[Federal Register Volume 62, Number 202 (Monday, October 20, 1997)]
[Notices]
[Pages 54564-54568]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28061]



[[Page 54563]]

_______________________________________________________________________

Part VI





Office of Management and Budget





_______________________________________________________________________



Cancellation Pursuant to Line Item Veto Act; Energy and Water 
Development Appropriations Act, 1998; Notices

  Federal Register / Vol. 62, No. 202 / Monday, October 20, 1997 / 
Notices  

[[Page 54564]]



OFFICE OF MANAGEMENT AND BUDGET


Cancellation Pursuant to Line Item Veto Act; Energy and Water 
Development Appropriations Act, 1998

October 17, 1997.
    One Special Message from the President under the Line Item Veto Act 
is published below. The President signed this message on October 17, 
1997. Under the Act, the message is required to be printed in the 
Federal Register (2 U.S.C. 691a(c)(2)).
Clarence C. Crawford,
Associate Director for Administration.

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

THE WHITE HOUSE,
Washington,
October 17, 1997.

    Dear Mr. President:
    In accordance with the Line Item Veto Act, I hereby cancel the 
dollar amounts of discretionary budget authority, as specified in 
the attached reports, contained in the ``Energy and Water 
Development Appropriations Act, 1998'' (H.R. 2203, approved October 
13, 1997). I have determined that the cancellation of these amounts 
will reduce the Federal budget deficit, will not impair any 
essential Government functions, and will not harm the national 
interest. This letter, together with its attachments, constitutes a 
special message under section 1022 of the Congressional Budget and 
Impoundment Control Act of 1974, as amended.
      Sincerely,
William J. Clinton

The Honorable Albert Gore, Jr.,
President of the Senate, Washington, D.C. 20510.

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THE WHITE HOUSE,
Washington,
October 17, 1997.

    Dear Mr. Speaker:
    In accordance with the Line Item Veto Act, I hereby cancel the 
dollar amounts of discretionary budget authority, as specified in 
the attached reports, contained in the ``Energy and Water 
Development Appropriations Act, 1998'' (H.R. 2203, approved October 
13, 1997). I have determined that the cancellation of these amounts 
will reduce the Federal budget deficit, will not impair any 
essential Government functions, and will not harm the national 
interest. This letter, together with its attachments, constitutes a 
special message under section 1022 of the Congressional Budget and 
Impoundment Control Act of 1974, as amended.
      Sincerely,
William J. Clinton

The Honorable Newt Gingrich,
Speaker of the House of Representatives, Washington, D.C. 20515.

Cancellation No. 97-57

CANCELLATION OF DOLLAR AMOUNT OF DISCRETIONARY BUDGET AUTHORITY

Report Pursuant to the Line Item Veto Act, P.L. 104-130

    Bill Citation: ``Energy and Water Development Appropriations Act, 
1998'' (H.R. 2203).
    1(A). Dollar Amount of Discretionary Budget Authority: $3,500 
thousand for Lake George, Hobart, Indiana on pages 3 and 54 of House 
Report 105-271, dated September 26, 1997.
    1(B). Determinations: This cancellation will reduce the Federal 
budget deficit, will not impair any essential Government functions, and 
will not harm the national interest.
    1(C), (E). Reasons for Cancellation; Facts, Circumstances, and 
Considerations Relating to or Bearing Upon the Cancellation; and 
Estimated Effect of Cancellation on Objects, Purposes, and Programs: 
The Lake George, Hobart, Indiana, project, which would require total 
Federal funding of $3.5 million, would have the Army Corps of Engineers 
fund dredging and construction of sediment traps to reduce further 
sediment build-up of a recreation lake owned and operated by the City 
of Hobart. This Administration and previous Administrations have given 
low priority to Corps participation in projects whose primary benefits 
are local recreation. Generally, the Corps will build cost-shared 
recreation facilities only if it is a relatively small part of a 
Federal project that focuses on one or more of the Corps' primary 
missions (e.g., flood control, navigation). Since the primary purpose 
of this project is to enhance local recreation opportunities at a non-
Federal lake, it should be undertaken by local interests.
    1(D). Estimated Fiscal, Economic, and Budgetary Effect of 
Cancellation: As a result of the cancellation, Federal outlays will not 
increase, as specified below. This will have a commensurate effect on 
the Federal budget deficit and, to that extent, will have a beneficial 
effect on the economy.

                             Outlay changes                             
                        [In thousands of dollars]                       
                                                                        
                                                                        
                                                                        
Fiscal year:                                                            
    1998....................................................      -2,100
    1999....................................................      -1,400
    2000....................................................  ..........
    2001....................................................  ..........
    2002....................................................  ..........
                                                             -----------
      Total.................................................      -3,500
                                                                        

1(F). Adjustments to Non-Defense Discretionary Spending Limits

    Budget authority: -$3,500 thousand in FY 1998.
    Outlays: The estimated outlay effect for each year is shown above.
    Evaluation of Effects of These Adjustments upon Sequestration 
Procedures: If a sequestration were required, such sequestration would 
occur at levels that are reduced by the amounts above.
    2(A). Agency: Army Corps of Engineers.
    2(A). Bureau: n/a.
    2(A). Governmental Function/Project (Account): Dredging of Lake 
George, Hobart, Indiana (Construction, General).
    2(B). States and Congressional Districts Affected: Indiana, 1st 
Congressional District.
    2(C). Total Number of Cancellations (inclusive) in Current Session 
in each State and District identified above: Indiana: three; 1st 
District: one.

Cancellation No. 97-58

CANCELLATION OF DOLLAR AMOUNT OF DISCRETIONARY BUDGET AUTHORITY

Report Pursuant to the Line Item Veto Act, P.L. 104-130

    Bill Citation: ``Energy and Water Development Appropriations Act, 
1998'' (H.R. 2203).
    1(A). Dollar Amount of Discretionary Budget Authority: $800 
thousand for Neabsco Creek, Virginia, on page 56 of House Report 105-
271, dated September 26, 1997.
    1(B). Determinations: This cancellation will reduce the Federal 
budget deficit, will not impair any essential Government functions, and 
will not harm the national interest.
    1(C), (E). Reasons for Cancellation; Facts, Circumstances, and 
Considerations Relating to or Bearing Upon the Cancellation; and 
Estimated Effect of Cancellation on Objects, Purposes, and Programs: 
The Neabsco Creek Flood Control Project, Prince William County, 
Virginia, which would require total Federal funding of over $1 million, 
would have the Army Corps of Engineers remove creek debris and 
accumulated sediment from the channel of Neabsco Creek. The Corps of 
Engineers previously conducted studies under two of its program 
authorities (Sections 205 and 208) to determine whether a project could 
be developed that is technically and economically feasible, 
environmentally acceptable, and is consistent with Administration 
policies. Both studies concluded that no economically justified project 
could be developed for this area. In fact, the

[[Page 54565]]

studies concluded that the Federal investment would return less than 50 
cents on the dollar (national benefit--cost ratio of less than 0.5 to 
1.0). The Administration previously informed Congress that it opposed 
authorization of this project during Congressional consideration of the 
Water Resources Development Act of 1996.
    1(D). Estimated Fiscal, Economic, and Budgetary Effect of 
Cancellation: As a result of the cancellation, Federal outlays will not 
increase, as specified below. This will have a commensurate effect on 
the Federal budget deficit and, to that extent, will have a beneficial 
effect on the economy.

                             Outlay changes                             
                        [In thousands of dollars]                       
                                                                        
                                                                        
                                                                        
Fiscal year:                                                            
    1998....................................................        -480
    1999....................................................        -320
    2000....................................................  ..........
    2001....................................................  ..........
    2002....................................................  ..........
                                                             -----------
      Total.................................................        -800
                                                                        

1(F). Adjustments to Non-Defense Discretionary Spending Limits

    Budget authority: -$800 thousand in FY 1998
    Outlays: The estimated outlay effect for each year is shown above.
    Evaluation of Effects of These Adjustments upon Sequestration 
Procedures: If a sequestration were required, such sequestration would 
occur at levels that are reduced by the amounts above.
    2(A). Agency: Army Corps of Engineers.
    2(A). Bureau: n/a.
    2(A). Governmental Function/Project (Account): Removal of debris 
and sediment from the channel of Neabsco Creek, Virginia (Construction, 
General).
    2(B). States and Congressional Districts Affected: Virginia, 11th 
Congressional District.
    2(C). Total Number of Cancellations (inclusive) in Current Session 
in each State and District identified above: Virginia: four; 11th 
District: one.

Cancellation No. 97-59

CANCELLATION OF DOLLAR AMOUNT OF DISCRETIONARY BUDGET AUTHORITY

Report Pursuant to the Line Item Veto Act, P.L. 104-130

    Bill Citation: ``Energy and Water Development Appropriations Act, 
1998'' (H.R. 2203).
    1(A). Dollar Amount of Discretionary Budget Authority: $1,900 
thousand for Sardis Lake (Shady Cove Marina), Yazoo Basin, Mississippi, 
on pages 6, 34, and 58 of House Report 105-271, dated September 26, 
1997.
    1(B). Determinations: This cancellation will reduce the Federal 
budget deficit, will not impair any essential Government functions, and 
will not harm the national interest.
    1(C), (E). Reasons for Cancellation; Facts, Circumstances, and 
Considerations Relating to or Bearing Upon the Cancellation; and 
Estimated Effect of Cancellation on Objects, Purposes, and Programs: 
The Sardis Lake, Mississippi, project, which would require an estimated 
total Federal funding of $4 million ($2.1 million was appropriated in 
FY 1997), would have the Army Corps of Engineers dredge at full Federal 
expense a section of Sardis Lake to create a marina basin for leisure 
craft and recreational opportunities. This Administration and previous 
Administrations have given low priority to Corps participation in 
projects whose primary benefits are local recreation. Generally, the 
Corps will build cost-shared recreation facilities only if it is a 
relatively small part of a project that focuses on one or more of the 
Corps' primary missions (e.g., flood control, commercial navigation). 
Since the primary purpose of this project is to enhance local 
recreation navigation, it should be undertaken by local interests.
    Furthermore, it is premature to begin construction of this project. 
The Army Corps of Engineers has not completed the normal project 
planning and review process applied to all such projects to determine 
whether the project is technically and economically feasible, 
environmentally acceptable, and is consistent with Administration 
policies. Completing this process helps ensure that Federal funds are 
used only to construct projects that generate a positive economic 
return to the Nation and meet all environmental requirements.
    Finally, this project has not been subject to the normal 
Congressional hearing and authorization process.
    1(D). Estimated Fiscal, Economic, and Budgetary Effect of 
Cancellation: As a result of the cancellation, Federal outlays will not 
increase, as specified below. This will have a commensurate effect on 
the Federal budget deficit and, to that extent, will have a beneficial 
effect on the economy.

                             Outlay changes                             
                        [In thousands of dollars]                       
                                                                        
                                                                        
                                                                        
Fiscal year:                                                            
    1998....................................................      -1,425
    1999....................................................        -475
    2000....................................................  ..........
    2001....................................................  ..........
    2002....................................................  ..........
                                                             -----------
      Total.................................................      -1,900
                                                                        

1(F). Adjustments to Non-Defense Discretionary Spending Limits

    Budget authority: -$1,900 thousand in FY 1998.
    Outlays: The estimated outlay effect for each year is shown above.
    Evaluation of Effects of These Adjustments upon Sequestration 
Procedures: If a sequestration were required, such sequestration would 
occur at levels that are reduced by the amounts above.
    2(A). Agency: Army Corps of Engineers.
    2(A). Bureau: n/a.
    2(A). Governmental Function/Project (Account): Dredging of section 
of Sardis Lake, Mississippi (Flood Control, Mississippi River and 
Tributaries, Arkansas, Illinois, Kentucky, Louisiana, Mississippi, 
Missouri, and Tennessee).
    2(B). States and Congressional Districts Affected: Mississippi, 1st 
and 4th Congressional Districts.
    2(C). Total Number of Cancellations (inclusive) in Current Session 
in each State and District identified above: Mississippi: one; 1st 
District: one; 4th District: one.

Cancellation No. 97-60

CANCELLATION OF DOLLAR AMOUNT OF DISCRETIONARY BUDGET AUTHORITY

Report Pursuant to the Line Item Veto Act, P.L. 104-130

    Bill Citation: ``Energy and Water Development Appropriations Act, 
1998'' (H.R. 2203).
    1(A). Dollar Amount of Discretionary Budget Authority: $800 
thousand for Chena River Dredging, Fairbanks, Alaska on page 7, 35, and 
58 of House Report 105-271, dated September 26, 1997.
    1(B). Determinations: This cancellation will reduce the Federal 
budget deficit, will not impair any essential Government functions, and 
will not harm the national interest.
    1(C), (E). Reasons for Cancellation; Facts, Circumstances, and 
Considerations Relating to or Bearing Upon the Cancellation; and 
Estimated Effect of Cancellation on Objects, Purposes, and Programs: 
The Chena River Dredging, Fairbanks, Alaska, project, which would 
require total Federal funding of $800 thousand, would have the Army 
Corps of Engineers dredge at full Federal expense

[[Page 54566]]

a recreation channel for use by a single tour boat operator. There is 
no authorized Army Corps of Engineers navigation project in the area. 
This Administration and previous Administrations have given low 
priority to Corps participation in projects whose primary benefits are 
local recreation. Generally, the Corps will participate in a recreation 
features only if it is a relatively small part of a project that 
focuses on one or more of the Corps' primary missions (e.g., flood 
control, commercial navigation). Since the primary purpose of this 
project is to enhance local recreation navigation, it should be 
undertaken by local interests. In addition, it is premature to begin 
construction of this project. This project has not completed the normal 
Corps of Engineers project planning and review process applied to all 
Corps projects to determine whether the project is technically and 
economically feasible, environmentally acceptable, and is consistent 
with Administration policies. Completing this process helps ensure that 
Federal funds are used only to construct projects that generate a 
positive economic return to the Nation and meet all environmental 
requirements.
    1(D). Estimated Fiscal, Economic, and Budgetary Effect of 
Cancellation: As a result of the cancellation, Federal outlays will not 
increase, as specified below. This will have a commensurate effect on 
the Federal budget deficit and, to that extent, will have a beneficial 
effect on the economy.

                             Outlay changes                             
                        [In thousands of dollars]                       
                                                                        
                                                                        
                                                                        
Fiscal year:                                                            
    1998....................................................        -480
    1999....................................................        -320
    2000....................................................  ..........
    2001....................................................  ..........
    2002....................................................  ..........
                                                             -----------
      Total.................................................        -800
                                                                        

1(F). Adjustments to Non-Defense Discretionary Spending Limits

    Budget authority: -$800 thousand in FY 1998
    Outlays: The estimated outlay effect for each year is shown above.
    Evaluation of Effects of These Adjustments upon Sequestration 
Procedures: If a sequestration were required, such sequestration would 
occur at levels that are reduced by the amounts above.
    2(A). Agency: Army Corps of Engineers.
    2(A). Bureau: n/a.
    2(A). Governmental Function/Project (Account): Dredging of channel 
on Chena River, Fairbanks, Alaska (Operation and Maintenance, General).
    2(B). States and Congressional Districts Affected: Alaska, 
Representative At Large.
    2(C). Total Number of Cancellations (inclusive) in Current Session 
in each State and District identified above: Alaska: one.

Cancellation No. 97-61

CANCELLATION OF DOLLAR AMOUNT OF DISCRETIONARY BUDGET AUTHORITY

Report Pursuant to the Line Item Veto Act, P.L. 104-130

    Bill Citation: ``Energy and Water Development Appropriations Act, 
1998'' (H.R. 2203).
    1(A). Dollar Amount of Discretionary Budget Authority: $6,000 
thousand for Allegheny River (Kittanning Riverfront Park), 
Pennsylvania, on pages 7, 35, and 65 of House Report 105-271, dated 
September 26, 1997.
    1(B). Determinations: This cancellation will reduce the Federal 
budget deficit, will not impair any essential Government functions, and 
will not harm the national interest.
    1(C), (E). Reasons for Cancellation; Facts, Circumstances, and 
Considerations Relating to or Bearing Upon the Cancellation; and 
Estimated Effect of Cancellation on Objects, Purposes, and Programs: 
The Allegheny River (Kittanning River Front Park), Pennsylvania, 
project, which would require total Federal funding of $6 million, would 
have the Army Corps of Engineers dredge at full Federal expense a new 
recreation channel to allow passenger boat operators access to 
Kittanning Riverfront Park. There is no Federal channel there now. This 
Administration and previous Administrations have given low priority to 
Corps participation in projects whose primary benefits are local 
recreation. Generally, the Corps will build cost-shared recreation 
facilities only if it is a relatively small part of a Federal project 
that focuses on one or more of the Corps' primary missions (e.g., flood 
control, commercial navigation). Since the primary purpose of this 
project is to enhance local recreation navigation separable from the 
existing Federal channel, it should be undertaken by local interests. 
Further, it is premature to fund construction of this project. This 
project has not completed the normal Corps of Engineers project 
planning and review process applied to all Corps projects to determine 
whether the project is technically and economically feasible, 
environmentally acceptable, and is consistent with Administration 
policies. Completing this process helps ensure that Federal funds are 
used only to construct projects that generate a positive economic 
return to the Nation and meet all environmental requirements.
    1(D). Estimated Fiscal, Economic, and Budgetary Effect of 
Cancellation: As a result of the cancellation, Federal outlays will not 
increase, as specified below. This will have a commensurate effect on 
the Federal budget deficit and, to that extent, will have a beneficial 
effect on the economy.

                             Outlay changes                             
                        [In thousands of dollars]                       
                                                                        
                                                                        
                                                                        
Fiscal year:                                                            
    1998....................................................      -3,600
    1999....................................................      -2,400
    2000....................................................  ..........
    2001....................................................  ..........
    2002....................................................  ..........
                                                             -----------
      Total.................................................      -6,000
                                                                        

1(F). Adjustments to Non-Defense Discretionary Spending Limits 

    Budget authority: -$6,000 thousand in FY 1998.
    Outlays: The estimated outlay effect for each year is shown above.
    Evaluation of Effects of These Adjustments upon Sequestration 
Procedures: If a sequestration were required, such sequestration would 
occur at levels that are reduced by the amounts above.
    2(A). Agency: Army Corps of Engineers.
    2(A). Bureau: n/a.
    2(A). Governmental Function/Project (Account): Dredging of channel 
on Allegheny River, Pennsylvania (Operation and Maintenance, General).
    2(B). States and Congressional Districts Affected: Pennsylvania, 
12th Congressional District.
     2(C). Total Number of Cancellations (inclusive) in Current Session 
in each State and District identified above: Pennsylvania: four; 12th 
District: three.

Cancellation No. 97-62

CANCELLATION OF DOLLAR AMOUNT OF DISCRETIONARY BUDGET AUTHORITY

Report Pursuant to the Line Item Veto Act, P.L. 104-130

    Bill Citation: ``Energy and Water Development Appropriations Act, 
1998'' (H.R. 2203).
    1(A). Dollar Amount of Discretionary Budget Authority: $ 1,000 
thousand and $300 thousand, In-situ Copper Mining Research Project, on 
page 69 of House Report 105-271, dated September 26, 1997.

[[Page 54567]]

    1(B). Determinations: This cancellation will reduce the Federal 
budget deficit, will not impair any essential Government functions, and 
will not harm the national interest.
    1(C), (E). Reasons for Cancellation: Facts, Circumstances, and 
Considerations Relating to or Bearing Upon the Cancellation; and 
Estimated Effect of Cancellation on Objects, Purposes, and Programs: 
The purpose of this project has been to demonstrate the technical, 
economic, and environmental feasibility of in-place recovery of low-
grade, copper oxide material. The total cost to date of this 
demonstration project, which was initially funded in FY 1988 as a 
Bureau of Mines research project, is $31.7 million. Federal funding to 
date totals $26.5 million, including $16.8 million for contract work 
with the private partners and $9.7 million for in-house Federal 
research.
    Federal funding of this demonstration effort is no longer 
justified. The demonstration facility began operations in February 1996 
and test data have been furnished to the Bureau of Reclamation since 
that time and will continue to be furnished from tests conducted prior 
to close-out. The FY 1996 appropriation for the Bureau of Mines 
included funds to close out the In-situ Copper Mining demonstration 
project. The Bureau of Reclamation assumed oversight responsibility for 
close out of this project in February 1996. Additional funding beyond 
FY 1996 was not needed to complete this orderly close out and was not 
requested in either the President's FY 1997 or FY 1998 Budgets, 
although Congress added funds in both years. The private cost-sharing 
partners will keep the $5 million demonstration facility after close-
out and can continue the demonstration effort if they believe it is 
warranted.
    1(D). Estimated Fiscal, Economic, and Budgetary Effect of 
Cancellation: As a result of the cancellation, Federal outlays will not 
increase, as specified below. This will have a commensurate effect on 
the Federal budget deficit and, to that extent, will have a beneficial 
effect on the economy.

                             Outlay changes                             
                        [In thousands of dollars]                       
                                                                        
                                                                        
                                                                        
Fiscal year:                                                            
    1998....................................................      -1,053
    1999....................................................        -247
    2000....................................................  ..........
    2001....................................................  ..........
    2002....................................................  ..........
                                                             -----------
      Total.................................................      -1,300
                                                                        

1(F). Adjustments to Non-Defense Discretionary Spending Limits

    Budget authority: -$1,300 thousand in FY 1998.
    Outlays: The estimated outlay effect for each year is shown above.
    Evaluation of Effects of These Adjustments upon Sequestration 
Procedures: If a sequestration were required, such sequestration would 
occur at levels that are reduced by the amounts above.
    2(A). Agency: Department of the Interior.
    2(A). Bureau: Bureau of Reclamation.
    2(A). Governmental Function/Project (Account): In-situ Copper 
Mining Research Project, Applied Science and Technology Development 
Program (Water and Related Resources).
    2(B). States and Congressional Districts Affected: Arizona, 5th and 
6th Congressional Districts.
    2(C). Total Number of Cancellations (inclusive) in Current Session 
in each State and District identified above: Arizonia: one; 5th 
District: one; 6th District: one.

Cancellation No. 97-63

CANCELLATION OF DOLLAR AMOUNT OF DISCRETIONARY BUDGET AUTHORITY

Report Pursuant to the Line Item Veto Act, P.L. 104-130

    Bill Citation: Energy and Water Development Appropriations Act, 
1998 (H.R. 2203)
    1(A). Dollar Amount of Discretionary Budget Authority: $1,000 
thousand for a research and development partnership to manufacture 
electric transmission lines using aluminum matrix composite materials 
on page 82 of House Report 105-271, dated September 26, 1997.
    1(B). Determinations: This cancellation will reduce the Federal 
budget deficit, will not impair any essential Government functions, and 
will not harm the national interest.
    1(C), (E). Reasons for Cancellation; Facts, Circumstances, and 
Considerations Relating to or Bearing Upon the Cancellation; and 
Estimated Effect of Cancellation on Objects, Purposes, and Programs: 
The provisions would start a program to fund cost-shared development of 
high-voltage power cables that use aluminum matrix composites (ceramic 
fibers glued together with aluminum) for the support member rather than 
steel as is the current practice. This would provide first-year funding 
for a program that has been proposed by a private consortium of 
manufacturing companies and utilities. Materials previously provided to 
the Department of Energy by the consortium indicated that this would be 
a 4-year program with a total estimated Federal cost of $15 million, so 
most of the program costs would be incurred in FY 1999-2001.
    There is substantial private-sector incentive to engage in this 
development, and a Federal subsidy is unnecessary. The Department of 
Energy eliminated their electric transmission-line R&D program several 
years ago, so cancellation of these funds would have no effect on on-
going programs at the Department of Energy.
    1(D): Estimated Fiscal, Economic, and Budgetary Effect of 
Cancellation: As a result of this cancellation, Federal outlays will 
not increase, as specified below. Future outlays of $14 million may 
also potentially be avoided. This will have a commensurate effect on 
the Federal budget deficit and, to that extent, will have a beneficial 
effect on the economy.

                             Outlay changes                             
                        [In thousands of dollars]                       
                                                                        
                                                                        
                                                                        
Fiscal year:                                                            
    1998....................................................        -450
    1999....................................................        -400
    2000....................................................  ..........
    2001....................................................  ..........
    2002....................................................  ..........
                                                             -----------
      Total.................................................      -1,000
                                                                        

    2(A). Agency: Department of Energy.
    Bureau: Energy Efficiency and Renewable Energy.
    Governmental Function/Project (Account): Energy/Solar and Renewable 
Energy/Electric Energy Systems (Energy Supply).
    2(B). States and Congressional Districts Affected: Minnesota, 5th 
Congressional District.
    2(C). Total Number of Cancellations (Inclusive) in Current Session 
in each State and District Indicated Above: Minnesota: one; 5th 
District: one.

Cancellation No. 97-64

CANCELLATION OF DOLLAR AMOUNT OF DISCRETIONARY BUDGET AUTHORITY

Report Pursuant to the Line Item Veto Act, P.L. 104-130

    Bill Citation: ``Energy and Water Development Appropriations Act, 
1998'' (H.R. 2203).
    1(A). Dollar Amount of Discretionary Budget Authority (thousands): 
$4,000 thousand for the Nuclear Regulatory Commission to license a 
multi-purpose canister design on page 13 of House Report 105-271, dated 
September 26, 1997.
    1(B). Determinations: This cancellation will reduce the Federal

[[Page 54568]]

budget deficit, will not impair any essential Government functions, and 
will not harm the national interest.
    1(C), (E). Reasons for Cancellation; Facts, Circumstances, and 
Considerations Relating to or Bearing Upon the Cancellation; and 
Estimated Effect of Cancellation on Objects, Purposes, and Programs: 
The provision would require the Department of Energy (DOE) to provide 
the Nuclear Regulatory Commission (NRC) $4 million to license a multi-
purpose canister (MPC) design. Multi-purpose canisters are expected to 
be used for temporary storage, transportation, and permanent disposal 
of spent nuclear fuel (SNF) from commercial nuclear power plants and 
high level waste from the DOE nuclear weapons complex.
    The provision is objectionable for two reasons. First, it 
constitutes an unwarranted corporate subsidy and would undermine 
current legal requirements that the NRC recover virtually 100 percent 
of its costs of operation through charging fees to licensees. The NRC 
currently awards Certificates of Compliance (``licenses'' or ``COCs'') 
to canister designers on a cost-reimbursable basis, as required by law. 
Five of the six known spent fuel storage and transportation cask 
vendors in the United States have already submitted applications for 
certification for dual-purpose (as opposed to multi-purpose) canisters 
to the NRC and, in the absence of this provision, can expect to pay 
between $400,000 and $600,000 to NRC to complete the 2-3 year 
certification process for each application. (Dual purpose canisters can 
be used for temporary storage and transportation but not permanent 
disposal of spent nuclear fuel.)
    Second, it will be impossible for the NRC to certify or license an 
MPC until the Federal government selects a permanent disposal site and 
the NRC agrees to the waste acceptance criteria for the disposal 
canisters to be placed at that site. Under current DOE plans, the 
Federal government will not decide on a permanent nuclear waste 
disposal site until at least 2001.
    1(D). Estimated Fiscal, Economic, and Budgetary Effect of 
Cancellation: As a result of the cancellation, Federal outlays will not 
increase, as specified below. This will have a commensurate effect on 
the Federal budget deficit and, to that extent, will have a beneficial 
effect on the economy.

                             Outlay changes                             
                        [In thousands of dollars]                       
                                                                        
                                                                        
                                                                        
Fiscal year:                                                            
    1998....................................................  ..........
    1999....................................................  ..........
    2000....................................................  ..........
    2001....................................................      -2,000
    2002....................................................      -2,000
                                                             -----------
      Total.................................................      -4,000
                                                                        

1(F). Adjustments to Non-Defense Discretionary Spending Limits

    Budget authority: -$4,000 thousand in FY 1998.
    Outlays: The estimated outlay effect for each year is shown above.
    Evaluation of Effects of These Adjustments upon Sequestration 
Procedures: If a sequestration were required, such sequestration would 
occur at levels that are reduced by the amounts above.
    2(A). Agency: Department of Energy and Nuclear Regulatory 
Commission.
    2(A). Bureau: Department of Energy/Office of Civilian Radioactive 
Waste Management.
    2(A). Governmental Function/Project (Account): Nuclear Regulatory 
Commission multipurpose canister licensing (Nuclear Waste Disposal 
Fund).
    2(B). States and Congressional Districts Affected: All.
    2(C). Total Number of Cancellations (inclusive) in Current Session 
in each State and District identified above: The provision would have 
had a national effect.

[FR Doc. 97-28061 Filed 10-17-97; 4:36 pm]
BILLING CODE 3110-01-P