STATEMENT OF ADMINISTRATION POLICY
H.R. 2028 – Energy and Water Development
and Related Agencies Appropriations Act, 2016
(Sen. Cochran, R-MS)
The
Administration strongly opposes Senate passage of H.R. 2028, making
appropriations for energy and water development, and related agencies
for the fiscal year ending September 30, 2016,
and for other purposes. Although the bill supports key national
security items, the bill drastically underfunds critical investments
that develop American energy sources to build a clean and secure energy
future; develop and commercialize the emerging technologies that create
high-quality jobs and enhance the Nation's economic competitiveness; and
improve resilience against current and ongoing climate impacts that
threaten our economy, public health, and natural resources. As a
result, it would put at risk U.S. competitiveness in new markets for
clean energy industries such as advanced vehicles, advanced
manufacturing, energy efficiency for homes and businesses, and domestic
renewable energy such as wind, solar, and biomass. If the President were presented with H.R. 2028, his senior advisors would recommend that he veto the bill.
Enacting
H.R. 2028 and adhering to the congressional Republican budget's overall
spending limits for fiscal year (FY) 2016 would hurt our economy and
shortchange investments in middle-class priorities. Sequestration was
never intended to take effect: rather, it was supposed to threaten such
drastic cuts to both defense and non-defense funding that policymakers
would be motivated to come to the table and reduce the deficit through
smart, balanced reforms. The Republican framework would bring base
discretionary funding for both non-defense and defense for FY 2016 to
the lowest real levels in a decade. Compared to the President's Budget,
the cuts would result in tens of thousands of the Nation's most
vulnerable children losing access to Head Start, millions fewer workers
receiving job training and employment services, and drastic cuts to
scientific research awards and grants, along with other impacts that
would hurt the economy, the middle class, and Americans working hard to
reach the middle class.
Sequestration
funding levels would also put our national security at unnecessary
risk, not only through pressures on defense spending, but also through
pressures on State, USAID, Homeland Security, and other non-defense
programs that help keep us safe. More broadly, the strength of our
economy and the security of our Nation are linked. That is why the
President has been clear that he is not willing to lock in sequestration
going forward, nor will he accept fixes to defense without also fixing
non-defense.
The
President's senior advisors would recommend that he veto H.R. 2028 and
any other legislation that implements the current Republican budget
framework, which blocks the investments needed for our economy to
compete in the future. The
Administration looks forward to working with the Congress to reverse
sequestration for defense and non-defense priorities and offset the cost
with commonsense spending and tax expenditure cuts, as Members of
Congress from both parties have urged.
The Administration would like to take this opportunity to share additional views regarding the Committee's version of the bill.
Department of Energy (DOE)
Office of Energy Efficiency and Renewable Energy. The
Administration strongly objects to the $1.9 billion provided in the
bill for the Office of Energy Efficiency and Renewable Energy. Overall,
this level is $790 million below the FY 2016 Budget request. Relative
to the FY 2016 Budget request, the bill reduces funding for renewable
energy by 34 percent, sustainable transportation by 23 percent, and
energy efficiency by 35 percent. These reductions would significantly
underfund critical activities that support the development and
commercialization of clean energy technologies including wind energy and
advanced manufacturing capabilities. At this funding level, the number
of research, development, and demonstration projects supported in
cooperation with industry, universities, and the national labs would be
reduced, limiting innovation and technological advancement, curtailing
solutions to reduce U.S. dependence on oil and reduce energy waste, and
undermining the Nation's industrial competitiveness in the future global
clean energy economy. The Congress is urged to fully fund the FY 2016
Budget request of $2.7 billion.
Advanced Research Projects Agency-Energy (ARPA-E).
The Administration objects to the $291 million provided in the bill for
ARPA-E, which is $34 million or 10 percent below the FY 2016 Budget
request. This funding reduction would impact investments in
transformational technologies that reduce energy-related emissions,
increase energy efficiency across multiple economic sectors, and reduce
energy imports.
Electricity Delivery and Energy Reliability.
The Administration objects to the $151 million provided in the bill for
Electricity Delivery and Energy Reliability, which is $119 million or
44 percent below the FY 2016 Budget request. At the funding levels
provided in the bill, critical activities supporting a secure, reliable,
and modernized electricity grid as well as energy assurance, would go
unfunded. Investments in a modernized grid are necessary to move the
Nation to a cleaner more secure energy future.
Fossil Energy and Nuclear Energy.
The Administration notes that the bill includes funding above the FY
2016 Budget request in some areas that are already well established in
the market, including for nuclear ($948 million, $41 million or 4.5
percent above the FY 2016 Budget request) and for Fossil Energy Research
and Development ($598 million, $38 million or 6.8 percent above the FY
2016 Budget request), yet makes drastic reductions in those areas that
are most crucial to the Nation's clean energy future and continued U.S.
technology leadership. The Administration encourages the Congress to
fund DOE's energy programs at the requested level, as this balances the
portfolio among items of short-, medium-, and long-term progress and
accounts for the potential contributions to U.S. leadership in these
technology areas.
Office of Science.
The Administration appreciates the Committee's support for the Office
of Science, in particular the support for capable exascale computing.
However, the level of funding provided, which is $0.2 billion below the
FY 2016 Budget request of $5.3 billion, would reduce research and
development programs throughout the agency and the Administration
encourages the Congress to fully fund the FY 2016 Budget request.
Strategic Petroleum Reserve (SPR).
The Administration opposes the $200 million level provided for the SPR,
which is $57 million or 22 percent below the FY 2016 Budget request of
$257 million. At this funding level, the bill fails to fund activities
supporting timely replacement of equipment and physical systems that are
necessary to begin to address the backlog of deferred maintenance
activities, and to enhance distribution flexibility and reliability.
Absent this funding, the SPR's energy security mission might be at risk.
Energy Information Administration (EIA).
The Administration urges the Congress to fully fund the FY 2016 Budget
request of $131 million for EIA to address critical energy data gaps,
expand domestic energy data and analysis, and increase energy data
integration with Canada and Mexico.
Nuclear Waste.
The Administration appreciates the Committee's support for implementing
a workable solution for the management and disposal of the Nation's
nuclear waste.
Federal Information Technology Acquisition Reform Act.
The Administration strongly objects to section 312 of the bill, which
excludes information technology (IT) spending at DOE labs from the
management improvements and accountability introduced by the Federal
Information Technology Acquisition Reform Act. This exclusion
would constrain the ability of the Secretary and Chief Information
Officer to ensure the Department's mission is effectively and
efficiently executed by reducing duplicative IT systems, implementing a
comprehensive cybersecurity solution, and addressing other IT management
issues, which support the President's goal to deliver a Government that
is more effective, efficient, and accountable.
Digital Accountability and Transparency Act of 2014 (DATA Act).
The Administration urges the Congress to fully fund the FY 2016 Budget
request for DOE and the Nuclear Regulatory Commission to implement the
DATA Act. This funding would support efforts to provide more
transparent Federal spending for data activities, updating IT systems,
changing business processes, and employing a uniform procurement
instrument identifier.
U.S. Digital Service Team. The Administration urges the Congress to fund the FY 2016 Budget request for DOE and the Nuclear Regulatory Commission to develop a U.S. Digital Service team. This funding would support efforts to manage digital services that have the greatest impact to citizens and businesses.
Corps of Engineers – Civil Works (Corps)
Overall Funding. The
bill funds the Corps civil works program at a net level of $5.4
billion. The Administration believes the more appropriate overall
funding levels proposed in the FY 2016 Budget request would limit
spending on projects that provide a low return to the Nation.
Office of the Assistant Secretary.
The bill funds the Office of the Assistant Secretary at $3 million, a
roughly $2 million, or 35 percent, decrease from the FY 2016 Budget
request. This reduction would not support the staffing necessary to
provide oversight of the civil works program.
Corps Regulatory Program. The
Administration encourages the Congress to fund the Corps' regulatory
program at the requested level. A $5 million reduction in funding would
inhibit the Corps' ability to issue permits in a timely manner, which
could negatively affect business and development, and to protect
important aquatic resources, while undertaking needed programmatic
improvements, including implementation of the Clean Water rulemaking.
Fill Material under the Clean Water Act. The
Administration believes it is essential to retain Federal Agency
discretion to pursue rulemakings they deem necessary to protect
America's clean water resources, which are critical to American families
and businesses. The Administration strongly opposes section 104 of the
bill, which could hamstring future regulatory work.
Federal Flood Risk Management Standard. The
Administration objects to section 503 of the bill, which prohibits
funds from being used to implement, administer, carry out, modify,
revise, or enforce Executive Order 13690 entitled "Establishing a
Federal Flood Risk Management Standard and a Process for Further
Soliciting and Considering Stakeholder Input." If enacted, this
provision would undermine Federal agencies' ability to protect Federal
investments and could make our communities more vulnerable to flood
risks.
Department of the Interior, Bureau of Reclamation, and Central Utah Project
Overall Funding. The
bill provides $1.1 billion for the Bureau of Reclamation and $10
million for the Central Utah Project. The Administration appreciates
the Committee's support of the Bureau and the Central Utah Project.
Indian Water Rights Settlements.
The Administration objects to the $23 million or 23 percent reduction
to the FY 2016 Budget request for the Bureau of Reclamation for
implementing enacted Indian Water Rights Settlements, including
reductions in funding for the Crow settlement of over 80 percent, the
Aamodt settlement by more than half, and the Navajo-Gallup settlement by
over 10 percent. The funding requested for these settlements carefully
considered funding levels necessary in FY 2016 and future years to meet
the dates mandated in the settlement acts. This reduction would make
it difficult to meet Congress' own statutorily-defined deadlines. Indian
water settlement agreements can provide water supply certainty for
tribal communities, boost economic growth, and end expensive and
protracted litigation. The Administration urges the Congress to restore funding for this important program to the levels in the FY 2016 Budget request.
San Joaquin River Restoration.
The Administration appreciates the Committee's support of this
important program to restore and maintain fish populations and reduce or
avoid water supply impacts. This restoration program is a multi-year
effort that is integral to the implementation of Federal legislation
that settled 18 years of litigation.
California Storage Projects.
The Administration strongly supports efforts to help alleviate the
effects of drought in the West; however, the Administration is concerned
with section 207, which establishes deadlines for completing
feasibility studies for certain water storage projects. The provision
is unnecessary and the dates provided in the bill could prevent the
participation of non-Federal partners in certain of the studies and may
inhibit the Administration's ability to consider a full range of options
for addressing these issues.
Dam Safety Authorization.
Section 205 of the bill amends the Reclamation Safety of Dams Act to
allow new or supplementary non-safety-related project construction in
conjunction with Safety of Dams work, provided that the additional costs
are allocated to the authorized project purposes. Any such
authorization should ensure that the beneficiaries of the
non-safety-related project construction pay their full share of the
costs as a condition of construction and that there be no repayment
contract for that portion of the project.
Constitutional Concerns
Certain provisions in the bill, including sections 101 and 201, raise separation of powers concerns.
The Administration looks forward to working with the Congress as the FY 2016 appropriations process moves forward.
Source: Executive Office of the President, Office of Management and Budget
