The obligation estimated for FY 1975 of nearly $4 billion from P.L. 92-500 funds is more than double the amount obligated from this source in FY 1973 or FY 1974 and nearly three times the $1.3 billion obligated in FY 1973 from funds provided by prior authorizations. Outlays are increasing even more dramatically, from a total of $684 million in FY 1973 to $1.6 billion in FY 1974 and an estimate of approximately $3 billion in FY 1975. The fiscal year 1976 and 1977 outlays, related to an allotment of an additional $9 billion, would be in the range of a total of $1 billion. This would require reductions in spending for other programs if balanced budgets are to be achieved as called for by many members of Congress and the President. The main impact of this problem would occur in the first year that all Congressional and Executive budget actions will be subject to the new Impoundment Control Act of 1974. Estimated Effects The allotment of an additional $9 billion would add to the inflationary pressure currently being exerted on the national economy. Inflation is now recognized as a crucial economic problem for this nation. In the first two quarters of 1974, for example, the implicit GNP price deflator has risen by 12.3 percent and 9.6 percent respectively. Certainly, without prudent governmental offset policies inflation would continue at this dangerous level into the foreseeable future. Thus, the fiscal and monetary policies of this administration and of the Federal Reserve System have been directed toward economic restraint. Additional fiscal stimulus would only fuel the current inflationary pressures. Moreover, in the current climate of inflationoriented expectations, this additional fiscal stimuli might serve as a signal to business and labor as well as to consumers and investors that the government will not be able to check inflation and that they should therefore base their future decisions on the assumption that prices will continue to rise rapidly. It should be emphasized that there is currently no dearth of investment in the pollution abatement sector. To the contrary, because of Federal regulatory activities, expenditures for this purpose are increasing at a substantial rate without any increase in Federal spending over existing levels. It has been estimated that U.S. nonfarm business spent $4.9 billion in 1973 for pollution abatement alone, and will spend $6.5 billion in 1974 for the same purpose, an increase of 26 percent. Federal outlays for pollution control and abatement will approach $4 billion in 1975, an increase of over 50 percent from 1974 and an average annual increase of 74 percent since 1972. While up-to-date statistics are not available for the State and local sector, some understanding of their activity can be obtained through the activity of tax-' exempt bonds for pollution control. In the first half of this year, taxexempt bond financing for pollution abatement grew 42 percent over the equivalent period last year, growing from $859 million to $1.222 million, despite soaring interest rates. Though the majority of these issues will finance business construction, a growing percentage will finance governmental construction. Collectively, these figures demonstrate a sizable and growing national investment in pollution abatement. In the judgment of the Administration, the allotment of an additional $9 billion at this time. would generate inflationary pressures in both the industries concerned and the economy as a whole. For these reasons, the President has no choice but to defer this authority. Deferral No.: D75-74 DEFERRAL Of Budget AUTHORITY REPORT PURSUANT TO SEC. 1013 OF PUBLIC LAW 93-344 Agency: Environmental Protection Agency. Bureau: Appropriation Title and Symbol: Abatement and Control-68X0108 (Water Program Operations). New budget authority (Public Law 92–500). Other budgetary resources..... Amount to be deferred part of year. Amount to be deferred for entire year. $2,000,000 2, 000, 000 The amount being deferred was provided in the AgricultureEnvironmental and Consumer Protection Appropriation Act of 1974 for the removal of in-place toxic pollutants from harbors and navigable waterways, pursuant to Sec. 115 of the Federal Water Pollution Control Act Amendments of 1972 (P.L. 92-500). EPA has not yet developed a plan to implement this program, although a contract has been let to identify locations of in-place toxic pollutants in harbors and waterways. The report is due in March, 1975. The appropriation cannot be used effectively until the report's findings are available. This reserve action has been taken under provisions of the Antideficiency Act (31 U.S.C. 665) to ensure fund availability upon completion of the report. Estimated effects It is not expected that postponement of this program for a relatively short time will have any significant detrimental effect on water quality. In fact, there may be overall water quality improvement due to the implementation of pollution controls as a result of EPA and State regulatory programs. In addition to these controls on effluent discharges, there is expected to be no new dumping of materials into port and harbor areas as a result of EPA's regulatory program on ocean dumping (established pursuant to the Marine Protection, Research and Sanctuaries Act of 1972, P.L. 92–532). Delaying the use of this appropriation will allow for the planning and design of a program which should meet legislative objectives in an effective manner and insure that the individual projects are costeffective. This deferral was anticipated in current budget estimates. Even if these funds were to be made available at this time, there would be no outlay impact in 1975. Deferral No.: D75-75 DEFERRAL OF BUDGET AUTHORITY REPORT PURSUANT TO SEC. 1013 OF PUBLIC LAW 93-344 Agency: Environmental Protection Agency. Bureau: Appropriation Title and Symbol: Abatement and Control-68X0108 (Water Planning and Standards). New budget authority (Public Law 92-500) Other budgetary resources__ Amount to be deferred part of year_-_ Amount to be deferred for entire year.. Justification $150, 000, 000 30, 000, 000 The $150,000,000 is one-year contract authority for the purposes of funding areawide waste treatment management plans. At present, EPA can identify a need for obligating only $120,000,000 of this total. EPA presently estimates that approximately 100 area wide waste treatment management agencies will be designated during FY 1975. Because of the uncertainties involved in estimating the number of agencies to be designated, it is possible that more than $120,000,000 might be needed. For this reason the remaining $30,000,000 should be kept in reserve. Therefore, since EPA presently plans to obligate only $120,000,000, it is proposed to defer the remaining $30,000,000 until January 1975, at which time the program will be reviewed and additional funds apportioned as necessary. Estimated effects The deferral of $30,000,000 will have no detrimental effects since EPA presently has not developed a plan to obligate these funds. Should additional needs be identified, funds will be made available. There is no budgetary effect as a result of this deferral. A deferral of $50 million was anticipated in the budget estimates, but an addditional $20 million was recently apportioned, leaving a balance of $30 million. Even if this authority were to be made available at this time, there would be no outlay impact in 1975. 42-275 O-74 - 11 BIOGRAPHIES Mr. WHITTEN. Mr. Train, I notice you have several people with you who are appearing before the committee for the first time. As is our custom here, we would like for the record to show their biographical sketches. [The biographical sketches follow:] JAMES L. AGEE, ASSISTANT ADMINISTRATOR, OFFICE OF WATER AND HAZARDOUS MATERIALS James L. Agee was appointed Assistant Administrator for Water and Hazardous Materials in April 1974. He has responsibility for the Offices of Water Planning and Standards, Water Program Operations, Pesticides, and Toxic Substances. From 1970 to 1974, Mr. Agee was regional administrator, region X, Environmental Protection Agency, Seattle, Wash. He had direct responsibility for EPA programs in the States of Alaska, Idaho, Oregon, and Washington. His major assignments prior to his appointment as regional administrator for EPA include: Regional director, Northwest region, Federal Water Quality Administration. U.S. Department of the Interior, Portland, Oreg., August 1968, to December 1970. Director, Pacific Northwest Water Laboratory, Corvallis, Oreg., August 1967, to August 1968. Chief, water quality standards staff, Federal Water Pollution Control Administration, U.S. Department of the Interior, Washington, D.C., September 1966, to August 1967. Mr. Agee graduated from Oregon State University in 1951 with a bachelor of science degree in sanitary engineering. He was employed by the Oregon State Board of Health from 1951 to 1960, during which time he completed his master of science degree at Harvard University. From 1960 to 1966. Mr. Agee held a senior field position in Portland, Oreg., with FWQA's predecessor agencies, the Federal Water Pollution Control Administration and the U.S. Public Health Service. As director of the Pacific Northwest Water Laboratory, he was responsible for the development of the national research programs for thermal pollution, coastal pollution, eutrophication, and industrial waste treatment for pulp and paper and food processing. For his contributions in developing these national research efforts, Mr. Agee received a citation for distinguished service, the Department of Interior's highest award. As chief of the water quality standards staff. Mr. Agee was responsible for organizing and directing the nationwide Federal program on water quality standards under the Water Quality Act passed by the U.S. Congress in 1965. For his outstanding contributions to the water quality standards program, Mr. Agee received the Department of Interior's citation for meritorious service. Mr. Agee is a registered professional engineer in Oregon and a member of the Water Pollution Control Federation and the American Water Works Association. JOHN T. RHETT, DEPUTY ASSISTANT ADMINISTRATOR FOR WATER PROGRAM John T. Rhett joined EPA on March 1, 1973, as the Deputy Assistant Administrator for Water Program Operations following his retirement as a colonel in the U.S. Army Corps of Engineers. He is responsible for the general direction and supervision of all operations and activities of the Office of Water Program Operations, including oil and special materials control, municipal construction, municipal permits and operations, water supply. A commissioned officer with the Corps of Engineers since 1945, Colonel Rhett served at posts both here and abroad. His assignments included 2 years with SHAPE. Chief of the Engineering Division of the U.S. Army Construction Agency in Vietnam and district engineer of the Louisville Engineering District. His most recent post was resident member, Board of Engineers for Rivers and Harbors. |