[Senate Hearing 108-]
[From the U.S. Government Publishing Office]
DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT, AND
INDEPENDENT AGENCIES APPROPRIATIONS FOR FISCAL YEAR 2005
----------
U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
MATERIAL SUBMITTED BY AGENCIES NOT APPEARING FOR FORMAL HEARINGS
[Clerk's Note.--The following agencies of the Subcommittee
on VA, HUD and Independent Agencies did not appear before the
subcommittee this year. Chairman Bond requested these agencies
to submit testimony in support of their fiscal year 2005 budget
request. Those statements submitted by the chairman follow:]
DEPARTMENT OF THE ARMY--CIVIL
Prepared Statement of the Honorable John Paul Woodley, Jr., Assistant
Secretary of the Army (Civil Works)
THE CEMETERIAL EXPENSES BUDGET FISCAL YEAR 2005
Mr. Chairman and distinguished members of the subcommittee, thank
you for the opportunity to provide testimony before this subcommittee
in support of the President's budget for the Department of the Army's
Cemeterial Expenses program for fiscal year 2005.
The Secretary of the Army, is responsible for operating and
maintaining Arlington and Soldiers' and Airmen's Home National
Cemeteries, as well as making necessary capital improvements to ensure
their long-term viability.
Arlington National Cemetery is the Nation's premier military
cemetery. It is an honor to represent this cemetery and the Soldiers'
and Airmen's Home National Cemetery. On behalf of these two cemeteries
and the Department of the Army, I would like to express our
appreciation for the support this subcommittee has provided over the
years.
FISCAL YEAR 2005 BUDGET OVERVIEW
The fiscal year 2005 budget is $29,600,000, which is $600,000 more
than the fiscal year 2004 appropriation of $29,000,000. The fiscal year
2005 budget will support Arlington National Cemetery's efforts to
improve its infrastructure and continue working toward implementation
of its Ten-year Capital Investment Plan. The funds requested are
sufficient to support the work force, assure adequate maintenance of
buildings and grounds, acquire necessary supplies and equipment, and
provide the high standards of service expected at Arlington and
Soldiers' and Airmen's Home National Cemeteries.
The budget also includes funds to pursue expansion efforts needed
to ensure that Arlington National Cemetery remains an active burial
place for service men and women into the next century. The following
table displays how long gravesites will remain available in both
developed and undeveloped areas that are currently part of the
Cemetery. It is presented to illustrate the importance of proceeding
with expansion projects in a timely manner so that there will be no
disruption in services for deceased veterans and to relieve significant
crowding of funeral services.
Note that the gravesite capacity shown in the table for the
undeveloped area is for currently owned land (i.e., Project 90 and
utility relocations), but does not include the Millennium Project,
which requires both land within the Cemetery's boundaries (i.e., the
old warehouse area and Section 29 land) and land to be transferred to
the Cemetery (i.e., Fort Myer picnic area). Nor does the table reflect
future land expansion projects programmed in the Ten-year Capital
Investment Plan beyond the Millennium Project, such as the Navy Annex
and Fort Myer parking lot, all of which are currently authorized and
are addressed in the Concept Land Utilization Plan.
ARLINGTON NATIONAL CEMETERY GRAVESITE CAPACITY AS OF SEPTEMBER 30, 2003
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Gravesite Capacity--Developed Areas..................... 242,850
Total Gravesites Used................................... 215,181
Gravesites Currently Available.......................... 27,669
Year Available Capacity Exhausted....................... 2012
Gravesite Capacity--Undeveloped Area.................... 36,000
Total Gravesite Capacity................................ 278,850
Year Total Capacity Exhausted........................... 2025
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I will elaborate further on the significance of the declining
gravesite capacity later on in this statement.
BUDGET DETAILS
The budget is made up of three programs--Operation and Maintenance,
Administration, and Construction. The principal items contained in each
program are described below.
Operation and Maintenance Program
The budget for the Operation and Maintenance program is
$17,846,000. It provides for the cost of operations necessary to
conduct an average of 25 funeral services per day, accommodate
approximately 4 million visitors each year, and maintain 652 acres of
land and associated infrastructure. This program supports 94 of the
cemeteries' total of 100 full time equivalent (FTE) work-years.
Contractual services comprise $10,411,000, or 58 percent, of the
Operation and Maintenance program, as follows:
--$3,079,000 for tree and shrub maintenance.
--$2,485,000 for grounds maintenance.
--$1,400,000 for information/guard services.
--$1,500,000 to develop an automated system for burial records,
gravesite locations, financial management, supplies and
equipment.
--$485,000 for custodial services.
--$1,462,000 for recurring maintenance of equipment, buildings,
headstones, and other facility maintenance contracts.
The remaining funds in the Operation and Maintenance program
support the Government workforce, which is primarily responsible for
all activities associated with preparing gravesites and conducting
burial services, as well as the cost of utilities, supplies and
equipment. The cost for utilities includes a credit for previous
overpayments for water that were made based on estimated usage
resulting in no charge for water in fiscal year 2005.
One important aspect of the Operation and Maintenance Program is
the continuing initiative to automate the administrative functions of
the cemetery. Since the spring of 2000, the cemetery has contracted for
a number of business reviews to determine the cost and feasibility of
undertaking this initiative. These analyses resulted in an Information
Management Strategy that was presented to the Office of Management and
Budget (OMB) in May 2003. This strategy set forth the development of
the Total Cemetery Management System, which is designed to improve
performance as follows:
--Transform the cemetery into a more customer service-oriented
organization that improves coordination among its stakeholders
and partners.
--Increase information and services available to its customers
(family members and visitors).
--Improve customer satisfaction.
--Increase the efficiency and effectiveness of cemeterial processes
while reducing costs.
--Reduce the risks associated with the manual data access and
maintenance process.
The cost to implement the next phase of an automation initiative is
estimated to be $5,000,000, and is an ongoing project. The $1.5 million
included in the fiscal year 2005 budget will be used to complete the
required OMB reports, plan and start the next phase of a multi-year
automation effort.
Administration Program
The budget includes $1,472,000 for the Administration program,
which provides for essential management and administrative functions,
including staff supervision of Arlington and Soldiers' and Airmen's
Home National Cemeteries. Budgeted funds will provide for personnel
compensation, benefits, and reimbursable administrative support
services provided by other government agencies. This program supports
the balance of the cemeteries' workforce of six FTE work-years.
Construction Program
The Construction program's budget is $10,282,000, consisting of the
following projects:
--$5,000,000 to complete Project 90 land development.
--$75,000 to update and refine the Ten-year Capital Investment Plan.
--$200,000 to continue developing property in and adjacent to
Arlington National Cemetery, in accordance with the Concept
Land Utilization Plan.
--$1,640,000 to complete repairs at the equipment and vehicle service
complex.
--$500,000 to repair roads and walkways.
--$450,000 to repair flagstone and sidewalks.
--$420,000 to continue the grave liner program.
--$300,000 to repair storm and sanitary sewer lines.
--$610,000 to design and build a stone boundary wall at the Facility
Maintenance Complex parking facility.
--$400,000 to conduct utility surveys.
--$500,000 to study upgrades for the visitor center and
administration building.
--$187,000 to perform minor projects such as painting and cleaning
facilities.
Three of the above projects are particularly important to increase
the capacity of Arlington National Cemetery, so that space is available
for burials into the next century. They are described further in the
following paragraphs.
Project 90 Land Development.--As the table displayed earlier in
this statement illustrates, capacity in the currently developed area of
Arlington National Cemetery will be exhausted by 2012. In order to
extend the Cemetery's useful life to 2025, it is necessary to develop
the remaining 40 acres of open land within its current boundaries. This
involves the development of gravesite areas, roads, utilities and a
boundary wall with niches for the placement of cremated remains.
Approximately 26,000 additional gravesites and 5,000 niches will be
provided when the development is complete.
Significant crowding is already occurring due to the ever-shrinking
land available in the Cemetery. This is compromising the dignity of
funerals by distracting families at ongoing nearby services, as well as
disruptions caused by daily maintenance required to be performed at new
gravesites.
The Project 90 land development is fully designed and $9.4 million
in construction funds for Phase I were appropriated in fiscal year
2003. Phase I consists of grading the site, relocating utilities,
constructing roads and landscaping gravesite areas. Construction of
Phase I is scheduled to begin this spring and be finished within 2
years.
The fiscal year 2005 budget includes $5 million for Phase II of
Project 90. Phase II primarily entails construction of a new boundary
niche wall that will hold the ashes of cremated remains on the inside
of the wall. The niches and covers will be the same size and resemble
those currently used at the existing Columbarium Complex.
Ten-year Capital Investment Plan.--By our letter of February 5,
2002, we provided this subcommittee with a 10-year plan that identifies
the Cemetery's new construction, major rehabilitation, major
maintenance and study proposals for the next 10 years. It addresses
projects identified in the 1998 Master Plan and other projects needed
to ensure that the cemetery remains open for burials into the twenty-
second century. It also serves as a guide for annually recurring
maintenance needs of the Cemetery.
The fiscal year 2005 budget includes $75,000 to continue developing
and refining this multi-year plan for funding projects in a technically
sound and financially efficient manner. This is a living document that
will be periodically updated to reflect the latest information,
identify new requirements and improve the quality of cost estimates. It
is an essential tool in developing a credible long-term investment
strategy and the budget recommendations that emanate from it.
Concept Land Utilization Plan.--By our letter of October 27, 2000,
we provided this subcommittee with a plan that identifies the
requirements for developing adjacent land for future expansion. The
first site to be developed is the Millennium Project, which consists of
the development of 36 acres of land into gravesite areas, roads,
utilities, columbarium walls, and a boundary wall with niches for the
placement of cremated remains. Approximately 26,000 additional
gravesites and 15,000 niches will be provided when development is
complete. Actual yields could change significantly, depending upon
final design. The Millennium Project would extend the useful life of
the Cemetery beyond 2025 to somewhere between 2038 and 2047, depending
upon final implementation.
The Millennium Project consists of three parcels of land. The first
parcel (7 acres) is land already within the boundaries of Arlington
National Cemetery made available by demolition of the old warehouse
buildings. The second parcel (12 acres) was transferred to the Cemetery
from the National Park Service on January 28, 2002, pursuant to the
authority contained in Section 2863 of Public Law 107-107, the National
Defense Authorization Act for fiscal year 2002. The final piece of the
Millennium Project is a 17-acre parcel of adjacent land currently owned
by Fort Myer (picnic area), which is to be transferred to the Cemetery
in accordance with Section 2882 of the fiscal year 2000 Defense
Authorization Act (Public Law 106-65). We are working with Fort Myer to
implement this land transfer in the near future. With this land
transfer complete $3,300,000 of design will begin this year and the
first year of construction is anticipated for 2007.
The Concept Land Utilization Plan also includes the Navy Annex and
Fort Myer parking lot, which would extend the Cemetery's life to
somewhere between 2054 and 2068, again depending upon how these sites
are ultimately developed. Increasing capacity beyond this time frame
will require additional land expansion for gravesites or more
columbarium niches.
The other items listed in the Construction program are needed to
address aging and deteriorating infrastructure. These are primarily
repairs and replacements that should be accomplished to avoid further
cost increases and potentially disruptive emergency repairs.
FUNERALS
In fiscal year 2003, there were 3,903 interments and 2,342
inurnments. In fiscal year 2004, we estimate there will be 3,925
interments and 2,775 inurnments. Looking ahead to fiscal year 2005, we
estimate there will be 3,975 interments and 2,825 inurnments.
CEREMONIES AND VISITATION
Millions of visitors, both foreign and American, come to Arlington
to view the Cemetery and participate in ceremonial events. During
fiscal year 2003, about 3,100 ceremonies were conducted, with the
President of the United States attending the ceremonies on Veterans Day
and Memorial Day.
During fiscal year 2003, Arlington National Cemetery accommodated
approximately 4 million visitors, making it one of the most visited
historic sites in the National Capital Region. A study conducted in the
1998-1999 time frame confirmed this estimate. A customer survey system
will be designed and implemented in conjunction with the Cemetery's
overall automation plan and will be used to collect, enter and analyze
the survey data.
FISCAL YEAR 2004 APPROPRIATION
The additional $2,868,000 provided in the fiscal year 2004
appropriation will be used to accelerate the Cemetery's automation
project ($2,668,000), and address distressed headstones ($200,000). The
0.59 percent rescission included in the fiscal year 2004 appropriation
act (Public Law 108-199), amounts to $171,000 for Arlington National
Cemetery, which has been applied to those additional funds provided.
CONCLUSION
The funds included in the fiscal year 2005 budget are necessary to
maintain the existing infrastructure at Arlington National Cemetery,
provide quality services for its many visitors, make the capital
investments needed to accommodate burials, and preserve the dignity,
serenity and traditions of the cemetery. I respectfully ask the
subcommittee's favorable consideration of our budget.
Mr. Chairman, this concludes my testimony. We will be pleased to
respond to questions from the subcommittee.
______
NATIONAL CREDIT UNION ADMINISTRATION
Prepared Statement of the Honorable Dennis Dollar, Chairman
Mr. Chairman, Ranking Member Mikulski, and members of the
subcommittee. As Chairman of the National Credit Union Administration
(NCUA), I am pleased to submit testimony that presents NCUA's request
for fiscal year 2005 funding of the Community Development Revolving
Loan Fund (CDRLF) and to request $1.5 billion in fiscal year 2005
borrowing authority for our Central Liquidity Facility (CLF), and
slightly increased CLF operational expenses for the year.
NATIONAL CREDIT UNION ADMINISTRATION COMMUNITY DEVELOPMENT REVOLVING
LOAN FUND
The National Credit Union Administration (NCUA) would like to thank
the subcommittee for continuing its strong support of NCUA's Community
Development Revolving Loan Fund (CDRLF).
NCUA remains committed in our efforts to promote and facilitate the
extension of affordable financial services to individuals and
communities throughout America as demonstrated by the implementation of
the agency's successful Access Across America initiative. The CDRLF
plays a vital role in the success of Access Across America, which is
designed to reach out to underserved communities and create economic
empowerment for people from all walks of life. Low-income designated
credit unions use the loans to further community development by
providing funding for member loan demand, additional member services,
and increased credit union capacity to serve members that has resulted
in the overall improvement of the financial condition of low-income
credit union members. The grants are used for verifiable and need-based
technical assistance purposes by low-income designated credit unions.
Congress established the CDRLF in 1979 to provide low-interest
loans to credit unions that have been designated low-income by NCUA.
NCUA has administered the CDRLF for 14 years. By year-end 2003, the
CDRLF had provided to 224 loans totaling $33.9 million to low-income
designated credit unions. In 1992, NCUA initiated a technical
assistance grant (TAG) program in conjunction with the CDRLF which
funded grants from the interest generated from outstanding CDRLF loans.
To date, NCUA has provided 1,206 TAGs totaling $2.8 million.
NCUA views the CDRLF as a resource for incubation monies for low-
income designated credit unions to initiate or develop services for
members, thereby providing further opportunities to self-fund or obtain
more substantial funding. Low-income designated credit unions use CDRLF
loans to further community development efforts by funding member loan
demand, provide additional member services, increase capacity to
service members and improve the financial condition of low-income
credit union members. TAGs support many of the services low-income
designated credit unions provide to their members, including member
financial literacy programs and electronic delivery systems.
Background
The CDRLF was established by Congress (Public Law 96-124, Nov. 20,
1979) through an initial $6 million appropriation to stimulate economic
development in low-income communities. In 1990 the sole administration
of the CDRLF was transferred to NCUA after having been administered by
various Federal agencies.
Congress did not provide additional appropriations for the CDRLF
from 1979 to 1996. For fiscal year 1997, Congress appropriated an
additional $1 million for the loan program with subsequent
appropriations as follows:
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Fiscal Year 1997................... $1,000,000 Loans.
Fiscal Year 1998................... 1,000,000 Loans.
Fiscal Year 1999................... 2,000,000 Loans.
Fiscal Year 2000................... 1,000,000 Loans.
Fiscal Year 2001................... 350,000 TAG.
650,000 Loans.
Fiscal Year 2002................... 350,000 TAG.
650,000 Loans.
Fiscal Year 2003................... 300,000 TAG.
700,000 Loans.
Fiscal Year 2004................... 1,000,000 TAG.
200,000 Loans.
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Administrative expenses related to the CDRLF are fully absorbed by
NCUA. All appropriations, as well as any earnings generated from the
CDRLF's assets, are provided to the intended low-income designated
credit unions after any necessary adjustments to recognize potential
losses in the loan portfolio.
Qualifying Applicants
In order to qualify for participation in the CDRLF, credit union
applicants must have a low-income designation and must serve
predominantly low-income members. NCUA regulations define low-income
members as those persons either earning less than 80 percent of the
average for all wage earners as established by the Bureau of Labor
Statistics or those whose annual income falls at or below 80 percent of
the median household income for the Nation. The NCUA standard for 2003
income for a household was $35,913 and $21,360 for an individual.
Revolving Loan Component
The revolving loan component of the CDRLF is designed to assist as
many qualifying credit unions as possible. Therefore, loans are limited
to $300,000 and no credit union may have more than two separate loans
at any one time. Loans must be repaid within 5 years, although a
shorter repayment period may be considered.
Generally, loans are required to be paid in semiannual installments
with no principal balance repayment due during the first year. To
combat the potential misuse of funds, NCUA regulations require that
recipient credit unions must match the loan with funding from member
share deposits or non-member deposits within the first year.
Interest rates are set annually by the NCUA Board at a rate between
1 and 3 percent. Due to the current interest rate environment, the NCUA
Board has set a 1 percent interest rate for 2004.
NCUA has authorized an open application period for participation in
the loan program. This unrestricted application period enables low-
income credit unions--most of which have very few employees and limited
resources--to develop and present a viable plan for better serving
their fields of membership. The open application period also allows
credit unions to implement projects and services on a more timely
basis.
During 2002, NCUA revised the loan program in an effort to achieve
greater flexibility and mitigate risk. Although loan repayments
accelerated during this period of time, the revised program offset the
anticipated loss of loans with increased interest and applications for
the loan program. During 2003, 11 credit union loan applications were
received.
Credit unions most likely to utilize the loan program are generally
small in size with the median asset size of participating credit unions
since 1990 being $3.4 million.
To help ensure equality in loan approvals, a scoring system judges
the purpose of the proposed use of funds, the financial condition of
the credit union and management's capability of achieving the stated
objective and operating the credit union in a safe and sound manner. As
a regulator, NCUA has the added advantage of using credit union
examinations to ensure the financial stability of loan grantees.
Technical Assistance Grants (TAGs)
TAGs are generally awarded in amounts less than $5,000 and are made
directly to low-income designated credit unions requiring assistance to
further their outreach into the communities they serve. The grants
assist these credit unions, generally less than $3 million in assets,
in their efforts to improve service to their members by providing
training opportunities to credit union staff, supplying funds for
operational upgrades in recordkeeping, offering stipends to credit
unions for summer student intern programs, promoting credit union
services, developing training and consulting services for members and
other worthwhile programs. With assistance provided through the TAG
program, credit unions have also realized improved service in the
delivery of financial products and services through enhanced
technology. In 2003, 114 credit unions received more than $259,000
specifically designated for technology improvements which includes
upgrades in hardware and software, debit card programs and automated
response systems.
To ensure the funds are used solely for the purpose approved,
grants are issued as reimbursements for goods or services previously
approved by NCUA and much like the loan component of the CDRLF, TAGs
are available to low-income designated credit unions throughout the
year.
Beginning in 2001, Congress specifically designated a portion of
its annual appropriations for TAGs. Prior to 2001, the grant program
was funded solely through earnings from outstanding CDRLF loans and
never exceeded $250,000.
Grant requests continue to exceed all available resources. In 2003,
NCUA received requests for more than $1.2 million. Due to limited
resources, NCUA was forced to decline requests for more than $750,000
that could have been used to provide much needed services in low-
incomes areas. Earlier this year, Congress, recognizing the high demand
for technical assistance, specifically designated $1 million of the
total appropriation for the grant component of the CDRLF for fiscal
year 2004. The additional funding will assist in expanding two existing
programs available to participating credit unions--the student intern
program and the Volunteer Income Tax Assistance program, as well as
establish a number of new community development initiatives.
From its inception in 1992, the CDRLF has provided 1,206 technical
assistance grants totaling $2.8 million to low-income designated credit
unions. In 2003, NCUA disbursed grants totaling $460,000.
Student Intern Program
In 1996, NCUA established a student intern program funded entirely
by the grant component of the CDRLF. The program is designed to provide
low-income designated credit unions the opportunity for college
students to contribute to the operations of the credit union while
learning about the credit union community. The program makes grants
totaling an average of $69,000 annually, with 28 low-income designated
credit unions and their 28 credit union partners participating. Student
interns participating in the program work at both the low-income
designated credit unions and their partnering credit unions, affording
them with the opportunity to share best practices between the
institutions. Response from student and credit union participants has
been extremely positive. The program is reevaluated annually to assess
its ongoing impact and feasibility.
VITA Program
In 2003, NCUA designated $50,000 for low-income designated credit
unions establishing VITA (Volunteer Income Tax Assistance) sites. The
VITA program is administered by the Internal Revenue Service to assist
low-income and elderly taxpayers with income tax preparation, and to
encourage low-wage earners to file for the Earned Income Tax Credit
(EITC). Last year, NCUA granted 13 credit unions a total of $50,000
dollars to offset some of the administrative burden associated with
setting up these taxpayer clinics. With the increase in appropriated
funds for fiscal year 2004 and expectations for increased
participation, NCUA designated $75,000 for credit unions to set up VITA
programs for 2005.
Other TAG Programs
With the increased funding for fiscal year 2004, NCUA has
designated funds for new targeted initiatives. NCUA recently announced
three new TAG programs. This year, $350,000 has been made available to
low-income designated credit unions for developing financial education
programs, homeownership initiatives and training assistance.
The specialized TAG programs emphasize initiatives that help
communities develop self-sufficiency. The Financial Education
Assistance Program is intended to provide members and potential members
with practical money management skills, as well as an introduction to
financial planning. Credit unions receiving funds through the
Homeownership Assistance Program will utilize the funds to enhance
their partnerships with affiliates of the Neighborhood Reinvestment
Corporation, referred to as Neighbor Works Organizations, in
establishing and improving mortgage lending/homeownership programs. The
training program TAGs will cover tuition and travel costs associated
with attending recognized training courses for credit union staff and
leaders. Educated and informed credit union staff and volunteers are
essential to providing safe and sound services to credit union members.
NCUA is in the process of developing other TAG initiatives to
assist credit unions in the enhancement of technology systems,
expansion of financial services to underserved areas, the creation of
individual development accounts (IDAs), the establishment of remittance
programs and credit union mentoring opportunities. These programs will
be announced in the second quarter.
The CDRLF continues to provide low-income designated credit
unions--particularly those of smaller asset size--the opportunity to
obtain loans and technical assistance grants to improve and enhance
services to their members. Though a small program, it provides valuable
aid and assistance for those credit unions benefiting from this support
while striving for self-sufficiency. Credit unions, through their
cooperative structure, are funded through the share deposits of their
members. The CDRLF provides needed assistance to further growth and
viability of participating credit unions serving low-income fields of
membership. Access to affordable financial services can provide
underserved communities with a much needed alternative to high-cost
lenders, allowing the residents to keep more of their money in their
communities. NCUA firmly believes that, based upon the amount of loan
and technical assistance grant applications where the needs were unable
to be met last year, an increase of an additional $800,000 over last
year's funding level could provide the CDRLF program even greater
ability to further growth and long-term viability of credit unions in
low-income and underserved areas.
national credit union administration central liquidity facility
The National Credit Union Administration Central Liquidity Facility
(CLF) was created by the National Credit Union Administration Central
Liquidity Facility Act (Public Law 95-630, Title XVIII, 12 U.S.C. 1795,
et seq.). The CLF is a mixed ownership government corporation managed
by the National Credit Union Administration Board. It is owned by its
member credit unions who contribute all of the capital by the purchase
of stock. The CLF became operational on October 1, 1979.
The purpose of the CLF is to improve general financial stability by
meeting the liquidity needs of credit unions and thereby encourage
savings, support consumer and mortgage lending and provide basic
financial resources to all segments of the economy. To accomplish this
purpose, member credit unions invest in the CLF through the purchase of
stock, which is used for investment purposes and the funding of some
lending activity. The proceeds of borrowed funds from the Federal
Financing Bank are used to match fund significant loan requests from
member credit unions.
In addition to serving its direct members, the CLF complements the
organizational structure of the U.S. credit union financial system by
working with its agent members, which are corporate credit unions
acting as agents of the CLF on behalf of their natural person credit
union membership. This agent framework consists of a private financial
network of 29 State and federally chartered corporate credit unions
with approximately $74.5 billion in assets. The corporate credit union
network provides operational and correspondent services, investment
products and advice and short-term loans to its approximately 9,751
natural person credit unions. The CLF provides this network with
assurance that if temporary liquidity shortages or public confidence
issues arise due to external events or internal problems, funds are
available to meet abnormal savings outflow. By being a specialized
lender housed within NCUA, the CLF has the ability to draw upon the
supervisory and insurance resources of the agency. However, CLF
assistance is generally a secondary source of funds after the corporate
system or other sources of credit have been utilized. Often the CLF is
used when other credit sources have been unable to provide the
appropriate terms and conditions required in a specific situation.
The borrowings of the CLF have the ``full faith and credit'' of the
United States Government. The Federal Financing Bank of the U.S.
Treasury is available as a source for the CLF to fund its lending
programs. The CLF is financially self-supporting and does not use
government funds to support any of its administrative and operational
expenses.
Lending Activities
Loans are available to credit unions directly from the CLF or
through its agent credit members. Credit unions rely on market sources
to meet their demands for funds. The CLF normally is not an active
participant in the on-going daily operations of this system. Rather,
its role is to be available when unexpected, unusual or extreme events
cause temporary shortages of funds. If not handled immediately, these
shortages could lead to a larger crisis in individual credit unions or
even the system as a whole. Because of its knowledge of credit unions
and its immediate access to the supervisory information of NCUA, the
CLF exercises a vital role in maintaining member and public confidence
in the health of the U.S. credit union financial system.
Factors Influencing Credit Union Borrowing Demand
Under the Federal Credit Union Act, the CLF is intended to address
unusual or unpredictable events that may impact the liquidity needs of
credit unions. Since these events are not generally foreseen, it is
extremely difficult to forecast potential loan demand. Throughout the
history of the CLF, loan demand has widely fluctuated in both volume
and dollar amount.
The CLF is authorized by statute to borrow from any source up to 12
times its subscribed capital stock and surplus. Since fiscal year 2001,
a borrowing limit of $1.5 billion has been approved by Congress. The
continuation of the $1.5 billion cap for fiscal year 2005 will further
assure that the CLF continues as a reliable, efficient backup liquidity
source in times of need.
It is important to note that CLF loans are not used to increase
loan or investment volumes because by statute the proceeds from CLF
loans cannot be used to expand credit union portfolios. Rather, the
funds are advanced strictly to support the purpose stated in the
Federal Credit Union Act--credit union liquidity needs--and in response
to circumstances dictated by market events.
Administrative Expenses
Total operating expenses for fiscal year 2003 were $208,000, below
the budget limitation of $309,000. Expenses were under budget due to
lower travel expenses than anticipated due to a reorganization of CLF
officers and low group agent fee expense.
Total operating expenses for fiscal year 2004 are projected to be
within our budget limitation of $310,000. In fiscal year 2004, pay and
related benefits are higher than 2003 due to salary increases and
higher agent fee expenses.
For fiscal year 2005, the CLF is requesting an administrative
expense limitation of $309,000. This figure is slightly lower than the
previous year, a result of reduced expenses associated with projected
operations for 2005.
Additional Background
Credit unions manage liquidity through a dynamic asset and
liability management process. When on-hand liquidity is low, credit
unions must increasingly utilize borrowed funds from third-party
providers to maintain an appropriate balance between liquidity and
sound asset/liability positions. The CLF provides a measure of
stability in times of limited liquidity by ensuring a back-up source of
funds for institutions that experience a sudden or unexpected shortage
that cannot adequately be met by advances from primary funding sources.
Two ratios that provide information about relative liquidity are the
loan-to-share ratio and the liquid asset ratio. Liquid assets are
defined as all investments less than 1 year plus all cash on hand.
Managing liquidity risk is a major priority for credit unions and has
become an increasingly important risk issue in the past decade as the
charts below indicate.
Chart 1 shows the ratio of loans to shares in all federally insured
credit unions. As the ratio of loans to shares increases, the amount of
funds maintained in short-term liquid investments declines. Liquidity
risk has increased on average in the past decade as on-hand liquidity
in federally insured credit unions gradually declined due to increased
lending. A substantial inflow of shares during 2003 reduced the ratio
from the year-end 2002 high of 70.8 percent down to a year-end 2003
level of 69.8 percent. Liquidity risk management remains a significant
obligation for credit unions.
Chart 2 shows the ratio of liquid assets to total assets in all
federally insured credit unions. As this ratio decreases, liquidity
risk and the potential need for borrowed funds conversely increases.
Credit unions utilize various market sources for funding needs
including the repurchase market, correspondent relationships with
corporate credit unions and other financial institutions, and, to a
growing extent, membership in the Federal Home Loan Bank system. CLF
serves as a back-up source of liquidity when an unexpected need for
funds arises and primary sources are not available.
The CLF continues to experience infrequent demand for liquidity
loans from its member credit unions. This is due in no small part to
the strong financial position of credit unions and the ample levels of
on-hand liquidity maintained during the 1990's. This is not to say,
however, that credit unions are not in need of a special purpose
liquidity lender. The CLF is a very important resource for credit
unions that experience an unexpected need for liquidity, especially
when primary funding sources are inadequate or unavailable.
NCUA cannot foresee the exact circumstances that might necessitate
a broad-based need for CLF lending but is dedicated to the principle
that it must be ready and able to fulfill that purpose; a purpose
established by Congress when it created the CLF. Liquidity remains an
important priority. Like all depository institutions, credit unions are
forced to borrow if their on-hand supply of liquidity is depleted
beyond the level of current funding obligations. Credit unions do plan
for such borrowing but there are times when contingency funding
arrangements are potentially inadequate. Such times call for a
responsive CLF.
Whether it lends on an isolated basis or whether it is called upon
to address a more widespread or even systemic demand for loans, the CLF
is an efficient, effective and low-cost facility well adapted to meet
the unique needs of its member credit unions.
Summary
During 2003, credit union assets and shares grew to $610 billion
and $528 billion respectively, with net worth remaining a strong 10.72
percent. The number of federally insured credit union members grew to
over 82 million. These numbers demonstrate the continued safety and
soundness of the credit union system.
NCUA greatly appreciates the subcommittee's continued support of
its efforts to keep credit unions safe and sound, enhance credit union
liquidity and provide needed assistance through loans and grants to
low-income credit unions.
______
SELECTIVE SERVICE SYSTEM
Prepared Statement of Lewis C. Brodsky, Acting Director
PREFACE
It is an honor to appear before you today again as Acting Director
of the Selective Service System. I consider it a privilege to be here,
but I bring with me the added understanding that events both national
and international will require fresh perspectives and a clear
recognition of changing realities in this new century. I welcome this
opportunity to support the President's fiscal year 2005 appropriations
request of $26,300,000 for the Selective Service System. I also welcome
the challenge of meeting Agency goals that are all the more ambitious
for their setting in today's necessary budgetary constraints.
Naturally, Selective Service will continue pursuing its traditional
goal of raising nationwide registration compliance among eligible young
men. But even as the Agency honors its traditional mandate, it is
securely focused on the future. Our agenda will be dominated by further
implementation of our Process Improvement Program 2003, so-called PIP,
in compliance with the President's Management Agenda. Using this self-
diagnostic tool, the Selective Service will continue to adjust its
operational priorities, eliminate all remaining full-time military
staffing, reduce part-time military officers and full-time civilians,
and employ more state-of-the-art information technologies to accomplish
its statutory missions while preserving maximum customer service. All
personnel decrements will be a result of planned attrition and will not
involve a Reduction-in-Force. Satisfying both goals would assure a
Selective Service System that is fair beyond reproach while meeting the
likely needs of the Department of Defense.
No one awaits more eagerly than I the arrival of a new Director.
Mr. William A. Chatfield's nomination by President Bush was sent to the
Senate last September. And his confirmation hearing before the Senate
Armed Services Committee took place at the end of January. We are
awaiting further Senate action.
CAPABILITIES
Selective Service stands ready to perform its mission. Should the
President and the Congress authorize a return to a draft, the Agency
can conduct a draft that is efficient, fair, and accepted by the
public. It is also ready to administer a program of alternative
community service for men who are classified as conscientiously opposed
to military service. With its routine communication with all men in the
United States, 18 through 25 years old, and its ability to mobilize
national manpower on a large scale, the Agency is also capable of
performing additional human resource support missions related to
national and homeland security or service, if Congress and the White
House so desire.
Selective Service continues its close partnership with the
Department of Defense by providing direct support to Armed Forces
recruiting and accessions processing. Specifically, Selective Service
provides names of registrants to the Secretary of Defense for
recruiting purposes, in accordance with a provision in the Military
Selective Service Act. As we reported previously to this committee,
information about Armed Forces opportunities and a business reply card
are now enclosed with the registration acknowledgment that the
Selective Service sends to each new registrant. Thus, the Defense
Department benefits by ``piggy-backing'' on our routine mailings and it
reimburses us for the additional costs.
Beyond its compliance with the Military Selective Service Act and
providing these tangible services, the Agency also promotes an
intangible national benefit. For present and future generations of
America's young men, Selective Service is a very critical link between
society-at-large and today's volunteer military. It is a reminder that,
as Americans, every young man is personally responsible for ``providing
for the common defense'' in the time-honored tradition of preceding
generations.
PRIORITY AREAS
Since becoming Acting Director 14 months ago, I have made sure
Agency activities conformed to President Bush's Management Agenda.
Since I last appeared before you, we have completed a reexamination of
our processes and begun implementation of a restructuring of the Agency
to meet the most likely manpower needs of the Department of Defense
(DOD) while finding improved ways of serving the public. I would point
to three initiatives that we believe satisfy administration and
Congressional charges to Federal agencies to evolve into performance-
based organizations.
1. Process Improvement Project 2003 (PIP).--Expanding upon our
fiscal year 2002 Agency's Workforce Restructuring Plan, a comprehensive
``bottom-up review'' is completed with contractor assistance. After
consulting with senior Defense manpower officials, it became apparent
to me that the Agency's current organizational structure hasn't been as
responsive or relevant to the contemporary needs of the DOD as it might
be. Consequently, we shifted our programmatic vision from readiness to
conscript large numbers of untrained men within 193 days of activation
to a draft of smaller numbers of critical skills personnel within the
same time frames. This necessary realignment reflects recognition of
current realities and the latest DOD thinking. It is being accomplished
within current resources and will result in less management overhead, a
merging of offices and programs, and an increased potential for
outsourcing some Agency functions. We are convinced the benefits
accrued from strategic management of human capital, competitive
sourcing, improved financial performance, expanded e-Government, and
better integration between budget and performance will substantially
increase Agency efficiency in its core and support processes. PIP
recognizes no ``sacred cows.'' As I promised in my last appearance
before you, Selective Service has placed all functions and programs on
the table. Each structural change and staffing decision is being driven
by practical, cost-conscious considerations.
2. Registration Compliance.--The SSS registration compliance rate
for men 18 through 25 years old declined steadily from a high of over
98 percent in 1991 to a low point of 87.7 percent in 2000. This
decrease was cause for serious concern because we believe a compliance
rate of less than 90 percent would contribute to a lack of public
confidence. The resulting draft would not be considered fair or
equitable. The public would believe, rightly so, that not everyone who
should be in the manpower pool is accounted for; and therefore those
who are registered have an increased chance of being called for
involuntary service. This is why Agency Directors since 1992 have
placed a consistent priority on raising the registration rate. By the
end of 2001, we had turned the corner and started an upward trend,
achieving 89.1 percent compliance by 18- to 25-year-old men. In 2002 we
achieved a level of 90.9 percent. Our final accounting for 2003 is not
yet complete, but initial indications are that nearly 93 percent of men
18 to 25 years old were registered at the end of the past calendar
year. The other good news is that the statistics for calendar year 2003
are indicating a 77 percent compliance rate for ``on-time''
registration of men turning 18--a 4 percent increase over the previous
year. Our recent high compliance rates represent a return to the high
rates of the early 1990's. Since public trust in the Selective Service
System is at stake, we will use every resource to continue these upward
trends in compliance. In pursuit of that goal, we:
--Continue to develop and distribute public service broadcast
messages to low compliance markets, together with printed
materials. To support this effort, we have distributed new
radio public service announcements in English and Spanish.
These high-quality products have been praised by listeners
around the country, and cost us only development, replication
and distribution--commercial air time valued at $1.8 million is
provided as free public service time.
--Have continued revamping the interactive Selective Service pages on
the World Wide Web (www.sss.gov) where online registration,
database verification, the ability to file changes of
information, and a wealth of other Agency information are now
available to anyone with access to the Internet. For calendar
year 2003, 76 percent of registrations reached the SSS through
electronic means, or about 152,000 registrations per month. We
are also placing links to our site with other Federal, State
and local agencies and schools to enhance public education and
facilitate customer responsiveness.
--Are benefitting from an increasing number of States which link
obtaining a driver's license or State I.D. card to the
Selective Service registration requirement. These State laws
currently provide Selective Service with an average of 61,166
registrations per month. As of this month, 32 States, two
territories, and the District of Columbia have laws enacted.
These jurisdictions represent over 62 percent of the national
18-year-old male registrant population. We continue to work
closely with additional States where such legislation is
pending.
3. Information Technology (IT).--The PIP resulted in new
initiatives and significant changes to the current way the Agency does
business. The resulting business cases will indicate what avenues SSS
can take to modernize its core and support processes. These changes
will require that the inventory of automated systems be modernized. The
Agency is in the process of examining its IT architecture, both
hardware and software, to identify new technology and to determine how
best to implement the support structure for the new and revised
business processes. We remain committed to investing in IT, as today's
constrained resources permit, because we know that it enhances customer
service, increases productivity, and compensates for limited human and
fiscal resources.
ADAPTABLE TO CHANGE
We are also ready to aid the Congress with any initiatives that
might capitalize upon Selective Service's unique capabilities. There
has been much dialogue among the public, private groups, and academia
concerning a draft, volunteerism, homeland security, and national
service. Selective Service has a wealth of experience in managing
volunteers, and administering programs of alternative community-based
service for men classified as Conscientious Objectors throughout its
nearly 64 years of existence. The Agency also has experience in
conducting a fair and equitable classification procedure to determine
who should serve when not all can serve. To ensure fairness and equity,
each Selective Service Board is a melting pot of civic-minded men and
women reflecting the racial, cultural and ethnic diversity of the young
men within the communities it serves. Through these volunteers, a
unique bond has been formed at the grass roots with young American men,
society-at-large, and the U.S. Armed Forces. Through the Selective
Service structure, every American community plays a positive role in
providing for the common defense. In short, this Agency has extensive
practical experience in identifying, contacting and classifying people
to participate in a national security or service program. Selective
Service can lend its expertise and ample experience to any appropriate
task.
CLOSING
Today, Mr. Chairman, thanks in very large measure to your personal
interest in this Agency and the continuing support of the subcommittee
and its staff members, the Selective Service System stands prepared to
perform its time-tested responsibilities, if so directed. The fiscal
year 2005 appropriation request of $26,300,000 will be invested
prudently in one of the Nation's important security assets in an
increasingly dangerous world. Its rationale for existence and its
credentials have never changed: to provide a compact, cost efficient
civilian structure capable of rapid expansion in a crisis; to provide
manpower to our Armed Forces as required; and to do it fairly,
equitably, and within the necessary time frames. The Selective Service
System remains resolute in its organizational realignment and
operational streamlining. It has improved service to its customers,
reinforced its commitment to America, and remains an active partner in
the national preparedness community.
Thank you, Mr. Chairman.
______
FEDERAL DEPOSIT INSURANCE CORPORATION
Office of Inspector General
Prepared Statement of Gaston L. Gianni, Jr., Inspector General
Mr. Chairman and members of the subcommittee, I am pleased to
present the fiscal year 2005 budget request totaling $29.9 million for
the Office of Inspector General (OIG) at the Federal Deposit Insurance
Corporation (FDIC). This OIG budget has a rather unusual distinction in
the Federal Government in that it reflects a decrease for the ninth
consecutive year, after adjusting for inflation. This budget has been
possible because of the improved health of the banking industry since
the early 1990's, the major staff downsizing at the FDIC and within the
OIG, and our internal efforts to improve our performance and
productivity even with reduced budgets.
As you know, the FDIC was established by the Congress in 1933,
during the Great Depression, to maintain stability and public
confidence in the Nation's banking system. Our Nation has weathered
several economic downturns since that era without the severe panic and
loss of life savings unfortunately experienced in those times. The
Federal deposit insurance offered by the FDIC is designed to protect
depositors from losses due to failures of insured commercial banks and
thrifts. The FDIC insures individual deposits of up to $100,000.
According to the Corporation's Letter to Shareholders, issued for the
4th Quarter 2003, the FDIC insured $3.451 trillion in deposits for
9,196 institutions, of which the FDIC supervised 5,313. The FDIC also
promotes the safety and soundness of these institutions by identifying,
monitoring, and addressing risks to which they are exposed.
The Corporation reports that financial institutions have recently
had record earnings. The rate of bank and thrift failures has remained
at a relatively low level over the past 10 years, and the Corporation
has substantially reduced its estimates of future losses from failures.
Assets held in receiverships following bank failures are at
comparatively low levels, and significant progress has been made at
closing older receiverships. The insurance funds are now comfortably
above the designated reserve ratio that could otherwise trigger
increases in premiums assessed on insured depository institutions.
These are important indicators of a healthy banking system, and the
Corporation can take pride in its positive contributions in each of
these areas.
The FDIC OIG was established in 1989 in accordance with amendments
added to the Inspector General (IG) Act. The OIG's program of
independent audits, investigations, and other reviews assists and
augments the FDIC's mission. Our efforts promote economy, efficiency,
and effectiveness of FDIC programs and operations and protect against
fraud, waste, and abuse.
I am completing my eighth year as the first FDIC Inspector General
appointed by the President and confirmed by the Senate and can see the
fruits of our strategic planning through the results we have achieved
during fiscal year 2003. I look forward to supporting the Congress, the
FDIC Chairman, and other corporate management in meeting current and
future challenges facing the FDIC and the banking industry.
This statement discusses OIG accomplishments during fiscal year
2003, our contributions to assist FDIC management, internal initiatives
to improve the OIG, and management and performance challenges facing
the FDIC. I am also providing additional details about our fiscal year
2005 budget and how it will be spent.
A REVIEW OF THE FDIC OIG'S FISCAL YEAR 2003 ACCOMPLISHMENTS
The OIG's fiscal year 2003 achievements are impressive, and the
results include:
--$96.8 million in actual and potential monetary benefits;
--193 non-monetary recommendations to FDIC management;
--35 referrals to the Department of Justice;
--43 indictments;
--22 convictions; and
--5 employee/disciplinary actions.
More specifically, our accomplishments included 43 completed
investigations that led to the above indictments and convictions as
well as fines, court-ordered restitution, and recoveries that
constitute the bulk of the monetary benefits from our work. Also, we
issued a total of 47 audit and evaluation reports, which included about
$431,000 in questioned costs and $2.1 million in recommendations that
funds be put to better use. The recommendations in these reports aim to
improve the internal controls and operational effectiveness in diverse
aspects of the Corporation's operations, including automated systems,
contracting, bank supervision, financial management, and asset
disposition.
Further, the OIG accomplished many of its organizational goals
during the fiscal year as outlined in our annual performance plan. Our
2003 Performance Report shows that we met or substantially met 27 of
our 34 goals, or 79 percent. In a measurable way, this achievement
shows the progress we continue to make to add value to the Corporation
with our audits, investigations, and evaluations in terms of impact,
quality, productivity, timeliness, and client satisfaction. We also met
or substantially met goals for providing professional advice to the
Corporation and for communicating with clients and the public.
Audits, Investigations, and Evaluations
Examples of the OIG's audit, investigation, and evaluation work
that contributed to these accomplishments follow.
Material Loss Review of the Failure of Southern Pacific Bank,
Torrance, California.--The OIG issued the results of its material loss
review of Southern Pacific Bank and determined that the failure
occurred because of ineffective corporate governance at the
institution, leading to a potential loss of about $91 million. The
report contained recommendations designed to improve the bank
supervision process and promote the safety and soundness of FDIC-
supervised institutions. The report also raised an issue related to
oversight of parent holding companies of industrial loan companies--one
that we are pursuing in ongoing work.
Investigation into the Failure of Oakwood Deposit Bank Company.--
Following the failure of Oakwood Deposit Bank Company on February 1,
2002, the OIG, Internal Revenue Service Criminal Investigation, and the
Federal Bureau of Investigation initiated a joint investigation. The
ongoing investigation has thus far led to the conviction of the bank's
former president and Chief Executive Officer. After pleading guilty in
May 2003 to bank embezzlement and money laundering, the former bank
president was sentenced in September 2003 for his role in the fraud
scheme that caused the failure of the 99-year-old bank. The defendant
was sentenced to 14 years' imprisonment to be followed by 5 years'
supervised release and was ordered to pay $48,718,405 in restitution.
The investigation leading to the defendant's plea found that he
began embezzling funds from the bank in 1993 with a loan to a family
member. He admitted to altering bank records and creating paperwork in
order to conceal the embezzlement, which resulted in losses to the bank
of approximately $48.7 million and led to the bank's insolvency. As
part of his plea, the defendant forfeited any and all of his interest
in property controlled by Stardancer Casinos Inc. and its subsidiaries,
as he was an investor and part owner of Stardancer. In late 1998, the
defendant began investing embezzled bank funds into Stardancer Casinos
Inc., a casino gambling operation originally headquartered near Myrtle
Beach, South Carolina. Over the course of the next 3 years, the
defendant embezzled over $43 million to purchase casino vessels and
fund the operations of the casino business. The defendant forfeited
bank accounts relating to Stardancer and two other companies identified
in the investigation. He also forfeited real estate and investments in
Florida, Ohio, Texas, and South Carolina; his interest in any of the
Stardancer vessels and equipment; $520,450 in currency seized by the
government; and any substitute properties owned by him but not
identified in the investigation as the proceeds of criminal activities.
Investigation of Scheme to Defraud Community Bank of Blountsville,
Alabama.--In October 2003, an ongoing investigation by the OIG and FBI
into an alleged fraud scheme at Community Bank of Blountsville,
Alabama, led to a 25-count indictment against the bank's former
chairman and chief executive officer (CEO), the bank's former vice-
president for construction and maintenance, and the owner of a
construction services company. The indictment charges the three
defendants with bank fraud, misapplication of bank funds, false
statements to a financial institution, and false entries in the books
and records of a financial institution. The indictment also charges the
former CEO with money laundering and filing false tax returns, and
seeks from him forfeiture of $3.45 million. The three defendants
allegedly conspired to use $2.15 million in bank funds for construction
work on the CEO's personal projects, including a 17,000-square-foot
home. While the CEO obtained more than $5 million in bank loans to
build his house, he allegedly used more than $1.34 million of those
funds for other purposes.
Previously in the investigation, a couple who owned a construction
company were found guilty on charges of bank fraud and conspiracy to
commit bank fraud and were sentenced to 18 months' incarceration and
ordered to pay restitution totaling $178,000. Our investigation found
that the couple submitted invoices for construction work purportedly
performed for Community Bank. Some of the invoices were for work never
performed, and other invoices were for personal construction work
performed for the bank's CEO, his relatives, and the bank's vice
president of construction and maintenance. Evidence was presented at
trial to show that the records of the bank were falsified to reflect
that the work was completed at the bank's facilities.
Investigation of Fraud by Securities Dealer Misrepresenting FDIC
Affiliation.--Following an FDIC OIG investigation, a securities dealer
was sentenced in the Riverside County District Court, Riverside,
California, to serve 6 years' imprisonment and ordered to pay $20,000
in fines. The sentencing was based on his plea of guilty in October
2002 to an amended complaint charging him with selling unregistered
securities, fraud, and theft. The subject, doing business as Jeffco
Financial Services, was licensed to sell securities through San
Clemente Services, Inc., another company involved in the sale of
brokered certificates of deposit (CDs). Relying on information they
were provided regarding FDIC insurance coverage, investment yields,
fees, and commissions, investors purchased approximately 1,241 CDs
totaling $67,390,735 from Jeffco Financial Services. The felony
complaint to which the subject pleaded guilty lists the names of 59
individuals or entities to whom he offered or sold unregistered
securities which are described in the complaint as ``investment
contracts in the form of interests in custodialized CDs.'' He also
pleaded guilty to making misrepresentations regarding ``annual average
yield,'' theft of property exceeding $2.5 million in value, and
participating in a pattern of felony conduct involving the taking of
more than $500,000. The FDIC OIG investigation was initiated based on a
referral by the FDIC's Division of Supervision and Consumer Protection
of information obtained during the examination of a bank indicating
irregularities in deposits the bank had placed with San Clemente
Services.
Evaluation of the FDIC's Information Technology Security Program.--
In our 2003 independent evaluation of the FDIC's Information Security
Program, required by the Federal Information Security Management Act,
we concluded that the Corporation had established and implemented
management controls that provided limited assurance of adequate
security over its information resources. However, we reported that
continued management attention was needed in several key management
control areas, including contractor security, enterprise-wide IT
architecture management, certification accreditation of major IT
systems, and IT capital planning and investment control. The report
highlights 10 key areas where the Corporation needed to focus attention
to address information security weaknesses.
Our semiannual reports to the Congress provide many other examples
of OIG accomplishments. These reports can be found on our Web page at
www.fdicig.gov/semi-reports/oig.pdf or by contacting our office.
Assistance to FDIC Management
In addition to 2003 audits, investigations, and evaluations, the
OIG made valuable contributions to the FDIC in several other ways. We
strive to work in partnership with Corporation management to share our
expertise and perspective in certain areas where management is seeking
to make improvements. Among these contributions were the following
activities:
--Reviewed 86 proposed corporate policies and 4 draft regulations and
offered comments and suggestions when appropriate.
--Commented on the FDIC's strategic and annual performance plans, and
annual performance report.
--Provided advisory comments on the FDIC's 2003 Annual Performance
Plan and 2002 Annual Report.
--Provided the Corporation with an updated risk analysis document on
the Quality of Bank Financial Reporting and Auditing and
Corporate Governance.
--Participated in division-level conferences and meetings to
communicate about our audit and investigation work and
processes.
--Assisted an FDIC team in developing a paper on the ``Root Causes of
Bank Failures from 1997 to the Present.''
--Provided technical assistance and advice to several FDIC groups
working on information technology issues, including
participating at the FDIC's information technology security
meetings. We also participated in an advisory capacity on the
Information Technology Subcommittee of the Audit Committee.
--Conducted an annual review of the Corporation's internal control
and risk management program.
--Provided oversight to several major system development efforts.
OIG Management and Operational Initiatives
An important part of our stewardship over the funding we receive
includes our continuous efforts to improve OIG operations. During the
past couple of years, we took several initiatives that continue to have
great significance on our work and operations.
The OIG participated in a significant downsizing and restructuring
initiative with the Corporation. The new organization, though smaller,
is now more closely aligned with key FDIC mission areas. For example,
our Office of Audits underwent a major reorganization and is now
organized around four operational directorates: Resolution,
Receivership, and Legal Services; Supervision and Insurance;
Information Assurance; and Resources Management. A fifth directorate,
Corporate Evaluations, performs corporate-wide and other evaluations.
During this past year we have continued to invest in our people and
the performance capacity of the OIG. During fiscal year 2002, we issued
a Human Capital Strategic Plan, which outlines four objectives to
maximize the return on our human capital investments. The objectives
relate to workforce analysis; competency investments; leadership
development; and a results-oriented, high-performance culture. Two
objectives of the plan were substantially met during this past year and
each will serve as the basis for future important human capital
projects. The OIG Business Knowledge Inventory System and the OIG Key
Competencies Project together provide valuable information to the OIG
on its skills and knowledge and will help identify where we need to
make investments in training, professional development, and
recruitment.
Six competencies were developed that we believe all OIG staff need
to contribute successfully to the OIG mission and goals. These
competencies form the basis for performance expectations of every OIG
employee, including executives. The competencies are: achieves results,
communicates effectively, demonstrates teamwork, exhibits technical
competency, demonstrates responsibility and self-development, and leads
effectively. Each of these competencies has been further defined with
subsidiary criteria describing the types of performance behaviors
included under the competency. We believe full integration of these
core competencies into the OIG's human capital system will help foster
a greater results-oriented, high-performance culture and enhance
accomplishment of OIG strategic goals and objectives.
Our strategic goals are interrelated, as follows:
Value and Impact.--OIG products will add value by achieving
significant impact related to addressing issues of importance to the
Chairman, the Congress, and the public.
Communication and Outreach.--Communication between the OIG and the
Chairman, the Congress, employees, and other stakeholders will be
effective.
Human Capital.--The OIG will align its human resources to support
the OIG mission.
Productivity.--The OIG will effectively manage its resources.
Other internal initiatives include our hosting an interagency
symposium on the Federal Information Security Management Act of 2002.
Representatives from 44 Federal agencies attended the symposium to
share information, ideas, and best practices related to the
implementation of FISMA. We also co-sponsored a second Emerging Issues
Symposium with the Offices of Inspector General of the Department of
the Treasury and the Board of Governors of the Federal Reserve System,
bringing together distinguished speakers who shared their perspectives
on the banking and financial services community with Inspector General
staff in the interest of enhancing the value that OIGs can add to their
agencies by successfully addressing risk areas. We also conducted our
fifth external customer survey regarding satisfaction with OIG
operations and processes. In keeping with the spirit of the 25th
anniversary of the IG Act, all OIG staff had an opportunity to recommit
to the mission of the OIG during an office-wide conference held in
October 2003. Our conference focused on the FDIC OIG's mission, vision,
and core values. In pursuit of our mission, vision, and values, we
designed several sessions at the conference so that our staff could
discuss how their service contributes to accomplishing our strategic
goals.
Other Activities
I continued my role as Vice Chair of the President's Council on
Integrity and Efficiency (PCIE) and have held this position since April
1999. The Council maintains six standing committees to initiate and
manage audit, investigation, evaluation, legislation, professional
development, and integrity issues and projects in the Inspector General
community. The PCIE has been very active in helping the government
achieve better results and has concentrated many of its activities on
areas that would facilitate agency efforts related to the President's
Management Agenda. To enhance the community's ability to continue
fulfilling its mission, the PCIE co-hosted its annual conference to
highlight challenges and explore ways to address them. Further, the
PCIE issued its annual report to the President. In addition, my office
led the PCIE initiative to update and revise the Quality Standards for
Federal Offices of Inspector General (Silver Book). I also represented
the OIG community within government before the Congress, delegations of
foreign visitors, and professional organizations.
Also, I played an active role in many of the community's activities
celebrating the 25th anniversary of the IG Act, including meeting with
President Bush, participating in IG interviews on C-Span's Washington
Journal, and awarding 134 individuals and teams at the community's
annual awards program. On December 1, 2003, the President signed a
joint congressional resolution recognizing the IG community on its 25th
anniversary and its accomplishments fostering good government.
Finally, the FDIC OIG completed a peer review of the nationwide
audit operations of the Department of Commerce.
management and performance challenges facing the fdic
In the spirit of the Reports Consolidation Act of 2000, the OIG
annually identifies the top management and performance challenges
facing the FDIC. We have worked with the FDIC to prepare our annual
assessment. Our update of the challenges as of December 19, 2003, was
included in the FDIC's performance and accountability report dated
February 13, 2004. The challenges capture the risks and opportunities
we see before the Corporation in the coming year or more. In addition,
these challenges serve as a guide for our work. Notwithstanding the
current strength of the banking industry, the Corporation must continue
to be vigilant because challenges are ever-present and can threaten the
Corporation's success. I will briefly discuss each of the challenges
and, where appropriate, describe OIG initiatives that address the
challenge.
1. Adequacy of Corporate Governance in Insured Depository
Institutions.--Corporate governance is generally defined as the
fulfillment of the broad stewardship responsibilities entrusted to the
Board of Directors, Officers, and external and internal auditors of a
corporation. A number of well-publicized announcements of business
failures, including financial institution failures, have raised
questions about the credibility of accounting practices and oversight
in the United States. These recent events have increased public concern
regarding the adequacy of corporate governance and, in part, prompted
passage of the Sarbanes-Oxley Act of 2002. The public's confidence in
the Nation's financial system can be shaken by deficiencies in the
adequacy of corporate governance in insured depository institutions.
To assist the Corporation in meeting this challenge, we conducted
two audits this past year that relate to material losses caused by the
failures of the Connecticut Bank of Commerce, Stamford, Connecticut and
the Southern Pacific Bank, Torrance, California. The audits concluded
that these banks failed because of ineffective corporate governance,
including the external auditors' issuance of unqualified opinions on
the banks' financial statements, and led to an estimated loss of almost
$200 million to the insurance funds. Our work on eight other material
loss reviews we have conducted since 1993 also identified inadequate
corporate governance as the primary cause of each failure.
We also conducted two audits related to the FDIC's examination of
institutions for compliance with anti-money laundering requirements.
The first audit focused on the FDIC's implementation of the United and
Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (Patriot Act). We found
that the FDIC had not issued guidance to its examiners for those
provisions of the Patriot Act requiring new or revised examination
procedures, because the FDIC was either coordinating the issuance of
uniform procedures with an interagency committee or waiting for the
Treasury Department to issue final rules. As a result of our audit, the
FDIC promptly issued interim guidance to its examiners and the uniform
rules were issued 2 months later. The second audit focused on the
FDIC's supervisory actions taken to address violations of the Bank
Secrecy Act of 1970 (BSA). We concluded that the FDIC needs to
strengthen its follow-up process for BSA violations and has initiatives
underway to reassess and update its BSA policies and procedures. We
recommended actions intended to strengthen the FDIC's monitoring and
follow-up efforts for BSA violations, update guidance for referring
institution violations to the Treasury Department, and provide
alternative coverage when State examinations do not cover BSA
compliance. FDIC management concurred with the recommendations and is
taking corrective action.
2. Protection of Consumer Interests.--The availability of deposit
insurance to protect consumer interests is a very visible way in which
the FDIC maintains public confidence in the financial system.
Additionally, as a regulator, the FDIC oversees a variety of statutory
and regulatory requirements aimed at protecting consumers from unfair
and unscrupulous banking practices. The FDIC, together with other
primary Federal regulators, has responsibility to help ensure bank
compliance with statutory and regulatory requirements related to
consumer protection, civil rights, and community reinvestment.
The OIG's recent coverage in this area includes reviews of
compliance with the Gramm-Leach-Bliley Act, Community Reinvestment Act,
and the Fair Lending Act. We plan to review new FDIC compliance
examination procedures in 2004.
3. Management and Analysis of Risks to the Insurance Funds.--The
FDIC seeks to ensure that failed financial institutions are and
continue to be resolved within the amounts available in the insurance
funds and without recourse to the U.S. Treasury for additional funds.
Achieving this goal is a significant challenge because the insurance
funds generally average just over 1.25 percent of insured deposits and
the FDIC supervises only a portion of the insured institutions. In
fact, the preponderance of insured assets are in institutions
supervised by other Federal regulators. Therefore, the FDIC has
established strategic relationships with other regulators surrounding
their shared responsibility of helping to ensure the safety and
soundness of the Nation's financial system. Economic factors also can
pose a considerable risk to the insurance funds. The FDIC actively
monitors such factors as interest rate margins and earnings in the
financial sector in an effort to anticipate and respond to emerging
risks.
To assist the FDIC in meeting this challenge, we conducted audits
that focused on FDIC examiners' assessments of commercial real estate
loans and high-loan growth, implementation of statutory prompt
corrective action provisions and a number of other audits related to
supervision and insurance issues. We also issued a follow-up report to
an earlier report entitled ``The Effectiveness of Prompt Corrective
Action Provisions in Preventing or Reducing Losses to the Deposit
Insurance Funds'', dated March 26, 2002. Our ongoing work relating to
safety and soundness examinations is assessing the effectiveness of the
Corporation's examination assessment of bank management. In addition,
we plan to review examination assessment of capital and supervision of
industrial loan companies.
4. Effectiveness of Resolution and Receivership Activities.--One of
the FDIC's primary corporate responsibilities includes planning and
efficiently handling the resolutions of failing FDIC-insured
institutions and providing prompt, responsive, and efficient resolution
of failed financial institutions. In this regard, the depositors of
insured banks and savings associations are a unique responsibility for
the FDIC. These activities maintain confidence and stability in our
financial system. Notably, since the FDIC's inception over 70 years
ago, no depositor has ever experienced a loss of insured deposits at an
FDIC-insured institution due to a failure.
To address this area we reviewed the FDIC's efforts to ensure that
bank customers have timely access to their insured deposits at failed
institutions. Also, we conducted an audit to assess the FDIC's
Readiness Program to respond to a series of failures exceeding the
FDIC's capacity to handle with its own resources. A focus of our future
work will be the Asset Servicing Technology Enhancement Project, which
is designed to provide an integrated solution that supports the FDIC's
current and future asset servicing functions based on adaptable
computing technology and data sharing that is compatible with industry
standards.
5. Management of Human Capital.--Human capital issues pose
significant elements of risk that interweave all the management and
performance challenges facing the FDIC. The FDIC has been in a
downsizing mode for the past 10 years as the workload from the banking
and thrift crisis has been accomplished. As a result, FDIC executives
and managers must be diligent and continually assess the goals and
objectives, workload, and staffing of their organizations and take
appropriate steps to ensure that the workforce has the right experience
and skills to fulfill its mission. The Corporation has created the
Corporate University to address skill levels and preserve institutional
knowledge in its five main lines of business. The Corporation is also
in the process of revamping its compensation program to place greater
emphasis on performance-based initiatives.
The OIG recently completed an evaluation of the Corporation's human
capital framework and we have a series of reviews planned to address
the various components of the human capital program, with the next
being strategic workforce planning.
6. Management and Security of Information Technology Resources.--
Management and security of information technology resources remains one
of the Corporation's most expensive and daunting challenges.
Information technology (IT) continues to play an increasingly greater
role in every aspect of the FDIC mission. Our work required under the
Federal Information Security Management Act of 2002 has shown that the
Corporation has worked hard to implement many sound information system
controls to help ensure adequate security. However, daunting challenges
remain due to the ever-increasing threat posed by hackers and other
illegal activity. We have urged the FDIC to stay the course in
developing an enterprise-wide IT architecture that maps current and
``to be'' states of business processes and the supporting information
systems and data architecture. Additionally, we have emphasized
completing system certification and accreditation processes to test the
security of deployed IT assets.
We have addressed this area through our previously mentioned annual
evaluation of FDIC's Information Security Program. In addition, we have
completed and ongoing assignments covering the IT capital planning and
investment control process to assist the Corporation in this area. We
also plan to routinely test the controls of selected major business
systems supporting critical functions such as premium assessment,
resolution and marketing, and human resource management.
7. Security of Critical Infrastructure.--To effectively protect
critical infrastructure, the FDIC's challenge in this area is to
implement measures to mitigate risks, plan for and manage emergencies
through effective contingency and continuity planning, coordinate
protective measures with other agencies, determine resource and
organization requirements, and engage in education and awareness
activities.
To assist the FDIC in this area, we reviewed the progress the
Corporation has made in implementing its Information Security Strategic
Plan. Also, we conducted a review of the adequacy of the FDIC's
approach to assessing business continuity planning at FDIC-supervised
institutions. In addition, our ongoing work includes coverage of
physical security and business continuity planning for the FDIC.
8. Management of Major Projects.--The FDIC has engaged in several
multi-million dollar projects, such as the New Financial Environment,
Central Data Repository, and Virginia Square Phase II Construction.
Without effective project management, the FDIC runs the risk that
corporate requirements and user needs may not be met in a timely, cost-
effective manner.
The OIG has performed several reviews of these projects, and our
results pointed to the need for improved defining, planning,
scheduling, and control of resources and tasks to reach goals and
milestones. The Corporation has included a project management
initiative in its 2004 performance goals and established a program
management office to address the risks and challenges that these kinds
of projects pose. We will continue to focus on the major corporate
initiatives discussed above.
9. Cost Containment and Procurement Integrity.--As steward for the
Bank Insurance Fund and Savings Association Insurance Fund, the FDIC
seeks ways to limit the use of those funds. Therefore, the Corporation
must continue to identify and implement measures to contain and reduce
costs, either through more careful spending or assessing and making
changes in business processes to increase efficiency.
The Corporation has taken a number of steps to strengthen internal
control and effective oversight. However, our work in this area
continues to show that further improvements are necessary to reduce
risks, such as requirements definition, the consideration of contractor
security in acquisition planning, incorporation of information security
requirements in FDIC contracts, oversight of contractor security
practices, and compliance with billing guidelines. Our audits continue
to assist the Corporation in this area.
10. Assessment of Corporate Performance.--The Corporation has made
significant progress in implementing the Government Performance and
Results Act of 1993 and needs to continue to address the challenges of
developing more outcome-oriented performance measures, linking
performance goals and budgetary resources, implementing processes to
verify and validate reported performance data, and addressing
crosscutting issues and programs that affect other Federal financial
institution regulatory agencies.
The OIG has played an active role in the evaluation of the
Corporation's efforts in this area and we have additional reviews
planned that will look at the Corporation's budgeting and planning
process and its strategic and annual planning process under the Results
Act.
THE OIG'S FISCAL YEAR 2005 BUDGET REQUEST
The proposed fiscal year 2005 OIG budget includes funding in the
amount of $29,965,000 or $160,000 less than fiscal year 2004. This
budget will support an authorized staffing level of 160, a further
reduction of 8 authorized staff (5 percent) from fiscal year 2004. The
budget must also absorb higher projected expenses for salaries,
employee benefits, and other costs that will increase due to inflation.
This will become the ninth consecutive year OIG budgets have decreased
after adjusting for inflation. The graph below shows the OIG's budget
history since I became the Inspector General in 1996.
The FDIC has been operating under an appropriated budget since
fiscal year 1998 in accordance with Section 1105(a) of Title 31, United
States Code, which provides for ``a separate appropriation account for
appropriations for each Office of Inspector General of an establishment
defined under Section 11(2) of the Inspector General Act of 1978.''
This funding approach is part of the statutory protection of the OIG's
independence. The FDIC OIG is the only appropriated entity in the FDIC.
The OIG's appropriation would be derived from the Bank Insurance Fund,
the Savings Association Insurance Fund, and the FSLIC Resolution Fund.
These funds are the ones used to pay for other FDIC operating expenses.
Budget by Strategic Goals and Major Spending Categories
For fiscal year 2005, the OIG developed the budget based on the
four strategic goals outlined in its Strategic Plan and discussed
earlier in this statement. The four strategic goals, along with their
associated budget dollars, are listed as follows:
The following chart shows the distribution of the OIG's budget by
major spending categories. Mostly, the OIG budget is comprised of
salaries and benefits for its employees and the necessary funding for
travel and training expenses.
As I discussed earlier, the OIG has significantly downsized not
only in the last few years, but also since 1996. The OIG has decreased
its authorized level of 215 staff for fiscal 2002 to 160 for fiscal
2005--about a 26-percent reduction. Since I became the FDIC Inspector
General in 1996, our staff has decreased from 370 to the current level,
or a total decrease of about 57 percent. Overall, FDIC staffing
declined from 9,151 to 5,300 from 1996 to 2003. The graph below shows
the authorized OIG staffing since the merger of RTC in 1996.
CONCLUDING REMARKS
Mr. Chairman and members of the subcommittee, I appreciate the
support and resources we have received through the collaboration of the
President, the Congress, this subcommittee, and the FDIC over the past
several years. As a result, the OIG has been able to make a real
difference in FDIC operations in terms of financial benefits and
improvements, and by strengthening our own operations and efficiency.
Our budget request for fiscal year 2005 is modest in view of the value
we add. Like many governmental organizations, we are faced with
succession planning challenges, which are of particular concern in a
downsizing environment. We have begun to address this issue through a
modest recruitment program; however, any further downsizing could have
a serious impact on this effort. We seek your continued support so that
we will be able to effectively and efficiently conduct our work on
behalf of the Congress, FDIC Chairman, and the American public.
Having just celebrated the 25th year since passage of the Inspector
General Act and the 15th anniversary of the FDIC OIG, I take pride in
my organization and the entire Federal Inspector General community and
its collective achievements. Building on this legacy, we in the FDIC
OIG look forward to new challenges and assisting the Congress and
corporate officials in meeting them.
______
AMERICAN BATTLE MONUMENTS COMMISSION
Prepared Statement of Major General John P. Herrling, USA (Ret),
Secretary
Mr. Chairman and members of the committee, thank you for the
opportunity to provide a written statement on the American Battle
Monuments Commission's fiscal year 2005 Appropriation Request. The
special nature of the American Battle Monuments Commission (ABMC)
places it in a unique and highly responsible position with the American
people. The manner in which we care for our country's Honored War Dead
is, and should remain, a reflection of the high regard in which we, as
a Nation, respect their service and sacrifice.
ABMC FOCUS
The American Battle Monuments Commission is responsible for
commemorating the services of American Armed Forces where they have
served since April 6, 1917 (the date of U.S. entry into World War I)
through the establishment of suitable memorial shrines; and for
designing, constructing, operating, and maintaining permanent American
burial grounds in foreign countries. In performing these functions, we
administer, operate, and maintain 24 permanent memorial cemeteries and
25 monuments, memorials, and markers in the United States and 15
countries around the world.
We have eight World War I and 14 World War II cemeteries located in
Europe, the Mediterranean, North Africa and the Philippines. All of
these cemeteries are closed to burials except for the remains of the
War Dead who may occasionally be discovered in World War I or World War
II battlefield areas. In addition, we are responsible for the American
cemeteries in Mexico City, established after the Mexican War, and in
Panama.
Presently, 124,917 U.S. War Dead are interred in these cemeteries--
30,922 of World War I, 93,245 of World War II and 750 of the Mexican
War. Additionally, 6,010 American veterans and others are interred in
the Mexico City and Corozal (Panama) American Cemeteries. Commemorated
individually by name on stone tablets at the World War I and II
cemeteries and three memorials on U.S. soil are the 94,135 U.S.
servicemen and women who were Missing in Action, or lost or buried at
sea during the World Wars and the Korean and Vietnam Wars.
ABMC SERVICES
We provide services and information to the public, friends, and
relatives who visit our cemeteries and memorials. This includes
information about grave and memorialization sites as well as location,
suggested routes and modes of travel to the cemeteries or memorials.
Immediate family members receive from us letters authorizing fee-free
passports for overseas travel to visit a loved one's grave or memorial
site. During fiscal year 2003, over 8 million people visited our
cemeteries and monuments worldwide; more than half of these visitors
were American citizens. Photographs of individual headstones and
sections of the Tablets of the Missing on which the service person's
name is engraved are also available. We mount these photographs on
large color lithographs of the cemeteries or memorials. In addition, we
assist those who wish to purchase floral decorations for placement at a
grave or memorial site in our cemeteries. A photograph of the in-place
floral arrangement is provided to the donor.
The care of these shrines to our Armed Forces requires a sizeable
annual program of maintenance and repair of facilities, equipment, and
grounds. This care includes upkeep of 131,000 graves and headstones; 73
memorial structures; 41 quarters and maintenance facilities; 67 miles
of roadways and walkways; 911 acres of flowering plants, fine lawns and
meadows; nearly 69 acres of shrubs and hedges and over 11,000
ornamental trees. Care and maintenance of these resources are
exceptionally labor intensive, therefore, personnel costs account for
over 53 percent of our budget for fiscal year 2004. Some of this
maintenance is performed by casual labor, in peak seasons, since
permanent cemetery staffs are not sized to provide all the required
maintenance during the peak-growing season. The remaining 47 percent of
our budget funds our engineering, maintenance, utilities, equipment,
and administrative costs.
ABMC CHALLENGES
The most significant challenge facing ABMC for the next several
years will be the relatively weak position of the U.S. dollar against
the Euro. This challenge affects our ability to move forward in
completing our core operating programs.
From fiscal year 1998 through fiscal year 2001, the dollar was
strong against foreign currencies with which we dealt. Due to this
strength, we were able to transfer foreign currency gains to our
Foreign Currency Fluctuation Account (FCFA) with the U.S. Treasury to
accommodate future losses. However, since fiscal year 2002, we have
been faced with significant losses with respect to the Euro, and have
transferred most of our prior year gains from our FCFA to offset our
operating accounts.
At the time preparations of the fiscal year 2005 budget began, we
anticipated that the dollar was gaining strength against the Euro. At
the time we submitted our budget to the Office of Management and Budget
(OMB), we did not believe we would require additional funding to offset
foreign currency losses because we expected the dollar to strengthen.
Among other indicators, the European Bank had given indications that it
would lower interest rates which would have weakened the Euro against
the dollar. That never happened and based on the current trend; we
anticipate that our FCFA balance will be depleted by the end of fiscal
year 2004. Unless we are able to replenish our FCFA, we will have to
reduce our spending in core operating programs to accommodate foreign
currency losses, thus slowing the rate that we modernize our
infrastructure and pushing out our timeline for achieving productivity
goals. It is most difficult to predict what the strength of the dollar
versus the Euro will be as we execute fiscal year 2005. However, if the
dollar ranges from where it is today to as much as 5 percent stronger,
we can anticipate losses of between $6 and $8 million in fiscal year
2005 that would have to be offset by realigning funding in all areas
including the infrastructure modernization and productivity programs.
Such actions could have a dramatic negative impact on our operations in
fiscal year 2005.
As an organization responsible for operating and maintaining
permanent burial facilities for our country's Honored War Dead, we do
not have the option of closing or consolidating cemeteries.
ABMC'S CONTRIBUTIONS TO THE PRESIDENT'S MANAGEMENT AGENDA
Within the context of the President's Management Agenda, we have
continued our efforts to achieve greater efficiency and effectiveness
in the areas where we do have alternatives.
Strategic Management of Human Capital
Such efforts demand the strategic management of human capital. We
analyze our work force to maximize the efforts of employees who deliver
our services.
In fiscal year 2000, ABMC and OMB conducted a joint productivity
study to determine if equipment modernization, leasing, outsourcing,
and automation improvements could increase the efficiency of our
cemetery workers. Industry experts from two major turf and grounds-
keeping equipment manufacturers participated in the study. They
concluded that opportunities existed to reduce work-hours associated
with labor-intensive operations, potentially offsetting the requirement
for additional personnel. During fiscal year 2001, we continued our
study and began procurement of modern, labor-efficient and safety-
related equipment identified in fiscal year 2000. During fiscal year
2002, 2003, and 2004 we continued to replace outdated equipment,
enhance our automation systems, and make improvements in our
operations. In order to continue productivity program enhancements, we
are requesting $1.0 million for fiscal year 2005.
Managing our human capital demands that we place the right person
with the right skills in every position. In fiscal years 1998 and 1999,
we undertook the first comprehensive survey of our overseas personnel,
their position descriptions, and workloads since the early 1980's. This
survey identified a variety of discrepancies in how we staffed our
cemeteries. We took corrective action, and with the concurrence of OMB,
ensured consistency in staffing. In fiscal year 2002, we began a
worldwide manpower study which will further identify and
comprehensively outline our manpower requirements, position
descriptions, workloads and manpower distribution to ensure our work
force is properly deployed. We expect this project to be completed
during fiscal year 2004.
A key element of recruiting and retaining a talented work force is
fair compensation. To ensure equal pay for equal work we converted the
European Region from our legacy Cemetery System for classifying and
paying most of our foreign employees to the standard Foreign Service
National (FSN) pay system. This FSN system is used by State Department
and other Federal departments employing foreign nationals overseas.
This will ensure that we have a pool of well qualified personnel to
fill our critical positions, now and in the future.
Competitive Sourcing
We have continued efforts to avoid using our work force to perform
tasks that are not inherently governmental and are readily available in
the commercial market place. In this area we are well advanced. When
Congress directed us to establish a World War II Memorial, we
outsourced the design, construction, data management, fulfillment
processing, customer servicing, and public relations.
The success of this effort has been astonishing. It will soon
result in the first national memorial dedicated to the 16 million who
served in uniform during the war, the more than 400,000 who gave their
lives, and the millions who supported the war effort from the home
front.
Our competitive sourcing initiatives did not stop there.
Contributing to our efforts to improve financial management, in April
2000, we contracted with a software implementation consultant to assist
in the selection and development of an automated, integrated accounting
system that conforms to regulatory requirements. Our new commercial-
off-the-shelf system became operational in October 2001. The use of a
competitive source contractor allowed our government employees to focus
on our daily mission while the contractor ironed out the normal
wrinkles associated with implementing a new system. We are pleased with
the overall results and will continue to upgrade our capabilities so
that we will be among the leaders in financial management in the
Federal Government.
In addition, our Infrastructure Modernization Program (IMP) has
made extensive use of outsourcing to ensure that highly qualified firms
and individuals were contracted to perform engineering analysis and
reviews. Most construction and engineering projects at ABMC facilities
are contracted out, since these projects are usually unique and beyond
the capability of our limited staff.
Our cemeteries and their infrastructure range from 45 to 80 years
old. We began an IMP in fiscal year 2001 to examine in detail the
infrastructure of our facilities and bring them up to today's
standards. Through this program we can avoid future uncertainty, work
in a programmed and efficient manner, and protect our investments in
facilities. The first phase of the IMP consisted of studies to identify
deficiencies in the various aspects of our infrastructure. In the
second phase, corrective actions are performed. During fiscal year
2004, we are dedicating $2 million to IMP, and are requesting $2
million for fiscal year 2005 to continue these essential projects in
addition to the $1.8 million needed to continue normal engineering and
maintenance operations.
Improved Financial Performance
Since 1998, the ABMC has been required to produce full financial
statements. In addition, these CFO Act financial statements are
independently audited by the Comptroller General. Each year, ABMC has
earned an unqualified opinion from GAO on our annual financial audits.
We recognize that improved financial performance is more than
achieving an unqualified audit opinion. It is about putting useful and
timely information in the hands of leaders with which they can make
informed decisions. Our new accounting system moves us toward that
goal. Looking to the future, we have included funding in our fiscal
year 2005 budget to continue our transition to a web-based system that
will enhance our ability to make such information more readily
available to our decision-makers.
Closely related to efforts to expand e-government, in partnership
with the Department of the Treasury, we converted to full electronic
funds transfer banking for all foreign currency disbursements except
Tunisian Dinars. Prior to this, we maintained U.S. funds in separate
overseas foreign currency bank accounts under delegated disbursing
authority from the Treasury. Now disbursements flow electronically from
our accounting system through the Treasury's Kansas City Financial
Center to the overseas bank account of our vendors and employees. The
initial conversion to this electronic capability was not as seamless as
expected. However, the process is now stabilized and is allowing
quicker payments for customers, eliminating funds held outside the
Treasury in foreign bank accounts, and implementing real-time
automation to worldwide funds transfers.
Our new integrated accounting system and our successes on
international electronic funds payment and full financial audits are
moving the ABMC toward new levels of financial excellence. We look
forward to the challenges of fiscal year 2005.
Expanded E-Government
Our efforts to expand e-government go beyond the use of electronic
funds transfers overseas. They include how we deliver our services to
our customers--the very heart of what we do.
Over the last several years, ABMC has expanded access to valuable
information through the use of on-line tools. Our Internet Web site
allows visitors to gather information on our organization, cemeteries,
memorials, and their locations. To aid in our internal operations, our
European Region maintains our intranet web site which provides details
on our ongoing operations. In addition, we made the WWII Registry
developed in conjunction with the World War II Memorial project a web-
based system to make it accessible to a broader audience than those who
visit the memorial itself. We eventually plan to convert the dated
video system at the Korean War Veteran's Memorial with a similar web-
based database of Korean War Dead.
We are also supporting the administration's efforts to reduce the
number of payroll providers within the Federal Government. In December
2003, we converted our internal, manual payroll operations for U.S.
General Service personnel to a web-based system provided by the General
Services Administration (GSA). We are currently in the process of
converting the Foreign Service National (FSN) payroll operations with
an expected completion date later this calendar year.
Budget and Performance Integration
We are pressing forward in the budget process to ensure that our
funding requests support the objectives of the agency and the
President's Management Agenda. Our budget clearly ties to our Strategic
and Annual Performance Plans. In addition, these plans directly link to
the Commission's Management Discussion and Analysis (MD&A) statements
which are required as an integral part of the annual audit conducted by
the Comptroller General.
To further improve the link between budget and performance we are
studying the implementation of a Cemetery Evaluation Review System.
Once fully implemented we expect to use this to measure the impact of
applied resources to our cemeteries in order to better focus our
efforts.
OTHER IMPORTANT PROJECTS
Normandy Interpretive Center
Congress, through Public Law 107-73, provided $5.0 million to ABMC
for fiscal year 2002, specifically for the partial cost of design and
construction of a new interpretive and visitor center at the Normandy
American Cemetery in France. In fiscal year 2003 and fiscal year 2004,
Congress provided an additional $4.0 million and $9.0 million
respectively to continue this project. We developed a contract proposal
and have begun the initial pre-design phase. The President's Budget
includes $9.1 million in our fiscal year 2005 request, as suggested by
Congress in our fiscal year 2004 appropriation, to complete funding for
this important project. Our objective is to achieve an appropriate and
comprehensive design and begin construction during fiscal year 2005.
Vietnam Veterans Memorial Plaque
Public Law 106-214 directed ABMC to oversee the placement of a
plaque ``within the Vietnam Veterans Memorial containing an inscription
intended to honor those Vietnam veterans who died after their service
in the Vietnam War, but as a direct result of that service, and whose
names are not otherwise eligible for placement on the Memorial Wall.''
The law clearly stated that Federal funds may not be used to design,
procure, or install the plaque. Sufficient private funding was received
to begin installation of the plaque in March 2004. Work should be
completed by summer 2004.
World War II Memorial
For the past 11 years much of the Commission's attention has been
focused on designing and constructing a World War II Memorial on the
National Mall in Washington, DC. After 8 years of planning, 6 years of
public debate, and 4 years of fund-raising, construction of the
memorial began in September 2001. The memorial will be dedicated on May
29, 2004.
In completing this project we ensured that the memorial and its
components were designed for the maximum service life and for effective
maintainability. We also contracted for repair work on the adjacent
Reflecting Pool as an added protection against, and prevention of water
seepage into the memorial.
The total estimated cost of the memorial project is $178.3 million,
which includes site selection and design, construction, a National Park
Service maintenance fee required by the Commemorative Works Act,
groundbreaking and dedication ceremonies, fund-raising and
administration of the project from its inception in 1993 through
completion in 2004. We have received $195 million in cash and pledges
from all sources. Congress directed that any funds remaining after all
project costs have been paid will remain in the World War II Memorial
Trust Fund to be administered by ABMC. The funds may be used solely to
benefit the World War II Memorial.
ABMC'S COMMITMENT
Since 1923 the American Battle Monuments Commission's memorials and
cemeteries have been held to a high standard in order to reflect
America's continuing commitment to its Honored War Dead, their
families, and the U.S. national image. The Commission intends to
continue to fulfill this sacred trust while ensuring the prudent
expenditure of appropriated funds.
The American Battle Monuments Commission appropriation request for
fiscal year 2005 is $41,100,000.
______
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Agency for Toxic Substances and Disease Registry
Prepared Statement of Henry Falk, M.D., M.P.H., Director, Agency for
Toxic Substances and Disease Registry and National Center for
Environmental Health, Centers for Disease Control and Prevention,
Department of Health and Human Services
Mr. Chairman, Senator Mikulski, other distinguished members of the
subcommittee, thank you for the opportunity to provide this testimony
on behalf of the Agency for Toxic Substances and Disease Registry
(ATSDR).
The President's budget for fiscal year 2005 includes $76,654,000
for ATSDR. This funding will support the Agency's ongoing activities
and provide additional support for two critical programs.
This testimony will address: (1) ATSDR's achievements over the past
year in carrying out its mission under Superfund to evaluate and
prevent adverse health impacts from exposure to hazardous substances;
(2) ATSDR's plans for fiscal year 2005, emphasizing programs to enhance
understanding of the health impacts from exposures to asbestos-
contaminated vermiculite ore originating in Libby, Montana, distributed
to more than 200 facilities across the United States; and (3) steps
taken to maximize the ATSDR's public health impact and efficiency
through a partial administrative and management consolidation with the
National Center for Environmental Health of the Centers for Disease
Control and Prevention (CDC).
ATSDR'S ACHIEVEMENTS IN FISCAL YEAR 2003
Last year was busy and productive for ATSDR. The services ATSDR
provides to communities help to identify and address possible
associations between exposures to hazardous substances in the
environment and health problems. These services are available and
accessible to the full spectrum of communities, from remote rural areas
to heavily populated urban neighborhoods, that have been scarred by
industrial hazardous waste sites, the legacy of mining, or contaminated
drinking water.
Leveraging ATSDR's Resources Through Partnerships
In 2003 ATSDR continued to leverage its resources through a strong
emphasis on partnerships with a variety of entities including other
Federal agencies, State, and local health departments, universities,
and the industrial sector. Partnerships with State health departments
enhance the Agency's ability to respond in a timely manner to the
hundreds of community requests and releases of hazardous substances
that threaten public health each year. Partnerships also serve as a
mechanism for building Federal, State, tribal, and local public health
capacity to respond to public health concerns related to environmental
contamination.
In fiscal year 2003, ATSDR provided over $10 million to fund
cooperative agreements with 30 State health departments, one
commonwealth, and one tribe. ATSDR worked closely with these partners
to complete 120 public health assessments of potential health threats
from environmental exposures, including over 50 public health
assessments related to sites on the United States Environmental
Protection Agency's (EPA) National Priorities List. ATSDR and its
partners also issued more than 230 health consultations and numerous
responses to requests for technical assistance from State or Federal
agencies, members of Congress, and the public. In addition, ATSDR and
partners worked on more than 50 health studies in various phases of
development and implementation. Health studies are peer-reviewed public
health research activities that serve the dual functions of providing
important information to communities, and advancing scientific
understanding of the relationship between exposures to hazardous
substances and particular health outcomes. Each of these categories of
activities draws on the unique mixture of expertise at ATSDR that
bridges the health and environmental fields.
In all aspects of its work, ATSDR pays particular attention to the
unique needs of vulnerable subpopulations such as children, pregnant
women, and economically disadvantaged people that may be exposed to
contaminants from multiple sources. For example, ATSDR and EPA
currently fund 11 Pediatric Environmental Health Specialty Units,
located at academic medical centers throughout the United States.
Through these units, pediatricians with expertise in environmental
health are available to consult with physicians and families concerning
children who may have been exposed to mercury, lead, pesticides, or
other hazardous substances. The pediatric units also offer referrals,
and training for health care professionals related to pediatric
environmental medicine.
ATSDR also has a longstanding cooperative agreement with the
Minority Health Professions Foundation (MHPF) to conduct research to
fill gaps in our knowledge about the effects of hazardous substances on
human health. The program provides students at MHPF institutions the
opportunity to conduct groundbreaking research in toxicology,
epidemiology, and environmental assessment. For example, one recent
study found that newborns may be at risk for effects from exposure to
maternal blood lead levels of less than 10 micrograms per deciliter,
CDC's level of health concern.
Terrorism Preparedness and Response
Through more than 20 years experience in addressing public health
aspects of responding to chemical releases at Superfund sites, ATSDR
has developed considerable expertise in toxicology and other areas
directly applicable to chemical terrorism preparedness and response.
In recognition of its emergency preparedness and response
capabilities, ATSDR often is looked to by other Federal agencies for
assistance related to training, environmental sampling, medical
toxicology and enhancing collaboration between the emergency response
and the public health and medical communities. For example, in April of
2004 the Chemical Safety and Hazard Investigation Board requested
assistance from ATSDR in coordinating with the medical community in
connection with a large release of allyl alcohol (used in the
manufacture of polymers, pharmaceuticals, and pesticides) from a
manufacturing plant in Dalton, Georgia, which resulted in the
evacuation of several hundred citizens. In particular, the Board had
concerns about inconsistencies in the number of people reporting to the
local hospital for treatment. In response, ATSDR emergency response and
other personnel traveled to the location of the chemical release, and
were able to determine the number of people accessing medical care as a
result of this event, and the severity of their health complaints. The
preparedness and response capabilities that enabled ATSDR to contribute
in responding to this chemical release are the same as would be needed
in responding to a terrorism-related or other intentional chemical
release.
In addition, ATSDR regional staff, located in each of the 10 EPA
regional offices, work with EPA staff and State partners on a daily
basis to prepare for emergencies and to conduct response exercises. The
capacity of ATSDR regional staff to assist in an emergency is enhanced
through ATSDR's cooperative agreement with the American College of
Medical Toxicology (ACMT), under which local medical toxicologists are
available to consult with ATSDR on short notice in planning for and
responding to chemical emergencies. In addition, in coordination with
ATSDR, ACMT has provided several informative educational sessions on
``Chemical Agents of Opportunity'' and on responding to chemical
emergencies, for State and local partners, as well as ATSDR, CDC, EPA,
the Department of Justice, other Federal agencies, and congressional
staff.
ATSDR also provides leadership and subject-matter expertise for CDC
in response to weapons of mass destruction, chemical, radiological and
bio-environmental contamination events. For example, an ATSDR medical
toxicologist consulted with the State of South Carolina, U.S. Postal
Service and EPA following the mailing of the toxin ricin last year.
Teams are always on call for deployment in the event of a terrorist
incident or other chemical emergency.
Building on ATSDR's Experience and Expertise at Superfund Sites
Libby, Montana
ATSDR has testified in past years regarding its extensive health
screening program and related studies documenting the severe health
impacts resulting from exposure to asbestos-contaminated vermiculite
ore mined at the W.R. Grace mine in Libby, Montana. On August 26, 2003,
the Federal District Court in Missoula, Montana ruled that the United
States is entitled to recover the entire $11.3 million in costs
incurred by ATSDR through December 31, 2001, as well as future costs
incurred by ATSDR after that date, in responding to asbestos
contamination and evaluating and addressing the public health impacts
of exposure to asbestos from this mine.
ATSDR is continuing activities related to Libby, including: (1)
funding the State of Montana to conduct screening and surveillance of
the at-risk population of the Libby community; (2) the Libby Tremolite
Asbestos Registry; (3) health education for communities and health care
providers about vermiculite and asbestos exposure; (4) grants to
university-based researchers to study disease progression in former
vermiculite workers so that timely interventions can be developed; and
(5) a pilot mesothelioma surveillance program in New York, New Jersey,
and Wisconsin.
As discussed later in this testimony, ATSDR's work in Libby laid
the foundation for ATSDR's fiscal year 2005 proposal related to
evaluating the health threats to former workers and to their family
members at facilities across the country that processed asbestos-
contaminated ore from Libby.
Reducing Childhood Lead Exposure
The adverse impacts of lead exposure on the developing child are
well established. ATDSR, in conjunction with State and local public
health officials, is working to reduce childhood exposure to lead at a
number of Superfund sites. For example, last year ATSDR expanded the
scope of its longstanding involvement at the Tar Creek Superfund site
in Ottawa County, Oklahoma. ATSDR continues to provide support to the
Oklahoma State Department of Health and the Ottawa County Health
Department for blood lead screening in children and community education
on measures to prevent exposure to lead. In addition, ATSDR is
reviewing available environmental data to determine significant
pathways of exposure to lead, and assessing the relationship of blood
lead data to potential environmental lead sources such as residential
soil and waste piles of mine tailings.
In Herculaneum, Missouri, ATSDR and the Missouri Department of
Health Services are providing public health education and conducting
other activities to address a public health threat posed by
contamination from a lead smelter. Initial blood-lead screenings
revealed high levels of lead in the blood of young children. However,
data from follow-up testing of those children in 2002, analyzed by
ATSDR in 2003, revealed dramatic declines in the percentage of children
with blood lead levels equal to or above 10 micrograms per deciliter,
the CDC recommended level of action. For example, in 2001, 28 percent
of children younger than 6 years of age who were tested had blood lead
levels equal to or above 10 micrograms per deciliter. By 2002, that
percentage had been cut in half, to 14 percent. Moreover, in 2001, 45
percent of children younger than 6 years of age and living closest to
the lead smelter had blood lead levels at or above the 10 micrograms
per deciliter level of action. By 2002, the percentage had been reduced
to 17 percent.
In May of 2003, ATSDR and the Missouri Department of Health and
Senior Services collaborated in convening a workgroup to consider
options for future health studies in Herculaneum, Missouri. The
workgroup recommended a two-phase approach, first to reevaluate
existing environmental and blood lead data, and second to study the
health effects of lead in the community. Protocol development and study
details are expected to be complete by the end of fiscal year 2004,
with data collection slated to begin in the first quarter of fiscal
year 2005.
ATSDR also contributed to reducing childhood lead levels in
children near the Bunker Hill Superfund site in Kellogg, Idaho, where
blood lead levels were among the highest of children tested near any
Superfund site. Beginning in 1986, ATSDR funded a lead-intervention
program of health education, health care provider training and blood
lead screening, carried out by the local health department. Long-term
monitoring shows that the blood lead levels in children 6 years of age
or younger living near the Bunker Hill site decreased to levels found
in the United States general population. The Panhandle Health District
reported to ATSDR that its 2003 screenings of children continue to
reveal blood lead levels within the program goals.
Studying Health Impacts of Exposure to Volatile Organic
Compounds (VOCs)
ATSDR is undertaking activities at several Superfund sites to more
fully explain the relationship between exposures to VOCs in drinking
water, and adverse health outcomes.
For example, in North Carolina ATSDR is engaged in an extensive
study of certain birth defects and childhood leukemia among families
who lived on the base at Camp Lejeune. The study is focused on
potential in utero exposures of children born to women who lived at the
base while pregnant between 1968 and 1985. The study was initiated
because during this time period trichloroethylene (TCE, a degreaser)
and tetrachloroethylene (PCE, a dry-cleaning solvent) were found in the
drinking water supply for some of the family base housing. Earlier
studies involving Superfund sites in Woburn, Massachusetts and Dover
Township, New Jersey, suggested an elevated risk of childhood leukemia
in children with prenatal exposure to VOCs.
The first phase of the study at Camp Lejeune included a survey to
identify children with specific birth defects and childhood cancers.
During the first phase, 12,598 surveys were completed. The birth
defects and cancers reported in those surveys are being verified, with
permission from the families, through searches of medical records.
In July 2003, ATSDR issued an interim report on Camp Lejeune
recommending that a case-control study be conducted to examine the
relationship between exposure to the contaminated drinking water in
women who lived on the base while pregnant, and selected birth defects
and childhood cancers in their children. ATSDR developed the study
protocol and is acquiring data necessary for historic reconstruction of
the base drinking water system through computer modeling. This modeling
will enable ATSDR to identify which base housing units received the
contaminated water and is necessary for determining whether there is an
association between the contaminants in drinking water and certain
birth defects and childhood cancers.
ATSDR's experience with evaluating exposure to VOCs in Dover
Township, New Jersey, and more recently at Camp Lejeune, has
contributed to efforts over the past year in the Village of Endicott,
in Broome County, New York. ATSDR is assisting the New York State
Department of Health (NYS DOH) in an effort to address health concerns
of residents related to potential exposure to VOCs emanating from a
groundwater plume at the IBM site in Endicott. As first steps, the NYS
DOH is evaluating the incidence of certain conditions in newborns whose
parents lived in the study area at the time of the infants' births, and
estimating the incidence of all types of cancer, including childhood
cancer, for the areas in Endicott potentially impacted by VOC vapors in
indoor air.
Studying Health Impacts of Exposure to Polychlorinated
Biphenyls (PCBs) and Dioxins
ATSDR funds research by State universities and health departments
under the Great Lakes Human Health Effects Research Program (GLHHERP).
GLHHERP grantees conduct epidemiologic research and educational
programs to inform residents about exposure to persistent toxic
substances, including polychlorinated biphenyls (PCBs). This program
has helped inform residents about fish-consumption practices to avoid
unsafe exposures, especially for children, the elderly, and women of
childbearing age. ATSDR also is supporting the development and
implementation of a 3-year pilot program in the Upper Peninsula of
Michigan, to educate vulnerable populations about fish advisories and
to assess the effectiveness of advisories. Under this pilot program, a
State university and intertribal council in Michigan will take measures
to increase awareness about exposures to toxic substances from eating
contaminated fish, and to evaluate observance of fish consumption
advisories among American Indian communities, anglers and their
families, and others who rely on Great Lakes fish as a subsistence
food.
Building on its foundation from research regarding exposure to PCBs
in the Great Lakes, ATSDR is supporting research on health impacts of
PCB exposure at a Superfund site in Anniston, Alabama. On the basis of
blood data reviewed by ATSDR, Anniston residents have some of the
highest levels of exposure to PCBs found in a non-occupational setting
in the United States. In 2003, ATSDR awarded $1.5 million to
Jacksonville State University to conduct, with a consortium of
researchers and community members, a multiyear study of the potential
health effects of PCB exposure among residents of Anniston. Study
protocols and initial data collection are scheduled to be completed
during fiscal year 2004, with data analysis beginning in fiscal year
2005.
Health Registries
One of ATSDR's responsibilities under Superfund is to establish and
maintain registries of diseases and of people exposed to toxic
substances. In recent years ATSDR has seen an increase in recognition
of the important function served by registries and a rise in the demand
for its expertise in developing and managing registries. ATSDR embarked
on three new and significant registries in the past year: (1) the
Tremolite Asbestos Registry; (2) the World Trade Center Health
Registry; and (3) the Rapid Response Registry.
In 2003, ATSDR initiated the Tremolite Asbestos Registry, a
registry of people exposed to tremolite asbestos from Libby, Montana.
The registry is expected to enroll 10,000 to 15,000 people, including
former Libby vermiculite mining and mill workers, family members and
others who shared a residence with a vermiculite worker, and community
members who meet eligibility criteria. The Tremolite Asbestos Registry
will provide a means to locate and provide information to participants
to ensure that they and their health care providers receive the latest
medical recommendations and research findings pertaining to asbestos-
related diseases. The registry will also be an invaluable resource for
future research related to the health impacts of asbestos exposure.
In September of 2003, the New York City Department of Health and
Mental Hygiene (NYC DOHMH), in partnership with ATSDR, began data
collection for the World Trade Center Health Registry. Data collection
for the Registry will continue for 1 year. The purpose of the Registry
is to provide a central database for research to assess injuries and
other physical and mental health effects among people exposed to the
World Trade Center disaster. Information obtained will provide a more
complete picture of health effects among a broad spectrum of the
impacted population, including residents, office workers, school
children, and emergency responders. Approximately 79,810 potential
registrants have been identified through employee lists and telephone
and website registrations. As of April 20, 2004, interviews of 31,921
people had been completed.
ATSDR developed the Rapid Response Registry to provide the capacity
to timely identify and obtain information in a timely fashion from
persons potentially exposed to environmental chemicals in an emergency
event. Having obtained prior approval of the registry and associated
questionnaires, and by training staff in its rapid use and deployment,
we will be able to significantly reduce the time needed to collect
potentially time-sensitive information in an emergency. Teams, in
collaboration with State and local government agencies and private
response organizations, will identify and enroll exposed and
potentially exposed individuals within hours of an incident, to help
document their presence at or near an emergency event. This
information, maintained in a central registry, will provide health
officials with essential information necessary for both short-term and
long-term follow-up with exposed or injured individuals, or their
survivors. Contact information will enable officials to provide
information to affected individuals about possible exposures, potential
health impacts, updates, and available educational information, and
will allow for follow-up contacts by health officials to assess current
and future medical needs.
PRIORITY PROJECTS FOR FISCAL YEAR 2005
The President's fiscal year 2005 budget request includes an
increase of approximately $3 million to support two critical
initiatives.
Evaluating and Tracking the Health Consequences of Exposure to Asbestos
Results of ATSDR's medical screening program and studies of
residents in Libby, Montana highlight the seriousness of the health
threat from exposure to the asbestos-contaminated vermiculite ore mined
in Libby. ATSDR's medical screening program in Libby revealed that
nearly 18 percent of the approximately 7,300 people evaluated have
abnormalities of the lining of the lung consistent with exposure to
asbestos. Among workers and household contacts evaluated, the
prevalence of these abnormalities was 51 percent and 26 percent,
respectively. ATSDR's review of 20 years of death certificates showed
that mortality in the Libby area due to asbestosis was 40 to 80 times
higher than expected, and lung cancer mortality was 20 percent to 30
percent higher than expected. Mortality due to mesothelioma was also
elevated.
The vermiculite ore mined in Libby, Montana was shipped to more
than 200 sites around the United States for processing. ATSDR and its
State partners are conducting detailed exposure pathway evaluations and
health statistics reviews at 28 of the highest priority sites. These 28
priority sites were selected either because EPA determined further
action was necessary to address current contamination, or because a
site processed 100,000 tons or more of vermiculite from the Libby mine.
The findings from these priority sites will be used to inform future
decisions related to evaluation of the remainder of the more than 200
sites.
To date, ATSDR and State partners have completed evaluations for 7
of the 28 priority sites, including sites in Beltsville, Maryland,
Denver, Colorado, Santa Ana, California, West Chicago, Illinois, and
Minot, North Dakota. Each of the 7 completed health consultations
concludes that former workers were exposed to significantly elevated
levels of asbestos from vermiculite exfoliation (``popping'')
operations: historical data indicate airborne fiber levels within these
facilities at concentrations as high as 700 times the Occupational
Safety and Health Administration's current permissible exposure limit
for asbestos. ATSDR expects health consultations for the remainder of
the 28 sites to be completed this year.
Each of the 7 health consultations includes a recommendation to
identify and locate former workers and their household contacts for the
purpose of evaluating potential health effects and providing health
education. Many workers and household contacts may be unaware of their
exposure, and many have moved away from the location where the
processing occurred. Knowledge of past exposure may be beneficial for
implementation of proactive public health interventions, such as
smoking cessation, which are known to be effective to some extent in
limiting adverse health impacts of asbestos exposure.
Fiscal Year 2005 Initiative
Of the approximately $3 million increase for ATSDR in the
President's budget request, $2.5 million is requested for pilot medical
screening related to a subset of the 28 priority sites. ATSDR will
identify and locate former workers and their household contacts at each
pilot site. Eligible workers and household contacts will be offered
baseline medical screening (such as pulmonary function testing and
chest X-rays) to evaluate the presence of asbestos-related pleural
abnormalities. In addition, ATSDR will expand the Tremolite Asbestos
Registry to enroll eligible persons from sites outside of Libby,
Montana, and will offer health education on managing risks associated
with asbestos exposure. Further evaluation and follow-up of former
workers from other priority sites may be conducted in the future, if
indicated, on the basis of pilot site results.
Supporting the World Trade Center Health Registry
Another ATSDR priority for fiscal year 2005 is to continue support
of the World Trade Center Health Registry. The Registry is at this
point the second largest of its kind in United States history, behind
the Three-Mile Island Registry. Ultimately, data from the health
registry on the health of registrants exposed to smoke, fumes, and
other hazardous substances released by the World Trade Center collapse,
will enable researchers to observe exposure and health patterns that
may not be apparent to individual physicians. The Registry will enable
the NYC DOHMH to contact members of the exposed population with
educational and other information.
With the additional funds, ATSDR and the NYC DOHMH can continue the
core functions of the Registry, including maintaining a Registry office
in New York City; retaining trained staff to maintain the database,
conducting follow up interviews and community outreach activities;
performing basic data analyses; developing quarterly reports;
responding to public inquiries; and disseminating findings and health
alerts as necessary.
ATSDR will use $500,000 of the approximately $3 million increase in
the President's fiscal year 2005 budget, along with $1 million of base
funds, for a total spending level of $1.5 million to cover the entire
expected cost of this project for fiscal year 2005. This will continue
the maintenance work of the World Trade Center Health Registry,
supported in fiscal year 2004 by $500,000 from ATSDR and a commitment
of $1.5 million under a Memorandum of Understanding with EPA.
MAXIMIZING ATSDR'S IMPACT AND EFFICIENCY THROUGH CONSOLIDATION
In January of 2003, Dr. Julie L. Gerberding, Director of the CDC
and Administrator of ATSDR, issued a Statement of Intent committing to
the administrative and management consolidation of ATSDR and the CDC's
National Center for Environmental Health (NCEH) to achieve a
coordinated structure and common leadership. The consolidation is based
on major concepts in the December 2000 Report Shared Vision for
Environmental Public Health at CDC and ATSDR. The purpose of the
consolidation is to enhance the environmental public health programs
and activities at CDC and ATSDR, by building on the complementary
expertise of NCEH and ATSDR.
ATSDR continues to be a separate Agency and implements its
authorities under Section 104 of CERCLA through its existing Divisions,
which have not been changed by the consolidation. The ATSDR Office of
the Assistant Administrator and the NCEH Office of the Director were
merged to join like functions while maintaining the existing
organizational construct of the Divisions and Program Offices within
each respective organization.
I am pleased to report that the Department of Health and Human
Services approved our proposed organizational structure, and
implementation of the consolidation is going very well. Key positions
in the consolidated Office of the Director have been filled. Personnel
who performed similar administrative duties in the separate
organizations are now working together in consolidated offices.
ATSDR's funding continues to be maintained separately from NCEH and
tracked in accordance with appropriations, budget, and accounting
requirements. ATSDR has hired an outside accounting expert to provide
recommendation on how best to allocate the costs of the joint Office of
the Director.
We have also created a joint terrorism preparedness and response
coordinating office to oversee terrorism and emergency activities
across NCEH and ATSDR. This has led to improvements in our preparedness
and ability to respond to events promptly. For example, NCEH and ATSDR
physicians and other staff members receive joint training on emergency
health care methods and techniques. Joint training is underway on the
care and treatment of people exposed in radiation emergencies. Our
response to the recent ricin incident in the Senate Office Building
benefited from a team that included ATSDR regional and headquarters
staff, as well as NCEH medical toxicologists.
ATSDR has also made a number of structural changes, including
creation of a new division, the Division of Regional Operations, which
previously operated within the Office of the Director. This change will
result in additional support of front-line staff and more efficient and
effective services for State and local health departments.
We expect that the administrative and management consolidation of
ATSDR and NCEH will enhance environmental health programs and services
in this country. Through improved coordination and increased
efficiencies, the consolidation will allow us to redirect resources to
front-line public health service.
Thank you for the opportunity to provide this testimony.
______
NEIGHBORHOOD REINVESTMENT CORPORATION
Prepared Statement of Kenneth D. Wade, Executive Director
Neighborhood Reinvestment Corporation is pleased to submit its
testimony for the record. This testimony is based on the experience and
considerable successes of 228 community development organizations
serving nearly 2,500 urban, suburban, and rural communities. These
nonprofit partnerships are collectively known as the NeighborWorks
network and operate in 49 States, the District of Columbia, and Puerto
Rico.
In January, Neighborhood Reinvestment Corporation's Board of
Directors appointed Kenneth D. Wade as its fourth executive director.
While he is new to the position of Executive Director of Neighborhood
Reinvestment, Ken Wade has been actively engaged in the senior
management of the Corporation for over 13 years. Most recently, he held
the position of Director of National Initiatives, Programs and
Research, and previously the position of New England District Director.
Under the leadership of our former executive director, Ellen Lazar, Ken
was closely involved in developing the Corporation's strategic plan
that will continue to guide the work of Neighborhood Reinvestment.
Thanks to his career experiences with youth programs and neighborhood
revitalization in Boston's communities, Ken understands the unique
challenges facing America's communities. Also, having served at the
neighborhood level, he has a personal understanding and appreciation of
the support provided by Neighborhood Reinvestment Corporation, with its
commitment to providing timely and flexible assistance to its national
network of locally-controlled NeighborWorks organizations.
The Neighborhood Reinvestment Corporation was created by Congress
in 1978. Since then, Neighborhood Reinvestment and its affiliated
NeighborWorks network have worked to expand housing opportunities for
low- and moderate-income Americans, to revitalize distressed
communities, and create a network of excellence in the community
development field. In fiscal year 2003, the NeighborWorks system
leveraged its $104 million appropriation to generate nearly $2 billion
of direct investment in communities. These funds helped more than
83,000 families obtain and maintain safe and affordable rental and
homeownership units and provided over 75,000 families with high-quality
pre- or post-purchase homebuyer educational services. This could not
have been accomplished without this subcommittee's support. For fiscal
year 2004, Neighborhood Reinvestment Corporation received an
appropriation of over $114 million, and Neighborhood Reinvestment looks
forward to reporting our outcomes to you next year.
OVERVIEW OF THE NEIGHBORWORKS SYSTEM
Over its 25-year history, the NeighborWorks System has proven to be
an increasingly effective and efficient vehicle for leveraging
significant private-sector resources in support of community
revitalization and affordable-housing efforts. Comprised of
Neighborhood Reinvestment Corporation, local nonprofit organizations in
our NeighborWorks network, and the specialized secondary market
Neighborhood Housing Services of America, the NeighborWorks System
relies on public-private partnerships and uses modest Federal funds to
leverage significant private investment. Innovations that are generated
in response to locally identified needs are a hallmark of the
NeighborWorks System.
Neighborhood Reinvestment Corporation
Neighborhood Reinvestment Corporation's partnerships with local
housing and community development organizations support residents,
businesses, and local governments in their efforts to revitalize their
communities and provide affordable housing opportunities for low- and
moderate-income families. Neighborhood Reinvestment engages in four
core activities:
--Build and Sustain a Network of Excellence.--The Corporation
provides competitive grant funding, training, technical
assistance and access to specialized secondary market services
to NeighborWorks organizations. These organizations are closely
monitored and thoroughly reviewed to maximize both the
efficiency and effectiveness of the system and steward Federal
dollars.
--Foster Innovation.--The Corporation nurtures new ideas from within
the NeighborWorks network and the affordable housing and
community development field. By strategically allocating
resources, the Corporation has developed innovative programs
such as the NeighborWorks Campaign for Homeownership and the
Multifamily and Rural Initiatives.
--Build Skills and Performance in the Housing and Community
Development Field.--The Corporation operates national
NeighborWorks Training Institutes in major cities throughout
the United States open to anyone involved in affordable housing
and community revitalization, particularly private- and public-
sector practitioners and community leaders.
--Leverage Strategic Partners and Resources.--Founded on a three-
component partnership model of government, private corporations
and residents, Neighborhood Reinvestment accomplishes its
mission by using its Federal appropriation to leverage private
investment and involvement.
These activities individually and collectively build the
productivity and strength of the NeighborWorks network and the broader
community development field.
NeighborWorks Network
NeighborWorks organizations are located in our Nation's largest
cities, as well as suburban neighborhoods, small towns and rural areas.
Regardless of their target communities, each of the 228 NeighborWorks
organization operates under the direction of a local board of directors
comprised of local residents, lenders and other business leaders, and
representatives from local government. This three-pronged, public-
private partnership approach to community development is crucial to the
NeighborWorks system's successes. To achieve their locally-identified
goals, members of the NeighborWorks network utilize the laboratory
environment that Congress intended to achieve creative strategies,
collaborate on best practices, and develop flexible financing
mechanisms.
Each NeighborWorks organization is responsible for setting its own
strategies, raising its own funds, and delivering its own services.
Most NeighborWorks organizations also operate a revolving loan fund to
meet community credit needs such as gap financing for home purchase
loans, second mortgages for home rehabilitation or repair, small-
business loans, and loans for the acquisition and development of
residential and commercial real estate. The NeighborWorks network is
the leading national community development nonprofit network with
extensive expertise in designing, originating, and servicing small non-
conventional loans to lower-income families. However, clients often
require more than a loan. NeighborWorks organizations also provide
extensive training, counseling and personalized assistance. This
concentrated effort pays dividends by creating comprehensive
opportunities for families to build assets, which on a large scale also
help to revitalize distressed communities.
Neighborhood Housing Services of America
Neighborhood Housing Services of America (NHSA) works in
partnership with Neighborhood Reinvestment Corporation to meet the
special secondary market needs of NeighborWorks organizations and their
clients. NHSA is governed by an independent board of directors,
composed of representatives from these private sector investors,
NeighborWorks organizations, and local civil servants. The primary
mission of NHSA is to operate a specialized secondary market created to
replenish the revolving loan funds and capital pools of local
NeighborWorks organizations.
With administrative and capital support provided by Neighborhood
Reinvestment, NHSA purchases loans from NeighborWorks organizations,
thereby allowing organizations to originate loans with flexible rates
and terms based on the borrowers' needs. NHSA's loan purchases provide
an ongoing stream of capital into NeighborWorks organizations'
revolving loan funds, allowing them to meet additional needs within
their communities.
NHSA leverages Neighborhood Reinvestment's financial support by
securing private-sector capital from a pool of socially-responsible
national institutional investors, including insurance companies,
financial institutions, foundations and pension funds. Proceeds from
these investments are used to purchase NeighborWorks loans.
SELECTED OUTCOMES FOR FISCAL YEAR 2003
Thanks to your continued support, Neighborhood Reinvestment's 25th
anniversary year produced new levels of achievement. Congress provided
Neighborhood Reinvestment Corporation with an appropriation of $104.3
million. The NeighborWorks network leveraged these resources to:
--Generate nearly $2 billion of direct investment in targeted
communities;
--Leverage $18 in direct investments in communities for each dollar
Congress appropriated to Neighborhood Reinvestment;
--Provided affordable housing opportunities to more than 83,000
families; and
--Provided pre- and post-purchase homebuyer education and counseling
services to over 75,000 families.
PROJECTED OUTCOMES FOR FISCAL YEAR 2005
For fiscal year 2005, the Corporation requests an appropriation of
$115 million. At this funding level, Neighborhood Reinvestment will be
able to maintain its current level of services to the NeighborWorks
network, including continued support of increasing homeownership, with
a particular focus on increased and improved housing counseling
efforts.
A $115 million appropriation will allow the NeighborWorks system
to:
--Leverage nearly $2.3 billion in direct total investment in
distressed rural, suburban and urban communities;
--Use each dollar Congress appropriates to leverage nearly $20 from
other sources;
--Assist more than 83,000 families obtain and maintain safe and
affordable rental and homeownership housing;
--Provide pre- and post-purchase homeownership counseling and
financial literacy training to nearly 86,000 families; and
--Own and/or manage 41,000 units of affordable rental housing.
To support these accomplishments, the Neighborhood Reinvestment
Corporation and NHSA will:
--Conduct 240 organizational assessments of member organizations;
--Provided almost 11,000 individuals with training, amounting to more
than 210,000 contact hours;
--Disburse 71 percent of Neighborhood Reinvestment's congressional
funding in the form of grants; and
--Purchase $66 million in loans from NeighborWorks organizations.
PRIORITIES FOR FISCAL YEAR 2005
In developing the Corporation's fiscal year 2005 budget,
Neighborhood Reinvestment sought to continue its work from prior years,
while defining more aggressive expectations for the NeighborWorks
system. Neighborhood Reinvestment has always worked to be good stewards
of the funds that Congress has entrusted to us, and the Corporation
continues to diligently work to maximize our efficiency and
effectiveness. In order to meet these expectations, Neighborhood
Reinvestment and the NeighborWorks system will continue to:
--Build and sustain a network of excellence;
--Foster innovation;
--Build skills and performance in the housing and community
development field; and
--Leverage strategic partners and resources.
Build and Sustain a Network of Excellence
Although the larger environment in which the NeighborWorks system
operates has changed dramatically over the years, the Corporation's
role as a bridge between mainstream financial institutions and lower-
income communities and families remains relevant and critical.
Neighborhood Reinvestment and the NeighborWorks network continue to
operate in underserved communities that are home to a variety of
citizens who lack access to decent, affordable housing, financial
products, services, and the kind of investments that sustain
communities.
NeighborWorks organizations function as partnerships of local
residents, lenders and other business leaders, and local government
representatives. They produce creative strategies, share innovative
best practices, and develop flexible financing mechanisms. When these
organizations are supported and work together, they create a nimble
network of high performing nonprofits, where the whole is greater than
the sum of its parts. In order to facilitate, encourage and promote
this network of excellence, the Neighborhood Reinvestment Corporation
provides guidance, assistance and oversight of the NeighborWorks
network in the following ways.
Financial Support
Equity capital grants are a critically important financing vehicle
that Neighborhood Reinvestment provides on a competitive basis to
NeighborWorks organizations for capital and revolving loan funds that
support real estate development and lending. NeighborWorks
organizations use these grants to provide the equity and gap financing
necessary to originate loans for home purchases, property
rehabilitation and small businesses, and provide equity and financing
for real estate development. Eligible activities also include capital
costs associated with the acquisition and development of residential
and commercial real estate for long-term ownership by a NeighborWorks
organization.
Neighborhood Reinvestment also provides expendable grants to
NeighborWorks organizations to strengthen and increase their ability to
develop and administer responsive products and services. These
competitive grants are awarded for activities that address the full
range of organizational, administrative and financial management and
development issues faced by nonprofit housing and community development
organizations. Particular emphasis is placed on activities crucial to
increasing production and efficiency, thereby generating sustained
community impact and ensuring the long-term success of the organization
and its initiatives.
Technical Assistance
In tandem with financial assistance, Neighborhood Reinvestment
provides a wide range of technical assistance. NeighborWorks
organizations request practical, systems-based assistance in
programmatic, organizational, administrative, financial or management
areas of strategic importance to their organization. Neighborhood
Reinvestment responds with a team of professionals familiar with each
organization's local market, environmental challenges, structure and
mission. These professionals provide technical assistance in six key
programmatic areas: organizational development; resource development
and marketing; community revitalization, economic development and
business planning; technology and financial management systems; single-
family housing and lending; and real estate development and management.
The guiding principles observed by Neighborhood Reinvestment include a
mandate to design and deliver our services in a manner that
consistently builds the capability of network organizations to fulfill
their vitally important missions and increases their capacity to
sustain their efforts over time. Our goal is to increase self-reliance
and programmatic expansion among network members.
Organizational Assessment
As part of our responsibility to act as a good steward of Federal
funding, and to protect the investment of other partners as well as the
high standards and the reputation of the NeighborWorks network as a
whole, Neighborhood Reinvestment Corporation is committed to promoting
and maintaining a network of high-performing, well-managed, nonprofit
housing and community development corporations that deliver high
quality services responsive to local needs and have a measurable impact
on their communities. One of the tools employed in doing this is a
uniform program review and assessment system.
Organizational assessment enhances the performance and productivity
of NeighborWorks organizations, while assisting in building the
capacity of our affiliates to function in a highly effective manner.
Assessments also offer the opportunity to evaluate the use of
Congressionally appropriated funds from Neighborhood Reinvestment, and
evaluate the capacity of affiliate organizations to meet NeighborWorks
network membership standards and performance objectives.
Through a system of continuous monitoring, each NeighborWorks
organization is subject to an annual organizational assessment through
either off-site or on-site program reviews. Off-site reviews involve
the collection and analysis of data about the organization. These data
are analyzed in eight risk areas on a quarterly basis. If a risk alert
is identified, the degree to which the organization has the capacity to
manage the risk is determined, and appropriate action is taken.
Expansions, Organizational Mergers and New Affiliates
In today's community development industry, employing an effective
and efficient growth strategy does not necessarily mean creating or
adding new organizations. In many underserved areas, the most sensible
and cost-effective approach is to expand the reach or programmatic
services of an existing network member, or to facilitate a merger of
two organizations to create a more powerful organization with greater
impact and efficiency. Neither of these approaches results in the
addition of new organizations, yet both can result in productive
outcomes, more efficient use of resources, responsive service delivery,
and expanded coverage. Mergers of local housing and community
development organizations are becoming an increasingly common practice.
The combined efforts resulting from mergers can result in achieving
greater impact at equal or less cost.
Neighborhood Reinvestment receives a far greater number of requests
for new affiliations than it can hope to satisfy responsibly. To
prioritize requests from new applicants, the Corporation seeks those
environments where its resources and assistance are likely to add the
greatest value to local efforts and produce the most pronounced impact.
Through a careful affiliation process, Neighborhood Reinvestment works
with interested existing community-based organizations to ensure that
before any organization is chartered as a NeighborWorks entity, it is:
sound and productive; led by a responsible board of directors
reflective of the community it serves; and, committed to a mission with
goals, values, programs and accomplishments compatible with the focus
and priorities of the NeighborWorks network. In a given year,
Neighborhood Reinvestment extends an invitation to join the
NeighborWorks network to up to 10 organizations.
Through the affiliation process, Neighborhood Reinvestment enables
an organization to increase its productivity and realize a greater
return on the investment of time and money. Chartering a new
NeighborWorks organization requires extensive educational and
partnership-building efforts, usually over a period of about 12 to 18
months.
Foster Innovation
Providing Affordable Rental Opportunities
Understanding the importance of multifamily rental housing in a
comprehensive neighborhood revitalization strategy, a group of
NeighborWorks organizations formed the NeighborWorks Multifamily
Initiative in 1999. Together, these organizations own and/or manage
more than 44,000 units of affordable and well-maintained rental
housing. The members of the NeighborWorks Multifamily Initiative make
it their mission to provide sustainable multifamily homes, which are
characterized over the long-term by:
--Affordability, as defined by local market conditions;
--Ongoing economic viability;
--High quality maintenance and management; and
--Access to on-site learning centers designed to advance the personal
assets of residents--academic success of youth, employability
of adults, financial savings, and homeownership.
With $5 million appropriated by Congress in fiscal year 2002, the
Corporation embarked on an ambitious effort to create mixed-income
multifamily properties serving families and individuals below 30
percent of area median income. With that funding, Neighborhood
Reinvestment provided 14 grants, which funded the development of 121
units affordable to families with extremely low-incomes. In fiscal
years 2003 and 2004, Congress appropriated an additional $10 million
set-aside for multi-family housing. These investments will enable
NeighborWorks organizations to expand these precious affordable rental
opportunities to new communities, thus enhancing the impact of
federally-appropriated funds. The rental housing has been, and will
continue to be, developed in diverse settings--urban, suburban, rural,
large and small developments as well as scattered site. Most
importantly, many of these units will be affordable to extremely low-
income families without need for a Section 8 voucher or certificate or
other form of on-going subsidy.
Championing Homeownership for Lower-Income Americans
For years, the NeighborWorks system has led the nonprofit
homeownership industry, bringing homeownership opportunities to all
Americans. Research confirms what common sense suggests: responsible
homeownership is good for families, neighborhoods, the economy and the
Nation. Homeownership is the largest source of wealth for the majority
of American families, and therefore, their key toward improving their
lives and the opportunities for their children. Lack of access to
homeownership adversely affects minority citizens, female-headed
households and immigrant families.
From its inception in 1993, the NeighborWorks Campaign for Home
Ownership has brought lower-income families into the economic
mainstream by helping them achieve one of their primary life goals:
owning a home. Neighborhood Reinvestment achieved this by partnering
with lenders, insurance companies, secondary markets, government, and
the real estate community.
Over the last 10 years, the NeighborWorks Campaign for Home
Ownership has created more than 71,000 new homeowners and provided
counseling to over 413,000 individuals. As a result, $6.6 billion is
invested in America's communities, serving to help families build
wealth and to revitalize neighborhoods.
The Campaign for Home Ownership has established high standards for
service delivery, training, and technical assistance, and encouraged
local NeighborWorks leaders to engage in peer-mentoring. Key to the
Campaign's success, NeighborWorks organizations establish clear,
aggressive goals, while maintaining high quality standards. Innovative
tools, such as Full Cycle LendingSM, NeighborWorks
HomeOwnership CentersSM, Financial Fitness, and Housing
Choice Voucher-Section 8 homeownership, have also been developed.
In June 2002, President Bush announced a national goal of
increasing the number of minority homeowners by at least 5.5 million by
the end of this decade. The NeighborWorks system has been an active
partner in the development of the White House's initiative on
increasing minority homeownership. The Corporation has held a national
symposium, conducted targeted case studies with leading housing
researchers, and set national goals for serving minority first-time
homebuyers. Since the President announced the goal, the NeighborWorks
network has helped 10,000 minority families achieve the American dream
of home ownership.
Building on a strong record of success, the Campaign for Home
Ownership has set the following goals from 2003-2007:
--Create 50,000 new homeowners, including 30,000 minority homebuyers.
--Assist 50,000 families to preserve homeownership and improve their
homes through home maintenance and repairs, delinquency
counseling and foreclosure prevention, and mortgage
refinancing.
--Establish a coordinated outreach, public information and counseling
effort to reach 500,000 families through educational programs,
such as Financial Fitness classes, anti-predatory lending
efforts, and homeowner counseling.
Financial Fitness
More recently, Neighborhood Reinvestment and members of the
NeighborWorks network have developed a new financial education program
called Financial FitnessSM. Neighborhood Reinvestment has
developed a partnership with the Federal Deposit Insurance Corporation
for use of the FDIC's ``Money Smart'' financial literacy program to
teach money management skills. The Corporation has developed standards,
training materials, and developed 420 trainers through the
NeighborWorks Training Institute. Since 2001, more than 8,100 consumers
have graduated from the program, 58 percent of whom are minorities and
67 percent are women. This program intends to give participants an
increased understanding of basic finances and healthy financial
relationships that benefit both the individual and the community.
While 91 percent of participants are current renters hoping to
bolster their credit and savings in preparation to purchase a home in
the future, Financial Fitness has also proven a successful strategy to
preserve homeownership for existing owners facing income instability or
high debt. Since 2002, the Campaign for Home Ownership has enhanced its
emphasis on not just promoting, but also sustaining homeownership. In
addition to Financial Fitness, the NeighborWorks Campaign for
HomeOwnership is working with the Fannie Mae Foundation to develop new
post-purchase standards and best practices. This effort will help
NeighborWorks organizations better provide home maintenance services,
delinquency and foreclosure prevention counseling, and mortgage
refinance loans. This expanded effort serves the interests of not only
the homeowner, but also the community as a whole.
Housing Choice Voucher Homeownership
The NeighborWorks system is dedicated to expanding homeownership
opportunities across the country, particularly for families and
individuals with low and moderate incomes. One of the most innovative
programs used towards this effort is the Section 8 homeownership
option. Strong technical and financial support from the Neighborhood
Reinvestment Corporation has enabled NeighborWorks organizations to
serve a critical role as a bridge between private lenders and public
housing authorities to make homeownership a reality for qualified
Section 8 voucher holders. Congress has propelled the NeighborWorks
network's efforts by providing funding specifically targeted to
NeighborWorks organizations who partner with Public Housing Authorities
(PHAs).
In recognition of the early success of this effort, the
Corporation's fiscal years 2001, 2002 and 2003 appropriation included a
total of $20 million set-aside to develop capacity and effective
partnerships in support of the U.S. Department of Housing and Urban
Development's Section 8 homeownership option. Most of the set-aside
funds were used to capitalize NeighborWorks organizations' revolving
loan funds serving as a source for second mortgages, with a smaller
portion of the set-asides being used for capacity-building grants.
These grants helped some NeighborWorks organizations tailor their pre-
and post-purchase services to the specific needs of their Section 8
population, develop unique systems to work with a Section 8 voucher and
the PHA, or defray a portion of the costs associated with hiring
additional staff to implement the program. The appropriated set-asides
also supported a performance-monitoring component with assistance from
a third-party consulting and research firm. Additionally, Neighborhood
Reinvestment's local, regional and national training efforts on the
Housing Choice Voucher Homeownership Program have served an important
role in influencing the Public Housing Authorities across America to
develop and implement homeownership programs.
As of September 2003, the set-asides helped fund more than 60
NeighborWorks organizations develop partnerships with 73 PHAs, which
provided 2,204 families with pre-purchase homebuyer education, and
resulted in over 378 new homeowners. The income of these families was
between 60 and 80 percent of their area's median income. These
entrepreneurial partnerships are built upon the NeighborWorks network's
solid homeownership experience in pre- and post-purchase counseling,
innovative mortgage financing and in leveraging public resources and
private investment. The results of this program offer evidence of that
this powerful local public-private partnership can assist those
Americans who are often locked out of homeownership.
Supporting Rural Development
In 1990, three NeighborWorks affiliates identified their primary
service areas as rural communities. By the end of fiscal year 2003,
that number had grown to 73 organizations, which is approximately one-
third of the NeighborWorks network and comprises the fastest growing
segment of the network. Moreover, as our existing NeighborWorks
organizations expand their target areas, they begin to capture rural
areas with their services.
In fiscal year 2003, NeighborWorks organizations serving rural
areas assisted more than 5,000 families in buying or rehabilitating
their homes, and leveraged more than $500 million in direct investment.
The network has also enhanced its ability to address the unique needs
in rural communities by creating a capital fund for rural development.
With seed funding from Neighborhood Reinvestment and the Northwest Area
Foundation, rural NeighborWorks organizations have grown a shared
revolving loan fund that provides bridge financing for local housing or
economic development projects at below-market rates. With current loan
assets of $2.5 million, 45 loans have been closed since 1994, totaling
more than $4.4 million. These loans have supported the production of
432 units of affordable housing and 22 units of commercial space and
community facilities, and leveraged more than $35.8 million in total
project financing.
Build Skills and Performance in the Housing and Community Development
Field
A comprehensive, systematic program of training and informing
powerfully augments on-site technical assistance. The Neighborhood
Reinvestment Corporation is nationally recognized as the premier
provider of training in the housing and community development field,
having founded its Training Institute 15 years ago. Today, the
NeighborWorks Training Institute offers more than 150 courses and
reaches more than 5,000 people a year from more than 4,000 communities
across America. Participants at the Training Institutes come from all
50 States, Puerto Rico and the District of Columbia.
The NeighborWorks Training Institutes are typically scheduled four
to five times each year at various locations around the country.
Courses are offered in eight tracks: homeownership and community
lending, affordable housing, community building, community economic
development, construction and production management, management and
leadership, and neighborhood revitalization and rural development. The
Institutes also host symposia on cutting-edge topics involving
nationally recognized experts, special-issue workshops, and peer-to-
peer networking opportunities. Approximately half of the attendees of
the Institutes come from organizations external to the NeighborWorks
network. This is one of the many ways that the support Congress
provides Neighborhood Reinvestment Corporation reaches not only the
2,500 NeighborWorks-assisted communities, but also the broader
community development field.
Neighborhood Reinvestment has recognized that experienced housing
and community development practitioners have few options for continuing
education and skill development. Neighborhood Reinvestment's own
Training Institutes, like others in the field, focus primarily on
meeting the critical needs of less seasoned professionals.
Beginning in 2002, Neighborhood Reinvestment introduced a unique
program for Executive Directors of community development organizations
practitioners, in partnership with Harvard University. The Advanced
Practitioner Program requires participants to shape and focus their
efforts on challenges that can make a tangible difference for their
organizations, and for the housing and community development field.
Participants establish ambitious goals and hold themselves and each
other accountable for achieving them. This self-motivated and
disciplined approach is fully focused on ensuring the success of
participants as they advance their own work in building strong
community-based organizations.
Leverage Strategic Partners and Resources
Partnerships
Neighborhood Reinvestment Corporation embodies the principle of
cross-sector partnership in all major projects and programs.
Nationally, the Corporation is engaged in partnership with many major
financial institutions such as Bank of America and Citibank, both
government-sponsored enterprises, and large retailers such as Sears.
The benefits of these partnerships accrue to local NeighborWorks
organizations, receiving financial assistance, in-kind support, and
business opportunities.
Financial Resource Leverage
In fiscal year 2005, the NeighborWorks System will use the $115
million appropriation to leverage more than $2.3 billion in other
sources. The Federal appropriation provides unique flexibility to be
the ``first in'' on large-scale development projects, which then
stimulates private sector interest to support the majority of
development costs. The strong partnership base of the NeighborWorks
system has built a solid national reputation for quality and stability.
In 2005, Neighborhood Reinvestment will nurture and grow these
partnerships locally and nationally, in order to meet the aggressive
goal of leveraging almost $20 for each $1 of Federal appropriation.
Revolving Loan Funds
Because of their flexibility and local control, revolving loan
funds are central to the impact of the NeighborWorks system. These
loans are local pools of money administered by NeighborWorks
organizations to meet the lending needs of borrowers who do not qualify
under conventional loan underwriting criteria--and to serve as equity
capital in support of major capital projects. Money for the revolving
loan funds comes from private- and public-sector investors as well as
from Neighborhood Reinvestment's equity capital grants. Most revolving
loan fund capital comes from local sources--loans and grants made by
banks, insurance companies, foundations, local governments and other
local investors. In fiscal year 2003, more than $113 million from local
NeighborWorks organization's revolving loan funds was invested in
communities.
Loans are made at flexible rates and terms that fit the lower-
income borrower's ability to repay, and are typically secured by a lien
on the property, often a second or third lien to allow for investment
by other public and private sector entities. Sixty-eight percent of
loans made through NeighborWorks revolving loan funds are made to very
low- or low-income households, 51 percent to minority-headed
households, and 46 percent to female-headed households. The liquidity
of many local revolving loan funds is supported by selling loans to
NHSA.
Conclusion
Neighborhood Reinvestment Corporation thanks the committee for the
opportunity to brief you on our work, and the outcomes that were
generated as a result of Neighborhood Reinvestment's congressional
appropriation. The NeighborWorks System and Neighborhood Reinvestment's
congressional appropriation represents a precious asset for 228
community development organizations and more than 2,500 communities
across America. With our leveraging of dollars, NeighborWorks has been
efficient and effective in ensuring the maximum impact of our Federal
appropriation. Congress has allowed Neighborhood Reinvestment to be
flexible and responsive to local needs; as a result, families and
communities are stronger and more self-reliant.
Neighborhood Reinvestment Corporation is committed to continuing to
build healthy, strong and safe communities all across America. Your
continued support is vital to us in accomplishing this goal.
______
U.S. COURT OF APPEALS FOR VETERANS CLAIMS
Prepared Statement of Honorable Kenneth B. Kramer, Chief Judge
Mr. Chairman and distinguished members of the committee, on behalf
of the Court, I appreciate the opportunity to present for your
consideration the fiscal year 2005 budget request of $17,623,000 for
the United States Court of Appeals for Veterans Claims.
The Court's fiscal year 2005 budget request includes $1,100,000
requested by the Veterans Consortium Pro Bono Program (Representation
Program). In accordance with practice since fiscal year 1997, the
Representation Program has provided its own budget request, which the
Court has forwarded (without comment) along with the Court's budget
request.
The fiscal year 2004 appropriation to the Court in Public Law No.
108-199 was $15,938,000, of which $1,175,000 was the amount requested
by the Representation Program. Our fiscal year 2005 budget request
reflects an increase over the budget authority for Court operations for
fiscal year 2004. Three factors account for the increase. The first
reflects a budgeted pay adjustment for all Court personnel consistent
with that generally anticipated for all Washington, DC, area government
employees and also taking into consideration the differential between
the amount budgeted in this category for fiscal year 2004 and the
actual pay adjustment mandated during fiscal year 2004. The second
factor is the statutory authorization for a temporary increase in the
number of judges. The third is a request for funding for feasibility
studies preparatory to the design and construction of a Veterans
Courthouse and Justice Center (Veterans Courthouse). I will discuss
each of these matters further.
The first significant increase in the Court's budget request for
fiscal year 2005 is in personnel compensation and benefits. The
increase in pay and benefits ($590,000 over the Court's fiscal year
2004 appropriation) is caused by three major factors: (1) The budgeted
pay increase in fiscal year 2004 was 2.2 percent while the actual
increase used as a base is 4.1 percent (pursuant to the Omnibus
Appropriations Act, Public Law No. 108-199), an increase of almost 90
percent--1.9 percentage points--over the fiscal year 2004
appropriation; (2) the budgeted fiscal year 2005 pay adjustment of 1.5
percent for all personnel (based on OMB recommendations); and (3) the
amount, based on valuation by an outside actuary, that must be
contributed to the Court's retirement system (JRS). As in the past, the
budgeted fiscal year 2005 pay-adjustment assumption for all nonjudicial
Court personnel is in conformance with OMB assumptions, with no
differentiation between the Economic Cost Indicator and locality pay,
including necessary funding for benefits. We have used the 1.5-percent
pay adjustment requested in the President's budget. If the Congress
decides, as it did for fiscal year 2004, that the civilian pay
adjustment should be the same as that for the uniformed services, the
additional cost to the Court would be $162,000. The Court's
contribution to the JRS assumes, based on prior practice, that all
judges will participate and that once participation is effectuated it
will include opting into the survivor annuity program. The fund is
invested solely in government securities.
The second important factor is the result of the enactment of
Public Law No. 107-103 (Dec. 27, 2001), calling for the temporary
addition of two judges. Since its inception, the Court has been
composed of seven judges, one of whom serves as chief judge; however,
Public Law No. 107-103, temporarily increased the number of judicial
positions from seven to nine. This law was designed to smooth the
transition period when the then five, now four, remaining original
judges would be eligible to retire in a very short span of time; at the
end of that period, in August 2005, the size of the Court will return
to seven judges (because one or both of the last two of the original
judges to retire will not be replaced). We have attempted to budget as
prudently as possible for this temporary judicial increase. As with our
fiscal year 2004 budget request and appropriation, we have included, as
part of the fiscal year 2005 budget request, funding for two additional
chambers for use during fiscal year 2005 (personnel and benefits,
office buildout, furnishings, equipment, and supplies).
The Court requests funding for 98 full-time equivalent (FTE)
positions. As with our fiscal year 2004 budget request and
appropriation, the increase in staffing over the fiscal year 2003 level
results solely from the new judgeships. The Court, as always, will
monitor staffing to ensure that it is kept at the minimum level
necessary to review in a timely fashion the cases brought before the
Court. To provide further background on the workload before the Court,
the Court's caseload history (of appeals and petitions) over the past
12 years is summarized in the following table, which also appears on
page 4 of the Court's fiscal year 2005 Budget Request:
----------------------------------------------------------------------------------------------------------------
New Cases as
BVA Total New Cases to Percent of BVA
Denials USCAVC Denials
----------------------------------------------------------------------------------------------------------------
Fiscal year 1992................................................ 10,946 1,742 15.9
Fiscal year 1993................................................ 9,734 1,265 13.0
Fiscal year 1994................................................ 6,194 1,142 18.4
Fiscal year 1995................................................ 6,407 1,279 20.0
Fiscal year 1996................................................ 10,444 1,620 15.0
Fiscal year 1997................................................ 15,865 2,229 14.0
Fiscal year 1998................................................ 15,360 2,371 15.4
Fiscal year 1999................................................ 14,881 2,397 16.1
Fiscal year 2000................................................ 14,080 2,442 17.3
Fiscal year 2001................................................ 8,514 2,296 27.0
Fiscal year 2002................................................ 8,606 2,150 25.0
Fiscal year 2003................................................ 10,228 2,532 24.7
----------------------------------------------------------------------------------------------------------------
Appeals to the Court come from the pool of cases in which the Board
of Veterans' Appeals (BVA or Board) has denied some or all benefits
sought by claimants. The Court is also empowered to entertain petitions
for extraordinary relief where the Court action sought would be in aid
of its jurisdiction. Over the last 3 fiscal years, the number of new
cases as a percentage of BVA denials has risen substantially over the
level in fiscal year 2000 and earlier years.
Furthermore, since Congress extended the Equal Access to Justice
Act (EAJA) to the Court in 1992, there has been a substantial number of
EAJA applications. The case-filing figures provided in the table,
above, however, do not reflect the number of EAJA applications filed
and EAJA cases pending, even though these applications initiate a
separate proceeding requiring Court action. In fiscal year 2003, the
Court acted on 1,559 applications, up from 1,104 applications in fiscal
year 2002 (a 41 percent increase), more than double the 776
applications in fiscal year 2000 (the first year for which EAJA-
application figures are available). The potential availability of EAJA
fees has encouraged a greater number of attorneys to develop expertise
in veterans benefits law, and the professional assistance of the
growing appellants' (benefits claimants) bar has proven very valuable
in litigation before the Court. However, there is a tradeoff: Some EAJA
applications can demand considerable time because they present very
complex issues, and resolving these issues continues to require
substantial judicial and staff resources. Consequently, processing and
disposing of EAJA applications has become an important workload factor.
In addition to the factors addressed above, a third matter has
contributed to the amount of the Court's fiscal year 2005 budget
request. The budget for all other objects reflects a net increase of
$1,170,000. Of this increase, $915,000 would be used for feasibility
studies preparatory to design and construction of a Veterans
Courthouse. The Court has requested the Department of Defense (DOD) to
consider using for this purpose a site on presently available Pentagon
Reservation land (either the Hayes, Eads, or Fern Street parking lot,
located south of Interstate 395, just north of Army Navy Drive). It is
my understanding that the DOD has initiated a feasibility study to
determine the ``highest and best possible use'' of these three sites in
Arlington, Virginia. On March 11, 2004, the Chairman and ranking
minority member of the House Committee on Veterans' Affairs introduced
a bill (H.R. 3936) to require DOD to report on the feasibility of
locating a new courthouse for the Court on or proximate to the Pentagon
reservation; this would include, of course, the feasibility of the
Court's participation in any DOD development project involving these
parking-lot sites. That committee held a hearing on this bill on April
29, 2004, at which I presented testimony in support of this bill.
In addition to the Court, occupants of the Courthouse would be
members of those constituencies that regularly practice before the
Court--VA General Counsel Group VII, the Representation Program, and
the appellate litigation staff of the Disabled American Veterans (DAV),
the Paralyzed Veterans of America (PVA), and the National Veterans
Legal Services Program (NVLSP). The Court has been working with the
General Services Administration (GSA) and exploring various courthouse
alternatives; the GSA has preliminarily estimated that the Veterans
Courthouse would require 121,000 gross square feet or 112,000 rentable
square feet of interior space. (It is not anticipated that, if
additional veterans organizations were to occupy space, there would be
any significant impact on square-footage requirements.) The GSA could
work with the DOD to coordinate predesign and preconstruction studies
to determine the feasibility of use of one of the sites for the
Veterans Courthouse and would provide input during design and
construction based on guidelines for Federal courthouses and act as the
Federal leasing agent once construction was completed. The Court and
its constituencies that have expressed an intent to relocate to the
Veterans Courthouse pay (or expressed a willingness to pay, based upon
present rental costs) over $3.7 million per year for rent. The GSA
anticipates that, at least for the Court and VA, rental costs at our
present location will increase substantially in the not-too-distant
future. Arlington County government officials have indicated that they
support the location of the Veterans Courthouse on one of these sites
and have offered to assist in this project.
As H.R. 3936 recites, the Courthouse ``would express the gratitude
and respect of the Nation for the sacrifices of those serving and those
who have served in the Armed Forces, and their families.'' Given these
past, present, and future sacrifices, I cannot imagine a higher or
better use for one of these present parking-lot sites than a stand-
alone, dedicated Veterans Courthouse and Justice Center, which would
express our Nation's strong commitment to ensuring justice for every
veteran who--in Abraham Lincoln's words--``shall have borne the battle
and for his widow and his orphan.'' The Pentagon Reservation site would
be the ideal setting, given its proximity to the Pentagon, Arlington
Cemetery, and the soon-to-be-constructed Air Force Memorial and would
be a timely and tangible means of demonstrating to the Nation's
veterans and their families how much their sacrifices are valued.
The request for funding also anticipates essentially uncontrollable
increased costs for rent and for other services. These services include
cross-servicing for payroll and finance and accounting support and for
GSA property and disposal services; also included are increases in the
cost of the contract with the U.S. Marshals Service for court security
officers and in the Court's share of the cost of paying for guards in
the building and garage pursuant to a GSA contract with the Federal
Protective Service. In addition, a $15,000 increase for travel reflects
an increase in the cost of travel, the temporary addition of judges,
plans to conduct oral arguments at law schools and thereby promote
education in veterans' law (as discussed further in the next
paragraph), and training and possible relocation costs associated with
the new judicial appointments. Finally, there is a net decrease of
$10,000 realized in the supplies and materials and equipment
categories.
Last year, in my statement in support of the Court's budget request
for fiscal year 2004, I updated you on two continuing Court
initiatives: To promote study of veterans benefits law in the Nation's
law schools and to support practitioners in their effort to organize a
voluntary bar association. During the past 2 years, the Court held oral
argument at five area law schools (Catholic University, Georgetown
University, the University of Baltimore, American University, and
Howard University), and one of the schools (Catholic University)
offered an evening course in veterans benefits law during the Fall 2002
semester (the course is scheduled to be repeated in Fall 2004). The
voluntary bar association continues to operate successfully, drawing
its dues-paying members (currently over 240) from the appellants' bar,
VA, veterans service organizations, and the Court. As one of its
activities, the bar association has established a law school education
committee, with membership from among the Court's practitioners,
including members outside the Washington, DC, geographic area, to
support the Court's initiative to promote education in veterans
benefits law. These practitioners are working with law professors and
law schools throughout the country in exploring various means to expose
future attorneys to this practice area.
In conclusion, I appreciate this opportunity to submit this
testimony on the Court's budget request for fiscal year 2005. On behalf
of the judges and staff, I thank you for your past support and
continued assistance. I will be happy to answer any questions that you
might have.
______
CONSUMER PRODUCT SAFETY COMMISSION
Prepared Statement of Hal Stratton, Chairman
Thank you for this opportunity to present to the subcommittee the
appropriation request for the Consumer Product Safety Commission (CPSC)
for fiscal year 2005. The Consumer Product Safety Commission is an
independent agency charged with protecting the public from unreasonable
risks of serious injury or death from more than 15,000 types of
consumer products under the agency's jurisdiction. Deaths, injuries and
property damage from consumer product incidents cost the Nation more
than $700 billion annually.
Since its inception, the Consumer Product Safety Commission has
delivered critical safety benefits to America's families and has made a
significant contribution to the 30 percent decline in the rate of
deaths and injuries related to hazardous consumer products. We are
proud of our mission, and we appreciate the subcommittee's strong
support of the Commission and its goals over the years.
The CPSC budget request for fiscal year 2005 is $62,650,000. This
year's requested level of funding is an increase of $3 million over our
fiscal year 2004 budget and is almost exclusively to be used for
mandated staff salary and benefit increases and General Services
Administration office space rent increases.
Mandated Federal pay increases are the largest part of this request
at $1.8 million. This figure is based on the estimated 1.5 percent
increase proposed by the President for 2005. Additional mandated salary
costs also include staff within-grade increases, staff retirement
benefit increases, and staff health insurance benefits increases. Taken
together, these increases total over $2.3 million.
Additionally, the General Services Administration's proposed annual
increase for space occupied by CPSC in our headquarters, laboratory and
field locations is $339,000. We are not increasing our space; in fact,
in the past 5 years, CPSC avoided space rent increases of over $1
million annually because our field telecommuting initiative allowed us
to reduce space requirements.
Finally, we are requesting $80,000 for operation of a new fire data
system. Reduction of fire deaths and injuries is a major effort by the
agency and accurate data on consumer product involvement is critical.
This initiative builds on a successful pilot conducted in 2002 designed
in response to a General Accounting Office criticism of the statistical
deficiencies of the National Fire Incident Reporting System (NFIRS)
operated by the U.S. Fire Administration and used by CPSC for our fire
death and injury estimates.
I would also like to call to your attention the planned
modernization of CPSC's aging laboratory facility. While we are not
seeking funding in our current budget request for this project, I want
to take this opportunity to update the subcommittee on our progress.
GSA studies have shown that simply maintaining the existing structures
is not cost effective. We have been working with GSA since 1999 to
develop a modernization plan for the former military installation built
in the 1950's that serves as our laboratory facility. An architectural
firm under contract to GSA is now developing the full costs for
implementing the master plan approved last year by the local planning
commission. As these cost estimates become available, we will keep you
further advised.
A number of Senators have expressed interest in our largest hazard
reduction activity, and that is reducing fire injuries and deaths.
Under our previous Strategic Plans, we had a target to reduce the rate
of fire deaths by 10 percent from 1995 to 2005. I am pleased to report
that from 1995 to 1998, the fire death rate was reduced by nearly 15
percent. Because of this success, we decided to retain this as a
strategic goal with a new target of an additional 20 percent reduction
from 1998 to 2013. Past standard-setting and compliance activities have
contributed to the general decline in fires and fire deaths and show
that the agency is effective in reducing fire hazards. For this reason,
we are accelerating our efforts.
I would also like to update the subcommittee on our efforts with
regard to enhancing our ability to measure the number of clothing-
related burn injuries, including sleepwear related injuries, to
children. In July of last year, CPSC launched the Burn Center Reporting
System. This system is capturing information on clothing-related burn
injuries to children directly from burn centers throughout the country.
All burn centers that treat children have been asked to report to CPSC.
The system went into operation on July 1, 2003. As of this date,
participating centers have reported over 100 cases. CPSC staff are
investigating every one of these cases to determine the hazard
mechanisms and the role of the clothing in the incident. This
additional reporting tool supplements data collected by CPSC's other
systems and enhances our ability to measure the number of clothing
related burn injuries to children. For the record, I would like to
thank publicly the American Burn Association and the Shriners Hospitals
for Children for their substantial support in making this effort a
success. We will be submitting a full written report to the
subcommittee later this year.
CPSC has added a new strategic safety goal this year, and that is
to reduce the rate of pool and in-home drowning of children under 5
years of age. Annually, an average of 248 children younger than 5
drowned in swimming pools. In addition, an average of 167 children of
that age group drown each year from other hazards in and around the
house including such common household products as large buckets. It is
the second leading cause of death in the home for children under the
age of 5.
CPSC is currently developing an action plan to foster greater
consumer awareness and learn more about the circumstances and trends
relating to childhood drownings. In addition, the staff is developing
new guidelines that will be helpful to communities, code developers,
and industry in further addressing this drowning hazard in pools and
spas. We will be launching a safety campaign and public education
initiative this summer, as well as looking at potential new standards
and engaging in rigorous compliance enforcement to reduce the number of
childhood drownings.
Our proposed budget seeks to build on recent accomplishments and
allow the flexibility to initiate new efforts when hazards emerge. Last
year, CPSC completed 280 cooperative recalls involving about 40 million
product units. In 2003 we completed four civil penalty cases that
resulted in almost $2 million in fines. In addition, we secured five
criminal convictions for violations of the Federal Hazardous Substances
Act.
CPSC sampled and tested shipments containing over 32 million
fireworks in 2003. We prevented over 1 million illegal firework devices
from entering the United States in 2003. In addition, CPSC in
conjunction with the Department of Justice and the Bureau of Alcohol,
Tobacco and Firearms and Explosives seized tens of thousands of illegal
devices. In addition, other port surveillance activities prevented
nearly 400,000 lighters that failed to have child-resistance safety
devices from entry.
In 2003 our public information initiatives were supported by 232
press releases, our consumer hotline, radio and TV interviews, almost 2
million distributed publications, e-mail alerts and our National Injury
Information Clearinghouse. In just the first 4 months of 2004, our
award winning website, www.cpsc.gov has seen more than 12.6 million
hits. Each of these visits to our website has the potential to save a
life.
Also in 2003 CPSC was pleased to join forces with Amazon.com and
eBay to call their customers attention to products offered for sale on
their auction sites that might have been recalled and to direct them to
CPSC's web site for recall information. Another innovative outreach
program is our national campaign, in partnership with the National
Association of Resale and Thrift Shops, Goodwill Industries
International and the National Safekids organization, to alert the
public to the sale by thrift stores and other resale stores of
hazardous products that have been recalled or banned or do not meet
current safety standards. Our goal is to eliminate thousands of
hazardous and recalled products from the secondary market. Our video
news release for this new initiative on thrift and retail stores
reached over 24 million viewers.
The creation of Recalls.gov is another significant CPSC safety
effort. This is a partnership that CPSC initiated with six other
Federal agencies to develop a one-stop-shop for all Federal product
recalls. This new website is an easy to use portal for your
constituents to access and find out all recall actions on one single
website.
We will continue to work hard at the Consumer Product Safety
Commission to reduce the deaths, injuries and property loss associated
with hazardous products. They cost the Nation hundreds of billions of
dollars every year. Our budget request will help us to reduce these
costs and the tragic injuries and loss of life they represent. Thank
you.
______
GENERAL SERVICES ADMINISTRATION
Federal Citizen Information Center
Prepared Statement of Teresa Nasif, Director
Mr. Chairman and members of the subcommittee, thank you for the
opportunity to present the fiscal year 2005 budget request for the
Federal Citizen Information Center (FCIC).
For millions of people, FCIC embodies the best of government--
practical, down-to-earth, and dedicated to meeting their needs. In
dramatically increasing numbers, citizens are visiting FirstGov.gov,
the official portal of the U.S. government, for instant, free access to
a great variety of government information and services--from Federal,
State, and local agencies. They are also e-mailing or calling FCIC's
toll-free National Contact Center with questions about how to check
social security benefits, find specialized tax forms, learn about the
latest product recalls, or apply for a student loan. And, as they have
for more than 30 years, they continue to send for publications from the
distribution center in Pueblo, Colorado. As technology provides new
ways for citizens to access information and interact with their
government, FCIC has responded by developing simple, user-friendly
services that millions of citizens rely on each year.
In fiscal year 2003, citizens placed 1.76 million calls, requested
5.92 million print publications, received 990,000 e-letter subscription
mailings, made 60,000 e-mail inquiries, and completed 202 million web
page views, for a program total of 210.73 million contacts, as compared
to a fiscal year 2002 total of 123.57 million contacts. A significant
reason for the large increase from fiscal year 2002 to fiscal year 2003
is that FirstGov.gov, the official portal to the U.S. Government,
became part of FCIC on June 30, 2002, and fiscal year 2003 shows the
first full year impact of having FirstGov.gov page views included in
FCIC public contacts.
The Federal Citizen Information Center program mission and goals
are also interwoven with the administration's E-Gov initiative, USA
Services. The aims of USA Services are to present a single government
face to citizens who need timely and consistent responses about
government programs, and in so doing, enable the Federal Government to
become more citizen-centric. An important component of USA Services is
its ``front door,'' a well publicized, easy-to-access point of contact
for all citizens.
In fiscal year 2004, FCIC entered its first full year of operations
as the infrastructure provider for USA Services, the ``front-door'' to
the government. As such, FCIC operates the service delivery channels by
which citizen questions are answered via the web, phone, e-mail, or
print publications.
In a move that will save Federal dollars as well as streamline
citizen access to government services, FCIC will also receive and
respond to telephone calls, and e-mails that are misdirected within the
Federal Government. As of March 2004, USA Services has 20 Federal
partners who have formally agreed to forward misdirected citizen
inquiries to the National Contact Center (NCC), and who are working
with USA Services to streamline citizen access to Federal information.
FCIC uses its well-established agency liaison program to offer these
services to Federal agencies, as well as to offer to set up a system
for handling basic, frequently asked questions that can be answered
directly by FCIC without a referral to another agency. Just as agencies
save money and time by participating in FCIC's publication distribution
program, they can also benefit by taking advantage of FCIC's telephone
and e-mail answering services.
FCIC uses a variety of methods to measure the quality of its
service to citizens. Among these are the volume of contacts; the
results of the American Customer Satisfaction Index (ACSI) survey;
direct feedback from users via e-mail, telephone, and usability
testing; the amount and nature of press coverage and awards received.
In fiscal year 2003, FirstGov.gov received the coveted Innovations in
American Government Award from Harvard University and the Ford
Foundation. FirstGov.gov's January 2004 ACSI scores averaged 74.5. This
puts it within reach of top-ranked Google at an ACSI average of 80. It
far exceeds the current average for all of the government websites
using the ACSI, which is 69.
The pueblo.gsa.gov website, the Pueblo, Colorado publications
center, and the National Contact Center also continue to receive highly
favorable recognition and press coverage throughout the United States.
Citizens have given FCIC high marks on the accessibility and usefulness
of information, as FCIC scored a 79 on the 2003 American Customer
Satisfaction Index for citizens who ordered print publications. The
toll-free National Contact Center received the 2003 Government Customer
Support Excellence Award for Overall Customer Support Excellence. Also,
FCIC received free advertising space and airtime worth $9.6 million
during fiscal year 2003.
Taken all together, these performance measures provide a clear
picture of how FCIC is using new technology and innovation, combined
with proven practical programs, to provide the highest quality service
and the best value to increasing numbers of American citizens.
In fiscal year 2004, FCIC will award a new contact center contract
to provide an expanded range of services in support of its ongoing
mission, the mission of USA Services, and the missions of other Federal
agencies. During fiscal year 2005, FCIC will conduct pilot studies of
web chat and co-browsing to assess the public's demand for these
services and determine the best ways of offering them in the future. As
NCC capabilities expand, the amount of information it provides to the
public will grow, both through normal day-to-day operations and through
services provided to a variety of customer agencies and E-Government
initiatives.
The requested appropriation for fiscal year 2005 totals $14.907
million, an increase of $990,000 from fiscal year 2004. This amount
covers 6 additional FTE that will enable FCIC to enhance web content
and security and to provide account services to customer agencies.
In fiscal year 2005, FCIC will be responding not only to the ever-
changing needs of citizens, but will also be assisting other government
agencies in meeting those needs. In keeping with the goals of the E-Gov
initiative USA Services, FCIC will provide an expanded array of
services to a growing number of Federal agencies. From publication
development and distribution, to educational media promotion, to Web
site posting, to handling of toll-free telephone calls, to responding
to citizen e-mail inquiries, FCIC will enable Federal agency clients to
deliver their information and services to citizens through programs
that have been proven to be responsive, efficient and cost effective.
The end result of all FCIC activities in fiscal year 2005 will be a
higher standard of government service that builds public confidence and
trust in all citizens.
Mr. Chairman, again I thank you for the privilege of presenting the
Federal Citizen Information Center's budget request for fiscal year
2005. I hope the committee will agree that FCIC is a valuable program
and that it will look favorably upon our request.
______
U.S. CHEMICAL SAFETY AND HAZARD INVESTIGATION BOARD
Prepared Statement of Carolyn W. Merritt, Chairman and Chief Executive
Officer
Senator Bond, Senator Mikulski, and distinguished members of the
committee, in the last 12 months, the U.S. Chemical Safety Board has
continued to advance its life-saving mission of preventing serious
accidents at facilities that produce and use chemicals. We thank the
committee for having provided the Board with increased resources for
the current fiscal year. Our current budget of $8.2 million with a
$447,000 emergency fund allows the Board to take on an unprecedented
number of significant accident investigations and studies.
The Committee's growing investments in this agency are paying off.
Earlier this year, we achieved probably the most noteworthy success in
our 6\1/2\-year history. On September 30 of last year, the Board voted
to recommend that New York City modernize the control of hazardous
materials under its existing 86-year-old municipal fire code. The
recommendation followed an 18-month Board investigation of a chemical
accident in downtown Manhattan, where at least 36 people were injured
when hazardous chemicals--improperly mixed in the basement of a
commercial building--exploded and caused the building to partially
collapse. The Board's investigation showed how weaknesses in the
antiquated fire code were handicapping New York City fire inspectors,
preventing effective oversight and enforcement of good hazardous
material safety practices in the city.
The Board's September meeting in New York City received extensive
public attention, and within weeks legislation was introduced in the
city council to begin the process of modernizing the fire code. The
Board testified twice before the city council in support of our
recommendations, and in March 2004 the city announced that it will be
hiring a new staff to spend the next couple of years overhauling the
entire city fire code. This process is expected to lead to city's
adopting an accepted model code, like the International Fire Code, as
other cities have done. At the end of this process, 8 million New
Yorkers will be considerably safer.
What is happening right now in New York City is a striking proof of
the value of independent, non-regulatory, root-cause investigations of
accidents. While society has a strong impulse to find fault and punish
wrongdoing when accidents like this occur, our own small agency is
dedicated to discovering the true root causes of these events and
promoting real safety in the future.
The Board's budget is modest in comparison with the cost of even a
single large chemical accident. As you know, we are now engaged in two
of the most complex and difficult investigations the CSB has ever
undertaken. These are the investigations of last year's catastrophic
dust explosions at West Pharmaceutical Services in Kinston, North
Carolina, and CTA Acoustics in Corbin, Kentucky. These accidents took
13 lives and injured scores of workers. Two large industrial plants
were idled, disrupting hundreds of jobs and undermining the fragile
economies of two small towns. The overall cost from these two accidents
alone will run to hundreds of millions of dollars.
The Board's independent investigations and recommendations help
prevent costly disasters like those in North Carolina, Kentucky, and
New York City. We seek additional funds for the Board's work in fiscal
year 2005 to further advance this mission. One of our main strategic
challenges over the next several years is to gain greater awareness and
acceptance of the safety improvements we have recommended, based on our
accident investigations. Many of our specific safety recommendations
are directed to individual companies that have experienced major
accidents.
It is vitally important, however, that we transmit our lessons and
recommendations to other audiences beyond the specific recommendation
recipients. To make progress nationally, we need thousands of other
companies to learn about the causes of accidents, study our findings,
and make changes in their operations--before more accidents occur.
Promoting those actions will fulfill an important part of our mission.
That is why we have requested additional funding of $450,000 for fiscal
year 2005--to disseminate our safety information in ways that lead to
new prevention initiatives. These funds will allow us to hire three new
staff and establish a working program.
I offer several examples where the Board's safety findings--put
into the right hands--can help prevent future accidents and save lives.
First, there may be hundreds of other plants around the country today
that have hidden hazards from combustible dust--chemical dust that can
explode as it recently did in North Carolina and Kentucky. Many
engineers and managers remain unaware of this danger. Getting them the
right information promptly is critically important. Despite the
notoriety surrounding the major dust explosions early in 2003, dust
explosions continue to occur with great frequency. We receive reports
of smaller dust fires and explosions on virtually a weekly basis. On
October 29, 2003, 8 months after the explosion in Kentucky, the Board
began investigating yet another fatal dust explosion, this time at an
automotive parts factory near Fort Wayne, Indiana. Two men were burned
severely; one of them later died. Clearly more needs to be done.
There are many other examples where the Board has potentially life-
saving information that needs wider understanding, especially among
small businesses that have limited resources and limited expertise in
process safety, engineering, and risk assessment. In March 2004 we held
a public meeting in Louisville, Kentucky, to approve our final report
on a fatal explosion at a food additive plant there. People in the
community were distressed to learn that straightforward, inexpensive
safety equipment could have prevented the blast. As one plant neighbor
lamented, ``For the want of a safety valve, a man was killed.'' It
sounds simple enough: providing a pressure relief system for any vessel
exposed to dangerous internal pressure. Yet in 7 of the 19 major
accidents the Board has investigated since 1998, inadequate pressure
relief was either a primary cause or a contributing factor. Once again,
more needs to be done to get the word out.
As a former industrial manager, let me tell you that nothing
motivates you to act--to make any investments, arrange any training,
install any safety equipment--like the knowledge of what terrible
disaster may happen if you fail to act. That is where the CSB, with its
almost 7 years of experience investigating the worst accident sites in
the country, has unique credibility and value.
Investigations will continue to be the mainstay of our work, and
you can see from the number of investigations begun and completed since
2002 that I have put the main emphasis in that area, consistent with
the direction from this committee. Our request seeks additional funding
to continue to bolster the Board's investigative work. First, we ask
your support to hire a new accident investigator with expertise in the
area of human factors. As many of you know who follow aviation safety,
the interface between fallible human beings and complex technological
equipment is the source of many accidents. Adding a new specialist
investigator will allow the CSB to investigate the ``human factors''
that contribute to deadly chemical accidents in complex manufacturing
plants.
Next, we also request funds to hire a new technical writer-editor.
The CSB's main products are lengthy written reports. To date, all these
reports have been funneled through a single technical writer, creating
a bottleneck to report production. Additional funds will support hiring
a second individual to accelerate report production and maintain report
quality. We also plan to further expand work to put our reports and
findings into plain language, useful to workers, members of the public,
and other non-technical users.
Over the past year, we have begun by publishing two-page plain-
language Investigation Digests of our investigative reports. Seven
digests have already been published and we are now planning to issue
digests of each of our investigation reports, in both English and
Spanish. These digests are receiving extremely positive feedback from
trade associations, labor leaders, educators, and safety trainers.
Recently, the PACE International Union requested 12,000 copies of one
of our digests for training workers on how to maintain safety during
process changes. I believe that we have just begun to tap the demand
for this kind of plain-language product.
In keeping with our primary focus on investigations, I am also
seeking an increase of $400,000 to our new investigative emergency
fund. As the committee recognizes, major accident investigations--like
our investigation in North Carolina where an entire plant was leveled--
have significant and unforeseeable costs. Physical evidence and the
recollections of eyewitnesses are short-lived, and when a major
accident occurs the Board cannot realistically await a supplemental
appropriation from Congress before beginning its work.
In this year's budget, the committee has created a $447,000
emergency fund of ``no-year money''--available until it is expended.
The use of the money is restricted to extraordinary investigative
expenses, and we have not as yet tapped any of the funds. In seeking an
increase to this fund, we recognize that extraordinary expenses for
testing and contractual support of a major investigation can easily run
over the $447,000 ceiling currently in place. For example,
extraordinary expenses from our North Carolina and Kentucky dust
explosion cases last year exceeded $450,000. Therefore we are
requesting an additional $400,000 in no-year money for fiscal year
2005, to bring the total emergency fund to $847,000. The Board is
confident that this sum will be sufficient to initiate investigations
of any major disasters that may occur.
Additional increases, detailed in our agency's Budget
Justification, will fund an expected January 2005 civilian pay increase
and modestly increased contract costs associated with the Board's
investigations, public affairs, and information technology programs.
Increased costs for the latter items are a direct result of the Board's
increased investigative workload.
The past year has been one of significant achievement by the
Chemical Safety Board. I believe that, with the committee's strong
support, the agency has become a powerful voice for the protection of
workers, plants, and communities from deadly chemical hazards. I ask
for your continued support so that the CSB may fulfill the full breadth
of responsibilities that Congress has envisioned. The remainder of my
statement provides additional details on the accomplishments of the
past year and the work that lies ahead.
HIGH LEVEL OF MISSION ACCOMPLISHMENT
In fiscal year 2003, the Board initiated a total of twelve accident
investigations, completed five accident investigations, a case study,
and a safety bulletin. The investigation reports included a total of 90
new safety recommendations to government, industry, labor, and other
organizations. A summary of the current and recently completed
investigations follows.
Recently Completed Investigations
D.D. Williamson & Co. (Louisville, Kentucky).--On the morning of
April 11, 2003, one worker was killed at a food additive plant when a
process vessel became over-pressurized and failed catastrophically. The
explosion caused extensive damage to the plant and triggered a
secondary release of 26,000 pounds of aqueous ammonia, requiring a
community evacuation. The Board approved the final investigation report
on March 12, 2004, at a public meeting in Louisville. Recommendations
were issued to the company and also to the Commonwealth of Kentucky to
increase awareness about existing regulations on the importation and
inspection of used pressure vessels.
Catalyst Systems (Gnadenhutten, Ohio).--On January 2, 2003, a
vacuum dryer containing nearly 200 pounds of benzoyl peroxide exploded,
injuring one worker and damaging a production facility. The Board
approved a case study report in October 2003 describing good practices
for handling of explosive peroxides, which are widely used in industry.
First Chemical Corp. (Pascagoula, Mississippi).--On October 13,
2002, a violent explosion occurred in a nitrotoluene distillation tower
sending heavy debris over a wide area. Debris damaged the control room
and narrowly missed a large storage tank that contained highly toxic
anhydrous ammonia. The final CSB report on this investigation was
approved at a Board public meeting in Pascagoula on October 15, 2003.
In addition to recommendations to the facility and its new owner,
Dupont, the CSB recommended that Jackson County improve its emergency
notification system to better protect and inform residents about
chemical accidents. CSB also recommended that the American Chemistry
Council improve its Responsible Care voluntary safety program to ensure
that companies like First Chemical are fully analyzing process hazards.
Kaltech Industries (New York City).--On April 25, 2002, an
explosion occurred at a sign manufacturer in the Chelsea neighborhood
of downtown Manhattan, injuring 36 people, including 14 members of the
public. The sign company occupied the basement of a mixed-use
commercial building. The CSB found that the accident resulted from
mixing two incompatible waste chemicals, lacquer thinner and nitric
acid, without following basic safety procedures.
In the course of the investigation, the Board held a public hearing
on April 16, 2003, in New York City, where city officials and fire code
experts discussed the adequacy of hazardous materials controls under
New York City's 1918-era municipal fire code. On September 30, 2003,
the full Board met again in New York City, approving its final report
and citing the city's fire code as a contributing factor in the
explosion. The Board called on the Mayor and City Council of New York
to adopt a modern set of control measures for hazardous materials, such
as those contained in the International Fire Code. On March 5, 2004,
the city announced its decision to move forward with a complete
revision of the code.
BLSR Operating Ltd. (Rosharon, Texas).--On January 13, 2003, a
vapor cloud deflagration and fire erupted at a small petroleum waste
disposal facility in rural Texas south of Houston, killing three
workers and injuring four. The CSB concluded that the fire could have
been prevented if the companies involved had recognized the hazards of
the wastes being handled and transported; had safer procedures for
handling flammable wastes; and if the companies and regulators had
better oversight of the operations. On September 17, 2003, the Board
made a series of safety recommendations to prevent a recurrence,
calling on the Texas Railroad Commission to require all permitted
drillers and producers in the State to furnish workers with appropriate
hazard information.
DPC Enterprises (Festus, Missouri).--On August 14, 2002, a chlorine
transfer hose ruptured during a rail car unloading operation at a
chlorine repackaging facility near St. Louis. Automatic emergency
shutdown valves malfunctioned and the leak continued. Several hours
elapsed before outside emergency responders in full protective gear
were able to reach the rail car and contain the leak. By that time,
48,000 pounds of potentially deadly chlorine had been released to the
atmosphere. Three workers and 63 residents sought medical treatment.
Investigators determined that the ruptured hose had the wrong
materials of construction. On December 4, 2002, the CSB issued a safety
advisory to all users of chlorine transfer hoses, urging them to verify
their hoses are correctly constructed. On May 1, 2003, the Board
approved its final report on the DPC Enterprises investigation at a
public meeting in Festus. The CSB found that better equipment
maintenance and quality assurance procedures would have prevented the
release. In addition to recommending changes at DPC Enterprises, the
Board called on Jefferson County to improve its community notification
systems for chemical emergencies. The CSB also called on the chlorine
industry and hose distributors to collaborate in making chlorine hoses
more readily identifiable throughout the supply chain.
Current Investigations
Formosa Plastics (Illiopolis, Illinois).--On April 23, 2004, five
workers were fatally killed and three others were seriously injured
when an explosion occurred in a polyvinyl chloride (PVC) production
unit at a Formosa Plastics plant located east of Springfield, Illinois.
The explosion forced a community evacuation and lighted fires that
burned for several days at the plant. The CSB is conducting a full
investigation of this accident.
MFG Chemical Inc. (Dalton, Georgia).--On the evening of April 12,
2004, a chemical reactor overheated at the MFG Chemical manufacturing
plant, releasing hydrochloric acid and allyl alcohol. The resulting gas
cloud sent 184 people to a local hospital and forced the evacuation of
nearby residents. The CSB is conducting a full investigation of this
accident.
Giant Industries (Gallup, New Mexico).--On April 8, 2004, four
workers were seriously injured when highly flammable gasoline
components were released and ignited at the Giant Industries Ciniza
refinery in northwestern New Mexico. Unknown to personnel, a shut-off
valve connecting to a distillation column was apparently in the open
position, leading to the release and subsequent explosions. The CSB is
conducting a full investigation of this accident.
DPC Enterprises (Glendale, Arizona).--On November 17, 2003, there
was a release of chlorine gas from a DPC Enterprises chlorine
repackaging facility near Phoenix. Fourteen people, including ten
police officers, required medical evaluation for possible chlorine
exposure. More than 4,000 households and businesses were ordered to
evacuate. The release occurred when excess chlorine vapors from a rail
car unloading operation were diverted to a recapture system known as a
scrubber. The scrubber malfunctioned, releasing the gas.
Hayes Lemmerz (Huntington, Indiana).--On the evening of October 29,
2003, a series of aluminum dust explosions severely burned two workers,
injured a third, and caused property damage to an automotive parts
manufacturing plant in Huntington, Indiana, near Fort Wayne. One of the
severely burned men subsequently died. CSB plans to issue its final
investigation report on this accident in fall 2004.
Isotec (Miamisburg, Ohio).--On September 21, 2003, a violent
explosion destroyed an underground distillation tower at the Isotec
chemical manufacturing plant in Miamisburg, Ohio, injuring one worker.
The explosion ruptured a carbon monoxide gas pipe and led to a
precautionary overnight evacuation of about 2000 residents. CSB expects
to issue a case study report on this accident in summer 2004.
Honeywell (Baton Rouge, Louisiana).--On July 20, 2003, there was a
release of chlorine gas from the Honeywell chemical plant in Baton
Rouge, Louisiana. The accident resulted in the hospitalization of four
plant workers and required residents within a half-mile radius to
shelter in their homes. On July 29, 2003, a worker was fatally injured
by exposure to antimony pentachloride when a gas cylinder released its
contents to the atmosphere. On August 13, 2003, two plant workers were
hospitalized for exposure to hydrofluoric acid. CSB is investigating
all three incidents; on March 30, 2004, the Board convened a community
meeting in Baton Rouge to present its preliminary findings and receive
comments from residents.
CTA Acoustics (Corbin, Kentucky).--On February 20, 2003, an
explosion and fire seriously damaged the CTA Acoustics manufacturing
plant, fatally injuring seven workers. The facility produced fiberglass
insulation for the automotive industry and used a combustible phenolic
resin powder as a binder for the fiberglass. CSB investigators have
found that the initial explosion and fire occurred on a production line
that was partially shut down and being cleaned at the time of the
incident. During the cleaning, a thick cloud of dust dispersed around
the line. The dust was likely ignited by a fire that spread from the
production line's oven, which had malfunctioned earlier and was being
operated with its door open.
On July 8, 2003, the Board held a community meeting in Corbin
attended by several hundred people. Board investigators presented their
preliminary findings and fielded questions and comments from concerned
residents and workers. The Board's investigation is now continuing with
a detailed examination of components of the malfunctioning oven.
Investigators are also examining why many CTA personnel were unaware of
the catastrophic potential of resin dust that had accumulated on
surfaces around the plant. The Board expects to issue its final report
on this investigation in late 2004.
Technic Inc. (Cranston, Rhode Island).--On February 7, 2003, a
worker was seriously injured in an explosion at a plant that
manufactures precious metal processing chemicals. The explosion
occurred during maintenance on a ventilation system connected to
multiple chemical reactors, evidently due to an accumulation of
reactive material inside. CSB plans to issue its final report on this
investigation in summer 2004.
West Pharmaceutical Services (Kinston, North Carolina).--On January
29, 2003, an explosion and fire destroyed the West Pharmaceutical
Services plant causing six deaths, dozens of injuries, and hundreds of
job losses. CSB investigators have found that the fuel for the
explosion was a fine plastic powder used in producing rubber goods.
This polyethylene dust accumulated above a suspended ceiling over a
manufacturing area at the plant and provided the major energy for the
blast.
On June 18, 2003, the Board held a community meeting in Kinston,
attended by several hundred people. Board investigators presented their
preliminary findings and took questions and comments from the audience.
The Board's final report is expected in late 2004.
Hazard Studies and Bulletins
Dust Hazards.--Prompted by the fatal dust explosions at West
Pharmaceutical Services, CTA Acoustics, and Hayes Lemmerz in 2003, the
CSB has launched a systematic investigation of dust explosion incidents
over the last several decades. Preliminary reviews point to a number of
other tragic events in recent years, including major fires and
explosions at the Malden Mills factory in Lawrence, Massachusetts
(December 1995); the Ford Motor River Rouge plant in Dearborn, Michigan
(February 1999); the Jahn Foundry in Springfield, Massachusetts
(February 1999); and Rouse Polymerics International in Vicksburg,
Mississippi (May 2002). These accidents caused numerous deaths and
injuries as well as extensive property damage and economic losses.
A main purpose of the hazard study will be to assess the overall
effectiveness of current codes and standards for preventing dust
explosions. At present, the U.S. Occupational Safety and Health
Administration (OSHA) does not have specific standards for controlling
combustible dust hazards in many industrial facilities. National
standards are in place for dust hazards in coal mines and grain
handling facilities. The Board plans to examine whether current
regulations are adequate and also how to improve awareness of dust
hazards among industrial managers nationwide.
Sodium Hydrosulfide Handling.--As an outgrowth of the Board's
November 2002 Georgia Pacific investigation, CSB staff are conducting a
review of other incidents involving sodium hydrosulfide, the chemical
which reacted at a Georgia Pacific paper mill to release toxic hydrogen
sulfide gas from a process sewer, killing two contract workers and
injuring eight others. CSB expects to issue a safety bulletin
highlighting good practices for handling sodium hydrosulfide in summer
2004.
Nitrogen Asphyxiation Hazards.--In June 2003 the CSB completed a
nationwide review of incidents similar to the March 1998 nitrogen
asphyxiation incident at Union Carbide in Hahnville, Louisiana, which
the CSB investigated. The new CSB study identified a total of 85
incidents that occurred in the United States between 1992 and 2002 and
involved exposure to dangerous nitrogen-enriched, oxygen-poor
atmospheres. Together these incidents caused 80 deaths and 50 injuries.
The CSB developed a safety bulletin on nitrogen asphyxiation hazards,
highlighting a variety of good practices to avoid such incidents. The
CSB also developed a short safety pamphlet and training slide
presentation on nitrogen hazards.
Safety Recommendations Program
Recommendations are the CSB's principal tool for promoting chemical
safety. Each recommendation has one or more specific recipients, who
are the parties best able to carry out the recommended action to
improve safety. Once the Board has issued a recommendation, CSB
recommendations staff encourage adoption and track implementation
activities. The Board aims for a cumulative 80 percent acceptance rate
for our recommendations.
We have continued to receive excellent cooperation from
recommendation recipients over the past year and have received numerous
responses indicating positive actions underway or planned. In fiscal
year 2003, the CSB successfully closed 10 outstanding safety
recommendations. While these safety actions represent important
progress that will help prevent accidents, the Board will continue to
work for faster progress in this area. As we have increased our output
of investigation reports and safety recommendations, our ability to
track adoption of those recommendations has not kept pace. As a result,
the CSB will this year be doubling the amount of staff time allocated
for closing recommendations. The Board has just completed hiring a
senior-level recommendations staff supervisor, who will oversee the
program and will report directly to the CEO.
The recommendations program continues to deliver important safety
improvements around the country. Earlier, I mentioned how the Board's
recommendations have motivated New York City to modernize its 86-year-
old fire code. Earlier, in March 2003, the Board completed an
investigation of a catastrophic chemical fire in Brazoria County,
Texas, south of Houston. The Board found that the county had no fire
code for unincorporated areas, and as a result a facility that stored
more than a million gallons of combustible petrochemicals lacked basic
fire protection--such as smoke alarms, sprinklers, and fire walls. A
small fire that started overnight spread to engulf and destroy the
entire multi-acre facility, which had employed about 100 workers. Less
than a week after receiving a safety recommendation from the CSB,
Brazoria County supervisors voted to adopt the International Fire Code.
The Board continues to press for effective actions on the control
of reactive hazards--the dangers associated with uncontrolled chemical
reactions at industrial sites. The Board's 2002 hazard study, Improving
Reactive Hazard Management, documented 167 serious reactive chemical
accidents over the past two decades. Those accidents caused more than
100 fatalities as well as numerous injuries and huge property losses.
The CSB found that more than half the chemicals involved in these
accidents are currently exempt from Federal process safety regulations.
In September 2002 the Board called on OSHA and EPA to revise those
rules to broaden coverage of reactive hazards.
In June 2003, the Board organized and co-sponsored (with OSHA and
EPA) a daylong stakeholder roundtable meeting in Washington, DC, to
discuss possibilities for reforming the process safety rules. The Board
was highly encouraged by statements from both industry and labor
representatives at the meeting in favor of broader regulatory coverage
for reactive chemicals. All parties recognized the seriousness of the
problem and the need for more actions to prevent catastrophic
accidents. In August 2003, 2 months after the meeting and less than a
year after the Board's hazard study, New Jersey acted to add reactive
chemicals to the State's list of regulated ``extraordinarily hazardous
substances''--an action that will result in additional safety controls
among New Jersey chemical plants. The Board continues to hope that
similar action will be forthcoming at the Federal level and is working
toward that end.
CSB Expands Community and Web-Based Outreach
The CSB has found great value in conducting its public business in
the communities that are directly impacted by chemical accidents. CSB
public and community meetings have garnered hundreds of audience
participants and received widespread news coverage among local and
regional news media, reaching audiences that number in the millions.
The CSB's objective, scientific investigations are proving to be one of
the most important ways that community members can learn about the
causes of chemical accidents and ways they can participate with
companies to help prevent future occurrences.
Over the past year, the Board has held public meetings, community
meetings, and hearings in Louisville, Kentucky; Pascagoula,
Mississippi; Festus, Missouri; Kinston, North Carolina; Corbin,
Kentucky; Baton Rouge, Louisiana; and twice in New York City. The Board
has continued to offer free webcasts of significant public meetings,
which reach hundreds of additional viewers who are unable to attend the
meetings in person.
In August 2003, the Board launched a completely revised version of
its popular website, CSB.gov, with streamlined access to CSB accident
reports, video webcasts, safety recommendations, and other information.
Selected information is now being made available in the Spanish
language as well as English, and we plan to increase this service in
coming months. In December 2003 the Board launched a new live incident
news service from CSB.gov, with updates from around the world every 15
minutes, a popular feature among safety professionals who track
chemical accidents.
INSPECTOR GENERAL OVERSIGHT
During fiscal year 2004, the CSB will be transitioning to a new
Inspector General (IG) shared with the Environmental Protection Agency.
In January 2004, the CSB received its last program audit report from
its outgoing Inspector General, the IG of the Department of Homeland
Security (formerly the IG of the Federal Emergency Management Agency).
That report included 11 new recommendations for improving agency
operations. The CSB responded to all 11 recommendations and will be
moving forward with implementation over the coming year.
While the report highlights some important areas for improvement,
particularly in the tracking of chemical incidents and open safety
recommendations, I was pleased by the generally positive conclusions of
this final audit report. The Inspector General found, for example, that
``. . . the CSB increased its productivity and stability under new
management during the past year. The CSB is progressing toward meeting
its statutory responsibilities and has increased the number of
investigations it performs.'' (IG Report, p. 1) Of note to the
committee will be the outgoing Inspector General's assessment that
``the CSB lacks the resources to investigate all accidents within its
purview.''
HOMELAND SECURITY
In accordance with new committee report language this year, the CSB
has sought discussions with the Department of Homeland Security (DHS)
on a new Memorandum of Understanding (MOU). The MOU will describe terms
of cooperation between the two agencies. The Board will report back to
the committee by June 2004 on its progress, and we look forward to
further support and encouragement from the committee to promote the
swift negotiation and completion of this agreement.
I also draw the committee's attention to recent Board findings that
have important ramifications for homeland protection. CSB's
investigations typically include an examination of the adequacy of
local emergency response to chemical accidents. Three of our recent
investigations revealed a lack of sufficient local preparation for a
major chemical event. I refer to Board investigations at First Chemical
Corporation in Pascagoula, Mississippi; Isotec in Miamisburg, Ohio; and
DPC Enterprises in Festus, Missouri.
These investigations found that local authorities have difficulty
notifying residents of a chemical release and informing them of the
appropriate safety actions, such as evacuation or sheltering. In
Missouri, lack of adequate planning beforehand prevented emergency
responders from containing a serious chlorine release for several
hours. If the wind had been blowing in a slightly different direction
that day, the plume would have drifted over a residential area, with
potentially grave consequences. While I believe all these communities
are working aggressively to address the gaps that were uncovered, it is
likely that other communities around the country may have similar
shortcomings in their preparations to survive a terrorist attack on a
chemical plant.
We communicated the Board's concerns in this area to Homeland
Security oversight committee members in correspondence last year. We
also anticipate discussing these concerns with DHS officials as we
proceed with an interagency agreement. I thank the committee for
seeking the Board's assistance and cooperation on these vital homeland
security issues. As the foregoing examples show, I believe this is an
area where the Board can make a positive contribution.
CONCLUSION
The last 18 months mark a major turnaround for the Chemical Safety
Board. Following several years of organizational challenges, the CSB is
now producing considerable value for the taxpayers--issuing reports,
studies, and recommendations that safeguard workers, plants, and the
public from chemical accident hazards. The Board is back on track as a
strong, nimble Federal agency that works closely with industries and
communities that suffer deadly chemical disasters. The CSB's work helps
to save lives and make plants and communities safer. I urge the
committee's support for modest budget increases that will allow the
Board to be even more effective in the future.
NONDEPARTMENTAL WITNESSES
[Clerk's Note.--The following testimonies were recieved by
the Subcommittee on VA, HUD and Independent Agencies for
inclusion in the record. The submitted materials relate to the
fiscal year 2005 budget request.
The subcommittee requested that public witnesses provide
written testimony because, given the Senate schedule and the
number of subcommittee hearings with Department witnesses,
there was not enough time to schedule hearings for
nondepartmental witnesses.]
Prepared Statement of the American Society for Microbiology
The American Society for Microbiology (ASM) appreciates the
opportunity to submit testimony on the fiscal year 2005 appropriation
for the Environmental Protection Agency (EPA). The ASM is the largest
single life science organization in the world, comprised of more than
43,000 members. ASM members are involved in research to improve human
health and the environment and work in academic, industrial, medical,
and governmental institutions worldwide. The ASM's mission is to
enhance the science of microbiology, to gain a better understanding of
life processes, and to promote the application of this knowledge for
improved health, and for economic and environmental well-being.
The EPA's mission is to protect human health and to safeguard the
natural environment (air, water, and land). The ASM believes that sound
public policy for environmental protection depends on adequately funded
programs of intramural and extramural research based on scientific peer
review to assure that support is awarded to research that has both
quality and relevance. The Nation spends comparatively little on
environmental research, even though health and the environment are
often integrally related. It is essential that the EPA's Science to
Achieve Results Research (STAR) program and Indoor Air Quality
research, Clean and Safe Water research, and Surface Water Protection
and Drinking Water research programs be adequately funded in the EPA
budget.
Unfortunately, the EPA budget proposes a 12 percent funding cut for
EPA science and technology programs below the fiscal year 2004
allocation, despite the importance of these programs to addressing
increasingly complex environmental problems. ASM urges Congress to
provide increased funding for EPA science and technology programs. EPA
depends on excellent research programs to evaluate risk, develop and
defend protective standards, anticipate future health and environmental
threats, and to identify solutions to environmental problems.
STAR GRANTS PROGRAM
EPA's Office of Research and Development (ORD) manages the STAR
grants program, which is a competitive, peer-reviewed, extramural
research grants program intended to increase access to the Nation's
best scientists and engineers in academic and other non-profit research
institutions. Research sponsored by the STAR program allows the EPA to
fill information gaps that are not addressed completely by its
intramural research programs, and to respond to new and emerging issues
that the agency's laboratories are not able to address.
The EPA budget requests a 35 percent, or $35 million, cut in
funding for the STAR grants program from fiscal year 2004. The National
Academy of Sciences (NAS) has urged the continuation of and investment
in the STAR program. In 2003, the NAS released a report titled, ``The
Measure of STAR: Review of the U.S. Environmental Protection Agency's
Science to Achieve Results (STAR) Research Grants Program'', which
argues that the STAR grants are a critical means for the agency to
access scientific expertise that it does not have in-house, and to
respond quickly to emerging issues.
Since its inception in 1995, STAR research projects have resulted
in articles in highly respected, peer-reviewed journals, and have
already helped to improve our understanding of the causes, exposures
and effects of environmental pollution and microorganisms in the
environment. ASM urges Congress to fully restore funding for the STAR
grants program to the fiscal year 2004 level of $100 million. At
present, STAR focuses on critical research areas, including the health
effects of particulate matter, drinking water, water quality, global
change, ecosystem assessment and restoration, human health risk
assessment, endocrine disrupting chemicals, pollution prevention and
new technologies, children's health, and socio-economic research.
A typical STAR grant is funded at $500,000, with full funding the
first year, and may last up to 3 years. With the proposed budget
request, approximately 70 fewer individual research projects will be
awarded. The proposed 35 percent cut in funding for the STAR program
would:
--Eliminate 50 grants in fiscal year 2005 across all areas of the
ecological research program.
--Redirect $5 million from research to a pollution prevention
outreach program in another part of the EPA. Redirecting these
funds would eliminate $3 million in STAR funding, which is
EPA's contribution to the EPA-National Science Foundation (NSF)
partnership.
--Cut $4.9 million, which would eliminate the entire STAR grant
research program on endocrine disruptors. The funds would
otherwise have supported research on the extent to which humans
and wildlife are exposed to endocrine disruptors, an area that
the NAS and the World Health Organization have identified as an
important research gap.
--Eliminate STAR research in fiscal year 2005 on how and where
mercury moves through the environment.
--Eliminate ORD's contribution to the five EPA established,
university-based centers affiliated with 22 universities to
address concerns about hazardous substances in the environment.
STAR FELLOWSHIP PROGRAM
The EPA's Graduate STAR Environmental Fellowship Program has been
an outstanding success in attracting some of the best young talent to
environmental research. Examples of research conducted in the STAR
program include new methods of classifying biologically impaired
watersheds and the human health effects of particulate matter. This
type of research is unique to the EPA and is integral to its role as
steward of the environment. Unfortunately, the EPA budget proposes a 40
percent, or $4 million, cut for fiscal year 2005.
ASM believes the Fellowship program is one of the initiatives the
Federal Government must fully support to ensure that the Nation is
prepared to answer the complex scientific questions of the future. Both
the public and private sectors will benefit from a steady stream of
well-trained environmental specialists. More than 1,300 applicants
compete each year for approximately 100 fellowships through a rigorous
merit review process.
The proposed cut of the fellowship program will significantly
reduce the number of fellowships granted. ASM urges Congress to restore
funding for the STAR fellowship program to its fiscal year 2004 level
of $10 million. Additionally, ASM shares the concern raised by the
EPA's Science Advisory Board (SAB) that without the Fellowship program,
the EPA may be unable to replace many of the EPA scientists nearing
retirement with top-level scientists. This issue will become more
pronounced as time goes on, increasing the need for more support for
this fellowship program.
WATERBORNE PATHOGENS
Although the American public enjoys safe drinking water, waterborne
disease outbreaks caused by pathogenic bacteria, viruses, and parasites
continue to be reported periodically. Surface water and groundwater
sources can be contaminated with many different types of chemical
substances and microorganisms. Furthermore, the disinfection process
itself creates a number of potentially toxic chemical byproducts. EPA
conducts the necessary research to provide a strong scientific
foundation for standards that limit the public's exposure to drinking
water contaminants and disinfection byproducts. This research supports
major regulatory activities including the Microbial/Disinfection
Byproduct Rules, and future decisions on unregulated pathogens and
chemicals. EPA is conducting research on waterborne pathogens, arsenic,
disinfection byproducts, and other chemical contaminants to protect the
Nation.
INDOOR AIR QUALITY
Every breath we take, indoors and out, we inhale not just life-
sustaining oxygen but dust and smoke, chemicals, microorganisms, and
particles and pollutants that float on the air. The average human
inhales approximately 10 cubic meters of air daily. Because most people
spend about 22 hours each day indoors, poor indoor air quality (IAQ)
affects both public health and national productivity. At present, a
shortage of IAQ research leaves much unknown about cause-and-effect
specifics, but there is little doubt that contaminated buildings are
attracting more attention as occupants develop often vague symptoms
followed by remediation, litigation, and other costly outcomes.
Although IAQ issues are often viewed as a problem of modern
buildings, connections made between air and disease date to ancient
times. Long before the germ theory of disease and its indictment of
pathogenic microorganisms, humans associated foul miasmas like ``sewer
gas'' with infectious diseases such as malaria. Initially, prevention
of disease transmission by infectious pathogens became the principal
concern of early public health advocates. Today we understand that
airborne non-pathogenic organisms, fragments of microbial cells, and
by-products of microbial metabolism also cause problems. ASM believes
that more research is needed in this area for the safety and protection
of human health.
CONCLUSION
Well-funded research is needed to address emerging issues affecting
the environment and human health. For EPA to fulfill its mission to
protect human health and to safeguard the natural environment, ASM
urges Congress to increase funding for the EPA's science and technology
programs to their fiscal year 2004 level.
The ASM appreciates the opportunity to provide written testimony
and would be pleased to assist the subcommittee as it considers its
appropriation for the EPA for fiscal year 2005.
SCHEDULE OF FEDERAL AWARDS 2004
--------------------------------------------------------------------------------------------------------------------------------------------------------
Federal Grants Receipts or Grants
Federal Grantor/Pass-through Grantor/Program Title Cost CFDA Program or Receivable 1/ Revenue Disbursements/ Receivable 12/
Center Number Award Amount 1/2004 Recognized Expenditures 31/2004
--------------------------------------------------------------------------------------------------------------------------------------------------------
MAJOR PROGRAMS:
Resident Postdoctoral Research................ 783 93.283 $999,381.00 $89,902.49 .............. .............. $89,902.49
-----------------------------------------------------------------------------------------------------
Total Major Programs........................ ......... ......... 999,381.00 89,902.49 .............. .............. 89,902.49
-----------------------------------------------------------------------------------------------------
OTHER FEDERAL ASSISTANCE:
HHS:
NIGMS-MARC................................ 789 93.88 431,300.00 .............. .............. .............. 0
Environmental Micoorganisms............... 694 93.856 10,000.00 .............. .............. .............. 0
DNA Repair and Mutagenesis................ 457 93.393 25,000.00 .............. .............. .............. 0
Summer Institute.......................... 848 93.856 24,000.00 532.99 .............. .............. 532.99
Conf Biofilms............................. 425 93.121 25,000.00 25,000.00 .............. .............. 25,000.00
Environmental Pathogens................... 694 93.856 10,000.00 .............. .............. .............. 0
Microbial Triggers of Disease............. 666 93.855 5,000.00 .............. .............. .............. 0
Candida and Candidiasis................... 434 93.121 10,000.00 .............. .............. .............. ..............
National Science Foundation:
Plant Biotechnology....................... 678 47.074 15,000.00 .............. .............. .............. 0
Pathogens................................. 697 47.074 110,000.00 33,608.72 .............. .............. 33,608.72
Sub Contract BioSciEd Net................. 787 47.076 100,000.00 30,838.75 .............. .............. 30,838.75
Beyond Microbial Genomics................. 691 47.074 15,000.00 .............. .............. .............. ..............
U.S. Department of Energy:
DNA Repair and Mutagenesis................ 457 81.049 20,000.00 .............. .............. .............. 0
Prokaryotic Development................... 472 81.049 10,000.00 .............. .............. .............. 0
Geobiology................................ 675 81.049 15,000.00 .............. .............. .............. 0
Microbial Ecology and Genomics............ 676 81.049 25,000.00 .............. .............. .............. 0
Multicellular Cooperation................. 671 81.049 15,000.00 .............. .............. .............. 0
Systems Microbiology...................... 691 ......... 10,000.00 6,461.06 .............. .............. 6,461.06
USDA:
Conference Salmonella..................... 421 10.206 10,000.00 10,000.00 .............. .............. 10,000.00
Pre-harvest Food Safety................... 663 10.001 5,000.00 5,000.00 .............. .............. 5,000.00
Pre-harvest Food Safety................... 663 10.2 25,000.00 19,350.00 .............. .............. 19,350.00
Pre-harvest Food Safety................... 663 10.206 10,000.00 7,000.00 .............. .............. 7,000.00
Conf Salmonella Pathogenesis.............. 421 10.206 10,000.00 .............. .............. .............. 0
EPA:
Microbial Eolocy.......................... 676 66.5 20,000.00 .............. .............. .............. 0
Infectious Disease GI Tract............... 670 66.606 50,000.00 .............. .............. .............. 0
PO HHS/FDA Pre-harvest Food............... 663 ......... 10,000.00 10,000.00 .............. .............. 10,000.00
PO US Dept of Army........................ 475 ......... 10,000.00 .............. .............. .............. 0
-----------------------------------------------------------------------------------------------------
Total Other Awards...................... ......... ......... 1,025,300.00 147,791.52 0.00 0.00 147,791.52
-----------------------------------------------------------------------------------------------------
Total Federal Awards.................... ......... ......... 2,024,681.00 237,694.01 0.00 0.00 237,694.01
--------------------------------------------------------------------------------------------------------------------------------------------------------
______
Prepared Statement of the American Society for Microbiology
The American Society for Microbiology (ASM) appreciates the
opportunity to submit testimony on the fiscal year 2005 appropriation
for the National Science Foundation (NSF). The ASM is the largest
single life science membership organization in the world, comprised of
more than 43,000 members. The ASM's mission is to enhance the science
of microbiology, to gain a better understanding of life processes, and
to promote the application of this knowledge for improved health, and
for economic and environmental well-being.
The NSF is the premier source of Federal support for mathematic,
scientific, and engineering research and education across many
disciplines. NSF support plays a critical role in the health of the
Nation's academic system, which is the source of new ideas and human
resources in science. Although NSF represents less than 4 percent of
the total Federal funding for research and development (R&D), it
accounts for approximately 13 percent of all Federal support for basic
research and 40 percent of non-life-science basic research at U.S.
academic institutions. NSF's broad support for basic research,
particularly at U.S. academic institutions, provides not only a key
source of funds for discovery in many fields, but also unique
stewardship in developing the next generation of scientists and
engineers. NSF is also the principal Federal agency charged with
promoting science and engineering education at all levels and in all
settings, from pre-kindergarten through career development. This helps
ensure that the United States has world-class scientists,
mathematicians and engineers, and well-prepared citizens.
ASM appreciates the support that both the Congress and the
administration have demonstrated for the National Science Foundation
through the enactment of the NSF Authorization Act of 2002 (Public Law
107-368). Public Law 107-368 authorizes a 5-year period of 15 percent
annual budget increases for the NSF. We encourage Congress to act upon
their commitment and increase funding for NSF by 15 percent, or $837
million, for fiscal year 2005, raising the NSF budget to $6.4 billion.
Increasing NSF's budget by 15 percent will allow for additional
investments in grants, fellowships, and in cross-cutting research
priorities like Biocomplexity in the Environment, and Nanoscale Science
and Engineering. This recommendation is consistent with that of the
Coalition for National Science Funding.
RESEARCH GRANT FUNDING
Fundamental research in the biosciences has laid the foundation for
exploring the human genome and now offers new possibilities for
understanding the living world from molecules to organisms to
ecosystems, providing new discoveries applicable to health,
environment, agriculture, and energy. The fiscal year 2005 budget
request for NSF is $5.57 billion, a 3 percent or $167 million increase
over fiscal year 2004. This current level of funding will provide for a
2.2 percent increase in the average size of awards to $142,000 per year
for an average duration of 3 years, assuming there will be a decrease
in the number of awards from fiscal year 2004. For core research areas
of the biological sciences, it will increase the average size of awards
to $190,750 (median award size $140,250) per year for 3 years from
$181,670 (median award size $138,070) per year in fiscal year 2004.
However, the number of research grants will drop by 2.5 percent, and
the funding rate will drop by 1 percent to 19 percent.
Improving productivity of researchers requires increasing the
average award size. ASM applauds efforts to increase the average award
size, but is disappointed with the decrease in the number of research
grants that will be funded. Increasing NSF's budget by 15 percent would
allow NSF to increase the size of the awards and increase the number of
grants awarded.
The biological sciences program provides support for research to
advance understanding of the underlying principles and mechanisms
governing life. Research ranges from the study of the structure and
dynamics of biological molecules, such as proteins and nucleic acids,
through cells, organs and organisms, to studies of populations and
ecosystems. It encompasses processes that are internal to the organism
as well as those that are external, and includes temporal frameworks
ranging from measurements in real time through individual life spans,
to the full scope of evolutionary time.
BIOCOMPLEXITY IN THE ENVIRONMENT
As the world faces significant scientific and societal challenges,
including the prospect of rapid environmental and climatic changes,
biological threats, and the complicated question of long-term
environmental security, the NSF has developed an interdisciplinary
program called Biocomplexity in the Environment (BE). BE is designed to
give NSF the capability to respond to the demand for new approaches to
investigating the interactions of all living things at all levels--from
their molecular structures to genes to organisms to ecosystems to urban
centers--and the environment. Fundamental study of complex
environmental systems is a key element of local, national, and global
security and critical to the development of new scientific and
technological capabilities.
Microorganisms are key components of soils and aquatic
environments, and play profoundly important roles in the distribution
and activity of plants and animals. Understanding the distribution and
activities of microorganisms is essential for addressing numerous
environmental challenges. However, only a small percentage of Earth's
microbial species are known, which leaves large gaps in our ability to
predict the directions of environmental change.
Two priority areas within BE are relevant to the enhanced
fundamental understanding of microorganisms important to nature and to
human health. These priority areas are:
--Microbial Genome Sequencing is an interagency effort with the U.S.
Department of Agriculture (USDA) which uses high throughput
sequencing of microorganisms of fundamental biological
interest, agriculture, forestry, food and water quality, or
value in understanding potential agents of bioterrorism. Genome
sequence information will provide the basis for understanding
the physiology, pathology, and ecology of these organisms. This
knowledge can be applied to detection of organisms and to
understanding microbial adaptation to extreme environments,
which could lead to the economic uses of microorganisms.
Emphasis will also be placed on sequencing of microbes and
their association with other organisms, such as plants,
animals, and other microbes.
--Ecology of Infectious Diseases is an interagency partnership with
the National Institutes of Health (NIH) for the development of
predictive models and discovery of principles for relationships
between environmental factors and transmission of infectious
agents. Potential benefits include the development of disease
transmission models, understanding unintended health effects of
environmental change, and improved prediction of disease
outbreaks, emergence, and reemergence. Examples of
environmental factors include habitat transformation,
biological invasion, biodiversity loss, and contamination.
This effort to expand multidisciplinary research will result in
more complete understanding of natural processes, of human behaviors
and decisions in the natural world, and ways to use new technology
effectively to sustain life on earth. The President has requested level
funding for BE in fiscal year 2005. Increasing NSF's budget by 15
percent would allow NSF to increase its investment in the BE effort.
NANOSCALE SCIENCE AND ENGINEERING
The Nanoscale Science and Engineering effort encompasses the
systematic organization, manipulation and control of matter at atomic,
molecular, and supramolecular levels. With the capacity to manipulate
matter at the nanometer scale (one-billionth of a meter), science,
engineering, and technology are realizing revolutionary advances, in
areas such as individualized pharmaceuticals, new drug delivery
systems, more resilient materials and fabrics, catalysts for industry
and computer chips.
NSF has been a pioneer among Federal agencies in fostering the
development of nanoscale science. ASM supports the President's request
of $305 million in fiscal year 2005, a 20.3 percent increase over
fiscal year 2004, for the Nanoscale Science and Engineering effort. Of
this amount, $5.85 million will go the Biological Sciences, a 10.2
percent increase over fiscal year 2004. A total of $174 million will be
used for Fundamental Research and Education, and of this:
--$24.5 million will be devoted to Biosystems at the Nanoscale, a
$3.5 million increase over fiscal year 2004. Biosystems at the
Nanoscale support the study of biologically based or inspired
systems that exhibit novel properties and potential
applications. Potential applications include improved drug
delivery, biocompatible nanostructured materials for
implantation, exploiting functions of cellular organelles,
devices for research in genomics, proteomics and cell biology,
and nanoscale sensory systems, such as miniature sensors for
early detection of cancer.
--$11.5 million for Nanoscale Processes in the Environment to support
studies on nanoscale physical and chemical processes related to
the trapping and release of nutrients and contaminants in the
natural environment. Potential benefits include artificial
photosynthesis for clean energy and pollution control, and
nanoscale environmental sensors and other instrumentation.
--$22.2 million devoted to Multi-scale, Multi-phenomena Theory,
Modeling and Simulation at the Nanoscale, to support theory,
modeling, large-scale computer simulation and new design tools
and infrastructure in order to understand, control, and
accelerate development in new nanoscale regimes and systems.
Research at the nanoscale is needed to advance the development of
the ultra-small technology that will transform electronics, materials,
medicine and many other fields.
NATIONAL ECOLOGICAL OBSERVATORY NETWORK
The National Ecological Observatory Network (NEON) will be a
continental scale research instrument consisting of geographically
distributed infrastructure, networked via state-of-the-art
communications, for integrated studies to obtain a predictive
understanding of the Nation's environment. It will transform ecological
research by enabling studies on major environmental challenges at
regional to continent scales. Scientists and engineers will use NEON to
conduct real-time ecological studies spanning all levels of biological
organization and temporal and geographical scales.
The President has requested a $12 million increase for NEON over
fiscal year 2004 for a total of $16 million in fiscal year 2005. In
fiscal year 2004, $4 million was allocated to the Biological Sciences
Directorate to develop the NEON Coordinating Consortium (NCC) and
Project Office. These units will refine the NEON project, scope,
budget, and schedule for research infrastructure. The President has
requested level funding for fiscal year 2005 for finalizing the
development of the NCC and Project Office, and for funding research on
enabling technologies. The remaining $12 million will go to the Major
Research Equipment and Facilities Construction Account to initiate
construction of the first two NEON observatories.
It is estimated that 1,400 field biologists will use NEON annually.
A larger number of scientists, students, resource managers, and
decision makers will make use of NEON data, both directly and
indirectly, through the network capabilities and data distribution and
sharing technologies via the network and the internet. Increasing NSF's
budget by 15 percent would allow NSF to increase its investment in
NEON. NEON is a resource that has the potential to transform ecological
research.
CONCLUSION
The NSF plays a key role in support of basic science in the United
States and knowledge gained from NSF studies directly benefits industry
and contributes to the Nation's economy and international competitive
position. The NSF is in a singular position among all the Federal
research and development agencies to support fundamental research in
important areas including, microbiology and molecular biology. ASM
urges Congress to protect ongoing and future U.S. scientific and
technological advancements by supporting a 15 percent budget increase
in fiscal year 2005 for the NSF. The ASM also believes NSF should
continue to emphasize fundamental, investigator initiated research,
research training, and science education as its highest priorities.
The ASM appreciates the opportunity to provide written testimony
and would be pleased to assist the subcommittee as it considers its
appropriation for NSF for fiscal year 2005.
______
Prepared Statement of the Association of State Drinking Water
Administrators
INTRODUCTION
The Association of State Drinking Water Administrators (ASDWA) is
pleased to provide testimony to the VA, HUD and Independent Agencies
Subcommittee on Fiscal Year 2005 Appropriations for the U.S.
Environmental Protection Agency. ASDWA represents the State drinking
water programs in each of the 50 States and territories in their
efforts to ensure the provision of safe, potable drinking water to more
than 275 million consumers nationwide. ASDWA's primary mission is the
protection of public health through the effective management of State
drinking water programs that implement the Safe Drinking Water Act
(SDWA).
TODAY'S MESSAGE
States Need Increased Federal Support
State drinking water programs strive to meet their public health
protection goals through two principal funding programs--the Public
Water System Supervision Program (PWSS) and the Drinking Water State
Revolving Loan Fund Program (DWSRF). Since enactment of the 1996 Safe
Drinking Water Act Amendments, the State role in public health
protection has increased dramatically in both scope and complexity.
Since September 2001, State drinking water programs have accepted
additional responsibilities to work with all public water systems to
ensure that critical drinking water infrastructure is protected and
that plans are in place to respond to a variety of possible emergency
scenarios.
HOW STATES USE FEDERAL FUNDS
The PWSS Program
To meet the requirements of the SDWA, States have accepted primary
enforcement authority for oversight of ongoing regulatory compliance
and technical assistance efforts for 160,000 public water systems to
ensure that potential health based violations do not occur or are
remedied in a timely manner. Going beyond these longstanding core
responsibilities, since 1996, State drinking water programs have
participated in the development and implementation of more than 20 new
regulations and strategic initiatives designed to enhance the
protection of public health. States are also implementing an array of
proactive initiatives to protect public health from ``source to tap''--
including source water assessments and controls; technical assistance
with water treatment and distribution; and enhancement of overall water
system capacity. State activities go far beyond simply ensuring
compliance at the tap.
The DWSRF Program
The DWSRF program is less than 10 years old, having been created
under the SDWA Amendments of 1996. In that short period of time, State
drinking programs have accomplished much. Through prudent fiscal
management and oversight, States have managed to leverage their
resources to fund nearly $7 billion in low or no interest loans to more
than 3,000 communities. Of those totals, approximately 74 percent of
the loans and 40 percent of the dollars have gone to smaller
communities serving populations of less than 10,000 people.
New Security Responsibilities
Since the terrorist attack in September 2001, States have taken
extraordinary measures to meet the security-related needs of the
drinking water community. State drinking water programs have endeavored
to respond to the significant number of requests for assistance,
information, and financial support from the systems under their purview
and to determine how best to ensure that drinking water supplies are
protected in the event of further terrorist activities. States have
also been instrumental in providing support and assistance to systems
in assessing whether a contamination event has occurred and, if so,
evaluating the magnitude of the public health implications. States have
devised training and technical assistance programs, initiated new
communications structures, and begun the work of integrating the
concepts of enhanced security concerns throughout all aspects of the
drinking water program.
WHY INCREASED FUNDING IS NEEDED
States must accomplish all of the above-described activities and
take on new responsibilities while responding to escalating pressures
to further cut their budgets, streamline their workforces, and operate
with less State-provided financial support. State drinking water
programs have always been expected to do more with less and States have
always responded with commitment and ingenuity. However, State drinking
water programs are now in crisis.
In 2002, ASDWA asked each State to complete a self-analysis of
their program needs. All 50 State drinking water programs responded.
The results, compiled into a document entitled ``Public Health
Protection Threatened by Inadequate Resources for State Drinking Water
Programs: An Analysis of State Drinking Water Programs Resources,
Needs, and Barriers'', document a shortfall of approximately $230
million between the funds available to States and the amount needed to
fully implement State drinking water programs. This ever-widening gap
is projected to grow to approximately $370 million by 2006.
Although the 1996 SDWA Amendments authorized the PWSS Program at
$100 million per year and the DWSRF at $1 billion per year; through
fiscal year 2003, the last year for which comparable figures are
available, funds for neither program were requested or appropriated at
the authorized amount. Through fiscal year 2003, States and territories
received only 87 percent of the PWSS authorization and just 82 percent
of authorized levels for DWSRF funds that enable them to make loans to
drinking water systems. In fiscal year 2003, although the PWSS
appropriation was increased to $102.6 million, the amount has been
reduced by an across-the-board rescission and the approximately 7
percent taken off the top to meet EPA tribal and direct implementation
needs. No increase was provided for the DWSRF. These actions, in
effect, have amounted to a net decrease in funds each year as the
spending power of these dollars steadily declined due to inflation and
cost of living increases. Meanwhile, the demands on State drinking
water programs have increased exponentially, as discussed earlier.
States must contribute a 25 percent match to be able to receive
Federal PWSS program funds and 20 percent to receive their DWSRF
funding allocation. Because the needs are so great, States also bring
additional dollars to the table through fee programs, general fund
allocations, and other sources. However, many States no longer have the
luxury--or ability--to continue to overmatch their contributions to
support and sustain Federal programs.
FISCAL YEAR 2005 REQUEST LEVELS AND SDWA PROGRAM OBLIGATIONS
The PWSS Program
This year, the State PWSS program request level in the
administration's budget has increased to $105.1 million. If approved,
and unless the request amount suffers another rescission, this action
would provide an additional $2 million for States to use for public
health protection activities. While States are appreciative of these
new funds, they are a literal drop in the bucket (an average of $40,000
per State), in view of the magnitude of the needs documented in the
aforementioned State resource needs report. Substantial new
appropriations are needed for the PWSS program and we would recommend
that the subcommittee double the requested level to begin to address
the State resource gap or at least provide funding that would represent
substantial movement in that direction. These new dollars are sorely
needed so that States can manage to maintain effective implementation
of all of their pre-1996 core responsibilities and take on an
overwhelming list of additional tasks, programs, and regulatory
implementation requirements such as those for the arsenic,
radionuclides, and microbial disinfection byproducts rules. States also
must continue in their responsibilities to ensure that public health is
protected through preventive measures such as waterborne disease
surveillance, risk communication, sanitary surveys, laboratory
certification, permitting, and emergency response.
ASDWA respectfully requests that the subcommittee appropriate an
amount substantially greater than the requested amount of $105.1
million in recognition of the current State drinking water resource gap
in order to support the PWSS Program for fiscal year 2005. (Doubling of
the requested amount would be in the range of the current gap.)
The DWSRF Program
The fiscal year 2005 DWSRF program request in the President's
budget is once again $850 million. The primary purpose of the DWSRF is
to improve public health protection by facilitating water system
compliance with national primary drinking water regulations through the
provision of loans to improve drinking water infrastructure. The 1999
EPA Drinking Water Infrastructure Needs Survey indicated that water
system needs total $150.9 billion over the next 20 years to comply with
SDWA mandates and that $102.5 billion is needed today to address
pressing public health needs. In 2002, EPA developed its own ``gap
analysis'' and reported that drinking water capital needs over a 20-
year period (2000-2019) are estimated to range from $154 billion to
$446 billion with a point estimate of $274 billion. Of note is that
neither of these assessments included the impacts of security upgrades
now being required of water systems. Despite these documented needs,
the maximum DWSRF appropriation has been $850 million. Without
significant increases, the DWSRF will never be able to meet the SDWA
compliance and public health protection goals for which it was
designed.
ASDWA respectfully requests that the subcommittee appropriate at
least $2 billion to support the DWSRF Program for fiscal year 2005 and
further requests that, in the absence of authorizing legislation for
fiscal year 2004 and beyond, the backlog of $3.48 billion in unfunded
authorizations through fiscal year 2003 also be appropriated to assist
States and water systems in meeting current public health and security
related infrastructure needs.
Security Responsibilities
The fiscal year 2005 budget request includes $5 million for State
drinking water programs to continue to expand their security
activities, particularly for small and medium systems. States are
obligated to provide technical assistance, training, and support as
drinking water systems strive to meet the security requirements imposed
by the Bioterrorism Act of 2002. Since September 11, States have worked
to provide accurate and timely information to the drinking water
community on potential threats, effective countermeasures, and
available technical assistance to enhance the physical and cyber
security programs of water utilities. States have developed coordinated
communications processes within and across State government, with
appropriate Federal agencies, and with the drinking water utilities
under their purview to ensure that immediate response can be made in
the event of a credible threat or event.
ASDWA respectfully requests that the subcommittee appropriate at
least $5 million to support State drinking water program security
initiatives in fiscal year 2005.
STATE ACCESS TO DWSRF FUNDS
ASDWA's own research into State program needs to sustain the
effectiveness of this public health program under the DWSRF shows that
States face significant barriers in accessing and utilizing the funds
effectively: 62 percent of the States cannot meet the multiple match
requirements (basic program access plus additional match dollars to be
able to use certain set-aside funds) attached to the DWSRF and 76
percent of all State drinking water programs have difficulty in
overcoming the inherent tension between use of the fund for
administrative versus infrastructure needs. One ``no cost'' solution
would be to eliminate the dollar-for-dollar match requirement for the
10 percent program management set-aside. (The current dollar-for-dollar
match requirement is on top of an existing 20 percent match for the
fund as a whole; thus making it, in reality, a 120 percent match
requirement.) This action would require no new funds and would go a
long way toward helping State drinking water programs meet their
obligations under the SDWA.
ASDWA advocates an amendment to the DWSRF provisions at SDWA
Section 1452(g)(2) that would eliminate the additional dollar-for-
dollar match requirement for States to access the 10 percent set-aside
for program implementation activities and would appreciate the support
of the Appropriations Committee in this regard.
CONCLUSION
A strong drinking water program supported by the Federal-State
partnership will ensure that the quality of drinking water in this
country will not deteriorate and, in fact, will continue to improve--so
that the public can be assured that a glass of water is safe to drink
no matter where they travel or live. States are willing and committed
partners. Additional Federal financial assistance is needed, however,
to meet new regulatory and security needs. In 1996, Congress provided
the authority to ensure that the burden would not go unsupported. In
2004, ASDWA asks that the promise of that support be realized.
ASDWA appreciates the opportunity to provide this testimony to the
subcommittee for its consideration and stands ready to work with the
subcommittee to ensure the continued protection of public health
through provision of safe drinking water.
______
Prepared Statement of the American Geological Institute
Chairman and Members of the subcommittee, I appreciate this
opportunity to present testimony on behalf of the American Geological
Institute (AGI) in support of fiscal year 2005 appropriations for the
National Science Foundation (NSF). The fundamental research funded by
NSF has fueled our Nation's economic growth and contributes to
improvements in our health, safety, and quality of life. This
subcommittee has shown leadership in expanding the Federal investment
in fundamental research, leadership that will be even more critical in
the coming year. AGI urges the subcommittee to provide the requested
amount for the EarthScope project in the Major Research Equipment,
Facilities and Construction account and to go beyond the President's
request by expanding support for the Geosciences Directorate within the
Research and Related Activities account. Both EarthScope and the core
programs of the Geosciences Directorate represent an important
investment in the future of our Nation and our planet.
AGI also supports the Coalition for National Science Funding and
its stated target of a 15 percent increase in total funding for the
Foundation. This is the amount specified in Public Law 107-368 enacted
in December 2002.
AGI is a nonprofit federation of 42 geoscientific and professional
societies representing more than 100,000 geologists, geophysicists, and
other earth scientists. Founded in 1948, AGI provides information
services to geoscientists, serves as a voice for shared interests in
our profession, plays a major role in strengthening geoscience
education, and strives to increase public awareness of the vital role
the geosciences play in society's use of resources and interaction with
the environment.
Geoscience research plays an increasingly important role in an
ever-growing range of scientific and societal problems, and Federal
investments in geoscience research should increase accordingly. Global
climate change, natural disasters, energy resources, and water quality
are just a few of the issues that benefit from improved geoscience
knowledge and understanding. Federal investments in geoscience R&D
continue to pay enormous dividends, and both the Federal Government and
the Nation clearly have a stake in maintaining the health of the basic
science on which applications and policy decisions ultimately must be
based.
NSF support for geoscience research activities covers the entire
spectrum from individual investigators to major research centers and
large research programs. Many of the most creative and important
advances in geoscience research continue to be made by individual
investigators and small research teams that are the backbone of the
research and graduate education system. NSF should maintain and enhance
support for this vital component of geoscience research.
As noted in the NSF budget request, the Foundation has placed a
special emphasis on investments in the physical sciences. We applaud
the foundation's emphasis on the need to restore balance and hope that
the subcommittee views this commitment to the physical sciences
broadly, including the many subdisciplines of the geosciences within
that terminological umbrella. While the decline in funding for many
non-biomedical disciplines is real, any such refocusing should remain
broad enough to ensure the multidisciplinary nature of today's science,
mathematics, engineering, and technology research. A balance must be
found that maintains NSF's hallmark of supporting the most promising
ideas in research and education.
NSF GEOSCIENCES DIRECTORATE
The NSF Geosciences Directorate is the principal source of Federal
support for academic earth scientists and their students who are
seeking insight into the processes that ultimately sustain and
transform life on this planet. The President has requested a small
increase (about 2 percent) for this directorate as a whole, including a
2.7 percent increase to the Earth Sciences Division and a 2 percent
increase to the Ocean Sciences Division. Moreover, within the $728
million requested for the directorate, there are funds targeted at NSF-
wide priorities, which are primarily broad interdisciplinary research
and education efforts. Recognizing that these agency priorities areas
can result in cutting-edge research and technology, we are nonetheless
concerned that the President's request would jeopardize the
directorate's core programs to fund what should be complementary
initiatives. By meeting the authorized funding level within the
Research and Related Activities account, the subcommittee would allow
NSF to strengthen core research by increasing the number and duration
of grants.
NSF MAJOR RESEARCH EQUIPMENT ACCOUNT: EARTHSCOPE
AGI urges the subcommittee to support the NSF Major Research
Equipment, Facilities and Construction budget request of $50.8 million
for EarthScope. Taking advantage of new technology in sensors and data
distribution, this multi-pronged initiative--begun thanks to the
subcommittee's support in fiscal year 2003--will systematically survey
the structure of the Earth's crust beneath North America. The fiscal
year 2005 request includes continued support for deployment of three
components: a dense array of digital seismometers that will be deployed
in stages across the country; a 4-km deep borehole through the San
Andreas Fault, housing a variety of instruments that can continuously
monitor the conditions within the fault zone; and a network of state-
of-the-art Global Positioning System (GPS) stations and sensitive
strainmeters to measure the deformation of the constantly shifting
boundary between the Pacific and North American tectonic plates. AGI
supports development in conjunction with NASA of the fourth component,
a satellite-based Synthetic Aperture Radar mission that can measure
changes in the Earth's crust after earthquakes and volcanic eruptions.
EarthScope has broad support from the earth science community with
endorsements from a number of AGI's member societies, including the
Association of American State Geologists, Geological Society of
America, Seismological Society of America and Society of Exploration
Geophysicists. EarthScope has received a very favorable review from the
National Research Council, which released a report in 2001 entitled
Review of EarthScope Integrated Science.
All data from this project will be available in real time to both
scientists and students, providing a tremendous opportunity for both
research and learning about the Earth. Involving the public in earth
science research will increase appreciation of how such research can
lead to improvements in understanding the environment and a better
quality of life. As noted by the National Research Council report:
``EarthScope provides an excellent opportunity to excite and involve
the general public, as well as K-12 and college students, to work
together with the earth science community to understand the earth on
which they live.'' EarthScope can also provide a mechanism to integrate
a broad array of earth science research data in a unified system to
promote cross-disciplinary research and avoid duplication of effort.
NSF SUPPORT FOR EARTH SCIENCE EDUCATION
Earth science plays a unique and essential role in today's rapidly
changing world. Most human activities involve interactions with the
planet Earth, and citizens need a basic understanding of our planet in
order to make informed decisions about the delicate balance between
resource use and environmental protection. NSF can improve the Nation's
scientific literacy by supporting the full integration of earth science
information into mainstream science education at the K-12 and college
levels. The inclusion of earth science as a key component in the
National Science Education Standards developed by the National Academy
of Sciences presents a tremendous opportunity to achieve this goal.
AGI strongly supports the Math and Science Partnership (MSP)
program as it has existed at NSF. This is a competitive peer-reviewed
grant program and funds are only awarded to the highest quality
proposals. Shifting the MSP program entirely to the Department of
Education would mean that all MSP funds would be distributed to States
on a formula basis. This would provide no incentive for top researchers
to continue to participate in this important program and would limit
the flexibility of States to target areas of greatest need. The NSF's
MSP program focuses on modeling, testing and identification of high-
quality math-science activities whereas the Department of Education
program does not. Both the NSF and Department of Education MSP programs
are complimentary to each other and are both necessary to continue to
reach the common goal of providing world-class science and mathematics
education to elementary and secondary school students. AGI opposes the
transfer of the MSP from NSF to the Department of Education.
We encourage the Education and Human Resources directorate to
expand its interaction with the Geosciences directorate to further
integrate research and education activities in the geosciences.
Improving geoscience education to levels of recognition similar to
other scientific disciplines is important because:
--Geoscience offers students subject matter that has direct
application to their lives and the world around them.
Civilization depends on responsible use of Earth's natural
resources, including energy, minerals, and water. Moreover,
geoscience plays a key role in environmental protection.
--Geoscience exposes students to a diverse range of interrelated
scientific disciplines. It is an excellent vehicle for
integrating the theories and methods of chemistry, physics,
biology, and mathematics.
--Geoscience awareness is a key element in reducing the impact of
natural hazards on citizens--hazards that include earthquakes,
volcanic eruptions, hurricanes, tornadoes, and floods.
We urge NSF to continue playing an active role in the major
transformation that is taking place in geoscience education. For
example, at the college level, geoscience curricula are changing to
better incorporate environmental issues and changing employment
opportunities. Improved teaching methods and new educational
technology, combined with improvements in college and pre-college
geoscience curricula, may help capture and hold the curiosity and
enthusiasm of students and better prepare them for the workplace of the
21st century. At the graduate and postdoctoral level, fellowships are
increasingly critical in the geosciences because students, following
the lead of industry and consumer needs, are conducting research that
crosses traditional departmental, disciplinary, and funding boundaries.
Yet some Americans, particularly those of lower income, are still
significantly underrepresented in geoscience education. The problem is
substantially worse at the graduate level. It is unlikely that any
profession, including the geosciences, can flourish without greater
participation by all Americans, including those from historically
underrepresented groups such as ethnic minorities, women, and people
with disabilities. Continued NSF leadership is needed to increase
recruitment and retention of students from these groups through
improved access to education and research experiences. We must all work
together to address the underlying factors that prevent such
participation.
I appreciate this opportunity to provide testimony to the
subcommittee and would be pleased to answer any questions or to provide
additional information for the record.
______
Prepared Statement of the Upper Mississippi River Basin Association
The Upper Mississippi River Basin Association (UMRBA) is the
organization created in 1981 by the Governors of Illinois, Iowa,
Minnesota, Missouri, and Wisconsin to serve as a forum for coordinating
the five States' river-related programs and policies and for
collaborating with Federal agencies on regional water resource issues.
As such, the UMRBA has an interest in the budget for the water programs
of the U.S. Environmental Protection Agency (EPA).
STATE POLLUTION CONTROL GRANTS (SECTION 106)
UMRBA supports the administration's proposed 11 percent increase in
funding for Section 106 State Pollution Control Grants. However, it is
important to recognize that this $22 million increase would be
dedicated entirely to two specific efforts--i.e., grants to enhance
State monitoring and support for implementing confined animal and
stormwater permitting. Special monitoring grants totaling $17 million
would be targeted to critical information needs, including refined
biological assessment methods, probability-based designs, landscape
models and other predictive tools, remote sensing to determine where
additional monitoring is needed, and targeted monitoring to support
implementation of total maximum daily loads (TMDLs). Addressing these
critical monitoring needs is at the foundation of the States' ability
to successfully implement their Clean Water Act responsibilities.
Elsewhere in its budget, EPA is also requesting an additional $3
million for complementary information management efforts within EPA,
including improvements to the Storage and Retrieval System (STORET)
that the States and others use to archive, analyze, and exchange water
quality data.
The other $5 million in new Section 106 funding would help the
States meet the increased permitting workload associated with new
Federal requirements for concentrated animal feeding operations (CAFOs)
and Phase II stormwater regulations. EPA estimates that the universe of
regulated facilities has increased ten-fold, further stressing the
States' already under-resourced permitting programs. This additional
funding, while not sufficient to fully meet the increased demands, is
absolutely essential to the States' ability to serve the regulated
community.
Under the President's budget, funds in the baseline Section 106
program would remain static. This is the Federal money that is combined
with the States' matching dollars to support the core State water
quality programs, including water quality assessment and monitoring,
water quality planning and standard setting, total maximum daily load
development, point source permitting, and training and public
information. Adequate funds are particularly critical to supporting the
States' development and implementation of TMDLs. The tasks associated
with developing TMDLs for impaired waters include watershed
characterization, computer modeling and related analyses, allocation of
permissible loads, development of TMDL reports and plans, and public
outreach and stakeholder development. These responsibilities have the
potential to overwhelm State agency resources that are in many cases
already strained. Under the fiscal year 2004 budget of approximately
$200 million, the five States in the Upper Mississippi River Basin
received $21.5 million in Section 106 funding. Continuation of this
funding is fundamentally important to the States' ability to carry out
their responsibilities under the Clean Water Act.
CLEAN WATER STATE REVOLVING FUNDS
The UMRBA is deeply concerned about the lack of support in the
administration's fiscal year 2005 budget proposal for the Clean Water
State Revolving Fund (CWSRF), which helps address wastewater
infrastructure needs. The CWSRF is widely acknowledged as having been
pivotal in improving the Nation's water quality. In fiscal year 2004,
the five Upper Mississippi River Basin States received a total of
approximately $177 million in CWSRF funding. However, the President is
again proposing to cut the CWSRF by almost 37 percent in fiscal year
2005. This would mean $850 million for the CWSRF, rather than its
authorized and historical level of $1.35 billion. Given the flexibility
to redirect wastewater funds to the Drinking Water State Revolving Fund
(DWSRF), even less than $850 million might well be available for the
wastewater SRFs. While the flexibility to shift between these two
programs can help the States address their most pressing needs, it is
no substitute for adequate funding. EPA's own estimates show multi-
billion dollar annual funding gaps for clean water and drinking water
infrastructure over the next 20 years. While the Upper Mississippi
River States would agree with EPA's fiscal year 2005 budget
justification that ``successfully closing this gap will require more
than federal financial assistance,'' they most definitely do not agree
that the appropriate response to this daunting challenge is to reduce
the current level of Federal support still further. The high demand for
these funds underscores the need to reauthorize CWSRF funding and
increase annual Federal appropriations to at least $3 billion.
STATE NONPOINT SOURCE GRANTS (SECTION 319)
Citing increased resources for the USDA's agricultural conservation
programs, the administration has requested $209.1 million for the
Section 319 state nonpoint source grant program, a 12 percent cut from
the $237.5 million appropriated in fiscal year 2004. Nonpoint sources
are one of the major causes of water pollution in the Upper Mississippi
River Basin, which drains the Nation's agricultural heartland.
Consequently, the proposed reduction in Section 319 funding is
particularly troubling to the UMRBA. For each of the past 4 years, the
five States in the Upper Mississippi River Basin have been allocated a
total of $34 million in nonpoint source grants. While the UMRBA
welcomes and supports the expansion of USDA conservation programs, it
continues to be essential to fund the Section 319 program as well.
Without adequate funding, Section 319 cannot work in tandem with the
USDA's conservation programs, and certainly cannot address other
pressing nonpoint source needs unrelated to agriculture, such as Phase
II stormwater work. Thus, at a minimum, UMRBA urges Congress to
maintain funding for State nonpoint source grants at the fiscal year
2004 level of $237.1 million, recognizing that continued progress in
addressing nonpoint pollution will require significantly increased
resources.
WATER QUALITY INDICATORS AND ASSESSMENT METHODS
Developing sound, scientifically defensible water quality
indicators and assessment methods is a nationwide challenge, but
nowhere more so than on the country's big rivers. In order to make real
progress in meeting this challenge, EPA must exhibit strong and
consistent leadership. However, while the need for improvements in this
area is broadly acknowledged, the President's fiscal year 2005 budget
request represents a significant diminution in EPA's commitment to the
very programs that fund this research. Specifically, under the
administration's proposal, $22.7 million in ecosystems research under
the Science to Achieve Results (STAR) program would be eliminated. This
program of competitive, peer-reviewed grants funds cutting edge
research on a variety of critical questions, including the development
of biological indicators for use in assessing water quality on big
rivers. Similarly, the Central Basin Integrated Assessment, part of
EPA's Environmental Monitoring and Assessment Program (EMAP), has been
significantly curtailed and EPA does not intend to provide any
additional funding in fiscal year 2005. However, the Central Basin EMAP
still offers promise in advancing monitoring and assessment for the
large rivers of the Mississippi River Basin. It is critical to maintain
funding for STAR grants and EMAP if we are to advance the science
behind water quality indicators and assessment methods. Without such
funding, the States' ultimate ability to implement their Clean Water
Act responsibilities on the Upper Mississippi and other big rivers will
be jeopardized.
HYPOXIA ACTION PLAN AND WATERSHED GRANTS
The UMRBA is disappointed that the administration's fiscal year
2005 budget proposal does not include additional new resources to
address the recommendations in the Hypoxia Action Plan, submitted by
the Mississippi River/Gulf of Mexico Watershed Nutrient Task Force in
January 2001. The States in the Upper Mississippi River Basin have
consistently said that reductions in nutrient inputs to the Gulf of
Mexico and monitoring to evaluate the effectiveness of these efforts
will only be possible if significant new budgetary resources are
provided by the Federal Government. While the States continue to
support the goals and strategies set forth in the Action Plan, little
progress will be made to reduce the Gulf hypoxic zone and improve water
quality conditions throughout the basin without a major Federal
financial commitment.
If anything, there is even less emphasis on Gulf hypoxia than in
the administration's fiscal year 2004 budget proposal, which identified
implementation of the Hypoxia Action Plan as a focus of its Targeted
Watershed Grants. While the President is requesting an increase of $5
million for the watershed grants, $10 million of the $25 million total
would be set aside for efforts to reduce nutrients from wastewater
treatment plants on the Chesapeake Bay. Another $4 million would be
reserved for projects involving water quality trading, leaving only $11
million for other priorities nationwide. This level of resources is
simply not adequate to make progress on a problem with the complexity
and spatial scope of Gulf hypoxia.
______
Prepared Statement of the Santa Clara Valley Water District
PERCHLORATE CLEANUP IN SANTA CLARA COUNTY
Background.--The perchlorate originated from a former highway
safety flare manufacturing plant owned by Olin Corporation, which was
operated for 40 years. Operations ceased in 1996, and perchlorate
contamination was discovered in 2000. The Central Coast Regional Water
Quality Control Board (Regional Board) is providing regulatory
oversight of the contamination case, which has affected several hundred
drinking water supply wells. Groundwater is currently the only source
of drinking water in this area and over 2,000 families are being
provided with bottled water or treated groundwater. Significant
concerns remain regarding this community's exposure to perchlorate in
their drinking water and perchlorate accumulation in agricultural crops
and livestock. To address these concerns and ensure that the
groundwater basin in this area is aggressively restored and cleaned up,
the Santa Clara Valley Water District (District) is requesting Federal
assistance. We request funding to facilitate a prompt and complete
cleanup of groundwater resources in the Llagas Valley, Santa Clara
County.
Perchlorate Investigation and Cleanup Status.--To date, the
District has sampled about 1,000 water supply wells in the Llagas
Valley. In addition, Olin Corporation has sampled about 600 wells.
Results to date show more than 450 wells with detectable perchlorate
above 4 parts per billion. Bottled water is currently being delivered
to over 1,200 families and businesses in the area. Olin Corporation has
installed perchlorate removal systems on three wells for two small
water systems in the San Martin area that serve a total of about 450
customers.
The full extent of perchlorate contamination has not yet been
determined. Olin Corporation has installed a groundwater cleanup system
at their former manufacturing facility. However, they have not yet
presented a plan for cleaning up the 9\1/2\ mile long plume of
contamination, controlling additional plume movement, or long-term
solutions for well water users who currently rely on bottled water.
Olin has advised State officials that they are not prepared to commit
to cleanup of perchlorate impacts to private wells until a State or
Federal Maximum Contaminant Level (MCL) for perchlorate is established.
Adoption of an MCL at the State and Federal levels has been delayed.
Additional funding is necessary to determine the best long-term
solution for the entire groundwater basin and initiate cleanup efforts.
Funding for District-led initiatives will help break a regulatory
deadlock with Olin that is currently preventing meaningful action to
protect well owners.
Fiscal Year 2004 Funding.--One and three quarters of a million
dollars was appropriated for Perchlorate activities ($1 million under
State and Tribal Assistance Grants and $750,000 under Environmental
Programs and Management account). The 2004 funding will be used to
further the District efforts to restore clean water supplies to local
families whose wells are affected by perchlorate. Project ideas include
a point-of-use drinking water treatment system installation program,
residential wellhead treatment pilot studies, and well installation to
provide design criteria for a remediation system.
Fiscal Year 2005 Funding Recommendation.--It is requested that the
committee support an appropriation add-on of $4 million from the United
States Environmental Protection Agency in fiscal year 2005 ($2 million
under State and Tribal Assistance Grants and $2 million under
Environmental Programs and Management account).
______
Prepared Statement of the City of Avondale, Arizona
AVONDALE WASTE WATER EXPANSION PROJECT
Chairman Bond, Ranking Member Mikulski, subcommittee members, thank
you for allowing me to testify in support of $3.2 million in funding
for the expansion of the City of Avondale's waste water treatment
facility through the fiscal year 2005 VA, HUD and Independent Agencies
Appropriations bill. We are grateful that the subcommittee funded this
important project at $600,000 to begin designing this mandated
expansion, and we look forward to your continued support of this
important project.
Mr. Chairman, let me state it bluntly--we are in a desperate
situation. The City of Avondale has experienced exponential growth as
the sixth fastest growing city in the second fastest growing State in
the Nation. In 1990, the population was approximately 16,800. Today,
the City has nearly tripled in size to more than 50,000 residents. It
is estimated that the population will almost double to 80,000 by 2010.
In 1995, it was estimated that the City's population growth would not
reach 80,000 until 2020. This rapid and sudden expansion, in
conjunction with the economic downturn, places City finances at a
premium to meet its needs to provide water and wastewater capacity that
serves the expected population growth. As you may know, Avondale has a
majority of minority races (overwhelmingly Hispanic), and a population
that is moderate- to low-income. Fourteen percent of Avondale's
residents live at or below the poverty line.
The City of Avondale has exhausted all State and local funding
options prior to seeking Federal assistance. In fact, in 2000, the city
passed a one-half of 1 cents sales tax to fund street, water and sewer
projects. The City used this funding source for the first expansion of
the Wastewater Treatment Plant, which was completed in January 2003.
The previous 2 years' economic downturn, resulting in declining sales
tax revenue, has left the city with limited local funds for the next
expansion of the Treatment Plant, and the City does not have voter
authorization to issue bonds required by the State Revolving Fund.
As you know, the EPA mandates that current treatment facilities
must be expanded once they reach 80 percent capacity. Even with the
recently completed expansion of the facility, it is estimated that the
Avondale facility will reach over 80 percent by 2008. Knowing that time
and money is needed to design such a large project, the City has begun
the necessary preliminary permitting, environmental and pre-design
processes in anticipation of the master plan and construction, which
will be aided by the $600,000 of Federal STAG funds received in fiscal
year 2004, and the fiscal year 2005 request. With Federal funding,
however, the city will increase the current 6.4 MGD capacity of the
plant to 10 to 12 MGD, while also increasing the capacity of the plant
to reuse treated water for irrigation or recharge purposes, and allow
the plant to treat effluent to supplement the city's potable water
supply.
Furthermore, under the Clean Water Act's outdated formula Arizona
ranks last in per-capita and per-need funding under the State Revolving
Fund that is designed to help communities finance infrastructure
projects. This funding inequity has created problems for communities
like Avondale that have limited means but that must still meet Federal
water quality standards. The only fair way to rectify this inequity
would be for the Federal Government to provide the necessary funds to
complete the mandated expansion of the facility.
It is important to note that the City of Avondale's improved and
expanded wastewater treatment facility will do more than provide
wastewater services to the residents. It will also provide treated
effluent that will dramatically reduce its need for potable water
supplies. The expansion will also enable the City to better meet its
State-mandated 100-year water supply by recharging the remaining
effluent into the ground for future use, allowing nature to further
purify the water in order for it to be used for future potable
purposes.
Not only will this expansion allow the City to remain in compliance
with strict local, State and Federal regulatory requirements, it will
also add treatment processes that will allow the City to reuse the
treated wastewater for irrigation purposes, thereby recharging this
valuable resource. Recharging treated wastewater will allow the City to
reduce its dependence on imported water sources such as the Colorado
River, which benefits all municipalities relying on the river.
Finally, it is important to note that $600,000 included in the
fiscal year 2004 VA, HUD and Independent Agencies Appropriations bill
was a critical first step because the waste water plant is reaching
full capacity. However, it is critically important to keep this project
on an optimal funding schedule to ensure the project is completed
before the treatment plant reaches maximum capacity. With that in mind,
we can utilize $3.2 million in fiscal year 2005 toward completion of
this $20 million project of which the City will provide 53 percent of
the funding.
This project serves a broad public purpose in three ways: (1) it
will allow the City to continue to provide the necessary sewer service
for our residents; (2) will benefit the rest of Arizona by helping to
cut down on the amount of scarce water the City uses, because the plant
also treats the water to allow it to be re-used for irrigation
purposes; and (3) will allow the city to treat the effluent to bring it
up to Class A standards and to recharge it into the ground to be
withdrawn later as potable water.
Again, I ask that you support the City's request for $3.2 million
from the STAG account in the fiscal year 2005 VA, HUD and Independent
Agencies Appropriations bill for the expansion of our waste water
treatment plant. Thank you in advance for your consideration of this
request.
______
Prepared Statement of the K-12 Science, Technology, Engineering &
Mathematics Education Coalition
We encourage you to continue the Federal commitment to math and
science education by maintaining the peer-reviewed Math and Science
Partnerships (MSPs) at the National Science Foundation (NSF) and
supporting robust funding for both the U.S. Department of Education
(ED) and the NSF Math and Science Partnership programs.
We urge you to oppose the administration's budget proposal that
would phase-out the NSF MSP program and establish a new Federal grant
administered by the Secretary of Education that would, in effect, limit
individual States' discretion to target much-needed funds for local
science and mathematics education reforms.
We believe that the MSPs at both the Department of Education and at
NSF are necessary and complementary. Without one, the other is
significantly weakened.
The competitive, peer-reviewed, NSF MSPs seek to develop
scientifically sound, model, reform initiatives that will improve
teacher quality, develop challenging curricula, and increase student
achievement in mathematics and science. The funds appropriated under
NCLB for the ED MSPs go directly to the States as formula grants,
providing funds to all States to replicate and implement these
initiatives throughout the country.
While we support the administration's proposal to increase funding
for the ED MSPs, we oppose the creation of a new $120 million ED grant
program that runs counter to congressional intent by focusing only on
math and reducing State flexibility to target funds to areas of
greatest need. We encourage you to oppose new restrictions on the
additional funding slotted for the State-based ED MSPs.
In summary, we strongly urge Congress to: (1) reject the
administration's proposed phase-out of the NSF MSP program; (2) oppose
additional restrictions to the ED MSP program; and (3) provide robust
funding for both MSP programs.
______
Prepared Statement of the Village of Wellington, Florida
Mr. Chairman and members of the subcommittee, on behalf of the
Village of Wellington, we are pleased to submit this statement for the
record in support of our request for funding in the amount of
$3,000,000 for The Village's Water Cleanup and Phosphorus Removal
Project. We respectfully request that this funding be provided through
an appropriation to the Environmental Protection Agency and that the
funding be included in the fiscal year 2005 Appropriation Bill for VA/
HUD and Independent Agencies.
PROJECT EXECUTIVE SUMMARY
The 1994 Everglades Forever Act (EFA) established water quality
goals for the restoration and preservation of the Everglades Protection
Area. It also identified Basin B within the Village of Wellington as an
area that will need to meet the new phosphorus standard by December 31,
2006 for its stormwater discharges into the Arthur Marshall Loxahatchee
National Wildlife Refuge (Conservation Area No. 1).
The Acme Basin B Discharge project is one of 55 that comprise the
Comprehensive Everglades Restoration Plan (CERP). The Basin B drainage
area is part of the Acme Improvement District, which was created by the
State of Florida in 1953 to provide drainage for agricultural land in
central Palm Beach County. During the 50 years since its inception,
land uses within the improvement district have changed dramatically.
The Acme Improvement District now serves the Village of Wellington and
over 50,000 residents. Basin B consists of 8,680 acres of low-density
development located in the southern half of the Improvement District.
The western boundary of Basin B abuts the Loxahatchee Refuge.
The benefits created by the CERP Acme Basin B Discharge project are
largely related to restoration of the natural environment. The health
of the Loxahatchee Refuge and Everglades National Park will be enhanced
with improved quality and quantity of water generated from within the
basin. Specifically, the project will provide the equivalent of 28.5
million gallons of water per day to the Everglades, which, without the
project, would be needlessly sent to the ocean via the Lake Worth
Lagoon.
The Village has been working diligently to arrive at a solution to
meet the EFA requirements in an economic and technically feasible
manner. The actual phosphorus standard will be adopted by the Florida
Department of Environmental Protection (FDEP) through the Environmental
Regulatory Commission (ERC). Therefore, the Village has been evaluating
numerous alternatives to be used, to arrive at a Basin B Water Quality
Clean Up Solution.
Some of these alternatives that have been, or are still being,
evaluated, are:
--A water quality improvement Pilot Program with CH2M Hill
Constructors, Inc.
--Development of a Best Management Practices (BMP) Ordinance with
phosphorous fertilizer limitations and livestock waste handling
procedures among others.
--Preparation of a Request for Proposals and obtaining responses for
a ``Multi-Purpose Stormwater Management Program'' as a design/
build/operate (DBO) contract.
--Development of Basin B Water Quality Clean Up alternatives for
further evaluation by the South Florida Water Management
District (SFWMD) through its study consultants, Burns &
McDonnell, and Brown & Caldwell.
--Work with SFWMD and the U.S. Army Corps of Engineers through a
Cooperation Agreement with SFWMD to develop a Basin B Water
Quality Clean Up Plan as an already federally authorized Other
Project Element (OPE) of the Comprehensive Everglades
Restoration Plan (CERP).
--Implementation of a detailed water quality monitoring program to
identify ``hot spots'' within Basin B for potential individual
site specific clean up.
As part of its Basin B Water Quality Clean Up Initiative, the
Village of Wellington assembled a ``Surface Water Action Team'' (SWAT)
comprised of key personnel and expert consultants. The SWAT Team, while
continuing to work on many of the above initiatives, is presently
working on a Phase II BMP Ordinance, along with an updated Cooperative
Agreement with SFWMD.
The ongoing water quality monitoring program has indicated a fairly
significant decrease in average phosphorus concentrations since 1999.
In 1999, the average Basin B phosphorous concentration discharged to
the Loxahatchee Refuge was 189 parts per billion (ppb). In 2002, the
average concentration has dropped to 88 ppb, which is a 53.4 percent
decrease in phosphorus levels. Although inconclusive, it is likely that
the implementation of the BMP Ordinance played a part in this decrease
in phosphorus concentrations.
To date, the Village of Wellington has made a considerable
financial investment of approximately $3.25 million, not including
internal staff hours, in an effort to meet the standards set by the
Everglades Forever Act requirements.
CONCLUSION
The Village of Wellington would appreciate the subcommittee's
favorable consideration of our request for $3 million for fiscal year
2005 in the EPA portion of the subcommittee's bill to support the
Village's Water Cleanup and Phosphorus Removal Project.
Thank you for your consideration of our request.
______
Prepared Statement of the People for the Ethical Treatment of Animals
(PETA)
Chairman Bond, Ranking Member Mikulski, and Members of the
subcommittee, People for the Ethical Treatment of Animals (PETA) is the
world's largest animal rights organization, with 800,000 members and
supporters. We greatly appreciate this opportunity to submit testimony
regarding the fiscal year 2005 appropriations for the Environmental
Protection Agency (EPA). Our testimony will focus non-animal chemical
toxicity tests that are available to replace animal tests currently
required by the EPA.
As you know, the EPA requires substances such as pesticides,
industrial chemicals, and others to be tested for, among many other
hazards, their rates of skin corrosion, skin absorption, and skin
irritation. Traditionally, these particular tests have involved
smearing chemicals on animals' shaved backs, often causing effects
ranging from swelling and painful lesions to wounds where the skin is
totally burned through.
Fortunately, there are non-animal test methods that are just as
effective, if not more so, for these three endpoints. ``Human skin
equivalent'' tests such as EpiDermTM and
EpiSkinTM have been scientifically validated and accepted in
Canada, the European Union, and by the Organization for Economic
Cooperation and Development (OECD), of which the United States is a key
member, as total replacements for animal-based skin corrosion studies.
Another non-animal method, CorrositexTM, has been approved
by the U.S. Interagency Coordinating Committee on the Validation of
Alternative Methods. Various tissue-based methods have been accepted in
Europe as total replacements for skin absorption studies in living
animals. In fact, in 1999 the EPA itself published a proposed rule for
skin absorption testing using a non-animal method that, as of this
writing, has still not been finalized. Government regulators in Canada
accept the use of a skin-patch test in human volunteers as a
replacement for animal-based skin irritation studies (for non-corrosive
substances free of other harmful properties).
However, the EPA continues to require the use of animals for all
three of these endpoints, despite the availability of the non-animal
tests.\1\
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\1\ The EPA may allow the use of EpiDermTM, however it
will apparently require confirmatory testing on animals of any negative
non-animal test results. This sets an unjustified precedent of
requiring confirmatory testing of validated non-animal tests with non-
validated animal tests.
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In fiscal year 2002, the subcommittee allocated the first-ever
appropriation for the EPA to research, develop, and validate non-animal
methods. The appropriation was in the amount of $4,000,000 and was to
be used for ``non-animal, alternative chemical screening and
prioritization methods, such as rapid, non-animal screens and
Quantitative Structure Activity Relationships.'' However, to date, the
EPA has refused to provide a detailed accounting of how this
appropriation was spent and exactly what non-animal testing methods
received these funds.
We respectfully request that the subcommittee include the following
report language:
``The Administrator of the EPA is required to report to Congress no
later than December 1, 2004, regarding the use of
CorrositexTM and `human skin equivalent' tests such as
EpiDermTM and EpiSkinTM for skin corrosion
studies, in vitro methods using skin from a variety of sources (e.g.
human cadavers) for skin absorption studies, and human volunteer
clinical skin-patch tests (for chemicals first determined to be non-
corrosive and free of other harmful properties) for skin irritation
studies. The Administrator should describe the reasons for which the
agency has delayed accepting the aforementioned methods for regulatory
use as total replacements for their animal-based counterparts, exactly
what steps the agency is taking to overcome those delays, and a target
date by which the agency intends to accept these methods for regulatory
use.''
PETA also supports the testimony submitted by the Doris Day Animal
League requesting that targeted existing resources in the EPA's Science
and Technology account for the Office of Research and Development be
used to fund specific validation studies of non-animal test methods to
speed their acceptance by the agency.
Animal Tests Cause Immense Suffering
Traditionally, the degree to which corrosive materials are
hazardous has been measured by the very crude and cruel method of
shaving rabbits' backs and applying the test substance to the animals'
abraded skin for a period of hours. As one can imagine, when highly
corrosive substances are applied to the backs of these animals, the
pain is excruciating. In skin absorption tests, the rate at which a
chemical is able to penetrate the skin is measured by shaving the backs
of rats and smearing the substance on them for an exposure period of up
to 24 hours. They are eventually killed, and their skin, blood, and
excrement are analyzed. A similar method is used to test for skin
irritation, except the unfortunate subjects are again rabbits, who are
locked in full-body restraints. A test chemical is applied to their
shaved backs, and the wound site is then covered with a gauze patch for
normally 4 hours. A chemical is considered to be an irritant if it
causes reversible skin lesions or other clinical signs, which heal
partially or totally by the end of a 14-day period. Animals used in the
above tests are not given any painkillers.
These Tests Have Never Been Proven to be Relevant to Humans
None of the animal tests currently used for skin corrosion,
absorption, or irritation has ever been scientifically validated for
its reliability or relevance to human health effects. Animal studies
yield highly variable data and are often poor predictors of human
reactions. For example, one study, which compared the results of rabbit
skin irritation tests with real-world human exposure information for 65
chemicals, found that the animal test was wrong nearly half (45
percent) of the time in its prediction of a chemical's skin damaging
potential (Food & Chemical Toxicology, Vol. 40, pp. 573-92, 2002).
Validated Methods Exist Which do not Harm Animals
Fortunately, test methods have been found to accurately predict
skin corrosion, absorption, and irritation.
EpiDermTM and EpiSkinTM are test systems
comprised of human-derived skin cells, which have been cultured to form
a multi-layered model of human skin. The CorrositexTM
testing system consists of a glass vial filled with a chemical
detection fluid capped by a membrane, which is designed to mimic the
effect of corrosives on living skin. As soon as the corrosive sample
destroys this membrane, the fluid below changes color or texture.
For skin absorption tests, the absorption rate of a chemical
through the skin can be measured using skin from a variety of sources
(e.g. human cadavers). The reliability and relevance of these in vitro
methods have been thoroughly established through a number of
international expert reviews, and have been codified and accepted as an
official test guideline of the OECD.
Instead of animal-based skin irritation studies, government
regulators in Canada accept the use of a skin-patch test using human
volunteers. (The chemical is first determined to be non-corrosive and
free of other harmful properties before being considered for human
studies.)
Non-animal Test Methods Can Save Time, Money, and Yield More Useful
Results
Whereas animal testing can cost more than $1,800,
EpiDermTM costs on average less than $800. Unlike animal
testing that can take 2 to 4 weeks, CorrositexTM testing can
provide a classification determination in as little as 3 minutes and no
longer than 4 hours, and costs less than $200 per chemical tested.
Tissue culture methods to test for skin absorption allow
researchers to study a broader range of doses, including those at the
actual level of exposure that occurs in the occupational or ambient
environment, which is not possible with the animal-based method.
Many non-animal methods can yield results with greater sensitivity
and at a lower cost than animal-based methods. Protocols are more
easily standardized, and the variations among strains and species are
no longer a factor.
The EPA Continues to Require the Use of Animals
Despite the ethical, financial, efficiency, and scientific
advantages of the above non-animal methods, the EPA continues to
require and accept the unnecessary use of animals in tests for skin
corrosion, absorption, and irritation.
Summary
Non-animal methods are available now to replace animal-based
methods to test substances for skin corrosion, absorption, and
irritation. There simply is no excuse for continuing to cause animals
to suffer when non-animal tests are available.
We therefore hereby request, on behalf of all Americans who care
about the suffering of animals in toxicity tests, that you please
include language in the report accompanying the fiscal year 2005 VA,
HUD and Independent Agencies Appropriations bill stating that:
``The Administrator of EPA is required to report to Congress no
later than December 1, 2004, regarding the use of
CorrositexTM and `human skin equivalent' tests such as
EpiDermTM and EpiSkinTM for skin corrosion
studies, in vitro methods using skin from a variety of sources (e.g.
human cadavers) for skin absorption studies, and human volunteer
clinical skin-patch tests (for chemicals first determined to be non-
corrosive and free of other harmful properties) for skin irritation
studies. The Administrator should describe the reasons for which the
agency has delayed accepting the aforementioned methods for regulatory
use as total replacements for their animal-based counterparts, exactly
what steps the agency is taking to overcome those delays, and a target
date by which the agency intends to accept these methods for regulatory
use.''
PETA also supports the testimony submitted by the Doris Day Animal
League requesting that targeted existing resources in the EPA's Science
and Technology account for the Office of Research and Development be
used to fund specific validation studies of non-animal test methods to
speed their acceptance by the agency.
Thank you for your consideration of our request.
______
Prepared Statement of the State and Territorial Air Pollution Program
Administrators and the Association of Local Air Pollution Control
Officials
The State and Territorial Air Pollution Program Administrators
(STAPPA) and the Association of Local Air Pollution Control Officials
(ALAPCO) appreciate this opportunity to provide testimony regarding the
fiscal year 2005 proposed budget for the U.S. Environmental Protection
Agency (EPA), particularly regarding grants to State and local air
pollution control agencies under Sections 103 and 105 of the Clean Air
Act.
STAPPA and ALAPCO are the national associations of air quality
officials in 53 States and territories and more than 165 metropolitan
areas across the country. The Clean Air Act gives State and local air
quality officials the primary responsibility for implementing our
country's clean air program. These agencies must work to limit or
prevent emissions of a variety of pollutants from many different
sources. These include particulate matter, ground-level ozone, toxic
air pollution, and acid rain, among others. In order to protect public
health, State and local air pollution control agencies are responsible
for implementing myriad activities and programs. These include, among
others, developing State Implementation Plans, monitoring ambient air
quality, developing inventories of emissions, formulating air pollution
control strategies, providing compliance assistance to the regulated
community, issuing permits to sources, inspecting facilities, carrying
out enforcement actions, and providing public education and outreach.
In addition to maintaining the fundamental and ongoing elements of
their programs, State and local air agencies must, at the same time,
address new and emerging problems.
RECOMMENDATION
Section 105 of the Clean Air Act authorizes the Federal Government
to provide grants up to 60 percent of the cost of State and local air
quality programs, while State and local agencies must provide a 40
percent match. The reality is that the Federal share represents only
approximately 25 percent of the total State/local air budget, while
State and local governments provide 75 percent (not including income
from the Title V permit fee program).
It is estimated that the total amount spent on State and local
efforts to implement the Clean Air Act is approximately $900 million. A
study that the U.S. Environmental Protection Agency (EPA) and STAPPA
and ALAPCO conducted several years ago concluded that State and local
programs faced a deficit of approximately $163 million, meaning that
the total needed is over $1 billion. If EPA were to support 60 percent
of that total, as the Clean Air Act envisioned, Federal grants would
amount to $600 million annually.
Unfortunately, the administration has recommended a total of $228.6
million in fiscal year 2005 for grants to State and local air quality
agencies under Sections 103 and 105 of the Clean Air Act, which is far
short of the $600 million that is needed. To make matters worse, over
the past decade, Federal grants for State and local air agencies to
operate their programs have decreased by 25 percent in terms of
purchasing power (when adjusted for inflation).
In light of the need for a substantial increase, the budget request
is insufficient to support State and local air agency efforts. However,
we recognize that Congress must address many competing needs and cannot
fund many activities and programs as fully as necessary. Therefore,
although we believe that air pollution poses a significant threat to
public health and should be among our highest priorities, we are
recommending that Federal grants to State and local air quality
agencies be increased by only $100 million above the President's
request in fiscal year 2005, for a total of $328.6 million. While this
will not fill the gap entirely, it will provide a much needed increase
to State and local air quality efforts. Unless State and local air
quality programs receive a substantially greater boost in funding, they
will continue to face a serious financial shortfall, which will
adversely affect their ability to protect and improve air quality. This
shortfall will only become worse as greater demands are placed on their
programs.
AIR POLLUTION POSES SEVERE HEALTH AND ENVIRONMENTAL RISKS
In spite of the best efforts of air quality regulators, air
pollution poses a serious threat to public health and the environment.
In fact, we know of no other environmental problem that presents a
greater risk. It is a pervasive and universal danger--all of us
breathe. We have no choice in the matter. While some of us can choose
to eat certain foods or select what we drink, we have no option but to
breathe the air that is in our midst.
Unfortunately, the fact is that many, if not most, people in the
United States are exposed to unhealthful levels of air pollution. In
this country, over 170 million tons of pollution are emitted into the
air each year. An astounding 133 million people live in areas of the
country that violate at least one of the six health-based National
Ambient Air Quality Standards (NAAQS). Many millions are exposed to
toxic air pollutants that cause cancer and other health problems. When
we consider our children, who are among our most sensitive and precious
populations, the bad news mounts. In 1996, all children lived in
counties in which the combined estimated concentrations of hazardous
air pollutants exceeded a 1-in-100,000 cancer risk benchmark;
approximately 95 percent lived in counties in which at least one
hazardous air pollutant exceeded the benchmark for health effects other
than cancer. Between 1980 and 1995, the percentage of children with
asthma doubled, to 7.5 percent, and by 2001, 8.7 percent of all
children had asthma. These figures are nothing less than shocking.
The following is greater detail about just a few types of air
pollution that we face.
The first is fine particulate matter--or PM2.5. The U.S.
Environmental Protection Agency has established a new standard for
PM2.5. While the agency has not yet officially designated
which areas of the country violate the standard, we know one thing:
PM2.5 poses the greatest health risk of any air pollutant,
resulting in as many as 30,000 premature deaths each year.
Additionally, fine particles are responsible for a variety of adverse
health impacts, including aggravation of existing respiratory and
cardiovascular disease, damage to lung tissue, impaired breathing and
respiratory symptoms, irregular heart beat, heart attacks and lung
cancer. Based on preliminary data, it appears that PM2.5
concentrations in over 120 counties throughout the United States exceed
the health-based standard.
We have faced an uphill battle against ground-level ozone, or
``smog.'' In spite of our efforts, levels of ozone in some parts of the
country actually increased during the past 10 years, and in 33 national
parks, ozone has risen by more than 4 percent. A significant factor in
this trend is the increase we have experienced in nitrogen oxide
(NOX) emissions, which are not only a precursor to ozone,
but also a contributor to such public health and welfare threats as
acid rain, eutrophication of water bodies, regional haze and secondary
PM2.5. Over the past 20 years, NOX emissions have
increased by almost 9 percent, largely due to emissions from nonroad
engines and diesel vehicles. Current data show that almost 300 counties
measure exceedances of the 8-hour ozone standard.
Another concern is the serious public health threat posed
nationwide by emissions of hazardous air pollutants (HAPs). According
to EPA's most recent National-Scale Air Toxics Assessment, more than
200 million people in the United States live in areas where the
lifetime cancer risk from exposure to HAPs exceeds 1 in 100,000 and
approximately 3 million face a lifetime cancer risk of 1 in 10,000. To
put this in context, consider that EPA has established 1 in 1,000,000
as the generally acceptable level of risk. These figures demonstrate
that HAP emissions are a nationwide threat. It will require a
significant level of effort to reduce the risk they pose to all of us.
One HAP that is especially worrisome is mercury. Air emissions are
responsible for much of the mercury that is found in fish. This is a
significant problem, especially for those who rely on fish as an
important part of their diets. In this country, in 1999-2000,
approximately 8 percent of women of child-bearing age had at least 5.8
parts per billion of mercury in their blood (children born to women
with blood concentrations above that number are at some increased risk
of adverse health effects). Due to public health concerns about the
consumption of mercury in contaminated fish, 45 States, territories and
tribes have issued advisories to the public about elevated
concentrations of mercury in the fish that is caught in their water
bodies.
The magnitude of the air quality problem and the associated health
effects make it clear that significantly increased funding for the
control of air pollution should be a top priority.
SOURCES OF FUNDING FOR STATE AND LOCAL AIR POLLUTION CONTROL PROGRAMS
State and local air pollution control programs are funded through a
variety of sources. These include State and local appropriations; the
Federal permit fee program under Title V of the Clean Air Act; State
and local permit and emissions fee programs and Federal grants under
Sections 103 and 105 of the Clean Air Act. Section 103 traditionally
funds specific monitoring efforts (e.g., particulate matter or air
toxics monitoring). Section 105 supports the fundamental elements of
State and local air quality efforts, including, but not limited to, the
personnel needed to run the programs.
As discussed above, State and local contributions provide a
disproportionate share of air budgets. Unfortunately, not only have
Section 105 grants failed to equal the percentage of the total air
budget that the Clean Air Act envisioned, they have actually declined
by 25 percent in terms of purchasing power during the past decade, from
$224 million to $168 million in 2003 dollars. This decrease has come at
the same time that State and local responsibilities have steadily
increased. We have attached to this testimony a chart that illustrates
Section 105 grants from fiscal year 1993-fiscal year 2003, adjusted for
inflation (based upon U.S. Department of Labor inflation statistics).
Since Federal grants to State and local air agencies have not risen
commensurately with their needs, and in fact have declined in terms of
purchasing power, State and local air agencies have attempted to
accommodate deficiencies in their budgets. They have tried to maximize
efficiencies (i.e., working better and smarter), trim any ``fat'' from
their budgets, disinvest programs that are not essential and raise
revenues on the State and local levels. Unfortunately, even those
measures are not enough to accommodate the shortfall.
Many believe, mistakenly, that the permit fee program under Title V
of the Clean Air Act Amendments of 1990 was the answer to the State and
local air agencies' financial problems. Unfortunately, those revenues
do not solve the funding problems for several reasons. First, the fees
only support the operating permit program and must not be used for
other activities. Second, fees only apply to major sources and do not
cover the significant costs related to non-major sources, which include
minor source permits, monitoring, enforcement, compliance assistance,
etc. Third, the current fees already are substantial and there would be
considerable resistance to any increases. Fourth, fee revenue is
decreasing due to reductions in emissions, on which they are based.
Finally, increases in costs for air quality programs (except for permit
programs themselves) are not addressed by permit fee programs.
The Title V fee program, while essential to State and local
efforts, is not the solution to the funding shortfall. Federal grants
must be expanded to meet the significant resource requirements.
EPA/STATE/LOCAL STUDY RECOGNIZED NEED FOR FEDERAL AIR GRANT INCREASES
Several years ago, EPA, in cooperation with STAPPA and ALAPCO,
conducted an intensive effort to identify the activities that are
necessary for State and local agencies to carry out and estimate the
amount of Section 105 grants needed. The study concluded that a total
increase of approximately $163 million over Federal grant levels would
be needed for State and local air agencies to operate a good (not
perfect) program in fiscal year 1999. In spite of the significant
funding shortfall identified by the EPA needs assessment study,
sufficient budget increases in operating programs have not been
forthcoming. Furthermore, since that time, State and local
responsibilities have continued to increase, only widening the funding
gap.
HOW WOULD AN INCREASE BE USED?
State and local air agencies have identified several high-priority
activities on which they would spend increased grant funds. For
example, they will be required to develop State Implementation Plans--
plans to implement the 8-hour ozone standard, which is an effort that
will require significant resources. This will be especially onerous for
smaller agencies, including local agencies, that have very limited
resources. In addition, State and local air quality agencies are facing
many other responsibilities for which additional funds are needed.
These include the following, among others: improve emission inventories
of toxic air pollution; increase the frequency of inspections of major
and minor sources; meet the various Federal and public expectations
under Section 112 (air toxics); expand criteria pollutant monitoring;
improve risk assessment capacity; reduce concentrations of fine
particulates; increase public outreach efforts; improve small business
compliance assistance; purchase replacements for equipment that has
outgrown its expected usage; increase the number of air toxics
monitoring locations to better characterize baseline concentrations and
localized impacts; and improve modeling tools to determine emission
reductions needed.
CONCLUSION
Federal grants to State and local air pollution control agencies
are severely inadequate; accordingly, there are many critical
activities that are not being carried out, or implemented as well as
could be. Many of these activities are the foundation of the Nation's
air quality program and are, therefore, essential. Without additional
Federal grants, and the flexibility to target them to the activities
that are most appropriate in individual States and communities, State
and local air agencies will find it increasingly difficult to obtain
and maintain healthful air quality. Accordingly, we recommend an
increase of $100 million above the President's fiscal year 2005 request
for grants to State and local air quality agencies.
Thank you for this opportunity to provide our testimony. We will
also supply you with a report entitled, ``The Critical Funding
Shortfall of State and Local Air Quality Agencies'', which we have
prepared to provide additional detail about State and local air
agencies' funding difficulties. Please contact us if you have questions
or require any additional information.
______
Prepared Statement of the National Association of State Universities
and Land-Grant Colleges
On behalf of the National Association of State Universities and
Land-Grant Colleges (NASULGC), thank you for your support of academic
research. We appreciate the opportunity to provide recommendations for
science and technology funding at NSF, EPA and NASA for fiscal year
2005.
NATIONAL SCIENCE FOUNDATION
As a member of the Coalition for National Science Funding, NASULGC
supports a 15 percent increase for NSF over the fiscal year 2004
enacted level, for a total of $6.415 billion. This increase is
necessary to put NSF on the ``doubling'' track that Congress and the
President endorsed less than 18 months ago by passing the National
Science Foundation Authorization Act of 2002. We also oppose the
proposed transfer of the Math-Science Partnership to the Department of
Education, because it is well-run by NSF and should remain a
competitive grant program rather than shifting to block grants. The
current system, in which NSF's program focuses on the modeling, testing
and identification of high-quality math and science activities whereas
the Department of Education focuses on their dissemination, is the most
desirable and effective approach to address our nation's math-science
education needs.
Within the Research and Related Activities (R&RA) account, we would
like to call your attention to three Directorates of particular
interest to the environmental science community: Geosciences, Polar
Programs and Biological Sciences. We ask that you provide these
accounts with increases equal to the overall R&RA increase. The
President's budget proposal restricts them all to miniscule increases
of approximately 1 or 2 percent. We support the President's requested
$58.3 million increase for Major Research Equipment, Construction and
Facilities, and urge you to fully fund EarthScope, the National
Ecological Observatory Network, the Scientific Ocean Drilling Vessel,
and the Rare Symmetry Violating Processes projects.
ENVIRONMENTAL PROTECTION AGENCY
NASULGC recommends $790 million in fiscal year 2005 for the EPA
Science and Technology account and $10 million for the Office of
Environmental Education (OEE). This amount would restore the proposed
12 percent cut in the President's budget and provide a small increase
to maintain ongoing programs. Without sound science, EPA will be unable
to correctly identify and develop sound management and mitigation
strategies for critical environmental problems. Cuts to EPA S&T account
would result in drastic reductions in essential extramural research
funded by the Office of Research and Development (ORD) and education
and outreach carried out by OEE.
One of the most effective programs for improving the agency's
science capabilities is the Science to Achieve Results (STAR) program.
Despite the National Research Council's recent strong endorsement of
STAR in its report, ``The Measure of STAR,'' the President's budget
proposes a cut of approximately 35 percent. We urge you to restore STAR
funding to $100 million for competitive grants and $10 million for
graduate fellowships. The small investment EPA ORD makes in STAR is
functionally one of its most important, because STAR is not a stand-
alone grants program. It is coordinated with EPA program and regional
offices, and targeted at high-priority needs that support the agency's
mission. The program is leveraged by the participation of other Federal
agencies and the private sector, and involves thousands of research
scholars in universities. These investigator-initiated research grants
are significantly expanding the number of scientists conducting EPA-
related research and enhancing the overall quality of EPA S&T. STAR
graduate fellowships are also an excellent investment in the next
generation of scientists and engineers, and provide opportunities for
some of the brightest minds to develop the skills to enhance and
replenish this Nation's environmental science expertise. STAR funding
is a very important tool in the effort to address the future workforce
needs of EPA.
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
NASULGC opposes the delays in planned scientific missions and the
long-term cuts to the Earth Science Enterprise (ESE) proposed in the
President's budget. While we appreciate the President establishing
space exploration as a priority, the shifts in funding proposed would
impact a number of missions that have been carefully planned for years,
in both Space and Earth Science. This change in priorities was
developed over a comparatively short time with little community input.
Therefore, we recommend that NASA engage the National Academy of
Sciences to set the science goals of the exploration initiative and
examine the impact of deferred programs, including within ESE.
The long-term decline in funding for ESE forecast in the fiscal
year 2005 proposal is very distressing. ESE plays a key role in our
understanding of the earth and its atmosphere, and sustainable funding
for these programs should not be abandoned. The proposed cuts to Earth
Science Application programs would adversely affect funding for
partnerships that are turning important findings into practical
applications--such as fire hazard prediction and water availability,
farming and forestry, and urban and regional planning. Partnerships
between NASA and the academic community provide the agency with
flexibility to deal with an aging workforce and the wave of anticipated
retirements. We urge you to provide, at a minimum, the fiscal year 2004
appropriated level of $91 million for Earth Science Applications. We
support the requested levels of $141 million for the NPOESS Preparatory
Project and $99 million for the Climate Change Research Initiative.
ABOUT NASULGC
NASULGC is the Nation's oldest higher education association.
Currently the association has over 200 member institutions--including
the historically black land-grant institutions--located in all 50
States. The Association's overriding mission is to support high quality
public education through efforts that enhance the capacity of member
institutions to perform their traditional teaching, research, and
public service roles.
Thank you for the opportunity to share our views with the
committee.
______
Prepared Statement of the National Coalition for Homeless Veterans
The National Coalition for Homeless Veterans appreciates the
opportunity to submit recommendations on fiscal year 2005
appropriations for and program management issues related to the U.S.
Department of Veterans Affairs (VA), U.S. Department of Housing and
Urban Development (HUD), and U.S. Interagency Council on Homelessness
(ICH).
The National Coalition for Homeless Veterans (NCHV), established in
1990, is a nonprofit organization with the mission of ending
homelessness among veterans by shaping public policy, promoting
collaboration, and building the capacity of service providers. NCHV's
nearly 250 member organizations in 42 States and the District of
Columbia provide housing and supportive services to homeless veterans
and their families, such as street outreach, drop-in centers, emergency
shelter, transitional housing, permanent housing, recuperative care,
hospice care, food and clothing, primary health care, addiction and
mental health services, employment supports, educational assistance,
legal aid and benefit advocacy.
The VA estimates that more than 299,000 veterans are homeless on
any given night; more than 500,000 experience homelessness over the
course of a year. Conservatively, 1 of every 3 homeless adult males
sleeping in a doorway, alley, box, car, barn or other location not fit
for human habitation in our urban, suburban, and rural communities has
served our Nation in the Armed Forces. Homeless veterans are mostly
males (2 percent are females). Fifty-four percent are people of color.
The vast majority are single, although service providers are reporting
an increased number of veterans with children seeking their assistance.
Forty-five percent have a mental illness. Fifty percent have an
addiction.
America's homeless veterans have served in World War II, Korea, the
Cold War, Vietnam, Grenada, Panama, Lebanon, anti-drug cultivation
efforts in South America, Afghanistan, and Iraq. Forty-seven percent of
homeless veterans served during the Vietnam Era. More than 67 percent
served our Nation for at least 3 years and 33 percent were stationed in
a war zone.
Male veterans are twice as likely to become homeless as their non-
veteran counterparts, and female veterans are about four times as
likely to become homeless as their non-veteran counterparts. Like their
non-veteran counterparts, veterans are at high risk of homelessness due
to extremely low or no income, dismal living conditions in cheap hotels
or in overcrowded or substandard housing, and lack of access to health
care. In addition to these shared factors, a large number of at-risk
veterans live with post traumatic stress disorders and addictions
acquired during or exacerbated by their military service. In addition,
their family and social networks are fractured due to lengthy periods
away from their communities of origin. These problems are directly
traceable to their experience in military service or to their return to
civilian society without appropriate transitional supports.
Contrary to the perceptions that our Nation's veterans are well-
supported, in fact many go without the services they require and are
eligible to receive. One-and-a-half million veterans have incomes that
fall below the Federal poverty level. Neither the VA, State or county
departments of veteran affairs, nor community-based and faith-based
service providers are adequately resourced to respond to these
veterans' health, housing, and supportive services needs. For example,
the VA reports that its homeless treatment and community-based
assistance network serves 100,000 veterans annually. With an estimated
500,000 veterans experiencing homelessness at some time during a year
and the VA reaching only 20 percent of those in need, 400,000 veterans
remain without services from the department responsible for supporting
them. Likewise, other Federal, State, and local public agencies--
notably housing and health departments--are not adequately responding
to the housing, health care and supportive services needs of veterans.
Indeed, it appears that veterans fail to register as a target group for
these agencies.
We urge Congress to make a public commitment and take immediate
action to ensure access to housing, income, and health security for
those who have nobly served our Nation.
VETERANS AFFAIRS APPROPRIATIONS AND PROGRAM MANAGEMENT RECOMMENDATIONS
Appropriations for VA Homeless Programs.--The landmark Homeless
Veterans Comprehensive Assistance Act of 2001 (Public Law 107-95)
establishes new program authorities and reauthorizes long-standing
homeless programs within the VA. While the authorization law set
explicit funding levels for many of the VA homeless programs and
authorities, actual annual spending levels are set by the VA Secretary
via allocation of funds from the VA health care account, which are
appropriated by Congress.
We are extremely disappointed that the VA, in the three budget
cycles since passage of Public Law 107-95, has neither implemented each
of its provisions nor allocated funds from the VA health care account
to the Department's homeless programs at the levels authorized in the
statute.
Accordingly, we request the subcommittee to ensure that sufficient
funds are included in the fiscal year 2005 VA budget for the
Department's homeless programs. Further we urge the subcommittee to
include specific instructions in bill language or report language (as
appropriate) directing the Secretary to allocate specific funding
amounts from the VA appropriation to the following VA homeless
programs:
--$75 million for the Homeless Provider Grant and Per Diem program,
the fiscal year 2005 level authorized by Public Law 107-95. The
GPD program provides competitive grants to community-based,
faith-based, and public organizations to offer transitional
housing or service centers for homeless veterans.
--$45 million for the Health Care for Homeless Veterans (HCHV)
program. This level of funding would enable VA to continue to
support 134 existing HCHV teams across the country that provide
targeted outreach, medical treatment, and referral services to
homeless veterans.
--$51 million for the Domiciliary Care for Homeless Veterans (DCHV)
program. This level of funding would enable VA to continue to
support 35 existing DCHVs across the country that provide
residential rehabilitation supports to homeless veterans.
--$10 million for the purpose of expanding domiciliary care capacity
(either directly or via contract with nonprofit homeless
veteran service providers), the total level authorized for DCHV
expansion in fiscal year 2003 and fiscal year 2004. VA did not
exercise this authority in either fiscal year.
--$10 million for Compensated Work Therapy and CWT/Therapeutic
Residences. This level of funding would enable VA to continue
to support existing CWT and CWT/TR activities.
--$6 million for the VA staffing component of the HUD-VASH program.
Under this program VA disburses Housing Choice Vouchers and
provides case management services to 1,780 chronically homeless
veterans.
--$5 million for a demonstration grant program for homeless veterans
with special needs, the fiscal year 2005 level authorized by
Public Law 107-95.
--$6 million to establish dental care services for certain homeless
veterans, as authorized by Public Law 107-95. The CBO estimate
that accompanied Public Law 107-95 estimated this provision to
cost $6 million annually. VA implementation of this authority
has been mixed.
--$750,000 for technical assistance grants for nonprofit community-
based groups, the fiscal year 2005 level authorized by Public
Law 107-95.
--$500 million increase over the fiscal year 2004 level of VA
spending on mental health and substance abuse care, in part to
implement provisions of Public Law 107-95 requiring the VA to
ensure that each primary care facility of the Department
develops and carries out plans to provide mental health
services and substance abuse services.
--$27 million for additional comprehensive homeless service centers,
as authorized in Public Law 107-95. The CBO estimate that
accompanied Public Law 107-95 estimated this provision to cost
$27 million annually.
Of the programs and authorities above, we call special attention to
our recommendations for the Homeless Provider Grant and Per Diem
program and the Homeless Veteran Service Provider Technical Assistance
program, as these are most germane to the community-based, faith-based,
and local public organizations we represent.
The Homeless Provider Grant and Per Diem Program provides
competitive grants to community-based, faith-based, and public
organizations to offer transitional housing or service centers for
homeless veterans. The GPD program is an essential component of the
VA's continuum of care for homeless veterans, assuring the availability
of social services, employment supports, and direct treatment or
referral to medical treatment. VA reports that in fiscal year 2002, GPD
grantees provided 11,013 ``episodes of care'' at an average 85 days
length of stay per episode--and at an average cost of only $1,674 per
episode. Using this figure, an increase of the GPD allocation from its
current $70 million to its full authorized level would enable VA to
provide a bridge from homelessness to long-term rehabilitation or
permanent housing for 3,345 more homeless veterans. We urge the
subcommittee to include report language with the fiscal year 2005 VA-
HUD appropriations measure urging the Secretary to allocate VA
appropriations to the GPD program at the $75 million authorized level.
The Homeless Veteran Service Provider Technical Assistance Program
makes competitive grants to organizations with expertise in preparing
grant applications to provide technical assistance to nonprofit
community-based and faith-based groups with experience in providing
assistance to homeless veterans in order to assist such groups in
applying for homeless veterans grants and other grants addressing
problems of homeless veterans. Community-based and faith-based
organizations serving homeless veterans rely on a complex set of
funding and service delivery streams with multiple agencies in order to
assemble comprehensive housing and supportive services. These providers
face a capacity gap around managing this complexity. We are proud to
have successfully competed for funding under this program. We believe
we have been effective stewards of the TA funds and look forward to
participating in future competitions. We urge the subcommittee to
include report language with the fiscal year 2005 VA-HUD appropriations
measure urging the Secretary to allocate VA appropriations to the
homeless veteran service provider TA program at the $750,000 authorized
level.
Capital Asset Realignment (CARES).--We are committed to assisting
the men and women who have served our Nation in the military in
accessing adequate nutrition, decent shelter, safe, affordable, and
permanent housing, health care, and employment assistance or income
supports. With that goal in mind, we work to ensure that organizations,
agencies, and groups desiring to assist veterans with these most
fundamental human needs secure the public and private resources,
including capital assets, necessary to provide opportunities and
supports to them. Hence we were and remain quite active in
participating in the VA's Capital Asset Realignment for Enhanced
Services (CARES) process.
With an estimated 500,000 veterans homeless at some time during a
year and the VA reaching only 20 percent of those in need, 400,000
veterans remain without services from the department responsible for
supporting them. In the mean time, numerous VA properties sit vacant or
underutilized. We had hoped that the CARES process would have been the
moment when homeless veteran needs could be finally aligned with VA
property availability, thus making a major stride toward ending
homelessness for our Nation's veterans. In particular, we had hoped
that the process would have elicited from the VA a commitment to fully
implement the McKinney-Vento Title V (surplus property) program. Sadly,
the Draft National CARES plan submitted by the Department to the CARES
Commission failed to articulate a coherent national plan to deploy its
capital assets to maximize housing and supportive services
opportunities for homeless veterans, and further, neglected to even
reference the McKinney-Vento Title V program.
We are pleased that the Commission surfaced our concern in its
final report to the Secretary. The Commission recommended that ``any
study involving excess or surplus property should consider all options
for divestiture, including outright sale, transfer to another public
entity, and a reformed EUL process. VA should also consider using
vacant space to provide supportive services to homeless veterans'' (p.
3-33).
While the Commission recommends a helpful first step, we are urging
the Department to be even more vigorous in ensuring that vacant or
underutilized VA properties are first made available to organizations
serving those in greatest need rather than continuing to gather dust or
being converted to commercial purposes. We urge the subcommittee to
include report language with the fiscal year 2005 VA-HUD appropriations
measure urging the Secretary to take the following actions with regard
to management of capital assets:
--issue a Department-wide directive that articulates that surplus,
excess, unutilized or underutilized VA properties shall first
be made available on a no-cost or lowest-cost basis to
nonprofit or public organizations responding to the human needs
of veterans (and low-income persons in general secondarily),
with a preference for organizations experienced in serving
homeless veterans;
--establish as a Departmental goal the establishment of at least
50,000 additional supportive housing units for homeless
veterans on VA property and instruct VISNs to develop concrete
action plans for reaching this goal;
--instruct VISNs to identify and advertise properties currently or
potentially suitable and available for disposition under the
McKinney-Vento Title V program;
--instruct VISNs to use the Title V criteria for determining
suitability for homeless uses when conducting these property
assessments; and
--take action to ensure the Department's full compliance with the
Title V program; prepare an analysis of VA property acquisition
and disposition statutes, regulations, and policy guidance and
their intersection with the Title V program; and recommend or
adopt any changes needed in order for the VA to fully
participate in the Title V program.
hud appropriations and program management recommendations
Appropriations for HUD-VASH.--The Housing and Urban Development-
Veterans Affairs Supportive Housing (HUD-VASH) program provides
permanent housing subsidies and case management services to homeless
veterans with mental and addictive disorders. VA screens homeless
veterans for program eligibility and provides case management services
to enrollees. HUD allocates rental subsidies from its Housing Choice
Voucher program to the VA, which then distributes them to the
enrollees. Rigorous evaluation of the program conducted by the VA's
Northeast Program Evaluation Center (NEPEC) indicates that HUD-VASH
significantly reduces days of homelessness for veterans plagued by
mental and addictive disorders. HUD currently allocates 1,780 housing
choice vouchers under this program.
The Homeless Veterans Comprehensive Assistance Act of 2001 (Public
Law 107-95) authorizes HUD to allocate 500 additional HUD-VASH vouchers
to VA in each of fiscal year 2003 through fiscal year 2006. Congress
authorized the additional vouchers because those currently in
circulation have been fully utilized by formerly homeless veterans, and
only a small number become available each year to veterans who are now
ready to resume living in the community. Inexplicably, HUD has not
requested funding for additional HUD-VASH vouchers in any of its past
three budget submissions to Congress. This failure is particularly
perplexing given that the administration, with Congressional support,
has made a commitment to ending chronic homelessness. Yet, the HUD-VASH
program, which addresses the very population addressed by the chronic
homeless initiative, remains frozen.
We urge the subcommittee to include in the fiscal year 2005 HUD
appropriation at least $13.5 million explicitly for the HUD-VASH
program. This level of funding assumes an average annual cost per
voucher of $7,000 and would sustain the current 1,780 HUD-VASH vouchers
in circulation, fill the backlog of 1000 additional authorized vouchers
that were not put into circulation in fiscal year 2003 and fiscal year
2004, and fund 500 additional HUD-VASH vouchers authorized for fiscal
year 2005.
Appropriations for HUD McKinney-Vento Programs.--HUD McKinney-Vento
programs (Emergency Shelter Grant, Supportive Housing, Shelter Plus
Care, and Section 8 Moderate Rehabilitation Single Room Occupancy for
Homeless Individuals) provide access to emergency shelter, transitional
and permanent housing, and support services for homeless people across
the Nation. From a veteran perspective, HUD McKinney-Vento programs are
especially important for financing housing and services that the VA
itself is not authorized to offer (e.g., emergency shelter, permanent
housing), services that VA is not authorized to delegate to nonprofit
organizations (e.g., case management services), and health and
supportive services to homeless veterans who live far from VA medical
centers or outside the range of VA homeless outreach teams. We urge the
subcommittee to include at least $1.8 billion for HUD McKinney-Vento
programs in fiscal year 2005 VA-HUD appropriations legislation. In
addition, we support the administration's request for the Samaritan
Initiative, which includes a $50 million component for HUD and a $10
million component for VA.
HUD McKinney-Vento Program Management.--HUD McKinney-Vento programs
are the largest source of Federal funding for emergency shelter,
transitional and permanent housing, and support services for homeless
people. Despite comprising between one-quarter and one-third of the
homeless adult population overall, homeless veterans do not receive
nearly that proportion of McKinney-Vento resources. Homeless veterans
are inadequately served by many general homeless assistance
organizations because such agencies fail to identify veterans as they
enter their programs and thus do not know to refer them to VA programs
for which they may eligible or to homeless veteran service providers
with specialized expertise. In addition, some regional and local
homeless assistance planning bodies are not permitting homeless veteran
service providers or VA representatives to participate meaningfully in
their planning and priority setting processes. Our efforts to persuade
HUD to take action to ensure fairness in the allocation of resources
for and focused attention to veterans experiencing homelessness have
fallen on deaf ears. We urge the subcommittee to include report
language with the fiscal year 2005 appropriations measure urging the
Secretary to issue HUD McKinney-Vento application or program guidance
as follows:
--require applicants for HUD McKinney-Vento homeless assistance funds
to develop specific plans for housing and services to homeless
veterans. The veteran plans should inventory existing and
proposed targeted homeless veteran programs in the service
area; identify the unique housing and services needs of
homeless veterans in the service area; outline a strategy for
addressing services gaps; address how homeless assistance
providers will screen housing and services users for military
service experience; and describe processes for referring
homeless veterans to VA or nonprofit homeless veteran service
providers in the service area (if any exist).
--require collaboration between continua of care established for the
purpose of competing for HUD McKinney-Vento homeless assistance
funds and Community Homelessness Assessment, Local Education,
and Networking Groups (CHALENGs) established by VA medical
centers for the purpose of identifying and addressing unique
needs of homeless veterans in their service areas.
--require that continua of care established for the purpose of
competing for HUD McKinney-Vento homeless assistance funds
include at least one homeless veteran service provider, at
least one homeless veteran, and representatives of the VA
medical center(s) and Veterans Benefit Administration regional
offices within the service area of the continuum.
Housing Assistance for Low-Income Veterans.--While the Federal
Government makes a sizeable investment in homeownership opportunities
for veterans, there is no parallel national rental housing assistance
program targeted to low-income veterans. Veterans are not well-served
through existing housing assistance programs due to their program
designs. Low-income veterans in and of themselves are not a priority
population for subsidized housing assistance. And HUD devotes minimal
attention to the housing needs of low-income veterans, as exemplified
by the long-standing vacancy in the position of special assistant for
veterans programs within the Office of Community Planning and
Development. It is imperative that Congress elevate national attention
to the housing assistance needs of our Nation's low-income veterans. We
urge the subcommittee to include report language with the fiscal year
2005 VA-HUD appropriations measure instructing the Secretary to:
--conduct a quantitative and qualitative study of a representative
sample of low-income veterans to determine the extent of
housing insecurity among this population, including their
barriers to rental housing assistance and homeownership and
their past or current homelessness or risk for future
homelessness.
--amend the guidelines for public housing authority plans for public
housing and Section 8 and consolidated plans to include
veterans sections. The new sections should identify veteran
housing needs, priority veteran housing needs, and articulate a
veteran housing strategy. In addition, the guidelines should
instruct jurisdictions to include veterans, veterans service
organizations, homeless veteran service providers, and VA
representatives in the public participation processes used to
develop the plans.
--develop a guide for assisting low-income veterans in accessing
Federal, State, and local housing assistance resources and
services.
--develop a guide for assisting veterans service organizations and
homeless veteran service providers in accessing Federal, State,
and local housing assistance funds and housing and community
development planning processes.
--fill the vacancy in the Special Assistant for Veterans Programs
position within the Office of Community Planning and
Development.
ICH APPROPRIATIONS AND PROGRAM MANAGEMENT RECOMMENDATIONS
We are pleased that the Secretary of Veterans Affairs will assume
the position of Chair of the U.S. Interagency Council on Homelessness
in April 2004. This occasion provides a tremendous opportunity for the
Federal Government to focus on the needs of homeless veterans that are
best met through agencies other than the VA itself. We have urged the
VA Secretary to use his position as ICH Chair to focus on the following
interagency efforts: prevent future homelessness of separating service
members (DOD, DOL, VA), ensure the housing security of low-income
veterans (HUD, Ag), ensure homeless veteran and veteran service
provider access to mainstream programs and funding streams (DOL, HHS,
HUD); and deploy excess and surplus Federal capital assets to best
address the needs of homeless persons (DOD, VA, GSA, HUD, HHS). We urge
the subcommittee to include report language with its fiscal year 2005
appropriation measure urging ICH to declare its 2004-2005 operating
cycle as the ``year for homeless veterans'' and charging ICH to address
homelessness prevention among separating service members, housing
security of low-income veterans, veteran and veteran service provider
access to mainstream resources and services, and government-wide
capital asset management. In addition, we urge the subcommittee to
include $1.5 million for ICH as requested by the administration.
CONCLUSION
The National Coalition for Homeless Veterans appreciates the
opportunity to submit recommendations to Congress regarding the
resources and activities of HUD, VA, and ICH. We look forward to
continuing to work with the Appropriations Committee in ensuring that
our Federal Government does everything within its grasp to prevent and
end homelessness among our Nation's veterans. They have served our
Nation well. It is beyond time for us to repay the debt.
______
Prepared Statement of the Save AmeriCorps Coalition
As members of the Save AmeriCorps Coalition, we are writing to urge
you to support the President's fiscal year 2005 funding request of $452
million for AmeriCorps grants and the National Service Trust. We very
much appreciate the increase in funding that you provided last year.
This year's request reflects a 2 percent increase over last year's
funding level. These funds are critical if AmeriCorps is to continue to
strengthen and renew our communities through service, and achieve the
goal of having 75,000 AmeriCorps members this year.
In his 2002 State of the Union address, President Bush called upon
``every American to commit at least 2 years . . . to the service of
your neighbors and your Nation.'' Community based organizations and
national nonprofit organizations responded to the President's call.
They reported large increases in the number of people wanting to serve
their communities through AmeriCorps programs across the Nation.
AmeriCorps members serve with more than 2,100 local and State
nonprofit organizations, public agencies, and faith-based organizations
funded through State commissions as well as with national nonprofit
AmeriCorps programs including Teach for America, the National
Association of Community Health Centers, the Red Cross, Habitat for
Humanity, City Year, and Public Allies, the National Association of
Service and Conservation Corps, and Jumpstart.
AmeriCorps members teach in underserved schools, tutor and mentor
youth, build affordable housing, provide public health services,
prevent forest fires and do disaster relief, run after-school programs,
and help communities respond to disasters. Hundreds of AmeriCorps State
programs clean rivers and streams, enrich after school programs,
support local law enforcement, deliver services to the elderly, and
meet other needs defined by the communities they serve. Since September
11, the AmeriCorps program has expanded its work in public safety,
public health and disaster relief to assist in homeland security.
During the funding debate last year, virtually every governor, more
than 150 mayors, hundreds of university presidents, and corporate and
civic leaders publicly recognized the good that AmeriCorps has
accomplished since its creation 10 years ago. More than 100 editorials
provided ample evidence of how AmeriCorps members improved their
communities.
This overwhelming bipartisan support reinforced support for the
programs. Because of your efforts last year, local communities
throughout the Nation will continue to be served by as many as 75,000
AmeriCorps members. To sustain this level of service, we urge you to
fund AmeriCorps at the level proposed by President Bush in his fiscal
year 2005 budget.
This year the Corporation for National and Community Service has
embarked on a rulemaking process that could affect the future of
AmeriCorps as much as any substantial reduction in funding. The
Coalition has submitted a series of recommendations to the Corporation
that we believe can make AmeriCorps stronger, more efficient, and more
responsive. A summary of that statement follows. We have attached the
entire submission for the Record.
RECOMMENDATIONS FOR RENEWING AMERICORPS--AND DELIVERING ON PRESIDENT
BUSH'S NATIONAL CALL TO SERVICE THROUGH AMERICORPS
In response to the questions raised in the Notice Inviting
Preliminary Public Input in Advance of Rulemaking, which appeared in
the Federal Register on March 4, 2004, the Save AmeriCorps Coalition
has prepared recommendations based on the following principles:
--Affirm the intentions of the National and Community Service Trust
Act of 1993 with regard to the purpose, quality and
sustainability of AmeriCorps programs;
--Support the role of Governors and States to decide what is best for
their communities;
--Promote competition and reward quality;
--Encourage innovation, entrepreneurship and replication of
successful programs;
--Protect and strengthen the public-private partnership that is the
hallmark of AmeriCorps; and
--Build-up and improve the national service infrastructure based on
14 years of experience.
New rules should support the intent of Congress as reflected in the
National and Community Service Act of 1990, later amended in 1993, and
should build on what we have learned over the last 14 years about what
works. We believe that the law must serve as a point of reference in
considering any reforms to AmeriCorps. We are concerned that some of
the proposals, especially those related to sustainability, reflect
neither the spirit nor the letter of the enacted legislation and are
being considered without hearings or review by the authorizing
committees in the Senate and the House.
In the National and Community Service Trust Act of 1990, as amended
in 1993, Congress set the following goals for AmeriCorps:
--``To meet the unmet human, educational, environmental and public
safety needs of the United States;
--``To renew the ethic of civic responsibility and the spirit of
community throughout the United States;
--``To expand educational opportunity by rewarding individuals who
participate in national service with an increased ability to
pursue higher education or job training;
--``To encourage citizens of the United States, regardless of age,
income, or disability, to engage in full-time or part-time
national service;
--``To reinvent government to eliminate duplication, support locally
established initiatives, require measurable goals for
performance, and offer flexibility in meeting those goals;
--``To expand and strengthen existing service programs with
demonstrated experience in providing structured service
opportunities with visible benefits to the participants and
community;
--``To build on the existing organizational service infrastructure of
Federal, State and local programs and agencies to expand full-
time and part-time service opportunities for all citizens; and
--``To provide tangible benefits to the communities in which national
service is performed.'' Sec. 2. [42 U.S.C. 12501].
We are confident that by working together we can succeed in
strengthening, rather than weakening, the national service field
through rulemaking. It is in this spirit that we offer the following
recommendations:
--We support a definition of sustainability that reflects the
language in the original law and includes strong and broad
based community support.--New rules should affirm the
definition of sustainability--which includes ``strong and broad
based community support'' as a criterion--in the 1993 amendment
to the National and Community Service Act of 1990.
Demonstration of such support may include but not be limited
to: partnerships at the local level; volunteers serving with,
and supported by, AmeriCorps members; endorsement from public
officials; funding diversification; etc. Several of the
rulemaking proposals being considered with regard to
sustainability including time limits and reducing the Federal
share of the cost per member are not consistent with current
law. The National and Community Service Trust Act of 1993
defines sustainability as ``evidence of the existence of (A)
strong and broad-based community support for the programs; and
(B) multiple funding sources or private funding for the
program.'' We strongly support this definition of
sustainability and oppose any definition that eliminates strong
and broad-based community support as a criterion or that
suggests that sustainability should mean operating AmeriCorps
programs with declining levels of Federal support.
Congressional authorizers wisely understood that sustainability
involves more than financial support and is critical to the
sustainability and success of AmeriCorps programs.
--Time limits on program participation in AmeriCorps would decrease
sustainability, stifle competition, and discourage private
investment.--Time limits contradict the original legislative
intent to invest in quality programs that meet community needs.
--(A) Time limits go against the fundamental, American idea of
competition.--CNCS should fund quality programs that offer
the best return on taxpayer dollars by ensuring that
competition for funding is in no way limited or restricted
by time or amount. Evidence indicates that competition is
bringing new programs into AmeriCorps. A recent survey
conducted by America's Service Commissions, reported that
90 percent of the AmeriCorps portfolio has turned over
since the first funding cycle. (Only 64 of over 800 current
AmeriCorps State grantees have been funded since 1994). Of
the 40+ national nonprofit grantees, only a handful
received their first funding in 1994. Competition has
ensured a dynamic ``marketplace'' for AmeriCorps funding.
--(B) Time limits would lead to a decrease in sustainability.--The
presumption that in order to increase a grantee's
sustainability, the Corporation's support for a program or
project should decrease over time contradicts the original
legislation, which seeks to, ``expand and strengthen
existing service programs with demonstrated experience in
providing structured service opportunities with visible
benefits to participants and the community.'' Gradual
reductions in program funding would disinvest in programs
that are meeting the sustainability objectives as defined
in current law.
--(C) When Federal funding is cut over time, private sector funding
disappears--killing AmeriCorps' hallmark of a public-
private partnership that works.--Many private sector
funders contribute to AmeriCorps because they know their
funding is leveraged through public sector support. Some
private funders would withdraw support if CNCS funding was
no longer available, as demonstrated by a decrease in
private sector support for some AmeriCorps programs in
2003-2004, when Federal AmeriCorps funding was cut. Rather
than promoting sustainability, setting time limits decrease
sustainability and result in the closure of some programs.
--States know best.--The Corporation should support the spirit and
practice of devolution and allow governors, State commissions,
and parent organizations--which best understand local need and
capacity--the maximum flexibility to manage for sustainability
and inform national guidelines set by the Corporation. Specific
calibrations should be managed by State commissions, as well as
national directs who should be held to the same standards as
these commissions. States must be given maximum flexibility to
ensure quality, accountability, and effectiveness, including
the ability to devise matching requirements with aggregate
percentages as a goal. State commissions are best able to
determine how to balance their State-wide portfolio between
programs struggling to meet match requirements with those that
can overmatch, thus effectively sharing resources throughout
their diverse regions.
The Corporation should also devise rules that recognize that
certain regions of the country, including many low-income,
minority, and rural communities, lack private sector funders to
offset program costs. A ``one-size-fits-all'' match--
particularly a large non-Federal match--would pose such a
hardship that the communities that most need AmeriCorps
services would almost certainly lose them. Community members
could no longer serve to improve their own communities.
--AmeriCorps is a public-private partnership that works--but is
easily destroyed by abandoning Federal investment.--It is
imperative that the Corporation not abandon the public-private
partnership by dramatically scaling back Federal support over
time. Private sector partners insist that one of their primary
motivations for investing in specific AmeriCorps programs is
that the public-private partnership enables all parties to
leverage their investments. AmeriCorps program directors
continually stress that Federal funds attract private dollars.
There is no evidence that shows the private sector is either
willing or able to absorb the Federal Government's share in the
AmeriCorps partnership. Congress never intended that non-
Federal sources would pick up the lion's share of AmeriCorps
costs. It is essential that CNCS accurately count all private
sector investment in AmeriCorps. Currently, the Corporation
only requires organizations to report on funding raised to meet
the required match, and additional leverage is not accounted
for. Only by full accounting of all contributions to AmeriCorps
can the Corporation have a true understanding of how Federal
investment is leveraged.
--Use AmeriCorps members as tools to build capacity.--One way to
increase sustainability is to allow AmeriCorps members to
perform the same capacity building activities that VISTA
members do, including raising funds to support programs and
services. We propose that AmeriCorps members be permitted to
enhance their program's sustainability--and develop new
skills--by allowing them to participate in the same capacity-
building activities as AmeriCorps*VISTA members. We support
extending these long-standing authorities to all AmeriCorps
members, without making them the exclusive focus of the
program.
--AmeriCorps is highly cost-effective when compared to other
successful service providers.--The Corporation should revert to
the fiscal year 2003 cost per member of $12,800 and should
adjust for inflation thereafter. The Federal share of the cost
per member has already declined in real terms over the past
decade. In 7 years, the cost per FTE has increased only 9
percent (from a low of $11,250 in 1998 to $12,400 in 2004)
while the mandatory minimum living allowance has been cost-of-
living-adjusted by 18 percent in the same time frame (from
$8,340 in 1998 to $10,200 in 2004). This means that increasing
percentages of program operating costs have been absorbed by
private and other public sector funders. In 2004, the minimum
living allowance has been increased while the cost per member
was decreased, resulting in a $700 per member cut to programs.
Furthermore, mandated health insurance costs have risen by over
100 percent while the average cost per member grew by only 3
percent. The net result is that programs are being starved of
operating dollars. Such changes are so destabilizing that some
programs have already closed.
--To leverage non-Federal funds, the Coalition supports increasing
the match requirement for program costs from the statutory set
level of 25 percent to 33 percent.--Programs, especially those
in rural and poor urban areas, already find it difficult to
secure private sector support. The Coalition would nonetheless
support increasing the match requirement from the 25 percent
supported by the statute to 33 percent, provided governors,
States and parent organizations have maximum flexibility to
meet or exceed match requirements in the aggregate. Programs
have already exceeded the statutory requirement of 25 percent
by meeting a 33 percent match for program operating costs over
the last several years. Further increases to the match
requirement would penalize programs for success and limit the
number of new applicants who can afford to participate in
AmeriCorps, especially those in areas where resources are
scarce. Instead, the Corporation should create incentives to
capture the true extent to which AmeriCorps programs are
leveraging resources.
--Challenge grants promote competition and leverage private funds.--
We agree with the goal of trying to stimulate private sector
investment through incentives, such as challenge grants. The
Corporation's challenge grant fund should be increased to $50
million. The National and Community Service Trust Act allowed
for Federal challenge grants. We understand that the response
was an overwhelming. We suggest that the Corporation provide
incentives to programs by expanding the challenge grant
program.
--More efficiency and less administrative burden from the Corporation
will make programs more sustainable.--The Corporation should
devise strategies for reducing the administrative burden on new
programs and give States more flexibility to manage match
requirements across portfolios. CNCS should disaggregate
planning grants from a State's costs per FTE, and/or ensuring
that States annually receive a fixed number of Education Award
Only slots that they may award after a local competitive
process. These two strategies will specifically benefit new
grantees and will prepare them for managing larger grants and
programs. New grantees require extensive training and
oversight. Their expense inflates the average cost per member,
and actually deters States from awarding planning grants and
discourages them from bringing new programs into the AmeriCorps
portfolio. State commissions report that a year of planning is
advisable prior to program implementation. States should be
offered a set number of EAO slots by formula allocation to
allow them to gradually start new programs, bring down their
average cost per member and use the remainder where it is most
needed.
--Healthcare and childcare are essential to ensuring that all
Americans can serve their country.--The Corporation should
maintain the current statutory requirements for the Federal
share of health costs and childcare costs to preserve equal
access to AmeriCorps for all Americans. Healthcare and
childcare are critical to ensuring that all Americans,
regardless of income level, have the opportunity to participate
in AmeriCorps. Means testing would add a significant
administrative burden and expense to programs stretched thin by
complex requirements. In addition, AmeriCorps members that have
no other means of support would not be able to afford health
coverage on the subsistence level living allowance they receive
in exchange for a year of full-time service.
If childcare benefits are reduced, it is likely that low-income
parents would not be able to participate in AmeriCorps. This
kind of rule change would have a dramatic impact on areas like
rural Mississippi, an economically depressed area where the
Delta Reading Corps is composed almost exclusively of young
single mothers. Members must already demonstrate that they are
income eligible and have children under 13 to receive the
childcare benefit and reimbursement rates are based on State
parameters.
Participation in AmeriCorps should not be denied to citizens from
low-income communities. AmeriCorps programs offer many
disadvantaged young people the chance to develop employment and
leadership skills and further their education. Therefore, rules
should ensure that AmeriCorps programs allow the largest number
of individuals from diverse backgrounds to serve; in
particular, youth who are low-income and/or out of school.
Rules should be sensitive the fact that programs whose
enrollment focus is on low-income, out of school, and minority
young people are likely to have challenges in certain areas
including recruitment and retention of members.
--Programs depend on the Federal contribution to member living
allowance.--The Corporation should maintain the current
statutory requirements for the Federal share of the living
allowance at 85 percent, which is already burdensome for many
programs. The match share of the living allowance must be
provided in cash and from non-Federal sources. Many programs,
particularly new programs, those in rural or poor areas, stand
alone national service programs and those operating within
small nonprofit organizations, rely on in-kind donations to
meet match obligations and raising a cash match is already a
struggle.
--The Corporation should strengthen and simplify performance
measurement.--The current performance measurement system is
burdensome, confusing and time consuming and does not allow the
Corporation to make most effective use of the date it collects.
The Corporation should develop a standardized list of outcomes
and benchmarks for which they want to collect data, and require
grantees to report on those that are applicable to their
program's mission and model. Performance measures are critical
and grantees should be held accountable, but the process needs
a more realistic timeframe and simplified directions. The
Corporation should design aggregated performance measurement
tools for the field and provide grantees with relevant training
and technical assistance. It should design separate performance
measures for intermediary organizations to ensure that
appropriate outcomes are designated without additional
administrative burden. In addition, the Coalition urges the
Corporation to require end outcomes within a more realistic and
useful time frame instead of during the first year of a grant.
We recommend creating standard performance measures to
aggregate data in the areas of civic education and volunteer
generation to eliminate time-consuming guesswork for programs.
We also recommend that the Corporation allow more flexibility
in WBRS reporting.
--The ``No-Refill'' Rule hurts communities and schools that depend on
AmeriCorps members.--The Corporation should allow States and
programs to refill AmeriCorps positions following attrition of
members or to re-budget between categories. In the current
system, programs cannot re-budget unused stipends and benefits
or recruit or enroll new members to fill the slots left open by
attrition. This rule undermines commitments to communities and
schools. Programs are faced with an even larger burden as they
must raise additional dollars to cover fixed costs, such as
staff and administration. Because attrition is a natural and
expected occurrence for every program, organizations are
guaranteed a revenue shortfall by the end of the year.
Administrative funds, capped at 5 percent, are also reduced
proportionately to what is recovered. True costs are never
captured. The inability to provide a contracted number of
members to a site may mean that match funding from the site
will dry up. This can put small programs out of business.
According to a recent GAO survey, 80 percent of programs
surveyed commented that the no-refill rule will have a
generally or very negative effect on their program (Management
of AmeriCorps and the National Service Trust, January 2004, pp.
25-26).
This regulation devised in response to a crisis, has had clear,
unfortunate, and unintended consequences. Refilling slots has
been the practice in the past, with an historic usage rate of
75 percent. Flexibility to refill will therefore produce good
results for programs and communities and will not cause a
surplus to accumulate in the Trust.
--Education Award Only slots should be a tool for State flexibility
and cost-effectiveness.--A maximum of 40 percent of the
AmeriCorps portfolio should be allocated to Education Award
Only programs, allowing States to reduce cost per member, and
be responsive to both local resources and local needs. The
Education Award Only Program was introduced in 1998 to engage
more citizens in service and to lower the average cost per
member. State commissions should have the flexibility to award
Education Award Only slots to ensure that the overall portfolio
cost per member is within the prescribed maximum and that
programs that need funding or provide more comprehensive
service have the funding they need. This allows for wide
variation in geographic location, market analysis and funding
capacity.
--Properly trained corps members from all educational levels and
backgrounds can be successful tutors and mentors.--
Paraprofessional requirements for tutoring programs will
unnecessarily reduce the number of opportunities to serve and
limit the number of citizens who can give back to their
communities. The Corporation should focus on the quality,
frequency and effectiveness of member training and performance
measurement rather than imposing paraprofessional requirements
on individual members. AmeriCorps members--senior citizens as
well as young people--make excellent and effective tutors for
children and youth. In addition to tutoring young people, these
members offer a consistent presence for children and often
serve as informal mentors to their tutees. An independent
evaluation of Experience Corps, a program that engages
Americans over the age of 55 in vital public and community
service, showed that 69 percent of students that were tutored
by Experience Corps members, who receive rigorous training but
are not required to be paraprofessionals, improved by at least
one grade level. The Corporation should not require that every
member be a high school graduate or have earned a GED because
this may disqualify people who have the capacity to be
successful tutors.
--To improve efficiency and effectiveness, grant cycles should match
needs of programs and the Corporation.--To accommodate the
large number of programs that serve in schools, the Corporation
should adjust the timing of the grants cycle to a full year
between the date of the RFP and the date of the grant award,
from June to June. The Corporation should award grants no later
than June 1 so that members may be recruited on or very near
that date and enrolled. CNCS should clarify that members are
allowed to be enrolled as of the award notification date, not
the contract execution date. The current time frame does not
work for programs with a July 1 start date, who need to recruit
members to begin service at the start of the school year.
Currently the Corporation requires grantees to have a signed
contract in place prior to charging costs or earning hours, and
in some States, programs have waited as many as 8 months for
contracts to be in place because of the involvement of other
government agencies or fiscal agents.
--The Corporation should simplify the grant process by offering 3-
year grants with a simple renewal process.--A longer grant
cycle would increase efficiency, reduce administrative burdens
and costs, reduce paperwork, and ensure continuity in planning.
The Corporation can simplify the grants process and reduce the
administrative burden on programs by maximizing the use of
Progress Reports, developing 3-year budgets from the beginning
with new budgets annually, and allowing State commissions to
approve continuations and changes. For new grantees, the
Corporation should consider amending the initial grant term to
2 years to weed out underperforming programs. Those programs
that are successful after 2 years would be eligible to compete
for 3-year funding.
--The Corporation should develop separate guidelines to foster the
development of both new and existing professional corps.--While
professional corps programs can and should meet many of the
criteria that other AmeriCorps programs meet, there are some
critical distinctions between professional corps and other
service corps that should be addressed, including the timing of
the grants cycle, which adversely affects teacher corps and
other programs operating in schools. In addition, some of the
guidelines designed for AmeriCorps programs do not fit
professional corps and should be modified.
--The Corporation should build on the systems and efficiencies
offered by State commissions, not repeat them.--The Corporation
has a network of State commissions that act as grantmaking
entities in every State save one. These organizations have
boards that provide diverse views to policy and program
development and serve as stewards of the grant-making
processes, ensuring their integrity. The Corporation should
eliminate processes that repeat these activities at the Federal
level and focus some of those resources on the existing State
commission network. In addition to saving the resources spent
on the peer review process, it could include a reconstruction
of the recruitment, training and technical assistance systems
as well.
We offer these suggestions in the spirit of strengthening
AmeriCorps within the bounds of the current law. We appreciate the
invitation to offer our comments, and look forward to continuing the
conversation with the Corporation as the rulemaking process progresses.
We would be happy to provide more detail or additional information
about any of the above suggestions.
______
Prepared Statement of the Federation of American Societies for
Experimental Biology
Mr. Chairman and distinguished members of the subcommittee, I am
Robert D. Wells, Ph.D., President of the Federation of American
Societies for Experimental Biology (FASEB) and the Director of the
Center for Genome Research at the Institute of Biosciences and
Technology, Texas A&M University, Texas Medical Center in Houston.
Thank you for the opportunity to testify on behalf of FASEB, the
largest coalition of biomedical research associations in the United
States. FASEB, comprised of 22 scientific societies with more than
65,000 scientists, serves as the voice of biomedical scientists
nationwide. Our mission is to enhance the ability of biomedical and
life scientists to improve, through their research, the health, well-
being and productivity of all people.
Let me express thanks on behalf of FASEB for the support that this
committee has made to the National Science Foundation (NSF) and the
Department of Veterans Affairs (VA). We believe that it has been money
well spent in the public interest and that sustained investment will
continue to pay extraordinary dividends in the years to come.
NSF has been the steward of America's science and engineering
investments for more than 50 years and continues to support the
fundamental research that leads to groundbreaking advances in science,
engineering and mathematics. For this reason, we urge the subcommittee
to sustain the vitality of NSF and set the Foundation's budget on the
doubling path, which was authorized in 2002, with an increase of 15
percent to $6.39 billion for fiscal year 2005.
For the Department of Veterans Affairs (VA), I recommend that you
support an fiscal year 2005 appropriation of $460 million for the
direct costs of the Medical and Prosthetics Research Program. I also
urge you to support an appropriation of $45 million for improvements,
upgrades and renovation of the VA's increasingly outdated research
facilities. With thousands of military personnel engaged in overseas
combat, this is the optimum time to invest in research that could have
a direct impact on their post-deployment quality of life.
SUPPORT OF THE NATIONAL SCIENCE FOUNDATION IS CRITICAL FOR OUR NATION
TO REMAIN AT THE FOREFRONT OF SCIENTIFIC DISCOVERY
The National Science Foundation is one of our Nation's most
important agencies for promoting and funding scientific, mathematical,
and engineering research and education. This support is across all
fields of science, as well as for interdisciplinary partnerships and
new frontiers of scientific inquiry, such as nanotechnology and
biomedical research.
Many new products, procedures, and methods have accrued from the
NSF investment in basic research. Therefore, research of this kind is
essential to breakthroughs relevant to our modern world even though at
the time of discovery its relevance is not suspected.
As an example, Magnetic Resonance Imaging--a technology that is
highly valued in health care today--is the result of five decades of
advances in mathematics, physics, chemistry, and biology. And not
surprisingly, NSF supported much of the research that made MRI
possible. We must continue to nurture the seed of scientific discovery
from which today's technology flows.
The recent budget request proposes a 0.6 percent increase in the
overall Federal basic research budget of the U.S. Non-medical Federal
basic research budget will decline by 2.5 percent in fiscal year 2005.
NSF is an important agency for supporting basic research. In fact,
although the NSF accounts for only 4.0 percent of Federal spending for
research and development, it supports nearly 50.0 percent of the non-
medical basic research at our colleges and universities.
Federal support, applied broadly across all disciplines, is
critical for the U.S. scientific enterprise to remain healthy and be a
contributor to innovation 20 to 30 years from now. Neglect of basic
inquiry, over time, will inhibit the growth of innovation and affect
the country's economic stability as well as our national security.
Furthermore, the foundation's mission is imperative to ensuring the
continuous stream of technological innovations that are essential to
reinforcing and expanding one of America's main competitive advantages,
technological leadership in the global economy.
NSF programs not only provide the underpinnings for technological
innovation, but also help prepare the next generation of scientists and
engineers for the jobs of the future. In a recent Department of
Commerce report, manufacturers have expressed serious concerns about
whether the United States was adequately preparing the next generation
of workers for an increasingly high-tech workplace that requires
advanced labor skills. NSF's Education Directorate provides critical
support for the education and training of scientists and researchers at
all levels.
NSF prides itself on investing in the best ideas from the most
capable scientists and engineers, as determined by outside reviewers
through a rigorous, merit-based competitive process. In 2003, it
evaluated proposals based on both intellectual merit and broader
society impacts and selected almost 11,000 new awards from more than
40,000 proposals. This is the lowest funding rate in a decade. Greater
support would allow NSF to pursue many unmet opportunities, including
the funding of more highly-rated proposals that will provide the
potential for the pioneering of dramatic scientific advances.
We have all benefited from the investment in NSF, but we must not
be complacent with our past successes. Increased support of basic
research and the education of the next generation of scientists will be
critical in expanding the United States' place at the forefront of
scientific and technological innovation.
THE VA MISSION IS CENTRAL TO THE HEALTH OPPORTUNITIES AND CHALLENGES
FACING OUR NATION'S VETERANS
A fundamental responsibility of the Department of Veterans Affairs
(VA) is to ensure that the Nation's veterans receive the highest
quality of medical care. The success of this mission is dependent upon
the quality and dedication of the physicians and researchers who work
at the VA Medical Centers (VAMCs). By providing a strong environment
for medical research, the VA has been enormously successful in
attracting outstanding physicians to serve our veteran population.
Cooperation between medical schools and VAMCs has flourished because of
the ongoing state-of-the-art scientific research at the VAMCs.
Furthermore, the outstanding quality of patient care in VAMCs can be
directly correlated with the availability of VA research funding and
the close connection with affiliated medical schools.
VA research has underwritten both the recruitment and the retention
of talented physicians, including those hard-to-attract subspecialists
needed to care for the aging and challenging VA patient population. VA
subspecialists are predominantly bench researchers who have chosen to
locate at VAMCs where they can develop and expand their research
laboratories. The availability of research opportunities helps the VA
to fulfill its tri-fold obligation to provide optimal care to patients,
perform cutting edge research and train the next generation of
clinician-scientists who are so needed to bring insight from the
patient's bedside to the laboratory bench and back again to the
patient.
Federally funded advances in the biological sciences have created
an unprecedented opportunity for progress against the diseases and
disorders that plague the veteran population. The administration's
fiscal year 2005 budget proposes a devastating $20 million (5 percent)
cut in the R&D appropriation. If enacted by Congress, the VA would be
unable to maintain its current level of effort in advancing treatments
for conditions particularly prevalent in the veteran population,
including prostate cancer, diabetes, heart diseases, Parkinson's
disease, mental illnesses, spinal cord injury and aging related
conditions. The VA would also have to suspend its major new initiative
in military deployment health research as well as delay plans to expand
efforts in areas such as rehabilitation from traumatic injury, quality
improvement, chronic diseases and diseases of the brain.
Three types of researchers, working together, are required for this
state-of-the-art progress in clinical practice: (1) laboratory
scientists, who have the knowledge and skills to unravel biological
complexities and to translate their discoveries into drugs that
ameliorate disease; (2) clinical researchers, who test whether new
drugs and approaches are beneficial and safe; and (3) health services
researchers, who evaluate the most effective and efficient ways to
utilize new discoveries. No one researcher can function or translate
new scientific findings without an integrative and collaborative
approach to the pursuit of new medical knowledge.
Few research environments attract all three of these types of
researchers. If properly supported, the VA research enterprise can
continue to provide the distinctive opportunity to facilitate and
nurture the important collaborations of the three, while assuring the
veteran population of the best medical care.
The veterans, who have made extraordinary sacrifices for our
Nation, so that we can live in freedom, have relied heavily on
scientific advances for carrying out their missions, in fighting wars
and defending threats to our homeland. They have also relied heavily on
scientific advances for medical diagnoses and treatments they have
received in the VA hospitals. The next generation of veterans will be
no less reliant, and research supported by NSF today will surely
provide significant benefits for them tomorrow.
RESIST PRESSURES TO DEPART FROM MERIT REVIEW
The last issue that I would like to discuss with the subcommittee
does not emanate from the President's budget, but may continue to arise
during congressional consideration. Congress should continue to resist
pressures to depart from merit review at all Federal agencies that
support scientific research, including the VA and NSF. Scientific merit
review remains the best process for allocating research funds to
research projects with the greatest promise. Merit review promotes an
efficient and effective allocation of funds.
A foundation of modern science is the principle that scientific
merit is best evaluated by peer review. Whether judging the suitability
of a manuscript for publication, the selection of grants to be funded,
or programmatic allocation of research funds within an organization,
decisions should be based on the advice of experts who are most
familiar with the science. Recognition by Congress that peer review is
the fairest and most efficient mechanism for allocation of public
resources to support scientific research is a major reason why the
United States leads the world in biomedical research.
If departures from merit review are permitted, pressure will only
intensify--and scientific opportunities will be lost. Investing scarce
resources in anything other than the highest-quality science would be a
disservice to the taxpayers who are funding this investment in future
scientific and health improvements.
We all know that this is an incredibly difficult year for Federal
budgets and that this committee's task will not be very pleasant. But
as you decide how to divide up the allocation among the various
agencies and programs for which you have responsibility, I would ask
you to consider how interrelated these activities truly are. The
investments you make in NSF are investments made in the rest of the VA-
HUD bill. I cite just two examples.
CONCLUSION
Mr. Chairman, I thank you and the subcommittee again for this
opportunity to emphasize the need to adequately support the VA and NSF.
While these agencies are different in purpose, I would like to again
point out that scientific research is at the foundation of both of
their missions. Furthermore, I encourage your support of the merit
review process, which ensures the quality of work and helps maximize
the public's investment in both agencies.
Thank you.
______
Prepared Statement of the American Society of Mechanical Engineers
AEROSPACE DIVISION
Mr. Chairman and members of the subcommittee, the Aerospace
Division of the American Society of Mechanical Engineers (ASME) is
pleased to provide this testimony on the President's fiscal year 2005
budget for the National Aeronautics and Space Administration.
INTRODUCTION TO ASME AND THE AEROSPACE DIVISION
ASME is a nonprofit, worldwide engineering Society serving a
membership of 120,000. It conducts one of the world's largest technical
publishing operations, holds more than 30 technical conferences and 200
professional development courses each year, and sets many industrial
and manufacturing standards. The work of the Society is performed by
its member-elected Board of Governors through five Councils, 44 Boards,
and hundreds of committees operating in 13 regions throughout the
world.
The ASME Aerospace Division has approximately 15,000 members from
industry, academia and government. ASME members are involved in all
aspects of aeronautical and aerospace engineering at all levels of
responsibility. They have had a long-standing interest and expertise in
the Nation's federally funded aerospace research and development
activities at the National Aeronautics and Space Administration (NASA).
In this statement, the ASME Aerospace Division's Executive Committee
(herein referred to as ``the Committee'') will address programs that
are critical to the long-term health of the Nation's aerospace
enterprise.
NASA'S FISCAL YEAR 2005 BUDGET REQUEST
The Committee applauds the administration for its new space
exploration initiative. One of the greatest achievements of the United
States is its position of leadership in space technology, and NASA
guarantees the United States a competitive edge on the world's
technological stage. However, while this is potentially a great
endeavor, we must not neglect other aspects of NASA's responsibilities,
especially aeronautics.
While we are pleased with the administration's support for the
space program, we remain concerned about the relative lack of support
for the aeronautics research and technology (R&T) programs contained
within NASA's Office of Aeronautics. This is the portion of the NASA
budget that has the most immediate and practical benefit to the Nation,
and yet the administration proposes to reduce those programs by $115
million from the fiscal year 2004 appropriation of just over $1 billion
(even with fiscal year 2004 earmarks removed, this still represents a
reduction of $43 million or 4.5 percent).
We appreciate that Congress faces a trying budgetary climate this
year, but we urge you to not only fully fund NASA's fiscal year 2005
budget request, but to ensure adequate funding for aeronautics R&T. It
is the Committee's recommendation that the aeronautics portion of the
NASA budget be increased to $2 billion over the next 8 years, with a
long-term target of attaining a level of 10 percent of the total NASA
budget. Achieving this target would re-establish aeronautics funding,
as a percentage of the NASA budget, at its pre-1990 level. Strong
investments are required in fundamental engineering research in
aeronautics, so as to maintain core competency and produce the
technological advances needed to maintain U.S. long-term leadership.
There are also important and needed first steps being taken to
focus our Nation's aeronautics research in government, as well as
industry and academia, such as the formation of the Joint Planning and
Development Office to develop a national plan to transform the U.S. air
transportation system. Our concern is that these first steps come at a
time of decreasing budgets in aeronautics and that without the
investment to follow through on these first steps, nothing will happen.
AERONAUTICS RESEARCH AND TECHNOLOGY
The U.S. aeronautics enterprise is confronted with several critical
challenges--a sharp decrease in the number of new commercial and
military aircraft programs, a decline in the quality of the research
infrastructure, and erosion in the technologically literate workforce
needed to ensure pre-eminence in an increasingly competitive
marketplace. The issues are not unrelated, and all are driven by
dramatic reductions in Federal funding for research in aeronautics over
the past decade.
Infrastructure.--There is a need to refocus on the infrastructure
required to develop a new generation of advanced flight vehicles. In an
era of budget cuts and fewer defense contracts, the Nation has embarked
on a path where key wind tunnel and other ground test facilities are
being retired. Our Committee recommends a team of experts from
industry, government and academia be chartered to identify the
infrastructure requirements for a robust national aeronautical R&D
program aimed at developing a new generation of advanced aeronautical
vehicles. In parallel, funded R&D adequate to sustain or build this
infrastructure should be identified. The Nation should guard against a
loss of technical expertise in the critical field of wind tunnel
testing, a very real possibility in the current climate of attrition.
Workforce.--Aeronautics faces the same pressures being felt by the
space industries: fewer research dollars over time has resulted in
fewer companies with skilled workers capable of designing and building
complex aeronautical systems. An investment in aeronautics is a matter
of national welfare and strategic importance. These investments lead to
high paying jobs for American workers. For example, in the
manufacturing sector aerospace workers earn 50 percent more than the
sector average. Also, for every aerospace job created, two additional
jobs are created in the supplier base.
Aerospace companies have an aging workforce, a high percentage of
which will reach retirement age in this decade. Aerospace suffers from
a lack of available young workers with advanced technology degrees who
can step in to replace retiring, experienced workers. The aerospace
industry looks to NASA to create a demand for long-term R&T to
encourage students to go to graduate school and on to companies who are
doing aeronautical research.
Aeronautical Technologies Critical to U.S. Leadership.--Contrary to
perception, aeronautics is not a mature industry. Exciting new
opportunities exist for major advances in many areas of aeronautical
technology, including automated flight vehicles, ``fail-safe''
avionics, new platforms/configurations, efficient propulsion, ``quiet''
aircraft, enhanced safety, and ``zero'' emissions aircraft. The
Committee identified numerous technologies that are critical to the
long-term health of the Nation's civil and military aviation and
aeronautics technology enterprise including:
--Flight demonstrations (jointly funded by DOD and NASA) should be
sustained at an annual budget level sufficient to determine the
integrated performance of promising and dramatic new emerging
technology opportunities.
--Research into avionics systems and their applications should be
aggressively pursued because their use is pervasive and is
often critical to the success of advanced aircraft
developments.
--Research and development into Uninhabited Air Vehicles (UAVs)
should be given sustained support addressing issues of
reliability, maintainability and cost, so that the full
potential of these promising aircraft can be realized.
--Quieter, more environmentally friendly aircraft engines are not
only possible, but highly desirable over the near- and longer-
term. More distant, but intriguing, are the possibilities for
engines using alternative fuels, including hydrogen. A vigorous
pursuit of these technologies is likely to pay rich dividends
to the United States air transportation system and the national
economy.
--Research on new and more effective prediction methodologies are
sorely needed to meet the challenge of addressing the increased
complexity of design decisions. Computational Fluid Dynamics
(CFD) methods, for example, have evolved to the point of
achieving good correlation with test results, but are so
computer-time intensive as to be currently impractical for the
multiplicity of calculations needed for design of optimum
configurations.
--Methodologies that facilitate the development of cost-effective,
extraordinarily reliable software and systems for safety
critical operations should receive the strongest possible
support.
--Composite-Structures research is a critical enabling technology for
advanced aeronautical development, and should be vigorously
supported. In particular, new advances in manufacturing
techniques for large-scale composite structures are required to
promote the development of a new generation of aeronautical
vehicles.
--Significant new aerodynamics research is required in support of
innovative and promising applications ranging from micro UAVs,
to Vertical Takeoff and Landing (VTOL) regional transports to
Single Stage to Orbit (SSTO) launch vehicles and hypersonic
missiles.
--Essential simulation, ground, and flight-testing capabilities must
be preserved and new, more productive capabilities should be
developed--including physical infrastructure and personnel--so
that new generations of advanced aircraft can be designed
safely to be competitive in the world market.
--There is a continuing need for R&D into flight mechanics and
control for new, innovative configurations including un-piloted
aircraft. Research to minimize if not entirely eliminate the
impact of pilot and operator errors on flight safety should be
a primary focus.
We urge you to read our more detailed report on ``Persistent and
Critical Issues in the Nation's Aviation and Aeronautics Enterprise,''
prioritizing technologies critical to the long-term health of the
Nation's civil and military aviation and aeronautics technology
enterprise which is located on our website at http://www.asme.org/gric/
ps/2003/ASMEPolicyPaper.pdf
CONCLUSION
In conclusion, we applaud the proposed fiscal year 2005 NASA budget
request as the first step towards reinvigorating the Nation's space
policy. We urge Congress to continue its support for NASA's long-range
goals and to support real increases in the NASA Space and Aeronautics
budget. NASA's fiscal year 2005 budget is the start of many
opportunities and challenges and we hope that NASA's track record of
meeting and exceeding the Nation's expectations will be continued into
the 21st century.
______
Prepared Statement of the American Society of Mechanical Engineers
ENVIRONMENTAL ENGINEERING DIVISION
The Environmental Engineering Division (EED) of the Council of
Engineering, ASME, is pleased to have this opportunity to provide
written comments on the fiscal year 2005 budget request for the
Environmental Protection Agency (EPA).
INTRODUCTION
ASME is a 120,000-member professional organization focused on
technical, educational, and research issues of the engineering and
technology community. ASME conducts one of the world's largest
technical publishing operations, holds numerous technical conferences
worldwide, and offers hundreds of professional development courses each
year. ASME sets internationally recognized industrial and manufacturing
codes and standards that enhance public welfare and safety.
This testimony represents the considered judgment of the ASME
Environmental Engineering Division (EED), and does not represent a
position of ASME as a whole. The ASME EED promotes the art, science,
and practice of environmental engineering in all issues pertaining to
the environment. Its members are engaged in a broad range of
environmental engineering issues, including air, water, and waste
management.
BACKGROUND
Scientists and engineers have a long-standing professional interest
in research and technology to protect the environment and human health.
Mechanical engineers have a breadth of subspecialties, from combustion
and fluid mechanics to machine and process design and increasingly
collaborate with other professionals in the course of their work. The
opinions of the ASME EED reflect a diversity of opinions from ASME
members who represent many disciplines. Mechanical engineers working in
various subspecialties form a significant proportion of the technical
workforce tackling current environmental problems.
The EPA plays an essential role in the Nation's efforts to protect
human health and safeguard the natural environment. Protection of the
environment is defined as action that directly or indirectly protects
human health and the health of the larger ecosystem, and includes
conservation and pollution prevention. Accordingly, research and
development (R&D) in environmental protection includes studies
pertinent to environmental health, ecology, environmental monitoring,
environmental technology, pollution prevention, and related topics.
Given the impact that EPA has on the residents of the United States
it is encouraging to see that the administration has requested over
$100 million more for the agency in fiscal year 2005 than it did in the
previous fiscal year. We note, however, that within this larger budget,
the request for Science and Technology (S&T) shows a reduction of over
$42 million. That is a troubling decline, and incongruous with the
agency's stated goal ``to further strengthen the role of science in
decision-making by using sound scientific information and analysis to
help direct policy and establish priorities.'' With this reduction,
Science and Technology represents less than 9 percent of the requested
EPA appropriation.
The EPA fiscal year 2005 budget is organized to support five
strategic goals supported by a dedicated budget line titled ``Enhance
Science and Research.'' The resource request to support ``Enhance
Science and Research'' for each goal and the differences in requests
(in millions of dollars) between fiscal year 2004 and fiscal year 2005
are:
--Clean Air and Global Climate Change: $130.9; +2.8.
--Clean and Safe Water: $121.0;+0.5.
--Land Preservation and Restoration: $57.6;-2.3.
--Healthy Communities and Ecosystems: $394.8;-25.2.
--Compliance and Environmental Stewardship: $70.1;-7.1.
Thus the total budget request to ``Enhance Science and Research''
for the five strategic EPA goals represents a reduction of over $30
million when compared with funds allocated in the fiscal year 2004
appropriation.
The majority of the fiscal year 2005 S&T budget requested by EPA is
allocated to the Office of Research and Development (ORD). In fiscal
year 2005 this amounts to $572 million. Through research and technical
assistance, ORD provides the scientific foundation for EPA's regulatory
programs and decisions, assesses the state of the environment,
identifies emerging issues of potential concern, and provides
information and tools to support risk-based decisions. Hence the ORD
administers programs addressing foundational research to improve the
scientific tools used to understand and evaluate environmental health
and problem-driven research designed to provide scientific solutions to
high-priority environmental problems. It is a valuable national
resource.
The EPA budget documentation dwells more on attempts to ``prove''
the quality of ORD research than on describing the fruits of ORD work.
While it is essential to insure that Federal funds are used wisely and
efficiently, it is extremely difficult to demonstrate the worth of
research and development relying solely on current metrics. Often the
true value of such investments is only apparent years after the
investment is made. We hope that ORD is not overly diverted from its
true mission by constant calls to prove the unprovable. The Science
Advisory Board (SAB), a collection of eminent scientists that EPA has
assembled, should be relied upon to provide a quality metric.
ASME EED notes that many of this administration's most
controversial proposals (e.g., oil exploration in the Arctic, the
reduction of allowable arsenic groundwater concentrations, the non-
endorsement of the Kyoto Accords) have environmental dimensions. It is
critical to protect ORD from political forces so that its peer-reviewed
research results can be beyond political dispute.
Goal 1--Clean Air and Global Climate Change
The protection and rehabilitation of stratospheric ozone is one of
the singularly most important global environmental issues over the long
term. The budget for this aspect of the Clean Air and Global Climate
Change strategic goal would increase 14.4 percent from this year to
next. That is a very positive step in a year of flat overall funding.
Nonetheless, proposed fiscal year 2005 funding for this program is only
2.2 percent of the total budget for the Clean Air and Global Climate
Change goal. The level of funding belies the gravity of the problem it
addresses.
Goal 2--Clean and Safe Water
The stated goal of the safe water aspect of this strategic goal is
to ``restore and maintain oceans, watersheds, and their aquatic
ecosystems to [1] protect human health, [2] support economic and
recreational activities, and [3] provide healthy habitat for fish,
plants, and wildlife.'' While compelling arguments can be made for
making the protection of human health the agency's primary concern, it
is disconcerting that economic and recreational activities may hold a
higher priority than do those of native flora and fauna. Promotion of
economic and recreational interests is best left with other departments
within the government. The EPA should concentrate on its role as
environment steward.
Goal 3--Land Preservation and Restoration
An ounce of prevention is worth a pound of cure. Thirteen-point-two
percent ($237 million) of the Land Preservation and Restoration
strategic goal budget in fiscal year 2005 is devoted to preserving
land. While this amount is minor compared to the $1.5 billion (83.6
percent of the Land Preservation and Restoration budget) devoted to
land restoration, it is positive to see that the land preservation
portion of the budget has increased a healthy 12.4 percent from the
fiscal year 2004 level of $211 million. The better land is preserved in
the present, the lesser the land restoration bills will be in the
future. It is reassuring to see the foresight of pollution prevention
and land preservation becoming key aspects of EPA's approach to
preserving the environment.
Goal 4--Healthy Communities and Ecosystems
It appears in fiscal year 2005 a greater focus will be placed on
the ecosystems portion of the Healthy Communities and Ecosystems
strategic goal. The funding level for ecosystems increases by 25
percent to $201 million, compared to an increase in funding for
communities of only 0.2 percent. This level is still only 63 percent of
the funding for communities, but is a big step towards more equitable
funding between the two aspects of this strategic goal. The long-term
benefits of environmental health enhance human communities as well as
the natural world.
As with the 3.8 percent decline in science and research under the
Land Preservation and Restoration goal, the 6.0 percent decline in
Science and Research for Healthy Communities and Ecosystems from fiscal
year 2004 to fiscal year 2005 is a harbinger of future problems.
Tomorrow's solutions are found in today's research and development.
Delaying the discovery and implementation of new, novel approaches to
environmental management only increase their cost and the environmental
losses incurred in the interim.
Goal 5--Compliance and Environmental Stewardship
The budget for Pollution Prevention and Innovation would grow by
22.6 percent from fiscal year 2004 to fiscal year 2005. That budget
shift indicates a commitment to the concept that ``pollution prevention
has become a key element of initiatives to improve federal
environmental management.'' Further, it supports EPA's stated plan to
``work to improve environmental protection and enhance natural resource
conservation on the part of the government, business, and the public
through the adoption of pollution prevention and sustainable practices
. . .''. The EED fully supports the pursuit of this philosophy in
environmental stewardship. Resource and energy conservation, combined
with resource recycling, are critical to reducing the future costs of
environmental remediation and resource recovery.
CROSS-CUTTING ISSUES
Scientific Understanding and Risk Analysis
The ASME EED notes that EPA continually refers to the need to base
agency actions on ``sound science.'' We believe that the EPA's risk-
based approach, which engages all interested parties (i.e.,
``stakeholders''), provides a good framework for the formulation of
environmental policies. The EED supports EPA's continuing effort to
implement a research program that is aimed at expanding the role, and
improving the state-of-the-art of environmental science as it pertains
to decision-making and policy formulation.
The ASME EED supports the goal of applying ``the best science'' to
the Nation's environmental problems but we note that many of the
Nation's problems involve potential risks to the public and the
environment from low levels of hazardous materials. In these instances,
the scientific basis for decision making is highly uncertain since the
health impacts of exposure to low levels of hazardous substances is
largely unknown. The EED supports increased research in this area and
notes that EPA has requested a large increase in research funding in
the area of computational toxicology (+$4 million), which should help
increase the understanding of the impact of low dose exposures. In the
absence of definitive knowledge of the biological responses to low
doses of hazardous materials, the ASME EED feels it important that EPA
acknowledge the uncertainty in its risk estimates whenever
communicating risk to the public.
Interactions with Other Federal Agencies
In the absence of definitive scientific data about the risks posed
by small amounts of hazardous materials, EED believes that EPA must
insure that corrective measures to eliminate exposure to small
quantities of such materials do not themselves generate greater risks.
We therefore recommend that EPA coordinate its activities with other
Federal agencies to develop an integrated policy that minimizes the
total risk to all parties, particularly workers. This policy must
consider environmental risks to the public and to ecosystems, along
with occupational risks and risks to the public due to remediation
activities. It would be folly to expose workers and the public to real
risks while attempting to reduce hypothetical risks to the public and
the environment.
Oversight of DOE and WIPP
One of EPA's major radiation-related responsibilities is to certify
that all radioactive wastes shipped by the Department of Energy (DOE)
to the Waste Isolation Pilot Plant (WIPP) are permanently and safely
disposed of, consistent with EPA standards. EPA conducts inspections of
waste generator facilities and biennially evaluates DOE's compliance
with applicable environmental laws and regulations. Every 5 years EPA
must re-certify that WIPP complies with EPA's radioactive waste
disposal regulations.
The budget for EPA's oversight of WIPP falls within the protection
section of its radiation program. The President's request for fiscal
year 2005 for radiation protection reflects a decrease of approximately
$1.8 million. The reduction derives from higher priorities within EPA's
budget. It is not possible to determine from the published documents
what fraction of the budget reduction EPA's WIPP Program within the
Office or Radiation and Indoor Air will absorb. However, several
comments can be made regarding the budget proposal:
--No mention is made of the ongoing compliance recertification
effort. The level of effort required to review the application
for recertification, accept public comment, obtain and review
additional documentation from DOE, and make a compliance
decision will be significant. As the Nation's only operational,
certified repository for permanent disposal of radioactive
waste, WIPP comprises a key to cleanup of DOE's weapons
complex.
--Performance measures for EPA's involvement at WIPP pertain solely
to certification of a specified number of drums for disposal.
Certainly this measure represents an important role for EPA.
However, the EPA's decision to certify WIPP also included four
conditions requiring continued oversight from EPA, a long-term
groundwater-monitoring program, and ongoing review of changes
to WIPP's operations. One of the conditions imposed by EPA on
its certification of WIPP was construction of panel closure
systems. Review of documents by an independent oversight group
(the Environmental Evaluation Group) documents that DOE intends
to request a revision to the certified panel closure design.
This would represent a significant change to the EPA compliance
baseline for WIPP.
These topics suggest that additional performance measures specific
to conditions of the certification and the long-term monitoring program
should be added to EPA's performance measures. These performance
measures would serve to enhance public confidence in the facility. By
contrast, the proposed performance measure reflects a desire to meet
DOE's need to ship waste from its clean-up sites. Given how central a
viable WIPP is to DOE's cleanup plans, EPA should carefully weigh the
impact of budget reductions that support WIPP.
ENVIRONMENTAL EDUCATION/STRENGTHENING THE S&T BASE
Extramural research grants and graduate fellowships administered by
the EPA would be severely cut under the President's proposed budget
request for fiscal year 2005. EPA's Science to Achieve Results (STAR)
graduate fellowship program would be cut by 33.5 percent relative to
the fiscal year 2004 appropriation. EPA's larger STAR research grants
program would be cut by approximately 30 percent, or $36 million.
Approximately 93 fewer STAR research grants would be awarded, according
to EPA's budget justification to Congress. Deep budget cuts in EPA's
STAR programs have been proposed less than 1 year after the National
Academy of Sciences (NAS) issued a laudatory report entitled The
Measure of STAR.
The STAR fellowship program is the only Federal fellowship program
designed exclusively for students pursuing advanced degrees in the
environmental sciences and engineering. It provides funding for
graduate students interested in the solution of environmental problems
and allows them to undertake research in areas directly relevant to
EPA's mission and objectives. It is the opinion of the EED that the
STAR fellowship program is an important investment in the future of
both EPA and the Nation. The EED fully supports this program.
In fiscal year 2005, EPA will also support Association of Schools
of Public Health (ASPH) fellowships. This investment will help EPA to
better design its programs for human health outcomes. Under a
cooperative agreement with the ASPH, eligible fellows are placed in EPA
labs, centers, and offices to conduct projects that contribute to EPA's
public health mission. EED supports this program and suggests that it
be a model for additional fellowships in ancillary areas, particularly
in occupational health.
The research portion of the Federal budget is the largest share of
support for U.S. graduate students in fundamental science and
engineering disciplines, through both fellowships and research grants
to universities. In areas such as environmental science and national
defense, a broad view across agencies, rather than a programmatic view,
is necessary to ensure sufficient graduates and continuing quality in
graduate programs. The EED encourages lawmakers to consider not only
current programmatic needs, but also future national needs, when
determining the number of graduate students to be funded by Federal
programs, particularly in science and engineering disciplines. A highly
trained workforce is vital to ensuring future success in resolving
national science, security, and technology issues.
CONCLUSIONS
EPA's budget decisions for fiscal year 2005 indicate a
philosophical commitment to pollution prevention and ecosystem
preservation that the EED supports. Conversely, the marked decrease in
funding for science and technology in fiscal year 2005 is disturbing.
Because of the complex, multidisciplinary nature of environmental
issues, it is imperative that EPA base its actions on sound science. A
strong R&D program is essential for the ongoing development of science-
based decision making. Reduced R&D funding will hurt the science and
engineering community in the present and will, in the future, only
cause larger, more expensive environmental problems for society at
large.
______
Prepared Statement of the National Utility Contractors Association
Chairman Bond, and distinguished members of the subcommittee, thank
you for the opportunity to provide testimony to your committee on
issues involving water and sewer infrastructure funding.
My name is Bill Bowman and I am the President of the National
Utility Contractors Association (NUCA), which represents thousands of
companies that provide the materials and workforce to build and
maintain our Nation's network of water, sewer, gas, telecommunications,
and other utility systems. I am also the Chairman of the Board of the
Bowman Group, located in West Berlin, New Jersey, a company I founded
more than 30 years ago with a handful of men, a backhoe, a dump truck,
and a small loan. Today my company builds and maintains water, sewer,
and other underground utility systems in and around Southern New Jersey
and Southeastern Pennsylvania.
Let me begin by thanking the committee for its consideration and
insistence in maintaining level funding for the Clean Water and
Drinking Water State Revolving Fund (SRF) programs despite what have
become yearly cuts proposed by the White House budget. This
subcommittee's efforts to support the SRF programs have benefited
millions of Americans. I know this because I see it every day I go to
work.
I want to voice my industry's strong support for the U.S.
Environmental Protection Agency's (EPA) Clean Water and Drinking Water
SRF programs. Simply put, these essential financial programs clean up
the environment, protect public health, promote economic development,
and create thousands of jobs. Why then, does the administration
continually propose to cut the Clean Water SRF by 40 percent when its
own EPA reports that existing needs exceed $181 billion? We cannot help
but notice the contradiction between the EPA's needs estimates and the
President's proposed solution.
Utility contractors have been called the ``true environmentalists''
because we are the ones getting our boots dirty installing and
repairing the infrastructure that help make our lakes and rivers safe
for public use. And while I understand that your committee is under
tremendous pressure to keep Federal spending in check, I urge you to
boost the Federal capitalization of these funds because not only do
they enhance our Nation's quality of life, but they help create
thousands of good paying jobs right in our own backyards. These are
jobs that cannot be exported--this work must be performed in America.
THE NEEDS
As the committee is well aware, last year the EPA released The
Clean Watersheds Needs Survey (CWNS) 2000 Report to Congress, which
painted a bleak picture of America's wastewater infrastructure. The
CWNS documents State-by-State wastewater infrastructure needs and
clearly demonstrates that the condition of our Nation's wastewater
infrastructure is going from bad to worse. The CWNS presents the
results of a survey of wastewater infrastructure needs conducted
between April 2000 and January 2002, detailing a total need of $181.2
billion for publicly-owned wastewater collections, treatment facilities
and eligible activities to control pollution from storm water and
nonpoint sources. This figure represents an increase of $26.6 billion
from the amount reported in the 1996 CWNS. It is important to note that
previous CWNS reported 20-year modeled needs but that the 2000 CWNS
represents documented needs. In other words, the 2000 CWNS provides a
snapshot of what is needed today, not projected over 20 years. This
change in study methods ``hides'' the true increase because the results
compare 20-year modeled needs from 1996 against 5-year current
documented needs from 2000. If the CWNS projected out 20 years, the
number would be exponentially higher.
As the committee is well aware, in 2002, the EPA's Clean Water and
Drinking Water Infrastructure Gap Analysis forecasted a $534 billion
gap between current spending and projected needs over 20 years for
water and wastewater infrastructure if Federal funding is not
increased. To someone in our industry, this is a distressing report
that in my experience, forecasts an environmental disaster. Even a
modest 3 percent annual growth in water infrastructure spending will
project to a $76 billion funding gap over the next 20 years. As a point
of fact, funding for the Clean Water and Drinking Water SRF programs
has remained stagnant since 1997. This analysis shows that we are not
doing enough to tackle this problem.
The SRF programs are not examples of throwing good money after bad.
States are making progress in repairing their infrastructure. But the
infrastructure is failing at a rate that exceeds what the SRFs can
currently handle.
As bad as the water infrastructure problems are across America,
this committee is uniquely positioned to make a change for the better.
The Gap Analysis clearly shows that a modest increase in Federal
capitalization grants will limit the funding gap and assist States in
addressing their water infrastructure problems.
PROBLEMS HIT CLOSE TO HOME
As representatives of NUCA before me have testified, aging
wastewater infrastructure is failing in every State. Each year, sewers
back up in basements 400,000 times and municipal sanitary sewers
overflow on 40,000 occasions, dumping potentially deadly pathogens into
the Nation's streets, waterways, and beaches. Water and sewer systems
built generations ago that had projected use periods of 30, 50, and
even 100 years are all reaching their useful life concurrently. Scores
of American cities are under consent decrees with the EPA to fix their
combined sewer overflow problems or face millions of dollars in fines.
You need not look any further than right here in Washington, DC, where
we are witnessing a health crisis caused by aging drinking water
infrastructure resulting in dangerously high lead levels.
Sometimes it takes the intense media scrutiny during a crisis, like
the lead problems in the District of Columbia, to get people to notice
water infrastructure problems. In my business, I see firsthand these
problems every day. What's out of sight and out of mind to most
Americans is clearly visible to utility contractors. We regularly
uncover pipes with gaping holes from which raw sewage escapes into the
surrounding ground in residential neighborhoods. This leakage can go
undetected for months, if not years. My colleagues can tell stories of
finding infrastructure so old that the pipes are made out of hollowed
tree trunks. To make matters worse, these systems are often within very
close proximity to lakes and rivers where we swim, fish, and play.
Conditions grow substantially worse every day. We are knowingly
failing to refurbish and install vital wastewater infrastructure in a
meaningful way that maintains public safety, even though we have the
capability to fix the rotting pipes. It's time we do so before we
irreversibly contaminate our water supply, before sewer moratoriums
shut down our communities, and before your constituents' sewer rates go
through the roof.
The scenario is becoming increasingly clear: water and wastewater
infrastructure needs are constantly on the rise while Federal capital
investment is being sustained but is no longer sufficient. While
inadequate Federal capitalization is provided every year, the existing
infrastructure continues to age. Incidents of sewer overflows will
continue to rise as the declining investment fails to keep up with the
aging pipes. This financial gap will only get worse unless a firm
commitment is made and increased Federal resources are provided to
needy communities.
Moreover, the current lack of adequate funding unintentionally
widens the investment gap by sending the implicit message that our
Nation's environmental infrastructure is not a national priority.
EFFECTIVENESS OF THE STATE REVOLVING FUND PROGRAMS
The EPA's SRF programs help ensure the quality of America's
wastewater and drinking water facilities. Funding from the SRF programs
provide urgently needed resources for communities across the country to
address their water and wastewater infrastructure problems.
Revolving fund programs work in perpetuity. The Clean Water SRF,
for example, has leveraged approximately $22.4 billion in Federal
grants into more than $43 billion in revolving loans to communities.
These loans are then repaid at low interest and redistributed for other
priority wastewater projects within the State. The Drinking Water SRF
has provided more than $6.5 billion to communities for drinking water
projects and State and local activities. These projects are needed to
maintain compliance with health-based standards, such as installation
and replacement of failing treatment and distribution systems. The SRF
programs have been hailed as the most successful federally sponsored
infrastructure financing program ever.
As you know, the Clean Water SRF program originated in 1987, but
authorization lapsed in 1994. Again, I want to commend this
subcommittee for recognizing the effectiveness of the Clean Water SRF
by continuing to appropriate funding to the program. When authorization
expired in 1994, appropriations were just over $2 billion. That funding
level dropped in 1998 to $1.35 billion, where it has remained.
Unfortunately, this level is woefully inadequate. Immediate funding
increases must be provided to begin to close the funding gap.
The administration's budget request again proposes an appalling
$850 million for each SRF program. While this would represent level
funding for next year's drinking water projects, the proposal reflects
what would be a $500 million cut to the Clean Water SRF.
NUCA respectfully suggests there is a stark contradiction in the
administration's estimation of what is needed and what should be
provided to begin to address the problem. Six months after reporting
needs that exceed $181 billion, this administration proposes what would
reflect nearly a 40 percent reduction of an already inadequate funding
level. These programs need immediate increases, not cuts.
The Clean Water SRF provides a perpetual source of funding to build
and improve wastewater treatment plants; control agricultural, rural,
and urban runoff; improve estuaries; control wet weather overflows; and
restore brownfield sites. Recognizing its remarkable success in turning
Federal capitalization grants into revolving loans, the SRF program is
by all accounts an efficient, fiscally sound, and environmentally
successful partnership that enhances public health, creates thousands
of jobs, and improves the quality of life for communities across
America.
Nearly a decade ago, our industry commissioned a report that found
that for every $1 billion spent on water infrastructure, up to 55,000
jobs are created across the country. As our economy struggles to grow,
it is important to note how quick and easy it is to create good, long-
term construction jobs. In most States, due to advance planning and
engineering work, a backlog of projects are ready to start once money
arrives from the Federal Government.
Our industry has worked to move legislation that will reauthorize
the Clean Water SRF program at higher funding levels in order to better
ensure the appropriation of these imperative Federal resources. Water
Resources Subcommittee Chairman John Duncan and Transportation and
Infrastructure Committee Chairman Don Young introduced the Water
Quality Financing Act of 2003 (HR 1560) last year, which would
authorize $20 billion for the Clean Water SRF over 5 years and
additional resources for ``wet weather'' projects.
NUCA fully supports HR 1560, and we look forward to advancing this
legislation through the committee onto the House floor for a vote.
However, while SRF reauthorization is a priority, we encourage the VA-
HUD Appropriations Subcommittee to take the necessary steps to provide
immediate resources to refurbish our environmental infrastructure.
Recently, the Senate passed an amendment during debate on the
fiscal year 2005 Budget Resolution that increased fiscal year 2005
funding for the Clean Water and Safe Drinking Water State Revolving
Fund to $5.2 billion. NUCA is recommending that the subcommittee
recognize the dramatic needs and the job creation that comes with
infrastructure spending and match the amount set forth in this
amendment--$3.2 billion for the Clean Water and $2 billion for the Safe
Drinking Water State Revolving Funds.
The House budget resolution did not include these necessary
increases in funding for this vital infrastructure. NUCA encourages
this subcommittee to enact the Senate's approved budget blueprint for
fiscal year 2005 appropriations to the SRF programs. In fact, a diverse
coalition of industry groups that includes administrators, labor
unions, environmental groups, and manufacturers and NUCA has joined
forces to support the Senate passed budget authorization in the final
budget conference. These groups rarely work together but this issue
trumps any differences they may have. Attached to this testimony is a
copy of their letter sent to fiscal year 2005 budget conferees. Also
attached is a letter from the Clean Water Council, a coalition of
construction industry associations, in support of the Senate funding
levels.
The fate of America's water quality is in your hands. The
successful SRF programs play a key role in enhancing public health and
safety, protecting the environment, and maintaining a strong economic
base. They increase labor productivity, create scores of jobs,
rehabilitate local neighborhoods, and ensure the availability of
recreational use of our waterways and shorelines. They help protect the
overall quality of life, from preparing a meal, to taking a shower, to
simply taking a drink of water on a hot day.
People intuitively understand that their lives are directly linked
to water quality and the collection and treatment of wastewater. The
State revolving funds have been demonstrably efficient and effective,
but clearly, more needs to be done. Sufficient Federal resources must
be invested to ensure that human and environmental impacts of the
multi-billion dollar funding gap are prevented. Providing $5.2 billion
towards our environmental infrastructure would be a big step in the
right direction.
This year, Congress is reauthorizing Federal highway and transit
programs. While important, NUCA hopes the focus on the highway bill
will not undermine Congress' recognition of the need to address the
imperative lifelines that exist underneath the roads. The underground
environmental infrastructure is falling apart by the minute.
Finally, NUCA members and utility construction industry as a whole
make a tremendous and vital contribution to the American economy. In
times of economic difficulty, funding construction projects provide
effective ways to stimulate growth and development. Economic benefits
ripple through local economies from manufactures to distributors to
construction laborers, along with the induced economic benefits to our
communities. Infrastructure spending is a sound Federal investment.
We strongly encourage this subcommittee to increase funding of
EPA's SRF programs to $5.2 billion in fiscal year 2005. Again, thank
you Chairman Bond and Ranking Member Mikulski, for the opportunity to
present testimony before your esteemed panel.
ATTACHMENT.--AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL
EMPLOYEES; AMERICAN RIVERS; ASSOCIATION OF METROPOLITAN SEWERAGE
AGENCIES; ASSOCIATION OF STATE AND INTERSTATE WATER POLLUTION CONTROL
ADMINISTRATORS; COALITION FOR ALTERNATIVE WASTEWATER TREATMENT; NATURAL
RESOURCES DEFENSE COUNCIL; NATIONAL UTILITY CONTRACTORS ASSOCIATION;
WATER AND WASTEWATER EQUIPMENT MANUFACTURERS ASSOCIATION; WATER
ENVIRONMENT FEDERATION
The diverse organizations above represent municipal authorities,
operators of water and wastewater facilities, State water regulators
and financial officers, labor organizations, contractors,
manufacturers, and environmental groups dedicated to improving
America's water and wastewater infrastructure. We write on behalf of
our millions of members who urge you to protect human health and the
environment and create hundreds of thousands of jobs by increasing the
budget authority for the Environmental Protection Agency's (EPA) Clean
Water and Drinking Water State Revolving Fund (SRF) programs to $5.2
billion in fiscal year 2005, as provided in the Senate budget
resolution. The SRF programs help local communities meet water quality
standards, protect public health, repair and replace old and decaying
pipelines and treatment plants, and ensure continued progress in
restoring the health and safety of America's water bodies. Authorizing
$3.2 billion for the Clean Water SRF and $2 billion for the Drinking
Water SRF next year would provide a badly-needed down payment to
improve America's water and wastewater infrastructure.
Budget authority in the Senate budget resolution would create
nearly 247,000 American jobs--three times the job creation that would
come from the House budget resolution. This would aid the national
economic recovery by keeping good paying jobs in local communities.
Moreover, it is estimated that there are projects valued at between
$3.2 billion and $4.1 billion that are ready to move forward in less
than 90 days. This would create considerable jobs in the near future.
In 2002, EPA's Clean Water and Drinking Water Infrastructure Gap
Analysis found that there will be a $534 billion gap between current
spending and projected needs for water and wastewater infrastructure if
the Federal investment is not stepped up. Moreover, last year EPA
issued its Clean Watersheds Needs Survey 2000 Report to Congress, which
documented existing wastewater infrastructure needs at more than $181
billion. There is no doubt of the need for increased resources toward
this vital infrastructure.
When the Clean Water Act was passed more than 30 years ago, the
Federal Government made a commitment to the American people to clean up
the Nation's waters. Since that time the Federal Government's funding
to maintain clean water infrastructure in America has decreased by 70
percent; today the Federal Government funds a mere 5 percent of
national infrastructure costs. In 1996, the Safe Drinking Water Act
expanded the Federal Government's role in assuring clean water for
every citizen. Much has been accomplished but there is much left to be
done. States, localities, and private sources addressing these problems
cannot do it alone.
We support this substantial increase in water infrastructure
funding next year because it takes a step toward a longer-term solution
for our Nation's water needs. We again urge you to support a $5.2
billion allocation for the Clean Water and Drinking Water SRFs programs
in the final Budget Resolution, and we thank you for your
consideration.
ATTACHMENT.--THE CLEAN WATER COUNCIL
The Clean Water Council (CWC) is a coalition of underground
construction contractors, design professionals, manufacturers and
suppliers, and other professionals committed to ensuring a high quality
of life through sound environmental infrastructure. The CWC strongly
urges you to increase budget authority for the Environmental Protection
Agency's (EPA) Clean Water and Drinking Water State Revolving Fund
(SRF) programs to $5.2 billion in fiscal year 2005, as provided in the
Senate budget resolution. This funding level will provide a badly-
needed down payment to improve America's water and wastewater
infrastructure.
Unfortunately, the administration's budget has again proposed a
$500 million cut in funding for the Clean Water SRF at a time when the
Nation's wastewater infrastructure needs are skyrocketing. In 2002,
EPA's Clean Water and Drinking Water Infrastructure Gap Analysis found
that there will be a $534 billion gap between current spending and
projected needs for water and wastewater infrastructure if the Federal
investment is not stepped up. Moreover, last year EPA issued its Clean
Watersheds Needs Survey 2000 Report to Congress, which documented
existing wastewater infrastructure needs at more than $181 billion. The
CWC believes it is contradictory for the administration to propose what
would be close to a 40 percent reduction in funding for clean water
projects when its own agency studies have shown an overwhelming gap
between the needs and current spending and provided a snapshot of
current needs that are approaching $200 billion. America's water and
wastewater infrastructure needs immediate funding increases, not cuts.
The SRF programs provide a perpetual source of funding to build and
improve this vital infrastructure, but the SRFs do more than clean up
our environment. Funding the SRF programs at this level would create at
least 238,000 American jobs. It is estimated that there are projects
valued at between $3.2 billion to $4.1 billion that are ready to move
forward in less than 90 days that are stalled due to the lack of
funding. Importantly, the ``revolving'' nature of the SRF makes the
program a fiscally sound partnership. For example, since its inception
in 1987, the Clean Water SRF has leveraged approximately $22 billion in
Federal capitalization grants into more than $44 billion in revolving
loans to local communities.
The Senate budget resolution would provide $3.2 billion for the
Clean Waster SRF and $2 billion for the Drinking Water SRF next year.
The CWC understands that these are substantial funding increases but we
believe they are justified and necessary. These funding levels will
help secure our water and wastewater infrastructure while assisting the
Nation's economic recovery by providing high paying jobs in local
communities right here in America. The CWC requests that you support a
$5.2 billion in budget authority for the Clean Water and Drinking Water
SRF programs in the final budget resolution.
Members of the Clean Water Council
American Council of Engineering Companies; American Concrete
Pressure Pipe Association; American Rental Association; American Road &
Transportation Builders Association; American Society of Civil
Engineers; American Subcontractors Association; Associated Equipment
Distributors; Associated General Contractors; Association of Equipment
Manufacturers; Construction Management Association of America; National
Precast Concrete Association; National Ready Mixed Concrete
Association; National Society of Professional Engineers; National
Stone, Sand and Gravel Association; National Utility Contractors
Association; Portland Cement Association; The Vinyl Institute; Uni-Bell
PVC Pipe Association; Water and Wastewater Equipment Manufacturers
Association.
______
Prepared Statement of the National Council for Science and the
Environment
SUMMARY
The National Council for Science and the Environment (NCSE)
commends the Senate Appropriations Subcommittee on VA, HUD and
Independent Agencies for its bipartisan leadership in support of
science to improve environmental decision-making. We ask for your
continued leadership by appropriating strong and growing funding for
environmental research and education to address pressing national
challenges.
Environmental Protection Agency.--We urge Congress to reject
drastic budget cuts proposed for competitive research grants and
graduate fellowships administered by the Environmental Protection
Agency's Science to Achieve Results (STAR) program. The fiscal year
2005 budget request would cut the STAR research grants program by
approximately 30 percent to $65 million in the fiscal year 2005 budget
request. It would also cut the STAR graduate fellowship program by 33.5
percent to $6.1 million in the fiscal year 2005 budget request. We ask
Congress to appropriate at least $100 million for the STAR research
grants program and at least $10 million for the STAR graduate
fellowship program in fiscal year 2005.
National Science Foundation.--NCSE recommends a 15 percent increase
in funding for the National Science Foundation (NSF), bringing the
agency's budget to $6.41 billion in fiscal year 2005. This is
consistent with the National Science Foundation Authorization Act of
2002 (Public Law 107-368), which authorizes a doubling of the NSF
budget in 5 years. NCSE emphasizes the need for increased funding for
NSF's Environmental Research and Education (ERE) portfolio. Although
the National Science Board identified this area as one of NSF's
``highest priorities,'' funding for the ERE research portfolio would
decrease by 0.2 percent to $930.2 million under the fiscal year 2005
budget request. Moreover, funding for the priority area on
Biocomplexity in the Environment--the flagship program of the ERE
portfolio--would be flat at $99.8 million in fiscal year 2005. NCSE
urges Congress to increase funding for NSF's Environmental Research and
Education portfolio by at least the same percentage as the agency's
overall growth rate.
National Science Board Report.--NCSE encourages Congress to
strongly support full and effective implementation of the National
Science Board (NSB) report, Environmental Science and Engineering for
the 21st Century, within the context of efforts to double the budget of
the National Science Foundation. The lagging growth of the NSF
Environmental Research and Education budget relative to the total NSF
budget in recent years raises serious concerns about its status of one
the agency's ``highest priorities.''
FEDERAL INVESTMENTS IN ENVIRONMENTAL R&D
The National Council for Science and the Environment thanks the
Senate Appropriations Subcommittee on VA, HUD, and Independent Agencies
for the opportunity to testify before the panel in support of
appropriations for the Environmental Protection Agency and the National
Science Foundation.
NCSE is dedicated to improving the scientific basis for
environmental decision-making. We are supported by over 500
organizations, including universities, scientific societies, government
associations, businesses and chambers of commerce, and environmental
and other civic organizations. NCSE promotes science and its
relationship with decision-making but does not take positions on
environmental issues themselves.
Federal investments in R&D and science education are essential to
the future well-being and prosperity of the Nation and deserve the
highest priority of Congress. The long-term prosperity of the Nation
and our quality of life are contingent upon a steady commitment of
Federal resources to science and technology, and especially
environmental R&D.
The Appropriations Subcommittee on VA, HUD and Independent Agencies
plays the largest role in setting funding levels for environmental R&D.
It has jurisdiction over agencies that account for approximately 45
percent of Federal funding for environmental R&D. Federal investments
in environmental R&D must keep pace with the growing need to improve
the scientific basis for environmental decision-making. In recent
years, Congress has played a crucial role by supporting strong and
growing Federal investments in environmental R&D. We appreciate the
subcommittee's leadership and encourage its continued support in this
difficult fiscal environment.
EPA STAR PROGRAMS
Extramural research grants and graduate fellowship programs
administered by the U.S. Environmental Protection Agency would be
severely cut under the President's budget request for fiscal year 2005.
Funding for EPA's Science to Achieve Results (STAR) research grants
program would be cut by approximately 30 percent, from an estimated $92
million in the fiscal year 2004 enacted appropriations bill to $65
million in the fiscal year 2005 budget request. As a result of these
cuts, approximately 93 fewer competitive research grants would be
awarded to scientists at universities and nonprofit institutions across
the Nation, according to EPA's budget justification to Congress.
Funding for EPA's STAR graduate fellowship program--the only Federal
program aimed specifically at students pursuing advanced degrees in
environmental sciences--would be cut by 33.5 percent, from $9.17
million in the fiscal year 2004 enacted appropriations bill to $6.1
million in the fiscal year 2005 budget request. The National Council
for Science and the Environment urges Congress to restore full funding
for EPA's Science to Achieve Results (STAR) research grants and
graduate fellowship programs.
Rep. Vernon Ehlers, Chairman of the House Science Subcommittee on
Environment, Technology and Standards, convened a hearing on March 11,
2004 that examined the proposed cuts in EPA's STAR programs. At the
conclusion of the hearing, he said, ``I have not heard a convincing
reason today for why the STAR program was cut so dramatically. By all
accounts, it is a well-run, competitive, peer reviewed program that
produces high quality research. These proposed reductions should not be
allowed to take effect.''
EPA STAR Research Grants.--NCSE urges Congress to appropriate at
least $100 million for the STAR Research Grants program in fiscal year
2005. This is the funding level proposed in the President's budget
request for fiscal year 2004. Deep budget cuts in EPA's STAR program
have been proposed less than 1 year after the National Academies issued
a laudatory report, The Measure of STAR, which concludes that the
program supports excellent science that is directly relevant to the
agency's mission. According to the report, the STAR program has
``yielded significant new findings and knowledge critical for
regulatory decision making.'' The report says, ``The program has
established and maintains a high degree of scientific excellence.'' It
also concludes that the EPA STAR program complements research supported
by other agencies and leverages its resources through partnerships,
stating ``The STAR program funds important research that is not
conducted or funded by other agencies. The STAR program has also made
commendable efforts to leverage funds through establishment of research
partnerships with other agencies and organizations.''
The EPA STAR research program compares favorably with programs at
other science agencies. According to the National Academies report,
``The STAR program has developed a grant-award process that compares
favorably with and in some ways exceeds that in place at other agencies
that have extramural research programs, such as the National Science
Foundation and the National Institute of Environmental Health
Sciences.''
The STAR research grants program expands the scientific expertise
available to EPA by awarding competitive grants to universities and
independent institutions, to investigate scientific questions of
particular relevance to the agency's mission. The National Academies
report says, ``The STAR program should continue to be an important part
of EPA's research program.'' According to the fiscal year 2005 budget
request, funding for the following STAR grants would be cut.
--Ecosystems Protection (-$22.2 million).--Approximately 50 STAR
grants for research on ecosystem stressors and effects would be
eliminated. According to the agency's budget documents, ``As a
result of this reduction, STAR efforts designed to establish or
improve the connection between ecosystem stressors and effects,
serving as input to decisions at the regional, state, and local
levels, will be discontinued.''
--Pollution Prevention (-$5 million).--Over 20 research grants would
not be funded under the Technology for the Sustainable
Environment (TSE) program, which is a collaborative effort with
the National Science Foundation.
--Endocrine Disruptors (-$4.9 million).--Approximately 18 STAR
research grants for research on endocrine disrupting chemicals
would be eliminated.
--Mercury Research (-$2 million).--The approximately 5 STAR grants
that support mercury research would be eliminated.
--Hazardous Substance Research Centers (-$2.3 million).--A 5-year
program that awarded grants for hazardous substance research
would not be funded in fiscal year 2005. According to EPA, some
multi-year grants would not be funded in their final year due
to this cut.
--Homeland Security Building Decontamination Research (-$8.3
million).--Research on building decontamination for homeland
security would be completely eliminated.
--Environmental Technology Verification (-$1.0 million).--One or two
centers for testing the effectiveness of commercial
environmental technologies would be closed.
EPA STAR Graduate Fellowships.--NCSE urges Congress to appropriate
at least $10 million for the STAR graduate fellowship program in fiscal
year 2005. This is the only Federal program aimed specifically at
students pursuing advanced degrees in environmental sciences. According
to the National Academies report, ``The STAR fellowship program is a
valuable mechanism for enabling a continuing supply of graduate
students in environmental sciences and engineering to help build a
stronger scientific foundation for the nation's environmental research
and management efforts.'' The STAR fellowship program is highly
competitive, with only 7 percent of applicants being awarded
fellowships.
The President's budget request has proposed deep cuts in the STAR
graduate fellowship program in the past 2 years. The budget request
would have cut funding for the STAR graduate fellowship program by 50
percent in fiscal year 2004 and by 100 percent in fiscal year 2003.
Under the leadership of this subcommittee, Congress restored full
funding for the EPA STAR graduate fellowship program in both years.
NCSE encourages Congress to restore full funding for the program again
in fiscal year 2005.
Science, Technology and Education at EPA.--EPA's overall Science
and Technology account faces serious reductions in the President's
fiscal year 2005 budget request. This account would be cut by 11.8
percent to $689.2 million in fiscal year 2005. We encourage Congress to
provide at least $790 million to fund this important function at EPA.
The fiscal year 2005 budget request proposes no funding for the EPA
Office of Environmental Education. NCSE strongly encourages Congress to
restore full funding of at least $10 million to support the
congressionally mandated programs administered by this office. These
programs provide national leadership for environmental education at the
local, State, national and international levels, encourage careers
related to the environment, and leverage non-Federal investment in
environmental education and training programs.
NATIONAL SCIENCE FOUNDATION
Implementing the NSF Doubling Act.--The National Council for
Science and the Environment urges Congress to appropriate the funds
necessary to implement the National Science Foundation Authorization
Act of 2002, which was passed by Congress on November 15, 2002 and
signed into law by the President on December 19, 2002 (Public Law 107-
368). A central goal of the Act is to double the budget of the National
Science Foundation in 5 years. It authorizes a budget increase of 105
percent for the NSF, from $4.8 billion in fiscal year 2002 to $9.8
billion in fiscal year 2007. The NSF Authorization Act of 2002 is a
major milestone for the NSF, the scientific community, and the Nation.
It recognizes the critical connection between science and the long-term
economic strength of the Nation. In order to achieve the outcomes
envisioned by this bold legislation, Congress must appropriate the
funding levels specified in the NSF Authorization Act.
The National Council for Science and the Environment urges Congress
to appropriate $6.41 billion for the National Science Foundation in
fiscal year 2005, which would be a 15 percent increase over fiscal year
2004. NCSE supports an increase of 15 percent in fiscal year 2005 in
order to place NSF on the doubling track that Congress deemed
necessary. Although the authorized funding level is $7.38 billion for
fiscal year 2005, we understand that this may be beyond reach in the
current fiscal environment.
The President's budget request would increase funding for NSF by
3.0 percent to $5.75 billion in fiscal year 2005. Of the $167 million
in new funding, 45 percent would be devoted to a management initiative
that would provide more staff for NSF and improve the security of its
computer systems. Under the fiscal year 2005 budget request, funding
for most of the disciplinary directorates, such as Biological Sciences
and Geosciences, would increase by only 2.2 percent, only slightly more
than the expected rate of inflation.
Expanding NSF's Environmental Research and Education Portfolio.--
The National Science Foundation plays a crucial role in supporting
environmental R&D. Environmental research often requires knowledge and
discoveries that reach across disciplinary and institutional
boundaries. The NSF recognizes this and encourages multidisciplinary
environmental activities across the entire agency, as well as with
other Federal agencies. The NSF has established a ``virtual
directorate'' for Environmental Research and Education (ERE). Through
this virtual directorate, NSF coordinates the environmental research
and education activities supported by all the directorates and
programs.
Although the National Science Board said environmental research and
education should be one of NSF's ``highest priorities'' (see below),
funding for the ERE research portfolio would decrease by 0.2 percent,
from $932.1 million in fiscal year 2004 to $930.2 million in the fiscal
year 2005 budget request (Table 1). This is the first time that ERE
funding would decline since the National Science Board identified it as
one of NSF's highest priorities in 2000. NCSE encourages Congress to
support more investment in this important area of research. Given that
the National Science Board has been identified environmental research
and education as one of the agency's highest priorities, funding for
the ERE portfolio should grow at least as rapidly as the total NSF
budget. In order to achieve the $1.6 billion funding level recommended
by the National Science Board, NCSE supports rapid growth in NSF's
Environmental Research and Education portfolio over the next several
years.
TABLE 1.--NATIONAL SCIENCE FOUNDATION: ENVIRONMENTAL RESEARCH AND EDUCATION (ERE)
[Budget Authority in Millions of Dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Environmental R&D Change 2004 to 2005
--------------------------------------------------------------------------------------------------------------------
Fiscal Year
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2005 Amount Percent
1999 Actual 2000 Actual 2001 Actual 2002 Actual 2003 Actual 2004 Plan Request
--------------------------------------------------------------------------------------------------------------------------------------------------------
Research and Related Activities
(R&RA):
Biological Sciences............ $117.9 $125.3 $167.0 $174.5 $188.3 $214.1 $214.1 ........... ...........
Comp. & Info. Sci. & Eng....... 4.0 7.0 15.1 15.1 22.1 23.9 23.9 ........... ...........
Engineering.................... 38.0 50.0 62.7 63.7 76.0 76.0 74.0 -$2.0 -2.6
Geosciences.................... 320.9 327.9 409.4 442.8 499.1 513.1 513.1 ........... ...........
Math. and Physical Sci......... 44.3 48.3 56.4 56.4 11.0 32.2 32.2 ........... ...........
Soc., Behav. & Econ. Sci....... 17.8 17.3 20.1 21.7 5.0 21.9 21.9 ........... ...........
Office of Polar Programs....... 45.3 45.3 47.5 49.8 50.9 50.9 50.9 ........... ...........
Integrative Activities\1\...... 7.0 50.0 ........... ........... ........... ........... ........... ........... ...........
--------------------------------------------------------------------------------------------------------------------
Subtotal, R&RA............... 595.2 671.2 778.1 824.0 852.4 932.1 930.2 -2.0 -0.2
Edu. and Human Res.\2\............. ........... ........... ........... ........... 2.0 2.0 2.0 ........... ...........
--------------------------------------------------------------------------------------------------------------------
TOTAL, ERE Budget............ 595.2 671.2 778.1 824.0 854.4 934.1 932.2 -2.0 -0.2
--------------------------------------------------------------------------------------------------------------------
TOTAL, NSF Budget............ 3,690.3 3,923.4 4,459.9 4,774.1 5,369.3 5,577.8 5,745.0 167.2 3.0
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ In fiscal year 1999 and fiscal year 2000, funding for the Biocomplexity and the Environment (BE) Priority Area was included in the Integrative
Activities account. Beginning in fiscal year 2001, BE funds were distributed across the directorates. Funding for BE was $54.88 in fiscal year 2001;
$58.10 million in fiscal year 2002; and $79.20 million in the President's Request for fiscal year 2003.
\2\ Figures for environmental funding in the Education and Human Resources account are not available prior to fiscal year 2003. Although education is
not generally scored as R&D, $2.0 million for Environmental Education was included in the Education and Human Resources Directorate in the ERE budget
from fiscal year 2003 to 2005 (request).
Source: NSF.
Biocomplexity in the Environment.--NCSE is especially supportive of
NSF's priority area on Biocomplexity in the Environment, which is the
flagship of the ERE portfolio. This priority area provides a focal
point for investigators from different disciplines to work together to
understand complex environmental systems, including the roles of humans
in shaping these systems. It includes research in microbial genome
sequencing and ecology of infectious diseases--to help develop
strategies to assess and manage the risks of infectious diseases,
invasive species, and biological weapons crucial to homeland security.
The Biocomplexity in the Environment priority area was reviewed by
a Committee of Visitors in February 2004. The committee reported:
``This program is highly responsive to a great need for integrative
research to answer non-linear complex questions. The outcomes are
helpful to establishing sound science evidence for use in policy
decisions, in making science relevant to the community, in including
the human dimension in consideration of environmental change, and in
integrating these areas of science knowledge and discovery with the
need for environmental literacy among our students in formal education
an the education of the general public.''
We urge Congress to support this critical initiative and to consider
funding it at a level of $136 million, as proposed in fiscal year 2000
budget request for NSF. After several years of rapid growth, the fiscal
year 2005 budget request would provide flat funding of $99.8 million
for Biocomplexity in the Environment.
national science board report on environmental science and engineering
The National Council for Science and the Environment encourages
Congress to support full and effective implementation of the 2000
National Science Board (NSB) report, Environmental Science and
Engineering for the 21st Century: The Role of the National Science
Foundation, within the context of a doubling of the budget for the NSF.
The National Science Board report sets out an ambitious set of
recommendations that could dramatically improve the scientific basis
for environmental decision-making. The first keystone recommendation is
as follows:
``Environmental research, education, and scientific assessment
should be one of NSF's highest priorities. The current environmental
portfolio represents an expenditure of approximately $600 million per
year. In view of the overwhelming importance of, and exciting
opportunities for, progress in the environmental arena, and because
existing resources are fully and appropriately utilized, new funding
will be required. We recommend that support for environmental research,
education, and scientific assessment at NSF be increased by an
additional $1 billion, phased in over the next 5 years, to reach an
annual expenditure of approximately $1.6 billion.''
The report says that the National Science Board expects NSF to
develop budget requests that are consistent with this recommendation.
At first, growth in the Environmental Research and Education budget
reflected its priority status: from fiscal year 1999 to 2001, the ERE
account grew more rapidly than the overall NSF budget. However, the ERE
growth rate has trailed the total NSF growth rate since that time. From
fiscal year 2002 to fiscal year 2005 (request), the ERE budget grew by
only 13.1 percent while the total NSF budget grew by 20.3 percent. The
lagging growth of the Environmental Research and Education budget
relative to the total NSF budget in recent years raises serious
concerns about its status of one NSF's ``highest priorities.''
The National Science Board envisioned a 167 percent increase in
funding for the ERE portfolio, from approximately $600 million to $1.6
billion, within the context of a doubling of the total NSF budget over
5 years. The doubling has not materialized. Nevertheless, if the
Environmental Research and Education portfolio is one of NSF's highest
priorities, then the growth rate of the ERE budget should not lag
behind the growth rate of the total NSF budget.
The National Science Foundation has taken many steps to implement
the recommendations of the NSB. Full implementation of the NSB report
will require strong support from Congress and a significant increase in
funding for NSF's portfolio of environmental science, engineering and
education.
The National Council for Science and the Environment appreciates
the subcommittee's sustained support for environmental research at the
Environmental Protection Agency and the National Science Foundation.
Investments in these agencies continue to pay enormous dividends to the
Nation. Thank you very much for your interest in improving the
scientific basis for environmental decision-making.
______
Prepared Statement of the National Association of University Fisheries
and Wildlife Programs
The National Association of University Fisheries and Wildlife
Programs (NAUFWP) appreciates the opportunity to offer comments on the
fiscal year 2005 budget for the National Science Foundation. NAUWFP is
thankful for support that both the Congress and the administration
demonstrated for the National Science Foundation (NSF) by enacting the
National Science Foundation Authorization Act of 2002. The Act
authorizes a 5-year period of 15 percent annual budget increases,
placing NSF on a ``doubling track,'' which will enhance current and
future U.S. scientific and technological advancements in science. The
National Association of University Fisheries and Wildlife Programs
urges Congress to act on its commitment by increasing fiscal year 2005
funding for NSF 15 percent over the fiscal year 2004 enacted budget,
for a total increase of $6.415 billion.
Despite tough budget times, this kind of investment is critical.
NSF is one of the Nation's best tools for promoting and advancing
scientific research and education. Although NSF accounts for only 4
percent of Federal Research and Development spending, it supports
nearly 50 percent of the non-medical Biological Sciences research at
our colleges and universities.
BIOLOGICAL SERVICES
Within the Research and Related Activities (R&RA) account, the
Biological Sciences Directorate is of particular interest to the
wildlife conservation and research community. The Biological Sciences
Activity (BIO) supports research, infrastructure, and education at U.S.
academic institutions, including NAUFWP universities.
BIO provides 65 percent of the support for basic research in non-
medical aspects of the biological sciences at academic institutions.
Because the majority of Federal support for the life sciences--over 85
percent--goes to health-related research funded by the National
Institute of Health, NSF's contribution to the broad array of the
biological sciences is highly significant and strategically focused,
particularly in such areas as environmental biology and plant sciences.
In nationally important issues related to wildlife and wildlife
habitat, BIO-supported research enhances the understanding of how
living organisms function and interact with non-living systems.
Current research includes a project investigating elk-wolf
interactions in Yellowstone National Park. Results of the project will
enhance knowledge of large mammalian systems and facilitate design of
sound endangered species programs. Another BIO-supported research
project involves modeling population density and foraging behavior of
Brazilian free-tailed bats. Data from this project have shown that bats
from two Texas caves provide pest control service for agricultural
crops such as corn and cotton. The estimated value of protection
afforded the crops by the bats amounts to as much as $258 million
annually; thus conserving bat diversity and habitat is both
biologically and economically beneficial.
The President's budget proposal restricts the BIO program to an
increase of approximately 2 percent. We recommend you provide the
Biological Sciences account with an increase equal to the overall R&RA
increase, which is 4.7 percent over the fiscal year 2004 enacted level.
This would equal an increase of $27.58 million for Biological Sciences,
for a total budget of $614.47 million in fiscal year 2005.
TOOLS
One of the NSF's strategic goals is to support investment in
Tools--state-of-the art science and engineering facilities, tools, and
other infrastructure that enable discovery, learning, and innovation.
Funds dedicated to this account allow NSF to revitalize and upgrade
aging infrastructure, and enable progress in research and education.
NAUFWP supports the President's requested $58.3 million increase for
the Major Research Equipment and Facilities Construction (MREFC),
within the Tools account. Increased funding for MREFC will support
ongoing projects and provide funding necessary to launch proposed
projects.
We urge you to support the President's request of $12 million in
fiscal year 2005 for the National Ecological Observatory Network
(NEON). NEON will be a continental-scale research instrument consisting
of geographically distributed observatories, networked via state-of-
the-art communications allowing scientists and engineers to conduct
research spanning all levels of biological organization. NEON will
provide researchers with important tools necessary to address
ecological questions regarding habitat and wildlife conservation in the
United States. Examples of research that could be addressed by NEON
include: the spread of infectious diseases like West Nile Virus and the
affect of western wildfires on water quality in the central or eastern
United States.
ABOUT THE NATIONAL ASSOCIATION OF UNIVERSITY FISHERIES AND WILDLIFE
PROGRAMS
The National Association of University Fisheries and Wildlife
Programs represents approximately 55 university programs and their 440
faculty members, scientists, and extension specialists, and over 9,200
undergraduate and graduate students working to enhance the science and
management of fisheries and wildlife resources. Our affiliates conduct
research on a diversity of subjects, fulfilling the information needs
of fish, wildlife, and natural resource management. Individual projects
are used as building blocks in comprehensive research that provides
applied science information for management.
Please include this testimony in the official record. Thank you for
the opportunity to share our views with the committee.
______
Prepared Statement of The Nature Conservancy
INTRODUCTION AND BACKGROUND
Mr. Chairman and members of the subcommittee, I appreciate the
opportunity to submit written testimony on behalf of The Nature
Conservancy for fiscal year 2005 appropriations for the U.S.
Environmental Protection Agency (EPA).
The Nature Conservancy is an international, non-profit organization
dedicated to the conservation of biological diversity. Our mission is
to preserve the plants, animals and natural communities that represent
the diversity of life on Earth by protecting the lands and waters they
need to survive. The Conservancy has more than 1,000,000 individual
members and 1,900 corporate associates. We have programs in all 50
States and in 27 foreign countries. We have protected more than 15
million acres in the United States and nearly 102 million acres with
local partner organization globally. The Conservancy owns and manages
about 1,400 preserves throughout the United States--the largest private
system of nature sanctuaries in the world. Sound science and strong
partnerships with public and private landowners to achieve tangible and
lasting results characterize our conservation programs.
Biological diversity is important for a number of reasons. Species
and natural communities harbor genetic and chemical resources that
contribute to advances and products in medicine, agriculture and
industry. The value of these goods is enormous. It represents, however,
only a fraction of the value these ecosystems provide to humanity in
terms of services, such as waste assimilation and treatment, climate
regulation, drinking water, and flood control. One estimate of the
value of these services for the entire biosphere is $33 trillion, which
is nearly double the global gross national product (Costanza et al
1997). In addition to these benefits, the environment serves as an
instrument through which educational, cultural, aesthetic and spiritual
values are often expressed.
In 2000, The Nature Conservancy and the Association for
Biodiversity Information released a study documenting America's
astonishing natural abundance. For example, we now know the United
States is home to more than 200,000 native species of plants and
animals and ranks at the top in its variety of mammals and freshwater
fish. Ecosystems in the United States are also among the most diverse.
They range from tundra, to deserts, prairies, and various forest types.
However, as many as one-third of the Nation's species are at risk and
at least 500 species have already gone extinct or are missing. The
single biggest threat to species survival is loss of habitat, which
generally occurs as a result of human activities. Almost 60 percent of
America's landscape is already severely altered.
Reversing the trend will require working at larger scales and
across State and other jurisdictional lines. The Nature Conservancy is
committed to this effort. For example, we have invested $1 billion in
private funds over the last several years to protect critical natural
areas around the United States and abroad, and we are committed to
making similar investments over the next several years. These
investments alone, however, will not be enough. True conservation
success will be achieved only through the work of partners, including
the Federal Government. Funding is needed at the Federal level to
support on-the-ground conservation projects and to ensure policies that
promote a sustainable environment.
SUMMARY OF RECOMMENDATIONS
EPA is responsible for administering a number of programs that
protect public health and the environment. The Nature Conservancy
recommends level or modest funding increases for seven programs with
which we have had direct experience and that we believe help preserve
biodiversity. The seven programs include the following:
THE NATURE CONSERVANCY'S FISCAL YEAR 2005 FUNDING RECOMMENDATIONS FOR
SELECTED EPA PROGRAMS
------------------------------------------------------------------------
Fiscal Year 2005 Recommendations
Program Name -------------------------------------
EPM Account STAG Account
------------------------------------------------------------------------
Clean Water Act State Revolving ................. $1,350,000,000
Fund (CWSRF).....................
Coastal Watersheds and National \1\ $50,000,000 .................
Estuaries Program................
Non-point Source Management 16,900,000 250,000,000
Program (Section 319)............
Targeted Watershed Program........ 25,000,000 .................
Wetlands Protection Program....... 18,000,000 18,000,000
Chesapeake Bay Program............ 22,000,000 .................
Great Lakes National Program 17,000,000 .................
Office...........................
------------------------------------------------------------------------
\1\ Includes $35 million for National Estuaries Programs as authorized
under the Estuaries and Clean Waters Act of 2000 and $15 million for
other coastal activities.
Implementation of these programs produces benefits to public
health, the environment and, by extension, biodiversity conservation.
For example, loans made under the CWSRF to establish or restore
riparian corridors along streams (to address non-point pollution) will
improve water quality, while also improving or providing important
aquatic and terrestrial habitat. Section 319 funds can be used to
produce a similar range of benefits.
In general, these programs satisfy niches filled by no other
Federal programs. For example, the Section 319 program, unlike Farm
Bill programs, can be used to address non-point pollution from diverse
sources such as urban runoff and leaking septic systems, not just
pollution from agricultural sources. Its broader focus reaches more
vulnerable habitats such as grassed swales that are important to
grassland birds, which as a group are the most threatened in the United
States.
In general, the above programs are holistic and non-regulatory in
approach. The geographically focused programs, in particular, enable
multiple pollution problems to be addressed in an integrated rather
than singular fashion, which makes them incredibly important to
biodiversity conservation. They also provide opportunities for public
and private parties to collaborate to achieve mutually beneficial
goals.
My remaining comments focus on two of the above programs: Coastal
Watersheds and National Estuaries Program; and the Great Lakes National
Program Office. Should the subcommittee request it, the Conservancy
would be happy to provide documentation of the importance of the other
programs not highlighted in my comments below.
COASTAL WATERSHEDS AND NATIONAL ESTUARIES PROGRAM
Through this program, the EPA provides funding to the 29 National
Estuary Programs (NEPs) for development and implementation of
Comprehensive Conservation and Management Plans (CCMPs). In addition,
this program funds other activities benefiting coastal watersheds
including partnerships to abate threats to coastal habitats and
recreational waters. Key management issues addressed by the NEPs and
other local coastal partnerships include habitat loss and degradation,
introductions of pathogens and toxins that threaten human and aquatic
health, invasive species, and freshwater inflows. This program also
funds monitoring and permitting activities, such as dredging, and is
examining how to curtail point source discharges into coastal waters.
Coastal watersheds contribute to the Nation's economic,
environmental, and social well being. They provide habitat for various
life stages of important plant and animal species, including threatened
and endangered species and those having commercial or recreational
value. They also harbor species that filter pollutants from water,
control sedimentation, and protect against shoreline damage and floods.
Over half of the United States population lives within areas that
affect coastal watersheds. Additional resources are needed to enable
the NEPs and other partnerships to address the complex threats to
coastal health, such as invasive species and nutrient pollution.
Increased resources for this program will enable NEPs to implement
their conservation plans. Additional funding will strengthen the EPA's
ability to provide seed monies to other important local coastal
watershed projects that heretofore have had few funding opportunities
available to them. Financing of these latter projects could perhaps be
provided through a competitive grants program to State, local, and non-
governmental organizations. Additional funding could be used to expand
coverage of the NEP to additional estuaries. Since 1991, 34 additional
sites have either been nominated by a governor or have expressed
interest in being designated as a NEP. EPA, however, has been able to
select only seven nominees due to funding constraints. If the Nation is
to make progress in addressing the significant management issues facing
estuaries, additional funding is required for this program.
The Nature Conservancy respectfully requests an appropriation of
$50 million for Coastal Watersheds and National Estuaries Program,
which includes the $35 million authorized level for the NEPs and an
additional $15 million for other coastal activities. The
administration's request for these two programs combined is $19.2
million.
THE GREAT LAKES
EPA's Great Lakes National Program Office (GLNPO) funds and
conducts programs and projects to protect, maintain and restore the
chemical, biological and physical integrity of the Great Lakes--the
largest freshwater ecosystem on Earth. GLNPO serves an important role
of bringing together Federal, State, tribal, non-governmental and
industry partners in an integrated ecosystem approach.
GLNPO collaborates with its multi-State and multi-agency partners
to accomplish an agenda for ecosystem management which includes
reducing toxic substances, protecting and restoring important habitats,
and protecting human/ecosystem health. GLNPO combines research and
monitoring with education and outreach, and it supports grants for
specific activities to enhance and protect the Great Lakes environment.
GLNPO advocates implementation of a community-based ecosystem approach
to coordinate environmental efforts in the Great Lakes and has favored
targeting the ecologically significant habitats identified in The
Nature Conservancy-led Conservation Blueprint for the Great Lakes. Over
the years, The Nature Conservancy's Great Lakes Program and Great Lakes
State Chapters have been frequent and substantial partners with GLNPO.
The Nature Conservancy recommends an appropriation of $17 million
in base funding for EPA's Great Lakes National Program Office in fiscal
year 2005. This request is $1.6 million higher than the
administration's request of $15.4 million. The Conservancy also
supports the $5.7 million included in the President's request for the
Remedial Action Plans and Lakewide Management Plans.
CLOSING
Thank you for the opportunity to provide these brief comments and
for your attention to the important role EPA's programs play in
protecting public health and the environment and in conserving
biodiversity. While the charge to conserve biodiversity is a daunting
one, public and private partnerships such as those afforded under EPA's
programs offer a promise of success. The Conservancy would not be
investing so heavily with its own resources if we did not believe this
to be true. We look forward to continuing our work with Federal
agencies, State and local governments, non-governmental organizations,
and the private sector to ensure the long-term protection and
sustainable use of the environment toward the ultimate goal of
preserving the diversity of life on Earth. We appreciate the
subcommittee's support for the EPA programs that help make this
important work possible.
______
Prepared Statement of the University of Medicine and Dentistry of New
Jersey
The following is the testimony of the University of Medicine and
Dentistry of New Jersey (UMDNJ), the largest freestanding public
university of the health sciences in the Nation. The University is
located on five State-wide campuses and contains three medical schools,
and schools of dentistry, nursing, health related professions, public
health and graduate biomedical sciences. UMDNJ also comprises a
University-owned acute care hospital, three core teaching hospitals, an
integrated behavioral health care delivery system, and affiliations
with more than 200 health care and educational institutions State-wide.
We appreciate the opportunity to bring to your attention two
priority projects--the Child Health Institute and the Geriatric
Research Center--which are consistent with the mission of this
committee.
Our first priority is the development of the Child Health Institute
of New Jersey at the UMDNJ-Robert Wood Johnson Medical School (RWJMS)
in New Brunswick. RWJMS is one of three schools of medicine at UMDNJ.
It is nationally ranked among the top ten medical schools in the
percentage of minority student enrollment, and the top one-third in
terms of grant support per faculty member. RWJMS is home to major
research institutes including The Cancer Institute of New Jersey, the
Center for Advanced Biotechnology and Medicine, the Environmental and
Occupational Health Sciences Institute, and the Child Health Institute
of New Jersey.
The Child Health Institute of New Jersey is a comprehensive
biomedical research center. It will be the cornerstone institution of a
major research and clinical effort to understand, prevent and treat
environmental and genetic diseases of infants and children. Its
development is integral to the enhancement of research at Robert Wood
Johnson Medical School (RWJMS) in developmental genetics and biology,
particularly as it relates to disorders that affect a child's
development and growth, physically and functionally. The program will
enable the medical school to expand and strengthen basic research
efforts with clinical departments at the Robert Wood Johnson University
Hospital (RWJUH) and, in particular, those involved with the new
Bristol-Myers Squibb Children's Hospital at RWJUH, especially
obstetrics, pediatrics, neurology, surgery and psychiatry.
The Institute builds on existing significant strengths in genetic,
environmental and neuroscience research within UMDNJ-RWJMS and
associated joint programs with Rutgers University and other research
institutes. For example, the Environmental and Occupational Health
Sciences Institute (EOHSI) is a National Institute of Environmental
Health Sciences (NIEHS) recognized center of excellence which
investigates environmental influences on normal and disordered
functions; the Cancer Institute of New Jersey (CINJ), a National Cancer
Institute-designated Comprehensive Cancer Center, studies disordered
cell growth; and the Center for Advanced Biotechnology and Medicine
(CABM) characterizes gene structure and function.
The best science requires creative scientists working in state of
the art buildings using state of the art equipment. The construction of
the Child Health Institute at RWJMS will fill a critical gap through
recruitment of new faculty to build an intellectual atmosphere of basic
molecular programs in child development and health.
Research conducted by the Institute will focus on the molecular and
genetic mechanisms that direct the development of human form,
subsequent growth, and acquisition of function. The scientists and
students will investigate disorders that occur during the process of
development to determine how genes and the environment interact to
cause childhood diseases. Ultimately, we hope to identify avenues of
prevention, treatment, and even cures for these disorders.
Investigations by the Institute will address basic and
translational scientific issues at the molecular and mechanistic levels
to advance biomedical science and improve health. For example, despite
effective therapy, asthma-related health needs have risen by almost 50
percent over the past decade with hospitalization rates 4 to 5 times
higher for African Americans. Methods of prevention, with attention at
both micro and macro-environmental conditions, have only been partially
effective. Treatment regimens are relatively unchanged. Effective
prevention and treatment will require more exacting understanding of
the molecular mechanisms of the stimuli-receptor reactions that elicit
asthmatic attacks as well as more detailed understanding of the
molecular reactions effected by cells once stimulated by environmental
factors. The molecular and cellular basis of injury reactions,
including reactions of an allergic nature, will be a focus of the
research at the Child Health Institute. Continued exploration of the
basic molecular underpinnings of injury reactions will lead to more
rational methods to prevent, minimize and treat asthmatic reactions and
deaths. Urban academic medical centers such as the Robert Wood Johnson
Medical School are at the epicenter of the current escalation in asthma
and the Child Health Institute is well positioned, in conjunction with
other institutes at the medical school to address this critical issue.
The Child Health Institute will act as a magnet for additional
growth in research and healthcare program development in New Jersey.
The Institute will encompass 150,000 gross square feet and will house
more than 40 research laboratories and associated support facilities.
Fourteen senior faculty will direct teams of MDs and PhDs, visiting
scientists, postdoctoral fellows, graduate students and technicians for
a full complement of approximately 130 employees. The institutional
goals of the Child Health Institute are to forge the scientific
programs at the Institute with hospital based programs into a major
center for children's health and to partner with pharmaceutical,
chemical and information industries in growing opportunities in
biotechnology and bioinformatics.
Construction costs for the Institute are estimated to be
approximately $72 million; approximately half of this figure is
generally associated with local employment. At maturity, the Institute
is expected to attract $7 to $9 million of new research funding
annually. The Institute's total annual operating budget is projected to
be $10 to $12 million, with total economic impact on the New Brunswick
area projected to be many times this amount.
The Child Health Institute has assembled over $40 million to fund
its building and programs through a strong partnership among private,
corporate and government entities. This support includes more than $6
million in congressionally directed appropriations for the CHI over the
past 4 years, including an appropriation from this committee in fiscal
year 2003; and a $1.9 million facility grant awarded by the National
Center for Research Resources of the National Institutes of Health. We
respectfully seek $2 million to complement support already received in
Federal participation to further advance the development of the Child
Health Institute of New Jersey. A critical component of the research
infrastructure being developed within the Child Health Institute is an
Imaging Core Facility. Through this facility, researchers will be able
to better visualize the dynamics of structures within cells and cells
within developing tissues. Understanding these dynamics is crucial to
expanding knowledge of the processes involved in basic molecular
underpinnings of normal and abnormal growth and injury reactions.
Requested funding will be utilized for the purchase of analytical
equipment, including laser scanning and multi-photon microscopes to
fit-out this shared facility.
Our second priority is the development of a Geriatric Research
Center within the Center for Aging, which is part of the UMDNJ-School
of Osteopathic Medicine (SOM) in Stratford in southern New Jersey. As
an osteopathic medical school, SOM places great emphasis on primary
care, wellness, health promotion and disease prevention in all areas of
its Mission. Enrolled students receive comprehensive instruction in the
basic and clinical sciences, emphasizing the primary care of the
patient. SOM also sponsors the largest graduate medical education
program of all osteopathic medical schools in the Nation. An active
continuing medical education program targets primary care physicians in
the southern region of New Jersey. SOM's longstanding affiliation with
the Area Health Education Centers provides links to hundreds of
community-based agencies and health care providers, with whom the
school works in partnership to address community health care needs and
policy issues. For more than a decade the school has finished among the
top three osteopathic schools in the Nation for research funds received
from the National Institutes of Health.
In response to the growing number of elderly in New Jersey,
including nearly 300,000 veterans living in the State over age 65, SOM
has taken a leadership role in the development of programs and services
specifically for older individuals. These activities are coordinated
through the SOM Center for Aging, which was established in 1987 and
designated as a center of excellence in clinical services, education
and research in 1989.
The Center, whose staff represents multiple disciplines, is
nationally recognized as a leader in quality care for older
individuals, providing an array of services, varied educational
experiences for health care professionals and research in the field of
aging.
Through a comprehensive continuum of care which includes ambulatory
sites, acute care, nursing homes, assisted living facilities, hospice
programs, home care, adult medical day care, and senior citizen
subsidized housing, the Center for Aging provides health care to both
well community-residing elderly as well as those who are frail,
multiply compromised and homebound.
Recognized for its strength in education and training, the Center
for Aging and SOM has attained both State-wide and national prominence.
In 1989 UMDNJ-SOM was the first osteopathic medical school to receive
Federal funding for a 2-year geriatric medicine and dentistry
fellowship program. Currently in its 14th year of Federal support, the
fellowship program has been expanded to include psychiatry and
psychology. The UMDNJ-School of Osteopathic Medicine, through the
Center of Aging, was ranked in the top ten best graduate schools in
geriatric medicine for 2004 in U.S. News and World Report. It was also
recognized as ``Best Medicine'' in geriatrics for 2004 by Philadelphia
Magazine. The Center for Aging also serves as the administering agency
for the State-wide New Jersey Geriatric Education Center (NJGEC), which
has been federally funded since 1990 and has received Federal
recognition for its health promotion initiatives. NJGEC has provided
training to more than 15,000 healthcare professionals of multiple
disciplines throughout New Jersey.
As a center of excellence, the Center for Aging continues to build
its research component. The Center is involved in many clinical drug
trials and has several clinical and behavioral research projects
underway. It is in a position to build an extensive patient database
across its service continuum, and to collaborate with the other schools
within the UMDNJ system in aging-related research.
Attracting more researchers to the Center is critical to achieving
national prominence as a center for excellence in geriatrics. A major
drawback to that goal is the lack of dedicated space to expand the
Center's research laboratories.
The UMDNJ-School of Osteopathic Medicine is seeking $5 million in
capital and program funds to support dedicated space and faculty for a
Geriatric Research Center within the Center for Aging. Total project
costs are estimated at $30 million for capital and program needs.
External public and private sources, including the U.S. Department of
Health and Human Services, Health Resources and Service Administration;
the Administration on Aging; and the State of New Jersey; have
contributed over $6 million toward activities associated with this
project.
Requested fiscal year 2005 funding would provide support for the
construction of the physical space to house research programs focusing
on the cellular, biochemical and psychological aspects of aging. Basic
science research will build on existing programs in nutrition, protein
loss, free radical injury, genetic determinants of aging and disease,
the cellular aging process and Alzheimer's disease. Space would also be
allocated to support behavioral research, where researchers in the
biopsychosocial aspects of aging will study such areas as caregiver
stress, mental health problems in the elderly, end of life issues,
palliative care, and behavioral management intervention strategies.
The Center's clinical and educational programs will provide the
synergy needed for the development of a full range of basic science and
behavioral research in the field of aging. The strength of this dual
approach underscores the close relationship between the physiological
and psychological aspects of growing old and will broaden opportunities
to seek extramural funding for research in a variety of areas. Of key
importance will be the role of the Center in translating research
findings into patient care practices, thereby enhancing the health and
quality of life of older Americans, including those most vulnerable and
at greatest risk for poor health across our State and Nation. We
respectfully seek $5 million in capital and program funds to support
dedicated space for a Geriatric Research Center.
We want to thank this committee for supporting the critical needs
of research and economic development throughout the Nation, and for
recognizing the role that medicine and its associated technologies
contribute as engines for economic growth. Thank you for your
consideration of UMDNJ's priority projects--the Child Health Institute
of New Jersey, and the Geriatric Research Center.
______
Prepared Statement of the Alliance to Save Energy
My name is Kateri Callahan and I serve as the President of the
Alliance to Save Energy, a bipartisan, nonprofit coalition of more than
80 business, government, environmental, and consumer leaders. The
Alliance's mission is to promote energy efficiency worldwide to achieve
a healthier economy, a cleaner environment, and greater energy
security. The Alliance, founded by then-Senators Charles Percy and
Hubert Humphrey, currently enjoys the leadership of Senator Byron
Dorgan as Chairman; former CEO of Osram Sylvania Dean Langford as Co-
Chairman; and Representative Ed Markey and Senators Susan Collins, Jeff
Bingaman, and Jim Jeffords as its Vice-Chairs. Attached are lists of
the Alliance's Board of Directors and its Associate members, which I
respectfully request be included in the record as part of this
testimony.
I thank the subcommittee for the opportunity to testify on behalf
of the members and Board of the Alliance to voice our strong support
for increased Federal funding to the Environmental Protection Agency's
Energy Star program in fiscal year 2005. The Energy Star program is, in
our opinion, one of the government's most successful efforts to promote
marketplace solutions to greater energy efficiency. The Energy Star
program is an entirely voluntary program that is yielding significant
economic returns to our Nation's consumers and significant
environmental benefits to our Nation as a whole. Increased investment
in the Energy Star program will translate to increased energy savings
by taxpayers across the country. Studies estimate that every Federal
dollar spent on the Energy Star program results in an average savings
of $75 or more in consumer energy bills; the reduction of about 3.7
tons of carbon dioxide emissions; and an investment of $15 in private
sector capital in development of energy-efficient technologies and
products.
The Alliance has a long history of advocacy, as well as research
and evaluation, of Federal efforts to promote energy efficiency.
Congress has enacted important measures, and the administration has
adopted meaningful regulations and standards that are yielding energy
savings through energy efficiency; the Energy Star program is of
particular note, however, as it testifies to the important achievements
that can be made through cooperative partnerships between government
and businesses. The Climate Protection Division at EPA, which operates
the Energy Star program, works closely with manufacturers, retailers,
building owners, and energy service providers, as well as State and
local governments, nonprofits, and other organizations to promote
energy-efficient products and buildings. As you may know, through the
Energy Star program a set of rigorous guidelines that represent high
energy efficiency goals are established for the products or services of
the participants in order to qualify for the Energy Star label. The
label is, quite simply, the ``good housekeeping seal of approval.''
Through this important and impressive program, business and
government--working in lockstep--are achieving national environmental,
energy security, and economic goals.
Energy efficiency is an investment. By purchasing more efficient,
smarter technologies, there is often a modest additional cost, but that
additional cost is paid back many times to the consumer through lower
energy bills. Energy Star helps consumers understand and realize these
benefits. Last year alone, Americans, with the help of Energy Star,
saved $9 billion on their energy bills. Consumers can use these
significant savings to invest in the economy, their families, and their
future.
ENERGY EFFICIENCY IS AMERICA'S GREATEST ENERGY RESOURCE
Mr. Chairman, energy efficiency is America's greatest energy
resource. It makes a larger contribution to meeting our energy needs
than petroleum, natural gas, or even coal. The Alliance to Save Energy
estimates that energy efficiency gains since 1973 are now saving at
least 39 quadrillion BTUs of energy each year, or about 40 percent of
our actual energy use.\1\ The energy savings we are enjoying from
energy efficiency far exceed consumption of natural gas or coal, and
far outpace energy produced using oil, nuclear, and other sources.
---------------------------------------------------------------------------
\1\ Energy efficiency savings estimated by Alliance to Save Energy.
Production quantities from Energy Information Administration, Monthly
Energy Review, January 2004.
Every BTU we save is one less BTU that needs to be generated.
What's more, increasing America's energy efficiency is the quickest,
cleanest, and cheapest way of increasing our energy supply. Without
these enormous savings, our difficulties in meeting energy demand would
be far, far worse than they are today.
For example, in 2003, Energy Star helped Americans save enough
energy to power 20 million homes and avoid greenhouse gas emissions
equivalent to removing 18 million cars from the road. Getting more for
less is the American way, and Energy Star meets this goal by helping
millions of Americans get the energy they need, while saving money and
pollution.
Despite the introduction of new technologies and the integration of
energy efficiency into the Nation's energy policies and economy, we
barely have scratched the surface of energy efficiency's potential. It
seems that every year technological developments bring more and better
measures for reducing electricity demand and for making homes,
buildings, and the devices we use, from washing machines to computers,
more energy-efficient. Mr. Chairman, Energy Star is an important tool
for educating American consumers about these emerging, efficient
products. Consumers are learning to ``look for the Energy Star label''
as they comparison shop for appliances, homes, electronic devices, and
other products.
HOW ENERGY STAR CAPITALIZES ON THIS RESOURCE
Mr. Chairman, EPA's Energy Star program has proven to be an
extremely effective way for this Nation to capitalize on the potential
of energy efficiency as a resource. Energy Star's voluntary partnership
program--which includes Energy Star Buildings, Energy Star Homes,
Energy Star Small Business, and Energy Star Labeled Products--works by
removing marketplace barriers to existing and emerging technologies; by
providing information on technology opportunities; by generating
awareness of energy-efficient products and services; and by educating
consumers about life-cycle energy savings. Consumers know that a
product with the Energy Star label is among the most energy-efficient
in the market.
Last year, the Alliance to Save Energy undertook an extensive
public opinion survey and found that the name recognition of the Energy
Star program is very high--86 percent among U.S. homeowners.
Approximately one-third of U.S. consumers report using the Energy Star
label as an information tool for making purchase decisions; and an even
higher number report using Energy Star as an information tool to help
them save energy. Most consumers who are aware of the Energy Star label
correctly understand that products bearing the Energy Star label use
less energy and can save them money on energy bills.
Mr. Chairman, as you may be aware, your State of New York has a
program to promote, actively, the Energy Star label with consumers.
This effort has yielded very positive results. Our research indicates
that New York residents are significantly more likely to have purchased
an Energy Star labeled product than consumers outside the State. New
York's efforts are an impressive example of how, by using the Energy
Star label, government can reduce overall energy use while at the same
time assuring lower utility bills for constituents.
ABOUT THE ENERGY STAR PARTNERSHIPS
Energy Star is composed entirely of voluntary partnerships, and
these have grown since the early 1990's to include thousands of product
manufacturers, private and public building owners and operators,
homebuilders, small businesses, utilities, and retailers. The sheer
number of these partnerships demonstrates clearly that energy
efficiency delivers ``pollution prevention at a profit.''
Energy Star serves broad constituencies in every State in the
country. Energy Star includes over 1,250 manufacturing partners who
make and market over 18,000 different models of Energy Star qualifying
products. Energy Star assists over 8,000 small businesses with their
efforts to maximize the energy efficiency of their facilities. Energy
Star counts more than 3,000 builder partners and partners who supply
products and services for energy-efficient home construction. To date,
more than 100,000 Energy Star Homes have been built--locking in
financial savings for homeowners of more than $26 million annually.
Energy Star includes more than 12,000 commercial and industrial
participants representing more than 15 percent of the Nation's total
commercial, public, and industrial markets and estimated savings of
more than 47 billion kilowatt hours of energy.
As you may know, for the last 4 years, the Alliance has asked many
of Energy Star's supporters to join us in our request for a significant
increase in funding for the program. The response has been remarkable.
Joining us in our request are 575 companies and partners of the Energy
Star program as well as 2,850 individuals from around the country.
Attached please find a copy of this letter with the names and addresses
of the supporters for the record.
MUCH HAS BEEN ACCOMPLISHED, BUT HUGE POTENTIAL REMAINS UNTAPPED
The Energy Star program has made a significant contribution to
reducing consumer energy use, but a wide array of important, additional
opportunities to use the program to promote energy remain untapped.
Energy Star is a success, poised to provide more savings and enhanced
environmental protection as soon as the government is ready and able to
invest more.
In 2001, the President's National Energy Plan recommended that the
Energy Star program be expanded and that the Energy Star labeling
program be extended to cover more products. For the past 3 years, the
energy bills that have passed the House and Senate have authorized or
expanded the Energy Star program. And, time and again, the President
and the Administrator of the EPA have noted that voluntary measures are
vital to addressing climate change and have held up Energy Star as an
exemplary program. Notwithstanding these pronouncements of support, for
the fourth year in a row, the administration has recommended virtually
level funding for the Energy Star program in fiscal year 2005. In
addition, over the past several years, the program has been subjected
to funding rescissions and internal cuts. Yet, even in the face of
these tight Federal budgets, the number of products and manufacturers
in the labeling program has greatly expanded, and the number of
partners in the Buildings, Homes, and Small Business programs has
soared.
Mr. Chairman, considering the growing energy prices around the
country and the concerns about electricity reliability and pollution
abatement, the Alliance believes that the Energy Star program should
not only be significantly increased for fiscal year 2005, but that the
subcommittee also should commit to doubling funding for the program
over the next 5 years. This would enable the Energy Star program to
look not only at additional products, but also to address whole-home
retrofits, including insulation, duct sealing, and home envelope
sealing. Energy Star has additional market barriers to break through,
including building homeowner trust in energy-efficient home
improvements and audit programs. By building on the Energy Star name,
we can save much more energy.
In addition to labeling products and buildings, Energy Star has
begun a successful effort working with State and local organizations to
help homeowners audit and upgrade the efficiency of their homes. Home
Performance with Energy Star has been successful in New York,
Wisconsin, and California. For example, in New York, as of January of
this year, 4,000 energy upgrades had been completed at a pace of some
300 homes/month. On average these upgrades save each homeowner some 600
kWh per year. But much more needs to be done to implement similar
programs across the country. With additional funding, the Energy Star
program could develop a supportive infrastructure for contractors
around the country, share information with interested State
organizations, and develop marketing efforts in up to 10 metropolitan
areas per year.
RECOMMENDATIONS
Mr. Chairman, EPA's Energy Star program has clearly demonstrated
its importance to allowing the United States to capitalize on its
greatest energy ``resource''--energy efficiency. The program is
delivering real progress toward meeting our country's environmental and
energy security goals, while at the same time putting more money in
consumers' pockets through reduced energy bills. That's a win-win-win-
win--on four important national fronts. More investment by the Federal
Government, we believe, would simply expand and increase the benefits
now being enjoyed by the country and its citizens through this
important, voluntary partnership between the government and industry.
The Alliance to Save Energy respectfully recommends the
subcommittee take the following actions to best leverage the proven
results that stem from EPA's Energy Star program:
--First, we ask that the Congress, as it did in fiscal year 2004,
specify the exact level of Federal funding that is appropriated
for the Energy Star program. Such direction to EPA will help to
assure that funding intended by Congress for the program is
used by the agency for that purpose.
--Second, we recommend that the Congress increase funding of the
Energy Star program by $10 million over the administration's
proposal to expand the number of products, programs, and
partners involved in the current program. As mentioned earlier
in the testimony, we believe Congress should double the budget
for the Energy Star program within 5 years; this can be
accomplished by adding $10 million per annum over the next 5
fiscal years.
--Third, we ask Congress to consider an expansion of the Energy Star
program to include a ``Home Performance'' component. This new
component that would bring together the Federal Government
(EPA, along with the Departments of Energy and Housing and
Urban Development), the private sector, and State-level
organizations to extend the Energy Star brand into whole-house
improvements. Home Performance pilot projects in this area have
been undertaken successfully in New York, Illinois, and
Wisconsin. The Alliance believes that the Federal Government
needs to take leadership in this area to assure that the energy
efficiency benefits being realized in pilot projects today can
be translated into a nationwide, whole-home energy savings
program.
CONCLUSION
The Energy Star program proves that environmental protection can be
achieved while simultaneously saving consumers money on their energy
bills and enhancing the economy. Energy Star provides the catalyst for
many businesses, State and local government institutions, and consumers
to invest in energy efficiency, which in turn yields multiple private
and public benefits. It does this by providing access to information,
improving brand recognition, and reporting positive publicity.
While there are many demands on the country's financial resources,
Energy Star has proven tremendously cost-effective and, more
importantly, it returns important benefits to the Nation. Every Federal
dollar invested in Energy Star in fiscal year 2005 will return a
significant yield in cost-effective pollution reduction; economic
stimulation through investment in new technology; energy security
through reduced demand; and consumer savings through lower energy
bills. It is a program deserving of both expansion and greater Federal
investment.
Mr. Chairman and members of the subcommittee, on behalf of the
Alliance to Save Energy, its Board and its Associates, I appreciate
this opportunity to appear before you today.
______
Prepared Statement of the U.S. Conference of Mayors, National
Association of Counties, National Association of Local Housing Finance
Agencies, and National Community Development Association
Mr. Chairman and members of the subcommittee, this testimony is
presented on behalf of the U.S. Conference of Mayors, the National
Association of Counties, the National Community Development
Association, and the National Association of Local Housing Finance
Agencies. We appreciate the opportunity to present our views on fiscal
year 2005 appropriations for the Department of Housing and Urban
Development, and in particular, the two priority programs for local
governments--the Community Development Block Grant (CDBG) and the Home
Investment Partnerships program (HOME).
We thank you, Mr. Chairman and members of the subcommittee for your
continuing support for these priority local government programs. Local
government officials urge you to increase CDBG formula funding in
fiscal year 2004 to $5 billion and HOME formula funding to $2.25
billion. These programs work, they make a real difference in people's
lives, and it is our sincere hope that they will be funded at levels
that reflect the very real community development and affordable housing
needs that exist across our country.
WHY CDBG IS EFFECTIVE AND CRITICALLY NEEDED
Now in its 30th year, having been signed into law by President
Gerald Ford in 1974, CDBG is working in communities across the country.
The key to its success is the inherent flexibility for it to adapt to
affordable housing and neighborhood revitalization needs in our
Nation's urban, suburban and rural areas.
In fiscal year 2003 alone, 94.8 percent of the CDBG funds allocated
to entitlement cities and counties went to activities principally
benefitting low- and moderate-income persons and 96.7 percent of the
CDBG funds allocated to States went to activities principally
benefitting low- and moderate-income persons. A total of 184,611
households were assisted through the program in fiscal year 2003. The
program created or retained an astounding 108,700 jobs. For every $1 of
CDBG funding another $2.79 in private funding and $0.77 in public
funding was leveraged in fiscal year 2003. The program has a good track
record in business retention, with over 80 percent of the businesses
assisted through the program still in operation after 3 years. Even
though the program has performed well the annual formula allocation for
CDBG has remained relatively static over the last decade, even
decreasing slightly in the past 2 years. The program has never been
adjusted for inflation, since its enactment in 1974. With the existing
cuts to the program, continued project-specific set-asides in the
program, inflation, and more entitlement communities receiving funds,
the formula allocation is decreasing nationwide for cities and counties
that administer the program. In the last 2 years, an across-the-board
reduction in Federal programs has reduced the program even further.
We, therefore, urge you to fund the CDBG program in fiscal year
2005 at a level of at least $5 billion in formula grants.
Mr. Chairman, we are concerned and take strong exception to the
Office of Management and Budget's characterization of the Community
Development Block Grant (CDBG) Program as ``ineffective'', as stated in
the administration's fiscal year 2005 budget request. OMB reached this
conclusion through application of its Performance Assessment Rating
Tool (PART). In the PART review of the CDBG program, it appears that
OMB chooses to interpret the statute and facts in order to support a
dogmatic agenda and avoids acknowledgment of any positive achievements
from the more than $105 billion in CDBG funds spent by cities, counties
and States since 1975 on their most pressing affordable housing,
community and economic development needs over the 30 years of the
program. We urge you to reject it out of hand.
HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM
The HOME Investment Partnerships (HOME) Program is also an
effective block grant program with a very impressive track record of
providing rental housing and homeownership opportunities to low- and
moderate-income households. According to cumulative HUD data, the
program has helped to develop or rehabilitate over 785,553 affordable
housing units. The majority of HOME funds have been committed to
housing that will be occupied by very low-income people and a
substantial amount will assist families with incomes no greater than 30
percent of median. As of the end of February 2004, more than 81 percent
of HOME assisted rental housing was benefitting families at or below 50
percent of area median income. And more than 56 percent of all HOME
assisted rental housing (including tenant-based rental assistance) was
helping families with incomes at or below 30 percent of area median
income.
HOME funds also help low- and very low-income families realize the
dream of homeownership by providing for construction and rehabilitation
of housing as well as providing the down payment and or closing cost
assistance. As of February 2004, the program has assisted 296,197
families in becoming first-time homebuyers. HOME fund also allows
existing low- and moderate-income persons to stay in their homes by
providing rehabilitation assistance. Since 1992, HOME funds have been
used to rehabilitate 151,920 existing homeowner units.
Moreover, HOME is cost effective and provides the gap financing
necessary to attract private loans and investments to projects. For
each HOME dollar, $3.01 of private and other funds has been leveraged
since the program's inception. This clearly illustrates the effective
and judicious use of HOME funds by participating jurisdictions.
We, therefore, urge you to fund the HOME program in fiscal year
2005 at a level of at least $2.25 billion in formula grants. In
addition, we support $200 million in funding for the American Dream
Downpayment Initiative, which was enacted by Congress last session and
which is administered by HOME participating jurisdictions.
Unfortunately, Congress did not provide an administrative fee for
jurisdictions to operate the program. We urge Congress to provide an
administrative fee of 10 percent for the program in fiscal year 2005.
HOMEOWNERSHIP
We applaud the administration's efforts to promote homeownership
for low-income families. Homeownership provides citizens with a stake
in their communities, and increases the stability and vitality of
neighborhoods. As representatives of local elected officials and
practitioners, we support the concepts of providing housing counseling
for new and prospective homeowners, as well as a homeownership tax
credit that would help offset the costs of developing more affordable
housing. These same concepts may also provide opportunities to
revitalize distressed communities and increase our members' ability to
leverage public dollars with private resources.
SECTION 108 AND BROWNFIELDS
We have serious concerns about the administration's decision to
zero out several important economic development tools in the fiscal
year 2005 budget proposal, including the Section 108 loan guarantee
program and the Brownfields Economic Development Initiative (BEDI)
program. These programs fund much-needed investment in our communities,
helping to create jobs and reclaim contaminated sites that can be made
productive again. The Section 108 program provides communities with a
source of financing for economic development, housing rehabilitation,
public facilities, and large-scale physical development projects. We
are seeking at least $7.325 million in credit subsidy funding for
Section 108, the same level approved for the program in fiscal year
2004. We are seeking $50 million for BEDI in fiscal year 2005 and ask
Congress to de-couple the BEDI program from Section 108 so that
communities can compete for BEDI funds without having to first secure a
Section 108 loan guarantee.
HOMELESS HOUSING FUNDING
Mr. Chairman, we support a funding level of $1.27 billion for
homeless housing programs as proposed by the Bush Administration. We
support legislation that would convert the McKinney Act's homeless
housing programs into a pure, formula-driven block grant program, like
the CDBG and HOME block grant programs. In order for such a program to
give sufficient funds to communities to carry out meaningful projects
at the local level, it needs an appropriation close to $1.3 billion. We
support the existing Continuum of Care planning process and would
recommend that this process be codified as part of the block grant. We
also urge full funding of the Shelter Plus Care contract renewals. We
also support the administration's proposed $50 million Samaritan
Initiative. This initiative is intended to address the most pressing
homeless issue--chronic homelessness--and is to be a coordinated effort
with the Department of Health and Human Services and the Veterans
Affairs and the Interagency Council on Homelessness.
SECTION 8
Mr. Chairman, we commend the subcommittee and the Congress for
fully funding all expiring tenant-based and project-based rent subsidy
contracts in fiscal year 2004. We urge Congress to do the same this
year. The need for affordable housing continues to grow as housing
prices increase faster than wages for low-income Americans.
We oppose the administration's cut in the Section 8 voucher
program. The budget request falls short by $1.6 billion needed to fully
fund all vouchers now in use. Approximately 250,000 low-income families
could lose their vouchers. An analysis by the Low Income Housing
Coalition of the American Housing Survey revealed that 31 percent of
all households had housing problems in 2001. A reduced voucher program
would surely add to the critical need for low-income housing
assistance.
We are also concerned about the administration's proposed Flexible
Voucher Program. While we agree that revisions are needed to the
Section 8 program so as to reduce and contain program costs that could
threaten other housing and community development programs, we are
opposed to the elimination of long-standing rules that benefit low
income families. Moreover, it is difficult to believe that a lump sum
of funds to PHAs would be adequate to serve all vouchers holders.
HOPE VI
Once again the President's budget proposes to zero out the HOPE VI
program. We oppose this recommendation. The HOPE VI program eliminates
distressed public housing and replaces it with mixed-income
developments. It harnesses the private sector, working in partnership
with public housing agencies. This 10-year-old grant program has
generated billions of dollars in community investment and revitalized
neighborhoods over the Nation. Since 1993, $5.6 billion has been
awarded to revitalize 193 public housing developments which have
leveraged an additional $9 billion in investments.
LEAD HAZARD REDUCTION
We thank Congress for continuing to provide funding for lead hazard
reduction. We ask that the Lead Hazard Reduction Demonstration Program
be funded in fiscal year 2005 at $50 million, the approximate level as
fiscal year 2004. This small program provides needed assistance to
local governments in eradicating lead hazards from low-income housing
units.
CONCLUSION
Mr. Chairman, local government officials believe that a strong
Federal role in housing and community development programs must
continue. Since the Housing Act of 1937, Congress has enunciated, and
repeated in subsequent housing acts, that, as a matter of national
policy, the Federal Government has an obligation to assist States and
local governments in providing decent, safe and sanitary housing for
lower income households. Perhaps, Congress said it best in a
``Declaration of National Housing Policy'' included in Section 2 of the
Housing Act of 1949:
``The Congress hereby declares that the general welfare and
security of the nation, and the health and living standards of its
people, require housing production and related community development
sufficient to remedy the serious housing shortage, the elimination of
substandard and other inadequate housing through the clearance of slums
and blighted areas, and the realization as soon as feasible, of the
goal of a decent home and suitable living environment for every
American family.''
We submit to you that, while progress has been made toward this
goal, it has not been fully achieved. The Federal Government must
continue its commitment to this National Housing Policy, backed by the
necessary resources with which to continue the battle against
neighborhood deterioration and a decaying housing stock.
Mr. Chairman, we look forward to working with you and the
subcommittee in adequately funding HUD's housing and community
development programs for fiscal year 2005.
Thank you.
______
Prepared Statement of the American Public Power Association
The American Public Power Association (APPA) is the national
service organization representing the interests of over 2,000 municipal
and State-owned utilities in 49 of the 50 States (all but Hawaii).
Collectively, public power utilities deliver electricity to 1 of every
7 electric consumers (approximately 40 million people), serving some of
the Nation's largest cities. However, the vast majority of APPA's
members serve communities with populations of 10,000 people or less.
We appreciate the opportunity to submit this statement outlining
our fiscal year 2005 funding priorities within the VA-HUD
Subcommittee's jurisdiction.
ENVIRONMENTAL PROTECTION AGENCY: ENERGY STAR PROGRAMS
Energy Star is a voluntary partnership program pairing EPA with
businesses and consumers nationwide to enhance investment in
underutilized technologies and practices that increase energy
efficiency while at the same time reducing emissions of criteria
pollutants and greenhouse gases. In particular, APPA member systems
across the country have been active participants in a subset of the
Energy Star program called ``Green Lights.'' The Green Lights program
encourages the use of energy efficient lighting to reduce energy costs,
increase productivity, promote customer retention and protect the
environment.
According to the EPA, Energy Star is saving businesses,
organizations, and consumers more than $9 billion a year, and has been
instrumental in the more widespread use technological innovations like
LED traffic lights, efficient fluorescent lighting, power management
systems for office equipment, and low standby energy use.
Because this program has such broad benefits, APPA urges the
subcommittee to consider a substantial increase above the
administration's request of $16.1 million for fiscal year 2005.
ENVIRONMENTAL PROTECTION AGENCY: LANDFILL METHANE OUTREACH PROGRAM
The Landfill Methane Outreach Program (LMOP) helps to partner
utilities, energy organizations, States, tribes, the landfill gas
industry and trade associations to promote the recovery and use of
landfill gas as an energy source. According to the EPA, LMOP has more
than 345 organizations that have signed voluntary agreements to work
with EPA to develop cost-effective landfill gas (LFG) projects,
including every major LFG project development company. The program has
also developed detailed profiles for over 1,300 candidate landfills in
31 States, and has data for more landfills in all States.
Landfill gas is created when organic waste in a landfill
decomposes. This gas consists of about 50 percent methane and about 50
percent carbon dioxide. Landfill gas can be captured, converted, and
used as an energy source rather than being released into the atmosphere
as a potent greenhouse gas. Converting landfill gas to energy offsets
the need for non-renewable resources such as coal and oil, and thereby
helps to diversify utilities' fuel portfolios and to reduce emissions
of air pollutants from conventional fuel sources.
As units of local and State governments, APPA's member utilities
are uniquely poised to embark on landfill-gas-to-energy projects. EPA's
LMOP facilitates this process by providing technical support and access
to invaluable partnerships to our members and the communities they
serve.
APPA appreciates the administration's request of $2.6 million for
fiscal year 2005 as it reflects a small increase from the fiscal year
2004 budget request and mirrors the fiscal year 2004 allocation by
Congress. We would urge the subcommittee to again consider an
allocation for this program over and above the administration's request
given the ``bang for the buck'' that LMOP initiatives have facilitated.
COUNCIL ON ENVIRONMENTAL QUALITY
APPA supports the administration's request of $3.284 million for
fiscal year 2005 for the White House's Council on Environmental Quality
(CEQ). Public power utilities have experienced a general lack of
consistency in Federal Government regulation, particularly involving
environmental issues. While additional layers of government should be
avoided, a central overseer can perform a valuable function in
preventing duplicative, unnecessary and inconsistent regulation. CEQ is
responsible for ensuring that Federal agencies perform their tasks in
an efficient and coordinated manner.
Again, we appreciate your consideration of our priorities for the
VA-HUD Subcommittee's fiscal year 2005 appropriations.
______
Prepared Statement of the American Society of Plant Biologists
Thank you, Mr. Chairman for this opportunity to submit testimony on
behalf of the American Society of Plant Biologists (ASPB). My name is
Mary Lou Guerinot. I am President of ASPB and professor at Dartmouth
College, Biological Science Department.
Founded in 1924, ASPB represents nearly 6,000 plant scientists. The
largest segment of ASPB members conducts research at universities in
each of the 50 States. ASPB membership also includes scientists at
government and commercial laboratories.
The National Science Foundation (NSF) funds research in new
frontiers of scientific inquiry and contributes to creating a highly
skilled workforce. The fundamental breakthroughs that have led to new
technologies including biotechnology, nanotechnology and information
technology led to new industries for America's economy and workers.
Support by the subcommittee for fundamental research supported by
the National Science Foundation and its Directorate for Biological
Sciences leads to discoveries that benefit society, the economy and the
environment. Fundamental plant biology research contributes to
introduction of new technologies. New technologies, such as plant
biotechnology, have lead to enhanced plant production and new methods
of protecting and preserving limited environmental resources, such as
fresh water supplies.
The Nation's capabilities in fundamental biology research in
plants, systematics, physiology, water relations, environmental stress
and other areas is dependent upon support from NSF and the NSF
Directorate for Biological Sciences.
The NSF Directorate for Biological Sciences has sponsored research
that NSF has identified as being among the 50 breakthroughs that have
had the most impact or influence on every American's life over the past
50 years. Five of these breakthroughs cited by NSF in plant biology
are:
--NSF-sponsored genomic research on the model plant Arabidopsis
thaliana. The entire genome sequence was completed well ahead
of schedule. Now that the sequence has been completed, NSF is
proceeding with the 2010 Project to determine the function of
every gene in this model plant.
--NSF-supported basic research provided a base of knowledge that will
lead to plants genetically modified to produce lifesaving
pharmaceuticals.
--Novel approaches were discovered that could be used to alleviate
allergic reactions to wheat products and other food-related
ailments. Hypo-allergenic foods are expected to result from
NSF-sponsored basic plant research.
--Up to 12 percent of soils under cultivation around the world
contain metals that stunt plant growth and development and
result in poor harvests. NSF-funded researchers are using
genetic engineering to engineer plants that flourish in metal-
rich soils.
--Almost one-third of the irrigated land on earth is not suitable for
growing crops because it is contaminated with high levels of
salt. More farmable land is lost annually through high salt
levels in soil than is gained through the clearing of forest
resources. Basic research supported by NSF will lead to more
salt-tolerant crops.
We mark the 51st anniversary this year of the discovery of the
structure of DNA by Watson and Crick. This discovery changed the course
of biology forever, leading to the age of molecular biology, genetic
engineering and now genomics.
Today, just as human genome research has advanced medical science,
the NSF-sponsored Plant Genome Research Program and biotechnology have
revolutionized the way scientists can improve plants. NSF-sponsored
genomic research on Arabidopsis, rice, corn and other plants is
providing valuable fundamental knowledge of plant structure and
functions. Resulting enhanced plants will be used to better provide
needed food supplies, renewable energy sources, industrial feed stocks,
clothing and building materials, and lifesaving medicines.
``Plant biology has been transformed completely over the last 50
years. It is now squarely in the age of genomics, and is constantly
changing as new concepts emerge and novel technologies develop,'' the
National Science and Technology Council, Committee on Science,
Interagency Working Group on Plant Genomes (IWG) noted in the January
2004 Progress Report on the National Plant Genome Initiative.
Recognizing the enormous scientific opportunities, the National Plant
Genome Initiative (NPGI) was established in 1997 under the National
Science and Technology Council and the Office of Science Technology and
Policy (OSTP).
Support led by Chairman Bond together with Ranking Member Mikulski
and this subcommittee for the Plant Genome Research Program has helped
place the United States in the forefront of plant genomics in the
world. Examples of research results from the Plant Genome Research
Program that the IWG noted were reported the past year include:
--Construction of a high resolution maize map that integrates genetic
and physical maps: a culmination of 5 years of hard work that
will benefit both basic researchers and breeders.
--Identification of the full encyclopedia of genes necessary for
mineral nutrition in plants, that forms the foundation for
understanding the mechanism of plant uptake of both beneficial
and toxic minerals.
--Development of the marker-assisted breeding strategies for wheat.
--Establishment of a comparative cereal genomics database, Gramene,
which uses the complete rice genome sequence as a reference and
serves as the information resource for the entire cereal
research community including maize, wheat, barley and sorghum.
--Active involvement of plant genome researchers in education and
training of undergraduates, high school students and K-12
teachers.
--Research collaboration between U.S. scientists and scientists in
developing countries in plant genomics and related fields of
science.
Examples of new projects that the IWG noted should further advance
the field in coming years include:
--Building of resources and tools for plant genome research.
--Advances in nutritional genomics that will lead to higher quality
food products.
--Identification of networks of genes involved in disease resistance.
--A new comprehensive database for the entire plant genome research
community to provide seamless access to relevant information
resources that are distributed all over the world.
Plant genome research and research on the applications of plant
biotechnology, supported by this subcommittee have revolutionized the
way scientists can improve plants. This is essential to meeting the
growing national and world needs for food, renewable energy sources,
industrial feed stocks, clothing and building materials, and lifesaving
medicines.
Plant genome research sponsored by NSF that I am conducting in my
lab is addressing the area of metal transport and regulation of gene
expression by metals. I have focused on iron because increasing the
ability of plants to take up iron could have a dramatic impact on both
plant nutrition and human health. Iron deficiency afflicts an
astounding number of people with estimates that 3 billion people
worldwide suffer from iron deficiencies. Plants are the principal
source of iron in most diets. Fundamental research made possible by the
NSF Plant Genome Research Program is providing knowledge that could
lead to new varieties of food crops that would supply more iron needed
in diets of people throughout the world.
We commend the tireless efforts of Chairman Bond in traveling to
developing nations of the world to see first-hand the plight of human
nutritional deficiencies. The continued leadership of Chairman Bond,
Ranking Member Mikulski and the subcommittee for plant genome and
related research will help to alleviate ravages of nutritional
deficiencies here and abroad.
The leadership of this subcommittee has put NSF on the path of
substantial budget increases over recent years! We recognize that the
realities of this year's budget may make an increase of as much as 15
percent very difficult to attain. However, the continued strong support
by the subcommittee of NSF, including the NSF Directorate for
Biological Sciences and the Plant Genome Research Program is deeply
appreciated by our science community. Investment in world-leading,
competitively awarded basic research sponsored by NSF will continue to
help benefit the future of the Nation's security, economy, and workers.
Thank you again for the honor of addressing the subcommittee today.
______
Prepared Statement of the Ecological Society of America
As President of the Ecological Society of America, I am pleased to
provide written testimony for the Environmental Protection Agency
(EPA). The Ecological Society of America has been the Nation's premier
professional society of ecological scientists for nearly 90 years, with
a current membership of 8,000 researchers, educators, and managers. We
appreciate the opportunity to offer written testimony on behalf of the
Environmental Protection Agency.
EPA's dual mission to safeguard human health and the environment
depends upon the agency's intramural and extramural research programs,
both of which would suffer significant cuts under the President's
proposed budget for fiscal year 2005. As the Nation continues to face a
host of environmental challenges, we believe shortchanging EPA's
science and technology programs will compromise the agency's ability to
perform its mission.
In particular, the Ecological Society of America is concerned about
proposed cuts to the agency's STAR Grants Program. Managed by the
agency's Office of Research and Development, this competitive, peer-
reviewed, extramural grants program generates scientific information
that supplements the agency's intramural research programs and better
equips EPA to respond to emerging issues. The proposed fiscal year 2005
budget would slash this valuable program by $35 million, in spite of
its excellent track record and recent laudatory review by the National
Academy of Sciences. ``The Measure of STAR: Review of the U.S.
Environmental Protection Agency's Science to Achieve Results (STAR)
Research Grants Program,'' points out that STAR grants fill a critical
gap in the agency's in-house scientific expertise and enhance EPA's
ability to respond to new issues. The Ecological Society of America
encourages Congress to fund the STAR Grants Program at its fiscal year
2004 level of $100 million.
Another area of concern is the EPA's STAR Fellowship Program, which
would decline by 40 percent ($4 million) under the agency's proposed
budget for the coming fiscal year. This program, which is the only one
of its kind, funding graduate students conducting applied environmental
research, has also had an excellent track record since its inception in
1995. An extremely competitive program--only 7 percent of applicants
are awarded fellowships--the program has produced high quality research
and is helping to train the next generation of environmental
scientists. The Ecological Society of America appreciates the past
support of this committee in restoring previous cuts to the STAR
Fellowship Program and we hope committee members will do so again for
fiscal year 2005, funding the Program at its current level of $10
million.
In addition to these extramural programs, we are also concerned
about the proposed cuts to the agency's intramural Science and
Technology account and urge the committee to bring this account to the
fiscal year 2004 level.
We appreciate the committee's past support of EPA's research
programs and the opportunity to provide our comments on its proposed
budget. Thank you for considering our testimony.
______
Prepared Statement of the Doris Day Animal League
Chairman Bond, Ranking Member Mikulski, and members of the
subcommittee, the Doris Day Animal League represents 350,000 members
and supporters nationwide who support a strong commitment by the
Federal Government to research, development, standardization,
validation and acceptance of non-animal and other alternative test
methods. Thank you for the opportunity to present testimony relevant to
the fiscal year 2005 budget request for the U.S. Environmental
Protection Agency's (EPA) Science and Technology budget for the Office
of Research and Development (ORD).
In 2000, the passage of the ICCVAM Authorization Act into Public
Law 106-545, created a new paradigm for the field of toxicology. It
requires Federal regulatory agencies to ensure that new and revised
animal and alternative test methods be scientifically validated prior
to recommending or requiring use by industry. An internationally agreed
upon definition of validation is supported by the 15 Federal regulatory
and research agencies that compose the Interagency Coordinating
Committee for the Validation of Alternative Methods (ICCVAM), including
the EPA. The definition is: ``the process by which the reliability and
relevance of a procedure are established for a specific use.''
In recent years, thanks to the leadership of Chairman James Walsh
and Representative David Price, efforts to provide specific funding for
and prioritization of research, development and validation of non-
animal and other alternative test methods has helped to guide EPA's
approach to this necessary thrust for sound science that replaces,
reduces or refines the use of animals in toxicity testing. However,
recent dialogue with the EPA has demonstrated a lack of prioritization
for funding actual validation studies of non-animal and other
alternative methods. This is the equivalent of developing a new car
that is intended to provide reduced emissions without assessing the
validity of the reduced emissions claim, ensuring the car will never be
marketed.
For several years, the enacted budget for the Office of Research
and Development has hovered at approximately $500 million, comprising
just 9 percent of EPA's total budget. Animal protection organizations
have consistently supported a mere 1-2 percent of this budget
specifically for research, development and validation of non-animal,
alternative test methods. Chairman Walsh secured a $4 million
appropriation first-ever directive for research, development and
validation of non-animal test methods in the fiscal year 2002 budget
for EPA. And while the animal protection community is greatly
appreciative of this first-ever directive, we have yet to receive a
detailed accounting of the expenditure of funds. The agency has stated
that funding has been provided for bench science that may have future
relevant applications. EPA contends it has used monies from the Science
and Technology Account for the Office of Research and Development to
fund research and development of non-animal and other alternative test
methods; but the funding stops at the stage when a test method must be
scientifically validated in order to be considered for incorporation
into recommendations or requirements. Unfortunately this approach does
little to support the final development or necessary validation studies
for non-animal test methods with potential current application in
existing EPA programs.
We request that the subcommittee support the inclusion of $1
million specifically for validation studies for non-animal and other
alternative test methods; with non-animal methods prioritized. In
addition, we request the following report language be included in bill:
``The Committee encourages the agency to prioritize research,
development, standardization and validation of non-animal and other
alternative screening and testing methods which have potential to
reduce, refine or replace animal studies. The Committee also directs
the agency to provide $1 million from within the existing Science and
Technology Account specifically for validation of non-animal and other
alternative test methods, including prioritizing those that replace
animal-based eye irritation methods, embryotoxicity, carcinogenicity
and acute toxicity for mammals and fish, for which the scientific
review of the validation status will be conducted under the auspices of
the Interagency Coordinating Committee on the Validation of Alternative
Methods. Any such activities should be designed in consultation with
EPA's Office of Pollution Prevention and Toxic Substances to ensure
integration of scientifically valid non-animal and other alternative
test methods into existing and future programs. The Committee directs
the agency to provide a report to the Committee by March 30, 2005
regarding expenditures of fiscal year 2005 funds for research,
development and validation of non-animal and other alternative
methods.''
SKIN CORROSION, SKIN ABSORPTION AND SKIN IRRITATION--NON-ANIMAL TEST
METHODS
``Human skin equivalent'' tests such as EpiDermTM and
EpiSkinTM have been scientifically validated and accepted in
Canada, the European Union, and by the Organization for Economic
Cooperation and Development (OECD), of which the United States is a key
member, as total replacements for animal-based skin corrosion studies.
Another non-animal method, CorrositexTM, has been approved
by the U.S. Interagency Coordinating Committee on the Validation of
Alternative Methods. Various tissue-based methods have been accepted in
Europe as total replacements for skin absorption studies in living
animals. In fact, in 1999 the EPA itself published a proposed rule for
skin absorption testing using a non-animal method that, as of this
writing, has still not been finalized. Government regulators in Canada
accept the use of a skin-patch test in human volunteers as a
replacement for animal-based skin irritation studies (for non-corrosive
substances free of other harmful properties).
However, the EPA continues to require the use of animals for all
three of these endpoints, despite the availability of the non-animal
tests. In order to assess the progress of the EPA in implementing the
non-animal replacements for these three endpoints, we concur with our
colleagues at People for the Ethical Treatment of Animals and
respectfully request that the subcommittee include the following report
language:
``The Administrator of the EPA is required to report to Congress no
later than December 1, 2004, regarding the use of
CorrositexTM and `human skin equivalent' tests such as
EpiDermTM and EpiSkinTM for skin corrosion
studies, in vitro methods using skin from a variety of sources (e.g.
human cadavers) for skin absorption studies, and human volunteer
clinical skin-patch tests (for chemicals first determined to be non-
corrosive and free of other harmful properties) for skin irritation
studies. The Administrator should describe the reasons for which the
agency has delayed accepting the aforementioned methods for regulatory
use as total replacements for their animal-based counterparts, exactly
what steps the agency is taking to overcome those delays, and a target
date by which the agency intends to accept these methods for regulatory
use.''
SUMMARY
While significant progress has been made in nearly every other
scientific discipline, the field of toxicology has remained wedded to
antiquated methods dating from the mid-20th century. The United States
must provide a marked investment in sound science that reflects the
humane ethic espoused by the majority of Americans. Only by ensuring
that Federal regulatory agencies fund research, development and
validation of non-animal and other alternative test methods can the
number of methods accepted on the basis of scientific merit
exponentially increase. And in cases where scientific validity is
demonstrated and non-animal and other alternative methods are
incorporated into European Union, Canadian or OECD guidelines, the
United States should expedite its own acceptance of the methods.
______
Prepared Statement of the American Indian Higher Education Consortium
This statement focuses on three areas: Department of Housing and
Urban Development, National Science Foundation, and National
Aeronautics and Space Administration.
Mr. Chairman and members of the subcommittee, on behalf of this
Nation's 34 American Indian Tribal Colleges and Universities (TCUs),
which compose the American Indian Higher Education Consortium (AIHEC),
thank you for the opportunity to express our views and requests for
fiscal year 2005.
SUMMARY OF REQUESTS
Department of Housing and Urban Development (HUD)
Since fiscal year 2001, a modest TCU initiative has been funded
within the Community Development Block Grant program. This competitive
program enables tribal colleges to build, expand, renovate, and equip
their facilities available to and used by the larger community. We
strongly urge the subcommittee to support this program at a minimum $5
million, an increase of $2 million over the President's fiscal year
2005 budget request.
National Science Foundation (NSF) Programs
Tribal Colleges and Universities Program (TCUP).--Since fiscal year
2001, this program has provided important assistance to TCUs as they
build their capacity to provide strong science, technology,
engineering, and mathematics (STEM) teaching and learning programs for
American Indians. As of fiscal year 2003, 13 of the 32 eligible TCUs
have been awarded implementation grants, along with four Alaska Native
and Native Hawaiian serving institutions, and five new awardees are
expected in fiscal year 2004. As more than half of the eligible TCUs
have yet to receive grant awards, we request that Congress expand this
vital program to $15 million, a $5 million increase over fiscal year
2004 to help increase the number of TCUs able to participate and to
support funding of Alaska Native and Native Hawaiian serving
institutions, which NSF includes in the TCU program and funds to a
significant extent. Additionally, we seek report language clarifying
that for any provision of technical assistance under this program,
eligible organizations are defined as national and regional non-profit
organizations comprised of TCUs; and further language requiring Science
and Technology Centers and EPSCoR Institutions to develop and implement
plans to effectively collaborate with Tribal Colleges and Universities
in education and research activities.
Advanced Networking with Minority Serving Institutions (AN-MSI).--
In fiscal year 1999, NSF funded a project to help MSIs develop campus
infrastructures and national connections necessary to participate in
the Internet-based Information Age. The project involves an historic
and successful collaboration between three minority communities and
mainstream institutions, which had little or no prior experience
working together. AN-MSI has developed a successful model for providing
support and technical assistance and is working with tribal colleges on
collaborative education and research projects. AN-MSI's funding expires
in fiscal year 2004, and if new funding is not secured, the project's
work will cease. We request that the subcommittee include funding
within NSF's CISE directorate to continue and expand the AN-MSI program
at $15 million over the next 5 years.
National Aeronautics and Space Administration (NASA)
In fiscal year 2001, the tribal colleges established a formal
cooperative agreement with NASA for a project designed to increase
access, participation, and success of American Indians in high quality
K-16 science, technology, engineering, and mathematics programs. The
agreement includes a TCU liaison between AIHEC and NASA to oversee
implementation of the project and modest program enrichment grants to
the colleges. We request that Congress include report language
encouraging NASA to continue and expand its successful $1.2 million
cooperative agreement on behalf of TCUs; clarifying that for any
provision of technical assistance under this program, eligible
organizations are defined as national and regional non-profit
organizations comprised of TCUs; and encouraging NASA faculty exchange
programs and IPA contracts with TCUs to provide needed on-site
expertise and partnerships. Additionally, we seek further report
language encouraging the development of new initiatives to address the
technology infrastructure needs at the TCUs, and further language to
require Space Grant and EPSCoR Institutions to develop and implement
plans to effectively collaborate with Tribal Colleges and Universities
in education and research activities.
BACKGROUND
As a group, Tribal Colleges and Universities are this Nation's
youngest institutions of higher education. The first tribal college--
Navajo Community College (now Dine College) in Tsaile, Arizona--was
established in 1968. Over the next few years, a succession of tribal
colleges followed, primarily in the Northern Plains. In 1972, the first
six tribally controlled colleges established AIHEC to provide a support
network for member institutions. Today, AIHEC represents 34 TCUs
located in 12 States. Annually, these institutions serve approximately
30,000 full- and part-time American Indian students from more than 250
federally recognized tribes. Yet in comparison with other institutions,
TCUs benefit from only a handful of dedicated programs and receive only
a very small portion of overall Federal higher education funding.
The vast majority of TCUs is accredited by independent, regional
accreditation agencies and like all institutions of higher education,
must undergo stringent performance reviews on a periodic basis. In
addition to associate, bachelor, and master's degree programs, TCUs
provide much needed high school completion (GED), basic remediation,
job training, adult education, and vitally needed community-based
continuing education programs. Tribal colleges function as community
centers; libraries; tribal archives; career and business centers;
economic development centers; public meeting places; and child care
centers. Each TCU is committed to improving the lives of students
through higher education and community programs and to moving American
Indians toward self-sufficiency.
TCUs provide access to higher education for American Indians and
others living in some of the Nation's most rural and economically
depressed areas. These institutions, chartered by their respective
tribal governments, combine traditional teachings with conventional
postsecondary courses and curricula. They have developed innovative
means to address the needs of tribal populations and are successful in
overcoming long standing barriers to higher education for American
Indians. Over the past three decades, these institutions have come to
represent the most significant development in the history of American
Indian education, providing access to underrepresented students and
promoting achievement among students who may otherwise never have known
postsecondary education success.
Despite their remarkable accomplishments, TCUs remain the most
poorly funded institutions of higher education in the country.
Chronically inadequate operations funding continues to be the most
significant barrier to their success. Funding for the basic
institutional operations of 26 reservation-based TCUs is provided
through Title I of the Tribally Controlled College or University
Assistance Act (Public Law 95-471), which was first funded in 1981.
Today, 23 years later these colleges are operating at $4,230 per full-
time Indian student count (ISC), just 70 percent of the authorized
level of $6,000 per ISC. Additionally, TCUs are located on Federal
trust territories, and therefore States have no obligation to fund them
even for the non-Indian State-resident students who account for
approximately 20 percent of TCU enrollments. Yet, if these same
students attended any other public institution in the State, the State
would provide basic operating funds to the institution.
As a result of more than 200 years of Federal Indian policy--
including policies of termination, assimilation and relocation--many
reservation residents live in abject poverty comparable to that found
in Third World nations. Through the efforts of TCUs, American Indian
communities receive services they need to reestablish themselves as
responsible, productive, and self-reliant.
JUSTIFICATIONS
Department of Housing and Urban Development
We are pleased that the President's fiscal year 2005 budget request
includes $3 million for HUD-TCU program funded under the Community
Development Block Grant program. This competitive grants program
enables tribal colleges to expand their roles and effectiveness in
addressing development and revitalization needs in their respective
communities. No academic or student support projects are funded through
this program; rather, funding is available only for community-based
outreach and service programs at TCUs. Over the past few years, a
handful of tribal colleges have been able to build or enhance child
care centers, social service offices; help rehabilitate tribal housing;
establish and expand small business development; and enhance vitally-
needed library services.
The number of TCUs is continuing to grow. Two additional colleges
have joined our ranks, Saginaw Chippewa Tribal College in Michigan and
Tohono O'odham Community College in Arizona. We strongly urge the
subcommittee to support this program at a minimum $5 million, an
increase of $2 million over the President's fiscal year 2005 budget
request, to help ensure that much needed community services and
programs are expanded and continued.
National Science Foundation Programs
Tribal Colleges and Universities Technology Initiative.--In fiscal
year 2001, NSF launched a new TCU initiative designed to enhance the
quality of science, technology, engineering and mathematics (STEM)
instruction and outreach programs, with an emphasis on the leveraged
use of information technologies at TCUs. The program enables colleges
to implement comprehensive institutional approaches to strengthen
teaching and learning in ways that improve access, retention, and
completion of STEM programs, particularly those that have a strong
technological foundation. Through this program, colleges gain support
for their efforts to bridge the ``digital divide'' and prepare students
for careers in information technology, science, mathematics, and
engineering fields. The overall goals of the program are to improve
access, retention, and graduation rates among American Indian students
and to increase the number of American Indians in the information
technology, science, mathematics and engineering workforce. In 3 years,
13 of the 32 eligible TCUs have received implementation grants, along
with four Alaska Native and Native Hawaiian serving institutions, with
five additional grants expected to be awarded in fiscal year 2004. We
request that Congress expand this vital program to $15 million, $5
million above the President's budget request. This level more
accurately reflects the true needs of the eligible pool, which NSF
significantly expanded when it included Alaska Native and Native
Hawaiian serving institutions in the TCU program. Additionally, we seek
report language clarifying that for any provision of technical
assistance under this program, eligible organizations are defined as
national and regional non-profit organizations comprised of TCUs; and
further language requiring Science and Technology Centers and EPSCoR
Institutions to develop and implement plans to effectively collaborate
with Tribal Colleges and Universities in education and research
activities.
Advanced Networking with Minority Serving Institutions (AN-MSI).--
Five years ago, NSF funded a project within its Computer and
Information Science and Engineering (CISE) Directorate to help
minority-serving institutions (MSIs) develop the campus infrastructure
and national connections necessary to participate in the emerging
Internet-based Information Age. The project involves an historic and
successful collaboration between three minority communities and
mainstream institutions, which had little or no prior experience
working together. AN-MSI has developed a successful model for providing
TCUs and other MSIs with technical assistance, education, and training
programs to improve campus-based information and communications systems
and strengthen IT staff. While much has been accomplished, TCUs are at
the beginning stages of technology use, particularly for collaborative
education and research. AN-MSI's funding expires in fiscal year 2004,
and if new funding is not secured, the project's work will cease. We
request that Congress allocate $15 million for this initiative over the
next 5 years.
National Aeronautics and Space Administration (NASA)
In fiscal year 2001, TCUs established a formal cooperative
agreement with NASA for a project designed to increase access,
participation, and success of American Indians in high quality K-16
mathematics, science, engineering, and technology programs. The
agreement includes a TCU liaison between AIHEC and NASA to oversee
implementation of the project and modest program enrichment grants to
the colleges. We request that Congress include report language
encouraging NASA to continue and expand its successful $1.2 million
cooperative agreement on behalf of TCUs; clarifying that for any
provision of technical assistance under this program, eligible
organizations are defined as national and regional non-profit
organizations comprised of TCUs; encouraging NASA faculty exchange
programs and IPA contracts with TCUs to provide needed on-site
expertise and partnerships. Additionally, we seek further report
language encouraging the development of new initiatives to address the
technology infrastructure needs at the TCUs; and further language
requiring Space Grant and EPSCoR Institutions to develop and implement
plans to effectively collaborate with Tribal Colleges and Universities
in education and research activities.
CONCLUSION
In light of the justifications presented in this statement and the
overwhelming evidence of inequitable access to technology in rural
America, we respectfully request Congress increase funding for Tribal
College and University programs to help bring economic self-sufficiency
to Indian Country. Fulfillment of AIHEC's fiscal year 2005 request will
strengthen the missions of TCUs and the enormous, positive impact they
have on their respective communities. Your support will help ensure
that they are able to educate and prepare thousands of American Indians
for the workforce of the 21st Century. TCUs have proven to be very
responsible with the Federal support they have received over the past
three decades. It is important that the Federal Government now
capitalize on its investment. We respectfully request your continued
support of tribal colleges and full consideration of our fiscal year
2005 appropriations requests.
______
Prepared Statement of the Integrated Petroleum Environmental Consortium
It is proposed that the U.S. Environmental Protection Agency
continue to support a focused, university-based program, the Integrated
Petroleum Environmental Consortium (IPEC), with the goal of increasing
the competitiveness of the domestic petroleum industry through a
reduction in the cost of compliance with U.S. environmental
regulations. Continued Federal support of $2 million is specifically
requested as part of the fiscal year 2005 appropriation for the
Environmental Protection Agency through the Science and Technology
account or other source the subcommittee may determine to be
appropriate.
Mr. Chairman, on behalf of the Integrated Petroleum Environmental
Consortium (IPEC), I would like to take this opportunity to thank the
subcommittee for providing $8.2 million in funding for IPEC in the
fiscal year 1998-2004 appropriations bills for the Environmental
Protection Agency (EPA). Specifically this funding was provided for the
development of cost-effective environmental technology and technology
transfer for the domestic petroleum industry. With funding under the
Science and Technology account of EPA, IPEC is implementing a
comprehensive mechanism (EPA Research Center) to advance the
consortium's research expertise in environmental technology. IPEC's
operating practices and linkages to the independent sector are ensuring
that real problems in the domestic petroleum industry are addressed
with real, workable solutions. The consortium includes the University
of Tulsa, the University of Oklahoma, Oklahoma State University, and
the University of Arkansas.
We are pleased to report that, as envisioned and proposed by the
Consortium, State-level matching funds have been obtained to support
IPEC, creating a true Federal-State partnership in this critical area.
Since fiscal year 1998 the Oklahoma State Regents for Higher Education
have provided over $800,000 in matching funds for IPEC. Significant
matching funds have also been obtained from industry resulting in a
total match of $0.84 for every Federal dollar expended or encumbered to
date.
Mr. Chairman, IPEC's mission has never been more important than
today. As the United States imports more oil from politically unstable
regions of the world our Nation's domestic reserves and production
become ever more vital to the Nation's economy and our national
security. However, domestic production and our domestic infrastructure
are in decline as the major producers and refiners seek greater returns
for their stockholders overseas. The mature reservoirs that they found
to be no longer profitable have been taken over by the independent
producers. To their credit these independent producers together are
accounting for 85 percent of domestic wells drilled, 40 percent of
domestic oil production, and 65 percent of domestic natural gas
production. Although the price of oil is currently up, the instability
of world crude oil prices takes its toll on these entrepreneurs who
have only one source of income--the sale of oil and gas. They are
constantly caught in the squeeze between the cost of production and the
price they receive for their product. For example, when prices fell to
historic lows in 1998 and early 1999 the effect on the independent
producers was markedly worse than on the large integrated oil
companies. Capital expenditures fell 30 percent, rig counts dropped 50
percent, employment in exploration and production fell by 65,000, and
150,000 wells were shut-in (IPAA). As prices have recovered new capital
has been invested in exploration and production but now there is a
serious shortage of skilled employees. Once again the cycling of world
oil prices threatens the development of new resources and further
weakens our domestic infrastructure. The strategic value of this
industry demands that action be taken to preserve and expand this
critical component of our energy supply and reduce our dependence on
foreign oil. As Vice-President Cheney has said (May, 2001) ``to meet
our energy challenge we must put to good use the resources around us
and the talent within us''.
NEW TECHNOLOGIES
With the help and support of Congress IPEC has and will continue to
answer this call. IPEC works diligently to help independent producers
reduce their production costs and increase profitability in this
turbulent market. IPEC responds to the needs of the independents in two
ways. First, IPEC funds a vigorous research program to develop cost-
effective environmental technologies. Critical to the effectiveness of
IPEC is the process by which projects are chosen for funding. IPEC has
an Industrial Advisory Board (IAB) which is dominated by independent
producers. The IAB identifies the research needs of the domestic
industry which form the basis of Calls for Proposals issued to the IPEC
institutions. But their influence on the selection process does not
stop there. Investigators respond to the Call for Proposals with what
is termed a pre-proposal which contains enough information to identify
the problem to be addressed and the expected advantages of the proposed
research to the domestic industry. It is the IAB that evaluates these
pre-proposals for relevance to IPEC's mission. If the IAB believes that
the research proposed helps to solve a problem that makes a serious
dent in the independent's profitability it is approved. The Board has
established a benchmark of 80 percent of voting members for a pre-
proposal to be selected. Investigators whose pre-proposals are approved
by the IAB are invited to write a full, detailed technical proposal for
evaluation by a Science Advisory Committee (SAC) which will assess the
scientific quality of the proposal. The SAC is composed of nationally
recognized scientists and engineers from academia and government
laboratories. An investigator whose proposal passes this second hurdle
is funded by IPEC to do the research. By the way, any pre-proposal that
does not pass the IAB is dead in the water!
In addition to ensuring that project funding is industry driven and
on target this selection process has had the additional advantage of
creating a dialog between producers and the regulatory community that
serves the interest of both groups. The second largest group on the IAB
is composed of State regulatory agency personnel who serve on the Board
at the invitation of the independent producers. The discussion of
industry needs fostered by the review process has resulted in a more
collegial relationship between the regulators and those who are
regulated.
Mr. Chairman, I invite you to visit the IPEC website at http://
ipec.utulsa.edu to learn more about IPEC's funded research projects. On
the website you will learn how IPEC has significantly advanced the
scientific basis for risk-based decision making in the management of
hydrocarbon spills which allows precious remediation resources to be
directed to where they will do the most good. You will also find a
project which, while investigating the natural attenuation of complex
hydrocarbons mixtures, has actually pointed the way to how we may some
day convert unrecoverable oil to natural gas using microorganisms. You
will also see projects that are pioneering the use of plants to
remediate oil-impacted soil and reduce the costs of remediation of
brine spills on soil and restoring the productivity of damaged land.
Thanks to the IPEC Industrial Advisory Board all of these projects are
expected to reduce the cost of environmental compliance and the cost of
production and at the same time increase compliance.
EFFECTIVE TECHNOLOGY TRANSFER
IPEC also has an active technology transfer program which makes an
important contribution to the consortium's mission. Guided by the
Industrial Advisory Board IPEC has and will continue to develop tools
for independent producers to empower them to take control of resolving
their own environmental problems and reducing their cost of doing
business. One of the first tools produced by IPEC was a training video
entitled ``Cost Effective Environmental Strategies for Improving
Production Economics''. This video shows the producer how to do an
audit of their oil or gas production facilities to help them keep more
product in the sales line and more money in their pocket. Producers are
shown that by being proactive they can minimize remediation costs, stay
out of trouble with the regulatory agencies, reduce future liability,
and increase the value of their lease. Over 3,000 of these videos have
been distributed free of charge and the reviews are outstanding.
Environmental Health and Safety officers of some of the larger
independent oil companies have remarked that it is the best training
video of its kind available. IPEC has also produced a training video on
the bioremediation of oil spills and a video on remediation of brine
spills will be released this year. Production will start soon on
additional training videos on the remediation of joint spills of oil
and brine, emergency response procedures, and on money-saving how-to
tips from the IPEC Industrial Advisory Board.
Other tools include a self-assessment checklist to help producers
identify problems that are going to cause them problems and cost them
money if not fixed. Again the goal is to help them be proactive and
take control of their production costs. IPEC also seeks to empower
independent producers to be able to remediate small spills of oil and
brine when they occur without spending a lot of money on soil analysis
or high-priced consultants. Of course the training videos help in this
regard but we don't stop there. IPEC works with industry organizations
and State agencies like the Oklahoma Marginal Well Commission to offer
1-day training workshops on remediation of oil and brine spills. For
oil spills IPEC shows the producers how to be effective at
bioremediation of oil spills without having to do TPH analysis and at a
minimal cost. IPEC also produces a laminated card for producers to
carry around in their trucks that provides easy to follow, step-by-step
instructions with photos on how to carry out the bioremediation
process. IPEC has also developed a staged response to brine spills that
reduces costs while effectively remediating these spills and at the
same time more effectively restores the productivity of the impacted
land. To assist the producer in brine remediation IPEC has developed a
Soil Salt Analysis Kit and a Water Analysis Kit which are distributed
free of charge to independent producers. The kits come with laminated
cards with photo instructions on how to use the kits and how to
interpret the results. With this field kit producers can follow the
progress of the remediation and restoration process and identify ``hot
spots'' which need extra attention without the expense of a lot of
analytical costs. With these kits producers can determine soil chloride
concentrations and relate the results of analyses to plant salt
tolerances. This allows the producer to effectively communicate with
the regulatory field inspectors and determine what plants could be
grown on the site at various stages of restoration. IPEC has also
recently contracted with the Railroad Commission of Texas to bring
their popular workshop on Waste Minimization in E&P Operations to
Oklahoma and Arkansas.
In a program unique in the oil industry IPEC uses the field agents
of State regulatory agencies to deliver these tools into the hands of
the producers. Although IPEC tries as much as possible to bring
training to the producers by offering the soil remediation and waste
minimization workshops in their back yard, many of the smallest
producers cannot afford to be away from their business for a training
workshop. However, these producers see their field inspectors on a
regular basis. In order to take advantage of this relationship IPEC
holds training workshops for these field inspectors introducing them to
all of the latest IPEC tools and establishes with them a tracking
mechanism to determine where the tools are going and allowing us to
follow up to assess the effectiveness of these tools. This has proven
to be an effective mechanism for distribution of IPEC tools to these
small producers. As a bonus the producers see the field inspectors in a
helpful role. One of the goals of IPEC's technology transfer program is
to foster the feeling among small producers that field inspectors
should be seen as a member of their team and a valuable source of
information.
IPEC's technology transfer program also includes some of the more
traditional elements such as a website, newsletter and annual
conference. On the website producers can follow the progress of IPEC
sponsored projects, learn about upcoming training events and tools,
read the proceedings of IPEC's annual conference, and access other
useful information. The newsletter is called ``The Connector'' and is
published quarterly. Each issue features a cover story on new
technology for petroleum environmental problems. Other articles cover
new regulations, anticipated regulatory changes, and announcements for
upcoming events of interest to the domestic industry. Anyone can
subscribe to ``The Connector'' free of charge or look for the latest
issue on the IPEC website.
IPEC's annual conference, the International Petroleum Environmental
Conference, is fast becoming the premier event of its kind and focuses
on environmental issues and solutions in oil and gas production and
refining. Cosponsored by the U.S. Department of Energy National
Petroleum Technology Office, the conference annually attracts about 350
participants, 60 percent of who come from industry, 20 percent from
State and Federal regulatory agencies, and 20 percent from academia.
The next IPEC conference, the eleventh, will be held in Albuquerque,
NM, October 12-15, 2004. Check out the proceedings of previous
conferences on the consortium website and look at the conference
website at http://ipec.ens.utulsa.edu for the current Call for Papers
and the program for the eleventh conference.
IPEC MAKES A DIFFERENCE
With the help and support of the industry and Congress IPEC is
making a real difference in the domestic petroleum industry. We have
kept faith with our supporters and Congress and are delivering on all
of the promises and pledges we made during our campaign for funding. We
are especially proud of the fact that as noted above to date IPEC has
obtained matching funds from the industry and State governments of
$0.84 for every Federal dollar expended or encumbered. IPEC is truly a
Federal-State-industry partnership that works!
IPEC underwent a site review in May, 2002 by an EPA review panel.
IPEC passed the review with flying colors. IPEC was especially
commended for the Center's enthusiasm for its mission, the relevancy of
the Center's research projects to that mission, the Center's management
practices, the diversity of constituencies from whom we seek input, and
the aggressiveness of the Center's technology transfer program. In fact
IPEC's technology transfer program was termed by the review panel as
``tech transfer par excellence''. The chair of the review panel told us
informally ``I give most EPA Research Centers a 5, I give IPEC an 8''.
FUNDING OF IPEC
Mr. Chairman, the EPA site review panel was so enthusiastic about
IPEC they suggested that we make an effort to expand to other oil and
gas producing States, bring in other academic institution as partners
and consortium members, and expand the range of research projects we
are working on to further benefit the domestic industry. We could not
agree more with these goals but this will require additional resources.
Therefore, IPEC is seeking appropriations of $2 million for fiscal year
2005 through the Environmental Protection Agency. The consortium will
be responsible for at least a 50 percent match of Federal
appropriations with private sector and State support over any 5-year
period. The Consortium will be subject to annual review to ensure the
effective production of data, regulatory assessments, and technology
development meeting the stated goals of the Consortium.
Thank you for your continued support.
______
Prepared Statement of the California Government and Private Sector
Coalition for Operation Clean Air
Mr. Chairman and members of the subcommittee, on behalf of the
California Government and Private Sector Coalition for Operation Clean
Air's (OCA) Sustainable Incentive Program, we are pleased to submit
this statement for the record in support of our fiscal year 2005
funding request of $1,000,000 for OCA as part of a Federal match for
the $180 million already contributed by California State and local
agencies and the private sector for incentive programs. This request
consists of $500,000 from the Environmental Protection Agency (EPA) for
a public education program related to the Clean Air Act and $500,000
from the Department of Housing and Urban Development related to
reduction of emissions from individual residential activities.
California's great San Joaquin Valley is in crisis. Home to over
3.3 million people, its 25,000 square miles now has the unhealthiest
air in the country. Even Los Angeles, long known as the smog capital of
the Nation, can boast better air quality by certain standards. While
peak concentrations of air pollutants are still greater in Los Angeles,
for the past 4 years, the San Joaquin Valley has exceeded Los Angeles
in violations of the ozone 8-hour Federal health standard.
A combination of geography, topography, meteorology, tremendous
population growth, urban sprawl and a NAFTA corridor of two major
highways with over 5 million diesel truck miles per day, have collided
to produce an air basin in which over 300,000 people, nearly 10 percent
of the population, suffer from chronic breathing disorders. In Fresno
County, at the heart of the San Joaquin Valley, more than 16 percent of
all children suffer from asthma, a rate substantially higher than any
other place in California. The extreme summertime heat creates smog
even though smog-forming gases are less than half the amount in the Los
Angeles basin. There is no prevailing wind to flush the natural
geologic bathtub and, as a result, pollutants and particulates
stagnate, accumulate, and create unhealthy air.
Degradation of human health is not the only consequence of poor
quality air. In December 2003, the San Joaquin Valley Air Pollution
Control District Board decided to become the first Air District in the
Nation to voluntarily declare itself an ``extreme'' non-attainment
area. This designation, if approved by USEPA, will defer until 2010 the
date for attainment of Federal standards of air quality, but comes at a
cost of imposing permitting on thousands of more businesses and even
further discouraging business expansion or relocation. More Valley's
businesses will be required to obtain permits and comply with
increasingly burdensome regulations imposed by Federal and State law
and the Air Pollution Control District, resulting in added cost in
compliance, reporting and record keeping. At the same time, the area is
burdened by chronic unemployment rates of nearly 20 percent.
Encouraging business expansion in or relocation to the San Joaquin
Valley to combat unemployment will be extremely difficult in the face
of such regulatory burdens.
The San Joaquin Valley is home to the most productive agricultural
land in the world. Over 350 crops are produced commercially on 28,000
farms encompassing more than 5 million irrigated acres. While the
agricultural industry has made great strides at considerable expense to
replace old diesel engines and manage fugitive dust and other
emissions, farming does contribute to the problem. However, it is a $14
billion industry that forms the backbone of the Valley's economy, and
its vitality is crucial.
Industry alone is not the source of the Valley's poor air quality.
Population growth rates exceeding those in the rest of the State and
most of the Nation, in an area without effective mass transit, where
cheap land has led to a landscape of suburbia and sprawl, results in
excessive over-reliance on the automobile. Trucking has increased
dramatically with the increase in population, and Federal free trade
policies. Other factors such as fireplace burning in the winter, open
field agricultural burning because of lack of sufficient alternatives,
and wild fires resulting from lack of controlled burning in the nearby
foothills and mountains all contribute to the problem.
Despite the challenges listed above, much progress has been made.
The State has spent nearly $80 million on improvement and compliance
programs. Local government and private industry have spent over $100
million on technology and compliance. As specific examples, over one
half of the diesel operated irrigation pumps used by agriculture have
been replaced with cleaner engines. The City of Tulare has converted
its entire fleet of vehicles to natural gas as have several other
private fleet operators. A $45 million federally financed comprehensive
study of ozone and particulate matter is nearing completion. As a
result, the number of 1-hour EPA health standard exceedences has been
reduced by 40 percent since 1989.
But much more needs to be done. The District estimates that daily
emissions must be reduced by 300 tons to achieve attainment. There is
no single or short-term quick fix. The entire Valley (an area the size
of the State of Connecticut) is part of the problem and the entire
Valley will need to be part of the solution.
Operation Clean Air is a coalition of business, government, health
care, and environmental groups throughout the eight county San Joaquin
Valley Air Pollution Control District. Its goal is to clean the
Valley's air and increase its economic prosperity. The coalition seeks
to catalogue efforts that have produced positive effects and identify
those strategies that could produce even greater effects if supported
by sufficient resources. At the heart of its efforts will be an array
of sustainable, voluntary practices and activities that can and will be
undertaken by all of the residents of the San Joaquin Valley, both
public and private, to improve air quality.
This unique public-private partnership has invested considerable
resources in this project to date, and will continue to do so, but
Federal funding is both imperative and justified to help address what
is essentially an unfounded Federal mandate.
For fiscal year 2004, our Coalition is seeking funding of $500,000
from the Environmental Protection Agency (EPA) related to public
education regarding the Clean Air Act and $500,000 from the Department
of Housing and Urban Development for the implementation of individual
residential emission reduction programs.
First from EPA, the coalition is seeking $500,000 for a public
education and awareness campaign. The purposes of the campaign are to
provide information to the public regarding the impact of air quality
on health and engage the public in voluntary air quality improvement
efforts. The health-care sector, comprised of many medical
professionals committed to Operation Clean Air is uniquely positioned
to both educate the public about the impact of air quality on health
and collect data on the health effects of air pollution on the
population.
The public education and awareness campaign will include a valley-
wide media campaign to raise awareness of the health effects of poor
air quality including television, radio, print, Internet, brochures,
flyers, posters and billboards in English, Spanish and Hmong; school-
based curriculum including materials to reach new teen drivers with
information on vehicle maintenance and cost-effective driving habits.
Fact sheets and videos will be developed on steps that individuals and
institutions can take to reduce their individual contribution of air
pollutants. A special effort will be made to collaborate with county
public health officers to make sure that they have adequate information
for their education programs.
From HUD, the coalition is seeking $500,000 to reduce the emissions
from individual residential activities including heating with non-EPA
certified wood heaters, use of gasoline lawn and gardening equipment,
and low efficiency lighting. The co-funding will be made available to
low-income residents to fund the removal and replacement of non-EPA
certified wood heaters with new EPA certified unit, and for repair or
upgrade of sub-standard heating systems to reduce the reliance on wood
for heat. Co-funding will also be used for programs providing
incentives to residents and hospitals for battery operated leaf
blowers, electric lawn mowers, and other replacement equipment to
displace gasoline or diesel operated landscaping equipment throughout
the valley. During the winter months 15 percent of the particulate
matter pollution in the San Joaquin Valley is attributable to
residential wood smoke. By providing grant funds to low-income
residents that currently rely on wood for heat we will be able to
provide them with a more efficient heating source and reduce
disproportionate impact of wood smoke in low-income neighborhoods.
Thank you very much your consideration of our requests.
______
Prepared Statement of the California Industry and Government Central
California Ozone Study (CCOS) Coalition
Mr. Chairman and members of the subcommittee, on behalf of the
California Industry and Government Central California Ozone Study
(CCOS) Coalition, we are pleased to submit this statement for the
record in support of our fiscal year 2005 funding request of $1.0
million from the Environmental Protection Agency (EPA) for CCOS as part
of a Federal match for the $9.4 million already contributed by
California State and local agencies and the private sector. We greatly
appreciate your past support for this study ($1,000,000 in fiscal year
2002, $900,000 in fiscal year 2003, and $500,000 in fiscal year 2004)
as it is necessary in order for the State of California to address the
very significant challenges it faces to comply with the air pollution
requirements of the Federal Clean Air Act.
Most of central California does not attain Federal health-based
standards for ozone and particulate matter. The San Joaquin Valley has
recently requested redesignation to extreme and is committed to
updating their 1-hour ozone State Implementation Plan (SIP) in 2004,
based on new technical data. In addition, the San Joaquin Valley,
Sacramento Valley, and San Francisco Bay Area exceed the new Federal 8-
hour ozone standard. SIPs for the 8-hour standard will be due in the
2007 timeframe--and must include an evaluation of the impact of
transported air pollution on downwind areas such as the Mountain
Counties. Photochemical air quality modeling will be necessary to
prepare SIPs that are approvable by the U.S. Environmental Protection
Agency.
The Central California Ozone Study (CCOS) is designed to enable
central California to meet Clean Air Act requirements for ozone SIPs as
well as advance fundamental science for use Nation-wide. The CCOS field
measurement program was conducted during the summer of 2000 in
conjunction with the California Regional PM10/
PM2.5 Air Quality Study (CRPAQS), a major study of the
origin, nature, and extent of excessive levels of fine particles in
central California. This enabled leveraging of the efforts of the
particulate matter study in that some equipment and personnel served
dual functions to reduce the net cost. From a technical standpoint,
carrying out both studies concurrently was a unique opportunity to
address the integration of particulate matter and ozone control
efforts. CCOS was also cost-effective since it builds on other
successful efforts including the 1990 San Joaquin Valley Ozone Study.
CCOS includes an ozone field study, data analysis, modeling
performance evaluations, and a retrospective look at previous SIP
modeling. The CCOS study area extends over central and most of northern
California. The goal of the CCOS is to better understand the nature of
the ozone problem across the region, providing a strong scientific
foundation for preparing the next round of State and Federal attainment
plans. The study includes five main components:
--Designing the field study;
--Conducting an intensive field monitoring study from June 1 to
September 30, 2000;
--Developing an emission inventory to support modeling;
--Developing and evaluating a photochemical model for the region; and
--Evaluating emission control strategies for upcoming ozone
attainment plans.
The CCOS is directed by Policy and Technical Committees consisting
of representatives from Federal, State, and local governments, as well
as private industry. These committees, which managed the San Joaquin
Valley Ozone Study and are currently managing the California Regional
PM10/PM2.5 Air Quality Study, are landmark
examples of collaborative environmental management. The proven methods
and established teamwork provide a solid foundation for CCOS. The
sponsors of CCOS, representing State, local government, and industry,
have contributed approximately $9.4 million for the field study. The
Federal Government has contributed $4,874,000 to support some data
analysis and modeling. In addition, CCOS sponsors are providing $2
million of in-kind support. The Policy Committee is seeking Federal co-
funding of an additional $2.5 million to complete the remaining data
analysis and modeling. California is an ideal natural laboratory for
studies that address these issues, given the scale and diversity of the
various ground surfaces in the region (crops, woodlands, forests, urban
and suburban areas).
There is a national need to address national data gaps and
California should not bear the entire cost of addressing these gaps.
National data gaps include issues relating to the integration of
particulate matter and ozone control strategies as well as the need to
address air quality modeling of long-term, multi-pollutant scenarios.
Current air quality modeling practice is to represent an entire ozone
season by one episode, or in rare cases, a few episodes, which has been
a limitation of modeling used for the 1-hour ozone standard. However,
to ensure that air pollution control decisions are based on sound and
thorough assessments of the available data, improvement in the
scientific methods that would be used for 8-hour ozone,
PM2.5, and regional haze standards is imperative. It is
particularly important that there is an expansion of the number of
episodes evaluated. The duration, quality, and completeness of the
combined database of CCOS and CRPAQS offers a unique opportunity to
assess and improve air quality models and the ability to perform long-
term air quality simulations that address both ozone and particulate
matter. This is necessary to comprehensively assess emission control
strategies for both pollutants and regional haze.
For fiscal year 2005, our Coalition is seeking funding of $1.0
million from the Environmental Protection Agency (EPA). The CCOS would
use the $1.0 million requested for fiscal year 2005, in conjunction
with other funding, to help address modeling needs for the 8-hour ozone
and PM2.5 standards. It is particularly important that there
is an expansion of the number of episodes evaluated. The requested
funding will allow for significant improvements in computer programming
and computer processing, both of which are necessary to handle the vast
amount of data required to be analyzed for evaluating multiple
episodes. The requested funding will also allow for air quality model
validation assessments. These assessments are necessary to ensure that
models are representing the results for the right reasons. The U.S. EPA
has a direct stake in, and will benefit from, the CCOS program. This
program will further the fundamental science of air quality modeling
and advance the use of models for future SIPs Nation-wide.
Thank you very much for your consideration of our request.
Current CCOS Study Sponsors
Private Sector
Western States Petroleum Association; Pacific Gas and Electric
Company; Electric Power Research Institute; Nisei Farmers League and
Agriculture; Independent Oil Producers' Agency; California Cotton
Ginners and Growers Associations.
Local Government
San Joaquin Valley Unified Air Pollution Control District (on
behalf of local cities and counties); Bay Area Air Quality Management
District; Sacramento Metro Air Quality Management District; San Luis
Obispo County Air Pollution Control District; Mendocino County Air
Pollution Control District.
State Government
California Air Resources Board; California Energy Commission.
Federal Government
National Oceanic and Atmospheric Administration; Environmental
Protection Agency; Department of Agriculture; Department of
Transportation.
______
Prepared Statement of the Ecological Society of America
As the Vice President for Science for the Ecological Society of
America, I am pleased to provide written testimony for the National
Science Foundation. The Ecological Society of America has been the
Nation's premier professional society of ecological scientists for
nearly 90 years, with a current membership of 8,000 researchers,
educators, and managers. We appreciate the opportunity to offer written
testimony on behalf of the National Science Foundation.
We thank the committee for its strong commitment to the NSF over
the last several years. Investment in this agency is very much in the
public interest and your vision will pay extraordinary dividends in the
years to come. We are also grateful to the 107th Congress for passing
the NSF Authorization Act, which laid out a plan to boost the Nation's
investment in this agency.
We believe that NSF's fiscal health is critical to maintaining the
Nation's international scientific leadership. Dividends from past
investments in the NSF are manifested in the individual scientific
disciplines, as well as in the groundwork that has been laid for
interdisciplinary research needed to meet present and future scientific
challenges. Research supported through the NSF has led not only to
major advancements in all of the sciences, mathematics, and
engineering, but has repeatedly underpinned new technologies such as
the use of bar codes for inventory control and bioengineering microbes
to clean up toxic waste, as well as new techniques, for example
improving a building's resistance to damage during an earthquake.
I wish to particularly note that the NSF is responsible for the
majority of all non-medical biological research, ranging from the
molecular level to the study of entire ecosystems. Approximately 65
percent of all academic, non-medical, biological research is supported
through the National Science Foundation.
Important accomplishments have resulted through NSF-funded research
and the potential for future opportunities is immense. Biological
research will improve our ability to assess and predict the status of
ecosystems, which provide the United States with goods such as fish,
and services, such as water purification. Research efforts in the
social sciences will enhance our understanding of large-scale
transformations such as globalization and democratization, while work
in the ocean sciences holds the potential to reveal previously
unimaginable images of even the deepest oceans. Advances in NSF-
supported chemistry may lead to cleaner industrial technology and
address problems of carbon sequestration. Research in the mathematical
sciences has led to advances in cryptography and improved internet
security.
In a time where we find more and more federally funded research
directed by a particular agency mission, I want to highlight that one
of NSF's greatest strengths is its support of the best research,
regardless of its potential use. The NSF peer review system has an
excellent track record of choosing the best science and the best
investigators to perform the research, as the significant number of
Nobel Prize winners who received support from NSF demonstrates.
As a Professor of Biology and Director of Graduate Studies for Duke
University's Program in Ecology I have first-hand knowledge of the
positive impact NSF has on a scientific discipline. Our own NSF-funded
research on the Central Plains has shown us that historic experience,
including the 1930's Dust Bowl, is unremarkable in light of climate
swings of the last few centuries. We've learned many species cannot
migrate fast enough to track a shifting 21st Century climate and will
be left behind, with large consequences for biodiversity. This has
significant implications for agriculture in the Great Plains region.
Continued advancement in ecological science depends upon healthy
NSF budgets. Many ecologists whose grant proposals are deemed of very
high quality are either not funded or go under-funded due to inadequate
NSF grant funds. Eventually this funding situation is likely to affect
the choices of U.S. students as to whether or not they choose to enter
the field of ecology, a science that is crucial to meeting emerging
environmental challenges ranging from the ecology of disease to the
likely consequences of human alteration of the nitrogen cycle.
Other science, mathematics, and engineering fields experience many
of the same tensions exhibited in the ecological sciences. These
disciplines share our concern that not enough U.S. students are
interested in science and engineering-related careers. Many of us in
the scientific community are worried that the United States may loose
its preeminent position in science. All science, math, and engineering
disciplines depend upon a strong National Science Foundation.
As the only Federal agency to support science and education across
all disciplines, and as the principal supporter of environmental
biology, NSF's contributions have been extremely valuable to the U.S.
research enterprise. We hope that the committee will do its best to
ensure that the agency continues on this path. Thank you for
consideration of our testimony and for your concern for the National
Science Foundation.
______
Prepared Statement of the Association of American Universities
I appreciate the opportunity to submit testimony on behalf of the
Association of American Universities (AAU). The AAU is an organization
of 62 leading public and private research universities in the United
States and Canada.
I would first like to thank the subcommittee for its strong support
of the National Science Foundation (NSF) and the National Aeronautics
and Space Administration (NASA). Universities play a substantial role
in the research activities of these two agencies, and your efforts to
increase funding for them is very much appreciated.
For the National Science Foundation, AAU supports an fiscal year
2005 budget of $6.415 billion, an $837 million increase over the fiscal
year 2004 enacted level of $5.578 billion. This would represent a 15
percent increase over the level appropriated for NSF in fiscal year
2004, the same growth rate authorized by Congress and the President in
the NSF Authorization Act of 2002 (Public Law 107-368). AAU realizes,
however, that such growth in the current fiscal environment would be
extremely difficult. We hope that the subcommittee will provide as
large an increase as possible in recognition that the investment is
both needed and of critical importance to the Nation. The President has
requested $5.745 billion for NSF in fiscal year 2005, an increase of 3
percent, an increase which for reasons discussed below we view as being
somewhat spurious.
For NASA's Exploration, Science, and Aeronautics (ESA) account, AAU
supports $8.0 billion, $240 million above the fiscal year 2004 level.
AAU supports the space exploration vision announced by President Bush
on January 14, 2004, but feels strongly that NASA's science offices can
and must play a central role in both the early and long-term stages of
the initiative. Developed over a relatively short period of time with
limited input from the community, the space exploration initiative
substantially delayed a number of opportunities on which the science
community and NASA had agreed. While NASA has the authority to reset
priorities, the cuts were made with no review or consultation with the
community most affected. We urge that the subcommittee encourage NASA
to engage with the National Academy of Sciences both to set the science
goals of the exploration initiative and to examine the impact of
deferred programs and to recommend ways by which the scientific returns
from the new institutive can be maximized.
NATIONAL SCIENCE FOUNDATION
NSF is the heart of the Federal investment in basic scientific
research. Since its founding in 1950, NSF has had an extraordinary
impact on American scientific discovery and technological innovation.
Despite its size, it is the only Federal agency with responsibility for
research and education in all major scientific and engineering fields.
Approximately 95 percent of the agency's total budget directly supports
the actual conduct of research and education, while less than 5 percent
is spent on administration and management.
I cannot overstate the importance to our Nation's future prosperity
of investment in basic scientific research and in the people who
conduct this research. From pioneering medical tools to robotics, from
the invention of the Internet to fiber optics, from discovering how
children learn to expanding our computing capacity, NSF has had an
extraordinary impact on scientific discovery that has driven the
Nation's economy and improved the quality of life.
AAU recognizes that the VA-HUD and Independent Agencies
Subcommittees on both the House and Senate side have been
extraordinarily supportive of the NSF. In fiscal year 2001, with the
subcommittee's help, Congress provided the single largest funding
increase, in both percentage and dollar terms, in the history of the
NSF. Substantial increases were also provided in fiscal year 2002,
fiscal year 2003 and fiscal year 2004. We thank the subcommittee, and
in particular Chairman Bond and Ranking Member Mikulski, for their
critical role in securing these increases. The university community is
enormously grateful for this support.
AAU has real concerns about the President's proposed budget for
NSF. Of the proposed $167 million funding increase requested,
approximately $75 million is directed to the salaries and expense
account for internal operations and staffing, making the real increase
for NSF programs $92 million, an increase of only 1.6 percent. In
addition, Research and Related Activities (R&RA) would increase to $4.5
billion, a 4.7 percent increase over the fiscal year 2004 level of 4.3
billion. Eighty million dollars of this funding comes from a transfer
of funds to support previous obligations made under the Math Science
Partnerships program which was previously funded as a part of the
Education and Human Resources (EHR) account. If this transfer of MSP
funds is discounted, the RR&A funding increase is only 2.8 percent over
the fiscal year 2004 level.
Restoration of the Math Science Partnerships
AAU is deeply concerned about the administration's proposal to
transfer NSF's Math Science Partnership (MSP) program to the Department
of Education. In its current form within the Education and Human
Resources account, this program links top scientific researchers at
colleges and universities to elementary and secondary schools in an
effort to improve the quality of math-science education. As a
competitive grant program administered by the NSF, money is only
awarded to the highest quality proposals based upon technical merit and
a comprehensive peer review process.
We are concerned that transferring the MSP program entirely to the
Department of Education will fundamentally change the manner in which
funds are distributed. The MSP program at the Department of Education
is primarily a block grant program where funds are distributed to
States on a formula basis. This would be a significant disincentive for
the best researchers at our universities to continue to participate in
this important program. Moreover, as currently constructed, NSF's MSP
program focuses on the modeling, testing and identification of high-
quality math-science activities whereas the Department of Education
focuses on their dissemination.
Because the MSP program at NSF is a unique program of proven
effectiveness, we strongly encourage Congress to restore the $80
million requested for the MSP program to the Education and Human
Resources account and increase funding for the program to $140
million--an amount slightly above what Congress provided in fiscal year
2004.
Fulfilling the Intent of the NSF Reauthorization Act of 2002 (Public
Law 107-368)
In a report to Congress required by the NSF Reauthorization Act of
2002 (Public Law 107-368), the National Science Board (NSB) notes,
``There has never been a more critical or opportune time to invest in
research and education.'' AAU concurs with this statement and urges
Congress to fulfill the intent of Public Law 107-368 by increasing NSF
funding in fiscal year 2005 at the rate suggested by this important
legislation. Presently, 15 to 20 percent of highly-rated proposals to
the NSF are not funded because of inadequate resources. In some NSF
programs, this percentage is even higher.
The NSB report proposes several areas for additional investment
including: improving the productivity of researchers and expanding
opportunities for students; opening new frontiers in research and
education; building a diverse competitive and globally engaged U.S.
science and engineering workforce; increasing the number and diversity
of institutions that participate in NSF-funded activities; and
providing researchers with advanced tools, facilities, and
cyberinfrastructure. AAU supports the proportional funding that the NSB
designates for these activities and urges that NSF funding increases be
distributed accordingly.
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
NASA has a long history of productive collaboration with
universities, supporting research that has given the United States the
undisputed leadership role in the study of space and the earth's
environment. University-based research, with important technological
applications, has been supported through research grants, individual
collaborations between faculty and NASA scientists, and formal
partnerships between NASA centers and universities.
A New Vision for Solar System Exploration
A new vision for space exploration was announced by the
administration in January. AAU supports NASA's new exploration goals
and believes that the goals can and should be pursued in the context of
fulfilling NASA's vision and mission statement. In doing so, science
must play a key role and be nurtured, both in parallel to and as an
integral part of exploration. The science programs should remain robust
and exploration should be aided by the same kind of scientific guidance
and community support that has consistently served our Nation over the
years.
AAU supports a robust human exploration program, guided by science
and scientific goals. NASA has not had a mandate for its manned
programs for 30 years, even though it has needed a clear goal to define
the mission and purpose of that program. Moreover, the new vision for
exploration is consistent with a recent report by the National Academy
of Sciences that calls for a clear goal for human spaceflight, the
exploration of the Moon and Mars as possible goals for human
spaceflight, and the expectation that exploration will be a long-term
endeavor accomplished through a series of small steps.
Seek the Advice of the National Academy of Science
While the Moon-Mars initiative has many positive aspects, it will
be years before it yields any payoff in manned missions; all of the
preparation will be done robotically. Moreover, human exploration is
more than simply putting astronauts in space. These individuals become
not only the subjects of studies that advance our knowledge in human
biology, but also the operators of scientific experiments in a number
of disciplines, not the least of which are the biological and physical
sciences. Therefore, as the initiative proceeds, science must be a full
partner. Scientific milestones--not just technological ones--should
identified in the implementation plan.
In addition, the space exploration initiative will have a major
impact on many planned scientific missions that have been carefully
developed over a period of years by advisory committees at NASA and the
national academies. Relying heavily on community input and group
consensus, the committees have laid out 10-year plans for specific
scientific disciplines in decadal surveys. The prior advice includes
explicit sets of consensus priorities for meeting goals that support
the NASA mission. These efforts include hard choices on priorities and
are not simply wish lists.
Developed over a relatively short period of time with limited input
from the community, the space exploration initiative substantially
delays a number of opportunities on which the science community and
NASA have agreed. For example, in the Beyond Einstein program, LISA is
delayed to 2013, Constellation-X is delayed to 2016, and the Einstein
Probes, including the Dark Energy Probe or Joint Dark Energy Mission,
are deferred beyond the current budget 5-year horizon. The Sun-Earth-
Connections strategic plan has also been affected, particularly the
Solar-Terrestrial Probe line, the sub-orbital program, and the Guest
Investigator and Supporting Research & Technology (SR&T) programs.
Similar delays would also take place in the Earth Sciences.
Certainly the administration has the authority to redirect NASA's
priorities. However, funding reductions and delays in existing programs
have been proposed with little consultation with the communities most
affected. Therefore it is unlikely that the proposed program would
realize an optimal science strategy. NASA should engage with the
National Academy of Sciences to set the science goals of the
exploration initiative, examine the impact of deferred programs, and
recommend ways in which the scientific returns from the new initiative
can be maximized. This review should include science performed under
all three NASA science offices. The NAS already has underway a review
of the final Hubble servicing mission at the subcommittee's request,
but we suggest the National Academy be asked to review all the science
programs as they relate to the space exploration initiative.
Restore the Explorer Cut
Although many of the cuts to existing NASA programs are in the
outyears, some impacts will be felt immediately. The President proposes
a reduced budget for the Explorer program resulting in a reduced flight
rate for future Explorer missions. AAU urges that NASA proceed with the
number of missions originally planned and that future Explorer
Announcements of Opportunity (AO) not be slowed from the previously
planned pace. We ask that $240 million be added for this purpose.
The Explorer program has been extraordinarily successful, in part,
because consistent funding and regular flights have provided frequent
opportunities for scientific investigations from space. This in turn
has driven NASA technology development with great efficiency. Heavily
utilized by universities, the Explorer program is small in terms of
size and budget. Total definition, development, launch service, and
mission operations and data analysis costs may not exceed $240 million.
Since the first mission, more than 70 U.S. and cooperative
international scientific space missions have been flown on Explorer
satellites, making impressive discoveries about the solar system and
the universe beyond. Science magazine recently selected the results
from the WMAP Explorer mission as the scientific breakthrough of the
year in all areas of science.
A similar program exists in the Earth Science Enterprise. While the
Earth Pathfinders do not have as long a heritage as the Explorer
program, they too have made remarkable advances. The TRMM mission has
provided unprecedented information on rainfall over the tropics, which
is leading to significant new scientific discoveries and improvements
in weather prediction. The Explorer program and its Earth Science
counterpart show how NASA has applied the concept of ``faster-cheaper-
better'' most successfully. NASA should seek to maintain and enhance
these valuable programs.
I appreciate the opportunity to submit testimony on behalf of the
AAU, and I hope the subcommittee will continue to provide strong
funding for NSF and NASA science programs. It is in the best interest
of the Nation and its scientific and technological strength.
______
Prepared Statement of The Wildlife Society
The Wildlife Society appreciates the support that both the Congress
and the administration have demonstrated for the National Science
Foundation (NSF) through the enactment of the National Science
Foundation Authorization Act of 2002. The Act authorizes a 5-year
period of 15 percent annual budget increases and places the NSF on the
``doubling track'' in order to protect ongoing and future U.S.
scientific and technological advancements in science.
The Wildlife Society urges Congress and the administration to act
upon their commitment to the NSF by increasing the fiscal year 2005
funding level for this agency by 15 percent over the fiscal year 2004
enacted budget, for a total of $6.415 billion.
The Wildlife Society encourages you to consider our funding
recommendation for the National Science Foundation's fiscal year 2005
budget. Despite tough budget times, this kind of investment is
critical. NSF is one of the Nation's greatest tools for the promotion
and advancement of scientific research and education. Although NSF
accounts for only 4 percent of Federal Research and Development
spending, it supports nearly 50 percent of the non-medical Biological
Sciences research at our colleges and universities.
BIOLOGICAL SERVICES
Within the Research and Related Activities (R&RA) account, the
Biological Sciences Directorate is of particular interest to the
wildlife conservation and management community. The Biological Sciences
Activity (BIO) supports research, infrastructure, and education at U.S.
academic institutions.
BIO provides 65 percent of the support for basic research in non-
medical aspects of the biological sciences at academic institutions.
Because the majority of Federal support for the life sciences--over 85
percent--goes to health-related research funded by the National
Institute of Health, NSF's contribution to the broad array of the
biological sciences is highly significant and strategically focused--
particularly in such areas as environmental biology and plant sciences.
In nationally important issues related to wildlife and wildlife
habitat, BIO-supported research enhances the understanding of how
living organisms function and interact with non-living systems.
Current research includes a project funded by the Division of
Environmental Biology that is investigating the elk-wolf interactions
in Yellowstone National Park. Results of the project will enhance
fundamental knowledge of large mammalian systems and facilitate design
of sound endangered species programs. BIO-supported researchers have
modeled the population density and foraging behavior of Brazilian free-
tailed bats and determined that bats from two Texas caves provide pest
control service for crops including corn and cotton. The estimated
value of the protection afforded the cotton crop by bats from the two
caves amounts to as much as $258.0 million annually; thus conserving
bat diversity and habitat is both biologically and economically
beneficial.
The President's budget proposal restricts the BIO program to an
increase of approximately 2 percent. We recommend you provide the
Biological Sciences account with an increase equal to the overall R&RA
increase, which is 4.7 percent over the fiscal year 2004 enacted level.
This would equal an increase of $27.58 million for Biological Sciences,
for a total budget of $614.47 million in fiscal year 2005.
TOOLS
Tools, the NSF strategic goal to revitalize and upgrade aging
infrastructure, enables progress in research and education by providing
the cutting edge tools necessary for working with today's complex and
highly variable research tasks. The Wildlife Society supports the
President's requested $58.3 million increase for the Tools account,
Major Research Equipment and Construction Facilities (MREFC). Increased
funding for MREFC will support ongoing projects and provide funding
necessary to launch proposed projects.
We urge you to support the President's request of $12 million in
fiscal year 2005 for the proposed National Ecological Observatory
Network (NEON) project under the MREFC account. NEON will be a
continental-scale research instrument consisting of geographically
distributed observatories, networked via state-of-the-art
communications allowing scientists and engineers to conduct research
spanning all levels of biological organization. NEON will provide
researchers with important tools necessary to address ecological
questions regarding habitat and wildlife conservation in the U.S.
Examples of research questions that could be addressed by NEON include:
the spread of infectious agents like West Nile Hanta virus, and the
affect of western wildfires on water quality.
ABOUT THE WILDLIFE SOCIETY
The Wildlife Society is the association of nearly 9,000
professional wildlife biologists and managers dedicated to excellence
in wildlife stewardship through science and education. Our mission is
to enhance the ability of wildlife professionals to conserve diversity,
sustain productivity, and ensure responsible use of wildlife resources
for the benefit of society. The Wildlife Society supports all aspects
of Federal programs that benefit wildlife and wildlife habitat through
research and education.
Please include this testimony in the official record. Thank you for
the opportunity to share our views with the committee.
______
Prepared Statement of the Great Lakes Indian Fish and Wildlife
Commission
EPA--Environmental Programs and Management Account.--$300,000 (same
as fiscal year 2004 enacted) as a stable funding base so that GLIFWC
can: (1) Bring a tribal perspective to the mix of Great Lakes managers;
and (2) Use its scientific expertise to study issues that directly bear
upon the health of tribal members and the ecosystems that sustain
treaty harvests of fish, wildlife and wild rice. Specifically:
Lake Superior Binational Program and Lake Superior LaMP.--$80,000
for continued participation in the Binational Program, in implementing
the Lake Superior LaMP, and in IJC, SOLEC, and other Great Lakes
forums.
Habitat and Human Health Research Projects.--$220,000 for research
projects in three areas of GLIFWC's particular expertise and
experience:
--Lake Superior Habitat and Human Health Research.--$90,000 for
ongoing research projects on contaminant levels in Lake
Superior fish and on potentially contaminated whitefish and
lake trout spawning reefs in Lake Superior.
--Mercury/Heavy Metals in Biota Research.--$90,000 for a 3-year
project to assess the risks posed to fish and wild rice by
habitat disturbances within watersheds.
--Sulfide Mining Evaluation and Monitoring.--$40,000 to assess the
impacts of contaminants leaking from the closed Flambeau Mine
in Wisconsin, to develop a groundwater flow scoping model for
the proposed Yellow Dog mine in the Michigan Upper Peninsula,
and generally to continue to gather data regarding other
identified potential mining sites in northern Wisconsin and the
Upper Peninsula of Michigan.
Federal Responsibilities and Funding Authority.--Over the past 10
years, Congress and EPA have funded GLIFWC's treaty rights
environmental protection program to meet specific Federal
responsibilities including: (1) Treaty obligations under the U.S./
Chippewa treaties of 1836, 1837, 1842, and 1854; (2) Federal trust
responsibility toward Indian Tribes; (3) Court decisions affirming the
treaty rights, including a 1999 U.S. Supreme Court decision; and (4)
Federal statutes requiring integration of Tribes into Federal
environmental programs, such as the Clean Water Act (33 U.S.C. 1268)
[EPA and GLNPO to integrate tribal agencies in the development and
implementation of action plans to carry out the United States'
responsibilities under the Great Lakes Water Quality Agreement].
Ceded Territory Treaty Rights and GLIFWC's Role.--Tribal members
rely upon fish, wildlife, and plants for religious, cultural,
medicinal, subsistence, and economic purposes. Their treaty rights mean
little if contamination of these resources threatens the health,
safety, and economy of tribal members, or if the habitats supporting
these resources are degraded.
GLIFWC was established in 1984 as a ``tribal organization'' within
the meaning of the Indian Self-Determination Act (Public Law 93-638).
It exercises authority delegated by its member tribes to implement
Federal court orders and various interjurisdictional agreements related
to their treaty rights. GLIFWC assists its member tribes in:
--securing and implementing treaty guaranteed rights to hunt, fish,
and gather in Chippewa treaty ceded territories; and
--cooperatively managing and protecting ceded territory natural
resources and their habitats.
The requested EPA funds would assist GLIFWC in achieving its
broader conservation/habitat protection mission by maintaining
partnerships with other resource managers and scientific/conservation
organizations and by funding specific environmental research projects.
For nearly 20 years, Congress and administrations have funded
GLIFWC through the BIA, EPA and other agencies to meet specific Federal
obligations under: (a) a number of U.S./Chippewa treaties; (b) the
Federal trust responsibility; (c) the Indian Self-Determination Act,
the Clean Water Act, and other legislation; and (d) various court
decisions, including a 1999 U.S. Supreme Court case, affirming the
treaty rights of GLIFWC's member tribes.
GLIFWC serves as a cost efficient agency to conserve natural
resources, to effectively regulate harvests of natural resources shared
among treaty signatory tribes, to develop cooperative partnerships with
other government agencies, educational institutions, and non-
governmental organizations, and to work with its member tribes to
protect and conserve ceded territory natural resources.
As directed by its member tribes, GLIFWC operates a comprehensive
ceded territory natural resources conservation and protection program
through its staff of biologists, scientists, technicians, conservation
enforcement officers, and public information specialists.
GLIFWC's program includes: natural resource population assessments;
biological and scientific research; development of natural resource
management plans and tribal harvest regulations; invasive species
eradication and control projects; harvest monitoring and reporting;
enforcement of tribal conservation codes into tribal courts; funding
for tribal courts and tribal registration/permit stations; negotiation
and implementation of agreements with State, Federal and local
agencies; and development and dissemination of public information
materials.
GLIFWC Programs Currently Funded by EPA.--GLIFWC currently
administers EPA funding for a variety of ceded territory environmental
protection programs and studies.
--Participation in the Lake Superior Binational Program.--Since
fiscal year 1996, EPA has provided CEM funds of about $80,000
per year for a 1 FTE position to facilitate GLIFWC's
participation in the Binational Program to Restore and Protect
Lake Superior, including preparation and implementation of the
Lake Superior LaMP and participation in various International
Joint Commission (IJC) and State of the Lake Ecosystem
Conference (SOLEC) forums.
--Study of Proposed Sulfide Mining in Wisconsin.--Since fiscal year
2001, EPA funding of over $210,000 has allowed GLIFWC to
conduct a number of technical studies and assessments (such as
hydrological modeling, contaminant transport analysis, and
baseline biomonitoring studies) of a proposed mine in
Wisconsin, to participate as a ``cooperating agency'' in the
preparation of the Federal EIS, and to maintain hydrological
and contaminant transport expertise.
--Ceded Territory Fish Consumption Mercury Advisory Program.--In
fiscal year 2004, Congress appropriated $141,000 to continue
GLIFWC's long-standing program to collect and test fish for
mercury content and to communicate testing results to tribal
communities and the public through health care providers and
Geographic Information System (GIS) maps.
--Research and Special Projects.--Since fiscal year 1997, EPA has
provided a combination of CEM, GLNPO, and Environmental Justice
funds for GLIFWC to conduct scientific research, including the
testing of several Lake Superior fish species for dioxin and
persistent organic pollutants, resulting in data relevant to
the Binational Program/Lake Superior LaMP and to human health.
In fiscal year 2004, Congress appropriated about $90,000 for
GLIFWC to study the potential impacts of mine waste (stamp
sands) on a lake trout and whitefish spawning reef near
Michigan's Keweenaw Peninsula in Lake Superior.
Fiscal Year 2005 Funding Needs/Rationale.--GLIFWC would use fiscal
year 2005 funds for:
--Participation in the Lake Superior Binational Program.--$80,000 for
continued funding of GLIFWC staff (1 FTE equivalent, and
related travel and other expenses) who will participate in the
Binational Program, in the on-going implementation of the Lake
Superior LaMP, in IJC and SOLEC forums, and in the
implementation of the Great Lakes Strategy for 2002--A Plan for
the New Millennium.
Rationale.--The purpose of this funding is to help provide basic
infrastructure for tribal participation consistent with Federal
treaty obligations and the trust responsibility.
GLIFWC has been actively involved in the Binational Program since
1993. GLIFWC currently serves on the Binational Program's Task
Force and Workgroup, and on the Workgroup's chemical,
terrestrial and habitat committees. Its staff Co-Chairs the
Workgroup's habitat committee and terrestrial committee. GLIFWC
is participating in the on-going review and implementation of
the Lake Superior LaMP. It also helps to liaison with other
relevant Great Lakes institutions, such as the Great Lakes
Fishery Commission, on issues of mutual concern between
environmental and natural resource managers.
As for IJC forums, GLIFWC staff regularly attend the biennial IJC
meetings and provide periodic comments when issues arise in the
interim, such as on the matter of Great Lakes water diversions.
Within the last 3 years, GLIFWC staff: (i) addressed the 2000
plenary session at SOLEC on the topic of wild rice and
organized a breakout session on wild rice; (ii) participated in
SOLEC sessions on human health issues related to environmental
contaminants, Great Lakes bio-monitoring indexes, and
Traditional Ecological Knowledge (TEK) techniques; (iii)
participated in the U.S. EPA/American Fisheries Society Fish
Contaminant Forum; (iv) presented a platform entitled ``PCB
Aroclors, Methylmercury and Selenium in Lake Superior Fish'' at
Midwest SETAC's 11th Annual Meeting; (v) participated in the
FDA and EPA Development of a Joint Advisory for Methylmercury-
containing Fish Consumption for Women of Childbearing Age and
Children; and (vi) participated in the Great Lakes Radio
Consortium ``Native Americans Weigh Contaminated Fish Risks''
program.
--Habitat and Human Health-Related Research/Special Projects.--
$220,000 for Lake Superior habitat and human health research
projects.
Rationale.--GLIFWC has undertaken a number of studies over the
years related to the Lake Superior ecosystem. For example, with
GLNPO and CEM funds, GLIFWC is preparing a report on the threat
of wetland and terrestrial exotic plants to Lake Superior, has
studied sturgeon in the Lake Superior basin, and has prepared
GIS maps of fish spawning and nursery locations for both native
and exotic species. In addition, as part of its ongoing natural
resource contaminant/human health research, GLIFWC used
Environmental Justice grants to update its fish consumption
advisory database and to undertake wild rice contaminant
research for heavy metals.
For fiscal year 2005, research would be in three areas:
--Lake Superior Research Projects ($90,000).--Two projects for the
upcoming year:
--Keweenaw Peninsula Mining Waste Assessment.--Assess impacts
from mining waste (stamp sands) dumped into Lake Superior
near Upper Michigan's Keweenaw Peninsula during the late
1800's, map important whitefish and lake trout spawning
reefs, and determine the distribution of stamp sands in
relation to the spawning reefs. This study specifically
addresses objectives of the Binational Program's Aquatic
Communities Committee 2004-2006 work plan to identify and
quantify critical habitat for key fish species and to
develop linkages between habitat supply and fish community
production.
--Lake Superior Herring Contaminant Assessment.--Assess mercury,
PCB and organochlorine pesticide levels in lake herring
harvested by tribes in west-central Lake Superior, and
evaluate the new data in relation to current fish
consumption advisories. The Lake Superior LaMP 2000
identifies the need to improve the effectiveness of fish
consumption advisories and to test contaminants in
commercially-sold Lake Superior fish. There is a dearth of
data on lake herring, yet it accounted for a total harvest
of almost 1.4 million pounds lakewide in 2000 and was the
second most harvested fish in the U.S. waters of Lake
Superior.
--Mercury/Heavy Metals in Biota Research ($90,000).--Assess whether
habitat disturbance within a watershed increases the risk
that contaminants pose to walleye and wild rice. Previous
GLIFWC research suggests that fluctuating water levels in
riparian wetland habitat appeared to mobilize methylmercury
in a number of FERC-regulated reservoirs in northern
Wisconsin. The fiscal year 2005 funding would allow GLIFWC
to expand upon previous studies of watershed
characteristics and heavy metals in biota. This project
would involve 2 years of baseline data collection and one
year of analysis and statistical modeling.
--Sulfide Mining Evaluation and Monitoring ($40,000).--Using the
expertise and experience it gained in assessing the
proposed Crandon Mine in northern Wisconsin, GLIFWC would:
--Flambeau Mine in Northern Wisconsin.--Assess the impact of
contaminants leaking into the adjacent Flambeau River from
the re-filled Flambeau Mine pit near Ladysmith, Wisconsin,
by testing mussels for 1 year and crayfish for 3 years in
the river above and below the location of the refilled pit.
Analysis of mussel shells and soft tissue should provide
both a measure of recent metals exposure and of metals
exposure over the life of the individuals.
--Yellow Dog Mine in the Upper Peninsula of Michigan.--Develop a
groundwater flow scoping model to assess the potential
impact of a proposed sulfide copper mine on two Lake
Superior Tributaries--the Salmon-Trout River and Yellow Dog
River. GLIFWC would explore the impacts of both open pit
and deep mining activities by identifying which feeder
streams should be monitored and the geological information
needed to refine future models to ensure protection of
aquatic habitats, including water quality and quantity.
--Sulfide Mining Evaluation and Monitoring.--Continue to gather
data regarding other identified potential mining sites in
northern Wisconsin and the Upper Peninsula of Michigan. In
1997 and 1998, GLIFWC evaluated the likelihood that sulfide
deposits located in the ceded territories would be
developed for mineral extraction. Since then, there has
been new exploration in the western Upper Peninsula of
Michigan and continued exploration in north-central
Wisconsin. GLIFWC would collect available records of
mineral leasing, as well as drilling and land purchases by
mining/exploration companies, to continue monitoring the
potential for mining in the 1842 and 1837 Ceded
Territories. With this information GLIFWC would identify
watersheds and tribal communities most likely to be
impacted by mine development.
______
Prepared Statement of the American Society for Engineering Education
On behalf of the American Society for Engineering Education
Engineering Deans Council (EDC), I would like to express appreciation
for the opportunity to present testimony for the record on fiscal year
2005 appropriations for the National Science Foundation. I request that
my testimony be made part of the record of the hearings on the fiscal
year 2005 NSF budget. I want to begin by thanking the Chairman
Christopher Bond and Ranking Minority Member Barbara Mikulski and all
the other members of this subcommittee for their strong and continuing
support for a strong budget for the National Science Foundation and for
supporting the doubling of the NSF budget over 5 years. The NSF plays a
vital role in supporting and advancing basic research in science and
engineering and in developing the human capital needed to advance
science and technology. Funding levels for the agency greatly impact
engineering educators, as well as the Nation as a whole.
The Engineering Deans Council thanks the Congress and the
administration for recognizing the importance of the National Science
Foundation by enacting the NSF Authorization Act of 2002, which
provides for doubling the budget of the National Science Foundation
over a 5-year period. This Act represents a major milestone for the NSF
and for the scientific community, because it authorizes raising the
budget of the NSF from its fiscal year 2002 level of approximately $4.8
billion to the level of $9.8 billion in fiscal year 2007.
For fiscal year 2005 the EDC advocates raising the NSF budget by 15
percent above the fiscal year 2004 enacted level of $5.6 billion, to
$6.1 billion. Even in tough budget years, this kind of investment is
critical to developing the human and technical infrastructure that will
continue to be the basis of economic growth and security for the
country.
The EDC strongly opposes the administration's proposal to phase out
the NSF Math and Science Partnership (MSP) Program in favor of a
similar program in the Department of Education, and instead urges
Congress to fully fund the NSF MSP. The Engineering Deans Council also
strongly supports the 5-year Workforce for the 21st Century Initiative
under which all the NSF directorates will be partnering in an
integrated research and education effort to address science and
engineering workforce needs. The EDC supports the $20 million requested
by the administration for this program.
The NSF occupies a unique position, with the ability to influence
the economic strength of the Nation through research and innovation.
Basic research funded through the NSF opens the doors for further
discoveries that can advance medical care, improve communication
equipment, and contribute to creating better civilian and military
security systems. In the current climate of global economic competition
and a heightened need to protect our citizens and infrastructure,
strong support of the NSF serves a vital national interest.
Science and technology have become a core component of economic
strength and competitiveness. The NSF brings special expertise to the
task of identifying and promoting the basic science and engineering
research that underlies the United States' world economic leadership.
Research sponsored by the NSF is vital to the Nation's investment
across the scientific disciplines, and yields short term benefits and
future advances for our national and homeland security, economic
prosperity, quality of life, and educational growth. A growing chorus
touts the importance of this kind of Federal engagement with science
and technology, including Federal Reserve Chairman Alan Greenspan, the
Council on Competitiveness, and Business Week, among many others. As
Chairman Greenspan said before the House Education Committee in March
2004, ``Technological advance is continually altering the shape,
nature, and complexity of our economic processes. To effectively manage
this ever-increasing complexity, our labor force has had to become more
and more technically oriented.'' To become more technically oriented as
a society, research is crucial.
NSF is the sole Federal agency charged with the important task of
funding a broad range of research, spanning a wide variety of
disciplines including basic science, engineering, mathematics, and
computing. It provides necessary financial and intellectual support for
scientists working on groundbreaking research, much of which will lead
to innovations that could impact any number of emerging technologies.
While NSF accounts for less than 4 percent of total Federal research
and development spending, the agency supports almost half of the non-
medical basic research at American colleges and universities. In the
field of engineering, NSF provides nearly one-third of all Federal
support for basic research and has contributed to important
developments such as computer-aided design, fiber optics,
biotechnology, advanced composite materials, and magnetic resonance
imaging (MRI). Renewing support for research and equipment will allow
the Nation to take advantage of the opportunities presented by these
new technologies, creating further economic opportunities and improving
overall quality of life.
NSF-sponsored research has led to many of the current developments
in the area of homeland security. Recent NSF projects ranging from
improving bomb detection to preventing an attack on our water supply
help bolster our Nation's ability to prevent and respond to terrorist
attacks. ``The scientific and engineering community is aware that it
can make a critical contribution to protecting the nation from
catastrophic terrorism,'' Lewis M. Branscomb, emeritus professor, John
F. Kennedy School of Government, said in a 2002 National Academies of
Science report.
The benefits of a strong science investment are evident as the men
and women of our armed forces respond to unprecedented threats to U.S.
national security. Because of its superiority, much of it brought about
by investments in S&T, this Nation's military is successfully waging
war against terrorism. In this new environment, characterized by
unforeseen and unpredictable threats, maintaining and enhancing
technological superiority will become even more imperative.
Across all fields, NSF support for research produces first-rate
results on modest levels of investment. NSF-supported work is
exceptionally well managed, and regularly attracts additional funding
from outside sources. The agency has a diverse, responsive, results-
oriented staff, efficient business processes that take advantage of
staff knowledge and technology resources, and state-of-the-art business
tools and technology. NSF has exceptional business practices, as seen
by winning two ``greens'' on the President's Management Agenda
scorecard and receiving the President's 2003 Award for Management
Excellence. Former OMB Director Mitchell Daniels said that the NSF
deserves to be strengthened, noting, ``NSF is one of the true centers
of excellence in the government where 95 percent of the funds that
taxpayers provide goes out on a competitive basis directly to
researchers pursuing the frontiers of science at a very low overhead
cost.'' NSF's management successes include doubling its budget between
1990 and 2000 while simultaneously decreasing the number of employees
at the agency.
Much of NSF's work looks beyond technological innovation by
engaging new generations of students to aid in discoveries while
gaining valuable skills that help prepare them for the cutting-edge
research of the future. Many NSF grants require undergraduate students
to be involved in performing federally funded research. K-12 teachers
are invited to join in summer research programs at MIT's Radio Haystack
Observatory, and then are able to develop lesson plans that integrate
modern scientific concepts and real life research processes. The NSF's
Math and Science Partnership Program extends improved science education
into classrooms by uniting local school districts with the faculties of
nearby colleges and universities. NSF also helped to sponsor ``Deans
Summit II: Fostering Campus Collaborations,'' last year. The meeting
catalyzed the formation of many partnerships between engineering and
education deans to improve K-12 science and mathematics education. Top
science teachers, such as those who have won Presidential Awards, have
singled out the NSF's Math and Science Partnership Program for their
success. ``I am not an extraordinary teacher, but I have been given
extraordinary focus and opportunities by NSF,'' said 2003 Presidential
Awardee Jonathan Roland, a physics teacher at Perry Hall High School in
Baltimore, Maryland, at a recent House Science Committee hearing.
Engaging students in science from their pre-kindergarten education
through college will help endow growing generations of Americans with
the skills and interests necessary both to maintain U.S. leadership in
economic, health, and military fields, as well as to function as
citizens in an increasingly technology-driven society. A vibrant
engineering education enterprise benefits civic, economic, and
intellectual activity in the country. Engineering graduates learn to
integrate scientific and engineering principles to develop products and
processes that contribute to economic growth, advances in medical care,
enhanced national security systems, ecologically sound resource
management, and many other beneficial areas. As a result, students who
graduate with engineering degrees bring highly prized skills into a
wide spectrum of sectors in the American workforce. Some conduct
research that results in socially or economically valuable
technological applications. Others produce and manage the technological
innovations said to account for one-third to one-half of growth in the
American economy. Still more bring advanced analytical abilities and
knowledge of high technology to fields as diverse as health care,
financial services, law, and government. Within all of these groups,
the diversity of engineering graduates' backgrounds and viewpoints
contributes to their ability to achieve the advances in innovation,
productivity, and effectiveness that make them valuable contributors to
the American workplace.
Engineering graduates in particular bring highly prized skills into
all sectors of the American workforce. The most advanced carry on the
research that pays off in many surprising ways. Other engineering
graduates produce and manage many of the technological innovations said
to account for one-third to one-half of the recent growth in the
American economy. Still others bring advanced analytical abilities and
knowledge of high technology to fields as diverse as health care,
financial services, law, and government. In the Addendum immediately
following my testimony, I have attached additional documentation of the
many ways NSF support is promoting engineering education and research
at U.S. colleges and universities. This wealth of human capital owes
much of its capacity to strategic NSF support for engineering
education.
A succession of predictable, sizable increases to the NSF budget
will permit even greater development of human resources. In addition to
the Math and Science Partnership initiative, NSF programs have become
important vehicles for broadening the participation of under-
represented groups such as minorities and women in the fields of
science, math, and engineering. Through programs like the Experimental
Program to Stimulate Competitive Research (EPSCoR), NSF works to
strengthen the research and development infrastructure of many rural
and low-population States. Consistent growth in the NSF budget will
permit the allocation and coordination of the activities needed to
promote the broadest possible development of science, mathematics, and
technology skills among all Americans.
A 15 percent increase for the NSF budget will enhance the value of
the agency's other cross-cutting initiatives. New funding for
multidisciplinary mathematics research will enhance the transfer of
results and applications from mathematics and statistics research to
science and engineering disciplines, expanding the cadre of researchers
trained in both mathematics and science. Dynamic interdisciplinary work
across engineering and science disciplines promises startling advances
in, for example, medicine, manufacturing, and communications. The
assurance of steady resources over extended periods of time for high-
risk, high-reward endeavors--such as research in nanotechnology,
biocomplexity, and high-speed computing--would greatly enhance their
prospects for success. As Harold Varmus, former Director of the
National Institutes of Health and currently President of the Memorial
Sloan-Kettering Cancer Center, has said, ``it is crucial that leaders
of science agencies be able to anticipate several years of steady
growth during periods of expansion. These agencies make multi-year
awards and are responsible for training and research infrastructure, as
well as the operational costs of doing research.'' In an increasingly
interdependent research system, the NSF is uniquely situated to
initiate and promote productive exchanges across the full range of
scientific and engineering disciplines.
Thank you for the opportunity to present this testimony to the
subcommittee. The Engineering Deans Council would be pleased to respond
to any questions from you and your staff.
The Engineering Deans Council of the American Society for
Engineering Education (ASEE) is the leadership organization of more
than 300 deans of engineering in the United States. Founded in 1893,
ASEE in a non-profit association dedicated to the improvement of
engineering and engineering technology education.
addendum.--examples of nsf-funded programs at engineering schools
Voice-Actuated Computers in Police Cars.--Electrical engineering
professors are helping to create voice-actuated computers for patrol
cars, to allow officers to quickly access computerized databases, such
as motor vehicle license records and criminal records, while freeing up
their hands. The goal of the University of New Hampshire project, which
is funded in part by the NSF and the U.S. Department of Justice, is to
improve the protection of officers and augment homeland security
efforts by allowing safer and quicker access to important security
databases.
Improved Bomb Detection.--A Pennsylvania State University
researcher, through a NSF grant, has developed a bomb detection portal
capable of ``sniffing'' the air around a person and operates much like
a conventional airport metal detector. The machine can detect trace
amounts of explosives from anyone who has handled any explosive
substance. The machine has been patented and is set to be used in
airports.
Preventing Attacks on U.S. Water Supplies.--Some parts of the
Nation's water supply infrastructure are inherently vulnerable to
terrorist attack. For example, working from the privacy of a secluded
basement, a determined terrorist could surreptitiously inject pathogens
or poisons into a municipal drinking water distribution system. To help
water utilities anticipate and control this potential threat,
researchers in Civil and Environmental Engineering at the University of
Cincinnati are developing a new computer model to simulate contaminant
movement through a water distribution system. The research, funded in
part by the NSF, will help both large and small utilities across the
Nation recognize and minimize the vulnerability of drinking water
distribution systems to surreptitious terrorist attacks.
Quickly Identifying Deadly Viruses.--A portable pathogen detector
is currently being developed by scientists at the Center for
Biophotonics at the University of California-Davis, through an NSF
grant, to identify potentially deadly viruses and other biological
agents in an unknown sample within 15 minutes. Originally developed at
Lawrence Livermore National Laboratory with industry partners, the unit
aims to help paramedics, emergency room specialists, police, and other
first-responders who may unknowingly be exposed to bioterrorism or
other infectious agents.
Underwater Monitoring.--A professor of electrical engineering and
materials science and engineering at Pennsylvania State University has
developed a network sensor technology that can operate in liquid,
thanks to a grant from the NSF. The new system allows for underwater
monitoring that could prove useful for environmentalists,
manufacturers, and homeland security personnel. Using a node-to-node
multi-hop information transfer system, the research team was able to
overcome the problem of water's interference with the radio transfer of
information.
Creating Artificial Vision.--A researcher at the University at
Buffalo has created a silicon chip that mimics the structure and
functionality of an octopus retina. The ``o-retina'' chip can process
images just like an octopus eye does, allowing rescue or research
robots to see more clearly than human eyes can in dark or murky
conditions. The research, funded in part by the NSF, will help
researchers build a complete artificial system, including a brain that
mimics the visual systems of various animals, allowing humans to look
at the world from different perspectives.
Increasing Electrical Efficiencies.--In contrast to a large central
generator that can supply a small city, researchers in Carnegie Mellon
University's Electricity Industry Center have shown that there are many
advantages to small generators to supply a neighborhood or even a large
building. This distributed generation offers greater efficiency since
it uses the ``waste heat'' from generation to heat water, buildings,
and even cool buildings. Perhaps of greater importance, it offers lower
electricity costs and greater reliability in the face of natural
hazards and terror attacks. The work is funded in part by the NSF and
the U.S. Office of Naval Research.
Finding the Shortest Route Among a Set of Points.--The Traveling
Salesman Problem, finding the shortest route among a set of points, is
among the most studied in Computer Science. It is of high computational
complexity, and has applications in logistics, manufacturing,
transportation, and telecommunications, including airline routing,
circuit board layout, and job shop scheduling. The Applied
Computational Intelligence Lab at the University of Missouri-Rolla has
developed an approximate solution algorithm that solves large instances
much faster than competing approaches. It uses neural networks to
divide the problem into subproblems that can then be solved and
rejoined by more conventional algorithms. For the 10 million city case,
the algorithm is four times faster than the nearest other known
approach on a fast personal computer. The advantage rapidly grows even
more significant with problem size. This work was funded by the
National Science Foundation and Sandia National Laboratories.
Improving One's Memory.--The Nation, and indeed, the world are
undergoing an unprecedented shift in demographics, with the proportion
of older adults increasing dramatically. To help meet the needs of this
aging population, researchers from the University of Michigan, through
an NSF grant, have developed intelligent computer-based technology that
can assist people with memory impairment, by monitoring their
performance of daily activities and providing them with flexible,
adaptive reminders when needed. This technology will enable people to
maintain their autonomy and remain in their homes longer, thus
simultaneously increasing quality-of-life and decreasing the costs
associated with institutionalization.
Improving Technological Literacy.--As technology becomes integral
to all aspects of society, the need for a technologically literate
population becomes apparent. The Tufts (University) Engineering the
Next Steps (TENS) GK-12 program, funded by the National Science
Foundation, works from the Center for Engineering Educational Outreach
to do just that. By pairing graduate and undergraduate Fellows from
Tufts University's School of Engineering with teachers in K-12
classrooms, content knowledge and methodologies of engineering and
computer science are integrated into existing science and mathematics
curricula. TENS works to increase teachers' knowledge of, comfort with,
and ability to teach engineering and algorithm design to ultimately
increase students' engineering knowledge and skills.
Creating the World's Smallest Engine.--A group of Washington State
University researchers has developed the world's smallest engine.
Thinner than a piece of paper and fitting inside the hole of a
Lifesaver, the engine is radically different in design, fabrication,
and operation from any existing engine. The researchers hope to use
their micro-engine as a viable power source for commonly used military
devices, such as miniaturized radar or mobile robotic sensors, and to
eliminate the need for problematic batteries, which weigh a lot for the
power they produce and are difficult to recharge in the field. The work
was funded in part by the NSF and the DOD.
Devices for People with Disabilities.--What do a shoulder-steered
tricycle for a boy born without arms, a foot-operated guitar strummer
for a boy paralyzed on his right side, and an automatic swing for a
girl with cerebral palsy have in common? All were built by Duke
University students, as part of the Biomedical Engineering class
``Devices for People with Disabilities,'' funded in part by a grant
from the NSF. In the past 7 years, small teams of students have
designed, constructed, and delivered over 40 projects such as these to
adults and children in the community. Students gain real-world
engineering experience, and clients benefit by receiving devices that
meet their needs free of charge.
Environmental Cleanup of Mines.--Highly acidic drainage from an
abandoned sulfide mine in Rowe, Massachusetts, is slowly cleaning
itself over time, and an interdisciplinary research team from the
University of Massachusetts at Amherst is studying why. The group
brings together experts from the fields of microbiology, geology,
engineering, and science education, to determine the extent and rate of
bioremediation. Researchers say their findings may enable quicker
natural cleanups not just at this mine, but at others throughout the
country and the world. The interdisciplinary project is funded by the
``Biocomplexity in the Environment'' program of the National Science
Foundation.
______
Prepared Statement of the American Museum of Natural History
ABOUT THE AMERICAN MUSEUM OF NATURAL HISTORY
The American Museum of Natural History (AMNH) is one of the
Nation's preeminent institutions for scientific research and public
education. Since its founding in 1869, the Museum has pursued its
mission to ``discover, interpret, and disseminate--through scientific
research and education--knowledge about human cultures, the natural
world, and the universe.'' It is renowned for its exhibitions and
collections of more than 32 million natural specimens and cultural
artifacts. With nearly 4 million annual visitors--approximately half of
them children--its audience is one of the largest, fastest growing, and
most diverse of any museum in the country. Museum scientists conduct
groundbreaking research in fields ranging from all branches of zoology,
comparative genomics, and informatics to earth, space, and
environmental sciences and biodiversity conservation. Their work forms
the basis for all the Museum's activities that seek to explain complex
issues and help people to understand the events and processes that
created and continue to shape the Earth, life and civilization on this
planet, and the universe beyond.
Today more than 200 Museum scientists, in five science divisions
(Anthropology; Earth, Planetary, and Space Sciences; Invertebrate
Zoology; Paleontology; and Vertebrate Zoology) as well as the Center
for Biodiversity and Conservation conduct groundbreaking lab and field
research. This research includes 100 expeditions each year and field
station investigations at the Museum's Southwestern Research Station in
Arizona. The Museum also conducts graduate training programs in
conjunction with a host of distinguished universities, supports
doctoral and postdoctoral scientists with highly competitive research
fellowships, and offers talented undergraduates an opportunity to work
with Museum scientists.
The Museum's Center for Biodiversity and Conservation, founded in
1993, is dedicated to enhancing the use of rigorous scientific data to
mitigate critical threats to global biodiversity. The CBC draws on the
strengths of the Museum's scientific, education, and exhibition
departments to integrate this information into the conservation process
and to disseminate it widely. It forges key partnerships to conduct
conservation-related field projects around the world, train scientists,
organize scientific symposia, present public programs, and produce
publications geared toward scientists, policy makers, and the lay
public. Each spring, the CBC hosts a symposium that focuses on
conservation issues. In 2002, the symposium, ``Sustaining Seascapes:
the Science and Policy of Marine Resource Management,'' examined the
large-scale conservation of marine and coastal ecosystems, giving
special consideration to novel approaches to the sustainable management
of biodiversity and fisheries. The focus of 2003's symposium was on
conservation issues related to increased ecotourism in Southeast Asia,
and 2004's symposium examines the role of invertebrates in
environmental systems.
The Museum's vast collections are a major scientific resource,
providing the foundation for the Museum's interrelated research,
education, and exhibition missions. They often include endangered and
extinct species as well as many of the only known ``type specimens''--
examples of species by which all other finds are compared. Collections
such as these are historical libraries of expertly identified and
documented examples of species and artifacts, providing an
irreplaceable record of life on earth. They provide vital data for
Museum scientists as well for more than 250 national and international
visiting scientists each year.
The Museum interprets the work of its scientists, highlights its
collections, addresses current scientific and cultural issues, and
promotes public understanding of science through its renowned permanent
and temporary exhibits as well as its comprehensive education programs.
These programs attract more than 400,000 students and teachers and more
than 5,000 teachers for professional development opportunities. The
Museum also takes its resources beyond its walls through the National
Center for Science Literacy, Education, and Technology, launched in
1997 in partnership with NASA.
An exciting chapter in the Museum's history occurred last spring
when one of the flagship and most popular halls--the Hall of Ocean
Life--reopened after an extensive renovation. Drawing on the Museum's
world-renowned expertise in Ichthyology as well as other areas of
vertebrate and invertebrate zoology, the Hall is pivotal in educating
visitors about the oceans' key role in sustaining life on our planet.
The renovated Hall of Ocean Life, together with the new Halls of
Biodiversity, Planet Earth, and the Universe and the rebuilt Hayden
Planetarium (part of the new Rose Center for Earth and Space), provides
visitors with a seamless educational journey from the universe's
beginnings, to the formation and processes of Earth, to the
extraordinary diversity of life on our planet.
COMMON GOALS OF EPA AND THE AMERICAN MUSEUM
The Environmental Protection Agency (EPA) is dedicated to
protecting and safeguarding human health and the environment. With a
focus on environmental results--making the air cleaner, water purer,
and better protecting our land through the application of sound science
and the conduct of leading-edge research--the Agency seeks to ensure
that environmental protection contributes to making our communities and
ecosystems diverse, sustainable, and economically productive. Its
fundamental purposes include ensuring that all parts of society have
access to accurate information sufficient to effectively participate in
managing human health and environmental risks.
The American Museum shares EPA's commitment to these environmental
goals and to the scientific research, technologies, and public
education that underlie them. Indeed, informed environmental
stewardship and preservation of our planet's biodiversity and
resources--in aquatic, wetland, and other natural environments and
ecosystems--are integral to the Museum's most fundamental purposes.
Museum scientists conduct research worldwide on conservation biology
and habitat protection. Their investigations advance scientific
understanding and public awareness of these vital issues.
New research tools--including Geographical Information Systems
(GIS) and remote sensing, molecular technologies, new collection types,
innovations in computation--are revolutionizing the way research can be
conducted and data analyzed, as well as the way museum collections can
be used and accessed by scientists, educators, policy makers, and the
general public. The Museum has also long been at the forefront of
developing new research tools and methods, and today the CBC and the
science divisions are carrying out leading research programs using the
Museum's unmatched resources and technologies. Museum research
resources include the following:
Remote Sensing and Geographical Information Systems Technologies.--
The CBC houses a Remote Sensing/Geographical Information Systems (RS/
GIS) lab that has had noted success since it was launched in the fall
of 1998. Wise conservation policy requires effective knowledge of the
distribution of species and ecological communities at local, regional,
and global scales. Without this information, it is difficult to decide
where to allocate scarce conservation resources. Remote sensing
technologies can provide essential data on such things as land-cover
and land-use, as well as sea surface temperatures and chlorophyll
content. GIS makes it possible for scientists to compare and visualize
the relationships among satellite and legacy data, raw standardized
samples, and data obtained through ground truthing. Because it provides
the database backbone that can connect fieldwork to analysis, GIS is
becoming an indispensable component in environmental data analysis and
is thus revolutionizing work in conservation.
The CBC uses its RS/GIS technologies in biodiversity, ecosystem,
and environmental research in ways aligned with EPA goals. Its uses of
RS/GIS include identifying sites suitable for biological inventory;
providing supplementary quantitative and qualitative data in and around
study sites (e.g. extent of habitat fragmentation); and developing
persuasive visual depictions and digital presentations for reports,
publications, and conferences.
Molecular Research Program.--The Museum is also home to a
distinguished molecular systematics program that is at the leading edge
of comparative genomics and the analysis of DNA sequences for
biological research. It includes two Molecular Systematics
Laboratories, with sophisticated technologies for sequencing and
advancing genomics research. In these laboratories, more than 40
researchers in molecular systematics, conservation genetics, and
developmental biology conduct their research on a variety of study
organisms. Their work is supported by the Museum's new frozen tissue
collection of biological tissues and isolated DNA stored in a super-
cold storage facility. This collection is an invaluable resource for
research in many fields, including conservation biology, genetics, and
comparative genomics, because it preserves genetic material and gene
products from rare and endangered organisms that may become extinct
before science fully exploits their potential. These researchers also
have onsite access to a 700-processor supercomputing cluster--the
fastest parallel computing cluster in an evolutionary biology
laboratory and one of the fastest installed in a non-defense
environment.
Southwestern Research Station.--Since 1955, the Museum's
Southwestern Research Station (SWRS) has served biologists, geologists,
and anthropologists interested in studying the diverse environments and
biotas of the Chiricahua Mountains in southeastern Arizona. Today,
under the direction of the CBC, the Station welcomes scientists and
advanced students from all parts of the country and from around the
world to carry out their research projects in such varied fields as
entomology, herpetology, botany, geology, and population, behavioral,
and physiological ecology. Projects focus in particular on wetland and
stream management and on riparian ecosystems.
Building on the scientific strengths and resources outlined above,
the Museum now proposes to launch, in partnership with EPA, a multi-
faceted research, training, and education initiative focused on the
role of water in healthy communities, ecosystems, and the environment
as a whole. AMNH scientists will integrate remote sensing, GIS, and
computational tools in basic and applied research in aquatic ecosystems
and wetlands assessment, watershed restoration, and habitat loss. These
activities support EPA's efforts to further strengthen the role of
science in decision-making by using sound scientific information and
analysis to help direct policy and establish priorities.
The proposed initiative involves a variety of projects closely
aligned with EPA's fundamental goals and whose results will be
presented to stakeholders as well as the public through conferences,
through development of technical guidance and information tools to
support decision-making, and through education and outreach programs.
Potential projects include:
--Riparian Ecosystems Research.--Riparian ecosystems research will
focus on questions of restoration, management, and monitoring,
drawing on resources of the Museum and facilities of the
Southwestern Research Station, including work on ephemeral and
permanent ponds and streams. The research station offers unique
advantages: Located in an area of high biodiversity, ecosystems
range from desert to high elevation montane forests and
riparian habitats that cross five life zone boundaries.
--Research and Education on Biodiversity in Urbanizing Landscapes.--
Research will target indicator taxa for particular projects,
advancing knowledge of development's effects on biodiversity in
sprawling environments. This is critical to EPA's ongoing work
on smart growth, anti-sprawl initiatives, development of
sustainable urban environments, and concern over the loss and
destruction of habitat due to sprawl and exploitation of
natural resources, invasive species, and non-point source
pollution. Expansion of this project to make it applicable to a
wider constituency would also match directly with EPA's smart
growth educational offerings.
--Regional Invertebrate Information Clearinghouse.--With links to
resources, references, and ongoing research about invertebrates
in the New York metropolitan region, a Clearinghouse would
serve as an important source of information for those
developing projects related to EPA priority research areas such
as: effects of climate change; restoration monitoring protocols
(e.g., related to wetlands, riparian corridors or brownfields);
pollution and pesticide impacts; and water quality monitoring.
--Freshwater Ecosystems Symposium.--Bringing together researchers,
practitioners, and policy makers from a broad range of
academic, government, and private sector entities, the
symposium will provide an opportunity for diverse stakeholders
to address current understanding of and approaches to managing
and conserving freshwater systems. Sessions will address both
ecological principles (hydrology, biogeochemistry,
connectivity, etc.) and the resources in the manager's toolbox
(such as reserves, flow management, riparian buffers,
headwaters protection, restoration, integrated basin
management, education and outreach on invasive species, and
more). Proceedings will be disseminated widely and made
available on the web.
The Museum requests $1 million for this research, training, and
public education initiative on the role of water in sustaining healthy
communities, ecosystems, and the environment in which we live. In
partnership with EPA, and with the Museum supporting its participatory
share with funds from non-Federal as well as Federal sources, we will
use cutting-edge technologies to advance basic and applied research,
integrated with public education and outreach, to promote shared goals
for safeguarding the natural environment.
______
Prepared Statement of the Points of Light Foundation
The Points of Light Foundation and Volunteer Center National
Network request an appropriation increase from $10 million to $35
million. $10 million would maintain the allocation to the Points of
Light Foundation for its work at the national level. $25 million would
be distributed to Volunteer Center members of the Points of Light
Foundation for three purposes:
--to expand the number of people engaged in traditional voluntary
service;
--to build the capacity for effective engagement of volunteers by
training nonprofit agencies in volunteer management;
--to expand operations so Volunteer Center services, which are
currently available to approximately 50 percent of the
population, are available to closer to 100 percent of the
population of the United States.
BACKGROUND
Our American ideal is one of democracy, of civic engagement, and of
individual participation in collective goals. To be successful as a
form of government and as a society, democracy demands that people take
responsibility for their communities, that they play an active role,
that they be informed, and that they weigh and consider options before
deciding on a course of action. The traditions upon which our country
was founded and built have influenced the development of our spirit of
volunteerism. Whether Native Americans, early immigrants, pioneers or
more recent immigrants, Americans have always placed value and emphasis
on hard work and self-reliance, on taking responsibility for our own
life and actions.\1\
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\1\ Lautenschlager, Janet, Department of Canadian Heritage, 1992.
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Traditional community volunteering, in which individuals serve
willingly and without expectation of financial remuneration, is perhaps
the purest expression of both civic responsibility and civic
engagement. The altruistic inclinations of individuals and groups are
both strengthened and fulfilled through voluntary participation in
activities that meet important needs in local communities. When people
volunteer, they are indicating that they are part of the solution, not
part of the problem. The benefits that inure to the traditional
volunteer are significant and include a sense of fulfillment, of giving
back to the community, and of inclusion in the broader world. People
who volunteer feel connected to their society and, as such, have a
deeper and broader sense of civic responsibility.
Volunteer Centers in local communities provide the pivotal link
between this human ideal of connectedness and its expression in the
real world. They strengthen communities by connecting people with
important local needs, and they strengthen organizations by building
their capacity to effectively engage traditional volunteers.
The work of Volunteer Centers is focused in four areas:
--connecting people with opportunities to serve by maintaining
knowledge through database reservoirs of volunteer
opportunities in local communities; Volunteer Centers presently
aggregate approximately 1.5 million valid, vetted opportunities
for traditional volunteer service at public and private
agencies.
--building capacity for effective local volunteering by providing
training for nonprofit agencies in volunteer program
management. The Points of Light Foundation & Volunteer Center
National Network have developed an outstanding six-session
Volunteer Management Training Series that can be delivered by
skilled Volunteer Center leaders to agencies.
--promoting volunteering through recognition and awards programs and
by extensive outreach through traditional and electronic media
to people in local communities where they live, work, go to
school, and worship.
--participating in strategic initiatives that mobilize volunteers to
meet important needs in local communities; utilizing their vast
knowledge of communities and problems, the Volunteer Center
National Network can serve as conveners, bringing relevant
players to the table to address local issues. For example,
Volunteer Centers are an integral part of Earned Income Tax
Credit education and filing, and that they help communities
prepare for, respond to and recover from disaster. They are
also collaborators, working closely with stipended service
programs to ensure integrated services to those engaged in both
stipended and non-stipended service.
THE PROBLEM
The current budget includes nearly $1 billion to support domestic
volunteer programs. However, there is virtually no support at the
Federal level for the important work of engaging traditional volunteers
in community service activities.
The request of the Points of Light Foundation & Volunteer Center
National Network is that an additional $25 million be allocated to
support the efforts of Volunteer Centers to reach the 99 percent of
Americans who will likely never participate in stipended service, but
who may, if connected to volunteer opportunities and managed
effectively, participate in traditional volunteer activities.
THE SOLUTION--A RATIONALE FOR REQUESTED FUNDING
Several recent studies provide the rationale for this request.
Connecting people with opportunities to serve.--The Pew Partnership
\2\ found that not only are many citizens are unaware of whom to turn
to for information about community needs, but that ``the challenge for
community problem solving efforts lies in knowing how to connect
community issues with a public willing to work to solve them.''
Furthermore, ``almost 40 percent of people who do not volunteer say
that their lack of knowledge about which organizations needed their
help or who to call contributed to their inaction.''
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\2\ http://www.pew-partnership.org/programs/civicengagement.
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Building capacity for effective volunteering.--The findings of a
1998 study by UPS \3\ substantiate a crisis in volunteer management
because volunteers expect the time they donate to be well managed, but
too many are turned off by what they regard as inefficient use of their
time by the agencies where people volunteer.
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\3\ United Parcel Service, 1998.
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Another study,\4\ prompted by questions raised following President
Bush's call to service in his January 2002 State of the Union address,
found that the call for thousands of new volunteers will not, by
itself, create effective engagement of those volunteers. There must be
a companion effort to ensure that volunteers are trained effectively,
deployed in meaningful ways, supervised and recognized appropriately so
that the volunteers can, in turn, deliver quality services to their
communities. The study concludes that it will be necessary to increase
the community capacity to accommodate the gifts of time and service
provided by volunteers.
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\4\ The Cost of a Volunteer, Grantmaker Forum on National and
Community Service, 2003.
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The Urban Institute \5\ reports that the problems that charities
face in training and supervising volunteers could be alleviated if
their staff received training on how to work with volunteers.
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\5\ The Urban Institute, 2004.
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CAPACITY TO CARRY OUT INTENDED WORK
At the present time, the more than 350 Volunteer Center members of
the Points of Light Foundation focus on traditional volunteering across
the country. They vary tremendously in size and structure, but all
operate within four core areas of competency outlined above: they
connect people with opportunities to serve, build capacity for
effective volunteering, promote volunteering, and participate in
strategic partnerships that mobilize volunteers to meet community
needs.
Their budgets vary from $25,000 to $7 million per year, and the
size of their service areas ranges from small rural communities to
large metropolitan areas. All Volunteer Centers raise a significant
amount of local and State funds and Federal resources will be used to
build upon this foundation. Volunteer Centers provide essential
infrastructure to support traditional volunteering. Every year
Volunteer Centers:
--connect 2 million people with opportunities to volunteer in their
communities;
--train more than 200,000 leaders from the public and private sector,
including many corporate leaders, increasing their ability to
mobilize more traditional volunteers;
--build capacity of more than 72,000 community and faith-based
organizations to productively engage volunteers.
The first Volunteer Center was founded in Minneapolis in 1919. With
the formation of the Points of Light Foundation in 1990, Volunteer
Centers across the country began the process of forming an integrated
network, beginning with adoption of a common vision and values
statement:
Vision.--Volunteer Centers mobilize people and resources to deliver
creative solutions to community problems.
Values.--We value:
--PEOPLE and believe that through volunteer service people have the
capacity to enrich their own lives and improve the quality of
life in their communities;
--DIVERSITY and recognize that all people have time and talents to
share, and that communities are strengthened when people
connect across their differences through volunteer service;
--COLLABORATION and realize that we are at our best when we
collaborate;
--EXCELLENCE and commit to implementing innovative and effective
strategies, holding ourselves accountable for results, and
sharing our knowledge and best practices with others.
Building on the vision and values, the Volunteer Center National
Network developed and now requires that every Volunteer Center meet
Standards of Excellence in order to be a member of the Points of Light
Foundation & Volunteer Center National Network.
SUMMARY
Communities suffer when there is not a strong Volunteer Center to
serve them. At the present time, some Volunteer Centers--typically the
larger, more established independent centers with broad-based funding
from a variety of sources--are able to provide multiple services, are
often quite entrepreneurial in their approach to programming, and
operate with a business model. Other Volunteer Centers experience
difficulty providing optimal levels of service because of their
continual challenge to raise operating funds. The result is that
traditional volunteering suffers because fewer individuals and groups
are aware of the opportunities that exist, and fewer organizations are
trained in effective volunteer management.
With increased investment, Volunteer Centers across the country,
regardless of their age, size or structure, will play a crucial role in
strengthening communities. Volunteer Centers will enhance and expand
their activities to engage more people in volunteer service and to
build the capacity of more organizations in effective volunteer
management. Where appropriate, Volunteer Centers will also expand
operations to establish satellite offices providing access where there
currently is none. In small communities with small Volunteer Centers,
financial support from the Federal Government can leverage significant
local donations that result in increases in both volunteering and
effective volunteer management by enabling the Volunteer Center to
provide these important services. Finally, where there presently is
demand, but no Volunteer Center, new Volunteer Centers can be
established.
The Points of Light Foundation provides significant program
support, a decade of experience in regranting funds, and the
demonstrated ability to effectively establish and monitor performance
standards. The organization's unique qualifications are also predicated
on its ability to provide cost-effective regranting and ensure
compliance with all Federal guidelines.
Our country is built on the willingness of people to get involved
and stay involved in their communities. Now, more than ever, we need
the civic participation of every American to keep our communities and
our Nation strong. The investment of $10 million in the Points of Light
Foundation and $25 million in the Volunteer Center National Network
will reap significant rewards for our country that will resonate--with
great cost-effectiveness--well into our future.
We are well poised to strengthen traditional volunteering by
delivering expanded services to communities across the country.
We know volunteer services work and we want and need your help to
make sure all Americans have access to a Volunteer Center that meets
stringent standards of excellence, can help them connect to meaningful
volunteer opportunities, and can help local agencies manage their
volunteers effectively. On behalf of all of those who work in the field
of volunteer service we want to thank the committee for their strong
interest and investment in making volunteering a part of every
American's life. Because of your work on this issue, millions of
Americans who need help receive aid and assistance from millions of
local volunteers.