[Congressional Record Volume 148, Number 153 (Monday, December 16, 2002)]
[Extensions of Remarks]
[Pages E2149-E2150]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       COST ESTIMATE FOR H.R. 635

                                 ______
                                 

                          HON. JAMES V. HANSEN

                                of utah

                    in the house of representatives

                       Monday, December 16, 2002

  Mr. HANSEN. Mr. Speaker, I request that the attached cost estimate 
for H.R. 635 be submitted for the Record under General Leave.

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                 Washington, DC, October 10, 2002.
     Hon. James V. Hansen,
     Chairman, Committee on Resources, House of Representatives, 
         Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office has 
     prepared the enclosed cost estimate for H.R. 635, the 
     Homestead Steel Works National Historic Site Act.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contact is Deborah 
     Reis.
           Sincerely,
                                                 Barry B. Anderson
                                   (For Dan L. Crippen, Director).
       Enclosure.
     H.R. 635--Homestead Steel Works National Historic Site Act
       Summary: H.R. 635 would establish the Homestead Steel Works 
     National Historic Site (NHS) in Pennsylvania as a unit of the 
     National Park System. The federal budgetary impact of 
     enacting this legislation is uncertain and would depend on 
     unknown factors such as the condition of property that may be 
     acquired by the National Park Service (NPS), the need for 
     mitigating environmental or other safety hazards, and the 
     extent of nonfederal participation in the project. Depending 
     on the level of restoration, stabilization, and development 
     for visitor use that is undertaken, CBO estimates that 
     initial costs to establish and operate the new NHS would be 
     between $60 million and $120 million over the five years 
     following enactment. Some of these costs could be borne by 
     state, local, or nonprofit entities, but the legislation 
     would not require cost-sharing. All federal spending to 
     implement the project, including operating expenses of

[[Page E2150]]

     about $1 million annually, would be subject to appropriation. 
     Enacting the legislation would not affect direct spending or 
     revenues.
       The bill contains no intergovernmental or private-sector 
     mandates as defined in the Unfunded Mandates Reform Act 
     (UMRA) and would impose no costs on state, local, or tribal 
     governments.
       Major provisions: The Homestead Steel Works National 
     Historic Site would consist of three or more separate 
     properties in southwestern Pennsylvania--the Battle of 
     Homestead site (between 3 acres and 5 acres and related 
     structures), the 35-acre Carrie Furnace complex (including 
     blast furnaces, an ore yard, and related buildings), the hot 
     metal bridge over the Monongahela River, and possibly up to 
     10 acres of nearby land that may be acquired by the NPS for 
     visitor and administrative facilities. H.R. 635 would 
     authorize the NPS to accept donation of all of these sites as 
     well as any related personal property. In addition to 
     managing the NHS, the NPS could provide technical and 
     financial assistance to local parties for their preservation 
     and management efforts. The agency also would prepare a 
     general management plan for the site within three years of 
     the bill's enactment.
       Estimated cost to the Federal Government: CBO estimates 
     that one-time planning, restoration, and development costs to 
     establish the Homestead Steel NHS would be between $50 
     million to $115 million over the first five years following 
     the bill's enactment. Of this amount, an estimated $6 million 
     to $14 million would be used to build administrative and 
     visitor facilities and develop an interpretive program. 
     Planning (including the preparation of a general management 
     plan, historic structures report, environmental assessments, 
     and other requisite studies) would cost $1 million over the 
     first three years. The balance of one-time costs would be 
     used to restore historic structures, stabilize or 
     rehabilitate industrial property such as blast furnaces and 
     the hot metal bridge, and mitigate hazardous conditions and 
     environmental contamination.
       We estimate that managing the new NHS would increase NPS 
     operating costs by a total of $5 million through 2007. After 
     2007, estimated ongoing costs would be about $1.5 million a 
     year. Annual costs would include routine NPS operating 
     expenses, services to secure and maintain special property 
     such as the bridge and blast furnaces, and technical 
     assistance to nonfederal participant organizations.
       This estimate is based on information provided by the 
     nonprofit Steel Industry Heritage Corporation, the NPS, and 
     other federal, state, and local agencies. For this estimate, 
     CBO assumes that any property acquired for the proposed NHS 
     would be donated to the NPS at no significant cost to the 
     federal government. CBO further assumes that any significant 
     contamination or other safety hazards located on donated 
     property would be corrected before or soon after federal 
     acquisition. (If the agency acquired contaminated or unsafe 
     property, the federal government could be liable for future 
     third-party damages, but CBO has no basis for estimating the 
     likelihood or amount of such costs.)
       Intergovernmental and private-sector impact: The bill 
     contains no intergovernmental or private-sector mandates as 
     defined in UMRA and would impose no costs on state, local, or 
     tribal governments.
       Estimate prepared by: Federal costs: Deborah Reis; impact 
     on state, local, and tribal governments: Marjorie Miller; 
     impact on the private sector: Lauren Marks.
       Estimate approved by: Peter H. Fontaine, Deputy Assistant 
     Director for Budget Analysis.

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