PRESIDENT BUSH UNVEILS HIS FY2006, $2.5 TRILLION BUDGET
On February 7, President George W. Bush laid out his budget priorities for the FY2006 fiscal year. Other than mandated increases for entitlement programs, defense and homeland security were the primary targets for increases. The budget is marked with numerous proposals for reducing overall agency spending, cutting domestic discretionary spending by 1 percent (plus inflation) and eliminating programs.
The President’s budget proposes a 5.6 percent overall reduction for the Environmental Protection Agency. FY2005 spending is enacted at $8 billion. The FY2006 spending level is proposed to be $7.6 billion. Nearly all of the savings come from a proposed 33 percent cut to the Clean Water State Revolving Fund. The remainder of the EPA budget scores out at minimal increases or decreases to existing programs.
Highlights of EPA’s proposed budget include:
REVOLVING FUNDS. The Clean Water State Revolving Fund (CWSRF) is proposed to be reduced by $361 million or a total funding level of $730 million. This would fall on the heels of a $251 million decrease from FY2004 to FY2005. The administration claims that the proposed funding level keeps them on target for providing up to $3.4 billion through 2011 for the CWSRF. The administration further claims that states were “over-funded” in previous years based on the administration’s markers, although prior year appropriations remained in the $1.4 billion range for years. Funding at any of these aforementioned levels doesn’t come close to filling the $535 billion gap in needed infrastructure funding over 20 years that EPA itself has identified. The proposed funding level drew a quick “troubled” response from Senator James Inhofe (R-Oklahoma, Chairman, Senate Environment and Public Works Committee) who claimed Congress would restore at least some of the proposed reduction. Also affecting how much states receive for the CWSRF is the rising amount of water and sewer project earmarks included in annual appropriations bills. That number soared to 873 projects totaling $488 million for the current fiscal year.
The President recommended $850 million for the Drinking Water State Revolving Fund, a $7 million or 0.8 percent increase over FY2005.
DIESEL. The President’s Budget designates $15 million for a Clean Diesel Initiative (CDI) to expand the retrofitting of diesel engines. According to EPA, the CDI will engage industry, state and local governments, public health officials and environmental organizations to support diesel engine retrofits, rebuilds and replacements, anti-idling measures and clean fuel projects. It will attempt to leverage federal funds with private sector and state and local government support. In a related program, the administration is seeking a 34 percent increase for the Clean School Bus Initiative. This initiative, funded at $7 million for FY2005 and recommended to go to $10 million, supplies grants to governmental entities for bus engine retrofit and replacement activities.
BROWNFIELDS. The President’s Budget seeks a 28 percent increase for Brownfields Cleanup. Combined with an extension of the brownfields tax credit, the administration expects to access 1,000 brownfields properties, clean up 60 properties with federal funding and leverage $1 billion in additional cleanup activity. Funding for brownfields grants and loans totaled $164 million in FY2005 and the administration recommends $210 million for FY2006.
WATER SECURITY. The administration recommends increased funding of $79 million for FY2006, $44 million of which would be directed to a new Water Sentinel Initiative (WSI). EPA reports that the WSI would be piloted in five major cities and would serve as a demonstration tool for future intergovernmental water protection efforts.
SUPERFUND. The administration is seeking a small boost, from $1.247 billion to $1.279 billion, for Superfund site cleanups. Sites remaining on the current National Priorities List are frequently claimed to be in greatest need of remediation and more costly to clean up. EPA writes that the average cleanup cost at a complex site is $50 million or more. The President’s recommendation does not include restoration of the tax base that originally provided revenue to the Superfund Trust Fund. Federal funding for Superfund sites now comes out of the general revenue fund.
NONPOINT SOURCE POLLUTION. Grants to states under Section 319 of the Clean Water Act would remain at $209 million for FY2006 under the administration’s proposed budget. Funding would be used to “expand efforts to manage nonpoint source pollution on a watershed basis through the development and implementation of watershed plans” according to EPA. The recommended funding level for FY2006 is $29 million less than funds provided in both FY2003 and FY2004.
LEAKING UNDERGROUND STORAGE TANKS. Annual funding would move from $69 million (FY2005) to $73 million (FY2006) if Congress adopts the President’s recommendation.
STATE AND LOCAL AIR GRANTS. Funded at $223.2 for FY2005, Section 103 and 105 Clean Air Act grants would rise to $223.6 for the coming year per the President’s recommendation.
