H.R. 2419, the Energy and Water Development Appropriations Act of 2005

Summary

On June 16, 2005, the Senate Appropriations Committee reported the Energy and Water Development Appropriation Act for Fiscal Year 2006 by a vote of 28 to 0. The bill, as reported by the Senate Appropriations Committee, provides $31.245 billion in total budget authority for Fiscal Year 2006. This amount is $1.498 billion above the Administration's budget request and $1.412 billion above the current funding level for Fiscal Year 2005.

More than half of the funding in the bill is for defense discretionary spending (the Department of Energy's atomic energy defense activities); the remaining funds are for domestic discretionary spending. The bill provides for the following agencies and activities:

• Army Corps of Engineers;
  
  
• Central Utah Project;
  
  
• Bureau of Reclamation;
  
  
• Department of Energy, including fossil energy and conservation programs;
  
  
• Power Marketing Administrations;
  
  
• Federal Energy Regulatory Commission;
  
  
• Appalachian Regional Commission;
  
  
• Defense Nuclear Facilities Safety Board;
  
  
• Delta Regional Authority;
  
  
• Denali Commission;
  
  
• Nuclear Regulatory Commission; and
  
  
• Nuclear Waste Technical Review Board.
  
  

H.R. 2419 provides $5.298 billion for the Army Corps of Engineers, which is $966 above the Administration's budget request and $258 million above the Fiscal Year 2005 enacted level. The Corps receives 65 percent of the new funding in this bill.

H.R. 2419 provides $25.04 billion for the Department of Energy, which is $1.12 billion above the Administration's request and $778 million above the enacted level. This title provides funds for environmental cleanup, nuclear stockpile stewardship, and nonproliferation activities. The bill also provides $1.254 billion for energy efficiency and renewable energy programs, which is $53.405 million above the budget request and $4.943 million above the enacted level. This includes funding for wind, solar, geothermal, and biomass, as well as hydrogen technology and energy efficiency.

Major Provisions

Title I: Army Corps of Engineers

H.R. 2419 provides $5.298 billion for the Army Corps of Engineers, which is $966 million above the Administration's budget request and $258 million above the Fiscal Year 2005 enacted level.

General investigations. $180 million is provided for general investigations, an $85 million increase above the Administration's request and $36.656 million above the current enacted level.

Construction. $2.087 billion is provided for construction projects in 46 states. This amount is $450 million above the Administration's request and $305 million above the enacted level.

Flood control of Mississippi River and tributaries. $433.336 million is provided for flood control projects along the Mississippi River and tributaries, which is $163.336 million above the budget request and $111.432 million above the current level.

Operations and maintenance. $2.1 billion is provided for operations and maintenance of projects, which is $302 million above the budget request and $1.172 million above the current level.

Regulatory program. $150 million is provided for the regulatory program for the Corps of Engineers, which is $10 million below the budget request, but $6.16 million above the enacted level. These funds are for regulation activities affecting U.S. waters, including wetlands. They help protect important aquatic resources and support partnerships with states and local communities through watershed planning efforts.

Formerly Utilized Sites Remedial Action Program. $140 million is provided for Formerly Utilized Sites Remedial Action Program (FUSRAP), which is the same amount as requested but $23.68 million below the enacted level. In 1997, the cleanup of contaminated sites under FUSRAP was transferred to the Army Corps of Engineers from the Department of Energy.

Flood control and coastal emergencies. $43 million is provided for preparedness activities and emergency response for natural and other disasters. This amount is $37 million below the budget request and was funded only through emergency appropriations in Fiscal Year 2005.

General expenses. $165 million is provided for general expenses, which is $3 million above the budget request, but $664,000 below the enacted level.

Title II: Department of the Interior - Bureau of Reclamation

The Bureau of Reclamation manages, develops and protects water reclamation projects in 17 western states. H.R. 2419 provides $1.08 billion for the Bureau of Reclamation, which is $130 million above the Administration's request and $63.5 million above the current funding level.

Central Utah project completion account. H.R. 2419 provides $34.35 million for the Central Utah project, which is the same amount as requested, but $13.275 million below the enacted level. These funds will be used for the management and construction of water projects in Utah.

Water and related resources. $899.569 million is provided for development, management and restoration of water resources, which is $128 million above the Administration's request and $46.964 million above the current funding level. This funding includes $20 million for the Water 2025 initiative.

Central Valley project restoration fund. $52.219 million is provided for fish and wildlife restoration activities in the Central Valley project area of California. This is the same as the amount requested, but $2.409 million below the enacted level. The fund can be used to support the goals of California Bay-Delta Ecosystem Restoration program.

California Bay-Delta Ecosystem Restoration. $37 million is provided for the California Bay-Delta Ecosystem Restoration Project, which is $2 million above the budget request. This program was not funded in Fiscal Year 2005. Included in the project is the CALFED program, which was established in 1995 to develop a comprehensive, long-term solution to restoring the ecosystem and improving water management for the San Francisco Bay and Delta area of California.

Policy and administration. $57.917 million is provided for policy and administrative expenses at the Bureau of Reclamation, which is the same as the amount requested and $229,000 above the current level.

Title III: Department of Energy

The Department of Energy programs funded under H.R. 2419 include defense and non-defense functions, the Power Marketing Administrations, and the Federal Energy Regulatory Commission. Funding for the Department of Energy is $25.04 billion. The bill provides funding for renewable energy programs, fossil fuel programs, waste management program, nuclear stockpile stewardship, and nonproliferation activities. The funding is $1.2 billion above the Administration's request and $778 million above the enacted level.

Energy supply and conservation programs. H.R. 2419 provides $1.945 billion for energy research programs, which is $195.884 million above the Administration's request and $138.394 million above the enacted level. The energy conservation program conducts research and development projects aimed at sustaining economic growth through more efficient energy use for the transportation, residential and commercial buildings, power and industrial sectors.

Energy efficiency and renewable energy programs. Within the funds allocated for energy supply and conservation programs, the Committee recommendation includes substantial investments in renewable energy resources. $1.254 billion is provided for energy efficiency and renewable energy resources, which is $53.405 million above the budget request and $4.943 million above the enacted level. Within this category the following programs are funded:

• Hydrogen technology research is provided $99.094 million;
  
  
• Fuel cell technologies are provided $83.6 million;
  
  
• Biomass and biofuels energy systems are provided $92.164 million;
  
  
• Solar is provided $83.953 million;
  
  
• Wind power is provided $34.249 million;
  
  
• Geothermal is provided $23.3 million;
  
  
• Hydropower is provided $500,000;
  
  
• Vehicle technologies are provided $200 million;
  
  
• Building technologies are provided $67 million;
  
  
• Industrial technologies are provided $56.489 million;
  
  
• Federal Energy Management Program is provided $19.166 million;
  
  
• Weatherization is provided $240.4 million; and
  
  
• State Energy Program grants are provided $41 million.
  
  

Electricity transmission and distribution. $178.803 is provided for electricity transmission and distribution, which is $82.479 million above the budget request and $57.898 above the current level. This amount includes $128.386 million for research and development of new technologies.

Nuclear energy programs. $573 million is provided for nuclear energy programs, which is $60 million above the Administration's request and $63.8 million above the current level. This program provides funding for facilities management and advanced research and development, including $30 million for the nuclear hydrogen initiative and $85 million for the advanced fuel cycle initiative.

Fossil energy research and development. The bill provides $634 million for fossil energy research and development, which is a decrease of $114 million below the budget request, but an increase of $62 million above the current funding level. Within the fossil energy research and development program, the clean coal power initiative is funded at $100 million. Within this account, the following programs are funded:

• Fuel and power systems. $306.55 million is provided for coal and power systems, which is $23.55 million above the budget request and $22.475 million above the current funding level. This includes funding for fuel cells, fuel research and development, and advanced turbines.
  
  
• Natural gas technologies. $27 million is provided for natural gas research, which is $17 million above the budget request, but $17.839 million below the current funding level. This includes funds for gas hydrates, gas storage technology, infrastructure technology, and environmental protection.
  
  
• Oil technology. $32 million is provided for oil technology programs, which is $22 million above the budget request, but $1.921 million below the enacted level. This includes funding for exploration research, clean fuels, and environmental protection.
  
  

Strategic Petroleum Reserve. The bill provides $166 million for management of the Strategic Petroleum Reserve, which is the same as the budget request, but $3.71 million below the enacted level. The Strategic Petroleum Reserve was established in 1975 to provide the United States with an adequate oil reserve to protect against disruptions in supplies.

Energy Information Administration. The bill provides $85.926 million for the Energy Information Administration, which is the same as the Administration's request and $2.107 million above the enacted level. The Energy Information Administration is an independent agency within the Department of Energy that provides information and analysis on energy sector activities.

Non-defense site environmental cleanup. $353.219 million is provided for the non-defense site environmental cleanup program, which is $3.285 million above the Administration's request, but $86.382 million below the current level. The non-defense environmental management program is responsible for managing and addressing the clean-up of sites from nuclear energy and civilian energy research programs.

Uranium enrichment decontamination and decommissioning fund. $561.498 million is provided for the environmental cleanup of the Department's uranium enrichment plants, a decrease of $30 million below the budget request, but an increase of $66.483 million above the current level.

Science. $3.702 billion is provided for various science programs, which is $240 million above the budget request and $97 million above the enacted level. The Office of Science provides funding on physics, nuclear physics, basic energy sciences, biological research, scientific computing, energy laboratories, and fusion energy sciences.

Nuclear waste disposal. The non-defense contribution for nuclear waste disposal is $300 million, the same as the Administration's request, but $43.232 million below the current level. The defense contribution for nuclear waste disposal is $277 million, which is provided for the federal government's contribution to the nuclear waste repository program attributed to atomic energy defense activities. This is $74.447 million below the Administration's request, but $47.848 million above the enacted level. Overall, $577 million is provided for nuclear waste disposal, a decrease of $64 million below the Administration's request, but the same as the current level.

Atomic energy defense activities. The National Nuclear Security Administration, weapons activities, defense nuclear nonproliferation, defense environmental restoration, and defense waste management are funded within atomic energy defense activities. More than half of the bill's funding goes toward these programs. The bill provides $16.732 billion for these activities, which is $332.5 million above the budget request and $28.2 million above the current level.

• Weapons activities. $6.554 billion is provided for weapons activities, which is $75.779 million below the Administration's request, but $222.764 million above the current year level. Weapons activities program provide funding the continued assurance of the safety, reliability, security of the nuclear weapons stockpile, and research and study of "low yield" nuclear weapons.
  
  
• Defense nuclear nonproliferation. $1.729 billion is provided for defense nuclear nonproliferation activities, which is $91.827 million above the Administration's request and $236 million above the enacted level. These programs seek to detect, prevent, and reverse the proliferation of weapons of mass destruction materials, technology, and expertise.
  
  
• Naval reactors. $799.5 million is provided for naval reactors, which is $13.5 million above the budget request, but $1.937 million below the current level. This program provides for the development, testing, and evaluation of naval reactors.
  
  
• Office of the Administrator. $343.869 million is provided to the Office of the Administrator for the National Nuclear Security Administration. This is the same as the budget request, but $9.481 million below the enacted level.
  
  

Environment clean up. These programs include defense environment and waste management and defense facilities closure projects. $6.366 billion is provided for defense environmental clean up, which is $351.4 million above the budget request, but $441.878 million below the enacted level.

Other defense activities. $662 million is provided for security, intelligence, counterintelligence, independent oversight and performance assurance. This is $26 million above the Administration's request, but $25.151 million below the enacted level.

Power Marketing Administrations. The marketing and transmission of electric power produced at federal hydroelectric projects are carried out by DOE's five Power Marketing Administrations (PMAs): Alaska, Bonneville, Southeastern, Southwestern and Western Area. The bill provides $279.215 million for the PMAs, except for Bonneville, which is self-financed. The PMAs receive a $220 million increase over the Administration's request and $70.421 million above the enacted level.

Federal Energy Regulatory Commission. H.R. 2419 provides $220.4 million for the Federal Energy Regulatory Commission (FERC), which is fully offset by FERC's revenues (set at a rate equal to the amount provided for program activities). This is the same as the budget request and $10.4 million above the enacted level.

Title VI: Independent Agencies

Appalachian Regional Commission. The Appalachian Regional Commission, a regional economic development agency, established in 1965, would receive $65.482 million, which is equal to the budget request and the enacted level.

Defense Nuclear Facilities Safety Board. $22.032 million is provided for the Defense Nuclear Facilities Safety Board, which is the same as the budget request and $1.926 million above the enacted level. The Board was established in 1988 to advise the Secretary of Energy on health and safety issues for the defense nuclear facilities.

Delta Regional Authority. $12 million is provided for the Delta Regional Authority, an increase of $6 million above the Administration's request and the current level. The Delta Regional Authority was established in 2000 to assist eight states in the lower Mississippi River Valley with transportation infrastructure needs and economic development opportunities.

Denali Commission. $67 million is provided for the Denali Commission, which is $65 million above the budget request and the same as the enacted level. The Denali Commission is a regional economic development agency established in 1998 to deliver utilities, power, and other infrastructure throughout Alaska.

Nuclear Regulatory Commission. $742.692 million is provided for the Nuclear Regulatory Commission, but offsetting revenues would reduce the net appropriation to $135.733 million. This is $41 million above the Administration's request and the enacted level. The Nuclear Regulatory Commission is responsible for the licensing and regulation of commercial nuclear power plants and the transport and storage of nuclear waste and materials.

Nuclear Waste Technical Review Board. H.R. 2419 provides $3.608 million for the Nuclear Waste Technical Review Board, which is the same as the budget request and $456,000 above the current funding level. The board is required to evaluate the activities of DOE's nuclear waste disposal program and report to Congress on its findings two times a year.

Legislative History

On June 16, 2005, the Senate Appropriations Committee reported H.R. 2419, the Energy and Water Development Appropriation Act for Fiscal Year 2006 by a vote of 28 to 0.

On May 24, 2005, the House of Representatives passed its version of H.R. 2419, the Energy and Water Appropriations Act for Fiscal Year 2006 by a vote of 416 to 13.

Statement of Administration Policy

The Office of Management and Budget (OMB) has not issued a Statement of Administration Policy (SAP) on the Senate version of H.R. 2419. On May 24, 2005, OMB issued a SAP on the House-passed version of H.R. 2419, in which it expressed the following concerns:

• Funding cuts to Nuclear Power 2010;
  
  
• Restoration of oil-and-gas research and development programs;
  
  
• Funding cuts to carbon sequestration technologies;
  
  
• Funding cuts to Water 2025;
  
  
• Funding cuts to NNSA;
  
  
• Unrequested funding for site clean-up;
  
  
• Funding allocations for Corps of Engineers projects; and
  
  
• Restrictions on use of funds in Corps of Engineers for competitive sourcing.
  
  

Possible Amendments

The DPC will distribute information about amendments as it becomes available.