[Congressional Record Volume 142, Number 53 (Tuesday, April 23, 1996)]
[Senate]
[Pages S3954-S3955]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN:
  S. 1695. A bill to authorize the Secretary of the Interior to assess 
up to $2 per person visiting the Grand Canyon or other national parks 
to secure bonds for capital improvements to the park, and for other 
purposes; to the Committee on Energy and Natural Resources.


              the national parks capital improvements act

 Mr. McCAIN. Mr. President, I introduce legislation to make 
desperately needed improvements within America's national parks.
  The National Parks Capital Improvements Act would allow private 
fundraising organizations, under agreement with the Secretary of the 
Interior, to issue taxable capital development bonds to finance park 
improvement projects. The bonds would be secured by an entrance fee 
surcharge of up to $2 per visitor at participating parks.
  Our National Park System has enormous capital needs--by last estimate 
over $3 billion of high priority projects such as improved 
transportation systems, trail repairs, visitor facilities, historic 
preservation, and the list goes on and on. The unfortunate reality is 
that even under the rosiest budget scenarios our growing park needs far 
outstrip the resources available.
  A good example of this funding gap is at Grand Canyon National Park. 
The park's newly approved park management plan calls for over $300 
million in capital improvements, including a desperately needed 
transportation system to reduce congestion. Compare that to the $12 
million the Grand Canyon received last year for operating costs. The 
gap is as wide as the Grand Canyon itself. Clearly, we must find new 
means of financing park needs.
  Revenue bonding is an integral part of the solution. Based on current 
visitation rates, a $2 surcharge at the Grand Canyon would enable us to 
raise $100 million dollars from a bond issue amortized over 20 years. 
That is significant amount of money with which we could accomplish a 
lot of critical work.
  I want to point out that the Grand Canyon would not be the only park 
eligible for the program. Any park unit with capital needs in excess of 
$5 million is eligible to participate. Among eligible park the 
Secretary will determine which shall take part in the program.
  I also want to stress that only projects approved as part of park's 
General Management Plan can be funded through bond revenue. This 
proviso eliminates any concern that the revenue could be used for 
projects of questionable value to the park.

[[Page S3955]]

  Finally, the bill requires that all professional standards apply and 
that the issues are subject to the same laws, rules and regulatory 
enforcement procedures as any other bond issue.
  In addition, only organizations under agreement with the Secretary 
will be authorized to administer the bonding, so the Secretary can 
establish any rules or policies he deems necessary and appropriate.
  Under, no circumstances, however would investors be able to attach 
liens against Federal property in the very unlikely event of default. 
The bonds will be secured only by the surcharge revenues.
  Will the bond markets support park improvement issues, guaranteed by 
an entrance surcharge? The answer is yes, emphatically. Americans are 
eager to invest in our Nation's natural heritage, and with park 
visitation growing stronger, the risks would appear minimal.
  Are visitors willing to pay a little more at the entrance gate if the 
money is used for park improvement? Again, yes. Time and time again 
visitors have expressed their support provided the revenue is used 
where collected and not diverted for some other purpose devised by 
Congress.
  Finally, I want to point out that the bill will not cost the Treasury 
any money? On the contrary it will result in a net increase in Federal 
revenue. First, the bonds will be fully taxable, and, second, making 
disparately needed improvements sooner rather than later will reduce 
project costs.
  America has been blessed with a rich natural heritage. The National 
Park Organic Act enjoins us to protect our precious natural resources 
for future generations and to provide for their enjoyment by the 
American people. The National Parks Capital Improvements Act must pass 
if we are to successfully fulfill the enduring responsibilities of 
stewardship with which we have been vested.
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