House Report 107-102 - MAKING SUPPLEMENTAL APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2001, AND FOR OTHER PURPOSES

[House Report 107-102]
[From the U.S. Government Publishing Office]

107th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 107-102

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

MAKING SUPPLEMENTAL APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER
30, 2001, AND FOR OTHER PURPOSES

_______

June 19, 2001.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed

_______

Mr. Young of Florida, from the Committee on Appropriations, submitted
the following

R E P O R T

together with

DISSENTING AND ADDITIONAL VIEWS

[To accompany H.R. 2216]

The Committee on Appropriations submits the following
report in explanation of the accompanying bill making
supplemental appropriations for the fiscal year ending
September 30, 2001, and for other purposes.

Bill Highlights

The bill recommended by the Committee provides a net
discretionary supplemental appropriation of $6,544,580,000 for
fiscal year 2001, and is consistent with the provisions for
fiscal year 2001 supplemental appropriations of H. Con. Res.
83, the fiscal year 2002 budget resolution. Total spending
provided in the bill is $7,481,283,000 including $6,750,352,000
for national security requirements, $2,168,931,000 for
nondefense requirements, and $1,438,000,000 in offsetting
reductions. The bill includes $6,455,380,000 for the Department
of Defense to cover increased operating costs, as well as to
cover requirements for pay, support, training and quality of
life for military personnel. It also includes $288,472,000 for
defense-related requirements at the Department of Energy. The
bill includes $389,200,000 for disaster-related needs for the
Corps of Engineers, Department of the Interior, and the Forest
Service. Additionally, the Low Income Home Energy Assistance
Program would be supplemented by $300,000,000; the Education
for the Disadvantaged account would be supplemented by
$161,000,000, and the Coast Guard would receive $92,000,000 for
operating expenses. The bill also includes $115,776,000 million
for the implementation of the recently enacted tax rebate.
Additional mandatory appropriations totalling $936,413,000 are
included for veterans' benefits.

TITLE I

NATIONAL SECURITY MATTERS

CHAPTER 1

DEPARTMENT OF DEFENSE--MILITARY

MILITARY PERSONNEL

The supplemental request included $515,000,000 for
functions funded in title I, Military Personnel, of the
Department of Defense Appropriations Act. The Committee
recommends $515,000,000. The following table summarizes the
requested amounts and the Committee recommendations.

OPERATION AND MAINTENANCE

The supplemental request included $2,885,700,000 for
functions funded in title II, Operation and Maintenance, of the
Department of Defense Appropriations Act. The Committee
recommends $2,936,200,000. The following table summarizes the
requested amounts and the Committee recommendations.

[In thousands of dollars]
------------------------------------------------------------------------
Committee
Program Request recommendation
------------------------------------------------------------------------
Flying Hours...................... $970,000 $970,000
Operation and Maintenance, (425,000) (425,000)
Navy.........................
Operation and Maintenance, Air (418,000) (418,000)
Force........................
Operation and Maintenance, (20,000) (20,000)
Defense-Wide.................
Operation and Maintenance, Air (14,000) (14,000)
Force Reserve................
Operation and Maintenance, Air (93,000) (93,000)
National Guard...............
Focused Relief.................... 36,000 36,000
Operation and Maintenance, (10,700) (10,700)
Army.........................
Operation and Maintenance, (7,000) (7,000)
Navy.........................
Operation and Maintenance, Air (3,800) (3,800)
Force........................
Operation and Maintenance, (14,500) (14,500)
Defense-Wide.................
Base Operations................... 414,000 407,000
Operation and Maintenance, (300,000) (300,000)
Army.........................
Operation and Maintenance, (83,000) (83,000)
Navy.........................
Operation and Maintenance, Air (7,000) (0)
Force........................
Operation and Maintenance, (7,000) (7,000)
Army Reserve.................
Operation and Maintenance, (7,000) (7,000)
Navy Reserve.................
Operation and Maintenance, (10,000) (10,000)
Army National Guard..........
Second Destination Transportation. 62,000 50,000
Operation and Maintenance, (62,000) (50,000)
Army.........................
Force Protection.................. 33,000 33,000
Operation and Maintenance, (22,000) (22,000)
Navy.........................
Operation and Maintenance, (11,000) (11,000)
Marine Corps.................
Contractor Logistics Support...... 63,000 63,000
Operation and Maintenance, Air (63,000) (63,000)
Force........................
Joint Exercises................... 11,000 11,000
Operation and Maintenance, Air (11,000) (11,000)
Force........................
EHIME MARU........................ 36,000 36,000
Operation and Maintenance, (36,000) (36,000)
Navy.........................
Utilities......................... 465,000 463,100
Operation and Maintenance, (172,800) (172,800)
Army.........................
Operation and Maintenance, (37,000) (37,000)
Navy.........................
Operation and Maintenance, (38,000) (38,000)
Marine Corps.................
Operation and Maintenance, Air (136,200) (136,200)
Force........................
Operation and Maintenance, (23,900) (22,000)
Defense-Wide.................
Operation and Maintenance, (13,500) (13,500)
Army Reserve.................
Operation and Maintenance, (5,500) (5,500)
Navy Reserve.................
Operation and Maintenance, (1,900) (1,900)
Marine Corps Reserve.........
Operation and Maintenance, Air (6,000) (6,000)
Force Reserve................
Operation and Maintenance, (13,900) (13,900)
Army National Guard..........
Operation and Maintenance, Air (16,300) (16,300)
National Guard...............
California Electrical Demand 24,500 41,500
Reduction........................
Operation and Maintenance, (300) (7,100)
Army.........................
Operation and Maintenance, (14,000) (21,200)
Navy.........................
Operation and Maintenance, (5,400) (5,400)
Marine Corps.................
Operation and Maintenance, Air (4,800) (7,800)
Force........................
Real Property Maintenance......... 186,000 144,300
Operation and Maintenance, (107,000) (91,000)
Army.........................
Operation and Maintenance, (44,000) (31,500)
Navy.........................
Operation and Maintenance, Air (16,000) (6,800)
Force........................
Operation and Maintenance, (19,000) (15,000)
Army National Guard..........
Aircraft Depot Maintenance........ 276,000 276,000
Operation and Maintenance, (77,000) (77,000)
Navy.........................
Operation and Maintenance, Air (175,000) (175,000)
Force........................
Operation and Maintenance, Air (14,000) (14,000)
Force Reserve................
Operation and Maintenance, Air (10,000) (10,000)
National Guard...............
Ship Depot Maintenance............ 200,000 200,000
Operation and Maintenance, (200,000) (200,000)
Navy.........................
Classified Programs............... 65,200 96,400
Recruiting and Advertising........ 0 25,000
Operation and Maintenance, (0) (25,000)
Army.........................
U.S.S. COLE (funded in General 44,000 44,000
Provisions)......................
Natural Disaster Damages (funded 0 39,900
in General Provisions)...........
------------------------------------------------------------------------

California Energy Demand Reduction

The Committee recommends $45,700,000 for implementation of
the Department of Defense's plan to reduce electricity demand
in California and the Western United States, an increase of
$17,000,000 above the request. These initiatives are intended
to reduce electricity demand by ten percent this year and a
total of fifteen percent by summer 2002. The Committee believes
strongly that the Department must place greater emphasis on
utilizing available service resources and technologies that can
ultimately eliminate service dependence on the public power
grids in this region. The Committee encourages the Department
of Defense to allocate a significant portion of this funding
increase to focus on this area.
The additional funds, to remain available through fiscal
year 2002, are allocated as follows:

Operation and Maintenance, Army....................... $6,800,000
Operation and Maintenance, Navy....................... 7,200,000
Operation and Maintenance, Air Force.................. 3,000,000

The Committee directs that in distributing funds for the
Energy Demand Reduction program, the Department should
prioritize projects based upon available data to include
increases in installation utility costs, the rate of savings in
energy demand the project will produce, and the availability of
service resources to complete the project. The Committee
further directs the Secretary of Defense to submit a report to
the congressional defense committees within 45 days of
enactment of this Act that describes the complete criteria to
be used and the proposed projects for distribution of these
funds.

Recruiting and Advertising

The Committee recommends a total of $25,000,000 to fund the
Army's advertising campaign sufficiently through the end of the
fiscal year. The Committee is aware of the Army's advertising
efforts to focus on certain audiences, including Hispanics, and
directs that no less than $5,000,000 of the funds provided be
used to further increase existing production efforts directed
toward Hispanic recruits.

Natural Disaster Damages

The supplemental request includes $12,500,000 to repair
damages caused by natural disasters. Responding to Committee
requests for information, the military services provided
details on the full extent of natural disaster damages,
including severe wind damage in the northwestern United States
in December 2000 and January 2001, the February 2001 earthquake
in the northwestern United States, and numerous other
occurrences of severe damage throughout the United States. In
order to meet these needs, the Committee has provided
$27,400,000 in additional funding, for a total of $39,900,000.
The Committee has realigned those funds in the request and
these additional amounts, and consolidated funding for these
activities in a general provision in the Committee bill.

Other Adjustments

Base Operations.--The Committee recommends a total of
$407,000,000 for Base Operations. Within the amount recommended
the Committee recommends $300,000,000 for Army; $83,000,000 for
Navy; $7,000,000 for Army Reserve; $7,000,000 for Navy Reserve;
and $10,000,000 for Army National Guard. Funding for MH-47E
unit beddown is deferred based on consideration of other high
priority requirements. The Department is encouraged to seek
restoration of Host Nation Support.
Real Property Maintenance.--The Committee recommends a
total of $144,300,000 for Real Property Maintenance. Within the
amount recommended, the Committee recommends $91,000,000 for
Army; $31,500,000 for Navy; $6,800,000 for Air Force; and
$15,000,000 for Army National Guard. Funding for F-22 beddown
is deferred.
Second Destination Transportation.--After review of the
many high priority requirements presented by the Department,
the Committee recommends a total of $50,000,000 for Second
Destination Transportation, a reduction of $12,000,000 to the
supplemental request.

use of biofuels by the department of defense

The Committee commends the Department of Defense for its
efforts to maximize the use of ethanol, biodiesel and other
agricultural-based fuels and lubricants, and urges the
Department to continue the effort.

PROCUREMENT

The supplemental request included $550,700,000 for
functions funded in title III, Procurement, of the Department
of Defense Appropriations Act. The Committee recommends
$488,700,000. The following table summarizes the requested
amounts and the Committee recommendations.

Training Munitions

The supplemental request includes $73,000,000 for various
training munitions. The Committee recommendation includes this
amount. The Air Force has informed the Committee that there is
a near term shortfall of $452,000,000 in training munitions and
a $2,000,000,000 shortfall over the Future Years Defense Plan.
The Committee is dismayed to learn that these shortfalls are a
result of a decade of neglect in Air Force budgets. The
Committee further notes that the munitions procured with the
supplemental funds will not be available for two years. This is
clearly a requirement that must be addressed in an ongoing and
deliberate manner as part of the regular annual appropriation
process rather than supplemental appropriations. Accordingly,
the Committee directs the Air Force to budget adequately for
training munitions in future budget submissions.

Global Positioning System (Space)

The supplemental request includes $15,500,000 in a
classified line for acquisition of a nuclear detonation
detection (NUDET) sensor for installation on the GPS satellite.
The Air Force has informed the Committee that installation of
this sensor on the GPS satellite is an unclassified fact. The
Committee believes that funding this sensor in a classified
line separately from the host GPS satellite unnecessarily
complicates budget formulation, justification, and execution.
Accordingly, the Committee recommendation includes a transfer
of funding for this effort to the GPS satellite procurement
line-item. The Committee directs that future budget requests
for GPS NUDET be included as part of the GPS satellite
procurement line-item. The Committee believes that this
direction is not only preferable from a budgetary standpoint,
but also fully consistent with DoD's intent to expand the Air
Force's role and responsibilities in space.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

The supplemental request included $440,500,000 for
functions funded in title IV, Research, Development, Test and
Evaluation, of the Department of Defense Appropriations Act.
The Committee recommends $525,600,000. The following table
summarizes the requested amounts and the Committee
recommendations.

v-22

The supplemental request proposes a series of funding
adjustments to the V-22 program, intended to begin
implementation of recommendations made by the Panel to Review
the V-22 Program (the so-called ``Blue Ribbon Panel'') to hold
V-22 production rates to minimum levels while the program is
restructured and restored to operation. To support initial
redesign and testing efforts, the supplemental request proposes
to increase the fiscal year 2001 budget request for V-22
research and development by $80,000,000. The request also
proposes rescissions of fiscal year 2001 V-22 production
funding totaling $475,000,000 ($235,000,000 from ``Aircraft
Procurement, Navy'', and $240,000,000 from ``Aircraft
Procurement, Air Force''), in keeping with the Department's
revised procurement profile.
The Committee agrees with the thrust of the proposed
changes contained in the supplemental budget request. However,
in order to enable the Marine Corps to accelerate activities
associated with risk reduction, part redesign, and continued
operational testing necessary for the V-22 to return to flight
status, the Committee recommends $120,000,000 for V-22 research
and development, an increase of $40,000,000 over the
supplemental request. The Committee has also carefully
scrutinized the funding requirements associated with the V-22
production program, and has determined that the supplemental
request uses overly conservative pricing assumptions by the
Defense Department on the remaining V-22 aircraft to be
procured with fiscal year 2001 funds. Accordingly, the
Committee believes the current planned fiscal year 2001
procurement program can be executed at a lower cost, yielding
funding which is available to help finance a more accelerated
and robust V-22 testing and development effort, as well as
other urgent needs in this legislation. Therefore, while
approving the rescissions of prior year funds proposed in the
request, the Committee recommends additional rescissions of
$95,000,000 to the ``Aircraft Procurement, Navy'' appropriation
account and $20,000,000 to the ``Aircraft Procurement, Air
Force'' account.

airborne laser

The supplemental request includes $153,000,000 for the
Airborne Laser to address program cost growth and to reduce
schedule risk for a lethal demonstration against a theater
missile planned in 2003. The Committee recommendation includes
this amount.

small diameter bomb

The supplemental request includes $20,000,000 for a new
program to develop a 250 pound Small Diameter Bomb (SDB). The
Committee notes that $12,000,000 was appropriated to initiate
this effort in fiscal year 2001. The Committee also notes that
contract award will likely not occur until late fiscal year
2001 or early fiscal year 2002. Given the availability of
funds, and the delay in contract award, the Committee
recommendation includes $13,000,000 subject to the direction
below. Any additional fiscal year 2002 requirements should be
addressed as part of the DoD's fiscal year 2002 request.
Over the past several years, the Committee has supported an
advanced technology demonstration of a low cost seeker
technology called Direct Attack Munitions Affordable Seeker
(DAMASK). DAMASK, developed at Naval Air Warfare Center China
Lake, uses a low cost commercial imaging infrared sensor
produced for the automobile industry. DAMASK provides a
passive, GPS independent, through the weather, lock-on after
launch, precision strike capability. In actual flight tests,
the seeker has demonstrated accuracy within one meter in a GPS
denied environment. DAMASK is estimated to cost $20,000 per
seeker, less than half of the amount allocated in the Air
Force's SDB seeker estimates.
The Committee strongly encourages the Air Force to adopt
the DAMASK technology for use in the SDB program. At a minimum,
the Committee directs that evaluation of DAMASK technology be
included in the SDB Request for Proposal (RFP) and that DAMASK
be the standard of comparison in terms of cost and performance
for all potential SDB seeker candidates.
The Committee directs that prior to contract award for SDB,
the Secretary of the Air Force submit a report to the
congressional defense committees that includes: 1) a
determination of whether the DAMASK technology (using an
articulated design if required) can be adapted to accommodate
the size requirements of the SDB; 2) an evaluation of DAMASK as
a viable solution to the anti-jam requirements for the SDB; 3)
an evaluation of DAMASK for use as an automatic target
recognition seeker for mobile targets (assuming a logical
technology growth path); 4) a cost and performance comparison
between DAMASK and competing seeker proposals; and 5) a
comparison of the competing seeker proposals in terms of
technology readiness.

Joint Experimentation

The supplemental request included $15,000,000 for
``Research, Development, Test and Evaluation, Defense-Wide'',
which the Department of Defense then intended to transfer to
Joint Experimentation efforts funded in the ``Research,
Development, Test and Evaluation, Navy'' appropriation. The
Committee recommends appropriating the $15,000,000 directly to
``Research, Development, Test and Evaluation, Navy'', to avoid
the delay.

Intelligence, Surveillance, Reconnaissance (ISR) Programs

The supplemental request included $25,000,000 for
Intelligence, Surveillance, Reconnaissance (ISR) programs,
specifically an effort to accelerate the development of the
Global Hawk High Altitude Endurance Unmanned Aerial Vehicle.
The Committee recommends $32,000,000 for overall ISR efforts,
an increase of $7,000,000, as outlined below.
Global Hawk.--The Department requested $25,000,000 to
accelerate the development of the Global Hawk High Altitude
Endurance Unmanned Aerial Vehicle. The Committee recommends
$17,000,000 for initiation of the plan presented by the Air
Force to accelerate development of the Global Hawk.
The Committee is concerned that the Air Force plan reflects
a highly ambitious schedule, relying heavily on the rapid
development and delivery of a myriad of sensor systems. The
Committee believes the Air Force should use up to $5,000,000 of
the funds provided to conduct a competitive fly-off
demonstration to evaluate existing sensor systems, particularly
electro-optical and infrared sensors and synthetic aperture
radars, that demonstrate potential for achieving the
requirement without the need for a significant investment in
development cost and schedule. This effort could significantly
reduce the risk inherent in the current schedule.
ISR Networking Enhancements.--The Army, Navy, and Air Force
are initiating programs and conducting joint and service-
specific exercises that highlight networking and command and
control of ISR assets, time critical strike, and other network
centric operations. These efforts, although developed
separately, are by necessity joint due to their reliance on a
common set of goals, assets, databases, and communication
links.
It is clear that central to the ability of each of the
Services to identify, track, attack, and assess damage, is the
development of methods to link available sensors into a network
of shared data to support decision makers at all levels. The
Committee notes that funding for many of the fiscal year 2001
networking efforts have been cobbled together from a variety of
projects that support related programs, but specific funds for
certain requirements have not been fully funded in a budget
request. Therefore, the Committee has provided a total of
$15,000,000 for the services to enhance and accelerate high
priority networking projects. The Committee directs the
$15,000,000 be used as follows:
For the Army, $5,000,000 for Intelligence,
Surveillance, Reconnaissance Enhancements.--$3,000,000 for UAV
Radio Network Upgrades to allow radios to be networked beyond
the line of sight and $2,000,000 for the continued development
of the Joint Common Data Base.
For the Navy, $5,000,000 for Naval Fires Network
(NFN) testing, evaluation, and deployment, an analysis of the
requirement to upgrade the tactical dissemination module, and
training and long lead requirements for a potential NFN
prototype deployment with a CVBG.
For the Air Force, $5,000,000 for Intelligence,
Surveillance, Reconnaissance Battle Management to initiate a
new start program to develop a capability to dynamically
command, control and visualize ISR assets and information in
the Air Operations Center (AOC).
The Committee agrees with the approach that each service is
taking. Nevertheless, it is essential that each service Chief
monitor their programs to ensure that service solutions are
joint in application. Architectures must be built in such a way
that interoperability and exchange of information is encouraged
and not hindered.

Office of the Assistant Secretary of Defense (C3I)

Recent actions within the Office of the Assistant Secretary
of Defense for Command, Control, Communications and
Intelligence (ASD/C3I) indicate that this office has failed in
its responsibility to adhere to congressional directives with
respect to execution of funding for particular programs,
projects, and activities. The Committee believes that these
instances show a lack of judgment, questionable management
practices, and what appears to be at best an indifference for
Congress' role in the establishment of defense spending
priorities. Such practices not only undermine the
appropriations process, but also weaken the confidence given to
ASD/C3I with respect to conducting its overall responsibilities
within the Department of Defense.
The Committee recognizes that ASD/C3I is an important
organization with far reaching oversight and management of
important Department of Defense programs. The Committee
believes that such authority must be combined with a more
responsive management structure that is capable not only of
effectively managing its programs, but also ensuring that the
intent of Congress is implemented in a timely manner. The
Committee expects that the Secretary of Defense will ensure
that any future Assistant Secretary of Defense for ASD/C3I will
take steps to correct these types of actions and will address
the issues identified by the Committee.

REVOLVING AND MANAGEMENT FUNDS

Defense Working Capital Funds

The supplemental request included $178,400,000 for
functions funded in title V, Revolving and Management Funds, of
the Department of Defense Appropriations Act. The Committee
recommends $178,400,000. The following table summarizes the
requested amounts and the Committee recommendations.

OTHER DEPARTMENT OF DEFENSE PROGRAMS

The supplemental request included $1,453,400,000 for
functions funded in title VI, Other Department of Defense
Programs, of the Department of Defense Appropriations Act. The
Committee recommends $1,655,300,000. The following table
summarizes the requested amounts and the Committee
recommendations.

defense health program cost growth

The Committee notes that in 12 of the past 16 years, the
Congress has been compelled to act either by providing new
appropriations or prior approval reprogrammings to ensure
sufficient funding for the Defense Health Program. Including
the amount recommended in this bill, the Congress has provided
a total of over $6,500,000,000 above amounts requested by the
Department of Defense for this program since fiscal year 1986.
One reason for these shortfalls is the need to fully fund
the cost of contractually provided health care. To fund such
shortfalls, the Committee recommends $786,300,000, as requested
by the administration, for costs associated with the TRICARE
global settlement, for price adjustments in execution of fiscal
year 2001, for requirements that could not be met by the
Department of Defense medical treatment facilities, and for
certain pharmacy costs. With respect to global settlement, the
Committee harbors concerns that this amount does not reflect
all valid contractor claims since July 2000. The Committee is
aware that numerous valid claims have yet to be adjudicated and
that new claims have been filed by TRICARE contractors since
the beginning of calendar year 2001. The Committee therefore
directs the Secretary of Defense to submit a report to the
congressional defense committees, prior to conference on the
fiscal year 2001 Supplemental Appropriations bill, that
provides estimates of the outstanding liability for global
settlement and other change order requirements not previously
identified or estimated that exceed the funding provided in
this bill.
In addition, the Committee is aware that the Department of
Defense suffers from chronic funding shortfalls due to the
inaccuracy of current DoD budgeting methods. Current practices
have clearly failed to keep pace with increases in medical care
costs brought about by advances in the technology of providing
medical care, and by substantial increases in pharmacy costs.
An example of the discrepancy between budgeting methods and
reality is reflected in pharmacy costs, for which the
Department regularly budgets for cost growth of 4-5 percent per
year while actual cost growth since 1996 has averaged nearly 12
percent annually. Therefore, the Committee directs the
Secretary of Defense to submit a report to the congressional
defense committees, concurrent with submission of the fiscal
year 2002 budget request, which details measures included in
the fiscal year 2002 budget request to improve budgeting
methods for medical care in the fiscal year 2002 request and
for subsequent budget requests.

Military Treatment Facility Optimization and Advance Medical Practices

The Committee has provided an additional $200,000,000 above
the budget request as an initial increment to begin the process
of reversing the erosion in the ability of the direct military
health care system to provide the highest standards of care to
service personnel, their families, and to Medicare-eligible
military retirees. The inability of the Department to
accurately forecast its TRICARE contractor costs, combined with
high cost growth in the commercial medical sector,
congressional action to expand health benefits to military
retirees, and a poorly structured base contract for TRICARE
service providers has resulted in an explosion in TRICARE costs
that has exceeded forecast levels by tens of billions of
dollars over the past several years. Besides putting strains on
the DoD budget as a whole, the direct care system of the
military medical departments has been especially hard hit as
their budgets have been consistently raided to pay for TRICARE
cost overruns. For instance, this year the fourth quarter
operating budgets for the Army, Navy and Air Force direct care
systems have all been used to pay legitimate but unbudgeted
TRICARE contractor claims. Without the replenishment of over
$1.4 billion in this bill, all three of the services' direct
care systems would be forced to shut down in July or August.
This severe and persistent funding instability for the
direct care system has been highly disruptive to orderly
administration and has had an insidious ``penny-wise, pound-
foolish'' effect on the entire system over time. It has
prevented military managers from making sound investments to
increase the longer-term efficiency of their system and to
maintain the highest quality standards of care. The Surgeons
General have repeatedly testified that this continued neglect
of the direct care system soon will lead to a decrease in
quality of patient care, a significant disruption in the normal
delivery of health care services, declining morale among the
medical workforce, and more difficulty in recruiting top
medical talent.
The Committee also notes that sound investments in the
direct care system can save significant amounts of money. For
instance, the Air Force Surgeon General testified that the lack
of funding for MTF operating room supplies has caused his staff
to transfer in-house appendectomy patients to TRICARE
contractors at a total cost of $6,000 to $7,000 per procedure
instead of $300 at an MTF. The Committee is aware that the
Surgeons General have documented hundreds of individual MTF
investments that will not only improve the quality of care, but
allow them to provide care cheaper than if it were outsourced
to TRICARE contractors. These ``optimization'' projects make
good business sense.
In addition, the Committee is concerned that the TRICARE
financial crisis has sapped the ability of the military direct
care system to keep abreast of and implement the latest
advances in medical practices. Every year, it is estimated that
the military health system needs around $100 million a year to
implement newly developed practices/procedures such as laser
refractive eye surgery, liquid based cytology, positron
emission tomography, or non-invasive colonoscopy. It is these
same funds that are held in reserve by the Department until the
very end of the fiscal year to cover TRICARE shortfalls, and
are often reduced or eliminated. The Committee believes this is
a counter-productive budgetary practice.
The Committee has therefore provided $200,000,000 to begin
the process of reversing the disinvestments in the military's
direct care system. Of this amount, $150,000,000 is provided to
expand the services' MTF optimization efforts and $50,000,000
is provided to finance necessary advances in medical practices
that have been deferred to date. Optimization projects may
include increased staffing, minor facility repairs and
maintenance, expansion of services, equipment modernization,
pharmacy upgrades, or other activities that will improve health
care service and/or reduce overall cost to the government. The
Committee bill carries language requiring that business case
models be prepared for these projects to show that they will be
``self-financing'' within at least three years of project
initiation, in the sense that they save more overall cost to
the government (to include TRICARE contractor cost) than is
invested under this account. The bill language also gives the
ability to the Surgeons General to undertake other activities
that may not technically meet the cost savings criteria if they
deem it necessary to meet a critical health care deficiency
that threatens health care outcomes.
The Committee directs each Surgeon General to report to the
congressional defense committees by September 15, 2001 on what
projects or activities are to be funded with these funds
(including the cost and location of each), the expected overall
return on investment of each project, and a description of the
need/benefits for each project. The Committee also expects and
has included language requiring that each project or activity
funded under this section be continued and adequately financed
in out year budget plans (the so-called POM process). The bill
requires the Secretary of Defense to so certify before funds
can be released.

Drug Interdiction and Counter-Drug Activities, Defense

The Congress identified $5,000,000 in the fiscal year 2000
Department of Defense Appropriations Act to provide logistical
and demilitarization support for the transfer of three excess
A-10 aircraft to the Department of State in support of its
Latin American drug eradication efforts. This action has yet to
be finalized. In view of the increased threat environment, the
Committee recommends that the Secretary of Defense renew
consultations with the Department of State on this matter and
proceed with the transfer of these aircraft.

RELATED AGENCIES

National Drug Intelligence Center

The Congress funded the National Drug Intelligence Center
(NDIC) at a fiscal year 2001 baseline level of $34,100,000 to
implement changes in operations and responsibilities specified
by the General Counterdrug Intelligence Plan (GCIP). The GCIP
established the NDIC as the principal center for domestic
strategic counterdrug analysis in support of policymakers and
resource planners, and mandated the establishment or expansion
of key technological and analytical assets. The Committee
expects the intelligence community to ensure that this new
baseline is fully reflected in the fiscal year 2002 and out
year budgets.

Classified Programs

The Committee's recommendations regarding classified
programs are summarized in a classified annex accompanying this
report.

GENERAL PROVISIONS--THIS CHAPTER

The Committee bill amends a general provision requested in
the supplemental request concerning the availability of funds
provided in this chapter.
The Committee bill includes a general provision requested
in the supplemental request concerning funds for intelligence
related programs.
The Committee bill amends a general provision requested in
the supplemental request which provides $44,000,000 of
additional funds for the repair of the U.S.S. COLE.
The Committee bill includes a general provision which
rescinds $834,000,000 from funds provided in previously enacted
Defense Appropriations Acts. The accounts and specific programs
recommended for rescission are as follows:

Rescissions
2000 Appropriations:
Procurement, Marine Corps: Shortstop................ $3,000,000
2001 Appropriations:
Overseas Contingency Operations Transfer Fund....... 81,000,000
Aircraft Procurement, Navy: MV-22................... 330,000,000
Procurement, Marine Corps: Shortstop................ 5,000,000
Aircraft Procurement, Air Force: CV-22.............. 260,000,000
Other Procurement, Air Force: Selected Activities... 65,000,000
Procurement, Defense-Wide: NSA--Classified Equipment 85,000,000
Intelligence Community Management Account: ADCI
(Collection Management)........................... 5,000,000

The Committee bill includes a general provision which
provides funding to repair facilities damaged by natural
disasters.
The Committee bill includes a general provision extending
the authorities provided in section 816 of the National Defense
Authorization Act of 1995, as amended, through January 31,
2002.

CHAPTER 2

DEPARTMENT OF ENERGY

National Nuclear Security Administration

weapons activities

The Committee recommendation includes $140,000,000 for
Weapons Activities as proposed by the Administration. However,
the Committee recommendation modifies the distribution of the
program funding.
Directed stockpile work.--An additional $54,000,000 has
been provided for directed stockpile work to be allocated as
follows: $18,900,000 for stockpile maintenance; $4,000,000 for
stockpile evaluation; and $31,100,000 for stockpile research
and development, including $24,000,000 for W-88 pit
certification activities.
Campaigns.--An additional $9,000,000 has been provided for
campaigns to be allocated as follows: $1,800,000 for secondary
readiness; $1,600,000 for non-nuclear readiness; $1,600,000 for
high explosives manufacturing and weapons assembly/disassembly
readiness; and $4,000,000 for pit manufacturing readiness.
Readiness in technical base and facilities.--An additional
$47,000,000 has been provided for readiness in technical base
and facilities to be allocated as follows: $23,000,000 for
operations of facilities; $9,500,000 for program readiness;
$4,500,000 for material recycle and recovery; $8,800,000 for
containers; and $1,200,000 for storage.
The recommendation also adjusts funding for construction
projects provided in the fiscal year 2001 appropriations bill
to more accurately reflect the use of the funds. Funding of
$9,500,000 provided in Project 01-D-103, Project Engineering
and Design (PE&D), has been transferred to Project 01-D-108,
Microsystems and Engineering Science Applications (MESA)
Complex, at Sandia National Laboratories. Funding provided in
fiscal year 2001 for this project was for infrastructure
upgrades which should have been provided in the MESA
construction line item, not PE&D.
Funding of $3,689,000 is provided for Project 01-D-107,
Atlas Relocation and Operations, at the Nevada Test Site. This
reflects the transfer of $3,689,000 from Project 01-D-103,
PE&D, to relocate the Atlas pulsed power facility to the Nevada
Test Site by the end of fiscal year 2003.
Facilities and infrastructure.--The Committee has provided
$30,000,000 to establish a new program, Facilities and
Infrastructure, to address the serious shortfall in maintenance
and repairs throughout the nuclear weapons complex. This
funding should be used to reduce the backlog of maintenance and
repairs and dispose of excess facilities.

Other Defense Related Activities

Defense Environmental Restoration and Waste Management

The Committee recommendation includes $100,000,000 for
Defense Environmental Restoration and Waste Management as
proposed by the Administration. Additional funding of
$31,700,000 is provided for the Savannah River Site for high-
level waste activities and work in the F&H areas. Additional
funding of $18,300,000 is provided for the Hanford site in
Richland, Washington, for spent nuclear fuel activities, work
on the Plutonium Finishing Plant, and F-reactor interim storage
activities. For the Office of River Protection in Richland, an
additional $10,000,000 is provided for tank farm operations and
$25,000,000 to support the Hanford vitrification plant.
Additional funding of $7,000,000 has been provided to purchase
TRUPACTS shipping containers in support of operations at the
Waste Isolation Pilot Plant in New Mexico; $5,000,000 to
restore funding for high level waste disposal activities at
Idaho; and $3,000,000 for groundwater contamination activities
at the Pantex plant in Texas.

Defense Facilities Closure Projects

The Committee recommendation includes $21,000,000 for
Defense Facilities Closure Projects as proposed by the
Administration. Additional funding of $20,000,000 has been
provided for the Fernald, Ohio, project, and $1,000,000 for the
Miamisburg, Ohio, project.

Defense Environmental Management Privatization

The Committee recommendation includes $27,472,000 for
Defense Environmental Management Privatization, a reduction of
$2,128,000 from the Administration's request of $29,600,000.
These additional funds will be used to meet funding commitments
for the Advanced Mixed Waste Treatment Facility in support of
legally enforceable deadlines for shipping waste out of Idaho.

CHAPTER 3

MILITARY CONSTRUCTION

Military Construction, Army

The Committee recommends appropriating $67,400,000 above
the President's request. Of this amount, $55,100,000 is to
upgrade utility systems in Korea that are in serious states of
disrepair, and $6,900,000 is to renovate and upgrade
substandard and environmentally unsafe vehicle maintenance
facilities in Germany. The following projects are included:

------------------------------------------------------------------------
Location/account/installation Project title Cost
------------------------------------------------------------------------
Korea:
Army:
Camp Humphreys........... Electrical Upgrade.. $10,200,000
Camp Humphreys........... Sewer Upgrade....... 12,000,000
Camp Hovey............... Sewer Upgrade....... 13,400,000
Camp Casey............... Sewer Upgrade Phase 8,000,000
2.
Camp Casey............... Electrical Upgrade.. 4,000,000
Camp Stanley............. Electrical Upgrade.. 7,500,000
Yongsan Army Garrison.... Underground Fuel 1,600,000
Tanks.
----------------
Subtotal, Korea........ .................... 56,700,000
================
Japan:
Army:
Camp Schwab.............. Special Forces 3,800,00
Training Range.
----------------
Subtotal, Japan........ .................... 3,800,000
================
================
Germany:
Army:
Darmstadt................ Vehicle Maintenance 2,500,000
Shop.
Kaiserslautern........... Vehicle Maintenance 2,900,000
Shop.
Bamberg.................. Vehicle Maintenance 1,500,000
Facility.
----------------
Subtotal, Germany...... .................... 6,900,000
================
Total.................. .................... 67,400,000
------------------------------------------------------------------------

In 1999 and 2000, the Command of United States Forces in
Korea (USFK) suffered 295 electrical power and 467 water supply
outages from a decaying infrastructure no longer capable of
standing up to daily use and severe weather, much less hostile
action. Magnifying the problem is the increasing need for
sophisticated information technology systems that are
incompatible with existing infrastructure. To begin managing
these problems, the Committee has included funds to replace the
infrastructure with upgraded systems. Not only will this
improve the lives and working conditions of troops stationed in
Korea, it will strengthen the position of the Command to
negotiate a land partnership agreement with the government of
the Republic of Korea.
As a result, of the deteriorating infrastructive, troops do
not have internet access readily available. Nevertheless, a
recent survey cited phone and internet access as the top
concern of service people stationed in Korea. The Committee
encourages the Commander of United States Forces in Korea
(USFK) to explore this matter and to make recommendations to
the Committee for improving its phone and internet services.
The Committee is also concerned that being stationed in
Korea is considered to be an assignment where soldiers suffer
the greatest loss of pay. For example, a Korea assignment is a
1-year unaccompanied hardship tour similar to a 6-month
unaccompanied hardship tour in the Balkans. Yet soldiers
serving in the Balkans are provided tax relief (no federal
taxes) and a Basic Allowance Subsistence (separate rations) of
approximately $237 per month. Soldiers serving in Korea,
however, do not receive similar benefits. Given the equally
hazardous conditions in Korea and the Balkans, this disparity
seems unfair.
Additionally, $3,800,000 is provided for the Special Forces
Special Operations Training Facility at Camp Schwab in Okinawa,
Japan. A new training facility is needed to replace the
existing facility that has been condemned. $1,600,000 is
provided for the replacement of underground fuel storage tanks
in Korea.
Finally, vehicle maintenance facilities in Germany are in
need of substantial renovation in order to ensure safe working
conditions for troops and to meet stringent environmental
regulations. Consequently, the Committee recommends $6,900,000
to renovate and upgrade three such facilities.

Military Construction, Navy

The Committee recommends providing $10,500,000, above the
President's request, of which $9,400,000 is for the
construction of an Emergent Repair Facility in Guam for
submarines and ships in transit in the South Pacific.
Additionally, $1,100,000 is provided for a 3rd Marine
Expeditionary Force Training Facility at Camp Schwab in
Okinawa, Japan. The existing training facility is incapable of
containing ammunition rounds and does not meet environment
standards.

Military Construction, Air Force

The Committee recommends $8,000,000 for Military
Construction, Air Force, instead of $18,000,000 as proposed by
the President. The appropriation is for heat, ventilation, and
fire protection systems in hardened aircraft shelters at the
Kunsan Air Base in Kunsan, Korea.

Family Housing, Army

The Committee recommends $29,480,000 for the Family
Housing, Army, instead of $27,200,000 as requested by the
President. Of the amount provided, $2,280,000 is to convert and
renovate 102 substandard low-rise apartments in Hannam Village,
Seoul, Korea. The remaining amounts are necessary to pay for
the increased cost of utilities due to rate increases for
natural gas and electricity.

Family Housing, Navy and Marine Corps

The Committee recommends providing $20,300,000 for the
Family Housing, Navy and Marine Corps, as requested by the
President. This amount is necessary to pay for the increased
cost of utilities due to rate increases for natural gas and
electricity.

Family Housing, Air Force

The Committee recommends providing $18,000,000 for the
Family Housing, Air Force, as requested by the President. This
amount is necessary to pay for the increased cost of utilities
due to rate increases for natural gas and electricity.

Base Realignment and Closure, Part IV

The Committee recommends $9,000,000 for the Base
Realignment and Closure, Part IV, as requested by the
President. This appropriation enables the Air Force to fulfill
contractual obligations incurred for the environmental clean-up
of McClellan Air Force Base.

GENERAL PROVISIONS--THIS CHAPTER

The bill contains three provisions:
Section 1301 modifies the existing $77,500,000 cap to allow
for unanticipated increases in construction costs and related
contingency allowances at the Arvin Cadet Physical Development
Center at the United States Military Academy in New York. These
increases, however, cannot exceed the authorized amount of the
project of $85,000,000. The Secretary of the Army is directed
to submit a report to the congressional defense committees on
the current cost estimates for the project 15 days prior to
expending funds on the final phase of construction.
Section 1302 clarifies that amounts provided to the
Department of Defense under each of the headings in this
Chapter are available for the same time period as the amounts
appropriated under each such heading in Public Law 106-246.
Section 1303 rescinds $64,000,000 from funds provided in
previous Military Construction Appropriations Acts.

TITLE II

OTHER SUPPLEMENTAL APPROPRIATIONS

CHAPTER 1

GENERAL PROVISION--THIS CHAPTER

Section 2101. The Committee recommends a technical
correction related to the Rural Community Advancement Program.
The Committee does not recommend additional appropriations for
the Animal and Plant Health Inspection Service and for the
Klamath Basin, as requested. It is the view of the Committee
that these funding requirements can be met by administrative
action through existing powers and authorities of the Commodity
Credit Corporation. The Committee urges and directs the
Department to take such action promptly in order to meet these
needs more expeditiously than would be possible by waiting for
enacted supplemental appropriations.
With regard to the budget request for $20,000,000 for
financial assistance to eligible producers in the Klamath
Basin, the Committee directs the Department of Agriculture to
submit an apportionment request forthwith to the Office of
Management and Budget. This request shall cover the release of
not less than $20,000,000 from available funds of the Commodity
Credit Corporation for the purpose of providing assistance to
producers, as determined by the Secretary of Agriculture. A
copy of this appointment request shall be submitted to the
Committees on Appropriations of the House and the Senate within
three days of its submission to the Office of Management and
Budget. Further, the Secretary of Agriculture is directed to
keep the Committees fully advised to the status and disposition
of this apportionment request.

CHAPTER 2

DISTRICT OF COLUMBIA

The Committee recommends an additional $95,677,000 for
District of Columbia activities during fiscal year 2001
consisting of $250,000 by transfer from Federal funds
previously appropriated, $93,276,000 from local funds and
$2,151,000 from enterprise funds. The District government's
request totals $94,677,000 to be financed completely from local
funds and was transmitted to the President by the Mayor on May
22, 2001. This supplemental request is necessitated by budget
pressures of $190,000,000 which District officials are
addressing and at this time have been able to resolve over 51
percent through internal adjustments and the use of reserves.
The balance is due primarily to increased enrollment in the
Medicaid program, the need to invest in support services for
children, youth, and their families, anticipated costs of
collective bargaining agreements, and unforeseen increases in
natural gas prices.
The supplemental recommended by the Committee is funded
entirely with local funds and a transfer of previously
appropriated Federal funds. There is no new Federal money
included. District officials and the control board certified
$109,500,000 in additional local revenues above the original
projections of $3,263,000,000 that were developed in December
1999 to support the fiscal year 2001 budget. The major areas of
revenue increases are taxes and licenses and permits.

Governmental Direction and Support

(including rescission)

The Committee recommends a net increase of $5,140,000
within this appropriation title consisting of $5,400,000 to
cover the 84 percent increase in the price of natural gas
experienced by the District government and a rescission of
$250,000 that was appropriated as a Federal payment in Public
Law 106-522 on the condition that the Comptroller General
assist the District in developing a solicitation for the study
and design of a system to simplify the administration of
personnel policies, including pay policies, for employees of
the District government. District officials have stated that
they are further along in their procurement effort and would be
delayed if they were to comply with the conditions placed on
the use of the $250,000. As a result the District's Chief
Financial Officer requested that the funds be rescinded and the
District's Personnel Officer has assured the Committee in a
letter dated May 2, 2001 that ``they expect to have the
deliverables required by the Congress by the end of * * *''
fiscal year 2001.

Economic Development and Regulation

The Committee recommends an additional $1,625,000 for two
programs under this appropriation title. A total of $1,000,000
is recommended for the Office of Business Services and Economic
Development for the implementation of the District government's
New E-Conomy Transformation Act of 2000 to attract and foster
the growth of businesses involved in the development,
production, distribution, and sale of Internet-based and other
communications technologies. The amount of $625,000 is
recommended to fund the city's abatement and condemnation
efforts of nuisance properties as required under section 5-513
of the D.C. Code. The Committee has not approved language
concerning the transfer of savings resulting from personnel
vacancies or language that requires the deposit of funds into
revolving accounts or the request that funds for the Department
of Consumer and Regulatory Affairs not be available until
certain actions are completed by June 1, 2001. That requirement
would have been unenforceable since the date of June 1, 2001
has since passed.

Public Safety and Justice

(including rescission)

The Committee recommends a net increase of $8,770,000 for
several activities within this appropriation account. A total
of $2,800,000 is recommended for the Metropolitan Police
Department consisting $800,000 to implement the photo radar
contract program to photograph the license plates of speeders
and $2,000,000 to pay an arbitration award made to the members
of the Fraternal Order of Police involving a grievance
concerning the curtailing of overtime pay to certain employees.
The Committee recommends $5,940,000 for the Fire and Emergency
Medical Services Department consisting of $5,540,000 for back
payments and accrued interest resulting from delays in
implementing programs allowing fire fighters to make pre-tax
payments for pension and health and life insurance benefits,
and $400,000 to cover the remaining costs of placing a fifth
fire fighter on fire trucks. The Committee also recommends
$161,000 for the Child Fatality Review Committee to examine the
past events and circumstances leading to or causing the death
of a child or youth, a committed ward of child welfare, or
person with mental retardation and developmental disabilities.
The Committee will operate as a distinct entity within the
Chief Medical Examiner's office. The Committee also recommends
the rescission of $131,000 for taxicab inspectors. This program
is funded under the Public Works appropriation at the same
level.

Public Education System

(Including transfer of funds)

The Committee recommends an additional $2,000,000 for the
Public Education System consisting of $1,750,000 in local funds
and $250,000 by transfer of previously appropriated Federal
funds. A total of $1,000,000 is recommended for independent
audits of public school enrollment counts and residency
verification in the D.C. Public Schools and the D.C. Public
Charter Schools as required by District statute. The Committee
questions why these funds were not included in the regular
annual budget, especially since the audit is required by law.
The Committee also recommends an additional $1,000,000 for the
operation of the Excel Institute Adult Education Program
consisting of a transfer of $250,000 in Federal funds
appropriated in Public Law 106-522 that are matched with
$750,000 in local funds. A total of $2,000,000 in local funds
was supposedly included by District officials in the District
of Columbia Appropriations Act for fiscal year 2001 but upon
closer examination there was only $1,000,000 that was included
for construction and the acquisition of construction services
from the General Services Administration on a reimbursable
basis. Rather than rescind the $250,000 in Federal funds for
the pay simplification system as requested by District
officials, the Committee has transferred those funds to this
appropriation title for the Excel Institute and recommends that
those funds be matched with $750,000 in local funds. The Excel
Institute is an Academic/Auto Technical Training School located
in Northwest Washington. The Institute offers young men and
women in the District the opportunity to train for a career,
earn a high school equivalency diploma, and obtain an
unsubsidized job in the automotive industry. The Committee has
also approved language that requires any proceeds and interest
accruing from the sale of the University of the District of
Columbia's radio station WDCU held by the control board in an
escrow account be used for the University's Endowment Fund and
invested in equity based securities if approved by the
District's Chief Financial Officer.

Human Support Services

The Committee recommends an additional $28,000,000 for
activities within the Human Support Services appropriation. The
Committee recommends $15,000,000 to cover the local share of
Medicaid costs due to an increase in the number of clients
receiving inpatient and specialty hospital services and an
increase in enrollments in the managed care program. A total of
$4,000,000 is recommended to cover modifications in the funding
formula that has resulted in higher Disproportionate Share to
Hospitals (DSH) payments for uncompensated care provided to
District residents by local hospitals. The Committee recommends
$3,000,000 for the District's Disability Compensation Fund to
cover medical and compensation costs for an increased caseload,
$1,000,000 for the Office of Latino Affairs to provide Latino
Community Education grants to 6,000 families in the Latino
community, and $5,000,000 for the Children Investment Trust to
support a non-profit entity referred to as the Children and
Youth Investment Trust Corporation. This corporation will
coordinate the services provided to youth at the community
level and disburse funds to community-based organizations that
serve children, youth and their families with services that
include early childhood development opportunities, safe and
enriching centers for learning in and out of school, and other
training, recreational, and educational services. The board of
the corporation consists of members appointed by the Mayor and
Council as well as four government officials who serve as
advisory members of the board.

Public Works

The Committee recommends $131,000 from local funds for the
Taxicab Commission for taxicab inspectors. This function was
previously performed by the Metropolitan Police Department
which had reduced the number of hack inspectors from six to
three. The Taxicab Commission is expected to place a higher
priority on taxicab enforcement and reducing the number of
complaints.

Workforce Investments

The Committee recommends an appropriation of $40,500,000
from local funds to fund anticipated compensation increases
from current labor negotiations. The District's major
bargaining units are renegotiating contracts that expired on
September 30, 2000.

Wilson Building

The Committee recommends an additional $7,100,000 from
local funds to make up a shortfall in budgeting by District
officials for funds needed for the relocation of various
District agencies to the John A. Wilson Building.

Capital Outlay

The Committee recommends approval of the reallocation of
$4,850,000 from five existing projects that have had no
implementation activity since fiscal year 1999 to six projects
involving buildings of historical significance in the District
and the funding of a program manager. The six government
buildings selected will be renovated. The dormant projects are:
Electrical Modernization-Old Juvenile Court, $2,650,000;
Asbestos Abatement-Oak Hill Juvenile Court, $525,000; Condition
Assessments, $159,080; Electrical Modernization-Various DC
Facilities, $1,000,000; Building Renovations--Old Juvenile
Court, $525,000. These dormant projects total $4,859,080. The
properties to be renovated are: Recorder of Deeds at 5th and D
Street, N.W., $2,000,000; Old Navy Hospital at 921 Pennsylvania
Avenue, S.E., $400,000; Tivoli Theater at 14th Street and Park
Road, N.W., $1,000,000; 10th Precinct Building at 750 Park
Road, N.W., $450,000; Lamond Recreation Center, $400,000;
Riggs-Lasalle Recreation Center at 501 Riggs Road, N.E.,
$400,000. The reallocation also includes $200,000 for the
program manager.

Enterprise and Other Funds

Water and Sewer Authority and the Washington Aqueduct

The Committee recommends an additional $2,151,000 from
local funds for the Water and Sewer Authority to cover the
costs of the Public Space Occupancy Permit Rental Fee (``right-
of-way'' fee) imposed by the District on WASA and increased
costs for compliance activities related to the District's
stormwater permit.

CHAPTER 3

DEPARTMENT OF DEFENSE--CIVIL

DEPARTMENT OF THE ARMY

Corps of Engineers--Civil

Flood Control, Mississippi River and Tributaries, Arkansas, Illinois,
Kentucky, Louisiana, Mississippi, Missouri, and Tennessee

The Committee has provided $18,000,000 for the Mississippi
River and Tributaries project for the Corps of Engineers to
address emergency needs resulting from severe localized spring
flooding and other natural disasters. The funds would be used
to address the damages caused by flooding by placing more
revetment squares; repairing scours that threaten a pumping
station, a public road and tributary levees; and replacing
relief wells that threaten the stability of a pumping station.
Funds would also be used to dredge silted channels, remove
drift and repair levee slides. The entire amount is designated
by the Congress as an emergency requirement pursuant to section
251(b)(2)(A) of the Balanced Budget and Emergency Deficit
Control Act of 1985, as amended.

Operation and Maintenance, General

The Committee has provided $115,500,000 for the Corps of
Engineers to address emergency needs resulting from recent
Midwestern and other floods, ice storms, an earthquake, and
other natural disasters. The funds would be used to dredge
commercial navigation channels, remove debris, repair damaged
revetments and dam embankments, and repair damaged buildings
and equipment at Corps of Engineers projects. The Committee has
also included language which directs the Corps of Engineers to
undertake the project authorized by section 518 of the Water
Resources Development Act of 1999. The entire amount is
designated by the Congress as an emergency requirement pursuant
to section 251(b)(2)(A) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.
Corps of Engineers projects in the Tulsa, Little Rock, and
Vicksburg Districts were particularly hard hit by winter ice
storms and the funds provided will enable the Corps to make
necessary repairs to damaged facilities.
Areas of Louisiana, Alabama and Texas received over 30
inches of rain over a eight day period as a result of Tropical
Storm Allison. The funds provided will enable the Corps to
address flooding problems, restore appropriate depths of
navigable waterways and other damages in the New Orleans,
Galveston and Mobile districts.

Flood Control and Coastal Emergencies

The Committee has provided $50,000,000, the same as the
amount requested by the Administration, for Flood Control and
Coastal Emergencies for the repair of eligible Federal and non-
Federal facilities damaged by natural disasters. The entire
amount is designated by the Congress as an emergency
requirement pursuant to section 251(b)(2)(A) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended.

DEPARTMENT OF ENERGY

Energy Programs

Non-Defense Environmental Management

The Committee recommendation includes $11,950,000 for Non-
Defense Environmental Management, an increase of $550,000 over
the request of $11,400,000. Additional funding of $10,000,000
is provided to continue cleanup at the Brookhaven National
Laboratory in New York, and $1,950,000 is provided to study
remediation options at the former Atlas Corporation's uranium
mill tailings site near Moab, Utah.

Uranium Facilities Maintenance and Remediation

The Committee recommendation includes $18,000,000 for
Uranium Facilities Maintenance and Remediation, to be derived
from the Uranium Enrichment Decontamination and Decommissioning
Fund, as proposed by the Administration. Additional funding of
$9,000,000 has been provided to support cleanup activities at
Paducah, Kentucky, and $9,000,000 has been provided to continue
decontamination and decommissioning activities at the former
gaseous diffusion plant in Oak Ridge, Tennessee.

Power Marketing Administrations

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

The Committee recommendation for the Western Area Power
Administration (Western) is $1,578,000 to complete the planning
and environmental studies to support the proposed 84-mile, 500-
kilovolt transmission line between Los Banos and Gates (also
known as ``Path 15'') in California. Path 15 is presently a
bottleneck in the transmission of electricity between northern
and southern California. The additional funds will allow
Western to complete the planning for the proposed transmission
project, including coordination with potential nonfederal
sponsors for the project. Funds are also provided for Western
to update the environmental impact documentation originally
completed in 1986. These funds are non-reimbursable so that
existing Western customers do not have to repay these costs to
the Federal government.

GENERAL PROVISION--THIS CHAPTER

The Committee has included bill language to direct the
Corps of Engineers to use $500,000 of the funds provided in
Public Law 106-377 to complete work on the Chickamauga Lock,
Tennessee feasibility study.

CHAPTER 4

DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

Operation of Indian Programs

The Committee recommends $50,000,000 for operation of
Indian programs, as requested by the Administration, to allow
for the repayment by the Bureau of Indian Affairs to the land
acquisition accounts of the Bureau of Land Management, the
United States Fish and Wildlife Service, and the National Park
Service. The entire amount is designated by the Congress as an
emergency requirement pursuant to section 251(b)(2)(A) of the
Balanced Budget and Emergency Deficit Control Act of 1985, as
amended.
In May 2001, the Secretary of the Interior used her
transfer authority in Section 102 of the FY 2001 Interior and
Related Agencies Appropriations Act, Public Law 106-291, to
provide a total of $41,000,000 to prevent the shutdown of the
San Carlos Irrigation Project (SCIP) electric power operations
in Arizona. The transfers are expected to cover the cost of
power purchases for May through the end of August. The
additional funds above the amount required for reimbursement
are to ensure that there are sufficient funds to cover the cost
of summer power requirements. The need for this funding is due
to: (1) SCIP's regional linkage to the California power market
and low western reservoirs, which contribute to high
electricity prices; (2) the lack of alternative power providers
in SCIP's service area, which leaves certain residents, such as
diabetics on dialysis, vulnerable to illness or death should
power be cut off; (3) and the inability of SCIP to obtain
sufficient funding to purchase power by other means. The
potential loss of power would have a disastrous effect on the
economy and human population of south-central Arizona. The
Department of the Interior is drafting legislation to authorize
the divestiture of SCIP assets and the Administration hopes to
proceed expeditiously.

United States Fish and Wildlife Service

Construction

The Committee recommends $17,700,000 for construction, to
remain available until expended, to repair damages to U.S. Fish
and Wildlife Service facilities caused by floods, ice storms,
and earthquakes in the States of Washington, Illinois, Iowa,
Minnesota, Missouri, Wisconsin, New Mexico, Oklahoma, and
Texas. The entire amount is designated by the Congress as an
emergency requirement pursuant to section 251(b)(2)(A) of the
Balanced Budget and Emergency Deficit Control Act of 1985, as
amended.

National Park Service

United States Park Police

The Committee recommends $1,700,000 for United States park
police for unbudgeted increases in pension costs for retired
United States park police officers. These funds will allow for
reinstatement of the recruit training class that has been
delayed to pay the increased retirement costs.

RELATED AGENCY

DEPARTMENT OF AGRICULTURE

Forest Service

State and Private Forestry

The Committee recommends $22,000,000 for State and private
forestry for emergency activities associated with ice storm
damage in the States of Arkansas and Oklahoma, and for
emergency pest suppression in several areas of the country. The
recommendation includes $10,000,000 for ice storm damage and
$12,000,000 for pest suppression and prevention activities on
Federal, State, Tribal, and private lands. The funds to address
ice storm damage are for technical forestry and community
assistance, development of recovery plans, forest regeneration
on non-Federal lands, and community fire assistance including
community fire presuppression, suppression and prevention
activities. The funds for pest suppression and prevention
activities should be focused on emergency needs such as
suppression of southern pine beetles in the South, addressing
the increasing sudden oak death needs in California and Oregon,
suppression of bark beetles in the West, restoration of forests
destroyed by spruce and mountain pine beetles, and emergency
development, production, and release of beetles for the purpose
of Hemlock woolly adelgid biocontrol. The entire amount is
designated by the Congress as an emergency requirement pursuant
to section 251(b)(2)(A) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.

National Forest System

The Committee recommends $12,000,000 for the national
forest system for emergency activities associated with ice
storm damage in the States of Arkansas and Oklahoma, and for
emergency response to the emerging problem of illegal marijuana
cultivation and trafficking in California and Kentucky. Within
the amount recommended, $10,000,000 is to address ice storm
damage for activities associated with forest restoration
including the preparation and sale of forest products, re-
establishment of forested areas, restoration of wildlife
habitat, and recreation site cleanup; and $2,000,000 is to
address the emerging illegal cultivation and trafficking of
marijuana in California and Kentucky. Such funds shall be
available for increased agency law enforcement activity and
increased cooperative support to State and local agencies. The
entire amount is designated by the Congress as an emergency
requirement pursuant to section 251(b)(2)(A) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended.

Wildland Fire Management

The Committee recommends $100,000,000 for wildland fire
management to address additional requirements for the 2001 fire
season. Current indications are that the agency's fire fighting
capability and available resources are likely to be
insufficient to meet demand. The Committee reminds the
Administration, that a significant debt of over $300,000,000
exists, due to borrowing from the Knutson-Vandenburg funds for
past fire suppression activities. It is important that
repayment of such borrowing be a high priority, should year-end
Wildland Fire Management balances afford such an opportunity.
The entire amount is designated by the Congress as an emergency
requirement pursuant to section 251(b)(2)(A) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended.

Capital Improvement and Maintenance

The Committee recommends $4,000,000 for capital improvement
and maintenance to repair damages caused by ice storms in
Arkansas and Oklahoma. Such funds are available for activities
including maintenance and reconstruction of roads accessing
national forest and research sites and facilities, maintenance
and restoration of trails, and maintenance and minor
reconstruction of administrative and recreation facilities. The
entire amount is designated by the Congress as an emergency
requirement pursuant to section 251(b)(2)(A) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended.

GENERAL PROVISIONS--THIS CHAPTER

The Committee recommends bill language to permit completion
of a wilderness study at Apostle Islands National Lakeshore, WI
by the National Park Service. An amount of $200,000 was
provided in fiscal year 2001 to complete this study. Because
the study will not be completed until fiscal year 2003, the
Committee recommends extending the availability of these funds.
The Committee recommends bill language extending the
availability of funds provided in fiscal year 2001 for
maintenance, protection and preservation of land in the
Minuteman Missile National Historic Site, South Dakota. The
projects for which $5,000,000 was made available to the
National Park Service, through the Air Force operations and
maintenance account, cannot be completed this fiscal year.
The Committee recommends bill language to correct a Public
Law reference in section 338 of the Interior and Related
Agencies Appropriations Act for fiscal year 2001.
The Committee recommends bill language modifying a
provision in Public Law 106-558 in order to authorize the
payment of full overtime rates for fire fighters in fiscal year
2001.
The Committee recommends bill language to permit the Forest
Service to receive reimbursement for expenditures for projects
that otherwise qualify for the use of Federal-aid highways
funds. Emergency relief for Federally-owned roads is routinely
made available to the Forest Service in the form of Federal-aid
highways funds (Department of the Treasury account 12-69X8083).
These monies provide critical funding for the repair of forest
roads made necessary by storms, floods, and other natural
occurrences. However, timely repair work is often needed prior
to Federal-aid highways funds being made available to the
Forest Service by the Federal Highway Administration. This time
lag in the provision of Federal-aid highways funds necessitates
the interim use of agency funds, which were budgeted
specifically for other projects, to complete such repairs. The
ability to reimburse accounts that were used to fund projects,
which would otherwise qualify for the use of Federal-Aid
Highways funds, is necessary to assure that both needed
emergency repair work and regularly planned, budgeted, and
approved projects are completed.

CHAPTER 5

DEPARTMENT OF LABOR

Employment and Training Administration

Training and Employment Services

(Rescission)

The bill includes a rescission of $359,000,000 from funds
provided in P.L. 106-554 to support the activities of the
Workforce Investment Act (WIA). The rescission is from amounts
provided on an advance basis for fiscal year 2002 to support
WIA activities in program year 2001. No rescission was
requested by the Administration.
The Department of Labor estimates that States will carry-in
balances of $1,778,000,000 on July 1, 2001, the beginning of
program year 2001. The Committee understands from the
Department that historically States have carried-in
approximately $1,000,000,000 annually among the three WIA block
grants.
The Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2001
provided advance appropriations for the adult and dislocated
worker employment and training activities totaling
$1,772,000,000. At the time the Committee provided these
advance appropriations, it did not anticipate such high levels
of unexpended balances in WIA block grant programs.
In view of the large carry-in balances, the Committee
recommendation rescinds $359,000,000 from these advanced
amounts, of which $100,000,000 is from adult employment and
training activities and $259,000,000 is from dislocated worker
employment and training activities. Even with the rescission,
States will have available an estimated $5,107,000,000 to
support WIA activities in program year 2001, $455,000,000 over
amounts available in program year 2000.
The President's fiscal year 2002 budget recommends reducing
WIA funding by $359,000,000 for program year 2002 in order to
reduce the high level of carry-in balances in each of the three
WIA block grants. The Committee believes that rescinding a
portion of the advance appropriations for these activities now
will provide more time for the States, the Administration, and
the Congress to examine program expenditure patterns and assess
future WIA training and employment service needs.

Program Administration

It has come to the Committee's attention that a number of
communities are experiencing delays in the Department of
Labor's processing of petitions for Trade Adjustment
Assistance. For localities whose workers have been adversely
affected by imports and trade agreements these job training and
reemployment benefits are crucial. The Committee urges the
Department of Labor to expedite the investigation and
certification processes for these benefits.

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Resources and Services Administration

Health Resources and Services

The funding available for construction and renovation of
Scripps Memorial East County Hospital in El Cajon, California
shall be divided equally between Sharps Grossmont Hospital,
located in San Diego County and El Centro Regional Medical
Center, located in Imperial County.

Administration for Children and Families

Low Income Home Energy Assistance

The bill includes $300,000,000 to serve as a reserve to
provide home energy assistance to low-income households,
including the needs of low-income households arising from
extreme summer heat or other emergencies, as defined in section
2603 of the Omnibus Budget Reconciliation Act of 1981. This is
$150,000,000 above the Administration's supplemental request.
The Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2001 (P.L.
106-554) provided $300,000,000 in contingent emergency funds
for LIHEAP. These funds were released in their entirety on
December 30, 2000, to address high heating fuel prices.

DEPARTMENT OF EDUCATION

Education Reform

The bill includes a provision to make a technical
correction relating to a project specified in the statement of
the managers on the conference report accompanying the
Departments of Labor, Health and Human Services, and Education,
and Related Agencies Appropriations Act, 2001.

Education for the Disadvantaged

The bill includes a provision to make a technical
correction relating to the amount of funding available for
Basic Grants in school year 2001-2002.
The bill also includes an additional $161,000,000 for the
Title I Grants to States program. It is the intent of the
Committee that, when taken together with the technical
correction to the basic grants amount, these additional
resources will result in a final fiscal year 2001 appropriation
of $7,397,971,000 for basic grants and $1,364,750,000 for
concentration grants. The Committee further intends that these
additional resources will be used to provide each state and
local educational agency the greater of either the amount it
would receive at levels specified in the conference report to
accompany H.R. 4577 under the 100-percent hold harmless or what
it would receive using the statutory formulas. The additional
funds are necessary to fully implement this agreement using
updated poverty and expenditure data that became available in
January 2001.

Impact Aid

The bill includes a provision requiring Impact Aid
construction funds to be distributed in accordance with the
formula provisions outlined in section 8007 of the Impact Aid
program as that section existed in fiscal year 2000.

Special Education

Education Research, Statistics, and Improvement

The bill includes a provision to make technical corrections
relating to the amount of funding available for projects
specified in the statement of the managers on the conference
report accompanying the Departments of Labor, Health and Human
Services, and Education, and Related Agencies Appropriations
Act, 2001.

CHAPTER 6

LEGISLATIVE BRANCH

Congressional Operations

House of Representatives

Payments to Widows and Heirs of Deceased Members of Congress

The bill provides the traditional death gratuity for the
widow of Norman Sisisky, late a Representative from the
Commonwealth of Virginia, and the heir of John Joseph Moakley,
late a Representative from the Commonwealth of Massachusetts.

Salaries and Expenses

Members' Representational Allowances, Standing Committees, Special and
Select, Committee on Appropriations, Allowances and Expenses

The bill includes an additional $44,214,000 for Members'
Representational Allowances (MRA's), standing committees,
special and select, the Committee on Appropriations and
allowances and expenses. Funds for MRA's and committees have
been requested by the House in the Administration's
supplemental submission to support the increased authorizations
recently approved by the House of Representatives. Funds are
also provided for increased benefit costs associated with the
related staff increases.
Since the Committee on House Administration Committee
funding resolution spans the biennial period of the 107th
Congress, the bill provides $9,776,000 within the above amount
to remain available until December 31, 2002, for committee
salaries and expenses.

Salaries, Officers and Employees

The bill provides an additional amount for salaries and
expenses of the Office of the Clerk and the Office of the Chief
Administrative Officer totaling $17,448,000. The Clerk is
provided $3,150,000 including $2,500,000 for the continuation
of the project to replace the current Legislative Information
Management Systems (LIMS) and $650,000 to fund anticipated
expenses of the Office of the House Employment Counsel.
The Chief Administrative Officer is provided $14,298,000.
This funding will allow upgrades to hardware and infrastructure
for improved and higher speed network connectivity between
Member Washington and district offices and within the House
campus.

OFFICE OF COMPLIANCE

Salaries and Expenses

The bill provides $35,000 to the Office of Compliance for
unexpected requests for counseling and mediation services.

GOVERNMENT PRINTING OFFICE

Congressional Printing and Binding

The bill provides $11,900,000 to fund a shortfall based on
the increased volume of printing of publications and associated
information products and services ordered by Congress during
fiscal years 2000 and 2001.

Government Printing Office Revolving Fund

The Committee recognizes the need to replace the air
conditioning system at the Government Printing Office. The
chillers, which date back to the 1970's, are in critical need
of replacement. They have outlived their useful life and are
obsolete, energy inefficient, and pose a threat to the
environment through the use of chlorofluorocarbons. In order to
avoid the potential failure of the entire system and provide
for energy efficient lighting, the bill provides the necessary
funding of $6,000,000.

LIBRARY OF CONGRESS

Salaries and Expenses

The Library of Congress and the United States Military
Academy initiated a collaborative telecommunications project
during fiscal year 2001 to ensure that the undergraduate cadet
population has effective access to digitized primary source
material which is available through the Library's Internet
site. To further the project, the Committee has provided an
additional $600,000 to upgrade the current network
infrastructure within the cadet barracks.
The Committee acknowledges that the Library of Congress is
endeavoring to acquire the 1507 world map by Waldseemueller and
is seeking private funding to support the acquisition. The
committee fully supports the initiative to acquire this major
treasure for its library. The 1507 World Map by Martin
Waldseemueller, the first work of any kind to designate as
America the newly discovered Western Hemisphere, is often
called ``America's birth certificate.'' As such this nearly
500-year old map is a significant historical document that
should be held by the people of the United States and exhibited
in Congress' library. The Committee urges the librarian to seek
an extension from the German Ministry of Culture to its June
30, 2001, deadline for the expiration of the export license to
allow the Library of Congress every opportunity to acquire for
America this most important historical document.

CHAPTER 7

DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

Grants-in-Aid for Airports

(Airport and Airway Trust Fund)

(Rescission of Contract Authorization)

The bill rescinds $30,000,000 in contract authority for the
``Grants-in-aid for airports'' program. This funding is above
annual obligation limitations on this program, and is therefore
not available for use in the program. As such, the rescission
will have no effect on current operations.

COAST GUARD

Operating Expenses

The recommendation includes an additional $92,000,000, as
requested, for Coast Guard operating expenses. Funding has been
made available until September 30, 2002. These funds are needed
to address: increased fuel costs ($37,000,000); additional pay
and benefits mandated or authorized under the National Defense
Authorization Act for Fiscal Year 2001 ($31,000,000); shortages
in aviation spare parts ($20,000,000); and costs of deploying
port security units to the Middle East ($4,000,000).

CHAPTER 8

DEPARTMENT OF THE TREASURY

Departmental Offices

salaries and expenses

The Committee has not provided the President's request for
an additional $60,601,000 to fund operational and perimeter
security support for the 2002 Winter Olympics in Salt Lake
City, Utah. The Committee supports this funding, which would
cover both increased Treasury Department workload as well as
travel, overtime and related costs of agencies providing
security support. The Committee expects to include such funding
in the fiscal year 2002 appropriation.

Financial Management Service

Salaries and Expenses

The Committee recommends an appropriation of $49,576,000
for the Financial Management Service to implement a tax rate
reduction credit as specified in section 101 of the Economic
Growth and Tax Relief Reconciliation Act of 2001. The funding
supports the purchase of check stock and other related paper
supplies, as well as postage and other costs associated with
processing and mailing tax rate reduction credit checks to
taxpayers. The Committee directs the Financial Management
Service to provide a detailed report on the expenditures made
pursuant to this appropriation 120 days after the enactment of
this Act.

Internal Revenue Service

Processing, Assistance, and Management

The Committee recommends an appropriation of $66,200,000
for the Internal Revenue Service to implement a tax rate
reduction credit as specified in section 101 of the Economic
Growth and Tax Relief Reconciliation Act of 2001. The funding
supports advance mailings to taxpayers of the tax rate
reduction credit schedule as well as related customer service
and account reconciliation activities. The Committee directs
the Internal Revenue Service to provide a detailed report on
the expenditures made pursuant to this appropriation 120 days
after the enactment of this Act.

CHAPTER 9

DEPARTMENT OF VETERANS AFFAIRS

Veterans Benefits Administration

Compensation and Pensions

The Committee recommends an additional $589,413,000 for
compensation and pension payments to eligible veterans.
Supplemental funds are needed in fiscal year 2001 in order to
meet cost of living adjustments, and program enhancements and
benefits contained in legislation enacted after passage of the
fiscal year 2001 appropriations bill.

Readjustment Benefits

The Committee recommends an additional $347,000,000 to meet
Montgomery GI Bill benefit enhancements contained in
legislation enacted after passage of the fiscal year 2001
appropriations bill.

Veterans Health Administration

Medical and Prosthetic Research

The Committee recognizes that the VA research program must
undertake a certain level of travel to properly optimize the
function and oversight of this worthwhile program and includes
language increasing the current fiscal year 2001 travel
limitation from $2,500,000 to $3,500,000.

Departmental Administration

General Operating Expenses

(including transfer of funds)

The Committee recommends $19,000,000 be transferred from
the Medical Care account to General Operating Expenses
exclusively for the Veterans Benefits Administration (VBA). VBA
is aggressively pursuing a proactive approach to solving the
mounting claims problem by hiring and training additional
claims adjudicators immediately. The additional $19,000,000
from Medical Care, plus $7,000,000 of reprogrammed GOE funds,
will allow VBA to hire and train approximately 400 new
personnel.
As a result of the hiring plan, VBA will need an increased
travel limitation in FY 2001 over the originally requested
level to support this training effort. The new fiscal year 2001
GOE travel limitation is $17,500,000.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Public and Indian Housing

housing certificate fund

(Rescission)

The Committee recommendation includes a rescission of
$114,300,000 of unobligated appropriations to the Housing
Certificate Fund and its predecessor programs.

Community Planning and Development

Community Development Fund

The Committee has included language which clarifies
Congressional intent with respect to appropriations made for
construction at a New Jersey university medical center, to
improve cyber-districts in Massachusetts, and for wastewater
and combined sewer overflow infrastructure improvements in
Massachusetts.

Housing Programs

Manufactured Housing Fees Trust Fund

The recommendation includes language to provide authority
for the expenditure of fees collected and deposited into the
Manufactured Housing Fees Trust Fund for fiscal year 2001. The
Manufactured Housing Improvement Act of 2000, enacted on
December 27, 2000, created this new fund and made expenditures
from the fund subject to annual appropriations. Technical
drafting errors in the statute have resulted in HUD being
unable to spend fees collected in fiscal year 2001, threatening
a shutdown of the program. Therefore, language is included to
rectify this situation.

Federal Housing Administration

FHA--Mutual Mortgage Insurance Program Account

The recommendation includes language giving the Department
authority to use existing fiscal year 2001 appropriations to
take corrective action in response to a probable fiscal year
2000 violation of the Anti-Deficiency Act. In fiscal year 2000,
FHA funded a $33,000,000 advertising campaign promoting HUD
programs. A portion of this program's funding was derived from
a non-appropriated account, the authorized use of which is
limited to disposition of FHA properties. According to HUD
officials, the use of this fund has resulted in a likely
violation of the Anti-Deficiency Act that is estimated by HUD
to total $6,900,000 plus interest. The Committee's
recommendation includes language to allow HUD flexibility to
pay the obligation and accrued interest from within existing
fiscal year 2001 appropriations for FHA administrative expenses
and for HUD's salaries and expenses.

FHA--General and Special Risk Program Account

The recommendation includes an additional $40,000,000 in
credit subsidy appropriations for the General Insurance and
Special Risk Insurance (GI/SRI) program account. The Committee
notes that for the second consecutive year, FHA has sought a
supplemental appropriation because of the inability of the
programs to operate within the resources provided. This
additional appropriation, when combined with a premium increase
for apartment development programs as assumed in the
Administration's supplemental funding request, will provide FHA
sufficient resources to guarantee all multi-family loans
meeting FHA underwriting criteria through the remainder of this
fiscal year. Changes in the premium structure will ensure that
most FHA apartment development programs operate in a self-
sustaining manner like most other FHA programs, including the
single-family insurance program, thereby averting further
shutdowns in the program. Therefore, language is also included
to condition the release of this additional amount upon
implementation of an interim final rule revising premium
structure for programs provided for under this heading.
The Committee is also concerned that insufficient FHA
management and oversight has contributed to the inability of
the programs to operate within the funding provided. Increased
FHA management and oversight of these programs, coupled with
reduced reliance on direct appropriations, will enable FHA
programs to operate in an uninterrupted manner. The Committee
expects FHA to take all actions necessary to strengthen its
management and financial oversight of these programs, and to
provide a report to the Committee no later than August 15,
2001, identifying the corrective actions taken to address these
issues.

INDEPENDENT AGENCIES

Department of Defense--Civil

Cemeterial Expenses, Army

Salaries and Expenses

The Committee recommends an additional $243,059 for
Arlington National Cemetery to pay a disputed water bill
consistent with statutory requirements in the Consolidated
Appropriations Act, 2001 (Public Law 106-554).

Environmental Protection Agency

Environmental Programs and Management

The Committee has included language in the bill which
clarifies Congressional intent with respect to an appropriation
made in fiscal year 2001 for work on New York watersheds.

State and Tribal Assistance Grants

The Committee has included language in the bill which
clarifies Congressional intent with respect to appropriations
made for four specific projects. The Committee has also
included a technical amendment which states the correct
appropriations level provided in Public Law 106-377 for state
and tribal assistance grants.

Federal Emergency Management Agency

disaster relief

(rescission)

The Committee has included a provision rescinding
$389,200,000 from the disaster relief fund. These funds are not
required by the Federal Emergency Management Agency at this
time.

National Aeronautics and Space Administration

Human Space Flight

The Committee has included language in the bill which would
remove a restriction placed on $40,000,000 of the funding
provided in the fiscal year 2000 appropriation for Human Space
Flight. The fiscal year 2000 language restricted the use of the
funding for a shuttle research mission to be accomplished after
STS-107 and December of 2001. With delays in the overhaul of
the space shuttle Columbia, and other delays caused by changes
to the shuttle manifest, NASA's STS-107 research mission has
been rescheduled for May of 2002 and the follow-on mission is
not currently manifested. NASA has already used $8,000,000 of
the $40,000,000 set-aside to prepare for the follow-on mission.
With this language change, NASA will be able to use $17,000,000
to cover the costs associated with the delay of STS-107 mission
and $15,000,000 will be used for research to be carried out on
the International Space Station. The Committee remains
concerned about the level of research conducted on the
International Space Station and wishes to stress the importance
of utilizing the laboratory facilities for scientific research.
The Committee is concerned to learn that the follow-on
research mission is not even scheduled until 2004. This mission
was intended as a gap-filler to support the scientific
community during construction of the International Space
Station. Pushing this mission back another three years will
only further exacerbate existing strains on the underfunded
life and microgravity science community.
The supplemental request had sought authority to offset
further costs for preparing STS-107 from the $15,000,000 set
aside for space station research. This request is denied. If
further funding is required for STS-107 in fiscal year 2002,
NASA is directed to submit a budget amendment to identify funds
for this purpose. According to the Congressional Research
Service, $462,000,000 has been transferred from space station
research to construction from fiscal years 1996-98. These
constant transfers have undermined the preparedness of the
research community to utilize the station and created an
atmosphere of significant uncertainty. The Committee is also
aware that NASA has proposed a significant space station
research realignment in fiscal year 2002. Further transfers
would be extremely detrimental to research efforts. Therefore,
the Committee language requires that $15,000,000 only be used
for space station research. The Committee supports the
completion of the STS-107 mission but believes that whenever
possible future year liabilities should be addressed through
regular order instead of through anticipated reprogrammed
actions.

GENERAL PROVISION--THIS CHAPTER

Sec. 2901. The bill includes a provision that clarifies
congressional intent that funds appropriated for the Community
development fund shall be available for two fiscal years.

TITLE III

GENERAL PROVISION--THIS ACT

Section 3001. This provision provides that no part of any
appropriation contained in this Act shall remain available for
obligation beyond the current fiscal year unless expressly so
provided in this Act.
Section 3002. The bill includes a general provision that
requires, within five days of enactment of this Act, the
Secretary of State to report to the Committee on Appropriations
on the projected uses of the unobligated balances of funds
available under the heading ``Agency for International
Development, International Disaster Assistance'', including
plans for allocating additional resources to respond to the
damage caused by the earthquakes that occurred in El Salvador
in January and February, 2001.

Changes in the Application of Existing Law

Pursuant to clause 3(f)(1) 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.
The bill includes several appropriations that are not
authorized by law and as such may be construed as legislative
in nature.
The bill includes several emergency appropriation
designations that may be construed as legislative in nature.
Language has been included for Department of Defense--
Military, in ``Operation and Maintenance, Army'', which extends
the availability of funds for California energy demand
reduction.
Language has been included for Department of Defense--
Military, in ``Operation and Maintenance, Navy'', which extends
the availability of funds for California energy demand
reduction.
Language has been included for Department of Defense--
Military, in ``Operation and Maintenance, Air Force'', which
extends the availability of funds for California energy demand
reduction.
Language has been included for Department of Defense--
Military, in ``Shipbuilding and Conversion, Navy'', which
provides funds for transfer to other shipbuilding programs.
Language has been included for Department of Defense--
Military, in ``Defense Health Program'', which provides funds
to cover increases in TRICARE contract costs associated with
the provision of health care services to eligible beneficiaries
of all the uniformed services.
Language has been included for Department of Defense--
Military, in ``Defense Health Program'', which provides funds
to improve the quality of care provided at military treatment
facilities.
Language has been included for Department of Defense--
Military, which restricts the availability of funds provided in
this Act to the same time period as the amounts appropriated in
Public Law 106-259 unless otherwise specified.
Language has been included for Department of Defense--
Military, concerning funds for intelligence related programs.
Language has been included for Department of Defense--
Military, which provides funds for the repair of the U.S.S.
COLE.
Language has been included for Department of Defense--
Military, which rescinds funds from various activities funded
in previously enacted Defense Appropriations Acts.
Language has been included for Department of Defense--
Military, which provides funds for facilities repair and
damages resulting from natural disasters.
Language has been included for Department of Defense--
Military, which extends the authorities provided in section 816
of the National Defense Authorization Act for 1995 (Public Law
103-337), as amended, through January 31, 2002.
The bill includes language under Title I, Chapter 3, which
provides funds for Military Construction, Army, Military
Construction, Navy, Military Construction, Air Force, Family
Housing, Army, Family Housing, Navy and Marine Corps, Family
Housing, Air Force, and the Department of Defense Base
Realignment and Closure Account 1990.
A general provision is included authorizing the Department
of the Army to expend funds in addition to amounts specified in
section 138 of Public Law 106-246 for the Cadet Physical
Development Center only for the purposes of meeting
unanticipated price increases.
A general provision is included making funds provided in
Chapter 3 available for the same time period as the amounts
appropriated under each such heading in Public Law 106-246.
The bill includes a general provision that directs the
Corps of Engineers to use $500,000 of the funds provided in
Public Law 106-377 to complete work on the Chickamauga Lock,
Tennessee feasibility.
A general provision is included rescinding funds from
previous Military Construction Appropriations Acts.
The bill includes language which makes technical
corrections regarding the Rural Community Advancement Program.
The bill includes a provision that clarifies the authorized
uses of funds under a small business grant program.
The bill includes rescissions under ``Governmental
Direction and Support'' and under ``Public Safety and
Justice''.
The bill includes the transfer of funds under ``Public
Education System''.
The bill includes language under ``Public Education
System'' which requires proceeds and interest accruing thereon
from the sale of the University of the District of Columbia
radio station WDCU that are in an escrow account of the control
board to be used for the University's Endowment Fund and allows
the funds to be invested in equity based securities if approved
by the District's Chief Financial Officer.
The bill includes language which directs the Corps of
Engineers to undertake the project authorized by section 518 of
Public Law 106-53.
The bill includes language under Weapons Activities
providing for the initiation of two construction projects in
fiscal year 2001.
The bill includes language under Western Area Power
Administration providing that the funds to complete the
planning and environmental studies to support the proposed
transmission line shall be non-reimbursable.
The bill includes a provision that extends the availability
of funding for a wilderness study at Apostle Islands National
Lakeshore and for maintenance, protection and preservation of
land at the Minuteman Missile National Historic Site;
correcting a citation in a provision from the fiscal year 2001
Interior and Related Agencies Appropriations Act; changing the
effective date of a provision dealing with overtime pay for
fire fighters; and permitting the reimbursement of Federal-aid
highways funds for Forest Service emergency road
reconstruction.
The bill includes a provision that provides additional Low
Income Home Energy Assistance funding under emergency authority
without the emergency designation requirement.
The bill includes a provision that requires Impact Aid
construction funds to be distributed in accordance with the
formula provisions outlined in section 8007 of the Elementary
and Secondary Education Act of 1965 as that section existed in
fiscal year 2000.
The bill includes language under the Department of Veterans
Affairs, medical and prosthetic research and general operating
expenses, which changes the limitation on travel expenditures.
The bill includes language under the Department of Veterans
Affairs, which transfers money from medical care to general
operating expenses for the purpose of expediting claims
processing.
The bill includes language under the Department of Housing
and Urban Development, manufactured housing fees trust fund,
providing authority for expenditure of fees collected in the
Fund in fiscal year 2001.
The bill includes language under the Department of Housing
and Urban Development, FHA--mutual mortgage insurance fund
program account, permitting funds available in fiscal year 2001
for FHA administrative expenses and HUD salaries and expenses
to be used to liquidate deficiencies, which occurred in fiscal
year 2000.
The bill includes language under the Department of Housing
and Urban Development, FHA--general and special risk insurance,
limiting the availability of funds until implementation of a
final interim rule revising the premium structure of program
provided under this account.
The bill includes language under the National Aeronautics
and Space Administration, human space flight, which deletes a
restrictive proviso included in the fiscal year 2000
appropriation.
The bill includes a provision that provides that of the
unobligated balances available under the heading ``National
Aeronautics and Space Administration, Human space flight,''
$15,000,000 shall be used only for research to be carried out
on the International Space Station.
The bill includes a provision that requires within five
days of enactment of this Act the Secretary of State to report
to the Committee on Appropriations on the projected uses of the
unobligated balances of funds available under the heading
``Agency for International Development, International Disaster
Assistance.''
In several instances, funds are provided to remain
available until expended.

Appropriations Not Authorized by Law

Pursuant to clause 3(f)(1) 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 by law:

[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
Appropriations
Agency/Program Last year of Authorization in last year of Appropriations
authorization level authorization in this bill
----------------------------------------------------------------------------------------------------------------
Department of Defense--Military:
Military Personnel, Army............... 2001 (\1\) $22,175,357 $164,000
Military Personnel, Navy............... 2001 (\1\) 17,772,297 84,000
Military Personnel, Marine Corps....... 2001 (\1\) 6,833,100 69,000
Military Personnel, Air Force.......... 2001 (\1\) 18,174,284 119,500
Reserve Personnel, Army................ 2001 (\1\) 2,473,001 52,000
Reserve Personnel, Air Force........... 2001 (\1\) 971,024 8,500
National Guard Personnel, Army......... 2001 (\1\) 3,782,536 6,000
National Guard Personnel, Air Force.... 2001 (\1\) 1,641,081 12,000
Operation and Maintenance, Army........ 2001 $19,280,381 19,144,431 666,100
Operation and Maintenance, Navy........ 2001 23,766,610 23,419,360 1,015,100
Operation and Maintenance, Marine Corps 2001 2,826,291 2,778,758 54,400
Operation and Maintenance, Air Force... 2001 22,395,221 22,383,521 848,000
Operation and Maintenance, Defense-Wide 2001 11,740,569 11,844,480 123,100
Operation and Maintenance, Army Reserve 2001 1,561,418 1,562,118 20,700
Operation and Maintenance, Navy Reserve 2001 978,946 978,946 12,500
Operation and Maintenance, Marine Corps 2001 144,159 145,959 1,900
Reserve...............................
Operation and Maintenance, Air Force 2001 1,903,859 1,903,659 34,200
Reserve...............................
Operation and Maintenance, Army 2001 3,182,335 3,333,835 39,300
National Guard........................
Operation and Maintenance, Air National 2001 3,468,375 3,474,375 119,700
Guard.................................
Other Procurement, Army................ 2001 4,235,719 4,497,009 3,000
Shipbuilding and Conversion, Navy...... 2001 12,826,919 11,614,633 222,000
Aircraft Procurement, Air Force........ 2001 9,923,868 7,583,345 84,000
Procurement of Ammunition, Air Force... 2001 646,808 647,808 73,000
Missile Procurement, Air Force......... 2001 2,863,778 2,863,778 15,500
Other Procurement, Air Force........... 2001 7,711,647 7,763,747 85,400
Procurement, Defense-Wide.............. 2001 2,278,408 2,346,258 5,800
Research, Development, Test and 2001 5,568,482 6,342,552 5,000
Evaluation, Army......................
Research, Development, Test and 2001 8,715,335 9,494,374 151,000
Evaluation, Navy......................
Research, Development, Test and 2001 13,779,144 14,138,244 275,500
Evaluation, Air Force.................
Research, Development, Test and 2001 10,681,652 11,157,375 94,100
Evaluation, Defense-Wide..............
Defense Working Capital Funds.......... 2001 916,276 916,276 178,400
Defense Health Program................. 2001 11,124,237 11,414,393 1,654,600
Drug Interdiction and Counter-Drug 2001 869,000 869,000 1,900
Activities, Defense...................
Military Construction, Army............ 2001 737,595 936,245 62,000
Military Construction, Navy............ 2001 928,273 928,273 9,400
Military Construction, Air Force....... 2001 870,208 882,208 8,000
Family Housing, Army................... 2001 1,187,749 1,187,749 29,480
Family Housing, Navy and Marine Corps.. 2001 1,299,722 1,299,722 20,300
Family Housing, Air Force.............. 2001 1,072,861 1,072,861 18,000
Base Realignment and Closure........... 2001 1,024,369 1,024,369 9,000
Department of Energy:
Non-Defense Environmental Management... 1984 (\2\) (\2\) 11,950
Weapons Activities-Project 01-D-107 2001 3,689 3,689 3,689
Atlas relocation \3\..................
Weapons Activities-Project 01-D-108 2001 9,500 9,500 9,500
MESA Complex \3\......................
Western Area Power Administration...... 1984 259,700 194,630 1,578
Department of Education:
Education for the Disadvantaged/Grants 2000 (\4\) 7,941,397,000 161,000,000
to LEAs...............................
House of Representatives:
Payments to widows and heirs........... ............. ................ ................ 290,200
Department of Transportation:
Coast Guard Operating expenses......... 1999 3,006,200 3,013,506 92,000,000
Department of Housing and Urban
Development:
Community Development Fund............. 1994 4,168,000 4,825,000 5,057,550
FHA-General and Special Risk Program 1995 (\4\) 152,000 40,000
Account...............................
----------------------------------------------------------------------------------------------------------------
\1\ The Fiscal Year 2001 National Defense Authorization Act (P.L. 106-398) authorizes $75,801,666,000 for
military personnel.
\2\ Funding for environmental cleanup activities included in this account was previously included as part of
regular facility operations and spread throughout many of the Department of Energy programs. The last year of
authorization for these programs was 1984. However, in 1989 the cleanup activities were separated from regular
facility operations and merged into the non-defense environmental management appropriation account. There has
not been a separate authorization for this account.
\3\ Funding for each of these projects was authorized as part of Project 01-D-103, Project Engineering and
Design. However, the activities to be performed in fiscal year 2001 are construction, not design,
necessitating a transfer of the funds to new line-item construction projects.
\4\ Such sums.

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.

----------------------------------------------------------------------------------------------------------------
Account to Amount Account from Amount
----------------------------------------------------------------------------------------------------------------
District of Columbia Funds Public Education $250,000 Federal funds................... $250,000
System.......................................
Department of Veterans Affairs, General 19,000,000 Department of Veterans Affairs, 19,000,000
Operating Expenses........................... Medical Care...................
----------------------------------------------------------------------------------------------------------------

Language has been included in Department of Defense--
Military, which provides for the transfer of $222,000,000 from
``Shipbuilding and Conversion, Navy'', to certain shipbuilding
programs.
Language has been included for Department of Defense--
Military, which allows for transfers of funds between
``Operation and Maintenance, Navy'', and appropriations
accounts for Procurement, for activities associated with the
repair of the U.S.S. COLE.

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:

Rescissions Recommended in the Bill

Amounts recommended
Department or Activity for rescission
Department of Defense:
Procurement, Marine Corps 2000/2002................. $3,000,000
Overseas Contingency Operations Transfer Fund 2001.. 81,000,000
Aircraft Procurement, Navy 2001/2003................ 330,000,000
Procurement, Marine Corps 2001/2003................. 5,000,000
Aircraft Procurement, Air Force 2001/2003........... 260,000,000
Other Procurement, Air Force 2001/2003.............. 65,000,000
Procurement, Defense-Wide 2001/2003................. 85,000,000
Intelligence Community Management Account 2001...... 5,000,000
Department of Defense, Previous Military Construction
Appropriations Acts................................. 70,500,000
District of Columbia funds:
Governmental Direction and Support.................. 250,000
Public Safety and Justice........................... 131,000
Department of Labor: Employment and Training
Administration, Training and Employment Services.... 359,000,000
Department of Transportation: Grants-in-Aid for Airports
(contract authority)................................ 30,000,000
Department of Housing and Urban Development: Public and
Indian Housing Certificate Fund..................... \1\ 114,300,000
Federal Emergency Management Agency: Disaster Relief.... 389,200,000

\1\ In addition, the bill rescinds an undesignated amount to be
determined on September 30, 2001.
---------------------------------------------------------------------------

Comparison With the Budget Resolution

Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives requires an explanation of compliance with
section 308(a)(1)(A) of the Congressional Budget and
Impoundment Control Act of 1974 (Public Law 93-344), as
amended, which requires that the report accompanying a bill
providing new budget authority contain a statement detailing
how that authority compares with the reports submitted under
section 302 of the Act for the most recently agreed to
concurrent resolution on the budget for the fiscal year from
the Committee's section 302(a) allocation. This information
follows:

[In millions of dollars]
------------------------------------------------------------------------
Remaining
section 302(a) This bill
allocation
------------------------------------------------------------------------
Discretionary:
Budget authority.................. 6,874 6,545
Outlays........................... 3,907 1,340
Mandatory:
Budget authority.................. 937 937
Outlays........................... 936 936
------------------------------------------------------------------------

Five-Year Outlay Projections

In compliance with section 308(a)(1)(B) of the
Congressional Budget and Impoundment Control Act of 1974
(Public Law 93-344), as amended, the following table contains
five-year projections associated with the budget authority
provided in the accompanying bill:
Millions
Budget Authority........................................ 7,482
Outlays:
2001................................................ 2,276
2002................................................ 4,229
2003................................................ 758
2004................................................ 20
2005 and beyond..................................... -83

Assistance to State and Local Governments

In accordance with section 308(a)(1)(C) of the
Congressional Budget and Impoundment Control Act of 1974
(Public Law 93-344), as amended, the financial assistance to
State and local governments is as follows:

Millions
Budget Authority........................................ 54
Fiscal Year 2001 outlays resulting therefrom............ 100

Constitutional Authority

Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives states that:

Each report of a committee on a bill or joint
resolution of a public character, shall include a
statement citing the specific powers granted to the
Congress in the Constitution to enact the law proposed
by the bill or joint resolution.

The Committee on Appropriations bases its authority to
report this legislation from Clause 7 of Section 9 of Article I
of the Constitution of the United States of America which
states:

No money shall be drawn from the Treasury but in
consequence of Appropriations made by law * * *

Appropriations contained in this Act are made pursuant to
this specific power granted by the Constitution.

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.

Compliance With Clause 3 of Rule XIII (Ramseyer Rule)

In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):

AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND
RELATED AGENCIES APPROPRIATIONS ACT, 2001

* * * * * * *

TITLE III--RURAL DEVELOPMENT PROGRAMS

* * * * * * *

Rural Community Advancement Program

For the cost of direct loans, loan guarantees, and grants,
as authorized by 7 U.S.C. 1926, 1926a, 1926c, 1926d, and 1932,
except for sections 381E-H, 381N, and 381O of the Consolidated
Farm and Rural Development Act, $762,542,000, to remain
available until expended, of which $53,225,000 shall be for
rural community programs described in section 381E(d)(1) of
such Act; of which $644,360,000 shall be for the rural
utilities programs described in sections 381E(d)(2),
306C(a)(2), and 306D of such Act; and of which $64,957,000
shall be for the rural business and cooperative development
programs described in section 381E(d)(3) of such Act: Provided,
That of the total amount appropriated in this account,
$24,000,000 shall be for loans and grants to benefit Federally
Recognized Native American Tribes, including grants for
drinking and waste disposal systems pursuant to section 306C of
such Act, of which $250,000 shall be available for a grant to a
qualified national organization to provide technical assistance
for rural transportation in order to promote economic
development: Provided further, That of the amount appropriated
for rural community programs, $6,000,000 shall be available for
a Rural Community Development Initiative: Provided further,
That such funds shall be used solely to develop the capacity
and [ability of] ability of low income rural communities and
private, nonprofit community-based housing and community
development organizations serving low-income rural communities,
including Federally Recognized Indian tribes to undertake
projects to improve housing, community facilities, community
and economic development projects in rural areas: Provided
further, That such funds shall be made available to qualified
private, nonprofit intermediary organizations (including
tribal) proposing to carry out a program of financial and
technical [assistance to] assistance and to other public
entities with a record of achievement in providing technical
and financial assistance to housing and community development
organizations in rural areas: Provided further, That such
intermediary organizations shall provide matching funds from
other sources, including Federal funds for related activities,
in an amount not less than funds provided: Provided further,
That of the amount appropriated for rural community programs,
not to exceed $5,000,000 shall be for hazardous weather early
warning systems: Provided further, That of the amount
appropriated for the rural business and cooperative development
programs, not to exceed $500,000 shall be made available for a
grant to a qualified national organization to provide technical
assistance for rural transportation in order to promote
economic development; $5,000,000 shall be for rural partnership
technical assistance grants; and $2,000,000 shall be for grants
to Mississippi Delta Region counties: Provided further, That of
the amount appropriated for rural utilities programs, not to
exceed $20,000,000 shall be for water and waste disposal
systems to benefit the Colonias along the United States/Mexico
borders, including grants pursuant to section 306C of such Act;
not to exceed $20,000,000 shall be for water and waste disposal
systems for rural and native villages in Alaska pursuant to
section 306D of such Act, with up to 1 percent available to
administer the program and up to 1 percent available to improve
interagency coordination; not to exceed $16,215,000 shall be
for technical assistance grants for rural waste systems
pursuant to section 306(a)(14) of such Act; and not to exceed
$9,500,000 shall be for contracting with qualified national
organizations for a circuit rider program to provide technical
assistance for rural water systems: Provided further, That of
the total amount appropriated, not to exceed $42,574,650 shall
be available through June 30, 2001, for authorized empowerment
zones and enterprise communities and communities designated by
the Secretary of Agriculture as Rural Economic Area Partnership
Zones; of which $34,704,000 shall be for the rural utilities
programs described in section 381E(d)(2) of such Act; and of
which $8,435,000 shall be for the rural business and
cooperative development programs described in section
381E(d)(3) of such Act.

* * * * * * *

D.C. Code, SECTION 31-1408

Subchapter I--Federal City College

Sec. 31-1408. Appropriation in lieu of donation of public lands

In lieu of extending to the District of Columbia those
provisions of the Act of July 2, 1862 (7 U.S.C. Sec. Sec. 301
to 305, 307, and 308), relating to donations of public lands or
land scrip for the endowment and maintenance of colleges for
the benefit of agriculture and the mechanic arts, there is
authorized to be appropriated to the District of Columbia the
sum of $7,241,706. Amounts appropriated under this section
shall be held and considered to have been granted to the
District of Columbia subject to those provisions of that Act
applicable to the proceeds from the sale of land or land scrip,
except that the funds appropriated in this section also may be
invested in equity based securities if approved by the Chief
financial Officer of the District of Columbia. In addition, any
proceeds and interest accruing thereon, which remain from the
sale of the former radio station WDCU in an escrow account of
the District of Columbia Financial Management and Assistance
Authority for the benefit of the University of the District of
Columbia, shall be used for the University of the District of
Columbia's Endowment Fund. Such proceeds may be invested in
equity based securities if approved by the Chief Financial
Officer of the District of Columbia.

* * * * * * *

DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES APPROPRIATIONS ACT,
2001

* * * * * * *

TITLE III--GENERAL PROVISIONS

* * * * * * *

Sec. 338. The authority to enter into stewardship and end
result contracts provided to the Forest Service in accordance
with section 347 of title III of section 101(e) of division A
of Public Law [105-825] 105-277 is hereby expanded to authorize
the Forest Service to enter into an additional 28 contracts
subject to the same terms and conditions as provided in that
section: Provided, That of the additional contracts authorized
by this section at least 9 shall be allocated to Region 1 and
at least 3 to Region 6.

* * * * * * *

NATIONAL FOREST AND PUBLIC LANDS OF NEVADA ENHANCEMENT ACT OF 1988

* * * * * * *

SEC. 2. OVERTIME PAY FOR CERTAIN FIREFIGHTERS.

(a) * * *
[(b) Effective Date.--The amendments made by this section
shall take effect on the first day of the first applicable pay
period beginning on or after the end of the 30-day period
beginning on the date of the enactment of this Act, and shall
apply only to funds appropriated after the date of the
enactment of this Act.]
(b) Effective Date.--The amendments made by this section
shall take effect on the date of enactment of this Act.

* * * * * * *

DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND
RELATED AGENCIES APPROPRIATIONS ACT, 2001

* * * * * * *

TITLE III--DEPARTMENT OF EDUCATION

* * * * * * *

Education for the Disadvantaged

For carrying out title I of the Elementary and Secondary
Education Act of 1965, and section 418A of the Higher Education
Act of 1965, $9,532,621,000, of which $2,731,921,000 shall
become available on July 1, 2001, and shall remain available
through September 30, 2002, and of which $6,758,300,000 shall
become available on October 1, 2001 and shall remain available
through September 30, 2002, for academic year 2001-2002:
Provided, That [$7,332,721,000] $7,237,721,000 shall be
available for basic grants under section 1124: Provided
further, That $225,000,000 of these funds shall be allocated
among the States in the same proportion as funds are allocated
among the States under section 1122, to carry out section
1116(c): Provided further, That 100 percent of these funds
shall be allocated by States to local educational agencies for
the purposes of carrying out section 1116(c): Provided further,
That all local educational agencies receiving an allocation
under the preceding proviso, and all other local educational
agencies that are within a State that receives funds under part
A of title I of the Elementary and Secondary Education Act of
1965 (other than a local educational agency within a State
receiving a minimum grant under section 1124(d) or
1124A(a)(1)(B) of such Act), shall provide all students
enrolled in a school identified under section 1116(c) with the
option to transfer to another public school within the local
educational agency, including a public charter school, that has
not been identified for school improvement under section
1116(c), unless such option to transfer is prohibited by State
law, or local law, which includes school board-approved local
educational agency policy: Provided further, That if the local
educational agency demonstrates to the satisfaction of the
State educational agency that the local educational agency
lacks the capacity to provide all students with the option to
transfer to another public school, and after giving notice to
the parents of children affected that it is not possible,
consistent with State and local law, to accommodate the
transfer request of every student, the local educational agency
shall permit as many students as possible (who shall be
selected by the local educational agency on an equitable basis)
to transfer to a public school that has not been identified for
school improvement under section 1116(c): Provided further,
That up to $3,500,000 of these funds shall be available to the
Secretary on October 1, 2000, to obtain updated local
educational agency level census poverty data from the Bureau of
the Census: Provided further, That $1,364,000,000 shall be
available for concentration grants under section 1124A:
Provided further, That grant awards under sections 1124 and
1124A of title I of the Elementary and Secondary Education Act
of 1965 shall be not less than the greater of 100 percent of
the amount each State and local educational agency received
under this authority for fiscal year 2000 or the amount such
State and local educational agency would receive if
$6,883,503,000 for Basic Grants and $1,222,397,000 for
Concentration Grants were allocated in accordance with section
1122(c)(3) of title I: Provided further, That notwithstanding
any other provision of law, grant awards under section 1124A of
title I of the Elementary and Secondary Education Act of 1965
shall be made to those local educational agencies that received
a Concentration Grant under the Department of Education
Appropriations Act, 2000, but are not eligible to receive such
a grant for fiscal year 2001: Provided further, That the
Secretary shall not take into account the hold harmless
provisions in this section in determining State allocations
under any other program administered by the Secretary in any
fiscal year: Provided further, That $8,900,000 shall be
available for evaluations under section 1501 and not more than
$8,500,000 shall be reserved for section 1308, of which not
more than $3,000,000 shall be reserved for section 1308(d):
Provided further, That $210,000,000 shall be available under
section 1002(g)(2) to demonstrate effective approaches to
comprehensive school reform to be allocated and expended in
accordance with the instructions relating to this activity in
the statement of the managers on the conference report
accompanying Public Law 105-78 and in the statement of the
managers on the conference report accompanying Public Law 105-
277: Provided further, That in carrying out this initiative,
the Secretary and the States shall support only approaches that
show the most promise of enabling children served by title I to
meet challenging State content standards and challenging State
student performance standards based on reliable research and
effective practices, and include an emphasis on basic academics
and parental involvement.

* * * * * * *

Education Research, Statistics, and Improvement

For carrying out activities authorized by the Educational
Research, Development, Dissemination, and Improvement Act of
1994, including part E; the National Education Statistics Act
of 1994, including sections 411 and 412; section 2102 of title
II, parts A, B, K, and L and sections 10102 and 10601 of title
X, and part C of title XIII of the Elementary and Secondary
Education Act of 1965, as amended, and title VI of Public Law
103-227, $732,721,000: Provided, That of the funds appropriated
for part A of title X of the Elementary and Secondary Education
Act of 1965, as amended, $5,000,000 shall be made available for
a high school reform program of grants to State educational
agencies to improve academic performance and provide technical
skills training: Provided further, That of the funds
appropriated for part A of title X of the Elementary and
Secondary Education Act of 1965, as amended, $5,000,000 shall
be made available to carry out part L of title X of the Act:
Provided further, That of the amount available for part A of
title X of the Elementary and Secondary Education Act of 1965,
as amended, $5,000,000 shall be available for grants to State
and local educational agencies, in collaboration with other
agencies and organizations, for school dropout prevention
programs designed to address the needs of populations or
communities with the highest dropout rates: Provided further,
That of the amount made available for part A of title X of the
Elementary and Secondary Education Act of 1965, as amended,
$50,000,000 shall be made available to enable the Secretary of
Education to award grants to develop, implement, and strengthen
programs to teach American history (not social studies) as a
separate subject within school curricula: Provided further,
That $53,000,000 of the amount available for the national
education research institutes shall be allocated
notwithstanding section 912(m)(1)(B-F) and subparagraphs (B)
and (C) of section 931(c)(2) of Public Law 103-227 and
$20,000,000 of that $53,000,000 shall be made available for the
Interagency Education Research Initiative: Provided further,
That of the funds appropriated for part A of title X of the
Elementary and Secondary Education Act, as amended, $50,000,000
shall be available to demonstrate effective approaches to
comprehensive school reform, to be allocated and expended in
accordance with the instructions relating to this activity in
the statement of managers on the conference report accompanying
Public Law 105-78 and in the statement of the managers on the
conference report accompanying Public Law 105-277: Provided
further, That the funds made available for comprehensive school
reform shall become available on July 1, 2001, and remain
available through September 30, 2002, and in carrying out this
initiative, the Secretary and the States shall support only
approaches that show the most promise of enabling children to
meet challenging State content standards and challenging State
student performance standards based on reliable research and
effective practices, and include an emphasis on basic academics
and parental involvement: Provided further, That [$139,624,000]
$139,853,000 of the funds for section 10101 of the Elementary
and Secondary Education Act of 1965 shall be available for the
projects and in the amounts specified in the statement of the
managers on the conference report accompanying this Act:
Provided further, That of the funds appropriated under section
10601 of title X of the Elementary and Secondary Education Act
of 1965, as amended, $2,000,000 shall be used to conduct a
violence prevention demonstration program: Provided further,
That of the funds available for section 10601 of title X of the
Elementary and Secondary Education Act of 1965, as amended,
$150,000 shall be awarded to the Center for Educational
Technologies to complete production and distribution of an
effective CD-ROM product that would complement the ``We the
People: The Citizen and the Constitution'' curriculum: Provided
further, That, of the funds for title VI of Public Law 103-227
and notwithstanding the provisions of section 601(c)(1)(C) of
that Act, $1,200,000 shall be available to the Center for Civic
Education to conduct a civic education program with Northern
Ireland and the Republic of Ireland and, consistent with the
civics and Government activities authorized in section
601(c)(3) of Public Law 103-227, to provide civic education
assistance to democracies in developing countries. The term
``developing countries'' shall have the same meaning as the
term ``developing country'' in the Education for the Deaf Act.

* * * * * * *

DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT, AND
INDEPENDENT AGENCIES APPROPRIATIONS ACT, 2001

* * * * * * *

TITLE III

* * * * * * *

ENVIRONMENTAL PROTECTION AGENCY

State and Tribal Assistance Grants

For environmental programs and infrastructure assistance,
including capitalization grants for State revolving funds and
performance partnership grants, [$3,628,740,000]
$3,641,341,386, to remain available until expended, of which *
* * and that the fiscal year 1999 and any subsequent funds may
be used for any required non-federal share of the costs of
projects funded by the federal government under section 580 of
Public Law 106-53.

* * * * * * *

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Human Space Flight

For necessary expenses, not otherwise provided for, in the
conduct and support of human space flight research and
development activities, including research, development,
operations, and services; maintenance; construction of
facilities including repair, rehabilitation, and modification
of real and personal property, and acquisition or condemnation
or real property, as authorized by law; space flight,
spacecraft control and communications activities including
operations, production, and services; and purchase, lease,
charter, maintenance and operation of mission and
administrative aircraft, $5,510,900,000, to remain available
until September 30, 2001[: Provided, That $40,000,000 of the
amount provided in this paragraph shall be available to the
space shuttle program only for preparations necessary to carry
out a life and micro-gravity science mission, to be flown
between STS-107 and December 2001].
Full Committee Votes

Pursuant to the provisions of clause 3(b) of rule XIII of
the House of Representatives, the results of each rollcall vote
on an amendment or on the motion to report, together with the
names of those voting for and those voting against, are printed
below:

rollcall no. 1

Date: June 14, 2001.
Measure: Supplemental Appropriations Bill, FY 2001.
Motion by: Ms. DeLauro.
Description of motion: To provide $600,000,000 in
contingency emergency appropriations to the low-income home
energy assistance program, to provide $1.4 billion to the low-
income home energy assistance program as an advance
appropriation for fiscal year 2002, and to reduce the Federal
Emergency Management Agency disaster relief rescission by
$300,000,000.
Results: Rejected 29 yeas to 32 nays.
Members Voting Yea Members Voting Nay
Mr. Aderholt Mr. Bonilla
Mr. Clyburn Mr. Callahan
Mr. Cramer Mr. Cunningham
Ms. DeLauro Mr. Doolittle
Mr. Dicks Mr. Frelinghuysen
Mr. Edwards Mr. Goode
Mrs. Emerson Ms. Granger
Mr. Farr Mr. Hobson
Mr. Fattah Mr. Istook
Mr. Hinchey Mr. Kingston
Mr. Jackson Mr. Knollenberg
Ms. Kaptur Mr. Kolbe
Mr. Kennedy Mr. LaHood
Ms. Kilpatrick Mr. Latham
Mrs. Lowey Mr. Lewis
Mrs. Meek Mr. Miller
Mr. Mollohan Mr. Nethercutt
Mr. Moran Mrs. Northup
Mr. Murtha Mr. Regula
Mr. Obey Mr. Rogers
Mr. Olver Mr. Sherwood
Mr. Pastor Mr. Skeen
Ms. Pelosi Mr. Sununu
Mr. Price Mr. Sweeney
Mr. Rothman Mr. Taylor
Ms. Roybal-Allard Mr. Tiahrt
Mr. Sabo Mr. Vitter
Mr. Serrano Mr. Walsh
Mr. Visclosky Mr. Wamp
Mr. Wicker
Mr. Wolf
Mr. Young
Full Committee Votes

Pursuant to the provisions of clause 3(b) of rule XIII of
the House of Representatives, the results of each roll call
vote on an amendment or on the motion to report, together with
the names of those voting for and those voting against, are
printed below:

rollcall no. 2

Date: June 13, 2001.
Measure: Supplemental Appropriations Bill, FY 2001.
Motion by: Mr. Visclosky.
Description of motion: To authorize the Secretary of the
Army to make direct loans and loan guarantees, not exceeding
$40,000,000 in aggregate, for improvements at existing non-
federal hydropower facilities, to provide $85,000,000 for
repairs and improvements to federal hydropower facilities, and
to designate these amounts as contingent emergency
appropriations.
Results: Rejected 24 yeas to 31 nays.
Members Voting Yea Members Voting Nay
Mr. Cramer Mr. Aderholt
Ms. DeLauro Mr. Callahan
Mr. Dicks Mr. Cunningham
Mr. Edwards Mr. Doolittle
Mr. Farr Mrs. Emerson
Mr. Fattah Mr. Frelinghuysen
Mr. Hinchey Mr. Hobson
Mr. Hoyer Mr. Istook
Mr. Jackson Mr. Kingston
Ms. Kaptur Mr. Knollenberg
Mr. Kennedy Mr. Kolbe
Ms. Kilpatrick Mr. LaHood
Mrs. Lowey Mr. Latham
Mrs. Meek Mr. Lewis
Mr. Nethercutt Mr. Miller
Mr. Obey Mr. Mollohan
Mr. Olver Mr. Murtha
Ms. Pelosi Mrs. Northup
Mr. Price Mr. Regula
Mr. Rothman Mr. Rogers
Ms. Roybal-Allard Mr. Sherwood
Mr. Sabo Mr. Skeen
Mr. Serrano Mr. Sununu
Mr. Visclosky Mr. Sweeney
Mr. Taylor
Mr. Tiahrt
Mr. Vitter
Mr. Walsh
Mr. Wamp
Mr. Wicker
Mr. Young
Full Committee Votes

Pursuant to the provisions of clause 3(b) of rule XIII of
the House of Representatives, the results of each roll call
vote on an amendment or on the motion to report, together with
the names of those voting for and those voting against, are
printed below:

rollcall no. 3

Date: June 14, 2001.
Measure: Supplemental Appropriations Bill, FY 2001.
Motion by: Mr. Farr.
Description of motion: To authorize the Secretary of Energy
to make direct loans and loan guarantees, not exceeding
$350,000,000 in aggregate, for improvements to existing non-
federal electric power transmission systems, and to designate
this amount as a contingent emergency appropriation.
Results: Rejected 24 yeas to 35 nays.
Members Voting Yea Members Voting Nay
Mr. Clyburn Mr. Aderholt
Ms. DeLauro Mr. Callahan
Mr. Dicks Mr. DeLay
Mr. Edwards Mr. Doolittle
Mr. Farr Mrs. Emerson
Mr. Fattah Mr. Frelinghuysen
Mr. Hinchey Mr. Goode
Mr. Hoyer Ms. Granger
Mr. Jackson Mr. Hobson
Ms. Kaptur Mr. Istook
Mr. Kennedy Mr. Kingston
Ms. Kilpatrick Mr. Knollenberg
Mrs. Lowey Mr. Kolbe
Mrs. Meek Mr. LaHood
Mr. Moran Mr. Latham
Mr. Obey Mr. Lewis
Mr. Olver Mr. Miller
Mr. Pastor Mr. Mollohan
Ms. Pelosi Mr. Nethercutt
Mr. Price Mrs. Northup
Mr. Rothman Mr. Peterson
Ms. Roybal-Allard Mr. Regula
Mr. Serrano Mr. Rogers
Mr. Visclosky Mr. Sherwood
Mr. Skeen
Mr. Sununu
Mr. Sweeney
Mr. Taylor
Mr. Tiahrt
Mr. Vitter
Mr. Walsh
Mr. Wamp
Mr. Wicker
Mr. Wolf
Mr. Young
Full Committee Votes

Pursuant to the provisions of clause 3(b) of rule XIII of
the House of Representatives, the results of each roll call
vote on an amendment or on the motion to report, together with
the names of those voting for and those voting against, are
printed below:

rollcall no. 4

Date: June 14, 2001.
Measure: Supplemental Appropriations Bill, FY 2001.
Motion by: Mrs. Lowey.
Description of motion: to provide $100,000,000 to the
Agency for International Development, Child Survival and
Disease Programs Fund, to provide $50,000,000 to Development
Assistance, to provide $100,000,000 to a global trust fund to
fight HIV/AIDS, malaria, and tuberculosis, and to designate
these amounts as contingent emergency appropriations.
Results: Rejected 25 yeas to 30 nays.
Members Voting Yea Members Voting Nay
Mr. Boyd Mr. Aderholt
Mr. Clyburn Mr. Bonilla
Ms. DeLauro Mr. Cunningham
Mr. Dicks Mr. Doolittle
Mr. Edwards Mrs. Emerson
Mr. Farr Mr. Frelinghuysen
Mr. Fattah Mr. Goode
Mr. Hinchey Ms. Granger
Ms. Kaptur Mr. Hobson
Mr. Kennedy Mr. Istook
Ms. Kilpatrick Mr. Kingston
Mrs. Lowey Mr. Knollenberg
Mrs. Meek Mr. Kolbe
Mr. Mollohan Mr. LaHood
Mr. Murtha Mr. Latham
Mr. Obey Mr. Lewis
Mr. Olver Mr. Miller
Mr. Pastor Mr. Nethercutt
Ms. Pelosi Mr. Peterson
Mr. Price Mr. Regula
Mr. Rothman Mr. Rogers
Ms. Roybal-Allard Mr. Sherwood
Mr. Sabo Mr. Skeen
Mr. Serrano Mr. Sununu
Mr. Visclosky Mr. Sweeney
Mr. Vitter
Mr. Walsh
Mr. Wamp
Mr. Wolf
Mr. Young
Full Committee Votes

Pursuant to the provisions of clause 3(b) of rule XIII of
the House of Representatives, the results of each roll call
vote on an amendment or on the motion to report, together with
the names of those voting for and those voting against, are
printed below:

rollcall no. 5

Date: June 14, 2001.
Measure: Supplemental Appropriations Bill, FY 2001.
Motion by: Ms. Kaptur.
Description of motion: To provide an additional $35,000,000
for Animal and Plant Health Inspection Service, Salaries and
expenses.
Results: Rejected 27 yeas to 35 nays.
Members Voting Yea Members Voting Nay
Mr. Boyd Mr. Aderholt
Mr. Clyburn Mr. Bonilla
Ms. DeLauro Mr. Callahan
Mr. Dicks Mr. Cunningham
Mr. Edwards Mr. DeLay
Mr. Farr Mr. Doolittle
Mr. Fattah Mrs. Emerson
Mr. Frelinghuysen Mr. Goode
Mr. Hinchey Ms. Granger
Mr. Hoyer Mr. Hobson
Mr. Jackson Mr. Istook
Ms. Kaptur Mr. Kingston
Mr. Kennedy Mr. Knollenberg
Ms. Kilpatrick Mr. Kolbe
Mrs. Lowey Mr. LaHood
Mrs. Meek Mr. Latham
Mr. Mollohan Mr. Lewis
Mr. Obey Mr. Miller
Mr. Olver Mr. Murtha
Mr. Pastor Mr. Nethercutt
Ms. Pelosi Mr. Peterson
Mr. Price Mr. Regula
Mr. Rothman Mr. Rogers
Ms. Roybal-Allard Mr. Sherwood
Mr. Sabo Mr. Skeen
Mr. Serrano Mr. Sununu
Mr. Visclosky Mr. Sweeney
Mr. Taylor
Mr. Tiahrt
Mr. Vitter
Mr. Walsh
Mr. Wamp
Mr. Wicker
Mr. Wolf
Mr. Young
Full Committee Votes

Pursuant to the provisions of clause 3(b) of rule XIII of
the House of Representatives, the results of each roll vote on
an amendment or on the motion to report, together with the
names of those voting for and those voting against, are printed
below:

RollCall No. 6

Date: June 14, 2001.
Measure: Supplemental Appropriations Bill, FY 2001.
Motion by: Ms. Pelosi.
Description of motion: To require the Federal Energy
Regulatory Commission to impose ``cost-of-service'' limits on
the price of wholesale electricity sold in the Western region
for the next two years.
Results: Rejected 27 yeas to 34 nays.
Members Voting Yea Members Voting Nay
Mr. Boyd Mr. Aderholt
Mr. Clyburn Mr. Bonilla
Ms. DeLauro Mr. Callahan
Mr. Dicks Mr. Cunningham
Mr. Farr Mr. DeLay
Mr. Fattah Mr. Doolittle
Mr. Hinchey Mr. Edwards
Mr. Hoyer Mrs. Emerson
Mr. Jackson Mr. Frelinghuysen
Ms. Kaptur Mr. Goode
Mr. Kennedy Ms. Granger
Ms. Kilpatrick Mr. Hobson
Mrs. Lowey Mr. Istook
Mrs. Meek Mr. Kingston
Mr. Mollohan Mr. Knollengberg
Mr. Moran Mr. Kolbe
Mr. Murtha Mr. LaHood
Mr. Obey Mr. Latham
Mr. Olver Mr. Lewis
Mr. Pastor Mr. Miller
Ms. Pelosi Mr. Nethercutt
Mr. Price Mr. Peterson
Mr. Rothman Mr. Regula
Ms. Roybal-Allard Mr. Sherwood
Mr. Sabo Mr. Skeen
Mr. Serrano Mr. Sununu
Mr. Visclosky Mr. Sweeney
Mr. Tiahrt
Mr. Vitter
Mr. Walsh
Mr. Wamp
Mr. Wicker
Mr. Wolf
Mr. Young

DISSENTING VIEWS OF HON. DAVID OBEY

The problems facing Americans today are in some respects
quite different from those the country faced last fall when
Appropriations were enacted for the current fiscal year. With
gasoline prices up as much as 50 cents a gallon, a two car
family can expect to pay about $600 dollars a year more to the
oil companies and they will be paying a similar increase in
heating and electrical costs. This is about a thousand or so
dollars per household that won't be available for replacing the
family car, buying new clothes or saving for college education.
As a result many businesses are suffering and the whole economy
has gotten softer.
While higher energy prices have affected households in
every part of the United States, the impact on the West Coast
has been much more severe. Many Americans in other parts of the
United States are still not aware of how serious the situation
is in the West and how much it may impact the overall national
economy. Because more than one in eight Americans live in the
three West Coast states and because so much of our export
oriented and high tech industries are concentrated in those
states, serious economic disruptions on the coast are certain
to have a big impact on the economies of virtually all of the
47 other states.
Ironically, this supplemental is before the Congress
largely because of energy problems. When fuel prices rise, the
cost of flying planes, fueling ships and driving tanks also
goes up and the military needs more money. This bill at least
partially addresses those costs. (Many who follow the defense
budget in detail, however, believe that the armed services may
still have to scale back training, maintenance and other
activities in the final months of the fiscal year because of
our failure to fully offset these higher fuel costs.)
But the major failing of this Supplemental is that it does
not address the energy crisis with respect to any other segment
of the society or the American economy. It does not take a
number of simple and straightforward steps that could be
critical in boosting the near term availability of electrical
power, protecting consumers from the extreme price gouging
occurring in some segments of the industry and insulating the
American economy from further damage from rising energy prices.
Finally, it does far less than is necessary to protect low
income and elderly households from the devastating impact that
high-energy prices have on their ability to afford food,
medicine and other necessities.

the energy problem

Fluctuations in the cost of energy have played a major role
in the performance of the American economy since the early
1970s. Rising fuel prices have contributed to at least three
recessions over the last three decades and falling fuel prices
have caused dislocations and bankruptcies in our own energy
producing states and wreaked serious havoc with the entire
international financial system.
The current situation differs from those of the past in
that it is caused not only by an imbalance between the demand
and supply of fossil fuels but also by serious emerging
structural problems in the industries that generate and
transmit electricity. While California and the West Coast
provide the most obvious examples of these problems they are
not strictly West Coast problems.
The deregulation and restructuring of the electrical
utility industry that began more than a decade ago has left
investors with considerable uncertainty as to how far
deregulation will eventually go and how competitive the market
for electricity will be. As a result there has been little
growth in capacity for either generating or transmitting
electrical power even though the economy has grown at a
remarkable pace for most of that same period. As demand for
electricity began to approach the capacity to generate it some
producers came to realize that by withholding output they could
force significantly higher prices in the newly deregulated
environment. As a result, consumers are faced with a market
that is neither competitive nor regulated.
There are three fundamental reasons that this problem is
more severe in California and on the West Coast. First,
California's attempt at deregulation was particularly inept.
Wholesale prices were unleashed while retail prices remained
regulated. That worked only as long as the price of the oil and
natural gas used for generating electricity continued to fall.
Once oil and gasprices began to rise, retail suppliers were
caught in an untenable squeeze and consumers were given no incentive to
conserve.
Second, the national power grid has never had significant
capacity to transmit electricity from east of the Rockies to
California and the West Coast. As a result, there is much less
competition in the wholesale electricity market in the West
than in other parts of the country.
Third, the West has relied more heavily on hydroelectric
power than most other parts of the country. Hydroelectric power
is dependent on rainfall and the Pacific Northwest where most
of the dams are located has been suffering from a severe
drought.
The combination of these factors has produced not only
dramatic increases in the price of electricity but also in
blackouts that jeopardize production and profitability in a
wide array of industries. Producers are typically charging
between 10 and 30 times the historical rate for electricity and
in some instances they have been able to charge as much as 129
times the historical rate. Typical homeowners in many parts of
the state have seen their monthly electricity bills go from
$100 to more than $800. In some communities more than half of
all small businesses are either in bankruptcy or in the process
of applying for bankruptcy protection. A significant number of
larger employers have actually shut down operations. In total,
electricity costs in California have gone from $7 billion a
year to around $70 billion. Even in a state with a trillion
dollar a year economy, that is a huge diversion of GDP from
other sectors of the economy to the utility companies.
That means that states like Wisconsin that produce capital
goods have seen their California markets evaporate and now have
surplus inventories. States like Michigan, Ohio and Missouri
are seeing layoffs in the automobile industry. Sales are off in
the publishing, recording and household products industries
largely because of the bite the electricity market in
California is taking out of that state's ability to grow and
consume products from other parts of the United States.

what can be done?

The United States faces both short-term and long-term
problems with respect to energy. Under existing technologies
our growing economy requires more and more energy, makes us
more and more dependent on oil from the Persian Gulf, and
therefore inevitably more vulnerable to political disruptions
in that part of the world. At the same time it increases air
and water pollution and jeopardizes the global climate. Finding
ways to reduce our consumption of energy will help control
prices, improve the quality of our air and water and reduce the
vulnerability of our economy to events in Southwest Asia.
Finding alternative forms of energy will also help achieve all
three of those objectives. Those activities require the kind of
long term and high-risk investments that the private sector is
not likely to undertake and they should be funded in our
regular appropriation bills as the high priority investments
that any sensible assessment of our economic and security needs
indicate they deserve.
But the electricity crisis could do serious damage to our
current prosperity if we do not take action now for short-term
remedies. The Democratic members of the Appropriations
Committee put forward a series of such initiatives when the
Committee met to consider this Supplemental on June 14th.
Action on this legislation had been delayed for months based on
the President's decision not to send forward a budget request
until the Congress had completed action on the tax bill. As a
result remedies to the energy crisis that could be underway are
only now being considered. Unfortunately, even when the
Supplemental budget request finally did reach the Committee,
Republican Congressional leaders maintained rigid discipline in
dissuading committee members of their party from supporting
these proposals. As a result none were adopted. That is deeply
disturbing since this Supplemental is the single best and--
perhaps only--legislative vehicle that can put resources to use
this summer in mitigating the crisis.
There were four separate amendments presented to the
committee, each dealing with a separate portion of the energy
crisis.
Temporary cost-of-service price limits in
Western states (Roll Call #6);
$350 million for national electric power
grid improvement loans (Roll Call #3);
$125 million for national hydroelectric
power improvement loans (Roll Call #2); and
$600 million in fiscal year 2001 and $1.4
billion in fiscal year 2002 for increased emergency
funding for the Low-Income Home Energy Assistance
Program (LIHEAP) (Roll Call #1).
Temporary Cost-of-Service Price Limits (Roll Call #6)
It is essential to address the price-limit issue on this
emergency supplemental appropriations funding bill. No one
disagrees that the current wholesale energy market in the West
is dysfunctional. Wholesale spot-market electricity rates that
used to be around $30 per megawatt hour in the past have ranged
between $200 and $300 a megawatt hour this spring, with typical
peaks as high as $1,000 per megawatt hour.
Federal Energy Regulation Commission (FERC) orders issued
to date this year put in place market-based limits and close
loopholes which previously allowed energy generators to avoid
FERC regulation, for example by shipping power out-of-state and
then reimporting it during emergencies at unreasonable prices.
FERC orders to date, however, do not prohibit all energy
providers from overcharging since FERC still uses market-based
instead of cost-of-service based rates. Recent FERC orders to
date do not effectively rectiviy overcharges that have occurred
since June 2000, nor compel refunds in cases where prices have
not been fair and reasonable.
During this past year, while ordinary citizens and small
businesses were suffering, a few energy generators and energy
marketers made record high profits on the backs of the Western
states. On June 5, Duke Energy confirmed that it sold
electricity in California for as much as $3,880 a megawatt hour
(129 times the historical rate)--double the rate that Governor
Grey Davis cited as an ``obscene'' example of price gouging.
In May, 41 Member of Congress introduced H.R. 1468, the
Energy Price and Economic Stability Act of 2001. The bill has
two main features: (1) It sets a temporary limit for wholesale
energy prices in the Western United States at a cost-of-service
(rather than a market based) rate, to include a reasonable risk
premium or a return on invested capital; and (2) it allows
States which are charged unjust and unreasonable electricity
rates since June 1, 2000 to obtain refunds, if they are
successful in bringing action in U.S. district court. The
bill's provisions expire in March, 2003. The price limits in
this amendment are essential to stabilizing the power market in
Western states until sufficient supply can be brought on-line
to allow competitive market forces to ensure fair and
reasonable prices.
H.R. 1468 is a very reasonable, moderate, flexible, and
temporary response to the severe energy crisis in the Western
states. The amendment proposed by Democrats an amendment to
this supplemental appropriations bill would simple enact H.R.
1468 as part of the larger bill, to provide immediate temporary
relief to millions of American citizens in a number of Western
states. A senior Republican leader said when the amendment was
offered that ``California made its bed, and now California
should sleep in it''. The Majority voted along party lines to
reject it (Roll Call #6).
Electric Power Grid Improvement Loans (Roll Call #3).
Electricity competition has led to significant changes in
the operation of the bulk power grid (the powers plants and
high-voltage transmissions facilities that make up the
wholesale power market). More and more electricity is being
shipped longer distances over a transmission system that was
originally designed only to provide limited power and reserve-
sharing among neighboring utilities.
Competition in electricity has already dramatically
increased the movement of power within and between regions of
the country. Over the next ten years, the Department of Energy
predicts that demand for electric power will increase by 25
percent, and more than 200,000 megawatts of new capacity will
be required. However, under current plans electric transmission
capacity will not be nearly enough to keep pace. This shortage
could lead to serious transmission congestion and electric
reliability problems. Regional shortages of generating capacity
and the increasing stress placed on the existing transmission
system are combining today to reduce the overall reliability of
electric supply in the country and are reducing the quality of
power delivered to end-users.
The best example of how this has developed into an
emergency situation is Path 15 in California, which consists of
two 84-mile 500 kilovolt transmission lines between the
northern and southern parts of the state. There is consensus
that Path 15 is a major bottleneck which contributes to
blackouts in the state. Between April, 1998 and January, 2001
there were 226 incidents where the flow on Path 15 exceeded the
south-to-north stability limits. As a result, electricity was
diverted to other transmissionlines and routed through Nevada
and Oregon. The California Independent System operator concluded that
for the period between September 1999 and December 2000 congestion on
Path 15 cost consumers $222 million.
California utilities would like to add a third transmission
line along the existing path at an approximate cost of $250
million to increase transfer capability by approximately 1,500
megawatts. The Secretary of Energy recently testified before
the Committee that constructing the third Path 15 line would
increase transmission system reliability, reduce the likelihood
of blackouts, and lead to greater competition and lower prices.
Unfortunately, due to the recent energy crisis, California
utilities that are in very poor financial condition have no
means to undertake such a project at this time.
The Secretary of Energy also recently testified that the
electric price spikes in the Midwest in the summer of 1998 were
caused in part by transmission constraints limiting the ability
of the region to import electricity from other regions of the
country with available electric power. During the summer of
2000, cool weather in the Midwest and hot temperatures in the
deep South created a heavy north-to-south flow of lower-cost,
efficient Midwestern electricity to serve air conditioning
loads. However, because the transmission system was unable to
accommodate the heavy loads, the South had to turn on
inefficient, older generation units. The Secretary also
testified that transmission constraints have been a persistent
cause of price spikes in New York in recent years.
The obsolescence of the nation's electric power
transmission grid has become an emergency that requires
immediate attention. The problem is not one limited to just
California, or even the Western states: it is clearly a
national problem that potentially affects all citizens. To
address it does not mean that there has to be a Federal
ownership or operational role in local or regional power
transmission. A loan program can provide the up-front cash to
accelerate projects around the country that will quickly lead
to improved, lower-cost, and more efficient power transmission.
As upgraded or new power lines or systems are used, the
recipients of loans can reimburse the government over time in a
manner that minimizes burden on local communities yet fully
recoups the cost of the government's loan which in the long
term would be zero.
The Democrats proposed an amendment to this bill to allow
the Secretary of Energy to provide $350 million in loans to
states, companies, and other outdated equipment would improve
system reliability by reducing the number of generators going
out of service and improve generator efficiency.
In the Pacific Northwest, up to 70 percent of electricity
is generated from hydropower. A continued lack of funding has
reduced the Corps' ability to sustain the reliability of its
hydropower production at its facilities in the Pacific
Northwest which are essential for providing power in the
Western states. Facilities in Oregon, Washington, and Idaho
have a backlog of repair items affecting not only the power
plant facilities, but also associated dam and reservoir
maintenance to assure continued safety and environmental
protection including fish habitat. The Army Corps of Engineers
needs $45 million to repair earthquake damage to hydropower
facilities and to correct major environmental deficiencies in
the Pacific Northwest in the states of Washington and Oregon.
Performance of this maintenance would also increase power
generation reliability through use of modern technology.
The Democrats proposed an amendment for $125,000,000 as
follows: up to $40 million for loans to operators of non-
federal dams for energy efficiency improvements, $45 million
for repairs and improvements to dams in the Pacific Northwest,
and $40 million for repairs and upgrades to dams operated by
the Army Corps of Engineers or the Bureau of Reclamation within
the Department of the Interior. None of these funds could be
used in a manner which increases environmental damage above
current levels.
The Majority voted along party lines to reject it (Roll
Call #2).

Low-Income Home Energy Assistance (Roll Call #1)

Whether it is families in the Northeast that heat their
homes with fuel oil, families that use natural gas in the
Midwest, or families using electricity in California and the
West, nearly every family in America has experienced the shock
of receiving a heating or cooling bill double or triple the
amount they paid the year before. For example, residential
heating oil prices were 48 percent higher in November 2000 than
in November 1999, and residential natural gas prices in the
fourth quarter of 2000 were 44 percent above the previous year.
These extraordinary energy price hikes have hurt our senior
citizens and low-income families the most. They already
struggle to heat and cool theirorganizations for improvements
to existing electric power transmission systems. The Majority voted
along party lines to reject it.

Hydroelectric Power Improvements (Roll Call #2)

Hydropower is a low-cost renewable resource producing no
airborne emissions that contribute to acid rain or the
greenhouse effect. Hydropower is the nation's leading renewable
energy source, accounting for 81 percent of the nation's total
renewable energy generation, and is considered to be the least
environmentally damaging major source of power. The United
States is one of the largest producers of hydropower in the
world, second only to Canada. Hydropower ranges between 10 to
12 percent of U.S. electrical generation. Without hydropower,
the United States would have to burn an additional 126 million
tons of coal, 25 million barrels of oil, and 452 billion cubic
feet of natural gas annually. Simply increasing the efficiency
of the nation's existing hydroelectric equipment by one percent
would result in an increase in annual power generation of about
3.3 billion kilowatt hours. A 1998 Department of Energy report
suggests that our nation has the ability to generate up to
4,316 megawatts of additional electric power by upgrading
equipment at hydroelectric facilities now operating.
There are non-Federal dams in all 50 States at 2,162 sites.
Some non-federal owners of hydroelectric dams continue to
operate turbines that were installed more than a century ago.
The Army Corps of Engineers has 75 hydropower facilities
throughout the country that account for about 24 percent of the
hydroelectric power capacity and about 3 percent of electric
power in the nation, making the Army Corps the 4th largest
utility in the nation. The backlog of maintenance for these
facilities is $400 million.
At a recent hearing conducted by the Subcommittee on Energy
and Water, the Chief of the Army Corps of Engineers testified
that many of the Corps' 75 hydroelectric dam power plants have
generating equipment that is 30 to 40 years old which is in
need of upgrade or replacement. The Chief further testified
that the Corps had $23.7 million of hydropower critical
maintenance backlogs that threaten efficient power generation
of dams in Arkansas, Georgia, Idaho, Missouri, Montana, North
Dakota, Nebraska, Oklahoma, South Dakota, Texas, and Virginia.
Repair and replacement of homes, put food on the table, buy
medicines, and meet other basic necessities. Recent estimates
show that this fiscal year low-income families will pay, on
average, about $1,530 for annual residential energy costs or
about 20 percent of their annual income--a burden four times
higher than the average 5 percent of annual income paid by
other families. Extraordinary energy bills are taking their
toll on these vulnerable families and senior citizens.
For years, the Low-Income Home Energy Assistance Program
(LIHEAP) has been one of the few critical lifelines for our
most vulnerable seniors and families to deal with energy costs.
But with record high energy prices, it is more important now
than ever. Nearly 80 percent of LIHEAP recipients have incomes
at or below the federal poverty level ($17,650) and about a
third of LIHEAP households include at least one elderly person
in the household. Another 29 percent of LIHEAP families have a
child age 5 years or under, and 30 percent of LIHEAP households
have at least 1 person who is unable to work due to disability.
Unfortunately, in recent years, we have seen the regular
LIHEAP appropriation drop from a high of $2.1 billion in 1986
to $1.4 billion today, The number of households that receive
assistance under LIHEAP has declined from 7.1 million when the
program first began--serving 36 percent of the total eligible
population--to only 5 million today--serving only 17 percent of
the eligible population at a time of the highest energy prices
in recent years. Community action agencies throughout the
nation that administer LIHEAP report having to turn away
hundreds of eligible clients because of lack of resources. In
all, 20 states including Wisconsin, Alabama, California,
Georgia, Kentucky, Illinois, Iowa, Kansas, Massachusetts,
Minnesota, New Mexico, New York and Rhode Island have exhausted
or nearly exhausted their LIHEAP funding. And, those who are
fortunate enough to get LIHEAP assistance receive only enough
to pay about one quarter of their total residential energy
bill.
The $150 million requested by the President and the $300
million included in this bill by the majority are grossly
inadequate to respond to this detrimental decline in LIHEAP
funding. If LIHEAP served the same proportion (36 percent) of
eligible seniors and low-income families that it served twenty
years ago at a benefit level commensurate with recent energy
price increases, the fiscal year 2001 LIHEAP appropriation
would need to be $4.6 billion--$2.3 billion more than the
(regular and emergency) resourcescurrently available. The
Democratic Amendment offered by Mrs. DeLauro would have enacted an
immediate $600 million emergency appropriation for LIHEAP while also
providing a $1.4 billion fiscal year 2002 appropriation for the regular
LIHEAP block grant to ensure that energy assistance to poor families is
not disrupted this fall in the event that the enactment of the fiscal
year 2002 Labor-HHS-Education bill is delayed beyond the start of the
new fiscal year. This amendment was a much more appropriate response to
this funding shortfall than either the White House or Republican
Leadership, but was rejected by the majority by a vote of 29:32.
The Democratic amendment (Roll Call #1) to provide an
additional $600 million for LIHEAP would have accomplished
several purposes. First--it would have extended energy
assistance to an additional 1 million low-income senior
citizens. Second, the amendment would have provided the funds
needed to prevent utility shut offs for thousands of families
with unpaid bills from this past winter. Third, the amendment
would have provided a cushion to take care of any heat
emergencies this summer. Fourth, the amendment would have
provided for any unforeseen energy emergencies such as the
flooding that occurred last week in Texas and Louisiana, which
may create an additional need for energy assistance. Fifth, by
providing supplemental funding now, the Democratic amendment
would have enabled states to stretch available LIHEAP resources
by purchasing heating fuel in the summer months when it is the
cheapest. Finally, the amendment would have provided a $1.4
billion FY 2002 appropriation for the regular LIHEAP block
grant, ensuring no interruption in the delivery of critical
energy assistance to needy families this fall.
As the energy crisis continues and more families and
seniors go without adequate LIHEAP assistance, utility
companies across the country are reporting huge increases in
arrearages. Survey results from 19 states show a total of $910
million owed in May 2001 for unpaid utility bills by 4.3
million families. A tally for all 50 states could easily be $2
billion or more in outstanding utility bills. For instance:
In California, Southern California Gas experienced
a 96 percent increase in delinquencies among its residential
customers from February 2000 to February 2001, and arrearages
increased from $51 million to $100 million, with over half a
million customers in arrearage.
Georgia reported 200,000 families owing $80
million in arrearages and facing disconnections.
Iowa reported 180,000 families owing more than
$34.5 million, more than double last years amount.
Kentucky reported $31 million in natural gas
arrearages with 94,000 pending shutoffs.
Michigan reported 1.3 million customers with $98
million in arrearages.
In New Jersey, the state's largest utility has
sent out shut off notices to 276,000 families with arrearages
of $271 million.
Pennsylvania reported between 150,000 and 200,000
families in arrears. Pennsylvania utilities report a 64 percent
increase in people with outstanding heating bills.
Entergy Texas reported a 41 percent increase in
arrearages from $7.3 million to $10.3 million.
In Wisconsin, nearly 500,000 households were in
arrears on electric and gas utility bills, with $98 million
owed--an increase of 38 percent over last year.
Following these Minority Views, we have attached (1) a
table displaying the number and percentage of eligible
households served by LIHEAP in each state, (2) a survey
conducted by the National Energy Assistance Directors'
Association summarizing the funding status of LIHEAP in the
states, and (3) information provided by the National Energy
Assistance Directors' Association on utility arrearages in 19
states and the District of Columbia.

Other Problems with this supplemental

A ``Puzzling'' Rescession: FEMA (Roll Call #1)

This supplemental appropriations bill takes funds from
several critical items in order to offset other funding within
this bill. First, the bill rescinds $389 million from the
Federal Emergency's Management Agency's Disaster Relief Fund.
The rationale provided is that since there is close to two
billion dollars currently in the Fund, a $389 million
rescission will still leave enough funds to future disasters.
The fact is, however, that these disaster assistance dollars,
both for disaster victims and for public facilities such
asrepair of roads and bridges, are already earmarked for previous
disasters or for projected disasters. When these funds are needed, this
proposed rescission could preclude prompt assistance to individuals or
municipalities affected by a disaster. Additionally, the
Administration, in their response to the proposed supplemental
appropriations bill states, `` * * * we are puzzled by the proposed
rescission of $389 million in disaster relief funds for the Federal
Emergency Management Agency (FEMA). The rescission would eliminate much
of the normal FEMA funding needed by the agency to provide quick and
effective assistance to disaster-stricken communities and victims,
should such action be requested in the future * * * '' Given the latest
storm, Tropical Storm Allison, which is larger than the ``average''
disaster, this is not the time to be rescinding funds from FEMA's
Disaster Relief Fund.

HUD

Second, this bill rescinds $114.3 million from the
Department of Housing and Urban Development's Housing
Certificate Fund. At this time, $114.3 million from this
account is not available in fiscal year 2001 and interfering
with this fund threatens HUD's ability to assist low-income
individuals. These recaptured funds are excess funds that are
more than one year old. HUD officials cannot be certain that
there will be sufficient excess funds to rescind. Because this
rescission must come from this account only, the only option is
for HUD to take $114.3 million from reserves. Taking funds from
HUD reserves or having this rescission in any way affect low-
income people is unacceptable.

Job training

The bill rescinds $359 million from FY 2002 advance
appropriations for job training formula grants. This rescission
is unwise, ill-timed, and damaging. It takes back funds which
states and localities are already counting on for use during
the job training program year beginning on July 1, 2001--just
two weeks from now. The rescission represents and 11 percent
cut for adult job training and a 16 percent cut in programs to
aid workers dislocated by plant closings and mass layoffs. With
unemployment and layoffs rising, this is exactly the wrong time
to be cutting back on programs that assist unemployed workers
obtain the skills training and job search assistance they need
to find new, decent-paying jobs.
The rationale given by the Committee for this rescission is
that balances of unexpended funds held by state and local job
training agencies have apparently been growing during the
current year. However, the main reason for this growth in
unexpended balances is delays caused by the need to revamp
local programs and governing bodies to conform to the new
federal authorizing law, the Workforce Investment Act, which
took effect last July 1. There is no reason to believe that the
need for job training services has diminished, or that programs
will not return to their normal expenditure rates once the
transition to the Workforce Investment Act is over. We should
not be telling local job training agencies to overhaul their
programs in response to new federal law, and then penalize them
with a rescission when that transition produces some spending
delays.

Highway Emergency Relief Funding

The highway emergency relief program pays for the costs of
fixing roads and bridges damaged by floods, earthquakes and
other natural disasters. The FY 2001 Transportation
Appropriations Act contained $720 million in emergency funding
for this program. That funding, plus the $100 million in
mandatory funding this program receives each year, has all been
allocated to states to pay for previous disasters. Today, there
is no funding available for this program and there is a $33
million backlog of requirements from natural disasters that
occurred this fiscal year--the earthquake in the state of
Washington, ice storms in the states of Texas and Oklahoma, and
a flood in Puerto Rico. Estimates are not yet available for the
damage done from the most recent flooding in Texas. The Federal
Highway Administration could borrow from other accounts to pay
for these emergency needs, but the only funding not allocated
to the states already is for the Transportation Infrastructure
Financing credit program and only $44 million is currently
available. It is highly unlikely that this $44 million would
last through the end of this fiscal year. Additional emergency
funding of at least $100 million for this program should have
been included in this emergency supplemental appropriations
bill. The majority erred in not properly addressing this
emergency requirement.

Winter Olympics

Democrats are also concerned with the Administration's and
the Majority's failure to provide adequate security for the
2002 Salt Lake City Winter Olympics on a timely basis. In
August 1999, the Secret Service was given responsibility for
designing, planning, and implementing security for the 2002
Games. In addition, several Treasury law enforcement agencies
will provide personnel in support of the effort. However, the
President did not request any additional funding in fiscal year
2002 for Treasury agencies to cover these costs. Recognizing
this error, the Administration subsequently requested an
additional $60.6 million as part of the supplemental funding
request, but the Majority chose not to include the required
funding in this bill. Given the unrealistic allocations
required by the Majority's budget resolution, it is not clear
if and how this requirement can be accommodated in the fiscal
year 2002 bill. Effective security is key to a successful
Olympics, and the Majority needs to ensure that sufficient
funding is available for Treasury law enforcement agencies. It
was a mistake not to provide funding for Winter Olympics in
this bill.

conclusion

It is a shame that this emergency supplemental
appropriations bill contains nothing of substance to address
the immediate needs of American citizens who face a national
energy crisis according to the President. The citizens in
Western States will endure more hardship as the summer unfolds.
Democrats offer national initiatives for real near-term
solutions that could be implemented quickly on a bipartisan
basis. It is unfortunate that Republicans reject such
proposals, and instead have produced this supplemental
appropriations bill that fails to respond to the national
energy crisis in any meaningful way.

LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM
[Estimated number and percent of households served, FY 2001]
----------------------------------------------------------------------------------------------------------------
Households served Households not served Elderly not served
State --------------------------------------------------------------------
Number Percent Number Percent Number Percent
----------------------------------------------------------------------------------------------------------------
Alabama*................................... 41,468 8.3 460,343 91.7 197,197 42.8
Alaska..................................... 7,500 13.4 48,271 86.6 8,740 18.1
Arizona.................................... 25,000 5.5 433,425 94.5 149,349 34.5
Arkansas................................... 70,000 22.6 239,354 77.4 109,530 45.8
California*................................ 123,280 3.4 3,466,979 96.6 1,129,586 32.6
Colorado*.................................. 75,000 21.9 267,962 78.1 87,355 32.6
Connecticut................................ 68,000 16.6 342,270 83.4 158,525 46.3
Delaware................................... 11,000 14.4 65,591 85.6 32,213 49.1
District of Columbia*...................... 15,000 21.0 56,562 79.0 24,077 42.6
Florida.................................... 42,500 2.6 1,583,788 97.4 726,918 45.9
Georgia*................................... 120,000 15.2 666,893 84.8 190,696 28.6
Hawaii..................................... 5,300 4.2 121,891 95.8 48,041 39.4
Idaho...................................... 30,930 26.0 88,089 74.0 31,341 35.6
Illinois*.................................. 350,000 27.9 903,643 72.1 518,146 57.3
Indiana.................................... 121,370 21.1 454,085 78.9 229,338 50.5
Iowa*...................................... 80,000 28.9 196,391 71.1 80,817 41.2
Kansas*.................................... 25,000 9.2 247,736 90.8 108,081 43.6
Kentucky*.................................. 209,748 49.9 210,262 50.1 148,569 70.7
Louisiana.................................. 92,100 18.6 403,885 81.4 183,634 45.5
Maine*..................................... 58,000 48.3 62,079 51.7 33,913 54.6
Maryland*.................................. 70,000 14.5 411,806 85.5 192,534 46.8
Massachusetts*............................. 123,000 16.3 632,770 83.7 n/a n/a
Michigan................................... 362,000 34.7 680,702 65.3 298,029 43.8
Minnesota*................................. 107,000 23.6 346,129 76.4 163,569 47.3
Mississippi................................ 39,750 11.9 295,084 88.1 102,676 34.8
Missouri................................... 110,198 20.2 435,361 79.8 187,986 43.2
Montana*................................... 17,500 18.1 79,340 81.9 24,600 31.0
Nebraska*.................................. 25,500 14.5 150,542 85.5 74,936 49.8
Nevada..................................... 8,700 5.3 156,313 94.7 57,679 36.9
New Hampshire*............................. 27,500 23.7 88,777 76.3 47,405 53.4
New Jersey................................. 150,000 16.6 754,349 83.4 391,625 51.9
New Mexico*................................ 48,000 25.5 140,568 74.5 51,558 36.7
New York*.................................. 818,000 35.1 1,513,183 64.9 724,283 47.9
North Carolina............................. 151,000 17.7 702,356 82.3 292,147 41.6
North Dakota............................... 14,000 18.5 61,632 81.5 27,714 45.0
Ohio....................................... 224,700 18.1 1,014,102 81.9 421,052 41.5
Oklahoma................................... 86,000 24.4 266,521 75.6 105,912 39.7
Oregon..................................... 88,547 27.1 238,533 72.9 77,856 32.6
Pennsylvania............................... 280,750 20.5 1,086,783 79.5 558,902 51.4
Rhode Island*.............................. 26,000 20.3 101,855 79.7 67,565 66.3
South Carolina............................. 64,755 15.1 362,711 84.9 140,244 38.7
South Dakota............................... 15,000 20.5 58,316 79.5 23,202 39.8
Tennessee.................................. 95,630 15.7 511,809 84.3 179,386 35.0
Texas...................................... 53,459 2.5 2,050,915 97.5 690,490 33.7
Utah*...................................... 30,000 21.9 106,844 78.1 32,988 30.9
Vermont.................................... 23,900 39.2 37,079 60.8 19,723 53.2
Virginia................................... 83,518 12.8 571,146 87.2 227,810 39.9
Washington................................. 75,000 14.6 438,476 85.4 130,032 29.7
West Virginia.............................. 55,000 23.2 182,397 76.8 90,696 49.7
Wisconsin*................................. 110,100 22.5 378,737 77.5 176,561 46.6
Wyoming.................................... 10,000 19.5 41,395 80.5 18,258 44.1
--------------------------------------------------------------------
Total................................ 4,965,703 17.0 24,216,030 83.0 9,793,484 40.4
----------------------------------------------------------------------------------------------------------------
* These states have depleted or nearly depleted their FY 2001 LIHEAP allocations, according to the National
Energy Assistance Directors' Association.

* Source: National Energy Assistance Directors' Association estimates, based on data collected by the Department
of Health and Human Service.

National Energy Assistance Directors' Association State-by-State Low-
Income Home Energy Assistance Program Survey Responses (June 11, 2001)

Note: The following provides a state-by-state summary of
available information on the status of each state's Low-Income
Home Energy Assistance Program (LIHEAP). As of June 11, 43
states and the District of Columbia have responded to the
survey. This survey will be updated as additional information
becomes available.

key points

Of the states that have responded to date to the
NEADA summer survey, 19 states and the District of Columbia
reported that they were either out of funds or had very low
balances. States reporting they were out of funds: District of
Columbia, Iowa, Maine, Minnesota, Montana, New Hampshire, New
Mexico, Rhode Island, and Wisconsin. States reporting very low
balances: Alabama, Colorado, Georgia, Illinois, Kansas,
Kentucky, Maryland, Massachusetts, Nebraska, New York, and
Utah.
The remaining 24 states have at least the same
amount of funds available to help low-income families as they
had last year at this time: Alaska, Arizona, Arkansas,
California, Connecticut, Delaware, Florida, Hawaii, Idaho,
Indiana, Michigan, New Jersey, Nevada, North Dakota, Ohio,
Oklahoma, Oregon, South Carolina, South Dakota, Vermont,
Virginia, Washington, West Virginia and Wyoming.
The NEADA survey follows two earlier surveys this year. The
first survey reported that the number of new families applying
for program assistance had increased by more than 1 million,
bringing the total of recipient families up to more than 5
million. The second survey, reported that 4.3 million
households in 19 states and the District of Columbia were in
arrears on their utility bills and faced possible shut-off of
service. Summary tables from the two surveys are included at
the end of the narrative.
The federal Low-Income Home Energy Assistance Program
(LIHEAP) provides heating and cooling assistance to low-income
families. During the current fiscal year (October 1, 2001 to
September 30, 2002) the program is expected to provide
assistance to at least 5.1 million households, an increase of
1.1 million over last year. Due to the rapid increase in demand
for program services, many state program managers responded by
spending most, if not all, of their program funds. In contrast
to previous years, states retained fewer funds in order to
address the immediate needs of low-income applicant households.

Alabama

Alabama's LIHEAP program has about $2-3 million remaining
this year, which is less than last year as a result of the
worst winter weather for many years and increases in fuel
prices. All remaining funds will be expended for cooling
assistance. The state has always had a cooling program, but
there are less funds available this year. It is estimated an
additional $5-6 million is needed for summer cooling,
especially if the state experiences a severe summer.

Alaska

Alaska has about 9% of its funding left, which is the same
as last year, in spite of an unusually warm winter this year.
Although there are no winter shut-off moratoria, the state does
help with arrearage payments and shut-off avoidance throughout
the winter as part of the regular heating assistance program.
There is no summer cooling program.

Arizona

Arizona runs a year-round program for heating and cooling
and the supplemental contingency dollars received this fiscal
year will be added into contracts effective July 1, 2001. These
funds will be helpful in providing either/or higher benefit
payments and serving more households. Arizona is a hot weather
state and summer has arrived early this year, with triple
digits in early May. As a result, more households are expected
to apply and higher benefits will be needed to offset increases
in utility rates.

Arkansas

Arkansas has $1.1 million remaining as of June 1, 2001,
compared to $558,800 at this time last year. No cooling
assistance program has been planned for the summer. Unless
additional funds are released, Arkansas most likely will not
have a summer cooling program. The state will use all of the
remaining funds to avoid shut-offs, for connection/reconnection
fees and on arrearages, if they are creating a crisis situation
for the household. Approximately $1.2 million is needed to
implement an adequate cooling program. Because of the harsh
winter in Arkansas this year, many families are still trying to
pay large arrearages on both gas and electricity bills in
addition to their current bills.

California

California has about $900,000 left to provide shut-off and
arrearage repayment assistance. The state is also disbursing
about $30 million dollars from June 1-August 31st for cooling
assistance and has appropriated $120 million dollars to provide
supplemental funding as a result of higher prices due to the
state's energy crisis.

Colorado

Colorado's caseload increased significantly this year and
there are still 1,000 applications to be processed that were
received before the program ended on April 30th. The current $1
million balance had been targeted as carryover for the start-up
costs of next year's program, but will instead be used to fund
the remaining applications (at a cost of approximately
$150,000) and continue the year-round furnace repair and summer
fan distribution programs. The summer Crisis Intervention
Program (estimated to cost $200,000) and the summer fan
distribution program (estimated to cost $50,000) may be
discontinued for lack of funding and it appears very likely
there won't be any start up money for next season. By
comparison, last year at this time there was $2.5 million
remaining after most cases had been processed.

Connecticut

Connecticut operates only a heating assistance program and
anticipates approximately $4 million of this year's funding
will be carried forward for start-up of next year's program. No
cooling assistance program is planned, but one will be provided
if weather conditions warrant it and funds are available early
in the season.

Delaware

Delaware will have approximately $110,000 of unrestricted
funds remaining at the end of June, compared to $0 last year at
this time. The state has set aside $1.1 million for the Summer
Cooling Assistance Program this year, compared to $600,000 set
aside last summer. Although no funds were earmarked for
arrearages last year, the $110,000 balance this year may be
utilized for that purpose. Due to a moratorium from the Public
Service Commission that prohibited the state's largest electric
and gas utility from terminating a customer's utility services
for about 16 months, many households are now faced with
arrearages in the thousands of dollars. Specific numbers of
households that may be eligible are not available, but the
$110,000 remaining at this time would only help approximately
366 households if they each receive a benefit of $300. Delaware
is considering avoiding paying any arrearages if not enough
households can benefit from the $110,000 and using the funds
instead to purchase and install new furnaces under the
weatherization program. Or the state may provide assistance to
the most severe cases of arrearages and help about 110
households at $1,000 each. If Energy Emergency Contingency
Funds are released this summer, they will primarily be used to
help low-income customers with arrearages who are facing
service terminations.

District of Columbia

The District of Columbia operates a 12 month program but
ran out of funds at the end of April. There is a the District
might be able to use some local TANF funds to provide
supplemental cooling assistance this summer.

Florida

By the end of June, Florida's LIHEAP program will have
expended all the winter contingency funds. As a result of the
increase in base funding this year, there is approximately $1
million (18%) more that will be available for summer cooling
assistance than was expended last year. Typically, the state is
able to provide cooling assistance to less than 5% of the
eligible population. With the increase in base funding this
year the summer cooling program will be able to assist 1-2%
more of these eligible households. At this time, there does not
appear to be a problem with a backlog of arrearages.

Georgia

Any remaining LIHEAP funds in Georgia at the close of the
regular program will be used for cooling assistance. Last year
a total of $5.4 million was expended for cooling assistance,
and this year the current balance available is only $2.1
million as of May 7, 2001. All of these remaining funds will be
used for cooling assistance. However, at a maximum of $194 per
household, only 10,644 households will be able to receive
cooling assistance. Based on last year's expenditure data, an
additional $1 million is needed for summer cooling. Sufficient
funds are also not available to meet the needs for arrearage/
shut-off avoidance assistance. In order to provide arrearage/
shut-off avoidance assistance, an additional $3.7 million is
needed, since there are 200,000 households in Georgia who owe
approximately $80 million in natural gas bills alone.

Hawaii

Hawaii's program does not begin until June 1.

Idaho

Idaho has a current balance of $2.9 million as compared to
$1.3 million last year at this time. None of the remaining
dollars are targeted for cooling assistance or arrearage/shut-
off prevention programs at this time.

Illinois

Only $5 million remains in the Illinois LIHEAP program this
year, compared to $17 million last year. This $5 million
balance will be used for summer energy assistance (last year's
effort expended $10 million). The state committed $6 million
this year for arrearage and shut-off prevention programs
(compared to $2 million last year). The Illinois program
estimates it needs $15-20 million for a statewide summer
program and $10-15 million for arrearage/shut-off avoidance
assistance.

Indiana

The State of Indiana has a little less than $2 million
dollars remaining in the Energy Assistance budget (which
includes LIHEAP & oil overcharge funds). These funds (about the
same amount as last year) will all be used for summer cooling
and summer fill. Funds have not been set aside for arrearage
assistance this year, nor have they been in the past. The state
is concerned about meeting the needs out of next year's
funding, when it is anticipated many households will be coming
in with high amounts in arrears.

Iowa

Iowa has exhausted all funds available. Approximately
79,000 households received a benefit that lowered their out-of-
pocket expense (energy burden) to 6% of total household income.
There are still approximately 5,000 eligible households that
applied, but who, in the absence of supplemental funding, will
not receive any benefit. Last year at this time, 62,000
households had received a benefit that lowered their out-of-
pocket expense (energy burden) to 3.5% of total household
income and there was a balance of approximately $2 million
unexpended that was available for cooling emergencies if
necessary. Ultimately, those funds were used for contracting
with deliverable fuel vendors, locking in a lower price in
August for delivery beginning in October. Unfortunately, this
will not be an option this year. If the remaining 5,000
households are to receive the average benefit that the 79,000
households received, an additional $2.8 million is needed. In
the interim between now and the receipt of any supplemental
funding, those 5,000 households will have no alternative other
than to make payment arrangements that include the hoped-for
LIHEAP benefit.

Kansas

By March 12th it was determined that applications for
LIHEAP benefits were exceeding the 18.6% increase originally
anticipated for the federal funds available. As a result,
central office instructed field staff to pay only eligible
households meeting the newly defined emergency criteria of: (1)
disconnected, (2) out of fuel, or (3) tagged for disconnect
(only households that were not regulated under the shut off
moratorium, which had been extended to April 30th). LIHEAP
benefits were paid out at 100% of the determined benefit matrix
for a portion of the LIHEAP program. Since the amount of
funding available was not sufficient to provide benefits at the
100% amount to all eligible households, the remaining eligible
households were paid at a prorated portion of the original
benefit matrix amount (47%). If the decision had not been made
to pay prorated benefits, approximately 7,000 eligible
households would not have received any type of energy
assistance in a winter in which fuel costs escalated and the
temperatures were extremely cold. The prorated benefit method
was chosen in order to provide all eligible households as much
of a benefit as possible with the remaining federal funds
available. If additional funds become available the agency will
further supplement benefits to those households that received
only a prorated amount.

Kentucky

Kentucky only has $100,000-$150,000 of LIEHAP funding
remaining. Approximately $7 million is needed to operate a
cooling program. Already, early in the season, areas of the
state have been experiencing temperatures in the high 80's with
high humidity. In addition, nearly \3/4\ of the state has been
declared to be in a severe drought.

Maine

All of Maine's LIHEAP funds have been obligated and there
will not be any carryover over for next year. There are no
funds available for summer cooling or arrearage and shut off
avoidance programs, which is the same situation the state
experienced last year.

Maryland

Maryland has less than $1 million remaining. These funds
will be used for furnace repair and replacements. The state
does not have any funds available for cooling assistance.

Massachusetts

Massachusetts will deplete all federal funds with a
possibility of having up to $1 million left for carryover to
next fiscal year. There will be no funds available for cooling
assistance.

Michigan

Michigan does not expect to have any funds left at the end
of the program year. Of major concern is that the program will
need to revert to FY 2001 program limits because of reduced
funding in FY 2002 (unless funding is increased to include all
amounts awarded as supplemental appropriations in FY 2001).
This means the program will not be able to increase eligibility
to higher levels of poverty, nor sustain CAPS (rates paid for
energy), despite the fact that customer expenses are
increasing. Additionally weatherization efforts could not
continue at the same level, thereby exacerbating the long-term
energy consumption problem.

Minnesota

Applications are up 34.6% over last year at this time and
the benefit level is 34.7% larger to address higher energy
costs. All funds have been exhausted and new applicants are
being turned away, even though the plan states that
applications will be taken until June 1, 2001. Last year there
were sufficient funds to serve all who applied and an
additional $4 million to carryover from FY 2000 to FY 2001.
Minnesota has not traditionally offered cooling assistance. The
FY 2001 state plan states that a medically necessary cooling
program will be operated if funds are available, but it does
not appear funds will be available for this purpose.
The state's crisis program, which addresses disconnections
and emergency fuel deliveries, has increased this year by
almost 400% over the previous year. The Public Utilities
Commission estimates that total customer arrearages are $71
million. There are not sufficient funds to address those
households who are still seeking assistance because of pending
disconnects. Last year the program was able to assist all
eligible households who applied. The PUC also indicates there
are a minimum of 1,000 households statewide who have medical
needs for cooling who may be income eligible for LIHEAP. An
additional $300,000 would be needed to provide each of these
households a benefit of $300. To serve all the applications
currently pending would require an additional $1.9 million.
Another $3 million in requests for crisis assistance are
expected by June 1.
The Minnesota Department of Revenue mailed applications to
80,000 senior households early in April, and those applications
are just coming in now. Last year a similar mailing resulted in
a 12% return. If a similar return is experienced this year, an
additional $5.4 million will be needed to serve these
households with the average grant of $558. In previous years
carryover funds were used to pre-buy propane and/or oil for the
next heating season. Summer purchases have greatly benefited
low-income households, providing them with more fuel for their
money. In past years, the average early pre-buy program has
purchased $2.3 million in delivered fuels. Unfortunately, there
are not sufficient funds to pursue this activity this year. The
total amount Minnesota needs for the remainder of this program
year is approximately $12.8 million in additional funds.

Montana

Montana has no remaining funds from the regular and
emergency appropriations this year, compared to a $400,000
balance last year. The state has not been able to offer summer
cooling assistance or assistance with arrearages.

Nebraska

Nebraska has approximately $670,000 that has not been
designated for client payments, weatherization, administration
or FY 2002 carryover. Approximately $1.7 million that was
designated for FY 2002 carryover can still be used in the
current year. These amounts are less than the balances last
year by about $1 million. Approximately $350,000 will be
expended in the original cooling payment and then as other
households qualify for cooling, the additional payments will
increase. This initial payment is about the same as last year.
During the summer months about $75,000-$100,000 a week has been
expended for additional cooling and cooling crisis payments.
Unless additional funds are received, Nebraska will not be able
to help with any additional heating arrearages or shut-off
notices. Clients are being advised to make payments over the
summer and heating crisis assistance will be available next
winter, as in the past. An additional $2 million would allow
the state to avert more heating shut-offs.

Nevada

Although funding for Nevada's LIHEAP program increased by
15% in FY 2001, expenditures were up 22% compared to FY 2000, a
shortfall of approximately 7% for FY 2001. This summer cooling
assistance will be available statewide instead of only in the
southern part of the state, at a total expected cost of
$724,711 (up from $457,284). Due to limited federal funding in
Nevada, the program was not designed to pay off arrearages, but
eligible households can avoid shut-off by paying a portion of
the outstanding balance. FY 2001 funding will be used to start
up the 2002 LIHEAP Program effective July 1, 2001, which will
run through May 31, 2002 (11 months). It is estimated 42% of
the funding used will be used to assist households, statewide,
with cooling costs. This is a new component. FY 2000 funding
was not delineated for specific cooling needs. Only households
in southern Nevada had their regular LIHEAP benefit split
between their heating provider and their cooling provider.
Approximately 55% of the households receiving LIHEAP benefits
live in the southern part of the state where temperatures are
easily above 100 degrees during the summer.
Approximately 146,000 households in Nevada are below 150%
of the poverty level. Natural gas prices have increased 68%
statewide, and electric costs, thus far, have climbed
approximately 14%. However, incremental electric increases up
to 45% have been presented to the PUC and are likely to be
approved. Propane has increased 75%. Nevada increased the
benefits for clients using these three major fuel sources,
retroactively. The average benefit will be $304 once these
retroactive supplemental payments are made (within the next 30
days). As such, if Nevada receives the same funding in FY 2002
as was received in FY 2001, the LIHEAP program will only be
able to serve 7,988 households. This represents only 5% of the
state's low-income households at 150% of poverty. Experts have
presented data to the Nevada Legislature projecting the average
monthly summer electric bill in southern Nevada will be $275 by
next year. LIHEAP pays a one-time average benefit of $304 per
year. Low-income households, particularly those on fixed
incomes such as the elderly and disabled, will be unable to pay
such high cooling costs. As it is now, these people must make
choices between medicine, food, or power.

New Hampshire

New Hampshire reports that all combined emergency/regular
appropriations for FY 2001 have been obligated. Any remaining
funds will be used to restore monies originally targeted for
the state's weatherization program. The increased demand for
assistance this winter season (18% increase in the number of
households enrolled) caused the state to suspend other fuel
assistance program components including the Summer Pre-buy
program. At this point, sufficient funds do not exist to fully
restore the two programs for this program year. Last year at
this time approximately $409,185 had not been obligated. A
cooling assistance program is not a regular component of New
Hampshire's LIHEAP program.
At this point, the state is not in a position to further
address the need to assist with arrearage payments and shut-off
avoidance. Due to the demand for assistance and available
LIHEAP funding, the program could not be extended beyond April
30th this year. Last year, the program was open for an
additional month (to May 21, 2000). Although an analysis has
not yet been completed on the amount of funds necessary to
assist with arrearage/shut-off avoidance, the largest utility
in the state has reported that as of March 30, 2001 the amount
of residential accounts receivable had increased by 84% over
last year (approximately $2.2 million).

New Jersey

New Jersey has not exhausted its FY 2001 funding. Although
New Jersey raised its income limit to 175% of the federal
poverty level and extended its application period, the state
did not receive as many applications as anticipated. Remaining
funds (up to 10% of total funds) will be transferred to the
Weatherization Assistance Program after all outstanding
applications for assistance are processed.

New Mexico

New Mexico has no remaining LIHEAP funding. The program has
remained open with money received from the State. Even with the
supplemental benefits that were issued, there are daily reports
of households losing service or unable to purchase propane. The
average benefit this year is $250, whereas the average benefit
in FY 2000 was $118.

New York

As of May 25th, New York estimates a LIHEAP funding balance
of only $23 million, which includes funds carried forward from
FY 2000 to FY 2001. Last year at this time the balance was $35
million. No cooling assistance is provided, nor does the state
set aside funds for arrearage payments and shut-off avoidance.
Crisis funds are still available to avert shut-offs through the
HEAP emergency component.

North Dakota

After meeting all commitments (including weatherization and
other services), North Dakota will have about $2.5 million
remaining. There is no ``cooling program'' as such, but the
program does purchase air conditioners for people with a
medical need, at a total cost of approximately $200,000.
Expenditures in the emergency (crisis) program have been 84%
higher this year than last.

Ohio

Ohio's LIHEAP program will expend about $5 million on
cooling assistance this year, which is the same as last year. A
supplemental heating assistance benefit will be provided to
everyone assisted in FY 2001 with the remainder of the
uncommitted funds (estimated to be around $20 million). Because
so many households had such high natural gas bills this winter
(and 75% of the households assisted use natural gas), this
additional benefit will lessen the chances of these households
facing a shut-off during the summer. This additional benefit
was not provided in FY 2000. The contingency funds provided
benefits to an additional 50,000 households this year, who will
have to be turned away and/or benefit/eligibility levels
reduced if funding in FY 2002 is not at the same level as FY
2001.

Oklahoma

In addition to the $16.2 million Oklahoma received in
LIHEAP funds this year, $11.5 million was transferred into the
program from TANF, and $4.8 million was received from the
state. The estimated balance remaining, after excluding the
$1.5 million set aside for crisis assistance and summer
cooling, is only $3.7 million.

Oregon

Oregon has expended about 80% of the total funding
received. If the additional contingency funds had not been
allocated to the state this year, the program would have been
fully expended by the beginning of January. The remaining
funding will probably be targeted for weatherization assistance
and pre-purchases of oil and bulk propane. Additionally, some
cooling assistance may be provided in the eastern part of the
state or in the metro area where more households reside in
apartments.

Rhode Island

For the most part, Rhode Island's program is currently out
of funds that were allocated for fuel bills. Last year the
program was able to stay open for most of the summer to help
out with shut-offs. It does not appear there will be funds
available for cooling or summer crisis, although $3-4 million
is needed.

South Carolina

South Carolina has approximately $779,308 remaining from
this year's combined emergency fund/regular appropriations,
compared to $259,400 last year. An estimated $3,024,995 will be
used for cooling assistance, compared to $1.3 million last
year. Although the maximum benefit was raised from $250 to $800
this year, there are still a large number of households in
arrearage. The largest utility company in the state is
averaging 37,000 arrearages a month. Given the maximum benefit
of $800, an additional $1 million is needed to provide
assistance to alleviate these arrearages.

South Dakota

South Dakota has less than 10% of the funds received this
year remaining, which is about the same as last year. No summer
cooling assistance is available, and, although the state is
getting reports of very large arrearages, there are no funds
available to help families deal with their balances or prevent
shut-offs.

Utah

Utah has set aside $500,000 for cooling and crisis
assistance this year, compared to $650,000 last year. The state
provides cooling assistance only as part of the crisis program.
It is anticipated the need in FY 2002 will exceed that
experienced this year. Funds may have to be taken out of the
10% carryover set aside for next year to supplement crisis/
cooling assistance through the summer.

Vermont

In Vermont out of $14.5 million received in FY 2001 (block
grant, contingency grants, carry forward, leveraging incentive,
and reallotment funds) only $490,000 has not been allocated
(3%). Last year at this time, out of $11.4 million, $685,000
had not been allocated (or 6%). None of the remaining funds are
targeted for cooling assistance or arrearage payments and shut-
off avoidance. Last year, $200,000 was allocated for spring,
summer, and fall emergency assistance (heat and electric
service disconnections--but not cooling assistance). Vermont
does not anticipate a similar allocation will be available this
year.

Virginia

Virginia has approximately $3 million remaining from its
combined emergency fund/regular appropriations for FY 2001,
which is the same as last year. Also, as last year, this entire
amount will be targeted for summer cooling assistance. Based on
applications received last year through the cooling assistance
program, this amount is not sufficient to meet the need.
Virginia would need an additional $2.1 million to serve the
number of applicants from last year. The state does not have a
program that specifically targets clients with arrearages and/
or cutoffs because the current appropriation does not provide
sufficient funds to initiate a new targeted type of assistance.
However, due to the tremendous increases in fuel costs during
the past winter many citizens experienced severe hardship in
making payments and are now threatened with shut-off and have
huge arrearages. In assessing the need for additional
assistance for both utilities and deliverable fuels, the state
estimates a need for an additional $5.6 million, based on the
1999-00 fuel case count plus the 2000-01 crisis case count.

Washington

Washington anticipates serving 25% of the eligible
households this year, which leaves 75% unserved. If the federal
appropriation for FY 2002 is only $1.4 billion, the state will
only be able to serve about 19% of the eligible population.

West Virginia

West Virginia estimates a current unencumbered LIHEAP
balance of $2.5 million. None of the remaining funds is
earmarked for cooling or arrearage/shut-off avoidance. However,
a supplemental payment to LIHEAP households that contain a
person age 60 or older may be used for heating arrearages or to
offset anticipated cooling costs. A minimum of $1 million is
needed for cooling assistance.
West Virginia utilizes an automated benefit issuance/
eligibility determination system called RAPIDS. Cost
allocations for workers to enter applications into the system
mount up quickly, making it necessary to keep the LIHEAP season
short. No state funds are used for LIHEAP at this time.
Additional funds are needed to help the state's most vulnerable
households.

Wisconsin

Wisconsin has depleted all LIHEAP funds available, in
contrast to last year when there was over $4 million left to
use for summer fills, arrearages, etc. in preparation for the
next heating season. There are no funds available for cooling
assistance this summer, and the state will only be able to
operate a cooling program if supplemental funds are awarded for
this purpose and if there is a heat emergency declared in the
state. Although the state intended to provide a supplemental
allocation to local agencies for crisis assistance, it has not
been able to do so because of the costs for the basic heating
assistance payments. Based on current federal funding levels
(the President's budget) the state will receive $31 million
less for the next heating season than was received through
regular and supplemental appropriations this year. Even if the
level proposed by the Senate were adopted, Wisconsin would
still receive $11 million less that was awarded this year.
Caseloads for the regular heating assistance program are up
over 30% in numbers of paid households and up 70% in the dollar
amount of heating assistance paid. The amount of crisis funds
available to local agencies has also been increased by over
200%. For the first time the state provided $14 million of
utility public benefits dollars, which was used primarily for
electric benefits.

Wyoming

Although Wyoming currently has a remaining LIHEAP balance
of about $1.2 million left, these funds will be used for
additional benefits and administrative costs. There is no
summer cooling assistance program and the crisis portion of the
regular program concluded on May 15th. Although sufficient
funds were available for this year, the need is increasing
rapidly with higher fuel costs, which will result in higher
numbers and amounts of arrearages next year.

Table 1: State Listing of Shut-Off and Arrearage Information (May 14,
2001)

Arrearage and shut-off data is currently being collected by
NEADA. As of May 14, 19 states and the District of Columbia
reported arrearages totaling almost $910 million owed by 4.3
million families. The following is a brief state-by-state
summary of those states providing arrearage and shut-off data.
For further information about this survey contact:
California: Southern California Gas has experienced a 96%
increase in delinquencies among its residential customers from
February 2000 to February 2001 increasing from 369,000
delinquent customers to 723,000 within that period. During the
same period, arrearages for Southern California Edison
increased from $51 million to $100 million, while the number of
customers in arrearage increased from 431,182 to 567,256.
Connecticut: Under the state's moratorium, Connecticut
Natural Gas reported 12,994 families as compared to 10,378 last
year; United Illuminating reported 12,000 families (of which
7,000 are delinquent and could be terminated between April 16th
and May 16th, depending on the billing cycle); and Connecticut
Light and Power reported 25,950 households. The number of
delinquents may also drop as customers make payments/
arrangements when faced with the prospect of having their
service disconnected.
District of Columbia: Washington Gas reported that 14,694
residential customers who were at least 60 days in arrears owed
approximately $6.6 million. Of that total 5,229 have received
shut-off notices and were mailed a special letter urging
immediate action to avoid shut-off.
Georgia: Approximately 200,000 families owe about $80
million in arrearages. These families could potentially lose
their gas service beginning April 1st when the moratorium is
lifted.
Indiana: The moratorium on shut-offs will expire on April
1st. Arrearages are estimated to have increased to $30.5
million from $14.4 million. Approximately 50,000 families could
be at risk of shut-off.
Iowa: The state has reported there are 180,000 families
with more than $34.5 million in arrearages, more than double
last year's amount. The state PUC has extended the moratorium
until May 1st.
Kansas: Kansas Gas Service reported that 27,000 of their
customers are in arrears, with average amounts that are two to
three times larger than normal due to the increased costs of
utilities. Last week, the Kansas PUC extended the moratorium on
natural gas and electric service disconnections through May
31st.
Kentucky: Natural gas arrearages total $30.9 million with
94,010 pending shutoffs.
Louisiana: Entergy, the state's utility serving the New
Orleans area, reported $32.9 million in arrearages, up from $14
million last year. The average amount in arrears this year is
$400 vs. $267 last year. The total number of residential
families with arrearages totals about 76,000 accounts.
Michigan: Utilities serving 5.7 million customers reported
that 1.3 million of its customers have generated arrearages
totaling almost $98 million.
Minnesota: Arrearages for electric and natural gas total
approximately $71.6 million. The average residential arrearage
increased from $168 last year to $267 during the current year.
As many as 100,000 families currently are past due on their
accounts and could be disconnected after April 15th and the
expiration of the Cold Weather Rule.
Mississippi: Entergy Mississippi residential arrearages are
projected to increase by 36% from $5.6 million to $7.6 million.
Missouri: The state's two largest natural gas companies
have had a self-imposed moratorium on shut-offs that expired
March 15th. The current arrearage amount is approximately $6.3
million and the estimated number of families to be shut-off
within 30 days, if bills are not paid, is 13,091.
New Jersey: Public Service Electric and Gas, the state's
largest utility, reported residential arrearages of $271
million, an increase of 14% over last year. Shut-off notices
have been sent to 276,715 families, an increase of 6% over the
same period last year.
Pennsylvania: Between 150,000 and 250,000 families in
arrears and are expected to begin receiving shut-off notices.
South Carolina: Arrearages have increased by 30% from last
year, totaling $13.5 million. Almost 37,000 families are facing
shut-offs.
Texas: Entergy Texas has reported an increase of 41% in
arrearages from $7.3 million to $10.3 million.
Virginia: Columbia Gas reports a $12 million arrearage this
year as opposed to $2 million last year. Dominion Virginia
Power, the largest electricity supplier, is reporting a 33%
increase in arrears over last year. Approximately 20,000
customers will receive shut-off notices once the voluntary
moratorium is lifted.
West Virginia: American Electric Power has reported that
55,000 of their 367,764 residential customers owe about $5.5
million in arrears. The average arrearage is $106. Shut-off
notices are currently being mailed.
Wisconsin: Total electric and gas arrearages increased by
almost 38%, from $71.0 million to $97.7 million. The average
amount in arrears increased by about 23%, from $206 to $167,
while the number of households in arrears increased by almost
12 percent, from 424,607 customers to 473,989 customers.

David Obey.

ADDITIONAL VIEWS OF HON. NORM DICKS

Despite the best efforts of the Chairman, Ranking Member,
and other members of the Defense Subcommittee, the defense
section of this bill is simply not up to the task of providing
for the glaring shortfalls in funding at the Department of
Defense. The Committee has made several appropriate adjustments
to the Administration's request for funding for DOD, including
providing $39.9 million for repair of natural disaster damages
at military facilities, and adding $200 million for health care
at military treatment facilities. However, the Committee was
hobbled by an Administration request that was substantially
under funded give the Department's need, and a threat by the
Administration to veto any bill which provided for the
Department's full requirements.
It is my view that despite the Administration's veto
threat, the Committee should have increased funding for DOD by
at least $3 billion in emergency funding. In February, I and
several other Democratic members of the Appropriations, Armed
Services, and other House committees introduced a Defense
Supplemental of $6.7 billion. That bill was based on the
testimony of the chiefs of each of the military services, and
contained $2 billion in funding for shortfalls in readiness
accounts not included in the Administration's request
transmitted to Congress. These shortfalls not addressed by the
Administration include $558 million for spare parts, $334.5
million in pay and Basic Allowance for Housing (BAH)
requirements, $254 million for force protection programs, $157
million for aircraft and ship depot maintenance, and $150
million for recruiting and retention, among many others.
Although the Administration's request contained about $1
billion in funding for shortfall not covered in our
supplemental, including many requests for research and
development and procurement funding, the Administration's
request is still over $1 billion short of our bill in total,
and the need for funding has only increased in the time since
the chiefs of the four military services testified before
Congress in January of 2001.
The Administration has provided no credible explanation for
its neglect of $2 billion in shortfalls in core readiness
accounts. And more recent information on FY01 shortfalls at DOD
have convinced me that each of the military services will
remain $1 billion short of their requirements even after the
bill approved by the Committee is passed unless more funding
can be added. It is the responsibility of Congress to correct
the President's defense budget and supplemental funding
requests when they are lacking, a responsibility which Congress
has kept, with bipartism support, in each of the last several
fiscal years. For exactly the same reasons as in those years,
both the Congress and the Appropriations Committee must
reevaluate the level of DOD funding in this year's supplemental
as it moves through the legislative process.

Norman Dicks.