Statement of Senator Joseph I. Lieberman
Senate Committee on Environment and Public Works
Full Committee Hearing on Environmental Protection Agency's FY 2001 Budget
Wednesday, February 23, 2000

Thank you, Mr. Chairman. I'd like to welcome Administrator Browner and her staff. I know that this time of year is extremely busy in the agencies, and budget oversight hearings are sometimes not so eagerly anticipated. EPA's budget has a significant impact on the quality of life in our states and across the nation, and I look forward to hearing Ms. Browner's testimony regarding the President's $9.5 billion budget request for the Environmental Protection Agency (EPA) for Fiscal Year 2001.

Let me begin by saying that in general I am pleased to see an increase in funding for nonpoint control grants, the proposal to allow states to use State Revolving Fund (SRF) money for estuary management, and strong funding for the Climate Change Technology Initiative. The latter proposes promising investments in energy efficient technologies and partnerships with businesses, schools, and state and local governments to reduce greenhouse gas emissions. Programs like Energy Star and PATH have already saved consumers money and improved industrial efficiency, demonstrating that emissions reductions can be achieved in a cost-effective manner. New funding proposals in these areas will continue to spur critical technology innovation.

I have serious concerns about other aspects of the President's budget request, particularly in the area of Clean Water Programs. First, the President's request for the Office of Water reduces funding by 20% from the FY 2000 level of $3.465 billion to $2.782 billion. The Clean Water State Revolving Loan Fund (SRF) is cut by more than 40% from the FY00 enacted level of $1.350 billion to just $800 million.

In Connecticut, the Clean Water SRF has been an important funding mechanism for addressing combined sewer overflows and water infrastructure projects that improve the quality of the Long Island Sound. In fact, Connecticut has one of the highest contributions to the SRF programs, matching federal contributions with 4-5 times the level of state funds, making this an extremely cost-effective federal program. In recent years, Connecticut received about $15 million in SRF funding while contributing $50 million in state bond authority. While the modest increase in nonpoint source grants offsets the cut to the SRF in part, it is not adequate to cover the existing needs, nor does it leverage the existing support of the state SRF contributions.

I am even more disappointed by the apparent status in this budget of the Long Island Sound cleanup and management program in light of the President's requests for significant and, in several cases, increased funding for a number of other regional programs. Several of us in Congress have been appealing for full funding for the LIS program for years. Yet despite constant attempts to increase the budget levels to an amount consistent with the needs of the Sound and the $3 million authorization, this budget includes a mere $500,000 - only half of last year's enacted amount.

I am particularly troubled today because the Long Island Sound Program has enabled Connecticut and New York to make significant progress on improving water quality in ways that directly support the administration's goals in the Clean Water Action Plan. The Department of Environmental Protection and Natural Resources Conservation Service have already conducted a unified watershed assessment for the Sound. In November of 1999, Connecticut and New York proposed a nitrogen total maximum daily load (TMDL), probably the most significant proposal set forth in the nation in terms of technical evaluation and resource commitments. In comments submitted to EPA on the agency's proposed TMDL rule, the State of Connecticut supported the revisions but highlighted the need for flexibility and funding in order for the proposal to be effective. The state specifically estimated the cost for the Long Island Sound TMDL as $20 million dollars - the bulk of which has been borne by the states and localities.

And while the needs for Connecticut and New York to achieve the goals of the Long Island Sound Comprehensive Management Plan for restoring water quality are roughly $1 billion, EPA has not even included $1 million in this year's budget. For comparison, the President has included $19.5 million for the Chesapeake Bay, $4.1 million for the Great Lakes, $4 million for the Gulf of Mexico, and $2.2 million for Lake Champlain.

Administrator Browner, I hope you will address these questions during your testimony. I look forward to working with the EPA in the coming year to enhance our nation's environmental resources.