[House Report 107-102]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-102

======================================================================



 
MAKING SUPPLEMENTAL APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 
                    30, 2001, AND FOR OTHER PURPOSES

                                _______
                                

 June 19, 2001.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Young of Florida, from the Committee on Appropriations, submitted 
                             the following

                              R E P O R T

                             together with

                    DISSENTING AND ADDITIONAL VIEWS

                        [To accompany H.R. 2216]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
supplemental appropriations for the fiscal year ending 
September 30, 2001, and for other purposes.

                            Bill Highlights

    The bill recommended by the Committee provides a net 
discretionary supplemental appropriation of $6,544,580,000 for 
fiscal year 2001, and is consistent with the provisions for 
fiscal year 2001 supplemental appropriations of H. Con. Res. 
83, the fiscal year 2002 budget resolution. Total spending 
provided in the bill is $7,481,283,000 including $6,750,352,000 
for national security requirements, $2,168,931,000 for 
nondefense requirements, and $1,438,000,000 in offsetting 
reductions. The bill includes $6,455,380,000 for the Department 
of Defense to cover increased operating costs, as well as to 
cover requirements for pay, support, training and quality of 
life for military personnel. It also includes $288,472,000 for 
defense-related requirements at the Department of Energy. The 
bill includes $389,200,000 for disaster-related needs for the 
Corps of Engineers, Department of the Interior, and the Forest 
Service. Additionally, the Low Income Home Energy Assistance 
Program would be supplemented by $300,000,000; the Education 
for the Disadvantaged account would be supplemented by 
$161,000,000, and the Coast Guard would receive $92,000,000 for 
operating expenses. The bill also includes $115,776,000 million 
for the implementation of the recently enacted tax rebate. 
Additional mandatory appropriations totalling $936,413,000 are 
included for veterans' benefits.

                                TITLE I


                       NATIONAL SECURITY MATTERS


                               CHAPTER 1


                    DEPARTMENT OF DEFENSE--MILITARY


                           MILITARY PERSONNEL

    The supplemental request included $515,000,000 for 
functions funded in title I, Military Personnel, of the 
Department of Defense Appropriations Act. The Committee 
recommends $515,000,000. The following table summarizes the 
requested amounts and the Committee recommendations.

                        [In thousands of dollars]
------------------------------------------------------------------------
                                                           Committee
              Program                    Request         recommendation
------------------------------------------------------------------------
Legislated Pay Entitlements.......          $116,000           $116,000
    Military Personnel, Army......           (33,000)           (33,000)
    Military Personnel, Navy......           (30,000)           (30,000)
    Military Personnel, Marine               (10,000)           (10,000)
     Corps........................
    Military Personnel, Air Force.           (28,000)           (28,000)
    Reserve Personnel, Army.......            (4,000)            (4,000)
    Reserve Personnel, Air Force..            (2,000)            (2,000)
    National Guard Personnel, Army            (6,000)            (6,000)
    National Guard Personnel, Air             (3,000)            (3,000)
     Force........................
Basic Allowance for Housing Survey           210,000            210,000
    Military Personnel, Army......           (78,000)           (78,000)
    Military Personnel, Navy......           (13,000)           (13,000)
    Military Personnel, Marine               (45,000)           (45,000)
     Corps........................
    Military Personnel, Air Force.           (59,000)           (59,000)
    Reserve Personnel, Army.......            (6,000)            (6,000)
    National Guard Personnel, Air             (9,000)            (9,000)
     Force........................
Subsistence.......................            28,000             28,000
    Military Personnel, Army......           (28,000)           (28,000)
Reserve Training..................            42,000             48,500
    Reserve Personnel, Army.......           (42,000)           (42,000)
    Reserve Personnel, Air Force..                (0)            (6,500)
Officer Pay Table Reform..........            28,000             28,000
    Military Personnel, Navy......           (28,000)           (28,000)
Permanent Change of Station Moves.            58,000             58,000
    Military Personnel, Army......           (25,000)           (25,000)
    Military Personnel, Navy......           (13,000)           (13,000)
    Military Personnel, Marine               (14,000)           (14,000)
     Corps........................
    Military Personnel, Air Force.            (6,000)            (6,000)
Recruiting and Retention..........            33,000             26,500
    Military Personnel, Air Force.           (33,000)           (26,500)
------------------------------------------------------------------------

                       OPERATION AND MAINTENANCE

    The supplemental request included $2,885,700,000 for 
functions funded in title II, Operation and Maintenance, of the 
Department of Defense Appropriations Act. The Committee 
recommends $2,936,200,000. The following table summarizes the 
requested amounts and the Committee recommendations.

                        [In thousands of dollars]
------------------------------------------------------------------------
                                                           Committee
              Program                    Request         recommendation
------------------------------------------------------------------------
Flying Hours......................          $970,000           $970,000
    Operation and Maintenance,              (425,000)          (425,000)
     Navy.........................
    Operation and Maintenance, Air          (418,000)          (418,000)
     Force........................
    Operation and Maintenance,               (20,000)           (20,000)
     Defense-Wide.................
    Operation and Maintenance, Air           (14,000)           (14,000)
     Force Reserve................
    Operation and Maintenance, Air           (93,000)           (93,000)
     National Guard...............
Focused Relief....................            36,000             36,000
    Operation and Maintenance,               (10,700)           (10,700)
     Army.........................
    Operation and Maintenance,                (7,000)            (7,000)
     Navy.........................
    Operation and Maintenance, Air            (3,800)            (3,800)
     Force........................
    Operation and Maintenance,               (14,500)           (14,500)
     Defense-Wide.................
Base Operations...................           414,000            407,000
    Operation and Maintenance,              (300,000)          (300,000)
     Army.........................
    Operation and Maintenance,               (83,000)           (83,000)
     Navy.........................
    Operation and Maintenance, Air            (7,000)                (0)
     Force........................
    Operation and Maintenance,                (7,000)            (7,000)
     Army Reserve.................
    Operation and Maintenance,                (7,000)            (7,000)
     Navy Reserve.................
    Operation and Maintenance,               (10,000)           (10,000)
     Army National Guard..........
Second Destination Transportation.            62,000             50,000
    Operation and Maintenance,               (62,000)           (50,000)
     Army.........................
Force Protection..................            33,000             33,000
    Operation and Maintenance,               (22,000)           (22,000)
     Navy.........................
    Operation and Maintenance,               (11,000)           (11,000)
     Marine Corps.................
Contractor Logistics Support......            63,000             63,000
    Operation and Maintenance, Air           (63,000)           (63,000)
     Force........................
Joint Exercises...................            11,000             11,000
    Operation and Maintenance, Air           (11,000)           (11,000)
     Force........................
EHIME MARU........................            36,000             36,000
    Operation and Maintenance,               (36,000)           (36,000)
     Navy.........................
Utilities.........................           465,000            463,100
    Operation and Maintenance,              (172,800)          (172,800)
     Army.........................
    Operation and Maintenance,               (37,000)           (37,000)
     Navy.........................
    Operation and Maintenance,               (38,000)           (38,000)
     Marine Corps.................
    Operation and Maintenance, Air          (136,200)          (136,200)
     Force........................
    Operation and Maintenance,               (23,900)           (22,000)
     Defense-Wide.................
    Operation and Maintenance,               (13,500)           (13,500)
     Army Reserve.................
    Operation and Maintenance,                (5,500)            (5,500)
     Navy Reserve.................
    Operation and Maintenance,                (1,900)            (1,900)
     Marine Corps Reserve.........
    Operation and Maintenance, Air            (6,000)            (6,000)
     Force Reserve................
    Operation and Maintenance,               (13,900)           (13,900)
     Army National Guard..........
    Operation and Maintenance, Air           (16,300)           (16,300)
     National Guard...............
California Electrical Demand                  24,500             41,500
 Reduction........................
    Operation and Maintenance,                  (300)            (7,100)
     Army.........................
    Operation and Maintenance,               (14,000)           (21,200)
     Navy.........................
    Operation and Maintenance,                (5,400)            (5,400)
     Marine Corps.................
    Operation and Maintenance, Air            (4,800)            (7,800)
     Force........................
Real Property Maintenance.........           186,000            144,300
    Operation and Maintenance,              (107,000)           (91,000)
     Army.........................
    Operation and Maintenance,               (44,000)           (31,500)
     Navy.........................
    Operation and Maintenance, Air           (16,000)            (6,800)
     Force........................
    Operation and Maintenance,               (19,000)           (15,000)
     Army National Guard..........
Aircraft Depot Maintenance........           276,000            276,000
    Operation and Maintenance,               (77,000)           (77,000)
     Navy.........................
    Operation and Maintenance, Air          (175,000)          (175,000)
     Force........................
    Operation and Maintenance, Air           (14,000)           (14,000)
     Force Reserve................
    Operation and Maintenance, Air           (10,000)           (10,000)
     National Guard...............
Ship Depot Maintenance............           200,000            200,000
    Operation and Maintenance,              (200,000)          (200,000)
     Navy.........................
Classified Programs...............            65,200             96,400
Recruiting and Advertising........                 0             25,000
    Operation and Maintenance,                    (0)           (25,000)
     Army.........................
U.S.S. COLE (funded in General                44,000             44,000
 Provisions)......................
Natural Disaster Damages (funded                   0             39,900
 in General Provisions)...........
------------------------------------------------------------------------

                   California Energy Demand Reduction

    The Committee recommends $45,700,000 for implementation of 
the Department of Defense's plan to reduce electricity demand 
in California and the Western United States, an increase of 
$17,000,000 above the request. These initiatives are intended 
to reduce electricity demand by ten percent this year and a 
total of fifteen percent by summer 2002. The Committee believes 
strongly that the Department must place greater emphasis on 
utilizing available service resources and technologies that can 
ultimately eliminate service dependence on the public power 
grids in this region. The Committee encourages the Department 
of Defense to allocate a significant portion of this funding 
increase to focus on this area.
    The additional funds, to remain available through fiscal 
year 2002, are allocated as follows:




Operation and Maintenance, Army.......................        $6,800,000
Operation and Maintenance, Navy.......................         7,200,000
Operation and Maintenance, Air Force..................         3,000,000


    The Committee directs that in distributing funds for the 
Energy Demand Reduction program, the Department should 
prioritize projects based upon available data to include 
increases in installation utility costs, the rate of savings in 
energy demand the project will produce, and the availability of 
service resources to complete the project. The Committee 
further directs the Secretary of Defense to submit a report to 
the congressional defense committees within 45 days of 
enactment of this Act that describes the complete criteria to 
be used and the proposed projects for distribution of these 
funds.

                       Recruiting and Advertising

    The Committee recommends a total of $25,000,000 to fund the 
Army's advertising campaign sufficiently through the end of the 
fiscal year. The Committee is aware of the Army's advertising 
efforts to focus on certain audiences, including Hispanics, and 
directs that no less than $5,000,000 of the funds provided be 
used to further increase existing production efforts directed 
toward Hispanic recruits.

                        Natural Disaster Damages

    The supplemental request includes $12,500,000 to repair 
damages caused by natural disasters. Responding to Committee 
requests for information, the military services provided 
details on the full extent of natural disaster damages, 
including severe wind damage in the northwestern United States 
in December 2000 and January 2001, the February 2001 earthquake 
in the northwestern United States, and numerous other 
occurrences of severe damage throughout the United States. In 
order to meet these needs, the Committee has provided 
$27,400,000 in additional funding, for a total of $39,900,000. 
The Committee has realigned those funds in the request and 
these additional amounts, and consolidated funding for these 
activities in a general provision in the Committee bill.

                           Other Adjustments

    Base Operations.--The Committee recommends a total of 
$407,000,000 for Base Operations. Within the amount recommended 
the Committee recommends $300,000,000 for Army; $83,000,000 for 
Navy; $7,000,000 for Army Reserve; $7,000,000 for Navy Reserve; 
and $10,000,000 for Army National Guard. Funding for MH-47E 
unit beddown is deferred based on consideration of other high 
priority requirements. The Department is encouraged to seek 
restoration of Host Nation Support.
    Real Property Maintenance.--The Committee recommends a 
total of $144,300,000 for Real Property Maintenance. Within the 
amount recommended, the Committee recommends $91,000,000 for 
Army; $31,500,000 for Navy; $6,800,000 for Air Force; and 
$15,000,000 for Army National Guard. Funding for F-22 beddown 
is deferred.
    Second Destination Transportation.--After review of the 
many high priority requirements presented by the Department, 
the Committee recommends a total of $50,000,000 for Second 
Destination Transportation, a reduction of $12,000,000 to the 
supplemental request.

              use of biofuels by the department of defense

    The Committee commends the Department of Defense for its 
efforts to maximize the use of ethanol, biodiesel and other 
agricultural-based fuels and lubricants, and urges the 
Department to continue the effort.

                              PROCUREMENT

    The supplemental request included $550,700,000 for 
functions funded in title III, Procurement, of the Department 
of Defense Appropriations Act. The Committee recommends 
$488,700,000. The following table summarizes the requested 
amounts and the Committee recommendations.

                        [In thousands of dollars]
------------------------------------------------------------------------
                                                           Committee
              Program                    Request         recommendation
------------------------------------------------------------------------
Training Munitions................           $73,000            $73,000
    Procurement of Ammunition, Air           (73,000)           (73,000)
     Force........................
C-17 Overhead Costs...............            49,000             49,000
    Aircraft Procurement, Air                (49,000)           (49,000)
     Force........................
Ship Cost Growth..................           222,000            222,000
    Shipbuilding and Conversion,            (222,000)          (222,000)
     Navy.........................
California Electrical Demand                   4,200              4,200
 Reduction........................
    Other Procurement, Army.......            (3,000)            (3,000)
    Other Procurement, Air Force..            (1,200)            (1,200)
Classified Programs...............           202,500            125,000
Global Positioning System NUDET...                 0             15,500
    Missile Procurement, Air Force                (0)           (15,500)
------------------------------------------------------------------------

                           Training Munitions

    The supplemental request includes $73,000,000 for various 
training munitions. The Committee recommendation includes this 
amount. The Air Force has informed the Committee that there is 
a near term shortfall of $452,000,000 in training munitions and 
a $2,000,000,000 shortfall over the Future Years Defense Plan. 
The Committee is dismayed to learn that these shortfalls are a 
result of a decade of neglect in Air Force budgets. The 
Committee further notes that the munitions procured with the 
supplemental funds will not be available for two years. This is 
clearly a requirement that must be addressed in an ongoing and 
deliberate manner as part of the regular annual appropriation 
process rather than supplemental appropriations. Accordingly, 
the Committee directs the Air Force to budget adequately for 
training munitions in future budget submissions.

                   Global Positioning System (Space)

    The supplemental request includes $15,500,000 in a 
classified line for acquisition of a nuclear detonation 
detection (NUDET) sensor for installation on the GPS satellite. 
The Air Force has informed the Committee that installation of 
this sensor on the GPS satellite is an unclassified fact. The 
Committee believes that funding this sensor in a classified 
line separately from the host GPS satellite unnecessarily 
complicates budget formulation, justification, and execution. 
Accordingly, the Committee recommendation includes a transfer 
of funding for this effort to the GPS satellite procurement 
line-item. The Committee directs that future budget requests 
for GPS NUDET be included as part of the GPS satellite 
procurement line-item. The Committee believes that this 
direction is not only preferable from a budgetary standpoint, 
but also fully consistent with DoD's intent to expand the Air 
Force's role and responsibilities in space.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

    The supplemental request included $440,500,000 for 
functions funded in title IV, Research, Development, Test and 
Evaluation, of the Department of Defense Appropriations Act. 
The Committee recommends $525,600,000. The following table 
summarizes the requested amounts and the Committee 
recommendations.

                        [In thousands of dollars]
------------------------------------------------------------------------
                                                           Committee
              Program                    Request         recommendation
------------------------------------------------------------------------
ISR Enhancements..................                 0             $5,000
    Research, Development, Test                   (0)            (5,000)
     and Evaluation, Army.........
Airborne Laser....................          $153,000            153,000
    Research, Development, Test             (153,000)          (153,000)
     and Evaluation, Air Force....
Launch Vehicle Demonstration......            48,000             48,000
    Research, Development, Test              (48,000)           (48,000)
     and Evaluation, Air Force....
Global Hawk.......................            25,000             17,000
    Research, Development, Test              (25,000)           (17,000)
     and Evaluation, Air Force....
Miniature Munitions...............            20,000             13,000
    Research, Development, Test              (20,000)           (13,000)
     and Evaluation, Air Force....
ISR Battle Management.............                 0              5,000
    Research, Development, Test                   (0)            (5,000)
     and Evaluation, Air Force....
Joint Experimentation.............            15,000             15,000
    Research, Development, Test              (15,000)                (0)
     and Evaluation, Defense-Wide.
    Research, Development, Test                   (0)           (15,000)
     and Evaluation, Navy.........
V-22 Aircraft.....................            80,000            120,000
    Research, Development, Test              (80,000)          (120,000)
     and Evaluation, Navy.........
Naval Fires Network...............                 0              5,000
    Research, Development, Test                   (0)            (5,000)
     and Evaluation, Navy.........
Classified Programs...............            99,500            144,600
------------------------------------------------------------------------

                                  v-22

    The supplemental request proposes a series of funding 
adjustments to the V-22 program, intended to begin 
implementation of recommendations made by the Panel to Review 
the V-22 Program (the so-called ``Blue Ribbon Panel'') to hold 
V-22 production rates to minimum levels while the program is 
restructured and restored to operation. To support initial 
redesign and testing efforts, the supplemental request proposes 
to increase the fiscal year 2001 budget request for V-22 
research and development by $80,000,000. The request also 
proposes rescissions of fiscal year 2001 V-22 production 
funding totaling $475,000,000 ($235,000,000 from ``Aircraft 
Procurement, Navy'', and $240,000,000 from ``Aircraft 
Procurement, Air Force''), in keeping with the Department's 
revised procurement profile.
    The Committee agrees with the thrust of the proposed 
changes contained in the supplemental budget request. However, 
in order to enable the Marine Corps to accelerate activities 
associated with risk reduction, part redesign, and continued 
operational testing necessary for the V-22 to return to flight 
status, the Committee recommends $120,000,000 for V-22 research 
and development, an increase of $40,000,000 over the 
supplemental request. The Committee has also carefully 
scrutinized the funding requirements associated with the V-22 
production program, and has determined that the supplemental 
request uses overly conservative pricing assumptions by the 
Defense Department on the remaining V-22 aircraft to be 
procured with fiscal year 2001 funds. Accordingly, the 
Committee believes the current planned fiscal year 2001 
procurement program can be executed at a lower cost, yielding 
funding which is available to help finance a more accelerated 
and robust V-22 testing and development effort, as well as 
other urgent needs in this legislation. Therefore, while 
approving the rescissions of prior year funds proposed in the 
request, the Committee recommends additional rescissions of 
$95,000,000 to the ``Aircraft Procurement, Navy'' appropriation 
account and $20,000,000 to the ``Aircraft Procurement, Air 
Force'' account.

                             airborne laser

    The supplemental request includes $153,000,000 for the 
Airborne Laser to address program cost growth and to reduce 
schedule risk for a lethal demonstration against a theater 
missile planned in 2003. The Committee recommendation includes 
this amount.

                          small diameter bomb

    The supplemental request includes $20,000,000 for a new 
program to develop a 250 pound Small Diameter Bomb (SDB). The 
Committee notes that $12,000,000 was appropriated to initiate 
this effort in fiscal year 2001. The Committee also notes that 
contract award will likely not occur until late fiscal year 
2001 or early fiscal year 2002. Given the availability of 
funds, and the delay in contract award, the Committee 
recommendation includes $13,000,000 subject to the direction 
below. Any additional fiscal year 2002 requirements should be 
addressed as part of the DoD's fiscal year 2002 request.
    Over the past several years, the Committee has supported an 
advanced technology demonstration of a low cost seeker 
technology called Direct Attack Munitions Affordable Seeker 
(DAMASK). DAMASK, developed at Naval Air Warfare Center China 
Lake, uses a low cost commercial imaging infrared sensor 
produced for the automobile industry. DAMASK provides a 
passive, GPS independent, through the weather, lock-on after 
launch, precision strike capability. In actual flight tests, 
the seeker has demonstrated accuracy within one meter in a GPS 
denied environment. DAMASK is estimated to cost $20,000 per 
seeker, less than half of the amount allocated in the Air 
Force's SDB seeker estimates.
    The Committee strongly encourages the Air Force to adopt 
the DAMASK technology for use in the SDB program. At a minimum, 
the Committee directs that evaluation of DAMASK technology be 
included in the SDB Request for Proposal (RFP) and that DAMASK 
be the standard of comparison in terms of cost and performance 
for all potential SDB seeker candidates.
    The Committee directs that prior to contract award for SDB, 
the Secretary of the Air Force submit a report to the 
congressional defense committees that includes: 1) a 
determination of whether the DAMASK technology (using an 
articulated design if required) can be adapted to accommodate 
the size requirements of the SDB; 2) an evaluation of DAMASK as 
a viable solution to the anti-jam requirements for the SDB; 3) 
an evaluation of DAMASK for use as an automatic target 
recognition seeker for mobile targets (assuming a logical 
technology growth path); 4) a cost and performance comparison 
between DAMASK and competing seeker proposals; and 5) a 
comparison of the competing seeker proposals in terms of 
technology readiness.

                         Joint Experimentation

    The supplemental request included $15,000,000 for 
``Research, Development, Test and Evaluation, Defense-Wide'', 
which the Department of Defense then intended to transfer to 
Joint Experimentation efforts funded in the ``Research, 
Development, Test and Evaluation, Navy'' appropriation. The 
Committee recommends appropriating the $15,000,000 directly to 
``Research, Development, Test and Evaluation, Navy'', to avoid 
the delay.

       Intelligence, Surveillance, Reconnaissance (ISR) Programs

    The supplemental request included $25,000,000 for 
Intelligence, Surveillance, Reconnaissance (ISR) programs, 
specifically an effort to accelerate the development of the 
Global Hawk High Altitude Endurance Unmanned Aerial Vehicle. 
The Committee recommends $32,000,000 for overall ISR efforts, 
an increase of $7,000,000, as outlined below.
    Global Hawk.--The Department requested $25,000,000 to 
accelerate the development of the Global Hawk High Altitude 
Endurance Unmanned Aerial Vehicle. The Committee recommends 
$17,000,000 for initiation of the plan presented by the Air 
Force to accelerate development of the Global Hawk.
    The Committee is concerned that the Air Force plan reflects 
a highly ambitious schedule, relying heavily on the rapid 
development and delivery of a myriad of sensor systems. The 
Committee believes the Air Force should use up to $5,000,000 of 
the funds provided to conduct a competitive fly-off 
demonstration to evaluate existing sensor systems, particularly 
electro-optical and infrared sensors and synthetic aperture 
radars, that demonstrate potential for achieving the 
requirement without the need for a significant investment in 
development cost and schedule. This effort could significantly 
reduce the risk inherent in the current schedule.
    ISR Networking Enhancements.--The Army, Navy, and Air Force 
are initiating programs and conducting joint and service-
specific exercises that highlight networking and command and 
control of ISR assets, time critical strike, and other network 
centric operations. These efforts, although developed 
separately, are by necessity joint due to their reliance on a 
common set of goals, assets, databases, and communication 
links.
    It is clear that central to the ability of each of the 
Services to identify, track, attack, and assess damage, is the 
development of methods to link available sensors into a network 
of shared data to support decision makers at all levels. The 
Committee notes that funding for many of the fiscal year 2001 
networking efforts have been cobbled together from a variety of 
projects that support related programs, but specific funds for 
certain requirements have not been fully funded in a budget 
request. Therefore, the Committee has provided a total of 
$15,000,000 for the services to enhance and accelerate high 
priority networking projects. The Committee directs the 
$15,000,000 be used as follows:
     For the Army, $5,000,000 for Intelligence, 
Surveillance, Reconnaissance Enhancements.--$3,000,000 for UAV 
Radio Network Upgrades to allow radios to be networked beyond 
the line of sight and $2,000,000 for the continued development 
of the Joint Common Data Base.
     For the Navy, $5,000,000 for Naval Fires Network 
(NFN) testing, evaluation, and deployment, an analysis of the 
requirement to upgrade the tactical dissemination module, and 
training and long lead requirements for a potential NFN 
prototype deployment with a CVBG.
     For the Air Force, $5,000,000 for Intelligence, 
Surveillance, Reconnaissance Battle Management to initiate a 
new start program to develop a capability to dynamically 
command, control and visualize ISR assets and information in 
the Air Operations Center (AOC).
    The Committee agrees with the approach that each service is 
taking. Nevertheless, it is essential that each service Chief 
monitor their programs to ensure that service solutions are 
joint in application. Architectures must be built in such a way 
that interoperability and exchange of information is encouraged 
and not hindered.

           Office of the Assistant Secretary of Defense (C3I)

    Recent actions within the Office of the Assistant Secretary 
of Defense for Command, Control, Communications and 
Intelligence (ASD/C3I) indicate that this office has failed in 
its responsibility to adhere to congressional directives with 
respect to execution of funding for particular programs, 
projects, and activities. The Committee believes that these 
instances show a lack of judgment, questionable management 
practices, and what appears to be at best an indifference for 
Congress' role in the establishment of defense spending 
priorities. Such practices not only undermine the 
appropriations process, but also weaken the confidence given to 
ASD/C3I with respect to conducting its overall responsibilities 
within the Department of Defense.
    The Committee recognizes that ASD/C3I is an important 
organization with far reaching oversight and management of 
important Department of Defense programs. The Committee 
believes that such authority must be combined with a more 
responsive management structure that is capable not only of 
effectively managing its programs, but also ensuring that the 
intent of Congress is implemented in a timely manner. The 
Committee expects that the Secretary of Defense will ensure 
that any future Assistant Secretary of Defense for ASD/C3I will 
take steps to correct these types of actions and will address 
the issues identified by the Committee.

                     REVOLVING AND MANAGEMENT FUNDS


                     Defense Working Capital Funds

    The supplemental request included $178,400,000 for 
functions funded in title V, Revolving and Management Funds, of 
the Department of Defense Appropriations Act. The Committee 
recommends $178,400,000. The following table summarizes the 
requested amounts and the Committee recommendations.

                        [In thousands of dollars]
------------------------------------------------------------------------
                                                           Committee
              Program                    Request         recommendation
------------------------------------------------------------------------
Utilities.........................          $178,400           $178,400
    Defense Working Capital Funds.          (178,400)          (178,400)
------------------------------------------------------------------------

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

    The supplemental request included $1,453,400,000 for 
functions funded in title VI, Other Department of Defense 
Programs, of the Department of Defense Appropriations Act. The 
Committee recommends $1,655,300,000. The following table 
summarizes the requested amounts and the Committee 
recommendations.

                        [In thousands of dollars]
------------------------------------------------------------------------
                                                           Committee
              Program                    Request         recommendation
------------------------------------------------------------------------
Defense Health Program............        $1,453,400         $1,653,400
    Operation and Maintenance,            (1,427,000)        (1,427,000)
     Defense Health Program.......
    Operation and Maintenance,               (26,400)           (26,400)
     Defense Health Program (for
     utilities)...................
    Operation and Maintenance,                    (0)          (200,000)
     Defense Health Program (MTF
     Optimization)................
Drug Interdiction and Counter-Drug                 0              1,900
 Activities, Defense (for
 utilities).......................
------------------------------------------------------------------------

                   defense health program cost growth

    The Committee notes that in 12 of the past 16 years, the 
Congress has been compelled to act either by providing new 
appropriations or prior approval reprogrammings to ensure 
sufficient funding for the Defense Health Program. Including 
the amount recommended in this bill, the Congress has provided 
a total of over $6,500,000,000 above amounts requested by the 
Department of Defense for this program since fiscal year 1986.
    One reason for these shortfalls is the need to fully fund 
the cost of contractually provided health care. To fund such 
shortfalls, the Committee recommends $786,300,000, as requested 
by the administration, for costs associated with the TRICARE 
global settlement, for price adjustments in execution of fiscal 
year 2001, for requirements that could not be met by the 
Department of Defense medical treatment facilities, and for 
certain pharmacy costs. With respect to global settlement, the 
Committee harbors concerns that this amount does not reflect 
all valid contractor claims since July 2000. The Committee is 
aware that numerous valid claims have yet to be adjudicated and 
that new claims have been filed by TRICARE contractors since 
the beginning of calendar year 2001. The Committee therefore 
directs the Secretary of Defense to submit a report to the 
congressional defense committees, prior to conference on the 
fiscal year 2001 Supplemental Appropriations bill, that 
provides estimates of the outstanding liability for global 
settlement and other change order requirements not previously 
identified or estimated that exceed the funding provided in 
this bill.
    In addition, the Committee is aware that the Department of 
Defense suffers from chronic funding shortfalls due to the 
inaccuracy of current DoD budgeting methods. Current practices 
have clearly failed to keep pace with increases in medical care 
costs brought about by advances in the technology of providing 
medical care, and by substantial increases in pharmacy costs. 
An example of the discrepancy between budgeting methods and 
reality is reflected in pharmacy costs, for which the 
Department regularly budgets for cost growth of 4-5 percent per 
year while actual cost growth since 1996 has averaged nearly 12 
percent annually. Therefore, the Committee directs the 
Secretary of Defense to submit a report to the congressional 
defense committees, concurrent with submission of the fiscal 
year 2002 budget request, which details measures included in 
the fiscal year 2002 budget request to improve budgeting 
methods for medical care in the fiscal year 2002 request and 
for subsequent budget requests.

 Military Treatment Facility Optimization and Advance Medical Practices

    The Committee has provided an additional $200,000,000 above 
the budget request as an initial increment to begin the process 
of reversing the erosion in the ability of the direct military 
health care system to provide the highest standards of care to 
service personnel, their families, and to Medicare-eligible 
military retirees. The inability of the Department to 
accurately forecast its TRICARE contractor costs, combined with 
high cost growth in the commercial medical sector, 
congressional action to expand health benefits to military 
retirees, and a poorly structured base contract for TRICARE 
service providers has resulted in an explosion in TRICARE costs 
that has exceeded forecast levels by tens of billions of 
dollars over the past several years. Besides putting strains on 
the DoD budget as a whole, the direct care system of the 
military medical departments has been especially hard hit as 
their budgets have been consistently raided to pay for TRICARE 
cost overruns. For instance, this year the fourth quarter 
operating budgets for the Army, Navy and Air Force direct care 
systems have all been used to pay legitimate but unbudgeted 
TRICARE contractor claims. Without the replenishment of over 
$1.4 billion in this bill, all three of the services' direct 
care systems would be forced to shut down in July or August.
    This severe and persistent funding instability for the 
direct care system has been highly disruptive to orderly 
administration and has had an insidious ``penny-wise, pound-
foolish'' effect on the entire system over time. It has 
prevented military managers from making sound investments to 
increase the longer-term efficiency of their system and to 
maintain the highest quality standards of care. The Surgeons 
General have repeatedly testified that this continued neglect 
of the direct care system soon will lead to a decrease in 
quality of patient care, a significant disruption in the normal 
delivery of health care services, declining morale among the 
medical workforce, and more difficulty in recruiting top 
medical talent.
    The Committee also notes that sound investments in the 
direct care system can save significant amounts of money. For 
instance, the Air Force Surgeon General testified that the lack 
of funding for MTF operating room supplies has caused his staff 
to transfer in-house appendectomy patients to TRICARE 
contractors at a total cost of $6,000 to $7,000 per procedure 
instead of $300 at an MTF. The Committee is aware that the 
Surgeons General have documented hundreds of individual MTF 
investments that will not only improve the quality of care, but 
allow them to provide care cheaper than if it were outsourced 
to TRICARE contractors. These ``optimization'' projects make 
good business sense.
    In addition, the Committee is concerned that the TRICARE 
financial crisis has sapped the ability of the military direct 
care system to keep abreast of and implement the latest 
advances in medical practices. Every year, it is estimated that 
the military health system needs around $100 million a year to 
implement newly developed practices/procedures such as laser 
refractive eye surgery, liquid based cytology, positron 
emission tomography, or non-invasive colonoscopy. It is these 
same funds that are held in reserve by the Department until the 
very end of the fiscal year to cover TRICARE shortfalls, and 
are often reduced or eliminated. The Committee believes this is 
a counter-productive budgetary practice.
    The Committee has therefore provided $200,000,000 to begin 
the process of reversing the disinvestments in the military's 
direct care system. Of this amount, $150,000,000 is provided to 
expand the services' MTF optimization efforts and $50,000,000 
is provided to finance necessary advances in medical practices 
that have been deferred to date. Optimization projects may 
include increased staffing, minor facility repairs and 
maintenance, expansion of services, equipment modernization, 
pharmacy upgrades, or other activities that will improve health 
care service and/or reduce overall cost to the government. The 
Committee bill carries language requiring that business case 
models be prepared for these projects to show that they will be 
``self-financing'' within at least three years of project 
initiation, in the sense that they save more overall cost to 
the government (to include TRICARE contractor cost) than is 
invested under this account. The bill language also gives the 
ability to the Surgeons General to undertake other activities 
that may not technically meet the cost savings criteria if they 
deem it necessary to meet a critical health care deficiency 
that threatens health care outcomes.
    The Committee directs each Surgeon General to report to the 
congressional defense committees by September 15, 2001 on what 
projects or activities are to be funded with these funds 
(including the cost and location of each), the expected overall 
return on investment of each project, and a description of the 
need/benefits for each project. The Committee also expects and 
has included language requiring that each project or activity 
funded under this section be continued and adequately financed 
in out year budget plans (the so-called POM process). The bill 
requires the Secretary of Defense to so certify before funds 
can be released.

         Drug Interdiction and Counter-Drug Activities, Defense

    The Congress identified $5,000,000 in the fiscal year 2000 
Department of Defense Appropriations Act to provide logistical 
and demilitarization support for the transfer of three excess 
A-10 aircraft to the Department of State in support of its 
Latin American drug eradication efforts. This action has yet to 
be finalized. In view of the increased threat environment, the 
Committee recommends that the Secretary of Defense renew 
consultations with the Department of State on this matter and 
proceed with the transfer of these aircraft.

                            RELATED AGENCIES


                   National Drug Intelligence Center

    The Congress funded the National Drug Intelligence Center 
(NDIC) at a fiscal year 2001 baseline level of $34,100,000 to 
implement changes in operations and responsibilities specified 
by the General Counterdrug Intelligence Plan (GCIP). The GCIP 
established the NDIC as the principal center for domestic 
strategic counterdrug analysis in support of policymakers and 
resource planners, and mandated the establishment or expansion 
of key technological and analytical assets. The Committee 
expects the intelligence community to ensure that this new 
baseline is fully reflected in the fiscal year 2002 and out 
year budgets.

                          Classified Programs

    The Committee's recommendations regarding classified 
programs are summarized in a classified annex accompanying this 
report.

                    GENERAL PROVISIONS--THIS CHAPTER

    The Committee bill amends a general provision requested in 
the supplemental request concerning the availability of funds 
provided in this chapter.
    The Committee bill includes a general provision requested 
in the supplemental request concerning funds for intelligence 
related programs.
    The Committee bill amends a general provision requested in 
the supplemental request which provides $44,000,000 of 
additional funds for the repair of the U.S.S. COLE.
    The Committee bill includes a general provision which 
rescinds $834,000,000 from funds provided in previously enacted 
Defense Appropriations Acts. The accounts and specific programs 
recommended for rescission are as follows:

                                                             Rescissions
2000 Appropriations:
    Procurement, Marine Corps: Shortstop................      $3,000,000
2001 Appropriations:
    Overseas Contingency Operations Transfer Fund.......      81,000,000
    Aircraft Procurement, Navy: MV-22...................     330,000,000
    Procurement, Marine Corps: Shortstop................       5,000,000
    Aircraft Procurement, Air Force: CV-22..............     260,000,000
    Other Procurement, Air Force: Selected Activities...      65,000,000
    Procurement, Defense-Wide: NSA--Classified Equipment      85,000,000
    Intelligence Community Management Account: ADCI 
      (Collection Management)...........................       5,000,000

    The Committee bill includes a general provision which 
provides funding to repair facilities damaged by natural 
disasters.
    The Committee bill includes a general provision extending 
the authorities provided in section 816 of the National Defense 
Authorization Act of 1995, as amended, through January 31, 
2002.

                               CHAPTER 2


                          DEPARTMENT OF ENERGY


                National Nuclear Security Administration


                           weapons activities

    The Committee recommendation includes $140,000,000 for 
Weapons Activities as proposed by the Administration. However, 
the Committee recommendation modifies the distribution of the 
program funding.
    Directed stockpile work.--An additional $54,000,000 has 
been provided for directed stockpile work to be allocated as 
follows: $18,900,000 for stockpile maintenance; $4,000,000 for 
stockpile evaluation; and $31,100,000 for stockpile research 
and development, including $24,000,000 for W-88 pit 
certification activities.
    Campaigns.--An additional $9,000,000 has been provided for 
campaigns to be allocated as follows: $1,800,000 for secondary 
readiness; $1,600,000 for non-nuclear readiness; $1,600,000 for 
high explosives manufacturing and weapons assembly/disassembly 
readiness; and $4,000,000 for pit manufacturing readiness.
    Readiness in technical base and facilities.--An additional 
$47,000,000 has been provided for readiness in technical base 
and facilities to be allocated as follows: $23,000,000 for 
operations of facilities; $9,500,000 for program readiness; 
$4,500,000 for material recycle and recovery; $8,800,000 for 
containers; and $1,200,000 for storage.
    The recommendation also adjusts funding for construction 
projects provided in the fiscal year 2001 appropriations bill 
to more accurately reflect the use of the funds. Funding of 
$9,500,000 provided in Project 01-D-103, Project Engineering 
and Design (PE&D), has been transferred to Project 01-D-108, 
Microsystems and Engineering Science Applications (MESA) 
Complex, at Sandia National Laboratories. Funding provided in 
fiscal year 2001 for this project was for infrastructure 
upgrades which should have been provided in the MESA 
construction line item, not PE&D.
    Funding of $3,689,000 is provided for Project 01-D-107, 
Atlas Relocation and Operations, at the Nevada Test Site. This 
reflects the transfer of $3,689,000 from Project 01-D-103, 
PE&D, to relocate the Atlas pulsed power facility to the Nevada 
Test Site by the end of fiscal year 2003.
    Facilities and infrastructure.--The Committee has provided 
$30,000,000 to establish a new program, Facilities and 
Infrastructure, to address the serious shortfall in maintenance 
and repairs throughout the nuclear weapons complex. This 
funding should be used to reduce the backlog of maintenance and 
repairs and dispose of excess facilities.

                    Other Defense Related Activities


         Defense Environmental Restoration and Waste Management

    The Committee recommendation includes $100,000,000 for 
Defense Environmental Restoration and Waste Management as 
proposed by the Administration. Additional funding of 
$31,700,000 is provided for the Savannah River Site for high-
level waste activities and work in the F&H areas. Additional 
funding of $18,300,000 is provided for the Hanford site in 
Richland, Washington, for spent nuclear fuel activities, work 
on the Plutonium Finishing Plant, and F-reactor interim storage 
activities. For the Office of River Protection in Richland, an 
additional $10,000,000 is provided for tank farm operations and 
$25,000,000 to support the Hanford vitrification plant. 
Additional funding of $7,000,000 has been provided to purchase 
TRUPACTS shipping containers in support of operations at the 
Waste Isolation Pilot Plant in New Mexico; $5,000,000 to 
restore funding for high level waste disposal activities at 
Idaho; and $3,000,000 for groundwater contamination activities 
at the Pantex plant in Texas.

                  Defense Facilities Closure Projects

    The Committee recommendation includes $21,000,000 for 
Defense Facilities Closure Projects as proposed by the 
Administration. Additional funding of $20,000,000 has been 
provided for the Fernald, Ohio, project, and $1,000,000 for the 
Miamisburg, Ohio, project.

             Defense Environmental Management Privatization

    The Committee recommendation includes $27,472,000 for 
Defense Environmental Management Privatization, a reduction of 
$2,128,000 from the Administration's request of $29,600,000. 
These additional funds will be used to meet funding commitments 
for the Advanced Mixed Waste Treatment Facility in support of 
legally enforceable deadlines for shipping waste out of Idaho.

                               CHAPTER 3


                         MILITARY CONSTRUCTION


                      Military Construction, Army

    The Committee recommends appropriating $67,400,000 above 
the President's request. Of this amount, $55,100,000 is to 
upgrade utility systems in Korea that are in serious states of 
disrepair, and $6,900,000 is to renovate and upgrade 
substandard and environmentally unsafe vehicle maintenance 
facilities in Germany. The following projects are included:

------------------------------------------------------------------------
  Location/account/installation        Project title           Cost
------------------------------------------------------------------------
Korea:
    Army:
        Camp Humphreys...........  Electrical Upgrade..      $10,200,000
        Camp Humphreys...........  Sewer Upgrade.......       12,000,000
        Camp Hovey...............  Sewer Upgrade.......       13,400,000
        Camp Casey...............  Sewer Upgrade Phase         8,000,000
                                    2.
        Camp Casey...............  Electrical Upgrade..        4,000,000
        Camp Stanley.............  Electrical Upgrade..        7,500,000
        Yongsan Army Garrison....  Underground Fuel            1,600,000
                                    Tanks.
                                                        ----------------
          Subtotal, Korea........  ....................       56,700,000
                                                        ================
Japan:
    Army:
        Camp Schwab..............  Special Forces               3,800,00
                                    Training Range.
                                                        ----------------
          Subtotal, Japan........  ....................        3,800,000
                                                        ================
                                                        ================
Germany:
    Army:
        Darmstadt................  Vehicle Maintenance         2,500,000
                                    Shop.
        Kaiserslautern...........  Vehicle Maintenance         2,900,000
                                    Shop.
        Bamberg..................  Vehicle Maintenance         1,500,000
                                    Facility.
                                                        ----------------
          Subtotal, Germany......  ....................        6,900,000
                                                        ================
          Total..................  ....................       67,400,000
------------------------------------------------------------------------

    In 1999 and 2000, the Command of United States Forces in 
Korea (USFK) suffered 295 electrical power and 467 water supply 
outages from a decaying infrastructure no longer capable of 
standing up to daily use and severe weather, much less hostile 
action. Magnifying the problem is the increasing need for 
sophisticated information technology systems that are 
incompatible with existing infrastructure. To begin managing 
these problems, the Committee has included funds to replace the 
infrastructure with upgraded systems. Not only will this 
improve the lives and working conditions of troops stationed in 
Korea, it will strengthen the position of the Command to 
negotiate a land partnership agreement with the government of 
the Republic of Korea.
    As a result, of the deteriorating infrastructive, troops do 
not have internet access readily available. Nevertheless, a 
recent survey cited phone and internet access as the top 
concern of service people stationed in Korea. The Committee 
encourages the Commander of United States Forces in Korea 
(USFK) to explore this matter and to make recommendations to 
the Committee for improving its phone and internet services.
    The Committee is also concerned that being stationed in 
Korea is considered to be an assignment where soldiers suffer 
the greatest loss of pay. For example, a Korea assignment is a 
1-year unaccompanied hardship tour similar to a 6-month 
unaccompanied hardship tour in the Balkans. Yet soldiers 
serving in the Balkans are provided tax relief (no federal 
taxes) and a Basic Allowance Subsistence (separate rations) of 
approximately $237 per month. Soldiers serving in Korea, 
however, do not receive similar benefits. Given the equally 
hazardous conditions in Korea and the Balkans, this disparity 
seems unfair.
    Additionally, $3,800,000 is provided for the Special Forces 
Special Operations Training Facility at Camp Schwab in Okinawa, 
Japan. A new training facility is needed to replace the 
existing facility that has been condemned. $1,600,000 is 
provided for the replacement of underground fuel storage tanks 
in Korea.
    Finally, vehicle maintenance facilities in Germany are in 
need of substantial renovation in order to ensure safe working 
conditions for troops and to meet stringent environmental 
regulations. Consequently, the Committee recommends $6,900,000 
to renovate and upgrade three such facilities.

                      Military Construction, Navy

    The Committee recommends providing $10,500,000, above the 
President's request, of which $9,400,000 is for the 
construction of an Emergent Repair Facility in Guam for 
submarines and ships in transit in the South Pacific. 
Additionally, $1,100,000 is provided for a 3rd Marine 
Expeditionary Force Training Facility at Camp Schwab in 
Okinawa, Japan. The existing training facility is incapable of 
containing ammunition rounds and does not meet environment 
standards.

                    Military Construction, Air Force

    The Committee recommends $8,000,000 for Military 
Construction, Air Force, instead of $18,000,000 as proposed by 
the President. The appropriation is for heat, ventilation, and 
fire protection systems in hardened aircraft shelters at the 
Kunsan Air Base in Kunsan, Korea.

                          Family Housing, Army

    The Committee recommends $29,480,000 for the Family 
Housing, Army, instead of $27,200,000 as requested by the 
President. Of the amount provided, $2,280,000 is to convert and 
renovate 102 substandard low-rise apartments in Hannam Village, 
Seoul, Korea. The remaining amounts are necessary to pay for 
the increased cost of utilities due to rate increases for 
natural gas and electricity.

                 Family Housing, Navy and Marine Corps

    The Committee recommends providing $20,300,000 for the 
Family Housing, Navy and Marine Corps, as requested by the 
President. This amount is necessary to pay for the increased 
cost of utilities due to rate increases for natural gas and 
electricity.

                       Family Housing, Air Force

    The Committee recommends providing $18,000,000 for the 
Family Housing, Air Force, as requested by the President. This 
amount is necessary to pay for the increased cost of utilities 
due to rate increases for natural gas and electricity.

                 Base Realignment and Closure, Part IV

    The Committee recommends $9,000,000 for the Base 
Realignment and Closure, Part IV, as requested by the 
President. This appropriation enables the Air Force to fulfill 
contractual obligations incurred for the environmental clean-up 
of McClellan Air Force Base.

                    GENERAL PROVISIONS--THIS CHAPTER

    The bill contains three provisions:
    Section 1301 modifies the existing $77,500,000 cap to allow 
for unanticipated increases in construction costs and related 
contingency allowances at the Arvin Cadet Physical Development 
Center at the United States Military Academy in New York. These 
increases, however, cannot exceed the authorized amount of the 
project of $85,000,000. The Secretary of the Army is directed 
to submit a report to the congressional defense committees on 
the current cost estimates for the project 15 days prior to 
expending funds on the final phase of construction.
    Section 1302 clarifies that amounts provided to the 
Department of Defense under each of the headings in this 
Chapter are available for the same time period as the amounts 
appropriated under each such heading in Public Law 106-246.
    Section 1303 rescinds $64,000,000 from funds provided in 
previous Military Construction Appropriations Acts.

                                TITLE II


                   OTHER SUPPLEMENTAL APPROPRIATIONS


                               CHAPTER 1


                    GENERAL PROVISION--THIS CHAPTER

    Section 2101. The Committee recommends a technical 
correction related to the Rural Community Advancement Program. 
The Committee does not recommend additional appropriations for 
the Animal and Plant Health Inspection Service and for the 
Klamath Basin, as requested. It is the view of the Committee 
that these funding requirements can be met by administrative 
action through existing powers and authorities of the Commodity 
Credit Corporation. The Committee urges and directs the 
Department to take such action promptly in order to meet these 
needs more expeditiously than would be possible by waiting for 
enacted supplemental appropriations.
    With regard to the budget request for $20,000,000 for 
financial assistance to eligible producers in the Klamath 
Basin, the Committee directs the Department of Agriculture to 
submit an apportionment request forthwith to the Office of 
Management and Budget. This request shall cover the release of 
not less than $20,000,000 from available funds of the Commodity 
Credit Corporation for the purpose of providing assistance to 
producers, as determined by the Secretary of Agriculture. A 
copy of this appointment request shall be submitted to the 
Committees on Appropriations of the House and the Senate within 
three days of its submission to the Office of Management and 
Budget. Further, the Secretary of Agriculture is directed to 
keep the Committees fully advised to the status and disposition 
of this apportionment request.

                               CHAPTER 2


                          DISTRICT OF COLUMBIA

    The Committee recommends an additional $95,677,000 for 
District of Columbia activities during fiscal year 2001 
consisting of $250,000 by transfer from Federal funds 
previously appropriated, $93,276,000 from local funds and 
$2,151,000 from enterprise funds. The District government's 
request totals $94,677,000 to be financed completely from local 
funds and was transmitted to the President by the Mayor on May 
22, 2001. This supplemental request is necessitated by budget 
pressures of $190,000,000 which District officials are 
addressing and at this time have been able to resolve over 51 
percent through internal adjustments and the use of reserves. 
The balance is due primarily to increased enrollment in the 
Medicaid program, the need to invest in support services for 
children, youth, and their families, anticipated costs of 
collective bargaining agreements, and unforeseen increases in 
natural gas prices.
    The supplemental recommended by the Committee is funded 
entirely with local funds and a transfer of previously 
appropriated Federal funds. There is no new Federal money 
included. District officials and the control board certified 
$109,500,000 in additional local revenues above the original 
projections of $3,263,000,000 that were developed in December 
1999 to support the fiscal year 2001 budget. The major areas of 
revenue increases are taxes and licenses and permits.

                   Governmental Direction and Support


                         (including rescission)

    The Committee recommends a net increase of $5,140,000 
within this appropriation title consisting of $5,400,000 to 
cover the 84 percent increase in the price of natural gas 
experienced by the District government and a rescission of 
$250,000 that was appropriated as a Federal payment in Public 
Law 106-522 on the condition that the Comptroller General 
assist the District in developing a solicitation for the study 
and design of a system to simplify the administration of 
personnel policies, including pay policies, for employees of 
the District government. District officials have stated that 
they are further along in their procurement effort and would be 
delayed if they were to comply with the conditions placed on 
the use of the $250,000. As a result the District's Chief 
Financial Officer requested that the funds be rescinded and the 
District's Personnel Officer has assured the Committee in a 
letter dated May 2, 2001 that ``they expect to have the 
deliverables required by the Congress by the end of * * *'' 
fiscal year 2001.

                  Economic Development and Regulation

    The Committee recommends an additional $1,625,000 for two 
programs under this appropriation title. A total of $1,000,000 
is recommended for the Office of Business Services and Economic 
Development for the implementation of the District government's 
New E-Conomy Transformation Act of 2000 to attract and foster 
the growth of businesses involved in the development, 
production, distribution, and sale of Internet-based and other 
communications technologies. The amount of $625,000 is 
recommended to fund the city's abatement and condemnation 
efforts of nuisance properties as required under section 5-513 
of the D.C. Code. The Committee has not approved language 
concerning the transfer of savings resulting from personnel 
vacancies or language that requires the deposit of funds into 
revolving accounts or the request that funds for the Department 
of Consumer and Regulatory Affairs not be available until 
certain actions are completed by June 1, 2001. That requirement 
would have been unenforceable since the date of June 1, 2001 
has since passed.

                       Public Safety and Justice


                         (including rescission)

    The Committee recommends a net increase of $8,770,000 for 
several activities within this appropriation account. A total 
of $2,800,000 is recommended for the Metropolitan Police 
Department consisting $800,000 to implement the photo radar 
contract program to photograph the license plates of speeders 
and $2,000,000 to pay an arbitration award made to the members 
of the Fraternal Order of Police involving a grievance 
concerning the curtailing of overtime pay to certain employees. 
The Committee recommends $5,940,000 for the Fire and Emergency 
Medical Services Department consisting of $5,540,000 for back 
payments and accrued interest resulting from delays in 
implementing programs allowing fire fighters to make pre-tax 
payments for pension and health and life insurance benefits, 
and $400,000 to cover the remaining costs of placing a fifth 
fire fighter on fire trucks. The Committee also recommends 
$161,000 for the Child Fatality Review Committee to examine the 
past events and circumstances leading to or causing the death 
of a child or youth, a committed ward of child welfare, or 
person with mental retardation and developmental disabilities. 
The Committee will operate as a distinct entity within the 
Chief Medical Examiner's office. The Committee also recommends 
the rescission of $131,000 for taxicab inspectors. This program 
is funded under the Public Works appropriation at the same 
level.

                        Public Education System


                     (Including transfer of funds)

    The Committee recommends an additional $2,000,000 for the 
Public Education System consisting of $1,750,000 in local funds 
and $250,000 by transfer of previously appropriated Federal 
funds. A total of $1,000,000 is recommended for independent 
audits of public school enrollment counts and residency 
verification in the D.C. Public Schools and the D.C. Public 
Charter Schools as required by District statute. The Committee 
questions why these funds were not included in the regular 
annual budget, especially since the audit is required by law. 
The Committee also recommends an additional $1,000,000 for the 
operation of the Excel Institute Adult Education Program 
consisting of a transfer of $250,000 in Federal funds 
appropriated in Public Law 106-522 that are matched with 
$750,000 in local funds. A total of $2,000,000 in local funds 
was supposedly included by District officials in the District 
of Columbia Appropriations Act for fiscal year 2001 but upon 
closer examination there was only $1,000,000 that was included 
for construction and the acquisition of construction services 
from the General Services Administration on a reimbursable 
basis. Rather than rescind the $250,000 in Federal funds for 
the pay simplification system as requested by District 
officials, the Committee has transferred those funds to this 
appropriation title for the Excel Institute and recommends that 
those funds be matched with $750,000 in local funds. The Excel 
Institute is an Academic/Auto Technical Training School located 
in Northwest Washington. The Institute offers young men and 
women in the District the opportunity to train for a career, 
earn a high school equivalency diploma, and obtain an 
unsubsidized job in the automotive industry. The Committee has 
also approved language that requires any proceeds and interest 
accruing from the sale of the University of the District of 
Columbia's radio station WDCU held by the control board in an 
escrow account be used for the University's Endowment Fund and 
invested in equity based securities if approved by the 
District's Chief Financial Officer.

                         Human Support Services

    The Committee recommends an additional $28,000,000 for 
activities within the Human Support Services appropriation. The 
Committee recommends $15,000,000 to cover the local share of 
Medicaid costs due to an increase in the number of clients 
receiving inpatient and specialty hospital services and an 
increase in enrollments in the managed care program. A total of 
$4,000,000 is recommended to cover modifications in the funding 
formula that has resulted in higher Disproportionate Share to 
Hospitals (DSH) payments for uncompensated care provided to 
District residents by local hospitals. The Committee recommends 
$3,000,000 for the District's Disability Compensation Fund to 
cover medical and compensation costs for an increased caseload, 
$1,000,000 for the Office of Latino Affairs to provide Latino 
Community Education grants to 6,000 families in the Latino 
community, and $5,000,000 for the Children Investment Trust to 
support a non-profit entity referred to as the Children and 
Youth Investment Trust Corporation. This corporation will 
coordinate the services provided to youth at the community 
level and disburse funds to community-based organizations that 
serve children, youth and their families with services that 
include early childhood development opportunities, safe and 
enriching centers for learning in and out of school, and other 
training, recreational, and educational services. The board of 
the corporation consists of members appointed by the Mayor and 
Council as well as four government officials who serve as 
advisory members of the board.

                              Public Works

    The Committee recommends $131,000 from local funds for the 
Taxicab Commission for taxicab inspectors. This function was 
previously performed by the Metropolitan Police Department 
which had reduced the number of hack inspectors from six to 
three. The Taxicab Commission is expected to place a higher 
priority on taxicab enforcement and reducing the number of 
complaints.

                         Workforce Investments

    The Committee recommends an appropriation of $40,500,000 
from local funds to fund anticipated compensation increases 
from current labor negotiations. The District's major 
bargaining units are renegotiating contracts that expired on 
September 30, 2000.

                            Wilson Building

    The Committee recommends an additional $7,100,000 from 
local funds to make up a shortfall in budgeting by District 
officials for funds needed for the relocation of various 
District agencies to the John A. Wilson Building.

                             Capital Outlay

    The Committee recommends approval of the reallocation of 
$4,850,000 from five existing projects that have had no 
implementation activity since fiscal year 1999 to six projects 
involving buildings of historical significance in the District 
and the funding of a program manager. The six government 
buildings selected will be renovated. The dormant projects are: 
Electrical Modernization-Old Juvenile Court, $2,650,000; 
Asbestos Abatement-Oak Hill Juvenile Court, $525,000; Condition 
Assessments, $159,080; Electrical Modernization-Various DC 
Facilities, $1,000,000; Building Renovations--Old Juvenile 
Court, $525,000. These dormant projects total $4,859,080. The 
properties to be renovated are: Recorder of Deeds at 5th and D 
Street, N.W., $2,000,000; Old Navy Hospital at 921 Pennsylvania 
Avenue, S.E., $400,000; Tivoli Theater at 14th Street and Park 
Road, N.W., $1,000,000; 10th Precinct Building at 750 Park 
Road, N.W., $450,000; Lamond Recreation Center, $400,000; 
Riggs-Lasalle Recreation Center at 501 Riggs Road, N.E., 
$400,000. The reallocation also includes $200,000 for the 
program manager.

                       Enterprise and Other Funds


         Water and Sewer Authority and the Washington Aqueduct

    The Committee recommends an additional $2,151,000 from 
local funds for the Water and Sewer Authority to cover the 
costs of the Public Space Occupancy Permit Rental Fee (``right-
of-way'' fee) imposed by the District on WASA and increased 
costs for compliance activities related to the District's 
stormwater permit.

                               CHAPTER 3


                      DEPARTMENT OF DEFENSE--CIVIL


                         DEPARTMENT OF THE ARMY


                       Corps of Engineers--Civil


 Flood Control, Mississippi River and Tributaries, Arkansas, Illinois, 
       Kentucky, Louisiana, Mississippi, Missouri, and Tennessee

    The Committee has provided $18,000,000 for the Mississippi 
River and Tributaries project for the Corps of Engineers to 
address emergency needs resulting from severe localized spring 
flooding and other natural disasters. The funds would be used 
to address the damages caused by flooding by placing more 
revetment squares; repairing scours that threaten a pumping 
station, a public road and tributary levees; and replacing 
relief wells that threaten the stability of a pumping station. 
Funds would also be used to dredge silted channels, remove 
drift and repair levee slides. The entire amount is designated 
by the Congress as an emergency requirement pursuant to section 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended.

                   Operation and Maintenance, General

    The Committee has provided $115,500,000 for the Corps of 
Engineers to address emergency needs resulting from recent 
Midwestern and other floods, ice storms, an earthquake, and 
other natural disasters. The funds would be used to dredge 
commercial navigation channels, remove debris, repair damaged 
revetments and dam embankments, and repair damaged buildings 
and equipment at Corps of Engineers projects. The Committee has 
also included language which directs the Corps of Engineers to 
undertake the project authorized by section 518 of the Water 
Resources Development Act of 1999. The entire amount is 
designated by the Congress as an emergency requirement pursuant 
to section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended.
    Corps of Engineers projects in the Tulsa, Little Rock, and 
Vicksburg Districts were particularly hard hit by winter ice 
storms and the funds provided will enable the Corps to make 
necessary repairs to damaged facilities.
    Areas of Louisiana, Alabama and Texas received over 30 
inches of rain over a eight day period as a result of Tropical 
Storm Allison. The funds provided will enable the Corps to 
address flooding problems, restore appropriate depths of 
navigable waterways and other damages in the New Orleans, 
Galveston and Mobile districts.

                 Flood Control and Coastal Emergencies

    The Committee has provided $50,000,000, the same as the 
amount requested by the Administration, for Flood Control and 
Coastal Emergencies for the repair of eligible Federal and non-
Federal facilities damaged by natural disasters. The entire 
amount is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.

                          DEPARTMENT OF ENERGY


                            Energy Programs


                  Non-Defense Environmental Management

    The Committee recommendation includes $11,950,000 for Non-
Defense Environmental Management, an increase of $550,000 over 
the request of $11,400,000. Additional funding of $10,000,000 
is provided to continue cleanup at the Brookhaven National 
Laboratory in New York, and $1,950,000 is provided to study 
remediation options at the former Atlas Corporation's uranium 
mill tailings site near Moab, Utah.

             Uranium Facilities Maintenance and Remediation

    The Committee recommendation includes $18,000,000 for 
Uranium Facilities Maintenance and Remediation, to be derived 
from the Uranium Enrichment Decontamination and Decommissioning 
Fund, as proposed by the Administration. Additional funding of 
$9,000,000 has been provided to support cleanup activities at 
Paducah, Kentucky, and $9,000,000 has been provided to continue 
decontamination and decommissioning activities at the former 
gaseous diffusion plant in Oak Ridge, Tennessee.

                    Power Marketing Administrations


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

    The Committee recommendation for the Western Area Power 
Administration (Western) is $1,578,000 to complete the planning 
and environmental studies to support the proposed 84-mile, 500-
kilovolt transmission line between Los Banos and Gates (also 
known as ``Path 15'') in California. Path 15 is presently a 
bottleneck in the transmission of electricity between northern 
and southern California. The additional funds will allow 
Western to complete the planning for the proposed transmission 
project, including coordination with potential nonfederal 
sponsors for the project. Funds are also provided for Western 
to update the environmental impact documentation originally 
completed in 1986. These funds are non-reimbursable so that 
existing Western customers do not have to repay these costs to 
the Federal government.

                    GENERAL PROVISION--THIS CHAPTER

    The Committee has included bill language to direct the 
Corps of Engineers to use $500,000 of the funds provided in 
Public Law 106-377 to complete work on the Chickamauga Lock, 
Tennessee feasibility study.

                               CHAPTER 4


                       DEPARTMENT OF THE INTERIOR


                        Bureau of Indian Affairs


                      Operation of Indian Programs

    The Committee recommends $50,000,000 for operation of 
Indian programs, as requested by the Administration, to allow 
for the repayment by the Bureau of Indian Affairs to the land 
acquisition accounts of the Bureau of Land Management, the 
United States Fish and Wildlife Service, and the National Park 
Service. The entire amount is designated by the Congress as an 
emergency requirement pursuant to section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended.
    In May 2001, the Secretary of the Interior used her 
transfer authority in Section 102 of the FY 2001 Interior and 
Related Agencies Appropriations Act, Public Law 106-291, to 
provide a total of $41,000,000 to prevent the shutdown of the 
San Carlos Irrigation Project (SCIP) electric power operations 
in Arizona. The transfers are expected to cover the cost of 
power purchases for May through the end of August. The 
additional funds above the amount required for reimbursement 
are to ensure that there are sufficient funds to cover the cost 
of summer power requirements. The need for this funding is due 
to: (1) SCIP's regional linkage to the California power market 
and low western reservoirs, which contribute to high 
electricity prices; (2) the lack of alternative power providers 
in SCIP's service area, which leaves certain residents, such as 
diabetics on dialysis, vulnerable to illness or death should 
power be cut off; (3) and the inability of SCIP to obtain 
sufficient funding to purchase power by other means. The 
potential loss of power would have a disastrous effect on the 
economy and human population of south-central Arizona. The 
Department of the Interior is drafting legislation to authorize 
the divestiture of SCIP assets and the Administration hopes to 
proceed expeditiously.

                United States Fish and Wildlife Service


                              Construction

    The Committee recommends $17,700,000 for construction, to 
remain available until expended, to repair damages to U.S. Fish 
and Wildlife Service facilities caused by floods, ice storms, 
and earthquakes in the States of Washington, Illinois, Iowa, 
Minnesota, Missouri, Wisconsin, New Mexico, Oklahoma, and 
Texas. The entire amount is designated by the Congress as an 
emergency requirement pursuant to section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended.

                         National Park Service


                       United States Park Police

    The Committee recommends $1,700,000 for United States park 
police for unbudgeted increases in pension costs for retired 
United States park police officers. These funds will allow for 
reinstatement of the recruit training class that has been 
delayed to pay the increased retirement costs.

                             RELATED AGENCY


                       DEPARTMENT OF AGRICULTURE


                             Forest Service


                       State and Private Forestry

    The Committee recommends $22,000,000 for State and private 
forestry for emergency activities associated with ice storm 
damage in the States of Arkansas and Oklahoma, and for 
emergency pest suppression in several areas of the country. The 
recommendation includes $10,000,000 for ice storm damage and 
$12,000,000 for pest suppression and prevention activities on 
Federal, State, Tribal, and private lands. The funds to address 
ice storm damage are for technical forestry and community 
assistance, development of recovery plans, forest regeneration 
on non-Federal lands, and community fire assistance including 
community fire presuppression, suppression and prevention 
activities. The funds for pest suppression and prevention 
activities should be focused on emergency needs such as 
suppression of southern pine beetles in the South, addressing 
the increasing sudden oak death needs in California and Oregon, 
suppression of bark beetles in the West, restoration of forests 
destroyed by spruce and mountain pine beetles, and emergency 
development, production, and release of beetles for the purpose 
of Hemlock woolly adelgid biocontrol. The entire amount is 
designated by the Congress as an emergency requirement pursuant 
to section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended.

                         National Forest System

    The Committee recommends $12,000,000 for the national 
forest system for emergency activities associated with ice 
storm damage in the States of Arkansas and Oklahoma, and for 
emergency response to the emerging problem of illegal marijuana 
cultivation and trafficking in California and Kentucky. Within 
the amount recommended, $10,000,000 is to address ice storm 
damage for activities associated with forest restoration 
including the preparation and sale of forest products, re-
establishment of forested areas, restoration of wildlife 
habitat, and recreation site cleanup; and $2,000,000 is to 
address the emerging illegal cultivation and trafficking of 
marijuana in California and Kentucky. Such funds shall be 
available for increased agency law enforcement activity and 
increased cooperative support to State and local agencies. The 
entire amount is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.

                        Wildland Fire Management

    The Committee recommends $100,000,000 for wildland fire 
management to address additional requirements for the 2001 fire 
season. Current indications are that the agency's fire fighting 
capability and available resources are likely to be 
insufficient to meet demand. The Committee reminds the 
Administration, that a significant debt of over $300,000,000 
exists, due to borrowing from the Knutson-Vandenburg funds for 
past fire suppression activities. It is important that 
repayment of such borrowing be a high priority, should year-end 
Wildland Fire Management balances afford such an opportunity. 
The entire amount is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.

                  Capital Improvement and Maintenance

    The Committee recommends $4,000,000 for capital improvement 
and maintenance to repair damages caused by ice storms in 
Arkansas and Oklahoma. Such funds are available for activities 
including maintenance and reconstruction of roads accessing 
national forest and research sites and facilities, maintenance 
and restoration of trails, and maintenance and minor 
reconstruction of administrative and recreation facilities. The 
entire amount is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.

                    GENERAL PROVISIONS--THIS CHAPTER

    The Committee recommends bill language to permit completion 
of a wilderness study at Apostle Islands National Lakeshore, WI 
by the National Park Service. An amount of $200,000 was 
provided in fiscal year 2001 to complete this study. Because 
the study will not be completed until fiscal year 2003, the 
Committee recommends extending the availability of these funds.
    The Committee recommends bill language extending the 
availability of funds provided in fiscal year 2001 for 
maintenance, protection and preservation of land in the 
Minuteman Missile National Historic Site, South Dakota. The 
projects for which $5,000,000 was made available to the 
National Park Service, through the Air Force operations and 
maintenance account, cannot be completed this fiscal year.
    The Committee recommends bill language to correct a Public 
Law reference in section 338 of the Interior and Related 
Agencies Appropriations Act for fiscal year 2001.
    The Committee recommends bill language modifying a 
provision in Public Law 106-558 in order to authorize the 
payment of full overtime rates for fire fighters in fiscal year 
2001.
    The Committee recommends bill language to permit the Forest 
Service to receive reimbursement for expenditures for projects 
that otherwise qualify for the use of Federal-aid highways 
funds. Emergency relief for Federally-owned roads is routinely 
made available to the Forest Service in the form of Federal-aid 
highways funds (Department of the Treasury account 12-69X8083). 
These monies provide critical funding for the repair of forest 
roads made necessary by storms, floods, and other natural 
occurrences. However, timely repair work is often needed prior 
to Federal-aid highways funds being made available to the 
Forest Service by the Federal Highway Administration. This time 
lag in the provision of Federal-aid highways funds necessitates 
the interim use of agency funds, which were budgeted 
specifically for other projects, to complete such repairs. The 
ability to reimburse accounts that were used to fund projects, 
which would otherwise qualify for the use of Federal-Aid 
Highways funds, is necessary to assure that both needed 
emergency repair work and regularly planned, budgeted, and 
approved projects are completed.

                               CHAPTER 5


                          DEPARTMENT OF LABOR


                 Employment and Training Administration


                    Training and Employment Services


                              (Rescission)

    The bill includes a rescission of $359,000,000 from funds 
provided in P.L. 106-554 to support the activities of the 
Workforce Investment Act (WIA). The rescission is from amounts 
provided on an advance basis for fiscal year 2002 to support 
WIA activities in program year 2001. No rescission was 
requested by the Administration.
    The Department of Labor estimates that States will carry-in 
balances of $1,778,000,000 on July 1, 2001, the beginning of 
program year 2001. The Committee understands from the 
Department that historically States have carried-in 
approximately $1,000,000,000 annually among the three WIA block 
grants.
    The Departments of Labor, Health and Human Services, and 
Education, and Related Agencies Appropriations Act, 2001 
provided advance appropriations for the adult and dislocated 
worker employment and training activities totaling 
$1,772,000,000. At the time the Committee provided these 
advance appropriations, it did not anticipate such high levels 
of unexpended balances in WIA block grant programs.
    In view of the large carry-in balances, the Committee 
recommendation rescinds $359,000,000 from these advanced 
amounts, of which $100,000,000 is from adult employment and 
training activities and $259,000,000 is from dislocated worker 
employment and training activities. Even with the rescission, 
States will have available an estimated $5,107,000,000 to 
support WIA activities in program year 2001, $455,000,000 over 
amounts available in program year 2000.
    The President's fiscal year 2002 budget recommends reducing 
WIA funding by $359,000,000 for program year 2002 in order to 
reduce the high level of carry-in balances in each of the three 
WIA block grants. The Committee believes that rescinding a 
portion of the advance appropriations for these activities now 
will provide more time for the States, the Administration, and 
the Congress to examine program expenditure patterns and assess 
future WIA training and employment service needs.

                         Program Administration

    It has come to the Committee's attention that a number of 
communities are experiencing delays in the Department of 
Labor's processing of petitions for Trade Adjustment 
Assistance. For localities whose workers have been adversely 
affected by imports and trade agreements these job training and 
reemployment benefits are crucial. The Committee urges the 
Department of Labor to expedite the investigation and 
certification processes for these benefits.

                DEPARTMENT OF HEALTH AND HUMAN SERVICES


              Health Resources and Services Administration


                     Health Resources and Services

    The funding available for construction and renovation of 
Scripps Memorial East County Hospital in El Cajon, California 
shall be divided equally between Sharps Grossmont Hospital, 
located in San Diego County and El Centro Regional Medical 
Center, located in Imperial County.

                Administration for Children and Families


                   Low Income Home Energy Assistance

    The bill includes $300,000,000 to serve as a reserve to 
provide home energy assistance to low-income households, 
including the needs of low-income households arising from 
extreme summer heat or other emergencies, as defined in section 
2603 of the Omnibus Budget Reconciliation Act of 1981. This is 
$150,000,000 above the Administration's supplemental request. 
The Departments of Labor, Health and Human Services, and 
Education, and Related Agencies Appropriations Act, 2001 (P.L. 
106-554) provided $300,000,000 in contingent emergency funds 
for LIHEAP. These funds were released in their entirety on 
December 30, 2000, to address high heating fuel prices.

                        DEPARTMENT OF EDUCATION


                            Education Reform

    The bill includes a provision to make a technical 
correction relating to a project specified in the statement of 
the managers on the conference report accompanying the 
Departments of Labor, Health and Human Services, and Education, 
and Related Agencies Appropriations Act, 2001.

                    Education for the Disadvantaged

    The bill includes a provision to make a technical 
correction relating to the amount of funding available for 
Basic Grants in school year 2001-2002.
    The bill also includes an additional $161,000,000 for the 
Title I Grants to States program. It is the intent of the 
Committee that, when taken together with the technical 
correction to the basic grants amount, these additional 
resources will result in a final fiscal year 2001 appropriation 
of $7,397,971,000 for basic grants and $1,364,750,000 for 
concentration grants. The Committee further intends that these 
additional resources will be used to provide each state and 
local educational agency the greater of either the amount it 
would receive at levels specified in the conference report to 
accompany H.R. 4577 under the 100-percent hold harmless or what 
it would receive using the statutory formulas. The additional 
funds are necessary to fully implement this agreement using 
updated poverty and expenditure data that became available in 
January 2001.

                               Impact Aid

    The bill includes a provision requiring Impact Aid 
construction funds to be distributed in accordance with the 
formula provisions outlined in section 8007 of the Impact Aid 
program as that section existed in fiscal year 2000.

                           Special Education

    The bill includes a provision to make a technical 
correction relating to a project specified in the statement of 
the managers on the conference report accompanying the 
Departments of Labor, Health and Human Services, and Education, 
and Related Agencies Appropriations Act, 2001.

            Education Research, Statistics, and Improvement

    The bill includes a provision to make technical corrections 
relating to the amount of funding available for projects 
specified in the statement of the managers on the conference 
report accompanying the Departments of Labor, Health and Human 
Services, and Education, and Related Agencies Appropriations 
Act, 2001.

                               CHAPTER 6


                           LEGISLATIVE BRANCH


                        Congressional Operations


                        House of Representatives


      Payments to Widows and Heirs of Deceased Members of Congress

    The bill provides the traditional death gratuity for the 
widow of Norman Sisisky, late a Representative from the 
Commonwealth of Virginia, and the heir of John Joseph Moakley, 
late a Representative from the Commonwealth of Massachusetts.

                         Salaries and Expenses


Members' Representational Allowances, Standing Committees, Special and 
      Select, Committee on Appropriations, Allowances and Expenses

    The bill includes an additional $44,214,000 for Members' 
Representational Allowances (MRA's), standing committees, 
special and select, the Committee on Appropriations and 
allowances and expenses. Funds for MRA's and committees have 
been requested by the House in the Administration's 
supplemental submission to support the increased authorizations 
recently approved by the House of Representatives. Funds are 
also provided for increased benefit costs associated with the 
related staff increases.
    Since the Committee on House Administration Committee 
funding resolution spans the biennial period of the 107th 
Congress, the bill provides $9,776,000 within the above amount 
to remain available until December 31, 2002, for committee 
salaries and expenses.

                    Salaries, Officers and Employees

    The bill provides an additional amount for salaries and 
expenses of the Office of the Clerk and the Office of the Chief 
Administrative Officer totaling $17,448,000. The Clerk is 
provided $3,150,000 including $2,500,000 for the continuation 
of the project to replace the current Legislative Information 
Management Systems (LIMS) and $650,000 to fund anticipated 
expenses of the Office of the House Employment Counsel.
    The Chief Administrative Officer is provided $14,298,000. 
This funding will allow upgrades to hardware and infrastructure 
for improved and higher speed network connectivity between 
Member Washington and district offices and within the House 
campus.

                          OFFICE OF COMPLIANCE


                         Salaries and Expenses

    The bill provides $35,000 to the Office of Compliance for 
unexpected requests for counseling and mediation services.

                       GOVERNMENT PRINTING OFFICE


                   Congressional Printing and Binding

    The bill provides $11,900,000 to fund a shortfall based on 
the increased volume of printing of publications and associated 
information products and services ordered by Congress during 
fiscal years 2000 and 2001.

               Government Printing Office Revolving Fund

    The Committee recognizes the need to replace the air 
conditioning system at the Government Printing Office. The 
chillers, which date back to the 1970's, are in critical need 
of replacement. They have outlived their useful life and are 
obsolete, energy inefficient, and pose a threat to the 
environment through the use of chlorofluorocarbons. In order to 
avoid the potential failure of the entire system and provide 
for energy efficient lighting, the bill provides the necessary 
funding of $6,000,000.

                          LIBRARY OF CONGRESS


                         Salaries and Expenses

    The Library of Congress and the United States Military 
Academy initiated a collaborative telecommunications project 
during fiscal year 2001 to ensure that the undergraduate cadet 
population has effective access to digitized primary source 
material which is available through the Library's Internet 
site. To further the project, the Committee has provided an 
additional $600,000 to upgrade the current network 
infrastructure within the cadet barracks.
    The Committee acknowledges that the Library of Congress is 
endeavoring to acquire the 1507 world map by Waldseemueller and 
is seeking private funding to support the acquisition. The 
committee fully supports the initiative to acquire this major 
treasure for its library. The 1507 World Map by Martin 
Waldseemueller, the first work of any kind to designate as 
America the newly discovered Western Hemisphere, is often 
called ``America's birth certificate.'' As such this nearly 
500-year old map is a significant historical document that 
should be held by the people of the United States and exhibited 
in Congress' library. The Committee urges the librarian to seek 
an extension from the German Ministry of Culture to its June 
30, 2001, deadline for the expiration of the export license to 
allow the Library of Congress every opportunity to acquire for 
America this most important historical document.

                               CHAPTER 7


                      DEPARTMENT OF TRANSPORTATION


                    FEDERAL AVIATION ADMINISTRATION


                       Grants-in-Aid for Airports


                    (Airport and Airway Trust Fund)

                 (Rescission of Contract Authorization)

    The bill rescinds $30,000,000 in contract authority for the 
``Grants-in-aid for airports'' program. This funding is above 
annual obligation limitations on this program, and is therefore 
not available for use in the program. As such, the rescission 
will have no effect on current operations.

                              COAST GUARD


                           Operating Expenses

    The recommendation includes an additional $92,000,000, as 
requested, for Coast Guard operating expenses. Funding has been 
made available until September 30, 2002. These funds are needed 
to address: increased fuel costs ($37,000,000); additional pay 
and benefits mandated or authorized under the National Defense 
Authorization Act for Fiscal Year 2001 ($31,000,000); shortages 
in aviation spare parts ($20,000,000); and costs of deploying 
port security units to the Middle East ($4,000,000).

                               CHAPTER 8


                       DEPARTMENT OF THE TREASURY


                          Departmental Offices


                         salaries and expenses

    The Committee has not provided the President's request for 
an additional $60,601,000 to fund operational and perimeter 
security support for the 2002 Winter Olympics in Salt Lake 
City, Utah. The Committee supports this funding, which would 
cover both increased Treasury Department workload as well as 
travel, overtime and related costs of agencies providing 
security support. The Committee expects to include such funding 
in the fiscal year 2002 appropriation.

                      Financial Management Service


                         Salaries and Expenses

    The Committee recommends an appropriation of $49,576,000 
for the Financial Management Service to implement a tax rate 
reduction credit as specified in section 101 of the Economic 
Growth and Tax Relief Reconciliation Act of 2001. The funding 
supports the purchase of check stock and other related paper 
supplies, as well as postage and other costs associated with 
processing and mailing tax rate reduction credit checks to 
taxpayers. The Committee directs the Financial Management 
Service to provide a detailed report on the expenditures made 
pursuant to this appropriation 120 days after the enactment of 
this Act.

                        Internal Revenue Service


                 Processing, Assistance, and Management

    The Committee recommends an appropriation of $66,200,000 
for the Internal Revenue Service to implement a tax rate 
reduction credit as specified in section 101 of the Economic 
Growth and Tax Relief Reconciliation Act of 2001. The funding 
supports advance mailings to taxpayers of the tax rate 
reduction credit schedule as well as related customer service 
and account reconciliation activities. The Committee directs 
the Internal Revenue Service to provide a detailed report on 
the expenditures made pursuant to this appropriation 120 days 
after the enactment of this Act.

                               CHAPTER 9


                     DEPARTMENT OF VETERANS AFFAIRS


                    Veterans Benefits Administration


                       Compensation and Pensions

    The Committee recommends an additional $589,413,000 for 
compensation and pension payments to eligible veterans. 
Supplemental funds are needed in fiscal year 2001 in order to 
meet cost of living adjustments, and program enhancements and 
benefits contained in legislation enacted after passage of the 
fiscal year 2001 appropriations bill.

                         Readjustment Benefits

    The Committee recommends an additional $347,000,000 to meet 
Montgomery GI Bill benefit enhancements contained in 
legislation enacted after passage of the fiscal year 2001 
appropriations bill.

                     Veterans Health Administration


                    Medical and Prosthetic Research

    The Committee recognizes that the VA research program must 
undertake a certain level of travel to properly optimize the 
function and oversight of this worthwhile program and includes 
language increasing the current fiscal year 2001 travel 
limitation from $2,500,000 to $3,500,000.

                      Departmental Administration


                       General Operating Expenses

                     (including transfer of funds)

    The Committee recommends $19,000,000 be transferred from 
the Medical Care account to General Operating Expenses 
exclusively for the Veterans Benefits Administration (VBA). VBA 
is aggressively pursuing a proactive approach to solving the 
mounting claims problem by hiring and training additional 
claims adjudicators immediately. The additional $19,000,000 
from Medical Care, plus $7,000,000 of reprogrammed GOE funds, 
will allow VBA to hire and train approximately 400 new 
personnel.
    As a result of the hiring plan, VBA will need an increased 
travel limitation in FY 2001 over the originally requested 
level to support this training effort. The new fiscal year 2001 
GOE travel limitation is $17,500,000.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT


                       Public and Indian Housing


                        housing certificate fund

                              (Rescission)

    The Committee recommendation includes a rescission of 
$114,300,000 of unobligated appropriations to the Housing 
Certificate Fund and its predecessor programs.

                   Community Planning and Development


                       Community Development Fund

    The Committee has included language which clarifies 
Congressional intent with respect to appropriations made for 
construction at a New Jersey university medical center, to 
improve cyber-districts in Massachusetts, and for wastewater 
and combined sewer overflow infrastructure improvements in 
Massachusetts.

                            Housing Programs


                  Manufactured Housing Fees Trust Fund

    The recommendation includes language to provide authority 
for the expenditure of fees collected and deposited into the 
Manufactured Housing Fees Trust Fund for fiscal year 2001. The 
Manufactured Housing Improvement Act of 2000, enacted on 
December 27, 2000, created this new fund and made expenditures 
from the fund subject to annual appropriations. Technical 
drafting errors in the statute have resulted in HUD being 
unable to spend fees collected in fiscal year 2001, threatening 
a shutdown of the program. Therefore, language is included to 
rectify this situation.

                     Federal Housing Administration


             FHA--Mutual Mortgage Insurance Program Account

    The recommendation includes language giving the Department 
authority to use existing fiscal year 2001 appropriations to 
take corrective action in response to a probable fiscal year 
2000 violation of the Anti-Deficiency Act. In fiscal year 2000, 
FHA funded a $33,000,000 advertising campaign promoting HUD 
programs. A portion of this program's funding was derived from 
a non-appropriated account, the authorized use of which is 
limited to disposition of FHA properties. According to HUD 
officials, the use of this fund has resulted in a likely 
violation of the Anti-Deficiency Act that is estimated by HUD 
to total $6,900,000 plus interest. The Committee's 
recommendation includes language to allow HUD flexibility to 
pay the obligation and accrued interest from within existing 
fiscal year 2001 appropriations for FHA administrative expenses 
and for HUD's salaries and expenses.

             FHA--General and Special Risk Program Account

    The recommendation includes an additional $40,000,000 in 
credit subsidy appropriations for the General Insurance and 
Special Risk Insurance (GI/SRI) program account. The Committee 
notes that for the second consecutive year, FHA has sought a 
supplemental appropriation because of the inability of the 
programs to operate within the resources provided. This 
additional appropriation, when combined with a premium increase 
for apartment development programs as assumed in the 
Administration's supplemental funding request, will provide FHA 
sufficient resources to guarantee all multi-family loans 
meeting FHA underwriting criteria through the remainder of this 
fiscal year. Changes in the premium structure will ensure that 
most FHA apartment development programs operate in a self-
sustaining manner like most other FHA programs, including the 
single-family insurance program, thereby averting further 
shutdowns in the program. Therefore, language is also included 
to condition the release of this additional amount upon 
implementation of an interim final rule revising premium 
structure for programs provided for under this heading.
    The Committee is also concerned that insufficient FHA 
management and oversight has contributed to the inability of 
the programs to operate within the funding provided. Increased 
FHA management and oversight of these programs, coupled with 
reduced reliance on direct appropriations, will enable FHA 
programs to operate in an uninterrupted manner. The Committee 
expects FHA to take all actions necessary to strengthen its 
management and financial oversight of these programs, and to 
provide a report to the Committee no later than August 15, 
2001, identifying the corrective actions taken to address these 
issues.

                          INDEPENDENT AGENCIES


                      Department of Defense--Civil


                       Cemeterial Expenses, Army


                         Salaries and Expenses

    The Committee recommends an additional $243,059 for 
Arlington National Cemetery to pay a disputed water bill 
consistent with statutory requirements in the Consolidated 
Appropriations Act, 2001 (Public Law 106-554).

                    Environmental Protection Agency


                 Environmental Programs and Management

    The Committee has included language in the bill which 
clarifies Congressional intent with respect to an appropriation 
made in fiscal year 2001 for work on New York watersheds.

                   State and Tribal Assistance Grants

    The Committee has included language in the bill which 
clarifies Congressional intent with respect to appropriations 
made for four specific projects. The Committee has also 
included a technical amendment which states the correct 
appropriations level provided in Public Law 106-377 for state 
and tribal assistance grants.

                  Federal Emergency Management Agency


                            disaster relief

                              (rescission)

    The Committee has included a provision rescinding 
$389,200,000 from the disaster relief fund. These funds are not 
required by the Federal Emergency Management Agency at this 
time.

             National Aeronautics and Space Administration


                           Human Space Flight

    The Committee has included language in the bill which would 
remove a restriction placed on $40,000,000 of the funding 
provided in the fiscal year 2000 appropriation for Human Space 
Flight. The fiscal year 2000 language restricted the use of the 
funding for a shuttle research mission to be accomplished after 
STS-107 and December of 2001. With delays in the overhaul of 
the space shuttle Columbia, and other delays caused by changes 
to the shuttle manifest, NASA's STS-107 research mission has 
been rescheduled for May of 2002 and the follow-on mission is 
not currently manifested. NASA has already used $8,000,000 of 
the $40,000,000 set-aside to prepare for the follow-on mission. 
With this language change, NASA will be able to use $17,000,000 
to cover the costs associated with the delay of STS-107 mission 
and $15,000,000 will be used for research to be carried out on 
the International Space Station. The Committee remains 
concerned about the level of research conducted on the 
International Space Station and wishes to stress the importance 
of utilizing the laboratory facilities for scientific research.
    The Committee is concerned to learn that the follow-on 
research mission is not even scheduled until 2004. This mission 
was intended as a gap-filler to support the scientific 
community during construction of the International Space 
Station. Pushing this mission back another three years will 
only further exacerbate existing strains on the underfunded 
life and microgravity science community.
    The supplemental request had sought authority to offset 
further costs for preparing STS-107 from the $15,000,000 set 
aside for space station research. This request is denied. If 
further funding is required for STS-107 in fiscal year 2002, 
NASA is directed to submit a budget amendment to identify funds 
for this purpose. According to the Congressional Research 
Service, $462,000,000 has been transferred from space station 
research to construction from fiscal years 1996-98. These 
constant transfers have undermined the preparedness of the 
research community to utilize the station and created an 
atmosphere of significant uncertainty. The Committee is also 
aware that NASA has proposed a significant space station 
research realignment in fiscal year 2002. Further transfers 
would be extremely detrimental to research efforts. Therefore, 
the Committee language requires that $15,000,000 only be used 
for space station research. The Committee supports the 
completion of the STS-107 mission but believes that whenever 
possible future year liabilities should be addressed through 
regular order instead of through anticipated reprogrammed 
actions.

                    GENERAL PROVISION--THIS CHAPTER

    Sec. 2901. The bill includes a provision that clarifies 
congressional intent that funds appropriated for the Community 
development fund shall be available for two fiscal years.

                               TITLE III


                      GENERAL PROVISION--THIS ACT

    Section 3001. This provision provides that no part of any 
appropriation contained in this Act shall remain available for 
obligation beyond the current fiscal year unless expressly so 
provided in this Act.
    Section 3002. The bill includes a general provision that 
requires, within five days of enactment of this Act, the 
Secretary of State to report to the Committee on Appropriations 
on the projected uses of the unobligated balances of funds 
available under the heading ``Agency for International 
Development, International Disaster Assistance'', including 
plans for allocating additional resources to respond to the 
damage caused by the earthquakes that occurred in El Salvador 
in January and February, 2001.

               Changes in the Application of Existing Law

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill which directly or indirectly change the 
application of existing law.
    The bill includes several appropriations that are not 
authorized by law and as such may be construed as legislative 
in nature.
    The bill includes several emergency appropriation 
designations that may be construed as legislative in nature.
    Language has been included for Department of Defense--
Military, in ``Operation and Maintenance, Army'', which extends 
the availability of funds for California energy demand 
reduction.
    Language has been included for Department of Defense--
Military, in ``Operation and Maintenance, Navy'', which extends 
the availability of funds for California energy demand 
reduction.
    Language has been included for Department of Defense--
Military, in ``Operation and Maintenance, Air Force'', which 
extends the availability of funds for California energy demand 
reduction.
    Language has been included for Department of Defense--
Military, in ``Shipbuilding and Conversion, Navy'', which 
provides funds for transfer to other shipbuilding programs.
    Language has been included for Department of Defense--
Military, in ``Defense Health Program'', which provides funds 
to cover increases in TRICARE contract costs associated with 
the provision of health care services to eligible beneficiaries 
of all the uniformed services.
    Language has been included for Department of Defense--
Military, in ``Defense Health Program'', which provides funds 
to improve the quality of care provided at military treatment 
facilities.
    Language has been included for Department of Defense--
Military, which restricts the availability of funds provided in 
this Act to the same time period as the amounts appropriated in 
Public Law 106-259 unless otherwise specified.
    Language has been included for Department of Defense--
Military, concerning funds for intelligence related programs.
    Language has been included for Department of Defense--
Military, which provides funds for the repair of the U.S.S. 
COLE.
    Language has been included for Department of Defense--
Military, which rescinds funds from various activities funded 
in previously enacted Defense Appropriations Acts.
    Language has been included for Department of Defense--
Military, which provides funds for facilities repair and 
damages resulting from natural disasters.
    Language has been included for Department of Defense--
Military, which extends the authorities provided in section 816 
of the National Defense Authorization Act for 1995 (Public Law 
103-337), as amended, through January 31, 2002.
    The bill includes language under Title I, Chapter 3, which 
provides funds for Military Construction, Army, Military 
Construction, Navy, Military Construction, Air Force, Family 
Housing, Army, Family Housing, Navy and Marine Corps, Family 
Housing, Air Force, and the Department of Defense Base 
Realignment and Closure Account 1990.
    A general provision is included authorizing the Department 
of the Army to expend funds in addition to amounts specified in 
section 138 of Public Law 106-246 for the Cadet Physical 
Development Center only for the purposes of meeting 
unanticipated price increases.
    A general provision is included making funds provided in 
Chapter 3 available for the same time period as the amounts 
appropriated under each such heading in Public Law 106-246.
    The bill includes a general provision that directs the 
Corps of Engineers to use $500,000 of the funds provided in 
Public Law 106-377 to complete work on the Chickamauga Lock, 
Tennessee feasibility.
    A general provision is included rescinding funds from 
previous Military Construction Appropriations Acts.
    The bill includes language which makes technical 
corrections regarding the Rural Community Advancement Program.
    The bill includes a provision that clarifies the authorized 
uses of funds under a small business grant program.
    The bill includes rescissions under ``Governmental 
Direction and Support'' and under ``Public Safety and 
Justice''.
    The bill includes the transfer of funds under ``Public 
Education System''.
    The bill includes language under ``Public Education 
System'' which requires proceeds and interest accruing thereon 
from the sale of the University of the District of Columbia 
radio station WDCU that are in an escrow account of the control 
board to be used for the University's Endowment Fund and allows 
the funds to be invested in equity based securities if approved 
by the District's Chief Financial Officer.
    The bill includes language which directs the Corps of 
Engineers to undertake the project authorized by section 518 of 
Public Law 106-53.
    The bill includes language under Weapons Activities 
providing for the initiation of two construction projects in 
fiscal year 2001.
    The bill includes language under Western Area Power 
Administration providing that the funds to complete the 
planning and environmental studies to support the proposed 
transmission line shall be non-reimbursable.
    The bill includes a provision that extends the availability 
of funding for a wilderness study at Apostle Islands National 
Lakeshore and for maintenance, protection and preservation of 
land at the Minuteman Missile National Historic Site; 
correcting a citation in a provision from the fiscal year 2001 
Interior and Related Agencies Appropriations Act; changing the 
effective date of a provision dealing with overtime pay for 
fire fighters; and permitting the reimbursement of Federal-aid 
highways funds for Forest Service emergency road 
reconstruction.
    The bill includes a provision that provides additional Low 
Income Home Energy Assistance funding under emergency authority 
without the emergency designation requirement.
    The bill includes a provision that requires Impact Aid 
construction funds to be distributed in accordance with the 
formula provisions outlined in section 8007 of the Elementary 
and Secondary Education Act of 1965 as that section existed in 
fiscal year 2000.
    The bill includes language under the Department of Veterans 
Affairs, medical and prosthetic research and general operating 
expenses, which changes the limitation on travel expenditures.
    The bill includes language under the Department of Veterans 
Affairs, which transfers money from medical care to general 
operating expenses for the purpose of expediting claims 
processing.
    The bill includes language under the Department of Housing 
and Urban Development, manufactured housing fees trust fund, 
providing authority for expenditure of fees collected in the 
Fund in fiscal year 2001.
    The bill includes language under the Department of Housing 
and Urban Development, FHA--mutual mortgage insurance fund 
program account, permitting funds available in fiscal year 2001 
for FHA administrative expenses and HUD salaries and expenses 
to be used to liquidate deficiencies, which occurred in fiscal 
year 2000.
    The bill includes language under the Department of Housing 
and Urban Development, FHA--general and special risk insurance, 
limiting the availability of funds until implementation of a 
final interim rule revising the premium structure of program 
provided under this account.
    The bill includes language under the National Aeronautics 
and Space Administration, human space flight, which deletes a 
restrictive proviso included in the fiscal year 2000 
appropriation.
    The bill includes a provision that provides that of the 
unobligated balances available under the heading ``National 
Aeronautics and Space Administration, Human space flight,'' 
$15,000,000 shall be used only for research to be carried out 
on the International Space Station.
    The bill includes a provision that requires within five 
days of enactment of this Act the Secretary of State to report 
to the Committee on Appropriations on the projected uses of the 
unobligated balances of funds available under the heading 
``Agency for International Development, International Disaster 
Assistance.''
    In several instances, funds are provided to remain 
available until expended.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                               Appropriations
               Agency/Program                 Last year of    Authorization    in last year of   Appropriations
                                             authorization        level         authorization     in this bill
----------------------------------------------------------------------------------------------------------------
Department of Defense--Military:
    Military Personnel, Army...............        2001                (\1\)       $22,175,357          $164,000
    Military Personnel, Navy...............        2001                (\1\)        17,772,297            84,000
    Military Personnel, Marine Corps.......        2001                (\1\)         6,833,100            69,000
    Military Personnel, Air Force..........        2001                (\1\)        18,174,284           119,500
    Reserve Personnel, Army................        2001                (\1\)         2,473,001            52,000
    Reserve Personnel, Air Force...........        2001                (\1\)           971,024             8,500
    National Guard Personnel, Army.........        2001                (\1\)         3,782,536             6,000
    National Guard Personnel, Air Force....        2001                (\1\)         1,641,081            12,000
    Operation and Maintenance, Army........        2001          $19,280,381        19,144,431           666,100
    Operation and Maintenance, Navy........        2001           23,766,610        23,419,360         1,015,100
    Operation and Maintenance, Marine Corps        2001            2,826,291         2,778,758            54,400
    Operation and Maintenance, Air Force...        2001           22,395,221        22,383,521           848,000
    Operation and Maintenance, Defense-Wide        2001           11,740,569        11,844,480           123,100
    Operation and Maintenance, Army Reserve        2001            1,561,418         1,562,118            20,700
    Operation and Maintenance, Navy Reserve        2001              978,946           978,946            12,500
    Operation and Maintenance, Marine Corps        2001              144,159           145,959             1,900
     Reserve...............................
    Operation and Maintenance, Air Force           2001            1,903,859         1,903,659            34,200
     Reserve...............................
    Operation and Maintenance, Army                2001            3,182,335         3,333,835            39,300
     National Guard........................
    Operation and Maintenance, Air National        2001            3,468,375         3,474,375           119,700
     Guard.................................
    Other Procurement, Army................        2001            4,235,719         4,497,009             3,000
    Shipbuilding and Conversion, Navy......        2001           12,826,919        11,614,633           222,000
    Aircraft Procurement, Air Force........        2001            9,923,868         7,583,345            84,000
    Procurement of Ammunition, Air Force...        2001              646,808           647,808            73,000
    Missile Procurement, Air Force.........        2001            2,863,778         2,863,778            15,500
    Other Procurement, Air Force...........        2001            7,711,647         7,763,747            85,400
    Procurement, Defense-Wide..............        2001            2,278,408         2,346,258             5,800
    Research, Development, Test and                2001            5,568,482         6,342,552             5,000
     Evaluation, Army......................
    Research, Development, Test and                2001            8,715,335         9,494,374           151,000
     Evaluation, Navy......................
    Research, Development, Test and                2001           13,779,144        14,138,244           275,500
     Evaluation, Air Force.................
    Research, Development, Test and                2001           10,681,652        11,157,375            94,100
     Evaluation, Defense-Wide..............
    Defense Working Capital Funds..........        2001              916,276           916,276           178,400
    Defense Health Program.................        2001           11,124,237        11,414,393         1,654,600
    Drug Interdiction and Counter-Drug             2001              869,000           869,000             1,900
     Activities, Defense...................
    Military Construction, Army............        2001              737,595           936,245            62,000
    Military Construction, Navy............        2001              928,273           928,273             9,400
    Military Construction, Air Force.......        2001              870,208           882,208             8,000
    Family Housing, Army...................        2001            1,187,749         1,187,749            29,480
    Family Housing, Navy and Marine Corps..        2001            1,299,722         1,299,722            20,300
    Family Housing, Air Force..............        2001            1,072,861         1,072,861            18,000
    Base Realignment and Closure...........        2001            1,024,369         1,024,369             9,000
Department of Energy:
    Non-Defense Environmental Management...        1984                (\2\)             (\2\)            11,950
    Weapons Activities-Project 01-D-107            2001                3,689             3,689             3,689
     Atlas relocation \3\..................
    Weapons Activities-Project 01-D-108            2001                9,500             9,500             9,500
     MESA Complex \3\......................
    Western Area Power Administration......        1984              259,700           194,630             1,578
Department of Education:
    Education for the Disadvantaged/Grants         2000                (\4\)     7,941,397,000       161,000,000
     to LEAs...............................
House of Representatives:
    Payments to widows and heirs...........  .............  ................  ................           290,200
Department of Transportation:
    Coast Guard Operating expenses.........        1999            3,006,200         3,013,506        92,000,000
Department of Housing and Urban
 Development:
    Community Development Fund.............        1994            4,168,000         4,825,000         5,057,550
    FHA-General and Special Risk Program           1995                (\4\)           152,000           40,000
     Account...............................
----------------------------------------------------------------------------------------------------------------
\1\ The Fiscal Year 2001 National Defense Authorization Act (P.L. 106-398) authorizes $75,801,666,000 for
  military personnel.
\2\ Funding for environmental cleanup activities included in this account was previously included as part of
  regular facility operations and spread throughout many of the Department of Energy programs. The last year of
  authorization for these programs was 1984. However, in 1989 the cleanup activities were separated from regular
  facility operations and merged into the non-defense environmental management appropriation account. There has
  not been a separate authorization for this account.
\3\ Funding for each of these projects was authorized as part of Project 01-D-103, Project Engineering and
  Design. However, the activities to be performed in fiscal year 2001 are construction, not design,
  necessitating a transfer of the funds to new line-item construction projects.
\4\ Such sums.

                           Transfer of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following is submitted describing 
the transfer of funds provided in the accompanying bill.

----------------------------------------------------------------------------------------------------------------
                  Account to                        Amount                Account from                Amount
----------------------------------------------------------------------------------------------------------------
District of Columbia Funds Public Education           $250,000  Federal funds...................        $250,000
 System.......................................
Department of Veterans Affairs, General             19,000,000  Department of Veterans Affairs,       19,000,000
 Operating Expenses...........................                   Medical Care...................
----------------------------------------------------------------------------------------------------------------

    Language has been included in Department of Defense--
Military, which provides for the transfer of $222,000,000 from 
``Shipbuilding and Conversion, Navy'', to certain shipbuilding 
programs.
    Language has been included for Department of Defense--
Military, which allows for transfers of funds between 
``Operation and Maintenance, Navy'', and appropriations 
accounts for Procurement, for activities associated with the 
repair of the U.S.S. COLE.

                              Rescissions

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following table is submitted 
describing the rescissions recommended in the accompanying 
bill:

                  Rescissions Recommended in the Bill

                                                     Amounts recommended
        Department or Activity                            for rescission
Department of Defense:
    Procurement, Marine Corps 2000/2002.................      $3,000,000
    Overseas Contingency Operations Transfer Fund 2001..      81,000,000
    Aircraft Procurement, Navy 2001/2003................     330,000,000
    Procurement, Marine Corps 2001/2003.................       5,000,000
    Aircraft Procurement, Air Force 2001/2003...........     260,000,000
    Other Procurement, Air Force 2001/2003..............      65,000,000
    Procurement, Defense-Wide 2001/2003.................      85,000,000
    Intelligence Community Management Account 2001......       5,000,000
Department of Defense, Previous Military Construction 
    Appropriations Acts.................................      70,500,000
District of Columbia funds:
    Governmental Direction and Support..................         250,000
    Public Safety and Justice...........................         131,000
Department of Labor: Employment and Training 
    Administration, Training and Employment Services....     359,000,000
Department of Transportation: Grants-in-Aid for Airports 
    (contract authority)................................      30,000,000
Department of Housing and Urban Development: Public and 
    Indian Housing Certificate Fund..................... \1\ 114,300,000
Federal Emergency Management Agency: Disaster Relief....     389,200,000

\1\ In addition, the bill rescinds an undesignated amount to be 
determined on September 30, 2001.
---------------------------------------------------------------------------

                 Comparison With the Budget Resolution

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives requires an explanation of compliance with 
section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, which requires that the report accompanying a bill 
providing new budget authority contain a statement detailing 
how that authority compares with the reports submitted under 
section 302 of the Act for the most recently agreed to 
concurrent resolution on the budget for the fiscal year from 
the Committee's section 302(a) allocation. This information 
follows:

                        [In millions of dollars]
------------------------------------------------------------------------
                                           Remaining
                                         section 302(a)     This bill
                                           allocation
------------------------------------------------------------------------
Discretionary:
    Budget authority..................            6,874            6,545
    Outlays...........................            3,907            1,340
Mandatory:
    Budget authority..................              937              937
    Outlays...........................              936              936
------------------------------------------------------------------------

                      Five-Year Outlay Projections

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following table contains 
five-year projections associated with the budget authority 
provided in the accompanying bill:
                                                                Millions
Budget Authority........................................           7,482
Outlays:
    2001................................................           2,276
    2002................................................           4,229
    2003................................................             758
    2004................................................              20
    2005 and beyond.....................................             -83

               Assistance to State and Local Governments

    In accordance with section 308(a)(1)(C) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the financial assistance to 
State and local governments is as follows:

                                                                Millions
Budget Authority........................................              54
Fiscal Year 2001 outlays resulting therefrom............             100

                        Constitutional Authority

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives states that:

          Each report of a committee on a bill or joint 
        resolution of a public character, shall include a 
        statement citing the specific powers granted to the 
        Congress in the Constitution to enact the law proposed 
        by the bill or joint resolution.

    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America which 
states:

          No money shall be drawn from the Treasury but in 
        consequence of Appropriations made by law * * *

    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

         Compliance With Clause 3 of Rule XIII (Ramseyer Rule)

    In compliance with clause 3(e) 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, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

   AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND 
               RELATED AGENCIES APPROPRIATIONS ACT, 2001

           *       *       *       *       *       *       *



                TITLE III--RURAL DEVELOPMENT PROGRAMS

           *       *       *       *       *       *       *



                  Rural Community Advancement Program

    For the cost of direct loans, loan guarantees, and grants, 
as authorized by 7 U.S.C. 1926, 1926a, 1926c, 1926d, and 1932, 
except for sections 381E-H, 381N, and 381O of the Consolidated 
Farm and Rural Development Act, $762,542,000, to remain 
available until expended, of which $53,225,000 shall be for 
rural community programs described in section 381E(d)(1) of 
such Act; of which $644,360,000 shall be for the rural 
utilities programs described in sections 381E(d)(2), 
306C(a)(2), and 306D of such Act; and of which $64,957,000 
shall be for the rural business and cooperative development 
programs described in section 381E(d)(3) of such Act: Provided, 
That of the total amount appropriated in this account, 
$24,000,000 shall be for loans and grants to benefit Federally 
Recognized Native American Tribes, including grants for 
drinking and waste disposal systems pursuant to section 306C of 
such Act, of which $250,000 shall be available for a grant to a 
qualified national organization to provide technical assistance 
for rural transportation in order to promote economic 
development: Provided further, That of the amount appropriated 
for rural community programs, $6,000,000 shall be available for 
a Rural Community Development Initiative: Provided further, 
That such funds shall be used solely to develop the capacity 
and [ability of] ability of low income rural communities and 
private, nonprofit community-based housing and community 
development organizations serving low-income rural communities, 
including Federally Recognized Indian tribes to undertake 
projects to improve housing, community facilities, community 
and economic development projects in rural areas: Provided 
further, That such funds shall be made available to qualified 
private, nonprofit intermediary organizations (including 
tribal) proposing to carry out a program of financial and 
technical [assistance to] assistance and to other public 
entities with a record of achievement in providing technical 
and financial assistance to housing and community development 
organizations in rural areas: Provided further, That such 
intermediary organizations shall provide matching funds from 
other sources, including Federal funds for related activities, 
in an amount not less than funds provided: Provided further, 
That of the amount appropriated for rural community programs, 
not to exceed $5,000,000 shall be for hazardous weather early 
warning systems: Provided further, That of the amount 
appropriated for the rural business and cooperative development 
programs, not to exceed $500,000 shall be made available for a 
grant to a qualified national organization to provide technical 
assistance for rural transportation in order to promote 
economic development; $5,000,000 shall be for rural partnership 
technical assistance grants; and $2,000,000 shall be for grants 
to Mississippi Delta Region counties: Provided further, That of 
the amount appropriated for rural utilities programs, not to 
exceed $20,000,000 shall be for water and waste disposal 
systems to benefit the Colonias along the United States/Mexico 
borders, including grants pursuant to section 306C of such Act; 
not to exceed $20,000,000 shall be for water and waste disposal 
systems for rural and native villages in Alaska pursuant to 
section 306D of such Act, with up to 1 percent available to 
administer the program and up to 1 percent available to improve 
interagency coordination; not to exceed $16,215,000 shall be 
for technical assistance grants for rural waste systems 
pursuant to section 306(a)(14) of such Act; and not to exceed 
$9,500,000 shall be for contracting with qualified national 
organizations for a circuit rider program to provide technical 
assistance for rural water systems: Provided further, That of 
the total amount appropriated, not to exceed $42,574,650 shall 
be available through June 30, 2001, for authorized empowerment 
zones and enterprise communities and communities designated by 
the Secretary of Agriculture as Rural Economic Area Partnership 
Zones; of which $34,704,000 shall be for the rural utilities 
programs described in section 381E(d)(2) of such Act; and of 
which $8,435,000 shall be for the rural business and 
cooperative development programs described in section 
381E(d)(3) of such Act.

           *       *       *       *       *       *       *


                       D.C. Code, SECTION 31-1408


                   Subchapter I--Federal City College


Sec. 31-1408. Appropriation in lieu of donation of public lands

    In lieu of extending to the District of Columbia those 
provisions of the Act of July 2, 1862 (7 U.S.C. Sec. Sec. 301 
to 305, 307, and 308), relating to donations of public lands or 
land scrip for the endowment and maintenance of colleges for 
the benefit of agriculture and the mechanic arts, there is 
authorized to be appropriated to the District of Columbia the 
sum of $7,241,706. Amounts appropriated under this section 
shall be held and considered to have been granted to the 
District of Columbia subject to those provisions of that Act 
applicable to the proceeds from the sale of land or land scrip, 
except that the funds appropriated in this section also may be 
invested in equity based securities if approved by the Chief 
financial Officer of the District of Columbia. In addition, any 
proceeds and interest accruing thereon, which remain from the 
sale of the former radio station WDCU in an escrow account of 
the District of Columbia Financial Management and Assistance 
Authority for the benefit of the University of the District of 
Columbia, shall be used for the University of the District of 
Columbia's Endowment Fund. Such proceeds may be invested in 
equity based securities if approved by the Chief Financial 
Officer of the District of Columbia.

           *       *       *       *       *       *       *


  DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES APPROPRIATIONS ACT, 
                                 2001

           *       *       *       *       *       *       *



                     TITLE III--GENERAL PROVISIONS

           *       *       *       *       *       *       *


    Sec. 338. The authority to enter into stewardship and end 
result contracts provided to the Forest Service in accordance 
with section 347 of title III of section 101(e) of division A 
of Public Law [105-825] 105-277 is hereby expanded to authorize 
the Forest Service to enter into an additional 28 contracts 
subject to the same terms and conditions as provided in that 
section: Provided, That of the additional contracts authorized 
by this section at least 9 shall be allocated to Region 1 and 
at least 3 to Region 6.

           *       *       *       *       *       *       *


  NATIONAL FOREST AND PUBLIC LANDS OF NEVADA ENHANCEMENT ACT OF 1988

           *       *       *       *       *       *       *



SEC. 2. OVERTIME PAY FOR CERTAIN FIREFIGHTERS.

    (a) * * *
    [(b) Effective Date.--The amendments made by this section 
shall take effect on the first day of the first applicable pay 
period beginning on or after the end of the 30-day period 
beginning on the date of the enactment of this Act, and shall 
apply only to funds appropriated after the date of the 
enactment of this Act.]
    (b) Effective Date.--The amendments made by this section 
shall take effect on the date of enactment of this Act.

           *       *       *       *       *       *       *


  DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND 
               RELATED AGENCIES APPROPRIATIONS ACT, 2001

           *       *       *       *       *       *       *



                  TITLE III--DEPARTMENT OF EDUCATION

           *       *       *       *       *       *       *



                    Education for the Disadvantaged

  For carrying out title I of the Elementary and Secondary 
Education Act of 1965, and section 418A of the Higher Education 
Act of 1965, $9,532,621,000, of which $2,731,921,000 shall 
become available on July 1, 2001, and shall remain available 
through September 30, 2002, and of which $6,758,300,000 shall 
become available on October 1, 2001 and shall remain available 
through September 30, 2002, for academic year 2001-2002: 
Provided, That [$7,332,721,000] $7,237,721,000 shall be 
available for basic grants under section 1124: Provided 
further, That $225,000,000 of these funds shall be allocated 
among the States in the same proportion as funds are allocated 
among the States under section 1122, to carry out section 
1116(c): Provided further, That 100 percent of these funds 
shall be allocated by States to local educational agencies for 
the purposes of carrying out section 1116(c): Provided further, 
That all local educational agencies receiving an allocation 
under the preceding proviso, and all other local educational 
agencies that are within a State that receives funds under part 
A of title I of the Elementary and Secondary Education Act of 
1965 (other than a local educational agency within a State 
receiving a minimum grant under section 1124(d) or 
1124A(a)(1)(B) of such Act), shall provide all students 
enrolled in a school identified under section 1116(c) with the 
option to transfer to another public school within the local 
educational agency, including a public charter school, that has 
not been identified for school improvement under section 
1116(c), unless such option to transfer is prohibited by State 
law, or local law, which includes school board-approved local 
educational agency policy: Provided further, That if the local 
educational agency demonstrates to the satisfaction of the 
State educational agency that the local educational agency 
lacks the capacity to provide all students with the option to 
transfer to another public school, and after giving notice to 
the parents of children affected that it is not possible, 
consistent with State and local law, to accommodate the 
transfer request of every student, the local educational agency 
shall permit as many students as possible (who shall be 
selected by the local educational agency on an equitable basis) 
to transfer to a public school that has not been identified for 
school improvement under section 1116(c): Provided further, 
That up to $3,500,000 of these funds shall be available to the 
Secretary on October 1, 2000, to obtain updated local 
educational agency level census poverty data from the Bureau of 
the Census: Provided further, That $1,364,000,000 shall be 
available for concentration grants under section 1124A: 
Provided further, That grant awards under sections 1124 and 
1124A of title I of the Elementary and Secondary Education Act 
of 1965 shall be not less than the greater of 100 percent of 
the amount each State and local educational agency received 
under this authority for fiscal year 2000 or the amount such 
State and local educational agency would receive if 
$6,883,503,000 for Basic Grants and $1,222,397,000 for 
Concentration Grants were allocated in accordance with section 
1122(c)(3) of title I: Provided further, That notwithstanding 
any other provision of law, grant awards under section 1124A of 
title I of the Elementary and Secondary Education Act of 1965 
shall be made to those local educational agencies that received 
a Concentration Grant under the Department of Education 
Appropriations Act, 2000, but are not eligible to receive such 
a grant for fiscal year 2001: Provided further, That the 
Secretary shall not take into account the hold harmless 
provisions in this section in determining State allocations 
under any other program administered by the Secretary in any 
fiscal year: Provided further, That $8,900,000 shall be 
available for evaluations under section 1501 and not more than 
$8,500,000 shall be reserved for section 1308, of which not 
more than $3,000,000 shall be reserved for section 1308(d): 
Provided further, That $210,000,000 shall be available under 
section 1002(g)(2) to demonstrate effective approaches to 
comprehensive school reform to be allocated and expended in 
accordance with the instructions relating to this activity in 
the statement of the managers on the conference report 
accompanying Public Law 105-78 and in the statement of the 
managers on the conference report accompanying Public Law 105-
277: Provided further, That in carrying out this initiative, 
the Secretary and the States shall support only approaches that 
show the most promise of enabling children served by title I to 
meet challenging State content standards and challenging State 
student performance standards based on reliable research and 
effective practices, and include an emphasis on basic academics 
and parental involvement.

           *       *       *       *       *       *       *


            Education Research, Statistics, and Improvement

  For carrying out activities authorized by the Educational 
Research, Development, Dissemination, and Improvement Act of 
1994, including part E; the National Education Statistics Act 
of 1994, including sections 411 and 412; section 2102 of title 
II, parts A, B, K, and L and sections 10102 and 10601 of title 
X, and part C of title XIII of the Elementary and Secondary 
Education Act of 1965, as amended, and title VI of Public Law 
103-227, $732,721,000: Provided, That of the funds appropriated 
for part A of title X of the Elementary and Secondary Education 
Act of 1965, as amended, $5,000,000 shall be made available for 
a high school reform program of grants to State educational 
agencies to improve academic performance and provide technical 
skills training: Provided further, That of the funds 
appropriated for part A of title X of the Elementary and 
Secondary Education Act of 1965, as amended, $5,000,000 shall 
be made available to carry out part L of title X of the Act: 
Provided further, That of the amount available for part A of 
title X of the Elementary and Secondary Education Act of 1965, 
as amended, $5,000,000 shall be available for grants to State 
and local educational agencies, in collaboration with other 
agencies and organizations, for school dropout prevention 
programs designed to address the needs of populations or 
communities with the highest dropout rates: Provided further, 
That of the amount made available for part A of title X of the 
Elementary and Secondary Education Act of 1965, as amended, 
$50,000,000 shall be made available to enable the Secretary of 
Education to award grants to develop, implement, and strengthen 
programs to teach American history (not social studies) as a 
separate subject within school curricula: Provided further, 
That $53,000,000 of the amount available for the national 
education research institutes shall be allocated 
notwithstanding section 912(m)(1)(B-F) and subparagraphs (B) 
and (C) of section 931(c)(2) of Public Law 103-227 and 
$20,000,000 of that $53,000,000 shall be made available for the 
Interagency Education Research Initiative: Provided further, 
That of the funds appropriated for part A of title X of the 
Elementary and Secondary Education Act, as amended, $50,000,000 
shall be available to demonstrate effective approaches to 
comprehensive school reform, to be allocated and expended in 
accordance with the instructions relating to this activity in 
the statement of managers on the conference report accompanying 
Public Law 105-78 and in the statement of the managers on the 
conference report accompanying Public Law 105-277: Provided 
further, That the funds made available for comprehensive school 
reform shall become available on July 1, 2001, and remain 
available through September 30, 2002, and in carrying out this 
initiative, the Secretary and the States shall support only 
approaches that show the most promise of enabling children to 
meet challenging State content standards and challenging State 
student performance standards based on reliable research and 
effective practices, and include an emphasis on basic academics 
and parental involvement: Provided further, That [$139,624,000] 
$139,853,000 of the funds for section 10101 of the Elementary 
and Secondary Education Act of 1965 shall be available for the 
projects and in the amounts specified in the statement of the 
managers on the conference report accompanying this Act: 
Provided further, That of the funds appropriated under section 
10601 of title X of the Elementary and Secondary Education Act 
of 1965, as amended, $2,000,000 shall be used to conduct a 
violence prevention demonstration program: Provided further, 
That of the funds available for section 10601 of title X of the 
Elementary and Secondary Education Act of 1965, as amended, 
$150,000 shall be awarded to the Center for Educational 
Technologies to complete production and distribution of an 
effective CD-ROM product that would complement the ``We the 
People: The Citizen and the Constitution'' curriculum: Provided 
further, That, of the funds for title VI of Public Law 103-227 
and notwithstanding the provisions of section 601(c)(1)(C) of 
that Act, $1,200,000 shall be available to the Center for Civic 
Education to conduct a civic education program with Northern 
Ireland and the Republic of Ireland and, consistent with the 
civics and Government activities authorized in section 
601(c)(3) of Public Law 103-227, to provide civic education 
assistance to democracies in developing countries. The term 
``developing countries'' shall have the same meaning as the 
term ``developing country'' in the Education for the Deaf Act.

           *       *       *       *       *       *       *


DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT, AND 
             INDEPENDENT AGENCIES APPROPRIATIONS ACT, 2001

           *       *       *       *       *       *       *



                              TITLE III

           *       *       *       *       *       *       *



                    ENVIRONMENTAL PROTECTION AGENCY


                   State and Tribal Assistance Grants

    For environmental programs and infrastructure assistance, 
including capitalization grants for State revolving funds and 
performance partnership grants, [$3,628,740,000] 
$3,641,341,386, to remain available until expended, of which * 
* * and that the fiscal year 1999 and any subsequent funds may 
be used for any required non-federal share of the costs of 
projects funded by the federal government under section 580 of 
Public Law 106-53.

           *       *       *       *       *       *       *


             NATIONAL AERONAUTICS AND SPACE ADMINISTRATION


                           Human Space Flight

    For necessary expenses, not otherwise provided for, in the 
conduct and support of human space flight research and 
development activities, including research, development, 
operations, and services; maintenance; construction of 
facilities including repair, rehabilitation, and modification 
of real and personal property, and acquisition or condemnation 
or real property, as authorized by law; space flight, 
spacecraft control and communications activities including 
operations, production, and services; and purchase, lease, 
charter, maintenance and operation of mission and 
administrative aircraft, $5,510,900,000, to remain available 
until September 30, 2001[: Provided, That $40,000,000 of the 
amount provided in this paragraph shall be available to the 
space shuttle program only for preparations necessary to carry 
out a life and micro-gravity science mission, to be flown 
between STS-107 and December 2001].
                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each rollcall vote 
on an amendment or on the motion to report, together with the 
names of those voting for and those voting against, are printed 
below:

                             rollcall no. 1

    Date: June 14, 2001.
    Measure: Supplemental Appropriations Bill, FY 2001.
    Motion by: Ms. DeLauro.
    Description of motion: To provide $600,000,000 in 
contingency emergency appropriations to the low-income home 
energy assistance program, to provide $1.4 billion to the low-
income home energy assistance program as an advance 
appropriation for fiscal year 2002, and to reduce the Federal 
Emergency Management Agency disaster relief rescission by 
$300,000,000.
    Results: Rejected 29 yeas to 32 nays.
        Members Voting Yea            Members Voting Nay
Mr. Aderholt                        Mr. Bonilla
Mr. Clyburn                         Mr. Callahan
Mr. Cramer                          Mr. Cunningham
Ms. DeLauro                         Mr. Doolittle
Mr. Dicks                           Mr. Frelinghuysen
Mr. Edwards                         Mr. Goode
Mrs. Emerson                        Ms. Granger
Mr. Farr                            Mr. Hobson
Mr. Fattah                          Mr. Istook
Mr. Hinchey                         Mr. Kingston
Mr. Jackson                         Mr. Knollenberg
Ms. Kaptur                          Mr. Kolbe
Mr. Kennedy                         Mr. LaHood
Ms. Kilpatrick                      Mr. Latham
Mrs. Lowey                          Mr. Lewis
Mrs. Meek                           Mr. Miller
Mr. Mollohan                        Mr. Nethercutt
Mr. Moran                           Mrs. Northup
Mr. Murtha                          Mr. Regula
Mr. Obey                            Mr. Rogers
Mr. Olver                           Mr. Sherwood
Mr. Pastor                          Mr. Skeen
Ms. Pelosi                          Mr. Sununu
Mr. Price                           Mr. Sweeney
Mr. Rothman                         Mr. Taylor
Ms. Roybal-Allard                   Mr. Tiahrt
Mr. Sabo                            Mr. Vitter
Mr. Serrano                         Mr. Walsh
Mr. Visclosky                       Mr. Wamp
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             rollcall no. 2

    Date: June 13, 2001.
    Measure: Supplemental Appropriations Bill, FY 2001.
    Motion by: Mr. Visclosky.
    Description of motion: To authorize the Secretary of the 
Army to make direct loans and loan guarantees, not exceeding 
$40,000,000 in aggregate, for improvements at existing non-
federal hydropower facilities, to provide $85,000,000 for 
repairs and improvements to federal hydropower facilities, and 
to designate these amounts as contingent emergency 
appropriations.
    Results: Rejected 24 yeas to 31 nays.
        Members Voting Yea            Members Voting Nay
Mr. Cramer                          Mr. Aderholt
Ms. DeLauro                         Mr. Callahan
Mr. Dicks                           Mr. Cunningham
Mr. Edwards                         Mr. Doolittle
Mr. Farr                            Mrs. Emerson
Mr. Fattah                          Mr. Frelinghuysen
Mr. Hinchey                         Mr. Hobson
Mr. Hoyer                           Mr. Istook
Mr. Jackson                         Mr. Kingston
Ms. Kaptur                          Mr. Knollenberg
Mr. Kennedy                         Mr. Kolbe
Ms. Kilpatrick                      Mr. LaHood
Mrs. Lowey                          Mr. Latham
Mrs. Meek                           Mr. Lewis
Mr. Nethercutt                      Mr. Miller
Mr. Obey                            Mr. Mollohan
Mr. Olver                           Mr. Murtha
Ms. Pelosi                          Mrs. Northup
Mr. Price                           Mr. Regula
Mr. Rothman                         Mr. Rogers
Ms. Roybal-Allard                   Mr. Sherwood
Mr. Sabo                            Mr. Skeen
Mr. Serrano                         Mr. Sununu
Mr. Visclosky                       Mr. Sweeney
                                    Mr. Taylor
                                    Mr. Tiahrt
                                    Mr. Vitter
                                    Mr. Walsh
                                    Mr. Wamp
                                    Mr. Wicker
                                    Mr. Young
                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             rollcall no. 3

    Date: June 14, 2001.
    Measure: Supplemental Appropriations Bill, FY 2001.
    Motion by: Mr. Farr.
    Description of motion: To authorize the Secretary of Energy 
to make direct loans and loan guarantees, not exceeding 
$350,000,000 in aggregate, for improvements to existing non-
federal electric power transmission systems, and to designate 
this amount as a contingent emergency appropriation.
    Results: Rejected 24 yeas to 35 nays.
        Members Voting Yea            Members Voting Nay
Mr. Clyburn                         Mr. Aderholt
Ms. DeLauro                         Mr. Callahan
Mr. Dicks                           Mr. DeLay
Mr. Edwards                         Mr. Doolittle
Mr. Farr                            Mrs. Emerson
Mr. Fattah                          Mr. Frelinghuysen
Mr. Hinchey                         Mr. Goode
Mr. Hoyer                           Ms. Granger
Mr. Jackson                         Mr. Hobson
Ms. Kaptur                          Mr. Istook
Mr. Kennedy                         Mr. Kingston
Ms. Kilpatrick                      Mr. Knollenberg
Mrs. Lowey                          Mr. Kolbe
Mrs. Meek                           Mr. LaHood
Mr. Moran                           Mr. Latham
Mr. Obey                            Mr. Lewis
Mr. Olver                           Mr. Miller
Mr. Pastor                          Mr. Mollohan
Ms. Pelosi                          Mr. Nethercutt
Mr. Price                           Mrs. Northup
Mr. Rothman                         Mr. Peterson
Ms. Roybal-Allard                   Mr. Regula
Mr. Serrano                         Mr. Rogers
Mr. Visclosky                       Mr. Sherwood
                                    Mr. Skeen
                                    Mr. Sununu
                                    Mr. Sweeney
                                    Mr. Taylor
                                    Mr. Tiahrt
                                    Mr. Vitter
                                    Mr. Walsh
                                    Mr. Wamp
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             rollcall no. 4

    Date: June 14, 2001.
    Measure: Supplemental Appropriations Bill, FY 2001.
    Motion by: Mrs. Lowey.
    Description of motion: to provide $100,000,000 to the 
Agency for International Development, Child Survival and 
Disease Programs Fund, to provide $50,000,000 to Development 
Assistance, to provide $100,000,000 to a global trust fund to 
fight HIV/AIDS, malaria, and tuberculosis, and to designate 
these amounts as contingent emergency appropriations.
    Results: Rejected 25 yeas to 30 nays.
        Members Voting Yea            Members Voting Nay
Mr. Boyd                            Mr. Aderholt
Mr. Clyburn                         Mr. Bonilla
Ms. DeLauro                         Mr. Cunningham
Mr. Dicks                           Mr. Doolittle
Mr. Edwards                         Mrs. Emerson
Mr. Farr                            Mr. Frelinghuysen
Mr. Fattah                          Mr. Goode
Mr. Hinchey                         Ms. Granger
Ms. Kaptur                          Mr. Hobson
Mr. Kennedy                         Mr. Istook
Ms. Kilpatrick                      Mr. Kingston
Mrs. Lowey                          Mr. Knollenberg
Mrs. Meek                           Mr. Kolbe
Mr. Mollohan                        Mr. LaHood
Mr. Murtha                          Mr. Latham
Mr. Obey                            Mr. Lewis
Mr. Olver                           Mr. Miller
Mr. Pastor                          Mr. Nethercutt
Ms. Pelosi                          Mr. Peterson
Mr. Price                           Mr. Regula
Mr. Rothman                         Mr. Rogers
Ms. Roybal-Allard                   Mr. Sherwood
Mr. Sabo                            Mr. Skeen
Mr. Serrano                         Mr. Sununu
Mr. Visclosky                       Mr. Sweeney
                                    Mr. Vitter
                                    Mr. Walsh
                                    Mr. Wamp
                                    Mr. Wolf
                                    Mr. Young
                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             rollcall no. 5

    Date: June 14, 2001.
    Measure: Supplemental Appropriations Bill, FY 2001.
    Motion by: Ms. Kaptur.
    Description of motion: To provide an additional $35,000,000 
for Animal and Plant Health Inspection Service, Salaries and 
expenses.
    Results: Rejected 27 yeas to 35 nays.
        Members Voting Yea            Members Voting Nay
Mr. Boyd                            Mr. Aderholt
Mr. Clyburn                         Mr. Bonilla
Ms. DeLauro                         Mr. Callahan
Mr. Dicks                           Mr. Cunningham
Mr. Edwards                         Mr. DeLay
Mr. Farr                            Mr. Doolittle
Mr. Fattah                          Mrs. Emerson
Mr. Frelinghuysen                   Mr. Goode
Mr. Hinchey                         Ms. Granger
Mr. Hoyer                           Mr. Hobson
Mr. Jackson                         Mr. Istook
Ms. Kaptur                          Mr. Kingston
Mr. Kennedy                         Mr. Knollenberg
Ms. Kilpatrick                      Mr. Kolbe
Mrs. Lowey                          Mr. LaHood
Mrs. Meek                           Mr. Latham
Mr. Mollohan                        Mr. Lewis
Mr. Obey                            Mr. Miller
Mr. Olver                           Mr. Murtha
Mr. Pastor                          Mr. Nethercutt
Ms. Pelosi                          Mr. Peterson
Mr. Price                           Mr. Regula
Mr. Rothman                         Mr. Rogers
Ms. Roybal-Allard                   Mr. Sherwood
Mr. Sabo                            Mr. Skeen
Mr. Serrano                         Mr. Sununu
Mr. Visclosky                       Mr. Sweeney
                                    Mr. Taylor
                                    Mr. Tiahrt
                                    Mr. Vitter
                                    Mr. Walsh
                                    Mr. Wamp
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each roll vote on 
an amendment or on the motion to report, together with the 
names of those voting for and those voting against, are printed 
below:

                             RollCall No. 6

    Date: June 14, 2001.
    Measure: Supplemental Appropriations Bill, FY 2001.
    Motion by: Ms. Pelosi.
    Description of motion: To require the Federal Energy 
Regulatory Commission to impose ``cost-of-service'' limits on 
the price of wholesale electricity sold in the Western region 
for the next two years.
    Results: Rejected 27 yeas to 34 nays.
        Members Voting Yea            Members Voting Nay
Mr. Boyd                            Mr. Aderholt
Mr. Clyburn                         Mr. Bonilla
Ms. DeLauro                         Mr. Callahan
Mr. Dicks                           Mr. Cunningham
Mr. Farr                            Mr. DeLay
Mr. Fattah                          Mr. Doolittle
Mr. Hinchey                         Mr. Edwards
Mr. Hoyer                           Mrs. Emerson
Mr. Jackson                         Mr. Frelinghuysen
Ms. Kaptur                          Mr. Goode
Mr. Kennedy                         Ms. Granger
Ms. Kilpatrick                      Mr. Hobson
Mrs. Lowey                          Mr. Istook
Mrs. Meek                           Mr. Kingston
Mr. Mollohan                        Mr. Knollengberg
Mr. Moran                           Mr. Kolbe
Mr. Murtha                          Mr. LaHood
Mr. Obey                            Mr. Latham
Mr. Olver                           Mr. Lewis
Mr. Pastor                          Mr. Miller
Ms. Pelosi                          Mr. Nethercutt
Mr. Price                           Mr. Peterson
Mr. Rothman                         Mr. Regula
Ms. Roybal-Allard                   Mr. Sherwood
Mr. Sabo                            Mr. Skeen
Mr. Serrano                         Mr. Sununu
Mr. Visclosky                       Mr. Sweeney
                                    Mr. Tiahrt
                                    Mr. Vitter
                                    Mr. Walsh
                                    Mr. Wamp
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
                                    
                                    

                  DISSENTING VIEWS OF HON. DAVID OBEY

    The problems facing Americans today are in some respects 
quite different from those the country faced last fall when 
Appropriations were enacted for the current fiscal year. With 
gasoline prices up as much as 50 cents a gallon, a two car 
family can expect to pay about $600 dollars a year more to the 
oil companies and they will be paying a similar increase in 
heating and electrical costs. This is about a thousand or so 
dollars per household that won't be available for replacing the 
family car, buying new clothes or saving for college education. 
As a result many businesses are suffering and the whole economy 
has gotten softer.
    While higher energy prices have affected households in 
every part of the United States, the impact on the West Coast 
has been much more severe. Many Americans in other parts of the 
United States are still not aware of how serious the situation 
is in the West and how much it may impact the overall national 
economy. Because more than one in eight Americans live in the 
three West Coast states and because so much of our export 
oriented and high tech industries are concentrated in those 
states, serious economic disruptions on the coast are certain 
to have a big impact on the economies of virtually all of the 
47 other states.
    Ironically, this supplemental is before the Congress 
largely because of energy problems. When fuel prices rise, the 
cost of flying planes, fueling ships and driving tanks also 
goes up and the military needs more money. This bill at least 
partially addresses those costs. (Many who follow the defense 
budget in detail, however, believe that the armed services may 
still have to scale back training, maintenance and other 
activities in the final months of the fiscal year because of 
our failure to fully offset these higher fuel costs.)
    But the major failing of this Supplemental is that it does 
not address the energy crisis with respect to any other segment 
of the society or the American economy. It does not take a 
number of simple and straightforward steps that could be 
critical in boosting the near term availability of electrical 
power, protecting consumers from the extreme price gouging 
occurring in some segments of the industry and insulating the 
American economy from further damage from rising energy prices. 
Finally, it does far less than is necessary to protect low 
income and elderly households from the devastating impact that 
high-energy prices have on their ability to afford food, 
medicine and other necessities.

                           the energy problem

    Fluctuations in the cost of energy have played a major role 
in the performance of the American economy since the early 
1970s. Rising fuel prices have contributed to at least three 
recessions over the last three decades and falling fuel prices 
have caused dislocations and bankruptcies in our own energy 
producing states and wreaked serious havoc with the entire 
international financial system.
    The current situation differs from those of the past in 
that it is caused not only by an imbalance between the demand 
and supply of fossil fuels but also by serious emerging 
structural problems in the industries that generate and 
transmit electricity. While California and the West Coast 
provide the most obvious examples of these problems they are 
not strictly West Coast problems.
    The deregulation and restructuring of the electrical 
utility industry that began more than a decade ago has left 
investors with considerable uncertainty as to how far 
deregulation will eventually go and how competitive the market 
for electricity will be. As a result there has been little 
growth in capacity for either generating or transmitting 
electrical power even though the economy has grown at a 
remarkable pace for most of that same period. As demand for 
electricity began to approach the capacity to generate it some 
producers came to realize that by withholding output they could 
force significantly higher prices in the newly deregulated 
environment. As a result, consumers are faced with a market 
that is neither competitive nor regulated.
    There are three fundamental reasons that this problem is 
more severe in California and on the West Coast. First, 
California's attempt at deregulation was particularly inept. 
Wholesale prices were unleashed while retail prices remained 
regulated. That worked only as long as the price of the oil and 
natural gas used for generating electricity continued to fall. 
Once oil and gasprices began to rise, retail suppliers were 
caught in an untenable squeeze and consumers were given no incentive to 
conserve.
    Second, the national power grid has never had significant 
capacity to transmit electricity from east of the Rockies to 
California and the West Coast. As a result, there is much less 
competition in the wholesale electricity market in the West 
than in other parts of the country.
    Third, the West has relied more heavily on hydroelectric 
power than most other parts of the country. Hydroelectric power 
is dependent on rainfall and the Pacific Northwest where most 
of the dams are located has been suffering from a severe 
drought.
    The combination of these factors has produced not only 
dramatic increases in the price of electricity but also in 
blackouts that jeopardize production and profitability in a 
wide array of industries. Producers are typically charging 
between 10 and 30 times the historical rate for electricity and 
in some instances they have been able to charge as much as 129 
times the historical rate. Typical homeowners in many parts of 
the state have seen their monthly electricity bills go from 
$100 to more than $800. In some communities more than half of 
all small businesses are either in bankruptcy or in the process 
of applying for bankruptcy protection. A significant number of 
larger employers have actually shut down operations. In total, 
electricity costs in California have gone from $7 billion a 
year to around $70 billion. Even in a state with a trillion 
dollar a year economy, that is a huge diversion of GDP from 
other sectors of the economy to the utility companies.
    That means that states like Wisconsin that produce capital 
goods have seen their California markets evaporate and now have 
surplus inventories. States like Michigan, Ohio and Missouri 
are seeing layoffs in the automobile industry. Sales are off in 
the publishing, recording and household products industries 
largely because of the bite the electricity market in 
California is taking out of that state's ability to grow and 
consume products from other parts of the United States.

                           what can be done?

    The United States faces both short-term and long-term 
problems with respect to energy. Under existing technologies 
our growing economy requires more and more energy, makes us 
more and more dependent on oil from the Persian Gulf, and 
therefore inevitably more vulnerable to political disruptions 
in that part of the world. At the same time it increases air 
and water pollution and jeopardizes the global climate. Finding 
ways to reduce our consumption of energy will help control 
prices, improve the quality of our air and water and reduce the 
vulnerability of our economy to events in Southwest Asia. 
Finding alternative forms of energy will also help achieve all 
three of those objectives. Those activities require the kind of 
long term and high-risk investments that the private sector is 
not likely to undertake and they should be funded in our 
regular appropriation bills as the high priority investments 
that any sensible assessment of our economic and security needs 
indicate they deserve.
    But the electricity crisis could do serious damage to our 
current prosperity if we do not take action now for short-term 
remedies. The Democratic members of the Appropriations 
Committee put forward a series of such initiatives when the 
Committee met to consider this Supplemental on June 14th. 
Action on this legislation had been delayed for months based on 
the President's decision not to send forward a budget request 
until the Congress had completed action on the tax bill. As a 
result remedies to the energy crisis that could be underway are 
only now being considered. Unfortunately, even when the 
Supplemental budget request finally did reach the Committee, 
Republican Congressional leaders maintained rigid discipline in 
dissuading committee members of their party from supporting 
these proposals. As a result none were adopted. That is deeply 
disturbing since this Supplemental is the single best and--
perhaps only--legislative vehicle that can put resources to use 
this summer in mitigating the crisis.
    There were four separate amendments presented to the 
committee, each dealing with a separate portion of the energy 
crisis.
           Temporary cost-of-service price limits in 
        Western states (Roll Call #6);
           $350 million for national electric power 
        grid improvement loans (Roll Call #3);
           $125 million for national hydroelectric 
        power improvement loans (Roll Call #2); and
           $600 million in fiscal year 2001 and $1.4 
        billion in fiscal year 2002 for increased emergency 
        funding for the Low-Income Home Energy Assistance 
        Program (LIHEAP) (Roll Call #1).
Temporary Cost-of-Service Price Limits (Roll Call #6)
    It is essential to address the price-limit issue on this 
emergency supplemental appropriations funding bill. No one 
disagrees that the current wholesale energy market in the West 
is dysfunctional. Wholesale spot-market electricity rates that 
used to be around $30 per megawatt hour in the past have ranged 
between $200 and $300 a megawatt hour this spring, with typical 
peaks as high as $1,000 per megawatt hour.
    Federal Energy Regulation Commission (FERC) orders issued 
to date this year put in place market-based limits and close 
loopholes which previously allowed energy generators to avoid 
FERC regulation, for example by shipping power out-of-state and 
then reimporting it during emergencies at unreasonable prices. 
FERC orders to date, however, do not prohibit all energy 
providers from overcharging since FERC still uses market-based 
instead of cost-of-service based rates. Recent FERC orders to 
date do not effectively rectiviy overcharges that have occurred 
since June 2000, nor compel refunds in cases where prices have 
not been fair and reasonable.
    During this past year, while ordinary citizens and small 
businesses were suffering, a few energy generators and energy 
marketers made record high profits on the backs of the Western 
states. On June 5, Duke Energy confirmed that it sold 
electricity in California for as much as $3,880 a megawatt hour 
(129 times the historical rate)--double the rate that Governor 
Grey Davis cited as an ``obscene'' example of price gouging.
    In May, 41 Member of Congress introduced H.R. 1468, the 
Energy Price and Economic Stability Act of 2001. The bill has 
two main features: (1) It sets a temporary limit for wholesale 
energy prices in the Western United States at a cost-of-service 
(rather than a market based) rate, to include a reasonable risk 
premium or a return on invested capital; and (2) it allows 
States which are charged unjust and unreasonable electricity 
rates since June 1, 2000 to obtain refunds, if they are 
successful in bringing action in U.S. district court. The 
bill's provisions expire in March, 2003. The price limits in 
this amendment are essential to stabilizing the power market in 
Western states until sufficient supply can be brought on-line 
to allow competitive market forces to ensure fair and 
reasonable prices.
    H.R. 1468 is a very reasonable, moderate, flexible, and 
temporary response to the severe energy crisis in the Western 
states. The amendment proposed by Democrats an amendment to 
this supplemental appropriations bill would simple enact H.R. 
1468 as part of the larger bill, to provide immediate temporary 
relief to millions of American citizens in a number of Western 
states. A senior Republican leader said when the amendment was 
offered that ``California made its bed, and now California 
should sleep in it''. The Majority voted along party lines to 
reject it (Roll Call #6).
Electric Power Grid Improvement Loans (Roll Call #3).
    Electricity competition has led to significant changes in 
the operation of the bulk power grid (the powers plants and 
high-voltage transmissions facilities that make up the 
wholesale power market). More and more electricity is being 
shipped longer distances over a transmission system that was 
originally designed only to provide limited power and reserve-
sharing among neighboring utilities.
    Competition in electricity has already dramatically 
increased the movement of power within and between regions of 
the country. Over the next ten years, the Department of Energy 
predicts that demand for electric power will increase by 25 
percent, and more than 200,000 megawatts of new capacity will 
be required. However, under current plans electric transmission 
capacity will not be nearly enough to keep pace. This shortage 
could lead to serious transmission congestion and electric 
reliability problems. Regional shortages of generating capacity 
and the increasing stress placed on the existing transmission 
system are combining today to reduce the overall reliability of 
electric supply in the country and are reducing the quality of 
power delivered to end-users.
    The best example of how this has developed into an 
emergency situation is Path 15 in California, which consists of 
two 84-mile 500 kilovolt transmission lines between the 
northern and southern parts of the state. There is consensus 
that Path 15 is a major bottleneck which contributes to 
blackouts in the state. Between April, 1998 and January, 2001 
there were 226 incidents where the flow on Path 15 exceeded the 
south-to-north stability limits. As a result, electricity was 
diverted to other transmissionlines and routed through Nevada 
and Oregon. The California Independent System operator concluded that 
for the period between September 1999 and December 2000 congestion on 
Path 15 cost consumers $222 million.
    California utilities would like to add a third transmission 
line along the existing path at an approximate cost of $250 
million to increase transfer capability by approximately 1,500 
megawatts. The Secretary of Energy recently testified before 
the Committee that constructing the third Path 15 line would 
increase transmission system reliability, reduce the likelihood 
of blackouts, and lead to greater competition and lower prices. 
Unfortunately, due to the recent energy crisis, California 
utilities that are in very poor financial condition have no 
means to undertake such a project at this time.
    The Secretary of Energy also recently testified that the 
electric price spikes in the Midwest in the summer of 1998 were 
caused in part by transmission constraints limiting the ability 
of the region to import electricity from other regions of the 
country with available electric power. During the summer of 
2000, cool weather in the Midwest and hot temperatures in the 
deep South created a heavy north-to-south flow of lower-cost, 
efficient Midwestern electricity to serve air conditioning 
loads. However, because the transmission system was unable to 
accommodate the heavy loads, the South had to turn on 
inefficient, older generation units. The Secretary also 
testified that transmission constraints have been a persistent 
cause of price spikes in New York in recent years.
    The obsolescence of the nation's electric power 
transmission grid has become an emergency that requires 
immediate attention. The problem is not one limited to just 
California, or even the Western states: it is clearly a 
national problem that potentially affects all citizens. To 
address it does not mean that there has to be a Federal 
ownership or operational role in local or regional power 
transmission. A loan program can provide the up-front cash to 
accelerate projects around the country that will quickly lead 
to improved, lower-cost, and more efficient power transmission. 
As upgraded or new power lines or systems are used, the 
recipients of loans can reimburse the government over time in a 
manner that minimizes burden on local communities yet fully 
recoups the cost of the government's loan which in the long 
term would be zero.
    The Democrats proposed an amendment to this bill to allow 
the Secretary of Energy to provide $350 million in loans to 
states, companies, and other outdated equipment would improve 
system reliability by reducing the number of generators going 
out of service and improve generator efficiency.
    In the Pacific Northwest, up to 70 percent of electricity 
is generated from hydropower. A continued lack of funding has 
reduced the Corps' ability to sustain the reliability of its 
hydropower production at its facilities in the Pacific 
Northwest which are essential for providing power in the 
Western states. Facilities in Oregon, Washington, and Idaho 
have a backlog of repair items affecting not only the power 
plant facilities, but also associated dam and reservoir 
maintenance to assure continued safety and environmental 
protection including fish habitat. The Army Corps of Engineers 
needs $45 million to repair earthquake damage to hydropower 
facilities and to correct major environmental deficiencies in 
the Pacific Northwest in the states of Washington and Oregon. 
Performance of this maintenance would also increase power 
generation reliability through use of modern technology.
    The Democrats proposed an amendment for $125,000,000 as 
follows: up to $40 million for loans to operators of non-
federal dams for energy efficiency improvements, $45 million 
for repairs and improvements to dams in the Pacific Northwest, 
and $40 million for repairs and upgrades to dams operated by 
the Army Corps of Engineers or the Bureau of Reclamation within 
the Department of the Interior. None of these funds could be 
used in a manner which increases environmental damage above 
current levels.
    The Majority voted along party lines to reject it (Roll 
Call #2).

Low-Income Home Energy Assistance (Roll Call #1)

    Whether it is families in the Northeast that heat their 
homes with fuel oil, families that use natural gas in the 
Midwest, or families using electricity in California and the 
West, nearly every family in America has experienced the shock 
of receiving a heating or cooling bill double or triple the 
amount they paid the year before. For example, residential 
heating oil prices were 48 percent higher in November 2000 than 
in November 1999, and residential natural gas prices in the 
fourth quarter of 2000 were 44 percent above the previous year.
    These extraordinary energy price hikes have hurt our senior 
citizens and low-income families the most. They already 
struggle to heat and cool theirorganizations for improvements 
to existing electric power transmission systems. The Majority voted 
along party lines to reject it.

Hydroelectric Power Improvements (Roll Call #2)

    Hydropower is a low-cost renewable resource producing no 
airborne emissions that contribute to acid rain or the 
greenhouse effect. Hydropower is the nation's leading renewable 
energy source, accounting for 81 percent of the nation's total 
renewable energy generation, and is considered to be the least 
environmentally damaging major source of power. The United 
States is one of the largest producers of hydropower in the 
world, second only to Canada. Hydropower ranges between 10 to 
12 percent of U.S. electrical generation. Without hydropower, 
the United States would have to burn an additional 126 million 
tons of coal, 25 million barrels of oil, and 452 billion cubic 
feet of natural gas annually. Simply increasing the efficiency 
of the nation's existing hydroelectric equipment by one percent 
would result in an increase in annual power generation of about 
3.3 billion kilowatt hours. A 1998 Department of Energy report 
suggests that our nation has the ability to generate up to 
4,316 megawatts of additional electric power by upgrading 
equipment at hydroelectric facilities now operating.
    There are non-Federal dams in all 50 States at 2,162 sites. 
Some non-federal owners of hydroelectric dams continue to 
operate turbines that were installed more than a century ago.
    The Army Corps of Engineers has 75 hydropower facilities 
throughout the country that account for about 24 percent of the 
hydroelectric power capacity and about 3 percent of electric 
power in the nation, making the Army Corps the 4th largest 
utility in the nation. The backlog of maintenance for these 
facilities is $400 million.
    At a recent hearing conducted by the Subcommittee on Energy 
and Water, the Chief of the Army Corps of Engineers testified 
that many of the Corps' 75 hydroelectric dam power plants have 
generating equipment that is 30 to 40 years old which is in 
need of upgrade or replacement. The Chief further testified 
that the Corps had $23.7 million of hydropower critical 
maintenance backlogs that threaten efficient power generation 
of dams in Arkansas, Georgia, Idaho, Missouri, Montana, North 
Dakota, Nebraska, Oklahoma, South Dakota, Texas, and Virginia. 
Repair and replacement of homes, put food on the table, buy 
medicines, and meet other basic necessities. Recent estimates 
show that this fiscal year low-income families will pay, on 
average, about $1,530 for annual residential energy costs or 
about 20 percent of their annual income--a burden four times 
higher than the average 5 percent of annual income paid by 
other families. Extraordinary energy bills are taking their 
toll on these vulnerable families and senior citizens.
    For years, the Low-Income Home Energy Assistance Program 
(LIHEAP) has been one of the few critical lifelines for our 
most vulnerable seniors and families to deal with energy costs. 
But with record high energy prices, it is more important now 
than ever. Nearly 80 percent of LIHEAP recipients have incomes 
at or below the federal poverty level ($17,650) and about a 
third of LIHEAP households include at least one elderly person 
in the household. Another 29 percent of LIHEAP families have a 
child age 5 years or under, and 30 percent of LIHEAP households 
have at least 1 person who is unable to work due to disability.
    Unfortunately, in recent years, we have seen the regular 
LIHEAP appropriation drop from a high of $2.1 billion in 1986 
to $1.4 billion today, The number of households that receive 
assistance under LIHEAP has declined from 7.1 million when the 
program first began--serving 36 percent of the total eligible 
population--to only 5 million today--serving only 17 percent of 
the eligible population at a time of the highest energy prices 
in recent years. Community action agencies throughout the 
nation that administer LIHEAP report having to turn away 
hundreds of eligible clients because of lack of resources. In 
all, 20 states including Wisconsin, Alabama, California, 
Georgia, Kentucky, Illinois, Iowa, Kansas, Massachusetts, 
Minnesota, New Mexico, New York and Rhode Island have exhausted 
or nearly exhausted their LIHEAP funding. And, those who are 
fortunate enough to get LIHEAP assistance receive only enough 
to pay about one quarter of their total residential energy 
bill.
    The $150 million requested by the President and the $300 
million included in this bill by the majority are grossly 
inadequate to respond to this detrimental decline in LIHEAP 
funding. If LIHEAP served the same proportion (36 percent) of 
eligible seniors and low-income families that it served twenty 
years ago at a benefit level commensurate with recent energy 
price increases, the fiscal year 2001 LIHEAP appropriation 
would need to be $4.6 billion--$2.3 billion more than the 
(regular and emergency) resourcescurrently available. The 
Democratic Amendment offered by Mrs. DeLauro would have enacted an 
immediate $600 million emergency appropriation for LIHEAP while also 
providing a $1.4 billion fiscal year 2002 appropriation for the regular 
LIHEAP block grant to ensure that energy assistance to poor families is 
not disrupted this fall in the event that the enactment of the fiscal 
year 2002 Labor-HHS-Education bill is delayed beyond the start of the 
new fiscal year. This amendment was a much more appropriate response to 
this funding shortfall than either the White House or Republican 
Leadership, but was rejected by the majority by a vote of 29:32.
    The Democratic amendment (Roll Call #1) to provide an 
additional $600 million for LIHEAP would have accomplished 
several purposes. First--it would have extended energy 
assistance to an additional 1 million low-income senior 
citizens. Second, the amendment would have provided the funds 
needed to prevent utility shut offs for thousands of families 
with unpaid bills from this past winter. Third, the amendment 
would have provided a cushion to take care of any heat 
emergencies this summer. Fourth, the amendment would have 
provided for any unforeseen energy emergencies such as the 
flooding that occurred last week in Texas and Louisiana, which 
may create an additional need for energy assistance. Fifth, by 
providing supplemental funding now, the Democratic amendment 
would have enabled states to stretch available LIHEAP resources 
by purchasing heating fuel in the summer months when it is the 
cheapest. Finally, the amendment would have provided a $1.4 
billion FY 2002 appropriation for the regular LIHEAP block 
grant, ensuring no interruption in the delivery of critical 
energy assistance to needy families this fall.
    As the energy crisis continues and more families and 
seniors go without adequate LIHEAP assistance, utility 
companies across the country are reporting huge increases in 
arrearages. Survey results from 19 states show a total of $910 
million owed in May 2001 for unpaid utility bills by 4.3 
million families. A tally for all 50 states could easily be $2 
billion or more in outstanding utility bills. For instance:
     In California, Southern California Gas experienced 
a 96 percent increase in delinquencies among its residential 
customers from February 2000 to February 2001, and arrearages 
increased from $51 million to $100 million, with over half a 
million customers in arrearage.
     Georgia reported 200,000 families owing $80 
million in arrearages and facing disconnections.
     Iowa reported 180,000 families owing more than 
$34.5 million, more than double last years amount.
     Kentucky reported $31 million in natural gas 
arrearages with 94,000 pending shutoffs.
     Michigan reported 1.3 million customers with $98 
million in arrearages.
     In New Jersey, the state's largest utility has 
sent out shut off notices to 276,000 families with arrearages 
of $271 million.
     Pennsylvania reported between 150,000 and 200,000 
families in arrears. Pennsylvania utilities report a 64 percent 
increase in people with outstanding heating bills.
     Entergy Texas reported a 41 percent increase in 
arrearages from $7.3 million to $10.3 million.
     In Wisconsin, nearly 500,000 households were in 
arrears on electric and gas utility bills, with $98 million 
owed--an increase of 38 percent over last year.
    Following these Minority Views, we have attached (1) a 
table displaying the number and percentage of eligible 
households served by LIHEAP in each state, (2) a survey 
conducted by the National Energy Assistance Directors' 
Association summarizing the funding status of LIHEAP in the 
states, and (3) information provided by the National Energy 
Assistance Directors' Association on utility arrearages in 19 
states and the District of Columbia.

                 Other Problems with this supplemental

A ``Puzzling'' Rescession: FEMA (Roll Call #1)

    This supplemental appropriations bill takes funds from 
several critical items in order to offset other funding within 
this bill. First, the bill rescinds $389 million from the 
Federal Emergency's Management Agency's Disaster Relief Fund. 
The rationale provided is that since there is close to two 
billion dollars currently in the Fund, a $389 million 
rescission will still leave enough funds to future disasters. 
The fact is, however, that these disaster assistance dollars, 
both for disaster victims and for public facilities such 
asrepair of roads and bridges, are already earmarked for previous 
disasters or for projected disasters. When these funds are needed, this 
proposed rescission could preclude prompt assistance to individuals or 
municipalities affected by a disaster. Additionally, the 
Administration, in their response to the proposed supplemental 
appropriations bill states, `` * * * we are puzzled by the proposed 
rescission of $389 million in disaster relief funds for the Federal 
Emergency Management Agency (FEMA). The rescission would eliminate much 
of the normal FEMA funding needed by the agency to provide quick and 
effective assistance to disaster-stricken communities and victims, 
should such action be requested in the future * * * '' Given the latest 
storm, Tropical Storm Allison, which is larger than the ``average'' 
disaster, this is not the time to be rescinding funds from FEMA's 
Disaster Relief Fund.

HUD

    Second, this bill rescinds $114.3 million from the 
Department of Housing and Urban Development's Housing 
Certificate Fund. At this time, $114.3 million from this 
account is not available in fiscal year 2001 and interfering 
with this fund threatens HUD's ability to assist low-income 
individuals. These recaptured funds are excess funds that are 
more than one year old. HUD officials cannot be certain that 
there will be sufficient excess funds to rescind. Because this 
rescission must come from this account only, the only option is 
for HUD to take $114.3 million from reserves. Taking funds from 
HUD reserves or having this rescission in any way affect low-
income people is unacceptable.

Job training

    The bill rescinds $359 million from FY 2002 advance 
appropriations for job training formula grants. This rescission 
is unwise, ill-timed, and damaging. It takes back funds which 
states and localities are already counting on for use during 
the job training program year beginning on July 1, 2001--just 
two weeks from now. The rescission represents and 11 percent 
cut for adult job training and a 16 percent cut in programs to 
aid workers dislocated by plant closings and mass layoffs. With 
unemployment and layoffs rising, this is exactly the wrong time 
to be cutting back on programs that assist unemployed workers 
obtain the skills training and job search assistance they need 
to find new, decent-paying jobs.
    The rationale given by the Committee for this rescission is 
that balances of unexpended funds held by state and local job 
training agencies have apparently been growing during the 
current year. However, the main reason for this growth in 
unexpended balances is delays caused by the need to revamp 
local programs and governing bodies to conform to the new 
federal authorizing law, the Workforce Investment Act, which 
took effect last July 1. There is no reason to believe that the 
need for job training services has diminished, or that programs 
will not return to their normal expenditure rates once the 
transition to the Workforce Investment Act is over. We should 
not be telling local job training agencies to overhaul their 
programs in response to new federal law, and then penalize them 
with a rescission when that transition produces some spending 
delays.

Highway Emergency Relief Funding

    The highway emergency relief program pays for the costs of 
fixing roads and bridges damaged by floods, earthquakes and 
other natural disasters. The FY 2001 Transportation 
Appropriations Act contained $720 million in emergency funding 
for this program. That funding, plus the $100 million in 
mandatory funding this program receives each year, has all been 
allocated to states to pay for previous disasters. Today, there 
is no funding available for this program and there is a $33 
million backlog of requirements from natural disasters that 
occurred this fiscal year--the earthquake in the state of 
Washington, ice storms in the states of Texas and Oklahoma, and 
a flood in Puerto Rico. Estimates are not yet available for the 
damage done from the most recent flooding in Texas. The Federal 
Highway Administration could borrow from other accounts to pay 
for these emergency needs, but the only funding not allocated 
to the states already is for the Transportation Infrastructure 
Financing credit program and only $44 million is currently 
available. It is highly unlikely that this $44 million would 
last through the end of this fiscal year. Additional emergency 
funding of at least $100 million for this program should have 
been included in this emergency supplemental appropriations 
bill. The majority erred in not properly addressing this 
emergency requirement.

Winter Olympics

    Democrats are also concerned with the Administration's and 
the Majority's failure to provide adequate security for the 
2002 Salt Lake City Winter Olympics on a timely basis. In 
August 1999, the Secret Service was given responsibility for 
designing, planning, and implementing security for the 2002 
Games. In addition, several Treasury law enforcement agencies 
will provide personnel in support of the effort. However, the 
President did not request any additional funding in fiscal year 
2002 for Treasury agencies to cover these costs. Recognizing 
this error, the Administration subsequently requested an 
additional $60.6 million as part of the supplemental funding 
request, but the Majority chose not to include the required 
funding in this bill. Given the unrealistic allocations 
required by the Majority's budget resolution, it is not clear 
if and how this requirement can be accommodated in the fiscal 
year 2002 bill. Effective security is key to a successful 
Olympics, and the Majority needs to ensure that sufficient 
funding is available for Treasury law enforcement agencies. It 
was a mistake not to provide funding for Winter Olympics in 
this bill.

                               conclusion

    It is a shame that this emergency supplemental 
appropriations bill contains nothing of substance to address 
the immediate needs of American citizens who face a national 
energy crisis according to the President. The citizens in 
Western States will endure more hardship as the summer unfolds. 
Democrats offer national initiatives for real near-term 
solutions that could be implemented quickly on a bipartisan 
basis. It is unfortunate that Republicans reject such 
proposals, and instead have produced this supplemental 
appropriations bill that fails to respond to the national 
energy crisis in any meaningful way.

                                    LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM
                          [Estimated number and percent of households served, FY 2001]
----------------------------------------------------------------------------------------------------------------
                                               Households served    Households not served    Elderly not served
                   State                    --------------------------------------------------------------------
                                                Number     Percent     Number     Percent     Number     Percent
----------------------------------------------------------------------------------------------------------------
Alabama*...................................       41,468       8.3      460,343      91.7      197,197      42.8
Alaska.....................................        7,500      13.4       48,271      86.6        8,740      18.1
Arizona....................................       25,000       5.5      433,425      94.5      149,349      34.5
Arkansas...................................       70,000      22.6      239,354      77.4      109,530      45.8
California*................................      123,280       3.4    3,466,979      96.6    1,129,586      32.6
Colorado*..................................       75,000      21.9      267,962      78.1       87,355      32.6
Connecticut................................       68,000      16.6      342,270      83.4      158,525      46.3
Delaware...................................       11,000      14.4       65,591      85.6       32,213      49.1
District of Columbia*......................       15,000      21.0       56,562      79.0       24,077      42.6
Florida....................................       42,500       2.6    1,583,788      97.4      726,918      45.9
Georgia*...................................      120,000      15.2      666,893      84.8      190,696      28.6
Hawaii.....................................        5,300       4.2      121,891      95.8       48,041      39.4
Idaho......................................       30,930      26.0       88,089      74.0       31,341      35.6
Illinois*..................................      350,000      27.9      903,643      72.1      518,146      57.3
Indiana....................................      121,370      21.1      454,085      78.9      229,338      50.5
Iowa*......................................       80,000      28.9      196,391      71.1       80,817      41.2
Kansas*....................................       25,000       9.2      247,736      90.8      108,081      43.6
Kentucky*..................................      209,748      49.9      210,262      50.1      148,569      70.7
Louisiana..................................       92,100      18.6      403,885      81.4      183,634      45.5
Maine*.....................................       58,000      48.3       62,079      51.7       33,913      54.6
Maryland*..................................       70,000      14.5      411,806      85.5      192,534      46.8
Massachusetts*.............................      123,000      16.3      632,770      83.7          n/a       n/a
Michigan...................................      362,000      34.7      680,702      65.3      298,029      43.8
Minnesota*.................................      107,000      23.6      346,129      76.4      163,569      47.3
Mississippi................................       39,750      11.9      295,084      88.1      102,676      34.8
Missouri...................................      110,198      20.2      435,361      79.8      187,986      43.2
Montana*...................................       17,500      18.1       79,340      81.9       24,600      31.0
Nebraska*..................................       25,500      14.5      150,542      85.5       74,936      49.8
Nevada.....................................        8,700       5.3      156,313      94.7       57,679      36.9
New Hampshire*.............................       27,500      23.7       88,777      76.3       47,405      53.4
New Jersey.................................      150,000      16.6      754,349      83.4      391,625      51.9
New Mexico*................................       48,000      25.5      140,568      74.5       51,558      36.7
New York*..................................      818,000      35.1    1,513,183      64.9      724,283      47.9
North Carolina.............................      151,000      17.7      702,356      82.3      292,147      41.6
North Dakota...............................       14,000      18.5       61,632      81.5       27,714      45.0
Ohio.......................................      224,700      18.1    1,014,102      81.9      421,052      41.5
Oklahoma...................................       86,000      24.4      266,521      75.6      105,912      39.7
Oregon.....................................       88,547      27.1      238,533      72.9       77,856      32.6
Pennsylvania...............................      280,750      20.5    1,086,783      79.5      558,902      51.4
Rhode Island*..............................       26,000      20.3      101,855      79.7       67,565      66.3
South Carolina.............................       64,755      15.1      362,711      84.9      140,244      38.7
South Dakota...............................       15,000      20.5       58,316      79.5       23,202      39.8
Tennessee..................................       95,630      15.7      511,809      84.3      179,386      35.0
Texas......................................       53,459       2.5    2,050,915      97.5      690,490      33.7
Utah*......................................       30,000      21.9      106,844      78.1       32,988      30.9
Vermont....................................       23,900      39.2       37,079      60.8       19,723      53.2
Virginia...................................       83,518      12.8      571,146      87.2      227,810      39.9
Washington.................................       75,000      14.6      438,476      85.4      130,032      29.7
West Virginia..............................       55,000      23.2      182,397      76.8       90,696      49.7
Wisconsin*.................................      110,100      22.5      378,737      77.5      176,561      46.6
Wyoming....................................       10,000      19.5       41,395      80.5       18,258      44.1
                                            --------------------------------------------------------------------
      Total................................    4,965,703      17.0   24,216,030      83.0    9,793,484      40.4
----------------------------------------------------------------------------------------------------------------
* These states have depleted or nearly depleted their FY 2001 LIHEAP allocations, according to the National
  Energy Assistance Directors' Association.

* Source: National Energy Assistance Directors' Association estimates, based on data collected by the Department
  of Health and Human Service.

 National Energy Assistance Directors' Association State-by-State Low-
 Income Home Energy Assistance Program Survey Responses (June 11, 2001)

    Note: The following provides a state-by-state summary of 
available information on the status of each state's Low-Income 
Home Energy Assistance Program (LIHEAP). As of June 11, 43 
states and the District of Columbia have responded to the 
survey. This survey will be updated as additional information 
becomes available.

                               key points

     Of the states that have responded to date to the 
NEADA summer survey, 19 states and the District of Columbia 
reported that they were either out of funds or had very low 
balances. States reporting they were out of funds: District of 
Columbia, Iowa, Maine, Minnesota, Montana, New Hampshire, New 
Mexico, Rhode Island, and Wisconsin. States reporting very low 
balances: Alabama, Colorado, Georgia, Illinois, Kansas, 
Kentucky, Maryland, Massachusetts, Nebraska, New York, and 
Utah.
     The remaining 24 states have at least the same 
amount of funds available to help low-income families as they 
had last year at this time: Alaska, Arizona, Arkansas, 
California, Connecticut, Delaware, Florida, Hawaii, Idaho, 
Indiana, Michigan, New Jersey, Nevada, North Dakota, Ohio, 
Oklahoma, Oregon, South Carolina, South Dakota, Vermont, 
Virginia, Washington, West Virginia and Wyoming.
    The NEADA survey follows two earlier surveys this year. The 
first survey reported that the number of new families applying 
for program assistance had increased by more than 1 million, 
bringing the total of recipient families up to more than 5 
million. The second survey, reported that 4.3 million 
households in 19 states and the District of Columbia were in 
arrears on their utility bills and faced possible shut-off of 
service. Summary tables from the two surveys are included at 
the end of the narrative.
    The federal Low-Income Home Energy Assistance Program 
(LIHEAP) provides heating and cooling assistance to low-income 
families. During the current fiscal year (October 1, 2001 to 
September 30, 2002) the program is expected to provide 
assistance to at least 5.1 million households, an increase of 
1.1 million over last year. Due to the rapid increase in demand 
for program services, many state program managers responded by 
spending most, if not all, of their program funds. In contrast 
to previous years, states retained fewer funds in order to 
address the immediate needs of low-income applicant households.

Alabama

    Alabama's LIHEAP program has about $2-3 million remaining 
this year, which is less than last year as a result of the 
worst winter weather for many years and increases in fuel 
prices. All remaining funds will be expended for cooling 
assistance. The state has always had a cooling program, but 
there are less funds available this year. It is estimated an 
additional $5-6 million is needed for summer cooling, 
especially if the state experiences a severe summer.

Alaska

    Alaska has about 9% of its funding left, which is the same 
as last year, in spite of an unusually warm winter this year. 
Although there are no winter shut-off moratoria, the state does 
help with arrearage payments and shut-off avoidance throughout 
the winter as part of the regular heating assistance program. 
There is no summer cooling program.

Arizona

    Arizona runs a year-round program for heating and cooling 
and the supplemental contingency dollars received this fiscal 
year will be added into contracts effective July 1, 2001. These 
funds will be helpful in providing either/or higher benefit 
payments and serving more households. Arizona is a hot weather 
state and summer has arrived early this year, with triple 
digits in early May. As a result, more households are expected 
to apply and higher benefits will be needed to offset increases 
in utility rates.

Arkansas

    Arkansas has $1.1 million remaining as of June 1, 2001, 
compared to $558,800 at this time last year. No cooling 
assistance program has been planned for the summer. Unless 
additional funds are released, Arkansas most likely will not 
have a summer cooling program. The state will use all of the 
remaining funds to avoid shut-offs, for connection/reconnection 
fees and on arrearages, if they are creating a crisis situation 
for the household. Approximately $1.2 million is needed to 
implement an adequate cooling program. Because of the harsh 
winter in Arkansas this year, many families are still trying to 
pay large arrearages on both gas and electricity bills in 
addition to their current bills.

California

    California has about $900,000 left to provide shut-off and 
arrearage repayment assistance. The state is also disbursing 
about $30 million dollars from June 1-August 31st for cooling 
assistance and has appropriated $120 million dollars to provide 
supplemental funding as a result of higher prices due to the 
state's energy crisis.

Colorado

    Colorado's caseload increased significantly this year and 
there are still 1,000 applications to be processed that were 
received before the program ended on April 30th. The current $1 
million balance had been targeted as carryover for the start-up 
costs of next year's program, but will instead be used to fund 
the remaining applications (at a cost of approximately 
$150,000) and continue the year-round furnace repair and summer 
fan distribution programs. The summer Crisis Intervention 
Program (estimated to cost $200,000) and the summer fan 
distribution program (estimated to cost $50,000) may be 
discontinued for lack of funding and it appears very likely 
there won't be any start up money for next season. By 
comparison, last year at this time there was $2.5 million 
remaining after most cases had been processed.

Connecticut

    Connecticut operates only a heating assistance program and 
anticipates approximately $4 million of this year's funding 
will be carried forward for start-up of next year's program. No 
cooling assistance program is planned, but one will be provided 
if weather conditions warrant it and funds are available early 
in the season.

Delaware

    Delaware will have approximately $110,000 of unrestricted 
funds remaining at the end of June, compared to $0 last year at 
this time. The state has set aside $1.1 million for the Summer 
Cooling Assistance Program this year, compared to $600,000 set 
aside last summer. Although no funds were earmarked for 
arrearages last year, the $110,000 balance this year may be 
utilized for that purpose. Due to a moratorium from the Public 
Service Commission that prohibited the state's largest electric 
and gas utility from terminating a customer's utility services 
for about 16 months, many households are now faced with 
arrearages in the thousands of dollars. Specific numbers of 
households that may be eligible are not available, but the 
$110,000 remaining at this time would only help approximately 
366 households if they each receive a benefit of $300. Delaware 
is considering avoiding paying any arrearages if not enough 
households can benefit from the $110,000 and using the funds 
instead to purchase and install new furnaces under the 
weatherization program. Or the state may provide assistance to 
the most severe cases of arrearages and help about 110 
households at $1,000 each. If Energy Emergency Contingency 
Funds are released this summer, they will primarily be used to 
help low-income customers with arrearages who are facing 
service terminations.

District of Columbia

    The District of Columbia operates a 12 month program but 
ran out of funds at the end of April. There is a the District 
might be able to use some local TANF funds to provide 
supplemental cooling assistance this summer.

Florida

    By the end of June, Florida's LIHEAP program will have 
expended all the winter contingency funds. As a result of the 
increase in base funding this year, there is approximately $1 
million (18%) more that will be available for summer cooling 
assistance than was expended last year. Typically, the state is 
able to provide cooling assistance to less than 5% of the 
eligible population. With the increase in base funding this 
year the summer cooling program will be able to assist 1-2% 
more of these eligible households. At this time, there does not 
appear to be a problem with a backlog of arrearages.

Georgia

    Any remaining LIHEAP funds in Georgia at the close of the 
regular program will be used for cooling assistance. Last year 
a total of $5.4 million was expended for cooling assistance, 
and this year the current balance available is only $2.1 
million as of May 7, 2001. All of these remaining funds will be 
used for cooling assistance. However, at a maximum of $194 per 
household, only 10,644 households will be able to receive 
cooling assistance. Based on last year's expenditure data, an 
additional $1 million is needed for summer cooling. Sufficient 
funds are also not available to meet the needs for arrearage/
shut-off avoidance assistance. In order to provide arrearage/
shut-off avoidance assistance, an additional $3.7 million is 
needed, since there are 200,000 households in Georgia who owe 
approximately $80 million in natural gas bills alone.

Hawaii

    Hawaii's program does not begin until June 1.

Idaho

    Idaho has a current balance of $2.9 million as compared to 
$1.3 million last year at this time. None of the remaining 
dollars are targeted for cooling assistance or arrearage/shut-
off prevention programs at this time.

Illinois

    Only $5 million remains in the Illinois LIHEAP program this 
year, compared to $17 million last year. This $5 million 
balance will be used for summer energy assistance (last year's 
effort expended $10 million). The state committed $6 million 
this year for arrearage and shut-off prevention programs 
(compared to $2 million last year). The Illinois program 
estimates it needs $15-20 million for a statewide summer 
program and $10-15 million for arrearage/shut-off avoidance 
assistance.

Indiana

    The State of Indiana has a little less than $2 million 
dollars remaining in the Energy Assistance budget (which 
includes LIHEAP & oil overcharge funds). These funds (about the 
same amount as last year) will all be used for summer cooling 
and summer fill. Funds have not been set aside for arrearage 
assistance this year, nor have they been in the past. The state 
is concerned about meeting the needs out of next year's 
funding, when it is anticipated many households will be coming 
in with high amounts in arrears.

Iowa

    Iowa has exhausted all funds available. Approximately 
79,000 households received a benefit that lowered their out-of-
pocket expense (energy burden) to 6% of total household income. 
There are still approximately 5,000 eligible households that 
applied, but who, in the absence of supplemental funding, will 
not receive any benefit. Last year at this time, 62,000 
households had received a benefit that lowered their out-of-
pocket expense (energy burden) to 3.5% of total household 
income and there was a balance of approximately $2 million 
unexpended that was available for cooling emergencies if 
necessary. Ultimately, those funds were used for contracting 
with deliverable fuel vendors, locking in a lower price in 
August for delivery beginning in October. Unfortunately, this 
will not be an option this year. If the remaining 5,000 
households are to receive the average benefit that the 79,000 
households received, an additional $2.8 million is needed. In 
the interim between now and the receipt of any supplemental 
funding, those 5,000 households will have no alternative other 
than to make payment arrangements that include the hoped-for 
LIHEAP benefit.

Kansas

    By March 12th it was determined that applications for 
LIHEAP benefits were exceeding the 18.6% increase originally 
anticipated for the federal funds available. As a result, 
central office instructed field staff to pay only eligible 
households meeting the newly defined emergency criteria of: (1) 
disconnected, (2) out of fuel, or (3) tagged for disconnect 
(only households that were not regulated under the shut off 
moratorium, which had been extended to April 30th). LIHEAP 
benefits were paid out at 100% of the determined benefit matrix 
for a portion of the LIHEAP program. Since the amount of 
funding available was not sufficient to provide benefits at the 
100% amount to all eligible households, the remaining eligible 
households were paid at a prorated portion of the original 
benefit matrix amount (47%). If the decision had not been made 
to pay prorated benefits, approximately 7,000 eligible 
households would not have received any type of energy 
assistance in a winter in which fuel costs escalated and the 
temperatures were extremely cold. The prorated benefit method 
was chosen in order to provide all eligible households as much 
of a benefit as possible with the remaining federal funds 
available. If additional funds become available the agency will 
further supplement benefits to those households that received 
only a prorated amount.

Kentucky

    Kentucky only has $100,000-$150,000 of LIEHAP funding 
remaining. Approximately $7 million is needed to operate a 
cooling program. Already, early in the season, areas of the 
state have been experiencing temperatures in the high 80's with 
high humidity. In addition, nearly \3/4\ of the state has been 
declared to be in a severe drought.

Maine

    All of Maine's LIHEAP funds have been obligated and there 
will not be any carryover over for next year. There are no 
funds available for summer cooling or arrearage and shut off 
avoidance programs, which is the same situation the state 
experienced last year.

Maryland

    Maryland has less than $1 million remaining. These funds 
will be used for furnace repair and replacements. The state 
does not have any funds available for cooling assistance.

Massachusetts

    Massachusetts will deplete all federal funds with a 
possibility of having up to $1 million left for carryover to 
next fiscal year. There will be no funds available for cooling 
assistance.

Michigan

    Michigan does not expect to have any funds left at the end 
of the program year. Of major concern is that the program will 
need to revert to FY 2001 program limits because of reduced 
funding in FY 2002 (unless funding is increased to include all 
amounts awarded as supplemental appropriations in FY 2001). 
This means the program will not be able to increase eligibility 
to higher levels of poverty, nor sustain CAPS (rates paid for 
energy), despite the fact that customer expenses are 
increasing. Additionally weatherization efforts could not 
continue at the same level, thereby exacerbating the long-term 
energy consumption problem.

Minnesota

    Applications are up 34.6% over last year at this time and 
the benefit level is 34.7% larger to address higher energy 
costs. All funds have been exhausted and new applicants are 
being turned away, even though the plan states that 
applications will be taken until June 1, 2001. Last year there 
were sufficient funds to serve all who applied and an 
additional $4 million to carryover from FY 2000 to FY 2001. 
Minnesota has not traditionally offered cooling assistance. The 
FY 2001 state plan states that a medically necessary cooling 
program will be operated if funds are available, but it does 
not appear funds will be available for this purpose.
    The state's crisis program, which addresses disconnections 
and emergency fuel deliveries, has increased this year by 
almost 400% over the previous year. The Public Utilities 
Commission estimates that total customer arrearages are $71 
million. There are not sufficient funds to address those 
households who are still seeking assistance because of pending 
disconnects. Last year the program was able to assist all 
eligible households who applied. The PUC also indicates there 
are a minimum of 1,000 households statewide who have medical 
needs for cooling who may be income eligible for LIHEAP. An 
additional $300,000 would be needed to provide each of these 
households a benefit of $300. To serve all the applications 
currently pending would require an additional $1.9 million. 
Another $3 million in requests for crisis assistance are 
expected by June 1.
    The Minnesota Department of Revenue mailed applications to 
80,000 senior households early in April, and those applications 
are just coming in now. Last year a similar mailing resulted in 
a 12% return. If a similar return is experienced this year, an 
additional $5.4 million will be needed to serve these 
households with the average grant of $558. In previous years 
carryover funds were used to pre-buy propane and/or oil for the 
next heating season. Summer purchases have greatly benefited 
low-income households, providing them with more fuel for their 
money. In past years, the average early pre-buy program has 
purchased $2.3 million in delivered fuels. Unfortunately, there 
are not sufficient funds to pursue this activity this year. The 
total amount Minnesota needs for the remainder of this program 
year is approximately $12.8 million in additional funds.

Montana

    Montana has no remaining funds from the regular and 
emergency appropriations this year, compared to a $400,000 
balance last year. The state has not been able to offer summer 
cooling assistance or assistance with arrearages.

Nebraska

    Nebraska has approximately $670,000 that has not been 
designated for client payments, weatherization, administration 
or FY 2002 carryover. Approximately $1.7 million that was 
designated for FY 2002 carryover can still be used in the 
current year. These amounts are less than the balances last 
year by about $1 million. Approximately $350,000 will be 
expended in the original cooling payment and then as other 
households qualify for cooling, the additional payments will 
increase. This initial payment is about the same as last year. 
During the summer months about $75,000-$100,000 a week has been 
expended for additional cooling and cooling crisis payments. 
Unless additional funds are received, Nebraska will not be able 
to help with any additional heating arrearages or shut-off 
notices. Clients are being advised to make payments over the 
summer and heating crisis assistance will be available next 
winter, as in the past. An additional $2 million would allow 
the state to avert more heating shut-offs.

Nevada

    Although funding for Nevada's LIHEAP program increased by 
15% in FY 2001, expenditures were up 22% compared to FY 2000, a 
shortfall of approximately 7% for FY 2001. This summer cooling 
assistance will be available statewide instead of only in the 
southern part of the state, at a total expected cost of 
$724,711 (up from $457,284). Due to limited federal funding in 
Nevada, the program was not designed to pay off arrearages, but 
eligible households can avoid shut-off by paying a portion of 
the outstanding balance. FY 2001 funding will be used to start 
up the 2002 LIHEAP Program effective July 1, 2001, which will 
run through May 31, 2002 (11 months). It is estimated 42% of 
the funding used will be used to assist households, statewide, 
with cooling costs. This is a new component. FY 2000 funding 
was not delineated for specific cooling needs. Only households 
in southern Nevada had their regular LIHEAP benefit split 
between their heating provider and their cooling provider. 
Approximately 55% of the households receiving LIHEAP benefits 
live in the southern part of the state where temperatures are 
easily above 100 degrees during the summer.
    Approximately 146,000 households in Nevada are below 150% 
of the poverty level. Natural gas prices have increased 68% 
statewide, and electric costs, thus far, have climbed 
approximately 14%. However, incremental electric increases up 
to 45% have been presented to the PUC and are likely to be 
approved. Propane has increased 75%. Nevada increased the 
benefits for clients using these three major fuel sources, 
retroactively. The average benefit will be $304 once these 
retroactive supplemental payments are made (within the next 30 
days). As such, if Nevada receives the same funding in FY 2002 
as was received in FY 2001, the LIHEAP program will only be 
able to serve 7,988 households. This represents only 5% of the 
state's low-income households at 150% of poverty. Experts have 
presented data to the Nevada Legislature projecting the average 
monthly summer electric bill in southern Nevada will be $275 by 
next year. LIHEAP pays a one-time average benefit of $304 per 
year. Low-income households, particularly those on fixed 
incomes such as the elderly and disabled, will be unable to pay 
such high cooling costs. As it is now, these people must make 
choices between medicine, food, or power.

New Hampshire

    New Hampshire reports that all combined emergency/regular 
appropriations for FY 2001 have been obligated. Any remaining 
funds will be used to restore monies originally targeted for 
the state's weatherization program. The increased demand for 
assistance this winter season (18% increase in the number of 
households enrolled) caused the state to suspend other fuel 
assistance program components including the Summer Pre-buy 
program. At this point, sufficient funds do not exist to fully 
restore the two programs for this program year. Last year at 
this time approximately $409,185 had not been obligated. A 
cooling assistance program is not a regular component of New 
Hampshire's LIHEAP program.
    At this point, the state is not in a position to further 
address the need to assist with arrearage payments and shut-off 
avoidance. Due to the demand for assistance and available 
LIHEAP funding, the program could not be extended beyond April 
30th this year. Last year, the program was open for an 
additional month (to May 21, 2000). Although an analysis has 
not yet been completed on the amount of funds necessary to 
assist with arrearage/shut-off avoidance, the largest utility 
in the state has reported that as of March 30, 2001 the amount 
of residential accounts receivable had increased by 84% over 
last year (approximately $2.2 million).

New Jersey

    New Jersey has not exhausted its FY 2001 funding. Although 
New Jersey raised its income limit to 175% of the federal 
poverty level and extended its application period, the state 
did not receive as many applications as anticipated. Remaining 
funds (up to 10% of total funds) will be transferred to the 
Weatherization Assistance Program after all outstanding 
applications for assistance are processed.

New Mexico

    New Mexico has no remaining LIHEAP funding. The program has 
remained open with money received from the State. Even with the 
supplemental benefits that were issued, there are daily reports 
of households losing service or unable to purchase propane. The 
average benefit this year is $250, whereas the average benefit 
in FY 2000 was $118.

New York

    As of May 25th, New York estimates a LIHEAP funding balance 
of only $23 million, which includes funds carried forward from 
FY 2000 to FY 2001. Last year at this time the balance was $35 
million. No cooling assistance is provided, nor does the state 
set aside funds for arrearage payments and shut-off avoidance. 
Crisis funds are still available to avert shut-offs through the 
HEAP emergency component.

North Dakota

    After meeting all commitments (including weatherization and 
other services), North Dakota will have about $2.5 million 
remaining. There is no ``cooling program'' as such, but the 
program does purchase air conditioners for people with a 
medical need, at a total cost of approximately $200,000. 
Expenditures in the emergency (crisis) program have been 84% 
higher this year than last.

Ohio

    Ohio's LIHEAP program will expend about $5 million on 
cooling assistance this year, which is the same as last year. A 
supplemental heating assistance benefit will be provided to 
everyone assisted in FY 2001 with the remainder of the 
uncommitted funds (estimated to be around $20 million). Because 
so many households had such high natural gas bills this winter 
(and 75% of the households assisted use natural gas), this 
additional benefit will lessen the chances of these households 
facing a shut-off during the summer. This additional benefit 
was not provided in FY 2000. The contingency funds provided 
benefits to an additional 50,000 households this year, who will 
have to be turned away and/or benefit/eligibility levels 
reduced if funding in FY 2002 is not at the same level as FY 
2001.

Oklahoma

    In addition to the $16.2 million Oklahoma received in 
LIHEAP funds this year, $11.5 million was transferred into the 
program from TANF, and $4.8 million was received from the 
state. The estimated balance remaining, after excluding the 
$1.5 million set aside for crisis assistance and summer 
cooling, is only $3.7 million.

Oregon

    Oregon has expended about 80% of the total funding 
received. If the additional contingency funds had not been 
allocated to the state this year, the program would have been 
fully expended by the beginning of January. The remaining 
funding will probably be targeted for weatherization assistance 
and pre-purchases of oil and bulk propane. Additionally, some 
cooling assistance may be provided in the eastern part of the 
state or in the metro area where more households reside in 
apartments.

Rhode Island

    For the most part, Rhode Island's program is currently out 
of funds that were allocated for fuel bills. Last year the 
program was able to stay open for most of the summer to help 
out with shut-offs. It does not appear there will be funds 
available for cooling or summer crisis, although $3-4 million 
is needed.

South Carolina

    South Carolina has approximately $779,308 remaining from 
this year's combined emergency fund/regular appropriations, 
compared to $259,400 last year. An estimated $3,024,995 will be 
used for cooling assistance, compared to $1.3 million last 
year. Although the maximum benefit was raised from $250 to $800 
this year, there are still a large number of households in 
arrearage. The largest utility company in the state is 
averaging 37,000 arrearages a month. Given the maximum benefit 
of $800, an additional $1 million is needed to provide 
assistance to alleviate these arrearages.

South Dakota

    South Dakota has less than 10% of the funds received this 
year remaining, which is about the same as last year. No summer 
cooling assistance is available, and, although the state is 
getting reports of very large arrearages, there are no funds 
available to help families deal with their balances or prevent 
shut-offs.

Utah

    Utah has set aside $500,000 for cooling and crisis 
assistance this year, compared to $650,000 last year. The state 
provides cooling assistance only as part of the crisis program. 
It is anticipated the need in FY 2002 will exceed that 
experienced this year. Funds may have to be taken out of the 
10% carryover set aside for next year to supplement crisis/
cooling assistance through the summer.

Vermont

    In Vermont out of $14.5 million received in FY 2001 (block 
grant, contingency grants, carry forward, leveraging incentive, 
and reallotment funds) only $490,000 has not been allocated 
(3%). Last year at this time, out of $11.4 million, $685,000 
had not been allocated (or 6%). None of the remaining funds are 
targeted for cooling assistance or arrearage payments and shut-
off avoidance. Last year, $200,000 was allocated for spring, 
summer, and fall emergency assistance (heat and electric 
service disconnections--but not cooling assistance). Vermont 
does not anticipate a similar allocation will be available this 
year.

Virginia

    Virginia has approximately $3 million remaining from its 
combined emergency fund/regular appropriations for FY 2001, 
which is the same as last year. Also, as last year, this entire 
amount will be targeted for summer cooling assistance. Based on 
applications received last year through the cooling assistance 
program, this amount is not sufficient to meet the need. 
Virginia would need an additional $2.1 million to serve the 
number of applicants from last year. The state does not have a 
program that specifically targets clients with arrearages and/
or cutoffs because the current appropriation does not provide 
sufficient funds to initiate a new targeted type of assistance. 
However, due to the tremendous increases in fuel costs during 
the past winter many citizens experienced severe hardship in 
making payments and are now threatened with shut-off and have 
huge arrearages. In assessing the need for additional 
assistance for both utilities and deliverable fuels, the state 
estimates a need for an additional $5.6 million, based on the 
1999-00 fuel case count plus the 2000-01 crisis case count.

Washington

    Washington anticipates serving 25% of the eligible 
households this year, which leaves 75% unserved. If the federal 
appropriation for FY 2002 is only $1.4 billion, the state will 
only be able to serve about 19% of the eligible population.

West Virginia

    West Virginia estimates a current unencumbered LIHEAP 
balance of $2.5 million. None of the remaining funds is 
earmarked for cooling or arrearage/shut-off avoidance. However, 
a supplemental payment to LIHEAP households that contain a 
person age 60 or older may be used for heating arrearages or to 
offset anticipated cooling costs. A minimum of $1 million is 
needed for cooling assistance.
    West Virginia utilizes an automated benefit issuance/
eligibility determination system called RAPIDS. Cost 
allocations for workers to enter applications into the system 
mount up quickly, making it necessary to keep the LIHEAP season 
short. No state funds are used for LIHEAP at this time. 
Additional funds are needed to help the state's most vulnerable 
households.

Wisconsin

    Wisconsin has depleted all LIHEAP funds available, in 
contrast to last year when there was over $4 million left to 
use for summer fills, arrearages, etc. in preparation for the 
next heating season. There are no funds available for cooling 
assistance this summer, and the state will only be able to 
operate a cooling program if supplemental funds are awarded for 
this purpose and if there is a heat emergency declared in the 
state. Although the state intended to provide a supplemental 
allocation to local agencies for crisis assistance, it has not 
been able to do so because of the costs for the basic heating 
assistance payments. Based on current federal funding levels 
(the President's budget) the state will receive $31 million 
less for the next heating season than was received through 
regular and supplemental appropriations this year. Even if the 
level proposed by the Senate were adopted, Wisconsin would 
still receive $11 million less that was awarded this year. 
Caseloads for the regular heating assistance program are up 
over 30% in numbers of paid households and up 70% in the dollar 
amount of heating assistance paid. The amount of crisis funds 
available to local agencies has also been increased by over 
200%. For the first time the state provided $14 million of 
utility public benefits dollars, which was used primarily for 
electric benefits.

Wyoming

    Although Wyoming currently has a remaining LIHEAP balance 
of about $1.2 million left, these funds will be used for 
additional benefits and administrative costs. There is no 
summer cooling assistance program and the crisis portion of the 
regular program concluded on May 15th. Although sufficient 
funds were available for this year, the need is increasing 
rapidly with higher fuel costs, which will result in higher 
numbers and amounts of arrearages next year.

 Table 1: State Listing of Shut-Off and Arrearage Information (May 14, 
                                 2001)

    Arrearage and shut-off data is currently being collected by 
NEADA. As of May 14, 19 states and the District of Columbia 
reported arrearages totaling almost $910 million owed by 4.3 
million families. The following is a brief state-by-state 
summary of those states providing arrearage and shut-off data. 
For further information about this survey contact:
    California: Southern California Gas has experienced a 96% 
increase in delinquencies among its residential customers from 
February 2000 to February 2001 increasing from 369,000 
delinquent customers to 723,000 within that period. During the 
same period, arrearages for Southern California Edison 
increased from $51 million to $100 million, while the number of 
customers in arrearage increased from 431,182 to 567,256.
    Connecticut: Under the state's moratorium, Connecticut 
Natural Gas reported 12,994 families as compared to 10,378 last 
year; United Illuminating reported 12,000 families (of which 
7,000 are delinquent and could be terminated between April 16th 
and May 16th, depending on the billing cycle); and Connecticut 
Light and Power reported 25,950 households. The number of 
delinquents may also drop as customers make payments/
arrangements when faced with the prospect of having their 
service disconnected.
    District of Columbia: Washington Gas reported that 14,694 
residential customers who were at least 60 days in arrears owed 
approximately $6.6 million. Of that total 5,229 have received 
shut-off notices and were mailed a special letter urging 
immediate action to avoid shut-off.
    Georgia: Approximately 200,000 families owe about $80 
million in arrearages. These families could potentially lose 
their gas service beginning April 1st when the moratorium is 
lifted.
    Indiana: The moratorium on shut-offs will expire on April 
1st. Arrearages are estimated to have increased to $30.5 
million from $14.4 million. Approximately 50,000 families could 
be at risk of shut-off.
    Iowa: The state has reported there are 180,000 families 
with more than $34.5 million in arrearages, more than double 
last year's amount. The state PUC has extended the moratorium 
until May 1st.
    Kansas: Kansas Gas Service reported that 27,000 of their 
customers are in arrears, with average amounts that are two to 
three times larger than normal due to the increased costs of 
utilities. Last week, the Kansas PUC extended the moratorium on 
natural gas and electric service disconnections through May 
31st.
    Kentucky: Natural gas arrearages total $30.9 million with 
94,010 pending shutoffs.
    Louisiana: Entergy, the state's utility serving the New 
Orleans area, reported $32.9 million in arrearages, up from $14 
million last year. The average amount in arrears this year is 
$400 vs. $267 last year. The total number of residential 
families with arrearages totals about 76,000 accounts.
    Michigan: Utilities serving 5.7 million customers reported 
that 1.3 million of its customers have generated arrearages 
totaling almost $98 million.
    Minnesota: Arrearages for electric and natural gas total 
approximately $71.6 million. The average residential arrearage 
increased from $168 last year to $267 during the current year. 
As many as 100,000 families currently are past due on their 
accounts and could be disconnected after April 15th and the 
expiration of the Cold Weather Rule.
    Mississippi: Entergy Mississippi residential arrearages are 
projected to increase by 36% from $5.6 million to $7.6 million.
    Missouri: The state's two largest natural gas companies 
have had a self-imposed moratorium on shut-offs that expired 
March 15th. The current arrearage amount is approximately $6.3 
million and the estimated number of families to be shut-off 
within 30 days, if bills are not paid, is 13,091.
    New Jersey: Public Service Electric and Gas, the state's 
largest utility, reported residential arrearages of $271 
million, an increase of 14% over last year. Shut-off notices 
have been sent to 276,715 families, an increase of 6% over the 
same period last year.
    Pennsylvania: Between 150,000 and 250,000 families in 
arrears and are expected to begin receiving shut-off notices.
    South Carolina: Arrearages have increased by 30% from last 
year, totaling $13.5 million. Almost 37,000 families are facing 
shut-offs.
    Texas: Entergy Texas has reported an increase of 41% in 
arrearages from $7.3 million to $10.3 million.
    Virginia: Columbia Gas reports a $12 million arrearage this 
year as opposed to $2 million last year. Dominion Virginia 
Power, the largest electricity supplier, is reporting a 33% 
increase in arrears over last year. Approximately 20,000 
customers will receive shut-off notices once the voluntary 
moratorium is lifted.
    West Virginia: American Electric Power has reported that 
55,000 of their 367,764 residential customers owe about $5.5 
million in arrears. The average arrearage is $106. Shut-off 
notices are currently being mailed.
    Wisconsin: Total electric and gas arrearages increased by 
almost 38%, from $71.0 million to $97.7 million. The average 
amount in arrears increased by about 23%, from $206 to $167, 
while the number of households in arrears increased by almost 
12 percent, from 424,607 customers to 473,989 customers.

                                                        David Obey.

                  ADDITIONAL VIEWS OF HON. NORM DICKS

    Despite the best efforts of the Chairman, Ranking Member, 
and other members of the Defense Subcommittee, the defense 
section of this bill is simply not up to the task of providing 
for the glaring shortfalls in funding at the Department of 
Defense. The Committee has made several appropriate adjustments 
to the Administration's request for funding for DOD, including 
providing $39.9 million for repair of natural disaster damages 
at military facilities, and adding $200 million for health care 
at military treatment facilities. However, the Committee was 
hobbled by an Administration request that was substantially 
under funded give the Department's need, and a threat by the 
Administration to veto any bill which provided for the 
Department's full requirements.
    It is my view that despite the Administration's veto 
threat, the Committee should have increased funding for DOD by 
at least $3 billion in emergency funding. In February, I and 
several other Democratic members of the Appropriations, Armed 
Services, and other House committees introduced a Defense 
Supplemental of $6.7 billion. That bill was based on the 
testimony of the chiefs of each of the military services, and 
contained $2 billion in funding for shortfalls in readiness 
accounts not included in the Administration's request 
transmitted to Congress. These shortfalls not addressed by the 
Administration include $558 million for spare parts, $334.5 
million in pay and Basic Allowance for Housing (BAH) 
requirements, $254 million for force protection programs, $157 
million for aircraft and ship depot maintenance, and $150 
million for recruiting and retention, among many others. 
Although the Administration's request contained about $1 
billion in funding for shortfall not covered in our 
supplemental, including many requests for research and 
development and procurement funding, the Administration's 
request is still over $1 billion short of our bill in total, 
and the need for funding has only increased in the time since 
the chiefs of the four military services testified before 
Congress in January of 2001.
    The Administration has provided no credible explanation for 
its neglect of $2 billion in shortfalls in core readiness 
accounts. And more recent information on FY01 shortfalls at DOD 
have convinced me that each of the military services will 
remain $1 billion short of their requirements even after the 
bill approved by the Committee is passed unless more funding 
can be added. It is the responsibility of Congress to correct 
the President's defense budget and supplemental funding 
requests when they are lacking, a responsibility which Congress 
has kept, with bipartism support, in each of the last several 
fiscal years. For exactly the same reasons as in those years, 
both the Congress and the Appropriations Committee must 
reevaluate the level of DOD funding in this year's supplemental 
as it moves through the legislative process.

                                                      Norman Dicks.

                                  
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