ENVIRONMENTAL  205593002
    PROTECTION
      AGENCY
FY 1994 President's Budget
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Several Over-Arching Principles Guided
          Our 1994 Decisions
  Innovation and Change

  Environment in Mainstream of Domestic
  Policy

  Investments for the Future

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       The FY 1993 Jobs Package Accelerates
                FY 1994 Program
  Completes Capitalization of Wastewater SRF


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The President Proposes an Increase of $375 Million Over
                FY 1993 Appropriated Levels
Construction
  Grants

 Superfund/
  LUST

 Operating
 Programs
               FY1992
               Approp
                             (Dollars in Billions)
FY1993
Approp
                                            $7.3
                                        $0.9
 Jobs
Package
FY1994
Pres Bud
                                    Drinking
                                     Water
                                      SRF

                                    Clean Water
                                    Infrastructure

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     Budget Highlights
Administration's Environmental
Investments

Agency Initiatives

Deficit Reduction

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Administration's New Environmental Investments
                  Exceed $2 Billion
      y Water Infrastructure
            --Clean Water SRF
            --Drinking Water SRF

           V  Watershed Restoration

              V Green Programs

                ^Environmental Technology

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Resources to Enhance the Nationfs Water Infrastructure
                   Increase by $469 Million
Construction
  Grants
              $2,550
                        (Dollars in Millions)
                               $892
  Wastewater
    SRF
Non-Point Source
                       $3,019
                      j
                                               $2,127
               New Clean
               Water SRF


              New Drinking
               Water SRF

                 Other
         1993 Approp
Jobs Package
1994PresBud

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 A New $599 Million SRF Will Protect
    Our Nation's Drinking Water
Assist Municipalities in Meeting New Safe
Drinking Water Act Requirements

Low Interest Loans
Based on Successful SRF Approach to
Wastewater Treatment
$892
                           $2,550
                                           Drinking
                                           Water SRF
                         1993Approp
                                      1994PresBud

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EPA Will Invest $2.4 Billion to Improve
      Water Quality Infrastructure
      $2.4 Billion:
      • $1.2 Billion - Clean Water SRF
      • $892 Million - Jobs Package
      • $330 Million - Other Projects

      Eligibilities Beyond Current SRF

      Mexican Border Projects

      Non-Point Source
$2,550
      Special Eligibility
        $892
                    Drinking
                    Water SRF
                               1993 Approp
             1994PresBud

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EPA is Requesting Substantial Increase for Watershed
              Resource Restoration Grants

                       (Dollars in Millions)
 Existing
 1993
Resources
 Jobs     1994
Package   Request
                                  Creates new jobs

                                  Increases fisheries productivity

                                  Improves recreation

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                          Green Programs
                            (Dollars in Millions)
                                         Showcase for partnership with private
                                         sector
              $23
 Existing      Jobs
  1993      Package
Resources
 1994
Request
                                         Promotes energy efficiency

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                      Environmental Technology
               Total = $36 Million
Environmental
and Restoration
 Technologies

      $10.8
               International
              Environmental
               Technologies
                        $12.0
                           $12.0
                  Clean Technologies
                  for Small Business
       Setting
$1-2  Technological
       Priorities
• President's interagency program
• High priority environmental
  technology needs
• Harness Federal, university, and
  private creativity
                                                                                     19

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    We Have Streamlined our Superfund Program
                    (Dollars in Millions)
Enforcement
  Other
 Response
                 $1,585
                                    $1,496
             FY 1993
FY 1994

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Agency Initiatives Will Move EPA
       in a New Direction
    Pollution Prevention
    Ecosystem Protection
    Lead Abatement
    Improved Science
    Resource Management
                                        14

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                              Enforcement
                             (Dollars in Millions)
           Total Resources = $455 Million
             Water  $62
Superfund  $184
                                Hazardous Waste  $65
                                       Air $42
                                       Other  $48
                                Multi-Media  $54
                  FY 1994 Budget
                                                        $426.7
                                                                            +$28 Million
                                                                         $454.7
                                                      1993 Approp
                                                                      1994 Pies Bud

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              State Grant Resources Increase
               $78 Million (+14%) Over 1993
                         (Dollars in Millions)
   $547
FY 1993
               $625
                   +$78 (14%)
FY 1994
                                      (Total Resources = $625 Million)
                                             Air $173
                               Water $219
                                 Drinking Water $70
                                                             Pesticides $32
                                                         Hazardous Waste $102
                                                 Other $29
     1994 Distribution by Media

Includes $47 Million for Non-Point Source Grants
in the 1993 Jobs Package
                                                                         16

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The President Proposes an Increase of $375 Million Over
                 FY 1993 Appropriated Levels
Construction
   Grants

 Superfund/
   LUST

  Operating
  Programs
                 $6.7
                FY1992
                Approp
                              (Dollars in Billions)
FY1993
Approp
                                             $7.3
                                         $0.9
 Jobs
Package
                         $6.4
FY1994
Pres Bud
                                     Drinking
                                     Water
                                      SRF

                                     Clean Water
                                     Infrastructure
                                                                      t rr

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           STATEMENT OF CAROL M. BROWNER, ADMINISTRATOR


                 U.S. ENVIRONMENTAL PROTECTION AGENCY


                                      ON


                THE PRESIDENT'S BUDGET REQUEST FOR 1994


                                  APRIL 8,1993





INTRODUCTION


      Good afternoon.  I am pleased to present the President's proposed  FY 1994


budget for the U.S. Environmental Protection Agency.  As the  new Administrator  of


EPA, I look forward to the  excitement and challenge of shaping our Nation's


environmental policies for the next four years.


      Most important, I am looking forward to change. The American people  voted for


change last November, and we already have initiated substantial  changes at EPA.  This


Administration  is going to move the environment from the margins of national  policy to


center stage. The Cabinet  status bill and EPA's full participation on the new National


 Economic Council are just  two  indicators of the importance  of the environment to the


 Clinton Administration.


       The  President's proposed Economic Stimulus Package and this proposed EPA


 budget for FY 1994 are two additional indicators of the new prominence  of


 environmental  issues. At a time when the American  people are demanding better


 government, more results for their tax dollars, and a  smaller Federal budget deficit,


 President Clinton is proposing  to address these issues with a new environmental  agenda,
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 better  management of environmental programs, and  increased Federal investments  to



 protect  public health  and natural ecosystems.








 PROMOTING A NEW FJWIRONMF.NTAL AGENDA




        EPA's budget request for FY 1994 totals $6.4 billion.  When added to the




 President's proposed $916 million economic  stimulus  package, this request represents an




 increase of $375 million over FY 1993 appropriated  levels.  Viewed in the context of the




 Administration's overall FY 1994 budget - a budget notable for its honesty,  realism, and




 emphasis on deficit reduction - this FY 1994 budget  for EPA is an important measure  of




 the President's commitment  to the environment.  This budget and the Economic




 Stimulus Package will allow  us to begin making real changes and real progress in  1993,



 1994, and beyond.




       This proposed budget is only the first step  in an ongoing revaluation  of EPA's




priorities.  I recently initiated a comprehensive  review of aUEPA spending.   This review




will help us compare resource expenditures  with national environmental priorities, as a



basis for future budgeting  efforts.




        The proposed FY  1994 budget for EPA was shaped in large part  by four broad




goals: 1) increased  assistance to state and local  governments;  2) expansion of pollution




prevention  programs and  several other key initiatives;  3) emphasis  on ecosystem-wide




protection;  and 4) better management  of public resources in aU programs. EPA's




proposed investments in these areas  are a good indication  of how this Administration



intends  to implement an agenda of change at  EPA.

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ASSISTANCE TO STATE A"™ T^CAL GOVERNMENTS
      This Administration believes  very strongly that state and local governments are
the front line  of environmental protection.  As the former head of Florida's Department
of Environmental  Regulation, I understand  how state and local governments  touch
American lives. I also understand how  environmental  costs are stretching  state and local
budgets.  Consequently,  EPA's proposed FY 1994 budget, together  with the President's
Economic  Stimulus  Package, include several new initiatives, and  increased levels of
investment, that respond to  state and local needs.
       For example, to help protect the nation's drinking water, this budget proposes to
 invest $599 million  to establish a Drinking Water  State Revolving Fund. This fund
 would provide low-interest  loans for the repair and  improvement of existing drinking
 water systems.  Many such systems across the country cannot  afford the costs associated
 with upgrading needed  to meet national drinking  water standards.  The Administration
 will be submitting authorizing language for this new Drinking Water State Revolving
 Fund to  the  Congress in the near future.
        To address  wastewater needs, the President's Economic  Stimulus Package will
 provide  $845 million in grants to states to construct  or upgrade  wastewater treatment
 facilities. This new funding will complete Federal capitalization of wastewater treatment
 under the Clean Water Act.
        In addition, EPA's FY 1994 budget proposes a new approach  to meeting  the
  extensive water quality needs  still facing our Nation.  This new  approach includes the
  establishment  of a new Clean Water  State Revolving  Fund,  for which EPA is requesting

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 $1.2 billion.  This new fund will provide low-interest financing for many wastewater




 projects, including stormwater and Combined Sewer Overflow projects and national




 estuaries protection.   The Administration will be submitting authorizing language for this



 new Clean Water State Revolving Fund to the Congress shortly.




       Besides proposing establishment  of the Clean Water and Drinking Water State




 Revolving Funds, this proposed  budget  requests $80 million for grants to reduce non-




 point source pollution in our Nation's water.  This budget  also proposes further




 investments in U.S.-Mexican border projects that  not only protect  the environment  and




 public health  along the border, but also demonstrate  U.S.  commitment  to the North




 American  Free Trade Agreement.   For these activities we  are requesting  $70 million  for




 the International  Wastewater Treatment  Plant in Tijuana,  $60 million for the Texas and




 New Mexico colonias, and another $20 million for wastewater treatment  plants in



 Nogales, Mexicali, and other places along the  border.








 POLLUTION PREVENTION AND OTHFR KEY INTTf ATTVFS




      We live in an enormously complex global ecosystem where  "solving" one




 environmental problem through the use of end-of-pipe controls can, in many instances,




 create new ones.  To complement tough enforcement  policies, this Administration  is




 committed  to pollution prevention  as the preferred alternative  for  environmental




protection.   The President  has  demonstrated  his personal commitment  by including $23




 million in his Economic Stimulus Package to expand  EPA's voluntary  "Green Programs,"



which promote  energy efficiency  and reduce  greenhouse gas emissions.

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       Moreover, EPA will integrate pollution  prevention  into all Agency programs and
activities, both regulatory and non-regulatory, thus meeting the mandates of the 1990
Pollution Prevention  Act. In 1994 EPA will target a number of high-risk problems using
both voluntary and regulatory approaches,  including pollution prevention.  I also am
committed to fostering more widespread use of market  forces to prevent or reduce
environmental risk and encourage innovative technologies.
       In 1994 the Agency will expand its pollution prevention efforts by: incorporating
pollution prevention  into the Agency's regulatory and permitting  framework; increasing
 support  for state and local government use of pollution prevention; expanding
 collaborative  programs with industry in areas  such as toxic releases,  energy  conservation,
 and water conservation;  creating  government/industry  partnerships  in the development  of
 pollution prevention  technologies; and promoting pollution prevention  in the activities of
 other Federal agencies.
        Besides broadening  EPA's pollution  prevention  efforts, this Administration
 intends to undertake  several other  key initiatives.  For example,  in conjunction with
 other Federal agencies, EPA will expand its lead abatement  program by providing
 technical support  to state  and local officials and lead abatement  contractors.  In FY  1994
 we will strengthen  our scientific  capabilities by improving our health and ecological risk
 research, replacing  obsolete  laboratory equipment,  and upgrading some of our most
 outdated facilities.  Finally, EPA will use $36 million identified  in the  President's
  infrastructure  investment  package  to identify high-priority environmental technology
  needs  and then harness the creativity of people in Federal  agencies, universities, and the

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 private sector to meet them.
 ECOSYSTEM-WIDE PROTECTION




       One fundamental  change at EPA must be an increased  focus on ecosystem-wide




 protection of bioresources.   Because this country must compete within an international




 economic market, our long-term economic well-being is dependent  on managing our




 bioresources within ecological systems  that are sustainable  over the long term.  We




 cannot protect the health and long-term productivity of any species, including human,




 unless we protect  the entire ecosystem  on which they are dependent.




       Some of the proposed FY 1994  investments I've already discussed will help  us




 protect ecosystems.  Financial assistance to state governments for wastewater  treatment




 plants will help  protect the  watersheds  where such systems are  constructed.  Pollution




 prevention can be a powerful tool  when targeted at specific ecosystems.




      In FY 1994 we propose to do even more. For example,  EPA will begin to look at




 ways of developing and implementing an ecosystem protection  strategy that  links all




 relevant  Agency programs.  This approach also will entail better coordination  with  state




 and  local pollution control authorities,  non-government  organizations,  and private




 citizens.  EPA's new approach to ecosystem protection  will include four basic  elements:




 (1) transforming Agency culture to emphasize ecosystems;  (2) assisting state and  local




 leaders to protect  specific ecosystems throughout the country; (3) improving the scientific




 tools needed  to protect ecosystems; and (4) initiating new geographically-defined




programs that emphasize pollution  prevention,  multi-media  enforcement,  research, and

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education.
BF/TTER MANAGEMENT OF PUBLIC RESOURCES




       Of all the changes that this FY 1994 budget proposes, the most significant may be




the changes proposed  in the way the Agency manages its daily business.  My goal is very




clear.  EPA must operate  as a model in terms of its overall management  and, in




particular,  its basic fiscal practices.  Financial integrity,  sound contract management,  and




 streamlined administrative procedures  all go hand in hand,  and  all are critical to




 fulfilling our environmental  mission while using the  taxpayers' resources  wisely.




 Significant steps have been taken in recent  years, but much remains to be done.




        Some of the benefits of better management  can be seen  in EPA's Superfund




 program.  The proposed FY 1994 budget for Superfund, totaling $1.5 billion,




 demonstrates  the Administration's  strong commitment  to protecting human health and




 the environment  through site clean-ups.   At the  same time, this level of funding




 represents a decrease  of $89 million from 1993. I believe that  administrative




 improvements  and streamlining will help us maximize  site clean-ups while minimizing




  overhead and  transaction costs.  Although  responsible  parties currently  are financing




  over 70 percent  of new cleanup projects, some additional  improvement  may be possible




  there.  In short, I believe this Administration's  goals of environmental  protection  and




  deficit reduction can be achieved  simultaneously, and  EPA's proposed  Superfund budget




  for FY 1994 is a good example.



         Resource management problems  are among the most critical issues I will face at

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  EPA over the next four years.  I will work to ensure  optimum management  of all




  extramural  activities, and I will develop a rigorous system of management accountability.




  I am hopeful  that EPA soon will be able to announce important system improvements in



  this  area, such as in the Integrated  Contracts Management System.




        In formulating this proposed FY 1994 budget,  EPA recognized environmental




 needs as well as  the Administration's  efforts to trim the budget  deficit. To this end, we




 have proposed saving approximately  $35 million through workforce reductions  and




 savings based  on the Federal  pay freeze in 1994. The Agency also will be taking




 immediate  steps to save $42 million by streamlining operations and reducing



 administrative  costs.
 CONCLUSION
       This is an exciting time in the  field of environmental protection.  However, this is



 also a time of difficult choices.  It is critical that this new Administration move ahead to



 improve the health of our people and our natural  ecosystems.  We will continue to



 support new environmental initiatives in a variety  of areas.




       We are committed  to the idea  that a strong economy and enhanced



 environmental protection are not contrary goals.  To attain  these goals, we must shatter



 the false choices between environmental  protection and economic growth by creating




 market-based  environmental  protection  strategies that  reward  conservation  and "green-



business practices  while penalizing polluters.  We also must use our presence  as an




international  political  and  economic leader to advance our national interests in a
                                          8

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healthier global environment.



       The new Clinton Administration has a great deal of work to do in the




environmental  arena.  I look forward to working with the President, his Cabinet, my




dedicated  workforce at EPA, state  and local governments, and all the American people




in solving our environmental problems. We must rethink our national environmental




policies in the  context of change -- the change articulated  by President Clinton and Vice




President  Gore, the change demanded  by the American people.   The EPA budget




proposed  by FY 1994 is a good first step.

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                   United States             Communications, Education,
                   Environmental Protection      And Public Affairs
                   Agency                (A-107)
&EPA       Environmental News
                           THURSDAY, APRIL 8, 1993

            CLINTON'S PROPOSED 1994 BUDGET REFLECTS ENVIRONMENTAL
                          GROWTH AND FISCAL SAVINGS

                      Lauren Milone Mical 202-260-4358
           EPA Administrator Carol M. Browner today announced that the

       Administration's jobs package and the fiscal year 1994 budget

       together represent a six percent increase in proposed spending

       for EPA.  In a press conference today, the Administrator

       presented President Clinton's proposed $6.4 billion Agency budget

       for fiscal year 1994.*  This request, when added to the

       Administration's proposed $916 million jobs package for 1993,

       will represent an increase of $375 million (six percent) over

       1993 appropriated levels.

           "The President's proposed Jobs Package and this proposed EPA
       budget are two indicators of the new prominence of environmental
       issues under this Administration," Browner said.  "At a time when
       the American people are demanding better government, more results
       for their tax dollars, and a smaller federal budget deficit,
       President Clinton is proposing to address these issues with a new
       environmental agenda, better management of environmental programs
       and increased federal investment to protect public health and
       natural resources."

           To focus the 1994 resources toward the most serious
       environmental and infrastructure concerns, the proposed FY 1994
       budget for EPA was shaped in large part by four broad goals.
       These goals include: increased assistance to state and local
       governments; expansion of pollution prevention programs and
       several other key initiatives; emphasis on ecosystem-wide
       protection; and better management of public resources in all
       programs .

           The 1994 request includes:

                • $2.7 billion and 13,861 workyears (a workyear is
                the equivalent to one 40-hour a week employee) for
                operating programs;


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                               -2-

          • $1.5 billion and 3,514 workyears for the
          Superfund program;

          • $75 million and 93 workyears for the Leaking
          Underground Storage Tank (LUST) program;

          • $2.05 billion for water infrastructure funding,
          including resources for a Clean Water State
          Revolving Fund and a Drinking Water State
          Revolving Fund.

     "EPA's proposed investments in these areas are a good
indication of how this Administration intends to implement an
agenda of change at EPA," Browner said.

     In addition to the 1994 request, the Clinton Administration,
as part of its jobs package, is seeking $916 million for high
priority activities in 1993.  This package includes resources for
three major components: $845 million to complete the existing
authorization for wastewater SRFs; $47 million for non-point
source grants to help restore watershed resources; and $23
million to promote the use of efficient  'green1 technologies to
reduce energy consumption and foster pollution prevention.

     In formulating the 1994 request, the Agency addressed both
environmental needs as well as the Administration's efforts to
trim the budget deficit. "The budget includes real, tough
decisions about the allocations of resources in the Agency,"
Browner said.  To this end, the EPA has proposed saving
approximately $35 million through workforce reductions and
savings based on no payraise cost-of-living adjustment.  The
Agency will be taking immediate steps to save $34 million by
streamlining its operations and an additional $8 million by
reducing administrative costs for  transportation, travel and
supplies.  Additional EPA program savings also have been targeted
in 1994.

     Through a combination of savings, redirection, and new
investment, the 1994 budget request will provide the resources
necessary to continue to achieve change and make progress in the
environmental protection effort.

R-81                           ###

* Editor's Note: EPA's request represents the appropriations EPA
will seek from Congress.  OMB's budget summary estimates differ
because they include technical adjustments for offsetting
receipts from the public, for example, anticipated cost
recoveries. These differences are normal and occur every year.

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      CONTACTS FOR THE U.S. ENVIRONMENTAL PROTECTION
                  AGENCY'S 1994 PRESIDENTS BUDGET
Comptroller (Acting)

Associate Comptroller

Budget Director (Acting)

Associate Budget Director (Acting)

Budget Planning & Regional    '
     Operations Branch (Acting)

Budget Information Technical
     Systems Branch

Budget Formulation & Control Branch

Prevention, Pesticides & Toxic Substances
     (Budget Division Contact)

Research & Development
     (Budget Division Contact - Acting)

Air & Radiation
     (Budget Division Contact)

Water Quality & Drinking Water
     (Budget Division Contact)

Water Infrastructure Financing/
Drinking Water State Revolving Fund
     (Budget Division Contact)

Hazardous Waste, Superfund &
Leaking Underground Storage Tank
(LUST) Program
     (Budget Division Contact - Acting)

Enforcement
     (Budget Division Contact - Acting)

Management and Support:

     Office of the Administrator
     Office of International Activities
     Office of Administration & Resources
     Management
     Office of Policy, Planning & Evaluation
     Office of the Inspector General
     Office of General Counsel
 Alvin M. Pesachowitz      260-9674

 David J. O'Connor         260-9674

 Elizabeth Craig            260-8340

 Terry Ouverson            260-8340
 ._...--- .'•-"* :">- ~* " ' -  ' •

 Margaret Mitchell         2604157


 William J. Boone          260-3367

 Delia G. Scott              260-1176

 Richard White             260-2914
 Dennis DeVoe             (260-1170)

 Clarence E. Mahan        260-7500
 Mike Feldman            (260-1179)

 Jerry Kurtzweg            260-7415
 Michael Haley            (260-7164)

 Kathi Payne               260-5698
 Dennis DeVoe             (260-1170)
Kathi Payne               260-5698
Dennis DeVoe            (260-1170)
Kathy Gordon             260-4510

Vera Ashworth           (260-1163)

Nancy Hunt               260-8294
Mike Feldman            (260-1179)
Diane Bazzle               260-4057
Joan Fidler                260-0076

Rick Garman              2604083
Mary Free                 260-4020
Michael Binder            2604912
Bill Stewart                260-8888
     (Budget Division Contact)
Michael Haley
(260-7164)

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