[House Report 104-840]
[From the U.S. Government Publishing Office]



104th Congress                                            Rept. 104-840
                        HOUSE OF REPRESENTATIVES

 2d Session                                                      Part 1
_______________________________________________________________________


 
       GLACIER BAY NATIONAL PARK BOUNDARY ADJUSTMENT ACT OF 1996

                                _______
                                

               September 25, 1996.--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. 2561]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 2561) to provide for an exchange of lands located near 
Gustavus, Alaska, 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. SHORT TITLE.

  This Act may be cited as the ``Glacier Bay National Park Boundary 
Adjustment Act of 1996''.

SEC. 2. LAND EXCHANGE AND WILDERNESS DESIGNATION.

  (a) In General.--(1) Subject to conditions set forth in subsection 
(c), if the State of Alaska, in a manner consistent with this Act, 
offers to transfer to the United States the lands identified in 
paragraph (2) in exchange for the lands identified in paragraph (3), 
the Secretary of the Interior (hereinafter referred to in this Act as 
the ``Secretary'') shall complete such exchange no later than 6 months, 
absent extraordinary circumstances, after the issuance of a license to 
Gustavus Electric Company by the Federal Energy Regulatory Commission 
(FERC), in accordance with section 4 of this Act. This land exchange 
shall be subject to the laws applicable to exchanges involving lands 
managed by the Secretary as part of the National Park System in Alaska.
  (2) The lands to be conveyed to the United States by the State of 
Alaska shall be determined by mutual agreement of the Secretary and the 
State of Alaska. Lands to be considered for conveyance to the United 
States are: (A) conveyed or approved Native allotments in Glacier Bay 
that would be included in a 3-way exchange among the United States, 
State of Alaska, and individual allotment owners; (B) lands owned by 
the State of Alaska in the Chilkoot Trail Unit of Klondike Gold Rush 
National Historical Park; and (C) other lands owned by the State of 
Alaska in or adjacent to a National Park System Unit in Alaska.
  (3) The lands to be conveyed to the State of Alaska by the United 
States are those lands to be designated by the Secretary and the State 
of Alaska, consistent with sound land management principles, based on 
those lands determined by FERC, in accordance with section 3(b), to be 
the minimum amount of land necessary for the construction and operation 
of a hydroelectric project pursuant to 18 CFR Part 4.
  (b) Wilderness.--To ensure that this transaction maintains the same 
amount of area of designated wilderness as currently exists, the 
following lands and waters in Alaska shall be designated as wilderness 
in the priority listed, pursuant to the Wilderness Act (16 U.S.C. 1131-
1136), upon consummation of the land exchange authorized by this Act:
          (1) The conveyed or approved Native allotments in Glacier Bay 
        that are included in the 3-way land exchange among the United 
        States, State of Alaska, and individual allotment owners, if 
        such exchange occurs pursuant to subsection (a)(2).
          (2) An unnamed island in Glacier Bay National Park lying 
        southeasterly of Blue Mouse Cove in section 5, 6, 7, and 8, T. 
        36 S., R. 54 E., CRM, and shown on USGS quadrangle Mt. 
        Fairweather (D-2), Alaska, containing approximately 789 acres.
          (3) Cenotaph Island of Glacier Bay National Park lying within 
        Lituya Bay in section 23, 24, 25, and 26, T. 37 S., R 47 E., 
        CRM, and shown on USGS quadrangle Mt. Fairweather (C-5), 
        Alaska, containing approximately 280 acres.
The specific boundaries and acreage of these wilderness designations 
will be reasonably adjusted to equal, in sum, the total wilderness 
acreage deleted from Glacier Bay National Park and Preserve pursuant to 
the land exchange authorized by this Act.
  (c) Conditions.--Any exchange of lands pursuant to this Act shall 
occur only if--
          (1) following the submission of an acceptable license 
        application, FERC has conducted economic and environmental 
        analyses under the authority of the Federal Power Act (FPA) (16 
        U.S.C. 791-828) notwithstanding provisions of the Code of 
        Federal Regulations or such Act that might otherwise exempt a 
        project of this type from economic analyses; the National 
        Environmental Policy Act (NEPA) (16 U.S.C. 4321-4370), and the 
        Fish and Wildlife Coordination Act (FWCA) (16 U.S.C. 661-666); 
        which analyses conclude that the construction and operation of 
        a hydroelectric power project on the lands described in section 
        3(b)--
                  (A) will not adversely impact the purposes and values 
                of Glacier Bay National Park and Preserve (as 
                constituted after the consummation of the land exchange 
                references in this section); and
                  (B) will comply with the requirements of the National 
                Historic Preservation Act (NHPA) (16 U.S.C. 470-470w); 
                and
                  (C) can be accomplished in an economically feasible 
                manner;
          (2) FERC held at least one public meeting in Gustavus, 
        Alaska, allowing the citizens of Gustavus to express their 
        views on the proposed project;
          (3) FERC has determined the minimum amount of land necessary 
        to construct and operate this hydroelectric power project;
          (4) Gustavus Electric Company, has been granted a license by 
        FERC that requires, inter alia, the licensee to submit an 
        acceptable financing plan to FERC before project construction 
        may commence, and FERC has approved such plan; and
          (5) language has been placed in the deed relating to the land 
        referernces in section 2(a)(3) that ensures that in the event 
        the project is not built, or ceases operation, this land will 
        be managed in a manner compatible with the values and purposes 
        of Glacier Bay National Park and Preserve.

SEC. 3. ROLE OF FERC.

  (a) License Application.--(1) The FERC licensing process shall apply 
to any application submitted by Gustavus Electric Company to FERC for 
the right to construct and operate a hydropower project on the lands 
referenced in subsection (b).
  (2) The FERC is authorized to accept and consider an application if 
filed by Gustavus Electric Company for the construction and operation 
of a hydropower plant to be located on lands within the area described 
in subsecton (b), notwithstanding section 3(2) of the Federal Power Act 
(16 U.S.C. 796(2)). Such application must be submitted within 3 years 
from the date of enactment of this Act.
  (b) Environmental and Economic Analyses.--(1) The lands to be the 
subject of the analyses referenced in section 2(c) are described as 
follows:
                         copper river meridian
  Township 39 South, Range 59 East, partially surveyed, Section 36 
(unsurveyed), SE\1/4\SW\1/4\, S\1/2\SW\1/4\SW\1/4\, NE\1/4\SW\1/4\, 
W\1/2\W\1/2\NW\1/4\SE\1/4\, and S\1/2\SE\1/4\NW\1/4\. Containing 
approximately 130 acres.
  Township 40 South, Range 59 East, partially surveyed, Section 1 
(unsurveyed), NW\1/4\, SW\1/4\, W\1/2\SE\1/4\, and SW\1/4\SW\1/4\NE\1/
4\, excluding U.S. Survey 944 and native allotment A-442; Section 2 
(unsurveyed), fractional, that portion lying above the mean high tide 
line of Icy Passage, excluding U.S. Survey 944 and U.S. Survey 945; 
Section 11 (unsurveyed), fractional, that portion lying above the mean 
high tide line of Icy Passage, excluding U.S. Survey 944; Section 12 
(unsurveyed), fractional, NW\1/4\NE\1/4\, W\1/2\NW\1/4\SW\1/4\NE\1/4\, 
and those portions of NW\1/4\ and SW\1/4\ lying above the mean high 
tide line of Icy Passage, excluding U.S. Survey 944 and native 
allotment A-442. Containing approximately 930 acres. Aggregating 
approximately 960 acres.
  (2) Additional lands and acreage will be included as needed in the 
study area described in subsection (b)(1) to account for accretion to 
these lands from natural forces.
  (3) In consultation with the Secretary and the State of Alaska, FERC 
shall determine the minimum amount of lands necessary for the 
construction and operation of such project.
  (4) The National Park Service shall participate as a joint lead 
agency in the development of any environmental document under the 
National Environmental Policy Act in the licensing of such a project. 
Such environmental document shall consider both the impacts resulting 
from licensing and any land exchange necessary to authorize such 
project.
  (c) Issuance of License.--(1) A condition of the license to construct 
and operate any portion of the hydroelectric power project shall be the 
FERC's approval, prior to any commencement of construction, of a 
finance plan submitted by Gustavus Electric Company.
  (2) The National Park Service, as the existing supervisor of 
potential project lands ultimately to be deleted from the Federal 
reservation in accordance with this Act, waives its right to impose 
mandatory conditions on such project lands pursuant to 16 U.S.C. 797(e) 
of the Federal Power Act.
  (3) A condition of the license, or any succeeding license, to 
construct and operate any portion of the hydroelectric power project 
shall require the licensee to mitigate any adverse effects of the 
project on the purposes and values of Glacier Bay National Park and 
Preserve identified by the Secretary after the initial licensing. 
Additionally, the FERC shall not relicense the project unless it 
determines, with the Secretary's concurrence, that the project will not 
adversely impact the purposes and values of Glacier Bay National Park 
and Preserve (as constituted at the time of relicensing).

SEC. 4. ROLE OF SECRETARY OF THE INTERIOR.

  (a) Special Use Permit.--Notwithstanding the provisions of the 
Wilderness Act (16 U.S.C. 1133), the Secretary shall issue a Special 
Use Permit to Gustavus Electric Company to ensure the completion of the 
analyses referred to in section 3 and to undertake activities that are 
necessary to complete this task. The Secretary may impose conditions in 
the permit as needed to protect the resources and values of Glacier Bay 
National Park and Preserve.
  (b) Park System.--The lands acquired from the State of Alaska under 
this Act shall be added to and administered as part of the National 
Park System, subject to valid existing rights. Upon completion of the 
exchange of lands under this Act, the Secretary shall adjust, as 
necessary, the boundaries of the affected National Park System unit in 
Alaska to include the lands acquired from the State of Alaska; and 
adjust the boundary of Glacier Bay National Park and Preserve to 
exclude the lands transferred to the State of Alaska under this 
section.
  (c) Boundaries.--The Secretary shall make any necessary modifications 
or adjustments of boundaries of wilderness areas as a result of the 
additions and deletions caused by the land exchange referenced in 
section 2.
  (d) Payments.--Gustavus Electric Company shall not be required to 
make Federal land use payments under section 10(e) of the Federal Power 
Act (16 U.S.C. 803(e)).

                          PURPOSE OF THE BILL

    The purpose of H.R. 2561 is to provide for an exchange of 
lands located near Gustavus, Alaska.

                  BACKGROUND AND NEED FOR LEGISLATION

    This bill would facilitate a land exchange between the 
State of Alaska and the National Park Service to facilitate the 
construction of a hydroelectric project on Fall Creek just 
outside the City of Gustavus, Alaska.
    The City of Gustavus has worked tirelessly for the past 20 
years to improve the local environment and to bring about 
savings to the community. The community desires to construct on 
Fall Creek an 800 kilowatt ``run of the stream'' mini 
hydroelectric project. The project would be used during peak 
flow periods to produce electricity as an alternative to 
current diesel production which presents air quality concerns 
and is much more expensive. This hydroelectric project has the 
support of the local community, the Alaska legislature and the 
Governor of the State of Alaska.
    The project is forecast to cost $2 million and would be 
financed with private funds. The project would save the 
National Park Service in excess of $2 million from cost 
avoidance of electrical upgrades and about $250,000 per year in 
reduced costs by relying on hydropower for most of the year. 
Similarly, Power Cost Equalization subsidies from the State of 
Alaska would be reduced by approximately $250,000 a year.
    Federal law prohibits the construction of hydroelectric 
projects within wilderness areas such as the Glacier Bay 
National Park and Preserve where the proposed hydroelectric 
project would be located. As introduced, H.R. 2561 would have 
provided for an acre-for-acre land exchange that will allow the 
project to be constructed: 960 acres of wilderness would be 
withdrawn from the Glacier Bay National Park and Preserve in 
exchange for 960 acres in the Dude Creek Critical Habitat area 
now managed by the State of Alaska. This would be a no net loss 
of park lands exchange. The Administration was opposed to the 
bill as introduced but supports the bill as reported.

                            COMMITTEE ACTION

    H.R. 2561 was introduced on October 31, 1995, by 
Congressman Don Young (R-AK). The bill was referred to the 
Committee on Resources, which held a hearing on the bill on 
November 11, 1995. On September 18, 1996, the Committee met to 
consider H.R. 2561. Congressman Young offered an amendment in 
the nature of a substitute. The amendment was adopted by voice 
vote, and the bill, as amended, was ordered favorably reported 
to the House of Representatives by voice vote.

            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. 2561 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. 2561. 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. 
2561 does not contain any new budget authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures.
    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. 2561.
    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. 
2561 from the Director of the Congressional Budget Office.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 20, 1996.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed H.R. 2561, the Glacier Bay National Park Boundary 
Adjustment Act of 1996, as ordered reported by the House 
Committee on Resources on September 18, 1996. Enacting H.R. 
2561 could affect direct spending; therefore, pay-as-you-go 
procedures would apply to the bill. However, CBO estimates that 
enacting the bill would have no significant effect on direct 
spending. We estimate that implementing the bill would increase 
discretionary spending, but that the increase would total less 
than $50,000 over the 1997-2002 period, assuming appropriation 
of the necessary amounts.
    H.R. 2561 would direct the Secretary of the Interior to 
convey sufficient federal land to the state of Alaska to allow 
the Gustavus Electric Company to construct and operate a 
hydroelectric power project. In return, the state of Alaska 
would convey land from the areas specified by the bill. The 
bill specifies that the lands acquired from Alaska be added to 
and administered as part of the Glacier Bay National Park and 
Preserve. The bill also would direct the Secretary to adjust 
the boundaries of the park to reflect the land exchange. The 
land to be exchanged would be determined based on a study by 
the Federal Energy Regulatory Commission (FERC) of the minimum 
amount of land necessary to construct the hydroelectric power 
project. Based on information from the National Park Service 
and the Bureau of Land Management, CBO estimates that conveying 
the federal land identified for potential exchange with Alaska 
would not result in any loss of receipts to the U.S. Treasury.
    Based on information from the National Park Service, we 
estimate that conducting the conveyances and adjusting the park 
boundaries would cost the National Park Service less than 
$50,000, assuming appropriation of the necessary amounts. Any 
increase in annual costs to FERC for performing studies 
required by the bill or issuing a new hydroelectric license 
would be offset by annual fees the agency is required to charge 
the industries it regulates. Since FERC is required, under 
current law, to collect fees so as to offset the full amount of 
its annual appropriation, any additional work performed by the 
agency as a result of enacting this bill would have no net 
budgetary impact.
    This bill would impose 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 state of Alaska 
currently pays subsidies to individuals in the community of 
Gustavus to reduce their electric power cost. Should the land 
exchange authorized by this bill lead to the construction and 
operation of a hydroelectric power project, these costs would 
be reduced and the payments by the state would decrease.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Kim Cawley, 
Deborah Reis, and Victoria V. Heid (for federal costs), and 
Marjorie Miller (for the state and local impact).
            Sincerely,
                                         June E. O'Neill, Director.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    H.R. 2561 contains no unfunded mandates.

                        CHANGES IN EXISTING LAW

    If enacted, H.R. 2561 would make no changes in existing 
law.