Contents

• Introduction
• Overview of Interior, Environment, and Related Agencies Appropriations
• Title I. Department of the Interior
• Title II. Environmental Protection Agency
• Title III. Related Agencies
• FY2017 Appropriations
• Components of President Obama's Request
• FY2017 President Obama's Request Compared with FY2016 Enacted Appropriations
• Comparison of FY2017 Bills Passed by the House and Reported by the Senate Appropriations Committees
• FY2017 Bills Compared with FY2016 Appropriations
• H.R. 5538 Compared with FY2016 Appropriations
• S. 3068 Compared with FY2016 Appropriations
• FY2017 Bills Compared with President Obama's FY2017 Request
• H.R. 5538 Compared with President Obama's FY2017 Request
• S. 3068 Compared with President Obama's FY2017 Request
• FY2017 Continuing Appropriations

Summary

The Interior, Environment, and Related Agencies appropriations bill includes funding for approximately 30 agencies and entities. They include most of the Department of the Interior (DOI) as well as agencies within other departments, such as the Forest Service within the Department of Agriculture and the Indian Health Service within the Department of Health and Human Services. The bill also provides funding for the Environmental Protection Agency (EPA), arts and cultural agencies, and other entities. At issue for Congress is determining the amount, terms, and conditions of funding for FY2017 for agencies and programs within the bill.

Because no regular appropriations were enacted before the start of FY2017, continuing funds were provided through April 28, 2017, under the Further Continuing Appropriations Act, 2017 (CR; Division A, P.L. 114-254). The CR generally provided funding at the FY2016 level (in Division G, P.L. 114-113), minus an across-the-board reduction of 0.1901% for the period covered. Funding was provided for continuing projects and activities, under the same authority and conditions, and to the same extent and manner, as for FY2016. An earlier CR (Division C, P.L. 114-223), and P.L. 114-254, contained a total of 10 exceptions for Interior, Environment, and Related Agencies. These "anomalies" pertained to recreation fees, the Dwight D. Eisenhower Memorial, receipts from applications for permits to drill, presidential inaugural costs, certain EPA programs, the National Gallery of Art, the Smithsonian Institution, and the Indian Health Service.

In earlier action, for FY2017, President Obama had requested $33.18 billion for the agencies and entities typically funded in the annual bill. H.R. 5538 (114^th Congress), as passed by the House on July 14, 2016, contained $32.15 billion for FY2017, whereas S. 3068 (114^th Congress), as reported by the Senate Appropriations Committee on June 16, 2016, included $32.76 billion.

President Obama's request would have been an increase of $250.6 million (0.8%) over the FY2016 total of $32.93 billion, including $700.0 million in additional, emergency appropriations for wildland fires. By contrast, both H.R. 5538 as passed by the House and S. 3068 as reported from the Senate Appropriations Committee would have provided lower appropriations than enacted for FY2016. The House bill was $779.3 million (2.4%) less than FY2016, whereas the Senate bill contained $163.6 million (0.5%) less than FY2016.

The FY2016 appropriation, and FY2017 appropriations requested, approved by the House, and reported by the Senate Appropriations Committee, differed in a number of ways. For instance, only the President's request did not include discretionary appropriations for the Payments in Lieu of Taxes (PILT) program, as the President proposed mandatory funds for this program. PILT compensates counties and local governments for nontaxable lands within their jurisdictions. The total amounts also represented different levels of funding for wildland fires on DOI and Forest Service lands, as well as varied approaches to providing funds. The President proposed a new adjustment to the discretionary spending limits in law for wildfire suppression, the House bill included funding for the FLAME Wildfire Suppression Reserve Accounts, and the Senate bill provided some wildfire funds as emergency appropriations. The FY2016 appropriation included FLAME and emergency funding, but not a discretionary cap adjustment.

Other differences related to the amount of funds proposed for particular agencies. For example, whereas the President sought an increase in funds over FY2016 for EPA, the House and Senate bills provided lower funding. In other cases, the President, House, and Senate Committee proposed increased funds of varying amounts over the FY2016 level, as for the National Park Service, Indian Affairs bureaus, Indian Health Service, and Smithsonian Institution, among other agencies. In still other cases, decreased funds relative to FY2016 were included in the President's, House, and Senate Committee proposals, as in the case of the Forest Service.

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Interior, Environment, and Related Agencies: FY2017 Appropriations

Introduction

This report focuses on FY2017 appropriations for Interior, Environment, and Related Agencies. At issue for Congress is determining the amount of funding for agencies and programs in the bill and the terms and conditions of such funding.

This report first presents a brief overview of the agencies in the bill. It then provides a description of the appropriations requested by President Obama for FY2017.¹ Next, it compares the President's request for FY2017 with appropriations enacted for FY2016. It then compares the FY2017 House-passed and Senate-committee reported appropriations with each other, with FY2016 enacted appropriations, and with FY2017 appropriations requested by the President. Finally, it summarizes the continuing appropriations enacted for FY2017, first through December 9, 2016 (under Division C, P.L. 114-223), and then through April 28, 2017 (under Division A, P.L. 114-254).

Appropriations are complex. Budget justifications for requests for some agencies are large, generally several hundred pages long and containing numerous funding, programmatic, and legislative changes for congressional consideration. Further, appropriations laws provide funds for numerous accounts, activities, and sub-activities, and the accompanying explanatory statements provide additional directives and other important information. This report does not provide information at the account and sub-account levels, nor does it detail budgetary reorganizations or legislative changes enacted in law or proposed by the President. For information on a particular agency or individual accounts, programs, or activities administered by a particular agency, contact the key policy staff listed at the end of this report. In addition, for selected reports related to appropriations for Interior, Environment, and Related Agencies, such as individual agencies (e.g., National Park Service) or cross-cutting programs (e.g., Wildland Fire Management), see the "Interior & Environment Appropriations" subissue under the "Appropriations" Issue Area page on the Congressional Research Service (CRS) website.²

Overview of Interior, Environment, and Related Agencies Appropriations

The annual Interior, Environment, and Related Agencies appropriations bill³ includes funding for agencies and programs in three separate federal departments as well as for numerous related agencies.⁴ The Interior bill typically contains three primary titles. Title I provides funding for most Department of the Interior (DOI) agencies,⁵ many of which manage land and other natural resource or regulatory programs. Title II contains appropriations for the Environmental Protection Agency (EPA). Title III currently funds 20 agencies in other departments, such as the Forest Service in the Department of Agriculture and the Indian Health Service in the Department of Health and Human Services; arts and cultural agencies, such as the Smithsonian Institution; and various other entities. Title III of the bill is referred to as "Related Agencies." Selected major agencies in the Interior bill are briefly described below.

Title I. Department of the Interior

DOI's mission is to protect and manage the nation's natural resources and cultural heritage; provide scientific and other information about those resources; and exercise trust responsibilities and other commitments to American Indians, Alaska Natives, and affiliated island communities.⁶ There are eight DOI agencies and two other broad accounts funded in the Interior bill that carry out this mission. These agencies and broad accounts are referred to collectively hereinafter as the 10 DOI "agencies." DOI agencies funded in the Interior bill include the following:⁷

• The Bureau of Land Management administers about 248 million acres of public land, mostly in the West, for diverse uses such as energy and mineral development, livestock grazing, recreation, and preservation. The agency is also responsible for about 700 million acres of federal onshore subsurface mineral estate throughout the nation and supervises the mineral operations on about 56 million acres of Indian trust lands.
• The Fish and Wildlife Service administers 91 million acres of federal land⁸ within the National Wildlife Refuge System and other areas, including 77 million acres in Alaska. It also manages several large marine refuges and marine national monuments, sometimes jointly with other federal agencies. In addition, the Fish and Wildlife Service is the primary agency responsible for implementing the Endangered Species Act (16 U.S.C. §§1531 et seq.) through listing of species; consulting with other federal agencies; collaborating with private entities and state, tribal, and local governments; and other measures. It is also the primary agency responsible for promoting wildlife habitat; enforcing federal wildlife laws; supporting wildlife and ecosystem science; conserving migratory birds; administering grants to aid state fish and wildlife programs; and coordinating with state, international, and other federal agencies on fish and wildlife issues.
• The National Park Service administers 80 million acres of federal land within the National Park System, which includes 417 diverse units in the 50 states, District of Columbia, and U.S. territories. Roughly two-thirds of the system's lands are in Alaska. The National Park Service has a dual mission—to preserve unique resources and to provide for their enjoyment by the public. The agency also supports and promotes some resource conservation activities outside the Park System through grant and technical assistance programs and cooperation with partners.
• The U.S. Geological Survey is a science agency that provides physical and biological information related to geological resources; climate and land use change; natural hazards; and energy, mineral, water, and biological sciences and resources. In addition, it is the federal government's principal civilian mapping agency and a primary source of data on the quality of the nation's water resources.
• The Bureau of Ocean Energy Management manages development of the nation's offshore conventional and renewable energy resources in the Atlantic, the Pacific, the Gulf of Mexico, and the Arctic. These resources are in areas covering approximately 1.7 billion acres located beyond state waters, mostly in the Alaska region (more than 1 billion acres) but also off all coastal states.
• The Bureau of Safety and Environmental Enforcement provides regulatory and safety oversight for resource development in the outer continental shelf. Among its responsibilities are oil and gas permitting, facility inspections, environmental compliance, and oil spill response planning.
• The Office of Surface Mining Reclamation and Enforcement works with states and tribes to reclaim abandoned coal mines. The agency also regulates active coal mines to minimize environmental impacts during mining and to reclaim affected lands and waters after mining.
• Indian Affairs agencies provide and fund a variety of services to federally recognized American Indian and Alaska Native Tribes and their members. Historically, these agencies have taken the lead in federal dealings with tribes. The Bureau of Indian Affairs is responsible for programs that include government operations, courts, law enforcement, fire protection, social programs, roads, economic development, employment assistance, housing repair, irrigation, dams, Indian rights protection, implementation of land and water settlements, and management of trust assets (real estate and natural resources). The Bureau of Indian Education funds an elementary and secondary school system, institutions of higher education, and other educational programs.⁹

Title II. Environmental Protection Agency

EPA's mission is to protect human health and the environment. Primary responsibilities include the implementation of federal statutes regulating air quality, water quality, pesticides, toxic substances, management and disposal of solid and hazardous wastes, and cleanup of environmental contamination. EPA also awards grants to assist states and local governments in implementing federal law and complying with federal requirements to control pollution.¹⁰

Title III. Related Agencies

There are 20 agencies, organizations, and other entities funded by Title III of the Interior bill, collectively referred to hereinafter as the 20 "Related Agencies." Among the Related Agencies funded in the Interior bill, roughly 95% of the funding is typically provided to the following:

• The Forest Service in the Department of Agriculture manages 193 million acres of the National Forest System—consisting of national forests, national grasslands, and other areas—in 43 states, the Commonwealth of Puerto Rico, and the Virgin Islands. It also provides technical and financial assistance to states, tribes, and private forest landowners and conducts research on sustaining forest resources for future generations.
• The Indian Health Service in the Department of Health and Human Services provides medical and environmental health services for more than 2 million American Indians and Alaska Natives. Health care is provided through a system of facilities and programs operated by the agency, tribes and tribal organizations, and urban Indian organizations. The agency operates 26 hospitals, 59 health centers, and 32 health stations. Tribes and tribal organizations, through Indian Health Service contracts and compacts, operate another 19 hospitals, 284 health centers, 79 health stations, and 163 Alaska Native village clinics. Urban Indian organizations operate 34 ambulatory or referral programs.¹¹
• The Smithsonian Institution is a museum and research complex consisting of 19 museums and galleries, the National Zoo, and nine research facilities throughout the United States and around the world.¹² Established by federal legislation in 1846 with the acceptance of a trust donation by the institution's namesake benefactor, the Smithsonian is funded by both federal appropriations and a private trust.
• The National Endowment for the Arts and the National Endowment for the Humanities make up the National Foundation on the Arts and the Humanities. The National Endowment for the Arts is a major federal source of support for all arts disciplines. Since 1965, it has awarded more than 145,000 grants, which have been distributed to all states. The National Endowment for the Humanities generally supports grants for humanities education, research, preservation, and public humanities programs; creation of regional humanities centers; and development of humanities programs under the jurisdiction of state humanities councils. Since 1965, it has awarded approximately 63,000 grants. It also supports a Challenge Grant program to stimulate and match private donations in support of humanities institutions.

FY2017 Appropriations

Components of President Obama's Request

For FY2017, President Obama requested $33.18 billion for the approximately 30 agencies and entities typically funded in the annual Interior, Environment, and Related Agencies appropriations bill. For the 10 major DOI agencies in Title I of the bill, the request was $12.24 billion, or 36.9% of the total requested. For EPA, funded in Title II of the bill, the request was $8.27 billion, or 24.9% of the total. For the 20 agencies and other entities currently funded in Title III of the bill, the request was $12.67 billion, or 38.2% of the total.

The President's request included a proposal for a new adjustment to the discretionary spending limits in law that would provide an additional $1.15 billion for wildfire suppression for FY2017.¹³ Of the total proposed adjustment for FY2017, $290.0 million was for DOI Wildland Fire Management and $864.1 million was for Forest Service Wildland Fire Management.

Appropriations for agencies vary widely for reasons relating to the number, breadth, and complexity of agency responsibilities; alternative sources of funding (e.g., mandatory appropriations); and Administration and congressional priorities, among other factors. Thus, although the President's FY2017 request covered approximately 30 agencies, funding for a small subset of these agencies accounted for most of the total. For example, the requested appropriations for three agencies—EPA, Forest Service, and Indian Health Service—were nearly three-fifths (57.9%) of the total request. Further, more than three-quarters (76.0%) of the request was for these three agencies and two others, National Park Service and Indian Affairs.

For DOI agencies, the FY2017 requests ranged from $80.2 million for the Bureau of Ocean Energy Management to $3.10 billion for the National Park Service. The requests for 6 of the 10 agencies exceeded $1 billion. Nearly half (49.3%) of the $12.24 billion requested for DOI agencies was for two agencies—Indian Affairs ($2.93 billion) and the National Park Service.

For Related Agencies in Title III, the requested funding levels exhibited even more variation. The President sought amounts ranging from $1.4 million for grants under National Capital Arts and Cultural Affairs to $5.74 billion for the Forest Service. The Indian Health Service would be the only other agency to receive more than $5 billion. The next-largest request was for the Smithsonian Institution, at $922.2 million. By contrast, 14 agencies would receive less than $80 million each, including 5 with appropriations of less than $10 million each.

Figure 1 identifies the share of the President's request for particular agencies in the Interior bill. Table 1, at the end of this report, contains the amount requested by the President for FY2017 for each agency, FY2016 enacted appropriations for each agency, the percentage change between FY2016 enacted appropriations and the President's request for FY2017, the appropriations included in H.R. 5538 (114^th Congress) as passed the House, and the appropriations contained in S. 3068 (114^th Congress) as reported by the Senate Appropriations Committee.

Figure 1. Components of the President Obama's FY2017 Request for Interior, Environment, and Related Agencies

Source: Prepared by CRS with data from the House Appropriations Committee. Notes: Agencies shown in shades of brown and yellow are in the Department of the Interior, Title I of the bill. The Environmental Protection Agency, shown in blue, is Title II of the bill. Agencies shown in shades of green are Related Agencies, Title III of the bill.

FY2017 President Obama's Request Compared with FY2016 Enacted Appropriations

The President's request of $33.18 billion for FY2017 would have been an increase of $250.6 million (0.8%) over the total FY2016 enacted appropriations of $32.93 billion. This FY2016 total includes $700.0 million in emergency funding for Wildland Fire Management by the Forest Service (P.L. 114-53, Section 135).¹⁴ These funds were provided for urgent fire suppression, but also could be transferred to other accounts to repay monies that had been borrowed for fire suppression. Unlike the President's FY2017 request, the FY2016 enacted appropriations did not include a cap adjustment to discretionary spending limits in law (for Wildland Fire Management).

The FY2016 appropriations included $452.0 million for the Payments in Lieu of Taxes (PILT) program, whereas the President did not seek discretionary funding for PILT for FY2017. Instead, the President supported mandatory funding for PILT for FY2017, which would require a change in law. PILT compensates counties and local governments for nontaxable lands within their jurisdictions.¹⁵

Under the President's proposal, the total for two of the three titles of the bill would have increased by different amounts. DOI agencies would have received an increase of $225.8 million (1.9%) and funding for EPA would have increased by $127.3 million (1.6%). However, the total for all Related Agencies in Title III would have decreased by $102.5 million (0.8%).

With regard to DOI, the President proposed increases above FY2016 enacted levels for 8 of the 10 agencies. The increases varied in dollar amount and percentage of appropriations, with the lowest dollar increase of $6.0 million (8.0%) for the Bureau of Ocean Energy Management and the highest of $250.2 million (8.8%) for the National Park Service. Some of the National Park Service increase was intended to enhance park units in light of the agency's 2016 centennial. Activities receiving additional funds included repair, rehabilitation, and maintenance of facilities; line item construction; visitor services for young people and families; historic preservation; and the Centennial Challenge program (a federal matching program to leverage donations for park units).

In addition to the National Park Service, three other DOI agencies would have received increases of more than $100.0 million under the President's request. Proposed increases were as follows: Department-Wide Programs, $170.3 million (15.8%); Indian Affairs, $137.6 million (4.9%); and U.S. Geological Survey, $106.8 million (10.1%). Under Department-Wide Programs, Wildland Fire Management on DOI lands received the largest increase. The second-largest increase was for the Working Capital Fund, primarily for cybersecurity and DOI compliance with the Digital Accountability and Transparency Act of 2014 (DATA Act, P.L. 113-101). For Indian Affairs, the President requested increases for many activities, among them education, natural resource management, and social services. For the U.S. Geological Survey, the President requested additional funds across agency activities, including ecosystems, climate and land use change, natural hazards, water resources, and facilities.

Two DOI agencies, Departmental Offices and the Office of Surface Mining Reclamation and Enforcement, would have received decreased appropriations under the President's FY2017 request. For Departmental Offices, the decrease was primarily because the President did not seek discretionary funding under this account for PILT, as noted. For the Office of Surface Mining Reclamation and Enforcement, the decrease was primarily because the President did not request to continue the FY2016 appropriation of $90.0 million for grants to three states for reclamation of abandoned mine lands, together with economic and community development activities.

Within the overall increase for EPA, the President sought additional funds for each of the agency's accounts except State and Tribal Assistance Grants. The $239.2 million (9.2%) increase for the Environmental Programs and Management account was the largest overall dollar increase proposed for EPA accounts. This account funds a broad array of activities supporting EPA's development and enforcement of pollution-control regulations and standards, technical assistance, and administrative and operational expenses. The $40.2 million (3.7%) increase for the Hazardous Substance Superfund account was the second-largest overall dollar increase for EPA accounts. This account supports the assessment and cleanup of sites contaminated from the release of hazardous substances. EPA administers these activities under the Superfund program, as authorized in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA; 42 U.S.C. §§9601 et seq.).¹⁶ The President also sought $50.0 million for the Water Infrastructure Finance and Innovation Program, through a proposed new account to consolidate resources for loans to improve water infrastructure.¹⁷

The overall decrease from FY2016 enacted levels proposed for EPA's account for State and Tribal Assistance Grants ($237.8 million, or 6.8%) included both decreases and increases for programs within the account. For instance, grants to states for wastewater infrastructure projects through the Clean Water State Revolving Fund would have declined by $414.4 million (29.7%), whereas funding for drinking water infrastructure grants to states through the Drinking Water State Revolving Fund would have increased by $157.3 million (18.2%).

Thirteen of the 20 Title III agencies would have received increases over FY2016 enacted levels under the President's FY2017 proposal, and two of the three largest agencies would have received the biggest dollar increases. Specifically, the President sought an additional $377.4 million (7.9%) for the Indian Health Service and $82.0 million (9.8%) for the Smithsonian Institution. The Indian Health Service increases were for many programs and activities, including hospitals and health clinics, mental health, alcohol and substance abuse, contract support costs, and construction of health care and other facilities. The Smithsonian Institution's additional funds were to be directed to facilities maintenance, operations, security, and construction, among other purposes. By contrast, two Title III agencies would have received level funding and five agencies would have received decreases. The President proposed the largest dollar decrease for the Forest Service—a $623.9 million (9.8%) reduction—primarily through lower funding for Wildand Fire Management for FY2017. This was largely because the FY2016 total reflects the enactment of additional emergency appropriations for Wildland Fire Management

Comparison of FY2017 Bills Passed by the House and Reported by the Senate Appropriations Committees

H.R. 5538, as passed by the House on July 14, 2016, would have provided $32.15 billion for Interior, Environment, and Related Agencies for FY2017. S. 3068, as reported by the Senate Appropriations Committee on June 16, 2016, would have provided $32.76 billion for Interior, Environment, and Related Agencies. Both bills included $480.0 million for PILT. The House-passed bill included this funding in the DOI Departmental Offices account, with funding for the Office of the Secretary. The Senate included PILT funding in the Department-Wide Programs account. See Table 1 for the House-passed and Senate committee-reported funding levels for each title and agency in the Interior bill.

The bills differed in the amount and type of funding for addressing wildland fires. Overall, the Senate bill contained $521.6 million (13.3%) more than the House bill. The Senate bill contained a total of $4.45 billion for Wildland Fire Management, composed of $1.11 billion for DOI and $3.33 billion for the Forest Service. The Senate total included $661.3 million in emergency appropriations for managing wildland fires, with $171.3 million for DOI and $490.0 million for the Forest Service. Such emergency funding typically does not count toward a subcommittee's allocation for the bill.¹⁸ The House-passed bill did not include emergency appropriations, but instead provided a portion of the funding through the FLAME Wildfire Suppression Reserve Accounts. It contained a total of $3.92 billion for managing wildland fires, with $943.9 million for DOI and $2.98 billion for the Forest Service.

The inclusion of emergency appropriations in the Senate committee-reported bill contributed to a larger overall appropriation in S. 3068 than in H.R. 5538. The Senate bill was $615.7 million (1.9%) more than the House-passed bill. Similarly, the emergency funding was a factor in the larger appropriations in S. 3068 for DOI agencies ($151.1 million, 1.2% higher), the Forest Service ($307.3 million, 5.7% higher), and Title III agencies overall ($224.0 million, 1.8% higher).

The Senate committee-reported bill also contained higher amounts than H.R. 5538 for some other major agencies, including EPA ($240.6 million, 3.1% higher). While the measures included differing amounts for many EPA accounts, more funding in the Senate bill for the Environmental Programs and Management account and the Clean Water State Revolving Fund (SRF, in the State and Tribal Assistance Grants account) contributed to the overall higher Senate bill total. However, the House bill provided higher funding for some agencies than the Senate measure. For instance, it would have funded the Indian Health Service at $5.08 billion, which was $84.9 million (1.7%) more than the $4.99 billion in S. 3068. The House bill had higher appropriations for clinical services, among other Indian Health Service programs.

FY2017 Bills Compared with FY2016 Appropriations

Both H.R. 5538 as passed by the House and S. 3068 as reported from the Senate Appropriations Committee would provide lower appropriations than enacted for FY2016 ($32.93 billion). One contributor to the lower overall bill totals was lower funding for wildland fires relative to the FY2016 enacted level ($4.90 billion). As noted, the FY2016 total appropriation included $700.0 million in additional, emergency funding for Forest Service Wildland Fire Management. For both DOI and Forest Service wildfires, H.R. 5538 had $978.4 million (20.0%) less than FY2016 appropriations, whereas S. 3068 contained $456.8 million (9.3%) less than the FY2016 level.

Like the FY2016 appropriation, the House and Senate bills contained discretionary funding for PILT. PILT would have received a $28.0 million (6.2%) increase under both bills, from $452.0 million in FY2016 to $480.0 million in FY2017.

H.R. 5538 Compared with FY2016 Appropriations

The $32.15 billion for FY2017 in H.R. 5538, as passed by the House, was $779.3 million (2.4%) less than the FY2016 appropriation of $32.93 billion. DOI agencies, however, would have received an overall increase of $112.7 million (0.9%) for FY2017, with 6 of the 10 DOI agencies sharing in the increase. The largest recommended dollar increase was $78.8 million (2.8%) for the National Park Service, with increases for facility operations and maintenance, construction, the Historic Preservation Fund, the Centennial Challenge federal matching program, and other activities. The next largest dollar increase was $73.8 million (2.6%) for Indian Affairs, with increases for human services, elementary and secondary education programs, and other programs.

H.R. 5538 would have reduced EPA funding by $271.8 million (3.3%) relative to FY2016 appropriations. The account with the largest dollar decline was Environmental Programs and Management, with $207.2 million (7.9%) less than FY2016. Programs in the account that would have been reduced included clean air and climate; enforcement; information exchange and outreach; and legal, science, regulatory, and economic review. The EPA account with the second-largest reduction was State and Tribal Assistance Grants, with $147.4 million (4.2%) less than FY2016, largely from lower funds for grants to states through the Clean Water SRF. In contrast, the House bill increased appropriations for the Drinking Water SRF, and provided $50.0 million for a new account to fund the Water Infrastructure Finance and Innovation Act (WIFIA) Program.

Title III agencies would have received an overall decrease of $620.2 million (4.9%) for FY2017 under H.R. 5538. The largest dollar reduction—of $926.6 million (14.6%)—was to go to the Forest Service, largely from lower funding for Wildland Fire Management.¹⁹ A total of three agencies would have received lower amounts than enacted in FY2016, and eight others would have received level funding. Funds for nine agencies would have increased, with the largest dollar amount—$271.0 million (5.6%)—for the Indian Health Service. Additional funds were included for clinical services, such as hospital and health clinics, contract support costs, and construction of health care and other facilities.

S. 3068 Compared with FY2016 Appropriations

With regard to the Senate bill, the $32.76 billion for Interior, Environment, and Related Agencies was $163.6 million (0.5%) less than FY2016 appropriations of $32.93 billion. DOI agencies, however, would have received an overall increase of $263.8 million (2.2%) for FY2017, with 6 of the 10 DOI agencies sharing in the increase. The largest recommended dollar increase in S. 3068 was $600.2 million (55.6%) for Department-Wide Programs, whereas the largest recommended dollar decrease was $449.9 million (41.7%) for Departmental Offices. These differences primarily resulted from funding PILT through different accounts—under Departmental Offices in FY2016 but under Department-Wide Programs in S. 3068. Within the Department-Wide Programs account, the Senate bill also contained an additional $120.2 million (12.1%) for DOI Wildland Fire Management. The Senate bill also included increases over the FY2016 level of $62.7 million (2.2%) for the National Park Service and $58.5 million (2.1%) for Indian Affairs.

S. 3068 would have funded EPA at $31.2 million (0.4%) less than the FY2016 appropriation. The EPA account with the largest dollar decrease was Environmental Programs and Management, with $75.1 million (2.9%) less than FY2016. As with the House bill, programs in the account that were reduced included clean air and climate; enforcement; information exchange and outreach; and legal, science, regulatory, and economic review. Funding in the account for water quality protection also declined. The EPA account with the largest dollar increase in S. 3068 was State and Tribal Assistance Grants, with $95.2 million (2.7%) more than FY2016 appropriations. While funding for some programs in the account would have increased, such as for the Drinking Water SRF and certain categorical grants, funding for other programs would have been reduced, such as for the Clean Water SRF, diesel emission grants, and multi-purpose grants. The Senate bill also provided $30.0 million for a new account to fund the WIFIA Program.

Title III agencies would have decreased by $396.2 million (3.1%) in FY2017 under S. 3068. The largest dollar reduction—of $619.4 million (9.7%)—was for the Forest Service, largely from lower funding for wildland fires. A total of three agencies would have received lower amounts than enacted in FY2016, and eight others would have received level funding. Funds for nine agencies would have increased, with the largest amount—of $186.2 million (3.9%)—for the Indian Health Service. Additional funds were included for clinical services (such as hospital and health clinics, mental health, and alcohol and substance abuse), contract support costs, and construction of facilities.

FY2017 Bills Compared with President Obama's FY2017 Request

Both the House-passed and Senate committee-reported bills contained lower funding for FY2017 than sought by the President. This was the case although the President's request did not include discretionary appropriations for PILT, whereas the House and Senate bills contained $480.0 million for the program. As noted, the Administration instead sought mandatory funding for PILT. Among other differences, the President sought at least $100.0 million more than either bill provided for each of the following agencies: National Park Service, EPA, and Indian Health Service.

The President and the House and Senate bills proposed somewhat different ways of funding wildland fires in FY2017. Neither the House nor the Senate legislation included funding for Wildland Fire Management through a new adjustment to the discretionary spending limits in law, as proposed by the President. However, the Senate bill contained provisions (Title V) to enact such a structure, and the House Appropriations Committee expressed support for such a budgetary adjustment mechanism.²⁰ Only the House bill provided a portion of wildland fire funding through the FLAME Wildfire Suppression Reserve Accounts, and only the Senate bill provided a portion of wildfire funding as emergency appropriations.

H.R. 5538 Compared with President Obama's FY2017 Request

The $32.15 billion for FY2017 in H.R. 5538, as passed by the House, was $1.03 billion (3.1%) lower than the President's FY2017 requested appropriations of $33.18 billion. The House bill contained less funding than the request for each of the three titles of the bill. DOI agencies would have received $113.1 (0.9%) less, with lower appropriations for 8 of the 10 agencies. The largest dollar decrease was $220.1 million (17.6%) for Department-Wide Programs, with each major activity in the account accorded lower funding. The next largest dollar decrease in the House bill—$171.4 million (5.5%)—was for the National Park Service. However, the House-passed bill would have provided $440.3 million (68.1%) more than sought by the President for Departmental Offices, due to the inclusion of funding for PILT in this account. H.R. 5538 also contained $93.7 million (59.3%) more than requested for the Office of Surface Mining Reclamation and Enforcement. The House bill, unlike the President's request, would have funded grants to states for reclamation of abandoned mines with economic and community development and reuse purposes.

EPA funding would have been $399.1 million (4.8%) lower under the House bill than requested by the President for FY2017. H.R. 5538 provided the Environmental Programs and Management account with $446.4 million (15.6%) less than the President's request. Programs in the account that would have received lower funding included clean air and climate; enforcement; information exchange and outreach; IT, data management, and security; legal, science, regulatory, and economic review; and operations and administration. Not all accounts would have received less funding under the House bill. For instance, the State and Tribal Assistance Grants account would have been funded at $90.3 million (2.8%) more under H.R. 5538, with higher amounts for a variety of infrastructure assistance grants—the Drinking Water and Clean Water SRFs, diesel emission grants, and targeted air shed grants.

Under H.R. 5538, Title III agencies would have been funded at $517.7 million (4.1%) less for FY2017 than sought by the President. While the bill contained level funding for 8 agencies and increases for 3, 9 of the 20 agencies in Title III would have received lower funds, with the largest dollar reductions for the three largest agencies. For the Forest Service, the House bill included $302.7 million (5.3%) less than the Administration requested, primarily from lower funding for Wildland Fire Management. H.R. 5538 would have funded the Indian Health Service at $106.4 million (2.1%) less than the request, with lower amounts for clinical services, including hospital and health clinics, and construction of health care facilities. The House bill contained $58.9 million (6.4%) less than the request for the Smithsonian Institution, mainly due to lower funding for salaries and expenses for museums and research institutes, and for facilities-related programs, including maintenance; operations, security, and support; and planning and design. Additionally, the House bill would not have funded the Dwight D. Eisenhower Memorial Commission, for which the President requested a total of $44.8 million, primarily to construct a memorial.

S. 3068 Compared with President Obama's FY2017 Request

The $32.76 billion total in S. 3068 was $414.2 million (1.2%) less than the Administration's request of $33.18 billion. Nevertheless, S. 3068 would have increased DOI agencies by $38.0 million (0.3%) for FY2017, primarily because the bill contained discretionary funding for PILT whereas the President's request did not. Specifically, for the account that would fund PILT—Department-Wide Programs—S. 3068 contained $429.9 million (34.4%) more than the President sought. S. 3068 also included $78.9 million (50.0%) more than requested for the Office of Surface Mining Reclamation and Enforcement. Like the House bill, S. 3068 would have funded grants to states for reclamation of abandoned mines with economic and community development and reuse purposes; the President did not request funds for this purpose. The other eight agencies in Title I would have received lower appropriations under S. 3068 than requested by the President. The largest dollar decrease in the Senate bill—$187.5 million (6.0%)—was for the National Park Service, with lower appropriations than requested for visitor services, facility operations and maintenance, the Historic Preservation Fund, construction, and other programs.

The Senate bill contained $158.5 million (1.9%) less for EPA than the President sought for FY2017. The EPA account with the largest dollar decrease was Environmental Programs and Management, with $314.3 million (11.0%) less than the Administration's request. As with the House bill, programs in the account that received lower funding under S. 3068 included clean air and climate; enforcement; information exchange and outreach; IT, data management, and security; legal, science, regulatory, and economic review; and operations and administration. Some accounts would have received more funds under S. 3068 than requested. As with the House bill, the EPA account with the largest dollar increase was State and Tribal Assistance Grants, with $332.9 million (10.1%) more than requested by the President for FY2017. Higher funding would have been directed to the Clean Water SRF and other infrastructure assistance grants, among other programs.

Title III agencies would have received $293.6 million (2.3%) less for FY2017 under S. 3068 than under the President's request for FY2017. Nine of the 20 agencies in Title III would have received lower funding. The largest dollar difference was with regard to the Indian Health Service. S. 3068 provided $191.2 million (3.7%) less than requested, with lower funds for clinical services, including hospital and health clinics, and construction of health care facilities, among other programs. The Senate bill also contained $62.0 million (6.7%) less than the request for the Smithsonian Institution, mainly due to lower funding for various facilities-related programs, including maintenance; operations, security, and support; revitalization; and planning and design. Additionally, S. 3068 did not fund construction of a memorial to Dwight D. Eisenhower, while continuing appropriations for salaries and expenses of the memorial commission. The President had sought $43.0 million for capital construction, in addition to funding for salaries and expenses of the commission. S. 3068 contained higher funds than requested for four agencies, and the bill and the request included the same amount for another seven agencies. Only the Senate bill contained funding ($2.0 million) for the Women's Suffrage Centennial Commission, which would have been established by the bill.

FY2017 Continuing Appropriations

Continuing funds were provided for FY2017 through April 28, 2017, under the Further Continuing Appropriations Act, 2017 (CR; Division A, P.L. 114-254). Continuing appropriations were provided because no regular appropriations for Interior, Environment, and Related Agencies were enacted before the start of the 2017 fiscal year on October 1, 2016. The CR generally provided funding at the FY2016 level (in Division G, P.L. 114-113), minus an across-the-board reduction of 0.1901% for the period covered. It also generally provided funds for continuing projects and activities, under the same authority and conditions and to the same extent and manner, as for FY2016.²¹

An earlier CR, the Continuing Appropriations Act, 2017 (Division C, P.L. 114-223), provided continuing appropriations through December 9, 2016. That CR also generally provided funding for Interior, Environment, and Related Agencies at the FY2016 level, but with an across-the-board reduction of 0.496%.²²

The first and the second CR each contained five exceptions related to Interior, Environment, and Related Agencies. These 10 "anomalies" changed the purposes or amounts of funds, extended expiring provisions of law, or made other changes in existing law, as follows:²³

• Section 133 extended, through September 30, 2018, the authority in the Federal Lands Recreation Enhancement Act for five agencies to establish, collect, and retain recreation fees on federal recreational lands and waters.²⁴
• Section 134 extended, through the duration of the CR, the Dwight D. Eisenhower Memorial Commission's authorization to establish a "permanent" memorial to President Eisenhower in the District of Columbia. It also suspended language in the FY2016 appropriations law that prohibits the Secretary of the Interior, during FY2016, from issuing a construction permit to build the Eisenhower Memorial until 100% of the necessary funds are raised.²⁵
• Section 135 provided $26.0 million for the Bureau of Land Management to process, at the start of FY2017, new applications for permits to drill on federal and Indian land. The $26.0 million in up-front revenue would be offset by an equal amount later, as application fees are collected throughout the year.²⁶
• Section 136 increased funding for the National Park Service by $4.2 million to support security and visitor safety activities related to the presidential inaugural ceremonies in January 2017.²⁷
• Section 137 provided EPA with an additional $3.0 million for FY2017, within the Environmental Programs and Management account, for operations and necessary expenses of activities as defined in §26(b)(1) of the Toxic Substances Control Act (TSCA).²⁸ It also authorized fees collected in FY2017 and credited to the TSCA Service Fee Fund to be counted as discretionary offsetting receipts toward the $3.0 million appropriation.
• Section 164 authorized the apportionment of appropriations that are provided by the CR up to the rate that is necessary for staffing, maintenance, security, and administrative expenses of recently reopened galleries of the National Gallery of Art.
• Section 165 authorized the apportionment of appropriations that are provided by the CR up to the rate that is necessary for maintenance and operation of facilities, security, and support at the new National Museum of African American History and Culture.
• Section 166 authorized the apportionment of appropriations that are provided by the CR up to the rate that is necessary for operating and staffing newly constructed Indian Health Service facilities. It allowed for higher rates of funding than otherwise would be provided under the CR to operate and provide health services at newly constructed facilities (e.g., at new medical facilities).
• Section 196(a) provided an additional $100 million within EPA's State and Tribal Assistance Grants account for making capitalization grants for the Drinking Water State Revolving Fund (DWSRF) pursuant to Section 2201 of the Water and Waste Act of 2016.²⁹ Section 2201 authorized funding to be made available to a state—subject to a presidential emergency declaration regarding lead or other contaminants in drinking water—to provide assistance to an eligible water system to address such contamination (e.g., Flint, Michigan).³⁰
  Section 196(b) amended Division G of P.L. 114-113 to allow states to use DWSRF funding to provide additional subsidies (e.g., grants and forgiveness of principal) to water systems for debt incurred prior to the enactment of P.L. 114-113, under specified terms and conditions.
• Section 197 appropriated $20 million to EPA for the cost of direct loans and guaranteed loans for water infrastructure projects as authorized under the Water Infrastructure Finance and Innovation Act (WIFIA) of 2014, which authorized EPA's WIFIA program.³¹ Additionally, Section 197 required fees collected pursuant to Sections 5929 and 5030 of WIFIA to be credited to the appropriations made by this section.

Author Contact Information

Key Policy Staff

Footnotes

1.	As used in this report, "President" refers to President Obama.
2.	For selected relevant reports, see Congressional Research Service, "Interior & Environment Appropriations," at http://www.crs.gov/search/#/0?termsToSearch=Interior%20%26%20Environment%20Appropriations&orderBy=Date&navIds=4294930742.
3.	Hereinafter, the annual Interior, Environment, and Related Agencies appropriations bill is sometimes referred to as the Interior bill.
4.	Many of the agencies that receive discretionary appropriations through the Interior bill also receive mandatory appropriations under various authorizing statutes. This report does not address mandatory appropriations.
5.	The exceptions are the Bureau of Reclamation and the Central Utah Project, which receive appropriations through Energy and Water Development appropriations laws. For information on FY2017 appropriations for these entities, see CRS Report R44465, Energy and Water Development: FY2017 Appropriations, by [author name scrubbed].
6.	This statement is taken from the Department of the Interior (DOI) website at http://www.doi.gov/whoweare/mission-statement.cfm.
7.	In addition, Interior appropriations bills provide funding within two broad DOI accounts covering diverse programs. The Departmental Offices account funds the Office of the Secretary (including the Office of Natural Resources Revenue), Insular Affairs, Office of the Solicitor, Office of Inspector General, and Office of the Special Trustee for American Indians. Discretionary appropriations for the Payments in Lieu of Taxes (PILT) program are also shown within this account for FY2016. The Department-Wide Programs account funds DOI Wildland Fire Management, the Central Hazardous Materials Fund, the Natural Resource Damage Assessment Fund, and the Working Capital Fund.
8.	This is the acreage over which the Fish and Wildlife Service has primary jurisdiction in the United States and the territories, but excluding acreage in marine national monuments.
9.	Hereinafter in this report, "Indian Affairs" refers to the Bureau of Indian Affairs and the Bureau of Indian Education.
10.	For information on FY2016 and FY2017 appropriations for the Environmental Protection Agency beyond that contained in this report, see CRS Report R44208, Environmental Protection Agency (EPA): FY2016 Appropriations, by [author name scrubbed] and [author name scrubbed] and CRS In Focus IF10383, U.S. Environmental Protection Agency (EPA): FY2017 President's Budget Request, by [author name scrubbed] and [author name scrubbed].
11.	Department of Health and Human Services, Indian Health Service, "IHS 2016 Profile," September 2016, at https://www.ihs.gov/newsroom/index.cfm/factsheets/ihsprofile/. For additional information on the agency, see CRS Report R43330, The Indian Health Service (IHS): An Overview, by [author name scrubbed].
12.	These statistics are from the Smithsonian Institution's website at http://www.si.edu/About.
13.	Budget authority designated for certain purposes would cause the limits to be adjusted, making such authority effectively not subject to the limits. The President sought a new cap adjustment for some of the costs of wildland fire management. For additional information on appropriations for wildland fire management beyond that contained in this report, including on the proposed cap adjustment, see CRS Report R44082, Wildfire Suppression Spending: Background, Issues, and Legislation, by [author name scrubbed], [author name scrubbed], and [author name scrubbed].
14.	The FY2016 total of $32.93 billion, including the $700.0 million in emergency appropriations for Forest Service Wildland Fire Management, is used throughout this report.
15.	See CRS Report RL31392, PILT (Payments in Lieu of Taxes): Somewhat Simplified, by [author name scrubbed] and [author name scrubbed], for additional information on PILT beyond that contained in this report.
16.	The Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA; 42 U.S.C. §§9601 et seq.) requires responsible parties to pay for the cleanup of environmental contamination and authorizes the cleanup of sites where the responsible parties cannot pay or cannot be found.
17.	The program was funded in FY2016 through the Environmental Programs and Management account.
18.	Both the House and Senate Appropriations Committees report "302(b)" allocations for the House and Senate Interior Appropriations Subcommittees (and other appropriations subcommittees). These allocations function as ceilings on the Interior bill. For the Senate Interior Subcommittee for FY2017, the discretionary allocation was $32.03 billion and the total allocation (including mandatory budget authority) was $32.10 billion. For instance, see the most recent Senate allocations in S.Rept. 115-1, issued on January 17, 2017. The House Interior Subcommittee operated under an interim allocation for FY2017; the discretionary allocation was $32.10 billion and the total allocation (including mandatory budget authority) was $32.16 billion. See H.Rept. 114-632 on H.R. 5538, June 21, 2016. For an overview of 302(b) allocations, see CRS Report RS20144, Allocations and Subdivisions in the Congressional Budget Process, by [author name scrubbed]
19.	As noted, the total FY2016 appropriation included $700 million in additional, emergency funding for Wildland Fire Management by the Forest Service.
20.	H.Rept. 114-632 on H.R. 5538, p. 4.
21.	For an overview of the general provisions of the CR that establish the coverage, duration, and rate of spending, and of the exceptions to these general provisions, see CRS Report R44723, Overview of Further Continuing Appropriations for FY2017 (H.R. 2028), coordinated by [author name scrubbed].
22.	For an overview of the general provisions of the CR that establish the coverage, duration, and rate of spending, and of the exceptions to these general provisions, see CRS Report R44653, Overview of Continuing Appropriations for FY2017 (H.R. 5325), coordinated by [author name scrubbed].
23.	The first five anomalies, Sections 133-137, were included in the first CR—P.L. 114-223. The next five anomalies, Sections 164-166 and Sections 196-197, were added in the second CR—P.L. 114-254.
24.	The Federal Lands Recreation Enhancement Act is codified at 16 U.S.C. §§6801-6814. For additional background on the program, see CRS In Focus IF10151, Federal Lands Recreation Enhancement Act: Overview and Issues, by [author name scrubbed].
25.	The pertinent language in the FY2016 appropriations law is contained in P.L. 114-113, Division G, §419(b). For more information on the Dwight D. Eisenhower Memorial, see CRS Report R43744, Monuments and Memorials Authorized Under the Commemorative Works Act in the District of Columbia: Current Development of In-Progress and Lapsed Works, by [author name scrubbed].
26.	For additional information on applications for permits to drill and other issues related to oil and gas development on federal and nonfederal lands, see CRS Report R42432, U.S. Crude Oil and Natural Gas Production in Federal and Nonfederal Areas, by [author name scrubbed].
27.	For more information on NPS appropriations by account and related issues, see CRS Report R42757, National Park Service: FY2017 Appropriations and Ten-Year Trends, by [author name scrubbed].
28.	15 U.S.C. 2625(b)(1).
29.	P.L. 114-322, Water Infrastructure Improvements for the Nation Act, Title II, Water and Waste Act of 2016.
30.	See CRS In Focus IF10577, Water Infrastructure Improvements for the Nation (WIIN) Act, P.L. 114-322: Drinking Water Provisions, by [author name scrubbed].
31.	P.L. 113-121, Water Resources Reform and Development Act of 2014, Title V, Subtitle C. 33 U.S.C. §§3901 et seq. For additional information on the program, see CRS Report R43315, Water Infrastructure Financing: The Water Infrastructure Finance and Innovation Act (WIFIA) Program, by [author name scrubbed].