[Congressional Record Volume 145, Number 77 (Wednesday, May 26, 1999)]
[Senate]
[Pages S6055-S6057]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DOMENICI:
  S. 1129. A bill to facilitate the acquisition of inholdings in 
Federal land management units and the disposal of surplus public land, 
and for other purposes; to the Committee on Energy and Natural 
Resources.


               federal land transaction facilitation act

  Mr. DOMENICI. Mr. President, today I introduce the Federal Land 
Transaction Facilitation Act, which addresses longstanding problems 
encountered by Federal land managers first, in disposing of surplus 
federal property, and secondly, in acquiring private inholdings within 
federally designated areas. This legislation builds on existing laws 
and provides resources dedicated to the consolidation of federal agency 
land holdings.
  I first introduced this bill prior to the end of the 105th Congress, 
as Title II to the Valles Caldera Preservation Act. This portion of 
that legislation was independent of the proposed acquisition of land in 
New Mexico, and perhaps more important. Again this year, Congress will 
commit large sums of federal taxpayer dollars to purchase new property. 
Before we do, however, it seems prudent to provide a framework for the 
orderly disposal of unneeded federal property that also commits 
resources to meet our current obligations to those who hold land 
surrounded by federal property.
  Currently, one-third of the land area in New Mexico is owned by the 
Federal government. On average, across the eleven Western States, the 
Federal government owns approximately one half of the land. I agree 
that this public land is an important natural resource that requires 
our most thoughtful consideration in the way it is managed and used by 
the public.
  To best conserve our existing national treasures for future use and 
enjoyment, we must devise, with the concurrence of other members of 
Congress and the President, a definite plan and timetable to dispose of 
surplus land through sale or exchange into private, or State and local 
government ownership.
  The Federal Land Transaction Facilitation Act provides for the 
orderly disposition of unneeded Federal property on a state by state 
basis. It also addresses the problem of what are known as 
``inholdings'' within federally managed areas. These interrelated 
problems give rise to an interrelated solution proposed in this 
legislation.
  There are currently more than 45 million acres of privately owned 
land trapped within the boundaries of Federal land management units, 
including national parks, national forests, national monuments, 
national wildlife refuges, and wilderness areas. In many cases, the 
location of these tracts, referred to as inholdings, makes the exercise 
of private property rights difficult for the land owner. In addition, 
management of the public land is made more cumbersome for the Federal 
managers.
  There are also cases where inholders have been waiting generations 
for the federal government to set aside funding and prioritize the 
acquisition of their property. With rapidly growing public demand for 
the use of public land, it is increasingly difficult for federal 
managers to address problems created by inholdings in many areas.
  This legislation directs the Department of the Interior to identify 
inholdings existing within Federal land management units that 
landowners that have indicated a desire to sell to the Federal 
government. Inholdings will only be considered for acquisition by the 
Secretary of Interior if, after public notice, landowners indicate 
their willingness to sell. The Secretary will then establish a priority 
for their acquisition considering, among other factors, those which 
have existed as inholdings for the longest time.
  Additionally, this legislation authorizes the use of the proceeds 
generated from sale of land no longer needed by the Bureau of Land 
Management (BLM) to purchase these inholdings from willing sellers. 
This will enhance the ability of the Federal land management agencies 
to work cooperatively with private land owners, and with State and 
local governments, to consolidate the ownership of public and private 
land in a manner that would allow for better overall resource 
management.
  There is an abundance of public domain land that the BLM has 
determined it no longer needs to fulfil its mission. Under the Federal 
Land Policy and Management Act of 1976 (FLPMA), the BLM has identified 
an estimated four to six million acres of public domain land for 
disposal, with public input and consultation with State and local 
governments as required by law.
  Let me state this very clearly--the BLM already has authority under 
an existing law, FLPMA, to exchange or sell land out of Federal 
ownership. Through its public process for land use planning, when the 
agency has determined that certain land would be more useful to the 
public under private or local governmental control, it is already 
authorized to dispose of this land, either by sale or exchange. This 
legislation maintains every aspect of existing law. It also provides an 
orderly process, and sufficient resources, for the BLM to exercise it.
  The sale or exchange of land which I have often referred to as 
``surplus,'' would be beneficial to local communities, adjoining land 
owners, and BLM land mangers, alike. First, it would allow for the 
reconfiguration of land ownership patterns to better facilitate 
resource management. Second, it would contribute to administrative 
efficiency within federal land management units, by allowing for better 
allocation of fiscal and human resources within the agency. Finally, in 
certain locations, the sale of public land which has been identified 
for disposal is the best way for the public to realize a fair value for 
this land.
  The problem is that an orderly process for the efficient disposition 
of lands identified for disposal does not currently exist. This 
legislation corrects that problem by directing the BLM to fulfil all 
legal requirements for the transfer of land out of Federal ownership, 
and providing a dedicated source of funding generated from the sale of 
this land to continue this process.
  I want to make it clear that this program will in no way detract from 
other programs with similar purposes. The bill clearly states that 
proceeds generated from the disposal of public land, and dedicated to 
the acquisition of inholdings, will supplement, and not replace, funds 
appropriated for that purpose through the Land and Water Conservation 
Fund. In addition, the bill states that the BLM should rely on non-
Federal entities to conduct appraisals and other research required for 
the sale or exchange of this land, allowing for the least disruption of 
existing land and resource management programs.
  This bill has been a long time in the making. For over a year, now, I 
have been working with and talking to knowledgeable people, both inside 
and outside of the current administration, to develop many of the ideas 
embodied in this bill. Prior to adjournment of the 105th Congress, my 
staff and I worked closely with the administration on this legislation. 
I have since received additional comments from the

[[Page S6056]]

Interior Department, and have included many of their suggestions into 
this bill.
  I feel comfortable in stating that by working together, we have 
reached agreement in principle on the best way to proceed with these 
very important issues involving the management of public land 
resources, namely, the disposition of surplus public land in 
combination with a program to address problems associated with 
inholdings within our Federal land management units.
  I look forward to hearings on this matter, and anticipate that most 
of my fellow Senators will agree that Federal Land Transaction 
Facilitation Act logically addresses this management issue. I believe 
that in the end, we will be able to stand together and tell the 
American people that we truly have accomplished a great and innovative 
thing with this legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1129

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Land Transaction 
     Facilitation Act''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the Bureau of Land Management has authority under the 
     Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1701 et seq.) to sell land identified for disposal under its 
     land use planning;
       (2) the Bureau of Land Management has authority under that 
     Act to exchange Federal land for non-Federal land if the 
     exchange would be in the public interest;
       (3) through land use planning under that Act, the Bureau of 
     Land Management has identified certain tracts of public land 
     for disposal;
       (4) the land management agencies of the Department of the 
     Interior have authority under existing law to acquire land 
     consistent with land use plans and the mission of each 
     agency;
       (5) the sale or exchange of land identified for disposal 
     and the acquisition of certain non-Federal land from willing 
     landowners would--
       (A) allow for the reconfiguration of land ownership 
     patterns to better facilitate resource management;
       (B) contribute to administrative efficiency within Federal 
     land management units; and
       (C) allow for increased effectiveness of the allocation of 
     fiscal and human resources within the Federal land management 
     agencies;
       (6) a more expeditious process for disposal and acquisition 
     of land, established to facilitate a more effective 
     configuration of land ownership patterns, would benefit the 
     public interest;
       (7) many private individuals own land within the boundaries 
     of Federal land management units and desire to sell the land 
     to the Federal Government;
       (8) such land lies within national parks, national 
     monuments, national wildlife refuges, and other areas 
     designated for special management;
       (9) Federal land management agencies are facing increased 
     workloads from rapidly growing public demand for the use of 
     public land, making it difficult for Federal managers to 
     address problems created by the existence of inholdings in 
     many areas;
       (10) in many cases, inholders and the Federal Government 
     would mutually benefit from Federal acquisition of the land 
     on a priority basis;
       (11) proceeds generated from the disposal of public land 
     may be properly dedicated to the acquisition of inholdings 
     and other land that will improve the resource management 
     ability of the Bureau of Land Management and adjoining 
     landowners;
       (12) using proceeds generated from the disposal of public 
     land to purchase inholdings and other such land from willing 
     sellers would enhance the ability of the Federal land 
     management agencies to--
       (A) work cooperatively with private landowners and State 
     and local governments; and
       (B) promote consolidation of the ownership of public and 
     private land in a manner that would allow for better overall 
     resource management;
       (13) in certain locations, the sale of public land that has 
     been identified for disposal is the best way for the public 
     to receive fair market value for the land; and
       (14) to allow for the least disruption of existing land and 
     resource management programs, the Bureau of Land Management 
     may use non-Federal entities to prepare appraisal documents 
     for agency review and approval consistent with applicable 
     provisions of the Uniform Standards for Federal Land 
     Acquisition.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Exceptional resource.--The term ``exceptional 
     resource'' means a resource of scientific, historic, 
     cultural, or recreational value that has been documented by a 
     Federal, State, or local governmental authority, and for 
     which extraordinary conservation and protection is required 
     to maintain the resource for the benefit of the public.
       (2) Federally designated area.--The term ``Federally 
     designated area'' means land administered by the Secretary in 
     Alaska and the eleven contiguous Western States (as defined 
     in section 103 of the Federal Land Policy and Management Act 
     of 1976 (43 U.S.C. 1702)) that on the date of enactment of 
     this Act was within the boundary of--
       (A) a national monument, area of critical environmental 
     concern, national conservation area, national riparian 
     conservation area, national recreation area, national scenic 
     area, research natural area, national outstanding natural 
     area, or a national natural landmark managed by the Bureau of 
     Land Management;
       (B) a unit of the National Park System;
       (C) a unit of the National Wildlife Refuge System; or
       (D) a wilderness area designated under the Wilderness Act 
     (16 U.S.C. 1131 et seq.), the Wild and Scenic Rivers Act (16 
     U.S.C. 1271 et seq.), or the National Trails System Act (16 
     U.S.C. 1241 et seq.).
       (3) Inholding.--The term ``inholding'' means any right, 
     title, or interest, held by a non-Federal entity, in or to a 
     tract of land that lies within the boundary of a federally 
     designated area.
       (4) Public land.--The term ``public land'' means public 
     lands (as defined in section 103 of the Federal Land Policy 
     and Management Act of 1976 (43 U.S.C. 1702)).
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 4. IDENTIFICATION OF INHOLDINGS.

       (a) In General.--The Secretary shall establish a procedure 
     to--
       (1) identify, by State, inholdings within federally 
     designated areas for which the landowner has indicated a 
     desire to sell the land or an interest in land to the Federal 
     Government; and
       (2) establish the date on which the land or interest in 
     land identified became an inholding.
       (b) Notice of Policy.--The Secretary shall provide, in the 
     Federal Register and through such other means as the 
     Secretary may determine to be appropriate, periodic notice to 
     the public of the policy under subsection (a), including any 
     information required by the Secretary to consider an 
     inholding for acquisition under section 6.
       (c) Identification.--An inholding--
       (1) shall be considered for identification under this 
     section only if the Secretary receives notification of a 
     desire to sell from the landowner in response to public 
     notice given under subsection (b); and
       (2) shall be deemed to have been established as of the 
     later of--
       (A) the earlier of--
       (i) the date on which the land was withdrawn from the 
     public domain; or
       (ii) the date on which the land was established or 
     designated for special management; or
       (B) the date on which the inholding was acquired by the 
     current owner.
       (d) Application to the Secretary of Agriculture.--If funds 
     become available under section 6(c)(2)(E)--
       (1) this section shall apply to the Secretary of 
     Agriculture; and
       (2) private land within an area described in that section 
     shall be deemed to be an inholding for the purposes of this 
     Act.
       (e) No Obligation To Convey or Acquire.--The identification 
     of an inholding under this section creates no obligation on 
     the part of a landowner to convey the inholding or any 
     obligation on the part of the United States to acquire the 
     inholding.

     SEC. 5. DISPOSAL OF PUBLIC LAND.

       (a) In General.--The Secretary shall establish a program, 
     using funds made available under section 6, to complete 
     appraisals and satisfy other legal requirements for the sale 
     or exchange of public land identified for disposal under 
     approved land use plans (as in effect on the date of 
     enactment of this Act) under section 202 of the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1712).
       (b) Sale of Public Land.--
       (1) In general.--The sale of public land so identified 
     shall be conducted in accordance with sections 203 and 209 of 
     the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1713, 1719).
       (2) Exceptions to competitive bidding requirements.--The 
     exceptions to competitive bidding requirements under section 
     203(f) of the Federal Land Policy and Management Act of 1976 
     (43 U.S.C. 1713(f)) shall apply to this section in cases in 
     which the Secretary determines it to be necessary.
       (c) Report in Public Land Statistics.--The Secretary shall 
     provide in the annual publication of Public Land Statistics, 
     a report of activities under this section.
       (d) Termination of Authority.--The authority provided under 
     this section shall terminate 10 years after the date of 
     enactment of this Act.

     SEC. 6. FEDERAL LAND DISPOSAL ACCOUNT.

       (a) Deposit of Proceeds.--Notwithstanding any other law 
     (except a law that specifically provides for a proportion of 
     the proceeds to be distributed to any trust funds of any 
     States), the gross proceeds of the sale or exchange of public 
     land under this Act shall be deposited in a separate account 
     in the Treasury of the United States to be known as the 
     ``Federal Land Disposal Account''.

[[Page S6057]]

       (b) Availability.--Amounts in the Federal Land Disposal 
     Account shall be available to the Secretary, without further 
     Act of appropriation, to carry out this Act.
       (c) Use of the Federal Land Disposal Account.--
       (1) In general.--Funds in the Federal Land Disposal Account 
     shall be expended in accordance with this subsection.
       (2) Fund allocation.--
       (A) Purchase of land.--Except as authorized under 
     subparagraph (C), funds shall be used to purchase--
       (i) inholdings; and
       (ii) land adjacent to federally designated areas that 
     contains exceptional resources.
       (B) Inholdings.--Not less than 80 percent of the funds 
     allocated for the purchase of land within each State shall be 
     used to acquire--
       (i) inholdings identified under section 4; and
       (ii) National Forest System land as authorized under 
     subparagraph (E).
       (C) Administrative and other expenses.--An amount not to 
     exceed 20 percent of the funds in the Federal Land Disposal 
     Account shall be used for administrative and other expenses 
     necessary to carry out the land disposal program under 
     section 5.
       (D) Same state purchases.--Of the amounts not used under 
     subparagraph (C), not less than 80 percent shall be expended 
     within the State in which the funds were generated. Any 
     remaining funds may be expended in any other State.
       (E) Purchase of national forest system land.--Beginning 5 
     years after the date of enactment of this Act, if, for any 
     fiscal year, the Secretary determines that funds allocated 
     for the acquisition of inholdings under this section exceed 
     the availability of inholdings within a State, the Secretary 
     may use the excess funds to purchase land, on behalf of the 
     Secretary of Agriculture, within the boundaries of a national 
     recreation area, national scenic area, national monument, 
     national volcanic area, or any other area designated for 
     special management by an Act of Congress within the National 
     Forest System.
       (3) Priority.--The Secretary may develop and use criteria 
     for priority of acquisition that are based on--
       (A) the date on which land or interest in land became an 
     inholding;
       (B) the existence of exceptional resources on the land; and
       (C) management efficiency.
       (4) Basis of sale.--Any acquisition of land under this 
     section shall be--
       (A) from a willing seller;
       (B) contingent on the conveyance of title acceptable to the 
     Secretary (and the Secretary of Agriculture, in the case of 
     an acquisition of National Forest System land) using title 
     standards of the Attorney General; and
       (C) at not less than fair market value consistent with 
     applicable provisions of the Uniform Appraisal Standards for 
     Federal Land Acquisitions.
       (d) Contaminated Sites and Sites Difficult and Uneconomic 
     to Manage.--Funds in the Federal Land Disposal Account shall 
     not be used to purchase land or an interest in land that, as 
     determined by the Secretary--
       (1) contains a hazardous substances or is otherwise 
     contaminated; or
       (2) because of the location or other characteristics of the 
     land, would be difficult or uneconomic to manage as Federal 
     land.
       (e) Investment.--Amounts in the Federal Land Disposal 
     Account shall earn interest at a rate determined by the 
     Secretary of the Treasury based on the current average market 
     yield on outstanding marketable obligations of the United 
     States of comparable maturities.
       (f) Land and Water Conservation Fund Act.--Funds made 
     available under this section shall be supplemental to any 
     funds appropriated under the Land and Water Conservation Fund 
     Act (16 U.S.C. 460l-4 et seq.).
       (g) Termination.--On termination of activities under 
     section 5--
       (1) the Federal Land Disposal Account shall be terminated; 
     and
       (2) any remaining balance in the account shall become 
     available for appropriation under section 3 of the Land and 
     Water Conservation Fund Act (16 U.S.C.460l-6).

     SEC. 7. SPECIAL PROVISIONS.

       (a) In General.--Nothing in this Act provides an exemption 
     from any limitation on the acquisition of land or interest in 
     land under any Federal Law in effect on the date of enactment 
     of this Act.
       (b) Other Law.--This Act shall not apply to land eligible 
     for sale under--
       (1) Public Law 96-568 (commonly known as the ``Santini-
     Burton Act'') (94 Stat. 3381); or
       (2) the Southern Nevada Public Land Management Act of 1998 
     (112 Stat. 2343).
       (c) Exchanges.--Nothing in this Act precludes, preempts, or 
     limits the authority to exchange land under--
       (1) the Federal Land Policy and Management Act of 1976 (43 
     U.S.C. 1701 et seq.); or
       (2) the Federal Land Exchange Facilitation Act of 1988 (102 
     Stat. 1086) or the amendments made by that Act.
       (d) No New Right or Benefit.--Nothing in this Act creates a 
     right or benefit, substantive or procedural, enforceable at 
     law or in equity by a party against the United States, its 
     agencies, its officers, or any other person.
                                 ______