[House Report 105-489]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-489
_______________________________________________________________________


 
LAND EXCHANGE WITH CITY OF GREELEY, COLORADO, AND THE WATER SUPPLY AND 
                            STORAGE COMPANY

                                _______
                                

 April 22, 1998.--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

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 1309]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(H.R. 1309) to provide for an exchange of lands with the city 
of Greeley, Colorado, and The Water Supply and Storage Company 
to eliminate private inholdings in wilderness areas, and for 
other purposes, having considered the same, report favorably 
thereon without amendment and recommend that the bill do pass.

                          PURPOSE OF THE BILL

    The purpose of H.R. 1309 is to provide for an exchange of 
lands with the city of Greeley, Colorado, and the Water Supply 
and Storage Company to eliminate private inholdings in 
wilderness areas, and for other purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    The bill would direct the Secretary of Agriculture to 
exchange certain National Forest System lands in the Arapaho 
and Roosevelt National Forests in Colorado. More specifically, 
the Secretary would convey approximately 1,176 acres of 
national forest lands, currently encumbered by or adjacent to 
existing water storage reservoirs, to the City of Greeley, 
Colorado, and the Water Supply and Storage Company if the City 
and Company offer to convey 708 acres of land, including 42 
acres within and approximately 480 acres adjacent to existing 
wilderness areas in these national forests. The Forest Service 
has cited these land holdings as a primary obstacle which 
prevents expansion of existing wilderness areas in these 
locations. It would adjust the boundaries of these forests to 
encompass the lands conveyed to the United States in the 
exchange.
    The City and the Company operate eight reservoirs in the 
Roosevelt National Forest. The City and the Company provide 
water for both agriculture and municipal users. The reservoirs 
have been operated for many years under land use authorizations 
from the Forest Service. Because of the need for regulatory 
certainty in the exercise of their water rights associated with 
these structures, the City and the Company would like to secure 
fee ownership of the lands under and immediately around the 
reservoirs. The bill conditions the exchange on the City and 
the Company continuing an existing Joint Operations Plan which 
provides for the coordinated release from the reservoirs during 
winter to enhance aquatic habitat.

                            COMMITTEE ACTION

    H.R. 1309 was introduced on April 10, 1997, by Congressman 
Bob Schaffer (R-CO). The bill was referred to the Committee on 
Resources, and within the Committee to the Subcommittee on 
Forests and Forest Health. On July 22, 1997, the Subcommittee 
held a hearing on H.R. 1309, where the Administration testified 
that the proposed exemptions from environmental laws provided 
in the bill outweigh the benefits to the public. On October 7, 
1997, the Subcommittee met to mark up H.R. 1309. No amendments 
were offered and the bill was ordered favorably reported to the 
Full Committee by voice vote. On November 5, 1997, the Full 
Resources Committee met to consider H.R. 1309. No amendments 
were offered and the bill was then ordered favorably reported 
by voice vote to the House of Representatives.

            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, 
theCommittee on Resources' oversight findings and 
recommendations are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 and Article IV, section 3 of the 
Constitution of the United States grant Congress the authority 
to enact H.R. 1309.

                        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. 1309. 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. 
1309 does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in tax 
expenditures. According to the Congressional Budget Office, 
enactment of H.R. 1309 would result in a loss of payments from 
the City of Greeley and the Water Supply and Storage Company 
for its easements to operate the reservoirs. These payments are 
estimated to be $15,000 a year.
    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. 1309.
    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. 
1309 from the Director of the Congressional Budget Office.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, November 12, 1997.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1309, a bill to 
provide for an exchange of lands with the city of Greeley, 
Colorado, and the Water Supply and Storage Company to eliminate 
private inholdings in wilderness areas, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Victoria V. 
Heid.
            Sincerely,
                                              James F. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

H.R. 1309--A bill to provide for an exchange of lands with the city of 
        Greeley, Colorado, and the Water Supply and Storage Company to 
        eliminate private inholdings in wilderness areas, and for other 
        purposes

    CBO estimates that enacting this bill would have no 
significant impact on the federal budget. Because H.R. 1309 
would affect direct spending, pay-as-you-go procedures would 
apply; however, CBO estimates that such effects would total 
less than $15,000 per year. H.R. 1309 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act of 1995 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 city and the 
company.
    H.R. 1309 provides that if the city of Greeley, Colorado, 
and the Water Supply and Storage Company offer to transfer 
their interest in 708 acres of land described in the bill to 
the United States, then within one year the Secretary of 
Agriculture would convey to the city and company in exchange 
1,176 acres of federal land, including eight reservoirs. The 
city and company now occupy 447 acres of that federal land to 
operate the reservoirs under perpetual easements. Once the 
exchange is completed, H.R. 1309 would rescind all special use 
permits and easements on the federal land conveyed to the city 
and company. Land acquired by the United States in the exchange 
would be added to the Roosevelt National Forest.
    Under current law, the city and company are making annual 
payments over a 50-year period for the perpetual easements. By 
rescinding the easements, enacting H.R. 1309 would result in a 
loss of those receipts. Based on information from the Forest 
Service, CBO estimates the loss would total less than $15,000 
per year.
    The CBO staff contact for this estimate is Victoria V. 
Heid. This estimate was approved by Paul N. Van de Water, 
Assistant Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    H.R. 1309 contains no unfunded mandates.

                        CHANGES IN EXISTING LAW

    If enacted, H.R. 1309 would make no changes in existing 
law.

                            DISSENTING VIEWS

    I am opposed to H.R. 1309 because the legislation would 
undermine the management of important national forest lands and 
resources.
    H.R. 1309 directs the Secretary of Agriculture to exchange 
approximately 1,176 acres of national forest land currently 
under permit or easement as reservoir sites to the City of 
Greeley, Colorado and The Water Supply and Storage Company, for 
708 acres of lands within the adjacent to the Arapaho/Roosevelt 
National Forest that are owned by the city and the company.
    Both this bill and the underlying land exchange are 
controversial because they would eliminate the Forest Service's 
authority to require the city and water company to provide at 
least minimal instream flows in the streams and rivers that 
flow through Federal lands below the reservoirs. In order to 
prevent the dewatering of streams, protect fish and wildlife 
habitats, and follow other requirements of Federal law, the 
Forest Service is currently taking steps to rewrite expiring 
special use permits to require that those operating dams and 
diversions on national forest lands provide at least minimal 
instream flows--``bypass flows''--in the streams and rivers 
below the reservoirs they manage. The Forest Service's actions 
have proven unpopular with the city and water company who would 
like to retain complete control of the water at the expense of 
the National Forest and its resources.
    The Administration and others oppose H.R. 1309 because the 
bill would prematurely undercut efforts to find a mutually 
agreeable solution to the issue of instream flows. They are 
also concerned about the impacts the bill would have on fish 
and other National Forest resources.
    In testimony on H.R. 1309, the Forest Service stated that 
the bill ``would provide inadequate protection to downstream 
resources, including National Forest Systems lands and 
federally-protected threatened and endangered species.'' The 
bill would also release the reservoir operators from interim 
ESA recovery responsibilities; prohibit any additional 
conditions, consultations or mitigation measures that might be 
required for completion of the exchange; and waive further 
inventory and consultation under the Historic Preservation Act. 
I am especially troubled by the release of the reservoir 
operators from their responsibility under current law. If such 
action were to be permitted, it would unfairly increase the 
obligations of other entities and individuals to see that 
environmental laws are followed in this area.
    Given the scope of problems with this bill, I believe any 
action by the House on H.R. 1309 is unwise and unwarranted. I 
must oppose this bill and urge my colleagues to do likewise.

                                                   Maurice Hinchey.