U.S. seeks to hike environmental spending

Some of the U.S.'s energy-related cabinet departments have asked Congress to boost their budgets for fiscal year 1999. Much of the increase in planned outlays is earmarked for environmental spending. The U.S. Environmental Protection Agency is planning to institute a number of new standards and programs. The U.S. Minerals Management Service will study the environmental effects of upstream activity in the Gulf of Mexico. And the Clinton administration plans to increase the Oil Spill

Feb. 23, 1998

3 min read

Some of the U.S.'s energy-related cabinet departments have asked Congress to boost their budgets for fiscal year 1999. Much of the increase in planned outlays is earmarked for environmental spending.

The U.S. Environmental Protection Agency is planning to institute a number of new standards and programs. The U.S. Minerals Management Service will study the environmental effects of upstream activity in the Gulf of Mexico. And the Clinton administration plans to increase the Oil Spill Liability Trust Fund.

EPA budget

EPA asked Congress for a record $7.8 billion, up 6% from $7.4 billion last year. EPA said the budget provides funding for key administration priorities, including curbing greenhouse gas emissions, cleaning waterways, implementing new clean air standards, expanding community "right to know" programs, and cleaning the worst toxic waste sites.

EPA asked for $116 million and 72 additional staff to work with industries and other groups to find cost-effective ways to curb emissions believed to cause global warming.

MMS spending

Meanwhile, MMS is asking for $222.5 million to manage minerals resources on the Outer Continental Shelf. This is about $14 million more than was allocated in fiscal 1998.

The agency noted that it will collect about $6 billion in mineral revenues from federal and Indian lands in 1997 (see related story, p. 37).

MMS plans to spend $5 million to "reengineer" the royalty management program by designing advanced automated systems.

"The request also includes funding to support environmental studies focusing on deepwater regions of the Gulf of Mexico," said MMS. "Industry has already invested heavily in these deepwater regions, both in technology development and in bonus bids on deepwater leases."

MMS asked for a supplemental appropriation of $6.7 million "in response to surging leasing activity in the Gulf of Mexico." Overall, the Interior Department, of which MMS is a part, asked for $8.056 billion, up $491 million from 1998 appropriations.

API protests proposals

The administration also wants to increase the Oil Spill Liability Trust Fund from $1 billion to $5 billion through a 5¢/bbl tax on crude oil and products.

API protests the move, saying, "The fund now stands in excess of $1 billion, and there is no need to pile up additional billions."

API also noted that the budget would reinstate a tax on petroleum and chemicals, which expired Dec. 31, 1995, to finance the "Superfund" for cleaning up toxic waste sites.

"No tax should be levied until the Superfund law itself is reformed, and Congress has repeatedly failed to do that," said API.

API also has complained about some fine print in the Clinton administration's fiscal 1999 budget proposal.

API said the administration would further restrict the use of foreign tax credits for oil and gas income: "That would result in destructive double taxation on U.S. oil companies' operating revenues. And it would further impede their ability to compete with foreign-based companies."