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Global Climate Change Digest
A Guide to Information on Greenhouse Gases and Ozone Depletion
Published July 1988 through June 1999

FROM VOLUME 2, NUMBER 3, MARCH 1989

NEWS...
1990 EPA BUDGET

Item #d89mar5

President Reagan's fiscal year 1990 budget for the U.S. Environmental Protection Agency totals $4.9 billion, a nine percent increase from 1989. One area EPA will emphasize is global warming, through direct research funding and through increased emphasis on long-term research. (See Global Climate Change Digest, NEWS, Feb. 1989.)

The budget also proposes an auction system for assigning rights to produce or import chemicals to be limited under the Montreal Protocol on Substances That Deplete the Ozone Layer, which takes effect in July. The system, intended to eliminate windfall profits to industry as a result of CFC regulation, is similar to that proposed by EPA last August. It differs from the present approach of assigning rights to firms that have dealt with CFCs in the past. Estimated income to the U.S. Treasury from the scheme is $400 million in fiscal year 1990, and twice that the following year. CFC producers feel they should use any such profits to develop substitutes.

For a detailed discussion of the EPA budget, see Environ. Rptr. Curr. Devel., 1827-1831, Jan. 13, 1989; for the CFC fee system see ibid., 1832-1833, and Air/Water Pollut. Rep., p. 37, Jan. 30.