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Chronological File 1/1/74 - 12/31/74 [8/4/74] [1 of 2]

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THE WHITE HOUSE WASHINGTON The Western White House San Clemente January 1, 1974 Dear Mr. Train: The purpose of this letter is twofold: to express my personal appreciation for your efforts and achievements in the protection of our environment and to convey to you my decision concerning the amount of fiscal year 1975 contract authority to be allotted to the States for construction of municipal treatment works. The Federal Water Pollution Control Act Amendments of 1972 provide authorizations of contract authority for grants to munici- palities. Last year I determined that spending of the maximum rates authorized by the Act would be excessive and I directed that allotments be $2 billion for fiscal year 1973 and $3 billion for fiscal year 1974. The Federal Government must continue its efforts to control spending in order to avoid renewed inflation or a requirement for increased taxes. Accordingly, I direct that you allot among the States $4 billion of the maximum amount authorized for fiscal year 1975. This amount provides for a continued expansion of the program while giving appropriate consideration to competing national priorities for our limited Federal resources. The fiscal year 1975 allotment combined with the more than $3 billion which remains unobligated from previous allotments makes more than $7 billion available for immediate use. These funds will allow the States to construct those high priority projects which are most critical for improving water quality. Sincerely, Honorable Russell E. Train Administrator Environmental Protection Agency Washington, D.C. 20460

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