[Congressional Record Volume 151, Number 5 (Tuesday, January 25, 2005)]
[Senate]
[Pages S487-S491]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN (for himself and Mr. Kyl):
  S. 161. A bill to provide for a land exchange in the State of Arizona 
between the Secretary of Agriculture and Yavapai Ranch Limited 
Partnership; to the Committee on Energy and Natural Resources.
  Mr. McCAIN. Mr. President, I am pleased to join with Senator Kyl in 
introducing the Northern Arizona Forest Lands Exchange and Verde River 
Basin Partnership Act of 2005. The Senate passed by unanimous consent a 
nearly identical measure late last year. Unfortunately, the House did 
not have the time to pass the bill before the 108th Congress adjourned. 
It is my hope that this compromise bill will pass quickly in both 
Houses and become law in the near future.
  This legislation is the product of many years of negotiation and 
compromise. It provides a sound framework for a fair and equal value 
exchange of 50,000 acres of private and public land in Northern 
Arizona. The bill also addresses water issues associated with the 
exchange of lands located within the Verde River Basin watershed by 
limiting water usage on certain exchanged lands and supporting the 
development of a collaborative science-based water resource planning 
and management entity for the Verde River Basin watershed.
  After countless hours of deliberation and discussion by all parties, 
I believe that the compromise reached on the bill is both balanced and 
foresighted in addressing the various issues raised by the exchange. I 
want to thank Senator Kyl and his staff, as well as Senators Domenici 
and Bingaman, and their staffs on the Senate Energy and Natural 
Resources Committee, for their tireless efforts in reaching this 
agreement at the end of the last session. I also want to recognize the 
work of Congressmen Renzi and Hayworth who have championed this 
legislation in the House of Representatives. Representative Renzi plans 
to introduce a companion bill in the House this week.
  The Arizona delegation is strongly supportive of the legislation 
because it will offer significant benefits for all parties. Benefits 
will accrue to the U.S. Forest Service and the public with the 
consolidation of checkerboard lands and the protection and enhanced 
management of extensive forest and grasslands. The communities of 
Flagstaff, Williams, and Camp Verde will also benefit in terms of 
economic development opportunities, water supply, and other important 
purposes.
  While facilitating the exchange of public and private lands is a very 
important objective of this legislation, and indeed, was the original 
purpose when we began working on it several years ago, I now consider 
the provisions concerning water management even more crucial. Since 
introducing the original legislation in April 2003, I have heard from 
hundreds of Arizonans and learned first-hand of the significant water 
issues raised by the transfer of Federal land into private ownership. 
We have modified the bill to take into account many of the concerns 
raised during meetings held in Northern Arizona by limiting water usage 
on exchanged lands and removing certain lands entirely from the 
exchange.
  There is growing recognition throughout Arizona of the need to face 
the crucial challenge of wise management of limited water supplies, 
particularly with the extended drought coupled with rapid population 
growth. Earlier this month, I had the opportunity to participate in an 
Arizona Water Conservation Forum which was attended by educators, 
business leaders, and State and local officials. I think the majority 
of us came away more aware of the management measures needed to provide 
for a more secure water future.
  This bill promotes an important opportunity to encourage sound water 
management in Northern Arizona by supporting the creation of a 
collaborative, science-based decision-making body to advance essential 
planning and management at the State and local level. To be successful, 
this effort will require the involvement of all the stakeholders with 
water supply responsibilities and interests and a solid foundation of 
knowledge about available resources and existing demands. We are 
fortunate to have an existing model of collaborative science-based 
water resource planning and management with the Upper San Pedro 
Partnership in

[[Page S488]]

the Sierra Vista subwatershed of Arizona. In my view, the establishment 
of a similar, cooperative body in the Verde Basin will be a vital step 
in assuring the wise use of our limited water resources.
  I look forward to the expeditious passage of this legislation in this 
Congress and again thank all of the parties involved with this effort 
during the past several years. 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. 161

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Northern 
     Arizona Land Exchange and Verde River Basin Partnership Act 
     of 2005''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                TITLE I--NORTHERN ARIZONA LAND EXCHANGE

Sec. 101. Definitions.
Sec. 102. Land exchange.
Sec. 103. Description of non-Federal land.
Sec. 104. Description of Federal land.
Sec. 105. Status and management of land after exchange.
Sec. 106. Miscellaneous provisions.
Sec. 107. Conveyance of additional land.

                TITLE II--VERDE RIVER BASIN PARTNERSHIP

Sec. 201. Purpose.
Sec. 202. Definitions.
Sec. 203. Verde River Basin Partnership.
Sec. 204. Verde River Basin studies.
Sec. 205. Verde River Basin Partnership final report.
Sec. 206. Memorandum of understanding.
Sec. 207. Effect.

                TITLE I--NORTHERN ARIZONA LAND EXCHANGE

     SEC. 101. DEFINITIONS.

       In this title:
       (1) Camp.--The term ``camp'' means Camp Pearlstein, 
     Friendly Pines, Patterdale Pines, Pine Summit, Sky Y, and 
     Young Life Lost Canyon camps in the State of Arizona.
       (2) Cities.--The term ``cities'' means the cities of 
     Flagstaff, Williams, and Camp Verde, Arizona.
       (3) Federal land.--The term ``Federal land'' means the land 
     described in section 104.
       (4) Non-federal land.--The term ``non-Federal land'' means 
     the land described in section 103.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (6) Yavapai ranch.--The term ``Yavapai Ranch'' means the 
     Yavapai Ranch Limited Partnership, an Arizona Limited 
     Partnership, and the Northern Yavapai, L.L.C., an Arizona 
     Limited Liability Company.

     SEC. 102. LAND EXCHANGE.

       (a) In General.--(1) Upon the conveyance by Yavapai Ranch 
     of title to the non-Federal land identified in section 103, 
     the Secretary shall simultaneously convey to Yavapai Ranch 
     title to the Federal land identified in section 104.
       (2) Title to the lands to be exchanged shall be in a form 
     acceptable to the Secretary and Yavapai Ranch.
       (3) The Federal and non-Federal lands to be exchanged under 
     this title may be modified prior to the exchange as provided 
     in this title.
       (4)(A) By mutual agreement, the Secretary and Yavapai Ranch 
     may make minor and technical corrections to the maps and 
     legal descriptions of the lands and interests therein 
     exchanged or retained under this title, including changes, if 
     necessary to conform to surveys approved by the Bureau of 
     Land Management.
       (B) In the case of any discrepancy between a map and legal 
     description, the map shall prevail unless the Secretary and 
     Yavapai Ranch agree otherwise.
       (b) Exchange Process.--(1) Except as otherwise provided in 
     this title, the land exchange under subsection (a) shall be 
     undertaken in accordance with section 206 of the Federal Land 
     Policy and Management Act (43 U.S.C. 1716).
       (2) Before completing the land exchange under this title, 
     the Secretary shall perform any necessary land surveys and 
     pre-exchange inventories, clearances, reviews, and approvals, 
     including those relating to hazardous materials, threatened 
     and endangered species, cultural and historic resources, and 
     wetlands and flood plains.
       (c) Equal Value Exchange.--(1) The value of the Federal 
     land and the non-Federal land shall be equal, or equalized by 
     the Secretary by adjusting the acreage of the Federal land in 
     accordance with paragraph (2).
       (2) If the final appraised value of the Federal land 
     exceeds the final appraised value of the non-Federal land, 
     prior to making other adjustments, the Federal lands shall be 
     adjusted by deleting all or part of the parcels or portions 
     of the parcels in the following order:
       (A) A portion of the Camp Verde parcel described in section 
     104(a)(4), comprising approximately 316 acres, located in the 
     Prescott National Forest, and more particularly described as 
     lots 1, 5, and 6 of section 26, the NE\1/4\NE\1/4\ portion of 
     section 26 and the N\1/2\N\1/2\ portion of section 27, 
     Township 14 North, Range 4 East, Gila and Salt River Base and 
     Meridian, Yavapai County, Arizona.
       (B) A portion of the Camp Verde parcel described in section 
     104(a)(4), comprising approximately 314 acres, located in the 
     Prescott National Forest, and more particularly described as 
     lots 2, 7, 8, and 9 of section 26, the SE\1/4\NE\1/4\ portion 
     of section 26, and the S\1/2\N\1/2\ of section 27, Township 
     14 North, Range 4 East, Gila and Salt River Base and 
     Meridian, Yavapai County, Arizona.
       (C) Beginning at the south boundary of section 31, Township 
     20 North, Range 5 West, Gila and Salt River Base and 
     Meridian, Yavapai County, Arizona, and sections 33 and 35, 
     Township 20 North, Range 6 West, Gila and Salt River Base and 
     Meridian, Yavapai County, Arizona, by adding to the non-
     Federal land to be conveyed to the United States in \1/8\-
     section increments (E-W 64th line) while deleting from the 
     conveyance to Yavapai Ranch Federal land in the same 
     incremental portions of section 32, Township 20 North, Range 
     5 West, Gila and Salt River Base and Meridian, Yavapai 
     County, Arizona, and sections 32, 34, and 36 in Township 20 
     North, Range 6 West, Gila and Salt River Base and Meridian, 
     Yavapai County, Arizona, to establish a linear and continuous 
     boundary that runs east-to-west across the sections.
       (D) Any other parcels, or portions thereof, agreed to by 
     the Secretary and Yavapai Ranch.
       (3) If any parcel of Federal land or non-Federal land is 
     not conveyed because of any reason, that parcel of land, or 
     portion thereof, shall be excluded from the exchange and the 
     remaining lands shall be adjusted as provided in this 
     subsection.
       (4) If the value of the Federal land exceeds the value of 
     the non-Federal land by more than $50,000, the Secretary and 
     Yavapai Ranch shall, by mutual agreement, delete additional 
     Federal land from the exchange until the value of the Federal 
     land and non-Federal land is, to the maximum extent 
     practicable, equal.
       (d) Appraisals.--(1) The value of the Federal land and non-
     Federal land shall be determined by appraisals prepared in 
     accordance with the Uniform Appraisal Standards for Federal 
     Land Acquisitions and the Uniform Standards of Professional 
     Appraisal Practice.
       (2)(A) After the Secretary has reviewed and approved the 
     final appraised values of the Federal land and non-Federal 
     land to be exchanged, the Secretary shall not be required to 
     reappraise or update the final appraised values before the 
     completion of the land exchange.
       (B) This paragraph shall apply during the three-year period 
     following the approval by the Secretary of the final 
     appraised values of the Federal land and non-Federal land 
     unless the Secretary and Yavapai Ranch have entered into an 
     agreement to implement the exchange.
       (3) During the appraisal process, the appraiser shall 
     determine the value of each parcel of Federal land and non-
     Federal land (including the contributory value of each 
     individual section of the intermingled Federal and non-
     Federal land of the property described in sections 103(a) and 
     104(a)(1)) as an assembled transaction.
       (4)(A) To ensure the timely and full disclosure to the 
     public of the final appraised values of the Federal land and 
     non-Federal land, the Secretary shall provide public notice 
     of any appraisals approved by the Secretary and copies of 
     such appraisals shall be available for public inspection in 
     appropriate offices of the Prescott, Coconino, and Kaibab 
     National Forests.
       (B) The Secretary shall also provide copies of any approved 
     appraisals to the cities and the owners of the camps 
     described in section 101(1).
       (e) Contracting.--(1) If the Secretary lacks adequate staff 
     or resources to complete the exchange by the date specified 
     in section 106(c), Yavapai Ranch, subject to the agreement of 
     the Secretary, may contract with independent third-party 
     contractors to carry out any work necessary to complete the 
     exchange by that date.
       (2) If, in accordance with this subsection, Yavapai Ranch 
     contracts with an independent third-party contractor to carry 
     out any work that would otherwise be performed by the 
     Secretary, the Secretary shall reimburse Yavapai Ranch for 
     the costs for the third-party contractors.
       (f) Easements.--(1) The exchange of non-Federal and Federal 
     land under this title shall be subject to any easements, 
     rights-of-way, utility lines, and any other valid 
     encumbrances in existence on the date of enactment of this 
     Act, including acquired easements for water pipelines as 
     generally depicted on the map entitled ``Yavapai Ranch Land 
     Exchange, YRLP Acquired Easements for Water Lines'' dated 
     August 2004, and any other reservations that may be agreed to 
     by the Secretary and Yavapai Ranch.
       (2) Upon completion of the land exchange under this title, 
     the Secretary and Yavapai Ranch shall grant each other at no 
     charge reciprocal easements for access and utilities across, 
     over, and through--
       (A) the routes depicted on the map entitled ``Yavapai Ranch 
     Land Exchange, Road and Trail Easements, Yavapai Ranch Area'' 
     dated August 2004; and
       (B) any relocated routes that are agreed to by the 
     Secretary and Yavapai Ranch.

[[Page S489]]

       (3) An easement described in paragraph (2) shall be 
     unrestricted and non-exclusive in nature and shall run with 
     and benefit the land.
       (g) Conveyance of Federal Land to Cities and Camps.--(1) 
     Prior to the completion of the land exchange between Yavapai 
     Ranch and the Secretary, the cities and the owners of the 
     camps may enter into agreements with Yavapai Ranch whereby 
     Yavapai Ranch, upon completion of the land exchange, will 
     convey to the cities or the owners of the camps the 
     applicable parcel of Federal land or portion thereof.
       (2) If Yavapai Ranch and the cities or camp owners have not 
     entered into agreements in accordance with paragraph (1), the 
     Secretary shall, on notification by the cities or owners of 
     the camps no later than 30 days after the date the relevant 
     approved appraisal is made publicly available, delete the 
     applicable parcel or portion thereof from the land exchange 
     between Yavapai Ranch and the United States as follows:
       (A) Upon request of the City of Flagstaff, Arizona, the 
     parcels, or portion thereof, described in section 104(a)(2).
       (B) Upon request of the City of Williams, Arizona, the 
     parcels, or portion thereof, described in section 104(a)(3).
       (C) Upon request of the City of Camp Verde, Arizona, a 
     portion of the parcel described in section 104(a)(4), 
     comprising approximately 514 acres located southeast of the 
     southeastern boundary of the I-17 right-of-way, and more 
     particularly described as the SE\1/4\ portion of the 
     southeast quarter of section 26, the E\1/2\ and the E\1/
     2\W\1/2\ portions of section 35, and lots 5 through 7 of 
     section 36, Township 14 North, Range 4 East, Gila and Salt 
     River Base and Meridian, Yavapai County, Arizona.
       (D) Upon request of the owners of the Younglife Lost Canyon 
     camp, the parcel described in section 104(a)(5).
       (E) Upon request of the owner of Friendly Pines Camp, 
     Patterdale Pines Camp, Camp Pearlstein, Pine Summit, or Sky Y 
     Camp, as applicable, the corresponding parcel described in 
     section 104(a)(6).
       (3)(A) Upon request of the specific city or camp referenced 
     in paragraph (2), the Secretary shall convey to such city or 
     camp all right, title, and interest of the United States in 
     and to the applicable parcel of Federal land or portion 
     thereof, upon payment of the fair market value of the parcel 
     and subject to any terms and conditions the Secretary may 
     require.
       (B) A conveyance under this paragraph shall not require new 
     administrative or environmental analyses or appraisals beyond 
     those prepared for the land exchange.
       (4) A city or owner of a camp purchasing land under this 
     subsection shall reimburse Yavapai Ranch for any costs 
     incurred which are directly associated with surveys and 
     appraisals of the specific property conveyed.
       (5) A conveyance of land under this subsection shall not 
     affect the timing of the land exchange.
       (6) Nothing in this subsection limits the authority of the 
     Secretary or Yavapai Ranch to delete any of the parcels 
     referenced in this subsection from the land exchange.
       (7)(A) The Secretary shall deposit the proceeds of any sale 
     under paragraph (2) in a special account in the fund 
     established under Public Law 90-171 (commonly known as the 
     ``Sisk Act'') (16 U.S.C. 484a).
       (B) Amounts deposited under subparagraph (A) shall be 
     available to the Secretary, without further appropriation, to 
     be used for the acquisition of land in the State of Arizona 
     for addition to the National Forest System, including the 
     land to be exchanged under this title.

     SEC. 103. DESCRIPTION OF NON-FEDERAL LAND.

       (a) In General.--The non-Federal land referred to in this 
     title consists of approximately 35,000 acres of privately-
     owned land within the boundaries of the Prescott National 
     Forest, as generally depicted on the map entitled ``Yavapai 
     Ranch Land Exchange, Non-Federal Lands'', dated August 2004.
       (b) Easements.--(1) The conveyance of non-Federal land to 
     the United States under section 102 shall be subject to the 
     reservation of--
       (A) water rights and perpetual easements that run with and 
     benefit the land retained by Yavapai Ranch for--
       (i) the operation, maintenance, repair, improvement, 
     development, and replacement of not more than 3 wells in 
     existence on the date of enactment of this Act;
       (ii) related storage tanks, valves, pumps, and hardware; 
     and
       (iii) pipelines to point of use; and
       (B) easements for reasonable access to accomplish the 
     purposes of the easements described in subparagraph (A).
       (2) Each easement for an existing well referred to in 
     paragraph (1) shall be 40 acres in area, and to the maximum 
     extent practicable, centered on the existing well.
       (3) The United States shall be entitled to one-half the 
     production of each existing or replacement well, not to 
     exceed a total of 3,100,000 gallons of water annually for 
     National Forest System purposes.
       (4) The locations of the easements and wells shall be as 
     generally depicted on the map entitled ``Yavapai Ranch Land 
     Exchange, Reserved Easements for Water Lines and Wells'', 
     dated August 2004.

     SEC. 104. DESCRIPTION OF FEDERAL LAND.

       (a) In General.--The Federal land referred to in this title 
     consists of the following:
       (1) Certain land comprising approximately 15,300 acres 
     located in the Prescott National Forest, as generally 
     depicted on the map entitled ``Yavapai Ranch Land Exchange, 
     Yavapai Ranch Area Federal Lands'', dated August 2004.
       (2) Certain land located in the Coconino National Forest--
       (A) comprising approximately 1,500 acres as generally 
     depicted on the map entitled ``Yavapai Ranch Land Exchange, 
     Flagstaff Federal Lands Airport Parcel'', dated August 2004; 
     and
       (B) comprising approximately 28.26 acres in two separate 
     parcels, as generally depicted on the map entitled ``Yavapai 
     Ranch Land Exchange, Flagstaff Federal Lands Wetzel School 
     and Mt. Elden Parcels'', dated August 2004.
       (3) Certain land located in the Kaibab National Forest, and 
     referred to as the Williams Airport, Williams golf course, 
     Williams Sewer, Buckskinner Park, Williams Railroad, and Well 
     parcels number 2, 3, and 4, cumulatively comprising 
     approximately 950 acres, as generally depicted on the map 
     entitled ``Yavapai Ranch Land Exchange, Williams Federal 
     Lands'', dated August 2004.
       (4) Certain land located in the Prescott National Forest, 
     comprising approximately 2,200 acres, as generally depicted 
     on the map entitled ``Yavapai Ranch Land Exchange, Camp Verde 
     Federal Land General Crook Parcel'', dated August 2004.
       (5) Certain land located in the Kaibab National Forest, 
     comprising approximately 237.5 acres, as generally depicted 
     on the map entitled ``Yavapai Ranch Land Exchange, Younglife 
     Lost Canyon'', dated August 2004.
       (6) Certain land located in the Prescott National Forest, 
     including the ``Friendly Pines'', ``Patterdale Pines'', 
     ``Camp Pearlstein'', ``Pine Summit'', and ``Sky Y'' camps, 
     cumulatively comprising approximately 200 acres, as generally 
     depicted on the map entitled ``Yavapai Ranch Land Exchange, 
     Prescott Federal Lands, Summer Youth Camp Parcels'', dated 
     August 2004.
       (b) Condition of Conveyance of Camp Verde Parcel.--(1) To 
     conserve water in the Verde Valley, Arizona, and to minimize 
     the adverse impacts from future development of the Camp Verde 
     General Crook parcel described in subsection (a)(4) on 
     current and future holders of water rights in existence of 
     the date of enactment of this Act and the Verde River and 
     National Forest System lands retained by the United States, 
     the United States shall limit in perpetuity the use of water 
     on the parcel by reserving conservation easements that--
       (A) run with the land;
       (B) prohibit golf course development on the parcel;
       (C) require that any public park or greenbelt on the parcel 
     be watered with treated wastewater;
       (D) limit total post-exchange water use on the parcel to 
     not more than 300 acre-feet of water per year;
       (E) provide that any water supplied by municipalities or 
     private water companies shall count towards the post-exchange 
     water use limitation described in subparagraph (D); and
       (F) except for water supplied to the parcel by municipal 
     water service providers or private water companies, require 
     that any water used for the parcel not be withdrawn from 
     wells perforated in the saturated Holocene alluvium of the 
     Verde River.
       (2) If Yavapai Ranch conveys the Camp Verde parcel 
     described in subsection (a)(4), or any portion thereof, the 
     terms of conveyance shall include a recorded and binding 
     agreement of the quantity of water available for use on the 
     land conveyed, as determined by Yavapai Ranch, except that 
     total water use on the Camp Verde parcel may not exceed the 
     amount specified in paragraph (1)(D).
       (3) The Secretary may enter into a memorandum of 
     understanding with the State or political subdivision of the 
     State to enforce the terms of the conservation easement.

     SEC. 105. STATUS AND MANAGEMENT OF LAND AFTER EXCHANGE.

       (a) In General.--Land acquired by the United States under 
     this title shall become part of the Prescott National Forest 
     and shall be administered by the Secretary in accordance with 
     this title and the laws applicable to the National Forest 
     System.
       (b) Grazing.--Where grazing on non-Federal land acquired by 
     the Secretary under this title occurs prior to the date of 
     enactment of this Act, the Secretary may manage the land to 
     allow for continued grazing use, in accordance with the laws 
     generally applicable to domestic livestock grazing on 
     National Forest System land.
       (c) Timber Harvesting.--(1) After completion of the land 
     exchange under this title, except as provided in paragraph 
     (2), commercial timber harvesting shall be prohibited on the 
     non-Federal land acquired by the United States.
       (2) Timber harvesting may be conducted on the non-Federal 
     land acquired under this title if the Secretary determines 
     that such harvesting is necessary--
       (A) to prevent or control fires, insects, and disease 
     through forest thinning or other forest management 
     techniques;
       (B) to protect or enhance grassland habitat, watershed 
     values, native plants and wildlife species; or
       (C) to improve forest health.

     SEC. 106. MISCELLANEOUS PROVISIONS.

       (a) Revocation of Orders.--Any public orders withdrawing 
     any of the Federal land

[[Page S490]]

     from appropriation or disposal under the public land laws are 
     revoked to the extent necessary to permit disposal of the 
     Federal land.
       (b) Withdrawal of Federal Land.--Subject to valid existing 
     rights, the Federal land is withdrawn from all forms of entry 
     and appropriation under the public land laws; location, 
     entry, and patent under the mining laws; and operation of the 
     mineral leasing and geothermal leasing laws, until the date 
     on which the land exchange is completed.
       (c) Completion of Exchange.--It is the intent of Congress 
     that the land exchange authorized and directed under this 
     title be completed not later than 18 months after the date of 
     enactment of this Act.

     SEC. 107. CONVEYANCE OF ADDITIONAL LAND.

       (a) In General.--The Secretary shall convey to a person 
     that represents the majority of landowners with encroachments 
     on the lot by quitclaim deed the parcel of land described in 
     subsection (b).
       (b) Description of Land.--The parcel of land referred to in 
     subsection (a) is lot 8 in section 11, T. 21 N., R. 7 E., 
     Gila and Salt River Base and Meridian, Coconino County, 
     Arizona.
       (c) Amount of Consideration.--In exchange for the land 
     described in subsection (b), the person acquiring the land 
     shall pay to the Secretary consideration in the amount of--
       (1) $2500; plus
       (2) any costs of re-monumenting the boundary of land.
       (d) Timing.--(1) Not later than 90 days after the date on 
     which the Secretary receives a power of attorney executed by 
     the person acquiring the land, the Secretary shall convey to 
     the person the land described in subsection (b).
       (2) If, by the date that is 270 days after the date of 
     enactment of this Act, the Secretary does not receive the 
     power of attorney described in paragraph (1)--
       (A) the authority provided under this section shall 
     terminate; and
       (B) any conveyance of the land shall be made under Public 
     Law 97-465 (16 U.S.C. 521c et seq.).

                TITLE II--VERDE RIVER BASIN PARTNERSHIP

     SEC. 201. PURPOSE.

       The purpose of this title is to authorize assistance for a 
     collaborative and science-based water resource planning and 
     management partnership for the Verde River Basin in the State 
     of Arizona, consisting of members that represent--
       (1) Federal, State, and local agencies; and
       (2) economic, environmental, and community water interests 
     in the Verde River Basin.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Director.--The term ``Director'' means the Director of 
     the Arizona Department of Water Resources.
       (2) Partnership.--The term ``Partnership'' means the Verde 
     River Basin Partnership.
       (3) Plan.--The term ``plan'' means the plan for the Verde 
     River Basin required by section 204(a)(1).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (5) State.--The term ``State'' means the State of Arizona.
       (6) Verde river basin.--The term ``Verde River Basin'' 
     means the land area designated by the Arizona Department of 
     Water Resources as encompassing surface water and groundwater 
     resources, including drainage and recharge areas with a 
     hydrologic connection to the Verde River.
       (7) Water budget.--The term ``water budget'' means the 
     accounting of--
       (A) the quantities of water leaving the Verde River Basin--
       (i) as discharge to the Verde River and tributaries;
       (ii) as subsurface outflow;
       (iii) as evapotranspiration by riparian vegetation;
       (iv) as surface evaporation;
       (v) for agricultural use; and
       (vi) for human consumption; and
       (B) the quantities of water replenishing the Verde River 
     Basin by precipitation, infiltration, and subsurface inflows.

     SEC. 203. VERDE RIVER BASIN PARTNERSHIP.

       (a) In General.--The Secretary may participate in the 
     establishment of a partnership, to be known as the ``Verde 
     River Basin Partnership'', made up of Federal, State, local 
     governments, and other entities with responsibilities and 
     expertise in water to coordinate and cooperate in the 
     identification and implementation of comprehensive science-
     based policies, projects, and management activities relating 
     to the Verde River Basin.
       (b) Authorization of Appropriations.--On establishment of 
     the Partnership, there are authorized to be appropriated to 
     the Secretary and the Secretary of the Interior such sums as 
     are necessary to carry out the activities of the Partnership 
     for each of fiscal years 2006 through 2010.

     SEC. 204. VERDE RIVER BASIN STUDIES.

       (a) Studies.--
       (1) In general.--The Partnership shall prepare a plan for 
     conducting water resource studies in the Verde River Basin 
     that identifies--
       (A) the primary study objectives to fulfill water resource 
     planning and management needs for the Verde River Basin; and
       (B) the water resource studies, hydrologic models, surface 
     and groundwater monitoring networks, and other analytical 
     tools helpful in the identification of long-term water supply 
     management options within the Verde River Basin.
       (2) Requirements.--At a minimum, the plan shall--
       (A) include a list of specific studies and analyses that 
     are needed to support Partnership planning and management 
     decisions;
       (B) identify any ongoing or completed water resource or 
     riparian studies that are relevant to water resource planning 
     and management for the Verde River Basin;
       (C) describe the estimated cost and duration of the 
     proposed studies and analyses; and
       (D) designate as a study priority the compilation of a 
     water budget analysis for the Verde Valley.
       (b) Verde Valley Water Budget Analysis.--
       (1) In general.--Subject to the availability of 
     appropriations, not later than 14 months after the date of 
     enactment of this Act, the Director of the U.S. Geological 
     Survey, in cooperation with the Director, shall prepare and 
     submit to the Partnership a report that provides a water 
     budget analysis of the portion of the Verde River Basin 
     within the Verde Valley.
       (2) Components.--The report submitted under paragraph (1) 
     shall include--
       (A) a summary of the information available on the 
     hydrologic flow regime for the portion of the Middle Verde 
     River from the Clarkdale streamgauging station to the city of 
     Camp Verde at United States Geological Survey Stream Gauge 
     09506000;
       (B) with respect to the portion of the Middle Verde River 
     described in subparagraph (A), estimates of--
       (i) the inflow and outflow of surface water and 
     groundwater;
       (ii) annual consumptive water use; and
       (iii) changes in groundwater storage; and
       (C) an analysis of the potential long-term consequences of 
     various water use scenarios on groundwater levels and Verde 
     River flows.
       (c) Preliminary Report and Recommendations.--.
       (1) In general.--Not later than 16 months after the date of 
     enactment of this Act, using the information provided in the 
     report submitted under subsection (b) and any other relevant 
     information, the Partnership shall submit to the Secretary, 
     the Governor of Arizona, and representatives of the Verde 
     Valley communities, a preliminary report that sets forth the 
     findings and recommendations of the Partnership regarding the 
     long-term available water supply within the Verde Valley.
       (2) Consideration of recommendations.--The Secretary may 
     take into account the recommendations included in the report 
     submitted under paragraph (1) with respect to decisions 
     affecting land under the jurisdiction of the Secretary, 
     including any future sales or exchanges of Federal land in 
     the Verde River Basin after the date of enactment of this 
     Act.
       (3) Effect.--Any recommendations included in the report 
     submitted under paragraph (1) shall not affect the land 
     exchange process or the appraisals of the Federal land and 
     non-Federal land conducted under sections 103 and 104.

     SEC. 205. VERDE RIVER BASIN PARTNERSHIP FINAL REPORT.

       Not later than 4 years after the date of enactment of this 
     Act, the Partnership shall submit to the Secretary and the 
     Governor of Arizona a final report that--
       (1) includes a summary of the results of any water resource 
     assessments conducted under this title in the Verde River 
     Basin;
       (2) identifies any areas in the Verde River Basin that are 
     determined to have groundwater deficits or other current or 
     potential water supply problems;
       (3) identifies long-term water supply management options 
     for communities and water resources within the Verde River 
     Basin; and
       (4) identifies water resource analyses and monitoring 
     needed to support the implementation of management options.

     SEC. 206. MEMORANDUM OF UNDERSTANDING.

       The Secretary (acting through the Chief of the Forest 
     Service) and the Secretary of the Interior, shall enter into 
     a memorandum of understanding authorizing the United States 
     Geological Survey to access Forest Service land (including 
     stream gauges, weather stations, wells, or other points of 
     data collection on the Forest Service land) to carry out this 
     title.

     SEC. 207. EFFECT.

       Nothing in this title diminishes or expands State or local 
     jurisdiction, responsibilities, or rights with respect to 
     water resource management or control.

  Mr. KYL. Mr. President, today, I am pleased to join with Senator 
McCain to introduce the Northern Arizona Land Exchange and Verde River 
Basin Partnership Act of 2005. This bill facilitates a large and 
complex land exchange of over 50,000 acres of Federal and private land 
in Arizona to consolidate the largest remaining checkerboard ownership 
in the State. It also encourages the formation of a partnership between 
Federal, State, and local stakeholders to facilitate sound water 
resource planning and management in the Verde River Basin. This bill is 
the product of two years of discussions and compromise between the 
Arizona delegation, United States Forest Service,

[[Page S491]]

community groups, local officials, and other stakeholders. The bill 
passed the Senate last session, but unfortunately was not enacted 
before adjournment. I am introducing this legislation with the hope 
that the Senate will act quickly to pass it early in this Congress.
  The bill is divided into two titles. Title I provides the framework 
for the land exchange between Yavapai Ranch Limited Partnership and the 
United States Forest Service. Title II outlines the key aspects of the 
Verde River Basin Partnership. The land exchange outlined in Title I is 
a fair and equitable exchange that will yield many environmental 
benefits to the citizens of Arizona. It will place approximately 35,000 
acres of private land in federal ownership for public use. This acreage 
is important ecologically because it contains such key features as old 
growth ponderosa pine, and high quality grassland that serves as 
excellent habitat for pronghorn antelope and is critical to the 
preservation of the watershed. In addition, it consolidates under 
Forest Service ownership a 110-square mile area in the Prescott 
National Forest near the existing Juniper Mesa Wilderness, to preserve 
the area in its natural state. Without this land exchange, these 
private tracts would be open to future development. I am pleased that 
this bill will preserve them for future generations.
  The land exchange also significantly improves the management of the 
Prescott National Forest. The existing checkboard ownership pattern 
makes management and access difficult. By consolidating this land, the 
exchange will enable the Forest Service will be able to effectively 
apply forest restoration treatments to reduce the fire risk and improve 
the overall health of the forest. I cannot emphasize enough how crucial 
this is, given the history of devastating forest fires in the state.
  In addition to protecting Arizona's natural resources, Title I of the 
bill allows several Northern Arizona communities to accommodate future 
growth and economic development, and to meet other municipal needs. 
This exchange will allow the cities of Flagstaff and Williams to expand 
their airports, meet their water-treatment needs, and develop town 
parks and recreation areas. The town of Camp Verde will have an 
opportunity to acquire land to build an emergency center and protect 
its viewshed. Several youth organizations will be able to acquire land 
for their camps.
  This bill addresses one of the most crucial challenges facing 
Arizona: sound management of water resources. I have heard from many 
state and local officials, and the constituents affected by the land 
exchange, that we needed to do more in this bill to address water 
issues. I note in response that this bill has two key features: First, 
it establishes a conservation easement on the Camp Verde General Crook 
parcel, which limits water use after private acquisition to just 300 
acre feet a year. This limitation was strengthened from the previous 
versions of the bill which included a use restriction of 700 acre feet 
a year. This provision sets an important precedent for responsible 
water use in the Verde Valley and across the state. Second, and most 
recently, Senator McCain and I added Title II to the bill. This title 
facilitates and encourages the creation of the Verde River Basin 
Partnership to examine water issues in the long term. Such a 
collaborative, multi-stakeholder group would be authorized to receive 
federal assistance to develop the scientific and technical data needed 
to make sound water-management decisions.
  Finally, this bill saves significant taxpayer dollars. It obviates 
the administrative route for a land exchange; doing an exchange of this 
size administratively would require considerable financial and 
personnel resources from the Forest Service. The agency estimates that 
using legislation instead will cost half as much as the administrative 
alternative--resulting in potential savings to the taxpayers in excess 
of $500,000.
  This land exchange is a unique opportunity to protect Arizona's 
natural resources, accommodate the state's tremendous growth, and plan 
for the future. I intend to work with my colleagues to ensure that we 
pass this important legislation this year.
                                 ______