[Senate Report 106-185]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 319
106th Congress                                                   Report
                                 SENATE
 1st Session                                                    106-185

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



 
          LACKAWANNA VALLEY AMERICAN HERITAGE AREA ACT OF 1999

                                _______
                                

                October 14, 1999.--Ordered to be printed

                                _______


  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 905]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 905) to establish the Lackawanna Valley 
American Heritage Area, having considered the same, reports 
favorably thereon with amendments and an amendment to the title 
and recommends that the bill, as amended, do pass.
    The amendments are as follows:
    1. On page 1, line 5, strike ``American'' and insert 
``National''
    2. On page 3, line 14, strike ``American'' and insert 
``National''
    3. On page 4, line 4, strike ``American'' and insert 
``National''
    4. On page 4, line 23, strike ``American'' and insert 
``National''
    5. On page 5, strike line 25 and all that follows through 
page 6, line 5 and insert ``available under this Act to hire 
and compensate staff.''
    6. On page 6, strike line 1, and all that follows through 
line 5
    7. On page 10, line 19 after the word ``entity;'' insert 
``and''
    8. On page 10, line 21 after the word ``entity'', strike 
all that follows through line 23
    9. On page 11, amend section 7(a) as follows:

    ``(a) Technical and Financial Assistance.--
          ``(1) Provision of assistance.--The Secretary may, at 
        the request of the management entity, provide technical 
        and financial assistance to the management entity to 
        develop and implement the management plan.
          ``(2) Priority in assistance.--In assisting the 
        management entity, the Secretary shall give priority to 
        actions that assist in--
                  ``(A) conserving the significant historical, 
                cultural, and natural resources that support 
                the purpose of the Heritage Area; and
                  ``(B) providing educational, interpretive, 
                and recreational opportunities consistent with 
                the resources and associated values of the 
                Heritage Area.''

    10. Amend the title so as to read: ``To establish the 
Lackawanna Valley National Heritage Area and for other 
purposes.''

                         purpose of the measure

    The purpose of S. 905, as ordered reported, is to establish 
the Lackawanna Valley National Heritage Area in the 
Commonwealth of Pennsylvania, and for other purposes.

                          background and need

    National Heritage Areas and National Heritage Corridors are 
relatively new designations which provide for a voluntary, 
coordinated management structure among the Federal Government, 
State and local governmental entities and affected landowners, 
to assist in local preservation and interpretation efforts. 
National Heritage Areas are not units of the National Park 
System and other than providing technical and limited financial 
assistance to the heritage area, does not require the 
involvement of Park Service personnel or extensive Federal 
funding commitments. No Federal land acquisition is associated 
with the designation of an area as a National Heritage Area. 
The legislation establishing a heritage area designates a local 
``management entity'' to coordinate efforts of the various 
entities involved with the heritage area. In general, the 
authorizing legislation for a heritage area authorizes a 
Federal contribution of $10 million over a 10-year period, 
subject to a requirement that the funds be matched from non-
Federal sources.
    Although the first National Heritage Corridor was 
designated in 1984, the designation of heritage areas has 
significantly increased in the past five years. Of the 18 
National Heritage Areas which have been designated to date, 14 
have been designated since 1994.
    The Lackawanna Valley was the first of ten State heritage 
parks in Pennsylvania. In 1991, the Lackawanna Heritage Valley 
Authority was established and efforts began to formally 
recognize the cultural, historical, natural, and recreational 
values within the region. Federal, State, and local 
governmental agencies, along with local businesses, 
organizations, and individuals jointly developed the ``Plan for 
the Lackawanna Heritage Valley.'' The connection of the 
valley's rich anthracite coal deposits and related industries 
was central theme of the plan.

                          legislative history

    S. 905 was introduced by Senators Santorum and Specter on 
April 28, 1999. The Subcommittee on National Parks, Historic 
Preservation and Recreation held a hearing on S. 905 on July 
29, 1999.
    At its business meeting on September 22, 1999, the 
Committee on Energy and Natural Resources ordered S. 905 
favorably reported, as amended.

                        committee recommendation

    The Committee on Energy and Natural Resources, in open 
business session on September 22, 1999, by a unanimous voice 
vote of a quorum present, recommends that the Senate pass S. 
905, if amended as described herein.

                          committee amendment

    During the consideration of S. 905, the Committee adopted 
several technical clarifying and conforming amendments and an 
amendment to the title. In addition, the amendments delete the 
authority of the management entity to make loans to other 
entities, and delete a provision authorizing the use of Federal 
funds for building surveys from the Historic American Building 
Survey and Historic American Engineering Record.

                      section-by-section analysis

    Section 1 designates the bill's short title as the 
``Lackawanna Valley National Heritage Act of 1999''.
    Section 2(a) contains Congressional findings.
    Subsection (b) states that the purposes of the bill are to: 
(1) foster a close working relationship among all levels of 
government, the private sector and local communities in the 4 
counties in northeastern Pennsylvania in order to conserve 
local heritage and pursue economic opportunities; and (2) 
conserve, interpret, and develop the historical, cultural, 
natural and recreational resources related to the industrial 
and cultural heritage of the 4-county region.
    Section 3 defines key terms used in the bill.
    Section 4(a) establishes the Lackawanna Valley National 
Heritage Area.
    Subsection (b) designates the boundaries as all or part of 
Lackawanna, Luzerne, Wayne and Susquehanna counties in 
Pennsylvania.
    Subsection (c) designates the Lackawanna Heritage Valley 
Authority as the management entity for the Lackawanna Valley 
Heritage Area.
    Section 5 directs the Secretary of the Interior to enter 
into a compact with the management entity. The compact is to 
address the objectives and management of the area including the 
delineation of the boundaries and the proposed conservation and 
interpretation measures to be taken by the partners.
    Section 6(a) authorizes the management entity to use funds 
made available under this Act to hire staff.
    Subsection 6(b)1 directs the management entity to develop a 
management plan.
    Paragraph (2) requires that the plan: (1) consider other 
plans; (2) involve residents, agencies and organizations; and 
(3) include the actions to be undertaken by the partners for 
the protection of heritage area resources.
    Paragraph (3) requires that the plan must specify existing 
and potential funding sources.
    Paragraph (4) specifies that the plan must include: (1) an 
inventory of properties suitable for inclusion in the heritage 
area; (2) recommendations of resource management policies with 
specific mention of cooperative agreements consistent with 
compatible economic viability; (3) a program for implementation 
of the plan with specific mention of plans for restoration and 
construction and commitments from the partners for the first 5 
years of operation; (4) an analysis of ways programs may be 
coordinated; and (5) an interpretation plan.
    Paragraph (5) requires that within 3 years of the enactment 
of the Act, the management plan is to be submitted to the 
Secretary for approval. If it is not submitted by the due date, 
no further grants or assistance may be provided until a plan is 
submitted.
    Subsection (c) spells out the duties of the management 
entity, which include: (1) implementing actions specified in 
the compact and management plan; (2) assisting the partners in 
establishing and maintaining interpretive exhibits, developing 
recreational resources, increasing public awareness and 
restoring historic buildings; (3) encouraging economic 
viability; (4) encouraging local governments to adopt and use 
policies consistent with the management plan; (5) assisting the 
partners to ensure that appropriate signs are placed throughout 
the area; (6) considering the diverse interests of the 
partners; (7) conducting public meetings at least on a 
quarterly basis; (8) submitting substantial amendments to the 
management plan to the Secretary for approval; and (9) 
submitting annual reports to the Secretary outlining 
accomplishments, expenses and income, while making all records 
available for audit (this includes the records of organizations 
receiving funds from the entity).
    Subsection (d) prohibits funds authorized under this Act 
from being used for the acquisition of real property or 
interests in real property. However, there is no prohibition 
against Federal funds obtained under other laws from being used 
for the purposes for which they were authorized.
    Section 7(a) specifies that the Secretary may provide 
technical and financial assistance to the management entity to 
develop and implement the management plan.
    Subsection (b) requires the Secretary, in consultation with 
the Governor of Pennsylvania, to approve or disapprove the 
management plan within 90 days after its receipt by the 
Secretary. If disapproved, the reasons why and recommended 
revisions are to be provided in writing to the management 
entity. If a revised plan is then submitted, the Secretary has 
another 90 days to approve or disapprove of the plan.
    Subsection (c) requires substantial amendments to the plan 
to be reviewed by the Secretary and provides that no funds may 
be spent to implement the amendments until approved by the 
Secretary.
    Section 8 terminates authority for Federal grants and 
assistance on September 30, 2012.
    Section 9 authorizes appropriations of $10 million limited 
to $1 million per fiscal year. Also, the Federal share of the 
cost of activities using assistance or grants cannot exceed 50 
percent of the total cost.

                   cost and budgetary considerations

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office:

S. 905--Lackawanna Valley National Heritage Area Act of 1999

    S. 905 would establish the Lackawanna Valley National 
Heritage Area in Pennsylvania. The bill would direct the 
National Park Service (NPS) to execute an agreement with the 
Lackawanna Heritage Valley Authority (LHVA) authorizing the 
LHVA to manage the heritage area. The bill would require the 
LHVA to develop a management plan for the heritage area, 
including an inventory of resources and recommendations for 
financing, managing, and protecting the area's resources. The 
NPS would provide technical and financial assistance to the 
LHVA and would approve or disapprove the management plan. The 
NPS's authority to assist the LHVA would expire on September 
30, 2012. Finally, the bill would authorize the appropriation 
of $10 million for the heritage area, not to exceed $1 million 
annually.
    Assuming appropriation of the authorized amounts, CBO 
estimates that the NPS would provide the LHVA with $1 million 
for each of fiscal years 2000 through 2009, for a total cost of 
$10 million. (That total could be spread over a period of up to 
13 years.) Such amounts would be used to cover a portion of the 
costs of establishing, operating, and interpreting the heritage 
area. Implementing S. 905 would not affect direct spending or 
receipts; therefore, pay-as-you-go procedures would not apply.
    The bill contains no private-sector mandates as defined in 
the Unfunded Mandates Reform Act (UMRA). S. 905 would impose 
new intergovernmental mandates on the Lackawanna Heritage 
Valley Authority, a public entity, by requiring the development 
of a management plan for the heritage area and certain 
activities to assist local governments and other organizations. 
These requirements would be intergovernmental mandates, as 
defined in UMRA. Based on information provided by the 
authority, CBO estimates that the costs imposed by these 
mandates would be far below the threshold established by that 
act ($50 million in 1996, adjusted annually for inflation). 
Further, the bill would authorize appropriations to cover up to 
50 percent of total spending for these activities. S. 905 would 
impose no costs on other state, local, or tribal governments.
    On August 2, 1999, CBO prepared a cost estimate for H.R. 
940, the Lackawanna Valley National Heritage Area Act of 1999, 
as ordered reported by the House Committee on Resources on July 
21, 1999. H.R. 940 contains provisions on the Lackawanna Valley 
Heritage Area that are similar to those in S. 905 and it also 
would authorize funds for another heritage area.
    The CBO staff contacts are Deborah Reis (for federal costs) 
and Marjorie Miller (for the state and local impact). This 
estimate was approved by Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 905. The bill is not a regulatory measure in 
the sense of imposing Government-established standards of 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from 
enactment of S. 905, as ordered reported.

                        executive communications

    On July 29, 1999, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
the Interior and the Office of Management and Budget setting 
forth executive views on S. 905. These reports had not been 
received at the time the report on S. 905 was filed. When the 
reports become available, the Chairman will request that they 
be printed in the Congressional Record for the advice of the 
Senate. The testimony provided by the National Park Service at 
the Subcommittee hearing follows:

 Statement of Denis P. Galvin, Deputy Director, National Park Service, 
                       Department of the Interior

    Mr. Chairman, thank you for the opportunity to appear 
before your committee today to present the views of the 
Department of the Interior on S. 905, a bill to establish the 
Lackawanna Valley American Heritage Area in northeastern 
Pennsylvania. The heritage area would be located along the 
Lackawanna River in the Pennsylvania counties of Lackawanna, 
Luzerne, Wayne, and Susquehanna.
    The Department supports enactment of this legislation, if 
amended in conformance with this testimony. The Administration, 
however, objects to the proposed loan authority because the 
bill fails to provide criteria or administrative guidelines or 
address the issue of possible liability.
    The bill would establish the Lackawanna Valley American 
Heritage Area (Heritage Area) and designate the Lackawanna 
Heritage Valley Authority (the Authority), an already existing 
state-enabled regional authority, as the management entity for 
the Heritage Area. It would require the Authority to enter into 
a compact with the Secretary of the Interior to establish the 
Heritage Area's boundaries and to outline the goals and 
objectives for the Heritage Area. Within three years of 
enactment of the bill the Authority would submit a management 
plan to the Secretary of the Interior for approval. The 
management plan would inventory the Heritage Area's resources, 
recommend policies for resource management and interpretation, 
and provide a program for plan implementation. If the 
management plan is not submitted to the Secretary within the 
specified time, funding would no longer be authorized. Federal 
funds provided under the Act would enable the Authority to make 
loans and grants and to enter into cooperative agreements with 
the Commonwealth of Pennsylvania and its political 
subdivisions, private organizations and persons for carrying 
out various activities outlined in the bill.
    The bill would also authorize not more than $1,000,000 for 
any fiscal year, and a total of $10,000,000 to be appropriated 
to carry out its purposes, and would require a 50% match for 
each federal dollar. This bill also contains a sunset provision 
that would terminate authority for assistance after September 
2012. Mr. Chairman, the funding levels and matching requirement 
proposed in this legislation are consistent with the levels 
established for the heritage areas in the Omnibus Parks and 
Public Lands Management Act of 1996.
    The Administration has some concerns regarding this 
legislation. We object to the authority in section 6(a)(1) of 
the bill for the management entity to make loans to various 
entities. No criteria or administrative guidelines are 
provided, and possible liability is not addressed. Further, 
such loans would be subject to the Federal Credit Reform Act of 
1990, which has management requirements that would be a 
tremendous burden for the management entity. As currently 
drafted, it is very unclear how the management entity would 
handle repayment of loans to the federal government if there 
are defaults. In effect, this bill would give a non-Federal 
entity authority to act as a Federal credit agency--a precedent 
with unforeseen implications. The Administration strongly 
recommends that the authority to make loans be dropped from the 
bill.
    In section 6(c)(9)(A)(iii) there is a requirement for the 
management entity to report on any loans and grants that have 
been made with federal funds. To conform with our previous 
concern regarding loan authority, loans should be dropped from 
this section of the bill as well.
    Section 7(a)(2)(A) authorizes the Secretary of the Interior 
to expend federal funds on non-federally owned property to 
further the purposes of the Act. Section 7(a)(2)(B) directs 
that the Historic American Building Survey (HABS) and the 
Historic American Engineering Record (HAER) shall conduct 
studies necessary to document the industrial, engineering, 
building, and architectural history of the region. We oppose 
these sections. We feel that the federal funds authorized under 
section 9 of this bill to go to the heritage area's management 
entity are for implementation of their plan so as to address 
these very issues. Any additional funds from the Secretary 
would most likely come from our construction fund or the 
Historic Preservation Fund, neither of which were intended to 
fund heritage areas nor are appropriations sufficient to cover 
the activities of heritage areas. Money for any studies to be 
performed by HABS/HAER should come from a specific heritage 
area's funding as part of its planning process.
    Finally, we recommend changing the name of the heritage 
area. Over the past several years Congress has established a 
number of new heritage areas around the country. To be 
consistent with previous designations we recommend that it be 
named the Lackawanna Valley National Heritage Area and that 
sections 1, 2, 3 and 4 of the bill be amended to reflect this 
recommendation.
    Like other heritage areas established by Congress, this 
legislation would provide national designation to a place where 
natural, cultural, historic, and scenic resources combine to 
form a cohesive, nationally distinctive landscape arising from 
patterns of human activity shaped by geography. At the center 
of the world's most productive anthracite field, the Lackawanna 
Valley fueled the spectacular growth of American cities and 
industry for almost one hundred and fifty years. In the 
process, the landscape and culture of the valley was 
transformed.
    In the Lackawanna Valley the extraction, processing and 
delivery of coal were combined with the development of a very 
diverse, integrated industrial complex in an urban setting. 
Today, a mix of nationally, regionally and locally significant 
sites, reflecting both industry and the community remain to 
illustrate an important chapter in United States history. This 
legislation would further assist in identifying and conserving 
these diverse resources without adversely impacting the 
economic growth and stability of the region.
    Congressional appropriations have directed the National 
Park Service to provide funding and technical assistance to the 
Lackawanna Heritage Valley for almost ten years. The National 
Park Service played a crucial role in the development of an 
original action plan for the Lackawanna Heritage Valley that 
included a statement of national significance for the area. It 
was that document, approved by the Governor of Pennsylvania, 
which enabled the area to receive designation as a State 
Heritage Park in 1991. The Lackawanna Heritage Valley was one 
of the first areas authorized in the Pennsylvania system that 
now includes ten state heritage areas.
    In 1997 the Commonwealth of Pennsylvania's Bureau of 
Historic Preservation undertook a study of significance 
entitled ``Anthracite Coal in Pennsylvania: An Industry and a 
Region.'' The study found that ``from the perspective of 
economic, industrial, business, social, ethnic, and labor 
history the anthracite region and the anthracite industry are 
clearly of national significance.''
    Establishment of the Lackawanna Valley as a national 
heritage area would provide important resources for the ongoing 
conservation and interpretation of the natural, cultural, 
historic and recreational resources of this nationally 
significant region. Continued use of heritage areas by people 
whose traditions helped to shape the landscape enhances their 
significance. Federal recognition would encourage the 
continuation of local interest and pride in their culture and 
resources.
    The Authority has already demonstrated that it uses its 
money well. It is particularly encouraging that as a heritage 
area it is getting better and stronger. The Authority is 
accomplishing its purpose as a management entity by focusing 
public and private energy and resources on the protection and 
interpretation of the region's distinctive characteristics and 
resources. The National Park Service has been a visible and 
effective partner, but has played a modest overall role. The 
Authority is the convener that has been effective in unifying a 
variety of diverse interests around a common agenda. The 
Authority has had many projects that have successfully 
leveraged and focused non-federal as well as federal funds from 
agencies other than the National Park Service.
    To be successful a heritage area must have broad-based 
community support to take on the projects outlined in its 
management plan. There must also be a desire and ability to 
fund such projects. The Lackawanna Heritage Valley Authority 
appears to have broad community support, and the ability to 
fund projects. It has been working to successfully implement 
its original action plan and continues yearly to outline an 
aggressive agenda to work towards achieving goals focused on 
cultural, historic and environmental conservation, economic 
development, intergovernmental cooperation, and stewardship of 
the Lackawanna Valley's resources.
    Mr. Chairman, we support this legislation with the key 
modifications previously discussed. It provides financial and 
technical assistance to an area of overriding significance in 
our nation's history. The work that has been accomplished to 
date and the relationships already established, have given the 
local community the ability to demonstrate that it values its 
resources and is willing to work effectively in partnership 
with federal, state and local governments to preserve them.
    Thank you for the opportunity to testify before you today. 
This concludes my prepared remarks.

                        changes in existing law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by S. 905, as ordered 
reported.

                                  
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