[House Report 105-527]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-527
_______________________________________________________________________


 
        GRANITE WATERSHED ENHANCEMENT AND PROTECTION ACT OF 1998

                                _______
                                

  May 12, 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

                        [To accompany H.R. 2886]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 2886) to provide for a demonstration project in the 
Stanislaus National Forest, California, under which a private 
contractor will perform multiple resource management activities 
for that unit of the National Forest System, 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 ``Granite Watershed Enhancement and 
Protection Act of 1998''.

SEC. 2. DEMONSTRATION RESOURCE MANAGEMENT PROJECT, STANISLAUS NATIONAL 
                    FOREST, CALIFORNIA, TO ENHANCE AND PROTECT THE 
                    GRANITE WATERSHED.

  (a) Resource Management Contract Authorized.--The Secretary of 
Agriculture may enter into a contract with a single private contractor 
to perform multiple resource management activities on Federal lands 
within the Stanislaus National Forest in the State of California for 
the purpose of demonstrating enhanced ecosystem health and water 
quality, and significantly reducing the risk of catastrophic wildfire, 
in the Granite watershed at a reduced cost to the Government. The 
contract shall be for a term of five years.
  (b) Authorized Management Activities.--The types of resource 
management activities performed under the contract shall include the 
following:
          (1) Reduction of forest fuel loads through the use of 
        precommercial and commercial thinning and prescribed burns.
          (2) Monitoring of ecosystem health and water quality in the 
        Granite watershed.
          (3) Monitoring of the presence of wildlife in the area in 
        which management activities are performed and the effect of the 
        activities on wildlife presence.
          (4) Such other resource management activities as the 
        Secretary considers appropriate to demonstrate enhanced 
        ecosystem health and water quality in the Granite watershed.
  (c) Compliance With Federal Law and Spotted Owl Guidelines.--All 
resource management activities performed under the contract shall be 
performed in a manner consistent with applicable Federal law and the 
standards and guidelines for the conservation of the California spotted 
owl (as set forth in the California Spotted Owl Sierran Province 
Interim Guidelines or the subsequently issued final guidelines, 
whichever is in effect).
  (d) Funding.--
          (1) Sources of funds.--To provide funds for the resource 
        management activities to be performed under the contract, the 
        Secretary may use--
                  (A) funds appropriated to carry out this section;
                  (B) funds specifically provided to the Forest Service 
                to implement projects to demonstrate enhanced water 
                quality and protect aquatic and upland resources;
                  (C) excess funds that are allocated for the 
                administration and management of the Stanislaus 
                National Forest, California;
                  (D) hazardous fuels reduction funds allocated for 
                Region 5 of the Forest Service; and
                  (E) a contract provision allowing the cost of 
                performing authorized management activities described 
                in subsection (b) to be offset by the values owed to 
                the United States for any forest products removed by 
                the contractor.
          (2) Prohibition on use of certain funds.--Except as provided 
        in paragraph (1), the Secretary may not carry out the contract 
        using funds appropriated for any other unit of the National 
        Forest System.
          (3) Conditions on funds transfers.--Any transfer of funds 
        under paragraph (1) may be made only in accordance with the 
        procedures concerning notice to, and review by, the Committee 
        on Appropriations of the House of Representatives and the 
        Committee on Appropriations of the Senate that are applied by 
        the Secretary in the case of a transfer of funds between 
        appropriations.
  (e) Acceptance and Use of State Funds.--The Secretary may accept and 
use funds provided by the State of California to assist in the 
implementation of the contract under this section.
  (f) Reporting Requirements.--Not later than February 28 of each year 
during the term of the contract, the Secretary shall submit to Congress 
a report describing--
          (1) the resource management activities performed under the 
        contract during the period covered by the report;
          (2) the source and amount of funds used under subsection (d) 
        to carry out the contract; and
          (3) the resource management activities to be performed under 
        the contract during the calendar year in which the report is 
        submitted.
  (g) Relationship to Other Laws.--Nothing in this section exempts the 
contract, or resource management activities to be performed under the 
contract, from any Federal environmental law.

                          purpose of the bill

    The purpose of H.R. 2886 is to provide for a demonstration 
project in the Stanislaus National Forest, California, under 
which a private contractor will perform multiple resource 
management activities for that unit of the National Forest 
System.

                  background and need for legislation

    H.R. 2886 authorizes the Secretary of Agriculture to 
conduct a demonstration project on the Stanislaus National 
Forest to accomplish multiple resource objectives aimed at 
reducing fire risk and improving water quality under a single 
contract. The proposed project area is on approximately 8,000 
acres of national forest land located in and around the 1973 
Granite Burn on the Groveland District of the Stanislaus 
National Forest. Legislation is needed to provide the Forest 
Service the contracting authority to develop a multi-services 
contract. The legislation specifies that the project will be 
subject to all applicable environmental rules and standards.

                            committee action

    H.R. 2886 was introduced on November 7, 1997, by 
Congressman John Doolittle (R-CA). The bill was referred to the 
Committee on Resources, and within the Committee to the 
Subcommittee on Forests and Forest Health. On March 24, 1998, 
the Subcommittee held a hearing on H.R. 2886, where the 
Administration testified in support but suggested a technical 
amendment. On April 23, 1998, the Subcommittee met to mark up 
H.R. 2886. Mr. Doolittle offered an amendment in the nature of 
a substitute, incorporating language from the Administration to 
add the authority needed to most efficiently deliver the 
intended program of work and making several technical changes 
requested by local environmental organizations. The amendment 
was adopted by voice vote and the bill was ordered favorably 
reported to the Full Committee by voice vote. On April 29, 
1998, the Committee on Resources met to consider H.R. 2886. No 
further amendments were offered and the bill was ordered 
favorably reported, as amended, 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.

                   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. 2886.

                        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. 2886. 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. 
2886 does not contain any new budget authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures. According to the Congressional Budget Office, 
enactment of H.R. 2886 could increase direct spending by 
approximately $200,000; this will have no significant impact on 
the federal budget.
    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. 2886.
    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. 
2886 from the Director of the Congressional Budget Office.

               congressional budget office cost estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 11, 1998.
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. 2886, the Granite 
Watershed Enhancement and Protection Act of 1998.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Victoria V. 
Heid (for federal costs), and Marjorie Miller (for the state 
and local impact).
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

H.R. 2886--Granite Watershed Enhancement and Protection Act of 1998

    CBO estimates that enacting H.R. 2886 would have no 
significant impact on the federal budget. Because the bill 
would increase direct spending, pay-as-you-go procedures would 
apply, but we estimate the increase would total only about 
$200,000. This bill would impose 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 state of California and local 
governments in the state might choose to share in the cost of 
this project, but their involvement would be voluntary.
    H.R. 2886 would authorize the Secretary of Agriculture to 
enter into a five-year contract with a single private 
contractor to perform multiple management activities on federal 
land in the Stanislaus National Forest in California and to 
fund that contract using receipts from forest products removed 
by the contractor, as well as funds provided by the state of 
California and appropriated funds.
    The U.S. Forest Service is planning to conduct the Granite 
Watershed Pilot Project on an area known as the Granite Burn 
over the next five years. Work to be performed under the 
contract will include timber stand thinning, brush removal, 
road closures and maintenance, and other land management work. 
According to the Forest Service, outlays to implement the 
project will total about $5 million over the 1999-2003 period. 
The agency plans to conduct the project, including the timber 
stand thinning, under current law using appropriated funds. 
(The agency has applied for a grant from the CALFED Bay-Delta 
Program, a consortium of federal and state agencies, to 
partially fund the project, but that grant may or may not be 
awarded.)
    Enacting H.R. 2886 would allow the agency to pay for a 
portion of the project using offsetting receipts generated from 
the projects timber stand thinning. The Forest Service expects 
the thinning to generate offsetting receipts of approximately 
$200,000 in fiscal year 1999. Based on information from the 
Forest Service, CBO estimates that enacting the bill would 
increase direct spending outlays by $200,000 in fiscal year 
1999. Because the bill would allow the Forest Service to use 
the receipts to pay for the project, enacting the bill could 
either decrease discretionary outlays by about $200,000 or 
allow the agency to fund additional work, depending on how the 
Forest Service implements the project. We estimate that other 
provisions in the bill would have no net effect on the federal 
budget.
    The CBO staff contacts for this estimate are Victoria V. 
Heid (for federal costs), and Marjorie Miller (for the state 
and local impact). This estimate was approved by Paul N. Van de 
Water, Assistant Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    H.R. 2886 contains no unfunded mandates.

                        CHANGES IN EXISTING LAW

    If enacted, H.R. 2886 would make no changes in existing 
law.