House Report 115-230 - ENERGY AND WATER DEVELOPMENT APPROPRIATIONS

[House Report 115-230]
[From the U.S. Government Publishing Office]

115th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 115-230

======================================================================

ENERGY AND WATER DEVELOPMENT APPROPRIATIONS

_______

July 17, 2017.--Committed to the Whole House on the State of the Union
and ordered to be printed

_______

Mr. Simpson, from the Committee on Appropriations,
submitted the following

R E P O R T

together with

ADDITIONAL VIEWS

[To accompany H.R. 3266]

The Committee on Appropriations submits the following
report in explanation of the accompanying bill making
appropriations for energy and water development for the fiscal
year ending September 30, 2018, and for other purposes.

INDEX TO BILL AND REPORT

_______________________________________________________________________

Page Number

Bill Report
Introduction...............................................
5
I. Department of Defense--Civil: 2
11
Corps of Engineers--Civil.......................... 2
11
Investigations............................. 2
18
Construction............................... 3
25
Mississippi River and Tributaries.......... 5
31
Operation and Maintenance.................. 5
34
Regulatory Program......................... 7
58
Formerly Utilized Sites Remedial Action
Program................................ 7
59
Flood Control and Coastal Emergencies...... 7
59
Expenses................................... 7
59
Office of the Assistant Secretary of the
Army (Civil Works)..................... 8
60
General Provisions................................. 9
61
II. Department of the Interior: 14
61
Central Utah Project............................... 14
61
Central Utah Project Completion Account.... 14
61
Bureau of Reclamation:............................. 14
62
Water and Related Resources................ 15
63
Central Valley Project Restoration Fund.... 16
73
California Bay-Delta Restoration........... 17
74
Policy and Administration.................. 17
74
General Provisions................................. 18
75
III. Department of Energy: 21
75
Introduction.......................................
75
Committee Recommendations..........................
75
Energy Programs: 21
80
Energy Efficiency and Renewable Energy..... 21
80
Electricity Delivery and Energy Reliability 22
86
Nuclear Energy............................. 22
87
Fossil Energy Research and Development..... 23
88
Naval Petroleum and Oil Shale Reserves..... 23
91
Strategic Petroleum Reserve................ 24
91
Northeast Home Heating Oil Reserve......... 24
92
Energy Information Administration.......... 25
92
Non-Defense Environmental Cleanup.......... 25
92
Uranium Enrichment Decontamination and
Decommissioning Fund................... 25
93
Science.................................... 26
93
Nuclear Waste Disposal..................... 26
97
Title 17 Innovative Technology Loan
Guarantee Program...................... 29
97
Advanced Technology Vehicles Manufacturing
Loan Program........................... 30
98
Tribal Energy Loan Guarantee Program....... 31
98
Departmental Administration................ 31
98
Office of the Inspector General............ 32
100
Atomic Energy Defense Activities: 32
100
National Nuclear Security Administration: 32
101
Weapons Activities......................... 32
101
Defense Nuclear Nonproliferation........... 33
106
Naval Reactors............................. 34
109
Federal Salaries and Expenses.............. 34
109
Environmental and Other Defense Activities: 34
110
Defense Environmental Cleanup.............. 34
110
Other Defense Activities................... 35
112
Defense Nuclear Waste Disposal............. 35
113
Power Marketing Administrations: 36
113
Bonneville Power Administration............ 36
114
Southeastern Power Administration.......... 36
114
Southwestern Power Administration.......... 37
115
Western Area Power Administration.......... 39
115
Falcon and Amistad Operating and
Maintenance Fund....................... 40
115
Federal Energy Regulatory Commission............... 42
116
Committee Recommendation...........................
116
General Provisions................................. 43
150
IV. Independent Agencies: 51
151
Appalachian Regional Commission.................... 51
151
Defense Nuclear Facilities Safety Board............ 51
151
Delta Regional Authority........................... 52
152
Denali Commission.................................. 52
152
Northern Border Regional Commission................ 53
152
Southeast Crescent Regional Commission............. 53
153
Nuclear Regulatory Commission...................... 53
153
Nuclear Waste Technical Review Board............... 56
156
General Provisions................................. 56
156
V. General Provisions 58
156
House of Representatives Report Requirements...............
157
Additional Views...........................................
181

SUMMARY OF ESTIMATES AND RECOMMENDATIONS

The Committee has considered budget estimates, which are
contained in the Budget of the United States Government, Fiscal
Year 2018. The following table summarizes appropriations for
fiscal year 2017, the budget estimates, and amounts recommended
in the bill for fiscal year 2018.

INTRODUCTION

The Energy and Water Development Appropriations bill for
fiscal year 2018 totals $37,562,000,000, $209,000,000 below the
amount appropriated in fiscal year 2017 and $3,240,861,000
above the budget request. Total defense funding is
$20,456,000,000, $500,000,000 above the amount appropriated in
fiscal year 2017 and $139,298,000 below the budget request.
Total non-defense funding is $17,106,000,000, $709,000,000
below the amount appropriated in fiscal year 2017 and
$3,380,159,000 above the budget request.
Title I of the bill provides $6,157,764,000 for the Civil
Works programs of the U.S. Army Corps of Engineers,
$120,000,000 above fiscal year 2017 and $1,155,764,000 above
the budget request. Total funding for activities eligible for
reimbursement from the Harbor Maintenance Trust Fund is
estimated at $1,340,000,000, which is an increase of
$40,000,000 above fiscal year 2017 and $375,000,000 above the
budget request. The bill makes use of all estimated annual
revenues from the Inland Waterways Trust Fund.
Title II provides $1,238,149,000 for the Department of the
Interior and the Bureau of Reclamation, $78,851,000 below
fiscal year 2017 and $131,773,000 above the budget request. The
Committee recommends $1,229,166,000 for the Bureau of
Reclamation, $77,334,000 below fiscal year 2017 and
$131,773,000 above the budget request. The Committee recommends
$8,983,000 for the Central Utah Project, $1,517,000 below
fiscal year 2017 and the same as the budget request.
Title III provides $29,888,401,000 for the Department of
Energy, $857,608,000 below fiscal year 2017 and $2,017,804,000
above the budget request. Funding for the National Nuclear
Security Administration (NNSA), which includes nuclear weapons
activities, defense nuclear nonproliferation, naval reactors,
and federal salaries and expenses, is $13,914,400,000,
$976,148,000 above fiscal year 2017 and $16,600,000 below the
budget request.
Funding for energy programs within the Department of
Energy, which includes basic science research and the applied
energy programs, is $9,609,001,000, $1,674,689,000 below fiscal
year 2017 and $2,098,102,000 above the budget request. The
Committee recommends $5,392,000,000 for the Office of Science,
$1,103,908,000 for Energy Efficiency and Renewable Energy,
$969,000,000 for Nuclear Energy, and $634,600,000 for Fossil
Energy. No funds are provided for the Advanced Research
Projects Agency--Energy.
Environmental management activities--non-defense
environmental cleanup, uranium enrichment decontamination and
decommissioning, and defense environmental cleanup--are funded
at $6,395,400,000, $24,600,000 below fiscal year 2017 and
$112,935,000 below the budget request.
The net amount appropriated for the Power Marketing
Administrations is provided at the requested levels.
Title IV provides $357,062,000 for several Independent
Agencies, $7,835,000 above fiscal year 2017 and $147,520,000
above the budget request. Net funding for the Nuclear
Regulatory Commission is $161,612,000, $49,107,000 above fiscal
year 2017 and $23,580,000 above the budget request.

Overview of the Recommendation

The Committee recommendation prioritizes the most critical
inherently federal responsibilities of this bill: the national
defense, the maintenance of our nation's waterways, and
ensuring the resilience and security of our electricity
infrastructure. Strong support is included for basic science
programs, which provide the foundation for the new energy
technologies that are vital to maintaining our global
competitiveness and ensuring our country's long-term
prosperity, but that are often too high-risk to receive the
attention of the private sector. In contrast, the
recommendation provides limited resources for the applied
energy research and development activities with the greatest
opportunity for private sector backing. The recommendation also
recognizes the importance of the federal government's
responsibility to dispose of nuclear waste and clean up the
legacy of five decades of nuclear weapons production and
government-sponsored nuclear energy research.

National Defense Programs

As in previous years, the Committee considers the national
defense programs run by the National Nuclear Security
Administration (NNSA) to be the Department of Energy's top
priority. The recommendation strongly supports the Department's
proposals to modernize the nuclear weapons stockpile, increase
investment in the NNSA's infrastructure, prevent the
proliferation of nuclear materials, and provide for the needs
of the naval nuclear propulsion program.

Investments in Infrastructure

The water resource infrastructure funded by the
recommendation is a critical component of ensuring a robust
national economy and of supporting American competitiveness in
international markets. The Corps is responsible for keeping our
federal waterways open for business. The Corps also has been
instrumental in reducing the risk of flooding for public
safety, businesses, and much of this country's food-producing
lands. The Bureau of Reclamation supplies reliable water to
approximately ten percent of the country's population and to
much of its fertile agricultural lands. Both agencies make
significant contributions to national electricity production
through hydropower facilities.
The U.S. marine transportation industry supports
$2,000,000,000,000 in commerce and creates employment for more
than 13 million people. As the agency responsible for our
nation's federal waterways, the Corps maintains 1,067 harbors
and 25,000 miles of commercial channels serving 40 states. The
maintenance of these commercial waterways is directly tied to
the ability of this country to ship its manufactured and bulk
products, as well as to compete with the ports of neighboring
countries for the business of ships arriving from around the
world. As a primary supporter of America's waterway
infrastructure, the Corps is ensuring that the nation has the
tools to maintain a competitive edge in the global market. This
recommendation makes key changes to the budget request to
ensure that the Corps has the resources to continue to support
America's shipping infrastructure.
The flood protection infrastructure that the Corps builds
or maintains reduces the risk of flooding to people,
businesses, and other public infrastructure investments. In
fact, the average annual damages prevented by Corps projects
over fiscal years 2007-2016 was $67,600,000,000. Between 1928
and 2016, each inflation-adjusted dollar invested in these
projects prevented $8.91 in damages. The properties and
investments protected by the Corps infrastructure would often
be flooded without that infrastructure, destroying homes,
businesses, and many valuable acres of cropland.
The Bureau of Reclamation's water infrastructure is a
critical component of the agricultural productivity of this
country. These facilities deliver water to one of every five
western farmers resulting in approximately 10 million acres of
irrigated land that produces 60 percent of the nation's
vegetables and 25 percent of its fruits and nuts. Additionally,
these facilities deliver water to more than 31 million people
for municipal, rural, and industrial uses. Without these dams
and water supply facilities, American agricultural producers in
the West would not be able to access reliable, safe water for
their families and their businesses and many municipal and
industrial users would face critical water shortages.
The Corps and Reclamation are the nation's largest and
second largest producers of hydropower, respectively. Combined
these federal hydropower facilities generate approximately 115
billion kilowatt-hours annually. Gross revenues from the sale
of this power reach nearly $6,000,000,000 annually.

National Energy Policy

The Department of Energy and its National Laboratory system
have helped to lay the foundation for the technological
advances driving the energy market today. Production
breakthroughs for every energy generation source can trace
their origins back to research and development supported by the
Department. As the energy market continues to change, the
Department's support for foundational research and development
in all energy sources remains critical. The President's budget
request proposes a shift away from later stage research and
development activities to refocus the Department on an early
stage research and development mission. The Committee is
appreciative of the Department's efforts to focus on early
stage research and development and begins a gradual approach to
achieve this goal.
The Committee provides funding in support of an all of the
above energy strategy designed to take advantage and utilize
all sources of American-made energy. Funding for fossil and
nuclear sources, which provide 84 percent of all electricity
generated in the nation, is targeted to ensure the safe and
efficient use of the nation's critical baseload energy
generation sources. Funding for renewable energy sources, which
provide 15 percent of the nation's electricity, supports
continued investments in research and development to advance
technological innovations. This strategy provides the correct
balance to enable full use of our nation's abundant fossil
resources while laying the foundation for developing future
energy sources.
The success of these innovations depends on a reliable and
resilient electric grid infrastructure. The nation's electric
grid was built to handle a different energy reality than the
one we face today. Weather events, cyberattacks, and an
increasing diversity of energy sources must be addressed to
guarantee the continued operation of the electric grid. The
Committee provides strong support to ensure the nation's
electric grid remains secure.
The Committee continues its long-standing support for the
investment of taxpayer funds across the spectrum of all energy
technologies. A national energy policy can only be successful
if it maintains stability while planning for long-term
strategic goals of energy security, independence, and
prosperity for the nation. The Committee makes strategic
choices, recommending a balanced approach to advancing research
and development in all energy technologies and supporting a
robust electric grid.

CONGRESSIONAL DIRECTION

Program, Project, or Activity.--The term program, project,
or activity shall include the most specific level of budget
items identified in the Energy and Water Development and
Related Agencies Appropriations Act, 2018 and the Committee
report accompanying this Act.
Performance Measures.--The Committee directs each of the
agencies funded by this Act to comply with title 31 of the
United States Code including the development of their
organizational priority goals and outcomes such as performance
outcome measures, output measures, efficiency measures, and
customer service measures.
Offsetting Collections.--The Committee directs each of the
agencies funded by this Act to continue to report any funds
derived by the agency from non-federal sources, including user
charges and fines that are authorized by law, to be retained
and used by the agency or credited as an graphic in annual
budget submissions.
Regional Councils.--The Committee encourages all federal
agencies to consider including regional councils and councils
of government as eligible entities in competitions for federal
funding when local governments or non-profit agencies are
eligible.
Digital Accountability and Transparency Act.--The Committee
supports the requirements of the Digital Accountability and
Transparency Act of 2014 as identified in the budget request.

Committee Oversight Initiatives

The highest priority mission of any federal agency is to be
an effective steward of taxpayer dollars. Any waste, fraud, or
abuse of taxpayer dollars is unacceptable. The Committee uses
hearings, reviews by the Government Accountability Office, the
Committee on Appropriations' Surveys and Investigations staff,
and its annual appropriations Act, including the accompanying
report, to promote strong oversight of the agencies under its
jurisdiction, with an emphasis on the U.S. Army Corps of
Engineers, the Bureau of Reclamation, and the Department of
Energy.
The recommendation continues the Committee's responsibility
to conduct in-depth oversight into all activities funded in
this bill. Each agency shall designate a specific point of
contact to track each report required in the bill and ensure
its timely production and delivery.
A summary of the major oversight efforts in the bill is
provided below:

------------------------------------------------------------------------
Agency/Account Requirement
------------------------------------------------------------------------
Energy and Water.......................... Direction on performance
measures
Army Corps of Engineers................... Direction on projects under
the larger capital program
Army Corps of Engineers................... Direction on Principles and
Guidelines
Army Corps of Engineers................... Guidance on ratings systems
for allocating additional
funds
Army Corps of Engineers................... Direction on 2018 work plan
submission
Army Corps of Engineers................... Direction on new starts
Army Corps of Engineers................... Direction on work related to
Asian Carp
Army Corps of Engineers/Investigations.... Direction on management of
the planning program
Army Corps of Engineers/Investigations.... Guidance on specific studies
Army Corps of Engineers/Investigations.... Guidance on allocating
additional funding
Army Corps of Engineers/Investigations.... Notification requirement for
transfer of certain
facilities
Army Corps of Engineers/Investigations.... Report on SMART planning
Army Corps of Engineers/Construction...... Guidance on allocating
additional funding
Army Corps of Engineers/Construction...... Direction on management of
the Continuing Authorities
Program
Army Corps of Engineers/Mississippi River. Guidance on allocating
additional funding
Army Corps of Engineers/Mississippi River. Direction on Mississippi
River Commission costs
Army Corps of Engineers/Operation and Guidance on allocating
Maintenance. additional funding
Army Corps of Engineers/Operation and Report on section 408
Maintenance. reviews
Army Corps of Engineers/FUSRAP............ Guidance on investigation
and study at former
Sylvania site
Army Corps of Engineers/Expenses.......... Direction on alternative
financing
Army Corps of Engineers/General Provisions Reprogramming requirements
Army Corps of Engineers/General Provisions Restriction on use of
continuing contracts
Army Corps of Engineers/General Provisions Restriction on requiring
permits for the discharge
of dredged or fill material
for certain agricultural
activities
Army Corps of Engineers/General Provisions Authority on revising
federal jurisdiction under
the Clean Water Act
Bureau of Reclamation/Water and Related Direction on Mni Wiconi
Resources. Project
Bureau of Reclamation/Water and Related Guidance on allocating
Resources. additional funding
Bureau of Reclamation/General Provisions.. Reprogramming requirements
Department of Energy...................... Guidance on prior-year
balances
Department of Energy...................... Report on cost audit
coverage
Department of Energy...................... Guidance on ARPA-E
Department of Energy...................... Report on alleviation of
poverty
Department of Energy...................... Direction on workplace
diversity
Department of Energy...................... Direction on Public Access
Plan
Department of Energy...................... Direction on implementing a
cybersecurity plan
Department of Energy...................... Direction on educational
activities
Department of Energy...................... Direction on commonly
recycled paper
Department of Energy/Energy Efficiency.... Report on zero emissions
energy credit
Department of Energy/Energy Efficiency.... Direction on Clean Cities
program
Department of Energy/Energy Efficiency.... Report on waste-to-energy
research and development
activities
Department of Energy/Fossil............... Direction on NETL budget
accounts restructuring
Department of Energy/Fossil............... Direction on coal research
and development
Department of Energy/Fossil............... Direction on crude oil by
rail
Department of Energy/Fossil............... Direction on NETL sites
Department of Energy/Non-Defense Cleanup.. Report on Oak Ridge
activities
Department of Energy/UED&D................ Report on uranium transfers
Department of Energy/Science.............. Report on solar fuels
research initiative
strategic plan
Department of Energy/Science.............. Report on exascale
deployment plan
Department of Energy/Nuclear/Waste Direction on Yucca Mountain
Disposal. licensing process
Department of Energy/Departmental Direction on renewable fuel
Administration. standards
Department of Energy/Weapons.............. Direction on nuclear
modernization affordability
Department of Energy/Weapons.............. Plan to reduce overhead
costs of NNSA sites
Department of Energy/Weapons.............. Report on W80-4 alternatives
Department of Energy/Weapons.............. Report on milestones for
ignition
Department of Energy/Weapons.............. Direction on footpring
reduction of Albuquerque
Complex
Department of Energy/Weapons.............. Report on vacating legacy
plutonium facilities
Department of Energy/Weapons.............. Reporting on WEPAR project
Department of Energy/Nonproliferation..... Guidance on new
nonproliferation projects
in Russia
Department of Energy/Nonproliferation..... Report on commercial nuclear
fuel reprocessing
Department of Energy/Nonproliferation..... Report on transfer of EM
nuclear material management
facilities
Department of Energy/Nonproliferation..... Prohibition on use of MOX
funds
Department of Energy/Nonproliferation..... Guidance on consideration of
MOX alternative
Department of Energy/Nonproliferation..... Report on removal of
plutonium from South
Carolina
Department of Energy/Defense Cleanup...... Establishment of new budget
control points
Department of Energy/Defense Cleanup...... Direction on budgeting for
the Waste Treatment Plant
Department of Energy/Defense Cleanup...... Report on national
transuranic waste
processing center
Department of Energy/Defense Cleanup...... Report on Office of River
Protection site office
Department of Energy/Defense Cleanup...... Report on WIPP ground
control metrics
Department of Energy/Defense Cleanup...... Guidance on headquarters
planning and budgeting
systems
Department of Energy/Other Defense Direction on consolidation
Activities. of safety and security
costs
Department of Energy/Power Marketing Direction on provision of
Administrations. information
Department of Energy/General Provisions... Reprogramming requirements
Department of Energy/General Provisions... Requirement for oversight of
high hazard nuclear
facilities construction
Department of Energy/General Provisions... Prohibition on funds without
independent cost estimates
Department of Energy/General Provisions... Restriction of certain
activities in the Russian
Federation
Department of Energy/General Provisions... Requirements for releases
from Strategic Petroleum
Reserve
Department of Energy/General Provisions... Guidance on Strategic
Petroleum Reserve
activities
Nuclear Regulatory Commission............. Establishment reprogramming
control points
Nuclear Regulatory Commission............. Guidance on reporting of
salaries and expenses
Nuclear Regulatory Commission............. Report on agency structure
and manning
Nuclear Regulatory Commission............. Report on use of risk
assessment tools
Nuclear Regulatory Commission............. Direction on rulemaking
process and activities
Nuclear Regulatory Commission............. Guidance on transition to
digital systems
Nuclear Regulatory Commission............. Direction on preparation for
license renewal
applications
Nuclear Regulatory Commission............. Report on licensing goals
and right-sizing
commitments
Independent Agencies/General Provisions... Requirement for NRC to
comply with Congressional
requests
Independent Agencies/General Provisions... Reprogramming requirements
for the NRC
General Provisions........................ Prohibition on funds to
influence congressional
action
General Provisions........................ Consolidation of transfer
authorities
General Provisions........................ Prohibition of funds in
contravention of Executive
Order 12898
General Provisions........................ Prohibition of funds for
computer networks that
don't block
General Provisions........................ Prohibition of funds to
further implement EO 13547
General Provisions........................ Prohibition of funds to
remove or close federally
owned or operated
General Provisions........................ Prohibition of funds to
close Yucca Mountain
application
------------------------------------------------------------------------

TITLE I--CORPS OF ENGINEERS--CIVIL

DEPARTMENT OF THE ARMY

Corps of Engineers--Civil

INTRODUCTION

The Energy and Water Development Appropriations Act funds
the Civil Works missions of the Army Corps of Engineers
(Corps). This program is responsible for activities in support
of coastal and inland navigation, flood and coastal storm
damage reduction, environmental protection and restoration,
hydropower, recreation, water supply, and disaster preparedness
and response. The Corps also performs regulatory oversight of
navigable waters. Approximately 22,000 civilians and almost 300
military personnel located in eight Division offices and 38
District offices work to carry out the Civil Works program.

DEEP-DRAFT NAVIGATION

The Committee remains mindful of the evolving
infrastructure needs of the nation's ports. Meeting these
needs--including deeper drafts to accommodate the move towards
larger ships--will be essential if the nation is to remain
competitive in international markets and to continue advancing
economic development and job creation domestically.
Investigations and construction of port projects, including
the deepening of existing projects, are cost shared between the
federal government and non-federal sponsors, often local or
regional port authorities. The operation and maintenance of
these projects are federal responsibilities and are funded as
reimbursements from the Harbor Maintenance Trust Fund (HMTF),
which is supported by an ad valorem tax on the value of
imported and domestic cargo. Expenditures from the trust fund
are subject to annual appropriations. The balance in the HMTF
at the beginning of fiscal year 2018 is estimated to be
approximately $9,000,000,000.
The Water Resources Reform and Development Act (WRRDA) of
2014 included target annual appropriations levels for use of
HMTF receipts and the Water Resources Development Act (WRDA) of
2016 amended those levels. The Committee remains committed to
providing the maximum practicable amount of funding for HMTF-
reimbursable activities consistent with annual allocations and
after evaluating funding requirements for other priority
activities within the Civil Works program.
For fiscal year 2018, the Committee provides an estimated
$1,340,000,000 for HMTF-related activities, $40,000,000 more
than fiscal year 2017, $375,000,000 above the budget request,
and the same as the annual target. This funding should allow
the Corps to make significant progress on the backlog of
dredging needs.

INLAND WATERWAYS SYSTEM

The nation's inland waterways system--consisting of
approximately 12,000 miles of commercially navigable channels
and 239 lock chambers--also is essential to supporting the
national economy. Freight transported on the inland waterways
system includes a significant portion of the nation's grain
exports, domestic petroleum and petroleum products, and coal
used in electricity generation. Much of the physical
infrastructure of the system is aging, however, and in need of
improvements. For example, commercial navigation locks
typically have a design life of 50 years, yet nearly 60 percent
of these locks in the United States are more than 50 years old,
with the average age at almost 60 years old.
Capital improvements to the inland waterways system
generally are funded 50 percent from the General Treasury and
50 percent from the Inland Waterways Trust Fund (IWTF), while
operation and maintenance costs are funded 100 percent from the
General Treasury. The IWTF is supported by a tax on barge fuel.
In recent years, the increasing rehabilitation and
reconstruction needs and the escalating costs of those projects
have far outstripped available revenues in the IWTF. Two
statutory changes enacted in fiscal year 2015, however, will
lead to the availability of additional revenues to stand as the
required cost share for some additional work on the inland
waterways system. These changes were the reduction in the
portion of the costs of the Olmsted Locks and Dam project that
is to be derived from the IWTF to 15 percent and the increase
in the fuel tax to $0.29 per gallon from $0.20 per gallon.
The Corps is directed to take the preparatory steps
necessary to ensure that new construction projects can be
initiated as soon as can be supported under the larger capital
program (i.e., as ongoing projects approach completion). For
fiscal year 2018, the Committee provides appropriations making
use of all estimated annual revenues from the IWTF. The final
program level will depend on project-specific allocations to be
made by the Corps, but will be at least $332,500,000. The
Committee also allocates $25,000,000 above the budget request
for additional operation and maintenance activities on the
inland waterways.

PRINCIPLES AND REQUIREMENTS

Concerns persist that the effort to update the Water
Resources Principles and Guidelines did not proceed consistent
with the language or intent of section 2031 of the Water
Resources Development Act of 2007. No funds provided to the
Corps of Engineers shall be used to develop or implement rules
or guidance to support implementation of the final Principles
and Requirements for Federal Investments in Water Resources
released in March 2013 or the final Interagency Guidelines
released in December 2014. The Corps shall continue to use the
document dated March 10, 1983, and entitled ``Economic and
Environmental Principles and Guidelines for Water and Related
Land Resources Implementation Studies'' during the fiscal year
period covered by the Energy and Water Development
Appropriations Act for 2018.

FIVE-YEAR COMPREHENSIVE PLANNING

Historically, the Committee has encouraged the
Administration to provide five-year investment plans for all
the agencies within the Energy and Water Development
jurisdiction, particularly the Corps. The five-year plan should
be based on realistic assumptions of project funding needs. It
is the Committee's expectation that once projects have been
initiated, the Administration will request responsible annual
funding levels for them through completion.
The executive branch has traditionally been unwilling to
project five-year horizons for projects it has not previously
supported through the budget process. Comprehensive planning is
important for understanding future requirements of projects
that have been supported through the appropriations process, as
well. While this unwillingness to have a dialogue regarding
additional investment might be reasonable under circumstances
where there is no likelihood of increased resources, the
Congress consistently has supported additional investment in
the nation's water resource infrastructure. The uncertainty
caused by year-to-year federal planning leaves too many non-
federal sponsors unable to make informed decisions regarding
local funding.
It would be beneficial for the Congress, the
Administration, and project partners to have a comprehensive
plan to outline requirements for all projects that have
received an appropriation to date or are proposed to begin
receiving funding this year. The Committee welcomes a dialogue
with the new Administration to reach a mutually agreeable way
to comprehensively plan for all initiated projects.

FORMAT OF FUNDING PRIORITIES

Traditionally, the President requested and the Congress
appropriated funds for the Civil Works program on a project-
level basis. Taken together, however, these funding decisions
indicated programmatic priorities and policy preferences. As
with non-project-based programs, the Congress at times
disagreed with the priorities stated in the President's budget
request and made its priorities known in appropriations bills.
Final federal government priorities were established in Acts
passed by both chambers of the Congress and signed by the
President.
Since the 112th Congress, congressional earmarks, as
defined in House rule XXI, have been prohibited. That
definition encompasses project-level funding not requested by
the President. As a result, the Committee reviewed the
historical format of appropriations for the Corps to see if
there was a more transparent way to highlight programmatic
priorities without abandoning congressional oversight
responsibilities. The fiscal year 2012 Act included a
modification to the format used in previous years, and that
format is continued for fiscal year 2018. As in previous years,
the Committee lists in report tables the studies, projects, and
activities within each account requested by the President along
with the Committee-recommended funding level. To advance its
programmatic priorities, the Committee has included additional
funding for certain categories of projects. Project-specific
allocations within these categories will be determined by the
Corps based on further direction provided in this report.

ADDITIONAL FUNDING

Although it represents the highest level of funding
requested since fiscal year 2010, the fiscal year 2018 budget
request underfunds the Civil Works program of the Corps of
Engineers. The recommendation, however, includes funding in
addition to the budget request to ensure continued improvements
to our national economy, public safety, and environmental
health that result from water resources projects. This funding
is for additional work that either was not included in the
budget request or was inadequately budgeted.
The Corps again is directed to develop ratings systems for
use in evaluating studies and projects for allocation of the
additional funding provided in this title. These evaluation
systems may be, but are not required to be, individualized for
each account, category, or subcategory. Voluntary funding in
excess of legally required cost shares for studies and projects
is acceptable, but shall not be used as a criterion for
allocating the additional funding provided in this bill or for
the selection of new starts. Each study and project eligible
for funding shall be evaluated under the applicable ratings
system. A study or project may not be excluded from evaluation
for being ``inconsistent with Administration policy.'' The
Corps retains complete control over the methodology of these
ratings systems. The executive branch retains complete
discretion over project-specific allocation decisions within
the additional funds provided, subject to only the direction
here and under the heading ``Additional Funding'' or
``Additional Funding for Ongoing Work'' within each of the
Investigations, Construction, Mississippi River and
Tributaries, and Operation and Maintenance accounts.
The Administration is reminded that these funds are in
addition to the budget request, and Administration budget
metrics shall not be a reason to disqualify a study or project
from being funded. It is expected that all of the additional
funding provided will be allocated to specific programs,
projects, or activities. The focus of the allocation process
shall favor the obligation, rather than expenditure, of funds.
With the significant backlog of work in the Corps' inventory,
there is no reason for funds provided above the budget request
to remain unallocated.
A project or study shall be eligible for additional funding
within the Investigations, Construction, and Mississippi River
and Tributaries accounts if: (1) it has received funding, other
than through a reprogramming, in at least one of the previous
three fiscal years; (2) it was previously funded and could
reach a significant milestone, complete a discrete element of
work, or produce significant outputs in fiscal year 2018; or
(3) as appropriate, it is selected as one of the new starts
allowed in accordance with this Act and the additional
direction provided below. Projects with executed Advanced
Project Partnership Agreements, or similar agreements, shall be
eligible for additional funding provided in this bill. None of
the additional funding in any account may be used for any item
where funding was specifically denied or for projects in the
Continuing Authorities Program. Funds shall be allocated
consistent with statutory cost share requirements.
Funding associated with each category may be allocated to
any eligible study or project, as appropriate, within that
category; funding associated with each subcategory may be
allocated only to eligible studies or projects, as appropriate,
within that subcategory. The list of subcategories is not meant
to be exhaustive.
The Committee is concerned that the fiscal year 2017 work
plan allocated Operation and Maintenance funding to some
activities historically funded in the Construction account. Any
shift in funding between accounts should be proposed in a
budget request and addressed through the appropriations
process. The Committee develops funding levels for accounts and
additional funding categories based on its assessment of the
scope of activities that can be advanced within each account
and category. Shifting activities between accounts or
categories after these funding level decisions are made is a
gross misuse of the flexibility inherent in the work plan
process. For fiscal year 2018, the Corps shall evaluate all
studies and projects only within accounts and categories
consistent with previous congressional funding.
Work Plan.--Not later than 60 days after the enactment of
this Act, the Corps shall provide to the Committees on
Appropriations of both Houses of Congress a work plan including
the following information: (1) a detailed description of the
ratings system(s) developed and used to evaluate studies and
projects; (2) delineation of how these funds are to be
allocated; (3) a summary of the work to be accomplished with
each allocation, including phase of work; and (4) a list of all
studies and projects that were considered eligible for funding
but did not receive funding, including an explanation of
whether the study or project could have used funds in fiscal
year 2018 and the specific reasons each study or project was
considered as being less competitive for an allocation of
funds.
New Starts.--The recommendation includes six new study
starts and up to two new construction starts to be distributed
across the three main mission areas of the Corps. Of the new
study starts, one shall be for a navigation study, one shall be
for a flood and storm damage reduction study, three shall be
for additional navigation or flood and storm damage reduction
studies, and one shall be for an environmental restoration
study. The new construction starts shall be for navigation,
flood and storm damage reduction, or environmental restoration
projects. No funding shall be used to initiate new studies,
programs, projects, or activities in the Mississippi River and
Tributaries or Operation and Maintenance accounts.
The Corps is directed to propose a single group of new
starts as a part of the work plan. The Corps may not change or
substitute the new starts selected once the work plan has been
provided to the Committees on Appropriations of both Houses of
Congress. Each new start shall be funded from the appropriate
additional funding line item. Any project for which the new
start requirements are not met by the end of fiscal year 2018
shall be treated as if the project had not been selected as a
new start; such a project shall be required to compete again
for new start funding in future years. As all new starts are to
be chosen by the Corps, all shall be considered of equal
importance, and the expectation is that future budget
submissions will include appropriate funding for all new starts
selected.
There continues to be confusion regarding the executive
branch's policies and guidelines regarding which studies and
projects require new start designations. Therefore, the Corps
is directed to notify the Committees on Appropriations of both
Houses of Congress at least 7 days prior to the execution of an
agreement for construction of any project except environmental
infrastructure projects and projects under the Continuing
Authorities Program. Additionally, the recommendation
reiterates and clarifies previous congressional direction as
follows. Neither study nor construction activities related to
individual projects authorized under section 1037 of the Water
Resources Reform and Development Act (WRRDA) of 2014 shall
require a new start or new investment decision; these
activities shall be considered ongoing work. No new start or
new investment decision shall be required when moving from
feasibility to preconstruction engineering and design (PED). A
new start designation shall be required to initiate
construction of individually-authorized projects funded within
programmatic line items. No new start or new investment
decision shall be required to initiate work on a separable
element of a project when construction of one or more separable
elements of that project was initiated previously; it shall be
considered ongoing work. A new construction start shall not be
required for work undertaken to correct a design deficiency on
an existing federal project; it shall be considered ongoing
work.
In addition to the priority factors used to allocate all
additional funding provided in the Investigations account, the
Corps should give careful consideration to the out-year budget
impacts of the studies selected and to whether there appears to
be an identifiable local sponsor that will be ready and able to
provide, in a timely manner, the necessary cost share for the
feasibility and PED phases. The Corps is reminded that the
flood and storm damage reduction mission area can include
instances where non-federal sponsors are seeking assistance
with flood control and unauthorized discharges from permitted
wastewater treatment facilities and that the navigation mission
area includes work in remote and subsistence harbor areas.
In addition to the priority factors used to allocate all
additional funding provided in the Construction account, the
Corps also shall consider the out-year budget impacts of the
selected new starts; legal requirements, including
responsibilities to Tribes; and the cost sharing sponsor's
ability and willingness to promptly provide the cash
contribution (if any), as well as required lands, easements,
rights-of-way, relocations, and disposal areas. When
considering new construction starts, only those that can
execute a project cost sharing agreement not later than August
31, 2018, shall be selected.
To ensure that the new construction starts are affordable
and will not unduly delay completion of any ongoing projects,
the Secretary is required to submit to the Committees on
Appropriations of both Houses of Congress a realistic out-year
budget scenario prior to issuing a work allowance for a new
start. It is understood that specific budget decisions are made
on an annual basis and that this scenario is neither a request
for nor a guarantee of future funding for any project.
Nonetheless, this scenario shall include an estimate of annual
funding for each new start utilizing a realistic funding
scenario through completion of the project, as well as the
specific impacts of that estimated funding on the ability of
the Corps to make continued progress on each previously funded
construction project (including impacts to the optimum timeline
and funding requirements of the ongoing projects) and on the
ability to consider initiating new projects in the future. The
scenario shall assume a Construction account funding level at
the average of the past three budget requests.

ASIAN CARP

The recommendation funds the request for the existing
electric barriers in the Chicago Area Waterway System. The
Corps is directed to analyze the most recent information
regarding the presence of Asian Carp in close proximity to Lake
Michigan and any other Great Lake to determine if any emergency
or additional actions are warranted, including increasing the
existing barriers' efficiency and efficacy. The Corps shall
complete this analysis not later than 45 days after the
enactment of this Act. Upon completion of this analysis, the
Corps shall report to the Committees on Appropriations of both
Houses of Congress on the conclusions, including whether any
additional authorization is required. Additionally, the Corps
is encouraged to consult with the U.S. Fish and Wildlife
Service, the U.S. Coast Guard, the State of Illinois, and other
members of the Asian Carp Regional Coordinating Committee to
evaluate whether navigation protocols would be beneficial or
effective in reducing the risk of vessels inadvertently
transporting aquatic nuisance species, including Asian Carp,
through the Electric Dispersal Barrier near Romeoville,
Illinois, and locks and dams in the Illinois River.
The Corps is expected to release the draft Great Lakes and
Mississippi River Interbasin Study (GLMRIS) Brandon Road Study
consistent with the urgency of its previous actions. The Corps
shall adhere to a public and agency review process that is open
and transparent. The Corps is directed to provide to the
Committees on Appropriations of both Houses of Congress semi-
annual updates on the progress and status of efforts to prevent
the further spread of the carp as well as the location and
density of Asian Carp populations. The Corps is further
directed to work with other appropriate federal entities to
develop and submit to the Committees as soon as practicable a
concise report with graphics and maps detailing the geographic
migration of Asian Carp up the Mississippi River from 2000 to
the present.

AGING WATERWAY INFRASTRUCTURE

The Committee recognizes the extraordinary implications to
the local, regional, and national economy, as well as national
security due to aging waterway infrastructure. The Committee
urges the Corps to complete feasibility studies for ongoing
deep draft lock modernization or replacement projects. In these
studies, the Corps is encouraged to include national and
regional economic analyses, taking into account the unique
movement of the commodities and the value-added in the supply
chain.

CONGRESSIONAL DIRECTION AND REPROGRAMMING

To ensure that the expenditure of funds in fiscal year 2018
is consistent with congressional direction, to minimize the
movement of funds, and to improve overall budget execution, the
bill carries a legislative provision outlining the
circumstances under which the Corps may reprogram funds.

COMMITTEE RECOMMENDATION

The Committee recommends $6,157,764,000 for the Corps,
$120,000,000 above fiscal year 2017 and $1,155,764,000 above
the budget request.
A table summarizing the fiscal year 2017 enacted
appropriation, the fiscal year 2018 budget request, and the
Committee-recommended levels is provided below:

(Dollars in thousands)
----------------------------------------------------------------------------------------------------------------
FY 2017 FY 2018
Account enacted request Cmte. rec.
----------------------------------------------------------------------------------------------------------------
Investigations.................................................. $121,000 $86,000 $105,000
Construction.................................................... 1,876,000 1,020,000 1,697,000
Mississippi River and tributaries............................... 362,000 253,000 301,000
Operation and maintenance....................................... 3,149,000 3,100,000 3,519,000
Regulatory program.............................................. 200,000 200,000 200,000
FUSRAP.......................................................... 112,000 118,000 118,000
Flood control and coastal emergencies........................... 32,000 35,000 32,000
Expenses........................................................ 181,000 185,000 181,000
Office of the Assistant Secretary of the Army for Civil Works... 4,764 5,000 4,764
-----------------------------------------------
Total, Corps of Engineers--Civil............................ 6,037,764 5,002,000 6,157,764
----------------------------------------------------------------------------------------------------------------

INVESTIGATIONS

Appropriation, 2017................................... $121,000,000
Budget estimate, 2018................................. 86,000,000
Recommended, 2018..................................... 105,000,000
Comparison:
Appropriation, 2017............................... -16,000,000
Budget estimate, 2018............................. +19,000,000

This appropriation funds studies to determine the need for,
the engineering and economic feasibility of, and the
environmental and social suitability of solutions to water and
related land resource problems; preconstruction engineering and
design; data collection; interagency coordination; and
research.
The past several budget requests have proposed significant
reductions in funding within the Investigations account, with
particularly steep reductions in the amount of work to be done
on individual feasibility studies and preconstruction
engineering and design projects. The Committee is concerned
that the Corps has not adequately planned for any changes that
may be necessary as a result. The Corps is directed to develop
a comprehensive plan for managing an efficient planning program
designed to maintain core planning competencies. The Corps
shall be prepared to brief the Committees on Appropriations of
both Houses of Congress not later than 180 days after the
enactment of this Act on the final plan.
The budget request for this account and the approved
Committee allowance are shown on the following table:

Mid-Chesapeake Bay Island Project (James and Barren
Islands), Maryland.--The Committee understands that the Corps
must complete and approve its Baltimore Harbor and Channels
Dredged Material Management Plan Update prior to budgeting for
the Mid-Chesapeake Bay Island Project (James and Barren
Islands). The Corps is encouraged to complete the Plan Update
expeditiously.
Passaic River Basin Mainstem, New Jersey.--The Committee is
aware that flooding has long been a problem in the Passaic
River Basin. The Committee encourages the Corps to continue to
work in coordination with the non-federal sponsor on plans to
reduce flooding in the basin, including the reevaluation of the
Passaic River Basin Mainstem project. The Corps is directed to
brief the Committee not later than 30 days after the enactment
of this Act on the current status of this project.
Peckman River, New Jersey.--The Committee is aware of
repeated delays with the Peckman River Feasibility Study. The
Corps is directed to provide to the Committee quarterly
briefings on the current schedule to bring this study to
completion, with the first briefing to occur not later than 30
days after the enactment of this Act.
Chacon Creek, Texas.--The Corps has multiple authorities to
provide technical assistance to non-federal entities. The
Committee encourages the Corps to review these authorities to
identify opportunities to help advance the Chacon Creek, Texas,
study, for which the Corps executed a feasibility cost sharing
agreement in 2004.
Additional Funding.--The Corps is expected to allocate the
additional funding provided in this account primarily to
specific feasibility and PED phases, rather than to Remaining
Items line items as had been the case in previous work plans.
The activities funded under Remaining Items address core agency
competencies, which means the budget request should reflect
sufficient funding. When allocating the additional funding
provided in this account, the Corps shall consider giving
priority to completing or accelerating ongoing studies or to
initiating new studies that will enhance the nation's economic
development, job growth, and international competitiveness; are
for projects located in areas that have suffered recent natural
disasters; are for projects that protect life and property; or
are for projects to address legal requirements. The Corps shall
use these funds for additional work in both the feasibility and
PED phases. The recommendation includes sufficient additional
funding to undertake a significant amount of feasibility and
PED work. The Administration is reminded that a project study
is not complete until the PED phase is complete.
Research and Development.--Within the funding provided, the
Corps is encouraged to advance work to evaluate conservation
methods to restore riverine ecosystems and to expand
environmental monitoring and modeling.
Research and Development, Partnerships.--The Corps is an
instrumental partner in controlling aquatic nuisance species in
our nation's waterways, including the Columbia River Basin with
twelve listed salmon and steelhead species and more than
$3,000,000,000 of goods transported for delivery around the
world. The Committee recognizes the economic and environmental
benefits of the Columbia River Basin and urges the Corps to
utilize local and regional research partners, as appropriate,
to address this serious issue.
Disposition of Completed Projects.--The Corps shall notify
the Committees on Appropriations of both Houses of Congress not
less than 7 days prior to execution of a transfer of any Corps
facilities that closed as a result of Public Law 113-121.
Water Resources Priorities Study.--No funding shall be used
for this study.
Impacts on Oyster Reefs.--The Committee supports Corps
efforts, when conducting or reviewing environmental assessments
or environmental impact statements for navigation or coastal
restoration projects in areas where oyster reefs exist, to
consider water quality and salinity impacts on those reefs and,
when appropriate, to mitigate any negative impacts.
Levee Improvements.--Where Corps-owned levees are
hydraulically tied to community-owned levees, particularly
where FEMA levee accreditation is a concern, the Corps is
encouraged to cooperate with non-federal sponsors on ways to
implement necessary improvements to the federal project.
Flood Control and Wastewater Treatment Facilities.--In
fiscal year 2017, the Corps was directed to provide a briefing
regarding activities to address concerns about flooding and
wastewater treatment facilities. The Committee may have
additional direction after that briefing occurs.
SMART Planning.--The Committee has heard concerns that the
Corps is not adequately adhering to its three-year SMART
planning criteria. These criteria were established to ensure
the Corps was completing feasibility studies in a timely
manner. Not later than 120 days after the enactment of this
Act, the Corps shall provide to the Committees on
Appropriations of both Houses of Congress a report outlining
the status of all studies subject to the three-year SMART
planning criteria. The report shall include, for any studies
the Corps does not expect to complete within three years, a
plan for completing the study or an explanation of why the
study should not be considered under the three-year SMART
planning criteria, as well as an accounting of non-federal
funds expended to date.
Value of Agricultural Land.--The Committee has heard
concerns that the Corps is not accurately estimating the total
cost of potential damages when calculating a project's benefit-
cost ratio. While health and safety are vital to these
calculations, the Corps has statutory authority to include
other economic factors. Some non-federal sponsors believe the
Corps has undervalued agricultural land by failing to account
for the value of future crops that cannot be harvested and
environmental mitigation practices that prevent food safety
issues following contamination by floodwaters, particularly
with respect to high value fruits and vegetables that are often
sold directly to consumers or to organic production, which
relies on producers meeting various environmental standards.

CONSTRUCTION

Appropriation, 2017................................... $1,876,000,000
Budget estimate, 2018................................. 1,020,000,000
Recommended, 2018..................................... 1,697,000,000
Comparison:
Appropriation, 2017............................... -179,000,000
Budget estimate, 2018............................. +677,000,000

This appropriation funds construction, major
rehabilitation, and related activities for water resource
projects whose principal purpose is to provide commercial
navigation, flood and storm damage reduction, or aquatic
ecosystem restoration benefits to the nation. Portions of this
account are funded from the Harbor Maintenance Trust Fund and
the Inland Waterways Trust Fund.
The budget request for this account and the approved
Committee allowance are shown on the following table:

Success Dam, California.--In fiscal years 2016 and 2017,
the Committee raised the importance of the Corps moving
expeditiously on this project to increase the reservoir
capacity and complete the necessary safety reviews of the dam.
Final resolution of the safety status of the dam is required in
order for the reservoir to be enlarged. The Committee is aware
that the Senior Oversight Group review of the dam safety
analysis is scheduled for March 2018. The Committee strongly
urges the Corps to complete the safety assessment of the dam by
this time as detailed in House Report 114-532 and continue to
expeditiously move ahead with the enlargement project, as
detailed in House Report 114-91.
Chesapeake Bay Oyster Recovery, Maryland and Virginia.--The
Committee urges the Corps to consider species selection for
disease resistance and survivability as part of oyster recovery
in the Chesapeake Bay and to support development of substrate
as a substitute for oyster shell, including competitively
awarded contracts for research and development, as appropriate.
New Jersey and New York Harbor Deepening Project.--The
Committee is encouraged by the work of the Corps and its local
partners to bring the construction of the New Jersey and New
York Harbor Deepening Project to completion. This project of
national significance is an example of how the Corps and its
partners can work together to enhance our national economy.
Cano Martin Pena, Puerto Rico.--The Committee notes the
progress achieved in recent years to advance the Cano Martin
Pena environmental restoration project in San Juan, Puerto
Rico. A recent report indicated that this project can provide a
significant return on investment in terms of improving the
economy, protecting public health, and restoring the natural
environment in Puerto Rico. The Corps is encouraged to include
appropriate funding in future budget requests.
Additional Funding.--The recommendation includes additional
funds for projects and activities to enhance the nation's
economic growth and international competitiveness. Of the
additional funds provided in this account, the Corps shall
allocate not less than $12,450,000 to projects with riverfront
development components. Of the additional funding provided in
this account for flood and storm damage reduction and flood
control, the Corps shall allocate not less than $18,000,000 to
additional nonstructural flood control projects. Of the
additional funds provided in this account for flood and storm
damage reduction, navigation, and other authorized project
purposes, the Corps shall allocate not less than $10,000,000 to
authorized reimbursements for projects with executed project
cooperation agreements and that have completed construction or
where non-federal sponsors intend to use the funds for
additional water resources development activities. Of the
additional funding provided in this account for flood and storm
damage reduction and flood control, the Corps shall allocate
not less than $13,900,000 to continue construction of projects
that principally include improvements to rainfall drainage
systems that address flood damages. The Corps is reminded that
dam safety projects authorized under section 5003 of the Water
Resources Development Act of 2007 are eligible to compete for
the additional funding provided in this account.
When allocating the additional funding provided in this
account, the Corps is encouraged to evaluate authorized
reimbursements in the same manner as if the projects were being
evaluated for new or ongoing construction and shall consider
giving priority to the following:
1. benefits of the funded work to the national
economy;
2. extent to which the work will enhance national,
regional, or local economic development;
3. number of jobs created directly by the funded
activity;
4. ability to obligate the funds allocated within the
fiscal year, including consideration of the ability of
the non-federal sponsor to provide any required cost
share;
5. ability to complete the project, separable
element, or project phase with the funds allocated;
6. for flood and storm damage reduction projects
(including authorized nonstructural measures and
periodic beach renourishments),
a. population, economic activity, or public
infrastructure at risk, as appropriate; and
b. the severity of risk of flooding or the
frequency with which an area has experienced
flooding;
7. for shore protection projects, projects in areas
that have suffered severe beach erosion requiring
additional sand placement outside of the normal beach
renourishment cycle or in which the normal beach
renourishment cycle has been delayed;
8. for navigation projects, the number of jobs or
level of economic activity to be supported by
completion of the project, separable element, or
project phase;
9. for projects cost shared with the Inland Waterways
Trust Fund (IWTF), the economic impact on the local,
regional, and national economy if the project is not
funded, as well as discrete elements of work that can
be completed within the funding provided in this line
item;
10. for other authorized project purposes and
environmental restoration or compliance projects, to
include the beneficial use of dredged material; and
11. for environmental infrastructure, projects with
the greater economic impact, projects in rural
communities, projects in communities with significant
shoreline and instances of runoff, projects in or that
benefit counties or parishes with high poverty rates,
and projects in financially distressed municipalities.
The recommendation provides funds making use of all
estimated annual revenues in the IWTF. The Corps shall allocate
all funds provided in the IWTF Revenues line item along with
the statutory cost share from funds provided in the Navigation
line item prior to allocating the remainder of funds in the
Navigation line item.
Aquatic Plant Control Program.--Funding is provided for
watercraft inspection stations, as authorized by section 1039
of the Water Resources Reform and Development Act of 2014, and
related monitoring.
Continuing Authorities Program (CAP).--The Committee
continues to support all sections of the Continuing Authorities
Program. Funding is provided for eight CAP sections at a total
of $27,000,000, an increase of $18,000,000 above the budget
request, which proposed funding for only four sections. This
program provides a useful tool for the Corps to undertake small
localized projects without the lengthy study and authorization
process typical of larger Corps projects. Within the Continuing
Authorities Program and to the extent authorized by section
1150 of the WIIN Act, the Corps is encouraged to consider
projects in regions comprised of cities whose historic flooding
has been caused predominantly by winter snowmelt and ice floes.
The management of the Continuing Authorities Program should
continue consistent with direction provided in previous fiscal
years.
Energy Ports.--The Committee recognizes that increases in
domestic energy production and the repeal of the oil export ban
have resulted in increased maritime transport of energy
commodities. The Corps is encouraged to consider these
developments and national energy priorities in supporting
authorized projects at energy transfer ports.

MISSISSIPPI RIVER AND TRIBUTARIES

Appropriation, 2017................................... $362,000,000
Budget estimate, 2018................................. 253,000,000
Recommended, 2018..................................... 301,000,000
Comparison:
Appropriation, 2017............................... -61,000,000
Budget estimate, 2018............................. +48,000,000

This appropriation funds planning, construction, and
operation and maintenance activities associated with projects
to reduce flood damage in the lower Mississippi River alluvial
valley below Cape Girardeau, Missouri.
The budget request for this account and the approved
Committee allowance are shown on the following table:

Lower Mississippi River Main Stem.--The budget request
proposes to consolidate several activities across multiple
states into one line item. The Committee does not support this
change and instead continues to fund these activities as
separate line items.
Additional Funding for Ongoing Work.--When allocating the
additional funding provided in this account, the Corps shall
consider giving priority to completing or accelerating ongoing
work that will enhance the nation's economic development, job
growth, and international competitiveness, or are for studies
or projects located in areas that have suffered recent natural
disasters. While this funding is shown under remaining items,
the Corps shall use these funds in investigations,
construction, and operation and maintenance, as applicable.
Mississippi River Commission.--No funding is provided for
this new line item. The Corps is directed to continue funding
the costs of the commission from within the funds provided for
activities within the Mississippi River and Tributaries
project.

OPERATION AND MAINTENANCE

Appropriation, 2017................................... $3,149,000,000
Budget estimate, 2018................................. 3,100,000,000
Recommended, 2018..................................... 3,519,000,000
Comparison:
Appropriation, 2017............................... +370,000,000
Budget estimate, 2018............................. +419,000,000

This appropriation funds operation, maintenance, and
related activities at water resource projects the Corps
operates and maintains. Work to be accomplished consists of
dredging, repair, and operation of structures and other
facilities as authorized in various River and Harbor, Flood
Control, and Water Resources Development Acts. Related
activities include aquatic plant control, monitoring of
completed projects, removal of sunken vessels, and the
collection of domestic, waterborne commerce statistics.
Portions of this account are financed through the Harbor
Maintenance Trust Fund.
The budget request for this account and the approved
Committee allowance are shown on the following table:

Los Angeles County Drainage Area, California.--The
Committee directs the Corps to evaluate methods where the Los
Angeles County Flood Control District might assume a greater
role in the operation and maintenance of Corps infrastructure.
The Committee also directs the Corps to report if an increased
role by the District can more effectively utilize budgeted
funds to reduce flood risk and increase stormwater capture,
which would provide a more sustainable local source of water.
Santa Ana River, California.--The Committee is aware that
the planned residential and commercial development project in
Rialto, California, may involve modification of a portion of
the Lytle and Cajon Creeks channel improvement project. The
Corps is directed to conduct any necessary reviews in an
efficient manner, including conducting concurrent, rather than
consecutive, reviews to the greatest extent possible.
Waco Lake, Texas.--The Committee has heard concerns that
repairs are needed to a local public road due to slope
instability issues at the Corps project. The Corps is
encouraged to work with local officials to determine whether
issues at the Corps project are the cause of damages to the
public road and what authorities and funding sources may be
available to assist the local community in repairing the road.
Additional Funding for Ongoing Work.--When allocating the
additional funding provided in this account, the Corps shall
consider giving priority to the following:
1. ability to complete ongoing work maintaining
authorized depths and widths of harbors and shipping
channels, including where contaminated sediments are
present;
2. ability to address critical maintenance backlog;
3. presence of the U.S. Coast Guard;
4. extent to which the work will enhance national,
regional, or local economic development, including
domestic manufacturing capacity;
5. extent to which the work will promote job growth
or international competitiveness;
6. number of jobs created directly by the funded
activity;
7. ability to obligate the funds allocated within the
fiscal year;
8. ability to complete the project, separable
element, project phase, or useful increment of work
within the funds allocated;
9. the risk of imminent failure or closure of the
facility; and
10. for harbor maintenance activities,
a. total tonnage handled;
b. total exports;
c. total imports;
d. dollar value of cargo handled;
e. energy infrastructure and national
security needs served;
f. designation as strategic seaports;
g. lack of alternative means of freight
movement; and
h. savings over alternative means of freight
movement.
Additional funding provided for donor ports and energy
transfer ports shall be allocated in accordance with 33 U.S.C.
2238c. The Corps is encouraged to include funding for this
program in future budget requests.
Monitoring of Completed Navigation Projects.--Funding in
addition to the budget request is included to support the
structural health monitoring program to facilitate research to
maximize operations, enhance efficiency, and protect asset life
through catastrophic failure mitigation. The Corps is
encouraged to also consider the need for additional work on the
evaluation of grouted trunnion rods and the validation of
technologies such as protective coatings.
Review of Non-Federal Alterations of Civil Works Projects
(Section 408).--The Committee has heard concerns about the
Corps' implementation of reviews under section 408 (33 U.S.C.
408), particularly with respect to operation and maintenance of
levee systems. The Corps shall be prepared to brief the
Committees on Appropriations of both Houses of Congress not
later than 90 days after the enactment of this Act on execution
of this line item. The briefing shall include an explanation of
the section 408 authority, including how it compares or
conflicts with other relevant authorities; the scope of
projects subject to section 408 reviews; the process used to
establish the current process; any efforts or mechanisms for
adjusting the review to the degree of modifications sought; and
a funding history and funding projections, as well as a
justification for the fiscal year 2018 budget request.
Water Operations Technical Support (WOTS).--Funding in
addition to the budget request is included to continue research
into atmospheric rivers first funded in fiscal year 2015.
Emerging Harbor Projects.--The recommendation includes
funding for individual projects defined as emerging harbor
projects (in section 210(f)(2) of the Water Resources
Development Act (WRDA) of 1986) that exceeds the funding levels
envisioned in section 210(c)(3) and 210(d)(1)(B)(ii) of WRDA
1986.
Great Lakes Navigation System.--The recommendation includes
funding for individual projects within this System that exceeds
the funding level envisioned in section 210(d)(1)(B)(ii) of
WRDA 1986.
Hydrilla.--The Committee recognizes that the uncontrolled
growth of hydrilla at Corps water resource projects in the
United States continues to pose a variety of environmental,
health, safety, and economic problems. The Corps is encouraged
to develop a regional hydrilla control strategy for the South
Atlantic Division.
Shoreline Management Policy.--The Committee is aware of
concerns regarding the new shoreline management policy for
Corps reservoirs within the South Atlantic Division. The Corps
is encouraged to continue working with affected local
communities and stakeholders to address these concerns,
including the use of non-potable water from reservoirs.
Hydropower.--The Committee recognizes hydropower is an
important resource for the energy requirements of our states
and local communities. In some areas, such as the Summersville
Dam in West Virginia, the Corps works with non-federal partners
to provide reliable and affordable energy for the surrounding
community. The Committee encourages the Corps to review options
for expanded non-federal hydropower at appropriate sites
throughout the nation. The Committee anticipates that this
would include evaluations of seasonal pool levels and an
assessment of the impact of expanding hydropower on safety and
operations for the region.
Beneficial Use of Dredged Material.--The Corps is
encouraged to promptly issue implementation guidance for the
pilot program authorized in section 1122 of the WIIN Act.

REGULATORY PROGRAM

Appropriation, 2017................................... $200,000,000
Budget estimate, 2018................................. 200,000,000
Recommended, 2018..................................... 200,000,000
Comparison:
Appropriation, 2017............................... - - -
Budget estimate, 2018............................. - - -

This appropriation provides funds to administer laws
pertaining to the regulation of activities affecting U.S.
waters, including wetlands, in accordance with the Rivers and
Harbors Appropriation Act of 1899, the Clean Water Act, and the
Marine Protection, Research, and Sanctuaries Act of 1972.
Appropriated funds are used to review and process permit
applications, ensure compliance on permitted sites, protect
important aquatic resources, and support watershed planning
efforts in sensitive environmental areas in cooperation with
states and local communities.
The Committee encourages the Corps to adhere to established
regulatory policies and guidance with respect to permits issued
under section 404 of the Clean Water Act and to refrain from
imposing additional requirements on permit applicants.
Public Safety Projects.--The Committee continues to hear
that public safety infrastructure projects have been delayed
due to excessive and repeated reviews. Many communities depend
on these projects to protect their residents from natural
disasters. Considering the risk to life and other damages that
these disasters inflict upon communities, it is in the public
interest to have local governments mitigate for this harm.
Therefore, the Committee encourages the Corps to give the
public safety aspects of a project sufficient and appropriate
consideration when reviewing permit applications.
Shellfish Aquaculture Activities.--The Committee recognizes
the significant effort undertaken by the Seattle District and
the Northwest Division to re-verify 861 pending project
applications submitted by shellfish growers in Washington state
under the 2012 Nationwide Permit (NWP) 48 before this permit
expired in March 2017. Recognizing that these permits will
remain valid for only one calendar year, the Committee directs
the Seattle District, the Northwest Division, and Army Corps
Headquarters to implement a streamlined and efficient process
to re-issue these permits under the 2017 NWP 48.
Programmatic Consultations.--The Committee is concerned
that Endangered Species Act consultation times are causing
permit reviews to be delayed. In order to reduce permit delays,
the Seattle District shall implement programmatic
consultations, also known as Standard Local Operating
Procedures for Endangered Species (SLOPES), to the maximum
extent possible.

FORMERLY UTILIZED SITES REMEDIAL ACTION PROGRAM

Appropriation, 2017................................... $112,000,000
Budget estimate, 2018................................. 118,000,000
Recommended, 2018..................................... 118,000,000
Comparison:
Appropriation, 2017............................... +6,000,000
Budget estimate, 2018............................. - - -

This appropriation funds the cleanup of certain low-level
radioactive materials and mixed wastes located at sites
contaminated as a result of the nation's early efforts to
develop atomic weapons.
The Congress transferred the Formerly Utilized Sites
Remedial Action Program (FUSRAP) from the Department of Energy
to the Corps in fiscal year 1998. In appropriating FUSRAP funds
to the Corps, the Committee intended to transfer only the
responsibility for administration and execution of cleanup
activities at FUSRAP sites where the Department had not
completed cleanup. The Committee did not transfer to the Corps
ownership of and accountability for real property interests,
which remain with the Department. The Committee expects the
Department to continue to provide its institutional knowledge
and expertise to ensure the success of this program and to
serve the nation and the affected communities.
The Committee continues to support the prioritization of
sites, especially those that are nearing completion. Within the
funds provided in accordance with the budget request, the Corps
is directed to complete the Remedial Investigation/Feasibility
Study of the former Sylvania nuclear fuel site at Hicksville,
New York, and, as appropriate, to proceed expeditiously to a
Record of Decision and initiation of any necessary remediation
in accordance with the Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA).

FLOOD CONTROL AND COASTAL EMERGENCIES

Appropriation, 2017................................... $32,000,000
Budget estimate, 2018................................. 35,000,000
Recommended, 2018..................................... 32,000,000
Comparison:
Appropriation, 2017............................... - - -
Budget estimate, 2018............................. -3,000,000

This appropriation funds planning, training, and other
measures that ensure the readiness of the Corps to respond to
floods, hurricanes, and other natural disasters, and to support
emergency operations in response to such natural disasters,
including advance measures, flood fighting, emergency
operations, the provision of potable water on an emergency
basis, and the repair of certain flood and storm damage
reduction projects.

EXPENSES

Appropriation, 2017................................... $181,000,000
Budget estimate, 2018................................. 185,000,000
Recommended, 2018..................................... 181,000,000
Comparison:
Appropriation, 2017............................... - - -
Budget estimate, 2018............................. -4,000,000

This appropriation funds the executive direction and
management of the Office of the Chief of Engineers, the
Division Offices, and certain research and statistical
functions of the Corps.
Alternative financing.--The Committee remains supportive of
public-private partnerships (P3) and other alternative
financing mechanisms. These arrangements have the potential to
be project delivery tools to help sustain the performance of
existing infrastructure and construct new infrastructure more
quickly. In fiscal year 2016, the Corps was directed to develop
a policy on how proposals for public-private partnerships will
be considered by the Corps and how these partnerships will be
incorporated into the budget policy. A policy will allow
interested non-federal sponsors equal opportunity to develop
proposals for the Corps to review under established guidelines.
To date, the Corps has not developed a policy. Therefore, due
to the concerns in previous fiscal years and until such time as
a comprehensive policy is established and provided to the
Committees on Appropriations of both Houses of Congress, the
Corps shall discontinue all work on project-specific public-
private partnerships beyond the P3 project selected as a new
start in fiscal year 2016.
The Committee reminds the Corps of the Committee's long-
standing concerns that federal funding decisions not be biased
by non-federal decisions to construct projects in advance of
federal funding or to provide funding in excess of legally
required cost shares. Unfortunately, the fiscal year 2017 work
plan rating system stated that increased contributions from
non-federal sponsors was one of the criteria used to determine
the new construction starts. The Committee has included
language under the heading ``Additional Funding'' in the front
matter of this title prohibiting the Corps from using such a
criterion in fiscal year 2018. The Corps is directed to
consider and address such equity concerns in any policy on
alternative financing mechanisms being developed.
Surplus Water.--The Committee urges the Corps to consider
adoption of the alternative definition of ``surplus water''
excluding ``natural flows'' from stored water in the Missouri
River mainstem reservoirs in its proposed rule entitled ``Use
of U.S. Army Corps of Engineers Reservoir Projects for
Domestic, Municipal & Industrial Water Supply'' (82 F.R. 9555).

OFFICE OF THE ASSISTANT SECRETARY OF THE ARMY FOR CIVIL WORKS

Appropriation, 2017................................... $4,764,000
Budget estimate, 2018................................. 5,000,000
Recommended, 2018..................................... 4,764,000
Comparison:
Appropriation, 2017............................... - - -
Budget estimate, 2018............................. -236,000

The Assistant Secretary of the Army for Civil Works
oversees the Civil Works budget and policy, whereas the Corps'
executive direction and management of the Civil Works program
are funded from the Expenses account.
The recommendation includes legislative language
restricting the availability of 75 percent of the funding
provided in this account until such time as at least 95 percent
of the additional funding provided in each account has been
allocated to specific programs, projects, or activities. This
restriction shall not affect the roles and responsibilities
established in previous fiscal years of the Office of the
Assistant Secretary of the Army for Civil Works, the Corps
headquarters, the Corps field operating agencies, or any other
executive branch agency.
The Committee counts on a timely and accessible executive
branch in the course of fulfilling its constitutional role in
the appropriations process. The requesting and receiving of
basic, factual information, such as budget justification
materials, is vital in order to maintain a transparent and open
governing process. The Committee recognizes that some
discussions internal to the executive branch are pre-decisional
in nature and, therefore, not subject to disclosure. However,
the access to facts, figures, and statistics that inform these
decisions are not subject to this same sensitivity and are
critical to the budget process. The Administration needs to
ensure timely and complete responses to these inquiries.

GENERAL PROVISIONS--CORPS OF ENGINEERS--CIVIL

(INCLUDING TRANSFER OF FUNDS)

The bill continues a provision that prohibits the
obligation or expenditure of funds through a reprogramming of
funds in this title except in certain circumstances.
The bill continues a provision prohibiting the use of funds
in this Act to carry out any contract that commits funds beyond
the amounts appropriated for that program, project, or
activity.
The bill continues a provision authorizing the transfer of
funds to the Fish and Wildlife Service to mitigate for
fisheries lost due to Corps of Engineers projects.
The bill includes a provision regarding certain dredged
material disposal activities.
The bill includes a provision regarding acquisitions.
The bill includes a provision regarding reallocations at a
project.
The bill includes a provision prohibiting the use of funds
to require permits for the discharge of dredged or fill
material for certain agriculture activities.
The bill includes a provision regarding a rule under the
Clean Water Act.
The bill contains a provision allowing the possession of
firearms at water resources development projects under certain
circumstances.

TITLE II--DEPARTMENT OF THE INTERIOR

Central Utah Project

CENTRAL UTAH PROJECT COMPLETION ACCOUNT

Appropriation, 2017................................... $10,500,000
Budget estimate, 2018................................. 8,983,000
Recommended, 2018..................................... 8,983,000
Comparison:
Appropriation, 2017............................... -1,517,000
Budget estimate, 2018............................. - - -

The Central Utah Project Completion Act (CUPCA) (titles II-
VI of P.L. 102-575) provides for the completion of the Central
Utah Project by the Central Utah Water Conservancy District.
The Act also authorizes the appropriation of funds for fish,
wildlife, and recreation mitigation and conservation;
establishes an account in the Treasury for the deposit of these
funds and of other contributions for mitigation and
conservation activities; and establishes a Utah Reclamation
Mitigation and Conservation Commission to administer funds in
that account. The Act further assigns responsibilities for
carrying out the Act to the Secretary of the Interior and
prohibits delegation of those responsibilities to the Bureau of
Reclamation.
The Committee recommendation includes a total of $8,983,000
for the Central Utah Project Completion Account, which includes
$6,635,000 for Central Utah Project construction, $898,000 for
transfer to the Utah Reclamation Mitigation and Conservation
Account for use by the Utah Reclamation Mitigation and
Conservation Commission, and $1,450,000 for necessary expenses
of the Secretary of the Interior.

Bureau of Reclamation

INTRODUCTION

The mission of the Bureau of Reclamation (Reclamation) is
to manage, develop, and protect water and related resources in
an environmentally and economically sound manner in the
interest of the American public. Since its establishment by the
Reclamation Act of 1902, the Bureau of Reclamation has
developed water supply facilities that have contributed to
sustained economic growth and an enhanced quality of life in
the western states. Lands and communities served by Reclamation
projects have been developed to meet agricultural, tribal,
urban, and industrial needs. Reclamation continues to develop
authorized facilities to store and convey new water supplies
and is the largest supplier and manager of water in the 17
western states. Reclamation maintains 338 reservoirs with the
capacity to store 245 million acre-feet of water.
As Reclamation's large impoundments and appurtenant
facilities reach their design life, the projected cost of
operating, maintaining, and rehabilitating Reclamation
infrastructure continues to grow, yet Reclamation has not
budgeted funding sufficient to implement a comprehensive
program to reduce its maintenance backlog. At the same time,
Reclamation is increasingly relied upon to provide water supply
to federally-recognized Indian Tribes through water
settlements, rural communities through its Title I Rural Water
Program, and municipalities through its Title XVI Water
Reclamation and Reuse Program. Balancing these competing
priorities will be challenging and requires active
participation and leadership on the part of Reclamation and its
technical staff.

FISCAL YEAR 2018 BUDGET REQUEST AND COMMITTEE RECOMMENDATION

The fiscal year 2018 budget request for the Bureau of
Reclamation totals $1,097,393,000. The Committee recommendation
totals $1,229,166,000, $77,334,000 below fiscal year 2017 and
$131,773,000 above the budget request.
A table summarizing the fiscal year 2017 enacted
appropriation, the fiscal year 2018 budget request, and the
Committee recommendation is provided below:

WATER AND RELATED RESOURCES

(INCLUDING TRANSFERS OF FUNDS)

Appropriation, 2017............. $1,155,894,000
Budget estimate, 2018........... 960,017,000
Recommended, 2018............... 1,091,790,000
Comparison:
Appropriation, 2017......... -64,104,000
Budget estimate, 2018....... +131,773,000

The Water and Related Resources account supports the
development, construction, management, and restoration of water
and related natural resources in the 17 western states. The
account includes funds for operating and maintaining existing
facilities to obtain the greatest overall levels of benefits,
to protect public safety, and to conduct studies on ways to
improve the use of water and related natural resources.
The budget request for this account and the approved
Committee allowance are shown on the following table:

Central Valley Project, San Luis Unit, California.--The
Committee is aware that Reclamation and the Western Area Power
Administration are evaluating the possible construction of a
transmission line to directly serve the San Luis Unit from the
Central Valley Project system as an alternative to receiving
service under the California Independent System Operator's
Tariff. The agencies are encouraged to continue to work
together and with the affected Central Valley Project water
contractors to ensure the most efficient and cost-effective
process for implementation.
Tualatin Project, Scoggins Dam, Oregon.--The Committee
supports the budget request of $2,000,000 for Safety of Dams
preconstruction activities at Scoggins Dam. Consistent with
existing authorities, the Committee encourages Reclamation to
evaluate alternatives, including new or supplementary works, to
address dam safety modifications and increased conservation
storage. Considering the high risk associated with Scoggins
Dam, the Committee urges Reclamation to maintain an efficient
schedule in fiscal year 2018. The Committee has been told that
a replacement structure downstream could significantly reduce
project costs for both the federal government and local
stakeholders.
Mni Wiconi Project, South Dakota.--Reclamation is directed
to continue working with the Tribes and relevant federal
agencies, such as the Department of Agriculture, the
Environmental Protection Agency, the Bureau of Indian Affairs,
the Indian Health Service, and the Department of Housing and
Urban Development, to coordinate use of all existing
authorities and funding sources to finish needed community
system upgrades and connections, as well as any transfers of
those systems, as quickly as possible. The Administration is
encouraged to include appropriate funding for upgrades in
future budget requests.
Yakima River Basin Water Enhancement Project Integrated
Plan, Washington.--The Committee is aware of the Integrated
Plan that has been developed by the Yakima River Basin Water
Enhancement Project Working Group, including the Bureau of
Reclamation, to address water storage and water supply needs
for agriculture, fish, and municipalities within the Yakima
River Basin in Central Washington. The Committee is supportive
of the Plan and encourages the Bureau to move forward on
implementing authorized components of the Plan.
Additional Funding for Water and Related Resources Work.--
The recommendation includes funds in addition to the budget
request for Water and Related Resources studies, projects, and
activities. Priority in allocating these funds should be given
to advance and complete ongoing work, including preconstruction
activities and where environmental compliance has been
completed; improve water supply reliability; improve water
deliveries; enhance national, regional, or local economic
development; promote job growth; advance tribal and nontribal
water settlement studies and activities; or address critical
backlog maintenance and rehabilitation activities. Of the
additional funding provided under the heading ``Water
Conservation and Delivery'', $67,000,000 shall be for water
storage projects as authorized in section 4007 of Public Law
114-322. Not later than 45 days after the enactment of this
Act, Reclamation shall provide to the Committees on
Appropriations of both Houses of Congress a report delineating
how the additional funds provided are to be distributed, in
which phase the work is to be accomplished, and an explanation
of the criteria and rankings used to justify each allocation.
The fiscal year 2015-2017 Acts included additional funding
for ``Western Drought Response''. This broad category provided
maximum flexibility for Reclamation to address the most
immediate impacts of the historic drought conditions occurring
at that time. It was always intended to be a temporary measure
to address unusual circumstances. With the extreme drought
conditions now over, and with the new authorities provided in
the WIIN Act, Reclamation can return its focus to long-term
solutions to long-term water supply issues. Therefore, the
Committee has focused the additional funding provided within
specific categories of activities.
Research and Development: Desalination and Water
Purification Program.--Of the funding provided for this
program, $6,000,000 shall be for desalination projects as
authorized in section 4009(a) of Public Law 114-322.
WaterSMART Program: Title XVI Water Reclamation & Reuse
Program.--Of the funding provided for this program, $10,000,000
shall be for water recycling and reuse projects as authorized
in section 4009(c) of Public Law 114-322.
Aquifer Recharge.--The Committee is aware that many states
are exploring new methods of recharging aquifers for increased
water storage and drought mitigation. The Committee expects the
Bureau of Reclamation to work closely with project
beneficiaries to identify and resolve any barriers to aquifer
recharge projects when appropriate.
Quagga and Zebra Mussels.--The Committee is aware of the
environmental and economic threat posed by invasive quagga and
zebra mussels. Mussel infestations at Reclamation reservoirs
can increase significantly the costs of operation of dams,
power plants, pumping plants, and other water infrastructure.
Reclamation and its federal, state, and local partners have
undertaken many varied actions to combat the spread of these
species, including support for watercraft inspection and
decontamination where appropriate. In fact, the fiscal year
2018 budget request includes an increase of $4,388,000 for this
purpose. The Committee encourages Reclamation to continue its
efforts in cooperation with its partners to prevent the spread
of quagga and zebra mussels.

CENTRAL VALLEY PROJECT RESTORATION FUND

Appropriation, 2017................................... $55,606,000
Budget estimate, 2018................................. 41,376,000
Recommended, 2018..................................... 41,376,000
Comparison:
Appropriation, 2017............................... -14,230,000
Budget estimate, 2018............................. - - -

This fund was established to carry out the provisions of
the Central Valley Project Improvement Act and to provide
funding for habitat restoration, improvement and acquisition,
and other fish and wildlife restoration activities in the
Central Valley area of California. Resources are derived from
donations, revenues from voluntary water transfers and tiered
water pricing, and Friant Division surcharges. The account also
is financed through additional mitigation and restoration
payments collected on an annual basis from project
beneficiaries.
Within available funds, the Committee provides funding for
programs and activities according to the Administration's
request. The Committee notes that the decrease for this account
in the budget request and recommendation is based on a three-
year rolling average of collections, in accordance with the
authorizing statute.
Anadromous Fish Screen Program.--The Committee is
encouraged by the progress being made to screen the high
priority unscreened diversions on the Sacramento River under
the Bureau of Reclamation's Anadromous Fish Screen Program. The
Committee encourages Reclamation to continue its focus on
screening of the remaining high priority diversions from within
funds made available under the Central Valley Project
Restoration Fund in future budget requests. The Committee
further encourages Reclamation to prioritize those fish screen
and fish passage projects that will help improve the
reliability of water supply deliveries in areas recently
afflicted by severe drought.

CALIFORNIA BAY-DELTA RESTORATION

(INCLUDING TRANSFERS OF FUNDS)

Appropriation, 2017................................... $36,000,000
Budget estimate, 2018................................. 37,000,000
Recommended, 2018..................................... 37,000,000
Comparison:
Appropriation, 2017............................... +1,000,000
Budget estimate, 2018............................. - - -

The California Bay-Delta Restoration account funds the
federal share of water supply and reliability improvements,
ecosystem improvements, and other activities being developed
for the Sacramento-San Joaquin Delta and associated watersheds
by a state and federal partnership (CALFED). Federal
participation in this program was initially authorized in the
California Bay-Delta Environmental and Water Security Act
enacted in 1996.

POLICY AND ADMINISTRATION

Appropriation, 2017................................... $59,000,000
Budget estimate, 2018................................. 59,000,000
Recommended, 2018..................................... 59,000,000
Comparison:
Appropriation, 2017............................... - - -
Budget estimate, 2018............................. - - -

The Policy and Administration account provides for the
executive direction and management of all Reclamation
activities, as performed by the Commissioner's office in
Washington, D.C.; the Technical Service Center in Denver,
Colorado; and in five regional offices. The Denver and regional
offices charge individual projects or activities for direct
beneficial services and related administrative and technical
costs. These charges are covered under other appropriations.

ADMINISTRATIVE PROVISION

The bill includes an administrative provision allowing for
the purchase of passenger motor vehicles.

General Provisions--Department of the Interior

The bill continues a provision regarding the circumstances
in which the Bureau of Reclamation may reprogram funds.
The bill continues a provision regarding the San Luis Unit
and Kesterson Reservoir in California.
The bill includes a provision regarding the San Joaquin
River Restoration program.

TITLE III--DEPARTMENT OF ENERGY

INTRODUCTION

Funds recommended in Title III provide for all Department
of Energy (DOE) programs, including Energy Efficiency and
Renewable Energy, Electricity Delivery and Energy Reliability,
Nuclear Energy, Fossil Energy Research and Development, Naval
Petroleum and Oil Shale Reserves, the Strategic Petroleum
Reserve, the Northeast Home Heating Oil Reserve, the Energy
Information Administration, Non-Defense Environmental Cleanup,
the Uranium Enrichment Decontamination and Decommissioning
Fund, Science, Nuclear Waste Disposal, Innovative Technology
Loan Guarantee Program, Advanced Technology Vehicle
Manufacturing Loans Program, Tribal Energy Loan Guarantee
Program, Departmental Administration, Office of the Inspector
General, the National Nuclear Security Administration (Weapons
Activities, Defense Nuclear Nonproliferation, Naval Reactors,
and Federal Salaries and Expenses), Defense Environmental
Cleanup, Other Defense Activities, Defense Nuclear Waste
Disposal, the Power Marketing Administrations, and the Federal
Energy Regulatory Commission.

Committee Recommendation

The Department of Energy has requested a total budget of
$27,870,597,000 in fiscal year 2018 to fund programs in its
four primary mission areas: science, energy, environment, and
national security. The Department of Energy budget request is
$2,875,412,000 below fiscal year 2017.
Advanced Research Projects Agency--Energy (ARPA--E).--The
recommendation does not include funds for ARPA--E and directs
that prior-year balances be used to conduct an orderly
shutdown.

CONGRESSIONAL DIRECTION

Article I, section 9 of the United States Constitution
states ``No money shall be drawn from the Treasury but in
consequence of Appropriations made by law''.
The Committee continues the Department's reprogramming
authority in statute to ensure that the Department carries out
its programs consistent with congressional direction. This
reprogramming authority is established at the program, project,
or activity level, whichever is the most specific level of
budget items identified in this Act and the Committee report
accompanying the Act. The Committee also prohibits new starts
through the use of reprogramming and includes other direction
to improve public oversight of the Department's actions. In
addition, the recommendation continues a general provision
specifying which transfer authorities may be used for accounts
funded by this Act. The Committee recommendation includes a new
general provision for fiscal year 2018 that establishes an
absolute limit on the amount of funding that may be transferred
from the Department's accounts to the DOE working capital fund
in aggregate, consistent with the authorities provided by
section 653 of the Department of Energy Organization Act (42
U.S.C. 7263).
United States-Israel Strategic Partnership.--The United
States-Israel Strategic Partnership Act of 2014 (P.L. 113-296)
authorized the Department to establish an energy research and
development partnership with Israel. The recommendation
includes up to $4,000,000 for the Department to explore
activities to bring about this collaborative effort. These
funds are in addition to the $2,000,000 provided for the U.S.-
Israel energy cooperative agreement.

FINANCIAL REPORTING AND MANAGEMENT

The Department still is not in compliance with its
statutory requirement to submit to Congress, at the time that
the President's budget request is submitted, a future-years
energy program that covers the fiscal year of the budget
submission and the four succeeding years, as directed in the
fiscal year 2012 Act. In addition, the Department has an
outstanding requirement to submit a plan to become fully
compliant with this requirement.
Working Capital Fund.--The Committee recommends
$267,901,000, the same as the amount estimated by the
Department of Energy for transfers to the fund in fiscal year
2017, after accounting for the shift of CyberOne activities to
Departmental Administration.
Alleviation of Poverty.--In its fiscal year 2016 report,
the Committee directed the Department to provide a report
detailing all domestic and international projects and programs
within its jurisdiction that contribute to the alleviation of
poverty. The Department is reminded that the Committee
continues to expect the report to be provided expeditiously.
Workplace Diversity.--The Committee recognizes the
importance of workplace diversity in the Department of Energy's
national laboratories. The Committee encourages the Department
to continue to develop and broaden partnerships with minority
serving institutions, including Hispanic Serving Institutions,
Historically Black Colleges and Universities, Asian and Pacific
Islander Serving Institutions, Predominantly Black
Institutions, Tribal Colleges, and other Minority Serving
Institutions. In particular, the Committee encourages programs
involving undergraduate research experiences, high speed
computing access, and education. The Committee notes that the
fiscal year 2017 Act directed the Department to provide a
detailed plan outlining efforts to recruit and retain diverse
talent from the institutions mentioned above. The Committee
looks forward to receiving the plan in a timely manner.
Public Access Plan.--The Committee appreciates the
Department issuing its Public Access Plan on July 24, 2014. The
Committee urges the Department to continue efforts towards full
implementation of the plan and expects an update on progress to
be included in the fiscal year 2019 budget request.

MANAGEMENT OF SPENT NUCLEAR FUEL AND DEFENSE WASTE

The Committee fully supports the Administration's position
to move forward with Yucca Mountain. The Department, together
with the Nuclear Regulatory Commission (NRC), has repeatedly
confirmed over the years that Yucca Mountain is a safe and
secure location to permanently store the nation's spent nuclear
fuel and high-level radioactive waste. However, many more steps
remain before Yucca Mountain begins to accept waste. The
Department's request restarts this process and brings the
Department closer to fulfilling its legal obligation to take
responsibility for storing the nation's nuclear waste.
To restart the adjudication of the Yucca Mountain license
application, the Committee provides the requested levels of
$90,000,000 within Nuclear Waste Disposal, $30,000,000 within
Defense Nuclear Waste Disposal, and $30,000,000 within the NRC.

CYBERSECURITY

The Committee is concerned that the Department has not been
effectively addressing cyber threats to its enterprise. The
Department developed a cyber strategy in December 2015, but
failed to create an implementation plan to carry out its
policy, which creates uncertainty throughout the enterprise on
how to properly deal with cyber threats and safeguard the
Department's assets. Not later than 180 days after the
enactment of this Act, the Department shall develop an
enterprise-wide cyber strategy implementation plan that
includes the relevant resources, project plans, and specific
performance metrics necessary to strengthen the Department's
cyber posture. To enhance the accountability for management of
cyber resources, the Committee recommendation consolidates
funding for cybersecurity that was previously funded within the
DOE working capital fund with funding for cybersecurity under
the Office of the Chief Information Officer within Departmental
Administration.
In addition to securing its own systems, the Department and
our national laboratories play an important role in assuring
the resiliency of the nation's electric grid and energy
infrastructure. The Committee recommendation provides targeted
investments that will defend the U.S. energy sector against the
evolving threat of cyber and other attacks, including
$12,000,000 above the budget request in Other Defense
Activities.

COMMONLY RECYCLED PAPER

The Department shall not expend funds for projects that
knowingly use as a feedstock commonly recycled paper that is
segregated from municipal solid waste or collected as part of a
collection system that commingles commonly recycled paper with
other solid waste at any point from the time of collection
through materials recovery.

EDUCATIONAL ACTIVITIES

The Department is prohibited from funding fellowship and
scholarship programs in fiscal year 2018 unless the programs
were explicitly included in the budget justification or funded
within this recommendation. Any new or ongoing programs that
the Department chooses to fund in fiscal year 2019 must be
detailed in the fiscal year 2019 budget justifications. This
direction shall be followed in future fiscal years unless
contradicted by the Committee.

PAYMENTS IN LIEU OF TAXES

Payments in Lieu of Taxes (PILT) is a program for
discretionary financial assistance that DOE may provide that is
subject to the availability of funds. While DOE may not make
payments for most of the property in its possession, the
Congress provided authorization for payments to specific
properties acquired by the Atomic Energy Commission in the
Atomic Energy Act of 1954. While that authority is broad to
allow for special circumstances, the statute also provides
clear direction that the Department shall be guided by the
policy of not making payments in excess of the taxes that would
have been payable for such property in the condition in which
it was acquired, except in the case of special burdens. The
formulas used by DOE to determine what payments it will make
are not transparent, are not interpreted consistently across
all sites, and no longer appear to be consistent with the
intent of Congress as stated in the authorization language.
Because of the inconsistencies, payments to individual
recipients may be as little as $1,000 or as much as $6,000,000.
After an investigation of the program in the 1990s, the
Government Accountability Office (GAO) substantiated claims
from some communities that DOE's policy was not being equitably
applied and described how DOE had changed basic assumptions in
how it would calculate payments on a case-by-case basis.
Because the Department has deviated so substantially from
its authorization basis over time, the Committee directs the
Department to undertake a full overhaul of the program. After
reasonable notice has been given in the Federal Register, DOE
shall terminate all existing PILT agreements and enter into new
PILT agreements that are consistent across all eligible sites
and are in compliance with the requirement that payments are
not made in excess of the taxes that would have been payable
for such property in the condition in which it was originally
acquired. Not later than 360 days after the enactment of this
Act, the Department shall provide to the Committees on
Appropriations of both Houses of Congress a report that
describes the terms and payment amounts for each new PILT
agreement and certifies that the terms of each agreement and
calculations for payments are consistent across all eligible
sites and with the statutory policy direction.
The Committee further directs the Comptroller General to
undertake an assessment of DOE's PILT program to examine: (1)
which communities have received payments and in what amounts;
(2) how payment amounts were determined by DOE; (3) the extent
to which agreements differ across sites; (4) the consistency of
adjustments made to payments that reduce or increase amounts
paid; and (5) whether DOE has made substantive changes to its
payment policy or individual agreements since the issue was
last examined by the GAO.

PROJECT MANAGEMENT

The Department recently updated DOE Order 413.3B, its
formal order on program and project management direction for
the acquisition of capital assets, with the goal of improving
its performance in delivering projects within the original
performance baseline cost and schedule. Increasingly, DOE
programs are making use of alternative project structures to
award contracts for procurements and other construction
activities in advance of formalizing the performance baseline
for a project. The update fails to address procedures for
carrying out these ``subprojects'', such as what actions should
be performed at critical decision points of a ``subproject''
and how critical decision milestones for a ``subproject''
relate to requirements for the award of critical decision
milestones as detailed in the DOE Order. The Department shall
perform a comprehensive review of how its program offices are
utilizing ``subprojects'' to execute project plans and shall
update DOE Order 413.3B with appropriate procedures and
guidelines that will help the Department meet its goal of
removal from the GAO's High Risk List for fraud, waste, and
abuse.

REPROGRAMMING AND TRANSFER GUIDELINES

The Committee requires the Department to inform the
Committee promptly when a change in program execution and
funding is required during the fiscal year. The Department's
reprogramming requirements are detailed in statute. To assist
the Department in this effort, the following guidance is
provided for programs and activities.
Definition.--A reprogramming includes the reallocation of
funds from one activity to another within an appropriation. The
recommendation includes a general provision providing internal
reprogramming authority to the Department, as long as no
program, project, or activity is increased or decreased by more
than $5,000,000 or 10 percent, whichever is less, compared to
the levels in the table detailing the Committee's
recommendations for the Department's various accounts. For
construction projects, a reprogramming constitutes the
reallocation of funds from one construction project to another
project or a change of $2,000,000 or 10 percent, whichever is
less, in the scope of an approved project.
Criteria for Reprogramming.--A reprogramming should be made
only when an unforeseen situation arises, and then only if
delay of the project or activity until the next fiscal year
would result in a detrimental impact to an agency program or
priority. A reprogramming may also be considered if the
Department can show that significant cost savings can accrue by
increasing funding for an activity. Mere convenience or
preference should not be a factor for consideration. A
reprogramming may not be employed to initiate new programs or
to change program, project, or activity allocations
specifically denied, limited, or increased by the Congress in
the Act or report.
Reporting and Approval Procedures.--In recognition of the
security missions of the Department, the legislative guidelines
allow the Secretary and the Administrator of the National
Nuclear Security Administration jointly to waive the
reprogramming restriction by certifying to the Committees on
Appropriations of both Houses of Congress that it is in the
nation's security interest to do so. The Department shall not
deviate from the levels for activities specified in the report
that are below the level of the detail table, except through
the regular notification procedures of the Committee. No funds
may be added to programs for which funding has been denied. Any
reallocation of new or prior-year budget authority or prior-
year de-obligations, or any request to implement a
reorganization that includes moving previous appropriations
between appropriations accounts must be submitted to the
Committees on Appropriations of both Houses of Congress in
writing and may not be implemented prior to approval by the
Committees.
Transfers.--As in fiscal year 2017, funding actions into or
out of accounts funded by this Act may only be made by transfer
authorities provided by this or other appropriations Acts.

COMMITTEE RECOMMENDATIONS

The Committee's recommendations for Department of Energy
programs in fiscal year 2018 are described in the following
sections. A detailed funding table is included at the end of
this title.

ENERGY PROGRAMS

Energy Efficiency and Renewable Energy

Appropriation, 2017................................... $2,090,200,000
Budget estimate, 2018................................. 636,149,000
Recommended, 2018..................................... 1,103,908,000
Comparison:
Appropriation, 2017............................... -986,292,000
Budget estimate, 2018............................. +467,759,000

Energy Efficiency and Renewable Energy (EERE) programs
include research, development, demonstration, and deployment
activities advancing energy efficiency and renewable energy
technologies, as well as federal energy assistance programs.
The EERE program is divided into three portfolios: sustainable
transportation, renewable energy, and energy efficiency. The
sustainable transportation portfolio, which consists of the
vehicles, bioenergy, and hydrogen and fuel cell programs,
advances the development of plug-in electric and other
alternative fuel vehicles, high-efficiency advanced combustion
engines, and the replacement of oil with clean domestic
transportation fuels. The renewable energy portfolio, which
consists of the solar, wind, water, and geothermal programs,
aims to develop innovative technologies to make renewable
electricity generation cost competitive with traditional
sources of energy. The energy efficiency portfolio, which
consists of the advanced manufacturing, buildings, and federal
energy assistance programs, seeks cost-effective solutions to
reduce energy consumption in plants, buildings, and homes.
The recommendation for EERE broadly reflects a gradual
shift towards early stage research and development activities.
However, where noted in the report, the Committee encourages a
limited scope of deployment activities.
The Committee encourages EERE to offer technical and other
programmatic assistance to the Commonwealth of Puerto Rico to
support investment in innovative technologies to effectively
reduce power system emissions, efficiently treat wastewater,
produce biofuels, and generate power from solid waste.
The Committee recognizes the importance of the Department's
work on the Energy-Water Nexus and as part of that effort, the
Committee encourages the Department to enter into an
interdepartmental agreement with the Department of Agriculture
for research that explores how to integrate ongoing research
projects at the various DOE Labs and the Agricultural Research
Service to develop affordable, deployable, energy- and water-
efficient food production platforms, beginning in food-insecure
communities across the country. By working together, DOE and
the Department of Agriculture can bring respective strengths
and resources to designing the most desirable low-cost and
efficient production system.
The Committee is aware of the significant benefits from the
further development of electrochemical conversion of CO2 to
syngas for renewable fuel production. The Department is
encouraged to support the further development of renewable
hydrocarbon fuels from low-cost waste CO2 and low-carbon
renewable energy.
Zero Emissions Energy Credit.--The Department, in
consultation with the Energy Information Administration, shall
provide to the Committees on Appropriations of both Houses of
Congress not later than 180 days after the enactment of this
Act an analysis evaluating the effects of a Zero Emissions
Energy Credit that replaces existing renewable energy
subsidies, once they phase out, with a graduated tax credit
that is apportioned based on the total emissions profile,
including both airborne and solid waste byproduct emissions, of
energy production sources. This analysis shall include: (1)
estimated effects on utility rates paid by consumers in both
rate-regulated and competitive access jurisdictions; (2)
estimated impacts on the cost of zero-emissions-based purchased
power agreements employed by investor-owned, cooperatively-
owned, and municipal utilities; (3) estimated reductions in
effective rates on the per-kilowatt-hour customer cost of
qualifying sources, compared to current per-kilowatt-hour
customer cost of those sources; (4) estimated impact on the
need for state-implemented zero emissions credits being used to
support existing baseload power sources; (5) predicted effects
on federal government expenditures and revenues; and (6)
estimated effects in driving the adoption and improvement of
lower or zero emissions energy production technologies.
Social Cost of Carbon.--The Department should not
promulgate any regulations in fiscal year 2018 using the May
2013 estimates for the social cost of carbon until a new
working group is convened. The working group should include the
relevant agencies and affected stakeholders, re-examine the
social cost of carbon using the best available science, and
revise the estimates using an accurate discount rate and
domestic estimate in accordance with E.O. 12866 and OMB
Circular A-4. To increase transparency, the working group
should solicit public comment prior to finalizing any updates.

SUSTAINABLE TRANSPORTATION

The Vehicle, Bioenergy, and Hydrogen and Fuel Cell
Technologies programs fund activities that can reduce American
exposure to future high oil prices. Research into cutting-edge
technologies that will increase the fuel economy of gasoline
and diesel fuel vehicles--the vast majority of today's fleet--
will allow Americans to spend less on fuel while traveling the
same distance. Research into next-generation automotive and
fuel cell technologies that power vehicles with domestic energy
sources such as natural gas, electricity, biofuels, and
hydrogen can likewise dramatically lower the impact of future
high gas prices on Americans.
Vehicle Technologies.--Within available funds, the
recommendation includes $72,000,000 for Batteries and Electric
Drive Technology, $25,000,000 for Energy Efficient Mobility
Systems, and $20,000,000 to continue the SuperTruck II program
to further improve the efficiency of heavy-duty class 8 long-
and regional-haul vehicles.
The Committee directs the Department to continue to support
the Clean Cities program, including providing competitive
grants to support alternative fuel, infrastructure, and vehicle
deployment activities. When issuing competitive grants in
support of these activities, the Department is encouraged to
focus on awards that range from $500,000 to $1,000,000 each and
include at least one Clean Cities coalition partner. The
recommendation provides $2,500,000 for Advance Vehicle
Competitions to execute the fourth year of the four-year
collegiate engineering competitions, EcoCar3. The Committee
encourages the Department to support continued funding for
research that allows the U.S. to continue its leadership role
in advancing state-of-the-art transportation infrastructure,
which is vital to economic development.
Within available funds, the recommendation includes up to
$15,000,000 for medium- and heavy-duty on-road natural gas
engine research and development, including energy efficiency
improvements, emission after-treatment technologies, fuel
system enhancements, and new engine development.
The Committee notes that the commercial off-road vehicle
sector, including industrial, mining, and farm equipment,
consumes over two quads of energy per year. The Department is
encouraged to consider activities that promote technologies to
reduce the energy consumption of commercial off-road vehicles
and provides up to $10,000,000 to support this effort.
Bioenergy Technologies.--Within available funds,
$27,000,000 is for feedstock supply and logistics to address
issues limiting production and conversion systems at large. No
funding is provided for the joint initiative with the Navy and
the Department of Agriculture to develop commercial diesel and
jet biofuels production capacity for defense purposes.
The Committee is appreciative of research the Bioenergy
Technologies Office has supported regarding wet and gaseous
waste streams in waste-to-energy projects. The Committee is
interested in further research and development activities to
support baseload power generation using municipal solid waste-
to-energy technologies. The Department is directed to provide
to the Committees on Appropriations of both Houses of Congress
not later than 180 days after the enactment of this Act a
report on research and development activities that can improve
the economic viability of municipal solid waste-to-energy
facilities.
Hydrogen and Fuel Cell Technologies.--Within available
funds, $2,000,000 is for the EERE share of the integrated
hybrid energy systems work with the Office of Nuclear Energy
and $7,000,000 is to enable integrated energy systems using
high and low temperature electrolyzers with the intent of
advancing the H2@Scale concept.
The Committee recognizes the progress of the program and
expresses continued support for stationary, vehicle, motive,
and portable power applications of this technology. The
Department is encouraged to explore technologies that advance
the storage and transportation fuel distribution, such as
hydrogen compressors and carbon fiber tanks, and retail fueling
systems. The Department is also encouraged to work with the
Department of Transportation on supporting hydrogen fueling
infrastructure.
The Committee recognizes the need to support the
development of alternative fueling infrastructure for U.S.
consumers. Accordingly, the Department is encouraged to
collaborate with the National Institute of Standards and
Technology to allow accurate measurement of hydrogen at fueling
stations.

RENEWABLE ENERGY

The Solar Energy, Wind Energy, Water Power, and Geothermal
Technologies programs fund applied research, development, and
demonstration to reduce the cost of renewable energy to
economically competitive levels. Research into innovative
technologies, such as photovoltaic and concentrating solar
technologies, offshore wind, hydropower, and ground heat, can
expand energy production from our domestic resources and reduce
our dependence on foreign oil.
Solar Energy.--The Committee encourages the Department to
research high efficiency thin-film photovoltaics and processes
for high-speed, low-cost processing to produce stable materials
on flexible substrates that can be used in residential and
commercial power and be integrated into buildings, vehicles,
and food production. Research programs are encouraged to
include cooperation between industry and academia and to
include advanced optical characterization that enables
development of strong correlations between materials, cell
optical properties, and the photovoltaic power performance of
the working solar cells.
The Committee also encourages the Department to find ways
to expand access to solar energy to residences and businesses
in low-income communities.
Wind Energy.--Within available funds, the recommendation
provides not less than $10,000,000 on LCOE reduction, domestic
manufacturing, and lowering market barriers for distributed
wind systems, including small wind for rural homes and farms.
The Department may provide $1,000,000 for the Wind for Schools
program.
The Committee continues to support wind activities with
large generation potential that rely on data required by
federal agencies and technology innovations that would not be
developed by the private sector alone. To this end, the
Committee supports an emphasis on offshore wind technologies
that address the unique opportunities and issues across the
nation's waterways, such as high winds, icing, and deep water.
The Committee is aware of efforts by the Wind Technologies
Office to work with U.S. industry to support the development of
main shaft and gearbox bearing technologies. The Committee
encourages the Department to collaborate with industry and to
consider investment into the development of new technologies
that advance critical bearing and gearbox technologies used in
wind turbines.
Water Power.--Within available funds, the recommendation
provides $29,000,000 for marine and hydrokinetic technologies
and $24,000,000 for conventional hydropower, of which
$6,600,000 is for the purposes of section 242 of the Energy
Policy Act of 2005. Within the funding provided for marine and
hydrokinetic technologies, the Department is directed to
continue competitive solicitations for a balanced portfolio of
industry-led research, development, and deployment of wave and
current (ocean, wave, tidal, in-river) energy conversion
components and systems. The Committee expects the Department to
continue to support collaborations between the previously
designated Marine Renewable Energy Centers and the National
Laboratories, including personnel exchanges, to support
research, development, and deployment of marine energy
components and systems.
The Committee appreciates the Department's ongoing
exploration of marine and hydrokinetic technologies research.
In last year's House Report, the Committee directed the
Department to report on the past allocation of funds, including
demonstrating diversity in possible public and private
partnerships and diversity in regional locations for siting
these new methods and technologies. The Committee looks forward
to the results of this report.
The Committee supports the Hydropower Technologies
subprogram's HydroNEXT Initiative, including efforts to address
technology development challenges and critical environmental
and market challenges, such as permitting new hydropower
projects.

ENERGY EFFICIENCY

The Advanced Manufacturing, Building Technologies, Federal
Energy Management, and Weatherization and Intergovernmental
programs advance cost-effective solutions to reduce energy
consumption through increased efficiency. Research into
cutting-edge technologies that enhance manufacturing processes;
develop advanced materials; and reduce energy use in buildings,
homes, and factories can serve the national interest by greatly
reducing our energy needs, while also giving American
manufacturers an advantage to compete in the global
marketplace.
Advanced Manufacturing.--Within available funds, the
recommendation provides not less than $4,205,000 for
improvements in the steel industry and $5,000,000 for transient
kinetic analysis for scaling of industrial processes and
developing new catalysis programs for industrial applications.
The recommendation does not include funding for the
Critical Materials Energy Innovation Hub, the Energy Water
Desalination Hub, or the six Clean Energy Manufacturing
Innovation (CEMI) Institutes. The Committee supports the
request to phase out operations and directs an orderly shutdown
at the Hubs and six CEMI institutes. However, in order to
ensure the most promising early stage research and development
efforts of the Hubs and CEMI institutes are continued, the
Committee provides up to $15,000,000 to support competitive
awards for similar activities.
The Committee recognizes the importance of the textile
sector and believes that federal support for advanced textile
research is essential to maintaining the competitiveness of the
domestic textile and apparel industry. The Committee believes
that advanced textile research can develop more sustainable
manufacturing processes and technologies that will benefit
producers, foster the reshoring of textile jobs to the United
States, and reduce the global environmental impact of textile
manufacturing. The Committee therefore encourages the
Department to consider the need for competitively-funded
advanced textile manufacturing process research.
In the fiscal year 2016 report, the Committee directed the
Department to analyze the impact federal investment may have in
strengthening the availability and usage of lithium, including
low-sodium lithium metal. As the Committee awaits the results
of this study, the Department is encouraged to explore ways in
which these upcoming recommendations can increase U.S. domestic
supply of lithium and low-sodium lithium metal.
Building Technologies.--Within available funds, the
recommendation includes up to $25,000,000 for transactive
controls research and development and $25,000,000 for solid
state lighting. If the Secretary finds solid-state lighting
technology eligible for the twenty-first century lamp prize,
specified under section 655 of the Energy Independence and
Security Act of 2007, $5,000,000 is provided in addition to
funds recommended for lighting research and development.
Building energy consumption represents at least a 40
percent component of energy consumption in the U.S. Energy
efficiency is thus a critical component of infrastructure
development. The Committee recognizes the importance of the
Transformation in Cities initiative for local government
planning and encourages the Department to continue its support
of the goals of the initiative.
The Committee notes that natural gas plays an important
role in meeting the energy needs of U.S. homes and commercial
buildings. In particular, the Committee is aware of research
opportunities related to the use of natural gas in water
heating, space conditioning, furnace venting, and combined heat
and power systems. The Committee encourages the Department to
explore research and development that can advance future
natural gas systems and appliances to meet consumer demand for
high efficiency and environmentally friendly products. To
continue these efforts, up to $4,000,000 is for research,
development, and market transformation programs on energy
efficiency efforts related to the direct use of natural gas in
residential applications, including gas heat pump heating and
water heating, on-site combined heat and power, and natural gas
appliance venting.
Weatherization and Intergovernmental Programs.--The
Committee recommends $278,000,000 for Weatherization and
Intergovernmental Programs.

CORPORATE SUPPORT

The Program Direction, Strategic Programs, and Facilities
and Infrastructure budgets provide the necessary resources for
program and project management across all of EERE's technology
programs, for the adoption of technologies to market, and for
the operation and upkeep of the National Renewable Energy
Laboratory.
Strategic Programs.--Within available funds, $2,000,000 is
to continue activities in support of the U.S.-Israel energy
cooperative agreement.
The Department is encouraged to work with two-year, public
community and technical colleges on job training programs that
lead to an industry-recognized credential in the energy
workforce.

Electricity Delivery and Energy Reliability

Appropriation, 2017................................... $230,000,000
Budget estimate, 2018................................. 120,000,000
Recommended, 2018..................................... 218,500,000
Comparison:
Appropriation, 2017............................... -11,500,000
Budget estimate, 2018............................. +98,500,000

The Electricity Delivery and Energy Reliability program
advances technologies and provides operational support to
increase the efficiency, resilience, and security of the
nation's electricity delivery system. The power grid employs
aging technologies at a time when power demands, the deployment
of new intermittent technologies, and rising security threats
are imposing new stresses on the system. The Office of
Electricity Delivery and Energy Reliability aims to develop a
modern power grid by advancing cybersecurity technologies,
intelligent and high-efficiency grid components, and energy
storage systems.
Electricity Delivery and Energy Reliability Research and
Development.--The Committee continues to support the
Department's research activities to ensure transmission
reliability, but believes reliability and resiliency modeling,
and the decisions taken by utility industry and emergency
response planners, can be enacted through the use of advanced
integrated analytical and decision-making tools. Within
available funds for Transmission Reliability, $5,000,000 is for
university, national laboratory, and industry research and
development for competitively-awarded activities to develop
multi-use integrated analytical and decision-making tools.
Within available funds for Cybersecurity for Energy Delivery
Systems, $9,000,000 is to continue development of the industry-
scale electric grid test bed.
The Committee notes the important role the National SCADA
Testbed (NSTB) has played in enhancing power system
cybersecurity. There remains a need for a capability to assess
power system vulnerabilities, develop engineered solutions to
mitigate them, share information and develop operational
security training and best practices. Requested by its Section
9 entities, the Department, as the sector-specific agency, is
encouraged to consider establishing an updated national
laboratory NSTB capability to support its Section 9 and broader
energy sector responsibilities.
The Committee supports the strategic goals of the Grid
Modernization Multi-year Program Plan and encourages the
Department to continue implementation as in previous years. The
Committee supports the Grid Modernization Laboratory Consortium
leadership in a comprehensive, multi-disciplinary research and
development program managed through a consortium of national
laboratories, leveraging national laboratory assets and
partnerships with non-federal entities. The Committee is
pleased that the Department has undertaken peer review
processes.
The Committee encourages the Office of Electricity Delivery
and Energy Reliability to continue to collaborate with the
Office of Science and EERE on the energy storage portion of the
Grid Modernization Multi-year Program Plan. The Department is
also encouraged to consider opportunities to translate research
between grid, vehicular, and other potential energy storage
applications. Activities should be informed by priorities
identified by the Department, national laboratories, electric
utilities, and other members of private industry.
The Committee notes that the Department has previously
supported energy storage integration projects. The Department
is encouraged to continue investment of energy storage systems
at grid relevant scales and maximize the value stream of these
technologies. In addition, the Committee supports the
Department's ongoing efforts to improve electricity reliability
and other grid integration initiatives. Accordingly, the
Committee supports the Department's grid integration
demonstration modules and urges the Department to continue
collaborating with industrial and academic partners and the
national laboratories involved in the grid integration
consortium as they explore the integration of renewables with
energy storage technologies.

Nuclear Energy

Appropriation, 2017................................... $1,016,616,000
Budget estimate, 2018................................. 703,000,000
Recommended, 2018..................................... 969,000,000
Comparison:
Appropriation, 2017............................... -47,616,000
Budget estimate, 2018............................. +266,000,000

Nuclear power generates approximately one-fifth of the
nation's electricity and will continue to be an important
baseload energy source in the future. The Department of
Energy's Nuclear Energy (NE) program invests in research,
development, and demonstration activities that develop the next
generation of clean and safe reactors, further improve the
safety of our current reactor fleet, and contribute to the
nation's long-term leadership in the global nuclear power
industry.

NUCLEAR ENERGY RESEARCH AND DEVELOPMENT

Nuclear Energy Enabling Technologies.--Within available
funds, $47,000,000 is for Crosscutting Technology Development,
of which $10,000,000 is for work on advanced sensors and
instrumentation, $6,000,000 is for hybrid energy systems, and
up to $30,000,000 is to support development of advanced reactor
technologies and high-priority crosscutting research and
development areas; $36,000,000 is for the Nuclear Science User
Facilities, of which $5,000,000 is for nuclear energy
computation support; $34,200,000 is for Nuclear Energy Advanced
Modeling and Simulation; and not less than $9,800,000 is for
GAIN initiative activities. The recommendation does not include
funds for the Energy Innovation Hub, but includes additional
funding within Nuclear Energy Advanced Modeling and Simulation
for competitive awards to continue similar activities.
Integrated University Program.--The Committee recommends
$5,000,000 to continue the Integrated University Program, which
is critical to ensuring the nation's nuclear science and
engineering workforce in future years.
Reactor Concepts Research, Development, and
Demonstration.--The recommendation includes $144,300,000 for
Advanced Reactor Technologies, of which $60,000,000 is for a
solicitation to support technical, first-of-its-kind
engineering and design and regulatory development of next
generation light water and non-light water reactor
technologies, including small modular reactors. The Department
is encouraged to work with the Nuclear Regulatory Commission to
ensure appropriate component, system, and plant certification,
regulation, and licensing support is provided to developers of
next generation technologies as a part of these activities. The
recommendation also includes $30,000,000 for fuel and graphite
qualification and up to $5,000,000 for a MW-scale reactor
study. The recommendation includes $35,000,000 for research and
development to support efforts to develop a versatile fast test
reactor. The Committee also supports the current fleet of
reactors as they continue to ensure safe and reliable
operations and includes $40,000,000 for the Light Water Reactor
Sustainability program.
The Department shall continue to work with the National
Aeronautics and Space Administration (NASA) to ensure an
adequate supply of plutonium-238 is available for future NASA
space exploration missions.
Fuel Cycle Research and Development.--Within available
funds, the recommendation provides $71,000,000 for the Advanced
Fuels Program, of which not less than $35,000,000 is for the
accident tolerant fuels activity and $8,000,000 is for
additional support of capability development of transient
testing, including test design, modeling, and simulation;
$24,000,000 for Material Recovery and Waste Form Development to
maintain U.S. competency in the area of fuel cycle
technologies; and $8,500,000 for Systems Analysis and
Integration.
The recommendation provides $45,000,000 to continue generic
Used Nuclear Fuel Disposition research and development
activities and notes that some previous activities supported by
this account are now included within the funding provided to
restart Yucca Mountain licensing activities.

IDAHO FACILITIES MANAGEMENT

INL Operations and Infrastructure.--Within available funds,
the recommendation includes $238,000,000 for INL Operations and
Infrastructure to support the MFC and ATR Five Year Plan to
increase reliability and sustainability.

Fossil Energy Research and Development

Appropriation, 2017................................... $668,000,000
Budget estimate, 2018................................. 280,000,000
Recommended, 2018..................................... 634,600,000
Comparison:
Appropriation, 2017............................... -33,400,000
Budget estimate, 2018............................. +354,600,000

Fossil energy resources, such as coal, oil, and natural
gas, generate approximately 65 percent of the nation's
electricity and will continue to provide for the majority of
our needs for the foreseeable future. The Fossil Energy
Research and Development program funds research, development,
and demonstration activities to improve existing technologies
and to develop next-generation systems in the full spectrum of
fossil energy areas. At a time when fossil fuel power
generation is expanding around the globe, the activities funded
within this program advance our nation's position as a leader
in fossil energy technologies and ensure that we use the full
extent of our domestic resources safely and efficiently.
The Committee notes that the budget request proposed a
restructuring of the ``NETL Research and Operations'' and
``NETL Infrastructure'' accounts. That restructuring is not
included, and the recommendation instead continues the budget
structure from fiscal year 2017.

COAL--CCS AND POWER SYSTEMS

The Department is directed to use funds within the coal
program only for coal research and development, with the
exception of the Supercritical Transformational Electric Power
Generation Initiative, which has applications to all high-
temperature fossil heat sources.
The recommendation provides $25,000,000 to continue to
support the solicitation for two large-scale pilots that focus
on transformational coal technologies that represent a new way
to convert energy to enable a step change in performance,
efficiency, and the cost of electricity compared to today's
technologies. Such technologies include thermodynamic
improvements in energy conversion and heat transfer, such as
pressurized oxygen combustion and chemical looping, and
improvements in carbon capture systems technology. In making
the awards for large-scale pilots, the Department should
prioritize entities that have previously received funding for
these technologies at the lab and bench scale.
The Committee also notes that the budget request recommends
a significant restructuring of the National Energy Technology
Laboratory (NETL). The Committee does not support the closure
of any NETL sites and provides no funds to plan, develop,
implement, or pursue the consolidation or closure of any of the
NETL sites.
The Committee supports the integrated carbon and energy
management activities of NE and EERE and provides $2,000,000
for Hybrid Carbon Conversion activities within Fossil Energy.
Carbon Storage.--The Department is encouraged to fund
activities that promote the reuse of captured carbon from coal
for the production of fuel and other valuable products.
Advanced Energy Systems.--Within available funds,
$8,000,000 is for the Advanced Air Separation Program to
continue activities improving advanced air separation
technologies and $30,000,000 is for Solid Oxide Fuel Cells to
focus on research and development to enable efficient, cost-
effective electricity generation with minimal use of water and
the use of abundant domestic coal and natural gas resources
with near-zero atmospheric emissions of CO2 and pollutants.
Moreover, central power generation applications of solid oxide
fuel cells can be integrated with carbon capture and storage
efforts to contribute to a secure energy future. The Committee
encourages the Department to support field pilot programs to
advance this technology to commercial success. The Committee
urges the Department to fund research and development
activities to improve the efficiency of gas turbines used in
power generation systems, working cooperatively with industry,
universities, and other appropriate parties.
Crosscutting Research.--Within available funds, the
recommendation provides $16,000,000 for Coal Utilization
Science and $31,500,000 for Plant Optimization Technologies, of
which $15,000,000 is for the Advanced Ultrasupercritical
Program to fabricate, qualify, and develop domestic suppliers
capable of producing components from high temperature
materials. The Committee encourages the Department to advance
technologies that address near-term water needs to treat
wastewater or other alternate water sources from operative coal
power plants while generating excess electricity to offset
water treatment costs.
The Committee supports the Department's Historically Black
Colleges and Universities and Hispanic-Serving Institutions
education and training program and recommends $1,000,000 to
award research grants to qualifying universities and
institutions.
NETL Coal Research and Development.--The recommendation
includes $15,000,000 for the Department to expand its external
agency activities to develop and test commercially viable
advanced separation technologies at proof-of-concept or pilot
scale that can be deployed near term for the extraction and
recovery of rare earth elements and minerals from U.S. coal and
coal byproduct sources having the highest potential for
success. The Committee encourages the Department to leverage
the capabilities of outside applied researchers in implementing
these activities.

NATURAL GAS TECHNOLOGIES

Research.--Within available funds, the recommendation
provides $7,000,000 for Environmentally Prudent Development and
$5,200,000 for the Risk Based Data Management System. The
Department is encouraged to explore technologies that curtail
methane gas emissions from flaring and venting in shale
formations. The Department is also encouraged to support
funding research and development concerning technologies to
convert flared and vented storage tank waste gas to
electricity.

UNCONVENTIONAL FOSSIL ENERGY TECHNOLOGIES

Prior investment in this area has led to the current shale
gas revolution and continued research and development is vital
for the efficient and sustainable development of this resource.
The Committee encourages the Department to focus resources
on university-based research in fundamental oil and gas
research to explore improved oil recovery from unconventional
reservoirs, enhanced oil recovery for conventional reservoirs,
and safe and environmentally friendly deep water oil and gas
technologies.
The Committee also encourages the Department to support
efforts to increase production of unconventional fossil fuels
through advanced technology and modeling, including optimizing
high resolution and time-lapse geophysical methods for improved
resource detection and better rock characterization at the
micro- and nano-scale. Additionally, the Department is
encouraged to examine the feasibility of utilizing geothermal
energy from produced fluids for in-field energy requirements.
The Committee is pleased with the Department's progress to
date on studying the volatility of crude oil from the Bakken
Shale in North Dakota and accurately assessing and
characterizing volatility while transporting. The Committee
directs the Department to continue this research in partnership
with the Department of Transportation to improve the safety of
crude oil transported by rail in this country.
The Committee notes the fiscal year 2017 report directed
the Department to issue a report on the feasibility of
establishing an ethane storage and distribution hub in the
United States. The Committee expects this report to be
delivered in a timely manner.

NETL INFRASTRUCTURE

Within available funds, the recommendation provides
$5,500,000 for NETL's Supercomputer, Joule.

Naval Petroleum and Oil Shale Reserves

Appropriation, 2017................................... $14,950,000
Budget estimate, 2018................................. 4,900,000
Recommended, 2018..................................... 4,900,000
Comparison:
Appropriation, 2017............................... -10,050,000
Budget estimate, 2018............................. - - -

The Naval Petroleum and Oil Shale Reserves no longer serve
the national defense purpose envisioned in the early 1900's,
and consequently the National Defense Authorization Act for
fiscal year 1996 required the sale of the Government's interest
in the Naval Petroleum Reserve 1 (NPR-1). To comply with this
requirement, the Elk Hills field in California was sold to
Occidental Petroleum Corporation in 1998. Following the sale of
Elk Hills, the transfer of the oil shale reserves, and transfer
of administrative jurisdiction and environmental remediation of
the Naval Petroleum Reserve 2 (NPR-2) to the Department of the
Interior, the Department retained one Naval Petroleum Reserve
property, the Naval Petroleum Reserve 3 (NPR-3) in Wyoming
(Teapot Dome field). The Department issued a disposition plan
for NPR-3 in June 2013 and began implementation of the plan in
fiscal year 2014. Transfer of NPR-3 to a new owner occurred in
fiscal year 2015.

Strategic Petroleum Reserve

Appropriation, 2017................................... $223,000,000
Budget estimate, 2018................................. 180,000,000
Recommended, 2018..................................... 252,000,000
Comparison:
Appropriation, 2017............................... +29,000,000
Budget estimate, 2018............................. +72,000,000

The mission of the Strategic Petroleum Reserve is to store
petroleum to reduce the adverse economic impact of a major
petroleum supply interruption to the U.S. and to carry out
obligations under the international energy program.
The recommendation includes funding to address facilities
development and operations, including physical security and
cavern integrity, and to maintain 1,000,000 barrels of gasoline
blendstock in the Northeast Gasoline Supply Reserve. The
recommendation includes legislative language to direct the
Secretary to draw down and sell crude oil from the Strategic
Petroleum Reserve, with proceeds to be deposited into the
Energy Security and Infrastructure Modernization Fund for use
in carrying out the Life Extension II project. This drawdown
and use of proceeds is in accordance with section 404 of the
Bipartisan Budget Act of 2015.

Northeast Home Heating Oil Reserve

Appropriation, 2017................................... $6,500,000
Budget estimate, 2018................................. 6,500,000
Recommended, 2018..................................... 6,500,000
Comparison:
Appropriation, 2017............................... - - -
Budget estimate, 2018............................. - - -

The acquisition and storage of heating oil for the
Northeast began in August 2000 when the Department of Energy,
through the Strategic Petroleum Reserve account, awarded
contracts for the lease of commercial storage facilities and
acquisition of heating oil. The purpose of the reserve is to
assure home heating oil supplies for the Northeastern States
during times of very low inventories and significant threats to
the immediate supply of heating oil. The Northeast Home Heating
Oil Reserve was established as a separate entity from the
Strategic Petroleum Reserve on March 6, 2001. The reserve
contains one million barrels of Ultra Low Sulfur Diesel (ULSD),
which is the equivalent of three to four days of emergency
stocks in the Northeast.

Energy Information Administration

Appropriation, 2017................................... $122,000,000
Budget estimate, 2018................................. 118,000,000
Recommended, 2018..................................... 118,000,000
Comparison:
Appropriation, 2017............................... -4,000,000
Budget estimate, 2018............................. - - -

The Energy Information Administration is a quasi-
independent agency within the Department of Energy established
to provide timely, objective, and accurate energy-related
information to the Congress, the executive branch, state
governments, industry, and the public. The Committee is
appreciative of the Energy Information Administration's efforts
in establishing a National Oil and Gas Gateway.

Non-Defense Environmental Cleanup

Appropriation, 2017................................... $247,000,000
Budget estimate, 2018................................. 218,400,000
Recommended, 2018..................................... 222,400,000
Comparison:
Appropriation, 2017............................... -24,600,000
Budget estimate, 2018............................. +4,000,000

Non-Defense Environmental Cleanup includes funds to manage
and remediate sites used for civilian, energy research, and
non-defense related activities. These past activities resulted
in radioactive, hazardous, and mixed waste contamination that
requires remediation, stabilization, or some other action.
Small Sites.--Within Small Sites, $12,000,000 is for Idaho
National Laboratory, including increases needed to complete
security systems upgrades at the Fort Saint Vrain spent fuel
storage installation that were deferred in fiscal year 2017.
Oak Ridge Activities.--Since fiscal year 2015, Congress has
provided support for a memorandum of agreement for historic
preservation of the K-25 gaseous diffusion uranium enrichment
facility in Oak Ridge, Tennessee. Not later than 30 days after
the enactment of this Act, the Department shall provide to the
Committees on Appropriations of both Houses of Congress a
report that describes the Department's plan, total cost, and
proposed schedule for meeting the commitments made in its
agreement.

Uranium Enrichment Decontamination and Decommissioning Fund

Appropriation, 2017................................... $768,000,000
Budget estimate, 2018................................. 752,749,000
Recommended, 2018..................................... 768,000,000
Comparison:
Appropriation, 2017............................... - - -
Budget estimate, 2018............................. +15,251,000

The Uranium Enrichment Decontamination and Decommissioning
Fund was established by the Energy Policy Act of 1992 to pay
for the cleanup of gaseous diffusion plants at Portsmouth,
Ohio; Paducah, Kentucky; and the East Tennessee Technology Park
in Oak Ridge, Tennessee.
Title X Uranium/Thorium Reimbursements.--The Committee
recommends $32,959,000 to reimburse private licensees for the
cost of cleaning up uranium and thorium processing sites in
accordance with title X of the Energy Policy Act of 1992. The
Committee expects the Department to reimburse licensees for all
previous expenses including costs related to remediation,
restoration, and oversight of these programs and to ensure all
of the impacted communities are made whole. Fulfilling the
obligation to fully reimburse licensees is important to the
health and safety of the impacted communities. The Committee
expects the Department of Energy to continue to provide
sufficient resources within future budgets to reimburse
licensees for approved claim balances in a timely manner and to
avoid accumulating balances and liabilities.
Uranium transfers.--Not later than 90 days after the
enactment of this Act, the Department shall provide to the
Committees on Appropriations of both Houses of Congress a
report with recommendations to minimize the impact of uranium
transfers on the domestic uranium mining, conversion, and
enrichment industries, including any actions that would require
new authority for the Department to implement. The report shall
specify any new legal authorities necessary for the Department
to contract directly with domestic uranium industries to
introduce uranium into the market.

Science

Appropriation, 2017................................... $5,392,000,000
Budget estimate, 2018................................. 4,472,516,000
Recommended, 2018..................................... 5,392,000,000
Comparison:
Appropriation, 2017............................... - - -
Budget estimate, 2018............................. +919,484,000

The Office of Science funds basic science research across
national laboratories, universities, and other research
institutions in support of American innovation and the
Department's energy-focused missions. Through research in
physics, biology, chemistry, and other science disciplines,
these activities expand scientific understanding and secure the
nation's leadership in energy innovation. The Office of Science
is the nation's largest supporter of basic research in the
physical sciences.
The Science program office includes Advanced Scientific
Computing Research, Basic Energy Sciences, Biological and
Environmental Research, Fusion Energy Sciences, High Energy
Physics, Nuclear Physics, Workforce Development for Teachers
and Scientists, Science Laboratories Infrastructure, Safeguards
and Security, and Program Direction. The Committee has placed a
high priority on funding these activities in fiscal year 2018,
given the private sector is not likely to fund research whose
findings either have high non-commercial value or are not
likely to be commercialized in the near or medium term. This
work is vital to sustaining the scientific leadership of the
United States and can provide the underpinnings for valuable
intellectual property in the coming decades.
The Department is directed to submit to the Committees on
Appropriations of both Houses of Congress not later than 120
days after the enactment of this Act a solar fuels research
initiative strategic plan. The 10-year plan should discuss
research challenges and opportunities, program goals, and
milestones to overcome scientific and technological
impediments. The plan should also include a description of the
planned coordination between the Office of Science and EERE to
leverage basic research and early-stage translational research
in solar fuels to accelerate the pace of innovation, an
assessment of U.S. leadership in solar fuels research relative
to international competition, and the extent to which
investments are sufficient to maintain U.S. leadership.

ADVANCED SCIENTIFIC COMPUTING RESEARCH

The Advanced Scientific Computing Research program develops
and hosts some of the world's fastest computing and network
capabilities to enable science and energy modeling, simulation,
and research.
Exascale Computing Project.--The recommendation includes
$170,000,000 for exascale activities.
High Performance Computing and Network Facilities.--In
addition to the long-term exascale initiative, the Committee
supports continued upgrade and operation of the Leadership
Computing Facilities at Argonne and Oak Ridge national
laboratories and of the High Performance Production Computing
capabilities at Lawrence Berkeley National Laboratory. The
recommendation includes $100,000,000 for the Argonne Leadership
Computing Facility, $112,000,000 for the Oak Ridge Leadership
Computing Facility, and $92,000,000 for the National Energy
Research Scientific Computing Center at Lawrence Berkeley
National Laboratory. Within available funds, the recommendation
includes $65,000,000 to support necessary infrastructure
upgrades and operations for ESnet.
The Committee is concerned that the deployment plan for an
exascale machine has undergone major changes without an
appropriately defined cost and performance baseline. The
Department is directed to provide to the Committees on
Appropriations of both Houses of Congress not later than 90
days after the enactment of this Act an update to the exascale
plan that includes a detailed cost and performance baseline,
taking into account flat and slightly increasing funding
assumptions, for the technological challenges remaining to be
solved to deliver an exascale machine.

BASIC ENERGY SCIENCES

The Basic Energy Sciences program funds basic research in
materials science, chemistry, geoscience, and bioscience. The
science breakthroughs in this program enable a broad array of
innovation in energy technologies and other industries critical
to American economic competitiveness.
Research.--The recommendation provides no funding for the
continued operation of the Batteries and Energy Storage
Innovation Hub and the Fuels from Sunlight Innovation Hub.
However, the recommendation includes $10,000,000 for
competitive awards that continue similar research activities
previously supported by the Hubs. Within available funds, the
Committee directs the continued support of all the nanoscience
research centers and urges optimal operations for all the light
sources. The recommendation includes $15,000,000 for the
Experimental Program to Stimulate Competitive Research,
$489,109,000 for facilities operations of the nation's light
sources, $261,000,000 for facilities operations of the high
flux neutron sources, and $122,272,000 for facilities
operations of the nanoscale science research centers.

BIOLOGICAL AND ENVIRONMENTAL RESEARCH

The Biological and Environmental Research (BER) program
supports advances in energy technologies and related science
through research into complex biological and environmental
systems. The Committee encourages the Department to give
priority to optimizing the operation of BER user facilities and
the programs that utilize them.
The Committee continues to support the Department's funding
for academia to perform studies that include the collection and
evaluation of atmospheric data from satellite observations
obtained in cooperation with NASA. Satellite observations of
the atmosphere, within the context of the Earth as a global
system, provide information that is critical in the
interpretation of earth-based observations. Additionally, the
Department encourages cooperative research on this topic with
the national laboratories and the National Oceanic and
Atmospheric Administration.
The Committee notes that the Office of Biological and
Environmental Research has pioneered research in fundamental
genomic science of plants and microbes. The Committee urges the
Department to build upon and leverage this expertise and to
invest in scientific infrastructure needed to facilitate a
deeper understanding of the fundamental principles governing
microbiome establishment, function, and interactions in diverse
environments, fostering a predictive understanding of how
microbiomes interact with plants, control the availability of
materials such as carbon, nutrients, and contaminants, and
respond to changes in the environment.
The recommendation includes $40,000,000, the same as the
budget request, for the Bioenergy Research Centers selected
from recompetition in fiscal year 2017. Additionally, the
recommendation supports the operation of the Joint Genome
Institute.

FUSION ENERGY SCIENCES

The Fusion Energy Sciences program supports basic research
and experimentation aiming to harness nuclear fusion for energy
production.
University-led research helps further U.S. research in
fusion energy and trains the next generation of scientists. In
fiscal year 2017, the Department was directed to summarize the
fusion energy sciences program's current collaborations with
universities and report back to the Committee. The Committee
looks forward to the results of this report.
Research.--The Committee recommends $214,027,000 for
burning plasma science foundations, $42,069,000 for burning
plasma science long pulse, and $75,904,000 for discovery plasma
science. Within available funds, the recommendation provides
$17,500,000 for High Energy Density Laboratory Plasmas and
$17,000,000 for Scientific Discovery through Advanced
Computing.
Construction.--The Committee recommends $63,000,000 for the
U.S. contribution to the ITER project. The Committee continues
to believe the ITER project represents an important step
forward for energy sciences and has the potential to
revolutionize the current understanding of fusion energy.

HIGH ENERGY PHYSICS

The High Energy Physics program supports fundamental
research into the elementary constituents of matter and energy
and ultimately into the nature of space and time. The program
focuses on particle physics theory and experimentation in three
areas: the energy frontier, which investigates new particles
and fundamental forces through high-energy experimentation; the
intensity frontier, which focuses on rare events to better
understand our fundamental model of the universe's elementary
constituents; and the cosmic frontier, which investigates the
nature of the universe and its form of matter and energy on
cosmic scales.
Research.--Within available funds, the recommendation
provides $9,800,000 for the Large Synoptic Survey Telescope
Camera and $29,500,000 for the dark energy and dark matter
experiments.

NUCLEAR PHYSICS

The Nuclear Physics program supports basic research into
the fundamental particles that compose nuclear matter, how they
interact, and how they combine to form the different types of
matter observed in the universe today.
Operations and Maintenance.--Within available funds, the
Department is encouraged to fund optimal operations at Thomas
Jefferson National Accelerator Facility to support runtime at
the 12GeV Continuous Electron Beam Accelerator Facility and at
Brookhaven National Laboratory to support runtime at the
Relativistic Heavy Ion Collider.

Nuclear Waste Disposal

Appropriation, 2017................................... $- - -
Budget estimate, 2018................................. 90,000,000
Recommended, 2018..................................... 90,000,000
Comparison:
Appropriation, 2017............................... +90,000,000
Budget estimate, 2018............................. - - -

The Committee recommendation includes $90,000,000 for
Nuclear Waste Disposal to continue the Department of Energy's
statutorily required activities for the Yucca Mountain license
application. Within available funds, the Department is directed
to reestablish its capability to respond to the Nuclear
Regulatory Commission during the adjudicatory process and to
otherwise fully support the Yucca Mountain licensing process.
The recommendation includes support for affected units of local
government that have formally consented to host Yucca Mountain.

Title 17 Innovative Technology Loan Guarantee Program

ADMINISTRATIVE EXPENSES

(INCLUDING RESCISSIONS OF FUNDS)

GROSS APPROPRIATION

Appropriation, 2017................................... $37,000,000
Budget estimate, 2018................................. 2,000,000
Recommended, 2018..................................... 2,000,000
Comparison:
Appropriation, 2017............................... -35,000,000
Budget estimate, 2018............................. - - -

OFFSETTING COLLECTIONS

Appropriation, 2017................................... $-30,000,000
Budget estimate, 2018................................. -2,000,000
Recommended, 2018..................................... -2,000,000
Comparison:
Appropriation, 2017............................... +28,000,000
Budget estimate, 2018............................. - - -

RESCISSION

Appropriation, 2017................................... $- - -
Budget estimate, 2018................................. -250,000,000
Recommended, 2018..................................... -411,000,000
Comparison:
Appropriation, 2017............................... -411,000,000
Budget estimate, 2018............................. -161,000,000

NET APPROPRIATION

Appropriation, 2017................................... $7,000,000
Budget estimate, 2018................................. -250,000,000
Recommended, 2018..................................... -411,000,000
Comparison:
Appropriation, 2017............................... -418,000,000
Budget estimate, 2018............................. -161,000,000

The Committee notes that the rescinded loan authority
excludes authority used for conditional commitments made by
October 1, 2017.

Advanced Technology Vehicles Manufacturing Loan Program

Appropriation, 2017................................... $5,000,000
Budget estimate, 2018................................. 2,000,000
Recommended, 2018..................................... 5,000,000
Comparison:
Appropriation, 2017............................... - - -
Budget estimate, 2018............................. +3,000,000

The Energy Independence and Security Act of 2007
established a direct loan program to support the development of
advanced technology vehicles and associated components in the
United States. The program provides loans to automobile and
automobile part manufacturers for the cost of re-equipping,
expanding, or establishing manufacturing facilities in the
United States to produce advanced technology vehicles or
qualified components, and for associated engineering
integration costs. The funds provided support administrative
operations only.

Tribal Energy Loan Guarantee Program

Appropriation, 2017................................... $- - -
Budget estimate, 2018................................. - - -
Recommended, 2018..................................... 500,000
Comparison:
Appropriation, 2017............................... +500,000
Budget estimate, 2018............................. +500,000

The Energy Policy Act of 2005 established a loan guarantee
program for energy development to provide or expand electricity
on Indian land. The funds provided support administrative
operations only.

Departmental Administration

GROSS APPROPRIATION

Appropriation, 2017................................... $246,000,000
Budget estimate, 2018................................. 241,652,000
Recommended, 2018..................................... 281,693,000
Comparison:
Appropriation, 2017............................... +35,693,000
Budget estimate, 2018............................. +40,041,000

REVENUES

Appropriation, 2017................................... $-103,000,000
Budget estimate, 2018................................. -96,000,000
Recommended, 2018..................................... -96,000,000
Comparison:
Appropriation, 2017............................... +7,000,000
Budget estimate, 2018............................. - - -

NET APPROPRIATION

Appropriation, 2017................................... $143,000,000
Budget estimate, 2018................................. 145,652,000
Recommended, 2018..................................... 185,693,000
Comparison:
Appropriation, 2017............................... +42,693,000
Budget estimate, 2018............................. +40,041,000

Funding recommended for Departmental Administration
provides for general management and program support functions
benefiting all elements of the Department of Energy, including
the National Nuclear Security Administration. The account funds
a wide array of Headquarters activities not directly associated
with the execution of specific programs. The recommendation
includes six reprogramming control points in this account to
provide flexibility in the management of support functions.
Other Departmental Administration includes Management, Project
Management Oversight and Assessments, Chief Human Capital
Officer, Office of Technology Transitions, Office of Small and
Disadvantaged Business Utilization, General Counsel, Energy
Policy and Systems Analysis, International Affairs, and Public
Affairs. The Department is directed to continue to submit a
budget request that proposes a separate funding level for each
of these activities.
Economic Impact and Diversity.--The recommendation includes
$10,169,000 for Economic Impact and Diversity, the same as
fiscal year 2017 and $169,000 more than the budget request.
Chief Information Officer.--The recommendation includes
$126,274,000, including $91,443,000 as requested within
Departmental Administration and $34,831,000 as requested for
CyberOne activities within the DOE working capital fund. Within
this amount, not less than $68,974,000 shall be for
cybersecurity and secure information. To enhance the
accountability for management of cyber resources, the Committee
recommendation consolidates cybersecurity funding under the
Office of the Chief Information Officer.
Renewable Fuel Standard.--Under section 211(o)(9)(B) of the
Clean Air Act, a small refinery may petition the Environmental
Protection Agency (EPA) Administrator for an exemption from the
Renewable Fuel Standard (RFS) on the basis that the refinery
experiences a disproportionate economic hardship under the RFS.
When evaluating a petition, the Administrator consults with the
Secretary of Energy to determine whether disproportionate
economic hardship exists. According to the Department's March
2011 Small Refinery Exemption Study, disproportionate economic
hardship must encompass two broad components: a high cost of
compliance relative to the industry average disproportionate
impacts and an effect sufficient to cause a significant
impairment of the refinery operations viability. If the
Secretary finds that either of these two components exists, the
Committee directs the Secretary to recommend to the EPA
Administrator at least a 50 percent waiver of RFS requirements
for the petitioner. The Committee also directs the Secretary to
score all of the metrics in the study and to score the metrics
according to the 2011 study scoring criteria and not any later
addendum to the study. The Secretary is directed to seek small
refinery comment before making changes to its scoring metrics
for small refinery petitions for RFS waivers and to notify the
Committee prior to making any final changes to scoring metrics.
Only the impact on the small refinery's transportation fuel
margins are pertinent to measuring RFS impacts on relative
refining margins. The Committee notes that the conference
report accompanying the Energy and Water Development and
Related Agencies Appropriations Act, 2010, addressed similar
issues and directed the Secretary to redo an earlier study done
to evaluate whether the RFS program imposes a disproportionate
economic hardship on small refineries. In calling for the
Secretary to redo the study, the conference report cited the
lack of small refinery input into the earlier study, concerns
about regional RFS compliance cost disparities, small refinery
dependence on the purchase of renewable fuel credits (RINs),
and increasing RIN costs. Since then, the dramatic rise in RIN
prices has amplified RFS compliance and competitive
disparities, especially where unique regional factors exist,
including high diesel production, no export access, and limited
biodiesel infrastructure and production. In response to
petitions in prior years, the Secretary determined that the RFS
program would impose a disproportionate economic and structural
impact on several small refineries. Despite this determination,
the Secretary did not recommend, and EPA did not provide, any
RFS relief because it determined the refineries were profitable
enough to afford the cost of RFS compliance without
substantially impacting their viability. The Committee reminds
the Secretary that the RFS program may impose a
disproportionate economic hardship on a small refinery even if
the refinery makes enough profit to cover the cost of complying
with the program. Small refinery profitability does not justify
a disproportionate regulatory burden where Congress has
explicitly given EPA authority, in consultation with the
Secretary, to reduce or eliminate this burden.

Office of the Inspector General

Appropriation, 2017................................... $44,424,000
Budget estimate, 2018................................. 49,000,000
Recommended, 2018..................................... 49,000,000
Comparison:
Appropriation, 2017............................... +4,576,000
Budget estimate, 2018............................. - - -

The Office of the Inspector General performs agency-wide
audit, inspection, and investigative functions to identify and
correct management and administrative deficiencies that create
conditions for existing or potential instances of fraud, waste,
and mismanagement. The audit function provides financial and
performance audits of programs and operations. The inspections
function provides independent inspections and analyses of the
effectiveness, efficiency, and economy of programs and
operations. The investigative function provides for the
detection and investigation of improper and illegal activities
involving programs, personnel, and operations.
To the extent possible, the Inspector General shall ensure
the findings of its investigative reports are made available to
the Committee and the public. Revised reports may be required
in order to protect information that would otherwise limit
distribution to Internal Official Use Only.

ATOMIC ENERGY DEFENSE ACTIVITIES

The Atomic Energy Defense Activities programs of the
Department of Energy in the National Nuclear Security
Administration (NNSA) consist of Weapons Activities, Defense
Nuclear Nonproliferation, Naval Reactors, and Federal Salaries
and Expenses; outside of the NNSA, these include Defense
Environmental Cleanup, Other Defense Activities, and Defense
Nuclear Waste Disposal. Descriptions of each of these accounts
are provided below.

NATIONAL NUCLEAR SECURITY ADMINISTRATION

The Department of Energy is responsible for enhancing U.S.
national security through the military application of nuclear
technology and reducing the global danger from the
proliferation of weapons of mass destruction. The NNSA, a semi-
autonomous agency within the Department, carries out these
responsibilities. Established in March 2000 pursuant to title
32 of the National Defense Authorization Act for Fiscal Year
2000, the NNSA is responsible for the management and operation
of the nation's nuclear weapons complex, naval reactors, and
nuclear nonproliferation activities.
The recommendation includes $13,914,400,000 for the NNSA,
$976,148,000 above fiscal year 2017 and $16,600,000 below the
budget request.

Weapons Activities

Appropriation, 2017................................... $9,318,093,000
Budget estimate, 2018................................. 10,239,344,000
Recommended, 2018..................................... 10,239,344,000
Comparison:
Appropriation, 2017............................... +921,251,000
Budget estimate, 2018............................. - - -

Weapons Activities ensures the safety, security,
reliability, and effectiveness of the nation's nuclear weapons
stockpile without nuclear testing by providing funding to four
main elements: Directed Stockpile Work; Research, Development,
Technology and Engineering; Infrastructure and Operations; and
Security.
Affordability of Nuclear Modernization Programs.--To ensure
that the nation's existing nuclear weapons remain safe,
reliable, and effective, the NNSA must modernize the nuclear
weapons stockpile and its related infrastructure. As
recommended by the Government Accountability Office (GAO), the
NNSA is directed to include an assessment of the affordability
of NNSA's portfolio of modernization programs in future
versions of its Stockpile Stewardship and Management Plan and
options to bring its estimates of modernization funding needs
into alignment with potential future budgets.
Improving the Efficiency of NNSA Sites.--Over the past
several years, the DOE Inspector General has identified issues
with the management and oversight of the indirect cost pools at
the NNSA sites, including the use of general and administrative
funds to conduct research into laser inertial fusion energy,
improper use of licensing and royalty funds for a National
Geographic documentary, improper payments for consultants not
attributed to any scope of work, and hundreds of millions in
questioned, unresolved and potentially unallowable costs.
Recently, the NNSA provided the Committee with a notification
that it intended to perform an additional $76,800,000 in
infrastructure projects that were previously unreported, are of
limited benefit to the weapons program, and are over budget.
These additional costs will ultimately be charged
proportionally to all program activities at the laboratories
via the indirect cost pools, including life extension programs
whose costs are already trending upwards. The NNSA must take
action to keep costs in line and complete its projects on time
and on budget by reducing the proliferation of non-mission and
administrative costs being charged to weapons programs at its
nuclear weapons laboratories and production sites. Not later
than 120 days after the enactment of this Act, the NNSA shall
provide to the Committees on Appropriations of both Houses of
Congress a plan to reduce the rates of its overhead indirect
cost pools at each site by at least five percent in aggregate
by fiscal year 2020.
Improving the Return on Infrastructure Investments.--The
Committee is concerned that the NNSA's prioritization,
planning, and execution of its infrastructure activities does
not adequately address the need to reduce the high maintenance
and operating cost of its facilities or the need to control
project scope to provide the best value to the taxpayer while
still meeting requirements. The NNSA has not budgeted
sufficiently for risk reduction in excess facilities or
footprint reduction projects and appears to have abandoned its
previous goals to reduce the footprint and operating costs of
its Albuquerque Federal Complex. The NNSA has not moved forward
with mature projects that would eliminate the need to maintain
and upgrade security zones while improving site security
postures, such as the West End Protected Area Reduction project
at Y-12 or the Material Staging Facility at Pantex. Instead,
the budget request proposes a new Tritium Production Capability
Project to construct 30,000 square feet of new processing space
at a high end cost of $16,633 per square foot, which would be
the highest cost per square foot of any NNSA nuclear facility
to date. Within infrastructure and operations and security, the
Committee recommendation makes efforts, where possible, to
improve efficiency, address the safety issues and risks posed
by aging legacy facilities, and more effectively meet goals to
modernize and upgrade the NNSA's infrastructure. In addition,
the Committee continues to place a strong emphasis on reducing
the backlog of deferred maintenance.

DIRECTED STOCKPILE WORK

Directed Stockpile Work includes all activities that
directly support weapons in the nuclear stockpile, including
maintenance, research, development, engineering, certification,
dismantlement, and disposal activities. The Committee
recommends $3,977,026,000 for Directed Stockpile Work,
$668,999,000 above fiscal year 2017 and the same as the budget
request.
Life Extension Programs.--The recommendation provides full
funding for the NNSA's life extension programs, including the
ongoing refurbishment efforts for the B61, W76, W88, and W80
warheads.
W80-4 Life Extension Program.--The NNSA's Office of Cost
Estimating and Program Evaluation is directed to conduct a
review on the alternatives analyzed for the W80-4 life
extension program and report to the Committees on
Appropriations of both Houses of Congress not later than 60
days after the enactment of this Act on whether the NNSA
considered a wide range of alternatives that would meet
requirements and whether accurate cost data regarding potential
alternatives was available and utilized to inform decision-
making.
Strategic Materials.--A secure supply of beryllium is
essential to ensuring the reliability of the U.S. nuclear
stockpile. Government manufacturing of beryllium has become
increasingly outdated and expensive. The Committee encourages
the NNSA to investigate the feasibility of developing a new and
efficient contractor-operated beryllium and beryllium-oxide
production capability that can supply NNSA needs more
effectively and affordably.

RESEARCH, DEVELOPMENT, TECHNOLOGY, AND ENGINEERING

The NNSA's Research, Development, Technology, and
Engineering (RDT&E) activities focus on the development and
maintenance of critical capabilities, tools, and processes that
support science-based stockpile stewardship and continued
certification of the stockpile in the absence of underground
nuclear testing. For RDT&E, the Committee recommends
$2,003,632,000, $161,402,000 above fiscal year 2017 and
$24,730,000 below the budget request.
Science.--The recommendation supports the request to
increase the number of subcritical experiments that are
necessary to gather data and improve the physics-based
computational models used for the annual assessment and
certification of the nuclear weapons stockpile.
Academic Alliances and Partnerships.--The recommendation
includes $18,832,000 for the Minority Serving Institution
Partnerships Program, including funding for Tribal Colleges and
Universities.
Inertial Confinement Fusion and High Yield.--The Committee
recommends $522,959,000, of which $68,000,000 is for the OMEGA
Laser Facility at the University of Rochester, $330,000,000 is
for the National Ignition Facility (NIF), and $8,000,000 is for
the Naval Research Laboratory. The NNSA has made little
progress in achieving measurable results towards ignition over
the past two years and does not plan to perform any assessments
on its ability to achieve ignition until at least 2020. Not
later than 120 days after the enactment of this Act, the NNSA
shall provide to the Committees on Appropriations of both
Houses of Congress a plan with specific performance milestones
for its experimental activities that covers a five-year period
and that includes milestones to achieve ignition and to support
other stockpile activities.
Advanced Simulation and Computing.--Within the amounts for
exascale, $12,000,000 is provided for research on advanced
memory technology research to address exascale technical
challenges.

INFRASTRUCTURE AND OPERATIONS

Infrastructure and Operations provides funding for the
operations, maintenance, and recapitalization of NNSA
facilities and infrastructure. The Committee recommends
$2,808,363,000 for Infrastructure and Operations, the same as
fiscal year 2017 and $5,226,000 above the budget request.
Operations of Facilities.--The recommendation includes
$848,470,000 for Operations of Facilities. No funding is
provided to prepare transuranic waste at Lawrence Livermore
National Laboratory for shipment to the Waste Isolation Pilot
Plant (WIPP). There is insufficient capacity to begin accepting
newly-generated transuranic waste at WIPP due to the degraded
status of its ventilation system. Newly-identified streams of
transuranic wastes should not delay shipments that are already
in the queue and that are required to meet cleanup commitments
when alternatives may be available. The NNSA is directed to
investigate alternatives for managing its newly-generated
transuranic wastes, including storage and processing options
available at other DOE sites, to meet operating needs until
such time as additional capacity at WIPP is available.
Maintenance and Repair of Facilities.--The Committee
recommends $395,000,000. Within this amount, not less than
$10,000,000 shall be to address structural, electrical, and
other maintenance deficiencies within the deteriorating Lithium
Production Facility.
Recapitalization.--The Committee recommends $545,359,000 to
restore funding for the Infrastructure and Safety program to
the fiscal year 2017 level. Of the additional amounts provided
above the budget request, $43,000,000 is to support excess
facility disposition at the Pantex Plant, Y-12 National
Security Site, and other NNSA sites, including up to $9,000,000
to demolish facilities and utilities along the proposed new leg
of the PIDAS at the Y-12 National Security Complex and up to
$7,000,000 to support de-inventory, risk reduction, and pre-
demolition activities at Alpha 5 and Beta-4 that must be
accomplished before the NNSA can transfer those facilities to
the Office of Environmental Management.
18-D-650 Material Staging Facility, PX.--The Committee
recommends $5,200,000 to advance plans to construct an
underground facility for safe and efficient staging of weapons
and weapons components that would enhance the site's security
posture and reduce the future recapitalization mortgage related
to Zone 4 West and the associated PIDAS replacements.
16-D-515 Albuquerque Complex Project, Albuquerque, NM.--The
Committee recommends $18,000,000 to continue project
engineering and design. Despite analyses it performed at the
start of the project that concluded the NNSA would need 279,000
square feet of new office space to meet its needs, the project
has grown in scope to a 333,000 square foot office complex
since project funding was last provided by the Congress. None
of the project funds may be available for construction until
the NNSA can provide a design for new office space that will
meet program mandates to reduce the footprint and achieve
operating savings.
06-D-141 Uranium Processing Facility (UPF), Y-12.--In its
fiscal year 2017 budget request, the NNSA reported it would
have a sufficient amount of the design completed to establish a
baseline and begin construction for the Main Process Building,
Salvage and Accountability Building, and the Process Support
Facilities in the fourth quarter of fiscal year 2017. The
fiscal year 2018 budget request indicates these activities have
slipped into the second quarter of fiscal year 2018 and the
NNSA's cost estimates for design, equipment, and other
construction activities have increased by $46,000,000,
$33,000,000, and $409,000,000, respectively. To address these
rising costs, the NNSA has redistributed $403,000,000, or 29
percent, of its project contingency funds that are budgeted to
address unforeseen issues, and has proposed increasing funding
$43,000,000 above the fiscal year 2018 estimates included in
the fiscal year 2017 Future Years Nuclear Security Plan. The
NNSA also does not have a certified and compliant earned value
management system in place for the project, which is necessary
to accurately track project performance. Given the trend in
rising costs and slipping schedules before major facility
construction has started, the Committee encourages the NNSA to
put in place a valid performance tracking system and ensure
that it sets a performance baseline that adequately addresses
project risks. Furthermore, the NNSA is encouraged to take
management action to limit scope creep and reduce risks that
would otherwise result in the NNSA exceeding the cost
commitment of $6,500,000,000. The recommendation includes
$620,000,000, full funding of the fiscal year 2018 needs as
reported in last year's projections for the project, but defers
funding requested to address project cost growth until a full
independent cost estimate has been provided to the Committees
on Appropriations of both Houses of Congress.
04-D-125 Chemistry and Metallurgy Research (CMR)
Replacement Project, LANL.--The Committee recommends
$177,239,000. Funding for the CMR Replacement Project shall be
limited to that of the original mission need for the project,
that is, to relocate existing analytic chemistry and materials
characterization capabilities from the legacy CMR facility, as
directed in previous years. The Committee rejects the NNSA's
continued proposal to restructure this 15 year-old project into
a rolling series of open ended ``subprojects'' that have no
clear scope and mission need associated with them. The NNSA has
not resolved issues detailed by the GAO on setting clear
parameters and requirements when structuring its plutonium
recapitalization projects. The Committee is also concerned by
the NNSA's recently announced plans to continue to operate the
deteriorating CMR building instead of meeting its prior
commitments to vacate the facility by 2019, despite the risks
posed by the facility's location on a possible seismic fault.
Not later than 30 days after the enactment of this Act, the
NNSA shall provide to the Committees on Appropriations of both
Houses of Congress a plan for vacating this facility as soon as
possible that is not dependent on the NNSA's success in meeting
pit production targets.

SECURITY

Physical Security Improvement Program.--The Committee
recommends $30,000,000 to modernize and upgrade physical
security systems at the NNSA sites that are nearing the end of
design life. The NNSA did not propose sufficient funding in its
budget request to begin to address the substantial backlog of
projects for security infrastructure and is behind on providing
a plan mandated by the Congress to address the issue.
17-D-710 West End Protected Area Reduction Project, Y-12.--
The Committee recommends $23,400,000. The NNSA is directed to
provide to the Committees on Appropriations of both Houses of
Congress quarterly updates on its progress in advancing the
project until such time as the NNSA can demonstrate a
commitment to move the project forward.

LEGACY CONTRACTOR PENSIONS

The Committee provides $232,050,000 for payments into the
legacy University of California contractor employee defined
benefit pension plans.

Defense Nuclear Nonproliferation

(INCLUDING RESCISSION OF FUNDS)

Appropriation, 2017................................... $1,902,000,000
Budget estimate, 2018................................. 1,842,310,000
Recommended, 2018..................................... 1,825,461,000
Comparison:
Appropriation, 2017............................... -76,539,000
Budget estimate, 2018............................. -16,849,000

The Defense Nuclear Nonproliferation account provides
funding to programs of the National Nuclear Security
Administration that prevent, counter, and respond to global
nuclear threats. The Committee recommendation rescinds
$49,000,000 in unexpended prior-year balances, as requested.
Nuclear Posture Review.--With a Nuclear Posture Review
currently underway, the Committee encourages the Administration
to address the importance of nonproliferation activities in
U.S. nuclear strategy, including efforts to prevent nuclear
terrorism, counter the proliferation of nuclear material and
technologies, stop the attainment of nuclear weapons
capabilities, and enhance strategic stability.
Continuing U.S. Nonproliferation Activities in Russia.--The
recommendation includes no new funds to enter into contracts
and agreements with Russia in fiscal year 2018, the same as
fiscal year 2017 and the budget request.
Commercial Nuclear Fuel Reprocessing.--In 1977, President
Carter issued a policy statement prohibiting the commercial
reprocessing and recycling of plutonium. DOE shall investigate
the status of this policy and report to the Committees on
Appropriations of both Houses of Congress on the impacts to the
U.S. commercial nuclear power industry and whether it is in the
U.S. national security interest to continue the policy.

DEFENSE NUCLEAR NONPROLIFERATION

Funding for the Office of Defense Nuclear Nonproliferation
is provided across five programmatic areas: Global Material
Security, Material Management and Minimization,
Nonproliferation and Arms Control, Defense Nuclear
Nonproliferation R&D, and Nonproliferation Construction. To
preserve and advance science and engineering expertise in
uranium for purposes of national security and nonproliferation,
the Committee encourages the ongoing collaboration between the
Office of Defense Nuclear Nonproliferation and the DOE Office
of Intelligence and Counterintelligence.
Global Material Security.--Within funds for domestic
radiological materials, the recommendation includes up to
$10,000,000 to expand the capacity of radiological security
programs designed to replace cesium-137 chloride irradiation
sources with alternate technologies that cannot be used in
radiological dispersal devices. Replacing these cesium sources
with safe alternatives provides permanent threat reduction and
eliminates the need for the NNSA to assist in costly security
upgrades to irradiator facilities. Within funds for Global
Material Security, the recommendation includes $101,180,000 for
Nuclear Smuggling Detection and Deterrence. Due to the delays
in executing agreements with foreign nations, the NNSA has
sufficient prior-year balances to support fiscal year 2018
needs.
Material Management and Minimization.--Nuclear materials
management plans at the Savannah River Site (SRS) indicate the
site is planning to receive plutonium, uranium, and other
nuclear materials for the next 15 years and that H-Canyon
would, from fiscal years 2018 to 2024, process 40 metric tons
of highly enriched uranium (HEU) to support the NNSA's HEU
downblending activities. By the end of 2017, nearly 75 percent
of the number of fuel assemblies or items in L-Basin will be
materials transported from foreign and domestic research
reactors to reduce proliferation risks and prevent theft and
diversion. Many of the countries from which the NNSA has
transported materials are high income nations, including
Sweden, Belgium, Italy, and Japan. While the NNSA has raised
the cost share to these countries, the substantial costs of
receiving, storing, processing, and final disposition are
nevertheless being transferred onto DOE's cleanup program. The
EM budget is further burdened by the NNSA's need to restart
plutonium disposal operations at SRS in order to avoid fines
for its failure to meet MOX milestones. Not later than 60 days
after the enactment of this Act, the NNSA shall provide to the
Committees on Appropriations of both Houses of Congress a
report on the costs to establish an enduring program for the
repatriation and elimination of international fuel cycle
materials to further U.S. nonproliferation and other nuclear
security goals through the maintenance, operation, and upgrade
of facilities currently funded within Nuclear Material
Management of the Defense Environmental Cleanup appropriation.
Conversion.--The Committee recommends $27,400,000 for
national laboratory support of domestic Mo-99 production using
low enriched uranium (LEU) targets and international agreements
for the conversion of research reactors to LEU fuels. Funds
requested for the development of LEU fuels for U.S. and DOE-
owned nuclear reactors are provided within Defense Nuclear
Nonproliferation R&D, as in fiscal year 2017. The
recommendation does not include $19,600,000 requested to
support the final cost share amounts for Mo-99 projects since
sufficient unencumbered prior-year funds exist. While the NNSA
continues to request close-out of the domestic Mo-99
development program, the Committee encourages the NNSA to
reconsider competitively awarding new cooperative agreements
given the limited success of the NNSA's program in establishing
a secure domestic producer that does not use HEU.
Material Disposition.--The Committee recommends $1,000,000
for the Uranium Lease and Takeback Program. The recommendation
does not include $24,000,000 requested to conduct additional
planning activities for the dilute and dispose alternative to
the construction of the Mixed Oxide Fuel Fabrication (MOX)
facility. The Congress has already appropriated $20,000,000 in
prior years to develop higher fidelity lifecycle cost estimates
and is awaiting the results of those efforts.
MOX Fuel Fabrication Facility.--The Committee recommends
$340,000,000. The recommendation provides sufficient funding to
sustain the current pace of construction on the MOX facility in
fiscal year 2018 and prohibits the use of MOX funding to
terminate the project while the Congress is considering an
alternative approach for disposing of these materials. Within
available funds, $5,000,000 is provided for a federal owner's
agent to provide independent and external assistance to the
NNSA in providing oversight to the contractor and to ensure
efficient execution of the MOX project.
18-D-150 Surplus Plutonium Disposition Project, SRS.--The
recommendation includes no funds for this project. DOE does not
yet have the legal or regulatory basis for diluting 34 metric
tons of plutonium at Savannah River and disposing of that
material in the Waste Isolation Pilot Plant (WIPP). In
addition, DOE is specifically prohibited by 50 U.S.C 2566 from
transferring plutonium into South Carolina until MOX production
objectives are met. The Committee will not consider this
proposal as an alternative to MOX until the NNSA submits a
substantive programmatic proposal that includes: (1)
legislative modifications needed to the WIPP Land Withdrawal
Act and to statutory requirements for the disposition of
weapons-usable plutonium at the Savannah River Site; (2) safety
and environmental analyses that demonstrate that the 34 metric
tons can be safely disposed of at WIPP, as required by the
National Environmental Policy Act (NEPA); (3) detailed cost and
schedule estimates that have been independently verified; and
(4) a plan for negotiations with impacted states and the
Russian Federation on modifications to the Plutonium Management
Disposition Agreement if U.S. participation in the agreement is
still in the interest of U.S. national security.
18-D-150 Plutonium Removal Project, SRS.--The Committee
recognizes the NNSA's need to begin removing plutonium from the
State of South Carolina and recommends $9,000,000 to dispose of
up to 6 metric tons of plutonium that cannot be used for MOX
fuel for which DOE has issued a record of decision and has
obtained regulatory concurrence for disposal in WIPP. Not later
than 30 days after the enactment of this Act, the NNSA shall
provide to the Committees on Appropriations of both Houses of
Congress a plan for removing from the State of South Carolina
an amount of defense plutonium or defense plutonium materials
equal to the amount of defense plutonium or defense plutonium
materials transferred to the State after April 15, 2002.
Defense Nuclear Nonproliferation Research and Development
(DNN R&D).--The Committee recommends $523,595,000. As in fiscal
year 2017, the recommendation includes funds for LEU fuels
development for U.S. high performance research reactors within
DNN R&D to better align research and development-related
activities with the resident expertise for managing a long term
development program within the Office of Defense Nuclear
Nonproliferation, and to respond to concerns detailed in a
National Academies study regarding the complexity of technical
issues that must be overcome to convert those reactors over the
next 15 years. The amount for LEU fuels development also
includes funding to develop LEU fuel for the TREAT reactor.

NUCLEAR COUNTERTERRORISM AND INCIDENT RESPONSE

The NNSA's Nuclear Counterterrorism and Incident Response
programs respond to and mitigate nuclear and radiological
incidents worldwide in order to defend the nation from the
threat of nuclear terrorism. The Committee recommends
$277,360,000.

LEGACY CONTRACTOR PENSIONS

The Committee provides $40,950,000 for payments into the
legacy University of California contractor employee defined
benefit pension plans.

Naval Reactors

(INCLUDING TRANSFER OF FUNDS)

Appropriation, 2017................................... $1,420,120,000
Budget estimate, 2018................................. 1,479,751,000
Recommended, 2018..................................... 1,486,000,000
Comparison:
Appropriation, 2017............................... +65,880,000
Budget estimate, 2018............................. +6,249,000

The Naval Reactors (NR) program is responsible for all
aspects of naval nuclear propulsion from technology development
through reactor operations to ultimate reactor plant disposal.
The program provides for the design, development, testing, and
evaluation of improved naval nuclear propulsion plants and
reactor cores. The recommendation fully funds the request to
develop the Columbia-Class submarine, previously identified as
the Ohio-replacement submarine, and to refuel the S8G
prototype, which is closely linked to the Columbia-Class
submarine.
Infrastructure Reprioritization.--The Committee recommends
a total of $619,382,000 to support infrastructure needs of
Naval Reactors sites, an increase of $21,400,000 above fiscal
year 2017 and $7,798,000 above the budget request. The
recommendation reprioritizes infrastructure funds to prevent
delays to plans to recapitalize NR's aging spent fuel
infrastructure. NR's budget request does not adequately plan
sufficient carryover to support the Idaho Spent Fuel Handling
Recapitalization Project into fiscal year 2019. Rather, the
project plans would have drawn down contingency balances in
fiscal year 2018 and added an unacceptable amount of risk to
completing the project on time and within budget. The
recommendation includes funding for environmental remediation
and laboratory facility regulation and compliance activities
within funding for Naval Reactors Operations and Infrastructure
at the levels planned for those activities in the fiscal year
2017 Future Years Nuclear Security Plan.
Naval Reactors Development.--Within amounts for Naval
Reactors Development, $82,500,000 is provided for Advanced Test
Reactor Operations.

Federal Salaries and Expenses

Appropriation, 2017................................... $390,000,000
Budget estimate, 2018................................. 418,595,000
Recommended, 2018..................................... 412,595,000
Comparison:
Appropriation, 2017............................... +22,595,000
Budget estimate, 2018............................. -6,000,000

The Federal Salaries and Expenses account provides
corporate planning and oversight for Defense Programs, Defense
Nuclear Nonproliferation, and Naval Reactors, including the
NNSA field offices in New Mexico, Nevada, and California.

ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

Defense Environmental Cleanup

Appropriation, 2017................................... $5,405,000,000
Budget estimate, 2018................................. 5,537,186,000
Recommended, 2018..................................... 5,405,000,000
Comparison:
Appropriation, 2017............................... - - -
Budget estimate, 2018............................. -132,186,000

The Defense Environmental Cleanup account provides funding
for identifying and reducing risks and managing waste at sites
where the nation carried out defense-related nuclear research
and production activities that resulted in radioactive,
hazardous, and mixed waste contamination requiring remediation,
stabilization, or some other cleanup action.
The Office of Environmental Management (EM) continues to
request changes to the congressional budget structure without
obtaining concurrence in advance from the Congress on its
proposals, despite specific direction to the contrary in prior
years. In addition, the budget request proposes large increases
in administrative-type activities and cuts to site cleanup
funds. The recommendation restores cuts proposed to cleanup
activities at Hanford, Idaho, Los Alamos, and Oak Ridge and
redistributes costs within site funding totals for site-
specific safeguards and security activities. The Committee
recommendation for safeguards and security within each site
includes full funding amounts requested for site-specific cyber
security needs. Additionally, Savannah River shall continue to
receive safeguard and security funds through the NNSA and EM
indirect cost pools, as in previous years. The recommendation
does not include an increase requested for the DOE working
capital fund and funding is provided up to the level of and in
the budget lines provided for these costs in fiscal year 2017.
Closure and Other Sites Administration includes funding for
administration costs, including safeguards and security costs,
of other EM cleanup sites that are traditionally accounted for
within Defense Environmental Cleanup.
Excess Facilities.--The budget request proposed a new
program line to allow for disposition of excess facilities, but
the request did not propose a list of the facilities and cost
estimates. The recommendation includes funding above the budget
request for individual EM sites to accelerate known demolition
projects and initiate new transfers to EM, including
$35,000,000 within Oak Ridge Nuclear Facility D&D to support
the demolition of the Y-12 Biology Complex, $30,000,000 within
NNSA Sites and Nevada Off-sites for demolition of the B280 Pool
Type Reactor at Lawrence Livermore National Laboratory, and up
to $10,000,000 above the budget request within the Idaho Site
to support the demolition of the EBR-II Reactor Dome.
Closure and Other Administration Costs.--The recommendation
includes funding requested for administration of DOE closure
sites and administration of safeguards and security activities,
including cybersecurity, for the West Valley Demonstration
Project and the gaseous diffusion uranium enrichment sites.
Waste Treatment Plant (WTP).--To demonstrate cleanup
progress while the Department resolves safety-related design
issues of the WTP project, DOE is implementing an alternative
direct feed approach for the project. However, the budget
request provides no specific information regarding ultimate
costs of the project or how the new project plans will meet new
schedule milestones for direct feed, despite finalizing a new
performance baseline to manage this scope. Rather, the budget
request for construction activities is not transparent, appears
to be set at an arbitrary amount, and is not reflective of
actual project needs. The recommendation provides $643,000,000
under 18-D-16 Waste Treatment Plant LBL/Direct Feed Low
Activity Waste to fully support planned baseline activities for
direct feed, consistent with the funding plans of its recently
completed performance baseline and $14,000,000 above the budget
request. Other construction activities that support the Waste
Treatment Plant project are provided separately, including
funding for maintenance and design resolution of the High-Level
Waste facility and the Pretreatment Facility and for
construction of the Low Activity Waste Pretreatment System. The
Department is directed to discontinue the practice of
requesting an arbitrary $690,000,000 under activities called
the Waste Treatment Plant (WTP) project and to report full
project details that reflect project execution plans in future
budget requests.
Hanford Site Management.--Congress directed the
establishment of the Office of River Protection site office and
set a termination date for September 30, 2019. The Department
is directed to provide to the Committees on Appropriations of
both Houses of Congress a report on the impacts for reaching
the legislative sunset date of the Office of River Protection
that includes an assessment of whether the Department can carry
out its commitments to clean up the Hanford Site under the Tri-
party Agreement with a single site office and whether
consolidating the two site offices could streamline management,
enhance accountability, and eliminate duplicative expenses.
Idaho Site.--Within available funds for Idaho cleanup and
waste disposition, $5,000,000 is for advanced retrieval and
disposition techniques for remote handled mixed low-level
radioactive waste. Not later than 60 days after the enactment
of this Act, the Department shall provide to the Committees on
Appropriations of both Houses of Congress a report on the
feasibility and benefits of expanding the use of the Advanced
Mixed Waste Treatment Facility to serve as a national or
regional transuranic waste processing center.
Oak Ridge Reservation Project Accelerations.--The
recommendation includes $52,300,000 to expedite plans to
dispose of U233 at the Oak Ridge Reservation, $17,100,000 for
construction of the Outfall 200 Mercury Treatment Facility, and
$10,000,000 for construction of the On-site Waste Disposal
Facility.
Savannah River Site.--Within available funds for Site Risk
Management, the recommendation includes $159,978,000 for
environmental cleanup activities to support compliance
milestones and $3,000,000 to support the disposition of spent
fuel from the High Flux Isotope Reactor. None of the funds
provided within the Savannah River Site may be used to assume
costs previously charged to the NNSA via the site's indirect
cost pools.
Waste Isolation Pilot Plant (WIPP).--A recent report of the
Office of Enterprise Assessments indicated that DOE performance
metrics for roof bolting and other rehabilitation activities
are not adequate to provide measures for safe, effective ground
control. Additionally, large portions of the underground are no
longer considered safe for entry and must be permanently closed
due to ineffective ground control measures over the last two
years. Because DOE planned to use these areas for waste
disposal, new areas must be mined to provide disposal capacity
and the costs of full recovery continue to rise. Not later than
60 days after the enactment of this Act, the Department shall
provide to the Committees on Appropriations of both Houses of
Congress a plan for maintaining the underground with clear
performance metrics for roof bolting and other ground control
rehabilitation activities, including estimates of the funding
requirements to fully support the plan. Metrics should
distinguish activities needed to close out existing panels with
those needed for maintenance of active waste disposal pathways,
secondary areas, and new mining activities.
Program Support.--The Committee is concerned about the
antiquated state of EM headquarters planning and budgeting
systems to analyze EM's complex portfolio of projects. The
Department is directed to update its strategic planning tools
to utilize modern, dynamic software that permits real-time and
strategic analysis of resource requirements, funding variances,
regulatory requirements, and scope changes to better ensure
taxpayers return on investments in the EM program.
Technology Development.--Within funding for technology
development and deployment, $4,000,000 is provided for the
National Spent Nuclear Fuel Program to address issues related
to storing, transporting, processing, and disposing of DOE-
owned and managed spent nuclear fuel. The Committee encourages
EM to conduct merit-based funding awards for technology
development and to ensure the funds provided are competitively
awarded and managed by DOE Headquarters to address long-term
cleanup mission needs.

Other Defense Activities

Appropriation, 2017................................... $784,000,000
Budget estimate, 2018................................. 815,512,000
Recommended, 2018..................................... 825,000,000
Comparison:
Appropriation, 2017............................... +41,000,000
Budget estimate, 2018............................. +9,488,000

The Other Defense Activities account provides funding for
the Office of Environment, Health, Safety and Security; the
Office of Independent Enterprise Assessments; the Office of
Legacy Management; Specialized Security Activities; Defense
Related Administrative Support; and the Office of Hearings and
Appeals.
Environment, Health, Safety and Security.--The
recommendation includes no funding for processing security
clearances of headquarters personnel that are not employees of
the Office of Environment, Health, Safety and Security,
consistent with congressional direction in the fiscal year 2017
Act.
The Committee is concerned that the Office of Environment,
Health, Safety and Security (EHSS) is funding assessments and
technology development to upgrade security systems at non-
defense facilities of the Strategic Petroleum Reserve and the
Power Marketing Administrations. Funding within EHSS is
duplicative of funds also provided for physical security in
those program accounts, and the Department is directed to
consolidate these costs within funds provided for physical
security systems at program sites.

Defense Nuclear Waste Disposal

Appropriation, 2017................................... $- - -
Budget estimate, 2018................................. 30,000,000
Recommended, 2018..................................... 30,000,000
Comparison:
Appropriation, 2017............................... +30,000,000
Budget estimate, 2018............................. - - -

The Defense Nuclear Waste Disposal appropriation was
established by the Congress for activities related to the
disposal of defense high-level waste from the Department's
atomic energy defense activities in lieu of payment from the
Department of Energy into the Nuclear Waste Fund.

POWER MARKETING ADMINISTRATIONS

Management of the federal power marketing functions was
transferred from the Department of the Interior to the
Department of Energy in the Department of Energy Organization
Act of 1977 (Public Law 95-91). These functions include the
power marketing activities authorized under section 5 of the
Flood Control Act of 1944 and all other functions of the
Bonneville Power Administration, the Southeastern Power
Administration, the Southwestern Power Administration, and the
power marketing functions of the Bureau of Reclamation that
have been transferred to the Western Area Power Administration.
All four power marketing administrations give preference in
the sale of their power to publicly-owned and cooperatively-
owned utilities. Operations of the Bonneville Power
Administration are financed principally under the authority of
the Federal Columbia River Transmission System Act (Public Law
93-454). Under this Act, the Bonneville Power Administration is
authorized to use its revenues to finance the costs of its
operations, maintenance, and capital construction, and to sell
bonds to the Treasury if necessary to finance any additional
capital program requirements.
Beginning in fiscal year 2011, power revenues from the
Southeastern, Southwestern, and Western Area Power
Administrations, which were previously classified as mandatory
offsetting receipts, were reclassified as discretionary
offsetting collections to directly offset annual expenses. The
capital expenses of Southwestern and Western Area Power
Administrations are appropriated annually.
Beginning this fiscal year, the Congressional Budget Office
(CBO) changed its scoring of the power marketing
administrations (PMAs). The change stemmed from information on
execution of language regarding purchase power and wheeling
expenses and offsetting collections included in this bill each
year. To date, the PMAs have been extremely slow to provide
additional financial information. To address the increased
score in the short term, the recommendation reduces the maximum
level for purchase power and wheeling below the budget request.
The Committee directs the PMAs to provide all information
requested by the Committee or CBO, without exception, in order
to accurately reflect expenditures and resolve scoring issues
appropriately.

Bonneville Power Administration Fund

The Bonneville Power Administration (BPA) is the Department
of Energy's marketing agency for electric power in the Pacific
Northwest. Bonneville provides electricity to a 300,000 square
mile service area in the Columbia River drainage basin.
Bonneville markets the power from federal hydropower projects
in the Northwest, as well as power from non-federal generating
facilities in the region, and exchanges and markets surplus
power with Canada and California.
The Committee encourages the Corps of Engineers and Bureau
of Reclamation to work with the BPA on efforts to drive down
costs and promote BPA's long-term competitiveness. Assuring BPA
competitiveness is important not only for BPA's operation, but
to ensure Treasury repayment and assist the Corps and
Reclamation in meeting their core functions (including
navigation, flood control, water supply, and irrigation). The
Committee is pleased that the operating agencies have taken
important short-term steps on cost control and encourages
efforts to make long-term improvements. The Committee
encourages the Corps and Bureau to work with BPA to optimize
investment in the federal hydropower system, including
prioritization of investments, effective project management
approaches such as efficient procurement of equipment and
services, and ensuring the cost effectiveness of any proposed
higher capital spending levels for hydropower facilities. In
addition, the Committee urges the operating agencies to
strongly consider matters such as: (1) a more flexible
workforce and business-oriented organization; (2) increased
reliance on system automation as appropriate; (3) strategies to
get labor costs stable or reduced long term; and (4) further
review of costs of conducting the new environmental impact
statement for Columbia River System Operations to determine
what costs are truly incremental.

Operation and Maintenance, Southeastern Power Administration

Appropriation, 2017................................... $- - -
Budget estimate, 2018................................. - - -
Recommended, 2018..................................... - - -
Comparison:
Appropriation, 2017............................... - - -
Budget estimate, 2018............................. - - -

The Southeastern Power Administration (SEPA) markets
hydroelectric power produced at 22 Corps Projects in 11 states
in the southeast. Southeastern does not own or operate any
transmission facilities, so it contracts to ``wheel'' its power
using the existing transmission facilities of area utilities.

Operation and Maintenance, Southwestern Power Administration

Appropriation, 2017................................... $11,057,000
Budget estimate, 2018................................. 11,400,000
Recommended, 2018..................................... 11,400,000
Comparison:
Appropriation, 2017............................... +343,000
Budget estimate, 2018............................. - - -

The Southwestern Power Administration (SWPA) markets
hydroelectric power produced at 24 Corps projects in the six-
state area of Arkansas, Kansas, Louisiana, Missouri, Oklahoma,
and Texas. SWPA operates and maintains 1,380 miles of
transmission lines, along with supporting substations and
communications sites.

Construction, Rehabilitation, Operation and Maintenance, Western Area
Power Administration

Appropriation, 2017................................... $95,581,000
Budget estimate, 2018................................. 93,372,000
Recommended, 2018..................................... 93,372,000
Comparison:
Appropriation, 2017............................... -2,209,000
Budget estimate, 2018............................. - - -

The Western Area Power Administration is responsible for
marketing the electric power generated by the Bureau of
Reclamation, the Corps, and the International Boundary and
Water Commission. Western also operates and maintains a system
of transmission lines nearly 17,000 miles long. Western
provides electricity to 15 western states over a service area
of 1.3 million square miles.
The Committee recommendation reduces the level for annual
expenses by $35,410,000 below the budget request. This
reduction reflects customer preference to fund the annual
operation and maintenance program for the Parker-Davis and
Intertie projects using Western's prepayment authority, rather
than Western's net zero authority.

Falcon and Amistad Operating and Maintenance Fund

Appropriation, 2017................................... $232,000
Budget estimate, 2018................................. 228,000
Recommended, 2018..................................... 228,000
Comparison:
Appropriation, 2017............................... -4,000
Budget estimate, 2018............................. - - -

Falcon Dam and Amistad Dam are two international water
projects located on the Rio Grande River between Texas and
Mexico. Power generated by hydroelectric facilities at these
two dams is sold to public utilities through the Western Area
Power Administration. The Foreign Relations Authorization Act
for Fiscal Years 1994 and 1995 created the Falcon and Amistad
Operating and Maintenance Fund to defray the costs of
operation, maintenance, and emergency activities. The Fund is
administered by the Western Area Power Administration for use
by the Commissioner of the U.S. Section of the International
Boundary and Water Commission.
The budget request includes a proposal for authority to
accept contributed funds in fiscal year 2018 for use in
fulfilling duties associated with the Falcon and Amistad Dams.
This authority would be equivalent to the authority used
throughout the Western Area Power Administration to secure
alternative financing. The Committee includes this proposal.
The Committee continues to hear concerns that additional
infrastructure investments are necessary at these dams. Western
is directed to coordinate with the International Boundary and
Water Commission to determine a plan for addressing any needed
improvements and brief the Committee not later than 90 days
after the enactment of this Act on progress towards finalizing
a plan.

Federal Energy Regulatory Commission

SALARIES AND EXPENSES

Appropriation, 2017................................... $346,800,000
Budget estimate, 2018................................. 367,600,000
Recommended, 2018..................................... 367,600,000
Comparison:
Appropriation, 2017............................... +20,800,000
Budget estimate, 2018............................. - - -

REVENUES

Appropriation, 2017................................... $-346,800,000
Budget estimate, 2018................................. -367,600,000
Recommended, 2018..................................... -367,600,000
Comparison:
Appropriation, 2017............................... -20,800,000
Budget estimate, 2018............................. - - -

The Committee recommendation for the Federal Energy
Regulatory Commission (FERC) is $367,600,000, the same as the
budget request. Revenues for FERC are established at a rate
equal to the budget authority, resulting in a net appropriation
of $0.
The Committee directs FERC to analyze electricity
transmission investment incentives in rate treatments to
determine ways to encourage efficient investment for critical
infrastructure security. FERC shall report this analysis to the
Committees on Appropriations of both Houses of Congress not
later than 180 days after the enactment of this Act.

COMMITTEE RECOMMENDATION

The Committee's detailed funding recommendations for
programs in Title III are contained in the following table.

*GENERAL PROVISIONS--DEPARTMENT OF ENERGY

(INCLUDING TRANSFER OF FUNDS)

The bill includes a provision that prohibits the use of
funds provided in this title to initiate requests for
proposals, other solicitations or arrangements for new programs
or activities that have not yet been approved and funded by the
Congress; requires notification or a report for certain funding
actions; prohibits funds to be used for certain multi-year
``Energy Programs'' activities without notification; prohibits
the obligation or expenditure of funds provided in this title
through a reprogramming of funds except in certain
circumstances; and permits the transfer and merger of
unexpended balances of prior appropriations with appropriation
accounts established in this bill.
The bill continues a provision that authorizes intelligence
activities of the Department of Energy for purposes of section
504 of the National Security Act of 1947.
The bill continues a provision that prohibits the use of
funds in this title for capital construction of high hazard
nuclear facilities, unless certain independent oversight is
conducted.
The bill continues a provision that prohibits the use of
funds provided in this title to approve critical decision-2 or
critical decision-3 for certain construction projects, unless a
separate independent cost estimate has been developed for that
critical decision.
The bill continues a provision restricting certain
activities in the Russian Federation.
The bill includes a provision regarding authority to
release refined petroleum product from the Strategic Petroleum
Reserve (SPR). Instead of engaging the Congress on developing
appropriate legislation for a regional refined petroleum
product reserve, the previous Administration chose to establish
the Northeast Gasoline Supply Reserve (NGSR) under the existing
authorities of the SPR. As such, the NGSR is subject to
national impact thresholds for releases, making it
operationally ineffective as a regional product reserve. The
Committee on Energy and Commerce of the House of
Representatives is evaluating the proper configuration of the
SPR in light of current circumstances. This evaluation will be
informed, in part, by an assessment of the SPR being undertaken
by the Government Accountability Office. While this work is
ongoing, this bill includes temporary authority to ensure the
operational effectiveness of the NGSR.
The bill includes a provision regarding a drawdown and sale
of crude oil from the Strategic Petroleum Reserve.
The bill continues a provision regarding management of the
Strategic Petroleum Reserve.
The bill includes a provision limiting the amount of funds
to be used for the working capital fund.

TITLE IV--INDEPENDENT AGENCIES

Appalachian Regional Commission

Appropriation, 2017................................... $152,000,000
Budget estimate, 2018................................. 26,660,000
Recommended, 2018..................................... 130,000,000
Comparison:
Appropriation, 2017............................... -22,000,000
Budget estimate, 2018............................. +103,340,000

The Appalachian Regional Commission (ARC) is a regional
economic development agency established in 1965 by the
Appalachian Regional Development Act (P.L. 89-4). It is
composed of the governors of the 13 Appalachian States and a
federal co-chair appointed by the President. Each year, the ARC
provides funding for several hundred projects in the
Appalachian Region in areas such as business development,
education and job training, telecommunications, infrastructure,
community development, housing, and transportation.
To diversify and enhance regional business development,
$10,000,000 is provided to continue the program of high-speed
broadband deployment in distressed counties within the Central
Appalachian region that have been most negatively impacted by
the downturn in the coal industry. This funding shall be in
addition to the 30 percent directed to distressed counties.
Within available funds, the Committee directs $50,000,000
for activities in support of the POWER+ Plan.
The ARC targets 50 percent of its funds to distressed
counties or distressed areas in the Appalachian region. The
Committee continues to believe this should be the primary focus
of the ARC. The recommendation does not include funds to shut
down the ARC.

Defense Nuclear Facilities Safety Board

SALARIES AND EXPENSES

Appropriation, 2017................................... $30,872,000
Budget estimate, 2018................................. 30,600,000
Recommended, 2018..................................... 30,600,000
Comparison:
Appropriation, 2017............................... -272,000
Budget estimate, 2018............................. - - -

The Defense Nuclear Facilities Safety Board (DNFSB) was
created by the fiscal year 1989 National Defense Authorization
Act. The Board, composed of five members appointed by the
President, provides advice and recommendations to the Secretary
of Energy regarding public health and safety issues at the
Department's defense nuclear facilities. The DNFSB is
responsible for reviewing and evaluating the content and
implementation of the standards relating to the design,
construction, operation, and decommissioning of the Department
of Energy's defense nuclear facilities.

Delta Regional Authority

SALARIES AND EXPENSES

Appropriation, 2017................................... $25,000,000
Budget estimate, 2018................................. 2,500,000
Recommended, 2018..................................... 15,000,000
Comparison:
Appropriation, 2017............................... -10,000,000
Budget estimate, 2018............................. +12,500,000

The Delta Regional Authority (DRA) is a federal-state
partnership established by the Delta Regional Authority Act of
2000 (P.L. 106-554) that serves a 252-county/parish area in an
eight-state region near the mouth of the Mississippi River. Led
by a federal co-chair and the governors of each participating
state, the DRA is designed to remedy severe and chronic
economic distress by stimulating economic development and
fostering partnerships that will have a positive impact on the
region's economy. The DRA seeks to help local communities
leverage other federal and state programs that are focused on
basic infrastructure development, transportation improvements,
business development, and job training services. Under federal
law, at least 75 percent of appropriated funds must be invested
in distressed counties and parishes, with 50 percent of the
funds for transportation and basic infrastructure improvements.
The recommendation does not include funds to shut down the
DRA.

Denali Commission

Appropriation, 2017................................... $15,000,000
Budget estimate, 2018................................. 7,300,000
Recommended, 2018..................................... 11,000,000
Comparison:
Appropriation, 2017............................... -4,000,000
Budget estimate, 2018............................. +3,700,000

The Denali Commission is a regional development agency
established by the Denali Commission Act of 1998 (P.L. 105-277)
to provide critical utilities, infrastructure, health services,
and economic support throughout Alaska. To ensure that local
communities have a stake in Commission-funded projects, local
cost share requirements for construction and equipment have
been established for both distressed and non-distressed
communities.
The recommendation does not include funds to shut down the
Denali Commission.

Northern Border Regional Commission

Appropriation, 2017................................... $10,000,000
Budget estimate, 2018................................. 850,000
Recommended, 2018..................................... 5,000,000
Comparison:
Appropriation, 2017............................... -5,000,000
Budget estimate, 2018............................. +4,150,000

The Food, Conservation, and Energy Act of 2008 (P.L.110-
234) authorized the establishment of the Northern Border
Regional Commission as a federal-state partnership intended to
address the economic development needs of distressed portions
of the four-state region of Maine, New Hampshire, Vermont, and
New York.
The recommendation does not include funds to shut down the
Northern Border Regional Commission.

Southeast Crescent Regional Commission

Appropriation, 2017................................... $250,000
Budget estimate, 2018................................. - - -
Recommended, 2018..................................... 250,000
Comparison:
Appropriation, 2017............................... - - -
Budget estimate, 2018............................. +250,000

The Food, Conservation, and Energy Act of 2008 (P.L. 110-
234) authorized the establishment of the Southeast Crescent
Regional Commission as a federal-state partnership intended to
address the economic development needs of distressed portions
of the seven-state region in the southeastern United States not
already served by a regional development agency.

Nuclear Regulatory Commission

SALARIES AND EXPENSES

Appropriation, 2017................................... $905,000,000
Budget estimate, 2018................................. 939,137,000
Recommended, 2018..................................... 939,137,000
Comparison:
Appropriation, 2017............................... +34,137,000
Budget estimate, 2018............................. - - -

REVENUES

Appropriation, 2017................................... $-794,580,000
Budget estimate, 2018................................. -803,409,000
Recommended, 2018..................................... -779,829,000
Comparison:
Appropriation, 2017............................... +14,751,000
Budget estimate, 2018............................. +23,580,000

NET APPROPRIATION

Appropriation, 2017................................... $110,420,000
Budget estimate, 2018................................. 135,728,000
Recommended, 2018..................................... 159,308,000
Comparison:
Appropriation, 2017............................... +48,888,000
Budget estimate, 2018............................. +23,580,000

The Committee recommendation for the Nuclear Regulatory
Commission (NRC) provides the following amounts:

(Dollars in thousands)
----------------------------------------------------------------------------------------------------------------
FY 2017 FY 2018
Account enacted request Cmte. rec.
----------------------------------------------------------------------------------------------------------------
Nuclear Reactor Safety.......................................... $462,300 $466,655 $466,655
Nuclear Materials and Waste Safety.............................. 113,700 113,145 113,145
Decommissioning and Low-Level Waste............................. 27,200 27,980 27,980
Integrated University Program................................... 15,000 - - - 15,000
Yucca licensing................................................. - - - 30,000 30,000
Corporate Support............................................... 309,800 301,357 301,357
-----------------------------------------------
TOTAL, Program Level........................................ 928,000 939,137 954,137
Savings and Carryover........................................... -23,000 - - - -15,000
-----------------------------------------------
TOTAL....................................................... 905,000 939,137 939,137
----------------------------------------------------------------------------------------------------------------

The recommendation includes $15,000,000 in savings for
fiscal year 2018 that was not included in the budget request.
The Committee directs the Commission to apply these savings in
a manner that continues to ensure the protection of public
health and safety and maintains the effectiveness of the
current inspection program.
Within available funds, not more than $9,500,000 is
included for salaries, travel, and other support costs for the
Office of the Commission. These salaries and expenses shall
include only salaries and benefit and travel costs, and not
general and administrative and infrastructure costs. The
Committee directs that these funds are to be jointly managed by
the Commissioners, and the bill requires that the use and
expenditure of these salaries and expenses shall only be by a
majority vote of the Commission. The NRC shall continue to
include a breakout and explanation of the Commission salaries
and expenses in its annual budget requests. If the Commission
wishes to change the composition of the funds requested for its
salaries and expenses in future years, it must do so in an
annual budget request or through a reprogramming.
The recommendation directs $30,000,000 to continue
adjudication of the Yucca Mountain license application.
Integrated University Program.--The Committee
recommendation includes $15,000,000 to provide financial
support for the university education programs, as the
Commission continues to be reliant on a pipeline of highly
trained nuclear engineers and scientists and benefits
substantially from this university program. Not less than
$5,000,000 of this amount is to be used for grants to support
research projects that do not align with programmatic missions,
but are critical to maintaining the discipline of nuclear
science and engineering.
Project Aim.--The Committee commends the NRC for the
progress made to date on the Project Aim initiative. The NRC's
twin workforce goals under this initiative--of correctly sizing
the agency staff while also increasing workforce agility--will
enhance the NRC's ability to address emergent safety issues in
a timely way. However, the dynamic environment of the nuclear
industry will continue to challenge the NRC's ability to
forecast needed competencies and staffing levels. To address
this, the NRC has undertaken the Enhanced Strategic Workforce
Planning initiative. While this effort is meritorious, the NRC
acknowledges that this initiative will not incorporate the
efficiency gains of process improvements already implemented
under Project Aim and consequently could result in
overestimates of needed FTEs. The NRC must continue to review
the organizational structure of the agency to ensure that staff
and resources are aligned to support estimated workload
requirements and that the estimates themselves reflect recent
efficiency gains. The NRC is directed to provide to the
Committees on Appropriations of both Houses of Congress by
February 5, 2018, a report on the actions taken to improve the
fidelity of agency estimates of necessary FTE levels and to
optimize the structure of the agency over the next five years,
including a review of the size, function, and number of program
offices and regional offices.
Risk-Informed Activities.--The Committee notes that the
Commission's existing policy statement on the use of
probabilistic risk assessment (PRA) finds that the many
potential applications of this risk tool, if implemented
broadly in nuclear regulatory activities, ``would promote
regulatory stability and efficiency'' and concludes that the
use of probabilistic insights ``should be increased to the
extent supported by the state-of-the-art.'' The Committee
agrees with this policy and supports sustained progress by the
NRC in continuing to apply risk analysis tools to identify
areas where its regulations may be insufficiently protective
and where they may be needlessly restrictive. Given the
Commission's recent direction to agency staff reaffirming the
Commission's interest in sustained progress in the
implementation of this policy and directing a suite of follow-
on actions, the Commission is directed to submit to the
Committees on Appropriations of both Houses of Congress not
later than 120 days after enactment of this Act a report that
provides its plan for broadening the application of risk
assessment tools across the agency's activities; for improving
the realism of PRA information used in regulatory decision-
making; for establishing a more risk-informed licensing,
inspection, and oversight process; and for training its
technical staff more thoroughly in the use of these approaches.
Rulemaking.--The Commission needs to continue to
aggressively monitor the rulemaking process and also ensure
that the Committee receives accurate reports on rulemaking
activities. The Commission shall list all rulemaking activities
planned, to include their priority, schedule, and actions taken
to adhere to the backfit rule, in the annual budget request and
the semi-annual report to Congress on licensing and regulatory
activities.
Digital Instrumentation and Control.--The future of
commercial nuclear power depends, in part, on the NRC's ability
to keep pace with innovation and technological developments.
The NRC has demonstrated its capacity to adapt to new
technology and innovation in its decision to issue a
construction license for a first-of-a-kind medical isotope
production facility. In a similar vein, the NRC should endeavor
to ensure that it establishes an efficient, reliable, and
predictable licensing process for power reactors to transition
from analog to digital instrumentation and control systems for
safety-related applications.
Subsequent License Renewal.--The Commission is directed to
include in the fiscal year 2019 budget request the actions
taken to be prepared to effectively and efficiently review any
subsequent license renewal applications.
Reporting Requirements.--The Committee directs the
Commission to continue to provide quarterly reports on
licensing goals and right-sizing commitments, as described in
the explanatory statement for P.L. 114-113.

OFFICE OF INSPECTOR GENERAL

GROSS APPROPRIATION

Appropriation, 2017................................... $12,129,000
Budget estimate, 2018................................. 12,859,000
Recommended, 2018..................................... 12,859,000
Comparison:
Appropriation, 2017............................... +730
Budget estimate, 2018............................. - - -

REVENUES

Appropriation, 2017................................... $-10,044,000
Budget estimate, 2018................................. -10,555,000
Recommended, 2018..................................... -10,555,000
Comparison:
Appropriation, 2017............................... -511
Budget estimate, 2018............................. - - -

NET APPROPRIATION

Appropriation, 2017................................... $2,085,000
Budget estimate, 2018................................. 2,304,000
Recommended, 2018..................................... 2,304,000
Comparison:
Appropriation, 2017............................... +219
Budget estimate, 2018............................. - - -

The Committee has included $1,131,000 within this
appropriation for the Defense Nuclear Facilities Safety Board
for Inspector General services from the Nuclear Regulatory
Commission Inspector General.

Nuclear Waste Technical Review Board

SALARIES AND EXPENSES

Appropriation, 2017................................... $3,600,000
Budget estimate, 2018................................. 3,600,000
Recommended, 2018..................................... 3,600,000
Comparison:
Appropriation, 2017............................... - - -
Budget estimate, 2018............................. - - -

The Nuclear Waste Technical Review Board (NWTRB) was
established by the 1987 amendments to the Nuclear Waste Policy
Act of 1982 to provide independent technical oversight of the
Department of Energy's nuclear waste disposal program. The
Committee expects the NWTRB to continue its active engagement
with the Department and the Nuclear Regulatory Commission on
issues involving nuclear waste disposal.

GENERAL PROVISIONS--INDEPENDENT AGENCIES

The bill continues a provision requiring the Nuclear
Regulatory Commission to fully comply with Congressional
requests for information.
The bill continues a provision regarding the circumstances
in which the Nuclear Regulatory Commission may reprogram funds.

TITLE V--GENERAL PROVISIONS

The bill continues a provision that prohibits the use of
funds provided in this Act to, in any way, directly or
indirectly influence congressional action on any legislation or
appropriation matters pending before the Congress, other than
to communicate to Members of Congress as described in section
1913 of title 18, United States Code.
The bill continues a provision consolidating the transfer
authorities into and out of accounts funded by this Act. No
additional transfer authority is implied or conveyed by this
provision. For the purposes of this provision, the term
``transfer'' shall mean the shifting of all or part of the
budget authority in one account to another.
The bill continues a provision prohibiting funds in
contravention of E.O. 12898 of February 11, 1994, regarding
environmental justice.
The bill includes a provision prohibiting funds in this Act
from being used to maintain or establish computer networks
unless such networks block the viewing, downloading, or
exchange of pornography.
The bill includes a provision prohibiting the use of funds
to further implementation of components of the National Ocean
Policy developed under E.O. 13547.
The bill includes a provision prohibiting the use of funds
for the removal of any federally owned or operated dam unless
the removal was previously authorized by Congress.
The bill continues a provision prohibiting funds in this
Act from being used to close the Yucca Mountain license
application process or for actions that would remove the
possibility that Yucca Mountain might be an option in the
future.
The bill includes a provision regarding the spending
reduction account.

HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS

The following items are included in accordance with various
requirements of the Rules of the House of Representatives.

Statement of General Performance Goals and Objectives

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the following is a statement of
general performance goals and objectives for which this measure
authorizes funding:
The Committee on Appropriations considers program
performance, including a program's success in developing and
attaining outcome-related goals and objectives, in developing
funding recommendations.

Transfer of Funds

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the
House of Representatives, the following is submitted describing
the transfer of funds provided in the accompanying bill.

TITLE I--CORPS OF ENGINEERS--CIVIL

Under section 103, ``General Provisions, Corps of
Engineers--Civil'', $5,400,000 under the heading ``Operation
and Maintenance'' may be transferred to the Fish and Wildlife
Service to mitigate for fisheries lost due to Corps projects.

TITLE II--BUREAU OF RECLAMATION

Under ``Water and Related Resources'', $67,693,000 is
available for transfer to the Upper Colorado River Basin Fund
and $5,551,000 is available for transfer to the Lower Colorado
River Basin Development Fund. Such funds as may be necessary
may be advanced to the Colorado River Dam Fund. The amounts of
transfers may be increased or decreased within the overall
appropriation under the heading.
Under ``California Bay Delta Restoration'', such sums as
may be necessary to carry out authorized purposes may be
transferred to appropriate accounts of other participating
federal agencies.

TITLE III--DEPARTMENT OF ENERGY

Under ``Atomic Energy Defense Activities--National Nuclear
Security Administration--Naval Reactors'', $82,500,000 shall be
transferred to ``Department of Energy--Energy Programs--Nuclear
Energy'' for the Advanced Test Reactor.
Under section 301, ``General Provisions--Department of
Energy'', unexpended balances of prior appropriations provided
for activities in this Act may be transferred to appropriation
accounts for such activities established pursuant to this
title. Balances so transferred may be merged with funds in the
applicable established accounts and thereafter may be accounted
for as one fund for the same time period as originally enacted.

Disclosure of Earmarks and Congressionally Directed Spending Items

Neither the bill nor the report contains any congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9 of rule XXI.

Changes in the Application of Existing Law

Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of
the House of Representatives, the following statements are
submitted describing the effect of provisions in the
accompanying bill which directly or indirectly change the
application of existing law.

TITLE I--CORPS OF ENGINEERS

Language has been included under Corps of Engineers,
Investigations, providing for detailed studies and plans and
specifications of projects prior to construction.
Language has been included under Corps of Engineers,
Investigations, providing for a limited number of new starts.
Language has been included under Corps of Engineers,
Construction, stating that funds can be used for the
construction of river and harbor, flood and storm damage
reduction, shore protection, aquatic ecosystem restoration, and
related projects authorized by law, and for detailed studies
and plans and specifications of such projects.
Language has been included under Corps of Engineers,
Construction, permitting the use of funds from the Inland
Waterways Trust Fund and the Harbor Maintenance Trust Fund.
Language has been included under Corps of Engineers,
Construction, providing for a limited number of new starts.
Language has been included under Corps of Engineers,
Mississippi River and Tributaries, permitting the use of funds
from the Harbor Maintenance Trust Fund.
Language has been included under the Corps of Engineers,
Operation and Maintenance, stating that funds can be used for:
the operation, maintenance, and care of existing river and
harbor, flood and storm damage reduction, aquatic ecosystem
restoration, and related projects authorized by law; providing
security for infrastructure owned or operated by the Corps,
including administrative buildings and laboratories;
maintaining authorized harbor channels provided by a State,
municipality, or other public agency that serve essential
navigation needs of general commerce; surveying and charting
northern and northwestern lakes and connecting waters; clearing
and straightening channels; and removing obstructions to
navigation.
Language has been included under Corps of Engineers,
Operation and Maintenance, permitting the use of funds from the
Harbor Maintenance Trust Fund; providing for the use of funds
from a special account for resource protection, research,
interpretation, and maintenance activities at outdoor
recreation areas; and allowing use of funds to cover the cost
of operation and maintenance of dredged material disposal
facilities for which fees have been collected.
Language has been included under Corps of Engineers,
Operation and Maintenance, providing that one percent of the
total amount of funds provided for each of the programs,
projects, or activities funded under the Operation and
Maintenance heading shall not be allocated to a field operating
activity until the fourth quarter of the fiscal year and
permitting the use of these funds for emergency activities as
determined by the Chief of Engineers to be necessary and
appropriate.
Language has been included under Corps of Engineers,
Expenses, regarding support of the Humphreys Engineer Support
Center Activity, the Institute for Water Resources, the United
States Army Engineer Research and Development Center, and the
United States Army Corps of Engineers Finance Center.
Language has been included under Corps of Engineers,
Expenses, providing that funds are available for official
reception and representation expenses.
Language has been included under Corps of Engineers,
Expenses, prohibiting the use of other funds in Title I of this
Act for the activities funded in Expenses.
Language has been included under Corps of Engineers,
Expenses, permitting any Flood Control and Coastal Emergency
appropriation to be used to fund the supervision and general
administration of emergency operations, repairs, and other
activities in response to any flood, hurricane or other natural
disaster.
Language has been included to provide for funding for the
Office of the Assistant Secretary of the Army for Civil Works.
Language has been included under Corps of Engineers,
General Provisions, section 101, providing that none of the
funds may be available for obligation or expenditure through a
reprogramming of funds except in certain circumstances.
Language has been included under Corps of Engineers,
General Provisions, section 102, prohibiting the execution of
any contract for a program, project or activity which commits
funds in excess of the amount appropriated (to include funds
reprogrammed under section 101) that remain unobligated.
Language has been included under Corps of Engineers,
General Provisions, section 103, providing for transfer
authority to the Fish and Wildlife Service for mitigation for
lost fisheries.
Language has been included under Corps of Engineers,
General Provisions, section 104, prohibiting certain dredged
material disposal activities.
Language has been included under Corps of Engineers,
General Provisions, section 105, prohibiting any acquisition
that is not consistent with a certain federal regulation.
Language has been included under Corps of Engineers,
General Provisions, section 106, prohibiting certain activities
at a Corps of Engineers project.
Language has been included under Corps of Engineers,
General Provisions, section 107, prohibiting requirement of a
permit for the discharge of dredged or fill material under the
Federal Water Pollution Control Act for certain activities.
Language has been included under Corps of Engineers,
General Provisions, section 108, authorizing withdrawal of a
rule related to the definition of waters under the jurisdiction
of the Federal Water Pollution Control Act.
Language has been included under Corps of Engineers,
General Provisions, section 109 allowing the possession of
firearms at water resources development projects under certain
circumstances.

TITLE II--DEPARTMENT OF THE INTERIOR

Language has been included under Bureau of Reclamation,
Water and Related Resources, providing that funds are available
for fulfilling federal responsibilities to Native Americans and
for grants to and cooperative agreements with State and local
governments and Indian tribes.
Language has been included under Bureau of Reclamation,
Water and Related Resources, allowing fund transfers within the
overall appropriation to the Upper Colorado River Basin Fund
and the Lower Colorado River Basin Development Fund; providing
that such sums as necessary may be advanced to the Colorado
River Dam Fund; and, transfers may be increased or decreased
within the overall appropriation.
Language has been included under Bureau of Reclamation,
Water and Related Resources, providing for funds to be derived
from the Reclamation Fund or the special fee account
established by 16 U.S.C. 6806; that funds contributed under 43
U.S.C. 395 by non-federal entities shall be available for
expenditure; and that funds advanced under 43 U.S.C. 397a are
to be credited to the Water and Related Resources account and
available for expenditure.
Language has been included under Bureau of Reclamation,
Water and Related Resources, providing that funds may be used
for high priority projects carried out by the Youth
Conservation Corps, as authorized by 16 U.S.C. 1706.
Language has been included under Bureau of Reclamation,
Central Valley Project Restoration Fund, directing the Bureau
of Reclamation to assess and collect the full amount of
additional mitigation and restoration payments authorized by
section 3407(d) of Public Law 102-575.
Language has been included under Bureau of Reclamation,
Central Valley Project Restoration Fund, providing that none of
the funds under the heading may be used for the acquisition or
lease of water for in-stream purposes if the water is already
committed to in-stream purposes by a court order adopted by
consent or decree.
Language has been included under Bureau of Reclamation,
California Bay-Delta Restoration, permitting the transfer of
funds to appropriate accounts of other participating federal
agencies to carry out authorized programs; allowing funds made
available under this heading to be used for the federal share
of the costs of the CALFED Program management; and requiring
that CALFED implementation be carried out with clear
performance measures demonstrating concurrent progress in
achieving the goals and objectives of the program.
Language has been included under Bureau of Reclamation,
Policy and Administration, providing that funds are to be
derived from the Reclamation Fund and prohibiting the use of
any other appropriation in the Act for activities budgeted as
policy and administration expenses.
Language has been included under Bureau of Reclamation,
Administrative Provision, providing for the purchase of motor
vehicles for replacement.
Language has been included under General Provisions,
Department of the Interior, section 201, providing that none of
the funds may be available for obligation or expenditure
through a reprogramming of funds except in certain
circumstances.
Language has been included under General Provisions,
Department of the Interior, section 202, regarding the San Luis
Unit and the Kesterson Reservoir in California.
Language has been included under General Provisions,
Department of the Interior, section 203, prohibiting funds to
implement the San Joaquin River Restoration program.

TITLE III--DEPARTMENT OF ENERGY

Language has been included under Energy Efficiency and
Renewable Energy for the purchase, construction, and
acquisition of plant and capital equipment.
Language has been included under Electricity Delivery and
Energy Reliability for the purchase, construction, and
acquisition of plant and capital equipment.
Language has been included under Nuclear Energy for the
purchase, construction, and acquisition of plant and capital
equipment.
Language has been included under Fossil Energy Research and
Development for the acquisition of interest, including
defeasible and equitable interest in any real property or any
facility or for plant or facility acquisition or expansion, and
for conducting inquires, technological investigations, and
research concerning the extraction, processing, use and
disposal of mineral substances without objectionable social and
environmental costs under 30 U.S.C. 3, 1602 and 1603.
Language has been included under the Naval Petroleum and
Oil Shale Reserves, permitting the use of unobligated balances.
Language has been included under the Strategic Petroleum
Reserve, directing the Secretary of Energy to draw down and
sell crude oil from the Strategic Petroleum and providing that
the proceeds be deposited in the Energy Security and
Infrastructure Modernization Fund for use in carrying out the
Life Extension II project.
Language has been included under Science providing for the
purchase, construction, and acquisition of plant and capital
equipment; and for the purchase of motor vehicles.
Language has been included under Nuclear Waste Disposal for
the acquisition of real property or facility construction or
expansion.
Language has been included under Innovative Technology Loan
Guarantee Program crediting fees collected pursuant to section
1702(h) of the Energy Policy Act of 2005 as offsetting
collections to this account and making fees collected under
section 1702(h) in excess of the appropriated amount
unavailable for expenditure until appropriated.
Language has been included under Innovative Technology Loan
Guarantee Program prohibiting the subordination of certain
interests.
Language has been included under Innovative Technology Loan
Guarantee Program rescinding subsidy amountsfor the cost of
loan guarantees.
Language has been included under Innovative Technology Loan
Guarantee Program cancelling authority for commitments to
guarantee loans, excluding commitments made by October 1, 2017.
Language has been included under Departmental
Administration providing for the hire of passenger vehicles and
for official reception and representation expenses.
Language has been included under Departmental
Administration providing, notwithstanding the provisions of the
Anti-Deficiency Act, such additional amounts as necessary to
cover increases in the estimated amount of cost of work for
others, as long as such increases are offset by revenue
increases of the same or greater amounts.
Language has been included under Departmental
Administration, notwithstanding 31 U.S.C. 3302, and consistent
with the authorization in Public Law 95-238, to permit the
Department of Energy to use revenues to offset appropriations.
The appropriations language for this account reflects the total
estimated program funding to be reduced as revenues are
received. Language has been included under Weapons Activities
for the purchase, construction, and acquisition of plant and
capital equipment; and for the purchase of motor vehicles.
Language has been included under Defense Nuclear
Nonproliferation for the purchase, construction, and
acquisition of plant and capital equipment and other incidental
expenses.
Language has been included under Defense Nuclear
Nonproliferation restricting the use of funds provided for a
specific project.
Language has been included under Naval Reactors for the
purchase, construction, and acquisition of plant and capital
equipment, facilities, and facility expansion.
Language has been included under Naval Reactors
transferring certain funds to Nuclear Energy.
Language has been included under Federal Salaries and
Expenses providing funding for official reception and
representation expenses.
Language has been included under Defense Environmental
Cleanup for the purchase, construction, and acquisition of
plant and capital equipment; and for the purchase of motor
vehicles.
Language has been included under Other Defense Activities
for the purchase, construction, and acquisition of plant and
capital equipment.
Language has been included under Defense Nuclear Waste
Disposal for the acquisition of real property or facility
construction or expansion.
Language has been included under Bonneville Power
Administration Fund providing funding for official reception
and representation expenses and precluding any new direct loan
obligations.
Language has been included under Southeastern Power
Administration providing funds for official reception and
representation expenses.
Language has been included under Southeastern Power
Administration providing that, notwithstanding 31 U.S.C. 3302
and 16 U.S.C. 825s, amounts collected from the sale of power
and related services shall be credited to the account as
discretionary offsetting collections and remain available until
expended for the sole purpose of funding the annual expenses of
the Southeastern Power Administration; amounts collected to
recover purchase power and wheeling expenses shall be credited
to the account as offsetting collections and remain available
until expended for the sole purpose of making purchase power
and wheeling expenditures.
Language has been included under Southwestern Power
Administration providing funds for official reception and
representation expenses.
Language has been included under Southwestern Power
Administration providing that, notwithstanding 31 U.S.C. 3302
and 16 U.S.C. 825s, amounts collected from the sale of power
and related services shall be credited to the account as
discretionary offsetting collections and remain available until
expended for the sole purpose of funding the annual expenses of
the Southwestern Power Administration; amounts collected to
recover purchase power and wheeling expenses shall be credited
to the account as offsetting collections and remain available
until expended for the sole purpose of making purchase power
and wheeling expenditures.
Language has been included under Construction,
Rehabilitation, Operation and Maintenance, Western Area Power
Administration, providing funds for official reception and
representation expenses.
Language has been included under Construction,
Rehabilitation, Operation and Maintenance, Western Area Power
Administration providing that, notwithstanding 31 U.S.C.
3302,16 U.S.C. 825s, and 43 U.S.C. 392a, amounts collected from
the sale of power and related services shall be credited to the
account as discretionary offsetting collections and remain
available until expended for the sole purpose of funding the
annual expenses of the Western Area Power Administration;
amounts collected to recover purchase power and wheeling
expenses shall be credited to the account as offsetting
collections and remain available until expended for the sole
purpose of making purchase power and wheeling expenditures.
Language has been included under Falcon and Amistad
Operating and Maintenance Fund providing that, notwithstanding
68 Stat. 255 and 31 U.S.C. 3302, amounts collected from the
sale of power and related services shall be credited to the
account as discretionary offsetting collections and remain
available until expended for the sole purpose of funding the
annual expenses of the hydroelectric facilities of those dams
and associated Western Area Power Administration activities.
Language has been included under Falcon and Amistad
Operating and Maintenance Fund providing that the Western Area
Power Administration may accept a limited amount of
contributions from the United States power customers of the
Falcon and Amistad Dams for use by the Commissioner of the
United States Section of the International Boundary and Water
Commission for operating and maintenance of hydroelectric
facilities.
Language has been included under Federal Energy Regulatory
Commission to permit the hire of passenger motor vehicles, to
provide official reception and representation expenses, and to
permit the use of revenues collected to reduce the
appropriation as revenues are received.
Language has been included under Department of Energy,
General Provisions, section 301, prohibiting the use of funds
to prepare or initiate requests for proposals or other
solicitations or arrangements for programs that have not yet
been fully funded by the Congress; requiring notification and
reporting requirements for certain funding awards; limiting the
use of multi-year funding mechanisms; providing that none of
the funds may be available for obligation or expenditure
through a reprogramming of funds except in certain
circumstances; and providing that unexpended balances of prior
appropriations may be transferred and merged with new
appropriation accounts established in this Act.
Language has been included under Department of Energy,
General Provisions, section 302, providing that funds for
intelligence activities are deemed to be specifically
authorized for purposes of section 504 of the National Security
Act of 1947 during fiscal year 2018 until enactment of the
Intelligence Authorization Act for fiscal year 2018.
Language has been included under Department of Energy,
General Provisions, section 303, prohibiting the use of funds
for capital construction of high hazard nuclear facilities
unless certain independent oversight is conducted.
Language has been included under Department of Energy,
General Provisions, section 304, prohibiting the use of funds
to approve critical decision-2 or critical decision-3 for
certain construction projects, unless a separate independent
cost estimate has been developed for that critical decision.
Language has been included under Department of Energy,
General Provisions, section 305, prohibiting nonproliferation
activities in the Russian Federation until certain reporting
requirements are met.
Language has been included under Department of Energy,
General Provisions, section 306, authorizing the Secretary of
Energy to draw down and sell refined petroleum product from the
Strategic Petroleum Reserve under certain circumstances.
Language has been included under Department of Energy,
General Provisions, section 307, directing the Secretary of
Energy to draw down and sell additional crude oil from the
Strategic Petroleum Reserve and providing that the proceeds of
a sale be deposited in the SPR Petroleum Account for use for
the costs of previously authorized sales of crude oil.
Language has been included under Department of Energy,
General Provisions, section 308, limiting the authority of the
Secretary of Energy to establish regional petroleum product
reserves.
Language has been included under Department of Energy,
General Provisions, section 309, limiting the amount of funds
that may be transferred to the working capital fund.

TITLE IV--INDEPENDENT AGENCIES

Language has been included under Appalachian Regional
Commission providing for the hire of passenger vehicles and
services authorized by 5 U.S.C. 3109.
Language has been included under Delta Regional Authority
allowing the expenditure of funds as authorized by the Delta
Regional Authority Act without regard to section 382C(b)(2),
382F(d), 382M and 382N of said Act.
Language has been included under Denali Commission allowing
the expenditure of funds notwithstanding section 306(g) of the
Denali Commission Act of 1998, and providing for cost share
requirements for Commission-funded construction projects in
distressed and non-distressed communities, as defined by
section 307 of the Denali Commission Act of 1998 (Division C,
Title III, Public Law 105-277), and an amount not to exceed 50
percent for non-distressed communities.
Language has been included under Denali Commission allowing
funding to be available for payment of a non-federal share for
certain programs.
Language has been included under Northern Border Regional
Commission for expenditure as authorized by subtitle V of title
40, United States Code, without regard to section 15751(b).
Language has been included under Nuclear Regulatory
Commission, Salaries and Expenses that provides for salaries
and other support costs for the Office of the Commission, to be
controlled by majority vote of the Commission.
Language has been included under Nuclear Regulatory
Commission, Salaries and Expenses that provides for official
representation expenses and permits the use of revenues from
licensing fees, inspections services, and other services for
salaries and expenses to reduce the appropriation as revenues
are received. Funding is provided to support university
research and development, and for a Nuclear Science and
Engineering Grant Program.
Language has been included under the Nuclear Regulatory
Commission providing funds that are not derived from fee
revenues.
Language has been included under Office of Inspector
General that provides for the use of revenues from licensing
fees, inspections services, and other services for salaries and
expenses, notwithstanding section 3302 of title 31, United
States Code, to reduce the appropriation as revenues are
received.
Language has been included under Independent Agencies,
General Provisions, section 401, requiring the NRC to comply
with certain procedures when responding to Congressional
requests for information.
Language has been included under Independent Agencies,
General Provision, section 402, providing that none of the
funds may be available for obligation or expenditure through a
reprogramming of funds except in certain circumstances.

TITLE V--GENERAL PROVISIONS

Language has been included under General Provisions,
section 501, prohibiting the use of funds in this Act to
influence congressional action on any legislation or
appropriation matters pending before the Congress.
Language has been included under General Provisions,
section 502, prohibiting the transfer of funds except pursuant
to a transfer made by, or transfer authority provided in this
or any other appropriations Act, or certain other authorities,
and requiring a report.
Language has been included under General Provisions,
section 503, prohibiting funds in contravention of Executive
Order No. 12898 of February 11, 1994, regarding environmental
justice.
Language has been included under General Provisions,
section 504, prohibiting funds from being used to maintain or
establish computer networks unless such networks block the
viewing, downloading, or exchange of pornography.
Language has been included under General Provisions,
section 505, prohibiting the use of funds to further
implementation of components of the National Ocean Policy
developed under Executive Order 13547.
Language has been included under General Provisions,
section 506, prohibiting the use of funds for the removal of
any federally-owned or operated dam unless the removal has been
previously authorized by Congress.
Language has been included under General Provisions,
section 507, prohibiting funds in this Act from being used to
close the Yucca Mountain license application process, or for
actions that would remove the possibility that Yucca Mountain
might be an option in the future.
Language has been included under General Provisions,
section 508, setting at $0 the amount that the proposed new
budget authority exceeds the allocation made by the Committee
on Appropriations under section 302(b) of the Congressional
Budget Act of 1974.

Program Duplication

No provision of this bill establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.

Directed Rule Making

The bill does not direct any rule making.

Compliance with Rule XIII, Cl. 3(e) (Ramseyer Rule)

In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, the Committee notes that the
accompanying bill does not propose to repeal or amend a statute
or part thereof.

Appropriations Not Authorized by Law

Pursuant to clause 3(f) of rule XIII of the Rules of the
House of Representatives, the following table lists the
appropriations in the accompanying bill which are not
authorized:

Rescissions

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the
House of Representatives, the following table is submitted
describing the rescissions recommended in the accompanying
bill:
Amount
Department or Activity
Department of Energy: Title 17 Innovative Technology
Loan Guarantee Program.............................. 411,000,000
Department of Energy: Defense Nuclear Nonproliferation.. 49,000,000

Comparison with the Budget Resolution

Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a)(1)(A) of the
Congressional Budget Act of 1974, the following table compares
the levels of new budget authority provided in the bill with
the appropriate allocation under section 302(b) of the Budget
Act.

[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
302(b) Allocation This Bill
---------------------------------------------------------------
Budget Budget
Authority Outlays Authority Outlays
----------------------------------------------------------------------------------------------------------------
Mandatory....................................... .............. .............. 0 \1\0
Discretionary................................... 37,562 38,934 37,562 38,931
----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.

Five-Year Outlay Projections

Pursuant to section 308(a)(1)(B) of the Congressional
Budget Act of 1974, the following table contains five-year
projections prepared by the Congressional Budget Office of
outlays associated with the budget authority provided in the
accompanying bill:

[In millions of dollars]
------------------------------------------------------------------------

------------------------------------------------------------------------
Projection of outlays associated with the
recommendation:
2018.............................................. \2\22,847
2019.............................................. 10,856
2020.............................................. 3,413
2021.............................................. 518
2022 and future years............................. 230
------------------------------------------------------------------------
\2\Excludes outlays from prior-year budget authority.

Assistance to State and Local Governments

Pursuant to section 308(a)(1)(C) of the Congressional
Budget Act of 1974, the amount of financial assistance to State
and local governments is as follows:

[In millions of dollars]
------------------------------------------------------------------------
Budget
Authority Outlays
------------------------------------------------------------------------
Financial assistance to State and local 143 \2\0
governments for 2018...................
------------------------------------------------------------------------
\2\Excludes outlays from prior-year budget authority.

ADDITIONAL VIEWS OF NITA LOWEY AND MARCY KAPTUR

The Energy and Water Development bill funds critical energy
and water resource projects, supports science activities
necessary for American competitiveness and contributes to our
national defense through vital weapons, naval reactor research,
and nonproliferation funding. All of which are priorities that
should unite rather than divide us. While Chairman Simpson has
worked to incorporate the interests of Members from both
parties where possible, much of the funding in this bill is a
reflection of priorities from the Majority's side of the aisle.
Beyond the funding decisions, the Majority fortifies the
partisan cast of the bill by including ideological riders on
the Clean Water Act, guns on Corps lands and National Ocean
Policy. We should not have to remind our Majority colleagues
that similar provisions have imperiled enactment of this bill
in the past.
The Republican Majorities in the House and Senate have
proven they cannot govern responsibly. With full control of the
Executive and Legislative branches, nearly three months beyond
the April 15 deadline, Congress has not even adopted a budget.
It is a willfully blind and irresponsible approach to funding
the government.
The Committee began our work with a piecemeal approach to
the 302(b) allocations that failed to provide the American
people with a full budget blueprint for federal spending in
fiscal year 2018. Now we know why. The Majority is choosing to
consider bills that will breach the defense spending cap
included in the Budget Control Act by $72,476,000,000 and
further cut nondefense spending by nearly five billion dollars.
Democrats and Republicans in Congress must work together to
raise the budget caps in the Budget Control Act, as we have
done every year under sequestration. Our commitment to men and
women in uniform, senior citizens, and working men and women,
and mothers and fathers raising the next generation cannot be
met under the current budget caps.
The subcommittee's allocation is $37,568,000,000. This
allocation is $3,246,861,000 above the Administration's budget
request and $209,000,000 below the 2017 level. After adjusting
for scorekeeping, the defense allocation is $1,086,000,000
above 2017, while the non-defense allocation is $1,295,000,000
below 2017.
Funding for the Corps of Engineers is a bright spot within
the bill, $1,155,764,000 above the President's inadequate
request, ensuring that some ongoing projects will continue. The
bill provides $6,157,764,000 for the Army Corps of Engineers
and $1,340,000,000 for projects funded from the Harbor
Maintenance Trust Fund, $40,000,000 above 2017. This funding
will allow preventive and proactive investments necessary for
the economy and the safety of American citizens. The funding
above the request will also allow investments in the nation's
ports and waterways, which are critical to ensuring that
American-made goods can move to market, both domestically and
abroad. We firmly believe that our underinvestment in
infrastructure continues to hamper economic gains and prolongs
the underemployment plaguing our middle class.
While this bill ensures increased investment beyond that
included in the budget request, we should be doing even more to
build infrastructure and create jobs. Federal support of water
resource projects creates construction jobs and indirect
economic benefits that encourage local businesses and
individuals to embrace risk and make critical investments in
their communities. The inclusion of six new study starts and
two new construction projects will allow incremental progress
in addressing the $75 billion in projects awaiting funding.
We appreciate the Chairman's support provided for Science
in the bill. This account is critical to the competitiveness of
our nation. With a return on investment of 20 to 67 percent,
publicly funded research grows our economy and helps the United
States maintain its position as the global leader in
innovation. If the U.S. is to truly achieve energy independence
and tackle the challenges posed by climate change, the federal
government must continue to prioritize investments in cutting-
edge research at our national laboratories and universities
along with supporting advancements in high-potential, high-
impact energy technologies that are too early for private-
sector investment.
On the other hand, the bill's support for the Science
account is offset by the early termination of ARPA-E, beyond
even that of the Administration's request. ARPA-E has used
approximately $1,500,000,000 to fund more than 580 projects
through 36 focused programs and three open funding
solicitations. Since 2015, 74 of these projects have attracted
more than $1,800,000,000 in private sector follow-on funding.
APRA-E projects have generated 218 patents, and 56 companies
have been formed as a result of this funding. This highly
innovative and effective program enjoys bipartisan support both
on and off Capitol Hill, including from the U.S. Chamber of
Commerce and the heads of Southern Company, PG&E, and DuPont,
among others. The early termination of this program does a
tremendous disservice to U.S. leadership in energy technologies
necessary for our economic and energy security.
With regard to the applied energy programs at the
Department of Energy, investments in energy technology programs
are once again skewed heavily toward nuclear and fossil fuels.
We must provide for critical research and development for the
nuclear and fossil energy sectors to increase efficiency and
reduce emissions of those sources that currently provide the
bulk of our electricity generation. However, continued and
sustained research and development programs in renewable energy
cannot be the price of this support. The advances in renewable
energy are not the drumbeats of some distant clean energy
future. That future is now, and the rest of the world is ready
to lay siege to our technologies if we do not continue to
innovate. An investment in clean energy is an investment in
American jobs: 288,000 people work in the auto industry supply
chain making parts that make vehicles cleaner and more fuel
efficient; 360,000 people work in the solar industry; and, the
single fastest growing job in America is Wind Turbine
Technician.
While our President is choosing to ignore the realities of
human activity on the climate, the rest of the world has
roundly rebuked him. Just last week, the other 19 leaders in
the G-20 confirmed their intention to push towards a cleaner
energy future. Meanwhile, Volvo announced that after 2019, it
will design no new models of conventional internal combustion
powered vehicles, and France announced that it would ban the
sale of diesel and gas vehicles by 2040--joining India who
promised to make the switch by 2030.
The fact that countries as populous as India and as
developed as France can make such pledges is a tribute to the
innovations that have been driven by the Department of Energy.
The Department has spearheaded the research to make all-
electric cars a reality, from the materials science to
manufacture lightweight vehicles, to the chemical engineering
necessary for improved batteries, to the electrochemical
science which is allowing charging to happen faster and
cheaper. Finally, it was a loan from DOE which helped Tesla
jump from a small company into the second most highly valued
car company that will soon bring all-electric vehicles to the
mainstream.
In an era when Wall Street chases quarterly profits and
ever-improving earnings reports, we owe it to our constituents
to play the long game--making investments that may take decades
to pay off. More than any other, the energy sector needs
government support right up until it becomes commercially
viable. For decades, American presidents have made statements
targeting energy independence, but this year, that target is
finally in sight. The Energy Information Administration's
recent report expects the U.S. to be a net energy exporter by
2026. The Department of Energy deserves great credit for
bringing us to this point. The next revolution will be the
clean energy revolution, but if we do not provide continued and
consistent support to these nascent technologies, we will be
left behind.
The bill provides $10,239,344,000, a massive 11 percent
increase over the FY 2017 appropriation, for the National
Nuclear Security Administration (NNSA), even though NNSA
continues to be plagued by staggering cost overruns and
schedule delays. While we understand the need to modernize a
complex built substantially in the 1950s, we continue to
question whether the organization has the necessary tools and
processes to continue to manage large increases in these
activities year after year. The agency projects more than
$300,000,000,000 in spending on nuclear weapons programs over
the next 25 years. Notably, NNSA says it may need
$2,900,000,000,000 more in funding between 2022 and 2026 to
implement its weapons activities than the agency is projecting
to request. During this period, the NNSA is planning to be in
the midst of simultaneously executing four to five major
warhead life extension programs and several major construction
projects. While the Chairman continues strong oversight of the
NNSA, it is long past time to examine the assumptions
underlying the modernization program to determine if it is well
justified, affordable and the absolute minimum necessary to
meet the country's military requirements.
Nonproliferation programs are our first line of defense and
the most cost-effective way to achieve the urgent goal of
securing and reducing the amount of vulnerable bomb-grade
material. The bill includes $1,776,461,000 for these critical
programs, $106,411,000 below 2017. Increasing worldwide terror
threats are proof that we should be increasing our expenditures
on proliferation risks. In March 2015, the Secretary of Energy
Advisory Board recommended that the Department expand its
nonproliferation efforts and augment existing funding, and
expressed concern about the recent trend of falling budgets for
the core non-proliferation efforts. This bill continues the
downward spiral of funding to secure material that could be
used against a civilian population while providing a massive
increase to the weapons account.
The inclusion of controversial riders is an unnecessary
diversion from our primary responsibility--ensuring that
taxpayer funds are invested wisely in Federal programs that
will contribute to the economic vitality of our nation.
Three of the water riders taken together risk protection of
the world's most precious resource: fresh water. The first
Clean Water Act provision authorizes the Corps of Engineers and
the Environmental Protection Agency to withdraw the Waters of
the United States rule without regard to any provision of
statute or regulation that establishes a requirement for such
withdrawal. This provision would ensure key process steps
required by the Administrative Procedures Act and the Clean
Water Act would be bypassed. The bill also includes provisions
regarding agricultural exemptions to the Clean Water Act and a
prohibition of activities related to the National Ocean Policy.
The inclusion of the rider allowing guns to be carried on
all Corps of Engineers lands injects into the bill an
unnecessarily partisan topic that is unwarranted. We disagree
with the notion that reasonable limits on where guns can be
carried are an infringement upon the Second Amendment. We see
no need to contribute to an environment where guns are
commonplace in recreational areas where families are trying to
escape the pressures of everyday life.
The cuts proposed in this bill cede the future to our
competitors who are coopting the energy technologies that the
American people paid us to protect. While we should be looking
to build on our significant progress towards energy
independence under the previous Administration, the cuts to
clean energy programs represent a serious blow to advancing the
nation's position globally.
Ultimately, we appreciate the hard work of Chairman
Simpson. The allocation provided to Energy and Water required
significant cuts, and, while we would have made very different
decisions, we recognize the challenge. While the Chairman
largely limited the damage, the damage was principally to
Democratic priorities. We look forward to the day when
allocations across all Subcommittees are returned to acceptable
levels and to working with the Chairman and the members of this
Committee to advance the process. However, we cannot support
this bill given the funding decisions and ideological riders
currently included in the Committee product.

Nita Lowey.
Marcy Kaptur.