[Senate Report 106-271]
[From the U.S. Government Publishing Office]





                                                       Calendar No. 508

106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-271

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



 
             EXCHANGES OF LAND AROUND THE CASCADE RESERVOIR

                                _______
                                

                April 13,  2000.--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. 1778]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1778) to provide for equal exchanges of 
land around the Cascade Reservoir, having considered the same, 
reports favorably thereon with an amendment and recommends that 
the bill, as amended, do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. EXCHANGES OF LAND EXCESS TO CASCADE RESERVOIR RECLAMATION 
                    PROJECT.

    Section 5 of Public Law 86-92 (73 Stat. 219) is amended by striking 
subsection (b) and inserting the following:
    ``(b) Land Exchanges.--
          ``(1) In general.--The Secretary may exchange land of either 
        class described in subsection (a) for non-Federal land of not 
        less than approximately equal value, as determined by an 
        appraisal carried out in accordance with--
                  ``(A) the Uniform Relocation Assistance and Real 
                Property Acquisition Policies Act of 1970 (42 U.S.C. 
                4601 et seq.); and
                  ``(B) the publication entitled Uniform Appraisal 
                Standards for Federal Land Acquisitions' as amended by 
                the Interagency Land Acquisition Conference in 
                consultation with the Department of Justice.
          ``(2) Equalization.--If the land exchange under paragraph (1) 
        is not of equal value, the values shall be equalized by the 
        payment of funds by the Secretary or the grantor, as 
        appropriate, in an amount equal to the amount by which the 
        values of the land differ.''.

                         Purpose of the Measure

    The purpose of S. 1778, to provide for equal exchanges of 
land around the Cascade Reservoir, Idaho.

                          Background and Need

    Public Law 86-92, approved July 17, 1959, prohibits the 
Bureau of Reclamation (BOR) from exchanging land within 300 
feet of Cascade Reservoir in Idaho. While private property does 
not exist within 300 feet of the Reservoir, several 
agricultural easements were reserved by landowners within that 
zone at the time BOR acquired lands for the reservoir. To 
ensure that ranching activities do not conflict with BOR's 
management of the reservoir, S. 1778 authorizes BOR to enter 
into land exchange with these operators for their rights at, or 
near, the water's edge. S. 1778 provides BOR with the legal 
authority necessary for more efficient management and better 
environmental protection of the reservoir.

                          Legislative History

    S. 1778 was introduced by Senators Craig and Crapo on 
October 25, 1999. The Subcommittee on Forests and Public Land 
Management held a hearing on S. 1778 on March 29, 2000. At the 
business meeting on April 5, 2000, the Committee on Energy and 
Natural Resources ordered S. 1778 favorably reported, with an 
amendment in the nature of a substitute.

           Committee Recommendation and Tabulations of Votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on April 5, 2000, by a unanimous voice 
vote of a quorum present, recommends that the Senate pass S. 
1778, if amended as described herein.

                          Committee Amendment

    During the considerations of S. 1778, the Committee adopted 
an amendment in the nature of a substitute. The amendment 
addresses concerns raised by the administration about the 
appropriate authority to be used by the BOR for the exchange.

                      Section-by-Section Analysis

    Section 1 amends section 5 of Public Law 86-92 (73 Stat. 
219), An Act to add certain lands located in Idaho to the Boise 
and Payette National Forest, to authorized the Secretary of the 
Interior to enter into equal value land exchanges around the 
Cascade Reservoir in accordance with the Uniform Relocation 
Assistance and Real Property Acquisitions Policies Act of 1970. 
The bill authorizes cash payments to equalize the values of 
lands to be exchanged, if necessary.

                   Cost and Budgetary Considerations

    The Congressional Budget Office (CBO) estimate of the costs 
of this measure follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 12, 2000.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1778, a bill to 
provide for equal exchanges of land around the Cascade 
Reservoir.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

S. 1778--A bill to provide for equal exchanges of land around the 
        Cascade Reservoir

    CBO estimates that enacting S. 1778 would have no 
significant impact on the federal budget. The bill could affect 
direct spending; thus, pay-as-you-go procedures would apply, 
but we expect any such impact to be insignificant over the 
2000-2005 period. S. 1778 contains no intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act and would have no significant effect on the budgets 
on state, local, or tribal governments.
    S. 1778 would amend current law to allow the Secretary of 
the Interior or negotiate exchanges of land of approximately 
equal value around the Cascade Reservoir in Idaho. According to 
the Bureau of Reclamation, the lands that would be exchanged 
under the bill have already been identified to be in excess of 
the needs of the reservoir. Those lands do not currently 
generate any significant receipts, and the agency does not 
expect them to generate any significant receipts over the next 
10 years. If lands exchanged under S. 1778 are not of equal 
value, the bill would require either the federal government or 
the grantor to make a case payment equal to the difference. 
Based on information from the Bureau of Reclamation, CBO 
estimates that any such payments would be insignificant.
    The CBO staff contact is Megan Carroll. 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. 1778.
    The bill is not a regulatory measure in the sense of 
imposing Government-established standards or 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 the 
enactment of S. 1778, as ordered reported.

                        Executive Communications

    On April 5, 2000, 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 agency recommendations on S. 1778. These 
reports had not been received at the time the report on S. 1778 
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 Bureau 
of Reclamation at the Subcommittee hearing follows:

 Statement of Eluid L. Martinez, Commissioner, Bureau of Reclamation, 
                       Department of the Interior

    I appreciate the opportunity to testify on S. 1778, a bill 
concerning land exchanges at Cascade Reservoir in Idaho. I am 
Eluid Martinez, Commissioner of the Bureau of Reclamation 
(Reclamation). S. 1778 would amend the Act of July 17, 1959 
[Public Law 86-92, 73 Stat. 218] (Act) to enable Reclamation to 
negotiate land exchanges among willing sellers and willing 
buyers at Cascade Reservoir in Idaho. The Administration 
supports S. 1778 if amended to reflect the technical concern 
described below.
    Current law (Section 5(b) of the Act) authorizes the Bureau 
of Reclamation to exchange Federal lands at Cascade Reservoir 
which are no longer necessary for project purposes. This 
authority, however, is restricted to acquiring lands within 300 
feet of the high water line and outside the extended boundaries 
of the Boise and Payette National Forests.
    For many years, Reclamation has attempted to acquire 
privately-held agricultural easements located on Federal lands 
on or near the shoreline. These easements were reserved by 
landowners at the time Reclamation acquired lands for the 
reservoir and project at Cascade Reservoir. These acquisitions 
allow Reclamation to better manage the shoreline. Exchanges 
proposed in the 1991 Cascade Resource Management Plan have been 
pursued, but the 300-foot restriction has limited negotiations. 
In some areas, the desirable agricultural easements and surplus 
Federal lands extend over half a mile from the shoreline. There 
are currently 27 private agricultural easements encumbering 
approximately 1,800 acres of Federal land.
    Modification of Section 5(b) of the Act, as proposed by S. 
1778, could allow Reclamation to reactivate a number of pending 
land exchange cases stalled by the 300-foot limitation. 
Completion of these and other land exchanges would enable 
Reclamation to better manage the Cascade project area.
    While Reclamation supports the intent to the bill to move 
the land exchange process forward, we recommend a technical 
amendment to the bill's language on appraisals. Unlike the 
Bureau of Land Management (BLM), whose on-going land exchange 
program is authorized by Sec. 206 of the Federal Land Policy 
and Management Act of 1976 (FLPMA), Reclamation does few land 
exchanges, only as authorized by location-specific legislation. 
Reclamation is experienced, however, in preparing appraisals 
for land acquisitions, consistent with the ``Uniform Appraisal 
Standards for Federal Land Acquisitions.'' These appraisal 
standards are used by 19 federal agencies, including 
Reclamation. Even FLPMA refers to the ``Uniform Appraisal 
Standards'' in Sec. 206(f)(2).
    This bill, however, would require Reclamation to do its 
appraisals under FLPMA's requirements for binding arbitration 
in the event the parties do not agree on the appraisal. For 
land exchanges at Cascade Reservoir, Reclamation seeks 
authority to do only voluntary exchanges between willing buyers 
and willing sellers--if the parties disagree on the appraisal, 
neither is compelled to go forward. We would prefer not to be 
bound by the binding arbitration provisions for appraisals in 
Sec. 206(d) of FLPMA.
    We therefore request that S. 1778 be amended to delete the 
reference to appraisals under FLPMA, and to authorize 
Reclamation to conduct the appraisals instead in accordance 
with the ``Uniform Appraisal Standards for Federal Land 
Acquisitions.'' We would appreciate the opportunity to work 
with the Subcommittee on such a technical and clarifying 
amendment.
    This concludes my testimony. I would be glad to answer any 
questions.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 1778, as ordered 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):

 AN ACT To Add Certain Lands Located in Idaho to the Boise and Payette 
National Forests

           *       *       *       *       *       *       *


    Sec. 5. (a) * * *
    [(b) The Secretary of Agriculture shall make available, 
from the lands referred to in the foregoing sections of this 
Act, to the Bureau of Reclamation of the Department of 
Interior, such lands as the Secretary of the Interior finds are 
needed in connection with the Cascade Reservoir reclamation 
project.]
    (b) Land Exchanges.--
          (1) In general.--The Secretary may exchange land of 
        either class described in subsection (a) for non-
        Federal land of not less than approximately equal 
        value, as determined by an appraisal in accordance 
        with--
                  (A) the Uniform Relocation Assistance and 
                Real Property Acquisition Policies Act of 1970 
                (42 U.S.C. 4601 et seq.); and
                  (B) the publication entitled `Uniform 
                Appraisal Standards for Federal Land 
                Acquisition', as amended by the Interagency 
                Land Acquisition Conference in consultation 
                with the Department of Justice.
          (2) Equalization.--If the land exchanged under 
        paragraph (1) are not of equal value, the values shall 
        be equalized by the payment of funds by the Secretary 
        grantor, as appropriate, in an amount equal to the 
        amount by which the values of the land differ.

           *       *       *       *       *       *       *


                                

