S. HRG. 107–901 Senate Hearings Before the Committee on Appropriations Energy and Water Development Appropriations Fiscal Year 2003 107th CONGRESS, SECOND SESSION H.R. 5431/S. 2784 DEPARTMENT OF ENERGY DEPARTMENT OF THE INTERIOR NONDEPARTMENTAL WITNESSES Energy and Water Development Appropriations, 2003 (H.R. 5431/S. 2784) S. HRG. 107–901 ENERGY AND WATER DEVELOPMENT APPROPRIATIONS FOR FISCAL YEAR 2003 HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS UNITED STATES SENATE ONE HUNDRED SEVENTH CONGRESS SECOND SESSION ON H.R. 5431/S. 2784 AN ACT MAKING APPROPRIATIONS FOR ENERGY AND WATER DEVELOP- MENT FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2003, AND FOR OTHER PURPOSES Department of Energy Department of the Interior Nondepartmental witnesses Printed for the use of the Committee on Appropriations ( Available via the World Wide Web: http://www.access.gpo.gov/congress/senate U.S. GOVERNMENT PRINTING OFFICE 78–471 PDF WASHINGTON : 2003 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 COMMITTEE ON APPROPRIATIONS ROBERT C. BYRD, West Virginia, Chairman DANIEL K. INOUYE, Hawaii TED STEVENS, Alaska ERNEST F. HOLLINGS, South Carolina THAD COCHRAN, Mississippi PATRICK J. LEAHY, Vermont ARLEN SPECTER, Pennsylvania TOM HARKIN, Iowa PETE V. DOMENICI, New Mexico BARBARA A. MIKULSKI, Maryland CHRISTOPHER S. BOND, Missouri HARRY REID, Nevada MITCH MCCONNELL, Kentucky HERB KOHL, Wisconsin CONRAD BURNS, Montana PATTY MURRAY, Washington RICHARD C. SHELBY, Alabama BYRON L. DORGAN, North Dakota JUDD GREGG, New Hampshire DIANNE FEINSTEIN, California ROBERT F. BENNETT, Utah RICHARD J. DURBIN, Illinois BEN NIGHTHORSE CAMPBELL, Colorado TIM JOHNSON, South Dakota LARRY CRAIG, Idaho MARY L. LANDRIEU, Louisiana KAY BAILEY HUTCHISON, Texas JACK REED, Rhode Island MIKE DEWINE, Ohio TERRENCE E. SAUVAIN, Staff Director CHARLES KIEFFER, Deputy Staff Director STEVEN J. CORTESE, Minority Staff Director LISA SUTHERLAND, Minority Deputy Staff Director SUBCOMMITTEE ON ENERGY AND WATER DEVELOPMENT HARRY REID, Nevada, Chairman ROBERT C. BYRD, West Virginia PETE V. DOMENICI, New Mexico ERNEST F. HOLLINGS, South Carolina THAD COCHRAN, Mississippi PATTY MURRAY, Washington MITCH MCCONNELL, Kentucky BYRON L. DORGAN, North Dakota ROBERT F. BENNETT, Utah DIANNE FEINSTEIN, California CONRAD BURNS, Montana TOM HARKIN, Iowa LARRY CRAIG, Idaho TED STEVENS, Alaska (ex officio) Professional Staff DREW WILLISON CLAY SELL (Minority) TAMMY PERRIN (Minority) Administrative Support NANCY OLKEWICZ LASHAWNDA SMITH (Minority) (II) CONTENTS FRIDAY, MARCH 8, 2002 Page Department of the Interior ..................................................................................... 1 FRIDAY, MARCH 15, 2002 Department of Energy ............................................................................................. 49 MONDAY, MARCH 18, 2002 Department of Energy ............................................................................................. 103 THURSDAY, APRIL 18, 2002 Department of Energy ............................................................................................. 153 NONDEPARTMENTAL WITNESSES Energy programs ..................................................................................................... 211 Water programs ....................................................................................................... 237 (III) ENERGY AND WATER DEVELOPMENT APPROPRIATIONS FOR FISCAL YEAR 2003 FRIDAY, MARCH 8, 2002 U.S. SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, DC. The subcommittee met at 10:12 a.m., in room SD–138, Dirksen Senate Office Building, Hon. Harry Reid (chairman) presiding. Present: Senators Reid, Domenici, Bennett, and Burns. DEPARTMENT OF THE INTERIOR STATEMENT OF BENNETT W. RALEY, ASSISTANT SECRETARY FOR WATER AND SCIENCE ACCOMPANIED BY: JOHN W. KEYS, III, COMMISSIONER, BUREAU OF RECLAMATION J. RONALD JOHNSTON, PROGRAM DIRECTOR, CENTRAL UTAH PROJECT COMPLETION ACT ROBERT WOLF, DIRECTOR, PROGRAM AND BUDGET, BUREAU OF RECLAMATION PAM HAZE, DEPUTY DIRECTOR OF BUDGET, DEPARTMENT OF THE INTERIOR OPENING STATEMENT OF SENATOR PETE V. DOMENICI Senator DOMENICI. The hearing will please come to order. Senator Reid is tied up for a while. He will probably be by short- ly, but he indicated to me just now that he would like to get start- ed, so I think I am going to do that. First, let me thank the witnesses for appearing today and, in ad- vance, thank you for your testimony. PREPARED STATEMENT I want to also commend Chairman Reid for the outstanding job he has done in chairing the subcommittee since June of last year. I have a statement that goes into more detail, talks a little bit about the Bureau of Reclamation and their budget. Obviously, things are going fairly well for the Bureau of Reclamation and we want to hear their testimony here today. With that, I will put my statement in the record and we will go to work. [The statement follows:] PREPARED STATEMENT OF SENATOR PETE V. DOMENICI INTRODUCTION First, let me join Senator Reid in welcoming this distinguished panel of witnesses. (1) 2 I would also like to commend Chairman Reid on the outstanding job he has done in chairing this subcommittee since June of last year. He has continued the fair and non-partisan tradition in which this committee has always conducted its affairs, re- sulting in an outstanding appropriations bill in the last cycle. I believe this is your first hearing as Chairman, and I once again look forward to working with you during the course of the year. The purpose of today’s hearing is to review the fiscal year 2003 budget request of the Bureau of Reclamation and the Civil Works program of the Army Corps of Engineers. I would like to make a few comments about their budget requests. BUREAU OF RECLAMATION The fiscal year 2003 budget for the Bureau is $886 million, a reduction of $57 million from the current year level. —The largest reduction in the Bureau’s budget is in the Water and Related re- sources account, where the bulk of the Bureau’s activities are funded. This ac- count funds the Bureau’s efforts to sustain ecosystems while assisting States, tribes, and local entities in solving their water resource issues. The President’s budget provides $726 million for this account, a $36 million reduction over the fiscal year 2002 enacted level. —The funding level recommended is of concern to me because we in the West al- ways have a great need for water and greater efficiencies of its use. In addition, we are increasingly seeing endangered species competing with people for water. —I have this problem in my home State of New Mexico, with the silvery minnow, a recognized endangered species along the Rio Grande. —I have worked hard to get the parties to come to agreement on the minnow and I’ve fought to provide funding for silvery minnow conservation efforts. —My hope is that if we can come to an agreement and we can find some kind of equitable solution, then perhaps what we’re doing in New Mexico could be used as a model by other States. The Bureau is also balancing the needs of many while exercising the rights of the few, particularly in its role in fulfilling the Federal obligation in water rights settle- ments to Native American tribes, something I also have experienced within my State. Increasingly, tribes are seeking Federal water rights settlements which ultimately result in the construction of water systems by the Bureau. I am anxious to hear from the witnesses as to how they intend to manage the many challenges before the Bureau with a budget that is substantially below cur- rent year. ARMY CORPS OF ENGINEERS—CIVIL WORKS PROGRAM In light of the recent changes in leadership at the Army Corps of Engineers, the Corps will only be submitting written testimony today. However, I would like to take a few minutes to talk about the Corps’ budget. —The fiscal year 2003 budget request for the Corps of Engineers’ is $4.026 billion, a $599 million reduction over last year’s level. In total a 13 percent reduction. —The construction program is down $276 million from last year, as well as the general investigations program, down $108 million from last year. Adequate funding for the Corps of Engineers is critical to our economy in many regions of the country. Let me repeat some well known facts— —The ports and waterways the Corps maintains, is where over 90 percent of our foreign trade occurs. —Each $1 invested in flood protection project reduces flood damages and relief costs by $1.50. —Every $1 invested in navigation improvements raises America’s productivity by $3. —Flood control infrastructure, as of 1997, has prevented $706 billion of damage. CLOSING Overall, I support the President’s budget plan for fiscal year 2003, and I support the President’s budget priorities to shore up homeland defense, national security and the health of our economy. I do believe, however, that this budget is setting some challenges, particularly in the area of water infrastructure. Some of the administration’s proposed budget cuts are difficult to accept. Budgets mean setting priorities, and that will be a big chal- lenge this year. 3 In years past, as Chairman of the Energy and Water Development Subcommittee on Appropriations, I took on the task of ensuring sufficient funding for both the Corps of Engineers’ and the Bureau of Reclamations’ programs. As the Ranking Member of the Appropriations’