[Congressional Record Volume 141, Number 17 (Friday, January 27, 1995)]
[Extensions of Remarks]
[Pages E204-E205]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


             PUBLIC RESOURCES DEFICIT REDUCTION ACT OF 1995

                                 ______


                           HON. GEORGE MILLER

                             of california

                    in the house of representatives

                        Friday, January 27, 1995
  Mr. MILLER of California. Mr. Speaker, yesterday we passed a balanced 
budget amendment. Today I am introducing the Public Resources Deficit 
Reduction Act of 1995, which will help us reach the goal of a balanced 
budget. This bill will take a first step toward eliminating the waste 
of public resources for private profit at the taxpayers' expense. As we 
consider options for reducing the deficit, this is a critical 
initiative that will bring in billions of dollars annually to the 
Treasury. In our necessary examination of Federal payments to all 
sectors of our society, corporate welfare programs must not be spared 
the budget axe.
  This bill will restore public trust and fiscal accountability in our 
natural resource programs. It will require the Federal Government to 
receive a fair-market return on all its natural resources. It will also 
authorize recovery of fees from natural resource program beneficiaries 
to cover the costs of program administration.
  Currently, public lands that belong to all Americans are managed for 
the benefit of a few special interests. The need for reform of these 
subsidy policies was highlighted last year in a report by the staff of 
the Natural Resources Committee, ``Taking from the Taxpayer: Public 
Subsidies for Natural Resource Development.'' That report documents the 
dizzying array of subsidies available to natural resource industries. 
It's time to ask businesses operating on our western public lands to 
stand on their own two feet, rather than on the shoulders of 
hardworking taxpayers.
  Recent polls show that the American people expect a fairmarket return 
for sales of their resources. This bill includes long-overdue reforms 
of mining, oil and gas leasing, logging, recreation, and grazing 
policies. It also eliminates the subsidies available to consumers of 
water and power provided by Federal projects. The reforms mandated here 
will begin us on the road toward eliminating the unwarranted the 
unwarranted overlapping subsidies received by these industries.
  Many of the initiatives included in this bill have been proposed in 
the past, and several have previously passed the House of 
Representatives. Together, they will save billions of dollars annually, 
while assuring the American people a fair return on their assets.
  Each year, we spend hundreds of millions of dollars on taxpayer 
subsidies to natural resource industries. These expenditures are not 
included in the Federal budget process, and there is no oversight of 
the corporations and individuals who benefit from these policies. This 
bill will require the Federal
 Government to start accounting for these expenditures in the annual 
budget submission to Congress.

  Last year the House overwhelmingly approved legislation rewriting the 
outdated mining law of 1872, which currently allows companies to remove 
minerals for free and to purchase public land for as little as $2.50 
per acre. This new bill follows last year's in calling for an 8 percent 
royalty rate on hardrock minerals such as gold, silver, and copper. It 
also puts an end to ``patenting,'' which permits mining companies to 
buy public land at bargain basement prices. This provision will stop 
the continuing drain of billions of dollars under the current mining 
law; in May 1994 a Canadian company, American Barrick, paid a mere 
$10,000 for land in Nevada that will yield approximately $10 billion 
worth of gold.
  This bill includes a major overhaul of policies for concessions 
operating the national parks, which also passed the House last year. 
The current system of fees and licenses for park concessioners gives 
special benefits to these businesses, rather than ensuring that the 
taxpayer receives a fair return from these park uses. A 1994 report 
prepared by the staff of Senator William Cohen concluded, ``Each year, 
the Federal Government relinquishes the opportunity to collect hundreds 
of millions of dollars in rent and franchise fees from private firms 
who have the exclusive right to operate concessions on Federal lands.'' 
This bill will bring charges for park concessions into line with the 
value of the resources used.
  This legislation also requires that the Government charge fair-market 
rates for grazing permits, which currently lag well below rates charged 
on private and State lands. In addition to charging the going rate for 
Federal grazing leases, hundreds of millions of dollars in direct 
payments to ranchers for livestock feed will be halted. Furthermore, 
grazing fee rebates to local ranchers, which have been used in the past 
to sue and lobby the Government, will be retained instead in the 
Treasury
  Additionally, this legislation will reform Forest Service management 
of timber sales on public lands. The Government frequently sells timber 
at less than the cost required to administer the sale and build roads 
for timber companies. This bill will ensure a fair return for the 
taxpayer by forbidding these below-cost sales. It also will move all 
timber receipts on budget so that revenues go directly into the U.S. 
Treasury, rather than into unaccounted funds for local use.
  Irrigators using Federal water have benefited from multiple subsidies 
and now pay far below the fair-market cost for the water. In some 
cases, they pay a hundred times less per acre-foot than neighbors who 
purchase water from the State or from private entities. This bill will 
require that all new water contracts sell the water at market rates, 
and eliminate the use of federally subsidized water to irrigate surplus 
crops. This bill will also require that the value of the Federal 
subsidy in existing water contracts be included in the cap on 
Government agricultural payments.
  This legislation gives Members of Congress who profess concern for 
the deficit, for Federal spending, and for getting Government out of 
business the opportunity to demonstrate their sincerity on these 
issues. The array of proposals we have heard in the last weeks has not 
addressed the problem of corporate welfare. They don't want to deliver 
surplus commodities to school children, but they will give away the 
Nation's gold and silver to foreign corporations. They want to charge 
people to visit the U.S. Capitol, but they don't want to charge fair 
prices to special interests operating in national parks. They don't 
want to subsidize rent for poor working families, but they will 
subsidize the rent for cows on public lands.
  It is time for a review of all these programs. I am introducing this 
legislation today to start that review.
                 Public Resources Deficit Reduction Act


                      Section-by-Section Analysis

       Sec. 1. Short Title and Table of Contents.

                      Title I--General Provisions

       Sec. 101. Fair Market Value for Resources Disposal.--This 
     section requires that fair market value be recovered for 
     disposal of federal resources, including minerals, timber, 
     forage, water and hydropower. The requirement is to be phased 
     in at the end of 5 years. The President may waive the 
     requirement upon a finding that a waiver is in the national 
     interest.
       Sec. 102. Fees from Program Beneficiaries.--This section 
     authorizes the Secretaries of Agriculture and the Interior to 
     charge user fees covering the costs of administering federal 
     programs. Further, the section requires immediate imposition 
     of such a fee for oil and gas lease transfers.
       Sec. 103. Revenues from Sale, Lease, and Transfer of 
     Assets.--This section requires that the annual budget 
     submission from the President include an accounting of the 
     subsidy involved in disposal of any federal assets.

                  Title II--Revenue from Mining Claims

       Sec. 201. Definitions.--This section defines the terms 
     ``locatable mineral,'' ``mineral activities,'' 
     ``exploration,'' ``mining,'' ``beneficiation,'' 
     ``processing,'' ``mining claim'' and ``Secretary'' for 
     purposes of Title II.
       Sec. 202. Mining Claim Maintenance Requirements.--This 
     section requires mining claim holders to pay an annual fee of 
     $100 for maintenance of each claim. The claim may be waived 
     by the Secretary of the Interior for those holding less than 
     10 claims.
       Sec. 203. Royalty.--This section requires payment of a 
     royalty of 8% of gross income for production of hardrock 
     minerals on federal lands. The section further provides for 
     record-keeping and reporting, requires the collection of 
     interest for underreporting, and authorizes the collection of 
     penalties for underreporting.
       Sec. 204. Severance Tax.--This section establishes an 8% 
     severance tax for hardrock minerals produced on nonfederal 
     lands, including those lands already patented out of federal 
     ownership.
       Sec. 205. Fund for Abandoned Locatable Minerals Mine 
     Reclamation.--This section authorizes the establishment of a 
     fund for reclamation of land and water affected by past 
     mining activity. The section further requires that the 
     royalties collected under section 203 and the severance tax 
     collected under section 204 be credited to the fund.
       Sec. 206. Limitation on Patent Issuance.--This section 
     prohibits further patenting of federal land for mining claims 
     and millsites established after the date of introduction of 
     this bill.
       Sec. 207. Purchasing Power Adjustment.--This section 
     requires that fees imposed 
     [[Page E205]] under this act be adjusted every 10 years, 
     according to the Consumer Price Index.
       Sec. 208. Savings Clause.--This section provides that 
     nothing in this act should be construed as modifying existing 
     limitations on the application of the general mining laws.
       Sec. 209. Effective Date.--This section provides that Title 
     II shall take effect one year from date of enactment of this 
     act, except as otherwise provided in section 206.

                           Title III--Helium

       Sec. 301. Amendment of Helium Act.--This section provides 
     that all references within this title are to be considered 
     references to the Helium Act.
       Sec. 302. Authority of Secretary.--This section authorizes 
     the Secretary of the Interior to continue extraction and 
     disposal of helium from public lands. In addition, the 
     section requires the Secretary to cease production, refining 
     and marketing, and requires disposal of equipment used for 
     these purposes, 1 year after the date of enactment of this 
     act. The section further authorizes the Secretary to impose 
     fees to recover the full cost of providing services for 
     storage, transportation, and withdrawal of helium.
       Sec. 303. Sale of Crude Helium.--This section requires that 
     funds from sales of refined helium and extraction of helium 
     on public lands be credited toward repayment of the federal 
     investment in the helium reserve.
       Sec. 304. Elimination of Stockpile.--This section requires 
     that excess helium in the federal helium stockpile be sold 
     off, beginning by the year 2005 and ending by the year 2015.
       Sec. 305. Repeal of Authority to Borrow.--This section 
     repeals the Secretary's authority to borrow under the Helium 
     Act.

         Title VI--Use or Disposal of Federal Natural Resources

       Sec. 401. Annual Domestic Livestock Grazing Fee.--This 
     section requires that the annual grazing fee for grazing 
     leases on public lands be set at fair market value beginning 
     in the 1996 grazing season. The section further requires that 
     funds from federal receipts be used for restoration, 
     enhancement, and management of federal lands.
       Sec. 402. Elimination of Below-Cost Timber Sales of Timber 
     from National Forest System Lands.--This section requires 
     that sales of timber from the National Forest System be based 
     on a minimum bid that will cover all costs of the sale, 
     including overhead. The section further requires that the 
     cessation of below-cost timber sales be phased in over 5 
     years.
       Sec. 403. Timberland Suitability.--This section requires 
     that, in developing land management plans for the National 
     Forests, the Secretary of Agriculture take into account the 
     economic suitability of lands for timber production, 
     including in the ``timber base'' only lands upon which sales 
     of timber will cover all costs of the sales.
       Sec. 404. Cost of Water Used to Produce Surplus Costs.--
     This section requires that federal irrigation water from the 
     Bureau of Reclamation that is used to grow surplus crops be 
     paid for at the ``full cost'' rate set in the Reclamation 
     Reform Act of 1982.
       Sec. 405. Reduction in Maximum Amount of Payments under 
     Agricultural Assistance Programs to Reflect Receipt of 
     Federal Irrigation Water.--This section requires that payment 
     limits on agricultural price supports and crop disaster 
     assistance include the value of the subsidized water an 
     irrigator receives from the Bureau of Reclamation.
       Sec. 406. Off Budget Expenditures.--This section moves into 
     the General Fund of the Treasury timber receipts formerly 
     paid into the Knutson-Vandenburg fund, the brush disposal 
     fund, the roads and trails fund and the timber salvage sale 
     fund.
       Sec. 407 Deposit of Taylor Grazing Act Receipts in 
     Treasury.--This section eliminates the authorization for 
     payment out of the Treasury of a portion of grazing fee 
     receipts.
       Sec. 408. Repeal of Livestock Feed Assistance Program.--
     This section repeals the authority of the Secretary of 
     Agriculture to provide free livestock feed to ranchers.
       Sec. 409. Communication Permits.--This section requires 
     that permits for the use of communications sites on public 
     lands must be established at fair market value as of October 
     1, 1995.
       Sec. 410. Oil and Gas Rentals.--This section requires that 
     oil and gas rental prices for leases on public lands be set 
     at fair market value.

                   Title V--National Park Concessions

       Sec. 501. Findings and Policy.--This section establishes 
     Congressional findings and policy for this title.
       Sec. 502. Definitions.--This section defines the terms 
     ``concessioner,'' ``concession contract,'' ``facilities,'' 
     ``franchise fee,'' ``fund,'' ``park,'' ``proposal'' and 
     ``Secretary'' for purposes of Title V.
       Sec. 503. Repeal of Concessions Policy Act of 1965.--This 
     section repeals the Concessions Policy Act of 1965. This 
     section further provides that existing contracts issued under 
     that Act shall remain in force.
       Sec. 504. Concession Contracts and Other Authorizations.--
     This section authorizes the Secretary of the Interior to 
     award concessions contracts and authorizations for
      other visitor services in the National Parks as necessary 
     and appropriate to accommodate park visitors.
       Sec. 505. Competitive Selection Process.--This section 
     requires competitive bidding for concessions contracts, with 
     selection based on price and other criteria to determine 
     entity best qualified to provide services. This section 
     further provides a limited preferential right of renewal for 
     certain outfitting and guide contracts, and certain contracts 
     with gross receipts under $500,000.
       Sec. 506. Franchise Fees.--This section authorizes the 
     Secretary to establish minimum franchise fees at levels that 
     will allow concessioners to realize a profit.
       Sec. 507. This section authorizes the establishment of a 
     special account within the Treasury to receive payment of 
     franchise fees.--This section further authorizes that in some 
     cases a concessioner may maintain a separate Park Improvement 
     Fund where its fees are deposited for use within the park.
       Sec. 508. Duration of Contract.--This section requires that 
     concession contracts be established for no longer than 10 or 
     20 years.
       Sec. 509. Transfer of Contract.--This section prohibits 
     transfer or assignment of concession contracts without 
     approval of the Secretary.
       Sec. 510. Protection of Concessioner Investment.--This 
     section provides concessioners a ``possessory interest'' in 
     structures and fixtures constructed under the terms of 
     existing contracts. The section further provides that future 
     structures and fixtures must be depreciated and the 
     concessioners may maintain an interest only in the non-
     depreciated portion.
       Sec. 511. Rates and Charges to Public.--This section 
     requires the Secretary to judge the reasonableness of 
     concessionaires' charges to the public in comparison to 
     equivalent charges at private facilities in close proximity 
     to the park, unless otherwise provided in the contract.
       Sec. 512. Concessioner Performance Evaluation.--This 
     section requires the Secretary to review the performance of 
     concessioners on a regular basis, and authorizes termination 
     of a concessioner whose performance is unsatisfactory.
       Sec. 513. Recordkeeping Requirements.--This section 
     requires concessioners to keep records mandated by the 
     Secretary.
       Sec. 514. Exemption from Certain Lease Requirements.--This 
     section exempts concession contracts from certain federal 
     lease requirements.
       Sec. 515. No Effect on ANILCA Provisions.--This section 
     provides that this title shall not amend the Alaska National 
     Interest Lands Conservation Act.
       Sec. 516. Implementation.--This section requires periodic 
     audits and reports by the Secretary and Interior Inspector 
     General.
       Sec. 517. Authorization of Appropriations.--This section 
     authorizes the appropriation of such sums as are necessary to 
     carry out the title.
     

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