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Staff Contact: Russ Vought (x68581) May 24, 2006

**Appropriations Policy Brief**

**H.R. 5427 --- Energy and Water Appropriations Act for FY 2007**

**[Comparison to the RSC Budget]{.underline}:**

**Overview:** The RSC budget provided \$829 billion in discretionary
spending for FY 2007, compared to the \$873 billion allotted in the
House-reported resolution (H.Con.Res. 376). While the RSC budget did not
apportion this discretionary spending level by subcommittee---the 302(b)
allocation process---it did call for many program reductions within the
jurisdiction of the Energy and Water Development Subcommittee. Below are
highlights:

[]{.mark}

**Applied Research for Fossil Fuels Energy.** Each year, the Department
of Energy (DoE) receives roughly \$500 million to fund applied research
on sources and uses of petroleum, coal and natural gas. Although the
federal government may have a role in basic research, it is questionable
whether it should be engaged in applied research---particularly when
this type of research is conducted by numerous private sector suppliers
generating extensive general revenues with which they fund private
fossil fuel research. Often times applied research funding is simply
corporate welfare for the oil, gas, and utility industries. The RSC
Budget would eliminate funding for the DoE Applied Research for Fossil
Fuels Energy. H.R. 5427 provides \$558.2 million for this research,
\$39.8 million less than last year.

**Energy Supply and Conservation Programs.** These programs are designed
to develop new energy conserving technology, as well as improve
productivity of existing energy technology, using basic and applied
research. Businesses have incentives to market, and customers to buy,
conservation technologies that work well. DoE is left to fund the less
reliable and less promising technologies. The RSC Budget would eliminate
funding for Energy Supply and Conservation Programs. H.R. 5427 provides
\$2 billion for these programs, \$212.9 million more than last year and
\$102 million more than the request.

**Economic Development Commissions.** Under current law, the federal
government provides annual funding to three regional development
agencies---the Appalachian Regional Commission (ARC), the Denali
Commission (Alaska), and the Delta Regional Authority (Mississippi River
Area)---to promote economic growth and development to communities in
eligible counties and parishes. The activities of these programs are
duplicated by a number of federal agencies. H.R. 5427 reduces funding
for the ARC from \$64.8 million to \$35.5 million and for the Denali
Commission from \$49.5 million to \$7.5 million. H.R. 5427 also reduces
funding for the Delta Regional Authority from \$11.9 million to \$5.9
million.

[]{.mark}

**[Items of Note]{.underline}:**

**Nuclear Energy:** Provides \$529.8 million for nuclear energy programs
(\$113.9 million more than last year and \$29.9 million less than the
request), including the Nuclear Power 2010 initiative (\$54 million) to
build the first nuclear power plant in the U.S. in three decades.

[]{.mark}

**Hydrogen Fuel Initiative:** Provides \$195.8 million for hydrogen
technology (\$40.2 million more than last year and the same as the
request).

**Outsourcing/A-76 Activities:** Prohibits funding to implement a study
to outsource or privatize Army Corps personnel employed to operate or
maintain locks and dams.

**Elk Creek Dam:** Prohibits funding to remove a section of the dam for
fish passage or study alternatives to the trap and haul facility at Elk
Creek Dam, Oregon.

**Program Terminations:** According to the Committee, H.R. 5427
terminates four programs---state energy program grants, geothermal R&D
technology, natural gas R&D technology, and construction for a mixed
oxide fuel plant---saving \$460.5 million.

**[Earmarks:]{.underline}**

According to the Committee, the bill includes \$1 billion in earmarks,
\$197 million or 16% less than last year's House-passed level. Below is
a small selection of the projects:

-   \$8.4 million for Rio Solada, Phoenix, and Tempe Reaches, AZ

-   \$43.5 million for Oakland Harbor, CA

-   \$164 million for South Florida Everglades Ecosystem Restoration, FL

-   \$90 million for New York and New Jersey Harbor, NY and NJ

-   \$1.2 million for a waterline extension in Clark County

-   \$1 million for Fairfield County, Village of Rushville wastewater
    plant expansion

-   \$1 million for the City of Louisville environmental infrastructure
    improvement program

-   \$2 million for Brunswick Harbor, GA

-   \$200,000 for the Hemenway Valley project in Southeastern Rural NV

-   \$565,000 for Crum Creek in Southeast PA

-   \$4 million for Jones Inlet, NY

-   \$1 million for Canaveral Harbor, FL

-   \$300,000 for the Duluth Superior Harbor in MI and WI

-   \$1.9 million for Burns Harbor, IN for maintenance dredging

-   \$200,000 for Rock Island Boat Harbor in IL for maintenance dredging

-   \$488,000 for Osceloa Harbor, AR for maintenance dredging

-   \$51 million for river fish and wildlife mitigation activities in MO

-   \$1.2 million for Table Rock, MO to construct a boat ramp

-   \$1.8 million for Whitney Lake, TX for improvements to Ham Creek
    Park

-   \$1 million for Whitney Lake, TX for improvements to Kimball Bend
    Park

-   \$500,000 for Moss Landing Harbor, CA to complete a dredging plan
    and for additional fish sampling

-   \$750,000 for the Arbuckle-Simpson Aquifer Study in Oklahoma
    Investigations Program

-   \$19.9 million for heavy truck engine research and development

-   \$1 million for the Missouri Alternative/Renewable Energy Technology
    Center at Crowder College in MO

-   \$1 million for Life Science Research at Michigan Research Institute
    MI

-   \$1 million for Augsburg College in MN

-   \$500,000 for Biomedical Imaging at the University of NC

**[Funding Summaries]{.underline}:**

[]{.mark}

*In Thousands*

  ----------------------------------------------------------------------------- ------------ ------------ ------------ ------------ ----------- ---------- -----------
                                                                                **FY 06      **FY 07      **FY 07      **Cmte Over  **Cmte Over **% Over   **% Over
                                                                                Enacted**    Request**    Cmte**       FY06**       Request**   FY06**     Request**

  **Corps of Engineers**                                                                                                                                    

  General Investigations\...\...\...\...\...\...\...\...\....                   162,360      94,000       128,000      -34,360      34,000      -21.16%    36.17%

  Construction\...\...\...\...\...\...\...\...\...\...\...\...\...\...          2,348,280    1,555,000    1,929,471    -418,809     374,471     -17.83%    24.08%

  Flood Control - MS River & Tributaries.                                       396,000      278,000      290,607      -105,393     12,607      -26.61%    4.53%

  Operations & Maintenance\...\...\...\...\...\.....                            1,969,110    2,258,000    2,195,471    226,361      -62,529     11.50%     -2.77%

  Regulatory Programs\...\...\...\...\...\...\...\...\...\...                   158,400      173,000      173,000      14,600       0           9.22%      0.00%

  Flood Control & Coastal Emergencies\....                                      0            81,000       32,000       32,000       -49,000     0.00%      -60.49%

  General Expenses\...\...\...\...\...\...\...\...\...\...\.....                152,460      164,000      142,100      -10,360      -21,900     -6.80%     -13.35%

  Total, Corps of Engineers\...\...\...\...\.....                               8,228,719    4,733,000    4,983,803    -3,244,916   250,803     -39.43%    5.30%

  **Dept of Interior**                                                                                                                                      

  Central Utah Project\...\...\...\...\...\...\...\...\...\...                  31,351       37,587       37,587       6,236        0           19.89%     0.00%

  Water and Related Resources\...\...\...\...\...\...                           874,679      833,424      849,122      -25,557      15,698      -2.92%     1.88%

  Central Valley Project\...\...\...\...\...\...\...\...\....                   52,219       41,478       41,478       -10,741      0           -20.57%    0.00%

  California Bay-Delta Restoration\...\...\.....                                36,630       38,610       40110        3,480        1,500       0.00%      3.89%

  Policy & Administration\...\...\...\...\...\...\...\...                       57,338       58,069       58,069       731          0           1.27%      0.00%

  Total, Dept of Interior\...\...\...\...\...\...\...                           1,054,873    923,736      940,934      -113,939     17,198      -10.80%    1.86%

  **Dept of Energy**                                                                                                                                        

  Energy Supply\...\...\...\...\...\...\...\...\...\...\...\...\....            1,812,627    1,923,361    2,025,527    212,900      102,166     11.75%     5.31%

  Fossil Energy Research\...\...\...\...\...\...\...\...\...\....               592,014      469,686      558,204      -33,810      88,518      -5.71%     18.85%

  Naval Petroleum and Oil Shale Reserves\....                                   21,285       18,810       18,810       -2,475       0           -11.63%    0.00%

  Elk Hills School Lands Fund\...\...\...\...\...\...\.....                     83,160       0            0            -83,160      0           -100.00%    

  Strategic Petroleum Reserve\...\...\...\...\...\...\...\...                   164,340      155,430      155,430      -8,910       0           -5.42%     0.00%

  Northeast Home Heating Oil Reserve\...\...\...                                0            4,950        4,950        4,950        0           0           

  Energy Information Adminstration\...\...\...\....                             85,314       89,769       89,769       4,455        0           5.22%      0.00%

  Uranium Enrichment Decontam \...\...\.....                                    556,606      579,368      579,368      22,762       0           4.09%      0.00%

  Non-Defense Environmental Services\....                                       349,687      310,358      309,946      -39,741      -412        -11.36%    -0.13%

  Science\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...   3,596,393    4,101,710    4,131,710    535,317      30,000      14.88%     0.73%

  Nuclear Waste Disposal\...\...\...\...\...\...\...\.....                      148,500      156,420      186,420      37,920       30,000      25.54%     19.18%

  Departmental Administration\...\...\...\...\....                              250,289      278,382      278,382      28,093       0           11.22%     0.00%

  Inspector General\...\...\...\...\...\...\...\...\...\...\.....               41,580       45,507       45,507       3,927        0           9.44%      0.00%

  National Nuclear Security Admin\...\...\.....                                 9,104,497    9,315,811    9,199,811    95,314       -116,000    1.05%      -1.25%

  Other Defense Activities\...\...\...\...\...\...\...\...                      635,577      717,788      720,788      85,211       3,000       13.41%     0.42%

  Defense Nuclear Waste Disposal\...\...\...\...                                346,500      388,080      388,080      41,580       0           12.00%     0.00%

  Power Marketing Administrations\...\...\....                                  269,725      251,975      251,975      -17,750      0           -6.58%     0.00%

  Total, Dept of Energy\...\...\...\...\...\...\....                            24,046,772   24,074,717   24,373,489   326,717      298,772     1.36%      1.24%

  **Independent Agencies**                                                                                                                                  

  Appalachian Regional Commission\...\.....                                     64,817       65,472       35,472       -29,345      -30,000     -45.27%    -45.82%

  Def Nuclear Facilities Safety Board\...\.....                                 21,812       22,260       22,260       448          0           2.05%      0.00%

  Delta Regional Authority\...\...\...\...\...\...\.....                        11,880       5,940        5,940        -5,940       0           -50.00%    0.00%

  Denali Commission\...\...\...\...\...\...\...\...\...\.....                   49,500       2,536        7,536        -41,964      5,000       -84.78%    197.16%

  Nuclear Regulatory Commission\...\...\...\....                                116,022      148,082      152,082      36,060       4,000       31.08%     2.70%

  Nuclear Waste Technical Review Board\...\...\...\...                          3,572        3,670        3,670        98           0           2.74%      0.00%

  Total, Independent Agencies\...\...\...\....                                  268,426      248,774      227,774      -40,652      -21,000     -15.14%    -8.44%
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