Good morning. We are here to consider the budget requests for the fiscal year 2018. This is the second of three hearings halloween the following the hearing last week. Back. Ary zinke, welcome gives nice to be able to you the official tally this morning, make it officially official. I want to start by noting you have taken on top tasks including challenges that have gone unaddressed for years. I think you are off to a good start. I have enjoyed working with you. Appreciated the opportunity to host you and some members here on the committee here and alaska a couple of weeks ago. We had meetings in anchorage, we were on the north slope looking at our considerable potential up there. We attended a memorial day. Eremony at fires lake it was an important and productive time. Our hearing coincides with a big milestone for alaska. Today is the 40th anniversary of first oil moving through our transalaska pipeline. Our 800day in 1977, milelong pipeline carried what is now more than 17 billion oils of oil barrels of southeast. While youopportunity are in alaska to be at the start of the pipeline, mile zero. Along with a couple of others. I believe you saw why alaskans say it is not just a pipeline, it is truly our economic lifeline. We wasted no time signing a secretary order helping us to fulfill that asset. The administration has requested a total of 11. 7 billion dollars in discretionary appropriations for the department of the interior. Overall that is a reduction from 1 billion in the current level, the administrations effort to shift funding. We are going to view all of iese cuts a very carefully, dont expect many to become a reality, especially those that target popular programs. I will also say that the positives in my view outweigh the negatives. Program we cannot support, there is another one that we can and i havent been able to make that statement or a while now. A good example is in the administrations intent to for the gulf coast states. Like most alaskans, i want to expand revenue sharing rather than ended. Frankly, i dont see the puzzle going anywhere, but it is clear that the administration understands that we need to strengthen our Energy Security, because i see proposals for a new fiveyear leasing program, which hopefully will restore i have been asked a couple of times in recent weeks why is now the right time to area, so i want to take a moment to explain why i feel this is so important. First of all, it is critical to understand that we are talking about a part that congress set aside for oil and gas exploration. Governmente federal recommended it be opened for that purpose. Wherewe are at a place alaska we have the highest Unemployment Rate in the country right now. We need more jobs. We have a dire state budget, we need more revenue. With global revenues falling, but Global Demand set to increase, we know the world will need more oil yard by developing 001 of the refuge, an area roughly the size of south carolina, we can create those new jobs, bring Energy Online right when we needed to strengthen our security, strengthen our competitiveness. And this is something that most alaskans strongly support, more than 70 . I also appreciate the administration taking a on aructive approach potential royalty for hard rock minerals. I will be interested to take a look at the study, doi is now conducting. Be to do noal must harm, and that is exactly what i see here. The administrations proposal to good sign. S another piltould note that should be mandatory. So again, while i dont agree with everything in this request, it is better than what we have seen in recent years. It does not rely on budget gimmicks. It focuses on taking care of the lands, the federal government already owns, rather than continuing to buy more. And it will help western states increase the production of our natural resources. Again, secretary zinke, i thank you for being here. I thank you for taking steps to restore alaskas trust. Are reviewingg we the president s proposed by that for the department of the interior. Overall, President Trump is. Roposing to cut funding by. 1 this budget would be devastating to our National Parks, refuges, and other lands. Trust to native tribes. Unfortunately, these priorities put the interest of the fossil fuel industry of ahead of the public land interest by funding for and cuts all other priorities. Intends to tion let me run through the low lights appeared this budget would cut 400 million from the park service budget. It would result in cutting more than 1000 fulltime employees. Departmentsthe own map, nearly 90 of the parks would reduce their current Staffing Levels reducing services to the public. Uses the zinke also budget to obscure the fact that it is cutting a Water Conservation project by 81 . This is our most successful Land Conservation program. Suffice it to say, this budget would pump the rakes on a booming Outdoor Recreation favor ofll in industries having trouble competing in todays marketplace. Meanwhile, the u. S. Geological 163y would be cut by million. We are talking about water and climate science. We are also talking about work on National Hazards that are vital to the public. Secretary zinkes proposal would also cut 11 from in already woefully underfunded bureau of Indian Affairs. These cuts would reduce funding for Tribal Education programs and social services. This is unexpected will unacceptable theould not be surprised administration is proposing it has been attempted by every republican president since the 1980s. I know this will be something we will have continued discussion on, but i think it is also important, that it is the first time that secretary zinke is in front of the committee that we raise other issues. Colleagues and i are particularly concerned about the outrage in the state of washington, but it is also clear there are many other areas. It took the Trump Administration less than 100 days to launch a war on 111 years of a bipartisan Land Conservation. Bears Years National monument in particular, trying to roll back waste,ars is a taxpayer especially at a time when the administration is opposing significant staff cutbacks. Secretary zinkes ears is anh bears upfront to tribes. I think any attempt to undermine the protection of bears ears is illegal and i will strongly oppose any attempt. Administrations is attempting to unilaterally suspend rules that have already gone into effect on the blm methane role. Last week, there was an attempt to suspend the methane role. Ruleis a common sense designed to prevent waste of natural gas. That myple understand colleagues in the senate voted on this recently, but instead of following what the United States senate has said to be done, the department is trying to abandon hundreds of pages of environmental analysis. My colleague, senator udall and i are sending you a memo today saying you must follow administrative procedures. This and make up your own Regulation Without due process. Clearly we have a lot to discuss today. Hearing therd to secretarys statements, but our public lands will be defended and we will have an open discussion about our path forward. Thank you. We are joined again by the secretary of interior, the honorable ryan zinke. He is also joined by olivia the f star who is ferriter. To colleagues that we are scheduled to have two votes commencing at 11 00. It is my intent to keep the committee moving. You may want to figure out when yourre up next and time floor. Go to the it is my understanding we have to conclude at noon. Secretary zinke, you would like to present the Budget Proposal, welcome. Sec. Zinke thank you. It is a high honor to be here today and testify in support of the budget for the department of interior. I do intend to request to submit my entire statement for the record. This is what a balanced budget looks like. There are tough decisions throughout, but if we want to balance of budget, this is a starting point of what a look like. Dget would there hasnt been one around for a while. I fully understand my stewardship responsibilities, because interior touches the lives of more americans than any other department. I take that responsibility very seriously. President s budget proposes 11. 7 billion and saves the taxpayer dollars about 1. 6 billion. We make a Strategic Investments to make sure that energy and national security, and to address the core responsibilities that lie within the department. The budget prioritizes all of the above energy strategy, it oil, gas, coal, over any other strategy, but we also think it is necessary to have a focus on boosting revenue toough legislative proposals the tune of 5. 8 billion. In 2008, the department of revenue made about 18 billion a year in offshore alone. Second to our friends, the irs. Last year, our revenue was 2. 6 billion. That is a drop of 15. 5 billion a year in revenue. When we talk about areastructure, the parks about 11 point five billion dollars behind, which represents 73 of our total gap in maintenance and repair. We would have made up that in scale in one year with the amount of revenue we dropped. So, i will be looking at revenue. One of my first task was a secretary order, and thanks to the ranking member, i did look at revenues across the board and look at royalties, rents, all of the above giving no quarter to gas, oil, wind. If you are going to operate on public land, then the public should have a say, because we are all stewards of our public lands and we want to make sure we have a fair return. The return should be transparent, and it should be trust, but verify. Just that, look at our revenues across the field on public land. When it comes to infrastructure, what is removed from the Budget Proposal is acquisition of a new land. An 11. 5 billion deficit, the priority must need to take care of what we have. Our ability to maintain, i invite you to go up and look at arlington. Arlington is a national disgrace, im talking about the home. Ng up on top, lees through neglect, the shutters are nearly falling off. Disrepair, ite in is a national disgrace. I invite you to take a look at it, because we have to take care of what we own. Budget calls for a 35 million increase for a total of 76 million in part infrastructure. This includes 18 million for the first stage of repairing the arlington memorial bridge. Our backlog in the parks, about half are roads. About one third of those roads are outside our parks. There is a 260 million bill on memorial bridge. Access, gateway roads, outside of what most americans would be a park responsibility. Time in years, payment in lieu of taxes is part of the discretionary budget. Last year it was part of a mandatory budget that did not pass and it was zero. Million and is 397 the reduction is about the same as the other programs, but it is in the budget. We fully fund Fire Suppression at a 10 year average. Firesng forest particularly in the west has become a billiondollar problem. Growing up in the west, investing and making sure we remove dead and dying trees is a prudent expense. We also support indian trust responsibilities, with a core focus on self governments, self determination, and sovereignty. We found savings by reducing federal Land Acquisition, eliminating redundant programs, and allowing states, local communities, and private partners to take the lead on some others. At the end of the day, this is what a balanced budget looks like. There are tough decisions, i fully understand the responsibility of the executives as well as the responsibility of congress. Congress gets a say, and i am glad to be here with you today to go through that. I understand you have a responsibility to each of your states, and i will work with you to make sure we have a budget that represents a great nation. Worldclassa experience on public lands that delivers savings to taxpayers, encouraging responsible energy development, or reorganizing my workforce here it im thrilled to be with you today, and i look forward to your questions and working together. Thank you. Let me start off by bringing up an issue we had had some discussion on both here in committee and off committee. This is as it relates to transfer of federal lands to states. You have often said you do not support that, but you have also acknowledged that alaska is unique. It has some distinctions, and i appreciate that. When we look to alaska lands and what was granted at statehood, the right to acquire more than 104 million acres of land, roughly equal to the size of the state of california, natives were also granted lands to settle aboriginal claims. Today the interior department through the blm effectively acts as a Real Estate Agent to accomplish these Land Transfers. Blm still needs to decide the acres, still needs to review average before the passage can continue. 9. 6 million acres are under adjudication. My a calix, this is a lots of land that is yet to be conveyed. We have been a state for over 50 years, my promises the promises made to alaskan people were made over 40 years ago. I have pushedg through successive administrations, and want to make sure we are on the same page here when it comes to Land Transfers in alaska. I would ask whether you agree that the interior department has a role and obligation to convey federal lands to alaska and to our alaskan native people. Thank you, madam. Alaska is different. About therned surveying process, it is too long. Working on technology and agree how to use technology to get it done. Sen. Murkowski that still remains a little bit of a rub, but i appreciate you were updated on that on your visit to alaska. Sec. Zinke i would like to work with you, there are surveys in the intermediate process, i do not know why we cannot go forward and view those as final and get those moving. You have a veteran issue. They were either not informed or did not take action, and how to provide their right on land. There are multiple ways for, but we need to get it done. I will commit to work with you and get it done. Forward is best path the conveyance to agree and put a time frame on it, and sit down and look at the best technology in order to get it done. A 98 solution today is better than a 100 solution in 15 years from now. Together, i think we can get this done and quickly, certainly the ones done on the intermediate. I think we should propose to move to final and get that section done. Sen. Murkowski noted this is something we need to be working on, but again, these allotments to our alaskan native veterans, those lands to those who are termed the landless natives, there is so much that is yet unfulfilled in terms of promises people ofd to the alaska and our native people. We need to be working to advance them. You signedry order when you are up and that state to increase energy production, again, relevant today, do you have any update for me on the implementation of that order including the revised activity and where you are with implementation of that order . Get theke i will specifics on it, but i wanted to 2 specifically,0 that was set aside to assess. And my responsibility is to do just that, to assess. I dont have the authority to authorize production. That authority lies within congress. My response ability is to make sure assess. Our publicard of land, i think it is important to inventory is. Forwardt is move actively. The 1002 was set aside to do just that. Sen. Murkowski thank you. We look forward to it. I will work with you on getting an update on the other aspects of the plan. Cantwell ntwell . Sen. Thank you for being here. My state is home to two National Parks, and your proposal would cut both parks about 7 . Ofmpic would see a reduction 900,000. I am trying to understand these parks were already underfunded, and the cuts will only make the problem worse. Can you explain why you think cutting these parts and park in the right strategy and balancing a budget . Sec. Zinke infrastructure increased 38 million. That is not a cut. Been secretary, i have been to maine, new utah, montana, alaska, connecticut. I have toured monuments and it is clear that the front line is too thin. My assessment is we have too many middle management and above, and too few in the parks. We are looking at going through a process how to push more assets to frontline. Measurest cutting previous to this is always a regionalized assess up, and we find ourselves too short where we needed in the parks. We need more scientists in the field and less lawyers, but also we are too heavy in the regions and that has taken a toll at our parks. The best funds for parks are through the door. Charge our parks did not visitors last year, and we tier system, and many dont follow the tier system. We have to look at revenue, and publicprivate partnerships. If you go to yosemite, the experience is now going up the freeway. Publicprivate partnerships, how to move people and maintain the experience in the park is important and we are looking at everything. Mr. Secretary, i find the budget so focused on natural gas aspect of a revenue, i think you are neglecting the fact that the generate 124 billion to the government. That versus the 2 billion you are talking about, or 18 billion for oil and gas, i want to make sure we are putting when it comesetal to opportunities. That will generate a lot more revenue for us as government. I wanted to ask you about the believeane role, do you you were responsible with complying with the administrative procedures act . Enteredke i am and we into the record the notification, and we are following and compliant with the law. Sen. Cantwell do think the notice is important to reviewing the regulations . Reviewing the are methane, as you know there was a cra that came close to one vote on it. Sen. Cantwell does that mean you are free to do what you want because it came close . The role stands, right . Sec. Zinke that is not what i said, maam. My position on methane, i think it is a waste. We agree that flaring is a waste. We are looking to make sure we can provide incentives to capture it, because as a steward of your public lands, i think layering it is a waste. We have to make sure we incentivize capture systems and make sure our isolated assets can connect, and make sure the taxpayer is getting a fair valuation on our look holdings. Pres. Reagan my question to you is sen. Cantwell my question is do yo