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                                                                  Order Code  RS22386
                                                                     February 21, 2006



 CRS Report for Congress

               Received through the CRS Web



         Environmental Protection Agency:

 Highlights of the President's FY2007 Request

                 David  M. Bearden   and Robert  Esworthy
                 Resources,  Science, and  Industry Division

    The President's FY2007 budget request includes $7.32 billion for the Environmental
Protection Agency (EPA), $390 million less than the $7.71 billion that Congress
appropriated in FY2006. Although the President's FY2007 request for EPA is an overall
decrease compared with the enacted FY2006 appropriation, funding for some agency
activities would increase. Proposed changes in funding for selected activities in which
there has been broad congressional interest are characterized below. The following table
indicates specific amounts for EPA's eight accounts and compares the President's
FY2007  request with appropriations enacted by Congress each year since FY2004.

    Although the President's budget would cut funding for a number of EPA activities,
most of the overall decrease is attributed to water infrastructure projects within the State
and Tribal Assistance Grants (STAG) account. In particular, funding would decline for
grants to states to support clean water State Revolving Funds (SRFs). States use these
funds to issue low-interest loans to communities for wastewater infrastructure projects,
such as upgrades for municipal sewage treatment plants. As in past Administration
requests, the President's budget does not include funding in the STAG account that
Congress earmarked in FY2006 for water infrastructure projects in specific communities.
However, grants to states to support the drinking water SRFs would increase slightly.
States use these funds to issue low-interest loans to communities for projects needed to
meet federal drinking water standards and for related purposes.

    The  President's budget would increase funding for the Science and Technology
account, which supports scientific research on human health and environmental effects
of pollutants. This research is used to inform EPA decisions on preventing, regulating,
and abating pollution. Funding would increase within multiple accounts for EPA's
homeland security responsibilities and other ongoing activities. The President's budget
also includes funding for new initiatives that focus primarily on air and water quality.
Although overall funding for the Superfund account would also increase, support for
actual cleanup of hazardous waste sites would decrease, and the funding would continue
to come from general Treasury revenues. A trust fund supported by taxes on industry had
funded most activities within this account. However, the taxing authority expired at the
end of 1995, and the trust fund balance was essentially expended by the end of FY2003.

    This report will be updated to track action on the FY2007 appropriations bill for
Interior, Environment, and Related Agencies, which will include funding for EPA.


       Congressional   Research  Service +0 The Library of Congress

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