Order Code RS20096
Updated January 14, 2000
CRS Report for Congress
Received through the CRS Web
The Natural Resources and Environment
Function in the FY2000 Federal Budget:
A Description of Programs and Funding
David M. Bearden
Environmental Information Analyst
Resources, Science, and Industry Division
Summary
Function 300 of the federal budget funds activities related to natural resources and
the environment and includes five subfunctions for water resources, conservation and
land management, recreational resources, pollution control and abatement, and research
and technical support. For these activities, the Administration requested $23.95 billion
in budget authority and $23.75 billion in outlays for FY2000. To remain within the
discretionary spending caps, the FY2000 budget resolution assumed lower funding levels
for Function 300 than the Administration requested. The House passed the conference
report on the FY2000 budget resolution ( H.Con.Res. 68, H.Rept. 106-91) on April 14,
1999, and the Senate passed it on April 15, 1999. The conference committee adopted
the House’s proposal of $22.80 billion in budget authority and $22.60 billion in outlays
for Function 300. The Senate had proposed lower funding levels of $21.70 billion in
budget authority and $22.40 billion in outlays. The conference committee also adopted
the sense of the Senate on prohibiting the use of federal funding to reduce greenhouse
gas emissions under the Kyoto Protocol prior to Senate ratification. Based on the
amounts agreed upon in the budget resolution, the House and Senate Appropriations
Committees allocated funding for Function 300 to various federal agencies under six
separate appropriations bills.
Introduction
The federal budget is divided into 20 spending and revenue functions. Function 300
of the budget funds activities related to natural resources and the environment and includes
five subfunctions for water resources, conservation and land management, recreational
resources, pollution control and abatement, and research and technical support. According
to procedures established under the Congressional Budget and Impoundment Control Act
of 1974 (P.L. 93-344), the House and Senate Budget Committees are responsible for
developing a concurrent resolution on the budget that sets the level of budget authority
and outlays for the 20 budget functions and establishes funding assumptions which act as
Congressional Research Service ˜
The Library of Congress
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guidelines for spending and revenue.1 The figure below indicates the amount of budget
authority allocated for Function 300 from FY1995 to FY2000.
Budget Authority for Natural Resources and the Environment:
FY1995 to FY2000
Billions of Dollars*
30.00
24.48
23.94
23.95
23.11
22.80
25.00
21.03
21.61
20.00
15.00
10.00
5.00
0.00
1995
1996
1997
1998
1999
2000
2000
Request
Budget
*Amounts are in nominal dollars, not adjusted for inflation.
Resolution
Prepared by the Congressional Research Service with data from the Office of
Management and Budget.
To remain within the discretionary spending caps agreed to under the Budget
Enforcement Act of 1997 (P.L. 105-33, Title X), the FY2000 budget resolution assumed
lower funding levels for Function 300 than the Administration requested. On April 14,
1999, the House passed the conference report on the FY2000 budget resolution
(H.Con.Res. 68, H.Rept. 106-91), and the Senate passed it on April 15, 1999. The
conference committee adopted the House’s funding level of $22.80 billion in budget
authority for Function 300 in FY2000, about $1.10 billion more than the Senate’s amount
of $21.70 billion, roughly $1.15 billion less than the Administration’s request of $23.95
billion, and approximately $1.14 billion less than the FY1999 level of $23.94 billion in
budget authority. The conference committee also adopted the House’s proposal of $22.60
billion in outlays for Function 300, approximately $200 million more than the Senate’s
level of $22.40 billion, about $1.15 billion less than the Administration’s request of $23.75
billion, and roughly $1.66 billion less than the FY1999 level of $24.26 billion in outlays.
In addition to setting funding levels for Function 300, the conference report also included
the sense of the Senate on prohibiting the use of federal funding to reduce greenhouse gas
emissions under the Kyoto Protocol prior to Senate ratification. However, the conference
committee did not adopt the senses of the Senate on the Urban Parks and Recreation
Recovery program, the use of Outer Continental Shelf (OCS) revenues, or the Land and
Water Conservation Fund. Based on the amounts agreed upon in the FY2000 budget
resolution, the House and Senate Appropriations Committees allocated funding for
Function 300 to various federal agencies under six separate appropriations bills for
1 For further discussion, refer to CRS Report 98-721 GOV,
Introduction to the Federal Budget
Process, by Robert Keith.
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Agriculture, Commerce, Energy and Water Development, Interior, Transportation, and
VA-HUD-Independent Agencies.
This report describes the activities that fall under each subfunction of Function 300,
indicates the amount of budget authority and outlays that the President requested for
FY2000, lists the federal agencies that implement various programs, and discusses relevant
provisions in the FY2000 budget resolution.
Funding for Defense Cleanup and Environmental Programs
Function 300 does not include the roughly $10 billion for defense cleanup and
environmental programs, which falls under Function 50 for National Defense. The Department
of Defense operates six environmental programs to address cleanup, compliance, base closures,
pollution prevention, conservation, and environmental technology. The Department of Energy
manages defense nuclear waste and remediates contaminated sites. For further discussion,
refer to CRS Report RL30111,
Defense Cleanup and Environmental Programs:
Authorization and Appropriations for FY2000, by David M. Bearden.
Water Resources
The President’s budget proposed a decrease of $1.06 billion in budget authority for
water resources from $4.81 billion in FY1999 to $3.75 billion in FY2000, and projected
a decrease of $1.49 billion in outlays from $5.45 billion in FY1999 to $3.96 billion in
FY2000. The requested decrease was mostly due to the Administration’s proposal to
transfer over $900 million from the Harbor Maintenance Trust Fund to establish a new
Harbor Services Fund, which Congress rejected in the appropriations process. The water
resources subfunction includes funding for the Army Corps of Engineers and the
Department of the Interior’s Bureau of Reclamation.2 The Corps constructs and maintains
facilities for flood control, commercial navigation, and hydroelectric power. While the
Corps operates nationwide, the Bureau of Reclamation constructs, maintains, and operates
diversion dams, reservoirs, and related facilities that provide water for irrigation,
hydroelectric power, and municipal and industrial uses in 17 western states. The
conference report on the FY2000 budget resolution did not include any specific funding
assumptions related to water resources.3
Conservation and Land Management
The President’s budget proposed an increase of $630 million in budget authority for
conservation and land management from $5.14 billion in FY1999 to $5.77 billion in
FY2000, and projected an increase of $390 million in outlays from $5.07 billion in FY1999
2 For information on the amount of funding appropriated to these agencies, refer to CRS Report
RL30207,
Appropriations for FY2000: Energy and Water Development, coordinated by Marc
Humphries and Carl Behrens.
3 For further discussion of issues related to this subfunction, refer to CRS Report 98-985 ENR,
Water Resource Issues in the 106th Congress, by Betsy Cody and Steve Hughes.
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to $5.46 billion in FY2000. The Department of Agriculture’s Forest Service and the
Department of the Interior’s Bureau of Land Management (BLM), National Park Service,
and Fish and Wildlife Service manage the majority of federal lands.4 The Fish and Wildlife
Service works with the Department of Commerce’s National Marine Fisheries Service and
state agencies to protect wildlife and fishery populations.5 The Department of
Agriculture’s Natural Resources Conservation Service assists farmers in managing their
lands, and under the Wetlands Reserve Program, compensates farmers for removing
portions of their land from production to protect wetlands.6 The Senate’s version of the
FY2000 budget resolution expressed the sense of the Senate that $200 million should be
appropriated from OCS revenues to the Land and Water Conservation Fund for
supporting state and local conservation and recreation projects. However, the conference
committee on H.Con.Res. 68 did not adopt the Senate’s funding assumption.
Recreational Resources
The Administration requested an increase of $260 million in budget authority for
recreational resources from $3.37 billion in FY1999 to $3.63 billion in FY2000, but
projected a decrease of $440 million in outlays from $3.95 billion in FY1999 to $3.51
billion in FY2000. The Department of Agriculture’s Forest Service and the Department
of the Interior’s Bureau of Land Management, National Park Service, and Fish and
Wildlife Service manage federal lands that provide outdoor recreational opportunities.7
The Senate’s version of the FY2000 budget resolution expressed the sense of the Senate
that adequate funding for the Urban Parks and Recreation Recovery program should be
a high priority in congressional appropriations decisions. However, the conference
committee on H.Con.Res. 68 did not adopt the Senate’s funding assumption. In the
appropriations process, the conference agreement on H.R. 3194 provided approximately
$2 million for the program in FY2000, instead of $1.5 million as proposed by the Senate
and $4 million as proposed by the House.
Pollution Control and Abatement
Pollution control and abatement has traditionally accounted for the largest portion
of funding under Function 300. The Administration requested a decrease of $170 million
in budget authority for pollution control and abatement from $7.53 billion in FY1999 to
$7.36 billion in FY2000, but projected an increase of $690 million in outlays from $6.86
4 For information on the amount of funding appropriated to these agencies, refer to CRS Report
RL30206,
Appropriations for FY2000: Interior and Related Agencies, coordinated by Alfred R.
Greenwood.
5 For information on the amount of funding appropriated to this agency, refer to CRS Report
RL30209,
Appropriations for FY2000: Commerce, Justice, and State, the Judiciary, and Related
Agencies, coordinated by Edward Knight.
6 For information on the amount of funding appropriated to this agency, refer to CRS Report
RL30201,
Appropriations for FY2000: U.S. Department of Agriculture and Related Agencies,
coordinated by Ralph M. Chite.
7 For information on the amount of funding appropriated to these agencies, refer to CRS Report
RL30206,
Appropriations for FY2000: Interior and Related Agencies, coordinated by Alfred R.
Greenwood.
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billion in FY1999 to $7.55 billion in FY2000. The Environmental Protection Agency
(EPA) is the primary federal agency responsible for the control of pollution and the
cleanup of civilian environmental contamination. EPA’s main functions are to enforce
federal environmental laws, oversee national regulations, and assist state, local, and tribal
governments in controlling pollution.8 The U.S. Coast Guard also administers programs
to prevent and clean up hazardous spills.9 The most controversial budgetary issues
regarding pollution control and abatement were funding levels for the Superfund program,
wastewater infrastructure, and the Administration’s Climate Change Technology
Initiative.10 Regarding climate change activities, the conference report on the FY2000
budget resolution included the sense of the Senate that federal funding should not be used
to reduce greenhouse gas emissions if such reductions are made to meet U.S.
commitments to the Kyoto Protocol prior to Senate ratification.11
Research and Technical Support
Research and technical support has traditionally accounted for the smallest portion
of funding under Function 300. The Administration requested an increase of $350 million
in budget authority from $3.09 billion in FY1999 to $3.44 billion in FY2000, and projected
an increase of $340 million in outlays from $2.93 billion in FY1999 to $3.27 billion in
FY2000. Under the Department of the Interior, the U.S. Geological Survey conducts
research on land, water, mineral, and biological resources and on natural hazards.12 Under
the Department of Commerce, the National Oceanic and Atmospheric Administration
(NOAA) conducts research on coastal resources, air quality, climate change, and ozone
depletion.13 NOAA also administers the National Weather Service, which issues public
weather forecasts and warnings. The conference report on the FY2000 budget resolution
did not include any specific funding assumptions regarding research and technical support.
8 For information on the amount of funding appropriated to this agency, refer to CRS Report
RL30204,
Appropriations for FY2000: VA, HUD, and Independent Agencies, coordinated by
Dennis Snook.
9 For information on the amount of funding appropriated to this agency, refer to CRS Report
RL30208,
Appropriations for FY2000: Department of Transportation and Related Agencies,
coordinated by Duane Thompson and Robert Kirk.
10 For a discussion of these issues, refer to CRS Issue Brief IB10038,
Environmental Protection
Agency: FY2000 Budget Issues, by Martin Lee.
11 If ratified by the Senate, the Kyoto Protocol would commit the United States to reducing
greenhouse gas emissions by 7% below 1990 levels. For additional information on the Kyoto
Protocol and global climate change, refer to the CRS Electronic Briefing Book on Global Climate
Change. [http://www.congress.gov/brbk/html/ebgcc1.html]
12 For information on the amount of funding appropriated to this agency, refer to CRS Report
RL30206,
Appropriations for FY2000: Interior and Related Agencies, coordinated by Alfred R.
Greenwood.
13 For information on the amount of funding appropriated to this agency, refer to CRS Report
RL30209,
Appropriations for FY2000: Commerce, Justice, and State, the Judiciary, and Related
Agencies, coordinated by Edward Knight.
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Tax Revenues and Incentives
Major sources of federal revenue under Function 300 include timber sales,
recreational fees, park concessions, grazing fees, mineral royalties from leases on onshore
sites, and OCS revenues from offshore oil and gas leases. Superfund taxes are another
source. However, taxing authority expired on December 31, 1995, and whether to
reinstate the taxes has been a prominent issue in the Superfund reauthorization debate.14
The conference report on the FY2000 budget resolution assumed that revenue offsets will
be adopted to fund a net tax cut of $778 billion over the next 10 years from FY2000 to
FY2009. The Senate’s version of the budget resolution indicated that such offsets could
possibly include the reinstatement of Superfund taxes in anticipation of or in conjunction
with fundamental Superfund reform legislation, but the conference committee did not
include this language in its report on H.Con.Res. 68. The Senate’s version of the budget
resolution also expressed the sense of the Senate on allowing budgetary levels to be
adjusted for legislation that would use OCS revenues for historic preservation, recreation,
conservation, and coastal needs as long as the costs of such legislation would not increase
the federal deficit from FY2000 to FY2009. However, the conference committee on
H.Con.Res. 68 did not adopt the Senate’s funding assumption.
Function 300 also includes several tax incentives that will cost the taxpayer nearly
$1.56 billion in FY2000 under current law. Of this amount, state and local governments
would receive a tax break of $445 million to construct water, sewer, and hazardous waste
facilities with tax-exempt bonds, and the timber industry would receive tax credits of
roughly $585 million. There would be approximately $255 million in tax incentives
available for historic preservation as well. The mining industry also would receive roughly
$270 million in tax incentives under current law. As part of the Administration’s proposed
Livability Agenda, the budget request introduced a new financing initiative that would
have offered state, local, and tribal governments a total of $9.5 billion in bond authority
over 5 years for 15-year Better America Bonds to support projects that would preserve
green space, create or restore urban parks, protect water quality, and clean up brownfield
sites. The President’s budget proposed tax credits of $8 million in FY2000 and a total of
$673 million from FY2000 to FY2004 to support the bonds.15 Under the Administration’s
proposal, EPA and the Department of the Treasury would have jointly administered the
bonds. However, the conference reports on the FY2000 budget resolution, the FY2000
appropriations bill for the Department of the Treasury and Related Agencies, and the
FY2000 appropriations bill for VA-HUD-Independent Agencies did not include specific
language regarding funding for EPA’s bond proposal.
14 For further discussion, refer to CRS Issue Brief IB10011,
Superfund Reauthorization Issues in
the 106th Congress, by Mark Reisch.
15 However, the total amount of $673 million in tax credits only represents the first 5 years of the
cost of the bonds to taxpayers. The entire life of the bonds would be 15 years, which may require
several billion dollars in tax credits to support them over the long-term.