TRADITIONAL BUDGET STRUCTURE
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Procurement, Acquisition and Construction
Total Request : $621,595,000
This appropriation was created in FY 1998 in response to requirements
of the Federal Acquisition Streamlining Act of 1994 and the Information
Technology Management Reform Act of 1996. This appropriation captures funding
for multi-year capital projects and seeks advanced appropriations for projects
that are in the acquisition stage.
NOAA requests a total of $621.6 million for the PAC account, which includes
$4.0 million in recoveries of prior year obligations. Requested funding
for the PAC account is detailed in the preceding Line Office sections that
are programmatically tied to the funding request. PAC funding requests for
Systems Acquisition are discussed in the NWS and NESDIS sections and total
$605.3 million for FY 1999. PAC funding requests for Construction projects
are discussed in the Facilities section and total $20.2 million in FY 1999.
There are no funds requested for Fleet Replacement in FY 1999. Funds to
acquire replacement fisheries research vessels are planned for future budget
requests to replace existing obsolete and deteriorating research vessels
with the first ship identified for FY 2000.
Fisheries Finance Program Account
Total Request: $238,000
Under the authority of the Merchant Marine Act of 1936 and the provisions
of the Federal Credit Reform Act of 1990, the Federal Ship Financing Fund
became a liquidating account for loan guarantees made prior to FY 1992.
New loan guarantees made on or after October 1, 1991, were made under the
Fishing Vessel Obligation Guarantee (FVOG) appropriation. The re-authorization
of the Magnuson-Stevens Fishery Conservation and Management Act in September
1996 changed the program to direct loans, versus loan guarantees and thus
is now titled the Fisheries Finance Program (vice Fishing Vessel Obligations
Guarantees). The Fisheries Finance Program makes long-term fisheries loans
for vessels and shoreside facilities (including aquaculture facilities).
Vessel loans do not increase overcapitalization in the fishing industry
(they either reduce fishing capacity or are capacity neutral).
Capacity-reduction financing complements fisheries management. Program
financing and refinancing help to stabilize vessels remaining in fisheries
and shoreline facilities by providing longer-term debt service more consistent
with the economically useful lives of production equipment and the fisheries'
economic variability. Program financing for retiring of excess competition
is repaid by increasing the productivity of vessels remaining in the fishery.
The Magnuson-Stevens Fishery Conservation and Management Act, as amended,
allows the Fisheries Financing Program to earn interest income at a rate
of 2% above its interest cost of borrowing loan capital from the U.S. Treasury.
The Program income prior to the Magnuson-Stevens reauthorization was 1%,
and the assumed subsidy rate (cost) was 1%. This 1% cost, per the Federal
Credit Reform Act, has been appropriated annually. The President's FY 1999
Budget Request is based upon the 1% subsidy rate; therefore an appropriation
The FY 1999 President's Budget requests an appropriation of $0.24 million
which will provide loan authority of $23.8 million. This request represents
a decrease of $0.1 million for the Fisheries Finance Program account. This
program was funded in FY 1998 above the President's budget request to provide
for entry level and small vessel Individual Fishing Quota (IFQ) obligation
guarantees in the halibut and sablefish fisheries off the coast of Alaska.
Promote and Develop Fishery Products & Research
Pertaining to American Fisheries
Total Request: $3,353,000
The American Fisheries Promotion Act (AFPA) of 1980 authorized a grants
program for fisheries research and development projects and a National Fisheries
Research and Development Program to be carried out with Saltonstall-Kennedy
(S-K) funds. S-K funds are derived from duties on imported fisheries products.
An amount equal to 30% of these duties is transferred to the Department
of Commerce from the Department of Agriculture. The FY 1999 Budget estimates
this transfer at $65.7 million. Of this $65.7 million, $3.4 million will
be used for the S-K grants program to develop a healthy fishery based industry
(including costs of program administration). The remainder of the transfer
($62.4 million) will be used to offset the Operations, Research, and Facilities
Fishing Vessel and Gear Damage Compensation Fund
Total Request: $0
This program was authorized by the Fisherman's Protective Act of 1967,
as amended by P.L. 95-376, Section 10 (f) (1), of September 18, 1978, and
P.L. 96-561 of 1980. This Fund provides compensation to fishing vessel owners
who sustain losses or damage to their gear or vessels attributed to other
fishing vessels. The Fund is supported by a surcharge imposed upon foreign
fishing permit fees and is operated through the appropriation of existing
balances from previous year surcharges and interest earned. No Appropriation
is requested for this fund.
Fishermen's Contingency Fund
Total Request: $953,000
Title IV of the Outer Continental Shelf Lands Act Amendments of September
18, 1978, (P.L. 95-372, Section 402) as amended, established the Fisherman's
Contingency Fund. This Fund provides compensation to domestic fishermen
for the damage or loss of fishing gear, and resulting economic loss due
to obstructions related to oil and gas exploration, development, or production
in areas of the Outer Continental Shelf.
The Fund is supported by assessments on holders of leases, explorations,
permits, easements, and rights of way in areas of the Outer Continental
Shelf. For FY 1999, an appropriation of $0.95 million is requested for claims
and administrative expenses. This amount is equal to the FY 1998 Appropriation.
Foreign Fishing Observer Fund
Total Request: $189,000
The Foreign Fishing Observer Fund provides observer coverage of foreign
fishing activities within the 200-mile Exclusive Economic Zone (EEZ). The
Fund is supported by fees charged to foreign fishermen for the cost of placing
an observer aboard their vessel while operating within the EEZ. Beginning
in FY 1985, foreign fishermen were also permitted to contract directly with
NMFS approved observer contractors to obtain observers (Supplemental Observer
Program). The FY 1999 budget requests $0.19 million, equal to the FY 1998
level. Appropriated funds plus direct contracting under the Supplemental
Observer Program will provide 100% observer coverage.
Coastal Zone Management Fund
Total Request: [$4,000,000]
[To be reflected in ORF]
The Coastal Zone Management Fund was established by the Coastal Zone
Reauthorization Amendments of 1990 (CZARA). Section 308 of this Act authorized
the CZMF to be used first for the administrative costs of the Coastal Zone
Management Act Programs, and second for six other types of projects and
The FY 1999 budget proposes to reduce CZMF obligations from $7.8 million
to $4.0 million. The decrease is necessary due to declining Fund balances.
By the end of FY 1998 the Fund balance will be only $1.1 million. The FY
1999 budget proposes that the entire $4.0 million be used to support CZMA
program administration. This sum will be supplemented by an additional $0.5
million of ORF funds, bringing the total CZMA programs administration request
to $4.5 million. New collections into the CZMF of $4.8 million are anticipated
to be received over the course of FY 1999, however, unexpected events may
reduce collections to less than this amount. Also, these new collections
may not be completely realized until the end of FY 1999, since many collections
occur later in the year. With FY 1999 obligations limited to $4.0 million
and anticipating new collections of $4.8 million, the FY 1999 end-of-year
balance is projected to be $1.9 million.
Damage Assessment and Restoration Revolving Fund
Total Request: ($1,500,000)
The Damage Assessment and Restoration Revolving Fund (DARRF) was established
under Section 1012(a) of the Oil Pollution Act of 1990, to facilitate oil
and hazardous material release response, damage assessment, and natural
resource restoration activities of the National Oceanic and Atmospheric
Administration. The DARRF provides for the deposit of sums transferred by
any party or governmental entity and, to retain for future use, funds that
are recovered through settlement or awarded by court or recovered by NOAA
through negotiated settlement or reimbursement. In FY 1999, receipts from
settlements are expected to be $1.5 million.