[House Report 106-569]
[From the U.S. Government Publishing Office]



                                                                       
106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-569

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



 
                    PRIBILOF ISLANDS TRANSITION ACT
                                _______
                                

 April 11, 2000.--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. 3417]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 3417) to complete the orderly withdrawal of the National 
Oceanic and Atmospheric Administration from the civil 
administration of the Pribilof Islands, Alaska, 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 referred to as the ``Pribilof Islands Transition 
Act''.

SEC. 2. PURPOSE.

  The purpose of this Act is to complete the orderly withdrawal of the 
National Oceanic and Atmospheric Administration from the civil 
administration of the Pribilof Islands, Alaska.

SEC. 3. FINANCIAL ASSISTANCE FOR PRIBILOF ISLANDS UNDER FUR SEAL ACT OF 
                    1966.

  Public Law 89-702, popularly known and referred to in this Act as the 
Fur Seal Act of 1966, is amended by amending section 206 (16 U.S.C. 
1166) to read as follows:

``SEC. 206. FINANCIAL ASSISTANCE.

  ``(a) Grant Authority.--
          ``(1) In general.--Subject to the availability of 
        appropriations, the Secretary shall provide financial 
        assistance to any city government, village corporation, or 
        tribal council of St. George, Alaska, or St. Paul, Alaska.
          ``(2) Use for matching.--Notwithstanding any other provision 
        of law relating to matching funds, funds provided by the 
        Secretary as assistance under this subsection may be used by 
        the entity as non-Federal matching funds under any Federal 
        program that requires such matching funds.
          ``(3) Restriction on use.--The Secretary may not use or 
        withhold financial assistance authorized by this Act--
                  ``(A) to settle any debt owed to the United States;
                  ``(B) for administrative or overhead expenses; or
                  ``(C) for contributions authorized under section 
                5(b)(3)(C) of the Pribilof Islands Transition Act.
          ``(4) Funding instruments and procedures.--In providing 
        assistance under this subsection the Secretary shall use 
        funding instruments and procedures that are equivalent to the 
        instruments and procedures required to be used by the Bureau of 
        Indian Affairs pursuant to title IV of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450 et 
        seq.), so as to foster maximum flexibility in the local 
        administration of such assistance.
          ``(5) Pro rata distribution of assistance.--In any fiscal 
        year for which less than all of the funds authorized under 
        subsection (c)(1) are appropriated, such funds shall be 
        distributed under this subsection on a pro rata basis among the 
        entities referred to in subsection (c)(1) in the same 
        proportions in which amounts are authorized by that subsection 
        for grants to those entities.
  ``(b) Solid Waste Assistance.--Subject to the availability of 
appropriations, the Secretary shall provide assistance to the State of 
Alaska for designing, locating, constructing, redeveloping, permitting, 
or certifying solid waste management facilities on the Pribilof Islands 
necessitated by the National Oceanic and Atmospheric Administration's 
administration of the islands under the Fur Seal Act of 1966 to be 
operated under a permit issued by the State of Alaska under section 
46.03.100 of the Alaska Statutes.
  ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary--
          ``(1) for assistance under subsection (a)--
                  ``(A) $9,000,000, for grants to the city of St. Paul;
                  ``(B) $6,300,000, for grants to the Tanadgusix 
                Corporation;
                  ``(C) $1,500,000, for grants to the St. Paul Tribal 
                Council;
                  ``(D) $6,000,000, for grants to the city of St. 
                George;
                  ``(E) $4,200,000, for grants to the St. George Tanaq 
                Corporation; and
                  ``(F) $1,000,000, for grants to the St. George Tribal 
                Council; and
          ``(2) for assistance under subsection (b), such sums as may 
        be necessary for each of fiscal years 2001, 2002, and 2003.
  ``(d) Limitation on Use of Assistance for Lobbying Activities.--None 
of the funds authorized by this section may be available for any 
activity a purpose of which is to influence legislation pending before 
the Congress, except that this subsection shall not prevent officers or 
employees of the United States or of its departments, agencies, or 
commissions from communicating to Members of Congress, through proper 
channels, requests for legislation or appropriations that they consider 
it necessary for the efficient conduct of public business.
  ``(e) Immunity From Liability.--The Department of Commerce and the 
National Oceanic and Atmospheric Administration shall not have any 
liability under this Act associated with or resulting from the 
designing, locating, contracting for, redeveloping, permitting, 
certifying, operating, or maintaining any solid waste management 
facility on the Pribilof Islands as a consequence of having provided 
assistance to the State of Alaska under subsection (b).''.

SEC. 4. DISPOSAL OF PROPERTY.

  Section 205 of the Fur Seal Act of 1966 (16 U.S.C. 1165) is amended--
          (1) by amending subsection (c) to read as follows:
  ``(c) Not later than 3 months after the date of enactment of the 
Pribilof Islands Transition Act, the Secretary shall submit to the 
Committee on Commerce, Science, and Transportation of the Senate and 
the Committee on Resources of the House of Representatives a report 
that includes--
          ``(1) a description of all property specified in the document 
        referred to in subsection (a) that has been conveyed under that 
        subsection;
          ``(2) a description of all Federal property specified in the 
        document referred to in subsection (a) that is going to be 
        conveyed under that subsection; and
          ``(3) an identification of all Federal property on the 
        Pribilof Islands that will be retained by the Federal 
        Government to meet its responsibilities under this Act, the 
        Convention, and any other applicable law.''; and
          (2) by striking subsection (g).

SEC. 5. TERMINATION OF RESPONSIBILITIES.

  (a) Future Obligation.--
          (1) In general.--The Secretary of Commerce shall not be 
        considered to have any obligation to promote or otherwise 
        provide for the development of any form of an economy not 
        dependent on sealing on the Pribilof Islands, Alaska, including 
        any obligation under section 206 of the Fur Seal Act of 1966 
        (16 U.S.C. 1166) or section 3(c)(1)(A) of Public Law 104-91 (16 
        U.S.C. 1165 note).
          (2) Savings.--This subsection shall not affect any cause of 
        action under section 206 of the Fur Seal Act of 1966 (16 U.S.C. 
        1166) or section 3(c)(1)(A) of Public Law 104-91 (16 U.S.C. 
        1165 note)--
                  (A) that arose before the date of the enactment of 
                this Act; and
                  (B) for which a judicial action is filed before the 
                expiration of the 5-year period beginning on the date 
                of the enactment of this Act.
          (3) Rule of construction.--Nothing in this Act shall be 
        construed to imply that--
                  (A) any obligation to promote or otherwise provide 
                for the development in the Pribilof Islands of any form 
                of an economy not dependent on sealing was or was not 
                established by section 206 of the Fur Seal Act of 1966 
                (16 U.S.C. 1166), section 3(c)(1)(A) of Public Law 104-
                91 (16 U.S.C. 1165 note), or any other provision of 
                law; or
                  (B) any cause of action could or could not arise with 
                respect to such an obligation.
          (4) Conforming amendment.--Section 3(c)(1) of Public Law 104-
        91 (16 U.S.C. 1165 note) is amended by striking subparagraph 
        (A) and redesignating subparagraphs (B) through (D) in order as 
        subparagraphs (A) through (C).
  (b) Property Conveyance and Cleanup.--
          (1) In general.--Subject to paragraph (2), there are 
        terminated all obligations of the Secretary of Commerce and the 
        United States to--
                  (A) convey property under section 205 of the Fur Seal 
                Act of 1966 (16 U.S.C. 1165); and
                  (B) carry out cleanup activities, including 
                assessment, response, remediation, and monitoring, 
                related to National Oceanic and Atmospheric 
                Administration administration of the Pribilof Islands, 
                Alaska, under section 3 of Public Law 104-91 (16 U.S.C. 
                1165 note) and the Pribilof Islands Environmental 
                Restoration Agreement between the National Oceanic and 
                Atmospheric Administration and the State of Alaska, 
                signed January 26, 1996.
          (2) Application.--Paragraph (1) shall apply on and after the 
        date on which--
                  (A) the State of Alaska determines that all 
                responsibilities of the Secretary, the Department of 
                Commerce, and the United States under the Pribilof 
                Islands Environmental Restoration Agreement between the 
                National Oceanic and Atmospheric Administration and the 
                State of Alaska, signed January 26, 1996, have been 
                fulfilled;
                  (B) the Secretary of Commerce has completed the 
                cleanup required under section 3(a) of Public Law 104-
                91 (16 U.S.C. 1165 note);
                  (C) the Secretary of Commerce determines that the 
                properties specified in the document referred to in 
                subsection (a) of section 205 of the Fur Seal Act of 
                1966 (16 U.S.C. 1165(a)), as amended by this Act, can 
                be unconditionally offered for conveyance under that 
                section; and
                  (D) the Secretary of Commerce determines that all 
                amounts authorized under section 206(c)(1) of the Fur 
                Seal Act of 1966, as amended by this Act, have been 
                appropriated and obligated.
          (3) Limitation on seeking contributions.--(A) After 
        subsection (c) becomes effective and except as provided in 
        subparagraph (C), no Federal agency or department shall seek 
        financial contributions from any Natives of the Pribilof 
        Islands for costs or fees incurred by the Secretary of Commerce 
        for actions taken pursuant to--
                  (i) the Pribilof Islands Environmental Restoration 
                Agreement between the Secretary and the State of Alaska 
                Department of Environmental Conservation; or
                  (ii) section 3(a) of Public Law 104-91 (16 U.S.C. 
                1165 note).
          (B) Subparagraph (A) applies only to the following actions:
                  (i) The cleanup of any wastes, dumps, debris, storage 
                tanks, property, hazardous or unsafe conditions, and 
                contaminants, including petroleum products and their 
                derivatives, left by the National Oceanic and 
                Atmospheric Administration or any other Federal agency 
                or department prior to the date of enactment of this 
                Act on lands that it or its predecessor agencies 
                abandoned, quitclaimed, or otherwise transferred or are 
                obligated to transfer, to local entities or residents 
                on the Pribilof Islands, Alaska, pursuant to the Fur 
                Seal Act of 1966 (16 U.S.C. 1151 et seq.) or other 
                applicable law.
                  (ii) The closure of solid waste management facilities 
                or the designing, locating, contracting for, 
                redeveloping, permitting, or certifying of any solid 
                waste management facility on the Pribilof Islands.
          (C) After subsection (c) becomes effective, the Secretary of 
        Commerce may seek contribution from the responsible Natives of 
        the Pribilof Islands for costs or fees incurred to cleanup any 
        wastes, dumps, debris, storage tanks, property, hazardous or 
        unsafe conditions, and contaminants, including petroleum 
        products and their derivatives, left by such Natives of the 
        Pribilof Islands after the date of enactment of this Act on 
        lands, except for landfills or solid waste management 
        facilities, that the National Oceanic and Atmospheric 
        Administration or its predecessor agencies abandoned, 
        quitclaimed, or otherwise transferred or are obligated to 
        transfer to local entities or residents on the Pribilof 
        Islands, Alaska, pursuant to the Fur Seal Act of 1966 (16 
        U.S.C. 1151 et seq.) or other applicable law.
          (4) Certain reserved rights not conditions.--For purposes of 
        paragraph (2)(C), the following requirements shall not be 
        considered to be conditions on conveyance of property:
                  (A) Any requirement that a potential transferee must 
                allow the National Oceanic and Atmospheric 
                Administration continued access to the property to 
                conduct environmental monitoring following remediation 
                activities.
                  (B) Any requirement that a potential transferee must 
                allow the National Oceanic and Atmospheric 
                Administration access to the property to continue the 
                operation, and eventual closure, of treatment 
                facilities.
                  (C) Any requirement that a potential transferee must 
                comply with institutional controls to ensure that an 
                environmental cleanup remains protective of human 
                health or the environment that do not unreasonably 
                affect the use of the property.
                  (D) Valid existing rights in the property, including 
                rights granted by contract, permit, right-of-way, or 
                easement.
                  (E) The terms of the documents described in 
                subsection (d)(2).
  (c) Repeals.--Effective on the date described in subsection (b)(2), 
the following provisions are repealed:
          (1) Section 205 of the Fur Seal Act of 1966 (16 U.S.C. 1165).
          (2) Section 3 of Public Law 104-91 (16 U.S.C. 1165 note).
  (d) Savings.--
          (1) In general.--Nothing in this Act shall affect any 
        obligation of the Secretary of Commerce, or of any Federal 
        department or agency, under or with respect to any document 
        described in paragraph (2) or with respect to any lands subject 
        to such a document.
          (2) Documents described.--The documents referred to in 
        paragraph (1) are the following:
                  (A) The Transfer of Property on the Pribilof Islands: 
                Description, Terms, and Conditions, dated February 10, 
                1984, between the Secretary of Commerce and various 
                Pribilof Island entities.
                  (B) The Settlement Agreement between Tanadgusix 
                Corporation and the city of St. Paul, dated January 11, 
                1988, and approved by the Secretary of Commerce on 
                February 23, 1988.
                  (C) The Memorandum of Understanding between 
                Tanadgusix Corporation, Tanaq Corporation, and the 
                Secretary of Commerce, dated December 22, 1976.
  (e) Definitions.--
          (1) In general.--Except as provided in paragraph (2), the 
        definitions set forth in section 101 of the Fur Seal Act of 
        1966 (16 U.S.C. 1151) shall apply to this section.
          (2) Natives of the pribilof islands.--For purposes of this 
        section, the term ``Natives of the Pribilof Islands'' includes 
        the Tanadgusix Corporation, the St. George Tanaq Corporation, 
        and the city governments and tribal councils of St. Paul and 
        St. George, Alaska.

SEC. 6. TECHNICAL AND CLARIFYING AMENDMENTS.

  (a) Public Law 104-91 and the Fur Seal Act of 1966 are amended by--
          (1) striking the heading for subsection (d) of section 3 of 
        Public Law 104-91; and
          (2) moving and redesignating such subsection so to appear as 
        section 212 of the Fur Seal Act of 1966.
  (b) Section 201 of the Fur Seal Act of 1966 (16 U.S.C. 1161) is 
amended by striking ``on such Islands'' and insert ``on such 
property''.
  (c) The Fur Seal Act of 1966 is amended by inserting before title I 
the following:

``SECTION 1. SHORT TITLE.

  This Act may be cited as the `Fur Seal Act of 1966'.''.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

  Section 3 of Public Law 104-91 (16 U.S.C. 1165 note) is amended--
          (1) in subsection (f) by striking ``1996, 1997, and 1998'' 
        and inserting ``2001, 2002, and 2003''; and
          (2) by adding at the end the following:
  ``(g) Low Interest Loan Program.--
          ``(1) Capitalization of revolving fund.--Of amounts 
        authorized under subsection (f) for each of fiscal years 2001, 
        2002, and 2003, the Secretary may provide to the State of 
        Alaska up to $2,000,000 per fiscal year to establish and 
        capitalize a revolving fund to be used by the State for loans 
        under this subsection.
          ``(2) Low interest loans.--The Secretary shall require that 
        any revolving fund established with amounts provided under this 
        subsection shall be used only to provide low interest loans to 
        Natives of the Pribilof Islands to assess, respond, remediate, 
        and monitor contamination from lead paint, asbestos, and 
        petroleum from underground storage tanks that resulted from 
        National Oceanic and Atmospheric Administration of the Pribilof 
        Islands under the Fur Seal Act of 1966.
          ``(3) Natives of the pribilof islands defined.--The 
        definitions set forth in section 101 of the Fur Seal Act of 
        1966 (16 U.S.C. 1151) shall apply to this section, except that 
        the term `Natives of the Pribilof Islands' shall include the 
        Tanadgusix and Tanaq Corporations.''.

                          Purpose of the Bill

    The purpose of H.R. 3417 is to complete the orderly 
withdrawal of the National Oceanic and Atmospheric 
Administration from the civil administration of the Pribilof 
Islands, Alaska.

                  Background and Need for Legislation


                    History of the Pribilof Islands

    The Pribilof Islands, St. Paul and St. George, are located 
in the Bering Sea 800 miles west-southwest of Anchorage, 
Alaska. The islands are the breeding grounds of the North 
Pacific fur seal. Each island contains about 44 square miles of 
land. Roughly 780 people live on St. Paul, and 120 reside on 
St. George.
    The islands were discovered in 1786 by Russian explorers 
who were searching for the fur seal breeding grounds. To 
exploit the fur seals for their pelts, the Russians relocated 
and enslaved Aleuts from the Aleutian Islands to the Pribilof 
Islands. These Native Alaskans were experienced seal hunters, 
and the pelts they harvested were tremendously valuable in 
China, Russia, and Europe.
    When the federal government acquired Alaska in 1867, that 
purchase included the Pribilof Islands. In 1868, the Islands 
were declared to be a special Federal Reserve for the purpose 
of managing fur seals and other fur-bearing species. The 
federal government contracted with private firms for the 
harvest of fur seals and the Aleuts continued to conduct the 
harvests as employees of these firms. It is estimated that the 
federal government's portion of the profit from the fur seal 
trade paid for the purchase price of Alaska in roughly 20 
years.
    By 1890, the fur seal population was in decline and when 
the last private contract ended in 1909, it was estimated that 
only 300,000 fur seals remained worldwide. In 1910, Congress 
passed ``An Act to protect the seal fisheries of Alaska, and 
for other purposes.'' The 1910 Act vested the authority to 
manage and protect fur seals in the Secretary of Commerce and 
Labor, and prohibited anyone other than an officer, agent or 
employee of the federal government from killing seals. The Act 
further required that Pribilovians were to be employed in the 
seal harvest and to receive fair compensation for their labor. 
To administer the fur seal management program, the Secretary 
was given ``the authority to furnish food, shelter, fuel, 
clothing and other necessities of life to the native 
inhabitants of the Pribilof Islands and to provide for their 
comfort, maintenance, education and protection.''
    Minor amendments were made to the Act in 1912 to give 
effect to the Fur Seal Treaty of July 7, 1911, between the 
United States, Great Britain, Japan and Russia. In 1944, the 
Act was repealed and replaced with the Fur Seal Act of February 
26, 1944. This measure gave control of the fur seals and other 
fisheries resources in Alaska to the Secretary of the Interior 
acting through the Bureau of Commercial Fisheries (BCF). The 
Fur Seal Act of 1944 was a result of Japan's abrogation of the 
Fur Seal Treaty at the outbreak of World War II, and a new fur 
seal conservation measure that was reached with Canada in 1942. 
After the Japanese attack on Dutch Harbor, Alaska, in 1942, the 
residents of the Pribilofs and other Aleuts were interned by 
the United States Government for the remainder of the war.
    In 1949, the Secretary of the Interior conducted a study of 
the living conditions on the Pribilofs and in other Native 
communities around the Bering Sea. As a result, a job 
classification and wage-based compensation system was 
established for Pribilovian federal employees. Nonetheless, 
food, housing, health, and education costs were still paid by 
the government. The study also recommended that the St. Paul 
community receive a charter, constitution and bylaws under the 
1934 Indian Reorganization Act (IRA). The St. Paul charter was 
established in 1950. In 1951, the St. Paul IRA council filed a 
claim for native land rights and compensation for past 
injustices. The land rights were ultimately resolved by the 
Alaska Native Claims Settlement Act (ANCSA) in 1971. The claim 
for past injustices was ultimately brought under the Fair and 
Honorable Dealings Act and was settled in 1976. In 1988, the 
Pribilovians and other Aleuts who were interned in World War II 
received additional compensation as part of the legislation 
that compensated Japanese American internees.
    In 1957, the United States, Japan, the Soviet Union and 
Canada entered into a new international agreement to protect 
fur seals, the Interim North Pacific Fur Seal Convention. It 
established a Fur Seal Commission to coordinate research and 
management of the fur seal resource. In 1959, the BCF announced 
that sealing would become a seasonal activity and recommended 
that the Pribilovians be relocated and given job training.
    Local opposition scuttled efforts to relocate the Island 
residents, and Interior then encouraged voluntary relocation of 
St. George residents to St. Paul. No new homes were built on 
St. George and vacant homes were destroyed. After Congressional 
hearings in 1965, the relocation policy was abandoned.
    In 1963, the BCF issued a report entitled, Program for 
Administration of the Pribilof Island Federal Reservation 
Embracing Management of the Fur Seal Resources and Development 
of the Resident Aleut Inhabitants. As a result of work that 
went into preparing the report, the BCF began applying the 
Federal Civil Service wage scale on the Islands in 1962. As a 
result, rent and food subsidies were reduced, but the federal 
government continued to provide municipal and social services.

                          Fur Seal Act of 1966

    In 1965, the Senate Commerce Committee held hearings on the 
role of the federal government on the Pribilof Islands. As a 
result of those hearings, Congress adopted the Fur Seal Act of 
1966 (Public Law 89-702, codified at 16 U.S.C. 1151 et seq.). 
Title I of that Act conformed fur seal management policies to 
the 1957 Convention, as amended. Title II dealt with the 
management of the Islands' municipal affairs. The Act directed 
the Secretary to convey a town site, subject to payment, on St. 
Paul once it was determined that a self-governing community 
existed there. No municipal government was chartered until 1971 
when St. Paul became a fourth-class Alaskan city. St. George 
became a second-class Alaskan city in 1983.
    St. Paul and St. George both established village 
corporations under ANCSA. St. Paul residents established the 
Tanadgusix Corporation (TDX) and St. George established the 
Tanaq Corporation. In 1976, NOAA entered into a Memorandum of 
Understanding with TDX and Tanaq which identified the tracts of 
property the government intended to retain. Under Section 3(e) 
of ANCSA, the government was directed to retain the ``smallest 
practicable tracts enclosing land actually used in connection 
with the administration of a Federal installation.'' However, 
ANCSA conveyed to the Native corporations rights to the core 
township lands on which each village was located. This 
established a conflict between the 1966 Fur Seal Act and ANCSA. 
However, given the choice of buying their land or having it 
conveyed at no cost under ANCSA, the St. Paul residents voted 
to receive land under ANCSA, and the Department of the Interior 
ruled that ANCSA preempted the earlier law. By 1983, each 
Island was home to an IRA tribal council, a municipal 
government, and a village corporation. TDX received the right 
to select 138,240 acres of land in the Aleutians, on the Alaska 
Peninsula and on St. Paul. Ultimately, 113,000 acres have been 
conveyed to TDX. Tanaq received an entitlement of 115,200 
acres, of which 106,000 acres were ultimately conveyed.
    In 1970, the BCF became part of the newly formed National 
Oceanic and Atmospheric Administration (NOAA) within the 
Department of Commerce. Within NOAA, responsibility for marine 
mammal management was delegated to the National Marine 
Fisheries Service.
    Upon the recommendation of the Fur Seal Commission in 1973, 
St. George was set aside as a reserve and no further sealing 
was conducted on the island. The Commission wanted to compare a 
fur seal population which faced hunting pressure with one that 
did not.

                         Federal Transfer Plan

    By 1983, the fur seal harvest had diminished, but federal 
expenditures on the Islands had risen to $6.3 million annually. 
NOAA estimates that 95 percent of those expenditures were for 
municipal and social services. NOAA proposed a scheme to 
transfer municipal operations on the Islands to local control, 
and end the federal subsidy. NOAA Administrator Anthony J. 
Calio best laid out this plan in a November 1, 1982, letter to 
all Island residents. This letter states:

          To ensure a smooth transition and to foster 
        development of a new and expanded economic base, [NOAA] 
        propose[s] to provide a one-time payment of $20 
        million, to be placed in trust, which will provide you 
        with the resources necessary for general community 
        expenses during the interim period, as well as working 
        capital so badly needed for economic development * * *. 
        As you know, harbor facilities will be vital to the 
        success of your efforts to establish a viable economic 
        base. In order for our proposal to be successful, we 
        must have assurance of State of Alaska] support for 
        these harbor facilities. The proposed $20 million fund 
        is contingent on a firm State commitment * * *. The 
        National Marine Fisheries Service has substantial 
        property holdings on the Islands. [NOAA] propose[s] to 
        transfer this property, with a few exceptions, * * * to 
        the Islands. In the future, community and municipal 
        services will be provided by Island organizations, and 
        this property, which includes land, buildings, 
        equipment and supplies, is vital to the provision of 
        such services. Under [the NOAA] proposal, the Islands 
        would be responsible for conducting the annual seal 
        harvest and for the associated marketing of the seal 
        skins. To assure the long-term success of this effort, 
        we will provide all resources needed to conduct the 
        1983 harvest. Commencing in 1983 all [U.S. shares of] 
        skins, seals and byproducts * * * will belong to the 
        Islanders and when sold should provide you with the 
        resources needed to successfully conduct future 
        harvests * * *. The phaseout of the Pribilof Islands 
        Program will significantly reduce associated Federal 
        jobs. We would expect some of these jobs would 
        naturally transfer to the Island-operated seal harvest 
        and marketing and for the provision of Island services. 
        During the harbor facility construction period, we can 
        foresee many employment opportunities and once the 
        fishing or other industries come on line, job 
        possibilities should expand significantly.

    A Memorandum of Intent signed by Calio and Island leaders 
was also included with this letter. This memorandum states: 
``The parties hereto recognize the State of Alaska's 
appropriation of the monies necessary to construct boat harbors 
on St. Paul and St. George Islands * * * is an indispensable 
contribution to achieving the goal of self-sufficiency on the 
Pribilof Islands.''
    Administrator Calio also described this plan in May 19, 
1983, testimony before the Merchant Marine and Fisheries 
Committee on H.R. 2840, an Administration-drafted bill to 
provide for the orderly termination of federal management of 
the Pribilof Islands. He stated the NOAA proposal which was 
reflected in the bill would, ``create a $20 million fund to 
replace annual Federal appropriations which, when combined with 
a state initiative to construct harbors on both islands, would 
give the Pribilovians the resources needed to make the 
transition to a self-sustaining economy; to transfer most real 
and personal property owned by the Federal Government to the 
islanders; to transfer responsibility for the fur seal harvest 
to the islanders; and to help the islanders get job training.'' 
Later in that testimony he again reiterated the importance of 
harbor construction to the success of this scheme, when he 
said, ``The transfer of Federal property on the islands and the 
appropriation of the $20 million, in concert with State 
contributions for the construction of harbors on each island, 
will give the Pribilovians the unique opportunity to develop a 
diversified and enduring economy.''
    The State of Alaska also testified at that hearing. The 
State witness made clear that, though the Governor had 
requested $10.4 million for harbor construction, those funds 
had not been approved and might not be sufficient to complete 
the harbor projects even if approved. The State also noted 
that:

        given the checkered history of the Federal Government's 
        relationship to the Pribilovians, there is a moral if 
        not legal obligation that should not be overlooked * * 
        * [W]e perceive the conception that the State of Alaska 
        will simply fill the void created by the Federal 
        Government's abrupt departure. We can make no such 
        commitment * * * [T]he economic, social and 
        infrastructure requirements of the Pribilofs are 
        immense * * * [T]he Federal Government must be willing 
        to upgrade existing facilities to minimum State health 
        and safety standards.

    On October 14, 1983, the Fur Seal Act Amendments of 1983 
(Public Law 98-129) were enacted based on NOAA's proposed plan.
    The 1983 Fur Seal Act Amendments required NOAA to appoint a 
trustee; enter into a Transfer of Property Agreement (TOPA) 
with the local entities; continue to administer retirement 
benefits; and continue to manage the seal rookeries according 
to the Fur Seal Convention. The trust fund agreement was signed 
on November 21, 1983. As requested by the people of St. George, 
the fund was divided into two separate parts, with the fund for 
St. Paul being established on March 14, 1984, and that for St. 
George being established on March 27, 1984. According to a 
formula determined by the Secretary of Commerce, the monies 
were divided into $12 million for St. Paul and $8 million for 
St. George. Because a portion of the trust fund monies had to 
be diverted from its intended purpose to pay for harbor 
development, St. Paul received a supplemental trust fund 
appropriation of $3 million, and St. George received an 
additional $3.7 million. Under the 1983 amendments, the State 
assumed responsibility for public education on the Islands and 
the Secretary of Health and Human Services was given 
responsibility for providing medical and dental services.

A. Harbor construction

    By 1986, St. Paul had a 750-foot breakwater and a 200-foot 
dock. This development used a significant amount of the $7 
million appropriated by the State. Unfortunately, these 
structures were badly damaged during storms. Additional funds 
were needed to develop a usable harbor. Therefore, St. Paul 
applied to the Army Corps of Engineers to construct a larger 
harbor, breakwater and dock. The dimensions were established in 
a 1979 Corps study, which also called for a channel to be 
dredged down to 23 feet below mean low water. The City of St. 
Paul's request was approved in 1988 under the Water Resources 
Development Act. The federal government provided over $19.6 
million for the project in 1989. State and local funds were 
used to pay the cost of items of local cooperation. In 1996, 
Congress authorized an additional $18.9 million in harbor 
improvements. Today the harbor is functioning, and several crab 
processing facilities are located there. Unfortunately, a 
collapse of the opilio Tanner crab fishery lead to a 75 percent 
reduction in processing in 2000, and will likely lead to a 
total closure of the fishery in 2001.
    As for St. George, in 1984, the Island gained State 
approval and initial funding to construct a harbor, but the 
State funding was ultimately reduced from $3 million to $1 
million. The Army Corps of Engineers provided $4 million in 
dredging assistance in 1988, and an additional $3 million in 
1993. Despite these expenditures, and significant expenditures 
by the City, the St. George harbor project remains incomplete. 
The City also owes the Army Corps of Engineers $1.1 million to 
reimburse cost overruns.

B. Property transfers and clean up

    Pursuant to Section 205 of the 1983 Fur Seal Act 
Amendments, NOAA entered into a Transfer of Property Agreement 
with the municipal governments, village corporations and tribal 
councils on the Islands and the State of Alaska to receive a 
portion of the property that was originally scheduled to be 
retained by NOAA. This agreement has withstood a court 
challenge, and most of the property has been transferred.
    Residents of the Pribilofs and the State of Alaska have 
been working with NOAA to resolve concerns over the cleanup of 
contaminated federal property that has been or is scheduled to 
be transferred. NOAA and the State of Alaska signed the 
Pribilof Islands Environmental Restoration Agreement (Two Party 
Agreement). However, the Pribilovians continue to have concerns 
about the scope and timeliness of cleanup efforts. The State 
also raised concerns about the pace of the cleanup. In the 
first half of 1999, the State found NOAA in violation of the 
Two Party Agreement. To remedy those deficiencies, NOAA 
transferred responsibility for the cleanup effort to its Office 
of Response and Restoration. By the end of 1999, the State 
determined that NOAA was again in compliance with the 
Agreement.
    Between 1993 and 1995, extensive discussions were 
undertaken between Alaska's Congressional representatives, 
representatives of the Pribilof Island entities, and NOAA. The 
Pribilovians maintained that the 1983 transition process had 
failed and that NOAA was not making sufficient efforts to 
resolve environmental pollution problems related to the federal 
government's reign on the Islands. NOAA maintained it had met 
all its applicable legal responsibilities.
    To clarify NOAA's legal responsibilities and determine the 
full scope of the Pribilovians concerns, Congress enacted 
Section 3 of Public Law 104-91 in 1996. Section 3 requires NOAA 
to remedy environmental contamination on property that it has 
or will transfer, prohibits any effort to require a financial 
contribution toward that cleanup from the Islands' residents, 
and directs the use of local entities in the cleanup wherever 
practicable. It also directs NOAA to submit a report to 
Congress proposing necessary actions to resolve all claims and 
permit final implementation of Title II of the Fur Seal Act, 
land conveyances on the Pribilofs, and the cleanup provisions 
contained in Section 3. As part of the report, NOAA was 
required to include any statements of claims or recommendations 
submitted by the Pribilovians. These claims were submitted and 
the Department of Commerce submitted its report to Congress in 
March 1997.
    Claims were filed on:
    (1) the failure of NOAA to develop an adequate private 
economy on the Islands. The provisions of the 1983 Fur Seal 
Amendments state that the trust funds were established ``to 
promote the development of a stable, self-sufficient enduring 
and diversified economy not dependent on sealing.'' NOAA denies 
any ongoing obligation to promote economic development on the 
Islands, to repair houses that were transferred under ANCSA or 
the 1983 Fur Seal Act Amendment, or to pay the cost of 
providing municipal infrastructure that was adequate to meet 
the Islands' needs and meet code standards;
    (2) the failure of the transition to a private economy. The 
Pribilovians maintain that the federal government failed to 
build the harbors, eliminated fur seal harvests, and failed to 
administer the transition properly. NOAA maintains that it met 
its obligations under the 1983 Fur Seal Act Amendments;
    (3) the distribution of real property. The courts are now 
reviewing the 1983 TOPA;
    (4) the use, adequacy and purpose of the trust. NOAA 
maintains it has carried out its obligations under the 1983 Fur 
Seal Act Amendments;
    (5) the distribution of access to fishery resources in 
Bering Sea. Fishery resources are managed under the Magnuson-
Stevens Fishery Conservation and Management Act, and are beyond 
the scope of the report requested by Congress;
    (6) the subsistence fur seal harvest and the continued 
management of fur seal rookeries. NOAA is concerned about the 
impact of economic development on fur seal populations, and 
maintains that the subsistence harvest is being implemented 
fairly in accordance with the 1983 Fur Seal Act Amendments;
    (7) federal retirement benefits. NOAA is continuing to 
educate the Pribilovians on the federal retirement program as 
it applies to workers on the Pribilofs, and to resolve 
individual problems on a case-by-case basis; and
    (8) environmental cleanup. Pribilof residents maintain that 
NOAA has extensive cleanup responsibilities under Section 3 of 
Public Law 104-91 that are not being met. NOAA maintains that 
it is working to complete cleanup under the Two Party 
Agreement, and is taking necessary environmental compliance 
actions on the property it intends to retain.

                               H.R. 3417

    As required under the 1983 Fur Seal Act Amendments, the 
federal government did create and fund the $20 million Trust 
Fund, but the State of Alaska did not commit to fund 
construction of harbors on the Islands beyond monies already 
included in the State budget. Real and personal property has 
been transferred by the federal government, but the 
municipalities maintain that it failed to meet the Islands' 
public infrastructure needs. In 1984, the Senate failed to 
extend the Fur Seal Treaty, thus ending fur seal harvests. In 
other words, three of the four elements of the transfer plan 
failed--the harbors were not built in a timely fashion, the 
infrastructure needed to conduct municipal business was 
inadequate and no income was available from fur sealing. 
Without the other components in place, the $20 million Trust 
Fund was used for harbor construction, infrastructure repair 
and replacement, and social needs. This delayed the development 
of a self-sufficient economy on the Islands.
    It is clear that the failure to construct harbors on the 
Islands in a timely manner meant failure of the transition 
scheme laid out by NOAA and adopted by Congress in 1983. To 
make good on the 1983 commitments, H.R. 3417 provides 
additional resources to the Pribilovians. The bill also sets 
out the terms under which NOAA will terminate its non-fur seal 
management responsibilities on the islands.
    In an effort to foster the independence of the Pribilof 
communities from federal agency oversight, the Committee has 
chosen not to specify how this assistance is to be used. 
However, the Committee urges the entities that receive 
assistance under this bill to review their current financial 
situations and develop realistic long range plans. If the funds 
are used to meet daily expenses rather than to make long-term 
investments, it would not be in the best interest of Island 
residents. The Committee urges the entities to work together to 
leverage the greatest possible benefit from the funds provided.

                      Section-by-Section Analysis


Section 1. Short title

    The short title of this Act is the Pribilof Islands 
Transition Act.

Section 2. Purpose

    The purpose of this Act is to complete the orderly 
withdrawal of the National Oceanic and Atmospheric 
Administration (NOAA) from the civil administration of the 
Pribilof Islands, Alaska.

Section 3. Financial assistance for Pribilof Islands under Fur Seal Act 
        of 1966

    Section 3 amends the Fur Seal Act and authorizes several 
types of economic assistance for the Pribilof Islands. The 
Secretary of Commerce is authorized to provide assistance to 
local entities on the Pribilof Islands, including city 
governments, village corporations, and tribal councils (the 
entities). This section restricts the use of the funds by the 
Secretary for debt settlement, administrative or overhead 
expenses, or for contributions to federal agencies. In 
addition, this section directs the Secretary to use funding 
instruments and procedures that are equivalent to the 
instruments and procedures required to be used by the Bureau of 
Indian Affairs pursuant to title IV of the Indian Self-
Determination and Education Assistance Act.
    This section authorizes $28 million for grants to the 
tribal council, village corporation, and city government on 
each Island. The grants will be distributed each fiscal year in 
the same proportions in which the amounts are authorized for 
the entities. Grants received under this section may be used as 
non-federal matching funds for other federal programs that 
require such funds; however, this section specifically 
prohibits lobbying activities with any of the funds provided 
under H.R. 3417.
    This section also authorizes the Secretary to provide 
assistance to the State of Alaska to open or redevelop solid 
waste disposal facilities on the Islands. This section 
authorizes such sums as are necessary for each of Fiscal Years 
2001, 2002 and 2003 to allow the Secretary to provide 
assistance to the State of Alaska to build, design, site or 
redevelop solid waste management facilities on the Islands. 
This section also provides NOAA with immunity from liability 
associated with or resulting from providing assistance to the 
State of Alaska for solid waste management facilities.

Section 4. Disposal of property

    Section 4 amends Section 205 of the Fur Seal Act of 1966 to 
require the Secretary to submit a report to Congress within 
three months of enactment that describes the status of property 
that was to have been transferred from federal ownership to 
local control under a variety of agreements and laws,and 
identifies all properties that will be retained by the federal 
government. This section also strikes a subsection of the Fur Seal Act 
that previously required a report to be submitted to Congress.

Section 5. Termination of responsibilities

    Section 5 terminates any future federal government 
responsibility to provide economic development assistance, 
above and beyond what is expected for other communities 
throughout the United States, to the Pribilof Islands entities, 
with the exception of previously identified causes of action. 
Section 5 also terminates the federal government's 
responsibilities to remediate contamination of properties that 
are transferred to the local entities on the Pribilof Islands. 
The termination of the federal government's responsibilities 
occurs on the date that the federal government meets its 
responsibility for environmental cleanup under the Two Party 
Agreement and Section 3(a) of Public Law 104-91, all properties 
can be unconditionally offered for transfer, and the Secretary 
has obligated all of the funds that are authorized for grants 
to local entities.
    This section allows the federal government to seek 
financial contribution from the Pribilof Islands entities for 
costs incurred to remediate environmental contamination caused 
by those entities.
    This section reserves certain rights for NOAA including the 
right for continued access to transferred property to conduct 
environmental monitoring and for operation and eventual closure 
of treatment facilities.

Section 6. Technical and clarifying amendments

    Section 6 makes technical and clarifying changes to Public 
Law 104-91 and the Fur Seal Act.

Section 7. Authorization of appropriations

    Section 7 provides additional authorization to carry out 
environmental cleanup activities on the Pribilof Islands. It 
allows a portion of the cleanup funds to be used by the State 
to establish a low interest loan program to clean up asbestos, 
lead paint, and petroleum contamination from underground 
storage tanks. This section also amends Public Law 104-91 by 
reauthorizing appropriations for Fiscal years 2001, 2002 and 
2003.

                            Committee Action

    H.R. 3417 was introduced on November 17, 1999, by 
Congressman Don Young (R-AK). The bill was referred to the 
Committee on Resources, and within the Committee to the 
Subcommittee on Fisheries Conservation, Wildlife and Oceans. On 
July 29, 1999 the Subcommittee held a hearing on draft 
legislation that was a precursor to H.R. 3417. On March 15, 
2000, the Full Resources Committee met to consider H.R. 3417. 
The Subcommittee on Fisheries Conservation, Wildlife and Oceans 
was discharged from further consideration of the bill by 
unanimous consent. Mr. Young offered an amendment in the nature 
of a substitute that authorized grants to the village 
corporations, municipal governments and tribal councils on the 
two Islands, and to the State of Alaska to construct new solid 
waste management facilities; specified the actions that NOAA 
has to take to terminate its civil administration 
responsibilities on the Islands; clarified that NOAA cannot 
reduce the grant amounts to pay for administrative or overhead 
expenses, that NOAA has no liability for facilities built by 
the State, that partial appropriations will be prorated to the 
Native groups based on the overall division specified in the 
bill, that NOAA may not charge local groups to clean up 
environmental pollution left by them, but may charge the groups 
to clean up pollution generated by a local group; and assured 
NOAA access to property that it will retain for the purpose of 
managing fur seal rookeries. The amendment 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 and Article IV, section 3 of the 
Constitution of the United States grant 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, April 3, 2000.
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. 3417, the Pribilof 
Islands Transition Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Deborah Reis.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 3417--Pribilof Islands Transition Act

    Summary: Assuming appropriation of the necessary amounts, 
CBO estimates that implementing H.R. 3417 would cost the 
federal government about $67 million over the next five years. 
The bill would not affect direct spending or receipts; 
therefore, pay-as-you-go procedures would not apply. H.R. 3417 
contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act (UMRA). The bill 
would benefit local governments and native corporations of the 
Pribilof Islands by authorizing funds for financial assistance, 
environmental cleanup, and construction of new facilities.
    H.R. 3417 would authorize the appropriation of a total of 
$58 million over the next three fiscal years. Under the bill, 
the National Oceanic and Atmospheric Administration (NOAA) 
would pay $28 million in 2001 for financial assistance to local 
governments and native corporations of the Pribilof Islands in 
Alaska. NOAA would use $10 million annually for fiscal years 
2001, 2002, and 2003 to finish environmental cleanup of the 
islands. Up to $2 million annually (of the $10 million) could 
be provided to Alaska to capitalize a revolving fund, which 
would be used to finance loans to local governments for cleanup 
of other environmental problems. In addition to the $58 million 
specifically authorized to be appropriated, the bill would 
authorize the appropriation of whatever sums are necessary for 
the development and construction of solid waste management 
facilities on the islands.
    Other provisions of H.R. 3417 address the disposal of 
federal property on the islands (which is already authorized 
under existing law) and limit the federal government's 
liability and responsibility for previous and future actions. 
CBO estimates that these provisions would have no impact on the 
federal budget.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of H.R. 3417 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).

------------------------------------------------------------------------
                                       By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2001    2002    2003    2004    2005
------------------------------------------------------------------------
                    SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...      40      17      10       0       0
Estimated Outlays...............      37      16      10       3       1
------------------------------------------------------------------------

    Basis of estimate: For purposes of this estimate, CBO 
assumes that H.R.. 3417 will be enacted during fiscal year 2000 
and that the entire amounts specifically authorized or 
estimated to be necessary will be appropriated for each fiscal 
year beginning in 2001. In each year the authorization levels 
include $10 million for environmental cleanup as authorized by 
section 7. The 2001 authorization level includes the entire $28 
million specified for local assistance and an estimated $2 
million for planning and design of solid waste facilities. The 
2003 authorization levels includes $7 million for construction 
of these facilities. The $9-million total cost of this project 
is estimated on the basis of information provided by NOAA. We 
assume that the agency would transfer this amount to the state, 
which would carry out the project, in two payments.
    Outlays for environmental cleanup have been estimated on 
the basis of historical patterns for similar activities. 
Outlays for local financial assistance and funding for the 
solid waste facility are assumed to be paid directly to state 
and local authorities in the year appropriated.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 3417 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. The bill would benefit local governments and 
native corporations of the Pribilof Islands by authorizing 
funds for financial assistance, environmental cleanup, and 
construction of new facilities. The bill would impose no costs 
on any other state, local, or tribal governments.
    Estimate prepared by: Federal Costs: Deborah Reis. Impact 
on State, Local, and Tribal Governments: Marjorie Miller. 
Impact on the Private Sector: Keith Mattrick.
    Estimate approved by: Peter H. Fontaine, Deputy 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 any 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):

                      THE ACT OF NOVEMBER 2, 1966


AN ACT To protect and conserve the North Pacific fur seals, to provide 
  for the administration of the Pribilof Islands, to conserve the fur 
 seals and other wildlife on the Pribilof Islands, and to protect sea 
otters on the high seas.

           *       *       *       *       *       *       *


SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Fur Seal Act of 1966''.

           *       *       *       *       *       *       *


            TITLE II--ADMINISTRATION OF THE PRIBILOF ISLANDS

  Sec. 201. The Secretary shall administer the fur seal 
rookeries and other Federal real and personal property on the 
Pribilof Islands, with the exception of lands purchased by the 
U.S. Fish and Wildlife Service under section 1417 of the Alaska 
National Interest Lands Conservation Act (Public Law 96-487) or 
acquired or purchased by any other authority after enactment of 
the Fur Seal Act Amendments of 1983 and, in consultation with 
the Secretary of the Interior, shall ensure that activities [on 
such Islands] on such property are consistent with the purposes 
of conserving, managing, and protecting the North Pacific fur 
seals and other wildlife and for other purposes consistent with 
that primary purpose.

           *       *       *       *       *       *       *

  Sec. 205. (a) * * *

           *       *       *       *       *       *       *

  [(c) Within 60 days of the transfer of real or personal 
property specified in the document described in subsection (a), 
the Committee on Merchant Marine and Fisheries of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate shall be given a report prepared 
by the Secretary stating the fair market value at the time of 
the transfer of all real and personal property conveyed.]
  (c) Not later than 3 months after the date of enactment of 
the Pribilof Islands Transition Act, the Secretary shall submit 
to the Committee on Commerce, Science, and Transportation of 
the Senate and the Committee on Resources of the House of 
Representatives a report that includes--
          (1) a description of all property specified in the 
        document referred to in subsection (a) that has been 
        conveyed under that subsection;
          (2) a description of all Federal property specified 
        in the document referred to in subsection (a) that is 
        going to be conveyed under that subsection; and
          (3) an identification of all Federal property on the 
        Pribilof Islands that will be retained by the Federal 
        Government to meet its responsibilities under this Act, 
        the Convention, and any other applicable law.

           *       *       *       *       *       *       *

  [(g) The Secretary shall submit to Congress a report, no 
later than October 1, 1983, providing information on the status 
of the negotiations for concluding the documents described in 
subsections (a) and (d) of this section.
  [Sec. 206. (a)(1) In order to promote the development of a 
stable, self-sufficient enduring and diversified economy not 
dependent on sealing, the Secretary shall cause to be 
established a Trust for the benefit of the Natives of the 
Pribilof Islands, to be known as the ``Pribilof Islands Trust'' 
(hereinafter referred to as the ``Trust'').
  [(2) All amounts appropriated to the Secretary under 
subsection (e) of this section shall be transferred by the 
Secretary to the Trust within fifteen days after submission of 
the Trust instrument to Congress in accordance with the 
requirements of subsection (c).
  [(3) Except as provided in subsection (e)(2), none of the 
amounts transferred to the Trust pursuant to paragraph (2) 
shall be distributed by the trustee or trustees for the benefit 
of the Natives of the Pribilof Islands until 30 days after 
submission to Congress of the documents described in section 
205 (a) and (d). Such distributions shall be made by the 
trustee or trustees only after the Secretary has determined 
that such Trust has been established and will be operated in 
accordance with a trust instrument, or instruments, approved by 
the Secretary which further the purposes and policies of this 
Act.
  [(4) Until the termination of the period described in 
paragraph (3), the trustee or trustees shall invest the amounts 
transferred pursuant to paragraph (2) in securities with 
maturities suitable for the needs of the Trust, bearing 
interest rates at rates determined by the trustee or trustees, 
taking into consideration average market yields on outstanding 
marketable obligations of the United States of comparable 
maturities. The income from such investments shall be credited 
to, and form a part of the Trust.
  [(b) The Trust shall be administered in accordance with such 
terms and conditions as are prescribed by the Secretary, and as 
set forth in the Trust instrument. In establishing such terms 
and conditions, the Secretary shall consult with the Natives of 
the Pribilof Islands, and other interested parties concerning 
the conservation, management and protection of the fur seal 
population.
  [(c) There may be one Trust instrument establishing the Trust 
described in section 206(a), or two such instruments, each 
relating to one of the two portions of the Trust as provided in 
subsection (d), which shall address, but need not be limited 
to, such matters as--
          [(1) establishing standards and procedures for the 
        disbursement by the trustee or trustees of Trust assets 
        for purposes of fostering in the Pribilof Islands a 
        stable, diversified, and enduring economy not dependent 
        upon sealing after Federal management of the islands is 
        terminated, which procedures may include formal 
        participation of Pribilof Islands Native councils, 
        corporations, or other such entities;
          [(2) establishing the Secretary as trustor;
          [(3) establishing the procedure for appointment of 
        the trustee or trustees by the Secretary after 
        consultation with the Natives of the Pribilof Islands;
          [(4) setting forth the rights, duties, powers and 
        obligations of a trustee who shall act as an 
        independent fiduciary and who shall be a United States 
        citizen having recognized competence in business;
          [(5) providing for the management and investment of 
        Trust assets, pending distribution, by an investment 
        manager or advisor, who may be the trustee, having 
        recognized competence in such fields;
          [(6) establishing methods and procedures for 
        providing Congress and the Secretary with the annual 
        reports described in subsection (g) of this section;
          [(7) establishing Trust purposes in accordance with 
        the purposes described in section 201 of this Act and 
        subsection (a) of this section;
          [(8) the duties of the trustee or trustees and the 
        standards of care and diligence that shall govern the 
        exercise of trust powers thereunder;
          [(9) compensation of the trustee or trustees;
          [(10) the term, termination and final distribution of 
        the Trust estate;
          [(11) mandating the applicability of the laws of the 
        State of Alaska to the creation and governance of the 
        Trust;
          [(12) defraying of community expenses; and
          [(13) payment of necessary administrative and legal 
        expenses. The Trust instrument or instruments described 
        in this subsection shall be submitted to Congress on or 
        before October 14, 1983.
  [(d) The Trust shall be divided into two portions pursuant to 
a formula established by the Secretary after consultation with 
the natives of both Islands, to be accounted for separately for 
the independent benefit of the community of St. Paul and the 
community of St. George.
  [(e)(1) There are authorized to be appropriated to the 
Secretary $20,000,000 for the purpose of funding the Trust in 
accordance with the requirements of subsection (a)(2) of this 
section.
  [(2) Prior to the termination of the period described in 
subsection (a)(3) of this section, the trustee or trustees may 
make interim distributions for the benefit of the Natives of 
the Pribilof Islands, upon approval of the Secretary, of up to 
five percent of the amounts transferred to the Trust pursuant 
to subsection (a)(2) of this section if, as determined by the 
Secretary, such interim distributions are required to carry out 
the purposes of this Act.
  [(f) The interest on, and the proceeds from the sale or 
redemption of, any asset or obligation held in the Trust shall 
be credited to and form a part of the Trust.
  [(g) The trustee or trustees shall submit to Congress and to 
the Secretary an annual report, the first of which is due on 
April 30, 1984, and subsequent reports on the same date each 
year thereafter during the life of the Trust, providing 
information on expenditures made from the Trust and progress 
towards achieving the purposes set out in subsection (a) of 
this section. On April 30, 1986, the Secretary shall also 
submit a report to the Congress detailing all progress toward 
achieving these purposes since enactment of this Act. For 
purposes of preparing such report, the Secretary by regulation 
may require that the trustee and the State of Alaska submit 
such relevant information to the Secretary as he deems 
appropriate.
  [(h) The funds appropriated to the Trust and the earnings and 
distribution therefrom shall not be subject to any form of 
Federal, State or local taxation: Provided, That this exemption 
shall not apply to any income from the investment or other use 
of such distributions.]

SEC. 206. FINANCIAL ASSISTANCE.

  (a) Grant Authority.--
          (1) In general.--Subject to the availability of 
        appropriations, the Secretary shall provide financial 
        assistance to any city government, village corporation, 
        or tribal council of St. George, Alaska, or St. Paul, 
        Alaska.
          (2) Use for matching.--Notwithstanding any other 
        provision of law relating to matching funds, funds 
        provided by the Secretary as assistance under this 
        subsection may be used by the entity as non-Federal 
        matching funds under any Federal program that requires 
        such matching funds.
          (3) Restriction on use.--The Secretary may not use or 
        withhold financial assistance authorized by this Act--
                  (A) to settle any debt owed to the United 
                States;
                  (B) for administrative or overhead expenses; 
                or
                  (C) for contributions authorized under 
                section 5(b)(3)(C) of the Pribilof Islands 
                Transition Act.
          (4) Funding instruments and procedures.--In providing 
        assistance under this subsection the Secretary shall 
        use funding instruments and procedures that are 
        equivalent to the instruments and procedures required 
        to be used by the Bureau of Indian Affairs pursuant to 
        title IV of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450 et seq.), so as to foster 
        maximum flexibility in the local administration of such 
        assistance.
          (5) Pro rata distribution of assistance.--In any 
        fiscal year for which less than all of the funds 
        authorized under subsection (c)(1) are appropriated, 
        such funds shall be distributed under this subsection 
        on a pro rata basis among the entities referred to in 
        subsection (c)(1) in the same proportions in which 
        amounts are authorized by that subsection for grants to 
        those entities.
  (b) Solid Waste Assistance.--Subject to the availability of 
appropriations, the Secretary shall provide assistance to the 
State of Alaska for designing, locating, constructing, 
redeveloping, permitting, or certifying solid waste management 
facilities on the Pribilof Islands necessitated by the National 
Oceanic and Atmospheric Administration's administration of the 
islands under the Fur Seal Act of 1966 to be operated under a 
permit issued by the State of Alaska under section 46.03.100 of 
the Alaska Statutes.
  (c) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary--
          (1) for assistance under subsection (a)--
                  (A) $9,000,000, for grants to the city of St. 
                Paul;
                  (B) $6,300,000, for grants to the Tanadgusix 
                Corporation;
                  (C) $1,500,000, for grants to the St. Paul 
                Tribal Council;
                  (D) $6,000,000, for grants to the city of St. 
                George;
                  (E) $4,200,000, for grants to the St. George 
                Tanaq Corporation; and
                  (F) $1,000,000, for grants to the St. George 
                Tribal Council; and
          (2) for assistance under subsection (b), such sums as 
        may be necessary for each of fiscal years 2001, 2002, 
        and 2003.
  (d) Limitation on Use of Assistance for Lobbying 
Activities.--None of the funds authorized by this section may 
be available for any activity a purpose of which is to 
influence legislation pending before the Congress, except that 
this subsection shall not prevent officers or employees of the 
United States or of its departments, agencies, or commissions 
from communicating to Members of Congress, through proper 
channels, requests for legislation or appropriations that they 
consider it necessary for the efficient conduct of public 
business.
  (e) Immunity From Liability.--The Department of Commerce and 
the National Oceanic and Atmospheric Administration shall not 
have any liability under this Act associated with or resulting 
from the designing, locating, contracting for, redeveloping, 
permitting, certifying, operating, or maintaining any solid 
waste management facility on the Pribilof Islands as a 
consequence of having provided assistance to the State of 
Alaska under subsection (b).

           *       *       *       *       *       *       *

  Sec. 212. Notwithstanding any other law to the contrary, the 
Secretary of Commerce shall, to the maximum extent practicable, 
carry out activities under subsection (a) and fulfill other 
obligations under Federal and State law relating to the 
Pribilof Islands, through grants or other agreements with local 
entities and residents of the Pribilof Islands, unless 
specialized skills are needed for an activity, and the 
Secretary specifies in writing that such skills are not 
available through local entities and residents of the Pribilof 
Islands.
                              ----------                              


                SECTION 3 OF THE ACT OF JANUARY 6, 1996

     AN ACT To require the Secretary of Commerce to convey to the 
  Commonwealth of Massachusetts the National Marine Fisheries Service 
   laboratory located on Emerson Avenue in Gloucester, Massachusetts.

SEC. 3. PRIBILOF ISLANDS.

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Resolution of Federal Responsibilities.--(1) Within 9 
months after the date of enactment of this section, and after 
consultation with the Secretary of the Interior, the State of 
Alaska, and local entities and residents of the Pribilof 
Islands, the Secretary of Commerce shall submit to the 
Committee on Commerce, Science, and Transportation of the 
Senate, and the Committee on Resources of the House of 
Representatives, a report proposing necessary actions by the 
Secretary of Commerce and Congress toresolve all claims with 
respect to, and permit the final implementation, fulfillment and 
completion of--
          [(A) title II of the Fur Seal Act Amendments of 1983 
        (16 U.S.C. 1161 et seq.);]
          [(B)] (A) the land conveyance entitlements of local 
        entities and residents of the Pribilof Islands under 
        the Alaska Native Claims Settlement Act (43 U.S.C. 1601 
        et seq.);
          [(C)] (B) the provisions of this section; and
          [(D)] (C) any other matters which the Secretary deems 
        appropriate.

           *       *       *       *       *       *       *

  [(d) Use of Local Entities.--Notwithstanding any other law to 
the contrary, the Secretary of Commerce shall, to the maximum 
extent practicable, carry out activities under subsection (a) 
and fulfill other obligations under Federal and State law 
relating to the Pribilof Islands, through grants or other 
agreements with local entities and residents of the Pribilof 
Islands, unless specialized skills are needed for an activity, 
and the Secretary specifies in writing that such skills are not 
available through local entities and residents of the Pribilof 
Islands.]

           *       *       *       *       *       *       *

  (f) Authorization of Appropriations.--There are authorized to 
be appropriated not to exceed $10,000,000 in each of fiscal 
years [1996, 1997, and 1998] 2001, 2002, and 2003 for the 
purposes of carrying out this section.
  (g) Low Interest Loan Program.--
          (1) Capitalization of revolving fund.--Of amounts 
        authorized under subsection (f) for each of fiscal 
        years 2001, 2002, and 2003, the Secretary may provide 
        to the State of Alaska up to $2,000,000 per fiscal year 
        to establish and capitalize a revolving fund to be used 
        by the State for loans under this subsection.
          (2) Low interest loans.--The Secretary shall require 
        that any revolving fund established with amounts 
        provided under this subsection shall be used only to 
        provide low interest loans to Natives of the Pribilof 
        Islands to assess, respond, remediate, and monitor 
        contamination from lead paint, asbestos, and petroleum 
        from underground storage tanks that resulted from 
        National Oceanic and Atmospheric Administration of the 
        Pribilof Islands under the Fur Seal Act of 1966.
          (3) Natives of the pribilof islands defined.--The 
        definitions set forth in section 101 of the Fur Seal 
        Act of 1966 (16 U.S.C. 1151) shall apply to this 
        section, except that the term ``Natives of the Pribilof 
        Islands'' shall include the Tanadgusix and Tanaq 
        Corporations.

                            DISSENTING VIEWS

    It is our understanding that the purpose of this 
legislation would be to complete the orderly withdrawal, on 
behalf of the Federal Government, of the National Oceanic and 
Atmospheric Administration (NOAA) from the civil administration 
of the Pribilof Islands, principally the islands of St. Paul 
and St. George, located in the State of Alaska. We further 
understand that an unstated purpose of this bill would be to 
fulfill the goal of the Fur Seal Act Amendments of 1983 (Pub. 
L. 98-129) which intended ``to promote [on the Pribilof 
Islands] a stable, self-sufficient, enduring, and diversified 
economy * * * that is not dependent on sealing.'' To accomplish 
these purposes, this legislation would authorize $28 million 
for local economic assistance grants. An additional $30 million 
would be authorized to enable NOAA to complete its 
environmental clean-up and land-fill closure obligations prior 
to the final transfer of Federal property to the six local 
entities. Also, the legislation would authorize unspecified 
amounts to be transferred to the State of Alaska for the 
planning and construction of new solid waste management 
facilities; this has been estimated to cost approximately $7 
million to $9 million. In exchange for this final Federal 
assistance, NOAA would complete the transfer of all unnecessary 
Federal properties and be indemnified from any future liability 
or obligation under the Fur Seal Act (Pub. L. 89-702).
    The majority claims that the Federal Government has failed 
to attain the goal of establishing a local, enduring economy on 
the Pribilof Islands, and that this legislation is required to 
rectify that failure. Contrary to that assertion, we contend 
that the economic assistance provided in this bill is no longer 
necessary on St. Paul. Economic assistance has been a stable of 
Federal administration of the Pribilof Islands in order to 
compensate native residents for the cessation of commercial fur 
sealing. According to the March 17, 1997 report on the Pribilof 
Islands filed by the Secretary of Commerce in compliance with 
Public Law 104-91, the Federal government provided financial 
support to the Pribilof Islands from 1973 to 1983 ranging from 
$3.1 to $6.3 million annually. St. Paul Island has received an 
additional $55 million from the Federal government since 1983. 
According the Secretary's 1997 report, the City of St. Paul's 
1994 annual operating budget was $18 million, and the average 
per capita income was $34,000. Moreover, according to 1990 
Census Bureau data, the median income per family on St. Paul 
was $49,000. These numbers compare favorably with national 
income averages; certainly all of them fall above the poverty 
line. Based upon these numbers and the fact that the residents 
of St. Paul Island are active participants in the lucrative 
Bering Sea crab fishery, we question the necessity for 
additional economic assistance to the roughly 700 residents of 
St. Paul.
    A more plausible case for economic assistance can be made 
for the Island of St. George which continues to struggle 
economically. Yet this condition cannot be solely attributed to 
the lack of Federal economic assistance. According to the 
Secretary's 1997 report, in addition to the annual expenditures 
referenced in the preceding paragraph, St. George received 
assistance under the $15 million Aleutian-Pribilof Indian 
settlement of 1990. St. George also received approximately $2 
million in other Federal appropriations in intervening years. 
We believe this indicates that the stagnant local economy 
cannot be attributed solely to a lack of Federal economic 
assistance to the approximately 250 residents of St. George.
    Yet there is a more compelling reason to explain why 
economic conditions on St. George have languished. According to 
the Secretary's 1997 report, the St. George economy has 
remained stagnant not because of scant Federal financial 
assistance, but because of the inability to construct an 
adequate harbor to enable local residents to participate in the 
fishing economy. Since 1983, $19 million in Federal funds and 
other leveraged local capital were spent in unsuccessful 
efforts to dredge and construct a breakwater and harbor on St. 
George. The 1983 amendments and subsequent agreements with the 
native Pribilovians clearly recognized that a transition to a 
stable and enduring local economy would be dependent on the 
construction of viable harbors for each island. Experience 
shows that the construction of a breakwater and dock facility 
on St. Paul was, in fact, central to its economic success. We 
realize that the geographic and environmental conditions on St. 
George pose extreme challenges to building a harbor. We cannot, 
however, ignore the fact that those same conditions were widely 
known in 1983. Supporters of this legislation misconstrue the 
failure to construct a harbor on St. George--a harbor, which in 
all likelihood, is technically and economically infeasible to 
build--to now mean that the Federal government bears an 
enduring obligation to provide economic assistance to the 
Pribilof Islands. This misconception strains all credibility.
    In addition, we ask why should the Federal taxpayer alone 
continue to pay to construct a harbor (or provide economic 
assistance) when the State of Alaska clearly has the capability 
and a similar obligation? Insufficient State support for the 
construction of the harbor on St. George has long been 
recognized as a critical impediment. This point was made clear 
by Mr. Peter Hocson, a former trustee of the St. George Trust, 
when he stated in the 1988 Trust annual report:

         The single obstacle standing in the way of a self-
        sustaining economy, as envisioned by the Fur Seal 
        Amendment Act of 1983, is the lack of the State of 
        Alaska's funding to complete the boat harbor.

    There is no assurance that any of the $28 million in 
economic assistance would be spent to address the single 
biggest limiting factor retarding economic development on one 
of the islands--the construction of a harbor on St. George. 
Even if we were to agree that additional economic assistance is 
warranted, it seems perfectly reasonable to expect that some of 
those dollars should be spent on completing the harbor on St. 
George. And if a harbor must be constructed, its seems only 
fair for the State of Alaska to shoulder an appropriate share 
of that financial burden, too.
    For these reasons, we are concerned that the substantial 
cost for additional economic assistance in this bill appears to 
be unwarranted or potentially mis-directed. No documentation 
has been provided by the majority or other proponents of this 
legislation justifying the need for an additional $28 million 
in economic assistance. Furthermore, no details have been 
provided to explain exactly how the various grant amounts were 
determined, and for what purposes these funds would be spent by 
the local entities to the benefit of the less than 900 native 
residents. Absent any justification, we conclude that these 
authorizations for appropriations are arbitrary approximations 
with no substantive basis. Consequently, we cannot support 
them.
    We agree with the majority that the final transfer of 
authority to civilian administration is long overdue and 
desirable. Prior to the cessation of the Federal involvement, 
we also agree that it is necessary for NOAA to be held to its 
full obligations to ensure that all hazardous materials and 
other environmental contaminants are removed or treated prior 
to transferring properties. Too often, local native communities 
are made to suffer from the past indiscretions of the Federal 
Government. Even in the absence of this legislation, we expect 
from NOAA nothing less than full completion of all of its clean 
up obligations. In this regard, we are supportive for funding 
NOAA's cleanup efforts.
    We are, however, concerned that the cost of this cleanup 
has grown considerably. This legislation would authorize an 
additional $30 million for environmental cleanup and removal, 
plus an unspecified sum to complete the closure of existing 
landfills and to fund the planning and construction of new 
solid waste management facilities. When Public Law 104-91 was 
enacted, Congress was advised by NOAA that the total cost of 
these activities would be roughly $30 million. NOAA 
subsequently has spent $29.1 million to initiate clean-up 
activities. Now we are told an additional $30 to $40 million 
must be forthcoming to complete this cleanup. We are told this 
without a full accounting explaining how these costs could have 
virtually doubled in six years. Furthermore, we have given no 
assurances by anyone that these additional funds, if 
appropriated, would be the last installment needed to fulfill 
this vital obligation. As a result, even though we strongly 
support NOAA's expedited completion of this important work, we 
find it difficult to support the full authorization levels in 
this bill. And because of this uncertainty, we remain 
unconvinced that this legislation will ensure the final orderly 
transition to civilian administration.

                                   George Miller.
                                   Frank Pallone, Jr.
                                   Tom Udall.

                                
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