**[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
traditionally capitalized 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:*** 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 individual sanctuary sites, which include near-shore coral reefs
and open ocean, conducts research and monitoring activities to
characterize existing resources and document changes.

***Northwestern Hawaiian Islands (NWHI) National Marine Monument:*** The
majority of all coral reef habitats located in U.S. waters surround
NWHI. The NWHI Marine National Monument, located off the coast of NWHI,
encompasses nearly 140,000 square miles of U.S. waters, including 4,500
square miles of relatively undisturbed coral reef habitat that is home
to more than 7,000 species. The Monument will be managed by NOAA, with
the Department of the Interior and the State of Hawaii.

***Aleutian Islands Habitat Conservation Area:*** This conservation area
in Alaska may harbor among the highest diversity 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.

Additional information on the above Stewardship PP&E is presented in the
Required Supplementary Information section. Written policies to guide
the acquisition, maintenance, use, and disposal of the above stewardship
responsibilities are currently being developed.

**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
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. Phase III commenced in
October 2004, and is subdivided into three different projects. Phase
III-A, renovation of Building 306 and mechanical/electrical site work,
was completed in January 2006. Phase III-B, renovation of Buildings 301,
305, and 307, was awarded in September 2005, and is ongoing with an
expected completion date of November 2006. Phase III-C, renovation of
Building 303 and site work, was awarded in August 2006, and is ongoing
with an expected completion date of March 2007. The overall renovation
for the Galveston Laboratory is 75 percent complete as of December 31,
2006.

***National Marine Fisheries Service (NMFS) Aquarium:*** In Woods Hole,
Massachusetts, this aquarium was established in 1885 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 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 permanent exhibition tanks and approximately 12 free
standing aquaria and touch tanks holding more than 140 species of fish
and invertebrates. The tanks range in size from 75 to 2,800 gallons. A
10,000 gallon outdoor habitat holds resident harbor seals. The general
condition of the aquarium is good. 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):*** In Muskegon, Michigan, the GLERL 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 2004, a renovation project was completed that restored the
exterior to its original architecture and color scheme - a style that is
considered rare. Today, the GLERL carries out research and provides
scientific products, expertise, and services required for effective
management and protection of Great Lakes and coastal ecosystems. GLERL
includes three buildings and a research vessel dockage. The function of
the field station is to provide a base of operations for GLERL's primary
research vessel, which is presently the Research Vessel Shenehon, and to
provide a focal point for GLERL's research on Lake Michigan. Due to its
historic significance, exterior architectural features, and predominant
use in government operations, the GLERL 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, and nautical chart plates. More information
regarding NOAA's collection-type heritage assets is presented in the
Required Supplementary Information section.

**[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:

**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 our
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 December 31, 2006, 13 National Marine
Sanctuaries, which include near-shore coral reefs and open ocean, have
been designated, covering a total area of 19 thousand square miles. The
waters and resources of the National Marine Sanctuaries are generally in
good condition, though some specific resources (e.g. certain coral
reefs, some commercial and recreational fisheries, and some benthic
habitats) are threatened. 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.

**Northwestern Hawaiian Islands (NWHI) Marine National Monument:** The
majority of all coral reef habitats located in U.S. waters surround the
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 largest marine conservation area off the coast of
the northern Hawaiian Islands. This conservation area, designated the
Northwestern Hawaiian Islands Marine National Monument, encompasses
nearly 140,000 square miles of U.S. waters, including 4,500 square miles
of relatively undisturbed coral reef habitat that is home to more than
7,000 species. The Monument will be managed by the NOAA National Marine
Sanctuary, with the Department of the Interior and the State of Hawaii.

**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
and may harbor among the highest diversity 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 that
include fragile 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.

***Collection-type Heritage Assets***

The NOAA's collection-type heritage assets are comprised primarily of
books, publications, manuscripts, records, and nautical chart plates.
The table below summarizes NOAA's collection-type heritage assets
balance as of December 31, 2006. The 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.

+------------+-----------+---------+---------+----------+------------+
| ##### C    |           |         |         |          |            |
| ollection- |           |         |         |          |            |
| type Herit |           |         |         |          |            |
| age Assets |           |         |         |          |            |
+------------+-----------+---------+---------+----------+------------+
| **Entity** | **De      | **Q     | **FY    | **FY     | **Quantity |
|            | scription | uantity | 2007    | 2007     | of**       |
|            | of        | of**    | Addi    | Withd    |            |
|            | Assets**  |         | tions** | rawals** | **Items    |
|            |           | **Items |         |          | Held**     |
|            |           | Held**  |         |          |            |
|            |           |         |         |          | **         |
|            |           | **9/    |         |          | 12/31/06** |
|            |           | 30/06** |         |          |            |
+------------+-----------+---------+---------+----------+------------+
| National   | Publ      | 150,725 | **?**   | **?**    | **?**      |
| Env        | ications, |         |         |          |            |
| ironmental | books,    |         |         |          |            |
| Satellite, | man       |         |         |          |            |
| Data and   | uscripts, |         |         |          |            |
| I          | pho       |         |         |          |            |
| nformation | tographs, |         |         |          |            |
| Service    | and maps  |         |         |          |            |
| Library    |           |         |         |          |            |
+------------+-----------+---------+---------+----------+------------+
| Others     | A         | 112,522 | **?**   | **?**    | **?**      |
|            | rtifacts, |         |         |          |            |
|            | artwork,  |         |         |          |            |
|            | books,    |         |         |          |            |
|            | films,    |         |         |          |            |
|            | ins       |         |         |          |            |
|            | truments, |         |         |          |            |
|            | maps, and |         |         |          |            |
|            | records   |         |         |          |            |
+------------+-----------+---------+---------+----------+------------+
| **Total**  | ** **     | **26    |         |          |            |
|            |           | 3,247** |         |          |            |
+------------+-----------+---------+---------+----------+------------+

**[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 NER system consists
of 27 estuarine reserves protected by federal, state, and local
partnerships that work to preserve and protect the nation's estuaries.
The NER 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
December 31, 2006, encompassed approximately 1.3 million acres of
estuarine waters, wetlands, and uplands. The newest reserve,
Mission-Aransas, Texas, was designated on May 3, 2006. NERs 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 NER 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
133 such projects.

**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. 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 2003
through FY 2007 were as follows:

***(In Millions)***

  ------------------------------ -------- -------- -------- -------- -------- -----------
  **Program**                    **FY     **FY     **FY     **FY     **FY     **Total**
                                 2003**   2004**   2005**   2006**   2007**   

  National Estuarine Research    \$ 24.0  \$ 0.5   \$ 15.4  \$ 6.8   **?**    **?**
  Reserves                                                                    

  Coastal and Estuarine Land     3.6      21.8     15.5     18.5     **?**    **?**
  Conservation Program                                                        

  **Total**                      **\$     **\$     **\$     **\$     **?**    **?**
                                 27.6**   22.3**   30.9**   25.3**            
  ------------------------------ -------- -------- -------- -------- -------- -----------

***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 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 3
years of funding.

**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. In FY 2007, \_?\_ Graduate
Research Fellowships have been awarded.

**Educational Partnership Program:** This program provides formal
education and internship training opportunities for students attending
minority-serving institutions. These funds also support field research
and conference attendance where students present their research
findings. The Undergraduate Scholarship Program 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 2 years, 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.
There were \_?\_ students who started the program in FY 2007.

**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. There were \_?\_ students starting the program in
2007, and the first scholarship recipients are expected to complete the
program in May 2007.

The following table summarizes NOAA's investments in human capital for
FY 2003 through FY 2007:

***(In Millions)***

+----------------------------+----+------+------+------+----+-------+
| **Program**                | ** | **   | **   | **   | ** | **To  |
|                            | FY | FY** | FY** | FY** | FY | tal** |
|                            | ** |      |      |      | ** |       |
|                            |    | **20 | **20 | **20 |    |       |
|                            | ** | 04** | 05** | 06** | ** |       |
|                            | 20 |      |      |      | 20 |       |
|                            | 03 |      |      |      | 07 |       |
|                            | ** |      |      |      | ** |       |
+----------------------------+----+------+------+------+----+-------+
| National Sea Grant College | \$ | \$   | \$   | \$   | *  | **?** |
| Program                    | 0  | 0.6  | 0.7  | 0.7  | *? |       |
|                            | .7 |      |      |      | ** |       |
+----------------------------+----+------+------+------+----+-------+
| National Estuarine         | 0  | 0.8  | 0.9  | 0.9  | *  | **?** |
| Research Reserve Program   | .1 |      |      |      | *? |       |
|                            |    |      |      |      | ** |       |
+----------------------------+----+------+------+------+----+-------+
| Education Partnership      | N  | N/A  | 7.0  | 13.9 | *  | **?** |
| Program                    | /A |      |      |      | *? |       |
|                            |    |      |      |      | ** |       |
+----------------------------+----+------+------+------+----+-------+
| Ernest F. Hollings         | N  | N/A  | 0.3  | 3.8  | *  | **?** |
| Undergraduate Scholarship  | /A |      |      |      | *? |       |
| Program                    |    |      |      |      | ** |       |
+----------------------------+----+------+------+------+----+-------+
| **Total**                  | ** | **\$ | **\$ | **\$ | *  | **?** |
|                            | \$ | 1    | 8    | 19   | *? |       |
|                            | 0  | .4** | .9** | .3** | ** |       |
|                            | .8 |      |      |      |    |       |
|                            | ** |      |      |      |    |       |
+----------------------------+----+------+------+------+----+-------+
| N/A = Not Applicable       |    |      |      |      |    |       |
+----------------------------+----+------+------+------+----+-------+

The following table further summarizes NOAA's human capital investments
for FY 2005 to FY 2007 by performance goal:

***(In Millions)***

+-------------------------------------------------+------+------+-----+
| **Performance Goal**                            | **   | **   | **F |
|                                                 | FY** | FY** | Y** |
|                                                 |      |      |     |
|                                                 | **20 | **20 | **  |
|                                                 | 05** | 06** | 200 |
|                                                 |      |      | 7** |
+-------------------------------------------------+------+------+-----+
| Protect, Restore, and Manage the Use of Coastal | \$   | \$   | **  |
| and Ocean Resources Through an Ecosystem        | 8.9  | 19.3 | ?** |
| Approach to Management                          |      |      |     |
+-------------------------------------------------+------+------+-----+

***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.
NOAA's research laboratories, Office of Global Programs, 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:** NOAA's NMFS is responsible for the management and
stewardship of living marine resources and their habitat within the
Nation's Exclusive Economic Zone. 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. 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. 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. Our 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.

The NOAA's R&D investments by program for FY 2003 through FY 2007 were
as follows:

***(In Millions)***

  ---------------------------- --------- --------- --------- --------- -------- -----------
  **Program**                  **FY      **FY      **FY      **FY      **FY     **Total**
                               2003**    2004**    2005**    2006**    2007**   

  Environmental and Climate    \$ 351.4  \$ 317.9  \$ 307.8  \$ 324.2  **?**    **?**

  Fisheries                    156.4     70.6      53.5      56.3      **?**    **?**

  Marine Operations and        90.4      51.7      57.5      50.7      **?**    **?**
  Maintenance and Aircraft                                                      
  Services                                                                      

  Weather Service              20.4      17.6      26.9      15.1      **?**    **?**

  Other                        83.3      116.5     124.9     124.1     **?**    **?**

  **Total**                    **\$      **\$      **\$      **\$      **?**    **?**
                               701.9**   574.3**   570.6**   570.4**            
  ---------------------------- --------- --------- --------- --------- -------- -----------

The following table summarizes NOAA's R&D investments for FY 2003
through

FY 2007 by R&D category:

***(In Millions)***

+----------------------------+-----+-----+-----+-----+-----+-------+
| **R&D Category**           | **F | **F | **F | **F | **F | **To  |
|                            | Y** | Y** | Y** | Y** | Y** | tal** |
|                            |     |     |     |     |     |       |
|                            | **  | **  | **  | **  | **  |       |
|                            | 200 | 200 | 200 | 200 | 200 |       |
|                            | 3** | 4** | 5** | 6** | 7** |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
| Applied Research           | \$  | \$  | \$  | \$  | **  | **?** |
|                            | 68  | 54  | 51  | 52  | ?** |       |
|                            | 0.8 | 6.7 | 4.8 | 3.1 |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
| Development                | 2   | 2   | 5   | 4   | **  | **?** |
|                            | 1.1 | 7.6 | 5.8 | 7.3 | ?** |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
| **Total**                  | *   | *   | *   | *   | **  | **?** |
|                            | *\$ | *\$ | *\$ | *\$ | ?** |       |
|                            | 7   | 5   | 5   | 5   |     |       |
|                            | 01. | 74. | 70. | 70. |     |       |
|                            | 9** | 3** | 6** | 4** |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+

The following tables further summarize NOAA's R&D investments for FY
2007 and

FY 2006 by performance goal:

***(In Millions)***

  ------------------------------------------ ---------- ------------- -------
  **FY 2007**                                                         

  Performance Goal                           Applied    Development   Total
                                             Research                 

  Protect, Restore, and Manage the Use of    **?**      **?**         **?**
  Coastal and Ocean Resources Through an                              
  Ecosystem Approach to Management                                    

  Understand Climate Variability and Change  **?**      **?**         **?**
  to Enhance Society\'s Ability to Plan and                           
  Respond                                                             

  Serve Society\'s Needs for Weather and     **?**      **?**         **?**
  Water Information                                                   

  Support the Nation\'s Commerce with        **?**      **?**         **?**
  Information for Safe, Efficient, and                                
  Environmentally Sound Transportation                                

  **Total**                                  **?**      **?**         **?**
  ------------------------------------------ ---------- ------------- -------

***(In Millions)***

  ------------------------------------------ ---------- ------------- ---------
  **FY 2006**                                                         

  Performance Goal                           Applied    Development   Total
                                             Research                 

  Protect, Restore, and Manage the Use of    \$ 250.7   \$ 14.0       \$ 264.7
  Coastal and Ocean Resources Through an                              
  Ecosystem Approach to Management                                    

  Understand Climate Variability and Change  160.2      12.3          172.5
  to Enhance Society\'s Ability to Plan and                           
  Respond                                                             

  Serve Society\'s Needs for Weather and     109.0      20.9          129.9
  Water Information                                                   

  Support the Nation\'s Commerce with        3.2        0.1           3.3
  Information for Safe, Efficient, and                                
  Environmentally Sound Transportation                                

  **Total**                                  **\$       **\$ 47.3**   **\$
                                             523.1**                  570.4**
  ------------------------------------------ ---------- ------------- ---------