**[NOTE 22. STEWARDSHIP PROPERTY, PLANT, AND EQUIPMENT]{.underline}**

This note provides information on certain resources entrusted to the
Department and certain stewardship responsibilities assumed by the
Department. The physical properties of stewardship property, plant, and
equipment (Stewardship PP&E) resemble those of the General PP&E that is
capitalized traditionally in the financial statements of federal
entities. Due to the nature of these assets, however, valuation would be
difficult and matching costs with specific periods would not be
meaningful. Therefore, federal accounting standards require the
disclosure of the nature and quantity of these assets. NOAA is the only
entity within the Department that has Stewardship PP&E.

**Stewardship Marine Sanctuaries, National Marine Monument, and
Conservation Area:**

NOAA maintains the following Stewardship PP&E, which are similar in
nature to stewardship land:

***National Marine Sanctuaries:*** In 1972, Congress passed the Marine
Protection, Research, and Sanctuaries Act (Act) in response to a growing
awareness of the intrinsic environmental and cultural value of coastal
waters. The Act authorized the Secretary of Commerce to designate
discrete areas as National Marine Sanctuaries. These protected waters
provide a secure habitat for species close to extinction, and also
protect historically significant shipwrecks and prehistoric artifacts.
The sanctuaries are also used for recreational diving and sport fishing,
and support valuable commercial industries such as fishing and kelp
harvesting. As of March 31, 2009, [13]{.mark} National Marine
Sanctuaries, which include near-shore coral reefs and open ocean, have
been designated, covering a total area of [19 thousand square
miles]{.mark}. Each individual sanctuary site (Monterey Bay, the Florida
Keys, the Olympic Coast, and Channel Island are the largest four)
conducts research and monitoring activities to characterize existing
resources and document changes.

***Papahānaumokuākea National Marine Monument:*** The majority of all
coral reef habitats located in U.S. waters surround the Northwestern
Hawaiian Islands (NWHI). The NWHI Coral Reef Ecosystem Reserve is the
nation's largest marine protected area, and was established by Executive
Orders in December 2000 and January 2001, in accordance with the
National Marine Sanctuaries Amendments Act of 2000. On June 15, 2006,
the President created the [world's second largest]{.mark} marine
conservation area off the coast of the northern Hawaiian Islands. This
conservation area, designated the Northwestern Papahãnaumokuãkea Marine
National Monument, encompasses nearly [140,000 square miles]{.mark} of
U.S. waters, including [5,178 square miles]{.mark} of relatively
undisturbed coral reef habitat that is home to more than [7,000
species]{.mark}. The Monument will be managed by NOAA, with the
Department of the Interior, and the State of Hawaii.

[]{.mark}

[Written policy statements or permit guidelines for the National Marine
Sanctuaries and the Papahãnaumokuãkea Marine National Monument have been
developed for the areas of acoustic impacts, artificial reefs, and
climate change. In development are policy positions or management
approaches for alternative energy, aquaculture, cruise ship discharge,
invasive species, marine debris, and underwater cables.]{.mark}

***Aleutian Islands Habitat Conservation Area:*** On July 28, 2006, NOAA
Fisheries Service formally established the Aleutian Islands Habitat
Conservation Area in Alaska, which covers [279,114 square nautical
miles]{.mark} and may harbor [among the highest diversity]{.mark} of
deep-water corals in the world. The conservation area established a
network of fishing closures in the Aleutian Islands and Gulf of Alaska,
and protects habitat for deep water corals and other sensitive features
that are slow to recover once disturbed by fishing gear or other
activities. [Six small areas]{.mark} that include [fragile]{.mark} coral
gardens discovered by NOAA Fisheries Service scientists will be closed
to all bottom-contact fishing gear. This effort is part of a network of
new marine protected areas in Alaskan waters designed to protect
essential fish habitat and prevent any further damage of the area. This
area is supported by amendments 78 and 65 of the Fishery Management
Plan.

Additional information on the above Stewardship PP&E is presented in the
Required Supplementary Information section.

**Heritage Assets*:***

Heritage assets are unique for their historical or natural significance,
for their cultural, educational, or artistic importance, or for their
significant architectural characteristics. The Department generally
expects that these assets will be preserved indefinitely.

In cases where a heritage asset also has a practical and predominant use
for general government operations, the asset is considered a multi-use
heritage asset. The cost of a multi-use heritage asset is capitalized as
General PP&E and is depreciated over the useful

life of the asset.

Historical artifacts are designated heritage assets if they help
illustrate the social, educational, and cultural heritage of NOAA and
its predecessor agencies (U. S. Coast and Geodetic Survey, U.S. Fish
Commission, the Weather Bureau, the Institutes for Environmental
Research, the Environmental Science Services Administration, etc.).
These include, but are not limited to, bells, gyro compasses, brass
citations, flags, pennants, chronometers, ship's seals, clocks,
compasses, shipbuilders' contracts, personal equipment, clothing, medals
and insignia, barometers, rain gauges, and any items which represent the
uniqueness of the mission of NOAA and its predecessor agencies.

NOAA has established policies for heritage assets to ensure the proper
care and handling of these assets under its control or jurisdiction. The
Deputy Under Secretary of NOAA has established the Heritage Assets
Working Committee to administer NOAA's stewardship policies and
procedures. In carrying out these policies and procedures, the NOAA
Heritage Assets Working Committee:

-   Maintains a nationwide inventory of heritage assets, ensuring that
    they are identified and recorded in the Personal Property Heritage
    Asset Accountability System,

-   Establishes nationwide NOAA policies, procedures, and standards for
    the preservation, security, handling, storage, and display of NOAA
    heritage assets,

-   Tracks and updates each loan of NOAA heritage assets, including
    assigning current values and inventory numbers, and reporting the
    current condition of heritage assets,

-   Determines the feasibility of new asset loans, such as meters,
    standard tide gauges, portraits, and books for exhibit loans, and

-   Collects heritage assets and properties of historic, cultural,
    artistic, or educational significance to NOAA.

NOAA maintains the following heritage assets:

***Galveston Laboratory:*** Galveston Laboratory is comprised of
[seven]{.mark} buildings that were originally part of Fort Crockett, an
Army coastal defense facility built shortly after 1900. These buildings
are eligible for placement on the National Register. Due to their
historic significance, exterior architectural features, and predominant
use in government operations, the Galveston Laboratory is considered a
multi-use heritage asset. This facility is undergoing a renovation in
three phases. Phases I and II are complete.

This facility recently completed a three phase renovation. Two incidents
have occurred to the laboratory requiring necessary repair work. The
first incident was a fire in building 303 due to a lightning strike.
[The overall fire repair of building 303 is 50 percent]{.mark} [complete
with an estimated completion of March 2009]{.mark}. The second incident
resulted in damage due to Hurricane Ike. [The overall emergency repair
work for the Galveston campus buildings is 60 percent complete as of
December 2008 and the rest of the repair work is estimated to be
completed by February 2009.]{.mark}

***National Marine Fisheries Service (NMFS) St. George Sealing Plant:***
On St. George Island, in the Pribilof Islands group, Alaska is the only
remaining northern fur seal pelt processing building in the world. In
1986, the building was listed on the National Register of Historic
Properties, within the Seal Islands National Historic Landmark. The
Pribilof Island commercial fur seal harvest was an extremely profitable
business for the U.S. government, and, by the early 1900's, had covered
the purchase price of Alaska. The building is the largest on the island,
and is comprised of four distinct work areas from the seal pelt
processing area. In 1950, the original wood-framed pelt processing plant
was destroyed in a fire and rebuilt in 1951 with concrete walls on
remnants of the original foundation. Harsh weather and a lack of
maintenance funding after the expiration of the Northern Fur Seal
Convention in 1985 resulted in significant deterioration of the building
by the early 1990s.

In November 1999, after numerous site surveys and assessments, the
building's crumbling foundation was stabilized and the building's
exterior was painted. This effort allowed for NOAA's continued, but
limited, use of the building by the NMFS Alaska Region and Alaska
Fisheries Science Center to achieve NOAA's mission on St. George Island.
In addition, the U.S. Fish and Wildlife Service (USFWS) Alaska Maritime
National Wildlife Refuge has used the building as a bunkhouse until 2006
when NOAA's Safety Officer and the USFWS Safety Officer both determined
the bunkhouse portion of the building lacked sufficient means of egress
in the event of fire, and deemed it to be unsafe for habitation. It was
determined by USFWS that the cost of making the necessary modifications
to the space was not fiscally justifiable. NOAA's Preserve America
program funded an interpretive display project in the Seal Plant to
promote public outreach and education for the modest tourism program on
St. George.

***National Marine Fisheries Service (NMFS) Cottage M, St. George:***
The last remnants of the United States commercial harvest of northern
fur seals can be found on St. George

Island, in the Pribilof Islands group, Alaska. In 1986 Cottage M
(locally known as Cottage C), was listed on the National Register of
Historic Places within the Seal Islands National Historic Landmark. The
Pribilof Island commercial fur seal harvest was an extremely profitable
business for the U.S. government and by the early 1900's had covered the
purchase price of Alaska. This building was constructed in the 1930s and
was the residence of the island doctor and hospital through 1955 when
the current clinic/hospital was built. After the construction of a
health clinic on St. George Cottage M provided housing for government
scientists and managers. In recent years U.S. Fish and Wildlife Service
(USFWS) Alaska Maritime National Wildlife Refuge staff also use the
building. The NMFS Cottage M is considered a multi-use heritage asset
because of the critical housing for NOAA's research and management staff
along with USFWS staff.

***National Marine Fisheries Service (NMFS) St. Paul Old
Clinic/Hospital:*** On St. Paul Island, in the Pribilof Islands group,
Alaska, fewer historic structures remain than on St. George Island. In
1986 the clinic/hospital, was listed on the National Register of
Historic Places within the Seal Islands National Historic Landmark. The
old clinic/hospital is the combination of three historic buildings
(physician's house, 1929; dispensary, 1929; hospital, 1934) connected in
1974 with an addition. The building was used as a clinic/hospital under
a Memorandum of Agreement between NMFS and the Department of Health,
Education and Welfare and later the Indian Health Service/Bureau of
Indian Affairs (IHS/BIA) through 2006. A new health center was
constructed on St. Paul in 2006 and a closeout procedure and custody
transfer between NMFS and IHS/BIA is still being negotiated. NMFS has
not used the building to meet its mission for at least the [past 20
years.]{.mark}

***National Marine Fisheries Service (NMFS) Aquarium:*** In Woods Hole,
Massachusetts, this aquarium was established in 1875 by Spencer Baird,
the originator of NMFS. In addition to being part of the first
laboratory of today's NMFS, this aquarium is the [oldest]{.mark} marine
research display aquarium in the world. It is used to educate the
public, raise public awareness of NMFS activities, and accommodate
in-house research for the Northeast Fisheries Science Center, part of
NOAA's mission. The aquarium houses [16]{.mark} permanent exhibition
tanks and approximately [12]{.mark} free standing aquaria and touch
tanks holding more than [140 species of fish]{.mark} and invertebrates.
The tanks range in size from [75 to 2,800 gallons. The aquarium's
outdoor habitat for resident seals was completely]{.mark} [replaced in
2008 and was re-opened to the public in July 2008. The general condition
of]{.mark} [the aquarium is good]{.mark}. The NMFS Aquarium is
considered a multi-use heritage asset because it is also used for NOAA's
scientific research, which is part of its mission.

***Office of Atmospheric Research (OAR) Great Lakes Environmental
Research Laboratory (GLERL), Lake Michigan Field Station (LMFS):***
GLERL's Lake Michigan Field Station occupies a historically significant
site at the entrance of the Muskegon channel from Lake Michigan. The
main building, constructed in 1904 by the U.S. Life Saving Service, is
eligible for National Register designation and has been recognized by
state and local historical societies for its maritime significance. With
the creation of the U.S. Coast Guard in 1915, the facility was
transferred and served as a base for search and rescue operations for 75
years. In 1990 the facility was transferred to the Department of
Commerce for GLERL's ship operations and field laboratory.

In 2004 the station completed a renovation project that restored the
exterior to its original architecture and color scheme. This style,
known as the "Racine Type", is considered rare and the GLERL facility is
the only unmodified structure designed by architect Victor Mendelheff
who was under contract by the U.S government in the late 1800's. The
1903 lighthouse located at the facility is registered as a National
Historic Site and is maintained by the Coast Guard. Public access to
that structure is through the GLERL property and is complimented by the
unique period architecture of the main field station building. Two other
buildings on the site serve as laboratories, staging of scientific gear
and ship support. Due to their historic significance, exterior
architectural features, and predominant use in government operations,
the Lake Michigan Field Station is considered a multi-use heritage
asset.

***Collection-type Heritage Assets:*** The NOAA's collection-type
heritage assets are comprised primarily of books, publications,
manuscripts, records, nautical chart plates, and artifacts. Many of
these heritage assets are maintained by the NOAA Central Library
(Library). The Library has an extensive collection of historical Coast
and Geodetic Survey materials (from 1807) and Weather Bureau materials
(from the 1830s), including foreign and historical meteorological data,
information on instruments, and metadata. As evidenced by a search of
international catalogs, [35 to 50 percent]{.mark} of the Library's
collection is unique. Historically, [40 percent of the items catalogued
are not found]{.mark} [anywhere else.]{.mark} Many older books cannot be
replaced. The works include 17^th^ century works of Francis Bacon and
Robert Boyle, 18th century works of Daniel Bernouilli, Daniel Defoe, and
Pierre Bougher, and 19th and 20th century works of Benjamin Franklin and
George Washington Carver. Collections of the Library include a) the
Charles Fitshugh Talman Special Collections Room -- [approximately 3
thousand titles and over 5 thousand items]{.mark}; b) the Coast and
Geodetic Survey Collection -- [approximately 23 thousand items; and c)
the Weather Bureau Collections -- approximately 62.5 thousand
items.]{.mark}

[A re-count of the library inventory was completed during FY 2008 and
provides a new base number of the collection containing heritage assets.
The Library's Regular Collection consists of over 144,000 journal items
(pre-1970 and current) and approximately 140,700 books, plus its
historical Weather Bureau (M collections), Coast and Geodetic Survey
collection, and Rare Book Collection.  Many Regular Collection items
contain publications from pre-NOAA organizations are heritage assets and
are integrated into the collection.]{.mark}

The NOAA's collection-type heritage assets also include items in the
Thunder Bay Sanctuary Research Collection (Collection). In 2004, the
Thunder Bay National Marine Sanctuary (jointly managed by NOAA and the
State of Michigan to protect and interpret a nationally significant
collection of shipwrecks and other maritime heritage resources)
established an agreement with the Alpena County George N. Fletcher
Public Library to jointly manage this Collection. Amassed over a period
of more than 40 years by historian C. Patrick Labadie, the Collection
includes information about such diverse subjects as Great Lakes ports
and waterways, docks, cargoes, ships, shipbuilders, owners and fleets,
machinery and rigging, notable maritime personalities, and shipwrecks.
Special features of the Collection are extensive collections of a) data
cards listing most of the ships on the Great Lakes before year 1900, a
roster of some 15,000 vessels complete with descriptive data and
highlights of the ships' careers and their ultimate losses; and b) ship
photograph negatives of 19th and 20th century Great Lakes ships.
Heritage assets also include copies of vessel ownership documents,
contemporary ship photographs, books, and other items documenting the
Great Lakes history.

**[REQUIRED SUPPLEMENTARY INFORMATION]{.underline}**

***Stewardship Marine Sanctuaries, Marine National Monument, and
Conservation Area:***

NOAA maintains the following sanctuaries, Marine National Monument, and
conservation area, which are similar in nature to stewardship land and
which are more fully described in Note 22, Stewardship Property, Plant
and Equipment, of the Notes to the Financial Statements.

**National Marine Sanctuaries:** These protected waters provide a secure
habitat for species close to extinction, and also protect
historically-significant shipwrecks and prehistoric artifacts. Each of
the [13]{.mark} individual sanctuary sites, which include near-shore
coral reefs and open ocean, conducts research and monitoring activities
to characterize existing resources and document changes.

**Papahãnaumokuãkea Marine National Monument:** The majority of all
coral reef habitats located in U.S. waters surround the Northwestern
Hawaiian Islands (NWHI). The Papahãnaumokuãkea Marine National Monument,
located off the coast of NWHI, [encompasses nearly 140,000 square miles
of U.S. waters, including 5,178 square miles of]{.mark} relatively
undisturbed coral reef habitat that is home to more than [7,000
species.]{.mark} The Monument will be managed by the NOAA National
Marine Sanctuary, with the Department of the Interior, and the State of
Hawaii.

Written policy statements or permit guidelines for the National Marine
Sanctuaries and the Papahãnaumokuãkea Marine National Monument have been
developed for the areas of acoustic impacts, artificial reefs, and
climate change. In development are policy positions or management
approaches for alternative energy, aquaculture, cruise ship discharge,
invasive species, marine debris, and underwater cables.

**Aleutian Islands Habitat Conservation Area:** This conservation area
in Alaska, which covers [279,114 square nautical miles,]{.mark} may
harbor [among the highest diversity]{.mark} of deep-water corals in the
world, and protects habitat for deep water corals and other sensitive
features that are slow to recover once disturbed by fishing gear or
other activities.

***Collection-type Heritage Assets***

The NOAA's collection-type heritage assets are comprised primarily of
books, publications, manuscripts, records, nautical chart plates, and
artifacts. Many of these heritage assets are maintained by the NOAA
Central Library (Library). [A re-count of the library inventory was
completed during FY 2008 and provides a new base number of the
collection containing heritage assets. The Library's Regular Collection
consists of over 144,000 journal items (pre-1970 and current) and
approximately 140,700 books, plus its historical Weather Bureau (M
collections), Coast and Geodetic Survey collection, and Rare Book
Collection.  Many Regular Collection items contain publications from
pre-NOAA organizations are heritage assets and are integrated into the
collection.]{.mark}

The NOAA's collection-type heritage assets also include items in the
Thunder Bay Sanctuary Research Collection, comprised primarily of a)
data cards listing most of the ships on the Great Lakes before year
1900, a roster of some 15,000 vessels complete with descriptive data and
highlights of the ships' careers and their ultimate losses; and b) ship
photograph negatives of 19th and 20th century Great Lakes ships.

Support for heritage assets are maintained by heritage assets custodians
at their respective locations and are not catalogued at the NOAA
library.

The table below summarizes NOAA's collection-type heritage assets
balance as of June 30, 2008. NOAA uses the Condition Assessment Survey
(CAS) method to describe the condition of its assets. The CAS method is
based on a five-point scale with 1 representing excellent condition; 2
-- good condition; 3 -- fair condition; 4 -- poor condition; and 5 --
very poor condition. Assets with the condition assessment level between
1 through 3 are defined as being suitable for public display. The books,
publications, and manuscripts, which make up the majority of NOAA's
collection-type heritage assets, are in 4 -- poor condition, and 5 --
very poor condition. The heritage assets of the Thunder Bay Sanctuary
Research Collection are in 2 -- good condition.

+------------+-----------+---------+---------+----------+------------+
| ##### C    |           |         |         |          |            |
| ollection- |           |         |         |          |            |
| type Herit |           |         |         |          |            |
| age Assets |           |         |         |          |            |
+------------+-----------+---------+---------+----------+------------+
| **Entity** | **De      | **Q     | **FY    | **FY     | **Quantity |
|            | scription | uantity | 2009    | 2009     | of**       |
|            | of        | of**    | Addi    | Withd    |            |
|            | Assets**  |         | tions** | rawals** | **Items    |
|            |           | **Items |         |          | Held**     |
|            |           | Held**  |         |          |            |
|            |           |         |         |          | *          |
|            |           | **9/    |         |          | *3/31/09** |
|            |           | 30/08** |         |          |            |
+------------+-----------+---------+---------+----------+------------+
| NOAA       | Publ      | 602,498 | **[?]{. | **[?]{   | **[?       |
| Central    | ications, |         | mark}** | .mark}** | ]{.mark}** |
| Library    | books,    |         |         |          |            |
|            | man       |         |         |          |            |
|            | uscripts, |         |         |          |            |
|            | pho       |         |         |          |            |
|            | tographs, |         |         |          |            |
|            | and maps  |         |         |          |            |
+------------+-----------+---------+---------+----------+------------+
| National   | Data      | 106,254 | **[?]{. | **[?]{   | **[?       |
| Ocean      | cards,    |         | mark}** | .mark}** | ]{.mark}** |
| Service -- | p         |         |         |          |            |
| Thunder    | hotograph |         |         |          |            |
| Bay        | n         |         |         |          |            |
| Sanctuary  | egatives, |         |         |          |            |
| Research   | document  |         |         |          |            |
| Collection | copies,   |         |         |          |            |
|            | pho       |         |         |          |            |
|            | tographs, |         |         |          |            |
|            | books,    |         |         |          |            |
|            | and other |         |         |          |            |
|            | items     |         |         |          |            |
+------------+-----------+---------+---------+----------+------------+
| []{.mark}  | A         | 3,824   | **[?]{. | **[?]{   | **[?       |
|            | rtifacts, |         | mark}** | .mark}** | ]{.mark}** |
| Others     | artwork,  |         |         |          |            |
|            | books,    |         |         |          |            |
|            | films,    |         |         |          |            |
|            | ins       |         |         |          |            |
|            | truments, |         |         |          |            |
|            | maps, and |         |         |          |            |
|            | records   |         |         |          |            |
+------------+-----------+---------+---------+----------+------------+
| **Total**  | ** **     | **71    | **[?]{. | **[?]{   | **[?       |
|            |           | 2,576** | mark}** | .mark}** | ]{.mark}** |
+------------+-----------+---------+---------+----------+------------+
| []{.mark}  |           |         |         |          |            |
+------------+-----------+---------+---------+----------+------------+
|            |           |         |         |          |            |
+------------+-----------+---------+---------+----------+------------+

**[REQUIRED SUPPLEMENTARY STEWARDSHIP INFORMATION]{.underline}**

***Stewardship Investments***

Stewardship investments are substantial investments made by the federal
government for the benefit of the nation, but are not physical assets
owned by the federal government. Though treated as expenses when
incurred to determine the Department's Net Cost of Operations, these
items merit special treatment so that users of federal financial reports
know the extent of investments that are made for the long-term benefit
of the nation.

***Investments in Non-federal Physical Property:***

Non-federal physical property investments are expenses included in the
Department's Net Cost of Operations for the purchase, construction, or
major renovation of physical property owned by state and local
governments. Based on a review of the Department's programs, NOAA and
EDA have significant investments in non-federal physical property.

**National Estuarine Research Reserves (NERR):** The NERR system
consists of [27]{.mark} estuarine reserves protected by federal, state,
and local partnerships that work to preserve and protect the nation's
estuaries. The NERR system helps to fulfill NOAA's stewardship mission
to sustain healthy coasts by improving the nation's understanding and
stewardship of estuaries. Estuarine reserves are the areas where
freshwater from rivers meet the ocean. These areas are known as bays,
swamps, sloughs, and sounds. These important coastal habitats are used
as spawning grounds and nurseries for the nation's commercial fish and
shellfish. Estuaries filter much of the polluted runoff from rivers and
streams that would otherwise contaminate oceans. The reserves were
created with the passage of the Coastal Zone Management Act of 1972,
and, as of March 31, 2009, encompassed [approximately 1.3 million
acres]{.mark} of estuarine waters, wetlands, and uplands. The [newest
reserve, Mission-Aransas, Texas, was designated on May 3, 2006.]{.mark}
The NERR\'s are state-operated and managed in cooperation with NOAA. The
NOAA's investments in non-federal physical property are for the
acquisition of lands and development or construction of facilities,
auxiliary structures, and public access routes for any NERR site.

**Coastal and Estuarine Land Conservation Program:** This program was
established under the Commerce, Justice, and State Appropriations Act of
2002, "for the purpose of protecting important coastal and estuarine
areas that have significant conservation, recreation, ecological,
historical, or aesthetic values, or that are threatened by conversion
from their natural or recreational state to other uses." The investments
in non-federal physical property include matching grants awarded to
state and local governments for land acquisition in coastal and
estuarine areas. [Since FY 2002, matching grants have been directed to
140 such projects.]{.mark}

**Coastal Zone Management Fund:** The Coastal Zone Management Program is
authorized by the Coastal Zone Management Act of 1972, and administered
at the federal level by NOAA's Office of Ocean and Coastal Resource
Management. The investments in non-federal physical property include
incidental expenses of land acquisition, and low-cost construction on
behalf of various state and local governments, for the purpose of
preservation or restoration of coastal resources and habitats. The
NOAA's financing supports various coastal states in their redevelopment
of deteriorating and urbanized waterfronts and ports, as well as
providing for public access to beaches and coastal areas. The state and
local governments receive funding for these investments through NOAA
grant expenditures, and these grant expenditures also include funding
for purposes other than the investments in non-federal physical
property. There is currently not in place a mechanism for the state and
local governments to determine and report to NOAA the amount of monies
they expend for the investments in non-federal physical property. The
Department, accordingly, cannot report the amount of investments in
non-federal physical property for the Coastal Zone Management Fund.

The NOAA's investments in non-federal physical property for FY 2005
through FY 2009 were as follows:

***(In Millions)***

+----------------------------+-----+----+------+------+------+------+
| **Program**                | *   | ** | **   | **   | **FY | *    |
|                            | *FY | FY | FY** | FY** | 20   | *Tot |
|                            | 200 | 20 |      |      | 09** | al** |
|                            | 5** | 06 | **20 | **20 |      |      |
|                            |     | ** | 07** | 08** |      |      |
+----------------------------+-----+----+------+------+------+------+
| National Estuarine         | \$  | \$ | \$   | \$   | **[\ | **[\ |
| Research Reserves          | 1   | 6  | 11.6 | 11.8 | $?]{ | $?]{ |
|                            | 5.4 | .8 |      |      | .mar | .mar |
|                            |     |    |      |      | k}** | k}** |
+----------------------------+-----+----+------+------+------+------+
| Coastal and Estuarine Land | 1   | 18 | 34.7 | 28.1 | **   | **[\ |
| Conservation Program       | 5.5 | .5 |      |      | [?]{ | $?]{ |
|                            |     |    |      |      | .mar | .mar |
|                            |     |    |      |      | k}** | k}** |
+----------------------------+-----+----+------+------+------+------+
| **Total**                  | *   | ** | **   | **   | **[\ | **[\ |
|                            | *\$ | \$ | \$46 | \$39 | $?]{ | $?]{ |
|                            | 30. | 25 | .3** | .9** | .mar | .mar |
|                            | 9** | .3 |      |      | k}** | k}** |
|                            |     | ** |      |      |      |      |
+----------------------------+-----+----+------+------+------+------+

***Investments in Human Capital:***

Human capital investments are expenses, included in the Department's Net
Cost of Operations, for education and training programs that are
intended to increase or maintain national economic productive capacity
and produce outputs and outcomes that provide evidence of the constant
or increasing national productive capacity. These investments exclude
education and training expenses for federal civilian and military
personnel. Based on a review of the Department's programs, the most
significant dollar investments in human capital are by NOAA.

**National Sea Grant College Program:** Sea Grant is a nationwide
network, administered through NOAA, of [32]{.mark} university-based
programs that work with coastal communities. With the adoption in 1966
of the National Sea Grant College Act, Congress established an
academic/industry/government partnership that would enhance the nation's
education, economy, and environment into the 21st century. The program
supports activities designed to increase public awareness of coastal,
ocean, and Great Lakes issues, to provide information to improve
management decisions in coastal, ocean, and Great Lakes policy, and to
train graduate students in marine and Great Lakes science. The Knauss
Fellowship Program offers qualified masters and doctoral students the
opportunity to spend a year working on marine and Great Lakes policy
issues with the Executive and Legislative branches of the Federal
Government. There is also a Graduate Fellowship Program for Ph.D.
candidates in the specialized areas of population dynamics and marine
resource economics. Participants in this program can receive up to
[three years of funding.]{.mark}

**National Estuarine Research Reserve Program:** This program supports
activities designed to increase public awareness of estuary issues,
provide information to improve management decisions in estuarine areas,
and train graduate students in estuarine science. The National Estuarine
Research Reserve System's Graduate Research Fellowship (GRF) Program
offers qualified masters and doctoral students the opportunity to
address scientific questions of local, regional, and national
significance. The result is high-quality research focused on improving
coastal management issues. All GRF projects must be conducted in a
National Estuarine Research Reserve and enhance the scientific
understanding of the reserve's ecosystem. [As of March 31, 2009, 51
Graduate Research Fellowships have been awarded.]{.mark}

**Educational Partnership Program:** The NOAA **Educational Partnership
Program** **(EPP) with Minority Serving Institutions (MSI)** provides
financial assistance through competitive processes to minority serving
institutions that support research and training of students in
NOAA-related sciences. The program's goal is to increase the number of
educated, trained and graduated students from underrepresented
communities in science and technology directly related to NOAA\'s
mission.  EPP/MSI also seeks to increase collaborative research efforts
between NOAA scientists and researchers at minority serving academic
institutions. Financial assistance is provided through four competitive
program components: the Cooperative Science Centers, the Environmental
Entrepreneurship Program, the Graduate Sciences Program, and the
Undergraduate Scholars Program.

NOAA provides funding to eligible MSIs on a competitive basis to
educate, train and graduate students in NOAA sciences, particularly
atmospheric, oceanic, environmental, living marine resources, remote
sensing and scientific environmental technology. The NOAA EPP
Cooperative Science Center goals are to:

-   Educate, train and graduate students, particularly from
    underrepresented communities, in NOAA mission sciences;

-   Develop expertise in a NOAA scientific area;

    -   Strengthen and build capacity in a NOAA scientific and
        management area

    -   Build research experience in a NOAA scientific and management
        area

-   Increase graduation rates of students from underrepresented
    communities in NOAA mission sciences;

-   Impact NOAA workforce statistics by increasing representation from
    underrepresented communities in NOAA mission sciences; and,

-   Leverage NOAA funds to build the education and research capacity at
    the MSI.

The EPP/MSI Environmental Entrepreneurship Program (EEP) provides
funding to eligible minority serving institutions on a competitive basis
to engage students to pursue advanced academic study and
entrepreneurship opportunities in the NOAA-related sciences.  NOAA's EEP
supports student training and experiential learning opportunities for
the purpose of stimulating job-creation, business development, and
revitalizing local communities. EEP's objective is to increase the
number of students at MSIs proficient in environmental business
enterprises.

The Undergraduate Scholarship Program (USP) is designed to increase the
number of students who undertake course work and graduate with degrees
in the targeted areas integral to NOAA's mission. Appointments are for
[two years]{.mark}, and are made to students who have recently declared
or are about to declare a major in atmospheric, oceanic, or
environmental science. The students participate in research, training,
and development activities at NOAA offices and facilities during two
summer internships. [10 students started the program in FY 2009.]{.mark}

The Graduate Sciences Program (GSP) is aimed primarily at increasing
opportunities for students in NOAA-related fields to pursue research and
educational training in atmospheric, environmental, remote sensing and
oceanic sciences at minority serving institutions (MSI) when possible.
The GSP offers between two years (master\'s candidates) to four years
(doctoral students) of NOAA-related research and training
opportunities.  The GSP provides college graduates entry-level
employment and hands-on research and work experience at NOAA. [Three
students were selected to participate in the GSP program in FY 2008. The
program plans to add five students in FY 2009.]{.mark}

**Ernest F. Hollings Undergraduate Scholarship Program:** This program
was established in 2005 to 1) increase undergraduate training in oceanic
and atmospheric science, research, technology, and education, and foster
multidisciplinary training opportunities; 2) increase public
understanding and support for stewardship of the ocean and atmosphere
and improve environmental literacy; 3) recruit and prepare students for
public service careers with NOAA and other agencies at the federal,
state, and local levels of government; and 4) recruit and prepare
students for careers as teachers and educators in oceanic and
atmospheric science and to improve scientific and environmental
education in the U.S. [Approximately 100 students will start the program
in FY 2009.]{.mark}

**Southeast Fisheries Science Center's (SEFSC) Recruiting Training
Research (RTR) Program:** This is a joint program between NMFS and
Virginia Tech to: (1) recruit top undergraduates into the field of
fisheries population dynamics and careers with NMFS; (2) train graduate
students; and (3) conduct population dynamics and stock assessment
research in support of the NMFS mission. The program also offers
graduate courses and workshops in computer programming, simulation
modeling, and fish population dynamics. In 2008, 15 undergraduate
students from across the country participated in a week-long
undergraduate workshop, four students participated in a six-week summer
program, and three M.S. students were supported by the program at
Virginia Tech. In 2009, the program is expected to operate at a similar
scale.

The following table summarizes NOAA's investments in human capital for
FY 2005 through FY 2009:

(In Millions)

+-----------------------------+------+------+-----+------+----+------+
| **Program**                 | **   | **   | **F | **   | ** | *    |
|                             | FY** | FY** | Y** | FY** | FY | *Tot |
|                             |      |      |     |      | ** | al** |
|                             | **20 | **20 | **  | **20 |    |      |
|                             | 05** | 06** | 200 | 08** | ** |      |
|                             |      |      | 7** |      | 20 |      |
|                             |      |      |     |      | 09 |      |
|                             |      |      |     |      | ** |      |
+-----------------------------+------+------+-----+------+----+------+
| National Sea Grant College  | \    | \    | \$  | \    | ** | **[\ |
| Program                     | $0.7 | $0.7 | 0.5 | $0.5 | [\ | $?]{ |
|                             |      |      |     |      | $? | .mar |
|                             |      |      |     |      | ]{ | k}** |
|                             |      |      |     |      | .m |      |
|                             |      |      |     |      | ar |      |
|                             |      |      |     |      | k} |      |
|                             |      |      |     |      | ** |      |
+-----------------------------+------+------+-----+------+----+------+
| National Estuarine Research | 0.9  | 0.9  | 0.8 | 0.8  | ** | **[\ |
| Reserve Program             |      |      | []{ |      | [? | $?]{ |
|                             |      |      | .ma |      | ]{ | .mar |
|                             |      |      | rk} |      | .m | k}** |
|                             |      |      |     |      | ar |      |
|                             |      |      |     |      | k} |      |
|                             |      |      |     |      | ** |      |
+-----------------------------+------+------+-----+------+----+------+
| Educational Partnership     | 7.0  | 13.9 | 1   | 12.8 | ** | **[\ |
| Program                     |      |      | 4.2 |      | [? | $?]{ |
|                             |      |      |     |      | ]{ | .mar |
|                             |      |      |     |      | .m | k}** |
|                             |      |      |     |      | ar |      |
|                             |      |      |     |      | k} |      |
|                             |      |      |     |      | ** |      |
+-----------------------------+------+------+-----+------+----+------+
| Ernest F. Hollings          | 0.3  | 3.8  | 4.1 | 3.6  | ** | **[\ |
| Undergraduate Scholarship   |      |      |     |      | [? | $?]{ |
| Program                     |      |      |     |      | ]{ | .mar |
|                             |      |      |     |      | .m | k}** |
|                             |      |      |     |      | ar |      |
|                             |      |      |     |      | k} |      |
|                             |      |      |     |      | ** |      |
+-----------------------------+------+------+-----+------+----+------+
| Southeast Fisheries Science |      |      |     |      | ** | **[\ |
| Center's (SEFSC) Recruiting |      |      |     |      | [? | $?]{ |
| Training Research (RTR)     |      |      |     |      | ]{ | .mar |
| Program                     |      |      |     |      | .m | k}** |
|                             |      |      |     |      | ar |      |
|                             |      |      |     |      | k} |      |
|                             |      |      |     |      | ** |      |
+-----------------------------+------+------+-----+------+----+------+
| **Total**                   | *    | **\$ | *   | **\$ | ** | **[\ |
|                             | *\$8 | 19   | *\$ | 17   | [\ | $?]{ |
|                             | .9** | .3** | 19. | .7** | $? | .mar |
|                             |      |      | 6** |      | ]{ | k}** |
|                             |      |      |     |      | .m |      |
|                             |      |      |     |      | ar |      |
|                             |      |      |     |      | k} |      |
|                             |      |      |     |      | ** |      |
+-----------------------------+------+------+-----+------+----+------+
| N/A = Not Applicable        |      |      |     |      |    |      |
+-----------------------------+------+------+-----+------+----+------+

The following table further summarizes NOAA's human capital investments
for FY 2005 to FY 2009 by performance goal:

***(In Millions)***

+-------------------------------------------+---+----+----+----+----+
| **Performance Goal**                      | * | ** | ** | ** | ** |
|                                           | * | FY | FY | FY | FY |
|                                           | F | ** | ** | ** | 20 |
|                                           | Y |    |    |    | 09 |
|                                           | 2 | ** | ** | ** | ** |
|                                           | 0 | 20 | 20 | 20 |    |
|                                           | 0 | 06 | 07 | 08 |    |
|                                           | 5 | ** | ** | ** |    |
|                                           | * |    |    |    |    |
|                                           | * |    |    |    |    |
+-------------------------------------------+---+----+----+----+----+
| Protect, Restore, and Manage the Use of   | \ | \$ | \$ | ** | ** |
| Coastal and Ocean Resources Through an    | $ | 19 | 19 | [\ | [\ |
| Ecosystem Approach to Management          | 8 | .3 | .6 | $? | $? |
|                                           | . |    |    | ]{ | ]{ |
|                                           | 9 |    |    | .m | .m |
|                                           |   |    |    | ar | ar |
|                                           |   |    |    | k} | k} |
|                                           |   |    |    | ** | ** |
+-------------------------------------------+---+----+----+----+----+

***Investments in Research and Development (R&D):***

Investments in R&D are expenses that are included in the Department's
Net Cost of Operations. The investments are divided into three
categories: 1) basic research, the systematic study to gain knowledge or
understanding of the fundamental aspects of phenomena and of observable
facts without specific applications toward processes or products in
mind; 2) applied research, the systematic study to gain knowledge or
understanding necessary for determining the means by which a recognized
and specific need may be met; and 3) development, the systematic use of
the knowledge and understanding gained from research for the production
of useful materials, devices, systems, or methods, including the design
and development of prototypes and processes. The investments are made
with the expectation of maintaining or increasing national economic
productive capacity, or yielding other future economic and societal
benefits. Based on a review of the Department's programs, the only
significant investments in R&D are by NIST and NOAA.

NOAA conducts a substantial program of environmental R&D in support of
its mission, much of which is performed to improve the U.S.'s
understanding of and ability to predict environmental phenomena. The
scope of research includes:

-   Improving predictions and warnings associated with the weather, on
    time scales ranging from minutes to weeks,

-   Improving predictions of climate, on time scales ranging from months
    to centuries, and

-   Improving understanding of natural relationships to better predict
    and manage renewable marine resources and coastal and ocean
    ecosystems.

NOAA also conducts research that is intended to provide a solid
scientific basis for environmental policy-making in government. Examples
of this research include determining the stratospheric ozone-depleting
potential of proposed substitutes for chlorofluorocarbons (CFCs), and
identifying the causes of the episodic high rural ozone levels that
significantly damage crops and forests.

NOAA conducts most R&D in-house; however, contractors to NOAA undertake
most systems R&D. External R&D work supported by NOAA includes that
undertaken through Federal-academic partnerships such as the National
Sea Grant College Program, the Cooperative Institutes of the
Environmental Research Laboratories, the Climate and Global Change
Program, and the Coastal Ocean Program.

Here is a brief description of the major R&D programs of NOAA:

**Environmental and Climate:** The Office of Oceanic and Atmospheric
Research is NOAA's primary research and development office. This office
conducts research in three major areas: climate research, weather and
air quality research, and ocean, coastal, and Great Lakes research. The
NOAA's research laboratories, Climate Program Office, and research
partners conduct a wide range of research into complex climate systems,
including the exploration and investigation of ocean habitats and
resources. NOAA's research organizations conduct applied research on the
upper and lower atmosphere as well as the space environment.

**Fisheries:** The NOAA's NMFS is responsible for the management and
stewardship of living marine resources and their habitat within the
Nation's Exclusive Economic Zone. The NMFS manages these resources
through science-based conservation and management, and the protection
and restoration of healthy ecosystems to ensure their continuation as
functioning components of ecosystems, while also affording economic
opportunities and enhancing the quality of life for the American public.
Fishery stocks and protected species are surveyed, catch data are
collected, and research is conducted to better understand the variables
affecting the abundance and variety of marine fishes and protected
species. Protection of endangered species, restoration of coastal and
estuarine fishery habitats, and enforcement of fishery regulations are
primary bureau activities. The research and management of living marine
resources is conducted in partnership with states, universities, other
countries, and international organizations.

**Marine Operations and Maintenance and Aircraft Services:** These
expenditures support NOAA's programs requiring operating days and flight
hours to collect data at sea and in the air. The NOAA's Marine and
Aviation Operations manage a wide variety of specialized aircraft and
ships to complete NOAA's environmental and scientific missions. The
aircraft collect the environmental and geographic data essential to NOAA
hurricane and other weather and atmospheric research, conduct aerial
surveys for hydrologic research to help predict flooding potential from
snowmelt, and provide support to NOAA's fishery research and marine
mammal assessment programs. The NOAA's ship fleet provides oceanographic
and atmospheric research and fisheries research vessels to support
NOAA's strategic plan elements and mission.

**Weather Service:** The National Weather Service conducts applied
research and development, building upon research conducted by NOAA
laboratories and the academic community. Applied meteorological and
hydrological research is integral to providing more timely and accurate
weather, water, and climate services to the public.

**Other Programs:** As a national lead for coastal stewardship, National
Ocean Service promotes a wide range of research activities to create the
strong science foundation required to advance the sustainable use of our
precious coastal systems. Understanding of the coastal environment is
enhanced through coastal ocean activities that support science and
resource management programs. The National Environmental Satellite Data
and Information Service, through its Office of Research and
Applications, conducts atmospheric, climatological, and oceanic research
into the use of satellite data for monitoring environmental
characteristics and their change. It also provides guidance for the
development and evolution of spacecraft and sensors to meet future
needs.

NOAA's R&D investments by program for FY 2005 through FY 2009 were as
follows:

(In Millions)

+----------------------+------+------+------+-------+-------+-------+
| **Program**          | **FY | **   | **   | *     | **FY  | **To  |
|                      | 20   | FY** | FY** | *FY** | 2     | tal** |
|                      | 05** |      |      |       | 009** |       |
|                      |      | **20 | **20 | **2   |       |       |
|                      |      | 06** | 07** | 008** |       |       |
+----------------------+------+------+------+-------+-------+-------+
| Environmental and    | \$   | \$   | \$2  | \$    | *     | *     |
| Climate              | 3    | 3    | 89.3 | 331.2 | *[\$? | *[\$? |
|                      | 07.8 | 24.2 |      |       | ]{.ma | ]{.ma |
|                      |      |      |      |       | rk}** | rk}** |
+----------------------+------+------+------+-------+-------+-------+
| Fisheries            | 53.5 | 56.3 | 49.3 | 53.6  | **[?  | *     |
|                      |      |      |      |       | ]{.ma | *[\$? |
|                      |      |      |      |       | rk}** | ]{.ma |
|                      |      |      |      |       |       | rk}** |
+----------------------+------+------+------+-------+-------+-------+
| Marine Operations    | 57.5 | 50.7 | 51.1 | 51.5  | **[?  | *     |
| and Maintenance and  |      |      |      |       | ]{.ma | *[\$? |
| Aircraft Services    |      |      |      |       | rk}** | ]{.ma |
|                      |      |      |      |       |       | rk}** |
+----------------------+------+------+------+-------+-------+-------+
| Weather Service      | 26.9 | 15.1 | 40.8 | 56.7  | **[?  | *     |
|                      |      |      |      |       | ]{.ma | *[\$? |
|                      |      |      |      |       | rk}** | ]{.ma |
|                      |      |      |      |       |       | rk}** |
+----------------------+------+------+------+-------+-------+-------+
| Other                | 1    | 1    | 1    | 111.1 | **[?  | *     |
|                      | 24.9 | 24.1 | 20.2 |       | ]{.ma | *[\$? |
|                      |      |      |      |       | rk}** | ]{.ma |
|                      |      |      |      |       |       | rk}** |
+----------------------+------+------+------+-------+-------+-------+
| **Total**            | **\$ | **\$ | **\  | *     | *     | *     |
|                      | 570  | 570  | $550 | *\$60 | *[\$? | *[\$? |
|                      | .6** | .4** | .7** | 4.1** | ]{.ma | ]{.ma |
|                      |      |      |      |       | rk}** | rk}** |
+----------------------+------+------+------+-------+-------+-------+

The following table summarizes NOAA's R&D investments for FY 2005
through

FY 2009 by R&D category:

***(In Millions)***

+--------------------------+-----+-----+------+------+------+------+
| **R&D Category**         | **F | **F | **   | **   | **   | *    |
|                          | Y** | Y** | FY** | FY** | FY** | *Tot |
|                          |     |     |      |      |      | al** |
|                          | **  | **  | **20 | **20 | **20 |      |
|                          | 200 | 200 | 07** | 08** | 09** |      |
|                          | 5** | 6** |      |      |      |      |
+--------------------------+-----+-----+------+------+------+------+
| Applied Research         | \$  | \$  | \$4  | \$5  | **[\ | **[\ |
|                          | 51  | 52  | 75.7 | 17.6 | $?]{ | $?]{ |
|                          | 4.8 | 3.1 |      |      | .mar | .mar |
|                          |     |     |      |      | k}** | k}** |
+--------------------------+-----+-----+------+------+------+------+
| Development              | 5   | 4   | 75.0 | 86.5 | **   | **[\ |
|                          | 5.8 | 7.3 |      |      | [?]{ | $?]{ |
|                          |     |     |      |      | .mar | .mar |
|                          |     |     |      |      | k}** | k}** |
+--------------------------+-----+-----+------+------+------+------+
| **Total**                | *   | *   | **\  | **\  | **[\ | **[\ |
|                          | *\$ | *\$ | $550 | $604 | $?]{ | $?]{ |
|                          | 5   | 5   | .7** | .1** | .mar | .mar |
|                          | 70. | 70. |      |      | k}** | k}** |
|                          | 6** | 4** |      |      |      |      |
+--------------------------+-----+-----+------+------+------+------+

The following tables further summarize NOAA's R&D investments for FY
2009 and FY 2008 by performance goal:

***(In Millions)***

  ------------------------------------------ ------------- ------------------ ------------------
  **FY 2009**                                                                 

  Performance Goal                           Applied       Development        Total
                                             Research                         

  Protect, Restore, and Manage the Use of    \$52.8        [\$?]{.mark}       **[\$?]{.mark}**
  Coastal and Ocean Resources Through an                                      
  Ecosystem-based Management//                                                

  Understand Climate Variability and Change  \$32.5        [\$?]{.mark}       **[\$?]{.mark}**
  to Enhance Society\'s Ability to Plan and                                   
  Respond                                                                     

  Serve Society\'s Needs for Weather and     \$35.8        [\$?]{.mark}       **[\$?]{.mark}**
  Water Information                                                           

  Support the Nation\'s Commerce with        \$0.1         [\$?]{.mark}       **[\$?]{.mark}**
  Information for Safe, Efficient, and                                        
  Environmentally Sound Transportation                                        

  **Total**                                  **\$121.2**   **[\$?]{.mark}**   **[\$?]{.mark}**
  ------------------------------------------ ------------- ------------------ ------------------

***(In Millions)***

  ------------------------------------------ ------------- ------------- -------------
  **FY 2008**                                                            

  Performance Goal                           Applied       Development   Total
                                             Research                    

  Protect, Restore, and Manage the Use of    \$229.8       \$11.4        **\$241.2**
  Coastal and Ocean Resources Through an                                 
  Ecosystem Approach to Management                                       

  Understand Climate Variability and Change  145.9         35.7          **\$181.6**
  to Enhance Society\'s Ability to Plan and                              
  Respond                                                                

  Serve Society\'s Needs for Weather and     140.3         39.2          **\$179.5**
  Water Information                                                      

  Support the Nation\'s Commerce with        \$1.6         \$0.2         **\$1.8**
  Information for Safe, Efficient, and                                   
  Environmentally Sound Transportation                                   

  **Total**                                  **\$517.6**   **\$86.5**    **\$604.1**
  ------------------------------------------ ------------- ------------- -------------