[Congressional Record Volume 155, Number 62 (Monday, April 27, 2009)]
[Senate]
[Pages S4760-S4763]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. MERKLEY (for himself and Mr. Wyden):
  S. 901. A bill to establish the Oregon Task Force on Sustainable 
Revenue for Counties, and for other purposes; to the Committee on 
Energy and Natural Resources.
  Mr. MERKLEY. Mr. President, today I am introducing the Sustainable 
Revenue for Oregon Counties Act, a bill aimed at finding a sustainable 
long-term solution to the revenue problems faced by Oregon's timber-
dependent counties and other timber-dependent counties across our 
Nation. This bill, which is cosponsored by Senator Ron Wyden, will 
establish a task force to determine the best way to provide counties 
with a dependable source of revenue after the current county payments 
program expires.
  Last year I promised that county payments would be the subject of my 
first bill as a Senator because addressing this issue is essential to 
the long-term success of Oregon's rural counties. Thanks to the hard 
work of Senator Wyden and our congressional delegation, payments are in 
place for the next 2 years. But we need to start preparing for what 
happens next.
  Let me give some background on this critical issue. Like many Western 
States, the Federal Government owns much of Oregon's land base. More 
than half of Oregon's land is federally owned. One class of the Federal 
lands is the O&C lands. These lands were granted to Oregon & California 
Railroad in 1866 and later reverted to the Federal Government when the 
railroad failed to live up to terms of the grant. They also included a 
class of lands that originated from a similar situation, the Coos Bay 
Wagon Road lands. These O&C lands make up 2.2 million acres in western 
and southern Oregon.
  Then there are Forest Service lands--timbered lands owned by the 
Forest Service, managed--that make up 14 million additional acres 
across our State.
  In both cases, the Federal Government has allocated a share of the 
revenue generated by cutting timber to compensate local counties for 
their services. Since 1908, in fact, the Federal Government has 
compensated counties for the revenue lost due to Forest Service lands 
with a simple formula: 25 percent of the revenue earned by harvesting 
timber. Since 1937 the Federal Government has sustained a similar 
commitment on our O&C lands. The O&C Act provided that counties receive 
75 percent of the timber harvest revenues, and since 1957 that was 
reasserted with 50 percent going directly to the counties and 25 
percent put into management.
  Then along came the 1990s and something happened. What happened is, 
the Federal Government started saying for other reasons--environmental 
reasons, stewardship reasons--we were going to change the harvest 
practices on these lands. That has had a direct impact, a deep, 
profound impact on our timber counties. A deal was struck. In fact, in 
1993, President Clinton proposed and Congress enacted a program to 
augment timber payments with Federal payments based on the historic 
harvest levels so the people of Oregon's timber counties will not be 
paying the price for the environmental goals and other goals that were 
put forward. This is a deal, this is a core foundation agreement 
between the Federal Government and our timber counties.
  This program was modified in 2000 under the leadership of our senior 
Senator from Oregon, and the program became the Secure Rural Schools 
and Community Self-Determination Act. That program, though, had a 
sunset in 2006 when the program disappeared that started to wreak havoc 
on our timber-dependent counties.
  In Josephine County two-thirds of the county's general fund came from 
county payments. Loss of county payments meant cutting public safety 
programs. Overnight, patrols were down to one 10-hour shift split among 
six deputies covering an area the size of the State of Rhode Island.

[[Page S4761]]

  In Harney County--where 78 percent of the landmass, an area the size 
of New Jersey, is federally controlled--70 percent of the road funds 
come from Federal payments.
  In Lake County, Federal land, making up 61 percent of the county, is 
in anticipation of losing Federal funding, so the county had to cut its 
Federal Road Department from 42 individuals to 14--14 for a road 
department for a county the size of Connecticut and Delaware combined.
  In Jackson County, where one-third of the general fund comes from 
Federal payments, Jackson County eliminated 117 jobs in parks, human 
services, roads, public safety, and closed all of their libraries.
  This issue was so substantial that the Oregon Legislature, when I 
served as speaker, redirected more than $50 million in transportation 
funds away from counties under the normal formula to a formula based on 
the loss of the Federal timber dollars.
  The good news is that due to the tireless work of the senior Senator 
from my State, Mr. Wyden, and our colleagues in the other Chamber, 
counties received a 1-year reprieve in 2007 and just last fall a 4-year 
extension. But now we are faced again with expiration of these critical 
resources in 2011. So today I am here to propose a strategy to develop 
a coherent plan, a plan for restoring fiscal security and sustainable 
revenue to our counties so that, despite the crushing economic 
situation our counties are facing today--and unemployment is second 
highest in the Nation in Oregon, and in the timber-dependent counties 
far higher than the average, many with 14, 16, 18 percent 
unemployment--despite that, we need to provide a foundation for 
transition in 2011.
  There are many elements that can go into this coherent strategy. Our 
forests, millions of acres of second growth forests are overgrown and 
need to be thinned to restore forest health and prevent forest fires. 
Increasing the harvest could generate revenue. The material cleared 
from the forest could be used to generate biomass energy and cellulosic 
biofuels, and harvesting that material, that biomass, could generate 
revenue.
  Our forests can be used to sequester carbon, and the forests of the 
Northwest are potentially the largest carbon sink we have, so 
management to increase carbon sequestration could be a source of 
revenue.
  Increased use of public lands by visitors brings economic benefit to 
our counties and these recreational and tourism activities could be a 
source of revenues.
  Certainly, we need to look at the historic deal struck between the 
Federal Government and the counties and find a way to sustain it into 
the future--that deal saying, if we are going to put restrictions on 
the timber harvest under these traditional timberlands that we are 
going to compensate counties for the lost revenue.
  This bill creates a task force with 15 members. Four members come 
from timber counties. They get their firsthand reports from the front 
line. One member each represents timber, conservation, recreation, and 
labor organizations--as well as a member from the Governor's office and 
a member from Oregon's tribes.
  Then the task force will be expanded to include members who are 
experts on sustainable forestry, on natural resource economics, on 
biomass energy, on carbon sequestration, and on habitat conservation.
  This task force is charged with developing a long-term plan to raise 
sustainable revenue for Oregon's counties, and it will consider all of 
the concepts that I have mentioned, as well as others that are proposed 
or that come up in the course of the task force's work. They are going 
to report back two strategies for consideration within 9 months of this 
bill being enacted.
  Timberlands are an important part of the national economy and an 
extremely important part of the Oregon economy. Timber products can be 
used to help us address next generation biofuels. Timber can be used to 
sequester carbon. It is a creative, adaptable building material, and 
our timber counties have been hit particularly hard by the downturn in 
the national housing market.
  So we need to sustain the traditional deal with Oregon's timber 
counties and with timber counties across this country. That is what 
this bill is intended to do. I am very proud to introduce it as my 
first bill as a Senator.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
placed in the Record, as follows:

                                 S. 901

       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 ``Sustainable Revenue for 
     Oregon Counties Act of 2009''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) more than half of the land in the State of Oregon is 
     owned by the Federal Government;
       (2) in many counties of the State, significant portions of 
     the land of the counties (often significantly more than half 
     of the land of the counties) is owned by the Federal 
     Government;
       (3) the land described in paragraph (2) includes Forest 
     Service land and Oregon and California grant land;
       (4) the counties described in paragraph (2) are unable to 
     derive revenue from property taxes on land owned by the 
     Federal Government;
       (5) historically, payments made by the Federal Government 
     based on revenues from harvesting timber (including Oregon 
     and California grant land and Forest Service payments) have 
     provided a revenue substitute for property taxes;
       (6) the Secure Rural Schools and Community Self-
     Determination Act of 2000 (16 U.S.C. 500 note; Public Law 
     106-393) augmented the payments described in paragraph (5) 
     because of a significant decline in timber harvest revenues;
       (7) Congress extended the payments described in paragraph 
     (6) for 1 year in 2007, and for 4 years effective beginning 
     in 2008, to provide time to develop a long-term sustainable 
     alternative to the payments described in paragraph (6);
       (8) the prospects for a long-term extension are uncertain 
     because of concerns regarding Federal budget deficits and 
     long-term financial assistance to local governments of the 
     State;
       (9) counties of the State that have historically received 
     the payments described in paragraph (5) are in need of a 
     sustainable, long-term revenue source;
       (10) there are opportunities for the conduct of activities 
     in the Federal forest land of the counties of the State that 
     could be structured to be economically and environmentally 
     sustainable, including--
       (A) the harvesting of timber (including thinning to restore 
     forest health) in a sustainable manner and in sustainable 
     quantities;
       (B) the removal of biomass material from the forest land 
     for--
       (i) the generation of electricity; and
       (ii) the production of cellulosic biofuels;
       (C) the conduct of activities that could--
       (i) increase the sequestration by the forest land of 
     atmospheric carbon; or
       (ii) provide other ecosystem services for communities, such 
     as clean water; and
       (D) the conduct of recreational activities;
       (11) other sources of revenue, including State and local 
     revenue sources, should also be considered in selecting a 
     sustainable, long-term revenue source; and
       (12) payments made by the Federal Government could be 
     continued under a variety of different payment methodologies.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Secretaries concerned.--The term ``Secretaries 
     concerned'' means--
       (A) the Secretary of Agriculture; and
       (B) the Secretary of the Interior.
       (2) State.--The term ``State'' means the State of Oregon.
       (3) Task force.--The term ``Task Force'' means the Oregon 
     Task Force on Sustainable Revenue for Counties established by 
     section 4(a).

     SEC. 4. TASK FORCE.

       (a) Establishment.--There is established a task force to be 
     known as the ``Oregon Task Force on Sustainable Revenue for 
     Counties''.
       (b) Membership.--
       (1) Composition.--The Task Force shall be composed of 15 
     members, of whom--
       (A) 4 members shall be appointed by the Secretaries 
     concerned, of whom--
       (i) each shall represent a county of the State; and
       (ii) 2 shall represent counties in which there is located 
     Oregon and California grant land;
       (B) 1 member shall be appointed by the Governor of the 
     State as the representative of the Governor of the State;
       (C) 1 member shall be appointed by the Secretaries 
     concerned from among persons who are experts in economics 
     (including natural resource economics);
       (D) 1 member shall be appointed by the Secretaries 
     concerned from among persons who are experts in sustainable 
     forestry practices;
       (E) 1 member shall be appointed by the Secretaries 
     concerned from among persons who are experts in scientific 
     and economic aspects of biomass energy;
       (F) 1 member shall be appointed by the Secretaries 
     concerned from among persons

[[Page S4762]]

     who are experts in the scientific aspects of ecosystem 
     services that are provided by temperate forests (including, 
     at a minimum, the scientific aspects of carbon 
     sequestration);
       (G) 1 member shall be appointed by the Secretaries 
     concerned from among persons who are experts in fields 
     relating to wildlife habitat, endangered species, and 
     biodiversity;
       (H) 1 member shall be appointed by the Secretaries 
     concerned as a representative of the forest products industry 
     located in the State;
       (I) 1 member shall be appointed by the Secretaries 
     concerned as a representative of regionally or locally 
     recognized conservation organizations located in the State;
       (J) 1 member shall be appointed by the Secretaries 
     concerned as a representative of--
       (i) organized labor; or
       (ii) nontimber forest product harvester groups;
       (K) 1 member shall be appointed by the Secretaries 
     concerned as a representative of persons who participate in 
     or provide recreational activities or are engaged in related 
     activities; and
       (L) 1 member shall be appointed by the Secretaries 
     concerned as a representative of Indian tribes that are 
     located in the State.
       (2) Date of appointments.--The appointment of a member of 
     the Task Force shall be made not later than 60 days after the 
     date of enactment of this Act.
       (c) Term; Vacancies.--
       (1) Term.--A member shall be appointed for the life of the 
     Task Force.
       (2) Vacancies.--A vacancy on the Task Force--
       (A) shall not affect the powers of the Task Force; and
       (B) shall be filled in the same manner as the original 
     appointment was made.
       (d) Initial Meeting.--Not later than 30 days after the date 
     on which all members of the Task Force have been appointed, 
     the Task Force shall hold the initial meeting of the Task 
     Force.
       (e) Meetings.--
       (1) In general.--The Task Force shall meet at the call of 
     the Chairperson.
       (2) Public access.--Each meeting of the Task Force shall be 
     open to the public.
       (f) Quorum.--A majority of the members of the Task Force 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (g) Chairperson and Vice Chairperson.--The Task Force shall 
     select a Chairperson and Vice Chairperson from among the 
     members of the Task Force.

     SEC. 5. DUTIES.

       (a) Consideration and Review of Revenue Sources.--
       (1) In general.--The Task Force shall consider and review 
     concepts for the establishment of a long-term revenue source 
     for counties located in the State that have historically 
     received Federal funds.
       (2) Revenue sources.--In conducting the consideration and 
     review under paragraph (1), in accordance with paragraph (3), 
     the Task Force shall consider--
       (A) revenue sources proposed by relevant legislation or 
     administrative actions;
       (B) payments based on timber harvests (including thinning 
     to restore forest health) carried out at sustainable levels;
       (C) payments based on revenues that each county of the 
     State could have received through property taxation if the 
     land owned by the Federal Government located in the county 
     was privately held and subject to a property tax;
       (D) revenue based on--
       (i) a portion of the proceeds from sales of material 
     collected from public land located in the State for the 
     production of biomass electricity or cellulosic liquid 
     transportation fuels;
       (ii) user fees for recreational activities carried out on 
     public land located in the State;
       (iii) payments for increases in carbon sequestration; and
       (iv) land exchanges or transfers that could provide 
     compensation for nontaxable Federal land located in counties 
     of the State;
       (E) local sources of revenue that could be used to reduce 
     or eliminate the reliance of counties of the State on Federal 
     funds (including taxes, user fees, or economic development 
     activities that could increase the revenue base of the 
     counties of the State);
       (F) payments made by the Federal Government to the counties 
     of the State, including--
       (i) guaranteed payments that are to be established at a 
     reduced level and not based on timber harvest revenues; and
       (ii) guaranteed payments that are to be established--

       (I) at a level similar to the level of payments 
     reauthorized in 2008;
       (II) in part by timber harvest revenues; and
       (III) with the use of additional Federal funds to the 
     extent that timber harvest revenues described in subclause 
     (II) do not meet the guaranteed level of payment; and

       (G) any other revenue source that the Task Force determines 
     to be appropriate for consideration and review.
       (3) Factors.--In considering each revenue source under 
     paragraph (2), the Task Force shall take into account--
       (A) the long-term sustainability of each revenue source 
     considered under paragraph (2);
       (B) the relative value, long-term sustainability, and any 
     other implication of the relative reliance of the counties of 
     the State on revenues arising from Federal forests located in 
     the counties, as compared to other local revenue sources;
       (C) the potential long-term effects of each revenue source 
     considered under paragraph (2) on the economies of the 
     counties of the State;
       (D) revenue sources that are used by other cities or 
     counties of the State;
       (E) the environmental effects of each revenue source 
     considered under paragraph (2);
       (F) the effect of each revenue source considered under 
     paragraph (2) on local revenue streams and county services; 
     and
       (G) comments submitted to the Task Force by a stakeholder 
     relating to any issue or proposal considered by the Task 
     Force.
       (b) Hearings.--
       (1) In general.--The Task Force shall hold such hearings, 
     meet and act at such times and places, take such testimony, 
     and receive such evidence as the Task Force considers 
     advisable to receive the input and determine the opinions of 
     the public and stakeholders with respect to the establishment 
     of a sustainable, long-term revenue source for the counties 
     of the State.
       (2) Incorporation of public and stakeholder input.--In 
     preparing the report required under subsection (c), the Task 
     Force shall incorporate into the recommendations of the Task 
     Force required under subsection (c)(2), to the maximum extent 
     practicable, the public and stakeholder input received under 
     paragraph (1).
       (c) Report.--Not later than 9 months after the date of 
     enactment of this Act, the Task Force shall submit to the 
     Committee on Natural Resources of the House of 
     Representatives and the Committee on Energy and Natural 
     Resources of the Senate a report that contains--
       (1) a detailed statement of the findings and conclusions of 
     the Task Force;
       (2) a description of not less than 2 policy scenarios for 
     providing sustainable revenue to the counties of the State 
     that are recommended by not less than \3/5\ of the members of 
     the Task force for consideration by the Federal Government, 
     the State, and the counties of the State as the Task Force 
     considers appropriate (including such legislation and 
     administrative actions necessary to implement each policy 
     scenario);
       (3) a description of the opinion of each member of the Task 
     Force regarding each policy scenario described in paragraph 
     (2);
       (4) a description of the minority views of each member of 
     the Task Force who does not support any policy scenario 
     described in paragraph (2);
       (5) a description of each revenue source considered but not 
     recommended by the Task Force under paragraph (2), 
     including--
       (A) an explanation of each reason why the Task Force did 
     not recommend the policy scenario; and
       (B) a description of the minority views of each member of 
     the Task Force relating to the decision by the Task Force not 
     to recommend the policy scenario; and
       (6) a summary of comments received by the Task Force under 
     subsections (a)(3)(G) and (b)(1).
       (d) Required Hearings.--Not later than 60 days after the 
     date on which each committee described in subsection (c) 
     receives the report required under that subsection, each 
     committee shall hold a hearing to evaluate the 
     recommendations contained in the report.

     SEC. 6. POWERS.

       (a) Information From Federal Agencies.--
       (1) In general.--The Task Force may secure directly from a 
     Federal agency such information as the Task Force considers 
     necessary to carry out this Act.
       (2) Provision of information.--On request of the 
     Chairperson of the Task Force, the head of the agency shall 
     provide the information to the Task Force.
       (b) Postal Services.--The Task Force may use the United 
     States mails in the same manner and under the same conditions 
     as other agencies of the Federal Government.
       (c) Gifts.--The Task Force may accept, use, and dispose of 
     gifts or donations of services or property.

     SEC. 7. TASK FORCE PERSONNEL MATTERS.

       (a) Compensation of Members.--Each member of the Task Force 
     shall serve without compensation.
       (b) Travel Expenses.--A member of the Task Force shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the Task 
     Force.
       (c) Detail of Federal Government Employees.--
       (1) In general.--An employee of the Federal Government may 
     be detailed to the Task Force without reimbursement.
       (2) Civil service status.--The detail of the employee shall 
     be without interruption or loss of civil service status or 
     privilege.
       (d) Procurement of Temporary and Intermittent Services.--
     The Chairperson of the Task Force may procure temporary and 
     intermittent services in accordance with section 3109(b) of 
     title 5, United States Code, at rates for individuals that do 
     not exceed the daily equivalent of the annual rate of basic 
     pay prescribed for level V of the Executive Schedule under 
     section 5316 of that title.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this Act, to remain available until 
     expended.

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     SEC. 9. TERMINATION OF TASK FORCE.

       The Task Force shall terminate 120 days after the date on 
     which the Task Force submits the report of the Task Force 
     under section 5(c).

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