February 28, 2002

Good morning, Chairman Ehlers, members of the Subcommittee, and staff. I am Conrad C. Lautenbacher, Under Secretary for Oceans and Atmosphere and Administrator of the National Oceanic and Atmospheric Administration (NOAA). I have been invited to speak to you today about H.R. 3389, the "National Sea Grant College Program Act Amendments of 2001," and the Administration's proposal to transfer funding for the National Sea Grant College Program from NOAA to the National Science Foundation (NSF).

Today, I would like to begin by explaining the Administration's proposal. The Sea Grant program plays an important role in marine and coastal research and is a cost-effective way to address new problems in marine research management. The Administration believes the program's full potential can best be realized by transferring it to NSF. Under the Administration's proposal, the current Sea Grant structure would be replaced with a university-based coastal and ocean program modeled after the NSF centers, with input from researchers, educators and practitioners, through workshops. NSF will retain the Sea Grant College designation for qualified centers. The program will be open to all public and private institutions of higher education through a fully competitive process. This process will ensure that the highest quality, most relevant research is funded. NSF also has a lower matching requirement, so state and local funds will be freed up to address outreach and extension needs of local communities. NOAA will continue to be an active partner in the administration of the program and will have a strong role in setting research objectives for the program. To ensure the program transfer does not adversely affect current awardees, NSF will transfer funds to NOAA to support the current award commitments through the duration of their grant period.

Several studies of the Sea Grant Program have noted its effectiveness, as well as its problems. In 1994, the National Research Council (NRC) found that NOAA's Sea Grant Program has played a significant role in U.S. marine science, education, and outreach. This study also pointed out some concerns and provided recommendations for improving program effectiveness. The review's recommendations included better defining the roles of the National Sea Grant Office, the Sea Grant College programs, and the Sea Grant Review Panel, and streamlining the proposal review and program evaluation processes. Many of the recommendations of the NRC report have been adopted by the program and were also incorporated in the 1998 Amendments to the National Sea Grant College Program Act. In a November 2000 study, entitled "A Mandate to Engage Coastal Users," a committee led by Dr. John Byrne of Oregon State University and the Kellogg Commission indicated Sea Grant has been effective in facilitating the Nation's sustainable development of coastal resources by helping citizens make better informed and wiser decisions. Twenty-two of the 30 state Sea Grant Programs have undergone performance evaluations by teams of outside reviewers and Sea Grant peers. Sixteen were graded "excellent" in achieving significant results. A program was graded "excellent" if it produced significant results, connected Sea Grant with users, and was not found to need improvement in areas such as long-range planning and management. Sea Grant's 1999 Hammer Award-winning program in seafood safety training and the national marina management effort are examples of other successful national programs.

Through the years, a number of successful partnerships have been established between NOAA and the National Science Foundation (NSF), such as the Teacher-at-Sea Program, our partnerships with NSF on the U.S. Global Change Research Program and the U.S. Weather Research Program, as well as the Study of Environmental Arctic Change (SEARCH) program. NOAA and NSF are both committed to excellent science and the creation of productive partnerships. There is concern that the Sea Grant program will lose its applied focus because NSF has a stronger orientation toward funding basic research. However, NSF currently supports some applied research programs, such as the Small Business Innovation Research and Technology Transfer programs.

The Administration's proposal to transfer funding for the Sea Grant Program from NOAA to NSF includes a decrease of 20 Full Time Equivalents (FTE) and $62.4 million in NOAA; of that amount, $57 million would be requested by NSF. In this proposal, the current Sea Grant structure, which funds centers largely on a formula basis, would be replaced with a university-based coastal and ocean program. Under the proposal, federal funding for the extension component of Sea Grant may be reduced and extension would not be administered by NSF. However, lower matching requirements will free up state and local funds to cover outreach and extension needs of local communities. The details of the partnership proposal have not been finalized at this time, and we are working with NSF to ensure an appropriate role for NOAA. As noted previously, we expect NOAA will have a key role in establishing research priorities.

As amended, H.R. 3389 would increase authorization levels for Sea Grant to $112 million in Fiscal Year 2004. It also makes organizational changes within NOAA, including transferring NOAA's Coastal Ocean Program from the National Ocean Service to the Sea Grant Program. An amendment, offered by Delegate Underwood in the House Resources Subcommittee, would authorize an additional $2.7 million in funding and technical assistance over a three to five-year period for the Western Pacific Island Consortium. The current Sea Grant Program Act (P.L. 105-160), which expires in Fiscal Year 2003, authorizes $67.8 million for Sea Grant in Fiscal Year 2002 and $68.8 million in Fiscal Year 2003.

The Administration appreciates the interest that Congress has shown in Sea Grant and looks forward to working with Congress on a Sea Grant program that is consistent with the Administration's budgetary and policy goals. The Administration's position is that NSF needs no additional statutory authority to manage a new marine science program. As you are aware, the Administration is interested in identifying ways to further promote merit-based competition and improve the effectiveness of Federal science programs. NOAA's participation as a partner in this program will ensure that research objectives continue to reflect the agency's marine resource management priorities.

The Administration does not support language that would transfer the Coastal Ocean Program from the National Ocean Service to the Sea Grant Program. NOAA is engaged in an agency-wide programmatic review, and the Administration believes it would be premature to undertake any further reorganization until that review is completed.

The Administration also does not support an amendment in H.R. 3389, by Delegate Underwood, to authorize appropriations for the development and approval of a Sea Grant Regional Consortium for the Pacific Islands, independent of the University of Hawaii Sea Grant College Program. Under 33 U.S.C. §1124, "the Secretary may make grants and enter into contracts...to assist any sea grant program or project if the Secretary finds that such program or project will (1) implement the objective set forth in section [33 U.S.C. §1121(b)] and (2) be responsive to the needs or problems of individual States or regions." "State" is defined in 33 U.S.C. §1122 as "any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Mariana Islands, or any other territory or possession of the United States." Existing law already authorizes the Secretary to carry out a program as contemplated in the Underwood amendment. Moreover, the authorizing of appropriations for one specific Sea Grant program or region would be unprecedented and could have the potential to politicize the Sea Grant program. Finally, NOAA already has the authority to award grants under 33 U.S.C. §1124 and, in fact has done so, directly to the University of Guam, independent of the University of Hawaii Sea Grant College Program.

In closing, Mr. Chairman, I would like to emphasize my strong belief that partnerships and teamwork are crucial to success for every government department and agency. NOAA is no exception to this philosophy. Pending a final decision concerning the plan to transfer Sea Grant, we will make every effort to ensure that the program continues to thrive. In the spirit of teamwork and partnership, we will embrace whatever changes may come our way. Until such a move is made, Sea Grant will operate within NOAA in the same professional manner that it has in the past.

Mr. Chairman, this concludes my testimony. Thank you for the opportunity to be here today.
I look forward to answering any questions you or members of the Subcommittee may have.
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