[Senate Report 105-306]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 545
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-306
_______________________________________________________________________


 
       GLACIER BAY NATIONAL PARK BOUNDARY ADJUSTMENT ACT OF 1998

                                _______
                                

 September 8 (legislative day, August 31), 1998.--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. 2109]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2109) to provide for an exchange of lands 
located near Gustavus, Alaska, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment and recommends 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 1998.''

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 (4), 
selected from the area described in Section 3(b)(1), the Secretary of 
the Interior (in this Act referred to as the ``Secretary'') shall 
complete such exchange no later than 6 months after the issuance of a 
license to Gustavus Electric Company by the Federal Energy Regulatory 
Commission (in this Act referred to as ``FERC''), in accordance with 
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 and the appropriate process for the 
exchange of State lands required by State law.
    (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 that will be considered for conveyance to the 
United States pursuant to the process required by State law are lands 
owned by the State of Alaska in the Long Lake area within Wrangell-St. 
Elias National Park and Preserve or other lands owned by the State of 
Alaska.
    (3) If the Secretary and State of Alaska have not agreed on which 
lands the State of Alaska will convey by a date not later than 6 months 
after a license is issued pursuant to this Act, the United States shall 
accept, within one year after a license is issued, title of land having 
an sufficiently equal value to satisfy State and Federal law, subject 
to clear title and valid existing rights, and absence of environmental 
contamination, and as provided by the laws applicable to exchanges 
involving lands managed by the Secretary as part of the National Park 
System in Alaska and the appropriate process for the exchange of State 
lands required by State law. Such land shall be accepted by the United 
States, subject to the other provisions of this Act, from among the 
following State lands in the priority listed:
                         copper river meridian
    (A) T.6 S., R. 12 E., partially surveyed, Sec. 5, lots 1, 2, and 3, 
NE\1/4\, and S\1/2\. Containing 617.68 acres, as shown on the plat of 
survey accepted June 9, 1922.
    (B) T.6 S., R. 11 E., partially surveyed, Sec. 2, NW\1/4\NE\1/4\. 
Containing 838.66 acres, as shown on the plat of survey accepted June 
9, 1922.
    (C) T.6 S., R. 11 E., partially surveyed, Sec. 2, NW\1/4\NE\1/4\ 
and NW\1/4\. Containing 200.00 acres, as shown on the plat of survey 
accepted June 9, 1922.
    (D) T.6 S., R. 12 E., partially surveyed, Sec. 6, lots 1 through 
10, E\1/2\SW\1/4\ and SE\1/4\. Containing approximately 529.94 acres, 
as shown on the plat of survey accepted June 9, 1922.
    (4) The lands to be conveyed to the State of Alaska by the United 
States under paragraph (1) are lands to be designated by the Secretary 
and the State of Alaska, consistent with sound land management 
principles, based on those lands determined by the FERC with the 
concurrence of the Secretary and the State of Alaska, in accordance 
with section 3(b), to be the minimum amount of land necessary for the 
construction and operation of a hydroelectric project.
    (5) The time periods set forth for the completion of the land 
exchanges described in this Act may be extended as necessaryby the 
Secretary should the processes of State law or Federal law delay 
completion of an exchange.
    (6) For purposes of this Act, the term ``land'' means lands, waters 
and interests therein.
    (b) Wilderness.--(1) To ensure that this transaction maintains, 
within the National Wilderness Preservation System, approximately the 
same amount of area of designated wilderness as currently exists, the 
following lands in Alaska shall be designated as wilderness in the 
priority listed, upon consummation of the land exchange authorized by 
this Act and shall be administered according to the laws governing 
national wilderness areas in Alaska.
          (A) An unnamed island in Glacier Bay National Park lying 
        southeasterly of Blue Mouse Cove in sections 5, 6, 7, and 8, T. 
        36 S., R 54 E., CRM, and shown on United States Geological 
        Survey quadrangle Mt. Fairweather (D-2), Alaska, containing 
        approximately 789 acres.
          (B) Cenotaph Island of Glacier Bay National Park lying within 
        Lituya Bay in sections 23, 24, 25, and 26, T. 37 S., R. 47 E., 
        CRM, and shown on United States Geological Survey quadrangle 
        Mt. Fairweather (C-5), Alaska, containing approximately 280 
        acres.
          (C) An area of Glacier Bay National Park lying in T. 31. S., 
        R. 43 E and T.32 S., R. 43 E., CRM, that is not currently 
        designated wilderness, containing approximately 2,270 acres.
    (2) The specific boundaries and acreage of these wilderness 
designations may be reasonably adjusted by the Secretary, consistent 
with sound land management principles, to approximately 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 under this Act may occur 
only if--
          (1) following the submission of a complete license 
        application, FERC has conducted economic and environmental 
        analyses under the Federal Power Act (16 U.S.C. 791-828) 
        (notwithstanding provisions of that Act and the Federal 
        regulations that otherwise exempt this project from economic 
        analyses), the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321-4370), and the Fish and Wildlife Coordination Act 
        (16 U.S.C., 661-666), that conclude, with the concurrence of 
        the Secretary of the Interior with respect to subparagraphs (A) 
        and (B), 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 
                authorized by this section);
                  (B) will comply with the requirements of the National 
                Historic Preservation Act (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, with the concurrence of the 
        Secretary and the State of Alaska, the minimum amount of land 
        necessary to construct and operate this hydroelectric power 
        project; and
          (4) Gustavus Electric Company has been granted a license by 
        FERC that requires Gustavus Electric Company to submit an 
        acceptable financing plan to FERC before project construction 
        may commence, and the FERC has approved such plan.

SEC. 3. ROLE OF FERC.

    (a) License Application.--(1) The FERC licensing process shall 
apply to any application submitted by Gustavus Electric Company to the 
FERC for the right to construct and operate a hydropower project on the 
lands described in subsection (b).
    (2) FERC is authorized to accept and consider an application filed 
by Gustavus Electric Company for the construction and operation of a 
hydropower plant to be located onlands within the area described in 
subsection (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 the enactment of this Act.
    (3) FERC will retain jurisdiction over any hydropower project 
constructed on this site.
    (b) Analyses.--(1)The lands referred to in subsection (a) of this 
section are lands in the State of Alaska 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 1,015 acres.
    (2) Additional lands and acreage will be included as needed in the 
study area described in paragraph (1) to account for accretion to these 
lands from natural forces;
    (3) With the concurrence of the Secretary and the State of Alaska, 
the FERC shall determine the minimum amount of lands necessary for 
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 of 1969 in the licensing of such 
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 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 section 4(e) of 
the Federal Power Act (16 U.S.C. 797(e)).
    (3) FERC shall not license, relicense the project, or amend the 
project license 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 after the 
consummation of the land exchange authorized by this Act). 
Additionally, 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.
    (4) A condition of the license to construct and operate any portion 
of the hydroelectric power project shall be the completion, prior to 
any commencement of construction, of the land exchange described in 
this Act.

SEC. 4. ROLE OF SECRETARY OF INTERIOR.

    (a) Special Use Permit.--Notwithstanding the provisions of the 
Wilderness Act (16 U.S.C. 1133-1136), the Secretary shall issue a 
special use permit to Gustavus Electric Company to allow the completion 
of the analyses referred to in Section 3. The Secretary shall impose 
conditions in the permit as needed to protect the purposes 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 partof 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 units 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 Act. Any such adjustment 
to the boundaries of National Park System units shall not be considered 
in applying any acreage limitations under section 103(b) of Public Law 
96-487.
    (c) Wilderness Area 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. Any such adjustments to the 
boundaries of National Park System units shall not be considered in 
applying any acreage limitations under section 103(b) of Public Law 96-
487.
    (d) Payments.--Gustavus Electric Company shall not be required to 
make Federal land payments under section 10(e) of the Federal Power Act 
(16 U.S.C. 803(c)) with respect to the lands exchanged under this Act.
    (e) Concurrence of the Secretary.--Whenever in this Act the 
concurrence of the Secretary is required, it shall not be unlawfully 
withheld or unreasonably delayed.

SEC. 5. APPLICABLE LAW.

    The authorities and jurisdiction provided in this Act shall 
continue in effect until such time as this Act is expressly modified or 
repealed by Congress.

                         Purpose of the Measure

    The purpose of S. 2109, as ordered reported, is to 
authorize a land exchange between the State of Alaska and the 
United States to facilitate the construction of a hydroelectric 
power project within the boundaries of Glacier Bay National 
Park and Preserve.

                          background and need

    S. 2109 authorizes a land exchange between the State of 
Alaska and the United States to facilitate the construction and 
operation of a small hydroelectric project near Gustavus, 
Alaska.
    Gustavus is a community surrounded by the 3.3 million-acre 
Glacier Bay National Park and Preserve in the southeast 
panhandle of Alaska. 2.77 million acres of the park and 
preserve are designated as wilderness. Currently, Gustavus and 
the park's headquarters rely on separate sets of diesel engines 
for power generation. Residents of Gustavus as well as the 
Gustavus Electric Company desire the use of hydroelectric power 
as a cheaper and cleaner alternative power source to diesel 
generation.
    A location near Gustavus, at Falls Creek, has been 
identified as a feasible site for an 800 kW project. However, 
this site is located within the park in a designated wilderness 
area, where construction of hydroelectric facilities is 
prohibited by law.
    The purpose of S. 2109 is to make development of the hydro 
facility possible by exchanging the Falls Creek site from the 
Park and wilderness boundaries through an equal value exchange 
between the United States and the State of Alaska. Under the 
bill, this exchange and the construction of the hydro project 
are subject to certain conditions. These conditions include a 
finding by the Federal Energy Regulatory Commission (FERC), 
with the concurrence of the Secretary of the Interior, that the 
proposed project will have no adverse impact to the purpose and 
values for which Glacier Bay National Park and Preserve was 
established, and FERC issuance of a license for the facility. 
In addition, FERC, the Secretary of the Interior and the State 
of Alaska shall determine the minimum amount of land necessary 
to construct and operate the hydro facility.
    After the above conditions are met, a land exchange is 
authorized whereby the State of Alaska may acquire the land 
necessary to construct a hydro facility of Falls Creek. In 
exchange, the United States will acquire State land of equal 
value through mutual agreement with the State of Alaska; if no 
agreement is made, the United States shall accept land of equal 
value as specified in the bill.
    The legislation also designates certain lands in Glacier 
Bay National Park as wilderness to ensue that there would be no 
net loss of wilderness acreage in the park as a result of 
removing the Falls Creek area from the park boundary.

                          legislative history

    S. 2109 was introduced by Senator Murkowski and Senator 
Stevens on May 21, 1998 and referred to the Committee on Energy 
and Natural Resources. The Subcommittee on National Parks, 
Historic Preservation, and Recreation held a hearing on S. 2109 
on July 23, 1998.
    At its business meeting on July 29, 1998, the Committee on 
Energy and Natural Resources ordered S. 2109, as amended, 
favorably reported.

            committee recommendation and tabulation of votes

    The Committee on Energy and Natural Resources, in open 
business session on July 29, 1998, by a unanimous voice vote of 
a quorum present, recommends that the Senate pass S. 2109, if 
amended, as described herein.

                          committee amendment

    During the consideration of S. 2109, the Committee adopted 
an amendment in the nature of a substitute, which made several 
technical and clarifying changes to the bill as introduced. The 
amendment is described in detail in the section-by-section 
analysis, below.

                      section-by-section analysis

    Section 1 designates the short title as the ``Glacier Bay 
National Park Boundary Adjustment Act of 1998.''
    Section 2(a) requires the Secretary of the Interior to 
convey to the State of Alaska certain land in Glacier Bay 
National Park and Preserve near Falls Creek, in exchange for 
State land that will become part of the National Park System in 
the State of Alaska.
    The land to be conveyed to the State by the Secretary of 
the Interior is to be the minimum needed for the proposed 
hydroelectric project, as determined by the Federal Energy and 
Regulatory Commission (FERC) in accordance with the National 
Environmental Policy Act (NEPA) process.
    Section 2(a)(1) authorizes the United States and the State 
of Alaska (the ``State'') to enter into a land exchange, 
subject to the conditions of this Act. Upon the State's offer 
to transfer lands identified in paragraph (2) to the United 
States, the Secretary of the Interior (the ``Secretary'') is 
directed to transfer lands located in Glacier Bay National Park 
to the State. The exchange is to be completed no later than 6 
months after the Gustavus Electric Company receives a license 
from the Federal Energy Regulatory Commission (FERC) for the 
Hydroelectric project.
    Paragraph (2) provides that the State lands to be conveyed 
to the United States are to be identified by mutual agreement 
of the Secretary and the State.
    Paragraph (3) states that if, within 6 months after a 
license is issued to the Gustavus Electric Company, the 
Secretary and the State are unable to agree on the specific 
State lands to be conveyed, the United States shall accept 
clear title to State lands having sufficiently equal value of 
the Federal lands conveyed to the State. The paragraph 
specifically identifies State lands located in Wrangell-St. 
Elias National Park and Preserve that are to be conveyed to the 
United States.
    Paragraph (4) identifies the Federal lands that are to be 
conveyed to the State. The Federal lands are located in the 
Falls Creek area of Glacier Bay National Park. The lands to be 
conveyed are to be designated by the Secretary and the State, 
consistent with sound land management principles, that the 
FERCdetermines, in concurrence with the Secretary and the State, to be 
the minimum amount of land necessary for the construction and operation 
of the hydroelectric project.
    Paragraph (5) authorizes the Secretary to extend the time 
periods set forth in this section if processes of Federal or 
State law delay the completion of the exchange.
    Subsection (b)  provides for no net loss of wilderness 
acreage within Glacier Bay National Park and preserve. To the 
extent that land is taken our of wilderness and conveyed to the 
State of Alaska pursuant to the process described in the 
previous section, an equal amount of lands currently within 
Glacier Bay National Park and Preserve but not yet designated 
as wilderness is designated as wilderness.
    Subsection (c)  provides that any exchange of lands under 
this Act may occur only if the following conditions are met:
          (1) FERC must conduct economic and environmental 
        analysis under the Federal Power Act, National 
        Environmental Policy Act, and the Fish and Wildlife 
        Coordination Act which determine that the construction 
        and operation of the hydroelectric project will not 
        adversely impact the purposes and values for which 
        Glacier Bay National Park and Preserve was established; 
        the project will meet the requirements of the National 
        Historic Preservation Act; and that the project can be 
        accomplished in an economically feasible manner. The 
        Secretary of the Interior must concur in this 
        determination;
          (2) FERC must hold one public meeting in Gustavus;
          (3) FERC must determine the minimum amount of land 
        necessary to operate the proposed hydro project; and
          (4) Gustavus Electric Company must obtain a license 
        from FERC.
    Section 3(a) provides that the FERC licensing process shall 
apply to any application submitted by Gustavus Electric Company 
for the right to construct and operate a hydro project in the 
Falls Creek area and FERC is authorized to accept such an 
application notwithstanding Section 3(2) of the Federal Power 
Act. Gustavus Electric Company must submit its application 
within three years from the date of enactment of this Act.
    Subsection (b) describes the location of the Falls Creek 
lands and requires that FERC, with the concurrence of the 
Secretary and the State, to determine the minimum amount of 
lands necessary for construction and the operation of the 
hydroelectric project.
    In addition, the section require the National Park Service 
to participate as the joint lead agency in the development of 
any environmental documentation under NEPA in the licensing of 
the project.
    Subsection (c)  provides that Gustavus Electric Company 
must submit a financial plan that is approved by FERC and that 
the National Park Service waives its right to impose mandatory 
conditions on the project lands as might otherwise be allowed 
under Section 4(e) of the Federal Power Act.
    FERC shall not license the project unless it determines, 
with the Secretary's concurrence, that the project will not 
adversely impacts on the purposes and values for which Glacier 
Bay National park and Preserve was established. Additionally 
the license shall require the licensee to mitigate any adverse 
effects identified by the Secretary after the initial 
licensing.
    Section 4 provides that the Gustavus Electric Company shall 
be granted a special use permit to perform NEPA work required 
for an environmental analysis under NEPA.
    In addition, the section provides that the lands acquired 
from the State of Alaska under this Act shall be added to and 
administered as part of the National Park System. The 
boundaries of Glacier Bay National Park and Preserve are 
modified to reflect the exclusion of the lands transferred to 
the State. In addition the boundaries of Glacier Bay National 
Park and Preserve and Wrangell-St. Elias National Park and 
Preserve are adjusted, where necessary, to reflect the addition 
of the lands conveyed by the State. Any such adjustment to the 
boundaries of the National Park System unit shall not be 
considered in applying any acreage limitations under Section 
102[b] of the Alaska National Interest Lands Conservation Act.
    Gustavus Electric Company shall not be required to make 
federal land payments under the Federal Power Act with respect 
to the lands exchanged under this Act.
    Section 5 provides that the authorities and jurisdiction 
provided in this Act shall remain in effect until expressed and 
modified or repealed by Congress.

                   cost and budgetary considerations

    The following cost estimate of this measure has been 
provided by the Congressional Budget Office:
                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 14, 1998.
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. 2109, the Glacier 
Bay National Park Boundary Adjustment 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 Majorie Miller (for the state and 
local impact).
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

S. 2109--Glacier Bay National Park Boundary Adjustment Act of 1998

    CBO estimates that implementing S. 2109 would cost the 
federal government less than $500,000 over the 1999-2003 
period, assuming the availability of appropriated funds. 
Because S. 2109 would not affect direct spending or receipts, 
pay-as-you-go procedures would not apply to the bill. S. 2109 
contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act and would impose no 
costs on state, local, or tribal governments.
    S. 2109 would direct the Secretary of the Interior to 
convey to the state of Alaska sufficient federal land within 
the wilderness boundaries of Glacier Bay National Park and 
Preserve (GBNPP) to allow the Gustavus Electric Company (GEC) 
to construct and operate a hydroelectric project there. 
According to the National Park Service (NPS) and the state of 
Alaska, roughly 1,000 acres of federal land could be conveyed 
to the state, depending on the outcome of analysis by federal 
agencies and the state as to the minimum amount of land 
necessary for the project. In exchange, based on negotiations 
between the state and federal government, the state would 
convey to the federal government land to be selected from 
acreage specified in the bill. Land acquired from Alaska would 
be added to the National Park System. Upon completion of the 
exchange, the bill would designate as wilderness enough federal 
land in Alaska to avoid any net loss of wilderness acreage 
relative to current law.
    S. 2109 would make the land exchange contingent on several 
items, including an analysis of the impact of the proposed 
hydroelectric project on GBNPP and an action by the Federal 
Energy Regulatory Commission (FERC) to grant GEC a license for 
the project. The bill would allow GEC three years from 
enactment to apply for a license from FERC. The Secretary of 
the Interior would have six months from the date on which FERC 
issues GEC a license to complete the land exchange. If the 
Secretary and the state do not agree within six months as to 
the state land to be conveyed to the federal government, the 
bill would require the Department of the Interior to accept 
state land of sufficient value to complete the exchange.
    Based on information from the NPS, CBO estimates that 
conveying the federal land required for the hydroelectric 
project and designating additional federal land as wilderness 
would not result in any loss of receipts to the U.S. Treasury. 
We estimate that conducting the environmental analyses, 
implementing the conveyance, and adjusting park boundaries 
would cost the NPS less than $500,000 over the 1999-2003 
period, assuming the availability of appropriated funds. 
Furthermore, CBO estimates that any additional work by FERC to 
implement this bill would have no net budgetary impact. If FERC 
receives additional appropriated funds to cover the cost of 
analyses and licensing, then the agency would offset those 
costs by collecting additional fees, as required under current 
law. In any case, we estimate that such FERC costs would be 
negligible.
    The state of Alaska currently pays subsidies to individuals 
in the community to Gustavus to reduce their cost for electric 
power. 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.
    On July 30, 1998, CBO prepared a cost estimate for H.R. 
3903 as ordered reported by the House Committee on Resources on 
July 22, 1998. S. 2109 is similar to H.R. 3903, and the 
estimated costs are the same.
    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 Robert A. 
Sunshine, Deputy Assistant Director for Budget Analysis.

                      regulatory impact 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. 2109. The bill is not a regulatory measure in 
the sense of imposing Government-established standards of 
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 
enactment of S. 2109, as ordered reported.

                        executive communication

    The testimony of the Department of the Interior at the 
Subcommittee hearing follows:

STATEMENT OF MAUREEN FINNERTY, ASSOCIATE DIRECTOR, OPERATIONS, NATIONAL 
                PARK SERVICE, DEPARTMENT OF THE INTERIOR

    I appreciate the opportunity to appear before you to 
present the position of the Department of the Interior on S. 
2109, a bill to authorize an exchange of lands in Glacier Bay 
National Park and Preserve. The Department of the Interior has 
worked with the proponents of this bill to secure language 
intended to protect park, wilderness, and environmental values 
associated with the area affected by this bill and we believe 
that much progress has been made. However, the administration 
does not yet have a position on this bill. It would be 
extremely unusual to remove land, especially land that has been 
designated by Congress as wilderness, from a park. It would be 
even more unusual to remove such land in order to facilitate a 
development project that could have adverse environmental 
impacts and for which there could well be reasonable 
alternatives. Such an extraordinary proposal is of great 
importance not only with respect to the nationally significant 
lands and waters that are involved but also with respect to any 
precedents that may or may not be set for other situations in 
the future. This proposal, therefore, requires the most careful 
review within the administration.
    S. 2109 is intended to allow for a land exchange to take 
place between the Department of the Interior and the State of 
Alaska if certain environmentally protective conditions are 
met. In that case, the Department of the Interior would 
transfer to the State of Alaska an amount of designated 
wilderness that would not exceed 1,100 acres, in an equal value 
exchange for state land that would be included in the national 
park system. The state would seek to allow a hydroelectric 
facility to be developed on the former park land.
    The proposal is driven by the desire of the remote town of 
Gustavus, Alaska, for energy that is based on a renewable 
resource. The town presently relies on a fossil fuel-burning 
diesel generator to meet its energy needs. As a neighbor of 
Gustavus, and a diesel power consumer itself, Glacier Bay 
National Park supports the town's desire to end its dependency 
on fossil fuel-fired power and to switch to a less polluting 
form of power production. However, the administration would not 
consider supporting any such proposal that lacked all 
appropriate measures to ensure the protection of Glacier Bay 
National Park and Preserve, the national park system, and the 
national wilderness preservation system, or that otherwise 
shortchanged the American people.
    Several provisions in the bill are useful in addressing 
these issues. First, the bill does not compel or endorse either 
the hydropower project or the land exchange. The land exchange 
itself would be triggered only if several environmentally 
protective conditions were met.
    The bill would require the proponent of this project to 
obtain from the Federal Energy Regulatory Commission (FERC) a 
license to operate and construct the hydroelectric plant. 
During the license application process, FERC will have to 
conduct various environmental and economic analyses specified 
by the bill. The project and all reasonable alternatives would 
have to be considered, including different forms of power 
generation and alternative locations of any facilities, and the 
need for this project will have to be determined.
    A license would not be issued unless an environmental 
analysis conducted jointly by FERC and the National Park 
Service, with public involvement, determined, among other 
things, that the project (including the land exchange) would 
not adversely impact the purposes and values of Glacier Bay 
National Park and Preserve, and that the acreage removed from 
the park is the minimum amount necessary to construct and 
operate this project. The analysis would also have to determine 
that the proposed action would comply with the requirements of 
the National Historic Preservation Act, and could be 
accomplished in an economically feasible manner before the land 
exchange could be consummated. Furthermore, the process would 
have to consider environmental impacts on the lands proposed 
for deletion. The Secretary would assure protection for bears 
and other park wildlife that use this area for foraging and 
migration. The Secretary of the Interior, and the Secretary of 
Commerce, would have prescription authority under the federal 
Power Act (18 U.S.C. 811) to protect the salmon and its 
habitat.
    Even after these analyses are performed and these steps are 
taken, the exchange could not be completed without the 
Secretary's concurrence with the conclusions of the analyses. 
Finally, if the exchange goes forward, the bill would designate 
as wilderness the same amount of land in Glacier Bay National 
Park that is removed from the park through the land exchange.
    The bill would also provide the National Park Service and 
FERC with an ongoing role in the monitoring of the plant. The 
bill provides that FERC would retain jurisdiction over the 
operation of this plant and in the exercise of this 
jurisdiction FERC would not be able to relicense this project 
unless it determined, with the Secretary's concurrence, that 
the project would not adversely impact the values and purposes 
of Glacier Bay National Park and Preserve.
    The bill further provides that the Department of the 
Interior would receive in exchange for the land transferred to 
the State lands that are worthy of inclusion in the national 
park system and are equal in value to the transferred lands. 
These lands are to be identified through an agreement between 
the Secretary and the State of Alaska. If the State and the 
Secretary cannot reach an agreement within 6 months of the 
issuance of the license to construct the plant, then state-
owned lands specifically identified in the bill in the Long 
Lake area of Wrangell St. Elias National Park would be 
transferred to the National Park Service. These lands have high 
scenic and natural resource values and their protection is 
important to public use along the Chitina to McCarthy Road. As 
written, the bill does not include a particular parcel of state 
land along the eastern end of Long Lake that we believe the 
state has agreed to include in this proposal. This parcel of 
land should be included in the bill and we understand that this 
omission is merely a technical error that will be corrected.
    We appreciate the work of the sponsors of this bill and 
look forward to continuing to work with you through the 
legislative process. This concludes my statement. I would be 
happy to answer any of your questions.

                        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 S. 2109, as ordered 
reported.