Presidential Rationale for Proposed Deferral: Although Congress has already appropriated funds under substantive legislation signed by the President in January, 1975 (The Community Services Act). the President has now proposed new legislation, and does not want to continue the on-going program pending Congressional action on the new proposal, which would be implemented through the Federal Energy Administration.

Committee Recommendation:

The Committee does not approve the deferral of $16,500,000 proposed for the Emergency Energy Conservation Services program. The House has not yet taken official action on this proposal. Although Congress has already appropriated funds under substantive legislation signed by the President in January, 1975 (the Community Services Act), the President has now proposed new legislation, and does not want to continue the on-going program pending Congressional action on the new proposal. However, since the Senate has not yet acted on this proposal, it is clear that appropriations could not be provided in time for proper planning to take place to meet this winter's energy needs. Funds available since July 1, 1975, under terms of the continuing resolution, should be immediately spent. Winterization projects, such as insulation of houses of low-income persons, should be completed before the onset of cold weather.

This program is for energy conservation services in poverty neighborhoods. The Community Services Administration already has 900 local agencies throughout the country in poverty neighborhoods.

By utilizing the existing Community Services Administration agencies, it would not be necessary to waste money on more Federal bureaucrats and thus have more money for direct energy services.

The Community Services Administration has already developed a lot of experience operating energy conservation services projects at the local level. It has been operating successful pilot projects, totalling about $20 million, for each of the past two years.

Applications for grants from the Community Services Administration already exceed $100 million for energy programs. The Community Services Administration is expected to act quickly to immediately fund the most crucial of these proposals.

The Committee is concerned that the Community Services Administration is not following Congressional intent with regard to applying the appropriate amount for short-term assistance, including loans and grants to eligible individuals, to help them avoid utility cut-offs in instances where they temporarily cannot pay utility bills. The Committee directs the Community Services Administration to report within 45 days the amount of funds utilized for this purpose.

Once this deferral is denied by the Senate, the Committee strongly urges that no further deferrals be submitted for any

S.R. 402

additional funding which may be provided in the fiscal year 1976 Labor-HEW Appropriations Act. The Committee would consider a deferral of the funds to be appropriated in the fiscal year 1976 Labor-HEW Appropriations Act an undermining of the budgetary process, since Congress has clearly indicated its intention that the fiscal year 1976 funds appropriated for the Emergency Energy Conservation Services program remain available for obligation.

O

S.R. 402

SEPTEMBER 30 (legislative day, SEPTEMBER 11), 1975.-Ordered to be printed

Mr. MCCLELLAN, from the Committee on Appropriations, submitted the following

REPORT

together with

VIEWS

of the Committee on the Budget

[To accompany H.R. 9600]

The Committee on Appropriations, to which was referred the bill (H.R. 9600) to rescind certain budget authority recommended in the message of the President of July 26, 1975 (H. Doc. 94-225, S. Doc. 91-93), transmitted pursuant to the Impoundment Control Act of 1974, reports the same with the recommendation that the bill be passed, and submits the following explanation of its recommendation, together with the views of the Committee on the Budget, to which the bill was also referred.

SUMMARY OF THE BILL

This is the first rescission bill to be reported by the Committee on Appropriations during fiscal year 1976 under the provisions of Title X of the new Congressional Budget and Impoundment Control Act of 1974 (Public Law 93-344), July 12, 1974.

The Presidential message of July 26, 1975 contains five rescissions which have not been acted on by the House. This bill and report reflect the recommendations of the Committee on Appropriations on those items. In addition, the Presidential message of July 1, 1975

(S. Doc. 94-70), transmitted 3 rescissions which are discussed in the report but are not included in the accompanying bill. Further, the Comptroller General, on June 19, 1975 notified the Speaker of the House (H. Doc. 94-193) that there was in fact a rescission of budget authority in the College Housing Programs of HUD in the amount of $964,000,000. Thus there are 9 rescissions pending before the Congress. The Committee is recommending approval of one rescission.

ACTIONS IN OTHER THAN RESCISSION BILL

In two instances, rescissions addressed in this report have been accomplished in the 1976 regular appropriation bills. Rescission 75-901 (College housing loan program) was negated by House and Senate action in passing the HUD-Independent Agencies Appropriation Act for 1976 which included a transfer of $964,000,000 from the College Housing program to other HUD programs. Funds identified in Rescission 76-2 (access highways to public recreation areas on certain lakes) in the amount of $25,000,000 were rescinded in the Transportation and Related Agencies Appropriation Act, 1976. That bill includes a direct appropriation of $10,000,000 for access highways to public recreation areas on certain lakes-a net reduction in budget authority of $15,000,000.

SUMMARY TABLE

A summary table on rescissions follows which shows the items that are recommended for rescission and those items that the Committee is not recommending for rescission. The views of the Committee on the Budget are shown on page 11.