[Senate Report 104-183]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 263
104th Congress                                                   Report
                                 SENATE

 1st Session                                                    104-183
_______________________________________________________________________


 
            SKI AREA PERMITS ON NATIONAL FOREST SYSTEM LANDS

                                _______


                December 8, 1995.--Ordered to be printed

_______________________________________________________________________


  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 907]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 907) to amend the National Forest Ski 
Area Permit Act of 1986 to clarify the authorities and duties 
of the Secretary of Agriculture in issuing ski area permits on 
National Forest System lands and to withdraw lands within ski 
area permit boundaries from the operation of the mining and 
mineral leasing laws, having considered the same, reports 
favorably thereon with an amendment and an amendment to the 
title and recommends that the bill, as amended, do pass.
    The amendments are as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SKI AREA PERMIT RENTAL CHARGE.

    (a) The Secretary of Agriculture shall charge a rental charge for 
all ski area permits issued pursuant to section 3 of the National 
Forest Ski Area Permit Act of 1986 (16 U.S.C. 497b), the Act of March 
4, 1915 (38 Stat. 1101, chapter 144; 16 U.S.C. 497), or the 9th through 
20th paragraphs under the heading ``SURVEYING THE PUBLIC LANDS'' under 
the heading ``UNDER THE DEPARTMENT OF THE INTERIOR'' in the Act of June 
4, 1897 (30 Stat. 34, chapter 2), on National Forest System lands. 
Permit rental charges for permits issued pursuant to the National 
Forest Ski Area Permit Act of 1986 shall be calculated as set forth in 
subsection (b). Permit rental charges for existing ski area permits 
issued pursuant to the Act of March 4, 1915, and the Act of June 4, 
1897, shall be calculated in accordance with those existing permits: 
Provided, That a permittee may, at the permittee's option, use the 
calculation method set forth in subsection (b).
    (b)(1) The ski area permit rental charge (SAPRC) shall be 
calculated by adding the permittee's gross revenues from lift ticket/
year-round ski area use pass plus revenue from ski school operations 
(LT+SS) and multiplying such total by the slope feet percentage (STFP) 
on National Forest System land. That amount shall be increased by the 
gross year-round revenue from ancillary facilities (GRAF) physically 
located on national forest land, including all permittee or 
subpermittee lodging, food service, rental shops, parking and other 
ancillary operations, to determine the adjusted gross revenue (AGR) 
subject to the permit rental charge. The final rental charge shall be 
calculated by multiplying the AGR by the following percentages for each 
revenue bracket and adding the total for each revenue bracket:
          (A) 1.5 percent of all adjusted gross revenue below 
        $3,000,000;
          (B) 2.5 percent for adjusted gross revenue between $3,000,000 
        and $15,000,000;
          (C) 2.75 percent for adjusted gross revenue between 
        $15,000,000 and $50,000,000; and
          (D) 4.0 percent for the amount of adjusted gross revenue that 
        exceeds $50,000,000.
    Utilizing the abbreviations indicated in this subsection the ski 
area permit fee (SAPF) formula can be simply illustrated as:
    SAPF=((LT+SS)xSTFP)+GRAF=AGR; AGRx% BRACKETS
    (2) In cases where ski areas are only partially located on national 
forest lands, the slope transport feet percentage on national forest 
land referred to in subsection (b) shall be calculated as generally 
described in the Forest Service Manual in effect as of January 1, 1992. 
Revenues from Nordic ski operations shall be included or excluded from 
the rental charge calculation according to the percentage of trails 
physically located on national forest land.
    (3) In order to ensure that the rental charge remains fair and 
equitable to both the United States and ski area permittees, the 
adjusted gross revenue figures for each revenue bracket in paragraph 
(1) shall be adjusted annually by the percent increase or decrease in 
the national Consumer Price Index for the preceding calendar year. No 
later than 5 years after the date of enactment of this Act and every 10 
years thereafter the Secretary shall submit to the Committee on Energy 
and Natural Resources of the United States Senate and the Committee on 
Resources of the United States House of Representatives a report 
analyzing whether the ski area permit rental charge legislated by this 
Act is returning a fair market value rental to the United States 
together with any recommendations the Secretary may have for 
modifications of the system.
    (c) The rental charge set forth in subsection (b) shall be due on 
June 1 of each year and shall be paid or pre-paid by the permittee on a 
monthly, quarterly, annual or other schedule as determined appropriate 
by the Secretary in consultation with the permittee. Unless mutually 
agreed otherwise by the Secretary and the permittee, the payment or 
prepayment schedule shall conform to the permittee's schedule in effect 
prior to enactment of this Act. To reduce costs to the permittee and 
the Forest Service, the Secretary shall each year provide the permittee 
with a standardized form and worksheets (including annual rental charge 
calculation brackets and rates) to be used for rental charge 
calculation and submitted with the rental charge payment. Information 
provided on such forms shall be compiled by the Secretary annually and 
kept in the Office of the Chief, U.S. Forest Service.
    (d) The ski area permit rental charge set forth in this section 
shall become effective on June 1, 1996 and cover receipts retroactive 
to June 1, 1995: Provided, however, That if a permittee has paid rental 
charges for the period June 1, 1995, to June 1, 1996, under the 
graduated rate rental charge system formula in effect prior to the date 
of enactment of this Act, such rental charges shall be credited toward 
the new rental charge due on June 1, 1996. In order to ensure 
increasing rental charge receipt levels to the United States during 
transition from the graduated rate rental charge system formula to the 
formula of this Act, the rental charge paid by any individual permittee 
shall be--
          (1) for the 1995-1996 permit year, either the rental charge 
        paid for the preceding 1994-1995 base year or the rental charge 
        calculated pursuant to this Act, whichever is higher;
          (2) for the 1996-1997 permit year, either the rental charge 
        paid for the 1994-1995 base year or the rental charge 
        calculated pursuant to this Act, whichever is higher;
          (3) for the 1997-1998 permit year, either the rental charge 
        for the 1994-1995 base year or the rental charge calculated 
        pursuant to this Act, whichever is higher.
If an individual permittee's adjusted gross revenue for the 1995-1996, 
1996-1997, or 1997-1998 permit years falls more than 10 percent below 
the 1994-1995 base year, the rental charge paid shall be the rental 
charge calculated pursuant to this Act.
    (e) Under no circumstances shall revenue, or subpermittee revenue 
(other than lift ticket, area use pass, or ski school sales) obtained 
from operations physically located on non-national forest land be 
included in the ski area permit rental charge calculation.
    (f) To reduce administrative costs of ski permittees and the Forest 
Service the terms ``revenue'' and ``sales'', as used in this section, 
shall mean actual income from sales and shall not include sales of 
operating equipment, refunds, rent paid to the permittee by sublessees, 
sponsor contributions to special events or any amounts attributable to 
employee gratuities or employee lift tickets, discounts, or other goods 
or services (except for bartered goods and complimentary lift tickets) 
for which the permittee does not receive money.
    (g) In cases where an area of national forest land is under a ski 
area permit but the permittee does not have revenue or sales qualifying 
for rental charge payment pursuant to subsection (a), the permittee 
shall pay an annual minimum rental charge of $2 for each national 
forest acre under permit or a percentage of appraised land value, as 
determined appropriate by the Secretary.
    (h) Where the new rental charge provided for in subsection (b)(1) 
results in an increase in permit rental charge greater than one half of 
one percent of the permittee's adjusted gross revenue as determined 
under subsection (b)(1), the new rental charge shall be phased in over 
a five year period in a manner providing for increases of approximately 
equal increments.
    (i) To reduce federal costs in administering the provisions of this 
Act, the reissuance of a ski area permit to provide activities similar 
in nature and amount to the activities provided under the previous 
permit shall not constitute a major Federal action for the purposes of 
the National Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.).

SEC. 2. WITHDRAWALS.

    Subject to valid existing rights, all lands located within the 
boundaries of ski area permits issued prior to, on or after the date of 
enactment of this Act pursuant to authority of the Act of March 4, 1915 
(38 Stat. 1101, chapter 144; 16 U.S.C. 497), and the Act of June 4, 
1897, or the National Forest Ski Area Permit Act of 1986 (16 U.S.C. 
497b) are hereby and henceforth automatically withdrawn from all forms 
of appropriation under the mining laws and from disposition under all 
laws pertaining to mineral and geothermal leasing and all amendments 
thereto. Such withdrawal shall continue for the full term of the permit 
and any modification, reissuance, or renewal thereof. Unless the 
Secretary requests otherwise of the Secretary of the Interior, such 
withdrawal shall be canceled automatically upon expiration or other 
termination of the permit and the land automatically restored to all 
appropriation not otherwise restricted under the public land laws.

    Amend the title so as to read:

    A bill to further clarify the authorities and duties of the 
Secretary of Agriculture in issuing ski area permits on National Forest 
System lands and to withdraw lands within ski areas permit boundaries 
from the operation of the mining and mineral leasing laws.

                         purpose of the measure

    The purposes of S. 907 are to establish a Forest Service 
ski area permit rental charge that returns fair value to the 
United States; to provide ski area permittees and the Forest 
Service with a simplified, consistent, and equitable rental 
charge formula; and to withdraw lands within ski area permit 
boundaries from the operation of mining and mineral leasing 
laws.

                          background and need

    Several laws, including the National Forest Ski Area Permit 
Act of 1986, require the Secretary of Agriculture to charge a 
fair market value rental charge for ski area use of National 
Forest lands. Nationwide there are 143 ski areas on or 
partially on National Forest land. In 1995, these areas occupy 
approximately 183,000 acres of National Forest land, for which 
the operators paid approximately $18.7 million on approximately 
2 percent of gross revenues (which were $943 million) in rental 
charges using the Graduated Rate Fee System discussed below.
    The current formula used to determine ski area rental 
charges is contained in the Forest Service Manual and Forest 
Service Handbook as supplemented by interim directives. Its 
Graduated Rate Fee System (GRFS) is encompassed in 40 pages and 
contains hundreds of definitions, rulings, and policies. Under 
GRFS, each ski area: (1) works with the Forest Service to 
define a ``development area boundary'' (a process that has 
become increasingly contentious); (2) calculates actual 
revenues or imputed revenues (gratuities, discounts, 
complimentary tickets, etc.) from revenue sources within that 
boundary; (3) ascertains ``break even categories'' for a 
variety of revenue components; (4) determines gross fixed 
assets for deduction purposes; (5) applies Slope Transport Feet 
Percentage (STFP) deductions (the percentage of an area's 
uphill lift capacity which is located on or off the forest) to 
various revenue components; and then calculates the final 
rental charge.
    Over the 20 years since GRFS' initial application to ski 
areas, both the GRFS system itself and the nature of ski area 
operations have become more complex. In particular, many of the 
larger ski areas have evolved into multi-season resorts, with 
income and activities divided among Forest Service and private 
lands. As a consequence, certain components of the GRFS, which 
originally involved relatively simple accounting of activities 
on National Forest lands, have become burdensome to both ski 
area operators and the Forest Service, Increasingly, auditing 
of the rental charge paid by ski area operators under GRFS has 
become expensive and time-consuming. Furthermore, there is 
considerable regional variation in implementation of rental 
charge policies.
    In recent years, the Forest Service had justified assessing 
rental charges against businesses on private lands on the 
theory that the related businesses would not exist if it were 
not for the ski area permits on the National Forest. The Forest 
Service has also proposed rental charges on ``integrated 
business units'' under a ``principle of contribution.'' Under 
that theory, ski areas would pay rental charges on activities 
on private lands to the extent that the Forest Service ski 
permit contributes to the private land revenue.

                          legislative history

    S. 907 was introduced by Senator Murkowski on June 9, 1995. 
Cosponsors include Senators Leahy, Campbell, Kyl, Brown, Gregg, 
Craig, Domenici, Burns, Jeffords, Thomas, Baucus, Pressler, 
Simpson, Murray, Kempthorne, and Bennett. A hearing was held by 
the Committee on September 15, 1995.
    At the business meeting on November 30, the Committee on 
Energy and Natural Resources ordered S. 907, as amended, 
favorably reported.
    Similar rental charge system legislation was ordered 
reported by the Committee on Energy and Natural Resources, and 
passed the Senate late in the 102nd Congress but did not 
receive consideration in the House.

           committee recommendations and tabulation of votes

    The Committee on Energy and Natural Resources, in open 
business session on November 30, 1995, by a unanimous voice 
vote of a quorum present, recommends that the Senate pass S. 
907, if amended as described herein.

                          committee amendments

    During the consideration of S. 907, the Committee adopted 
an amendment in the nature of a substitute to conform the bill 
language more closely to that as reported by the Committee 
during the consideration of S. 2606 in the 102nd Congress with 
several additional provisions.
    As amended, S. 907 simplifies the rental charge formula by 
bashing it on gross revenue from activities conducted on 
National Forest lands and multiplying the revenue by certain 
percentage brackets. The bill defines and limits gross revenue 
to (1) year-round sales of lift tickets or use passes; (2) 
revenues from ski school operations; and (3) revenue from 
ancillary facilities physically located on National Forest 
lands. (Examples of ancillary facilities are restaurants, 
sundry shops, rental shops, and parking lots. Where such 
activities are sub-leased, the gross revenue of the sublessee 
will be included in the ski area permittee's revenue.) It is 
estimated that these three categories of revenue comprise 
approximately 95% of revenues which are assessed under the 
current GRFS system. The remaining 5% of ``revenues'' included 
under GRFS is deleted from the definition under the new 
formula, but its loss is mitigated by the elimination of 
credits for new investment, administrative cost savings, and 
other provisions.
    As many ski areas are located partially on National Forest 
land and partially on private land, both GRFS and the proposed 
new formula adjust gross revenues by the Slope Transport Feet 
Percentage. Using STFP provides an equitable method to exclude 
private land to determine adjusted gross revenue for applying 
the final rental charge percentage brackets.
    Upon determination of an area's adjusted gross revenue, the 
bill identifies four brackets of revenue and multiples those 
brackets by percentages for each bracket to determine the final 
rental charge. Adjusted gross income below $3 million is 
assessed at 1.5 percent; between $3 million and $15 million at 
2.5 percent; between $15 million and $50 million at 2.75 
percent; and above $50 million at 4 percent. These brackets 
give the new formula its ``progressive'' or ``graduated'' 
nature, under which small areas will, after the system is fully 
implemented, pay relatively less than larger areas.
    To ensure that the government receives higher rental 
payments during the transition from the current fee system, the 
bill includes a payment ``floor'' in the formula. Under the 
floor approach, the rental charge for each individual ski area 
for the first 3 years of the transition will be their the 
rental charge under the new formula, or the actual rental 
charge paid by the area for the year prior to the new formula's 
implementation, whichever amount is higher.
    In reviewing the likely financial impact on individual ski 
areas of converting from GRFS to the new rental charge system, 
it became apparent that approximately 10 permittees would 
experience sharp rental charge increases. To mitigate these 
increases, the amendment adopted by the Committee provides for 
a five-year transition into the new rental charge system for 
those area which would experience an increase greater than one 
half of one percent of their adjusted gross revenue. These 
areas would be able to phase in the new rental charge.
    The bill's formula attempts to ensure that rental charges 
to the United States will increase as gross revenues of ski 
areas increase but that rental charges will not be assessed for 
other revenue-producing activities associated with the ski 
area. Other advantages include: (1) reducing the administrative 
burden for both landlord and permittee; (2) wide use by other 
Federal and State agencies and some commercial landlords; and 
(3) a progressive rental change schedule.
    In addition to the rental charge system provisions, the 
bill includes a provision for withdrawal of lands within 
boundaries of ski area permits from all forms of appropriation 
under mining laws and from disposition under all laws 
pertaining to mineral and geothermal leasing for as long as the 
permit is valid. The bill also allows the Forest Service to 
reissue ski area permits to provide activities similar in 
nature and amount to those activities actually provided on the 
ground under the previous permit under a categorical exclusion 
as provided for under the National Environmental Policy Act of 
1969.

                      section-by-section analysis

    Subsection (1)(a) provides that the Secretary of 
Agriculture shall charge ski area permittees for rental of 
Forest Service lands under permit. Permittees with permits 
issued pursuant to the 1986 permit act shall be required to pay 
a rental charge calculated according to the method outlined in 
subsection (b). Permittees with permits issued pursuant to the 
1897 and 1915 Acts are given the option to use the new 
calculation system but otherwise may continue to calculate 
their rental charges in accordance with their existing permits.
    Subsection (b) sets forth the formula under which the ski 
area permit rental charge (SAPRC) for ski areas on or partially 
on National Forests, including Nordic ski areas, shall be 
calculated. It directs annual adjustment of each revenue 
bracket's adjusted gross revenue figures by the percent 
increase or decrease in the Consumer Price Index.
    Subsection (c) provides that the scheduling of rental 
charge payments be on an annual basis, with monthly, quarterly 
or other payments or prepayments to be determined by the Forest 
Service and individual ski areas.
    Subsection (d) provides that the new legislated rental 
charge shall become effective on June 1, 1996 and cover 
receipts retroactive to June 1, 1995. However, if a permittee 
has paid rental charges for the period June 1, 1995, to June 1, 
1996, under the existing graduated rate fee system formula, 
such payments constitutes a credit toward the new rental 
charge. In order to ensure that the United States will receive 
increased rental charge receipts during a 3-year transition 
from the existing graduated rate fee system to the new system, 
the subsection places a floor on each individual ski area's 
payment under which every area will pay either the 1994-1995 
rental charge or the rental charge calculated in accordance 
with subsection (b), whichever is higher.
    Subsection (e) prohibits revenue or subpermittee revenue 
(other than lift ticket, areas use pass, or ski school sales) 
obtained from operations located on non-National Forest land 
from being included in the SAPRC calculation.
    Subsection (f) defines ``revenue'' and ``sales.''
    Subsection (g) provides for, in cases where an area of 
National Forest land is under a ski area permit but the 
permittee does not have revenue or sales qualifying for rental 
charge payment under subsection (a), payment of an annual 
minimum rental fee of $2 per National Forest acre under permit 
or a percentage of appraised land value, as determined by the 
Secretary.
    Subsection (h) directs that new rental charges be phased in 
over a five year period for areas where the new rental charge 
results in an increase greater than one-half of 1 percent of 
the permittee's adjusted gross revenue.
    Subsection (i) states that the reissuance of a ski area 
permit to provide activities similar in nature and amount to 
those activities currently being provided at the ski area does 
not constitute a major Federal action under NEPA.
    Section 2 withdraws lands under a ski area permit from 
appropriation under mining, mineral leasing, and geothermal 
leasing laws for the full term of the permit and its 
modification, reissuance, or renewal. It further provides that, 
unless requested by the Secretary, the withdrawal shall 
terminate automatically upon expiration or termination of the 
permit and the land be available for all uses not otherwise 
restricted under the public land laws.

                   cost and budgetary considerations

    The following estimate of the cost of this measure has been 
provided by the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, December 6, 1995.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources, U.S. Senate, 
        Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 907, a bill to amend 
the National Forest Ski Permit Act of 1986 to clarify the 
authorities and duties of the Secretary of Agriculture in 
issuing ski area permits on National Forest System lands and to 
withdraw lands within ski area permit boundaries from the 
operation of the mining and mineral leasing laws.
    Enacting S. 907 would affect direct spending; therefore, 
pay-as-you-go procedures would apply to the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    1. Bill number: S. 907.
    2. Bill title: A bill to amend the National Forest Ski 
Permit Act of 1986 to clarify the authorities and duties of the 
Secretary of Agriculture in issuing ski area permits on 
National Forest System lands and to withdraw lands within ski 
area permit boundaries from the operation of the mining and 
mineral leasing laws.
    3. Bill status: As ordered reported by the Senate Committee 
on Energy and National Resources on November 30, 1995.
    4. Bill purpose: S. 907 would revise the method of 
assessing rental charges for permits issued to ski areas for 
use of National Forest System lands. The bill also would remove 
all lands located within the boundaries of ski area permits 
from all forms of mining use during the full term of the 
permits.
    5. Estimated cost to the Federal Government: CBO estimates 
that enacting S. 907 would affect direct spending by raising 
additional offsetting receipts from rental charges in fiscal 
years 1996, 1997, and 1998, and by lowering offsetting receipts 
in fiscal year 1999 and thereafter, as shown in the following 
table.

----------------------------------------------------------------------------------------------------------------
                                                              1996       1997       1998       1999       2000  
----------------------------------------------------------------------------------------------------------------
                                            CHANGE IN DIRECT SPENDING                                           
                                                                                                                
Estimated budget authority...............................      (\1\)         -1         -1      (\1\)      (\1\)
Estimated outlays........................................      (\1\)         -1         -1      (\1\)      (\1\)
----------------------------------------------------------------------------------------------------------------
\1\ Less than $500,000.                                                                                         

    In addition, the bill would have a small impact on 
discretionary spending for administering ski permits, but we 
estimate that such change would be less than $500,000 a year.
    The budgetary impact of this bill false within budget 
function 300.
    6. Basis of Estimate: Direct Spending. Enacting S. 907 
would revise the method of assessing rental charges for permits 
issued to ski areas for use of National Forest System lands. 
Rental charges under the proposed system would be assessed 
using a system of four revenue brackets, whereby ski areas with 
large revenues would pay a higher percentage of their revenues 
in rental charges than areas with smaller revenues. The bill 
would establish assessment rates rising from 1.5 percent for 
the first $3 million of an area's revenues to 4 percent for any 
revenues above $50 million. The bill's revenue brackets would 
be adjusted annually for inflation.
    Under current law, permits fees for ski areas on Forest 
Service lands are calculated under the Graduated Rate Fee 
System (GRFS). GRFS calculates fees based on each area's 
revenues and the value of its fixed assets. The proposed rental 
charge system would be based on gross revenues without any 
deductions for asset value, and would apply to all ski areas 
with permits issued pursuant to the National Forest Ski Permit 
Act of 1986. Ski areas with pre-1986 permits could choose 
whether to have their fee calculated using the proposed new 
method or to remain under the current system.
    Depending on their revenues, some ski areas would pay less 
under the proposed new method of calculating rental charges 
then they pay now under GRFS, and some would pay more. To 
ensure that the government receives higher rental payments 
during the transition from the current fee system, the bill 
provides that the rental charge paid by any individual 
permittee for the current and next two permit years shall be 
either the amount charged last year or the rental charge 
calculated under the new fee system, whichever is higher. If a 
permittee's gross revenues fall by more than 10 percent during 
the three transition years, then the rental charge would be 
calculated based on the new calculation method. If the new 
method of calculation would result in a fee increasing by more 
than 0.5 percent of the permittee's adjusted gross revenue, 
then the rental charge increase would be phased in over five 
years.
    CBO assumes that all ski areas with per-1986 permits would 
select the new method of calculating rental charges if their 
rental charge would be lower than under the current system once 
the transition period ends. We also assume that many ski areas 
would choose the new system even if the new charges were 
slightly higher than under the current system because such 
increases would be offset by reduced administrative costs for 
the areas.
    Based on information from the Forest Service and the 
General Accounting Office, we estimate that enacting S. 907 
would result in higher offsetting receipts from rental charges 
during the three-year transition period since the bill 
establishes a floor below which rental charges could not fall. 
Because offsetting receipts appear in the budget as negative 
outlays, the bill would have the effect of decreasing outlays 
in the first three years. Net of the required payments to 
states, we estimate that federal outlays would decrease by less 
than $500,000 in fiscal year 1996 and by about $1 million in 
each of fiscal years 1997 and 1998. Beginning in fiscal year 
1999, the floor for receipt levels would be removed. We 
estimate that receipts from rental charges would decrease 
relating to current law from that point forward, but that the 
resulting increase in outlays would be less than $500,000 per 
year.
    Discretionary Spending. The new system of rental charges 
would be easier for the Forest Service to administer than the 
current GRFS. Hence, it would eventually reduce the need for 
appropriations to the Forest Service for the cost of audits, 
accounting, and fee assessment appeals by ski areas. Based on 
information from the Forest Service, CBO estimates that 
enacting S. 907 would increase administrative costs during the 
first two years--during the transition to the new system--but 
would reduce administrative costs thereafter. CBO estimates 
that any change in administrative costs would be less than 
$500,000 per year.
    The bill's provision for withdrawing ski permit lands from 
mining use would not have any significant effect on federal 
expenditures or receipts.
    7. Pay-as-you-go considerations: Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts through 1998. CBO estimates that enacting 
S. 907 would affect direct spending over the 1996-1998 period 
by increasing offsetting receipts from ski permit fees. 
Therefore, pay-a-you-go procedures would apply to the bill.

------------------------------------------------------------------------
                                            1996       1997       1998  
------------------------------------------------------------------------
Change in outlays......................          0         -1         -1
Change in receipts.....................      (\1\)      (\1\)      (\1\)
------------------------------------------------------------------------
\1\ Not applicable.                                                     

    8. Estimated cost to State and local governments: Changes 
made by S. 907 would affect payments to states with Forest 
Service ski areas within their borders because states receive 
25 percent of receipts from ski permit fees. CBO estimates 
that, in total, states would receive from $100,000 less in each 
fiscal year after 1998. This change would affect 15 states, 
mostly in the West.
    9. Estimate comparison: None.
    10. Previous CBO estimate: None.
    11. Estimate prepared by: Federal Cost Estimate: Victoria 
V. Heid State and Local Government Cost Estimate: Majorie 
Miller.
    12. Estimate approved by: Robert A. Sunshine for Paul N. 
Van de Water, Assistant Director for Budget Analysis.

                      regulatory inpact evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 907. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 907, as ordered reported.

                        executive communications

    The Committee on Energy and Natural Resources has requested 
legislative reports from the Department of Agriculture and the 
Office of Management and Budget setting forth Executive agency 
recommendations on S. 907. These reports had not been received 
at the time the report on S. 907 was filed. When these reports 
become available, the Chairman will request that they be 
printed in the Congressional Record for the advice of the 
Senate.

                        changes in existing law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the Act S. 907, as ordered 
reported.