[House Hearing, 114 Congress] [From the U.S. Government Publishing Office] INTERIOR, ENVIRONMENT, AND RELATED AGENCIES APPROPRIATIONS FOR 2016 __________________________________________________________ __________________________________________________________ HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTEENTH CONGRESS FIRST SESSION SUBCOMMITTEE ON INTERIOR, ENVIRONMENT, AND RELATED AGENCIES KEN CALVERT, California, Chairman MICHAEL K. SIMPSON, Idaho BETTY MCCOLLUM, Minnesota TOM COLE, Oklahoma CHELLIE PINGREE, Maine DAVID P. JOYCE, Ohio DEREK KILMER, Washington CHRIS STEWART, Utah STEVE ISRAEL, New York MARK E. AMODEI, Nevada EVAN H. JENKINS, West Virginia NOTE: Under Committee Rules, Mr. Rogers, as Chairman of the Full Committee, and Mrs. Lowey, as Ranking Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees. DAVE LESSTRANG, DARREN BENJAMIN, JASON GRAY, BETSY BINA, and KRISTIN RICHMOND, Staff Assistants ________ PART 6 Page Indian Health Service Budget Oversight Hearing ...... 1 Department of the Interior Budget Oversight Hearing.. 63 Environmental Protection Agency Budget Oversight Hearing ........................................... 205 Bureau of Indian Affairs/Bureau of Indian Education Budget Oversight Hearing .......................... 295 ________ Printed for the use of the Committee on Appropriations ________ U.S. GOVERNMENT PUBLISHING OFFICE 94-523 WASHINGTON : 2015 COMMITTEE ON APPROPRIATIONS HAROLD ROGERS, Kentucky, Chairman RODNEY P. FRELINGHUYSEN, New Jersey NITA M. LOWEY, New York ROBERT B. ADERHOLT, Alabama MARCY KAPTUR, Ohio KAY GRANGER, Texas PETER J. VISCLOSKY, Indiana MICHAEL K. SIMPSON, Idaho JOSE E. SERRANO, New York JOHN ABNEY CULBERSON, Texas ROSA L. DELAURO, Connecticut ANDER CRENSHAW, Florida DAVID E. PRICE, North Carolina JOHN R. CARTER, Texas LUCILLE ROYBAL-ALLARD, California KEN CALVERT, California SAM FARR, California TOM COLE, Oklahoma CHAKA FATTAH, Pennsylvania MARIO DIAZ-BALART, Florida SANFORD D. BISHOP, JR., Georgia CHARLES W. DENT, Pennsylvania BARBARA LEE, California TOM GRAVES, Georgia MICHAEL M. HONDA, California KEVIN YODER, Kansas BETTY MCCOLLUM, Minnesota STEVE WOMACK, Arkansas STEVE ISRAEL, New York JEFF FORTENBERRY, Nebraska TIM RYAN, Ohio THOMAS J. ROONEY, Florida C.A. DUTCH RUPPERSBERGER, Maryland CHARLES J. FLEISCHMANN, Tennessee DEBBIE WASSERMAN SCHULTZ, Florida JAIME HERRERA BEUTLER, Washington HENRY CUELLAR, Texas DAVID P. JOYCE, Ohio CHELLIE PINGREE, Maine DAVID G. VALADAO, California MIKE QUIGLEY, Illinois ANDY HARRIS, Maryland DEREK KILMER, Washington MARTHA ROBY, Alabama MARK E. AMODEI, Nevada CHRIS STEWART, Utah E. SCOTT RIGELL, Virginia DAVID W. JOLLY, Florida DAVID YOUNG, Iowa EVAN H. JENKINS, West Virginia STEVEN M. PALAZZO, Mississippi WILLIAM E. SMITH, Clerk and Staff Director (II) DEPARTMENT OF THE INTERIOR, ENVIRONMENT, AND RELATED AGENCIES APPROPRIATIONS FOR 2016 __________________________________________________________________ __________________________________________________________________ Wednesday, February 11, 2015. INDIAN HEALTH SERVICE WITNESSES DR. YVETTE ROUBIDEAUX, SENIOR ADVISOR TO THE SECRETARY FOR AMERICAN INDIANS AND ALASKA NATIVES ROBERT McSWAIN, ACTING DIRECTOR, DEPARTMENT OF HEALTH AND HUMAN SERVICES, INDIAN HEALTH SERVICE Opening Remarks of Chairman Calvert Mr. Calvert. Good morning. The Committee will come to order. Good morning. Welcome to the oversight hearing on fiscal year 2016 budget for Indian Health Service. Since this is the first hearing of this Subcommittee in the 114th Congress, let me take a moment to congratulate the new Ranking Minority Member of this Subcommittee, Representative Betty McCollum of Minnesota. Betty, you have been a respected leader on this Subcommittee for some time, and I am very much looking forward to continuing to work with you in this Congress, particularly on the many nonpartisan issues under this Subcommittee's jurisdiction such as Indian Health. Let me also take a moment to congratulate and welcome the newest members of our Subcommittee--not all of them are here-- Representative Mark Amodei of Nevada, I guess we will forget about the sage grouse since he is not here today. Representative Steve Israel of New York, Representative Evan Jenkins of West Virginia, Representative Derek Kilmer of Washington. As many of your know, Mr. Kilmer's predecessor, Norm Dicks, was the cornerstone of this Subcommittee for more than 30 years and his leadership can still be felt today. For example, in fiscal year 2009, Chairman Dicks placed a renewed emphasis on Indian health in this Subcommittee that has continued through the three successive chairmen. In fact, since 2010, the Indian Health Service budget as a percentage of the Subcommittee total budget has grown from 13 percent to over 15 percent today. The President's 2016 proposal would push this ratio to 16 percent by increasing the Indian Health Service's discretionary budget by $461 million, of which $147 million is to keep pace with medical inflation, population growth, salary and benefit costs in order to maintain current levels of service. Fifty- five million is to keep pace with the rising contract support costs, $18 million is to keep pace with the additional staffing costs from new expanded facilities, $35 million is to reduce a critical maintenance backlog that currently stands at $460 million, $100 million is to keep up efforts to complete the $2 billion Health Care Facilities Priority Construction List, and another $35 million is to address the $1.9 billion sanitation facilities backlog. Two years ago, then-Chairman Simpson convened an oversight hearing to determine whether funding increases in recent years for the Indian Health Service were making a difference. The answer was a resounding yes, but that more needed to be done. Clearly, the 2016 budget proposes to do just that. However, like the majority of my colleagues in Congress, I am disappointed that the increases proposed in fiscal year 2016 for Indian Health Service and many other agencies are not offset by responsible cuts to lower-priority spending elsewhere on both the discretionary and mandatory sides of the budget. For the majority of us in Congress, the goal here is to reduce the national debt, not add to it. Nevertheless, there is no doubt that most of us, if not all of us on this subcommittee, agree that funding for Indian Health Service remains a priority in this bill, and we will continue to work with our Subcommittee's allocation to balance funding for Indian Health with other programs in this bill in order to pass an appropriations bill that fairly reflects the priorities of the Congress. We are pleased to be joined today by Dr. Yvette Roubideaux, now the Senior Advisor to the Secretary of American Indians and Alaska Natives, who had previously been at the helm of Indian Health Service for several years and now patiently awaits re- nomination by the President and confirmation by the Senate. We are also joined today by Mr. Robert McSwain, now Acting Director of the IHS, and formerly the Deputy Director. Mr. McSwain also served as Director of the IHS from 2007 to 2009. We thank you both for being here this morning and look forward to working with you today and the coming months to review this budget request and to determine which of your priorities can be met in light of the Subcommittee's more limited allocation. Before we turn to Dr. Roubideaux, let me first ask our distinguished Ranking Member, Ms. McCollum, for any opening remarks she may wish to make. Opening Remarks of Ms. McCollum Ms. McCollum. Thank you, Mr. Chair. I am looking forward to serving in this capacity. Our colleagues, I want to make sure that the colleague who made this possible for me by his retirement, Mr. Moran, remains in retirement, and one of the things he said is you have to keep the quote up. So gentlemen, I will not do this all the time but here is the quote for the day. It is short and sweet. Mr. Simpson. I expect one at every hearing. Ms. McCollum. I do not think you are going to get it every one, and we will see how you like this one. ``It is an old error of man to forget to put quotation marks when he borrows from a woman's brain.'' That is from Anna Spencer, who was an American educator, feminist, Unitarian minister--oh, you got it. It is sinking in. We are a band of brothers and sisters on this Committee, so thank you, Mr. Chairman, for your kind words, and I look forward to working with you and all the members of this Committee because this bill does fund things that are so vital to our communities, our Nation and to its people. It is our moral and legal responsibility to provide for the health care for Native Americans, and this is something that we all take very seriously. So I would really like to join Chairman Calvert in welcoming Dr. Roubideaux and Mr. McSwain to the Subcommittee this morning. As we kick off our hearings for fiscal year 2016 budget request, I would also like to extend a warm welcome to the new members who are here and the returning members. I am very glad to have Ms. Pingree here to fill in when I cannot be here because of other duty assignments as part of this Congress. So as you point out, Mr. Chairman, it is the history of this subcommittee to seek an approach on issues in a bipartisan fashion. Indian Health is an area where we have been tremendously successful and I am confident we will work together in the years to come as we face the challenges in Indian Country. These truly are our greatest successes. Our support for federal treaty obligations in the past has allowed us to make considerable progress in addressing health, social, and educational needs throughout Indian Country. But we know as a Committee and as an Administration and as Americans, there is much more work to be done. The fiscal year 2016 Indian Health Service budget request includes $5.1 billion in discretionary funding. That is an increase of $460.6 million over last year's levels. Within the proposed increase, $146.3 million would pay for additional funds to simply maintain the current levels of medical care. The remaining $313.3 million would allow us to expand services and pay for some of the health care needs that are currently unmet. This is an ambitious proposal, and I am encouraged by the support of the Administration and my colleagues on this Committee for addressing the needs within Indian Country. This budget request contains $55 million for contract support costs, an area of great concern for tribal leaders, for me and many of the people on this Committee. My partner on the Native American Caucus, Mr. Cole, has been a great champion on this. While I am pleased that the Administration is no longer proposing caps to contract support, I am concerned that unless we also provide mandatory funding for direct services, there will be an inequity among tribes within their health care needs, so I hope to discuss this issue with you more later. I first want to focus on the disparities in mental health outcomes and available care in Native American communities, and this is something that we heard firsthand again when we were in Navajo and Hopi country. Native Americans experience post- traumatic stress disorder at more than twice the rate of the general population. Native Americans are more likely to serve as veterans. They experience domestic violence at a higher rate than the general population, and they carry the historical trauma of the Native American experience in this country. Access to mental health and chemical dependency services remains a critical issue I intend to focus on with this Committee. A study of the Substance Abuse and Mental Health Services Administration indicates 11.5 percent of Native Americans have unmet needs for mental health treatment, and suicide is the second leading cause of death for Native American youth ages 10 to 34. So I was pleased to see that the budget included $25 million for the Tribal Behavioral Health Initiative for Native Youth, and I am interested in hearing more about that. I was also happy to see that the request made strategic investments in information technology implementation, to fully integrate electronic medical records. There is a lot of work IHS needs to do with that, working with insurance companies and third-party reimbursements. I'll want to hear more on the Defense Committee, on which many of us sit, about how you are integrating with the Department of Defense and Veterans Affairs with your mental health records. So Mr. Chairman, I want to thank you for holding this hearing. I look forward to working with you and all the members on this Committee, and as we build healthy tribal nations and Native communities, we build a healthier America. Thank you. Mr. Calvert. Thank you, and Doctor, you are recognized for your opening statement. Opening Remarks of Dr. Roubideaux Dr. Roubideaux. Great. Thank you so much, Chairman Calvert and Ranking Member McCollum and members of the Committee, I am Dr. Yvette Roubideaux, Senior Advisor to the Secretary for American Indians and Alaska Natives, and with me today is Mr. Robert McSwain, Acting Director of the Indian Health Service, and we are pleased to provide testimony on the President's proposed fiscal year 2016 budget for the Indian Health Service. Since 2008, IHS appropriations have increased by 39 percent, thanks in part due to the efforts of your Committee, and these investments are making substantial impact on the quantity and the quality of health care we are able to provide to American Indians and Alaska Natives. This budget proposes to continue that progress by increasing the budget by $461 million to a level of $5.1 billion, which if appropriated would increase the IHS budget to 53 percent since 2008. This budget continues the Administration's commitment to improving health care for American Indians and Alaska Natives, and I know you share that commitment as well. The fiscal year 2016 President's budget proposes a number of increases, first, a $147 million increase to help address medical inflation, population growth and pay costs to help maintain current services. It also addresses a top tribal priority by proposing an overall $70 million increase to the Purchase and Referred Care program, formerly known as Contract Health Services--so thank you for helping us change the name-- which will help us fund more referrals for patients and result in more programs funding more than Priority I or life-or-limb services. My testimony mentioned that we have gone from four programs funding more than life-or-limb to now 41 of 69 programs funding more than life-or-limb referrals. The recent increases in PRC has also enabled the Catastrophic Health Emergency Fund, or CHEF fund, to reimburse high-cost cases submitted through mid-September rather than only through June, as in the past. The budget proposes an additional $25 million for the IHS to expand its successful Methamphetamine and Suicide Prevention Initiative to increase the number of child and adolescent behavioral health professionals who will provide direct services and implement youth-based programming as a part of the President's Generation Indigenous Initiative. The budget also includes other increases focusing on improving access to affordable health care with improving third-party collections and helping IHS continue to achieve Meaningful Use of its Electronic Health record. The budget proposes to reauthorize the successful Special Diabetes Program for Indians, or SDPI, for another 3 years at the current $150 million funding level to continue progress because it has demonstrated that we can prevent and treat diabetes in the American Indian and Alaska Native population. The budget also includes significant investments in IHS facilities including increases for maintenance and improvement, sanitation facility construction, and health care facility construction, which will help us make significant progress on our priority list. The budget also proposes $18 million to fund additional staffing for all three of the newly constructed facilities that are planned to be opened prior to or in fiscal year 2016. A top priority for the Indian Health Service is to strengthen our partnership with tribes. I truly believe that the only way that we are going to improve the health of our communities is to work in partnership with them, and this includes honoring and supporting tribal self-determination and tribal self-governance. That is why I am pleased to inform you that the budget includes a two-part, long term approach to funding contract support costs, which is the result of our tribal consultation that you requested last year on a long-term solution for contract support cost appropriations. The first part of the budget is full funding of the estimated CSC need in fiscal year 2016, for which the budget requests an increase of $55 million. The second part of the approach is a proposal to reclassify CSC as mandatory, rather than discretionary, starting in fiscal year 2017, after we do tribal consultation in fiscal year 2016 and in work with you in Congress. The proposal is significant because it is the top recommendation from the tribes to fully fund contract support costs separately from the services budget, and that was a top recommendation that all tribes agreed that they want full funding of contract support costs but not at the expense of the rest of the budget, and so that is why this accomplishes that separation. IHS has also worked in partnership with tribes to improve estimates of contract support cost needs and the agency's business practices related to CSC funding. The proposal to reclassify CSC as a mandatory appropriation helps us continue progress on this issue, and we look forward to working with you on this proposed approach. IHS has also made progress on past contract support cost claims with offers extended on 1,219 claims and settlements on 883 claims for a total value of $679 million. So in summary, this fiscal year 2016 President's budget helps continue progress on improving quality and access to health care, changing and improving the Indian Health Service, and strengthens our partnership with tribes. I appreciate all your efforts to helping ensure a healthier future for American Indians and Alaska Natives. Thank you, and we are happy to answer questions you may have. [The statement of Yvette Roubideaux follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Calvert. Thank you, Doctor, we appreciate your testimony. CONTRACT SUPPORT COSTS You mentioned in your testimony contract support costs, and the budget proposes to fully fund contract support costs in this bill for 2016 and move the funding to the mandatory side of the ledger for 2017. How does moving the contract support costs to mandatory funding help solve the Committee's concerns about, one, the difficulty of accurately estimating support costs before the start of each fiscal year, and B, inconsistencies in contract support cost policies between the Indian Health Service and the Bureau of Indian Affairs? Dr. Roubideaux. Well, we really appreciate your work with us on contract support costs and understanding how the costs can be variable over time, and we actually have worked with our IHS tribal CSC work group. Actually tribal and federal members have been working together over the past year. They have developed a more accurate way to calculate contract support costs. They call it the annual CSC calculation tool. It is a tool that helps make the estimates more reliable, more accurate, and verifiable based on actual data that the tribes give us. And so moving the contract support costs to mandatory is a part of sort of the process to make contract support costs a better business operation within the Indian Health Service, and by combining with the Bureau of Indian Affairs, it helps us work on, you know, finding other ways to streamline the operations, finding other ways to work together. The challenge we have is that the Bureau of Indian Affairs funding is a little different than the Indian Health Service funding. The magnitude of programs available for contracting and the magnitude of the increases that tribes can assume is much different than the Bureau of Indian Affairs. Fortunately, there are members of our CSC work group on the BIA CSC work group, and they are already talking about ways that we can make that there. The other thing that helps us in mandatory is flexibility to move--we would like to see it be no-year funds so that if we do not spend all our funds in one year, we could move it to the next year. Mr. Calvert. Well, I understand your desire to get over to the mandatory side of the budget. It seems like everybody is trying to get to the mandatory side of the budget, and that is probably why it is that about 63 percent of total outlays right now is mandatory spending. So it is a challenge, but I understand, where you are coming from. We have shortchanged Indian health for a long time and this is a way to help fix that problem, but we will certainly take a serious look at it. Your testimony states that the top tribal recommendation is to fully fund contract support costs separately from the services budget. Short of shifting the funding to mandatory spending, which is your desire, and which is outside of our jurisdiction, of course. We will have to have others work on that. Would it make sense to move contract support costs to a standalone account within discretionary spending so that any future shortfalls are not paid for by direct services? Dr. Roubideaux. Well, certainly the tribes have agreed that they want full funding but not at the expense of the rest of the budget, and a part of their reasoning for the mandatory proposal was to separate them. We would be happy to talk with you about that proposal and ideas that you have because I think if there is any way we can get towards the tribal recommendation and work towards that, that would be great. We do worry, however, on the discretionary side, even if it is separate, there is the issue of the less flexibility if it is an annual appropriation, and so that is--if the funds all have to be spent within one year, that is challenging with contract support costs because it is a variable cost over time. That is how it is defined in the law, and the tribes said they do not want to change the law around it but they do want to look at ways that we can make sure that we are fully funding and also estimating better. Mr. Calvert. Well, we will work together on that and we will try to figure out how we are going to do this, with that, Betty, questions? Ms. McCollum. Thank you, Mr. Chairman. Just to follow up on that a little bit, you use the term ``better business model,'' and I understand that the tribes have made an investment. It is a public nation-to-nation partnership, and they need to know that they can pay their bills and keep their hospitals open and all of that. But at the same time, we do know that there are many people in Indian Country on the other side who do not have the contract support, who do not have the government-to-government relationship on a business-model level, and they go without services when the dollars are not there. So we need to make sure--and I know the Chairman had a good idea about the standalone account--that we do not with the best of intentions wind up creating even more inequities in the Indian Health Service. MENTAL HEALTH I would like to focus on chemical dependency and mental health. As I stated earlier, I am very excited about the proposed increase--a slight increase but it is an increase nonetheless. But one of the things that we have been hearing in public testimony, and we hear firsthand when we are out on reservations or when I am in urban areas, is ``how do we make sure that there are not barriers to receiving these health care services?'' So what are you doing to make sure that treatment, both for chemical and mental health--and quite often they go hand in hand, as you know, Doctor--what are you doing to reduce barriers on that? Because just putting the money but not reducing the barriers does not provide the service. Dr. Roubideaux. Well, I agree with you that this is a significant challenge to deal with, you know, chemical dependency and mental health issues, and you are right, they often do coexist. We have been working in the Indian Health Service to implement our Improving Patient Care Initiative, which is a patient-centered medical home, and just this year we have started working on integrating primary care with behavioral health so that there is more access points to services so that they do not just have to go to the mental health trailer and get services, they can actually be seen within the clinic with our whole team to try to help with that. This particular initiative, the Tribal Behavioral Health Initiative, is a part of the President's Generation Indigenous Initiative. When he visited Standing Rock, the youth that he spoke with told him of all kinds of barriers that they face and challenges that they face, and many of them were substance abuse, alcoholism, mental health issues, suicide, those kinds of things. And so there is a whole Administration effort under this initiative to try to help remove barriers to success for Native youth, and our piece as the clinical provider of services, is a focus on trying to get more behavioral health providers in those communities working at points of access where youth are like in the schools or in youth programs or in the clinic, and we know tribes have been saying they want more behavioral health services, we know that we need more providers, and so this funding would help us get more trained clinical providers that can address the problems of youth, and we felt like there is other pieces of Generation Indigenous that there are improvements in the schools and other sorts of things, and SAMHSA is working on their behavioral health grant program to contribute to this for more community-based things. IHS as the provider of health care is providing providers. Ms. McCollum. As you know, we are going to want to possibly see outcomes on this, and $25 million is significant, but in the big scheme of things across all of Indian Country, it is not much. Especially with the depth and breadth that you cover from patient-centered care, home-centered care versus going out in the community and meeting the youth where they are. So I would be very interested as this moves forward for you to keep the Committee involved in what these different programs are so that when we are out in the community, we can ask if these dollars are starting to reach them. Thank you, Mr. Chair. Mr. Calvert. Thank you. Mr. Simpson. Mr. Simpson. Thank you, Mr. Chairman, and welcome, Dr. Roubideaux. It is good to see you again. SEQUESTRATION As you are probably aware or probably should be if you are reading anything, we are probably not going to have as much money to spend as the President's budget spends, and that is going to make things tighter and more difficult for us to put together. As you know, the last time we hit sequestration, we did not exempt Indian Health Services as we did Medicare and some of the other programs, veterans' health care and so forth. It was an oversight error on our part, quite frankly. Sequestration has raised its head now that the Ryan-Murray budget has expired and we do not know what the Budget Committee is going to put forward. Have you looked at the impacts of sequestration on Indian Health Services if we don't do anything about sequestration? Dr. Roubideaux. Well, it would seriously impair our ability to carry our programs and mission, not just in the IHS federally funded programs but in the tribal programs and the urban programs. For example, if there was a 2 percent decrease, that would probably be around $83 million. I will get you the exact number of that. Those would be cuts across the board that would impact services, and when we are dealing with the lowest funded health system per capita expenditures, every dollar counts, and so even small decreases do cause some of our programs to have to lay off staff or have to reduce services or those sorts of things. But we hear the tribes always are telling us that they do not like sequestration and that they are hopeful that Congress could exempt not just Indian Health Service but all programs for tribes, and so that is what we hear from them. But there is no doubt it would have serious impact. Mr. Simpson. Well, I am not sure you would find anybody that really likes sequestration but somehow we find ourselves here, which is kind of bizarre. RECRUITING AND RETENTION One of the challenges we have been facing for years is the lack of health care professionals in Indian Health Service. We had like a 1,500-person backlog in health care professionals. We directed IHS in report language to look at the credentialing process. Can you provide us an update regarding the pilot program on the credentialing process the Committee discussed with you in 2015 and how it could impact IHS's need for additional health care providers? Dr. Roubideaux. Yes. Making sure we have qualified professionals is extremely important. The tribes want us to have the highest-quality providers possible. So we appreciate your interest in improving our credentialing. I think in the past IHS had sort of different ways of doing it in all of the different areas. I have charged a new hospital consortium to meet and to look at how we can better maintain our accreditation standards, and a part of accreditation is credentialing, and so right now they are looking at whether a consistent system among the areas versus some tailoring of that would work, but we have made requirements to our sites to make sure all of our providers are credentialed and privileged before they actually practice. And it is just a matter of finding a good system for that. We have talked with the VA a little bit. We are looking at other systems, and that is--we are actively working on that right now. Mr. Simpson. Well, I appreciate that. As we found out, it is not only credentialing; there are a lot of other factors that go into being able to get health care professionals to go on to Indian reservations, sometimes remote Indian reservations, housing and other types of things. Before I quit, Mr. Chairman, I would feel like I had not done my job if I did not ask a dental question. HEALTH IT Could you give us the status of your work to complete electronic dental records and making this priority would help IHS gather data on early childhood caries, which will lead to cost savings in the long run? Dr. Roubideaux. Well, we are very committed to implementing the electronic dental record in all 230 sites within the system, and the update is that we now have it at 169 sites, so we have made a lot of progress so there is 61 to go, and we have renewed our contract to be able to work with sites and give them technical assistance and help them with the capacity to be able to it. But you are absolutely right. The electronic dental record with its clinical and practice software really will help improve the quality of care, and I appreciate your support for that. Mr. Simpson. Thank you. Thanks, Mr. Chairman. Mr. Calvert. Thank you. Ms. Pingree, you are recognized. Ms. Pingree. Thank you very much. I want to follow up a little on that. I know Maine is one of the sites with the Aroostook Band of Micmacs that has a new dental clinic, a three-chair clinic, and I was curious about the similar kind of thing, not necessary the electronic records, but have you already been able to measure some progress with dental outcomes, preventative care with children and how we are doing with that? Dr. Roubideaux. Well, we have an Early Childhood Caries Initiative that we have been implementing over the past 5 years. We just published a report of the baseline statistics back in 2010, and once we finish this fifth year we will be able to go back out and survey and see if we have been able to make a difference with an increased emphasis of, you know, getting fluoride and getting the care that the youth need for their dental issues and caries. And so we are very anxious to see what that data is, but it is going to take us a while to gather it and then analyze, but there is no doubt there is a huge problem with childhood dental caries, and we definitely have been working on activities over the last few years to try to improve that. Ms. Pingree. To follow up quickly, how is the funding generally on expanding dental care and, the impact of sequester and the other budget cuts on that? Is it grossly underfunded, close to being adequate? Dr. Roubideaux. Well, I think there is definitely significant need in that area as well, especially since we he the data to see that there are so many caries that need to be addressed, and we are definitely using the funds that we have as much as possible to provide the services that we have but there is definitely a need for more. Ms. Pingree. Thanks. Mr. Calvert. Mr. Cole. Mr. Cole. Thank you, Mr. Chairman. It is good to see you again, Dr. Roubideaux, and it is always wonderful to have you here, and I am going to make a couple of comments quickly. PROFESSIONAL LEADERSHIP I think a lot of the progress that has been made is because we have continuity in your position, and it has meant a lot not to have the turnover, to have consistent, high-quality, ethical leadership, and I wish the Senate would understand the importance of that for the Administration and the program. You have done a wonderful job. I think the fact we have had these increases is a reflection of this Committee's bipartisan confidence in you, quite frankly, and commitment, as my good friend, Ms. McCollum, said to the task at hand. On the sequestration, just for informational purposes, there was an assurance given by Chairman Ryan that this would not happen again, and I still sit on the Budget Committee. My two friends have been liberated. But we will make a commitment to you that we are going to make sure that Indian health care is held exempt if for some reason we fell into sequestration again, which I know all of us would like to avoid. A couple of things, I have one specific request and a couple questions. Several years ago, you made for this Committee a chart that literally listed how many dollars Native Americans have on health care, and this is how many dollars Medicare, federal prisoners, and it showed, of course, what we already know. It was a very helpful tool, frankly, in both persuading our Committee, and people beyond our Committee, that we have fallen behind. While we have had four good years, I suspect that chart would still look discouragingly similar, so I ask if you could do something like that for us again. It is an extraordinarily helpful tool to have. JOINT VENTURE I would like you to focus--give us an update on where we are in the Joint Venture program. Again, this has been a program we have a lot of progress in, and it has been a program we have been able to leverage a lot of money, so if you could, give us a quick update on what you are planning in that particular program going forward. Dr. Roubideaux. Well, thank you, and we will get you an updated chart on the per capita comparison of IHS expenditures per person versus other federal programs, and it is--it does show the need and does show the disparity. The following ``2014 IHS Expenditures Per Capita'' graphic was submitted to the Subommittee for inclusion in the record: [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Dr. Roubideaux. With regard to the Joint Venture Construction program, I appreciate your efforts and advocacy on that. Tribes have been wanting us to open up a new round of that where the tribe--because our health care facilities construction priority list still has about $2 billion to go to get through that, tribes have graciously come forward and said we would be willing to fund the construction if IHS could request the staffing. And so as you know, many Oklahoma tribes have been very successful at that. We did open up a new round of Joint Venture Construction program. We had 37 pre-applicants. We narrowed it down to 13 final applicants. We just selected seven that will move forward sometime in the next few years, and we selected three to move forward this year, and I think you know that the Cherokee and Choctaw are among those three, so you get 66 percent of the ones who are moving forward this year from Oklahoma. Mr. Cole. You did not need to point that out. Dr. Roubideaux. But the tribes love this program and, you know, we are mindful of the difficult situation you are all in with the budget context and so we do not--even though the tribes want us to approve more of these programs, we are mindful of the fact that it is challenging to get any increases through, and so we are trying to approve and to move forward at a rate that is consistent with how we have been doing it in the past, and hopefully we can time the Congressional appropriations to the opening of these facilities because we do not want to get ahead of ourselves and have facilities built but no staffing. So we would love to work closely with you on that timing and to see if there is any way to move forward. Mr. Cole. We have had that problem in other facilities. My good friend, Mr. Simpson here, is focused on law enforcement in such cases. For example, we may have constructed facilities but not provided adequate staffing. Thank you for being concerned with that. And thank you for this program. It is one this Committee needs to realize has brought literally millions of extra dollars into the Indian health care system by tribes stepping up and helping out. Most tribes that have the ability to do so are interested in doing, you know, Indian health care plus. They want to put additional resources, and this has been a great way to do that for a number of them. SELF-GOVERNANCE Last question, you mentioned in your opening remarks about self-governance. While this is always a tribal choice as to whether they manage their health care, and I respect that, I am very pleased that you are emphasizing this. Honestly, nobody looks after your own people like your own people, and nobody can be held accountable more easily than your own tribal legislature, or your own folks, because they are right there and you have immediate access to them. So can you tell us a little bit about what specifically you are doing to both strengthen tribal capacity in this area, and to encourage more and more tribes to do this? I would like reassurance that it is not an effort to try to offload costs onto them. I know there is a lot of skepticism and concern about that, as there should be in Indian Country, but that is not the intent of this Committee. It is to try and empower, and I am confident that is your intent as well. Dr. Roubideaux. Absolutely. We support the tribes' decision to choose what they want, and we have a responsibility if they want to stay with IHS and have us manage their programs, and we have the responsibility to help them as they move to managing their own programs, and there is no doubt that with some of the activities that we have had in Indian Health Service over the past few years of trying to work more closely with both sets of tribes, trying to consult more, trying to provide opportunities. We have Tribal Management grant programs that tribes can apply for help if they are thinking about contracting. We do have self-governance resources for them as well, and certainly with contract support costs, the Committee has really also honored tribal self-governance by fully funding contract support costs. That decision last year was really--the tribes really loved that, and we did too because it solves that issue of being able to fund. CONTRACT SUPPORT But as you all know, a long-term solution is needed to prevent the adverse potential impact to the rest of the budget. I think that is why we are proposing CSC as mandatory and really want talk with you about how we might be able to do that so it benefits all tribes because most importantly, I have heard from all tribes that want self-governance, that want direct service. They want full contract support costs to support self-governance but they do not want an impact on the direct service tribes or the services, and so I am anxious to have those conversations with you. Mr. Cole. Well, I am anxious to have them as well. As a rule, I think this Committee is not usually in favor of making things that are dry mandatory. We have had too much of that, as Mr. Chairman said. On the other hand, this is a question of a level playing field. We have done this for every other group in this particular area, and not doing it for Native Americans I think raises some serious equity issues, so thank you for bringing it to our attention. I look forward to working with you on it. I yield back, Mr. Chairman. Ms. McCollum. Mr. Chair, if I could, when you provide information on your pipeline of projects that are out there, if you could break those out for those who are either contract support, those looking at moving that way and those who are discretionary. I really appreciated the comments and the discussion from both of you, and it seems that you have the ability. There are many tribes that are very small and very, very isolated, and so they do not have the wherewithal to even look at being able to do the contract support. So when you bring that forward to the Committee, if you could break it down into those three categories, I would appreciate it. Mr. Cole. Will my friend yield for just a quick comment, follow-up? Ms. McCollum. Absolutely. Mr. Cole. On this issue, a number of tribes, my own amongst them, actually run the health care system for very small tribes, and we recognize we have both, and those kind of partnerships are really terrific as well, and again, obviously IHS is part of it, but sometimes there are efforts where literally tribes can cooperate to the benefit of both. Ms. McCollum. Absolutely. Mr. Cole. Yield back, Mr. Chairman. Mr. Calvert. And I think Mr. Cole makes a good point, that Indian health, unfortunately was lost in the process somewhere, and we ought to take a serious look at and talk to those in the various committees to make sure it doesn't happen again. With that, we are going to call members in order of their attendance at this point, so Mr. Israel, you are recognized. DOMESTIC VIOLENCE Mr. Israel. Thank you, Mr. Chairman. Thank you, Dr. Roubideaux and Mr. McSwain. I have one question on the issue of sexual assault forensic evidence kits. According to statistics, one out of every three Native Americans have reported being raped at some point in their lifetime. IHS reports that between 2010 and 2014, 600 sexual assault forensic evidence kits were collected, and that seems very low to me, given the magnitude of the problem. Tell us exactly what you are doing to make the kits available, to train people to use the kits, and to deploy and collect these kits. Dr. Roubideaux. Well, we are actually doing quite a lot with the funding you have all helped us get for the Domestic Violence and Prevention Initiative. It has been funded since 2009. We have a little less than $8.9 million. Fifty-seven programs are funded, and I think that is the challenge is, we do not have enough funding to fund all the programs where it is needed. But of those programs that are funded, they are providing outreach and victim advocacy, intervention, treatment, policy development, community response teams. We are doing training of providers to be able to do the sexual assault examinations, to be able to use the forensic evidence collection kits accurately so that they can be used in court, and then we are training nurses to help with sort of not only the training but the counseling of the patients and making sure they get the care they need. So we are using the funding that we have from the Domestic Violence Initiative to help, you know, sort of increase the capacity in our system to do that but it is clear there is more need. Mr. Israel. Do you have any sense of what the backlog is in the actual testing of the kits? Dr. Roubideaux. I would have to get back to you on that. Mr. Israel. Okay, if you would. This Congress on a bipartisan basis has made the investments necessary in ensuring that the kits are available and that they are tested and that really the national backlog is being addressed, and I am curious as to where you fit into that effort. Thank you, Mr. Chairman. Mr. Calvert. I thank the gentleman. Next, Mr. Joyce. Mr. Joyce. Thank you, Mr. Chairman, and thank you very much for being here today. RECRUITMENT AND RETENTION It is my understanding that you have established volunteer programs in order to help provide health care to the different tribes, but you also have a loan repayment program that has helped bring professionals into the service. Could you explain to the Committee and myself some other direct examples of how IHS is working to address the health care provider shortage and how the loan repayment program has been helpful to you? Dr. Roubideaux. Yes. The loan repayment program has been very helpful to us, and we appreciate the funding for that. It basically helps health care providers work in IHS and get their medical school loans paid or their health care provider school loans paid, and as you know, the cost of school is going up and so it is really difficult for especially primary care doctors to handle the debt that they have. It is a very popular program. We use the program to prioritize the sites with the highest needs since the funds are limited, and we also have our scholarship program, which is a pipeline to bringing more providers into our program for American Indians and Alaska Natives. We are also--but we have a challenge, though, in that the loan repayment program and our scholarship program have an issue where portions of them are taxable and we have put a proposal in the budget to try to have--to ask Congress to help us to make them tax-exempt because it is very difficult for the providers to pay the loans and also have to be responsible for the taxes as well, and if we did not have to pay the tax part of it, we could fund more people with loan repayment. So we are also in terms of recruitment and retention trying to make our salaries more competitive. We have the VA pay authorities that we are starting to use more aggressively to be able to get the salaries up, and these days you have to pay primary care doctors over $200,000 a year to compete with everybody else out there in the market because there is a shortage. So loan repayment is very attractive. We work with National Health Service Corps on their loan repayment and scholarship program, with HRSA and the Department of Health and Human Services as well, so I appreciate your interest in this because it is a huge challenge that we have, and those are some of the program appropriations that the Committee gives us that we use to help fund those programs and activities. Mr. Joyce. I have been a beneficiary of it because my primary care physician has come from that program. Dr. Roubideaux. Really? Mr. Joyce. So I understand the need for it. Dr. Roubideaux. Great. Mr. Joyce. Can you describe how the services provided, through the Public Health Nursing program are cutting readmissions to hospitals? Dr. Roubideaux. Yes. We have had a Public Health Nursing program for many years, and it really does help us get some of the additional care that individuals need and coordination of care outside of the hospital or transitioning from when they have actually been an inpatient and getting immunizations out and those sorts of things, and we also--our hospital consortium effort is to try to help reduce readmissions, and that involves a lot of people making sure when someone is discharged from the hospital, they go home, they need a lot of people to help them so they do not end up back in the hospital, and our Public Health Nursing program is very strong and it is mostly tribally run actually. A lot of the tribes have taken over the management of those programs. It does help transition people in different parts of their care, so it is very valuable to us. Mr. Joyce. It is going to be the primary care physicians, the nursing staff going forward because of the shortage. Dr. Roubideaux. Absolutely. Mr. Joyce. Thank you very much. I yield back, Mr. Chairman. Mr. Calvert. I thank the gentleman. Next, Mr. Kilmer. Mr. Kilmer. Thank you, Mr. Chairman, and thank you for being with us. HEALTH CARE SERVICES There are a lot of folks in the area I represent that are grateful to this Committee for increasing the resources available to the IHS. At the same time, we hear concerns about quality-of-care issues. I was hoping you could speak to how IHS intends to address issues around quality of care and what can be done further to support some of those IHS facilities that want to provide the best care possible. Dr. Roubideaux. Yes. In the Indian Health Service, we actually have been working on some initiatives to improve quality of care, and this year is a year where I think we will start seeing the benefits of some of the planning we have been doing and start seeing some of these activities implemented. One is the expansion of our Improving Patient Care program, the patient-centered medical home. We not only want people to-- our sites to implement it, we also are asking them to become accredited, nationally accredited as patient-centered medical homes, and within that you have to demonstrate outcomes. You have to demonstrate that not only are you improving care but you are actually measuring those improvements and responding to what the patients need. So that helps throughout the system and that is sort of--we call it more of our outpatient improvement but it does apply throughout the system. The other part is, as I said, the hospital consortium, looking at improving quality and safety in our hospitals, and I just asked our team to sit down and, you know, prioritize their actions for this year and how they are going to measure the success and who is responsible and accountable and what their timeline is, and so I am hoping towards the end of the year we are going to see some real outcomes and progress on that. In addition, we have been meeting our clinical quality indicators under GPRA every year for a couple years so we have actually pushed the levels up, stretch goals to try to push for more progress, and so we are focusing efforts to try to get better outcomes as well. Mr. Kilmer. Thank you, Mr. Chairman. I yield back. Mr. Calvert. I thank the gentleman. Mr. Jenkins. Mr. Jenkins. Thank you, Mr. Chairman. Good morning. I am new to this Committee and new to this Congress, so I am going to maybe run through to try to get myself up to speed. CREDENTIALING One, there was discussion about credentialing, and you mentioned trying to look at best practices. To what extent does Indian Health Service and the tribes--I understand the frustrations of providers getting credentialed in a timely fashion. Do you have any sort of a uniform credentialing application trying to avoid the multiple primary source verification requirements at each step? Have you looked at a CVO, a credentialing verification organization, to try to expedite the process? Dr. Roubideaux. We are looking at those kinds of options because you are right, it does not make sense to have a provider to go to one facility, fill out one form, and then they move to another one and it is a totally different form. So I agree with you, that would be an efficiency that would make our business practices much better and be better customer service to our providers. Mr. Jenkins. Not only having a similar application but having some sort of a credentialing verification organization that does that primary source verification once so it does not have to be repeated over and over. ELECTRONIC MEDICAL RECORDS Secondly, with regard to EMR, you know, everybody gets excited. We all have been caught up in the wave, and we agree that that is the direction of health care delivery but an incredible amount of money can get dumped into it. There is frustration because of different types of EMR systems out there. What are you doing with regard to making sure that there is an EMR system that is robust for scheduling, for e- prescribing, but most importantly, the ability to share data between the prescriber, between the hospital with the patient? Unfortunately so many of these EMRs simply do not talk to each other and do not share data. Dr. Roubideaux. Absolutely, and I appreciate your interest in that. We have actually been an early adopter of the electronic health record and administrative systems throughout the IHS system since 2007 and 2008, and so when the new initiatives came out for Meaningful Use of the electronic health record, we were perfectly suited to be able to participate in that, and the IHS Resource Patient and Management System, RPMS, is one of the lowest-cost open source available electronic health care record systems in the country, so our costs to run it are much less than others. And you are right, we are hearing in the private sector some of those other electronic health records are costing huge amounts, and that is a challenge for the tribes that have chosen to use them. But our system, we are on a path with--we were certified in 2011 for Meaningful Use 1. We are now certified for 2014 certification, and actually the work we are doing right now very soon we will have that ability to share records, not only within the Indian Health Service but with other programs. It is the interoperability piece of Meaningful Use where you can share records. We are very excited about that because our patients are mobile. They move around a lot. Mr. Jenkins. Next, liability. I am very familiar with the Federal Tort Claim Act under claims for FQHCs and others. In the IHS and tribal world a claim for allegation of medical negligence, is that handled under Federal Tort Claim? Dr. Roubideaux. Yes. NEONATAL ABSTINENCE SYNDROME Mr. Jenkins. All right. Finally, one of my passion areas in substance abuse, and I want to drill down, is the treatment of NAS babies, neonatal abstinence syndrome, drug-exposed babies during pregnancy. What are you doing with regard to prenatal care, working with the OBs and the peds for post-delivery NAS treatment? I think there is significant savings that can be had by taking care of these newborns going through the ravages of drug withdrawal. There can be a more efficient process than being in a NICU and certain non-traditional spaces for dealing with the NAS babies. Is this issue on your radar screen, and if so, how are you handling it? Dr. Roubideaux. It is absolutely on our radar screen. We are seeing that occurring more and more in our facilities, and that is why our clinical leadership are working on training our providers to know what they need to do to make sure they address it as soon as possible, and we recognize the science. Mr. Jenkins. It is an area of interest to me, and I look forward to working with you and seeing where you are making those investments because the Chairman of our full Committee, he is looking for ways to be efficient and save money, and I appreciate the leadership of this Subcommittee, so I look forward to working with you. I yield back. Thank you, Mr. Chairman. Mr. Calvert. Thank you. POPULATION GROWTH A number of us recently traveled over to the Navajo Nation and the Hopi Nation, and the president of the Navajo Nation, President Shelly, told us that the Navajo Nation is projected to have one million enrolled members by 2050. They currently have 300,000 members, and President Shelly told us quite directly that we will not be able to afford them soon. President Obama's 2016 budget requests an increase of $57 million to partially fund population growth, what is the current population of people eligible for IHS services, and what is the projected population in 2050? Dr. Roubideaux. Well, our current population served is 2.2 million American Indians and Alaska Natives. In terms of a projection to the future, we are happy to provide that to you, those statistics. We would need to do those calculations. But there is no doubt there is a need. President Shelly is right, we have a population--the Native population is growing very rapidly and that is a challenge for us with the limited funds that we have. But we did try to address that in the budget by putting an increase for $57 million. It is about 81 percent of the total need, and we just are trying to balance other priorities in the budget and your constraints as well. Mr. Calvert. So what is the estimated amount to fully fund population growth in---- Dr. Roubideaux. To fully fund---- Mr. Calvert [continuing]. In fiscal year 2016? Dr. Roubideaux. To fully fund population growth in fiscal year 2016 would be $70.3 million. Mr. Calvert. Okay. So why did the budget request with a total increase of $461 million not fully fund population growth? Dr. Roubideaux. Well, we really wanted to but we had a challenge--we were challenged with all the other funding priorities and so sometimes our strategy is to try to fund as much as we can but to try to fund a little bit--a larger number of things but a little bit more. It does help us make progress. But it is a difficult choice because all of these priorities are important. Mr. Calvert. Ms. McCollum. Ms. McCollum. Thank you, Mr. Chair. I had asked staff a couple of questions about the Census, so it is my understanding that when we went away from the long form census form, we did not collect as much information. We have gone to a short form. So now it is up to the American Community Survey to capture this information, which is selected to represent each area. So rural areas are probably less likely to do this. So your consensus population number--and I mean no disrespect for you because you can only gather the information you have--is your best guess, right? Dr. Roubideaux. Correct. Ms. McCollum. And that affects us for schools and housing and health care and all of that. So maybe one of the things that we need to do is figure out how we get a more accurate number of what is going on in Indian Country and working with the National Congress of American Indians or something like that to do a census of Native Americans. So great question, Mr. Chair, because, you know, we could find ourselves thinking we are doing the right thing only to find out we are really short in doing it well. SPECIAL DIABETES PROGRAM Could I just ask you a little bit more about the special diabetes program? Because that is huge in Indian Country and it goes to treating the whole patient, to medical homes, and many the other things that you are working on, including youths with the indigenous youth program that the President is looking at. We saw some great success when we were on a CODEL. Dr. Roubideaux, you were there too, and it was a combination of funds from IHS, from CDC, and everybody else working together to make sure services are culturally competent so that you get the success that we saw. Now, this is, as you said, to expire at the end of this fiscal year, and your budget requests to reauthorize the program for another 3 years at $150 million per year. What happens if we do not get the reauthorization? Sometimes as appropriators, we are very frustrated that the authorizers have not done their job, so if it is not authorized, are there other parts of the preventative health that will help this type of support move forward? Also, is this model going to be used to work on other chronic diseases, to replicate the success that you have had with diabetes? Dr. Roubideaux. Well, to your first point, if we did not get the Special Diabetes Program reauthorized, it would be devastating. All the success of the last 18 years of we finally have shown we can increase services. We have shown that we can improve quality. We have a really good evaluation of it. We have shown that we can actually prevent diabetes and reduce cardiovascular disease risk factors in our communities and our facilities rely on that funding to be able to do that, to have staff that can focus on it. And you know, we are finally at the point to where complications of diabetes are going down. End- stage renal disease new cases are going down. The rate of diabetes is sort of equalizing out. We are not seeing the big increases we were seeing before in youth, and so there is actual data showing it is effective. So it would not make any sense to take an effective program that is operating on an amount of funding that, you know, a lot of people think is not enough, but they are still showing huge outcomes. It would be horrible for us to lose that. I would really ask you to help us with securing reauthorization. You know, the Special Diabetes Program for Indians did help us learn how to better take care of chronic diseases. IHS for many years has used the chronic care model to work on chronic diseases, and, you know, it is no longer the case that people mostly have just one medical condition. Many people have several medical conditions, and so the coordination of those chronic diseases is really critical, and so I think the Special Diabetes Program for Indians is a great model of how to do that. Mr. Calvert. Mr. Cole. Mr. Cole. Thank you, Mr. Chairman. You know, I think for 4 years in a row this Committee has actually exceeded the Administration's request on Indian health but my friend, the Chairman, makes a good point in that he is going to be working from a different baseline than we are. We are, in some ways, the victim of our own success, although that is a nice problem to have. We would like to give you everything you asked for, but if you could not get everything you wanted, what are the absolute most important priorities to continue the progress that you have been able to make in the last few years? Dr. Roubideaux. Well, we certainly hope you go for a fifth year of exceeding our proposal, but if not, if you cannot do that, we would be happy to talk with you more about these priorities. They are all priorities to the tribes we serve and they are all priorities to us. It is very difficult for us to prioritize, but if we could provide more information to help the decision-making, we would be happy to do that. Mr. Cole. I think that would be helpful, and again, if I had my way we would probably be doing more. I think the need is so great, and I think you have been a very good steward of the money that you have been given. Toward that end, this is again an informational request; things that you can provide us that show outcomes, changes from money spent is really helpful. You know, it is not just a money-in issue. It is okay, what is happening with mortality rates, what is happening--and you have mentioned some of the progress in your testimony. If we could get something that is systematic, it just strengthens those of us that make the argument that this is a good investment; not just an obligation, but something that is really changing people's lives for the better. So whatever tools or data you can give us, and if there is anything you would like to highlight right now, I would be more than happy to give you the time to do that. Dr. Roubideaux. Well, we would be happy to give you more information. I started tallying out all sorts of outcomes and accomplishments, and when I got to page 19, I thought, you know, there is so much, it is hard to choose, but we would love to give you more information on that. Mr. Cole. Please do, because it is okay to brag on yourself. Dr. Roubideaux. Yeah, and culturally we sort of learn not to do that, but we have to do it here. This is so important. The other thing is, I also hope we can talk about, I want you to know that the money you have given us we have spent effectively. We have been working on a number of improvements to make our operations more efficient. We have reduced travel by 50 percent. We have reduced conference expenditures by a third. We have been able to improve our budget execution and all those things. Mr. Cole. And I want you to be careful on that travel budget. I want to go on another one of the great Yvette Roubideaux-Jody Gillette reunion tours to Sioux Country that we all did, and---- Dr. Roubideaux. Save dollars for that. Mr. Cole [continuing]. By the way, this is very helpful to this Committee when we did do it. But yeah, again, I am very interested in those sorts of things. Dr. Roubideaux. Okay. THIRD-PARTY COLLECTIONS Mr. Cole. And I think it would help this Committee. Last question. I know you have been making a real effort on third-party insurance, because there are a lot of entities that ought to be kicking in to the system both, governmental and private insurance, that in the past have been able to escape their obligations, and more or less dumped this on you. I would love to hear your efforts with respect to trying to increase third-party payments that, again, are due and obligated to Native Americans, and to help us again meet the challenges that you have. Dr. Roubideaux. Absolutely. Most of our third-party reimbursements are with the Medicaid program, so we work very closely with them, and our facilities are very focused on trying to make sure we get those third-party reimbursements. We have an increased emphasis on the private insurance side of it as well, especially with the Affordable Care Act and especially with the increased coverage that we are seeing with our patients. We are trying to make sure that we are maximizing our third-party collections and getting as many of those reimbursements as we can. We have developed a new third-party collection tool on the federal side that sort of monitors how it is going and it will raise red flags if a facility is not doing well, and so we do corrective actions there, so we have got some oversight of that to help, and that is why we are proposing in this budget a $10 million increase because we really--with all the new health care plans and all of the increased coverage, we just need more funding to help us in our most needy sites with capacity building and training and technical assistance and also outreach and education to the patients. The more we can help the patients apply for Medicaid or get health care coverage, the more that we can reimburse and the more revenues we have so the pressure would not be so much on all of you. Mr. Cole. I applaud your efforts in that regard, and it is something I hope the Committee looks at going forward, because I do think it is a good investment. The return is obvious, and it goes exactly where we want the dollars to go. With that, again, thank you very much for the job you have done. I really, really appreciate it. Yield back, Mr. Chairman. FACILITIES NEEDS Mr. Calvert. Thank you. Ms. Pingree. Ms. Pingree. Thank you, and thanks again for being here with us today and for the work that you do. One question about facilities' needs. I know the budget has an increase for that, and I understand IHS does facility assistance for hospitals and a whole variety of other things, and I want to ask about sanitation service to homes. I was pleased to be able to see that because of our service area, the Nassau Indian Health Service area, we have been able to get assistance for 126 homes of the Passamaquoddy Tribe, 193 of the Passamaquoddy at Pleasant Point, Penobscot six, so helping with sewage facilities and cleaning drinking water, that is a very important thing, particularly in our rural tribes. I see the budget has an increase of $36 million, which looks like it is meant to provide sanitation for about 7,700 homes, but under your estimate, I think the need is 34,000. Can you give us a sense of how far you are going to be able to go with that and any other important parts of the program to make sure it is available everywhere it is needed? Dr. Roubideaux. Absolutely. The need is enormous. It is up to $2 billion need for all the Indian homes that we would serve, but we are, you know, very grateful to be able to propose an increase for sanitation facilities construction. We have not had that in the budget in previous years but we have heard that this Committee has actually been interested in it, and you have been interested in it as well, and so we are grateful for any resources that can go toward sanitation facilities construction. It is hard to imagine the challenges individuals have without having water and sewer in their home. It is just devastating to think about, and so I appreciate your help and support with this. Ms. Pingree. Thank you. You are right. It is unconscionable in this particular era that people have to live in those kinds of situations. Thanks very much. Mr. Calvert. Mr. Joyce, do you have any other questions? Mr. Joyce. No. Mr. Calvert. Mr. Kilmer, do you have any other questions? URBAN HEALTHCARE SERVICES Mr. Kilmer. I would like to, if that is all right. Mr. Calvert. Real quick. Mr. Kilmer. I will be really brief. One concern I heard was around provision of IHS services to folks in urban areas, and I am just hoping you can speak briefly to that and how the federal government can step up care for folks who are living off reservation or in urban areas. Dr. Roubideaux. Absolutely, there is no doubt there is a need there. If you look at census numbers, the majority of American Indians and Alaska Natives live in urban areas. IHS was actually designed to be for rural areas but they recognize the need that they are tribal members too and the federal responsibility applies to them. We are very supportive of our urban programs. We do provide funding for them to provide services. They still need to be there for the people in those urban areas. They provide the only source of culturally appropriate care and services. Many American Indians and Alaska Natives are away from IHS and so they really need that help and so we would like to work with you. We also just passed a new policy to confer with urban Indian organizations. It is part of the Indian Health Care Improvement Act Reauthorization. So I think we are very anxious to confer with the urban Indian organizations and to figure out ways that we can assist them and help them. Mr. Kilmer. Thank you. Thank you, Mr. Chairman. Mr. Calvert. Thank you, and I want to thank you, Doctor and Mr. McSwain, for coming here today and offering your testimony. Native Americans should be treated as any other American, and I think if we can find a way forward on this mandatory issue and to work with the respective committees that have jurisdiction over Indian Health, that is something that I think we can all work together to try to achieve. That would solve a lot of your problems and the problems for a lot of people around America. So with that, if there are no other comments, we are adjourned. Thank you. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Wednesday, February 25, 2015. BUDGET HEARING--DEPARTMENT OF THE INTERIOR WITNESSES HON. SALLY JEWELL, SECRETARY, DEPARTMENT OF THE INTERIOR MIKE CONNOR, DEPUTY SECRETARY, DEPARTMENT OF THE INTERIOR Opening Remarks of Chairman Calvert Mr. Calvert. The committee will come to order. Secretary Jewell, I would like to welcome you to today's hearing along with Deputy Secretary Mike Connor. Our hearing today will address the Fiscal Year 2016 budget priorities for the Department of Interior. Madam Secretary, this is your second formal budget hearing before our subcommittee as Secretary of the Interior. At the outset, I would like to thank you for the opportunities we have had recently to discuss many of the challenges facing your Department and this committee. Funding for fire suppression, Endangered Species Act issues, Indian education, PILT funding, and the severe drought affecting the West, including my home State of California, these are all issues your Department and this subcommittee must continue to address together. Today's hearing marks the beginning of a very candid conversation about your Department's funding priorities. Overall, the President's Fiscal Year 2016 budget request provides $11.8 billion in discretionary funding for the Department of Interior programs under this subcommittee's jurisdiction, an 11 percent increase over the Fiscal Year 2015 enacted level. While your budget request includes funding increases for many notable programs and priorities, I have an obligation to remind you and everyone in this room that again this year we are operating in a very constrained funding environment. To be frank, I am concerned that your budget request raises expectations that simply cannot be met. As you know, the President and Congress agreed upon statutory spending caps through the Budget Control Act. This budget request ignores those statutory caps. On this point, let me be very clear. We are bound by the spending caps under existing law, the 11 percent spending increase reflected in your budget request is simply not a realistic outcome. We will do our best to address the highest priority needs, but as we have discussed, any increases to specific accounts or programs will likely have to be offset against other accounts and programs in this bill. While we will not agree on every single issue, I know from our conversations that we both recognize the importance of listening to other points of view and trying to find common ground in solving problems. In that spirit, I would like to mention a few things before we receive your testimony. WILDLAND FIRE First, the challenge of providing adequate wildfire funding each year remains one of the great challenges facing our subcommittee. The cost of fighting wildfires, particularly the 1 percent of the most catastrophic fires that consume 30 percent of the fire budget, continues to grow. Naturally, this puts pressure on every other account in our bill. I want to applaud my good friend and former subcommittee chairman, Mike Simpson, for his continuing efforts to address this issue through his bipartisan legislation, which proposes that we treat catastrophic fires as we do any other natural disasters, like earthquakes, floods, hurricanes. Eight members of this subcommittee are co-sponsors of the Simpson bill. ENDANGERED SPECIES ACT Another challenge facing the Department and the committee is the Endangered Species Act. The ESA is a well-intentioned statute, but is long overdue for a legislative and budgetary overhaul. The ESA unfairly stacks the deck in favor of listings, creating a cottage industry for those making a living out of suing the government to list species. These lawsuits drive the budget and relegate recovered species to the back burner where they wait, sometimes for 8 years or more until the Fish and Wildlife Service formally proposes to take them off the list. The Fish and Wildlife Service should be held to the same standard for listing and de-listing, and we ought to structure the budget and the law accordingly. SAGE-GROUSE Driving the budget today is a potential listing of the sage-grouse. Western States are leading an unprecedented effort to conserve sage-grouse so that a listing is not necessary. If the Department lists the sage-grouse, American consumers will feel the impact at the gas pump and in their monthly utility bills. The settlement agreement deadline of September 30th, 2015 is arbitrary, and Congress has an obligation to continue to consider whether to override this deadline if necessary. In the meantime, I look forward to our discussion today for the funding increase proposed for sage-grouse in Fiscal Year 2016. PAYMENTS IN LIEU OF TAXES Identifying stable, long-term funding for the payments in lieu of taxes, PILT, is another major challenge. So long as the Federal government continues to propose acquiring more land without guaranteeing that counties will be fairly compensated for their lost tax revenue, serious questions will continue to be raised about more Federal land acquisition, especially in the West. Until a long-term funding solution is identified, PILT will continue putting pressure on the Land and Water Conservation Fund and other programs within this bill. DROUGHT Lastly, we are in the midst of a drought resulting in far- reaching consequences affecting families and businesses in the West, particularly in my home State of California. This subcommittee is limited in what it can do to address the drought. However, you are in a position to make a difference by ensuring that the Department does not repeat past mistakes that have exacerbated the conditions on the ground. In closing, Madam Secretary, I want to express my appreciation to your fine professional staff. This is a team effort, and our committee simply could not do its work without your budget shop, the various bureaus, and the folks sitting behind you. Thanks to each of you for the work that you do every day. With that, I am happy to yield to the gentlelady from Minnesota for any opening remarks she would like to make. Ms. McCollum? Opening Remarks of Congresswoman McCollum Ms. McCollum. Thank you, Mr. Chairman. Secretary Jewell, I join with Chairman Calvert in welcoming you to the subcommittee today. And I appreciate that you and Deputy Secretary Connor are here to provide insight into the Fiscal Year 2016 budget, and to answer any questions we might have. Madam Secretary, as I look over the budget request for the Department, I see a budget that recognizes the responsibilities that all of us have to be good stewards to our Federal lands and the natural resources they contain. I am pleased that this budget request builds upon the bipartisan commitment of this subcommittee to further the economic and social wellbeing of our Native American brothers and sisters, especially in the area of Indian education. While we have made some progress in addressing this issue that Native Americans face, we all know that there is more work to be done. It is also good to see the renewed commitment in the budget to preserving and interpreting our national parks with the upcoming centennial of the National Park Service. Combined with the new initiatives of the American civil rights story and the ongoing efforts you have to engage our youth, you are working to lay a strong foundation for the preservation of our natural heritage and our historical past so that we can build for a bright future. I also appreciate the strong emphasis on science in this budget. Our land and waters face continued and, in many instances, growing threats from invasive species, drought, and climate change. Our land managers and others need a body of scientific research that this budget would provide in order to make informed decisions, as the chairman was asking for, and take actions to address these mitigating threats. After years of diminished budgets with agencies barely holding their own, your budget request to turn the corner and put sequestration behind us is welcomed. That said, by no means is this an extravagant budget. Adjusted for inflation, this request proposes to spend less on the Interior Department programs than we spent a decade ago in 2005. Less than 2005. Madam Secretary, I know you share with me the concerns about the impacts diminished budgets in past years have had not only on the resources entrusted to the Department, but also the impact on the many dedicated employees who have been continually asked to do more with less. We can only hope that the Fiscal Year 2016 budget goes forward, that we can restore some sanity to the budget process, and that this subcommittee can get a fair, workable budget allocation that will enable us to provide the Department of Interior with the fiscal tools that they need to carry out their important work. Madam Secretary, I will have questions for you later on, and I appreciate the openness and the receptiveness and responsiveness that we have had in my short tenure as ranking member with the committee. I want to extend my thanks not only to you, but all the employees of the Interior Department who come to work each and every day doing more with less. And I look forward to your testimony. Thank you. I yield back. Mr. Calvert. I thank the gentlelady. We are also joined today by our distinguished chairman of the full Appropriations Committee, Chairman Rogers, and thank him for taking time to contribute to this important conversation. Chairman, if you would like to make any opening remarks? Opening Remarks of Chairman Rogers Mr. Rogers. I shall. Thank you, Mr. Chairman, for yielding. We wish you well, and we think we are in good hands. And, Madam Secretary, it is a delight to welcome you here. Thank you for appearing. Your Department oversees numerous entities, each uniquely charged and authorized with the stewardship of our natural resources and national heritage. Your Department was very helpful in my district just last year in working closely with the Corps of Engineers to raise the water level in Lake Cumberland back to its historic pool level, and incidentally, to save an endangered fish known as the duskytail darter. I appreciate the expeditious manner in which your Department handled those issues. You were helpful and cooperative in every way. I also appreciate that the Department has finally observed this committee's strong insistence that you would refrain from cutting the Office of Surface Mining State Grant Programs, and proposing fees on industry as a way to make up the difference. And I am pleased to see that the budget reflects the strong objections made by this committee in previous years and discontinues the fee proposal. Your budget request begins with an homage to President Obama's new and oft quoted mantra of middle class economics. As you well know, your Department is the steward of 20 percent of our Nation's land and accompanying resources, the largest supplier and manager of water in 17 States, the guardian of our national parks and historic areas, and the primary regulator of surface mines in the eastern U.S. So there is no question that it should play an important role in helping middle class America grow and flourish. Unfortunately, Madam Secretary, there are a number of issues with this budget request and larger politically driven policy priorities within the Department that cause me to question the Administration's commitment to middle class growth and our country's economic and energy security. Energy costs have a direct impact on job creation, public health, nearly every other issue of national importance. Families, schools, medical facilities, and businesses rely on cheap, reliable energy to keep our communities thriving and plan for the future. However, unrestrained regulatory requirements put forth by your Department are already raising energy costs on businesses and employees alike, forcing everyone to make tough choices and some even into the unemployment lines. In particular, I continue to be dismayed at the efforts of this Administration to summarily scrap and rewrite the 2008 stream buffer zone rule. Your Department has invested over $8 million in a grossly mismanaged rulemaking process, trying to redraft a rule that was meticulously crafted and thoroughly studied for 5 years. The more we learn about the new rule, the more we realize what a bad deal it is. Officials at your own Department claim that it would save no more than 15 miles of streams because in reality it would simply force the Appalachian coal industry to close its doors and set up shop somewhere else. That will have a tremendous impact on surface mining, an industry that sustains over 3,100 miners in Kentucky alone. Rewriting this rule jeopardizes thousands of jobs in a region where unemployment is already as high as 11 percent in many counties, all for the sake of miniscule environmental gains. Though coal plants are closing around the country under the weight of costly regulations and mine operators are dragged through arduous permitting exercises, the coal industry is not the only victim of the Administration's misguided energy policies. We have seen oil exploration aggressively stymied, and much needed pipeline construction projects back burned or, worse, vetoed. Meanwhile, the press has been flooded in recent weeks with accounts of so-called sustainable or renewable energy projects that are doing irreparable harm to the environment, sometimes at taxpayers' expense. Wind farms are devastating populations of rare birds and bats to the tune of millions per year. And solar panels are loaded with harmful pollutants and toxins. I am certainly not an opponent of renewable energy or environmental protection, but I do oppose government meddling in the energy marketplace that results in the artificial selection of winners and losers. For Federal regulations to overtake the marketplace as the decider of our country's energy portfolio is not safe for our present or our future. It may seem like it from Washington, but there is no winner in this approach to American energy policy. My district in Kentucky is currently facing some of the highest unemployment rates in the country, and the President's proposal to mitigate the destructive impact of his policies, the so-called Power Plus Plan, is a passing glance to communities that are in real pain. The most significant Power Plus proposals that fall under the purview of your Department involve mandatory spending programs, meaning they will require legislative action outside of this committee to be realized. You know and I know that this is not a real proposal until it is authorized. And while it is somewhat refreshing to see this Administration finally take ownership of the devastation wrought by the President's policies, the bottom line is that these are real coal communities. We need regulatory relief so that we can keep mines open, bring back some of these high paying stable jobs, and keep electricity rates around the country low in order for businesses to flourish and for America to compete worldwide. While we in Eastern Kentucky work together to diversify and grow our economy, we cannot lose sight of the fact that coal has kept the lights on for centuries, and that has to be a part of the conversation as we move forward. The way we handle these issues today will have a profound effect on energy security in the country. I hope that you will provide some insight as to how your Department plans to balance its dual roles of protecting our national resources and supporting the provision of reliable energy and economic opportunity. We look forward to hearing your testimony. Mr. Calvert. Thank you, Mr. Chairman. I am also pleased to see that our ranking member of the full committee, Ms. Lowey, is here with us today. I am happy to yield to the gentlelady for any opening remarks she would like to make. Mrs. Lowey? Opening Remarks of Congresswoman Lowey Mrs. Lowey. Well, I thank you very, very much. I am laughing because the chairman and I feel as if we are on roller skates today. We are honored and privileged to have four Secretaries with us. And I am particularly pleased to be here today, and I cannot help but think what a great privilege you have to have this extraordinary portfolio, and how privileged we are to have you in that position, so I thank you for your service and your commitment. I wish that I could do all the hiking that you do and enjoy the great outdoors as much as you do. So thank you very, very much. From conserving and protecting such national treasures as the Statue of Liberty and the Grand Canyon, to providing for the public use and enjoyment of nearly 500 million acres of Federal land, the Interior Department is indeed the caretaker of significant aspects of our national heritage. Add to that its responsibilities to Native Americans, wildlife, energy production, and far flung U.S. territories, and the Department certainly has a wide and varied portfolio. To carry out these important responsibilities, the Administration is requesting approximately $11.9 billion. If enacted, this request would reverse some of the steep declines these programs have suffered from in recent years, which led to a reduction in routine maintenance, aging, understaffed park facilities, and public lands at great risk of fire because they had not been properly managed. The President's 2016 request not only makes the programs in this bill a priority, he has provided to Congress an entire budget focused on critical investments, continued economic growth. The budget calls for investments in research, education, training and infrastructure. And I want to repeat again because I think it is so important, the proposed rule has also called for the end of the mindless austerity of sequestration, urging this Congress to replace it with more targeted spending cuts, program integrity measures, and the closure of some outdated tax loopholes. I understand many of my colleagues on the other side of the aisle have differences with how we address sequestration. Many are focused on the potential security concerns if we do not address the sequester on the defense side of the ledger. I see common ground, and I believe we can once achieve the compromise under the Murray-Ryan plan of 2013. Now, I want to make it clear that plan was not perfect, but it did provide a path forward for another budget deal. Without such an agreement, our appropriations process is deeply in peril, with discretionary funds on pace to be at the lowest levels since the Eisenhower Administration. The President's 2016 request would renew our commitment to our national parks as part of the upcoming National Parks Centennial, as well as the initiatives to preserve the sites and resources associated with America's civil rights story, and to engage our youth in outdoor activities. The investments proposed to advance the social and economic wellbeing of Native Americans are commendable. I am especially glad to see the additional funds and reforms directed at improving Indian education, as well as the efforts being directed at providing support for youth and families. I am glad to see the focus on the safe and efficient use of America's energy resources. Now, while some pay lip service to an all-of-the-above energy strategy, the Department has expanded America's energy portfolio. We are seeing a tremendous increase in renewable energy production on public lands, despite a lot of rhetoric, more oil and gas actually being produced on public lands than in the last years of the previous Administration. I am especially glad to see that following the Deepwater Horizon disaster, significant reforms were instituted to prevent such accidents and to protect lives and property. So Madam Secretary, in closing, I want to tell you again how much I appreciate your commitment and your passion that you bring to the job. I look forward to your testimony this afternoon. And I thank you, Mr. Chairman. Mr. Calvert. Thank you. With that, Madam Secretary, I am happy to yield to you for your opening statement. Opening Remarks of Secretary Jewell Secretary Jewell. Thank you very much, Chairman Calvert. It is great to be here. Ranking Member McCollum, and Chairman Rogers, and Ranking Member Lowey, thank you very much for your comments, and members of the subcommittee. This is a full table today, which is really great to see. As you did for me, I want to thank you for the collaborative working relationship we have with the subcommittee, and acknowledge Dave LesStrang, Rick Healy, and your staff members for the hard work they do on the budget. Joining me, Deputy Secretary Mike Connor, who is an expert on a number of issues, and so we will be going back and forth to make sure we get your questions answered effectively. I submitted a detailed statement for the record, so I will be relatively brief in these opening comments. This is a forward-looking budget that provides targeted investments to grow our domestic energy portfolio, creating jobs here at home, to build climate resilience, and revitalize our national parks as they approach their 100th anniversary. It invests in science to help us understand natural resources on a landscape level, and to apply that understanding to better manage America's assets for the long term, like the California Bay Delta and the Great Lakes, to name just a few. Importantly, the budget also helps fulfill our Nation's commitment to American Indians and Alaska Natives, including significant and much needed investment to help improve Indian education. LAND AND WATER CONSERVATION FUND I want to first talk about our investments in the lands and historic places that make our Nation proud and serve as economic engines to local communities. On the 50th anniversary of the Land and Water Conservation Fund Act, the budget proposes full funding of $900 million annually for LWCF programs. This is dollar for dollar one of the most effective government programs we have. NATIONAL PARK SERVICE CENTENNIAL Next year, we mark another important milestone in our Nation's history. The National Park Service will celebrate its 100th anniversary, and this budget makes historic investments to launch an effort to celebrate and revitalize national parks and public lands. The discretionary and the mandatory portions of the budget include a $150 million matching fund to leverage private donations to parks, and $859 million to provide critical maintenance investments to high priority assets. Additional funding of $43 million will provide staff to improve the visitor experience and support the expected influx of visitors during and after the centennial. CIVIL RIGHTS A third milestone we commemorate this year is the 50th anniversary of the Voting Rights Act. The budget proposes $50 million to restore and highlight key sights across the country that tell the story of the struggle for civil rights, such as the Selma to Montgomery National Historic Trail and the Martin Luther King, Junior National Historic Site. YOUTH One of my top priorities is connecting young people to the great outdoors and to our rich history and culture. We need to inspire and engage the next generation to be scientists, engineers, and stewards of our Nation's most prized assets. Particularly, just in our case, 40 percent of the Department of the Interior's workforce will be eligible to retire soon. This budget proposes over $107 million for Interior's youth programs to provide opportunities for our Nation's young people to play, to learn, to serve, and to work on public lands. We will accomplish this through cooperative work with youth conservation corps, schools, organizations like the YMCA and the National League of Cities, and enlightened private businesses. INDIAN AFFAIRS Next, I want to talk about the Administration's continued commitment to tribal self-determination and strengthening tribal communities. I recently visited Arizona to launch the Administration's Native American Youth Listening Tour to give young people in Indian country the opportunity to engage with Cabinet members directly about the challenges they face. My recent trip to the Arctic also included a meeting with youth leaders in Kotzebue, Alaska, who are helping their classmates cope with personal challenges. Across the Federal family, agencies are committed to working together to better coordinate our services to more effectively serve American Indians and Alaska natives. This budget holds promise for a brighter future for Indian youth through education, for Native American communities through economic growth and social services, and for improving the stewardship of our trust resources. We are requesting $2.9 billion for Indian Affairs, an increase of 12 percent, which includes full funding of contract support costs that tribes incur as they deliver direct services to tribal members. The Generation Indigenous Initiative includes a $1 billion investment in Indian education to support critical facilities issues and a comprehensive transformation of the Bureau of Indian Education to better serve and support tribes in educating their youth. I want to thank this committee for its strong commitment to Indian education. I was really glad to be able to join the Chairman, the Ranking Member, Congressman Cole, and Congressman Simpson on a visit to Moencopi Day School in Arizona just last month. Thank you for your focus and dedication to finding a long-term solution to this important obligation. ENERGY When it comes to powering our Nation, the budget continues to invest in both renewable and conventional energy so we can diversify our domestic energy portfolio, cut carbon pollution, and reduce our dependence on foreign oil. The budget includes $100 million for renewable energy activities like the Desert Sunlight Solar Farm in California, one of the world's largest solar projects now delivering clean renewable energy to American consumers from public lands. We also propose a total of $658 million for conventional energy programs. SCIENCE This budget invests in science and technology initiatives to support energy development, create economic opportunities, and help communities build resilience. The budget includes $1.1 billion for research and development activities that range from scientific observations of the earth to applied research to better address problems, such as invasive species and coastal erosion. The budget also includes a total of $147 million to fund projects to help coastal communities, especially tribes, insular areas, and land management bureaus that use the science and technology to strengthen their climate resilience. WATER Finally, I want to touch on two other areas impacted by a changing climate: water and fire. Western States are on the front lines of dealing with both of these challenges, drought and catastrophic wildland fires. First, the budget includes $1.1 billion for the Bureau of Reclamation to support water availability projects, Indian water rights settlements, ecosystem restoration, healthy watersheds, and sustainable, secure water supplies, through the Water Smart Program to address drought and other water supply issues across the West. WILDLAND FIRE Second, this budget renews the call for a new funding framework consistent with Congressman Simpson's bill for wildland fire suppression, similar to how costs for other natural disasters are met. The initiative proposes a base funding level of 70 percent of the 10-year average for suppression costs within the discretionary budget, and an additional $200 million available in the event of the most severe fire activity, which comprises only 1 percent of the fires, but 30 percent of the costs. This is a common sense proposal that would help ensure USDA and Interior don't have to rob our budgets for fire prevention in order to fight the Nation's most catastrophic fires. In closing, this is a smart and balanced budget that enables the Department to carry out these important missions. I look forward to discussing these issues and the many other important investments proposed in this budget with you during your questions. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Calvert. I am happy to yield to the full committee chairman, Mr. Rogers, for his questions. STREAM PROTECTION RULE Mr. Rogers. Thank you, Mr. Chairman, for yielding. Madam Secretary, the Office of Service Mining has spent more than $8 million over the past several years to develop a rule on stream protection to replace the 2008 stream buffer zone rule which was tossed out by the Court. It has been wrought with controversy, and this subcommittee and committee has taken action to stop that process every year for the last 4 years. The main thing I wanted to ask you about is cooperation with the States. As you well know, under the Surface Mining Control and Reclamation Act, SMCRA, the statute by which you are claiming authority to draft this new rule, the States have the lead authority in regulating mining operations, with your Department operating merely in an oversight capacity, which means you are bound by law to work with the States in developing this rule. And I am hearing from a number of the States saying that they are not being consulted adequately, that their suggestions are ignored, that they do not feel like they are getting proper information into developing the environmental impact statement for the rule. And I am wondering if you can tell us what kind of cooperation are you giving to the States as you discuss this proposed rule. Secretary Jewell. Mr. Chairman, I know this rule has been pending for a very long time. We are getting close to submitting our rule for public comment so we can finalize it. I know those discussions have involved States and many stakeholders, businesses, environmental groups, and community citizens who live in the proximity of these mines no matter where they are around the country. The OSM in its efforts have been very broad in taking in input, and once we release the rule, there will be an opportunity for a tremendous amount of public comment and reaction. I will say that in my experience as we work to update very old regulations, and this is one of them. It has been around for, I think, more than 30 years. Science moves. We learn more than we knew at the time. We understand more about the impacts. We understand the benefit of these resources, and so all of that will be taken into account. Certainly we will be taking input from States along with others as we have on this journey when the rule is released and we are in the public comment period, which we expect will happen relatively soon. Mr. Rogers. Well, I know that the law, the statute on the books, mandates that you consult heavily with the States, that the States have the premier authority in regulating mining operations, and yet they tell me that it is like talking to a brick wall with your Department. The States are not being consulted properly. They say they do not feel as though OSM has incorporated any of their comments into draft statements, and they are threatening to walk away from the process all together. So something is not right here. Can you help us out? Secretary Jewell. Certainly I will talk with our people at OSM. I know that Joe Pizarchik, who leads that activity, was a State regulator in the State of Pennsylvania. In my conversations with him he seems keenly interested in input from the States and recognizes the importance of coal in those communities, and also the long-term impacts it has had on some of the hydrology of those areas. He is walking a fine line to balance those things, but I will certainly have a conversation with him about your concerns, Mr. Chairman. Mr. Rogers. The few times when OSM has asked for the States for comments on draft documents, the timeframes they are given to answer are unrealistic, some less than 5 days to respond to OSM. And I know many of the States are wondering if OSM even still considers them to be a partner in the process. If this partnership is still intact, does OSM have any plans to make a more earnest effort to seek input from the States in the form of substantive comments? Secretary Jewell. I will certainly speak with OSM about that. My understanding from them is they are very interested in State input, and I cannot respond to the 5 days response time, but I will look into that, Mr. Chairman. Mr. Rogers. Can your Department provide this subcommittee with a memorandum of understanding that they executed with the States when this process began? Secretary Jewell. I will do that if there is such a thing. I do not know. Is there a memorandum of understanding? Is that your awareness? Mr. Rogers. That is my understanding. Secretary Jewell. Okay. We will track that down for you. [A sample of the memorandum of understanding with the States follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] OSMRE BUDGET Mr. Rogers. The States, as I said, are primarily responsible for most of the regulatory work, but yet OSM is asking for a $5.5 million increase for itself and cutting the States' grants by more than $3 million. What would that extra $5.5 million go for? Secretary Jewell. Do you have anything specific on that, Mike, if you can look at that? Let me talk to the $3 million difference while Mike is looking for that. The money to the States for state requirements is equivalent to the amount we have put in the budget. It is about $3 million. We did not have State requests up to the amount we had last year, so there is some carryover. We put in the budget an amount we believe will be adequate for what the States' needs were, but if they end up going a few million dollars over that, we have carryover from the prior year we could apply. There is essentially no cut from what we believe the demand from the States will be. Mr. Rogers. Well, what I am talking has real consequences in real life. I have got 9,000 miners in my district laid off in the last few years. I have got able-bodied young men with families formerly making $70,000, $80,000 a year in the mining business now trying to find a job at McDonalds, unsuccessfully I might add. They have young kids. They have mortgages to pay. They are able-bodied. They are great workers, with the best work ethic in America. They are being shoved out the door, and unfortunately by their own government, and it is not right. I yield. POWER+ Secretary Jewell. Mr. Chairman, may I just quickly respond? You referenced this in your opening, Mr. Chairman. The Power+ proposal takes some of the Abandoned Mine Land funds sitting in the Treasury and asks them to be accelerated forward to address exactly that issue--$200 million a year over 5 years from money that is existing in the Treasury for Abandoned Mine Land funds. We propose to use the funds to help those communities, like the ones you just described, to help re-train them in areas such as mine restoration, fixing some of the devastating impacts of mining over years past to those communities, and developing skills for jobs of the future. The Power+ proposal is certainly an attempt on our part to address the very real consequences in many of these coal- producing States where the least expensive coal has been mined. We appreciate this is a challenge for your State and a number of other States, particularly in Appalachia. Mr. Rogers. Well, let me thank you for the Power+ Program. It has a lot of things going for it, and I welcome that. However, unless the law is changed, the OSM money, the Abandoned Mine Lands Fund, could only be used for reforestation, which is good. I have been pushing that for years, but it is a limited use of that money. I wish we could free up that money for economic development to bring in the new jobs of this world that we live in today, so I welcome the attempt to use that $2 or $3 billion that has been collected. Secretary Jewell. I think it is $2.4 billion that is sitting in the account. It is a lot. Mr. Rogers. I cannot tell you, yes, but it should be used for today's purposes. And the money came from a tax, if you will, on each town of mined coal. Secretary Jewell. That is right. Mr. Rogers. So the proceeds of that ought to be going back to those areas where it came from, but if it is only for reforestation, it would not provide that many jobs. Secretary Jewell. And that is what we are attempting to address with Power+, and I think there is a good case that can be made for legislative action. Mr. Rogers. Good. Mr. Calvert. Thank you. I am happy to yield to Ms. McCollum. Ms. McCollum. Mr. Chair, at this time I would like to yield to the full Committee ranking member, Mrs. Lowey. JOBS AND THE ECONOMY Mrs. Lowey. Well, thank you very much. Getting back to jobs and the economy, according to your Department, in 2013, Interior's programs contributed an estimated $360 billion to the U.S. economy and supported more than two million jobs. That is a pretty good record, so I hope we can continue in that direction. HERITAGE AREAS The budget request, however, once again proposes to cut national heritage areas this year by 51 percent. In 2013, the National Park Service released a report stating that the 49 national heritage areas contributed $12.9 billion annually to the national economy, supporting 148,000 jobs, generating $1.2 billion in Federal tax receipts. In my region, the Hudson River Valley National Heritage Area, contributes $538 million to the State's economy, supports 6,530 jobs, and generates $66.6 million in tax revenue. So it is an important program to spur tourism and economic development, and is popular obviously among the people who live in the region. Can you tell me if you are concerned that slashing funding by nearly half would jeopardize the contributions that heritage areas make to promote job creation and outdoor recreation? And can you please explain why the proposed cut to the program is so large? Secretary Jewell. Thank you, Congresswoman Lowey, and I appreciate your passion for National Heritage Areas broadly, and specifically in the Hudson River Valley. I share a passion for National Heritage Areas, as we have talked about before. This is not as big a budget as I would love to have, and we had to make some difficult choices. With the Centennial in 2016, and with the condition of a number of our park facilities being in pretty tough shape, and knowing we are going to have increased visitation broadly, we did prioritize resources toward critical projects to address where we think we are going to have the highest visitation and the greatest challenges with the facilities that need to be repaired. We did prioritize engaging youth in our parks, getting kids involved in these resources. We have a golden opportunity with the Centennial to do that because of the increased visibility. We did scale back the National Heritage Areas. They are one of the areas that has the potential for the highest leverage. In other words, communities support them in a very significant way, so there is no question I would love to support them. I would love to keep the level high or even higher, but we did make some difficult tradeoffs, and that is one of the areas we traded off within the National Park Service budget. Mrs. Lowey. Well, I really do hope that working together with the distinguished chairman of the committee and all the members of this committee who care so much about this account, we could work in a bipartisan way so we can end sequestration and bring some thoughtfulness to this process, because it is unfortunate to cut or decrease funding for programs that really do work, and, again, create jobs, strengthen the economy, which is what we are all about, Democrats and Republicans. HURRICANE SANDY RESTORATION Let me just ask one other question because I know we are running out of time. It was just 2 years and 4 months ago that Hurricane Sandy battered a wide swathe of the Mid-Atlantic and northeast causing significant damage to communities and natural resources in the areas. National parks, such as the Statute of Liberty, Gateway National Recreation Area, sustained heavy damage. If you can give us an update of what progress has been made in restoring these and the many other natural and historic resources that were damaged by Hurricane Sandy, I would appreciate it. And are these restoration projects being rebuilt to frankly provide more resiliency to any impending storm? These storms we used to think come every hundred years. They seem to come every couple of years. So if you can comment, I would appreciate it. Secretary Jewell. Thank you. Well, having been to the Statue of Liberty and the national recreational area in New York, Jamaica Bay, working alongside kids on restoration activities, I would say we are well under way. We received about $450 million to mitigate activities within our bureaus, and those are in process. Of course, you know we got the Statute of Liberty reopened on the 4th of July in 2013. In addition to those projects on our lands, we got $342 million dollars from the Sandy funding to increase resiliency of coastal habitat and infrastructure. With that, we have completed and reviewed resilience projects of $214 million. We had $102 million in competitive grants we put out to communities to basically put forward proposals. Those are highly leveraged dollars. We got $74 or $75 million in additional money over and above the $102 for 54 projects, and we are getting ready to do an evaluation of how those projects work. The money is in the process of being spent, or has been spent or obligated. And we have learned tremendous lessons, including the science behind what the green infrastructure did to protect communities and how can we replicate that. That is exactly what we are doing in these projects here. Mrs. Lowey. Thank you very much. Thank you, Mr. Chairman. Secretary Jewell. Thank you. Mr. Simpson [presiding]. We have votes going on, and Ken went over to vote, and he will be right back, and then some of us will go vote. And we are trying to not waste your time too much. SAGE-GROUSE A couple of questions. I am a little perplexed by one of the statements in your--I guess not perplexed, but there is a statement in your testimony I do not understand. ``I ask the committee to remove the rider included in the 2015 Appropriation Act that prevents the Fish and Wildlife Service from writing rules to list several species of sage-grouse. Our approach to working collaboratively among Federal agencies, States, and local stakeholders could provide the path to conserving species and Endangered Species Act protections for both by State.'' We agree with that, and we think that is the right way to go. We do not know why the rider is creating complications for that. All we are saying is we are preventing the listing so that the Department has the time to actually do these cooperations with the States and come up with plans so that ultimately--and I think this is what we all want--is not to have to list sage-grouse because, frankly, it would be devastating on the West. Let me ask you this, and obviously I do not know the answer to it or I would not ask it. If a determination is made-- ultimately whenever Congress allows the determination to be made--on listing of the sage-grouse, is it an all or nothing determination? Different States cooperate differently with the Department in trying to save the habitat? Let us just say, for example, a hypothetical. Wyoming is doing a fantastic job working with you, doing the preventative measures to try and preserve the habitat. And let us say Idaho is just being obstinate and will not do anything to protect it. When you make a determination, do you have to say we do not list it in Wyoming, we do list it in Idaho? Can it be that way, or regionally, or is it across the landscape, or nothing? Secretary Jewell. The short answer is it is the greater sage-grouse, which is across the broad landscape. That is what we are looking at. I just have to say a couple of things. One is to commend the support from the States for the work of the BLM, and the Fish and Wildlife Service, and the State Wildlife Management agencies. We are working together like has never happened, I think, in the history of the United States when it comes to the preservation of landscapes. We talk about the greater sage-grouse, but really it is the sage steppe ecosystem, mule, deer, antelope, golden eagles, you name it. There are 350 species that depend on this, and it is really the old growth forest of that region of the country, and a lot of these sage brushes are 150 years old. The greater sage-grouse is the species we are assessing as to whether or not it should be listed. We have a court-ordered deadline of September 30th, 2015, and the rider in the bill at the end of last year did not change that court-ordered deadline. We are pursuing a determination full speed ahead and considering all of the complexities of really the different ways that different States have to face the preservation of this sage steppe. It is different in Idaho than it is in Wyoming. Mr. Simpson. Sure. Secretary Jewell. It is different in Nevada than it is in Utah. We are working with strong State plans, and we had some helpful executive orders from a number of different governors that provide reassurance to the Fish and Wildlife Service that they need. We have revised, I think, 98 different resource management plans for the BLM and consolidated those into I think 15 different EISs being finalized right now. Everybody is working toward a goal of taking care of these sage brush steppe landscapes so that a listing is not warranted. That is something we all share in common, and we have got to get across the finish line with that, and the Fish and Wildlife Service has that court-ordered deadline. The rider did not allow us to write any rules to list, so it does not stop the Fish and Wildlife Service from doing its work on a determination. We have got funding in this budget, and there is more proposed in this budget to take care of these landscapes. The Fish and Wildlife Service is going to have to make a determination of whether listing is warranted, which everybody would share, threatened or endangered, and they have to do that unless the court gives us additional time. We hope listing is not needed, and then the rider will not make any difference. If it is warranted, we will be in a difficult situation where a listing is warranted, but we cannot write a rule to say what that means and how we then go forward. Mr. Simpson. And the reason I ask the question, though, is we are looking at this broad landscape. Secretary Jewell. Yes. Mr. Simpson. I mean, it covers the whole western United States essentially. The same thing happened with wolves when they reintroduced them as a non-essential experimental population in Montana, Idaho, and Wyoming. And they put requirements on 10 breeding pair in the three States. Idaho and Montana did their job, and they got breeding pairs in the 30s, 40s, 50s. Wyoming did not, and when Fish and Wildlife Service came in and said we are going to de-list in Idaho and Montana, the judge said, no, you cannot do that, it has got to be all three States. So we are being punished because Wyoming would not do what was required of them, and it was Congress that overrode that and said, no, that is not the case. And I wonder, how we are getting cooperation, and we are getting different levels of cooperation I am sure from all the different States and different levels of concern. I am wondering if those States that are working with you trying to save this sage brush steppe and those States that are not, are we going to get punished because they are not cooperating as well? Secretary Jewell. I think it is fair to say we will rise and fall together on this one because of the nature of this bird's range. Mr. Simpson. Can we clip its wings? [Laughter]. I am just kidding. Secretary Jewell. But this is an unprecedented effort, and I just cannot say how much I appreciate the cooperation. Yes, we have had some to the table early, and we have had some to the table late. The more teeth there are in their proposals, the more the Fish and Wildlife Service can rely on it. The more voluntary measures that are unproven, the less they can rely on it. Every governor, every State wildlife person working on this knows that. We are feeling really good about the amount of work that has been done, and we remain optimistic that listing can precluded if we keep pedal to the metal on this within the timeframe. Did you want to jump in? Mr. Connor. Just on one other point if I could. Secretary Jewell. Yes. Mr. Connor. You asked about the complications of the existing rider, and the Secretary has explained everything having to do with greater sage-grouse. One of the complications has to do with the Gunnison sage-grouse, which is under the rule, and so it is listed now. The Service did make its determination prior to the rider taking effect. One of the things that we can do to provide regulatory certainty is to do a 4(d) rule since it was listed as threatened in which we would basically take the conservation actions that have been committed and put that into a plan. If people are moving forward with those conservation actions, they have got no issues with the Endangered Species Act. That is one thing precluded by the existing rider, that we cannot move forward with that 4(d) rule. Mr. Simpson. Thank you. I have several other questions relative to BIE schools, and PILT funding, and so forth, but I will ask those when my turn comes up and I am sitting over here. [Laughter]. Ms. McCollum. CLIMATE CHANGE Ms. McCollum. Thank you. Secretary Jewell, I note with interest that you are requesting a total of $195 million to help prepare communities for the challenges of climate change. We only have to look at the Washington Post this morning to see how Alaska natives are impacted by this. There has been debate about the causes of the change. The effects of climate change are seen nationally. Much of the West is in an extended drought, as has been pointed out in some of the questions that the Chairman offered up to you earlier. We have grizzlies that are already awake in Yellowstone National Park, Boston snow pack. Alaska snow is to the point where the Iditarod sled dog race was forced to shift its route again. They have been having more and more problems having reliability with the dates on that race. So could you talk about the work that you are going to do with local communities to address the impacts of climate change? What steps are you taking on Federal land to better understand and help prepare for the impacts? And how will this program also help our U.S. territories that are dealing with rising sea levels, as well as the coast here on the mainland part of the United States? Secretary Jewell. Mike is going to jump in on this. Mr. Connor. Our climate change programs at Interior are on three levels, two of which I think are specifically relevant to your question. We have our real energy program where we are trying to reduce carbon through those programs. Building community resilience, the adaptation action that you referenced, and then I think it is incredibly important we continue to invest in science to inform ourselves about how the impact of climate change is affecting our resources. With respect to the adaptation programs and building resilience, we are investing in this budget about $195 million overall. We want to replicate what we are doing with respect to the Hurricane Sandy initiative through our $50 million proposal for coastal resilience grants. We think the first cut reading of the projects that were done as part of Hurricane Sandy is they were very positive, and they will have benefits with respect to storm surge and long-term resilience. We want to replicate that along other coasts. On the landscape itself, BLM, Fish and Wildlife Service, and National Park Service each have a $10 million challenge cost share grant program for climate related projects. Of course, our budget continues to support the 22 Landscape Conservation Cooperatives that we have as well as our eight Climate Science Centers, so $195 million on the ground to try and deal with resilience activities. I forgot to mention our $50 million tribal climate program. We have invested about $8 and $10 million over the last couple of years to try and build capacity in tribal communities with tribal leaders to be able to address their needs. This budget would bump up activity in 2016 so we could actually take that capacity and start to do projects on the ground to build resilience. The last thing I will note is we have $83 million in climate variability science with USGS focused on the Arctic, focused on coastal communities and sea level rise, drought, and storm surge and flooding activities that we expect to increase as a result of climate change. That is the broad portfolio we have. Secretary Jewell. I would just add one other number to the complexity. There is $7 million in the budget for climate resilience specifically for Insular areas. They are on the front lines, and I met with them yesterday. They were in town, and they are seeing lots of impacts in very real time. Thank you. Mr. Calvert [presiding]. Thank you. Just for information, there are about 2 minutes left in the vote. 300 members have not voted yet. [Laughter]. Secretary Jewell. Wow. Mr. Calvert. I have already voted, so I am just going to continue this until the next vote is called, and then I will have a 10-minute recess, and then we will just come right back after the next two votes. Ms. McCollum. I would have gone up and voted with you had I known that. Mr. Calvert. Oh, I am sorry. Ms. McCollum. Because now none of us have voted. Mr. Calvert. I know. Ms. McCollum. I trust you with my life. Mr. Calvert. I will not do anything too controversial. [Laughter]. Mr. Israel. Mr. Chairman, I will not be able to return, so I will submit my questions in writing. Mr. Calvert. Okay. Mr. Israel. Thank you. Mr. Calvert. Thank you. Okay. We will see you in a few minutes. Ms. McCollum. I am keeping my eye on you. Mr. Calvert. I am just going to talk just a little bit about the California drought while you are away, how is that? Ms. McCollum. Oh, good. [Laughter]. DROUGHT Mr. Calvert. A first vote round here, a 15-minute vote usually takes a half an hour. As you mentioned earlier, things never are on time around here. Since you have Deputy Secretary Connor with you today, Madam Secretary, and since California is the only one left here, I thought I might ask a question about our drought. As you know, you and Mike are the water masters of the West and the Southwest, and we have been experiencing severe drought conditions, and in my home State of California probably more severe than the rest of the Western States. Although there was some rain in December, it was the driest January since we have been taking records as I understand. So could you for the record provide an update on the current extent of the drought, what you have learned from the drought crisis in 2014, and how this year compares to previous droughts? Secretary Jewell. Go ahead, Mike. Mr. Connor. I will start with the latter part. This year's drought is every bit as bad as last year's drought with respect to the lack of precipitation. We did have a decent December, but then it all dried up in January, as you pointed out, Mr. Chairman. The problem is we went into this season with substantially less water in storage than we had even last year, and the impacts of the ongoing drought will be as deep or even deeper than they were last year. Of course, last year was the harshest time ever. I think overall, the landscape is very difficult with respect to the challenges we are facing. Just to give some context, historically we have pumped around, in good years 5 and half million acre feet per year to supply the Federal project and the State water project. Over the last couple of years with respect to the drought, in 2012 and 2013 we pumped anywhere between 4.2 to 4.8 million acre feet, so significantly lower. Last year with the impacts of the drought, we ended up pumping about 2 million acre feet of water, so less than half of what we had even done in 2012 and 2013, and that situation is likely to continue. It is very much a function of the drought. I would just note we are about 2 to 2 and half million acre feet below even the water levels of previous droughts, and I know there has been a lot of focus on the Endangered Species Act, and certainly that is affecting the availability we have for pumping water because of restrictions. But of that reduction last year, only about 65,000 acre feet was related to the Endangered Species Act. That is 65,000 feet that is incredibly important to somebody, and I certainly understand that, but it is 2 percent of the overall reduction we have had because of the drought. Nonetheless, I think on the positive side, we did learn some lessons in last year's drought, and we have improved our monitoring capabilities, our ability to, in real time, understand where the fish are with an overall goal of trying to improve operations when we can during those precipitation events like we had finally at the start of February. One of the improvements from last year is last year we allowed some increased pumping over what the biological opinions would normally allow, but then we required mitigation on the back side of that. There were certainly concerns about whether or not we were having net gain. This year, we have re-looked at the science. The Fishery agencies concluded they do not necessarily have to get immediate mitigation. We can look at other opportunities to mitigate for higher levels of pumping. If we have the opportunity for higher levels of pumping as part of our drought strategy, we are going to do that. We are going to implement those higher levels and try and take as much water as we can. We did that for about a week in the aftermath of the storm we had a couple of weeks ago. Mr. Calvert. And I am glad to hear that you are using your tools the best way you can, and modeling, forecasting in the future. But as you mentioned, the regulatory constraints, in this case the Endangered Species Act, the biological opinions that you are operating under presently. As I understand, this last storm surge we had, for instance, this small storm, we talked previously about this. But what I hear anecdotally from people in California was they still were not able to pump to the maximum degree possible because of the way some people were interpreting the biological opinion. I think you can pump up, what, to 7,500 CFS in that instance, and I understood you never got to 7,000 CFS. Is that correct? Mr. Connor. What it would allow is us going up to about 7,500 CFS. The controlling factor is reverse flows on Old Middle River, and if you are at the maximum levels in our drought strategy, it does allow about 7,500 CFS of pumping. I think we got over 7,000 for a couple of days. We were well over 6,500 for a couple more days. We did better, but you are correct in relating we were not at that maximum level the entire time. What was happening was a daily decision about what we could do. Mr. Calvert. Right. Some of the critics on the ground would say that you could have operated under the biological opinion, and I know you are operating this very conservatively, but at least 10,000 acre feet or more was lost because of that. And as you know, 10,000 acre feet of water in this environment is a lot of water, but if we get these storm surges from time to time in an emergency that we are in, every drop of water counts. And so, if we are not endangering any fish, if we are not endangering the smelt, you know, I would continue to emphasize that we need to make sure that we operate that with the maximum flexibility possible to make sure that we get every drop of water we possibly can in this emergency because I suspect this summer things are going to get a lot worse. And I am not sure what the Metropolitan Water District is going to do in Los Angeles, and what others are going to be doing throughout California and the West, but it is a significant problem. COLORADO RIVER STORAGE Let us talk about the Colorado River a little bit. What percentage are you down in storage in the Colorado River system now? Mr. Connor. I think overall, we are at about 45 percent storage capacity between Lake Mead and Lake Powell right now. Once again, the 15-year drought in the Colorado River system is every bit as bad as the situation in the Central Valley of California. The difference has been the storage that we started with. And, 15 years ago in 2000 when the drought cycle started, those two reservoirs were at full capacity. We basically had a few good years within the 15 years, but most of them have been below average. Because of that, we have not yet incurred any shortages on the lower Colorado River. When we hit elevation 1075 at Lake Mead, the States of Nevada and Arizona will start talking shortages. Right now, we will not have a shortage in 2015, but we are looking at significant possibilities starting in 2016 and 2017, and I think there is around a 20 percent chance we will be in a shortage condition in 2016. It goes up to almost 50 percent after that, so it is also a serious situation. Mr. Calvert. The storage in the Colorado River system is how many acres? Mr. Connor. It is about 60 million overall, and those two reservoirs are 50 million of it. Mr. Calvert. Right, and that kind of tells the story in the Bay Delta area. How much storage do we have up there? Mr. Connor. Oh, I think between all the reservoirs, Shasta is the largest and it and Oroville are the two largest, and they are about, I would say, 10 to 12 between all of them. Mr. Calvert. So in the long term we have got to get additional storage in that area. And there is a lot of frustration that many years have been spent, and I drafted the legislation originally to do this, and I think that has been 12 years ago. Mr. Connor. 2004, yes, sir. Mr. Calvert. And how far along are we to the point where we can actually start issuing permits to start developing these water storage projects? Mr. Connor. We are at the tail end of several of the feasibility studies and EISs, and I am going to segment it that way because issuing permits will necessitate us figuring out the financing for our facilities. The threshold is to finish the environmental work and the feasibility work. With Shasta Dam raise, we will be including that this year, the feasibility studies and the final environmental impact statement. We have a draft feasibility and a draft EIS with respect to Temperance Flats on the San Joaquin. One of the storage studies that was contemplated was Los Vaqueros Dam in the delta, and we completed the raise itself. We are doing the environmental analysis and Contra Costa is paying for a dam raise there. They are now evaluating a second raise at that facility. Then sites off stream on the Sacramento are lagging a little bit because for several years we did not have a cost share partner with the State. I think all of that is ready to change. We are working with the Joint Powers Authority up in the Upper Sacramento, and the State, I think, will have a new agreement to move forward with those feasibility studies. We will probably at that point in time for efficiency purposes turn over the EIR process, the environmental impact review process, to the Joint Powers Authority and the State itself and let them take it forward. But they do want us to finish the feasibility work. Mr. Calvert. And we understand that, all the work has been taking place. I know that you do not run the EPA. You have enough issues on your table, but it is under our jurisdiction, was involved in every meeting and was there every time, and then they recently have thrown a monkey wrench into the entire process, which is somewhat frustrating because everybody has been working reasonably well together like good boys and girls, and all of a sudden they throw a wrench in this process, is somewhat frustrating. We have the same frustration with the State Water Resources Board. As you know, recently we had a number of agencies that agreed that we needed more flexibility in the short term to operate the system up in the north, and then for whatever reason, the State Water Resources Board thinks they know best, so they stopped that. Senator Feinstein, myself, and a number of members, sent a letter urging them to reconsider. But short term, we need flexibility to operate so we can get every drop of water that we can, and long term obviously we need to build this additional storage in the north to make sure that we prepare ourselves. If climate change is occurring, we have to be prepared to capture this water as rain rather than snow, and we have to do what is necessary as quickly as possible. I am going to recess because I think the second vote is going to start any second. And we will be back in about 10 or 15 minutes, so thank you. [Recess.] Mr. Calvert. The hearing will be reconvened. First, we will recognize Ms. Pingree for her questions. ENDANGERED SPECIES ACT Ms. Pingree. Thank you very much, Mr. Chair. Thank you, Secretary Jewell. It is a pleasure to have you here before us, and I appreciate the hard work you are doing for us in so many areas. And I am glad to see some of the questions I care about and some of the issues that I wanted to talk about climate change have already been brought up. I know you are working very hard on the centennial of the national parks, and we are excited about that in Maine. I wanted to do something that probably is not always the right thing to do, but I wanted to say something in favor of the Endangered Species Act. I come from a State where we have had our challenges with it, and every once in a while I am posed with a species that I do not think should be listed or I think there are serious questions that should be asked. But I have learned over the years that there are times when it is a really important tool that we have as an indicator species, some plant or animal that lets us know that something is going dramatically wrong. And I wanted to use as my favorite example of what has happened in my State and so many others with the bald eagle. When I came to Maine as a teenager, it was almost never that you saw a bald eagle. There were 30 nesting pairs in Maine in 1967, and as you know, that was one of the first species ever to be listed. They were always in a remote part of the State. We are pretty clear that the problem had been DDT, which was kind of a miracle chemical for all kinds of other pest problems, but it turned out to be a real damaging thing for the bald eagle. It has worked. It has made a comeback. In 2007, we were very excited that the bald eagle was actually removed from the list, so it took a long time. But now there are 650 pairs of bald eagles in Maine, and we see them like we do robins. They are outside my house and other people's houses all the time, and it just a majestic species, and it has also taught us a lot about the particular pesticide. I did bring a prop. This was a bald eagle that was sitting on the ice outside my office just last week in Portland Harbor, right in Maine. So I do think there are times when it is critically important, and, of course, I have a species I am concerned about, and, again, I am not sure it will qualify for listing. It has already been accepted by the Fish and Wildlife Service, but the monarch butterfly has diminished in population dramatically. And it is one of those species that I think most of us learned about them as a kid. We watched them go from a cocoon to a butterfly, and we thought it is such a commonplace thing. It would never be gone. But as you know and so many people know, it is practically diminished and practically gone and could be gone soon, and, again, it could be an indicator species. I have heard people call it the canary in a cornfield because probably it is diminishing now because of the lack of milkweed around the country. Much of that is because of the effect of roundup and GMO ready crops and roundup ready crops that are able to resist roundup. So the excessive use of roundup has probably wiped out the milkweed, and we may see the end of the monarch butterfly. And for a lot of people, they will say, well, ``that is a silly thing, who cares.'' But the fact is I do think it is an indicator. I think it is telling us a lot of things that we needed to know about, just as the bald eagle taught us about DDT and other chemicals that were not safe for us in many other ways. So I will use that as my first question if you want to talk anymore about it. I truly understand the challenges that people often have, and the difficulties, and the time it takes for a listing, and sometimes the concerns that the chair raised that there are interest groups who decide it is a way to expand their support base. But the fact is it is still a critical tool, and if we care about our environment as well as our economy, it is something that we have to have. Secretary Jewell. Well, thank you so much, Congresswoman Pingree, for your support of the Endangered Species Act. I think it is easy to make fun of an individual species, but when you step back and you look at our greater understanding of our ecosystems, and the greater sage-grouse is a good example of that right now. So many species depend on that ecosystem although inspired by the pressure of time on one particular species, it will make a difference for 350 species. The bald eagle is a great example. The American alligator is another one, and it was mentioned in some of the opening comments. Actually this Administration has delisted more species due to recovery than any other Administration. I have it, and I will find it by the time I get around, or maybe Mike can look up how many. I do not want to quote you the wrong number. But the monarch butterfly is indeed in trouble. There still are a lot of them. But the Fish and Wildlife Service is actually working cooperatively on this one with Canada and Mexico because the migrating monarch butterfly is an extraordinary example. We are working with our public lands and Fish and Wildlife Service refuges around the country. We are working with rights-of-way with the utility industry. We are working with the Department of Transportation on road rights- of-way to plant milkweed, and then there is an effort around many communities to do the same. The monarch butterfly is one part of a broader strategy around pollinators in general, which are in real trouble. There is quite a significant amount of effort going on for pollinators, of which monarch butterflies are one. I do not know, Mike, if you have pulled up numbers regarding the pollinators. Do you have them handy? Mr. Connor. Not the specific budget investments. Secretary Jewell. Okay. But they are in there, and we certainly are working cooperatively on the monarch in specific, but on pollinators in general. Ms. Pingree. Great. Well, I appreciate that. I apologize to my colleagues who have to look at the other side of this. But just think if we had lost the bald eagle and it did not come back. Remember Benjamin Franklin wanted the turkey to be the American bird, and that would have been embarrassing. Mr. Simpson. Would the gentlelady yield for just a moment? Ms. Pingree. Absolutely. Mr. Simpson. The monarch butterfly, I have recently had several individuals ask me, the comment period ends roughly March 1st, or 2nd, or 3rd. Secretary Jewell. I do not know. I will have to find that out. Mr. Simpson. Would you be willing to extend the comment period for 60 days? Secretary Jewell. Comment period on what specifically? Mr. Simpson. On the monarch butterfly. Mr. Connor. There is a proposal for a listing. Mr. Simpson. Right. Mr. Connor. And the Service did a threshold analysis saying it deserves further review, so it has not been listed or anything. I did not know that we were in the comment period yet, so we will go back and find that out and address it. I know it is going to get further review and further public engagement, but I am not sure we have actually had the comment period initiated yet. Secretary Jewell. And 11 species were delisted due to recovery, and nine are pending delisting proposals, which is pretty good. I think there are 22 over time from recovery, but only actually two due to extinction of 2,200 species. Mr. Calvert. If the gentlelady would yield, I think a number of those delisting applications have been going on over the last number of years. Is that not correct? Secretary Jewell. The 22 over the last, for the 40 years since it has been in place, 11 since 2009, half of them. Mr. Calvert. Right, but those applications were done many, many years ago. Secretary Jewell. Oh, many years. Many years, no question about it. There was a comment that we are not working on delistings. We are working on delistings as well. Mr. Calvert. Take, for instance, the Stephens' kangaroo rat, which seem to be propagating very happily out in California. It has been frustrating that that has not been delisted. Secretary Jewell. I see. Okay. Mr. Calvert. A number of them, but that is just pointing out one. Ms. Pingree. I yield back. Mr. Calvert. Mr. Cole, you are next, but before you begin, I just want to let you all know that we are going to proceed with member questions in the order members arrived after the hearing began. And with that, Mr. Cole, you are recognized. Mr. Cole. Thank you. I thought Simpson was going to get a third round somehow there. [Laughter.] INDIAN AFFAIRS Mr. Cole. It is supposed to be the ex-chairman's prerogative. First, I want to begin by, number one, just thanking you and thank your Department. You guys have been absolutely terrific to work on Native American issues. Frankly, you have been terrific across the board in my view, but particularly in that area. And as you know, this committee on a bipartisan basis has prioritized that, even in very difficult budget times, the last 4 years we actually have done more than the President asked us to do. I am glad you upped the ante this time, particularly in the area of education. But as our chairman said, that is going to be particularly difficult because your numbers are based on, you know, taxes, and fee increases, and mandatory spending changes that are unlikely to happen in my view, and frankly are beyond our purview as a committee regardless, as much as we would hope that we can find some common ground with the Administration there. BUDGET PRIORITIES Given that, let us assume we have a flat budget again, which is, I think, the default position that it is really is the BCA. Until we get serious negotiations at a level above, you know, anybody in this room with the congressional leadership to the President level, I do not think that is going to change. So assuming that, what are your areas of priority, and, you know, where would you like us to put emphasis? We are going to have to make some touch touches again, I suspect. Secretary Jewell. You may not like my answer. Mr. Cole. Well, you told me that yesterday. [Laughter]. Secretary Jewell. I did, but I did not want to repeat that. Mr. Cole. You said if I asked you this question, I would get an answer I did not like. Secretary Jewell. Well, I think it is pretty clear that this budget moves beyond sequestration, which is exactly what we believe we should do. My first year in this job was 2013. It was a miserable start in this job when we had across-the-board cuts. It did not matter how important the work was. The staff was demoralized. We were cutting things that should never be cut like grant support costs for schools in Indian country because of sequestration. I hope upon hope that you and your colleagues will move us beyond sequestration because as a business person, it is a crazy way to run a country. This budget assumes we move beyond that. This budget does lay out our priorities. As you heard in my response to Congresswoman Lowey, it does not have all the things in there we might like. It was not actually easy on any of the bureaus to come up with these numbers, and we asked them to prioritize, and that is what we reflect here. So strong priorities around upholding our trust and treaty obligations to Native Americans, particularly education where we have been spending money and not doing a good job for these kids for many years, and we just have to change that. I cannot postpone the National Park Centennial. It is happening in 2016 whether I like it or not. I have heard from many members of Congress about we wish you were permitting our oil and gas wells faster. We wish you were moving forward quicker on our coal leasing permits. These are all things that take resources, and one of the reasons we are not as fast as we aspire to be is because our budgets have been squeezed, and we are operating with fewer people in some of these areas than we were before. No one has reduced the complexity for us in terms of what we are required to do. We are trying to reduce the complexity to the extent we can. Mike is our representative looking at what is it in our regulations we have control over that we can make smarter so it costs us less time? There are proposals out there like, for example, tribal recognition, which is a very long and laborious process for us and very expensive for tribes. We are looking at making sure that it is rigorous and difficult, but not inconsistent, taking forever, and costing millions of dollars. We think there are things we can do about that. We know there is a lot in this budget that means a lot to people, particularly, I would say, across the West. PILT we believe should be funded on a mandatory basis. I also, as you know, believe that the Land and Water Conservation Fund should be fully funded as was intended when it was passed 50 years ago. I think there are things we can work on together to address some of those things on the mandatory side. PILT combined with Secure Rural Schools and LWCF is a good way to do that. I cannot say to you that we should prioritize tribes over the National Park Centennial, or that we should hammer away anymore at the BLM budget that it already is when people want permits to drill for oil and gas on their lands. This is a budget that is not lavish. It is a budget that gets us back to doing what I think the American people expect us to do as a steward of 20 percent of the Nation's lands and as one of the primary points of contact and advocacy for Native Americans. And frankly there are things I know people care about-- droughts, floods, stream gauges, Landsat images, U.S. Geological Survey is working on induced seismicity and why is that happening in Oklahoma, all of those things. That is what is in here, and at this point our budget reflects our priorities. SEQUESTRATION Mr. Cole. And I think that is a fair answer, and I do not disagree, and I do not take offense. As a matter of fact, one of the reasons I asked the question was so you could make exactly the point that you made. But sequester is not a choice. It is the law, and it was a law that was not only signed by the President. We refer people to go read Bob Woodward's The Price of Politics. Sequester was suggested by the President as a mechanism. So if we are going to get rid of that mechanism, something I agree with you on, quite frankly, because I think far too much of the spending reductions come out of the discretionary budget. We all know the numbers. I think Chairman Rogers quoted them in an early hearing today, $165 billion less in discretionary spending than we saw in the last year of the Bush Administration. And a lot of my colleagues here sit on Defense, and we know what the consequences are there, and we are extremely concerned. But, again, this was a mechanism proposed by the President. And so far, the proposal, I will just tell you--we can debate the merits of it--is not going to happen, as envisioned by the President. There needs to be an engagement at some level, and I would say our side needs to be engaged, too. I do not want to put this off entirely on the Administration, but it is going to require presidential leadership to do that or we will be back at BCA levels. I would just state that for the record. It is not where I want to be, but I think that is exactly where we are headed unless we get some engagement. Maybe we can get a Ryan-Murray type deal again after the deal, but my guess is through the appropriations process we will appropriate at the BCA levels because I do not see a deal coming before then. So, again, I am not going to ask you. It is like asking a parent to choose between their children. I recognize that you put a lot of work and effort into this, and I broadly agree with your priorities to tell you the truth. I will say for the record, if it comes down between celebrations of national parks and Indians, I know which side I am going to be on because people trump celebrations, quite frankly. And healthcare trumps these things. Education trumps these things. And we have a unique obligation here, a trust responsibility, and a treaty responsibility on the part of the population that has probably been more neglected than any others. And I know there have been plenty of tough stories in American history, but this one is particularly sad. And it is a particular and peculiar Federal responsibility and a focus of this committee. So I just want to end with that. I have taken more time than I should have. I just want to again thank you. I want you to continue to make the point that you make that we are putting you, and others, in almost impossible situations, as managers of our resources as being in charge of these departments. But I think we are doing that, by the way, to Secretary Carter, and Secretary Burwell, and I can go through the list. They are all having to make choices they should not have to make. Unless the President is willing to put something on the table that is politically realistic--it does not have to be done publicly--then this will happen. This is where are we going because it is the law. It is not a choice of Congress. It is the law that it has to follow that, again, the President recommended and the President signed. So I am anxious that we sit down. I think we can sit down at some point and get there, but again, I do think from an Administration standpoint you can simply propose a lot of things that are based on assumptions that, politically speaking, are not going to happen. We cannot operate that way here. I wish we could. I wish we could. I wish we could take your top line and work with you on that. I suspect we would come out pretty close to the same place. But I doubt we are going to get a 302(b) allocation that reflects the number you, and I, would like to see, absent a deal well above our pay grade. With that, Mr. Chairman, I yield back. Mr. Calvert. I just want to use the discretion of the chair to say I agree with the gentleman. All three of us are chairmen of three different committees--Interior, of course, Energy and Water, and Labor. None of want to be in the situation that we are in, but we have no other recourse than to follow the law. And unless the President and others get together and work out some kind of accommodation, we will pass our 12 bills. None of us will like it, but that is what we are going to have to do because we are obligated to follow the law. And with that, I recognize---- Ms. McCollum. Mr. Chairman, on this point if I may have a moment. Mr. Calvert. Sure, Ms. McCollum. Ms. McCollum. You know, I did not vote for sequestration, but I have to work within the law as you point out. And I appreciate what my colleague, Mr. Cole said about the President being part of the discussion. But we can take the first step to end sequestration. We can take the first step as a Congress to end sequestration. And, yes, it is going to mean all parties coming together, but with one party in the majority in both bodies, I think a discussion between the Republican Senate and the Republican House to say to the President that they are open for lifting sequestration would also be something on which you could move forward. And, Mr. Chair, to that point, we do not have our allocations yet. We are having our budget meetings. Are we going to reconvene after we get our allocations again with the Secretary? Mr. Calvert. We are going through this process of oversight, meeting with the various secretaries and various committee heads and so forth. I suspect we will have a budget number some time end of March. Ms. McCollum. And for that, Mr. Simpson, I thank you for your service on the Budget Committee, sir, but---- Mr. Calvert. Me, too. I really appreciate---- Ms. McCollum. But, Mr. Chair, the point is after we get our allocations back, if we need to, are we going to reconvene with the secretaries and the agencies if what we have is less than sequestration levels? Mr. Calvert. We are going to be talking about the priorities with the various secretaries as we move along in this process. I think we have been very clear from day one that we are operating under present law. Mr. Cole. Will the gentlelady yield? Ms. McCollum. Yes, if the chairman indulges me. Mr. Calvert. Certainly, I indulge the gentlelady. Mr. Cole. He might not indulge me, but he is probably going to indulge you. [Laughter.] Just to add one other wrinkle here, and as was mentioned by my friend from Minnesota, there is another body here, the United States Senate. And they are going to have to come up with their budget, frankly something that neither of them on either side of the aisle have been particularly good at in recent years, no matter who was in the majority. They are going to have to reconcile to our budget. So we are probably mid- April minimum before we actually reach a number. And I hope in that process there is some Administration involvement because this is not going to happen absent some dialogue at some level. We need some sort of format like the Ryan-Murray mechanism that was established last time. It has to be set up, again, by folks in the Administration and in the Congress. Ms. McCollum. Thank you, Mr. Chair. Mr. Calvert. Thank you. Mr. Kilmer. TREATY RIGHTS Mr. Kilmer. Thank you, Mr. Chairman, and thank you, Secretary Jewell, for being with us. I would associate myself with the comments from Mr. Cole about the importance of our treaty and trust obligations to our tribes. Last year, you were kind enough to come out to our neck of the woods and meet with some of the tribes from our region. And at that meeting Billy Frank, the late chairman of the Northwest Indian Fisheries Commission, talked about the treaty rights at risk initiative, specifically as it pertains to the protection of salmon. I was hoping you could speak about what the Department is doing under your leadership to protect and advance the protection of treaty rights. Secretary Jewell. Well, thanks very much, Congressman Kilmer, and thanks to you we both saw Billy about 7 days before he died, so that was a gift. There is no question we are fully committed to upholding trust and treaty rights. The process of supporting those rights has resulted in the settlement of 82 outstanding trust litigation lawsuits, the largest being with the Navajo Nation north of $400 million. We want to move past some of the things our predecessors, over many years, have not done that we are obligated to do as a Nation. I think that illustrates very much a new day with tribes in this country. The President has hosted the annual White House Tribal Nations Conference 6 years in a row, his creation of the White House Council on Native American Affairs that he asked me to chair, the efforts we are making in Indian education, which is a trust responsibility, and doing that by really focusing on tribal self-determination and self-governance, recognizing now after really many years of being paternalistic that the right answers oftentimes rest with the tribes themselves if they want to step up. I think treaty rights are less at risk than they were, and I think pioneers like Billy Frank and his work with the Northwest Indian Fisheries Council, standing up, getting arrested multiple times about really the rights of the Native Americans in the Northwest, to the fisheries, was inspirational to many across this country as they stand up for their own rights. That is our positon on it, and I am very hopeful, no matter who is in the White House in years forward, that this momentum will continue and we will be really in a new chapter of our relations. CLIMATE CHANGE Mr. Kilmer. I also want to piggyback on something that Ms. McCollum asked about. In the area of Washington that I represent, a number of the tribes are dealing with the reality of changing landscapes and severe weather events. In fact, we have got three tribes that are in the process of trying to move to higher ground because of persistent floods and very severe storms. At the same time, they have very constrained resources financially and are struggling to figure out how they can get the funding so that they can protect sacred sites and have some semblance of public safety when these floods and storms hit. I was pleased to see in the President's budget a number of initiatives focused on helping tribal communities, specifically with the issue of coastal resilience. But I think this is a big deal, and I think we need to do more on this front in part because we have a treaty and trust obligation. So give us some direction. How can Congress support the need of coastal tribes that are struggling to deal with these issues and initiate projects that promote public safety and protect sacred sites? Secretary Jewell. Thank you for raising everyone's awareness on that. For those of you that had an opportunity to look at the lead story in the Washington Post today, it is exactly about this issue. It happens to be Kivalina, Alaska, but it could be the Quileute in Washington State, and many other communities that are at risk, including our Insular areas, as Congresswoman McCollum brought up earlier. We have a modest amount of money in the budget to begin to deal with sort of planning and identifying issues specific to tribal communities, $8 million in grants that we are about to put about. It's $50. Voice. It is $8 million that we are about to put out, and $50 million in '16. Secretary Jewell. Yes, so the 2016 budget has $50 million. That is really a competitive grant program to have tribes come forward and say, you know, we are here, we would like to be able to help, what are your needs and issues. I think one of the important things we have to work on is how does that money go to the tribes that need it most, not the tribes that are most effective at getting grants, because oftentimes they are not the same. That does not address the issue of potential for relocation. You know, $60 billion is what the Federal government appropriated after Hurricane Sandy. $60 billion. We do not really have a great mechanism for investing up front so that we can spend less over the long term. As we look at sea level rise and as we look at the vulnerability of our communities at a time of a changing climate, I think we need to be a little more proactive so we can invest up front as opposed to having a catastrophe. It is just a lot easier, I recognize, for people to respond to catastrophes. But there is money in the budget to continue to make progress, to understand and study what the vulnerabilities are to help us and those communities prioritize what their best next steps are. It is not a lot, but it is certainly an important step in that direction. Mr. Kilmer. Thank you. Thank you, Mr. Chair. Mr. Calvert. Thank you. Mr. Jenkins, you are recognized. STREAM PROTECTION RULE Mr. Jenkins. Thank you, Mr. Chairman. Madam Secretary, thank you for the courtesy call. How are you today? Good. As a new member, I understand the complexities of all the hats you must wear, certainly projects, programs, like the National Park Service and all. I appreciate the investment, the work in West Virginia, the national parks in my district, so thank you very much. I want to focus a little bit on the OSM and follow up most specifically on Chairman Rogers' questioning. I would agree totally with the comments that he made. Let me just kind of dive in on a couple of specifics. Number one, he referenced a study that indicated that the stream buffer zone rule would look at an effect of probably saving in the neighborhood of about 15 miles of stream. Is that an accurate number? Secretary Jewell. That is the first time I had had heard that number, so I am not sure where that came from. Mr. Jenkins. Based on the work that you all have done in the preparation of this rule, what number do you think it is? Secretary Jewell. I do not have a number. You know, this is really about the hydrology that we have learned about over the 30 years since the rule has been written, and the very dramatic impacts that mining has had on the hydrology, and trying to put a rule in place that is more consistent with what we know today. Mr. Jenkins. Okay. So basically then you are not estimating the effects and consequences in terms of stream miles of the effects of the rules that you would put into place. I think I heard you just say that you do not know what it would be. Secretary Jewell. I do not know. That is correct. Mr. Jenkins. Do you not think it is important to analyze in the rulemaking process as you contemplate different policies what the effects of those are? So we may not save any stream miles. You do not know. Secretary Jewell. I do not know. I know this. We will be coming out with an environmental impact statement that people will be able to comment on that will be very detailed. I have not read that yet. I typically would not until we are close to final because there are many more bites of the apple, if you will, in terms of comments from the public, from States, and otherwise that will be happening once the rule is put out. Mr. Jenkins. Your opening statement submitted to the committee is replete with comments about economic engines, and fair returns, and the growth of domestic energy portfolio. I come from a coal district. We have a lot of surface mines in my district. Do you anticipate the stream buffer zone rule to grow and expand surface mining activity in my State? Secretary Jewell. I do not know what its impact will be, positive or negative. That will be part of the study that comes out. I do know that from public lands largely not in your State, public lands in the Rocky Mountains that we supply about 40 percent of the Nation's coal. Mr. Jenkins. Well, the Office of Surface Mining responsible for the regulation of surface mine activities in my State, is under your jurisdiction. Secretary Jewell. That is correct. Mr. Jenkins. Okay. So, again, you have been working on this rule for some time, and I think you have indicated that you are pretty close to having this rule issued. Secretary Jewell. That is correct. Mr. Jenkins. And at this point you still do not know what this proposed rule's impact will have on surface mining activity in my State or anyplace else. Secretary Jewell. I do not know. Mike, do you have more insights into that? I have not read it yet because it has not been released. Mr. Connor. It has not been released. It will be a proposed rule. There will be a lot of public process involved in that timeframe. There will be a draft environmental impact statement that will weigh out the analyses associated with the rule. There will be economic analyses that are a part of that rule, but it will be proposed at that time. It has not even left the Department, and it is being prepared by the Office of Surface Mining. So it is very early in this process. Typically with these regulatory processes, we make lots of changes between proposed and final. I anticipate we will take lots of comments, and we will go through that analysis and that input, and we will have this dialogue as it continues over the next year to 2 years. Mr. Jenkins. But my sense is in developing the proposed rule, the modeling should have already occurred. The modeling should be conducted in order to develop at least the proposed rule, and that if you are getting ready to issue this, I would hope that the modeling would have already occurred. But what I have heard thus far is you do not know if this is going to protect one inch of extra stream. We do not know if this is going to have one positive or negative impact on surface mining in my State or anyplace else. And to me, it just seems odd that we are the top of the 9th inning, and you are here telling us you still do not know. Secretary Jewell. Let me be clear on one thing. I have had a briefing, several briefings, in the course of my time with the Office of Surface Mining. Mr. Jenkins. Can you tell me how much stream---- Secretary Jewell. That was not part of the briefing. Mr. Jenkins. Was there a briefing on the jobs impact? Secretary Jewell. There was a briefing on the economic impact. I do not recall the specifics. Mr. Jenkins. Let me ask you this. Is there a jobs impact? I was an advocate of jobs impact reviews at the State level in West Virginia. You know, we talk about environmental impacts. We talk about fiscal notes for fiscal impacts, what is the cost of government. I am a passionate believer in a jobs impact review. There are some incredibly powerful modeling tools, like the REMI model and others. Did you do a jobs impact of the stream buffer rule proposal, and what is the result of that jobs impact? Secretary Jewell. So, yes, there was definitely a jobs impact by region. I do not recall the specific numbers. Mr. Jenkins. Can you get those for me? Secretary Jewell. Absolutely. We will be happy to get those to you. Mr. Jenkins. So we do not know about the stream beds, we do not know about the coal mining activity, and we do not know, at least here today, what the jobs impact is. Secretary Jewell. Yes, the jobs impact is known, and that is part of the rulemaking, and they will be released when the study is released with the EIS. But I will talk to my team to see if we can get any of that to you in advance of that coming out. Mr. Jenkins. You talk, and, again, your comment earlier, ``our budget reflects our priorities.'' And your priorities, you have listed throughout things like climate change, and you are talking about making targeted increases to carry out that climate change agenda. And you talk about this Power+ Program and the money from the Abandoned Mine Fund. What in this budget invests in the West Virginia communities, like Chairman Rogers' from Kentucky, that have been decimated by the loss of coal jobs? We, too, are in the 8,000-, 9,000 jobs lost because of this war on coal. And so, throughout I see you keep promoting your climate change agenda, and you say that your budget reflects your priorities. I think your priority is the climate change agenda, and that you are putting money into furthering that agenda. You talk about communities and wanting to help people and help communities. It is wiping out southern West Virginia, Madam Secretary. And the rule that you are being charged with crafting is going to have a devastating impact and exacerbate the problem. What are you going to do for us? Secretary Jewell. May I respond? Mr. Calvert. Please let the gentlelady respond. Secretary Jewell. First, I want to reassure you I do not and neither does this Administration have a war on coal. I appreciate that many of the communities in Appalachia, in West Virginia, and Kentucky, and other communities are hurting. I do appreciate that. Much of the easy coal in this part of the country has been obtained, and so the economics are changing as well. I also appreciate we have had impacts from coal mining in this region. We have learned alot over the last 30 years, so we are trying to update the regulations, but certainly not undermine an important industry. We have the Power+ proposal in the President's budget. It accelerates a billion dollars from the Abandoned Mine Land Fund to put specifically into work in the communities that have been so impacted, like the ones you referenced in West Virginia and in Kentucky. Mr. Jenkins. Can I ask you one quick question? Chairman Rogers, or maybe it was another member, said that Power+ cannot be implemented under the current statutory structure in that the money from the Abandoned Mine Fund can only be used for reforestation. So is it accurate to say that the President's proposal to use money for these Power+ projects cannot occur without congressional action? Secretary Jewell. I believe that is true, and I also believe that with the funding source, I do not believe this will score. I think that there will be members of the House and Senate along with the Administration that should align on this proposal, and that will be our strong recommendation. Mr. Calvert. Mr. Joyce. Mr. Joyce. Thank you. Hello, Madam Secretary, and thank you very much for the call last week. I am sorry we did not touch base. GREAT LAKES RESTORATION INITIATIVE I just wanted to follow up on the President's 2016 budget. He requests $250 million for the Great Lakes Restoration Initiative, or the GLRI. This current Fiscal Year, the GLRI receives $300 million in appropriated funding. Given that the Department of the Interior has been the number two recipient of funds from the GLRI, how is this proposed $50 million decrease expected to impact the Department and its Agencies' work in, among other things, restoring habitat, performing invasive species research, monitoring and control, and providing technical assistance? Secretary Jewell. I am going to ask Mike to find the specifics on the GLRI because I do not want to keep scrambling through my paperwork. We believe strongly in the work that is happening in the Great Lakes. We have had a significant increase in this budget request for invasive species and, say, of one species, and that goes to the Asian carp, which is one of the greatest threats we have to the ecosystem up there. There is about a $2.4 million increase in the Fish and Wildlife Service budget, and we have got an ongoing almost $6 million in USGS, so a total of about $14 million for Asian carp specifically. That is continuing to advance the science and the ability for early detection and so on in the Great Lakes. Mr. Connor. Yes, of the $250 million that EPA has requested, we have a request for $68.2 million for the Great Lakes Restoration Initiative. Of that, we have $42.6 million in the Fish and Wildlife Service budget for coastal wetlands and national wildlife refuge activities, which is actually $2.5 million more than we had previously. In some cases we have a little bit of an increase. I do not have a delineation of the impacts of the minus $50 million that you referenced, and we can dig down a little deeper and get you that information. Secretary Jewell. Yes, that may be on the EPA side of the budget. I am not familiar with that. Mr. Joyce. But you receive a good portion of that. That is why I wanted to go through this issue because our President is from Illinois along the Great Lakes, and the GLRI is a tremendous bipartisan initiative. Last year he proposed funding it at $275 million, and this year he proposed funding it at $250 million. That number keeps decreasing, and the number should be set a lot higher than that, because of the bipartisan nature. The GLRI is currently funded at $300 million, and we are hoping to continue that success, and you will be a recipient of that. We are fighting for you. The GLRI has provided approximately $1.96 billion toward restoration efforts since its initial year of funding in FY 2010. As of August 2014, it has spent $1.23 billion on 2,214 projects in the Great Lakes ecosystem. GLRI funding had led to the de-listing of three areas of concerns: Presque Isle Bay, in Pennsylvania, Deer Lake in Michigan, and White Lake in Michigan. The funding has also been used to complete all necessary remediation and restoration activities at three areas of concern in 2014, one of which is the Ashtabula River in Ohio. I was there on the day it was being de-listed. This is the final step before this legacy pollution area can be delisted entirely. Given, Madam Secretary, the progress made in completing all of the necessary remediation and restoration actions, I request that you advise as to what support will the Department of the Interior and its services, such as the Fish and Wildlife Service, as part of the Great Lakes Interagency Task Force provide to Ashtabula and the surrounding watershed should the area of concern be fully delisted. What post area of concern support will be provided to these communities? Secretary Jewell. I will give you a quick answer, and if you want more detail, I will get somebody that has got a little more detail to go through that with you. We will continue to work on these resources, even if they are no longer listed as areas of concern, so there is an example here. USGS has been the science lead for siting constructed fish spawning reefs in rivers feeding the Great Lakes, and evaluating their contribution to the restoration of iconic species, like the walleye and the lake sturgeon. Spawning reefs are an important contribution to de-listing the areas of concern, a centerpiece of the GLRI. We have delisted them because of activities that have worked. We are going to continue those activities there. We are going to take this learning into other areas, and hopefully address the long- term needs of the Great Lakes. There are lots--mussels, Asian carp, mercury accumulation, challenges in the wild rice harvest which I have heard about from native tribes up in that area. There is work in every one of those dimensions as part of this in our Department. ASIAN CARP Mr. Joyce. One last question if I could. The funding numbers from 2009 to 2013 show that more than half a million dollars went toward efforts to prevent the spread of Asian carp between the Ohio River and the Great Lakes basins. Moving forward, what is the timeline for establishing an entity similar to the Asian Carp Regional Coordinating Committee for the Ohio River Basin? What levels of support, both financial and technical; resources are planned for the Ohio River Basin Asian carp efforts in the 2016 budget? Secretary Jewell. I do not think we have that kind of specificity, do we, Mike? Do you know? Mr. Connor. I think we have our overall program numbers with respect to Asian carp investments in science and control and monitoring between the USGS and the Fish and Wildlife Service. That is the $14 million overall, of which about $6 million is for USGS, and the balance is for Fish and Wildlife Service. But I do not have it broken down into the Ohio section of that. I think we can get you those details. Secretary Jewell. Yes, we can have the Fish and Wildlife Service get back to you. I do not know about what---- [The information follows:] Asian Carp The funding proposed for Asian carp work in the Great Lakes is allocated to specific projects during the year of execution, 2016. Mr. Joyce. The Fish & Wildlife service has been very good about cooperating. Secretary Jewell. Okay, great. Mr. Joyce. I am not trying to put you on the spot. We just need help. And I yield back. Mr. Calvert. Thank you. Mr. Stewart. Mr. Stewart. Thank you, Madam Secretary. Again, I appreciate, like other members, the call. We had the opportunity to talk last week. I suspect you may not look forward to these hearings as much as we look forward to them. [Laughter]. Secretary Jewell. I thought you were going to say as much like hiking in Utah, for example. Mr. Stewart. Yes. It is a tough job. I mean, all politics are local, and this is particularly true of this committee. Most of us represent some interest that is very important to our State, our district, in some cases, and I imagine you feel like you get grilled. We have Secretary Kerry upstairs, which we are kind of bouncing back and forth. This hearing is harder for you so far than his hearing has been for him because of that one reason, because of that intense local interest. But they do have some important projects to my district that I would like to talk about in my State. PRARIE DOG I would like to start out with some good news, and congratulate you and thank you, if I could. And that is we have had real success in a local ESA issue, the prairie dog in Utah. Neil Kornze and Dan Ashe have been good to work with us. We have made more progress in 8 months than we have made in 20 years, and we hope to have a conclusion to that, and we are grateful for the consolidated effort that we have had in moving that forward. WILD HORSES I would like to mention just very quickly that we look forward to the same kind of success with the wild horses issues. It is a huge deal. I mean, they are doubling every 4 to 5 years. You know that. If you love these animals like I do, and I will bet you do. I grew up on a farm and ranching, and you see the health of these herds. It is not good for the animals, and it is not good for the environment or the range. And we believe that we have to have a much more aggressive approach to that than what we have seen so far, and we would encourage you to look at that, if you would, please. A 10- to 12-year plan just simply will not work when these horse herds are doubling every 4 to 5 years. JUAN PALMA And the last thing as far as good news, and that is to thank you for the State director there, Juan Palma, who has recently retired, he has been excellent. He understands the people, the culture. He understands the issues. And I hope that your replacement for him will be nearly as good because he has been a real advocate that we felt like we could work with. So now, the bad news, if you would. Secretary Jewell. Keep going. [Laughter]. BLM LAW ENFORCEMENT Mr. Stewart. Good news and bad news. And I will mention these quickly and ask you to respond. I know some of them you may be able to, maybe not. One of them is a real concern for us, and that is BLM law enforcement, and some strife that we have with local personnel, especially the State director. He does not answer--I am sorry, the State law enforcement director, who has no accountability to the State BLM director. And I will just tell you he has lost the trust of local law enforcement. He has lost the trust of community leaders and of communities in general, and I do not know how you fix that. I just think we have to make a change. I do not know if you are aware of this before, and I do not want to go into it any more than this. But we would ask you to look at that if you have not. Are you familiar with this issue there? Secretary Jewell. I am familiar, and I will say that I am not going to get into personnel matters here. Mr. Stewart. I understand, yes. Secretary Jewell. But, yes, I am familiar. ENERGY DEVELOPMENT Mr. Stewart. Okay, thank you. And, again, we would ask for your consideration on that. The second thing would be a problem we have with energy development, which I know it is not the first time it has come up in this hearing. We have specific examples: coal mines in my district in the State, as well as some oil and gas. But the problem we see is that they will go through the EIS or the NEPA process. They will make good progress. As I said, we have a good team and a good coalition between those teams on the State level. But then it comes to Washington, and it gets sucked into this big black hole where we hear very little from it after that. There is very little progress. As an example, there has been a supplemental draft EIS that has been here in D.C. for more than a year, which is far too long. This is 350 jobs in a rural part of the State. That 350 jobs has an enormous impact. I mean, it would be like 100,000 jobs here in the District. And I would just ask for your support and commitment to try to expedite some of those activities, particularly with the Alton coal mine. Secretary Jewell. Okay. Mr. Stewart. And, again, I will not ask you to respond, Madam Secretary. It is just you know way down on your radar, but your help would be greatly appreciated on that. And the final comment on that, we are not asking for any special consideration. We are not asking for any exclusions. We are just asking for the process as it is outlined by regulations and by law to work, and right now it is not. It is going much, much more slower, and much less responsive than I think that you or anyone else would find adequate. CENTRAL UTAH PROJECT And the last thing and then I will be finished, Mr. Chairman, and that is essentially the Utah water project. The Federal government actually owes my State $48 million. The funding on this got cut from $36 million a year to $6 million, which allows us to do nothing other than just to keep the contractors on hold. Do you know why this funding was cut so dramatically for the State of Utah for this project, and can we hope that that will be replaced in the next year? Secretary Jewell. I am going to let Mike answer that last question first, and I would like to make a quick comment on some of the other stuff if that is all right? Mr. Stewart. Yes, please. Secretary Jewell [continuing]. Because Mike has been very intimately familiar with CUPCA. Mr. Connor. When we had CUPCA in the budget around 2012, 2013, we really ratcheted back on the Central Utah Project under the theory that projects we were paying for and getting repayment from or where we were cost sharing a certain percentage of the costs, and local entities were coming up with the balance, were a lower priority than other obligations we had. I think you may remember we cut back to, I think, $3 and a half million a couple of years ago. Since that time, that has sparked. We are trying to build that back up because I think there were some very productive discussions with the conservancy district out there. I think if we could complete the Utah Lake system, that triggers repayment to the Federal government. I think it makes financial sense for us to do that, and then work out a new cost-sharing strategy. I think we have been in good discussions. It is something I want to continue to work on during the next couple of years because I think it makes sense for everybody if we can bump back some funding. Mr. Stewart. And if I could just reiterate that because that is absolutely true. You took my words exactly. This is in everyone's interest to have this project complete. The Federal government, the State repays this substantial amount of money. We are all interested in conserving water especially in the West, especially now under drought conditions. There are positive environmental outcomes that comes from this as well. But we cannot do it with the funding that is provided in the last few years. Mr. Connor. Yes. Mr. Stewart. And, Madam Secretary, did you want to respond to some other---- ENERGY DEVELOPMENT Secretary Jewell. Yes, just quickly. On the energy development side, because you got this to us in advance, we did a little bit of background research. This may not be a satisfactory answer to you. Mr. Stewart. I will just stop you there then and turn my time back over to the chair. Secretary Jewell. Well, no, let me just say, in the Alton coal situation, because we have got a massive effort right now that we are undertaking around the greater sage-grouse, they need to do a review of how that mine impacts sage-grouse habitat. That is not normal, you know. This is an unprecedented effort, and we have all these BLM plans that are undergoing EIS right now, and we just need to cross check those, too. So that is what happening there. JUAN PALMA On Juan Palma, he is fantastic. I cannot say we can replace him, but we are sure as heck going to try. But we have a lot of people retiring with a lot of experience, and it is one of the biggest risks that we have frankly. Mr. Stewart. Yes. Well, I know you will miss him. And just in conclusion with the sage-grouse and the coal mine, what we would ask for as a minimum is just some predictability because it seems to us that the process is excruciatingly slow, and that things change mid-stream. We are told X, and 6 months we are told Y, and then we are told Z, and that is very frustrating for everyone, I think. Secretary Jewell. I get that, and I think that we are very much in a different place right now than we have been in this process through a huge amount of hard work on the part of the States, and my team, and BLM, and the Fish and Wildlife Service. Hopefully that will be in the past. Mr. Stewart. Thank you, Madam Secretary. Secretary Jewell. Thank you. Mr. Calvert. Mr. Amodei. Mr. Amodei. Thanks, Mr. Chairman. Madam Secretary, thank you for your reaching out. I also want to say a few months ago I would have thought maybe in speaking like Mr. Stewart did, this might be more fun for us than you. And I am thinking it is probably not much fun for anybody. WILDLAND FIRE But I want to thank you for your leadership. You say why is this guy saying that? And, you know, we have been working on this issue since I got here, which seems like about 41 years ago instead of 41 months ago. And, you know, things have started in the intermountain West where you sit there and you take the facts. And I kind of want to go on the things change mentality where you take the facts, and go, wow, Secretarial order. It talks about the importance of suppression. It talks about the order of fuels management. It talks about the importance of habitat restoration. And I am thinking, that is pretty good. Head person at the Department of Interior. Yay, thank you from Nevada. And you say, why is that? Because Nevada is a State, as you well know--you indicated in your testimony yesterday--87 percent owned by the Federal government, not all by the Department of Interior, but a lot of it. And you say, why do we have a habitat problem? We have a habitat problem because our indication from the BLM is that we have burned between six to seven million acres in the last 20 years, not that it's anybody's fault, but that is just the fact. That is a lot of acreage. You start out with 56 million, and we have burned six or seven million. And so, you sit there and go, we got to address fire. And so, you have done that, and I appreciate that. But when Chris talks about things changing, we sit there, and Neil the Director of BLM and his folks are modifying their Resource Management plans and all, great. But I am sitting here going, the number one threat, and I do not think there is much argument about it, is catastrophic wildland fire. And so, when I sit there and I look at things like we have to limit or prohibit surface disturbance, and the map focuses on these three million acres, I sit there and go, so we ask BLM, how many acres have those district managers and those Forest Service district rangers permitted for anything in the last 20 years? A couple hundred thousand, mining, recreation, etc. And I go, okay, that is well and good. But when I look at those threats and I see Director Ashe's people going we need to exclude this from these three million acres, I go, you know what? If that would solve the problem, if that would stop the lightning from striking, if that would stop the moisture from being low, if that would stop the wind from blowing, then let's do that. But I try to connect the dots on that stuff, and I go absolutely you should manage those manmade things. But the primary thing, if I am saving priority habitat is I need stop the primary threat first. Thank you for acknowledging and concentrating on that. So my first question is, do you have any influence with the folks at Fish and Wildlife Service in terms of secretarial order? Before you answer, guess what Exhibit A is going to be when I talk to Dan? Hey, Dan, that Sally person that is a few floors above you seems to think that fire is pretty important, and she is talking about restoration, and she is talking about fuels management. And the reason that is important is because nobody wants to continue to lose habitat, and that is going to stop the major source of habitat fragmentation. And so, when you deal with that directly, I think that is a pretty strong fact for those guys in Fish to go, you are right. And I like your word ``unprecedented.'' So how is communications going with Fish on fire? Secretary Jewell. Communications are great with Fish on fire. Mr. Amodei. Good. Secretary Jewell. We need strong State plans. We need strong Federal plans. The Federal plan is a higher need in Nevada than it is in Montana just, you know, based on the land distribution. We have big issues with fire in Nevada, in Oregon, in Idaho, and I have seen that on the landscapes. We have different issues in Wyoming. What we are trying to do collectively in support of what the Fish and Wildlife Service needs is to feel confident the habitat will be okay for the species is certainty. My secretarial order gives them certainty we are prioritizing our resources on rangeland fire so they can say this is in writing, there has been action, and we can rely on that. When the Governors of the States issue executive orders, as has happened in a number of States, the Fish and Wildlife Service will look at those executive orders. If they are written in the way we hope they are, we are working closely together with the States, they can say, all right, there is an executive order in place. We can count that. It will also say when you look at the historic range of the sage grouse and you look at the current range, the biggest challenge is habitat fragmentation. There is a lot less habitat than there used to be, and the habitat that remains that is strong so it has not yet been burned is really important to maintain. That is where the surface disturbance issues come in. If there is strong critical habitat right now, we do not want to disturb that by fire or by development, so we want to work with those critical areas and the States to say, how does that align with where the minerals are, for example, or not? Are there places that we can direct development where there is less impact? And this is really landscape level on the grandest scale that has probably ever been done in the United States, and there has been excellent cooperation in the States. Mr. Amodei. And I would agree, and I appreciate that. I think the point that I would like to make in closing is this. I think your BLM district manager and your Forest Service rangers historically have done a pretty good job. We have almost no sheep left. Cows are down 20 percent for reasons that are not really much to do with you folks, other stuff. But when we sit there and you hear about things from other districts about things change, and it is like, listen, there has been a lot of money spent in Nevada on mapping. That is a good thing. We need to know where the resources are. So when you go from COT to Fish and Wildlife to coates, and then a map comes out with three million acres that is kind of on the Idaho-Oregon-Nevada border, this three million acres is critical. You are like, listen, I do not know whether it is or it is not, but it is a little late in the process to be going to a new map that is offered by Fish when the State spent $800,000 to create their own. So, now to Dan's credit, in the meeting we had a little while ago he says, hey, we are coates. But when you look at non-Federal habitat, a bunch of stuff has come up in the last 90 days where you are going where has this data been for the last 3 years? So I would just ask that you continue to show leadership and allow everything to be on the table, but we have to show some leadership in terms of where the threats are, and be transparent in our processes in terms of where something comes up. Thank you for your access and for the access of your staff. It has helped us to try to focus on the facts, and we look forward to working with you. Mr. Calvert. I thank the gentleman. Mr. Simpson has a quick question for you. BUREAU OF INDIAN EDUCATION SCHOOLS Mr. Simpson. I just have a quick question. And, first of all, thanks for coming out to Hopi Navajo land with us and for your staff for coming out. It was very educational for all of us that were there. And thanks for the budget that you put in Indian education. It is very important to this committee. A recent newspaper editorial in the Minneapolis Star Tribune stated that while the President's Fiscal Year 2016 budget requests additional resources for school construction, it would still take an estimated 30 years to replace all BIE schools that need rebuilding. Why did the Administration not request enough money, and is that true? Secretary Jewell. You want to pile on with the same question? Ms. McCollum. My new brother from Minnesota. [Laughter]. Secretary Jewell. Yes, your new brother from Minnesota. Mr. Simpson. I just believe everything that comes out of Minnesota. Secretary Jewell. The Minneapolis Star Tribune did all of us a service by shining a national spotlight on this issue that the committee is well aware of. The short answer is it makes progress, continued progress, but it is nowhere near what we need to do to fix this problem. I look forward to working with you on a longer-term solution that gets the kind of money in the budget, and more creativity on how we might go about using different sources to address these challenges we have with schools. We do have money to build the remaining schools on the 2004 list. We are in the process of coming out with a final criteria on how to prioritize the remaining schools, and we will make progress on planning for the top ones on the list with this budget. But this is really a drop in the bucket compared to the bigger problem, and we are going to need to work with you on a longer-term solution. Mr. Simpson. Thank you, and thank you for the efforts and support you have done on wildfire fighting. It is very important to us. And also the link to try and fund LWCF and PILT is very important. So thanks for the job that you do and your staff. They do a great job. Thanks. Mr. Calvert. Ms. McCollum, any parting comments? Ms. McCollum. Just thank you very much to you, Madam Secretary, Deputy Secretary, and the staff for all the preparation and outreach you did on the meeting. Mr. Chairman, I will be submitting a question for the record on inspection fees because I want to understand more on how oil and gas inspection fees can protect the environment and keep us from having a potential disaster, which would set everything backwards. So, Mr. Chair, with that, I will be submitting that to the record, and I thank you for your courtesy. Mr. Calvert. I thank the gentlelady, and I am sure there will be a number of questions that will be submitted for the record. And so, we will be getting that from members for the Secretary to answer. Given votes and your schedule, we are going to adjourn the hearing. Before we do, I want to mention that members will have additional questions, as I mentioned earlier, and they will submit those for the record. Mr. Calvert. We thank you for your time and your courtesy. This hearing is adjourned. Secretary Jewell. Thank you. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Thursday, February 26, 2015. ENVIRONMENTAL PROTECTION AGENCY WITNESSES GINA McCARTHY, ADMINISTRATOR, ENVIRONMENTAL PROTECTION AGENCY DAVID BLOOM, ACTING CHIEF FINANCIAL OFFICER, ENVIRONMENTAL PROTECTION AGENCY Opening Remarks of Chairman Calvert Mr. Calvert. Good afternoon and welcome to the fiscal 2016 budget hearing for the Environmental Protection Agency. Before we begin I just wanted to let everyone know that we are expecting votes at some time. I do not know when. So I hope we can get through the opening statements before then and I hope that there are only two votes, so we will just have a short recess and come right back. I would like to thank everyone in advance for their patience. Good afternoon and welcome to the fiscal year 2016 budget hearing for the Environmental Protection Agency. Today we are joined by Administrator Gina McCarthy and Acting Chief Financial Officer David Bloom to discuss the President's proposal for EPA's FY 2016 budget. Welcome to the both of you. Last year, the President proposed a budget that operated within the boundaries of the bipartisan Ryan-Murray Budget Agreement that established how much the Federal government could spend. That budget proposal offered some choices which we agreed with and many others which we did not agree with. This year, the President sent a budget to Congress that substantially increases both the national debt and the deficit, and fails to balance. Also with this year's budget the administration has shown a willful ignorance for existing spending caps by proposing to spend $74 billion more than what current law allows. It is out of bounds and it offers unrealistic expectations for discretionary spending. Therefore, I suspect that a policy discussion will dominate today's hearing given that there is little merit in discussing the agency's proposed budget in depth. EPA's budget request is $700 million more higher than it was last year. I am skeptical that the agency needs $700 million more than last year's request, but there is an additional $74 billion in the President's budget, so it had to be spent somewhere. If enacted, this would be EPA's third highest budget ever, falling behind fiscal years 2010 and 2011, and we have no interest in returning to those spending levels. The agency is proposing to hire more lawyers to work on more rules in what would be the largest regulatory budget ever. Meanwhile, the budget again proposes cuts for water infrastructure and Great Lakes funding. Further, the budget again proposes to cut diesel emission reduction grants despite the fact that only 30 percent of trucks and other heavy-duty vehicles have transitioned to cleaner technologies. We need to follow the science and increase funding for the DERA Program to accelerate the replacement of older engines with newer, cleaner engines. So for a multitude of reasons, the President's budget is not a serious proposal. It cuts bipartisan programs in order to fund a partisan agenda. Thankfully, Congress will have the final say. Turning to policy, you may recall that we had a lengthy debate last year about the proposed Waters of the U.S. Rule, which I believed helped alert the general public to several critically flawed assumptions and proposals within the rule. That debate has intensified, to say the least, throughout the past year, prompting more than one million public comments on the proposed rule and congressional direction to EPA and the Corps of Engineers in the fiscal year 2015 Omnibus to withdraw the interpretive rule. Also, debate has continued on the greenhouse gas power plant rules, prompting some serious questions about whether EPA has the legal authority to embark on what had been proposed, and those legal questions remain unresolved. When the President directed your agency in June 2013 to propose a rule to regulate greenhouse gases from existing power plants by June 1, 2014, then it is clear that the White House has little interest in how the rule is structured, what the rule says, or the impacts the rule has on American jobs. The White House is more interested in circulating a regulation on a timeframe that is convenient for a term-limited administration. Similarly, when the White House directs you to finalize a regulation by June 1, 2015, then I question whether the administration has any interest in giving you the time you need to incorporate what the States and public have to say. The White House has locked your agency into an arbitrary deadline in order to lock the rest of the country into yet another bad decision on its watch. Just last month, the agency indicated that more time was needed to review more than one million comments on the greenhouse gas rule. And shortly thereafter, some groups criticized EPA for stalling. The June 1st deadline is a manufactured deadline. The agency is trying to do too much too fast and the consequences will be too costly. So we disagree in the strongest possible terms with the agenda this administration has adopted for your regulatory programs. This anti-jobs, pro-regulatory scheme has forced the agency to set aside day-to-day permitting operations consistent with your statutory responsibilities in order to pursue a grossly unpopular agenda that, if implemented, would be devastating to our national economy. You have a tough job, Administrator McCarthy, and I know you are going to have to defend the indefensible here today. We all want clean air and clean water and a strong, robust economy. It is not a Republican or Democratic issue, and I know that is something you have often said. We both want a healthy environment and job creation, and we just disagree on the best way to achieve those outcomes, but it starts by living within our means. The people I represent in California have to live on a budget that reflects what they can afford and so, too, does the Federal government. Now, I know all the Members are interested in discussing various issues with you today, so I will save additional remarks for the period following your testimony. I am pleased now to yield to my friend and our distinguished Ranking Member, Ms. McCollum. Opening Remarks of Ms. McCollum Ms. McCollum. Thank you very much, Mr. Chairman. And I join you in welcoming Administrator McCarthy to the subcommittee this afternoon. The Environmental Protection Agency has a vital and important mission: protecting human health and the health of our environment. And that means clean air and clean water for our families and for our children. The EPA does not exist to kill jobs. Rather, the EPA plays a critical role in our economy. The EPA does this by leveling the playing field, ensuring that honest, hardworking men and women and their families do not have their lives or livelihoods put at risk by unscrupulous polluters. It also provides clear and consistent regulation to tackle complex issues across State and national borders. In 1990, Congress amended the Clean Air Act so that the EPA could address acid rain, urban air pollution, and toxic air commissions. Through a coordinated effort with industry, State, and local governments, the EPA has made substantial progress in all of these areas. Nationwide air quality has improved significantly and there has been a dramatic reduction in the effects of acid rains in our community. The EPA succeeded in addressing some of this country's most intractable environmental challenges and now it must turn its attention to the most pressing environmental crisis of our generation: climate change. The effects of climate change are real and they are being felt by Americans every day. According to NASA, climate change is causing drought, increasing forest fire frequency in the west and flooding in the Midwest, and declining water supplies in the Southeast. In fact we are spending more and more money in other parts of the Interior bill to cope with the devastating effects of climate change. Since 2013, fire costs have risen in the Interior bill by $1.5 billion. In addition to that, in fiscal years 2013 and 2014, we also had to provide over $1 billion to repay fire costs in previous years because the fire outpaced the appropriated amounts. It's raging wildly. It makes no sense for us to shortchange the EPA or the funds necessary to address the challenges of climate change when a strong Interior budget depends upon reducing the disastrous impacts of climate change. The President's fiscal year 2016 budget requests $8.59 billion for the EPA. That amount is $451 million above fiscal year 2015. Administrator McCarthy, it is very encouraging for me that this is the first time that the EPA is requesting an increase in its appropriation. With the way that the EPA has been targeted for cuts over the past decade, this increase, in my opinion, is desperately needed. Adjusting for inflation, even the requested increase would still put the agency almost $1 billion below its funding level in 2005. I want to say that again. Adjusting for inflation, we're now $1 billion below 2005 funding levels in 2015, a lost decade. The EPA has been significantly constrained by sequestration and has weathered furloughs and significant workforce reductions. Currently the EPA staff is at historic lows, equalling those of the 1980s. The EPA's proposed budget increases in other areas are for important investments, dedicating $85 million to addressing the threat from climate change and providing an additional $105 million for grants to states and tribes, so that they can implement their own environmental programs. I'm particularly pleased to see an additional $30 million has been proposed for brownfields redevelopment. This funding provides an opportunity for communities to clean up pollution and toxins in their neighborhoods and put brownfield sites back into productive use and create jobs. Conversely, I am concerned though that the administration is backing off its commitment to the Great Lakes by proposing a $50 million cut from the Great Lakes Restorative Initiative. The Great Lakes Restorative Initiative has made measurable strides in protecting and restoring the Great Lakes' ecosystem. As a result of this funding, approximately 100,000 acres of habitat have been protected or restored. Twenty-one Beneficial Use Impairments have been removed, which is almost triple the number removed in the preceding two decades. President Obama's pledged $5 billion for the Great Lakes Initiative during his time in office--however, I would point out, just under $2 billion has been appropriated. So we're far from achieving the President's target. Much work remains to be done. So I'm very concerned about the proposed cut. This program is one of the few EPA programs that enjoys great bipartisan support. So I look forward to working with the chairman to resolve these cuts. Mr. Chairman, I thank you for the hearing today. I look forward to working with you, to do our part in tackling our nation's most pressing environmental needs. And with that, Sir, I yield back. Mr. Calvert. I thank the ranking member and we're pleased to announce our chairman of the full Appropriations Committee, Chairman Rogers is here with us today. Thank him for taking time to be here. Chairman Would you like to make any opening remarks? Opening Remarks of Chairman Rogers Chairman Rogers. I would Mr. Chairman. Thank you very much and thanks for doing a great job of chairing this important subcommittee. The Environmental Protection Agency was created for the purpose of protecting human health and the environment by writing and enforcing regulations based on laws passed by the Congress. States like Kentucky have benefited from a number of partnerships with EPA over the years. For example, your agency has provided much needed grants aimed at preventing radon related lung cancer in Eastern Kentucky. You've also worked collaboratively with the Kentucky Rural Water Association to ensure the cleanliness of our drinking water and upgrade waste water systems. My constituents and I have been supportive of these programs and our partnership in these efforts for years, and we'd like to see them continue. However, the EPA also has the ability to regulate a broad swathe of economic activity in this country, from mining, to drilling, to farming. Each of these industries is fighting every day to manage the onslaught of federal regulations promulgated by the EPA. These industries are critical to the national economy. This is why I found myself year after year, having to take deliberate steps to protect these industries and their jobs from the draconian actions the EPA has carried out. The activities that you regulate sustain thousands of families and communities across the country. So it's important that we get things right here in Washington. That starts with setting the right priorities in the budget. Despite the fact that Congress, on a bipartisan basis, has reduced your budget request for five consecutive years, the fiscal year 2016 request we're considering today, if enacted, would be the third largest in EPA history. And if that wasn't enough, the budget request also includes $4 billion in new mandatory spending, to implement the greenhouse gas regulations that are shuttering power plants all over the country and causing coal mines to close. Any proposal involving mandatory spending programs, as you know, requires legislative action, outside of this committee's jurisdiction. And you know as do I, that that's not a real proposal until it's authorized. As I've expressed to you many times, I continue to be disappointed with the way this agency approaches its regulatory mission. I simply cannot accept a 6 percent increase in your funding, when by all accounts the EPA is still working hard to eliminate more steady, well paying jobs in the coal industry. This administration's attack on coal country has left 9000 miners jobless, just since the president took office. And while it's refreshing to see the administration take ownership of these devastating losses in coal country through its so-called Power Plus Plan, the president is missing the point. For centuries this country has run on coal. Businesses large and small rely on cheap, reliable energy to remain competitive in the world and at home. Drawn out rule making processes and bureaucratic overreach, create uncertainty that will inevitably raise energy costs and threaten American jobs. Not to mention the threat of brownouts and blackouts in the power of America's grid. For the life of me, I can't understand why you continue to wage this war, despite the outcry from Congress and the American people, in the name of climate change, global warming. I remind you that just this past week in my district in the middle south of the country, we had two consecutive nights of 17 below zero with a foot and a half of snow on the ground. It has been there for a month or more. Global warming? Not only is EPA appending the permitting process for new applicants. The agency is now retroactively denying permits that the Corps of Engineers had already approved years before. How can an American business operate in that kind of an environment? Knowing that this agency could shut down their operation despite their adherence to regulatory requirements? That comes on top of looming proposals to shut down coal fired power plants by creating standards that can only be met by employing technology that's not yet available. It's impossible. Now we have before us your budget request calling for the largest regulatory budget ever for your agency, so it can continue to carry out these wrong headed policies. I'm even more concerned about your efforts to redefine, ``waters of the US.'' And expand your regulatory jurisdiction over thousands of streams and tributaries across the country. Since your agency proposed this new rule around this time last year, you've received almost one million comments on that subject. These comments are from cities, states, businesses, coal miners, utility providers, farmers, countless other industries, all concerned about the potential impact of this rule on their livelihood. Assistant Secretary of the Army for Public Works, Jo-Ellen Darcy testified here two weeks ago that the overwhelming majority of these comments were made in opposition to your proposal. Roughly 60 percent in fact. A large part of this criticism stems from the level of uncertainty that this proposed rule has generated. Supposedly this proposal was issued to clarify jurisdictional boundaries for property owners and governing bodies. In reality it's done just the exact opposite. This committee has been consistently asking for more clarity on some of the terms utilized in the proposal, such as ``tributary, ephemeral stream,'' but we haven't got that yet. And that's all important. We just continue to hear promises from your agency that answers are forthcoming. That you'll get them to us. Well, our employers in the country can't do business with this kind of uncertainty. Employees in the mining industry certainly can't get peace of mind as jobs continue to disappear all around them due to this agency's policies. These topics are critical to the survival of thousands of families throughout the area that I represent and all of Appalachia and other energy producing regions across the country. I look forward to hearing your testimony and hearing how you plan to work with the states and with employers in the country to get our energy economy moving again. Thank you. Mr. Calvert. Thank you Mr. Chairman and thank you again Administrator McCarthy for being here to testify today. Please share with us your thoughts regarding EPA's proposed budget for its fiscal year 2016. Opening Remarks of Administrator McCarthy Ms. McCarthy. Thank you Chairman Calvert, ranking member McCollum and members of the committee. I appreciate the opportunity to appear before you to discuss the Environmental Protection Agency's proposed fiscal year 2016 budget, and I'm joined by the agency's acting Chief Financial Officer David Bloom. The EPA budget of $8.592 billion in discretionary funding for the 2016 fiscal year provides the resources that are vital to protecting human health and the environment, while building a solid path for a sustainable economic growth. Since 1970 when Environmental Protection Agency was founded, we have seen over and over again that a safe environment and a strong economy go hand in hand. This budget supports essential work to address climate change, improve air quality, protect our water, safeguard the public from toxic chemicals, support community's environmental health, maintain core enforcement strength, support needed research and work towards a sustainable future for all Americans. Effective environmental protection is a joint effort of the EPA, states and our tribal partners. We're setting a high bar for continuing our partnership efforts in looking for opportunities for closer collaboration in targeted joint planning and government processes through efforts like e-enterprise governance approach. That's why the largest part of our budget, $3.6 billion or 42 percent, is provided directly to our state and tribal partners. The fiscal year 2016 request includes an increase of $108 million for state and tribal categorical grants. This budget request, $1.1 billion to address climate change and to improve air quality. Those resources will help those most vulnerable to climate impacts and the harmful health effects of air pollution through common sense standards, guidelines, as well as partnership programs. Climate change is not just an environmental challenge. It's a threat to public health, our domestic and global economy and our national and international security. The request supports the president's Climate Action Plan and in particular, the Clean Power Plan, which establishes carbon pollution standards for power plants. In addition, the president's budget calls for a $4 billion Clean Power State Incentive Fund to support state efforts to accelerate carbon pollution reductions in the power sector. Protection the nation's waters remains a top priority for the EPA. In fiscal year '16, we will finalize and support the implementation of the clean water rule, which will clarity types of waters covered under the Clean Water Act and foster more certain and efficient business decisions to protect the nation's waters. Recognizing the need for water infrastructure, the SRF's and related efforts are funded at over $2.3 billion, and we will work with our partners to help communities by focusing on issues such as financial planning for future public investment infrastructure investments and expanded efforts with states to identify financing opportunities for resilient drinking water, waste water and storm water infrastructure. Last month the agency's a Water Infrastructure and Resiliency Finance Center, a key component of our expanded effort. We are proposing a multifaceted effort to help our communities, including low income neighborhoods, rural communities and communities of color. This includes targeting funding in on the ground community assistance through EPA's regional coordinators in a network of circuit riders. An investment of $16.2 million will help local communities improve safety and security at chemical facilities and to prevent and prepare for oil spills. These efforts represent a shared commitment, among those with a stake in chemical facility safety and security, ranging from facility owners to our first responders. The fiscal year 2016 budget request will let us continue to make a real and visible difference for communities every day. It will give us a foundation to improve infrastructure across the country, and it will sustain state tribal and federal environmental efforts across all our programs. With this budget, the president is not only sending a clear signal about the resources EPA needs to work effectively and efficiently with states and tribes to protect public health and the environment, it is also part of an overall federal budget proposal that does not accept the bad public policy embodied in sequestration and does not hold back needed resources in non- defence spending in order to increase needed defence spending or vice-versa. Instead the president's proposed fiscal year 2016 budget finds a path forward to avoid sequestration and properly support both domestic and national security interests. Mr. Chairman, I thank you for the opportunity to testify, and I look forward to answering your questions. [The statement of Gina McCarthy follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Calvert. Thank you for your testimony. First we're going to recognize the chairman of the full committee, Mr. Rogers. CLEAN AIR AND CLEAN WATER RULES Chairman Rogers. Thank you Mr. Chairman. Let me talk to you a bit about the Waters of the US proposed rule. EPA has been driving the ship on this effort with the Corps to redefine Waters of the U.S. under the Clean Water Act. That new rule would constitute the largest increase of federal jurisdiction over our country's public and private water ways in history, even allowing federal regulators to police so-called seasonal or rain dependent streams. In the omnibus bill that we are operating under now, we included a bipartisan provision requiring the Corps and EPA to withdraw certain portions related to agriculture. And just yesterday our colleagues in another house committee had some very strong words about the onslaught of federal regulations coming from EPA and other agencies that constrain how we mine coal in this country, how we burn coal, even how we will export coal to developing nations in desperate need of affordable, reliable energy options. Obviously, many have concerns that you're circumventing Congress's clear opposition to these extreme environmental regulations, and considering that your budget request includes millions of additional dollars for lawyers to defend and litigate these rules, I think it's fair to assume from that that you're also concerned about their legality. Despite these concerns and despite the strong criticism from Congress and the public, your testimony today maintains that the EPA's clean air and clean water rules are actually helping the U.S. economy. Can you explain, ma'am, how these rules are helping the 9000 laid off miners in my district who are now out of work? Ms. McCarthy. Well, sir, the efforts that you identified are part of EPA's efforts to both reduce pollution that is impacting public health and damaging the environment, but to do it in a way that actually is very cost-effective, that is reasonable, that's appropriate and that continues to recognize the great need to continue to grow this economy and jobs. Over the course of EPA's history, since 1970, we have reduced air pollution by 70 percent while the GDP has tripled. We are looking in each and every major rule to ensure that we do it in a way that is specifically cognizant of reliability and affordability of our energy system, as well as impacts to the local economy and to jobs as well. So we are doing our best to protect public health in a way that is consistent with a growing and sustainable economy. WATERS OF THE U.S. RULE Chairman Rogers. Well, the proposed Waters of the U.S Rule was put forth, allegedly, to alleviate confusion over jurisdictional boundaries. However, this proposal, which I call the largest jurisdictional grab in recent history, seems to have only created more confusion over what will and will not be excluded under federal jurisdiction. Industries and private landowners are alarmed that nearly every tributary would now be heavily regulated. And if they wanted to try to use some of that land for a shopping center development or a farm or a covert on a farm or an irrigation canal or the like, they would have to come to D.C. to get a waiver or some sort of license or permission to proceed. No wonder they're confused and scared and frightened. I mean that's an alarming possibility for almost every American. Are you planning to maintain your definition of terms that have contributed to that confusion, such as a ephemeral streams? Is that the way you say it? Ms. McCarthy. Ephemaral. Chairman Rogers. Can we expect any clarifications on these broad terms that seem to include just about every body of water, so far. Ms. McCarthy. Let me try to clear up a few things, Jim. First of all, we believe that this is actually not an expansion of jurisdiction, and I think we can show that. I do know there has been confusion. One of the reasons to do this Rule was to respond to many requests for clarity and for consistency. We have received a lot of comments on the Rule. And if I could just clarify one thing, I know in your opening remarks you mentioned about the breakdown of positive and negatives in terms of our response. I just wanted to clarify that I know that Assistant Secretary for the Army, Jo-Ellen Darcy, will be responding to this and she is going to be clarifying the record. Actually, 87 percent of the comments we have received and processed have been supportive. So I just want you to know that we've done an extensive outreach on this. We will look at all the comments that came in. But recognize we are also continuing with the exemptions, like for agricultural return flows and those things that are in the current Rule. So we are not limiting any of those exemptions. We're trying to provide clarity here, not regulate land, but regulate waters that are necessary to protect drinking water and our natural resources. WATERS OF THE U.S. RULE--CLARITY Chairman Rogers. My understanding is that 60 percent of almost a million responses have been negative. Ms. McCarthy. I can't explain the numbers that Jo-Ellen provided but she will be clarifying this. My understanding is we have received a total of 1,046,217 comments. 87.1 percent were positive. Some were neutral, very small. Some were opposed in the total of 12.4. So far, we are still categorizing just a little bit over 4100 of those. So that's the breakdown I have up until now. As you can see, the ones that we are still looking at wouldn't tip the scale much. Sir, it doesn't mean that there aren't a lot of comments and questions that are coming in from this rule and that we won't be properly looking at those in doing our best to clarify as much as possible, because we will. There's a responsibility for EPA to do that and we will take our responsibility very seriously and make sure that when this rule goes out, there's significant clarity beyond what's been proposed brought to this issue. Chairman Rogers. It's incredible to me how the EPA and the Corps look at the same data, the same responses and come to two vastly different interpretations. I mean one of you is wrong. Ms. McCarthy. I think one of us might've had a subset. I will let Jo-Ellen speak to that issue, if I could, when she comes to you. But I do know that the Corps and EPA have been working hand-in-hand on this rule since day-one because we both recognize that additional clarity is essential, not just for the agencies to appropriately implement the Clean Water Act, but for our outside stakeholders who need to be certain that they can farm and ranch the way they've always done that and in a way that's protective of the natural resources that we both value so highly. NAVIGABLE WATERS Chairman Rogers. How would you go about determining exactly which kinds of tributaries, streams or even ditches, dry ditches, would be classified as either exempt or as part of your jurisdiction? How do you go about that? I mean we are talking hundreds of thousands of streams and bodies of water and dry ditches that get water once every 20 years or less. How do you go about doing that? Ms. McCarthy. Well, I think it's done in two ways. It's done by providing clarity about the information that we have available to us, the science that tells us what rivers and streams and tributaries need to be protected in order to make sure that our navigable waters aren't significantly impacted. That means that we need to look at them and determine what type of mitigation, if any, is necessary. Beyond that, it's done, and in the vast majority of cases today, on a case-by-case basis. It's done by calling the Corps and by looking at these issues. What we are attempting to do is provide a lot more up-front clarity and provide enough direction so that people understand what rivers and streams are important for drinking water protection, for flood control and a variety of other functions that these resources provide so that they themselves can understand where they are, where they need to be more cautious and where we need to work together to make sure that those waters are protected. WATERS OF THE U.S. RULE--PERMITS Chairman Rogers. Well, just in my mountainous Kentucky district, there are thousands of little creeks and streams and rivulets flowing through private property, alongside private property, tens of thousands of them. How would that farmer that lives on Buck Creek in Pulaski County, how is he to know whether or not he needs to come up here and get your permission? Ms. McCarthy. Well we are doing our best to define that. I think that, from my standpoint, if a farmer was relied on exemptions in the current rules, they can rely on those very same exemptions today. If they needed a permit yesterday, they can rely on that, as well. What we tried to do is to look at the science, Mr. Chairman, which is what we were directed to do. The science is very clear in some areas We make that clarity known and will in our final rule. In other areas, we know what to look for. For example, if a small river is only flowing intermittently and at famarol stream, if it doesn't have all of the designations, all of the characteristics like an ordinary high-water mark and it doesn't have the kind of characteristics that indicate that the duration, the frequency in flow is there sufficiently to have an impact downstream, then it would not be a waters of the U.S. So we are trying to identify those characteristics. Chairman Rogers. Why do we need to change the way we are doing business now? Ms. McCarthy. Because we are missing things and because people are confused. I think you saw some of that when the proposed rule went out. People didn't understand what was currently, clearly jurisdictional and what has been jurisdictional for decades. There were areas where people were unsure. There's a lot of effort spent on case-by-case analyses and case-by-case mitigation that people expect to have to pay for when that's just not the case. So it's an opportunity for us not only to be clearer from our perspective, but to also send a clearer signal for businesses about when they can pass go without having to move through EPA or the Corps. I think, that's an important cost savings to consider here. Chairman Rogers. I think you're into a really big-time briar patch that's going to be really difficult, impossible, I think, to do. Not to mention that it's infringing on private property rights, states' rights and the like. Even our military bases are concerned that they can't use the land they have to operate and train. Ms. McCarthy. Well, one of the things that we did after the proposal went out, it was pretty clear that people were confused by some of the language, not understanding what the agency's intent was. We, as a result of that, did over 400 public meetings and also reached approximately 2,500 individuals. We did all that we could before and after the proposal went out to make sure that we were listening to the states, and that we were listening to all of the key interests here. I think we've received considerable comments that will help us provide a path forward. But as you suggest, this is not an easy rule. If it were easy, it would've been done--we are talking about a law that's over 43 years old. It would've been done before if it was easy. But court rulings continue to confuse this and challenge us, and we need to be better. This is an attempt to make sure that we are protecting what we need to protect and sending a clear signal on all the other waters that don't fall within those categories. Chairman Rogers. Mr. Chairman, I have other questions I'll delay until later. Mr. Calvert. Thank you, Mr. Chairman. Ms. McCullum. WATER QUALITY STANDARDS AND WILD RICE Ms. McCollum. Thank you. Administrator McCarthy, I have an issue that I feel very strongly about, as do many members on this subcommittee. It's the government-to-government relationship between federal agencies and sovereign tribal nations. As you know, in Minnesota and across the Great Lakes Superior Basin, mining companies are seeking opportunities to mine cooper and nickel, which has a very high potential to contaminate our waters. For tribal nations in Minnesota, wild rice is a traditional crop with important economic, sacred and cultural significance. Let me be clear. Without the full consultation and consent of impacted tribal nations, the EPA should not even consider lowering water quality standards for wild rice. Instead, the EPA should be promulgating a wild rice water quality rule across the Great Lakes Basin with full consultation with tribes. This, for many of us on this committee, is an issue of fully honoring and respecting treaty rights with sovereign tribal nations. And I just wanted to clear up any confusion that there might be about respecting nation-to-nation agreements. CLEAN POWER PLAN Last summer, the EPA rolled out the Clean Power Plan, which will help cut carbon pollution from America's largest source power plants. Power plants contribute one-third of the nation's greenhouse gases emissions, and limiting their carbon pollution is vital to reducing the impact on climate change. As part of the Clean Power Plan, the EPA proposed two rules to regulate carbon emission from power plants. Could you please let us know if the EPA is on track to finalize its power plants rules this summer? These rules require states to submit compliance by 2016 in the summer. So over the next two years, how will the EPA be working with states to help them develop these plans? And then a concern that I have is, the past few years the subcommittee has included a rider that prohibits the EPA from using funds to regulate greenhouse gasses and power plants. Thankfully, this rider has been dropped each year. But if it were to be enacted, would states still be required to submit plans, regardless of the rider? Would you be prohibited from helping states with their plans? Because the state of Minnesota is very eager to work with you to do what we can to improve our air quality. Ms. McCarthy. Well thank you, ranking member. First of all, we are on track for a midsummer effort to finalize the Clean Power Rule. That will be moving forward. In terms of assisting states, we have done it in a number of different ways. First of all, we have part of the increase that you see, in our budget is to help set aside $25 million to actually provide to states themselves so they can work on these plans effectively. We also have additional funds that we are requesting so that we can have, and that's in the order of $25 million that we can have an increase in our staff to be able to respond to the needs of the states. We can have the tools and the technologies and the on-site technical assistance to help states and tribes develop proposals. I should've just said states. I apologize. Then we also have a proposal that the president put in, that would be a $4 billion plan to actually support the states who want to either move faster or farther. So that is all in the proposal as the proposed Fiscal Year 2016 budget. We are also looking at an additional part of the legal staff issues as to make sure that there is no bottle-neck in our ability to provide good advice and to look at all of the rules, as well as the permits across the agency that are not moving as quickly as we can because we don't have the resources assigned. So, we are looking at beefing that up so that permits can go more quickly and approvals of these plans can happen more quickly. The last issue is on the rider. If that rider should be proposed and succeed, the states would still be required to submit those plans. EPA would be precluded from providing resources and helping them the way that this proposal is looking to do because we are in partnership with the states on this effort. We have been in partnership with them before, during and after the close of this comment period, or even the development of this proposal, and I want to keep it that way. It is a collaborative approach that is enormously respectful of state needs and I want to make sure that we continue to work with them in partnership. Ms. McCollum. Thank you. And Mr. Chairman, I'll leave the Great Lakes question to Mr. Joyce, unless we miss it, and I'll catch it on the second round. Thank you. WATERS OF THE U.S. RULE Mr. Calvert. Thank you. Administrator McCarthy, over the past years, I believe, you've fielded every question imaginable regarding agencies Proposed Water of the U.S. Rule, and you've tried hard to clarify what the rule does and what it does not do. Unfortunately, a year later, I believe we are even less confident in what the Rule purports to do. If anything, it clarifies that more water bodies will be regulated, resulting in more EPA permits. You just testified that, of the one million comments, you believed 87 percent were positive responses where the Corps said that almost 60 percent were negative responses. So obviously, the two agencies are confused and can't agree on what the comments even say. So it's my hope that the EPA would heed these comments, withdraw the proposed Rule and identify where there is common ground before taking additional actions. So on that score, does the EPA plan to repropose the rule after it's finished reviewing and incorporating the comments received on the Rule? Ms. McCarthy. Well, we have had significant opportunity to review the comments and believe that we can finalize this Rule that is very respectful of the comments we received. That is what we intend to do, sir. Mr. Calvert. So what's the opposition to just withdrawing and reproposing the revised Rule? Ms. McCarthy. Because we have waited now with a statute that's 43 plus years old, I think we have been asked to do this. We have been requested by, not just members of Congress, by states to actually do a rule-making to provide this level of certainty. We believe that we should respond to those requests and make sure that we are protecting the drinking water-- Mr. Calvert. Because I understand the majority of the governors in the United States are opposed to this. Ms. McCarthy. I'm not aware of what figures that you may have available. I feel badly that there's confusion about how we've bucketed these rules into what's positive or negative. I will tell you that Assistant Secretary Darcy will respond to this, but my understanding is that all they had completed was a review of two percent. I don't know what two percent they chose of the comments, but I do know that we have fully looked at them and are happy to share the information and will make sure that the corrections are in the record. [The information follows:] Waters of the U.S. Question. Provide information on percent of negative comments received for WOTUS rule. Answer. The vast majority of the more than one million public comments received (approximately 86 percent) were supportive of the proposed rule. The base line includes all comments received, including mass mail-in campaigns. Approximately 13 percent of comments raised concerns with the proposal, and approximately 1 percent of commenters were neutral. Mr. Calvert. Well, certainly, from my perspective, I'm very sympathetic to small businesses. Ms. McCarthy. Me too. SMALL BUSINESS ADMINISTRATION RECOMMENDATION Mr. Calvert. And a comment submitted to EPA in October, the Small Business Association believes that EPA should have conducted a small business advocacy review panel prior to releasing the waters of the U.S. rule. The Small Business Administration recommends that EPA withdraw the proposal and conduct a panel prior to proposing the rule, re-proposing the rule. How do you intend to respond to those comments from the Small Business Association to conduct the small business review panel prior to taking additional steps on this rule making? Ms. McCarthy. Well, it actually was comments received by the SBA's Office of Advocacy. We had worked both with the SBA as well as with our Office of Management and Budget that actually dictates what rules need to have a panel established and what ones do not, and we followed their direction. But we have done extensive outreach to small businesses and I would be happy to provide that to you, because we believe that it was the correct decision to move forward, but certainly that did not mean our obligation to do outreach to the small business community and make sure that their comments were heard and that we provide whatever clarity we need to assure them of that. Mr. Calvert. Well, Administrator, it seems that no matter what the comments are, no matter what the opposition may be, this train is on the track. Mr. Israel, you are recognized. LONG ISLAND SOUND Mr. Israel. Thank you, Mr. Chairman. Administrator McCarthy, I want to talk to you about the Long Island Sound, something that is not just important to me as a Representative from Long Island, but important to the entire nation. It is a $9 billion generator of economic activity; it is a critical estuary that is important to our ecosystems, and to our national environment. For the past few budget cycles the Long Island Sound has been funded at about $4 million, and this year the President's budget requests a little less than $3 million. Members on both sides of the aisle who represent the Long Island Sound area have long believed that the minimum level of funding to preserve and protect the Sound, not just environmentally but economically, is about $10 million, and that is what we have been pushing for. Can you tell me the kind of effect the reduction in the budget will have on Long Island Sound restoration and protection efforts if that lower figure is what is included in whatever funding proposal we settle on this year? Ms. McCarthy. Well, first of all, Congressman, I share your love for Long Island Sound. It is one of my favorite water bodies as well and I understand how precious it is and how challenging it is to have that many people living on your shores. I do not have exact figures on how the Long Island Sound Committees that are looking at this will manage on a tighter budget. I will say that difficult decisions were made in this budget despite the fact that we are requesting more resources and will be working with the adjoining states and with all of the study groups to make sure that we can prioritize effectively under this type of a budget constraint. Mr. Israel. Well, I would invite you to Long Island to meet with our stakeholders and member of the bipartisan Long Island Sound caucus. Again, both sides of the Sound, but also both sides of the aisle, and hope that we can work together with you on passing the Long Island Restoration and Stewardship Act, again a bipartisan bill; Congressman Peter King has been one of the co-sponsors. I hope we can work together in getting that passed and reauthorizing that program. So we will send an invitation to you to come to Long Island. I will even give you some good pizza while you are there. Thank you. Ms. McCarthy. I appreciate the invitation. Mr. Calvert. Thank you, gentlemen. You can bring pizza to this Committee sometime and share it. Mr. Israel. Done deal. Mr. Calvert. Mr. Simpson. REGION 10 EMPLOYEES APPRECIATION Mr. Simpson. Thank you, Mr. Chairman. First let me say I appreciate your employees out in Region 10; Dennis McClaren is doing a great job. I enjoy working with him. We sometimes disagree about what the EPA has to do or what he has to do, but I have always found him to be a gentleman that is willing to sit down and talk to us and try to work out any differences. We have done some good things with Dixie Drain in Boise to help reduce the cost of having to remove phosphate from the river before it goes into the Snake River. Ms. McCarthy. Thank you. I will pass that along to him. He certainly reflects the kind of leadership that we are looking for in the Agency. Mr. Simpson. Now let me ask you a couple of questions. Ms. McCarthy. Does it go downhill from here? Mr. Simpson. It goes downhill from here. Ms. McCarthy. Just checking, just checking. CLEAN AIR ACT RULE CLARIFICATION Mr. Simpson. I will get into the Clean Water Act in just a minute. But yesterday you testified before Chairman Whitfield's Subcommittee, and I have heard from a couple of sources including the Chairman and a couple of others who listened to it--and I want to give you a chance to clarify this statement for me--that when asked about the power plant rules, clean coal fired power plant rules, that your response was these rules were not put in place because of pollution, they were about investment opportunities. Ms. McCarthy. No. Let me try to clarify that. Mr. Simpson. I thought you might want to. Ms. McCarthy. This is a Clear Air Act rule that is following the Clean Air Act as Congress authorized EPA to implement it. It is a technology based standard that is looking at reducing carbon pollution. That is the four corners of the effort. The question was asked of me as to why I think this is--if I may paraphrase, why I feel so positive that this rule provides the flexibility that states need, why am I saying it is not about pollution control technology. I indicated that the flexibility in our proposal took it away from needing as our standard programs usually do. It is about putting a scrubber on an end of the pipe, which we can all agree is a cost. Instead if we look at this as an opportunity to invest in energy and our economy in a way that states believe is beneficial to them both environmentally and economically, that can grow jobs, that there are opportunities for this to be a real investment that the states would want to make regardless of the carbon pollution requirements. That is an investment in renewable energy, energy efficiency programs that keep our energy system reliable and affordable. I believe that it is a much more positive way to look at it, and one that is closer to reality of how states are looking at it as well. Mr. Simpson. Okay. Well, thank you for that clarification because I did not think it could be accurately reflected in what I said. Ms. McCarthy. I appreciate the opportunity. Mr. Simpson. When we talk about the Clean Water Act I think it is always important to remember, and nobody ever seems to state it, but we are not talking about waters that were unregulated before. Ms. McCarthy. That is correct. CLEAN WATER ACT JURISDICTION Mr. Simpson. These were regulated by the state, just not under the Clean Water Act by the federal government. I find it hard when you say it does not represent an expansion of the EPA's jurisdiction. I think it is a vast expansion of the EPA's jurisdiction. In fact when you talk about the connectivity rule I do not know how you inevitably get to the point where you are going to start regulating groundwater also. And I will tell you what, a real short story, when I first got elected to the legislature in the State of Idaho, I drew up a Constitutional Amendment, and it had to do with hunting and fishing. And it had a line in it that said federal waters. All of my colleagues in the legislature that agreed with what I was trying to do said they could never vote for that because they would not put in our Constitution anything that said federal waters because there were no federal waters, they were state waters. That is how strongly the state feels about that. And so when they look at expansion of the Clean Water Act, they get very, very concerned. And I realize that we had to clarify what navigable was, in terms of navigable to what, or to who. I do not know why the Court said that. But the answer seemed to be let us regulate everything and that clear it up. I do not think that is what the Court said, and it is up to us to come up with a rule that more accurately reflects the role of the states and the role of the federal government. As an example, the Supreme Court in the SWANCC decision specifically rejected the Agency's assertion because that when you say this is not an expansion of jurisdiction, it is just those waters that the EPA has historically claimed jurisdiction, the SWANCC decision specifically ``Rejected the Agency's assertion that use of an isolated wetland by a migratory bird was a sufficient basis to establish federal jurisdiction. The proposed rule being considered now suggests that the movement of wildlife including birds between one water and another, or the reliance on a particular water within a watershed by a species or for any part of the species' life cycle can be used as evidence of the connectivity of waters for purposes of asserting federal jurisdiction.'' Can you explain how that is not an expansion of federal jurisdiction? Ms. McCarthy. I am happy to. Let me take these issues one at a time. This is a rule to identify the jurisdiction under the Clean Water Act using science to the best of our ability. What is regulated depends on what needs a permit. So if you are not doing anything to a water to either pollute it or degrade it, then there is no conversation that needs to be had. So there are differences in the terms that we need to recognize. We are specifically making it very clear that we are not regulating groundwater under the Clean Water Act, that is not part of the---- Mr. Simpson. But how do you not eventually regulate it? Ms. McCarthy. Because it is not jurisdictional. We do not believe that is part of the jurisdiction of the Clean Water Act. It has been one of those things that has been up in the air. What we tried to do was nail it. We have clearly stated that. If there are other things like that that we need to resolve we want to do that. Now the relationship between the states and the federal government, I think we recognize that states are really primary in many of the issues related to waters and water quality. We recognize that and this rule does not change that. We recognize that some states had questions as to whether or not this would change their rules. We are going to be resolving those issues in the final. It was clearly not our intent. Maybe we did not say it as clearly as we need to and we will take care of that as well. Relative to SWANCC and isolated wetlands, SWANCC said that--you correctly raised their issue which was the migratory birds issue is not sufficient to determine jurisdiction. What the next decision, Rapanos, said was much more clearly what you need to do to establish jurisdiction. That means you have to establish that the connectivity not just connected, but they need to be connected in a way that impacts significantly the downstream waters. They do not say it exactly that way, but the connection needs to be there. So what the science tells us is what is connected, but that is on a gradient, and we know that just being connected is not enough. It needs to be more than just connected so that we can actually determine whether or not it would impact if it were polluted or degraded, would it impact the actual biological, chemical, physical characteristics of the receiving water, because if we do not think it would then that connection is not sufficient for jurisdiction. So now you know why this is a confusing issue to try to resolve through rule making, but you also know why it has been confusing for a long time and people are asking for clarity. So we realize that while we may not have cleared everything up there is an opportunity to get a lot clearer and we will try to do that as effectively as we can in the final rule. Mr. Simpson. Okay. Thank you. Ms. McCarthy. All right. Mr. Calvert. Thanks, Mr. Simpson. Next is Mr. Kilmer. NATIONAL ESTUARY PROGRAM AND PUGET SOUND GEOGRAPHIC FUND Mr. Kilmer. Thank you, Mr. Chairman, and thanks for being here, Madam Administrator. I also want to thank you for coming out to Puget Sound this past summer and for the work you and your Agency are doing to help us recover that important body of water. That is not just an economic engine for the State of Washington, but it is also a complex ecosystem in need of protection. I was pleased to see that the President's budget included an increase for both the National Estuary Program and for the Puget Sound Geographic Fund. And I have got a couple of water related questions. One, I just want to get a sense from you of how we can better highlight our needs in Puget Sound and continue to work with the EPA to move forward with the recovery efforts there and the funding of recovery efforts there. What do we do to ensure both the Geographic Program and the National Estuary Program remain sustainable and funded? We also see in our neck of the woods not just point source pollution issues, but non point source. And we have got an entity in our neck of the woods called the Washington Stormwater Center that is looking at innovative efforts to address stormwater. To what extent does the EPA fund stormwater related activities, and are you doing work around finding solutions to stormwater financing and innovation? And, I guess, aside from funding constraints how can Congress help advance those efforts? Ms. McCarthy. Well, thank you for asking the question. It was great to go out to Puget Sound to see the resource that is really so need of protection. There are many challenges up there. I think we all need to keep highlighting these issues, not just highlighting them to EPA, but clearly all of these geographic initiatives are worthy of support. The question is how much can we actually afford to do within the budget constraints that we all face. One of the things we are trying to do is recognize that there is a collaboration between state, tribal, and federal levels that needs to happen so that we are not duplicating efforts. We are spending a significant amount of time becoming a better partner for states and tribes so that we can work more collaboratively and not duplicate and make our funding go further. The other thing we are trying to do is establish opportunities for financing strategies for all of these efforts that also bring private dollars to the table because the private sector has a large stake in the quality of these large water bodies. They are not just iconic to environmental advocates or you and I, they are necessary for the economic vitality of the regions that surround them in the business community. So we have put together some new financing centers. First of all we have brought together one that I mentioned earlier, that is our Water Infrastructure and Resilience Center, because it is an opportunity to work more creatively on different financing strategies. We are trying to stand up what Congress asked us to do which was a WIFIA program so that we could also look at opportunities that are more directly related to state programs and interests. So we are working together to try to address these issues as well as we can, recognizing that in all cases our needs are great, but there are wonderful ways for us to continue to work together more efficiently and effectively with the resources that are reasonable for us to ask. Mr. Kilmer. Are any of those efforts being undertaken in Region 10? Ms. McCarthy. Many. Mr. Kilmer. Okay. Ms. McCarthy. Many. And many of them will be related to our work with both the states and Region 10. INVESTMENTS IN STORMWATER UPGRADES Mr. Kilmer. The other thing I wanted to ask you about is that as I travel around my district I have communities that want to make investments in stormwater upgrades, businesses that are struggling to keep up with environmental compliance costs, and tribes on the coast that are literally working to relocate schools because of persistent flooding. I think these are important challenges for the EPA to take on and I would like to get a sense from you how the EPA plans to engage with communities and what initiatives the EPA is looking to pursue in that regard. I know that one of your goals is making a visible difference in communities across the country, so can you talk about how you are working with communities that are struggling with these challenges? Ms. McCarthy. I can because water ends up being an incredibly important issue, especially with the changing climate, and resilience is going to be important. We have established an opportunity to work, or a focus area to work more effectively with communities. We have identified almost $47 million to be able to go to this effort in addition to other work that we might do, but work that is coordinated with it but not duplicative. What we are trying to do is work with our regions to actually work in a multimedia capacity with communities so they understand the opportunities they have, not just with us but across the federal government to leverage resources to help integrate both their planning efforts--they need to look at water, wastewater and stormwater so that we can work more effectively together. We are going to be creating a network of what we call circuit riders which are folks that are expert in these community issues so that they can use their expertise in more than one place and be able to share what they learned in the prior one with the next community that they work in. We are looking at opportunities for advancement monitoring and decision making tools. As you know we have put out things like the Stormwater Calculator, so that as communities are looking to take efforts themselves they have tools readily available for them. And we have also increased our brownfields project funds by $30 million specifically targeted at really good community work that will help advance all these goals. You know I could go on and on, but we have more money for states and tribes, $108 million more in stag money that we are looking for. This will amount to a more than 30 percent increase for tribes, in how we are supporting them. We are looking at superfund increases so that we can get at those superfund sites as well. We are looking at opportunities for new technologies moving forward that we can advance with states. We are truly in a partnership not with states but local communities that benefit from the funding that we send to the states. Mr. Kilmer. Thank you. Thank you, Chairman. Mr. Calvert. I thank the gentlemen. Next, Mr. Stewart. Mr. Stewart. Thank you. Did we skip someone, Chairman? Mr. Calvert. Sorry. Okay. Then we will go with Mr. Cole. Mr. Stewart. I defer to the more senior member, sir. Mr. Calvert. Okay. Mr. Stewart. I do not want to get the Chairman of the---- BUDGET CONTROL ACT Mr. Cole. What a nice way to put that. Thank you very much, Colonel. (He was a Major) Thank you very much, Administrator McCarthy, for being here. And I want to make a point that actually is not directly on your budget, but I think it bears repeating because I have heard this from a number of administration officials when they come in to present their budgets in front of the various Subcommittees. I do not think you would find any of us that disagree: we would all love to get rid of sequester. I do not know an appropriator that would not like to do that, but it is the law of the land, and it is a law that the Congress passed, that the President signed. And frankly if you go back and read Bob Woodward's book if I recall, The Price of Politics, the sequester is actually an administration or presidential idea and suggestion in that negotiation; it is not going to be wished away. And with all due respect to the President, the various mechanisms that he is proposing in his budget, to provide additional money, are not going to pass the Congress, and he knew that when he put them in there. I do not know if we will do this again, but in the past, when we have put the President's budget up on the floor, most Democrats have not voted for it. And if most Democrats will not vote for it, neither will Republicans. I think where we are headed is the default position: the Budget Control Act. Any budget that is not based on that, or if there is not a negotiation going on, to me is not likely to reflect reality. I think it is going to put you in a difficult spot as an administrator. I think it puts the public in a difficult spot; it looks more like a political document than a real budget. I think we are playing with a house of cards here that is going to collapse pretty quickly; we are making requests and the money is not there. Absent a change in the law, I think you are going to be basically where you were in the last budget cycle. Having said that, and I say that again not directed at you, it is just something I am routinely saying to people, maybe we actually get that negotiation into a realistic format. We did a Ryan-Murray deal a couple of years ago, which I think was a very good deal, and two sides can work together. But at some point that has got to start. My guess is it will not start until after we go through the appropriations process. So we will actually be living within the law. I do want to thank you personally for working with us to get a permanent lab director at Kerr Labs in Oklahoma. Your department was extremely helpful in making that happen and we are very pleased with the Director that you chose and sent down there. Ms. McCarthy. Good. Mr. Cole. Absolutely. The staff there is a terrific staff and it has the most active alumni association of any federal facility I have ever seen because people that retire continue to take a deep, deep interest in the groundwater work, and world class scientific work on water quality takes place. So thank you. Ms. McCarthy. That is great. Thank you. TITLE 42 Mr. Cole. To that point, and this might help the rest of the Committee, I made myself familiar with the Title 42 hiring in this process, and what an important tool that was for you in being able to get us the kind of Director that we needed. So is that a tool that you use elsewhere? Ms. McCarthy. It is a tool that we use at our office of Research and Development which oversees labs as well. It just provides us an opportunity to more effectively compete to get the world-class scientists that we need working in the agency in these vital positions. It has been authorized for an additional five years. We only use it when we need to because we understand that we are all budget constrained but I couldn't be more pleased that we have been able to fill that position and with somebody with credibility that we see. And really, without that opportunity, it would have been extraordinarily difficult. Public service is wonderful. Lucrative is not part of wonderful. Mr. Cole. Well, yeah, I am sure you know that from firsthand experience. Tell me a little bit, we had a flap last year that I think, depending on how many rural fire districts you have in your district, became a considerable concern. And there was a temporary suspension of military surplus vehicles and what was going to rural fire departments. And these are, again, self-supporting entities that really do great work. We have had a great relationship with the military providing vehicles. I know the EPA had some concerns. Can you tell us where we are at today? Ms. McCarthy. Yeah, we have resolved that issue and thank you for raising it. I think it was raised quickly enough that we realized what the concern was and we were able to address it very quickly. It had to do with a Clean Air Act obligation for vehicles or engines and I don't remember exactly how we fixed it. All I remember is when it got raised everybody said we have to fix this. And so, I appreciate it very much. TRIBES Mr. Cole. Well, you did, so thank you as well. There was some concern that the vehicles were not environmentally safe and so, thanks for backing off that pretty quickly. You mentioned some of the things you are interested in doing with tribes and a number of us up here, Mr. Simpson I know in particular, when he was Chairman of Interior. We have visited reservations and seen some of the infrastructure problems they have in terms of clean water and water distribution systems. So I would like to know what you are planning to do in your budget, and what you think is necessary. A lot of these are, as you know, very remote locations with very inadequate infrastructure. There has been very little federal investment and obviously, in many cases these are very poor tribes. They don't have funds of their own. Ms. McCarthy. And thank you for recognizing that. We have been working very hard with the tribes to make sure that they are--the money that they can use for infrastructure purposes is increased. We are looking at a $96 million increase under our tribal gap program, I'm sorry, $96 million this year which is a $31 million increase over what was enacted in 2015. You know, we are trying to also make sure that we are bolstering the ability for tribes to deal with some of their solid waste issues. We have proposed $3 million in extramural funds just to make sure they have some core services that the rest of us sort of take for granted. And they need some help there. We also are working with Puget Sound to dedicate some additional resources to the tribes to allow them to keep participating in that effort and to benefit from the clean-ups that are essential for Puget Sound. And that will also ensure that we meet our trust responsibility to the tribes. And we also have some set-asides under the Drinking Water Fund where we are making sure that $20 million, or two percent, of the appropriated funds are set aside for Indian tribes and Alaskan native villages. They have unique and critical needs that we need to fund. Mr. Cole. Well, appreciate that last question in this regard and then, I will yield back. Could you enlighten me, or enlighten us a little bit, regarding how you plan to prioritize these requests? We know the needs are always going to be greater than the dollars you have. When you are looking at a reservoir on an Indian reservation, or water infrastructure, how do you make those choices? Ms. McCarthy. Well, we have to actually set it up as a competitive process where we describe the criteria. We even take comment and publicly put those out. The challenge for dealing with tribes and Alaskan native villages is their ability to be able to compete effectively given their limited, you know, resources to be able to hire consultants and do the work. Which is why both in the funds that I have recognized but also in the Clean Water revolving fund, the SRF, we do set aside---- Mr. Cole. Do you do---- Ms. McCarthy [continuing]. So they are competing against each other. Mr. Cole. Right. Ms. McCarthy. We can help them and provide them technical assistance. But the criteria---- Mr. Cole. That is what I was going to ask. Ms. McCarthy [continuing]. Is publicly available. It is discussed. There is nothing that doesn't make this a totally competitive process. But we do set asides for the tribes. It is appropriate. It is necessary to do that. And it has provided them opportunities to compete effectively against one another for what is the highest priority items that we can take care of. But it also gives us a sense of what the needs are in the tribes and what we might want to request in the next year which is why I think it is important for these funds to go through so we continue with our commitment to the tribes to get them under the standard of living that the vast majority of people in this country enjoy. Mr. Cole. Well, thank you for that and thank you for your efforts in that regard. And I yield back, Mr. Chairman. Mr. Calvert. Thank you, Mr. Cole. Next Ms. Pingree. NATIONAL ESTUARY PROGRAM Ms. Pingree. Thank you, Mr. Chair. Thank you very much for being here today and for the tough challenges you take on. None of the work that you do is easy and I appreciate all the answers you have had for questions today and many other things we have worked with you on. I just want to bring up a couple of things and I was glad my colleague from the other coast talked about the National Estuary Program. And I just want to say that has been very beneficial to us on the Maine coast. The Casco Bay program is funded through the NEP and they have at least two initiatives going on right now and it is critically important as we are in this very difficult time for a lot of ocean waters and certainly off the Northeast. We are worried about estuaries in relation to that. They are doing a study on the green crabs which is an invasive species and has seriously had an impact on our mussel population. And just recently, I heard that many of the natural mussels are not there and not harvestable and I would hate to think that Maine would have to lose yet another species. I also saw a recent extreme sea level rise. We are already up five inches and I think people, whether we agree with everything about climate change or not or, however we perceive this, five inches of coastline is a very serious business to a coastal state and will continue to have huge impact for us. The one thing I wanted to ask you to talk a little bit about, and again, just thanking you for your commitment to climate change and the President's budget focusing on this and making sure that we are better prepared or working on these issues. Like I said, we don't always all see this from the same way but I go back to my home district and see a stark change in the people who have to deal with the natural resources. The farmers who deal with more extreme weather, and certainly, out west with the drought, foresters who have issues with fire and a whole variety of species that weren't there before invasive pest species and then, certainly our fishermen. Representing a fishing state, I have never seen fishermen so worried about the species they never saw before coming up in their lobster traps, worries about diseases coming to the lobsters that used to be much further south along the coast, losing species like shrimp to northern waters. So these things are very real to us and are very worrisome. Just recently, I learned a little bit more about the existence of blue carbon and the role that salt marshes, sea glass meadows and wetlands have in absorbing, processing and storing that. I would like to hear you talk a little bit more about what you are doing with coastal communities around blue carbon and what kind of research that you are doing to discover more about it. We have so many salt marshes and estuaries in our state and they play such a critical role. I am interested in your take on the science and some more information about it. Ms. McCarthy. Well, thank you for raising all of these issues because I do agree that people across the U.S. are worried about the changing climate and the extreme weather events we are seeing because they recognize that global warming is not exactly the term to come out of the gate with. It is really all about extreme weather whether it is the snow that we are seeing or the heat that we are experiencing and the droughts. On blue carbon, the good news is that this is something that I think many people are now attuned to and are doing research on. As you know, across the U.S. government, in particular, in NOAA, they take really a leadership role in some of the research activities here. But I do also know that there has been a national conference that was sponsored on ocean acidification in the U.S. that drew a number of countries in with experts and researchers and scientists to begin to make a concerted international effort to take a look at this issue. It is one of the, I believe, one of the least studied areas is to understand what ocean acidification means and how the lack of salt marshes and other opportunities for buffering those issues, what it actually means. It could end up being one of the most difficult issues for us to get our arms around but there hasn't been the kind of research effort that is necessary. And in terms of working with coastal areas, we have been supporting not just technical assistance and research but also tools that are available to understand what the challenges are and how we can more effectively look at these. Everything from mapping that is done across the U.S. government to all of us categorizing the impacts and also looking at what you can to avoid those. And how do we more naturally look at resiliency in our coastlines to protect our property and our lives. It is a significant challenge because so much of the northeast is our coastlines. But being from the northeast myself, I will do everything I can to work. Ms. Pingree. I recognize the accent. Ms. McCarthy. Yeah, did you? I thought I really carefully covered it. CLIMATE CHANGE Ms. Pingree. Well, I will just say again, thank you. I think that is one of the big challenges of dealing with the science around climate change and certainly from an environmental perspective is that we are all familiar with the idea of something polluting our air coming out of a smokestack or an automobile or polluting our water coming out of a leaking oil tank or something else. But this is such a different, complicated issue and you talk to people about ocean acidification and their eyes glaze over and they think, ``that is a vast ocean, what should I care about it? In the oyster fisheries, shellfish not being able to make a shell and all kinds of impacts that we haven't even seen yet are going to be huge for our economy, our jobs, our coastal communities. So there is a lot of work to do. Ms. McCarthy. As Congressman Kilmer will tell you, Washington and Oregon are losing oyster beds to Hawaii these days, right? Ms. Pingree. Yeah. That is just very difficult. Well, thank you. I yield back. Mr. Calvert. Thank you. Mr. Stewart. Mr. Stewart. Thank you, Mr. Chairman, Madam Administrator, it is good to see you again. We appreciate your service. I wish there was more that we agreed on but we recognize that you represent the administration and his goals and objectives and that puts us at loggerheads. I appreciate these hearings. I don't suppose that you like them a whole lot. You come and you read your statements and we read our questions and you answer those questions sometimes. Sometimes you do a masterful job of answering in a somewhat ambiguous way which we respect and appreciate as well. I don't suppose we change your mind and I don't suppose you probably change ours. But I would like to ask you a question and in doing so, I want you to know I am sincere in this question. I am not trying to paint you into a box. I am not trying to--it is not a gotcha question at all. I really do want to understand if you agree with this but I need to set the question up quickly if I could. I was an Air Force pilot for 14 years. I flew one of the most sophisticated weapon systems ever built. I know a little bit about national security, I think. I sit on a House-Selected committee on intelligence right now and in that I am reminded every day, as I think most of us are, that we live in a dangerous, a chaotic and an unpredictable world. And we could go down a long, long list, ISIS, the possible nuclearization of Iran, a war in Ukraine, the rise of terrorist threats around the world, a generational skip in the weaponization of China. And I would also add an unsecured border to that. Which brings me to my question now and that is in the fact of all this, senior administration officials, including the President himself, have said climate change is the greatest threat that we face. And I just find that stunning. And I could quote them. Secretary Kerry recently said climate change is now considered the worst and most fearsome weapon of mass destruction. The President, in a State of the Union, said no challenge. And he reiterated it, no challenge poses a greater threat than climate change. And then, Vice President Biden speaking to a group of college students says global warming is the greatest threat of your generation, of anything at all. And I would like to emphasize, they didn't say it is one of the greatest threats. They didn't say it is one of our primary concerns. They said it is the greatest threat. And again, I just find that stunning. And I wonder if you agree with that assessment. Ms. McCarthy. Well, I don't know if I am close enough to make a comparative statement. I am sure that the folks you recognized are working on all of those issues. What I do know is that the President is very serious when he says that climate change is an issue that is not just an environmental one but one that is fundamental to our economy, fundamental to national security. And I have been in other countries where I have been most recently to Vietnam where I went there to talk about their water quality challenges within Hanoi and to work with them on a variety of issues. They couldn't stop talking about the impacts of sea level rise in the Mekong Delta. Mr. Stewart. Well, I understand there are those who have concerns as we all do. Ms. McCarthy. Yes. Mr. Stewart. You started out by saying that you didn't know if you were close enough, indicating you didn't have enough background or expertise in that but honestly you do. Every one of us do. I would think every American has the capability of looking at these threats and in a reasonable fashion saying, this one is greater than this one. Ms. McCarthy. I feel-- Mr. Cole. And I can't imagine any one of saying that this is the greatest threat that we face. Ms. McCarthy. If you look at, sir, and I would ask you to take a look at the national security strategy that was recently laid out. It is all about water and the expanding areas of drought that will impact economies and lives. It is all about the displacement of large populations that will provide a level of insecurity that will be extraordinary as sea levels rise. There is a very large challenge with climate change and the impacts are here today. You can count them. You can look at them. You can cost them out. Many people have. Mr. Stewart. So I am assuming---- Ms. McCarthy. They think it is a threat to national security as well as the environment and the economy here. Mr. Stewart. So I am assuming from your response that you would agree with that analysis that it is the greatest threat then? Ms. McCarthy. I would agree that it is certainly the greatest challenge that my agency is facing at this point in terms of what we can contribute to some of the solutions and the actions moving forward. Mr. Stewart. Okay. Well, and I would appreciate that, that you are representing your agency. Referring to the other members of the administration including the President himself, though, who is not representing your agency, he is representing national security and our national interest. Again, it stuns me that he would draw that conclusion. If I could, in 30 seconds, and our timer is not working or not activated, Mr. Chairman. Mr. Calvert. I'm the timer. NATIONAL AMBIENT AIR QUALITY STANDARDS Mr. Stewart. Okay. I will do this quickly. We have this proposed ozone rule through the National Ambient Air Quality Standards and it is, you know, growing from 70 to 65 parts per billion and we have discussed this, Madam Administrator, actually is--when I was subcommittee chairman on last year and there are major parts of the west that it is virtually impossible for them to meet these standards. There is more naturally occurring ozone than there would be allowed. And there is not a thing in the world they can do about it. And I am wondering if you could update us on your proposed--or your intentions on this proposed rule and if you intend to go forward with that, what would we say to those very rural parts of my district, for example, that simply have no choice? They would be out of compliance. Ms. McCarthy. Well, the recommendation that EPA, that I made, in the proposed rule was to consider a range between 70 and 65. And if you look at all of the national rules that are in place today and what we expect to see moving forward, we do know that by 2025, at the range of 70, that you are likely see nine counties in non-attainment by 2025 at that level because of all of the efforts already underway to reduce that pollutant. And so, I don't necessarily believe that there are no ways to achieve attainment out west. I do know California, that was with the exception of California, nine counties, has particular challenges but they are looking at an attainment date of the year of outside of 2037. So this is a health-based standard that we will work with states as we have done before to try to make sure that they are not trying to do anything that is outside of their authority or purview. They certainly don't have to get down to levels that are not attributable to them. And we will work at looking at the costs associated with those and be as reasonable as we can moving forward. But this is what the health studies are telling us are necessary to protect public health and welfare. Mr. Stewart. I look forward to a further conversation with you on that issue. Ms. McCarthy. Okay. Thank you. Mr. Stewart. I don't think we will settle it here but thank you. Ms. McCarthy. But thank you so much for the questions. I appreciate it. Mr. Calvert. Thank you, Mr. Stewart. He is modest. He still holds the world speed record for flying around the globe so we congratulate our colleague. We will take this as far as we can, we may have to recess for a little while and come back. But go ahead, Mr. Jenkins. SPRUCE MINE PROJECT Mr. Jenkins. Troubles in West Virginia, Greenbrier County, Fayette County and your EPA folks on the ground have been very helpful in the water quality testing and, you know, it kind of reminds me of what the core functions of the EPA are and those are important functions and I appreciate that kind of work. My concern is that there are a number of actions and activities of the EPA that I simply can't agree with. I am very familiar with what I believe and so many others believe is agency overreach as it comes to the Buffalo Mountain Project, and the Spruce Mine Project. It is just incredible to me that you can have a Corps-issued permit and then turn around and have the EPA retroactively veto it. With both of these projects and so many others, the message coming out from this EPA and their actions are having, candidly, a devastating impact on my state and my people. This is real as you well know, I am sure. We have lost 9,000 jobs in West Virginia just in the last few years that have been impacted, in my opinion, in a large degree--but I don't think anybody would dispute at least some degree--by the actions and behaviors of the EPA. And I am glad you are nodding your head. Ms. McCarthy. I am listening. Mr. Jenkins. Well, okay. I was hoping that the nodding meant you agree. But I am very troubled. Our production is down 20 percent in just the last few years and now you are proposing a water rule and a power plan that is going to exacerbate the unemployment, the underemployment of the people of West Virginia. And I simply can't support that. You know, as a new member of Congress, I get a justification of appropriated--this is your justification, supposedly, for what I call your war on coal. And it is a war on coal. It is a war on the jobs of the people of West Virginia. You went on your listening tour but you didn't come to West Virginia and you were challenged yesterday by the congressman from Ohio who just simply asked, would you come to my state? You could not bring yourself to say, yes, I will come to Ohio. So let me ask you, will you come to West Virginia? Ms. McCarthy. So let me---- Mr. Jenkins. And I saw how you worked with the congressman yesterday. Just simply, will you come to West Virginia to hear the voices of the people of our state of the impact on the coal and water plan and rules that you have got? Will you come to West Virginia personally? Ms. McCarthy. Sir, my answer is the same as yesterday is that we have done extensive outreach. We have hearings all over the U.S. If there is a stakeholder group that I have not heard from that you think was precluded from commenting, we are happy to address that issue. Mr. Jenkins. The stakeholders that I care about are the hardworking men and women of West Virginia. It is incredible to me that the administrator wants to go off and meet with groups. Why don't you want to meet with the people? Meet with the people of West Virginia. Look at that coal miner in the eye. That coal miner may not be with a stakeholder group but they have got to put food on their table each and every day and that hardworking miner needs to get government off its back. So what I am asked to do as an appropriator now is say, do I agree with your justification for your budget. So let me ask you, number one, does your budget, if we approve it as requested, give you the third largest budget in EPA history? Ms. McCarthy. I don't know how it is clarified, sir, how it ranks. Mr. Jenkins. Okay, the next question then. Ms. McCarthy. Yes. Yes. Mr. Jenkins. Okay, well, great. Ms. McCarthy. That was a good one. PROPOSED BUDGET Mr. Jenkins. Does your budget propose a $58 million increase to fund the President's climate action plan? Ms. McCarthy. Just short of 58. Mr. Jenkins. Okay. This budget increase proposal increases your budget by almost a half a billion dollars. Ms. McCarthy. Yes. Mr. Jenkins. And but it also cuts, does it not, it cuts out $54 million from the State Revolving Funds Program? Ms. McCarthy. As opposed to 2015 enacted but it is a significant increase over the presidential request---- Mr. Jenkins. And your budget sets forth that you are not growing the number of FTE workers. Instead what you actually are doing, while you take pride in maybe not growing your employment, you actually are asking for funding for lawyers to carry out the regulatory and the legal challenges that you are faced with, are you not? Ms. McCarthy. That is not correct, sir. Mr. Jenkins. Well, so you are not asking for new money, I think it was $27 million to fund a new FTE lawyers---- Ms. McCarthy. That is correct. Mr. Jenkins. Okay, well---- Ms. McCarthy. But I wanted to explain. EPA has shrunk its workforce significantly because of budget constraints. We are trying to hire to keep our work moving forward. The lawyers you are referring to are not specifically dedicated to rulemakings. We have identified that in order to serve the public, including the business community, that our ability to assess the legal viability of permits and other things, it is necessary to have more legal staff to be able---- Mr. Jenkins. Less--you want more lawyers---- Ms. McCarthy [continuing]. To get our job done in a variety---- Mr. Jenkins. Well, I don't want to fund more lawyers to defend what I believe is overreach and improper action. Last question. Ms. McCarthy. Yep. JOB LOSS Mr. Jenkins. Yesterday I was stunned, stunned, you said ``In the data we see, job loss is not a consequence of an environmental rule.'' So you are saying the actions of your agency and environmental rules have no impact on job losses? Ms. McCarthy. I do not know whether--what specific quote you are using but I indicated that we do a thorough analysis of costs and benefits for our major rules---- Mr. Jenkins. Well, let me ask you just simply---- Ms. McCarthy [continuing]. And I indicated that---- Mr. Jenkins [continuing]. I know my time is up. Let me just simply ask you because I have got the audio for it and I would play it for the speaker right now. You said, ``In the data we see, job loss is not a consequence of an environmental rule.'' And that, to me, showed an incredible lack of sensitivity and awareness and concern about the actions of this agency. Because if you go into your rulemaking process with an attitude that nothing we do impacts jobs, then you don't care about jobs and I do. Thank you, Mr. Chairman. I yield back. Ms. McCarthy. You may want to listen to the rest of the conversation, sir, because we care deeply about economic implications and jobs. Care deeply about it. Mr. Calvert. All right, we are going to take a short recess for approximately 15 minutes. We have some votes. We will be right back. Thank you. [Recess.] Mr. Calvert. The hearing will reconvene. Sorry for the absence. Mr. Joyce, you are recognized. GREAT LAKES RESTORATION INITIATIVE Mr. Joyce. Thank you very much, Mr. Chairman. Good afternoon, Administrator McCarthy, and I am sorry you had to wait for us. As you know, the Great Lakes Restoration Initiative or GLRI, has provided approximately $1.96 billion toward restoration efforts since the initial year of funding in fiscal year 2010. In the current fiscal year, the GLRI receives $300 million in funding. The President's fiscal year 2016 budget requests $250 million for the GLRI. Given that the EPA is the lead Federal agency implementing and administering the GLRI, how is this proposed $50 million decrease expected to impact the EPA's efforts to restore and maintain the chemical, physical, and biological integrity of the Great Lakes Basin ecosystem? Ms. McCarthy. First of all, let me thank you for your service on the task force, a significant amount of your time I know is spent here. There were some very difficult decisions that needed to be made in the budget, and I do recognize that any decrease will have to come with a prioritization among the agencies on what is focused on. I also recognize that this is an aggressive schedule of work to get done and a lot of needs. I think we will have to work with the agencies and also with the task force to make sure we are prioritizing resources effectively. Mr. Joyce. It just does not make much sense to me that our President, being from Illinois, a border state of the Great Lakes, initially this being one of his projects, and we realize the funding should be $475 million, and last year he proposed $275 million, this year $250 million. We rely on the bipartisanship of this committee and the people who care about the Great Lakes to continue to come up with the funding. Obviously, they want to reprioritize that somewhere else because Secretary Jewell told us yesterday these budgets are set to their priorities, and I think the Great Lakes should be the number one priority. I do not think of it is as a lake or a series of lakes. I think of it as a national treasure that we need to take care of. Ms. McCarthy. I understand your feelings. Mr. Joyce. Is the EPA prepared and able to use GLRI funds, if needed, to support key actions to prevent Asian Carp and other invasive species from entering the Great Lakes from the Mississippi River Basin? For example, if funding for the Army Corps of Engineers in fiscal year 2016 is inadequate to move forward quickly with the development of near term control measures at the Brandon Road Lock and Dam, would GLRI funds be provided to supplement their budget for this work? Ms. McCarthy. We could certainly talk through that with the task force. Mr. Joyce. Let's move on to another Great Lakes issue, if I could, the algal blooms. Can you talk about specific provisions within the budget request that will help the EPA prevent, or respond to, the contamination of drinking water from harmful algal blooms, such as occurred last summer in Toledo, Ohio? Ms. McCarthy. Yes. I do know the agency is actively looking at this issue in a number of different ways. We are looking at a cross agency strategy to identify and map where harmful algal blooms are already happening. We are taking a look at what source waters those harmful algal blooms might impact. We are taking a look at the treatment facilities at those source waters so we can make sure that drinking water systems are highlighted. Needs for upgrades. As you know, we have asked for a significant amount of state revolving funds to be able to support drinking water. For the first time in I do not know how many years, drinking water is actually a larger portion of the budget on SRF than wastewater, than clean water activities, because we need to address them. We are also looking at some guidance for individual communities on what the levels are they should be testing to and thinking about, and we are working with Congress as well on a number of other initiatives that we need to undertake. I think this is a new phenomenon and one that we are getting our arms around, but we are trying to be as aggressive as we can not just in responding to where the blooms are happening but understanding what is the cause, and getting at the root cause of those problems, which is very complex in some areas. DRINKING WATER PROTECTION ACT Mr. Joyce. This week, the House passed the Drinking Water Protection Act, with my support, by a vote of 375-37, which in my two years around this place is big numbers. This bill would direct the EPA to develop and submit to Congress a strategic plan for assessing and managing risks associated with cyanotoxins in drinking water provided by public water systems. What is the current status of efforts to establish national health advisory levels for microcystin and other cyanotoxins? Ms. McCarthy. Yes. We are looking at developing an advisory now. As you know, when the incident in Toledo happened, we were relying on the World Health Organization, and the standards are advisories that they have. We think we can do a better job at that and continuing to advance the science moving forward. We are looking at that now. The development of an actual water quality standard is something that I know folks are anxious about. It is quite a lengthy process. We need to just keep moving forward and provide advice and look at what we do with our states and our local governments moving forward. Mr. Joyce. Thank you. I was wondering if I could yield some of my time to the distinguished lady from Minnesota if she has further questions. Mr. Calvert. Actually, I was going to recognize her right after you. Ms. McCollum. I will under his time. Mr. Joyce. Thank you. I yield back. Mr. Calvert. Ms. McCollum. CLIMATE CHANGE AND NATIONAL SECURITY Ms. McCollum. Thank you, Mr. Chair. I do have a question, but I am going to do a little bit of a redirect. I am going to quote from the President of the United States. ``No challenge poses a greater threat to future generations than climate change.'' When we take the President's words, I believe we should take them in the full context. As a member of the Defense Committee, I would also quote the Department of Defense, page one of their climate change adaptation roadmap, ``Climate change will affect the Department of Defense's ability to defend the nation and pose immediate risk to the United States' national security.'' There is a whole report. Another item I would quote from is from Navy Admiral Samuel J. Locklear, III, in an interview at a Cambridge hotel on a Friday in March, 2013. He is talking about climate change. ``This is probably the most likely thing that is going to happen that will cripple the security environment, probably more likely than any of the other scenarios we talk about.'' Our military along with the President does realize that if we do not address climate change, for future generations, it puts us in a very, very dangerous place with our national security. BROWNFIELDS Let's go back to today. We know you have a budget that is below 2005 levels, so this is not an extravagant budget or anything like this. It is below 2005 levels. I want to talk about 2005 levels and Brownfields, because this is not an extravagant budget. Brownfields' redevelopment benefits communities. We know it enhances our economic ability to grow, retain jobs, and create new jobs. I am pleased that you have $110 million for Brownfields' state or tribal grants. This is, to quote one of the other members, large. This is the largest Brownfields' request under this Administration, but here again, the total budget for the EPA is below 2005 levels when adjusted for inflation. Here is my concern. There is an estimated 450,000 Brownfields in this country, and the EPA, with the funding that it has, has the result of only 118 clean ups per year. This is a terrible ratio, and you are working within the budget constraints that you have, but many of the states, communities, and tribes that I work with and hear from all around the country are really eager to redevelop. This increase is a good start, but if we do not really jump start this, how do you envision the EPA to ever facilitate reducing this backlog in Brownfields and putting America's lands back to work for good American jobs for families? Ms. McCarthy. I think you are raising a very important question because our Brownfields' funds have been extremely important for economic development, not just in our urban areas but our rural communities. I think the challenge is that many of us spend a significant amount of our Brownfields' resources to do assessments and plans. It is carrying out the clean up efforts associated with those that are most challenging. That is why in fiscal year 2016 we are requesting a bump up of $30 million to $189.1, but a total of $49.5 million has been requested to support approximately 150 state and tribal response programs, of which a $1.7 million increase from fiscal year 2015 will be used to prioritize efforts to small and rural communities, as well as funding for new tribal grantees. We are doing what we can, but you are absolutely right, the challenges are large, but we are trying to find ways in which we can coordinate our funding most effectively and not just identify the problems and solutions but bring them to the table. Ms. McCollum. Are you waiting for Mr. Rogers to come back or are you getting ready to wrap up? Mr. Calvert. I am going to ask a question, too. LEAD PAINT Ms. McCollum. I had another question because it comes up and is something I think we would all like to see solved and that is lead paint. We know how dangerous lead is. It affects every organ, it affects the developmental abilities of our children. People want, to shorthand it, to get the lead out. We do want lead to be removed from the environment in which our children are. But there is so much confusion in the information surrounding the lead renovation, repair, and painting rule. There are testing kits, and certification of who can remediate lead. But people are confused about it. If a rider prohibiting ``lead-safe'' progress were to be enacted, I think it would really impair your work to certify workers, to do training and outreach, to work with states in doing it. What the heck is going on with the lead kits? Are the lead kits safe to use? Do they really let you know what is going on? Quite frankly, I think if this is confusion, we need to end the confusion. We need to figure out how to stop this constant rider from popping up when I think there is consensus on both sides of the aisle. We do not want our children exposed to lead. How can you help us clear this up to stop these riders? Because if they were to be enacted, I think would have an outcome that people would not want with our children being more exposed to lead. Ms. McCarthy. Ranking Member, I think everyone agrees that we need to address lead paint and we need to keep our kids safe. That is something I think we can all agree on. The agency did create some alternatives to help ensure that the lead renovation, repair and painting rule could be done and carried out in a cost effective way. There are now two currently available test kits. Those are an opportunity to screen so you can understand and a contractor can easily detect whether or not there is any opportunity for lead paint to be there so they can properly conduct their work. The second thing we did was we provided an alternative to collect paint chips, so they could then take it to an EPA accredited lab, which is also a cost effective way to understand and detect whether there is lead paint and then to subsequently make sure you are protecting kids as it is being removed. The third was you could hire a lead paint inspector. There is an x-ray florescent analyzer, which is something that can be brought into the home and easily detect where lead paint exists. We think we have provided a range of cost effective alternatives for implementing this rule, and we think it is extremely important for us to move on and provide stability here to the contractors that are trying to do the right thing and to families that are trying to protect their kids. Ms. McCollum. Does the rider shut down your ability to move forward with training, if it was to go on? My understanding is it takes us backwards. Ms. McCarthy. The ones that we are familiar with--I am hesitating because I do not know the exact one that might be on the table, but the ones that have been proposed in the past would preclude us from moving forward. Ms. McCollum. Would you provide us in writing those three alternatives and also where the EPA lead testing facilities are, if someone can mail something in, and what the cost would be to use the lab? Ms. McCarthy. Absolutely. Ms. McCollum. Thank you. Thank you, Mr. Chairman. Mr. Joyce. Can I piggy back one question on Brownfields? Mr. Calvert. Mr. Joyce. BROWNFIELDS Mr. Joyce. Can you tell us what plans you have to leverage the funding for Brownfields by partnering with states, municipalities, and private investors, to further advance the clean up efforts? Ms. McCarthy. We tend to almost always leverage our Brownfields' funds. If you will give me a second, I will see if I can identify the numbers. I guess I do not have it with me. I will follow up with you and let you indicate--the thing that we have done a study of, which may be of interest to you, is that when Brownfields have been redeveloped and also when Superfund sites have been turned over, we have some wonderful economics of what it does for the area in terms of economic vitality, what the subsequent investment is in that area and what it provides. I am happy to share that information with you, and I apologize that I do not have it on hand. Mr. Joyce. No worries. I have seen this work in my own district, and I would be glad to emphasize that to the people where the sites exist now as to how they could work in conjunction with you to clean up those sites. Ms. McCarthy. That would be great. Thank you. Mr. Joyce. Thank you. I yield back. CALIFORNIA WATER Mr. Calvert. Everybody up here knows that I cannot have a hearing without bringing up California water. This is my opportunity. Ms. McCarthy. I want it noted that it was not me who groaned. Mr. Calvert. Administrator, I am sure you are well aware that my home State of California is suffering the most severe drought conditions the West has faced in recent years. California's biggest water challenge is in Northern California where the rivers of the Sierra Nevada merge into the Sacramento/San Joaquin Delta, the hub of the state's water system. State and water projects draw supplies that travel through the Delta to provide for 25 million people, three million acres of agriculture, 750 different types of plants and animals, and California's $1.7 trillion economy. Over the years, the Delta's ecosystem has deteriorated, and its 1,100 mile levy system is increasingly vulnerable to failure caused by earthquakes, floods, and other forces of nature. The decline of the Delta's ecosystem has led to historic restrictions in water supply deliveries, and it cannot be stressed enough the pressing need to improve California's water reliability. Absent a new course of action, we will have to steal all the water from Idaho. No, that is not the case. Who put that in? Ms. McCarthy. I wrote that down. Mr. Calvert. Absent a new course of action, we will have an economic and environmental collapse in California, and that is true. In response to this need, Federal and state officials, water agencies, and other interested parties have undertaken comprehensive efforts to fundamentally and systematically improve both the state's water reliability and restore the Delta's ecosystem. This effort is the Bay Delta Conservation Plan. Today is the result of more than seven years of collaboration, scientific analysis, policy review, public input. The BDCP would simultaneously protect California's water supply, improve the Delta ecosystem, through what would be the largest ecosystem restoration project on the West Coast, remove pollutants, invasive species, other stressors harming the Delta environment, and create up to 17,000 jobs. More than 400 public meetings and briefing's have taken place over the past seven years, and in July of 2014 we saw the close of a 228 day public review and comment period on the draft BDCP and its associated environmental impact report. In August, your agency raised last minute concerns that have now delayed the progress in getting closure on a new course of action. This is very disappointing to all the stakeholders that have been participating for many, many years. Administrator, my question for you is does your agency understand the urgency of the situation in the Delta, because without the strategic investment in the Delta, the water supply and ecosystem will continue to deteriorate and jeopardize the delivery of safe, reliable drinking water to 25 million people. Is your agency actively working along with the other lead Federal agencies, the National Marine Fisheries Service, the U.S. Fish and Wildlife Service, and the Bureau of Reclamation, to resolve the BDCP concerns in a timely manner? We need to get this done. Ms. McCarthy. Yes, sir, I do understand the seriousness of the issue, and yes, we are working very closely with all of the agencies engaged to make sure that the supplemental draft EIS resolves some of the issues that have been raised, frankly, not just by EPA but by many other agencies. We are confident we can do that and we are at the table in the most positive productive way we can be, and we will stay there until we get these issues resolved. Mr. Calvert. I have heard from a number of critics, and they felt somewhat that they have had this open process for a number of years, EPA has been at every single meeting, they thought everything was merrily going around, and then all of a sudden, the rug was ripped from underneath the process, and it just kind of halted progress on something that is significantly important to the State of California. Ms. McCarthy. It is not often that the agency sees the lead agency developing an EIS, a draft EIS, to agree that a supplemental was necessary. I do think it was not just EPA but other agencies that identified there were some gaps in the data or in the systems. I will make sure that the agency offers no surprises moving forward. We want to be at the table and we want to be participating. I think our region out there feels like they have been doing that all along, but if there is any question of that, you can be assured that I will be watching it as well. Mr. Calvert. Thank you. Mr. Simpson. REGIONAL HAZE Mr. Simpson. Thank you, Mr. Chairman. Just for the benefit of my good friend from Minnesota, the Ranking Member, I just wanted you to know that one of our Admirals, the Chairman of the Joint Chiefs of Staff, Admiral Mullen, said the biggest threat this country faces is the debt and deficit that we currently have. That is the challenge that we face. We can all point out issues that need to be addressed. The question is how do you get the money and so forth to do it? Which is a primary concern of this budget--$71 billion, is above the budget caps. Let me ask you about three questions that deal with this budget. The fiscal year 2014 omnibus included directives to the EPA to solicit comments from the states and stakeholders and update the air modeling tool, CALPUFF, and the cost manual, which are the two components that factor into EPA's decision on regional Haze regulations. Can you update me on steps the EPA has taken to update this modeling tool and the cost manual? Ms. McCarthy. I am sorry. I do not have all the details on that. I certainly remember from the time that I was the AA for Air that we started on both of those projects moving forward. I know we have been working hard on the cost manual in particular, but if it is okay with you, Congressman, I am happy to send you back an exact status on both of those. Mr. Simpson. Okay. Ms. McCarthy. As soon as I can. IRON AND STEEL/EPA DRINKING WATER Mr. Simpson. Secondly, the budget removes the Fiscal Year 2015 appropriations language, applying American requirements for iron and steel used in EPA drinking water, state revolving loan fund projects which is the Aderholt-Visclosky amendment. Why? What are the problems that this presents? Ms. McCarthy. I will let David approach this. Mr. Bloom. We traditionally exclude language added by Congress such as that. WORKFORCE Mr. Simpson. I am not sure that is the answer you want to be giving. But I suspect that there will be efforts to, and probably successful efforts to put the language back in. And I understand that it causes some challenges because there are some things that are difficult to get from America and so forth, and you have to exclude them and all in that kind of process. But I understand that. I am sure that will be an effort of this Committee. The other question, your budget assumes a relatively flat workforce, but it does shift some employees around. The budget proposes shifting or creating 65 new FTEs for greenhouse gas regulatory work and 24 FTEs that are attorneys to assist the legal and regulatory needs. Why is that? Ms. McCarthy. Actually, these are not litigation attorneys. Again, these are attorneys that we feel we need to properly do our core work. There is a legal review of permits when they go out. There is a legal review of plans that need to be approved by the agency, and we have heard from states over and over again, as well as many of you, about getting quicker in terms of the work we do. We have been doing an exercise within the agency to look at our decision-making processes and find where we need to add resources so that we can be assured of getting them done in a quicker way, and many times it is because our attorneys are not available and focused on some of these key deliverables that we need for the business community and our states. We are trying to do what we are supposed to do, Congressman, which is to expedite things like this so that we can show that we are working effectively and efficiently. It is a switching of resources. But remember, I cut down the FTEs in the agency considerably. We had in excess of, I think, 18,000 staff at one time. You know, I am down in the 14,000s trying to work my way back up to the 15. So I am trying to do everything I can to expedite. And when I say that I need resources from the attorneys, it is because it is where we see the roadblocks happening and where we see the shifts, not because we are using them for added litigation purposes. Mr. Simpson. Well, you have been successful. You are back up to 15,000 now, 15,034. Ms. McCarthy. Well, that is what we can--that is our ceiling that we are looking at. It is not where we are hiring. Mr. Simpson. But you can assure us that if we allow the shifts to occur, and you get the 24 attorneys and 65 greenhouse gas regulatory people working in that arena, that we can speed up the permitting process and you will be able to demonstrate that next year when you come back? Ms. McCarthy. We will give it our best shot. I do believe it. And I think we have already--we will be able to show some really added expedited scheduling for what we do just working with the states and making things work. I am trying not to ask for more people. I am trying to be able to shift resources effectively to where I see efficiencies can be had. INFRASTRUCTURE Mr. Simpson. And one final question if I could, Mr. Chairman, and that is your budget proposes, during a time when we have asked for the third highest EPA budget in history, which is what this budget request would be, proposes to reduce the Clean Water State Revolving Fund by $333 million and increase the Drinking Water State Revolving Fund by $297 million. So there is a net decrease of funds in the State Revolving loan funds. I have got to tell you, I think one of the biggest challenges we face in this country now is the infrastructure of the water and sewer systems in this country. Engineers will tell you there is roughly a $700 billion backlog out there. What we put in at the federal level, plus what the states add to it and local communities means that if we kept doing that, at this rate we could address the backlog that exists in roughly 100-150 years. That is the backlog that exists today. Somehow this agency needs to be at the forefront of deciding how we are going to address that need because the state revolving loan funds, while a great idea when they started, are insufficient to address the need that exists out there. Would you agree with that? Ms. McCarthy. I think that we see ourselves facing more and more of a backlog of work that needs to get done. Specifically, I know that the backlog on the drinking water is probably $348 billion, and the need on the clean water SRF is $298. I think it's clear that the SRFs are not the only tool that we need to bring to the table. So we are also standing up that new center that is going to look at water, infrastructure, and resiliency financing, because we need to bring public-private partnerships to the table. The private sector benefits as much as we do when you look at how much water the private sector utilizes. And I am not suggesting that we do not want them to have it; just that we cannot always rely on public sector funds to get this done, even though we do our best to leverage those funds. And I also do not want you to think that the rest of the agency is growing while the SRF is staying more stagnant than you would like. I realize that when you look at it dollar for dollar, you may be looking at the third largest budget, but if you look at this, it does not adjust for inflation at all. And if you look at our 2016 total budget, if you adjust it for inflation, it becomes the ninth largest over the last 12 years. And you know what has happened over the last 12 years. The requirements for EPA and the responsibilities we have been given by Congress over the last nine years have been considerable. So we are looking at the new challenges. We are looking at the new contaminants and the new challenges we are seeing moving forward. And this is not a budget that I think is overly inflated in any way. And in fact, I think it is a reasonable approach to trying to get us on a trajectory where we can do what Congress gave us to do in a responsible and efficient way. Mr. Simpson. Thank you. Thank you for being here today and for your testimony and putting up with our votes in the middle of it all. Ms. McCarthy. That is quite all right. Mr. Simpson. Thank you. Ms. McCarthy. Thank you for the opportunity. Mr. Calvert. I thank the gentleman. And we certainly thank you, Administrator McCarthy, for coming here today. I am sure there are a number of other questions that need to be answered for the record, so we will keep the record open for five days. And we look forward to your timely responses to those questions. Ms. McCarthy. Thank you so much. Mr. Calvert. And we will need to work together to find out what your priorities are as we move forward because, obviously, your budget request is not the budget we will be working under, so. Ms. McCarthy. It would be my pleasure to continue the conversation. Thank you. Mr. Calvert. So we will be getting our allocations, I suspect, late March, or early April. We will have to meet again after that and find out how we are going to approach all of this. Again, thank you for your courtesy, and we are adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Friday, February 27, 2015. BUREAU OF INDIAN AFFAIRS BUREAU OF INDIAN EDUCATION WITNESSES HON. KEVIN WASHBURN, ASSISTANT SECRETARY, INDIAN AFFAIRS, DEPARTMENT OF THE INTERIOR CHARLES ``MONTY'' ROESSEL, DIRECTOR, BUREAU OF INDIAN EDUCATION, DEPARTMENT OF THE INTERIOR MICHAEL BLACK, DIRECTOR, BUREAU OF INDIAN AFFAIRS, DEPARTMENT OF THE INTERIOR MELISSA EMREY-ARRAS, DIRECTOR, EDUCATION, WORKFORCE, AND INCOME SECURITY, GOVERNMENT ACCOUNTABILITY OFFICE Mr. Calvert. The Committee will come to order. We have a number of appropriation hearings going on at once, and so we will have other members coming in at various times. I know Defense has a hearing, we just left, to come over here. Opening Remarks of Chairman Calvert Good morning, and welcome to today's hearing on the fiscal year 2016 budget proposal for Indian Affairs. This is an area within the subcommittee's jurisdiction which is a nonpartisan funding priority, and together we have been making a concerted push over the past several years to make incremental improvements in the lives of American Indians and Alaska Natives, particularly in healthcare, education, and law enforcement. This has been a partnership. I want to thank several of our key partners for being here today to testify. Our first panel includes Kevin Washburn, Assistant Secretary of the Interior for Indian Affairs; Michael Black, Director of the Bureau of Indian Affairs; and Charles ``Monty'' Roessel, Director of the Bureau of Indian Education. Gentlemen, thank you for being here today. For the past few years, at this subcommittee's request, the Government Accountability Office has been another key partner on Indian education matters. What started in 2012 with a seemingly simple question of comparing per-student funding, inside and outside the BIE system, has grown into something much more complex. The GAO is currently in the middle of a study on BIE facilities condition and management, and I have asked them here today to be on the second panel and to give us an update on their progress. Before we begin, I will just make a few comments about the fiscal year 2016 budget proposal for Indian Affairs. This Administration has put its partners on this subcommittee in a tight spot, by raising expectations throughout Indian Country that we will struggle to meet. The President's budget disregards the spending caps that he signed into law. That is how he is able to propose a $323 million increase for Indian Affairs and a $461 million increase for the Indian Health Service without an offset. But current law requires discretionary spending to stay relatively flat in fiscal year 2016 in comparison to 2015. So this subcommittee's challenge will be to find the money from within, to pay for the ``have-to do's'' and make progress on the ``should-do's,'' all without cutting the popular ``nice-to-do's'' by so much that we cannot pass a bill. Mr. Calvert. Before we turn to our first panel, let me first ask our distinguished ranking member, Ms. McCollum, for any opening remarks she may wish to make. Opening Remarks of Ms. McCollum Ms. McCollum. Thank you, Mr. Chair, and welcome to the panel. I appreciate all of you being here to discuss the fiscal year 2016 budget request for the Bureau of Indian Affairs and the Bureau of Indian Education. While Native American programs in this budget request are a trust responsibility of the Department of the Interior, I believe that they are a moral responsibility for each one of us, and I am pleased to see the increases proposed in this budget to help advance the social and economic well-being of Native Americans. I especially want to commend you on the additional funds aimed at improving Indian education. Mr. Washburn, last August you and Secretary Jewell visited, as we affectionately call it, the Bug School on the Leech Lake Reservation in Minnesota. You and the Secretary saw firsthand the deplorable conditions that these students and faculty have to put up with every day, and that is why I am very pleased to see the proposed $58.7 million increase in the Indian Education School construction and appreciate the mention of the Bug School in Secretary Jewell's testimony on Wednesday. It meant a lot to those children. There is a lot to like in this budget. It brings broadband to all BIE schools over 3 years. It funds contract support costs fully. It increases Native American scholarship, expands social services including Indian and child welfare programs, increases energy development in Indian Country, and enhances tribal law and order. Now, my enthusiasm for these increases is tempered by the fiscal and political climate in which we are operating. On Wednesday, our chairman, Chairman Calvert, told Secretary Jewell, and I think he wisely did so representing the views within his caucus, that many of the budget increases that the Secretary was proposing were unattainable in the current budget situation. Now, I believe President Obama has offered a plan to eliminate sequestration and get us out of this fiscal straitjacket that the Budget Control Act puts us in. Now members on the other side of the aisle may not support the President's plan, but I do believe, as the chairman said, that it is incumbent on all of us to address these problems. I for one do not want to have to say that we cannot have these needed increases for Indian Affairs or that we can only do them with radical cuts to other important programs in the Interior and Environment appropriations bill. This is not a process I will be able to support. But I want to be clear: This is not an extravagant budget. Like many other parts of the Interior budget, when adjusted for inflation, we are currently spending on Indian Affairs less than we did in 2005. In fact, even with the proposed increases in Indian construction, we would be spending just half of what we spent on construction in 2005. I have always appreciated and I am very proud of the bipartisan manner in which this subcommittee has worked together to address Native American needs and programs, and we work together to strive for solutions that enhance and protect Indian self-government and self-determination. So Assistant Secretary Washburn, I think you would agree, money alone will not solve this problem in Indian Country but I believe that you understand that there need to be significant reforms in the delivery of service to Native Americans. So I appreciate you and the other witnesses being here today. I look forward to your insights on these important matters. I look forward to your testimony, and Mr. Chairman, I look forward to us working together to find solutions. Mr. Calvert. Absolutely. Thank you. Mr. Washburn, you are recognized. Mr. Washburn. Thank you, Chairman, Ranking Member, former Chairman, Mr. Cole, and other members. I want to thank you for your support. Assistant Secretary Indian Affairs Opening Remarks I have to begin by thanking you really seriously. In recent years, this committee, on many issues, has been out in front of the Administration on leadership and support for Indian Country, and the roughly 8,000 employees of the Bureau of Indian Affairs and the Bureau of Indian Education and my own staff thank you for your support of our work. It has meant a lot to us and it has meant a lot to everyone in Indian Country. I want to tell you, this year the President's request matches your own leadership in Indian Country. The President's budget request totals $2.9 billion for Indian Affairs programs. That is $323.5 million more than the current enacted level. I thank you for your past support and hope that you will continue your strong bipartisan support for Indian Country. You and I know that many of the programs, in fact a majority of the programs, are actually run by tribes out in Indian Country. About 68 percent of this budget will effectively go directly to tribes so they can run our programs because they do a lot better running our programs than we do in many respects. Our Federal appropriations have sometimes run on a time principle which is slow. It is what some of my friends in Indian Country have started calling Federal time. We are often late in doing our jobs, and let me own a lot of that on our end because after the money gets apportioned to us, we are sometimes slow getting it out the door. My Deputy Assistant Secretary, Tommy Thompson, is working really hard so we can get the money out faster. Part of that is on Congress, though. This year we did not get a fiscal year budget until the middle of December. When that happens, when we have a continuing resolution and then we get a budget, we have to do everything twice, and sometimes three times. It really helps us if you will have a budget, even if is not everything you want, ready to go October 1 and we do it once because that makes life a lot easier for all those people who have to push money out every time there is a change in the budget. So I encourage you and urge you to try to help us get a budget out once. It will be good for Indian Country. Let me give you some good news about this year's request. And I would like to help this subcommittee out of that tight spot that you mentioned, Mr. Chairman, when you gave your opening remarks. The President's budget supports a real all-of- government approach to Indian Country and so I want to talk first about what is not in the Indian Affairs budget. Let me tell you how this came about. Indian country is proposed to get a lot of new funding that helps us but it is in other parts of the Federal budget. President Obama set up a White House Native American Affairs Council and appointed Sally Jewell as the Chair of that council. One of the first things she did was to say to OMB we need to be breaking down silos in the Federal government. One of the best places we can do that is with budgeting. So for the first time in history, this year as we prepared our budget, OMB brought multiple agencies together and started talking about the President's priorities in Indian Country and asked how can we all work together to meet them. For example, one of the things we got out of that and something that helps my budget very much, or helps the problems I am trying to address very much, is funding for teacher housing. There is $10 million in the HUD budget for teacher housing in the President's proposal which will not come to this subcommittee but nevertheless will help us meet these goals. Some of you were at the State of the Union address. I think I saw you on TV. One of the things the President's request for community colleges does is support tribal colleges. The President has asked Congress to provide for tuition for 2 years for community colleges which will include tribal colleges, so that is a huge boost for tribal colleges. That funding comes out of--well, Mr. Cole, I am sorry to put that on you but I think that comes out of your subcommittee's budget. But we are trying to spread this around. We are trying to take care of these priorities by looking beyond just the Indian Affairs budget. One other big avenue in that respect is the Department of Education. Arne Duncan is proposing to change some eligibility rules for their early childhood education programs. It used to be that only states could apply for the money in those programs, and he is changing those eligibility rules so tribes can apply for those programs too, and you all know how important early childhood education is. I know you personally know that. So tribes will have more access to that kind of funding so it is not just in our early childhood development program line but there will also be Department of Education money. Those are all things that are not in our budget but are nevertheless very, very helpful. The funding requests are not in your specific committee assignments with the exception of Tom over there. We put a lot on his plate. Our budget request for the Bureau of Indian Education, which is really our highest priority this year, would increase our budget to about a billion dollars. A lot of this is for school construction but it is for a lot of other things as well. We are working diligently to make the Bureau of Indian Education more effective. The Secretary more than a year ago started an education study group and made me the Chair. Mr. Roessel has been on that group as have several other people including one formerly from the Department of Defense which recently upgraded their schools and someone from the Department of Education. We have a really good team working on how we can improve education. There are a lot of increases in the BIE budget proposal but we are also trying to clean up the house at the Bureau of Indian Education so it works better. I will not go through line by line but there is a huge increase requested to support a better performing BIE, to ensure that we can spend funding properly, and make things better for Indians on the ground. I think you all know the importance of contract support costs so let me just quickly mention the Appropriations Committees' report language which alluded to mandatory funding for contract support costs. We are working with our authorizing committees to try to get that off of the Appropriations Committees' plate and into a different pot so that it makes it easier for tribes to count on that funding. I know that is a big lift. I know it needs your support. I know it is not in your portfolio but it needs your support. We have a bunch of specific things in the budget that are very, very important. For example, the budget includes a $4.5 million increase to establish an Indian Energy Service Center. We have heard for a long time that we need to help tribes with permitting which cuts across several Interior agency lines, and so that $4.5 million request is really important to support not just us but also the Bureau of Land Management and other agencies that have so much work to do in Indian Country. I do not want to go on and on and on and filibuster this thing so I am going to stop here. I have Director Mike Black and Director Monty Roessel with me, and I will be asking them to help me answer your questions because we want to make sure you get good answers today. Thank you. [The statement of Kevin Washburn follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Calvert. Thank you for your testimony. INDIAN AFFAIRS ORGANIZATION With regard to the 183 elementary and secondary schools in the Bureau of Indian Education system so we can direct today's questions accordingly, please differentiate and clarify for us the various roles and responsibilities of the Assistant Secretary's office, the BIA and the BIE. Mr. Washburn. Okay, Mr. Chairman. I could answer that question in about 3 hours, but what I have done is---- Mr. Calvert. How about 3 minutes? Mr. Washburn. Fair enough. That is a big part of the problem, frankly. We have given you this 2\1/2\ inch budget justification that hopefully is more than a doorstop. There is an org chart in this book that partially answers that question. The problem with fully answering that question is that Indian Affairs is really evolving right now because we have published a blueprint for Indian education that will change these things dramatically, and hopefully align accountability a little bit more clearly with powers and responsibilities in Indian Country. So we are working really hard on that. On a weekly basis we have been having big meetings of our team that is trying to implement the blueprint. There are a lot of subcommittees to that team too. I think some of those changes are going to require reprogramming requests coming over to the committee. It is difficult to change anything in the Federal government. It takes a lot of ``mother, may I's'' and many people can veto it, so it has been, I have to say, one of the most challenging things I have ever seen in my life trying to get this done. We are trying to realign the Bureau of Indian Education, the roles and responsibilities there, as well as within the BIA to be more supportive of education. It has been really challenging but it is very much an evolving process right now. BOND FINANCING FOR BIE SCHOOL CONSTRUCTION Mr. Calvert. While we are on the subject of education, we were out recently in Navajo country and Hopi country, and we saw the condition of some of the schools and obviously throughout Indian Country. It is one of the big issues that is obviously in need of addressing. Ms. McCollum has a school that desperately needs to be replaced. But this list is a lot longer than just those schools. And we had a discussion about thinking outside the box about how--we had a similar situation a number of years ago with Department of Defense schools' condition, and we came up with an interesting way to finance this. As you know, most schools in America are not paid for on an annual budget process. They are paid through bond financing over a 30- year period, and how we can potentially set up a financing mechanism where we do not have to account for the full dollar amount but be able to expand a number of schools that we are attempting to renovate and replace, and get maybe some expert outside financial help to come up with a model maybe looking at the Department of Defense and get a resolution to a large number of these schools quickly rather than just having to come back here hat in hand year after year chipping away at this iceberg. Have you put any thought into that? Mr. Washburn. Mr. Chairman, yes, a little bit, and you raised that with us, and we have been looking into it. We talked to the folks at the Department of Defense that assisted with that. You know, they did a big makeover of their schools to the tune of, I believe in excess of $1 billion and perhaps in excess of $2 billion. They looked at some similar financing arrangements. When we talked to the person on our staff who worked on the reconstruction of defense schools, she said, there are 17 different reasons why alternative financing models do not work. We are still looking at it, and we have raised it with OMB as well. We do want to be creative here, but we have a different problem than what state schools have because we do not have a tax base for floating bonds and that sort of thing. We want to commend you for your creative thinking around these things and we need to be doing creative thinking too. So if you keep putting those things on our plates, we will keep considering them. Mr. Calvert. I am going to look into this more because I think you have got to find a way to yes on something like this. There has got to be a better way than the way you are doing it now. That is not working. It will be 100 years before we take care of the necessities that you have on the brick-and-mortar side. I mean, that does not address the other issues you have in education but certainly the brick-and-mortar issue has to be resolved. From a business guy's point of view, I would think that would be a relatively simple thing to do if you focus in on it, and understand how you do it and try to get people to yes to get this thing fixed because as Mr. Simpson said, some of these schools are just beyond an embarrassment. Mr. Washburn. They are, Chairman. On the Defense side, they largely ponied up the money to do it and they did it over multiple years. That is kind of what we have in mind, that it is probably a 5- to 6- to 7-year plan for reconstructing our worst schools, and then we definitely need more attention to maintaining those schools, the preventive maintenance-type stuff. Mr. Calvert. Well, I have some other questions but I am going to turn it over to Ms. McCollum right now and we will get to the panel. Ms. McCollum. SCHOOL REPLACEMENT PRIORITY LIST Ms. McCollum. Thank you, Mr. Chair. Kind of following up on that, you just mentioned the increase for replacement school construction. Is that sufficient to finish up the priority list developed over a decade ago in 2004? Mr. Washburn. Yes, ma'am, it is, and it would also allow us to plan for those schools that will be on the next priority list so that we can be out of the gates with construction for the next fiscal year. Ms. McCollum. Well, I was pleased to see that, so that we have both lines moving forward, so I was happy to see that. What is the timetable for developing a new school priority list? It is something we are being asked all around Indian Country because we would like to know if we are going to have time to consider incorporating that preliminary funding into the bill that we are going to be working on here in this committee. I had a great conversation with Secretary Jewell and we talked about how you brought people in from DoD, from the Department of Interior Parks Service to help develop this list, so when do we expect to see it? Will we have a clear, understandable list of criteria that everybody can rally around? I am not being pie in the sky here, but is this going to be clear? Mr. Washburn. Well, the criteria was developed according to a negotiated rulemaking that we were required to do by Congress. We had a team put together a formula. The team was representative of members from Indian Country including Director Roessel in a former job. The formula was developed by a committee in all the best ways because it is widely representative. We are currently trying to make sure we have got good data to plug into that formula, and actually we are making great progress there. We certainly intend to have that list out this year. We probably will have it out this summer. I hate to make promises about anything that is not entirely within my control but we are working diligently to try to get that list out. I am responsible for holding that up because I did not want to put a new list out until we had made a commitment to all the schools that were on the 2004 list and got that done because I thought that that was really important before we start developing new expectations. JOHNSON-O'MALLEY STUDENT COUNT Ms. McCollum. All right. Well, as everybody here has been pushing, as you said, we need to get off of federal time on doing this. On the topic of schools and counts, another count we have been waiting for is the Johnson-O'Malley. Since I have been on the committee, the Johnson-O'Malley, is pending, it is coming, it is coming. So my question is, what is the time frame for that new count? But then I have a question about the counting itself. The Census Bureau is changing the way in which it collects its information, and I wonder if we had better census information for Indian Country, it would give you folks here at the table a much clearer picture and help us plan better for all your needs and services. So what has been your interaction with the Census Bureau, and whether it is Johnson-O'Malley or when I had the honor of being with Ms. Pingree at Beatrice Rafferty or whether we are in Hopi or Navajo Country? I mean, the principals there are saying that what you are projecting for enrollment, they know is wrong. So how do we get our counts straight? Mr. Washburn. Well, let me say this, and I am going to ask Director Roessel to address the Johnson-O'Malley question, but let me talk more broadly about the census question. Tribes don't fully trust the process that the Census Bureau uses. I think that the Census Bureau is the expert on these things and we have to work with the Census Bureau but we---- Ms. McCollum. But the new form does not ask the question, are you Native American. Mr. Washburn. Well, that is interesting, and we need to talk to them more about that. We have to work with Census because they truly are the experts. You all require us to be experts in nearly everything under the sun in Indian Country. Consequently, we do nothing well in Indian Country. If you ask us to be an expert in everything, we cannot be, and we will do nothing well if we are spread too thin. This is one of our great frustrations, and so we have to work with other experts in the Federal government like the Census. Let me turn it over to Director Roessel to talk about the JOM count. Mr. Roessel. Thank you. We just completed the JOM count for 2014. We are in the process of going out for consultation to tribes on JOM issues and a notice for the consultation has been published in the Federal Register. We are looking at two different things. One is, we have the count to talk about it: we have some discrepancies there. A lot of new contractors have submitted a count and some tribes or school districts did not submit a count. Trying to figure out why they did that and why they did not do that, is one of the issues that we are faced with. The other issue is how we distribute the JOM funds. That is part of the consultation process. Rather than make that decision ourselves, we want to go out to consultation and hear from the tribes and the schools on what is the best way to distribute those funds once we have them. In terms of the Census and JOM, one of the issues is that in the census in prior years race was self-identified. With tribes, there is a definition of who is an Indian. So there are two different criteria that are used. And so again, we want to take that question out to consultation and hear from tribes because there are a lot of definitions out there of who is an enrolled member. We are doing the consultations in April so we are moving on it quickly right now. Ms. McCollum. Thank you, Mr. Chair. Mr. Calvert. Thank you. Mr. Cole--oh, Mr. Simpson. Excuse me. Mr. Simpson. There is nothing more former than a former chairman. Mr. Calvert. Sorry about that. Mr. Simpson. No, no, no problem. I am going to submit several questions for the record dealing with questions from the Shoshone-Bannock Tribe in my district about the 6th grade expansion and grant programs. I appreciate your help in making sure that was accomplished. Currently we are concentrating on schools, and if you look over the last several years at this committee, we concentrated on healthcare because that was substantially under par and needed to be brought up. So we have increased funding for that and contract support. Now we are concentrating on schools while maintaining the concentration on healthcare, but that does not cover all the issues that need to be addressed. I am also concerned about the police protection and so forth on reservations, or the lack thereof and the incredible distance that area that tribes have within reservations and with very few officers and the danger that that causes and the violence against women that occurs on reservations. There are also alcohol problems that occur just on the border of the reservation when somebody sets up a community there and that causes problems. I still remember from when we were visiting, I think it was the Indian Reservations in South Dakota--and we talked to a police officer there--and they lost a police officer that had been on duty for too many hours and he basically fell off the road. So it is not to suggest that education is the only thing we have got to deal with. There are a lot of other things that we need to deal with also. SCHOOL REPLACEMENT PRIORITY LIST But we have been focusing on education, and the article that I mentioned the other day when Secretary Jewell was here about--it was in the Minneapolis paper that while I congratulated the Administration for their education budget, said that at this rate, it will take 30 years to address the needs that exist currently. We cannot wait 30 years. At that rate, we will have kids going to schools now whose kids will be going to schools that have not been fixed yet. So we have got to find a better way to do this, and what I would want is the Administration and the Department to place before us a plan of how are you going to replace these schools and bring them up to speed. As the ranking member, Ms. McCollum, has said before, and I agree with it, where you send our kids, the conditions of the schools that they go into says a lot about what we think about our kids. It also says a lot to them about what we think about them. So we need to do a much better job, and I think we have to have a shorter time frame in how to address these schools. I am going to be a little bit pie in the sky in that we have got to find a plan to do it and fund it, and I do not have the answer yet. I know the chairman has some ideas, but we need to start debating this, and how do you put together the priority list and how far down does it go. I want to know what the whole realm is, and I am not talking about building castles. I look at it sort of like when a school district goes out for a bond, they put everything out there that they would like and the voters reject it because it is too much, and then they come back and pare it down and say okay, what is necessary and I suspect if you put out a list of schools that need help, every tribe in the country would say we need this done and we need this done right. But how do you put together a priority list and how far down does it go? Because there are needs all across the country. Mr. Washburn. Well, Mr. Chairman, you are absolutely right. It is a real challenge. I want to thank you for all the support of IHS for the last few years because that has made a real difference in Indian Country. We need to make the same kind of difference in Indian education for sure, but we just do not have the resources to be fully holistic on everything we need to do. We need to focus on poor schools, but we also need to be a lot more strategic, and so one of the things we have added to our budget this year is a new line. We have always had the school construction line which we have never funded nearly enough, but it looks at whole campuses. We have added a line for facility construction. So for example, take the Bug School. The elementary school is actually fairly nice. The high school is deplorable, but we average out that school and consider what the condition of the campus is. We need to have the ability to be more strategic and go in and surgically improve buildings. When there is one bad building that is really bad, we need to be able to do that. We have over 1,700 school buildings and it is overwhelming. It is really overwhelming. But we have to be strategic. We do think it is a multiyear plan. If you gave us a billion dollars for next year to address all the backlog, we would not be able to spend it responsibly. We do not have the infrastructure to do that. And you know, we have to develop that infrastructure, and I think the GAO has pointed out well the things that we need to do. We know what we need to do. So we will not ask for you money that we cannot responsibly spend, but we do need to have a serious focus on this over the next 5 years, at least, and probably more like 6 or 7. Mr. Simpson. Well, what I would like to see before the committee is a plan to address it in as short of a time frame as we could do it. I realize it is not going to be done in one year but we could actually debate it here in committee and say okay, where are we going to come up with the funds and get it done. That is the only way you are going to do it. It is the same way we did it with healthcare. And then, as I said, there are a lot of different issues that need to be addressed. We cannot ignore safety on the reservations and many other things. DETENTION CENTERS Are we using regional detention centers, to any extent? And I know that it causes challenges because every tribe wants their own. Well, we cannot afford to build one everywhere. So it seems like it makes sense to me to utilize regional detention centers. Are we doing that at all? Mr. Washburn. We are doing that, and we are actually even using private detention facilities to some degree too because it is cost-effective. Let me say, if you look back over the last 10 years, we have rebuilt about 40 schools, and a lot of that was with ARRA money. DOJ and BIA have built about that many detention centers. Do you want to be building detention centers or do you want to be building schools? That is the issue that we face directly, and that is a challenge because you do need detention centers. You saw the one at Hopi. That one needs to be, replaced. However, how cynical do you want to be? Do you want to build schools or detention centers? Do you want to add anything to that, Director Black? Mr. Simpson. Well, let me just say before you do, one of the other issues is the education in those detention centers that we need to address. Mr. Washburn. Thank you, and we actually are working directly on that. We have put Directors Black and Roessel together to work on those issues, so we now have the BIE working much more closely with our juvenile detention centers. Mr. Calvert. Before I go to our next--Mr. Kilmer, one point that we saw when we were up at the Navajo-Hopi country is that there apparently was a Navajo detention center that was underutilized but they did not want to put the Hopis in the Navajo--from our perspective, that did not make a lot of sense but there may be other reasons. Mr. Kilmer. Mr. Kilmer. Thank you, Mr. Chairman. Since we are talking about detention centers, I actually had a question about that. I am concerned that the BIA budget does not request any additional funds for the operation of tribal detention facilities. We have got one that was located in my state operated by the Puyallup Tribe, and you know, despite the fact that the facility was constructed in close coordination with BIA and the Division of Justice Services, the tribe has only been given less than 30 percent of the funding needed to actually operate the facility, and frankly, had they known that it was going to depend on tribal resources to operate it, I am not sure they would have moved forward with it. So does the BIA believe that there is a need for additional funding for operations of tribal detention facilities? And, you know, after having supported construction, how do we make sure that this does not become a burden to the tribes that are operating them? Mr. Washburn. Congressman Kilmer, I am going to ask Director Black to address your question because that is entirely within the BIA, but thank you for the question. Mr. Black. Yes, thank you very much for that question. I think that is something we have been able to identify over the few years. Speaking specifically to the Puyallup facility, we have been working very closely with the tribe since they began the planning on this facility to identify funds, and quite honestly, you are right. We do have a situation when new facilities have come on board. I am going to talk to the past a little bit. DOJ was the one that was funding a lot of these facilities in the past. We had some coordination issues back then as far as ensuring that when these facilities were completed that we had identified the necessary funds to be able to staff them and operate them. We have been able, over the past 4 to 5 years, to work very closely with DOJ to bridge that gap and get a better coordination and identify funding. We have plussed up our detention center operations staffing over the last few years. We were able to get some additional funds in there to work with the different tribes. So it is an issue that we are well aware of and working on and look forward to working with you all. Mr. Kilmer. Thanks. I would like to work with you on that. ONE-STOP TRIBAL SUPPORT CENTER The BIA was looking to establish a one-stop tribal support center to serve as a gateway to services, and I appreciate that. I think that makes a lot of sense. I do want to pass on a concern that I have, and that is: it appears that one of the major features of the one-stop center is the development of an online portal, and a lot of the tribes in my district simply do not have access to high-speed broadband, and that is a big trouble in the rural areas. So what happens when important resources like that cannot be accessed by the tribes that are most in need? You know, how do we make sure that they are not missing out on some of these vital services? Mr. Washburn. Well, thank you, Congressman. That is a big part of our budget request. My budget is about $2.9 billion this year, and the entire crosscut across the federal government for Indian Country is about $20.8 billion. The programs that I have for Indian Country are about 14 percent of the programs for Indian Country by dollar volume. So what we have learned is that we do not need to be all in a bunch of different silos. So at least for tribes, we need to have one place where they can come and we can be the omnibus. We can make sure tribes know about all the programs. And I think you are exactly right. I think an online portal needs to be part of the solution but it cannot be the only solution. Tribes need human beings to help them navigate these things. So we need both of those things as a part of the system. It is going to be enormously challenging, not just because of these digital divide problems but the digital divide problem has plagued us in many areas and so a lot of our schools do not have good access. The Macaw Tribe in the State of Washington has had challenges and we have helped them modestly with funding. We have been looking for funding from the FCC and their E-rate program. We have been getting help from Verizon for computers and online services within schools. We have been turning over every rock we can because we do have to solve the digital divide problem. Thank you. Mr. Kilmer. I sure agree with you. Thank you, Chairman. Mr. Calvert. Mr. Cole. Mr. Cole. Thank you very much. Let me start by making you an offer. First of all, I appreciate the budget and I appreciate all the Administration is doing. Thank you for the very generous words for this committee, which, on a bipartisan basis, really has tried to prioritize these things under successive chairmen, no matter who was in the Majority. I think we actually have seen some tangible results from sustained attention, and if we can just keep that, and broaden that focus, hopefully we can do more. FEDERAL TRIBAL PROGRAMS COORDINATION Actually, if I can leave this subcommittee's jurisdiction to my own for a minute, we will later have a hearing on Native American programs that span Health and Human Services. I would very much like to work with you and OMB and whatever sort of unitary thing. I know Ms. McCollum has worked for many years to identify where the different streams of revenue are, and why can we not put them into an overall budget for Indian Country. So at least in the areas where I have jurisdiction, we are going to try to do that, and we want to do it obviously in cooperation with you. So if you can just help us figure out where these things are, we can bring them together. We are going to have, I think, a difficult appropriations process because, with all due respect, the President submitted a budget, on political assumptions in terms of what is going to pass, in terms of taxes, that are a fantasy. They are not going to happen. I mean, we are more likely to be flat-lined. That does not mean you cannot prioritize within that, and it does not mean later there cannot be a larger deal. That is what I would hope for is another Ryan-Murray-type situation. Mr. Calvert and I just came from Defense Subcommittee where I can tell you there is a lot of pretty worried people around that table about the consequences of sequester. It is not enough simply to write a budget proposal. You have to have a process to negotiate a settlement because it is not going to be what is envisioned in the President's budget. But again, the amount of money we are talking about in the jurisdiction I have is a comparatively small amount when you look at how vast it is. So if you would help us identify and figure out how to coordinate that, and as a matter of fact, if you want to come over and testify or Secretary Jewell did or you guys put your heads together, we would love to have that so it is not just a block here from this and a block here from that but we had somebody from the Administration's standpoint that talked about a unitary approach. Is that possible to do? Mr. Washburn. Mr. Chairman, absolutely. We have been noting so many places in Federal programs that tribes just are not able to participate in. Some programs serve states or other governments or other groups, so lots of places just need to make sure tribes are eligible to apply as well. We would be delighted to help you with that. Mr. Cole. Well, let us have that conversation. VIOLENCE AGAINST WOMEN ACT PROGRAMS One quick question, if I may. Could you give us an update-- I know we have a number of tribes that are working on VAWA that are trying to get themselves where they have the judicial capacity and the law enforcement. How are we doing where the rubber meets the road? Mr. Washburn. We have three tribes that have taken on pilot programs, but come the middle of March or so, every tribe in the country that wants to do it can start doing VAWA prosecutions in theory. They have to put a lot of things in place to do that, so we think that will go slowly at first because it is quite expensive at the tribal level. We have funding this year in our fiscal year 2015 budget, a million dollars, to help train tribal courts so they can handle this so they can, exercise this responsibility. So we are conducting a lot of training to try to make sure that tribal courts have the resources they need to put that into place properly. Mr. Calvert. We are going to recess for 10 minutes and return to this panel for Ms. Pingree, and then we will have our second panel. [Recess.] Mr. Calvert. The hearing will reconvene. Ms. Pingree, I will let you catch your breath, and you are recognized for your questions. Ms. Pingree. Thank you very much, Mr. Chair. Thank you for being here today and for your answers to the previous questions. BEATRICE RAFFERTY SCHOOL I appreciate we have had a lot of focus on Indian education, so I cannot help but ask a question about the Beatrice Rafferty School. I think you all know a lot of the background, and we are extremely excited for the Passamaquoddy Tribe that this money is funded and very grateful to the Committee for the hard work that they have done and the ranking member for coming up to visit and I think the Secretary was up there once. They have got a lot of really great attention, which they deserve, and hopefully as people have been talking about, there is going to be some real opportunities to clean up the rest of that list. I am going to try to ask this question as articulately as I can but I will admit, I am slightly confused myself, but here you are, so it is a good chance to ask the question. So the disappointing thing is that since the announcement was made in December, they have not been able to move forward with construction because they have not gotten a sign-off from either the BIA or the BIE, but I know you are going to answer that question to me, who actually gets to manage construction. But that said, from our conversations with the tribe, the representative that was supposed to meet with them has failed to appear in at least two meetings, so they have had a hard time just in the communication and contact, and the challenge is over the number of square feet in the school. So we have got an 11-year-old--this goes back 11 years, and the BIA or the BIE has said the current design is 5,000 square feet too large for the financial allocation. So the Tribe wants to negotiate this or at least have a conversation about it. My understanding is that from the federal government the argument that they do not have sufficient funds for that, but their opinion is this 5,000 square feet, which covers some curriculum areas, jobs for the graduates program, some of their mechanical and electrical rooms is critical to the design and it is 11 years later. I think they are trying to argue that they could do it for that dollar amount so it is just an arbitrary number, in a sense, on behalf of the BIA. I will pick up the pace here. And I am not negotiating for them but I think their other argument is, if in fact you do not think they can do it for that amount of money, they will use other funds. You know, they will do something to access the rest of the funds but then one of the arguments from the BIA is, ``well, you cannot use federal government money to maintain those last 5,000 square feet.'' It is a 50,000-square-foot building so it is only 10 percent. This is not like they have doubled the size or anything else. And more than anything else, they want to get a decision because now they are stuck. They should be going into the design phase. They should be starting working on this, and they feel like, A, they cannot even get an answer, and B, I think they want the chance to argue their point a little bit, and more than anything else, I want to see them be able to go forward with the construction, given all the backlog we have. At least there is a school that should be constructed, and let us get it constructed. So who does make construction decisions, and why has it been so hard for them to get an answer or even my office to help out getting an answer? Mr. Washburn. I am going to ask Director Roessel to handle your question because he is in the weeds on these kinds of questions. Keep in mind that he has 1,700-plus school buildings and 183 different campuses that he is in charge of as well. The quick answer is, we plan for construction, and we had plans, and if we want to change plans, there is a lengthy process to change those plans. Want to move quickly too. It is hard to change the plans when that ball has started to roll. But I am going to ask Director Roessel to address your question in more specificity. Mr. Roessel. Thank you for the question. The BIE has the responsibility of approving educational space, and then the Division of Facility Management and Construction approves, the mechanical space: how much for HVAC systems and things like that. Actually, the total amount that is above the square footage in the plans is 9,206 square feet. It is not 5,000. Five thousand is just going to educational programs that you talked about, expanding the gyms, the jobs for Maine program and things like that. Our office has approved 52 percent of that 5,000 space. So we have actually not said no to it but we have been trying to go back and forth. We have space guidelines, and the purpose of those guidelines is that one point BIE and BIA were accused of building buildings too large for our Indian school student counts, that there were vacant classrooms and things like that. So these guidelines are to help us say, here is the standard, for this many students. So that is in place and what we are going by. It is not an arbitrary number that we have. These are space guidelines that actually are aligned with the standards out there. We looked at different states that have guidelines and said okay, that state is kind of like our schools and we pick and choose from those states to create these guidelines. Based on that, we now have these guidelines to ensure we do not build schools too big. The space that we approve following space guidelines is what we can fund for operations and maintenance. Otherwise we would just build these really big schools that people want but there is no justification. Nonetheless, we have agreed to over 52 percent of their request. I think right now that a letter has been drafted and we have worked with the school and the tribe. We met with the tribe. The tribal president came and met with my staff a couple weeks ago. We talked about this. I actually was on the trip with the Secretary so---- Ms. Pingree. Oh, thank you. Mr. Roessel. I was not able to be there but the staff was there. We are in the process now of notifying the school with our determination. The plan at this point is to allow the school, if they wanted to have something larger, they can do it through value engineering or they can do it through an alternate. So if they wanted to have a separate building or separate classroom that is above and beyond the determination, then they can do that and they can build it on top of what is allocated. The plans that we have were built and created based on the square foot amount generated by the space guidelines. Anything above that has to be negotiated. My responsibility is just for the educational space. The mechanical space is about 4,000 square feet, and that is something that the Division of Facilities Management and Construction would take care of. So we have now come to that final decision. The school should be notified, we are hoping, in the next few days in terms of that decision being made and they can begin the design process after that. Ms. Pingree. So thank you, and I am sure they will be very happy to receive the letter and have a more concrete answer, and just to clarify, like I said, I am not negotiating. I do not know everything about the plan so I do not want to get into too much detail here, but did you say that they could do something in addition to that and it would not cause you to turn down their entire plan, if they had some other source of funding for a slightly larger space or there is some other add- on they want to the building as long as it is not trying to come out of the same money? Mr. Roessel. If they are able to, for example, through their negotiations with their contractors get a really good price and build the extra space, they are allowed to do that. But this 9,200 square feet actually comes out to about $2.6 million above and beyond what was allocated and funded. Ms. Pingree. Got it, but whatever the thinking was that said they would not be allowed to do it because the maintenance costs in the future would be a problem, that is not accurate? Mr. Roessel. That is a decision that they would have to make and figure out how they would handle the operation and the maintenance but it would not say--we would not say you cannot do anything. Ms. Pingree. You would not shut down the whole building process. Okay. Well, that is plenty of time. Thank you very much. I appreciate that. Mr. Calvert. It would be helpful, though, to iron out any differences before we appropriate construction dollars on these things. If we had known about this, we could have been willing to bump up the funding and resolve this, and if we do need to do this, we need to do this in fiscal year 2016. So we would like to be made aware-- Ms. Pingree. Thank you, Mr. Chairman. Mr. Calvert. Coming from that industry, I would say the two happiest words a contractor ever hears is ``change order.'' So get your plan set and then build to those plans. Do not modify or change in the middle of a construction job. Ms. McCollum. Mr. Chair, on this point, two things come to mind. You know, Ms. Pingree was pointing out that these plans were from 10 years ago. The principal was telling us that they really thought the count for the children was wrong; that she knew she was going to have more kids coming through that door. The other thing is, if we are looking at 10-year-old plans, there have been a lot of changes in cutting-edge technology, such as with HVAC systems. So as you are going through developing your new plans my happy assumption is, you are taking as much of that as you can into account. Am I correct? Mr. Calvert. Mr. Simpson, you had a question? ROAD MAINTENANCE Mr. Simpson. Yeah, I have a real quick question. When we were out in the Hopi-Navajo country, we went out to one of the schools that is going to be replaced. We rode on a bus out to it. Mr. Calvert. I have liver damage. Mr. Simpson. Now, the interesting thing about that is Ms. McCollum and I are sitting on the bus driving for 20 minutes out there. We got 500 steps on our Fitbit just sitting on the bus---- Ms. McCollum. One way. Mr. Simpson. Yeah, one way, which tells you how bad the road was. Tell me about your roads program. And I hear this also from the Cheyenne River Sioux and other tribes. In fact, I hear it from just about every tribe that I meet with, they are concerned about how we fund roads on the reservations. Mr. Washburn. Thank you, Chairman. We have been accused of putting you on a bus that has square wheels. We have been accused of putting you on a box that had no shocks. And that is one of our serious problems and it is a problem all over Indian Country, especially on large, rural reservations, and frankly, Mr. Black and I have gotten an earful about the formula for funding roads, and that is a formula developed in Congress, not by us, and so we know those are serious concerns. Since Director Black is an engineer, I think I will ask him to answer this question. But let me just say, we have $26.7 million in our proposed budget for road maintenance. There is a whole other bill that affects this area. I think it is called the Grow AMERICA bill, the reauthorization to MAP-21 is an area where there is significant money for roads and so we do not want to take all of it on ourselves because there are other committees and other agencies with important responsibilities, and we do spend some of that money that comes from that bill but we need to be taking an all-government approach to this as well. Mr. Black. Mr. Black. May I just add a couple things to that? We currently, based on 2014 estimates, have about a $280 million backlog in our road maintenance, about 250,000 miles of roads in Indian country. About 75 percent of our overall inventory is BIA, tribal and county roads, and about 45 percent of those are bus routes, and about 45 percent of those are dirt and gravel roads with the majority of them being bus routes. So it is a problem that we recognize, and under the previous highway reauthorizations there was some language put in there that does allow a tribe to use up to 25 percent of their highway construction dollars toward road maintenance, but as you know, we are robbing Peter to pay Paul because we have some extensive road construction needs out there as well. So road repair is something that is high on our radar as far as something that we need to address. It has been an ongoing problem for multiple years. I used to be a regional road engineer so I have dealt with this for 15, 20 years. We have to work closely with the tribes. The authorization of the highway bill is important because while our road maintenance comes out of our Department of Interior funding, the highway bill funds our road construction programs. Mr. Simpson. Does the formula need to be reformed? Is there an issue with the formula? Mr. Washburn. Well---- Mr. Simpson. Depending on who you talk to? Mr. Washburn. There is no perfect formula out there. That is right. Mr. Calvert. Mr. Joyce, do you have any questions before I excuse this panel? Mr. Joyce. Yes. Thank you, Mr. Chairman. I would like to address one question to Director Roessel. SAFETY AND SECURITY AT BIE SCHOOLS The Department of the Interior has recently conducted an inspection of the Moencopi Day School, located on the Hopi Reservation adjacent to Tuba City, Arizona, to determine the quality of safety measures in place at BIE-funded schools to prevent violence against students and staff from internal and external threats. The OIG found Moencopi Day School's safety measures to be inadequate. Specifically, the school did not have a comprehensive emergency plan. In addition, training in violence prevention and emergency preparedness was found to be inadequate. Of the 18 safety measures OIG checked for, Moencopi Day School did not have 12 in place. The OIG issued reports in 2008 and 2010 on this same topic and concluded that schools were not prepared to prevent violence and ensure the safety of students and staff. Moencopi Day School was not among the schools previously visited. This is a serious issue. Can you point to specific provisions within the FY 2016 budget that will help schools such as Moencopi Day School improve its safety measures and its violence prevention and emergency preparedness training? Mr. Roessel. Thank you for that question. Mr. Joyce. I am not trying to put you on the spot, sir. I come here after serving 25 years as a prosecutor, and unfortunately, this is the three-year anniversary of a school shooting in which three kids were killed and many more kids wounded, so it is something near and dear to me. I am not making light of this or trying to put you on the spot. I just want to make sure our kids are safe. Mr. Roessel. No, I understand. It is something that we take very seriously in the operation of our schools and also in the areas where we operate these schools. They are in very remote locations. They are in areas like Moencopi. They are in areas like Flander, all across this country. Specifically, what do we have in the budget? I think I would take a different approach. I think it is a collective approach that we are looking at. We need to try to improve the overall accountability of the BIE, and by doing that, it is not focusing just on safety but it is focused on accountability in its totality. Over the past few years, we have had a drop in employees within our system. We need to turn that around and get people working in these different areas that have the responsibility of overseeing safety measures happening in schools. I know when I was a superintendent of schools, we used to have the education line officer who was in charge and would come out and ensure that we had our continuity of operations plan, and that we had our fire drills and all of those things. Because there are not the same number of employees there anymore, planning has lapsed, so we are trying to get back to that, ensuring the accountability. The other thing, too, is defining roles and responsibilities. One of the problems that we have out in Indian Country is that we have everyone doing a lot of different jobs. Defining those roles and responsibilities as part of this blueprint for reform is actually going to help in the areas of safety as well as in the areas of finance, curriculum, and instruction. We are really trying to redefine what those roles and responsibilities are, clarify those roles and responsibilities and then hold people accountable. So a specific point in the budget, I cannot do that, but in its totality, we can do that, and that is what the blueprint for reform is: trying to maintain and create greater accountability measures throughout the entire system. Mr. Joyce. And you have adequate funding to do that? Well, there is never enough. In your funding process, you are looking forward to doing that? Mr. Roessel. We are prioritizing, and the implementation plan will help us do this in phases, and we are positive we will get it done. Mr. Joyce. Great. Thank you. I have no further questions. EMPLOYEE HOUSING Mr. Calvert. Thank you. And one last comment. When we were at Moencopi School, we noticed that there were three empty houses. You were there, I think, Kevin, and there was this dispute between the security people and the teachers and so the end result is, the houses are sitting empty for 2 or 3 years. It drove us all crazy thinking wow, what a waste, and hopefully you fixed it since we left and that it is all resolved. Mr. Washburn. Good. Can we leave it there, leave it with your optimistic statement? We actually have been working on this, and there were two houses. We have tried to arm-wrestle with our law enforcement folks to get those houses and perhaps make them available to teachers. They have said no, we want to keep them and we will fill them. You may recall there was an issue about the cost of those homes. We are trying to do some creative work to figure out how to get the costs down so that law enforcement officers can use those homes. We have one rented, and we are working on a solution for the other one. You know, the local community had a lot to say about that. They wanted police officers in those homes and so-- Mr. Calvert. All right. Well, I just hate to see them empty. Mr. Washburn. You and us too. Ms. McCollum. Mr. Chair, you mentioned whether the police officers could afford to live in them. The government and county offices determine what the rents are going to be, right? Did they actually look at the salaries of the federal employees who have to rent them? Mr. Washburn. Well, that is a question, and I think it is the GSA that is involved. Ms. McCollum. Excuse me. Mr. Washburn. And honestly, everybody has got some responsibility. There are some Congressional formulas that we have to follow too--but that is a good question, and we are trying to figure out a way to make those spaces more affordable for those folks, and we are making some progress. Mr. Calvert. Thank you for being here today. Your continued efforts to lead in the face of tremendous adversity, the traditionally high turnover rate in all three of your positions is a testament to the challenges you face. We want to see you succeed, and we hope we can continue to be helpful partners so that you will stick around for a while and see through many of the improvements you are trying to make. At this time we will excuse you from the table and invite you to take a seat in the front row while I ask the second panel to come up. We will have a brief pause and change signs here. Now we will shift gears and focus in more detail on the oversight of BIE facilities condition and management. I would like to welcome our witness from the Government Accountability Office, Melissa Emrey-Arras, Director of Education in GAO's Education, Workforce, and Security team. Thank you for being here today, and agreeing to testify prior to finalizing your study so that we can have an opportunity to make any necessary course corrections in the fiscal year 2016 bill. Exactly 2 years ago to the day, in this room, Chairman Simpson convened a similar BIE oversight hearing in which GAO testified prior to finalizing a study we had asked them to do regarding per-pupil spending. GAO's testimony at that time helped this subcommittee to push this Administration to make Indian education a much higher priority than before. To its credit, clearly, the Administration is stepping up. But I think as we will see today, clearly, we still have a long way to go. I recognize that we can help close part of that distance with more funding, but not all of it. There are some management and accountability issues and perhaps even some legislative issues that must be addressed before significant funding can follow. So Ms. Emrey-Arras, welcome and thank you again for being here today. You are recognized for your testimony. Opening Remarks of Ms. Emrey-Arras Ms. Emrey-Arras. Thank you, Chairman. I want to thank all those here: Chairman Calvert, Ranking Member McCollum and members of the subcommittee. As you know, GAO has conducted a body of recent work on BIE schools. In prior work, we found that Indian Affairs has been hampered by key management challenges, including a lack of needed expertise, insufficient oversight of school spending, and poor communication with schools. Today, I will discuss the physical condition of BIE school facilities. The Bureau of Indian Education oversees 185 schools that serve approximately 41,000 students on or near Indian reservations in 23 states. In 2014, Interior's Office of Indian Affairs funded the operations, maintenance, construction and repair of close to 1,800 school buildings worth an estimated $4.2 billion. My remarks will cover preliminary findings from our ongoing study of these schools for your subcommittee. Specifically, I will focus on two areas: (1), what is known about the condition of these schools, and (2), the extent to which Indian Affairs effectively oversees and supports these school facilities. Unfortunately, Indian Affairs does not effectively track the conditions of these schools, which makes it difficult to accurately determine the number of schools in poor condition. Back in 2003, we reported on inaccurate and incomplete data entry by school officials and limited training regarding how to use the facilities' database. Our ongoing work suggests that the data are still problematic. For example, officials at one school told us that they did not routinely enter information into the facility's database because their staff lacked expertise and Indian Affairs had not provided them adequate training. As a result, they said that the existing information in the facility's database significantly underestimates their repair needs. We believe that inaccurate and incomplete data will continue to hinder Indian Affairs's ability to prioritize school repairs and target funding. During our ongoing work, we visited schools in three states that reported facing a variety of facility challenges. For example, at one school, the old boilers have been deemed a major health and safety concern by the BIE school safety specialist. You may have seen some of the pictures of the boilers in the testimony. In addition, the school often needs to close down when they fail to provide enough heat. The staff at the same school also showed us exterior doors that did not lock properly and had to be chained during school lockdowns. Many of the entrances also lacked exterior security cameras, which relates to some of the safety concerns we discussed. These challenges were actually highlighted during our visit to the school when they had to perform a lockdown during our visit when a student made a Columbine-type threat. At another school, we also observed a dormitory for elementary school students with inadequate clearance between the top bunk beds and sprinkler pipes on the ceiling. You may see a photograph of this in my statement. School officials told us that the students had received head injuries from bumping their heads on the pipes, and some students had actually attempted suicide by hanging from them. Preliminary results from our work indicate that Indian Affairs has key, longstanding management challenges that are impeding its oversight and support for these school facilities. These challenges include limited staff and expertise to address school facility needs. For example, our preliminary analysis shows that about 40 percent of regional facility positions are currently vacant. We also found inconsistent oversight of school construction projects. For example, at one BIE-operated school we visited, Indian Affairs managed a $3.5 million project to replace school roofs. Yet the replacement roofs have leaked since they were installed in 2010, causing mold and ceiling damage in the classrooms. BIA officials told us late in 2014 that they were not sure what steps, if any, Indian Affairs would take to resolve the leaks or hold the contractors or suppliers accountable. Mr. Calvert. Excuse me. On that question, how big a roofing job are we talking about? Ms. Emrey-Arras. It is very large. It covers multiple parts of the school, including the gymnasium and many classrooms. Mr. Calvert. But this is one school? Ms. Emrey-Arras. Yes. Mr. Calvert. How many square feet in the school approximately? Do you know? Ms. Emrey-Arras. We can get back to you with that answer. Mr. Calvert. And was there any warranty within that contract? Ms. Emrey-Arras. They are under warranty, and they have been asking the manufacturer to come and fix it. It is a patch job here and a patch job there, and 6 to 8 weeks later there is another leak. They think it has to do with the way that the seams were constructed so that it is not a permanent fix, so they keep bringing the manufacturer back but nothing happens. So there are real defects in how it was installed. Mr. Calvert. Excuse me for interrupting. Ms. Emrey-Arras. Oh, if there are any other questions, please ask. This is all very troubling. Mr. Joyce. I have a question. Who represents you? Ms. Emrey-Arras. I am sorry? Mr. Joyce. Who represents you? Do you have a legal office or Department of Justice or somebody that represents you to take action on that? Ms. Emrey-Arras. Oh, in terms of what the legal options are---- Mr. Joyce. Yes. Ms. Emrey-Arras [continuing]. For the Department of Interior? That we would leave to the Interior Department to respond to, but there are potential legal claims that could be made against the supplier or the manufacturer. Mr. Joyce. They should. Thank you. Ms. Emrey-Arras. Sure. In addition, we found poor communication with schools. For example, at another school we visited, officials told us that they had submitted a request for a new hot water heater because their elementary school lacked hot water. Yet Indian Affairs officials were unaware of the situation until we brought it to their attention. As a result, students and staff at the school went without hot water for about a year, and it was not fixed until a month after we spoke with Interior officials. Mr. Calvert. Excuse me. Ms. Emrey-Arras. Please. Mr. Calvert. Is that not illegal? Ms. Emrey-Arras. It is a serious--we find it troubling. Mr. Calvert. Okay. Ms. Emrey-Arras. There are concerns about student health without the hot water. In conclusion, our preliminary findings show that Indian Affairs continues to face challenges overseeing and supporting school facilities. Unless this is addressed, some students will continue to be educated in poor facilities. We will continue to monitor these issues as we complete our work and consider any recommendations that may be needed. Thank you. This concludes my statement. [The statement of Melissa Emrey-Arras follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Calvert. Thank you. Your written testimony states that you visited 12 BIE schools. Would you please elaborate on the conditions you observed at the schools including any health and safety hazards? HEALTH AND SAFETY HAZARDS Ms. Emrey-Arras. Sure. We visited 12 schools in three states, and we chose them so that they would represent a range of conditions. However, some of those that were listed in better shape in the database ended up not being so when we actually went to see them. We found many things that concerned us. For example, we found a high-voltage electrical panel that was installed next to a dishwasher at a school cafeteria. This is a situation where you have a lot of water in the area, which creates potential electrocution hazards. That, I believe, was in October. The safety inspector noted it was a hazard. Since our visit, it has been fixed but we found it troubling that it was there to begin with, and this was new construction. We also observed a school that had an antiquated phone system that did not allow phone calls between dormitory floors and other buildings, making it difficult in case of an emergency. So again, here is the safety issue. If there is a fire or a security concern, they would not be able to call from one floor to the next. So those were some of the things that we observed. Mr. Calvert. Your statement discusses problems with recent construction of BIE facilities. What were some of the other specific problems you observed? Ms. Emrey-Arras. Unfortunately, there are more examples. We went to a school that later sent us information regarding a large concrete fragment that fell from the wall of a kindergarten classroom. Luckily, the classroom was empty at the time, but it is a concern if you have a new building where things are falling from the walls. We have also heard from multiple schools about reported leaks, again with new roofs that were installed in recent years. There was also an incident with a bus barn. You may have seen pictures of that in my statement where the barn was used--or built--so that they could store and repair school buses. Yet it was constructed in such a way that it could not fit all the buses when they were on the lift. As a result, they need to leave the outside door open if they want to repair a large bus, which is very difficult during the winter and not very practical. So there were quite a few issues that we encountered during our visits. FACILITY CONDITION DATA Mr. Calvert. Obviously, this is a question. Why does Indian Affairs have such poor quality data on the condition of their schools? Ms. Emrey-Arras. This is a good question, and this is something that has been going on for quite some time. We have reported on this in the past, and it continues to be a problem to this day. Our understanding is that Indian Affairs does not routinely monitor whether schools are entering complete data on their facilities. At that first step of schools getting the information in, it is unclear if it is always correct or complete. I think part of it is that we have been told that staff have not received training on how to do this, and that the last centralized training on the database was offered in 2012. Mr. Calvert. Ms. McCollum. QUALITY OF CONSTRUCTION Ms. McCollum. I have been to the Bug School, so I thought have seen it all, until I saw the high-voltage next to a dishwasher. So wonders never cease. One of the things that I have noticed in some of the schools that I visited alone and when I have been with my colleagues is the amount of poor construction. I am not a construction person but I look at these buildings, and I would not have allowed this to happen if I was building my home doing things with a contractor. So are we allowing principals and some tribal leaders out there to negotiate what is good construction and not good construction? I know these are isolated areas. We build rural schools all over Minnesota. But our rural schools are not falling down like this. So what happens with the inspection? In your report, you note that we do not even return back 10 percent of the payments until it passes inspection. But, quite frankly, I do not understand how some of these schools are passing inspection to begin with in the first place. Now, maybe it is because I come from a union state, I do not know. I know that this would not happen because we use skilled labor. Is it lack of skilled labor? Is it lack of inspections? What is going on? Ms. Emrey-Arras. That is an excellent question. We do know that there is a skills gap in terms of the agency not having enough folks with the right skills to assist with this issue. We will be looking at this more in depth as we go forward with our study to figure out exactly where those additional gaps are. I think it all comes down to accountability though. These are federal funds, and they are not being used in a way that is benefiting children. Ms. McCollum. Well, Mr. Chair, I have got an idea. Let us take some tribal college resources and funds and let's train up Indian Country to be able to go out not only do their own construction but be able to do their own inspections. I think that this needs to be part of our discussion. Thank you, Mr. Chair. Mr. Calvert. Ms. Emrey-Arras. Mr. Simpson. Mr. Simpson. This is actually kind of stunning. I was just telling Congressman Cole that I will guarantee you if it was a building built or a school built or re-roofed anywhere in Idaho, in any community in Idaho, if it started to leak, contractor's rear end is in trouble and a prosecutor would be after them in a heartbeat as well as the school and attorneys. I do not understand why that has not happened here, and it reminded me as you were talking about this, the stories in the old days about the reservations and we were going to provide beef and so people took advantage of it and put spoiled beef on the reservations and somebody is taking advantage here. Whether it is the contractors or the designers of the roof or whatever it is, somehow they have got to be held accountable. Having listened to Mr. Washburn and the other witnesses today, these are good people, and they are trying to do a good job. They are not just putting a blind eye to all these issues. They want the best for the tribes and the kids in these schools also. Is there something in the organizational structure that you have looked at that that could bring more accountability into the process? And what was the BIA's response to your report here? Did they respond? I plan to review it this weekend. DOI RESPONSE TO GAO REPORT Ms. Emrey-Arras. We provided a statement of facts to the Department of Interior and received comments on those facts, and we incorporated any changes in response. I think there is general confusion among schools as to who to contact about facilities' problems. This is the issue that surfaced in the earlier panel about roles and responsibilities needing to be clarified, and I think that makes it all the more difficult for schools to know who to talk to when there is a problem. So I think that is an issue. We have previously recommended that Indian Affairs develop a communications strategy so that they can avoid some of those communication pitfalls. However, that recommendation has yet to be implemented by the Department so that is one thing that could be done. Similarly, we have made a recommendation that the Department develop a workforce plan to make sure it has the right number of people with the right skills to do the work. That recommendation is still outstanding as well and has not been implemented. So those are some immediate steps that could be done to help improve the situation, and we will continue to look at these issues as we move forward. Mr. Simpson. I will tell you, it gives me pause to have confidence in the list that they are going to put together prioritizing needs if we do not have the ability to determine what the need is. I will tell you that as we have traveled on some of these trips, we have gone to some schools that need some improvements, they need some repairs, and you talk to the local people and they are saying this needs to be torn down and replaced. I look at them and say, I understand why you say that, but I have been in some schools that I would not walk in, that I do not feel safe walking in, and this is a dream compared to them. I am not saying this is good. Ms. Emrey-Arras. Right. It is all relative. Mr. Simpson. And so it gives me pause as to whether I am going to have confidence in the prioritized list that they come out with. Ms. Emrey-Arras. We also have questions to the extent that they use data from the facilities database to create that list because our understanding is that there are significant issues with that data. Mr. Calvert. Ms. Pingree. Ms. Pingree. Thank you, Mr. Chair. Well, thank you very much for your report, and I am a relatively new member on the Committee so I think everyone here has much more experience in looking at schools and seeing some of these challenges. But you heard earlier I am from a state that is about to build a new school, and as you kind of mentioned, there are already so many questions about who to contact, who makes the decision, how does that get done. I can understand that there is a lot of general confusion, and I suppose it is not surprising that happens again when it comes to oversight. So I think the more recommendations that are out there about how to streamline the process, how to make it seem more like what happens in other school systems when there is oversight and inspection, and if a school, does not have sufficient expertise in how to make sure they are treated fairly, and if there are situations that schools are not being treated fairly or they are rural or remote, it seems like it is a perfect storm in a way for all kinds of bad conditions. But certainly it seems like there is universal agreement on the Committee, you know, across the board and across the country that there should be more investment in school construction and there should be more creative ways to do it, and it just seems like it would be logical to build into that, this kind of data collection oversight. It is going to make the money be more effectively spent and certainly it has got to be disappointing for a community that finally gets a school and then the roof leaks or is it unsafe or anything else happens. So it seems like this is good timing in that way to dig in and make sure these things are looked at. I am hoping that you will have a lot of recommendations about how the Department restructures or conducts it. Certainly, it seems logical that there should be more training on how people use the database and they should have more of a vested interest I guess in making sure that data is properly collected. Ms. Emrey-Arras. Right. Ms. Pingree. But I do not know--I mean, feel free to elaborate on that. I do not have a specific question. Ms. Emrey-Arras. Sure. I would say that clarifying offices' roles and responsibilities is important in addition to implementing our prior recommendation on developing a communications strategy. They may also want to turn their attention to their directory, which has not been updated in several years. I think if people have the right contact information for folks, that can help with the communication process as well. So I think there are some small steps that can make a big difference. Ms. Pingree. Thank you. Mr. Calvert. Before I go to Mr. Cole, if you can get back to me on that roofing job, it is driving me crazy. Ms. Emrey-Arras. It is not just you. Mr. Calvert. I re-roofed a lot of buildings in my lifetime and restaurants and industrial buildings and the rest, and so I have a pretty good idea of what roofs cost, so there is regional differences, and depending on where you put the roof, but if you can get the square footage, how big the building is. The largest roofing contractor in the State of California is one of my best friends. I am going to have him look through and see--the bid because he can tell me how bad this probably is. Mr. Cole. Mr. Cole. Will you share that information with the committee? I am sure you will. I am sorry, first of all, I missed most of your testimony. I apologize. And like Mr. Simpson, I am going to read it, but it is pretty easy to catch the flavor of your testimony, both your conclusion and in the questions that have been asked. A couple of questions. When you look at these schools, and obviously you are doing, I suppose, a sort of fiscal--or physical and fiscal look, but are there any governance systems for these schools? I mean, we normally would think of a school board and superintendents and school boards. Tell me how they are governed. Do you see any difference(s) when they are? I know, for instance, our friends, the Choctaws, run their own Jones Academy School. It is an unbelievable school, physically first rate. It is wonderful education and they educate Native American kids from all over, not just Choctaws. And so my experience has been, I have seen this in healthcare systems, the more the tribe is actually the manager of it--we still have resource questions and taxation questions and all that, but if parents can get their hands around the neck of somebody that is responsible, or their tribal legislators have the authority, responsibility, and know they will be held accountable, that tends to make a real difference in how any institution I see is managed. Self-governance actually is usually very, very good. Ms. Emrey-Arras. Well, we can definitely look into that more as we continue on. This is really the midway point for us, and we have more site visits to do as we go forward. I would say that obviously there are differences in terms of how the schools are run, whether they are tribally operated or BIE operated. That said, in terms of facilities management, Indian Affairs does play a significant role in terms of funding the schools, regardless of how they are operated, whether they are BIE operated or tribally run. Indian Affairs also owns the majority of all school facilities, about two-thirds. The tribes own about a third. So those are some of the things that we have learned so far. We are going to continue our exploration. Mr. Cole. We really should look at this, particularly in healthcare areas. It just--and I do not say this to knock anybody here and certainly not Indian Health, but where I have seen tribes actively managing--number one, if they have any revenue, they usually shift some of their own revenue into this because it is for their own people, but even beyond that, it just seems to work better, and I would assume the same thing here, so I think this is a governance issue as well. QUALITY OF CONTRACTORS AND CONTRACTED WORK And I do want to pick up on something that Mr. Simpson suggested and ask you to also look. There is culture in contracting too, and the history of private contractors working for the federal government in Indian Country, throughout the entire history of this country, has been bad. This is not a new problem. This is not something that is this Administration's fault. Frankly, I want to commend them for trying to get their hands on this and put resources in there and do some innovative things, and this committee very much on a bipartisan basis wants to do that too. But suggestions you could make about, you know, not only this or that--what are the contractor problems? What are the availability of contractors? Many of these places are going to be built in very remote locations. We saw a detention facility that had been badly sided where literally half the building was breaking off. It was an old facility when we were in Hopi country, and this happens time and time again. So what are the best practices contracting-wise that we can put in, and are you looking at that as opposed to just it is bad here or that but how do we actually go about this? How do we choose contractors? Who is responsible? Ms. Emrey-Arras. I think we will be looking into that, especially given the concerns that we found with some of the contractors that have put in those new roofs. It definitely raises the issue of accountability, on the contractor side or the supplier side. In terms of promising practices, I want to let you know that as we go forward, we are also going to be looking at some additional models that are being used to come up with other ways of managing facilities. For example, in Oklahoma, I know four schools came together to jointly hire two architects and a technician to help with their schools. So by having the tribes come together, they were able to jointly fund these positions so they were able to cover more schools. And so we will be looking at that as an alternative model and others that schools may be proposing to see if they also offer possibilities for the Department to encourage others to adopt as well. POSSIBLE LEGAL ACTIONS Mr. Cole. The last thing I would ask you to look at, or maybe you are looking at it, again, this goes back to a point Mr. Simpson made, you know, there has to be a means, a punitive means, whether it is civil fines or criminal activity, where when you have got somebody, somebody really has the authority or responsibility to go after them, and I think sometimes, you know, people with the best intentions may be in Washington, D.C., and not see it. Somebody in local ground may see it and not have the ability to do it. How do you develop that so that they know when they are dealing with, you know, an Indian school in any state. It is like dealing with one of Mr. Simpson's constituent schools that hey, you come in here and mess with our kids, you are going to court, we are going to hold you accountable. If we bankrupt your company, that is what we are going to do. We expect, you know, value for the dollar and we expect these are, you know, kids going here that they are going to--somebody is going to look after them. Ms. Emrey-Arras. Well, we are definitely talking to our lawyers, who are very familiar with options available, and we will be involving them in our review as we go forward to talk about potential remedies. Mr. Cole. Thank you, and thank you for doing this. Yield back, Mr. Chairman. Mr. Calvert. Thank you. One point that both Mr. Cole and Mr. Simpson, noticed when we were out there looking at these various properties, that seemed to be a consistent problem was site preparation, not just on the schools and the detention facilities but on the housing. Apparently nobody ever heard of civil engineering before or soil testing and that type of thing, because if you build on a bad site, that could cause a lot of these problems you are talking about. If you have a shifting foundation, that can cause leaks and the rest. But that is why we need to get to the bottom of this. Ms. Emrey-Arras. And one of those schools, if I may say so, was built on a swamp. Mr. Calvert. That is great. That is great. Yeah, we noticed that one of the schools was built next to a flood control channel. It just does not seem like good site planning. Mr. Kilmer. HUMAN CAPITAL AND WORKFORCE PLANNING Mr. Kilmer. Thanks, Mr. Chairman. Thanks for your testimony, as troubling as it is. One of the things that popped out to me in your testimony was the notion that 40 percent of BIA regional facility positions are currently vacant including engineers and architects and facilities managers. I get the financial challenges, but, you know, I guess I echo Ms. McCollum's comment. It seems like there would be some benefit in exploring ways to connect the Bureau's need with postsecondary institutions that are trying to train tribal members or, you know, work study programs, and I would certainly invite you to comment on that. Moreover, you had recommended that BIA revise its strategic workforce plan to ensure BIA is getting the administrative support that they need to be successful, and unfortunately, that plan has not been revised. To what extent has GAO explored BIA's talent management practices, everything from recruitment to retention to training to see what--to see that what they have got actually meets needs? Ms. Emrey-Arras. Those are really helpful points. To go to your earlier point, we will definitely explore the issue in terms of the links with higher-education institutions to see if there are opportunities there. In terms of the larger talent management or human capital examination, to my knowledge, we have not done that in recent years. We have touched on it in some of our prior work on management challenges, but we have not done an overall human capital evaluation. If that is something that the subcommittee would be interested in, we would be happy to do additional work. Mr. Kilmer. Thanks. Your report also highlights what seems to be positive developments resulting from a collaborative effort among tribes in Oklahoma to manage their facilities. I know GAO intends to continue reviewing that approach to see what lessons can be learned from it, but do you have a sense of how to compare the funding that BIA provides for those sorts of efforts through fee reimbursements as compared with the funding it makes available for regional offices to hire and to retain quality staff? Ms. Emrey-Arras. Not at this time. It is something we can certainly look into. Mr. Kilmer. Okay. Thank you. Thanks, Mr. Chairman. Mr. Calvert. Thank you. Mr. Simpson. Could I ask one quick question? Mr. Calvert. Ms. McCollum. Ms. McCollum. Thank you, gentlemen. Mr. Calvert. Sure. Ms. McCollum. One of the other things, because we talked about many BIE schools being remote and problems getting bids. So I have two questions. One, is it possible to work with the Bureau to come up with a list and see if there is a pattern of really egregious contractors, and then not allow these people to bid on things anymore? And then my second question is about another obstacle that you point out in your report on page 10. Sometimes it is infrastructure that the school needs, water pressure, water pipes, electricity that is reliable. And I appreciate what Mr. Cole said. We are not here to shoot any of the messengers today because quite frankly, people are trying to fix this problem. So we appreciate this, and this is all in the spirit of us doing our part to help. But we need to know who is responsible? Is that a problem? Are you going to thread that together with electric and water and sewer that come into the school? Ms. Emrey-Arras. We have noted, as you point out, that these schools do face additional costs that a lot of public schools do not face. They have to often have their own water and sewer systems. They may need their own fire protection systems given their remote locations. That is something that we have observed and is something that is relatively outside of their control. So I think we will be looking to see how that factors into our findings as we go forward. We will think about how our recommendations would affect that issue as well. Mr. Simpson. I have just one quick question, if I could, Mr. Chairman. You may want to take a pass on this if you do not want to respond. It is a general question, not just about this, but the GAO. We ask you to do studies and to report on things and investigate things, my idea of how it works is that we ask you to go look at school construction and BIA or any other subject out there in government, and you make recommendations on certain things, from your findings. There may be a reason that an agency does something that you are unaware of that is perfectly legitimate. What is the reception that you get generally from the agencies that GAO reports on? I look at it as someone to help you, a fresh set of outside eyes to look at something. Or are you seen as they are here to bust our rear end? It makes a difference in how it works out. Ms. Emrey-Arras. Right. I do not know if I can speak globally for everyone in terms of what it feels like when they hear that GAO is coming to visit. I would say that some school officials, at least on this study, have been very receptive to our efforts and are very interested in us coming to see their facilities to talk about the concerns they have because they are very concerned about the environments that their students are experiencing, and they want people to know what is going on. Mr. Simpson. What about within the Department? Ms. Emrey-Arras. We have also had a lot of cooperation from the Department, and I would say the majority of our recommendations on this issue have been agreed to by the Department. Mr. Simpson. That is good to hear. Thank you. Mr. Calvert. Thank you. Ms. Emery-Arras, thank you for your testimony today, especially for GAO's ongoing work in this area. We will be happy to invite you back once the study is complete. It will be interesting reading. Ms. Emrey-Arras. I am happy to come back. Mr. Calvert. And we certainly want to thank our first panel, Mr. Washburn, Mr. Black and Mr. Roessel. As I said before, we all want to help you succeed. Our partnership overtures may cause considerable grief but we are sincere. We all have the same goal, and that is to help the children. So we thank you for your good work, and we are adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]