increases being proposed by this Administration.
    The Committee directs that the Department significantly 
reduce the Federal employment levels in these programs which 
are being funded at a level 43% below the level in fiscal year 
1995. The Committee directs that the headquarters workforce be 
reduced from the 148 FTE level in fiscal year 1995 to a level 
of 84 FTEs in fiscal year 1997--representing a corresponding 
43% reduction.

                        nuclear energy programs

    The Committee recommendation is $182,934,000, a reduction 
of $48,039,000 from last year.
    Light water reactor.--The recommendation is $17,000,000, a 
$23,000,000 reduction from last year and from the 
Administration's request. The recommendation provides the 
Federal share of the first-of-a-kind engineering partnership 
with industry. The Committee notes that this is the final year 
of funding for this program.
    Advanced radioisotope power systems.--The recommendation 
includes $38,810,000 for the advanced radioisotope power 
systems program, a $1,190,000 (or 3%) reduction from the 
Administration's request.
    Nuclear technology research and development.--The 
recommendation includes $5,000,000 for the nuclear technology 
research and development program to continue study of treating 
spent fuel using electrometallurgical technology. The Committee 
has provided an additional $15,000,000 as part of the defense 
environmental restoration and waste management program for a 
total funding level of $20,000,000.
    University reactor fuel assistance and support.--The 
Committee recommendation is $4,000,000, a $500,000 increase 
over fiscal year 1996. The Committee notes that on March 31, 
1996, halfway through the current fiscal year, the unspent 
balances in this program were $4,517,000--129% of the amount 
appropriated last year.
    The Committee supports this program, particularly the peer-
reviewed Nuclear Engineering Education Research (NEER) program.
    Termination costs.--The Committee recommendation is 
$79,100,000, the same amount as the budget request.
    Isotope Support.--The Committee recommendation is 
$12,704,000, the same amount as the budget request.
    The Committee continues to be concerned about the level of 
administrative oversight supporting the Isotopes Support 
program. Accordingly, the Committee recommendation for isotope 
program direction is $1,000,000, a reduction of $580,000 from 
the budget request.
    Program direction.--The Committee's recommendation for 
program direction is adjusted in accordance with the downsizing 
of the nuclear energy program.

                     environment, safety and health

     The Committee recommendation is $100,500,000, a decrease 
of $11,706,000 from the budget request of $112,206,000.
    The program direction account is reduced from the request 
of $39,046,000 to $37,300,000, a reduction of $1,746,000. The 
Committee expects to see progress by the Department in reducing 
the Federal full time equivalents included in this account.
    The core environment, safety and health program is reduced 
from the request of $73,160,000 to $63,200,000, a reduction of 
$9,960,000 from the budget request. The request appears to 
include provisions for contractor employment levels which rival 
the Federal workforce included in the program direction 
account. Clearly, the level of contractor utilization proposed 
is excessive, most notably in the Technical Assistance and 
Management and Administration areas. The level recommended is 
intended to result in a timely and substantial downsizing of 
contractor support, specifically in the two aforementioned 
areas.
    Funding for the Radiation Effects Research Foundation is 
included at the budget request level of $15,000,000, $5,000,000 
below the fiscal year 1996 level. The Committee recognizes and 
applauds the recent five-year agreement negotiated between the 
Office of Environment, Safety and Health and the Japanese 
Ministry of Health and Welfare. The new agreement benefits both 
parties by lowering the financial burden attributed to the 
exchange rate differences, while maintaining a mutual 
commitment to the goals of the program. The Committee 
anticipates further negotiations including the important 
contribution of the National Academy of Sciences. The Committee 
expects the negotiations to include the goal of concluding U.S. 
participation in these activities after fulfillment of the 
scientific objectives of the program.
    Finally, the Committee does not approve of the planned use 
of resources to educate and develop a future Department 
workforce; accordingly, the Committee directs the Department to 
re-evaluate this part of the program.

                        energy research programs

    The Committee recommendation of $1,449,395,000 for Energy 
Research Programs reflects a net decrease of $69,152,000 from 
the cumulative fiscal year 1996 appropriated amount of 
$1,518,547,000. This lower funding level is mostly attributable 
to the $40,411,000 reduction to the biological and 
environmental research program as provided in the budget 
request, a $12,133,000 reduction related to reduced 
requirements of multi-program laboratories and a $26,400,000 
reduction in funding for certain activities under Other Energy 
Research which represents program activities not requested or 
included in other accounts.

                 biological and environmental research

    The Committee recommendation is $379,075,000, the same as 
the budget request.
     The Committee reiterates its strong and continued support 
for the identification and application of effective and cost-
efficient technologies to hasten the Department's environmental 
cleanup activities. To that end, full final year funding of 
$35,113,000 for the Environmental Molecular Sciences Laboratory 
is included.
    Within available funds, $9,000,000 is provided for 
continuing the research contribution of the National Institute 
for Global Environmental Change program. This is the same 
amount included in the Administration's request.
    The Committee encourages the Secretary of Energy to review 
the proposal by the Northern California Neutron Capture Therapy 
Study Group to establish a collaborative Boron Neutron Capture 
Therapy (BNCT) program using the nuclear radiation capabilities 
at the McClellan Nuclear Radiation Center. The program will 
help establish the efficacy of BNCT for the treatment of 
inoperable brain tumors and could expand to other difficult to 
treat malignancies. This program could complement the 
Department's existing BNCT program.
    The Committee wishes to reinforce its position that the 
Department be proactive in seeking out and using the expertise 
and knowledge base of the Energy Research programs and the 
national laboratories to address the multitude of complex 
challenges facing the environmental cleanup programs.

                             fusion program

    The Committee recommendation for the fusion energy sciences 
program is $225,000,000. Last year, the Committee provided 
$244,144,000 which included one-time termination costs.
    As requested by Congress, the Department of Energy and an 
expert review panel have proposed a restructured fusion energy 
sciences program. This new program supports--at a significantly 
reduced funding level--advancement of key fusion research areas 
and exploration of alternatives. The budget request is based 
upon an extensive review of the fusion program conducted by the 
Fusion Energy Advisory Committee (FEAC) and is described in the 
report entitled, ``A Restructured Fusion Energy Sciences 
Program.'' The Committee endorses the restructured program 
policy goals recommended by FEAC. However, due to the reduced 
funding in fiscal year 1997, implementation of the restructured 
program will proceed on a somewhat slower schedule. The 
Committee provides $17,000,000 for fusion plasma theory and 
$3,000,000 for basic plasma science.
    Three research facilities comprise the major experimental 
elements of the nation's fusion science and technology 
infrastructure--the Tokamak Fusion Test Reactor (TFTR) at 
Princeton, the Alcator C-Mod at MIT, and the DIII-D at General 
Atomics. Because these facilities make up an important 
component of the domestic fusion energy sciences program, the 
Committee provides funding for these facilities in fiscal year 
1997 at $52,000,000 for TFTR, $44,000,000 for DIII-D, and 
$12,000,000 for Alcator C-Mod. The Committee notes that in 
keeping with FEAC's recommendation, this will be the final year 
of operation for TFTR.
    In addition to the facilities listed above, a new small-
scale national initiative, the National Spherical Tokamak 
Experiment (NSTX), has been proposed to investigate innovative 
approaches to plasma confinement. Exploration of promising 
alternative concepts has been recommended by FEAC. The 
Committee provides $5,000,000 to begin construction of the NSTX 
facility in fiscal year 1997.
    The Committee's recommendation includes $7,600,000 which 
the Department requested for fusion-related support under the 
Computational and Technology Research program, and $8,400,000 
which the Department requested for fusion-related program 
direction. The Committee is providing the full $225,000,000 
directly to the Office of Fusion Energy Sciences to maintain 
comparability to the amount provided last year and to provide 
maximum flexibility to the Office. The Committee notes that the 
Federal headquarters workforce for the Office of Fusion Energy 
Sciences is excessive. The Committee directs that the Office 
reduce its Federal workforce by 25 percent by the end of fiscal 
year 1997.
    The scientific challenges posed by the international ITER 
project are consistent with the policy goals of the domestic 
fusion energy sciences program. Therefore, the Committee 
provides $55,000,000 for U.S. participation in the ITER design 
activities in fiscal year 1997.
    It is vital that the U.S. fusion energy sciences program 
make maximum effective use of its considerable human resources 
and facility infrastructure, while leveraging off the 
international programs. The Committee is committed to seeing 
that these objectives are implemented.

                         BASIC ENERGY SCIENCES

    The Committee recommendation for Basic Energy Sciences is 
$642,960,000, a net decrease of $10,715,000 from the budget 
request of $653,675,000. This represents a modest 1.6% 
reduction from the budget request.
    The Committee remains committed to robust basic energy 
research programs which are characterized by cutting-edge basic 
research, availability of world-class facilities to the 
scientific and research community, and direction to meet 
current and future energy-related challenges.
    The recommendation includes $7,000,000 for the Experimental 
Program to Stimulate Competitive Research (EPSCoR), the same 
amount provided in the budget request. The recommendation also 
includes $3,700,000 for the Midwest Superconductivity 
Consortium.
    For purposes of reprogramming during fiscal year 1997, 
funding may be reallocated by the Department among all 
operating accounts in basic energy sciences.

                     OTHER ENERGY RESEARCH PROGRAMS

    The Committee recommendation for the Computational and 
Technology Research program is $148,500,000, a reduction of 
$9,643,000 from the budget request of $158,143,000. Most of 
this reduction is the result of the Committee's redirection of 
funds included for fusion-related activities. The budget 
request included $7,600,000 under the computational and 
technology research program for fusion-related activities. The 
Committee has provided this funding as part of the fusion 
program, as it was last year. The recommendation represents a 
funding level of 98.6% of the budget request, adjusted to 
remove fusion-related activities.
    The Committee supports the budget request of $2,000,000 for 
the Energy Research Analysis program.
    The Committee recommendation for the energy research 
program direction account is $30,600,000, a decrease of 
$11,554,000 from the budget request. Most of this decrease is 
the result of the Committee's recommendation to redirect 
$8,400,000 from the request amount for program direction to the 
fusion energy sciences program. The Committee directs that 
$2,500,000 be used to reduce Federal salaries and benefits 
relating to reducing the Federal workforce. The balance of the 
reduction is to be targeted against the remaining activities in 
the account.
    The Committee recommendation for Multiprogram Energy 
Laboratory Support is $21,260,000, a decrease of $7,625,000 
from the budget request of $28,885,000. The Committee supports 
the budget request for construction projects which will 
maintain the viability of the multiprogram energy laboratories 
general purpose facilities and infrastructure. The 
recommendation does not include $7,625,000 for operations 
support. Any required operations support should be provided by 
the benefiting laboratory programs. The Committee does not 
agree with the proposed omnibus line item project which 
effectively relegates all existing line item construction 
projects to a sub-project level. It is the desire of the 
Committee to retain the integrity of prior year existing 
construction projects as stand-alone projects.

                       ENERGY SUPPORT ACTIVITIES

    The Committee recommendation for Energy Support Activities 
is $120,000,000, a decrease of $54,223,000 from the budget 
request of $174,223,000. The recommended level of $120,000,000 
is an increase of $88,000,000 above the fiscal year 1996 level 
and is principally caused by the movement of certain Federal 
employees from the Departmental Administration account into 
this account. These employees are located at four of the 
Department's field offices.
    Because of severe budget constraints and the demands of 
higher priority programs, the Committee recommendation excludes 
any funding for the University and Science Education programs. 
The Committee believes many of these educational activities are 
relevant to the Department's line programs. To the extent such 
activities benefit and are a byproduct of the line programs, 
those programs should, within available funding, be the 
educational sponsor.
    The Committee recommendation for the Technical Information 
Management program is $12,000,000, the same as the budget 
request.
    The Committee recommendation for Field Offices and 
Management is $108,000,000, a decrease of $13,723,000 from the 
budget request of $121,723,000. The Committee does not agree 
with the proposed move of the Headquarters field management 
organization from the Departmental Administration account to 
this account. Insofar as this organization is a servicing 
organization to the field elements in much the same respect as 
other organizations in the Departmental Administration account, 
the Federal staff and associated salaries and related support 
costs are to remain in the Departmental Administration account. 
The adjustment to move this organization back to Departmental 
Administration is reflected in the Committee recommendation and 
represents $12,802,000 of the $13,723,000 decrease. The 
recommended level essentially provides the request level for 
the remaining four Department field locations.
    The Committee has not included funding for the proposed new 
Management Information Systems Investment program.
    The Committee indicated in the FY 1996 House Report (104-
149) a need for the Department to integrate in-house energy 
management activities with the applicable operating programs 
and to eliminate the In-House Energy Management program as a 
stand-alone program. Notwithstanding this direction, the 
Department has defied the Committee and continued the program 
by using other available Department resources. Again, the 
Committee recognizes the contributions made by this program 
over many years in successfully incorporating energy efficiency 
measures and disciplines into line programs and facilities. 
However, the Committee position relative to incorporating this 
program into other applicable programs has not changed. 
Accordingly, the Committee provides no funds for In-House 
Energy Management and directs the Department to eliminate the 
In-House Energy program as a separate program.

             ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT

                             (NON-DEFENSE)

    The Committee recommendation is $622,146,000, a decrease of 
$29,268,000 from the budget request of $651,414,000. This 
level, however, is higher than the fiscal year 1996 level of 
$621,541,000.
    The Committee recommendation includes $6,250,000 to 
continue the Wayne, New Jersey project which is a part of the 
Formerly Utilized Sites Remedial Action Program.
    The Committee does not support the establishment of site 
operations as a new, stand-alone program element; accordingly, 
the Department is directed to fund such activities as part of 
the nuclear materials and facilities stabilization program 
element.

                          FUNDING ADJUSTMENTS

    The Committee directs the Department to apply unobligated 
and available uncosted balances to program termination 
expenses. To the extent these balances are insufficient to 
fully fund termination costs, the Department may reduce other 
programs funded by this account to cover any such shortfalls.
    The Administration's request includes an unspecified 
general reduction of $48,177,000. The Committee recommendation 
includes an adjustment of $48,177,000, the same as the budget 
request. The Committee opposes using a general reduction to 
programs and directs the Department to use prior year balances 
to fund programs to the levels recommended. The reduction of 
$48,177,000 is to be allocated on the basis of prior year 
unobligated and/or uncosted balances remaining in each program 
on September 30, 1996.
    A general reduction of $10 million is applied 
proportionately to all amounts under Energy Supply, Research 
and Development other than solar and renewable energy.

                Uranium Supply and Enrichment Activities

                           net appropriation

Appropriation, 1996.....................................     $29,294,000
Budget Estimate, 1997...................................      27,800,000
Recommended, 1997.......................................      11,772,000
Comparison:
    Appropriation, 1996.................................     -17,522,000
    Budget Estimate, 1997...............................     -16,028,000

                                revenues

Appropriation, 1996.....................................    $-34,903,000
Budget Estimate, 1997...................................     -42,200,000
Recommended, 1997.......................................     -42,200,000
Comparison:
    Appropriation, 1996.................................      -7,297,000
    Budget Estimate, 1997...............................................

    The Uranium Supply and Enrichment Activities program funds 
the Department's efforts in overseeing the government's 
continuing interest in the operation of the gaseous diffusion 
plants managed by the United States Enrichment Corporation 
(USEC); developing means for using or disposing of depleted 
uranium; monitoring Russian uranium processing facilities to 
ensure that low enriched uranium being purchased by USEC is 
derived from Russian highly enriched uranium removed from 
dismantled nuclear weapons; transferring enrichment-related 
technologies to the private sector; and leading the 
Department's uranium revitalization efforts.
    The budget request for fiscal year 1997 includes 
$87,266,000 for operation, maintenance, and construction 
activities, and is offset by the receipt of $42,200,000 in 
revenues and the use of $17,266,000 from unobligated balances 
carried over from prior years' funding, resulting in a net 
budget request of $27,800,000.
    Due to severe funding constraints, the Committee recommends 
a reduction of $16,028,000 from the budget request of 
$87,266,000. This includes reductions of $2,000,000 for program 
direction expenses; $4,000,000 in program management services; 
$8,000,000 in transparency measures; $1,000,000 in technology 
transfer; and $1,028,000 in all other expenses.
    Transparency Measures.--The Department has proposed to 
increase spending for transparency measures from $6,950,000 in 
fiscal year 1996 to $13,890,000 in fiscal year 1997. This 
program funds activities associated with monitoring the United 
States and Russian agreement to dispose of excess Russian 
weapons grade highly enriched uranium. The Committee does not 
support this increased funding level, and has provided 
$5,890,000 to support only site specific activities.
    Program Direction.--Last year the Committee directed a 
fifteen percent reduction in program direction expenses in this 
account. The Department unexpectedly found an additional 
$903,000 of prior year funds to supplement the program 
direction expenses by 20 percent. Any redirection of prior year 
funds to this program direction account in fiscal year 1997 
will require submission of a reprogramming request to the 
Committee.

      Uranium Enrichment Decontamination And Decommissioning Fund

Appropriation, 1996.....................................    $278,807,000
Budget Estimate, 1997...................................     240,200,000
Recommended, 1997.......................................     200,200,000
Comparison:
    Appropriation, 1996.................................     -78,607,000
    Budget Estimate, 1997...............................     -40,000,000

    The Uranium Enrichment Decontamination and Decommissioning 
(D&D) Fund supports D&D, remedial actions, waste management, 
and surveillance and maintenance associated with preexisting 
conditions at sites leased and operated by the newly created 
USEC, as well as Department of Energy facilities at these and 
other uranium enrichment sites. The sites covered by this D&D 
Fund include the operating uranium enrichment facilities at 
Portsmouth, Ohio, and Paducah, Kentucky, and the inactive K-25 
site in Tennessee, formerly called the Oak Ridge Gaseous 
Diffusion Plant. Environmental restoration efforts at these 
three sites are supported from the D&D Fund established by a 
tax on domestic utilities and by Congressional appropriations. 
In fiscal year 1997, the Department of Energy will transfer 
$376,648,000 into this Fund.
    Due to severe budget constraints, the Committee recommends 
$200,200,000, a reduction of $40,000,000 from the budget 
request of $240,200,000. The Committee understands that this 
will severely limit funding for activities related to immediate 
cleanup of the gaseous diffusion plants. However, most of these 
facilities do not currently present an imminent public health 
or safety risk.
    The Committee was also unable to provide full funding of 
$42,000,000 to implement the reimbursement program authorized 
under Title X, subtitle A of the Energy Policy Act for active 
uranium and thorium processing sites which sold uranium and 
thorium to the United States Government. This program is to 
assist site owners by compensating them on a per ton basis for 
the restoration and disposal costs of those mill tailings 
resulting from sale of materials to the government. Due to 
severe budget constraints, funding of $34,000,000 has been 
provided for reimbursement in fiscal year 1997.
    The Administration proposed legislation to collect fees 
from foreign utilities similar to the decontamination and 
decommissioning fund assessment that is being collected from 
domestic utilities. This proposed language has not been 
included by the Committee.

                General Science and Research Activities

Appropriation, 1996.....................................    $981,000,000
Budget Estimate, 1997...................................   1,009,150,000
Recommended, 1997.......................................     996,000,000
Comparison:
    Appropriation, 1996.................................     +15,000,000
    Budget Estimate, 1997...............................     -13,150,000

    The General Science and Research Activities account 
consists of the high energy physics and nuclear physics 
programs. High energy physics research seeks to understand the 
nature of matter and energy at the most fundamental level, as 
well as the basic forces which govern all processes in nature. 
The goal of nuclear physics research is to understand the 
structure and properties of atomic nuclei and the fundamental 
forces between the constituents that form the nucleus. Nuclear 
processes determine essential physical characteristics of our 
universe and the composition of the matter that forms it. 
Knowledge acquired in this basic research is an essential part 
of the intellectual foundation of other scientific disciplines. 
Deeper understanding correspondingly contributes to all of the 
scientific disciplines and to our Nation's technological base.
    While high energy physics and nuclear physics research 
programs are not directly associated with energy technology in 
the near or mid-term, they support basic research whose aim is 
to provide new knowledge which is expected to have long-term 
scientific and technological impacts on energy development and 
utilization and on other aspects of our society. The 
Committee's funding recommendation for General Science and 
Research Activities reflects the continued role of the Federal 
government in fundamental scientific research where research is 
not market-driven and is difficult or impossible for the 
private sector to conduct.
    The Committee recommendation includes a new program 
entitled ``Research and Technology'' which consolidates the 
funding and program activities formerly contained in ``Physics 
Research'' and ``High Energy Technology.'' This will provide 
greater flexibility in executing the high energy physics 
program and allocating resources among facilities and 
activities.
    Due to severe budget constraints, the Committee was unable 
to fund the full budget request. The recommendation for General 
Science and Research Activities is $996,000,000, a reduction of 
$13,150,000 from the budget request of $1,009,150,000, but an 
increase of $15,000,000 over fiscal year 1996. The Committee 
encourages the Department to: continue to pursue management 
improvements, such as reducing the requirements of internal 
regulations and the number of audits and oversight reviews; 
lessen administrative requirements at facilities and 
laboratories; and direct more of the funding to support direct 
program tasks.

                      Nuclear Waste Disposal Fund

Appropriation, 1996.....................................    $151,600,000
Budget Estimate, 1997...................................     200,028,000
Recommended, 1997.......................................     182,000,000
Comparison:
    Appropriation, 1996.................................     +30,400,000
    Budget Estimate, 1997...............................     -18,028,000

    The Nuclear Waste Policy Act of 1982 and the Nuclear Waste 
Policy Act Amendments of 1987 established a waste management 
system for the disposal of spent nuclear fuel and high-level 
radioactive waste from commercial and atomic energy defense 
activities. These laws also established the Nuclear Waste 
Disposal Fund to finance disposal activities through the 
collection of fees from the owners and generators of nuclear 
waste. The Committee recommends $182,000,000 to be derived from 
the Fund in fiscal year 1997, subject to authorization. 
Combined with the appropriation of $200,000,000 to the Defense 
Nuclear Waste Disposal account, a total of $382,000,000 will be 
available for program activities in fiscal year 1997. This 
amount is in addition to the $85,000,000 provided in Public Law 
104-46 for interim storage activities, subject to 
authorization.
    The Committee is encouraged by recent progress in 
characterization activities at the Yucca Mountain site. The 
Committee observes with pride that congressional direction to, 
``refocus the repository program on completing the core 
scientific activities at Yucca Mountain,'' has resulted in 
substantial cost efficiences and programmatic improvements. It 
bears noting that major reductions in program funding levels 
have been associated with acceleration of tunnel boring and 
scientific activities.
    Despite progress on Yucca Mountain characterization, the 
Committee remains frustrated that the nation's nuclear waste 
policy remains adrift. The Committee is especially dismayed 
that the Administration refuses to propose or endorse 
legislation to permit the Federal government to discharge its 
responsibility to accept spent fuel from commercial producers 
of nuclear energy by 1998. Although the Secretary has asked 
Congress to ``untie'' her hands to permit the pursuit of 
interim storage options, the Administration refuses to 
countenance any legislation to do exactly that. The 
Administration's lack of leadership on this issue seems 
calculated to yield short-term political gain; any such gain 
may be achieved at the expense of long-term domestic security. 
This policy of avoidance is irresponsible. The Committee urges 
the Administration to work with Congress on the development of 
a viable long-term policy for the storage and disposal of 
nuclear waste.
    The Committee is no longer willing to pour hundreds of 
millions of dollars into the nuclear waste disposal program 
without enactment of legislative reforms, provisions for the 
interim storage of nuclear waste, and a clear articulation of 
long-term national policy. Accordingly, the funds provided by 
this appropriation will be available only upon the enactment of 
specific authorization for their expenditure.
    Pending authorization of appropriations, the Committee is 
supportive of the Department's recent revision of the Civilian 
Radioactive Waste Management Program Plan, to the extent that 
it: supports efficient and aggressive pursuit of an early 
decision on the suitability of the Yucca Mountain site in 
Nevada as a geologic repository; achieves significant cost 
savings; and recommends process improvements to expedite 
assessment of the site's viability and repository licensing. 
Qualified endorsement of the revision in no way suggests waning 
enthusiasm for aggressive and immediate pursuit of interim 
storage options.
    The Committee is cognizant of the Department's strategy for 
market-based procurement of spent fuel transportation services 
and is anxious to discover the extent of industrial interest in 
this proposal.
    No funds are provided for the State of Nevada or affected 
units of local government. The balance of the reduction from 
the budget request is to be applied to program direction, 
cooperative agreements, and other budget elements not directly 
associated with the performance of characterization and interim 
storage activities.

                      Departmental Administration

                          Gross Appropriation

Appropriation, 1996.....................................    $366,697,000
Budget Estimate, 1997...................................     244,863,000
Recommended, 1997.......................................     195,000,000
Comparison:
    Appropriation, 1996.................................    -171,697,000
    Budget Estimate, 1997...............................     -49,863,000

                         Miscellaneous Revenues

Appropriation, 1996.....................................   $-122,306,000
Budget Estimate, 1997...................................    -125,388,000
Recommended, 1997.......................................    -125,388,000
Comparison:
    Appropriation, 1996.................................      -3,082,000
    Budget Estimate, 1997...............................................

    The funding recommended for Departmental Administration 
provides for general management and program support functions 
benefiting all elements of the Department of Energy. The 
account funds a wide array of activities not directly 
associated with program execution.
    Field Office Transfers.--In the Department's budget request 
for fiscal year 1997, four field offices and the Headquarters 
office of field management have been transferred to the Energy 
Supply, Research and Development appropriation account. The 
Committee agrees that the transfer of funding for the field 
offices more accurately portrays their multiprogram functions. 
However, the Committee does not agree that the transfer of the 
Headquarters office of field management is warranted. This is 
inherently a central Departmental activity and should remain in 
the Departmental Administration account.
    Working Capital Fund.--The Department has established a 
charge back program similar in nature to a formal working 
capital fund which charges benefiting programs and 
organizations with certain administrative and housekeeping 
activities traditionally funded in a central account. The 
Committee supports its implementation starting in fiscal year 
1997, but has certain expectations as part of this new funding 
proposal. Departmental representation on the Board establishing 
the policies should be broad based and include smaller 
organizations; the pricing policies used must be sound and 
defensible and not include added factors for administrative 
costs; the advanced payments at any time may be no more than 
that minimally required to adequately cover outstanding 
commitments and other reasonable activities; a defined process 
must be established to dispose of excess advance payments 
(accumulated credits); the fund must be audited at least 
annually by the Office of Inspector General; and the salaries 
and related costs of departmental administration employees who 
administer fund activities shall not be amortized and charged 
to the fund. Additionally, it is the Committee's expectation 
that the fund manager will ensure that the fund will neither be 
managed in a manner to produce a profit nor allow the program 
customers to use the fund as a vehicle for maintaining 
unencumbered funds. Finally, the Committee expects the working 
capital fund to be included as part of the Department's fiscal 
year 1998 budget request, and presented in a manner which 
clearly identifies the elements of cost and associated detail.
    Office of the Secretary.--The fiscal year 1997 budget 
request identified 24 employees in the Office of the Secretary, 
the Deputy Secretary, and the Under Secretary. However, 
information provided to the Committee identifies an additional 
27 employees working in these offices, but included on the 
rolls and paid for by other program organizations in the 
Department. The Committee considers this to be very misleading 
and expects the fiscal year 1998 budget request to accurately 
reflect all employees working in the Office of the Secretary, 
Deputy Secretary, and Under Secretary, and that these personnel 
be funded from the Secretary's budget account.

                        COMMITTEE RECOMMENDATION

    Due to severe budget constraints and the proposed 
downsizing of the Department of Energy, the Committee 
recommendation for administrative activities is $195,000,000, a 
decrease of $49,863,000 from the budget request of 
$244,863,000. Program activities in many areas of the 
Department are being reduced which should result in decreasing 
needs for administrative and support activities. The Committee 
expects the Department to begin immediately to restructure its 
administrative work force to achieve the necessary cost 
savings.
    Directed reduction.--The Committee recommendation includes 
a reduction of $5,000,000 which is to be allocated specifically 
to those organizations, including the Office of the Secretary, 
which directed the preparation of information transmitted to 
Congress on June 5, 1996, purporting to show the impact of the 
Subcommittee's proposed fiscal year 1997 602(b) allocation on 
the Department of Energy programs. As stated in the letter 
under the heading, Analytical Assumptions, ``* * * the 
Department has estimated the impact of the recent House 
allocations and anticipated Congressional action on these 
programs.'' After calculating this assumed impact, ``the 
reduction was spread in the same manner and pattern in which 
the House took reductions from the Department's FY96 request 
for these programs.'' Based on these assumptions, estimates, 
and anticipated Congressional actions, the Department proceeded 
to outline the funding impact of these reductions for each 
state and calculate the job losses.
    It is almost inconceivable that the Department of Energy 
has the time and people available to participate in an exercise 
with no value. If the Department has ample resources to conduct 
such a make-work exercise, then clearly it has too much funding 
and too many people.
    Staffing levels.--Last year Congress reduced funding for 
the Departmental Administration account and expected the 
Department to review its current organization structure to 
determine what functions could be significantly reduced, 
consolidated, or eliminated. The Department chose to deal with 
the Congressional direction by furloughing employees for 
several days and then seeking to establish a furlough relief 
fund to reimburse employees with private donations for those 
days that they did not work. Ultimately, the Department found 
additional funding within the account and proceeded to pay the 
employees for the time they were furloughed and did not work, 
an action which is also questionable. The Committee seriously 
questions the Department's management judgment in this matter, 
and has chosen to be more prescriptive in the fiscal year 1997 
funding recommendations.
    The Committee continues to believe that Headquarters 
staffing for administrative functions is excessive. The 
Department's own Strategic Alignment Initiative anticipates 
many of these reductions, but proposes to phase them in over a 
five year period. The Committee is sympathetic to the desire to 
make these reductions with minimal impact, but cannot support a 
five year effort to reduce personnel to the appropriate levels. 
Thus, the Committee's funding recommendation accelerates this 
schedule by reducing salaries and expenses requested for fiscal 
year 1997. Reductions are not to be prorated across each 
organization. The Committee expects the Department to assess 
objectively the workload and value added by many of these 
organizations and the redundancy which exists within program 
organizations which have created their own support staffs, 
thereby duplicating many of the central staff functions. 
Manpower ceilings recommended by the Committee, and included in 
the accompanying bill, are the following:
                                                                 Ceiling
Organization:
    Board of Contract Appeals...........................               6
    Chief Financial Office..............................             192
    Congressional, Public, and Intergovernmental Affairs              35
    Economic Impact and Diversity.......................              30
    Field Management....................................              20
    General Counsel.....................................             153
    Human Resources and Administration..................             550
    Office of the Secretary.............................              23
    Policy..............................................              20
                        -----------------------------------------------------------------
                        ________________________________________________
      Total.............................................           1,029

    Use of Prior Year Deobligations and Construction Project 
Reserves.--Throughout the fiscal year, funds often become 
available as projects are completed and contracts closed out. 
These funds become available for reuse and are retained by the 
Controller as either prior year deobligations or transferred to 
construction project reserve accounts. During fiscal year 1997 
these funds are not available for reallocation within the 
Department unless approved by Congress as part of a 
reprogramming or specifically identified in the budget request.
    Cost of Work for Others.--The recommendation for the cost 
of work for others program is $26,336,000, the same as the 
budget request. The Committee recognizes that funds received 
from reimbursable activities may be used to fund general 
purpose capital equipment which is used in support of those 
activities.
    Revenues.--The revenue estimate for fiscal year 1997 is 
$125,388,000, the same as the budget request, and an increase 
of $3,082,000 from the revenues estimated for fiscal year 1996.

                      Office Of Inspector General

Appropriation, 1996.....................................     $25,000,000
Budget Estimate, 1997...................................      29,605,000
Recommended, 1997.......................................      24,000,000
Comparison:
    Appropriation, 1996.................................      -1,000,000
    Budget Estimate, 1997...............................      -5,605,000

    The Office of Inspector General performs agency-wide audit, 
inspection, and investigative functions to identify and correct 
management and administrative deficiencies which create 
conditions for existing or potential instances of fraud, waste 
and mismanagement. The audit function provides financial and 
performance audits of programs and operations. The inspections 
function provides independent inspections and analyses of the 
effectiveness, efficiency, and economy of programs and 
operations. The investigative function provides for the 
detection and investigation of improper and illegal activities 
involving programs, personnel, and operations.
    Due to severe budget constraints and the proposed 
downsizing of the Department of Energy, the Committee 
recommendation is $24,000,000, a reduction of $5,605,000 from 
the budget request of $29,605,000. The Committee recommendation 
includes the elimination of the Office of Contractor Employee 
Protection, an office which duplicates services available in 
other areas, and whose workload is too small to justify 
maintaining a separate organization. Funding is provided only 
for termination of this office.

                    Atomic Energy Defense Activities

    The Atomic Energy Defense Activities programs of the 
Department of Energy include Weapons Activities; Defense 
Environmental Restoration and Waste Management; Fixed Asset 
Acquisition; Other Defense Programs; and Defense Nuclear Waste 
Disposal. Descriptions of each of these accounts are provided 
below.

                           Weapons Activities

Appropriation, 1996.....................................  $3,460,314,000
Budget Estimate, 1997...................................   3,710,002,000
Recommended, 1997.......................................   3,684,378,000
Comparison:
    Appropriation, 1996.................................    +224,064,000
    Budget Estimate, 1997...............................     -25,624,000

    The goal of the Weapons Activities program is to maintain 
the safety, security, and reliability of the nation's enduring 
nuclear weapons stockpile. This must be done within the 
constraints of a comprehensive test ban, using a science-based 
approach to stockpile stewardship and management in a smaller, 
more efficient weapons complex infrastructure. Since October 
1992, the United States has maintained a moratorium on 
underground nuclear testing and has explored other means to 
assure confidence in the safety, reliability and performance of 
nuclear weapons. The future weapons complex will rely on 
scientific understanding and expert judgment, rather than on 
underground nuclear testing and the development of new weapons 
to predict, identify, and correct problems affecting the safety 
and reliability of the stockpile. Enhanced experimental 
capabilities and new tools in computation, surveillance, and 
advanced manufacturing will become necessary to recertify 
weapons safety, performance, and reliability without 
underground nuclear testing. Weapons will be maintained, 
modified, or retired and dismantled as needed to meet arms 
control objectives or remediate potential safety and 
reliability issues. As new tools are developed and validated, 
they will be incorporated into a smaller, more flexible and 
agile weapons complex infrastructure for the future.

                                general

    Laboratory Directed Research and Development.--The 
Committee supports the recommendation of the House National 
Security Committee to limit the funding for laboratory directed 
research and development (LDRD) activities to two percent of 
the funding received by the laboratory, a reduction from the 
current level of six percent. While the Committee supports the 
use of some funding for innovative projects at the discretion 
of the laboratory director, current funding levels for LDRD 
activities at the three national weapons laboratories exceed 
$170,000,000. Continuing budget constraints dictate that 
savings be made in as many areas as possible.
    Outyear Funding.--The Committee is concerned that the 
Department continues to pursue a program which will require a 
substantial increase in resources in future years. The 
Administration's budget request acknowledges an anticipated 
$623,000,000 shortfall in funding for this account in fiscal 
year 1998. The proposal is footnoted to indicate that offsets 
will come from potential savings within the Department of 
Energy, possible additional user fees, and potential 
adjustments in future funding for discretionary programs in 
other agencies. The Administration seems content to propose 
funding levels and several new initiatives in fiscal year 1997 
which will be difficult to support in future years with 
continually constrained resources.
    The Committee's recommendation for Weapons Activities is 
$3,684,378,000, an increase of $224,064,000 over the fiscal 
year 1996 appropriation, and a decrease of $25,624,000 from the 
budget request of $3,710,002,000. Differences in funding levels 
between fiscal years 1996 and 1997 reflect the transfer of 
salaries and other expenses for Federal employees at field 
offices from the major program accounts to a separate program 
direction account. Details of the recommended funding levels 
follow.

                         STOCKPILE STEWARDSHIP

    The stockpile stewardship program addresses issues of 
maintaining confidence in stockpile safety and reliability 
without underground nuclear testing through a technically 
challenging science-based stockpile stewardship program 
utilizing upgraded or new experimental and computational 
capabilities. Funding of $1,601,767,000, an increase of 
$25,000,000 over the budget request of $1,576,767,000, has been 
recommended for fiscal year 1997. The additional funding is 
provided to support various stockpile stewardship activities at 
the nuclear weapons laboratories.
    Inertial Confinement Fusion.--The Committee recommends the 
budget request of $366,460,000 for the inertial confinement 
fusion program, and has included $21,150,770 for the University 
of Rochester's OMEGA laser, and $9,000,000 for the Naval 
Research Laboratory's Nike laser facility. The Committee has 
consistently supported these facilities and expects both to 
contribute to the research and technology development efforts 
in the inertial confinement fusion program.
    National Ignition Facility.--Funding of $191,000,000, the 
same as the budget request, has been provided for the National 
Ignition Facility. The Committee supports a strong stockpile 
stewardship program in the absence of underground nuclear 
testing, but is still concerned that it will be difficult to 
assure funds are available in the future to support this 
project as well as other critical needs in the weapons program.
    Dual-Axis Radiographic Hydrodynamic Test Facility.--The 
Committee understands that the stop work injunction issued by 
the Federal District Court in Albuquerque has been lifted and 
that construction of the facility will continue in fiscal year 
1997. No funding for this project was requested in fiscal year 
1997 as prior year funds will be available for needed 
activities.
    Technology Transfer and Education.--The Committee 
recommendation provides $59,400,000, the same as the budget 
request, for technology transfer and education programs. 
Technology transfer and education activities should be funded 
only to the extent that they directly support weapons program 
activities.
    Marshall Islands.--Funding of $6,800,000, the same as the 
budget request, for the Marshall Islands program has been 
provided in the Environment, Safety and Health program account 
in fiscal year 1997. This funding has been included in the 
weapons activities account in prior years. Responsibility for 
managing and funding the Marshall Islands program is under the 
purview of the Assistant Secretary of Energy for Environment, 
Safety and Health.

                          STOCKPILE MANAGEMENT

    The stockpile management program supports the enduring 
stockpile, including maintenance, system refurbishment, and 
weapons dismantlement, and seeks to ensure an adequate supply 
of tritium. The Committee recommendation for stockpile 
management is $1,823,831,000, an increase of $25,000,000 over 
the budget request of $1,798,831,000. The additional funding is 
provided for activities necessary to sustain a reliable, 
quality production capability to support the nuclear weapons 
stockpile as it ages.
    Tritium.--Funding of $100,000,000 as requested in the 
budget is provided to assure the availability of adequate 
supplies of tritium to meet future nuclear weapons stockpile 
requirements. The Department is pursuing a dual-track strategy 
which explores the use of a commercial light-water reactor or 
purchase of irradiation services from such a reactor, and the 
design and testing of components of an accelerator system for 
production of tritium.
    National Resource Center for Plutonium.--The Committee 
continues to support the National Resource Center for Plutonium 
in Amarillo, Texas. A total of $10,000,000 has been provided 
for the Center. Included in the stockpile management program is 
$5,000,000, and an additional $5,000,000 has been included in 
the fissile materials disposition program.

                           PROGRAM DIRECTION

    The budget request for program direction funding for fiscal 
year 1997 reflects the restructuring of the budget to include 
all salaries and expenses for Federal employees in a single 
program account. The budget request includes personnel 
expenses, capital equipment, and contractual services for 1,997 
Federal employees in Defense Programs' offices at Headquarters 
and in the field.
    The Committee recommendation of $258,780,000 for program 
direction is a reduction of $75,624,000 from the budget request 
of $334,404,000. This reflects a fifteen percent reduction in 
funding for personnel costs and travel expenses for Federal 
employees at Headquarters and in the field, and a fifty percent 
reduction in the use of advisory and assistance services. 
Funding of $161,237,000 requested for personnel costs is 
reduced by $24,186,000; funding of $15,837,000 requested for 
travel is reduced by $2,376,000; and funding of $98,130,000 
requested for advisory and assistance services is reduced by 
$49,062,000.

         Defense Environmental Restoration and Waste Management

Appropriation, 1996.....................................  $5,557,532,000
Budget Estimate, 1997...................................   5,409,310,000
Recommended, 1997.......................................   5,409,310,000
Comparison:
    Appropriation, 1996.................................    -148,222,000
    Budget Estimate, 1997...............................................

    The Environmental Management program is responsible for 
identifying and reducing risks and managing waste at sites 
where the Department carried out nuclear energy or weapons 
research and production activities which resulted in 
radioactive, hazardous, and mixed waste contamination requiring 
remediation, stabilization, or some other type of cleanup 
action. Environmental management activities are budgeted under 
the following accounts: Defense Environmental Restoration and 
Waste Management; Fixed Asset Acquisitions; Energy Supply, 
Research and Development; and the Uranium Enrichment 
Decontamination and Decommissioning Fund.
    The Defense Environmental Restoration and Waste Management 
account includes waste management functions, environmental 
restoration activities, technology development efforts, nuclear 
materials and facility stabilization activities, basic science 
activities, privatization efforts, and a variety of 
crosscutting and program management initiatives. In comparing 
fiscal year 1996 funding to the fiscal year 1997 request, in 
several instances the Department has restructured and 
consolidated program accounts. For example, salaries and 
expenses for Federal employees have been moved from individual 
program accounts and consolidated in a separate program 
direction account.
     The recommended funding for Defense Environmental 
Restoration and Waste Management is $5,409,310,000, the same as 
the budget request, but the Committee has recommended 
reallocating resources from program management activities to 
direct cleanup activities. Funding reductions are consistent 
with the recommendations of the House National Security 
Committee.

                                general

    The Committee encourages the Department to continue to 
prioritize Environmental Management spending on activities 
which directly support site closures. Mortgage reduction and 
project acceleration must be emphasized. The Department's 
seemingly directionless policy at many of the former nuclear 
materials production sites must be focused on those activities 
and facilities which can be brought to closure within a defined 
time frame. Current Department of Energy estimates indicate 
closure of many sites may not occur for 70 years and may cost 
$350,000,000,000. By not accelerating cleanup activities now, 
we risk the possibility that future budgets will be too 
constricted to support ongoing cleanup efforts, jeopardizing 
the safe shutdown of former defense facilities. The Committee 
particularly applauds the efforts of those cleanup sites such 
as Fernald and Rocky Flats which have developed their own 
accelerated cleanup programs with project schedules, 
milestones, and cost estimates against which progress can be 
measured.
    Report Requirement.--The Committee strongly supports the 
current initiative by the Assistant Secretary for Environmental 
Management to establish a ten year plan to clean up the most 
serious risks and reduce mortgages at each site. The Committee 
directs the Department to submit this ten year plan to Congress 
as part of the fiscal year 1998 budget submission. Those 
efforts to accelerate cleanup activities and reduce mortgages 
which may result in large cost savings over the life of the 
cleanup should be maximized. The Committee expects this ten 
year plan to support completion of most environmental 
activities and closure of many sites.
    Project Closure Fund.--The Committee directs the Department 
to include in its fiscal year 1998 budget request to Congress 
an account designated as a ``Project Closure Fund.'' The 
purpose of a closure project is, within a fixed period of time, 
to clean up and decommission a former defense nuclear facility 
or portion thereof and to make the facility safe by 
stabilizing, consolidating, or removing special nuclear 
materials from the facility. Sites and site contractors would 
be expected to clearly demonstrate and validate that candidate 
projects and/or facilities meet or exceed established criteria 
in order to be considered.
    Closure projects should, at a minimum, meet the following 
criteria; (1) define a clear, delineated scope of work for 
completion by a date certain; (2) demonstrate that the site has 
in place a regulatory agreement for the implementation of 
environmental remediation requirements that would allow 
successful completion of the closure project; (3) demonstrate 
the support, to the maximum extent possible, of State and local 
officials and the public; (4) show that the Department of 
Energy and the contractor have agreed upon a formula that puts 
the contractor's fee at risk in the event the closure project 
is not completed successfully in a timely manner, provided 
there is funding allocated for the closure project consistent 
with the initial project plan; and (5) demonstrate that the 
closure project can be completed in ten years or less from the 
date of its establishment. Additionally, the use of new and 
innovative cleanup technologies which hold broad-based 
potential for application to other locations and facilities 
should be encouraged.
    Initial funding for this account should be equal to ten 
percent of the total defense environmental restoration and 
waste management program. This funding is not to be designated 
for specific sites, but would be made available on a 
competitive basis to those sites which meet the established 
criteria. If there are not sufficient proposals to meet these 
criteria, the funding would remain in the account to be used 
the following year.
    Employment Levels.--The Committee understands that one of 
the most difficult tasks the Department faces is reducing 
contractor employment levels at cleanup sites. This is 
disruptive for the program, the site, and the community. 
However, the Department must also understand that unnecessarily 
maintaining high employment levels undercuts the credibility of 
the Department as it seeks to convince the Committee that the 
program is being managed in the most cost-effective manner. It 
has been acknowledged by some sites that employment reductions 
are necessary regardless of the funding levels because the 
current workforce level is not necessary to move into the next 
phase of the cleanup program. This should be viewed as a 
measure of progress in the cleanup program. The Department 
should be actively supporting this effort, not seeking to 
impede field office and contractor actions which can free up 
funding to accelerate necessary cleanup projects and reduce 
life cycle costs and schedules.
    Privatization.--The Committee continues to stress the need 
to improve efficiency and reduce costs in the environmental 
program, and urges the Department to use every means possible 
to broaden its use of existing companies with cleanup 
technologies and to maximize competition in its procurement 
processes. This should be done by outsourcing work 
traditionally performed by the Department's management and 
operating contractors, awarding fixed price or highly 
incentivized contracts, and expanding the use of privatization 
initiatives to purchase environmental management services.
    The Department is considering a number of privatization 
initiatives which, if successful, can be a cost-effective 
method to secure waste treatment, remediation, and 
decontamination and decommissioning services from the private 
sector. This should enable the environmental management program 
to do more cleanup with less funding and shorten the time 
required to do each cleanup. It is important that the 
Department begin to bring competency, innovation, and new or 
improved technology by private vendors to bear on solving 
environmental management problems.
    Temporary Reprogramming Authority.--Consistent with the 
recommendation of the House National Security Committee, the 
Committee has agreed to provide greater flexibility to meet 
changing funding requirements at former defense sites which are 
undergoing remedial cleanup activities. In fiscal year 1997, 
each site manager may transfer up to $5,000,000 between Defense 
Environmental Restoration and Waste Management programs and 
construction projects to reduce health or safety risks or to 
gain cost savings as long as no program or project is increased 
or decreased by more than $5,000,000 once during the fiscal 
year. This temporary reprogramming authority may not be used to 
initiate new programs or programs specifically denied, limited, 
or increased by Congress in the Act or report. The Committees 
on Appropriations in the House and Senate must be notified 
within thirty days after the reprogramming of funds occurs.
    Economic development.--The Committee wants to reiterate the 
position outlined in last year's conference report that none of 
the environmental management funds may be used for economic 
development activities. The Committee appropriates funding for 
the ``Worker and Community Transition Program'' which is the 
only program authorized in the Department to provide economic 
development funding for communities, and this is the proper 
forum for evaluating the merits of the many proposals which the 
Department receives for economic development funding.

                       environmental restoration

    The environmental restoration program assesses, remediates, 
and decontaminates and dismantles contaminated Department of 
Energy facilities and sites which are inactive or surplus to 
current program needs. The Committee recommendation is 
$1,812,194,000, an increase of $50,000,000 over the budget 
request of $1,762,194,000.
    Program management costs.--The environmental restoration 
budget identifies funding in each field office for activities 
performed by outside contractor employees, such as preparation 
of the Department's budget, development of activity data 
sheets, program assessment activities, community and 
stakeholder relations, public outreach, and strategic planning. 
Program management costs for some sites appear to exceed 25% of 
the total cleanup activity. This is unacceptable. The budget 
identifies approximately 2,500 Federal employees in the field 
offices who are to oversee and administer environmental 
management program activities. The additional need for 
contractor support to perform these activities is not apparent. 
Excess program management costs reduce funding which should be 
directed toward cleanup. The Committee directs the Department 
to significantly reduce or eliminate program management 
activities performed by contractors in the environmental 
restoration program, fully utilize Federal employees in 
performing these tasks, and reallocate those funds to direct 
cleanup activities.
    Accelerated Cleanup.--The Committee continues to support 
proposals to reduce costs and accelerate cleanup at sites such 
as Fernald and Rocky Flats, and expects the Department to make 
every effort to increase funding to advance these projects. The 
Committee recommendation includes an additional $50,000,000 to 
be used to accelerate cleanup at sites which have established 
cleanup schedules with firm dates for completion and which can 
be shown to be accelerated with additional funding. Last year 
the Committee provided additional funding for acceleration 
activities, but much of the money was spread among numerous 
small projects at many sites--amounts too small to have a 
noticeable impact on total site budgets and schedules. In 
fiscal year 1997 funding should be allocated in sufficient sums 
to demonstrate that total project costs can be reduced and 
overall cleanup schedules accelerated at a specific site or 
sites.

                            WASTE MANAGEMENT

    The waste management program treats, stores, and disposes 
of radioactive and hazardous wastes generated across the 
Department of Energy complex. The Committee recommendation is 
$1,536,653,000, the same as the budget request.

              NUCLEAR MATERIALS AND FACILITY STABILIZATION

    The nuclear materials and facility stabilization program 
was established to manage the activities related to surplus 
weapons complex facilities; to ensure that nuclear materials 
remaining in the facilities are placed in a form suitable for 
longer-term storage; and to deactivate the facilities. The 
Department has indicated that this program should be completed 
in the 2005-2010 time frame.
    The Committee recommendation for fiscal year 1997 funding 
is $1,269,290,000, an increase of $365,469,000 over the budget 
request of $903,821,000. This increase consists of two separate 
elements. The first is the transfer of $329,469,000 from the 
proposed site operations account to nuclear materials and 
facility stabilization as discussed below. The second is the 
addition of $36,000,000 to increase funding to reduce life 
cycle costs by accelerating existing activities, and reducing 
current mortgages for maintaining facilities which will 
ultimately be closed.
    Surveillance and maintenance costs for surplus activities 
are expensive and labor intensive. The Department should review 
the possibility of reducing costs without compromising safety 
by redefining the minimum safety requirements commensurate with 
each surplus facility, and by developing a validated, 
requirement-based estimate of surveillance and maintenance 
costs.

                            SITE OPERATIONS

    The Department proposes to create a new budget category for 
site operations in fiscal year 1997. This proposal seems to 
conflict with the Department's continued complaints that there 
are too many budget categories which limit their management and 
funding flexibility. Thus, the Committee has not agreed to 
establish a new program which would further limit the 
Department's ability to manage funding at each site.
    Fiscal year 1997 funding of $329,469,000 was requested for 
site operations. The Committee recommends transferring this 
funding to the nuclear materials and facility stabilization 
program. Funding for two new construction projects has not been 
included in the recommendation. The Committee remains concerned 
with the Department's proposal to initiate new construction 
projects at Departmental sites and facilities where ongoing 
missions are currently being evaluated, and where the 
possibility exists that the projects can be executed using new 
procurement mechanisms such as privatization which could 
ultimately reduce the cost of each project.
    Additionally, funds transferred for site operations should 
be reduced by $4,700,000 for program integration activities and 
$8,000,000 for transportation activities. This funding should 
be allocated to other high priority cleanup and decommissioning 
activities in the nuclear materials and facility stabilization 
program.

                         TECHNOLOGY DEVELOPMENT

    The Committee recommendation for technology development is 
$303,771,000, the same as the budget request. The Committee 
continues to hear that new, innovative, and cost-saving 
technologies available in the private sector are not being 
adopted by the Department and its contractors. The technology 
development office should be the driving force to ensure that 
new and innovative processes are evaluated and brought to bear 
on cleanup problems across the complex.
    The Committee recommends that the Department implement a 
pilot program whereby innovative technological approaches are 
considered for demonstration and application in order to 
achieve cost savings to the waste remediation and cleanup 
program. Performance-based criteria shall be utilized in the 
selection of such a technological approach. The Committee 
expects the Department to report in its Fiscal Year 1998 budget 
justification on the program's progress.
    University Robotics Program.--The Committee recommendation 
includes $4,000,000 for the university robotics program.
    Electrometallurgical Program.--The Committee recommendation 
includes $15,000,000 for the electrometallurgical treatment of 
DOE spent fuel. Funding of $5,000,000 for this program has been 
provided in the Energy Supply, Research and Development 
appropriation account; thus, a total of $20,000,000 is provided 
for this activity.

                         POLICY AND MANAGEMENT

    The Committee recommendation for this program is 
$23,155,000, a reduction of $25,000,000 from the budget request 
of $48,155,000. The recommendation also reallocates funding in 
this account to provide the fiscal year 1996 appropriated level 
of $8,788,000 for stakeholder affairs, $1,250,000 for training 
and education to implement the Defense Nuclear Facilities 
Safety Board Recommendation 93-3, and $13,117,000 for 
contractual services for planning, information management, 
budgeting, and engineering and cost management. The Committee 
is concerned that the training and education funding is being 
directed toward programs which have only a marginal benefit to 
cleanup activities, and has provided no funds in this account 
for funding specific colleges and universities, nor for 
providing contractual services for education activities.

                     ENVIRONMENTAL SCIENCE PROGRAM

    The Committee recommendation for the environmental science 
program is $62,136,000, an increase of $10,000,000 over the 
budget request. Within this funding, $50,000,000 has been 
provided for the basic science program. It is too early to 
measure the success of this initiative established by Congress 
last year, but the response of the university and laboratory 
community to the request for proposals is encouraging. The 
Committee continues to believe that the Office of Energy 
Research can most appropriately oversee the basic research 
aspects of environmental management, and expects the Department 
to support this management arrangement. A continuing and 
interactive relationship between the basic research programs of 
the Department and the technology development program must be 
established. The Committee expects the Office of Energy 
Research and the Office of Environmental Management to work 
closely in using these resources to pursue long-term solutions 
to cleanup problems which cannot be met with today's cleanup 
technologies.

                 ENVIRONMENTAL MANAGEMENT PRIVATIZATION

    The Committee supports the Department's efforts to seek new 
and innovative solutions to long-term cleanup problems such as 
the high-level waste tanks at the Hanford site in Richland, 
Washington, and has provided the budget request of 
$185,000,000. However, the Committee is concerned that the 
proposal to retrieve and vitrify 99% of the tank farm waste 
will ultimately cost almost $40 billion. While the Committee 
supports the initial pilot plant project, this is not a 
commitment for the full $40 billion project. The Committee is 
well aware of the millions of dollars already spent at Hanford 
in previous years when the Department and the State of 
Washington insisted on rushing to start construction of the 
Hanford Waste Vitrification Plant (HWVP) without thorough 
investigation of alternatives. Meeting an unrealistic milestone 
for the HWVP became the most important consideration and 
resulted in millions of wasted dollars and a canceled project. 
The Committee expects the Department: to move cautiously in 
executing this current program; pursue and take advantage of 
new technology developments which may occur; ensure that the 
tank waste disposal system is compatible with other cleanup 
decisions which have not yet been made for the site; and 
guarantee that final decisions are also in the best interest of 
the taxpayer.
    The Committee is also aware that the Department will soon 
select a new lead contractor for the Hanford facility. New 
contract provisions should result in cost savings at this site. 
The Committee strongly encourages the Department, to the 
maximum extent possible, to allocate those savings that result 
from the new management contract to the privatization program. 
This approach should help to diminish to some degree the 
negative budgetary impact that results from the creation of the 
privatization fund in fiscal year 1997 and should eliminate any 
negative impact on current cleanup activities at the Hanford 
facility. Creation of a privatization fund is not intended to 
interfere with or impede ongoing critical stabilization, 
maintenance, and cleanup operations at this site.

                           PROGRAM DIRECTION

    The Committee recommends $375,511,000, a reduction of 
$71,000,000 from the budget request of $446,511,000, for the 
program direction accounts in Headquarters and the field 
offices. This reduces the number of Headquarters Federal 
employees, reduces travel expenses at Headquarters and the 
field, and reduces advisory and assistance services by at least 
fifty percent from the budget request at Headquarters and in 
the field. The Committee understands and expects that this 
recommendation will result in fewer employees at Headquarters. 
Any attempt to mitigate the impact of this reduction by the use 
of unexpected prior year balances, furloughs, establishment of 
an employee relief fund, or use of other discretionary funds 
will require prior notification of Congress.

                          funding adjustments

    The Committee recommendation includes the use of 
$150,400,000 of prior year balances as requested by the 
Department, and the use of $8,000,000 from the Savannah River 
pension fund. The Committee directs the Department to provide a 
report by November 15, 1996, showing how the $150,400,000 of 
prior year balances have been allocated by program and site.

         Defense Environmental Restoration and Waste Management

                    fixed asset acquisition account

Appropriation, 1996.....................................................
Budget Estimate, 1997...................................    $182,000,000
Recommended, 1997.......................................     134,500,000
Comparison:
    Appropriation, 1996.................................    +134,500,000
    Budget Estimate, 1997...............................     -47,500,000

    As part of a separate fixed asset acquisition account 
outside the regular Department of Energy budget request, the 
President's budget request proposed an additional $182,000,000 
for privatization activities for high priority waste treatment 
projects at several sites. Using this contracting approach, 
private contractors will be responsible for the design, 
permitting, financing, construction, and operation of 
facilities needed to treat waste. The contractor will be paid 
by the Federal government upon successful delivery of treated 
waste meeting predetermined specifications. The Committee was 
unable to provide full funding for this activity, but has 
provided $134,500,000 to support these privatization 
initiatives.

                        Other Defense Activities

Appropriation, 1996.....................................  $1,388,212,000
Budget Estimate, 1997...................................   1,547,700,000
Recommended, 1997.......................................   1,459,533,000
Comparison:
    Appropriation, 1996.................................     +71,321,000
    Budget Estimate, 1997...............................     -88,167,000

    This account provides funding for Nonproliferation and 
National Security Programs which include Nonproliferation and 
Verification Research and Development, Arms Control, 
Intelligence, Emergency Management, Nuclear Safeguards and 
Security, Security Investigations, and Program Direction; 
Environment, Safety and Health (Defense); Worker and Community 
Transition; Fissile Materials Disposition; Nuclear Energy 
(Defense); and Naval Reactors. Descriptions of each of these 
programs are provided below.

       nonproliferation and verification research and development

    The nonproliferation and verification research and 
development program conducts applied research, development, 
testing, and evaluation of science and technology for 
strengthening the United States response to threats to national 
security and to world peace posed by the proliferation of 
nuclear weapons and special nuclear materials. Activities 
center on the design and production of operational sensor 
systems needed for proliferation detection, treaty 
verification, nuclear warhead dismantlement initiatives, and 
intelligence activities. The Committee recommendation is 
$194,919,000, the same as the budget request.

                   arms control and nonproliferation

    The arms control and nonproliferation program supports the 
Nation's arms control and nonproliferation policies by securing 
nuclear materials and expertise in Russia and the Newly 
Independent States; limiting weapons-usable fissile materials; 
establishing transparent and irreversible nuclear reductions; 
and controlling nuclear exports. The Committee recommendation 
is $169,544,000, a reduction of $11,700,000 from the budget 
request of $181,244,000. This recommendation includes 
$7,900,000, the amended budget request, for the North Korean 
program to can spent fuel from the research reactor, and a 
reduction of the $14,600,000 budget request for the Industrial 
Partnering Program. The recommendation includes the budget 
request of $90,000,000 for the materials protection, control 
and accounting program to secure and safeguard nuclear 
materials in Russia and the Newly Independent States.

                              intelligence

    The intelligence program provides information and technical 
analyses on international arms proliferation, foreign nuclear 
programs, and other energy related matters to policy makers in 
the Department and other U.S. Government agencies. The focus of 
the Department's intelligence analysis and reporting is on 
emerging proliferant nations, nuclear technology transfers, 
foreign nuclear materials production, and proliferation 
implications of the breakup of the Former Soviet Union. The 
Committee recommendation is $35,185,000, an increase of 
$6,000,000 over the budget request of $29,185,000. Consistent 
with the recommendations of the House National Security 
Committee, an additional $5,000,000 has been provided to expand 
counterintelligence activities at the nuclear weapons 
laboratories and other high-risk facilities, and $1,000,000 is 
provided for expanded analysis of the Russian and Chinese 
nuclear weapons programs.

                          emergency management

    The emergency management program encompasses all 
Departmental emergency management and threat assessment related 
activities, with the exception of the nuclear response 
activities funded in the Weapons Activities account, and 
ensures an integrated response to emergencies affecting 
Departmental operations and activities or requiring 
Departmental assistance. The Committee recommendation for 
funding is $16,794,000, the same as the budget request.

                    nuclear safeguards and security

    The nuclear safeguards and security program provides 
policy, programmatic direction, and training for the protection 
of the Department's nuclear weapons, nuclear materials, 
classified information, and facilities. The Committee 
recommendation for nuclear safeguards and security is 
$47,208,000, the same as the budget request.
    The Committee remains concerned that the Department is 
continuing to spend in excess of $800,000,000 annually for 
safeguards and security costs throughout the complex. Greater 
efforts must be made to reduce these costs. The Committee 
directs the Department to conduct an independent assessment of 
its current threat policy and the application of this policy to 
the various Departmental facilities and locations to determine 
whether substantially reduced security requirements are viable 
at some locations with attendant cost reductions. This 
independent assessment is to be conducted by individuals not 
employed by the Department or its contractors, or by a company 
or organization which does not receive funding from a 
contractual arrangement from either the Department or its 
contractors.
    The Committee is aware of the December 1995 Inspector 
General report titled, ``Audit of the Department of Energy's 
Site Safeguards and Security Plans.'' This report noted that 
the Office of Safeguards and Security presently issues policy 
guidance relative to the preparation of the Site Safeguards and 
Security Plans in which neither the affected Headquarters 
program offices nor the field sites have input or concur. 
Further, such guidance can and does at times result in 
unilaterally establishing expensive new security requirements 
for which no cost-benefit analyses are performed. The Committee 
recommends that the Department separate the responsibility for 
establishing Departmental security policy from the program 
office charged with the responsibility to implement the policy 
and ascertain compliance with the policy. The Committee 
believes this separation of responsibilities will provide an 
appropriate check and balance which may foster new and 
innovative approaches to continuing security concerns and 
simultaneously lead to substantial cost-savings.
    Declassification.--The Department has made several 
announcements concerning its new openness initiative to 
declassify information. However, in response to a Committee 
question, the Department stated that in fiscal year 1994 the 
Department classified 1,592,470 pages and declassified 213,800 
pages. In fiscal year 1995 the Department classified 1,438,140 
pages and declassified 337,210 pages. These statistics do not 
appear to support the Department's request for additional 
resources to continue declassification efforts. The Committee 
is concerned that funding is being provided for 
declassification of older documents, while the Department 
continues to classify current documents three times faster than 
they can be declassified. As part of the budget submission for 
fiscal year 1998, the Department should include an analysis of 
declassification efforts indicating anticipated results of the 
declassification initiative and proposals to limit the creation 
of new classified documents.

                        security investigations

    The security investigations program funds background 
investigations for Department of Energy and contractor 
personnel who, in the performance of their official duties, 
require access to restricted data, national security 
information, or special nuclear material. This program 
continues to maintain large uncosted balances each year. As a 
result, the Committee recommendation is $20,000,000, a 
reduction of $2,000,000 from the budget request of $22,000,000.

                           program direction

    At the direction of Congress, all expenses associated with 
Federal employees in fiscal year 1997 have been consolidated 
into a single program direction account for each organization. 
The fiscal year 1997 request for funding nonproliferation and 
national security Federal employees is $95,622,000, an increase 
of $12,813,000 over the fiscal year 1996 level of $82,809,000. 
The Committee recommendation is $80,622,000, a reduction of 
$15,000,000 from the budget request. This reduction is to be 
used to reduce the number of Federal employees at Headquarters 
and to reduce reliance on advisory and assistance services 
which were proposed to increase from $28,246,000 in fiscal year 
1996 to $33,414,000 in fiscal year 1997.

                ENVIRONMENT, SAFETY AND HEALTH (DEFENSE)

    The Environment, Safety and Health activities included in 
this account provide oversight processes to evaluate the 
effectiveness of the Department's environment, safety, health, 
and safeguards and security programs; fund epidemiologic 
studies to examine possible linkages between conditions at DOE 
sites and adverse health effects among workers and offsite 
populations; and oversee epidemiologic studies on the health of 
population groups in the Marshall Islands who have been exposed 
to ionizing radiation. The Committee recommendation is 
$63,800,000, the same as the budget request. Included in this 
recommendation is the budget request of $6,800,000 for Marshall 
Islands support.

                    WORKER AND COMMUNITY TRANSITION

    In accordance with Section 3161 of the National Defense 
Authorization Act of 1993, the worker and community transition 
program seeks to mitigate the impacts on workers and 
communities of contractor work force restructuring at defense 
sites, and assist community planning for defense conversion. 
The Committee recommendation is $57,000,000, a reduction of 
$10,000,000 from the budget request of $67,000,000.
    The Committee is concerned with reports that the Department 
is providing very generous separation and severance benefits to 
contractor employees who are separated, and that these generous 
packages are being offered to contractor employees hired after 
1991. Further, the Committee is concerned that at some sites, 
the contractors subsequently either rehire some of the 
separated workers or hire new employees with the skills of the 
separated workers because the field office and contractor 
failed to properly manage the downsizing. The Committee will be 
reviewing the Department's workforce restructuring process 
including the costs of employee buyout proposals to ensure that 
they do not exceed acceptable standards, and that they are also 
fair to the taxpayers who fund the payments.

                     FISSILE MATERIALS DISPOSITION

    The fissile materials disposition program is responsible 
for the technical and management activities to assess, plan and 
direct efforts to provide for the safe, secure, environmentally 
sound long-term storage of all weapons-usable fissile materials 
and the disposition of fissile materials declared surplus to 
national defense needs. The Committee recommendation is 
$93,796,000, the same as the budget request.
    The Committee encourages the Department of Energy to 
demonstrate to the world its commitment to the disposition of 
excess weapons plutonium by rapidly implementing the applicable 
Record of Decision. Accordingly, the Committee directs the 
Department to utilize commercially available and demonstrated 
technology and experience to deploy the options selected in the 
safest, most expedient, and cost-effective manner possible.

                        NUCLEAR ENERGY (DEFENSE)

    The budget request for nuclear energy activities includes 
funding for the international nuclear safety program and the 
nuclear security/Russian production reactor shutdown program. 
Descriptions of these programs follow.
    International Nuclear Safety.--The international nuclear 
safety program is designed to reduce the national security and 
environmental threats posed by the operation of unsafe and 
aging nuclear facilities around the world. This program has 
three basic elements: improve the safety of Soviet-designed 
nuclear power plants in Russia and the Newly Independent 
States; secure shutdown of the Chernobyl nuclear power plant in 
Ukraine; and maintain core competencies in nuclear safety 
through the establishment of international safety centers in 
the United States and elsewhere, and through cooperative 
research and development with other countries and international 
organizations.
    The budget request for this program in fiscal year 1997 is 
$66,200,000, an increase of $35,800,000 over the fiscal year 
1996 appropriation of $30,000,000 to the Department of Energy. 
The Committee has provided no funding for this program in 
fiscal year 1997. However, it should be noted that this program 
has a large funding balance available. Through May 31, 1996, 
the Department had spent less than $20,000,000 on this program, 
and had $80,000,000 available for expenditure.
    The Committee is also concerned that the Soviet-designed 
reactor program, which was originally envisioned to provide 
short-term assistance to make reactors safer and ultimately 
shut them down, is being expanded into a life extension program 
for Soviet-designed reactors. In light of no program plan, 
unclear mission needs, and huge funds available, no funding is 
provided. The Committee also questions the need for 
establishment of an International Nuclear Safety Center in the 
United States. It appears that the Department's interpretation 
of its role in this program has expanded beyond original intent 
to provide immediate short-term assistance to countries with 
Soviet-designed reactors.

                            NUCLEAR SECURITY

    The Nuclear Security program seeks to reduce the threats 
posed by continued operation of reactors in Russia and the 
Newly Independent States that produce weapons materials, and to 
promote management practices that minimize the risks of 
proliferation of weapons-usable nuclear materials. The budget 
request for this activity in fiscal year 1997 is $6,000,000. 
The Committee has provided the budget request of $2,500,000 for 
preparatory work for converting the fuel in three Russian 
production reactors so that they do not produce weapons-grade 
plutonium while producing heat and electricity. This will allow 
Russia the time needed to identify a replacement source for the 
heat and electricity produced by the reactors while still 
achieving nonproliferation objectives. No funding is provided 
for international nuclear safety activities, breeder reactor 
safety issues, or spent fuel management.

                             NAVAL REACTORS

    The Naval Reactors program is responsible for all aspects 
of Naval nuclear propulsion--from technology development 
through reactor operations to, ultimately, reactor plant 
disposal. This program provides for the design, development, 
testing, and evaluation of improved naval nuclear propulsion 
plants and reactor cores, and these efforts are critical to the 
continued success of over 120 reactors in operating submarines 
and surface ships, and to the New Attack Submarine class 
currently under development.
    The Committee recommendation is $681,932,000, an increase 
of $18,000,000 over the budget request of $663,932,000. 
Additional funding of $18,000,000 has been provided to continue 
test reactor inactivation efforts and preclude inefficiencies 
due to delaying environmental cleanup activities. Scheduled to 
be completed in fiscal year 2002, funding for these 
environmental remediation activities peaks in fiscal year 1997.

                          FUNDING ADJUSTMENTS

    The Committee recommendation includes the use of $3,767,000 
in prior year balances remaining in the canceled new production 
reactor program. The budget request did not propose the use of 
any prior year balances.

                     Defense Nuclear Waste Disposal

Appropriation, 1996.....................................    $248,400,000
Budget Estimate, 1997...................................     200,000,000
Recommended, 1997.......................................     200,000,000
Comparison:
    Appropriation, 1996.................................     -48,400,000
    Budget Estimate, 1997...............................................

    Since passage of the Nuclear Waste Policy Act of 1982, as 
amended, the Nuclear Waste Fund has incurred costs for 
activities related to disposal of high-level waste generated 
from the atomic energy defense activities of the Department of 
Energy. At the end of fiscal year 1995, the balance owed by the 
Federal government to the Nuclear Waste Fund was $1,098,000,000 
(including principal and interest). The Defense Nuclear Waste 
Disposal appropriation was established to ensure payment of the 
Federal government's contribution to the Nuclear Waste Fund. 
Through fiscal year 1995, a total of $380,500,000 has been paid 
into the Nuclear Waste Fund for atomic energy defense 
activities.
    The Committee recommends the fiscal year 1997 budget 
request of $200,000,000.

                       Power Marketing Activities

    Management of the Federal power marketing functions was 
transferred from the Department of Interior to the Department 
of Energy as directed in the Department of Energy Organization 
Act (Public Law 95-91). The functions include power marketing 
activities authorized under section 5 of the Flood Control Act 
of 1944 and all other functions of the Alaska Power 
Administration, Bonneville Power Administration, Southeastern 
Power Administration, Southwestern Power Administration, and 
the power marketing functions of the Bureau of Reclamation, now 
included in the Western Area Power Administration.
    All power marketing administrations except Bonneville are 
funded annually with appropriated funds. Revenues collected 
from power sales and transmission services are deposited in the 
Treasury. Bonneville operations are self-financed under 
authority of Public Law 93-454, the Federal Columbia River 
Transmission System Act of 1974, which authorizes Bonneville to 
use its revenues to finance operating costs, maintenance and 
capital construction, and sell bonds to the Treasury if 
necessary to finance any remaining capital program 
requirements.

         Operation and Maintenance, Alaska Power Administration

Appropriation, 1996.....................................      $4,260,000
Budget Estimate, 1997...................................       4,000,000
Recommended, 1997.......................................       4,000,000
Comparison:
    Appropriation, 1996.................................        -260,000
    Budget Estimate, 1997...............................................

    The Alaska Power Administration is responsible for 
operation, maintenance, and marketing of power for Alaska's two 
Federal hydroelectric projects. The operating projects are the 
30 MW Eklutna Project near Anchorage and the 78 MW Snettisham 
Project near Juneau. Project facilities include dams, 
reservoirs, powerplants, transmission systems, and necessary 
maintenance facilities.
    The Committee recommendation is $4,000,000, the same as the 
budget request. The Committee supports the transfer of assets 
authorized by the Alaska Power Administration Asset Sale and 
Termination Act (Public Law 104-58). If the transfer is 
completed before the end of fiscal year 1997, any unobligated 
appropriations must be returned to the Treasury.

                    Bonneville Power Administration

    The Bonneville Power Administration is the Federal electric 
power marketing agency in the Pacific Northwest, a 300,000 
square-mile service area that encompasses Oregon, Washington, 
Idaho, western Montana, and small portions of adjacent western 
States in the Columbia River drainage basin. Bonneville markets 
hydroelectric power from 30 Corps of Engineers and Bureau of 
Reclamation projects, as well as thermal energy from non-
Federal generating facilities in the region. Bonneville also 
markets and exchanges surplus electric power inter-regionally 
over the Pacific Northwest-Pacific Southwest Intertie with 
California, and in Canada over interconnections with utilities 
in British Columbia.
    Bonneville constructs, operates and maintains the Nation's 
largest high-voltage transmission system, consisting of 14,800 
circuit-miles of transmission line and 400 substations with an 
installed capacity of 22,212 MW. Public Law 93-454, the Federal 
Columbia River Transmission System Act of 1974, placed 
Bonneville on a self-financed basis. With the passage in 1980 
of Public Law 96-501, the Pacific Northwest Electric Power 
Planning and Conservation Act, Bonneville's responsibilities 
were expanded to include meeting the net firm load growth of 
the region, investing in cost-effective, region-wide energy 
conservation, and acquiring generating resources to meet these 
requirements.
    Eastern Canadian Intertie.--The Department requested 
language providing approval by Congress for initiation of 
construction of the Eastern Canadian Intertie (Grand Coulee Dam 
to the Canadian Border `Oliver') facility. This facility will 
provide transmission facilities that are required for returning 
the Canadian entitlement power to Canada under the 1964 
Columbia River Treaty. The Committee recommendation does not 
include this language. The Committee has deferred action on 
this issue to allow additional time for consultations about the 
line with interested parties.
    Energy Services Business Line.--The Committee believes that 
the proposed request for FY 97 to create a new Energy and 
Environmental Services business line at Bonneville are 
premature in light of the uncompleted regional review initiated 
by Congress and the Northwest Governors last year. Moreover, 
the Committee is concerned that these new business ventures by 
Bonneville may compete with existing private companies, both 
large and small. And finally, the Committee is concerned that 
any new business venture that is not specifically authorized by 
Congress should be fully scrutinized by the appropriate 
Committees to assure that any new obligations by Bonneville do 
not become contingent liabilities of the U.S. Treasury. The 
Committee denies the request for borrowing authority, 
appropriations, and reallocation of funds for these purposes 
pending the outcome of the regional review and approval by the 
appropriate Committees of the Congress. Bonneville should 
however continue to provide historic services to its existing 
customers. The Committee believes that if Bonneville has staff 
who are not being fully utilized, Bonneville should pursue 
reducing FTEs before expanding into new business ventures.
    Borrowing Authority.--A total of $3,750,000,000 has been 
made available to Bonneville as permanent borrowing authority. 
Each year the Committee reviews the budgeted amounts Bonneville 
plans to use of this total and reports a recommendation for 
these borrowing requirements. For fiscal year 1997, the 
Committee recommends an additional increment of $267,000,000 in 
new borrowing authority, a reduction of $20,000,000 from the 
budget request, for transmission system construction, system 
replacement, energy resources, fish and wildlife, and capital 
equipment programs. Funds have been reduced to ensure 
Bonneville does not initiate new programs prior to regional and 
Congressional reviews.
    Budget revisions and notification.--The Committee expects 
Bonneville to adhere to the borrowing authority estimates 
recommended by the Congress and promptly inform the Committee 
of any exceptional circumstances which would necessitate the 
need for Bonneville to obligate borrowing authority in excess 
of such amounts.
    Repayment.--During fiscal year 1997, Bonneville plans to 
pay the Treasury $851,000,000, of which $263,000,000 is to 
repay principal on the Federal investment in these facilities.
    Limitation On Direct Loans.--The Committee recommends that 
no new direct loans be made in fiscal year 1997.

 Operation and Maintenance, Southeastern Power Marketing Administration

Appropriation, 1996.....................................     $19,843,000
Budget Estimate, 1997...................................      20,900,000
Recommended, 1997.......................................      18,859,000
Comparison:
    Appropriation, 1996.................................        -984,000
    Budget Estimate, 1997...............................      -2,041,000

    The Southeastern Power Administration markets hydroelectric 
power produced at Corps of Engineers projects in 10 
southeastern states. There are 23 projects now in operation 
with an installed capacity of 3,092 megawatts. Southeastern 
does not own or operate any transmission facilities and carries 
out its marketing program by utilizing the existing 
transmission systems of the power utilities in the area. This 
is accomplished through ``wheeling'' arrangements between 
Southeastern and each of the area utilities with transmission 
lines connected to the projects. The utility agrees to deliver 
specified amounts of federal power to customers of the 
Government, and Southeastern agrees to compensate the utility 
for the wheeling service performed.
    The Committee recommendation of $18,859,000 is a decrease 
of $984,000 from last year. The Committee notes that at the end 
of fiscal year 1995, Southeastern had a balance of $17,230,000 
in unobligated and uncosted funds. The Committee is concerned 
about the level of carryover balances and will continue to make 
adjustments to appropriations that reflect the availability of 
these funds.

 Operation and Maintenance, Southwestern Power Marketing Administration

Appropriation, 1996.....................................     $29,778,000
Budget Estimate, 1997...................................      26,900,000
Recommended, 1997.......................................      25,210,000
Comparison:
    Appropriation, 1996.................................      -4,568,000
    Budget Estimate, 1997...............................      -1,690,000

    The Southwestern Power Administration is the marketing 
agent for the power generated at Corps of Engineers' 
hydroelectric plants in the six-state area of Kansas, Oklahoma, 
Texas, Missouri, Arkansas, and Louisiana with a total installed 
capacity of 2,158 megawatts. It operates and maintains some 
1,380 miles of transmission lines, 24 generating projects, and 
24 substations, and sells its power at wholesale primarily to 
publicly and cooperatively owned electric distribution 
utilities.
    The Committee recommendation for fiscal year 1997 is 
$25,210,000, a decrease of $4,568,000 from last year. The 
Committee notes that at the end of fiscal year 1995, 
Southwestern had a balance of $12,708,000 in unobligated and 
uncosted funds. The Committee is concerned about the level of 
carryover balances and will continue to make adjustments to 
appropriations that reflect the availability of these funds.

Construction, Rehabilitation, Operation and Maintenance, Western Power 
                        Marketing Administration

Appropriation, 1996.....................................    $257,652,000
Budget Estimate, 1997...................................     217,891,000
Recommended, 1997.......................................     211,582,000
Comparison:
    Appropriation, 1996.................................     -46,070,000
    Budget Estimate, 1997...............................      -6,309,000

    The Western Area Power Administration is responsible for 
marketing electric power generated by the Bureau of 
Reclamation, the Corps of Engineers, and the International 
Boundary and Water Commission. Western operates hydropower 
generating plants in 15 central and western states encompassing 
a 1.3 million square-mile geographic area. Western is also 
responsible for the operation and maintenance of 16,727 miles 
of high-voltage transmission lines with 257 substations.
    Western, through its power marketing program, must secure 
revenues sufficient to meet the annual costs of operation and 
maintenance of the generating and transmission facilities, 
purchased power, wheeling and other expenses, in order to repay 
all of the power investment with interest, and to repay that 
portion of the Government's irrigation and other nonpower 
investments which are beyond the water users' repayment 
capability. Under the Colorado River Basins Power Marketing 
Fund, which encompasses the Colorado River Basin, Fort Peck, 
and Colorado River Storage Facilities, all operation and 
maintenance and power marketing expenses are financed from 
revenues.
    The Committee recommendation for Western is $211,582,000, a 
decrease of $6,309,000 from the budget request. The Committee 
notes that at the end of fiscal year 1995, Western had a 
balance of $136,835,000 in unobligated and uncosted funds. The 
Committee is concerned about the level of carryover balances 
and will continue to make adjustments to appropriations that 
reflect the availability of these funds.
    Colorado River Dam Fund.--The Committee recommends bill 
language as requested by the Administration to implement the 
provisions of the Hoover Power Plant Act of 1984.

           Falcon and Amistad Operating and Maintenance Fund

Appropriation, 1996.....................................      $1,000,000
Budget Estimate, 1997...................................         970,000
Recommended, 1997.......................................         970,000
Comparison:
    Appropriation, 1996.................................         -30,000
    Budget Estimate, 1997...............................................

    Creation of the Falcon and Amistad Operation and 
Maintenance Fund was directed by the Foreign Relations 
Authorization Act, Fiscal Years 1994 and 1995. This legislation 
also directed that the Fund be administered by the 
Administrator of the Western Area Power Administration for use 
by the Commissioner of the United States Section of the 
International Boundary and Water Commission to defray 
operation, maintenance, and emergency costs for the 
hydroelectric facilities at the Falcon and Amistad Dams in 
Texas. Prior to fiscal year 1996, funds for Falcon and Amistad 
were included in the appropriations of the Department of State.
    The Committee recommendation is $970,000, the same level as 
the budget request. The Committee notes that on March 31, 1996, 
halfway through the current fiscal year, the unspent balances 
in this program were $830,000--83% of the amount appropriated 
last year.

                  Federal Energy Regulatory Commission

                         Salaries And Expenses

Appropriation, 1996.....................................    $131,290,000
Budget Estimate, 1997...................................     159,397,000
Recommended, 1997.......................................     141,290,000
Comparison:
    Appropriation, 1996.................................     +10,000,000
    Budget Estimate, 1997...............................     -18,107,000

                Salaries And Expenses--Revenues Applied

Appropriation, 1996.....................................    -131,290,000
Budget Estimate, 1997...................................    -159,397,000
Recommended, 1997.......................................    -141,290,000
Comparison:
    Appropriation, 1996.................................     -10,000,000
    Budget Estimate, 1997...............................     +18,107,000

    The Committee recommendation is $141,290,000, an increase 
of $10,000,000 over the amount provided last year. Revenues are 
established at a rate equal to the amount provided for program 
activities, resulting in a net appropriation of zero.
    On March 31, 1996, halfway through the fiscal year, the 
Commission had a balance of $692,000 in unallocated funds, 
$72,973,000 in unobligated funds and $40,864,000 in uncosted 
funds, representing a total unspent balance of $114,529,000. 
This balance includes appropriated funds that have yet to be 
made available to the offices that obligate the funds, 
appropriated funds for which contracts or grants have not yet 
been awarded and funds which have been obligated with costs 
that have yet to be incurred. This balance, on the books 
halfway through the current fiscal year, represents 87% of the 
appropriation provided last year. Consistent with the direction 
given in last year's conference report, the Committee 
encourages the Commission to apply carryover balances to meet 
fiscal year 1997 funding needs.
    The Committee supports the additional funding requested for 
implementing Orders 888 and 889, the regulatory changes that 
open the wholesale electricity market to competition, and 
establish a ``same-time'' information system to ensure that 
transmission owners and their affiliates do not enjoy an 
advantage over their competitors. The Committee recommends that 
the increase in funding for these activities be offset by 
decreases in funding for hydropower and natural gas and oil 
pipelines activities.
    As stated in the conference report last year, the Congress 
directed a specific reduction to the FTE level in the natural 
gas and oil program. The Committee notes that the FTE level in 
June, 1995, when the House report recommended a 10% reduction 
for FTEs, was 616. Last year's conference report recommended a 
20% reduction from fiscal year 1995 to fiscal year 1997. The 
Committee notes that the Commission appears to be on track to 
reach this goal (493 FTEs) by the end of fiscal year 1997.

                           General Provision

    The Committee has recommended a provision which creates a 
priority placement and job retraining program for employees who 
have been, or are about to be, separated from government 
service as a result of a reduction in force. The Department of 
Energy shall provide such employees priority placement for 
other Energy vacanies as they occur, and may provide job 
placement and counseling services.

                        Committee Recommendation

    The Committee's detailed funding recommendations for 
programs in Title III are contained in the following table.


                                TITLE IV

                          INDEPENDENT AGENCIES

                    Appalachian Regional Commission

Appropriation, 1996.....................................    $170,000,000
Budget Estimate, 1997...................................     170,000,000
Recommended, 1997.......................................     155,331,000
Comparison:
    Appropriation, 1996.................................     -14,669,000
    Budget Estimate, 1997...............................     -14,669,000

    The Appalachian Regional Commission (ARC) is a regional 
economic development agency established in 1965. It is composed 
of the Governors of the 13 Appalachian states and a Federal Co-
Chairman who is appointed by the President.
    The Committee recommends $155,331,000 for fiscal year 1997. 
Of the total amount appropriated, $3,331,000 is provided for 
salaries and expenses, $57,000,000 is provided for area 
development, and $95,000,000 is provided for highway 
development. The recommendation represents level funding for 
area development and an increase over the budget request for 
construction of the Appalachian Development Highway System; at 
the same time, the recommendation continues orderly downsizing 
of the Federal commission.

                Defense Nuclear Facilities Safety Board

                         Salaries and Expenses

Appropriation, 1996.....................................     $17,000,000
Budget Estimate, 1997...................................      17,000,000
Recommended, 1997.......................................      12,000,000
Comparison:
    Appropriation, 1996.................................      -5,000,000
    Budget Estimate, 1997...............................      -5,000,000

    The Defense Nuclear Facilities Safety Board was created by 
the Fiscal Year 1989 National Defense Authorization Act. The 
Board, composed of five members appointed by the President, 
provides advice and recommendations to the Secretary of Energy 
regarding public health and safety issues at the Department's 
defense nuclear facilities. The Board is responsible for 
reviewing and evaluating the content and implementation of the 
standards relating to the design, construction, operation and 
decommissioning of defense nuclear facilities of the Department 
of Energy.
    Consistent with agency reductions that the Committee has 
made throughout this bill in personnel salaries and expenses, 
the Committee recommendation is $12,000,000, a decrease of 
$5,000,000 from the budget request of $17,000,000. In 
downsizing, the Committee recommends that the Board focus 
primary oversight efforts on those defense nuclear facilities 
which are operational, and those facilities in standby or 
shutdown which represent the highest radiological risk to 
workers, the public, and the environment. Low risk 
environmental restoration projects are overseen by State and 
Federal regulators, and should not demand the attention of the 
Board.

                    Delaware River Basin Commission

                         Salaries and Expenses

Appropriation, 1996.....................................        $343,000
Budget Estimate, 1997...................................         342,000
Recommended, 1997.......................................................
Comparison:
    Appropriation, 1996.................................        -343,000
    Budget Estimate, 1997...............................        -342,000

    The Energy and Water Development Appropriations Act, 1996, 
provided final year funding for the Delaware River Basin 
Commission. Pursuant to and consistent with that Act, no funds 
are provided for the Commission in fiscal year 1997.

            Contribution to Delaware River Basin Commission

Appropriation, 1996.....................................        $428,000
Budget Estimate, 1997...................................         534,000
Recommended, 1997.......................................................
Comparison:
    Appropriation, 1996.................................        -428,000
    Budget Estimate, 1997...............................        -534,000

    The Energy and Water Development Appropriations Act, 1996, 
provided final year funding for the Delaware River Basin 
Commission. Pursuant to and consistent with that Act, no funds 
are provided for the Commission in fiscal year 1997.

            Interstate Commission on the Potomac River Basin

    Contribution to Interstate Commission on the Potomac River Basin

Appropriation, 1996.....................................        $511,000
Budget Estimate, 1997...................................         508,000
Recommended, 1997.......................................................
Comparison:
    Appropriation, 1996.................................        -511,000
    Budget Estimate, 1997...............................        -508,000

    The Energy and Water Development Appropriations Act, 1996, 
provided final year funding for the Interstate Commission on 
the Potomac River Basin. Pursuant to and consistent with that 
Act, no funds are provided for the Commission in fiscal year 
1997.

                     Nuclear Regulatory Commission

                          Gross Appropriation

Appropriation, 1996.....................................    $468,300,000
Budget Estimate, 1997...................................     475,300,000
Recommended, 1997.......................................     471,800,000
Comparison:
    Appropriation, 1996.................................      +3,500,000
    Budget Estimate, 1997...............................      -3,500,000

                                Revenues

Appropriation, 1996.....................................   -$457,300,000
Budget Estimate, 1997...................................    -457,800,000
Recommended, 1997.......................................    -457,300,000
Comparison:
    Appropriation, 1996.................................................
    Budget Estimate, 1997...............................        +500,000

                           Net Appropriation

Appropriation, 1996.....................................     $11,000,000
Budget Estimate, 1997...................................      17,500,000
Recommended, 1997.......................................      14,500,000
Comparison:
    Appropriation, 1996.................................      +3,500,000
    Budget Estimate, 1997...............................      -3,000,000

    The Omnibus Reconciliation Act of 1990, as amended, 
requires that the Nuclear Regulatory Commission recover 100 
percent of its budget authority, less the appropriation from 
the Nuclear Waste Fund, by assessing license and annual fees. 
The Committee recommends an appropriation of $471,800,000 for 
fiscal year 1997, $3,500,000 more than last year and $3,500,000 
less than the budget request.
    The recommendation includes $457,300,000 for salaries and 
expenses, the same as the amount provided last year, and 
$500,000 (or 0.1%) less than the budget request. This funding 
is fully recovered by fees and collections.
    The Committee includes $11,000,000 for activities related 
to the implementation of the Nuclear Waste Policy Act and in 
support of the Department of Energy's efforts to characterize 
Yucca Mountain as a potential site for a permanent nuclear 
waste repository. This funding is to be derived from the 
Nuclear Waste Fund, and the funds are provided subject to 
authorization of Nuclear Waste Fund expenditures for Department 
of Energy program activities. The recommendation is the same as 
last year's level and is $3,000,000 less than the budget 
request.
    The recommendation also includes $3,500,000, the same 
amount as the budget request, for activities related to 
commercial vitrification at the Hanford site. This funding is 
to be derived from general funds, not to be offset by fees and 
collections. No funding was provided for these activities last 
year.
    The Committee supports the continued downsizing of staff as 
proposed under the Standard Reactor Design cost center. 
However, the Committee opposes the proposed staff level 
increases under Reactor Regulation. This proposed increase 
appears to be inappropriate to the level of activity, 
considering: the maturation of the industry; the lack of 
nuclear power plants under construction; and a lower level of 
research and rulemaking services. The Committee urges the 
Commission to participate in the government-wide streamlining 
and downsizing effort and make additional reductions to its 
workforce.
    The Committee remains concerned about the high level of 
unobligated and uncosted balances. The Committee notes that the 
estimate of unobligated balances at the end of fiscal year 1995 
was $52 million, $11 million higher than the Commission's March 
1995 estimate and $27 million higher than the goal for fiscal 
year 1995. The Committee will continue to monitor the level of 
carryover balances and will make adjustments to reflect the 
availability of these funds.
    The Committee notes that last year's funding reduction has 
resulted in direct relief for power reactors, high and low 
enriched fuel facilities, and for professionals in the nuclear 
industry. The direction provided by Congress last year has 
resulted in a direct benefit to those who pay fees to the 
Commission. The following tables display the fee reductions 
made possible by last year's actions to reduce spending at the 
Commission.

----------------------------------------------------------------------------------------------------------------
                                                                           Fiscal year--                        
                                                                 --------------------------------    Reduction  
                                                                       1995            1996                     
----------------------------------------------------------------------------------------------------------------
Class of licensees:                                                                                             
    Power reactors..............................................      $3,826,400      $3,506,200       -$320,200
    High enriched fuel facilities...............................       2,931,625       2,805,852        -125,773
    Low enriched fuel facilities................................       1,488,781       1,462,665         -26,116
Typical materials licensees:                                                                                    
    Broad scope medical.........................................          23,200          21,700          -1,500
    Radiographers...............................................          13,900          13,000            -900
    Well loggers................................................           8,100           7,500            -600
    Gauge users.................................................           1,700           1,600            -100
----------------------------------------------------------------------------------------------------------------

                      Office Of Inspector General

                          Gross Appropriation

Appropriation, 1996.....................................      $5,000,000
Budget Estimate, 1997...................................       5,000,000
Recommended, 1997.......................................       5,000,000
Comparison:
    Appropriation, 1996.................................................
    Budget Estimate, 1997...............................................

                                Revenues

Appropriation, 1996.....................................      -5,000,000
Budget Estimate, 1997...................................      -5,000,000
Recommended, 1997.......................................      -5,000,000
Comparison:
    Appropriation, 1996.................................................
    Budget Estimate, 1997...............................................

    This appropriation provides for the Office of Inspector 
General of the Nuclear Regulatory Commission. Pursuant to law, 
budget authority appropriated to the Inspector General must be 
recovered through the assessment of license and annual fees.
    The Committee recommends an appropriation of $5,000,000, 
equal to the Administration's request and the amount provided 
last year. Pursuant to 42 U.S.C. 2214, this appropriation must 
be recovered through the assessment of license and annual fees, 
resulting in a net appropriation of $0.

                  Nuclear Waste Technical Review Board

Appropriation, 1996.....................................      $2,531,000
Budget Estimate, 1997...................................       3,214,000
Recommended, 1997.......................................       2,531,000
Comparison:
    Appropriation, 1996.................................................
    Budget Estimate, 1997...............................        -683,000

    The Committee recommendation provides continued funding for 
the Nuclear Waste Technical Review Board. The Nuclear Waste 
Policy Amendments Act of 1987 directs the Board to evaluate the 
technical and scientific validity of the activities of the 
Department of Energy's nuclear waste disposal program. The 
Board must report its findings not less than two times a year 
to the Congress and the Secretary of Energy.
    The Committee recommends level funding of $2,531,000. This 
is the same amount provided in fiscal year 1996.
    The Committee is disappointed that it must remind the Board 
that its statutory function is to, ``evaluate the technical and 
scientific validity of [nuclear waste disposal] activities'' of 
the Department of Energy (emphasis added). The Board's recent 
recommendations regarding the importance and timing of interim 
storage vis-a-vis permanent disposal of nuclear waste hardly 
amount to scientific and technical evaluations. Rather, these 
pronouncements involve the exact policy questions pending 
before Congress. Congress established the Board to ensure the 
most rigorous external scientific oversight of nuclear waste 
program operations. The Board's tangential policy excursions 
only serve to diminish its credibility as a scientific and 
technological resource. The Committee assures the Board that 
Congress does not suffer from a shortage of policy advice 
regarding Yucca Mountain and nuclear waste disposal.

                   Susquehanna River Basin Commission

                         Salaries and Expenses

Appropriation, 1996.....................................        $318,000
Budget Estimate, 1997...................................         322,000
Recommended, 1997.......................................................
Comparison:
    Appropriation, 1996.................................        -318,000
    Budget Estimate, 1997...............................        -322,000

    The Energy and Water Development Appropriations Act, 1996, 
provided final year funding for the Susquehanna River Basin 
Commission. Pursuant to and consistent with that Act, no funds 
are provided for the Commission in fiscal year 1997.

           Contribution to Susquehanna River Basin Commission

Appropriation, 1996.....................................        $250,000
Budget Estimate, 1997...................................         380,000
Recommended, 1997.......................................................
Comparison:
    Appropriation, 1996.................................        -250,000
    Budget Estimate, 1997...............................        -380,000

    The Energy and Water Development Appropriations Act, 1996, 
provided final year funding for the Susquehanna River Basin 
Commission. Pursuant to and consistent with that Act, no funds 
are provided for the Commission in fiscal year 1997.

                       Tennessee Valley Authority
Appropriation, 1996.....................................    $109,169,000
Budget Estimate, 1997...................................     120,000,000
Recommended, 1997.......................................      97,169,000
Comparison:
    Appropriation, 1996.................................     -12,000,000
    Budget Estimate, 1997...............................     -22,831,000

    The Committee recommends $97,169,000 for the appropriated 
programs of the Tennessee Valley Authority. The appropriation 
is distributed among TVA programs as follows:

Program:
    Economic Development................................     $16,000,000
    Land Between the Lakes..............................       5,000,000
    Stewardship Activities..............................      76,169,000
    Environmental Research Center.......................               0

    Economic Development.--In testimony before the Subcommittee 
on Energy and Water Development this year, TVA conceded that 
Economic Development is not an essential appropriated activity 
of the Authority. Further, TVA reported that it intends to 
phase out appropriations for the program over the next three 
years. The budget request of $16 million, the same amount 
appropriated in fiscal year 1996, does not reflect that intent. 
The Committee, which recommends the budget request, expects TVA 
to accelerate the program's phase-out after fiscal year 1997.
    Land Between the Lakes.--The Committee recommends 
$5,000,000 for Land Between the Lakes (LBL).
    In fiscal year 1996, Congress appropriated $5,000,000 for 
LBL and provided authority to transfer an additional $1,000,000 
from Stewardship funds in case of a severe lack of funds or an 
``emergency'' and/or ``crisis'' situation. TVA is exercising 
this special transfer authority and applying $6,000,000 to LBL 
in fiscal year 1996, while committing $1,565,000 of its fiscal 
year 1996 funds to capital improvement projects that were 
neither included in TVA's budget request nor approved by 
Congress. Furthermore, TVA has committed $1,317,000 in fiscal 
year 1995 funds for capital improvements at LBL. This was 
revealed in neither the fiscal year 1995 nor the fiscal year 
1996 budget justifications submitted to the Committee.
    Instead of moving toward greater financial self-sufficiency 
for LBL, TVA has avoided steps to downsize, despite the fact 
that its workforce is disproportionate to that of similarly 
situated parks and wildlife areas. Specific examples illustrate 
the point:

                                                                        
                                                          Acres per FTE 
                                                                        
Park:                                                                   
    Grand Canyon National Park........................             3,734
    Glacier Bay National Park and Reserve.............           113,213
    Yellowstone National Park.........................             4,400
    Badlands National Park............................             5,165
    Mojave National Park..............................            72,500
    Olympic National Park.............................             4,960
    Land Between the Lakes............................             1,553
                                                                        

    The recent public debate over alternative concepts for 
LBL's future has demonstrated the paramount importance that 
area residents place on maintaining the park in its natural 
conditions. It is tautological that an army of employees is not 
necessary for the maintenance of the park in its wild and 
natural state. Therefore, TVA is expected to focus on 
downsizing LBL and becoming more financially self-sufficient.
    In light of its poor management and budget practices with 
respect to LBL, TVA can expect continued close scrutiny of its 
future operations and budget requirements.
    Stewardship and Land and Water.--The Committee recommends 
$76,169,000 for Stewardship and Land and Water activities. This 
represents an increase of $6,000,000 over the fiscal year 1996 
level.
    Due to severe budgetary constraints and unsupportable 
outyear funding requirements, no funds have been included for 
activities associated with the replacement or reconstruction of 
Chickamauga Lock. The Committee does approve TVA's request of 
$2,000,000 for repairs to the existing Chickamauga Lock.
    The Committee understands that certain TVA communities are 
concerned that the frequency of reservoir drawdowns for dam 
safety inspections may have an unnecessarily negative impact on 
local economies. The Committee urges TVA to review its dam 
safety procedures to determine whether the cycle of safety 
inspections could be extended without appreciable impacts on 
safety.
    Environmental Research Center.--In testimony before the 
Subcommittee on Energy and Water Development, TVA acknowledged 
that operation of the Environmental Research Center (ERC) is 
not an essential appropriated activity of the TVA. The 
Committee agrees and, like last year, recommends termination of 
Federal participation in the ERC.
    Reprogrammings.--In an effort to improve TVA's budgetary 
accountability, the Committee requires that the Authority 
comply with the following reprogramming guidelines.
    Any proposed reprogramming of appropriated funds from or to 
any program, project or activity of TVA that would result in: a 
significant change in the scope of any program, project, or 
activity as described in the TVA budget justification submitted 
to Congress; the creation of any new program, project or 
activity; or an increase or decrease of more than $500,000 or 
10% of the total amount appropriated for any program, project 
or activity (whichever is less) requires that the chairmen of 
the House and Senate Subcommittees on Energy and Water 
Development be informed of the proposed action and be allowed 
at least thirty days in which to respond.
                                TITLE V

                           GENERAL PROVISIONS

    Section 501.--The Committee has included language stating 
the sense of the Congress that, to the greatest extent 
practicable, all equipment and products purchased with funds 
made available in this Act should be American-made.-
    Section 502.--The Committee has included language repealing 
section 508(f) of Public Law 104-46, the Energy and Water 
Development Appropriations Act, 1996. In fiscal year 1996, 
Congress provided the Administrator of the Bonneville Power 
Administration the authority to offer employees voluntary 
separation incentives not to exceed $25,000 as deemed necessary 
to reduce employment levels. The fiscal year 1997 budget 
request assumes that Bonneville employment levels will stay at 
the fiscal year 1996 level of 3,272 employees; thus, the 
Committee has included language repealing the permanent buyout 
authority.
    Section 503.--The Committee has included language repealing 
42 U.S.C. 7262 which provides authority to the Secretary of 
Energy to accept gifts, bequests, and devises of money. This 
change to the Department of Energy Organization Act, Public Law 
95-91, is deemed necessary to prevent the Secretary of Energy 
from using this account to augment appropriations for programs, 
projects, and activities for which funds were specifically 
limited in an annual appropriations Act.
    Section 504.--The Committee has included language repealing 
a provision included in Public Law 101-514, the Energy and 
Water Development Appropriations Act, 1991, which provided that 
in operation of the Shasta Dam, Central Valley Project, 
California, any increase in power purchase costs incurred by 
the Western Area Power Administration after January 1, 1986, 
resulting from bypass releases for temperature control purposes 
to preserve anadromous fisheries in the Sacramento River shall 
be nonreimbursable. Completion of the Shasta Temperature 
Control Device is scheduled for later this year, making this 
provision unnecessary in fiscal year 1997.
    Section 505.--The Committee has included language in the 
bill which provides that none of the funds appropriated or 
otherwise made available by the Act may be used to determine 
the final point of discharge for the interceptor drain for the 
San Luis Unit of the Central Valley Project until development 
by the Secretary of the Interior and the State of California of 
a plan, which shall conform to the water quality standards of 
the State of California as approved by the Administrator of the 
Environmental Protection Agency, to minimize any detrimental 
effect of the San Luis drainage waters. The language also 
provides that the costs of the Kesterson Reservoir Cleanup 
Program and the San Joaquin Valley Drainage Program shall be 
classified as reimbursable or nonreimbursable by the Secretary 
of the Interior as described in the Bureau of Reclamation 
report entitled, ``Repayment Report, Kesterson Reservoir 
Cleanup Program and San Joaquin Valley Drainage Program, 
February 1995'' and that any future obligation of funds for 
drainage service or drainage studies for the San Luis Unit 
shall be fully reimbursable by San Luis Unit beneficiaries 
pursuant to Reclamation law.
              HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS

    The following items are included in accordance with various 
requirements of the Rules of the House of Representatives.

                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4) of rule XI of the House of 
Representatives, the Committee estimates that enactment of this 
bill would have negligible or no overall inflationary impact on 
prices and costs in the operation of the national economy.

                   Comparison With Budget Resolution

    Section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, requires that the report accompanying a bill providing 
new budget authority contain a statement detailing how the 
authority compares with the reports submitted under section 602 
of the Act for the most recently agreed to concurrent 
resolution on the budget for the fiscal year. This information 
follows:

                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                602(b) Allocation                         This Bill             
                                     ---------------------------------------------------------------------------
                                       Budget authority       Outlays        Budget authority       Outlays     
----------------------------------------------------------------------------------------------------------------
Discretionary.......................             19,421             19,652             19,421             19,585
Mandatory...........................  .................  .................  .................  .................
----------------------------------------------------------------------------------------------------------------

    The bill provides no new spending authority as described in 
section 401(c)(2) of the Congressional Budget and Impoundment 
Control Act of 1974 (Public Law 93-344), as amended.

                         Five-Year Projections

    In compliance with section 308(a)(1)(C) of the 
Congressional Budget Act of 1974 (Public Law 93-344), as 
amended, the following information was provided to the 
Committee by the Congressional Budget Office:

                                                                Millions
Budget authority........................................          19,421
Outlays:
    1997................................................          12,752
    1998................................................           5,673
    1999................................................             821
    2000................................................              67
    2001 and beyond.....................................              43

          Financial Assistance to State and Local Governments

    In accordance with section 308(a)(1)(D) of Public Law 93-
344, the new budget authority and outlays provided by the 
accompanying bill for financial assistance to State and local 
governments are as follows:

                                                                Millions
Budget authority........................................             163
Fiscal year 1997 outlays resulting therefrom............               7

                           Transfer of Funds

    Pursuant to clause 1(b), rule X, the following is submitted 
describing the transfer of funds provided in the accompanying 
bill:
    Under Title II, Bureau of Reclamation, Construction 
Program:

          *  *  * of which $23,410,000 shall be available for 
        transfer to the Upper Colorado River Basin Fund 
        authorized by section 5 of the Act of April 11, 1956 
        (43 U.S.C. 602d), and $71,728,000 shall be available 
        for transfer to the Lower Colorado River Basin 
        Development Fund authorized by section 403 of the Act 
        of September 30, 1968 (43 U.S.C. 1543), and such 
        amounts as may be necessary shall be considered as 
        though advanced to the Colorado River Dam Fund for the 
        Boulder Canyon Project as authorized by the Act of 
        December 21, 1928, as amended: Provided, That of the 
        total appropriated, the amount for program activities 
        which can be financed by the reclamation fund shall be 
        derived from the fund: Provided further, That transfers 
        to the Upper Colorado River Basin Fund and Lower 
        Colorado River Basin Development Fund may be increased 
        or decreased by transfers within the overall 
        appropriation under this heading * * *

    Under Title II, Bureau of Reclamation, Special Funds:

      * * * Such sums shall be transferred, upon request of the 
Secretary, to be merged with and expended under the heads 
herein specified * * *

    Under Title III, Department of Energy, Western Area Power 
Administration:

          * * * of which $203,687,000 shall be derived from the 
        Department of the Interior Reclamation Fund: Provided, 
        That of the amount herein appropriated, $5,432,000 is 
        for deposit into the Utah Reclamation Mitigation and 
        Conservation Account pursuant to title IV of the 
        Reclamation Projects Authorization and Adjustment Act 
        of 1992: Provided further, That the Secretary of the 
        Treasury is authorized to transfer from the Colorado 
        River Dam Fund to the Western Area Power Administration 
        $3,774,000 to carry out the power marketing and 
        transmission activities of the Boulder Canyon project 
        as provided in section 104(a)(4) of the Hoover Power 
        Plant Act of 1984, to remain available until expended.

    Under Title IV, Nuclear Regulatory Commission:

          * * * Provided further, That from this appropriation, 
        transfer of sums may be made to other agencies of the 
        Government for the performance of the work for which 
        this appropriation is made, and in such cases the sums 
        so transferred may be merged with the appropriation to 
        which transferred: * * *

    Under Title IV, Nuclear Regulatory Commission, Office of 
Inspector General:

          * * * and in addition, an amount not to exceed 5 
        percent of this sum may be transferred from Salaries 
        and Expenses, Nuclear Regulatory Commission: Provided, 
        That notice of such transfers shall be given to the 
        Committees on Appropriations of the House and Senate: 
        Provided further, That from this appropriation, 
        transfers of sums may be made to other agencies of the 
        Government for the performance of the work for which 
        this appropriation is made, and in such cases the sums 
        so transferred may be merged with the appropriation to 
        which transferred: * * *

                 Changes in Application of Existing Law

    Pursuant to clause 3, rule XXI of the House of 
Representatives, the following statements are submitted 
describing the effect of provisions in the accompanying bill 
which may directly or indirectly change or be perceived to 
change the application of existing law.
    Title I--Language is included under Corps of Engineers, 
General Investigations, providing for detailed studies and 
plans and specifications of projects prior to construction.
    Language is included under Corps of Engineers, 
Construction, General, permitting the use of funds from the 
Inland Waterways Trust Fund. Language is also included under 
Construction, General directing the Secretary of the Army to 
use funds appropriated in Public Law 104-46 for construction of 
the Ohio River Flood Protection, Indiana, project.
    Under Construction, General, language is included that 
directs the Secretary of the Army to provide highway and other 
appropriate signs to direct the public to the bike trail which 
runs from Des Moines, Iowa, to the Big Creek Recreation Area at 
Saylorville Lake and the wildlife refuge in Jasper and Marion 
Counties authorized in Public Law 101-302.
    Under Construction, General, language is included directing 
the Secretary of the Army to begin implementation of the 
Passaic River Preservation of Natural Storage Areas, New 
Jersey, project using funds appropriated in Public Law 103-126.
    For Operation and Maintenance, General, Corps of Engineers, 
the following language is included:
          * * * including such sums as may be necessary for the 
        maintenance of harbor channels provided by a State, 
        municipality or other public agency, outside of harbor 
        lines, and serving essential needs of general commerce 
        and navigation; * * *
    Also under Operation and Maintenance, Corps of Engineers, 
language is included providing for construction, operation, and 
maintenance of outdoor recreation facilities.
    The bill includes language under Operation and Maintenance, 
General, Corps of Engineers, permitting the use of funds from 
the Harbor Maintenance Trust Fund.
    Under Operation and Maintenance, General, language is 
included that directs the Secretary of the Army to design and 
construct a landing at Guntersville, Alabama.
    Language is included in the bill under the Regulatory 
Program of the Corps of Engineers regarding the regulation of 
navigable waters and wetlands of the United States.
    Under Flood Control and Coastal Emergencies, language is 
included that directs the Secretary of the Army to use funds 
appropriated in the Act and funds appropriated in Public Law 
104-134 to rehabilitate non-Federal levees in Pierce County, 
Washington.
    Under General Expenses, language is included relating to 
the Coastal Engineering Research Board, the Humphreys Engineer 
Center Support Activity, the Engineering Strategic Studies 
Center, and the Water Resources Support Center.
    Also under General Expenses, Corps of Engineers, language 
is included prohibiting the use of other Title I funds for the 
Office of the Chief of Engineers and the Division Offices.
    Under General Expenses, the bill includes language 
permitting the use of funds to implement a plan to reduce the 
number of division offices.
    Under Administrative Provisions, Corps of Engineers, 
language is included providing that funds are available for 
purchase and hire of motor vehicles.
    Under General Provision, Corps of Engineers--Civil, the 
bill includes language that directs the Secretary of the Army 
to advertise for competitive bid at least 10,000,000 cubic 
yards of the hopper dredge volume accomplished with Government-
owned dredges in fiscal year 1992, and that permits the 
Secretary to utilize the Corps of Engineers' dredge fleet under 
certain conditions. Language is also included that provides 
that none of the funds appropriated in the Act may be used for 
improvements of the dredge McFarland.
    Title II--Language is included under Bureau of Reclamation, 
General Investigations and Construction Program providing that 
funds may be derived from the Reclamation Fund.
    Language is included under Bureau of Reclamation, General 
Investigations and Construction Program providing that funds 
contributed by non-Federal entities shall be available for 
expenditure.
    Under General Investigations, language is included 
providing that $500,000 shall be available to complete the 
appraisal study and initiate preconstruction engineering and 
design for the Del Norte County and Crescent City, California, 
Wastewater Reclamation Project and $500,000 shall be available 
to complete the appraisal study and initiate preconstruction 
engineering and design for the Fort Bragg, California, Water 
Supply Project.
    Language is included under Bureau of Reclamation, 
Construction Program providing that such sums as necessary 
shall be considered as though advanced to the Colorado River 
Dam Fund for the Boulder Canyon Project.
    Language is included under Bureau of Reclamation, 
Construction Program which permits funds transfers within the 
overall appropriation to the Upper Colorado River Basin Fund 
and the Lower Colorado River Basin Development Funds.
    Language is also included under Bureau of Reclamation, 
Construction Program, providing that the costs of safety of 
dams work at Coolidge Dam, Arizona, are in addition to the 
amount authorized for safety of dams work in 43 U.S.C. 506.
    Language is included which directs the Bureau of 
Reclamation, using funds appropriated for the Tucson Aqueduct 
System Reliability Investigation, to complete, by the end of 
fiscal year 1997, the environmental impact statement being 
conducted on the proposed surface reservoir and which directs 
the Bureau of Reclamation to work with the City of Tucson on 
any outstanding issues related to the preferred alternative.
    Language is included under Bureau of Reclamation, Operation 
and Maintenance making funds available until expended.
    For Operation and Maintenance, language is included 
providing that funds may be derived from the reclamation fund 
and the special fee account established pursuant to the Act of 
December 22, 1987.
    Clarifying language is included under Bureau of 
Reclamation, Operation and Maintenance relating to the costs of 
the examination of existing structures program.
    For the Bureau of Reclamation, Operation and Maintenance, 
funds collected and used pursuant to 43 U.S.C. 395 from water 
users are made available until expended.
    For the Loan Program, language is included regarding the 
source of appropriated funds.
    Language is included under General Administrative Expenses 
referring to the five Bureau of Reclamation regions.
    Language is included under General Administrative Expenses 
making the funds appropriated available until expended. 
Language is also included relating to the source of funds for 
General Administrative Expenses and prohibiting the use of 
other appropriations for general administrative functions.
    Language is included under Special Funds identifying the 
special funds authorized by law from which funds are made 
available to the Bureau of Reclamation as authorized.
    Under Administrative Provisions, Bureau of Reclamation, 
language is included providing for purchase of motor vehicles.
    Under the Department of the Interior, Central Utah Project 
Completion Account, language is included in the bill providing 
that funds are available for carrying out the responsibility of 
the Secretary of the Interior under the Central Utah Project 
Completion Act.
    Title III--Language is included under the Energy Supply, 
Research and Development account to restrict the use of 
$1,440,000l of funds provided for program direction to 
providing for termination expenses related to the reduction of 
FTEs in the Office of Energy Efficiency and Renewable Energy.
    Language is included under Uranium Supply and Enrichment 
Activities to permit the use of revenues received by the 
Department for residual uranium enrichment activities to reduce 
the appropriations as revenues are received. This language was 
included in last year's appropriations Act.
    Language is included under the Uranium Enrichment 
Decontamination and Decommissioning Fund making $34,000,000 of 
the amounts derived from the fund available for thorium and 
uranium company reimbursements.
    Language is included under Nuclear Waste Disposal Fund 
making appropriations from the Nuclear Waste Fund subject to 
authorization.
    Language is included under Nuclear Waste Disposal Fund 
providing that none of the funds appropriated under that 
heading shall be distributed to the State of Nevada or affected 
units of local government for financial assistance.
    Language is included under the Departmental Administration 
account, notwithstanding 31 U.S.C. 3302, and consistent with 
the authorization in Public Law 95-238, to permit the 
Department of Energy to utilize revenues to offset 
appropriations. The appropriations language for this account 
reflects the total estimated program funding to be reduced as 
revenues are received. This language has been carried in 
previous appropriations Acts.
    Language is included under the Departmental Administration 
account to permit the Department of Energy to cover increases 
in the cost of work for others provided that increases are 
offset by increased revenues, and waives 31 U.S.C. 1511 and 
3302. This language has been carried in previous appropriations 
Acts.
    Language is included under the Departmental Administration 
account limiting the number of employees who may be funded in 
this account.
    Language is included under the Bonneville Power 
Administration account precluding any new direct loan 
obligations.
    Language is included under the Southwestern Power 
Administration to permit Southwestern to utilize reimbursements 
from the Department of Defense, various Oklahoma companies, and 
other non-Federal entities, notwithstanding 31 U.S.C. 3302. 
This language has been carried in previous appropriations Acts.
    Language is included under Construction, Rehabilitation, 
Operation and Maintenance, Western Area Power Administration 
providing $5,432,000 for deposit into the Utah Reclamation 
Mitigation and Conservation Account pursuant to Title IV of the 
Reclamation Projects Act of 1992.
    Language is included under the Federal Energy Regulatory 
Commission to permit the hire of passenger motor vehicles, to 
provide for official entertainment expenses and to permit the 
use of revenues collected to reduce the appropriation as 
revenues are received.
    Language is included under the General Provision, 
Department of Energy, creating a priority placement and job 
retraining program for employees who have been, or are about to 
be, separated from government service as a result of a 
reduction in force.
    Title IV--Language is provided under the Appalachian 
Regional Development program waiving section 405 of the 
Appalachian Regional Development Act.
    Language is included under Nuclear Regulatory Commission 
making appropriations to the Nuclear Regulatory Commission from 
the Nuclear Waste Fund subject to authorization of Nuclear 
Waste Fund expenditures for Department of Energy program 
activities.
    Language is also included allowing transfer of 
appropriations to other agencies for certain necessary 
activities and waiving 31 U.S.C. 3302. This language has been 
carried in previous appropriations Acts. Language is included 
to exclude the costs of NRC pre-licensing activities related to 
the clean up of the Hanford site from license fee revenues. 
Language is also included to permit the NRC to utilize revenues 
collected to offset appropriations, notwithstanding 31 U.S.C. 
3302.
    Language is included under the Office of Inspector General 
to permit transfer of funds to other agencies for performance 
of work, and to utilize revenues collected to offset 
appropriations.
    Language is included under Nuclear Waste Technical Review 
Board making appropriations to the Board from the Nuclear Waste 
Fund subject to authorization of Nuclear Waste Fund 
expenditures for Department of Energy program activities.
    Title V--Language is included repealing section 508(f) of 
Public Law 104-46, the Energy and Water Development 
Appropriations Act, 1996. Section 508(f) provided the 
Administrator of the Bonneville Power Administration the 
authority to offer employees voluntary separation incentives 
not to exceed $25,000 as deemed necessary to reduce employee 
levels.
    Language is included repealing 42 U.S.C. 7262 which 
provides authority to the Secretary of Energy to accept gifts, 
bequests, and devises of money.
    Language is included repealing a provision included in 
Public Law 101-514, the Energy and Water Development 
Appropriations Act, 1991, which provides that in operation of 
the Shasta Dam, Central Valley Project, California, any 
increase in power purchase costs incurred by the Western Area 
Power Administration after January 1, 1986, resulting from 
bypass releases for temperature control purposes to preserve 
anadromous fisheries in the Sacramento River shall be 
reimbursable.
    Language is included which provides that none of the funds 
appropriated or otherwise made available by the Act may be used 
to determine the final point of discharge for the interceptor 
drain for the San Luis Unit of the Central Valley Project until 
certain conditions are met and which provides that the costs of 
the Kesterson Reservoir Cleanup Program and the San Joaquin 
Valley Drainage Program shall be classified as reimbursable or 
nonreimbursable by the Secretary of the Interior as described 
in the Bureau of Reclamation report entitled, ``Repayment 
Report, Kesterson Reservoir Cleanup Program and San Joaquin 
Valley Drainage Program, February 1995.''

                  appropriations not authorized by law

    Pursuant to clause 3 of rule XXI of the House of 
Representatives, the following table lists the appropriations 
in the accompanying bill which are not authorized by law:
    U.S. Army Corps of Engineers, Construction, General
    Department of Energy:
          Energy Supply, Research and Development Activities
          Uranium Supply and Enrichment Activities
          General Science and Research Activities
          Departmental Administration
          Office of Inspector General
          Nuclear Waste Disposal Fund
          Weapons Activities
          Defense Environmental Restoration and Waste 
        Management
          Other Defense Activities
          Defense Nuclear Waste Disposal
          Power Marketing Administrations
    Federal Energy Regulatory Commission
    Appalachian Regional Commission
    Defense Nuclear Facilities Safety Board
    Nuclear Regulatory Commission
    Office of Inspector General

    The Committee notes that the annual authorizing legislation 
for many of these programs is in various stages of the 
legislative process. It is anticipated these authorizations 
will be enacted into law later this year.

          COMPLIANCE WITH HOUSE RULE XIII, CLAUSE 3 (RAMSEYER)

    In compliance with clause 3 of Rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets):
    The accompanying bill would repeal section 508(f) of Public 
Law 104-46, the Energy and Water Development Appropriations 
Act, 1996.
    [(f) Personnel Flexibility.--The Administrator may offer 
employees voluntary separation incentives as deemed necessary 
which shall not exceed $25,000. Recipients who accept 
employment with the United States within five years after 
separation shall repay the entire amount to the Bonneville 
Power Administration.]

    The accompanying bill would repeal 42 U.S.C. 7262.

[Sec. 7262. Gifts, bequests, and devises

    The Secretary is authorized to accept, hold, administer, 
and utilize gifts, bequests, and devises of property, both real 
and personal, for the purpose of aiding or facilitating the 
work of the Department. Gifts, bequests, and devises of money 
and proceeds from sales of other property received as gifts, 
bequests, or devises shall be deposited in the Treasury and 
shall be disbursed upon the order of the Secretary. Property 
accepted pursuant to this section, and the proceeds thereof, 
shall be used as nearly as possible in accordance with the 
terms of the gift, bequest, or devise. For the purposes of 
Federal income, estate, and gift taxes, property accepted under 
this section shall be considered as a gift, bequest, or devise 
to the United States.]

    The accompanying bill would amend Public Law 101-514, the 
Energy and Water Development Appropriations Act, 1991.

[: Provided, That in the operation of Shasta Dam, Central 
Valley Project, California, any increase in power purchase 
costs incurred by the Western Area Power Administration after 
January 1, 1986, resulting from bypass releases for temperature 
control purposes to preserve anadromous fisheries in the 
Sacramento River shall be nonreimbursable.]


            ADDITIONAL VIEWS OF REPRESENTATIVE NANCY PELOSI

    This Committee Report includes a statement under the 
category entitled ``Central Valley Project Restoration Fund,'' 
noting that the Administration's budget request did not include 
funds for the San Joaquin River Basin Resource Management 
Initiative and concurring with that request. The Initiative is 
the line item that has been used for Restoration Fund 
expenditures on the CVPIA's San Joaquin River Comprehensive 
Plan.
    It is correct that the Administration's budget request 
included no Restoration Fund money for this study, a 
regrettable decision by the Secretary of the Interior that 
suggests that the Secretary has no intention of complying with 
a statutory requirement. The Administration is under a 
statutory deadline to complete the Comprehensive Plan this fall 
and nothing in this or previous appropriations bills has 
relieved them of that obligation.
    The Comprehensive Plan is a common sense study of options 
that cannot by itself lead to any water reallocation or other 
action that could pose a threat to anyone. It simply is 
intended to provide the Secretary with basic research and a 
series of options that explore the potential for restoring the 
devastated San Joaquin River. The study is as essential now as 
ever and I urge the Secretary to employ his numerous other 
authorities to complete this important Plan as expeditiously as 
possible, even if this ill-advised cutoff of Restoration Fund 
monies remains in the bill.

                                                       Nancy Pelosi

                                
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