[House Report 106-241]
[From the U.S. Government Publishing Office]






106th Congress                                                   Report
  1st Session           HOUSE OF REPRESENTATIVES                106-241

======================================================================




 
TO EXTEND THE AUTHORIZATION FOR THE NATIONAL HISTORIC PRESERVATION FUND

                                _______
                                

 July 20, 1999.--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. 834]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 834) to extend the authorization for the National 
Historic Preservation Fund, and for other purposes, 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. AMENDMENT OF NATIONAL HISTORIC PRESERVATION ACT.

  The National Historic Preservation Act (16 U.S.C. 470 and following; 
Public Law 89-665) is amended as follows:
          (1) Section 101(e)(2) (16 U.S.C. 470a(e)(2)) is amended to 
        read as follows:
  ``(2) The Secretary may administer grants to the National Trust for 
Historic Preservation in the United States, chartered by an Act of 
Congress approved October 26, 1949 (63 Stat. 947), consistent with the 
purposes of its charter and this Act.''.
          (2) Section 102 (16 U.S.C. 470b) is amended by redesignating 
        subsection (e) as subsection (f) and by redesignating 
        subsection (d), as added by section 4009(3) of Public Law 102-
        575, as subsection (e).
          (3) Section 107 (16 U.S.C. 470g) is amended to read as 
        follows:
  ``Sec. 107. Nothing in this Act shall be construed to be applicable 
to the White House and its grounds, the Supreme Court building and its 
grounds, or the United States Capitol and its related buildings and 
grounds. For the purposes of this Act, the exemption for the United 
States Capitol and its related buildings and grounds shall apply to 
those areas depicted within the properly shaded areas on the map titled 
`Map Showing Properties Under the Jurisdiction of the Architect of the 
Capitol,' and dated November 6, 1996, which shall be on file in the 
office of the Secretary of the Interior.''.
          (4) Section 108 (16 U.S.C. 470h) is amended by striking 
        ``1997'' and inserting ``2005''.
          (5) Section 110(a) (16 U.S.C. 470h-2(a)) is amended as 
        follows:
                  (A) In paragraph (1) by deleting the second sentence.
                  (B) In paragraph (2)(D) by deleting ``and'' at the 
                end thereof.
                  (C) In paragraph (2)(E) by striking the period at the 
                end thereof and inserting ``; and''.
                  (D) By adding at the end of paragraph (2) the 
                following new subparagraph:
          ``(F)(i) When operationally appropriate and economically 
        prudent, when locating Federal facilities, Federal agencies 
        shall give first consideration to--
                  ``(I) historic properties within historic districts 
                in central business areas; if no such property is 
                suitable; then
                  ``(II) other developed or undeveloped sites within 
                historic districts in central business areas; then
                  ``(III) historic properties outside of historic 
                districts in central business areas, if no suitable 
                site within a historic district exists;
                  ``(IV) if no suitable historic properties exist in 
                central business areas, Federal agencies shall next 
                consider other suitable property in central business 
                areas;
                  ``(V) if no such property is suitable, Federal 
                agencies shall next consider the following properties 
                outside central business areas;
                  ``(VI) historic properties within historic districts; 
                if no such property is suitable; then
                  ``(VII) other developed or undeveloped sites within 
                historic districts; then
                  ``(VIII) historic properties outside of historic 
                districts, if no suitable site within a historic 
                district exists.
          ``(ii) Any rehabilitation or construction that is undertaken 
        affecting historic properties must be architecturally 
        compatible with the character of the surrounding historic 
        district or properties.
          ``(iii) As used in this subparagraph:
                  ``(I) The term `central business area' means 
                centralized community business areas and adjacent areas 
                of similar character, including other specific areas 
                which may be recommended by local officials.
                  ``(II) The term `Federal facility' means a building, 
                or part thereof, or other real property or interests 
                therein, owned or leased by the Federal Government.
                  ``(III) The term `first consideration' means a 
                preference. When acquiring property, first 
                consideration means a price or technical evaluation 
                preference.''.
          (6) The first sentence of section 110(l) (16 U.S.C. 470h-
        2(l)) is amended by striking ``with the Council'' and inserting 
        ``pursuant to regulations issued by the Council''.
          (7) The last sentence of section 212(a) (16 U.S.C. 470t(a)) 
        is amended by striking ``2000'' and inserting ``2005''.

                          Purpose of the Bill

    The purpose of H.R. 834 is to extend the authorization for 
the National Historic Preservation Fund.

                  Background and Need for Legislation

    The National Historic Preservation Act of 1966 (NHPA, 
Public Law 89-665, codified at 16 U.S.C. 470 et seq.) 
established a general policy of federal support and funding for 
the preservation of the prehistoric and historic resources of 
the nation. For example, the NHPA authorizes the Secretary of 
the Interior to expand and maintain the National Register of 
Historic Places, an inventory of districts, sites, buildings, 
and structures significant on a national, State, or local level 
in American history, architecture, archeology, engineering, and 
culture. The Secretary has promulgated regulations to determine 
the eligibility of properties for listing utilizing specific 
criteria and procedures.
    The NHPA also encourages State and local historic 
preservation, through State Historic Preservation Officers 
(SHPO) coordinating with the Secretary. The program consists of 
identification and inventory of historic properties within a 
State; nomination of eligible properties to the National 
Register; and preparation and implementation of a Statewide 
historic preservation plan, including coordination with federal 
agencies and the public. Moreover, the NHPA authorizes a grant 
program, through the Historic Preservation Fund, to provide 
States monies for historic preservation projects and to 
individuals for the preservation of properties listed on the 
National Register. The grant program provides for two types of 
grants: one for survey and planning purposes, which essentially 
supports the administrative functions of the SHPO; the other 
supports ``bricks and mortar'' preservation or rehabilitation 
of historic properties. These funds are derived from the Land 
and Water Conservation Fund (LWCF). The LWCF has an 
authorization of appropriations of $150 million per fiscal 
year.
    The NHPA also established the Advisory Council on Historic 
Preservation, which is now an independent agency, composed of 
20 members representing a broad range of federal, State, and 
local public and private sector experience in historic 
preservation matters. The Advisory Council advises the 
President and Congress on historic preservation, reviews the 
policies of federal agencies in implementing the NHPA, conducts 
training and educational programs, and encourages public 
participation in historic preservation. The most important, and 
sometimes most controversial, role of the Advisory Council is 
administering Section 106 of NHPA (16 U.S.C. 470f). Section 106 
requires the head of any federal agency directly or indirectly 
undertaking or licensing any project to take into account the 
effect on any district, site, structure or object that is 
listed or eligible for listing on the National Register. The 
Advisory Council must also be given a reasonable opportunity to 
comment on the project.
    H.R. 834 amends the NHPA by reauthorizing appropriations 
for the Act, along with the Advisory Council on Historic 
Preservation, until 2005. The bill also exempts the Architect 
of the Capitol from the Act and modifies the way federal 
agencies consider historic properties when using these 
properties to carry out their responsibilities.
    During Full Resources Committee consideration of the bill, 
Commissioner Carlos Romero-Barcelo (D-PR) offered, but 
subsequently withdrew, an amendment that would have provided 
for a study by the Secretary of the Interior of the 
preservation and restoration needs of historic buildings and 
structures located on the campuses of Hispanic-serving 
institutions of higher learning. While the Committee is 
supportive of such a study, there was a general concern with 
the addition of any amendments unrelated to the primary purpose 
of the bill. The Committee notes that the Secretary currently 
has the general authority to undertake a study of historic 
Hispanic-serving institutions of higher learning and strongly 
encourages him to do so. The Department of the Interior has 
experience in doing such studies and the Committee believes a 
study would provide useful information in which to assess the 
historic preservation needs of these educational institutions.

                            Committee Action

    H.R. 834 was introduced on February 24, 1999, by 
Congressman Joel Hefley (R-CO). The bill was referred to the 
Committee on Resources, and within the Committee to the 
Subcommittee on National Parks and Public Lands. On April 15, 
1999 the Subcommittee held a hearing on the bill, where the 
Administration testified in support, strongly endorsing the 
reauthorization of the Historic Preservation Fund and the 
Advisory Council on Historic Preservation through 2005. On 
April 29, 1999, the Subcommittee met to consider the bill. No 
amendments were offered and the bill was ordered favorably 
reported to the Full Committee by voice vote. On June 30, 1999, 
the Full Resources Committee met to consider the bill. 
Congressman Hefley offered an amendment which detailed the 
process to be used by federal agencies when locating federal 
facilities in accordance with the NHPA. It was adopted by voice 
vote. The bill, as amended, was then ordered favorably reported 
to the House of Representatives by voice vote.

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII 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 of the Constitution of the United 
States grants Congress the authority to enact this bill.

                    Compliance With House Rule XIII

    1. Cost of Legislation. Clause 3(d)(2) 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 this bill. However, clause 3(d)(3)(B) 
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 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    3. Government Reform Oversight Findings. Under clause 
3(c)(4) of rule XIII 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 on this bill.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII 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 this bill from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 16, 1999.
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. 834, a bill to 
extend the authorization for the National Historic Preservation 
Fund, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Deborah 
Reis (for federal costs), and Marjorie Miller (for the state 
and local impact).
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 834--A bill to extend the authorization for the National Historic 
        Preservation Fund, and for other purposes

    Summary: H.R. 834 would extend through fiscal year 2005 
annual deposits of $150 million to the Historic Preservation 
Fund (HPF). Authority for such deposits, which consist of 
receipts earned from oil and gas development on the Outer 
Continental Shelf, expired at the end of fiscal year 1997. The 
National Park Service uses amounts appropriated from the HPF 
for grants to the National Trust for Historic Preservation, to 
state, local, and tribal governments, and to nonprofit and 
other organizations. The bill also would extend through 2005 
the authorization of $4 million a year for the Advisory Council 
on Historic Preservation. This sum is currently authorized to 
be appropriated (from the general fund of the U.S. Treasury) 
through fiscal year 2000.
    Assuming appropriation of the amounts deposited into the 
HPF each year, and assuming appropriation of the authorized 
amounts for the Advisory Council on Historic Preservation, CBO 
estimates that implementing H.R. 834 would result in additional 
discretionary spending of $590 million over the 2000-2004 
period. (About $330 million would be spent in subsequent 
years.) The legislation would not affect direct spending or 
receipts; therefore, pay-as-you-go procedures would not apply. 
H.R. 834 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
State and local governments would probably incur some costs to 
match the funds authorized by the bill, but these costs would 
be voluntary.
    Estimated cost to the Federal Government: The $150 million 
to be deposited into the HPF under H.R. 834 is the same amount 
that was deposited to the fund annually from 1980 through 1997, 
but is significantly greater than the $30 million to $50 
million historically appropriated (from the HPF) for each year. 
It is also higher than the 1999 appropriation of $72 million. 
In recent years, annual appropriations for the advisory council 
have been about $3 million. The estimated budgetary impact of 
H.R. 834 is shown in the fol-

lowing table. The costs of this legislation fall within budget 
function 300 (natural resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal years, in millions of dollars--
                                                           -----------------------------------------------------
                                                              1999     2000     2001     2002     2003     2004
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Budget Authority/Authorization Level \1\..............       75        4        0        0        0        0
    Estimated Outlays.....................................       53       36       20        5        0        0
Proposed Changes:
    Authorization Level...................................        0      150      154      154      154      154
    Estimated Outlays.....................................        0       45       90      147      154      154
Spending Under H.R. 834:
    Budget Authority/Authorization Level..................       75      154      154      154      154      154
    Estimated Outlays.....................................       53       81      110      152      154      154
----------------------------------------------------------------------------------------------------------------
\1\ The 1999 level includes $72 million appropriated from the HTF and $3 million appropriated for the Advisory
  Council on Historic Preservation. The 2000 level is the amount authorized under current law for appropriation
  to the council for that year.

    Basis of estimate: For purposes of this estimate, CBO 
assumes that the entire amounts deposited into the HTF or 
authorized for the advisory council under H.R. 834 will be 
appropriated for each fiscal year. Outlay estimates are based 
on historical spending patterns for council activities and HTF 
programs. We adjusted the observed outlay rates for the 
purposes of projecting future HTF outlays because the higher 
appropriations assumed in this estimate--relative to recent or 
historical appropriation levels--would likely cause some delays 
in finding matching shares for certain grants. The table does 
not include any potential spending from amounts deposited to 
the HTF in the past that have not yet been appropriated. Such 
funds--about $2.1 billion--will remain available for 
appropriation under existing law even in the absence of 
legislation.
    Other provisions of H.R. 834, which would amend the 
National Historic Preservation Act, would have no impact on the 
federal budget.
    Pay-as-you-go considerations: None.
    Estimated Impact on State, local, and tribal governments: 
H.R. 834 contains no intergovernmental mandates as defined in 
UMRA. Under current law, historic preservation grants to states 
must be matched by nonfederal funds equal to at least 40 
percent of total spending. Any spending by state and local 
governments to match the funds authorized by this bill would be 
voluntary.
    Estimated Impact on the private sector: This bill contains 
no new private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal Costs: Deborah Reis. Impact 
on State, Local, and Tribal Governments: Marjorie Miller.
    Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

               Preemption of State, Local, or Tribal Law

    This bill is not intended to preempt State, local, or 
tribal law.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

NATIONAL HISTORIC PRESERVATION ACT

           *       *       *       *       *       *       *


  Sec. 101. (a)  * * *

           *       *       *       *       *       *       *

  (e)(1)  * * *
  [(2) The Secretary shall administer a program of matching 
grant-in-aid to the National Trust for Historic Preservation in 
the United States, chartered by Act of Congress approved 
October 26, 1949 (63 Stat. 927), for the purposes of carrying 
out the responsibilities of the National Trust.]
  (2) The Secretary may administer grants to the National Trust 
for Historic Preservation in the United States, chartered by an 
Act of Congress approved October 26, 1949 (63 Stat. 947), 
consistent with the purposes of its charter and this Act.

           *       *       *       *       *       *       *

  Sec. 102. (a)  * * *

           *       *       *       *       *       *       *

  [(d)] (e) The Secretary shall make funding available to 
individual States and the National Trust for Historic 
Preservation as soon as practicable after execution of a grant 
agreement. For purposes of administration, grants to individual 
States and the National Trust each shall be considered to be 
one grant and shall be administered by the National Park 
Service as such.
  [(e)] (f) The total administrative costs, direct and 
indirect, charged for carrying out State projects and programs 
may not exceed 25 percent of the aggregate costs except in the 
case of grants under section 101(e)(6).

           *       *       *       *       *       *       *

  [Sec. 107. Nothing in this Act shall be construed to be 
applicable to the White House and its grounds, the Supreme 
Court building and its grounds, or the United States Capitol 
and its related buildings and grounds.]
  Sec. 107. Nothing in this Act shall be construed to be 
applicable to the White House and its grounds, the Supreme 
Court building and its grounds, or the United States Capitol 
and its related buildings and grounds. For the purposes of this 
Act, the exemption for the United States Capitol and its 
related buildings and grounds shall apply to those areas 
depicted within the properly shaded areas on the map titled 
`Map Showing Properties Under the Jurisdiction of the Architect 
of the Capitol,' and dated November 6, 1996, which shall be on 
file in the office of the Secretary of the Interior.
  Sec. 108. To carry out the provisions of this Act, there is 
hereby established the Historic Preservation Fund (hereafter 
referred to as the ``fund'') in the Treasury of the United 
States.
  There shall be covered into such fund $24,400,000 for fiscal 
year 1977, $100,000,000 for fiscal year 1978, $100,000,000 for 
fiscal year 1979, $150,000,000 for fiscal year 1980, and 
$150,000,000 for fiscal year 1981 and $150,000,000 for each of 
fiscal years 1982 through [1997] 2005, from revenues due and 
payable to the United States under the Outer Continental Shelf 
Lands Act (67 Stat. 462, 469), as amended (43 U.S.C. 338), and/
or under the Act of June 4, 1920 (41 Stat. 813), as amended (30 
U.S.C. 191), notwithstanding any provision of law that such 
proceeds shall be credited to miscellaneous receipts of the 
Treasury. Such moneys shall be used only to carry out the 
purposes of this Act and shall be available for expenditure 
only when appropriated by the Congress. Any moneys not 
appropriated shall remain available in the fund until 
appropriated for said purposes: Provided, That appropriations 
made pursuant to this paragraph may be made without fiscal year 
limitation.

           *       *       *       *       *       *       *

  Sec. 110. (a)(1) The heads of all Federal agencies shall 
assume responsibility for the preservation of historic 
properties which are owned or controlled by such agency. [Prior 
to acquiring, constructing, or leasing buildings for purposes 
of carrying out agency responsibilities, each Federal agency 
shall use, to the maximum extent feasible, historic properties 
available to the agency.] Each agency shall undertake, 
consistent with the preservation of such properties and the 
mission of the agency and the professional standards 
established pursuant to section 101(g), any preservation, as 
may be necessary to carry out this section.
  (2) Each Federal agency shall establish (unless exempted 
pursuant to section 214), in consultation with the Secretary, a 
preservation program for the identification, evaluation, and 
nomination to the National Register of Historic Places, and 
protection of historic properties. Such program shall ensure--
          (A)  * * *

           *       *       *       *       *       *       *

          (D) that the agency's preservation-related activities 
        are carried out in consultation with other Federal, 
        State, and local agencies, Indian tribes, Native 
        Hawaiian organizations carrying out historic 
        preservation planning activities, and with the private 
        sector; [and]
          (E) that the agency's procedures for compliance with 
        section 106--
                  (i)  * * *

           *       *       *       *       *       *       *

                  (iii) provide for the disposition of Native 
                American cultural items from Federal or tribal 
                land in a manner consistent with section 3(c) 
                of the Native American Grave Protection and 
                Repatriation Act (25 U.S.C. 3002(c))[.]; and
          (F)(i) When operationally appropriate and 
        economically prudent, when locating Federal facilities, 
        Federal agencies shall give first consideration to--
                  (I) historic properties within historic 
                districts in central business areas; if no such 
                property is suitable; then
                  (II) other developed or undeveloped sites 
                within historic districts in central business 
                areas; then
                  (III) historic properties outside of historic 
                districts in central business areas, if no 
                suitable site within a historic district 
                exists;
                  (IV) if no suitable historic properties exist 
                in central business areas, Federal agencies 
                shall next consider other suitable property in 
                central business areas;
                  (V) if no such property is suitable, Federal 
                agencies shall next consider the following 
                properties outside central business areas;
                  (VI) historic properties within historic 
                districts; if no such property is suitable; 
                then
                  (VII) other developed or undeveloped sites 
                within historic districts; then
                  (VIII) historic properties outside of 
                historic districts, if no suitable site within 
                a historic district exists.
          (ii) Any rehabilitation or construction that is 
        undertaken affecting historic properties must be 
        architecturally compatible with the character of the 
        surrounding historic district or properties.
          (iii) As used in this subparagraph:
                  (I) The term ``central business area'' means 
                centralized community business areas and 
                adjacent areas of similar character, including 
                other specific areas which may be recommended 
                by local officials.
                  (II) The term ``Federal facility'' means a 
                building, or part thereof, or other real 
                property or interests therein, owned or leased 
                by the Federal Government.
                  (III) The term ``first consideration'' means 
                a preference. When acquiring property, first 
                consideration means a price or technical 
                evaluation preference.

           *       *       *       *       *       *       *

  (l) With respect to any undertaking subject to section 106 
which adversely affects any property included in or eligible 
for inclusion in the National Register, and for which a Federal 
agency has not entered into an agreement [with the Council] 
pursuant to regulations issued by the Council, the head of such 
agency shall document any decision made pursuant to section 
106. The head of such agency may not delegate his or her 
responsibilities pursuant to such section. Where a section 106 
memorandum of agreement has been executed with respect to an 
undertaking, such memorandum shall govern the undertaking and 
all of its parts.

           *       *       *       *       *       *       *

  Sec. 212. (a) The Council shall submit its budget annually as 
a related agency of the Department of the Interior. There are 
authorized to be appropriated for the purposes of this title 
not to exceed $4,000,000 in each fiscal year 1997 through 
[2000] 2005.

           *       *       *       *       *       *       *


                                

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