ENERGY AND WATER DEVELOPMENT WEDNESDAY, FEBRUARY 16, 1983 U.S. SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, D.C. The subcommittee met at 2:40 p.m. in room SD-192, Dirksen Senate Office Building, Hon. Mark O. Hatfield (chairman) presiding. Present: Senators Hatfield, Abdnor, Domenici, Johnston, Stennis, and Burdick. DEPARTMENT OF THE ARMY OFFICE OF THE ASSISTANT SECRETARY OF THE ARMY (CIVIL Works) OFFICE OF THE CHIEF OF ENGINEERS-CIVIL STATEMENT OF WILLIAM R. GIANELLI, ASSISTANT SECRETARY OF THE ARMY (CIVIL WORKS) ACCOMPANIED BY: LT. GEN. J. K. BRATTON, CHIEF, CORPS OF ENGINEERS COL. PAUL KAVANAUGH, EXECUTIVE DIRECTOR, CIVIL WORKS OPENING REMARKS Chairman HATFIELD. The hearing will come to order. First of all, my apologies; we had a vote on the floor so that is why I was late. The purpose of our meeting is to review the fiscal year 1984 budget request of the programs and activities of the Army Corps of Engineers. As our first witness, we welcome Mr. William Gianelli, Assistant Secretary of the Army for Civil Works. Mr. Secretary, we look forward to your full review of the Corps' budget request. In addition, we are also pleased to welcome Lt. Gen. Joseph K. Bratton, Chief of Engineers, Col. Paul Kavanaugh, Executive Director of Corps Civil Works Directorate, and Mr. Bory Steinberg, Chief of the Directorate's Programs Division. Mr. Gianelli, your full statement will be included in the record, but before you do that, I would like to yield to my good colleague and friend, the ranking minority member of this committee, Senator Johnston, for any opening remarks he may have. (1) Senator JOHNSTON. Mr. Chairman, I have no remarks except to welcome our good friends here today. They do such a good job for the country and the Corps. Mr. Chairman, I look forward to working with you on the new jobs bill which, as I understand it, will be centered heavily around the type of work we are familiar with in this committee, which is where the jobs bill ought to start to build America's infra structure. Chairman HATFIELD. Thank you very much. Senator Stennis, do you have any opening remarks? Chairman HATFIELD. Senator Abdnor? Senator ABDNOR. I, too, would like to welcome Secretary Gianelli to our hearing. I am looking forward to being with him tomorrow in our Water Resources Committee. I am sure I will have questions later. Welcome to the committee. Chairman HATFIELD. Thank you, Senator. Mr. Secretary, you may proceed now to summarize as you wish. PREPARED STATEMENT Mr. GIANELLI. Thank you very much, Mr. Chairman, members of the committee. I would like to proceed by asking that my complete statement be placed in the record of this hearing. Chairman HATFIELD. It will be, without objection. [The statement follows:] STATEMENT OF ASSISTANT SECRETARY WILLIAM R. GIANELLI I. INTRODUCTION I am pleased to appear before your subcommittee today to discuss the Army's Civil Works Program and FY 1984 Budget recommendations. The Chief of Engineers, Lieutenant General Joseph K. Bratton, the Director of Civil Works, Major General John Wall, who today makes his first appearance before you as Director, and the Chief of Programs, Bory Steinberg, are with me and will assist in presenting testimony. With your permission, Mr. Chairman, I would like to proceed by asking that my complete statement and that of General Bratton be placed in the record of these hearings. I would like to summarize portions of my complete statement, and I ask that the Chief be permitted also to summarize his statement, following which we will be available to answer the subcommittee's questions. A year ago, in my first appearance before you, I expressed the hope that the subcommittee would be able to support our proposals, particularly those proposals to enable new water projects to go to construction in these times of severe budgetary limitations. The Department has further proposals in this and other important areas for FY 1984, and I again hope that these will merit the subcommittee's support. My statement addresses seven topics: > Implementation of the Continuing Resolution for FY 1983; > FY 1984 budget summary including status of FY 1982 concerns; > Innovative Financing and Cost Sharing; > The Corps' Recreation Program; > Regulatory Relief; > Other policy initiatives and concerns; and > Mount St. Helens. The Continuing Resolution for FY 1983, P.L. 97-377, according to our reading, makes available $2.968 billion for the Army Civil Works Program. This amount, which is exclusive of permanent appropriations, includes $180 million more than it is estimated the Corps will need this year for the Construction, General appropriation account and not enough for the O&M, General and MR&T accounts. Accordingly, a transfer of $140 million from Construction, General to O&M ($110 million) and to MR&T ($30 million) is considered necessary and desirable and is proposed for consideration by Congress in a FY 1983 supplemental transmitted with the budget documents for FY 1984. The remaining $40 million has been deferred and would be available for productive use in FY 1984. The "current rate of operations" criterion, which dictates the amount available for O&M, General under the CRA, provides less than the funds required to carry out a normal operation and maintenance program for civil works projects. Approval of the proposed transfer would assure a sound and effective Civil Works Program for FY 1983. III. FY 1984 BUDGET SUMMARY INCLUDING STATUS OF FY 1982 CONCERNS The net FY 1984 budget request for the Civil Works Program totals $2.102 billion. This net request takes into account offsetting receipts estimated at $492 million, of which $454 million would be realized under revised navigation and recreation user fee legislation supported by the Administration. The gross request thus amounts to $2.594 billion which, together with the $40 million available from this year's deferral, is approximately a four percent reduction from last year's request. This is the first time that the request for Operation and Maintenance, General funds exceeds those requested for Construction, General. However, the budget includes new starts in several categories which were not included in last year's budget and provides a level of operation and maintenance funds that is more |