1. Citizens Advisory Committee May 25, 2017
Budget, Appropriations and the Chesapeake Bay Program Jim Edward - CBPO Deputy Director
Citizens Advisory Committee
May 25, 2017

2. Overview Timeline CBP Authorization Budget Process
Appropriations Process
Where are we now?
2017
2018
Possible Scenarios
New CBP Budget And Financing Web Pages

3. FY2018 Budget-Appropriations Timeline
Phase I – Planning w/OMB
Oct ‘15-Sep ‘16
Phase 2 - OMB Review
Oct ‘16 – Jan ‘17
Budget Release
Feb ‘17
Phase 3 Congressional Appropriations
May ‘17 - Sept ‘17
New Fiscal Year – FY18
Oct. 1, 2017
You are HERE
The Federal Budget process is an information-intensive mix of bottom-up formulation and top-down guidance.
- The Budget process NORMALLY begins a full 18 months or more before the start of the fiscal year in question – when federal agencies begin their internal budget planning.
During the Fall, agency requests are completed and submitted to OMB for review. They review the requests, decide what the Administration will and will not support, and notifies agencies of these decisions through “passbacks,” usually issued in late November.
This year because of elections, passbacks occurred in late January. Still the White House only provided programmatic language but they did not include the funding levels.
The agencies can then either accept OMB’s decisions or, more often, appeal.
OMB and the agencies must hash out their differences in time for the President’s budget submission to Congress – required by the first Monday in February. Typically it’s late during a new president’s first year.
- This year the “Skinny Budget” or Budget Blueprint was submitted to Congress on March 16. The full budget is not anticipated until May 15.
- The most public portion of the cycle is the Congressional process, typically beginning in the spring before the fiscal year starts.

4. CBP Authorization and Appropriation
Clean Water Act, Section 117, provides authority for the Chesapeake Bay Program and directs the EPA to maintain a Chesapeake Bay Program Office (CBPO) and to coordinate many of the activities of the program. It was last amended Nov. 7, 2000
CBP’s current maximum authorization level is set at $40 million per year (through 2005).
Okay to exceed that level – and has for years.
CBP’s current congressional appropriations funding level is $73 million

5. Current Conditions:
FY 2017 Appropriations process completed May 5, 2017; Full funding for CBP ($73 million) and all geo programs.
FY2018 President’s Budget – Proposes eliminating all CBP and geo programs funding.
President’s Comprehensive Plan for Reforming the Federal Government and Reducing the Federal Civilian Workforce issued April 2017
Submission of FY2018 full Presidents Budget to Congress planned for May 22, 2017. 

6. in the Proposed FY2018 Presidential Budget (3/17)
Pluses and Minuses
in the Proposed FY2018 Presidential Budget (3/17)

7. FY2018 President’s Budget (03/17)
Proposed elimination of funding in FY 2018 for:
CBP, Great Lakes Restoration Initiative, NEPs and other geographic programs
Sea Grant Program, Coastal Zone Management Program, and National Estuarine Research Reserve Program in NOAA.
Proposed reductions in funding for:
Overall EPA funding by 31%; CWA Sec. 106 and Sec. 319 funding, etc.
Funding for the National Science Foundation, National Institutes of Health (-18%), EPA's Office of Research and Development (-48%), NOAA's extramural research grants, National Institute for Standards and Technology (NIST), NASA's Earth science portfolio, and the U.S. Geological Service (-15%)
Some reductions would take place retroactively in 2017: NSF, Sea Grant, NOAA and NIST.

8. Appropriations Process
The President’s Budget conveys the White House’s desired funding levels. But, it is Congress that actually grants the funding through 12 appropriations bills which
Step 1: Congress passes annual budget resolution which sets the overall framework for funding. It is not actually law, but essentially binds appropriation decisions later. They establish the top-line numbers for revenues, mandatory or direct spending, and discretionary spending. Should be completed by April 15, but often delayed.
Step 2: House Appropriations Committees and subcommittees produce spending bills followed by Senate appropriations committees.
Step 3: President signs funding bills into law.

9. Possible Appropriations Scenarios
FY 2018
President’s Budget or similar reductions
Congress ignores and enacts current funding levels
31% reduction or some other % reduction
CBP staff looking at multiple scenarios for adjusting to possible reductions or a complete elimination of Section 117 funds.

10. Support for CBP Funding
Bipartisan House letter in support of level funding (five Republicans and 12 Democrats)
Senate letter in support of CBP appropriations of $73 million for CBP, SRS, Sections 319 and 106, Land and Water Conservation Fund, NPS programs and Oyster Recovery Project. Bi-partisan support (9 of 12 CBW Senators; at least 1 from each Bay state)
CBC support and request to meet with Administrator on May 5th.
CAC and LGAC letters of support!
NGO support: Choose Clean Water Coalition, Chesapeake Bay Foundation, etc.

11. FY2017 CBP Grants
EPA/CBPO provided partial funding of the CBRAP, CBIG, and Local Implementation funding for each jurisdiction at a 50% level. (BUT, grant applications should reflect full year funding)  
Partial funding of other grants and interagency agreements as well.
CBPO is in the process of notifying grantees and other funding recipients of final FY2017 funding levels.

12. Fiscal Year 2016 Program Areas of Interest – Attachment G (in millions)
FTE
CB Operations - Intramural
$5,122
22.2
CB Operations - Extramural
$8,709
Nontidal Water Quality & Accountability Monitoring Grants
$2,622
Tidal Water Quality Grants
$2,156
TMDL Development
$3,000
Reporting & Accountability
$1,085
Permit Review & Rule Implementation
$3,892
8.6
Enforcement
$1,493
7.4
Clean Water Rules & Guidance
$462
1.7
ChesapeakeStat
$1,516
Small Watershed Grant Program
$6,000
Innovative/Competitive Grants
State Implementation Grants
$30,943
Total
$73,000,000
39.9

13. Fiscal Year 2016 Chesapeake Bay Program Funding
% Allocated
FTE
Region 2
$224,000
0.31%
0.3
Region 3
$69,501,000
95.2%
35.2
Philadelphia
$4,543,259
6.2% 13
Annapolis
$64,957,741
89%
22.2
Office of Water
$60,000
0.08%
Office of Enforcement and Compliance Assurance
$675,000
0.92%
2.7
Office of General Counsel
$462,000
0.63%
1.7
Office of Environmental Information
$1,516,000
2.08%
Office of Administration and Resources Mgmt.
$562,000
0.78%
Total
$73,000,000
100%
39.9

14. Fiscal Year 2016 Chesapeake Bay Program Office Funding
Intramural
$5,122,000
Extramural
$8,029,741
Operational Support
$2,836,327
Partnership and Executive Order Support
$3,164,322
Data Management
$2,029,092
TMDL Implementation
$3,000,000
Reporting and Accountability
$1,085,000
Innovative Nutrient/Sediment Reduction Grants
$6,000,000
Small Watershed Grants
Water Quality Monitoring Grants
$4,778,000
State Accountability and Implementation Grants
$30,943,000
Total
$64,957,741

17. State Implementation Funding Amount Delaware $ 2,593,265
Total
$ 34,796,701
CBIG
$ 12,732,499
CBRAP
$ 11,297,101
Local Government (Local)
$ 4,999,720
WIP Assistance (WIP)
$ 503,039
Monitoring
$ 3,776,142
Water Protection Division (WPD)
$ 1,468,200
Non-CBPO funds
$ 20,000
Delaware
$ 2,593,265
$ 1,250,000
$ 820,465
Local
$ 366,000
WIP
$ 66,800
WPD
$ 90,000
District of Columbia
$ 2,485,820
$ 1,282,500
$ 723,036
$ 322,784
$ 50,000
$ 107,500
Maryland
$ 9,709,012
$ 2,765,700
$ 2,758,047
$ 1,231,270
$ 96,239
$ 1,734,966
$ 1,102,790
New York
$ 2,746,878
CBIG
$ 1,250,000
CBRAP
$ 1,007,224
Local
$ 449,654
WIP
$ 40,000
Pennsylvania
$ 7,129,388
$ 2,515,700
$ 2,666,819
$ 1,190,544
$ 160,000
Monitoring
$ 471,325
WPD
$ 125,000
Virginia
$ 7,657,311
$ 2,418,599
$ 2,649,199
$ 1,139,329
$ 90,000
$ 1,360,184
West Virginia
$ 2,475,027
$ 672,311
$ 300,139
$ 209,667
$ 42,910

19. New Budget, Financing and Funding Web Pages Links
- Focuses more on Funding related to implementation of the Bay Watershed Agreement. Audience: Engaged CBP stakeholders.
Overall funding information plus financing and economic benefit resources. Audience: Interested public.

20. EPA Priorities: High-level Overview
Guiding Philosophies
Rule of law: EPA’s work won’t go anywhere if it constantly faces legal challenges. By administering laws enacted by Congress and issuing environmental rules tethered to those statutes, EPA can achieve so much more for the protection of human health and our environment.
Cooperative federalism: States and tribes are our partners in enforcing environmental laws and programs—EPA wants to build trust and a strong working relationship with these partners to get results for all Americans.
Public participation: EPA’s authority is derived from the democratic process, and that process is made more credible by engaging with the diverse views of the American public, and addressing stakeholder input on the impacts of rules on families, jobs, and communities.

21. EPA Priorities: High-level Overview - continued
The core philosophies will guide our work to advance progress in key priority areas:
Supporting Core Drinking Water and Clean Water Infrastructure Projects
Restoring Contaminated Sites to Productive Use, Creating Jobs and New Economic Opportunities
Attaining Air Quality Standards
Implementing TSCA Reform Legislation, Instilling New Confidence and Safety for American Families
Ensuring Sound Science and Research
Detecting Non-Compliance and Performing Required Federal Inspections
Building a Stronger, More Responsive EPA

22. QUESTIONS?