U.S. AGENCIES OUTLINE BUDGET PLANS FOR FISCAL 1996

The U.S. Department of Energy proposes to operate on a $17.8 billion budget in fiscal 1996 but plans to cut spending $14.1 billion during the next 5 years.

DOE's proposal is part of the Clinton administration's $1.61 trillion budget plan, up from $1.52 trillion this fiscal year. The Republican controlled congress is expected to take a big bite out of the proposal that covers fiscal 1996 starting Oct. 1.

Energy Sec. Hazel O'Leary said DOE is able to make the largest federal agency contribution to deficit reduction "because in the last 2 years we have shown we can cut waste, bring down costs, and work smarter on our critical national security, science, environmental, and energy missions."

The proposed DOE budget is up $300 million from fiscal 1995. Two thirds of the increase is for workforce reductions, on which O'Leary explained "you sometimes have to spend money to save money."

She said during the next 5 years DOE anticipates reducing spending an estimated $14.1 billion. About 21% of its employees will be discharged.

DOE plans to propose legislation this year to privatize, sell, or lease Elk Hills and other naval petroleum reserves in fiscal 1997, raising $1.6 billion (OGJ, Dec. 26,1994, p. 27).

Proposed spending for oil and gas research was increased to $198 million last fiscal year from $114.9 million for fiscal 1996.

Spending for the Strategic Petroleum Reserve is to be increased to $312.7 million from $243.7 million, all for maintenance. DOE proposed offsetting revenues of $287 million-$187 million from a fund to buy oil and $100 million from selling oil at the Weeks Island storage site, which will be closed.

OTHER AGENCIES

At the U.S. Interior Department, Sec. Bruce Babbitt proposed a $9.77 billion budget for discretionary programs, down $9.9 million from the current fiscal year.

Babbitt strongly supported the retention of Interior's National Biological Service, Bureau of Mines, and U.S. Geological Survey. Republicans in Congress have proposed killing those agencies (OGJ, Jan. 2, p. 25).

Babbitt called eliminating the trio the equivalent of book burning.

He added, "Good science is essential to good land management. Without a solid basis in fact, management and regulatory decisions will be based on politics and ideology, which is the last thing we want."

Interior said it will comply with the administration's program to "reinvent government" by cutting 59% of supervisors, 49% of headquarters staff, and 53% of personnel specialists during 5 years. By 1999, total Interior employment is to be reduced 9%.

The Minerals Management Service will seek $763.8 million for fiscal 1996, up $18.5 million. Its budget priorities are on improved royalty management and oil spill remediation research.

MMS estimated offshore oil and gas royalty revenues will drop to $2.4 billion from $2.58 billion due to reduced production and prices. Onshore royalties will remain steady.

The Environmental Protection Agency proposed a $7.4 billion budget, up $138 million.

Carol Browner, EPA administrator, said the budget reflects the agency's shift from a pollutant-by-pollutant approach to a comprehensive approach "to achieve results that are cleaner for the environment, cheaper for business and taxpayers, and smarter for America's future."

EPA now targets the highest risk environmental problems, redirecting resources away from lower risks. Other goals are to strengthen cooperation with states, science efforts, and enforcement.

At the Transportation Department, 10 bureaus are being consolidated into three. The budget plan includes $500,000 for a Research and Special Programs Administration program to map interstate pipelines in environmentally sensitive areas.

The Office of Pipeline Safety is budgeted for $42.4 million, up $5.1 million. It will launch a program for nondestructive testing of pipelines and a national campaign to educate the public about one-call phone numbers that can be used to find buried pipelines.