group that provided high priority outputs of flood damage prevention and commer cial navigation and had benefit-cost ratios of at least 1.2 to one. The second step wa to request the local sponsors of these projects to provide implementation in accor ance with the cost sharing and financing provisions of the agreement between the Administration and the Senate Majority Leadership. The projects for which th sponsors were contacted are as follows:

Question. Please provide the federal statute citation on which the Corps based it decision to require, as a part of the cost sharing agreement, the local sponsors 1 agree to a specific cost sharing arrangement not required by current law.

Answer. The Secretary of the Army is authorized to receive nonfederal contrins tions to be expended in connection with funds appropriated by the United States authorized water resources activities pursuant to the provisions of Section 4 of th Act of March 4, 1915 (38 Stat. 1053; 33 USC 560) and Section 1 of the Act of July ! 1937 (50 Stat. 518; 33 USC 701h). Moreover, nonfederal participation in the wate resources projects that are authorized by the first paragraph of Chapter IV of th Supplemental Appropriations Act, 1985 (P.L. 99-88) is to be "... under terms conditions acceptable to the Secretary of the Army (or under terms and conditions provided for in subsequent legislation when enacted into law) . . .".

Question. Other than the 1915 and 1937 laws which permit, but do not requrt the Corps to collect non-federal contributions, in instances where the Corps is re quiring cost sharing for activities on which current federal law does not requir such cost sharing, what is the legal basis for this action?

Answer. As you recognized, we are authorized to receive non-Federal contribu tions to be expended in connection with funds appropriated by the United States 11 authorized activities. For all new starts, we have been working closely with ta sponsors of the projects that were authorized by the first paragraph of the FY 198 Supplemental. Construction is to be initiated with funds appropriated by the S plemental, provided that the contractual terms and conditions of the required agres ments are acceptable to the Secretary of the Army.

Question. Doesn't this action, of requesting at least some of the local sponsors sign such an agreement, undermine the validity and legitimacy of all data whad the Corps may have collected on behalf of the President concerning willingness non-Federal sponsors to assume a non-Federal project cost share level in excess that required by current law?

Answer. No. The voluntary participation by the sponsors of these projects h helped support the validity of the proposals for increased cost sharing and financ during construction. Our success to date in getting letters of assurance for the quired participation underscores the value of these projects both from an economi and a marketing standpoint.

Mr. BEVILL. This committee now stands adjourned until 10:0 o'clock in the morning.

WEDNESDAY, FEBRUARY 19, 1986.

FY 1987 REMAINING ITEMS AND FY 1986 TRANSFER

BUDGET REQUEST

WITNESSES

AJ. GEN. HENRY J. HATCH, DIRECTOR OF CIVIL WORKS

ON B. CLUFF, CHIEF, PROGRAMS DIVISION, CIVIL WORKS

E L. ADKINS, ACTING CHIEF, DREDGING DIVISION, WATER RESOURCES SUPPORT CENTER

PT. JACK M. BEARD, ATTORNEY ADVISOR (INTERNATIONAL AGREEMENTS) AND SPECIAL ASSISTANT FOR U.S.-CHINA AFFAIRS, OFFICE OF CHIEF COUNSEL

WIS H. BLAKEY, CHIEF, PLANNING DIVISION, CIVIL WORKS

CHARD J. COLVER, DEPUTY DIRECTOR OF INFORMATION MANAGEMENT

ØYD A. DUSCHA, DEPUTY DIRECTOR OF ENGINEERING AND CONSTRUCTION

RL E. EIKER, ACTING CHIEF, HYDRAULICS AND HYDROLOGY DIVISION, CIVIL WORKS

CIL G. GOAD, CHIEF, OPERATIONS AND READINESS DIVISION, CIVIL WORKS

ENRY S. POINTON, JR., ASSISTANT CHIEF, PROGRAMS DIVISION, CIVIL WORKS

LLIAM E. ROPER, ASSISTANT DIRECTOR OF RESEARCH AND DEVELOPMENT (CIVIL WORKS)

RY STEINBERG, CHIEF, POLICY, REVIEW, AND INITIATIVES DIVISION, CIVIL WORKS

Mr. BEVILL. The meeting will come to order.

We are glad to have each of you here again. General Hatch, proed as you wish.

STATEMENT OF GENERAL HATCH

INTRODUCTION

General HATCH. Sir, I will begin with my summary remarks, and will provide the information in a more detailed statement for e record.

Again, sir, I am honored to appear before you. With me at the ble are Mr. Don Cluff, to my immediate right, Chief of our Proams Division, introduced yesterday; and also Dr. Bory Steinberg, r Chief of Policy, Review, and Initiatives Division, who was with yesterday. To my left, Dr. Lewis Blakey, Chief of the Planning vision, and Dr. William Roper, our Assistant Director of Rearch and Development for Civil Works.

Mr. BEVILL. You've got a lot of brains around you here this orning.

General HATCH. We do have a lot of them, sir.

Let me point out one other member in the room. As you know, most of the folks behind me are from the Corps and they will assist me if I get into trouble, but I would like to point out the senior engi neer of the Corps of Engineers who is with me today, Mr. Lloyd Duscha, who is our Deputy Director of Engineering and Construc tion.

Mr. BEVILL. Good to have you with us.

General HATCH. Also I would like to highlight some of the 1987 budget requests for Remaining Items. I will also discuss the trans fer request for FY 1986, which involves the transfer of $3 million a O and M funds to the General Expenses Appropriation. Then I will ask Dr. Roper to present a very brief overview and representative sampling of some of our current R and D activities and recent se complishments.

REMAINING ITEMS TOTALS

The total budget request for Remaining Items is $313.7 million, which $42.8 million is for General Investigations; $88 million for Construction, General; $30.9 million for Operation and Maintenance General; $25 million for Flood Control and Coastal Emergencies $115 million for General Expenses; and $12 million for the Revolv ing Fund.

GENERAL INVESTIGATIONS

Major items under General Investigations include Cooperation with Other Federal Agencies, States, and Non-Federal Interests, a well as Foreign Governments, $6.5 million; Collection and Study d Basic Data, $12.8 million, of which the largest portion is $8.8 mil lion for Flood Plain Management Services, and $1.8 million for Coastal Field Data Collection; and Research and Development, $2 million.

COOPERATIVE EFFORTS WITH FOREIGN GOVERNMENTS

In recent years, the Corps has been requested on several occ sions to cooperate with the governments of developing nations by evaluating the country's needs for assistance on development water and related land resources, by exchanging scientific and technological information, and by providing technical advice. Ge erally, such cooperation and assistance has been provided on beha of or in conjunction with the foreign programs of other U.S. Go ernment agencies, such as the Trade and Development Program d the International Development Cooperation Agency, and the Agency for International Development, both of the Department State; or through offices of the Departments of Commerce and Transportation; or through a multi-national organization in whic the U.S. Government participates, such as the United Nations De velopment Program.

On occasion, the Corps is also requested to collaborate with the agencies of nations having more mature economies, by engaging 13 mutually beneficial research activities, by exchanging useful scien tific and technological information and expertise, or by participat ing in other cooperative activities in water resources science an

hnology. The spectrum of the Corps' cooperation with foreign ernments in water resources may include such activities as: exange of scientific data and technical publications, handbooks, manuals; seminars and workshops in the United States and road; training programs; joint research projects; exchange of spelists and experts; and special studies and technical advice in ter resources development.

Benefits to the United States from Corps participation in these ivities include: improved U.S. knowledge and expertise, with valle research and development opportunities; increased opportues for involvement of private-sector American architect-engiers and contractors; facilitating realization of the potential ort markets for American firms supplying construction equipnt, pumps, turbines, generators, and other electrical equipment, scientific and engineering instruments; improved U.S. knowle and expertise; enhanced mobilization and construction capaty; and enhanced U.S. image through assistance to developing ions.

n almost all cases, the Corps cooperates with foreign governnts on a reimbursable basis; that is, we do not request funds for se activities. However, where the cooperative activities are arly of mutual benefit to the Corps and to the foreign governnt or its agency, particularly in the research and development a, each side bears the expenses of its own participation in these ivities.

Heretofore, the Corps has been engaged in a very modest level of se mutually beneficial scientific and technological activities hout explicitly budgeting for them, and it has been funding m on an ad hoc basis and not out of a single account. During period, the Corps has informed the Appropriations Committees staffs on these activities, usually informally and orally, but on asion in regular oral testimony and through written questions-answers and inserts-for-the-record.

t is considered prudent that the expenses associated with and t will be incurred as a result of certain cooperative efforts with eign governments will be charged to a new fiscal sub-item enti"Cooperative Efforts with Foreign Governments," in the GenInvestigations appropriation structure under the retitled fiscal 8 "Cooperation with Other Federal Agencies, States, non-Federnterests, and Foreign Governments"; that this program be idened to the Appropriations Committees in the budget justification ets; and that clear statutory authority for expenditures under 5 program be enunciated by having the Appropriation Act lanage contain this General Investigations proviso: "Provided, that 0,000 is available for Cooperative Efforts with Foreign Governnts pertaining to river and harbor and flood control improve

nts.'

FLOOD PLAIN MANAGEMENT SERVICES

Jnder our Flood Plain Management Services Program, we come and disseminate data on floods and flood damage potential, 1 we provide guidance on flood-related planning to Federal, ite, and local agencies to support planning and implementation

actions which reduce the flood hazard through wise use of flo plains. In 1985, we responded to 62,000 requests from Federal an non-Federal agencies, communities, firms, and individuals for floo related information, interpretation, and guidance related to prope ties valued at over $10 billion.

COASTAL FIELD DATA COLLECTION

To properly accomplish our coastal engineering mission, inclu ing planning, design, construction, and operation and maintenan of coastal and lake navigation, flood control, and shore protecti projects, the Corps requires a good understanding of dynamic fore that are at play in the coastal zone. We need reliable, high-qualit long-term data on winds and waves; severe storm and hurricane fects; tidal and longshore currents and water levels; erosion and cretion rates; shoreline and beach profile changes and trends; se ment characteristics and sources; and the interrelationships ama these significant parameters. Such data are presently not general available, or are unreliable and of poor quality.

The Coastal Field Data Collection Program, managed by Coastal Engineering Research Center of our Waterways Expe ment Station, currently develops some of the more critical inform tion, but only for limited areas of the U.S. coastline. Its outputs a widely used by others in Government and by the academic and

vate sectors.

RESEARCH AND DEVELOPMENT

The R and D budget request under General Investigations is & million. It is an excellent investment in improving efficiency an reducing costs. It has been producing early and continuing payof from new technological applications, increased reliability and effe tiveness, more assured safety, and better decision-making.

CONSTRUCTION, GENERAL

The $88 million request for Construction, General items includi $48 million for the six Small Projects Programs under Continuit Authorities, $21 million for the Dam Safety Assurance Program. million for Aquatic Plant Control, and $11 million for Employe Compensation Payments to the Department of Labor.

CONTINUING AUTHORITIES PROGRAMS

The budget request for the Small Projects Programs reflects co tinuation of the changes we have made in these programs this es rent year, namely: cost sharing of decision document studies and the projects, paralleling that for specifically authorized studies a projects; prioritizing the meeting of major needs for flood dama protection, commercial navigation, and emergency bank protectio and according a low budget priority to primarily recreat projects. The Continuing Authorities Programs of Small Proje remain popular, and we are confident of our sustained success wi them in the future.