FY 2009 U.S. Environmental Protection Agency Budget
We are here today to review the Administration’s proposed Fiscal Year 2009 budget for the Environmental Protection Agency.WitnessSince this is the Bush Administration’s final budget proposal, let’s ask ourselves a simple question:
Is EPA better able today to protect people and communities from serious public health and environmental problems than it was when this Administration took the reins?
The answer is a resounding “No.”
The Bush Administration’s proposed budget for 2009 represents a 26% decline in overall EPA funding since the Administration’s first budget was enacted, when adjusted for inflation. Budgets are about priorities – this shows the low priority that the Bush Administration places on environmental protection.
- Stephen L. Johnson, Administrator, Environmental Protection Agency
FY 2009 U.S. Environmental Protection Agency Budget
- Stephen L. Johnson, Director. U.S. Environmental Protection Agency
Pressed by House panel, EPA chief defends waiver decision (02/26/2008) Katherine Boyle, E&ENews PM reporterU.S. EPA Administrator Stephen Johnson defended his rejection today of California’s waiver request that would have allowed state regulation of motor vehicles’ emissions of greenhouse gases in the wake of the release of agency documents showing that top EPA officials strongly disagreed with him.
Appearing before the House Interior and Environment Subcommittee, Johnson said climate change is not a unique California problem and the state’s petition for a Clean Air Act waiver did not meet the “compelling and extraordinary conditions” required by law.
“Every time another governor, another state representative talks about the need for their state to address global climate change, they’re actually making my very point on the California waiver,” he said.
The Senate Environment and Public Works Committee released documents showing EPA staff members strongly supported granting the waiver.
A presentation prepared for the director of EPA’s Transportation and Air Quality, Margo Oge, urged Johnson to grant the waiver and suggested he would face great outside pressure to deny it.
“If you are asked to deny this waiver, I fear the credibility of the agency that we both love will be irreparably damaged,” the presentation says. “You have to find a way to get this done. If you cannot, you will face a pretty big personal decision about whether you are able to stay in the job under those circumstances.”
It is “obvious” there is “no legal or technical justification for denying” the waiver, says the presentation prepared by Chris Grundler, Oge’s deputy director at the National Vehicle and Fuel Emissions Laboratory in Michigan.
Johnson said he only became aware of the presentation when Congress requested documents on the waiver decision.
“It was never presented to me,” he said.
Rep. Tom Udall (D-N.M.) pressed him, asking if Oge ever raised the issues in the presentation.
But Johnson again denied seeing the presentation, although he didn’t say whether Oge raised those points.
“I received a lot of comments from my professional staff, and they presented me with a wide range of options,” Johnson said. “One of the options was denial. One of the options was to grant the waiver.”
Johnson said he will issue a final decision document on the waiver by the end of the week.
Department of Interior’s oil, gas and mineral revenue programs
At the hearing, Chairman Feinstein will call for passage of legislation she has sponsored to close a loophole that has allowed oil and gas companies to pay no royalty payments for drilling on the Outer Continental Shelf for leases negotiated in 1998 and 1999. This measure to close the loophole was stripped from the FY2008 Interior Appropriations bill.
Under this provision, the companies who have not renegotiated their existing contracts will have a choice.
- They can keep their existing leases royalty-free if they so choose, but be barred from bidding on new contracts, or
- They can agree to renegotiate these leases in good faith and be able to participate in the bidding for new leases.
- C. Stephen Allred, Assistant Secretary for Lands and Minerals Management, Department of the Interior
- Randall Luthi, Director, Minerals Management Service
Luthi Before Interior Appropriations Tomorrow
Randall Luthi, the controversial chief of the Department of Interior’s Minerals Management Service, will be testifying at a Senate Appropriations subcommittee tomorrow morning. His decision to hold the Chukchi Sea drilling lease sale two weeks ago, the first offshore sale in over a decade, while the Fish & Wildlife Service continues to delay its ruling on the endangerment of polar bears, has garnered protests from government scientists, environmental groups and Congressional Democrats.
Sen. Feinstein, the chair of the subcommittee, released the following statement:At the hearing, Chairman Feinstein will call for passage of legislation she has sponsored to close a loophole that has allowed oil and gas companies to pay no royalty payments for drilling on the Outer Continental Shelf for leases negotiated in 1998 and 1999. This measure to close the loophole was stripped from the FY2008 Interior Appropriations bill.
Feinstein has been pushing for this legislation at least since 2006, since the loophole in 1998 and 1999 leases issued under the Deep Water Royalty Relief Act of 1995 was discussed in Congressional hearings.
Energy Efficiency and Renewable Energy: Reviewing FY 2009 Budget Request and Key Tax Incentives
The Environmental and Energy Study Institute (EESI) and the House Energy Efficiency and Renewable Energy Caucus invite you to a briefing addressing the impacts of the President’s FY 2009 budget on energy efficiency and renewable energy (EE/RE) programs, including impacts upon states and low-income consumers. In addition, the urgent need to extend Federal tax incentives for EE/RE will be discussed. Energy efficiency and renewable energy technologies are critical elements of a national energy policy that will meet the nation’s goals of reducing energy imports, moderating energy prices, and improving the economy, national security, the environment and public health.
Panel- Deborah Estes, Majority Counsel, Senate Energy and Natural Resources Committee
- Scott Sklar, President, The Stella Group; Chair, Sustainable Energy Coalition Steering Committee
- Bill Prindle, Deputy Director, American Council for an Energy Efficient Economy
- Jeff Genzer, General Counsel, National Association of State Energy Officials; Duncan Weinberg, Genzer & Pembroke
The President’s FY 2009 budget request for the Department of Energy’s (DOE) EE/RE programs is $1.26 billion—essentially flat with the Administration’s FY 2008 budget request and 27 percent below FY 2008 appropriations. Given the volume of voices and concerns about energy security, the huge bills residential and business consumers face, loss of economic competitiveness, environmental degradation, and rising greenhouse gas emissions, the funding priorities reflected in the President’s FY 09 budget appear in conflict with his goals of expanding renewable energy development and making the economy more energy efficient. With dramatically rising energy prices for homes, businesses and drivers, states are concerned by the proposed zeroing out of the Weatherization Assistance Program Grants.
In signing the Energy Independence and Security Act of 2007 (EISA, P.L. 110-140) on December 19, 2007, President Bush said EISA makes “a major step toward reducing our dependence on oil, confronting global climate change, expanding the production of renewable fuels and giving future generations of our country a nation that is stronger, cleaner and more secure.” However, not included in EISA were a Renewable Energy Portfolio Standard (RPS) and an extension of renewable energy and energy efficiency tax incentives. A new economic study by Navigant Consulting finds that over 116,000 US jobs and nearly $19 billion in U.S. investment could be lost in just one year if renewable energy tax credits are not renewed by Congress. See EESI’s FY 2009 DOE Budget Analysis regarding requested funding for energy efficiency and renewable energy.
This briefing is free and open to the public. No RSVP required. For more information, contact Fred Beck at fbeck@eesi.org or 202-662-1892.
FY 2009 Environmental Protection Agency Budget
- Stephen Johnson, Administrator, U.S. Environmental Protection Agency
Budget Briefing: Transportation Budget Cut, Shifts Funds from Mass Transit to Highways
On February 4, 2008, Transportation Secretary Mary Peters released the 2009 fiscal year (FY) budget request for the U.S. Department of Transportation (DOT) to fund construction, maintenance, and operation activities for the nation’s roadways, railways, and air transportation. The proposed $68.2 billion total represents a $2.13 billion decrease from the FY 2008 appropriations bill enacted in December 2007. Moreover, proposed budget rescission measures totaling $3.89 billion would further reduce the budgetary resources available to DOT in FY 2009 to $64.31 billion.
The Administration is again proposing dramatic cuts in federal support for Amtrak. Congress appropriated $1.3 billion for Amtrak in FY 2008 with $850 million going to capital and debt service and $475 million to operating subsidies. The Administration’s budget proposes a total of $800 million, a cut of $525 million or 40 percent. The Administration proposes $525 million for capital and debt service grants and $275 million for “efficiency incentive grants” which would replace direct operating subsidies and give the Secretary of Transportation discretion in how the funds are used.
Other highlights in the Department of Transportation (DOT) budget include:
- Congestion Mitigation and Air Quality Improvement Program (CMAQ) – $1.8 billion. CMAQ supports transportation projects that assist in meeting and maintaining national ambient air quality standards.
- Clean Fuels Grant Program – $51 million to support transit operators in transitioning to cleaner and more efficient buses and fuels, an increase of $2 million from $49 million appropriated in FY 2008.
- Transit Planning – $113.5 million to support the activities of regional planning agencies and states to plan for transit investments, an increase of $6.5 million from $107 million appropriated in FY 2008.
The Administration’s proposed budget request includes $40.1 billion to fund highways and bridges through the Federal Highway Administration (FHWA), a $1.1 million decrease from the $41.2 billion total appropriated to FHWA for FY 2008, including the $1 billion supplemental appropriation for bridge repair. The requested amount also is below the $41.2 billion authorized in “SAFETEA-LU” (Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users of 2005).
The proposed budget requests $10.1 billion for the Federal Transit Administration (FTA) to fund rail and bus transit needs. This represents an increase of $644 million over FY 2008 funding for FTA, but the amount is $202 million below the amount authorized by SAFETEA-LU.
More significantly, the Administration is proposing to transfer $3.2 billion from the Mass Transit Account to the Highway Account, which is estimated to have a negative balance of $3.2 billion dollars in FY 2009. The Administration says these funds will be repaid to the Mass Transit Account through provisions in a future transportation authorization law.
Of the $10.1 billion in total spending proposed for FTA in FY 2009, the Formula and Bus Grants program will receive $8.3 billion, which is the amount of obligation limitation authorized by SAFETEA-LU and is a $593 million increase over FY 2008.
Other major FTA program accounts are funded from the general fund, not the Highway Trust Fund, and are subject to more budgetary discretion. The largest general fund transit account is the Capital Investment Grants program (formerly known as New Starts), which would receive $1.6 billion under the proposed budget. This is $51 million above the FY 2008 level but below the $1.8 billion authorized by SAFETEA-LU for FY 2009. Overall, the Administration’s budget requests $202 million less than the amount authorized by SAFETEA-LU for general fund transit accounts.
For more information contact Jan Mueller, jmueller@eesi.org, 202-662-1883.
FY 2009 Department of Agriculture Budget
Overall, the fiscal 2009 USDA budget would cut discretionary spending by 4.8 percent. The major increases in the budget would go to food assistance programs to cover the growing number of people who qualify for food stamps and other aid programs. Two of the hardest hit areas of the budget would be research and conservation, which would each see budget cuts of almost 15 percent.WitnessThe administration’s proposal would cut more than 10 percent from USDA’s research budget, which includes a wide range of programs, from livestock safety to farm-based energy, biotechnology and food safety. USDA Deputy Secretary Chuck Conner said last week that the cuts came from wiping out congressional earmarks for different research projects.
The White House also made what has become an annual effort to zero out funding for a number of discretionary programs it says are redundant, including local watershed surveys and flood prevention programs. The Bush administration has tried to eliminate the programs in previous years, but congressional appropriators have restored them each year. DeLauro noted she plans to restore the funds again this year.
This year the administration also targeted a popular renewable energy program in its spending cuts for the first time. The budget includes no funding for grants or loans for the “Section 9006” renewable energy program, which gives money to help farmers improve energy efficiency on their farms and develop small on-farm business ventures in wind, solar, biomass or geothermal energy.
The House and Senate both proposed large increases for the renewable energy program in last year’s farm bill and appropriations measures, and the administration had proposed expanding it in the farm bill. USDA included it this year in a list of programs that “serve limited purposes for which financing and other assistance is available.”
- Edward Schafer, Secretary of Agriculture
FY 2009 U.S. Forest Service Budget
The agency’s fire suppression efforts would get a $148 million increase – to just under $1 billion – under the plan, a total based on the 10-year average of fire suppression costs. Last year, the Forest Service spent $1.4 billion fighting fires, the National Interagency Fire Center said.WitnessThe Bush administration budget proposal would provide $297 million for projects to reduce hazardous fuels, down from $310 million in fiscal 2008. Fire preparedness would fall to $588 million from $666 million in fiscal 2008.
Several lawmakers last week slammed the proposed budget, saying it overemphasizes firefighting at the cost of fire prevention and forest restoration. . . Kimbell will be the sole witness before House appropriators on Wednesday. The chairman of the Interior subcommittee, Rep. Norm Dicks (D-Wash.), was also highly critical of the agency’s proposed budget cuts.
The Forest Legacy Program, which helps conserve threatened private forests, would be reduced $40 million, to $12.5 million. The budget would also eliminate $40 million that Dicks placed in the fiscal 2008 budget for road decommissioning and reclamation.
“The Forest Service has just gotten crushed,” Dicks said in an interview last week. “It’s cut 16 percent … and they don’t have enough money over there to do the trail work, the road work, the forestry with the states, the conservation.”
- Abigail R. Kimbell, Chief, U.S. Forest Service