BOARD02415

• Board Meeting Date: 3/20/2000
• Description: Directors' Reports
• Board Meetings - Doc Type: Memo

FY 2001 Budget Request: The President's $1.84 trillion dollar Fiscal Year 2001 budget
request was released on February 7. Under the proposal: Agriculture spending would decrease
8.7%, the EP A would receive 5.9%, more, and Interior would receive 1.2% more.

The request for the Bureau of Reclamation is $801 million, up $33.1 million from last year.
The 2001 budget includes $643.1 million for water and related resources accounts, up $36.1
million, including $77.3 million for dam safety, up $11.9 million. Major project funding requests
include $65.3 million for the Central Valley Project (CVP) in California, $33.7 million for the
Central Arizona Project (CAP), $23.6 million for the Mni Wiconi Project in South Dakota, and
$17.4 million for the Garrison Diversion Unit in North Dakota. Priority programs include
environmental restoration and water conservation. There is $60 million for the California Bay-
Delta Program, with $36 million for ecosystem restoration, and $24 million for other
components, such as water transfers, water quality protection, and ground water recharge and
storage. The request includes another $22 million for water reclamation and reuse, including
eight ongoing projects, $16.8 million for endangered species- specific conservation and recovery
efforts, $3.5 million for a temperature control device at Glen Canyon Dam, and $9.4 million for
the small projects loan program (down $2.2 million). For more information see
www.usbr.gov/main/news/newsreleases.

The budget includes $4.064 billion for the U.S. Army Corps of Engineers Civil Works
Program. According to Dr. Joseph Westphal, Assistant Secretary of the Army, the budget
combines new initiatives that incorporate a comprehensive approach to watershed/river basin
planning, modernization of infrastructure, and non-structural flood hazard mitigation. The Corps
budget accounts include $13 7.7 million for general investigations, $1.346 billion for
construction, $1.854 billion for operation and maintenance, $125 million for regulatory
programs, $309 million for Mississippi River and tributaries flood control, $152 million for
general expenses, and $140 million for management and clean up at certain contaminated sites,
where responsibilities were transferred to the Corps from the Department of Energy.
Environmental restoration program and project requests total $895 million, or about 22% of the
total Corps budget. There is $91 million for the Columbia River Fish Mitigation Program, $158
million for restoration activities in the Everglades, and $468 million for other ongoing
environmental restoration programs.

There are two new programs -- the Challenge 21 Riverine Ecosystem Restoration and Flood
Hazard Mitigation Program and the Recreation Modernization Program -- for which the Corps
has asked for $20 million and $27 million respectively There are four new comprehensive
watershed/river basin studies, including the Rio Grande Basin and Yellowstone River Basin.
New construction starts include Rio Salado environmental restoration in Phoenix and Tempe and
Folsom Dam Modifications on the American River in California for flood control. For more
details, visit www.usace.army.millinet/functions/cw/.

The $7.3 billion request for the EPA includes $2.2 billion for a proposed Better America
Bonds Program, $784 million for the Clean Water Action Plan, $50 million for a new initiative
to protect and restore the Great Lakes, $45 million for a new initiative to identify and step up
work on remediation of polluted waterways, and $250 million in grants to states for projects to
control polluted runoff, up $50 million from FY2000. The budget proposes allowing states to use
. up to 19% of state revolving loan funds for controlling polluted runoff.

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