1/ Projects designated FY 1983 were included in the FY 1983 new starts budget amendment submitted to Congress by the President on May 25, 1982. 2/ 1 October 1982 prices inflated through the construction period. 3/ Project has now been deauthorized as local sponsors intend to construct the project on their own. CONTINUING RESOLUTION FOR FISCAL YEAR 1983 Mr. GIANELLI. I would like to summarize seven topics covered in m complete statement, and I ask that the Chief be permitted also to sum marize his statement, following which, Mr. Chairman, we will be avai able to answer the committee's questions. The continuing resolution for fiscal year 1983, according to our reas ing, makes available $2.968 billion for the Army's civil works program This includes $180 million more than is estimated the Corps will nee this year for the construction, general, account, but not enough for operation and maintenance, general, and the flood control, Mississip River and tributaries accounts. Accordingly, a transfer of $140 milli from the construction, general, account with $110 million to the oper tion and maintenance account and $30 million to the Mississippi Riv and tributaries account is considered necessary and desirable and proposed for consideration by Congress in a fiscal year 1983 suppleme tal transmitted with the budget documents for fiscal year 1984. T remaining $40 million has been deferred and would be available productive use in fiscal year 1984. Approval of the proposed transf would assure a sound and effective civil works program for fiscal y 1983. FISCAL YEAR 1984 BUDGET SUMMARY The net fiscal year 1984 budget request for the civil works progra totals $2.102 billion. This net request takes into account offset receipts estimated at $492 million, of which $454 million would be alized under revised navigation cost recovery and recreation user legislation supported by the administration. The gross request th amounts to $2.594 billion, which, together with the $40 million ava able from this year's deferral, is approximately a 4-percent reducti from last year's request. The $906 million requested for construction, general, together w the $40 million deferral, is the amount necessary to maintain sched on all continuing projects included in the fiscal year 1984 budge also provides funds to initiate five new starts. The $1.161 billion requested for operation and maintenance, gener is $150 million higher than last year's request and will provide suffici funds to operate and maintain deep-draft harbors and inland waterw consistent with commercial traffic requirements. Similarly, the $290 million requested for the Mississippi River tributaries account includes a substantial increase in funds for main nance. The performance of a number of existing structures in the rec December-January floods is indicative of the benefits they provide large geographic areas in the lower Mississippi Valley and the need maintain them. INNOVATIVE FINANCING AND COST SHARING This subcommittee is as aware as anyone of the unfortunate course new water project authorization and construction starts during the decade. There were small authorization bills in 1974 and 1976, but omnibus bill has passed in the 6 subsequent years. The seventies w also a period of very limited new construction starts and, for the first time, Corps O&M outlays will exceed construction outlays in fiscal year 1984. In spite of the difficulties faced by water projects, I certainly know you recognize that water problems are not going to go away. The issue which confronts both the administration and the Congress is on what terms will Federal assistance be provided to address these and other kinds of water problems in this age of great budget austerity. Federal money is simply not available for new initiatives nor, indeed, is it available to continue old programs at their previous levels under historic formulas. To ignore these realities, we believe, invites further stalemate in the utilization of our Nation's water resources. New cost-recovery programs are imperative for ongoing operation and maintenance costs of existing projects as well as for federally financed costs of new projects and innovative financing, we believe, is a must for new projects. We are proposing initiation of five additional projects with innovative financing in fiscal year 1984, and we hope that our new starts will clearly show that longer term programmatic change is both possible and desirable. REGULATORY REFORM Following the May 7, 1982, directive to the Corps from the Presidential Task Force on Regulatory Relief, interagency agreements have been revised to provide a one-step resolution process and it occurs only with the concurrence of the Assistant Secretary of the Army for Civil Works. We are talking about the elevation process with respect to the section 404 permit program. In July, we published interim final regulations which increased the ase of general permits and improved the decisionmaking process without diminishing our compliance with statutory requirements. Soon we will be proposing additional regulations which will clarify the jurisdictional scope of the 404 program and expand the use of general permits to eliminate unnecessary duplication of governmental effort. I believe that true and lasting reform of this program will bring conderable relief to the Nation while still safeguarding water quality. MOUNT ST. HELENS The Corps' ability to respond to emergency and crisis situations was put to the test during the past year. We have just had the Mississippi Valley floods, the effects of which are still being felt. General Bratton will report to you on that situation. As you know, we also have been confronted in the past year with a series of crises at Mount St. Helens, Even though it is almost 3 years since the May 18, 1980, eruption. The major crises have been: First, the threat of catastrophic flooding in the Toutle, Cowlitz, and Columbia Rivers due to the potential uncontrolled release of waters from Spirit Lake; and, second, the reduction in the evel of flood protection afforded to the developed communities along he Cowlitz River such as Kelso, Longview, Castle Rock, and Lexington a result of sediment deposit in the Toutle and Cowlitz Rivers. To address the Spirit Lake problem, the Corps last fall completed an interim emergency pumping installation at a cost of approximately $9 million, which was made available from the $18 million appropriated in the 1982 Urgent Supplemental. The pumping thus far has prevented the lake level from rising further and posing a threat of overtopping with potential flooding downstream. The Corps has also raised levees along the Cowlitz River to provide an additional level of flood protection. The cost of this work is $3.1 mil lion, which has also been funded out of the money provided in the ur gent supplemental. To provide additional safety, the Corps is now dredging silt material from the Toutle River. By next spring, an esti mated 3 million yards will have been excavated at a cost of $3.85 million. Mr. Chairman, this completes my brief summary. If General Bratton could proceed, we both will be available to answer questions. Chairman HATFIELD. Thank you, Mr. Secretary. General Bratton, you may proceed. STATEMENT OF LT. GEN. JOSEPH BRATTON, CHIEF, U.S. ARMY General BRATTON. Thank you, Mr. Chairman. It is a privilege to ap pear before this committee for the third year as Chief of Engineers. I propose to make a short oral statement to supplement my written tes timony, which I ask be included in the record. Chairman HATFIELD. It will be included in the record at this point. [The statement follows:] STATEMENT OF LT. GEN. J. K. BRATTON INTRODUCTION Mr. Gianelli has presented an overview of our current and proposed programs, including some of the new starts and applicable cost sharing and financial proposals that are integral to the Fiscal Year (FY) 1984 budget. I first will discuss how we propose to operate in FY 1983 under the Continuing Resolution Authority (CRA), and provide additional information on the FY 1984 budget. A table summarizing the funding levels of the individual appropriation titles for the period FY 1982-1984 inclusive attached for the Subcommittee's ready reference. I also will report on the Corps response to recent flood emergencies, give a short status report on the Corps dredge fleet, discuss how we are complying with the changes in our employment ceilings, and report on the restructuring of our backlog. is FISCAL YEAR 1983 PROGRAM Overview Based on our review of the CRA for FY 1983, we have determined that the total amount of spending authority made available for the Corps of Engineers Civil Works program is $2,968 million, exclusive of permanent appropriations. This is adequate to carry out the program in an efficient manner. For each appropriation account, the amount of FY 1983 new spending the SO authority equals the amount obligated in that account in FY 1982 called "current rate." The breakdown by account of the current level leaves us short of funds in certain accounts and with excess spending authority in others. Accordingly, certain adjustments between accounts have been proposed. In addition, a $40 million deferral of excess Construction, General funds has been proposed which reduces the amount of available spending authority provided by the CRA to $2,928 million. All of these funds, plus the unobligated carryover from FY 1982, have been apportioned by the Office of Management and Budget. Four appropriation accounts warrant mention. General Investigations The current rate for General Investigations in FY 1983 under the CRA is $129.042 million, approximately the same as the FY 1983 budget. This amount |