THE WHITE HOUSE

Office of the Press Secretary

Cancellation No. 97-82

CANCELLATION OF
DOLLAR AMOUNT OF DISCRETIONARY BUDGET AUTHORITY Report Pursuant to the Line Item Veto Act, P.L. 104-130

Bill Citation: Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1998 (H.R. 2267)

1(A). Dollar Amount of Discretionary Budget Authority: $5,000 thousand for a cooperative agreement with Montana State University for a research program on green buildings on page 37 of the enrolled bill (H.R. 2267) and on page 142 of House Report 105-405 (Joint Explanatory Statement of the Committee of Conference), dated November 13, 1997.

1(B). Determinations: This cancellation will reduce the Federal budget deficit, will not impair any essential Government functions, and will not harm the national interest.

1(C), (E). Reasons for Cancellation; Facts, Circumstances, and Considerations Relating to or Bearing Upon the Cancellation; and Estimated Effect of Cancellation on Objects, Purposes, and Programs: H.R. 2267 provides $5 million for a cooperative agreement with Montana State University (MSU) for research on green buildings. This project circumvents the National Institute of Standards and Technology's (NIST) research selection process and meets no clear agency need. NIST labs do not provide large, open-ended research grants to external facilities. With the proposed research conducted entirely at MSU, NIST has no leverage to oversee its quality or relevance. Similar grants in FY 1994 and FY 1997 were not requested by the Administration, and have shown no demonstrated benefits to NIST's mission. By diverting scarce resources to a non-federal facility, this project damages NIST's ability to chose projects for their national benefit and technical merit. As the proposed demonstration lab does not meet NIST's research needs and is far from existing facilities, this project's benefits would accrue primarily to Montana State University.

1(D). Estimated Fiscal, Economic, and Budgetary Effect of Cancellation: As a result of the cancellation, Federal outlays will not increase, as specified below. This will have a commensurate effect on the Federal budget deficit and, to that extent, will have a beneficial effect on the economy.

Outlay Changes (in thousands of dollars)

   FY 1998  FY 1999  FY 2000  FY 2001  FY 2002  FY 2003-07     Total
     -----   -3,850   -1,050     -100    -----       -----    -5,000

1(F). Adjustments to Non-Defense Discretionary Spending Limits: Budget authority: -$5,000 thousand in FY 1998 Outlays: The estimated outlay effect for each year is shown above.

Evaluation of Effects of These Adjustments upon Sequestration Procedures: If a sequestration were required, such sequestration would occur at levels that are reduced by the amounts above.

2(A). Agency: Department of Commerce
2(A). Bureau: National Institute of Standards and Technology 2(A). Governmental Function/Project (Account): Research and Development (Scientific and Technical Research and Services)

2(B). States and Congressional Districts Affected: Montana, At Large

2(C). Total Number of Cancellations (inclusive) in Current Session in each State and District identified above: Montana: five