OPENING STATEMENT OF SENATOR SMITH FOR EPA BUDGET HEARING

Governor Whitman, welcome again to this Committee. I want to thank you again for joining me a couple of weeks ago in Winchester, New Hampshire, to build up support for our Brownfields bill. Today's hearing is on EPA's FY2002 budget. I am pleased that this budget moves in the direction that I believe is necessary if we are to achieve long term success.

This budget is about partnership with the states and achieving results through cooperation and smart management. It reflects many of the priorities and themes that you, Gov. Whitman, instituted at the State level when you served as New Jersey's Governor. The end result was that virtually all measurable indicators showed that you left New Jersey with a much improved environment than how you found it.

I recall in your confirmation hearing praise from both sides of the aisle for you environmental record. Much of that praise had to do with how you prioritized spending and decisions based on the end result of what is best for the environment. This budget increases spending where necessary, and institutes a smart management approach so that the dollars are spent more wisely. While there will be those who will criticize this budget, it is important to note that the Bush budget actually represents a $56 million increase over President Clinton's last EPA budget. It is both environmentally protective and fiscally disciplined. I am pleased that Brownfields cleanup funding is increased to $98 million and those dollars will be leveraged into $300 million worth of cleanup. I hope the House will soon pass our Bill and we can see even more clean up and redevelopment. The Clean Beaches Bill that was authorized by this Committee last year will get important seed money in this budget to get that program started. I want to emphasize that when this Committee does authorize a program, it is our expectation that the program will receive adequate resources.

With regard to Clean Water, as a package, Clean Water Infrastructure funding is substantially higher than that of any previous Administration. While I want to work with you on how it is divided, I am encouraged that this President's budget, unlike those of the past, recognizes the vital importance of Clean Water Infrastructure to the nation. I have a long standing commitment to the SRF because it represents the best approach for helping states to meet their environmental needs. I also want the States to have the flexibility to address their infrastructure needs and priorities.

I am very pleased that President Bush's Environmental Protection budget recognizes the capabilities of the States and begins the necessary shift to increasing partnerships with them. More than 95 percent of inspections and 90 percent of enforcement actions are carried out by the States. Recognizing that fact, this budget includes $25 million in state enforcement grants to ensure that compliance continues.

This brought a very positive response from the States. To quote a letter from the Environmental Council of the States:

"We appreciate the recognition that a vast majority of the enforcement and compliance activity of the Nation occurs within the states, and we welcome the much needed infusion of $25 million in state enforcement grants to assist in that national effort."

The President's budget also supports information gathering and sharing that will better equip the States. This includes an additional $21 million to increase the availability of quality environmental and health information. The EPA will also launch a new $25 million grant program to provide States and Tribes with assistance in developing the National Environmental Information Exchange Network. This Network will facilitate information sharing and help to build partnerships between the States and the Agency. This budget is also about smarter management. Beyond funding programs to protect the environment, this budget's priorities focus on Quality Information, a Credible Deterrent to Pollution with Greater Compliance, and Effective Management. Each of these goals will receive more resources than ever before. This is about smarter management & increased efficiency. Increased efficiency will mean more environmental bang for the buck. This is in contrast to the previous Administration where efficiency and smart management seemed beyond reach. An example is the eight year effort to consolidate EPA personnel into a central location.The end result was that EPA personnel are now located in 17 separate locations all over the metro Washington area. I am hopeful that this Administration's efficiency efforts will yield improved results.I believe that this budget is a step in the right direction.

When I became Chairman of this Committee, I stated that one of my goals was to see an Environmental Protection Agency that promotes partnership with the States; encourages cooperation over confrontation; offers the carrot, yet retains the stick if necessary; and is an Agency that focuses on efforts that will result in a cleaner, healthier environment. Governor Whitman, I believe that you are headed in that direction, and I look forward to our continued work together.