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Department of the Interior Department of Agriculture Environmental
Protection Agency Council on Environmental Quality

Contact: Mark Pfeifle Contact: Julie Quick Contact: Cynthia Bergman
Contact: Dana Perino

202-208-6416 202-720-4623 202-564-9828 202-456-6224

Release No. 0054.04

**FOR RELEASE: FEBRUARY 2, 2004**

**President Bush's FY2005 Budget Will Continue Positive Environmental
Progress**

President Bush submitted a 2005 environmental budget today that includes
the highest level of funding ever requested by a President for
high-priority environment and natural resource programs. His budget is
focused on measuring performance and producing results, building on the
significant progress the Nation has made in improving air quality,
restoring public lands, providing cleaner water, and protecting our
resources and wildlife. For example, over the last thirty years, as the
U.S. economy expanded 164 percent, population rose 39 percent, and
energy consumption increased by 42 percent, air pollution from the six
major pollutants decreased by 48 percent. The President's policies are
focused on delivering even greater progress across the board.

President Bush's budget request reflects his commitment to achieving
results. It invests heavily in the programs that have been proven to
work and in innovative programs to work even better. The budget also
emphasizes and supports collaborative efforts between the federal, state
and local governments to pursue more local solutions to environmental
challenges. Interior Department Secretary Gale Norton, Agriculture
Department Secretary Ann M. Veneman, EPA Administrator Mike Leavitt and
White House Council on Environmental Quality Chairman James L.
Connaughton made the following statements:

**Secretary of the Interior Gale Norton**

"President Bush's budget is focused on achieving results to conserve our
natural and cultural resources, serve communities, improve recreational
opportunities and promote partnered problem solving," Interior Secretary
Gale Norton said. "A tremendous example of the president's environmental
commitment is his \$53 million increase for the Abandoned Mine Lands
program -- the largest funding increase since states established AML
funding programs almost twenty years ago. The increase is part of a plan
to eliminate all significant health and safety problems associated with
abandoned coal mines within 25 years."

**Secretary of Agriculture Ann M. Veneman**

"Farmers and ranchers are some of the best stewards of the land.
President Bush's budget includes funding for good conservation measures
and forest protections," Agriculture Secretary Ann M. Veneman said. "The
fiscal year 2005 budget includes increases in important programs such as
the Environmental Quality Incentives Program, Conservation Reserve
Program and Conservation Security Program, as well as key funding
increases under the Healthy Forests Initiative to make our forests
healthier, our communities safer and wildfires less destructive."

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**EPA Administrator Mike Leavitt**

"With the President's budget, we can pick up the pace \-- protecting our
land, cleaning our air and cleansing our water \-- efficiently,
effectively and without impairing the economy," said EPA Administrator
Mike Leavitt. "We can accelerate our environmental progress in
protecting our spectacular landscapes, our vital ecosystems, and the
health of our communities and their citizens."

**White House Council on Environmental Quality Chairman James L.
Connaughton**

"The Bush Administration has embraced the philosophy that a growing
American economy is the solution to improving our environmental
quality," said Jim Connaughton, chairman of the White House Council on
Environmental Quality. "The funding priorities within this budget will
advance the many performance-based initiatives President Bush has
launched to clean our air and water, restore our lands, protect wildlife
habitat, and encourage the ethic and practice of personal stewardship."

**President Bush's FY2005 Budget Will Continue**

**Positive Environmental Progress**

-   **The 2005 budget proposes record funding for high-priority
    environment and natural resource programs and emphasizes measuring
    performance and effectiveness by:**

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-   Proposing \$46.9 billion for high-priority environment and natural
    resource programs, [the highest level ever requested by a
    President]{.underline}. This funding level is \$1.4 billion, or
    roughly 3 percent, higher than the President's 2004 budget.

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-   Emphasizing measuring program performance and effectiveness. Based
    on these measures, the Administration seeks to increase funding for
    highly effective programs.

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-   **To build on the progress the nation has made in reducing air
    pollution and ensuring cleaner air for future generations, the
    President's budget provides:**

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-   Funding for his Clear Skies Initiative to cut power plant pollution
    by 70 percent, when implemented, the Interstate Air Quality rule,
    and the Administration's new regulations on diesel engines and fuel.

-   An increase in funding, from \$5 million to \$65 million, for the
    Clean School Bus USA program, which supports projects that reduce
    diesel emissions from school buses through bus retrofit or
    replacement activities. By expanding this program, additional
    resources are available to communities for local initiatives that
    address an issue important to children and parents across the
    nation.

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-   **To restore our forests and grasslands to more natural, healthy
    conditions, and to reduce the threat of catastrophic wildfires, the
    President's budget provides:**

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-   A \$58 million, or 14 percent, increase for Department of the
    Interior and Department of Agriculture fuels reduction (thinning of
    dense brush and undergrowth) program. The total program funding of
    \$476 million is now four times the amount provided in fiscal
    year 2000. The two Departments propose a total of \$760 million for
    fuels reduction and other activities that advance the Healthy Forest
    Restoration Act signed on Dec. 3, 2003 by the President.

-   Together with this increased funding, the budget reflects an
    improved environmental review process, increased collaboration with
    local communities, and other tools provided in the Healthy Forests
    Initiative that will enable Interior and Agriculture to reduce the
    excessive build-up of hazardous fuels in our Nation's forests and
    rangelands, reduce in priority areas the risk of catastrophic fire
    to communities, help save the lives of firefighters and citizens,
    and protected threatened and endangered species.

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-   **To eliminate the dangers emanating from abandoned coal mines, the
    President\'s budget provides:**

    -   An increase of \$53 million, or 28 percent, for the Abandoned
        Mine Lands (AML) program, the largest funding increase since
        states established their AML funding programs almost twenty
        years ago. While not part of the environment crosscut, this
        program is worth highlighting. The proposed increase accompanies
        a plan to eliminate all significant health and safety problems
        associated with abandoned coal mines within 25 years. Under the
        current program, it would take an average of 47 years to reclaim
        the most dangerous abandoned coal mines. In addition to
        resolving serious health and safety problems, by acting now to
        refocus the program and directing funding to the highest
        priority sites, the AML reforms will save more than \$3 billion
        over the life of the program.

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-   **To manage, improve and restore to good order our National Parks
    and Wildlife Refuges, the President's budget provides:**

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-   \$2.6 billion to manage the National Park system and the Fish and
    Wildlife Service core operations. This includes a \$76 million, or 5
    percent, increase for NPS operations (nearly \$1.7 billion total).

-   A \$4.6 million increase (\$77.6 million total) for National Park
    Service's Natural Resource Challenge, the ongoing effort to measure
    the condition of natural resources in national parks.

-   Over \$1.1 billion in funds for maintenance of park facilities and
    roads, a 37 percent increase over 2001 and nearly double the amount
    from just seven years ago. This \$77 million increase over last year
    will bring the total investment in park facilities maintenance
    during this Administration to \$3.9 billion over four years and help
    fulfill the President's funding commitment to provide \$4.9 billion
    over 5 years. Equally importantly, the National Park Service now has
    for the first time in its history an asset management system in
    place to establish the actual conditions of NPS facilities and
    objectively measure improvements in their condition.

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-   **To continue developing clean, domestic energy options that will
    reduce our dependence on foreign oil, and cut air and pollution
    greenhouse gas emissions, the President's budget provides:**

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-   Continuing support for his 5-year, \$1.2 billion initiative to
    research and develop hydrogen production, storage, and
    infrastructure technologies to accelerate the introduction of
    commercially viable hydrogen-powered fuel cells for cars, trucks,
    homes, and businesses, while producing virtually no pollution or
    greenhouse gases.

-   \$447 million for the President's Coal Research Initiative to
    improve the environmental performance of coal power plants by
    reducing emissions and improving efficiency. This includes \$237
    million for the "FutureGen" coal-fired, zero-emissions electricity
    and hydrogen power plant announced by the President in
    February 2003. While this program is not part of the environment
    crosscut, it is worth noting as an important initiative.

-   Tax incentives totaling \$4.2 billion through 2009 to spur the use
    of clean, renewable energy and energy-efficient technologies, such
    as hybrid and fuel-cell vehicles, residential solar heating systems,
    renewable energy produced from landfill gas, wind or biomass, and
    efficient combined heat and power systems. These incentives are not
    included in the environment crosscut, but they, too, are worth
    highlighting in this context.

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-   **To continue the President's support for increased scientific
    research on global climate, the budget provides:**

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-   \$238 million for the Climate Change Research Initiative (CCRI), a
    \$70 million increase, or 42 percent, over 2004. This funding level
    includes \$57 million to accelerate efforts to advance understanding
    of the role of aerosols in climate science, better quantify carbon
    sources and sinks, and improve the technology and infrastructure
    used to observe and model climate variations. The CCRI focuses on
    reducing significant uncertainties in climate science, improving
    global climate observing systems, and developing resources to
    support policymaking and resource management.

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-   **To ensure cleaner, safer water, the President's budget provides:**

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-   \$45 million for the Great Lakes Legacy Program, almost five times
    the 2004 level of \$10 million. These additional funds will allow
    EPA, in conjunction with its community partners, to begin
    remediating contaminated sediments at six sites. Sediment
    remediation will help keep toxics such as polychlorinated biphenyls
    and heavy metals from entering the food chain, where they may cause
    adverse effects on human health and the environment.

-   \$25 million for the Targeted Watersheds program, a \$10 million
    increase, or 67 percent, over the 2004 Consolidated Appropriations
    legislation level. Through this program, EPA will provide
    competitive grants to communities to implement watershed protection
    and restoration plans. Of the \$25 million, \$10 million is
    designated for a regional pilot program. The 2005 pilot will take
    place in the Chesapeake Bay, with the funds used to help
    publicly-owned treatment works implement nonpoint source projects to
    comply with nutrient discharge limits.

-   \$20 million for a new water quality monitoring initiative. This
    proposal provides \$17 million in grants and \$3 million in
    technical assistance to help States and tribes develop and implement
    statistically representative water quality monitoring programs. This
    consistency across programs will eventually allow EPA to make a
    national determination of water quality and ensure resources target
    the highest priority problems.

-   \$21 million for Water 2025, an increase of \$13.3 million for this
    initiative that strategically addresses the problem of competing
    demands for a finite water supply. While this funding is not part of
    the environment crosscut, it is of significant importance. Water
    2025 will help States, Tribes, and local communities improve
    conservation, implement efficiencies, and monitor water resources.
    In some cases, collaborative approaches and market-based transfers
    can use water banks or other means to meet emerging needs. Federal
    investments in research and development will provide more affordable
    water treatment technologies, such as desalination, to increase
    water supplies in critical areas.

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-   **To ensure cleaner lands through waste site clean-ups and
    continuous monitoring, the President's budget provides:**

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-   \$7.4 billion, an increase of around \$400 million over 2004, for
    the Department of Energy's (DOE) Environmental Management program to
    accelerate hazardous and radioactive waste cleanup projects at
    federal facilities. The 2005 Budget contains the highest request
    ever for the program.

-   A total of \$210 million for brownfields cleanup, a \$40 million, or
    24 percent, increase over the 2004 Consolidated Appropriations
    legislation level. The funding includes an increase for grants and
    loans to fund clean up of lightly contaminated sites.

-   \$1.4 billion for the Superfund, a \$124 million, or 10 percent
    increase, over the 2004 Consolidated Appropriations legislation
    level. This increase reflects a 48 percent boost targeted for the
    Superfund's remedial program, which will allow 8-12 additional
    construction starts in 2005 and a similar number of additional
    completions by 2006.

-   An increase of \$26 million, or 217 percent, over the 2004
    Consolidated Appropriations legislation level to strengthen EPA's
    partnership with the States to monitor underground storage tanks.
    Recognizing that States have primary responsibility for monitoring
    tanks, issuing permits and enforcing regulations, the additional
    grant money will provide funds for States to inspect a larger
    universe of federally regulated underground storage tanks on a more
    frequent basis as they continue to administer the Underground
    Storage Tank Program under delegated authority from EPA.

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-   **To ensure strong and efficient regulatory, research and
    enforcement activities, and improved collaboration with states
    through grant programs, the President's budget provides:**

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-   \$4.4 billion --- the highest level in EPA history --- \$33 million,
    or one percent, above the 2004 budget for the EPA's Operating
    Program. The Operating Program consists of EPA's core regulatory,
    research and enforcement activities and state program grants.

-   \$1.25 billion for EPA categorical State grants, the highest level
    in EPA history. This \$84 million increase, or 7 percent, will
    provide additional resources to States and tribes to run their core
    environmental programs. Included within this total is a new \$23
    million State and Tribal Performance Fund which will award
    competitive grants for projects that can demonstrate environmental
    and public health outcomes.

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-   **To promote conservation efforts, personal stewardship and
    responsibility, the President's budget provides:**

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-   Over \$500 million for Department of the Interior cooperative
    conservation programs, including a \$25.5 million increase for the
    Cooperative Conservation Initiative, an initiative that embodies the
    Administration's vision of healthy lands, thriving communities, and
    dynamic economies through partnerships with State and local
    governments, Tribes, and private landowners. The High Plains
    Partnership, for example, received a \$5 million increase to enhance
    habitat on private lands on two million acres across the 11-state
    High Plains region.

-   A 400 percent increase in funding for the Conservation Security
    Program (CSP), with a total program level of \$209 million. The CSP
    is a new program being implemented in 2004 that supports ongoing
    conservation stewardship of agricultural lands by providing
    assistance to producers who maintain and enhance natural resource
    conditions. The program identifies and rewards farmers and ranchers
    who are meeting the highest standards of conservation and
    environmental management on their operations. In turn, CSP creates
    incentives for other producers to meet those same standards of
    conservation performance.

-   \$4.6 billion, a \$245 million increase, for implementation of Farm
    Bill conservation programs. Major increases include \$168 million
    for the new Conservation Security Program; \$76 million for the
    Conservation Reserve Program; \$25 million for the Environmental
    Quality Incentives Program; and \$18 million for the Wildlife
    Habitat Incentives Program. This funding will have multiple benefits
    for improving water quality, conserving farmland, and protecting
    wildlife habitat.

-   \$900 million for Land and Water Conservation Fund (LWCF) programs.
    Consistent with the purposes of the LWCF Act, programs such as
    Forest Legacy and the Cooperative Conservation Initiative promote
    stewardship of natural resources through partnerships rather than
    federal land acquisition. The budget, for example, proposes
    significant increases for Fish and Wildlife Service conservation
    grant programs, such as an \$11 million increase, or 16 percent over
    2004, for the State and Tribal Wildlife Grants program, and a \$20
    million increase, or 69 percent over 2004, for the Landowner
    Incentive Grants program.

-   \$20 million in funding to phase-in a multi-year Department of
    Defense (DOD) Readiness and Environmental Protection Initiative to
    utilize the authority DOD received in the 2003 Defense Authorization
    Act. This authority allows DOD to work with environmental
    conservation organizations and state and local governments to
    preserve land surrounding military installations. The Readiness and
    Environmental Protection Initiative will support an array of
    efforts, including acquisition of land and easements, for preventing
    undesirable development around military test and training ranges,
    while ensuring sound environmental stewardship.

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-   **To protect fish and wildlife habitat, and build on the success of
    Administration restoration efforts, the President's budget
    provides:**

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-   Over \$67 million for the Klamath Basin, an increase of over \$16
    million from Fiscal Year 2004 to help find a long-term resolution to
    the conflict in the Klamath River Basin that will provide water to
    farmers who depend on it for a living, while taking careful steps to
    protect and enhance the health of fish populations. While this
    funding is not part of the environment crosscut, it is worth noting.
    Together with funds available in Fiscal Year 2004, this increase in
    the President's budget will include funds for habitat restoration,
    removal of fish migration barriers, land acquisition, and the use of
    water banking. Funding in other agencies brings total funding for
    Klamath Basin projects to over \$100 million.

-   More than \$600 million for Columbia River system salmon, through
    the Department of Energy/Bonneville Power Administration, the Army
    Corps of Engineers, the Environmental Protection Agency, and the
    Departments of the Interior, Agriculture, and Commerce. This amount
    includes discretionary funding of \$342 million, a \$15 million
    increase over 2004.

-   \$100 million for the Pacific Coastal Salmon Recovery Fund to assist
    states, tribes, and local governments with thousands of projects
    that benefit Pacific coastal salmon in Washington, Oregon,
    California, Idaho, and Alaska. This represents a \$10 million
    increase over 2004. Restoration of endangered salmon stocks is
    important for environmental quality, Native American communities,
    commercial and recreational fishermen, and the economic vitality of
    the Pacific Northwest.

-   An additional \$59 million, a 26 percent increase, to support
    partnerships with states, non-government organizations, and private
    individuals to conserve and manage wildlife and their habitat.
    Specifically, the Landowner Incentive Program is funded at \$50
    million, an increase of \$20 million or 69 percent, and the Private
    Stewardship Grant program is increased by \$3 million, a 35 percent
    increase, for a total funding of \$10 million. The popular State
    Wildlife and Tribal Grants program is funded at \$80 million, an
    \$11 million increase, or 16 percent, while the successful North
    American Wetlands Conservation Fund is increased by \$16 million, or
    44 percent. The Cooperative Endangered Species Conservation Fund is
    increased by \$8 million, or 10 percent. By helping inspire a nation
    of citizen stewards, cooperative conservation projects advance the
    Administration's vision of healthy lands and thriving communities.

    -   **To provide for a safer, cleaner transportation system, the
        President's budget provides:**

-   An estimate of \$2.1 billion for Congestion Mitigation and Air
    Quality (CMAQ), \$100 million, or 5 percent, above the 2004
    estimated level. The budget estimates \$654 million for
    Transportation Enhancements (TE). These funding levels reflect the
    distribution of funds among highway programs under the second year
    of the Administration's surface transportation reauthorization
    proposal. Funding for CMAQ and TE is proposed to increase annually
    over the remainder of the six-year reauthorization period.

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-   \$7.3 billion for transit, to support Federal Transit
    Administration's capital investment and transit safety programs. The
    proposed level includes \$1.6 billion for major capital projects and
    \$148 million for the President's New Freedom Initiative to assist
    disabled individuals with alternative transportation options as they
    join the workforce.