Submittal of the Senate Committee on Interior and Insular Affairs to the Senate Budget Committee pursuant to Section 301...

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Submittal of the Senate Committee on Interior and Insular Affairs to the Senate Budget Committee pursuant to Section 301(c) of the Congressional budget act
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Table of Contents
    Front Cover
        Page i
        Page ii
    Letter of transmittal
        Page iii
        Page iv
    Preface
        Page v
        Page vi
    Table of Contents
        Page vii
        Page viii
    Overview
        Page 1
        Page 2
        Page 3
        Page 4
    Proposed new legislation affecting budget authorities and outlays for fiscal year 1977
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
    Analysis of the President’s proposed budget for fiscal year 1977 for programs within the jurisdiction of the Senate Committee on Interior and Insular Affairs
        Page 17
        Page 18
        Page 19
        Page 20
    Narrative explanation of recommendations
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
        Page 44
        Page 45
        Page 46
    Back Cover
        Page 47
        Page 48
Full Text



94th Congress CXTE RN
2d Session COMTEPIN






SUBMITTAL OF THE SENATE COMMITTEE ON
INTERIOR AND INSULAR AFFAIRS TO THE SENATE BUDGET COMMITTEE PURSUANT
TO SECTION 301(c) OF THE CONGRESSIONAL BUDGET ACT





rREI'ARI) BY THE

COMMITTEE ON INTERIOR AND
INSULAR AFFAIRS
UNITED STATES SENATE


i F






MARCH 1976 '* ATS


Printed for the use of the
Committee on Interior and Insular Affairs

U.S. GOVERNMENT PRINTING OFFICE 67-897 WASHINGTON : 1976


































COMMITTEE ON INTERIOR AND INSULAR AFFAIRS

HENRY M. JACKSON, Washington, Chairman FRANK CHURCH, Idaho PAUL J. FANNIN, Arizona
LEE METCALF, Montana CLIFFORD P. HANSEN, Wyoming
J. BENNETT JOHNSTON, Louisiana MARK 0. HATFIELD, Oregon
JAMES ABOUREZK, South Dakota JAMES A. McCLURE, Idaho
FLOYD K. HASKELL, Colorado DEWEY F. BARTLETT, Oklahoma
JOHN GLENN, Ohio
RICHARD STONE, Florida DALE BUMPERS, Arkansas GRENVILLE GARSIDE, Special Counsel and Staff Director DANIEL A. DREYFUS, Deputy Staff Director for Legislation WILLIAM J. VAN NESS, Chief Counsel D. MICHAEL HARVEY, Deputy Chief Counsel OWEN J. MALONE, Senior Counsel W. 0. (FRED) CRAFT, Jr., Minority Counsel

(II)

















LETTER OF TRANSMITTAL

U.S. SENATE,
COIFUITTEE ON INTERIOR AND INSULARAFFAIRS,
Washington, D.C., March 11, 1976.
Hon. EDMUND MUSKIE, Chairman, Senate Budget Committee, Washington, D.C.
DEAR MR. CHAIRMAN: Enclosed is the report of the Senate Committee on Interior and Insular Affairs to the Senate Budget Committee as required by section 301(c) of the Congressional Budget Act.
The report follows the format and instructions suggested in your letter of January 30, 1976. Where special considerations of this committee's programs require deviations from the format, explanations are provided
As in the past, we look forward to continued coordination between our committee and the Budget Committee as the session progresses. We will keep you advised of legislative developments which have budgetary significance.
The staff of the Interior Committee will be glad to assist your staff by providing any supplemental information necessary for your work.
Sincerely,
HENRY M. JACKSON, Chairman. PAUL J. FANNIN,
Ranking Minority Member.



















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PREFACE


Section 301 (c) of the Congressional Budget Act (Public Law 93344), requires all standing committees in each House of the Congress to submit an annual report to the Budget Committee of their respective House. This annual report is due on or before March 15 of each year. The report of each committee is to contain(1) Comments on the general economic setting for the coming
fiscal year with respect to the committee's major areas of
jurisdiction;
(2) A description of the programs and activities within the
committee's oversight jurisdiction and an analysis of the budget and revenue aspects of these programs and activities for the
coming fiscal year;
(3) A description of the new programs and major program
changes initiated in areas of jurisdictional responsibility of the
committee;
(4) Estimates of the new budgetary authority and budget
outlays required by these programs for the current and coming
fiscal year;
(5) Estimate of the budgetary impact of the legislative proposals of the President. which fall into the area of jurisdictional
responsibility for the committee; and
(6) Comments on the budget estimates of the President for
those programs already authorized for all or part of the coming fiscal year or for which authorization can be reasonably expected
to continue without major changes.
This committee print contains the report of the Committee on Interior and Insular Aff airs of the U.S. Senate, submitted to the Senate Budget Committee on March 11, 1976. The committee hopes that this document will prove a useful source of information for persons seeking to understand the operation and budgetary impact of the Federal programs and new activities which come under the jurisdiction of the Committee on Interior and Insular Affairs. Sections 301 (a) and 301 (c) of the Congressional Budget Act are reprinted below.
SECTIONS 301 (a) AND 301 (c) OF THE CONGRESSIONAL BUDGET ACT
SEC. 301 (a). ACTION To BE COMPLETED BY MAY 15.-On or before May 15 of each year, the Congress shall complete action on the first concurrent resolution on the budget for the fiscal year beginning on October 1 of such year. The concurrent resolution shall set forth(1) the appropriate level of total budget outlays and of total
new budget authority;
(2) an estimate of budget outlays and an appropriate level
of new budget authority for each major functional category, for contingencies, and for undistributed intragovernmep a] transM






VI

actions, based on allocations of the appropriate level of total
budget outlays and of total new budget authority;
(3) the amount, if any, of the surplus or the deficit in the
budget which is appropriate in light of economic conditions and
all other relevant factors;
(4) the recommended level of Federal revenues and the amount,
if any, b3l which the aggregate level of Federal revenues should be increased or decreased by bills and resolutions to be reported
by the appropriate committees;'
(5) the appropriate level of the public debt, and the amount,
if any, by which the statutory limit on the public debt should be increased or decreased by bills and resolutions to be reported
by the appropriate Committees; and
(6) such other matters relating to the budget as may''be appropriate to carry out the purposes of this act.

SEC. 301 (c).VIEWS A-N-DESTIMATES OF OTHER COMMITTEES.-On or before March 15 of each year each standing committee of the House of Representatives shall submit to the Committee on the Budget of the House, each standing committee of the Senate shall submit to the Committee on the Budget of the Senate, and the Joint Economic, Committee and Joint Committee on Internal Revenue Taxation shall submit to the Committees on the Budget of both Houses(1) Its views and estimates with respect to all matters set forth
in subsection (a) which relate to matters within the respective jurisdiction or functions of such committee or joint committee;
and
(2) Except in the case of such joint committees, the estimate of
the total amounts of new budget authority, and budget outlays resulting therefrom, to be provided or authorized in all bills and resolutions within the iurisdiction of such committee which such committee intends to be effective during the fiscal year beginning
on October 1 of such year.
The Joint Economic Committee shall also submit to the Committees on the Budget of both Houses, its recommendations as to the fiscal policy appropriate to the goals of the Employment Act of 1946. Any other committee of the House or Senate may submit to the Committee on the Budget of its House, and any other joint committee of the Congress may submit to the Committees on the Budget of both Houses, its views and estimates with respect to all matters set forth in subsection (a) which relate to matters within its jurisdiction or functions.















CONTENTS

Page
Letter of transmittal----------------------------------------------- III
Pref ace----------------------------------------------------------- v
Sections 301 (a) and (c) of the Congressional Budget Act --------------v
Overview--------------------------------------------------------- 1
New legislation------------------------------------------------ I
The President's proposed budget ----------------------------------2
Revenue aspects of the programs--------------------------------- 2
Proposed new legislation affecting budget authorities and outlays for
fiscal year 1977 ------------------------------------------------ 5
S. 1 777-Coal Conversion Act------------------------------------ 9
S. 2869-Synthetic fuels loan program----------------------------- 9
S. 1864-Energy Information Act-------------------------------- 10
H.R. 549-Northern M\arianas Covenant-------------------------- 10
H.R. 7688-Trust territory civil government ------------------------10
Guam rehabilitation-------------------------------------------- 10
S. 2998-Puerto Rico Federal Relations Act ------------------------11
Fiseal year 1977 authorization for ERDA-------------------------- 11
S. 1301-Water resources research-------------------------------- 11
S. 507-National Resource Lands Management Act ------------------12
S. 2555-The National Rangelands Policy Act ----------------------12
H.R. 9719--In-lieu-tax payments ----------------------------------12
S. 522-The Indian Health Care Improvement Act ------------------13
S. 2981-A bill to' authorize appropriations for the Indian Claims
Commission for fiscal year 1977 ---------------------------------15
S. 1689-Pennsy3lvania Avenue Development Corporation Act
Amendment -------------------------------------------------1
S. 327-Land and Water Conservation Fund Amendments ------------15
Miscellaneous parks-------------------------------------------- 15
S. 521-Outer Continental Shelf Management Act -------------------15
Analysis of the President's proposed budget for fiscal year 1977 for programs within the jurisdiction of the Senate Committee on Interior and Insular Aff airs --------------------------------------------------- 17
Narrative explanation of recommendations---------------------------- 21
Full committee------------------------------------------------ 21
Energy Research and Water Resources Subcommittee ---------------22
Saline water conversion program----------------------------- 22
Water resources planning----------------------------------- 22
Energy research and development -----------------------------23
Bureau of Reclamation program ------------------------------235
Environment and Land Resources Subcommittee --------------------27
Indian Aff airs Subcommittee------------------------------------ 33
Road construction----------------------------------------- 33
Indian rights protection------------------------------------- 34
School construction---------------------------------------- 34
Operation of Indian programs-------------------------------- 34
Indian health service---------------------------------------3P 5
Minerals, Materials and Fuels Subcommittee ------------------------3 r)
U.S. Geological Survey------------------------------------- 36
Bureau of Mines------------------------------------------ 38
MIineral evaluation of Alaska lands ----------------------------41
Bureau of Land Management-Energy and minerals management --------------------------------------------------- 42
BLM-OCS baseline studies program ---------------------------42
Phase II of deep ocean mining environmental study (DOMES) project------------------------------------------------------ 44
Parks and Recreation Subcommittee------------------------------ 45
National Park Service--------------------------------------435
(VII)















OVERVIEW
The Senate Committee on Interior and Insular Affairs, in its analysis of budgetary considerations for fiscal year 1977, has continued to observe the assumptions which were set forth in its report of March 1975. The principal factors considered in the analysis were: (1) the requirement for strict fiscal responsibility; (2) needs for adequate responses to emerging national needs and priorities; and (3) effective maintenance of ongoing programs of proven significance.
Conservative estimates have been made of the potential new legislative authorizations which would have budgetary impacts within the terms covered by the report. The President's proposed budget has been reviewed with the greatest possible concern for economy and fiscal restraint.
NEw LFGiSLATION
A great deal of significant new legislative initiatives were taken in the first session of the 94th Congress, particularly in the energy area. The Congress reemphasized its determination to support an aggressive research and development program in alternative energy sources in enacting the fiscal year 1976 authorization for the Energy Research and Development Administration (ERDA). The enactment of the Energy Policy and Conservation Act initiated action in several new energy areas, notably the creation of a strategic petroleum reserve to protect national interests against sudden disruptions in imported oil supplies. Both of these policy initiatives will require continued budgetary support in fiscal year 1977.
New legislation of major budgetary significance which is anticipated to be enacted in fiscal year 1977 includes the ERDA annual authorization which again must convey the congressional intention to sustain an expanding and effective program. It is anticipated that a renewed effort will be made to provide ERDA with authority to support major demonstrations of first-of-a-kind synthetic fuels production facilities and other unconventional energy sources utilizing Federal guarantees of private loans. Although a loan guarantee program would have minimal budgetary impact in fiscal year 1977, it could represent a significant commitment for future budget cycles.
Other major potential new energy policy measures, the Coal Conversion Act, and the Energy Information Act, would have less significant fiscal implications.
Other pending authorizing legislation deals with continuing Federal responsibilities to its territorial possessions and trusteeships, and the management of the public lands. A very significant initiative in Indian affairs policy is anticipated with the probable enactment of the Indian Health Care Improvement Act.




67-897-76-2







2

THE PRESIDENT'S PROPOSED BUDGET
Two significant general observations are offered for the consideration of the Budgzet Committee and the Senate:
1. There are a number of direct Federal operating programs under the jurisdiction of the Interior Committee which have been established for many years. It is typical of such programs-for example, the operation of the National Park System-that a measure of the annual operating costs are associated with unusual maintenance, rehabilitation, and betterment measures which can of ten be deferred for accomplishment in future years. We have experienced several consecutive budgetary cycles under severe fiscal constraints imposed by the administration through detailed review of programs by the Offce of Managment and Budget. Successive decisions to defer necessary work results in diminution of services to the public, degradation of public assets and ultimately excessive costs to remedy the consequences of extended neglect.
An argument of high priority or critical need is difficult to make for the mundane operations of established programs, because a need which is being served does not produce public attention or crisis conditions. Nevertheless, there is a minimal level of support which is essential on a continuing basis if the public needs and crises we have dealt with in the past are not to return.
2. During the committee's review of the President's proposed budgnet, a chronic shortage of personnel adequate to carry out the congressional objectives appears in numerous, if not all, programs. There is, of course, a general effort underway to reduce Federal manpower. It appears to be time, however, for the Congress to give attention to the impact of staffing quotas imposed upon Federal agencies as a budgetary device.
Recent budget reforms were initiated to prevent the arbitrary refusal by the administration to carry out the levels of program accomplishments set forth by appropriations in excess of the Pres.!,ident's budget requests. Elaborate procedures are now established for congressional control over rescisions or impoundments of appropriated funds. If the Congress is to have any effective control over program levels, however, the agencies must also have the capability to utilize appropriations. The principal factor controlling capability is personnel.
Personnel ceilings can be used to frustrate any- congressional eff ort to establish higher priorities for programs other than those recoimended by the President and there are indications that thiey are infact being used in that way. Unless Congress is sensitive to, and. prevents arbitrary staffing constraints, the elaborate fund impoundnent rules- will become largely ineffective.

REVENUE ASPECTS OF THE PROGRAMS
The estimated fiscal year 1977 receipts of the Bureau of Land
-AIa nao'ement total $6.5 billion. This is more than the untiie budg-et for, the Department of the Interior.
Six billion dollars of this total is, Outer Continental Shelf mineral leasing receipts. Thus, even if OCS receipts are not included, the estimated receipts from public land programs exceed BLXI's total budget by well over $400 million.






3

Since expenditures for Federal resource programs in many instances result in increased revenues from the use of public resources, the Congress should consider these expenditures as a capital investment rather than a simple outlay of funds. Failure to make these investments at a level which at least maintains the value of the resource means that we will allow a large percentage of our natural resource base to deteriorate. This is clearly not in the long-term national interest since the strength of our Nation is based heavily on our wealth of natural resources.






















PROPOSED NEW LEGISLATION AFFECTING BUDGET AUTHORITIES
AND OUTLAYS FOR FISCAL YEAR 1977
The following tabulation includes those measures within the jurisdiction of the Senate Committee on Interior and Insular Aff airs which axe expected to be enacted during the second session of the 94th Congress and which would have major significance for the analysis of t-I'Lle fiscal year 1977 budget.
The committee will also be considering a number of measures which have less significant budgetary impacts. While the committee does not believe that those measures would be of consequence to the Budget Committee in its consideration of the congressional budget their exclusion from the report does not imply any attitude that funding would be postponed beyond fiscal year 1977 for successful measures. The budget resolution, in addition to the measures shown below, should make appropriate provision for minor new legislative initiatives in the functional areas of natural resources, environment, and energy; education, training, employment, and social services (Indian affairs); and general government.
















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S. 1777-COAL CONVERSION ACT
The. objectives of this legislation are:
To require that after January 1, 1979, new electric powerplants and major industrial installations which utilize fossil energy resources as boiler fuel must be capable of utilizing coal as their primary energy source, in a manner consistent with applicable environmental requirements.
To require that as promptly as possible, but in no event later than January 1, 1980, existing fossil-fuel electric powerplants and major industrial installations which utilize fossil energy resources as boiler fuel, and not scheduled for retirement prior to January 1, 1985, must acquire the capability to utilize coal as their primary energy source in a manner consistent with environmental requirements.
To require that by January 1, 1985, to the maximum extent practicable, fossil-fuel electric powerplants and major industrial installations must utilize coal as their primary energy source in a manner consistent with applicable environmental requirements.
Although budgetary outlays for S. 1777 are minimal in comparison with the overall Federal expenditures programed for fiscal year 1977, the program will have a significant impact upon the structure of fossil fuels use in the United States.
Coal substitution for oil and natural gas as our Nation's principal boiler fuel in electric utility and industrial applications presents a major potential for the achievement of energy self-suficiency. Such a national program was endorsed by the President in his 1975 state of the Union message as well as the congressional program. of economic recovery and energy sufficiency.

S. 2869-SYNTnETIc FUELS LOAN PROGRAM
In the 1st session of the 94th Congress, language was included in the Senate version of the measure -authorizing E RDA's fiscal year 1976 program to authorize the Administrator to guarantee loans for the financing of first-of-a-kind demonstrations of synthetic fuels facilities and other unconventional energy sources. The Senate amendment in somewhat modified form was adopted by the Senate-House conferees and the conference report was ado-pted'by the Senate. 'The House, however, deleted the loan guarantee provision in approving .the conference report.
New legislation has been introduced in both Houses which would authorize a loan guarantee program administered by ERDA to carry out demonstrations of new energy technologies.
Pending proposals diff er in technical scope and levels of commitment contemplated. In general, a program encompassing coal-based synthetic fuels facilities, solar energy, solid waste conversion, other unconventional energy sources and possibly shale oil production would be covered by the measure. The initial level of authority would be between $2 and $6 billion of guarantees including support for State and local governments to compensate for economic and social consequences of energy development encouraged by loan guarantees.
The budgetary impacts of enactment of such a measure are difficult to predict because the program achievement depends upon agreements with independent proprietors of potential demonstrations and
67-897-7 6-3






10

upon the independent decisions of non-Federal financial institutions as well. Authority to make commitments would be granted to ERDA and the loan guarantee commtments would be made over several years as negotiations on specific proposals were completed. Actual expenditures would occur only in the event of default on the part of a non-Federal participant. Some percentage (perhaps 10 to 20 percent) of the guarantee commitment might result in Federal expenditures in future years.

S. 1864-ENERGY INFORMATION AcT
This legislation is intended to establish an independent agency in the Federal Government, the National Energy Information Administration, whose purpose is the systematic collection, analysis, and dissemination of the energy information and data required for the formulation and evaluation of energy policy options. This agency wil be directed to create and maintain a national energy information system. The system will contain an up-to-date, reliable and credible energy data base covering all phases of energy supply, distribution, and consumption, including independent estimates of energy reserves and financial and economic information describing the operations of major energy companies.
The figures contained in the budget table represent the committee's estimate of the cost of accomplishing the mission which would be assigned to a National Energy Information Administration. The legislation contemplates the creation of this new agency through the transfer of existing functions, utilizing e:isting personnel and resources. An amendment proposed on February 26, 1976, by Senator Haskell explicitly spells out the procedures for this transfer. Under this legislation, the Federal energy information effort could be consolidated and streamlined and duplicative functions eliminated. Thus, the overall budget impact of S. 1864 as amended by Senator Haskell's provision would be sustantially less than the estimates contained in this report.

H.R. 549-NORTHERN MARIANAS COVENANT
ll.R. 549, which has passed both Houses of the Congress, would establish a Commonwealth of the Northern Marianas Islands which are presently administered by the United States as a part of the Trust Territory of the Pacific Islands. The amounts shown are required to carry out the provisions of section 702 of the covenant and would be partly offset by reductions in funds required for the ongoing administration of the trust territory.
H.R. 7688-TRUsT TERRrrORY CIvIL GOVERNMENT
These sums are necessary y for the operation of the Government of the Trust Territory of the Pacific Islands to continue the capital improvement program, and provide necessary services such as health care.
GUAM REHABILITATION
This measure, which has not yet been introduced in the Senate, would provide an expanded program of loans and grants for water, sewerage, and educational facilities in the territory of Guam.








S. 2998-PUERTO Rico FEDERAL RELATIONS ACT
This measure would provide for rebating to Puerto Rico and perhaps the Virgin Islands certain taxes collected by the Federal Government in past years.
FISCAL YEAR 1977 AUTHORIZATION FOR ERDA
The nonnuclear research and development program of the Energy Research and Development Administration is authorized by the Energy Reorganization Act of 1974-Public Law 93-438-the Federal Non-Nuclear Energy Research and Development Act of 1974Public Law 93-577-the Geothermal Energy Research Development and Demonstration Act of 1974-Public Law 93-410-the Solar Energy Research, Development and Demonstration Act of 1974Public Law 93-473-and the Solar Heating and Cooling Demonstration Act of 1974-Public Law 93-409. The programs of the ERDA require annual authorizations of. appropriations pursuant to Public Law 93-577 and the Atomic Energy Act of 1946, as amended.
Legislative jurisdiction over the ERDA authorizations is shared by the Senate Interior and Insular Affairs Committee and the Joint Committee on Atomic Energy. The Interior Committee considers the nonnuclear programs of the ERDA and the Joint Committee considers the nuclear programs.
A detailed discussion of the committee's analysis of the nonnuclear energy research and development budget is included in the portion of this report relating to the President's budgetary proposals.
So 1301-WATER RESOURCES RESEARCH
9' Section 10 of Public Law 92-60 requires that authorizations for the
saline water conversion program be specified in annual appropriation authorization acts. To date, an authorization bill has not been introduced in the Senate nor has the administration requested a specific authorization under authority of Public Law 92-60. In July 1974 the Office of Water Research and Technology was established to merge the programs authorized under the Water Resources Research ActPublic Law 88-379-and the Saline Water Conversion Act of 1971Public Law 92-60. Merger of those two programs resulted in the need for new legislation and the administration submitted legislation as S. 1301. In expectation of passage of this bill-S. 1301-the administration request of $22.2 million (BA) for fiscal year 1977 and $18.2 million (BO) represents a combined budget of the above two programs. It is the expectation of the Senate Interior Committee that no action will be taken upon S. 1301.
Legislation has been introduced-H. R. 11559-to provide authorizations pursuant to the Saline Water Conversion Act of 1971 for fiscal year 1977 in the amount of $6,470,000. It is anticipated that this authorization level will be accepted by the Senate and the committee recommends that the $6,470,000 in authorizations be available for BA in addition to $15,803,000 under existing authority of Public Law 88-379, as amended, to equal the total requested by the administration.







12

S. 507-NATIONAL RESOURCE, LANDS MANAGEMENT ACT
This measure would provide the first comprehensive, statutory statement of purposes, goals and authorizations for the use and management of about 448 ilon acres of land administered through the Bureau of Land Management. The bill, commonly called the BLM\ Organic Act, is similar in purpose and effect to the 1897 Organic Act for the Forest Service and the 1916 Park Service Organic,'Act. While the other two major land management agencies, the Park Service and the Forest Service have had these comprehensive, statutory mandates for more than half a century, the BLM has had to depend on some 3,000 public land laws which have accumulated over the past 170 years. These laws are often conflicting and to a serious extent, incomplete and inadequate. S. 507 would correct these laws, remove conflict, and provide missing authority.
The bill authorizes the appropriation of moneys needed to implement it. However, many of the provisions of S. 507 simply restate
existing authority. Where new authority is provided, the result of such authority will often be more efficient, not necessarily more costly, management of BLM lands. In view of the increasing demands for use of these lands, management will, of necessity, become more intensive and, thus, more costly. These additional costs will occur whether or not S. 507 is enacted. The legislative charts submitted for the use of the Budget Committee set forth the additional expenditures required by the limited number of more intensive or new program authorizations contained in S. 507.

S. 2555-THE, NATIONAL RANGELANDS POLICY ACT
This measure would authorize a $900 million, 20-year range rehabilitation program as outlined in the January 1975 BLMN "Range CJondition Report" submitted to the Senate Appropriations Committee. This report, requested by the Appropriations Committee in its report on the fiscal year 1975 Interior and Related Agencies Appropriations bill, sets forth alarming figures as to the condition of the BLM rangelands. According to the report only 2 percent of BLM rangelands is in excellent condition; another 28 percent is in poor condition; and 5 percent is in bad condition. Furthermore, the report discloses that 16 percent of the range continues to decline. The 20-year range rehabilitation program which S. 2555 would authorize would, according to BLM estimates, provide total benefits of an estimated $125 million annually in increased forage resources for domestic livestock, watershed protection, reduced salinity in the Colorado River, and enhanced wildlife habitats.

H.R. 9719-N-LEuz-TAX PAYTE-NTS
This measure would provide two alternative methods for paying Federal moneys to State and local governments, which have Federal lands within their boundaries. Under the first method, the States and counties would continue to receive their percentage of revenues generated from mineral leasing, timber cutting and other activities on Federal lands. These local governments would al so receive an. additional 10 cents per acre not to exceed a limitation based on pop-






13

elation. Under the second alternative these governments would receive 75 cents an acre not to exceed a limitation based on population and diminished by their entitlement to revenue from development activities on public lands. In-lieu-tax payments legislation has been pending before each Congress since submission of the Public Land Law Review Commission report. Former legislation,-, however, based the alternative method of receiving payments on the appraised fair market value of Federal lands. As such lands have not been appraised the total bill could not be determined. This is the first Congress in which the inlieu-tax payment legislation bases the alternative payments on a maximum per acre figure. This greatly enhances the chances of final passage for the legislation.
S. 522-THE INDIAx HEALTH CARE IMPROVEMENTACT
The 1977 fiscal year authorization contained in the Senate-passed version is $232,224,000. In the following table is a detailed breakout of the manner in which the funds would be expended for the 7 fiscal years authorized by the Senate-passed version of this legislation. In addition, the committee recommends a review of the Committee Report No. 94-133 on S. 522 for detailed justification of the various authorization levels.














14




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15

-S. 2981-A BILL To AUTHORIZE APPROPRIATIONS FOR THE INDIAN
CLAIMS COMMISSION FOR FISCAL YEAR, 1977
This legislation is currently pending before the committee but based on previous experience the committee anticipates that the Commission will require $120,000 beyond the President's request of $1,530,000. The additional funds would be. used to cover mandatory cost of living increases for that agency.

S. 1689-PENNSYLVANIA AVENUE DEVELOPMENT C-ORPORATION ACT AMENDMENT
These funds are required to implement the Pennsylvania Avenue Plan which was developed pursuant to 86 Stat.. 1266 and which has been approved by the Congress.

S. 327-LAND.AND WATER CONSERVATION FUND AMENDMENTS
Senate passage of S. 327, title I of which raises the base level of the land and water fund from the present $300 million annually to $1 billion annually, was based on the fact that the Federal recreation land acquisition backlog presently exceeds $3 billion and State recreation needs to 1989, when the fund expires, exceed $45 billion. At p resent levels, the fund is incapable of covering inflation, much less land p rice escalation. The Senate has twice passed this increase.
Title 11 of S. 327 would authorize a grant program for the preservation of historic properties. The measure would authorize $150 million a year for 5 years. The committee believes that this level is necessary; in reality, the Congress should be committing well in excess of $300 million a year to try to save some of our historic properties. State warrants for the relatively insignificant amounts provided in prior years (and reflected in the administration's budget) indicate that the entire $150 million will be easily matched by States and localities.

MISCELLANEOUS PARKS
The committee has been and will be considering various measures which will either adjust authorizations and/or boundaries of units of the national park system or adding new units. The Santa Monica and Nantucket measures are two of the larger measures nearing final action.

S. 521-OUTER CONTINENTAL SHELF MANAGEMENT ACT
The Outer Continental Shelf Management Act passed the Senate on July 30, 1975. The act would provide modern policy guidelines to facilitate rapid and responsible development of the oil and gas resources of the Outer Continental Shelf. The major provisions would
(1) establish policy guidelines, (2) require a 5-year leasing program,
(3) give te coastal States an increased role in Federal OCS decisions,
(4) provide Federal compensation to coastal States adversely affected by OCS development, (5) improve safety requirements, (6) establish unlimited absolute liability for oil spill damage with payments from a liability fund, (7) provide for a two-step decision process to separate exploration from development and production, and (8)








authorize new leasing systems and require their use on an experimental basis.
Section 308 of the bill, as passed, established an energy fund iden. tical to that provided in S. 586, passed by the Senate on July 16, 1975. It is intended that only one such fund be established.' Thus, if S. 586 becomes law before S. 521, the fund provided -in S. 52:1 win be deleted. If the fund remains in S. 521 a -funding level of $300 million would be sufficient for fiscal year 1977 and future years.
The effect on revenues of enactment of S. 521 cannot be precisely stated. However, the committee anticipates, with the availability of more information and data and use of new leasing systems that revenues to the Government would increase in the long run.
S. 521 also would authorize and direct the Secretary of the Interior to contract for certain exploratory drilling on the Outer Continental Shelf. No funding would be required in fiscal year 1977 although it could be in future years. The precise -magnitude would depenA on recommendations from the Secretary of the Interior.















ANALYSIS OF THE PRESIDENTS PROPOSED BUDGET FOR FISCAL YEAR 1977 FOR PROGRAMS WITHIN THE JURISDICTION OF THE SENATE COMMITTEE ON INTERIOR AND INSULAR AFFAIRS
The committee's review encompassed all of the accounts which were included in the report prepared for the Interior Committee by the Congressional Budget Office. The following tables and narrative discussions includes only those programs or accounts for which the committee has recommendations. Where no comments are provided, the committee supports the amounts recommended in the President's proposed budget.
The following tables and narrative discussions are presented by subcommittee areas of jurisdiction reflecting the fact that legislative oversight of ongoing programs is largely carried out by subcommittees and by subcommittee professional staff.
The committee has jurisdiction over programs with an estimated budget outlay of $9.8 billion as proposed in the President's budget request for fiscal year 1977. A thorough analysis of ongoing programs results in a committee recommendation that this amount be increased by 19 percent or about $1.8 billion. Major portions of this increase are devoted to development of the Nation's nonnuclear energy options, care of the public's natural resources and Indian health care. In addition, substantial recommended increases for the FEA anticipate budget amendments and would not, in a strict sense be additions to the President's budget.
In general, the committee's recommendations are minimal amounts necessary to carry out congressional mandates for the programs within the committee's jurisdiction.
(17)













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NARRATIVE EXPLANATION OF RECOMMENDATIONS
FULL CO-AITNUTTEE
The Federal Energy Administration (FEA) was established as a temporary agency to expire June 30, 1976, to carry out fuel allocation and pricing regulatory programs required by the Emergency Petroleum Allocation Act, and other functions imposed by the Federal Energy Administration Act. Legislation is now pending before the Congress proposing that the agency be extended to September 30, 1979. In addition, the recently approved Energy Policy and Conservation Act (Public Law 94-163) provides for continuing petroleum allocation and price regulation for a period of 40 months after enactment of the legislation. Public Law 94-163 also includes a major provision requiring FEA to move ahead immediately to establish a strategic petroleum reserve for the storacre of up to 1 billion barrels of petroleum products. The act also authorizes major programs for improving energy efficiency and conservation, with FEA bearing major responsibilities.
The President's request for $101,397,000 in budget authority in fiscal vear 1977 for FEA programs does not include attention to the requirements of the new legislation, which will be forthcoming as part of supplemental budget requests now being prepared.
A major decision must be made by the Congress respecting FEA's future. However, the Energy Policy and Conservation Act makes it clear that the important programs mentioned above will go forward either under FEA auspices, or otherwise. Depending on the course taken the budgets required will have to be made available to either FEA or some successor agency or agencies.
The EPCA anticipates that the strategic petroleum program win be advanced materially in fiscal years 1976 and 1977; $52,200,000 is authorized for conservation programs over the same period. There is no question that very substantial budget requests for these and other costs related to the EPCA will be forthcoming and will be necessary.
An open authorization of appropriation has been provided for the early storage reserve portion of the program; $4.1 billion is authorized for a strategic petroleum program plan, and developing for implementation of the plan after it has been submitted to and reviewed by the Congress. Under EPCA, the strategic petroleum program must be submitted to the Congress not later than December 15, 1976. The plan will become effective unless disapproved. by either House in 60 days. It seems unlikely, therefore, that major commitments of funds will be made under this authority during fiscal year 1977.
The Energy Policy and Conservation Act imposes an array of new functions on the FEA. Included are major new authorities for loan guarantees to develop underground coal mines, for the creation of a strategic petroleum reserve, calling for the de I -,,Telopment of energy
(21)






22

conservation contingency plans, State and industrial conservation plans, and important new programs to improve energy efficiency. The imposition of these major additional responsibilities on FEA makes it clear that substantial additional program support, including personnel, funding will be required in fiscal year 1977. In addition, based
U on the committee's oversight activity in relation to the petroleum aWocation and pricing regulatory activities performed by the agency under the Emergency Petroleum Allocation Act there is a need to improve effectiveness of the agency's enforcement and compliance efforts under the program, which need-together with the recently enacted petroleum pricing olicy provisions of the Energy Policy and Conservation Act-will a so increase FEA manpower and other program support requirements in fiscal year 1977."
The committee believes that additional funds will be necessary for adequate staffing of FEA's operational and regulatory responsibilities.


ENERGY RESEARCH AND WATERRESOURCES SUBCOMMITTEE
SALINE WATER CONVERSION PROGRAM
Section 10 of Public Law 92-60 requires that authorizations for the saline water conversion program be specified in annual appropriation authorization acts. To (fate-, an authorization bill has not been introduced in the Senate nor has the administration requested a specific authorization under authority of Public Law 92-60. In July 1974, the Office of Water Research and Technology was established to merge the programs authorized under the Water Resources Research Act (Public Law 88-379) and the Saline Water Conversion Act of 1971 (Public Law 92-60). Merger of those two programs resulted in the need for new legislation and the administration submitted legislation as S. 1301. In expectation of passage of this bill (S. 1301) the administration request of $22.2 million (BA) for fiscal year 1977 and $18.2 million (BO) represents a combined budget of the above two programs. It is the expectation of the Senate Interior Committee that no action will be taken upon S. 1301.
Section 200 (a) of Public Law 88-379, the Water Resources Research Act, as amended, expires at the end of fiscal year 1976 and additional authority for author nations has not been enacted. Therefore, the $18.5 million in the table represents a decrease of $10 million for the section 200(a) program which will lapse without furtlier action by Congress. The Office of Water Research and Teclinology presently does not have authority to request $22,273,000 in BA unless action is taken on S. 1301 or some other legislation.
Legislation has been introduced (H.R. 11559) to provide authorizations pursuant to the Saline Water Conversion Act of 1971 for fiscal year 1977 in the amount of $6,470,000. It is anticipated that this authorization level will be accepted by the Senate and the committee recommends that the $6,470,000 in authorizations be available for BA in addition to $15,803,000 under existing authority of Public Law 88-379, as amended, to equal the total reqne,, -ted by the'administration.
WATER RESOURCES PLANNING
Title III of the Water Resources Planning Act (Public Law 89-80) authorizes financial assistance to the States to assist them in develop-






23

ing and participating in the development of comprehensive water and related land resources plans. The authorized level of funding is8 $5 million. The administration requests no funds for the title III program. The committee recommends a BA and BO increase of $5 million to the administration request to reflect continued funding for the title III program.
ENERGY RESEARCH AND DEVELOPMENT
Nonnuclear energy research and development (ERDA) overview.-The
nonnuclear research and development program of the Energy Research and Development Administrtion is authorized by the Energy Reorganization Act of 1974 (Public Law 93-438), the Fedei-alNon-Nuclear Energy Research and Development Act of 1974 (Public Law 93-577), the Geothermal Energy Research Development and Demonstration Act of 1974 (Public Law 93-410), the Solar Energy Research, Development and Demonstration Act of 1974 (Public Law 93-473) and the Solar Heating and Cooling Demonstration Act of 1974 (Public Law 93-409). The programs of ERDA require annual authorizations of appropriations pursuant to Public Law 93-577 and the Atomic Energy Act of 1946, its amended.
Legislative jurisdiction over the ERDA authorizations is shared by the Senate Interior and Insular Affairs Committee and the Joint Commitee on Atomic Energy. The Interior Committee considers the nonnuclear programs of the ERDA and the Joint Committee considers the nuclear programs.
The ERDA budget as submitted by the President lacks a strong commitment to the establishment of programs and pursuit of nonnuclear energy alternatives. A review of the so-called Holifleld tables submitted with the budget'request provides a benchmark by which the Congress might evaluate the request for funds made by divisions within ERDA, the final recommendations made by ERDA management to the Office of Management and Budget, and the final budgets approved by the 0MNB and submitted by the President to the Congress. The various ERDA divisions requested approximately $170 million more than finally approved by the 0MB and the ERDA management requested approximately $528 million more than finally approved by 0MB. Presumably the ERDA requests to 0MB were made on the basis of the goals stated in the ERDA long-range plan entitled: "Creating Energy Choices for the Future" (ERDYA-48). In addition, it appears that 0MB may have constrained ERDA programs from embarking upon costly demonstration scale projects in the hopes that the private sector, though capital constrained, might initiate such projects privately or alternatively, because demonstration projects are capital intensive, the 0MB approach, as reported last year, still seems to be to initiate demonstration projects over- a period of several years thereby reducing budget requests in, any one year. By this approach, however, it would appear that demonstration. of technologies are based not upon the readiness of technology but rather the period when 0MB is ready to commit such moneys.
Committee recommendations are as follows:
Capital expenses.-A serious deficiency in the President's budget is the continuing commitment that must be made in capital expenses to large-scale demonstration plants in a number of technologies.






24

The budget request submitted last year (fiscal year 1976) included only one demonstration scale project for the construction of a clean boiler fuel plant. The Congress authorized the construction of seven additional projects. The fiscal year 1977 request includes an appropriation request for the 5 mW thermal test facility, the 10 miW solar electric facility, a high Btu synthetic pipeline gas plant and a low Btu fuel gas plant.
In addition to those demonstration scale projects authorized during the last fiscal year (1976) but not yet appropriated, there are several other technologies which warrant the initiation of pilot or large scale demonstration plants or project,;. Such demonstrations might include a combined-cycle demonstration plant, additional large field demonstrations in enhanced recovery of oil andinatural gas,, additional pilot plants to demonstrate technologies in various geothermal resources. Lack of early authorization will lead to needless and costly delay due to heavy backlogs of orders on items such as pressure vessels, pumps, and compressors.
Operating e xpenses.-N early all of the nonnuclear programs require additional support to accelerate research, development, and demonstration on various energy supply and conservation technologies.
In the national plan for energy research, development and demonstration (ERDA-48), ERDA stated that enhanced recovery of oil and natural gas, which requires-- technological development, would buy roughly 10 years of time during which the country could develop new energy sources. Yet the administration request for this program is $8 million less than that received last fis cal vear (1976).
The budget submit ted to the Congress, for E nvironment and Safety still reflects the nuclear origins of the program. For example, the overall fiscal year 1977 budget request of $4.3 million for the environmental control program provides an increase of only $2.3 million applied to the assessment of environmental controls in nonnuclear technology developmental activities of ERDA. This program is vitally important to insure that environmental controls are being developed in parallel with energy systems development. Moneys for environmental studies of such topics as the effects of oil shale, in situ coal gasification, and geothermal utilization are needed early in the research and development programs to exercise the proper choice of alter-native techniques for extracting these energy resources cons-is tent with minimizing environmental effects. As programs move toward full scale demonstration outside supervision from agencies such as the Environmental Protection Agency will be initiated.
In the area of solar thermal applications, the original division of solar budget included a second cycle of 500 commercial and residential heating and cooling demonstration awards. The ERDA request to OMB provided for approximately 410 (62 awards for commercial demonstrations and 3.50 awards for residential demonstrationss. The President's budget provides for 25-30 awards in commercial demonstration and 200 awards in residential demonstrations. The ERDA request of 410 awards was considered the minimum necessary to maintain a straight line number of demonstrations that maximizes use of the fixed costs and the minimum necessary to resolve the technical problems of economics of heating and cooling in the last 2 years of the 5-year program.






25

To meet the long range plans of the geothermal energy division of ERDA as described in the ERDA document "Creatinz Enerpv Choices for the Future" (ERDA-48) something on theorder of two 50 megawatt geothermal demonstration plants, six or seven 10 megawatt ilot plants and several test facilities would have to be authorized and constructed. For those geothermal projects at the reconstruction stage of development, OMB curtailments will result in delays of a year or more before ERDA may be ready to request appropriations for the pilot plants authorized in last fiscal year's budget.
The broad criteria used in arriving at recommend d levels for additional authorizations were basically the followmg:
(1) The likelihood of industrial matching funds;
(2) The likelihood of a quick realization of energy production or
savings;
(3) The absence of or minor participation of the private sector
due to the high risk and long lead time required before recoupinginvestments in research and development;
(4) Prudent R. & D. support levels to avoid costly overrunsin the demonstration phase. #
The best judgment of the Senate Interior Committee, at this time,. is that the fiscal year 1977 request for nonnuclear ERDA programs should be increased by as much as $300,000,000 above the President's. request. This amount of additional funding will insure that all energy R. & D. programs are adequately funded. As indicated in our report of last year, it is expected that V the nonnuclear R. & D. budget forERDA will increase substantially with each passing year and as the commitments are made towards investments in commercial sized demonstration plants. Costs for construction and operation of these demonstrations will accumulate to several billion dollars within thenext few years. Of course, Congress anticipated such expenditures in passing the Federal Non-Nuclear Research and Development Act of 1974 (Public Law 93-577) which expressed Congressional intent that the nonnuclear R. & D. program would equal or exceed $20 billion over ten years. The recommended budget increase of $3W million results in a total budget for nonnuel ar programs, still well under the $2 billion per year annual budget anticipated in the Federal Non-Nuclear Research and Development, Act.
BUREAU OF RECLAMATION PROGRAM
It is suggested that the Bureau of Reclamation program for fiscal year 1977 be increased by $51 million above the President's request in five activities as indicated in the tabulation.
General investigations.-The general investigations program involves the economic, engineering, and planning activities preparatory to construction of proposed projects. Investigation funding is an investment in the future capability of the Bureau of Reclamation in being able to move construction programs on a timely basis in response to local and national needs. As last year's submittal of the Interior and Insular Affairs Committee to the Senate Budget Committee noted; "increased needs for intensive management of water resources will result from competition between traditional water users and






.26

burgeoning onerY developments." This holds true to an even greater
-extent in light f proposals to develop fossil fuel resources in the 'Missouri and Colorado River Basins. It is recommended that the budget be increased by at least $4 million.
Construction and rehabilitation.-This program is the largest single ,item in the Agency's budget and consists of funding of construction .activities on authorized Federal reclamation projects. It is recommended that $20 million be added so as to increase employment ,opportunities and speed up the availability of water needed for agriculture, industry, and municipalities. .
Not only do local and national economies benefit from short term payrolls associated with the actual construction of facilities; there are also the long-lasting economic and societal benefits derived from
-the establishment of a stable agricultural community. Financial institutions, equipment suppliers, local governments-every segment ,of the economy derives benefits from farming activities which would otherwise be nonexistent without water supplied by reclamation projects. The continued importance of agricultural exports as an
-effective tool in counteracting the increased costs of imported oil and as an extension of international policy cannot be overemphasized.
strong a cultural base is essential to the national and international well-being of the Nation.
Colorado River Basin.-The budget category provides for construction, operation, and maintenance of project-related facilities including facilities for the generation of electricity. It is recommended- that $2 million be added.
Recreational and Fish and Wildlife Facilities.-The program. provides for facilities associated with the Colorado River storage project. It is recommended that $2 million additional be appropriated for fiscal year 1977 primarily to increase employment opportunities and to provide needed facilities in response to increased visitation.
Colorado River salinity control.-This budget category provides funds for construction, operation, and maintenance of project facilities directed toward the enhancement and protection of the quality of water in the Colorado River for use in the United States and Mexico. Funds included in the President's proposed budget for fiscal year 1977 emphasize those works authorized for construction below Imperial Dam by title I of the authorizing legislation, Public Law 93-320. Title II of Public Law 93-320 provides authority for projects upstream of Imperial Dam and is sorely underfunded. An additional $2 million should be added for the program specifically to initiate construction of several of the features authorized in the title' II program.
Loan program.-This program provides funds to local entities
for construction of reclamation project related facilities. Investment in the loan program provides immediate results in several activities; immediate employment opportunities, more efficient utilization
-of previously funded reclamation projects, increased agricultural yields and land utilization.
During the 1st session of the 94th Congress, the Senate Interior Committee held hearings on S. 1794, legislation to amend the Small Reclamation Projects Act of 1956. Testimony before the committee clearly indicated the importance of the program to the farmers of the







27

Western United States. In the 20 years that the program has been in operation, 41 projects have been completed with loans totaling $95 million. Fourteen additional projects are under construction and at least 54 projects are in various stages of consideration.
The President's budget proposal for fiscal year 1977 does not include any funds for new loans in spite of the administration's previous support for the loan program as illustrated during testimony on S. 1794. The committee recommends that at least $10 million be added to the fiscal year 1977 budget request so that new project starts may be undertaken.

ENVIRONMENT AND LAND RESOURCES SUBCOMMITTEE
In recent years, despite the energy crisis and the focus on the mineral potential of the public lands, increasing attention has been given to the renewable resources on national forest and national resource lands. Numerous executive branch reports, including the 1973 Report of the President's Advisory Panel on Timber and the Environment, the 1975 BLM Range Condition Report, and the 1976 Forest Service Forest and 'Rangeland Renewable Resource Assessmnent, have disclosed that the productivity of the Nation's forest
-and rangelands is relatively low and the quality of a significant portion of these lands is declining. In short, the statutory goal of sustained-yield management has not been fully realized. Judicial attention to renewable resources has also increased. Recent Federal court decisions have called into question certain traditional, admainistratively efficient, but, on occasion, environmentally detrimental, timber cutting and range management techniques and required more thorough planning and impact analysis as a prerequisite to decisions of Federal land management agencies affecting renewable resources.
Finally, beginning with the enactment of legislation creating 'thePublic L and Law Review Commission in 1964, teCnrs a
devoted increasing attention to renewable resource issues. Last Congress, the Congress enacted the. Forest and Rangeland Renewable
Resources Planning Act, the Senate passed the National Resource Lands -Management Act, and the Senate Appropriations 'Committee requested and received the 1975 BLM Rangeland Report. This Congress, the latter act has again been passed b 'y the Senate; the Congress has received the assessment of the Nation's forest and rangeland and the 40-year Forest Service program for its renewable resource required by the Resource Planning Act, and later this month hearings will begin on both the National Rangelands Policy Act and legislation to amend or revise the Forest Service's 1897 Organic Act.
Timber and range management programs, wildlife habitat enhancement programs, land and water stewardship programs, and programs designed to enhance developed and dispersed recreation on the public lands are examples of the critically needed and cost-effective resource
management opportunities which should be encouraged. To date, much of the attention given to renewable resources has been in the form of study, assessment, and planning, not substantial budget increases. These initial activities have now been largely completed. To begin the more costly implementation of the decisions which have






no
40

resulted or will flow from these activities will require a significant,, increase in funding levels. In order to meet the sudden and severe, demands resulting from the so-called energy crisis, recent budgetshave emphasized the nonrenewable resources over the renewable resources. Although the fiscal year 1977 budget must continue to place substantial funds in energy-related public land programs, no significant additional increases in these budget categories are necessary. This leveling off of energy-related funding needs would permit a. modest shift in budgetary emphasis to renewable resources at exactly the time when the Federal Government stands ready to translate its concern over the conditions of these resources to action to preserve, rehabilitate, and make more intensive use of them. Many of these actions would create much needed jobs.
The subcommittee has the following specific recommendations:
Bureau of Land Management
Fiscal year 1977'
increase,
Adivity thousands
Management of lands and resources --------------------------------- 15,370
Range and forage management---- --- 81000
Recreation management 400
Planning for multiple use management -------------------------- 2,300
Forest management ------------------------------------------- 3,400
Lands and realty programs ------------------------------------ 770
Wildlife management ----------------------------------------- 500,
Construction and maintenance -------------------------------------- 77400.
Total ----------------------------------------------------- 22,770
Range and forage management.-The increase would be used for
(1) supervision and evaluation of existing gr range use; (2) making adjustments in or further implementation of most of the existing allotment management plans; (3) implementing 90 of the 280 allotment management plans which have been prepared but not implemented; and (4) gathering nd analyzing the data necessary to begin repaxation of the 211 environmental Gnpact statements which will e required in the preparation of the remaining allotment management plans. These additional funds will not be sufficient to permit the BLM to meet the critically needed funding requirements to initiate the 20-year range rehabilitation program which the Bureau outlined in its January 1975 Range Condition Report requested by and submitted to the Senate Committee on Appropriations. Pending before the, Comm ittee is S. 2555 which would implement that program and provide the necessary appropriation authorizations.
Recreation management.-There are two areas within the BLM's recreation Droeram that would show large benefits from relatively small increases in funding:
(i) The amount of $200,000 for river and trail management
would help provide for the development of activity plans for three trails and five rivers. The additional funding would also provide BLM with the capability: to coordinate with the Bureau of Outdoor Recreation in preparing seven wild and scenic river studies in which BLM has major *involvements and four studies in which the Bureau's role is relatively minor. This additional







29

funding is necessary if the October 2, 1979 deadline for river
studies set forth in Public Law 93-621 is to be met.
(ii) The amount of $200,000 for primitive area management
would help provide for the development of activity plans, measure and monitor visitor use, and plan for facilities needed in or on
the perimeter of four designated primitive areas.
This additional funding is a minimal request in terms of the BLM's
*overall primitive area program. Additional funds are also needed on NRL's for the 11 designated primitive areas; the 27 additional areas awaiting designation; and the 75 additional potential areas that have been identified. In all these areas, pressure for the development of natural resources and increased recreational pressures are growing.
Planning for multiple use management .-T he suggested increase of $2.3 million would allow slight acceleration in the present management framework plan (MFP) preparation schedule and allow the Department to focus on those BLM lands subject to intensive energy development. Although nearly 65 percent of the BLM lands -are covered by MFP's, many do not adequately assess soil and 'environmental values, since the first generation plans were based on existing data only. In addition, many of these MFP's are becoming rapidly outdated because of increasing competition for use of the BLM lands. The ,additional funds would permit the updating or revision of the most seriously deficient existing MFP's. In addition, at current funding levels 4 more years will be required to complete, the remaining first generation MEP's. In that same time, BLM expects to make decisions on over 8 million simultaneous oil and gas filings; issue over 90,000 oil and gas leases; harvest about 4.8 billion board feet of timber, process over 38,000 transfer and lease applications, issue a significant number of coal leases and prepare a goodly number of allotment management plans. Public opinion, statutes (particularly NEPA), and ag.'ency practices, demand that BLM maintain an adequate planning base in advance of those decisions. Without additional funding, -the planning may not keep pace with the required energy and renewable resource decisions, thus introducing the threat of delays in those decisions, or a strong possibility that decisions to permit energy resource development will be made without adequate information about the impacts of such development.
Forest management.-Approximately 1.9 million -acres of BLM administered lands in western Oregon are classified as available for timber production. Currently, the annual offering on a sustained yield basis from these lands is 1.172 billion 'board feet or 92 percent of the Bureau's total timber production and nearly 20 percent of the total wood harvested in western Oregon. The annual production supports 13,500 primary jobs and 20,000 secondary jobs (retail trade, services, and so forth). These jobs represent 8 percent of the total employment in the region, but range as high as 35 percent in some local areas. The additional funds recommended by the committee are needed to insure that money will be available for advance planning
-efforts, implementing tree improvement programs, and providing additio-nal access road construction.
In the recent past, BLM was able to maintain the allowable cut without a similar budget increase because the agency had at one time
done planning f ar in advance. Where advance planning ran out, the






30

most readily available timber requiring little or no leadtime for sale preparation was offered and clearcutting, with its attendant administrative efficiency was more widely employed. The exhaustion of areas covered by long leadtime planning or with -readily available timber and the reduced use of clearcutting have resulted in unusually heavy pressure for a budget increase in this category.
Without this funding increase, it is doubtful- that the maximum sustained yield of 1.172 billion board feet can be sustained in fiscal year 1977.
Lands and realty program.-In order to increase the capability of' nonenergy lands casework in fiscal year 1977, the committee recommends an increase of $770,000 in the following areas:
(i) In order to fulfill the basic objectives of the Alaska Native,
Claims Settlement Act-to process Native selections to final patent as rapidly as possible and to permit the Congress to act on the national interest lands legislation before the' 1978 dead line set forth in section 17(d) (2),of ANCSA-public easements must be identified, reserved, posted, and managed. The increase suggested, $170,000, will accomplish: 100 easements located and posted, 50 signs maintained, 6 easement permits issued; one public information brochure issued; and one management
agreement signed.
(ii) Accelerated public use and demand for resources over the.
past several years have intensified management requirements, and are adding significantly to the workload in traditional Bureau realty programs. As a result, land use casework backlog has been increasing annually from 12,173 cases at the end of' fiscal year 1971 to 20,732 cases at the end of fiscal year 1975.
This represents a 70-percent increase in backlog over the past 4 years. The committee suggests a $600,000 increase over the President's recommendation to accommodate this growing
backlog.
Wildlife management pro gram.-The committee recommends that $500,000 be added to the BLM budget for its wildlife program. Additional funding is needed to solve problems relating to (1) habitat deterioration in initial fish and wildlife habitat areas, and (2) protection and enhancement of habitat areas for threatened or endangered species. About 40 percent of the wildlife and fish habitat on BLM land is in unacceptable condition. The percent decline from satisfactory condition to, unsatisfactory condition is about 3 to 4 percent annually and there is a concomitant decline in wildlife populations., The current level of funding of about one penny per acre for wildlife habitat management programs does not permit BLM to meet its. responsibilities.
Construction and maintenance program.-While the overall level of' construction funding in the President's fiscal year 1977 budget is similar to prior years, it does not include requirements outside of' Alaska or any recreation projects. The suggested $7.4 million increase would be used to help fund a variety of construction needs including warehouse and storage facilities to complete prior year construction at Craig, Colo., and Shoshone, Idaho; office, shop, and storage space for a recently 'established resource area headquarters in Cedarville,. Calif.; a water system and messhall for a fire base in McGrath,






31

Alaska; and a district office in western Oregon. Near term (5-10 years) plans call for four new district offices, and a district office.
complex in either Medford or Salem, Oregon Districts. Because of* program and personnel increases, new office complexes are urgentlyneeded in both Medford and Salem and site acquisition is underway at both locations. The location whose site is acquired first should be.
constructed in fiscal year 1977 and the other in fiscal year 1978.
Needed recreation construction projects include: Yuha Way Sta-I tion for administration of BLM's critical California desert program;and administrative centers for the ongoing Little Sahara Recreation Aree4 in Utah; and a contact center for the Aravaipa Canyon Primitive.
Area in Arizona.
Forest Service
Fiscal
year 1977
increase,
Activity thousand.
Forest protection and utilization --------------------------------- 23, 300,
Recreation use---------------------------------------------- 8,000Wildlife habitat management ------------------------------- 10,700,
Rangeland management------------------------------------- 2, 500
Watershed restoration --------------------------------------1,1750.
Wild and scenic rivers studies---------------------------------- 350Construction and operation of recreation facilities -------------------10, 000
Youth Conservation Corps ------------------------------------- 50, 000,
Total-------------------------------------------------- 83, 300

Recreation .-In recent years, approximately 300 recreation facilities
in the national forests have been closed and several thousand faciitie&.
have been open for shorter seasons because of lack of funding. Additionally, the inability because of low budget levels, to provide appropriate maintenance on facilities which are open has reduced userenjoyment and hastened deterioration of improvements and sites., The requirement that pollution abatement equipment be installed at many Forest Service recreation facilities has added significantly to.
the costs of operation and maintenance. In an effort to reopen someof these closed facilities and provide the needed maintenance on others, the committee recommends an $8 million increase over the.
President's fiscal year 1977 funding level.
Wildlife hatbitat management.-At the present time there are some 17approved Federal/State plans for improving wildlife and fish habitat which cannot be implemented because of a lack of funding. Imple-mentation of these programs is particularly important given the continued deterioration of wildlife habitat, particularly the rapid destruc..
tion of winter range and forage resources by subdivision development and the increased competition between wildlife and domestic livestock for the remaining forage. The committee recommends an increase, of $10.7 million over the President's recommendation in order to im.
plement these habitat improvement programs.
Ran~geland4 management.-Although the national forest ranges are
capable of providing more and better grazing to help meet increasing needs for red meat production, this can be accomplished only if increased investments are made to produce more grazeable forage,








and to correct unsatisfactory range conditions. The. $2.5 million
-increase suggested by the committee would be used for (1) capital improvements by constructing fences and water developments to
facilitate proper livestock distribution and management and seeding of range sites with high potential for forage production ($1.5 million), and (2) maintenance of existing range facili'llies and strengthening of range planning ($1 million). The resulting range improvements, range planning, and maintenance would accelerate the rehabilitation of national forest rangeland which is in uinsatifactory condition.
Watershed restoration.-There is a serious backlog of watershed restoration work on the national forests. Many areas require the appli-cation of treatment measures involving large capital, investments to restore soil and site productivity or to protect water quality. Other areas, because of their naturally low herbage productivity, potential, will gradually be removed from grazmg allotments as range improvement practices increase the livestock carrying capacity of more productive areas. A major portion of the soil stability problems on these areas can be corrected over time through management practices if sufficient funding is available.
The $1.75 million increase suggested by the committee would help to accomplish initial watershed treatment on approximately 30,000
-more acres than would be possible under the President's recommendations. These additional acres require early attention to prevent further rapid deterioration and avoid a much higher ultimate restoration cost.
Wild and scenic rivers studies.-The Wild and Scenic Rivers Act provides that the President shall report to Congress his recommendations by October 1, 1978, for the original 27 study rivers. An amendment to the act (Public Law 93-621), which designated 29 additional study rivers, provides that reports on these be submitted by not later than October 2, 1979. The Department of Agriculture, through the Forest Service, has study leadership responsibility for 9 river studies of the original 27 and will provide leadership on 13 and share leadership with the Department of the Interior on 3 others of the 29 new study rivers. Without additional funding during fiscal year 1977, the Forest Service will be unable to maintain their study efforts at a steady pace. Instead, to meet the reporting dates, the Forest Service would be forced to concentrate a major effort in fiscal years 1978 and 1979. Therefore, the committee would recommend a $350,000 increase during fiscal year 1977 in an effort to avoid such a bottleneck in the following fiscal years.
Recreation construction and reconstruction-Tbere exists a large
-accumulation, estimated to be well over $200 million of recreation construction and reconstruction needs on the national forests. While it will take several years to reduce such an accumulation, the com. ttee feels that the Forest- Service could effectively use an additional
$10 million in fiscal yeax 1977 for construction and reconstruction of the most critically needed recreation facilities projects would include:
(i) Replacement of facilities that are worn out and uneconomical
to operate;
(ii) Upgrading of recreation facilities, particularly water and
sanitation systems, to meet recently established standards;






33

(iii) Completion of facilities at reservoir projects, for example,
roads, parking, and picnic facilities which are already in place;
and
(iv) Provisions of recreation facilities at reservoirs constructed
by public bodies for recreation and other purposes.
Youth Conservation Corps.-By amendment in 1974 (Public Law 93-408) the Youth Conservation Corps has an annual authorization of $60 million. Funds appropriated for the YCC program in 1976 total $35 million. The administration expects to split the $32 million remaining for fiscal year 1976 between fiscal year 1976 and fiscal year 1977 and has submitted a budget deferral to this effect. As the deferral request will likely be denied, the President's proposal for no new funding for the YCC in fiscal year 1977 means no YCC program for that fiscal year.
The committee believes that the State and Federal Governments could absorb at least $50 million of the $60 million authorized for fiscal year 1977.
Council on Environmental Quality.-While the President's fiscal year 1977 budget for the Council on Environmental Quality provides adequate funding levels, it calls for a 12-percent reduction in permanent positions. In fiscal year 1975, the Council enjoyed 50 permanent positions, while in fiscal year 1976, the number was reduced to 44. This latest proposed reduction would leave the Council with only 40 such positions. Although the Council contracts for many of the services it provides, there is a great deal of in-house work that must be performed by full-time competent, and professional staff. This includes the provision of policy advice to the President, the preparation of the President's environmental program, and similar policy analysis and advisory functions. The subcommittee recommends a staff increase of 6 permanent positions to restore the staffing level to the 50 permanent positions permitted in fiscal year 1975.
PERSONNEL SUMMARY
1975 1976 1977 Staff
actual estimate estimate suggestions
Total number of permanent positions ------------------ 50 44 40 50
Full-time equivalent of other positions ----------------- 12 12 12 12
Average paid employment ---------------------------- 60 54 50 60


INDIAN AFFAIRS SUBCOMMITTEE
ROAD CONSTRUCTION
The BIA is requesting $74 million for road construction on Indian reservations for fiscal year 1977, $46,795,000 of this is under :authority of the Federal-Aid Highway Act Amendments of 1974 which includes authority for Indian highways. However, this authority has lapsed and is with the jurisdiction of the Public Works Committee, in .any event.
However, $27,205,000 of the amount is authorized and appropriated under authority of 25 U.S.C. 318a which is clearly within the jurisdiction of the Interior Committee.






34

In view of the extreme need for Indian roads and the heavy backlog of demands for construction the committee, is recommending an increase in the section 318a appropriation of $10 million. Z

INDIAN RIGHTS PROTECTION
The decision of the Ninth Circuit Court of Appeals affirming the decision of the Federal district court in the case of U.S. v. Washington (certiorari denied by the Supreme Court) upholding the right of Indian tribes to exercise treaty fishing rights at off-reservation sites free of State regulation continues to create turmoil and confusion for both Indian and non-Indians in the Northwest.
In carrying out its trust responsibility in aiding the tribes in meeting the requirements of that decision, the administration is requesting $1 million, a net decrease of $1,152,000 from the 1976 funding. The problems associated with that decision have increased, not decreased, over the last year.
Therefore, the committee is recommending that the funding level be maintained for this item by adding $1,152,000 to that account.

SCHOOL CONSTRUCTION
BlAfacilities.-Out of $16,633,000 requested by the BIA for building- and utilities construction, only $6,620,000 is allocated to BIA school facilities. The backlog of needed BIA school construction is estimated at about $170 million. In light of the totally inadequate BIA requests for this need (which it admits only meets emergency situations) and in light of budgetary constraints, the committee is recommending the increase of $6 million.
It is expected that, if these additional funds are appropriated they would not be used in violation of the BIA policy of phasing out to the extent practical, its on- and off-reservation boarding school operations.
Public school facilities.-Public Law 93-638 authorized appropriations of $35 million for fiscal year 1977. The administration is not only not asking for funds for fiscal year 1977, but are requesting a deferral of funds added by Congress for this program in fiscal years 1975 and 1976. The need for school construction for public schools enrolling Indian children whose parents live and/or work on nontaxable Indian lands is severe. Many such facilities are condemned by local governments. Yet, they must be used if Indian children are to receive an education. The committee, therefore, recommends full funding for this program.
If appropriated, the committee intends that the funds be expended in accordance with the priorities set forth in section 204 of Public Law 93-683.
OPERATION OF INDIAN PROGRAMS
9lohnson-O'Malley pro gram .-T he recommended increase In Johnson-O'Malley funding of approximately $10 million over the President's request is justified on the basis of increased demands from reservation public schools and Indian education organizations for JOM funds. To meet the continuing financial needs of reservation public schools without imposing impossible and unjustifiable burdens on a limited tax base additional Federal assistance is necessary. The Johnson-O'M alley program can, if funded at increased levels, provide such assistance. In addition, under the current JOM regula-






35

tions Indian organizations have been encouraged to participate in the program by submitting requests for assistance for programs to meet the special educational needs of Indian children. To accommodate this program initiative without jeopardizing traditional public
school needs additional funds are needed
Law enforcement.-It is estimated that the overall inflation rate
affecting the 1977 BIA budget may be as high as 10 percent. The BIA is recommending a net decrease in the fiscal year 1977 funding under
fiscal year 1976 funding of $13,000.
In their justification, the BIA states that the amount requested is
the minimum adequate level to contain crime on Indian reservations.
Crime ought not to be contained as a goal, but eliminated.
In view of budget restraints, however, the committee is recoinmending an increase of $2,433,000 so that the program level, after
7 inflation adjustment will remain even with fiscal year 1976.
Business enterprise.-The request for $12,119,000 for the business
enterprise development item in the BIA'budget is a net decrease of $467,000 over fiscal year 1976; $8,500,000 of the requested amount is appropriated under authority of section 401 of the Indian Financing Act of 1974. Section 403 of that act authorized the appropriation of $10 million for fiscal years 1975, 1976, and 1977. This program has been extremely effective in establishing Indian-owned businesses and
in creating jobs for Indian people.
The committee feels that this program ought to be funded at the
maximum amount in its last year of authorization. It therefore, recommends increasing the overall request by $1,500,000.
Roads maintenance.-The BIA states in the fiscal year 1977 budget
justification that it expends approximately 40 percent of what States and counties expend on road maintenance. This amounts to $368 per
mile.
The Bureau is responsible for maintaining 24,642 miles of roads on
179 Indian reservations. An adequate road ~system, well maintained,
is vital to Indian education, health, and economic development.
The proposed addition to the road maintenance item would permit
the BIA to expend $497 per mile or 54 percent of the amount spent by States and counties. Even at this increased rate, the road system will continue to deteriorate inordinately, requiring costly, premature replacement. The committee recommends an increase of $1,500,000.

INDIAN HEALTH SERVICE
These additional funds are required to maintain vital health services
for Indian and Alaska Native people:
Claremore Hospital .-T he, President's budget omits funds for 130
positions and $1,686,000 required to staff the Claremore Hospital
now under construction.
Contract health care.-Based on unbudgeted cost increases in 1976
for contract health care, an additional $3,800,000 will be required in fiscal year 1977 (as well as 1976) to continue the 1975 program level
for hospitalization and physician services.
Hospital construction.-An increase of $39,410,000 is required to
permit the initiation of new construction of an IRS hospital at Winslow, Ariz., $5 million; continued construction of an IHS hospital at Santa Fe, N. Mex., $5,400,000; continued construction of an IRS







36

hospital at Bethel, Alaska, $15 million; continued construction of an 111S hospital at Cherokee, N.C., $3,600,000; continued construction of an IRS hospital at Red Lake, Minn., $4,200,000.
Clinic construacton.-Additional funds are required for the construction of IRS clinics at Lummi, Wash., $590,000; and Haskell Institute, Kans., $1,210,000.
Sanitation construction.-Additional funds under this category are necessary to insure that water and sanitation facilities will be provided for new and existing homes in the Indian community, $36,555,000.
Personnel quarters.-An additional $1,210,000 is necessary to provide 28 units of staff quarters for personnel stationed at isolated locations.


MVIINEIRALS, MATERIALS AND FUELS SUBCOMMITTEE
U.S. GEOLOGICAL SURVEY
The President proposed budget for USGS represents a net increase, of $11.8 million over fiscal year 1976. However, it in fact includes pro-gram reductions of over $20 million in such areas as geological research, basic geology7, environmental research, offshore oil and gas resource appraisals, basic water resources research and topographic mapping. All these programs are critical elements of the Earth sciences mission which Congress has assigned to USGS. What has happened is that high priority energy-related programs are being increased rapidly at, the expense of these programs. The committee believes that we cannot continue to starve these very important programs.
Several activities must receive more funds and staffing. Most im-1 portant are several water resource programs. The committee recommends the following increases: (1) An additional $3.2 million and six new positions should be devoted to completing and operating a na-tional water quality monitoring system related to land-use planning,
(2) $2 million and four new positions are needed for a data network covering flood forecasting, environmental hazards and water use options, (3) The matching funds for ongoing Federal-State coopera-, tive programs of hydrologic information for coastal zones, Indian lands and other areas should be increased in the amount of $5 million and 150 new positions.
An historic survey function which requires modernizing both of equipment and technique is topographic mapping. Other governmental agencies, industry and the public stand to gain directly from an investment of $5 million and six new positions in upgrading the collecting, editing, m anipulating, and distribution of digital cartographic data in particular.
Energy minerals.-T here are two areas of the Survey's budget in the energy category that deserve more attention. Geothermal energy, the importance of which is evidenced by successful w ells drilled on Federal lands and by the expansion of ERDA's program is in urgent need of funding for site-specific studies and: other such projects, in the amount of $6. million and 105 new -positions. By the same token, the inadequate funding an d staffing of the Survey's OCS tract selec-. tion and evaluation efforts have greatly hampered the effective iden-. tification of tracts having the highest i'esource potential and the lowest environmental risk. The comnmittee'believes that $3.9 million and 20 new positions should be added.




.............. ... ...... . .................. .


37

As indicated, all of these unfunded programs require additional staff. Although contracting and grants may take up some of the slack, there is actt ally no substitute for more personnel, particularly with regard to the geothermal research.
There are two other energy-related programs which undoubtedly will require. additional funding.
These are (1) Federal coal evaluation and (2) geological and geophysical data collection on the Outer Continental Shelf.
In recent oversight hearings on Federal coal leasing, the General Accounting Office, based on an as yet unpublished study, strongly recommended increased fundincr for Federal coal evaluation programs. However, the Department of the Interior has not responded to the committee's request for its comments on the GAO study. The committee understands that the administration plans to seek additional funding for the coal leasmg program i6a a budget amendment or supplemental request currently being prepared.
A second major potential funding shortfall is the acquisition of geological and geophysical data about the oil and gas resources of the Outer Continental Shelf.
The Department of the Interior has adopted regulations that require a submission of the U.S. Geological Survey of all geological and geophysical data gathered by private industry. The initial proposal required the industry to submit both raw and processed data and provided for no payment by the Government.
In adopting the regulations, the Department, however, said that it would pay the costs of preparing the processed data. Data processing costs are at least equal to and frequently greater than data gathering costs. Without a budget increase of several million dollars, the end result of this policy would be that government will have much less useful information about its resources than had been previously anticipated.
Despite concern expressed by the committee, the President's budget does not take this increased cost of data acquisition into account. The result will be continuation of the present ridiculous situation in which the Geological Survey has received many boxes of data which remain unopened because of lack of funds to pay for processing costs. The committee has requested a full report from the Department on this situation and may well be suggesting a major funding increase for fiscal year 1977.
Nonenergy minerals.-In light of the accumulating evidence that the Nation probably will soon face serious shortages of a variety of ponenergy minerals, the committee believes that we must expand, albeit modestly, the geologic investigations being carried out by USGS. This is one of the basic purposes for which the agency was established.
The committee is recommending the following limited increases. First, an additional $4 million is necessary to upgrade assessment, analysis, and prediction techniques for mineral resources. -Second, an additional $0.5 million needs to be earmarked for the expansion of computerized files of domestic mineral resource information. These two programs need 20 new positions. Finally, if ocean m**g is to realize the enormous potential it holds for our national mineral requirements, the systematic geological assessment of the deep






38

seabed is imperative. The estimated cost of this program is $2 million and five new positions.
BUREAU OF -MINES
Congress has assigned to the Bureau of Mines three basic missions relating to mineral development and use. These are (1) scientific and technologic investigations, (2) collection and dissemination of mineral information, and (3) analysis and recommendations on U.S. mineral policies and programs. As is true with a number of other Interior Department programs, the proposed budget reflects a high priority on energy-related programs at the expense of nonenergy programs.
While the President's proposed budget includes some needed increases for research and development in coal mining and preparation technology, it leaves static or actually decreases vitally needed programs relating to mine health and safety, air pollution control, and advanced metallurgy research.
It should be noted that ERDA's budget received a 30-percent increase in coal research, whereas the Bureau's coal extraction and mining techniques budget remains inadequate. This imbalance must be rectified.
Furthermore, the lack of sufficient personnel to carry out assigned program responsibility is beginning to represent a more severe constraint for the Bureau than the availability of funds. Funds for the Bureau have more than doubled since fiscal year 1973, while the personnel ceiling has actually decreased. Moreover, the need for personnel in contract-oriented programs is no less real than the need for personnel to conduct in-house programs. The committee is aware that even though needed research is increasingly being contracted out, there must still be sufficient staff to develop work statements, conduct proposal evaluations, and monitor progress on active contracts in order to insure full value for money expended.
Coal mining technology.-The largest single component of theBure au's mining research program deals with the development of improved coal mining technology which would facilitate increased coal production with minimum economic, environmental, and social cost.
The coal mining technology program has since its inception in 1974 been a contract research effort. Decisions on any given contractual action are dependent on timely, information on technical progress, updated economic and engineering analyses, and a number of other variables. To be cost effective these decisions must be made on the basis of an overall research strategy. The committee believes that there are two activities which warrant expanded funding.
One of these is related to surf ace coal mining. Large volume surf a c e coal mining operations appear to be a prime necessity in our country's efforts to expand coal production, at least for the near term. Much of this production will come from western mines. Bureau of 'Mines surveys indicate that production from early all of these mines is limited by their capacity to remove overburden as opposed to their ability to excavate, prepare, or load the coal. The piece of equipment typically used for overburden removal is the large dragline. its limitations impact both the overburden removal and rec amation. Several concepts for cross pit overburden handling systems have been







39

dveloped which appear to offer the potential for increasing dragline production 30 plus percent while blending the reclamation into the mining process. Under prese nt funding limitations only one of these concepts is likely to be funded to completion.
The other area is that of high speed mine development for underground coal mining. 1Ihis relates to the process of creating openings to and through the coal seam to allow mining to p~roceed. '1 he process of mine development is8 a acingy item in both the expansion of exis,-tinig underground mines and the opening of new mines. If additional funds were available to the program, research could be started on the development of improved entry boring equipment which would build ongoing Bureau research to bring new equipment to the field trials stage years earlier than would normally be possible.
Ihe committee recommends an increase of $4 million for these programs. Since both are equipment intensive and would be done under contract, only five positions are needed.
Coal preparation.-T here is general agreement that coal must replace petroleum and natural gas as fuel for utility plants and process heat and that demand for low sulfur coal will increase. The Bureau of Mines has therefore intensified bench-scale research for removing sulfur and ash from coal and to improve the overall technology of coal preparation. Although much of the research has been highly successful, the transfer of laboratory technology to commercial practice is slow and chancy without an intermediate step to demonstrate the technical and economic feasibility of new technology. The committee recommends that $4 million be added to the budget for design and construction of a coal preparation pilot plant. The plant would contain conventional equipment common to the coal and minerals industries, that could be arrayed in a number of confi gu rations. The availability of reliable operating data and equipment cost data would encourage coal producers to adopt the new technology.
The $4 million would be used to construct the coal preparation pilot plant and to pay salaries of five engineers who would monitor the construction of the plant including installation of all the instruments required for obtaining operating data.
Al1etal and nonmetal mine health and safety research .-Although advancements have been made, technologic inadequacies exist across the board in metal mine health and safety problem areas. Accident statistics indicate that there has been no significant improvement since enactment of the Federal Metal and Nonmetallic Mine Safety Act of 1966.
As the per capita demand for metals and minerals and the uncertainty of foreign exploitation increases, mining must proceed into less desirable domestic ore bodies in terms of lower grade and more difficult mining conditions. As mines go deeper, higher rock pressures, temperatures, and humidityr can create significant safety and health hazards. Solutions to alleviate these hazards are vitally needed to keep pace with new and expanding mine operations.
The committee recommends an increase of $3,950,000 and 20 positions fcr health and safety programs. The requested increase would provide funding for critical R. & D. work in the following areas:
-Noise control in beneficiation plants and underground working
places. Since enforcement of noise control regulations began, over 900 active notices have accumulated on violations, in






40

metal and nonmetal operations. Effective technology for noise control is urgently needed to preclude future violations.
prevention of fatalities and injuries from falling roof, ribs,
and faces. Additional funds would be added to base program to accelerate the development of reliable means for detecting unstable ground ahead of mining and for calculating support
requirements for safe mine design.
-Optimized safety designed ore transportation systems. As
haulage costs have increased the size of trucks, bulldozers, front-end loaders, and so forth, to mammoth proportions, immediate needs exist for R. & D. efforts in driver/operations, visibility and control of these heavy vehicles on steep grades.
-Control of respirable dust. Silicosis is still a health problem. An
accelerated study of means to alleviate this problem is needed.
-Adequate ventilation of large mine openings and areas collecting dead air. A total of 11 fatalities from oxygen deficiency occurred during the period April-June 1975. New techniques should be investigated to aid in the abatement of this and other
hazards.
-Safe use of diesel haulage. equipment in underground mines.
Techniques for controlling and measuring diesel exhaust funles are inadequate. New funds would expand the ongoing work to pinpoint critical hazardous conditions and ways to avoid these problems until a permanent solution to scrubbing diesel
exhaust fumes can be developed.
-Expanding radiation hazards in uranium mines. As mines go
deeper, radiation problems increase in severity and complexity,
More extensive testing should be performed.
-Education and training programs. Present training practices o
may be outmoded as evidenced by increasing injury frequency
rates. New Drogyrams should be devised and fully tested.
-Standards. An expanded effort should be undertaken to define
key technologies critical to new or revised standards planned
for the next 3-to-5-year-period.
Metallurgy research.-Several metallurgy research programs should have increased funding if research and development for the expanding problems of five critical minerals-aluminum, iron ore, chromium, platinum, and nickel-are to proceed in keeping with national needs. The committee recommends the following increases:
(1)'Advancing minerals technology ($1,443,000) to develop
extraction techniques from low-gradp ores;
(2) Effecting pollution abatement ($900,000) to refine flue
gas scrubbing techniques;
(3) Secondary resource recovery ($400,000) to attempt to
uncover new methods of recovering useful minerals from mill
and mine wastes; and
(4) Minimizing mineral and metal needs ($100,000) to concentrate on development of oxidation-resistant coatings for
in molybdenum as a substitute for nickel and cobalt alloys.
Data collection and analysis.-There is an urgent need to improve our national data collection analysis capabilities with respect to energy and other minerals. The committee is currently considering legislation (S. 1864) to establish a national energy information system.






41
Proposals for nonenergy mineral information gathering and analysis are also before the committee (e.g. S. 522). Furthermore, the National Commission on Supplies and Shortages is reviewing this issue and is
scheduled to report at the end of this year.
In addition to the current reviews of existing programs, the committee is concerned about the Bureau of Mines' ability to maintain scientific objectivity and professionalism. The undocumented and unsubstantiated analysis of H.R. 25, the vetoed surface miming bill, is one example of this problem. The committee's doubts as to the Bureau's credibility and competence have been given added weight by GAO investigations uncovering weaknesses of the program.
Therefore, the committee has concluded it will not recommend any increases for data collection and analyses before (1) conducting its own oversight hearings and (2) receiving a report from the Department of the Interior describing what actions it intends to take with respect to the recommendations of the General Accounting Office in the December 1975 report, "Federal Materials Research and Development: Modernizing Institutions and Management", OSP-76-9.
The committee is particularly interested in the potential for enlarging the role of the Smithsonian science information exchange
outlined by GAO.
MINERAL EVALUATION OF ALASKA LANDS
The committee is currently considering legislation to place 40 to
105 million acres of public lands in Alaska in either the National Forest, National Park, National Wildlife Refuge, or National Wild and Scenic Rivers Systems. These proposals stem from the provisions of section 17(d) (2) of the Alaska Natives Claim Settlement Act of 1971. Some of these lands may well. contain significant mineral values. Congress needs the best possible information about all the resource values of public land& when it is considering limiting their use as would be done if lands were put into certain national conservation systems.
Both the Bureau of Mines and the U.S. Geological Survey are
currently carrying out mineral surveys on public lands included in the legislative proposals cited above.' Congressional action on these proposals is expected no later than December of 1978, as provided in section 17(d)(2) of the Alaska Natives Claims Settlement Act. The committee is concerned that the current rate of funding for these surveys will not provide the needed information in a timely manner.
The committee is also concerned over the fact that the current survey program deals solely with the approximately 80 million acres recommended for addition to the national systems by the Secretary of the
Interior.
In order to fully understand the trade offs being made by limiting
mineral development on a particular area of Federal land 'in Alaska, the committee needs better information about the mineral 'values of public lands in Alaska which will not be subject to limitations on
mineral development.
The committee recommends the following additions to the budget in
order to provide the Alaska mineral information in a timely fashion:
Bureau of Mines-$1.6 million and eight people;
USGS-$10 million and 160 people.
d






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BUREAU OF LAND MANAGEMENT-ENERGY AND MINERALS MANAGEMENT
The President's budget provides adequate funding for energy and mineral programs except for Federal coal leasing. The budget does not provide any additional funding for coal leasing despite the announcement of the Department's new coal leasing policy on January 26, 1976. Preparation of regional environmental impact statement& will be the primary added workload requirement for BLM in fiscal year 1977. Existing personnel with specific skills needed in EIS development are being utilized to capacity. Thus added capability to undertake the coal regional EIS's and site specific environmental assessments will be necessary. Operation of the energy minerals activity recommendation system (EMARS) may also require increased capability, particularly in processing nominations and in tract selection where a great deal if effort is necessary for coordination among Federal agencies (BLM, GS, Forest Service) and with affected State governments.
As already indicated, the administration is preparing a request for additional funding for the coal leasing programs. This presumably will include funds for both BLM and USGS.
The committee intends to review that request carefully and may make recommendations on it. In view of the current uncertainty over the size and timing of the coal leasing programs,' it is difficult to estimate what level of funding would be adequate, although it probably will be in the $3 to $7 million range.

BLM-OCS BASELINE STUDIES PROGRAM
The President's budget proposes an increase of $4.9 million for OCS baseline and monitoring studies which will bring this rapidly expanding program to a total of $46.6 million. Under this program, key biological, chemical, geological, and physical data are gathered. Those parameters are measured again during the monitoring phase to identify changes in the environment and attempt to distinguish which changes are the result of oil and gas operations.
The purpose of conducting environmental baseline studies in the offshore areas, according to the Department of the Interior, is to provide information for more informed decisionmaking in the Outer Continental Shelf oil and gas leasing procedure. Information derived from these studies is to be used in making leasing decisions, in developing regulations applicable to production, and in monitoring environmental impacts during production. The committee strongly endorses the concept of the program. However, the committee is concerned about how the information developed can and will be used in the decisionmaking process of leasingOCS lands and managing orregulating subsequent OCS activities.
Legitimate questions about the baseline program have been raised by several recent studies and by members of the scientific community and representatives of various coastal States. These questions concern the scientific merit of the program as it is being conducted, the useful-ness of studying deep-ocean areas almost exclusively when the nearshore and onshore areas will experience more severe impacts from offshore production, and the timing of the studies in relationship






43

to environmental impact statement preparation and actual lease sales.
It is the vague relationship between these studies and any decision making process that is principally at issue. If there is little or no relationship between the studies and management decisions by Federal or State Governments, then-the value. of the investment in them is questionable. If the studies do not include environmentally sensitive regions such as nearshore waters or do not provide adequate scientific evidence, then the value of the results are questionable. These questions are particularly important in light of the current need for fiscal restraint and the justification necessary for increased Federal expenditures. Funding for the program has gone from zero in fiscal year 1974 to $20.5 million in fiscal year 1975, $42.7 million in fiscal year 1976, to the request in fiscal year 1977 for $46.6 million.
In each case to (late lease sales are planned before any data from these studies is available. It is evident that the environmental studies to date are not useful for either the EIS process or in making current decisions to lease since they are not completed in time to be used. It is also not clear whether or not later OCS management decisions could or would be effected by data from environmental studies.
There are also questions as to the data and results. Many scientist ; claim that the studies are not well planned since they attempt to solve too many complex problems within unrealistic time frames, and that study efforts are hopelessly fragmented. A priority of important subjects should be established if meaningful results are to be obtained. Thus, from a technical standpoint, from a usefulness to management perspective, and from a fiscal responsibility position, it is critical that this potentially worthy program be effectively managed.
The baseline studies program over the next 10 years is likely to cost over $400 million. As presently constituted, the studies are long term and technical in nature. They appear heavily oriented to scientific inquiry rather than toward various decisionmakers' needs for information. Though the information may be valuable in the long run rather than in the short term, a better justification of present activities needs to be established given the forecast of expenditures.
The committee i's aware of legislative proposals that would shift responsibility for the baseline program to the National Oceanic and Atmospheric Administration (NOAA). The committee does not support such a transfer. Under the existing program, over half of the studies are being managed by NOAA under Interior direction, and many are subcontracted to private enterprise. The committee understands that the NOAA-managed studies are no better than those managed bv Interior and usually cost more.
The committee recommends that the initial fiscal year 1977 appropriation for this program be kept at the current level of $41.7 million rather than $46.6 million. The committee believes that any future funding should be withheld until the Department of the Interior furnishes two reports to the Interior and Budget Committees. The first should describe in detail the future (5 to 10 years) environmental and monitoring studies anticipated, the amount of funds necessary for the studies, the agencies and personnel likely to be requested to participate, and the specific management decisions antici-






44

pated at the Federal and State level for which the information will be useful. The second should be a detailed justification of the technical nature of the baseline program in terms of rational present and future national needs.
PHASE II OF DEEP OCEAN MINING ENVIRONMENTAL STUDY (DOMES) PROJECT
The National Oceanic and Atmospheric Administration (NOAA) has, during the past several years, carried out a deep ocean mining environmental study (DOMES). Phase I of this study is well underway. Phase II, the monitoring by the Government of pilot or -prototype ocean mining tests by industry, was scheduled to begin in fiscal year 1977, however, there are not funds for it in the proposed budget.
This committee has before it legislation (S. 713) which'would establish a licensing system to regulate U.S. nationals who engage in recovery of manganese nodules from the deep ocean floor. Licenses issued under this legislation would include environmental protection requirements. Without the information and data which would be generated in DOMES 11, there could be a delay in issuing of such licenses.
The DOMES study has represented a practically unique effort by the Federal Government to analyze the potential environmental consequences of an activity before the activity takes place. The. Congress is deeply concerned about what appears to be a step backward in this process.
We have been informed that NOAA may seek authority to reprogram $400,000 to $500,000 for fiscal year 1977. The probable impacts. on expected phase 11 objectives and results if funds are reprogramed in 1977 and the project is fully funded thereafter are:
(1) The loss of about 90 percent of the scientific data to be
gathered from the Deepsea Ventures' (an ocean mining company) test which will reduce the scientific value (statistical confidence) of the final report and weaken support for its conclusions and
recommendations;
(2) The loss of the opportunity to fully monitor a mining
system operation which may differ significantly from those of other firms and which involves the only mining site known to
date to be within one of the test sites studied in phase 1;
(3) The loss of the first test interim report which could be useful
to DOMES in modifying and/or refining further phase Il monitoring plans and to industry in identifying probable needs for
equipment design and operational techniques; and
(4) The loss of 1 year in the time available for follow-up monitoring of post mining site recovery rates.
The committee recommends full funding ($1.3 million) of DOMES Il in fiscal year 1977 as one of the necessary steps to protect our national interest in maintaining the technological lead in deep ocean mining which we presently enjoy.
V U .1







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PARKS ANDRECREA'TION SUBCONI-MITTEE

NATIONAL PARK SERVICE

The National Park Service has three major areas in which additional
budgetary authority is needed: Personnel, land acquisition, and
development.
Personnel.-The National Park Service is presently over 1,000
permanent personnel below the authorized ceiling. The closure of Crater Lake National Park last summer was a direct result of the lack of adequate personnel. It is, in fact, remarkable that -no deaths have resulted from this situation which applies to all park units. The report
of Senator Hatfield on the Crater Lake closure stated;
Of considerable concern was the lack of adequate staffing at the national park.
The entire episode might have been avoided had the park not been understaffed and a permanent employee with the specific responsibility been present rather than having water quality as an additional responsibility of an electrician or painter. The ultimate responsibility for this understaffIng rests not with the National Park Service, but rather with the Office of Management and Budget and the Congress. The Crater Lake situation is not unique. Testimony received at oversight hearings on Yellowstone National Park indicated that Yellowstone could use about 130 more permanent staff. The impact of the understaffing is that the professionalism and public responsibilities of the Park Service are being sacrificed. They are being sacrificed because the duties must be undertaken by seasonal or temporary personnel or be undertaken by permanent staff with other
full time responsibilities, or not be undertaken at all.
At Crater Lake, for example, there are only 16 permanent employees out of
the authorized level of 24. One of the absent staff is a plumber who would have
ad the full time responsibilities for checking the sewage and water systems and
testing the water. Had Crater Lake been adequately staffed, this episode would not have occurred. A quick check of other areas shows that National Capital Parks for example is almost 200 positions short of its authorized level despite
the approaching tourist influx to Washington for the Bicentennial.
Specific park situations vary. North Cascades is 16 percent below authorized
level. Couple Dam is 24 percent below level as is Mount Ranier. Lava. Beds Park Service is failing to do the job they are entrusted to do. Whether the missing employees are rangers who could prevent an assault or other crime, a technician who could prevent a Crater Lake incident, or an interpretive specialist who could explain a geologic formation or a flower to a child, the public is being shortchanged. We, the Federal Government, are not doing what we promised the American people when they entrusted us with the care and interpretation of our National Park System. The National Park Service is not the culprit, and it is this Senator's intention to make that point. The Office of Management and Budget in an excess of budgetary zeal has presented the Congress with reduced budgets. The Congress, with all appropriate handwringing has 'deplored the state of the economy and acquiesced. The economy is certainly important, but so also is the level of unemployment in this country and the health, safety, and enjoyment of the American people who visit our national parks. We have been as guilty of neglecting the welfare of the American people when we piously accept foolish manpower and funding cuts as when a doctor from the Public Health I x Service overrules his staff recommendations in favor or more experiments. This
problem is all the more serious in this period of high unemployment when the Park Service must turn away dedicated people because the Congress is unwilling
to provide funds.
The committee agrees with Senator Hatfield's analysis and urges
that the personnel levels be increased immediately -to authorized levels. The enormous demands being placed on the Park System, which will be aggravated during this Bicentennial Year, necessitate the im14, mediate hiring of the additional 1,000 personnel. The committee 14 believes that it is unconscionable in a period of high unemployment






46

that the Park Service must turn away qualified. and dedicated people' and that the public's health, safety, and enjoym-ent of the national parks should be jeopardized.
Land acquisition.-The backlog in land acquisition for the -National Park System exceeds $700 million (some ceilings need to be raised) and is constantly growing due to land price escalation, inflation, and the addition of new units. The failure to fully appropriate the land and water conservation fund (which has been carrying a backlog of $2.30-plus million for several years) is evidenced at such units as Sleeping Bear Dunes where costs have risen from $19 million when the unit was authorized in 1970 to $57 million. Similarly, in 1962 Point Reyes would have cost $14 million but will now cost in excess of $57 million also.
The committee recommends an additional $120 million to the Park Service together with 150 new positions to begin to acquire what the Congress promised the American people we would acquire and preserve when the various units were established. It should be noted that no new authorization is needed for this appropriation due to the backlog in the land and water conservation fund from p-rior years.
Dev~elopment.-The development backlog of the National Park Service exceeds $2.7 billion of which $1.6 billion is basic repair and rehabilitation, and about $1.1 billion is construction of new facilities mainly at newer units. The condition of facilities and historic sites at many national parks is appalling. The damage to the C. & 0. Canal from Hurricane Agnes in 1972, for example, has not yet been repaired. It should be noted that expenditures in this area can have a salutary effect on the private sector providing new employment opportunities in the construction and trade industries. For the most part, new budgetary authority will result in greater outlays in fiscal year 197S and succeeding years, but the authority should be granted for- fiscal. year 1977.
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