[House Report 104-764]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-764
_______________________________________________________________________


 
         LAND EXCHANGE, WENATACHEE NATIONAL FOREST, WASHINGTON
                                _______
                                

 September 4, 1996.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

_______________________________________________________________________


  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2518]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(H.R. 2518) to authorize the Secretary of Agriculture to 
exchange certain lands in the Wenatachee National Forest, 
Washington, for certain lands owned by Public Utility District 
No. 1 of Chelan County, Washington, and for other purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.
    The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. LAND EXCHANGE.

  (a) Exchange.--Subject to subsection (c), the Secretary of 
Agriculture (referred to in this section as the ``Secretary'') shall 
convey all right, title, and interest of the United States in and to 
the National Forest System lands described in subsection (b)(1) to 
Public Utility District No. 1 of Chelan County, Washington (referred to 
in this section as the ``Public Utility District''), in exchange for 
the conveyance to the Department of Agriculture by the Public Utility 
District of all right, title, and interest of the Public Utility 
District in and to the lands described in subsection (b)(2).
  (b) Descriptions of Lands.--
          (1) National forest system lands.--The National Forest System 
        lands referred to in subsection (a) are 122 acres, more or 
        less, that are partially occupied by a wastewater treatment 
        facility referred to in subsection (c)(4)(A) with the following 
        legal description:
                  (A) The NE\1/4\ of SW\1/4\ of section 27 of township 
                27 north, range 17 east, Willamette Meridian, Chelan 
                County, Washington.
                  (B) The N\1/2\ of SE\1/4\ of SW\1/4\ of such section 
                27.
                  (C) The W\1/2\ of NW\1/4\ of SE\1/4\ of such section 
                27.
                  (D) The NW\1/4\ of SW\1/4\ of SE\1/4\ of such section 
                27.
                  (E) The E\1/2\ of NW\1/4\ of the SE\1/4\ of such 
                section 27.
                  (F) That portion of the S\1/2\ of SE\1/4\ of SW\1/4\ 
                lying north of the northerly edge of Highway 209 right-
                of-way of such section 27.
          (2) Public utility district lands.--The lands owned by the 
        Public Utility District are 109.15 acres, more or less, with 
        the following legal description:
                  (A) S\1/2\ of SW\1/4\ of section 35 of township 26 
                north, range 17 east, Willamette Meridian, Chelan 
                County, Washington.
                  (B) The area specified by Public Utility District No. 
                1 as Government Lot 5 in such section 35.
  (c) Requirements for Exchange.--
          (1) Title acceptance and conveyance.--Upon offer by the 
        Public Utility District of all right, title, and interest in 
        and to the lands described in subsection (b)(2), if the title 
        is found acceptable by the Secretary, the Secretary shall 
        accept title to such lands and interests therein and shall 
        convey to the Public Utility District all right, title, and 
        interest of the United States in and to the lands described in 
        subsection (b)(1).
          (2) Appraisals required.--Before making an exchange pursuant 
        to subsection (a), the Secretary shall conduct appraisals of 
        the lands that are subject to the exchange to determine the 
        fair market value of the lands. Such appraisals shall not 
        include the value of the wastewater treatment facility referred 
        to in paragraph (4)(A).
          (3) Additional consideration.--If, on the basis of the 
        appraisals made under paragraph (1), the Secretary determines 
        that the fair market value of the lands to be conveyed by one 
        party under subsection (a) is less than the fair market value 
        of the lands to be conveyed by the other party under subsection 
        (a), then, as a condition of making the exchange under 
        subsection (a), the party conveying the lands with the lesser 
        value shall pay the other party the amount by which the fair 
        market value of the lands of greater value exceeds the fair 
        market value of the lands of lesser value.
          (4) Conveyance of wastewater treatment facility.--(A) As part 
        of an exchange made under subsection (a), the Secretary shall 
        convey to the Public Utility District of Chelan County, 
        Washington, all right, title, and interest of the United States 
        in and to the wastewater treatment facility (including the 
        wastewater treatment plant and associated lagoons) located on 
        the lands described in subsection (b)(1) that is in existence 
        on the date of the exchange.
          (B) As a condition for the exchange under subsection (a), the 
        Public Utility District shall provide for a credit equal to the 
        fair market value of the wastewater treatment facility conveyed 
        pursuant to subparagraph (A) (determined as of November 4, 
        1991), that shall be applied to the United States' share of any 
        new or modified wastewater treatment facilities constructed by 
        the Public Utility District after November 4, 1991.
  (d) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the exchange under 
this section as the Secretary determines appropriate to protect the 
interests of the United States.

                          PURPOSE OF THE BILL

    The purpose of H.R. 2518 is to authorize the Secretary of 
Agriculture to exchange certain lands in the Wenatchee National 
Forest, Washington, for certain lands owned by Public Utility 
District No. 1 of Chelan County, Washington.

                  BACKGROUND AND NEED FOR LEGISLATION

    H.R. 2518 provides for the transfer of 122 acres of 
National Forest System lands and a sewage treatment plant to 
the Public Utility District No. 1 (PUD) of Chelan County in 
exchange for 109 acres of unencumbered land owned by the PUD on 
the Wenatchee River. The PUD property is surrounded on three 
sides by national forest and is located on an anadromous fish 
stream which is also a proposed wild and scenic river.
    The sewage treatment plant was built 20 years ago by the 
PUD under a permit from the Wenatchee National Forest for the 
treatment of sewage from the Lake Wenatchee Ranger Station and 
a Forest Service campground. In recent years, due to the 
failure of a septic tank and associated drain field systems of 
several local businesses and private residences, the Forest 
Service agreed to explore options for expanding the use of the 
agency's sewage treatment plant. For the short term, one local 
business has been allowed to connect to the treatment plant and 
agreed to pay its fair share of the treatment cost. To provide 
a long term solution, the PUD agreed to provide wastewater 
treatment services in the Lake Wenatchee area. The most logical 
way to achieve this is for the PUD to take over the existing 
Forest Service plant and enlarge and modernize it.
    Ninety acres of the Forest Service's parcel was appraised 
at $417,000, and the sewage treatment facility was appraised at 
an additional $370,000 in 1993. The 109 acres owned by the PUD 
was appraised at $622,000. The Forest Service would also 
receive the right to use the new facilities. Based on the 1993 
appraisal, the Forest Service would have to pay $205,000 to 
equalize values and an additional $60,000 to complete the ``buy 
in'' of the updated facilities. This legislation requires the 
Secretary of Agriculture to conduct an appraisal to determine 
the current fair market value of the lands and requires payment 
needed to equalize any difference in land value.

                            COMMITTEE ACTION

    H.R. 2518 was introduced on October 20, 1995, by 
Congressman Richard ``Doc'' Hastings (R-WA). The bill was 
referred to the Committee on Resources, and within the 
Committee to the Subcommittee on National Parks, Forests and 
Lands. On June 6, 1996, the Subcommittee held a hearing on H.R. 
2518, where the Administration supported H.R. 2518 but 
recommended a technical correction. On June 27, 1996, the 
Subcommittee met to mark up H.R. 2518. An amendment to increase 
the acreage of the Forest Service parcel to be exchanged from 
90 to 122 acres was offered by Congressman James V. Hansen (R-
UT), and adopted by voice vote. The bill was then ordered 
favorably reported to the Full Committee. On July 17, 1996, the 
Full Resources Committee met to consider H.R. 2518. A technical 
amendment to clarify how credits received by the Federal 
Government would be applied for any new or modified wastewater 
treatment facilities was offered by Congressman Hastings, and 
adopted by voice vote. The bill as amended was then ordered 
favorably reported to the House of Representatives by voice 
vote in the presence of a quorum.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Land exchange

    This section provides for the transfer of 122 acres of 
National Forest System lands and a sewage treatment plant to 
the Public Utility District No. 1 (PUD) of Chelan County in 
exchange for 109 acres of unencumbered land owned by the PUD on 
the Wenatchee River. It requires the Secretary of Agriculture 
to conduct an appraisal to determine the current fair market 
value of the lands and requires payment needed to equalize any 
difference in land value.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    With respect to the requirements of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives, and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee on Resources' oversight findings and 
recommendations are reflected in the body of this report.

                     INFLATIONARY IMPACT STATEMENT

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee estimates that the 
enactment of H.R. 2518 will have no significant inflationary 
impact on prices and costs in the operation of the national 
economy.

                        COST OF THE LEGISLATION

    Clause 7(a) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 2518. However, clause 7(d) of that Rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                     COMPLIANCE WITH HOUSE RULE XI

    1. With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, H.R. 
2518 does not contain any new budget authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures. If enacted, H.R. 2518 would require the Secretary 
of Agriculture to pay PUD approximately $225,000 to equalize 
the value of the lands exchanged under this bill. In addition, 
the bill would reduce discretionary spending by approximately 
$370,000 by providing a credit for the Department of 
Agriculture.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 2518.
    3. With respect to the requirement of clause 2(l)(3)(C) of 
rule XI of the Rules of the House of Representatives and 
section 403 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
2518 from the Director of the Congressional Budget Office.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 23, 1996.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed H.R. 2518, a bill to authorize the Secretary of 
Agriculture to exchange certain lands in the Wenatchee National 
Forest, Washington, for certain lands owned by Public Utility 
District No. 1 of Chelan County, Washington, and for other 
purposes. The bill was ordered reported by the House Committee 
on Resources on July 17, 1996. Enacting H.R. 2518 could 
increase direct spending; therefore, pay-as-you-go procedures 
would apply to the bill. CBO estimates that the change in 
direct spending would total less than $500,000. Enacting the 
bill also could lead to a net reduction in discretionary 
spending, but we estimate that such a change would also total 
less than $500,000.
    H.R. 2518 would authorize a land and property exchange, 
subject to certain conditions, between the Department of 
Agriculture and Public Utility District No. 1 (PUD) of Chelan 
County, Washington. The bill provides that if the PUD offers to 
convey about 109 acres to the department, then the Secretary of 
Agriculture would be directed to convey to the PUD about 122 
acres of National Forest System lands, some of which are 
partially occupied by a wastewater treatment facility. The bill 
also would direct the Secretary to convey ownership of the 
wastewater treatment facility to the PUD as part of the 
exchange. The land exchanges are to be of equal fair market 
value, excluding the value of the wastewater treatment 
facility, and the bill would require cash equalization payments 
if the values are unequal. Based on information from the U.S. 
Forest Service, we estimate that completing the exchange would 
require the Forest Service to pay the PUD about $225,000 to 
equalize the exchange values. Therefore, we estimate that 
enacting the bill could increase spending, but that any such 
change would total less than $500,000.
    As a condition for the land exchange and the conveyance of 
the wastewater treatment facility, the bill provides that the 
PUD give the Secretary a credit equal to the fair market value 
of the wastewater treatment facility as of November 4, 1991. 
According to the Forest Service, the wastewater treatment 
facility was valued at about $370,000 as of that date (when the 
agency permitted the PUD to take over operation of the 
federally-owned facility). The PUD has since modernized the 
facility. The credit would be applied to the United States' 
share of the costs to use the wastewater treatment facility. 
Therefore, if the PUD agreed to the exchanges specified in the 
bill, the Forest Service would be able to use a credit of about 
$370,000 towards its expected hook-up charges, thereby reducing 
discretionary spending by that amount.
    H.R. 2518 contains no private-sector or intergovernmental 
mandates as defined in the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4) and would impose no costs on state, local or 
tribal, governments. The exchange authorized by this bill would 
be voluntary on the part of the public utility district.
    If you wish further details on this estimate, we will be 
pleased to provide them. The staff contacts are Victoria V. 
Heid (for federal costs), and Majorie Miller (for the state, 
local, and tribal impact).
            Sincerely,
                                         June E. O'Neill, Director.

                    compliance with public law 104-4

    H.R. 2518 contains no unfunded mandates.

                        changes in existing law

    If enacted, H.R. 2518 would make no changes in existing 
law.