AGRICULTURE-ENVIRONMENTAL AND CONSUMER PRO- TECTION APPROPRIATIONS FOR FISCAL YEAR 1972 HEARINGS BEFORE A U.S. Congress, SUBCOMMITTEE OF THE 1 NINETY-SECOND CONGRESS FIRST SESSION ON H.R. 9270 AN ACT MAKING APPROPRIATIONS FOR AGRICULTURE- 62-012 O Printed for the use of the Committee on Appropriations U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 1971 EPARTMENT OF AGRICULTURE AND RELATED AGENCIES APPROPRIATIONS FOR FISCAL YEAR 1972 THURSDAY, MAY 13, 1971 SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, U.S. SENATE, Washington, D.C. The subcommittee met at 10 a.m. in room 1318, New Senate Office DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT STATEMENT OF HON. GEORGE ROMNEY, SECRETARY ACCOMPANIED BY: SAMUEL C. JACKSON, ASSISTANT SECRETARY FOR COMMUNITY NATHANIEL J. EISEMAN, DEPARTMENTAL BUDGET OFFICER BASIC WATER AND SEWER FACILITIES Senator MCGEE. The Subcommittee on Agriculture-Environmental and Consumer Protection of the Committee on Appropriations and related agencies will come to order. This morning we will hear from the Department of Housing and Urban Development in reference to its program grants for basic water and sewer facilities for 1972. BUDGET SUMMARY The Department has not requested any new or additional appropriations to fund this program in fiscal 1972. It is proposed, however, that $100 million will be made available from fiscal 1971 funds which have not been obligated for use in this year. This amount will be available for use in the first 6 months of fiscal 1972, at the conclusion of this time the program is scheduled to be included in the proposed urban community development special revenue-sharing program. JUSTIFICATION For fiscal 1971, this program carried an appropriation of $350 million, of which it is planned to obligate approximately $150 million with $200 million to be carried over. At this point the justification for the program will be made a part of the record. (The justification follows:) (2241) DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT GRANTS FOR WATER AND SEWER FACILITIES Purpose Statement Title VII of the Housing and Urban Development Act of 1965, as amended, authorized a program of water and sewer facilities grants. The purpose of the program is to: a. promote sound and orderly community development by using water and sewer grants to implement specific projects in conformity with comprehensive planning for the orderly evolution of urban and urbanizing areas; b. help communities meet growing needs for water and sewer facilities; and C. support National housing goals. To achieve these objectives, the program provides grants up to 50% (except under certain prescribed conditions when 90% grants are permitted) for: a. b. the development of storage, treatment, purification, and transmission facilities and the development of water distribution systems. the collection and transmission of domestic, municipal, and industrial wastes and storm drainage excluding waste treatment facilities. The program has enabled the Department to provide financial assistance to communities with limited resources to provide needed public services for their citizens However, water and sewer system development can contribute much more than basic service facilities. Communities that initiate wisely planned projects are responding effectively to social, economic and health needs as well. frequently trigger local employment opportunities, promote an increased housing Such projects supply, improve public health conditions by restoring or maintaining local water quality standards, and provide an atmosphere conducive to economic growth. The water and sewer grant program is administered under the direction of the Assistant Secretary for Community Development. The processing of applications is a field operation in accordance with the guidelines and policies developed by the Assistant Secretary. The Department is also a member of an interagency committee established to coordinate Federal assistance for the development of water and sewer projects or waste treatment facilities. Representation on this committee includes the Departments of Agriculture and Commerce and the Environmental Protection Agency along with HUD. (1) A decrease of $350,000,000 is proposed in the appropriation for Grants for water and sewer facilities in fiscal year 1972 ($350,000,000 appropriated in 1971).. No appropriation is requested for 1972. However, it is proposed that an unreserved balance of $200,000,000 be carried forward from fiscal year 1971 which will be used to provide $100 million in grants during the first six months of 1972. This six month program results in a decrease of $50,043,467 from the full year program of $150,043,467 for fiscal year 1971. The Budget anticipates that the new Urban Community Development Special Revenue Sharing program will become effective on January 1, 1972. The new program would replace assistance presently being offered under the Water and Sewer Grant program along with current programs for Urban Renewal, Modél Cities and Rehabilitation loans. |