[House Report 115-230] [From the U.S. Government Publishing Office] 115th Congress } { Report HOUSE OF REPRESENTATIVES 1st Session } { 115-230 ====================================================================== ENERGY AND WATER DEVELOPMENT APPROPRIATIONS _______ July 17, 2017.--Committed to the Whole House on the State of the Union and ordered to be printed _______ Mr. Simpson, from the Committee on Appropriations, submitted the following R E P O R T together with ADDITIONAL VIEWS [To accompany H.R. 3266] The Committee on Appropriations submits the following report in explanation of the accompanying bill making appropriations for energy and water development for the fiscal year ending September 30, 2018, and for other purposes. INDEX TO BILL AND REPORT _______________________________________________________________________ Page Number Bill Report Introduction............................................... 5 I. Department of Defense--Civil: 2 11 Corps of Engineers--Civil.......................... 2 11 Investigations............................. 2 18 Construction............................... 3 25 Mississippi River and Tributaries.......... 5 31 Operation and Maintenance.................. 5 34 Regulatory Program......................... 7 58 Formerly Utilized Sites Remedial Action Program................................ 7 59 Flood Control and Coastal Emergencies...... 7 59 Expenses................................... 7 59 Office of the Assistant Secretary of the Army (Civil Works)..................... 8 60 General Provisions................................. 9 61 II. Department of the Interior: 14 61 Central Utah Project............................... 14 61 Central Utah Project Completion Account.... 14 61 Bureau of Reclamation:............................. 14 62 Water and Related Resources................ 15 63 Central Valley Project Restoration Fund.... 16 73 California Bay-Delta Restoration........... 17 74 Policy and Administration.................. 17 74 General Provisions................................. 18 75 III. Department of Energy: 21 75 Introduction....................................... 75 Committee Recommendations.......................... 75 Energy Programs: 21 80 Energy Efficiency and Renewable Energy..... 21 80 Electricity Delivery and Energy Reliability 22 86 Nuclear Energy............................. 22 87 Fossil Energy Research and Development..... 23 88 Naval Petroleum and Oil Shale Reserves..... 23 91 Strategic Petroleum Reserve................ 24 91 Northeast Home Heating Oil Reserve......... 24 92 Energy Information Administration.......... 25 92 Non-Defense Environmental Cleanup.......... 25 92 Uranium Enrichment Decontamination and Decommissioning Fund................... 25 93 Science.................................... 26 93 Nuclear Waste Disposal..................... 26 97 Title 17 Innovative Technology Loan Guarantee Program...................... 29 97 Advanced Technology Vehicles Manufacturing Loan Program........................... 30 98 Tribal Energy Loan Guarantee Program....... 31 98 Departmental Administration................ 31 98 Office of the Inspector General............ 32 100 Atomic Energy Defense Activities: 32 100 National Nuclear Security Administration: 32 101 Weapons Activities......................... 32 101 Defense Nuclear Nonproliferation........... 33 106 Naval Reactors............................. 34 109 Federal Salaries and Expenses.............. 34 109 Environmental and Other Defense Activities: 34 110 Defense Environmental Cleanup.............. 34 110 Other Defense Activities................... 35 112 Defense Nuclear Waste Disposal............. 35 113 Power Marketing Administrations: 36 113 Bonneville Power Administration............ 36 114 Southeastern Power Administration.......... 36 114 Southwestern Power Administration.......... 37 115 Western Area Power Administration.......... 39 115 Falcon and Amistad Operating and Maintenance Fund....................... 40 115 Federal Energy Regulatory Commission............... 42 116 Committee Recommendation........................... 116 General Provisions................................. 43 150 IV. Independent Agencies: 51 151 Appalachian Regional Commission.................... 51 151 Defense Nuclear Facilities Safety Board............ 51 151 Delta Regional Authority........................... 52 152 Denali Commission.................................. 52 152 Northern Border Regional Commission................ 53 152 Southeast Crescent Regional Commission............. 53 153 Nuclear Regulatory Commission...................... 53 153 Nuclear Waste Technical Review Board............... 56 156 General Provisions................................. 56 156 V. General Provisions 58 156 House of Representatives Report Requirements............... 157 Additional Views........................................... 181 SUMMARY OF ESTIMATES AND RECOMMENDATIONS The Committee has considered budget estimates, which are contained in the Budget of the United States Government, Fiscal Year 2018. The following table summarizes appropriations for fiscal year 2017, the budget estimates, and amounts recommended in the bill for fiscal year 2018.INTRODUCTION The Energy and Water Development Appropriations bill for fiscal year 2018 totals $37,562,000,000, $209,000,000 below the amount appropriated in fiscal year 2017 and $3,240,861,000 above the budget request. Total defense funding is $20,456,000,000, $500,000,000 above the amount appropriated in fiscal year 2017 and $139,298,000 below the budget request. Total non-defense funding is $17,106,000,000, $709,000,000 below the amount appropriated in fiscal year 2017 and $3,380,159,000 above the budget request. Title I of the bill provides $6,157,764,000 for the Civil Works programs of the U.S. Army Corps of Engineers, $120,000,000 above fiscal year 2017 and $1,155,764,000 above the budget request. Total funding for activities eligible for reimbursement from the Harbor Maintenance Trust Fund is estimated at $1,340,000,000, which is an increase of $40,000,000 above fiscal year 2017 and $375,000,000 above the budget request. The bill makes use of all estimated annual revenues from the Inland Waterways Trust Fund. Title II provides $1,238,149,000 for the Department of the Interior and the Bureau of Reclamation, $78,851,000 below fiscal year 2017 and $131,773,000 above the budget request. The Committee recommends $1,229,166,000 for the Bureau of Reclamation, $77,334,000 below fiscal year 2017 and $131,773,000 above the budget request. The Committee recommends $8,983,000 for the Central Utah Project, $1,517,000 below fiscal year 2017 and the same as the budget request. Title III provides $29,888,401,000 for the Department of Energy, $857,608,000 below fiscal year 2017 and $2,017,804,000 above the budget request. Funding for the National Nuclear Security Administration (NNSA), which includes nuclear weapons activities, defense nuclear nonproliferation, naval reactors, and federal salaries and expenses, is $13,914,400,000, $976,148,000 above fiscal year 2017 and $16,600,000 below the budget request. Funding for energy programs within the Department of Energy, which includes basic science research and the applied energy programs, is $9,609,001,000, $1,674,689,000 below fiscal year 2017 and $2,098,102,000 above the budget request. The Committee recommends $5,392,000,000 for the Office of Science, $1,103,908,000 for Energy Efficiency and Renewable Energy, $969,000,000 for Nuclear Energy, and $634,600,000 for Fossil Energy. No funds are provided for the Advanced Research Projects Agency--Energy. Environmental management activities--non-defense environmental cleanup, uranium enrichment decontamination and decommissioning, and defense environmental cleanup--are funded at $6,395,400,000, $24,600,000 below fiscal year 2017 and $112,935,000 below the budget request. The net amount appropriated for the Power Marketing Administrations is provided at the requested levels. Title IV provides $357,062,000 for several Independent Agencies, $7,835,000 above fiscal year 2017 and $147,520,000 above the budget request. Net funding for the Nuclear Regulatory Commission is $161,612,000, $49,107,000 above fiscal year 2017 and $23,580,000 above the budget request. Overview of the Recommendation The Committee recommendation prioritizes the most critical inherently federal responsibilities of this bill: the national defense, the maintenance of our nation's waterways, and ensuring the resilience and security of our electricity infrastructure. Strong support is included for basic science programs, which provide the foundation for the new energy technologies that are vital to maintaining our global competitiveness and ensuring our country's long-term prosperity, but that are often too high-risk to receive the attention of the private sector. In contrast, the recommendation provides limited resources for the applied energy research and development activities with the greatest opportunity for private sector backing. The recommendation also recognizes the importance of the federal government's responsibility to dispose of nuclear waste and clean up the legacy of five decades of nuclear weapons production and government-sponsored nuclear energy research. National Defense Programs As in previous years, the Committee considers the national defense programs run by the National Nuclear Security Administration (NNSA) to be the Department of Energy's top priority. The recommendation strongly supports the Department's proposals to modernize the nuclear weapons stockpile, increase investment in the NNSA's infrastructure, prevent the proliferation of nuclear materials, and provide for the needs of the naval nuclear propulsion program. Investments in Infrastructure The water resource infrastructure funded by the recommendation is a critical component of ensuring a robust national economy and of supporting American competitiveness in international markets. The Corps is responsible for keeping our federal waterways open for business. The Corps also has been instrumental in reducing the risk of flooding for public safety, businesses, and much of this country's food-producing lands. The Bureau of Reclamation supplies reliable water to approximately ten percent of the country's population and to much of its fertile agricultural lands. Both agencies make significant contributions to national electricity production through hydropower facilities. The U.S. marine transportation industry supports $2,000,000,000,000 in commerce and creates employment for more than 13 million people. As the agency responsible for our nation's federal waterways, the Corps maintains 1,067 harbors and 25,000 miles of commercial channels serving 40 states. The maintenance of these commercial waterways is directly tied to the ability of this country to ship its manufactured and bulk products, as well as to compete with the ports of neighboring countries for the business of ships arriving from around the world. As a primary supporter of America's waterway infrastructure, the Corps is ensuring that the nation has the tools to maintain a competitive edge in the global market. This recommendation makes key changes to the budget request to ensure that the Corps has the resources to continue to support America's shipping infrastructure. The flood protection infrastructure that the Corps builds or maintains reduces the risk of flooding to people, businesses, and other public infrastructure investments. In fact, the average annual damages prevented by Corps projects over fiscal years 2007-2016 was $67,600,000,000. Between 1928 and 2016, each inflation-adjusted dollar invested in these projects prevented $8.91 in damages. The properties and investments protected by the Corps infrastructure would often be flooded without that infrastructure, destroying homes, businesses, and many valuable acres of cropland. The Bureau of Reclamation's water infrastructure is a critical component of the agricultural productivity of this country. These facilities deliver water to one of every five western farmers resulting in approximately 10 million acres of irrigated land that produces 60 percent of the nation's vegetables and 25 percent of its fruits and nuts. Additionally, these facilities deliver water to more than 31 million people for municipal, rural, and industrial uses. Without these dams and water supply facilities, American agricultural producers in the West would not be able to access reliable, safe water for their families and their businesses and many municipal and industrial users would face critical water shortages. The Corps and Reclamation are the nation's largest and second largest producers of hydropower, respectively. Combined these federal hydropower facilities generate approximately 115 billion kilowatt-hours annually. Gross revenues from the sale of this power reach nearly $6,000,000,000 annually. National Energy Policy The Department of Energy and its National Laboratory system have helped to lay the foundation for the technological advances driving the energy market today. Production breakthroughs for every energy generation source can trace their origins back to research and development supported by the Department. As the energy market continues to change, the Department's support for foundational research and development in all energy sources remains critical. The President's budget request proposes a shift away from later stage research and development activities to refocus the Department on an early stage research and development mission. The Committee is appreciative of the Department's efforts to focus on early stage research and development and begins a gradual approach to achieve this goal. The Committee provides funding in support of an all of the above energy strategy designed to take advantage and utilize all sources of American-made energy. Funding for fossil and nuclear sources, which provide 84 percent of all electricity generated in the nation, is targeted to ensure the safe and efficient use of the nation's critical baseload energy generation sources. Funding for renewable energy sources, which provide 15 percent of the nation's electricity, supports continued investments in research and development to advance technological innovations. This strategy provides the correct balance to enable full use of our nation's abundant fossil resources while laying the foundation for developing future energy sources. The success of these innovations depends on a reliable and resilient electric grid infrastructure. The nation's electric grid was built to handle a different energy reality than the one we face today. Weather events, cyberattacks, and an increasing diversity of energy sources must be addressed to guarantee the continued operation of the electric grid. The Committee provides strong support to ensure the nation's electric grid remains secure. The Committee continues its long-standing support for the investment of taxpayer funds across the spectrum of all energy technologies. A national energy policy can only be successful if it maintains stability while planning for long-term strategic goals of energy security, independence, and prosperity for the nation. The Committee makes strategic choices, recommending a balanced approach to advancing research and development in all energy technologies and supporting a robust electric grid. CONGRESSIONAL DIRECTION Program, Project, or Activity.--The term program, project, or activity shall include the most specific level of budget items identified in the Energy and Water Development and Related Agencies Appropriations Act, 2018 and the Committee report accompanying this Act. Performance Measures.--The Committee directs each of the agencies funded by this Act to comply with title 31 of the United States Code including the development of their organizational priority goals and outcomes such as performance outcome measures, output measures, efficiency measures, and customer service measures. Offsetting Collections.--The Committee directs each of the agencies funded by this Act to continue to report any funds derived by the agency from non-federal sources, including user charges and fines that are authorized by law, to be retained and used by the agency or credited as an graphic in annual budget submissions. Regional Councils.--The Committee encourages all federal agencies to consider including regional councils and councils of government as eligible entities in competitions for federal funding when local governments or non-profit agencies are eligible. Digital Accountability and Transparency Act.--The Committee supports the requirements of the Digital Accountability and Transparency Act of 2014 as identified in the budget request. Committee Oversight Initiatives The highest priority mission of any federal agency is to be an effective steward of taxpayer dollars. Any waste, fraud, or abuse of taxpayer dollars is unacceptable. The Committee uses hearings, reviews by the Government Accountability Office, the Committee on Appropriations' Surveys and Investigations staff, and its annual appropriations Act, including the accompanying report, to promote strong oversight of the agencies under its jurisdiction, with an emphasis on the U.S. Army Corps of Engineers, the Bureau of Reclamation, and the Department of Energy. The recommendation continues the Committee's responsibility to conduct in-depth oversight into all activities funded in this bill. Each agency shall designate a specific point of contact to track each report required in the bill and ensure its timely production and delivery. A summary of the major oversight efforts in the bill is provided below: ------------------------------------------------------------------------ Agency/Account Requirement ------------------------------------------------------------------------ Energy and Water.......................... Direction on performance measures Army Corps of Engineers................... Direction on projects under the larger capital program Army Corps of Engineers................... Direction on Principles and Guidelines Army Corps of Engineers................... Guidance on ratings systems for allocating additional funds Army Corps of Engineers................... Direction on 2018 work plan submission Army Corps of Engineers................... Direction on new starts Army Corps of Engineers................... Direction on work related to Asian Carp Army Corps of Engineers/Investigations.... Direction on management of the planning program Army Corps of Engineers/Investigations.... Guidance on specific studies Army Corps of Engineers/Investigations.... Guidance on allocating additional funding Army Corps of Engineers/Investigations.... Notification requirement for transfer of certain facilities Army Corps of Engineers/Investigations.... Report on SMART planning Army Corps of Engineers/Construction...... Guidance on allocating additional funding Army Corps of Engineers/Construction...... Direction on management of the Continuing Authorities Program Army Corps of Engineers/Mississippi River. Guidance on allocating additional funding Army Corps of Engineers/Mississippi River. Direction on Mississippi River Commission costs Army Corps of Engineers/Operation and Guidance on allocating Maintenance. additional funding Army Corps of Engineers/Operation and Report on section 408 Maintenance. reviews Army Corps of Engineers/FUSRAP............ Guidance on investigation and study at former Sylvania site Army Corps of Engineers/Expenses.......... Direction on alternative financing Army Corps of Engineers/General Provisions Reprogramming requirements Army Corps of Engineers/General Provisions Restriction on use of continuing contracts Army Corps of Engineers/General Provisions Restriction on requiring permits for the discharge of dredged or fill material for certain agricultural activities Army Corps of Engineers/General Provisions Authority on revising federal jurisdiction under the Clean Water Act Bureau of Reclamation/Water and Related Direction on Mni Wiconi Resources. Project Bureau of Reclamation/Water and Related Guidance on allocating Resources. additional funding Bureau of Reclamation/General Provisions.. Reprogramming requirements Department of Energy...................... Guidance on prior-year balances Department of Energy...................... Report on cost audit coverage Department of Energy...................... Guidance on ARPA-E Department of Energy...................... Report on alleviation of poverty Department of Energy...................... Direction on workplace diversity Department of Energy...................... Direction on Public Access Plan Department of Energy...................... Direction on implementing a cybersecurity plan Department of Energy...................... Direction on educational activities Department of Energy...................... Direction on commonly recycled paper Department of Energy/Energy Efficiency.... Report on zero emissions energy credit Department of Energy/Energy Efficiency.... Direction on Clean Cities program Department of Energy/Energy Efficiency.... Report on waste-to-energy research and development activities Department of Energy/Fossil............... Direction on NETL budget accounts restructuring Department of Energy/Fossil............... Direction on coal research and development Department of Energy/Fossil............... Direction on crude oil by rail Department of Energy/Fossil............... Direction on NETL sites Department of Energy/Non-Defense Cleanup.. Report on Oak Ridge activities Department of Energy/UED&D................ Report on uranium transfers Department of Energy/Science.............. Report on solar fuels research initiative strategic plan Department of Energy/Science.............. Report on exascale deployment plan Department of Energy/Nuclear/Waste Direction on Yucca Mountain Disposal. licensing process Department of Energy/Departmental Direction on renewable fuel Administration. standards Department of Energy/Weapons.............. Direction on nuclear modernization affordability Department of Energy/Weapons.............. Plan to reduce overhead costs of NNSA sites Department of Energy/Weapons.............. Report on W80-4 alternatives Department of Energy/Weapons.............. Report on milestones for ignition Department of Energy/Weapons.............. Direction on footpring reduction of Albuquerque Complex Department of Energy/Weapons.............. Report on vacating legacy plutonium facilities Department of Energy/Weapons.............. Reporting on WEPAR project Department of Energy/Nonproliferation..... Guidance on new nonproliferation projects in Russia Department of Energy/Nonproliferation..... Report on commercial nuclear fuel reprocessing Department of Energy/Nonproliferation..... Report on transfer of EM nuclear material management facilities Department of Energy/Nonproliferation..... Prohibition on use of MOX funds Department of Energy/Nonproliferation..... Guidance on consideration of MOX alternative Department of Energy/Nonproliferation..... Report on removal of plutonium from South Carolina Department of Energy/Defense Cleanup...... Establishment of new budget control points Department of Energy/Defense Cleanup...... Direction on budgeting for the Waste Treatment Plant Department of Energy/Defense Cleanup...... Report on national transuranic waste processing center Department of Energy/Defense Cleanup...... Report on Office of River Protection site office Department of Energy/Defense Cleanup...... Report on WIPP ground control metrics Department of Energy/Defense Cleanup...... Guidance on headquarters planning and budgeting systems Department of Energy/Other Defense Direction on consolidation Activities. of safety and security costs Department of Energy/Power Marketing Direction on provision of Administrations. information Department of Energy/General Provisions... Reprogramming requirements Department of Energy/General Provisions... Requirement for oversight of high hazard nuclear facilities construction Department of Energy/General Provisions... Prohibition on funds without independent cost estimates Department of Energy/General Provisions... Restriction of certain activities in the Russian Federation Department of Energy/General Provisions... Requirements for releases from Strategic Petroleum Reserve Department of Energy/General Provisions... Guidance on Strategic Petroleum Reserve activities Nuclear Regulatory Commission............. Establishment reprogramming control points Nuclear Regulatory Commission............. Guidance on reporting of salaries and expenses Nuclear Regulatory Commission............. Report on agency structure and manning Nuclear Regulatory Commission............. Report on use of risk assessment tools Nuclear Regulatory Commission............. Direction on rulemaking process and activities Nuclear Regulatory Commission............. Guidance on transition to digital systems Nuclear Regulatory Commission............. Direction on preparation for license renewal applications Nuclear Regulatory Commission............. Report on licensing goals and right-sizing commitments Independent Agencies/General Provisions... Requirement for NRC to comply with Congressional requests Independent Agencies/General Provisions... Reprogramming requirements for the NRC General Provisions........................ Prohibition on funds to influence congressional action General Provisions........................ Consolidation of transfer authorities General Provisions........................ Prohibition of funds in contravention of Executive Order 12898 General Provisions........................ Prohibition of funds for computer networks that don't block General Provisions........................ Prohibition of funds to further implement EO 13547 General Provisions........................ Prohibition of funds to remove or close federally owned or operated General Provisions........................ Prohibition of funds to close Yucca Mountain application ------------------------------------------------------------------------ TITLE I--CORPS OF ENGINEERS--CIVIL DEPARTMENT OF THE ARMY Corps of Engineers--Civil INTRODUCTION The Energy and Water Development Appropriations Act funds the Civil Works missions of the Army Corps of Engineers (Corps). This program is responsible for activities in support of coastal and inland navigation, flood and coastal storm damage reduction, environmental protection and restoration, hydropower, recreation, water supply, and disaster preparedness and response. The Corps also performs regulatory oversight of navigable waters. Approximately 22,000 civilians and almost 300 military personnel located in eight Division offices and 38 District offices work to carry out the Civil Works program. DEEP-DRAFT NAVIGATION The Committee remains mindful of the evolving infrastructure needs of the nation's ports. Meeting these needs--including deeper drafts to accommodate the move towards larger ships--will be essential if the nation is to remain competitive in international markets and to continue advancing economic development and job creation domestically. Investigations and construction of port projects, including the deepening of existing projects, are cost shared between the federal government and non-federal sponsors, often local or regional port authorities. The operation and maintenance of these projects are federal responsibilities and are funded as reimbursements from the Harbor Maintenance Trust Fund (HMTF), which is supported by an ad valorem tax on the value of imported and domestic cargo. Expenditures from the trust fund are subject to annual appropriations. The balance in the HMTF at the beginning of fiscal year 2018 is estimated to be approximately $9,000,000,000. The Water Resources Reform and Development Act (WRRDA) of 2014 included target annual appropriations levels for use of HMTF receipts and the Water Resources Development Act (WRDA) of 2016 amended those levels. The Committee remains committed to providing the maximum practicable amount of funding for HMTF- reimbursable activities consistent with annual allocations and after evaluating funding requirements for other priority activities within the Civil Works program. For fiscal year 2018, the Committee provides an estimated $1,340,000,000 for HMTF-related activities, $40,000,000 more than fiscal year 2017, $375,000,000 above the budget request, and the same as the annual target. This funding should allow the Corps to make significant progress on the backlog of dredging needs. INLAND WATERWAYS SYSTEM The nation's inland waterways system--consisting of approximately 12,000 miles of commercially navigable channels and 239 lock chambers--also is essential to supporting the national economy. Freight transported on the inland waterways system includes a significant portion of the nation's grain exports, domestic petroleum and petroleum products, and coal used in electricity generation. Much of the physical infrastructure of the system is aging, however, and in need of improvements. For example, commercial navigation locks typically have a design life of 50 years, yet nearly 60 percent of these locks in the United States are more than 50 years old, with the average age at almost 60 years old. Capital improvements to the inland waterways system generally are funded 50 percent from the General Treasury and 50 percent from the Inland Waterways Trust Fund (IWTF), while operation and maintenance costs are funded 100 percent from the General Treasury. The IWTF is supported by a tax on barge fuel. In recent years, the increasing rehabilitation and reconstruction needs and the escalating costs of those projects have far outstripped available revenues in the IWTF. Two statutory changes enacted in fiscal year 2015, however, will lead to the availability of additional revenues to stand as the required cost share for some additional work on the inland waterways system. These changes were the reduction in the portion of the costs of the Olmsted Locks and Dam project that is to be derived from the IWTF to 15 percent and the increase in the fuel tax to $0.29 per gallon from $0.20 per gallon. The Corps is directed to take the preparatory steps necessary to ensure that new construction projects can be initiated as soon as can be supported under the larger capital program (i.e., as ongoing projects approach completion). For fiscal year 2018, the Committee provides appropriations making use of all estimated annual revenues from the IWTF. The final program level will depend on project-specific allocations to be made by the Corps, but will be at least $332,500,000. The Committee also allocates $25,000,000 above the budget request for additional operation and maintenance activities on the inland waterways. PRINCIPLES AND REQUIREMENTS Concerns persist that the effort to update the Water Resources Principles and Guidelines did not proceed consistent with the language or intent of section 2031 of the Water Resources Development Act of 2007. No funds provided to the Corps of Engineers shall be used to develop or implement rules or guidance to support implementation of the final Principles and Requirements for Federal Investments in Water Resources released in March 2013 or the final Interagency Guidelines released in December 2014. The Corps shall continue to use the document dated March 10, 1983, and entitled ``Economic and Environmental Principles and Guidelines for Water and Related Land Resources Implementation Studies'' during the fiscal year period covered by the Energy and Water Development Appropriations Act for 2018. FIVE-YEAR COMPREHENSIVE PLANNING Historically, the Committee has encouraged the Administration to provide five-year investment plans for all the agencies within the Energy and Water Development jurisdiction, particularly the Corps. The five-year plan should be based on realistic assumptions of project funding needs. It is the Committee's expectation that once projects have been initiated, the Administration will request responsible annual funding levels for them through completion. The executive branch has traditionally been unwilling to project five-year horizons for projects it has not previously supported through the budget process. Comprehensive planning is important for understanding future requirements of projects that have been supported through the appropriations process, as well. While this unwillingness to have a dialogue regarding additional investment might be reasonable under circumstances where there is no likelihood of increased resources, the Congress consistently has supported additional investment in the nation's water resource infrastructure. The uncertainty caused by year-to-year federal planning leaves too many non- federal sponsors unable to make informed decisions regarding local funding. It would be beneficial for the Congress, the Administration, and project partners to have a comprehensive plan to outline requirements for all projects that have received an appropriation to date or are proposed to begin receiving funding this year. The Committee welcomes a dialogue with the new Administration to reach a mutually agreeable way to comprehensively plan for all initiated projects. FORMAT OF FUNDING PRIORITIES Traditionally, the President requested and the Congress appropriated funds for the Civil Works program on a project- level basis. Taken together, however, these funding decisions indicated programmatic priorities and policy preferences. As with non-project-based programs, the Congress at times disagreed with the priorities stated in the President's budget request and made its priorities known in appropriations bills. Final federal government priorities were established in Acts passed by both chambers of the Congress and signed by the President. Since the 112th Congress, congressional earmarks, as defined in House rule XXI, have been prohibited. That definition encompasses project-level funding not requested by the President. As a result, the Committee reviewed the historical format of appropriations for the Corps to see if there was a more transparent way to highlight programmatic priorities without abandoning congressional oversight responsibilities. The fiscal year 2012 Act included a modification to the format used in previous years, and that format is continued for fiscal year 2018. As in previous years, the Committee lists in report tables the studies, projects, and activities within each account requested by the President along with the Committee-recommended funding level. To advance its programmatic priorities, the Committee has included additional funding for certain categories of projects. Project-specific allocations within these categories will be determined by the Corps based on further direction provided in this report. ADDITIONAL FUNDING Although it represents the highest level of funding requested since fiscal year 2010, the fiscal year 2018 budget request underfunds the Civil Works program of the Corps of Engineers. The recommendation, however, includes funding in addition to the budget request to ensure continued improvements to our national economy, public safety, and environmental health that result from water resources projects. This funding is for additional work that either was not included in the budget request or was inadequately budgeted. The Corps again is directed to develop ratings systems for use in evaluating studies and projects for allocation of the additional funding provided in this title. These evaluation systems may be, but are not required to be, individualized for each account, category, or subcategory. Voluntary funding in excess of legally required cost shares for studies and projects is acceptable, but shall not be used as a criterion for allocating the additional funding provided in this bill or for the selection of new starts. Each study and project eligible for funding shall be evaluated under the applicable ratings system. A study or project may not be excluded from evaluation for being ``inconsistent with Administration policy.'' The Corps retains complete control over the methodology of these ratings systems. The executive branch retains complete discretion over project-specific allocation decisions within the additional funds provided, subject to only the direction here and under the heading ``Additional Funding'' or ``Additional Funding for Ongoing Work'' within each of the Investigations, Construction, Mississippi River and Tributaries, and Operation and Maintenance accounts. The Administration is reminded that these funds are in addition to the budget request, and Administration budget metrics shall not be a reason to disqualify a study or project from being funded. It is expected that all of the additional funding provided will be allocated to specific programs, projects, or activities. The focus of the allocation process shall favor the obligation, rather than expenditure, of funds. With the significant backlog of work in the Corps' inventory, there is no reason for funds provided above the budget request to remain unallocated. A project or study shall be eligible for additional funding within the Investigations, Construction, and Mississippi River and Tributaries accounts if: (1) it has received funding, other than through a reprogramming, in at least one of the previous three fiscal years; (2) it was previously funded and could reach a significant milestone, complete a discrete element of work, or produce significant outputs in fiscal year 2018; or (3) as appropriate, it is selected as one of the new starts allowed in accordance with this Act and the additional direction provided below. Projects with executed Advanced Project Partnership Agreements, or similar agreements, shall be eligible for additional funding provided in this bill. None of the additional funding in any account may be used for any item where funding was specifically denied or for projects in the Continuing Authorities Program. Funds shall be allocated consistent with statutory cost share requirements. Funding associated with each category may be allocated to any eligible study or project, as appropriate, within that category; funding associated with each subcategory may be allocated only to eligible studies or projects, as appropriate, within that subcategory. The list of subcategories is not meant to be exhaustive. The Committee is concerned that the fiscal year 2017 work plan allocated Operation and Maintenance funding to some activities historically funded in the Construction account. Any shift in funding between accounts should be proposed in a budget request and addressed through the appropriations process. The Committee develops funding levels for accounts and additional funding categories based on its assessment of the scope of activities that can be advanced within each account and category. Shifting activities between accounts or categories after these funding level decisions are made is a gross misuse of the flexibility inherent in the work plan process. For fiscal year 2018, the Corps shall evaluate all studies and projects only within accounts and categories consistent with previous congressional funding. Work Plan.--Not later than 60 days after the enactment of this Act, the Corps shall provide to the Committees on Appropriations of both Houses of Congress a work plan including the following information: (1) a detailed description of the ratings system(s) developed and used to evaluate studies and projects; (2) delineation of how these funds are to be allocated; (3) a summary of the work to be accomplished with each allocation, including phase of work; and (4) a list of all studies and projects that were considered eligible for funding but did not receive funding, including an explanation of whether the study or project could have used funds in fiscal year 2018 and the specific reasons each study or project was considered as being less competitive for an allocation of funds. New Starts.--The recommendation includes six new study starts and up to two new construction starts to be distributed across the three main mission areas of the Corps. Of the new study starts, one shall be for a navigation study, one shall be for a flood and storm damage reduction study, three shall be for additional navigation or flood and storm damage reduction studies, and one shall be for an environmental restoration study. The new construction starts shall be for navigation, flood and storm damage reduction, or environmental restoration projects. No funding shall be used to initiate new studies, programs, projects, or activities in the Mississippi River and Tributaries or Operation and Maintenance accounts. The Corps is directed to propose a single group of new starts as a part of the work plan. The Corps may not change or substitute the new starts selected once the work plan has been provided to the Committees on Appropriations of both Houses of Congress. Each new start shall be funded from the appropriate additional funding line item. Any project for which the new start requirements are not met by the end of fiscal year 2018 shall be treated as if the project had not been selected as a new start; such a project shall be required to compete again for new start funding in future years. As all new starts are to be chosen by the Corps, all shall be considered of equal importance, and the expectation is that future budget submissions will include appropriate funding for all new starts selected. There continues to be confusion regarding the executive branch's policies and guidelines regarding which studies and projects require new start designations. Therefore, the Corps is directed to notify the Committees on Appropriations of both Houses of Congress at least 7 days prior to the execution of an agreement for construction of any project except environmental infrastructure projects and projects under the Continuing Authorities Program. Additionally, the recommendation reiterates and clarifies previous congressional direction as follows. Neither study nor construction activities related to individual projects authorized under section 1037 of the Water Resources Reform and Development Act (WRRDA) of 2014 shall require a new start or new investment decision; these activities shall be considered ongoing work. No new start or new investment decision shall be required when moving from feasibility to preconstruction engineering and design (PED). A new start designation shall be required to initiate construction of individually-authorized projects funded within programmatic line items. No new start or new investment decision shall be required to initiate work on a separable element of a project when construction of one or more separable elements of that project was initiated previously; it shall be considered ongoing work. A new construction start shall not be required for work undertaken to correct a design deficiency on an existing federal project; it shall be considered ongoing work. In addition to the priority factors used to allocate all additional funding provided in the Investigations account, the Corps should give careful consideration to the out-year budget impacts of the studies selected and to whether there appears to be an identifiable local sponsor that will be ready and able to provide, in a timely manner, the necessary cost share for the feasibility and PED phases. The Corps is reminded that the flood and storm damage reduction mission area can include instances where non-federal sponsors are seeking assistance with flood control and unauthorized discharges from permitted wastewater treatment facilities and that the navigation mission area includes work in remote and subsistence harbor areas. In addition to the priority factors used to allocate all additional funding provided in the Construction account, the Corps also shall consider the out-year budget impacts of the selected new starts; legal requirements, including responsibilities to Tribes; and the cost sharing sponsor's ability and willingness to promptly provide the cash contribution (if any), as well as required lands, easements, rights-of-way, relocations, and disposal areas. When considering new construction starts, only those that can execute a project cost sharing agreement not later than August 31, 2018, shall be selected. To ensure that the new construction starts are affordable and will not unduly delay completion of any ongoing projects, the Secretary is required to submit to the Committees on Appropriations of both Houses of Congress a realistic out-year budget scenario prior to issuing a work allowance for a new start. It is understood that specific budget decisions are made on an annual basis and that this scenario is neither a request for nor a guarantee of future funding for any project. Nonetheless, this scenario shall include an estimate of annual funding for each new start utilizing a realistic funding scenario through completion of the project, as well as the specific impacts of that estimated funding on the ability of the Corps to make continued progress on each previously funded construction project (including impacts to the optimum timeline and funding requirements of the ongoing projects) and on the ability to consider initiating new projects in the future. The scenario shall assume a Construction account funding level at the average of the past three budget requests. ASIAN CARP The recommendation funds the request for the existing electric barriers in the Chicago Area Waterway System. The Corps is directed to analyze the most recent information regarding the presence of Asian Carp in close proximity to Lake Michigan and any other Great Lake to determine if any emergency or additional actions are warranted, including increasing the existing barriers' efficiency and efficacy. The Corps shall complete this analysis not later than 45 days after the enactment of this Act. Upon completion of this analysis, the Corps shall report to the Committees on Appropriations of both Houses of Congress on the conclusions, including whether any additional authorization is required. Additionally, the Corps is encouraged to consult with the U.S. Fish and Wildlife Service, the U.S. Coast Guard, the State of Illinois, and other members of the Asian Carp Regional Coordinating Committee to evaluate whether navigation protocols would be beneficial or effective in reducing the risk of vessels inadvertently transporting aquatic nuisance species, including Asian Carp, through the Electric Dispersal Barrier near Romeoville, Illinois, and locks and dams in the Illinois River. The Corps is expected to release the draft Great Lakes and Mississippi River Interbasin Study (GLMRIS) Brandon Road Study consistent with the urgency of its previous actions. The Corps shall adhere to a public and agency review process that is open and transparent. The Corps is directed to provide to the Committees on Appropriations of both Houses of Congress semi- annual updates on the progress and status of efforts to prevent the further spread of the carp as well as the location and density of Asian Carp populations. The Corps is further directed to work with other appropriate federal entities to develop and submit to the Committees as soon as practicable a concise report with graphics and maps detailing the geographic migration of Asian Carp up the Mississippi River from 2000 to the present. AGING WATERWAY INFRASTRUCTURE The Committee recognizes the extraordinary implications to the local, regional, and national economy, as well as national security due to aging waterway infrastructure. The Committee urges the Corps to complete feasibility studies for ongoing deep draft lock modernization or replacement projects. In these studies, the Corps is encouraged to include national and regional economic analyses, taking into account the unique movement of the commodities and the value-added in the supply chain. CONGRESSIONAL DIRECTION AND REPROGRAMMING To ensure that the expenditure of funds in fiscal year 2018 is consistent with congressional direction, to minimize the movement of funds, and to improve overall budget execution, the bill carries a legislative provision outlining the circumstances under which the Corps may reprogram funds. COMMITTEE RECOMMENDATION The Committee recommends $6,157,764,000 for the Corps, $120,000,000 above fiscal year 2017 and $1,155,764,000 above the budget request. A table summarizing the fiscal year 2017 enacted appropriation, the fiscal year 2018 budget request, and the Committee-recommended levels is provided below: (Dollars in thousands) ---------------------------------------------------------------------------------------------------------------- FY 2017 FY 2018 Account enacted request Cmte. rec. ---------------------------------------------------------------------------------------------------------------- Investigations.................................................. $121,000 $86,000 $105,000 Construction.................................................... 1,876,000 1,020,000 1,697,000 Mississippi River and tributaries............................... 362,000 253,000 301,000 Operation and maintenance....................................... 3,149,000 3,100,000 3,519,000 Regulatory program.............................................. 200,000 200,000 200,000 FUSRAP.......................................................... 112,000 118,000 118,000 Flood control and coastal emergencies........................... 32,000 35,000 32,000 Expenses........................................................ 181,000 185,000 181,000 Office of the Assistant Secretary of the Army for Civil Works... 4,764 5,000 4,764 ----------------------------------------------- Total, Corps of Engineers--Civil............................ 6,037,764 5,002,000 6,157,764 ---------------------------------------------------------------------------------------------------------------- INVESTIGATIONS Appropriation, 2017................................... $121,000,000 Budget estimate, 2018................................. 86,000,000 Recommended, 2018..................................... 105,000,000 Comparison: Appropriation, 2017............................... -16,000,000 Budget estimate, 2018............................. +19,000,000 This appropriation funds studies to determine the need for, the engineering and economic feasibility of, and the environmental and social suitability of solutions to water and related land resource problems; preconstruction engineering and design; data collection; interagency coordination; and research. The past several budget requests have proposed significant reductions in funding within the Investigations account, with particularly steep reductions in the amount of work to be done on individual feasibility studies and preconstruction engineering and design projects. The Committee is concerned that the Corps has not adequately planned for any changes that may be necessary as a result. The Corps is directed to develop a comprehensive plan for managing an efficient planning program designed to maintain core planning competencies. The Corps shall be prepared to brief the Committees on Appropriations of both Houses of Congress not later than 180 days after the enactment of this Act on the final plan. The budget request for this account and the approved Committee allowance are shown on the following table:
Mid-Chesapeake Bay Island Project (James and Barren Islands), Maryland.--The Committee understands that the Corps must complete and approve its Baltimore Harbor and Channels Dredged Material Management Plan Update prior to budgeting for the Mid-Chesapeake Bay Island Project (James and Barren Islands). The Corps is encouraged to complete the Plan Update expeditiously. Passaic River Basin Mainstem, New Jersey.--The Committee is aware that flooding has long been a problem in the Passaic River Basin. The Committee encourages the Corps to continue to work in coordination with the non-federal sponsor on plans to reduce flooding in the basin, including the reevaluation of the Passaic River Basin Mainstem project. The Corps is directed to brief the Committee not later than 30 days after the enactment of this Act on the current status of this project. Peckman River, New Jersey.--The Committee is aware of repeated delays with the Peckman River Feasibility Study. The Corps is directed to provide to the Committee quarterly briefings on the current schedule to bring this study to completion, with the first briefing to occur not later than 30 days after the enactment of this Act. Chacon Creek, Texas.--The Corps has multiple authorities to provide technical assistance to non-federal entities. The Committee encourages the Corps to review these authorities to identify opportunities to help advance the Chacon Creek, Texas, study, for which the Corps executed a feasibility cost sharing agreement in 2004. Additional Funding.--The Corps is expected to allocate the additional funding provided in this account primarily to specific feasibility and PED phases, rather than to Remaining Items line items as had been the case in previous work plans. The activities funded under Remaining Items address core agency competencies, which means the budget request should reflect sufficient funding. When allocating the additional funding provided in this account, the Corps shall consider giving priority to completing or accelerating ongoing studies or to initiating new studies that will enhance the nation's economic development, job growth, and international competitiveness; are for projects located in areas that have suffered recent natural disasters; are for projects that protect life and property; or are for projects to address legal requirements. The Corps shall use these funds for additional work in both the feasibility and PED phases. The recommendation includes sufficient additional funding to undertake a significant amount of feasibility and PED work. The Administration is reminded that a project study is not complete until the PED phase is complete. Research and Development.--Within the funding provided, the Corps is encouraged to advance work to evaluate conservation methods to restore riverine ecosystems and to expand environmental monitoring and modeling. Research and Development, Partnerships.--The Corps is an instrumental partner in controlling aquatic nuisance species in our nation's waterways, including the Columbia River Basin with twelve listed salmon and steelhead species and more than $3,000,000,000 of goods transported for delivery around the world. The Committee recognizes the economic and environmental benefits of the Columbia River Basin and urges the Corps to utilize local and regional research partners, as appropriate, to address this serious issue. Disposition of Completed Projects.--The Corps shall notify the Committees on Appropriations of both Houses of Congress not less than 7 days prior to execution of a transfer of any Corps facilities that closed as a result of Public Law 113-121. Water Resources Priorities Study.--No funding shall be used for this study. Impacts on Oyster Reefs.--The Committee supports Corps efforts, when conducting or reviewing environmental assessments or environmental impact statements for navigation or coastal restoration projects in areas where oyster reefs exist, to consider water quality and salinity impacts on those reefs and, when appropriate, to mitigate any negative impacts. Levee Improvements.--Where Corps-owned levees are hydraulically tied to community-owned levees, particularly where FEMA levee accreditation is a concern, the Corps is encouraged to cooperate with non-federal sponsors on ways to implement necessary improvements to the federal project. Flood Control and Wastewater Treatment Facilities.--In fiscal year 2017, the Corps was directed to provide a briefing regarding activities to address concerns about flooding and wastewater treatment facilities. The Committee may have additional direction after that briefing occurs. SMART Planning.--The Committee has heard concerns that the Corps is not adequately adhering to its three-year SMART planning criteria. These criteria were established to ensure the Corps was completing feasibility studies in a timely manner. Not later than 120 days after the enactment of this Act, the Corps shall provide to the Committees on Appropriations of both Houses of Congress a report outlining the status of all studies subject to the three-year SMART planning criteria. The report shall include, for any studies the Corps does not expect to complete within three years, a plan for completing the study or an explanation of why the study should not be considered under the three-year SMART planning criteria, as well as an accounting of non-federal funds expended to date. Value of Agricultural Land.--The Committee has heard concerns that the Corps is not accurately estimating the total cost of potential damages when calculating a project's benefit- cost ratio. While health and safety are vital to these calculations, the Corps has statutory authority to include other economic factors. Some non-federal sponsors believe the Corps has undervalued agricultural land by failing to account for the value of future crops that cannot be harvested and environmental mitigation practices that prevent food safety issues following contamination by floodwaters, particularly with respect to high value fruits and vegetables that are often sold directly to consumers or to organic production, which relies on producers meeting various environmental standards. CONSTRUCTION Appropriation, 2017................................... $1,876,000,000 Budget estimate, 2018................................. 1,020,000,000 Recommended, 2018..................................... 1,697,000,000 Comparison: Appropriation, 2017............................... -179,000,000 Budget estimate, 2018............................. +677,000,000 This appropriation funds construction, major rehabilitation, and related activities for water resource projects whose principal purpose is to provide commercial navigation, flood and storm damage reduction, or aquatic ecosystem restoration benefits to the nation. Portions of this account are funded from the Harbor Maintenance Trust Fund and the Inland Waterways Trust Fund. The budget request for this account and the approved Committee allowance are shown on the following table:
Success Dam, California.--In fiscal years 2016 and 2017, the Committee raised the importance of the Corps moving expeditiously on this project to increase the reservoir capacity and complete the necessary safety reviews of the dam. Final resolution of the safety status of the dam is required in order for the reservoir to be enlarged. The Committee is aware that the Senior Oversight Group review of the dam safety analysis is scheduled for March 2018. The Committee strongly urges the Corps to complete the safety assessment of the dam by this time as detailed in House Report 114-532 and continue to expeditiously move ahead with the enlargement project, as detailed in House Report 114-91. Chesapeake Bay Oyster Recovery, Maryland and Virginia.--The Committee urges the Corps to consider species selection for disease resistance and survivability as part of oyster recovery in the Chesapeake Bay and to support development of substrate as a substitute for oyster shell, including competitively awarded contracts for research and development, as appropriate. New Jersey and New York Harbor Deepening Project.--The Committee is encouraged by the work of the Corps and its local partners to bring the construction of the New Jersey and New York Harbor Deepening Project to completion. This project of national significance is an example of how the Corps and its partners can work together to enhance our national economy. Cano Martin Pena, Puerto Rico.--The Committee notes the progress achieved in recent years to advance the Cano Martin Pena environmental restoration project in San Juan, Puerto Rico. A recent report indicated that this project can provide a significant return on investment in terms of improving the economy, protecting public health, and restoring the natural environment in Puerto Rico. The Corps is encouraged to include appropriate funding in future budget requests. Additional Funding.--The recommendation includes additional funds for projects and activities to enhance the nation's economic growth and international competitiveness. Of the additional funds provided in this account, the Corps shall allocate not less than $12,450,000 to projects with riverfront development components. Of the additional funding provided in this account for flood and storm damage reduction and flood control, the Corps shall allocate not less than $18,000,000 to additional nonstructural flood control projects. Of the additional funds provided in this account for flood and storm damage reduction, navigation, and other authorized project purposes, the Corps shall allocate not less than $10,000,000 to authorized reimbursements for projects with executed project cooperation agreements and that have completed construction or where non-federal sponsors intend to use the funds for additional water resources development activities. Of the additional funding provided in this account for flood and storm damage reduction and flood control, the Corps shall allocate not less than $13,900,000 to continue construction of projects that principally include improvements to rainfall drainage systems that address flood damages. The Corps is reminded that dam safety projects authorized under section 5003 of the Water Resources Development Act of 2007 are eligible to compete for the additional funding provided in this account. When allocating the additional funding provided in this account, the Corps is encouraged to evaluate authorized reimbursements in the same manner as if the projects were being evaluated for new or ongoing construction and shall consider giving priority to the following: 1. benefits of the funded work to the national economy; 2. extent to which the work will enhance national, regional, or local economic development; 3. number of jobs created directly by the funded activity; 4. ability to obligate the funds allocated within the fiscal year, including consideration of the ability of the non-federal sponsor to provide any required cost share; 5. ability to complete the project, separable element, or project phase with the funds allocated; 6. for flood and storm damage reduction projects (including authorized nonstructural measures and periodic beach renourishments), a. population, economic activity, or public infrastructure at risk, as appropriate; and b. the severity of risk of flooding or the frequency with which an area has experienced flooding; 7. for shore protection projects, projects in areas that have suffered severe beach erosion requiring additional sand placement outside of the normal beach renourishment cycle or in which the normal beach renourishment cycle has been delayed; 8. for navigation projects, the number of jobs or level of economic activity to be supported by completion of the project, separable element, or project phase; 9. for projects cost shared with the Inland Waterways Trust Fund (IWTF), the economic impact on the local, regional, and national economy if the project is not funded, as well as discrete elements of work that can be completed within the funding provided in this line item; 10. for other authorized project purposes and environmental restoration or compliance projects, to include the beneficial use of dredged material; and 11. for environmental infrastructure, projects with the greater economic impact, projects in rural communities, projects in communities with significant shoreline and instances of runoff, projects in or that benefit counties or parishes with high poverty rates, and projects in financially distressed municipalities. The recommendation provides funds making use of all estimated annual revenues in the IWTF. The Corps shall allocate all funds provided in the IWTF Revenues line item along with the statutory cost share from funds provided in the Navigation line item prior to allocating the remainder of funds in the Navigation line item. Aquatic Plant Control Program.--Funding is provided for watercraft inspection stations, as authorized by section 1039 of the Water Resources Reform and Development Act of 2014, and related monitoring. Continuing Authorities Program (CAP).--The Committee continues to support all sections of the Continuing Authorities Program. Funding is provided for eight CAP sections at a total of $27,000,000, an increase of $18,000,000 above the budget request, which proposed funding for only four sections. This program provides a useful tool for the Corps to undertake small localized projects without the lengthy study and authorization process typical of larger Corps projects. Within the Continuing Authorities Program and to the extent authorized by section 1150 of the WIIN Act, the Corps is encouraged to consider projects in regions comprised of cities whose historic flooding has been caused predominantly by winter snowmelt and ice floes. The management of the Continuing Authorities Program should continue consistent with direction provided in previous fiscal years. Energy Ports.--The Committee recognizes that increases in domestic energy production and the repeal of the oil export ban have resulted in increased maritime transport of energy commodities. The Corps is encouraged to consider these developments and national energy priorities in supporting authorized projects at energy transfer ports. MISSISSIPPI RIVER AND TRIBUTARIES Appropriation, 2017................................... $362,000,000 Budget estimate, 2018................................. 253,000,000 Recommended, 2018..................................... 301,000,000 Comparison: Appropriation, 2017............................... -61,000,000 Budget estimate, 2018............................. +48,000,000 This appropriation funds planning, construction, and operation and maintenance activities associated with projects to reduce flood damage in the lower Mississippi River alluvial valley below Cape Girardeau, Missouri. The budget request for this account and the approved Committee allowance are shown on the following table:
Lower Mississippi River Main Stem.--The budget request proposes to consolidate several activities across multiple states into one line item. The Committee does not support this change and instead continues to fund these activities as separate line items. Additional Funding for Ongoing Work.--When allocating the additional funding provided in this account, the Corps shall consider giving priority to completing or accelerating ongoing work that will enhance the nation's economic development, job growth, and international competitiveness, or are for studies or projects located in areas that have suffered recent natural disasters. While this funding is shown under remaining items, the Corps shall use these funds in investigations, construction, and operation and maintenance, as applicable. Mississippi River Commission.--No funding is provided for this new line item. The Corps is directed to continue funding the costs of the commission from within the funds provided for activities within the Mississippi River and Tributaries project. OPERATION AND MAINTENANCE Appropriation, 2017................................... $3,149,000,000 Budget estimate, 2018................................. 3,100,000,000 Recommended, 2018..................................... 3,519,000,000 Comparison: Appropriation, 2017............................... +370,000,000 Budget estimate, 2018............................. +419,000,000 This appropriation funds operation, maintenance, and related activities at water resource projects the Corps operates and maintains. Work to be accomplished consists of dredging, repair, and operation of structures and other facilities as authorized in various River and Harbor, Flood Control, and Water Resources Development Acts. Related activities include aquatic plant control, monitoring of completed projects, removal of sunken vessels, and the collection of domestic, waterborne commerce statistics. Portions of this account are financed through the Harbor Maintenance Trust Fund. The budget request for this account and the approved Committee allowance are shown on the following table:
Los Angeles County Drainage Area, California.--The Committee directs the Corps to evaluate methods where the Los Angeles County Flood Control District might assume a greater role in the operation and maintenance of Corps infrastructure. The Committee also directs the Corps to report if an increased role by the District can more effectively utilize budgeted funds to reduce flood risk and increase stormwater capture, which would provide a more sustainable local source of water. Santa Ana River, California.--The Committee is aware that the planned residential and commercial development project in Rialto, California, may involve modification of a portion of the Lytle and Cajon Creeks channel improvement project. The Corps is directed to conduct any necessary reviews in an efficient manner, including conducting concurrent, rather than consecutive, reviews to the greatest extent possible. Waco Lake, Texas.--The Committee has heard concerns that repairs are needed to a local public road due to slope instability issues at the Corps project. The Corps is encouraged to work with local officials to determine whether issues at the Corps project are the cause of damages to the public road and what authorities and funding sources may be available to assist the local community in repairing the road. Additional Funding for Ongoing Work.--When allocating the additional funding provided in this account, the Corps shall consider giving priority to the following: 1. ability to complete ongoing work maintaining authorized depths and widths of harbors and shipping channels, including where contaminated sediments are present; 2. ability to address critical maintenance backlog; 3. presence of the U.S. Coast Guard; 4. extent to which the work will enhance national, regional, or local economic development, including domestic manufacturing capacity; 5. extent to which the work will promote job growth or international competitiveness; 6. number of jobs created directly by the funded activity; 7. ability to obligate the funds allocated within the fiscal year; 8. ability to complete the project, separable element, project phase, or useful increment of work within the funds allocated; 9. the risk of imminent failure or closure of the facility; and 10. for harbor maintenance activities, a. total tonnage handled; b. total exports; c. total imports; d. dollar value of cargo handled; e. energy infrastructure and national security needs served; f. designation as strategic seaports; g. lack of alternative means of freight movement; and h. savings over alternative means of freight movement. Additional funding provided for donor ports and energy transfer ports shall be allocated in accordance with 33 U.S.C. 2238c. The Corps is encouraged to include funding for this program in future budget requests. Monitoring of Completed Navigation Projects.--Funding in addition to the budget request is included to support the structural health monitoring program to facilitate research to maximize operations, enhance efficiency, and protect asset life through catastrophic failure mitigation. The Corps is encouraged to also consider the need for additional work on the evaluation of grouted trunnion rods and the validation of technologies such as protective coatings. Review of Non-Federal Alterations of Civil Works Projects (Section 408).--The Committee has heard concerns about the Corps' implementation of reviews under section 408 (33 U.S.C. 408), particularly with respect to operation and maintenance of levee systems. The Corps shall be prepared to brief the Committees on Appropriations of both Houses of Congress not later than 90 days after the enactment of this Act on execution of this line item. The briefing shall include an explanation of the section 408 authority, including how it compares or conflicts with other relevant authorities; the scope of projects subject to section 408 reviews; the process used to establish the current process; any efforts or mechanisms for adjusting the review to the degree of modifications sought; and a funding history and funding projections, as well as a justification for the fiscal year 2018 budget request. Water Operations Technical Support (WOTS).--Funding in addition to the budget request is included to continue research into atmospheric rivers first funded in fiscal year 2015. Emerging Harbor Projects.--The recommendation includes funding for individual projects defined as emerging harbor projects (in section 210(f)(2) of the Water Resources Development Act (WRDA) of 1986) that exceeds the funding levels envisioned in section 210(c)(3) and 210(d)(1)(B)(ii) of WRDA 1986. Great Lakes Navigation System.--The recommendation includes funding for individual projects within this System that exceeds the funding level envisioned in section 210(d)(1)(B)(ii) of WRDA 1986. Hydrilla.--The Committee recognizes that the uncontrolled growth of hydrilla at Corps water resource projects in the United States continues to pose a variety of environmental, health, safety, and economic problems. The Corps is encouraged to develop a regional hydrilla control strategy for the South Atlantic Division. Shoreline Management Policy.--The Committee is aware of concerns regarding the new shoreline management policy for Corps reservoirs within the South Atlantic Division. The Corps is encouraged to continue working with affected local communities and stakeholders to address these concerns, including the use of non-potable water from reservoirs. Hydropower.--The Committee recognizes hydropower is an important resource for the energy requirements of our states and local communities. In some areas, such as the Summersville Dam in West Virginia, the Corps works with non-federal partners to provide reliable and affordable energy for the surrounding community. The Committee encourages the Corps to review options for expanded non-federal hydropower at appropriate sites throughout the nation. The Committee anticipates that this would include evaluations of seasonal pool levels and an assessment of the impact of expanding hydropower on safety and operations for the region. Beneficial Use of Dredged Material.--The Corps is encouraged to promptly issue implementation guidance for the pilot program authorized in section 1122 of the WIIN Act. REGULATORY PROGRAM Appropriation, 2017................................... $200,000,000 Budget estimate, 2018................................. 200,000,000 Recommended, 2018..................................... 200,000,000 Comparison: Appropriation, 2017............................... - - - Budget estimate, 2018............................. - - - This appropriation provides funds to administer laws pertaining to the regulation of activities affecting U.S. waters, including wetlands, in accordance with the Rivers and Harbors Appropriation Act of 1899, the Clean Water Act, and the Marine Protection, Research, and Sanctuaries Act of 1972. Appropriated funds are used to review and process permit applications, ensure compliance on permitted sites, protect important aquatic resources, and support watershed planning efforts in sensitive environmental areas in cooperation with states and local communities. The Committee encourages the Corps to adhere to established regulatory policies and guidance with respect to permits issued under section 404 of the Clean Water Act and to refrain from imposing additional requirements on permit applicants. Public Safety Projects.--The Committee continues to hear that public safety infrastructure projects have been delayed due to excessive and repeated reviews. Many communities depend on these projects to protect their residents from natural disasters. Considering the risk to life and other damages that these disasters inflict upon communities, it is in the public interest to have local governments mitigate for this harm. Therefore, the Committee encourages the Corps to give the public safety aspects of a project sufficient and appropriate consideration when reviewing permit applications. Shellfish Aquaculture Activities.--The Committee recognizes the significant effort undertaken by the Seattle District and the Northwest Division to re-verify 861 pending project applications submitted by shellfish growers in Washington state under the 2012 Nationwide Permit (NWP) 48 before this permit expired in March 2017. Recognizing that these permits will remain valid for only one calendar year, the Committee directs the Seattle District, the Northwest Division, and Army Corps Headquarters to implement a streamlined and efficient process to re-issue these permits under the 2017 NWP 48. Programmatic Consultations.--The Committee is concerned that Endangered Species Act consultation times are causing permit reviews to be delayed. In order to reduce permit delays, the Seattle District shall implement programmatic consultations, also known as Standard Local Operating Procedures for Endangered Species (SLOPES), to the maximum extent possible. FORMERLY UTILIZED SITES REMEDIAL ACTION PROGRAM Appropriation, 2017................................... $112,000,000 Budget estimate, 2018................................. 118,000,000 Recommended, 2018..................................... 118,000,000 Comparison: Appropriation, 2017............................... +6,000,000 Budget estimate, 2018............................. - - - This appropriation funds the cleanup of certain low-level radioactive materials and mixed wastes located at sites contaminated as a result of the nation's early efforts to develop atomic weapons. The Congress transferred the Formerly Utilized Sites Remedial Action Program (FUSRAP) from the Department of Energy to the Corps in fiscal year 1998. In appropriating FUSRAP funds to the Corps, the Committee intended to transfer only the responsibility for administration and execution of cleanup activities at FUSRAP sites where the Department had not completed cleanup. The Committee did not transfer to the Corps ownership of and accountability for real property interests, which remain with the Department. The Committee expects the Department to continue to provide its institutional knowledge and expertise to ensure the success of this program and to serve the nation and the affected communities. The Committee continues to support the prioritization of sites, especially those that are nearing completion. Within the funds provided in accordance with the budget request, the Corps is directed to complete the Remedial Investigation/Feasibility Study of the former Sylvania nuclear fuel site at Hicksville, New York, and, as appropriate, to proceed expeditiously to a Record of Decision and initiation of any necessary remediation in accordance with the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). FLOOD CONTROL AND COASTAL EMERGENCIES Appropriation, 2017................................... $32,000,000 Budget estimate, 2018................................. 35,000,000 Recommended, 2018..................................... 32,000,000 Comparison: Appropriation, 2017............................... - - - Budget estimate, 2018............................. -3,000,000 This appropriation funds planning, training, and other measures that ensure the readiness of the Corps to respond to floods, hurricanes, and other natural disasters, and to support emergency operations in response to such natural disasters, including advance measures, flood fighting, emergency operations, the provision of potable water on an emergency basis, and the repair of certain flood and storm damage reduction projects. EXPENSES Appropriation, 2017................................... $181,000,000 Budget estimate, 2018................................. 185,000,000 Recommended, 2018..................................... 181,000,000 Comparison: Appropriation, 2017............................... - - - Budget estimate, 2018............................. -4,000,000 This appropriation funds the executive direction and management of the Office of the Chief of Engineers, the Division Offices, and certain research and statistical functions of the Corps. Alternative financing.--The Committee remains supportive of public-private partnerships (P3) and other alternative financing mechanisms. These arrangements have the potential to be project delivery tools to help sustain the performance of existing infrastructure and construct new infrastructure more quickly. In fiscal year 2016, the Corps was directed to develop a policy on how proposals for public-private partnerships will be considered by the Corps and how these partnerships will be incorporated into the budget policy. A policy will allow interested non-federal sponsors equal opportunity to develop proposals for the Corps to review under established guidelines. To date, the Corps has not developed a policy. Therefore, due to the concerns in previous fiscal years and until such time as a comprehensive policy is established and provided to the Committees on Appropriations of both Houses of Congress, the Corps shall discontinue all work on project-specific public- private partnerships beyond the P3 project selected as a new start in fiscal year 2016. The Committee reminds the Corps of the Committee's long- standing concerns that federal funding decisions not be biased by non-federal decisions to construct projects in advance of federal funding or to provide funding in excess of legally required cost shares. Unfortunately, the fiscal year 2017 work plan rating system stated that increased contributions from non-federal sponsors was one of the criteria used to determine the new construction starts. The Committee has included language under the heading ``Additional Funding'' in the front matter of this title prohibiting the Corps from using such a criterion in fiscal year 2018. The Corps is directed to consider and address such equity concerns in any policy on alternative financing mechanisms being developed. Surplus Water.--The Committee urges the Corps to consider adoption of the alternative definition of ``surplus water'' excluding ``natural flows'' from stored water in the Missouri River mainstem reservoirs in its proposed rule entitled ``Use of U.S. Army Corps of Engineers Reservoir Projects for Domestic, Municipal & Industrial Water Supply'' (82 F.R. 9555). OFFICE OF THE ASSISTANT SECRETARY OF THE ARMY FOR CIVIL WORKS Appropriation, 2017................................... $4,764,000 Budget estimate, 2018................................. 5,000,000 Recommended, 2018..................................... 4,764,000 Comparison: Appropriation, 2017............................... - - - Budget estimate, 2018............................. -236,000 The Assistant Secretary of the Army for Civil Works oversees the Civil Works budget and policy, whereas the Corps' executive direction and management of the Civil Works program are funded from the Expenses account. The recommendation includes legislative language restricting the availability of 75 percent of the funding provided in this account until such time as at least 95 percent of the additional funding provided in each account has been allocated to specific programs, projects, or activities. This restriction shall not affect the roles and responsibilities established in previous fiscal years of the Office of the Assistant Secretary of the Army for Civil Works, the Corps headquarters, the Corps field operating agencies, or any other executive branch agency. The Committee counts on a timely and accessible executive branch in the course of fulfilling its constitutional role in the appropriations process. The requesting and receiving of basic, factual information, such as budget justification materials, is vital in order to maintain a transparent and open governing process. The Committee recognizes that some discussions internal to the executive branch are pre-decisional in nature and, therefore, not subject to disclosure. However, the access to facts, figures, and statistics that inform these decisions are not subject to this same sensitivity and are critical to the budget process. The Administration needs to ensure timely and complete responses to these inquiries. GENERAL PROVISIONS--CORPS OF ENGINEERS--CIVIL (INCLUDING TRANSFER OF FUNDS) The bill continues a provision that prohibits the obligation or expenditure of funds through a reprogramming of funds in this title except in certain circumstances. The bill continues a provision prohibiting the use of funds in this Act to carry out any contract that commits funds beyond the amounts appropriated for that program, project, or activity. The bill continues a provision authorizing the transfer of funds to the Fish and Wildlife Service to mitigate for fisheries lost due to Corps of Engineers projects. The bill includes a provision regarding certain dredged material disposal activities. The bill includes a provision regarding acquisitions. The bill includes a provision regarding reallocations at a project. The bill includes a provision prohibiting the use of funds to require permits for the discharge of dredged or fill material for certain agriculture activities. The bill includes a provision regarding a rule under the Clean Water Act. The bill contains a provision allowing the possession of firearms at water resources development projects under certain circumstances. TITLE II--DEPARTMENT OF THE INTERIOR Central Utah Project CENTRAL UTAH PROJECT COMPLETION ACCOUNT Appropriation, 2017................................... $10,500,000 Budget estimate, 2018................................. 8,983,000 Recommended, 2018..................................... 8,983,000 Comparison: Appropriation, 2017............................... -1,517,000 Budget estimate, 2018............................. - - - The Central Utah Project Completion Act (CUPCA) (titles II- VI of P.L. 102-575) provides for the completion of the Central Utah Project by the Central Utah Water Conservancy District. The Act also authorizes the appropriation of funds for fish, wildlife, and recreation mitigation and conservation; establishes an account in the Treasury for the deposit of these funds and of other contributions for mitigation and conservation activities; and establishes a Utah Reclamation Mitigation and Conservation Commission to administer funds in that account. The Act further assigns responsibilities for carrying out the Act to the Secretary of the Interior and prohibits delegation of those responsibilities to the Bureau of Reclamation. The Committee recommendation includes a total of $8,983,000 for the Central Utah Project Completion Account, which includes $6,635,000 for Central Utah Project construction, $898,000 for transfer to the Utah Reclamation Mitigation and Conservation Account for use by the Utah Reclamation Mitigation and Conservation Commission, and $1,450,000 for necessary expenses of the Secretary of the Interior. Bureau of Reclamation INTRODUCTION The mission of the Bureau of Reclamation (Reclamation) is to manage, develop, and protect water and related resources in an environmentally and economically sound manner in the interest of the American public. Since its establishment by the Reclamation Act of 1902, the Bureau of Reclamation has developed water supply facilities that have contributed to sustained economic growth and an enhanced quality of life in the western states. Lands and communities served by Reclamation projects have been developed to meet agricultural, tribal, urban, and industrial needs. Reclamation continues to develop authorized facilities to store and convey new water supplies and is the largest supplier and manager of water in the 17 western states. Reclamation maintains 338 reservoirs with the capacity to store 245 million acre-feet of water. As Reclamation's large impoundments and appurtenant facilities reach their design life, the projected cost of operating, maintaining, and rehabilitating Reclamation infrastructure continues to grow, yet Reclamation has not budgeted funding sufficient to implement a comprehensive program to reduce its maintenance backlog. At the same time, Reclamation is increasingly relied upon to provide water supply to federally-recognized Indian Tribes through water settlements, rural communities through its Title I Rural Water Program, and municipalities through its Title XVI Water Reclamation and Reuse Program. Balancing these competing priorities will be challenging and requires active participation and leadership on the part of Reclamation and its technical staff. FISCAL YEAR 2018 BUDGET REQUEST AND COMMITTEE RECOMMENDATION The fiscal year 2018 budget request for the Bureau of Reclamation totals $1,097,393,000. The Committee recommendation totals $1,229,166,000, $77,334,000 below fiscal year 2017 and $131,773,000 above the budget request. A table summarizing the fiscal year 2017 enacted appropriation, the fiscal year 2018 budget request, and the Committee recommendation is provided below: (Dollars in thousands) ---------------------------------------------------------------------------------------------------------------- FY 2017 FY 2018 Account enacted request Cmte rec. ---------------------------------------------------------------------------------------------------------------- Water and Related Resources..................................... $1,155,894 $960,017 $1,091,790 Central Valley Project Restoration Fund......................... 55,606 41,376 41,376 California Bay-Delta Restoration................................ 36,000 37,000 37,000 Policy and Administration....................................... 59,000 59,000 59,000 ----------------------------------------------- Total, Bureau of Reclamation................................ 1,306,500 1,097,393 1,229,166 ---------------------------------------------------------------------------------------------------------------- WATER AND RELATED RESOURCES (INCLUDING TRANSFERS OF FUNDS) Appropriation, 2017............. $1,155,894,000 Budget estimate, 2018........... 960,017,000 Recommended, 2018............... 1,091,790,000 Comparison: Appropriation, 2017......... -64,104,000 Budget estimate, 2018....... +131,773,000 The Water and Related Resources account supports the development, construction, management, and restoration of water and related natural resources in the 17 western states. The account includes funds for operating and maintaining existing facilities to obtain the greatest overall levels of benefits, to protect public safety, and to conduct studies on ways to improve the use of water and related natural resources. The budget request for this account and the approved Committee allowance are shown on the following table:
Central Valley Project, San Luis Unit, California.--The Committee is aware that Reclamation and the Western Area Power Administration are evaluating the possible construction of a transmission line to directly serve the San Luis Unit from the Central Valley Project system as an alternative to receiving service under the California Independent System Operator's Tariff. The agencies are encouraged to continue to work together and with the affected Central Valley Project water contractors to ensure the most efficient and cost-effective process for implementation. Tualatin Project, Scoggins Dam, Oregon.--The Committee supports the budget request of $2,000,000 for Safety of Dams preconstruction activities at Scoggins Dam. Consistent with existing authorities, the Committee encourages Reclamation to evaluate alternatives, including new or supplementary works, to address dam safety modifications and increased conservation storage. Considering the high risk associated with Scoggins Dam, the Committee urges Reclamation to maintain an efficient schedule in fiscal year 2018. The Committee has been told that a replacement structure downstream could significantly reduce project costs for both the federal government and local stakeholders. Mni Wiconi Project, South Dakota.--Reclamation is directed to continue working with the Tribes and relevant federal agencies, such as the Department of Agriculture, the Environmental Protection Agency, the Bureau of Indian Affairs, the Indian Health Service, and the Department of Housing and Urban Development, to coordinate use of all existing authorities and funding sources to finish needed community system upgrades and connections, as well as any transfers of those systems, as quickly as possible. The Administration is encouraged to include appropriate funding for upgrades in future budget requests. Yakima River Basin Water Enhancement Project Integrated Plan, Washington.--The Committee is aware of the Integrated Plan that has been developed by the Yakima River Basin Water Enhancement Project Working Group, including the Bureau of Reclamation, to address water storage and water supply needs for agriculture, fish, and municipalities within the Yakima River Basin in Central Washington. The Committee is supportive of the Plan and encourages the Bureau to move forward on implementing authorized components of the Plan. Additional Funding for Water and Related Resources Work.-- The recommendation includes funds in addition to the budget request for Water and Related Resources studies, projects, and activities. Priority in allocating these funds should be given to advance and complete ongoing work, including preconstruction activities and where environmental compliance has been completed; improve water supply reliability; improve water deliveries; enhance national, regional, or local economic development; promote job growth; advance tribal and nontribal water settlement studies and activities; or address critical backlog maintenance and rehabilitation activities. Of the additional funding provided under the heading ``Water Conservation and Delivery'', $67,000,000 shall be for water storage projects as authorized in section 4007 of Public Law 114-322. Not later than 45 days after the enactment of this Act, Reclamation shall provide to the Committees on Appropriations of both Houses of Congress a report delineating how the additional funds provided are to be distributed, in which phase the work is to be accomplished, and an explanation of the criteria and rankings used to justify each allocation. The fiscal year 2015-2017 Acts included additional funding for ``Western Drought Response''. This broad category provided maximum flexibility for Reclamation to address the most immediate impacts of the historic drought conditions occurring at that time. It was always intended to be a temporary measure to address unusual circumstances. With the extreme drought conditions now over, and with the new authorities provided in the WIIN Act, Reclamation can return its focus to long-term solutions to long-term water supply issues. Therefore, the Committee has focused the additional funding provided within specific categories of activities. Research and Development: Desalination and Water Purification Program.--Of the funding provided for this program, $6,000,000 shall be for desalination projects as authorized in section 4009(a) of Public Law 114-322. WaterSMART Program: Title XVI Water Reclamation & Reuse Program.--Of the funding provided for this program, $10,000,000 shall be for water recycling and reuse projects as authorized in section 4009(c) of Public Law 114-322. Aquifer Recharge.--The Committee is aware that many states are exploring new methods of recharging aquifers for increased water storage and drought mitigation. The Committee expects the Bureau of Reclamation to work closely with project beneficiaries to identify and resolve any barriers to aquifer recharge projects when appropriate. Quagga and Zebra Mussels.--The Committee is aware of the environmental and economic threat posed by invasive quagga and zebra mussels. Mussel infestations at Reclamation reservoirs can increase significantly the costs of operation of dams, power plants, pumping plants, and other water infrastructure. Reclamation and its federal, state, and local partners have undertaken many varied actions to combat the spread of these species, including support for watercraft inspection and decontamination where appropriate. In fact, the fiscal year 2018 budget request includes an increase of $4,388,000 for this purpose. The Committee encourages Reclamation to continue its efforts in cooperation with its partners to prevent the spread of quagga and zebra mussels. CENTRAL VALLEY PROJECT RESTORATION FUND Appropriation, 2017................................... $55,606,000 Budget estimate, 2018................................. 41,376,000 Recommended, 2018..................................... 41,376,000 Comparison: Appropriation, 2017............................... -14,230,000 Budget estimate, 2018............................. - - - This fund was established to carry out the provisions of the Central Valley Project Improvement Act and to provide funding for habitat restoration, improvement and acquisition, and other fish and wildlife restoration activities in the Central Valley area of California. Resources are derived from donations, revenues from voluntary water transfers and tiered water pricing, and Friant Division surcharges. The account also is financed through additional mitigation and restoration payments collected on an annual basis from project beneficiaries. Within available funds, the Committee provides funding for programs and activities according to the Administration's request. The Committee notes that the decrease for this account in the budget request and recommendation is based on a three- year rolling average of collections, in accordance with the authorizing statute. Anadromous Fish Screen Program.--The Committee is encouraged by the progress being made to screen the high priority unscreened diversions on the Sacramento River under the Bureau of Reclamation's Anadromous Fish Screen Program. The Committee encourages Reclamation to continue its focus on screening of the remaining high priority diversions from within funds made available under the Central Valley Project Restoration Fund in future budget requests. The Committee further encourages Reclamation to prioritize those fish screen and fish passage projects that will help improve the reliability of water supply deliveries in areas recently afflicted by severe drought. CALIFORNIA BAY-DELTA RESTORATION (INCLUDING TRANSFERS OF FUNDS) Appropriation, 2017................................... $36,000,000 Budget estimate, 2018................................. 37,000,000 Recommended, 2018..................................... 37,000,000 Comparison: Appropriation, 2017............................... +1,000,000 Budget estimate, 2018............................. - - - The California Bay-Delta Restoration account funds the federal share of water supply and reliability improvements, ecosystem improvements, and other activities being developed for the Sacramento-San Joaquin Delta and associated watersheds by a state and federal partnership (CALFED). Federal participation in this program was initially authorized in the California Bay-Delta Environmental and Water Security Act enacted in 1996. POLICY AND ADMINISTRATION Appropriation, 2017................................... $59,000,000 Budget estimate, 2018................................. 59,000,000 Recommended, 2018..................................... 59,000,000 Comparison: Appropriation, 2017............................... - - - Budget estimate, 2018............................. - - - The Policy and Administration account provides for the executive direction and management of all Reclamation activities, as performed by the Commissioner's office in Washington, D.C.; the Technical Service Center in Denver, Colorado; and in five regional offices. The Denver and regional offices charge individual projects or activities for direct beneficial services and related administrative and technical costs. These charges are covered under other appropriations. ADMINISTRATIVE PROVISION The bill includes an administrative provision allowing for the purchase of passenger motor vehicles. General Provisions--Department of the Interior The bill continues a provision regarding the circumstances in which the Bureau of Reclamation may reprogram funds. The bill continues a provision regarding the San Luis Unit and Kesterson Reservoir in California. The bill includes a provision regarding the San Joaquin River Restoration program. TITLE III--DEPARTMENT OF ENERGY INTRODUCTION Funds recommended in Title III provide for all Department of Energy (DOE) programs, including Energy Efficiency and Renewable Energy, Electricity Delivery and Energy Reliability, Nuclear Energy, Fossil Energy Research and Development, Naval Petroleum and Oil Shale Reserves, the Strategic Petroleum Reserve, the Northeast Home Heating Oil Reserve, the Energy Information Administration, Non-Defense Environmental Cleanup, the Uranium Enrichment Decontamination and Decommissioning Fund, Science, Nuclear Waste Disposal, Innovative Technology Loan Guarantee Program, Advanced Technology Vehicle Manufacturing Loans Program, Tribal Energy Loan Guarantee Program, Departmental Administration, Office of the Inspector General, the National Nuclear Security Administration (Weapons Activities, Defense Nuclear Nonproliferation, Naval Reactors, and Federal Salaries and Expenses), Defense Environmental Cleanup, Other Defense Activities, Defense Nuclear Waste Disposal, the Power Marketing Administrations, and the Federal Energy Regulatory Commission. Committee Recommendation The Department of Energy has requested a total budget of $27,870,597,000 in fiscal year 2018 to fund programs in its four primary mission areas: science, energy, environment, and national security. The Department of Energy budget request is $2,875,412,000 below fiscal year 2017. Advanced Research Projects Agency--Energy (ARPA--E).--The recommendation does not include funds for ARPA--E and directs that prior-year balances be used to conduct an orderly shutdown. CONGRESSIONAL DIRECTION Article I, section 9 of the United States Constitution states ``No money shall be drawn from the Treasury but in consequence of Appropriations made by law''. The Committee continues the Department's reprogramming authority in statute to ensure that the Department carries out its programs consistent with congressional direction. This reprogramming authority is established at the program, project, or activity level, whichever is the most specific level of budget items identified in this Act and the Committee report accompanying the Act. The Committee also prohibits new starts through the use of reprogramming and includes other direction to improve public oversight of the Department's actions. In addition, the recommendation continues a general provision specifying which transfer authorities may be used for accounts funded by this Act. The Committee recommendation includes a new general provision for fiscal year 2018 that establishes an absolute limit on the amount of funding that may be transferred from the Department's accounts to the DOE working capital fund in aggregate, consistent with the authorities provided by section 653 of the Department of Energy Organization Act (42 U.S.C. 7263). United States-Israel Strategic Partnership.--The United States-Israel Strategic Partnership Act of 2014 (P.L. 113-296) authorized the Department to establish an energy research and development partnership with Israel. The recommendation includes up to $4,000,000 for the Department to explore activities to bring about this collaborative effort. These funds are in addition to the $2,000,000 provided for the U.S.- Israel energy cooperative agreement. FINANCIAL REPORTING AND MANAGEMENT The Department still is not in compliance with its statutory requirement to submit to Congress, at the time that the President's budget request is submitted, a future-years energy program that covers the fiscal year of the budget submission and the four succeeding years, as directed in the fiscal year 2012 Act. In addition, the Department has an outstanding requirement to submit a plan to become fully compliant with this requirement. Working Capital Fund.--The Committee recommends $267,901,000, the same as the amount estimated by the Department of Energy for transfers to the fund in fiscal year 2017, after accounting for the shift of CyberOne activities to Departmental Administration. Alleviation of Poverty.--In its fiscal year 2016 report, the Committee directed the Department to provide a report detailing all domestic and international projects and programs within its jurisdiction that contribute to the alleviation of poverty. The Department is reminded that the Committee continues to expect the report to be provided expeditiously. Workplace Diversity.--The Committee recognizes the importance of workplace diversity in the Department of Energy's national laboratories. The Committee encourages the Department to continue to develop and broaden partnerships with minority serving institutions, including Hispanic Serving Institutions, Historically Black Colleges and Universities, Asian and Pacific Islander Serving Institutions, Predominantly Black Institutions, Tribal Colleges, and other Minority Serving Institutions. In particular, the Committee encourages programs involving undergraduate research experiences, high speed computing access, and education. The Committee notes that the fiscal year 2017 Act directed the Department to provide a detailed plan outlining efforts to recruit and retain diverse talent from the institutions mentioned above. The Committee looks forward to receiving the plan in a timely manner. Public Access Plan.--The Committee appreciates the Department issuing its Public Access Plan on July 24, 2014. The Committee urges the Department to continue efforts towards full implementation of the plan and expects an update on progress to be included in the fiscal year 2019 budget request. MANAGEMENT OF SPENT NUCLEAR FUEL AND DEFENSE WASTE The Committee fully supports the Administration's position to move forward with Yucca Mountain. The Department, together with the Nuclear Regulatory Commission (NRC), has repeatedly confirmed over the years that Yucca Mountain is a safe and secure location to permanently store the nation's spent nuclear fuel and high-level radioactive waste. However, many more steps remain before Yucca Mountain begins to accept waste. The Department's request restarts this process and brings the Department closer to fulfilling its legal obligation to take responsibility for storing the nation's nuclear waste. To restart the adjudication of the Yucca Mountain license application, the Committee provides the requested levels of $90,000,000 within Nuclear Waste Disposal, $30,000,000 within Defense Nuclear Waste Disposal, and $30,000,000 within the NRC. CYBERSECURITY The Committee is concerned that the Department has not been effectively addressing cyber threats to its enterprise. The Department developed a cyber strategy in December 2015, but failed to create an implementation plan to carry out its policy, which creates uncertainty throughout the enterprise on how to properly deal with cyber threats and safeguard the Department's assets. Not later than 180 days after the enactment of this Act, the Department shall develop an enterprise-wide cyber strategy implementation plan that includes the relevant resources, project plans, and specific performance metrics necessary to strengthen the Department's cyber posture. To enhance the accountability for management of cyber resources, the Committee recommendation consolidates funding for cybersecurity that was previously funded within the DOE working capital fund with funding for cybersecurity under the Office of the Chief Information Officer within Departmental Administration. In addition to securing its own systems, the Department and our national laboratories play an important role in assuring the resiliency of the nation's electric grid and energy infrastructure. The Committee recommendation provides targeted investments that will defend the U.S. energy sector against the evolving threat of cyber and other attacks, including $12,000,000 above the budget request in Other Defense Activities. COMMONLY RECYCLED PAPER The Department shall not expend funds for projects that knowingly use as a feedstock commonly recycled paper that is segregated from municipal solid waste or collected as part of a collection system that commingles commonly recycled paper with other solid waste at any point from the time of collection through materials recovery. EDUCATIONAL ACTIVITIES The Department is prohibited from funding fellowship and scholarship programs in fiscal year 2018 unless the programs were explicitly included in the budget justification or funded within this recommendation. Any new or ongoing programs that the Department chooses to fund in fiscal year 2019 must be detailed in the fiscal year 2019 budget justifications. This direction shall be followed in future fiscal years unless contradicted by the Committee. PAYMENTS IN LIEU OF TAXES Payments in Lieu of Taxes (PILT) is a program for discretionary financial assistance that DOE may provide that is subject to the availability of funds. While DOE may not make payments for most of the property in its possession, the Congress provided authorization for payments to specific properties acquired by the Atomic Energy Commission in the Atomic Energy Act of 1954. While that authority is broad to allow for special circumstances, the statute also provides clear direction that the Department shall be guided by the policy of not making payments in excess of the taxes that would have been payable for such property in the condition in which it was acquired, except in the case of special burdens. The formulas used by DOE to determine what payments it will make are not transparent, are not interpreted consistently across all sites, and no longer appear to be consistent with the intent of Congress as stated in the authorization language. Because of the inconsistencies, payments to individual recipients may be as little as $1,000 or as much as $6,000,000. After an investigation of the program in the 1990s, the Government Accountability Office (GAO) substantiated claims from some communities that DOE's policy was not being equitably applied and described how DOE had changed basic assumptions in how it would calculate payments on a case-by-case basis. Because the Department has deviated so substantially from its authorization basis over time, the Committee directs the Department to undertake a full overhaul of the program. After reasonable notice has been given in the Federal Register, DOE shall terminate all existing PILT agreements and enter into new PILT agreements that are consistent across all eligible sites and are in compliance with the requirement that payments are not made in excess of the taxes that would have been payable for such property in the condition in which it was originally acquired. Not later than 360 days after the enactment of this Act, the Department shall provide to the Committees on Appropriations of both Houses of Congress a report that describes the terms and payment amounts for each new PILT agreement and certifies that the terms of each agreement and calculations for payments are consistent across all eligible sites and with the statutory policy direction. The Committee further directs the Comptroller General to undertake an assessment of DOE's PILT program to examine: (1) which communities have received payments and in what amounts; (2) how payment amounts were determined by DOE; (3) the extent to which agreements differ across sites; (4) the consistency of adjustments made to payments that reduce or increase amounts paid; and (5) whether DOE has made substantive changes to its payment policy or individual agreements since the issue was last examined by the GAO. PROJECT MANAGEMENT The Department recently updated DOE Order 413.3B, its formal order on program and project management direction for the acquisition of capital assets, with the goal of improving its performance in delivering projects within the original performance baseline cost and schedule. Increasingly, DOE programs are making use of alternative project structures to award contracts for procurements and other construction activities in advance of formalizing the performance baseline for a project. The update fails to address procedures for carrying out these ``subprojects'', such as what actions should be performed at critical decision points of a ``subproject'' and how critical decision milestones for a ``subproject'' relate to requirements for the award of critical decision milestones as detailed in the DOE Order. The Department shall perform a comprehensive review of how its program offices are utilizing ``subprojects'' to execute project plans and shall update DOE Order 413.3B with appropriate procedures and guidelines that will help the Department meet its goal of removal from the GAO's High Risk List for fraud, waste, and abuse. REPROGRAMMING AND TRANSFER GUIDELINES The Committee requires the Department to inform the Committee promptly when a change in program execution and funding is required during the fiscal year. The Department's reprogramming requirements are detailed in statute. To assist the Department in this effort, the following guidance is provided for programs and activities. Definition.--A reprogramming includes the reallocation of funds from one activity to another within an appropriation. The recommendation includes a general provision providing internal reprogramming authority to the Department, as long as no program, project, or activity is increased or decreased by more than $5,000,000 or 10 percent, whichever is less, compared to the levels in the table detailing the Committee's recommendations for the Department's various accounts. For construction projects, a reprogramming constitutes the reallocation of funds from one construction project to another project or a change of $2,000,000 or 10 percent, whichever is less, in the scope of an approved project. Criteria for Reprogramming.--A reprogramming should be made only when an unforeseen situation arises, and then only if delay of the project or activity until the next fiscal year would result in a detrimental impact to an agency program or priority. A reprogramming may also be considered if the Department can show that significant cost savings can accrue by increasing funding for an activity. Mere convenience or preference should not be a factor for consideration. A reprogramming may not be employed to initiate new programs or to change program, project, or activity allocations specifically denied, limited, or increased by the Congress in the Act or report. Reporting and Approval Procedures.--In recognition of the security missions of the Department, the legislative guidelines allow the Secretary and the Administrator of the National Nuclear Security Administration jointly to waive the reprogramming restriction by certifying to the Committees on Appropriations of both Houses of Congress that it is in the nation's security interest to do so. The Department shall not deviate from the levels for activities specified in the report that are below the level of the detail table, except through the regular notification procedures of the Committee. No funds may be added to programs for which funding has been denied. Any reallocation of new or prior-year budget authority or prior- year de-obligations, or any request to implement a reorganization that includes moving previous appropriations between appropriations accounts must be submitted to the Committees on Appropriations of both Houses of Congress in writing and may not be implemented prior to approval by the Committees. Transfers.--As in fiscal year 2017, funding actions into or out of accounts funded by this Act may only be made by transfer authorities provided by this or other appropriations Acts. COMMITTEE RECOMMENDATIONS The Committee's recommendations for Department of Energy programs in fiscal year 2018 are described in the following sections. A detailed funding table is included at the end of this title. ENERGY PROGRAMS Energy Efficiency and Renewable Energy Appropriation, 2017................................... $2,090,200,000 Budget estimate, 2018................................. 636,149,000 Recommended, 2018..................................... 1,103,908,000 Comparison: Appropriation, 2017............................... -986,292,000 Budget estimate, 2018............................. +467,759,000 Energy Efficiency and Renewable Energy (EERE) programs include research, development, demonstration, and deployment activities advancing energy efficiency and renewable energy technologies, as well as federal energy assistance programs. The EERE program is divided into three portfolios: sustainable transportation, renewable energy, and energy efficiency. The sustainable transportation portfolio, which consists of the vehicles, bioenergy, and hydrogen and fuel cell programs, advances the development of plug-in electric and other alternative fuel vehicles, high-efficiency advanced combustion engines, and the replacement of oil with clean domestic transportation fuels. The renewable energy portfolio, which consists of the solar, wind, water, and geothermal programs, aims to develop innovative technologies to make renewable electricity generation cost competitive with traditional sources of energy. The energy efficiency portfolio, which consists of the advanced manufacturing, buildings, and federal energy assistance programs, seeks cost-effective solutions to reduce energy consumption in plants, buildings, and homes. The recommendation for EERE broadly reflects a gradual shift towards early stage research and development activities. However, where noted in the report, the Committee encourages a limited scope of deployment activities. The Committee encourages EERE to offer technical and other programmatic assistance to the Commonwealth of Puerto Rico to support investment in innovative technologies to effectively reduce power system emissions, efficiently treat wastewater, produce biofuels, and generate power from solid waste. The Committee recognizes the importance of the Department's work on the Energy-Water Nexus and as part of that effort, the Committee encourages the Department to enter into an interdepartmental agreement with the Department of Agriculture for research that explores how to integrate ongoing research projects at the various DOE Labs and the Agricultural Research Service to develop affordable, deployable, energy- and water- efficient food production platforms, beginning in food-insecure communities across the country. By working together, DOE and the Department of Agriculture can bring respective strengths and resources to designing the most desirable low-cost and efficient production system. The Committee is aware of the significant benefits from the further development of electrochemical conversion of CO2 to syngas for renewable fuel production. The Department is encouraged to support the further development of renewable hydrocarbon fuels from low-cost waste CO2 and low-carbon renewable energy. Zero Emissions Energy Credit.--The Department, in consultation with the Energy Information Administration, shall provide to the Committees on Appropriations of both Houses of Congress not later than 180 days after the enactment of this Act an analysis evaluating the effects of a Zero Emissions Energy Credit that replaces existing renewable energy subsidies, once they phase out, with a graduated tax credit that is apportioned based on the total emissions profile, including both airborne and solid waste byproduct emissions, of energy production sources. This analysis shall include: (1) estimated effects on utility rates paid by consumers in both rate-regulated and competitive access jurisdictions; (2) estimated impacts on the cost of zero-emissions-based purchased power agreements employed by investor-owned, cooperatively- owned, and municipal utilities; (3) estimated reductions in effective rates on the per-kilowatt-hour customer cost of qualifying sources, compared to current per-kilowatt-hour customer cost of those sources; (4) estimated impact on the need for state-implemented zero emissions credits being used to support existing baseload power sources; (5) predicted effects on federal government expenditures and revenues; and (6) estimated effects in driving the adoption and improvement of lower or zero emissions energy production technologies. Social Cost of Carbon.--The Department should not promulgate any regulations in fiscal year 2018 using the May 2013 estimates for the social cost of carbon until a new working group is convened. The working group should include the relevant agencies and affected stakeholders, re-examine the social cost of carbon using the best available science, and revise the estimates using an accurate discount rate and domestic estimate in accordance with E.O. 12866 and OMB Circular A-4. To increase transparency, the working group should solicit public comment prior to finalizing any updates. SUSTAINABLE TRANSPORTATION The Vehicle, Bioenergy, and Hydrogen and Fuel Cell Technologies programs fund activities that can reduce American exposure to future high oil prices. Research into cutting-edge technologies that will increase the fuel economy of gasoline and diesel fuel vehicles--the vast majority of today's fleet-- will allow Americans to spend less on fuel while traveling the same distance. Research into next-generation automotive and fuel cell technologies that power vehicles with domestic energy sources such as natural gas, electricity, biofuels, and hydrogen can likewise dramatically lower the impact of future high gas prices on Americans. Vehicle Technologies.--Within available funds, the recommendation includes $72,000,000 for Batteries and Electric Drive Technology, $25,000,000 for Energy Efficient Mobility Systems, and $20,000,000 to continue the SuperTruck II program to further improve the efficiency of heavy-duty class 8 long- and regional-haul vehicles. The Committee directs the Department to continue to support the Clean Cities program, including providing competitive grants to support alternative fuel, infrastructure, and vehicle deployment activities. When issuing competitive grants in support of these activities, the Department is encouraged to focus on awards that range from $500,000 to $1,000,000 each and include at least one Clean Cities coalition partner. The recommendation provides $2,500,000 for Advance Vehicle Competitions to execute the fourth year of the four-year collegiate engineering competitions, EcoCar3. The Committee encourages the Department to support continued funding for research that allows the U.S. to continue its leadership role in advancing state-of-the-art transportation infrastructure, which is vital to economic development. Within available funds, the recommendation includes up to $15,000,000 for medium- and heavy-duty on-road natural gas engine research and development, including energy efficiency improvements, emission after-treatment technologies, fuel system enhancements, and new engine development. The Committee notes that the commercial off-road vehicle sector, including industrial, mining, and farm equipment, consumes over two quads of energy per year. The Department is encouraged to consider activities that promote technologies to reduce the energy consumption of commercial off-road vehicles and provides up to $10,000,000 to support this effort. Bioenergy Technologies.--Within available funds, $27,000,000 is for feedstock supply and logistics to address issues limiting production and conversion systems at large. No funding is provided for the joint initiative with the Navy and the Department of Agriculture to develop commercial diesel and jet biofuels production capacity for defense purposes. The Committee is appreciative of research the Bioenergy Technologies Office has supported regarding wet and gaseous waste streams in waste-to-energy projects. The Committee is interested in further research and development activities to support baseload power generation using municipal solid waste- to-energy technologies. The Department is directed to provide to the Committees on Appropriations of both Houses of Congress not later than 180 days after the enactment of this Act a report on research and development activities that can improve the economic viability of municipal solid waste-to-energy facilities. Hydrogen and Fuel Cell Technologies.--Within available funds, $2,000,000 is for the EERE share of the integrated hybrid energy systems work with the Office of Nuclear Energy and $7,000,000 is to enable integrated energy systems using high and low temperature electrolyzers with the intent of advancing the H2@Scale concept. The Committee recognizes the progress of the program and expresses continued support for stationary, vehicle, motive, and portable power applications of this technology. The Department is encouraged to explore technologies that advance the storage and transportation fuel distribution, such as hydrogen compressors and carbon fiber tanks, and retail fueling systems. The Department is also encouraged to work with the Department of Transportation on supporting hydrogen fueling infrastructure. The Committee recognizes the need to support the development of alternative fueling infrastructure for U.S. consumers. Accordingly, the Department is encouraged to collaborate with the National Institute of Standards and Technology to allow accurate measurement of hydrogen at fueling stations. RENEWABLE ENERGY The Solar Energy, Wind Energy, Water Power, and Geothermal Technologies programs fund applied research, development, and demonstration to reduce the cost of renewable energy to economically competitive levels. Research into innovative technologies, such as photovoltaic and concentrating solar technologies, offshore wind, hydropower, and ground heat, can expand energy production from our domestic resources and reduce our dependence on foreign oil. Solar Energy.--The Committee encourages the Department to research high efficiency thin-film photovoltaics and processes for high-speed, low-cost processing to produce stable materials on flexible substrates that can be used in residential and commercial power and be integrated into buildings, vehicles, and food production. Research programs are encouraged to include cooperation between industry and academia and to include advanced optical characterization that enables development of strong correlations between materials, cell optical properties, and the photovoltaic power performance of the working solar cells. The Committee also encourages the Department to find ways to expand access to solar energy to residences and businesses in low-income communities. Wind Energy.--Within available funds, the recommendation provides not less than $10,000,000 on LCOE reduction, domestic manufacturing, and lowering market barriers for distributed wind systems, including small wind for rural homes and farms. The Department may provide $1,000,000 for the Wind for Schools program. The Committee continues to support wind activities with large generation potential that rely on data required by federal agencies and technology innovations that would not be developed by the private sector alone. To this end, the Committee supports an emphasis on offshore wind technologies that address the unique opportunities and issues across the nation's waterways, such as high winds, icing, and deep water. The Committee is aware of efforts by the Wind Technologies Office to work with U.S. industry to support the development of main shaft and gearbox bearing technologies. The Committee encourages the Department to collaborate with industry and to consider investment into the development of new technologies that advance critical bearing and gearbox technologies used in wind turbines. Water Power.--Within available funds, the recommendation provides $29,000,000 for marine and hydrokinetic technologies and $24,000,000 for conventional hydropower, of which $6,600,000 is for the purposes of section 242 of the Energy Policy Act of 2005. Within the funding provided for marine and hydrokinetic technologies, the Department is directed to continue competitive solicitations for a balanced portfolio of industry-led research, development, and deployment of wave and current (ocean, wave, tidal, in-river) energy conversion components and systems. The Committee expects the Department to continue to support collaborations between the previously designated Marine Renewable Energy Centers and the National Laboratories, including personnel exchanges, to support research, development, and deployment of marine energy components and systems. The Committee appreciates the Department's ongoing exploration of marine and hydrokinetic technologies research. In last year's House Report, the Committee directed the Department to report on the past allocation of funds, including demonstrating diversity in possible public and private partnerships and diversity in regional locations for siting these new methods and technologies. The Committee looks forward to the results of this report. The Committee supports the Hydropower Technologies subprogram's HydroNEXT Initiative, including efforts to address technology development challenges and critical environmental and market challenges, such as permitting new hydropower projects. ENERGY EFFICIENCY The Advanced Manufacturing, Building Technologies, Federal Energy Management, and Weatherization and Intergovernmental programs advance cost-effective solutions to reduce energy consumption through increased efficiency. Research into cutting-edge technologies that enhance manufacturing processes; develop advanced materials; and reduce energy use in buildings, homes, and factories can serve the national interest by greatly reducing our energy needs, while also giving American manufacturers an advantage to compete in the global marketplace. Advanced Manufacturing.--Within available funds, the recommendation provides not less than $4,205,000 for improvements in the steel industry and $5,000,000 for transient kinetic analysis for scaling of industrial processes and developing new catalysis programs for industrial applications. The recommendation does not include funding for the Critical Materials Energy Innovation Hub, the Energy Water Desalination Hub, or the six Clean Energy Manufacturing Innovation (CEMI) Institutes. The Committee supports the request to phase out operations and directs an orderly shutdown at the Hubs and six CEMI institutes. However, in order to ensure the most promising early stage research and development efforts of the Hubs and CEMI institutes are continued, the Committee provides up to $15,000,000 to support competitive awards for similar activities. The Committee recognizes the importance of the textile sector and believes that federal support for advanced textile research is essential to maintaining the competitiveness of the domestic textile and apparel industry. The Committee believes that advanced textile research can develop more sustainable manufacturing processes and technologies that will benefit producers, foster the reshoring of textile jobs to the United States, and reduce the global environmental impact of textile manufacturing. The Committee therefore encourages the Department to consider the need for competitively-funded advanced textile manufacturing process research. In the fiscal year 2016 report, the Committee directed the Department to analyze the impact federal investment may have in strengthening the availability and usage of lithium, including low-sodium lithium metal. As the Committee awaits the results of this study, the Department is encouraged to explore ways in which these upcoming recommendations can increase U.S. domestic supply of lithium and low-sodium lithium metal. Building Technologies.--Within available funds, the recommendation includes up to $25,000,000 for transactive controls research and development and $25,000,000 for solid state lighting. If the Secretary finds solid-state lighting technology eligible for the twenty-first century lamp prize, specified under section 655 of the Energy Independence and Security Act of 2007, $5,000,000 is provided in addition to funds recommended for lighting research and development. Building energy consumption represents at least a 40 percent component of energy consumption in the U.S. Energy efficiency is thus a critical component of infrastructure development. The Committee recognizes the importance of the Transformation in Cities initiative for local government planning and encourages the Department to continue its support of the goals of the initiative. The Committee notes that natural gas plays an important role in meeting the energy needs of U.S. homes and commercial buildings. In particular, the Committee is aware of research opportunities related to the use of natural gas in water heating, space conditioning, furnace venting, and combined heat and power systems. The Committee encourages the Department to explore research and development that can advance future natural gas systems and appliances to meet consumer demand for high efficiency and environmentally friendly products. To continue these efforts, up to $4,000,000 is for research, development, and market transformation programs on energy efficiency efforts related to the direct use of natural gas in residential applications, including gas heat pump heating and water heating, on-site combined heat and power, and natural gas appliance venting. Weatherization and Intergovernmental Programs.--The Committee recommends $278,000,000 for Weatherization and Intergovernmental Programs. CORPORATE SUPPORT The Program Direction, Strategic Programs, and Facilities and Infrastructure budgets provide the necessary resources for program and project management across all of EERE's technology programs, for the adoption of technologies to market, and for the operation and upkeep of the National Renewable Energy Laboratory. Strategic Programs.--Within available funds, $2,000,000 is to continue activities in support of the U.S.-Israel energy cooperative agreement. The Department is encouraged to work with two-year, public community and technical colleges on job training programs that lead to an industry-recognized credential in the energy workforce. Electricity Delivery and Energy Reliability Appropriation, 2017................................... $230,000,000 Budget estimate, 2018................................. 120,000,000 Recommended, 2018..................................... 218,500,000 Comparison: Appropriation, 2017............................... -11,500,000 Budget estimate, 2018............................. +98,500,000 The Electricity Delivery and Energy Reliability program advances technologies and provides operational support to increase the efficiency, resilience, and security of the nation's electricity delivery system. The power grid employs aging technologies at a time when power demands, the deployment of new intermittent technologies, and rising security threats are imposing new stresses on the system. The Office of Electricity Delivery and Energy Reliability aims to develop a modern power grid by advancing cybersecurity technologies, intelligent and high-efficiency grid components, and energy storage systems. Electricity Delivery and Energy Reliability Research and Development.--The Committee continues to support the Department's research activities to ensure transmission reliability, but believes reliability and resiliency modeling, and the decisions taken by utility industry and emergency response planners, can be enacted through the use of advanced integrated analytical and decision-making tools. Within available funds for Transmission Reliability, $5,000,000 is for university, national laboratory, and industry research and development for competitively-awarded activities to develop multi-use integrated analytical and decision-making tools. Within available funds for Cybersecurity for Energy Delivery Systems, $9,000,000 is to continue development of the industry- scale electric grid test bed. The Committee notes the important role the National SCADA Testbed (NSTB) has played in enhancing power system cybersecurity. There remains a need for a capability to assess power system vulnerabilities, develop engineered solutions to mitigate them, share information and develop operational security training and best practices. Requested by its Section 9 entities, the Department, as the sector-specific agency, is encouraged to consider establishing an updated national laboratory NSTB capability to support its Section 9 and broader energy sector responsibilities. The Committee supports the strategic goals of the Grid Modernization Multi-year Program Plan and encourages the Department to continue implementation as in previous years. The Committee supports the Grid Modernization Laboratory Consortium leadership in a comprehensive, multi-disciplinary research and development program managed through a consortium of national laboratories, leveraging national laboratory assets and partnerships with non-federal entities. The Committee is pleased that the Department has undertaken peer review processes. The Committee encourages the Office of Electricity Delivery and Energy Reliability to continue to collaborate with the Office of Science and EERE on the energy storage portion of the Grid Modernization Multi-year Program Plan. The Department is also encouraged to consider opportunities to translate research between grid, vehicular, and other potential energy storage applications. Activities should be informed by priorities identified by the Department, national laboratories, electric utilities, and other members of private industry. The Committee notes that the Department has previously supported energy storage integration projects. The Department is encouraged to continue investment of energy storage systems at grid relevant scales and maximize the value stream of these technologies. In addition, the Committee supports the Department's ongoing efforts to improve electricity reliability and other grid integration initiatives. Accordingly, the Committee supports the Department's grid integration demonstration modules and urges the Department to continue collaborating with industrial and academic partners and the national laboratories involved in the grid integration consortium as they explore the integration of renewables with energy storage technologies. Nuclear Energy Appropriation, 2017................................... $1,016,616,000 Budget estimate, 2018................................. 703,000,000 Recommended, 2018..................................... 969,000,000 Comparison: Appropriation, 2017............................... -47,616,000 Budget estimate, 2018............................. +266,000,000 Nuclear power generates approximately one-fifth of the nation's electricity and will continue to be an important baseload energy source in the future. The Department of Energy's Nuclear Energy (NE) program invests in research, development, and demonstration activities that develop the next generation of clean and safe reactors, further improve the safety of our current reactor fleet, and contribute to the nation's long-term leadership in the global nuclear power industry. NUCLEAR ENERGY RESEARCH AND DEVELOPMENT Nuclear Energy Enabling Technologies.--Within available funds, $47,000,000 is for Crosscutting Technology Development, of which $10,000,000 is for work on advanced sensors and instrumentation, $6,000,000 is for hybrid energy systems, and up to $30,000,000 is to support development of advanced reactor technologies and high-priority crosscutting research and development areas; $36,000,000 is for the Nuclear Science User Facilities, of which $5,000,000 is for nuclear energy computation support; $34,200,000 is for Nuclear Energy Advanced Modeling and Simulation; and not less than $9,800,000 is for GAIN initiative activities. The recommendation does not include funds for the Energy Innovation Hub, but includes additional funding within Nuclear Energy Advanced Modeling and Simulation for competitive awards to continue similar activities. Integrated University Program.--The Committee recommends $5,000,000 to continue the Integrated University Program, which is critical to ensuring the nation's nuclear science and engineering workforce in future years. Reactor Concepts Research, Development, and Demonstration.--The recommendation includes $144,300,000 for Advanced Reactor Technologies, of which $60,000,000 is for a solicitation to support technical, first-of-its-kind engineering and design and regulatory development of next generation light water and non-light water reactor technologies, including small modular reactors. The Department is encouraged to work with the Nuclear Regulatory Commission to ensure appropriate component, system, and plant certification, regulation, and licensing support is provided to developers of next generation technologies as a part of these activities. The recommendation also includes $30,000,000 for fuel and graphite qualification and up to $5,000,000 for a MW-scale reactor study. The recommendation includes $35,000,000 for research and development to support efforts to develop a versatile fast test reactor. The Committee also supports the current fleet of reactors as they continue to ensure safe and reliable operations and includes $40,000,000 for the Light Water Reactor Sustainability program. The Department shall continue to work with the National Aeronautics and Space Administration (NASA) to ensure an adequate supply of plutonium-238 is available for future NASA space exploration missions. Fuel Cycle Research and Development.--Within available funds, the recommendation provides $71,000,000 for the Advanced Fuels Program, of which not less than $35,000,000 is for the accident tolerant fuels activity and $8,000,000 is for additional support of capability development of transient testing, including test design, modeling, and simulation; $24,000,000 for Material Recovery and Waste Form Development to maintain U.S. competency in the area of fuel cycle technologies; and $8,500,000 for Systems Analysis and Integration. The recommendation provides $45,000,000 to continue generic Used Nuclear Fuel Disposition research and development activities and notes that some previous activities supported by this account are now included within the funding provided to restart Yucca Mountain licensing activities. IDAHO FACILITIES MANAGEMENT INL Operations and Infrastructure.--Within available funds, the recommendation includes $238,000,000 for INL Operations and Infrastructure to support the MFC and ATR Five Year Plan to increase reliability and sustainability. Fossil Energy Research and Development Appropriation, 2017................................... $668,000,000 Budget estimate, 2018................................. 280,000,000 Recommended, 2018..................................... 634,600,000 Comparison: Appropriation, 2017............................... -33,400,000 Budget estimate, 2018............................. +354,600,000 Fossil energy resources, such as coal, oil, and natural gas, generate approximately 65 percent of the nation's electricity and will continue to provide for the majority of our needs for the foreseeable future. The Fossil Energy Research and Development program funds research, development, and demonstration activities to improve existing technologies and to develop next-generation systems in the full spectrum of fossil energy areas. At a time when fossil fuel power generation is expanding around the globe, the activities funded within this program advance our nation's position as a leader in fossil energy technologies and ensure that we use the full extent of our domestic resources safely and efficiently. The Committee notes that the budget request proposed a restructuring of the ``NETL Research and Operations'' and ``NETL Infrastructure'' accounts. That restructuring is not included, and the recommendation instead continues the budget structure from fiscal year 2017. COAL--CCS AND POWER SYSTEMS The Department is directed to use funds within the coal program only for coal research and development, with the exception of the Supercritical Transformational Electric Power Generation Initiative, which has applications to all high- temperature fossil heat sources. The recommendation provides $25,000,000 to continue to support the solicitation for two large-scale pilots that focus on transformational coal technologies that represent a new way to convert energy to enable a step change in performance, efficiency, and the cost of electricity compared to today's technologies. Such technologies include thermodynamic improvements in energy conversion and heat transfer, such as pressurized oxygen combustion and chemical looping, and improvements in carbon capture systems technology. In making the awards for large-scale pilots, the Department should prioritize entities that have previously received funding for these technologies at the lab and bench scale. The Committee also notes that the budget request recommends a significant restructuring of the National Energy Technology Laboratory (NETL). The Committee does not support the closure of any NETL sites and provides no funds to plan, develop, implement, or pursue the consolidation or closure of any of the NETL sites. The Committee supports the integrated carbon and energy management activities of NE and EERE and provides $2,000,000 for Hybrid Carbon Conversion activities within Fossil Energy. Carbon Storage.--The Department is encouraged to fund activities that promote the reuse of captured carbon from coal for the production of fuel and other valuable products. Advanced Energy Systems.--Within available funds, $8,000,000 is for the Advanced Air Separation Program to continue activities improving advanced air separation technologies and $30,000,000 is for Solid Oxide Fuel Cells to focus on research and development to enable efficient, cost- effective electricity generation with minimal use of water and the use of abundant domestic coal and natural gas resources with near-zero atmospheric emissions of CO2 and pollutants. Moreover, central power generation applications of solid oxide fuel cells can be integrated with carbon capture and storage efforts to contribute to a secure energy future. The Committee encourages the Department to support field pilot programs to advance this technology to commercial success. The Committee urges the Department to fund research and development activities to improve the efficiency of gas turbines used in power generation systems, working cooperatively with industry, universities, and other appropriate parties. Crosscutting Research.--Within available funds, the recommendation provides $16,000,000 for Coal Utilization Science and $31,500,000 for Plant Optimization Technologies, of which $15,000,000 is for the Advanced Ultrasupercritical Program to fabricate, qualify, and develop domestic suppliers capable of producing components from high temperature materials. The Committee encourages the Department to advance technologies that address near-term water needs to treat wastewater or other alternate water sources from operative coal power plants while generating excess electricity to offset water treatment costs. The Committee supports the Department's Historically Black Colleges and Universities and Hispanic-Serving Institutions education and training program and recommends $1,000,000 to award research grants to qualifying universities and institutions. NETL Coal Research and Development.--The recommendation includes $15,000,000 for the Department to expand its external agency activities to develop and test commercially viable advanced separation technologies at proof-of-concept or pilot scale that can be deployed near term for the extraction and recovery of rare earth elements and minerals from U.S. coal and coal byproduct sources having the highest potential for success. The Committee encourages the Department to leverage the capabilities of outside applied researchers in implementing these activities. NATURAL GAS TECHNOLOGIES Research.--Within available funds, the recommendation provides $7,000,000 for Environmentally Prudent Development and $5,200,000 for the Risk Based Data Management System. The Department is encouraged to explore technologies that curtail methane gas emissions from flaring and venting in shale formations. The Department is also encouraged to support funding research and development concerning technologies to convert flared and vented storage tank waste gas to electricity. UNCONVENTIONAL FOSSIL ENERGY TECHNOLOGIES Prior investment in this area has led to the current shale gas revolution and continued research and development is vital for the efficient and sustainable development of this resource. The Committee encourages the Department to focus resources on university-based research in fundamental oil and gas research to explore improved oil recovery from unconventional reservoirs, enhanced oil recovery for conventional reservoirs, and safe and environmentally friendly deep water oil and gas technologies. The Committee also encourages the Department to support efforts to increase production of unconventional fossil fuels through advanced technology and modeling, including optimizing high resolution and time-lapse geophysical methods for improved resource detection and better rock characterization at the micro- and nano-scale. Additionally, the Department is encouraged to examine the feasibility of utilizing geothermal energy from produced fluids for in-field energy requirements. The Committee is pleased with the Department's progress to date on studying the volatility of crude oil from the Bakken Shale in North Dakota and accurately assessing and characterizing volatility while transporting. The Committee directs the Department to continue this research in partnership with the Department of Transportation to improve the safety of crude oil transported by rail in this country. The Committee notes the fiscal year 2017 report directed the Department to issue a report on the feasibility of establishing an ethane storage and distribution hub in the United States. The Committee expects this report to be delivered in a timely manner. NETL INFRASTRUCTURE Within available funds, the recommendation provides $5,500,000 for NETL's Supercomputer, Joule. Naval Petroleum and Oil Shale Reserves Appropriation, 2017................................... $14,950,000 Budget estimate, 2018................................. 4,900,000 Recommended, 2018..................................... 4,900,000 Comparison: Appropriation, 2017............................... -10,050,000 Budget estimate, 2018............................. - - - The Naval Petroleum and Oil Shale Reserves no longer serve the national defense purpose envisioned in the early 1900's, and consequently the National Defense Authorization Act for fiscal year 1996 required the sale of the Government's interest in the Naval Petroleum Reserve 1 (NPR-1). To comply with this requirement, the Elk Hills field in California was sold to Occidental Petroleum Corporation in 1998. Following the sale of Elk Hills, the transfer of the oil shale reserves, and transfer of administrative jurisdiction and environmental remediation of the Naval Petroleum Reserve 2 (NPR-2) to the Department of the Interior, the Department retained one Naval Petroleum Reserve property, the Naval Petroleum Reserve 3 (NPR-3) in Wyoming (Teapot Dome field). The Department issued a disposition plan for NPR-3 in June 2013 and began implementation of the plan in fiscal year 2014. Transfer of NPR-3 to a new owner occurred in fiscal year 2015. Strategic Petroleum Reserve Appropriation, 2017................................... $223,000,000 Budget estimate, 2018................................. 180,000,000 Recommended, 2018..................................... 252,000,000 Comparison: Appropriation, 2017............................... +29,000,000 Budget estimate, 2018............................. +72,000,000 The mission of the Strategic Petroleum Reserve is to store petroleum to reduce the adverse economic impact of a major petroleum supply interruption to the U.S. and to carry out obligations under the international energy program. The recommendation includes funding to address facilities development and operations, including physical security and cavern integrity, and to maintain 1,000,000 barrels of gasoline blendstock in the Northeast Gasoline Supply Reserve. The recommendation includes legislative language to direct the Secretary to draw down and sell crude oil from the Strategic Petroleum Reserve, with proceeds to be deposited into the Energy Security and Infrastructure Modernization Fund for use in carrying out the Life Extension II project. This drawdown and use of proceeds is in accordance with section 404 of the Bipartisan Budget Act of 2015. Northeast Home Heating Oil Reserve Appropriation, 2017................................... $6,500,000 Budget estimate, 2018................................. 6,500,000 Recommended, 2018..................................... 6,500,000 Comparison: Appropriation, 2017............................... - - - Budget estimate, 2018............................. - - - The acquisition and storage of heating oil for the Northeast began in August 2000 when the Department of Energy, through the Strategic Petroleum Reserve account, awarded contracts for the lease of commercial storage facilities and acquisition of heating oil. The purpose of the reserve is to assure home heating oil supplies for the Northeastern States during times of very low inventories and significant threats to the immediate supply of heating oil. The Northeast Home Heating Oil Reserve was established as a separate entity from the Strategic Petroleum Reserve on March 6, 2001. The reserve contains one million barrels of Ultra Low Sulfur Diesel (ULSD), which is the equivalent of three to four days of emergency stocks in the Northeast. Energy Information Administration Appropriation, 2017................................... $122,000,000 Budget estimate, 2018................................. 118,000,000 Recommended, 2018..................................... 118,000,000 Comparison: Appropriation, 2017............................... -4,000,000 Budget estimate, 2018............................. - - - The Energy Information Administration is a quasi- independent agency within the Department of Energy established to provide timely, objective, and accurate energy-related information to the Congress, the executive branch, state governments, industry, and the public. The Committee is appreciative of the Energy Information Administration's efforts in establishing a National Oil and Gas Gateway. Non-Defense Environmental Cleanup Appropriation, 2017................................... $247,000,000 Budget estimate, 2018................................. 218,400,000 Recommended, 2018..................................... 222,400,000 Comparison: Appropriation, 2017............................... -24,600,000 Budget estimate, 2018............................. +4,000,000 Non-Defense Environmental Cleanup includes funds to manage and remediate sites used for civilian, energy research, and non-defense related activities. These past activities resulted in radioactive, hazardous, and mixed waste contamination that requires remediation, stabilization, or some other action. Small Sites.--Within Small Sites, $12,000,000 is for Idaho National Laboratory, including increases needed to complete security systems upgrades at the Fort Saint Vrain spent fuel storage installation that were deferred in fiscal year 2017. Oak Ridge Activities.--Since fiscal year 2015, Congress has provided support for a memorandum of agreement for historic preservation of the K-25 gaseous diffusion uranium enrichment facility in Oak Ridge, Tennessee. Not later than 30 days after the enactment of this Act, the Department shall provide to the Committees on Appropriations of both Houses of Congress a report that describes the Department's plan, total cost, and proposed schedule for meeting the commitments made in its agreement. Uranium Enrichment Decontamination and Decommissioning Fund Appropriation, 2017................................... $768,000,000 Budget estimate, 2018................................. 752,749,000 Recommended, 2018..................................... 768,000,000 Comparison: Appropriation, 2017............................... - - - Budget estimate, 2018............................. +15,251,000 The Uranium Enrichment Decontamination and Decommissioning Fund was established by the Energy Policy Act of 1992 to pay for the cleanup of gaseous diffusion plants at Portsmouth, Ohio; Paducah, Kentucky; and the East Tennessee Technology Park in Oak Ridge, Tennessee. Title X Uranium/Thorium Reimbursements.--The Committee recommends $32,959,000 to reimburse private licensees for the cost of cleaning up uranium and thorium processing sites in accordance with title X of the Energy Policy Act of 1992. The Committee expects the Department to reimburse licensees for all previous expenses including costs related to remediation, restoration, and oversight of these programs and to ensure all of the impacted communities are made whole. Fulfilling the obligation to fully reimburse licensees is important to the health and safety of the impacted communities. The Committee expects the Department of Energy to continue to provide sufficient resources within future budgets to reimburse licensees for approved claim balances in a timely manner and to avoid accumulating balances and liabilities. Uranium transfers.--Not later than 90 days after the enactment of this Act, the Department shall provide to the Committees on Appropriations of both Houses of Congress a report with recommendations to minimize the impact of uranium transfers on the domestic uranium mining, conversion, and enrichment industries, including any actions that would require new authority for the Department to implement. The report shall specify any new legal authorities necessary for the Department to contract directly with domestic uranium industries to introduce uranium into the market. Science Appropriation, 2017................................... $5,392,000,000 Budget estimate, 2018................................. 4,472,516,000 Recommended, 2018..................................... 5,392,000,000 Comparison: Appropriation, 2017............................... - - - Budget estimate, 2018............................. +919,484,000 The Office of Science funds basic science research across national laboratories, universities, and other research institutions in support of American innovation and the Department's energy-focused missions. Through research in physics, biology, chemistry, and other science disciplines, these activities expand scientific understanding and secure the nation's leadership in energy innovation. The Office of Science is the nation's largest supporter of basic research in the physical sciences. The Science program office includes Advanced Scientific Computing Research, Basic Energy Sciences, Biological and Environmental Research, Fusion Energy Sciences, High Energy Physics, Nuclear Physics, Workforce Development for Teachers and Scientists, Science Laboratories Infrastructure, Safeguards and Security, and Program Direction. The Committee has placed a high priority on funding these activities in fiscal year 2018, given the private sector is not likely to fund research whose findings either have high non-commercial value or are not likely to be commercialized in the near or medium term. This work is vital to sustaining the scientific leadership of the United States and can provide the underpinnings for valuable intellectual property in the coming decades. The Department is directed to submit to the Committees on Appropriations of both Houses of Congress not later than 120 days after the enactment of this Act a solar fuels research initiative strategic plan. The 10-year plan should discuss research challenges and opportunities, program goals, and milestones to overcome scientific and technological impediments. The plan should also include a description of the planned coordination between the Office of Science and EERE to leverage basic research and early-stage translational research in solar fuels to accelerate the pace of innovation, an assessment of U.S. leadership in solar fuels research relative to international competition, and the extent to which investments are sufficient to maintain U.S. leadership. ADVANCED SCIENTIFIC COMPUTING RESEARCH The Advanced Scientific Computing Research program develops and hosts some of the world's fastest computing and network capabilities to enable science and energy modeling, simulation, and research. Exascale Computing Project.--The recommendation includes $170,000,000 for exascale activities. High Performance Computing and Network Facilities.--In addition to the long-term exascale initiative, the Committee supports continued upgrade and operation of the Leadership Computing Facilities at Argonne and Oak Ridge national laboratories and of the High Performance Production Computing capabilities at Lawrence Berkeley National Laboratory. The recommendation includes $100,000,000 for the Argonne Leadership Computing Facility, $112,000,000 for the Oak Ridge Leadership Computing Facility, and $92,000,000 for the National Energy Research Scientific Computing Center at Lawrence Berkeley National Laboratory. Within available funds, the recommendation includes $65,000,000 to support necessary infrastructure upgrades and operations for ESnet. The Committee is concerned that the deployment plan for an exascale machine has undergone major changes without an appropriately defined cost and performance baseline. The Department is directed to provide to the Committees on Appropriations of both Houses of Congress not later than 90 days after the enactment of this Act an update to the exascale plan that includes a detailed cost and performance baseline, taking into account flat and slightly increasing funding assumptions, for the technological challenges remaining to be solved to deliver an exascale machine. BASIC ENERGY SCIENCES The Basic Energy Sciences program funds basic research in materials science, chemistry, geoscience, and bioscience. The science breakthroughs in this program enable a broad array of innovation in energy technologies and other industries critical to American economic competitiveness. Research.--The recommendation provides no funding for the continued operation of the Batteries and Energy Storage Innovation Hub and the Fuels from Sunlight Innovation Hub. However, the recommendation includes $10,000,000 for competitive awards that continue similar research activities previously supported by the Hubs. Within available funds, the Committee directs the continued support of all the nanoscience research centers and urges optimal operations for all the light sources. The recommendation includes $15,000,000 for the Experimental Program to Stimulate Competitive Research, $489,109,000 for facilities operations of the nation's light sources, $261,000,000 for facilities operations of the high flux neutron sources, and $122,272,000 for facilities operations of the nanoscale science research centers. BIOLOGICAL AND ENVIRONMENTAL RESEARCH The Biological and Environmental Research (BER) program supports advances in energy technologies and related science through research into complex biological and environmental systems. The Committee encourages the Department to give priority to optimizing the operation of BER user facilities and the programs that utilize them. The Committee continues to support the Department's funding for academia to perform studies that include the collection and evaluation of atmospheric data from satellite observations obtained in cooperation with NASA. Satellite observations of the atmosphere, within the context of the Earth as a global system, provide information that is critical in the interpretation of earth-based observations. Additionally, the Department encourages cooperative research on this topic with the national laboratories and the National Oceanic and Atmospheric Administration. The Committee notes that the Office of Biological and Environmental Research has pioneered research in fundamental genomic science of plants and microbes. The Committee urges the Department to build upon and leverage this expertise and to invest in scientific infrastructure needed to facilitate a deeper understanding of the fundamental principles governing microbiome establishment, function, and interactions in diverse environments, fostering a predictive understanding of how microbiomes interact with plants, control the availability of materials such as carbon, nutrients, and contaminants, and respond to changes in the environment. The recommendation includes $40,000,000, the same as the budget request, for the Bioenergy Research Centers selected from recompetition in fiscal year 2017. Additionally, the recommendation supports the operation of the Joint Genome Institute. FUSION ENERGY SCIENCES The Fusion Energy Sciences program supports basic research and experimentation aiming to harness nuclear fusion for energy production. University-led research helps further U.S. research in fusion energy and trains the next generation of scientists. In fiscal year 2017, the Department was directed to summarize the fusion energy sciences program's current collaborations with universities and report back to the Committee. The Committee looks forward to the results of this report. Research.--The Committee recommends $214,027,000 for burning plasma science foundations, $42,069,000 for burning plasma science long pulse, and $75,904,000 for discovery plasma science. Within available funds, the recommendation provides $17,500,000 for High Energy Density Laboratory Plasmas and $17,000,000 for Scientific Discovery through Advanced Computing. Construction.--The Committee recommends $63,000,000 for the U.S. contribution to the ITER project. The Committee continues to believe the ITER project represents an important step forward for energy sciences and has the potential to revolutionize the current understanding of fusion energy. HIGH ENERGY PHYSICS The High Energy Physics program supports fundamental research into the elementary constituents of matter and energy and ultimately into the nature of space and time. The program focuses on particle physics theory and experimentation in three areas: the energy frontier, which investigates new particles and fundamental forces through high-energy experimentation; the intensity frontier, which focuses on rare events to better understand our fundamental model of the universe's elementary constituents; and the cosmic frontier, which investigates the nature of the universe and its form of matter and energy on cosmic scales. Research.--Within available funds, the recommendation provides $9,800,000 for the Large Synoptic Survey Telescope Camera and $29,500,000 for the dark energy and dark matter experiments. NUCLEAR PHYSICS The Nuclear Physics program supports basic research into the fundamental particles that compose nuclear matter, how they interact, and how they combine to form the different types of matter observed in the universe today. Operations and Maintenance.--Within available funds, the Department is encouraged to fund optimal operations at Thomas Jefferson National Accelerator Facility to support runtime at the 12GeV Continuous Electron Beam Accelerator Facility and at Brookhaven National Laboratory to support runtime at the Relativistic Heavy Ion Collider. Nuclear Waste Disposal Appropriation, 2017................................... $- - - Budget estimate, 2018................................. 90,000,000 Recommended, 2018..................................... 90,000,000 Comparison: Appropriation, 2017............................... +90,000,000 Budget estimate, 2018............................. - - - The Committee recommendation includes $90,000,000 for Nuclear Waste Disposal to continue the Department of Energy's statutorily required activities for the Yucca Mountain license application. Within available funds, the Department is directed to reestablish its capability to respond to the Nuclear Regulatory Commission during the adjudicatory process and to otherwise fully support the Yucca Mountain licensing process. The recommendation includes support for affected units of local government that have formally consented to host Yucca Mountain. Title 17 Innovative Technology Loan Guarantee Program ADMINISTRATIVE EXPENSES (INCLUDING RESCISSIONS OF FUNDS) GROSS APPROPRIATION Appropriation, 2017................................... $37,000,000 Budget estimate, 2018................................. 2,000,000 Recommended, 2018..................................... 2,000,000 Comparison: Appropriation, 2017............................... -35,000,000 Budget estimate, 2018............................. - - - OFFSETTING COLLECTIONS Appropriation, 2017................................... $-30,000,000 Budget estimate, 2018................................. -2,000,000 Recommended, 2018..................................... -2,000,000 Comparison: Appropriation, 2017............................... +28,000,000 Budget estimate, 2018............................. - - - RESCISSION Appropriation, 2017................................... $- - - Budget estimate, 2018................................. -250,000,000 Recommended, 2018..................................... -411,000,000 Comparison: Appropriation, 2017............................... -411,000,000 Budget estimate, 2018............................. -161,000,000 NET APPROPRIATION Appropriation, 2017................................... $7,000,000 Budget estimate, 2018................................. -250,000,000 Recommended, 2018..................................... -411,000,000 Comparison: Appropriation, 2017............................... -418,000,000 Budget estimate, 2018............................. -161,000,000 The Committee notes that the rescinded loan authority excludes authority used for conditional commitments made by October 1, 2017. Advanced Technology Vehicles Manufacturing Loan Program Appropriation, 2017................................... $5,000,000 Budget estimate, 2018................................. 2,000,000 Recommended, 2018..................................... 5,000,000 Comparison: Appropriation, 2017............................... - - - Budget estimate, 2018............................. +3,000,000 The Energy Independence and Security Act of 2007 established a direct loan program to support the development of advanced technology vehicles and associated components in the United States. The program provides loans to automobile and automobile part manufacturers for the cost of re-equipping, expanding, or establishing manufacturing facilities in the United States to produce advanced technology vehicles or qualified components, and for associated engineering integration costs. The funds provided support administrative operations only. Tribal Energy Loan Guarantee Program Appropriation, 2017................................... $- - - Budget estimate, 2018................................. - - - Recommended, 2018..................................... 500,000 Comparison: Appropriation, 2017............................... +500,000 Budget estimate, 2018............................. +500,000 The Energy Policy Act of 2005 established a loan guarantee program for energy development to provide or expand electricity on Indian land. The funds provided support administrative operations only. Departmental Administration GROSS APPROPRIATION Appropriation, 2017................................... $246,000,000 Budget estimate, 2018................................. 241,652,000 Recommended, 2018..................................... 281,693,000 Comparison: Appropriation, 2017............................... +35,693,000 Budget estimate, 2018............................. +40,041,000 REVENUES Appropriation, 2017................................... $-103,000,000 Budget estimate, 2018................................. -96,000,000 Recommended, 2018..................................... -96,000,000 Comparison: Appropriation, 2017............................... +7,000,000 Budget estimate, 2018............................. - - - NET APPROPRIATION Appropriation, 2017................................... $143,000,000 Budget estimate, 2018................................. 145,652,000 Recommended, 2018..................................... 185,693,000 Comparison: Appropriation, 2017............................... +42,693,000 Budget estimate, 2018............................. +40,041,000 Funding recommended for Departmental Administration provides for general management and program support functions benefiting all elements of the Department of Energy, including the National Nuclear Security Administration. The account funds a wide array of Headquarters activities not directly associated with the execution of specific programs. The recommendation includes six reprogramming control points in this account to provide flexibility in the management of support functions. Other Departmental Administration includes Management, Project Management Oversight and Assessments, Chief Human Capital Officer, Office of Technology Transitions, Office of Small and Disadvantaged Business Utilization, General Counsel, Energy Policy and Systems Analysis, International Affairs, and Public Affairs. The Department is directed to continue to submit a budget request that proposes a separate funding level for each of these activities. Economic Impact and Diversity.--The recommendation includes $10,169,000 for Economic Impact and Diversity, the same as fiscal year 2017 and $169,000 more than the budget request. Chief Information Officer.--The recommendation includes $126,274,000, including $91,443,000 as requested within Departmental Administration and $34,831,000 as requested for CyberOne activities within the DOE working capital fund. Within this amount, not less than $68,974,000 shall be for cybersecurity and secure information. To enhance the accountability for management of cyber resources, the Committee recommendation consolidates cybersecurity funding under the Office of the Chief Information Officer. Renewable Fuel Standard.--Under section 211(o)(9)(B) of the Clean Air Act, a small refinery may petition the Environmental Protection Agency (EPA) Administrator for an exemption from the Renewable Fuel Standard (RFS) on the basis that the refinery experiences a disproportionate economic hardship under the RFS. When evaluating a petition, the Administrator consults with the Secretary of Energy to determine whether disproportionate economic hardship exists. According to the Department's March 2011 Small Refinery Exemption Study, disproportionate economic hardship must encompass two broad components: a high cost of compliance relative to the industry average disproportionate impacts and an effect sufficient to cause a significant impairment of the refinery operations viability. If the Secretary finds that either of these two components exists, the Committee directs the Secretary to recommend to the EPA Administrator at least a 50 percent waiver of RFS requirements for the petitioner. The Committee also directs the Secretary to score all of the metrics in the study and to score the metrics according to the 2011 study scoring criteria and not any later addendum to the study. The Secretary is directed to seek small refinery comment before making changes to its scoring metrics for small refinery petitions for RFS waivers and to notify the Committee prior to making any final changes to scoring metrics. Only the impact on the small refinery's transportation fuel margins are pertinent to measuring RFS impacts on relative refining margins. The Committee notes that the conference report accompanying the Energy and Water Development and Related Agencies Appropriations Act, 2010, addressed similar issues and directed the Secretary to redo an earlier study done to evaluate whether the RFS program imposes a disproportionate economic hardship on small refineries. In calling for the Secretary to redo the study, the conference report cited the lack of small refinery input into the earlier study, concerns about regional RFS compliance cost disparities, small refinery dependence on the purchase of renewable fuel credits (RINs), and increasing RIN costs. Since then, the dramatic rise in RIN prices has amplified RFS compliance and competitive disparities, especially where unique regional factors exist, including high diesel production, no export access, and limited biodiesel infrastructure and production. In response to petitions in prior years, the Secretary determined that the RFS program would impose a disproportionate economic and structural impact on several small refineries. Despite this determination, the Secretary did not recommend, and EPA did not provide, any RFS relief because it determined the refineries were profitable enough to afford the cost of RFS compliance without substantially impacting their viability. The Committee reminds the Secretary that the RFS program may impose a disproportionate economic hardship on a small refinery even if the refinery makes enough profit to cover the cost of complying with the program. Small refinery profitability does not justify a disproportionate regulatory burden where Congress has explicitly given EPA authority, in consultation with the Secretary, to reduce or eliminate this burden. Office of the Inspector General Appropriation, 2017................................... $44,424,000 Budget estimate, 2018................................. 49,000,000 Recommended, 2018..................................... 49,000,000 Comparison: Appropriation, 2017............................... +4,576,000 Budget estimate, 2018............................. - - - The Office of the Inspector General performs agency-wide audit, inspection, and investigative functions to identify and correct management and administrative deficiencies that create conditions for existing or potential instances of fraud, waste, and mismanagement. The audit function provides financial and performance audits of programs and operations. The inspections function provides independent inspections and analyses of the effectiveness, efficiency, and economy of programs and operations. The investigative function provides for the detection and investigation of improper and illegal activities involving programs, personnel, and operations. To the extent possible, the Inspector General shall ensure the findings of its investigative reports are made available to the Committee and the public. Revised reports may be required in order to protect information that would otherwise limit distribution to Internal Official Use Only. ATOMIC ENERGY DEFENSE ACTIVITIES The Atomic Energy Defense Activities programs of the Department of Energy in the National Nuclear Security Administration (NNSA) consist of Weapons Activities, Defense Nuclear Nonproliferation, Naval Reactors, and Federal Salaries and Expenses; outside of the NNSA, these include Defense Environmental Cleanup, Other Defense Activities, and Defense Nuclear Waste Disposal. Descriptions of each of these accounts are provided below. NATIONAL NUCLEAR SECURITY ADMINISTRATION The Department of Energy is responsible for enhancing U.S. national security through the military application of nuclear technology and reducing the global danger from the proliferation of weapons of mass destruction. The NNSA, a semi- autonomous agency within the Department, carries out these responsibilities. Established in March 2000 pursuant to title 32 of the National Defense Authorization Act for Fiscal Year 2000, the NNSA is responsible for the management and operation of the nation's nuclear weapons complex, naval reactors, and nuclear nonproliferation activities. The recommendation includes $13,914,400,000 for the NNSA, $976,148,000 above fiscal year 2017 and $16,600,000 below the budget request. Weapons Activities Appropriation, 2017................................... $9,318,093,000 Budget estimate, 2018................................. 10,239,344,000 Recommended, 2018..................................... 10,239,344,000 Comparison: Appropriation, 2017............................... +921,251,000 Budget estimate, 2018............................. - - - Weapons Activities ensures the safety, security, reliability, and effectiveness of the nation's nuclear weapons stockpile without nuclear testing by providing funding to four main elements: Directed Stockpile Work; Research, Development, Technology and Engineering; Infrastructure and Operations; and Security. Affordability of Nuclear Modernization Programs.--To ensure that the nation's existing nuclear weapons remain safe, reliable, and effective, the NNSA must modernize the nuclear weapons stockpile and its related infrastructure. As recommended by the Government Accountability Office (GAO), the NNSA is directed to include an assessment of the affordability of NNSA's portfolio of modernization programs in future versions of its Stockpile Stewardship and Management Plan and options to bring its estimates of modernization funding needs into alignment with potential future budgets. Improving the Efficiency of NNSA Sites.--Over the past several years, the DOE Inspector General has identified issues with the management and oversight of the indirect cost pools at the NNSA sites, including the use of general and administrative funds to conduct research into laser inertial fusion energy, improper use of licensing and royalty funds for a National Geographic documentary, improper payments for consultants not attributed to any scope of work, and hundreds of millions in questioned, unresolved and potentially unallowable costs. Recently, the NNSA provided the Committee with a notification that it intended to perform an additional $76,800,000 in infrastructure projects that were previously unreported, are of limited benefit to the weapons program, and are over budget. These additional costs will ultimately be charged proportionally to all program activities at the laboratories via the indirect cost pools, including life extension programs whose costs are already trending upwards. The NNSA must take action to keep costs in line and complete its projects on time and on budget by reducing the proliferation of non-mission and administrative costs being charged to weapons programs at its nuclear weapons laboratories and production sites. Not later than 120 days after the enactment of this Act, the NNSA shall provide to the Committees on Appropriations of both Houses of Congress a plan to reduce the rates of its overhead indirect cost pools at each site by at least five percent in aggregate by fiscal year 2020. Improving the Return on Infrastructure Investments.--The Committee is concerned that the NNSA's prioritization, planning, and execution of its infrastructure activities does not adequately address the need to reduce the high maintenance and operating cost of its facilities or the need to control project scope to provide the best value to the taxpayer while still meeting requirements. The NNSA has not budgeted sufficiently for risk reduction in excess facilities or footprint reduction projects and appears to have abandoned its previous goals to reduce the footprint and operating costs of its Albuquerque Federal Complex. The NNSA has not moved forward with mature projects that would eliminate the need to maintain and upgrade security zones while improving site security postures, such as the West End Protected Area Reduction project at Y-12 or the Material Staging Facility at Pantex. Instead, the budget request proposes a new Tritium Production Capability Project to construct 30,000 square feet of new processing space at a high end cost of $16,633 per square foot, which would be the highest cost per square foot of any NNSA nuclear facility to date. Within infrastructure and operations and security, the Committee recommendation makes efforts, where possible, to improve efficiency, address the safety issues and risks posed by aging legacy facilities, and more effectively meet goals to modernize and upgrade the NNSA's infrastructure. In addition, the Committee continues to place a strong emphasis on reducing the backlog of deferred maintenance. DIRECTED STOCKPILE WORK Directed Stockpile Work includes all activities that directly support weapons in the nuclear stockpile, including maintenance, research, development, engineering, certification, dismantlement, and disposal activities. The Committee recommends $3,977,026,000 for Directed Stockpile Work, $668,999,000 above fiscal year 2017 and the same as the budget request. Life Extension Programs.--The recommendation provides full funding for the NNSA's life extension programs, including the ongoing refurbishment efforts for the B61, W76, W88, and W80 warheads. W80-4 Life Extension Program.--The NNSA's Office of Cost Estimating and Program Evaluation is directed to conduct a review on the alternatives analyzed for the W80-4 life extension program and report to the Committees on Appropriations of both Houses of Congress not later than 60 days after the enactment of this Act on whether the NNSA considered a wide range of alternatives that would meet requirements and whether accurate cost data regarding potential alternatives was available and utilized to inform decision- making. Strategic Materials.--A secure supply of beryllium is essential to ensuring the reliability of the U.S. nuclear stockpile. Government manufacturing of beryllium has become increasingly outdated and expensive. The Committee encourages the NNSA to investigate the feasibility of developing a new and efficient contractor-operated beryllium and beryllium-oxide production capability that can supply NNSA needs more effectively and affordably. RESEARCH, DEVELOPMENT, TECHNOLOGY, AND ENGINEERING The NNSA's Research, Development, Technology, and Engineering (RDT&E) activities focus on the development and maintenance of critical capabilities, tools, and processes that support science-based stockpile stewardship and continued certification of the stockpile in the absence of underground nuclear testing. For RDT&E, the Committee recommends $2,003,632,000, $161,402,000 above fiscal year 2017 and $24,730,000 below the budget request. Science.--The recommendation supports the request to increase the number of subcritical experiments that are necessary to gather data and improve the physics-based computational models used for the annual assessment and certification of the nuclear weapons stockpile. Academic Alliances and Partnerships.--The recommendation includes $18,832,000 for the Minority Serving Institution Partnerships Program, including funding for Tribal Colleges and Universities. Inertial Confinement Fusion and High Yield.--The Committee recommends $522,959,000, of which $68,000,000 is for the OMEGA Laser Facility at the University of Rochester, $330,000,000 is for the National Ignition Facility (NIF), and $8,000,000 is for the Naval Research Laboratory. The NNSA has made little progress in achieving measurable results towards ignition over the past two years and does not plan to perform any assessments on its ability to achieve ignition until at least 2020. Not later than 120 days after the enactment of this Act, the NNSA shall provide to the Committees on Appropriations of both Houses of Congress a plan with specific performance milestones for its experimental activities that covers a five-year period and that includes milestones to achieve ignition and to support other stockpile activities. Advanced Simulation and Computing.--Within the amounts for exascale, $12,000,000 is provided for research on advanced memory technology research to address exascale technical challenges. INFRASTRUCTURE AND OPERATIONS Infrastructure and Operations provides funding for the operations, maintenance, and recapitalization of NNSA facilities and infrastructure. The Committee recommends $2,808,363,000 for Infrastructure and Operations, the same as fiscal year 2017 and $5,226,000 above the budget request. Operations of Facilities.--The recommendation includes $848,470,000 for Operations of Facilities. No funding is provided to prepare transuranic waste at Lawrence Livermore National Laboratory for shipment to the Waste Isolation Pilot Plant (WIPP). There is insufficient capacity to begin accepting newly-generated transuranic waste at WIPP due to the degraded status of its ventilation system. Newly-identified streams of transuranic wastes should not delay shipments that are already in the queue and that are required to meet cleanup commitments when alternatives may be available. The NNSA is directed to investigate alternatives for managing its newly-generated transuranic wastes, including storage and processing options available at other DOE sites, to meet operating needs until such time as additional capacity at WIPP is available. Maintenance and Repair of Facilities.--The Committee recommends $395,000,000. Within this amount, not less than $10,000,000 shall be to address structural, electrical, and other maintenance deficiencies within the deteriorating Lithium Production Facility. Recapitalization.--The Committee recommends $545,359,000 to restore funding for the Infrastructure and Safety program to the fiscal year 2017 level. Of the additional amounts provided above the budget request, $43,000,000 is to support excess facility disposition at the Pantex Plant, Y-12 National Security Site, and other NNSA sites, including up to $9,000,000 to demolish facilities and utilities along the proposed new leg of the PIDAS at the Y-12 National Security Complex and up to $7,000,000 to support de-inventory, risk reduction, and pre- demolition activities at Alpha 5 and Beta-4 that must be accomplished before the NNSA can transfer those facilities to the Office of Environmental Management. 18-D-650 Material Staging Facility, PX.--The Committee recommends $5,200,000 to advance plans to construct an underground facility for safe and efficient staging of weapons and weapons components that would enhance the site's security posture and reduce the future recapitalization mortgage related to Zone 4 West and the associated PIDAS replacements. 16-D-515 Albuquerque Complex Project, Albuquerque, NM.--The Committee recommends $18,000,000 to continue project engineering and design. Despite analyses it performed at the start of the project that concluded the NNSA would need 279,000 square feet of new office space to meet its needs, the project has grown in scope to a 333,000 square foot office complex since project funding was last provided by the Congress. None of the project funds may be available for construction until the NNSA can provide a design for new office space that will meet program mandates to reduce the footprint and achieve operating savings. 06-D-141 Uranium Processing Facility (UPF), Y-12.--In its fiscal year 2017 budget request, the NNSA reported it would have a sufficient amount of the design completed to establish a baseline and begin construction for the Main Process Building, Salvage and Accountability Building, and the Process Support Facilities in the fourth quarter of fiscal year 2017. The fiscal year 2018 budget request indicates these activities have slipped into the second quarter of fiscal year 2018 and the NNSA's cost estimates for design, equipment, and other construction activities have increased by $46,000,000, $33,000,000, and $409,000,000, respectively. To address these rising costs, the NNSA has redistributed $403,000,000, or 29 percent, of its project contingency funds that are budgeted to address unforeseen issues, and has proposed increasing funding $43,000,000 above the fiscal year 2018 estimates included in the fiscal year 2017 Future Years Nuclear Security Plan. The NNSA also does not have a certified and compliant earned value management system in place for the project, which is necessary to accurately track project performance. Given the trend in rising costs and slipping schedules before major facility construction has started, the Committee encourages the NNSA to put in place a valid performance tracking system and ensure that it sets a performance baseline that adequately addresses project risks. Furthermore, the NNSA is encouraged to take management action to limit scope creep and reduce risks that would otherwise result in the NNSA exceeding the cost commitment of $6,500,000,000. The recommendation includes $620,000,000, full funding of the fiscal year 2018 needs as reported in last year's projections for the project, but defers funding requested to address project cost growth until a full independent cost estimate has been provided to the Committees on Appropriations of both Houses of Congress. 04-D-125 Chemistry and Metallurgy Research (CMR) Replacement Project, LANL.--The Committee recommends $177,239,000. Funding for the CMR Replacement Project shall be limited to that of the original mission need for the project, that is, to relocate existing analytic chemistry and materials characterization capabilities from the legacy CMR facility, as directed in previous years. The Committee rejects the NNSA's continued proposal to restructure this 15 year-old project into a rolling series of open ended ``subprojects'' that have no clear scope and mission need associated with them. The NNSA has not resolved issues detailed by the GAO on setting clear parameters and requirements when structuring its plutonium recapitalization projects. The Committee is also concerned by the NNSA's recently announced plans to continue to operate the deteriorating CMR building instead of meeting its prior commitments to vacate the facility by 2019, despite the risks posed by the facility's location on a possible seismic fault. Not later than 30 days after the enactment of this Act, the NNSA shall provide to the Committees on Appropriations of both Houses of Congress a plan for vacating this facility as soon as possible that is not dependent on the NNSA's success in meeting pit production targets. SECURITY Physical Security Improvement Program.--The Committee recommends $30,000,000 to modernize and upgrade physical security systems at the NNSA sites that are nearing the end of design life. The NNSA did not propose sufficient funding in its budget request to begin to address the substantial backlog of projects for security infrastructure and is behind on providing a plan mandated by the Congress to address the issue. 17-D-710 West End Protected Area Reduction Project, Y-12.-- The Committee recommends $23,400,000. The NNSA is directed to provide to the Committees on Appropriations of both Houses of Congress quarterly updates on its progress in advancing the project until such time as the NNSA can demonstrate a commitment to move the project forward. LEGACY CONTRACTOR PENSIONS The Committee provides $232,050,000 for payments into the legacy University of California contractor employee defined benefit pension plans. Defense Nuclear Nonproliferation (INCLUDING RESCISSION OF FUNDS) Appropriation, 2017................................... $1,902,000,000 Budget estimate, 2018................................. 1,842,310,000 Recommended, 2018..................................... 1,825,461,000 Comparison: Appropriation, 2017............................... -76,539,000 Budget estimate, 2018............................. -16,849,000 The Defense Nuclear Nonproliferation account provides funding to programs of the National Nuclear Security Administration that prevent, counter, and respond to global nuclear threats. The Committee recommendation rescinds $49,000,000 in unexpended prior-year balances, as requested. Nuclear Posture Review.--With a Nuclear Posture Review currently underway, the Committee encourages the Administration to address the importance of nonproliferation activities in U.S. nuclear strategy, including efforts to prevent nuclear terrorism, counter the proliferation of nuclear material and technologies, stop the attainment of nuclear weapons capabilities, and enhance strategic stability. Continuing U.S. Nonproliferation Activities in Russia.--The recommendation includes no new funds to enter into contracts and agreements with Russia in fiscal year 2018, the same as fiscal year 2017 and the budget request. Commercial Nuclear Fuel Reprocessing.--In 1977, President Carter issued a policy statement prohibiting the commercial reprocessing and recycling of plutonium. DOE shall investigate the status of this policy and report to the Committees on Appropriations of both Houses of Congress on the impacts to the U.S. commercial nuclear power industry and whether it is in the U.S. national security interest to continue the policy. DEFENSE NUCLEAR NONPROLIFERATION Funding for the Office of Defense Nuclear Nonproliferation is provided across five programmatic areas: Global Material Security, Material Management and Minimization, Nonproliferation and Arms Control, Defense Nuclear Nonproliferation R&D, and Nonproliferation Construction. To preserve and advance science and engineering expertise in uranium for purposes of national security and nonproliferation, the Committee encourages the ongoing collaboration between the Office of Defense Nuclear Nonproliferation and the DOE Office of Intelligence and Counterintelligence. Global Material Security.--Within funds for domestic radiological materials, the recommendation includes up to $10,000,000 to expand the capacity of radiological security programs designed to replace cesium-137 chloride irradiation sources with alternate technologies that cannot be used in radiological dispersal devices. Replacing these cesium sources with safe alternatives provides permanent threat reduction and eliminates the need for the NNSA to assist in costly security upgrades to irradiator facilities. Within funds for Global Material Security, the recommendation includes $101,180,000 for Nuclear Smuggling Detection and Deterrence. Due to the delays in executing agreements with foreign nations, the NNSA has sufficient prior-year balances to support fiscal year 2018 needs. Material Management and Minimization.--Nuclear materials management plans at the Savannah River Site (SRS) indicate the site is planning to receive plutonium, uranium, and other nuclear materials for the next 15 years and that H-Canyon would, from fiscal years 2018 to 2024, process 40 metric tons of highly enriched uranium (HEU) to support the NNSA's HEU downblending activities. By the end of 2017, nearly 75 percent of the number of fuel assemblies or items in L-Basin will be materials transported from foreign and domestic research reactors to reduce proliferation risks and prevent theft and diversion. Many of the countries from which the NNSA has transported materials are high income nations, including Sweden, Belgium, Italy, and Japan. While the NNSA has raised the cost share to these countries, the substantial costs of receiving, storing, processing, and final disposition are nevertheless being transferred onto DOE's cleanup program. The EM budget is further burdened by the NNSA's need to restart plutonium disposal operations at SRS in order to avoid fines for its failure to meet MOX milestones. Not later than 60 days after the enactment of this Act, the NNSA shall provide to the Committees on Appropriations of both Houses of Congress a report on the costs to establish an enduring program for the repatriation and elimination of international fuel cycle materials to further U.S. nonproliferation and other nuclear security goals through the maintenance, operation, and upgrade of facilities currently funded within Nuclear Material Management of the Defense Environmental Cleanup appropriation. Conversion.--The Committee recommends $27,400,000 for national laboratory support of domestic Mo-99 production using low enriched uranium (LEU) targets and international agreements for the conversion of research reactors to LEU fuels. Funds requested for the development of LEU fuels for U.S. and DOE- owned nuclear reactors are provided within Defense Nuclear Nonproliferation R&D, as in fiscal year 2017. The recommendation does not include $19,600,000 requested to support the final cost share amounts for Mo-99 projects since sufficient unencumbered prior-year funds exist. While the NNSA continues to request close-out of the domestic Mo-99 development program, the Committee encourages the NNSA to reconsider competitively awarding new cooperative agreements given the limited success of the NNSA's program in establishing a secure domestic producer that does not use HEU. Material Disposition.--The Committee recommends $1,000,000 for the Uranium Lease and Takeback Program. The recommendation does not include $24,000,000 requested to conduct additional planning activities for the dilute and dispose alternative to the construction of the Mixed Oxide Fuel Fabrication (MOX) facility. The Congress has already appropriated $20,000,000 in prior years to develop higher fidelity lifecycle cost estimates and is awaiting the results of those efforts. MOX Fuel Fabrication Facility.--The Committee recommends $340,000,000. The recommendation provides sufficient funding to sustain the current pace of construction on the MOX facility in fiscal year 2018 and prohibits the use of MOX funding to terminate the project while the Congress is considering an alternative approach for disposing of these materials. Within available funds, $5,000,000 is provided for a federal owner's agent to provide independent and external assistance to the NNSA in providing oversight to the contractor and to ensure efficient execution of the MOX project. 18-D-150 Surplus Plutonium Disposition Project, SRS.--The recommendation includes no funds for this project. DOE does not yet have the legal or regulatory basis for diluting 34 metric tons of plutonium at Savannah River and disposing of that material in the Waste Isolation Pilot Plant (WIPP). In addition, DOE is specifically prohibited by 50 U.S.C 2566 from transferring plutonium into South Carolina until MOX production objectives are met. The Committee will not consider this proposal as an alternative to MOX until the NNSA submits a substantive programmatic proposal that includes: (1) legislative modifications needed to the WIPP Land Withdrawal Act and to statutory requirements for the disposition of weapons-usable plutonium at the Savannah River Site; (2) safety and environmental analyses that demonstrate that the 34 metric tons can be safely disposed of at WIPP, as required by the National Environmental Policy Act (NEPA); (3) detailed cost and schedule estimates that have been independently verified; and (4) a plan for negotiations with impacted states and the Russian Federation on modifications to the Plutonium Management Disposition Agreement if U.S. participation in the agreement is still in the interest of U.S. national security. 18-D-150 Plutonium Removal Project, SRS.--The Committee recognizes the NNSA's need to begin removing plutonium from the State of South Carolina and recommends $9,000,000 to dispose of up to 6 metric tons of plutonium that cannot be used for MOX fuel for which DOE has issued a record of decision and has obtained regulatory concurrence for disposal in WIPP. Not later than 30 days after the enactment of this Act, the NNSA shall provide to the Committees on Appropriations of both Houses of Congress a plan for removing from the State of South Carolina an amount of defense plutonium or defense plutonium materials equal to the amount of defense plutonium or defense plutonium materials transferred to the State after April 15, 2002. Defense Nuclear Nonproliferation Research and Development (DNN R&D).--The Committee recommends $523,595,000. As in fiscal year 2017, the recommendation includes funds for LEU fuels development for U.S. high performance research reactors within DNN R&D to better align research and development-related activities with the resident expertise for managing a long term development program within the Office of Defense Nuclear Nonproliferation, and to respond to concerns detailed in a National Academies study regarding the complexity of technical issues that must be overcome to convert those reactors over the next 15 years. The amount for LEU fuels development also includes funding to develop LEU fuel for the TREAT reactor. NUCLEAR COUNTERTERRORISM AND INCIDENT RESPONSE The NNSA's Nuclear Counterterrorism and Incident Response programs respond to and mitigate nuclear and radiological incidents worldwide in order to defend the nation from the threat of nuclear terrorism. The Committee recommends $277,360,000. LEGACY CONTRACTOR PENSIONS The Committee provides $40,950,000 for payments into the legacy University of California contractor employee defined benefit pension plans. Naval Reactors (INCLUDING TRANSFER OF FUNDS) Appropriation, 2017................................... $1,420,120,000 Budget estimate, 2018................................. 1,479,751,000 Recommended, 2018..................................... 1,486,000,000 Comparison: Appropriation, 2017............................... +65,880,000 Budget estimate, 2018............................. +6,249,000 The Naval Reactors (NR) program is responsible for all aspects of naval nuclear propulsion from technology development through reactor operations to ultimate reactor plant disposal. The program provides for the design, development, testing, and evaluation of improved naval nuclear propulsion plants and reactor cores. The recommendation fully funds the request to develop the Columbia-Class submarine, previously identified as the Ohio-replacement submarine, and to refuel the S8G prototype, which is closely linked to the Columbia-Class submarine. Infrastructure Reprioritization.--The Committee recommends a total of $619,382,000 to support infrastructure needs of Naval Reactors sites, an increase of $21,400,000 above fiscal year 2017 and $7,798,000 above the budget request. The recommendation reprioritizes infrastructure funds to prevent delays to plans to recapitalize NR's aging spent fuel infrastructure. NR's budget request does not adequately plan sufficient carryover to support the Idaho Spent Fuel Handling Recapitalization Project into fiscal year 2019. Rather, the project plans would have drawn down contingency balances in fiscal year 2018 and added an unacceptable amount of risk to completing the project on time and within budget. The recommendation includes funding for environmental remediation and laboratory facility regulation and compliance activities within funding for Naval Reactors Operations and Infrastructure at the levels planned for those activities in the fiscal year 2017 Future Years Nuclear Security Plan. Naval Reactors Development.--Within amounts for Naval Reactors Development, $82,500,000 is provided for Advanced Test Reactor Operations. Federal Salaries and Expenses Appropriation, 2017................................... $390,000,000 Budget estimate, 2018................................. 418,595,000 Recommended, 2018..................................... 412,595,000 Comparison: Appropriation, 2017............................... +22,595,000 Budget estimate, 2018............................. -6,000,000 The Federal Salaries and Expenses account provides corporate planning and oversight for Defense Programs, Defense Nuclear Nonproliferation, and Naval Reactors, including the NNSA field offices in New Mexico, Nevada, and California. ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES Defense Environmental Cleanup Appropriation, 2017................................... $5,405,000,000 Budget estimate, 2018................................. 5,537,186,000 Recommended, 2018..................................... 5,405,000,000 Comparison: Appropriation, 2017............................... - - - Budget estimate, 2018............................. -132,186,000 The Defense Environmental Cleanup account provides funding for identifying and reducing risks and managing waste at sites where the nation carried out defense-related nuclear research and production activities that resulted in radioactive, hazardous, and mixed waste contamination requiring remediation, stabilization, or some other cleanup action. The Office of Environmental Management (EM) continues to request changes to the congressional budget structure without obtaining concurrence in advance from the Congress on its proposals, despite specific direction to the contrary in prior years. In addition, the budget request proposes large increases in administrative-type activities and cuts to site cleanup funds. The recommendation restores cuts proposed to cleanup activities at Hanford, Idaho, Los Alamos, and Oak Ridge and redistributes costs within site funding totals for site- specific safeguards and security activities. The Committee recommendation for safeguards and security within each site includes full funding amounts requested for site-specific cyber security needs. Additionally, Savannah River shall continue to receive safeguard and security funds through the NNSA and EM indirect cost pools, as in previous years. The recommendation does not include an increase requested for the DOE working capital fund and funding is provided up to the level of and in the budget lines provided for these costs in fiscal year 2017. Closure and Other Sites Administration includes funding for administration costs, including safeguards and security costs, of other EM cleanup sites that are traditionally accounted for within Defense Environmental Cleanup. Excess Facilities.--The budget request proposed a new program line to allow for disposition of excess facilities, but the request did not propose a list of the facilities and cost estimates. The recommendation includes funding above the budget request for individual EM sites to accelerate known demolition projects and initiate new transfers to EM, including $35,000,000 within Oak Ridge Nuclear Facility D&D to support the demolition of the Y-12 Biology Complex, $30,000,000 within NNSA Sites and Nevada Off-sites for demolition of the B280 Pool Type Reactor at Lawrence Livermore National Laboratory, and up to $10,000,000 above the budget request within the Idaho Site to support the demolition of the EBR-II Reactor Dome. Closure and Other Administration Costs.--The recommendation includes funding requested for administration of DOE closure sites and administration of safeguards and security activities, including cybersecurity, for the West Valley Demonstration Project and the gaseous diffusion uranium enrichment sites. Waste Treatment Plant (WTP).--To demonstrate cleanup progress while the Department resolves safety-related design issues of the WTP project, DOE is implementing an alternative direct feed approach for the project. However, the budget request provides no specific information regarding ultimate costs of the project or how the new project plans will meet new schedule milestones for direct feed, despite finalizing a new performance baseline to manage this scope. Rather, the budget request for construction activities is not transparent, appears to be set at an arbitrary amount, and is not reflective of actual project needs. The recommendation provides $643,000,000 under 18-D-16 Waste Treatment Plant LBL/Direct Feed Low Activity Waste to fully support planned baseline activities for direct feed, consistent with the funding plans of its recently completed performance baseline and $14,000,000 above the budget request. Other construction activities that support the Waste Treatment Plant project are provided separately, including funding for maintenance and design resolution of the High-Level Waste facility and the Pretreatment Facility and for construction of the Low Activity Waste Pretreatment System. The Department is directed to discontinue the practice of requesting an arbitrary $690,000,000 under activities called the Waste Treatment Plant (WTP) project and to report full project details that reflect project execution plans in future budget requests. Hanford Site Management.--Congress directed the establishment of the Office of River Protection site office and set a termination date for September 30, 2019. The Department is directed to provide to the Committees on Appropriations of both Houses of Congress a report on the impacts for reaching the legislative sunset date of the Office of River Protection that includes an assessment of whether the Department can carry out its commitments to clean up the Hanford Site under the Tri- party Agreement with a single site office and whether consolidating the two site offices could streamline management, enhance accountability, and eliminate duplicative expenses. Idaho Site.--Within available funds for Idaho cleanup and waste disposition, $5,000,000 is for advanced retrieval and disposition techniques for remote handled mixed low-level radioactive waste. Not later than 60 days after the enactment of this Act, the Department shall provide to the Committees on Appropriations of both Houses of Congress a report on the feasibility and benefits of expanding the use of the Advanced Mixed Waste Treatment Facility to serve as a national or regional transuranic waste processing center. Oak Ridge Reservation Project Accelerations.--The recommendation includes $52,300,000 to expedite plans to dispose of U233 at the Oak Ridge Reservation, $17,100,000 for construction of the Outfall 200 Mercury Treatment Facility, and $10,000,000 for construction of the On-site Waste Disposal Facility. Savannah River Site.--Within available funds for Site Risk Management, the recommendation includes $159,978,000 for environmental cleanup activities to support compliance milestones and $3,000,000 to support the disposition of spent fuel from the High Flux Isotope Reactor. None of the funds provided within the Savannah River Site may be used to assume costs previously charged to the NNSA via the site's indirect cost pools. Waste Isolation Pilot Plant (WIPP).--A recent report of the Office of Enterprise Assessments indicated that DOE performance metrics for roof bolting and other rehabilitation activities are not adequate to provide measures for safe, effective ground control. Additionally, large portions of the underground are no longer considered safe for entry and must be permanently closed due to ineffective ground control measures over the last two years. Because DOE planned to use these areas for waste disposal, new areas must be mined to provide disposal capacity and the costs of full recovery continue to rise. Not later than 60 days after the enactment of this Act, the Department shall provide to the Committees on Appropriations of both Houses of Congress a plan for maintaining the underground with clear performance metrics for roof bolting and other ground control rehabilitation activities, including estimates of the funding requirements to fully support the plan. Metrics should distinguish activities needed to close out existing panels with those needed for maintenance of active waste disposal pathways, secondary areas, and new mining activities. Program Support.--The Committee is concerned about the antiquated state of EM headquarters planning and budgeting systems to analyze EM's complex portfolio of projects. The Department is directed to update its strategic planning tools to utilize modern, dynamic software that permits real-time and strategic analysis of resource requirements, funding variances, regulatory requirements, and scope changes to better ensure taxpayers return on investments in the EM program. Technology Development.--Within funding for technology development and deployment, $4,000,000 is provided for the National Spent Nuclear Fuel Program to address issues related to storing, transporting, processing, and disposing of DOE- owned and managed spent nuclear fuel. The Committee encourages EM to conduct merit-based funding awards for technology development and to ensure the funds provided are competitively awarded and managed by DOE Headquarters to address long-term cleanup mission needs. Other Defense Activities Appropriation, 2017................................... $784,000,000 Budget estimate, 2018................................. 815,512,000 Recommended, 2018..................................... 825,000,000 Comparison: Appropriation, 2017............................... +41,000,000 Budget estimate, 2018............................. +9,488,000 The Other Defense Activities account provides funding for the Office of Environment, Health, Safety and Security; the Office of Independent Enterprise Assessments; the Office of Legacy Management; Specialized Security Activities; Defense Related Administrative Support; and the Office of Hearings and Appeals. Environment, Health, Safety and Security.--The recommendation includes no funding for processing security clearances of headquarters personnel that are not employees of the Office of Environment, Health, Safety and Security, consistent with congressional direction in the fiscal year 2017 Act. The Committee is concerned that the Office of Environment, Health, Safety and Security (EHSS) is funding assessments and technology development to upgrade security systems at non- defense facilities of the Strategic Petroleum Reserve and the Power Marketing Administrations. Funding within EHSS is duplicative of funds also provided for physical security in those program accounts, and the Department is directed to consolidate these costs within funds provided for physical security systems at program sites. Defense Nuclear Waste Disposal Appropriation, 2017................................... $- - - Budget estimate, 2018................................. 30,000,000 Recommended, 2018..................................... 30,000,000 Comparison: Appropriation, 2017............................... +30,000,000 Budget estimate, 2018............................. - - - The Defense Nuclear Waste Disposal appropriation was established by the Congress for activities related to the disposal of defense high-level waste from the Department's atomic energy defense activities in lieu of payment from the Department of Energy into the Nuclear Waste Fund. POWER MARKETING ADMINISTRATIONS Management of the federal power marketing functions was transferred from the Department of the Interior to the Department of Energy in the Department of Energy Organization Act of 1977 (Public Law 95-91). These functions include the power marketing activities authorized under section 5 of the Flood Control Act of 1944 and all other functions of the Bonneville Power Administration, the Southeastern Power Administration, the Southwestern Power Administration, and the power marketing functions of the Bureau of Reclamation that have been transferred to the Western Area Power Administration. All four power marketing administrations give preference in the sale of their power to publicly-owned and cooperatively- owned utilities. Operations of the Bonneville Power Administration are financed principally under the authority of the Federal Columbia River Transmission System Act (Public Law 93-454). Under this Act, the Bonneville Power Administration is authorized to use its revenues to finance the costs of its operations, maintenance, and capital construction, and to sell bonds to the Treasury if necessary to finance any additional capital program requirements. Beginning in fiscal year 2011, power revenues from the Southeastern, Southwestern, and Western Area Power Administrations, which were previously classified as mandatory offsetting receipts, were reclassified as discretionary offsetting collections to directly offset annual expenses. The capital expenses of Southwestern and Western Area Power Administrations are appropriated annually. Beginning this fiscal year, the Congressional Budget Office (CBO) changed its scoring of the power marketing administrations (PMAs). The change stemmed from information on execution of language regarding purchase power and wheeling expenses and offsetting collections included in this bill each year. To date, the PMAs have been extremely slow to provide additional financial information. To address the increased score in the short term, the recommendation reduces the maximum level for purchase power and wheeling below the budget request. The Committee directs the PMAs to provide all information requested by the Committee or CBO, without exception, in order to accurately reflect expenditures and resolve scoring issues appropriately. Bonneville Power Administration Fund The Bonneville Power Administration (BPA) is the Department of Energy's marketing agency for electric power in the Pacific Northwest. Bonneville provides electricity to a 300,000 square mile service area in the Columbia River drainage basin. Bonneville markets the power from federal hydropower projects in the Northwest, as well as power from non-federal generating facilities in the region, and exchanges and markets surplus power with Canada and California. The Committee encourages the Corps of Engineers and Bureau of Reclamation to work with the BPA on efforts to drive down costs and promote BPA's long-term competitiveness. Assuring BPA competitiveness is important not only for BPA's operation, but to ensure Treasury repayment and assist the Corps and Reclamation in meeting their core functions (including navigation, flood control, water supply, and irrigation). The Committee is pleased that the operating agencies have taken important short-term steps on cost control and encourages efforts to make long-term improvements. The Committee encourages the Corps and Bureau to work with BPA to optimize investment in the federal hydropower system, including prioritization of investments, effective project management approaches such as efficient procurement of equipment and services, and ensuring the cost effectiveness of any proposed higher capital spending levels for hydropower facilities. In addition, the Committee urges the operating agencies to strongly consider matters such as: (1) a more flexible workforce and business-oriented organization; (2) increased reliance on system automation as appropriate; (3) strategies to get labor costs stable or reduced long term; and (4) further review of costs of conducting the new environmental impact statement for Columbia River System Operations to determine what costs are truly incremental. Operation and Maintenance, Southeastern Power Administration Appropriation, 2017................................... $- - - Budget estimate, 2018................................. - - - Recommended, 2018..................................... - - - Comparison: Appropriation, 2017............................... - - - Budget estimate, 2018............................. - - - The Southeastern Power Administration (SEPA) markets hydroelectric power produced at 22 Corps Projects in 11 states in the southeast. Southeastern does not own or operate any transmission facilities, so it contracts to ``wheel'' its power using the existing transmission facilities of area utilities. Operation and Maintenance, Southwestern Power Administration Appropriation, 2017................................... $11,057,000 Budget estimate, 2018................................. 11,400,000 Recommended, 2018..................................... 11,400,000 Comparison: Appropriation, 2017............................... +343,000 Budget estimate, 2018............................. - - - The Southwestern Power Administration (SWPA) markets hydroelectric power produced at 24 Corps projects in the six- state area of Arkansas, Kansas, Louisiana, Missouri, Oklahoma, and Texas. SWPA operates and maintains 1,380 miles of transmission lines, along with supporting substations and communications sites. Construction, Rehabilitation, Operation and Maintenance, Western Area Power Administration Appropriation, 2017................................... $95,581,000 Budget estimate, 2018................................. 93,372,000 Recommended, 2018..................................... 93,372,000 Comparison: Appropriation, 2017............................... -2,209,000 Budget estimate, 2018............................. - - - The Western Area Power Administration is responsible for marketing the electric power generated by the Bureau of Reclamation, the Corps, and the International Boundary and Water Commission. Western also operates and maintains a system of transmission lines nearly 17,000 miles long. Western provides electricity to 15 western states over a service area of 1.3 million square miles. The Committee recommendation reduces the level for annual expenses by $35,410,000 below the budget request. This reduction reflects customer preference to fund the annual operation and maintenance program for the Parker-Davis and Intertie projects using Western's prepayment authority, rather than Western's net zero authority. Falcon and Amistad Operating and Maintenance Fund Appropriation, 2017................................... $232,000 Budget estimate, 2018................................. 228,000 Recommended, 2018..................................... 228,000 Comparison: Appropriation, 2017............................... -4,000 Budget estimate, 2018............................. - - - Falcon Dam and Amistad Dam are two international water projects located on the Rio Grande River between Texas and Mexico. Power generated by hydroelectric facilities at these two dams is sold to public utilities through the Western Area Power Administration. The Foreign Relations Authorization Act for Fiscal Years 1994 and 1995 created the Falcon and Amistad Operating and Maintenance Fund to defray the costs of operation, maintenance, and emergency activities. The Fund is administered by the Western Area Power Administration for use by the Commissioner of the U.S. Section of the International Boundary and Water Commission. The budget request includes a proposal for authority to accept contributed funds in fiscal year 2018 for use in fulfilling duties associated with the Falcon and Amistad Dams. This authority would be equivalent to the authority used throughout the Western Area Power Administration to secure alternative financing. The Committee includes this proposal. The Committee continues to hear concerns that additional infrastructure investments are necessary at these dams. Western is directed to coordinate with the International Boundary and Water Commission to determine a plan for addressing any needed improvements and brief the Committee not later than 90 days after the enactment of this Act on progress towards finalizing a plan. Federal Energy Regulatory Commission SALARIES AND EXPENSES Appropriation, 2017................................... $346,800,000 Budget estimate, 2018................................. 367,600,000 Recommended, 2018..................................... 367,600,000 Comparison: Appropriation, 2017............................... +20,800,000 Budget estimate, 2018............................. - - - REVENUES Appropriation, 2017................................... $-346,800,000 Budget estimate, 2018................................. -367,600,000 Recommended, 2018..................................... -367,600,000 Comparison: Appropriation, 2017............................... -20,800,000 Budget estimate, 2018............................. - - - The Committee recommendation for the Federal Energy Regulatory Commission (FERC) is $367,600,000, the same as the budget request. Revenues for FERC are established at a rate equal to the budget authority, resulting in a net appropriation of $0. The Committee directs FERC to analyze electricity transmission investment incentives in rate treatments to determine ways to encourage efficient investment for critical infrastructure security. FERC shall report this analysis to the Committees on Appropriations of both Houses of Congress not later than 180 days after the enactment of this Act. COMMITTEE RECOMMENDATION The Committee's detailed funding recommendations for programs in Title III are contained in the following table.
*GENERAL PROVISIONS--DEPARTMENT OF ENERGY (INCLUDING TRANSFER OF FUNDS) The bill includes a provision that prohibits the use of funds provided in this title to initiate requests for proposals, other solicitations or arrangements for new programs or activities that have not yet been approved and funded by the Congress; requires notification or a report for certain funding actions; prohibits funds to be used for certain multi-year ``Energy Programs'' activities without notification; prohibits the obligation or expenditure of funds provided in this title through a reprogramming of funds except in certain circumstances; and permits the transfer and merger of unexpended balances of prior appropriations with appropriation accounts established in this bill. The bill continues a provision that authorizes intelligence activities of the Department of Energy for purposes of section 504 of the National Security Act of 1947. The bill continues a provision that prohibits the use of funds in this title for capital construction of high hazard nuclear facilities, unless certain independent oversight is conducted. The bill continues a provision that prohibits the use of funds provided in this title to approve critical decision-2 or critical decision-3 for certain construction projects, unless a separate independent cost estimate has been developed for that critical decision. The bill continues a provision restricting certain activities in the Russian Federation. The bill includes a provision regarding authority to release refined petroleum product from the Strategic Petroleum Reserve (SPR). Instead of engaging the Congress on developing appropriate legislation for a regional refined petroleum product reserve, the previous Administration chose to establish the Northeast Gasoline Supply Reserve (NGSR) under the existing authorities of the SPR. As such, the NGSR is subject to national impact thresholds for releases, making it operationally ineffective as a regional product reserve. The Committee on Energy and Commerce of the House of Representatives is evaluating the proper configuration of the SPR in light of current circumstances. This evaluation will be informed, in part, by an assessment of the SPR being undertaken by the Government Accountability Office. While this work is ongoing, this bill includes temporary authority to ensure the operational effectiveness of the NGSR. The bill includes a provision regarding a drawdown and sale of crude oil from the Strategic Petroleum Reserve. The bill continues a provision regarding management of the Strategic Petroleum Reserve. The bill includes a provision limiting the amount of funds to be used for the working capital fund. TITLE IV--INDEPENDENT AGENCIES Appalachian Regional Commission Appropriation, 2017................................... $152,000,000 Budget estimate, 2018................................. 26,660,000 Recommended, 2018..................................... 130,000,000 Comparison: Appropriation, 2017............................... -22,000,000 Budget estimate, 2018............................. +103,340,000 The Appalachian Regional Commission (ARC) is a regional economic development agency established in 1965 by the Appalachian Regional Development Act (P.L. 89-4). It is composed of the governors of the 13 Appalachian States and a federal co-chair appointed by the President. Each year, the ARC provides funding for several hundred projects in the Appalachian Region in areas such as business development, education and job training, telecommunications, infrastructure, community development, housing, and transportation. To diversify and enhance regional business development, $10,000,000 is provided to continue the program of high-speed broadband deployment in distressed counties within the Central Appalachian region that have been most negatively impacted by the downturn in the coal industry. This funding shall be in addition to the 30 percent directed to distressed counties. Within available funds, the Committee directs $50,000,000 for activities in support of the POWER+ Plan. The ARC targets 50 percent of its funds to distressed counties or distressed areas in the Appalachian region. The Committee continues to believe this should be the primary focus of the ARC. The recommendation does not include funds to shut down the ARC. Defense Nuclear Facilities Safety Board SALARIES AND EXPENSES Appropriation, 2017................................... $30,872,000 Budget estimate, 2018................................. 30,600,000 Recommended, 2018..................................... 30,600,000 Comparison: Appropriation, 2017............................... -272,000 Budget estimate, 2018............................. - - - The Defense Nuclear Facilities Safety Board (DNFSB) was created by the fiscal year 1989 National Defense Authorization Act. The Board, composed of five members appointed by the President, provides advice and recommendations to the Secretary of Energy regarding public health and safety issues at the Department's defense nuclear facilities. The DNFSB is responsible for reviewing and evaluating the content and implementation of the standards relating to the design, construction, operation, and decommissioning of the Department of Energy's defense nuclear facilities. Delta Regional Authority SALARIES AND EXPENSES Appropriation, 2017................................... $25,000,000 Budget estimate, 2018................................. 2,500,000 Recommended, 2018..................................... 15,000,000 Comparison: Appropriation, 2017............................... -10,000,000 Budget estimate, 2018............................. +12,500,000 The Delta Regional Authority (DRA) is a federal-state partnership established by the Delta Regional Authority Act of 2000 (P.L. 106-554) that serves a 252-county/parish area in an eight-state region near the mouth of the Mississippi River. Led by a federal co-chair and the governors of each participating state, the DRA is designed to remedy severe and chronic economic distress by stimulating economic development and fostering partnerships that will have a positive impact on the region's economy. The DRA seeks to help local communities leverage other federal and state programs that are focused on basic infrastructure development, transportation improvements, business development, and job training services. Under federal law, at least 75 percent of appropriated funds must be invested in distressed counties and parishes, with 50 percent of the funds for transportation and basic infrastructure improvements. The recommendation does not include funds to shut down the DRA. Denali Commission Appropriation, 2017................................... $15,000,000 Budget estimate, 2018................................. 7,300,000 Recommended, 2018..................................... 11,000,000 Comparison: Appropriation, 2017............................... -4,000,000 Budget estimate, 2018............................. +3,700,000 The Denali Commission is a regional development agency established by the Denali Commission Act of 1998 (P.L. 105-277) to provide critical utilities, infrastructure, health services, and economic support throughout Alaska. To ensure that local communities have a stake in Commission-funded projects, local cost share requirements for construction and equipment have been established for both distressed and non-distressed communities. The recommendation does not include funds to shut down the Denali Commission. Northern Border Regional Commission Appropriation, 2017................................... $10,000,000 Budget estimate, 2018................................. 850,000 Recommended, 2018..................................... 5,000,000 Comparison: Appropriation, 2017............................... -5,000,000 Budget estimate, 2018............................. +4,150,000 The Food, Conservation, and Energy Act of 2008 (P.L.110- 234) authorized the establishment of the Northern Border Regional Commission as a federal-state partnership intended to address the economic development needs of distressed portions of the four-state region of Maine, New Hampshire, Vermont, and New York. The recommendation does not include funds to shut down the Northern Border Regional Commission. Southeast Crescent Regional Commission Appropriation, 2017................................... $250,000 Budget estimate, 2018................................. - - - Recommended, 2018..................................... 250,000 Comparison: Appropriation, 2017............................... - - - Budget estimate, 2018............................. +250,000 The Food, Conservation, and Energy Act of 2008 (P.L. 110- 234) authorized the establishment of the Southeast Crescent Regional Commission as a federal-state partnership intended to address the economic development needs of distressed portions of the seven-state region in the southeastern United States not already served by a regional development agency. Nuclear Regulatory Commission SALARIES AND EXPENSES Appropriation, 2017................................... $905,000,000 Budget estimate, 2018................................. 939,137,000 Recommended, 2018..................................... 939,137,000 Comparison: Appropriation, 2017............................... +34,137,000 Budget estimate, 2018............................. - - - REVENUES Appropriation, 2017................................... $-794,580,000 Budget estimate, 2018................................. -803,409,000 Recommended, 2018..................................... -779,829,000 Comparison: Appropriation, 2017............................... +14,751,000 Budget estimate, 2018............................. +23,580,000 NET APPROPRIATION Appropriation, 2017................................... $110,420,000 Budget estimate, 2018................................. 135,728,000 Recommended, 2018..................................... 159,308,000 Comparison: Appropriation, 2017............................... +48,888,000 Budget estimate, 2018............................. +23,580,000 The Committee recommendation for the Nuclear Regulatory Commission (NRC) provides the following amounts: (Dollars in thousands) ---------------------------------------------------------------------------------------------------------------- FY 2017 FY 2018 Account enacted request Cmte. rec. ---------------------------------------------------------------------------------------------------------------- Nuclear Reactor Safety.......................................... $462,300 $466,655 $466,655 Nuclear Materials and Waste Safety.............................. 113,700 113,145 113,145 Decommissioning and Low-Level Waste............................. 27,200 27,980 27,980 Integrated University Program................................... 15,000 - - - 15,000 Yucca licensing................................................. - - - 30,000 30,000 Corporate Support............................................... 309,800 301,357 301,357 ----------------------------------------------- TOTAL, Program Level........................................ 928,000 939,137 954,137 Savings and Carryover........................................... -23,000 - - - -15,000 ----------------------------------------------- TOTAL....................................................... 905,000 939,137 939,137 ---------------------------------------------------------------------------------------------------------------- The recommendation includes $15,000,000 in savings for fiscal year 2018 that was not included in the budget request. The Committee directs the Commission to apply these savings in a manner that continues to ensure the protection of public health and safety and maintains the effectiveness of the current inspection program. Within available funds, not more than $9,500,000 is included for salaries, travel, and other support costs for the Office of the Commission. These salaries and expenses shall include only salaries and benefit and travel costs, and not general and administrative and infrastructure costs. The Committee directs that these funds are to be jointly managed by the Commissioners, and the bill requires that the use and expenditure of these salaries and expenses shall only be by a majority vote of the Commission. The NRC shall continue to include a breakout and explanation of the Commission salaries and expenses in its annual budget requests. If the Commission wishes to change the composition of the funds requested for its salaries and expenses in future years, it must do so in an annual budget request or through a reprogramming. The recommendation directs $30,000,000 to continue adjudication of the Yucca Mountain license application. Integrated University Program.--The Committee recommendation includes $15,000,000 to provide financial support for the university education programs, as the Commission continues to be reliant on a pipeline of highly trained nuclear engineers and scientists and benefits substantially from this university program. Not less than $5,000,000 of this amount is to be used for grants to support research projects that do not align with programmatic missions, but are critical to maintaining the discipline of nuclear science and engineering. Project Aim.--The Committee commends the NRC for the progress made to date on the Project Aim initiative. The NRC's twin workforce goals under this initiative--of correctly sizing the agency staff while also increasing workforce agility--will enhance the NRC's ability to address emergent safety issues in a timely way. However, the dynamic environment of the nuclear industry will continue to challenge the NRC's ability to forecast needed competencies and staffing levels. To address this, the NRC has undertaken the Enhanced Strategic Workforce Planning initiative. While this effort is meritorious, the NRC acknowledges that this initiative will not incorporate the efficiency gains of process improvements already implemented under Project Aim and consequently could result in overestimates of needed FTEs. The NRC must continue to review the organizational structure of the agency to ensure that staff and resources are aligned to support estimated workload requirements and that the estimates themselves reflect recent efficiency gains. The NRC is directed to provide to the Committees on Appropriations of both Houses of Congress by February 5, 2018, a report on the actions taken to improve the fidelity of agency estimates of necessary FTE levels and to optimize the structure of the agency over the next five years, including a review of the size, function, and number of program offices and regional offices. Risk-Informed Activities.--The Committee notes that the Commission's existing policy statement on the use of probabilistic risk assessment (PRA) finds that the many potential applications of this risk tool, if implemented broadly in nuclear regulatory activities, ``would promote regulatory stability and efficiency'' and concludes that the use of probabilistic insights ``should be increased to the extent supported by the state-of-the-art.'' The Committee agrees with this policy and supports sustained progress by the NRC in continuing to apply risk analysis tools to identify areas where its regulations may be insufficiently protective and where they may be needlessly restrictive. Given the Commission's recent direction to agency staff reaffirming the Commission's interest in sustained progress in the implementation of this policy and directing a suite of follow- on actions, the Commission is directed to submit to the Committees on Appropriations of both Houses of Congress not later than 120 days after enactment of this Act a report that provides its plan for broadening the application of risk assessment tools across the agency's activities; for improving the realism of PRA information used in regulatory decision- making; for establishing a more risk-informed licensing, inspection, and oversight process; and for training its technical staff more thoroughly in the use of these approaches. Rulemaking.--The Commission needs to continue to aggressively monitor the rulemaking process and also ensure that the Committee receives accurate reports on rulemaking activities. The Commission shall list all rulemaking activities planned, to include their priority, schedule, and actions taken to adhere to the backfit rule, in the annual budget request and the semi-annual report to Congress on licensing and regulatory activities. Digital Instrumentation and Control.--The future of commercial nuclear power depends, in part, on the NRC's ability to keep pace with innovation and technological developments. The NRC has demonstrated its capacity to adapt to new technology and innovation in its decision to issue a construction license for a first-of-a-kind medical isotope production facility. In a similar vein, the NRC should endeavor to ensure that it establishes an efficient, reliable, and predictable licensing process for power reactors to transition from analog to digital instrumentation and control systems for safety-related applications. Subsequent License Renewal.--The Commission is directed to include in the fiscal year 2019 budget request the actions taken to be prepared to effectively and efficiently review any subsequent license renewal applications. Reporting Requirements.--The Committee directs the Commission to continue to provide quarterly reports on licensing goals and right-sizing commitments, as described in the explanatory statement for P.L. 114-113. OFFICE OF INSPECTOR GENERAL GROSS APPROPRIATION Appropriation, 2017................................... $12,129,000 Budget estimate, 2018................................. 12,859,000 Recommended, 2018..................................... 12,859,000 Comparison: Appropriation, 2017............................... +730 Budget estimate, 2018............................. - - - REVENUES Appropriation, 2017................................... $-10,044,000 Budget estimate, 2018................................. -10,555,000 Recommended, 2018..................................... -10,555,000 Comparison: Appropriation, 2017............................... -511 Budget estimate, 2018............................. - - - NET APPROPRIATION Appropriation, 2017................................... $2,085,000 Budget estimate, 2018................................. 2,304,000 Recommended, 2018..................................... 2,304,000 Comparison: Appropriation, 2017............................... +219 Budget estimate, 2018............................. - - - The Committee has included $1,131,000 within this appropriation for the Defense Nuclear Facilities Safety Board for Inspector General services from the Nuclear Regulatory Commission Inspector General. Nuclear Waste Technical Review Board SALARIES AND EXPENSES Appropriation, 2017................................... $3,600,000 Budget estimate, 2018................................. 3,600,000 Recommended, 2018..................................... 3,600,000 Comparison: Appropriation, 2017............................... - - - Budget estimate, 2018............................. - - - The Nuclear Waste Technical Review Board (NWTRB) was established by the 1987 amendments to the Nuclear Waste Policy Act of 1982 to provide independent technical oversight of the Department of Energy's nuclear waste disposal program. The Committee expects the NWTRB to continue its active engagement with the Department and the Nuclear Regulatory Commission on issues involving nuclear waste disposal. GENERAL PROVISIONS--INDEPENDENT AGENCIES The bill continues a provision requiring the Nuclear Regulatory Commission to fully comply with Congressional requests for information. The bill continues a provision regarding the circumstances in which the Nuclear Regulatory Commission may reprogram funds. TITLE V--GENERAL PROVISIONS The bill continues a provision that prohibits the use of funds provided in this Act to, in any way, directly or indirectly influence congressional action on any legislation or appropriation matters pending before the Congress, other than to communicate to Members of Congress as described in section 1913 of title 18, United States Code. The bill continues a provision consolidating the transfer authorities into and out of accounts funded by this Act. No additional transfer authority is implied or conveyed by this provision. For the purposes of this provision, the term ``transfer'' shall mean the shifting of all or part of the budget authority in one account to another. The bill continues a provision prohibiting funds in contravention of E.O. 12898 of February 11, 1994, regarding environmental justice. The bill includes a provision prohibiting funds in this Act from being used to maintain or establish computer networks unless such networks block the viewing, downloading, or exchange of pornography. The bill includes a provision prohibiting the use of funds to further implementation of components of the National Ocean Policy developed under E.O. 13547. The bill includes a provision prohibiting the use of funds for the removal of any federally owned or operated dam unless the removal was previously authorized by Congress. The bill continues a provision prohibiting funds in this Act from being used to close the Yucca Mountain license application process or for actions that would remove the possibility that Yucca Mountain might be an option in the future. The bill includes a provision regarding the spending reduction account. HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS The following items are included in accordance with various requirements of the Rules of the House of Representatives. Statement of General Performance Goals and Objectives Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House of Representatives, the following is a statement of general performance goals and objectives for which this measure authorizes funding: The Committee on Appropriations considers program performance, including a program's success in developing and attaining outcome-related goals and objectives, in developing funding recommendations. Transfer of Funds Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House of Representatives, the following is submitted describing the transfer of funds provided in the accompanying bill. TITLE I--CORPS OF ENGINEERS--CIVIL Under section 103, ``General Provisions, Corps of Engineers--Civil'', $5,400,000 under the heading ``Operation and Maintenance'' may be transferred to the Fish and Wildlife Service to mitigate for fisheries lost due to Corps projects. TITLE II--BUREAU OF RECLAMATION Under ``Water and Related Resources'', $67,693,000 is available for transfer to the Upper Colorado River Basin Fund and $5,551,000 is available for transfer to the Lower Colorado River Basin Development Fund. Such funds as may be necessary may be advanced to the Colorado River Dam Fund. The amounts of transfers may be increased or decreased within the overall appropriation under the heading. Under ``California Bay Delta Restoration'', such sums as may be necessary to carry out authorized purposes may be transferred to appropriate accounts of other participating federal agencies. TITLE III--DEPARTMENT OF ENERGY Under ``Atomic Energy Defense Activities--National Nuclear Security Administration--Naval Reactors'', $82,500,000 shall be transferred to ``Department of Energy--Energy Programs--Nuclear Energy'' for the Advanced Test Reactor. Under section 301, ``General Provisions--Department of Energy'', unexpended balances of prior appropriations provided for activities in this Act may be transferred to appropriation accounts for such activities established pursuant to this title. Balances so transferred may be merged with funds in the applicable established accounts and thereafter may be accounted for as one fund for the same time period as originally enacted. Disclosure of Earmarks and Congressionally Directed Spending Items Neither the bill nor the report contains any congressional earmarks, limited tax benefits, or limited tariff benefits as defined in clause 9 of rule XXI. Changes in the Application of Existing Law Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of the House of Representatives, the following statements are submitted describing the effect of provisions in the accompanying bill which directly or indirectly change the application of existing law. TITLE I--CORPS OF ENGINEERS Language has been included under Corps of Engineers, Investigations, providing for detailed studies and plans and specifications of projects prior to construction. Language has been included under Corps of Engineers, Investigations, providing for a limited number of new starts. Language has been included under Corps of Engineers, Construction, stating that funds can be used for the construction of river and harbor, flood and storm damage reduction, shore protection, aquatic ecosystem restoration, and related projects authorized by law, and for detailed studies and plans and specifications of such projects. Language has been included under Corps of Engineers, Construction, permitting the use of funds from the Inland Waterways Trust Fund and the Harbor Maintenance Trust Fund. Language has been included under Corps of Engineers, Construction, providing for a limited number of new starts. Language has been included under Corps of Engineers, Mississippi River and Tributaries, permitting the use of funds from the Harbor Maintenance Trust Fund. Language has been included under the Corps of Engineers, Operation and Maintenance, stating that funds can be used for: the operation, maintenance, and care of existing river and harbor, flood and storm damage reduction, aquatic ecosystem restoration, and related projects authorized by law; providing security for infrastructure owned or operated by the Corps, including administrative buildings and laboratories; maintaining authorized harbor channels provided by a State, municipality, or other public agency that serve essential navigation needs of general commerce; surveying and charting northern and northwestern lakes and connecting waters; clearing and straightening channels; and removing obstructions to navigation. Language has been included under Corps of Engineers, Operation and Maintenance, permitting the use of funds from the Harbor Maintenance Trust Fund; providing for the use of funds from a special account for resource protection, research, interpretation, and maintenance activities at outdoor recreation areas; and allowing use of funds to cover the cost of operation and maintenance of dredged material disposal facilities for which fees have been collected. Language has been included under Corps of Engineers, Operation and Maintenance, providing that one percent of the total amount of funds provided for each of the programs, projects, or activities funded under the Operation and Maintenance heading shall not be allocated to a field operating activity until the fourth quarter of the fiscal year and permitting the use of these funds for emergency activities as determined by the Chief of Engineers to be necessary and appropriate. Language has been included under Corps of Engineers, Expenses, regarding support of the Humphreys Engineer Support Center Activity, the Institute for Water Resources, the United States Army Engineer Research and Development Center, and the United States Army Corps of Engineers Finance Center. Language has been included under Corps of Engineers, Expenses, providing that funds are available for official reception and representation expenses. Language has been included under Corps of Engineers, Expenses, prohibiting the use of other funds in Title I of this Act for the activities funded in Expenses. Language has been included under Corps of Engineers, Expenses, permitting any Flood Control and Coastal Emergency appropriation to be used to fund the supervision and general administration of emergency operations, repairs, and other activities in response to any flood, hurricane or other natural disaster. Language has been included to provide for funding for the Office of the Assistant Secretary of the Army for Civil Works. Language has been included under Corps of Engineers, General Provisions, section 101, providing that none of the funds may be available for obligation or expenditure through a reprogramming of funds except in certain circumstances. Language has been included under Corps of Engineers, General Provisions, section 102, prohibiting the execution of any contract for a program, project or activity which commits funds in excess of the amount appropriated (to include funds reprogrammed under section 101) that remain unobligated. Language has been included under Corps of Engineers, General Provisions, section 103, providing for transfer authority to the Fish and Wildlife Service for mitigation for lost fisheries. Language has been included under Corps of Engineers, General Provisions, section 104, prohibiting certain dredged material disposal activities. Language has been included under Corps of Engineers, General Provisions, section 105, prohibiting any acquisition that is not consistent with a certain federal regulation. Language has been included under Corps of Engineers, General Provisions, section 106, prohibiting certain activities at a Corps of Engineers project. Language has been included under Corps of Engineers, General Provisions, section 107, prohibiting requirement of a permit for the discharge of dredged or fill material under the Federal Water Pollution Control Act for certain activities. Language has been included under Corps of Engineers, General Provisions, section 108, authorizing withdrawal of a rule related to the definition of waters under the jurisdiction of the Federal Water Pollution Control Act. Language has been included under Corps of Engineers, General Provisions, section 109 allowing the possession of firearms at water resources development projects under certain circumstances. TITLE II--DEPARTMENT OF THE INTERIOR Language has been included under Bureau of Reclamation, Water and Related Resources, providing that funds are available for fulfilling federal responsibilities to Native Americans and for grants to and cooperative agreements with State and local governments and Indian tribes. Language has been included under Bureau of Reclamation, Water and Related Resources, allowing fund transfers within the overall appropriation to the Upper Colorado River Basin Fund and the Lower Colorado River Basin Development Fund; providing that such sums as necessary may be advanced to the Colorado River Dam Fund; and, transfers may be increased or decreased within the overall appropriation. Language has been included under Bureau of Reclamation, Water and Related Resources, providing for funds to be derived from the Reclamation Fund or the special fee account established by 16 U.S.C. 6806; that funds contributed under 43 U.S.C. 395 by non-federal entities shall be available for expenditure; and that funds advanced under 43 U.S.C. 397a are to be credited to the Water and Related Resources account and available for expenditure. Language has been included under Bureau of Reclamation, Water and Related Resources, providing that funds may be used for high priority projects carried out by the Youth Conservation Corps, as authorized by 16 U.S.C. 1706. Language has been included under Bureau of Reclamation, Central Valley Project Restoration Fund, directing the Bureau of Reclamation to assess and collect the full amount of additional mitigation and restoration payments authorized by section 3407(d) of Public Law 102-575. Language has been included under Bureau of Reclamation, Central Valley Project Restoration Fund, providing that none of the funds under the heading may be used for the acquisition or lease of water for in-stream purposes if the water is already committed to in-stream purposes by a court order adopted by consent or decree. Language has been included under Bureau of Reclamation, California Bay-Delta Restoration, permitting the transfer of funds to appropriate accounts of other participating federal agencies to carry out authorized programs; allowing funds made available under this heading to be used for the federal share of the costs of the CALFED Program management; and requiring that CALFED implementation be carried out with clear performance measures demonstrating concurrent progress in achieving the goals and objectives of the program. Language has been included under Bureau of Reclamation, Policy and Administration, providing that funds are to be derived from the Reclamation Fund and prohibiting the use of any other appropriation in the Act for activities budgeted as policy and administration expenses. Language has been included under Bureau of Reclamation, Administrative Provision, providing for the purchase of motor vehicles for replacement. Language has been included under General Provisions, Department of the Interior, section 201, providing that none of the funds may be available for obligation or expenditure through a reprogramming of funds except in certain circumstances. Language has been included under General Provisions, Department of the Interior, section 202, regarding the San Luis Unit and the Kesterson Reservoir in California. Language has been included under General Provisions, Department of the Interior, section 203, prohibiting funds to implement the San Joaquin River Restoration program. TITLE III--DEPARTMENT OF ENERGY Language has been included under Energy Efficiency and Renewable Energy for the purchase, construction, and acquisition of plant and capital equipment. Language has been included under Electricity Delivery and Energy Reliability for the purchase, construction, and acquisition of plant and capital equipment. Language has been included under Nuclear Energy for the purchase, construction, and acquisition of plant and capital equipment. Language has been included under Fossil Energy Research and Development for the acquisition of interest, including defeasible and equitable interest in any real property or any facility or for plant or facility acquisition or expansion, and for conducting inquires, technological investigations, and research concerning the extraction, processing, use and disposal of mineral substances without objectionable social and environmental costs under 30 U.S.C. 3, 1602 and 1603. Language has been included under the Naval Petroleum and Oil Shale Reserves, permitting the use of unobligated balances. Language has been included under the Strategic Petroleum Reserve, directing the Secretary of Energy to draw down and sell crude oil from the Strategic Petroleum and providing that the proceeds be deposited in the Energy Security and Infrastructure Modernization Fund for use in carrying out the Life Extension II project. Language has been included under Science providing for the purchase, construction, and acquisition of plant and capital equipment; and for the purchase of motor vehicles. Language has been included under Nuclear Waste Disposal for the acquisition of real property or facility construction or expansion. Language has been included under Innovative Technology Loan Guarantee Program crediting fees collected pursuant to section 1702(h) of the Energy Policy Act of 2005 as offsetting collections to this account and making fees collected under section 1702(h) in excess of the appropriated amount unavailable for expenditure until appropriated. Language has been included under Innovative Technology Loan Guarantee Program prohibiting the subordination of certain interests. Language has been included under Innovative Technology Loan Guarantee Program rescinding subsidy amountsfor the cost of loan guarantees. Language has been included under Innovative Technology Loan Guarantee Program cancelling authority for commitments to guarantee loans, excluding commitments made by October 1, 2017. Language has been included under Departmental Administration providing for the hire of passenger vehicles and for official reception and representation expenses. Language has been included under Departmental Administration providing, notwithstanding the provisions of the Anti-Deficiency Act, such additional amounts as necessary to cover increases in the estimated amount of cost of work for others, as long as such increases are offset by revenue increases of the same or greater amounts. Language has been included under Departmental Administration, notwithstanding 31 U.S.C. 3302, and consistent with the authorization in Public Law 95-238, to permit the Department of Energy to use revenues to offset appropriations. The appropriations language for this account reflects the total estimated program funding to be reduced as revenues are received. Language has been included under Weapons Activities for the purchase, construction, and acquisition of plant and capital equipment; and for the purchase of motor vehicles. Language has been included under Defense Nuclear Nonproliferation for the purchase, construction, and acquisition of plant and capital equipment and other incidental expenses. Language has been included under Defense Nuclear Nonproliferation restricting the use of funds provided for a specific project. Language has been included under Naval Reactors for the purchase, construction, and acquisition of plant and capital equipment, facilities, and facility expansion. Language has been included under Naval Reactors transferring certain funds to Nuclear Energy. Language has been included under Federal Salaries and Expenses providing funding for official reception and representation expenses. Language has been included under Defense Environmental Cleanup for the purchase, construction, and acquisition of plant and capital equipment; and for the purchase of motor vehicles. Language has been included under Other Defense Activities for the purchase, construction, and acquisition of plant and capital equipment. Language has been included under Defense Nuclear Waste Disposal for the acquisition of real property or facility construction or expansion. Language has been included under Bonneville Power Administration Fund providing funding for official reception and representation expenses and precluding any new direct loan obligations. Language has been included under Southeastern Power Administration providing funds for official reception and representation expenses. Language has been included under Southeastern Power Administration providing that, notwithstanding 31 U.S.C. 3302 and 16 U.S.C. 825s, amounts collected from the sale of power and related services shall be credited to the account as discretionary offsetting collections and remain available until expended for the sole purpose of funding the annual expenses of the Southeastern Power Administration; amounts collected to recover purchase power and wheeling expenses shall be credited to the account as offsetting collections and remain available until expended for the sole purpose of making purchase power and wheeling expenditures. Language has been included under Southwestern Power Administration providing funds for official reception and representation expenses. Language has been included under Southwestern Power Administration providing that, notwithstanding 31 U.S.C. 3302 and 16 U.S.C. 825s, amounts collected from the sale of power and related services shall be credited to the account as discretionary offsetting collections and remain available until expended for the sole purpose of funding the annual expenses of the Southwestern Power Administration; amounts collected to recover purchase power and wheeling expenses shall be credited to the account as offsetting collections and remain available until expended for the sole purpose of making purchase power and wheeling expenditures. Language has been included under Construction, Rehabilitation, Operation and Maintenance, Western Area Power Administration, providing funds for official reception and representation expenses. Language has been included under Construction, Rehabilitation, Operation and Maintenance, Western Area Power Administration providing that, notwithstanding 31 U.S.C. 3302,16 U.S.C. 825s, and 43 U.S.C. 392a, amounts collected from the sale of power and related services shall be credited to the account as discretionary offsetting collections and remain available until expended for the sole purpose of funding the annual expenses of the Western Area Power Administration; amounts collected to recover purchase power and wheeling expenses shall be credited to the account as offsetting collections and remain available until expended for the sole purpose of making purchase power and wheeling expenditures. Language has been included under Falcon and Amistad Operating and Maintenance Fund providing that, notwithstanding 68 Stat. 255 and 31 U.S.C. 3302, amounts collected from the sale of power and related services shall be credited to the account as discretionary offsetting collections and remain available until expended for the sole purpose of funding the annual expenses of the hydroelectric facilities of those dams and associated Western Area Power Administration activities. Language has been included under Falcon and Amistad Operating and Maintenance Fund providing that the Western Area Power Administration may accept a limited amount of contributions from the United States power customers of the Falcon and Amistad Dams for use by the Commissioner of the United States Section of the International Boundary and Water Commission for operating and maintenance of hydroelectric facilities. Language has been included under Federal Energy Regulatory Commission to permit the hire of passenger motor vehicles, to provide official reception and representation expenses, and to permit the use of revenues collected to reduce the appropriation as revenues are received. Language has been included under Department of Energy, General Provisions, section 301, prohibiting the use of funds to prepare or initiate requests for proposals or other solicitations or arrangements for programs that have not yet been fully funded by the Congress; requiring notification and reporting requirements for certain funding awards; limiting the use of multi-year funding mechanisms; providing that none of the funds may be available for obligation or expenditure through a reprogramming of funds except in certain circumstances; and providing that unexpended balances of prior appropriations may be transferred and merged with new appropriation accounts established in this Act. Language has been included under Department of Energy, General Provisions, section 302, providing that funds for intelligence activities are deemed to be specifically authorized for purposes of section 504 of the National Security Act of 1947 during fiscal year 2018 until enactment of the Intelligence Authorization Act for fiscal year 2018. Language has been included under Department of Energy, General Provisions, section 303, prohibiting the use of funds for capital construction of high hazard nuclear facilities unless certain independent oversight is conducted. Language has been included under Department of Energy, General Provisions, section 304, prohibiting the use of funds to approve critical decision-2 or critical decision-3 for certain construction projects, unless a separate independent cost estimate has been developed for that critical decision. Language has been included under Department of Energy, General Provisions, section 305, prohibiting nonproliferation activities in the Russian Federation until certain reporting requirements are met. Language has been included under Department of Energy, General Provisions, section 306, authorizing the Secretary of Energy to draw down and sell refined petroleum product from the Strategic Petroleum Reserve under certain circumstances. Language has been included under Department of Energy, General Provisions, section 307, directing the Secretary of Energy to draw down and sell additional crude oil from the Strategic Petroleum Reserve and providing that the proceeds of a sale be deposited in the SPR Petroleum Account for use for the costs of previously authorized sales of crude oil. Language has been included under Department of Energy, General Provisions, section 308, limiting the authority of the Secretary of Energy to establish regional petroleum product reserves. Language has been included under Department of Energy, General Provisions, section 309, limiting the amount of funds that may be transferred to the working capital fund. TITLE IV--INDEPENDENT AGENCIES Language has been included under Appalachian Regional Commission providing for the hire of passenger vehicles and services authorized by 5 U.S.C. 3109. Language has been included under Delta Regional Authority allowing the expenditure of funds as authorized by the Delta Regional Authority Act without regard to section 382C(b)(2), 382F(d), 382M and 382N of said Act. Language has been included under Denali Commission allowing the expenditure of funds notwithstanding section 306(g) of the Denali Commission Act of 1998, and providing for cost share requirements for Commission-funded construction projects in distressed and non-distressed communities, as defined by section 307 of the Denali Commission Act of 1998 (Division C, Title III, Public Law 105-277), and an amount not to exceed 50 percent for non-distressed communities. Language has been included under Denali Commission allowing funding to be available for payment of a non-federal share for certain programs. Language has been included under Northern Border Regional Commission for expenditure as authorized by subtitle V of title 40, United States Code, without regard to section 15751(b). Language has been included under Nuclear Regulatory Commission, Salaries and Expenses that provides for salaries and other support costs for the Office of the Commission, to be controlled by majority vote of the Commission. Language has been included under Nuclear Regulatory Commission, Salaries and Expenses that provides for official representation expenses and permits the use of revenues from licensing fees, inspections services, and other services for salaries and expenses to reduce the appropriation as revenues are received. Funding is provided to support university research and development, and for a Nuclear Science and Engineering Grant Program. Language has been included under the Nuclear Regulatory Commission providing funds that are not derived from fee revenues. Language has been included under Office of Inspector General that provides for the use of revenues from licensing fees, inspections services, and other services for salaries and expenses, notwithstanding section 3302 of title 31, United States Code, to reduce the appropriation as revenues are received. Language has been included under Independent Agencies, General Provisions, section 401, requiring the NRC to comply with certain procedures when responding to Congressional requests for information. Language has been included under Independent Agencies, General Provision, section 402, providing that none of the funds may be available for obligation or expenditure through a reprogramming of funds except in certain circumstances. TITLE V--GENERAL PROVISIONS Language has been included under General Provisions, section 501, prohibiting the use of funds in this Act to influence congressional action on any legislation or appropriation matters pending before the Congress. Language has been included under General Provisions, section 502, prohibiting the transfer of funds except pursuant to a transfer made by, or transfer authority provided in this or any other appropriations Act, or certain other authorities, and requiring a report. Language has been included under General Provisions, section 503, prohibiting funds in contravention of Executive Order No. 12898 of February 11, 1994, regarding environmental justice. Language has been included under General Provisions, section 504, prohibiting funds from being used to maintain or establish computer networks unless such networks block the viewing, downloading, or exchange of pornography. Language has been included under General Provisions, section 505, prohibiting the use of funds to further implementation of components of the National Ocean Policy developed under Executive Order 13547. Language has been included under General Provisions, section 506, prohibiting the use of funds for the removal of any federally-owned or operated dam unless the removal has been previously authorized by Congress. Language has been included under General Provisions, section 507, prohibiting funds in this Act from being used to close the Yucca Mountain license application process, or for actions that would remove the possibility that Yucca Mountain might be an option in the future. Language has been included under General Provisions, section 508, setting at $0 the amount that the proposed new budget authority exceeds the allocation made by the Committee on Appropriations under section 302(b) of the Congressional Budget Act of 1974. Program Duplication No provision of this bill establishes or reauthorizes a program of the Federal Government known to be duplicative of another Federal program, a program that was included in any report from the Government Accountability Office to Congress pursuant to section 21 of Public Law 111-139, or a program related to a program identified in the most recent Catalog of Federal Domestic Assistance. Directed Rule Making The bill does not direct any rule making. Compliance with Rule XIII, Cl. 3(e) (Ramseyer Rule) In compliance with clause 3(e) of rule XIII of the Rules of the House of Representatives, the Committee notes that the accompanying bill does not propose to repeal or amend a statute or part thereof. Appropriations Not Authorized by Law Pursuant to clause 3(f) of rule XIII of the Rules of the House of Representatives, the following table lists the appropriations in the accompanying bill which are not authorized:
Rescissions Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House of Representatives, the following table is submitted describing the rescissions recommended in the accompanying bill: Amount Department or Activity Department of Energy: Title 17 Innovative Technology Loan Guarantee Program.............................. 411,000,000 Department of Energy: Defense Nuclear Nonproliferation.. 49,000,000 Comparison with the Budget Resolution Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House of Representatives and section 308(a)(1)(A) of the Congressional Budget Act of 1974, the following table compares the levels of new budget authority provided in the bill with the appropriate allocation under section 302(b) of the Budget Act. [In millions of dollars] ---------------------------------------------------------------------------------------------------------------- 302(b) Allocation This Bill --------------------------------------------------------------- Budget Budget Authority Outlays Authority Outlays ---------------------------------------------------------------------------------------------------------------- Mandatory....................................... .............. .............. 0 \1\0 Discretionary................................... 37,562 38,934 37,562 38,931 ---------------------------------------------------------------------------------------------------------------- \1\Includes outlays from prior-year budget authority. Five-Year Outlay Projections Pursuant to section 308(a)(1)(B) of the Congressional Budget Act of 1974, the following table contains five-year projections prepared by the Congressional Budget Office of outlays associated with the budget authority provided in the accompanying bill: [In millions of dollars] ------------------------------------------------------------------------ ------------------------------------------------------------------------ Projection of outlays associated with the recommendation: 2018.............................................. \2\22,847 2019.............................................. 10,856 2020.............................................. 3,413 2021.............................................. 518 2022 and future years............................. 230 ------------------------------------------------------------------------ \2\Excludes outlays from prior-year budget authority. Assistance to State and Local Governments Pursuant to section 308(a)(1)(C) of the Congressional Budget Act of 1974, the amount of financial assistance to State and local governments is as follows: [In millions of dollars] ------------------------------------------------------------------------ Budget Authority Outlays ------------------------------------------------------------------------ Financial assistance to State and local 143 \2\0 governments for 2018................... ------------------------------------------------------------------------ \2\Excludes outlays from prior-year budget authority.
ADDITIONAL VIEWS OF NITA LOWEY AND MARCY KAPTUR The Energy and Water Development bill funds critical energy and water resource projects, supports science activities necessary for American competitiveness and contributes to our national defense through vital weapons, naval reactor research, and nonproliferation funding. All of which are priorities that should unite rather than divide us. While Chairman Simpson has worked to incorporate the interests of Members from both parties where possible, much of the funding in this bill is a reflection of priorities from the Majority's side of the aisle. Beyond the funding decisions, the Majority fortifies the partisan cast of the bill by including ideological riders on the Clean Water Act, guns on Corps lands and National Ocean Policy. We should not have to remind our Majority colleagues that similar provisions have imperiled enactment of this bill in the past. The Republican Majorities in the House and Senate have proven they cannot govern responsibly. With full control of the Executive and Legislative branches, nearly three months beyond the April 15 deadline, Congress has not even adopted a budget. It is a willfully blind and irresponsible approach to funding the government. The Committee began our work with a piecemeal approach to the 302(b) allocations that failed to provide the American people with a full budget blueprint for federal spending in fiscal year 2018. Now we know why. The Majority is choosing to consider bills that will breach the defense spending cap included in the Budget Control Act by $72,476,000,000 and further cut nondefense spending by nearly five billion dollars. Democrats and Republicans in Congress must work together to raise the budget caps in the Budget Control Act, as we have done every year under sequestration. Our commitment to men and women in uniform, senior citizens, and working men and women, and mothers and fathers raising the next generation cannot be met under the current budget caps. The subcommittee's allocation is $37,568,000,000. This allocation is $3,246,861,000 above the Administration's budget request and $209,000,000 below the 2017 level. After adjusting for scorekeeping, the defense allocation is $1,086,000,000 above 2017, while the non-defense allocation is $1,295,000,000 below 2017. Funding for the Corps of Engineers is a bright spot within the bill, $1,155,764,000 above the President's inadequate request, ensuring that some ongoing projects will continue. The bill provides $6,157,764,000 for the Army Corps of Engineers and $1,340,000,000 for projects funded from the Harbor Maintenance Trust Fund, $40,000,000 above 2017. This funding will allow preventive and proactive investments necessary for the economy and the safety of American citizens. The funding above the request will also allow investments in the nation's ports and waterways, which are critical to ensuring that American-made goods can move to market, both domestically and abroad. We firmly believe that our underinvestment in infrastructure continues to hamper economic gains and prolongs the underemployment plaguing our middle class. While this bill ensures increased investment beyond that included in the budget request, we should be doing even more to build infrastructure and create jobs. Federal support of water resource projects creates construction jobs and indirect economic benefits that encourage local businesses and individuals to embrace risk and make critical investments in their communities. The inclusion of six new study starts and two new construction projects will allow incremental progress in addressing the $75 billion in projects awaiting funding. We appreciate the Chairman's support provided for Science in the bill. This account is critical to the competitiveness of our nation. With a return on investment of 20 to 67 percent, publicly funded research grows our economy and helps the United States maintain its position as the global leader in innovation. If the U.S. is to truly achieve energy independence and tackle the challenges posed by climate change, the federal government must continue to prioritize investments in cutting- edge research at our national laboratories and universities along with supporting advancements in high-potential, high- impact energy technologies that are too early for private- sector investment. On the other hand, the bill's support for the Science account is offset by the early termination of ARPA-E, beyond even that of the Administration's request. ARPA-E has used approximately $1,500,000,000 to fund more than 580 projects through 36 focused programs and three open funding solicitations. Since 2015, 74 of these projects have attracted more than $1,800,000,000 in private sector follow-on funding. APRA-E projects have generated 218 patents, and 56 companies have been formed as a result of this funding. This highly innovative and effective program enjoys bipartisan support both on and off Capitol Hill, including from the U.S. Chamber of Commerce and the heads of Southern Company, PG&E, and DuPont, among others. The early termination of this program does a tremendous disservice to U.S. leadership in energy technologies necessary for our economic and energy security. With regard to the applied energy programs at the Department of Energy, investments in energy technology programs are once again skewed heavily toward nuclear and fossil fuels. We must provide for critical research and development for the nuclear and fossil energy sectors to increase efficiency and reduce emissions of those sources that currently provide the bulk of our electricity generation. However, continued and sustained research and development programs in renewable energy cannot be the price of this support. The advances in renewable energy are not the drumbeats of some distant clean energy future. That future is now, and the rest of the world is ready to lay siege to our technologies if we do not continue to innovate. An investment in clean energy is an investment in American jobs: 288,000 people work in the auto industry supply chain making parts that make vehicles cleaner and more fuel efficient; 360,000 people work in the solar industry; and, the single fastest growing job in America is Wind Turbine Technician. While our President is choosing to ignore the realities of human activity on the climate, the rest of the world has roundly rebuked him. Just last week, the other 19 leaders in the G-20 confirmed their intention to push towards a cleaner energy future. Meanwhile, Volvo announced that after 2019, it will design no new models of conventional internal combustion powered vehicles, and France announced that it would ban the sale of diesel and gas vehicles by 2040--joining India who promised to make the switch by 2030. The fact that countries as populous as India and as developed as France can make such pledges is a tribute to the innovations that have been driven by the Department of Energy. The Department has spearheaded the research to make all- electric cars a reality, from the materials science to manufacture lightweight vehicles, to the chemical engineering necessary for improved batteries, to the electrochemical science which is allowing charging to happen faster and cheaper. Finally, it was a loan from DOE which helped Tesla jump from a small company into the second most highly valued car company that will soon bring all-electric vehicles to the mainstream. In an era when Wall Street chases quarterly profits and ever-improving earnings reports, we owe it to our constituents to play the long game--making investments that may take decades to pay off. More than any other, the energy sector needs government support right up until it becomes commercially viable. For decades, American presidents have made statements targeting energy independence, but this year, that target is finally in sight. The Energy Information Administration's recent report expects the U.S. to be a net energy exporter by 2026. The Department of Energy deserves great credit for bringing us to this point. The next revolution will be the clean energy revolution, but if we do not provide continued and consistent support to these nascent technologies, we will be left behind. The bill provides $10,239,344,000, a massive 11 percent increase over the FY 2017 appropriation, for the National Nuclear Security Administration (NNSA), even though NNSA continues to be plagued by staggering cost overruns and schedule delays. While we understand the need to modernize a complex built substantially in the 1950s, we continue to question whether the organization has the necessary tools and processes to continue to manage large increases in these activities year after year. The agency projects more than $300,000,000,000 in spending on nuclear weapons programs over the next 25 years. Notably, NNSA says it may need $2,900,000,000,000 more in funding between 2022 and 2026 to implement its weapons activities than the agency is projecting to request. During this period, the NNSA is planning to be in the midst of simultaneously executing four to five major warhead life extension programs and several major construction projects. While the Chairman continues strong oversight of the NNSA, it is long past time to examine the assumptions underlying the modernization program to determine if it is well justified, affordable and the absolute minimum necessary to meet the country's military requirements. Nonproliferation programs are our first line of defense and the most cost-effective way to achieve the urgent goal of securing and reducing the amount of vulnerable bomb-grade material. The bill includes $1,776,461,000 for these critical programs, $106,411,000 below 2017. Increasing worldwide terror threats are proof that we should be increasing our expenditures on proliferation risks. In March 2015, the Secretary of Energy Advisory Board recommended that the Department expand its nonproliferation efforts and augment existing funding, and expressed concern about the recent trend of falling budgets for the core non-proliferation efforts. This bill continues the downward spiral of funding to secure material that could be used against a civilian population while providing a massive increase to the weapons account. The inclusion of controversial riders is an unnecessary diversion from our primary responsibility--ensuring that taxpayer funds are invested wisely in Federal programs that will contribute to the economic vitality of our nation. Three of the water riders taken together risk protection of the world's most precious resource: fresh water. The first Clean Water Act provision authorizes the Corps of Engineers and the Environmental Protection Agency to withdraw the Waters of the United States rule without regard to any provision of statute or regulation that establishes a requirement for such withdrawal. This provision would ensure key process steps required by the Administrative Procedures Act and the Clean Water Act would be bypassed. The bill also includes provisions regarding agricultural exemptions to the Clean Water Act and a prohibition of activities related to the National Ocean Policy. The inclusion of the rider allowing guns to be carried on all Corps of Engineers lands injects into the bill an unnecessarily partisan topic that is unwarranted. We disagree with the notion that reasonable limits on where guns can be carried are an infringement upon the Second Amendment. We see no need to contribute to an environment where guns are commonplace in recreational areas where families are trying to escape the pressures of everyday life. The cuts proposed in this bill cede the future to our competitors who are coopting the energy technologies that the American people paid us to protect. While we should be looking to build on our significant progress towards energy independence under the previous Administration, the cuts to clean energy programs represent a serious blow to advancing the nation's position globally. Ultimately, we appreciate the hard work of Chairman Simpson. The allocation provided to Energy and Water required significant cuts, and, while we would have made very different decisions, we recognize the challenge. While the Chairman largely limited the damage, the damage was principally to Democratic priorities. We look forward to the day when allocations across all Subcommittees are returned to acceptable levels and to working with the Chairman and the members of this Committee to advance the process. However, we cannot support this bill given the funding decisions and ideological riders currently included in the Committee product. Nita Lowey. Marcy Kaptur.